HomeMy WebLinkAboutMinutes - City Council - 2002-02-19
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City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress Avenue,
Redding, California
February 19,2002, 7:00 p.m.
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The Pledge of Allegiance to the Flag was led by Council Member Pohlmeyer.
The Invocation was offered by Pastor Bill Johnson, Bethel Assembly of God.
The meeting was called to order by Vice Mayor Cibula with the following Council Members
present: McGeorge, Pohlmeyer, and Stegall. Mayor Kight arrived at 7:25 p.m.
Also present were City Manager Warren, Assistant City Manager Perry, Deputy City
Manager Starman, City Attorney. Wingate, Development Services Director Hamilton,
Electric Utility Director Feider, Finance Officer Strong, City Treasurer Clark, Community
Services Director Niemer" Deputy Fire Chief/Fire Marshal Becker, Associate Engineer
Braithwaite, City Clerk Strohmayer, and Executive Secretary Stribley.
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PRESENTATION OF APPRECIATION PLAQUES - Community Development Advisory
Committee
(B-080-600-100)
Vice Mayor Cibula presented appreciation plaques to Sherrill Bambauer, Kimberly Myers,
and Larry Sterk for their service on the Community Development Advisory Committee.
The City Council thallked them for their service to the community.
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PRESENTATION - California Water Environment Association
(A-050-060)
Larry Colby, Vice President of the California Water Environment Association (CWEA),
presented a resolution of appreciation to the City for hosting the successful California Water
Environment Association 2001 Northern Regional Training Conference.
The City Council thanked the California Water Environment Association for the opportunity
to host the conference and acknowledged City staff members who were instrumental in the
success of the conference.
Approval of Minutes - Special Meeting of February 5, 2002, and Regular Meeting of
February 5, 2002.
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Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 15, check numbers 297546 through
297986 inclusive, in the amount of $10,256,556.03, for the period of February 5, 2002,
through February 14, 2002; Wire Transfers for the period of February 1, 2002, through
February 15,2002, in the amount of$2,733,493.36; and Payroll Register No. 16, electronic
deposit transaction numbers 103140 through 103776 and check numbers 487020 through
487319. inclusive,. in the amount of $1,649,649.29, for the period of January 20, 2002,
through February 2,2002, be approved.
TOTAL: $14,639,698.68
Resolution - Management Executive Pay-for-Performance Salary Plan relative to City Clerk
and City Treasurer
(P-I00-320/ A-050-055/ A-050-100)
It is the recommendation of the City Manager that Resolution No. 2002-26 be adopted, a
resolution of the City Council of the City of Redding amending the Executive Management
Pay-For-Performance Salary Plan, effective February 17,2002.
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Council Member Cibula explained that he will vote no on this item because he does not
support decreasing the elected portion of the salary. He opined that it is important that the
position as an elected official remain responsive to the people and believed the decrease was
at cross purpose to that goal.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - McGeorge, Pohlmeyer, and Stegall
Council Members - Cibula
Council Members - None
Council Members - Kight
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Partnership Agreement - Caltrans
(S-050-100 & T -080-720)
It is the recommendation of the Assistant City Manager that the City Council authorize staff
to negotiate an agreement with Caltrans to improve the appearance of community-related
signage and poles along State highways within the City. The projects under consideration
are: upgrading City-limit signs on State highways and possibly local streets (except
freeways); upgrading directional sign fr~es in the City; providing informal, attractive
signage for locating new subdivisions (City streets only); and upgrading traffic signal poles
(such as the those in front of the Civic Center). The goal is to provide Redding with an
upgraded image.
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Council Member Cibula viewed this as an excellent opportunity to provide signage to the
Downtown area and asked that it be included in discussions with Caltrans.
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Resolution - Authorizing preparation of a Redevelopment Plan Amendment for Canby-
Hilltop-Cypress Redevelopment Project; .
Resolution - Determining that a project area committee is not necessary concerning the
proposed Canby-Hilltop-Cypress Redevelopment Plan Amendment; .
Resolution - Authorizing preparation of a Redevelopment Plan Amendment for Market
Street Redevelopment Project; and
Resolution - Determining that a project area committee is not necessary concerning the
proposed Market Street Redevelopment Plan Amendment
(R:.030-050 & R-030-145)
It is the recommendation of the Deputy City Manager that Resolution No. 2002-27 be
adopted, a resolution oftp.e City Council of the City of Redding authorizing preparation of
a proposed Redevelopment Plan Amendment for the Canby-Hilltop-Cypress Redevelopment
Project, designating the lead and responsible agencies, and authorizing staff and consultants
to proceed with the Plan Amendment process pursuant to the California Community
Redevelopment Law, in order to extend the time line for eminent domain an additional 12
years.
