HomeMy WebLinkAboutMinutes - City Council - 2005-10-18
242
City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress Avenue,
Redding, California
October 18,2005 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Judge Gallagher.
The Invocation was offered by Police Chaplain Ray Foust.
The meeting was called to order by Mayor Mathena with the following Council Members I
present: Dickerson, Murray, Pohlmeyer, and Stegall.
Also present were City Manager Warren, Assistant City Manager Perry, Assistant City
Manager Starman, Deputy City Manager Bachman, City Attorney Duvernay, Electric Utility
Director Feider, Development Services Director Hamilton, Finance Officer Strong, Police
Chief Moty , Community Services Director Niemer, Electric Group Manager Keener, Electric
Program Manager Graves, Energy Services Account Manager Jackson, Housing Specialist
White, City Clerk Strohmayer, Assistant City Clerk Sherman, and Executive Assistant
Stribley.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of minutes: Regular Meeting of September 20, 2005, and Special Meeting of
October 4,2005
Approval of Payroll and Accounts Payable Registers
(A-050-100-500)
It is recommended that Accounts Payable Register No.7, check numbers 833937 through
834410 inclusive, in the amount of $5,109,480.17, for the period of October 3,2005, through I
October 14,2005; and Payroll Register No.8 electronic deposit transaction numbers 172929
through 173677 and check numbers 526721 through 526909 inclusive, in the amount of
$2,213,378.85, for the period of September 25,2005, through October 8,2005, be approved.
TOTAL: $7,322,859.02
Assign 2005 Single-Family Private Activity Bond Fair Share Allocation - CRHMFA
Homebuyers Fund (formerly California Rural Home Mortgage Finance Authority)
(R-030-100-400)
It is the recommendation of the Assistant City Manager that the City Council authorize that
a letter be sent to the CRHMFA Homebuyers Fund (CHF) assigning the City's 2005 Single-
Family Private Activity Bond Fair Share Allocation in the amount of $983,043 to CHF in
order to continue the City's participation in the tax-exempt First-Time Homebuyers program
(FirstHouse) administered by CHF and that a letter be sent to the California Debt Limit
Allocation Committee (CDLAC) reflecting same.
Surplus City Property - Adjacent 1095 Hillcrest Place
Sale of City-owned Property - Willard and Jane Woodward
(C-070-200)
It is the recommendation of the Assistant City Manager that the City Council declare
approximately 1,500 square-feet of 3.25 acres as surplus City-property subject to retention
of an easement over the entire area for existing utilities, located north of Foothill Boulevard
adjacent to 1095 Hillcrest Place; and authorize negotiation of the sale of said property to
Willard and Jane Woodward for fair market value subject to the W oodwards paying all costs
associated with the transaction and indemnification of the City for~property damages should
there be a water line rupture in the future.
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Sales Agreement - Dr. Baldev Singh
(C-070-200)
It is the recommendation of the Assistant City Manager that the City Council authorize the
Mayor to execute a Sales Agreement with Dr. Baldev Singh for City property at 2410
Sonoma Street in the amount $185,000. Dr. Singh was the sole bidder at the auction held
on October 3, 2005, for said property. The revenue will go to the Capital Investment and
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Economic Development fund to be used as early repayment on the Electric Utility cash
advance to purchase the Stratte property.
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Second Amendment to Ground Lease - Turtle Bay Exploration Park and
Deed Right-of-way - State of California for Highway 44 widening project
(C-070-250-250 & C-070-200)
It is the recommendation of the Assistant City Manager that the City Council approve the
Second Amendment to the Ground Lease with Turtle Bay regarding 1.23 acres to be deeded
to Caltrans, and .72 acres for a temporary easement to Caltrans to be returned to Turtle Bay
at the end of the Highway 44 Widening Project.
