MINUTES OF
REGULAR MEETING
February 21, 2023
CALL TO ORDER - PLEDGE OF ALLEGIANCE
Mayor Nagy called the meeting to order at 6:30 P.M. and conducted the pledge of allegiance.
ROLL CALL
Council Members: Marsigli – Brazil – Mayor Pro Tem Ford - Mayor Nagy Staff present: City Manager Anna Nicholas, City Attorney Ann Siprelle, Recreation Manager Tiffany Vitorino, Economic & Community Development Director Jami Westervelt, Finance Director Jennifer Morrison, Public Works Director Jesus Chavez, Police Chief Ruben Chavez, Fire Chief Pat Borrelli, and Administrative Services Director Melanie Correa
Council member Bonta was absent.
PRESENTATIONS
1. New Employee Introduction and Badge Pinning Ceremony Steven Hollis, Reserve Police Officer
Anthony Becerra Alvarez, Reserve Police Officer
Sepandar “Sam” Danesh, Reserve Police Officer
Police Chief Chavez introduced and provided a brief background on each of the Reserve Police Officers. Mayor Nagy administered the oath of office and family members were invited to pin badges on the Reserve Officers.
PUBLIC COMMENT
Mayor Nagy introduced Gavin Cline, Field Representative for Congressman Duarte.
Mr. Cline introduced himself and advised Senator Duarte is on three committees of importance to the City: Natural Resource, Infrastructure and Agriculture.
CONSENT CALENDAR
All matters listed under the Consent Calendar are considered routine and may be approved by one action of the City Council, unless any member of the City Council wishes to remove an item for separate consideration.
Are there any items on the consent calendar that any member of the public would like to comment on?
2. Minutes of the February 7, 2023 Regular Meeting
Recommendation: Review and approve
3. Warrants
Recommendation: Review and approve
4. Approve Resolution Naming and Confirming Signatories on the City’s Banking Accounts
Recommendation: Review and approve resolution
5. Approve Request for Street Closures and Waiver of City Staff and Services for Every 15 Minutes Program
Recommendation: Review and approve request
6. Approve Gustine Airport Capital Improvement Plan Submission Recommendation: Review and approve submission
7. Approve Resolution Designating Police Chief as Public Convenience or Necessity Officer for Department of Alcohol and Beverage Control License Applications Recommendation: Review and approve resolution
8. Approve Resolution Authorizing City Manager to Enter into Memorandum of Understanding with La Familia Central Valley for COPS CIT Grant Recommendation: Review and approve resolution
9. Approve Resolution Accepting Engie Solar Project as Complete, and Directing City Clerk to File a Notice of Completion
Recommendation: Review and approve resolution
Mayor Nagy introduced the consent calendar.
There was no public comment.
Council member Brazil inquired on consent calendar item #9, to which Administrative Services Director Correa advised of the decrease in energy costs and explained “excusable events” as per the Energy Services Contract.
Council member Marsigli advised of a correction in the February 7th minutes.
Council member Brazil inquired on the warrant to Grover Landscape, to which City Manager Nicholas advised Grover completed emergency work due to storm damage.
Council member Brazil commented on the price to remove the trees, to which City Manager Nicholas advised the City had Grover do preventive low-grade work on trees needing to be removed. Public Works Director Chavez elaborated the City is using Grover for emergency purposes only.
Council member Ford advised of his abstention for the Richard A. Ford II warrant.
Council member Brazil made a motion to approve the consent calendar with the amended minutes.
The motion was seconded by Mayor Pro Tem Ford and carried 4-0, with Council member Bonta absent and Council member Ford abstaining from the Richard A. Ford II warrant.
