CITY OF LOS BANOS CITY COUNCIL / REDEVELOPMENT AGENCY MEETING MINUTES JUNE 3, 2009 ACTION MINUTES – These minutes are prepared to depict action taken for agenda items presented to the City Council. For greater detail of this meeting refer to the electronic media (CD and/or audio) kept as a permanent record.

CLOSED SESSION – CONFERENCE WITH REAL PROPERTY NEGOTIATORS, PURSUANT TO GOVERNMENT CODE SECTION 54956.8; PROPERTY: 903 PACHECO BOULEVARD, LOS BANOS, CALIFORNIA, APN 026-110-001, APPROXIMATELY 12.4 ACRES; NEGOTIATORS: CITY MANAGER, CITY ATTORNEY, PUBLIC WORKS DIRECTOR/CITY ENGINEER; NEGOTIATING PARTIES: CITY OF LOS BANOS & LOS BANOS UNIFIED SCHOOL DISTRICT; UNDER NEGOTIATION: PURCHASE PRICE AND TERMS OF SALE. No action taken, direction to staff only. CALL TO ORDER: Mayor Jones called the City Council / Redevelopment Agency Meeting to order at the hour of 7:00 p.m. PLEDGE OF ALLEGIANCE. Police Chief Fitchie led the pledge of allegiance. ROLL CALL – MEMBERS OF THE CITY COUNCIL / REDEVELOPMENT AGENCY PRESENT: Tom Faria, Joe Sousa, Elizabeth Stone, Mike Villalta, and Tommy Jones. STAFF MEMBERS PRESENT: City Attorney Vaughn, City Clerk/Human Resources Director Mallonee, City Manager Rath, City Treasurer/Chief Financial Officer Wall, Fire Chief Guintini, Police Chief Fitchie, Public Works Director/City Engineer Fachin, Planning Director Fitzgerald, Redevelopment Agency Director Post, and Information Technology Director Spalding. CONSIDERATION OF APPROVAL OF AGENDA: Motion by Stone, seconded by Sousa to approve the agenda as submitted. The motion carried by the affirmative action of all City Council / Redevelopment Agency Members present. PRESENTATIONS – FLAG DAY PROCLAMATION. Mayor Jones presented the Flag Day proclamation to Norm Donovan, who accepted the proclamation on behalf of the Los Banos Elks Lodge and reminded everyone about the annual Flag Day ceremony on June 10, 2009 at 6:00 p.m. in the Council Chambers. PRESENTATION – UNIFICATION OF CULTURAL ARTS (UC ARTS) PRESENTATION BY NIKKO S. THOMPSON, EXECUTIVE DIRECTOR. Nikko Thompson, Unification of Cultural Arts (UC ARTS), spoke regarding the UC ARTS program and gave a video presentation.

Council Member Villalta spoke of being happy to see an alternative to sports and development of the whole mind of the child. Council Member Faria expressed his support for the project, spoke of being the Music Director for the local school district, and how he would like to work with her on this program. PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE COUNCIL ON ANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THE JURISDICTION OF THE CITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BE TAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5) MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THE COUNCIL CHAMBER INFORMATIONAL TABLE. LES POLICY, Los Banos, spoke on behalf of the Friends of Los Banos Library Group and invited all to their ribbon cutting on June 4, 2009 at 6:30 p.m. and their first meeting on June 4, 2009 at 7:00 p.m.; GENE FORTE, Los Banos, spoke regarding a letter of apology that he received from Mayor Jones, requested that he get an additional 5 minutes to speak at the Public Forum, spoke to a flyer being distributed, being part of a black family from New York, comments made about him being part of the Klu Klux Klan, asked the Police Chief to put the Mayor under citizen’s arrest at the end of the meeting, spoke of the Mayor committing perjury during his deposition, calling the Mayor a lying nigger, and how he was going to take them all down; AMBER DAVIS, Los Banos, understands the anger that Mr. Forte feels, graduated from University of Tennessee magna cum laude and spoke of ignorance; MARION SANTOS, Los Banos, spoke of corrupt officials that needs to stop, having to pay additional permit fees when building Toscano RV, contamination on his property, the whole town being contaminated, went to the Los Banos Police Department regarding a $500,000 embezzlement within his company and the Police Department never took action, City not supporting his business, supporting Gene Forte for his actions because he is the only one who is willing to help him; RON DYBAS, Los Banos, thanked the City for letting Officer Jones work on the Sober Grad event along with the help of PAL, the Rotary Club and Gene Lieb for stepping up for the Los Banos High School Seniors; CHUCK MARTIN, Los Banos Kiwanis Club, spoke regarding the Father’s Day Cookout being held at Pacheco Park on Sunday, June 21, 2009 from 11:00 a.m. to 1:00 p.m. and encouraged all to attend; ANN McCAULEY, Los Banos, spoke of hearing some distressing news from her neighbors that they may have to walk away from their home because they can no longer afford them, was directed to a foreclosure prevention workshop in Modesto after contacting Congressman Cardoza’s office, and the help that the Neighborhood Stabilization Program may provide; CAROLYN DIXON, Representative of Allied Waste, spoke regarding confusion with the recycling program and specifically regarding plastic bags, the City’s website is updated with information on recyclable items, the need to get the residuals down from 30% to 10%, and Allied Waste is here for the City and the community; ARLENE CARDOZA, Los Banos, check with Assembly Member Galgiani’s office on helping people keep their homes, spoke regarding the budget sessions she has attended so far, concerned about requesting a reclassification of a utility technician to a budget manager, the decision not to invest in the Los Banos Chamber of Commerce, the importance of the Chamber of Commerce as it provides valuable information on businesses, schools, service clubs,

