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HomeMy WebLinkAboutMinutes - City Council - 2005-05-03 91 City Council, Regular Meeting Civic Center Council Chambers 777 Cypress Avenue, Redding, California May 3,2005 7:00 p.m. The Pledge of Allegiance to the Flag was led by Council Member Dickerson. I The Invocation was offered by Police Chaplain Penni Tyler. The meeting was called to order by Mayor Mathena with the following Council Members present: Dickerson, Murray, Pohlmeyer, and Stegall. Also present were City Manager Warren, Assistant City Manager Perry, Assistant City Manager Starman, City Attorney Duvernay, Deputy City Manager Bachman, Development Services Director Hamilton, Electric Utility Director Feider, City Engineer Tippin, City Clerk Strohmayer, and Executive Assistant Stribley. CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Minutes - Regular and Special Meetings of April 19, 2005 I Approval of Payroll and Accounts Payable Registers (A-050-100-500) It is recommended that Accounts Payable Register No. 20, check numbers 828797 through 829230 inclusive, in the amount of$l 0,423, 147.20, for the period of April 18, 2005, through April 29, 2005;and Payroll Register No. 22 electronic deposit transaction numbers 163529 through 164272 and check numbers 5223817through 523014 inclusive, in the amount of $2,156,508.26, for the period of April 9, 2005, through April 23, 2005, be approved. TOTAL: $12,579,655.56 . Treasurer's Report - March 2005 (A-050-100-600) Total Treasurer's Accountability $129,425,770.08 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities $198,361,998.90 ACR133 Report and Cash Reconciliation (F-205-095-650) It is the recommendation of the Deputy City Manager that the ACR 133 Report and the Proof of Cash Reconciliation for March 2005 be accepted. I Resolution - Adopting City Council Policy No. 1903-Relocation Assistance and Real Property Acquisition Procedures and amending Rules and Regulations for Implementation of the California Relocation Assistance Law and Property Acquisition Procedures (A-050-060-555 & C-070-010-700) It is the recommendation ofthe Management Assistant to the City Manager that Resolution No. 2005-52 be adopted, a resolution ofthe City Council of the City of Redding amending the City's Rules and Regulations for Implementation of the California Relocation Assistance Law and Property Acquisition Procedures incorporating same in and adopting City Council Policy No. 1903. Status Report - Sports Complex Soccer Park (P-050-600-200 & P-050-690) It is the recommendation of the Management Assistant to the City Manager that the City Council accept the report regarding the Sports Complex Soccer Park for March 2005. 5/3/2005 92 Resolution - Transferring funds for safety netting and fencing at Big League Dreams Sports Complex (B-130-070 & P-050-600-200) It is the recommendation of the Assistant City Manager that Resolution No. 2005-53 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 105th amendment to City Budget Resolution No. 2003-103 appropriating and transferring $65,000 from Capital Project Fund (Sports Complex Soccer Fields Erosion Control) to Park Development Funds for safety netting and fencing at Big League Dreams Sports Complex to be located behind the player benches in the Field House, and outside the left field fence (known as Des Moines Field) for fiscal year 2004-05. Resolution - Making required findings to use redevelopment tax increment funds for the Sundial Bridge restroom access project (R-030-145-350 & S-070-050-500) It is the recommendation of the Assistant City Manager that Resolution No. 2005-54 be adopted, a resolution of the City Council of the City of Redding making findings that: 1. The improvements are of benefit to the project area from which the funds are derived or to the immediate neighborhood in which the project is located; 2. No other reasonable means of financing the improvements are available to the community; and 3. The payment of funds for the improvements will assist in the elimination of blight within the Canby-Hilltop-Cypress project area; and approving the use of Tax Increment Funds in the amount of $110,000 to assist with the development of the Turtle Bay Museums and Arboretum Facility to provide restrooms in the public area by moving the existing fence. I Council Member Pohlmeyer did not support the proposal stating that $60,000 to move a fence and gate was, excessive and suggested that a less expensive alternative be sought. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, Murray, Stegall, and Mathena Council Members - Pohlmeyer Council Members - None Council Members - None I Residual Receipts Loan - Northern Valley Catholic Social Service for the Saint Clare Court Affordable Housing Project (R-030-100-055) It is the recommendation of Assistant City Manager the City Council approve in concept, a Residual Receipts Loan in the amount of $400,000 of HOME program funds to Northern Valley Catholic Social Service.(NVCSS) for development ofa 14-unit affordable housing complex at the west end of Saginaw Street for the very-low-income mentally ill with a total project cost estimated at $2.65 million; final approval contingent upon NVCSS receipt of a funding commitment from the u.S. Department of Housing and Urban Development through "Section 811" Program in the amount of $1.15 million, receipt of a funding commitment from the California Department of Housing and Community Development (HCD) in the amount of$I.1 million through the Multi.. Family Housing Program, and if necessary, receipt of a funding commitment from the Federal Home Loan Bank through the Affordable Housing Program to secure additional project funding in the event of a shortfall. Extension of Lease Agreement -, Shasta Cascade Rail Preservation Society (C-070-100) It is the recommendation of the Support Services Director that the City Council authorize I staff to amend the Lease with Shasta Cascade Rail Preservation Society (SCRPS) extending the term for five-years in the amount of $~4.00 annually for 2.02 acres of real property located near the Clear Creek Wastewater Treatment Plant. Resolution - Declaring intention to abandon a portion of a public service easement adjacent to 624 Y olla Bolly Trail; and Setting Public Hearing - to consider abandon of public easement (A-OI0-I00) It is the recommendation ofthe Development Services Director that Resolution No. 2005-55 be adopted, a resolution of the City Council of the City of Redding declaring its intention to vacate a 10- foot wide portion of a public service easement adjacent to property located at 624 5/3/2005 93 . Y olla Bolly Trail (A-2-05), requested by property owner Jordan Taylor of Redwood Shasta Investors as it is not needed. It is further recommended that a public hearing be set for June 7, 2005, to consider same. I Resolution - Authorizing signing of the California Oregon Transmission Project (COTP) owner agreements: 1) Interim Participation Agreement, 2) Project Operation and Maintenance Agreement, 3) W AP A Facilities Interconnection Agreement, and 4) Owners Coordinated Operation Agreement (E-120-025) It is the recommendation of the Electric Utility Director that Resolution No. 2005-56 be adopted, a resolution of the City Council of the City of Redding authorizing the City Manager and the Electric Utility Director to execute the following California-Oregon Transmission Project (COTP) owner agreements: .1) Interim Participation Agreement, 2) Project Operation and Maintenance Agreement, 3) Western Area Power Administration Facilities Interconnection Agreement, and 4) Owners Coordinated Operation Agreement, due to the recent purchase by Redding Electric Utility of the City of Shasta Lake's interest in the COTP. Accept Homeland Security Grant - Shasta County Sheriffs Office of Emergency Services (G-100-070 & P-150-150) . It is the recommendation of the Police Chief that the City Council accept a special response vehicle from the Shasta County Sheriffs Office of Emergency Services acquired through a U.S. Homeland Security grant to the Shasta County State Homeland Security Program in the amount of$150,000. I License Agreements - Experimental Aircraft Association (EAA) and Hillside Aviation, Inc. for "Aviation Day 2005" at Benton Airpark (A-090-020 & A-070-080) It is the recommendation ofthe Support Services Director that the City Council authorize the Mayor to execute License Agreements with Experimental Aircraft Association and Hillside Aviation, Inc. for use of a portion of Benton Airpark to conduct "Aviation Day 2005" on June 19,2005, from 7:00 a.m. to mid-afternoon. The City will not receive any revenue nor incur any costs from this event. Fourth Amendment to License and Permit for Commercial Activities - Horizon Air Industries, Inc. (C-070-100& A-090-1 00-300) It is the recommendation of the Deputy City Manager that the City Council approve the Fourth Amendment to the License and Permit for Commercial Activities for Horizon Air Industries, Inc. to lease an additional 68 square feet of space in the passenger terminal for a total of945 square feet in the amount of$I,712.75 per month, with all other terms to remain the same. License Agreement - Jim & I Aviators for "Open Day Fly-In" at Redding Municipal Airport (A-090-100 & A-070-080) It is the recommendation of the Deputy City Manager that the City Council approve the License Agreement with Jim & I Aviators for use of a portion of the facilities at Redding Municipal Airport to conduct "Open Day Fly-In" on June 18,2005 from 12 noon to 4:00 p.m. I Grant Applications - Indian Gaming Local Community Benefit Committee (G-I00-170 & B-080-650-639) It is the recommendation of the Deputy City Manager that the City Council authorize submission of six grant applications to the Indian Gaming Local Community Benefit Committee as follows: 1. Water Utility - $110,000 for a portion of the $1.1 million waterline project to improve reliability, capacity, and fire flow in south Redding, including the Win River Casino. property. 2. Engineering Division - $100,000 for south Bonnyview Road Widening Project study. 3. Fire Department - $18,000 as a match for a Federal Emergency Management Agency grant to improve and upgrade Fire Department communic~tion equipment. 4. Fire Department - $5,110 for an Automatic External Defibrillator. 5/3/2005 94 5. Police Department - $20,000 for two Lidar (radar) units for traffic enforcement on State Route 273 and South Bonnyview Road and overtime for special events and/or high traffic congestion. 6. Police Department - $73,000 to relocate a back-up computer system from Redding Police Department to SHASCOM. for a total grant in the amount of $326, 11 O. Encroachment Permit Agreement - McConnell Foundation (A-070-045 & A-OlO-040) It is the recommendation of the Development Services Director that the City Council authorize staff to approve an encroachment permit with McConnell Foundation for construction of a maintenance building within a public service easement at 899 North Market Street. I Award of Bid - Bid Schedule No. 3806, Scott Road Water Main Replacement (B-050-020 & W -030-725) It is the recommendation of the Development Services Director that Bid Schedule No. 3806 (Job No. 2244), Scott Road Water Main Replacement be awarded to MDS Construction in the amount of $92,850, with an additional $15,000 for administration and inspection fees, and an additional $9,300 for a construction contingency fund, for a total of$ll7,150. Subdivision Agreement - Terra Vista Estates SubQivision (S-1 01-046) It is the recommendation of the Development Services Director that the City Council authorize the Mayor to execu,te the Subdivision Agreement with Gary Duckett for Terra Vista Estates Subdivision (S-9-02), located on the east side of Chum Creek Road at Loma Vista Street. Consulting Agreement - Boyle Engineering Corporation (A-170-075) It is the recommendation of the Development Services Director that the City Council authorize the Mayor to execute the Consulting Agreement with Boyle Engineering Corporation resulting from award of Bid Schedule No. 3804 (April 5, 2005) in an amount not-to-exceed $300,000 for engineering services for a three-year term relating to services for formation of new and administration of existing Landscape