City Council Meeting

CITY OF LOS BANOS CITY COUNCIL MEETING MINUTES APRIL 17, 2024 ACTION MINUTES – These minutes are prepared to depict action taken for agenda items presented to the City Council. For detail of this meeting refer to the electronic media (CD and/or audio) kept as a permanent record. CALL TO ORDER: Mayor Llanez called the City Council Meeting to order at the hour of 6:01 p.m. PLEDGE OF ALLEGIANCE: Police Chief Reyna led the pledge of allegiance. ROLL CALL – MEMBERS OF THE CITY COUNCIL PRESENT: Council Members Douglas Begonia, Jr., Brett Jones, Kenneth Lambert, Deborah Lewis, Mayor Paul Llanez; ABSENT: None STAFF MEMBERS PRESENT: City Manager Pinheiro, City Attorney Vaughn, Police Chief Reyna, City Clerk/Human Resources Director Mallonee, City Treasurer Lawrence, Fire Chief Tualla, Community & Economic Development Director Souza Elms, Parks & Recreation Director Heim, Finance Director Portillo, Finance Consultant Kuhn, Public Works Director/City Engineer Bergson CONSIDERATION OF APPROVAL OF AGENDA: Motion by Jones, seconded by Lambert to approve the agenda as submitted. The motion carried by the affirmative action of all Council Members present. 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. Mayor Llanez presented a proclamation to the VITAL volunteers in recognition of Volunteers Week, who were present to accept. BLANCHE WILLIAMS spoke regarding how she wanted to mention how wonderful it was this month and how we all worked as a community and a team to do the animal microchipping and there were so many people grateful and so excited about what is going on at the shelter and the community, thanked the Council for putting on the event, she really appreciated it; CRISTIAN SANTOS, representing Congressman Duarte, spoke regarding all that they are working on, i.e. the Veterans Care Act and thanked Mike Hughes and Alan Cotta and the VFW for all their support, working hard to fund more jobs and partnerships for a brighter America; UNNAMED PERSON, spoke regarding the upcoming annual National Day of Prayer event being held on May 2, 2024 and invited all the Council Members to come and also the public; Pastor from Mercy Springs Church, spoke to how it was an amazing turnout for the immigration event and asked the Council to continue to find more ways to support and help others find their way, the upcoming event on April 27, 2024 and how it is a good time to bring people together at Mercey Springs Church, he continues to encourage leaders as their job is difficult, to lean into that you are servant, you tend to refer to you predecessors in negative fashion, and to instead think of the work that they did created a place for you today, when I leave I want to make it better for the next person, look to the future and reimagine new ways to do stuff, do something bold, do something great; GREG HOSTETLER spoke regarding a City bid for asphalt and a change order for the construction that was not even part of the original bid package, how the City did not contact a local contractor about this project, the City bought cars from out of town in Hollister, how we need to keep the money local and create local jobs, tonight his is going to provide the city a notice of rescinding an annexation of Pioneer Ridge which was intended to develop and fulfill goals highlighted in the updated General Plan, concerns with housing options, affordability and homelessness, there have been substantial delays over the last 15 years and spoke regarding citations to private driveways and how the Los Banos Municipal Code regulates parking lot improvements and pot holes and how there are potholes that have not been taken care of, how the City Council hasn’t helped the residents like you said you would, how Council Member Lambert’s district is a disaster; ANN McCAULEY spoke regarding the April 23, 2024 meeting of the Board of Supervisors and how there will be volunteer recognitions and it would be fun to have a lot more to recognized and for next year be thinking of people who need to be recognized, how our Sheriff’s Department in Merced County serves a very rural area in Merced County and how they are severely understaffed and are not paid enough, she is happy that she has a good staff of police officers, she urged the Council Members to ask why it is not being staffed, they need to be paid properly, she doesn’t think anyone doing business in town should be given any opportunities to bid on projects unless they have completed prior projects to satisfaction, spoke regarding DeAnza and how Hostetler could have improved the area with lighting, not sure how building more family homes will help the homelessness; KATHY BALLARD stated that she has three questions: Imagine Way More was at the Easter Egg Hunt and had crew members, does he pay those people on his own or is that something above and beyond the $7,500 a month, the rate increase of 3.5% and if we haven’t done maintenance in 20 years, where has the money that I’ve been paying gone, how she comes to this meeting quite a bit and