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HomeMy WebLinkAboutMinutes - City Council - 2002-02-05 21 City Council, Regular Meeting Civic Center Council Chambers 777 Cypress Avenue, Redding, California February 5, 2002, 7:00 p.m. The Pledge of Allegiance to the Flag was led by Bob Wise, Channel 7-KRCR General Manager. I The Invocation was offered by Al Weissberg, Temple Beth Israel. The meeting was called to order by Vice Mayor Cibula with the following Council Members present: McGeorge, PoWmeyer, and Stegall. Mayor I}.ight was absent. ~ ~ ~ " ~ 1 ;:1 ~ -1 -l ~ Also present .were City Manager Warren, Assistant City Manager Perry, Deputy City Manager Starman, City Attorney Wingate, Development Services Director Hamilton, Administrative Services Director Bachman, Electric Utility Director Feider, Senior Planner John Keaney, Senior Redevelopment Project Coordinator Morgon, City Clerk Strohmayer, Assistant City Clerk Sherman, and Executive Secretary Stribley. Treasurer's Report - December 2001 (A-050-100-600) Total Treasurer's Accountability $124,250,451.30 .< ~ . ~ ~ ~ ~ , ~ ~ ~ .( 1 ~ , ~ :t " ~ ~ ~ i ~ j ~ 1 ~ ~ i -4 ~ t l t j' { i ~ 1 .; 1 < .{ ~ ~ ~ ~ Approval of Minutes - Special Meetings of January 11, 2002, and January 15, 2002, and Regular Meeting of January 15,2002. I Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 14, check numbers 296909 through 297545 inclusive, in the amount of $5,177,259.12, for the period of January 15, 2002, through January 31, 2002; Wire Transfers for the period of January 14, 2002, through January 31, 2002, in the amount of$7,892,457.08; and Payroll Register No. 15, electronic deposit transaction numbers 102495 through 103128 and check numbers 486703 through 486981 inclusive, in the amount of$1 ,645,699.68, for the period of January 6, 2002, through January 19,2002, be approved. TOTAL: $14,715,416.08.. Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities $161,112,793.00 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 December 2001 be accepted. I Ordinance - Amending Redding Municipal Code Chapter l4.16-Sewers (W-020) It is the recommendation of the Assistant City Manager that Ordinance No. 2291 be adopted, an ordinance of the City Council of the City of Redding repealing Redding Municipal Code Chapter 14.16, and adding a new Chapter 14. 16-Sewers, in accordance with Federal Clean Water Act regulations. Grant Application - Housing and Urban Development Economic Development Initiative Funds (G-I00-070 & E-050) It is the recommendation of the Economic Development Director that the City Council authorize application for a grant in the amount of $490,000 for Housing and Urban Development Economic Development Initiative funds authorized by the U.S. Congress PL- 107-73 (Veterans Affairs-Department of Housing and Urban Development-Independent Agencies Appropriation Act) from the Department of Housing & Urban Development (HUD) to assist with acquisition of needed property for the Stillwater Business Park Project; authorize completion of the Master Environmental Impact Report for the Stillwater Business 2/5/2002 -- - ~~ _~.'IL___'tJ. ..s.........~..o>'<-.. .~___ _____ ~~ 1 22 Park Project; and authorize the City Manager to sign all necessary documents as required by HUD. Agricultural Lease Agreement - Keith Kraft (C-070-I00) It is the recommendation of the Support Services Director that the City Council approve the agricultural lease agreement with Keith Kraft for approximately five acres of City-owned property located west ofInterstate 5 on Riverland Drive in the amount of $250 annually for a term of one year, and authorize the Mayor to sign the agreement. , , 1 f ~ ~ ~ , ~ ~ f ~ )' ~ Airport Ground Lease Agreement - Air Shasta Rotor and W.ing; and Airport Ground Lease Agreement Cancellation - Ascot Aviation (C-070-100 & A-090-100) It is the recommendation of the Supp.ort Services Director that the City Council approve the Ground Lease Agreement with Air Shasta Rotor and Wing and concurrently cancel the Ground Lease Agreement with Ascot Aviation and its sub-lessee, SunAir, at the Redding Municipal Airport; and authorize the Mayor to execute same. The term of the Air Shasta Rotor and Wing lease is to the year 2027, with two five-year extension options, in the amount