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HomeMy WebLinkAboutMinutes - City Council - 2002-03-19 55 City Council, Regular Meeting . Civic Center Council Chambers 777 Cypress Avenue,. Redding, California March 19,2002, 7:00 p.m. The Pledge of Allegiance to the Flag was led by Council Member Cibula. I The Invocation was offered by Pastor Fred Vilasenor, New Life Church. The meeting was called to order by Mayor Kight with the following Council Members present: Cibula, McGeorge, and Stegall. Council Member Pohlmeyer was absent. Also present were City Manager Warren, Assistant City Manager Perry, Deputy City Manager Starman, Assistant City Attorney Tranberg, Development Services Director Hamilton, Police Chief Blankenship, Fire Chief Gunsauls, Deputy Fire Chief Kaylor, Administrative Services Director Bachman, Support Services Director Kersten, Community Services Director Niemer, Airports Manager Dinger, City Clerk Strohmayer, and Executive Secretary Stribley. Approval of Minutes - Regular Meeting of March 5, 2002, and Special Meeting of March 5, 2002. I Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable'Register No. 17, check numbers 298366 through 298830 inclusive, in the amount of$2,353,811.33, for the period of March 1,2002, through March 14,2002; Wire Transfers for the period of March 1,2002, through March 15,2002, in the amount of$I,557,048.89; and Payroll Register No. 18, electronic deposit transaction numbers 104436 through 105074 and check numbers 487629 through 487877 inclusive, in the amount of$I,658,223.85, for the period of February 17, 2002, through March 2,2002, be approved. . TOTAL: $5,569,084.07 Ordinance - Repealing Redding Municipal Code Section 2.60 - Senior Citizens Facility Advisory Committee (B-080-450) It is the recommendation of the City Clerk that Ordinance No. 2292 be adopted, an ordinance ofthe City Council of the City of Redding repealing Redding Municipal Code Section 2.60, the Senior Citizens Facility Advisory Commission, sunsetting the Senior Citizens Facility Advisory Commission; endorsing the creation of a new committee under the umbrella of the Senior Citizens' Club of Shasta County (SCC) entitled Senior Citizens Facility Advisory Committee; and endorsing the proposed amendment to the SCC Bylaws. I Amended Agreement - Diaz and Associates (E-050 & L-01O-075) It is the recommendation of the Economic Development Director that the City Council approve modifYing the Scope of Services with Diaz and Associates to include further traffic- related studies for the Stillwater Business Park Environmental Impact Report (EIR) in an amount not-to-exceed $40,900. The amended Scope of Services may delay the EIR approximately 45 days. Assignment of Funds - 2002 Single-Family Private Activity Bond "Fair Share" Allocation (R -030-100-400) It is the recommendation of the Dep~ty City Manager that the City Council approve submission of a letter to the California Rural Home Mortgage Finance Authority (Cal Rural) and the California Debt Limit Allocation Committee (CDLAC) assigning the City's 2002 Single-Family Private Activity Bond "Fair Share" Allocation to Cal Rural and providing a sUmmary ofloan activity within the City during 2001 relative to Cal Rural's "Rural Gold" program. The "Rural Gold" program provides home loans for low- to moderate-income first- time buyers. 3/19/2002 56 License Agreement - Olympic Security Service at Redding Municipal Airport (C-070-010 ~ A-010-100) It is the recommendation of the Support Services Director that the City Council approve the License Agreement with Olympic Security Service for space within the Redding Municipal Airport terminal building to pr,ovide passenger and baggage screening services. The Agreement is effective March 20, 2002, on a month-to-month basis with rent in the amount of $691.93 per month, until such time" as the new federal agency , Transportation Security Association, assumes responsibility for passenger and baggage screening. Services Contract - Shutt Moen Associates (A-090-IOO) , I It is the recommendation of the Support Services Director that the City Council approve the services contract with Shutt Moen Associates to provide design and engineering services, . project inspection, and construction management for capital projects at the Redding Municipal Airport in the estimated amount of$277,000 and authorize the Mayor to execute same. License Agreement - Experimental Aircraft Associ(J.tion and Hillside Aviation, Inc. for "Aviation Day 2002" at Benton Airpark (A-090-020& A-070-080) It is the recommendation of the Support Services Director that the City Council approve the License Agr~ement with Experimental Aircraft Association (EAA) North Valley Chapter 157 ~d Hillside Aviation, Inc., for use of a portion of Benton Airpark to conduct "Aviation Day 2002" on June 16, 2002, from 7 :00 a.m. until 12 :00 p.m., and authorize the Mayor to execute