CITY OF ELK GROVE Incorporated July 1, 2000  MINUTES OF THE CITY COUNCIL  REGULAR MEETING Wednesday, June 22, 2011  CALL TO ORDER/ROLL CALL  Mayor Detrick called the regular City Council meeting of June 22, 2011 to order at  6:47 p.m. Present: Absent:  Mayor Detrick, Vice Mayor Cooper, Council Members Davis, Hume and  Scherman. None.  Dan Gougherty led the Pledge of Allegiance.  Mayor Detrick asked that a moment of silence be observed.  APPROVALOF, AGENDA  Motion: M/S Hume/Davis to approve the agenda as presented. The motion passed  by the following vote: Ayes: 5; Noes: 0.  CLOSED SESSION None.  PRESENTATIONS/ANNOUNCEMENTS  4.1 Council Member Scherman and Commercial Integrated Waste Intern Andrew Breece presented the Elk Grove Green Student Scholarships, funded by Allied Waste, to winners Karli McConnell, Zach Bess, and Sara Manlapig.  4.2 Integrated Waste Intern Andrew Breece announced the Earth Week 2011 4th Annual Nike Reuse-A-Shoe Collection Results and gave a presentation recognizing Award Winners Foulks Ranch Elementary, Laguna Creek High School, and for the small school category, Pleasant Grove Elementary.  PUBLIC COMMENT None.  GENERAL ADMINISTRATION INFORMATION  City Manager Laura Gill reviewed the June 22, 2011 Administrative Report (filed).  Elk Grove City Council Regular Meeting, June 22,2011 Page 1of17    COUNCIL COPNEMTB/REPORISINUDUEE AGENDAI ITEMS  Council Member Scherman attended Elk Grove Chamber of Commerce luncheons and ribbon cuttings. She reported the Sacramento Metropolitan Air Quality Management District Board received an update on implementation of the enhanced Sacramento Emergency Clean Air Transportation (SECAT) program, and approved an agreement for an agricultural burn program. She reported the Sacramento Public Library Authority Board reviewed the budget, raising concern that library funding was being evaluated under the City of Sacramento budget, and those facilities may not receive funding traditionally provided by the City of Sacramento. She noted she would return with an update, once more information was available, as some regional libraries were going to see reductions in service hours, and noted the board presented a proclamation in honor of the American Sabor: Latinos in US Popular Music traveling exhibition from the Council Member Davis reported that the Sacramento Area Council of Governments (SACOG) was preparing the updated Metropolitan Transportation Plan (MTP) for 2035, and that he had noted concerns that the draft had not taken into account the City of Elk Grove's efforts to grow job / workforce space, to which SACOG had agreed to support such City initiatives and include the City's plans in the MTP document. Council Member Davis noted the Run 4 Independence event aaPanpenesacn would be Council Member Hume reported the Capital SouthEast Connector Joint Powers Authority Board received a status report on the South Sacramento Habitat Conservation Plan (SSHCP), adopted a budget for the next fiscal year, and adopted a timeline for the comment period for the Programmatic Environmental Impact Report (PEIR), with a goal to adopt the PEIR in August or September. He noted the Sacramento Transportation Authority (STA) Board did not hold a recent meeting, the Sacramento Regional Transit District (RT) Board would meet June 27, and due to a scheduling conflict, he did not attend the Sacramento Regional County Sanitation Board meeting. Mr. Hume requested staff work with representatives in Old Town to mitigate the interface of traffic and public right-of-way concerns to allow American flags to be displayed along the main Vice Mayor Cooper attended the Sacramento Regional County Sanitation Board meeting which discussed holding a Proposition 218 hearing on sewer rate increases, proposed at increasing $2.00 per year through 2015, largely due to provide funding to meet National Pollutant Discharge Elimination System (NPDES) requirements. Mayor Detrick attended an interfaith open house and honors banquet in West Sacramento, attended the Spotlight at the Ranch Barbecue and Blues fundraiser for the Elk Grove Community Foundation scholarship group, attended the Veterans Memorial groundpreaking in Elk Grove Park, and was a participant in the Dancing with the Strauss Festival Celebrity Stars Gala fundraiser. He noted the Sac-Town Gold Rush International Waterski Pro Event was being hosted in Elk Grove at Shortline Lake, that June 24 the Elk Grove Lions Club was holding a fundraiser at the Elk Grove Pavilion, and June 25 would be the third qualifier of the Fittest of Elk Grove competition held at the Sacramento Valley Crossfit at 2703 Elk Grove Boulevard. Mayor Detrick requested  Smithsonian Institution Traveling Exhibition Service.  held June 25, with proceeds going to the Elk Grove Food Bank.  street in Old Town.  Elk Grove City Council Regular Meeting, June: 22,2011 Page 2of17    future consideration to create a multicultural committee to facilitate a multicultural festival, provide education and outreach to the community on multicultural issues, and suggested the committee be comprised of ten members, with two members appointed By consensus the City Council agreed to consider a future item of a Multicultural Committee. Council Member Scherman requested that in the analysis to support an additional committee, and to support a festival, that projected staff support time be evaluated. Council Member Davis suggested a focus of the committee should include general outreach to ethnic groups and neighborhoods within the community. Mayor Detrick requested that the activities of the Youth Commission regarding bullying issues be considered for formalizing as a resolution to submit to the League of California Cities, to which the City Council agreed by consensus. He requested a future agenda item to consider feasibility and grant financing to place portable, or fixed, electronic sign boards, located near freeway entrances and exits, to provide communication regarding public service announcements, such as upcoming meeting Council Member Scherman raised concern of visual blight associated with such signage, based on prior public comment opposing reader board signage projects, and raised concern regarding who would be responsible for updating information on the signs. She noted several resources currently exist in local papers and websites The City Council agreed by consensus to return an item to consider an electronic sign board system, but held concerns regarding visual blight, and costs to implement and  by each Council Member.  