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HomeMy WebLinkAboutMinutes - City Council - 2001-05-01 97 City Council, Regular Meeting Civic Center Council Chambers 777 Cypress Avenue, Redding, California May 1,2001, 7:00 p.m. The Pledge of Allegiance to the Flag was led by Council Member Stegall. The Invocation was offered by Council Member Mike Pohlmeyer. I The meeting was called to order by Mayor McGeorge with the following Council Members present:. Cibula, Pohlmeyer, and Stegall. Council Member Kight was absent. Also present were City Manager Warren, Assistant City Manager Perry, Deputy City Manager Starman, City Attorney Wingate, Electric Utility Director Feider, Development Services Director Hamilton, Support Services Director Kersten, Administrative Services Director Bachman, Community Services Director Niemer, Finance Officer Strong, Electric Utility Group Manager Keener, City Engineer Goodwin, Senior Redevelopment Project Coordinator Haddox, Housing Program Supervisors Buckley and Meek, City Clerk Strohmayer, and Assistant City Clerk Sherman. I RESO L UTI ON - Supporting Development of a California Veterans' Home Facility in Shasta County (A-050-060) Mayor McGeorge explained that north state veterans and their families are significantly under-served with regard to essential services such as rehabilitation, residential medical care, and services to elderly or disabled veterans. The closest facility to provide this type of care is located in Y ountville in Napa County. Mr. McGeorge related that a specific site for a facility in the north state area has not yet been identified, but will likely be located in Anderson, Redding or the City of Shasta Lake. Mr. McGeorge indicated that should Redding be selected as the preferred location, it will mean between 1,000 to 1,600 new jobs in the community, and the only cost to the City will be to provide a 30-acre site. The balance of this $30 to $40 million project will be paid for by the California Department of Veterans' Affairs. It is the recommendation of the Mayor that Resolution 2001-72 be adopted, a resolution of the City Council of the City of Redding expressing support for the development of a California State Veterans' Home Facility in Shasta County. Council Members PoWmeyer and Stegall thanked Mayor McGeorge for his support and advocacy to bring a Veterans' Home Facility to Shasta County. MOTION: Made by Council Member Cibula, seconded by Council Member Stegall adopting Resolution No. 2001-72, a resolution of the City Council of the City of Redding supporting the development of a California State Veterans' Home Facility in Shasta County. The Vote was as follows: Ayes: Noes: Absent: Abstain: Council Members - Cibula, Pohlmeyer, Stegall, and McGeorge Council Members - None Council Members - Kight Council Members - None I Resolution 2001-72 is on file in the Office of the City Clerk. CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Minutes - Special Meetings of April 3, 2001, and April 17, 2001. 05/01/2001 98 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 19, check numbers 287896 through 288419 inclusive, in the amount of$2,733,325.39, for the period of April 3, 2001, through April 12, 2001, and Payroll Register No. 20, check numbers 479527 through 479815 and electronic deposit transaction numbers 89287 through 89884 inclusive, in the amount of $1,515,852.95, for the period of March 18,2001, through March 31, 2001, be approved. TOTAL $4,249,178.34 It is further recommended that Accounts Payable Register No. 20, check numbers 288420 through 288943 inclusive, in the amount of$3,370,851.35, for the period of April 14, 2001, through April 26, 2001, and Payroll Register No. 21, electronic deposit transaction numbers 89892 through 90492 and check numbers 479816 through 480123 inclusive, in the amount of $1,568,943.92, for the period of April 1, 2001, through April 14, 2001, be approved. TOTAL $4,939,795.27 I Treasurer's Report for the month of March 2001 (A-050-100-600) Total Treasurer's Accountability $120,187,586.11 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities $161,620,146.53 ACR133 Report and Cash Reconciliation (F-205-095-650) It is the recommendation of the Administrative Services Director that the ACR133 Report and the Proof of Cash Reconciliation for March 2001 be accepted. Shasta County Public Health Department - Waiver of City Council Policy No. 1201 (A-050-060-555 & P-050-450) It is the recommendation of the City Manager that the City Council approve the request by Shasta County Public Health Department for a waiver of City Council Policy 1201 regarding use of South City Park for a one-day fair on Saturday, June 2, 2001. I Property Status Report (C-070) It is the recommendation of the Assistant City Manager that the City Council accept the Property Status Report as of April 27, 2001, which includes the following: 1) Surplus City Property, 2) Leases of City Land, 3) Offers to sell Land to the City, 4) City-Initiated Purchases of Land. Resolution - Used Motor Oil Recycling Block Grant application with the California Integrated Waste Management Board (G-100-170 & P-150-050-500) It is the recommendation of the Assistant City Manager that Resolution 2001- 73 be adopted, a resolution of the City Council of the City of Redding authorizing the submittal of a used oil recycling block grant application for $25,156 in fiscal year 2001-02 to the California Integrated Waste Management Board. Joint Purchasing Agreement with Los Angeles County - Procurement of office and stationery supplies and equipment (B-050-100) It is the recommendation of the Director of Support Services that the City Council authorize staff to enter into the U.S. Communities Government Purchasing Alliance ( GPA) Los Angeles County Contract effective immediately through March 4, 2004, or as may be extended to purchase office and stationery supplies and equipment from Office Depot. I Donation of Surplus Computer Equipment - Community Volunteer Center/Retired and Senior Volunteer Program (B-050-100) It is the recommendation of the Director of Support Services that the City Council authorize the donation of surplus computer equipment to the Community Volunteer Center/Retired and Senior Volunteer Program, a non-profit organization in Redding. 