MINUTES OF
REGULAR MEETING
December 19, 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: Giles - Marsigli - Bonta – Ford - Mayor Nagy Staff present: Interim City Manager Melanie Correa, City Attorney Ann Siprelle, , Economic & Community Development Director Westervelt, Recreation Manager Tiffany Vitorino, Police Chief Ruben Chavez, Finance Director Jenny Morrison, Administrative Assistant Desirae Porras, City Engineer Mario Gouveia, Fire Chief Pat Borrelli, and Public Works Director Gary Ingram.
APPROVAL OF AGENDA
Council member Bonta made a motion to approve the agenda.
The motion was seconded by Council member Marsigli and carried 5-0.
DECLARATIONS OF CONFLICT OF INTEREST
Mayor Pro Tem Ford advised of his abstention from the Richard A. Ford II warrant.
PRESENTATIONS
None.
PUBLIC COMMENT
Robert Villalobos, Tip Top Farms, apologized for the odorous smell reported from the business and advised the issue has been resolved.
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?
1. Minutes of the December 5, 2023 Regular Meeting
Recommendation: Review and approve
2. Warrants
Recommendation: Review and ratify
3. Treasurer’s Report – November 2023
Recommendation: Review and file
4. Direct Staff to Send Out Warrant Checks Prior to January 16, 2024 Regular Council Meeting
Recommendation: Review and approve
5. Approve Request for Use of City Streets for Tip Top Farms Anniversary Event Recommendation: Review and approve
6. Approve Addition of Two Full-Time Police Sergeants to Budgeted Elected Officials and Staff Listing
Recommendation: Review and approve
7. Approve Appointment and Reappointments to Gustine Planning Commission Recommendation: Review and approve
Mayor Nagy introduced the consent calendar.
Council member Marsigli advised of correction need to language on page 8 in the third paragraph, where “sphere of influence” should be” City limits”, to which Interim City Manager affirmed.
Council member Marsigli inquired if vendors will be non-competing relating to consent calendar item #5, to which Recreation Manager Vitorino advised they are noncompeting vendors.
Council member Giles made a motion to approve consent calendar items #1 and #3-
7. The motion was seconded by Council member Bonta and carried 5-0.
Mayor Nagy re-introduced consent calendar #2.
Council member Marsigli made a motion to approve consent calendar item #2.
The motion was seconded by Council member Bonta and carried 5-0, with Mayor Pro Tem Ford abstaining from the Richard A. Ford II warrant.
ADMINISTRATIVE AGENDA
8. PUBLIC HEARING – Consider Approving Site Inventory List for Sixth Cycle Housing Element Submission
1. Receive Staff Report
2. Open the public hearing
3. Receive public comment
4. Close the public hearing
5. Consider a motion to approve the site inventory list for the City’s Sixth Cycle Housing Element submission
Economic & Community Development Director Westervelt presented the staff report.
Mayor Nagy opened the public hearing at 6:47 P.M.
Keith Collins, 76 Linden Avenue, presented Council with a printout of his concerns with the required RHNA numbers, and the City’s suggested over-allocation in staff’s recommended site inventory.
The public hearing was closed at 6:49 P.M.
Council member Marsigli inquired the dwelling unit assumption on site 16, to which Economic & Community Development Director Westervelt answered 62 sites and confirmed 10 dwelling units per acre.
Council member Marsigli inquired if the minimum dwelling units for an R-3 zone is 20, to which Economic & Community Development Director Westervelt advised it is 20 dwelling units for an R-3 only if it is being rezoned.
Council member Marsigli inquired if R-3 zoning designation will be reflected as minimum 10 dwelling units and maximum 15 dwelling units in the updated City code, to which Economic & Community Development Director Westervelt affirmed and advised that would be staff’s recommendation for Council approval.
Council member Marsigli inquired Economic & Community Development Director Westervelt to address Mr. Collins’ concern relating to the current site inventory unit allotment, to which Economic & Community Development Director Westervelt advised in this process, the City is unable to split lots to meet RHNA numbers without providing additional units and also stated the City is committed in certain ways to the sites rezoned in the previous cycle.
Mayor Pro Tem Ford inquired if 201 units is not sufficient to meet the target, to which Economic & Community Development Director Westervelt advised she was unsure where that figure was coming from. She also advised the sites already included as part of the 5th cycle, do not reach the RHNA requirements and explained the addition of site
12. Council member Marsigli inquired if the City’s entire moderate and above moderate allocations are within the Southeast Annexation project, to which Economic & Community Development Director Westervelt answered no and referred to exhibit C which outlines the income threshold unit count by site.
Council member Marsigli inquired the total amount of units for site 16, to which Economic & Community Development Director Westervelt advised the total is 62 units.
Mayor Pro Tem Ford inquired if the Southeast Annexation project will encompass moderate income units, to which Economic & Community Development Director Westervelt advised she did not have that information available but could confirm that above moderate numbers will be met within that area.
Council member Marsigli inquired on 5th and 6th Avenue being labeled as moderate when they are zoned R-4, to which Economic & Community Development Director Westervelt advised the R-4 zoning designation is not only comprised of low-income units.
