Ripon City Council Minutes
TUESDAY, MAY 10, 2022 – 6:00 PM
REGULAR MEETING
CLOSED SESSION AT 5:30 PM
CLOSED SESSION: The closed session was called to order at 5:30 PM.
PUBLIC DISCUSSION ON CLOSED SESSION MATTERS: No one from the public wished to speak at this time.
ROLL CALL: Council Members Gary Barton, Daniel de Graaf, Leo Zuber, Vice Mayor Michael Restuccia, Mayor Dean Uecker.
OTHERS PRESENT: City Administrator Kevin Werner, City Attorney Tom Terpstra, Planning Director Ken Zuidervaart, City Clerk Lisa Roos.
IN THE MATTER OF:
(1) Real Property Negotiations pursuant to Section 54956.8 of the California Government Code - APN: 261-140-06.
(2) Potential or Pending Litigation pursuant to Section 54956.9(e)(1) of the California Government Code - 2 cases.
Planning Director Zuidervaart left the closed session at 5:51 PM.
Return to open session.
City Attorney Terpstra said Council met in closed session to discuss an economic development opportunity as well as receive an update on two litigation cases. No reportable action was taken.
PLEDGE OF ALLEGIANCE:
The meeting was called to order at 6:04 PM with Council Member Leo Zuber leading in the Pledge of Allegiance to the Flag.
INVOCATION:
Pastor Rex Rogers gave the invocation.
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ROLL CALL:
Attendee Name Title Status Arrived
Dean Uecker Mayor Present
Michael Restuccia Vice Mayor Present
Leo Zuber Council Member Present
Daniel de Graaf Council Member Present
Gary Barton Council Member Present
OTHERS PRESENT:
City Administrator Kevin Werner, City Attorney Tom Terpstra, Planning Director Ken Zuidervaart, Recreation Director Kye Stevens, Director of Public Works James Pease, Police Chief Ed Ormonde, City Clerk Lisa Roos, Deputy City Clerk Jane Kilgore, Information Systems Technician Hunter Crosby, Kelly Donohue, Lauren Reyna, Jack Mendonca, Joel Reyna.
PUBLIC DISCUSSION:
Jack Mendonca said he lives on Harvest Drive and would like to address the Council regarding the traffic turning from Pecan onto Harvest. He said people drive too fast and some neighbors have even had their vehicles hit. He would like to see a stop sign installed at the Pecan and Harvest intersection. He said there is currently a stop sign on Harvest where Harvest intersects with Pecan, but there needs to be one on Pecan as well, effectively making it a three way stop.
Mendonca said the stop sign on Harvest to Pecan is not helpful and people frequently do not fully stop. He said there is a tree on Harvest and Hughes that has been hit as a result of people driving too fast. Mendonca said it is hard to back out of the driveway because people come so fast around the corner from Pecan and while no pedestrians have been yet, he believes it will happen.
Joel Reyna, Director of San Joaquin Fair, said he wanted to stop by and let everyone know that after two years the San Joaquin County Fair is back and will take place June 3 - 5, 2022. He said tickets are on sale now. Reyna said they are excited about the fair attractions including popular tribute bands, a carnival and a petting zoo.
APPROVAL OF MINUTES:
Motion to approve the minutes of the Regular Ripon City Council meeting of April 12, 2022 and the City Council Workshop of April 25, 2022.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Michael Restuccia, Vice Mayor
SECONDER: Gary Barton, Council Member
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton
1. CITY COUNCIL - REGULAR MEETING - APR 12, 2022 6:00 PM
2. CITY COUNCIL - WORKSHOP - APR 25, 2022 11:00 AM
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APPROVAL OF AGENDA AS POSTED (OR AMENDED):
Council Member de Graaf requested Item 1.2H be pulled from the Consent Calendar for discussion.
Motion to approve the agenda as amended.
