HomeMy WebLinkAboutMinutes - City Council - 2002-08-20
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CitY Council, Regular Meeting
Civic Center Council Chambers
777 Cypress Avenue,
Redding, California
August 20, 2002, 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Don Williams.
The Invocation was offered by Pastor O. Kris Widmer, Seventh Day Adventist Church.
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The meeting was called to order by Mayor Kight with the following Council Members
present: Cibula, McGeorge, Pohlmeyer, and Stegall.
Also present were City Manager Warren, Deputy City Manager Starman, Interim City
Attorney Tranberg, Development Services Director Hamilton, Electric Utility Director
Feider, Administrative Services Director Bachman, Support Services Director Kersten,
Economic Development Director Mitchell, Community Services Director Niemer, City Clerk
Strohmayer, Assistant City Clerk Sherman, and Executive Secretary Stribley.
RESOLUTION - Commending the Redding Roadrunners roller hockey team as the North
American Roller Hockey Champions
(A-050-060)
Mayor Kight read the resolution commending the Redding Roadrunners Roller Hockey Team
as the 2002 North American Roller Hockey Champions. He introduced team members Troy
Kockrow, Zach O'Brien, Lee Reno, John Duvoisin, Andrew Figueroa, Michael Spector,
Brian Cowell, Rusty Young, Andrew Grindstaff, Bobby Jones, Matt Van Hatta, Chris
Cessna, and Coach Phil Schweiger and thanked the team for providing a wonderful example
of Redding's youth to the entire nation.
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Coach Phil Schweiger thanked the City Council for this recognition of the Redding
Roadrunners and related how proud the team is to represent the City.
Team Captain Troy Kockrow presented Mayor Kight with a plaque of gratitude for
recognition and explained the team's appreciation for the support provided by the City and
its residents.
MOTION: Made by Council Member Cibula, seconded by Council Member Stegall,
adopting Resolution No. 2002-117 commending the Redding Roadrunners Roller Hockey
Team as the 2002 North American Roller Hockey Champions. The Vote:
AYES: Council Members - Cibula, McGeorge, Pohlmeyer, Stegall, and Kight
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2002-117 is on file in the Office of the City Clerk.
Approval of Minutes - Regular Meeting of July 16,2002, and Special Meetings of May 16,
2002, July 16, 2002, July 26, 2002, and August 9, 2002
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Approval of Payroll and Accounts Payable Registers
(A-050-100-500)
It is recommended that Accounts Payable Register No. 02, check numbers 302483 through
303084 inclusive, in the amount of$5,295,125.30, for the period of July 16,2002, through
July 30, 2002; Accounts Payable Register No. 03, check numbers 303085 through 303690
inclusive, in the amount of$5,651 ,332.06, for the period of August 1,2002, through August
15, 2002; Wire Transfers for the period of July 16, 2002, through August 16, 2002, in the
amount of $5,359,797.22; Payroll Register No.2, electronic deposit transaction numbers
111053 through 111715 and check numbers 490694 through 491 099 inclusive, in the amount
of $1,975,987.20, for the period of July 7, 2002, through July 20, 2002; and Payroll Register
No.3, electronic deposit transaction numbers 111728 through 112391 and check numbers
491143 through 491789 inclusive, in the amount of$2,370,541.49, for the period of July 21,
2002, through August 3,2002, be approved.
TOTAL: $20,652,783.27
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Treasurer's Report ~ June 2002
(A-050-100-600)
Total Treasurer's Accountability
$129,517,744.51
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities
$172,822,309.18
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 June 2002 be accepted.
Fire Hydrant Service Outside the City Limits; and
Establish Fire Hydrant Fee and Model Agreements
(F-210)
It is the recommendation of the Assistant City Manager that the City Council approve fire
hydrant service, as appropriate, outside the City limits; authorize staff to execute a Model
Agreement for fire hydrant service; direct staff to establish an associated fee; and obtain any
required approval from the Local Agency Formation Commission (LAFCo).