of $25,500 annually with a 3% annual increase. I f ~ , ~ ~ ~ [ f . " ~ ~ t ~ } I l ~ } f ,~ [ 07 t r t \l' ~ I , r ~ ~ t " ! ~ ~ ? f ,. i' t ~ ~ Off Airport Car Rental A~eements and Permits - Enterprise Rent -A-Car and Budget Rent -A- Car . (A-090-100) It is the recommendation of the Support Services Director that the City Council approve the Off Airport Car Rental Agreements and permits with EAM Advertising, Inc., dba Budget' Rent-A-Car and Enterprise Rent-A-Car for car rental concessions at Redding Municipal Airport for a term of one (1) year in the amount of 10% of gross receipts related to all rental car transactions at the Airport. Resolution - Arbor Day and Arbor Week (A-050-060-600 & A-050-220-075) It is the recommendation of the Support Services Director that Resolution No. 2002-18 be adopted, a resolution of the City Council of the City of Redding declaring March 8, 2002, as "Community Tree Planting Day", otherwise, known as "Arbor Day", and March 4 through 8,2002, as "Arbor Week"; anQ recognizing the City of Redding as a "Tree City U.S.A." and "Tree Line Utility U.S.A." awards recipient from the National Arbor Day Foundation. I Resolution - Adopting Mitigated Negative Declaration and Mitigation Monitoring Plan for the Buckeye Water 4MG Reservoir Project (L-OI0-070 & W-030-600) It is the recommendation of the Development Services Director that Resolution No. 2002-19 be adopted, a resolution of the City Council of the City of Redding adopting a Mitigated Negative Declaration ~d Mitigation Monitoring Plan for the 4MG (4-million-gallon) reservoir project at Buckeye Water Treatment Plant and authorizing staffto proceed with the project. Award Request for Proposal- RFP Schedule No. 3533, Inspection/overhaul of Unit 4 Steam Turbine and Auxiliaries at Redding Power Plant (B-050-100 & E-120-150-500) It is the recommendation of the Electric Utility Director that Request for Proposal No. 3533, Inspection/overhaul of Unit 4 Steam Turbine and Auxiliaries at the Redding Power Plant, be awarded to Tetrad Services, Inc., in the amount of $195,615; and authorize additional expenditures for unanticip~ted maintenance/repairs to the Unit 4 Steam Turbine, based on availability of budgeted funds. I Memorandum Agreement to Accept Grant - McCo~ell Foundation; Contract - Fireworks Display with Boom Boo~ Productions; and Resolution - Appropriating and accepting grant revenue (G-lOO & B-130-070) It is the recommendation of the Community Services Director that the City Council accept the $80,000 grant from the McConnell Foundation to fund the fireworks display for the City of Redding 2002 Fourth of July Freedom Festival and authorize the Mayor to sign Memorandum of Agreement No. 2001-03 with the McConnell Foundation outlining grant conditions. t- ~ - . 2/5/2002 23 It is further recommended that the City Council award the contract to Boom Boom Productions to provide pyrotechnic services at the 2002 Fourth of July Freedom Festival in the amount of $80,000. It is also recommended that Resolution No. 2002-20 be adopted, a resolution of the City Council ofthe City of Redding approving and adopting the 31 5t Amendment to City Budget Resolution No. 2001-104: 1) appropriating $30,000 for the Fourth of July fireworks; and 2) . accepting an additional $40,000 in grant revenue for fiscal year 2001-02. I Resolution - Accepting a grant from the Wells Fargo Foundation for the Plunge Pass Program (G-I00/P-050-700-600/B-130-070) It is the recommendation of the Community Services Director that Resolution No. 2002-21 be adopted, a resolution of the City Council of the City of Redding accepting grant funds from the Wells Fargo Foundation in the amount of $2,000 to implement the Plunge Pass Program to provide free admission passes to the municipal swimming pool for eligible youngsters. Purchase of Equipment - Water Tender vehicle (B-050-100 & P-150-070) It is the recommendation of the Fire Chief that the City Council approve the request to purchase one 3,000 gallon Water Tender in the amount of$190,591 from u.S. Tanker, Inc. through a recent competitive bid issued by the County of Shasta, subject to receipt and approval of required bonds and insurance. I Resolution - Authorize destruction of certain Police Department inactive records (A-050-270) It