CITY OF ELK GROVE Incorporated July 1, 2000  MINUTES OF THE CITY COUNCIL  REGULAR MEETING Wednesday, June 9, 2010  CALL TO ORDER/ROLL CALL  Mayor Scherman called the regular City Council meeting of June 9, 2010 to order  at 6:06 p.m. Present: Absent:  Mayor Scherman, Vice Mayor Detrick, Council Members Davis and  Hume.  Council Member Cooper (arrived at 6:39 p.m.).  Navera Rehimtoola led the Pledge of Allegiance.  Mayor Scherman asked that a moment of silence be observed.  APPROVAL OF AGENDA  Motion: M/S Hume/Detrick to approve the agenda as presented. The motion passed by the following vote: Ayes: 4; Noes: 0; Absent: 1 (Cooper).  CLOSED SESSION None.  PRESENTATIONS/ANNOUNCEMENTS  4.1 Mayor Scherman presented Tracey M. Hansen, Fire Chief, and John A. Michelini, Deputy Chief - Operations, of the Cosumnes Community Services District 4.2 Council Member Davis presented a Certificate of Appreciation to Donna Stearns in recognition of her service on the Solid Waste Advisory Committee. 4.3 Vice Mayor Detrick presented a Certificate of Recognition to Brian Detrick in recognition of his achievements as a Collegiate Water Ski National All-Star and All- 4.4 Nicole Guttridge, Information Technology (IT) Manager, and Steve Gay, Geographic Information Systems (GIS) Manager presented updates on City online  to residents of the City of Elk Grove.  American  applications.  Elk Grove City Council Regular Meeting, June 9, 2010 Pageiof23    Ms. Guttridge reported that the City offers several online services at www.elgroveclyorg including: online utility billing account access and payments, building permit appointment scheduling and permit status, status of Planning and engineering projects, business license applications, purchase of bus passes, and viewing status of Code Enforcement cases and citations. Current future projects include implementation of electronic plan checking software, called E-Plan, that integrates with the City's enterprise software system that currently supports all Finance and Community Services Department data. The E-Plan software allows simultaneous plan check access for outside agencies to review plans, and creates an online, documented digital work flow to provide applicants access to development process information. In addition to increased access features, the system also includes features such as: plan overlays to view two plans simultaneously and identify differences between two plans, ability to digitally mark plans, provide feedback, and include references, and the capacity to document and time stamp all comments and alterations to improve overall communication about projects. The goals and objectives of implementing E-Plan are to: streamline the review process, clearly communicate between applicants, developers, agencies and City staff, increase accessibility to information on a project, and reduce the amount of hard-copy paper generated to simplify file maintenance. The E-Plan project has been discussed and demonstrated at Industry Working Group meetings and outreach has been conducted to various agencies and developers to receive feedback. The Building Department will be selecting clients in the next few weeks to test the process and training will be provided to participating agencies. GIS Manager Steve Gay noted that in 2009 the City entered into a contract with the Sacramento County GIS Cooperative to provide an online, fully hosted GIS solution, which has resulted in significant time and cost savings, and built on the working relationship with Sacramento County for data sharing. The City now includes information and enhanced access tools to give citizens means to find information about the development activity that's happening in their community such as access locations of planning projects, public works projects, building permits, and business licenses, along with basic details such as permit status, issuance dates, and type of 4.5 With the aid of an overhead presentation (filed), Jessica Shalamunec, Project Ms. Shalamunec reported moving forward with the contractor Stan Tec Architects to develop design concepts for the project. Pursuant to Council direction in March, the scope of work was refined with a request for a design vision for the overall project, focusing architect Zaha Hadid's efforts on the site centerpiece, the main building which is the library museum project. Three alternative layouts are being considered and include the site layout of each building location as well as design schemes for the buildings. The scope of work was also refined to require the project vision to be carried out by others, to not preclude the ability to attract Public I Private  permit issued.  Manager, provided an update on the Civic Center.  Elk Grove City Council Regular Meeting, June 9,2010 Page2of23    Partnerships and other alternative funding mechanisms as the project moves The three alternatives will be presented and reviewed by the community at workshops scheduled for late July or early August. The architecture team will take input from the community workshops and develop the three design alternatives. Those design alternatives would be presented at a subsequent community workshop scheduled for September, brought for City Council consideration in  forward.  October, and final design would be presented in November.  PUBLIC COMMENT  Brandee Howard described an incident that occurred on June 3 between the Elk Grove Police Department and she and her husband. She described that her husband had been cleaning an antique rifle in the back of their garage, and upon crossing the street to have a conversation with a neighbor, seven to 10 police cars pulled up and officers proceeded to frisk her husband. Ms. Howard was not aware oft the activity on the street and, as she entered into her garage, she stated a SWAT Team entered pointing rifles at her, with no explanation, and proceeded to search her garage and car. She noted officers on the scene informed her that the Police Department had received a call stating she had not been seen in two weeks. She visited the police station the next day to request a copy of the search warrant, to which the officer on duty informed her there was no search warrant and none would be required in that situation. Ms. Howard expressed she suffers an extreme level anxiety due to the event. Ms. Howard stated she did not understand the excessive level of response for such a call, believing the entire ordeal was a gross waste of Mayor Scherman requested Police Chief Robert Lehner look into the issues raised  tax dollars and a violation of her and her husband's rights.  by Ms. Howard.  GENERAL ADMINISTRATION INFORMATION COUNCIL COMMENTSFUTURE AGENDAITEMS  City Manager Laura Gill reviewed the June 9, 2010 Administrative Report (filed). Reports on Regional Boards, Commissions, Committees; Travel/Training Expenditures Disclosure (in accordance with Resolution No. 2009-212 and Council Member Davis reported that the Federal Emergency Management Agency (FEMA) was looking to relocate offices to the Sacramento Region, and felt disappointment after reading an article in the Sacramento Business Journal that of all the communities mentioned as potential sites, Elk Grove was excluded. Mr. Davis recognized that the City responded and reached out to FEMA, but requested staff return for consideraton the state office relocation incentive program  Government Code S 53232.3(d):  to include federal agencies.  