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HOME Loan - Pacific American Properties, Inc., Heritage Plaza Apartments
(H-150-265)
It is the recommendation of the Deputy City Manager that the City Council approve a loan
in the amount of$663,000 utilizing Home Investment Partnerships Program (HOME) funds
previously allocated to partially finance the acquisition and rehabilitation of the Heritage
Plaza Apartments; and authorize the City Manager to execute all necessary documents.
Council Member Cibula advised he will abstain from voting on this issue due to family
financial interests in the area.
The Vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Council Members - McGeorge, Pohlmeyer, Stegall, and Kight
Council Members - None
Council Members - None
Council Members - Cibula
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Sports Complex
(P-050-600-200)
It is the recommendation of the Assistant City Manager that the City Council accept the
Sports Complex update regarding design, bidding, permits, cost estimating, clearing, off-site
improvements, printing of plans and specifications, off-site sewer extension, and wetlands
mitigation.
Affordable Rental Housing - HOME Program
(G-100-075-200)
It is the recommendation of the Deputy City Manager that the City Council direct staff to
develop and issue a request for qualifications to identify an organization that is qualified to
develop a 15-20 unit housing project on City- and Redevelopment Agency-owned property
(4.8 acres) located on Linden Avenue through the Home Investment Partnerships Program
(HOME).
Agreement - Annette Seigel for turnaround at 5253 Debbie Lane
(S-070-100)
It is the recommendation of the Assistant City Manager that the City Council approve an
agreement with property owner Annette Siegel to replace the driveway at 5253 Debbie Lane
at a cost of$21 ,806 in exchange for a turnaround easement for City refuse and recycle trucks.
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Sewer Line Extension Agreement - Eric Johnston and Mark Irwin for the Sports Complex
(P-050-600-200 & W-020-575)
It is the recommendation of the Assistant City Manager that the City Council authorize staff
to negotiate an agreement with Eric Johnston and Mark Irwin to provide an extension of an
oversized sewer line to the Sports Complex via Innsbruck Lane with a City contribution in
the amount not-to-exceed $55,000.
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Resolution - Ratifying the Purchase Contract with American Electric Power as part of the
Enron Power Marketing, Inc. Settlement Agreement.
(E-120-150-600)
It is the recommendation of the Electric Utility Director that Resolution No. 2002-118 be
adopted, a resolution of the City Council of the City of Redding ratifying execution of the
Power Purchase Contract with American Electric Power as part of the Enron Power
Marketing, Inc. Settlement Agreement.
Award of Bid - Bid Schedule No. 3567, Furnishing Electric Line Clearance Services (Tree
Trimming)
(B-050-I00)
It is the recommendation of the Electric Utility Director that Bid Schedule No. 3567,
Furnishing Electric Line Clearance Services (Tree Trimming), be awarded to Utility Tree
Service, Inc. (UTS), in the amount of$367,650 for electric line clearance services for Fiscal
Year 2002-03 to meet state regulations and standards.
Water Agreement - Bella Vista Water District, McConnell Foundation, and the Turtle Bay
Exploration Park
(P-050-460-700 & W -030)
It is the recommendation of the Community Services Director that the City Council approve
an agreement with Bella Vista Water District, the McConnell Foundation, and Turtle Bay
Exploration Park to provide non-potable water for irrigation at the Arboretum, potable
drinking water for trail users at the east end of the Sacramento River Trail, and potable water
for employees at the Bella Vista Water District pumping plant; and authorize the Mayor to
execute the agreement. The cost to the City is approximately $8,600 provided through
Proposition 12 funds.
Resolution - Establishing the Appropriation Limit for Fiscal Year ending 2003
(A-050-135)
It is the recommendation of the Administrative Services Director that Resolution No. 2002-
119 be adopted, a resolution of the City Council of the City of Redding establishing the City
of Redding appropriation limit of $125,93 3,773 for fiscal year 2002 -03, as required by state
law.
Resolution - Amending the Executive Management Pay-for-Performance Salary Plan
(P-100-320 & A-050-300)
It is the recommendation of the Administrative Services Director that Resolution No. 2002-
120 be adopted, a resolution of the City Council of the City of Redding amending the
Executive Management Pay-For-Performance Salary Plan deleting the classification of
Director of Public Works and adding the classification of Director of Municipal Utilities at
the same salary range $5,897 to $9,303 effective August 18,2002.