assistance with ideas and workshops, their sponsorship of several community events, and recommended that the City restructure the budget to include the Chamber of Commerce; ANNA SANCHEZ, Los Banos, spoke of her attendance at a meeting last week in Fresno and how others speak of the City of Los Banos City Council as corrupt and unstable which shows desperation to justify actions, suggested the City Council show more dignity and class as they are representing the City of Los Banos, and suggested that they work on the objectiveness of the City and not goals; BOB REISTER, Los Banos, spoke regarding trash cans being kept on the sidewalk which forces people to walk in the gutters and on lawns and would like to see the trash cans put at the curb; CARYN COX, Los Banos, read from a prepared statement regarding June 3, 2009 being a day to remember for Los Banos, spoke of citizens having to pay higher fees because of this Council’s actions, the Regional Transportation Impact Fee (RTIF), public safety layoffs, community center, has sent a letter to the governor regarding the situation in Los Banos, and will be starting the recall against Mayor Jones, Mayor Pro Tem Sousa, and Council Member Stone; GENEVA BRETT, Los Banos, spoke of business being the lifeblood of the community, the Country Duck is will hold a ribbon cutting June 4, 2009 at 11:00 a.m., ribbon cutting for the Friends of the Library on June 4, 2009 at 6:30 p.m., hard economic times being the most valuable time to market, the need for spending locally and support local businesses, asked the City Council to reconsider their decision of not supporting the Chamber of Commerce, and the Redevelopment Agency and the need to redevelop the City now more than ever; LUISA BOUNDS, Los Banos, spoke of disrespect and what is being said at council meetings regarding elected officials, the need for a feed in the lobby to hear what people are really saying when they think they are not being heard, the need for people need to check their facts instead of accusing honest decent people of untrue actions; BERNICE SIMEONE, Los Banos, spoke of the Mayor misleading her when speaking over the phone this morning regarding hiring back 3 police officers, her kids knowing right from wrong, took his misleading as racism towards her Hispanic race, the City Council acting immature, suggested the City pull a permit and build the community center in their own backyard, how she is not stupid and ignorant and does not want her parents spoken about that way, and stated that her comments do not include Council Member Faria; CARMELLA SMITH, Los Banos, cannot believe the things out of peoples mouth tonight and is against the recall; SHIRLEY ROSE, Los Banos, spoke to Mayor Pro Tem Sousa’s comments regarding ignorance and stupidity in the newspaper, disrespectfulness and earning respect, asked Mayor Jones when he is going to stop playing the race card, spoke of former Mayor Robert Glenn Lynn being the best mayor ever, and seeing Mayor Jones at Kmart and how he ignored her; DENNIS FAUCHIER, Los Banos, spoke of listening to talks of money, scandals, and arrests made, how he is keeping an open mind, it pains him to hear ignorance and stupidity comments, the embarrassment of it, what he is about to do is with sadness in his heart that this has to take place, and read a recall statement; KENT SANDHAGEN, Los Banos, spoke regarding the graffiti abatement program and the need for citizens to notify Norm Donovan at the Police Annex so that they can address the graffiti issue as soon as it happens. No one else came forward to speak and the public forum was closed. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Motion by Stone, seconded by Faria to approve the consent agenda as follows: Check Register for

