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HomeMy WebLinkAboutMinutes - City Council - 2004-02-03 19 City Council, Regular Meeting Civic Center Council Chambers 777 Cypress A venue, Redding, California February 3, 2004, 7:00 p.m. The Pledge of Allegiance to the Flag was led by Council Member Cibula. I The Invocation was offered by Police Chaplain Ray Foust. The meeting was called to order by Mayor Pohlmeyer with the following Council Members present: Cibula, Kight, Mathena, and Stegall. Also present were City Manager Warren, Assistant City Manager Perry, Deputy City Manager Starman, City Attorney Fuller, Administrative Services Director Bachman, Development Services Director Hamilton, Police ChiefMoty, Community Services Director Niemer, City Clerk Strohmayer, and Executive Secretary Stribley. Approval of Minutes - Regular and Special Meetings of Regular and Special Meetings of January 20,2004. I Approval of Payroll and Accounts Payable Registers (A-050-100-500) It is recommended that Accounts Payable Register No. 14, check numbers 814879 through 815285 inclusive, in the amount of $4,654,423.79, for the period of January 20, 2004, through January 30, 2004; Wire Transfers for the period of January 17, 2004, through January 30, 2004, in the amount of $44,729.06; and Payroll Register No. 15 electronic deposit transaction numbers 138353 through 139064 and check numbers 513194 through 513419 inclusive, in the amount of$l ,942,769.01, for the period of January 4, 2004, through January 17, 2004, be approved. TOTAL: $6,641,921.86 Treasurer's Report - December 2003 (A-050-100-600) Total Treasurer's Accountability $133,799,920.12 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities $192,969,108.14 ACR133 Report and Cash Reconciliation (F-205-095-650) It is the recommendation of the Administrative Services Director that the ACR133 Report and the Proof of Cash Reconciliation for December 2003 be accepted. I Agreement Amendment - Midtown Mall Benefit Corporation (A-170-015) It is the recommendation of the Deputy City Manager that the City Council approve the First Amendment to the Agreement with Midtown Mall Benefit Corporation (MMBC) eliminating the City's $2,000 annual collection/administration fee and that the City agree to pay one-half of the general liability insurance policy up to a maximum of $5,000 per year. Monthly Financial Report - Electric Utility (B-130-070), It is the recommendation of the Electric Utility Director that the City Council approve the Electric Utility's Monthly Financial Report for December 2003. Retail power sales revenue is 0.9%, or $316,214 above projections and wholesale power sales through December are $727,188, or 4.4% below projections. Operating revenue after energy costs is $86,027 or 0.4% above plan. The total cost of electricity through December 2003 is $2,494 above projections. The Utility's net operating results through December is $7,162,791 or $1,842,363 or 34.6% above plan for the period. 2/3/2004 20 Resolution - Amending City Council Policy No. 213 (A-050-060-555) It is the recommendation ofthe Community Services Director that Resolution No. 2004-14 be adopted, a resolution of the City Council of the City of Redding amending City Council Policy No. 213 entitled" Special Events - Conditions of Permit" to update and clarify the policy. . Grant Application - Northern California Computer Crimes Task Force (NC3TF) (G-100-170 & P-150-150) It is the recommendation of the Police Chief that the City Council authorize application to the Northern California Computer Crimes Task Force (NC3 TF) for funding through the State I Office of Criminal Justice Planning to allow a current Redding Police Department employee to serve a five or six month internship to receive training and experience in the high tech and identity theft units of the force. The grant would require a 20-25% in kind match available from currently budgeted expenses. Award of Bid - Bid Schedule No. 3708, purchase of three (3) transfer truck tractors; and Surplus Equipment (B-050-1 00/B-050-1 00-700/S-020-650) It is the recommendation of the Assistant City Manager that the City Council that Bid Schedule No. 3708, purchase of three (3) transfer truck tractors, be awarded to Oakland Truck Center in the amount of $271,730.75 to replace three transfer truck tractors (Fleet Numbers 01108, 01109, and 01110) and that the City Manager be authorized to execute necessary documents. It is further recommended that two of the three replaced transfer truck tractors be designated as surplus equipment and the proceeds be placed in the Utility's Rolling Stock Fund. MOTION: Made by Council Member Kight, seconded by Council Member Stegall, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Cibula, Mathena, Stegall, and Pohlmeyer Council Members - None Council Members - None Council Members - Kight I Resolution No. 2004-14 is on file in the