Notice of Completion - Bid Schedule No. 3558, Dana Drive 2002 Overlay Project
(B-050-020 & S-070-200)
It is the recommendation ofthe Development Services Director that Bid Schedule No. 3558
(Job No. 2188), Dana Drive 2002 Overlay Project, awarded to J. F. Shea Company, Inc., be
accepted as satisfactorily completed and the City Clerk be authorized to file a Notice of
Completion. The final contract amount is $432,977.29.
Notice of Completion - Bid Schedule No. 3550, Hill 900 Water Main
(B-050-020 & W-030-725)
It is the recommendation of the Development Services Director that Bid Schedule No. 3550
(Job No. 2184), Hill 900 Water Main, awarded to Forman Construction, be accepted as
satisfactorily completed and the City Clerk be authorized to file a Notice of Completion. The
final contract amount is $109,898.95.
Final Map and Subdivision Agreement - Land Park Unit 2 (formerly River Knolls),(S-8-95)
(S-1 0 1-006)
It is the recommendation ofthe Development Services Director that the City Council approve
the Final Map for the Land Park Subdivision, Unit 2 (S-8-93) (formerly River Knolls),
developed by Mountain Properties (Jaxon and Kate Baker), located on the west side of
Buenaventura Boulevard south of Keswick Dam Road. It is further recommended that the
Mayor be authorized to sign the subdivision agreement and the City Clerk be instructed to
file the map with the Shasta County Recorder.
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Resolution - Summarily vacating a public service easement at 960 Cypress Avenue
(A-O 1 0-040)
It is the recommendation of the Development Services Director that Resolution No. 2002-
121 be adopted, a resolution of the City Council of the City of Redding summarily vacating
the public service easement at 960 Cypress A venue granted to the City and recorded as
Document No. 35521 in the Office of the Shasta County Recorder on August 16, 1990, Book
2631, Page 255 (A-2-02). Requested by property owner Safeway Incorporated because the
easement has not been used for the purpose for which it was dedicated.
Resolution - Approving Freeway Maintenance Agreement with CalTrans
(S-050-100) I
It is the recommendation of the Assistant City Manager that Resolution No. 2002-122 be
adopted, a resolution of the City Council of the City of Redding approving the Maintenance
Agreement between the City and the State of California Department of Transportation
(CalTrans) to correct the Maintenance Agreement of January 25, 1993, which referred to the
Hawley Road/Chum Creek Road Undercrossing as an Overcrossing; and authorize the Mayor
to execute necessary documents.
Award of Bid - Bid Schedule No. 3575, purchase of three (3) trucks, and;
Surplus Property - Sale of two trucks
(B-050-l 00/S-020-1 00/S-020-550)
It is the recommendation of the Assistant City Manager that Bid Schedule No. 3575,
purchase of three 25,995-pound GVW Cab and Chassis Refuse Trucks to include two 12-
yard bodies and one 14-yard body with optional mirrors be awarded to Western Truck Parts
of Redding in the amount of $333,463.37; and authorize the Mayor to sign necessary
purchase documents.
It is further recommended that the City Council designate the following equipment as
surplus:
Fleet Number - 00487
FleetNumber- 00491
Division 551 1989 FD Hino/Heil-Chassis and 6-yard packer
Division 5511989 FD-17 Hino/Heil-Chassis and 6-yard packer
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and authorize staff to sell said equipment and the revenues deposited in the Solid Waste
Utility Rolling Stock Fund.
Award of Bid - Bid Schedule No. 3587, rock and mineral products for fiscal year 2002-03
(B-050-I00)
It is the recommendation of the Assistant City Manager that Bid Schedule No. 3587, Rock
and Mineral Products for Fiscal Year 2002-03, be awarded to following suppliers who
submitted low bids, and allow utilization of tie bidders by convenience of job site locations
and product availability. This will allow the purchase of rock, asphalt, and mineral products
at the best possible prices during the fiscal year:
Company
J.F. Shea
Mt. Gate Quarry
Northstate Asphalt
Westside Aggregate
Crystal Creek Aggregate
Tie Bids
Bid Item Numbers
1,3,13,15-24,26,29,42
10,33
1-9, 31, 32, 34-43
25,27-30
10-12, 14
1, 10,29,42
The annual expenditure is estimated in the amount of $200,000.