same. Air Show 2002 - Redding Exchange Club; License Agreement - Redding Exchange Club; and Resolution - Prohibiting parking at Air Show 2002 (A-090-100 & P-030-250) It is the recommendation of the Support Services Director that the City Council approve the request by the Redding Exchange Club to hold "Air Show 2002" at the Redding Municipal Airport, and approve the License Agreement for use of the Airport on May 4 and 5, 2002. I It is furth~r re~ommend.ed th(J.t Resolution No. 2002-44 be adopted, a resolution of the City Council of the City of Redding prohibiting parking ~t "Air Show 2002" on May 4 and 5, 2002, at the Redding Municipal Airport on Airport Road from Rancho Road to Meadow View Drive, and on Old Oregon Trail from Rancho Road to the North Gate ofthe Redding Municipal Airport from 7:00 a.m. to 7:00 p.m. Resolution - Authorizing submittal of a Used Motor Oil Recycling Block Grant (G-lOO-I70/P-I50-050-500/S-020-550) It is the recommendation of the Assistant City Manager that Resolution No. 2002-45 be adopted, a resolution of the City Council of the City of Redding authorizing submittal of a Used Motor Oil Recycling Block Grant - Eighth Cycle - application to California Integrated Waste Management Board, for funds in the amount of$37,526 from fiscal years 2002-03 to 2004-05 provided by the California Oil Recycling Enhancement Act to augment the City's Used Motor Oil Colle~tion and Recycling Program. Purchase Agreement - Acquisition of property on west side of Abernathy Lane owned by Kenneth and Carol Knighten Resolution - Appropriating fun4s for acquisition of property (C-070-01O) It is the recommen4ation of the Assistant City Man(J.ger that the City Council approve an agreement to purch~se 14.33 acres from Kenneth and Carol Knighten located on the west side of Abernathy Lane in the amount of $365,000 for future expansion of the City Corporation Yard and Transfer Station, subje~t to the following conditions: 1. The acquisition is consistent with the General Plan; 2. The acquisition does not have a significant impact on the environment; 3. There are no hazardous soils or materials on the property; 4. The property is free and clear of all liens at the close of escrow; I and authorize the Mayor to execute said agreement. 3/19/2002 '. -.. :.,~..~- . ."' ..... . I" ",;~ l 57 It is further recommended that Resolution No': 2002-46 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 43fdamendment to City Budget Resolution No. 2001-104 appropriating $380,000 for Solid Waste Utility land acquisition on Abernathy Lane for Fiscal Year 2001-02, including $15,000 for title and escrow fees for said acquisition. . I MOTION: Made by Council Member Stegall, seconded by Council Member McGeorge, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. The Vote: AYES: Council Members - Cibula, McGeorge, Stegall, and Kight NOES: Council Members - None . ABSTAIN: Council Members - None ABSENT: Council Members - Pohlmeyer Ordinance No. 2292 and Resolution Nos. 2002-44, 2002-45, and 2002-46 are on file in the Office of the City Clerk. UPDATE ON SENATE BILL 975 - PREVAILING WAGES FOR CERTAIN PRIVATE PROJECTS AND ASSEMBLY BILL 637 - HOUSING AFFORDABILITY DURATION PERIOD REQUIREMENTS (L-040-300) Deputy City Manager Starman reported that Senate Bill 975 (SB975) and Assembly Bill 637 (AB637) both effective January 1, 2002, will significantly impact the City's economic development, redevelopment, and housing programs. I SB975 pertains to a specific list of "prevailing wages" which the State requires public entities and private development to pay for projects which utilize public funding. The bill expands the definition of "paid for in whole or in part out of public funds" and now affects private projects previously exempt from paying prevailing wages. The definition now encompasses projects that receive waiver of development impact and permit fees, low interest loans, forgivable loans, and/or land "write downs" from public entities. SB975. requires 'payment of prevailing wages for most private projects constructed under an agreement with a redevelopment or other public agency providing some form of public agency assistance, with few exceptions. Mr. Starman cited several City and redevelopment programs likely impacted by SB975 such as the City's existing policy to waive traffic impact fees for all new industrial development, the Economic Development Program, housing programs, including the ability to provide low-interest loans or grants for affordable housing projects, the Storefront Improvement Program, and others. I Mr: Starman explaineq that AB637 affects affordability duration period requirements (the length of time housing units must remain in an affordable classification) for owner-occupied and rental units. Prior to AB63 7, owner-occupied units were required to remain affordable for 10 years and rental units for 15 years. However, the