HomeMy WebLinkAboutMinutes - City Council - 2001-06-19
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City Council, Regular Meeting'
Civic Center Council Chambers
777 Cypress A venue,
Redding, California
June 19,2001, 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Lieutenant John Pohlmeyer of the United
States Army.
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The Invocation was offered by Reverend James Wilson, Praynorthstate Church.
The meeting was called to order by Mayor McGeorge with the following Council Members
present: Kight, Pohlmeyer, and Stegall. Council Member Cibula was absent.
Also present were Assistant City Manager Perry, Deputy City Manager Starman, City
Attorney Wingate, Development Services Director Hamilton, City Clerk Strohmayer, and
Executive Secretary Stribley.
PRESENTATION OF U.S. POSTAL SERVICE AWARD
(A-050-250-030)
Postmaster Diana Barela presented a U.S. Postal Service Award to City of Redding Building
Technician Trisha Vigil in recognition of her valued expertise providing address and
mapping information and consistent performance in giving ready assistance to postal
workers.
PRESENT A nON OF APPRECIATION PLAQUES
(B-080-128 & B080-300)
Mayor McGeorge presented Plaques of Appreciation to Maureen Gaynor for her dedicated
service on the Planning Commission and to Terry Quibell and Ken Seamans for their valued
service as Community Services Advisory Commissioners.
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CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Minutes - Regular Meeting of May I, 200 I, and Special Meeting of June 8,
2001.
Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 23, check numbers 289887 through
290419 inclusive, in the amount of$6,391,595.01, for the period of June 5, 2001, through
June 14, 2001; and Payroll Register No. 25, electronic deposit transaction numbers 92353
through 92972 and check numbers 481047 through 481363 inclusive, in the amount of
$1,824,881.19, for the period of May 27, 2001, through June 9, 2001, be approved.
TOTAL $8,216,476.20 .
Sales Agreement - City-owned surplus property located at 24:25 Sonoma Street
(C-070-200)
It is the recommendation of the Assistant City Manager that staff be directed to prepare a
Sales Agreement for City-owned surplus property located at 2425 Sonoma Street (APN 108-
440-42) and authorize the Mayor to sign the Sales Agreement. Drs. Jory Kaplan, Robert del
Junco, and Navin Amin submitted a bid in the amount of $230,000 (the appraised value of
the property). Proceeds from the sale will be utilized to repay an internal loan for the Civic
Center.
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Joint Use Agreement - Redding School District
(E-060-500)
It is the recommendation of the Deputy City Manager that the City Council approve the Joint
Use Agreement with the Redding School District, which is a requirement for the District to
qualify for additional funds from the State of California, for construction of a multipurpose
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facility at Sequoia Middle School; and authorize the City Manager to execute the Agreement
which will also enable the City to utilize the facility during non-school hours.
The Redding Redevelopment Agency intends to allocate $1.5 million of bond proceeds to
the construction cost of the multipurpose facility.
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Letter of Agreement - Charter Communications - Cable Franchise Agreement (C-2278)
(T -040-050)
It is the recommendation of the Support Services Director that the City Council authorize the
Mayor to sign a Letter of Agreement extending the current Cable Franchise Agreement with
Charter Communications on a month-to-month basis beginning September 2, 2001, (the
expiration date ofthe current agreement) until such time as staff has successfully negotiated,
and the City Council adopts, a franchise renewal.
Property Line Adjustment - 5050 Bechelli Lane (aka Sunnyhill Lane), Hilton Garden Inn
(C-070-200)
It is the recommendation of the Development Services Director that the City Council
authorize Property-line Adjustment No. 1-01 between the Redding Rancheria Economic
Development Corporation (RREDCO) and the City of Redding at 5050 Bechelli Lane (aka
Sunny Hill Lane) for the Hilton Garden Inn Hotel Project. The adjustment will result in an
imbalance of .27 acres, due to road realignment, and will be offset by $232,969 of on- and
off-site improvements as well as landscape improvements performed by RREDCO.
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Resolution - Summary Vacation of street right-of-way at 5050 Bechelli Lane by Redding
Rancheria Economic Development Corporation (RREDCO)
(A-OIO-IOO)
It is the recommendation of the Development Services Director that Resolution No. 2001-96
be adopted, a resolution of the City Council of the City of Redding summarily vacating a
portion of the Bechelli Lane (AKA Sunnyhill Lane) street right-of-way generally located
adjacent to 5050 and 5015 Bechelli Lane and Interstate 5 (A-1-01), subject to retaining a
public service easement over the area for existing utilities and recording the property line
adjustment for the Hilton Garden Inn Hotel project prior to recording the summary vacation.
