CITY OF ELK GROVE Incorporated July 1, 2000  MINUTES OF THE CITY COUNCIL  REGULAR MEETING Wednesday, April 14, 2010  CALL TO ORDER/ROLL CALL  Mayor Scherman called the regular City Council meeting of April 14, 2010 to order  at 6:05 p.m. Present: Absent:  Mayor Scherman, Vice Mayor Detrick, Council Members Davis and  Hume  Council Member Cooper (arrived at 6:07 p.m.)  Tyler Bodhaine led the Pledge of Allegiance.  Mayor Scherman asked that a moment of silence be observed.  APPROVAL OF AGENDA  Motion: M/S Davis/Detrick to approve the agenda as presented. The motion passed by the following vote: Ayes: 4; Noes: 0; Absent: 1 (Cooper)  CLOSED SESSION  NOTE: Council Member Cooper arrived at 6:07 p.m. adjourning to closed session at 6:07 p.m.:  The City Clerk announced the following closed session item prior to Council  PUBLIC COMMENT: None.  A) CONFERENCE WITH REAL PROPERTY NEGOTIATORS  Pursuant to Government Code S 54956.8  Property Description: City Negotiators: Negotiating parties: Under negotiation:  9108 Elk Grove Boulevard Elk Grove, CA APN: 125-0243-039-0000 Laura Gill, City Manager Price and Terms  Trent Lundin of Freeport Ventures, LLC  Elk Grove City Council Regular Meeting, April 14,2010 Page 1of21    The City Council reconvened at 6:19 p.m. with all Members present. Mayor Scherman announced that no reportable action was taken in closed session.  PRESENTATIONS/ANNOUNCEMENTS  4.1 Mayor Scherman presented a Certificate of Appreciation to Tyler Bodhaine of Boy Scout Troop 186 for his Eagle Scout Leadership Service Project. 4.2 Council Member Hume presented a proclamation to Elk Grove Volunteers In Police Services recognizing April 18 to 24, 2010 as "National Volunteer  Week".  4.3 Council Member Davis presented a proclamation to Gary Goodman, Assistant Manager of the Sac-Yolo Mosquito & Vector Control District recognizing April 26 to 30, 2010 as Mosquito Awareness Week".  4.4 With the aid of an overhead presentation (filed), Cedar Kehoe, Integrated Waste Program Manager, gave a presentation on Earth Week 2010  activities.  4.5 With the aid of an overhead presentation (filed), Richard Shepard, Public Works Director, explained that the Capital SouthEast Connector project is designed to connect the communities of El Dorado Hills on Highway 50 with Elk Grove on Interstate 5. The project began in 2002 and in 2004 was included in Sacramento County's Measure A (1/2% sales tax). In 2006 the Sacramento Area Council of Governments completed an environmental phase one study and a technical final report. Also in 2006 a Joint Powers Authority (JPA) was formed with the County of Sacramento, County of El Dorado, and the cities of Folsom, Rancho Cordova, and Elk Grove. In February 2010 the JPA initiated a notice of preparation for a program level Environmental Impact Report (EIR), which is expected to be ready for public review by the end of this year. The JPA has sponsored a special working group comprised of representatives from the Sheldon and Wilton communities to evaluate strategies for the connector as it runs through the Grant Line Road area. An EIR scoping meeting was held in Elk Grove on March 3, 2010. The JPA is supporting a focused study in the Sheldon area to analyze environmental, social, and economic impacts and Elk Grove is contributing $15,000 to help facilitate this work. The intent of the Limited Access Road Alternative is to close off many of the existing access points to Grant Line Road, because fewer intersections can carry more traffic.  PUBLIC COMMENT  Frank Verni announced a Texas Hold'em Tournament fundraiser on April 24. All proceeds will benefit the Animal Rescue League, which is an Elk Grove non-profit  Elk Grove City Council Regular Meeting, April 14,2010 Page2of21    organization that rescues and finds good homes for neglected and abandoned  animals.  GENERAL ADMINISTRATION INFORMATION Assistant City Manager, effective April 12. COUNCIL COMMENISFUTURE AGENDAI ITEMS  City Manager Laura Gill reviewed the April 14 Administrative Report (filed). She announced that former Finance Director Rebecca Craig has been selected as the  Reports on Regional Boards, Commissions, Committees; Travel/Training Expenditures Disclosure (in accordance with Resolution 2009-212 and Government Council Member Davis reported that discussion took place at the Sacramento Area Council of Governments (SACOG) meeting regarding the Federal Sustainable Communities Partnership. Addressing staff, he noted that there are a number of Federal sources for funds which should be explored. "May is Bike Month" is an event sponsored annually by SACOG to encourage cycling in order to reduce air pollution. He asked for and received concurrence from Council to direct staff to Vice Mayor Detrick asked that newly appointed Cosumnes Community Services District Fire Chief Tracey Hansen be introduced at a City Council meeting, to which Mayor Scherman replied that she is scheduled to appear at a meeting in June. He asked for Council concurrence to direct staff to return with a draft resolution promoting safe driving by educating the public about the danger of texting while driving, to which Council Members Cooper and Davis expressed agreement. Council Member Hume stated that he had a meeting scheduled for April 22 with Donna Burke, AT&T Executive Director - External Affairs, to discuss its public Council Member Hume reported that the Sacramento Transit Authority meeting for April was canceled. Sacramento Regional Transit has set a hearing to discuss next year's budget. A reception was held April 13 for California Transportation Commission Chairman Jim Earp. A reception will be held at the upcoming Sacramento Metro Chamber "Cap to Cap" Washington, D.C. trip to draw attention to Council Member Cooper stated that the Sacramento Regional County Sanitation District Board of Directors is considering a 50 cent per month increase for sewer services. He asked Code Enforcement to look into the vacant property at Elk Grove Boulevard and Harbor Point Drive, upon which a tractor trailer without wheels has  Code S 53232.3(d):  return with a draft ordinance relating to unattended donation boxes.  awareness campaign [regarding textingl.  the Capital SouthEast Connector project.  been located as a structure for sign placement.  