CITY OF ELK GROVE Incorporated July 1, 2000  MINUTES OF THE CITY COUNCIL  REGULAR MEETING Wednesday, April 24, 2013  CALL TO ORDER/ROLLCALL  Mayor Davis called the regular City Council meeting of April 24, 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 Trigg led the Pledge of Allegiance. Mayor Davis asked that a moment of silence be observed.  APPROVAL OF AGENDA  Motion: M/S Hume/Detrick to approve the agenda as presented. The motion passed  by the following vote: Ayes: 5 Noes: 0.  CLOSED SESSION None.  PRESENTATIONS/ANNOUNCEMENTS  4.1 With the aid of an overhead presentation (filed), Kristi Taddonio, General Manager, gave a presentation on the business name change from Allied Waste  to Republic Services, Inc.  Mayor Davis presented a Certificate of Recognition for the service of Jerry Mayberry for his many years of dedicated service in the waste management and recycling industries, 4.2 Mayor Davis presented a proclamation declaring May 2013 as Bike Month to Trails Committee members Sharon Anderson and Mark Mendenhall  and service as a contributing member of the Elk Grove community.  4.3 Bestin-BusineS6-Award-Presentation  Mayor Davis noted the presentation of the "Best in Business" Award for the current recognition cycle would be postponed to a future meeting date as the recipient was ill  and could not attend the night's meeting.  Elk Grove City Council Regular Meeting, April 24, 2013 Page 1of10    4.4 Chair Orlando Fuentes provided a presentation and annual update on the With the aid of an overhead presentation (filed), Mr. Fuentes noted accompishments over the past year of the Multicultural Committee starting with the holding of the first Multicultural Festival for Elk Grove on August 25, 2012, an event held at Elk Grove Regional Park attended by approximately 4,000 people enjoying a variety of ethnic foods, music and entertainment, and informational outreach booths. The event budget was $20,000 and overall expenditures were kept to $11,000, the remaining funds would be invested in banners to publicize future Multicultural Festivals on the main boulevards of the City. The festival event had won regional awards, taking first place from the California Association of Public Information Officials and a first place award from the Sacramento Public Relations Association. The Multicultural Committee hosted a reading on April 16 to commemorate the 50th anniversary of the publication of Dr. Martin Luther King Jr.'s "Letter from Birmingham Jail", with the reading conducted by committee member Dr. Bernice Bass de Martinez. The Multicultural Committee had conducted outreach throughout the year participating in the Cosumnes Community Services District Teen Action Committee's Multicultural Fair, the community vigil to recognize the tragedy that occurred at Sandy Hook Elementary School, and the Peace Through Understanding forum conducted by the Laguna Sunrise Rotary Club. In the upcoming year the committee planned to conduct more community forums to discuss and educate on multicultural issues, to expand the calendar of local and regional multicultural events and celebrations, to introduce a website book club with lists of books of different cultures and interests, and to continue organizing efforts for the  Multicultural Committee  production and implementation of the 2013 Multicultural Festival.  PUBLIC COMMENT  Ann Hennessey addressed regulations and recent discussion of signage for small businesses, and supported providing for increased allowances of signage for small Colin Saeger expressed his disappointment that the City Council did not pursue a six month pilot program to evaluate increased business signage at the April 11 meeting. He noted the action to consider monument signs would be ineffective for current businesses, as property owners were unlikely to invest in increased signage for existing properties. He noted that currently both mechanical signs and persons waving signs were prohibited, but the low cost to establish and maintain a mechanical sign could increase business sales relating to increased operations bringing additional jobs and revenue for the City. Mr. Saeger opposed the recommendation under Item 10.1 to provide an Economic Incentive Agreement to a potential restaurant to open in the City, believing a private business should fund its own start up and operation costs, and questioned the portion of the request for equipment and furnishings as most commercial Council Member Hume noted in regards to the furnishing and equipment request that the prior operator at the location had stripped all of the equipment and furnishings.  businesses.  facilities had existing furnishings available.  