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It is further recommended that Resolution No. 2002-28 be adopted, a resolution of the City
Council of the City of Redding determining that a project area committee is not necessary
and authorizing the City Manager or his designee to consult with residents, business owners,
and community organizations within the Redevelopment project concerning the proposed
Canby-Hilltop-Cypress Redevelopment Plan Amendment.
It is further recommended that Resolution No. 2002-29 be adopted, a resolution of the City
Council of the City of Redding authorizing preparation of a proposed Redevelopment Plan
Amendment for the Market Street Redevelopment Project, designating the lead and
responsible agencies, and authorizing staff and consultants to proceed with the Plan
Amendment process pursuant to the California Community Redevelopment Law, in order
to extend the time line for eminent domain an additional 12 years.
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It is also recommended that Resolution No. 2002-30 be adopted, a resolution of the City
Council of the City of Redding determining that a project area committee is not necessary
and authorizing the City Manager or his designee to consult with residents, business owners,
and community organizations within the Redevelopment project concerning the proposed
Market Street Redevelopment Plan Amendment.
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Donation of Materials - Transfer Station d~~p-offs
(S~020-650)
It is the recommendation of the Assistant City Manager that the City Council authorize staff
to donate products dropped off at the Transfer Station to non-profit organizations for
charitable purposes if the items cannot be sold at auction, in order to divert waste from the
landfill.
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Lease and Permit - Redding Air Service
(C-070-100 & A-090-100)
It is the recommendation of the Support Services Director that the City Council approve the
Hangar and Ground Lease Agreement with Redding Air Service for an aircraft hangar and
an aircraft parking area located at 6831 Airway A venue at the Redding Municipal Airport.
The lease is for a term of five years commencing March 1,2002 through February 28,2007,
with two five-year lease renewal options, in the amount of $657 monthly for the first nine
months, to increase to $1,157 per month thereafter, and effective March 2003, a 3 % increase
annually.
Surrender of Leasehold - Paul Barth & Associates
(C-070-100 & A-090-100)
It is the recommendation of the Support Services Director that the City Council approve the
Surrender of Leasehold with Paul Barth & Associates, effective February 1,2002, for the
office facility located at 3740 Flight Avenue at Redding Municipal Airport, subject to Mr.
Barth satisfying the conditions of the Surrender of Leasehold Agreement.
Renewal of License Agreement - Shasta Growers Association
(C-050-025)
It is the recommendation of the Support Services Director that the City Council approve the
renewal of the License Agreement with Shasta Growers Association for use of a portion of
the Civic Center campus for a Farmers' Market on Saturday mornings, with automatic
renewal each year and a IS-day cancellation notice by either party.
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Resolution - Approving application and accepting grant funds from State Department of
Parks & Recreation
(G-100-I70 & P-050-700-600)
It is the recommendation of the Community Services Director that Resolution No. 2002-31
be adopted, a resolution of the City Council of the City of Redding approving application for
grant funds for a portion of Shasta County's share of the Per Capita Grant Program from the
California Department of Parks & Recreation under the Safe Neighborhood Parks, Clean
Water, Clean Air, and Coastal Protection Bond Act of2000 (Proposition 12) in the amount
of $355,000 for the Redding Aquatic Center (Plunge); and authorizing the City Manager to
execute and submit all documents necessary for completion of the project.
Resolution - Amending City Council No. 408 - Investment Policy
(A-050-060-555)
It is the recommendation of the City Treasurer that Resolution No. 2002-32 be adopted, a
resolution ofthe City Council of the City of Redding amending Investment Policy No. 408,
for the purpose of clarification and conformance in the investment of City funds. The
amendment will allow the sale of corporate medium term notes as soon as reasonably
possible after those corporate credit ratings fall below single "A" status.
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Grant Application - U.S. Department of Justice
(G-100-070 & P-150-150)
It is the recommendation of the Chief of Police that the City Council approve submittal of
a grant application to the U.S. Department of Justice in the amount of$Il,175; 50% of the
purchase price of 48 sets of body armor at $465 per set for Redding Police Officers at a cost
of$22,350. The City will be responsible for the remaining $11,175.