Maintenance Districts, funding provided through collection of administrative charges from the district and portions of final map processing fees. I Council Member Murray observed that the recommendation included in the Report to City Council dated April 26, 2005, stated that funding for the services of Boyle Engineering Corporation would come from administrative charges collected from the districts and development fees. He contended that it was not proper for such services to be funded through development fees. Development S,ervices Director Hamilton concurred and advised that the Report should have stated that funding would come from processing fees charged at the time of the permitting. Subdivision Agreement - River Ridge Terrace Unit 2 (S-100-654-700) It is the recommendation of the Development Services Director that the City Council authorize the Mayor to execute a Subdivision Agreement with Three Seasons Development for River Ridge Terrace Subdivision, Unit 2, located south of Quartz Hill Road. Design and Permitting - Shasta View Drive between Collyer Drive and Manzanol:lks Drive; I and Authorize Expenditure of Traffic Impact Fee (TIF) Funds - for same (S-070-l00-700) It is the recommendation of the Development Services Director that staff be directed to - commence environmental permitting, right-of-way needs assessment, and design of for the extension of Shasta View Drive between Collyer Drive and Manzanoaks Drive. It is further recommended that an expenditure of Traffic Impact Fees (TIF) be authorized in the amount of $500,000 for same. Wastewater Service Charges - 810 Overhill Drive (W-020-590-075) 5/312005 95 It is the recommendation of the Assistant City Manager that the City Council approve the transfer of previously paid wastewater services funds paid by the Elizabeth Ann Hunt Living Trust at 810 Overhill Drive for payment in-full of wastewater connection fees. Wastewater service charges were paid in error because the owners believed they were connected to City services. The residents are now removing the septic system at 810 Overhill Drive and will connect to City services. I Resolution - Approving Administration of Workers' Compensation Claims In-house (R-l 00-950-1 00) It is the recommendation ofthe Personnel Director that Resolution No. 2005-57, a resolution of the City Council of the City of Redding, approving in-house administration of Worker's Compensation claims, effective July 1, 2005. MOTION: Made by Council Member Murray, 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: Council Members - Dickerson, Murray, Pohlmeyer, Stegall and Mathena Council Members - None Council Members - None Council Members - None NOES: ABSTAIN: ABSENT: Resolution Nos. 2005-52, 2005-53, 2005-54, 2005-55, 2005-56, and 2005-57 are on file in the Office of the City Clerk. I PUBLIC HEARING RESOLUTION - Accepting the 2005-2009 Consolidated Plan for Community Development Programs (G-lOO-030-l00 & G-100-075) The hour of7:00 p.m. having arrived, Mayor Mathena opened the public hearing regarding the 2005-2009 Consolidated Plan for Community Development Programs. The following document is on file in the office of the City Clerk: Affidavit of Publication - Notice of Public Hearing City Clerk Strohmayer advised that no written protests were received. . Assistant City Manager Starman recalled that in May 2000, the City Council approved the second Consolidated Plan (Plan) which was submitted to the U.S. Department of Housing and Urban Development (HUD) and which provided a five-year plan for a unified vision primarily for Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) programs. He explained that in order to access program funds, a Plan must be submitted every five years and developed in concert with the community, non-profit agencies, and service providers. Mr. Starman recommended that a resolution be adopted accepting the 2005-2009 Consolidated Plan for Community Development Programs. I Richard Paz, Redding resident, expressed concern that not enough redevelopment funds are being spent for low-income residents. He asserted that the Plan did not provide assurances that homeless and special needs groups were monitored by citizen groups. Mr. Starman responded that the criteria used to define a redevelopment project area (generally blight) differs from the data (census and census tract information) used to determine areas of need. He pointed out that the City Council has allowed utilization of Redevelopment housing funds throughout the community, not just in project areas, and invested heavily in many of the lower income neighborhoods such as Martin Luther King, Jr. and Parkview, although the maps do not depict that funding. Mr. Starman noted that there is oversight of homeless and special-needs care givers; pointing out that the Continuum of Care is a collaboration of those types of agencies or care givers and members participate by attending at least bi-monthlymeetings with discussions focused 5/3/2005 96 on how funding has been spent and invested in the community and the results of such investments. Council Member Murray indicated that he was supportive of the Plan but pointed out that the Plan appeared to have some calculation inconsistencies. Mr. Starman that advised those would be corrected prior to subrpittal to HUD. Mayor Mathena determined that no other individual wished to address this matter and closed the public hearing. MOTION: Made by Council Member Dickerson, seconded by Council Member Stegall, that Resolution No. 2005-58 be adopted, a Resolution ofthe City Council of the City of Redding accepting the 2005-2009 Consolidated Plan for Community Development Programs, and authorizing the City Manager to sign all necessary documents and submit the Plan to the U. S. Department of Housing and Urban DevelQpment. The Vote: Ayes: Council Members - Dickerson, Murray, Pohlmeyer, Stegall, and Mathena Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - None I Resolution No. 2005-58 is on file in the office of the City Clerk. PUBLIC HEARING RESOLUTION - Accepting the 2005-06 Action Plan and funding recommendations for the Community Development Block Grant (CDBG) Program and the Home Investment Partnerships (HOME) Program and submission to the U.S. Department of Housing and Urban Development (G-lOO-030-l00 & G-lOO-075) The hour of7:00 p.m. having arrived, Mayor Mathena opened the public hearing regarding the 2005-06 Action Plan and funding recommendations for the Community Development Block Grant (CDBG) Program and the Home Investment Partnerships (HOME) Program. The following document is on file in the Office of the City Clerk: I Affidavit of Publication - Notice of Public Hearing City Clerk Strohmayer advised that no protests were received. Assistant City Manager Starman advise~ that, as an "entitlement city," Redding is required each year, by the Department of Housing and Urban Development (HUD), to develop and implement plans, programs, and projects that provide decent housing and e~onomic opportunities for low- and moderate-income individuals and families. The Community Development Advisory Committee (CDAC) recently concluded its review process and finalized recommendations for use of Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Programs funds for the 2005-06 program year and has submitted an Action Plan (Plan) for consideration. Mr. Starman related that this year, the total amount available for CDBG allocations is approximately $1,028,400 which includes $73,126 from previous CDBG recipients for reallocation. Mr. Starman reviewed allocated funding amounts for various activities: $145,243 is available for Public Service Activities, $306,940 for Housing Management Services, $95,527 for Progr~m Administration, $20,000 for Long-Range Planning, and I $430,690 for other eligible public activities. ' Mr. Starman stated that the City will receive $599,651 in HOME funds of which $539,686 is for various affordable housing programs and projects and $59,965 for general administration. Mr. Starman advised that the CDAC and staff recommend that the City Council adopt the resolution accepting the proposed 2005-06 Action Plan and funding recommendations regarding the CDBG program, HOME funds contained in the Action Plan, and authorizing the City Manager to execute all necessary papers and file the Action Plan with HUD. Richard Paz, Redding resident, expressed concern that just off Eureka Way, a number of care 5/312005 97 providers must utilize the street when taking wheelchair patients back and forth to the medical facilities because the sidewalks do not afford adequate access. He urged that Americans With Disabilities Act (ADA) projects be given more priority and completed more expeditiously. He also observed that a newly-completed Caltrans improvement project on Eureka Way near the high school had a number of utility poles in the middle ofthe sidewalks obstructing handicapped movement. I Mr. Starman responded that the City has invested $50,000 to $100,000 annually to ensure that the City's sidewalks are ADA compliant, and although the City encompasses 60 square miles, ADA continues to be a priority. He surmised that the Caltrans project mentioned would be required to provide ADA compliance measures and suggested that Mr. paz contact Caltrans for more information regarding that project. Mayor Mathena determined that no other individual wished to address this matter and closed the public hearing. Council Member Dickerson recused himself from voting on this issue due to his service as a Board Member on the Youth Violence Prevention Council which is a funding recipient. MOTION: Made by Council Member Stegall, seconded by Council Member Murray, adopting Resolution No. 2005-59, a resolution of the City Council of the City of Redding accepting the 2005-06 Action Plan and funding recommendations relating to the Community Development Block Grant (CDBG) Program and the Home Investment Partnerships (HOME) Program and authorizing the City Manager to execute all necessary documents and submit the Action Plan to the U.S. Department of Housing and Urban Development (HUD). The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members: Pohlmeyer, Murray, Stegall, and Mathena Council Members: None Council Members: Dickerson Council Members: None I Resolution No. 2005-59 is on file in the Office of the City Clerk. PUBLIC HEARING - Addendum to the Mitigated Negative Declaration; ORDINANCE - Rezoning Application RZ-3-05 - Redding Municipal Code Title 18 (L-OI0-230) The hour of7:00 p.m. having arrived, Mayor Mathena opened the public hearing regarding an Addendum to the Mitigated Negative Declaration prepared for the Zoning Ordinance and Zoning Map amendments for portions of Redding Municipal Code Title 18. The following document is on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing City Clerk Strohmayer advised that no protests were received. . Development Services Director Hamilton related that after periodic review of rezoning applications, it is sometimes necessary to make revisions to ensure that the zoning designations and General Plan classifications of the properties are consistent as required by State law. Rezoning Application RZ-3-05 is a refining measure to remove such inconsistencies from the Zoning Map, and will affect approximately 71 properties. I Mr. Hamilton recommended that findings be made and that the City Council adopt the Addendum to the Mitigated Negative Declaration prepared for the City Zoning Map and that the City Council approve amendments to the Zoning Map, rezoning certain parcels for consistency with General Plan classifications, offer the ordinance for first reading by title only, and waive the full reading. Mayor Mathena determined that no one present wished to address this matter and closed the public hearing. MOTION: Made by Council Member Murray, seconded by Council Member Stegall, making findings that: 5/3/2005 98 1. The Addendum to the Mitigated Negative Declaration for the previously adopted Zoning Map provides the basis to determine that the proposed revisions will not have any significant impact on the environment. 