EIK Grove City Council Regular Meeting, April 24, 2013 Page 2of1 10    GENERAL ADMINISTRATION INFORMATION  City Manager Laura Gill reviewed the April 24, 2013 Administrative Report (filed). COUNCIL COMMENTS/REPOREPORTS/FUTURE AGENDA ITEMS  Vice Mayor Detrick attended the Kammerer Road Project Workshop, the Cap to Cap trip to Washington D. C. serving on the Jobs and Business Growth Team, an appreciation dinner for volunteers of the Elk Grove Food Bank Services, and attended an event Council Member Cooper attended the Sacramento Regional County Sanitation Board of Directors meeting which reviewed the budget and hiring positions for the waste water treatment facility. He attended the event recognizing the service of Jerry Mayberry and the Multicultural Committee's April 16 reading of the "Letter from Birmingham Jail". Council Member Hume attended the Sacramento Regional Transit District (RT) Board meeting which received a presentation on the Fiscal Year 2013-14 budget, noting additional funds would be placed in reserves. He attended the Sacramento Transportation Authority (STA) Board meeting noting consideration of continued support funding for the Connector JPA Project was continued for discussion. He attended the Kammerer Road Project Workshop. noting stakeholders expressed concern with proposed route and timing of project, and attended the fourth annual "Walk to Remember" honoring Sergeant First Class Bryan E. Hall and all American soldiers. Mr. Hume relayed receiving a phone call from a concerned citizen of a barking dog nuisance and inquired what recourse the citizen would have to address the matter. Police Chief Robert Lehner clarified policies on barking dog nuisances, noting information from witnesses was catalogued, but citizens needed to continue contact with the City to instantiate a case and then commence to build the record. With multiple complaints received logs would be initiated, and the owner of an identified nuisance animal would then receive notices as a warning, and afterwards cited if the nuisance Council Member Trigg thanked staff for addressing traffic issues raised regarding Del Webb Boulevard, and he noted a meeting would be held April 26 in conjunction with the Cosumnes Community Services District to address parking issues at Buscher Park. Mayor Davis attended the recognition breakfast for the Volunteers in Police Services (VIPS), the Taste of Elk Grove event hosted by the Laguna Sunrise Rotary Club, and  recognizing the service of Jerry Mayberry.  was not abated.  the Visakhi Festival hosted by the Sacramento Punjabi Cultural Society.  CONSENT CALENDAR ITEMS PUBLIC COMMENT None.  Elk Grove City Council Regular Meeting. April 24, 2013 Page 3of10    Council Member Trigg noted he would abstain from voting on Item 8.2 regarding past Motion: M/S Detrick/Trigg to approve the Consent Calendar as presented (noting Council Member Trigg's abstention on Item 8.2). The motion passed by the following  minute sets for meetings he had not attended as a Council Member.  vote: Ayes: 51 Noes: 0.  Agenda Item No. 8.1: Received February 2013 Treasurers Report  Agenda Item No. 8.2: Approved City Council Meeting Minutes for: 1) September 26, 2012 regular meeting; 2) October 10, 2012 regular meeting; and 3) October 24, 2012 Agenda Item No. 8.3: Received report on City Manager approved purchases and contracts authorized by Elk Grove Municipal Code Chapter 3.42 Contracts and Agenda Item No. 8.4: Received report on Requests for Proposals, Qualifications, and Agenda Item No. 8.5: Resolution No. 2013-66 adopted authorizing the City Manager to submit a grant application to the Sacramento Office of Emergency Services State Homeland Security Grant Program for an Incident Response Vehicle and execute all Agenda Item No. 8.6: Resolution No. 2013-67 adopted finding that no further environmenta review is required under the California Environmental Quality Act for the School Street Alley Storm Drainage improvements Project (WDR007); authorizing the City Manager to execute a construction contract with Sierra National Construction dba Sierra National Asphalt for the School Street Alley Storm Drainage Improvements Project in the amount of $132,487; authorizing the City Engineer to approve change orders not-to-exceed $19,873; and authorizing the City Manager to execute a construction contract with the second lowest bidder if Sierra National Construction dba Agenda Item No. 8.7: Resolution No. 2013-68 adopted approving Subdivision No. 04- 727.03, Franklin Crossing Village 3 Final Map and authorizing the City Manager to Agenda Item No. 8.8: Resolution No. 2013-69 adopted accepting the Tree Removal at Elk Grove Boulevard I State Route 99 Interchange Project as complete and authorizing the City Engineer to prepare and the City Clerk to file the Notice of Agenda Item No. 8.9: Resolution No. 2013-70 adopted accepting the Transitional Housing Rehabilitation Project on Jonell Court as complete and authorizing the Housing Program Manager to prepare and the City Clerk to file the Notice of Completion with the  regular meeting  Purchasing, filed through April 17, 2013  Bids  documents necessary to receive up to $246,000 in grant funding  Sierra National Asphalt does not meet filing obligations  execute the Subdivision Improvement Agreement  Completion with the Sacramento County Recorder  Sacramento County Recorder  Elk Grove City Council Regular Meeting, April 24,2 2013 Page 40 of 10    Agenda Item No. 8.10: Resolution No. 2013-71 adopted authorizing the City Manager to execute the necessary documents to renew the master agreement with Sjoberg Evashenk Consulting, Inc. for internal audit services for Fiscal Year 2013-14 and Agenda Item No.8.11: Resolution No. 2013-72 adopted authorizing the City Manager to execute the necessary documents to amend the utility billing goods and services contract with InfoSend, extending the contract for one, three-year term, and authorizing an expenditure of $300,000 [for a total expenditure of funds over the contract term not- Agenda Item No. 8.12: Resolution No. 2013-73 adopted supporting reorganization of the Solid Waste Advisory Committee /AB 939 Local Task Force Rules and Structure Agenda Item No. 8.13: Resolution No. 2013-74 dispensing with the request for proposal (RFP) process and