Elk Grove City Council Regular Meeting, June 9, 2010 Page3of23    Vice Mayor Detrick reported on attending the Time Capsule Preview and the recent First Friday event in Old Town. He noted that a funeral service would be held on June 10 for Marcus Rondez, a young man of the community and family friend of the Detrick family. Vice Mayor Detrick expressed his gratitude with how the community rallied behind the Rondez family, holding a car wash to raise funds to help with the Council Member Hume reported he would be attending the Sacramento Regional Transit District (RT) Board on June 14, and at the Sacramento Transportation Authority (STA) Board there would be discussion of the RT Budget, projected sales tax numbers, and potentially staving off administration costs for agencies that receive funding through STA. He reported that contractors working for the Capital SouthEast Connector Joint Powers Authority Board opened a field office in the Sheldon area to receive input from the public and to conduct outreach and public Mr. Hume addressed recent discussions of the Council regarding ethics investigations, and expressed his hope that the Council and community resolve the issues at hand. He expressed his desire to continue to serve the City, and looked forward to the opportunity to start working better as a legislative body, getting back  funeral expenses.  workshops.  to the business of running the City.  NOTE: Council Member Cooper arrived at 6:39 p.m. Council Member Cooper had no items to report.  Mayor Scherman reported on meeting with the Sacramento County Assessor with the City Manager and Assistant City Manager. She met owners General Growth Properties to discuss the status of the Promenade Mall. She attended the Elk Grove Chamber of Commerce's luncheon, the Time Capsule preview, the WEAVE Board meeting, the Sacramento Employment and Training Agency Board meeting, and the Salvation Army luncheon, along with Council Members Hume and Davis, where Greg Thatch was honored and recognized as an outstanding Mayor Scherman reported speaking at the Elk Grove Cemetery at 8540 Elk Grove Boulevard on Memorial Day, and on that same day, she and her husband planted the 2010 American flags in the ground in front of the Cosumnes Community Services District administration building. She noted having a parking sign corrected for a spelling error that was located in Old Town Elk Grove near the former brewery. Mayor Scherman requested bringing back for discussion consideration of a City  benefactorlsponsor of the year.  employee Economic Development Director.  Elk Grove City Council Regular Meeting, June 9,2010 Page 4of23    Council Member Davis noted that for future discussion of such a position the Council should weigh considerations that: 1) there is a finite amount of money for economic investment, 2) a City employee position can become a long term commitment, and 3) other economic investment approaches, such as the currently funded Elk Grove Economic Development Corporation, were poised to conduct  activities that the City is not able to do. CONSENT CALENDARITEMS  Motion: M/S Detrick/Hume to approve the Consent Calendar as presented. The  motion passed by the following vote: Ayes: 5; Noes: 0.  Agenda Item No. 8.1:  Received Automatic Clearing House Nos. 1430 through  1591 dated May 1, 2010 through May 31, 2010, General Warrant Nos. 53229 through 53791, and Electronic Fund Transfer Nos. 2010137 through 2010150  Agenda Item No.8.2: Minutes Agenda Item No. 8.3:  Approved May 26, 2010 Special City Council Meeting Received report on City Manager approved purchases  and contracts authorized by Elk Grove Municipal Code Chapter 3.42 Contracts and  Purchasing, filed through June 2, 2010  Agenda Item No. 8.4: Qualifications, and Bids Agenda Item No. 8.5: Reading)  Received report on Requests for Proposals, Ordinance No. 13-2010 adopted amending the Elk  Grove Old Town Special Planning Area Design Standards and Guidelines (Second  Agenda Item No. 8.6:  Resolution No. 2010-113 adopted authorizing the City  Manager to execute a construction contract with M & M Electric Co. for the Poppy Ridge Intelligent Transportation Systems Signal Interconnect System Project in the amount of $59,969 and authorizing the City Engineer to approve change orders in  an amount not to exceed $9,000 Agenda Item No. 8.7: $25,000  Resolution No. 2010-114 adopted authorizing an  advance from the General Fund for the Collaborative Market Study in the amount of  PUBLIC HEARINGS Agenda Item No. 9.1:  A public hearing to consider approving a Letter of  Public Convenience and Necessity for a Type 20 (Off-Sale Beer and Wine) alcohol  Elk Grove City Council Regular Meeting, June! 9, 2010 Page5of23    license for Walgreens located at 9180 Franklin Boulevard (Project No. EG-09-066;  APN: 119-0144-005) RECOMMENDATION  Adopt resolution approving a Letter of Public Convenience and Necessity for a Type 20 alcohol license for the Walgreens drug store at 9180 Franklin Boulevard. With the aid of an overhead presentation (filed), Mike Costa, Associate Planner, provided an overview of the staff report and recommendation. A Conditional Use Permit (CUP) to sell beer, wine and alcohol was approved by the Planning Commission in March 2010. The CUP contains specific conditions related to training of employees, limiting single serving sales, specific policies regarding cash register sales, sale and stocking of beverages by under-aged employees, and posting store In reply to Vice Mayor Detrick City Manager Laura Gill noted the Walgreens store City Attorney Susan Cochran replied to Council Member Davis that because this project application had an existing CUP, the City had the ability to impose conditions separate from the Letter of Public Convenience and Necessity (PCN Letter). The difference from the last project application requesting a PCN Letter was that the previous project did not have a CUP, since conditions cannot be placed by the City through the PCN Letter, without a CUP the City had no means to include Council Member Hume inquired how the previous project was not required to have a CUP but the current project did have a CUP requirement, to which Mr. Costa explained the current Project was located in a Limited Commercial (LC) Zone, which required approval of a CUP for the land use entitlement to provide alcohol sales per Interim Planning Director Taro Echiburu explained that currently not all zoning districts require a CUP for alcohol sales, and an option for future consideration, to ensure the City's ability to include conditions on alcohol sales on a forward going basis, would be to apply the requirement of a CUP for all alcohol sales in all zoning Mr. Costa clarified the Walgreens site was built in 2001, and at that time the Walgreens business model did not offer alcohol products as part of their sales. Currently the business model is to bring limited alcohol sales back to a select amount of stores, which triggered application for the CUP, as the store was located  policies near the employee check-in check-out area. website listed the hours of operation from 8 a.m. to 10 p.m.  enforceable conditions on the previous project.  the Zoning Code.  districts.  inal LC Zone, and the current PCN Letter request. Mayor Scherman declared the public hearing open.  