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HomeMy WebLinkAboutMinutes - City Council - 2011-04-05 51 City Council, Regular Meeting Civic Center Council Chambers 777 Cypress Avenue Redding, California April 5, 2011 6:00 p.m. The Pledge of Allegiance to the Flag was led by Jason Waybright. I The Invocation was offered by Police Chaplain Tom Nelson. The meeting was called to order by Mayor McArthur with the following Council Members present: Bosetti, Dickerson, Jones, and Sullivan. Also present were City Manager Starman, City Attorney Duvernay, Assistant City Manager Tippin, Public Works Director Crane, Development Services Director Hamilton, City Clerk Mize, and Executive Assistant Grimm. The City Manager introduced Department Directors __ that were in attendance: Detwiler, Hansen, Hauser, Kersten, Kreitman, Niemer, and Strong. ------------------- PUBLIC COMMENT [A-050-060] Michael Allen made a request relative to public speaker protocol. [M-020] Sean Merritt requested cooperative effort from the City and Council to modify the existing medical marijuana ordinance. I [A-050-060] Adrian Rogers extended an invitation to the 26th Annual Community Leaders Prayer Breakfast on April 22, 2011. [E-120-150-676] Greg Washburn had questions regarding remaining bond proceeds relative to Redding Power Plant Generating Unit No.6. [A-050-060] Don Kirk requested the City's assistance with establishing a homeless camp and described volunteers willing to provide labor. [S-050-260-600] Randall Faulkner presented comparative prevailing wage scenarios for the cities of San Jose and Redding. PRESENT AnON - Community Services Advisory Commission [B-080-128] On behalf of the City Council and staff, Mayor McArthur presented an Appreciation Clock to Jason Waybright and Community Services Director Niemer thanked him for his seven years of service on the Community Services Advisory Commission. I PRESENT A nON - by Mark Lascelles, President, Economic Development Corporation of Shasta County [B-080-150] Mr. Lascelles provided a PowerPoint presentation regarding the Economic Development Corporation (EDC) of Shasta County, incorporated herein by reference, that highlighted EDC's efforts over the past five years. He acknowledged Stillwater Business Park as an asset to both the City and the County. Mr. Lascelles relayed EDC's focus to market Redding as a region, differentiated from the state and its difficult reputation, and emphasized the importance of a pro-business climate. He described the competitive analysis the p:DC is undertaking, comparing Redding to seven other states. 04/05/2011 52 CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Minutes - Regular Meeting of March 15,2011 Approval of Payroll and Accounts Payable Registers [A-050-100-500] It is the recommendation of the Finance Director that the City Council approve Accounts Payable Register No. 18, for the period of March 14, 2011, through March 31, 2011, for a total of $14,860,506.06, for check numbers 891613 through 892126, inclusive, ACH Transfer numbers 7676 through 7737, inclusive, and Wire Transfer numbers 3056 through 3096, inclusive; and Payroll Register No. 19, for the period March 6, 2011, through March 19,2011, in the amountof$2,534,529.53, forelectronicdeposittransactionnumbers 298705 through 299484, inclusive, and check numbers 548729 through 548815, inclusive. SUMMARY TOTAL: $17,395,035.59 I Treasurer's Report - February 2011 [A-050-100-600] It is the recommendation of the City Treasurer that the City Council accept the Treasurer's Report for the month of February 2011. Total Treasurer's Accountability $128,340,549.68 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities $196,116,635.14 ACR133 Report and Cash Reconciliation - February 2011 [F-205-095-650] It is the recommendation of the Finance Director that the City Council accept the ACR133 Report and the Proof of Cash Reconciliation for February 2011. Proiect Status Report - March 2011 [A-050-080] It is the recommendation ofthe City Manager that the City Council accept the Project Status Report for the month of March 2011. I Lease Agreement - Peri Hangar No. 1 at Redding Municipal Airport [C-070-1 00/ A -090-100] It is the recommendation of the Support Services Director that the City Council approve the Hangar Lease Agreement with Rex Daniels for Peri Hangar No.1 at the Redding Municipal Airport for the purpose of aircraft storage. Letter of Intent - IASCO Flight Training for a training center at Redding Municipal Airport [A -090-100] It is the recommendation ofthe