HomeMy WebLinkAboutMinutes - City Council - 2001-07-03
147
City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress Avenue,
~edding, California
July 3,2001, 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Vi Klaseen.
I' The Invocation was offered by Herb Pursley of Youth for Christ.
The meeting was called to order by Vice Mayor Kight with the following Council Members
present: Cibula, Pohlmeyer, and Stegall. Mayor McGeorge was absent.
Also present were City Manager Warren, Assistant City Manager Perry, Deputy City
Manager Starman, Assistant City Attorney Tranberg, Development Services Director
Hamilton, Community Services Director Niemer, City Clerk Strohmayer, Assistant City
Clerk Sherman, and Executive Secretary Stribley.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Minutes - Regular Meeting of May 15,2001; and Special Meetings of June 5,
2001, and June 19,2001
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Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 24, check numbers 290420 through
290954 inclusive, in the amount of$2,739,215.10, for the period ofJune 19,2001, through
June 28, 2001; and Payroll Register No. 26, electronic deposit transaction numbers 92984
through 93598 and check numbers 481410 through 481709 inclusive, in the amount of
$1,664,665.51, for the period of June 10,2001, through June 23,2001, be approved.
TOTAL $4,403,880.61
Treasurer's Report for the Month of May 2001
(A-050-100-600)
Total Treasurer's Accountability
$127,987,127.95
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities
$175,109,131.10
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 May 2001 be accepted.
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ORDINANCE NO. 2285 - Rezoning Application, RZ-5-00, by Redwood Shasta Investors
(Shasta Hills Estates Subdivision, Phase 2, Unit 1)
(L-O 1 0-230/S-1 0 1-036)
It is recommended that Ordinance No. 2285 be adopted, an ordinance of the City Council of
the 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 located west of Chum Creek
Road at its intersection with Palacio Drive and at the southern terminus of V olcano View
Trail and Golden Gate Trail in the Shasta Hills Estates Subdivision, Phase 2, Unit 1, from
"U" Unclassified District to "PD" Planned Development District, requested by Redwood
Shasta Investors.
Oppose Senate Bill 910 (SB 910) - General Plan Housing Element
(L-040-300)
It is the recommendation of the City Manager that the City of Redding oppose Senate
Bill 910 establishing a legal "presumption of nonvalidity" and allows the courts to levy a
penalty up to $1.5 million per city or county ifthe Department of Housing and Community
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148
Development for the State of California determines that it does not have a Housing Element
which substantially complies with State law. The Bill also allows the State Controller to
impound local gas tax funds, and authorizes a court to award attorney fees and related legal
costs to plaintiffs.
Oppose Senate Bill 975 - "Prevailing Wage" for Public Works Projects
(L-040-300)
It is the recommendation of the City Manager that the City of Redding oppose Senate Bill
975 (SB 975) which codifies and may expand several administrative decisions made by the
State of California Department of Industrial Relations regarding "prevailing wages" for
public works projects. SB 975 could preclude a successful court challenge relative to the
administrative decisions and financially impact a number of City projects and programs, such
as the Economic Development Program.
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Council Member Cibula preferred an amendment to SB 975 rather than opposition.
The Vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members - Pohlmeyer, Stegall, and Kight
Council Members - Cibula
Council Members - McGeorge
Council Members - None
Surplus Property - Airpark Office Park Covenants, Conditions, and Restrictions
(C-070)
It is the recommendation of the Assistant City Manager that the Mayor be authorized to
execute the Airpark Office Park Covenants, Conditions, and Restrictions (CC&Rs) - Sonoma
Street, for two parcels of City-owned surplus property located at 2420 and 2425 Sonoma
Street, as drafted, and authorize the recordation of same as part of the sale of these two
properties, changing the use of these parcels from "Residential" to "Office" as agreed by the
City and Sonoma Street property owners.