Agreement - Extension of Contract No. C-1315 with Orcom Solutions, Inc.
(U-500-850)
It is the recommendation of the Electric Utility Director that the City Council authorize the
City Manager to execute a contract with Orcom Solutions, Inc. extending services for
continued Enterprise Customer Information System (E-CIS) maintenance and software
support in the amount of $79,800 for fiscal year 2001-02.
Resolution - Approving Lease finance agreement for refurbishment of Convention Center
seating
(D-050-400-100 & C-050-050)
It is the recommendation of the Community Services Director that Resolution No. 2001-97
be adopted, a resolution of the City Council of the City of Redding authorizing the execution
by the Mayor or City Manager and delivery of a Lease with Option to Purchase with
Baystone Financial Group, agent for Kansas State Bank of Manhattan, and authorizing
certain actions in connection therewith to purchase 2,082 theater-style replacement seats at
the Redding Convention Center, not to exceed, $87,000.
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Resolution - Appropriating funds for unanticipated overtime costs in the Fire Department
(B-130-070 & A-050-140)
It is the recommendation of the Fire Chief that Resolution No. 2001-98 be adopted, a
resolution of the City Council of the City of Redding approving and adopting the 99th
Amendment to City Budget Resolution No. 99-93, appropriating $176,000 to augment the
Fire Department Personnel Budget for fiscal year 2000-01 to cover unanticipated overtime
and related costs in excess of the existing budget.
Resolution - Cost-of-living increases and other changes to the salary plans for unrepresented
employees
(P-100-320)
It is the recommendation of the Administrative Services Director that Resolution No.
2001-99 be adopted, a resolution of the City Council of the City of Redding amending the
Executive Management Pay-for-Performance Salary Plan, the Non-Exempt Employee
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Schedule classifications and hourly wage rates, and the Schedule of Part-Time Employee
classifications and wage rates/ranges for City of Redding unrepresented employees as
follows: approving a cost-of-living adjustment in the amount on percent for unrepresented
employees, effective June 24, 2001; deleting from the salary schedule job classifications of
Project Coordinator, Budget Services Officer, and Power Plant Engineer; and adding to the
salary schedule classifications of Geographic Information Systems Manager, Purchasing
Officer, Reprographics Manager, Safety and Environmental Compliance Coordinator, and
Assistant Finance Officer; and directing staff to move forward to provide CalPERS
retirement benefit Employer Paid Member Contribution (EPMC) for unrepresented
employees.
EPMC is a retirement enhancement offered by CalPERS that adds the employee's share of
the retirement cost (currently 7 percent) to base compensation for retirement purposes.
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Agreement - Liability Claims Administration Agreement (C-2011) with Gregory B. Bragg
& Associates
(R-l 00-550-1 00)
It is the recommendation of the Administrative Services Director that Council approve the
two-year amendment to the Liability Services Agreement with Gregory B. Bragg Associates,
Inc. (Bragg), effective July 1,2001, through June 30, 2003, to continue administering the
City's liability claims program. Claims under $500 will be charged at a rate of$37.75 per
hour the first year, to increase thereafter with the Consumer Price Index and claims over
$500 will be charged at a rate of$45.50 per hour the first year to increase thereafter with the
Consumer Price Index.
Notice of Completion - Bid Schedule No. 3350 - Traffic Signal Installation at Lake
Boulevard and Boulder Creek Drive
(B-050-020 & T -080-700)
It is the recommendation of the Public Works Director that Bid Schedule No. 3350 (Job No.
2091), traffic signal installation at Lake Boulevard and Boulder Creek Drive, awarded to H
& H Electric of Redding, be accepted as satisfactorily completed, and the City Clerk be
authorized to file a Notice of Completion. The final contract price is $170,234.36. The
complete cost of the project including construction, engineering, inspection, and contract
administration is $193,734.87. The City will bill Shasta County for one-half of the
construction costs, including oversight, pursuant to the Agreement between the City and
County for signal costs.
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Resolution - Accepting streets for maintenance and operation and accepting improvements;
Final Map - Chum Creek Meadows Subdivision Unit 8, developed by Jerry Nash
(S-100-088 & S-070-230)
It is the recommendation of the Public Works Director that Resolution No. 2001-100 be
adopted, a resolution of the City Council of the City of Redding accepting for maintenance
and operation Columbine Drive in Unit 8 of the Chum Creek Meadows Subdivision located
at the intersection of Victor A venue and Alta Sega Drive.
It is further recommended that the improvements in the Chum Creek Meadows Subdivision
Unit 8, be accepted as satisfactorily completed and the City Council approve the final map,
and instruct the City Clerk to file the map with the Shasta County Recorder.