dates, events, and emergency alerts.  broadcasting local events.  maintain such a system. CONSENT CALENDAR ITEMS  Motion: M/S Cooper/Hume to approve the Consent Calendar as presented. The  motion passed by the following vote: Ayes: 5; Noes: 0.  Agenda Item No. 8.1: Agenda Item No. 8.2: Agenda Item No. 8.3:  Received April 2011 Treasurer's Report  Approved City Council Meeting Minutes: 1)N May 25, 2011 Received report on City Manager approved purchases and  special meeting; and 2) June 8, 2011 special meeting  contracts authorized by Elk Grove Municipal Code Chapter 3.42 Contracts and  Purchasing, filed through June 15, 2011  Agenda Item No. 8.4: and Bids Agenda Item No. 8.5:  Received report on Requests for Proposals, Qualifications, Ordinance No. 15-2011 adopted amending the City of Elk  Grove Zoning Map from Limited Commercial (LC) to General Commercial (GC) for the  Elk Grove City Council Regular Meeting, June 22,2011 Page30f17    SBH Elk Grove Properties Rezone Project (EG-11-011; Assessor's Parcel Number 125-  0050-001)(Second Reading) Agenda Item No. 8.6: Agenda Item No. 8.7:  Received the 2010 Annual Growth Report  Resolution No. 2011-108 adopted authorizing the City  Manager to execute a three-year contract with three optional one-year extensions with Gilbert Associates, Inc. for Annual Audit Services for an amount not-to-exceed  $397,500 over a six year period Agenda Item No. 8.8:  Resolution No. 2011-109 adopted authorizing the City  Manager to execute a professional services contract with Acclamation Insurance Management Services for claims adjusting and claims administration services for $40,000 per year for six years [for a total not-to-exceed amount of $240,000]  Agenda Item No. 8.9:  Resolution No. 2011-110 adopted accepting the Whitelock  Parkway Landscape and Pedestrian Improvement Project as complete and authorizing the City Engineer to prepare, and the City Clerk to file, the Notice of Completion with the Agenda Item No. 8.10: Resolution No. 2011-111 adopted authorizing the City Manager to execute an agreement with Sacramento County Environmental Management Division (EMD), for mandated regulatory compliance inspections required by the National Pollutant Discharge Elimination System (NPDES) Stormwater Permit for Agenda Item No. 8.11: Resolution No. 2011-112 adopted authorizing the City Manager to execute a construction contract with Biondi Paving, Inc. for the Neighborhood Livability Speed Control Improvement Project (PT0077) in an amount not-to-exceed $65,300 and authorizing the City Engineer to approve change orders in Agenda Item No.8.12: Resolution No. 2011-113 adopted authorizing the City Manager to execute a trails maintenance agreement with the Cosumnes Community Agenda Item No. 8.13: Resolution No. 2011-114 adopted authorizing the City Manager to execute a contract amendment extending the contract termination date with MCE Corporation for a period of up to six months, terminating no later than December 31, 2011 and approving a 10% billing rate increase for three vehicles with no increase in contract authorization necessary; and Resolution No. 2011-115 adopted authorizing the City Manager to execute a contract amendment extending the contract termination date with Republic Electric for a period of up to six months, terminating no later than December 31, 2011 and increasing contract authorization by $151,000 [with total compensation not-to-exceed $5,655,399 for a five and one half year period] Agenda Item No. 8.14: Resolution No. 2011-116 adopted authorizing the City Manager to enter into a master agreement with University Enterprises, Inc. for internship services not-to-exceed budgeted authority and executed by task order  Sacramento County Recorder  a period of four years  an amount not-to-exceed $13,100  Services District  Elk Grove City Council Regular Meeting, June: 22,2011 Page 40f17    Agenda Item No. 8.15: Resolution No. 2011-117 adopted authorizing the City Manager to enter into a master agreement with AppleOne Temporary Staffing; and Resolution No. 2011-118 adopted authorizing the City Manager to enter into a master agreement with Fujitani Consulting, Inc., both for temporary staffing services not-to- Agenda Item No. 8.16: Resolution No. 2011-119 adopted authorizing the City Manager to exercise a two-year contract extension with Foothill Transcription Company, Inc. for police transcription services in an amount not-to-exceed $120,000 [for a total Agenda Item No. 8.17: Resolution No. 2011-120 adopted authorizing the City Manager to ratify the disbursement of funds with Phoenix Group Information Systems in the amount of $81,000 and execute an amendment to the parking citation processing contract with Phoenix Group Information Systems, extending the contract for two years and authorizing an expenditure of funds not-to-exceed $125,000 [for a total  exceed budgeted authority and executed by task order only  compensation not-to-exceed $300,000 over four years]  compensation amount not-to-exceed. $236,000]  PUBLIC HEARINGS Agenda Item No. 9.1:  A public hearing to consider: A) adoption of resolutions  calling a special election and declaring results of the special election for annexation to Community Facilities District No. 2006-1 (Maintenance Services) and introduction of an ordinance levying and apportioning the special tax to the annexing area (Annexation No. 19); B) adoption of resolutions calling a special election and declaring results of the special