is the recommendation of the Chief of Police that Resolution No. 2002-22 be adopted, a resolution of the City Council of the City of Redding authorizing the destruction of certain records in the custody of the Redding Police Department which have been retained from two to five years, pursuant to Penal Code Section 832.5 and which are eligible for destruction with written consent ofthe City Attorney. Resolution - Accepting and appropriating funds to purchase equipment (B-130-070 & P-150-150) It is the recommendation of the Chief of Police that Resolution No. 2002-23 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 36th Amendment to City Budget Resolution No. 2001-104 recognizing $33,610 in additional revenue and appropriating $33,610 for the purchase of computer equipment for the Police Department for Fiscal Year 2001-02, as a result of a litigation settlement with Toshiba on behalf of the City of Redding and County of Shasta for computer equipment purchased in 1998. Accept Comprehensive Annual Financial Report for fiscal year ended June 30. 2001 (F-205-150-075) It is the recommendation ofthe Administrative Services Director that the City Council accept the Comprehensive Annual Financial Report for Fiscal Year ending June 30, 2001. I Insurance for Equipment - Property/boiler, and machinery insurance for Redding Power Plant (R-I00-375-200) It is the recommendation of the Administrative Services Director that the City Council approve staffs authorization to purchase insurance from Starr Tech/Hartford Steam Boiler Insurance Company in the amount of $328,970 with a deductible of $250,000 for property/boiler and machinery for the Redding Power Plant for 2002-03, effective February 5, 2002 to February 4, 2003. 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: AYES: Council Members - McGeorge, Pohlmeyer, Stegall, and Cibula NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - Kight 2/5/2002 24 Ordinance No. 2291 and Resolution Nos. 2002-18, 2002-19, 2002-20, 2002-21,2002-22, and 2002-23 are on file in the Office of the City Clerk. PUBLIC HEARING - Certifying the Supplement to Final Environmental Impact Report (EIR-2-00) and Adopting the Mitigation Monitoring Program for the Redding Sports Complex (L-010-075 & P-050-600-200) The hour of 7:00 p.m. having arrived, Vice Mayor Cibula opened the public hearing regarding certification ofthe Supplement to Environmental Impact Report (EIR-2-00) and adoption of the Mitigation Monitoring Program (MMP) for the Redding Sports Complex. I The following documents are on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Affidavit of Mailing - Notice of Public Hearing City Clerk Strohmayer advised that no protests were received. Development Services Director Hamilton provided an overview of the Report to Council dated January 24,2002, recalling that the Final Environmental Impact Report (FEIR) for the Redding Sports Complex was certified by the City Council in March 2001. He stated that since certification, there have been numerous minor changes to the project as it moved through the design and engineering stage. However, principal changes such as the full access driveway on Old Oregon Trail opposite Duffy Lane, reconfiguration ofthe parking lot and construction of the sewer connection to the south instead of the west as originally proposed made it necessary to prepare a Supplemental Environmental Impact Report (SEIR) to EIR -2- 00. Mr. Hamilton explained that the Supplement to the FEIR was considered by the Planning Commission on January 8,2002, with no substantive public comments. He noted that the supplemental report adequately addressed traffic issues related in three letters received. Therefore, the Planning Commission recommended certification of the Supplemental FEIR. I Mr. Hamilton recommended that the City Council adopt the resolution making findings for certification of the Supplemental Environmental Impact Report and the revised Mitigation Monitoring Program for the Redding Sports Complex. Marge Cantrell opined that the EIR did not adequately address significant existing and potential problems with regard to parking, adequate notification of area residents beyond the required 800 feet boundary, traffic congestion and signals, safety issues such as bike lanes