Elk Grove City Council Regular Meeting, June 9, 2010 Page 60 of23    PUBLIC COMMENT:  Seth Merewitz, representing Walgreens, explained that offering limited alcohol sales was part of a business roll-out by Walgreens which is taking place nationwide. Walgreens was responding to customer demand and maintaining competition with other stores which provide for a one stop shopping opportunity. He reiterated that Walgreens seeks to have a modest offering of beer and wine, with no alcohol. Inr reply to Mayor Scherman, Mr. Merewitz stated a total of four Walgreens stores in Elk Grove are in process for applying for needed requirements; one was completed through the CUP process, the current project requires a PCN letter in addition to the CUP, and two other locations are scheduled to go before the Planning Commission. Megan Wolfe, representing Kovar's Satori Academy of Martial Arts (Kovar's), read a letter (filed) from Chief Executive Officer David Chamberlain opposing Walgreens request for the PCN letter. Kovar's is located in the same lot as Walgreens, and if approved to sell alcohol, Kovar's believed Walgreens and its parking lot would become a place to buy and consume beer bringing both real and perceived safety issues. The letter identified crimes that had occurred in the area, including that Kovar's itself had been broken into and robbed twice, several cars in the parking lot had been burglarized, and in January 2009 the proposed project Walgreens site Laura Reed opposed Walgreens request for the PCN letter, noting the shopping center area has a history of a high risk for crime, illegal drug use, and loitering. Ms. Reed noted that at least two of the businesses in the shopping center cater to youth, Kovar's and the Stepping Stone Learning Academy preschool, and that the proximity of a smoke shop, combined with the ability to purchase alcohol, could Seth Merewitz replied he was not aware of the concerns raised during public comment and requested the item be continued to allow time to arrange to meet with  was robbed at gunpoint.  potentially add to an already existing problem.  Kovar's and other community residents to address their concerns. Mayor Scherman declared the public hearing closed.  Inr reply to Council Member Hume, Mr. Costa displayed on the presentation map showing that east and southeast of the site are existing alcohol sales at Safeway, CVS Pharmacy, and Bel Air, along with an assortment of restaurants that do on-site consumption sales. Mr. Costa noted the neighboring sites were in different zoning districts, but at the time did not have details on those zoning district designations, Council Member Davis agreed with concerns raised by Kovar's and was reticent to potentially lose a business in the shopping center over the PCN letter approval.  nor when the other stores were established.  Elk Grove City Council Regular Meeting, June 9, 2010 Page7of23    Mr. Davis stated he was not prepared to support the item unless conditions could be Motion: M/S Cooper/Detrick to continue the item to the regular meeting of July 28, 2010. The motion passed by the following vote: Ayes: 5; Noes: 0.  mitigated by' Walgreens with Kovar's and the community.  Agenda Item No. 9.2:  A continued public hearing (May 26, 2010) to consider  an update on the Development of Proposed Service Adjustments to e-tran based on the revised Sacramento Regional Transit Schedule, and e-van services based on conversations with the Disability Advisory Committee, and consider a revised Public  Outreach Schedule RECOMMENDATION  Receive an update regarding the changes implemented by Sacramento Regional Transit to their fixed route and paratransit services, receive an overview regarding the impacts to City transit service, and receive an updated timeline to conduct public With the aid of an overhead presentation (filed), Tiffani Fink, Transit System Manager, provided an overview of the staff report and recommendation. Sacramento Regional Transit District (RT) has undergone significant service adjustments, discontinuing Route 65 for weekend service, and setting a target of an approximate 30% reduction in costs for paratransit services resulting in service cuts across the region. Complimentary paratransit service for certified passengers is a requirement within three-quarters of a mile surrounding a non-commute fixed route under the Americans with Disabilities Act (ADA). These services are provided to certified passengers on a reservation basis. Currently certification is done in partnership with RT, and in continuing discussion the City is exploring the opportunity to take on certification. Certification is determined by a person's disability and their functional ability to access the use of a fixed route system, which has changed over the years as today many fixed-route busses have increased accessibility through low floors, lifts, and additional technology to meet most accessibility needs. The City offers two types of paratransit services. First is the legally required ADA complimentary paratransit service within the city limits to ADA Certified passengers, which has an approximate annual cost of $500,000. The second service offers dial-a-ride services for local seniors and for regional ADA passengers to locations both within the City and to destinations throughout Sacramento County, with an annual cost of approximately $1 million. The current budget shows Transit operating at a deficit, as current service levels exceed operation funding. On aggregate for City e-van service one-third of trips are within City limits, the remaining two-thirds either originate or have a destination outside of the City limits. Paratransit services are offered to: 1)unconditional passengers, meaning services can be used by those passengers for any trips, 2)conditional  outreach and to solicit feedback.  Elk Grove City Council Regular Meeting, June 9, 2010 Page 8of23    passengers, which defines certain conditions for eligibility, such as condition of Ms. Fink provided comparisons of paratransit services offered in the region, noting jurisdictions reduce or do not offer services to seniors, limit regional trips for medical purposes only, limit use of services to the boundaries of the jurisdiction, or implement transfers when a passenger's trip leaves a jurisdiction's service area. She noted that the Disability Advisory Committee (DAC) voiced their preterence to see weekend e-van service return for the residents in the City, and to provide regional service for medial related trips. The DAC also wanted to receive public feedback on requiring transfers for regional trips other than those medically related. The public outreach on proposed service adjustments would commence with an evening meeting coordinated with the DAC, and two midday meetings. Staff have scheduled July 28 to bring forward recommendations, including public feedback, with a goal to adopt service changes to take effect by October 1. A menu of options will be presented to Council to suggest service adjustments, including a program to group passengers during a particular time of the day to popular destinations such as Council Member Hume cautioned against making drastic cuts based on only meeting minimum legal requirements and in reaction to cuts made by other regional agencies, and to give weight to how policies and service adjustments will affect the Inr reply to Mayor Scherman, Ms. Fink explained that staff was considering proposal of a transfer model in the proposed menu of options, establishing a common transfer location between the Elk Grove and RT service areas at the South Sacramento Medial Area - Such a transfer model requires coordination effort to  health, and 3) senior citizen passengers.  to Downtown Sacramento or to a central medical facility.  individual paratransit passengers.  ensure passengers are not stranded at the transfer point. Mayor Scherman declared the public hearing open.  PUBLIC COMMENT: None.  Mayor Scherman declared the public hearing closed. REGULAR AGENDA ACTION TEMSRECOMMENDATONS  Agenda Item No. 10.1: Consider adoption of proposed budget for Fiscal Year 2010-11, the Capitai Improvement Plan for Fiscal Years 2010-15 and adoption of  the annual appropriations limit RECOMMENDATION:  Consider the proposed Budget for modifications and for adoption by resolution.  