Elk Grove City Council Regular Meeting, April 14,2010 Page3of21    Mayor Scherman reported that, as of the beginning of April, 71,406 Elk Grove census forms have been returned and she encouraged citizens to complete and  mail their forms back. CONSENT CALENDARITEMS  Tim Hoy asked questions related to Items 8.21 and 8.23, to which Assistant City Manager Rebecca Craig explained that the Neighborhood Stabilization Program is designed to rehabilitate foreclosed homes. A down payment assistance program is also being offered. The banking services contract is for Bank of America to handle In reference to Item 8.15, Lynn Wheat stated that she had emailed her comments to staff and had expected a similar reply; however, instead, she received a packet of information shipped via FedEx, which she believed to be fiscally irresponsible. She asserted the proposed project lacks imagination and vision regarding how to address localized flooding and storm water drainage. She maintained that In reference to Item 8.20, Jeremy Goulart representing Towne Development of Sacramento reported that it had submitted a proposal to the City in February to assist the City in the implementation of the Neighborhood Stabilization Program. He noted that Towne Development has built and rehabilitated over 100 homes in Elk Grove. He urged Council to approve an agreement with two firms in order to increase the number of local workers and businesses that could be engaged in Inr reference to Item 8.20, Pam Canada of NeighborWorks Homewnership Center Sacramento Region stated that it is fully ready and equipped with adequate funds to handle the entire project. She believed an agreement with a single contractor was a better strategy, as it provides efficiencies for City staff and the project developer. GALA Construction has extensive experience throughout the region in rehabilitating Ina answer to Council Member Cooper, Assistant City Manager Craig reported that Towne Development originally stated that they needed $600,000 in order to deliver the project; however, since then they have decreased the amount to $500,000. Staff was also concerned that coordinating between two vendors might present Council Member Hume favored splitting the award between the two vendors sO that more people would be engaged in the process, which might also result in faster  millions of dollars in transactions for the City of Elk Grove.  detention basins are not a visually appealing drainage mechanism.  implementing the program.  homes and renovating them for energy efficiency.  challenges, particularly with the short timeframe of five months.  delivery.  Elk Grove City Council Regular Meeting, April 14,2010 Page 4of21    Ms. Craig suggested that both firms be authorized up to the full amount to create competition, to which Council Members Cooper, Davis, and Hume voiced Mayor Scherman recalled having asked that a local office be provided for the program, to which Ms. Craig stated that she is coordinating it with the Planning Inr reference to Item 8.14, Mayor Scherman asked if it would be possible to include an observation platform on the bridge over Elk Grove Creek. Public Works Director Richard Shepard replied that he would look into the cost and logistics of doing so. Inr reference to Item 8.19, Mayor Scherman pointed out an error on page 5 of the staff report, item 6, which should read farming" (not "farm") community. Motion: M/S Hume/Cooper to approve the Consent Calendar as presented. The  agreement.  Department.  motion passed by the following vote: Ayes: 5; Noes: 0.  Agenda Item No. 8.1: 2010108 through 2010117 Agenda Item No. 8.2: Agenda Item No. 8.3: Agenda Item No. 8.4:  Received Automatic Clearing House Nos. 1077 through  1228 dated March 1, 2010 through March 31, 2010, General Warrant Nos. 52082 through 52712, and Electronic Fund Transfer Nos. 2010102 through 2010106 and  Received February 2010 Treasurer's Report  Approved City Council Meeting Minutes: 1) March 24, Received report on City Manager approved purchases  2010 Special Meeting, and 2) March 24, 2010 Regular Meeting  and contracts authorized by Elk Grove Municipal Code Chapter 3.42 Contracts and  Purchasing, filed through April 7, 2010  Agenda Item No. 8.5: Qualifications, and Bids Agenda Item No. 8.6:  Received report on Requests for Proposals, Ordinance No. 7-2010 adopted adding Elk Grove  Municipal Code Section 6.18.120 and amending Section 6.18.360 relating to  "Abandoned Vehicles" (Second Reading)  Agenda Item No. 8.7: (Second Reading)  Ordinance No. 8-2010 adopted amending Elk Grove  Municipal Code Sections 16.20.100 and 16.20.200 relating to "Housing Code"  Elk Grove City Council Regular Meeting, April 14,2010 Page5of21    Agenda Item No. 8.8: County Recorder Agenda Item No. 8.9:  Resolution No. 2010-59 adopted accepting the Slurry  and Chip Seal Project 2009 as complete and authorizing the City Engineer to prepare, and the City Clerk to file, the Notice of Completion with the Sacramento  Resolution No. 2010-60 adopted accepting the Asphalt  Concrete Overlay and Curb Ramp Improvements Project 2009 and the Elk Grove Boulevard Rehabilitation (Bruceville Road to State Route 99) Project as complete and authorizing the City Engineer to prepare, and the City Clerk to file, the Notice of Agenda Item No. 8.10: Resolution No. 2010-61 adopted accepting the Harbour Point Drive Median Improvements 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. 8.11: Resolution No. 2010-62 adopted authorizing the City Manager to execute a construction contract with Republic Intelligent Transportation Services, Inc. for the Poppy Ridge Street Light Replacement / Retrofit Project in the amount of $150,716 and authorizing the City Engineer to approve change orders Agenda Item No. 8.12: Resolution No. 2010-63 adopted authorizing the City Manager to execute a construction contract with DeSilva Gates Construction for the Franklin Boulevard / Elk Grove Boulevard Intersection Widening and Bus Turnouts Project in the amount of $1,005,666 and authorizing the City Engineer to approve construction change orders not to exceed $151,000; and Resolution No. 2010-64 adopted authorizing the City Manager to execute a consultant contract amendment with Wood Rodgers, Inc. for the Franklin Boulevard I Elk Grove Boulevard Intersection Widening and Bus Turnouts Project in an amount not to exceed Agenda Item No. 8.13: Resolution No. 2010-65 adopted authorizing the City Manager to sign a Joint Use and Maintenance Easement Agreement with the Cosumnes Community Services District for the Laguna Creek Trail Bridge Project Agenda Item No. 8.14: Resolution No. 2010-66 adopted authorizing the City Manager to execute a task order with Mark Thomas and Company, Inc. for professional engineering services for the Long Leaf Drive Bridge over Elk Grove Agenda Item No. 8.15: Resolution No. 2010-67 adopted adopting the Initial Study / Mitigated Negative Declaration and the Mitigation Monitoring and Reporting Program and approving the Elk Grove Intermodal Rail Station Master Plan Project; and Resolution No. 2010-68 adopted authorizing the City Manager to execute a  Completion with the Sacramento County Recorder  Sacramento County Recorder  not