2. The Addendum and its supporting documentation reflect the independent judgment and analysis of the City. The Vote: Unanimous Ayes Council Member Murray offered Ordinance No. 2344 for first reading, an ordinance of the City Council of the City of Redding adopting the Addendum to the Mitigated Negative Declaration prepared for the Zoning Map and adopting amendments to portions of the Zoning Map ther,eby rezoning certain parcels to provide consistency with General Plan classifications. I MOTION: Made by Council Member Murray, seconded by Council Member Stegall, that the full reading of Ordinance No. 2344 be waived and that the City Attorney be instructed to read the ordinance by title only. The Vote: Unanimous Ayes PUBLIC HEARING - RESOLUTION - Final Master Environmental Impact Report (EIR-2-02) for the Redding Oasis Center , (L-O 10-075) The hour of7:00 p.m. having arrived, Mayor Mathena opened the public hearing regarding the Final Master Environmental Impact Report (EIR-2-02) for the Redding Oasis Center by , Levenson Development. The following documents are on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Affidavit of Mailing - Notice of Public Hearing City Clerk Strohmayer advised that the following communications were received via fax today, after the close of business and were, therefore, distrib~ted t9 the City Council and staff this evening: a letter from Thomason Developm~nt Inc., supporting the project as a whole but expressing concerns regarding approval of the EIR before the Oasis Road Specific Plan is complete, and a letter from Cox, Castle & Nicholson, LLP representing Thomason Development, Inc., consisting of nine pages alleging inadequacies ofthe Draft EIR and Final Master EIR. I Development Services Director Hamilton provided highlights ofthe Report to City Council dated April 20, 2005, incorporated herein by reference, emphasizing that the only consideration for the City Council, at this time, is the adequacy of the Final Master Environmental Impact Report (FMEIR) for the Oasis Road Center (EIR-2-02) and that no project is being presented for consideration. He pointed out that the environmental documentation considers specific impacts to the environment should a project go forward. He noted that when a project is brought forward for consideration, issues regarding project construction such as traffic flow issues, etc.. could be mitigated through conditions of approval. Mr. Hamilton advised that the EIR identified three areas of unavoidable impacts which are air quality (unavoidable when additional people and vehicles are added to an area), hydrology, and storm water runoff. ~1. I City Engineer Tippin stated that with regard to storm water runoff, the project, as proposed, without any detention measures, would inundate approximately .4 acres ofland beyond the 100 year flood plain with .23 acres within the project and .17 outside the project area. During analysis of potential flood water detention, it was determined that if detention was applied it would result in inundation of 1.55 acres of additional land, making detention pointless. He pointed out that a portion ofthe proposed project is on Salt Creek which flows into Chum Creek and although this particular project would not impact Chum Creek enough to require detention, additional future projects would probably require a detention process to lower Chum Creek flood water eh::vations down stream Linda Moore, Member of the Gold Hills Neighborhood Committee, Phyllis Pollock, Parker 5/312005 99 Pollock, Gail Rich, Diana Peacock, and Dennis Bettencourt expressed concerns regarding the use of explosives during construction and resulting impacts to structures, financial responsibility for damages, cumulative impacts of the project, downstream flooding, failure to adequately address impacts by removing the proposed Hawley Road extension from the analysis, recirculation issues, discrepancies of policy and practice, and urban sprawl. I John Shuller, Redding resident, contended that the City Attorney's statement in the Report to City Council that the project was not under consideration but would be considered at a later date was in error. He asserted that a project description is required by CEQA in the EIR and can only be interpreted to mean that there is a project. Mike Ashby, Attorney for Levenson Development, urged certification of the FMEIR stating that many concerns will be resolved when the actual project comes back for consideration such as indemnification for the City and construction of a freeway interchange. He maintained that recirculation of the EIR is not necessary, an opinion shared by City Attorney Duvernay. He advised that Ms. Anna Shimko will be addressing the Council and she is not only CEQA Counsel for Levenson Development, but also legal counsel on a leading California Supreme Court case regarding recirculation ofEIRs. I Anna Shimko, Counsel for Levenson Development, advised that Mr. Shuller, in his earlier remarks regarding the project description confused the project description within the EIR with an issue of project approval. She related that CEQA states that the City does not have the authority to consider approval of a project until certification of an EIR, but once an EIR is certified, action must take place on the project within 180 days. She related that after a cursory review of the letter from Cox, Castle & Nicholson (received this evening), it appears there is nothing that raises concern for her client with regard to the sufficiency of the FMEIR or the need to recirculate the EIR. She stated the letter mis-characterizes CEQA requirements, draws a number of the erroneous conclusions regarding the relationship between the DEIR and the FMEIR, and alludes to insufficiencies of the EIR and project approval issues. She stated that she prepared a memorandum regarding the recirculation issue contained in the letter from Cox, Castle, & Nicholson, and the City Council was welcome to review it. She urged certification of the FMEIR. Mayor Mathena determined that no other individual wished to address this matter and Closed the public hearing. In response to Council Member Stegall, City Attorney Duvernay advised he had not had an opportunity to review the lengthy and detailed letter from Cox, Castle, & Nicholson dated May 