Set Public Hearing - Modifications to the Solid Waste operating policies and fees for
servIces
(S-020-500)
It is the recommendation of the Development Services Director that the City Council set a
public hearing for July 17, 2001, to consider modifications to the Solid Waste operating
polices and fees for services. The proposal will not change the collection fee schedule
adopted by the City Council in 1999, but pertains to issues regarding contamination,
materials banned from the landfill, and transfer station costs, inclusive of a policy regarding
the contamination of Waste Wheelers for green waste and recyclables; fall leaf collection
program; contamination of dumpsters and drop-boxes; scrap electronics; unscreened mulch
sales; duplicate receipts; and after-hour or emergency service.
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Award of Bid - Bid Schedule No. 3421, Security services at various City locations; and
Security Service Agreement - North State Security
(B-050-100)
It is the recommendation of the Support Services Director that Bid Schedule No. 3421,
providing security services at various City locations be awarded to North State Security in
the amount of $56,283.60 for the period of July I, 2001, through December 31, 2001, and
$118,140 for the period of January 1, 2002, through December 31, 2002.
It is further recommended that the Mayor be authorized to sign the Security Services
Agreement with North State Security to provide security services to City Hall, the
Corporation Yard, Redding Area Bus Authority intermodal passenger transfer facility and
parking lot, Solid Waste Transfer/Recycling facility, Benton Airpark, and Enterprise
Community Park at the above-described costs and terms.
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Security Service Agreement - North State Security - i5 Is #- Jt! 2 2.- ~ J~
(B-050-IOO & A-090-IOO) rl3i2 L.- ~
It is the recommendation ofthe Support Services Director that the City Council appr8ve the
Agreement with North State Security to provide security services at the Redding Municipal
Airport for a term of three (3) years from July 1,2001, through June 30, 2004, in the amount
of $63,772.80 per year, with an option for the City to extend the Agreement for three
consecutive one-year extensions.
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149
Electric Utility's Monthly Financial Report for May 2001
(B-130-070)
It is the recommendation of the Electric Utility Director that the City Council approve the
Electric Utility's Monthly Financial Report for May 2001. Retail power sales revenue is
4.0%, or $2,653,090 below projections and wholesale power sales to date are 1,028.6% or
$147,408,002 above projections. Operating revenue after energy costs is 177.5%, or
$54,926,403 above projections. The total cost of electricity through May 2001 is
$90,919,353 or 179.8% above projections. The Utility's earnings before interest,
depreciation, and amortization were at 290.4%, or $56,808,904 above plan. The current
outstanding balance for the Debt Reduction Program is $76.3 million.
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Notice of Completion - Bid Schedule No. 3441, Site Preparation of Generating Unit No.5
at the Redding Power Plant
(B-050-020 & E-120-150-675)
It is the recommendation of the Electric Utility Director that Bid Schedule No. 3441 (Job No.
9859-31), for Site Preparation of Generating Unit No.5 at the Redding Power Plant, awarded
to Ford Construction, Inc., be accepted as substantially completed, and the City Clerk be
authorized to file a Notice of Completion. The final contract price is $1,632,391.
Resolution - Recognizing July 2001 as "Recreation and Parks Month"
(A-050-060-600)
It is recommendation of the Community Services Director that Resolution No. 2001-105 be
adopted, a resolution of the City Council of the City of Redding recognizing July 2001 as
"Recreation and Parks Month" in the City of Redding.
Resolution - Proclaiming August 7,2001, as "National Night Out"
(A-050-060-600 & P-150-150)
It is the recommendation of the Chief of Police that Resolution No. 2001-106 be adopted,
a resolution of the City Council of the City of Redding supporting crime and drug prevention
efforts and Police Community Partnerships in Redding and proclaiming Tuesday, August 7,
2001, as "National Night Out".
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Monthly Financial Report - General Fund
(B-130-070)
It is the recommendation of the Administrative Services Director that the City Council accept
the General Fund's Monthly Financial Report for May 2001. Total revenue to date is $40.6
million or $3,412,830 (9.1 %) above staffs original cash flow projection. Expenditures to
date, excluding encumbrances, total $37,884,909 or $2,806, 1 04 (6.9%) below staff s original
cash flow projection. Encumbrances total $1,735,938.
