ESCALON MINUTES
CALIFORNIA CITY COUNCIL OF THE CITY OF ESCALON
MEETING OF SEPTEMBER 5, 2023
STEPPING STO
TO CENTRAI
City Council Chambers, 2060 McHenry Avenue -7:00 P.M.
Beginning Resolution No. 36-23
Beginning Ordinance No. 593
Beginning Minute Order No. 43-23
PRESENT: Mayor David Bellinger
Mayor Pro Tem Andrew Thomas Hagan
Councilmember Jeremy Engle
Councilmember Malinda Walker
Councilmember Shawn Strohman
STAFF PRESENT: Dominique Romo, City Manager/City Clerk
Jaylen French, Development & Community Services Manager Jacob Cook, PW Crew Leader
Jose Zambrana, Police Sergeant
Andy Heath, Finance Consultant
Ivett Arevalo, Deputy City Clerk
Anne Branham, City Attorney
CONSENT CALENDAR
These items are considered routine in nature and are acted upon by a single action unless requested by an individual Council Member or member of the public for special consideration.
1. Approve the Minutes from the Regular Meeting of August 21, 2023.
2. Approve the Register of Demands for August 17-30, 2023 in the amount of $ 451,250.25.
3. Award the Well No. 1A Improvement Project to Conco-West, Inc. of Manteca, in the amount of $2,537,626.00.
Mayor Pro Tem Hagan pulled Item 1 for discussion.
Councilmember Strohman pulled Item 3 for discussion.
City Manager Romo addressed the Council on Item 3, advising that the 15% contingency for construction and/or material costs was not included in the total amount of the project. City Manager Romo made a formal request that if Council approves Item 3, that it be approved as amended, revised to state "with a 15% contingency for construction and/or material cost not to exceed the amount of $2,918,270."
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Mayor Pro Tem Hagan inquired about the funding source for Item 3 and whether the proposed amount was already included in the water rates.
City Manager Romo explained the background and history of this project, which included the need for a State loan, which prompted that an updated rate study (2020) be completed to ensure the city's repayment of the loan.
Mayor Pro Tem Hagan asked if this project would raise water rates.
City Manager Romo said no because the required water rates were already in place, and the additional project costs would be covered by the existing water fund enterprise revenues available.
Councilmember Strohman asked why the city is drilling a new well when they are also planning the SSJID Surface Water project.
City Manager Romo explained that the City currently relies on only groundwater for its water supply/demand and capacity needs, and State regulations require enough water to respond to emergencies like large fires, but also be able to continue to provide current levels of service simultaneously. While the Surface Water project might help in the future with the City's water needs, the City is required to drill a new well to comply with the current requirements.
Councilmember Walker asked when the new well would be completed City Manager Romo stated she did not have the exact dates at hand. She noted that only one bid was received for the project and the selected contractor is eager to begin work promptly. City Manager Romo to provide an update on the project's timeline at the next meeting or via email.
Councilmember Engle inquired about the status of the SSJID Surface Water project, as it seemed relevant to the ongoing discussion.
City Manager Romo provided an update, mentioning that there was not much new information available at that time. She explained that the city had submitted a 30% project design to SSJID and had received basic feedback. She noted that the staff was scheduled to meet with the City of Ripon in the coming weeks regarding their interest in purchasing surface water and potentially sharing in the future costs and infrastructure needed to do so. Outcome of these discussions would be reported to the Council.
Councilmember Engle wanted to know when they could expect another update.
City Manager Romo replied that she would provide an update at the next meeting.
Jacob Cook, PW Crew Leader then provided some context regarding the differences between well water and surface water. He explained that well water provides the city with more control, enabling them to meet high water demand when necessary and adjust usage during lower-demand periods.
He stated that in contrast, surface water has a minimum flow requirement that is less adaptable for addressing high-demand situations. Cook further emphasized that well water is better suited to the city's needs because it responds quickly to changes in demand.
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Regarding Item 1, Councilmember Strohman requested a clarification be added to the minutes from the City Council meeting from August 21, 2023. Specifically, he pointed out the eighth paragraph, which began with "Councilman Stroman acknowledged the concern..." Councilmember Strohman wanted to add a note stating that at a previously held meeting with Harmony, Mr. Ubaldi stated that he had contacted all five council members individually via e-mail and only Councilmember Strohman responded
Councilmember Jeremy Engle took the opportunity to commend Deputy City Clerk Ivett Arevalo for her work on the Minutes, noting a significant improvement compared to previous versions and expressing his appreciation for her efforts.