authorizing the City Manager to execute a Second Amendment to the contract with Solutions for Transit for the GFI Reporting Project in the amount of $50,100 [for a total compensation amount not to exceed of $100,000] Agenda Item No. 8.14: 1) Resolution No. 2013-75 declaring intention to annex territory to Community Facilities District No. 2006-1 (Maintenance Services) and to levy as special tax to pay for certain landscaping and maintenance services (Annexation No. 24); 2) Resolution No. 2013-76 declaring intention to annex territory to Community Facilities District No. 2003-2 (Police Services) and to levy a special tax to pay for infrastructure and police services (Annexation No. 23); 3) Resolution No. 2013-77 declaring intention to levy Street Maintenance District No. 1, Zone 3-H (Annexation No. 19); and 4) Resolution No. 2013-78 declaring intention to levy Street Maintenance  authorizing an expenditure of funds not-to-exceed $90,000  to-exceed $950,000]  District No. 1, Zone 5-C (Annexation No. 6)  PUBLIC HEARINGS  Agenda Item No. 9.1: A public hearing to consider a grant application to the California Department of Transportation (Caltrans) for the Federal Transit Administration (FTA) 5310 Elderly and Disabled Specialized Transportation Program to replace three e-van  minivans  RECOMMENDATION:  Adopt resolution authorizing the City Manager to submit an Application for $135,000 to the California Department of Transportation for Federal Transit Administration Section 5310 Elderly and Disabled Specialized Transportation Program funds for the purchase Ed Coviello, Transit Planner, presented an overview of the staff report and recommendation. In 2006 the City acquired three minivans, those minivans now had over 200,000 miles each, past the intended life span for use as transit vehicles. The application for $135,000 of federal funds, administered through the California Department of Transportation, sought to replace the minivans. The application was submitted in March, with the Sacramento Area Council of Governments (SACOG) serving as the lead agency for final ecommendations. and the application had been  of three replacement e-van minivans  Elk Grove City Council Regular Meeting, April 24,2013 Page 50 of10    scored and recommended for approval by SACOG. The public hearing was required for  final submittal of the application.  Mayor Davis declared the public hearing open.  PUBLIC COMMENT: None.  Mayor Davis declared the public hearing closed.  Motion: M/S Cooper/Davis to adopt Resolution No. 2013-79 authorizing the City Manager to submit an Application for $135,000 to the California Department of Transportation for Federal Transit Administration Section 5310 Elderly and Disabled Specialized Transportation Program funds for the purchase of three replacement e-van minivans. The motion passed by the following vote: Ayes: 5 Noes: 0. REGULAR AGENDA ACTION TEWS/RECOAMENDATONS  Agenda Item No. 10.1: Consider a resolution authorizing the City Manager to execute an Economic Incentive Agreement with Working Class Heroes, LLC for their project  called Broderick General Store ini the amount of $175,000  RECOMMENDATION:  Adopt resolution authorizing the City Manager to execute an Economic Incentive Agreement with Working Class Heroes, LLC in the amount of $175,000 for their project called Broderick General Store to be located at 9085 Elk Grove Boulevard With the aid of an overhead presentation (filed), Heather Neff, Economic Development Coordinator, presented an overview of the staff report. The item related to an economic incentive request from a prospective tenant seeking to occupy the General Store / Brewery Building located at 9085 Elk Grove Boulevard in Old Town Elk Grove. The economic development incentive program was approved in 2009, staff met with applicant representatives of Working Class Heroes, LLC in February 2013, and the applicant submitted an incentive application in March for a proposed restaurant project called Broderick General Store. The original Broderick Roadhouse was located in West Sacramento, a restaurant originated from the expanded operations of the Wicked Wich Food Truck. The restaurant was modeled as a full service, family friendly restaurant featuring locally sourced ingredients. The location and building was of interest to the applicants as the building ideally suited the company's brand of historic with western elements. Ms. Neff provided information about the applicant team and projects they had worked on in the region. The request was for an incentive amount of $175,000, with $125,000 to assist with start-up costs for the restaurant, and $50,000 for Marvin Maldonado, Matt Chong, and Chris Jarosz, representing Working Class Heroes, LLC as the applicants, provided opening comments on the project and incentive request. The applicant team noted the opportunity for this project stemmed from the operations of their West Sacramento restaurant the Broderick Roadhouse. The owner of the 9085 Elk Grove Boulevard building approached the team to come and look at the  advertising expenses.  