City Council Meeting

CITY OF LOS BANOS CITY COUNCIL MEETING MINUTES JUNE 21, 2017 ACTION MINUTES – These minutes are prepared to depict action taken for agenda items presented to the City Council. For greater detail of this meeting refer to the electronic media (CD and/or audio) kept as a permanent record. CALL TO ORDER: Mayor Villalta called the City Council Meeting to order at the hour of 7:00 p.m. PLEDGE OF ALLEGIANCE: Police Chief Brizzee led the pledge of allegiance. ROLL CALL – MEMBERS OF THE CITY COUNCIL PRESENT: Council Members Tom Faria, Daronica Johnson-Santos, Deborah Lewis, Scott Silveira, Mayor Michael Villalta; Absent: None. STAFF MEMBERS PRESENT: City Manager Terrazas, City Attorney Vaughn, City Clerk/Human Resources Director Mallonee, Police Chief Brizzee, City Treasurer/Accountant II Tomas, Finance Director Williams, Assistant Fire Chief Hurley, Public Works Director/City Engineer Fachin and Information Technology Director Spalding. CONSIDERATION OF APPROVAL OF AGENDA: Motion by Silveira, seconded by Faria to approve the City Council Meeting agenda as submitted. The motion carried by the affirmative action of all City Council Members present. PRESENTATIONS – PROCLAMATION RECOGNIZING LOS BANOS POLICE OFFICER EDUARDO SOLIS AND POLICE SERGEANT IVAN MENDEZ (MEDALS OF VALOR). Police Chief Brizzee gave a brief background on the two recipients and explained how the Medal of Valor is the highest honor at the Los Banos Police Department. Mayor Villalta and Members of the City Council presented the Proclamations/Medals of Valor to Police Officer Solis and Police Sergeant Mendez. Mayor Villalta called for a 5 minute recess to allow for pictures of this occasion. PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE CITY COUNCIL MEMBERS ON ANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THE JURISDICTION OF THE CITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BE TAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5) MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THE COUNCIL CHAMBER INFORMATIONAL TABLE. BERTHA FARIA, Los Banos Chamber of Commerce, spoke regarding the grand opening of Eclipse Firearm and Training with a ribbon cutting the previous Friday, they are located at 840 6th Street and the owner’s name is Sonny Lee, happy to welcome Rodriguez Financial Services and Paulina Torres who is a residential associate, enjoyed the Fourth Annual Dad’s Night Out the previous Saturday and welcomed over forty vehicles to downtown, it was a pleasure for her to see the community come out and enjoy the car show and live music, Farm to Plaza Tuesdays have been a great success, there was a little hiatus due to the heat but the next Farm to Plaza Tuesday will be on June 27, 2017, come out every Tuesday and enjoy vendors, fresh produce and food vendors every Tuesday, local Assembly member Adam Gray will hold a coffee event on Friday June 23, 2017 from 10:00 a.m. to 11:00 a.m. at Eddie’s Famous Café, important legislative issues can be discussed with him at this event, on Saturday from 10:00 a.m. to 2:00 p.m. the Los Banos Elks Club will hold their annual car show at 565 E Street, advance registration for this event is $25 and the day of the event the registration will be $30, contact Stan Avis at 617-5054 for more information, don’t forget to purchase your Veterans Parade grocery grab tickets from our VFW, tickets are $5 each or five tickets for $20, the public is invited to attend the long awaited announcement of the lucky winner for the July 15, 2017 $500 grocery grab at Save Mart on June 30, 2017, all proceeds will support the Los Banos Veterans Parade, the June Mixer will be held by Infinity Staffing on June 22, 2017 beginning at 5:30 p.m. and there will also be a ribbon cutting inviting them to membership, thanked Council; GENEVA BRETT, Los Banos, representing the Los Banos Veterans Day Parade Committee, spoke regarding the grocery grab Veterans Parade fundraiser and how the winner will get five minutes to grab whatever they can excluding items from the pharmacy, alcoholic items, tobacco items, and gift cards, tickets are available for purchase at Pearson’s Jewelers, spoke regarding the Veterans Day Parade and how participation in the event is free, the Grand Marshals this year are those veterans from the Operation Desert Shield and Operation Desert Storm, the theme this year will be “Welcome Home from the Sandbox,” she asked the public to help identify veterans who may have participated in these wars and invite them to be the Grand Marshals for this event, more information can be found on Facebook, talk to the VFW Commander or Alan Cotta; STAN SILVA, Los Banos, spoke at the June 7, 2017 meeting about a few things and wanted to add to what he had previously said regarding the 5% versus 2.5% cost of living increases for the unrepresented miscellaneous City employees, during the winter time and especially during the holiday season, if your sewer gets backed up, these guys come out and get you back up and going again, or at 2:00 in the morning if there is a main break, these guys are out there, if there is a call about graffiti, these guys clean it up, it just doesn’t seem right that these employees aren’t getting the same parody as police officers, spoke to all the work these employees have to do to maintain all the sewer and water functions the community needs, these employees are out working in the heat and in the cold and they are dedicated, they aren’t asking for higher pay, but they should be treated the same, asked Council to consider looking at these employees are realizing that the cost of living hits everyone the same, thanked Council and hopes they will look at this issue closer, thanked Council. No one else came forward to speak and the public forum was closed. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Motion by Lewis, seconded by Faria to approve the consent agenda as follows: Check Register for #205219 – #205398 in the Amount of $489,091.67; Minutes for the June 7, 2017 City Council Meeting; City Council Resolution No. 5866 – Awarding Contract for Legal Advertising to the Los Banos Enterprise for Fiscal Year Ending June 30, 2018 and Authorizing and Directing the City Manager to Execute Agreement.; City Council Resolution No. 5867 – Accepting Grant of Public Use Easement from O’Reilly Auto Enterprises, LLC for Assessor’s Parcel Numbers 026-044-041, 026-044-042, 026-044- 043, 026-044-044 Located at the Northwest Corner of Highway 152 and Sixth Street; City Council Resolution No. 5868 – Amending the Fiscal Year 2016-2017 Budget by Increasing the Appropriation Amount in the Federal Grant Fund for Both Revenues and Expenditures in the Amount of $5,000 for Reimbursement of Overtime [Organized Crime Drug Enforcement Task Force (OCDETF) Grant Overtime] Expenses. The motion carried by the affirmative of all Council Members present. LOS BANOS COMMUNITY SERVICE NETWORK GRANT PRESENTATION – BY JEFF KETTERING, MERCED COUNTY CHIEF PROBATION OFFICER. Mr. Kettering spoke regarding the $960,667 grant awarded to the Merced County Probation Department targeting youth in Los Banos and the history behind it. Council Member Lewis asked what types of organizations he is looking at to provide the services noted in the grant for which Mr. Kettering said anyone can respond to the Request for Proposal that they will be putting out. He further explained that services provided in the grant will be individual counseling, mentoring services, cognitive behavioral therapy in a group setting. The only organization that they know of for sure at this point that will be participating is an organization by the name of El Joven Noble which provides culturally competent group counseling to the youth and young adults in the community. Council Member Lewis asked how these organizations need to reach of if they want to participate for which Mr. Kettering explained that once the RFP (request for proposal) goes out, anyone from the public is able to reach out and they will be contacted. Council Member Johnson-Santos inquired about the age limit and whether there is some sort of monitoring system to identify which kids may need these types of services for which Mr. Kettering explained that because some of these services could be provided under the same roof, there has to be some caution mixing ages. For example, putting a thirteen year old in the same service session as a twenty-two year (possibly convicted felon) could rub off on the thirteen year old in a negative manner. He stated that these services aren’t necessarily targeted at the individuals who had a one-time offense but more to those who are constantly getting caught up in the justice system. Mayor Pro Tem Silviera asked if the organizations would have to be a non-profit in order to apply for this grant for which Mr. Kettering confirmed. Mayor Villalta asked if there would be some sort of tracking regarding recidivism to determine which organization has the best practice for which Mr. Kettering explained that they have contracted with CSU Stanislaus and a researcher there will be tracking all the statistics and data regarding recidivism. It is required under the conditions of the grant anyways. Mayor Villalta thinks this is a good idea so that way the organizations with low recidivism rates can be analyzed and their methods can be expanded in order to keep these rates down. Mayor Villalta further asked if it would be possible to get the school system involved so that the councilors at school are able to track their attendance and grades to see whether those are improving as well for which Mr. Kettering confirmed it is possible. There is some work that needs to be done with putting that in place due to confidentiality issues regarding minors, but it can be done. Informational item only, no action taken. PUBLIC HEARING – TO RECEIVE PUBLIC COMMENT AND CONSIDERATION OF THE APPROPRIATION LIMITATION FOR THE 2017-2018 FISCAL YEAR (FY); CITY COUNCIL RESOLUTION NO. 5869 – SETTING THE TAX RELATED APPROPRIATION LIMIT IN COMPLIANCE WITH PROPOSITION 4 AND PROPOSITION 111 FOR THE 2017-2018 FY. Finance Director Williams presented the staff report, which included a PowerPoint presentation. Council Member Faria stated that California says the cost of living is only increasing slightly over 1% for which Finance Director Williams confirmed. Council Member Faria asked if there are cities that have to pass this in order not to overspend themselves for which Finance Director Williams stated that everyone legally has to pass this. She further stated that there is a two year platform and explained that if there is overspending after the two years then the money has to be returned. Mayor Villalta opened the public hearing. No one came forward to speak and the public hearing was closed. Motion by Faria, seconded by Silveira to adopt City Council