#115875 - #116099 in the Amount of $1,048,139.58; Minutes for the May 6, 2009 City Council / Redevelopment Agency Meeting; Minutes for the May 20, 2009 City Council / Redevelopment Agency Meeting; City Council Resolution No. 5140 – Approving the Annual Local Transportation Fund (LTF) Claim to be Filed with the Merced County Association of Governments (MCAG) for Fiscal Year 2009-2010; City Council Resolution No. 5141 – Authorizing the City Manager to File Regional Surface Transportation Program (RSTP) Exchange Funds Claim for Fiscal Year 2008-2009; City Council Resolution No. 5142 – Amending the Fiscal Year 2008-2009 Budget by Increasing the Appropriation Amount for the Airport Fund for Revenues in the Amount of $35,000 and Expenditures in the Amount of $35,000 for Aviation Fuel.. The motion carried by the affirmative action of all City Council / Redevelopment Agency Members present. PUBLIC HEARING – TO RECEIVE PUBLIC COMMENT ON THE OPPORTUNITIES FOR NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDING TO SET UP A DOWN-PAYMENT ASSISTANCE PROGRAM FOR LOS BANOS RESIDENTS. Redevelopment Agency Director Post presented the staff report and spoke of opening the public hearing, continuing it to an adjourned meeting on Monday, June 8, 2009, and continuing the adoption of the resolution to Monday, June 8, 2009. The public hearing was opened. GENEVA BRETT, Los Banos, spoke of being a realtor, the challenge of putting people in homes for the value in the guidelines, and offered her support to help where she can; CARYN COX, Los Banos, suggested that if the City of Los Banos purchased homes with this program that Los Banos realtors that pay for business licenses holders be offered to help purchase those homes and not the out of town realtors, and has complained about this before but nothing has been done; RON DYBAS, Los Banos, this could be galvanizing for the community and encouraged the Council to take this serious, and a good start is in support. No one else came forward to speak. There was Council Member and staff discussion regarding the administration costs of 24%, the process of dispersing the funds, the work MCAG does on this program, amount of funds that will be land banked, using local contractors, a competitive bidding process, Habitat for Humanity having their own guidelines, the need to follow State and City guidelines, a local contractors list that will be developed, putting this on the Chamber’s website, the State making it so difficult, the importance of adhering to the rules as it is federal money, several more homes going through the foreclosure process, and the City has a 90 day period to distribute the money or it will go back to the State of California. Motion by Faria, seconded by Stone to continue the Public Hearing to the adjourned City Council/Redevelopment Agency meeting on June 8, 2009 at 4:30 p.m. The motion carried by the affirmative action of all City Council/Redevelopment Agency members present.

City Manager Rath recognized Congressman Cardoza for stepping in and helping Los Banos receive these NSP funds and thanked Redevelopment Agency Director Post for her diligence with this program. PUBLIC HEARING – TO RECEIVE PUBLIC COMMENT ON THE CLOSEOUT OF A 2008-09 PLANNING / TECHNICAL ASSISTANCE COMMUNITY DEVELOPMENT GRANT FOR A DOWNTOWN COMMERCIAL FEASIBILITY STUDY. Redevelopment Agency Director Post presented the staff report and introduced Roger Klemm, Synthesis Design Group, who spoke of design concepts and costs for two downtown buildings and the Planning/Technical Assistance Community Development grant. There was Council Member, staff, and consultant discussion regarding structural changes, putting it out for an RFP for a building remodel, amount invested in the buildings, total square feet, possibly waiving fees, RTIF fees, other historic buildings in town, funding breakdown, looking into reimbursement of fees, possibility of a historic district in downtown, possibility of selling the building on I Street, the creamery building presentation as a very creative way to make use of the space, the positive potential and how this contributes to the development of rail corridor The public hearing was opened. DICK GERBI, Los Banos, spoke of these being great projects but thinks the City is being a little optimistic, dealing with historic buildings becomes very tricky, it was his understanding that the building on I Street had previously been structurally evaluated and condemned, suggested that the building could be torn down, possibly prematurely getting our hopes up, and nearby businesses not being of the same quality. No one else came forward to speak and the public hearing was closed. There was Council Member and staff discussion regarding structural cost. Redevelopment Agency Director Post clarified that the building was never structurally evaluated and never condemned. Motion by Sousa, seconded by Faria to accept the report. The motion carried by the affirmative action of all City Council/Redevelopment Agency members present. CONSIDERATION OF RECOMMENDATION OF APPOINTMENT TO THE MERCED COUNTY MILLIKEN MUSEUM ADVISORY COMMITTEE – TWO (2) VACANCIES. Mayor Jones stated that there was one letter of interest received by the City Clerk from Tim McNally and recommended Mr. McNally’s appointment to the Merced County Milliken Museum Advisory Committee. Motion by Stone, seconded by Faria to appoint Tim McNally to the Merced County Milliken Museum Advisory Committee. The motion carried by the affirmative action of all City Council/Redevelopment Agency Members present. Motion by Sousa, seconded by Faria to authorize staff to re-advertise for one vacancy on the Merced County Milliken Museum Advisory Committee. The motion carried by the

affirmative action of all City Council/Redevelopment Agency Members present. The motion carried by the affirmative action of all City Council/Redevelopment Agency Members present. REPORT ON THE CITY OF LOS BANOS WEB SITE UPDATE. Technology Director Spalding presented the staff report.