RESULT: ADOPTED AS AMENDED [UNANIMOUS]
MOVER: Daniel de Graaf, Council Member
SECONDER: Michael Restuccia, Vice Mayor
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton
1. CONSENT CALENDAR
Motion to approve the Consent Calendar as amended.
RESULT: ADOPTED AS AMENDED [UNANIMOUS]
MOVER: Daniel de Graaf, Council Member
SECONDER: Michael Restuccia, Vice Mayor
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton
1.1. Income
A. STATE OF CALIFORNIA
Sales Tax
(April 2021 $268,717.21)
FY 2021-22 YTD: $3,589,247
FY 2020-21 YTD: $2,525,229
Highway Users Tax
(March 2021 $27,885.90)
FY 2021-22 YTD: $293,070
FY 2020-21 YTD: $269,343
SB1 Street & Road Tax
(April 2021 $25,041.50)
FY 2021-22 YTD: $270,385
FY 2020-21 YTD: $238,343
$242,847.43
$28,080.26
$27,910.70
TOTAL $298,838.39
B. CCATT HOLDINGS
Monthly Acacia Avenue Cell Tower Lease Payment
April 2022 $1,212.72
C. T-MOBILE
Monthly Acacia Avenue Cell Tower Lease Payment
May 2022 $1,077.81
D. WASTE MANAGEMENT
Monthly Franchise Fee Payment – March 2022 $5,175.75
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E. BERTOLOTTI DISPOSAL, INC.
Quarterly Franchise Fee Payment – March 2022 $1,098.19
F. GILTON SOLID WASTE MANAGEMENT, INC.
Quarterly Franchise Fee Payment – March 2022 $12,410.89 G. PACIFIC GAS & ELECTRIC COMPANY
2021 Annual Electric Franchise Fees
2021 Annual Gas Franchise Fees
$108,942.16
$77,401.52
TOTAL $186,343.68
1.2. Bills, Invoices, Payments
A. LAW OFFICE OF THOMAS H. TERPSTRA
General Matters
Police Matters
Fire District Coordination
Bethany Home Society
Public Works Union’s Labor Practice
Complaint
$7,227.50
$885.00
$2,581.25
$425.00
$5,202.75
TOTAL $16,321.50
B. CITY OF STOCKTON
Ripon Share of Library Operating Costs 2021-2022
Invoice #104582 $22,200.00
C. CAVES & ASSOCIATES
Professional Services – Labor Relations
Invoice #22-095 $87.50
D. SOUTH SAN JOAQUIN GROUNDWATER SUSTAINABILITY AGENCY
SSJGSA Expenses
1 st Quarter 2022 - Invoice #Ripon 22Q1 $4,385.40
E. HARRIS & ASSOCIATES
Proposition 218 Fire Suppression Assessment Study
Progress Payment – Invoice #52168 $9,224.00
F. SAN JOAQUIN REGIONAL TRANSIT DISTRICT
Blossom Express Driver
February Invoice #AR113032
March Invoice #AR113058
$1,305.39
$1,621.75
TOTAL $2,927.14
G. SKW & ASSOCIATES
Design Services for the Senior Center Retrofit Project
Progress Payment Invoice #205820 $1,900.00
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H. ITEM H WAS MOVED TO ITEMS PULLED FROM CONSENT
I. D. A. WOOD CONSTRUCTION, INC.
Stockton Avenue Rehabilitation Project
Progress Payment – Invoice #14 $525,007.39
J. SORACCO, INC.
Well 19 Pump Station Project
Progress Payment – Invoice #6 $77,862.44
K. TERRACON CONSULTANTS, INC.
Stockton Avenue Rehabilitation Project
Materials Testing & Inspection Services
Progress Payment - Invoice #TG64166A $7,548.00
L. WGR SOUTHWEST, INC.
City Storm Water Permit Assistance
Progress Payment – Invoice #26665 $1,620.00
M. SHORELINE ENVIRONMENTAL ENGINEERING
Well 19 Pump Station & Site Design
Progress Payment – Invoice #944
Progress Payment – Invoice #945
$550.00
$924.00
TOTAL $1,474.00
N. TESCO CONTROLS, INC.
Well 19 – Motor Control Center Equipment
Invoice #0076455
$19,000.00
1.3. Miscellaneous Items
A. QUARTERLY INVESTMENT REPORT REVIEW
January 1, 2022 - March 31, 2022 Accept the City’s quarterly investment report for the period ending March 31,
2022.