It is further recommended that the City Council authorize the Mayor to execute a Contract
and Deed of Right -of-Way to Caltrans for the Highway 44 Widening Project consisting of
1.23 acres, that the City Manager be authorized to execute a temporary construction easement
to Caltrans for the Highway 44 Widening Project consisting of .72 acres which will revert
to the Turtle Bay Ground Lease upon completion of the project, and that staff be directed to
deposit revenue (possibly $56,000) from the Caltrans Right-of-Way in a special fund to pay
for related project purposes by the City.
Award of Bid - Bid Schedule No. 3872, Purchase of 115/12.47kv Distribution Power
Transformer for tqe Canby Substation Expansion Project
(B-050-100 & E-090-140-180)
It is the recommendation of the Electric Utility Director that Bid Schedule No. 3872,
Purchase of 115/12.47kv Distribution Power Transformer for the Canby Substation
Expansion Project be awarded to Kuhlman Electric, Inc., in the amount of $711,713.71 to
provide a 115/12/47kV distribution power transformer.
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Notice of Completion - Bid Schedule No. 3805, Buckeye Water Treatment Plant Filter
Replacement Project
(B-050-020 & W -030-600)
It is the recommendation of the Development Services Director that Bid Schedule No. 3805
(J ob No. 2253), Buckeye Water Treatment Plant Filter Replacement Project awarded to ERS
Industrial Service, Inc., be accepted as satisfactorily completed and that the City Clerk be
authorized to file a Notice of Completion with the Shasta County Recorder. Final price is
$296,411.37.
Resolution - Adopting the Mitigated Negative Declaration and Mitigation Monitoring
Program for the Lake Redding Boat Ramp Rehabilitation Project
(P-050-650)
It is the recommendation of the Development Services Director that Resolution No. 2005-
142 be adopted, a resolution of the City Council of the City of Redding adopting the
Mitigated Negative Declaration and Mitigation Monitoring Program for the Lake Redding
Boat Ramp Rehabilitation Project.
Award of Bid - Bid Schedule No. 3828, Henry Avenue Street Improvement Project
(B-050-020 & S-070~100)
It is the recommendation of the Development Services Director that Bid Schedule No. 3828
(Job No. 8649), Henry Avenue Street Improvement Project be awarded to Hutchins Paving
and Engineering Inc., in the amount of $91,864, and approve an additional $10,000 for
administration and inspection fees, and an additional $10,000 for a construction contingency'
fund, for a total amount of $111 ,864.
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Award of Bid - Bid Schedule No. 3868, Engineering Design Services for Clear Creek
Wastewater Treatment Plant Expansion Project
(B-050-100 & W -010-450)
It is the recommendation of the Development Services Director that the City Council award
Bid Schedule No. 3868, Engineering Design Services for the Clear Creek Wastewater
Treatment Plant Expansion Project to CH2M Hill and authorize staff to negotiate an
agreement for said services in an estimated amount of $7,998,000.
Re-advertise - Bid Schedule No. 3865, Foothill Reservoirs Replacement Project
(B-050-020 & W -030-450)
It is the recommendation of the Development Services Director that Bid Schedule No. 3865
(Job No. 2241), Foothill Reservoirs Replacement Project be re-advertised for a future date
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244
as the engineer's estimate is $1,700,000, and only one bid was received on September 13,
2006, in the amount of$2,753,840. Sufficient funds do not exist in the Water Utility budget
to cover the amount of that bid.
Increasing Contingency Fund - Bid Schedule No. 3851,2005 Street Overlay Project
(B-050-020 & S-070-200)
It is the recommendation of the Assistant City Manager that the City Council approve the
increased to the construction contingency fund for Bid Schedule No. 3851 (Job No. 2248),
2005 Street Overlay Project in the amount of $375,000 because the City was advised that it
would receive that amount in Proposition 42 funds, but the funds have not been forthcoming.
It is proposed to move this money forward from the 2006-07 Street Fund and then backfill I
the amount when the Proposition 42 funds are received.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
that all the foregoing items on the Consent Calendar be approved and adopted as
recommended. The Vote:
AYES: Council Members - Dickerson, Pohlmeyer, Murray, Stegall, and Mathena
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2005-142 is on file in the Office ofthe City Clerk.