she remembers the gateway sign and how it was rejected before, why put up a sign to tempt someone to turn onto nothing, shouldn’t we clean up downtown first, she knows the downtown is trying to improve and she can’t believe that we are paying half a million dollars to put up a gateway sign, she would rather ruse it for Colorado Ball Park; MARIBEL GARCIA from the Los Banos Downtown, spoke regarding the events they are putting on and thanked everyone who supports the Los Banos Downtown Association; UNNAMED PERSON spoke regarding Pioneer and DeAnza and the park, she has heard conflicting information regarding what happened, she was told it was going to be done by summer and now it’s been over a year since this development was finished, she would like an update and will email you to get a better response, the entrance at DeAnza and Pioneer what is happening with that, concerns with the homeless nights are getting shorter, there is more daylight and they are out longer at night, it has been over a year since she has been coming and talking about this, there is a lot of disturbing noise, she can’t open her windows, she can’t sleep, she needs some way to get a response, she is calling because she has had too much, what do I need to say to get some type of response back and would appreciate some help; UNNAMED PERSON thanked the Council for the work they have done with the animal shelter, animals are being adopted quicker, spay and neuter events, microchipping event, spoke regarding an experience he had adopting a Doberman and thanked staff for their help, appreciates the work with the parks especially those who use the parks frequently, the Easter Egg Hunt is a great event from a previous Mayor, the work from past Council allowed for improvements to parks, safety concerns with the DeAnza and Mercey Springs and how the developer reached out to help find a solution and it was refused and how it is a safety issue now for students in the area, how the path from the City of Los Banos to Merced College was not continued and would like a restoration of a citizen run government and freedom for staff to give their opinion based on their experience. No one else came forward to speak and the public forum was closed. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Mayor Llanez requested that item 6G – City Council Resolution No. 6762 – Awarding Contract for Design, Manufacture, Construction, and Installation of the Downtown Gateway Sign Project be removed and presented. City Council Resolution No. 6762 – Awarding Contract for Design, Manufacture, Construction, and Installation of the Downtown Gateway Sign Project. Community & Economic Development Director Souza Elms presented the staff report, including a brief history of the project. Mayor Llanez spoke regarding cleaning up the downtown and all that has been accomplished downtown. Council Member Lewis inquired as to the other bid from Swinerton Builders for which Ms. Elms explained that those bids were rejected and the City provided the renderings and they produced the bids. Council Member Lewis spoke to how it is important to get our downtown in shape and to mimic what they did in Turlock, there are vacancies, update the buildings are needed to be more inviting, appreciates that they have painted the buildings, we have a wonderful corner building that remains vacant, not fair to compare us to Morgan Hill but there has been a concerted effort to move the downtown to where it is now, why are we putting up a sign to bring people downtown when our merchants close at 5 pm, we need to do a better job to help market our downtown, we need to do more upgrading our downtown, the Chamber of Commerce needs to help market Downtown Los Banos, she feels we should hold off on the sign and put the money into next year’s budget. Council Member Lambert stated that he disagrees with Ms. Lewis, marketing is advertising, advertising is a sign, speaking to legacy Mr. Villalta’s was a downtown sign and Pioneer Road, he has a business downtown and no one knows about it, how they are starting to get things done, saw this last year and if we wait the cost will double, most all cities have an entrance sign to their downtown, it has been brought back to us at half of what it was originally bid at, no reason to wait, get people back to see Henry Miller Plaza, best entrance sign to our great City of Los Banos, it is time to move forward now. Council Member Jones stated that there are vacancies because they are waiting on the right tenants, this sign is important and is long overdue, we are trying to revitalize the downtown and we need to bring attention to downtown, and there are two new businesses on I Street that are going to be real nice and have put an investment to downtown to make it better. Mayor Llanez spoke regarding KPI (key performance indicators) and how COVID impacted small businesses, it may not drive in a lot of traffic and will be a great problem to consider, great way to draw people in and to give the local businesses one more resource