CITY OF ELK GROVE Incorporated July 1, 2000  MINUTES OF THE CITY COUNCIL Wednesday, February 8, 2012  REGULAR MEETING  CALL TO ORDER/ROLL CALL  Mayor Cooper called the regular City Council meeting of February 8, 2012 to order at  6:19 p.m. Present: Absent:  Mayor Cooper, Vice Mayor Hume, Council Members Davis, Detrick and  Scherman. None.  Mayor Cooper led the Pledge of Allegiance.  Mayor Cooper asked that a moment of silence be observed.  APPROVAL OF AGENDA  Motion: M/S Scherman/Hume to approve the agenda as presented. The motion  passed by the following vote: Ayes: 5; Noes: 0.  CLOSED SESSION None.  PRESENTATIONS/ANNOUNCEMENTS  4.1 Mayor Cooper presented Certificates of Achievement to the Elk Grove Wolves 14 and Under Boys Soccer Team and the Elk Grove Edge 13 and Under Giris Soccer Team, recipients of the 2011-12 CYSA Association Cup Championships.  PUBLIC COMMENT  Lynn Wheat noted the Elk Grove Sphere of Influence (SOI) application was tentatively scheduled to go before the Sacramento Local Agency Formation Commission (LAFCo) March 7, 2012. She shared citizen responses from the 2011 National Citizen Survey, believed the pace of development of the City should be slowed, that future growth should be directed by what residents want, and she provided a website address for the  Elk Grove City Council Regular Meeting, February 8, 2012 Page1of18    organization Elk Grove GRASP, which addressed matters of land use planning in Elk Ed Owen opposed the SOI, believing that currently there was an abundance of undeveloped property within the City boundaries, and over 400,000 square feet of unoccupied commercial and business space. He believed the SOI would lead to land devaluation and reduced equity for current home owners, and that focus should be  Grove, at www.elkgrovegrasporg  given to in-fill development in existing City boundaries. GENERAL ADMINISTRATION INFORMATION  City Manager Laura Gill reviewed the February 8, 2012 Administrative Report (filed).  COUNCIL COMMENTS /REPORTS/FUTURE AGENDAITEMS  Council Member Detrick attended the Sacramento Metro Chamber Annual Dinner and Business Awards event, attended a Cub Scout pinewood derby, and a press conference tor raise the level of awareness regarding the shootings of the two community members that took place March 4, 2011. Mr. Detrick announced the 2nd Annual Elk Grove Mayor's Charity Casino Night event would be held April 27 at Strikes Family Entertainment Vice Mayor Hume noted the recent Capital SouthEast Connector Joint Powers Authority Board meeting was cancelled, but stated the next meeting in March was scheduled to hear whether or not to recertify the Preliminary Environmental Impact Report. He noted he was not able to attend the Sacramento Regional County Sanitation Board of Council Member Scherman requested an update on the relocation of the bus stop in front of Joseph Kerr Middle School. She noted the continuing problem of the proliferation of illegal signs about the City, requesting the schedule for the next sweep by Code Enforcement. She announced she was elected as Chair of the Sacramento Public Library Authority Board. Ms. Scherman noted participating in the Little Saigon Vietnamese Parade, and stated she would not be attending the Sacramento Metro Council Member Davis noted in relation to signs that he had received a resident complaint regarding temporary signs posted on a regular basis along Bruceville Road between Laguna Boulevard and Big Horn Boulevard. He announced that February 16 an elected official information session to receive an update on the Metropolitan Transportation Plan (MTP) and sustainable community strategy would be held by the Sacramento Area Council of Governments (SACOG), and was open to the public to  Center to benefit Elk Grove Food Bank Services.  Directors meeting.  Chamber Cap to Cap trip to Washington D. C.i in April.  Elk Grove City Council Regular Meeting, February 8,2012 Page2of18    participate. Mr. Davis reported the SOI subcommittee had been meeting with the LAFCO Board Members to check scheduling, and he believed the next meeting would Mayor Cooper attended the Sacramento Regional County Sanitation Board of Directors meeting which discussed budget plans and permit issues. Mr. Cooper noted that street Vice Mayor Hume noted the same issue of fading street signs on the east side of the  likely move to April.  signs in East Franklin were fading and illegible.  City as well.  CONSENT CALENDAR ITEMS PUBLIC COMMENT  Lynn Wheat spoke in regards to Item 8.10 related to the 2011 National Citizen Survey, and believed additional public discussion should occur regarding the results and responses. She felt the survey was of limited scope, having only 1,200 surveys mailed out, with only 300 responses. She noted the additional web survey hosted by the City generated another 396 responses, and believed that was a preferred mechanism to Vice Mayor Hume commented regarding Item 8.10 that although the responses were negligible in terms of total residents surveyed, the returned surveys were a statistically valid response. He reviewed various examples and noted the survey displayed Council Member Scherman inquired regarding Item 8.12 what the criteria were in deciding what type of bus shelters were installed when implementing the Bus Stop Improvements Project, noting certain areas of the City required a higher level of Public Works Director Richard Shepard stated a report would be returned on the Mayor Cooper noted that the bus shelter replaced at Laguna Boulevard and Interstate 5 was previously enclosed, and he had received complaints as the new shelter was not Motion: M/S Detrick/Hume to approve the Consent Caiendar as presented. The  place a survey out to the community.  