PUBLIC HEARING - 2005 Spending Plan for Citizens Option for Public Safety (COPS)
Program funds; and
RESOLUTION - Accepting and appropriating grant funds
(G-100-170/P-150-150/B-130-070)
The hour of 7 :00 p.m. having arrived, Mayor Mathena opened the public hearing regarding
the proposed spending plan for State funds received through the Citizens Option for Public
Safety (COPS) Program.
The following document is on file in the Office of the City Clerk:
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Affidavit of Publication - Notice of Public Hearing
City Clerk Strohmayer advised that no protests were received.
Police Chief Moty advised that each year, grants are available through the State of California
Citizens Option for Public Safety (COPS) Program. He related that the proposed Utilization
Plan will include $50,000 for ongoing Integrated Public Safety System (IPSS) mobile data
costs, $10,000 for annual maintenance costs for the mobile data equipment, and $67,636 for
personnel costs related to the mobile data and IPSS projects.
Chief Moty recommended that the City Council approve the proposed Citizens Option for
Public Safety Program Utilization Plan and adopt a resolution accepting and appropriating
$127,640 in State COPS funds for the purpose set forth above.
Mayor Mathena determined that no one present wished to address this matter and closed the
public hearing.
MOTION: Made by Council Member Dickerson, seconded by Council Member Murray, I
approving the Citizens Option for Public Safety Program Utilization Plan and adopting
Resolution No. 2005-143, a resolution of the City Council of the City of Redding approving
and adopting the 10th amendment to City Budget Resolution No. 2005-77 accepting and
appropriating $127,640 in State Citizens Option for Public Safety Program grant funds for
fiscal year 2005-06. The Vote:
AYES: Council Members - Dickerson, Murray, Pohlmeyer, Stegall, and Mathena
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2005-143 is on file in the Office of the City Clerk
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UPDATE ON MAJOR PROJECTS - Sports Facilities
(A-050-080/P-050-70Q-600IP-050-600-200)
Community Services Director Niemerprovided a status report on the Aquatic Center and Big
League Dreams."
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Aquatic Center - Ms. Ni~mer advised that in the last three years, the Aquatic Center has
enjoyed more than 300,000 customer visits, provided over 9,000 swim lessons, and more
than 4,500 swimmers participated in competitions at the Center. In comparison to 2001, the
last year that the 55-year old "Redding Plunge" (Plunge) was still operating, the Plunge
experienced 11,607 attendees while the Aquatic Center hosted 101,719 attendees this year.
Ms. Niemer pointed out that revenues are on pace for a net gain this year of $10,500 and she
noted that in 2001, the Plunge reported an annual loss of $40,000. Ms. Niemer stated that
the community has overwhelmingly embraced the Aquatic Center and its many programs and
events. She also invited everyone to experience the "Spooky Lagoon" on Halloween
weekend, which is also the night for the grand opening of "Jump River" playground.
Big League Dreams - Ms. Niemer related that there have been over 200,000 paid guests at
the Big League Dreams (BLD) Sports Complex and it is averaging 740 paid admissions per
week night. She stated that over 3,000 league games have been played and 192 teams
participated this season. She believed that the Transient Occupancy Tax (TOT) numbers will
exceed original estimates because 99 % of the teams competing at BLD are coming from out
of town. She added that other programs played at the facility include hockey, indoor soccer,
and volleyball.
Ms. Niemer advised that the success of B ig League Dreams puts it on pace to meet or exceed
the moderate estimated revenue and lease payments to the City should begin in four years.
No action was required on this informational item.
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UPDATE ON MAJOR PROJECTS - Veterans Home
(A-050-080 & E-050)
Assistant City Manager Perry stated that on October 7, 2005, the State Public Works Board
accepted and approved the Veterans Home site donated by the City. Design for the facility
is scheduled to begin Jup.e 2007, with construction to commence in 2009, and completion
anticipated for 2010. He noted that construction of Veterans facilities in Los Angeles will
take precedence and while there are concerns regarding cost escalation, it is hoped these
facilities will be completed sooner than scheduled.
