CITY OF ELK GROVE Incorporated July 1, 2000  MINUTES OF THE CITY COUNCIL REGULAR MEETING Wednesday, March 14, 2012  CALL TO ORDER/ROLL CALL  Mayor Cooper called the regular City Council meeting of March 14, 2012 to order at  6:16 p.m. Present: Absent:  Mayor Cooper, Vice Mayor Hume, Council Members Detrick and  Scherman.  Council Member Davis.  Mayor Cooper led the Pledge of Allegiance.  Council Member Detrick requested the meeting be adjourned in memory of Newton  Ekpo, former Multicultural Committee member.  Mayor Cooper asked that a moment of silence be observed.  APPROVAL OF AGENDA  Motion: M/S Scherman/Detrick to approve the agenda as presented. The motion  passed by the following vote: Ayes: 4; Noes: 0; Absent: 1 (Davis).  CLOSED SESSION None.  PRESENTATIONSIANNOUNCEMENTS  4.1 Council Member Scherman presented a proclamation to Adam and Steve Orwig and the Elk Grove Chapter of DeMolay declàring March 2012 as DeMolay Month.  PUBLIC COMMENT  Esther Kennedy invited the community to take part in the "Walk In Our Shoes" walk event on April 28 to benefit the Jessie Baker School to raise funds to purchase a  rubberized playground and shade canopy.  Elk Grove City Council Regular Meeting, March 14,2012 Page 1of12    GENERAL ADMINISTRATION INFORMATION  City Manager Laura Gill reviewed the March 14, 2012 Administrative Report (filed). She noted the tournament ballpark request for proposals item was scheduled for City Council review at the regular meeting of April 11. Regarding the Major League Soccer study session, she noted that, in conjunction with the contractor Conventions Sports & Leisure, a trip was scheduled with two members of the City Council for the following week to go to Frisco, Texas to visit the FC Dallas Stadium and see its operations as a sport arena and event theater, which had capacity to operate 16 to 18 fields for youth soccer as well. Ms. Gill introduced Brad Koehn, the City's new Director of Finance and Council Member Detrick disagreed with the need to conduct site visits regarding exploration of Major League Soccer facilities. He believed such actions were premature  Administrative Services.  and felt such an issue was still early in an evaluation stage. COUNCIL COMMEIE/REPOAIBINIVEE AGENDAITEMS  Council Member Scherman attended the Sacramento Public Library Authority Board meeting which called a subsequent special meeting to reach a needed quorum to take action on a particular item. She attended the grand opening of Maharani India Restaurant at 9583 Elk Grove - Florin Road and spoke to the new participants of the Elk Grove Chamber of Commerce's Leadership Program. Ms. Scherman attended the opening of the art installation Site 2801 by Gong Yuebin at the Crocker Art Museum. Vice Mayor Hume attended the Capital SouthEast Connector Joint Powers Authority Board meeting which certified the Preliminary Environmental Impact Report establishing the preferred alignment, and it was expected that in April or May that the executive director would request the City Council to confirm the preferred alignment. The Board also authorized a contract to begin outreach on design guidelines and project parameters. He attended the Sacramento Regional County Sanitation Board of Directors meeting which discussed the rate and fee study. He served as an auctioneer at the Elk Grove Police Explorer Post crab feed on March 3. Mr. Hume requested the City look into recent issues of youths trespassing and vandalizing property near City Manager Gill noted the Public Works and Police Departments were aware of issues in the area and had initiated actions and responses to address the matter. Council Member Detrick thanked staff for implementing updates to the In Memorium plaque and website for the passing of Netwon Ekpo, and requested a recognition be prepared that he would present to the Ekpo family. He attended the Foulks Ranch crab feed, the grand opening of Maharani India Restaurant, the Elk Grove Chamber of Commerce's Leadership Program seminar, the Spotlight on Public Safety Forum held  Monterey Trail High School.  Elk Grove City Council Regular Meeting, March 14, 2012 Page 2of12    March 8, and he spoke at the opening day ceremonies for the Cal Ripken Jr. baseball Mayor Cooper noted two models were currently being evaluated for the rate and fee study discussed at the Sacramento Regional County Sanitation Board of Directors  season.  meeting.  CONSENT CALENDARITEMS PUBLIC COMMENT None.  