MOTION - It is moved/seconded by HAGAN/ENGLE that the Consent Calendar be approved as presented, with Items 1 and 3 being approved as amended. Motion carried unanimously (5-0) MINUTE ORDER 43-23
STAFF COMMUNICATIONS & UPDATES
4. a. Treasurer's Report for July
b. City Manager's Report
i. Informational Updates
City Manager Romo presented the Treasurer's Report for July. She also introduced Financial Consultant Andy Heath, who has been actively working on completing the city's budget. Mr. Heath would provide a budget presentation later in the meeting.
Community Services and Development Manager French updated Council by explaining his engagement efforts with various organizations and businesses in the City to better understand the community's goals and objectives. He noted an increasing number of proposed development projects and assured that he and the staff are following the proper procedures when dealing with them. He also stated that staff is receiving completed housing element surveys and encouraged public participation. He added that these surveys are accessible on the city's website, and physical copies were distributed with utility bills.
PW Crew Leader Cook informed the Council about rescheduled roadwork on Highway 120, which is now set to commence on Monday, September 11.
Sergeant Jose Zambrana, standing in for Chief Flores, reported that there were no updates from the police department at this time.
In response to a query from Councilmember Engle regarding slurry seal work in the Sanchez area, Crew Leader Cook indicated that he did not have any updates on that matter. City Manager Romo advised that staff would provide the requested details at a future meeting.
City Manager Romo informed Council that Chief Flores is scheduled to be on leave for the entire month of September, returning in October. She stated that during his absence, Sergeant Zambrana
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and/or Sergeant Hargraves will represent the police department at Council meetings. She added that Public Works Superintendent Collins was unable to attend the meeting, and that PW Crew Leader Jake Cook could address any public works related inquiries.
City Manager Romo provided an update on the Oakdale Animal Shelter Subcommittee, which has been meeting monthly to address matters related to the animal shelter operated/owned by the City of Oakdale, which provides animal control/shelter services to both the City of Escalon and the City of Riverbank. She stated that both Oakdale and Riverbank have appointed council members to the subcommittee and that this item will be on the next Agenda for discussion and a seat appointment.
City Manager Romo mentioned receiving two Agenda Item Requests forms from residents. She stated that the first request, made by Ryan and Jamie Butler, pertains to road closure set up times on Main Street for special events. She mentioned that the Butlers had put forward alternative solutions to mitigate the impact of street closures on their business, including the utilization of different park areas or possibly updating restrictions on street closure hours.
Council gave consensus for the Agenda Item Request to be added to the next meeting Agenda for discussion.
City Manager Romo then introduced another request from Kristi and Doug Pruden, who have expressed concerns about street safety on Deborah Circle. They have specifically requested the installation of speed bumps and/or stop signs to address these safety issues.
Council gave consensus for the Agenda Item Request to be added to the next meeting Agenda for discussion.
MATTERS PRESENTED FROM THE AUDIENCE
At this time, the public may address the City Council on any item, not on the agenda that is within the authority of the Council. The speaker is limited to a maximum of five minutes. Unused time may not be yielded to another speaker. The determination of whether an item is within the authority of the Council is a discretionary decision made by Mayor.
Judy Lopez, an Escalon resident, apologized to Councilmember Engle for singling him out in the previous meeting and expressing regret for her anger. She acknowledged that her previous statement should not have been directed at him specifically. However, she emphasized the need for unity within the Council and urged them to focus on important agenda items that have been neglected in the past. Mrs. Lopez also mentioned facing criticism and name-calling on social media and in private discussions, along with baseless accusations. She highlighted the presence of bullies who pressure individuals into supporting the local government's agenda without considering different viewpoints.
He emphasized that the town belongs to everyone present at the meeting and the entire community.
She wished them success in their endeavors and personal agendas, while also expressing hope that they would become a Council that truly serves the City's best interests.
Shayla Fowler, an Escalon resident, reminded Council that they had taken their positions to improve the community and stated she found it unacceptable that the City's police officers had been without a contract for two years, spanning two different council terms. Fowler acknowledged that the issue had been inherited but stressed that it remained unresolved. She pointed out that Escalon's police officers were among the lowest paid in the region and commended the officers for their positive interactions with the community, highlighting their strong relationships with residents. She
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lamented that some officers were leaving Escalon not by choice but out of financial necessity. She expressed disappointment in the Council's delay in addressing the issue, describing it as a disservice to both the officers and the citizens. She urged the Council to provide the police officers with a fair contract and fair wages, emphasizing that it was their responsibility to do so.