improvement in the majority of categories from the 2009 survey.  protection from the elements.  evaluation criteria.  an enclosed structure.  motion passed by the following vote: Ayes: 5; Noes: 0.  Agenda Item No. 8.1:  Received November 2011 Treasurer's Report  Elk Grove City Council Regular Meeting, February 8, 2012 Page3of18    Agenda Item No. 8.2:  Received Automatic Clearing House Nos. 4716 through  4850 dated January 1, 2012 through January 31, 2012, General Warrant Nos. 63137 through 63798, and Electronic Fund Transfer Nos. 2012101 through 2012112  Agenda Item No. 8.3: Minutes Agenda Item No. 8.4:  Approved June 22, 2011 City Council Special Meeting Received report on City Manager approved purchases and  contracts authorized by Elk Grove Municipal Code Chapter 3.42 Contracts and  Purchasing, filed through February 1, 2012  Agenda Item No. 8.5: and Bids Agenda Item No. 8.6:  Received report on Requests for Proposals, Qualifications, Ordinance No. 1-2012 adopted adding Elk Grove Municipal  Code Section 12.01.085 and amending Chapter 12.03 to Title 12 defining development projects that are subject to street improvement requirements (Second Reading)  Agenda Item No. 8.7: (Second Reading) Agenda Item No. 8.8:  Ordinance No. 2-2012 adopted amending Elk Grove  Municipal Code Chapter 1.18 relating to Development Services flat fee appeals  Resolution No. 2012-15 adopted authorizing the City  Manager to make available up to 50 Treatment Capacity Bank Sewer Fee Credits to  Sacramento International Airport Agenda Item No. 8.9:  Resolution No. 2012-16 adopted authorizing the City  Manager to execute a consultant contract with GIS Planning, Inc. to provide economic development site selection software services for a five-year term in the amount of Agenda Item No. 8.10: Received and filed information related to The National Agenda Item No. 8.11: Resolution No. 2012-17 adopted increasing the Public Works Director's change order authority from $3,000 to $5,000 for the Old Town Stub (9070 Elk Grove Blvd) Drainage Improvements Project; and Resolution No. 2012-18 accepting the Old Town Stub (9070 Elk Grove Boulevard) Drainage Improvements Project as complete and authorizing the City Engineer to prepare, and the City Clerk to  $99,000  Citizen Survey - 2011  file, the Notice of Completion with the Sacramento County Recorder  Elk Grove City Council Regular Meeting, February 8, 2012 Page 4of18    Agenda Item No. 8.12: Resolution No. 2012-19 adopted accepting the contract with FBD Vanguard Construction for work completed for the Citywide Bus Stop Improvements Project - Phase 1 as complete and authorizing the City Engineer to prepare, and the City Clerk to file, the Notice of Completion with the Sacramento County Agenda Item No. 8.13: Resolution No. 2012-20 adopted authorizing the City Manager to execute an Agreement for Cost Sharing of Grant Line Road Pavement Overlay (Mosher Road to Elk Grove Boulevard) with Sacramento County for the Grant Agenda Item No. 8.14: Resolution No. 2012-21 adopted authorizing the City Manager to expend $64,500 from the Tree Preservation Fund for City of Elk Grove Agenda Item No. 8.15: Resolution No. 2012-22 adopted authorizing the City Manager to execute a contract with EMCOR Services of Rancho Cordova to service and repair City facility Heating, Ventilation and Air Conditioning (HVAC) systems, with an option of one, two-year extension, in an amount not-to-exceed $88,200 Agenda Item No. 8.16: Confirmed Cancellation of the April 25, 2012 regular City  Recorder  Line Road Pavement Overlay Project  Greenprint Program tree plantings  Council Meeting PUBLIC HEARINGS Agenda Item No. 9.1:  A public hearing to consider a Tentative Parcel Map  Amendment (EG-06-1158), amending Conditions of Approval 32, 33, 34, 36, and 68 for  the Waterman Park 75 project (EG-09-025)  RECOMMENDATION  Planning Commission recommended (5-0) the following action:  Adopt resolution finding the Waterman Park 75 Condition Amendment project (EG-09- 025) exempt from the California Environmental Quality Act (CEQA) pursuant to the California Code of Regulations, Title 14, Chapter 3 (State CEQA Guidelines) Section 15061(b)(3) (General Rule Exemption), and approving a Tentative Parcel Map Condition Amendment, amending Conditions of Approval 32, 33, 34, 36, and 68 of Waterman Park 75 project EG-06-1158, subject to the findings in the resolution. With the aid of an overhead presentation (filed), Sarah Kirchgessner, Senior Planner, provided an overview of the staff report and recommendation. Ms. Kirchgessner noted  Elk Grove City Council Regular Meeting, February 8, 2012 Page 5of18    a supplemental staff memo (filed) was presented for consideration recommending minor  changes to Condition of Approval 68G for the project. Mayor Cooper declared the public hearing open.  John Ferguson, project applicant, supported approval of the item, noting that capital infrastructure improvements completed in the area had made the project property much  more viable and the site was garnering interest from potential users.  PUBLIC COMMENT: None.  Mayor Cooper declared the public hearing closed.  Motion: M/S Hume/Detrick to adopt Resolution No. 2012-23 finding the Waterman Park 75 Condition Amendment project (EG-09-025) exempt from the Califoria Environmental Quality Act (CEQA) pursuant to the California Code of Regulations, Title 14, Chapter 3 (State CEQA Guidelines) Section 15061(b)(3) (General Rule Exemption), and approving a Tentative Parcel Map Condition Amendment, amending Conditions of Approval 32, 33, 34, 36, and 68 of Waterman Park 75 project EG-06-1158, subject to the findings in the resolution. The motion passed by the following vote: Ayes: 5;  Noes: 0.  