No action was required on this infoqnational item.
JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT
AGENCY
At the hour of 7:22 p.m., Vice Mayor/Agency Chair Murray convened the Special Meeting
of the Redding Redevelopment Agency for a joint meeting with the City Council.
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MODIFICA nON TO THE DOWNPA YMENT ASSISTANCE PROGRAM
(R-030-100-040) "
Assistant City Manager Starman provided highlights of the Report to City Council and
Redding Redevelopment Agency (RRA) dated October 7, 2005, recalling that the
Downpayment Assistance Program (DAP) was established in 1988 to provide silent second
loans for low- to moderate-income households to assist them with the purchase of their first
home. In 1993, the City was awarded funding through the State of California Home
Investment Partnership Program (HOME) for this purpose, and in 1998, the Homeownership
Assistance Program (HAP) was created to assist developmentally-disabled households to
purchase homes. He advised that the Neighborhood Focus Area Downpayment Assistance
. Program (DAP Plus) ~as adopted in 2003, concentrating on the Martin Luther King, Jr.
Neighborhood (MLK), and most recently, the New Futures Home Purchase Program (New
Futures) was developed targeting the Parkview and MLK neighborhoods.
Mr. Starman. explained that due to rising homes prices in the Redding area, particularly in
the starter home category, loan activity has slowed considerably and staff has determined that
modifications are necessary to allow low- to moderate-income households an opportunity to
purchase a home. He related that after an annual review of the median sales price for a home
in Redding, it appears that 95% of that amount is $299,250 .and that will be the maximum
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allowed under the DAP program. (He pointed out that an errata sheet had been provided to
Council correcting some figures in the staff report.)
To remedy this situation, Mr. Starman recommended the following changes: 1) Decrease the
buyer's minimum downpayment, 2) increase the loan amount in the DAP, DAP Plus, and
Hap programs, 3) increase debt-to-income ratios, 4) increase combined loan-to-value, 5)
allow hybrid adjustable rate mortgages, and 6) add language and clarification as set forth in
the staff report.
Mayor Mathena expressed concern regarding a proposed change that will no longer require
a Request for Notice of Change of Ownership during escrow. Mr. Starman explained that
staff and legal counsel determined that a Deed of Trust was sufficient. Housing Specialist
White added that after consultation, legal counsel advised that the City's interest would be
protected through the Deed of Trust. She pointed out that during past escrow proceedings
title companies suggested that the document was not necessary.
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Council Member Murray advised that he was supportive of the DAP programs, with the
exception of the DAP Plus which targeted neighborhoods such as Parkview and MLK. He
did not believe that the amount provided for purchasing a home in those neighborhoods
should be, essentially, a forgivable loan but that the accrued interest for the DAP Plus loan
should be repaid upon sale of the home and the funds returned to the DAP program to be
used by others.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
approving the proposed policy changes (including those on the errata sheet) by: 1) Decreasing
the buyer's minimum downpayment, 2) increasing the loan amount in the DAP, DAP Plus,
and Hap programs, 3) increasing debt-to-income ratios, 4) increasing combined loan-to-
. value, 5) allowing hybrid adjustable rate mortgages, and 6) adding language and clarification
(as set forth in the staff report) for the Downpayment Assistance Program, the
Homeownership Assistance Program, and the New Futures Home Purchase Program.