or trails for children, speed limits, and additional ingress and egress points. She stressed that this youth-oriented project's foremost priority should be safety. In response to Ms. Cantrell, Senior Planner Keaney stated that the total number of parking spaces approximates 800 with a criteria minimum of 50-55 spaces per ball field. He explained that standard project notification of surrounding properties is 300 feet. However, notification mailing for the Sports Complex Project exceeded that requirement by an additional 500 feet. Mr. Keaney explained that the only traffic issues are the additional driveway and a pedestrian trail. He related that traffic analyses did not identify any significant traffic congestion problems, and trip generation results contained in the original EIR were based on full-facility utilization. In addition, the needs assessment did not require a signal at Old Oregon Trail or Old 44 Drive. I Assistant City Manager Perry observed that the Final Environmental Impact Report certified in March 200 I, evaluated a larger project than is currently being contemplated. He noted that as additional ball fields are constructed, additional parking will be added. He related that a walking trail will be constructed within the project, and bike lanes on Abernathy Road, Viking Way, and Tarmac Road will be upgraded to City standilrds. He anticipated that the County will widen Old Oregon Trail some time in the future. 2/512002 25 Vice Mayor Cibula suggested that staff contact the County of Shasta to discuss the possibility of adding bike lanes on Old Oregon Trail to provide safe access to the Sports Complex for pedestrian or bicyclists. Vice Mayor Cibula determined that there was no one else wishing to address this matter and closed the public hearing. I MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall, adopting Resolution No. 2002-24, a resolution of the City Council of the City of Redding making findings and certifying the completeness and accuracy of Supplement to the Final Environmental Impact Report EIR-2-00 and adopting the revised Mitigation Monitoring Program for the Redding Sports Complex. The Vote:' AYES: NOES: ABSTAIN: ABSENT: Council Members - McGeorge, Pohlmeyer, Stegall, and Cibula Council Members - None Council Members - None Council Members - Kight , . ~ Resolution No. 2002-24 is on file in the Office of the City Clerk. , I . I DOWNTOWN TRANSPORTATION IMPROVEMENT AD HOC COMMITTEE (B-080-600) Deputy City Manager Starman stated that disappointing information was received recently from the Regional Tran~portation Planning Agency (RTP A) after completion ofthe Report To Council dated January 4, 2002. The RTPA indicated that a significant number of proposed projects over and above estimates are competing for the first round of State Transportation Improvement Program (STIP) funds. Unfortunately, the funds are insufficient to accommodate all ofthe projects approved earlier by the RTP A. He related that the State Transportation Committee (STC), responsible for allocating the funds, will be meeting later this week to discuss the cash flow dilemma, and it may be that the Railroad Grade Separation/Switching Yard Relocation and the Downtown Mall Circulation projects will be placed on hold for up to two years pending available funding. '1 ,i ~ J ) . 1 .:l Mr. Starman recommended that appointments to the Downtown Transportation Ad Hoc Committee, formed to review and study the merits of these projects, be deferred for thirty (30) days pending additional information on the availability of STIP funds. 1 . ~ , ~ < ~ j 4 ~ 1 J ...., ~ < , . .J, ~ 1 1 Council Members Stegall and Cibula expressed disappointment that the downtown area studies will be delayed. Mr. Starman advised he will bring back a report to Council within the next 30 days to determine if the studies for the Railroad Grade Separation/Switching Yard Relocation and the Downtown Mall Circulation projects could be funded by another source. Council Member Stegall observed, however, that if the studies are performed at this time, the information may be outdated when project funding becomes available at some future point. Mr. Starman concurred. -i j 1 1 ~ 9 I MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer, to defer appointments to the Downtown Transportation Ad Hoc Committee for 30 days pending receipt of additional information from the State Transportation Commission regarding availability of over-extended State Transportation Improvement Project (STIP) funds. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - McGeorge, Pohlmeyer, Stegall, and Cibula Council Members - None Council Members - None Council Members - Kight 1 1 J 1 1 1 ~ i '" ~ ~ 1 ~ .} 1 "" i ~ 1 1 , 1 : AUDITOR'S COMMUNICATION AND REPORTS (F-205-150-075) Administrative Services Director Bachman announced that the City received a Management Letter from the Independent Auditor to the Audit Committee for year ended June 30, 2001, with no suggested corrections. He reported that the rules governing preparation of the audit now require that an inventory of the City's infrastructures, such as roads, wells, etc., be performed in order to determine value and depreciation timelines. He applauded Finance Division staff for their hard work and capabilities in complying with difficult reporting changes. 2/5/2002 j '. 26 Mr. Bachman recommend~d that the City Council accept the Independent Auditor's Communication to the Audit Committee and the Single Audit Reports for the year ended June 30,2001. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall, accepting the Indepenqent Auditor's Communication and the Single Audit Reports for the year ended June 30, 2001. The Vote: AYES: Council Members - McGeorge, Pohlmeyer, Stegall, and Cibula NOES: Council Members - None ABSTAIN: Council Memb~rs - None ABSENT: Council Members - Kight ~ I ~ , f f ~ t ~ ~ r ~ ... ~~ REVIEW OF CITY PROJECTS AND PROGRAMS LIST (A-050-080) City Manager Warren provided an overview of the Major Projects and Programs List 2002, representing 42 major City projects, including project costs and estimated completion dates. He noted that the list did not include special assignments directed by the City Manager or City Council, the biennial budget, interactions with the State and its regulatory agencies, or ongoing everyday operations. I Mr. Warren suggested that the City Council may wish to authorize a workshop to review or modify the Projects and Programs List. ~ ;, It was the consensus of the City Council to accept the report as presented and authorize the City Manager to schedule a City Council workshop to review the City's Major Projects List. .. 1>- r l f i ~ ~ ~ ~ t ~ ~ t fr t f }- , ,. ~ )r t t r > ~ r , l\ f . t ~ r f j ~ , ~ t ~ ~ r t t ~ ~ f SPORTS COMPLEX PROJECT - Update and Recommendations for the Sports Complex and the Aquati~ Center (P-050-600-200 & P-050-700~600) Assistant City Manager Perry provided an overview of the Report to Council dated January 29, 2002, regarding the progress and status of the Sports Complex project. Mr~ Perry explained that based on Council's decision at the January 15, 2002, City Council meeting to transfer $550,000 from the Sports Complex to the Aquatic Center, a review of the Sports Complex as it currently exists was in 'order. He provided a brief overview of the Project budget relating that $15,450,000 is earmark~d for on-site improvements with an additional $1,210,000 dedicated to off-site improvements such as traffic signals, turn lanes on Old Oregon Trail, sewer line extension ~nd a water lift station. I Mr. Perry recalled that Council also directed that the prefabricated multipurpose facility be considered an additive alternate. In light of that decision, Project Architect Big League Dreams requested that the Vinyl Pavilion then be lengthened to include a concession stand and restroom rather than a separate free-standing concession building. This change will require an amendment to the architect's contract. He related that the site plan has been submitted for approval to the California State Department ofFish and G(IIIle and the U.S. Army Corps of Engineers. Mr. Perry reviewed the list of items to be included in the base bid and those items that are designated as additive alternates. He explained that the City is limited on the amount of additive alternates to 10% of available funds, or approximately $1,360,000. Mr. Perry reported that staff researched all-weather versus grass soccer fields, and while all- weather fields are slightly more expensive, they are the most