Resolution No. 5869 – Setting the Tax Related Appropriation Limit in Compliance with Proposition 4 and Proposition 111 for the 2017-2018 FY. The motion carried by the affirmative action of all Council Members present. PUBLIC HEARING – TO RECEIVE PUBLIC COMMENT AND CONSIDERATION OF THE 2017-2018 FISCAL YEAR (FY) BUDGET; CITY COUNCIL RESOLUTION NO. 5870 – ADOPTING THE 2017-2018 FY BUDGET, INCLUDING EMPLOYEE SALARY SCHEDULE (DIVISION 4) OF LOS BANOS POLICY & PROCEDURES MANUAL AND CAPITAL IMPROVEMENT PLAN AND COMMIT FUNDS FOR PUBLIC SAFETY FLEET REPLACEMENT. Finance Director Williams presented the staff report, which included a PowerPoint presentation. Council Member Faria is pleased to see that we can go from 2.5% to 3% for the COLA (cost of living) for the unrepresented employees. He doesn’t like to use the word “miscellaneous” when speaking of these employees as he prefers to identify them as vital services. He is very concerned about what PERS is doing to the City and how the general fund isn’t growing all that fast from one year to the next. He knows the ratio of police personnel to the City’s population is very low and that the Public Works employees are also taking on a lot of extra work. He reiterated how he doesn’t believe that these unrepresented employees should be called miscellaneous because they aren’t. He further commended the Finance Department for all the work they have done to come up with these numbers. He cannot support growth that the City cannot support. Mayor Pro Tem Silveira asked what our total unfunded liability amount is for which Finance Director Williams answered approximately $20 million. Mayor Villalta asked as far as our liability with employees as far as PERS and the health insurance retirement, are we still in the high 80’s for which Finance Director Williams stated with the current employees she believes on the average of the three tiers it is still in the high 80’s. She believes the health retirees numbers are lower than that, closer to the 70’s. Los Banos is doing well with that. Mayor Pro Tem Silveira asked if these numbers are assuming no new personnel for which Finance Director Williams says these numbers are assuming status quo. It’s assuming everybody stays where they are and they grow where their position allows them to grow. It does take into consideration step increases and a slight COLA increase. Council Member Faria stated that a couple years ago we went from 5 steps to 6 steps regarding step increases in positions and he would like to see more steps added for rewarded longevity. He would like staff to look into the matter further for the future. Finance Director Williams explained that longevity has been done twice in the last five years and that the City does it when affordable. Council Member Faria reiterated the fact that the City’s population is growing faster than the general fund is and so the faster the population grows, the heavier the work load for the employees and the City isn’t making enough money to pay for the heavier work load and that bothers him. Mayor Villalta stated that he is asked by the public why the City is allowing more houses to be built, the budget reflects what the City is doing. These properties were approved long before he and Council Member Faria were even a part of Council and the Water and Wastewater Master Plans were considered at that time. These plans took into consideration all the land that was annexed to the City fifteen years ago. These developers have an agreement with the City and these agreements cannot be changed from Council to Council which is why they have the right to build on those lots that are still available for development. There is water and wastewater available for these developments because they were considered in the Master Plans fifteen years ago. The development of these homes cannot be stopped unless they don’t meet City standards. Council Member Lewis stated that under revenue it speaks about the purchase of water meters, in the fees that we collect from developers on these lots, is there something built in there to cover the cost of that or does the City have to cover that cost for which Public Works Director/City Engineer Fachin explained that each new home buys the water meter as part of the permit process. Mayor Villalta asked Public Works Director/City Engineer Fachin if at some point when we have an idea of what Measure V is going to produce for the local funds, he would like at some point to get an estimate of how much a street would cost over by the airport in the state streets because those poor people don’t have sidewalks. He doesn’t know what it involves with City right-of-way or how that’s done. Public Works Director/City Engineer Fachin says that currently we have the first five years of Measure V funds preliminarily committed. What they committed as a Staff was improving the arterials and the collectors in the City because they are in bad shape and not looking at a new project until some of those are taken care of. Next year design and preparation for a $1.2 million worth of street work and the third year we will be preparing for $1.4 million of street work. Approximately $1,800 will be left in the fifth year after all of this. These numbers reflect what staff has committed to. Local streets are not being done. Mayor Villalta requested if that someday Staff can calculate and determine how much something like that would