05/01/2001 99 Amendment to Consulting & Professional Services Agreement - Coffman & Associates (A-090-IOO) It is the recommendation of the Director of Support Services that the City Council approve the First Amendment to the Airport Consulting and Professional Services Agreement, C- 3623, with Coffman Associates extending the contract term by an additional six (6) months to October 16,2001, to provide adequate time to complete final phase projects. I Resolution - Creating a Design Review Committee for the Parkview Avenue mixed use corridor of the Parkview Neighborhood Strategic Revitalization Plan Area (B-080-600 & R-030-145-350) It is the recommendation of the Assistant City Manager that Resolution 2001-74 be adopted, a resolution of the City Council of the City of Redding creating a Design Review Committee for the Parkview Avenue mixed use corridor of the Parkview Neighborhood strategic revitalization plan area. Proiect Agreement No.4 Participation - Transmission Agency of Northern California (T ANC) (E-120-250) It is the recommendation of the Electric Utility Director that the City Council approve the City of Redding's participation in the Transmission Agency of Northern California's (TANC) Project Agreement No. 4 for the "Investigation of the Los Banos-Gates Transmission Project" to repair the transmission bottleneck between Northern and Southern California known as Path 15. Grant Applications - Federal Emergency Management Agency (G-100-070 & P-I50-070) It is the recommendation of the Fire Chief that the City Council approve submission of the application to the Federal Emergency Management Agency (FEMA) for a grant allowing the Fire Department to request funding in the amount of $134,434 to purchase code compliant self-contained breathing apparatus, and $9,500 to prepare four demonstration sites of residential sprinkler systems installation. I Grant Application - Office of Criminal Justice Planning (G-100-170 & P-150-150) It is the recommendation of the Chief of Police that the City Council approve the submission of an application to the Office of Criminal Justice Planning for a Career Criminal Apprehension Program State-of-the-Art Grant in the amount of $98,476 to assist the Department in obtaining computers, software, and training for the Crime Analysis Unit. Resolution - Accepting Streets and Improvements (S-070-230) It is the recommen~ation of the Assistant City Manager that Resolution 2001-75 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation that portion of Sonoma Street located from 2439/2440 to 2384/2395; and accept improvements as satisfactorily completed. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall that all the foregoing items on the Consent Calendar be approved and adopted as recommended. The Vote: I AYES: NOES: ABSTAIN: ABSENT: Council Members - Cibula, Pohlmeyer, Stegall, and McGeorge Council Members - None Council Members - None Council Members - Kight Resolution Numbers 2001-73, 2001-74 and 2001-75, are on file in the office of the City Clerk. PUBLIC HEARING - Proposed Acceptance of Action Plan and Funding Recommendation for the Community Development Block Grant Program (G-100-030-046) The hour of7:00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding the proposed Action Plan and Funding Recommendations for use of Community Development Block Grant (CDBG) Funds for the 2001-02 program year. 05/01/2001 100 Council Member Stegall indicated that she would abstain from discussion and voting on this matter due to her affiliation with the Shasta County Women's Refuge, a recipient agency of CDBG funds. Council Member Cibula indicated that he, too, would abstain from discussion and voting on this matter due to a conflict of interest related to his wife's business firm. City Attorney Wingate advised that resolutions involving expenditure of funds require a majority vote. With the absence of Council Member Kight, and abstaining votes from Council Members Stegall and Cibula, the resolution will fail. Mr. Wingate counseled that Council Member Cibula's perceived conflict of interest was without foundation due to the fact that his wife's agency is not receiving CDBG funds, and an application for funds denied, does not preclude Mr. Cibula from voting on this matter. Mr. Wingate advised Council Member Cibula that there is no conflict of interest. I Deputy City Manager Starman provided an overview of the Report to City Council dated April 23, 2001, regarding the proposed Action Plan and Funding Recommendations relative to the CDBG fund program. Mr. Starman explained that the City of Redding, defined as an "entitlement city" by the Department of Housing and Urban Development (HUD), receives a CDBG allocation each fiscal year for utilization in developing and implementing plans, programs and projects to provide decent housing and economic opportunities for low- and moderate-income individuals and families. Mr. Starman reviewed allocated funding amounts to various activities: $129,608 is available for Public Service Activities; $262,469 for Housing Management Services, $95,800 for Program Administration; $300,000 for repayment of the Section 108 loan for the Yuba Street Streetscape Project; and $340,315 is available for Other Eligible Public Activities which incorporates the "priority projects" (Americans with Disabilities Act (ADA), and neighborhood improvements) strategy adopted by Council in 1997. Mr. Starman added that the Community Development Advisory Commission (CDAC) recently concluded a two-month review process, and has finalized recommendations for the 2001-02 program year. It is the recommendation of staff that Council approve the proposed Action Plan and Funding Recommendations regarding the CDBG program, and the resolution authorizing the City Manager to file the Action Plan with HUD. I Mayor McGeorge determined that no one present wished to speak on the matter and closed the public hearing. MOTION: Made by Council Member Po hIm eyer, seconded by Council Member Cibula adopting Resolution No. 2001-76, a resolution of the City Council of the City of Redding accepting the 2001-2002 Program Year Action Plan regarding the use of Community Development Block Grant funds, and authorizing the City Manager or his designee to sign all necessary documents and submit the Action Plan to the U.S. Department of Housing and Urban Development. