HomeMy WebLinkAboutMinutes - City Council - 2004-11-02
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City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress Avenue,
Redding, California
November 2,2004 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Council Member Cibula.
The Invocation was offered by Police Chaplain Betty Ha~son-Smith.
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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, Assistant City
Manager Starman, Deputy City Manager Bachman, Interim City Attorney Frediani, Electric
Utility Director Feider, Development Services Director Hamilton, City Clerk Strohmayer,
Assistant City Clerk Sherman, and Executive Secretary Stribley.
Approval of Minutes - Regular and Special Meetings of October 19,2004, and the Special
Meeting of October 25, 2004.
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Approval of Payroll and Accounts Payable Registers
(A-050-100-500)
It is recommended that Accounts Payable Register No.8, check numbers 823520 through
823913 inclusive, in the amount of $7,092,876.90, for the period of October 15, 2004,
through October 29,2004; and Payroll Register No.9 electronic deposit transaction numbers
153510 through 154262 and check numbers 519607 through 519863 inclusive, in the amount
of $2,107,072.31, for the period of October 10, 2004, through October 23, 2004, be
approved.
TOTAL: $9,199,949.21
Treasurer's Report - September 2004
(A-050-100-600)
Total Treasurer's Accountability
$128,434,663.27
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities
$188,878,910.19
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 September 2004 be accepted.
Ordinance - Amending Redding Municipal Code Chapter 6.14 re Card Rooms
(L-070-030)
It is the recommendation of the Assistant City Attorney that Ordinance No. 2338 be adopted,
an ordinance of the City Council of the City of Redding amending Redding Municipal Code
Sections 6.14.010-(Purpose and Intent), 6.14.020-(Definitions), 6.14.027-(Location of
Gambling Establishment), 6.14.080- (Suspension and Revocation of License), 6.14.100-
(Registration of Employees), and 6.14.11 O-(Identification Cards) regarding card rooms.
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Status Report - Sports Complex
(P-050-600-200)
It is the recommendation of the Assistant City Manager that the City Council accept the
report for the Sports Complex for the period of October 5,2004 through November 1,2004.
Option to Acquire Property Agreement - 2210 Abernathy Lane
(C-070-010 & S-020-650)
It is the recommendation of the Assistant City Manager that the City Council authorize
acquisition of7.5 acres of real property located at 2210 Abernathy Lane from Wanda and
Randy Conrad pursuant to the Option to Acquire Property Agreement approved at the City
Council meeting of September 7, 2004, in the amount of $343,750 and the property will be
used for future expansion of the Solid Waste Transfer Station. The sale is subject to a
finding of General Plan conformance by the County of Shasta.
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Acquisition and Lease Agreements - 7243 Loftus Road; and
Resolution - Appropriating funds for same
(C-070-010/B-130-070/ A-090-100)
It is the recommendation of the Support Services Director that the City Council approve the
Acquisition Agreement for 4.26 acres of real property located south of the Redding
Municipal Airport at 7243 Loftus Road owned by Sandra Cain in the amount of $357,000
to provide further runaway approach protection and future expansion for the Airport. It is
also recommended that th~ Support Services Director be authorized to execute a Lease
Agr~ement with Sandra Cain upon close of escrow for said property on a month-to-month
basis for a one-year term in the amount of $550 per month.
It is further recommended that a loan from th~ General Fund be made to the Airport Fund for
said purchase in the amount of$361,500 to be repaid upon receipt of a grant from Federal
Aviation A4ministration (FAA).
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It is also recommended that Resolution No. 2004-172 be adopted, a resolution of the City
Council ofthe City of Redding approving and adopting the 82nd amendment to City Budget
Resolution No. 2003-103 appropriating $361,500 for land acquisition near the Redding
Municipal Airport for fiscal year 2004-05.
Resolution - Appropriating funds for preparation of Oasis Road Specific Plan Environmental
Impact Report
(B-130-070 & G-030-11O)
It is the recommendation of the Development Services Director that Resolution No. 2004-
173 be adopted, a resolution of the City Council of the City of Redding approving and
adopting the 71 sl ~endm~ptto City Budget Resolution No; 2003-103 appropriating $33,500
for prep~ation ofth~ Oasis Ro~d Specific Plan by RBF Consulting, Inc. for fiscal year 2004-
05.