ADMINISTRATIVE MATTERS
5. Conduct Interviews and if Council agrees to, make appointment to the expired seat on the San Joaquin County Commission of Aging's Escalon Representative.
City Manager Romo presented the staff report on this item. She announced that there were two applicants, Elsa Sandoval and Ann Shaddix, and that their applications had been included in the staff report for the Council's consideration.
Mayor Bellinger asked both candidates to introduce themselves and explain their motivation for seeking the position, beginning with applicant Elsa Sandoval.
Elsa Sandoval, an Escalon resident and applicant for the Commission on Aging, shared that she holds a Bachelor of Science in Human Services and a degree in Public Administration, bringing over 30 years of experience in social services, including a focus on elderly services. Ms. Sandoval stated she has served on various committees and currently volunteers with Escalon Strong and participates in Congressman Harder's Community Advisory Committee. She stated has extensive experience working with aging populations in rural communities, identifying needs, and developing programs to bridge county services with seniors in disenfranchised communities. She emphasized her ability to bridge services and her commitment to addressing the needs of the aging population.
Councilmember Engle asked her about her goals for the Commission on Aging, and Ms. Sandoval emphasized her intention to build a safety net and bridge services for seniors in Escalon, ensuring they can age in place.
Ann Shaddix, the current representative on the Commission on Aging, shared her qualifications and experience. She highlighted that she had completed the necessary requirements for the role, including studying the Brown Act and meeting the age criteria. Ms. Shaddix shared that the Commissioner role involves improving seniors' lives through services and programs, adding that during the pandemic, she and other Commissioners worked diligently to support seniors, even addressing issues related to powers of attorney and wills. Ms. Shaddix discussed her involvement in various projects, such as the walkability program, sidewalk repairs, and addressing safety concerns in Escalon. She emphasized the importance of continuity in the Commission's work and described ongoing projects like the low vision clinic, aimed at assisting seniors with visual impairments. Additionally, Ms. Shaddix mentioned her involvement with the blind center in Stockton and her efforts to resolve issues and rebuild the center. She stressed the need for strong leadership, communication skills, and teamwork in a commissioner role and expressed her desire to continue serving on the Commission. She concluded by noting that sudden changes in leadership could disrupt the organization's work, highlighting her commitment to the Commission's mission.
Mayor Bellinger invited members of the public to provide their input or share their thoughts on the nominations for the Commission on Aging representative.
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Lois Tilbury expressed her appreciation for Ann Shaddix's dedication and work over the past three years as the Commission on Aging representative. Tilbury highlighted Ann's passion for improving the lives of local seniors and her role in strengthening programs like the Escalon Senior Fund Bunch Cindy Marino expressed her gratitude for Ann Shaddi's service on the Commission on Aging over the past three years during the council meeting. She praised Ann's dedication and hard work, highlighting the positive impact Ann had on the lives of local senior citizens. She also noted that Ann Shaddix had breathed new life into her role, indicating her commitment to serving the community's seniors.
Heather Thomas voiced her support for Ann Shaddix to continue her position on the Commission on Aging. Thomas commended Ann's strong representation of the seniors in Escalon and her ability to provide valuable information to them. She praised Ann for her energetic and compassionate approach to addressing the needs of the senior community, particularly during the pandemic.
Thomas highlighted Ann's efforts in maintaining connections among seniors and providing engaging activities to help them through challenging times. She expressed confidence in Ann's vision for the future and her dedication to the community's seniors.
Sherry Hill expressed her perspective on the candidates for the Commission on Aging. She acknowledged the valuable contributions made by Ann Shaddix in her current role, particularly her work with the Escalon Senior Fun Bunch committee and other senior-related initiatives. Sherry also acknowledged Elsa Sandoval's impressive qualifications and background in social services. She emphasized the importance of continuity in such positions and suggested that having an alternate or transition plan might be beneficial. Sherry highlighted the need to consider both candidates seriously and hoped that the council would make the best decision for the community.
Mayor David Bellinger raised concerns about selecting a candidate for the Commission on Aging, particularly regarding the potential for a sudden change in leadership. He sought legal counsel's advice on the possibility of having an alternate candidate or establishing a transition plan to address this issue.