Elk Grove City Council Regular Meeting. June 9,2010 Page 9of23    With the aid of an overhead presentation (filed), Katy Baumbach, Budget Manager, provided an overview of the staff report and recommendation. The Fiscal Year 2010-11 budget ("Budget") is proposed at $210 million. The General Fund is just under $50 million, about one quarter of the entire budget. General Fund revenues in the last several years saw a significant drop, for 2010-11 revenue levels are projected to be up by 0.5%. Operating revenues display a significant decrease between 2007 and 2008 as Development Services revenues were segregated into the Development Services Fund, separate from the General Fund. The operating revenue remaining in the General Fund also includes the cost allocation plan. The 2009-10 revenue estimate shows sales tax as the single largest revenue source at approximately one third of all revenues, with property tax comprising 22% of revenues. The Budget projects a 6% increase in sales tax, an estimate consistent with projections made by the State, the Legislative Analyst's Office, and the City's tax consultant. The Budget projects the cost allocation plan to go down but projects as small positive adjustment in property tax revenues as property tax assessments are expected to level out, and as the City enters the next phase of its revenue neutrality agreement with Sacramento County shifting payback of property tax Regarding expenditures the City continues a historical trend to cut General Fund expenditures. Itis projected for Fiscal Year 2009-10 that the City to be $2 million under budget for estimated expenses by year end, and the proposed Budget is planned with expenditures down by a half million dollars from the current year. In the current year the Police Department represents 60% of expenditures in the General Fund. Also in the current year a majority of Development Services activity was shifted to the Development Services Fund, but 6% of the General Fund is utilized to continue to support to Development Services in the form of customer service activity, advanced planning, and making transfers to the Development Services Fund balance to cover any deficits. The proposed Budget continues in a similar fashion, with the Police Department making up 61% of the Budget. Part of the increase is due to the Police Department taking on the Animal Services Division, as both the Neighborhood Services and Administrative Services Departments are proposed to be disbanded in the Budget, with divisions being combined with existing departments: Animal Services to the Police Department, Code Enforcement toE Building Services (though Code Enforcement continues to be funded by the General Fund), and Economic Development and Budget functions transferred to the City Manager's Office. A contingency appropriation of $100,000 is included in the Budget to provide the Council a means to address unplanned expenditures that Ms. Baumbach detailed General Fund expenditures by category. Since Development Services was segregated into a separate fund there are no longer contract staff expenditures in the General Fund. City employee compensation comprises 60% of General Fund expenses, and yearly trends of decreased  revenues to the County from 85% to 80%.  may arise in the coming year.  Elk Grove City Council Regular Meeting, June 9,2010 Page 10of23    expenditures can be seen in decreased operating expenses in the General Fund. The Budget projects continuing employee compensation reductions as experienced in the current year. Staffing changes include reclassification of two Deputy City Manager positions into a Police Lieutenant and an Emergency Management Coordinator, and reclassifying a Customer Service Specialist to an Administrative Assistant position in Police Department. Additional positions listed in other funds, such as those in the Public Works Department, were included as directed by the The City has maintained balanced spending of total revenues and total expenditures in past years reducing the need to use funds from General Fund reserves. The Budget projects expenditures exceeding total revenues; projected revenues total $47.7 million, expenditures $49.3 million. The Budget projects the reserve balance to be approximately $17.7 million on July 1. General Fund reserve balance is proposed to be used for one-time expenditures in the amount of approximately $1.7 million as follows: $275,000 for equipment replacement, $550,000 loan to redevelopment funds for such activities, $250,000 to Development Services, and $600,000 to transfer to the new economic development incentive fund to fund projects that arise over the coming year. The adopted Reserve Policy ideally should achieve a reserve of 20%, and at very least 15%. The current year had projected to use $2 million in reserve balance, but because adequate savings in operations were realized no funding was required out of the reserve. In addition, the two year scope of last year's budget had expected use over $2.5 million for Fiscal Year 2010-11 out of reserves. Even with the use of the Budget proposed approximate of $1.7 million in reserve funding outlined earlier, the City will still maintain a reserve of over 30% of total. Ms. Baumbach noted a "green sheet" memo (filed) accompanying the Budget displaying administrative clean-up material since the draft Budget was released, and inclusion of the Laguna Ridge Park Fee Fund which is proposed to add an additional $2.1 million of funding to pay Laguna Ridge's share of projects in that area, one of which is Bartholomew Sports Park which is nearing the end of construction. The memo incorporates the $2.1 million reimbursement in the Budget to the Cosumnes Community Services District. Council Member Hume requested alternative analysis be provided in future budget presentations to display the effect of moving Development Services into a separate fund from the General Fund in order to provide a clear comparison displaying how a proposed City budget compares if it had the prior policy of including Development Services in the General Fund. Mr. Hume inquired about transfers in and out of the General Fund, comprising roughly 9.5% of expenditures in the General Fund, and whether it was accurate to view such transfers as the General Fund subsidizing City Manager Gill replied that for certain transfers, such as the Economic Development Fund, the purpose of transfers is not quite a subsidy but a means to segregate particular funds away from the General Fund sO the City can  Council and are funded by savings in contract services.  activities that normally wouldn't be required to subsidize.  Elk Grove City Council Regular Meeting, June 9,2010 Page 11of23    administratively track expenditure activities and recognize revenue growth from Mayor Scherman received confirmation that the green sheet memo finalized all staff adjustments, making the proposed Budget the final product presented for approval tob be acted upon by the Council. Ms. Baumbach clarified that if any further changes were required, those changes would be presented as budget amendments at a  investments.  