Office of the City Clerk. UPDATE ON MAJOR PROJECTS - Shasta Anti-Gang Enforcement (S.A.G.E.) Unit (A-050-080 & P-150-150) Police Chief Moty related that in an effort to prevent gang infiltration to the Redding area, a new County-wide gang eradication agency has been launched called the Shasta Anti-Gang Enforcement Unit (S.A.G.E.). S.A.G.E. is a collaborative oflaw enforcement officers from the Redding Police Department (designated as lead agency), the Anderson Police Department, the Shasta County Sheriffs Department and other county, state and federal agencies. The mission of S.A.G.E. is to eliminate gang activity through community education. Chief Moty advised that the focus ofS.A.G.E. will be to train officers to educate schools, community groups, and government organizations in recognizing and eradicating gang behavior, graffiti, and other miscellaneous gang-related activity. Chief Moty added that the I ultimate goal of this endeavor is to preserve the pristine Redding community and inhibit gang activity. On behalf of the City Council, Mayor Pohlmeyer thanked the Redding Police Department for its foresight and asked for a future report on the progress ofS.A.G.E. JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY At the hour of7:18 p.m., Vice Mayor/Agency Chair Stegall convened the Special Meeting of the Redding Redevelopment Agency for a joint meeting with the City Council. 2/312004 21 I REQUEST FROM CAL TRANS - Additional funds for the North Market Street Rehabilitation project (S-050-100 & R-030-050-31 0) Deputy City Manager Starman recalled that in May 2003 the City Council and the Redding Redevelopment Agency (RRA) approved an agreement with Caltrans to provide funding for lighting improvements from Quartz Hill Road to Benton Drive and pedestrian upgrades for the Sulphur Creek Old 99 Trail as part of the North Market Street Rehabilitation Project. He related that Caltrans advised that bids received by its agency for the project are 15% above the engineer's estimate, and Caltrans has requested that RRA and the City contribute funds to make up the difference (an additional $76,000 for new street lights from RRA and additional $22,000 from the City for pedestrian trail upgrades). He added that without the additional funds, Caltrans will reject all bids and prepare an alternative bid for the project. Mr. Starman pointed out that staff is not confident that a new bid process will provide substantial savings or comparative costs, noting that J.F. Shea was the lowest responsive bidder and was considerably less than the next low bid. He added that if funding is provided and Caltrans awards the bid, it is hoped that modifications to the scope of work would reduce costs and any savings would be reimbursed to the City. Mr. Starman recommended that the City Council approve additional funds in the amount of $22,000 for the Caltrans pedestrian trail improvements as part of the North Market Street Rehabilitation Project and adopt a resolution appropriating $22,000 from the State Trails grant for the Sulphur Creek Old 99 Trail for fiscal year 2003-04. Carl Amess, Redding resident, urged that powder coating for street lights be eliminated from the Project citing its expense, and he maintained that the amount saved is almost equal to the requested additional funding. Mayor Pohlmeyer urged that street lighting be provided up the hill along Market Street to Lake Boulevard in order to mitigate safety issues for pedestrians and bicyclists who frequent that route. I David Moore, Caltrans Project Manager, advised that lighting up the hill on Market Street to Lake Boulevard is not included in the project at this time, but Caltrans is contemplating installing conduit on the west side of the hill for future lighting projects. He stated that Caltrans applied for a Transportation Enhancement Act (TEA) grant for pedestrian upgrades and, if successful, it would provide pedestrian lighting up the hill and upgrades to the paved shoulder to include concrete, curb, gutter, and sidewalk. The results of the grant application, however, will not be known for several months. Council Member Kight urged that if the TEA grant is not approved, Caltrans return to the City with a request for additional funds for lighting up the hill on Market Street. MOTION: Made by Council Member Stegall, seconded by Council Member Kight, approving an additional $22,000 to Caltrans for pedestrian trail improvements as part ofthe North Market Street Rehabilitation Project and adopting Resolution No. 2004-15, a resolution of the City Council of the City of Redding approving and adopting the 36th amendment to City Budget Resolution No. 2003-103 appropriating $22,000 for the Sulphur Creek Old 99 Trail for fiscal year 2003-04. The Vote: AYES: Council Members - Cibula, Kight, Mathena, Stegall, and Pohlmeyer NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - None I Resolution