Council Member Cibula advised he will abstain from discussion and voting on this matter
due to family holdings in the area. The Vote:
AYES: Council Members - Ki~t, Mathena, Stegall, and Pohlmeyer I
NOES: Council Me~bers - None
ABSTAIN: Council Members - Cibula
ABSENT: Council Members - None
Resolution - Authorizing a grant application to the State D~partment of Parks & Recreation
for the Sports Compl~x soccer fields
(G-100-170/P-050-600-200/P-050-690)
It is the recommendation of the Community Services Director that Resolution No. 2004-174
be adopted, a resolution ofthe City Council of the City of Redding approving the application
to the State Department of Parks and Recreation for California Clean Water, Clean Air, Safe
Neighborhood Parks, and Coastal Protection Act of2002 (Proposition 40) for grant funds in
the amount of $1 million through the Youth Soccer and Recreation Development Grant
Program for construction of soccer fields at the Sports Complex. .
Notice of Completion - ~id Schedule No. 3687, Lake Redding and Turtle Bay Boating
Rehabilitation Project '
(B-050-020 & P-050-650)
It is the recommendC).tion of the Development Services Director that Bid Schedule No. 3687
(Job No. 2177), Lake Redding and Turtle Bay Boating Rehabilitation Project awarded to
BCM Construction Company be accepted as satisfactorily completed and that the City Clerk
be authoriz~d to file a Notice of Completion with the Shasta County Recorder. The final
price is $1,311,178.30.
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Notice of Completion - Bid Schedule No. 3681, Highway 273 at Canyon Creek Water Main
Intertie Project
(B-050-020 & W -030-725)
It is the recommend~tion ofthe Development Services Director that Bid Schedule No. 3681
(Job No. 2190), Highway 273 at Canyon Creek Water Main Intertie Project awarqed to Solid
Rock Constructi.on be acc.epted as satisfactorily completed and that the City Clerk be
authorize,d to file a Notice of Completion with the Shasta COlmty Recorder. The final price
is $148,282.
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Notice of Completion - Bid Schedule No. 3741, Rosemary Avenue and Grove Street Water
Main Replacement
(B-050-020 & W-030-725)
It is the recommendation of the Development Services Director that Bid Schedule No. 3741
(Job No. 2215), Rosemary Avenue and Grove Street water Main Replacement awarded to
Bobby Martin Construction, be accepted as satisfactorily completed and that the City Clerk
be authorized to file a Notice of Completion with the Shasta County Recorder. The final
price is $154,428.59.
Subdivision Agreement - Chum Creek Park Subdivision Phase 2
(S-100-091)
It is the recommendation of the Development Services Director that the Mayor be authorized
to execute a Subdivision Agreement for the Chum Creek Park Subdivision Phase 2 (S-38-
90), located east of Chum Creek Road and Constitution Way, by Blossom Park V and accept
securities for same.
Notice of Completion - Bid Schedule No. 3761, removal of sludge from Pond Nos. 5, 8, and
9 at Clear Creek Wastewater Treatment Plant
(B-050-020 & W-OI0-450)
It is the recommendation ofthe Development Services Director that Bid Schedule No. 3761
(Job No. 5331-63), removal of sludge from Pond Nos. 5, 8, and 9 at Clear Creek Wastewater
Treatment Plant awarded to Leckey Land Clearing be accepted as satisfactorily completed
and that the City Clerk be authorized to file a Notice of Completion with the Shasta County
Recorder. The final price is $78,810.76.
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 with
the exception of the item approved by separate vote as indicated above.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Cibula, Kight, Mathena, Stegall, and Pohlmeyer
Council Members - None
Council Members - None
Council Members - None:
Ordinance No. 2338 and Resolution Nos. 2004-172, 2004-173, and 2004-174 are on file in
the Office of the City Clerk.
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UPDATE ON MAJOR PROJECTS - Parkview Neighborhood Revitalization
(A-050-080)
Assistant City Manager Starman recalled that through a lengthy planning process, a site for
a new subdivision has been developed in the Parkview Neighborhood that will replace a very
blighted area and, ultimately, create 80 new homes. The City partnered with New Urban
Builders for this project and ground breaking took place on September 22,2004.
Mr. Starman presented slides of the Ribbon Cutting ceremony for the new Parkview Trail
Project located in the Parkview Neighborhood adding that the trail will eventually join with
the Sacramento River Trail. He related that the City has purchased several parcels along
Parkview Avenue, one of which will serve as the site for a proposed multi-family/office
combination project slated for construction near City Hall. The design for this project was
developed with input from the residents of the neighborhood.