one more tool, feels it is a great investment. Motion by Jones, seconded by Lambert to adopt City Council Resolution No. 6762 – Awarding Contract for Design, Manufacture, Construction, and Installation of the Downtown Gateway Sign Project. The motion carried by the following roll call vote: AYES: Begonia, Jones, Lambert, Llanez; NOES: None; ABSENT: None. Motion by Jones, seconded by Lambert to approve the consent agenda as follows: Check Register for #244444 - #244707 in the Amount of $2,762,625.79; Third Quarter Investment Report for 2023/2024; City Council Resolution No. 6758 - Approving the Acceptance of a $7,500 PETCO Love Animal Welfare Organizations (AWO) Grant and Amending the Fiscal Year 2023-2024 Budget by Increasing the Appropriation Amount for Expenditures and Revenues in the Amount of $7,500; City Council Resolution No. 6759 – Approving the Annual Local Transportation Fund (LTF) Claim to be Filed with the Merced County Association of Governments (MCAG) for Fiscal Year 2023-2024; City Council Resolution No. 6760 – Accepting the 7th Street Ballpark Turf/Field Renovation Project as Complete and Authorizing the Filing of a Notice of Completion with the Merced County Recorder; City Council Resolution No. 6761 – Accepting the Certification of Registrar of Voters of the Results of the Canvas of the March 5, 2024 Presidential Primary/Special Municipal Election Pertaining to Measure G – Shall the Offices of City Clerk and City Treasurer be Appointed & Measure H – Shall the Term of Office of Mayor be Four Years; City Council Resolution No. 6762 – Awarding Contract for Design, Manufacture, Construction, and Installation of the Downtown Gateway Sign Project. The motion carried by the affirmative action of all Council Members present. PUBLIC HEARING – TO RECEIVE PUBLIC COMMENT AND CONSIDERATION OF A CONDITIONAL USE PERMIT AND CATEGORICAL EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND CONDITIONAL USE PERMIT #2024-02 TO ALLOW THE USE OF A TYPE 21 ALCOHOL LICENSE FOR THE OFF-SALE OF GENERAL ALCOHOL FOR WESTERN SINGH STORES, INC. DBA LOS BANOS LIQUOR LOCATED WITHIN THE HIGHWAY COMMERCIAL ZONING DISTRICT AT 947 W. PACHECO BOULEVARD, SUITE A, APN: 431-020-002; CITY COUNCIL RESOLUTION NO. 6763 – FINDING THE PROPOSED PROJECT TO BE CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15301 AND APPROVING CONDITIONAL USE PERMIT #2024-02 TO ALLOW THE USE OF A TYPE 21 OFF-SALE GENERAL ALCOHOL LICENSE FOR WESTERN SINGH STORES, INC., LOCATED AT 947 WEST PACHECO BOULEVARD, SUITE A. Community & Economic Development Director Souza Elms presented the staff report, which included a PowerPoint presentation, making note of condition of approval #8 from 15% to 40%. Mayor Llanez opened the public hearing. No one came forward to speak and the public forum was closed. Motion by Lambert, seconded by Jones to adopt City Council Resolution No. 6763 – Finding the Proposed Project to be Categorically Exempt from the California Environmental Quality Act Pursuant to Section 15301 and Approving Conditional Use Permit #2024-02 to Allow the Use of a Type 21 Off-Sale General Alcohol License for Western Singh Stores, Inc., Located at 947 West Pacheco Boulevard, Suite A. The motion carried by the affirmative action of all Council Members present. PUBLIC HEARING – TO RECEIVE PUBLIC COMMENT AND CONSIDERATION OF AN ANNUAL ADJUSTMENT TO THE LOS BANOS DEVELOPMENT IMPACT FEE SCHEDULE BASED ON THE ENGINEERING NEWS RECORD CONSTRUCTION COST INDEX; CITY COUNCIL RESOLUTION NO. 6764 – APPROVING AN INCREASE IN DEVELOPMENT IMPACT FEES TO REFLECT INCREASES IN THE ENGINEERING NEWS RECORD CONSTRUCTION COST INDEX FOR 2024. Finance Director Portillo presented the staff report, which included a PowerPoint presentation. Mayor Llanez opened the public hearing. ANN McCAULEY, spoke regarding how inflation is definitely under control and has concerns if 1.1% is enough and wants to make sure that we have enough funds to do what we want to do, this is passed on to the new homes so that burden isn’t on the current homeowner and should not be short-sided; ACOSTA RAUL, with DR Horton, stated that there is a housing crisis in California and it has never been more important now for new home development, data pulled shows that more than 40% of home buyers are in your local community, you need $10,000 a month income, how are we doing it, we are doing it with multiple families, what’s the harm of increasing fees is that you would be pricing people out of buying homes, it is unconstitutional to make homeowners pay unproportional fees, spoke to the fees they are currently paying compared to Anderson Homes, and homes in Merced, increased mandated State fees, how he thinks you need to be mindful of the families looking to buy homes and feels you should reduce the fees if anything. ROY TODD, resident and business owner in Los Banos, spoke to how his brother is a developer and his question would be what prompted this raise in fees, was there a shortfall, inflation, interest rates, something tied to the budget, can you use surplus