Resolution - Approving Standard Agreement No. 01-011-187 with Peace Officer Standards
and Training (POST); and
Resolution - Accepting and appropriating POST Program revenue
(P-150-l50 & B-130-070)
It is the recommendation of the Chief of Police that Resolution No. 2002-33 be adopted, a
resolution of the City Council of the City of Redding approving entering into Standard
Agreement No. 01-011-187 with the State of California Commission on Peace Officer
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Standards and Training (POST) for regional trai~ing on the Force Option Simulator, for the
term of July 1, 2001, through June 30,2002, not to exceed $48,600 for Redding Police
Officers and regional law enforcement agencies; and authorizing the Mayor to sign the
Agreement. The city will agree to train up to 600 students in a four-hour Force Option
course, at a cost not-to-exceed $81 per student. The funds will be used to offset the Police
. Department's costs to maintain the Force Option equipment and overtime expenses incurred
by the instructors. The contract is renewable on an annual basis.
It is further recommended that Re$olution No. 2002-34 be adopted, a resolution of the City
Council ofthe City of Redding approving and adopting the 38th Amendment to City Budget
Resolution No. 2001-104 recognizing $48,600 in additional revenue and appropriating
$48,600 to provide Force Option Training for Fiscal Year 2001-02.
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Grant Application - School Community Policing Partnership Program with Turtle Bay
School
(G-100-170 & P-150-150) .
It is the recommendation of the Chief of Police that the City Council approve the partnership
with the Redding School District (District) to obtain grant funding to enhance services for
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at-risk youth through the School Community Policing Partnership Program in an amount of
$100,000 annually for three years to provide an additional Police Officer position dedicated
as a School Resource Officer at Turtle Bay School.
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Reimbursement for oversizing waterline - Redding Properties, L.P.
(A-070-300 & S-101-041)
It is the recommendation of the Development Services Director that the City Council
authorize payment of$20,252.97 to Redding Properties, L.P., for oversizing the water main
in Pacific Heights Subqivision, Unit 3 (aka Silver Creek Estates S-5-97), located east of
Shasta View Drive and west of Good water Avenue as required in the Conditions of Approval
for Tentative Subqivision Map S-5-07.
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Resolution - Changing the Authority to Accept Easements on Parcel Maps
(C-070-01O)
It is the recommendation ofthe Development Services Director that Resolution No. 2002-35
be adopted, a resolution of the City Council of the City of Redding changing the authority
from the Public Works Director and authorizing the City Engineer or the Director of
Development Services to accept easements offered for dedication on parcel maps.
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Notice of Completion - Bid Schedule No. 3492, Seismic retrofit of Olney Creek Bridge at
Girvan Road . .
(B-050-020 & S-070-050)
It is the recommendation ofthe Development Services Director that Bid Schedule No. 3492
(Job No. 9317), Seismic Retrofit of Olney Creek Bridge at Girvan Road, awarded to Dunton
Construction, Inc., be accepted as satisfactorily completedanq the City Clerk be authorized
to file a Notice of Completion. Final contract price is $114,170.25.
Resolution - Accepting a ten-foot Drainage Easement Dedication, Country Club Manor
Subdivision
(C-070-010)
It is the recommendation of the Development Services Director that Resolution No. 2002-36
be adopted, a resolution of the City Council of the City of Redding accepting for public use
the ten-foot drainage easements dedicated on Parcels 18 and 19 of Tract No.1 039, Country
Club Manor Subdivision, for Davies and Wheeler, recorded June 23, 1964 Volume 12 of I
Maps Page 39, Shasta County Records; and directing the City Clerk to record said easements.
Notice of Completion - Bid Schedule No. 3442, Traffic Signal Installation at Cypress and
Akard Avenues
(B-050-020 & T -080-700)
It is the recommendation of the Development Services Director that Bid Schedule No. 3442
(Job No. 2149), Traffic Signal Installation at Cypress and Akard Avenues, awarded to Ron
Hale Construction, be accepted as satisfactorily completed and the City Clerk be authorized
to file a Notice of Completion. Final contract price is $299,784.36.
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Resolution - Summarily vacating road right-of-way at the southwesterly end of Riverside
Drive
(A-01O-040)
It is the recommendation of the Development Services Director that Resolution No. 2002-37
be adopted, a resolution of the City Council of the City of Redding summarily vacating
portions on the Map ofTobiasson Subdivision, Unit 2, recorded in Book 8 of Maps at Page
13, Shasta County Records, 13, (shown on said Map as Cul-de-Sac at the southwesterly end
of Riverside Drive, aka Island Drive [A-4-0 1 D. Property owners Alvin Ross and Gerald
Noakes, et aI, requested the summary vacation of the cul-de-sac because the street is now a
through street and portions of the right-of-way have never been used for the dedicated
purpose. A five-foot public-service easement adjacent to the new right-of-way line has been
retained by the City.