Award of Bid - Bid Schedule No. 3461, Redding Civic Center Signature Fountain
(B-050-020 & C-050-025)
It is the recommendation of the Public Works Director that Bid Schedule No. 3461 (Job No.
9411), Redding Civic Center Signature Fountain be awarded to Renew-A-Line Construction,
Inc. in the amount of $400,000 including Additive Alternative No.1, to furnish and install
landscape lighting; Additive Alternative No.2 to furnish and install landscape irrigation;
Additive Alternative No.3 for landscape installation.
It is further recommended that $36,500 be approved for the cost of engineering and
inspection fees and $40,000 for a construction contingency fund for a total allocation of
$476,500.
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Reimbursement Agreement - Safeway, Inc. for overlay on Chum Creek Road
(A-070-300 & 1-010-390)
It is the recommendation of the Public Works Director that the City Council approve entering
into a reimbursement agreement with Safeway, Inc., in an amount not-to-exceed $40,000,
to cover the cost of an asphalt concrete overlay on Chum Creek Road and Cypress Avenue
to be performed by Safeway as part of the required road and utility improvements, in
conjunction with road widening and pavement marking modifications. By reimbursing
Safeway to perform the work, the project will be implemented before the City's anticipated
project date of2002-2003, and the cost of bidding the work, engineering, and re-striping that
portion of Chum Creek Road will be avoided.
07/03/2001
150
Council Member Cibula abstained citing conflict of interest due to family holdings in the
area.
The Vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members - Pohlmeyer, Stegall, and Kight
Council Members - None
Council Members - McGeorge
Council Members - Cibula
Notice of Completion - Bid Schedule No. 3379, Construction of Well Nos. 12 and 13
(B-050-020 & W-030-750)
It is the recommendation of the Public Works Director that Bid Schedule No. 3379 (Job No.
9606-39), Construction of Well Nos. 12 and 13 awarded to Nor-Cal Pumps of Yuba City, be
accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of
Completion. The final contract price is $279,834.50.
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MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer,
that all the foregoing items on the Consent Calendar be approved and adopted as
recommended, with the exception of those items approved by a separate vote as indicated
above. The Vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members - Pohlmeyer, Cibula, Stegall, and Kight
Council Members - None
Council Members - McGeorge
Council Members - None
Resolution Numbers 2001-105,2001-106, and Ordinance No. 2285 are on file in the Office
of the City Clerk.
JOINT PUBLIC HEARING OF THE CITY COUNCIL AND REDDING
REDEVELOPMENT AGENCY - re use of redevelopment pass-through funds by the
Redding School District for various capital outlay projects
At the hour of 7:00 p.m., Chair Kight convened the Special Meeting of the Redding
Redevelopment Agency for a joint meeting with the Redding City Council.
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RESOLUTION - Issuance of Lease Revenue Bonds; and
RESOLUTION - Regarding findings and issuance of Lease Revenue Bonds and approval of
certain documents
(R-030-065)
The hour of 7:00 p.m. having arrived, Vice Mayor/Chair Kight opened the joint public
hearing regarding findings and issuance of Lease Revenue Bonds and approval of certain
documents.
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 protests were received.
Deputy City Manager Starman provided an overview of the Report to Council dated June 22,
2001, incorporated herein by reference, regarding the issuance and sale of Lease Revenue
Bonds to utilize pass-through funds by the Redding School District (District) for various
capital outlay projects.
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Mr. Starman related that the Redding Redevelopment Agency (Agency) and the City Council
must make the following findings: (1) the proposed capital projects to be financed with the
bond proceeds meet the requirements of the pass-through agreements and Redevelopment
Law, (2) the capital activities will be of primary benefit to the project areas, (3) there are no
other reasonable means of financing the projects, and (4) the capital activities will eliminate
one or more blighting conditions.