election for annexation to Community Façilities District No. 2003-2 (Police Services) and introduction of an ordinance levying and apportioning the special tax to the annexing area (Annexation No. 19); and C) adoption of resolution determining to levy street maintenance assessments for certain properties in the Eastern Area which represents Annexation No. 15 into Street Maintenance District No. 1 - Zone 3D  RECOMMENDATION  A-1) Adopt resolution calling a special election to submit the question of levying a secial tax within the area proposed to be annexed to Community Facilities District No. 2006-1 (Maintenance Services) to the qualified electors; A-2) (Following tabulation and certification of ballot results by the City Clerk) Adopt resolution declaring the results of the special election held on June 22, 2011 for the nineteenth annexation to Community Facilities District No. 2006-1 A-3) Introduce and waive the full reading, by substitution of title only, an ordinance levying and apportioning the special tax in territory annexed to Community Facilities District No. 2006-1 (Maintenance Services) Annexation No. 19; AND B-1) Adopt resolution calling a special election to submit the question of levying a special tax within the area proposed to be annexed to Community Facilities B-2) (Following tabulation and certification of ballot results by the City Clerk) Adopt resolution declaring the results of the special election held on June 22, 2011 for  (Maintenance Services); and  District No. 2003-2 (Police Services) to the qualified electors;  Elk Grove City Council Regular Meeting, June 22, 2011 Page 5of1 17    the nineteenth annexation to Community Facilities District No. 2003-2 (Police B-3) Introduce and waive the full reading, by substitution of title only, an ordinance levying and apportioning the special tax in territory annexed to Community Facilities District No. 2003-2 (Police Services) Annexation No. 19; AND C) Adopt resolution determining to levy assessments in Street Maintenance District Jason Lindgren, City Clerk, provided an overview of the staff report and Mayor Detrick declared the public hearing open for Community Facilities District No.  Services); and  No. 1-2 Zone 3D (Annexation 15).  recommendation.  2006-1 (Maintenance Services) Annexation No. 19.  PUBLIC COMMENT: None.  Mayor Detrick declared the public hearing closed.  Motion A-1: M/S Hume/Davis to adopt Resolution No. 2011-121 calling a special election to submit the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2006-1 (Maintenance Services) to the qualified electors. The motion passed by the following vote: Ayes: 5; Noes: 0. City Clerk Lindgren announced of two possible votes, two affirmative votes were cast authorizing the City of Elk Grove to levy a special tax at the rate apportioned and described. The measure passed with more than two-thirds of all votes cast in the election in favor of the measure. A resolution declaring the results of the special Motion A-2: M/S Hume/Davis to adopt Resolution No. 2011-122 declaring the results of the special election held on June 22, 2011 for the nineteenth annexation to Community Facilities District No. 2006-1 (Maintenance Services). The motion passed Motion A-3: M/S Hume/Scherman to introduce and waive the full reading, by substitution of title only, Ordinance No. 16-2011 levying and apportioning the special tax in territory annexed to Community Facilities District No. 2006-1 (Maintenance Services) Annexation No. 19. The motion passed by the following vote: Ayes: 5; Mayor Detrick declared the public hearing open for Community Facilities District No.  election was available for Council consideration.  by the following vote: Ayes: 5; Noes: 0.  Noes: 0.  2003-2 (Police Services) Annexation No. 19.  PUBLIC COMMENT: None.  Mayor Detrick declared the public hearing closed.  Elk Grove City Council Regular Meeting. June 22, 2011 Page 6of17    Motion B-1: M/S Scherman/Davis to adopt Resolution No. 2011-123 calling a special election to submit the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2003-2 (Police Services) to the qualified electors. The motion passed by the following vote: Ayes: 5; Noes: 0. City Clerk Lindgren announced of two possible votes, two affirmative votes were cast authorizing the City of Elk Grove to levy a special tax at the rate apportioned and described. The measure passed with more than two-thirds of all votes cast in the election in favor of the measure. A resolution declaring the results of the special Motion B-2: M/S Scherman/Davis to adopt Resolution No. 2011-124 declaring the results of the special election held on June 22, 2011 for the nineteenth annexation to Community Facilities District No. 2003-2 (Police Services). The motion passed by the Motion B-3: M/S Scherman/Davis to introduce and waive the full reading, by substitution of title only, Ordinance No. 17-2011 levying and apportioning the special tax in territory annexed to Community Facilities District No. 2003-2 (Police Services) Annexation No. 19. The motion passed by the following vote: Ayes: 5; Noes: 0. Mayor Detrick declared the public hearing open for Street Maintenance District No. 1-  election was available for Council consideration.  following vote: Ayes: 5; Noes: 0.  Zone 3D (Eastern Area) Annexation No. 15.  PUBLIC COMMENT: None.  Mayor Detrick declared the public hearing closed.  City Clerk Lindgren noted there was no majority protest. Of two possible votes, two affirmative votes were returned. The ballot approved the proposed assessment and the proposed inflation adjustment limit described for the parcels identified in the ballot. A resolution determining to levy assessments in the district was available for Council Motion C: M/S Hume/Davis to adopt Resolution No. 2011-125 determining to levy assessments in Street Maintenance District No. 1 - Zone 3D (Annexation 15). The  consideration.  motion passed by the following vote: Ayes: 5; Noes: 0.  