to exceed $30,000  $12,270 [for a total compensation amount not to exceed $713,363]  Creek Project in an amount not to exceed $135,958  Elk Grove City Council Regular Meeting, April 14,2 2010 Page 6of21    consultant services contract with Kimley-Horn and Associates, Inc. for the preliminary design of the Elk Grove Intermodal Rail Station Master Plan Project in Agenda Item No. 8.16: Resolution No. 2010-69 adopted authorizing the City Manager to execute a construction contract with Wunschel & Sons, Inc. for the Stonebrook Drive Pedestrian / Bicycle Trail Improvement Project in the amount of $19,970 and authorizing the City Engineer to approve change orders not to exceed Agenda Item No. 8.17: Authorized recruitment to fill one vacancy on the Historic Agenda Item No. 8.18: Authorized recruitment to fill one vacancy on the Solid Agenda Item No. 8.19: Resolution No. 2010-70 adopted authorizing the City Manager to execute an agreement with the Bureau of Land Management, Folsom Resource Area, for the management and administration of the Delta Breeze Vineyard Property for a term of five years in an amount not to exceed $60,000 Agenda Item No. 8.20: Resolution No. 2010-71 adopted as amended authorizing the City Manager to negotiate the contract terms and execute an agreement with NeighborWorks HomeOwnership Center Sacramento Region and GALA Construction, Inc. and Towne Development of Sacramento, Inc. for the Neighborhood Stabilization Program Acquisition I Rehabilitation/ / Resale Program and authorizing the City Manager to change the contract terms and amount if either NeighborWorks or Towne Development do not meet performance requirements Agenda Item No. 8.21: Resolution No. 2010-72 adopted authorizing the City Manager to enter into a contract with Mission Housing Development Corporation to acquire and lease six affordable housing units in the amount of $584,928 using Neighborhood Stabilization Program funds and authorizing the City Manager to change the contract terms and amount if Mission Housing does not meet Agenda Item No. 8.22: Resolution No. 2010-73 adopted authorizing staff to modify the terms and conditions of the Fiscal Year 2009-10 Grantee Agreements to allow for payments in advance for the Elk Grove Police Activities League and Elk Agenda Item No. 8.23: Resolution No. 2010-74 adopted authorizing the City Manager to execute the necessary documents for the second amendment to the Banking Services Contract with Bank of America, extending the contract for two,  an amount not to exceed $429,951  $4,000  Preservation Committee Waste Advisory Committee  performance requirements  Grove Teen Center  Elk Grove City Council Regular Meeting, April 14,2010 Page7of21    one-year terms and authorizing an expenditure of funds not to exceed $216,000 Agenda Item No. 8.24: Resolution No. 2010-75 adopted authorizing the City Manager to execute a fee deferral agreement with Edge All Stars to allow deferral  [for a total compensation amount not to exceed $432,000]  terms not included in the current program  PUBLIC HEARINGS None.  REGULAR AGENDA ACTION TEMSRECOMMENDATONS  Agenda Item No. 10.1: Receive Quarterly Development Services Project Update Staff Report - Storm Drain Master Plan, South Sacramento Habitat  Conservation Plan and Sphere of Influence Amendment Receive report and provide staff direction as desired.  RECOMMENDATION:  Darren Wilson, Public Works Water Resources Manager, reported that, three years after the City's incorporation, the County transferred ownership and maintenance responsibility of the drainage system to the City. The City then retained the services of West Yost Associates and David Ford Consulting Engineers to prepare the storm drainage master plan. To assist in developing the plan, an Expert Advisory Committee was formed in May 2009. In March 2010 analysis of the existing system began. The environmental process will take place from September 2010 through May 2011. Staff expects the plan to be brought forward for Council Council Member Hume recommended that, rather than a dry detention basin or a channelized drainage ditch, the natural creeks should be retained as an amenity for the community by providing walking trails that are incorporated into a connected trail system. He also asked that groundwater recharge opportunities be explored. With the aid of an overhead presentation (filed), Taro Echiburu, Interim Planning Director, explained that the South Sacramento Habitat Conservation Plan (HCP) is a regional approach to balance the effects of urban development with the preservation and protection of natural resources, habitat, open space, and agricultural lands. Funding through Federal grants and other plan participants has been secured to complete the document and a draft of the HPC is expected to be completed by fall of this year. The Capital SouthEast Connector Joint Powers Authority is also a participant in the HCP. The next steps in the process include receiving input from various agencies, members of the public, stakeholders, and preparation of the environmental document. Staff will continue to work with the U.S. Army Corp of Engineers to integrate the 404 [Clean Water Act] permit process into  approval in June 2011.  Elk Grove City Council Regular Meeting, April 14,2010 Page 8of21    the HCP, which regulates the discharge of dredged, excavated, or fill material into Mr. Echiburu reported that the Sphere of Influence (SOI) process began in January 2007 when Council directed staff to begin looking at the Urban Study Area, which is identified in the General Plan as areas of potential future growth. In June 2007 Council identified boundary limits of where urbanization would occur. Following public outreach, Council directed staff to further modify the SOI to follow specific parcel lines. In May 2008 Council directed staff to submit a SOI amendment application to the Local Area Formation Commission (LAFCo). Following public outreach, in November 2009 staff drafted a Memorandum of Understanding (MOU) between the County and the City. Mr. Echiburu pointed out that the MOU is not a requirement of the LAFCO process; however, the City and County have agreed that the MOU be included in the application when it is complete. Mr. Echiburu reviewed the draft MOU (filed as attachment 1 to the staff report). He stated that the City would ask LAFCO to approve the MOU as a condition of approval for the SOI, which would then be a condition of approval for future annexations. That action would make the elements in the MOU binding upon the City for any future annexations. He outlined the following public comments that require policy direction: 1. Whether the floodplain should be excluded from the proposed SOI application; 2. Whether voter