Agenda Item No. 9.2:  A public hearing to consider options presented for an  ordinance regulating the cultivation of medical marijuana in the City of Elk Grove and  introduction of the desired ordinance RECOMMENDATION  Introduce and waive, by substitution of title only, an ordinance adding Elk Grove Municipal Code Chapter 23.83 concerning the cultivation of medical marijuana. With the aid of an overhead presentation (filed), Bryan Noblett, Police Captain, provided an overview of the staff report and recommendation. Options relative to regulation of medical marijuana cultivation were discussed September 2011, with direction provided by the City Council for staff to pursue an ordinance that medical marijuana only be cultivated in an outbuilding in the rear yard of a residence, similar to regulations of the City of Corning. Subsequent staff presentations to the Planning Commission posed options to either cultivate medical marijuana in an outbuilding in the rear yard, or in a small area inside the residence. The Planning Commission recommended (by a 3-2 vote) that medical marijuana only be cultivated inside a residence. For consideration were three versions of the ordinance, the first option was that cultivation could only occur inside the residence, the second option was that cultivation could only occur in a  Elk Grove City Council Regular Meeting, February 8, 2012 Page 6 of18    secure, detached outbuilding in the rear yard, and the third option was that cultivation Captain Noblett noted base provisions that were present in all three variations of the ordinance: 1) only a qualified patient or primary caregiver could engage in cultivation of medical marijuana, 2) the qualified patient or primary caregiver must reside full time on the property, 3) the open, outdoor cultivation of medical marijuana would be prohibited, 4) cultivation would be prohibited in all non-residential zones, 5) cultivation would be prohibited within 1,000 feet of a school, child care center, or public park, 6) growing operation lighting used could not exceed 1,200 watts, 7) use of gas products would be prohibited, 8) ventilation and filtration systems, approved by the Building Official, would be required, 9) an adequate mechanical or electronic security system would be required, 10) sales of medical marijuana was prohibited, 11) medical marijuana cultivation would not be allowed to occur in both the inside of a residence and in a detached structure on a single parcel, 12) cultivation areas would not be accessible to Regarding the ordinance options, Captain Noblett noted that for the option to only allow cultivation inside a residence the area of cultivation could be no larger than 50 square feet, regardless of number of patients or qualified caregivers, and cultivation could not occur in the kitchen, bathroom, or bedrooms inside the residence, nor on any carpeted surface. For the option to allow cultivation only in a detached, secure outbuilding, it required a detached, fully enclosed, secure structure with a complete roof enclosure and supported by connecting walls and a foundation. The structure had to be secured with one or more lockable doors, the structure would be required to be located in the rear yard on a residential parcel with a 10 foot minimum set back requirement from adjacent property lines, the surrounding area would be required to be enclosed by a solid fence at least six feet in height, and any structure used for cultivation required a The permit required a notarized signature of the property owner in support of an application to cultivate medical marijuana. The permit would include the names of any people owning, leasing, occupying, or having charge of the premises where the medical marijuana would be cultivated, and the name of each qualified patient or primary caregiver, along with verification of valid medical recommendations or medical marijuana cards. The permit would be valid for two years, with a two year extension opportunity, and personal information offered in support of the application would be held confidential and used only for the processing of the permit application. The Chief of Police would have the authority to deny an application if determined that issuance would be detrimental to the public health, safety, or welfare, and a fee for processing could be  could occur either inside the residence or an outbuilding.  minors under 18 years of age, and 13) permits would be required.  permit and could not be larger than 120 square feet inside.  established by the Finance Director.  Elk Grove City Council Regular Meeting, February 8, 2012 Page7of18    Captain Noblett noted that the dissenting voters of the 3-2 Planning Commission recommendation opined that the requirements presented appeared sO stringent that the City should merely prohibit any form of medical marijuana cultivation. He noted the Planning Commission recommendation for cultivation inside a residence cited that outbuildings with ventilation and security systems would likely continue to attract notice Police Chief Robert Lehner noted that no statistical evidence existed if cultivation in a residence as opposed to a secure outbuilding reduced the potential for theft. He noted that though a home may provide for improved concealment, it did not necessarily provide for better security as a residence by nature had increased foot traffic and Inr reply to Council Member Detrick, Captain Noblett noted a greenhouse would not qualify as a detached outbuilding, as the definition required a secure structure constructed of solid materials that could not be easily broken through, and had to be  and remain targets of theft.  