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HomeMy WebLinkAboutMinutes - City Council - 2002-10-15 219 City Council, Regular Meeting Civic Center Council Chambers 777 Cypress A venue, Redding, California October 15,2002, 7:00 p.m. The Pledge of Allegiance to the Flag was led by City Clerk Strohmayer. I The Invocation was offered by Pastor Mac Harris, All.Nations Church of Christ. The meeting was called to order by Mayor Kight with the following Council Members present: Cibula, McGeorge, and Pohlmeyer. Council Member Stegall was absent. Also present were City Manager Warren, Assistant City Manager Perry, Deputy City Manager Starman, City Attorney Fuller, Development Services Director Hamilton, Police Lieutenant Moty, Planning Manger Keaney, City Clerk Strohmayer, Assistant City Clerk Sherman, and Executive Secretary Stribley. Approval of Minutes - Regular and Special Meetings of October 1, 2002 I Approval of Payroll and Accounts Payable Registers (A-050-100-500) It is recommended that Accounts Payable Register No.7, check numbers 800011 through 800416 inclusive, in the amount of$3,320,269.38, for the period of October 1,2002, through October 10,2002; Wire Transfers for the period of October 1,2002, through October 11, 2002, and September 27,2002, in the amount of$2,799,316.1 0; and Payroll Register No.7, electronic deposit transaction numbers 114430 through 115095 and check numbers 492889 through 492898, and check numbers 500011 through 500255 inclusive, in the amount of $1,808,499.24, for the period of September 15, 2002, through September 28, 2002, be approved. TOTAL: $7,928,084.72 I Ordinance - Amending Redding Municipal Code Section 10.06.020 (Rezoning Application -RZ-2-01) (L-01O-230) It is the recommendation of the Development Services Director that Ordinance No. 2302 be adopted, an ordinance of the City Council of the City of Redding amending Section 10.06.020 of the Redding Municipal Code relating to the rezoning of certain real property located at 4700 Bechelli Lane (RZ-I-02) from "u" Unclassified District to "CO" Office District and "OS" Open Space District, requested by Williams and Paddon Inc. Amended Agreements - SHN Consulting Engineers and Purkiss Rose.rsi for the Sports Complex (P-050-600- 200) It is the recommendation of the Assistant City Manager that the City Council approve amendments to the agreement with SHN Consulting Engineers & Geologists, Inc. (SHN) to provide vernal pool analysis related to the U.S. Army Corps of Engineers 404 Permit (wetlands encroachment) in the amount of$I,221. It is further recommended that the City Council approve the amendment to the agreement with Purkiss Rose.rsi to provide staking for additional survey points and calculating curves in the amount of $5,600. Reimbursement Agreement - Johnston and Franklin, Inc. and Mark and Bobbie Irwin (A-070-300 & W-020-575) It is the recommendation of the Assistant City Manager that the City Council authorize the Mayor to sign a Reimbursement Agreement with property owners Johnston and Franklin Incorporated and Mark and Bobbie Irwin for construction to oversize and extend a sewer line on Innsbruck Lane. Upon completion of the sewer line, the City will reimburse property owners in the amount of$55,000. 10/1512002 220 Grant Applications - U.S. Soccer Foundation (G-I00/P-050-600-200/P-050-690) It is the recommendation of the Assistant City Manager that the. City Council authorize submittal of two grant applications to the U.S. Soccer Foundation for soccer field development at the Sports Complex Project. These grants are available under a competitive program and "Partners Program." Amended Agreement - Dyett & Bhatia for the Comprehensive Zoning Ordinance Update (L-01O-500) It is the recommendation of the Development Services Director that the City Council amend the agreement with Dyett & Bhatia for the Comprehensive Zoning Ordinance Update to provide preparation of "Design Criteria" and additional trips to Redding in an amount not- I to-exceed $2,150. Grant Agreement - Shasta County Air Quality Management District (G-100 & E-020-010) It is the recommendation of the Development Services Director that the City Council approve the Air Quality Grant Funding Agreement with Shasta County Air Quality Management District in the amount of$30,000 for Fiscal Year 2002-03. The funds will be used to further General Plan trail policies and track air quality impacts. Tentative Subdivision Map - Vista Ridge Estates Subdivision, Unit 2, by OPUS Development (S-1 00- 778) It is the recommendation of the Development Services Director that the City Council accept the report on the action of the Planning Commission to approve the tentative subdivision map for Vista Ridge Estates Subdivision, Unit 2, (S-2-02), located west of Mont crest Drive, north of Buckthorn Drive, and adjacent to the Tanglewood Planned Development, by OPUS Development which will require off-site acquisition of a public right-of-way easement over the existing private street Buckhorn Drive and could necessitate use of eminent domain in the future. Council Member Cibula advised that he will abstain from the vote. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - McGeorge, Pohlmeyer, and Kight Council Members - None Council Members - Cibula Council Members - Stegall I Award of Bid- Request for Proposal No. 3589, catering and concession services at the Redding Convention Center (B-050-100 & C-050-050) It is the recommendation of the Community Services Director that the City Council award Request for Proposal No. 3589, catering and concession services at the Redding Convention Center to Paulson's Catering effective October 16,2002 through September 15,2005, with two one-year renewal options. Resolution - Appropriating State Proposition 12 funds for trail project management support servIces (B-130-070 & P-050-460) It is the recommendation ofthe Community Services Director that Resolution No. 2002-147 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 64th Amendment to City Budget Resolution No. 2001-104 appropriating $10,680 from allocated State Proposition 12 funds in fiscal year 2001-02 and $9,320 in fiscal year 2002-03 for trail project management support services. California Law Enforcement Equipment Program (CLEEP) - Spending recommendation; and Resolution - Appropriating grant funds (G-I00-170/B-130-070/P-150-150) It is the recommendation of the Chief of Police that the City Council approve the plan for purchase oflaw enforcement equipment inclusive of new technologies utilizing grant funds from the California Law Enforcement Equipment Program (CLEEP) in the amount of $29,014. I It is further recommended that Resolution No. 2002-148 be adopted, a resolution of the City Council ofthe City of Redding approving and adopting the 66th amendment to City Budget Resolution No. 2001-104, accepting and appropriating $29,020 from the CLEEP grant for technology for fiscal year 2002-03. 10/15/2002 221 Police Services Agreement - City of Chico (P-150-150) It is the recommendation of the Chief of Police that the City Council authorize the Mayor to execute an agreement with the City of Chico to provide two Redding Police Officers and driving under the influence (DUI) equipment in the City of Chico on October 31, 2002, Halloween night, to operate a DUI checkpoint. I Resolution - Adopting Vantage Care Retirement Health Savings (RRS) Plan (P-I00-030) It is the recommendation of the Administrative Services Director that Resolution No. 2002- 149 be adopted, a resolution of the City Council of the City of Redding adopting the Vantage Care Retirement Health Savings (RRS) Plan to provide an employee-paid program for saving funds to pay for post-retirement medical costs for the Redding Police Managers Association, the Redding Peace Officers Association, and the International Brotherhood of Electrical Workers - Electrical and Maintenance. Acceptance of Final Map and Improvements - Tierra Bendito Subdivision; and Resolution - Accepting streets (S-101-039 & S-070-230) It is the recommendation of the Development Services Director that the Final Map for Tierra Bendito Subdivision (S-7 -01) located south of Old Alturas Road and west of Oak Mesa Drive by Couglin Development Corporation be approved, that the improvements in Tierra Bendito Subdivision be accepted as satisfactorily completed, and the City Clerk be instructed to file the Map with the Shasta County Recorder. It is further recommended that Resolution No. 2002-150 be adopted a resolution of the City Council of the City of Redding accepting for maintenance and operation O'Shea Way and Katrina Way in Tierra Bendito Subdivision. I Final Map and Subdivision Agreement - Tierra Oaks Subdivision Unit 4 (L-OI0-210-789) It is the recommendation of the Development Services Director that the Final Map for Tierra Oaks Subdivision Unit 4 (PD-I-94), located west ofTierra Oaks Subdivision at the north end of Oasis Road, by North Valley Properties, LLC, be approved, the Mayor be authorized to sign the Subdivision Agreement, and the City Clerk be instructed to file the Map with the Shasta County Recorder. Resolution - Accepting streets and trail and improvements (L-O 1 0-21 0-704/S-1 00-705-900/S-070-230) It is the recommendation of the Development Services Director that Resolution No. 2002- 151 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation Buenaventura Boulevard from Keswick Dam Road to Sutro Mine Road, Sutro Mine Road from Buenaventura Boulevard to Santa Cruz Drive, and the trail from Sutro Mine Road to the Sacramento River Trail for Stanford Hills Subdivision (S-3- 00/PD-2-99), located south of Keswick Dam Road and east of Buenaventura Boulevard, by Creative Living. It is further recommended that the improvements in Stanford Hills Subdivision (S-3-00/PD- 2-99), be accepted as satisfactorily completed and the City Clerk be instructed to return securities to the developer. I Award of Bid - Bid Schedule No. 3542, transportation concept report and preliminary engineering and cost analysis for downtown railroad grade separation and switching operation relocation; and Agreement - DMJM+Harris (B-050-100 & T-100-300) It is the recommendation of the Development Services Director that Bid Schedule No. 3542, Transportation Concept Report and Preliminary Engineering and Cost Analysis for Downtown Railroad Grade Separation and Switching Operation Relocation, be awarded to DMJM+Harris (DMJM) in the amount of $149,990.45 to provide professional traffic, economic, and engineering services. It is further recommended that the City Council authorize the Mayor to execute the Consulting and Professional Services Agreement with DMJM for said services. 