approval should be required before moving forward with either the 3. Whether to establish a minimum build-out threshold in the city limits before 4. Ifwork with the County should continue to consider alternatives to the Transition 5. A petition was received from a group of property owners from the north eastern area of the Town of Franklin (signed by all except one property owner) who request that the area be removed from the proposed SOI application. Mr. Echiburu reported that staff has done an analysis and found 4,800 gross acres of empty land now existing in Elk Grove, which could be developed. There are 7,000 total acres that could be developed if every parcel in the City were developed to the maximum allowed under the General Plan. During public outreach, a suggestion was made that a citizens committee be created to consider the SOI and any future annexations; however, Mr. Echiburu recommended that it be delayed Council Member Hume referenced a "green sheet" communication regarding the perception of a conflict of interest (filed). Mr. Hume acknowledged that his stepfather owns property that would be considered in the transitional area. In this case there is no consanguinity and, furthermore, his stepfather retains it as his sole and separate property, which is not comingled with the estate of Mr. Hume's mother ina any way. Mr. Hume confirmed that he had no financial interest in that, or any  wetlands, streams, and rivers.  SOI process or future annexations;  considering proposals for either the SOI or annexations;  Zone area; and  until after the SOI is delineated and land planning can begin.  other property, within the considered lands.  Elk Grove City Council Regular Meeting, April 14,2010 Page9of21    In answer to Council Member Davis, Mr. Echiburu confirmed that the current SOI application crosses parcels, which are bisected by the Cosumnes River.  PUBLIC COMMENT:  Constance Conley stated that she was speaking as a private citizen and recalled that, for over two years, hundreds of people have asked that the floodplain be removed from the SOI application. She urged Council to consider the fact that any decision made tonight regarding this matter will have effects for generations to Tim Hoy felt that there should be no consideration of expanding Elk Grove before infill is done and its current problems of traffic congestion, foreclosed homes, etc. With the aid of an overhead presentation (filed), Doug Williams stated that he was speaking on behalf of the owners of four farms in the eastern area representing one-third of the acreage. He confirmed that none of the property is owned or optioned by developers. Development above the floodplain has been anticipated since the property was placed in the County's General Plan in 1993. The City should be interested in trails, historic farms, equestrian amenities, and other passive uses that can coexist with farming, as well as a large set aside for habitat and other environmental uses. The property owners support the expansion and the City's SOI to the Cosumnes River, as it is a natural boundary. It would further local control and establish a direct fiscal link between the area to be developed and the area to be preserved, as well as to preserve Elk Grove's historic and cultural heritage. The Joint Vision document describes permanent preservation through conservation easements of the floodplain land. Mr. Williams maintained that mandating these easements is de facto acquisition of private land. Mitigation requirements should not exceed those for any other development within the City and the property owners should be able to stack easements. The property owners would support the concept if the developer and floodplain land remained within the same jurisdiction. Property owners are in favor of the boundaries currently drawn in the proposed SOI application. Mr. Williams asserted that, if the floodplain is removed, planning principles and statements on mandated mitigation are invalid and should be Nikki Carpenter felt that the SOI application should be abandoned and the City should focus on solving its current challenges and infill construction prior to making any considerations to expand. She disagreed with staff's recommendation that the citizen committee be formed after the SOI application is approved, as she felt the Marilyn Flemmer, Chair of the Elk Grove South County Democratic Club, stated that removal of the floodplain from the SOI would best preserve the County HCP. The  come.  are solved.  deleted.  committee input would be useful throughout the process.  Elk Grove City Council Regular Meeting, April 14,2010 Page 10 of21    Club believes the floodplain would be best protected by a third party conservation Lynn Wheat stated that her comments during the outreach meetings were not recorded accurately by Planning, as identified in the staff report. She asked who would benefit from the SOI. She suggested that whoever gains financially should pay for the process. She inquired who the driving force was behind the SOI expansion. She questioned whether it is something the general public wants or would benefit from. She asked why the City and County did not make the MOU a Linda Beatti asked that the floodplain not be included in the SOI and the expansion Joe Daehling stated that he owned property on Grant Line Road and his ranch is under a Williamson Act contract. He believed the best steward of the area would be the City of Elk Grove. He pointed out that the Cosumnes River and floodplain is the groundwater recharge source upon which Elk Grove depends. He hoped the City would insist on being in control of its water source and in possession of at least the north side of the floodplain. He recommended that the Cosumnes River be the June Daehling recommended that the City, Cosumnes Community Services District, Elk Grove Unified School District, and the Historical Society partner together to use the area to provide an active learning park for students, as it would be a perfect site to study nature and history. She believed it would be in the best interest long-term for the control of floodplain and river to be in Elk Grove's jurisdiction, rather than the Eugene Rose maintained that those entrusted with representing the will of the people continue to represent special interests. He asked that the floodplain be Barbara Washburn stated that a SOI is designed to address areas that will be used for urban development, not lands that will remain agricultural or natural areas that are traditionally the domain of the County. She believed an Environmental Impact Report that includes the floodplain would be much more expensive and asserted that it would be fiscally irresponsible for the Council to take the City into a long expensive battle that would surely ensue if the floodplain is not removed from the Bill Kutzer, resident of Wilton, urged Council to remove the floodplain from the SOI  agency that would allow easements for farming.  