City Council Headliners

Check out a few of the items before the City Council at its meeting Tuesday at 7:00 p.m.:

Non-Consent Calendar items of interest include:
--A public hearing will be held to on the Evans Estates-Pillsbury Estates Environmental Impact Report with related General Plan Amendment, Prezone,Vesting and Tentative Subdivision Map applications, and annexation referral to the Local Agency Formation Commission.

--Reports will be provided by Councilmen DeBrum and Hernandez on the League of California Cities Transportation, Communications, and Public Works Policy Committee and the LOCC Revenue and Taxation Policy Committee meetings held January 21, 2010.

--Public Works staff is seeking direction from the Council on its South Powers Avenue traffic-calming efforts.

Consent Calendar items of interest include:
--Waiver of the first reading by substitution of the title and introduction of Ordinance No. 1457, an ordinance repealing and revising in its entirety Chapter 1.10 related to Administrative Enforcement Provisions of the Manteca Municipal Code. A resolution establishing fees for violation of said provisions is also presented for approval.
--Approve plans and specifications and authorize a call for bids for the Wells 13, 19,and 21 Central Treatment Project - Phase I.
--Approve budget appropriations and an agreement with ATI for the purchase of an interactive voice response system.

A copy of the agenda packet is available at the following link on the City's website:http://www.ci.manteca.ca.us/CityClerk/agendas

Only the Names have been changed

Out here in the foreclosure belt, many blame the securitization of real estate for the boom-bust cycle we are now enduring. Securitization of loans allowed for a huge influx of cash into mortgages and huge group of middle men who profited from the sale of loans--and laughed all the way to the bank even if the loan later went into default.

While securitization was touted as something new and different, a recent article in the New York Times (click here) points out that securitization was first created in the 1920s--and may have played a major role in the financial collapse of 1929 that led to the Great Depression.

Here are some gems from the article:

“Easily obtainable financing via public capital markets corresponded with an urban construction boom,” reported William N. Goetzmann and Frank Newman in a paper just released by the National Bureau of Economic Research, titled “Securitization in the 1920s.”

“Regulation and centralization were glaringly absent,” they add. “Ultimately the size, scope and complexity of the 1920s real estate market undermined its merits, causing a crash not unlike the one underpinning our current financial crisis.”

Yet the lessons of that boom and bust have largely been ignored. Everyone remembers the 1920s and the stock market crash of 1929, but there has been little data collected on what happened to real estate securities or even on how large a market it was. It turns out that real estate securities constituted a major market, and began to falter before stocks did.

“The breakdown in their valuation, through the mechanism of the collateral cycle, may have led to the subsequent stock market crash of 1929-30,” they wrote.

The writer goes on to conclude:

That fact should raise questions about whether the securitization machine should be patched up and back in business to operate without government guarantees.

Perhaps, instead, we should find a way to get banks and other long-term investors, like insurance companies, to make — and keep — most of the real estate loans that are needed in society...

It was, instead, the same old speculative enthusiasm, even if it was wearing fancy new clothes. Investors who had seen real estate prices rise thought that trend could not end. Wall Street sharpies thought they had found a way to make lots of money while not bearing the ultimate risk if the game suddenly ended.

As it turned out, the sharpies were wrong. They too got swept up in the carnage — just as their predecessors had in the 1930s.

Great words to ponder as we look to our leaders to regulate future financial programs.

Highlights from "The Week in Review" (TWIR)

You can access the entire TWIR and previous editions by clicking on the link on the right side of this page.

Fire
Emergency Incidents: We had a total of 84 incidents this week, which included 4 that were fire related: 1-Vehicle Fire, 2-Outdoor Fires and 1-Rubbish/Trash Fire. The remaining calls this week were: EMS-45, Vehicle Accidents-7, Service Calls-12 and Other Emergencies-16.

Fire Prevention: This week’s Fire Prevention Activities included: Business Inspections-44, New Construction Inspections-5, Plan Checks-8, Certification of Occupanies-2, Business License Inspections-2 and Fire System Checks-8.