MOTION: Made by Council Member McGeorge, seconded by Council Member
Pohlmeyer, that all the foregoing items on the Consent Calendar be approved and adopted
as recommended, with the exception of the item(s) approved by separate vote as indicated
above. The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Memb~rs - McGeorge, Pohlmeyer, Stegall, and Cibula
Council Members - None
Council Members - None
Council Membe~s - ,Kight
Resolution Nos. 2002-26,2002-28, 2002-29, 2002-30, 2002-31, 2002-32, 2002-33, 2002-34,
2002-35,2002-36, and 2002-37 are on file in the Office of the City Clerk.
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UPDATE ON MAJOR PROJECTS - National Pollutant Discharge Elimination System
(NPDES) Permit Strategy; and
GRANT APPLICATION - State Water Resources Control Board
. {E-120-500 & G-100-070) .
Development Services Director Hamilton highlighted the Report to Council dated February
13,2002, explaining that the National Pollutant Discharge Elimination System (NPDES) is
a system of permits required under the Federal Water Pollution Control Act to reduce or
eliminate pollutant discharge to water. He noted that Phase I of the NPDES Stormwater
program was implemented in 1990 by the U.S. Environmental Protection Agency (EP A) and
requires urban areas with populations greater than 100,000 or construction activities larger
than five acres to obtain a NPDES Stormwater Permit. He related that in 1999, new
regulations governing Phase II were published and the City of Redding was specifically listed
as a participant of the NPDES Stormwater Permit program.
Mr. Hamilton related that NPDES requires that the City submit an annual permit fee and
develop a comprehensive stormwater management plan with a minimum of six control
measures including public education and outreach, public involvement and participation,
illicit discharge detection and elimination, construction site stormwater runoff,
postconstructiQn stormwater management and pollution prevention, and good housekeeping
for municipal operations. Mr. Hamilton advised that the application for the NPDES
Stormwater Permit and the Stormwater Management Plan must be submitted to the
California State Water Resources Control Board (SWRCB) no later than March 2003, with
';)omplete implementation within five years.
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Mr. Hamilton explained that the permit can be submitted by a single governing entity or by
a group of contiguous urban entities such as the cities of Redding, Shasta Lake, and
Anderson, and the County of Shasta, via a memorandum of understanding or a joint powers
authority. He noted that the Regional Water Quality Control Board expressed a strong
interest in having the four urban areas join together as co-permittees and, although Shasta
County feels the time constraints are insufficient to properly develop a regional co-permittee
group, the cities of Anderson and Shasta Lake have expressed interest.
Mr. Hamilton pointed out that although the NPDES permit process is an unfunded
regulation, funding could be procured through special taxes, parcel fees, benefit assessments,
utility fees, general funds, grants for specific components, or any combination thereof. In
addition, the SWRCB is administering a $10 million Proposition 13 grant program in
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cooperation with CALFED to improve drinking water in the Sacramento and San Joaquin
Delta areas. As the largest urban area in the Sacramento River watershed north of the Delta,
the City of Redding qualifies for participation in the grant program. He noted that during
Phase I, municipalities found that costs were approximately $2 to $3 per capita.
Associate Civil Engineer Braithwaite gave a Powerpoint presentation illustrating various
steps the City has undertaken to ensure water quality and stormwater controls for the
Sacrame'nto River. He further related thl:!-t the City has developed many "Best Management
Practices" (BMPs) for water quality and stormwater control.
Mayor Kight arrived at 7:25 p.m.
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Mr. Hamilton explained that because there does not appear to be enough information or time
to properly pursue a regional effort, staff recommends that the City Council approve an
application for nonpoint source pollution control grant funding through the CALF ED
Drinking Water Quality Program and a "stand-alone" NPDES Phase II stormwater permit.
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Council Member Pohlmeyer expressed support for th~ regional co-permittee concept, but had
concerns regarding liability. Mr. Hamilton responded that there was insufficient information
to determine potential liability for the City in the event pollution was caused by another
agency. He reiterated that there was insufficient,tiq1e to research various legalities, develop
a memorandum of understanding with the other agencies, and submit the permit in a timely
manner.
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Council Members Pohlmeyer and Cibula strongly urged shared information with other
agencies, even if the City applies f()r a "stand-alone" permit at this time.