cost effective in the long run because they can be used for a longer period of time throughout the year, and maintenance costs are reduced. I Mr. Perry related that design work is underway on the project off-site improvements which primarily consist of traffic signals and improvements, installation of a booster water pump and a sewer line extension. These items are scheduled to go out for separate bids in summer of 2002. Mr. Perry reported that the study for the geothermal heating unit for the multi-purpose facility was very positive at a cost of $220,000 including insulation and will be funded with Public Goods monies using Set-Aside funds. 2/5/2002 27 He indicated that Project completion is scheduled for April 1, 2003. Mr. Perry recommended that the City Council confirm the list of additive alternates, approve inclusion of the HV AC system and insulation as part of the Multipurpose Facility, direct staff to determine the need for a signal at the eastbound offramp of Highway 44 to Airport Road, direct staff to amend the architect's contract if the vinyl pavilion can be modified without delaying the start of construction, and proceed with at least two all-weather soccer field surfaces. I Council Member McGeorge commended staff for addressing Council's concerns while making both the Sports Complex and the Aquatic Center Projects obtainable. Administrative Services Director Bachman presented an update of the Aquatic Center Project (Redding Plunge) advising that the contract with Dale Construction has been signed and work has begun on the project. He added that the contractor is still hoping to complete construction by July 1,2002, although the contract completion date is September 13,2002. Mr. Bachman noted that staff is working with Dale Construction on deductive change orders as directed by Council, and investigating alternate methods of providing revenue to offset elimination of the 50~ increase to adult admission. He also advised that Redding Rotary has begun demolition work on the old change house. j 0( , 1 ... City Council Members applauded the donation of$2,000 by Wells Fargo Bank to the Plunge Pass Program. "': , I MOTION: Made by Couricil Member McGeorge, seconded by Council Member Pohlmeyer, approving the list of additive alternates and the geothermal Heating- V entilation- Air Conditioning (HV AC) system; directing staff to determine the need for signalization at the eastbound off ramp of Highway 44 to Airport Road; amending the architect's contract if the vinyl pavi 1 ion can be modified as recommended without delaying the beginning of construction; directing staff to proceed with all-weather soccer field surfaces and include two all-weather fields in the base bid for the Sports Complex Project; and accepting, for information only, the update for the Aquatic Center Project. The Vote: A YES: Council Members - McGeorge, Pohlmeyer, Stegall, and Cibula NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - Kight < 4 ~ ~ , ~ 1 1 ~ ~ j t . 3-0N-3 BASKETBALL ANNUAL SHOOTOUT - Request from KRCR Channel 7 for Co- sponsorship (A-050-080) City Manager Warren observed that the annual "3-on3" Basketball Shootout Event has become increasingly popular since its inception in 1997 wherein 122 teams competed; that number has now grown to 285 teams in 2001. While KRCR Channel 7 and the local Pepsi distributor served as a co-sponsors to the yvent for many years, Mr. Warren said a recent change in ownership of the Pepsi plant eliminated further financial assistance. 1 j 1 J t 1 l 1 J I 1 City Manager Warren recommended that the City Council approve co-sponsoring the event with KRCR Channel 7 in the amount of$12,000. He explained that KRCR will purchase two vinyl surface courts for use in the event and provide advertising at a cost of $50,000. Mr. Warren pointed out that a portion of the proceeds is returned to City recreation projects. . ~ ~ I Bob Wise, General Manager for Channel 7 -KRCR, indicated that the station does not receive revenue from the projyct but provides the eve~t solely as a public service. He noted that his staff provides assistance throughout the event and expressed hope that the City will co- sponsor the event for the benefit of the community. l , ~ I j f MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer, approving