City Attorney Branham, clarified that appointing an alternate candidate was indeed a viable option as long as both candidates met the necessary qualifications. However, she noted that this arrangement would be informal but could provide a solution to the issue of a sudden transition.
Mayor Bellinger further elaborated on the concept of a transition plan, emphasizing the importance of maintaining continuity in the Commission on Aging. He also expressed his concern for the well- being of senior citizens who rely on the Commission's services and initiatives.
Mayor Bellinger then opened nominations.
Mayor Pro Tem Hagan nominated Elsa Sandoval as the primary Commission on Aging representative, suggesting that her accomplishments make her a strong candidate. He also proposed Ann Shaddix as the alternate representative and expressed confidence in Sandoval's potential to contribute positively to the community.
Mayor Bellinger sought clarification on the voting process from the city's legal counsel.
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City Attorney Branham explained that the council would nominate candidates and then conduct a vote for each nomination.
Councilmember Strohman acknowledged Elsa Sandoval's qualifications and her resume but stated he believed it was not the right time to end Ann Shaddix's work with the Commission on Aging, emphasizing the importance of continuity. Strohman suggested a primary and alternate candidate approach, nominating Ann Shaddix for one final term with Elsa Sandoval as the alternate.
City Attorney Branham instructed the council to vote on the first nomination and urged each council member to vote only once for the two options.
Councilmember Engle nominated Elsa Sandoval as the sole candidate, citing the need for clear decision-making without trying to please everyone and focusing on the future of the city, especially its senior population.
Anne Branham announced that there were three (3) nominations in total. The council proceeded to vote:
MOTION - Elsa Sandoval as primary with Ann Shaddix as alternate. Motion failed (2-3; NAYS- ENGLE/WALKER/STROHMAN). MINUTE ORDER 44-23
MOTION - Ann Shaddix as primary with Ann Elsa Sandoval as alternate. Motion failed (2-3; NAYS-ENGLE/HAGAN/BELLINGER). MINUTE ORDER 45-23
MOTION - Elsa Sandoval as the only representative. Motion failed (1-4; NAYS- WALKER/STROHMAN/HAGAN/BELLINGER). MINUTE ORDER 46-23
With a tie between the options of Elsa Sandoval as the primary representative with Ann Shaddix as the alternate and Ann Shaddix as the primary representative with Elsa Sandoval as the alternate, Councilmember Engle, who had not voted for either option, was asked by legal counsel to cast a new vote. Engle voted for Elsa Sandoval as the primary representative with Ann Shaddix as the alternate, shifting the vote in favor of this option
MOTION - Elsa Sandoval as primary with Ann Shaddix as alternate. Motion passed (3-2; NAYS- WALKER/STROHMAN). MINUTE ORDER 47-23
Elsa Sandoval was then confirmed as the newly appointed representative of the Commission on Aging, with Ann Shaddix appointed as her alternate.
6. Informational Presentation/Update regarding City of Escalon's Waste Water Treatment Plant Upgrade Project by Black Water Consulting, Inc.
City Manager Romo introduced Alison Furuya, a representative from Blackwater consulting engineers, during a council meeting.
Alison Furuya began by introducing herself and her role as the manager and lead contact for the city's wastewater treatment facility project. Her presentation aimed to provide essential information regarding the facility's background, location, functions, and operational processes. She also delved
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into the historical issues that led to the necessity of the upgrade project, outlined the project's scope, and concluded by sharing the current project status.
Following her introduction, Alison Furuya proceeded with a PowerPoint presentation. After the presentation concluded, the Council had the opportunity to ask questions and seek clarification on the discussed topics.
Councilmember Jeremy Engle posed several questions during the presentation. He inquired about the timeline for the nine project phases and their estimated completion, to which Alison Furuya explained that the timeline could vary depending on factors like weather and bidding, but it would likely span at least two to three years for the entire project.
Councilmember Engle also questioned the cost allocation for the industrial sector, which accounts for 53% of wastewater, and whether such a significant expense could drive industries away. He asked if this cost was comparable to other nearby cities like Ripon, Stockton, Modesto, and Oakdale.
Furuya mentioned that city staff had initiated discussions with industries and that the long-term cost impact would depend on the nature of these discussions. She noted that industries in different areas face varying cost structures, making it challenging to draw direct comparisons.
