HomeMy WebLinkAbout09/06/17 CC AGENDA HIGHLIGHTSAGENDA HIGHLIGHTS
� SEPTEMBER 6, 2017 COUNCIL MEETING
I�',' -;a REGULAR MEETING - 3:30 p.m.
NOTE: A Public Benefit Corporation Meeting will be called to order at 3:30 p.m. A
separate meeting will be called to order after the Public Benefit Corporation Meeting,
followed by public statements that will encourage comments pertaining to closed
session matters only. The Council will then recess into Closed Session. Upon conclusion
of the Closed Session, any closed session action will be announced prior to
adjournment of the meeting. At 5:15 p.m., the regular meeting will be called to order to
address the remainder of the agenda items.
REGULAR MEETING - 3:30 P.M. (FOLLOWING THE PUBLIC BENEFIT CORPORATION MEETING)
CLOSED SESSION
There will be a conference with legal counsel regarding two matters of potential
litigation and one matter of existing litigation.
REGULAR MEETING - 5:15 p.m.
WORKSHOPS
Staff from the Public Works Department will provide a presentation on the
implementation plan for street maintenance funding made available by Senate Bill 1.
CONSENT CALENDAR
Resolutions
Item 8f. Air District Payment. As part of the environmental mitigation measures for the
Centennial Corridor Project, the City, working with the State Department of
Transportation, has come to an agreement with the San Joaquin Valley Unified Air
District on a voluntary emissions reduction agreement. The agreement and associated
funding will allow the air district to mitigate emissions in the general area of the project
by funding many of its ongoing grant programs. These programs include, but are not
limited to retrofitting of existing vehicles to reduce emissions and providing grants to
replace wood burning fireplaces. Staff is requesting the Council approve a resolution
authorizing the $1.5 million payment to the air district to fund these programs as part of
the environmental mitigation for the Centennial Corridor project.
CONSENT CALENDAR PUBLIC HEARINGS
Items 9a. Proposed Water Rate Increase. In July 2017, the State Water Resources
Control Board adopted new standards that set a maximum contaminant level (MCL)
for the synthetic organic chemical 1,23- Trichloropropane (TCP) allowed within
domestic water systems. TCP is a chemical compound that was used in pesticides in the
1970s and 1980s and has been found in groundwater in California. This decision requires
the City to take certain actions over the next several months to meet these new
regulations within the City's domestic water system. The City must comply with these
regulations beginning in early 2018. The estimated cost to install the required equipment
is $55 million. As a result, the City will need to finance a portion of the project. This
borrowing will require a substantial user rate increase to fund the TCP treatment costs,
additional operating costs and cover the new debt service payments. The City
contracted with a special water rate consultant to conduct a rate study and determine
the necessary rate increases to comply with the new State mandates. As
recommended by the consultant and staff, the City Council previously approved the
distribution of notices to all affected customers within the City's domestic water service
area notifying them of this hearing to consider increasing water rates. If approved, the
proposed rate increases translate into the typical monthly water bill going from its
current $36.20 /month to $41.98 /month (October 2017), then $47.39 /month (July 1,
2018), and finally $50.89 /month (July 1, 2019). Individual customer water rates will vary
based on actual usage. The rate increases can never exceed the City Council
approved rates, but they can be lowered. Ongoing litigation against the parties
responsible for the TCP contamination will attempt to recover these costs, but the
outcome of the litigation is unknown at this time. If the City receives proceeds from the
current litigation, the future year rate increases may be reduced.
Items 9b. -9g. Resolutions of Necessity for 24th Street and Centennial Corridor proiects.
The City is down to partial acquisitions and temporary construction easements on the
24th Street and Centennial Corridor projects. Resolutions of Necessity (RON), the first step
in condemnation, are sometimes necessary at this stage to get owners to act on what
in the majority of instances are minor impact acquisitions. Staff recommends adoption
of six RONs; however, throughout the process, staff will continue to work with the
property owners to attempt to negotiate and finalize an agreement reflecting fair and
equitable compensation for their properties.
NEW BUSINESS
Items 13a. TCP Mandate Bond Issue. As a result of the state mandate for 1,23-
Trichloropropane (TCP) outlined earlier in this memo, the City must comply with these
regulations beginning in early 2018. The estimated cost to install the required equipment
to meet this new state mandate is $55 million. As a result, the City will need to finance a
portion of the project. This item requests the Council's approval to issue up to $25
million in bonds to fund a portion of the improvements that are necessary to comply
with the state mandate. The remaining funds to complete the project will come from
the water enterprise fund balance. As discussed previously, a consultant determined
that domestic water rates need to rise by approximately 41 percent by July 2019 to
comply with the new State requirements, which include the repayment of the debt
associated with the issuance of the bonds. The bonds will be issued at a fixed interest
rate with a term of 25 years. The annual debt services cost (principal and interest) for
this first bond issue is currently estimated at $1.4 million per year.
Agenda Highlights - September 6, 2017 Council Meeting
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Approved: Alan Tandy, City Manager U-I or
Agenda Highlights - September 6, 2017 Council Meeting
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