Mr. Starman recalled that the Redding Redevelopment Agency (Agency), at its meeting of
April 3, 2001, agreed, in concept, to issue bonds on behalf of the District not-to-exceed $7.5
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151
million, including issuance and a reserve fund, for seven (7) projects not-to-exceed $6
million. He explained that the noted findings are necessary for all of the District's proposed
improvement projects.
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Mr. Starman continued that the District and the Agency will enter into a Site Lease
Agreement in which the Agency will lease Bonny View School property from the District
at a nominal fee and through a Facility Lease Agreement, the District will lease back the
property from the Agency. The bonds are to be repaid from the lease payments made by the
District (pass-through funds) and the District's General Fund as needed. Mr. Starman
assured there is no obligation or pledge on the part of the Agency to repay the bonds with its
tax increment.
Mr. Starman indicated that the Agency will use the District's pass-through funds to help
service the debt, and the bonds will remain subordinate to current and future Agency
obligations, allowing the Agency to use the pass-through funds at any time it decides the
funds are needed to meet other Agency indebtedness.
Mr. Starman noted that the City and the District have already entered into agreements to
utilize District gymnasiums. He added that the proposed resolutions, funds, and agreements
are contingent upon the District's ability to secure bond insurance.
It is the recommendation of staff that the City Council and the Redding Redevelopment
Agency make findi~gs that the proposed capital projects are consistent with Redevelopment
Law and Market Street and Canby-Hilltop-Cypress pass-through agreements between the
Agency and the District.
It is further recommended that the Agency and the City Council adopt respective resolutions
approving the issuance and sale of lease revenue bonds for the District in an amount not to
exceed $7.5 million, subject to the issuance of bond insurance guaranteeing the scheduled
payment of principal and interest on the bonds.
I
It is also recommended that the Agency include in its resolution, approval of the Trust
Agreement, Site Lease, Facility Lease, Official Statement, and other documents related to
actions in connection with the bond issue.
Vice Mayor/Chair Kight determined that no one present wished to address this matter and
closed the public hearing.
In response to Vice Mayor/Chair Kight's concerns regarding exposure for the City and
Agency in the unlikely event of default by the District, Mr. Starman explained there is no
liability either to the City or the Agency. The Agency was only agreeing to use the District's
pass-through funds to help service the debt and those funds were subordinate to current and
future Agency obligations. All of the documents necessary for approval within the Agency's
proposed resolution specifically address the debt service issue.
Council/Agency Member Cibula applauded staff s work with the District to continually
improve the community as a whole.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
adopting the following findings:
1.
The proposed capital projects to be financed with the bond proceeds meet the
requirements of pass-through agreements and Redevelopment Law;
The capital activities will be of primary benefit to the project areas;
There are no other reasonable means of financing the projects; and
The capital activities will eliminate one or more blighting conditions;
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2.
3.
4.
and that the following seven (7) proposed capital projects are consistent with the Market
Street and Canby-Hilltop-Cypress pass-through agreements between the Redding
Redevelopment Agency and the Redding School District and with Redevelopment Law:
1. Construction of a multi-use room at Sequoia Middle School;
2. Additional square footage associated with gymnasiums to be constructed at Turtle
Bay School and Juniper Academy;
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Two (2) pop-out classrooms to be added to each gymnasium noted in Item 2;
Construction of an all-season track at Sequoia Middle School;
Construction of parking lot improvements at Bonny View, Sequoia, Juniper, and
Turtle Bay schools and at the District's Education Center;
Construction of classroom support facilities at Sequoia, Turtle Bay, Bonny View, and
Juniper schools; and
Repayment of a loan associated with a 12-acre school site purchased from the
Agency which now contains Turtle Bay School.
The Vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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152
3.
4.
5.
6.
7.