cost. He further asked if those numbers include the 20% for other modes of transportation for which Public Works Director/City Engineer Fachin confirmed and said the 20% will be used for all sidewalk replacements and all the capital improvement projects. He said he will work on a preliminary cost for the project the Mayor spoke of and would report back. Mayor Pro Tem Silveira appreciates that Staff has done all the hard work of figuring out what Measure V funding will be used for, but he feels that Council should have been a part of having a say in what some of the priority projects are. He spoke to how he went out and spoke to the public about Measure V and told people that Council would have a say in how the funds will be used and he would like that to happen at some point. Public Works Director/City Engineer stated there will be a workshop held regarding transportation needs and funding, hopefully before the end of the year. Some of the set aside money was spent on the K Street Storm Drain, but no other money from that fund is planning on being spent until the Spring. There will be ample time during that workshop to change direction if need be. All they were doing was trying to get some direction for the budget. Council Member Lewis echoed Mayor Pro Tem Silveira’s comments regarding Council’s input on any major projects. Staff works hard to give Council their recommendation and that is usually the path Council goes down. This Measure V Fund is very important and she shares the same concerns as Mayor Villalta regarding those residences that haven’t had sidewalks, handicap access, or paths to their driveways for years. It brings concern to her when she is driving down those streets and sees kids walking in the street trying to get to the bus stop. She would also like to see some reconsideration for that area and to look at whether any of the Measure V money could be used to provide those missing amenities to that community. This is something she feels should have been done a long time ago. She’s not saying that the other projects staff has mentioned doesn’t need to be done, but she is looking at young people’s lives and a community who has been living without the opportunity to walk without a sidewalk for many years. City Manager Terrazas stated that this is the City’s first Capital Improvement Plan and it is a work in progress to preserve the City’s infrastructure. He does agree that Staff does need Council direction in regards to Measure V projects and capital improvement projects which is why there will be a workshop. Mayor Villalta opened the public hearing. MIKE SEEBA, Los Banos, representing himself and other miscellaneous employees of the City, they are aware that a 3% COLA is being proposed, at the May 30, 2017 budget study workshop they asked that recommended promotions of Public Works staff be authorized and an equitable salary adjustment of 5%, from that meeting he and other employees determined that the organizational study was aimed at Public Works, most of the other City departments will have already been reorganized, the Finance Department is requesting one promotion, Human Resources is requesting one reclassification, the Fire Department is requesting one reclassification, these positions are newly created and come with significant salary increases, all proposed Public Works promotions are being excluded, some staff has been stalled in their current position since the economic downturn, employees are performing work above their position and for the most part willingly with the hopes of advancement and are still denied, the employees that are receiving a 4% giveback and a 1% COLA are also receiving a 5% salary increase, an employee’s base salary is the number used in the formula for retirement, spoke to how certain positions are funded and through which funds, there is inequity in the salaries of these miscellaneous employees, believes this request is a reasonable business decision, the requests are for a 5% COLA increase, authorize recommended promotions of Public Works staff just as is being done for the Finance Department, Human Resources, and the Fire Department, he believes they have been respectful in their presentations, thanked Council for their time and consideration. No one came forward to speak and the public hearing was closed. Motion by Silveira, seconded by Johnson-Santos to adopt City Council Resolution No. 5870 – Adopting the 2017-2018 FY Budget, Including Employee Salary Schedule (Division 4) of Los Banos Policy & Procedures Manual and Capital Improvement Plan and Commit Funds for Public Safety Fleet Replacement. Motion by Faria to amend the motion to direct staff to continue to pursue financials to see if the COLA could be increased a bit more for miscellaneous employees, seconded by Lewis and carried by the following roll call vote: AYES: Faria, Johnson-Santos, Lewis, Villalta; NOES: Silveira; ABSENT: None. Mayor Pro Tem Silveira wished to make a comment before the vote on the amended motion. He addressed the present Public Works employees and says he appreciates the work they do and understands where they are coming from. He wishes these issues would have been ironed out ahead of time and doesn’t know who to blame for that. He hasn’t seen a list of what positions the Public Works department would like to see increased. The fiscal health of the City is what is most important to him. He doesn’t want these employees