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members: Cibula, Pohlmeyer, and McGeorge Council Members: None Council Members: Stegall Council Members: Kight Resolution No. 2001-76 is on file in the Office of the City Clerk. PUBLIC HEARING - Proposed Acquisition of Property by Eminent Domain for Parallel Eastside Sewer Interceptor Project (C-070-010 & W-020-61O) The hour of7 :00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding the proposed acquisition of property through Eminent Domain proceedings for the Parallel Eastside Sewer Interceptor Project. I Council Member Cibula indicated that he would abstain from discussion and voting on this matter due to a conflict of interest involving one of the affected property owners who is a former client of his law firm. City Attorney Wingate advised that Eminent Domain issues 05/0112001 101 require a 4/5ths vote of the City Council, and because Council Member Cibula has no ongoing relationship with this individual, there is no conflict of interest. I City Attorney Wingate reviewed the Report to City Council dated April 23, 2001, incorporated herein by reference, regarding the proposed adoption of resolutions of necessity to acquire easements essential to the progress ofthe Eastside Sewer Interceptor Project. Mr. Wingate related that the alignment selected for the project will affect four privately-owned parcels. These properties (Brunelli, Thurber, Walgamuth and Bartlett-Ledford), located in the 1500 block of Old Alturas Road and the 1800 block of Keystone Court, will allow the pipeline to basically follow the flow of Chum Creek. Mr. Wingate related that the existing Eastside Sewer Interceptor follows Chum Creek and collects wastewater from the north and east area of Redding. The pipeline, built in 1977 with federal grant funds and a limited ten- year growth horizon, is now experiencing a sever restriction of its total capacity of approximately 5 million gallons per day. Mr. Wingate explained that population in this area continues to increase, and the aged, deteriorated pipeline is further taxed by high wet-weather flows which have caused surcharging, leaking, and occasional overflow. He indicated that an alignment study conducted by CH2M Hill reviewed numerous alternate locations - all of which presented constraints due to such things as the location of Chum Creek, riparian habitat, proximity to residences, ground topography, etc. Deviating from the recommended alignment will increase the cost of the project, the size of the pipeline, traffic disruption, and will require acquisition of considerably more right-of-way. Mr. Wingate pointed out that in order to acquire real property by eminent domain, the City must first adopt resolutions of necessity for property owners Paul, Darrell and Paul C. Brunelli, Michael D. and Jeannette A. Thurber, and John and Sharon Walgamuth. Mr. Wingate advised that a settlement with the fourth party, property owners Chad Bartlett and Julie Ledford, has been reached and further action by Council is not required for this parcel. I James Braden, Project Engineer for Kennedy Jenks Consultants explained that the packet provided to Council contains all pertinent material necessary for consideration. The project is necessary to provide adequate capacity to this sewer line. He related that the alignment study conducted by CH2M Hill in 1992 examined alternate routes, but identified the current route as the most appropriate. Mr. Braden affirmed that the easements are necessary for this project. In response to Council Member Cibula, Mr. Braden explained that overflow and surcharging events are prohibited by law, and this line has previously experienced both. Mr. Wingate explained that the City Council must determine if public interest and necessity require the project; that the project is planned or located in a manner that would be most compatible with the general public good and the least private injury; and that the property to be acquired is necessary for the project. He stressed that discussion and questions regarding compensation to be paid are not part of the proceedings and should not be considered in determining whether a resolution of public convenience and necessity should be adopted. I Mr. Wingate confirmed with City Clerk Strohmayer that Notices ofIntent regarding Eminent Domain proceedings were mailed to all property owners, and she reported that letters were received from property owners Walgamuth and Thurber. He advised that the public hearing process provides an opportunity for affected property owners to appear and discuss the project's impact on their property. However, only affected property owners should be heard. It is the recommendation of staff that Council adopt the appropriate resolutions of necessity with the required findings to acquire easements across the Brunelli, Thurber, and Walgamuth properties for the Eastside Sewer Interceptor Project. Ms. Walgamuth related her understanding of the importance of the project. While not opposed to the utilization of her property, she emphasized the necessity of receiving timely information from the City regarding the process. She explained that her concern regarding 05/0112001 102 the project's substantial encroachment on her property was recently alleviated by the City's identification of the west line of the easement, and