Elk Grove City Council Regular Meeting, April 24,2013 Page 6of10    building, and the group was looking for a space for future expansion and growth of the company. Part of their business model was creating a restaurant as an anchor draw amenity to give the surrounding community a positive focus to then revitalize the surrounding neighborhood. The team saw an opportunity in locating in Old Town Elk Grove to step into another community outside of the grid of downtown Sacramento. The brand and product was based on the method of service delivery and the process and ingredients in preparing the food served; a locally owned independent businesses with food that wasn't mostly processed, sourcing products from local purveyors reinvesting operations back into the immediate community with fellow independent businesses. Marketing for the Broderick Roadhouse sought to overcome a negative stigma of the neighborhood fostered by challenges faced by the community decades earlier, with the goal to reclaim the neighborhood name and provide a positive image, association, and draw to the area. Similar marketing advertising would be utilized to highlight the Old Town Elk Grove area, and the team would pursue reaching out to fellow businesses, the Old Town Elk Grove Foundation, and Elk Grove Chamber of Commerce to create a comprenensive marketing and activity plan to draw people into  the area.  PUBLIC COMMENT:  Barbara Sloan opposed awarding $175,000 to a specific business, and believed if such funds were available that the money should be returned back to the citizenry. Marie Mertz opposed awarding $175,000 for a single project. She believed the City should consult with the business community on the parameters of a program to support local businesses, noting she was not aware the current economic development incentive program was available for restaurant businesses, and believed the funds in the program would better serve local businesses by being spread out to assist more businesses at lower threshold award amounts. She noted opening a restaurant was a risky venture, with many folding within one to two years. Ms. Mertz believed the applicants represented themselves as a good restaurant business team, but believed Lynn Wheat addressed she had advocated that the Leatherby's Family Creamery locate in the area of Old Town Elk Grove, but had been informed there was not enough parking availability in the area for such a use, and questioned how parking would be addressed for this restaurant. She criticized characterizations of "free parking" in Old Town as lots were leased using City funds. Ms. Wheat requested as this incentive was reviewed to consider the similar scenario as to why locating Leatherby's in Old Town Anthony Cooper questioned allocating $175,000 to one company, when funds could be put to other uses, giving the example of public safety programs such as implementing speed control devices. He expressed his understanding that certain funds were tied to particular uses, but believed these funds were discretionary and should be used to meet David Woodell opposed awarding $175,000 to a private business, raising concerns over general fees and policies imposed by the City on small businesses. He relayed the  private businesses should front costs in pursuing a business venture.  was not pursued.  needs that better served a larger segment of the community.  Elk Grove City Council Regular Meeting, April 24,2013 Page 7of10    example of Crescent City providing over $1 million dollars to fund a brewery through an economic incentive program, and the business proceeded to go bankrupt. Mr. Woodell believed the focus of discussion should be means to assist small businesses, build up successful businesses with a financial and operational history, and to spread the risk of economic development funds by funding numerous businesses in smaller amounts. Ron Krieg did not support an award of $175,000 to a single business, and believed starting with such a subsidy would lead to continued funding requests and related on- going expenses. Mr. Krieg believed the business as presented would succeed at the The applicant team for Working Class Heroes, LLC responded to questions of the City The initial amount of $125,000 would go towards equipment and getting the building back up into operable shape as the previous tenant had stripped much The project was not a relocation of an existing business, rather the site would be ar restaurant and become the main operation center for the company, relocating all offices with an intent to incorporate a retail oriented space within the Old Town Elk Grove had parking in the area, and the intent of the restaurant was to create an anchor location serving as a catalyst for a more walkable approach to all of Old Town. The Broderick Roadhouse in West Sacramento seated 67 customers, and the design for Elk Grove would seat 180 (50 intended for outdoor The Broderick Roadhouse had approximately 20% of the amount of daily traffic compared with the Elk Grove location, and currently produced approximately $100,000 in gross sales per month; the Elk Grove location was expected to provide 60-70 jobs, projected gross receipts at $2.83 million annually, reaching near $3.1 million by 2017 toward the later half of the expected fixed lease period; The lease period was under discussion with the property owner, along with discussions for the owner to conduct certain tenant improvements on the building The City of West Sacramento did not provide any initial incentives for the Broderick Roadhouse, but had since approached the business to help it expand which had led to current negotiations for tax incentives and formats of forgivable Working Class Heroes, LLC was investing in the project and the request for the incentive would accompany their private funds, budgeting $400,000 total for the  proposed location without any assistance from the City.  