ADMINISTRATIVE AGENDA
10. PUBLIC HEARING – Consider Resolution Approving Amendments to Previously Adopted Conditions of Approval of Vesting Tentative Subdivision Map; R Katakis; APNs: 063-180-029 and 063-180-030
1. Receive Staff Report
2. Open the public hearing
3. Close the public hearing
4. Consider a motion to approve Resolution approving amendments to the previously adopted conditions of approval of the Katakis vesting tentative subdivision map for Southeast Gustine Development
City Manager Nicholas introduced Planning Consultant Brad Kilger.
Mr. Kilger presented the staff report.
Mayor Nagy opened the public hearing at 7:25 P.M.
George Petrulakis, applicant Attorney, advised that Mr. Katakis understands the staff recommendation on request #8, reimbursement of prior VTSM processing expenditures and is not seeking any action from Council on this matter tonight. He further relayed that the applicant’s request to gain an additional 24-month extension on the VTSM would also be addressed at a later date. Mr. Petrulakis provided additional information on each request presented by staff in order of importance to establish a viable project:
Frist, Mr. Petrulakis advised that request #2, approve reimbursement agreement in concept, is important to the applicant but can be discussed in the final map process.
He provided information that the burden falls on the first to develop with regard to capital outlay on the project.
Second, Mr. Petrulakis addressed request #5, the will serve letter, advising the applicant understands the reason for staff’s recommendation for a 5-year expiration date, which is appropriate.
Third, Mr. Petrulakis advised the applicant agrees with Planning Commission’s recommendation to item #4, in regards to the roundabout.
Fourth, Mr. Petrulakis addressed request #3, the Planning Commission’s recommendation that Council require the applicant to form a Community Facility District to fund City general services.
Fifth, Mr. Petrulakis addressed request #1, timing of payment of impact fees. He advised the applicant prefers the Planning Commission recommendation that fees be paid at Certificate of Occupancy and not the staff’s proposed alternative condition, which would require payment at issuance of building permit if circumstances changed as permitted by State law. He also advised the applicant initially had suggested deferral to close of escrow. He stated collecting at final inspection is in the best interest of the City.
Council member Brazil inquired input on requests #8 and #9, to which Mr. Petrulakis advised that request #9 was initiated by the applicant after the staff report was published, and that the request relates to authorizing a new 24-month term as of the date of approval of the vesting tentative map amendment.
Mr. Petrulakis also clarified that request #8 refers to reimbursement for the monies already spent at processing.
Barbara Adams, 1020 Brentwood Avenue Gustine, commended the Planning Commission for their thoroughness and recommendations at their November 30th meeting. She advised she was giving the rest of her public comment period to the next speaker.
Charlie Adams, owner of property located at Mills Rd and Sullivan Rd., addressed his concerns with requests #1, #3, #4, #5, and #10. He inquired why the term “Certificate of Occupancy” is being used when the City’s Building Official has shared certificates of occupancy are rarely issued. He shared his opposition of being included in a CFD or LLD. And inquired whether his parcels would be subject to such districts due to their location within the Southeast Gustine Master Plan area. He inquired where the crosswalk would be located on Sullivan Rd. He shared his opinion on the utility will serve letter being overly generous, and whether that would negatively affect other builders within the time period of the letter.
Applicant Ron Katakis addressed the utility will serve letter. He advised of the importance of the letter on the viability of the project.
He followed up on the deferral of fees being due at final inspection or at the Certificate of Occupancy. He advised this causes liability on the project.
He inquired if changing the timing of when impact fees must be paid is allowed if he has an approved tentative map. Mr. Petrulakis added that an approved tentative map gives the applicant vested rights.
There was a brief discussion in regards to imposing changes to a tentative map after vesting. City Attorney Siprelle pointed out that the approved vesting tentative map requires fees to be paid before issuance of building permits.
Council member Marsigli advised Public Facility Districts are a condition and were mentioned at a prior Planning Commission meeting in April 2022.
Brad Kilger provided clarification on final inspection vs. Certificate of Occupancy. He encouraged the City to put a Certificate of Occupancy procedure in place.