the realization that the impact on her property will not be as severe as previously thought. Ms. Walgamuth indicated that many easements currently exist on her property, and the City's encroachment jeopardized her plans to build a carport along the fence line. However, the new easement will allow those plans to go forward. She related that an agreement can be reached provided she is kept informed and treated fairly by the City. Council Member Cibula expressed appreciation to Ms. Walgamuth for speaking and commended City Attorney Wingate for working cooperatively with affected property owners. I MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall adopting Resolution No. 2001-77, a resolution by the City Council of the City of Redding finding that public convenience and necessity require acquisition, for easement purposes, of real property by Eminent Domain: Paul, Darrell & Paul C. Brunelli Property, located at 1593 Old Alturas Road. The Vote: AYES: NOES: ABSTAIN : ABSENT: Council Members: Cibula, Pohlmeyer, Stegall and McGeorge Council Members: None Council Members: None Council Members: Kight Resolution No. 2001-77 is on file in the Office ofthe City Clerk. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall adopting Resolution No. 2001-78, a resolution by the City Council of the City of Redding finding that public convenience and necessity require acquisition, for easement purposes, of real property by Eminent Domain: Michael D. & Jeanette Thurber Property, located 1884 Keystone Court, Unit A. The Vote: AYES: NOES: ABSTAIN : ABSENT: Council Members: Cibula, Pohlmeyer, Stegall and McGeorge Council Members: None Council Members: None Council Members: Kight I Resolution No. 2001-78 is on file in the Office of the City Clerk. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall adopting Resolution No. 2001-79, a resolution by the City Council ofthe City of Redding finding that public convenience and necessity require acquisition, for easement purposes, of real property by Eminent Domain: John & Sharon Walgamuth Property, located at 1877 Keystone Court. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members: Cibula, Pohlmeyer, Stegall and McGeorge Council Members: None Council Members: None Council Members: Kight Resolution No. 2001-79 is on file in the Office of the City Clerk. PUBLIC HEARING - Landscape Maintenance District "A;" Ordering the Levy and Collection of Assessments for Fiscal Year 2001-02 (A-170-075-050) The hour of7:00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding assessments for Landscape Maintenance District "A." I The following document is on file in the office of the City Clerk: Affidavit of Publication - Notice of Public Hearing City Clerk Strohmayer advised that no written protests were received. 05/01/2001 103 I Support Services Director Kersten provided an overview of the Report to City Council dated April 23 , 2001, incorporated herein by reference, regarding Landscape Maintenance District "A." He announced that the assessment proposed for Fiscal Year 2001-2002 is $29.46 per lot, affecting 21 subdivisions consisting of 1,760 lots. Mr. Kersten stated that the assessment has remained status quo since Fiscal Year 1997-1998 due to the quality of work performed by the landscape maintenance contractor, and the fact that the contractor has agreed to an equal level of maintenance for next fiscal year with only a four percent cost increase. There are sufficient reserves and built-in contingencies to cover the increase without raising assessments. It is the recommendation of staff that City Council adopt a resolution confirming the diagram of the assessment district contained in the engineer's report and ordering the levy of the annual assessments for Fiscal Year 2001-2002. Mayor McGeorge determined that no one present wished to address this matter and closed the public hearing. MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer, that Resolution No. 2001-80 regarding Landscape Maintenance District "A" be adopted, a Resolution of the City Council of the City of Redding confirming the diagram of the assessment district contained in the engineer's report; and ordering the levy of the annual assessments for Fiscal Year 2001-2002 in the amount of $29.46 per lot pursuant to the Landscaping and Lighting Act of 1972 (commencing with Section 22500 of the Streets and Highways Code). The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Cibula, Pohlmeyer, Stegall and McGeorge Council Members - None Council Members - None Council Members - Kight I Resolution No. 2001-80 is on file in the office of the City Clerk PUBLIC HEARING - Landscape Maintenance District "B;" Ordering the Levy and Collection of Assessments for Fiscal Year 2001-02 (A-170-075-051 ) The hour of7:00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding assessments for Landscape Maintenance District "B." The following document is on file in the office of the City Clerk: Affidavit of Publication - Notice of Public Hearing City Clerk Strohrnayer advised that no written protests were received. I Support Services Director Kersten provided an overview of the Report to City Council dated April 23 , 2001, incorporated herein by reference, regarding Landscape Maintenance District "R" He reported that the assessment proposed for Fiscal Year 2001-2002 is $71.00 per lot, affecting 17 subdivisions consisting of 802 lots. Mr. Kersten stated that the assessment has remained the same since Fiscal Year 1997-1998 due to the quality of work performed by the landscape maintenance contractor, and the fact that the contractor has agreed to an equal level of maintenance for next fiscal year with only a four percent cost increase. There are sufficient reserves and built-in contingencies to cover the increase without raising assessments. It is the recommendation of staff that City Council adopt a resolution ordering annexation of Unit 3 ofthe White Hawk Estates Subdivision; annexation of Unit 18 of the Ravenwood Estates Subdivision; confirming the diagram of the assessment district contained in the engineer's report, and ordering the levy of the annual assessments for Fiscal Year 2001-2002. Mayor McGeorge determined that no one present wished to address this matter and closed the public hearing. 