10/15/2002 222 Award of Bid - Bid Schedule No. 3601, Highland Avenue Storm Drain Improvements (B-050-020 & S-060-150) It is the recommendation of the Development Services Director that Bid Schedule No. 3601 (J ob No. 9014-68), Highland Avenue Storm Drain Improvements, be awarded to Solid Rock Construction in the amount of$I13,396, with an additional $12,000 for administration and inspection fees, and a $60,000 construction contingency fund for a total cost amount of $185,396. Bond Refinance - 1993 Water Revenue Bonds and Water Utility's portion of the 1993 Solid Waste and Corporation Yard Bonds (D-050 & W -030) It is the recommendation of the Assistant City Manager that the City Council direct staff to continue to develop a refinancing plan for 1993 Water Revenue Bonds and Water Utility's portion of the 1993 Solid Waste and Corporation Yard Bonds due to the current low interest rate with a possible related savings in debt service payments of approximately $800,000. I Resolution - Adjusting budget allocations for traffic signal projects (B-130-070) It is the recommendation of the Assistant City Manager that Resolution No. 2002-152 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 68th Amendmentto City Budget Resolution No. 2001-104 appropriating $440,000 for various traffic signals for fiscal year 2002-03. MOTION: Made by Council Member McGeorge, seconded by Council Member Pohlmeyer, t~at 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, and Kight Council Members - None Council Members - None Council Members - Stegall Ordinance No. 2302 and Resolution Nos. 2002-147, 2002-148, 2002-149, 2002-150, 2002- 151 and 2002-152 are on file in the Office of the City Clerk. I PUBLIC HEARING - Proposed use of State Funds under the "Citizens Option for Public Safety" (COPS) Program; and RESOLUTION - Appropriating grant funds (G-l 00-170/B-130-070/ P-150-150) The hour of7 :00 p.m. having arrived, Mayor Kight opened the public hearing regarding use of State funds under the "Citizens Option for Public Safety" (COPS) Program. The following documents are on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing City Clerk Strohmayer advised that no protests were received. Police Lieutenant Moty explained that under the "Citizens Option for Public Safety" (COPS) Program, funding is available to local agencies, based on population, for funding personnel, equipment, and programs necessary to enhance front line law enforcement services to the community. Mr. Moty related that this year's allocation of$168,042 is slightly larger than previous years and legislation authorizing this funding requires that funds be used to supplement, not supplant, any existing funding for law enforcement services. Mr. Moty recommended that the City Council approve the proposed spending plan for COPS I funding, authorize the use of cost savings and interest earnings to help support the Mobile Data System, and adopt a resolution accepting and appropriating grant funds to obtain goods and services otherwise unattainable through the budget process. Mayor Kight determined that no one present wished to address this matter and closed the public hearing. 10/15/2002 223 I MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Cibula, approving the Redding Police Department's proposed spending plan for use of the "Citizens Option for Public Safety" (COPS) Program funds to obtain needed equipment not funded in the budget process; authorizing the use of cost savings and interest earnings from this grant to support the Mobile Data System; and adopting Resolution No. 2002-153, a resolution of the City Council of the City of Redding approving and adopting the 67th amendment to City Budget Resolution No. 2001-104 appropriating and accepting grant funds in the amount of $168,050 for the COPS program utilization plan for fiscal year 2002-03. The Vote: A YES: Council Members - Cibula, McGeorge, Pohlmeyer, and Kight, NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - Stegall R~solution No. 2002-153 is on file in the Office of the City Clerk. PUBLIC HEARING - Proposed use of2002 Local Law Enforcement Block Grant Funds; and RESOLUTION - Appropriating grant funds (G-100-070/B-130-070/P-150-150) The hour of7:00 p.m. having arrived, Mayor Kight opened the public hearing regarding the proposed spending plan for the 2002 Local Law Enforcement Block Grant funds from the U.S. Department of Justice. The following documents are on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing City Clerk Strohmayer advised that no protests were received. I Police Lieutenant Moty recalled that the City Council approved an application for block grant funding in the