to think for a second that they are worth less than others. He feels as though all these issues should have been brought up longer than when it was. The 3% COLA is 3% more than what they are getting today. He just doesn’t like the idea of going back and trying to change a budget that has been very thoroughly worked on by a lot of people for months now. It doesn’t make sense to him to try to find more money in a budget that has already been worked out. Council Member Lewis stated if she understands correctly then she doesn’t think this Council is voting for some hard fast rule that this money is going to be available. Staff has been asked to look and if it’s feasible then it will be done but if it’s not then it won’t. She has been a government employee all her life and as a regular working employee, her raises weren’t always comparable to other employees’. It didn’t’ make her happy, but she dealt with it and continued to do her job. She doesn’t believe the recommendation on this dais is an unreasonable request and it also doesn’t’ mean that it may happen. Finance Director Williams confirmed that Staff has been working very hard in the budget. Certain things can be cut out so other things can be added. Her suggestion to Council is to adopt the budget and take a look at this again at midyear. If numbers come in differently than expected, then changes can be made. Her understanding from what Council is saying is that they want her to go back and once again review her numbers in the budget. Mayor Villalta is fine with adopting the budget as is and look at it midyear. This budget needs to be adopted before July 1, 2017 or there will be a bunch of paper work that needs to be done and no bills will be able to be paid after July 1, 2017. Council Member Faria stated that his motion was not to wait for a midyear review. His motion was to approve the budget tonight to keep the City functioning and to direct Staff to immediately go to work on trying to find some more money. That motion was made, seconded, and approved. A midyear budget review is six months down the road and that is too long. If more work can find some more money, he wants Staff to do so. There is no date certain, but he doesn’t want to wait until the midyear budget review. He made a comment to Council Member Silveira and stated that he had been on his side. He gave a background of his father’s family’s work history and his mother’s family’s work history. He understands what it’s like to be on both sides of the work world because of his childhood experiences with his family and their backgrounds. Public Works took a hit many years ago and has not recovered. The other departments suffered also but experienced recovery and relief. The City has also grown by 10%. He understands that it’s a lot of hard work but would like staff to look for more money. Council Member Johnson-Santos asked if at the review of the midyear budget if there happens to be money found, would it not be utilized until the next fiscal year for which Finance Director Williams stated they could adjust the budget at any time. Usually the midyear budget is done in February or March because property taxes are collected in January, but at times things can be retroactive back to January. Finance Director Williams wanted to remind Council that unrepresented miscellaneous employees do not only include Public Works employees and it includes more than just the enterprise funds; it also includes the general fund and that is where the biggest problem is right now. She gave some examples of the other employees it includes such as herself, her finance staff, the Community & Economic Development Department, etc. The 3% puts these employees at the same level that was given to the fire department for the 1% pension swap. She briefly described the pay increases of the Public Works employees in the previous few years. Everyone is on different playing fields, but they took that route as being the best interest of the financials of the City. She further addressed the additions of new positions to certain departments and explained that these departments have waited their turn for these changes. She believes the budget is fair and would, again, ask Council to adopt the budget and consider waiting to make any changes until the mid-year budget review. Council Member Johnson-Santos commented that she feels for the unrepresented miscellaneous employees. She agrees that the best option would be to stick with the proposed budget and reexamine it at midyear. Mayor Pro Tem Silveira wants to address the motion that was made as he feels it was unclear. Reexamining the budget at midyear is not a part of the motion that Council Member Faria presented. There is no timeline. He misunderstood what Council Member Faria wanted and thought he did not want to pass the budget. City Manager Terrazas spoke to how the move from 2.5% to 3% was a move that he and other staff supported and felt that they could recommend to Council. If they had felt the 5% number could have been supported, that is the number they would have presented. The only thing to consider regarding the organizational study is that the results could come up around midyear as well. This study is focused on the organization as a whole and not just on Public Works. He believes there are different ways of doing things in the organization and is also looking forward to engaging employees in the