Police
Shooting: On January 27 at 7:47 p.m., Patrol officers were dispatched to the area of the 1200 Block of Parkview Street for a report of shots fired. Dispatch received multiple 9-1-1 calls regarding shots being heard. Officers located three spent shotgun shells in the street in front of 1288 Parkview St. Police received additional information that, after the shots were fired, two subjects were seen running into the residence on Scott Place. The wadding from the shotgun shells was found not far from the back fence of the identified residence. Officers could not locate anything that had been hit from the rounds fired. The subjects contacted at the Scott Place address denied being involved in any altercation or confrontation. They did not seem to be eager to assist law enforcement and denied knowing what had occurred. The only suspect information provided was that a subject with a shotgun was seen getting into a black Kia four-door car after the sound of shots was heard. The Kia had no hubcaps and was very dirty, as if it had been driven through a field. The subject with the shotgun was described as an Hispanic male, unknown age, 5’11”, 220 pounds with a white T-shirt and blue jeans. There were two other subjects who also got into the Kia, but no description could be provided, other than they were also Hispanic males.

Public Works
Solid Waste Truck Fire: The Solid Waste Division had a garbage truck fire Tuesday morning, January 26 – the first in several years. There was no damage to the truck and no employees were injured. The driver was collecting residential garbage in an automated truck in the vicinity of Powers and Pine when another City employee noticed smoke coming from the rear of the truck. The truck was driven to an empty dirt lot northeast of The Strike Zone and the load was dumped. The Fire Department responded and extinguished the fire. Staff cannot be absolutely certain of the cause of the fire, but there had to be some smoldering trash in a can that was collected, probably fireplace ashes. These fires used to be much more common, but fortunately, are now very rare. This event was used as an opportunity to review with staff the proper procedures for handling such a fire. Residents are reminded that fireplace ashes and charcoal must not be placed in garbage containers until they are cold and out. We were fortunate to catch this fire early. If we had not, we could have lost a truck worth over $200,000.

Parks and Recreation
Parks’ Storm Response: High winds and a lot of rain can be a dangerous combination as it relates to trees. As the ground becomes saturated with water, the stability of the trees is compromised. The high winds and heavy rains that we recently experienced caused numerous tree problems throughout the City. Maintenance staff responded to 12 trees that blew over, including four at the golf course, and also responded to another 30 calls throughout the City for downed limbs. Administrative staff responded to dozens of other calls on general tree concerns, both public and private. Maintenance staff worked closely together to clear all obstructions and cleanup. Even the best-maintained trees can be a target in severe storm conditions. However, if the canopy of the tree is maintained to allow air to blow through it, the chances of the tree suffering damage are reduced dramatically.

Community Development
Building Safety Activities: The City’s Building Safety Division conducted a total of 296 inspections during this past week. The division issued 23 building permits, which included 1 Commercial Demolition, 1 Handicap Accessibility, 1 Hood and Duct, 1 Miscellaneous Electrical, 2 Miscellaneous Mechanical, 8 Miscellaneous Plumbing, 2 Patio, 1 Residential Addition, 1 Residential Remodel, 2 Swimming Pools, 1 Vanilla Shell in Spreckels Park and 2 Commercial Remodels. JoAnn’s Fabrics in Stadium Center is working on opening within the former Circuit City location, and WalMart is conducting a major interior remodel. A total of 8 new project applications were submitted for plan check services, which included 2 Fire Alarms, 1 Garage Conversion to a Sales Office, 1 Pool Master, 1 Patio, 1 Residential Fire Repair, 1 Residential Remodel and 1 Swimming Pool.

Community Based Government - Minnesota Style

As we begin implementing Community Based Government, I thought it would be instructive to provide links to the many cities that have been doing this for decades. While diminishing government revenues are a somewhat new concept in California, many rust belt cities experienced this phenomenon several decades ago when many of their manufacturing concerns headed south and overseas.

While the majority of the neighborhood revitalization programs are along the eastern seaboard, there are a smattering of great programs that were implemented in the upper midwest.

Minneapolis initiated their Neighborhood Revitalization Program (NRP) back in the late 1980s. '

The program now has an extensive web presence at http://www.nrp.org/

The site does a great job of providing the history of the program and describes the many programs currently in place. The website is also includes many resource pages that can be used by their local neighborhood groups. Here is their overview the program:

NRP Primer

THE NRP CONCEPT
The Minneapolis Neighborhood Revitalization Program (NRP) makes the city's residential areas better places to live, work, learn and play. NRP is an investment program based on truly empowering residents by bringing them into the priority-setting process of the city. It is based on the belief that the empowerment of residents and the mobilization of untapped resources, energy and creativity can make our collective desire for a better future a reality.

Neighborhood based priority setting, planning, and implementation are NRP's core. Residents and other neighborhood stakeholders create Neighborhood Action Plans (NAPs) that describe the neighborhood they want in the future and the goals, objectives and specific strategies that will help accomplish their vision. NRP completes the empowerment process by providing funding to each neighborhood to help implement their approved NAP.