B. SERVICE AGREEMENT - JOCELYN E. ROLAND, PH.D
Jocelyn E. Roland, Ph.D Approve and authorize the Mayor to sign the agreement with Jocelyn E.
Roland, Ph.D. for psychological
services for the Police Department in the
amount of $6,000 (funding source:
General Fund).
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C. PRICE PAIGE & COMPANY
Engagement Letters
Annual Audits
Approve and authorize the Mayor and
City Administrator to sign the
engagement letters with Price Paige &
Company to perform the annual audits
of the City of Ripon Financial
Statements and the Money Purchase
Thrift Pension Plan for the year ending
June 30, 2022 in the amount of
$57,386.00.
D. CLAIM
Mara Salomon Accept the claim filed by Mara
Salomon.
E. CNG STATION IMPROVEMENTS
ANGI Energy Systems, LLC Approve and authorize the purchase and commission of a dual hose CNG
dispenser unit for the CNG Fueling
Station from ANGI Energy in the
amount of $78,066 (funding source:
CNG Station Capital Reserve Fund).
F. PARTIAL ASSIGNMENT AND ASSUMPTION - PEREIRA DEVELOPMENT
AGREEMENT
Periera Residential Development Project Consent to the Assignment and Assumption Agreement allowing Ray
and Darlene Ruiz to purchase a portion
of the Pereira Residential Development
project and land from Gregory and
Donna Miller located at 22874 S. North
Ripon Road (APN: 261-210-09) and
authorize the Mayor to sign the
acknowledgement and acceptance by the
City.
G. WELL 19 PUMP STATION
Soracco, Inc. Approve Change Order No. 2 for
replacing an existing water valve,
adjusting for existing utility conflicts,
upgrading building doors and decreasing
the overall size of the wellsite for a
contract change in the amount of -
$11,850.79 (funding source: Water
Enterprise Capital Fund).
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H. GENERAL SERVICES AGREEMENT - AMENDMENT NO. 2
Terracon Consultants, Inc. Approve and authorize the Mayor to sign Amendment No. 2 to the General
Services Agreement with Terracon
Consultants, Inc. in the amount of
$20,000 to provide construction
materials testing and inspection services
for capital projects, including the
Stockton Avenue Rehabilitation Project
and the Well 19 Pump Station Project
(finding source: individual project
funding source).
ITEMS PULLED FROM CONSENT
1.2H : PROVOST & PRITCHARD CONSULTING GROUP
Engineering Services for Water Loss Audit Validation
Progress Payment – Invoice #91668 $9,455.00
Council Member de Graaf said this item involves his former employer, Provost & Pritchard, so he would leave the room for this item.
Motion to approve Item 1.2H Provost & Pritchard Consulting Group.
RESULT: ADOPTED AS AMENDED [4 TO 0]
MOVER: Leo Zuber, Council Member
SECONDER: Michael Restuccia, Vice Mayor
AYES: Uecker, Restuccia, Zuber, Barton
AWAY: de Graaf
**END OF CONSENT CALENDAR**
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2. RESOLUTIONS
A. RESOLUTION NO. 22-15
A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF RIPON
APPROVING THE IMPLEMENTATION
OF A MANDATORY ORGANIC WASTE
GREEN CONTAINER BE PROVIDED
TO ALL RESIDENTIAL CUSTOMERS
RECEIVING GARBAGE SERVICES
FROM THE CITY OF RIPON.