requirements are now 45 years for owner-occupied and 55 years for rental units. Additionally, AB637 restricts redevelopment agencies' use of set-aside funds stipulating they can no longer be used for activities not directly related to a specific housing project. This will have a significant impact on the City's Target Neighborhood Program including areas such as ParkviewILeland Avenues. Funds previously used to improve infrastructure such as curbs, gutters, and sidewalks in some of the older core neighborhoods will be eliminated. Mr. Starman opined that the changes will reduce affordable housing units and redevelopment projects throughout the State. In response to Mayor Kight regarding additional project costs in light ofthe new prevailing wage law, Mr. Starman explained that prevailing wage varies by trade and by project but typically could result in an increase of between 20% to 25%. This will have a significant impact on the development community and renders California less competitive with other states in providing financial assistance to future projects. No action was taken on this informational item. 3/19/2002 58 PUBLIC SAFETY PLAN (P-150) City Manag~r Warren recalled that the City Council at its regular meeting of March 5, 2002, determin~d the need for a fire station in the northeast area of the City. At that meeting, Fire Chief Gunsauls presente,d two options designed to better meet the needs of the City and place a fire station at Chum Creek Road near College View Drive. The City Council was interested in hearing more information on the phased approach (Option B) to enhance fire services in the City and directed staff t() develop a financial and implementation plan to integrate available resources identified in the General Fund 1 0- Year Financial Plan. The City Manager explained that the Fire Chief would review the plan and Administrative Services Director Bachman would discuss how implementa~ion of Option B could be accomplished I within the 1 0- Year Plan. Fire Chief Gunsauls outlined the benefits of Plan B which entailed opening a: fire station in the northeast portion of the community, closing Fire St,ation 3, ~d ad4ing nine fireman to augment the area around Fire Station 3 by placing the personnel at Fire St~tions 1, 2, and 4. Fire Chief Gunsauls pointed out that Option B is the best plan available given current financial circumstances, emphasizing that the proposed relocation of Station 3 to the northeast area is critical in 'order to provide the best response to the greatest number of residents throughout the City. Administrative Services Director Bachman explained that staffhas developed a financial and implementation plan to integrate available resources identified in the General Fund 10- Year Financial Plan. Mr. Bachman stated thl;lt this was accomplished in conjunction with the development of a Public Safety Master Plan. Mr. Bachman reviewed the priority list of Fire and Polic~ Department needs included in the Public Safety Master Plan as follows: the Fire nee,ds total $73 million with an additional $1.645 million ongoing annually; the Police Department nee~s total $24.8 million with an additional $1.225 million ongoing annually; and the Grand Total for both departments would be $32.1 million with an annual ongoing amount of $2.87 million. Mr. Bachman indicate4 that funding these needs will be a challenge dne to the lack of I available funding resources. He related that the City currently commits approximately 51 % , of the General Fl.llld budget to publi~ safety, and it is anticipat~d to increase to 57% in the next five to ten years, due almost solely to salary increases for police and fire personnel. The 10-Year Plan reserve is currently at 19% with a projected decline to 5.4% by fiscal year 2009-10, and he recalled the City Council's directive that the General Fund reserve not drop below 5% in anyone year within the 10- Year Plan. Even if all potential revenues were committed to public safety, Mr: Bachman explained that the need would still far exceed resources. Mr. Baclun,an listed potential funding resources over the next ten years totaling $10.95 million whi~h cou!d be diverted toward public safety needs as follows: 1) New personnel funding - $5.1 million; 2) M~seum funding set-aside - $3.2 million; 3) Capital Improvement contingency - $1.6 million; 4) Budget contingency - $800,000; and 5) General Fund reserve in excess of 5% - $250,000. Mr. Bachman emphasized that these potential resources provide unmet needs ,for all d~partments within the City, and any amount committed to one department essentially takes funds from another. He recommended not using Ml.lseum Funding which is set aside for Turtle Bay, but utilizing half of all the other potential resources to provide public safety with approximately $4 million in a~ditional fun4ing for the following expenditures: 1. 2. 3. 4. 5. 