Support Services Director that the City Council authorize the Mayor to execute a Letter ofIntent with IASCO Flight Training for a flight training center at Redding Municipal Airport and direct staffto meet with IASCO to explore and discuss the facilities required for the project and report back to the City Council. Monthly Financial Report - Redding Electric Utility - February 2011 [B-130-070] It is the recommendation of the Electric Utility Director that the City Council accept Redding Electric Utility's Monthly Financial Report for February 20 11. Billed retail revenue through February was $1,931,632 (2.8 %) below projections for the eight-month period and total wholesale sales were $31,663,331 (247.4%) above projections. Overall, operating I revenue through February came in $29,716,633 (35.9%) above plan. The combined costs for generation, purchases from the Western Area Power Administration, contracts, and the spot market were $24,934,706 (42.6%) above budget projections through February. Total operating expenses through February were $2,794,484 (14.4%) below budget. The Utility's net operating results for the first eight months of the fiscal year are positive and are $7,576,411 better than budget projections. Debt service payments to-date total $4,343,450. Capital expenditures through February were $1,809,068 for revenue-funded projects and $8,231,601 for bond-funded projects, most of which is for construction of Redding Power Plant Generating Unit No.6, which continues to be within the approved budget and is currently in the final testing phase. The electric utility unrestricted cash balance at the end of February was $29.7 million. 04/05/2011 53 Letters - Opposing California Assembly Bill 438 related to contracted library services [L-040-300] It is the recommendation ofthe Community Services Directorthat the City Council authorize the Mayor to sign letters to Assemblymen Smyth, Nielsen, and Williams requesting their opposition to California Assembly Bill 438, related to contracted library services. I Resolution -Proclaiming various dates in May 2011 as California Peace Officers' Memorial Day(s), Shasta County Peace Officers' Memorial Day, and National Police Week [A-050-060-600/P-OI0-050/P-150-150] It is the recommendation of the Chief of Police that the City Council join law enforcement nationwide to honor slain police officers and adopt Resolution No. 2011-38 proclaiming May 1 and May 2,2011, as California Peace Officers' Memorial Days; May 5,2011, as Shasta County Peace Officers' Memorial Day; and May 15 through May 21,2011, as National Police Week in the City of Redding. Monthly Financial Report - General Fund - February 2011 [B-130-070] It is the recommendation of the Finance Director that the City Council accept the monthly General Fund Financial Report for February 2011. Total revenue to date is $38.1 million or $358,837 (1 %) above staffs cash flow projection. Expenditures at month end, excluding encumbrances, total $42,621,967 or $5,254,315 (11.6%) below staffs projection. Encumbrances total $1,857,044. Notice of Completion - Bid Schedule No. 431'5 (Job No. 2350), Palisades Pressure-Reducing Valve Relocation Project [B-050-020] It is the recommendation of the Public Works Director that the City Council accept the subject construction contract, performed by Whitehawk Construction, as satisfactorily complete and authorize the City Clerk to file a Notice of Completion with the Shasta County Recorder. Final cost was $187,456.82. I Award of Bid - Schedule No. 4383 (Job No. 2370), Keswick Dam Transmission Main Repair Project [B-050-020] It is the recommendation of the Public Works Director that the City Council award Bid Schedule No. 4383 to Purcell Painting and Coating, for repair and repainting of the 30-inch water main running from the Buckeye Water Treatment Plant, in the amount of $187,300; that an additional $40,000 be approved for administration and inspection fees; and that $35,000 be approved to provide construction contingency funding, for a total of$262,300. Second Amendment to Consulting and Professional Services Contract - Stillwater Wastewater Treatment Plant Expansion Project [W-01O-560] It is the recommendation of the Public Works Director that City Council authorize the Mayor to execute the Second Amendment to the Consulting and Professional Services Contract (C- 5168) with Water Works Engineers, LLC, for engineering services associated with changes to the project scope of the Stillwater Wastewater Treatment Plant Expansion Project (SWWTP), adding plant