HomeMy WebLinkAboutMinutes - City Council - 2003-02-18
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City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress Avenue,
Redding, California
February 18,2003, 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Mayor Emeritus Archer Pugh.
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A moment of silence was provided in lieu of an invocation.
The meeting was called to order by Mayor Cibula with the following Council Members
present: Kight, Mathena, Pohlmeyer, and Stegall.
Also present were City Manager Warren, Assistant City Manager Perry, Deputy City
Manager Starman, Assistant City Attorney Frediani, Electric Utility Director Feider,
Development Services Director Hamilton, Administrative Services Director Bachman,
Community Services Director Niemer, Senior Planner Hanson, Senior Redevelopment
Project Coordinator Tillman, City Clerk Strohmayer, Assistant City Clerk Sherman, and
Executive Secretary Stribley.
Approval of Minutes - Regular and Special meetings of February 4,2003.
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Approval of Payroll and Accounts Payable Registers
(A-050-100-500)
It is recommended that Accounts Payable Register No. 15, check numbers 804045 through
804571 inclusive, in the amount of $2,755,168.34, for the period of February 4, 2003,
through February 14, 2003; Wire Transfers for the period of February 1, 2003, through
February 15,2003, in the amount of $658,378.35; and Payroll Register No. 16, electronic
deposit transaction numbers 120575 through 121254 and check numbers 502653 through
502878 inclusive, in the amount of $1,778,595.49, for the period of January 19, 2003,
through February 1,2003, be approved.
TOTAL: $5,192,142.18
Resolution - Appropriating funds to extend the Sports Complex driveway to Old Oregon
Trail
(B-130-070 & P-050-600-200)
It is the recommendation of the Assistant City Manager that Resolution No. 2003-17 be
adopted, a resolution of the City Council of the City of Redding approving and adopting the
8pt amenqment to City Budget Resolution No. 2001-104 appropriating $261,700 for
construction of the Sports Complex driveway to Old Oregon Trail for fiscal year 2002-03.
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Renewal Agreement - Shasta County Opportunity Center
(A-070-020 & C-050-025)
It is the recommendation of the Support Services Director that the Agreement with the Shasta
County Opportunity Center (SCOC) for janitorial services at the Civic Center in the amount
of $104,700 annually and other various locations in the amount of $98,892 annually be
renewed for a term of three years expiring February 28, 2006, including a three percent
annual increase, with no other changes in terms or conditions.
Agreement Amendment - Horizon Air Industries, Inc.
(C-070-100 & A-090-100)
It is the recommendation of the Support Services Director that the Third Amendment to the
License and Permit for Commercial Activities with Horizon Air Industries, Inc., at Redding
Municipal Airport be approved to provide an additional 111 square feet of space for a total
monthly amount of $1,568.67, effective November 1, 2003, with a 2% increase annually,
with all other terms and conditions to remain the same, and that the Mayor be authorized to
execute same.
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Resolution - Appropriating building maintenance reserve funds for safety repairs at the
Downtown Mall
(B-130-070/ A-070-020/M-010-200)
It is the recommt:ndation of the Support Services Director that Resolution No. 2003-18 be
adopted, a resolution ofthe City Council of the City of Redding approving and adopting the
84th amendment to City Budget Resolution No. 2001-104 appropriating $75,000 for safety
repairs at the Downtown Mall for fiscal year 2002-03.
Resolution ofIntention - Abandoning the street right-of-way on Butte Street between Court
and West Streets and the alley between Butte and Tehama Streets (A-7-02); and
Setting Public Hearing - March 18, 2003
(A-010-100)
It is the recommendation of the Development Services Director that Resolution No. 2003-19
be adopted, a resolution of the City Council of the City of Redding declaring its intention to
vacate Butte Street between Court and West Streets, and the alley between Butte and Tehama
Streets (A-7-02), requested by Shasta County. It is further recommended that a Public
Hearing be set on March 18, 2003, to consider the abandonment of said right-of-way.