6. Fire safety equipment ($200,000) Fire Plans Examiner/Inspector 9 addi,tional firefighters New northel;lst fire station 3 additional police officers 2 additional police officers fiSCl;l1 year - 2001-02 fiscal year - 2001-02 fiscal y~ar - 2007-08 fiscal y~ar - 2007-08 fiscal year - 2009-10 fiscal year - 2010-11 I Mr. Bachman continued that funds could be set aside each year for General Fund debt service which will net $1 million in financing for a new fire station, although Redevelopment financing ~ay also be available. The $4 million in public safety needs can be met with 3/1912002 ~ ,~ I I I 59 , 'j existing resources, but grants, partnerships, and'unanticipated revenue such as increased sales tax could fund additional priority proj~cts, including modification of the Public Safety Plan, and increased spending for public safety needs. He also indicated that unanticipated revenue could result in early construction of Fire Station 8 and possible retention of Fire Station 3 at its present location, instead of hiring nine additional personnel. He suggested that staff provide Council with periodic progress reports regarding potential resources to accomplish this. Mr. Bachman stressed that there is no money budgeted for the new Library, which if the grant application is successful, could mean an additional $250,000 per year in expenditures. He concluded that resources are limited, and it is essential that the decisions made provide the best service to the largest populace throughout the City. City Manager Warren clarified that in order to accomplish Option B, each year of the 10- Year Plan expenditures would be greater than revenue in bringing down the 19% reserve to 5.4%. He said there are other needs besides Option B, previously identified, which do not include additional salary increases for police and fire over cost of living. Mr. Warren outlined three options and their implications for accomplishing the goals set forth in the Public Safety Master Plan as follows: 1. Cut other areas of the General Fund. This option is not realistic because it would require wholesale cuts thereby eliminating entire departments and would result in an extremely unbalanced delivery of services. In addition to Police and Fire, other services such as Parks, Planning, Finance, City Clerk, City Attorney, City Treasurer, Streets, are just as vital for a healthy well-balanced community. 2. Take the position that 57% of the General Fund is as much as the City can afford, and the Public Safety Master Plan or salary increases over and above cost-of- living would not be granted. This option would likely perpetuate the frustration and complaints that more equipment, facilities, manpower, and higher salaries are needed. 3. Explore the concept of revenue enhancement such as a sales tax. This would be a voter approved revenue enhancement such as a .25% sales tax increase which could generate more than $4 million in additional revenue each year. Up to half of the proposed revenue enhancements would be provided by non-Redding residents coming to Redding for tourism and shopping. F or the aforementioned reasons, City Manager Warren supported the third option of exploring a revenue enhancement as the more sound approach. He suggested that a committee be formed consisting of Fire and Police representatives, business leaders and citizens of the community to examine public safety needs, possible existing revenues, and, if necessary, revenue enhancements. Therefore, he recommended that the City Council approve the following actions: 1. Integrate recommended public safety enhancements into the next revision of the General Fund 1 0- Year Financial Plan. Specifically, this would be the money necessary to implement Option B. 2. Return to the next regular City Council meeting with a budget resolution adding a new Fire Plans Examiner/Inspector position and $200,000 for fire safety equipment in the current fiscal year. 3. As money is being set aside for Option B, which would include a fire station in the northeast portion of the City, the Fire Chief would be conducting public education to the residents in the area of Fire Station No.3. Further, staffwould track revenues to see if and how Fire Station No.3 could remain open at its present location while adding Fire Station No.8 in the northeast portion of the community. This option would be more expensive than Option B; and under this scenario, the nine additional fire personnel placed in Fire Stations 1, 2, and 4, would not be hired but instead, Fire Stations 3 and 8 would be staffed. 4. Contact Senator Johannessen's Office to have wording inserted into a bill authorizing 'a possible local ballot measure on a sales tax increase. Mr. Warren explained that 3/19/2002 60 this needed to be done in the month of April in order to access this legislative session. He assured that it would not commit the City Council but would merely be a place holder for possible consideration in 2003. 