security improvements, control panel replacement design, and additional geotechnical engineering investigation to the contract, resulting in a net increase of $101,600 and bringing the total cost of consultant professional engineering services to $2,301,600 for the SWWTP Expansion Project Phases lA-IC. I Extension of Consulting and Professional Services Agreement - William Avery & Associates [P-I00-050] It is the recommendation of the Assistant City Manager that the City Council approve extending the Consulting and Professional Services Agreement(C-5326) with William A very & Associates, effective April 5, 2011, and amending the terms of his compensation to a monthly flat rate. 04/05/2011 54 A MOTION WAS MADE by Council Member Jones, seconded by Council Member Bosetti, that the foregoing items on the Consent Calendar be approved and adopted as recommended above. The Vote: AYES: Council Members - Bosetti, Dickerson, Jones, Sullivan and McArthur. NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - None Resolution No. 2011-38 is on file in the Office ofthe City Clerk. LETTER - Mary Machado, Shasta VOICES, regarding annual Building and Development Impact Fee Increases [L-O I 0-045] Mary Machado, Executive Director of Shasta VOICES, submitted a letter dated March 9, 2011, requesting to be put on the agenda. Ms. Machado, and Jerry Wagar, President of Ochoa and Shehan Builders, Inc., reviewed the PowerPoint presentation attached to the aforementioned letter regarding the automatic/annual increase to building and development impact fees. They submitted data relative to the current economy, development impact fee history, actual growth vs. projections, average building costs and median home sales prices for the period 2002 through 2011, and home sales and market conditions for the period 2005 through 2010. Ms. Machado and Mr. Wagar cited an imbalance and proposed three options for Council's consideration. I Carl Arness and Kent Dagg expressed OpInIOnS on this topic, generally supporting incremental fee increases, and questioning appropriate responses to unexpected economic conditions. Staff and speakers responded to questions from Council Members. City Manager Starman counseled that a comprehensive impact fee study would be necessary to accurately assess the appropriateness of the current fee schedule, and that it would be expensive to complete. City Attorney Duvernay advised that classifications are based on the impact to the City's infrastructure and must be proportional, as well as conform to state laws i.e. Prop 218. He offered examples of other cities that allocate some development costs to utility divisions. I After an additional question and answer period, City Manager Starman observed a Council consensus for more information and responded that a staff report could be submitted at the next Regular City Council meeting. APPOINTMENT - Community Services Advisory Commission [B-080-128] A MOTION WAS MADE by Council Member Dickerson, seconded by Council Member Jones, approving the Mayor's recommendation to appoint Robert Brennan to fill a vacancy resulting from a resignation and serve on the Community Services Advisory Commission for a term ending January 1, 2014. The Vote: Unanimous Ayes STILLWATER BUSINESS PARK - Development and issuance of a Request for Qualifications for a real estate listing agreement for Stillwater Business Park [E-050-500] - Economic Development Liaison Keener summarized the Report to City Council ( staff report) dated March 23, 2011, incorporated herein by reference, relating to marketing of the Stillwater Business Park (SBP). Mr. Keener relayed that five national commercial real estate firms had be interviewed and analyzed in 2008, from which Cushman & Wakefield (C&W) had been selected to solicit potential tenants for SBP. He outlined the extensive efforts that C&W Senior Broker John Troughton has provided over the past three years. Since the . existing agreement (C-4949) with C&W will expire on May 31, 2011, Mr. Keener recommended that the Council consider establishing a review panel, consisting of Council Member Sullivan (the Council Liaison to SBP), one of the City's representatives to the Shasta County Economic Development Corporation Board, Rob Middleton (owner of House of Realty and member of the initial review committee), and himself, to develop and issue a Request for Qualifications for national commercial real estate firms to represent the City and Stillwater Business Park. The staff report also recommended an extension of the existing contract