exposure, as opposed to the limited access of a secure outbuilding.  nontransparent. material.  Mayor Cooper declared the public hearing open.  PUBLIC COMMENT:  Sean Doherty offered that his organization provided a business service to offer cultivation of medical marijuana in a secure industrial building, and requested the City Council consider hearing a presentation of the business plan to permit such a business as an alternative. He supported cultivation of medical marijuana, but noted there were individuals who did not have the ability to cultivate their own medical marijuana, and noted that cultivation in residences, outdoors, or in identifiable outbuildings created safety issues in residential areas of the community. Mr. Doherty believed his proposed business model ensured improved compliance under security and permit standards, centralized operations of where cultivation occurred in the City limits, and had the added benefit to remove cultivation operations out of residential neighborhoods. Robert Faulkner opposed cultivation of marijuana. He believed that ventilation systems utilized could generate noise nuisances, and requested the City Council consider banning the cultivation of medical marijuana, though he recognized from attending prior Planning Commission meetings on the matter that staff had advised that a citywide ban  would likely lead to legal challenge.  Mayor Cooper declared the public hearing closed.  Elk Grove City Council Regular Meeting. February 8, 2012 Page 8of18    Council Member Scherman opposed any form of marijuana cultivation, and believed that allowance of cultivation and a permitting system would exhaust code enforcement resources. She stated numerous citizens had expressed their opposition to any form of marijuana cultivation, and that cultivation and use of marijuana were detractors to Council Members Davis and Detrick voiced support to ban marijuana cultivation, but Council Member Davis believed the City had a legal obligation, based upon state initiatives, to address the issue and put forth an ordinance that would meet state requirements, while providing for the safety of the public. Mr. Davis supported Option 3 Interim City Attorney Jonathan Hobbs noted an outright ban would likely face legal risk, and as many court cases were currently pending, it was not clear that the City could prevail in sustaining a ban of the cultivation of medical marijuana. In reply to concerns raised by Council Member Scherman, Mr. Hobbs noted that it was not expected that excessive additional staff time would be required to enforce any of the proposed forms of the ordinance, and the City had the ability to impose fees to defray costs of any enforcement effort. He noted that by having some form of regulation it provided the City an additional tool to enforce violations of state law and provided the ability to regulate Council Member Detrick supported Option 2 for the outbuilding only. He believed regulations were in place to address associated noise issues related to ventilation systems, as brought up during public comment. Mr. Detrick noted that medical marijuana dispensaries were available to qualified patients at other locations in the Vice Mayor Hume believed an outright ban would violate state law and expose the City to lawsuits. He supported either option for growing in a residence or an outbuilding, and though the outbuilding option could draw increased attention, it provided an improved means of securing a cultivation operation from unintended contact, and provided a venue outside of the limited spaces that remained in a home identified in the regulations on residences. Mr. Hume expressed interest in hearing the business model offered by Mr. Doherty which offered the possibility to remove marijuana cultivation out of neighborhoods completely, which would address the nuisance factors attempting to be Interim City Attorney Hobbs noted the presented ordinances prohibited cultivation in nonresidential areas, including industrial and commercial zones, and if the City Council wished to consider allowing some form of cultivation in industrial areas, that staff would require time to evaluate such a proposal and would return at a future date with a  quality of life factors of the community.  of allowing cultivation in either a residence or an outbuilding.  and impose sanctions and penalties to cease illegal growing operations.  region, outside of the City limits.  mitigated through the ordinance proposals.  recommendation.  Elk Grove City Council Regular Meeting, February 8, 2012 Page9 9of18    Council Member Davis opposed discussion of commercializing marijuana cultivation. Mayor Cooper agreed that an outright of ban medical marijuana cultivation would invite litigation. He supported the use of medical marijuana by patients that were legally qualified, but did not believe cultivation or use of medical marijuana should in any way infringe on the rights of others. He believed any site for cultivation would continue to increase risks of criminal behavior, he noted his opposition to any kind of commercialization of marijuana, and agreed that qualified users could seek such Motion: M/S Detrick introduce and waive the full reading, by substitution of title only, an ordinance adding Elk Grove Municipal Code Chapter 23.83 concerning the cultivation of medical marijuana utilizing Option 2 allowing outbuildings only. The Motion: M/S Davis/Hume to introduce and waive the full reading, by substitution of title only, Ordinance No. 3-2012 adding Elk Grove Municipal Code Chapter 23.83 concerning the cultivation of medical marijuana utilizing Option 3 allowing cultivation in either a residential building or an outbuilding. The motion passed by the following  commercial markets in other jurisdictions, but not the City of Elk Grove.  