Council Members:
Council Members:
Council Members:
Council Members:
Pohlmeyer, Cibula, Stegall, and Kight
None
McGeorge
None
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MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
adopting Resolution No. 2001-107, a resolution of the City Council of the City of Redding
approving the Redding Redevelopment Agency's 2001 Lease Revenue Bonds, to issue and
sell Lease Revenue Bonds for Redding School District Projects in an amount not-to-exceed
seven million five hundred thousand dollars ($7,500,000). The Vote:
AYES: Council Members: Pohlmeyer, Cibula, Stegall, and Kight
NOES: Council Members: None
ABSENT: Council Members: McGeorge
ABSTAIN: Council Members: None
Resolution No. 2001-107 is on file in the office of the City Clerk.
MOTION: Made by Agency Member Pohlmeyer, seconded by Agency Member Stegall,
adopting the following findings:
1.
The proposed capital projects to be financed with the bond proceeds meet the
requirements of pass-through agreements and Redevelopment Law;
The capital activities will be of primary benefit to the project areas;
There are no other reasonable means of financing the projects; and
The capital activities will eliminate one or more blighting conditions;
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2.
3.
4.
and that the following proposed seven (7) capital projects are consistent with the Market
Street and Canby-Hilltop-Cypress pass-through agreements between the Redding
Redevelopment Agency and the Redding School District and with Redevelopment Law:
Construction of a multi-use room at Sequoia Middle School;
Additional square footage associated with gymnasiums to be constructed at Turtle
Bay School and Juniper Academy;
Two (2) pop-out classrooms to be added to each gymnasium noted in Item 2;
Construction of an all-season track at Sequoia Middle School;
Construction of parking lot improvements at Bonny View, Sequoia, Juniper, and
Turtle Bay schools and at the District's Education Center;
Construction of classroom support facilities at Sequoia, Turtle Bay, Bonny View, and
Juniper schools; and
Repayment of a loan associated with a 12-acre school site purchased from the
Agency which now contains Turtle Bay School.
The Vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
1.
2.
3.
4.
5.
6.
7.
Agency Members:
Agency Members:
Agency Members:
Agency Members:
Pohlmeyer, Cibula, Stegall, and Kight
None
McGeorge
None
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MOTION: Made by Agency Member Pohlmeyer, seconded by Agency Member Stegall,
adopting Redevelopment Resolution No. 2001-13, a resolution of the Redevelopment
Agency of the City of Redding authorizing the issuance and sale of Redding Redevelopment
Agency's 2001 Lease Revenue Bonds for the Redding School District and authorizing the
execution and delivery of a Trust Agreement, a Site Lease, a Facility Lease, an Official
Statement, an Official Notice of Sale and other documents; and approving other related
actions in connection therewith.
153
The Vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Agency Members:
Agency Members:
Agency Members:
Agency Members:
Pohlmeyer, Cibula, Stegall, and Kight
None
McGeorge
None
At the hour of7:20 p.m., Chair Kight adjourned the special meeting of the Redevelopment
Agency.
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At the hour of7:20 p.m., Vice Mayor Kight reconvened the regular meeting of the Redding
City Council.
ORAL UPDATE ON CAPITAL IMPROVEMENT PROJECTS - Traffic Improvements
(A-050-080/T -080/T -100-375)
Assistant City Manager Perry provided an overview of the Report to Council dated June 28,
2001, incorporated herein by reference. He explained that funding for various projects listed
in the Report is provided through the State Transportation Improvement Program (STIP).
He related that the Regional Transportation Planning Agency (RTP A) members, Shasta
County, Redding, Shasta Lake City, and Anderson could receive an allocation of up to $250
million over the next 23 years, or conceivably $50 million every 5 years.
Mr. Perry related that for purposes of submitting proposals, the RTP A divides project
applications into two categories; Base Allocations which provide for installation of traffic
signals, road maintenance and other STIP eligible activities, and; Competitive Funding for
use in competitive projects which scored highest for their focus toward congestion, air
quality, and safety mitigation measures. He explained that Base Allocations amount to
approximately 10.8%, or $2.5 million of the annual allocation for five years, while
Competitive Funding accounts for the remaining 89.2% of funding allocation. Mr. Perry
added that it appears Redding will receive approximately 21 % of available competitive
funds.