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Resolution - Adopting City Council Policy No. 1503, entitled "Capital Projects-Estimating
Process"
(A-050-060-555)
It is the recommendation of the Interim City Attorney that Resolution No. 2002-123 be
adopted, a resolution of the City Council of the City of Redding adopting Council Policy No.
1503 "Capital Projects' Cost-Estimating Process" providing procedures for unique and
complex capital projects.
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MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer,
that all the foregoing items on the Consent Calendar be approved and adopted as
recommended, with the exception of the item approved by separate vote as indicated above.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Cibula, McGeorge, Pohlmeyer, Stegall, and Kight
Council Members - None
Council Members - None
Council Members - None
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Resolution Nos. 2002-118, 2002-119, 2002-120, 2002-121, 2002-122, and 2002-123 are on
file in the Office of the City Clerk.
APPOINTMENTS -League of California Cities Annual Conference Voting Delegates
(L-040-150)
Mayor Kight explained that Council Members Cibula and Stegall who serve as City Council
liaisons to the League of California Cities are unavailable to attend the 2002 League of
California Cities Annual Conference in Long Beach, California to be held October 2, 2002,
through October 5, 2002. He therefore, recommended the appointment of Administrative
Services Director Bachman as Voting Delegate to represent the City at the business meeting
and Assistant City Manager Perry as Alternate Voting Delegate.
MOTION: Made by Council Member Cibula, seconded by Council Member Stegall,
appointing Administrative Services Director Bachman as Voting Delegate and Assistant City
Manager Perry as Alternate Voting Delegate to the 2002 League of California Cities Annual
Conference in Long Beach, California, to be held October 2,2002, through October 5,2002.
The Vote: Unanimous Ayes
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ORAL UPDATE ON MAJOR PROJECTS - Zucker Report Implementation Committee
(A-050-080 & A-050-122)
Deputy City Manager Starman, Ombudsman for the Zucker Report Implementation
Committee (Committee), provided a progress report stating that upon review of 13
development issues identified in the Report to City Council dated August 14,2002, he found
few represented City errors and in most instances, staff put forth extra effort to resolve
problems and complaints. He introduced Frank Strazzarino, President of the Greater
Redding Chamber of Commerce and Committee member, who provided additional
information.
Mr. Strazzarino reported that the Committee met three times to define goals and
responsibilities, and to streamline the review and implementation process to a single-page
concept to address each of the 48 recommendations contained in the original Zucker Report.
He advised there will be two additional progress reports provided to City Council in October
and December.
No action was required on this informational item.
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CALIFORNIA DEPARTMENT OF FISH & GAME - Partnership re property south of the
Sports Complex
(C-070-0 1 O/P-050-600-200/S-060-150-165)
City Manager Warren provided an overview of the Report to City Council dated August 12,
2002, stating that pursuant to agreements with state and federal agencies requiring lands for
wetlands mitigation for the Sports Complex and Clover Creek Preserve projects, the City has
set aside 24 acres south of the Sports Complex and is negotiating the purchase of an
additional 30 acres with Pacific Gas & Electric (PG&E) in the same area. The City will own
the 54 acres on both sides of Highway 44 in fee title (ownership of the property with
conservation easements held by the Department ofFish and Game) and maintain the property
as wetlands. He noted that the Department ofFish and Game (DFG) is attempting to acquire
approximately 75 additional acres in the same vicinity and, if successful, will provide the
City with fee title ownership for a total of approximately 125 acres. The proposed goal of
the DFG is to return the entire 125 acres to its original eco-system and provide a large area
for passive recreation.
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Mr. Warren explained that the DFG has suggested that the City enter into a partnership
agreement that will combine maintenance and restoration efforts of both agencies. He
pointed out that the DFG has approximately $250,000 in endowments for the acreage and
interest accrued could be used to offset maintenance costs of the properties. He added that
fencing and drainage for the property are a proposed condition of the partnership.