Motion: M/S Scherman/Detrick 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:  Receive Automatic Clearing House Nos. 4851 through 4989  dated February 1, 2012 through February 29, 2012, General Warrant Nos. 63799 through 64154, and Electronic Fund Transfer Nos. 2012113 through 2012130  Agenda Item No. 8.2:  Approve City Council Meeting Minutes: 1)July 13, 2011  regular meeting; 2) July 27, 2011 special meeting; 3) July 27, 2011 regular meeting, and  4) August 24, 2011 special meeting 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  Purchasing, filed through March 7, 2012  Agenda Item No. 8.4: and Bids Agenda Item No. 8.5: County Recorder Agenda Item No. 8.6:  Received report on Requests for Proposals, Qualifications, Resolution No. 2012-35 adopted accepting the Corporation  Yard Warehouse Improvements Project as complete and authorizing the City Engineer to prepare, and the City Clerk to file, the Notice of Completion with the Sacramento  Resolution No. 2012-36 adopted accepting the Quail Run  Lane and Bruceville Road Intersection Southwest Corner Improvements Project as complete and authorizing the City Engineer to prepare, and the City Clerk to file, the  Notice of Completion with the Sacramento County Recorder  Agenda Item No. 8.7:  Resolution No. 2012-37 adopted accepting the Elk Grove-  Florin Road Pedestrian Improvements Project as complete and authorizing the City  Elk Grove City Council Regular Meeting, March 14,2012 Page3of12    Engineer to prepare, and the City Clerk to file, the Notice of Completion with the  Sacramento County Recorder Agenda Item No. 8.8:  Resolution No. 2012-38 adopted accepting the Waterman  Road Realignment Project as complete, and authorizing the City Engineer to prepare, and the City Clerk to file, the Notice of Completion with the Sacramento County  Recorder  Agenda Item No. 8.9:  Resolution No. 2012-39 adopted amending the Fiscal  Years 2011-12 through 2015-16 Capital Improvement Program to establish the East Franklin Area Landscape Corridor Program and amending the Fiscal Year 2011-12 Agenda Item No. 8.10: Resolution No. 2012-40 adopted approving the application for grant funds from Section 190 Grade Separation funds for the Grant Line Road Widening Project (East Stockton Boulevard to Waterman Road) and authorizing the City Agenda Item No. 8.11: Resolution No. 2012-41 adopted: 1) amending the Fiscal Year 2011-16 Capital improvement Program and the Fiscal Year 2011-12 Budget Project by approving the allocation of $1,780,000 of Elk Grove Roadway Fee Funds for the Longleaf Drive Bridge Project; 2) authorizing the City Manager to execute a construction contract with R.A. Nemetz Construction Company, Inc. for the Longleaf Drive Bridge Project in the amount of $1,200,102.50 and authorizing the City Engineer to approve change orders not-to-exceed $180,015.50; and 3) authorizing the City Manager to execute a construction contract with the next lowest bidder if R.A. Nemetz Agenda Item No. 8.12: Resolution No. 2012-42 adopted authorizing the City Manager to sign and extend the agreement with the Sacramento Abandoned Vehicle Service Authority for the purpose of receiving reimbursement for the costs of abating Agenda Item No. 8.13: Resolution No. 2012-43 adopted authorizing the City Manager to submit a grant application to the Allstate Foundation for a safe teen driving/ awareness of distracted driving program and execute all documents necessary to Agenda Item No. 8.14: Resolution No. 2012-44 adopted authorizing the City Manager to negotiate and enter into a purchase contract, in a form acceptable to the City Attorney, for acquisition of a single-family or half-plex home for use as transitional  Budget for the East Franklin Area Landscape Corridor Program  Manager to act as the City's signatory for such grant  Construction Company, Inc. does not meet filing obligations  abandoned, unregistered, and inoperable vehicles  receive up to $20,000 in eligible grant funding  housing  Elk Grove City Council Regular Meeting, March 14,2012 Page 40 of12    Agenda Item No. 8.15: Resolution No. 2012-45 adopted authorizing the City Manager to submit an application to the California Department of Housing and Community Development for funding under the Housing Related Parks Program  PUBLIC HEARINGS None.  REGULARAGENDA. ACTION EHSIRECOAMENDATONS 16.20 related to the enforcement of substandard dwellings  Agenda Item No. 10.1: Consider amendments to Elk Grove Municipal Code Chapter  RECOMMENDATION:  Introduce and waive the full reading, by substitution of title only, an ordinance amending Elk Grove Municipal Code Chapter 16.20 relating to the enforcement of substandard Shane Diller, Code Enforcement Manager, provided an overview of the staff report and  dwellings.  recommendation. PUBLIC COMMENT: None.  Motion: M/S Hume/Detrick to introduce and waive the full reading, by substitution of title only, Ordinance No. 4-2012 amending Elk Grove Municipal Code Chapter 16.20 relating to the enforcement of substandard dwellings. The motion passed by the Agenda Item No. 10.2: Receive update on the Industrial Sites Analysis Special Project  following vote: Ayes: 4; Noes: 0; Absent: 1 (Davis).  