No. 2004-15 is on file in the Office of the City Clerk. At the hour of7:36 p.m., Vice Mayor/Agency Chair Stegall adjourned the Special Meeting of the Redding Redevelopment Agency. REQUEST FROM LOWE'S CORPORA nON FOR A GENERAL PLAN AMENDMENT AT 1200 CYPRESS AVENUE (G-030-010) Development Services Director Hamilton explained that the Lowe's Corporation submitted an application to construct a 160,000 square-foot home improvement store at 1200 East Cypress Avenue (Safeway Center). The location is currently zoned "Residential 10 to 20 2/3/2004 22 units per acre" and a General Plan amendment is necessary to change the designation to "Regional Commercial" in order to allow that type of development. Mr. Hamilton stated that because the request to rezone that location will entail large amounts of City stafftime and expense to Lowe's, it has asked that the Planning Commission and the City Council provide a potential position on the issue. He related that the Planning Commission, after hearing an overview of the proposal, did not support moving forward with the rezone based on General Plan policy regarding "Regional Commercial" development and specific Housing Element requirements. The Planning Commission also determined that other sites in the City may be more suitable for a redesignation and rezone for this type of project noting that 1200 East Cypress Avenue is a preferred high-density housing area and Lowe's offered no compelling argument to recommend a change in designation. I Mr. Hamilton pointed out that there are several Community Development and Design Element policies of the General Plan that would uphold a denial of the request, but noted that there are Economic Development Element policies that would support Lowe's request. He advised that AB2292 (Dutra) requires that when housing inventory is removed from certain residential lands to a lower density or nonresidential use, specific findings must be made that a sufficient housing inventory still exists to provide for the City's regional fair share housing needs as establish~d by the state. He stated that staff determined that those findings can be made, but he cautioned that it is difficult to replace multiple family properties. However, he also pointed out that in the short-term, there are few large commercial areas available for a project of this size, and although the Oasis Road area would be a more suitable location, it will not be available for a number of years. City Manager Warren pointed out that the Economic Development Element of the General Plan directs that the City remain the retail sales hub of the area and the Lowe's project would assist with that requirement. He advised that Lowe's would generate approximately $170,000 annually in gross property tax increment to the Redevelopment Agency, of which $34,000 would be dedicated specifically to affordable housing each year. Lowe's would also generate approximately $350,000 in sales tax revenue, although a portion of that amount would represent sales that would have been made at other stores had Lowe's not located to Redding. He stated that property owners and residents in the area are supportive of a new Lowe's store at the location juxtaposed to an apartment development. He continued that Lowe's anticipates hiring approximately 200 employees who will receive competitive wages and benefits. I With regard to the loss of multiple -family inventory, Mr. Warren indicated that Lowe's and Safeway have offered to provide $1 million to assist in purchasing multiple-family zoned properties elsewhere or it could be applied to other housing issues such as low-income housing loans and/or assistance to first-time homeowners. Mr. Warren recommended that the Lowe's application for a rezone be returned to the Planning Commission for further consideration. In response to Council Member Cibula, Mr. Hamilton explained that if this rezone is approved, it could potentially affect decisions regarding other future rezoning applications. He pointed out, however, that because the state is removing local flexibility in this area through legislation, the point may be moot in the future. Council Member Mathena observed that the parcel is not specifically zoned for affordable housing, but any type of multi-family housing utilizing 10 to 20 units per acre - including upscale apartments. He pointed out that sev~ral sites could be purchased with the $1 million housing allocation rather than a similar II-acre parcel and added that the Oasis Road development will provide elements for housing. I Council Member Stegall and Mayor Pohlmeyer urged that the $1 million be earmarked for affordable housing. Rather than maintaining a larg;e inventory of multi-family properties with no proposed development, Mayor Pohlmeyer preferred utilizing the $1 million allocation to assist a developer( s) in providing multi-family housing at an alternate location. Council Member Cibula observed that the Oasis Road project would be more conducive to the Lowe's project and would provide a more centralized commercial area for larger stores. He expressed concern regarding the impact to housing and did not believe justification to rezone the property to commercial had been presented. 