Agenda Item No. 9.2:  A continued public hearing (from May 25, 2011) to consider  an extension to the existing approvals for the previously approved Vineyard at Madeira Shopping Center Project located at the southeast corner of Bruceville Road and  Whitelock Parkway (EG-11-016; APNs 132-2170-002 through 006)  RECOMMENDATION  Staff recommends that the City Council grant the Applicant's request for a continuance.  Elk Grove City Council Regular Meeting, June 22,2011 Page7of17    Taro Echiburu, Planning Director, provided an overview of the staff report and recommendation, noting the applicant had submitted a request to continue Kim Whitney, speaking on behalf of Taylor Village Investments, stated that, based on the previous meeting where items of concern and sensitivity were voiced by Council Members, it was realized after that time in meeting with staff that additional time should be taken to address those items of concern and to conduct public outreach. To date, he had been awaiting confirmation and direction from the property owners to coordinate The City Council recognized a high level of community interest regarding the impacts of the project, and believed outreach and input from the community was needed. Council Member Davis believed substantive discussion had occurred amongst the community to date, and would provide a starting point to continue discussion. He observed there were residents who believed commitments were established, based on statements made by representative predecessors of the project. Mr. Davis requested clarification on implications if the City Council did not agree to the project extension City Attorney Susan Cochran stated if the Conditional Use Permit (CUP) was not extended, there would be no approvals for the project as submitted under the CUP. She stated the lawsuit related to the project was not affected by the status of the CUP (extension or not), as the court had ruled on a Walmart proposal submitted subsequent to the CUP approvals, and the court found that the proposal could not benefit from the existing CUP approvals. She noted project applicant representatives had stated that an extension may not be necessary, as they believed substantial work had been completed to date in reliance on the CUP, and an extension was not necessary based on their interpretation of the Elk Grove Municipal Code. She explained that the deadline to file for the extension was June 25, and since the recipient of the CUP had applied in a timely manner for the extension, the CUP would continue to be valid until the City Council took final action on the request for the extension. She clarified statements of the court, in relationship to the lawsuit, that the City was not able to find the Walmart proposal substantially similar to the former, larger Target store considered under the original CUP approvals, because the approval for the larger Target store did not address any square footage of grocery. The court said a comparison could not be made tor make a determination, and the court directed Walmart to return to the City for further processing. That further processing would occur whenever Walmart submitted a new application or proposal. She noted the court did not reach issues related to design review or whether California Environmental Quality Act (CEQA) review would be required for the approval. She confirmed the City Council had the right within the CUP to amend conditions of approval during review of the CUP extension. Ms. Cochran clarified that the matter of the existing CUP extension was required to come before the Council for consideration and action, but she identified that since the ability to submit a new appliçation remained as an option for Walmart, and without certainty of the kind proposal that may be submitted, there existed scenarios in which an alternate store proposal, separate of this currently existing CUP, may not require further review before  consideration of this item to the regular meeting of. July 27, 2011.  and conduct public outreach.  request, and how current lawsuits interacted with the project.  the City Council.  Elk Grove City Council Regular Meeting, June 22,2011 Page 80f17    Planning Director Echiburu noted that under recent changes to Elk Grove Municipal Code Title 23 (the Zoning Code"), changes in definitions of grocery, retail and "big box" stores created scenarios in which a project proposal could be by-right under the new code, as opposed to requiring a CUP, based on the proposed use and total square footage of the store. He noted that for uses under square footage thresholds that did not require a CUP would continue to require the discretionary approval action of design Mr. Whitney noted the existing Vineyard at Madeira Shopping Center Project contained approvals intended as a unified project, where the existing CUP and design review related to the entire shopping center, and not only the anchor store. He requested time for Walmart to return with a proposal for a building format that was more consistent with the original approvals under the CUP, and reiterated the request for further time to address all issues surrounding the project in furtherance of extending the CUP. He noted that if the anchor component was complicating the extension, that separate consideration for the remaining buildings in the shopping center from the anchor store would be beneficial in preserving the entitlements for the other buildings in the shopping center, but that as a whole, the economic viability of the project was dependent on all aspects of the project, both the anchor store and surrounding shopping center buildings, Inr reply to Council Member Hume, City Attomey Cochran noted the threshold for a "big box" store requiring a CUP was 100,000 square feet under the recent changes to the Zoning Code; for stores under the 100,000 square foot threshold, depending on the composition of goods sold at the store, a CUP was not necessarily a requirement, and grocery uses under the threshold were by-right. A proposal under the square footage threshold, submitted after the new code changes became effective, would not necessarily require a CUP for approval, but any proposal would have an associated design review. Ms. Cochran believed design review was limited in the ability for the City too condition a project. In particular, she noted the neighboring citizens' concerns over limited hours of operation, noting a CUP could address such a condition, but a design review could not. As the City had not adopted any alternate citywide regulations concerning hours of operation, a by-right store under 100,000 square feet could not be  review.  