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Public Works Administration Manager Duryee presented slides listing various improvement
projects and their ranking in short- or long-term project lists for funding. Those included the
Downtown circulation improvements, Highway 299 widening, the updated Master Traffic
Plan, and the Regional Transportation Plan to be completed this Fall. Mr. Duryee explained
that funding partnerships with CalTrans, on a matching one-to-one dollar basis, could
provide additional monies over and above the STIP funding for Interstate 5, Highway 44,
Highway 273, and Highway 299.
Mr. Duryee noted that should there be savings in some projects, those not currently at
funding level could move up on the list and become viable. Assistant City Manager Perry
interjected that some projects not listed for STIP funding at this time could be reviewed for
other types of funding such as Traffic Impact Fees for future construction.
City Manager Warren believed that, in the near future, the RTP A will discuss the possibility
of increasing STIP Base Allocation funding while reducing the amount of Competitive
Funding. According to Mr. Warren, discussions could lead to an increase in Base
Allocations of up to 40%, providing the cities and County with more funds for use in routine
maintenance projects, rather than competitive projects. He preferred utilizing the funds for
competitive projects to eliminate or improve existing problem areas, and urged Council to
consider that road maintenance/repair are routine and ongoing when developing its
preference for Base Allocation and Competitive funds distribution.
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Mr. Warren explained that the majority of projects listed for Competitive Funding are City
of Redding and CalTrans projects due to traffic problems on Interstate 5, State Highways and
core areas. He noted that larger Base Allocations which provide for road repair and
maintenance, defeat the purpose for which STIP funds were intended, i.e., competitive
projects to provide traffic improvements and remedy traffic problems.
In response to Vice Mayor Kight's request to provide a secondary pedestrian and traffic
bridge from the Redding Convention Center over the Sacramento River, Mr. Perry stated that
the project was submitted for funding consideration, but did not score well and was not
included on the list.
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Council Member Cibula questioned how much emphasis staff placed on reviewing
alternative routes and connecting streets rather than widening existing arterials. Mr. Perry
responded that the project score modeling favored projects with traffic problems, air quality
benefits, and those with a higher potential for fatalities. He added that staff submitted
projects for connecting streets and diverting traffic, but they did not fare well in the scoring
process.
Council Member Cibula opined that as a general planning principle for the City, emphasis
should be placed on providing alternative routes rather than diverting people to main
arterials. Development Services Director Hamilton interjected that the General Plan is
designed to review those types of alternatives whenever a plan is developed for a project.
Mr. Perry added that staff reviews alternatives, however, the basic road grid system for the
City is nearly complete and fairly structured, making it cost prohibitive to attempt re-
construction in tight urban areas.
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Council Member Cibula suggested constructing pedestrian connectors in those areas where
it is easier for a person to walk than drive.
Vice Mayor Kight expressed hope that the RTP A will continue to emphasize assistance to
existing problem areas and promote important projects, opining that the major problems are
in the core areas of Redding, Shasta Lake City, and Anderson, and those areas should receive
primary focus.
No action was required on this informational item.
Vi Klaseen expressed concern regarding the lack of discussion on public transportation and
urged Council to attend the RTP A meetings to show support and possibly gain a funding
edge for the dollars distributed for public transportation in the City of Redding.
RESOLUTION - Adopting a City Council Policy establishing criteria for setting fees for
recreation classes and programs
(A-050-060~R-006-650)
Community Services Director Niemer provided an overview of the Report to Council dated
May 25,2001, incorporated herein by reference, regarding a proposed City Council Policy
establishing criteria for setting fees for recreation classes and programs. She noted that the
City of Redding Recreation Division offers more than 350 classes and programs with over
8,000 participants generating upwards of $317,000, while requiring City subsidy in the
amount of $372,688. She informed Council that in order to meet the current budget
allocation, cost recovery must average 85%, but recent changes in the minimum wage and
increased participation have financially impacted the cost of providing programs.