and provide direction to staff RECOMMENDATION: as appropriate.  Receive an update on the Industrial Sites Analysis Special Project and provide direction With the aid of an overhead presentation (fied), Sarah Kircngessner, Senior Planner, provided an overview of the staff report and recommendation. The project to review industrial areas of the City commenced in 2011, with staff conducting a site inventory of area uses and site conditions. Three public workshops were held and members of the public identified primary concerns in four areas: 1) concern was raised about relabeling the light and heavy industrial from M1 and M2 to LI and HI, which could cause confusion  Elk Grove City Council Regular Meeting, March 14,2012 Page 5of12    by implementing different City and County zoning labels, 2) an additional authority of a Zoning Administrator was requested to provide expedited review for qualifying permits in industrial areas, 3) the leading concern was related to change of use fees, with a recommendation from the public that the City not reassess businesses when use changed, and 4) concern was raised of the potential for incompatible land use. The preliminary recommendations by staff included General Plan amendments, rezones, and some text amendments to the Zoning Code. The General Plan amendments regarded shifting Heavy Industry to Light Industry for portions of sites. The rezone recommendations were for specific sites from Heavy Industrial (M2) to Light Industrial (M1), and M1 to Industrial/Office Park (MP), and in the Sheldon area changing from M1 to General Commercial (GC), to be more consistent with the other adjacent land use designations. The text amendments included creation of a new approving authority in the Zoning Administrator (which would be the Planning Director), added a new Minor Use Permit, would initiate review of the industrial zoning districts allowed use tables, and proposed repealing the Travel Commercial (TC) zoning district in its entirety. Ms. Kirchgessner reviewed graphics displaying the preliminary General Plan and rezone recommendations at the various sites. She noted support was voiced by the public for removing all industrial designations in the rural Sheldon area, with a recommendation to rezone those parcels with the commercial designation of GC. The next process steps would finalize the analysis and recommendations, and retum documents for Planning Commission and City Council review and approval.  PUBLIC COMMENT:  Lynn Wheat expressed disappointment that there were no minutes of the three public workshops, but appreciated receiving the compiled general comments. She believed that the rezones and General Plan amendments recommended were to address current market conditions to get buildings rented, and was wary that consideration was not given to preserve adequate acreages of heavy industrial zoning designations. She believed the Zoning Administrator approval authority over applications should require the opportunity for public review and comment. Ms. Wheat believed the entire Site7 7 needed to be evaluated, not just the portion recommended for amendment. Todd Sperber, a property owner of a site proposed for updated zoning designations, stated that the fees were the factor that were prohibitive of prospective tenants, and if fees related to Conditional Use Permits and Certificates of Occupancy were not reduced the change in zoning designations did not benefit property owners as it would only eliminate the potential for heavy industry tenants who could move to the site (as the industrial zoning designations would be reduced). He noted shifting from M2 to M1 it reduced the cost of a Conditional Use Permit (CUP) from $70,000 to $28,800, but that price remained cost prohibitive for the majority of small businesses proposing assembly uses (such as businesses wanting to open sport related facilities, such as Soccer  World, in industrial sites).  Elk Grove City Council Regular Meeting, March 14,2012 Page 6of12    Planning Director Taro Echiburû stated the occupancy portion of a business was separate and distinct from the land use and zoning of the land. The Certificate of Occupancy was associated with what kind of business was conducted at the site, and with an occupancy for a use, regardless of the underlining zoning, a tenant could continue that use without requiring a new occupancy permit. The issue of impact fees assessed for a particular occupancy would be done at the time a tenant conducts improvements that change the occupancy of the building as related to the Building Code, not as related to the Zoning Code. The process of changing land use designations from M2 to M1 provided for greater flexibility, allowing many uses without the need of a CUP, but it did not relieve tenants from having to reassess impact fees