moving forward.  conditioned to limit hours of operation. Mayor Detrick declared the public hearing open.  PUBLIC COMMENT:  Brett Jolley, attorney representing the Friends of Madiera, noted concurrence with the request for continuance of the item to conduct public outreach. Mr. Jolley raised concern over discussion of the Zoning Code changes, as language modifying the definitions of grocery store and retail discount stores was creating a situation where a by-right entitlement would be created that similarly matched the Walmart project proposal, recently reviewed and denied by the court. He believed the Walmart application for a proposed store under 100,000 square feet was deliberate in order to not be considered a retail discount store requiring a conditional use permit, and sought  designation as a grocery store to allow being permitted by-right.  Elk Grove City Council Regular Meeting, June 22,2 2011 Page 90f17    Inr reply to Council Member Davis, City Attorney Cochran addressed the definition term of grocery store proposed under recent amendments to the Zoning Code. The changes introduced regarded establishing store size between 15,001 and 99,999 square feet, and requiring that more than 10% of the total floor area be devoted to non-taxable goods. Percentage thresholds in the amount of 10% in the new definitions were established to bring consistency in the Zoning Code, as numerous definitions, originating from the original 2007 "big box t ordinance, utilized a 10% threshold in varying capacities to describe minimum or maximum requirements of non-taxable goods offered as related to composition of floor space usage. Ms. Cochran noted the original and current grocery store definitions referenced that a "majority" of the floor area open to the public be occupied by food products, but that the term "majority" was not defined, only the restriction that more than 10% of the total floor area be devoted to non-taxable Council Member Hume observed that reference to non-taxable goods was different from Council Member Davis believed the term "majority" in the definitions was intended that a grocery store be defined with a 50% requirement of floor space utilized for food or grocery products, and that the currently stated 10% threshold, only for non-taxable goods, was not adequate in defining a grocery store. He stated he was uncomfortable with having definitional terms inserted into the Zoning Code in apparent response to a lawsuit, and believed the recent definition changes should be rescinded and revised. After Council deliberation, direction was given to return discussion to review recent changes in the Zoning Code regarding definitions of discount retail stores and grocery stores, and to provide details on when changes were introduced in the process of Mr. Jolly believed that if the City Council wanted to retain its ability to review and add conditions to any proposal regarding the project site, an ordinance amendment would be necessary to change the Zoning Code definitions that were soon to become Motion: M/S Hume/Davis to continue Item 9.2 to the regular City Council meeting of July 27, 2011. The motion passed by the following vote: Ayes: 5; Noes: 0. Note: see comments after Item 10.3n relating to staff request to hold a special meeting.  goods.  referencing food or grocery products.  review of the Zoning Code regarding these definitions.  effective.  REGULAR AGENDA ACTION ITEMS/REÇOMMENDATIONS  Agenda Item No. 10.1: Provide direction for the formulation of an ordinance regarding  tobacco in our community RECOMMENDATION:  Staff recommends that the City Council receive the report and provide direction regarding the formulation of an ordinance relating to tobacco in our community.  Elk Grove City Council Regular Meeting. June: 22,2011 Page 10of17    Robert Lehner, Chief of Police, provided an overview of the staff report and recommendation. Prior discussion regarding the number of tobacco retailers within a proposed exclusion zone for retail sales had initially identified 30 licensees, but after staff conducted a survey of such uses, over 100 retailers of tobacco were found to exist int the City. The group of businesses identified during the survey were grocery stores, convenience stores, and filling stations, businesses that had their general business license, but not the specific addition of a tobacco sales license (which was being pursued by staff to bring such businesses into compliance). With the expanded number of retail sites, it was recognized that a large number of tobacco retailers were within what would be the proposed exclusion zone. Pursuing a retail exclusion zone would not address the problem that originated the request, namely a tobacco retailer established by-right within the proximity of a conditionally permitted daycare center within the same commercial retail center. Staff offered an option to consider regulating the use of tobacco in proximity to children's facilities, as similarly defined under the sex offender registration ordinance, which would prevent smoking within such defined areas. The violation would not be against a retailer, but rather against the individual who was smoking. Chief Lehner presented an overview of agencies that had adopted similar ordinances restricting secondhand smoke, noting there were several examples that expanded beyond smoking prohibitions within proximity of children's facilities, including smoking prohibitions in most commercial areas, sidewalks adjacent to commercial establishments (implying application to include parking areas), taxi stands, bus stops, areas where people congregate, concession lanes, and common areas of multi-family housing units. Any regulations considered would have related signage requirements, and noted that the broader the prohibition was, the less of a signage requirement would  be necessary to enforce such regulation.  