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MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Cibula,
approving an application to the State Water Resources Board for nonpoint source pollution
control grant funding through the CALFED Drinking Water Quality Program; authorizing
staff to purse a "stand-alone" Natiop.al Pollutant Discharge Elimination System (NPDES)
Phase II stormwater permit; and directing staff to continue to participate in an areawide task
force with the other local agencies to develop uniform strategy and goals. The Vote:
A YES: Council Members - Cibula, McQeorge, Pohlmeyer, Stegall, and Kight
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
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LOCATION OF A NEW CITY/COUNTY LIBRARY
(L~050) .
City Manager Warren recalled that th~ City Council determined to set aside the area of the
former Fire Department Administration Building on Parkview Avenue as the proposed site
for the new library. In addition, the City Council and the community imposed certain
parameters for the construction site including preserving as many trees as possible,
maintaining the softballlbaseball fields, preserving existing and ensuring adequate additional
parking, and providing for future expansion of Tiger Field. Unfortunately, these parameters
have proven to be problematic in juxtaposition to provide adequate landscaping, tree
preservation, setbacks, and preservation of some recreational program buildings.
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Mr. Warren related that while the California Department of Forestry (CDF) site located at
875 Cypress Avenue appeared promising, CDF is unable to finance a move to another <'
location for approximately four years, and the cost to purchase the property is prohibitive.
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Mr. Warren observed that library architect, Critical Solutions, Inc., suggested that an
alternate site may be South City Park in the area of the tennis courts. The site satisfies the
parameters set for the project and would preserve two of the recreation buildings.
He explained that the tennis courts, which are in desperate need of repair and upgrade, could
be relocated to the Civic Center campus or possibly to another park such as Caldwell,
Enterprise, Cascade, or the Sports Complex. He opined that relocation of the tennis courts
is perhaps the least controversial of the options and noted that relocation costs are estimated
between $200,000 to $225,000 and would allow preservation of existing parking.
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Mr. Warren recommended that the City CounCil approve the tennis court location at South
City Park as a potential site for the new library, wit4 a final determination to be made at a
future Council meeting after preparation of plans. He further recommended that the City
Council refer the location and number of replacement tennis courts determination to the
Community Services Advisory Committee. Mr. Warren stressed that specific site
designation for the new library is necessary for submittal of the grant request documents.
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Council Member Cibula did not oppose relocation of the tennis courts, but was adamant that
South City Park be preserved and that the park -like atmosphere surrounding the tennis courts
be maintained wherever they are relocated. He observed that the basketball court next to the
tennis courts will have to be relocated as well.
Council Member Cibula indicated that prior to making a decision, he will require additional
information comparing the proposed sites to det~rmine which will provide the greatest
benefit to the community.
Council Member Stegall supported relocating the tennis courts to the Civic Center campus.
Council Member Pohlmeyer and Mayor Kight believed the tennis and basketball courts
should be relocated within the South City Park area, and observed that upgrading and
relocating the tennis courts could be accomplished with greater ease than locating another
optimum site for the library.
Michael Moynahan, Marj Cantrell, and Michael Bertagna opposed locating the library in
South City Park stating that the Park and related amenities are in continual use and urged
Council to consider another location.
Duane Lyon, representing New Library Now!, thanked the City Council for its support to
provide land for the new library. He stressed the importance of a speedy resolution to this
issue and opined that there is room for both the library and tennis courts at the location.
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It was the consensus of the City Council to defer the matter and direct staff to provide a
"footprint" of the new site for the library including relocation of the tennis courts and the
basketball court within South City Park, preservation ofthe park-like atmosphere around the
tennis courts, and accurate cost estimates for replacement of the tennis courts and basketball
court.
JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT
AGENCY
At the hour of 8:10 p.m., Chair Cibula convened the Special Meeting of the Redding
Redevelopment Agency for a joint meeting with the City Council.
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RESOLUTION - Approving the Relocation Plan for the Parkview Neighborhood
Revitalization Project in the Market Street Redevelopment Project Area
(R-030-100-055)
Deputy City Manager Starman presented the Report to City. Council and Redding
Redevelopment Agency (Agency) dated February 11, 2002, recalling that the Agency
adopted the Parkview Neighborhood Strategic Revitalization Plan and the Parkview Action
Plan (Revitalization Plans) in January 2001. The Plans included the Parkview Mixed-Use
Project, the Junior-Leland Residential and Park Project, and the Scattered Site Infill
Residential Project.