05/01/2001 104 MOTION: Made by Council Member Kight, seconded by Council Member Pohlmeyer, that Resolution No. 2001-81 regarding Landscape Maintenance District "B" be adopted, a Resolution of the City Council ofthe City of Redding ordering annexation of Unit 3 of the White Hawk Estates Subdivision into Area 13 of the District; ordering annexation of Unit 18 of the Ravenwood Estates Subdivision into Area 14 of the District; confirming the diagram of the assessment district contained in the engineer's report, and ordering the levy of the annual assessments for Fiscal Year 2001-2002 in the amount of $71.00 per lot pursuant to the Landscaping and Lighting Act of 1972 (commencing with Section 22500 of the Streets and Highways Code). The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Cibula, Pohlmeyer, Stegall and McGeorge Council Members - None Council Members - None Council Members - Kight I Resolution No. 2001-81 is on file in the office of the City Clerk PUBLIC HEARING - Landscape Maintenance District "C;" Ordering the Levy and Collection of Assessments for Fiscal Year 2001-02 (A-170-075-052) The hour of7 :00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding assessments for Landscape Maintenance District "C." The following document is on file in the office of the City Clerk: Affidavit of Publication - Notice of Public Hearing City Clerk Strohmayer advised that no written protests were received. Support Services Director Kersten provided an overview of the Report to City Council dated April 23, 2001, incorporated herein by reference, regarding Landscape Maintenance District "C." He related that the assessment proposed for Fiscal Year 2001-2002 is $7.46 per lot, affecting six subdivisions consisting of 340 lots. Mr. Kersten stated that the assessment has remained the same since Fiscal Year 1997-1998 due to the quality of work performed by the landscape maintenance contractor, and the fact that the contractor has agreed to an equal level of maintenance for next fiscal year with only a four percent cost increase. There are sufficient reserves and built-in contingencies to cover the increase without raising assessments. I It is the recommendation of staff that City Council adopt the resolution levying assessments for Fiscal Year 2000-2001 in Landscape Maintenance District "C." Mayor McGeorge determined there was no one present wishing to address this matter and closed the public hearing. MOTION: Made by Council Member Kight, seconded by Council Member Pohlmeyer, that Resolution No. 2001-82 regarding Landscape Maintenance District "C" be adopted, a Resolution of the City Council of the City of Redding confirming the diagram of the assessment district contained in the engineer's report, and ordering the levy of the annual assessments for Fiscal Year 2001-2002 in the amount of $7.46 per lot pursuant to the Landscaping and Lighting Act of 1972 (commencing with Section 22500 of the Streets and Highways Code). The Vote: I AYES: NOES: ABSTAIN: ABSENT: Council Members: Cibula, Pohlmeyer, Stegall and McGeorge Council Members: None Council Members: None Council Members: Kight Resolution No. 2001-82 is on file in the Office of the City Clerk. 05/0112001 105 APPOINTMENTS AND REAPPOINTMENT - Redding Planning Commission (B-080-300) Mayor McGeorge requested Council's concurrence in the appointments of James Chapin and Ron Largent, and the reappointment of Marcus Woodward to the Planning Commission. I MOTION: Made by Council Member Cibula, seconded by Council Member Stegall reappointing Marcus Woodward to the Planning Commission to serve a four-year term expiring May 1,2005; appointing James Chapin to serve four year term expiring May 1, 2005, and appointing Ron Largent to serve an unexpired term ending May 1,2003. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members: Cibula, Pohlmeyer, Stegall and McGeorge Council Members: None Council Members: None Council Members: Kight I PRESENTATION - Turtle Bay Chief Executive Officer regarding Alliance of Redding Museum Project and Funding (C-070-250) Turtle Bay President/Chief Executive Officer Judy LaLouche provided an overview of the many projects currently underway at Turtle Bay. She explained that they are in the process of developing the Turtle Bay Exploration Park, a 300-acre park on the Sacramento River which will tell the story of the region through wildlife exhibits, gardens and trails, a unique pedestrian bridge and a large museum. Infrastructure work is currently underway on the Turtle Bay Sundial Pedestrian Bridge which will cross the Sacramento River and link the north and south campuses ofthe new Exploration Park. She related that construction crews are working hard to meet the ambitious construction schedule for project completion in Winter 2002-2003 when the completed park will open. Ms. LaLouche also pointed out that constructionjobs for the projects underway within the Park are being filled by the local labor force. She described the many educational and cultural opportunities provided by Turtle Bay which are available to the local community and to the more than seven million tourists which pass through Redding every year. Ms. LaLouche described the numerous marketing campaigns utilized to promote the Park and Museum, with ads appearing in magazines featuring the many attractions and amenities of the area. She pointed out that representatives from the American Automobile Association (AAA) participated in an on-site tour of the museum complex and plan to prominently feature the Park in their book She applauded the strong support the Museum has received from the hotel/motel association, as well as the community's generosity in funding efforts. Ms. LaLouche highlighted Turtle