PUBLIC COMMENT: None.  The City Council supported moving forward with an ordinance prohibiting use, defining the prohibited areas similarly to children's facilities as defined in the sex offender registration ordinance, and not applying the exclusion zone to tobacco retail sales. Council Member Davis requested innovative means be explored to fund and post signage. He noted the City of Long Beach had an online secondhand smoke complaint form to assist with identifying problem areas, and noted local organizations such as the Sacramento County Tobacco Control Coalition and Elk Grove Community Connection could serve as resources for collecting regional and state best practices. Mayor Detrick voiced preference for a more restrictive exclusion area.  Inr reply to Council Member Scherman, Chief Lehner noted the City would be enforcing the regulation, in much the same way as nuisance ordinances were enforced. Regarding signage, including that for parks throughout the City, Chief Lehner noted that pursuing a less restrictive ordinance would require more signage, and it was unlikely signage requirements could be applied retroactively. He believed facilities would have an incentive to provide the signage required, as they would then benefit from the ability  of the City to subsequently enforce violations.  Elk Grove City Council Regular Meeting, June: 22,2011 Page 11of17    Agenda Item No. 10.2: Report on the updates recommended for the Affordable Housing Loan Program; recommendation to adopt a resolution for the updates to the Affordable Housing Loan Program Guidelines, and a resolution clarifying the  responsibilities of the. Affordable Housing Loan Committee  RECOMMENDATION:  1) Adopt resolution amending the Affordable Housing Loan Program Guidelines and 2) Adopt resolution authorizing the continuation of the Elk Grove Affordable Housing  authorizing the City Manager to make future amendments; and Loan Committee and amending committee responsibilties.  The verbal staff report was waived. PUBLIC COMMENT: None.  Motion: M/S Cooper/Hume to adopt Resolution No. 2011-126 amending the Affordable Housing Loan Program Guidelines and authorizing the City Manager to make future amendments. The motion passed by the following vote: Ayes: 5; Noes: 0. Motion: M/S Cooper/Hume to adopt Resolution No. 2011-127 authorizing the continuation of the Elk Grove Affordable Housing Loan Committee and amending committee responsibilities. The motion passed by the following vote: Ayes: 5; Agenda Item No. 10.3: Neighborhood Stabilization Program (NSP) Update  Noes: 0.  RECOMMENDATION:  Receive an update regarding the usage and current strategies for expenditure of With the aid of an overhead presentation (filed), Sarah Bontrager, Housing Program Manager, provided an overview of the staff report and recommendation. Ms. Bontrager stated the City received $2.4 million in 2008 to address foreclosures in the City, of the funds $1.6 million was allocated to an acquisition rehabilitation/r resale program (where two developers acquired foreclosed units, fully rehabilitated the units, and proceeded to resell the units at affordable prices to low income families), a portion of funding was used to offer a down payment assistance program, which concluded providing 15 low income households that purchased foreclosed homes an average $36,000 per household in City loan funds, and remaining funds were set aside for administration costs. Itv was estimated that over 900 foreclosed homes existed in the City, with only a third actually placed on the market. For the down payment assistance loans, those The acquisition rehabilitation/resale program was currently active, but facing numerous challenges. The two firms, NeighborWorks and Homes by Towne, had acquired 15 foreclosed homes. Eight homes had completed the rehabilitation work, with two homes sold, three homes pending sale, and three homes currently on the market. Challenges  Neighborhood Stabilization Program (NSP)funds.  would be fully repaid with interest when the homes were sold.  Elk Grove City Council Regular Meeting. June 22,2011 Page 120 of17    faced in the program included that buyers have had difficulty paying closing costs, marketing the units was more challenging than for market rate sales, the current deed restriction discouraged continued interest by many buyers, stricter lending standards equated to challenges for buyers in receiving loan approvals, and fewer tax credits were available. Staff implemented policy changes to address some of challenges, such as providing a 3% closing cost grant for buyers, providing the affordable housing interest list to the firms to conduct targeted marketing to interested parties, classifying moderate-income units into low-income units to further subsidize their pricing, and reducing the length of the deed restrictions from 55 years down to 15 years - the minimum period allowed by the US Department of Housing and Urban Development. When units for the program were priced, the lowest of three determiners was utilized: the total development cost, the affordable price a household eaming the income of the specified range could pay for the unit, or the most common, market value. Most units were sold at full market value or at a slight discount. Prices were reviewed every 30 days at the developer's request to make adjustments to increase the marketability of the units. Ms. Bontrager displayed that in reviewing home valuation methods over the term of the deed restriction of 15 years, market value predominantly dictated resale price. For the five units sold to date, a significant discount from the market value had not been required, and the City's investment in these properties was in excess of $60,000 per unit. Ms. Bontrager recommended that all income received back through the program, monies from home re-sale, be placed back into down payment assistance program, which had a longer return on investment, but would likely receive the full loan amount Inr reply to Council Member Davis, Ms. Bontrager noted the contract with vendors currently set the pricing at the lowest of the three calculations, but with Council direction  back plus interest.  