Mr. Starman recalled that in August 2001, the Agency retained Pacific Relocation
Consultants (PRC) to provide real estate and relocation services associated with the projects,
including a relocation plan to satisfy State law requirements with regard to displacement of
more than 15 households. He noted the PRC' s Relocation Plan identified 68 households and
one neighborhood market in the Parkview Neighborhood which will be displaced at a cost
of $968,557. However, staff anticipates 50 displacements at a cost of approximately
$640,000 ($130,000 above the amount originally budgeted which will be funded through
Housing Set-Aside funds). He added that the Parkview Relocation Committee has reviewed
the Plan and recommends approval. He pointed out that it is anticipated the residents will
be displaced for approximately six to seven months.
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Mr. Starman recommended that the Agency approve the Relocation Plan for the Parkview
Neighborhood R,evitalization Project prepared by Pacific Relocation Consultants (PRC).
Mr. Starman also recommended that the City Council adopt a resolution approving the
Relocation Plan for the Parkview Neighborhood Revitalization Project in the Market Street
Redevelopment Project Area prepared by PRe.
Mayor Kight expressed concern that few vacant rental units are available in the price range
of those being displaced and more motellhotel units are being closed by Code Enforcement
exacerbating the problem and increasing rents. Mr. Starman concurred, but added that 200
housing units have been created by the City and with the completion of many projects, I
additional housing units will be gained.
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MOTION: Made by Agency MembercPohlmeyer, seconded by Agency Member Stegall,
approving the Relocation Plan for the Parkview Neighborhood Revitalization Project in the
Market Street Redevelopment Project area prepared by PRC with inclusion of comments
received to date and applicable responses. The Vote:
A YES: Agency Members: Kight, McGeorge, Pohlmeyer, Stegall, and Cibula
NOES: Agency Members: None
ABSTAIN: Agency Members: None
ABSENT: Agency Members: None
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MOTION: Made by Council Member McGeorge, seconded by Council Member Cibula,
adopting Resolution No. 2002-38, a resolution of the City Council of the City of Redding
approving the Relocation Plan for the Parkview Neighborhood Revitalization Project in the
market Street Redevelopment Project Area prepared by PRC with inclusion of comments
received to date and applicable responses. The Vote:
A YES: Council Members - Cibula, McGeorge, Pohlmeyer, Stegall, and Kight
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
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Resolution No. 2002-38 is available in the Office of the City Clerk.
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At the hour of 8:18 p.m., Chair Cibula adjourned the Special Meeting of the Redding
Redevelopment Agency.
ACOUISITION OF PROPERTY - 9798 and 9820 Old Oregon Trail
(C-070-010)
Assistant City Manager Perry explained that two parcels located on Old Oregon Trail (9798
and 9820) will provide an excellent second access for the Sports Complex project. He
advised that Ms. LeDuff, owner of the two parcels, has agreed to sell the property for
$151,000.
Mr. Perry recommended that the Mayor be authorized to sign the Purchase Agreement on
behalf of the City.
Marj Cantrell, Redding resident, expressed concern for the safety of children and other
pedestrians traveling to and from Sports Complex events. She urged acceleration of the
Shasta Redevelopment Project road widening in that area to mitigate the safety issue.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall, I
authorizing the Mayor to sign the Purchase Agreement on behalf of the City for property
located at 9798 and 9820 Old Oregon Trail in the amount of$151,000. The Vote:
A YES: Council Members - Cibula, McGeorge, Pohlmeyer, Stegall, and Kight
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
REFINANCING FOR ELECTRIC UTILITY - Redding Power Plant Unit 5, 1992A and
1993A Electric Utility Debt, and Implement New Bond Covenants
(D-050-250-005/D-050-250-006/E-120-150-675)
Electric Utility Director Feider provided an overview of the Report to Council dated
February 11, 2002, recalling that on January 15,2002, the City Council approved a Financing
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Team (Team) comprised of Tom Graves- (Redding Electric Utility's Financial Manager),
Steve Strong (City Finance Officer), Allyn Feci Clark (City Treasurer), Virginia Rutledge
(Financial Advisor, Public Financial Managementj;- Dan Hartman (Investment Banker,
Solomon Smith Barney, and Rick Hiscocks (Bond Counsel, Orrick, Herrington, and
Sutcliffe) and authorized development of a financing proposal for Generating Unit No.5
(Unit 5) at the Redding Power Plant and refinancing for existing Redding Electric Utility
(REU) bonds.