5. Establish a working committee consisting of the City Manager, Administrative Services Director, Police and Fire management and labor, business interests, and citizens to review needs, resources, and a potential sales tax increase. Mr. Warren said that if a saJ~s tax increase was a recommendation from the committee, he rec()mmend~d the following: 1. It not comeback to City Council until after the electric surcharge is eliminated; The committee include a sunset date of when the sales tax increase would end; Any increase be specified in some manner to be designated solely for police and fire master plans or e~ancements. I 2. 3. Council Member Stegall related that she had received inquiries regarding the proposed sales tax increase in juxtaposition with the City undertaking numerous capital projects such as the Plunge renovation, the Sports. Complex, and the new Library. Because the citizens wondered why funds for these projects could not be used for public saf~ty, she asked City Manager Warren to clarify their question. Mr. Warren responded that certain types of funds, such as enterprise funds are project specific and can only be expen~ed on projects which meet specific criteria. However, when using Gener~l Fund monies, at least four criteria are considered prior to project proposal: 1) need; 2) business opportunity (return on investment); 3) how the project will affect other departments or co~ts in the City; and 4) whether the project fits the overall goals/vision of the community to make it a more pleasant environment for residents and attract people and businesses to the City. Mr. Warren explained that the R~dding Plunge was built just after World II and its aging infrastructure and dilapidated facilities met the definition of need. This renovation project also qualifies as a business opportunity in that it will cost $5 million to renovate, but through grants and donations, only $2.7 million will be paid by the City, and $1 million of that amount will be offset by revenues, with a potential for future revenues. In addition, it will provide a recreation area for children and adults and advance the livability ofthe community. I Mr. Warren recalled that the Sports Complex has been proposed for almost ten years by two citizen committees and has been identified as a need in the community. He noted that as a business opportunity and an investment, it seemed advantageous to build a $16 million facility for an investment of only $3 million from the General Fund, $10 million provided through grants, and $3 million in Redevelopment funds. He continued that Big League Dreams will be responsible for maintenance which will save the City $250,000 per year, and the Sports Complex will have a revenue stream of $1.4 million over ten years. He expressed confidence that it will enhance the community as a whole. Mr. Warren stated that the Library was another project identified as a community need for many years. He advised that the City and County are preparing a grant application for State funding which will provide two-thirds of the amount needed to build a library. He explained . that State grant funds have not been available for the last 12 years, and it could be another 12 years before new funding opportunities reappear. In addition, citizens have formed a committee (New Library Now!) and said they would raise the balance ofthe money to build a new library. This means the City and County would only be responsible for operations or $250,000 per year of additional expenses. Again, as an investment opportunity it will cost the City relatively little to acquire a state-of-the-art library that will serve the community for the next twenty years and be an investment in the enlightenment of thousands in the county. I Twelve Redding residents, some of whom reside in the Country Heights area, opposed relocation of Fire Station 3 citing concerns regarding safety and extended response times to fire and medical ymergencies in their area. They advocated additional fire personnel and construction of a new fire station in the northeast area of the City but asserted that Station 3 was needed at its present location. Several residents expressed opposition to the proposed sales tax incre~s~ and urged Council to re-prioritize funding for public safety over other projects. 