Amendment to Agreement - Kennedy/Jenks Contract No. C-1728 for the Eastside Parallel
Sewer Interceptor Project
(W -020-610)
It is the recommendation of the Public Works Director that the City Council approve the
Second Amendment to Contract No. C-I728 with Kennedy/Jenks for the Parallel Eastside
Sewer Interceptor Project in the amount of $74,000 to provide construction testing and
environmental mitigation monitoring services for the project.
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Resolution - Accepting streets and improvements for Country Heights Subdivision Unit No.
15, Phase 3 (S-8-94)
(S-100-108 & S-070-230)
It is the recommendation of the Public Works Director that Resolution No.200 1- 101 be
adopted, a resolution of the City Council of the City of Redding accepting for maintenance
and operation, Sunglow Drive and Sounding Brook Court in Unit 15, Phase 3, of the Country
Heights Subdivision located at the west end of Sunglow Drive.
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It is further recommended that the improvements in the Country Heights Subdivision, Unit
15, Phase 3 be accepted as satisfactorily completed and the City Clerk instructed to return
the securities to the developer, Signature Northwest.
MOTION: Made by Council Member Kight, seconded by Council Member Pohlmeyer,
that all the foregoing items on the Consent Calendar be approved and adopted as
recommended. The Vote:
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AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members - Pohlmeyer, Stegall, Kight, and McGeorge
Council Members - None
Council Members - Cibula
Council Members - None
Resolution Numbers 2001-96, 2001-97, 2001-98, 2001-99, 2001-100, and 2001-101 are on
file in the Office of the City Clerk.
PUBLIC HEARING - Tentative Subdivision Map S-l 0-00, Shasta Hills Estates Subdivision
Phase 2, Unit 1; and Rezoning Application RZ-5-00, property located west of Chum Creek
Road at its intersection with Palacio Drive and at the southern terminus of Volcano View
Trail and Golden Gate Trail, by Redwood Shasta Investors
(S-101-036 & L-01O-230)
The hour of7 :00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding
Tentative Subdivision Map S-10-00, Shasta Hills Estates Subdivision Phase 2, Unit 1 and
Rezoning Application RZ-5-00.
The following documents are on file in the office of the City Clerk:
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Affidavit of Mailing - Notice of Public Hearing
Affidavit of Publication - Notice of Public Hearing
City Clerk Strohmayer advised that no protests were received.
Development Services Director Hamilton summarized the request from Redwood Shasta
Investors to rezone approximately 12 acres of Shasta Hills Estates Subdivision, Phase 2, Unit
1, located west of Chum Creek Road at its intersection with Palacio Drive and at the
southern terminus of Volcano View Trail and Golden Gate Trail, from "U" Unclassified
District to "PD" Planned Development District, as well as approval of a Tentative
Subdivision Map application to subdivide the rezoned property into 48 single-family
residential lots anticipated to be a seniors gated community and will include expansion of a
privately owned park. He noted that a tentative map and Planned Development zoning was
approved in 1994 for Phase 2, but had since expired. He explained that Shasta Hills Estates
Subdivision Phase 1 is comprised of 127 single-family senior residences, a club house, a
trail, and a private park and the proposed use for Phase 2 would be consistent with the
current zoning of Phase 1.
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It is the recommendation ofthe Planning Commission and staffthat Council make findings
as required by the California Environmental Quality Act (CEQA) and adopt the Mitigated
Negative Declaration and Mitigated Monitoring Program prepared for Rezoning Application
(RZ-5-00) and Tentative Subdivision Map Application (S-l 0-00), that Council make findings
and approve Tentative Subdivision Map Application (S-10-00) for Shasta Hills Estates
Subdivision, Phase 2, Unit 1, subject to the conditions of approval, and approve Rezoning
Application (RZ-5-00) from "U" Unclassified District to "PD" Planned Development
District, and offer Ordinance No. 2285 for first reading, amending Section 18.06.020 of the
Redding Municipal Code relating to the rezoning of certain real property in the City of
Redding and waive the full reading.
Mayor McGeorge determined that there were no individuals present wishing to speak on the
issue and closed the public hearing.
Council Member Kight offered Ordinance No. 2285 for first reading, an ordinance of the
City Council ofthe City of Redding amending Section 18.06.020 of the Redding Municipal
Code relating to the rezoning of certain real property in the City of Redding (RZ-5-00).