2/3/2004 23 Council Member Kight recalled that a project for multi-family housing in the same area had come before Council some years ago but was not developed because of financial considerations. He believed the location was appropriate for commercial development as well as housing, and agreed that although Oasis Road is the future commercial area, it appears it will not be available for years. Mayor Pohlmeyer clarified that no action will be taken by the City Council regarding the request for a General Plan amendment other than to determine whether or not to send the matter back with a favorable recommendation to the Planning Commission for customary processmg. I It was the consensus of the City Council to return the Lowe's application to the Planning Commission for review and processing. RESOLUTION Appropriating funds for the Vista Ridge Park; and PARTNERSHIP AGREEMENT - Home Depot and KaBOOM! (B-130-070 & P-050) Community Services Director Niemer advised that the City has agreed to partner with Home Depot and KaBOOM to construct the Vista Ridge Park. She related that Home Depot Stores approached KaBOOM, a national organization similar to Habitat for Humanity that builds community playgrounds, to partner in the construction of a park in the City. After discussions with the City regarding the best site for the project, the Vista Ridge Park site was selected. The project requires that all labor be volunteer other than areas requiring expertise, in which case the bid process would be utilized. Ms. Niemer stated that residents of Vista Ridge have thus far committed in-kind labor and other contributions to the project. Ms. Niemer recommended that the resolution be adopted appropriating $60,000 for the Vista Ridge Park equipment and supplies and that the Community Services Director be authorized to execute a partnership agreement with KaBOOM. She also thanked Home Depot for bringing this project forward. I Jerry Clark, Judy Jung, Dan Matthews, and Orpha Matthews urged support for funding and construction of the Vista Ridge Park project, and advised that residents have already volunteered their labor for construction and will continue to hold yard sales to provide a portion of funding. Sally Riley, representing Construction Industry Force Account Council (CIF AC), urged that staff be directed to send a letter to the Director of Industrial Relations, per procedure, to perform a survey regarding impacts to jobs in the community because this project will utilize volunteer labor. She added that CIF AC does not object to the project. City Attorney Fuller advised that the Director of Industrial Relations will be notified 45 days before work commences and local labor councils will be polled. He was confident that the labor councils would support a project of this nature and that approval to utilize volunteer labor would be forthcoming. I MOTION: Made by Council Member Cibula, seconded by Council Member Stegall, authorizing the Community Services Director to execute a partnership agreement with KaBOOM for construction of a park at Vista Ridge and adopting Resolution No. 2004-16 a resolution of the City Council of the City of Redding approving and adopting the 37th amendment to City Budget Resolution No. 2003-103 appropriating $60,000 for Vista Ridge Park for fiscal year 2003-04. The Vote: AYES: Council Members - Cibula, Kight, Mathena, Stegall, and Pohlmeyer NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - None Resolution No. 2004-16 is on file in the Office of the City Clerk TRAFFIC IMP ACT FEE PROGRAM (T -080-400) City Manager Warren provided highlights of the Report to City Council dated January 27, 2004, recalling that Traffic Impact Fees (TIF) were adjusted in the year 2000 with phased-in increases over a period of six years beginning in 2001. Since that time, the City has experienced faster-than-anticipated traffic growth, certain projects have become more urgent, 2/312004 24 and traffic congestion has worsened in some areas. He recalled that last year, the City Council directed staff to analyze the Traffic Impact Fee Program and provide recommendations regarding adjustments. Staff recently completed a computer model projecting traffic needs for the next 20 to 25 years including projects not listed on the 2000 Traffic Impact Fee Project list. The estimated total of all projects is $300 million, with $170 million attributed to growth. He advised that traffic improvement construction costs have increased significantly and pointed out that the longer a project is delayed, the less likely allocated funds will be