amount of $101,848 under the U.S. Department of Justice Local Law Enforcement Block Grant during its regular meeting of July 16,2002. He explained that this amount includes a 10% funding match from the City in the amount of $10,185. The Federal Block Grant funding program guidelines require that these funds be used in one of seven purpose areas with the intent of reducing crime and improving public safety, and must augment currently budgeted funds. He noted that the Local Law Enforcement Block Grant Advisory Board approved the proposed allocation of funds on September 26, 2002. Mr. Moty recommended that the proposed spending plan for the Law Enforcement Federal Block Grant funds be approved, and a resolution accepting and appropriating the grant funds for the Integrated Public Safety System, Mobile Data System, and Selected Traffic Collision Reduction Program be adopted. Mayor Kight determined that no one present wished to address this matter and closed the public hearing. I MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Cibula, approving the Police Department's proposed spending plan for use of the Local Law Enforcement Federal Block Grant Funds to provide $50,316 for costs related to the Integrated Public Safety and Mobile Data Systems, and $51,532 to continue the Selected Traffic Collision Reduction Program; and adopting Resolution No. 2002-154, a resolution of the City Council of the City of Redding approving and adopting the 65th amendment to City Budget Resolution No. 2001-104 accepting and appropriating $91,670 in Local law Enforcement Block Grant funds for fiscal year 2002-03. The Vote: A YES: Council Members - Cibula, McGeorge, Pohlmeyer, and Kight NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - Stegall Resolution No. 2002-154 is on file.in the Office of the City Clerk. PUBLIC HEARING - Appeal of Use Permit Application UP-4-01 by First United Pentecostal Church (L-01O-390) The hour of7:00 p.m. having arrived, Mayor Kight opened the public hearing regarding the appeal of Condition of Approval No. 16, Use Permit Application UP-4-01, for the First United Pentecostal Church on property located at 2591 Rancho Road. The following documents are on file in the Office of the City Clerk: 10/15/2002 224 Affidavit of Publication - Notice of Public Hearing Affidavit of Mailing - Notice of Public Hearing City Clerk Strohmayer advised that no protests were received. Development Services Director Hamilton recalled that the Use Permit Application (UP-4-0 1) and related Conditions of Approval were considered and approved on May 29, 2002, by the Board of Administrative Review (BAR) for the First United Pentecostal Church (Church). Condition No. 16 of the approval requires undergrounding of power lines along the Rancho Road property frontage. He stated that the Church appealed this Condition to the Planning Commission on July 23, 2002, at which time, the appeal was denied and the decision of BAR upheld. Planning Manager Keaney provided an overview of the Use Permit Application explaining that the Church's property on Rancho Road is zoned single-family residential and is surrounded by single-family residential homes as well as vacant land. The Use Permit application proposes construction of a 12,778 square foot gymnasium building on 6.9 acres of laQ.d at 2591 Rancho Road, with future plans to seek approval for a larger assembly building. Mr. Keaney observed that because the property is vacant with a zoning designation of 2 to 3.5 dwelling units per acre, issues were addressed in the use permit process related to land use compatibility. He pointed out that undergrounding of utilities is required for all development in that area. I Mr. Keaney advised that the applicant/appellant is appealing only Condition No. 16 because of the $65,000 cost associated with undergrounding utilities. He related that during the use permit process, Redding Electric Utility provided a cost estimate of $25,000 for undergrounding, but did not include telephone or cable costs. He explained, however, that relocation of overhead electric lines to accommodate the planned widening of Rancho Road will cost $60,000; and must be done at some point in the future. To implement the undergrounding of utilities will only add $5,000 to that amount. Mr. Keaney explained that Condition No. 16 is required by City policy to provide consistency with other projects and long-term planning for the area. He added that recent attempts to contact the applicant/appellant by phone and letter in order to discuss the issue were unsuccessful. Development Services Director Hamilton recommended denial of the appeal and asked the City Council to uphold Condition No. 16 requiring placement of utility lines underground. I First United Pentecostal Church Pastor David Bishop expressed opposition to Condition No. 16 alleging the following: 1. Redding Electric Utility based the need for five new poles (instead of the two existing poles) on maintaining four 900 angles to cross the church frontage. It is the position of the Church that only two poles will be necessary. 