With respect to questions raised under public comments, he advised if the surrounding property owners do not want to annex into a CFD they will not be required to do so, their involvement in any LLD or CFD would be only applicable if their property was annexed into the City. He also advised properties in the Southeast Gustine Master Plan area, but not currently within the City’s incorporated boundaries, would only be annexed in if they wish to develop their property.
He confirmed that the lighted pedestrian crosswalk would be located across Sullivan Rd.
On the utility will serve letter, Mr. Kilger advised the City set-aside 20% of the total units in the City Engineer’s water capacity study as a contingency therefore, staff is confident that the capacity will be available for the Katakis subdivision over the next 5 years.
Council member Marsigli inquired if the City Engineer’s calculations consider ADU’s and the potential drought impacts, to which Mr. Kilger affirmed that ADU’s were considered, however he was unsure about the drought and whether that was factored in. He also advised the City Engineer looked at the water availability based upon the City’s aquafer and considered the City’s water allocation from the regional water agency, and it was determined the will serve letter would be within the available connections.
Mayor Pro Tem Ford inquired if the entire annexed property would be included in the CFD/LLD. Mr. Kilger advised that was a possibility, but staff has not had a chance to look at the various funding options available and advised Council to have further conversations on which option would be the most appropriate.
Craig Christenson, 657 West Avenue Gustine, expressed confusion with the water calculations. He advised of issues with existing low water pressure throughout the City.
He conveyed his opposition on reimbursement fees for development. He advised the City’s existing infrastructure is in need of upgrades to the water lines, storm drain lines and sewer lines. He provided his opinion on the developer taking the risk if they want to develop during this time. He also stated if a roundabout has to be put in the developer should pay, not the City.
The public hearing was closed at 8:15 P.M.
Mr. Kilger introduced request #1 for consideration.
City Manager Nicholas advised a Capital Improvement Plan was not in place in the past but that having one in place would allow the City to be able to collect the fees at the issuance of the building permit.
City Attorney Siprelle advised it is common for cities to collect at the time of issuance of building permit.
Mayor Pro tem Ford inquired on the time frame from building permit to occupancy permit, to which Mr. Petrulakis advised the matter is more about cash flow.
Council member Marsigli made a motion to approve staff’s alternative condition #21, removing the last sentence “Fees shall be paid at the time of issuance of each permit”.
The motion was seconded by Mayor Pro Tem Ford and carried 4-0, with Council member Bonta absent.
Mr. Kilger introduced request #2 for consideration.
Council member Brazil made a motion to approve the recommendation of the Planning Commission.
The motion was seconded by Mayor Pro Tem Ford and carried 4-0, with Council member Bonta absent.
Council directed staff to work towards developing a new Public Facility Fee policy and procedures.
Mr. Kilger introduced request #3 for consideration.
Mayor Pro Tem Ford commented on the importance of the City recouping costs.
Mr. Kilger advised it is important to keep in mind that the new development cannot pay for the lack of prior services, only for the additional services the development creates.
Council member Marsigli advised of her position that a Community Facilities District (CFD) would be most appropriate.
Council member Brazil advised all services are needed and inquired what other cities have done in this similar situation, to which Mr. Kilger advised the City to consult with an expert in this matter. Mr. Kilger also advised that benefit assessment districts are becoming common.
Council member Marsigli inquired the price of a study, to which Mr. Kilger advised a study can range between $12K-$50K depending on the complexity of the study.
Council member Brazil inquired if the City has contacted the City of Newman to see what they have done in similar positions, to which Mr. Kilger advised they have not.
Council member Marsigli inquired on the difference between a tax and an assessment, to which Mr. Kilger advised assessments are direct charges for services placed on property tax bill, while a tax can be established for an indirect service.
Council member Brazil made a motion to approve Planning Commission recommendation and for staff to bring this item back for additional discussion.
City Attorney Siprelle suggested adding “Benefit Assessment District” in condition #22 as an alternative option.