Bay's crusade to create and provide cultural and educational programs for children who need a safe environment in which to learn, and indicated that Turtle Bay serves approximately 30,000 school children each year on site and through outreach programs. Mayor McGeorge commended Ms. LaLouche and her staff for their accomplishments and continuing efforts to promote tourism and educational opportunities in Redding through the Turtle Bay Museum Complex and other recreational amenities. Ms. LaLouche thanked Council for the opportunity to appear and make her presentation. I City Manager Warren pointed out that Summer 2002 will see the completion of some long awaited projects in Redding such as the opening the Aquatics Center and the Sports Complex, followed by the Turtle Bay Pedestrian Bridge in Winter 2002-2003. SPECIAL ELECTION - Annexation AN-I-00, Abernathy Lane (A-150-260 & E-070-1 00) Development Services Director Hamilton reviewed the Report to City Council dated April 3, 2001, incorporated herein by reference, regarding Annexation AN-I-00, Abernathy Lane. Mr. Hamilton recalled that on December 5, 2000, Council conducted a protest hearing to determine the level of protest to the proposed annexation of 101 acres of property bounded by Tarmac Road on the south, Abernathy Lane on the east, and Viking Way on the north. He explained that during the hearing, it was determined that a sufficient level of protest existed among the 27 registered voters in the area which would force an election in 05/01/2001 106 accordance with the Local Agency Formation Commission (LAFCO) law. Mr. Hamilton added that against the City's objections, LAFCO expanded the original annexation area by approximately two-thirds - an action which substantially diminished voters' support. It is the recommendation of staff that Council direct staff to schedule a special election and prepare the appropriate resolutions. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall finding that the percentage of valid written protest is between 25 percent and 50 percent of the registered voters in the area and directing staff to schedul(( a special election for September 11,2001; and adopting Resolution No. 2001-83, a resolution of the City Council of the City of Redding ordering territory designated as "Annexation 1-00, Abernathy Lane" annexed to the City of Redding subject to confirmation by the registered voters. The Vote: I AYES: NOES: ABSTAIN: ABSENT: Council Members: Cibula, Pohlmeyer, Stegall and McGeorge Council Members: None Council Members: None Council Members: Kight Resolution No. 2001-83 is on file in the Office of the City Clerk. MONTHL Y FINANCIAL REPORT - Electric Utility (B-130-070) Electric Utility Director Feider reviewed the Report to City Council dated April 23, 2001,incorporated herein by reference, regarding the Electric Utility's Monthly Financial Report for March 2001. He reported that retail power sales revenue is 3.8%, or $2,128,733 below projection, and wholesale power sales to date are 846.2% or $117,129,585 above projection. Operating revenue after energy costs is 149.8%, or $40,828,646 above projection, with the total cost of electricity through March 2001 of$74,776,517, or 173.8% above projections. He indicated that the Utility's earnings before interest, depreciation, and amortization were at 235.4%, or $42,226,397, above plan, and the current outstanding balance for the Debt Reduction Program is $82.8 million. I Mr. Feider explained that it is expected that the energy crisis will accelerate this summer, with early predictions calling for 30 to 40 days of rolling blackouts throughout the state this year. While Redding Electric Utility's (REU) future is somewhat brighter with no expected blackouts, Mr. Feider reported that the City will continue to encourage conservation among users. On a more positive note, he indicated that REU will be able to supply City residents' demands, and it is expected that the Electric Utility surcharge will be retired next year. It is the recommendation of staff that the City Council approve the Electric Utility's Monthly Financial Report for March 2001. MOTION: Made by Council Member Cibula, seconded by Council Member Pohlmeyer, accepting the Monthly Financial Report for March 2001. The Vote: Unanimous Ayes. PUBLIC BENEFITS PROGRAM UPDATE - Expansion of Energy Efficiency Program (E-090-100) Electric Group Manager Keener, provided an overview of the Report to City Council dated April 23, 2001, incorporated herein by reference, regarding the Public Benefits Program (PBP) update and expansion of Energy Efficiency Programs. Mr. Keener explained that the enhanced PBP's focus on weatherization and energy-efficient modifications to existing residences. He advised that modem technologies and energy-saving measures are proving to be cost-effective ways for customers to save energy and help reduce peak demand. These efforts, boasting a 150% to 200% success rate, will not only benefit the citizens of Redding, but may also assist efforts throughout the state in coming months. Mr. Keener related that state law, driven by deregulation of California's electric utility industry, requires private and publicly-owned electric utilities to establish and implement specific PBP's through January 1,2012, in the following four categories: (1) Demand-side Management/Efficiency (DSM); (2) Research, Development and Demonstration (RD&D) of new electric technologies; (3) I 05/01/2001 107 I Renewable Energy Resource Development; and (4) Low-Income Assistance. While REU has been providing PBP-related programs to consumers for many years, in 1998, these programs were enhanced to comply with state requirements, and PBP-related spending has increased each year in order to maintain compliance. Mr. Keener advised that REU's amended PBP budget for fiscal year 2002 of approximately $1.7 million is almost completely encumbered for ongoing projects and previously authorized programs. In order to begin immediate implementation