the KRCR-Channel 7 request for the City co-sponsorship of the "3-on-3" Basketball Shootout, scheduled for June, 2002, at the Redding Convention Center at a cost of$12,000. The Vote: A YES: Council Members - McGeorge, Pohlmeyer, Stegall, and Cibula NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - Kight . t :l . ~ I , I 1 i ~. t 1: 3 ~ ~ J j 2/5/2002 28 JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY At the hour of 8:04 p.m., Vice Mayor/Agency Chair Cibula convened the Special Meeting of th~ Redding Redevelopment Agency for a joint meeting with the City Council. ~ ~ ~ t t ;> ,. , RESOLUTION - Owner Participation Agreement CCHNC Hotel Redding Associates (CCH); and RESOLUTION - Approving residual receipts loan to CCH (R-030-100-055) Deputy City Manager Starman provided an overview of the Report to City Council and Redding Redevelopment Agency dated January 28, 2002, relating that CCHNC Hotel Redding Associates, a C~lifomia Limited Partnership (CCH) has been successful in securing tax credit allocations which provide much needed financial assistance for the project. He noted that the Owners Participation Agreement (OPA) will put in place the remaining financing required for the rehabilitation project. He recalled that the Redding Redevelopment Agency (Agency) and the City previously agreed to loan up to $2.6 million toward the project. Mr. Starman stated that the OP A: 1) incorporates the terms and cop.ditions of the Acquisition and Pre-Construction Agreement approved by the Agency in April, 2001; 2) provides for the balance of approved funding; 3) sets forth the obligations ofCCH with regard to the rehabilitation of the Hotel Redding; and 4) converts the existing deferred loan to a residual receipts loan. He added that CCH requested that the $225,000 Operating Grant be converted to a residual receipts loan and CCH be authorized to use the loan proceeds for operating expenses as well as rehabilitation-related activities, and proposed that $100,000 be transferred from the "relocation line item" in the project budget to the "rehabilitation line item" to more accUrately reflect CCH's most recent budget projections. Neither request will increase the loan commitment ofthe Agency or the City. I f t j ~ ~ ~ > t r ~ ~ > ~ Po ~. ~ ~ ~ Mr. Starman recommended that the Agency adopt a resolution approving adoption of the Owners Participation Agreement between the Agency and CCH to provide $1,920,081.09 to CCH for the acquisition, rehabilitatio~, and operation of the Hotel Redding as a 49-unit senior affordable housing project. He stated that approval of the OPA will put funds into escrow and allow completion of the project. I , ~ ! ~ ~ ;l. f "'" ::l. ~ 1 '1 i I i I' i F ~ ~ r r l ~ i l< Mr. Starman further recommended that the City Council adopt a resolution approving a loan up to $702,628.53 in HOME program funds to CCH for rehabilitation of the Hotel Redding. He pointed out that the $2.6 million aggregate amount includes amounts previously loaned by the Agency and the City as well as additional funds to be loaned through resolution this evemng. In response to Vice Mayor/Agency Chair Cibula, Mr. Starman explained that the City will have a second deed of trust on the property while it is under construction as security for loan funds. Vice Mayor/Agency Chair Cibula stressed that staff continue to closely monitor use of the funds for the project. ~ ~ t f t t I l- t ~ t , \ " MOTION: Made by Agency Member McGeorge, seconded by Agency Member Stegall, adopting Redding Redevelopment Agency Resolution No. 2002-1, a resolution of the Redding Redevelopment Agency of the City of Redding approving the adoption of the Owners Participation Agreement between the Redding Redevelopment Agency (Agency) and CCHNC Hotel Redding Associates (CCH), a California Limited Partnership, providing Housing Set-Aside funds to CCH for a residual receipts loan of $1,920,081.09 for acquisition, rehabilitation, and operation of the Hotel Redding as a 49-unit senior affordable housing project; and authorizing the Chair to sign all necessary documents. The Vote: . Ayes: Agency Members: McGeorge, Pohlmeyer, Stegall, and Cibula Noes: Agency Members: None Abstain: Agency Members: None Absent: Agency Members: Kight I Redding Redevelopment Resolution No. 2002-1 is on file in the Redevelopment Division Office. 