3/19/2002 I I I \,i/~' 61 Council Member McGeorge expressed co~c~rn regarding catastrophic wildfires and asked what types of reciprocal agreements t~e City has ~th other agencies in the area. Fire ChiefGunsauls stated that the west side of the City, in the'area of Station 3, as well-as Fire Stations 2, 4, and 6, are identified as wildfire hazard areas. He related that the City has excellent relationships with its neighboring communities for mutual aid response to all types of critical events as well as cooperative agreements with the California Department of Forestry, U.S. Park Service, and the U.S. Forest Service. He reiterated thatthe absence of Station 3 would delay response times by an additional two minutes, but by augmenting other stations, he believed that the response would be stronger and more beneficial because of the increase to three-person over two-person engines. Council Member McGeorge observed that some areas would be difficult to respond to no matter where fire stations were located because of terrain and road conditions. Fire Chief Gunsauls concurred, and added that the proposed western connection of Placer Street into the Country Heights Subdivision could possibly negate any delays in response arising from the loss of Station 3 and would enhance response times for Station 2 to some areas. Council Members reaffirmed support for Fire Chief Gunsaul's plan (Option B), but were interested in exploring methods of retaining Station 3 at its present location. They asked that revenues be monitored to accelerate construction of Station 8 and retain Station 3 at its present location. Council also supported formation of an exploratory committee, including citizens, to review community need and sentiment on a possible .25% sales tax increase to fund public s~fety, pointing out that it must be approved by a vote of the people. MOTION: Made by Council Member Stegall, seconded by Council Member Cibula, 1) approving integration ofthe recommended public safety enhancements into the next revision of the General Fund 1 0- Year Financial Plan as follows: $200,000 for fire safety equipment and $65,000 for addition of one new Fire Plans Examiner/Inspector position in Fiscal Year 2001-02; nine new firefighters and constructing Fire Station 8 in the northeast area of the City in Fiscal Year 2007-08; and five new police officers in Fiscal Years 2009-11. 2)Directing staff to prepare a budget resolution appropriating funds in the amount of $265,000 for said safety equipment and Fire Plans Examiner/Inspector position. -3) Directing staff to continue to evaluate revenues in an effort to escalate construction of a new Fire Station 8, and potentially retain Fire Station 3 at its present location and provide the City Council with periodic progress updates. 4) Establishing a committee to include Police and Fire management, labor, and the business community to explore a potential vote on a sales tax increase or other revenue enhancement. 5) Directing staff to work with State Senator Johannessen's office on development of a bill to authorize a possible local ballot measure regarding a sales tax increase, not before retirement of the electric utility surcharge, to fund additional public safety needs if approved by voters. - The Vote: AYES: . NOES: ABSTAIN: ABSENT: Council Members - Cibula, McGeorge, Stegall, and Kight Council Members - None Council Members - None Council Members - Pohlmeyer At the hour of 9:25 p.m. Mayor Kight declared the meeting in recess. At the hour of9:40 p.m. Mayor Kight reconvened the meeting. U.S. FLAG MEMORIAL (A-050-01O) Assistant City Manager Perry stated that the terrorist attack at the W orId Trade Center and Pentagon on September 11, 2001, created interest in establishing a visible memorial in Redding to demonstrate American patriotism and support for U.S. troops. Redding West Rotary and the Enterprise Lions Club have expressed a desire to create this memorial by constructing a 50 to 100 foot flagpole with night illumination. He said other service clubs are welcome to participate, and plans could include other flag poles for the State and/or City flag, with emphasis on the U.S. flag. Mr. Perry indicated that the California Department of Transportation (Caltrans) has offered a site on the east side of the Interstate 5 interchange with Highway 44 and Highway 299, with 3/19/2002 62 the proviso that the City obtain an encroachment permit. He outlined the memorial project responsibilities as follows: . " .' The City will provide application for an encroachment permit from Oiltrans, electrical energy for night illumination for the flag, and coordinate construction by licensed contractors. Caltrans will provide a memorial site and define minimum requirements, process the encroachmtmt permit, inspect work, and provide engineering dr~wings to extend electrical service to the site: ' " Service clubs Cind individual donations will provide materials, equipment, and fixtures to construct the memorial by licensed contractors, replacement oflights and flags as necessary, and the act~;il design and engineering of the memorial with Caltrans approval. ' , I . . Mr. Perry recommended that the City Council authorize application to the State for a U.S. Flag Memorial along Interstate 5 or another location of its choosing and upon approval of an encroachment permit, provide ele~tricity for night lighting, and construction coordination. In response to Council Member Stegall, Mr. Perry