future meeting. PUBLIC COMMENT:  Lynn Wheat brought attention to expenditures in the current and past budget listed under special projects regarding the South Sacramento Habitat Conservation Plan (HCP) and the City Sphere of Influence (SOI) application. Ms. Wheat believed private industry benefitted most from projects such as the HCP and SOI, and believed developers, not taxpayers, should primarily fund such projects. She noted that the current fiscal year, excluding the last three months, shows the City had spent approximately $400,000 for the HCP on environmental analysis, Planning Department labor charges, and legal fees. The current Budget proposes another $200,000. Likewise for the SOI the current year spent $85,000, and another $300,000 was proposed in the Budget. Ms. Wheat believed the half million dollars allocated for these projects could be better spent on direct services to citizens such as rebates for a shop local campaign, mortgage assistance, or added to the Shirley Peters stated that the Greater Sheldon Road Homeowners Estates Association (GRESHA) supports roundabouts for roadways in the rural area within the Capital Improvement Plan, listing the benefits of roundabouts for traffic control, Motion: M/S Hume/Cooper to adopt Resolution No. 2010-115 adopting the budget for Fiscal Year 2010-11, the Capital Improvement Plan for Fiscal Years 2010-15 and the annual appropriations limit. The motion passed by the following Agenda Item No. 10.2: Provide Direction for Delivery of Information Technology, Geographic Information Systems, and Facilities Maintenance Services  community grant program to aid the disabled, seniors, and youth.  safety, and aesthetics.  vote: Ayes: 5; Noes: 0.  RECOMMENDATION:  Provide direction as appropriate on the proposed delivery of: 1) Geographic Information Systems (GIS), 2) Supplemental Facilities Maintenance, and 3) Information Technology (IT) Services.  With the aid of an overhead presentation (filed), Joe Simone, Purchasing Manager, provided an overview of the staff report and recommendation. Currently citywide IT,  Elk Grove City Council Regular Meeting, June 9,2010 Page 12of23    GIS, and maintenance services are provided by contract, and IT services for the Police Department are provided by City employees. The service contracts in place expire in December. Staff propose to continue contracting for GIS and supplemental facilities services, issuing a Request for Proposals (RFP) in the fall. For IT services staff identified three options: 1) issue a standard RFP, 2) hire City employees and contract for supplemental services (similar to the current model of the Police Department), or 3) issue a managed competition RFP which differs slightly from a standard RFP in that it would be open to both the private and public sector. Under the third option the City would have an in-house unit comprised of the Police Department's IT Division staff that would submit a proposal in response. Staff recommends the third option of the managed competition RFP to gauge proposals from both the public and private sector. A team within the City, independent from those members that would submit a proposal under the third option, would develop the RFP and evaluate the proposals that are received.  PUBLIC COMMENT: None.  Motion: M/S Cooper/Hume to proceed with the Request for Proposals utilizing the approach of Option 3 for a managed competition Request for Proposals. The Agenda Item No. 10.3: Consider adoption of three resolutions setting fees and policies relating to Elk Grove Municipal Code Chapter 3.70 and Title 30 to be  motion passed by the following vote: Ayes: 5; Noes: 0.  effective July 1, 2010 RECOMMENDATION:  Adopt three (3) resolutions to be effective July 1,2010: Chapter 3.70 titled Utility Services Billing; relating to Solid Waste Management;  1) Setting Rates and Fees Associated with Elk Grove Municipal Code Title 3, 2) Setting Fees and Adopting Policy Associated with Elk Grove Municipal Code Title 3, Chapter 3.70 titled Utility Services Billing and Title 30, Chapter 30.20 3) Repealing Resolution Nos. 2003-148, 2006-13, and 2006-177, and Setting Fees and Adopting Policy associated with Elk Grove Municipal Code Title 30 (Chapters 30.50, 30.60, 30.70, and 30.90) relating to Solid Waste Management With the aid of an overhead presentation (filed), Cedar Kehoe, Integrated Waste Program Manager, provided an overview of the staff report and recommendation. On May 12 council approved ordinances adopting Elk Grove Municipal Code Chapter 3.70 and enacting Title 30, the three resolutions presented set fees and adopt policies related to these new ordnances. The first resolution involves three components: 1)providing a 20% reduction in solid waste rates for customers who qualify for the SMUD lifeline rate program, 2) establishing new customer credit, and 3) establishing a $50 fee in accordance with the Allied Waste Agreement relating to  Elk Grove City Council Regular Meeting, June 9, 2010 Page 13of23    carts collected from a delinquent parcel and returned to service at that same The second resolution establishes policy and procedures for resident requested service interruptions, and handling garbage collection exemptions for secondary structures and pre-existing self- haul designated residents. The additional element of the second resolution is inclusion of a Household Hazardous Waste (HHW) availability fee of $5 per month charged to individuals on a service interruption or a garbage exemption. Ms. Kehoe noted there are currently 26 qualified garbage The third resolution addresses issues specific to Title 30. The first element addresses requiring commercial haulers to have vehicles that pass an inspection from a qualified agency. The next element establishes a gross revenue formula calculated at $105 per ton, consistent with Sacramento Region Solid Waste Authority, to address "clean-up companies," separating out "clean-up work" different from established, regular hauling work. The third element of the resolution sets fees for late reports, including $2 per day fee for commercial haulers who are late in reporting their payments, and a late penalty fee of $50 for quarterly reports due from businesses with on-site recycling programs, which are required when the business subscribes to more than 4 cubic yards of service per week. The next element addresses Construction and Demolition (C&D) setting fees and standards consistent with regional jurisdictions using project valuation to determine if haulers are required to comply under the C&D regulations. If a project is valued greater than a quarter of a million dollars then it is designated a covered project and will require a C&D processing fee of 0.04% of total project valuation, with the exception of demolition projects which have specific recycling requirements. The third resolution includes policy regarding space allocation and closure design guidelines. The last element of the third resolution is implementation of a new sliding scale to incentivize implementation of recycling programs amongst commercial haulers. The standard set by the City is for commercial haulers to recycle 30% of the material collected, if the hauler proves they recycled 30% they pay gross revenue based franchise fees at the lowest percentage at the bottom of the scale, if they do not meet the goal they pay at a higher percentage on the higher end of the scale which increases the further they are from the 30% goal. The current sliding scale ranges from 8% to 35%, the new sliding scale, ranges from 10% to 20%. Staff found the current sliding scale to be too punitive with the current higher range, and the reduced scale on both ends would result in an anticipated $50,000 reduction in franchise fees. Raising the low end of the scale from 8% to 10% is consistent with regional jurisdictions, and with the overall revenue reduction from decreasing the high end, the 10% franchise fee was needed in order to fund current City programs. Staff surveyed current haulers regarding the proposed change in the sliding scale, and found that approximately 85% of customers would see a rate reduction or would stay flat under the new scale, the remaining 15% would incur a rate increase.  location.  exemptions, individuals who applied prior to July 1, 2010.  