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Minutes 2013/03/18I CitV of Gilroy City Council Meeting Minutes March 18, 2013 I. OPENING A. Call to Order Mayor Gage called the meeting to order at 6:00 p.m. The pledge of allegiance was led by Council Member Aulman. The Invocation was given by Pastor Mark Turner of South Valley Community Church. City Clerk Shawna Freels announced that the agenda had been posted on March 13, 2013 at 2:30 p.m. Roll Call Present: Council Member Dion Bracco; Mayor Don Gage; Council Member Peter Leroe- Munoz; Council Member Cat Tucker; Mayor Pro Tempore Perry Woodward; Council Member Terri Aulman Absent/Excused: Council Member Peter Arellano M.D. B. Orders of the Day There were no agenda changes C. Introductions Chief Turner introduced new Police Department Officers Mike McMahon and Daryl Snyder. II. CEREMONIAL ITEMS A. Proclamations, Awards and Presentations Mayor Gage presented a Proclamation recognizing the Gilroy Brown's Scholastic Honorees Mayor Gage presented a Proclamation celebrating Shen Yun Performing Arts 2013 World Tour. III. PRESENTATIONS TO COUNCIL A. PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE AGENDA, BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY COUNCIL Giafranco Filice of the Gilroy Youth Commission invited the public and the City Council to the annual Senior Ball. IV. REPORTS OF COUNCIL MEMBER'S Council Member Aulman spoke on discussions at her recent VTA Advisory Committee meeting, explaining that staff had previously been asked to analyze a potential link between the OGAB programs and HCP and no link was found between the two. Mayor Pro Tempore Woodward explained that the Cal Train Board had approved a MOU with the High Speed Rail to electrify the Cal Train corridor from San Francisco to Tamian, and it was expected that High Speed Rail would approve the MOU at their next meeting. He explained that 27,000 railroad ties were in the process of being replaced in the South County areas, and went on to state that VTA was sending out a flyer for an City Council Meeting Minutes 3/18/2013 2 open house on March 23rd at the Gilroy train station to encourage the public to take the bus. Mayor Gage reported that the EDC was working with 5 major new companies interested in bringing their business to Gilroy and was holding their Board retreat on April 16th. He stated that the HCP was meeting on March 21st and went on to share a future meeting he would be holding with local auto dealers on the 2nd of April. He explained that the Welcome Center was continuing to increase their number of visitors, and then stated that the Downtown Business Association was looking for a full time staff person. He went on to explain that the HCP was working with the local partners on issues raised by the City of San Jose and anticipated the plan would be implemented in September. He explained that the city was considering a distribution center at McCarthy Park, spoke on the RDO allocation ordinance that had recently passed which sought to encourage building in the short term and concluded by sharing the recent city approval of a site plan for an office building at 4th and Monterey streets. Council Member Peter Arellano M.D joined the meeting at 6:22 p.m V. FUTURE COUNCIL INITIATED AGENDA ITEMS There were none. VI. CONSENT CALENDAR A. Minutes of February 25, 2013 Regular Meeting B. Minutes of March 4, 2013 Regular Meeting Motion on the Consent Calendar Motion: to approve Consent Calendar Items A and B Moved by Mayor Pro Tempore Perry Woodward, seconded by Council Member Cat Tucker. Vote: Motion carried 7 -0. Yes: Council Member Peter Arellano M.D.; Council Member Dion Bracco; Mayor Don Gage; Council Member Peter Leroe- Munoz; Council Member Cat Tucker; Mayor Pro Tempore Perry Woodward; Council Member Terri Aulman VII. BIDS AND PROPOSALS There were none. Vlll. PUBLIC HEARINGS A. Public Hearing to Establish a List of Properties Subject to the Weed Abatement Program and Adoption of a Resolution Ordering the Fire Chief to Abate the Nuisance Arising Out of Weeds Growing and Refuse Accumulating Upon Property in the City of Gilroy Pursuant to Section 12.51 of the Gilroy Code The staff report was presented by Fire