motion FAILED for a lack of a second.  vote: Ayes: 3; Noes: 2 (Detrick, Scherman).  REGULAR AGENDA ACTION TEMS/RECOAMENDATONS  Agenda Item No. 10.1: Receive the Fiscal Year 2011-12 mid-year budget review and adopt resolution amending the Fiscal Year 2011-12 Budget and Fiscal Year 2011-16  Capital Improvement Program RECOMMENDATION: Capital Improvement Program.  Adopt resolution amending the Fiscal Year 2011-12 Budget and Fiscal Year 2011-16 Katy Baumbach, Interim Director of Finance and Administrative Services, provided an overview of the staff report and recommendation. Ms. Baumbach reviewed the overall financial condition of the City at the midpoint of the fiscal year, noting that revenues were within a 1% variance of projections, and General Fund expenditures to date were at 48%, both within expected projections being at halfway through the fiscal year. Ms. Baumbach provided further detail regarding revenues, noting a small net positive change was seen. Sales tax was projected at a 9% increase over the prior year, and receipts to date were in line with that projection. Property tax revenue was predicted to continue to decline with the Sacramento County Assessor indicating negative growth in this sector. The Utility User Tax, as approved by voters in 2010 to modemize the tax ordinance, saw revenues outpacing projections. Intergovermental revenues, in which  Elk Grove City Council Regular Meeting, February 8, 2012 Page 10of18    the state's budget for the current fiscal year included shifting Vehicle License Fees from cities to fund public safety grant funding, would result in not realizing $535,000 of City budgeted funds from that particular revenue source, and as the City also received property taxes from the state in lieu of additional Vehicle License Fees, and assessed values were down statewide, those property taxes received in lieu of Vehicle License Fees would also be short of projections. She noted that at the December 14, 2011 meeting the City Council requested a cost estimate for providing in-kind public works and police support to the Running of the Elk half marathon event. Staff estimated that support would be $7,500, which could be accommodated in the current fiscal year budget. She also noted that over the past two years the General Fund loaned $750,000 to the Redevelopment Fund to commence work on forming a redevelopment agency. Since that time, the state budget eliminated redevelopment, and remaining funds in the Redevelopment Fund were proposed to be transferred back to the General Fund, as that loan was General Fund monies and not tax increment funding. The resolution indicated a number of adjustments based on activity to date, with all of the proposed adjustments to General Fund revenues it was projected that the City was at a net  positive of $200,000 at the mid-year review.  PUBLIC COMMENT:  Lynn Wheat voiced appreciation for being within budget projections, and for evaluating redevelopment funding and returning loaned funds back into the General Fund. Vice Mayor Hume stated, in relation to the funding request for in-kind services for the Running of the Elk half marathon event, that he believed there was a process issue to be resolved, and that such a request should have been submitted at the same time other applications were due. He noted that he supported the event, but given that the beneficiary of the event was a foundation that Council Member Davis both founded and served as a current board member, that the request should have come through the Council Member Davis supported the policy discussion to address the process for in- kind support services requests going forward, but noted that as the formation of the event came together rapidly, and the event date approached prior to consideration of the regular cycle of community grant application submittals, that in this instance he put forward the request for the item to be reviewed during the mid-year budget review. Mr. Davis believed the event was in line with City goals, and the in-kind services would ensure for the safety of event participants. He noted that he and the Youth Sports Foundation Board were all volunteers, and none who served on the board received any  proper channels more directly.  form of compensation.  Elk Grove City Council Regular Meeting, February 8, 2012 Page 11of1 18    Council Member Detrick noted that preliminary five year projections showed that the City could go below the 15% minimum reserve level. He voiced support for the event but did not agree with authorizing the requested amount of $7,500 for in-kind support services, noting that he had been involved in numerous athletic events hosted in the City in the past, and because of his personal involvement in such events, he had never Council Member Scherman voiced support for the event and authorizing the requested funding, but raised concern over the amount of $7,500 requested, noting that allocated funds could negatively impact the ability to maintain other City programs, citing a recent example of the Domestic Violence Unit in the police department which was under Mayor Cooper noted a request had been submitted earlier in the year to host a similar, marathon fundraising event, but the event coordinators abandoned the project as support services required by the City were cost prohibitive. He believed a policy was needed to establish an equitable system to apply and review requests for in-kind Vice Mayor Hume recognized that the creation of the event, and timing in relation to