Council Member Kight asked that grassy areas be included in the project and hoped that
Council would have an opportunity to provide additional input on the design elements of the
project. Mr. Starman responded that the design is very preliminary and Council have an
opportunity to provide input during consideration and approval ofthe project. He added that
Redding Electric Utility (REU) is undergrounding utilities along Parkview Avenue which
will include installation of decorative street lights. REU's portion of the undergrounding
should be complete in early 2005 but Pacific Gas and Electric's (PG&E) portion of the
project will not be completed until the end of2005.
Mr. Starman noted that construction on the new Library will begin soon and provide another
. amenity the Parkyiew Neighborhood. In addition, he said a traffic circulation study has been
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completed and recommendations will be forthcoming to City Council for consideration. He
added that Parkview residents have expressed satisfaction with the overall efforts.
No action was req~ired on this informational item.
MONTHLY FINANCIAL REPORT - Electric Utility
(B-130-070)
Electric Utility Director Feider repoI1:ed that retail power sales revenue is 7.0%, or
$1,445,496 above projections for Re4ding Elec~ric Utility (REU) and wholesale power sales
through Septemb~r were $3,497,8QO, or 54.4% ~bove projections. Operating revenue after
energy costs is $182,342 or 1.7% above expectations an4 the total cost of electricity through I
September 2004 was $5,047,010 or 29.4% aQove projections. He stated that REU's net
operating results through September is $702,488 or $770,698 above plan for the period.
Mr. Feider related that on October 19, 2004, the California Public Utilities Commission
(PUC) re~t(as~d a proposed decision reg~rding whetper customers annexed into a municipal
utility service will ~e required to pay "exit fees" (stemming from the 2QOO-2001 energy
crisis). This fee aff~cts three small-area (pocket) annexations (Lake Boulevard,
Tarmac/Abernathy, and East Cypress) that were approved by the Local Agency Formation
Commission (LAFCO) in the year 2000. Essentially, he said 74 customers in these areas
would pay the "exit fee" of approximately 2.7~ per Kilo W~tt hour (KWh) for eight to ten
years. However, Mr. Feider advised that ~lthough the PUC's decision would be favorable
to existing annexations, it wO\lld not apply tq new annexation customers. It is hoped that the
decision will be modifie.d bec~lUse it will make new annexation customers pay an "exit fee"
for service that was never connec.ted. He stated that the progress of this decision will be
monitored and updates provided to the City Council.
Mr. Feider recommended that the City Council accept the Monthly Financial Report for
Septemper 2004.
MOTION: Made by Council Member Kight, seconded by Council Member Mathena,
accepting the Monthly Financial Report for the EI~ctric 1]tility for September 2004.
The Vote: Unanimous Ayes
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RESOLUTION - Approving Transmission Capacity Acquisition Agreement and the
Supplemental Energy Sale and Scheduling Agreement with the City of Shasta Lake and
related actions
(C-070-01O & E-120-025)
Electric Utility Director Feider explaiI?-ed that Redding Electric Utility (REU) owns a little
over 100 M~ga W,atts (MW) of thy California Oregon Transmission Project (~OTP) which
is a power transmission li~e, conduit, and/or pipeline providing the capability of bringing
additional power to the City. He related that the City of Shasta Lake has express,ed interest
in selling their portion of the COTP (':lpproxim~tely 25 Mega Watt (MW) transmission
capability). After negotiations with the City of Shasta Lake, he advised that an at-cost
agreement was prepared th~t would allow REU to purchase Shasta Lake's portion of the
COTP for approximately $7.2 million, effective May 1, 2005. He stated that the purchase
will be m':l4~ utilizing REU reserve funds initia,lly, with the int~nt to possibly reimburse the
purchase price with m9re comprehensive financing at a later date.
Mr. Feider advised that during negotiations with the City of Shasta Lake, a $upplemental
Energy Purchase <;lnd Scheduling Agreement was also discussed that would allow REU to
provide supplemental power (up to 15 MW) t,o the City of Shasta Lake to meet its retail I
power needs (excluding Knauf) no longer provided by the Western Area Power
Administration (Western) as of January 1, 2005. He rell;lted that this agreement would be for
a three-year period at a fixed rate of $51.50 per Mega Watt hour (MWh). Th~ 15 MW
represents approximately 4% of REU's resources but 50% of the City of Shasta Lake's
needs.