Councilmember Engle's next query revolved around the financial burden on residents, particularly whether they would experience consistent annual increases over the next 20 years or if the cost impact would be more front-loaded. Furuya explained that an initial substantial cost would likely be incurred, especially if the project was financed through a loan. The rate increases would be structured to repay this loan, but additional costs related to labor and electricity could lead to gradual increases over the project's span.
Councilmember Jeremy Engle sought to understand the consequences of not proceeding with the wastewater treatment facility upgrade within the next five years. Alison Furuya explained that the regional board had shown leniency thus far but had the authority to start imposing fines on the city at any time. The initiation of fines would serve as a strong incentive for the city to proceed with the necessary upgrades.
Councilmember Engle then inquired about the potential magnitude of fines, whether they would be substantial or more lenient. Furuya clarified that fine amounts could vary widely depending on the situation, and she was not privy to the maximum fines that the regional board could impose. The fines might accrue daily, potentially motivating the city to address the needed improvements promptly.
Councilmember Jeremy Engle expressed his gratitude for the presentation and commended Alison Furuya for her thorough and knowledgeable delivery.
Mayor Pro Tem Hagan sought clarification on which phases of the project were critical and whether all steps were essential. He questioned if some phases were part of an ideal plan rather than a necessary one. Alison Furuya responded, explaining that while some phases held greater importance, completing all phases was essential for the facility's complete rehabilitation. She emphasized that adding domestic headworks early in the project was crucial to address ongoing issues with solids accumulation.
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PW Crew Leader Jacob Cook suggested that council visit the facility in person to gain a firsthand understanding of the project's complexity and challenges, noting that seeing the facility in person would provide better insight than photographs or descriptions.
Councilmember Strohman expressed gratitude for the presentation and raised several questions. He inquired about the possibility of incorporating the three newly purchased aerators into the new design, to which Alison Furuya confirmed that they could be integrated Tom McCoy, WWTP Operator with Quality Control, Inc., added that they typically replace about five aerators per year and occasionally more, depending on their condition.
Councilmember Strohman expressed interest in having a project schedule or timeline that outlines specific milestones and decision points for the wastewater treatment facility upgrade. He requested details on when the council would need a go/no-go decision from the industries involved. He emphasized that having such a preliminary milestone schedule would be helpful for both the council and constituents to track the project's progress and decision-making points.
He then inquired about the $40 million estimated construction costs, seeking clarification on whether these were today's dollars or based on earlier budgets from 2019. Alison Furuya clarified that the cost estimate was in today's dollars but acknowledged that future price escalations could increase the final costs.
Councilmember Strohman also suggested adding a column to the presentation slide to indicate the anticipated duration for each project phase, allowing for a clearer understanding of the timeline.
Lastly, he asked if the presentation could be shared as part of the meeting minutes, and City Manager Dominique Romo confirmed that it would be posted on the city's website alongside the agenda for reference, with the possibility of making updates to incorporate the requested timeline details.
Councilmember Strohman asked about the alternative design labeled "2b," which had been created by a different design firm. He requested an explanation of how Blackwater had taken this previous design and enhanced it. Blackwater representative Alison Furuya explained that the design had originated from a master plan created by another consultant. They utilized the information from that plan, contacted manufacturers of the mentioned technologies to gather data, incorporated monthly monitoring report data, and took input from city staff. This comprehensive approach allowed Blackwater to update and improve upon the existing design.
Mayor David Bellinger inquired about the industrial flow and its potential to impact the scope of the project. He wanted to understand the current pretreatment efforts by industries and if they were considering improving the quality of their effluent to potentially reduce project costs. Black Water representative Alison Furuya explained that there could be a balance, with industries implementing more pretreatment to reduce costs at the treatment plant.
Mayor Bellinger also questioned the current and future plant capacity. Furuya provided information on the current permitted capacity of both domestic and industrial sides of the plant and noted that there wouldn't be a significant increase in capacity, but it would accommodate potential population growth.
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Mayor Bellinger further inquired about the equipment's true capacity. Furuya explained that the equipment could potentially support additional capacity and might require transitioning from area pond systems to activated sludge in the future, depending on expansion needs.
A member of the audience inquired whether it would be more cost-effective to build a new facility if the space were available. In response, Alison Furya explained that the extensive work required at the current site was comparable to building a new facility. She suggested that the cost for constructing a new facility would likely be similar to or possibly even higher than the cost of the current project, given the scope of the upgrades needed.