from somewhere else for which Ms. Souza Elms explained that the nexus dictates that we are to adjust the fees annually in April so that when the City is ready to construct infrastructure there is funding available, it is not due to a shortfall; ROY TODD added that back in the day we increased sales tax by ½ cent and he supported it when asked, what did the ½ cent go to, he then spoke to banana flag ordinance and how that is not being enforced, if we are going to spend money on something then fix the problem; Ms. Souza Elms added that developer impact fees do not pay for operation or maintenance, new development pays for the impact; ROY TODD spoke regarding issues he has with homeless confrontation and how he can’t get police to help; UNNAMED person inquired as to what the fees go towards, what percentage actually covers the house for which Financial Consultant Kuhn stated what went into the nexus study and how raising fees is not always a welcomed thing and how this fee may not be enough and will costs the city in the future; ACOSTA RAUL, DR Horton, stated that the house price is increased and going straight to the homeowner and how $1,000 increases are pricing families out of the market, feels that this increase is not just. No one else came forward to speak and the public hearing was closed. Council Member Lewis stated that there was a senior development group that came to Council asking for a waiving of fees and she did not support it, she has asked the Fire Chief as to the impact for such type services, if we had set aside those fees the City would have had to cover those costs, and why is Merced charging less than Los Banos for which Ms. Souza Elms stated that in 2019 the communities around us we fell in line with, but we could be talking apples and oranges, we need to compare like for like and this is their affordable housing for the bay area. Council Member Lambert stated that he is not sure how it is going to raise the home cost increasing over $1,000, how we have to think about our first responders and everybody that is going to take care of the area from here on out, feels that this fee is doable and readdress again next year; for which Ms. Souza Elms then spoke to school fees and how the LBUSD charges high fees and that could affect home prices and direct impact costs. Council Member jones stated that these small increase doesn’t stop a buyer in qualifying for a home, it’s easier for a buyer to adjust their finances to qualify, we do have a shortage of homes, interest rates are high because our base prices of homes is high, this increase alone will not solve the impact issues but it will help mitigate potential foreseeable issues. Mayor Llanez spoke regarding impact fees and rate studies, what is the impact is what we are judging this on, we have the infrastructure needs and the cost you pay when you move to the city. Motion by Lambert, seconded by Jones to adopt City Council Resolution No. 6764 – Approving an Increase in Development Impact Fees to Reflect Increases in the Engineering News Record Construction Cost Index for 2024. The motion carried by the affirmative action of all Council Members present. CONSIDERATION OF INITIATING PROPOSITION 218 PROCESS ADVISING PROPERTY OWNERS AND UTILITY CUSTOMERS OF PROPOSED WATER, WASTEWATER AND SOLID WASTE RATE ADJUSTMENT BEGINNING JULY 1, 2024 AND APPROVE A RESOLUTION ADOPTING A REVISED BUDGET FOR FISCAL YEAR 2023-2024 AS IT PERTAINS TO EXPENDITURES; CITY COUNCIL RESOLUTION NO. 6765 – ADOPTING A REVISED BUDGET FOR THE 2023-2024 FISCAL YEAR BY INCREASING EXPENDITURES AS IT PERTAINS TO COSTS ASSOCIATED WITH THE PROP 218 NOTIFICATIONS IN THE AMOUNT OF $15,000. Finance Director Portillo presented the staff report, which included a PowerPoint presentation. Council Member Lewis inquired as to the number associated with garbage that was in parenthesis and what the cost of sending out the mailers would be for which Ms. Portillo responded that the garbage number is solid waste for garbage collection and that it will cost $15,000 to send out the mailers. Council Member Lewis inquired as to when you have a public hearing, how will the protest letter work for which Ms. Portillo explained how instructions will be given in the letter to protest the rate increase and referred to the draft Prop 218 notification. Council Member Lewis inquired as to the number of votes you have to get back to not allow for the increase, for which Ms. Portillo responded majority, half plus 1. Motion by Begonia, seconded by Lambert to adopt City Council Resolution No. 6765 – Adopting a Revised Budget for the 2023-2024 Fiscal Year by Increasing Expenditures as it Pertains to Costs Associated with the Prop 218 Notifications in the Amount of $15,000. The motion carried by the affirmative action of all Council Members present. APPOINTMENT OF COMMISSIONER TO THE FOLLOWING COMMISSION; MEASURE H CITIZENS’ OVERSIGHT COMMITTEE – ONE (1) VACANCY; ONE (1) UNEXPIRED TERM – EXPIRING DECEMBER 31, 2025. Motion by Jones, seconded by Begonia to appoint Doug