on a month-to-month basis, for a period up to 90 days, to avoid disruption of any projects already in place. I 04/05/2011 55 Steve Graham and Ken Miller expressed opinions relative to Mr. Troughton's prolific reputation and abilities and Randy Byrd voiced concerns about making any broker changes in the midst of the peak selling season. I John Troughton pointed out highlights of monthly Stillwater Business Park (SBP) Marketing Reports beginning in April 2010, incorporated herein by reference, and expounded on significant activity that has occurred while SBP has been listed with Cushman & Wakefield. Mr. Troughton recalled the recent agreement with Southern Aluminum Finishing and indicated that four/five other companies have been engaged in active discussions regarding various interests in locating to SBP. He emphasized the continuous marketing actions performed, i.e., meetings/discussions with private equity companylbusiness owners, advertising in a variety of publications, attendance/presence at industry/trade shows, and proactive pursuit oflarge out -of-town job-producing entities such as Lawrence Berkeley Lab, as he has tirelessly attempted "to put the City in a position to choose rather than take who shows up" to populate SBP. Mr. Troughton affirmed his extensive background, experience, and network and reiterated the folly of changing brokers during the peak of the season. Council Member Dickerson acknowledged the exceptional amount of time and effort that Mr. Troughton had spent laying the groundwork world-wide for SBP, in the face of the national recession, and opined that he should be allowed to finish the job and that starting over was not a good business practice. A MOTION WAS MADE by Council Member Dickerson, to extend the existing contract with Cushman & Wakefield for 12 additional months, through May 31,2012. Motion failed for lack of a second. I A MOTION WAS MADE by Council Member Sullivan, seconded by Council Member McArthur, approving a six-month extension of the existing listing agreement with Cushman & Wakefield (C-4949) to represent the City and Stillwater Business Park in soliciting potential tenants, through November 30, 2011. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Bosetti, Dickerson, Sullivan, and McArthur Council Members - Jones Council Members - None Council Members - None PRIV A TIZA TION - Approval to proceed with development of public/private partnership opportunities [A-050-060] Assistant City Manager Tippin summarized the Report to City Council (staff report) dated March 24, 2011, incorporated herein by reference, relating to opportunities for the City to enter into public/private partnerships for City operations. Mr. Tippin recalled that Council Member Bosetti had previously introduced the business model of the City of Centennial, Colorado, and staff had been directed to explore and identify various city services with potential for outsourcing, that could result in savings to the General Fund. He explained the method staff used to select four areas for Council's consideration, as detailed in the staff report, and estimated that costs to develop the requisite Request-for-Proposals (RFP) would not exceed $150,000. The staff report recommended that the Council direct staffto proceed to analyze and develop RFPs relative to: . Redding Electric Utility (REU), Customer Service Call and Walk-In Centers Public W orksW ater Treatment Plant Operations Public Works Wastewater Treatment Plant Operations Public Works Traffic Signal Maintenance I . . . Ann Mooney, Service Employees International Union (SEIU) Field Representative, noted that estimated costs would undermine any amount of savings to the General Fund and urged the Council to retain public service jobs in the local community. Ms. Mooney expressed opposition to eliminating line workers and cited the inefficiency of a stUdy. Vicki Thomasy, Kathy Kidd, Annie Hunt, Brandon Rogers, Kim Oilar, Robert Belgeri, Misty Rhoads, Marcia Ames, and Joseph Bowers opposed outsourcing REU Customer Services, voiced concerns about reduced service levels, impersonal customer care, loss oflocalliving- 04/05/2011 56 wage jobs, questionable operating efficiencies and/or savings to the General Fund, and negative trickle-down impacts on community businesses and the local housing market. Responding to Council Member Jones, Assistant City Manager Tippin reiterated the logical approach staff applied, in concert with Council's direction at the Priority Setting Workshop on March 3, 2011, to determine which operational areas