clarified that the flagpole would support a standard ma,terial-type U.S. flag, not a neon sign. The height has not been determined and will be left to the service clubs and permitting process. Council Member Cibula expressed concern that citizens of the community have not had sufficient opportunity to provide input into a memorial ofthis magnitude and asked that the matter be referred to the Community Services Advisory Commission for a recommendation. Council Member McGeorge expressed support for the project, however, voiced concern that the City and Caltrans not expend large amounts of staff time if a committee is going to . provide recommendations which may negate some of staff s work. Council Member Stegall suggested the !patter be referred to the service clubs to receive input from the community as to whether or not the m~morial is something the community wants. She emphasized tl1at the City has only been asked to participate which imposes no further obligations than those listed. I Victor Ogrey representing Enterprise Lions Club, assured the City Council that the community is and will firmly support the project. He stated that the impetus for the flag memorial came during City firefighters' "Fill the Bucket" drive to raise donations for firefighters in New York. He also pointed out that although he welcomed public input, time was of the essence because it was hoped the memorial would be complete by September 11, 2002. Council Member Cibula advised that although he supports the project, he will vote no because he believes the public should be afforded an opportunity for input. MOTION: Made by Co~cil Member McGeorge, seconded by Council Member Stegall, authorizing application to the California Department of Transportation (Caltrans) for an encroachment permit for a U.S. Flag Memorial along Interstate 5, with no commitment on the part of the City except to provide electrical energy for night lighting, the encroachment permit application, and construction coordination oflicensed contractors participating in the project. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - McGeorge, Stegall, and Kight Council Members - Cibula Council Members - None Council Members - Pohlmeyer I ALLOCA nON OF HOME FUND FOR HERlT AGE PLAZA APARTMENT COMPLEX REHABILIT AnON PROJECT (H-150-265) Deputy City Manager Starman recalled that the 180-unit Heritage Plaza Apartment Complex (Heritage Plaza) was developed in the late 60's as an affordable housing project with assistance from the Department of Housing and Urban Development (HUD). It is now in need of rehabilitation and is located in a "target area" identified by the City's Redevelopment Agency. 3/19/2002 63 I Mr. Starman related that Pacific American Properties, Inc. (a for-profit corporation) and Jon Berkley Management, Inc. (current manager of the complex) wish to jointly purchase and rehabilitate the apartment complex. The developers anticipate the project will cost approximately $6.4 million and intend to finance it via a combination of tax exempt bonds (approximately $4.4 million) and low-income housing tax credits (approximately $1.2 . million). Mr. Starman continued that the developers also propose to defer a portion of their developer fee, and are therefore, requesting a low-interest loan from the City in the amount of $663,000 ($573,000 for rehabilitation work and $90,000 for temporary relocation of displaced tenants) utilizing grant funds previously obtained through the California Department of Housing and Community Development's HOME Investment Partnerships Program (HOME). They have also requested that the City assist the California Statewide Communities Development Authority (CSCDA) to issue tax exempt bonds previously noted. Mr. Starman stated that the City is a member ofCSCDA, a joint powers agency that routinely issues tax exempt bonds for affordable housing projects. The City's participation would be to hold a public hearing and adopt a resolution authorizing issuance of the bonds and CSCDA will handle other details and issue the bonds and, therefore, the City will not guarantee the bonds or incur any obligation for repayment. I Mr. Starman summarized the benefits of participation in the project which are that Heritage Plaza will not continue to deteriorate, it is in one of the City's "target neighborhoods", the Redding Redevelopment Agency would be able to utilize one-half ofthe rehabilitated units to satisfy its production housing requirements as outlined in the California Health and Safety Code, the City would be able to utilize most of the rehabilitated units to satisfy its performance requirements relative to the HOME program, the developers would be required to maintain Heritage Plaza as an affordable housing complex for 55 years, and the proposed project is consistent with policies and goals outlined in the City's planning documents such as the General Plan's