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Mayor Cibula advised he will abstain from voting on this issue due to family property
holdings in the area.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Kight, Mathena, Pohlmeyer, and Stegall
Council Members - None
Council Members - Cibula
Council.Members - None
Tentative Subdivision Map - Placer Pines Subdivision
(S-101-024)
It is the recommendation of the Development Services Director that the City Council accept
the report regarding Planning Commission approval of Tentative Subdivision Map S-5-02,
Placer Pines Subdivision, located on the west side of Placer Street between Thompson Lane
and Record Lane, by Shasta Lake LLC, pursuant to City Council Policy No. 1703 which
directs that a report be forwarded to the City Council if approval of a tentative subdivision
map by the Planning Commission requires off-site acquisition for public-street right-of-way
which may necessitate the City's use of eminent domain.
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Resolution - Accepting and appropriating grant funds for improvements to Tiger Field
(B-130-070/P-050-600-250/G-100-170)
It is the recommendation of the Community Services Director that Resolution No. 2003-20
be adopted, a resolution ofthe City Council ofthe City of Redding approving and adopting
the 83rd amendment to City Budget Resolution No. 2001-104 accepting and appropriating
$500,000 in grant revenue for improvements to Tiger Field located at South City Park.
Resolution - Amending City Council Policy No. 408 - Investments
(A-050-060-555)
It is the recommendation of the City Treasurer that Resolution No. 2003-21 be adopted, a
resolution of the City Council ofthe City of Redding amending City Council Policy No. 408
entitled "Investment Policy" to incorporate changes resulting from annual reviews.
Resolution - Authorizing an account for the payment of Convention Center show settlements
(C-050-050)
It is the recommendation of the City Treasurer that Resolution No. 2003-22 be adopted, a
resolution of the City Council ofthe City of Redding authorizing the City Treasurer to open
an account at Wells Fargo Bank for the payment of Redding Convention Center show
settlements directly following performances held at the Conve~tion Center, not-to-exceed
$20,000 operated on an imprest basis.
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Equipment Purchase - Self-contained breathing apparatus and complimentary equipment
from Bauer Compressors
(B-050-100 & P-150-070)
It is the recommendatio~ of the Fire Chief that the City Council authorize the purchase of82
self-contained breathing apparatus and complimentary equipment from Bauer Compressors,
Inc. of San Francisco in the amount of $251 ,078 to replace equipment purchased in 1989.
Bauer Compressqrs is the sole source distributor of this equipment in California.
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Resolution - Approving amendment to Service Employees International Union (SEIU)
Supervisory - Confidential Employees Unit Memorandum of Understanding (MOU) adding
Box Office Supervisor classification
(P-100-OSO-126)
It is the recommendation of the Administrative Services Director that Resolution No. 2003-
23 be adopted, a resolution of the City Council ofthe City of Redding amending the Exempt
Employee Schedule of Classifications and Salary Ranges for the Service Employees
International Union-Supervisory/Confidential Unit (SEIU) to add the classification of Box
Office Supervisor with a salary range of $2,764 to $3,889 effective February 16, 2003.
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Final Map and Subdivision Agreement -Country Heights Subdivision, Unit IS, Phase 4
(S-1 00-1 08)
It is the recommendation of the Development Services Director that the City Council approve
the final map for Country Heights Subdivision, Unit IS, Phase 4 (S-8-94), located at the end
of Sunglow Drive near the intersection of Sunglow Drive and Sounding Brook Court, by
Signature-Northwest Partnership. It is also recommended that the Mayor be authorized to
execute the subdivision agreement and the City Clerk be instructed to file the map with the
Shasta County Recorder.
Resolution - Authorizing destruction of certain inactive records
(A-OSO-OSS-7S0)
It is the recommendation of the City Clerk that Resolution No. 2003-24 be adopted, a
resolution of the City Council of the City of Redding authorizing destruction of certain
records which have met retention requirements and have been reviewed by the City Attorney
and appropriate departments.
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MOTION: Made by Council Member Kight, 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 - Kight, Mathena, Pohlmeyer, Stegall, and Cibula
Council Members - None
Council Members - None
Council Members - None
Resolution Nos. 2003-17, 2003-18, 2003-19, 2003-20, 2003-21, 2003-22, 2003-23, and
2003-24 are on file in the Office of the City Clerk.