Neighborhoods implement their NRP plans by working with government and others. Through NRP, residents have learned to work with City, County, Parks, Library and School staff, and to use these experts' knowledge and resources to help improve their neighborhood. Developing new partnerships and renewing old ones helps produce creative solutions. The partnerships created are as varied as the people and interests involved in neighborhoods.

All 84 Minneapolis neighborhoods are involved in NRP. Thousands of Minneapolis residents have used the NRP planning process to identify and help meet their neighborhood's housing, safety, economic development, recreation, health, social service, environment and transportation needs. They build a foundation for their future by organizing residents, gathering information, prioritizing needs, brainstorming solutions and implementing the NAP they develop. From increasing the amount of affordable housing to improving the environment, building community centers to creating new jobs and providing services to seniors, Minneapolis residents are the creators and catalysts of change - change aimed at reestablishing a sense of common purpose in their community.

Deja Vu All Over Again

The City of Salinas has a General Fund budget very similar to ours -- i.e. very low revenue per capita. I thought I'd share the following article from their local newspaper. It looks like they are taking many of the same measures that we did (including an identically sized budget committe) -- except they are doing at a painful year later than us!

Here's the story (click here for link):

Comparing the city to a patient who is "flatlining" in an intensive care unit, Mayor Dennis Donohue on Monday outlined the causes of Salinas' financial crisis and the coming steps to revive it.

In his State of the Budget address at the City Hall Rotunda, the mayor said the city is identifying $9.6 million in cuts to services, staff and salaries to balance its next budget.

For the past decade, Donohue said, Salinas has been "resuscitated under Code Blue time and again," beginning with the financial crisis that led to the City Council's decision, before Measure V came along, to close libraries.

"[T]he city as patient is flatlining in the budget, and it is unlikely even the EMT's can get there in time to save the patient for yet another life," Donohue said.

But even as he predicted another shortfall next year and decried the city's repeated returns to crisis-management mode, Donohue said the patient would not die and promised to help transform government "so that we don't have to call Code Blue every year."

The first step, he said, comes Feb. 2 with the appointment of a blue ribbon budget review committee to recommend cuts and revenue enhancements to the council. The committee will be comprised of up to 15 members from various sources, including city staff; the independent budget review committee; the planning and permit task force; the Measure V oversight committee; neighborhood groups; and members of the public, including participants in the Saving Salinas forum at TheCalifornian.com.

The committee will give a final report May 6.

On March 2, the city's first layoff notices will go out after a council review of its budget-balancing plan. The notices will be tentative until closer to the July 1 start of the fiscal year. The current plan calls for about 68 layoffs across departments. The city plans to approach its unions for new concessions on top of the $12 million negotiated in the past two years.

Donohue defended the 2007 pay raises to police, fire and other employees that were identified as a "possible cause" of the city's structural deficit in a report last week from the nine-member independent budget-review committee.

"We couldn't get enough officers, or those we got left town really fast, and we were constantly chasing our tail and raising our overtime and training costs," he said. "We attract locally, but we lose to the Bay Area. The council made a decision ... that we will be competitive to the tri-county area. That's reasonable.

"You can't squeeze blood out of a turnip. The low end of the salary spectrum really is not going to get you to a significant place .... Even if you got some additional concessions, we do not break the groundhog cycle with salary concessions," he said, referring to the movie "Groundhog Day," in which a man relives an unpleasant day over and over.

In 2007, the council approved raises of 12 percent for Salinas firefighters and 25 percent for police officers and management, spread out over two to two-and-a-half years; and 18 percent for 350 other employees.

What would end the city's cyclical financial crises? Donohue identified the "root cause" as insufficient revenue, comparing the $485 in per capita revenue for Salinas to $552 in Seaside; $581 in Watsonville; $634 in Gilroy; and $1,832 in Monterey.

"Our tax base continues to shrink, but the demand for services continues to grow," he said. "If you want a different outcome on the gang issue, we're going to have to make a major investment."

He declined to say whether that investment should take the shape of a tax increase.
"We will need to engage in a full-scale community engagement process [on the investment], even the equivalent of our own Salinas constitutional convention," Donohue said

Aquatics Center

In the depths of the recession and with a wounded budget, it is sometimes hard to think about the future. Conversely, since you don't have the resources to start projects today, it is a great time to start planning for the future.

The City of Tracy is currently in the process of putting together a plan for an aquatics center (click here for story and here). This is one of the amenities that many communities put at the top of their priority list when resources are available.