Marshal Bretschneider. The public hearing was opened; there being no comments, the hearing was closed. Motion on Item VIII.A. Motion: to Adopt a Resolution 2013 -07 of the City Council of the City of Gilroy Ordering the Fire Chief to Abate the Nuisance Arising Out of Weeds Growing and Refuse Accumulating Upon Property in the City of Gilroy, Pursuant to Section 12.51 of the Gilroy City Code Moved by Mayor Pro Tempore Perry Woodward, seconded by Council Member Peter Leroe- Munoz. Vote: Motion carried 7 -0. City Council Meeting Minutes 3/18/2013 Yes: Council Member Peter Arellano M.D.; Council Member Dion Bracco; Mayor Don Gage; Council Member Peter Leroe- Munoz; Council Member Cat Tucker; Mayor Pro Tempore Perry Woodward; Council Member Terri Aulman IX. UNFINISHED BUSINESS A. Elm Tree Replacement Selection The staff report was presented by Operations Division Manager Stubchaer. Public comment was opened. Connie Rogers spoke on the planting of the Elm Trees by Henry Miller in the 1800's, suggesting that the replacement trees should be Elm Trees. Public comment was then closed. Motion on Item IX.A. Motion: to Approve the Chinese Pistache as the Replacement Trees on 5th Street, the Accolade Elm as the Replacement Tree on Miller and 6th Streets, and additional discussion to take place on the replacement trees for Eschenburg Drive. Moved by Mayor Pro Tempore Perry Woodward, seconded by Council Member Terri Aulman. Vote: Motion carried 7 -0. Yes: Council Member Peter Arellano M.D.; Council Member Dion Bracco; Mayor Don Gage; Council Member Peter Leroe- Munoz; Council Member Cat Tucker; Mayor Pro Tempore Perry Woodward; Council Member Terri Aulman X. INTRODUCTION OF NEW BUSINESS A. An Urgency Interim Ordinance of the City Council of the City of Gilroy Establishing a Temporary Moratorium on the Establishment, Expansion, or Relocation of Payday Lending and Check Cashing Businesses Within the City of Gilroy, and Declaring the Urgency Thereof, to Take Effect Immediately The staff report was presented by Community Development Director Abrams. Public comment was opened. Vanessa Lugo of Advance America spoke in support of the business of short term loans explaining that her business provided the services to those who needed a loan and could not get it elsewhere. Sophia Garcia, state director of government affairs of Advance America, explained that payday loans weren't right for everyone, but the vast majority of customers who used the service did so responsibly. She asked the Council to reconsider the urgency ordinance explaining that banning the loans would not limit the need for short term credit. Carlos Flores explained that he had many family members who were low income who had used the service and had put themselves in a bad place by over - extending themselves with the 400% interest loans, and fell into a cycle of borrowing from other pay day lenders to pay off others. He explained that the issue was a huge problem, asking the Council to look into a way to solve the problem with education on alternatives. Reymundo Armendariz spoke in support of the ordinance explaining that he worked with emigrant and other low income families who fell into the trap of continuously borrowing from the pay day lenders regularly asking that Council look into education for the problem of continuous high interest loans. City Council Meeting Minutes 3/18/2013 0 David Cox of St. Joseph Family center explained that 25% of the families the center assisted utilized the payday loan services, explaining that the cycle was difficult to get out of and an average person who utilized the service took out 10 loans. He then spoke on finding other, more judicious ways to assist families with their financial needs. Jan Berstein Chargin, Chair of the Gilroy Compassion Center, thanked the City for addressing the issue. She went on to share the continuing problems with the pay day loans, and suggested educating people by exploring the options. Erin O'Brien of Community Solutions explained that the pay day lending programs focused on the most vulnerable people, sharing the variety of other loans available throughout other lending institutions and asked the Council to support the ordinance. Connie