binding document.  not be considered until the economy is more stable.  southern border of Elk Grove's SOI.  County.  removed from the SOI application.  SOI.  application.  Elk Grove City Council Regular Meeting, April 14,2010 Page 11of21    Linda Ford, Chair of Elk Grove Coalition Advocating Proper Planning, believed that Wilton Action Group's request to remove the floodplain from the SOI application is a fair compromise. The environmental reports say that there should be no development within a floodplain, yet they also state that building would be considered if mitigation measures were to take place, such as flood walls, levees, Louise Williams representing the Kleinsorge ranch expressed support for the proposed SOI. She believed if the City abandoned the floodplain land it would be a tremendous loss for the people of Elk Grove and future generations who could have Howard Sihner urged Council to proceed with caution and believed that more time and study would be necessary to ensure the correct action is taken. He hoped the southern border could become a recreational, ecological, and historical area. Lance Kleinsorge stated that his family has farmed and owned land in the floodplain for four generations. As it was passed on from one generation to another it was always known that the land would never be developed for commercial activities. He felt that the floodplain was a unique Elk Grove resource that requires proper management. He supported keeping the floodplain in the City's SOI. Pat Mahon stated that she is the third generation to live on Windmiller ranch on Grant Line Road. She felt that the current generation has an opportunity and responsibility to educate its children and grandchildren about the preservation of history and enjoyment of nature. The floodplain gives balance to the ranches and to the City of Elk Grove. Ms. Mahon believed that important future decisions regarding Bill Mosher reported that property owners of the Windmiller, Daehling, and Kleinsorge ranches discussed this matter at length and believe it is in their best interest for their property to be in the City of Elk Grove and urged Council to leave Dale Mahon, property owner of land in the proposed SOI, recalled that Elk Grove incorporated because its citizens wanted more control over local affairs, planning, and services. He stated that there has been insufficient discussion regarding water rights of the area and cautioned the Council about making a premature decision before reviewing all the facts. He felt that, if there was ever going to be development between Grant Line Road and the floodplain, it would make more sense for the City of Elk Grove to guide the development, rather than the County. He urged Council to let the EIR analysis proceed and felt certain that, in the end, it would be found in the best interest of Elk Grove for the SOI to extend to the river.  etc.  enjoyed the serene, natural environment.  the floodplain should be made by the City of Elk Grove.  the SOI boundary at the Cosumnes River.  Elk Grove City Council Regular Meeting, April 14, 2010 Page 12of21    Quida Mosher Garms, Mosher ranch property owner, stated that she wanted the future of her land to be controlled by one jurisdiction and one body of elected officials, i.e. the City of Elk Grove. She hoped that one day the residents of Elk Grove would be able to enjoy the bottom ground and river in a limited and controlled Daniel Speer, Wilton resident, claimed that the river is a regional resource and expressed concern about impacts if it were included in the City's SOI. He felt that a regional entity, such as the County, should manage the floodplain and river. Russell VanLobenSels, President of the Sacramento County Farm Bureau, explained that, in order for agriculture to remain viable, it needs land that is semi- isolated and separate from urban communities and trails. He maintained that the SOI expansion proposal erodes and encroaches all these needs. He urged Council to proceed in a manner that has the least impact on agriculture. Expansion should be based on credible growth projections, which clearly demonstrate the need and magnitude of expansion needed. Areas best suited for development should be targeted. It is preferred that agricultural resources in the area remain in the Kathy Lee addressed the City Attorney stating that she hoped due diligence was done to ensure that no Council Members, executive or Planning staff, have any business, family, financial, or real property interest in the land including any family trusts, limited partnerships, real estate interests or any other fiduciary interest in the land encompassing the SOI, the Cosumnes River basin or any adjoining properties, the transitional zones, or any other lands that may be impacted by the approval of All Council Members confirmed that they did not have a conflict of interest Charlotte Mitchell, representing Mitchell Farms, noted that there is a County Agricultural Commissioner and County Cooperative Extension that allows for the permitting and regulatory processes for her farm to produce a billion pounds of food each year for the region. She voiced concern about the land being placed in the Suzanne Pecci noted that during the City's "listening sessions" hundreds of questions were asked by attendees, but no answers have been provided. She maintained that the Cosumnes River is a regional resource and believed that the MOU was a non-enforceable document that either party could opt out of. Glenda Stewart, property owner, supported the transition zone proposed along Eschinger Road and hoped that the Council would seriously consider what  way.  County's jurisdiction.  the SOI application or any future annexation of the land.  pertaining to this matter.  City's SOI.  landowners prefer.  