Elk Grove City Council Regular Meeting, June 9,2010 Page 14of23    PUBLIC COMMENT:  Steve Bruce, Managing Partner and Vice President of Atlas Disposal, spoke in support of the sliding scale concept, but requested the low-end remain at 8%. He stated his company would be forced to either absorb that increase on that sliding scale or pass that increase onto customers, which seemed unfair to punish Council Member Hume inquired as to the benefits of being a covered project under C&D regulations, to which Ms. Kehoe replied the City will ensure the project has an approved recycling plan which will be required under the new Green Building Code expected from the State that will require C&D recycling at all sites. She added that the program would be identified when applicants apply for their permits, and Motion: M/S Detrick/Davis to adopt: Resolution No. 2010-116 setting Rates and Fees associated with Elk Grove Municipal Code Title 3, Chapter 3.70 titled Utility Services Billing; and Resolution No. 2010-117 setting Fees and adopting Policy associated with Elk Grove Municipal Code Title 3, Chapter 3.70 titled Utility Services Billing and Title 30, Chapter 30.20 relating to Solid Waste Management; and Resolution No. 2010-118 repealing Resolution Nos. 2003-148, 2006-13, and 2006-177, and setting Fees and adopting Policy associated with Elk Grove Municipal Code Title 30 (Chapters 30.50, 30.60, 30.70, and 30.90) relating to Solid Waste Management. The motion passed by the following vote: Ayes: 5; Noes: 0. Agenda Item No. 10.4: Introduction of an ordinance amending Elk Grove  operators and customers that have historically met recycling goals.  monitored by Integrated Waste Department staff.  Municipal Code Chapter 4 relating to Business Licenses  RECOMMENDATION:  Introduce and waive the full reading, by substitution of title only, an ordinance amending Elk Grove Municipal Code Title 4 Division 1 relating to business Licensing and Permitting regulations and repealing Title 4 Division 2 relating to With the aid of an overhead presentation (filed), Andrew Keys, Finance Analyst, provided an overview of the staff report and recommendation. The purpose of business licensing is not regulatory, but rather used to be proactive in informing businesses of other regulations including fire, planning, General Plan, and other regulations. City business license regulation has had four revisions including a comprehensive update in 2005 that attempted to streamline processes. Many of the exemptions were eliminated, terms of licenses were reduced, and additional licensing categories were added. The proposed revision streamlines the review process, proactively informs business owners of regulations seeking to eliminate the complaint-driven system of enforcement, and ensures consistency and integrity of the General Plan and Specific Plans of the City. The revision moves from a two-  regulation of particular Special Business Licenses.  Elk Grove City Council Regular Meeting, June 9, 2010 Page 15of23    year term to a one- year general license term to keep economic data as fresh and reliable as possible as the highest rate of failure for businesses is in the first year. The revision reduces down license categories from the current 10 down to a general, special, and employee permit. Each of these permits would be treated as separate, unique fees. Specific regulations for sublicense categories have been eliminated with the intent that the sponsor agency only is required to file for a license. Businesses would continue to require having a physical location in the City and anyone doing business within the City or in contract with the City would require a license. Minor administrative changes are suggested for noticing procedures when a license expires, requiring special license holders to maintain a list of their employees, and shifts issuance of special licenses to consolidate under the Finance Director with review by the Chief of Police (instead of being directly issued by the Chief). The revision proposes businesses would not be allowed to operate until they have an official license (currently businesses can operate while the license is under review), and specific, listed exemptions currently codified would be removed and Mr. Keys detailed outreach was conducted with the Chamber of Commerce, and a plan was drafted to enhance website features and to host business owner workshops to provide information regarding the new changes and to highlight other economic development tools recently developed. In regards to fiscal impact, the proposed revision does not set new fees or change fees, but by shortening the renewal period there will be more renewal applications at a lower cost per application. This will result in a reduction in business license revenue in the next fiscal year which was factored into the Fiscal Year 2010-11 budget. The reduction is because the term on current two-year licenses that have been already issued cannot be rescinded. In the first year, revenues will be half of what would typically be received, and going forward there is expected to be a slight increase due to the Inr reply to Council Member Davis, Mr. Keys noted the changes would be implemented with existing businesses on a forward going basis, and all future businesses would be subject to the new regulations. Council Member Davis believed effective outreach could be conducted through the Chamber of Commerce, and he requested in that in conducting the workshops to specifically contact property center owners as well, as they are the parties that are often the initial Mayor Scherman believed education was key and workshops coordinated with members of the Chamber of Commerce would be the most effective means in Inr reply to Council Member Hume, Mr. Keys noted that the revision conducted in 2005 removed several exemptions due to changes in how businesses located at that time, in particular a number of businesses were not locating in typical business  replaced with a blanket exemption.  proposed structuring of fees.  contact to bringing new businesses into the community.  reaching new businesses and entrepreneurs.  Elk Grove City Council Regular Meeting, June 9,2010 Page 16of23    parks. In eliminating those exemptions, a full review could be conducted to ensure businesses that were locating in commercial shopping center areas were Council Member Hume observed that one of the exemptions removed addressed beauty shops and, as an issue he had raised previously, he did not believe individual operators in the location of a single salon should require separate business licenses. Mr. Hume did not believe that the City had a positive working relationship with the business community, and felt both the current process and proposed revision unnecessarily pulls business owners into additional bureaucratic Mr. Keys confirmed to Mayor Scherman that the City would not have the means to regulate or enforce licenses issued by other government agencies, such as state cosmetology licenses, but that the business license process provides a means for the City to conduct a cursory review that such licenses, at a minimum, are City Attorney Cochran clarified that for independent contractors and individual employees of a business not all would be required to have a business license. The determination of requiring a license would be by the type of business that they are involved in, and whether those activities are already regulated by the state, which would include such activity in the class of exemptions that exist for federal and state workers, making the issue dependent on whether state law allows you to have Ms. Cochran noted that section 4.02.040 of the proposed ordnance addresses when a license is required. In specifically addressing Council Member Hume's concerns relative to beauty salon operators, Section 4.02.050(B) handles situations of individual space which currently requires a separate business license unless otherwise exempt by state regulation. The Council would need to modify this part of the ordinance to address the beauty salon exemption described by Mr. Hume. Ms. Cochran continued that numerous businesses are exempt from business licenses, with a significant number of categories of businesses in California that are Council Member Hume did not believe that local agencies should seek additional regulation merely because the state did not prohibit greater regulation. He agreed that special business permits protecting the health and safety of the community were understandable, but believed additional businesses were being over- regulated, citing examples of professional offices, real estate, stock brokerage, travel agencies, telephone answering, retail stores, data processing, tailors, barbershops, museum, and art galleries that did not seem to apply to having to meet excessive compliance requirements from a health and safety standpoint.  