Rogers explained that she had worked with people who saw no other way out but to borrow from pay day lenders, stating that there were other possibilities to support people in financial need. She spoke in support of the moratorium and asked that more research go into finding better options for short term loans. She spoke on the material provided by the law foundation and concluded by asking the Council to consider reducing the number of payday loan businesses and educating the public. There were no further public comments. Motion on Item X. A. Motion: to Read the Ordinance by Title Only and Waive Further Reading Moved by Mayor Pro Tempore Perry Woodward, seconded by Council Member Cat Tucker. Vote: Motion carried 7 -0. Yes: Council Member Peter Arellano M.D.; Council Member Dion Bracco; Mayor Don Gage; Council Member Peter Leroe- Munoz; Council Member Cat Tucker; Mayor Pro Tempore Perry Woodward; Council Member Terri Aulman Second Motion on Item X.A. Motion: to Adopt Urgency Interim Ordinance 2013 -06 of the City Council of the City of Gilroy Establishing a Temporary Moratorium on the Establishment, Expansion, or Relocation of Payday Lending and Check Cashing Businesses Within the City of Gilroy and Declaring the Urgency Thereof, to Take Effect Immediately Moved by Mayor Pro Tempore Perry Woodward, seconded by Council Member Cat Tucker. Vote: Motion carried 7 -0. Yes: Council Member Peter Arellano MD; Council Member Dion Bracco; Mayor Don Gage; Council Member Peter Leroe- Munoz; Council Member Cat Tucker; Mayor Pro Tempore Perry Woodward; Council Member Terri Aulman Third Motion on Item X.A. Motion: to Direct Staff to Prepare an Ordinance Amending the City Zoning Code to Limit or Prohibit the Operation of Payday Lending and Check Cashing Businesses with the City Moved by Mayor Pro Tempore Perry Woodward, seconded by Council Member Cat Tucker. Vote: Motion carried 7 -0. Yes: Council Member Peter Arellano M.D.; Council Member Dion Bracco; Mayor Don Gage; Council Member Peter Leroe- Munoz; Council Member Cat Tucker; Mayor Pro Tempore Perry Woodward; Council Member Terri Aulman B. League of California Cities Bylaw Amendments The staff report was presented by City Administrator Haglund. There were no public comments. City Council Meeting Minutes 3/18/2013 Motion on Item X.B. Motion: to Support of the League of California Cities Bylaw Amendment to Article VI, Section 2, and New Article VII, Section 16 Titled "Positions on Statewide Ballot Measures" Moved by Council Member Cat Tucker, seconded by Mayor Pro Tempore Perry Woodward. Vote: Motion carried 7 -0. Yes: Council Member Peter Arellano M.D.; Council Member Dion Bracco; Mayor Don Gage; Council Member Peter Leroe- Munoz; Council Member Cat Tucker; Mayor Pro Tempore Perry Woodward; Council Member Terri Aulman u XI. CITY ADMINISTRATOR'S REPORTS City Administrator Haglund spoke on the upcoming budget study session dates on April 24th and 25th, explaining that the full budget would be returned to the Council in May. XII. CITY ATTORNEY'S REPORTS Acting City Attorney Faber explained that the City Attorney was expected to return to work in the near future and was doing well. XIII. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Pursuant to Government Code Section 54956.9 (a) and Gilroy City Code Section 17A.11(c) (1): Name of Case: CW Design & Development, Inc. v. City of Gilroy, et al Court: Superior Court of California, County of Santa Clara Case No. 113CV241887 Date Case Filed: February 27, 2013 Acting City Attorney Faber advised the Council that they were being asked to adjourn to closed session on the item as discussions in open session could prejudice the position of the City in the case. Motion on Closed Session Motion: to Assert the Attorney Client Privilege on Item XIII.A and Adjourn to Closed Session Moved by Mayor Pro Tempore Perry Woodward, seconded by Council Member Cat Tucker. Vote: Motion carried 7 -0. Yes: Council Member Peter Arellano M.D.; Council Member Dion Bracco; Mayor Don Gage; Council Member Peter Leroe- Munoz; Council Member Cat Tucker; Mayor Pro Tempore Perry Woodward; Council Member Terri Aulman The Council adjourned to closed session at 7:25 City Council Meeting Minutes 3/18/2013