The State of California has mandated all
cities implement organic waste recycling
requirements through Senate Bill 1383,
which was signed into law by Governor
Brown in September 2016. After
evaluating various options to determine the
most cost-effective option to comply with
the State mandated requirements of Senate
Bill 1383, staff is recommending the City
Council adopt the attached resolution to
move forward with the first phase of
complying with these mandates utilizing
the City’s current green cans for both yard
waste and organic waste recycling.
Additionally, approve and authorize the
Mayor to sign the quote for 1,250 new
green cans from Toter in the amount of
$88,981.55 so green cans can be provided
to those residents who currently do not
have a green can (funding source: Garbage
Enterprise Capital Fund).
Director of Public Works Pease said this resolution will allow the City to move forward with providing and utilizing the green can service for each residential customer and authorizes the Mayor to sign for the purchase of 1,250 new green cans. Pease said there was a minor change to the resolution as presented and there is a redline version in front of Council. He said the resolution is the first step in implementing the State mandated Senate Bill 1383. The first phase is providing green cans to all residents at the current rate of $3.00 per month. Staff will continue to monitor the cost effectiveness of the program in its entirety including the cost of cans and services.
Council Member Zuber said he wanted to clarify that residents will receive information regarding what can and cannot go in the green cans. Pease said education will be provided to residents, as soon as they know what is actually allowed in the green can. He would like to get information out to residents as soon as possible. Pease said about 70% of the community already have a green can.
Vice Mayor Restuccia said he wanted to remind people this is an unfunded State mandate on the taxpayers. He said despite asking the State for the science and research showing the starting points, proposed end points and cost-benefit analysis to back this up, there have been no answers. He said the State is forcing higher costs on residents without providing documentation while they are doing it. He said maybe this Bill is fine, but usually when something is good, you share the information that backs it up, but there is no information forthcoming. Restuccia said he wants it to be clear that the City is not mandating this, it is the City Council Page 9 May 10, 2022
State and is a tax on everybody. He said businesses will have additional expenses to fund in addition to higher operating expenses. He believes this is poor leadership.
Motion to approve Resolution 22-15 approving the implementation of a mandatory organic waste green container be provided to all residential customers receiving garbage services from the City of Ripon and purchase of green cans.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Leo Zuber, Council Member
SECONDER: Gary Barton, Council Member
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton
3. DISCUSSION ITEMS
A. PENSION RATE STABILIZATION PROGRAM-115 RETIREMENT TRUST Discussion/Action Direct staff to draft a resolution to participate in the Section 115 Retirement
Trust and prepare an agreement with
PARS to administer the City’s pension rate
stabilization program, for the City Council
approval.
City Clerk Roos said staff and City Council have been talking about the idea of a Section 115 Trust for more than a year as the idea was first presented at the April 2021 strategic planning workshop and a working session was done in September by PARS to present the concept of Section 115 Trusts being used to prefund pension obligations.
Roos summarized a Section 115 Retirement Trust as a tax-exempt investment vehicle authorized by the IRS to prefund government expenses such as retirement plan benefits.
Assets held within the trust are designated as irrevocable, meaning that the assets must be used to fund the City’s defined benefit retirement plan obligations only. Monies placed within the trust may be invested according to rules governing the trust, which are different than the investment rules the City is required to follow for the City’s pooled investments so in theory, the funds placed within a trust can earn a higher rate of return than if the City invested the funds. She said funds placed within the trust can remain there until the City chooses to draw on them to pay any benefit obligation to CalPERS. The City Council may consider adopting polices of when the trust is to be used to pay a CalPERS obligation.
Roos said while an employee is working for the City, the City is required to pay CalPERS the “Normal Cost” to fund the future retirement payments of each employee. In addition the City is charged an “Unfunded Actuarial Liability (UAL)” which represents the difference between what was paid through the Normal Cost to the current calculated amount needed to fund a retired employee’s retirement compensation. CalPERS has made changes to their actuarial assumptions that have significantly increased pension liabilities to cities.