Elk Grove City Council Regular Meeting, April 14,2010 Page 13of21    George Phillips confirmed that the property owners of the Mosher, Kleinsorge, Daehling, and Mahon ranches do not have agreements with any developers regarding the development of their properties. These properties are currently within the Williamson Act and no one has filed a notice of non-renewal. The high ground portion of the property is within the Urban Services Boundary under the County's General Plan. The property owners request the boundary be extended to the north side of the river. They believe the City, through collaboration with the County, LAFCo, landowners, and the public can design a floodplain protection program as part of the SOI and MOU processes that can legally assure the permanent and enforceable protection of the floodplain area. He urged Council to allow the environmental process to proceed and preserve the floodplain for the rural heritage NOTE: The City Council recessed at 8:50 p.m. and reconvened at 9:03 p.m. with all Council Member Davis reported that there are only 30,000 jobs for a population of over 140,000, which is the worst jobs/housing imbalance in the Sacramento region. Strong policies need to be established that relate to the composition of new land that potentially will come in to the City; i.e. how much of it will be for jobs and how much for houses. He felt that the Cosumnes River Deer Creek floodplain on the east side of Highway 99 should be removed from SOI application, as he believed that leaving it in would cause distractions about the flood land and cause the City to lose its focus on growing local jobs and keeping existing neighborhoods strong and safe. Managing flood land would also be a liability and drain on time and resources. He expressed concern that, if the river and floodplain were placed next to urbanized land, it eventually would be sold and developed. He pointed out that this is precisely what happened in the Natomas area where houses were built in a floodplain. The believed the cost burden of managing the floodplain would be tremendous. Being that landowners do not want their property split, he suggested Vice Mayor Detrick noted that he was not yet a City Council Member when the SOI application was originally submitted to LAFCo. He believed it would be premature to make decisions at this point and stated that the market would likely not fully recover for another ten years. Mr. Detrick stated that he did not have enough information to support the original SOI or to make a recommendation at this time. He suspected that there was not enough commercial and industrial land to bring a sufficient number of jobs into the City. Planning cannot be undertaken until the results of the market study are known. Before a final decision is made on the floodplain there needs to be a complete understanding about flood control, habitat preservation, and water recharge. Once all stakeholders come together to determine the vision and assess the needs for the area, then it can be decided who  of Elk Grove as part of the City of Elk Grove.  Members present.  moving the boundary line back to Grant Line Road.  would best manage the floodplain.  Elk Grove City Council Regular Meeting, April 14, 2010 Page 14of21    Council Member Hume recalled that the original urban services boundaries discussion began with the County's General Plan in 1986, which was adopted in 1992. The original plan included a preferred option of where future development within the County should take place. It included the area south of the current Elk Grove city limits because of its proximity to two freeways, the sewer treatment plant, and because it was level ground that had been farmed with marginal soil conditions and lack of vernal pools. There was an influential developer at the time that preferred the Sunrise Douglas area. The County of Sacramento was granted surface water rights with respect to the American River; however, it was determined that the American River was too sensitive SO it was decided they could draw surface water once it was in the Sacramento River. To do this they worked with East Bay Municipal Services District (EBMUD) to build the Freeport intake facility. Water from the Freeport intake facility is to go toward future urbanization, some is to go into the Folsom canal to be used by EBMUD, and some is to be put into the Cosumnes River basin for water recharge and to encourage the return of the Cosumnes salmon. At that time the South Sacramento Habitat Conservation Plan (HCP) showed all the land south of Elk Grove as a receiving area with zero take for potential development. Elk Grove's General Plan, however, showed both areas on the east and west as future study areas. Elk Grove began working with the County of Sacramento and LAFCO to begin the process of delineating boundaries SO the land could be considered in the HCP. Mr. Hume emphasized that a SOI is not a preclusion to annexation, it is a precursor. A city does not ever have to annex into its SOI area. The purpose of the SOI is to state that the land is important to the City as it plans its future regionally in its contiguous parcels. A SOI allows for comprehensive planning of the entire area including areas intended to be urbanized, as well as areas intended to be preserved. The MOU is legally enforceable ifi it is made a part of the conditions of approval in the LAFCO process. The transition area would create equity in land value for owners of property by allowing them to have more than one unit on their large parcels. He was opposed to a build out threshold percentage and instead preferred that language be added relating to a ODS-to-nousing ratio and that projects brought forward be required to help with that balance. He expressed concern that, if planning does not occur regarding the interface with agriculture, it will not be accounted for and may suffer because of it. He suggested the condition of approval establish the proposed boundaries as the maximum area, which could not be increased at a future date. Ina answer to Council Member Cooper, Mr. Echiburu confirmed that a conservation Council Member Cooper stated he had originally hoped of having amenities near the river, such as a nature trail, that people could enjoy. He received communication from those who felt that a private entity or the landowners of the property could make those amenities if they wished to. Until this meeting, he had not heard from landowners who wanted the SOI boundary at the river. He was  easement could legally prevent building in the floodplain.  