Councilmember Strohman inquired about the alternative if the industrial sector refused to contribute to the project. Alison Furuya explained that in that case, the city could choose to design the upgrades strictly for the domestic facilities and not make any improvements on the industrial side. The city holds annual permits with these industries, so another option would be not to renew those permits.
When asked about the cost of just the domestic side of the project, Furuya didn't provide a specific figure but mentioned that it would likely be under $20 million. Mayor David Bellinger estimated it to be slightly under $20 million, and Furuya agreed, stating that it could be less than the city's share of the project's cost, which is 47%. She provided a rough guess of around 35% to 40% of the total project cost for the domestic side upgrades.
Mayor David Bellinger asked about the impact of additional industries coming to town after the upgrades. Alison Furuya explained that the treatment plant wouldn't have the capacity to accommodate another large processing plant. She added it might be able to handle a small industry, but that would affect the capacity available for residential and smaller commercial growth within the city.
7. Consider a Request for Reduced and Deferred Development Impact Fees from Cornerstone Construction for a proposed Senior Housing Project referred to as Countrywood Cottages and allow the City Manager or her designee to execute an agreement for the fee reduction/deferral.
Development and Community Services Manager Jaylen French presented the staff report on this item. He explained the project comprises 18 apartment units, primarily one-bedroom units, with specific provisions such as a "local first" policy favoring Escalon residents or workers and an age restriction of 62 years or older.
Mr. French explained that the applicant was willing to implement both the local first policy and the age restriction as part of the project, addressing concerns raised by the City Council.
Additionally, Mr. French outlined the proposed rent cap for the first 24 months and a maximum annual rent increase of 5% for the following five years. Inclusionary housing requirements would be met through county Housing Choice Vouchers. The applicant sought a fee deferment plan spreading the fees over five years, with an initial payment of 20%, along with a 50% reduction in the Parks and Recreation fee.
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The City Council was presented with these proposed terms for consideration, with plans to finalize the details of the agreement with legal counsel and the applicant, pending approval.
Mayor Bellinger opened the podium for public comment or questions on this item.
Sherry Hill mentioned that while she had no issue with the fee deferral, her concern lay in the affordability of the proposed senior housing project. Sherry explained that many seniors, including herself, would find it challenging to afford the market rate of $1,600 per month. She urged the City Council to carefully consider the fee reduction and emphasized that most seniors were not seeking housing at such a high price point. She also pointed out that seniors actively participate in and support various recreational activities and events, underscoring the importance of affordability in senior housing.
Ann Shaddix inquired whether a market study had been conducted to determine the number of seniors in the area, their income levels, and whether the proposed senior housing project addressed the needs of those in the middle-income group.
Development and Community Services Manager French indicated that such an analysis had not been prepared, as it was a private development's responsibility to understand the market.
Ann Shaddix also asked if the monthly rent of $1,600 for the proposed apartments included services like housekeeping or meals and expressed interest in seniors having the opportunity to provide input into the final design of the apartments and participate in discussions with the builders.
Mayor Bellinger clarified that the level of involvement in the project's design would likely be at the discretion of the developer, as this is a private development not using city resources or land. He added that the developer may or may not choose to incorporate input from seniors into their plans.
Councilmember Walker sought clarification on whether approving the private developer's project would hinder the City's pursuit of another senior development. City Manager Romo confirmed that this project is separate from the City's other senior housing project with CCH.
Jeff Sales, the applicant, mentioned that the project would not offer additional services such as housekeeping or meals but would incorporate solar panels to reduce tenants' electric costs.
Councilmember Strohman raised questions about affordability for seniors in Escalon and whether a market study had been conducted to assess their ability to pay the $1,600 monthly rent. Jeff Sales noted that no specific study for Escalon had been conducted but cited a similar project in Modesto with comparable rent prices.
Mayor Pro Tem Hagan highlighted a distinction between two housing needs in the town of Escalon:
fair market housing and attainable housing and expressed concern about potential challenges arising from this distinction. He also proposed having a conversation with the senior residents to gather their input on the project, especially regarding any features or aspects that could be deal-breakers for them.
Jeff Sales agreed to meet with the seniors and consider their feedback, although he stated he didn't want their input to be a condition for the project.
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Mayor Pro Tem Hagan emphasized the importance of conducting a thorough assessment of the actual housing need in Escalon, particularly for fair market housing. He suggested staff should confirm this need before proceeding with the senior housing project to ensure it aligns with the town's requirements.