of the City were favorable for outsourcing and emphasized long-term efficiencies to reduce overall costs for health insurance and retirement benefits. Mr. Tippin relayed staffs concerns relative to confidentiality and security of Information Technology services and continuity and availability of dynamic fleet support services. He also explained that, due to localized interests, in-house Development Services were preferable to state regulated third party management. I Council Member Bosetti reviewed economic conditions motivating Council action and supported. analysis on outsourcing Information Technology and Development Services departments. Council Members Jones stated that outsourcing comes from Council's inability to attain union concessions and reluctantly supported sending jobs out of Redding, citing a shortfall in funding. Council Members Dickerson and Sullivan did not support outsourcing due to negative impacts on the community, i.e., increasing local unemployment, demoralization, etc., and recalled that neither the Community Services Advisory Commission nor an ad-hoc citizen's committee could recommend any areas to privatize after studying the issue in depth. A MOTION WAS MADE by Council Member Bosetti, seconded by Council Member McArthur, directing staff to proceed on identifying opportunities for the City to enter into public/private partnerships for Redding Electric Utility-Customer Service Call and Walk-In Centers, Public Works-Water and Wastewater Treatment Plant Operations and Traffic Signal Maintenance, as detailed in the staff report and add Support Services-Information Technologies, and Development Services-Building and Planning Divisions. I After additional discussion regarding the costs of analysis, a request by Council Member Jones to include union concessions in the motion, and Mayor McArthur's expression of discomfort about outsourcing the utility call centers, AN AMENDED MOTION WAS MADE by Council Member Bosetti, seconded by Council Member McArthur, directing staff to proceed on identifying opportunities for the City to enter into public/private partnerships for Public Works-Water and Wastewater Treatment Plant Operations, Support Services-Information Technologies, and Development Services-Building and Planning Divisions. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Bosetti, Jones, and McArthur Council Members - Dickerson and Sullivan Council Members - None Council Members - None AGREEMENT - Exchange Club of Redding for Air Show 2011 [A-070-080/A-090-100] Support Services Director Kersten summarized the Report to City Council (staff report) dated March 24, 2011, incorporated herein by reference, relating to a license agreement with the Exchange Club of Redding for the 2011 Air Show at Redding Municipal Airport. Mr. Kersten recalled that past budgets for the air show were in the $36,000 range and relayed that because the 2011 show would not be hosting the Blue Angels, costs for city-sponsored police, fire, public works, and airport staff supporting the event would be $30,000. He cited the popularity of the event within the community and recommended that the Council approve the item as described in the staff report. I Council Member Jones stated full support of the event and suggested using private airport security personnel instead of police officers, to reduce overtime costs. Chief Hansen established the necessity of trained personnel that are prepared to respond to a dramatic emergency, due to the nature of the event. He further defined the practice of shift 04/05/2011 57 changes, so that event traffic control, along with other city-wide police coverage, is performed by appropriately qualified personnel. He recommend strong police support for the event, to ensure the safety and security of families and the visiting public. Mike Baker, John Watt, Todd Contengim, Bill Wagner, and Dave McGeorge expounded on the positive impacts the event has on the community and supported containing costs and approval of the agreement. I A MOTION WAS MADE by Council Member Sullivan, seconded by Council Member Bosetti, approving the Exchange Club of Redding' s request to hold the Air Show 2011 at the Redding Municipal Airport on September 24 and 25, and authorized the Mayor to execute the License Agreement for same. The Vote: Unanimous Ayes I AWARD OF BID - Bid Schedule No. 4373 (Job No. 2358), Shasta View Drive/Old Alturas Road Roundabout; and RESOLUTION - Appropriating Grant Funds for same [B-050-020/S-070-1 00- 700] Public Works Director Crane summarized the Report