the regular submittal process for the budget, placed time constraints in this situation. He believed the policy should be established to identify the process for participating events and organizations, and to conduct review at the time of the budget implementation. He believed that as this currently was the mid-year budget review, and revenues were projected to come in excess of anticipation, he was amenable to supporting the event but was cautious that it not set a precedent for future events to be submitted outside of Motion: M/S Hume/Scherman to adopt Resolution No. 2012-24 amending the Fiscal Year 2011-12 Budget and Fiscal Year 2011-16 Capital improvement Program including in-kind police and public works services in the amount of $7,500 for the April 1, 2012 "Running of the Elk" half marathon event. The motion passed by the following vote: Agenda Item No. 10.2: Receive update on the East Stockton Boulevard Sound Wall Renovation Project (WCE001) and adopt a resolution approving the Project Description and amending the Fiscal Year 2011-12 Budget and Fiscal Years 2011-12 through 2015- 16 Capital Improvement Program for the East Stockton Boulevard Sound Wall  requested financial aid ori in-kind support from the City.  consideration to be discontinued due to lack of funding.  services for such community events.  the process that would be established by policy.  Ayes: 4; Noes: 1 (Detrick).  Renovation Project RECOMMENDATION:  Adopt resolution approving the Project Description and amending the Fiscal Year 2011- 12 Budget and Fiscal Years 2011-12 through 2015-16 Capital Improvement Program for  the East Stockton Boulevard Sound Wall Renovation Project.  Elk Grove City Council Regular Meeting, February 8, 2012 Page 12of18    With the aid of an overhead presentation (filed), Rick Carter, Capital Program Manager, provided an overview of the staff report and recommendation. He displayed photos of the conditions of the East Stockton Sound Wall, showing its composition as a conglomeration of materials, noting numerous cypress trees were planted in its vicinity, and noting the state of disrepair of the wall, surrounding pavement and sidewalk. Outreach meetings were held in November and December 2011 and the proposed project scope was to replace the section on East Stockton Boulevard, it did not include as section of wall on Via Alta Way that residents had requested to be replaced, nor did it include a small section at the south end of the project that came in proximity to multiple private lands. He displayed a cross section of the proposed 10 foot block wall, noting masonry construction was the most crash worthy and was low to no cost for maintenance, though the possibility to use precast concrete panels was under consideration. The new wall would be built three feet into city property, except at the ends where the wall would be curved and joined to the existing fencing to reduce any gaps. The existing wall would be left in place, remaining on private property, negating any need to address removal of the wall or mitigation of the existing trees. The project scope included sidewalk, curb, gutter and street replacement, bringing the site into compliance with Americans with Disabilities Act (ADA) requirements, roadway striping, and installation of signage and street lights. A concern raised by the public was that the proposed project would create a three to five foot space between the new and existing wall, and he noted the walls would be closed off sO the general public would not be able to access the space. Numerous residents adjacent to the project wanted the wall and trees removed, and expressed a desire to be issued encroachment permits to utilize the land between their property and the new wall, whether or not the old wall was removed. The project would serve the public purpose of providing an adequate sound wall to accommodate the roadway changes proposed under the Whitelock Interchange Project identified in the General Plan. Potential funding through CalTrans had been discussed, but as no projects were planned by CalTrans for the segment of State Route 99 near the project site, it was unlikely funds from CalTrans could be accessed. Mr. Carter displayed renderings of the proposed project, and provided examples of aesthetic alternatives, noting that additional artistic features, plantings, or alternate materials such as precast concrete panels, would increase project costs, and such alternatives could be reviewed by the Committee for the Arts. The project funding proposal under the current CIP anticipated utilizing Gas Tax and Community Development Block Grant (CBDG) funding, but the project recently was determined to not be eligible for CDBG funding as the area was not an eligible neighborhood as determined by U.S. Department of Housing and Urban Development (HUD). Staff continued to evaluate replacement funding source options, but noted there was the potential of the area becoming eligible for CDBG funds as HUD was reviewing the maps identifying eligible neighborhoods. Project funding in the Capital Improvement Program (CIP) budgeted $180,000 for engineering, with $100,000 authorized in the current year, and $80,000 authorized for the following year. Staff proposed use of $460,000 in Roadway  Elk Grove City Council Regular Meeting, February 8,2 2012 Page 13of18    Fee funds for construction and engineering costs for the wall, and $990,000 in Gas Tax funds (a $210,000 reduction from the current CIP) for remaining aspects of the project, noting the planned accelerated funding from other sources would maintain funding of all CIP projects for the next fiscal year. The projected start of construction was August Council Member Scherman noted that residents in the area had voiced preference for a wall that matched the appearance of the masonry wall by The Oaks mobile home park.  2012 with the proposed accelerated funding plan.  