Mayor David Bellinger clarified that initially, Mr. Sales had sought reductions in sewer and water fees, but currently, the request only pertained to Parks and Recreation fees.
Development and Community Services Manager Jaylen French mentioned that apart from the Parks and Recreation fee, all other fees would remain at 100% of the city's standard rates. He also explained that the staff had recommended against reducing the sewer and water connection fees because these fees covered direct costs incurred by the city. Instead, he stated staff proposed a slight increase in the reduction of the Parks and Recreation fee to help cover expenses related to city services.
Mayor Bellinger expressed his anticipation for the project, noting that it appears promising. He emphasized that the success of the project lies with the developer and not the city, as it carries the risk of adjusting rents or other aspects if necessary to fill the units.
Mayor Pro Tem Hagan expressed support for the project, pending confirmation of the actual housing need in Escalon. He highlighted the importance of ensuring the demand for housing in the town before proceeding, to avoid importing residents from elsewhere.
City Attorney Anne Branham suggested to the council the idea of creating a broadly applicable policy for fee deferrals and reductions. This policy would take the form of a resolution and could be implemented immediately. It would not only apply to the current project but also to future projects, ensuring consistency and fairness. However, some council members expressed a preference for evaluating fee adjustments on a case-by-case basis, taking into account the unique characteristics of each project.
Councilmember Jeremy Engle expressed support for the project, emphasizing the potential benefits of attracting new residents who could contribute to the local economy. He also mentioned the need to address housing-related issues in Escalon to avoid external mandates and commended the efforts of Development and Community Services Manager Jaylen French and Mr. Sales.
City Attorney Anne Branham discussed the pros and cons of having a blanket policy versus case- by-case evaluations and suggested a potential approach to mitigate risks associated with a policy while retaining some discretion.
Councilmember Engle highlighted the importance of encouraging development in Escalon to support the local economy and infrastructure needs, and he supported a case-by-case approach for fee adjustments.
MOTION - It is moved/seconded by ENGLE/STROHMAN to approve the request for reduced and deferred development impact fees for Cornerstone Construction for proposed senior housing project referred to as Countrywood Cottages and allow the City Manager or her designee to execute an
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agreement for the fee reduction/deferral. Motion carried unanimously (5-0) MINUTE ORDER 48-
8. Receive a Presentation on the FY 2023-24 Preliminary Budget Overview for the City's General Fund and Water Enterprise Fund(s) and provide any further direction to staff as the balance of the Proposed Budget is completed.
Andy Heath introduced himself as the financial consultant to the city and outlined the purpose of his presentation. He stated that he aimed to make the budget process more transparent and sustainable. He provided updates on the preparation process and discussed the preliminary budget for the 2023-2024 fiscal year, emphasizing the need for clarity in understanding revenues and expenditures. Mr. Heath also mentioned his work on the Water Enterprise Fund and ongoing evaluation of the sewer enterprise fund. He acknowledged the previous draft budget and his efforts to enhance transparency in the budget document.
Finance Consultant Andy Heath provided an update on the fiscal year 2022-2023 activities, highlighting that the fiscal year ended on June 30th. He explained the accrual process, where certain revenues and expenses are accounted for after the fiscal year's end. This includes revenues like sales tax and property taxes that may come in after June 30th but are attributed to the previous fiscal year.
Mr. Heath also mentioned the accrual of payroll and payables, ensuring a clear understanding of financial balances.
He compared the current financial status to what was presented previously by the previous Finance Director, noting that there wasn't much change. He noted the 23/24 budget had a deficit of approximately $1.2 million, meaning that expenditures exceeded revenues. This deficit could primarily be attributed to the loss of a major sales tax contributor, a Ford dealership, which had ceased operations in the city, resulting in a $400,000 reduction in annual sales tax revenue.
Additionally, Mr. Heath highlighted that there were nearly $600,000 in one-time costs included in the budget for the fiscal year 23/24. He explained that these costs were specific to that fiscal year and would not recur in subsequent years. He emphasized that healthy reserves were essential for covering one-time expenses and unexpected events, such as economic shifts.
Councilmember Strohman thanked Mr. Heath for his presentation and emphasized the importance of considering all possible financial scenarios.
Councilmember Engle inquired about how Andy Heath's services were engaged, how many forecasts he had completed, and the success rate of these forecasts in cities facing similar financial situations. He also asked about the time required for a city to recover from such a situation.