to City Council (staff report) dated March 25,2011, incorporated herein by reference, relating to the Shasta View/Old Alturas Road Roundabout project. Mr. Crane reviewed the project's history, beginning in July 2008 through the bid opening in March 2011, noting that the low bid was nearly $300,000 more than the Engineer's Estimate. Mr. Crane relayed that a staffre-evaluation and discussions with five contractors, Omni-Means, the McConnell Foundation and counterparts at Caltrans, the City of Anderson and Shasta County Public Works yielded two primary reasons, which were: complexity of traffic management and material costs that are based on oil prices. He detailed an alternative traffic signal project scope and costs and reiterated the advantages of roundabout intersections. Mr. Crane stated that Sierra National Construction had been in business for 32 years and had committed to hiring local personnel to help manage and construct the project. He advised that the McConnell Foundation had agreed to the project cost increase and recommended that the Council move forward with the roundabout, award the bid to Sierra National, and approve the amendment to the Shasta View Drive/Old Alturas Road Roundabout Project Reimbursement Agreement. Gary Cadd, Bill Gilbert, Charles Alexander, and Gerald Hayler opposed the roundabout. Russ Wenham and Mike Mitchell supported the roundabout. Rich . Bates asked for repairs/improvements to facilitate right turns on the Chum Creek Road/Rancho RoadNictor Avenue intersection. Council Member Jones stated he would not support the rounqabout project due to escalating costs. I A MOTION WAS MADE by Council Member Sullivan, seconded by Council Member Bosetti, awarding Bid Schedule No. 4373 to Sierra National Construction for the amount of $1,349,683; approving an additional $220,000 for construction contract administration and inspection fees; approving an additional $130,000 for construction contingency funding; authorizing the Mayor to execute an amendment to the Shasta View Drive/Old Alturas Road Roundabout Project Reimbursement Agreement with the McConnell Foundation; and adopting Resolution No. 2011-39, a resolution of the City Council of the City fo Redding approving and adopting the 35th amendment to City Budget Resolution No. 2009-61 appropriating Citywide Transportation Development Impact Fee (TIP) funding for the Shasta -View Drive/Old Alturas Road Roundabout project for fiscal year 2010-11. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Bosetti, Dickerson, Sullivan, and McArthur Council Members - Jones Council Members - None Council Members - None COUNCIL TRAVEL REPORTS City Council Member attendance at conferences/meetings reimbursed at City expense {Requirement of Assembly Bill 1234 } [A-050-060] , Mayor McArthur reported attendance at the Legislative Appreciation Dinner and Status 04/05/2011 58 Conference in Sacramento, CA, on March 29, 2011, for herself and Council Members Bosetti, Jones, and Sullivan. CLOSED SESSION [P-I00-050] Gary Cadd opposed Redding Peace Officer Association contract offsets and pay increases for city employees. At the hour of 10:59 p.m., Mayor McArthur announced that Council would adjourn to Closed Session. At the hour of 11:3 7 p~m., Mayor McArthur reconvened the Regular Meeting to Open Session and reported that in reference to: I CONFERENCE WITH LABOR NEGOTIATOR Designated Agency Representative: Assistant City Manager Tippin Employee Organizations: Redding Peace Officers Association and Local Union 1245 of International Brotherhood of Electrical Workers AFL-CIO - Electric Employees [P-l 00-050-120/^P-l 00-050-070] No reportable action was taken. CONFERENCE WITH LABOR NEGOTIATOR Designated Agency Representative: Assistant City Manager Tippin Employee Organizations: All Represented and Unrepresented Employees [P-I00-050] No reportable action was taken. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Triangle Builders of Nevada, Inc., a Nevada Corporation, dba Deckade Advanced Decking Systems v. City of Redding, Shasta County Superior Court Case No. 161262 [L-I00] No reportable action was taken. I CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Citizens for Fair REU Rates, Michael Schmitz, Shirlyn Pappas, Fee Fighter LLC v; The City of Redding and the City Council of the City of Redding; Case No. 171377 [L-I00] No reportable action was taken. ADJOURNMENT There being no further business, Mayor McArthur declared the meeting adjourned at the hour of 11 :38 p.m. APPROVED: ATTEST: I rt6/mJ ~ City Clerk 04/05/2011