Mr. F~ider expl,!-ined that the Supplemental Energy Purchase and Scheduling Agreement
would also allow REU to sche,Q.ll;le servic~ to the City of Shasta Lake including energy
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deliveries to Kn<;llJf.
Mr. Feider recalled that in 1996, the citi~s of Shasta Lake and Redding entered into an
enabling agI:eemeq.t that provides a standard contract stipulation for sale and purchase
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transactions. Pursuant to the enabling agreement, the City of Shasta Lake is requesting that
REU enter into a two-year fixed purchase/sale agreement whereby REU will purchase from
the City of Shasta Lake 13 MW of capacity located at the California-Oregon border (COB)
and sell to the City of Shasta Lake REU' s power at the Redding/Shasta Lake interconnection
with Western. The sale price is $51.50 per MWh for a two-year period which includes a
charge to the City of Shasta Lake of $14.53 per MWh to cover the cost of transmission,
firming and losses to deliver the 13 MW to Shasta Lake City. Additionally, Shasta Lake City
has requested that REU also sell them an additional 2 MW of power at the rate of$51.50 per
MWh delivered.
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Mr. Feider recommended that the City Council adopt a resolution authorizing the City
Manager and REU to execute a Transmission Capacity Acquisition Agreement with the City
of Shasta Lake in the amount of$7,189,681 to purchase approximately 25 MW interest in
COTP, declare the City's intention to repay certain e~penditures (Reimbursement
Expenditures) in connection with acquisition of the COTP prior to issuance of indebtedness
for the purpose of financing costs associated with the acquisition on a long-term basis,
authorize execution of a Supplemental Energy and Scheduling Agreement with the City of
Shasta Lake to provide supplemental power up to 15 MW at a fixed rate for a three-year
period, and authorize execution of a two-year purchase/sale agreement with the City of
Shasta Lake to provide up to 15 MW of power under the City of Shasta Lake/City of Redding
enabling agreement.
In response to Council Member Cibula, Mr. Feider explained that the fixed price for sale of
power to the City of Shasta Lake is based on REU's resource portfolio which provides REU
with energy supplies and prices for three years. Mr. Feider stated that although there is no
"risk-free" arrangement in the power industry, the transmission line asset will be
advantageous to REU' s resource portfolio with the largest risk being regulatory. He advised
that renewable energy resources continue to be of foremost importance and the purchase of
line transmission capabilities will allow REU to access those resources and minimize
potential future increases.
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Council Member Mathena asked for clarification on the use ofREU's financial reserves for
purchase of the transmission capabilities. Mr. F eider I explained that REU has set its
minimum reserves at $15 to $20 million, but currently, REU's reserves are at approximately
$35 million. Using $8 million to purchase this asset, will reduce cash reserves to $27 million
leaving a substantial cushion for unforeseen events.
Council Member Kight questioned why such a healthy cash reserve had not produced a rate
decrease for the rate payers. Mr. F eider opined that the reserve works to the benefit of rate
payers acting as a savings account earning interest and as a shock absorber to shield them
against unforeseen increases and industry crises.
John Harris, Redding resident, advised that the staff reports from the City of Shasta Lake
stated. that there was a bidding process for the COTP lines and that the Redding Electric
Utility was the highest bidder. He expressed concern that a fixed "cost-base" sale of
electricity for three years was not risk free and Council should consider giving REU rate
payers a three-year guarantee on the cost of their electric bills instead of makIng additional
purchases if financial reserves were so high. He opined that the complexity of the
agreements clouded the actual point of the transactions which he asserted was to supply
Knauf with a decreased rate for power. He urged the City Council to vote no on the
proposal.
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In response to City Manager Warren, Mr. Feider stated that the transmission capacity
purchase is part of the portfolio assets, however, he estimated that the benefit would exceed
the approximate annual cost of $600,000. He added that REU is looking for long-term
benefits for its rate payers and while the agreements will provide that, they do provide short-
term benefits to the rate payers of the City of Shasta Lake. Regarding Knauf, Mr. Feider
observed that a potential reduction in Knaufs demand charge does not mean that Knaufs
total bill for energy is going down, as the demand charge is only one component of the bill.