For those of you who haven't been to a modern aquatics center, they aren't just another swimming pool. They are a lot more like a water park than they are a high school pool. Most of the projects incorporate a traditional pool, but it is the other features that draw the crowds and help pay for the standard pool. Your traditional pool doesn't pay for itself, but the lazy rivers and water slides help make up the difference.

While the City of Manteca isn't currently looking at this type of project, we certainly should take a hard look before Tracy steals our thunder. If you'd like to learn a bit more about these aquatic centers, I've attached the feasibility study that Tracy commissioned for their pool.



Tracy%2520Swim%2520Center%2520Study-%2520Revised%252010-8-09.pdf

Welcome to J.M. Equipment!

As you may know, the vacant Sexton Chevrolet dealership is quickly filling up with a top flight user--who is not only the perfect user for the location, but a user who will fill the gap in sales tax revenues that was lost when Sexton closed.

Many players both inside and outside of City Hall worked very hard to make this business relocation and expansion a reality. It is proof positive that Manteca means business!

Here is a story in today's Modesto Bee about our latest corporate partner:


J.M. Equipment leaving Modesto, Stockton shops
Firm will consolidate in Manetca
By J.N. Sbranti
mailto:Sbrantijnsbranti@modbee.com

For 74 years, Modesto has been the J.M. Equipment Co.'s corporate headquarters and oldest store. That's about to change. The company is closing its Modesto and Stockton shops, merging its staff and moving to Manteca.

The move will affect 80 workers, including about 55 in Modesto.

"We're going to try to hang on to all our employees, but we know it's going to be tough for everyone now working in Modesto (to commute to Manteca)," said David Baiocchi, one of the company's co-owners. "We're going to work with scheduling to help everyone we can."

Baiocchi and five partners, all of whom had been J.M. Equipment employees, bought the company in 1999. The deal included a 10-year lease for the Modesto and Stockton stores. Since that decadelong obligation ended, the company has been trying to leave.

"If you were on Ninth Street, you would want out, too. It's a pretty bad neighborhood," Baiocchi said of the 3.7-acre facility at 819 S. Ninth St. in Modesto. "There was a shooting next door to us a few weeks ago. It was a random act of violence."

It wasn't always a rough neighborhood.

Jack Moore founded the company in 1936 as an Allis-Chalmers tractor dealer. It was conveniently located with Highway 99 and rail access. The site was so popular during World War II that it was used to build Jeeps, Baiocchi said.

Over the decades, the company opened locations in Stockton, West Sacramento, Fresno and Patterson.

The chain sells and services agricultural and material handling equipment throughout the Central Valley. That includes farm and hay equipment, feed boxes, forklifts and nut harvesting machinery.

"We have 60 vans on the road," Baiocchi said, "because we go to our customers to service the equipment."

He said employees can service anything within a one-hour drive of a store.

"Having stores within 30 minutes of each other in Modesto and Stockton didn't make sense," Baiocchi said. "We needed to consolidate."

So the company jumped when the perfect spot at a bargain price became available.
Manteca's Sexton Chevrolet closed in June, and GMAC took possession of the 7-acre site in November in lieu of foreclosure.

"GMAC was desperate to sell it," said Baiocchi, noting that it would have cost his company far more to build something smaller elsewhere.

The company paid $3.5 million for the property, including its 32,000-square-foot building, at 321 Spreckels Ave.

The deal closed Dec. 29.

"The parts and service departments and the showroom are already there," said Baiocchi, noting that the dealership was built just eight years ago. "All we've got to do is clean up and paint."

The company plans a grand opening for April in Manteca, but it has not announced specific dates for closing the Modesto and Stockton stores.

In addition to the Manteca shop, J.M. Equipment will establish spots in Turlock, Stockton and Lodi where customers can drop off parts for serv- icing.

That is supposed to help the company improve efficiency and lower costs, while providing customer convenience.

J.M. Equipment's Patterson store, at 16507 Highway 33, will have its service capabilities enhanced. A full shop and field service department will open there this spring.

The Modesto and Stockton properties are owned by George Betker of Oakdale. Betker said he will try to find new companies to buy, lease or rent the open space.

"Industrial property isn't the hottest thing on the market," Betker acknowledged. The Modesto property includes about 36,644 square feet in seven buildings.

Bee staff writer J.N. Sbranti can be reached at jsbranti@modbee.com or 578-2196.

Read more: http://www.modbee.com/featured/story/1023021.html#ixzz0dlvEj9ZF