organization. Council Member Faria stated that this is how good government works, through conversation. When the conversation stops, nothing gets resolved. The Council, the staff and the residents are working together to get things done. The amended motion carried by the following roll call vote: AYES: Faria, Johnson- Santos, Lewis, Silveira, Villalta; NOES: None; ABSENT: None. PUBLIC HEARING – TO RECEIVE PUBLIC COMMENT AND CONSIDERATION OF AN AMENDMENTS TO ARTICLE 41, CHAPTER 3, TITLE 9, SPECIAL EVENTS ORDINANCE AND SPECIAL EVENT FEES; ORDINANCE NO. 1157 – AMENDING SECTION 9-3.411 OF ARTICLE 41, CHAPTER 3 TO TITLE 9 OF THE LOS BANOS MUNICIPAL CODE RELATING TO SPECIAL EVENTS ON PUBLIC PROPERTY (SECOND READING & ADOPTION); CITY COUNCIL RESOLUTION NO. 5865– ESTABLISHING A POLICY REGARDING WAIVER OR PARTIAL WAIVER OF DEPARTMENTAL SERVICE CHARGES RELATIVE TO SPECIAL EVENTS; CITY COUNCIL RESOLUTION NO. 5871 – ESTABLISHING DEPARTMENTAL SERVICE CHARGE FEES RELATIVE TO SPECIAL EVENTS. Council Member Faria excused himself from this item as his wife is the Executive Director of the Los Banos Chamber of Commerce. He left his seat at the dais and exited the Council Chambers. Community & Economic Development Director presented the staff report, which included a PowerPoint presentation. Council Member Lewis spoke Exhibit A and wanted to know how the City is going to calculate charges if a religious procession is a little longer than the 1.25 miles, for example two miles; is the City going to charge them the $317 and then look at incremental charges thereafter, for which Community & Economic Development Director Elms confirmed that they would then get with the Police Department to determine if extra officers will be needed since the length of the route is longer or if that void would be filled in by VITAL volunteers which would then make there be no extra cost. It would be up to the Police Department to determine what extra services would be needed or not. Council Member Lewis asked City Attorney Vaughn whether some sort of language would need to be added to the ordinance regarding the base rate and the excess fees in relation to the route length for which he said if the policy is clear than it need not be changed. Community & Economic Development Director Elms read a portion of an attachment to the ordinance which addresses this issue. Those fees would be subject to a cost of living increase as approved by Council as well. Mayor Villalta opened the public hearing. BERTHA FARIA, Los Banos Chamber of Commerce, thanked staff for all the hard work, the compromise, and the partnership that has gone into this ordinance, putting together the stakeholders group was a very good idea, it will be very nice putting together events without not knowing what the cost will be, thanked Council. No one else came forward to speak and the public hearing was closed. Motion by Silveira, seconded by Johnson-Santos to waive the second reading of Ordinance No. 1157 – Amending Section 9-3.411 of Article 41, Chapter 3 to Title 9 of the Los Banos Municipal Code Relating to Special Events on Public Property. The motion carried by the affirmative action of all Council Members present; ABSTAIN: Faria. Motion by Silveira, seconded by Johnson-Santos to adopt Ordinance No. 1157 – Amending Section 9-3.411 of Article 41, Chapter 3 to Title 9 of the Los Banos Municipal Code Relating to Special Events on Public Property. The motion carried by the following roll call vote: AYES: Johnson-Santos, Lewis, Silveira, Villalta; NOES: None; ABSENT: None; ABSTAIN: Faria. Motion by Silveira, seconded by Johnson-Santos to adopt City Council Resolution No. 5865 – Establishing a Policy Regarding Waiver or Partial Waiver of Departmental Service Charges Relative to Special Events. The motion carried by the affirmative action of all Council Members present; ABSTAIN: Faria. Motion by Silveira, seconded by Johnson-Santos to adopt City Council Resolution No. 5871 – Establishing Departmental Service Charge Fees Relative to Special Events. The motion carried by the affirmative action of all Council Members present; ABSTAIN: Faria. Council Member Faria returned to the Council Chambers and his seat at the dais. CONSIDERATION OF APPROVAL OF GENERAL PLAN AMENDMENT #2016-02, ZONE CHANGE #2016-02, AND MITIGATED NEGATIVE DECLARATION (MND) (SCH#2017021033). THE PROJECT PROPOSAL IS FOR THE GENERAL PLAN AMENDMENT AND REZONE OF SEVEN (7) PARCELS CURRENTLY DESIGNATED PROFESSIONAL OFFICE (P-O) INTO MEDIUM DENSITY RESIDENTIAL (R-2) ON 1.2 ACRES AND TO SUBDIVIDE SEVEN (7) EXISTING PARCELS INTO ELEVEN (11) PARCELS FOR THE DEVELOPMENT OF 11 DETACHED SINGLE-FAMILY RESIDENTIAL UNITS. THE PROJECT SITE IS LOCATED ON THE EAST SIDE OF DELAWARE AVENUE BETWEEN PINE STREET AND MADRONE STREET, MORE SPECIFICALLY IDENTIFIED AS ASSESSOR’S PARCEL NUMBERS: 027-214-001, - 002, -003, -004, -005, -006, AND -007. [SUNSET HILLS DEVELOPMENT] (PUBLIC HEARING WAS CLOSED ON APRIL 19, 2017); CITY COUNCIL RESOLUTION NO. 5857 – APPROVING MITIGATED NEGATIVE DECLARATION (SCH#20170210033) AND MITIGATION MONITORING/REPORTING PLAN FOR SUNSET HILLS DEVELOPMENT LOCATED ON THE EAST SIDE OF DELAWARE AVENUE BETWEEN PINE STREET AND MADRONE STREET, MORE SPECIFICALLY IDENTIFIED AS ASSESSOR’S PARCEL NUMBERS 027-214-001, -002, -003, -004, - 005, -006, AND -007; CITY COUNCIL RESOLUTION NO. 5858 – APPROVING GENERAL PLAN AMENDMENT #2016-02 TO REDESIGNATE PROPERTIES IDENTIFIED AS