2. Redding Electric Utility diagrams are inaccurate and some of the utility poles are closer than they appear on the map. 3. The boundaries set forth in the diagrams of the development across Rancho Road are inaccurate with regard to the location of anchor poles and guy wires. Pastor Bishop stated that current cost estimates for necessary improvements and City permit fees amount to $218,559.75, while the proposed building and parking lot construction, including landscaping, are estimated at approximately $550,000. He asserted that the cost for improvements in relationship to the overall project are excessive and unnecessary. He further alleged that the Church has been treated unfairly and not afforded the same conditions provided to other churches and businesses in the area. He presented photos of churches and businesses having recently completed construction projects which were permitted to retain overhead power lines. Scott Bobo, Assistant Pastor for the First United Pentecostal Church, estimated that undergrounding utilities will cost between $70,000 and $75,000 as opposed to overhead utilities which cost approximately $3,000 per pole. He also alleged that the Church is being compelled to underground utilities when it was not required of other churches and businesses. I Mayor Kight determined that no one else wished to address this matter and closed the public hearing. Council Member Cibula asked if the cost of the eventual relocation of utility poles (when Rancho Road is widened) is included in cost estimates obtained by the Church. Scott Bobo 10/15/2002 225 responded that the $3,000 per pole estimate provided earlier does not include future relocation of the poles. Planning Manager Keaney acknowledged that the diagram map depicting the location of the property and poles is not a scale diagram, and it appears that one of the proposed poles would not be necessary. He reiterated, however, that it is counter to City policy to eliminate undergrounding of utilities. I In response to allegations that the Church was being held to a higher standard for improvements, Mr. Keaney explained that other area churches and businesses cited by Pastor Bishop are served by 115kv lines, and City policy permits overheading utility lines for voltages larger that 100kv. He also pointed out that overhead lines located to the rear of these properties will not be affected by future road widening. In response to Council Member Pohlmeyer, Assistant City Manager Perry explained that if . all vacant properties on Rancho Road were developed at the same time, costs for utility undergrounding per property owner would be reduced. Historically, however, land develops one property at a time, and it would be very difficult to demand that all undergrounding be done concurrently. With respect to widening Rancho Road, Mr. Perry clarified that all property owners are required to move poles and underground utilities as development occurs. Council Member Pohlmeyer asked if there was precedent for the City Council to overturn a decision by its Board of Administrative Review and Planning Commission. City Attorney Fuller responded that the City Council may take action without regard to previous decisions. Council Member Cibula suggested that staff review the issue with the applicant/appellant to resolve the factual disputes, but supported eventual undergrounding of utilities in the area. City Manager Warren concurred that staff should review the issue due to the new information presented this evening by the applicant/appellant. I Mayor Kight cautioned against setting a precedent which would encourage others to appear before Council requesting parity with regard to underground utility requirements. MOTION: Made by Council Member Cibula, seconded by Council Member Pohlmeyer, to defer action to the regular City Council meeting of November 19,2002, and directed staff to meet with representatives of the First United Pentecostal Church to attempt resolution of issues. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Cibula, McGeorge, Pohlmeyer, and Kight Council Members - None Council Members - None Council Members - Stegall ZUCKER REPORT IMPLEMENTATION COMMITTEE (A-050-080 & A-050-122) Deputy City Manager Starman explained that as "Ombudsman" for the Zucker Report Implementation Committee he had the opportunity to review several complaints regarding the Permit process and again found that City staff has gone the extra mile to assist applicants. He introduced Gus McIntyre, Zucker Report Implementation Committee Member, to provide a progress report on the Committee. I Mr. McIntyre reported that work continues on the Zucker Report with approximately half of the recommendations having been assigned measurable timelines and goals. He stated that the Committee's work should be complete in December and a report will be provided to the City Council at that time. No action was required on this informational item. UPDA TE CAPITAL IMPROVEMENTS - New Fire Stations (A-050-080 & C-050-275) City Manager Warren provided an update regarding progress for two new fire stations. He recalled that the plan for a new fire station at Buenaventura and Starlight Boulevards includes selling Fire Station Nos. 2 and 3 and using the proceeds to assist in construction of the new station to be centrally located between the two. At this time, Fire Station Nos. 2 and 3 properties are being appraised, and the most optimum site for the new station on Buenaventura Boulevard is now under review along with design elements. 