City Manager Warren emphasized the efficiency of a partnership for maintenance of such a
large area and, on that basis, recommended that staffbe directed to proceed with negotiations
for an agreement with the DFG to provide the City with fee title for 125 acres of property
south of the Sports Complex, endowment funds for maintenance, and shared maintenance
and capital improvement responsibilities.
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Jim Nelson, Habitat Conservation Specialist for the Department ofFish and Game, provided
a Powerpoint presentation depicting the area in question. He recalled that at one time this
area was the largest wetlands within the City of Redding, however, through construction and
degradation, only 1/3 of the original wetlands remain. Mr. Nelson explained that it is the
belief of the DFG that this wetlands can become a functioning eco-system again with minor
restoration efforts. He related that it is far more efficient to consolidate the property into a
single entity, with a single plan, and pool resources than attempt to restore parcels in a
"piece-meal" fashion.
MOTION: Made by Council Member McGeorge, seconded by Council Member Stegall,
accepting the report and directing staffto pursue a partnership agreement with the California
Department ofFish and Game (DFG) to provide the City with fee title to approximately 125
acres of property south of the Sports Complex on either side of Highway 44, DFG to provide
endowment funds for maintenance, and shared maintenance and capital improvement
responsibilities. The Vote: Unanimous Ayes
REQUEST FROM BENTON HANGAR ASSOCIATION - Waiver of performance bond
requirements
(C-070-100 & A-090-020)
City Manager Warren provided an overview of the Report to City Council dated August 12,
2002, recalling that negotiations with the Benton Hangar Association (Association) began
in October of2000, for a ground lease at the Benton Airpark to construct an aircraft storage
hangar and taxi lane, and was approved by the City Council on September 4, 2001. As part
of the lease agreement, surety in the amount of$10,000 was required from the Association
to assure that provisions of the agreement are met over the 30-year term of the lease. He
related that the requirement of surety (performance bond) is standard practice throughout the
City to ensure a proper level of protection against loss or non-performance. Mr. Warren
stated that a recent survey revealed that most types of surety cost 1% to 3% of the total
amount of the bond per year and that a certificate of deposit or letter of credit pays interest
to the lessee.
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Mr. Warren noted that review ofleases and surety requirements five years into the lease is
standard practice, and providing all accounts are in good standing, it is possible that the
amount of surety can be reduced. He noted that staff has agreed to review the Association's
lease and surety requirements in five years.
Mr. Warren recommended that the City Council deny the request by Benton Hangar
Association to waive the Performance Bond requirement of the Master Ground Lease for an
aircraft storage hangar located at Benton Airpark.
Mr. George Loegering, Secretary for the Benton Hangar Association, requested that the City
Council waive the Performance Bond requirement in the Master Lease. He explained that
the Benton Hangar Association (Association) is comprised of 11 individuals who have just
completed construction of a $320,000 hangar and a $10,000 bathroom. He recalled that the
$10,000 Performance Bond issue was contentious during negotiations for the Master Lease,
however, the Association determined it would revisit the issue at a later date in order to move
forward finalizing the lease agreement to begin construction of the facility.
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Mr. Loegering purported a disparity in bond amount requirements for other users at the
Airpark, such as Hillside Aviation, which is only required to provide a $5,000 bond without
substantial collateral. He explained that while some bonds might cost as much as $1,000 per
year, it is a nuisance to maintain a bond for 30 to 35 years; therefore, it is the position ofthe
Association that the $320,000 building should satisfy the surety requirement.
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Mayor Kight observed that the 11 participating Association members signed the contract
only a year ago knowing full well the conditions ofthe contract at that time. He believed it
inappropriate to renegotiate requirements of a 30-year lease a year after approval.
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Council Member Cibula stated that he is in favor of staff s recommendation because he does
not support renegotiating leases on a "buyer's remorse" type issue, because it sets a
dangerous precedent, but questioned whether some type of flexible arrangement, less
expensive to the Association, can be found that will satisfy the requirement of security.