3,2005, received this evening. He advised that City Council had the discretion, based on the late receipt of the letter, and the fact that no one has had an opportunity to review the information, to decide whether to accept it as part of the public hearing proceedings. I Council Member Murray expressed concern regarding the City's liability in relation to the mitigations listed in the FMEIR should there be litigation. Ms. Shimko advised that typically litigation does not occur until after project approval when the Notice of Determination is posted and the time for appeal begins. At that time, she pointed out that the applicant would defend the FMEIR, but the City could be indemnified by the applicant to protect the City in the event that litigation is brought forward. She noted that cities tend to rely primarily on the developer's counsel. In regard to mitigations of the EIR, she explained that conditions of approval for a project differentiate in that conditions of approval address policy topics that are not directly related to environmental impacts, and additional mitigation measures and conditions of approval, within legal limitations, can be part of the project provided there is a nexus with the project impacts. Mr. Duvernay added that there is some exposure for the City. In the eventuality oflitigation, awards for damages could be made if a court finds that there is any minor defect in the document. He related that as a rule, there are usually issues in these voluminous documents that can be found and raised at later hearings that were not raised earlier. He recommended that the developer be urged to indemnify the City for court fees at the time of project permitting. In response to Council Member Murray, City Attorney Duvernay explained that the intricate processing of the project will be worked on when the project is permitted and the only issue for Council consideration at this point is whether or not to certify that the process has been followed, and that the document is adequate and contains all mandatory elements as required. He assured that certification ofthe EIR will not foreclose initiation of measures for particular 5/3/2005 100 concerns when the actual project comes forward for review and can include conditions of approval at that time. Paul Miller, author of the Environmental Impact Report for Levenson Development, stated that possible blasting at the project site will be conducted in a controlled manner and only iflarge bulldozers cannot gain access to a specific area. According to Mr. Miller, the use of pile drivers is more detrimental than blasting because it has one ofthe most serious vibration effects, and he stat~d that Caltrans has 4etermined that pile driving could affect structural integrity between 25 and 50 feet away. In response to Council Member Dickerson, Mr. Duvernay stated that a performance bond could be required of the applicant at the time of permitting to ensure adequate funds to cover potential claims. I Council Member Murray stated that although he is a proponent of bringing industry to the community, he believed it premature to approve a project for the Oasis Road area prior to approval of the Oasis Road Specific Plan. He urged that a comprehensive financing plan be in place for all infrastructure, adding that the developer should be required to provide funding for later permanent improvements and should not be allowed to use all infrastructure available at the location. He asked the City to consider working with area property owners to create an assessment district to help fund infrastructure and perhaps build infrastructure now. Mr. Murray added that the applicant must realize that payment of Traffic Impact Fees does not limit traffic and street mitigation measures that may be imposed during the use permit process. Council Member Dickerson did not believe that the EIR adequately addressed cumulative impacts such as the Hawley Road extension which was an inevitable future improvement. Council Member Pohlmeyer pointed out that the future Hawley Road extension has been identified in the General Plan since the 1970's, was affirmed in the recent 2000 General Plan, and has been discussed extensively in relation to the Oasis Road development. He expressed consternation over the delay in completion of the Oasis Road Specific Plan, recalling that it was to have been completed many years ago. He believed it improper to attach approval of a Use Permit to the eventual completion of the Specific Plan given the time element involved. I MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Murray, excluding from the public hearing record late correspondence received on May 3,2005, from Cox, Castle, & Nicholson and from Jon Thomason, and adopting Resolution No. 2005-60, a resolution of the City Council of the City of Redding, making findings that: 1) the Final Master Environmental Impact Report (FMEIR) for the Oasis Center Development has been completed in compliance with CEQA, 2) all required notices for the Draft Master EIR (DMEIR) and FMEIR were made, public hearings were held which did not present any evidence to change conclusions in the DMEIR, with the exceptions and stipulations regarding the unavoidable impacts referenced, 3) that changes or alterations have been required in or incorporated into the project which avoid or substantially lessen the significant environmental effects as identified in the FMEIR, 4) the changes or alterations are within the responsibility or authority of the City and the FMEIR represent the City's independent judgement and analysis, and 5) written comments on the DMEIR by state and local agencies and individuals and responses to same were included in the FMEIR; and certifying the completeness and adequacy of Master Environmental Impact Report EIR-2-02 for the Redding Oasis Cen~er Development. The Vote: AYES: Council Members - Murray, Pohlmeyer, Stegall, and Mathena NOES: Council Members - Dickerson ABSTAIN: Council Members - None ABSENT: Council Members - None I Resolution No. 2005-60 is on file in the Office ofthe City Clerk At the hour of9:l0 p.m., Mayor Mathena declared the meeting in recess. At the hour of 9:25 p.m., Mayor Mathena reconvened the meeting. 