Council member Marsigli inquired on the assumption of a site not having all low-income units, to which Economic & Community Development Director Westervelt advised the income capacity level numbers are based upon formulas and zoning density and stated the unit numbers and income level counts were provided by Rincon.
Mayor Nagy inquired if R-3 is considered medium density, to which Economic & Community Development Director Westervelt affirmed.
Mayor Nagy inquired if exhibit B fulfills the required moderate units, to which Economic & Community Development Director Westervelt advised site 16 is divided between above moderate and moderate-income levels.
Interim City Manager Correa advised zoning densities do not correlate directly with income levels, the two components are separate considerations for the Housing Element.
Mayor Nagy provided his opinion on proceeding with sites 8, 9 and 12 and rezoning site 10 back to highway commercial, to which Economic & Community Development Director Westervelt advised the City is unable to rezone site 10 as highway commercial because it was previously zoned in the 5th cycle Housing Element.
Mayor Nagy inquired if the City will get credit in the next Housing Element for unit overages on sites 8-10, 12 and 16, to which Economic & Community Development Director Westervelt advised she was unable to know what the State will require and approve in the next Housing Element.
Council member Marsigli inquired on rezoning if the site was replaced, to which Economic & Community Development Director Westervelt advised the City will not meet its RHNA target numbers without having all the sites listed in exhibit B.
Mayor Pro Tem Ford inquired on the formula to finding the number of units that will be built in certain parcels, to which Economic & Community Development Director Westervelt advised Rincon, the Multi-Jurisdictional Housing Element consultant, provides the formulation of the number of units that will be built on certain parcels.
Mayor Nagy advised of his conversation with a Mayor in another City in Merced County and stated a site selection has not been brought to their Council, to which Interim City Manager Correa advised she contacted the Cities in Merced County and reported many of the Cities have an up to date General Plan so the initial site selection based off of Rincon’s site identification have been submitted without Council involvement. She also advised all but two jurisdictions plan to involve their Council when the draft element is available for public inspection and comment. She further advised staff in Gustine brought it to Council and the community sooner to receive input prior to further review.
Mayor Pro Tem Ford inquired if a zone is changed in the General Plan, during the next Housing Element could the City use that property that was rezoned, to which Economic & Community Development Director Westervelt advised of the importance to update the City’s General Plan to prepare for the next update cycles.
Council member Marsigli inquired if exhibit A will be included in the paperwork that goes to the state, to which Economic & Community Development Director Westervelt advised there will be much more than exhibit A included.
Council member Marsigli made a motion to approve exhibit B site inventory with exhibit C spreadsheet and with site 16 to remain as R-3 to move forward with the City’s 6th cycle Housing Element submission.
The motion was seconded by Council member Bonta and carried 5-0.
9. Consider Resolution Amending Specific Project Deposit Collection Language 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.
Anthony Cannella, applicant Engineer, Northstar Engineering, inquired clarification on the City fees for the Southeast Annexation project, to which Economic & Community Development Director Westervelt advised 2.5% for the plan check and an additional
2.5% for the inspections.
Mr. Cannella provided his opinion on adjusting the fee reasonably for the applicant and provided details on City of Merced and Merced County’s fee and deposit amounts for comparison. He asked Council to lower the deposit in order for the Southeast Annexation project to move forward.
Council member Bonta inquired if Merced has a flat fee or if it depends on the size of the project, to which Mr. Cannella advised it is based on a percentage.
Ron Katakis, applicant, advised of his mistake in his letter in regards to the comparison with an encroachment permit. He voiced his concerns with paying a large deposit for the project and advised of past projects he has worked on. He further advised of ramifications for the City and the residents depending upon the City’s decision. He provided Council with a fee description printout. He asked Council to consider a reasonable fee schedule.
Mike Rasmussen, SEGMP property owner, expressed his opposition on the fee amount the City is requiring from Mr. Katakis. He advised he would like to see the project move forward.
George Petrulakis, Counsel for Mr. Katakis, provided his opinion on lowering the deposit cap. He expressed appreciation for how far staff has come to help move the project forward.
Mayor Pro Tem Ford advised of issues that could arise if the project does not move forward and expressed agreement on creating a deposit cap.
Council member Marsigli inquired clarification on the Comcast deposit, to which Economic & Community Development Director Westervelt advised Comcast paid 5% for the planning review and advised Comcast would not be affected by splitting up the
2.5% fees.
Council member Marsigli inquired if splitting out the front-loaded infrastructure has been done before. She advised she would like to see a more realistic deposit cap and asked City Engineer Gouveia his opinion of what a realistic cap would be, to which Mr.
Gouveia advised it is impossible to know what’s realistic and he stated the concerns and issues with proceeding with smaller deposits.
Council member Giles inquired the amount of people needed for the review process, to which Mr. Gouveia advised there are multiple consultants working on the review process. Council member Giles suggested getting that information and evaluating sixmonth costs.
There was further discussion in regards to a reasonable deposit cap amount.
Mr. Katakis advised of his willingness to make additional deposits instead of paying one large deposit and expressed frustration with the amount of money he has put out already for the project.