Acting City Attorney Tranberg responded that the Master Lease with the Association
currently provides three alternative methods of posting security, a letter of credit, a bond, or
a certificate of deposit (CD). He explained that the requirement of surety is in accordance
with Council policy, but the City Council could amend or withdraw the policy if it so
chooses. .
City Manager Warren concurred that the three alternatives provided in the Lease are
reasonable and restated that the current posted certificate of deposit earns interest which goes
to the Association. He emphasized that the City has committed to revisit the bond issue in
five years at which time a compromise may be reached. However, he cautioned that ifthe
City Council decides to reduce or eliminate the surety requirement of the Lease, there will
be others who will want to renegotiate agreements.
Council Member Pohlmeyer expressed opposition that any further staff time be spent on the
issue, particularly in light of the fact that it will be revisited in five years.
Council Member McGeorge saw merit to Mr. Loegering's assertion that a $320,000 building
may serve as guarantee for the Lease. He requested that staff research creative methods of
providing surety and also asked for a report on the disparity of securities as alleged by Mr.
Loegering for other leaseholders at the Airpark.
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Council Member Cibula explained that because the security issue is set forth in the contract,
he supports denial of the waiver, but requested that staff continue to search for some
flexibility if the Association submits a reasonable proposal.
Mayor Kight clarified that staff also recommended revisiting the security issue in five years.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
denying the request by the Benton Hangar Association to waive the Performance Bond
requirement of the Master Ground Lease for an aircraft storage hangar on property located
at Benton Airpark and approving staffs recommendation to revisit the security issue in five
years. The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Cibula, Pohlmeyer, Stegall, and Kight
Council Members - McGeorge
Council Members - None
Council Members - None
City Manager Warren requested clarification regarding Council Members McGeorge and
Cibula request for reports. Mayor Kight advised that the issue would not be brought back
to the City Council, but would be revisited in five years by staff.
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Council Member Cibula asked for clarification of the motion, specifically the
recommendation of staff as set forth in the Report to Council which did not include
revisitation in five years. He advised his vote was predicated on a continued search for more
flexibility in the amount of surety.
Council Member Cibula asked for reconsideration of his vote.
MOTION: Made by Council Member Cibula, seconded by Council Member Stegall, to
approve reconsideration of the previous vote. The Vote:
A YES: Council Members - Cibula, McGeorge, and Stegall
NOES: Council Members - Pohlmeyer and Kight
ABSTAIN: Council Members - None
ABSENT: Council Members - None
In response to concerns and questions raised by Council earlier, Acting City Attorney
Tranberg stated that over time, insurance and bonding requirements have substantially
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increased which may explain why older leases contain less surety than recently-negotiated
leases. Additionally, he pointed out that while the building is a valuable asset, the purpose
of security is to protect the City in the event a tenant fails to pay rent, utilities, or repairs on
a building. The recourse to seize the building would not assist in payment of outstanding
debts and may expose the City to lengthy litigation for a relatively simple issue such as a
monthly utility bill.
Support Services Director Kersten explained that the Association is not a legal entity, but 11
individuals which would present a difficult litigation process should the City be forced to
acquire the building for non-payment of rent or utilities. He pointed out that past
requirements for general liability insurance have increased over the years from $250,000 to I
$2 million. Mr. Kersten warned that approval of the request for the waiver could set a
dangerous precedent.
Council Member Pohlmeyer suggested that the reports requested by Council Members
McGeorge and Cibula would be more appropriately addressed during preparation of the
Airport Master Plan for Benton Airpark. Mr. Kersten explained that that type of issue is not
generally part of a master plan for an airport. Council Member Pohlmeyer requested that it
be added.
MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer,
denying the request by the Benton Hangar Association to waive the Performance Bond
requirement of the Master Ground Lease for an aircraft storage hangar on property located
at Benton Airpark, and directing staff to revisit the issue in five years. The Vote:
A YES: Council Members - Pohlmeyer, Stegall, and Kight
NOES: Council Members - Cibula and McGeorge
ABSTAIN: Council Members - None
ABSENT: Council Members - None
MONTHL Y FINANCIAL REPORT - Electric Utility
(B-130-070)
Electric Utility Director Feider provided an overview of the Report to Council, dated August
9,2002, advising that retail revenue is 4.3%, or $3,208,772 below projection, primarily due
to weather conditions and ongoing energy efficiency and conservation. He pointed out that
wholesale revenue is $11,526,743 or 25.8% below projection, due to the ongoing weakness
in wholesale spot-market conditions. Operating revenue after energy costs is
$34,571,376.00, but that figure is $8,221,015 or 19.2% below projections. The total cost of
electricity through June is $5,805,333 or 7.5% below year-to-date projections. The Utility's
earnings before interest, depreciation, and amortization is $18,509,178.00, but below the
projected $23,854,308.
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Mr. Feider reported that at the federal level there is ongoing standard market design
regarding the direction of the country for the electric industry. He recommended approval
of the Electric Utility's Financial Report for June 2002.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
accepting the Electric Utility's Monthly Financial Report for June 2002.
The Vote: Unanimous Ayes
AWARD OF BID - Bid Schedule No. 3566, One (1) Type II Pumper Engine Fire Truck; and
RESOLUTION - Approving lease/purchase agreement with Suntrust Leasing Corporation
(B-050-100 & P-150-070)
Fire Chief Gunsauls stated that in order to combat fires in the Wildland-Urban Interface
areas, a smaller more maneuverable fire engine, Type II, was designed. As part of planned
equipment purchases the Type II engine purchased in 1983 has been sold and it is proposed
to purchase one Type II Fire Engine from Pierce Fire Apparatus, Inc., of Appleton,
Wisconsin, in the amount not-to-exceed $235,193.31. Funding will be through a 5-year
Master Lease Agreement with SunTrust Leasing Corporation.
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Fire ChiefGunsauls recommended awarding Bid Schedule No. 3566, Engine Fire Truck, to
Golden State Fire Apparatus (representing Pierce Fire Apparatus) in the amount of
$235,193.31. He further recommended adoption of a resolution authorizing the execution
and delivery of a Five- Year Master Lease Agreement No. 1442, Equipment Schedule No. 01,
an Escrow Agreement and related instruments with SunTrust Leasing Corporation.
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MOTION: Made by Council Member Cibula, seconded by Council Member McGeorge,
awarding Bid Schedule No. 3566, One Type II Pumper Engine Fire Truck to Golden State
Fire Apparatus in the amount not-to-exceed $235,193.31; and adopting Resolution No. 2002-
124, a resolution of the City Council of the City of Redding authorizing the execution and
delivery of Five-Year Master Lease No. 1442, Equipment Schedule No. 01, an Escrow
Agreement, and related instruments with SunTrust Leasing Corporation in the principal
amount not-to-exceed $235,193.31 for the purchase of one Type II Fire Engine from Pierce
Fire Apparatus, Inc. The Vote:
Ayes: Council Members: Cibula, McGeorge, Pohlmeyer, Stegall, and Kight
Noes: Council Members: None
Abstain: Council Members: None
Absent: Council Members: None
Resolution No. 2002-124 is on file in the Office of the City Clerk.
MONTHL Y FINANCIAL REPORT - General Fund; and
RESOLUTION - Amending the 2001-02 budget increasing Police and Fire appropriations
(B-130-070)
Administrative Services Director Bachman presented the General Fund report for June 2002
stating that revenues are approximately $1.3 million less than anticipated because $2.4
million to be borrowed for the Aquatic Center (Redding Plunge) project is not yet available.
If that amount is subtracted, the actual total would be $1 million more than anticipated. He
reported that total revenue to date is $48.8 million or $1,352,989 (2.7%) below staffs cash
flow projection. Expenditures to date, excluding encumbrances, total $49,045,279 or
$7,627,280 (13.5%) below staffs original cash flow projection. Encumbrances total
$3,555,977. He advised that expenditures are as anticipated, except $100,000 in overtime
for the Police Department and $72,000 in the Fire Department due to Compensatory Time.
Off(CTO) issues requiring additional overtime and necessitating additional appropriations.
He stated that the General Fund will be $1 million ahead of expectations provided the State
does not make reductions during its budget process.