prices on the units could be lowered. PUBLIC COMMENT:  Emily Ford, representing Neighborworks, raised concerns that with the deed restriction buyers were reluctant to purchase at full market value, making the units difficult to market. She also noted very low-income buyers were restricted to resell in the future to another very low-income buyer, but were paying the same priçe for the homes and getting the exact same product as low-income buyers. Ms. Ford requested the distinction between very low and low-income buyers be removed in this instance to allow very low income buyers to sell to the wider pool that also included low income Jeremy Goulart, with Homes by Towne, stated units under the program were on the market from 150 to 200 days before closing escrow, whereas the comparative average was 81 days. When the properties were not sold, the funds became stagnant, diminishing the effectiveness of recycling the funding of the program. He requested consideration to provide lower pricing on the units to take into consideration the deed restriction, and the abundance of options in the affordable housing market for buyers,  buyers.  citing over 165 properties were currently priced under $150,000.  Elk Grove City Council Regular Meeting, June: 22,2 2011 Page 13of17    Inr reply to Council Member Hume, Ms. Bontrager noted the project developers received an approximate 10% of the rehabilitation costs as a fee, which often covered construction oversight, legal and administrative fees, and insurance. Ms. Bontrager clarified that in the re-sale of units, the only restriction was to initially sell to a very low income household, but a unit could be resold later on by that very low-income Inr reply to Council Member Scherman, Ms. Bontrager noted new homeowners were responsible for maintaining the home, but the rehabilitation program was designed to have replaced all major systems, effectively addressing the need for any major replacements for five years, as well as improve the overall condition of the home. She noted the program ensured that buyers of the homes had enough funds in their accounts to address near term, unexpected replacements, and noted the City offered During City Council discussion to consider lowering prices on units that had not yet sold, Ms. Bontrager noted of eight homes placed on the market, five had successfully sold, some with stricter deed restrictions, for the full asking price which was near market value. Pricing for homes was set to review the every 30 days, and developers could request the price be lowered every 15 days. Staff would compare market rates, and if the prices in the area had dropped, staff would drop the price, if no price drop and the Motion: M/S Hume/Scherman to continue the Neighborhood Stabilization Program, and for the acquisition rehabilitation / resale program to authorize up to a 2% below market rate reduction on unit pricing as an initial offering price, and authorize up to a 5% reduction 30 days after request by developers to finalize sale of a unit. The motion Note: in relation to discussion of Item 9.2, staff requested the City Council consider City Attorney Cochran requested, in relation to Item 9.2, consideration of calling a special meeting to consider an ordinance that would place a moratorium on grocery, general retail, and "big box" uses 50,000 square feet in size and larger, until such time as the Council could determine the desired changes to the Zoning Code. The moratorium would be effective for 45 days, and had provisions to be extended up to a maximum of two years. Once action was taken to revise the Zoning Code, the moratorium could be repealed upon the effective date of any implemented changes. By City Council consensus, a special meeting was called for June 24, 2011 at 4:00 City Manager Laura Gill stated review of the language in question of the Zoning Code could occur by the July 13 regular meeting, to then provide changes to present to the Planning Commission for review in August, and return for Council review August 24. Agenda Item No. 10.4: Food Bank Transportation Assistance Pilot Program  household to a household of a different income level.  other rehabilitation loan programs to assist with home maintenance.  unit had not yet sold, staff had discounted price by approximately 2%.  passed by the following vote: Ayes: 5; Noes: 0.  calling a special meeting.  p.m., to be held in the Council Chamber at 8400 Laguna Palms Way.  Elk Grove City Council Regular Meeting. June: 22, 2011 Page 14of17    RECOMMENDATION: Adopt resolution:  1) Finding the Food Bank Transportation Assistance Pilot Program exempt from the California Environmental Quality Act pursuant to Section 15061(b)(3) of Division 6 of Chapter 3 of Title 14 of the Califoria Code of Regulations (State CEQA Guidelines); 2) Establishing the Food Bank Transportation Assistance Pilot Program and authorizing the City Manager to make changes to the Program's policies and procedures as With the aid of an overhead presentation (filed), Sarah Bontrager, Housing Program Manager, provided an overview of the staff report and recommendation. The Homeless Solutions Committee, comprised of local representatives of faith based and non-profit organizations, requested the City consider providing transit passes for the homeless to access services at the Elk Grove Food Bank. She noted