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Mr. Feider advised that the Team developed three objectives regarding the proposal:
1. Maintain REU reserves at a healthy level
2. Achieve a savings on interest rates
3. Achieve flexibility for bond covenants
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He highlighted the proposal developed by the Team as follows:
1. Finance 50% of Unit 5's costs (previously funded through REU reserves) and
reimburse REU reserves by issuing $22 million in bonds funded by REU equity
allowing REU to maintain a sufficient cash reserve. The City Council previously
passed a reimbursement resolution allowing accumulated capital expenditures of
REU to be reimbursed through issuance of bonds.
2. Refinancing/restructuring existing 1993A bonds at the current low interest rates with
a savings of$I million over 20 years, using an interest rate exchange structure, which
will achieve approximately $3.5 million in present value savings.
3. Refinance approximately 50% of the remaining 1992A Generation bonds for a
savings of approximately $1 million in arbitrage earnings.
4. Use of existing Rate Reduction Fund proceeds to cash defease the other 50% of
REU's existing 1 992A Generation bonds which will allow REU to implement the
proposed new bond covenants.
5. Adoption of new bond covenants that are more reflective of today' s energy industry
because they will provide enhanced operating flexibility and room to respond to
changes iJ! the business environment. Replacing I.Ox and I.2x requirements with a
single covenant that will allow the use of reserves to meet 1. lOx current year
expenditure test, such that current year revenues could be less than 1. Ox expenditures
without causing a rate increase; lower Debt Service Fund requirements; and ability
to issue additional debt under less strict requirements (1.1 Ox coverage after issuance.
of additional debt).
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Mr. Feider added that the cost of the proposed changes will be 1 % to 2% of the overall value
of the aggregate financing.
Mr. Feider recommended that the City Council approve preparation offinal bond documents
necessary to finance 50% of Unit 5, reimburse REU's reserves for out-of-pocket costs
already paid for Unit 5 in excess of 50% of its cost, refinance REU's existing 1993A
distribution bonds and half of the 1992A Generation bonds for savings, and restructure
REU's bond covenants for operating and financial flexibility. He advised the Financing
Team will return in approximately one month for Council approval of the bond documents.
Mayor Kight explained that a Special City Council Meeting held earlier today addressed
Council's questions and concerns regarding this item.
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Council Member Cibula stressed that changing and relaxing the bond covenants does not
mean that the City has changed its conservative and careful approach to financing.
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MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Cibula,
approving preparation of final bond douments necessary to: finance 50% of Unit 5;
reimburse REU's reserves for out-of-pocket costs already paid for Unit 5 in excess of 50%
of Unit 5's cost; refinance REU's existing 1993A distribution bonds and half of the 1992A
Generation bonds for savings; and restructure REU's bond covenants for operating and
financial flexibility. The Vote:
AYES: Council Members: Cibula, McGeorge, Pohlmeyer, Stegall and Kight
NOES: Council Members: None
ABSTAIN: Council Members: None
ABSENT: Council Members: None
2/19/2002
44
OUTDOOR BURNING
(F-210 & S-020-550)
Deputy Fire Chief Becker reported that the California Environmental Protection Agency Air
Resources Board is proposing to ban outdoor burning of paper products and garbage by July
2003, dl,le to the emission oftoxic pollutants.
Mr. Becker explained that current City regulations allow "backyard" burning with a permit
from November 1st through April 30th of each year. However, this burning contributes to
periodic non-attainment of Particul~te levels (air pollution) within Shasta County, and should
Shasta County be determined a non-llttai~ent area by the Air Resources J;3oard, backyard
burning would be prohibited entirely. He noted that the proposed changes are also intended I
to produce more usable compost and recyclable material, and improve air quality in the area.
He pointed out that the Fire Department issues 2,000 burn permits annually for a revenue of
approximately$16,000.00, and that amount will be substantially reduced by implementation
of lesser burn days or total elimination of burning. .
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Mr. Becker advised that the restrictions will apply only to backyard burning; whereas outdoor
burning for fire hazard reduction mitigation and land clearing operations, through the
established permit process at the Fire Department, will not be affected.
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Mr. Becker recommended that in an effort to reduce the amount of days particulates may
produce a health hazard and nuisance, burning be restricted to certain months, such as
November and April, beginning November ~002. He suggested that the City Council may
wish to discuss continuing further limitations or eliminating backyard burning after April 30,
2003.
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Council Member McGeorge expressed concern that in the event of an extremely rainy
November, residents could be precluded from clearing their property. He opined that the
specific month restriction may be too limiting and suggested a 60-'day period to extend
beyond November and April.
Mr. Becker explained that fire season begins May 1 st of each year which prohibits extension
of permitted bum days beyond April 30th.