5/312005 101 APPOINTMENT - Redding Planning Commission (B-080-300) MOTION: Made by Council Member Dickerson, seconded by Council Member Pohlmeyer, appointing Chris Arthur Young to the Planning Commission to serve a four-year term expiring May 1,2009. The Vote: Unanimous Ayes I SHASTA COUNTY'S TAX EXCHANGE PROPOSAL (T-01O-700 & T-01O-600) Mayor Mathena related that he received two letters from the Shasta County Board of Supervisors advising of its adoption of a proposed Global Tax Sharing Agreement that would require that the City give the County approximately $9 million over a three-year period. Mr. Mathena explained, however, that is does not appear that the County is offering anything to the City in exchange. In response to these letters, Mayor Mathena recommended that the City Council hold a workshop to discuss the pros and cons of a tax exchange agreement and develop recommendations. Council Member Murray was uncomfortable in supporting a workshop before the extent of the County's proposal was fully understood. He suggested that a City representative be appointed to meet with the County's representative, Shasta County Supervisor Trish Clark, for a fact-finding discussion. Council Members Stegall and Pohlmeyer suggested that an invitation be extended to Shasta County Board of Supervisors' Chair Kehoe to attend a Council meeting and address questions from Council Members regarding the County proposal. Thereafter, a meeting to discuss the proposal could be scheduled. I Council Member Dickerson believed that the County's proposal was not complete and there must be additional information to be gained by some type of joint meeting with the County. He concurred with Council Member Murray regarding appointing a representative from the City to meet with a representative from the County, but believed that staff would also need to attend such a meeting to assist with logistics and details involved in such a proposal. Council Member Pohlmeyer strongly opposed providing tax sharing monies to the County without significant benefit to City residents. MOTION: Made by Council Member Dickerson, seconded by Council Member Stegall, approving appointment of a representative to attend a fact- finding meeting with the County's representative, Supervisor Trish Clark, and be accompanied by appropriate staff. The Vote: Unanimous Ayes It was the consensus of the City Council to hold a special workshop meeting regarding a tax sharing agreement on May 24, 2005, at 7:00 p.m. Council Member Stegall nominated Mayor Mathena to be the City Council representative to the fact finding meeting. Mayor Mathena declined the nomination. I MOTION: Made by Mayor Mathena, seconded by Council Member Pohlmeyer, appointing Council Member Murray to meet with Shasta County Supervisor Trish Clark regarding the Shasta County Tax Sharing Proposal. The Vote: Unanimous Ayes UPDATE ON MAJOR PROJECTS - Stillwater Business Park (A-050-080 & E-050-500) Deputy City Manager Bachman advised that the schedule for the Stillwater Business Park is on track and that the Environmental Initial Study and Environmental Impact Report (EIS/EIR) have been circulated and the completed documents should be available this summer. He related that when Mayor Mathena and Electric Utility Director Feider were in Washington, D.C. recently, they met with Congressman Wally Herger who advised that he and Senator Diane Feinstein are willing to support an additional $2 million for the Stillwater Business Park. Congressman Herger also offered to schedule a meeting with the Environmental Protection Agency (EP A) who is a co-sponsor of the environmental portion ofthe project. 5/3/2005 102 Council Member Pohlmeyer suggested that all the permitting environmental agencies be invited to tour the Stillwater Business Park project site. No action was required on this informational item. UPDATE RE VISION-SETTING PROCESS (A-050-060) City Manager Warren related that Certified Management Consultant Nick Webb has agreed to facilitate the vision-setting process for the City of Redding. He explained that Mr. Webb will first meet individually with Council Members and then schedule a public meeting for Thursday, May 12, 2005, at 7:00 p.m. in the City Council Chambers to receive public input. He said that the information and ideas gleaned from the public forum will be integrated into a Vision-Setting Workshop/Special City Council meeting scheduled for Thursday, May 26, 2005, at 7:00 p.m. I No action was required on this informational item. MONTHLY FINANCIAL REPORT - Electric Utility '(B-130-070) Electric Utility Director Feider related that retail power sales revenue for March 2005, was $859,983 or 1.6%, below projections. Operating revenue after energy costs is $1,705,564 or 7.4 above expectations. The total cost of electricity through March 2005, was $19,670,330 or 40% above projections and the Utility's net operating results through March was $2,266,107. Mr. Feider reported that the trip to Washington, D.C. was related to energy issues before Congress. He stated that Assemblyman La Malfa, in the California legislature had championed the definition of hydro energy but it did not receive enough votes to get out of Committee and will not be voted on this year. He related that a the Independent Systems Operators (ISO) has anew Chairman of the Board and Chief Operating Executive (CEO) and there are concerns that ISO is not living up to arrangements made with Redding Electric Utility. Mr. Feider advised that he would keep the City Council apprised of any developments. I Mr. Feider recommended that the City Council accept the Monthly Financial Report for March 2005. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Dickerson, accepting the Monthly Financial Report for the Electric Utility for March 2005. The Vote: Unanimous Ayes PUBLIC POWER AGENCY PACIFIC NORTHWEST WIND ENERGY PROJECT WITH PPM ENERGY - Participation in the Modesto-santa Clara-redding (M-S-R) ; and SECOND AMENDMENT AND RESTATED PACIFIC NORTHWEST POWER SALES AGREEMENT - M-S-R (E-120-500 & E-120-270) Electric Utility Director Feider recalled that Redding Electric Utility (REU), as part of the Modesto-Santa Clara-Redding Public Power Agency (MSR), has participated in a contract with the Bonneville Power Authority (BP A) through the Pacific Northwest Power Sales Agreement (PNW -PSA). He related that the Agreement with BP A expires on September 30, 2005, and in anticipation of the portfolio loss, REU has negotiated a long-term purchase of shaped and firmed wind energy from PPM Energy for a term of 20 to 30 years. REU's participation would not exceed 30 MegaWatts (MW) to 50 MW nameplate capacity with a I 10 MW to 18 MW maximum delivery rate at a cost of approximately $0.063 per kilowatt- hour beginning in 2006. REU's anticipated annual cost would be between $5.7 million to $9.6 m~llion dependent on the amount of energy delivered to Redding. He noted that safeguards are built into the contract to protect REU from various scenarios that could occur in the future regarding pricing. He added that the Agreement is contingent upon federal production tax credits being extended and could create the need for price mitigations within the contract if not received. Mr. Feider advised that a second possible opportunity for additional power resources for REU is through a 50% share ofMSR' s interest as an owner in the public power White Creek wind energy project but would not be available until 2007 or 2008. He advised that 5/312005 103 participation by MSR in either the PPM Energy or White Creek projects requires an amendment to the PNW-PSA. Mr. Feider recommended that the City Council approve REU's participation in the MSR PNW-PSA with PPM Energy project, authorize the City Manager to execute the Second Amendment and Restated Pacific Northwest Power Sales Agreement with MSR, and authorize the City Manager to sell or layoff any green energy that may initially be surplus to the City's energy needs. I In response to Council Member Murray's concerns regarding veto power of Modesto (who is not participating in the Second Amendment), Redding Electric Resource Planner Arthur advised that legal counsel for MSR stated that because Modesto has optedout ofthe Second Amendment Agreement, their percentage interest is zero and, therefore, they have no veto power with regard to the terms of that Agreement. MOTION: Made by Council Member Murray, seconded by Council Member Dickerson, approving Redding Electric Utility participation in the Modesto-Santa Clara- Redding (MSR) Pacific Northwest Power Sales Agreement with PPM Energy for shaped and firmed wind energy fora term of 20 to 30 years, authorizing the City Manager to execute the Second Amendment and Restated Pacific Northwest Power Sales Agreement with MSR, and authorizing the City Manager to sell or layoff any green energy that may initially be surplus to the City's energy needs. The Vote: Unanimous Ayes MONTHLY FINANCIAL REPORT - General Fund (B-130-070) . Deputy City Manager Bachman reported that total revenue at the end of March was $50 million or $12,332,156 (32.7%) above staffs cash flow projection. Expenditures at month end, excluding encumbrances, total $48,377,237 or $3,669,484 (7.1 %) below staff s original projection. Encumbrances total $4,460,349. I Mr. Bachman recommended that the City Council accept the General Fund's Monthly Financial Report for March 2005. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall, accepting the General Fund's Monthly Financial Report for March 2005. The Vote: Unanimous Ayes ORDINANCE - Adding Section 14.08.245 - Prohibited Additives, to Redding Municipal Code Chapter 14.08 - Water (W-030) City Attorney Duvernay recalled that Measure A (Safe Drinking Water) was approved during the November 2,2002, General Municipal Election as a citizen initiative but did not include language incorporating it into the Redding Municipal Code (RMC). He advised that pursuant to a request by citizens regarding codification of the initiative, the City Council voted to incorporate the language into the RMC which will make it more readily accessible to the public and facilitate enforcement should that ever be necessary. I Mr. Duvernay recommended that the City Council approve an ordinance incorporating the language of Measure A into the Redding Municipal Code by amending RMC Title 14 adding Section 14.08.245, offer the ordinance for first reading by title only, and waive the full reading. Michael Czehstowski, Redding resident, urged approval of the ordinance. MOTION: Made by Council Member Murray, seconded by Council Member Pohlmeyer, amending Redding Municipal Code Chapter 14.08-Water by adding Section 14.08.245 relating to prohibited additives in the City's public water supply. The Vote: Unanimous Ayes Council Member Murray offered Ordinance No. 2345 for first reading, an ordinance ofthe \ City Council of the City of Redding amending Redding Municipal Code Chapter '14.08- Water by adding Section 14.08.245 relating to prohibited additives in the City's public water supply. ..' i~" ~, 5/312005 104 MOTION: Made by Council Member Murray, seconded by Council Member Pohlmeyer, that the full reading of Ordinance No. 2345 be waived and the City Attorney be instructed to read the ordinance by title only. The Vote: Unanimous Ayes PUBLIC COMMENT (T -080 & T -080-500) \ Al Fandrich, resident of River Park Highlands Subdivision, expressed concern regarding safety issues at the turn from Bentwood Drive to Quartz Hill Road, and barricades located at 470 River Park Drive. He asked that the barricades be removed. City Engineer Tippin advised that he would contact Mr. Fandrich to discuss the issue. I (S-070 & E-020) Gail Rich, Redding resident, contended that the proposed extension of Hawley Road is environmentally detrimental and no one has analyzed impacts to the creek that exists there. She also expressed confusion regarding eminent domain proceedings. (S-070-285) Richard Paz thanked City staff for prompt attention to tree trimming and sidewalk repairs near his property. ADJOURNMENT There being no further business, at the hour of 10:38 p.m., Mayor Mathena declared the meeting adjourned. APPROVED I ATTEST: ~~ City Clerk '41 I '., " 5/312005