Elk Grove City Council Regular Meeting, April 14,2010 Page 15of21    adamantly opposed to ever building in the floodplain and felt that it should be memorialized, regardless of who manages the land. He noted that the market study results will help in making decisions regarding the SOI. He was not in favor of Mayor Scherman stated that the Council does not yet have all the information it needs to make a decision regarding this matter and to know what is in the best interest of the citizens of Elk Grove. She maintained that there has never been, nor ever will be, any intention to annex land in Wilton. She warned Wilton residents that they may regret not being under the jurisdiction of the City when efforts are made to build an Indian casino in their town. She also felt that Franklin should not be included in the City's SOI. She recommended the following language amendment in the MOU, IV Planning Principles, subsection 6 Floodplain Protection, "As such, future land planning shall not place development within the floodplain." She favored proceeding with the current SOI proposal and working with County, emphasizing the importance of taking sufficient time to be certain that actions ultimately taken are Council Member Cooper pointed out that people do not trust government and they want assurance that there will be no development in the floodplain area. Council Member Davis asserted that a SOI is about the intent to annex the land within it. He suggested that the Federal Emergency Management Agency (FEMA) Letter of Map Amendment and Letter of Map Revision-Based on Fill (LOMR-F) processes could easily change flood hazard maps. He felt that it would be a waste of money to conduct an environmental analysis of the floodplain, since everyone seems to be in agreement that it should not be developed. He maintained that the City Council did have enough information to make a decision at this time. Council Member Hume countered that a binding condition of approval would become part of the corporate documents of the City of Elk Grove. He objected to the intimation that FEMA map amendments are done without proper deliberation and in a deceptive manner. He pointed out that there is a four to five foot drop on the bluff, which clearly defines where the floodplain is. He explained that environmental analysis of the floodplain is needed to identify archeological and paleontologica. resources, as well as analyses of open space, farming, and habitat preservation areas. He reiterated that the SOI establishes that Elk Grove has an interest in the area, because what happens to the land is important to its citizens. A comprenensive, regional planning effort is critical to ensure the floodplain and river could be incorporated into a trails system, and contain passive recreational uses, continued agriculture, open space, habitat preservation, and groundwater recharge. He felt that it was not necessarily important whether the City or the County had jurisdiction over the floodplain, but that it gets taken into consideration and planned  moving the SOI boundary back to Grant Line Road.  correct and ini the best interest of the City of Elk Grove.  properly.  Elk Grove City Council Regular Meeting, April 14,2010 Page 16of21    Council Member Cooper recommended that, on the east side of Highway 99, the Inr reply to Vice Mayor Detrick, Mr. Echiburu estimated that the EIR could be Council Member Hume recommended that the MOU and a condition of approval at LAFCO stipulate that no annexation shall take place east of Highway 99 without a comprenensive plan in place for the floodplain, open space, habitat, and In answer to Council Member Davis, City Attorney Cochran confirmed that an easement cannot be undone, because it is a deed restriction. Conditions, covenants, and restrictions run with the land in perpetuity regardless of who owns the property. She stated that a deed restriction or an easement to (for example) the Nature Conservancy or American Farmland Trust could specify that agricultural production be continued, but no development could occur. She acknowledged there be conditions in the future under which an easement could be rendered invalid; however, a deed restriction or easement is the most failsafe method the law Motion: M/S Hume/Scherman that the SOI application process continue as currently proposed, that staff strengthen the MOU language and continue to work with the County and landowners within the area to develop a comprenensive plan and return to Council prior to the LAFCO hearing. The motion FAILED by the Motion: M/S Davis/Cooper to amend the Sphere of Influence application to remove the Cosumnes River Deer Creek floodplain. The motion passed by the Motion: M/S Hume/Cooper to waive rule of procedure not to consider new business after 10:00 p.m. and to proceed with the remainder of the agenda. The Agenda Item No. 10.2: Consider modernization and expansion of Utility User  SOI end at the urban services boundary. complete by the end of 2011.  conservation area.  currently provides.  following vote: Ayes: 2; Noes: 3 (Cooper, Davis, Detrick).  following vote: Ayes: 3; Noes: 2 (Hume, Scherman).  motion passed by the following vote: Ayes: 5; Noes: 0. Tax (UUT) Policy and reduction of Utility User Tax Rate  RECOMMENDATION:  Provide direction on the following items:  1) Modernization of the UUT communications language to reflect technological  advances and changes in state and federal law; 2) Inclusion of water usage in the UUT ordinance; 3) Reduction of the UUT rate from 2.5% to 2.25% or 2%; and  Elk Grove City Council Regular Meeting, April 14,2010 Page 17of21    4) Preparation of a Proposition 218 ballot measure, to be returned for Council With the aid of an overhead presentation (filed), Katy Baumbach, Budget Manager, reported that Elk Grove's Utility User Tax (UUT) policy was adopted from the County of Sacramento upon incorporation. It levees a 2.5% tax on gas, electric, communications, and sewer usages and is collected by utility companies and then remitted to the City. In the current fiscal year, the City anticipates nearly $3.5 million in general fund revenue from the UUT. The definition in the ordinance is outdated compared to the technology used today. Currently, as much as $600,000 in annual revenue is at risk if the City's UUT were challenged in court. Ms. Baumbach reported that, over half of the California agencies with UUT, also collect revenue from water usage. At its February 24 meeting, the City Council directed staff to conduct public outreach. Three public meetings were held and staff also met with the Sacramento Association of Realtors and the Elk Grove Police Officers Association. By broadening the tax base the City can afford to lower the tax rate. Ms. Baumbach reviewed proposals as were detailed in the staff report. She noted that the public meetings were sparsely attended and most citizens had stated that they were in favor of leaving the current policy unchanged. Some members of the public were concerned that moderization of the UUT language would affect email, internet, and other data services. Ms. Baumbach stated that it  consideration.  would pertain to digital phone service.  