appropriate for that type of location.  processes requiring additional permits and fees.  possessed by and kept up to date by applicants.  additional requirements.  still regulated by the state.  Elk Grove City Council Regular Meeting, June 9, 2010 Page 17of23    Ms. Cochran cautioned that in addressing exemptions an adequate level of specificity should be included to avoid licenses only being issued for a single site Council Members Davis and Hume believed additional outreach to the business community was required to refine suggested changes to the proposed ordinance.  that consists of a variety of businesses.  PUBLIC COMMENT: None.  By Council consensus, direction was given to conduct further outreach with the business community and to return the item for Council consideration in 60 days. Agenda Item No. 10.5: Consider resolution (continued from May 26, 2010) calling and giving notice to the qualified electors of the City of Elk Grove measures relating to the Elective Office of Mayor to be included in the consolidated General  Municipal Election of November 2, 2010  RECOMMENDATION:  Adopt resolution calling and giving notice to the qualified electors of the City of Elk Grove measures relating to the Elective Office of Mayor to be included in the Jason Lindgren, Interim City Clerk, provided an overview of the staff report and recommendation. The question before the Council is whether to consolidate down tot two measure questions or proceeding with the three questions that were initially proposed. The Sacramento County Registrar of Voters confirmed they will accept a variant of language from the standard YES / NO question, and would print TWO YEARS / FOUR YEARS. Staff was not aware of other jurisdictions that have utilized condensing the term question, sO such an approach exposes risk to legal challenge. Mr. Lindgren noted the resolution presented includes additional language to clarify the effect of voting on the initial question prescribed by the Government Inr response to Council Member Davis, Mr. Lindgren confirmed staff would want to put forward the exact language from the Government Code, but for any wording presented that was an embelishment of the required Government Code language was purely at Council's discretion to be expanded or removed entirely. Mayor Scherman suggested the word number be substituted with member under the elective office of mayor question in describing how the Council currently selects  consolidated General Municipal Election of November 2, 2010.  Code for the elective office of mayor.  the Mayor.  Elk Grove City Council Regular Meeting, June 9,2010 Page 18of23    Council Member Hume believed the matter of the directly elected mayor was an important enough issue that the cost to ask both term questions was small compared to the risk of having to legally defend an alternate approach.  PUBLIC COMMENT:  Susan Pecci raised concern that in posing the multiple questions, voters who do not wish a directly elected mayor would still have the ability to affect the outcome of the term of office questions. She believed the questions unnecessarily confuse the issue, that the issue itself is not of high importance to the majority of the community, and by combining these questions with additional measures, too many factors were Council Member Hume noted that the ability for voters to address all measures provides the means to protect voters' right to have a say on the terms of a measure they may not have agreed with, as they still would be subject to effects under the Mayor Scherman observed that education on the effect of voting on the measures would be generated in community discussion to educate voters on the effect and interaction of their vote on the three questions related to the directly elected mayor. Motion: M/S Hume/Davis to adopt Resolution No. 2010-119 calling and giving notice to the qualified electors of the City of Elk Grove measures relating to the Elective Office of Mayor to be included in the consolidated General Municipal Election of November 2, 2010 replacing the word "number" with "members" and submitting Option 2 to pose two separate term questions for a total of three measures. The motion passed by the following vote: Ayes: 4; Noes:1  being hastily pushed forward.  ramifications of the measure.  (Cooper).  NOTE: Council Member Davis left at 9:19 p.m.  Agenda Item No. 10.6: Consider resolution setting priorities for filing written arguments regarding City Measures scheduled for the November 2, 2010 General Municipal Election and directing the City Attorney to prepare the impartial analyses Adopt resolution setting priorities for filing written arguments regarding City Measures scheduled for the November 2, 2010 General Municipal Election and Jason Lindgren, Interim City Clerk, provided an overview of the staff report and recommendation. Mr. Lindgren noted that the resolution as presented would need to be noted to be amended to reflect the language adopted in the previous item for  RECOMMENDATION:  directing the City Attorney to prepare the impartial analyses.  asking the three questions related to the directly elected mayor.  Elk Grove City Council Regular Meeting, June 9, 2010 Page 19of23    PUBLIC COMMENT:  Motion: M/S Hume/Cooper to adopt Resolution No. 2010-120 setting priorities for filing written arguments regarding City Measures scheduled for the November 2, 2010 General Municipal Election and directing the City Attorney to prepare the impartial analyses and amending the resolution language to reflect the measures presented under Resolution No. 2010-119. The motion passed by the following  vote: Ayes: 4; Noes: 0; Absent: 1 (Davis). NOTE: Council Member Davis returned at 9:20 p.m.  Agenda Item No. 10.7: Provide direction on Request for Grand Jury  Investigation RECOMMENDATION:  Provide direction on Request for Grand Jury Investigation.  Council Member Hume stated that he would recuse himself from the discussion of  this item.  NOTE: Council Member Hume left at 9:21 p.m.  Susan Cochran, City Attorney, provided an overview of the staff report and recommendation. A draft of the submission to the Grand Jury is presented for Council approval, which follows the Grand Jury claim form guidelines for submission, the claim form was provided by "green sheet" memo. The City is essentially taking allegations that arose over a span of years that have been raised by various residents. In addition, several "green sheet" supplemental items were received prior to the meeting raising additional concerns and allegations. These additional items can be included with the Grand Jury letter. In drafting the letter documents used were in the public domain. Documents that were not included were those either in the possession of the District Attorney, or the Police Department as those records are privileged information. The Grand Jury itself has the ability to use its subpoena powers to seek those records if they choose a course Mayor Scherman inquired as to how "green sheet" items submitted in regards to this item could be incorporated into a submittal to the Grand Jury as some of the Ms. Cochran responded that inclusion of any materials with the request was at the Council's discretion, as a majority of the material surrounding the discussion was hearsay. A difficulty in submitting a claim to the Grand Jury was to provide information on who to contact directly about the matter, for anonymous accusations  to investigate the matter.  