10/15/2002 226 Mr. Warren explained that once a design is developed for the new fire station on Buenaventura Boulevard, elements of that design will be used for proposed Fire Station No. 8 to be located in the northeast area of the City. Although the site for Fire Station No.8 is already owned by the City, a primary concern is the cost to equip and man the station and the possibility of using General Plan reserve monies which would place completion of the station to the year 2007 or 2008. However, he noted that efforts are being made to reduce the amount of time involved, such as moving personnel from Fire Station No. 7 at Redding Municipal Airport, and devising an alternative to man the Airport fire station. He advised that a more definitive report will be provided in the future. Mayor Kight emphasized that the need for a fire station in the northeast section of the City is long standing and has increased overtime. He asked that staff return in 30 to 45 days with a proposal to build and man Fire Station No.8 within the next 12 to 18 months. I . Council Member Cibula concurred. Council Member McGeorge also concurred with the needs of the area but recommended exercising restraint in funding a new station at the cost of jeopardizing the City's budget and 1 0- Year Financial Plan. Jordan Taylor, President of the Shasta Hills Estates Home Owners Association, explained that Shasta Hills Estates is a planned development for senior citizens located across the street from the site ofthe proposed Fire Station No.8 on Chum Creek Road. He urged Council to move forward with construction of Fire Station No.8 citing the northeast area of the City as the fastest growing area in the community with the longest response times. He pointed to a recent vehicle fire which received an I8-minute fire response time. Thomas Lofthouse, Shasta Hills Estates resident, also urged construction of a new fire station in the northeast area. Virginia Dawes, Redding resident, read a letter signed by several residents of the northeast area expressing concern regarding continued City approval of additional development in an area already under-served by fire and emergency medical teams. Mayor Kight suggested that the Shasta Hills Estates Homeowners Association select two or three representatives to work with City Manager Warren and Fire Chief Gunsauls over the next month to provide input into fire station development. I JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY At the hour of 8:15 p.m., Vice Mayor/Agency Chair Cibula convened the Special Meeting of the Redding Redevelopment Agency for ajoint meeting with the City Council. RESOLUTION - Approving Redevelopment funds for certain improvements on Cypress Avenue (R-030-I45-350 & S-070-100-072) Deputy City Manager Starman provided an overview of the Report to City Council and Redevelopment Agency dated October 7, 2002, recalling that at its meeting on February 5, 2002, the Redding Redevelopment Agency (Agency) allocated up to $100,000 for improvements to Cypress A venue to facilitate redevelopment ofthe Safeway, Rite-Aide, and Maximum Comfort parcels into a 50,000 square foot Safeway store. At that time, it was stipulated that if State Transportation Improvement Program (STIP) funds could not be used for off-site improvements, Agency tax increment funds would be utilized. He reported that it has been determined that STIP funding is not available, and in order to utilize Agency tax increment funds it is necessary that the City Council and the Agency make findings as follows: 1. The public improvements are of primary benefit to the Market Street Redevelopment Project Area (Project Area). 2. No other reasonable means of financing the public improvements are available to the community. 3. The payment of funds for the development of the public improvements will assist in the elimination of blighting conditions within the Project Area and is consistent with the Project Area's adopted Implementation Plan. 4. The provision ofthe public improvements is necessary to effectuate the Project Area. I 10/15/2002 227 Mr. Starman added that Safeway requested that their project contractor be authorized to complete the frontage work on Safeway's portion of Cypress Avenue in order to meet its timelines and avoid construction conflicts. Mr. Starman recommended that the City Council and Agency make findings and adopt the respective resolutions to allocate tax increment funds not-to-exceed $100,000 for frontage improvements. Additionally, the Agency must also authorize an agreement with Safeway to facilitate frontage improvements. I MOTION: Made by Council Member McGeorge, seconded by Council Member Polilmeyer, making findings and adopting Resolution No. 2002- 