JOINT MEETING OF THE CITY COUNCIL AND REDDING HOUSING
AUTHORITY
PUBLIC HEARING
RESOLUTION - Authorizing issuance of Multi-Unit Rental Housing Revenue Refunding
Bonds by the Redding Housing Authority
(D-OSO-200 & H-lS0-300)
The hour of 7:00 p.m. having arrived, Mayor Cibula opened the public hearing regarding
issuance of Multi-Unit Rental Housing Revenue Refunding Bonds by the Housing Authority
for the River Oaks Retirement Center Project.
The following document is on file in the Office of the City Clerk:
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Affidavit of Publication - Notice of Public Hearing
City Clerk Strohmayer advised that no protests were received.
At the hour of 7:04 p.m., Redding Housing Authority Vice Chair Mathena convened the
Special Meeting of the Housing Authority for a joint meeting with the City Council.
Administrative Services Director Bachman provided an overview of the Report to City
Council and Report to Housing Authority dated February 12, 2003, recalling that the original
bonds provided funding for the River Oaks Retirement Center (River Oaks) developed by
Farr Capital. He recalled that the bonds were refunded and reissued in 1993 providing
savings in debt service to the owners of River Oaks and noted that current market conditions
will provide another savings to debt service of River Oaks in an estimated amount of
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$375,000. He explained that the City's and Housing Authority's interests are not affected
by the proposed transaction because approval ofthe refun<~ and reissuance will be provided
as a courtesy to the owners of River Oaks who have agreed to fund all incurred expenses
connected with the proposal.
Mr. Bachman recommended adoption of the resolution approving issuance of the Multi-Unit
Rental Housing Revenue Refunding Bonds by the Housing Authority for the River Oaks
Retirement Center.
Mayor Cibula determined that no one present wished to address this matter and closed the
public hearing.
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MOTION: Made by Council Member Kight, seconded by Council Member Stegall,
adopting Resolution No. 2003-25, a resolution of the City Council of the City of Redding
approving the issuance of Multi-Unit Rental Housing Revenue Refunding Bonds by the
Hqusing Authority for the River Oaks Retirement Center in the amount of $4,975,000.
The Vote: "
A YES: Council Members - Kight, Mathena, Pohlmeyer, Stegall, and Cibula
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2003-25 is on file iQ. the Office of the City Clerk
There being no further business, at the hour of7:08 p.m., Vice Chair Mathena adjourned the
Special Meeting of the Redding Hollsing Authority.
PUBLIC HEARING - Redding Electric Utility Rate Increases
RESOLUTION - Approving Redding Electric Utility Rate Increases
(E-090-100)
The hour of7:00 p.m. having arrived, Mayor Cibula opened the public hearing regarding the
proposed increase of Redding Electric Utility Rates.
The following document is on file in the Offic,e of the City Clerk:
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Affidavit of Publication - Notice of Public Hearing
City Clerk Strohmayer advised that letters were received from Karen Margrave of Concept
Development Corporation, J.D. Smith, and Gary L. Banks expressing opposition to increased
Electric Utility rates.
Electric Utility Direc~or Feider provided an overview of the Report to City Council dated
February 7, 2003, and made a Powerpoint presentation regarding operation of Redding
Electric Utility (REU) ,and. the need for increas~d electric rates. He explained that the
proposed 6.9% increa$e for tl1.is year is comprised of: 1) 2.85% to provide funding for the
State-mandated Public Benefits P!ogram; 2) 1:6 % increase in the base customer service
charge to cover increased expenses for reading meters, issuing bills, revenue collection and
processing; and 3) 2.45% co~t-of-doing business increase to offset inflationary effects on
REU such as wages and benefits. A~ditionally, he pointed out that REU maintains a 20%
fund reserve which may be jeopardized if the adjustment is not approved. He explained that
the 20% reserve ens,ures smooth REU operation and also provides low-interest financing of
capital prpjects when necessary. Funds will be needed for future capital projects, such as
Generating Unit No.5, in order to maintain service reliability and also to purchase power.