communications are from anonymous sources.  itcreates barriers for the Grand Jury to pursue an investigation.  Elk Grove City Council Regular Meeting, June 9, 2010 Page 20 of23    PUBLIC COMMENT:  Tom Shine expressed his disappointment in the conduct of the Council to become involved in an item that has already gone before the District Attorney. He believed the Council should cease pursuing the matter and to return to the business of the Tom Waltman expressed his agreement with the statements of Mr. Shine. Tim Murphy asked the Council to cease action on this item. He expressed his opinion that parties involved in the matter before the Council started engaging the Council as community activists when controversial issues prompted such activism, but absent those issues, these parties have taken to manufacturing controversy. Mr. Murphey did not believe the course of this controversy was representative of what the citizenry as a whole wants from City government. He believed the matter was a personal issue inappropriate for the Council to discuss, and requested explanation as to why the District Attorney's determination was not sufficient. Mr. Murphey announced the formation of Elk Grove FIRST, a citizen group seeking tot focus policy discussion on issues that affect the entire City, and closed with the observation that new businesses seeking to relocate in the region will be discouraged by a Council that is unable to function in a reasonable and professional Paul Lindsey asked the Council take no action on the item and reiterated that the District Attorney's Office had already investigated and rebutted all of the allegations. He did not believe a compelling reason was provided for the City to pursue this matter. Mr. Lindsay believed there was an apparent conflict of interest related to council members receiving campaign contributions from the parties involved, and he requested that all council members who had received such contributions to recuse Treena Burt requested the Council to cease pursuing the matter, agreeing with earlier speakers' comments and noting that the Council's behavior on the dais was Jake Allen expressed his disappointment with the lack of leadership, transparency, and ethics shown by the majority of the Council. He believed Elk Grove has led a history of elected officials abusing power who appear beholden to special interest groups. He reviewed the City Code of Ethics, stating his opinion that by prior action, and in particular the discussion on this matter from the last meeting, that the entire Council was in violation of meeting the standards of the Code of Ethics. Mr. Allen challenged the Council as a whole to improve its behavior.  City.  manner.  themselves from the discussion.  an embarrassment to the community.  Elk Grove City Council Regular Meeting, June 9, 2010 Page 21 of23    Michelle Bloomstine asked the Council to discontinue focus on the personal matters of their peers and to return to working on the issues of the entire City. Mary Grosjean agreed with comments of Ms. Bloomstine and requested the Council Council Member Cooper motioned to submit the letter as attached to the staff report. He stated he originally brought the item forward as he had concerns as a police officer, and believed a third party should investigate. He did not believe this matter should have come back before the Council, and did not want any additional Mayor Scherman recognized Council Member Davis seconding the motion, and opened the matter for discussion and deliberation. She stated she was embarrassed by the actions of the Council regarding this matter and would not be a signatory to the letter, nor would she take any further action in moving the request Council Member Davis expressed his frustration that this item was consuming the Council's time. He believed the direction given to send a claim to the Grand Jury was to recommend the issue to a third party, impartial group, and to free the City Attorney Cochran noted that claims submitted to the Grand Jury require a signatory, absent the signature of the Mayor, Ms. Cochran suggested the motion be amended to designate another signatory such as the City Manager or City Attorney. Vice Mayor Detrick stated he did not support the letter the way it was presented. Council Members Cooper and Davis agreed to the suggested amendment to the original motion that the City Attorney be signatory to the letter and offered an Motion#1: M/S Cooper/Davis to submit the letter as presented in the staff report tot the Sacramento Grand Jury with the exception that the letter would be signed by the City Attorney and not the Mayor. The motion FAILED by the following vote: Council Member Cooper requested clarification as to how the claim and letter were Ms. Cochran stated there was no existing letter, as at the last meeting there was no discussion as to the content of the letter. Tonight's meeting was first opportunity to present a draft for Council review and approval to request an investigation as to whether the City Code of Ethics had been violated, using the concerns relative to  drop the matter and return to addressing City issues.  information or comments on the matter included with the submittal.  to the Grand Jury forward.  Council's time from any further discussion.  amendment by substitution as follows:  Ayes: 1(Cooper); Noes: 3; Absent: 1 (Hume).  originally written and what, if anything, had been altered.  Elk Grove City Council Regular Meeting, June 9, 2010 Page 22of23    what had been included in the District Attorney's letter. Though the District Attorney's Office declined to prosecute criminally, there were still potential civil and Code of Ethics issues the City could request the Grand Jury to investigate. Council Member Davis believed that involved parties outside of the Council had already petitioned the Grand Jury to investigate the allegations, and if not, parties could pursue personal civil suits. Since the process was consuming the attention of the Council, he stated the Council should end its involvement in the matter. Motion #2: M/S Scherman/Davis to not submit a letter request to the Sacramento Grand Jury. The motion passed by the following vote: Ayes: 3; Agenda Item No. 10.8: Consider appointment of one general public member to  Noes: 1(Cooper); Absent: 1 (Hume). the Solid Waste Advisory Committee RECOMMENDATION: Solid Waste Advisory Committee.  Adopt resolution appointing one general public member to fill one vacancy on the Jason Lindgren, Interim City Clerk, provided an overview of the staff report and  recommendation. PUBLIC COMMENT:  Motion: M/S Davis/Scherman to adopt Resolution No. 2010-121 appointing Jerry Cummings as a general public member to the Solid Waste Advisory Committee. The motion passed by the following vote: Ayes: 4; Noes: 0; Absent: 1 (Hume). With no additional business to conduct, the June 9, 2010 City Council meeting was  ADJOURNMENT  adjourned at 10:00 p.m. in memory of Daniel DiBenedetto.  1 JASON LINDGRE INTERIM CITY CLERK  26  ATTEST:  h h SOPHIA SCHERMAN, MAYOR  Elk Grove City Council Regular Meeting, June 9, 2010 Page 230 of23