Young to the Measure H Citizens’ Oversight Committee for an unexpired term expiring December 31, 2025. The motion carried by the affirmative action of all Council Members present. CANCELLATION OF THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR WEDNESDAY, MAY 1, 2024 DUE TO THE MAY DAY FAIR. Motion by Jones, seconded by Begonia to cancel the May 1, 2024 Regular City Council Meeting due to the May Day Fair. The motion carried by the affirmative action of all Council Members present. ADVISEMENT OF PUBLIC NOTICES. (One Report). Community & Economic Development Director Elms stated that there will be a Public Hearing at the Los Banos Planning Commission Meeting on April 24, 2024 to consider a Categorical Exemption from the California Environmental Quality Act (CEQA) and a Mobile Food Vendor Permit #2024-03 to allow the operation of a mobile food vending vehicle on private property for Mauricio Colmenares Pacheco dba Pacheco Pass Food Truck. The subject property is located within the Highway Commercial Zoning District at 401 W. Pacheco Blvd., more specifically identified as Assessor's Parcel Number: 027-161-048. CITY MANAGER REPORT. City Manager Pinheiro gave his personal condolences on the passing of the City’s former Fire Chief of Tim Marrison and his personal thanks to his family and thanked all that helped put on the memorial event; how the last couple of weeks the team has been painting and striping streets in the downtown, since our last Council Meeting we have had 2 microchipping events and had just under 500 animals and gave a big thank you to the Code Enforcement Division and Police Sergeant Mendez, the Animal Shelter and staff, to look forward to doing good things in the future for the animal shelter. REPORT/UPDATE ON MERCED COUNTY ASSOCIATION OF GOVERNMENTS (MCAG), PENINSULA CLEAN ENERGY (PCE), MEASURE V COMMITTEE, AND SAN JOAQUIN VALLEY AIR POLLUTION CONTROL DISTRICT (SJVAPCD), AND LOS BANOS DOWNTOWN PROPERTY & BUSINESS IMPROVEMENT DISTRICT (LBDPBID). No report, next MCAG meeting is April 18, 2024. CITY COUNCIL MEMBER REPORTS KENNETH LAMBERT: Stated that this is just the start of the process, this is not where we pass, this weekend is the Spring Street Fair and hopes to see you all out there, thanks to the Department Heads for great presentations today, there is a lot going on and its tough up here because we have to put up with a lot of accusations and he has all his licenses and how people can come see them and he has never been closed down, all we can do is just keep moving forward, likes moving other people’s legacy, likes seeing the archway, just one step forward and nibble at them as we go, our investment balance has increased by $2 million in the last quarter, we are not in a hole we are increasing. DOUGLAS BEGONIA, JR.: No report BRETT JONES: Spoke to comments during public forum, thank you for the report about the Ranchwood Park parking lot, we will fix it, how you are doing an annexation retraction on Pioneer Road, it seems like the individuals who are doing the most complaining are doing the least to get things done, and a lot of people have a backseat view as to what they see going on. DEBORAH LEWIS: Stated that on April 6, 2024 the Red Cross sponsored the Los Banos Fire Department/CalFire in an event to install smoke detectors and thanked the Fire Chief for allowing his staff to participate, it was a wonderful event, spoke regarding former Fire Chief Marrison service to honor him, thanked Fire Chief Tualla and his staff who put it together, she was thankful to have had him as our Fire Chief; April 20, 2024 our Fire Department is sponsoring an Autism Meet & Greet, National Day of Prayer is May 2, 2024 and encouraged all to come, she has concerns about our Sheriff’s Department and shortages there and that is not the charge of MCAG that is the charge of the Board of Supervisors and that is one of their number one charges as well as ours, contact them and find out why they are not supporting Sheriff Warnke to raise salaries to higher more sheriffs; she then had a Council Member Request to have a report out on what is happening with DeAnza Road and Mercey Springs and also how we hired an organization to do an investigation on if the hotels/motels are paying the proper tax and can we find out the results. PAUL LLANEZ: Stated that this week is National Public Safety Dispatcher Week and the week we honor them, how Liz Martinez was named Dispatcher of the Year, he attended Tim Marrison’s event and it was very well put together, he called Greg to find out why that street is not open and we need to figure it out and requested a meeting, if we create policy and they don’t meet the expectations, we need to set a standard, how he will not be at the second meeting in May as he will be attending OneVoice in Washington, D.C. ADJOURNMENT. Motion by Jones, seconded by Lambert, the meeting was adjourned at 8:17 p.m. APPROVED: __/s/ Paul Llanez______________ Paul Llanez, Mayor ATTEST: __/s/ Lucille L. Mallonee___________ Lucille L. Mallonee, City Clerk