Council member Bonta made a motion to approve the resolution with the $175K cap being amended to $80K.
The motion was seconded by Council member Giles and carried 5-0.
10. DISCUSSION & DIRECTION – Regional Early Action Planning Grant Submittal
1. Receive Staff Report
2. Receive public comment
3. Conduct discussion and provide staff with direction on remedial option Economic & Community Development Director Westervelt presented the staff report.
There was no public comment.
Council member Marsigli inquired if the money can be used towards the Housing Element update, to which Economic & Community Development Director Westervelt affirmed.
Council member Marsigli inquired if the City needs the money for the Housing Element update, to which Economic & Community Development Director advised the City should have enough to complete majority of the zoning work. She further advised she will bring further funding options for zoning in a future meeting.
Council member Marsigli inquired if funds were to be used towards a General Plan update, would the funds need to be used by a certain date, to which Economic & Community Development Director Westervelt affirmed and advised it would not be used to complete the whole General Plan it will be used to fund portions of the General Plan and the City would find another funding source to complete the remaining portions of the General Plan
Council member Bonta inquired if allocating the funds is the same as the funds being spent, to which Economic & Community Development Director Westervelt advised she would bring clarification to Council when they are presented with formal acceptance action. Council directed staff to move forward with the application submittal and include a General Plan update in the application.
CITY DEPARTMENT REPORTS
Economic & Community Development Director Westervelt updated on new businesses opening in the City. She also updated on the Broadband projects. She advised Comcast is currently doing additional onsite work in order to resubmit plans. She also advised Unwired has submitted plans and Engineering will have comments back to Unwired by January 7th. She updated on her call with USDA and advised they are in the review process with completion estimated by end of January.
Council member Giles inquired clarification on the Broadband projects, to which Economic & Community Development Director Westervelt advised Unwired is completely underground, and Comcast’s project is not completely underground. She also advised the City cannot force an entirely underground scope.
Council member Marsigli inquired more information on Comcast’s project referencing 110 poles, to which Economic & Community Development Director Westervelt advised she was unsure if Comcast was adding additional poles.
Council member Marsigli inquired on the process Comcast would have to complete to add additional poles, to which Economic & Community Development Director Westervelt confirmed of the process they would have to complete to add additional poles.
Mayor Nagy reiterated whether most of poles on the plan were existing, to which Economic & Community Development Director Westervelt advised she would report back.
Public Works Director Ingram advised that he had nothing to report.
Council member Bonta inquired on the activity at the Adult school field, to which Public Works Director Ingram advised Public Works is excavating to install isolation valves on Thursday.
Council member Bonta inquired if the City is notifying the residents, to which Public Works Director Ingram advised they are delivering door hangers to residents affected tomorrow.
Fire Chief Borrelli advised that he had nothing to report.
Finance Director Morrison advised that she had nothing to report.
Recreation Manager Vitorino updated on the Miss Gustine Court Toy Drive and Lions Club Canned Food Drive and advised they were provided for 55 families thanks to the great amount of donations. She advised of projects she is currently working on. She informed Council of her conversation with Merced County in regards to the County focusing on business events, to ensure the City has granted approval, and all food permits are completed. She wished everyone a Merry Christmas.
Police Chief Chavez recognized Police Volunteer Kathie Borba, who was not in attendance at the earlier meeting, for all of her hard work. He informed Council the City’s first motorcycle officer, Reserve Edward Gonzales, graduated from the Motorcycle POST Academy last week. He advised the Community Services Officer, Jose Gallardo, has been busy with loose dogs. He asked the community to reach out if they are aware of any dogs left in cars. He wished everyone a Merry Christmas.
Mayor Nagy inquired if both Police Department motorcycles are running, to which Police Chief Chavez affirmed.
CITY ATTORNEY REPORT
None.
CITY MANAGER REPORT
Interim City Manager Correa informed Council of vacancies on the Airport Commission.
She advised of her meeting with Central California Irrigation District in regards to the Southeast Gustine Master Plan area. She also advised Public Works Director Ingram arranged a department meeting with CCID to discuss valve locations throughout town to strengthen the partnership between agencies. She updated on AB1637, which dictates all local agencies in the state have a .gov or a ca.gov website domain before January 1, 2029. She recognized City staff and expressed appreciation for the City being their number one priority. She wished everyone a Merry Christmas.
CITY COUNCIL REPORTS
Council member Giles advised that he had nothing to report.
Council member Bonta wished everyone a Merry Christmas and Happy New Year.
Council member Marsigli thanked staff for the Employee Appreciation Luncheon. She advised she would like an answer in regards to additional poles being installed throughout the town. She wished everyone a Merry Christmas.
Mayor Pro Tem Ford wished everyone a Merry Christmas.
Mayor Nagy expressed excitement seeing Gustine Family Food in the Martino Market.
He thanked all volunteers for their assistance. He wished Fire Captain Adam Kernaghan the best of luck. He wished everyone a Merry Christmas.
CLOSED SESSION
None.
ADJOURNMENT
Mayor Nagy adjourned the meeting at 8:16 P.M.