if Council Member Detrick believed consideration should be given for a grandfather clause" to identify older properties that enjoyed greater flexibility in use prior to recent code changes, without the need to limit uses of more recent structures. He believed the fee structure could be evaluated as well. He noted that warehouse uses, compared to assembly uses and the often required roadway impact fee, were the two extremes of use from a cost perspective, and believed the City would continue to see a recurring theme with the trend of assembly use businesses seeking to utilize lower rent, Vice Mayor Hume believed that in addition to finding means to ease the fees and processes for various permits, to also seek means to accommodate expanding or relocating businesses that had paid prior fees, and consider discount charges or credits to businesses already located in the City who sought new locations or upgraded uses. He supported the recommendations but requested stakeholder outreach meetings be reconvened prior to final consideration, and noted his disagreement with stated reasons for not updating zoning title designations to HI and LI. With respect to the property of Mr. Sperber, he posed viewing that site as being served from Kent Street off of Elk Grove Boulevard rather than the more intensive use of Waterman Road, which could shift the zoning to the potential of an MP designation. Mr. Hume noted he had long advocated for revising regulations to attract, facilitate, and promote small businesses, and believed that the flex spaces provided the potential to grow small businesses into larger businesses. He believed that under current regulations, growing businesses were hindered with additional fees when considering expansion. Mr. Hume requested that when conforming uses and Zoning Code language of permitted uses was reviewed to give consideration to businesses primarily offering service or repair functions to permit an ancillary retail function to offer parts sales, without triggering entirely new Mayor Cooper and Council Member Scherman supported staff's recommendations, and exploration of a grandfather clause" in evaluating permitted uses of properties.  there were changes in occupancy use.  industrial, warehouse spaces.  requirements that would be required of a full retail store.  Elk Grove City Council Regular Meeting, March 14,2012 Page7of12    Agenda Item No. 10.3: Consider approval of the Agave Associates, LLC co-general partner ownership interest transfer to Vintage Housing Holdings, LLC and the Agave  Apartments property management change to FPI Management, Inc.  RECOMMENDATION: Adopt resolution approving:  1) The Agave Associates, LLC co-general partner ownership interest transfer to Vintage Housing Holdings, LLC, subject to receipt of confirmation from the California Tax Credit Allocation Committee (TCAC) that either a) their approval of the transfer 2) The proposed Agave Apartments property management change to FPI  is not required, or b) their approval of the transfer is granted; and  Management, Inc., subject to:  a. FPI receiving a 2.75% management fee, with an additional incentive fee of 0.75% in the event that the net operating income exceeds the annual projection by an amount equal to or greater than the incentive management b. The on-site non-revenue (property manager) unit(s) being occupied only by the full-time Community Director, Assistant Community Director, and/or  fee; and  Maintenance Supervisor.  The verbal staff report was waived. PUBLIC COMMENT: None.  In reply to Council Member Scherman, Housing Program Manager Sarah Bontrager noted the loan terms and the loaning entity limited partnership would not change, only the people involved in that limited partnership would change. She noted one benefit of the transaction was that one of the partners in Vintage Housing Holdings, LLC, which Mayor Cooper noted FPI Management, Inc. held a long standing, strong reputation in Motion: M/S Hume/Scherman to adopt Resolution No. 2012-46 approving: 1) The Agave Associates, LLC co-general partner ownership interest transfer to Vintage Housing Holdings, LLC, subject to receipt of confirmation from the Califoria Tax Credit Allocation Committee (TCAC) that either a) their approval of the transfer 2) The proposed Agave Apartments property management change to FPI  was the proposed new owner, had a ten percent share in the project.  the region.  isnot required, or b) their approval of the transfer is granted; and  Management, Inc., subject to:  a. FPI receiving a 2.75% management fee, with an additional incentive fee of 0.75% in the event that the net operating income exceeds the annual  Elk Grove City Council Regular Meeting, March 14, 2012 Page 8of12    projection by an amount equal to or greater than the incentive management b. The on-site non-revenue (property manager) unit(s) being occupied only by the full-time Community Director, Assistant Community Director, and/or  fee; and  Maintenance Supervisor.  