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MOTION: Made by Council Member Kight, seconded by Council Member Pohlmeyer,
making findings as required by CEQA and adopting the Mitigated Negative Declaration and
Mitigation Monitoring Program; making findings and approving the Tentative Subdivision
Map Application S-lO-OO for Shasta Hills Estates Subdivision, Phase 2, Unit 1, subject to
the conditions of approval; approving the Rezoning Application RZ-5-00 from "u'
Unclassified District to "PD" Planned Development District; and that the full reading of
Ordinance No. 2285 be waived and the City Attorney be instructed to read the full title.
The Vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members - Pohlmeyer, Stegall, Kight, and McGeorge
Council Members - None
Council Members - Cibula
Council Members - None
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Ordinance No. 2285 is on file in the Office of the City Clerk.
APPOINTMENTS - Appointment to the Community Services Advisory Commission
(B-080-128)
MOTION: Made by Council Member Kight, seconded by Council Member Stegall,
appointing Shelly Kibler to serve an unexpired term on the Community Services Advisory
Commission to January 1, 2002. The Vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members - Pohlmeyer, Stegall, Kight, and McGeorge
Council Members - None
Council Members - Cibula
Council Members - None
CAPITAL IMPROVEMENT PROJECTS - Implementation of the new General Plan
(A-050-080 & G-03,O)
Development Services Director Hamilton presented an oral report regarding an update ofthe
General Plan. He advised that the update, required by State law, was the guiding force
behind many projects currently underway in the City. Mr. Hamilton related there would be
an additional update presented to the Planning Commission and City Council in late Fall
2001 or early Spring 2002. He pointed out that several components of the General Plan are
in place, such as the Parking Plan, the Downtown Specific Plan, and the Development Impact
Fee Program; other projects under development are the Parks and Trails Open Space
Management Plan, the Oasis Road Specific Plan, and the Infrastructure Master Plan which
relates to serving the community over the next 20 years.
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Mr. Hamilton explained that the Draft Zoning Ordinance would be a major project in the
coming months and will soon be available to the public, after review by the Technical
Advisory Committee. He added that the Draft will also be available via the Internet and for
purchase at the Permit Center, in addition to an E-mail link for public input and public
workshops commencing in August 2001. It is anticipated that the Planning Commission will
have the Draft for review toward the end of Sept ember, dependent upon the amount of public
input, and the updated Draft will then be presented to Council for adoption in November
2001. No action was required on this informational item.
RESOLUTION - Appropriating funds for Generating Unit No.5 at the Redding Power Plant;
AWARD OF BID - Bid Schedule No. 3463, Civil an4 Structural Infrastructure work; and
AWARD OF BID - Bid Schedule No. 3454, 115/B.8kV Switchyard Expansion work
(B-050-1 00/B-130-070/E-120-150-67 5)
Electric Distribution System Manager Russell recalled that in December of 2000, Council I
authorized construction of a combustion turbine generator, heat recovery steam generator
system, and ancillary systems at the Redding Power Plant at a cost of $40,600,000 in order
to ensure a reliable, cost-effective energy source for the City of Redding. The City then
contracted with ALSTOM Power, Inc. to furnish generating equipment and perform design
work for the Generating Unit No. 5 project infrastructure, excluding the switchyard
expanSIOn.
Mr. Russell advised in March 2001, Council approved the construction contract for site
preparation which was awarded to Ford Construction, Inc. ofLodi, California, in the amount
of $1,484,391.00, but due to unforeseen compaction problems at the site, the total
completion amounted to $1,632,391. He related that on May 1, 2001, Council authorized
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an additional $1,386,000 to accelerate the project completion date from June 26, 2002 to
June 1, 2002, with an option to further accelerate to May 15, 2002.
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, Mr. Russell continued that a single bid was received for Bid Schedule No. 3463, to provide
civil and structural infrastructure work, in the amount of $3,674,000 from Cal Electro, Inc.
of Redding which was $1,829,000 above the Engineer's Estimate provided by ALSTOM's
design engineer. In staff s opinion, the discrepancy is attributable to the following factors:
1) ALSTOM's engineer did not consider the limited availability of qualified contractors; 2)
greatly underestimated the project's difficulty as well as the short timeframe for construction;
3) did not consider the high penalties for late completion; and 4) did not include impacts of
the accelerated schedule such as overtime. Mr. Russell explained that staff performed due
diligence with regard to wide distribution of the bid proposal with only one response -
leading staff to the conclusion that rebidding the project would not produce a significant
change in results, but would adversely impact the completion time line as well as costs. He
add that staffhas reviewed Cal Electro's bid and determined that it is a responsive bid.