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Mr. Bachman recommended acceptance of General Fund's Monthly Financial Report for
June 2002. He further recommended adoption of a resolution appropriating an additional
$103,000 for Police and $72,000 for Fire.
MOTION: Made by Council Member McGeorge, seconded by Council Member
Pohlmeyer, accepting the General Fund Monthly Financial Report for June 2002; and
adopting Resolution No. 2002-125, a resolution of the City Council ofthe City of Redding
approving and adopting the 58th Amendment to City Budget Resolution No. 2001-104
appropriating an additional $103,000 for the Police Department and $72,000 for the Fire
Department due to overtime expenditures for fiscal year 2001-02. The Vote:
A YES: Council Members - Cibula, McGeorge, Pohlmeyer, Stegall, and Kight
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2002-125 is on file in the Office ofthe City Clerk.
I
AWARD OF BID - Bid Schedule No. 3581, traffic signal at South Bonnyview Road and
Indianwood Drive; and
RESOLUTION - Appropriating funds from the construction capital tax account
(B-050-020 & B-130-070)
City Engineer Goodwin explained that the award of traffic signal installation at South
Bonnyview Road and Indianwood Drive includes an additive alternate in the amount of
$21,118 to enhance the signal by providing powder-coated colored poles, decorative lighting
and bases. He explained that this is a key intersection due to its proximity to the river, and
the fact that the new Hilton Hotel and Blue Shield complex will be constructed at this
location.
City Engineer Goodwin recommended awarding Bid Schedule No. 3581, traffic signal at
South Bonnyview Road and Indianwood Drive with additive alternate to H and H Electric
in the amount of $176,395, approving $18,000 for engineering and inspection fees, and
$26,000 for construction contingencies for a total of $220,395. He also recommended
adoption of a resolution appropriating $30,500 for installation of the traffic signal at South
Bonnyview Road and Indianwood Drive. .
8/20/2002
188
City Manager Warren interjected that these enhancements will not be included for most
traffic signal installations, but this particular intersection is very visible and the upgrades will
add to the appearance of the area.
Carl Arness, Redding resident, expressed opposition to spending additional monies for
beautifying intersections when other needs, such as pothole repair and street maintenance are
needed. He opined that people do not look at traffic signals, but at the lights and other
traffic.
Council Member Stegall supported upgrades at traffic signals opining that it raises esteem
and pride in the City.
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MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
awarding Bid Schedule No. 3581, traffic signal at South Bonnyview Road and Indianwood
Drive to Hand H Electric in the amount of $176,395 including Additive Alternate
incorporating colored poles, decorative lighting and bases; approved $18,000 for engineering
and inspection fees and $26,000 construction contingency fund for a total amount of
$220,395; and adopting Resolution No. 2002-126, a resolution of the City Council of the
City of Redding approving and adopting the 57th Amendment to City Budget Resolution No.
2001-104 appropriating $30,500 for the installation of the traffic signal at South Bonnyview
Road and Indianwood Drive for fiscal year 2002-03. The Vote:
AYES: Council Members - Cibula, McGeorge, Pohlmeyer, Stegall, and Kight
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2002-126 is on file in the Office of the City Clerk.
PUBLIC COMMENT
(A-050-060)
Victor Ogrey representing Enterprise Lions Club, invited the City Council, staff, and the
audience to attend the "Raise the Flag" fund raiser on Friday, August 23,2002 from dawn
to dusk. He stated the site chosen for the flag is on North Bechelli Lane at the Church ofthe
Nazarene and the City's Permitting Division has approved permits for the project. He noted
the flag not only honors the memory of the events of September 11, 2001, but also honors
all veterans.
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Fluoride
(W-030)
Roberta Withrow and Esther Hall expressed opposition to fluoridation of City water citing
expense and health hazards. They requested that the City provide an open forum meeting for
citizens to learn about fluoridation.
ADJOURNMENT
There being no further business, at the hour of 8 :26 p.m., Mayor Kight declared the meeting
adjourned.
APPROVED
Ma9 frL
I
ATTEST:
L~
. / vJ
CIty Clerk
8/20/2002