The motion passed by the following vote: Ayes: 4; Noes: 0; Absent: 1 (Davis).  Agenda Item No. 10.4: Event Sponsorship Application Process  RECOMMEDATION: Instructions.  Provide direction to staff to release the Event Sponsorship Application and Application With the aid of an overhead presentation (filed), Sarah Bontrager, Housing Program Manager, provided an overview of the staff report and recommendation. The City had traditionally funded special events held within the City through direct funding, as well as in-kind services for police and public works services, but the application process had been unclear. The proposed Event Sponsorship Application process would create a formal process to apply for event sponsorship funds. Eligibility requirements included that applicants have nonprofit status, net proceeds would go to an Elk Grove nonprofit organization, the event would promote the goals of the City, the event would have citywide significance and be open to all Elk Grove residents, and events would not be allowed that had a political or religious focus. The application deadline was. April 6, and the process would require applications to be submitted on an annual basis, to be reviewed as a part of the budget process. Mid-year requests would only be allowed from new events that began planning after the application deadline had passed. Conditions on the grant included insurance requirements, financial reporting, and recognition of the City's sponsorship in any marketing and/or promotional materials. Ms. Bontrager noted that insurance requirements varied depending on the nature of the event, and that the questions in the application were designed to help the City Inr reply to Vice Mayor Hume, Interim City Attorney Jonathan Hobbs stated that if City was involved with funding or issuing any kind of permit type, there was liability exposure, even for events on private property through a private organization. Staff would evaluate what level of appropriate insurance was required, and work with  determine if a higher level of insurance would be required.  applicants to ensure sufficient coverage was provided.  PUBLIC COMMENT: None.  By consensus the City Council provided direction to proceed and release the Event  Sponsorship Application and Application Instructions.  Elk Grove City Council Regular Meeting, March 14,2012 Page 9of12    Agenda Item No. 10.5: Closure of Elk Grove Boulevard for "Second Saturday" Events Provide direction regarding the closure of Elk Grove Boulevard for four hours on the second Saturday for the months of April through October for the purpose of holding Laura Gill, City Manager, provided an overview of the staff report and recommendation. Starting May 2010 the Old Town Elk Grove Foundation (the Foundation) commenced holding First Friday events, in December 2011 the Foundation canceled future First Friday events due to insurance coverage requirements. The item tonight was consideration of closing Elk Grove Boulevard one Saturday evening a month to reinstate the Foundation holding the event. The road closure would provide attendees with the safest environment, but closure on Friday evenings was problematic due to concerns of diverting traffic during the peak afternoon rush hour, and impairing response times of first responders in case of an emergency. Both police and fire had expressed support for a closure on a nonpeak rush hour time, and would support the  RECOMMEDATION:  events sponsored by the Old Town Elk Grove Foundation.  closure for the event on any Saturday.  PUBLIC COMMENT:  Paula Maita, President of the Old Town Elk Grove Foundation, stated the First Friday event was canceled by the Foundation in December 2011 due to insurance concerns. She believed the proposed road closure would enable reinstating the event, that the event was supported by local merchants, and the event furthered the goals of the Foundation in creating a community interaction experience in historic Old Town. Ms. Maita noted consideration had not been given of consolidating the Saturday event street closure with other weekend events as a cost savings measure. She expressed the Foundation's objective to have a consistent weekend for when the event was offered once a month, and noted feedback from vendor participants to not host the event on second Saturdays of the month, as other jurisdictions in the region hosted similar events on such a schedule. She stated vendors were selected by seeking local crafters and artists, and sought unique local food vendors that were non-duplicative of offerings available from businesses located in Old Town, though noted a greater emphasis