of the proposed fiscal year 2002-2003 PBP budget, REU will require preliminary authorization from Council to advance the development of the proposed efficiency improvements and peak load reduction programs. It is the recommendation of staff that the City Council accept the report on the condition and value of the City's Public Benefits Programs, and authorize continued development and implementation of projects and programs designed to benefit the community as proposed in REU's budget request for fiscal year 2002-03. In response to Council Member Cibula, Mr. Keener clarified that staffis requesting approval of the amount of funds expended on these types of programs, and assured him that staffwill continue to fine tune the figures. He further related that REU works closely with Economic Development Director Mitchell in contacting new and existing businesses alike with special emphasis placed on those businesses located in the Downtown Mall. He explained that REU staff makes an assessment of the business and then recommends more efficient, cost -saving energy solutions. Mr. Keener invited everyone to attend REU' s Energy Fair to be held May 12,2001, featuring many new technologies and ideas for energy conservation. I Electric Utility Director Feider emphasized that the result of the PBP's is economic benefits to the customer and energy conservation. These factors warrant over-spending the state mandate on these programs. REU is requesting Council's preliminary approval of the PBP expansion subject to modification of the budget. Franks Male, co-founder of Energy Conservative Resource urged the City Council to approve staffs recommendation, opining that PBP's will continue to have a significant impact on energy conservation because they are user-friendly, and they are proven to be effective in achieving the objective. MOTION: Made by Council Member Cibula, seconded by Council Member Pohlmeyer, accepting the update on the condition and value of Redding' s Public Benefits Program, and authorizing expansion of Energy Efficiency Programs as proposed in Redding Electric Utility's budget request for fiscal year 2002-03 in an additional amount of $500,000. The Vote: Unanimous Ayes. I RESOLUTION - Approving Additional Funds for Acceleration of Generation Unit No.5 and Preliminary Planning Work for Unit No.6 Combustion Turbine Generator, Amendment No.1 to Contract No. C-3808 with ALSTOM Power, Inc. (B-130-070 & E-120-150-675) Electric Utility Director Feider reviewed the Report to City Council dated April 24, 2001, incorporated herein by reference, regarding adoption of a resolution approving additional funds for acceleration of Generator Unit No.5, and preliminary planning work for Unit No. 6. Mr. Feider explained that staff began exploring the potential for an earlier commercial start date for acceleration of Generation Unit No.5 at the Redding Power Plant (RPP) due to recent developments in the energy industry such as the Pacific Gas & Electric (PG&E) bankruptcy, concerns over the impact of a possible drought year on hydroelectric generation, as well as the state's ongoing energy crisis. Initial discussions with ALSTOM Power, Inc. (ALSTOM) regarding an advanced commercial start date for Generation Unit No.5, indicated that by accelerating engineering, shop fabrication, and the shipping schedule they could advance the start date from June 26, 2002, to June 1, 2002, at a cost of $825,400 (including a 1 0% contingency). To further accelerate the schedule and advance the start date from June 1,2002, to May 15,2002, ALSTOM could increase the scheduled labor hours for a not-to-exceed cost of $561,000 if wholesale electric market prices warrant additional 05/0112001 108 acceleration. Mr. Feider pointed out that in order for ALSTOM to meet the advance start dates, Council must make the decision to go forward by May 2, 2001, because engineering and fabrication efforts are currently underway. Mr. Feider advised that accelerating Unit No. 5 will provide Redding with additional cost-effective electric generation at a time when it is projected that California will continue experiencing severe energy shortages and rolling blackouts. Mr. Feider also related that staff is requesting City Council's authorization to pursue the feasibility of adding a second ALSTOM generation unit at RPP and to seek additional consulting services if needed at a cost not to exceed $50,000. Initial exploration of adding a second unit at RPP indicated that it is within the scope of ongoing power market development, and staff will begin evaluating cost and related project development information from ALSTOM. When the initial work is completed, fiscal impacts and additional information on a second unit would be detailed in a report to Council at a future meeting. I It is the recommendation of staff that the City Council approve a two-phase acceleration of the commercial start date for Generator Unit No.5 at the Redding Power Plant and approve the initial expenditure of$825,000 to accelerate the project's commercial operation date from June 26, 2002, to June I, 2002, due to increasing wholesale power costs. It is further recommended that the City Council authorize the City Manager to approve expenditure of up to $561,000 for an additional acceleration to commercial operation beginning May 15, 2002, if wholesale electric market prices warrant additional acceleration. It is further recommended that Council authorize staff to hire a consultant, if needed, at a cost not to exceed $50,000, to assist with the feasibility study of adding a second generator unit at RPP. Council Member Cibula indicated support for the concept but wanted assurance that project quality would not be compromised. Mr. Feider responded that quality is foremost on this project, and ALSTOM has assured City staff that accelerating the schedule will not impact the work quality or materials. I Mr. Wingate advised that the offer for acceleration was received from ALSTOM, and the staff has prepared a letter, for signature by the Mayor to accept that offer. Mr. Wingate indicated that he has reviewed the information and the letter and he is confident that the documentation is in order. MOTION: Made by Council Member Po him eyer, seconded by Council Member Cibula adopting Resolution No. 2001-84, a resolution of the City Council of the City of Redding approving and adopting the 93Td amendment to City budget resolution No. 99-93, appropriating an additional $1,386,000 for a two-phase acceleration of the contract with ALSTOM Power, Inc. for Generator Unit #5, and preliminary planning work not to exceed $50,000 for Unit #6 at the Redding Power Plant, for fiscal year 2000-01. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members: Cibula, Pohlmeyer, Stegall and McGeorge Council Members: None Council Members: None Council Members: Kight Resolution No. 2001-84 is on file in the Office of the City Clerk LEASE AGREEMENT - Senior Citizens of Shasta County Inc., for Use of Senior Citizens Hall (C-070-100 & C-050-700) Community Services Director Niemer summarized the Report to City Council dated April 23, 2001, incorporated herein by reference, regarding staffs request for City Council direction regarding a lease agreement with Senior Citizens of Shasta County, Inc. (SCSC) for use of the Senior Citizen's Hall (Hall). Ms. Niemer explained that in February of 1971, the Redding Soroptimist Club donated a building (known as the Senior Citizens Hall) and the land on which it was situated, located at 2290 Benton Drive, to the City of Redding. The Official Dedication and Conveyance documents associated with the gift stipulates that, "priority of use of said structure shall be reserved to the Senior Citizens Club of Shasta I 05/01/2001 109 I County, a non-profit corporation....." The document also states, "that the City of Redding shall hereafter maintain the property on good order and condition." Ms. Niemer related that currently the SCSC has almost exclusive use of the facility and assumes responsibility for ongoing maintenance expenses. In addition, the group has made substantial improvements to the building and is currently in the preliminary stages of financing an energy retrofit project to make the facility more energy efficient. She reported that the City Attorney's office reviewed the long standing arrangement between the City and SCSC, and has determined that this landlord/tenant relationship should be formalized in a written lease agreement in order to protect the rights of both parties. In light of this decision, and in order to comply with City Council Policy #1901 and state law, Ms Niemer and staff have been working with SCSC members to formalize use of the Hall with a lease agreement. However, the term of the lease (staff has offered a 35-year lease and SCSC has countered with a 55- year lease term), remains an outstanding issue which requires resolution. It is recommended that Council authorize staff to pursue a lease agreement with SCSC which will allow them to continue offering programs and activities at the Hall, and direct staff with respect to the lease term. SCSC members Bill Seiffert, John Schlat and Sylvia Sheidell, recalled that the City and SCSC have enjoyed a successful relationship for many years, and expressed concern regarding the possibility of losing the Hall as a meeting place for many seniors who have come to count on it for recreation and a large part of their social lives. Mr. Schlat pointed out that while the City has failed to paint the Hall as previously agreed, SCSC has saved the City a great deal of money over the years by funding repairs and improvements without assistance. They expressed a desire for a 55-year lease, or longer, to ensure the Hall's continued operation for years to come. Council Member Stegall commented that she could see no problem in agreeing to a 55-year lease term. I Council Member Cibula expressed concern regarding long-term leases, but pointed out the unique circumstances of a long-standing relationship with SCSC, the excellent job they have done in managing the Hall, and the fact that the Conveyance from the Soroptimist was very clear that this building is to be used by SCSC. Mr. Cibula indicated a preference for a 55- year lease term. City Attorney Wingate opined that the City recognizes this arrangement to be more a partnership than a lessor/lessee situation, and indicated that working together in a cooperative spirit, and addressing issues as they may arise, will ensure the success of this venture. In response to earlier comments by sese members, Mayor McGeorge opined that the City should proceed with painting the Hall as previously agreed, and he also endorsed a 55-year lease. MOTION: Made by Council Member Stegall, seconded by Council Member {::ibula directing' staff to finalize a written lease agreement with'the Senior. Citizens,'~i Shasta County, Inc. for use of the Senior Citizens Hall located at 2290 Benton Drive for a 55-year term. The Vote: Unanimous Ayes. I MONTHL Y FINANCIAL REPORT - General Fund (B-130-070) Administrative Services Director Bachman provided a brief overview of the Report to City Council dated April 20, 2001, incorporated herein by reference, regarding the General Fund Monthly Financial Report for March 2001. He reported that total revenue to date is $32.3 million or $2,448,806 (8.1 %) above staffs cash flow estimate, and expenditures at the end of March 2001 (excluding encumbrances), totaled $31,566,833 or $2,229,633 (6.6 percent) below staffs original cash flow projection. It is recommended that the City Council accept the Monthly Financial Report for Marcy 2001. 05/01/2001 110 MOTION: Made by Council Member Cibula, seconded by Council Member Pohlmeyer, accepting the General Fund Monthly Financial Report for March 2001. The Vote: Unanimous Ayes. ADJOURNMENT There being no further business, at the hour of 8:52 p.m., Mayor McGeorge declared the I meeting adjourned. APPROVED ATTEST: ~~ City Clerk (~ ./ I I 05/01/2001