SPECIAL MEETING MINUTES

June 19, 2009

Mayor Winn called the Special City Council meeting to order at 4:00 p.m.

ROLL CALL: Council Members Uecker, Gay, Vice Mayor Nutt, Mayor Winn

Absent: Council Member Krebbs

Others Present: City Administrator Leon Compton, City Attorney Tom Terpstra, City Engineer Kevin Werner, Planning Director Ken Zuidervaart, Recreation Director Kye Stevens, Police Chief Richard Bull, City Clerk Lynette Van Laar, Deputy City Clerk Jeanne D. Hall, Information Systems Technician Dan Brannon.

MOTION: MOVED, SECONDED (NUTT, GAY) AND CARRIED BY A VOTE OF 4-0 (KREBBS ABSENT) TO APPROVE THE RECONSIDERATION OF RESOLUTION NO. 09-43.

Council Member Krebbs joined the meeting.

MOTION: MOVED, SECONDED (NUTT, GAY) AND CARRIED BY A VOTE OF 5-0 TO APPROVE RESOLUTION NO. 09-54 RESCINDING RESOLUTION NO. 09-43.

Mayor Winn said that, at the City Council meeting of June 16, he meant to pull Resolution No. 09-43 from the Consent Calendar for discussion because of the importance of the position at that level. Winn added that he talked to Ms. Eggman. She said that it was reported that she was anti-farm, but she said she comes from Turlock and is pro-agricultural. He said he brought this item back for discussion because it is an important decision. He said that the question is — do you feel comfortable with her representing the valley on the air resources board based upon her credentials or not.

Winn said that the application form showed she has strong credentials. At this time, he asked for comments or concerns.

Vice Mayor Nutt said he read the article in the Manteca Bulletin, and he said he knows you can’t believe everything you read in the newspapers, but he saw nothing negative in the application. Nutt said he would like more information beyond the application.

Council Member Gay said he needs to know more about her. He said he does not know enough about her to approve the nomination – especially with the air resources board. He said that his concern is that she has an agenda he does not agree with.

Winn noted that her application states that Ms. Eggman “strongly believes that social, economic and environmental justice is possible through the political process.” He said that these are things he has seen, that far too often, have serious ramifications. He said he is concerned about what is behind this. He is concerned that her passions may be the antithesis of his beliefs.

Nutt said that he has attended some of the meetings, and saw that she has strong beliefs and will not move one way or another.

Council Member Krebbs said that he does not know her so he cannot comment on her.

Gay said that the only time he has seen environmental justice through the political process is to the detriment of business. No one stands to benefit in this state except the environmentalists – everyone else loses.

Nutt said that nothing in the application or newspapers raised a red flag, but listening to the other council members has raised concerns. He said that is why he comes to these meetings with an open mind.

Gay stated that in the last year, the world has turned upside down. The only way we are going to change things on a national level is to be careful on the local level. He stated that what has happened is that people with different agendas have taken over the state and ruined it for people to have viable businesses here. He said that people are leaving in droves. He has been in conversations with people in Sacramento, but to speak to someone on the Planning Staff, they had to get a meeting with Mayor Kevin Johnson, which they did. Talking to one of the principal planners, he learned that they are laying off one-third of their staff and they are trying to figure out how they are going to reorganize. On the other hand, Johnson is being investigated by a special prosecutor that can never get fired; however, now the administration is claiming that the prosecutor is crazy, so they are firing him because he is daring to expose one of the Governor’s good friends. Things are really messed up. We need to be careful of whom we let in.

Krebbs said that Eggman’s statement that Stockton should be the “leader in the valley for green technology” means absolutely nothing. When she makes that kind of statement, it is simply politically correct.

Gay said that green technology can be misused.

MOTION: MOVED, SECONDED (NUTT, GAY) AND CARRIED BY A VOTE OF 5-0 TO DENY THE APPOINTMENT OF SUSAN TALAMANTES EGGMAN FROM THE CITY OF STOCKTON TO THE GOVERNING BOARD OF THE SAN JOAQUIN VALLEY AIR POLLUTION CONTROL DISTRICT.

Mayor Winn said that this item was brought up for discussion in a desire to protect the City’s assets.

City Administrator Compton said that the Council needs to look back 20 years at how the City made investments. The City invested money in LAIF (Local Agency Investment Fund) because it was good investment program for local governments and it was safe. It began with a $1 million cap, but the cap was raised over the years, and now there is no cap. Compton said he has served on the RMA board, and there are 57 cities who pool their money for workers compensation and liability protection. He said he recommended that cities invest in a more profitable program similar to what the RMA has, and after reviewing several companies, Chandler & Assoc. [Chandler] was selected to handle the cities’ investments. Compton said that LAIF is good for short-term investments, because it is liquid and safe, but it gives low yields. Chandler is for long-term investments, is a much better yield, but like the market, it can go up or down. He said that they give careful thought as to which program to put the City’s money in.

Compton presents charts to show the growth of the City’s investments.

Compton said he had a conversation with members of the SSJID board, and that they are moving all of their money out of LAIF because they are concerned that the state will take any part of the funds. He said that no one trusts the state and they are concerned that the state may rob LAIF. He said that the City should move more money to Chandler. The down side is that we could lose some money. We have to consider which is the greater risk – Chandler or the state. Compton recommended that the City move $1.5 million from LAIF to Chandler & Assoc.

Council Member Krebbs asked what Chandler is invested in.

Compton said that Chandler has a list of what is allowed. It is a very tight policy, very strict, and they must qualify everything. The goal is to protect the principal, and then make money.

Krebbs said that the state is a concern.

Vice Mayor Nutt said that once the state starts taking money, they will move fast.

Compton said that we will be leaving a little over $2 million in LAIF for liquidity. The money that we pull out will not be put back into LAIF until the general fund is low.

Mayor Winn said that the market is increasing, and that is good for long-term investing.

There being no further business, the meeting adjourned at 4:45 p.m.