Mr. Russell advised that staff is requesting Council approval of additional funds in the
amount of$4,240,541 for the award of Bid Schedule No. 3463, to provide civil and structural
infrastructure work in the amount of$3,674,000 to Cal Electro, Inc. of Redding, $1.2 million
of which will be set aside as a contingency fund that hopefully will not be needed. The
increase is entirely attributable to project construction costs, although a portion of the
increase is for site work for a future Generating Unit No.6.
Mr. Russell cited problematic situations which could interrupt power to the citizens of
Redding. He believed it prudent to move forward with the construction of Unit No.5 as
soon as possible. He stressed that the City of Redding is responsible for various completions
within the project, and monetary penalties could be assessed in the event the City delayed
portions of the project causing ALSTOM to fail to meet the deadline.
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Mr. Russell related that once Unit No.5 is operational, it would increase the efficiency of the
existing power plant by 40%, create fuel savings estimated at approximately $700,000 per
month, and, optimistically, a net revenue potential of $750,000 per month.
It is the recommendation of staff that Bid Schedule No. 3463 (Job No. 9859-41), Civil and
Structural Infrastructure for Generating Unit No.5 at the Redding Power Plant be awarded
to Cal Electro, Inc., in the amount of $3,674,000.
It is further recommended that Bid Schedule No. 3454 (Job No. 4589-15), Redding Power
115/13.8vK Switchyard Expansion for Unit No.5 be awarded to Cal Electro, Inc., in the
amount of $972,000; and that Resolution No. 2001-102 be adopted, appropriating an
additional $4,240,541 for the Generator Unit No. 5 Project, and the City Manager be
authorized to approve project contract change orders, not to exceed total project funding of
$46,226,541.
Mayor McGeorge asked staff to comment on the recent Federal Energy Regulatory
Commission (FERC) decision and how it might affect the City's income in the future. Mr.
Russell responded that FERC has recently implemented "price mitigations" on wholesale
power costs, not a price cap, b~t complete details are not yet available. He pointed out that
the ruling would be in place through September 2002, but was confident that the City would
be competitive with market prices because the ruling was structured to extend to only those
units having the highest operating costs. Although there are formulas for determining the
price, Redding's units are more efficient by 20-25% than the average unit as set by the State.
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Council Member Stegall inquired about the State's innuendos regarding possible eminent
domain proceedings to take over municipal utility plants. Mr. Russell indicated that staff is
hopeful that the threat would not materialize and questioned the legality of the issue. City
Attorney Wingate interjected that he believed it was nothing more than rhetoric and advised
that the City was responding in kind, adding that with input favorable to municipal utilities
by other municipalities and by the media the issue would probably fade.
Council Member Kight expressed concern over the disparity in the engineer's estimate and
the bid, and asked if staff felt confident with estimates for other components of the project.
Mr. Russell replied that the public works contract for electrical work on the project has been
ramped up to a more realistic amount with sufficient contingencies for completion.
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Council Member Kight commented on the cost overrides and agreed that construction bids
currently being submitted reflect the above average economy in the construction market and
a noticeably restricted labor supply. In his view, the project is still viable and beneficial to
the City's endeavor to become self-reliant and did not favor prolonging the bidding process.
MOTION: Made by Council Member Kight, seconded by Council Member Pohlmeyer,
awarding Bid Schedule No. 3463 (Job No. 9859-41), Civil and Structural Infrastructure for
Generating Unit No.5 at the City of Redding Power Plant to Cal Electro, Inc., in the amount
of $3,674,000 and authorizing the Mayor to sign an agreement for same; and awarding Bid
Schedule No. 3454 (Job No. 4589-15), Redding Power 115/13.8vK Switchyard Expansion
for Unit No.5 to Cal Electro, Inc., in the amount of$972,000 and authorizing the Mayor to
sign an agreement for same; and adopting Resolution No. 2001-102, a resolution of the City
Council of the City of Redding approving and adopting the 98th amendment to City Budget
Resolution No. 99-93 appropriating an additional $4,240,541 for the Generator Unit No.5
Project; and authorizing the City Manager to approve project contract change orders for the
Generating Unit No.5 Project, not to exceed total project funding of$46,226,541. The Vote:
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AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members - Pohlmeyer, Stegall, Kight, and McGeorge
Council Members - None
Council Members - Cibula
Council Members - None
Resolution Number 2001-102 is on file in the Office of the City Clerk.
Mayor McGeorge expressed concern with fast-tracking projects and penalty clauses, which
lead to increased costs and he urged avoiding "fast tracking" on future projects.
ADJOURNMENT
There being no further business, at the hour of7:42 p.m., Mayor McGeorge declared the m
meeting adjourned.
APPROVED
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ATTEST:
~,t!1~fj
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06/19/2001