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Roos said the most recent PERS actuarial report dated June 30, 2020 shows the City’s current UAL is $5 million with future annual payments ranging from $350,000 in 2021- 22 to $580,000. Roos said even though the City’s unfunded pension liability is not as significant as other cities, because only the City’s sworn police officers receive a PERS defined benefit retirement plan, staff has evaluated establishing a Section 115 Retirement Trust to mitigate this liability.
Roos said staff has received information from three third-party firms to manage the Section 115 Retirement Trust for the City of Ripon and have reviewed the firms’ experience in serving local government clients in establishing these Trusts, their investment performance, fees, and references. Roos said based upon that criteria, staff is recommending the City of Ripon move forward with Public Agency Retirement Services (PARS) to administer the Section 115 Retirement Trust because of their list of clients, many of whom are local cities and have experienced the highest rate of return over the last 10 years. Roos said that while PARS has the highest administrative fees, comparatively, it is immaterial.
Roos defined the next steps as approving a resolution appointing a Plan Administrator and authorizing the Mayor to execute the contract with PARS at the June 2022 City Council Meeting, PARS will then assist staff in surveying the Council for their risk tolerance and the beginning investment amount followed by Council adopting an Investment Policy for the Section 115 Trust, including risk tolerance, investment amount, and how the Section 115 Trust is to be used to fund CalPERS obligations. Finally, establishing the Section 115 Trust and deposit funds, which we hope to have completed by November 2022 at the latest.
Roos said Council should note that the fiscal impacts to the City will vary based upon the amount invested in the Section 115 Retirement Trust and investment policy adopted by the City Council.
Motion to direct staff to draft a resolution to participate in the Section 115 Retirement Trust and prepare an agreement with PARS to administer the City’s pension rate stabilization program.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Leo Zuber, Council Member
SECONDER: Michael Restuccia, Vice Mayor
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton
B. 2022-2023 BUDGET DISCUSSION
Discussion/No Action Staff to discuss the fiscal year 2022-2023 budget.
City Administrator Werner said he will be discussing the 2022-2023 fiscal year budget.
He said the strategic planning meeting set the direction that has been incorporated as part of the budget. His discussion tonight will focus on General Fund revenue and the next discussion will focus on expenses, debt of the City and staffing.
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Werner presented a PowerPoint presentation showing the General Fund balance over the year, the slide shows the first half of the year where City is typically in a deficit and then catches up in the second half. He presented a graph that showed revenue is currently
7.5% higher and expenses are 1% higher than budgeted. Werner said inflation has caused prices to go up.
Werner estimates the General Fund surplus to be about $1 million before transfers. He said he believes it is important to show the fund amounts pre-transfer because it gives a clear picture of the health of the General Fund. He said the transfer amounts are usually about $500,000 including capital replacements and making the landscaping districts whole. He said the leftover money is considered surplus, and per Council policy, 33% of surplus goes to street and road reserves.
Werner said the surplus funds have allowed the City to build up contingency funds for unexpected economic downturns in order to continue providing services. He said he is projecting a decrease of about 2% for the 2022-2023 fiscal year as compared to the 2021- 2022 fiscal year in general fund revenue. Werner said global and national happenings have created uncertainty in the City's General Fund budget. He said development fees and property tax revenue have decreased while sales tax continues to fluctuate The City is receiving $3.9 million from the American Rescue Plan and Council discussed possible allocations at the strategic planning meeting.
Werner said sales tax revenue has fluctuated between $3-4 million over the last five years and he is projecting an 8% decrease for FY 2022-2023. Property tax revenue is projected to increase by 2%, which is the lowest annual increase since 2013-14; Werner believes this is due to a lack of development. Development related revenue has decreased from $850,000 to $250,000 since 2016-17. Motor vehicle in-lieu has averaged 5% increases over the last 5 years and he is projecting the same for the upcoming year.
Werner said recreation revenue has recovered and he is expecting a 3% increase this year.