The motion was seconded by Council member Marsigli and carried 4-0, with Council member Bonta absent.
Mr. Kilger introduced request #4 for consideration.
Council member Marsigli inquired whether the stop would be allowed considering this location was set to be a detour route for the 33/140 Roundabout project, to which Mayor Nagy advised the roundabout will likely be complete prior to the start of development.
Council member Brazil made a motion to approve the Planning Commission recommendation that the applicant is not required to construct a roundabout but shall construct a four-way stop with a lighted pedestrian crossing. The City will be responsible for constructing the roundabout when sufficient public facility impact fees are available.
The motion was seconded by Mayor Pro Tem Ford and carried 3-1, with Council member Bonta absent and Council member Marsigli in opposition.
Mr. Kilger introduced request #5 for consideration.
Mayor Pro Tem Ford made a motion to approve to issue the will serve letter for 157 residential water connections with a 5-year expiration date.
The motion was seconded by Council member Marsigli and carried 4-0, with Council member Bonta absent.
Mr. Kilger introduced request #6 for consideration.
Mayor Nagy inquired if the City can add the UPRC Permit fee to the cost of total fees, to which Mr. Kilger answered yes as it is a PFF project.
There was a brief discussion in regards to payments already made to the City.
Mr. Petrulakis advised staff to work on their PFF Development policy.
There was a brief discussion surrounding mixed communications from the prior City Manager relating to the responsibility of who should pay the UPRC permit fees.
Mayor Pro Tem Ford inquired on how long permits are valid for, to which the applicant advised he is unsure. Mr. Katakis further advised he would search through saved emails to solidify communications from the City’s prior City Manager.
Mayor Pro Tem Ford made a motion that the City should be responsible for the permit costs, with reimbursement coming ultimately through the City’s PFF policy.
The motion was seconded by Council member Brazil and carried 4-0, with Council member Bonta absent.
Mr. Kilger introduced request #7 for consideration.
Council member Brazil inquired on the current total, to which City Manager Nicholas estimated the amount to be ~$15K; but advised the accounting was still in a work in progress and therefore could not provide an exact number.
Mr. Kilger asked for a minute to speak to City Manager Nicholas and City Attorney Siprelle, to which Mayor Nagy granted the request.
After the brief sidebar, Mr. Kilger recommended Council approve the VTSM amendment application and to defer the decision to waive the processing fees for the VTSM amendment to a later date.
Council directed staff to bring the waiver request back at a future meeting.
Council member Brazil made a motion to approve the resolution, as amended by the City Council approving amendment of the Katakis VTSM.
The motion was seconded by Council member Marsigli and carried 4-0, with Council member Bonta absent.
11. Consider Resolution Amending Encroachment Permit Fees in Gustine User & Regulatory Fee Schedule
1. Receive Staff Report
2. Receive public comment
3. Consider a motion to approve the resolution
Economic & Community Development Director Westervelt presented the staff report.
Council member Marsigli inquired what other cities do, to which Economic & Community Development Director Westervelt advised after researching, she could not find consistency on how cities handle these types of projects.
Council member Marsigli requested staff report Exhibit A, be added as Exhibit A to the resolution.
Nathan Olli, Comcast Representative, advised Comcast is bringing full fiber build- out to the City of Gustine. He advised Comcast’s goal is to have this project completed in 2023. He also advised he would come back to a later meeting to provide additional details on this project and their services.
Council member Marsigli made a motion to approve resolution as amended.
The motion was seconded by Mayor Pro Tem Ford and carried 4-0, with Council member Bonta absent.
CITY DEPARTMENT REPORTS
Police Chief Chavez advised he had nothing to report.
Fire Chief Borrelli updated on the success of their recent Fill the Boot fundraiser event, in which the department raised $5,683. He also advised the department is working on GHS’s Every 15 Minutes program.
