ITEM 53. Council to Consider the Following 1 Hold a Public Hearing and 2 Introduce Ordinance to Amend Section a of the Lathrop Municipal Code

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1 ITEM 53 CITY MANAGER S REPORT UNE CITY COUNCIL MEETING ITEM PUBLIC HEARING PUBLISHED NOTICE TO CONSIDER AMENDING ORDINANCE LMC SECTION a RECOMMENDATION Council to Consider the Following 1 Hold a Public Hearing and 2 Introduce Ordinance to Amend Section a of the Lathrop Municipal Code SUMMARY This proposed ordinance corrects an inconsistency between the City s Municipal Code section a which escalates the Agricultura Mitigation fee by the Engineer s Report Construction Cost Index ENR CCI and several agreements which state that the fee should be escalated using the Consumer Price Index CPI This ordinance was introduced at Council s regularly scheduled meeting of May but staff subsequently discovered that the Public Hearing Notice had not been published Therefore staff is resubmitting the introduction of the ordinance after ensuring the Notice of Public Hearing was proper y published BACKGROUND Ordinance No was adopted on May to establish the Agricultural Mitigation Fee pursuant to a 2003 settlement agreement between Sierra Club and the Cities of Lathrop Tracy and Escalon Sierra Club AgreemenY The Sierra Club Agreement states that the Agricultural Mitigation fee it is to be escalated annually by the Consumer Price Index CPI for all Urban Consumers San Francisco Oakiand San Jose area However the City s Ordinance No OS 240 did not adopt the CPI escalator Instead the Ordinance uses the Engineers Report Construction Cost Index ENR CCI as the escalator for the Agricultural Mitigation Fee The calculation methodology in the City s Ordinance should be amended to reference the CPI as the escalator instead of ENR The proposed amendment is as follows ANNUAL FEE UPDATES REVIEW a The Agricultural Mitigation Fee schedule established by resolution of the City Council shall annually be automatically adjusted by an amount determined by the increa se in the y ozo Consumer Price Index for all Urban Consumers San Francisco Oakland San Jose area CPI for the previous year as published by

2 CITY MANAGER S REPORT JUNE CITY COUNCIL MEETING the US Deoartment of Labor Bureau of Labor Statistics No other provision of the Municipal Code is amended by this proposed Ordinance FISCAL IMPACT None COUNCIL GOALS ADVANCED BY THIS AGENDA ITEM This proposed Ordinance is intended to further Council s goal of promoting Economic Growth by clarifying the Agricultural Mitigation Fee to be paid by developers ATTACHMENT A Ordinance Amending Section a of the City of Lathrop Municipal Code Titled Annual Fee Updates Review

3 CITY MANAGER S REPORT 7UNE CITY COUNCIL MEETING APPROVALS yclt3 c S zce w Vanessa Portillo Accounting Manager a Cari Jame Finance Dir ctor r Date 5lCS Date Salvador avarre e Date City Attorney G 6 rr Step JSalvatore Date CiEy Manager i

4 ORDINANCE NO 15 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LATHROP AMENDING SECTION a OF THE LATHROP MUNICIPAL CODE TITLED ANNUAL FEE UPDATES REVIEW WHEREAS on May the City Council of the City of Lathrop adopted Ordinance No establishing an Agricultural Mitigation Fee pursuant to an agreement between Sierra Club and the Cities of Lathrop Tracy and Escalon in 2003 Sierra AgreemenY and WHEREAS Ordinance No adopted the EngineersReport Construction Cost Index ENR CCI as the method of escalating the Agricultural Mitigation fee but the Sierra Agreement and other settlement agreements designate the escalation of the fee should be by the Consumer Price Index for all Urban Consumers San Francisco Oakland San Jose area CPI and WHEREAS in order for the City s Municipal Code to be consistent with the Sierra Agreement and the other individual settlement agreements the City must amend its Municipal Code to designate the CPI as the method of calculating the Agricultural Mitigation fee WHEREAS this ordinance was introduced at Council s regularly scheduled meeting of May but staff subsequently discovered that the Public Hearing Notice had not been published Therefore staff is resubmitting the introduction of the ordinance after ensuring the Notice of Public Hearing was properly published NOW THEREFORE the City Council of the City of Lathrop does hereby ordain that Lathrop Municipal Code section a is hereby amended as follows a ANNUAL FEE UPDATES REVIEW a The Agricultural Mitigation Fee schedule established by resolution of the City Councii shall annually be automatically adjusted by amount determined by the increase in the Consumer Price Index for all Urban Consumers San Francisco Oakland San Jose area CPI for the previous year as published by the US Department of Labor and Bureau of Labor Statistics

5 THIS ORDINANCE was regularly introduced at a meeting of the City Council of the City of Lathrop on June and was PASSED AND ADOPTED at a regular meeting of the City Council of the City of Lathrop on this 15s day of June 2015 by the foliowing vote AYES NOES ABSTAIN ABSENT Sonny Dhaliwal Mayor ATTEST APPROVED AS TO FORM Teresa Vargas City Clerk Salvador Navarrete City Attorney

6 1 pf rcs i CINAN TC7 AM Nd ATHR p MUNI IP AL CC be TIC N aaE IN AZI JLYU AL NIITI ATIC FEE n S 1 1 j C 1 t v R l 4 t L SS t Z i 1 Y4 t A Y i l ta y tt 1Ijl

7 a t G pf Ordinance No was adopted on May 1 7 Z005 t establish the Agricultural Mitigation Fee pursuant to a 003 settlement agreement between Sierra Club and the Cities of Lathrop Tracy and Escalon Sierra Club Agreement The Sierra Club Agreement states that the Agricultural Mitigation Fee shall be escalated annually by the Consumer Price Index CPI for all Urban Consumers San Francisco Oakland San ose area However the City s Ordinance No did not adopt the CPI escalator Instead the Ordinance cites the use of the Engineers Report Construction Cost Index ENR CCI as the Agricultural Mitigation Fee escalator

8 pf 1A r s G The Agricultural Mitigation Fee has been revised annually using the CPI escalator as required by individual settlement agreements Throughout the years the CPI escalator has been the means for revision of the fee Furthermore in reviewing the Staff Report written in 2005 the Staff Report cites the CPI as the escalator of the fee a q YFa

9 cri ridr G1 pf 9 Rq The Finance Department is requesting an amendment to the municipal code that would correct an inconsistency with the City s Municipal Code Section a which currently escalates the Agricultural Mitigation fee by the Engineer s Report Construction Cost Index ENR

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