Council as follows:  of the prior equipment out and damaged the interior by doing so;  restaurant;  dining eight months out of the year);  prior to lease;  loans based on performance;  project.  Vice Mayor Detrick provided disclosure statements noting he had met and worked with Mr. Jarosz on the ordinance regarding food trucks, had collaborated on several events and ventures for food truck events, and that he knew the property owner of the proposed project location. He noted he had visited the Broderick Roadhouse and seen the positive effect it had on the surrounding neighborhood. He voiced concern for the amount of $175,000, and suggested the equipment and furniture costs be handled through a low interest loan. Mr. Detrick believed an incentive of a lower amount such as  Elk Grove City Council Regular Meeting, April 24,2013 Page 80 of10    $50,000 could be recouped within two years based on the project's conservative Mayor Davis stated the economic development fund was budgeted for each year to attract this type of project. He believed the program was open and available to business owners, and the applicant team had submitted a responsive application meeting criteria of the program and were prepared to invest their assets in a historic building resource in Old Town Elk Grove. Mr. Davis believed the project, broader business plan, and history of success of the applicant would benefit Old Town, and the generated annual sales tax Council Member Cooper provided disclosure statements that he knew two of the three representatives, and applauded their work to date and business model. He held reservations on the amount of funding, noting the economic development fund was a finite amount of money. Mr. Cooper believed there was too much risk to place the majority of the fund with one company starting a restaurant business, and granting the application would bring additional requests (many of which would be denied due to a Council Member Hume commended the applicants' current businesses and the commitment to resurrect the image and association of Broderick for West Sacramento. He believed the project would revitalize the building and Old Town, but suggested consideration to brand "roadhouse" rather than Broderick. He noted receiving public input that restaurants, or similar service industry businesses, were not the type of economic development expected to be targeted by the economic incentive program. He believed the project invested in the building, would create an area resource, enhance Old Town, and would rehabilitate a facility currently in disrepair. He appreciated the proposal for the larger Old Town advertising campaign, but believed the initial business should be proven viable and established prior to exploring that avenue of advertising funding. He suggested considering a lien on the building for the amount of the $125,000 incentive that would diminish $25,000 each year, a forgiveness loan based on performance to remain operational for five years that would be revenue neutral when Council Member Trigg believed there was support for the project at the location, but the incentive amount requested and terms of any repayment would need to be clarified. City Attorney Jonathan Hobbs noted any agreement utilizing a lien on the property would require agreement from the property owner. If the operation closed prior to the expected forgiveness period the City would want some form of security to call on. A hard asset, such as a lien on property, was preferred over a personal guarantee, as it could be difficult to ascertain assets owned by individuals or a business entity. If consideration was being given for a means to provide a security for the incentive funding, staff would need to meet with representatives and return an item for Mr. Maldonado noted an amount of $25,000 would not enable them to proceed with the project. The applicant team was interested in pursuing the amount of $125,000, but in  estimates of projected annual sales tax revenues.  would recoup the cost of the incentive.  lack of funds if the majority was expended on this project).  factoring in the sales tax revenue generated.  consideration.  Elk Grove City Council Regular Meeting, April 24,2013 Page 9of1 10    evaluating security options they noted they would need to discuss the matter with the In reply to Council Member Cooper, City Manager Gill noted the eçonomic development Council Member Hume added that when looking at the policy to differentiate the criteria between an existing building that was vacated and now falling into disrepair, and that of ab building of new construction that was merely vacant but had yet to be utilized. City Attorney Hobbs summarized City Council direction to return an item for consideration after the applicants, City, and the property owner discussed terms for a five year forgivable loan in the amount of $125,000, discussing conditions to repay if in Council Member Cooper stated he was opposed to considering a forgivable loan at the amount stated for this project under the economic development incentive program.  property owner in regards to any kind of lien on the property.  incentive program policy would be revisited.  default, and any securities to be utilized.  ADJOURNMENT  With no additional business to conduct, the April 24, 2013 regular City Council meeting  was adjourned at 8:28 p.m.  - LA JASONI LINDGRENSHTY CLERK  ATTEST:  EDA  Elk Grove City Council Regular Meeting, April 24, 2013 Page 100 of10