Mr. Feider pointed out that the base customer rate has not .been increased since 1987, and
although there wa~ a'general rate increase in 1995 and a 23% electric rate surcharge was
added in 1997, there have been no other rate increases since that time. He advised that no
other rate increases were considered until the electric rate surcharge was retired last year.
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Mr. Feider recommended adoption of the resolution increasing the electric utility rate by
6.9% effective March 28, 2003, and subsequent 4% cost-of-doing business increases in
January of2004 and 2005. He also recommended that the Lifeline discount rate (providing
assistance to seniors 62 years and older and permanently disabled customers with economic
need) be increased from 20% to 25%, the Commercial Rate Schedule Time-of-Use service
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be simplified, and the Peak Load Reduction and Industrial Interruptible services be
eliminated.
Mayors Emeritus Archer Pugh and Carl Arness expressed support for the electric rate
increase citing benefits to the citizens of Redding now and in the future by maintaining the
integrity and stability of Redding Electric Utility.
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Richard Johnson, Redding resident, urged acceptance of the rate increase for a one-year
period and reconsideration of any future increases. He suggested that the rates be reviewed
annually and opined that a convincing argument for a rate increase at this time was not
demonstrated.
Stephen Nesteroke, Redding resident, expressed opposition to the rate increase citing the
inability of low-income and fixed-income residents to bear any increase in electric utility
rates.
Peter Scales, Redding resident, expressed opposition to the rate increase and opined ifit was
necessary, it should be tied to the consumer price index. He suggested formation of a
citizens' electric rate commission to provide review and input on future rate increases.
In response to Mayor Cibula, Mr. Feider stated that the City, through its membership in the
Modesto-Santa Clara-Redding (M-S-R) Public Power Agency, invested in the San Juan, New
Mexico power plant, and the City's share of that investment produces approximately 12%
of REU's electric portfolio. He noted that the costs for electricity from San Juan is
approximately 5.5~ per kilowatt hour, but is less than most available market-rate purchases
making it a cost-saving investment for the City.
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Mr. Feider explained that REU pays "in-lieu" fees to the City's General Fund for capital
improvement projects in an amount equivalent to a 1 % property tax that would typically be
paid by a homeowner. He noted that all City utilities pay "in-lieu fees," and REU's portion
is approximately $3 million per year.
Mayor Cibula determined that no one else wished to address the matter and closed the public
hearing.
Councilmembers Kight, Pohlmeyer, Stegall, and Mathena supported the proposed rate
increase and pointed out that the Redding Electric Utility is regarded as a model utility
throughout the State. Mayor Cibula concurred and thanked Electric Utility staff, on behalf
of the City Council, for a doing a superb job.
MOTION: Made by Council Member Kight, seconded by Council Member Pohlmeyer,
adopting Resolution No. 2003-26, a resolution of the City Council of the City of Redding
establishing the Electric Utility rates for service to customers within the corporate limits of
the City of Redding, effective March 28,2003, in the amount of an additional 6.9%, followed
by cost-of-doing business adjustments in an additional amount of 4% effective January 1,
2004 and an additional amount of 4% effective January 1,2005; amending Lifeline service
to reflect a 25% discount; simplification of the Commercial Time-of-Use service; and
eliminating Peak Load Reduction and Industrial Interruptible services. The Vote:
A YES: Council Members - Kight, Mathena, Pohlmeyer, Stegall, and Cibula
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
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Resolution No. 2003-26 is on file in the Office of the City Clerk
APPOINTMENTS - Board of Appeals
(B-080-050)
MOTION: Made by Council Member Kight, seconded by Council Member Pohlmeyer,
appointing Joe Cerami and Phil Geist and reappointing Fred Bergstrom and Molly Bigelow
to the Board of Appeals to serve four-year terms expiring January 1,2007.
The Vote: Unanimous Ayes
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UPDATE ON MAJOR PROJECTS - Sports Complex
(A-050-080 & P-050-600-200)
Assistant City Manager Perry provided a PQwerpoint presentation depicting Sports Complex
site grading, installation of ~tormwater pipe~, and beginning construction on the restaurant
building. He stated that 16% of the project is complete with anticipated final completion in
October 2003.
No action was required on this informational item.