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Council Member Stegall suggested phasing elimination of backyard burning as soon as
practical and believed that people's tolerance to particulates is less when they are exposed
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to burning over longer periods of time.
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Mayor Kight concurred with a ph~sing approach in order to allow citizens an opportunity to
abate excess vegetation.
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Marj Cantrell, Redding resident, expressed opposition to the proposal, in that she has several
large parcels to clear and utilizes backyard burning each year. She suggested that the issue
be postponed and the public given more notice prior to implementation.
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It was the consensus of the City Council to defer the item, directing staff to provide a more
flexible proposal; and i.e., ample opportunity to perform fire hazard reduction mitigation
measures on large parcels.
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MID- YEAR BUDGET REPORT; and
RESOLUTION - Amending the General Fund Budget
(B-130-070) I
Deputy City Manager Starman provided an overview of the Report to Council dated February
7, 2002, incorporated herein by reference, stating that the Mid-Year Budget Report focuses
on the General Fund, but includes the City's enterprise funds such as Water, Wastewater,
Storm Drainage, etc. He reported that overall expenditures were as anticipated, if not lower,
except for the Fire Department and Reprographics Division, due to personnel costs.
Mr. Starman stated that General Fund revenue to date totals $21,742,963 which is
$2,857,241 or 15.1% above staffs originaL cash flow projection. General Fund
appropriations through December 31,2001, total $47,220,680 an increase of$3,639,040 or
8.3% since the budget was adopted by the City Council on June 26,2001.
2/19/2002
45
Mr. Starman recommended the following adjustments be made to revenue projections in
order to more accurately reflect current activity for f'i.scal Year 2001-02:
1. $880,000 - increase Sales Tax revenue;
2. $30,000 - increase Transient Occupancy Tax (one-time basis), and
$15,000 - increase Tourism/Convention Fund transfers from the General Fund;
3. $50,000 - increase Other Tax revenue (one-time basis);
4. $260,000 - increase Motor Vehicle In-Lieu Fees (one-time basis);
5. $100,000 - increase Licenses and Permits revenue (one-time basis); and
6. $700,000 - increase transfers from the Capital project Fund to the General Fund to
be used to pay offthe internal Civic Center loan.
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Mr. Starman also recommended that the following changes be included in the Ten-Year Plan:
1. . Increase 2001-02 sales tax revenue $880,000. The Ten-Year Plan uses this new
estimate along with the prior two years actual sales tax revenues to project future
sales tax revenues.
2. Increase 2001-02 building related revenues by $100,000.00, Transient Occupancy
Tax by $30,000.00, Other Taxes by $50,000 and Motor Vehicle In-lieu Tax by
$260,000.00, all on a one-time basis.
3. Increase beginning cash by $2.6 million to reflect the final amount from Fiscal Year
ended 2001.
4. Increase expenditures to reflect the pay-off of the $2,000,000 internal loan for the
Civic Center.
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He observed that the Finance Division estimates that the General Fund will end Fiscal year
2001-02 with a reserve of 19% and the General Fund is not projected to fall below 5.4%
during the 10-year forecast period.
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Mr. Starman recommended that the City Council accept the Mid-Year Budget Report for
Fiscal Year 2001-02 and that a resolution be adopted approving increased appropriations by
$1,999,245 and revenue projects by $1,320,000 in various funds for Fiscal Year 200'1-02 and
decreased appropriations by $145,000 in the General Fund for Fiscal Year 2002-03; and
approve the increased expenditures to reflect the pay-off of the $2,000,000 internal loan for
the Civic Center.
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MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
accepting the Mid-Year Budget Report for Fiscal Year 2001-02; adopting Resolution No.
2002-39, a resolution of the City Council of the City of Redding approving and adopting the
37th Amendment to City Budget Resolution No. 2001-104: 1) increasing appropriations by
$1,999,245 and revenue projections by $1,320,000 in various funds for Fiscal Year 2001-02;
and 2) decreasing appropriations by $145,000 in the General Fund for Fiscal year 2002-03.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
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APPROVED
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Council Members:
Council Members:
Council Members:
Council Members:
Cibula, McGeorge, Pohlmeyer, Stegall and Kight
None
None
None
Resolution No. 2002-39 is on file in the Office ofthe City Clerk.
ADJOURNMENT
There being no further business, at the hour of8:50 p.m., Mayor Kight declared the meeting
adjourned.
2/19/2002
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Mayor
ATTEST:
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City Clerk r - -ej