2/5/2002 29 I MOTION: Made by Council Member McGeorge, seconded by Council Member Stegall, adopting Resolution No. 2002-25, a resolution of the City Council of the City of Redding approving a loan of HOME Investment Partnerships Program (HOME) funds not-to-exceed $702,628.53, to CCH for rehabilitation of the Hotel Redding, subject to execution of the Owners Participation Agreement between the Redevelopment Agency and CCH; and authorizing the Mayor to sign all necessary documents. The Vote: Ayes: Council Members: McGeorge, Pohlmeyer, Stegall and Cibula Noes: Council Members: None Abstain: Council Members: None Absent: Council Members: Kight City Council Resolution No. 2002-25 are available in the Office of the City Clerk. At the hour of 8: 12 p.m., Vice Mayor/Agency Chair Cibula adjourned the Special Meeting of the Redding Redevelopment Agency. MONTHLY FINANCIAL REPORT - Electric Utility, December 2001 (B-130-070) Electric Utility Director Feider provided an overview of the Report to Council, dated January 25,2002, advising that retail revenues are 3.5%, or $1,387,674 below projections, primarily due to ongoing customer conservation. He pointed out that wholesale revenues are $12,015,296 or 38.6% below projections, due to the ongoing weakness in wholesale spot- market conditions. Operating revenue after energy costs is $20,803,634.00, but that figure is $7,031,063 or 25.3% below projections. The total cost of electricity through December is $5,957,805 or 13.7% below year-to-date projections. The Utility's earnings before interest, depreciation, and amortization is $13,461,140.00, but below the projected $18,392,364. The current outstanding balance for the Debt Reduction Program is $65.8 million. , ~ . .; I Mr. Feider reported that the an audit repoT! initiated by the Federal Energy Regulatory Commission (FERC) of the California Independent System Operator (ISO), which operates the power grid for the Power Market, stated that the ISO was in serious need of repair with operating protocols and regime too complex and too costly. He stated that the City voiced support of the report and is hopeful constructive changes will occur in the next year. ~ 1 . , l { q i i i 3 "':1 i j j 1 ~ ~ ~ ~ '1 .( ~ ~ 1 ~ ~ ~ 1 1 ~ ~ ~ 1 ) ~ i 1 i ~ 1 -'! 1 "\ ~ i ~ j t , '" -l t ~ 1 ~ 4 i ~ ~ -l 1 . ~ Mr. Feider recommended approval of the Electric Utility's Financial Report for December 2001. MOTION: Made by Council Member McGeorge, seconded by Council Member Stegall, accepting the Electric Utility's Monthly Financial Report for December 2001. The Vote: Ayes: Council Members: McGeorge, Pohlmeyer, Stegall, and Cibula Noes: Council Members: None Abstain: Council Members: None Absent: Council Members: Kight I PUBLIC COMMENT (A-050-270/T -1 00-300/P-l 00-1 00) City Manager Warren announced that Chief of Police Blankenship is the outgoing President of the California Police Chiefs' Association and at the Association's meeting this week, received recognition from Governor Gray Davis, who noted that Chief Blankenship was instrumental in establishing and maintaining an excellent rapport with the Governor's Office in his capacity as President of the Police Chiefs' Association. Mr. Warren also reported that the Governor presented a proclamation to Chief Blankenship declaring February 5, 2002, "Bob Blankenship Day" in the State of California. Marie Carr-Fitzgerald expressed disappointment that the Downtown Transportation Ad Hoc Committee was not appointed during this evening's meeting, but expressed continued support for the Railroad Grade Separation Project in the Downtown Area. Jack Osburn, Busin,ess Representative for International Brotherhood of Electrical Workers (IBEW) Local Union 1245, thanked the City Council for authorizing Martin Luther King, Jr. Day as a legal holiday for employees of the City of Redding. 2/5/2002 30 ADJOURNMENT There being no further business, at the hour of 8:23 p.m., Vice Mayor Cibula declared the meeting adjourned. APPROVED I ~ 1 1: ) p t t ~ f I ~ r- ~ r;- Jt ;. l ~ l r ~ ? t ~ l S '1 f f It f t ~ ~ i r i , r I f f ~ , , ATTEST: L~ City Clerk I . . '1 I r ~ ~ ;; ~ ~ r ; t ~ ~ ~ r ~ r t I \ f I ~_ ...~. ."'~' ~.)-'o.... \..:.~" , 2/5/2002