UPDATE ON MAJOR PROJECTS - Trail Projects
(A-050-080 & P-050-460)
Senior Planner Hansen reported that to date, there are 27 miles oftrails. He advised that trail
projects are selected on the basis of those which will provide the greatest public benefit such
as extensions to Sacramento River Trail, trailhead enhancements, and direct connections to
neighborhood recreational cultural and commercial centers. The direct connections and
extensions allow use of the trail system without having to drive to a specific trailhead.
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Mr. Hansen provided a Powerpoint presentation illustrating that the River-to-Rail Trail
system will extend the River Trail 12 miles to Shasta Dam. He noted that the project will
be in partnership with the Bureau of Land Management, the Bureau of Reclamation utilizing
the Army Corps of Engineers for design work, and the McConnell Foundation. He also
provided a preseptation on the O~d 99 Project to convert Highway 99, abandoned in 1937,
into a trail corridor. This project will partner with Sacramento Watershed Action Group
(SWAG) and the Department of Water Resources. Mr. Hansen stated that within the next
five years, there will be approximately 54 miles of trails.
No action was required on this ip.formational item.
REQUEST TO LEASE CITY-OWNED LAND - Riverland Drive
(C-070-100 & P-050-665)
Assistant City Manager Perry advised that a request was received from Peter Loewenstein
and Tony Ujdur to lease a portion of City-owned land ~m Riverland Drive for development
of a golf driving range. He stated that the property is located outside City limits and the
proposed use is not consistent with current Shasta County zoning. The request also included
a rezoning, with the potential tenants responsible for costs incurred.
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Mr. PerrY recalled that in 1989, the City proposed to use the property for a five-field softball
complex, but neighborhood opposition was considerable and the City withdrew the project.
Since that time, portions of the property have been used for agricultural purposes.
Mr. Perry pointed out that the City originally acquired the property in 1985 with the intent
to retain Sacramento River frontage. It was also considered as a possible site for realignment
of Riverland Drive to provide future traffic mitigation.
Mr. Perry recommended that the City Council decline the proposed lease for the reasons
stated above.
MOTION: Made by Council Member Kight, seconded by Council Member Stegall,
declining the offer from Peter Loewenstein and Tony Ujdur to lease a portion of City-owned
land located on Riverland Drive for a golf driving range due to the incompatibility of the
proposed project to existing Shasta County zoning. The Vote: Unanimous Ayes
DOWNTOWN HOUSING INITIATIVE
(R-030~ge) 5{b 100
City Manager Warren recalled that in 1999, the Redding Redevelopment Agency adopted a
housing strategy emphasizing revitalization and focusing housing resources in the Parkview
(Parkview), Martin Luther King, Jr. (MLK), and Downtown (Downtown) Neighborhoods.
In 1999 and 2001, Parkview and MLK revitalization plans were adopted and are currently
under implementation.
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Mr. Warren poil}ted out that Zimmerman- V olk Associates were commissioned to prepare a
"Market Position Analysis" (Analysis) for Parkview an~ review the Downtown area as well.
He stated that the Analysis indicates a demand for market-rate and low-income housing in
the Downtown area. He acknowledged that although City staff is currently very busy with
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priority projects, a project such as this is worth extra effort. Mr. Warren related that three
components to a successful Downtown revitalization are: 1) infrastructure, 2) commercial
businesses, and 3) housing. He said the Analysis indicated there will be a demand for 250
to 400 housing units, both rental and for-sale, in the Downtown area over the next five years.
The price range will afford housing opportunities for moderate income families and the
proposed project will be named "Downtown 300."
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Senior Redevelopment Project Coordinator Tillman recommended that the City Council
authorize staff to seek out potential developers and opportunity sites for new housing in the
Downtown area. He noted that a report would be returned at a future date with potential
sites, developers, and funding mechanisms for City Council consideration.
Council Member Pohlmeyer supported affordable and market-rate housing in the Downtown
area but expressed concern that diversion of staff time and resources would diminish efforts
currently underway in the Parkview and MLK Neighborhoods. Deputy City Manager
Starman responded that staff expressed similar concerns but, after consideration, determined
that all Neighborhood projects can be coordinated so that none will be diminished by
another. He pointed out that it will be some time before staff is prepared to propose actual
construction in the Downtown area, but planning must be initiated in order to move forward
with construction in the future.