adequate to complete that project. After meetings with representatives of the construction and business communities, Mr. Warren advised that a modified program was developed to provide funds for specific projects in the amount of $46,150,000 over the next ten years. To accumulate sufficient funding for these projects, it I is proposed that fee increases be phased in over a three year period for residential construction and five years for commercial construction. The proposed increases will provide the ability to build traffic projects more concurrently with growth rather than falling behind as is now the case. He suggested that future increases be tied to the Construction Cost Index (CCI) as a safeguard against inflation. Mr. Warren thanked the Shasta Builders' Exchange, the Greater Redding Area Chamber of Commerce, the Board of Realtors, and the Economic Development Corporation for their participation and support of the study. Mr. Warren recommended that the City Council conceptually approve modifications to the Traffic Impact Fee as previously stated with implementation to begin July 1,2004, and direct staff to prepare an implementing ordinance. Council Member Kight recalled that in the past, the City Council waived TIF fees for industrial users, but understood that SB975 negates the City's ability to waive certain fees to attract commercial and industrial users and ultimately more jobs. Administrative Services Director Bachman confirmed that understanding, but he explained that the City is working with local legislators to overturn SB975. Should that not occur, he said staff is working with the Economic Development Corporation to create alternatives for attracting commercial and industrial development to the area. In response to Council Member Mathena, Mr. Warren advised that the $300 million total is for road improvements only, not road maintenance. He pointed out that without adequate infrastructure, growth would diminish and the community would no longer attract new business or residents. I Council Member Mathena questioned how much of an increase to the Traffic Impact Fee (TIF) would be needed to generate $300 million and fund all listed projects, and how much money does TIF generate yearly. Mr. Bachman responded that if the TIF were increased to generate $300 million, the costs would be prohibitive for construction. He advised that over the last few years, TIF has generated $1.5 million annually but $4 million would have been needed to correspond with growth. Carl Arness expressed concern that the streets are not properly maintained. He suggested that an increase in the gas tax specifically allocated for street maintenance would be helpful. Jay Gibson, representing the Greater Redding Area Chamber of Commerce, supported the fees and asked that they be implemented in a fair and equitable manner. He also urged that implementation occur January 1, 2005, rather than July 1, 2004. Kent Dagg, Executive Director of the Shasta Builders' Exchange, expressed support for the new fees and thanked the City Council and staff for working with the industries. He stated that the previous three fee increases (water, wastewater, and storm drain) combined with the new TIF will make it difficult for the housing and commercial markets but believed it is necessary to provide sufficient infrastructure for the future. I Mayor Pohlmeyer stated that the implementation date of July 1 sl would seem to press developers already in the process of planning a development. Mr. Bachman explained that an additional six month delay for implementation (January 1, 2005) would require that the fees be increased an additional 5% in order to accumulate the necessary funding. 2/312004 25 Council Member Cibula understood that the Park fees would be discussed during a workshop and then presented, in a month or so, to the Council for consideration. He urged that the Traffic Impact Fee and the Park Plan fees be considered together at that time to give the public a more comprehensive view of the overall impact ofthe new fees. Council Members Kight, Mathena, and Stegall recommended that the growth-related Traffic Impact Fee increase be considered separate from Park fees. They also urged that the implementation date be July 1 sl because a delay will reduce the amount of available funding for projects. I MOTION: Made by Council Member Stegall, seconded by Council Member Kight, conceptually approving increases to the Traffic Impact Fee Program as previously set forth and directed staff to prepare an implementing ordinance. The Vote: A YES: Council Members - Kight, Mathena, Stegall, and Pohlmeyer NOES: Council Members - Cibula ABSTAIN: Council Members - None ABSENT: Council Members - None ADJOURNMENT There being no further business, at the hour of 9:06 p.m., Mayor Pohlmeyer declared the meeting adjourned. APPROVED I ATTEST: ~....~ City Clerk -" ~ '~'" . - ~f I 2/3/2004