PUBLIC COMMENT: None.  Council Member Detrick appreciated the merits and design of the project, but questioned the process that led the City to pay the full costs for construction. He believed the original installation by private development on private property was poor, questioned the process that led to the decision to move the project into the public right- of-way, and, as he believed residents adjacent to the project would realize property Assistant City Manager Rebecca Craig noted an assessment district was not recently discussed with neighboring residents, but during past outreach efforts consensus could not be found amongst the properties affected to voluntarily create an assessment district. Such an assessment could not be enforced by the City for the construction of the wall, though it was possible to look into a program for maintenance of the wall. Housing Program Manager Sarah Bontrager noted that HUD would likely review their maps with a target for release in the 2013-14 fiscal year. In reference to commencing the project and then seeking reimbursement, she noted that CDBG funding could not be Vice Mayor Hume voiced his support of the project citing public benefits of sound attenuation for the future Whitelock interchange, public safety issues related to panels dislodging from the current wall and becoming hazardous debris, improving quality of life and economic development aspects by improving site aesthetics, and correcting an error of having allowed the previously installed, poor condition wall to be originally permitted. He believed that any property value benefits would be negligible. He held interest in seeing precast panel options, though stated he understood the communicated desire for continuity in matching the neighboring property masonry wall. Mr. Hume noted that prior attempts had failed to seek homeowner consensus to address the wall, and it was appropriate for the City to advance a project to remove the possibility of losing consensus again by moving the project out of private land interests.  value benefits, felt that an assessment district should be considered.  utilized to reimburse costs.  Elk Grove City Council Regular Meeting. February 8. 2012 Page 14of18    Public Works Director Shepard noted that with guidance to match the aesthetics of the wall adjacent to The Oaks mobile home park, staff could proceed with advertising a bid to receive options for either precast panels or masonry to compare the two approaches Council Member Davis requested exploration of artistic overlay options, and to seek Council Member Scherman supported the project, noting the existing wall had been problematic since its instalation, having deteriorated rapidly contributing to visual blight and becoming a hazard to public safety. She believed the project would improve the quality of life for all residents of the City and would bring the area of the roadway into Council Member Detrick stated he would not support the project unless an assessment district, or similar means of funding, was established for residences whose property Motion: M/S Scherman/Hume to adopt Resolution No. 2012-25 approving the Project Description and amending the Fiscal Year 2011-12 Budget and Fiscal Years 2011-12 through 2015-16 Capital Improvement Program for the East Stockton Boulevard Sound Wall Renovation Project. The motion passed by the following vote: Agenda Item No. 10.3: Evaluate and provide direction of economic incentive  inr meeting the design criteria of the project. regional public art funding sources.  ADA compliance.  values would benefit from installation of the project.  Ayes: 4; Noes: 1 (Detrick).  discussions with Laguna Springs Corporate Center Phase IIL LLC  RECOMMENDATION:  Evaluate and provide direction concerning continued economic incentive discussions Rebecca Craig, Assistant City Manager, provided an overview of the staff report and recommendation. Ms. Craig noted that in September 2011 direction was given to continue discussions for identifying additional economic incentives with LSCC. Discussions with LSCC had continued and options explored were summarized, at this time staff sought if there were any other ideas the City Council wanted to pursue further,  with Laguna Springs Corporate Center Phase IIL LLC (LSCC).  or if discussions to date were sufficient.  PUBLIC COMMENT:  Thad Johnson, representing the project owner and developer, requested the dialogue remain open to explore options. He noted the project continued to move forward and had passed several critical thresholds ahead of schedule, and in regards to any future  Elk Grove City Council Regular Meeting, February 8, 2012 Page 15 of18    discussions, he noted the focus would be for programs that would be accompanied with adequate securities and proper terms to ensure the City was receiving returns or could access funds as required in a timely manner prior to any considered pay out of funds. Lynn Wheat raised concern that utilizing City funds directly for economic incentive programs could establish an expectation by businesses to receive incentive offerings to locate in Elk Grove. She agreed with the importance of attracting high quality job By consensus the City Council directed staff to continue discussion of options for consideration as presented by the applicant, seeking options equitable to the City that did not require additional cash outlay, and to not exhaust resources researching option Agenda Item No. 10.4: Consider resolution authorizing the City Manager to negotiate and enter into a contract with Sacramento Self-Help Housing for the ownership and  centers to the City, but not at the expense of exhausting revenue funds.  