He added that specific arrangements between the City of Shasta Lake and its rate payers is
not within the purview ofREU.
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MOTION: Made by Council Member Kight, seconded by Council Member Stegall,
adopting Resolution No. 2004-175, a resolution ofthe City Council of the City of Redding
approving and authorizing the City M~ager to execute the Transmission Capacity
Acquisition Agreement with the City of Shasta Lake for ownership of the City of Shasta
Lake's 1.5856% transmission capacity in the California Oregon Transmission Project
(Project) at an approximate cost of $7,189,681.00, declaring intention to reimburse the
reimbursement expenditures associated with the Project from proceeds obtained from a
subsequent issuance oflong-term debt obligations, authorizing the Electric Utility Director
to execute the Supplemental Energy Sale and Scheduling Agreement with the City of Shasta
Lake for a three-year term at a fixed-rate, and allthorizing the Electric Utility Director to
execute the two-year sale/purchase transactions with the City of Shasta Lake for up to 15 I
megawatts (mw) of power under the existing City of Shasta Lake/City of Redding enabling
agreement. 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. 2004-175 is on file in the Office of the City Clerk
Monthly Financial Report - General Fund
(B-130-070)
Deputy City Manager Bachman advised that total revenue at the end of September is $12.2
million or $1,045,333 (9.3%) ~bove staffs cash flow projection. Expenditures at month end,
excluding encumbrances, total $17,119,089 or $652,882 (3.9%) above staffs original
projection and encumbrances total $3,526,868.
Mr. Bachman pointed out that the projections for Sales Tax Revenue and Motor Vehicle In-
lieu fees as they appear in the Report to City Council dated October 19, 2004, do not reflect
actual revenues due to changes made by the state during its budget process. He stated that
last year 25% of sales tax revenue was taken from the City by the state to payoff state deficit I
reduction bonds. Mr. Bachman pointed out that the state did not take the revenue until
October 1 SI" so the September revenue total is inflated and will actually reflect in October
increased projections of approximately $300,000, not the $1 million total shown in
September. He noted that the state will eventually return these funds through property tax
revenues. He also pointed out that the Motor Vehicle In-lieu fees appear to be significantly
lower than staff s projections, but the state will also return some of this lost revenue in the
form of property tax payments after the first of2005.
He recommended that the City Council accept the General Fund Monthly Financial Report
for September 2004.
MOTION: Made by Council Member Kight, seconded by Council Member Stegall,
accepting the General Fund Monthly Financial Report for September 2004.
The Vote: Unanimous Ayes
PUBLIC COMMENT
(A-050-060)
Council Member Mathena advised he attended the ribbon cutting ceremonies this week for
the Schreder Planetarium and highly recommended the new program.
ADJOURNMENT
There being no further business, at the hour of 7:47 p.m., Mayor Pohlmeyer declared the
meeting adjourned.
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APPROVED
Mayor
ATTEST:
City Clerk
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City Council, Special Meeting
Council Chambers
777 Cypress Avenue
Redding, California
November 16, 2004 6:30 p.m.
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The meeting was called to order by Mayor Pohlmeyer with the following Council Members
present: Kight, Mathena, and Stegall. Council Member Cibula was absent.
Also present were City Manager Warren, Assistant City Manager Perry, Assistant City-
Manager Starman, and Interim City Attorney Frediani.
At the hour of 6:30 p.m., Mayor Pohlmeyer announced that the City Council would adjourn
to closed session to discuss the following: .
Closed session pursuant to California Government Code Section 54956.8
CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Property on Park Marina Drive identified as Assessor's Parcel Numbers:
102-110-001 through 102-110-002
102-110-014
102-120-015
102-150-010 through 102-150-013
102-220-001 through 102-150-008
102-220-010 through 102-220-013
102-220-015 through 102-220-020
102-230-053 through 102-230-073
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Agency Negotiator: City Manager Warren and Assistant City Manager Starman
Negotiating parties: City of Redding and George Kutras, Christopher Kutras, and Demetra
Kutras
Under negotiation: Terms and Price
(C-070-010)
At the hour of 6:52 p.m., Mayor Pohlmeyer reconvened the Special Meeting to open session
and advised there was no reportable action.
There being no further business, at the hour of 6:52 p.m., Mayor Pohlmeyer declared the
meeting adjourned.
APPROVED
I ATTEST: .
Li~dr
City Clerk
11/1612004