PUBLIC COMMENT:  Tim Hoy stated that the amount of money the City would be raising is more than the $600,000 risk. The proposal creates six ways to tax citizens, all of which he believed will eventually increase. He felt the proposal was crafted in a way that Inr reply to Mr. Hoy, City Attorney Cochran explained that, whenever a city extends, modifies, or otherwise changes a tax, it must be placed on the ballot. In order to modernize the definition in the UUT ordinance, it must also be placed on the ballot. Linda Beatti submitted a written statement (filed) and mentioned that she had attended one of the public meetings and asked for lawsuit citations; however, she never received a response from staff. She claimed that the public comments in the Bob Dayton reported that his utility bill shows the City is only getting 007% tax from Pacific Gas & Electric and 0121% from the Sacramento Municipal Utility District. He was opposed to adding water to the UUT. He asked Council to direct staff to verify that the City is getting the correct amount of tax from utilities, as he estimated  deceives the public.  staff report are incomplete ori in error.  ito could amount to over $2 million annually.  Elk Grove City Council Regular Meeting, April 14,2010 Page 18of21    Assistant City Manager Craig explained that there are non-taxable uses on utility bills. She assured Council that she would confirm utilities are being properly taxed. Council Member Cooper emphasized that public safety is the highest priority. He supported staff's recommendation in order to eliminate the risk to the City's general Council Member Hume pointed out that, according to the examples in the staff report, the only households that would have a savings from the proposed change are those with landline phones only, which is very rare. All other households will have a tax increase. He questioned the likelihood that Elk Grove is at risk from a lawsuit because they are filed by cell phone companies who are challenging cities City Attorney Cochran offered the following citation as an example of a relevant lawsuit: Oronoz V. County of Los Angeles Superior Court, Case No. BC334027, filed in 2005. She warned that the law has recently been changed to allow lawsuits to be Council Member Cooper pointed out that the increase in cell phones has also increased the number of 911 calls that the Police Department must respond to. Council Member Davis disclosed that he spoke with the Police Officers Association president about this matter. At the request of Council Member Davis, Dan Koontz stated he supported staff's proposal because it would not be worth the $600,000 risk to the general fund, which could negatively affect the Police Department. Motion: M/S Detrick/Davis directing staff to return to Council with a ballot measure proposal to modernize the UUT communications language and reduce the rate to 2.25%. The motion passed by the following vote: Ayes: 4; Noes:1 Agenda Item No. 10.3: Notice of Intent to Provide Additional Service Credit for  fund which supports law enforcement in the City.  taxing digital phone service, which Elk Grove is not currently doing.  filed without having to pay the tax first.  (Hume).  Specified Classification and Public Notice of Cost  RECOMMENDATION:  Receive and file the notice of intent to provide two years additional service credit benefits to specified classification and provide public notice of the potential costs and savings from implementing this program in accordance with CalPERS Laura Gill, City Manager, provided an overview of the staff report. She noted that, in order to file the Notice of Intent, the City has to demonstrate that it would provide savings in accordance with the California Public Employees' Retirement System  requirements.  Elk Grove City Council Regular Meeting, April 14,2010 Page 19of21    (CalPERS) rules. The savings would be achieved by the elimination of one vacant  Customer Service Specialist position.  PUBLIC COMMENT:  Nikki Carpenter believed that providing additional service credit would be a disservice to the community. Ms. Carpenter reviewed her public service history and noted that she did not receive such a benefit upon retirement. She reported that there were currently 146 pending investigations with CalPERS for claims where salaries were inflated prior to retirements and 98 similar investigations with the Linda Beattie voiced opposition to the proposal and stated that the funding should Inr reply to Council Member Cooper, City Attorney Cochran explained that the pending investigations are related to claims of increasing compensation during the last one to three years of employment in order to increase an employee's pension. She was not aware of any investigations pertaining to providing additional service In answer to Vice Mayor Detrick, City Manager Gill confirmed that the Customer Service Specialist position would be permanently eliminated from the budget Assistant City Manager Craig commented that a Customer Service Specialist In reply to Council Member Davis, City Manager Gill stated that the proposal would not increase the State's pension obligation because the City would be paying for the interest that CalPERS would ordinarily have earned. Human Resources Director Laura Brunson explained that CalPERS conducts an audit to ensure a savings is City Manager Gill reported that, due to streamlining efforts and better use of technology to increase productivity, the City Clerk's Office was able to achieve efficiencies which will allow for the permanent elimination of the Customer Service In answer to Mayor Scherman, City Clerk Blackston reported that the Customer In reply to Council Member Hume, Ms. Blackston confirmed that the office could continue to fully function with four full-time staff members and that there would be no reason to add a fifth position unless significant additional responsibilities were added to the office. In answer to Mr. Hume's inquiry, Ms. Blackston believed that  California State Teachers' Retirement System. be used toward the Police Department's budget.  credit.  resulting in a $70,000 a year savings.  position equates to less than half the salary of one Police Officer.  realized over time.  Specialist position.  Service Specialist position had been vacant for 18 months.  Elk Grove City Council Regular Meeting, April 14, 2010 Page 20 of21    changing from comprehensive summary minutes to action minutes would save a significant amount of time and could achieve a further reduction in staff equivalent Council Member Hume believed that the salary savings of $70,000 annually for an indefinite period would warrant the consideration of additional service credit.  to a half time position.  ADJOURNMENT  With no additional business to conduct, the April 14, 2010 City Council meeting was adjourned at 11:10 p.m. in memory of Dorothy Hrepich who provided lifelong service to the community, Albert J. Lopes, and Helen Barnes a long time educator  and mother of Dannetta Garcia.  DBhit SUSANJ. BLACKSTON, CITY CLERK  ATTEST:  1 - SOPHIA SCHERMAN, MAYOR  Elk Grove City Council Regular Meeting, April 14,2010 Page 21 of21