proposals.  management of a transitional housing project  RECOMMENDATION: housing project.  Adopt resolution authorizing the City Manager to negotiate and enter into a contract with Sacramento Self-Help Housing for the ownership and management of a transitional  The verbal staff report was waived. PUBLIC COMMENT: None.  Motion: M/S Hume/Scherman to adopt Resolution No. 2012-26 authorizing the City Manager to negotiate and enter into a contract with Sacramento Self-Help Housing for the ownership and management of a transitional housing project. The motion passed Agenda Item No. 10.5: Review of economic development options regarding waste to energy projects and a solid waste planning strategy and authorize City staff to send five- year notice letters to commercial waste haulers notifying them of the City's reservation  by the following vote: Ayes: 5; Noes: 0.  of right to an exclusive solid waste handling service  RECOMMENDATION:  Receive a presentation on economic development options regarding waste to energy projects and a solid waste planning strategy and authorize City staff to notify all  Elk Grove City Council Regular Meeting. February 8, 2012 Page 16of18    commercial haulers operating in the City of Elk Grove, by a five-year notice letter, that With the aid of an overhead presentation (filed), Randy Starbuck, Economic Development Director, and Cedar Kehoe, Integrated Waste Program Manager, provided an overview of the staff report and recommendation. Mr. Starbuck provided an overview of economic development options that could be available at the remaining 12 acres of the Special Waste Collection Center site, noting waste to energy facility opportunities were expanding, citing examples of biological, chemical, and thermal processing plants in which the conversion of waste to some form of recycled by-product or fuel were conducted. He noted the importance in having a transfer station near such facilities, and recommended that the land adjacent to the Special Waste Collection Center site be held in reserve while staff evaluated waste to energy development Ms. Kehoe stated the Transfer Station Master Plan identified the first priority of building the Special Waste Collection Center, and in the future the City could require solid waste tons to be routed through the Transfer Station Master Plan site, if required infrastructure was built. The ability to direct the flow of both residential and commercial tons was required to make waste to energy facilities viable, as currently commercial waste could be sent to any facility in any jurisdiction. To change the current system the City was required to notify haulers, and after a period of five years, could then act on an option to transition to an exclusive solid waste handling service. The City had 17 authorized haulers currently providing service in the City. The same process was conducted by the City in May 2003, giving the five year notice, and in January 2009 the City Council elected to continue the non-exclusive system of commercial solid waste hauling, which also equated that the City did not have control of the final disposal of any of the waste stream. With authorization to send notice, the City would review options in 2017 to consider an exclusive solid waste handling service, creating the ability for the City to direct tons to a potential City owned facility. She provided timeframes of items related to considering an exclusive solid waste handling service, noting the Special Waste Collection Center was expected to be opened April 2013, the residential franchise agreement with Allied Waste would terminate June 2018, and in the interim conversion technology facility options would be evaluated and presented for City Council consideration. She noted that flow control, or the ability of a local agency to direct which facilities waste tons would go, did not necessitate a single preferred hauler. She noted staff would evaluate options, such as franchise agreements, that could allow for multiple haulers, but maintain the ability of the City to maintain flow control. Vice Mayor Hume did not see the need to notice or consider an exclusive arrangement prior to the City having the capability to handle such flow, and questioned the City's ability to construct the facilities needed to direct flow control within five years.  the City reserves the right to an exclusive solid waste handling service.  opportunities.  Elk Grove City Council Regular Meeting, February 8, 2012 Page 17of18    Public Works Director Richard Shepard noted the action to send notice merely preserved the option of the City, and if in 2017 the City was still not in a position to control the flow the decision could be deferred another five years, or revised notices could be sent annually going forward to extend the time by yearly increments.  PUBLIC COMMENT: None.  By consensus the City Council directed that the land adjacent to the Special Waste Collection Center site be held in reserve while staff evaluated waste to energy development opportunities, and authorized staff to notify all commercial haulers operating in the City of Elk Grove, by a five-year notice letter, that the City reserved the  right to an exclusive solid waste handling service.  ADJOURNMENT  With no additional business to conduct, the February 8, 2012 City Council meeting was  adjourned at 9:04 p.m.  PA JABONLINDGRÈN) CITYC CLERK  ATTEST,  A  Elk Grove City Council Regular Meeting, February 8, 2012 Page 18of18