Council member Brazil inquired why the City’s engine was rolling out to Santa Nella, to which Fire Chief Borrelli advised the engine is covering the City and County because the County truck is being repaired.
Finance Director Morrison advised she had nothing to report.
Economic & Community Development Director Westervelt advised she had nothing to report.
Recreation Manager Vitorino updated on the success of Paint Night and advised the next scheduled Paint Night event would be on April 28th. She informed Council of an upcoming Movie Night event on March 24th. She advised City staff will be visiting Gustine Elementary, Middle and High Schools for Career Days on March 23rd and March 24th. She reminded Council of Motors on Main event. She advised of her meeting with the Garden Club. She also advised the Historical Society displays on the Schmidt Park path kiosks were being installed. She informed Council she met with Miss Gustine Director Leslie Reynoso and the new Coordinator Amanda Oliveira, in regards to the pageant and float. She also informed Council of the Valley Children’s newspaper fundraiser, taking place on March 7th. Lastly, she updated on the stump removal project.
Public Works Director Chavez advised the roller equipment ordered last year was finally received today. He reminded everyone of the Gustine Clean-Up event on March 11th.
He advised Public Works will be having an Electric Mower demo on February 27th. He thanked everyone for the opportunity to work with the City. He applauded the Public Works staff.
Council member Marsigli inquired on the egret depredation permit renewal, to which Public Works Director Chavez advised the City has a valid depredation permit in place and recommended residents get ahead of their tree trimming.
Administrative Services Director Correa advised of an application received for the Airport Commission vacancy and reminded Council of the Planning Commission vacancy. She advised of the internal recruitment for a Police Officer. She also advised the City will be bringing updates to the Public Works Director job description to a future meeting and she stated recruitment for this position will be announced on the City’s website tomorrow.
CITY MANAGER REPORT
City Manager Nicholas addressed Council’s research requests from the Sanitary Sewer Management Plan item at their February 7th meeting. She advised after research the only revision that can be incorporated is the additional language associated with communications inserting building owners and property management into receiving communications. Ms. Nicholas also advised the remaining items are contingent upon either the Municipal Code or Industry Standards being updated and approved by Council. She addressed Mayor Pro Tem Ford’s inquiry on the street sweeper, expressing her hope to have an update on this by the end of March. She thanked Public Works Director Chavez for working with the City.
City Attorney Siprelle updated on her meetings on the Merced County Association of Governments JPA amendment. She advised the three main concerns were the term, arbitration, and voting on future amendments. She advised a 30-year term was agreed upon by the members. She also advised the County did not agree to arbitration but instead they added a mediation process. Lastly, she addressed voting on future amendments. She inquired Council’s consensus on what they prefer, to which Council agreed on a 2/3 approval by member agencies, not mandating the County in the vote.
CITY COUNCIL REPORTS
Council member Marsigli informed Council that she would be judging a speech contest at Gustine Elementary on March 8th.
Council member Brazil inquired on the Sullivan pipeline, to which City Manager Nicholas advised the City will be reaching out to the school.
Council member Brazil thanked Public Works Director Chavez for his services and wished him luck in Livingston.
Mayor Pro Tem Ford advised that Tri-Counties Bank had been experiencing a system outage.
Mayor Nagy advised of his upcoming Governing Board meeting at Merced County Association of Governments, where they would be discussing increased tipping fees from local landfills. He informed Council that Merced County Association of Governments dues are increasing. He thanked and commended the fire department on the Fill the Boot event. He reminded everyone of the Motors on Main event. He advised of a future Town Hall meeting in June. He reminded everyone of the Clean California event from March 17th – 27th and advised Caltrans has bags for free. He commented on his experience at the Paint Night event.
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION. Initiation of litigation pursuant to Government Code Section 54956.9: one case
After returning to open session, it was reported that there was no reportable action from closed session.
ADJOURNMENT
Mayor Nagy adjourned the meeting at 10:52 P.M.