ASSESSOR’S PARCEL NUMBERS 027-214-001, -002, -003, -004, - 005, -006, AND -007 FROM PROFESSIONAL OFFICE (P-O) TO MEDIUM DENSITY RESIDENTIAL (R-2); ORDINANCE NO. 1154 – AMENDING THE OFFICIAL ZONING MAP BY REZONING PROPERTY LOCATED ON ASSESSOR’S PARCEL NUMBERS 027-214-001, -002, -003, -004, -005, -006, AND -007 FROM PROFESSIONAL OFFICE (P-O) TO MEDIUM DENSITY RESIDENTIAL (R-2) (SECOND READING & ADOPTION). Mayor Villalta excused himself from this item, as he owns property within 500 feet of the agenda item up for discussion. City Attorney Vaughn also excused himself as he has represented the applicant for this agenda item on several matters within the last twelve (12) months. It was noted that Mayor Pro Tem Silveira will be reading and running this item as the Mayor abstains. Mayor Villalta and City Attorney Vaughn left their seats at the dais and exited the Council Chambers. Council Member Faria returned to the Council Chambers and took his seat at the dais. Community & Economic Development Director Elms presented the staff report, which included a PowerPoint presentation. Motion by Lewis, seconded by Johnson-Santos to approve City Council Resolution No. 5857 – Approving Mitigated Negative Declaration (SCH#20170210033) and Mitigation Monitoring/Reporting Plan for Sunset Hills Development Located on the East Side of Delaware Avenue between Pine Street and Madrone Street, More Specifically Identified as Assessor’s Parcel Numbers 027-214-001, -002, -003, -004, -005, -006, and -007. The motion carried by the affirmative action of the majority of the Council Members present; AYES: Johnson-Santos, Lewis, Silveira, NOES: Faria; ABSTAIN: Villalta. Motion by Lewis, seconded by Johnson-Santos to adopt City Council Resolution No. 5858 – Approving General Plan Amendment #2016-02 to Redesignate Properties Identified as Assessor’s Parcel Numbers 027-214-001, -002, -003, -004, -005, -006, and -007 from Professional Office (P-O) to Medium Density Residential (R-2). The motion carried by the affirmative action of the majority of the Council Members present; AYES: Johnson-Santos, Lewis, Silveira, NOES: Faria; ABSTAIN: Villalta. Motion by Lewis, seconded by Johnson-Santos to waive the second reading of Ordinance No. 1154 – Amending the Official Zoning Map by Rezoning Property Located on Assessor’s Parcel Numbers 027-214-001, -002, -003, -004, -005, -006, and -007 from Professional Office (P-O) to Medium Density Residential (R-2). The motion carried by the affirmative action of all Council Members present; ABSTAIN: Villalta. Motion by Lewis, seconded by Johnson-Santos to adopt Ordinance No. 1154 – Amending the Official Zoning Map by Rezoning Property Located on Assessor’s Parcel Numbers 027-214-001, -002, -003, -004, -005, -006, and -007 from Professional Office (P-O) to Medium Density Residential (R-2). The motion carried by the following roll call vote: AYES: Johnson-Santos, Lewis, Silveira; NOES: Faria; ABSENT: None; ABSTAIN: Villalta. Mayor Villalta and City Attorney Vaughn returned to the Council Chambers and their seats at the dais. CANCELLATION OF THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR WEDNESDAY, JULY 5, 2017 DUE TO THE 4TH OF JULY HOLIDAY. Motion by Faria, seconded by Lewis to cancel the July 5, 2017 regular City Council Meeting due to the 4th of July holiday. The motion carried by the affirmative action of all Council Members present. ADVISEMENT OF PUBLIC NOTICES (One Report). Community & Economic Development Director Elms stated the Planning Commission will hold a public hearing on June 28, 2017 at 7:00 p.m. in the Council Chambers regarding the Los Banos general plan land resources amendment and draft subsequent environmental impact report. She noted there was one response letter received in regard to this item and that she would be providing a response. CITY MANAGER REPORT. City Manager Terrazas stated he had two items to report. Items discussed are stated below. REPORT PURSUANT TO GOVERNMENT CODE SECTION 54953(C)(3) EXECUTIVE COMPENSATION: POLICE CHIEF. City Manager Terrazas stated that on June 5, 2017, based upon my performance review, the Police Chief salary was increased to $158,148 annually retroactive to May 16, 2017. REPORT PURSUANT TO GOVERNMENT CODE SECTION 54953(C)(3) EXECUTIVE COMPENSATION: THE CITY COUNCIL, AS PART OF AGENDA ITEM 8 B 1), ADOPTED THE 2017-2018 FISCAL YEAR BUDGET WHICH INCLUDED APPROVING A THREE PERCENT (3%) SALARY INCREASE FOR UNREPRESENTED/MISCELLANEOUS FULL-TIME EMPLOYEES WHICH INCLUDE THE CITY MANAGER AND DEPARTMENT HEADS. CITY COUNCIL MEMBER REPORTS. SCOTT SILVEIRA: Congratulated Officer Solis and Sergeant Mendez for their jobs well done and for their awards. He thanked department heads and budget staff for all their work – Kim, Rosemarie, Sarah and Sonya. At the end of the day, we passed a budget but it is an unbalanced budget. We are spending more than what we are bringing in. He understands that some of these things were one-time projects that needed to be done, but if you keep spending more than what you are bringing in, eventually there won’t be that reserve fund anymore. By Resolution, this Council will not go below a 30% general fund reserve. He reiterated how the unrepresented miscellaneous employees do not only consist of Public Works employees. He emphasized how the general fund is not the only thing affected by increases. He looks forward to having conversations with some of the Public Works