Andy Heath explained that he provides forecasts to give cities a chance to address their financial challenges. He stated he typically creates a 2-3 page summary of his findings and offered to provide one for this city.
Councilmember Walker expressed gratitude to Andy Heath for his presentation.
Sherry Hill thanked Andy Heath for the presentation and appreciated his efforts to present the information in an easily understandable manner.
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September 5, 2023
9. Discuss Council/Manager Goals for FY 2023-2024 and provide direction to staff.
City Manager Romo presented item and discussed the Council's goals for the fiscal year 23/24. She recapped that council reviewed previous goals and considered new ones, including adopting a strategic plan, exploring revenue options, improving community communication, and prioritizing school sidewalk improvements. However, there was uncertainty about whether to continue the goal of "increased efforts to address code enforcement requests" from the previous year.
Mayor Pro Tem Hagan sought clarification, concerned about potential overzealous code enforcement.
City Manager Romo explained that the goal aimed for proactive enforcement, particularly for public safety issues.
Mayor David Bellinger expressed his view that the current system, which combines complaint- driven enforcement with attention to health and safety concerns, was working effectively. He stated he saw no need to increase efforts in a way that might lead to unnecessary enforcement actions.
Councilmember Malinda Walker echoed this sentiment, agreeing that the existing approach had been successful and that a goal related to increasing code enforcement efforts might not be necessary at this time.
Council considered making a plan for the city's future and how it relates to economic development.
Council agreed that dealing with economic challenges, especially the loss of sales tax income, is crucial. They discussed looking for new ways to get money for the city, spending money more wisely, and thinking about a sales tax proposal for the 2024 election.
Councilmember Strohman thanked Mayor Pro Tem Hagan for stressing the importance of having a plan. They agreed that making a strategic plan should be their top goal for the next fiscal year.
COUNCIL COMMUNICATIONS AND FUTURE AGENDA ITEMS
Councilmember Strohman informed everyone about the upcoming 9/11 ceremony hosted by the Escalon Pire Department on September 11, 2023, and encouraged the public to attend. He alsc expressed gratitude to Ann Shaddix for her three years of service as a Commissioner on Aging anc wished Elsa Sandoval, the newly appointed primary Commissioner on Aging, good luck in her role.
Councilmember Strohman appreciated Community and Development Manager French for reaching out to local businesses and commended his efforts in the community.
Councilmember Walker thanked Andy Heath for his presentation and acknowledged Jaylen French's work in the local community. She also reminded the public about the upcoming Lions Club car show on Main Street.
MINUTES
Escalon City Council
September 5, 2023
Councilmember Engle expressed thanks to Deputy City Clerk Ivett Arevalo for improving the meeting minutes. He shared concerns from a senior resident about sidewalk safety on Main Street Park, particularly regarding the transition between concrete and grass, which may pose a tripping hazard. He suggested addressing this issue to prevent potential legal problems.
City Manager Romo mentioned that staff had met with the concerned individual and would involve the city engineer in addressing the matter. Councilmember Engle asked if this issue should be brought back as an update, to which City Manager Romo agreed Mayor Pro Tem Hagan thanked the staff for their diligence and expressed his intent to propose a resolution stating that the City would not close for COVID if needed. He emphasized the importance of not forcing anyone's health decisions and wanted businesses to know that the council supports them if they wish to remain open.
Councilmember Engle voiced his support for Mayor Pro Tem Hagan's proposal.
City Manager Romo agreed to add this item to the Agenda next meeting for discussion.
Mayor Bellinger thanked everyone for their participation in the late City Council meeting. He expressed gratitude to the staff for their hard work and mentioned the upcoming car show, as well as the American Legion's annual fundraising breakfast before the car show.
Mayor Bellinger adjourned the meeting to closed session at approximately 10:39 P.M.
CLOSED SESSION
6. Conference with Labor Negotiators, Cal Gov't. Code §54957.6 Agency designated representative: Dominique Romo, City Manager Employee Organization: Escalon Police Officers Association (EPOA)
ADJOURNMENT
Council returned from Closed Session at approximately 11:10 PM. All Councilmembers were present for the duration of the meeting. No reportable action was taken.
There being no further business, Mayor Bellinger adjourned the meeting at 11:10 P.M.
Respectfully Submitted,
revali
Ivett Arevalo, Deputy City Cterki