Information

Council Member Faria spoke of a particular issue with contacting him through the City’s website and asked citizens to use [email protected] to contact him. Information Technology Director Spalding requested that he and Council Member Faria schedule at time to get together to address the issue he is having. No action to be taken, informational item only. REDEVELOPMENT AGENCY UPDATE. Redevelopment Agency Director Post spoke regarding an article about City of Los Banos posted on businessweek.com regarding small local businesses trying to survive difficult economic times and Microenterprise loans to provide assistance to business owners who hire or employ a low income person onto staff. ADVISEMENT OF PUBLIC NOTICES (No Report). CITY MANAGER / EXECUTIVE DIRECTOR REPORT. No report. CITY COUNCIL / REDEVELOPMENT AGENCY MEMBER REPORTS. JOE SOUSA: Reminded all about the Flag Day ceremony on June 10, 2009 at 6:00 p.m. in the Council Chambers and the Elks fashion show on June 18, 2009, wanted to make comments about what has been said tonight, stands behind what he says, serves because he truly cares about the City, hopes the folks who come to the podium can stand behind their comments as well, and asked the community to let those who were voted into the Council ELIZABETH STONE: Spoke of attending a beautiful Memorial Day ceremony at the cemetery and thanked the veterans for the work they do for this community, reminded all about the Friends of the Library meeting on June 4, 2009 at 7:00 p.m., Elks fashion show on June 18, 2009, Flag Day ceremony on June 10, 2009 at 6:00 p.m., spoke regarding comments that were directed towards her tonight, personal attacks don’t contribute to what the council is trying to accomplish, humbly asked the small group of people who repeatedly attend these meetings to have respect for the business that is being conducted in the Chambers, and requested that they take the personal attacks to an arena that is more appropriate because it isn’t fair to Los Banos and doesn’t give the Council Members the opportunity to do the job that they were elected to do. MIKE VILLALTA: Thanked all those that attended the Memorial Day celebration, the National Cemetery service was very moving and well thought out, the local cemetery

service was wonder and thanked all that participated to make it a day of remembrance, reminded everyone about the Father’s Day cookout on June 21, 2009 at Pacheco Park, asked people to attend the Los Banos Volunteers for Animals event at Chili’s on June 8, 2009 from 10:30 a.m.-10:30 p.m., and spoke regarding his participation at the Sober Grad event. TOM FARIA: Thanked all those that participated with the Sober Grad event, was a great honor to sing at the Memorial Day ceremony, thanked the veterans for all they do, Flag Day event on June 10, 2009 at 6:00 p.m., the DES festa this weekend, mother is out of the hospital and at New Bethany and thanked all for their prayers, asked if the City needed Council action to get historical status for the two items discussed tonight, and asked that it be put on the agenda if it’s beneficial. MAYOR TOMMY JONES: Veterans’ Memorial Day was great, thanked Alvin Marques for all he does, Flag Day event on June 10, 2009, spoke to how he appreciates the Council Members for the job they are doing serving the City, there were many things misconceptions spoken of tonight, has always trusted god and always tried to do what is right, spoke of living in a democracy, his experience when he came home from Vietnam, respects the will of the people, people with strong opinions and strong tempers, the need to be a full community, would like the City Attorney & Police Chief to look into comments being made at the Public Forum and possibly discuss limitations on certain words that are used at the podium to spare children from hearing racist or vulgar comments, spoke of the ground breaking for the community center, and asked Redevelopment Agency Director Post to speak of the event. Redevelopment Agency Director Post spoke of the community center groundbreaking that will take place on Friday, June 12, 2009 at 12:30 p.m. and some festivities that will take place for this event. ADJOURNMENT. The meeting was adjourned at 9:45 p.m. to 4:30 p.m., Monday, June 8, 2009 to attend a 2009/2010 Fiscal Year Budget Workshop, hold a Public Hearing to receive public comment on the opportunities for Neighborhood Stabilization Program (NSP) funding to set up a Down-Payment Assistance Program for Los Banos residents, and consideration of adoption of a resolution approving an application for funding and the execution of a grant agreement and any amendments thereto from the State of California NSP being held in the Council Chambers, 520 J Street, Los Banos, California. APPROVED:

/s/ Tommy Jones___________ Tommy Jones, Mayor ATTEST:

/s/ Lucille L. Mallonee__________ Lucille L. Mallonee, City Clerk