I
Ms. Niemer observed that adoption of the Master Fee Schedule update in June of each year,
after the summer recreation schedule is published, makes it difficult for the Recreation
Director to plan classes and forecast costs into the next fiscal year. She pointed out that the
increase in the State minimum wage was not passed on to participants because fees for
programs were already posted. She advised that the process is such that fees are almost two
years behind due to unanticipated changes.
Ms. Niemer stated that the proposed policy will authorize staff to set rates, making them
accountable for meeting revenue and expense projections as well as setting fees and charges
appropriate to each program. She advised that historically, staff recovers an average of75%
of costs, but the recently adopted budget will require staff to recover 85% of costs making
it necessary to increase the average class by $2 to $4 per participant. She pointed out that
fees have not been increased for the last three years, but added that if fees are raised, low-cost
programs will not be impacted. She suggested that an alternative might be the reduction of
some highly subsidized programs, or an appropriation of additional funding, which will
amount to an additional $30,000 annually.
I
It is the recommendation of staff that the City Council adopt a resolution establishing a City
Council Policy setting criteria and authorizing staff to set fees for recreation classes and
programs.
In response to Vice Mayor Kight, Ms. Niemer explained that the proposed policy will
provide for a cost recovery level of 85% of all the programs combined rather than each
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155
program, because some, such as the adult programs, recover 100%, while other low-cost
programs will continue to be subsidized. Ms. Niemer added that currently a
scholarship/grant program supported by organizations such as Wells Fargo Bank, which
donated $5,000 to the program, is in place to provide program funding for families in need.
Vice Mayor Kight expressed appreciation for the support and assistance of groups and
organizations, and hoped that the scholarship program will remain intact. Ms. Niemer
advised that staffwill return to Council should they perceive a lack of available funding for
the scholarship program.
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Council Member Stegall stressed that fees at the new Aquatic Center remain affordable. Ms.
Niemer responded that an increase in admission fees and swimming lessons was presented
in a previous proposal and are the basis of the financial assumptions made in the report.
Council Member Stegall indicated support for the proposed policy, but was concerned with
a possible drop in program participation due to increased costs. She requested that should
enrollment and attendance drop, that the cost versus subsidy issue be returned to Council for
reVIew.
Council Member Cibula expressed opposition to recouping costs above 75%, indicating that
it will restrict the ability of some children to participate in many of the programs. He
advocated defraying some of the costs in lieu of cost recovery reaching 85%.
City Manager Warren clarified that not all adult programs are at the 100% cost recovery
level, but that staff will attempt to maintain youth programs at the current level, while
increasing the cost for adult and teen programs by approximately 10%. He cautioned that
an inadequate fee structure will result in increased program subsidy each year.
In response to Vice Mayor Kight, Ms. Niemer advised that in order to maintain the average
recovery level at 75%, $30,000 will be needed annually from the General Fund Reserve for
subsidy.
I
Council Member Pohlmeyer thought the 85% recovery of direct costs was commendable and
achievable. He expressed confidence staff will continue to ensure that youth programs be
offered at a nominal fee and that scholarship and grant funds would continue to be available
for those needing assistance.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
adopting Resolution No. 2001-108, a resolution of the City Council ofthe City of Redding
adopting City Council Policy No. 806 - Recreation Classes and Program Fees, setting youth
recreation class/program fees at a target rate of 85% recovery of the direct costs associated
with the program and adult recreation class/program fees set at a target rate of 1 00% recovery
of the direct costs associated with the program. The Vote:
AYES: Council Members: Pohlmeyer, Stegall, and Kight
NOES: Council Members: Cibula
ABSENT: Council Members: McGeorge
ABSTAIN: Council Members: None
Resolution No. 2001-108 is on file in the office of the City Clerk.
ADJOURNMENT
There being no further business, at the hour of 8:25 p.m., Vice Mayor Kight declared the
meeting adjourned.
I
APPROVED
vic3o;s'L
ATTEST:
~~;~
City Clerk /
07/03/2001