that currently faith based and non-profit organizations were providing grocery gift cards to local homeless clients, a practice with no surety as to how those funds were expended. The program proposed transporting homeless individuals to the physical site of the Elk Grove Food Bank, which would consolidate contributing agency efforts to directly provide food and services in one location at a lower cost. Faith based and non-profit organizations that served the homeless population would receive up to five free daily bus passes each month to distribute to program participants. Participants would have to provide demographic information to get the bus pass, and the organizations would submit that information to the City to track participation, and prevent fraud and misuse of the passes. The program was anticipated to distribute 60 passes per month to a dozen organizations, which would equate to an approximate opportunity cost of $4,300, but this was not expected as lost revenue as the riders expected to be using these passes would likely not be current, paying riders of the bus system. The program was proposed as a pilot program, and if successful, consideration would be given to expand the program to serve other identified populations, with funding potentially provided through the Community Development Block Grant (CDBG) or Community Service Grants Programs. In reply to Vice Mayor Cooper, Ms. Bontrager noted the intake sheet captured information on gender, age, how many people lived in the participant's household, and questions inquiring where participants were staying, what their last address was, and how long they had been homeless. The intent of collecting the information was to accurately screen for Elk Grove residents and to aid better design solutions in Council Member Scherman raised conçerns regarding the program: 1) she noted other populations may be better served by such a program, such as students, 2) there may be increased exposure to lawsuits regarding homeless passengers interfacing in the public transit environment, and 3) external agencies may commence directing regional homeless clients to access these resources, subsequently exhausting resources to Ms. Bontrager observed many homeless individuals were familiar with local public transportation networks, and believed the program would not place undue stress on the  and  necessary for effective implementation.  addressing the City's homeless population needs.  serve the local homeless population.  Elk Grove City Council Regular Meeting, June 22,2011 Page 15of17    transit system. Regarding redirection of clients from regional services, the intake sheet requested address verification, and if not in Elk Grove a bus pass would not be issued. Ina addition, the bus pass was only good on the e-tran system. Regarding the population served, staff received feedback both from Sacramento Self-Help Housing and the Food Bank that the homeless population in Elk Grove was not the same as the chronically homeless, but consisted primarily of families. Ms. Bontrager recognized the students issue, acknowledging that providing passes to one population could often lead to another population inquiring about the program, and as a pilot program staff would evaluate how the program worked, establish an operation system, and return with a proposal to utilize CDBG or Community Service Grants funding to subsidize passes for  students or other identified populations.  PUBLIC COMMENT: None.  Motion: M/S Cooper/Hume to adopt Resolution No. 2011-128 1) finding the Food Bank Transportation Assistance Pilot Program exempt from the Califomia Environmental Quality Act pursuant to Section 15061(b)(3) of Division 6 of Chapter 3of Title 14 of the California Code of Regulations (State CEQA Guidelines); and 2)establishing the Food Bank Transportation Assistance Pilot Program and authorizing the City Manager to make changes to the Program's policies and procedures as necessary for effective implementation. The motion passed by the following vote: Agenda Item No. 10.5: Consider appointment of one alternate member to the Historic  Ayes: 5; Noes: 0. Preservation Committee RECOMMENDATION:  Appoint one alternate member to the Historic Preservation Committee.  Jason Lindgren, City Clerk, provided an overview of the staff report and recommendation. A green sheet memo (filed) was distributed to note a third application  which was received just after the deadline, presented for consideration.  PUBLIC COMMENT: None.  Motion: M/S Hume/Detrick to adopt Resolution No. 2011-129 appointing Marie Brown as an alternate member to the Historic Preservation Committee. The motion Agenda Item No. 10.6: Consider representation and review Council appointments to  passed by the following vote: Ayes: 5; Noes: 0. the Sacramento Transportation Authority  RECOMMENDATION: Transportation Authority.  Consider representation and review Council appointments to the Sacramento  Elk Grove City Council Regular Meeting. June 22,2011 Page 16of17    Jason Lindgren, City Clerk, provided an overview of the staff report and recommendation. Mr. Lindgren noted after appointments were made on May 25, there was a conflicting appointment affecting Council Member Scherman's ability to regularly attend meetings of the Sacramento Transportation Authority; she had expressed  interest in continuing to serve as an alternate.  PUBLIC COMMENT: None.  Motion: M/S Hume/Davis to adopt Resolution No. 2011-130 appointing Council Member Davis as a second representative and confirming Council Member Hume as the current representative and Council Member Scherman as the alternate to serve on the Sacramento Transportation Authority Governing Board. The motion passed by the  following vote: Ayes: 5; Noes: 0.  ADJOURNMENT adjourned at 10:01 p.m.  With no additional business to conduct, the June 22, 2011 City Council meeting was  Rp  JASON LINDGREN,CITY CLERK  ATTEST:   M  STEVEN M. DETRICK, MAYOR  Elk Grove City Council Regular Meeting, June 22,2011 Page 17of17