In response to Council Member Pohlmeyer, Mr. Starman explained that staff assigned to
develop the Stillwater Industrial Park project will not be working on the Neighborhood
projects and, therefore, will not have time or resources conflicts.
Council Member Kight cautioned that market-rate housing not be overlooked in lieu oflow-
income housing and urged a combination of both in the project. He also asked that nothing
on the current Priority List be set aside in order to begin this new project.
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Mayor Cibula and Council Members Stegall and Mathena expressed support for the project
and believed it is a step forward toward revitalization of the Downtown area and a positive
move toward increasing affordable housing in the City.
Sandra Van Larsen, representing Independent Living Services of Northern California, stated
that her organization provides disability services and opined that all forms of housing are
needed in the City. She asked that single low-income persons not be overlooked during
planning.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
authorizing staffto identify potential housing sites, developers, and lenders for new housing
projects of up to 300 units in the Downtown area. The Vote: Unanimous Ayes
MID- YEAR BUDGET REVIEW; and
RESOLUTION - Approving budget adjustments for fiscal year 2002-03
(B-130-070)
Administrative Services Director Bachman summarized the Report to City Council dated
February 7,2003, noting that although the City's economy is doing well and expenditures
are consistent with projections, staff is proceeding cautiously because of shortfalls in the
State budget.
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Mr. Bachman recommended the following changes to the General Fund for fiscal year 2002-
03:
1.
2.
Increase building related revenues by $500,000 on a one-time basis.
Increase General Government expenditures by $10,000 for the City Clerk's
Department for costs associated with the recent "Measure A" ballot initiative and
codification costs related to the new Zoning Ordinance.
Increase Development Services expenditures by $17,950 for costs associated with
higher than anticipated level of building activity.
Increase Non-Departmental expenditures by $500,000 for costs associated with
higher than anticipated severance pay within the General Fund for Police and Fire
Department retirees due to the new contract retirement package.
3.
4.
He pointed out that the General Fund will end fiscal year 2002-03 with a 19.3% reserve and
the General Fund reserve is not projected to fall below 7.8% during the 10-Year Financial
Plan.
2/18/2003
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Mr. Bachman recommended changes in the following non-General Fund items:
1. Increase Worker's Compensation line item by $850,000 (cases are not increasing, but
each case is more expensive medically).
2. Increase the Airports Fund by $12,500 to purchase a new vehicle.
3. Increase the Community Services Department by $72,000 for tourism-promotion
expenses.
Mr. Bachman recommended approval of the stated changes and adoption of a resolution
increasing appropriations in the amount of$1 ,462,450 and revenue projections by $512,500.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Kight,
adopting Resolution No. 2003-27, a resolution of the City Council of the City of Redding,
approving and adopting the 82nd amendment to City Budget Resolution No. 2001-104
increasing appropriations by $1,462,450 and revenue projections by $512,500 for various
funds for fiscal year 2002-03. The Vote:
A YES: Council Members - Kight, Mathena, Pohlmeyer, Stegall, and Cibula
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
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Resolution No. 2003-27 is on file in the Office of the City Clerk
PUBLIC COMMENT
(A-050-060 & P-050)
\ Ken Strathman, Redding resident, stated that when he moved to Hacienda Heights
Subdivision ten years ago, he understood that the lot next to him was reserved for a future
park site. He stated this vacant lot has become an eyesore with overgrown weeds and the
security fence has collapsed. He inquired as to when the lot would be developed into a park.
Community Services Director Niemer explained that the Park Master Plan Committee did
not recommend that particular lot for future development as there are larger parks in the area
slated for funding. She noted that the City no longer accepts such small lot dedications
because the size tends to make the lots unusable, and this particular lot will be recommended
as surplus property when the Park Master Plan is brought to the City Council for
consideration this year. .
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ADJOURNMENT
There being no further business, at the hour of 8 :40 p.m., Mayor Cibula declared the meeting
adjourned.
APPROVED
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ATTEST:
~.~
I t
City Clerk '.f
2/18/2003