He said there has been a substantial increase in commercial sales tax from $400,000 in 2011 to $1.2 million in 2021 and that 30-40% of this increase has come from the Economic Development Incentive program. He said Planning Director Zuidervaart has done a good job building relationships with landowners and developers.
Werner said commercial sales tax provides stability in sales tax revenue as compared to the sale of fuel, which has reduced from 60% of the City’s sales tax income in 2012 to just above 35% now. He said the sales tax revenue has afforded many benefits to the residents of Ripon including having the second highest ratio of police to people in the County and the most parks to people ratio in the County. One of the biggest concerns regarding sales tax revenue is the transition from fuel to electric vehicles and how sales tax is collected regarding internet sales.
Werner said California is one of the last states that uses the origin of the business to distribute the sales tax from internet sales. The Countywide pool receives revenue from online retailers if the company is completely out of state, but if one part of the company City Council Page 12 May 10, 2022
is in California then that city receives all of the sales tax for that online sale. Ripon’s share of the County pool has gone from $250,000 to $540,000 in the last ten years.
Werner said California is looking at a destination-based system where the city the goods are shipped to would receive the sales tax.
Werner said the budget will come back to Council in July for approval.
Council Member Barton asked how the idea of a significant decline will factor into the budget. Werner said when the contingency funds were developed, there were certain policies associated with those funds and as part of the budget staff will revisit them.
Overall, the City is fairly well positioned to mitigate a three-year downturn because of the contingency funds. He said this term is based this on what happened in 2008.
Council Member Zuber said besides the contingency funds, there are several high dollar projects the City is preparing to start and in the case of a severe recession, the projects can be halted.
Werner said during the recession in 2008, the City had to lay off 20% of their employees and has since only hired a few back and instead have invested money into making existing staff more efficient as opposed to hiring more staff. He said they invested a large amount into license plate readers to help the police department and water meter reader technology instead of sending staff to read meters every month.
Werner said tonight’s discussion was to review the highlights of the General Fund revenue and the next discussion will focus on the expenses. He said he plans to bring the budget for City Council approval in July.
REPORTS
Department Heads:
Planning Director Zuidervaart said there are two parcel maps on the agenda for the May 16, 2022 Planning Commission meeting.
Director of Public Works Pease said the water usage for April was 13% lower than 2013 and 6% lower than 2021.
Pease said the Governor issued an Executive Order in March tasking the State Water Board to reduce water usage by coming up with water conservation measures that need to be in place by May 25, 2022. The proposed regulations include cutting watering days to 2 days a week and prohibiting water features. The biggest item is the non-functional turf irrigation prohibition for commercial, industrial, and institutional facilities.
Council Member Zuber said Southern California will only be allowed to water one day a week beginning June 1, 2022.
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Council Member de Graaf said the State passed the Sustainable Groundwater Management Act in 2014 allowing 20 years to reach sustainability and the State should try to manage the current laws rather than making new ones.
City Attorney Terpstra said his son, Tommy Terpstra, passed his bar exam.
City Council:
Council Member Barton said Love Ripon was a neat event with a historic amount of volunteers, giving one an opportunity to appreciate the town we live in.
Barton said he attended an event in Visalia and the people in the southern end of the valley have a distinctly different and more profound challenge in regard to water. He said in this part of the valley we are in the sweet spot, however he would encourage the City to be more aggressive in connecting our water service to the irrigation district. He believes this is not a project that will be able to be deferred.
Barton said the invocation tonight mentioned the liberties we enjoy in this country and he sees people take these liberties for granted, often in the form of attacking the institutions that uphold those liberties, saying he wanted to share a quote from Ronald Reagan who said “Freedom is never more than one generation away from extinction. We did not pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same”. He said he would encourage us to share with others how precious our freedom is and when it is lost, it will be gone forever.
Council Member de Graaf thanked everyone who was here enjoying the meeting.
There being no further business, the meeting was adjourned at 6:56 PM. (Signed) Dean Uecker
Mayor
ATTEST:
(Signed) Lisa Roos
City Clerk