employees one on one so he can explain his position on the issue. He doesn’t want these employees to think that he believes they don’t do a good job or conduct hard work, because he knows they work hard. The CalPERS issue is going to put the City sideways and until they figure out a way that the revenues get higher than what the expenses are, it’s going to be a scary situation. TOM FARIA: Congratulated the DES festa as it was as big and beautiful as always. Many of the City employees work on the festa and also directly on the streets to make that parade safe. There will be another celebration at Our Lady of Mount Carmel that is sponsored primarily by the Italian community and that will be in July. They have a three day celebration and serve stew at the DES hall in the afternoon. Tonight was about work and working people. He gets a little emotional because his father the tradesman, the truck driver was quite well-known in his career. He gave a brief background of his father’s career accomplishments. He had to quit work early because of a back injury and found out his company hadn’t taken care of his pension. He happened to be going to school at one of the most expensive schools at the same time as all of this happened so he had to do multiple things to pay for college. He learned the value of work, as did my wife. The way you show appreciation for work is by paying people. The general fund isn’t growing fast enough. There are certain things that cannot be changed, but rezoning and new annexations can be stopped. He feels that it’s the responsibility of the City to take care of its employees. He has asked staff to take a look at future financial impact of any new housing and any other projects being presented to Council. In the next couple weeks he and his wife will be grandparents again to the first boy child to the Faria clan. Congratulated his daughter, Gabriella, and hopes all goes well. DARONICA JOHNSON-SANTOS: She is thankful for the invitation for the Flag Day event. Thanked Sonya for reviewing the budget with her on the side. She wanted to explain her comment as “feeling for” the unrepresented employees during that particular presentation. What she meant is that she works three jobs. She meant that she completely understands their stance on things. Staff has done a good job and she believes they are doing the right thing as of now. DEBORAH LEWIS: Congratulated Officer Solis and Sergeant Mendez on their jobs well done and their heroic acts. Thanked all departments in the City for doing their jobs well and keeping the City running safe and smoothly. She, too, worked three jobs to take care of herself and her family. When finances need to be augmented, you go out there and do what you need to do. There was an event at Walmart last week for their first graduating academy of employees who will be training other district employees. It was a nice event and she was impressed to hear and see the standard Walmart is setting for its employees for the service they will be providing for the public. She is happy the store decided to build that academy in Los Banos. MAYOR MICHAEL VILLALTA: It was a nice graduation ceremony at Walmart. They actually built a facility in Los Banos to train between 60-90 employees a week. These employees go through the academy then go through the graduation ceremony. They are training not only the Los Banos employees, they are now training 90 every six weeks for surrounding areas. He congratulated Officer Solis and Sergeant Mendez for their jobs well done. He believes all of Council share the same concerns. He believes research needs to be done before coming up with answers on things. He gave information regarding the cooling shelter locations and times. Please direct anyone who needs to cool off to these locations. At the last City Council meeting, the person who spoke on the DAM improvement in raising the level of the DAM, he said there would be 2,000 workers coming to town. City Manager Terrazas looked into the matter further and found out there would actually only be about 200-300 workers coming to town. Please share that information. Have a nice and safe 4th of July. There will be fire and police personnel patrolling. Tickets for illegal fireworks or for the improper use of safe and sane fireworks are $1,250. The non-emergency number for the police department is 827-7070 to report fireworks. Please don’t dial 911 unless there is a fire or an emergency. Fire Chief Marrison noted that the 4th of July will be very busy and that police and fire personnel will be out. No warnings will be issued for dangerous or illegal fireworks. CLOSED SESSION – CONFERENCE WITH REAL PROPERTY NEGOTIATORS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8; PROPERTY LOCATED AT 1111 G STREET, LOS BANOS, CALIFORNIA, (APN 026-161-003, 026-161-008) (PORTION), APPROXIMATELY 6.04 ACRES; CITY NEGOTIATORS: CITY MANAGER TERRAZAS, CITY ATTORNEY VAUGHN, FINANCE DIRECTOR WILLIAMS, POLICE CHIEF BRIZZEE; NEGOTIATING PARTIES: SAM WATSON; UNDER NEGOTIATION: PURCHASE PRICE AND TERMS OF SALE. No reportable action. CLOSED SESSION – PUBLIC EMPLOYEE ANNUAL PERFORMANCE EVALUATION, PURSUANT TO GOVERNMENT CODE SECTION 54957, TITLE: CITY MANAGER. No reportable action. ADJOURNMENT. The meeting was adjourned at 10:20 p.m. APPROVED: /s/ Michael Villalta__________ Michael Villalta, Mayor ATTEST: /s/ Lucille L. Mallonee______________ Lucille L. Mallonee, City Clerk