155, a resolution of the City Council of the City of Redding approving the use of Redevelopment funds to assist with certain improvements on Cypress Avenue associated with development of the Safeway Food and Vehicle Fuel Center. The Vote: A YES: Council Members - Cibula, McGeorge, Pohlmeyer, and Kight NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - Stegall Resolution No. 2002-155 is on file in the Office of the City Clerk. At the hour of 8:21 p.m., Vice Mayor/Agency Chair Cibula recessed the Special Meeting of the Redding Redevelopment Agency. I RESOLUTION - Authorizing an application for Home Investment Partnerships (HOME) Program funds; and AGREEMENT - Community Housing Improvement Program (CHIP) for development and construction of an affordable housing project (G-100-075-200) Deputy City Manager Starman highlighted the Report to City Council dated October 7,2002, recalling thatthe City Council at its meeting of August 20, 2002, approved circulation of a request for qualifications to develop affordable rental housing units as part of the Home Investment Partnerships Progr.am (HOME) application process. Because of its overwhelming qualifications, Community Housing Improvement Program (CHIP), a well- known and well-established non-profit organization, was selected by an evaluation panel as a potential developer for property on Linden Avenue in the Martin Luther King, Jr. neighborhood. He added that the State's Notice of Funding Availability (NOFA) was increased this year to $3.5 million per agency. Mr. Starman recommended that a resolution be adopted authorizing the City Manager to submit an application package for two activities: 1) $600,000 for the Rental Rehabilitation Program; and 2) $3.5 million for new rental construction for federal fiscal year 2002 funding under the HOME Program with the California Department of Housing and Community Development. He noted that staff was informed the two amounts were acceptable in the application format, however, the State has amended some application rules and it is unknown at this time which rules will apply. He asked that the City Council provide staff with the flexibility to shape the application in the most competitive manner possible to meet City needs. He also recommended that the City Council select CHIP to partner with the City for affordable housing construction. Council Member McGeorge explained that he will abstain from discussion and voting on the matter due to property holdings in the area. Council Member Cibula advised he, too, will abstain from discussion and voting due to family member holdings in the area and the possibility of a perceived conflict. I City Attorney Fuller advised that with the absence of Council Member Stegall and two abstentions, a quorum no longer exists to take action on this item. Mr. Starman cautioned that the issue was time sensitive and may require a special meeting. It was the consensus of the City Council to hold a Special meeting before the end of the month to consider this matter. FINANCING PLAN - Acquisition and rehabilitation of a multi-family apartment complex (G-100-075-101) Deputy City Manager Starman explained that the proposed financing Iplan to facilitate acquisition and rehabilitation of a multi-family apartment complex on Eugenia Avenue will enable the Community Revitalization and Development Corporation (CRDC) to create 10/15/2002 228 housing for low-income tenants in the City. However, he stated that CRDC has a 30-day commitment for a residential purchase agreement with the owner of the six-unit apartment complex and is proposing to acquire and rehabilitate the property using the City Home Investment Partnerships Program (HOME). In that regard, he explained that CRDC is requesting the following: 1) a loan of HOME funds in the amount of $310,000 for acquisition, rehabilitation, contingency, and loan processing; 2) a grant in the amount of $2,100 from the Community Assistance Weatherization Program for insulation, weatherstripping, and caulking; 3) a grant in the amount of$2,100 from the Neighborhood Paint Voucher Program for interior and exterior paint materials; and 4 ) additional HOME funds in the amount of$35,000 to accommodate State prevailing wages. Mr. Starman stated that because this property is virtually located in the same area as the previous item, the same abstentions from Council Members McGeorge and Cibula will apply due to property holdings in the area. In light of this fact, action must be deferred to a special meeting to be held before the end of the month. I It was the consensus of the City Council that this matter also will be considered during the special meeting before the end of the month. PUBLIC COMMENT (W -030) The following Redding residents, urged support for Measure A on the November 5, 2002, ballot citing health hazards of fluoride: Donna Williamson, Fulton Doty, Betty Doty, Dorothy Homer, Michael Czehatowski, and Roberta Withrow. ADJOURNMENT , There being no further business, at the hour of8:48 p.m., Mayor Kight declared the meeting adjourned. APPROVED Q47~ Mayor I ATTEST: ~~ City Clerk' - "1 I 10/15/2002