Housing Element and the Consolidated Plan. He pointed out that if Council did not approve the City's participation in the project, there was a possibility that the apartment complex could become market rate units, thereby displacing a large number of low- income families in addition to the loss of a significant amount of affordable units in the City. Mr. Starman recommended that the City Council conceptually agree to allocate up to $750,000 in HOME funds to partially finance the Heritage Plaza project, and assist CSCDA to issue tax exempt bonds for the project. In response to Council Member Stegall, Mr. Starman advised there would be some temporary displacement of tenants during renovation due to heating, ventilation, and air-conditioning systems undergoing repair/replacement. I MOTION: Made by Council Member Stegall, seconded by Council Member McGeorge, conceptually approving allocation of California Department of Housing and Community Development's HOME Investment Partnerships Program (HOME) funds in an amount not- to-exceed $750,000 to partially finance the rehabilitation of the Heritage Plaza I and II Apartment Complex by Pacific American Properties, Inc. and Jon Berkley Management, Inc.; and conceptually approving assisting California Statewide Communities Development Authority in issuance of tax exempt bonds to partially fund the proposed project. The Vote: A YES: Council Members - Cibula, McGeorge, Stegall, and Kight NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - Pohlmeyer SERVICE CONTRACTS - Coffman Associates (A-090-100) Support Services Director Kersten presented an overview of the Report to Council dated March 8, 2002, recalling that in October 2001, the City Council approved a Consulting and Professional Services Agreement with Coffman Associates for planning and consulting services at the Redding Municipal Airport and Benton Airpark. He pointed out that the Master Plan for the Redding Municipal Airport has not been updated since 1995 and contains information from 1993. The Authorization of Service Contracts authorize preparation of the Redding Municipal Airport Master Plan Update and Benton Airpark Master Plan to provide the comm1inity and public officials with proper guidance for future development of both airports. 3/19/2002. 64 Mr. Kersten reported that the cost of the Redding Municipal Airport Master Plan Update is approximately $150,000 and the Benton Airpark Master Plan is estimated to cost $50,000. He noted 90% of the funds for the Master Plans will be provided through existing Federal Aviation Admini~tration (FAA) grants and the remaining 10% from a State of California grant and the Airports Fund. Mr. Kersten recommended that the City Council ~pprove the Authorization of Services Contracts with Coffman Associates to prepare a Redding Municipal Airport Master Plan Update and Benton Airpark Master Plan, and authorize the Mayor to execute same. Council Member Stegall stressed that the Airport Master Plans include enough property to eliminate a land locked situation experienced by other cities. She requested that this issue be given serious consideration in preparing the update so the City will not be forced to re- purchase land for future expansion. I Airports Manager Dinger responded that the Land Use portion of the Plans will provide a very aggressive land acquisition program and will look closely at a 5-10 year short-term period, but provides a 20-year plan. He stated that a committee will be formed after initial consultant work has begun to determine the focus of the plan and invite public input. He invited Council to submit names, but advised the committee will also consist of individuals using the airports, tenants of both airports, and the business community. Russ Schildt, President of Redding Area Pilots Association, expressed support for the plan and applauded the concept of individual master plans because each airport has different needs. He urged that the boundaries of Benton Airpark be designated in the Benton Airpark Master Plan. MOTION: Made by Council Member Stegall, seconded by Council Member McGeorge, :lpproving two Authoriz(;ltion of Services Contracts with Coffman Associates for a Redding Municipal Airport Master Plan Update in the amount of $150,000 and Benton Airpark Master Plan in the amount of$50,000; and authorize the Mayor to execute same. The Vote: A YES: Council Members - Cibula, McGeorge, Stegall, and Kight NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - Pohlmeyer I PUBLIC COMMENT (A-050-060) Council Member Stegall announced that Redding resident Fran Jenkins was named "Woman of the Y ear" by Assemblyman Dick Dickerson's Office and honored by the State Legislature in Sacramento on March 18, 2002. ADJOURNMENT There being no further business, at the ho~ of 10:08 p.m., Mayor Kight declared the meeting adjourned. APPROVED MaY~ ~'L I ATTEST: Lf; ~~ City Clerk 3/19/2002