was to provide a community entertainment venue. Consideration was given to assist the larger business community to provide booth space with some form of sponsorship, but as the event was brief, any fees established would likely be minimal. Vice Mayor Hume preferred a Friday evening for the event, inquiring if consideration was given to address the insurance requirement concerns, such as the City absorbing the cost, developing effective detours to route, or better control, peak rush hour traffic, or holding the event on streets in the vicinity of Elk Grove Boulevard. Mr. Hume also  Elk Grove City Council Regular Meeting, March 14,2012 Page 10of12    inquired if consideration had been given to form a business improvement district or merchants association to expand capacities to advertise the event, noting increased awareness of the event to residents on the west side of town would be beneficial. Ms. Maita stated the Foundation's insurance agent believed a safe environment needed to be secured, and one accident would be one too many. In regards to dispersing the event to side streets, it was not expected that foot traffic would effectively circulate back toE Elk Grove Boulevard, and that the Foundation and local merchants were in support of the road closure to keep the event on the main street of Old Town. She acknowledged that as the Foundation was a 501(c)3 organization, it could not advertise the private commercial offerings of an event, but it could invite residents to a community event. The formation of a merchants association could promote and advertise the interests of retail merchants, and a committee from the Foundation was exploring the viability of Council Member Detrick believed event costs could approach a net zero cost if vendor booth fees were pursued, and inquired if fees had been requested of local businesses in the event area, noting that he believed restaurants and stores during the First Friday events benefitted in receiving increased foot traffic and additional customers on such nights. He suggested consideration be given for Old Town restaurants and business to be permitted outdoor space as well, and to consider offerings of alcohol in the enclosed City Manager Gill noted that if a goal was established to achieve zero cost to the City for special events, that evaluation should occur of other events as well, noting the example of the Western Festival which had an accompanying carnival that was privately operated, and inherently benefitted from the hosting of that special event. Council Member Detrick believed several of the special events in the City were community events that did not have direct beneficiaries, whereas he considered this Saturday event a business event to encourage patronage of businesses in Old Town. Vice Mayor Hume disagreed that the Saturday event was solely a business event, citing his past experiences of the First Friday events that generated a spirit of communal gathering and an improved quality of life experience. He believed that currently there were limitations of what the Foundation could pursue, suggested that a name be crafted to identify the event, and that funding sources be sought to sustain and expand the By consensus the City Council provided direction to approve the closure of Elk Grove Boulevard for a recurring Saturday of the month for the months of April through October for the purpose of holding events sponsored by the Old Town Elk Grove Foundation. Agenda Item No. 10.6: Consider introduction of an ordinance amending Elk Grove Municipal Code Section 30.50.150, Payment Security Requirements for Non-Residential  such an option.  area of the event, such as wine tasting, to event patrons.  event.  Elk Grove City Council Regular Meeting, March 14,2012 Page 11of12    Haulers, to make the collection of a payment security from non-residential haulers  optional rather than mandatory RECOMMEDATION:  Introduce and waive, by substitution of title only, an ordinance amending Elk Grove Municipal Code Section 30.50.150 regarding Solid Waste Management payment  security requirements for non-residential haulers. The verbal staff report was waived. PUBLIC COMMENT: None.  Motion: M/S Hume/Scherman to introduce and waive the full reading, by substitution of title only, Ordinance No. 5-2012 amending Elk Grove Municipal Code Section 30.50.150 regarding Solid Waste Management payment security requirements for non- residential haulers. The motion passed by the following vote: Ayes: 4; Noes: 0;  Absent: 1 (Davis). ADJOURNMENT  With no additional business to conduct, the March 14, 2012 regular City Council meeting was adjourned in memory of Rod Blonien and Newton Ekpo at 7:48 p.m.  JASONL LINDGRENAGRYCIERK   ATTEST:  COOPER, MAYOR  Ll  JAMES  Elk Grove City Council Regular Meeting, March 14,2012 Page 12of12