The Vote: Unanimous Ayes
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
approving the proposed policy changes (including those on the errata sheet) for the
Neighborhood Focus Area Downpayment Assistance Program. The Vote:
AYES: Council Members - Dickerson, Pohlmeyer, Stegall, and Mathena
NOES: Council Members - Murray
ABSTAIN: Council Members - None
ABSENT: Council Members - None
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NEW FACILITY FOR THE SHASTA COUNTY SUPERIOR COURT OF CALIFORNIA
(S-OlO & R-030-145-350)
City Manager Warren explained that the Superior Court of California (Court) has outgrown
its facilities, and meetings have been held between the City, Shasta County (County), and the
Court to determine a possible site for a new court facility. He stated that the Court prepared
a County-wide Court Facilities Master Plan that indicated the need for a 212 ,000 square foot
court facility. The Court desires to construct a facility as near the main jail as possible and
has explored a number of redevelopment opportunities near the existing Court House that
would involve property owned by the County. He related that due to time constraints, the
County has indicated it is unable to participate in future meetings. Mr. Warren stated that
it is in the City's interest to continue meetings with the Court in an attempt to keep job
opportunities in the Downtown area and added that funding will be provided through a future
bond issue. He stated that potential properties include a 40-acre parcel owned by the City,
the Union Pacific railroad property across from the Post Office, or the Downtown Mall.
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Mr. Warren recommended that the City Council direct staff to work with the Superior Court
to identify potential sites for the new courthouse.
Council Member Dickerson suggested that construction of a public safety campus be
explored that would encompass the Court, Sheriff, District Attorney, and Probation
Departments.
Council Member Pohlmeyer advised that the Court ranks fairly low on a long list maintained
by the State for areas needing a new court facility. He stated that Shasta Superior Court
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could possibly move up the priority list if a project is brought fOlWard demonstrating a high-
level of cooperation between various governmental agencies in the area. He pointed out that
if such a project was submitted early, before construction funds were promised to other areas,
the possibility of getting the project preferred by the Court was better than waiting for the
Shasta area to make its way up the list and receiving what funding was left at that time. He
added that ifthe Court waits, the State will more or less dictate the type of building Shasta
County will receive based on available monies.
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Council Member Murray expressed concern regarding hazardous materials problems at the
Union Pacific railroad site and did not believe it should be considered unless the railroad
would agree to provide cleanup.
MOTION: Made by Council Member Dickerson, seconded by Council Member Pohlmeyer,
directing staff to work with the Superior Court of California at Shasta County to identify one
or more potential sites for a new court facility.
The Vote: Unanimous Ayes
LETTER OF INTENT - Lithia Motors, Inc. and Thomason Development Company
(E-050 & R-030-200)
Assistant City Manager Starman related that the City and the Redding Redevelopment
Agency (RRA) are working with Lithia Motors, Inc. (Lithia) and Thomason Development
Company (Thomason) regarding the possibility of developing a new auto mall at the
southeast comer of Highway 44 and Airport Road. He stated that Thomason has purchased
a 35-acre parcel at th;1t location in addition, to 112 acres already owned adjacent those acres
for a total of approximately 147 acres.
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Mr. Starman pointed out that the proposed Letter ofIntent is non-binding and outlines that
1) Lithia and Thomason would develop a new auto mall and related commercial uses at the
location; 2) that the City and/or Agency would contribute approximately $2 million to help
finance the off-site' infrastructure associated with the proposed auto mall (most of the
improvements pertain to Airport Road and will be needed in the future with or without the
proposed auto mall); 3) the City would work with Lithia and Thomason to expedite the
entitlement process for the auto mall; and 4) Thomason would purchase the property that
Lithia currently owns on East Cypress Avenue and Hemsted Drive, and the City and the
Agency would assist in redevelopment of the property.
Mr. Starman recomme~ded that the City Council approve the Letter ofIntent between RRA,
Lithia, and Thomason for development of an auto mall at Highway 44 and Airport Road.
Victor Ogrey, President of the Chum Creek Bottoms Homeowners Association, urged
support for the auto mall at Highway 44 and Airport Road.
Roberta Wright, Redding resident, presented the City Council with a book entitled
"Redevelopment: The Unknown Government."
In response to Council Member Murray, Assistant City Manager Starman explained that the
$2 million proposed by the City would be for off-site infrastructure primarily for Airport
Road which would be done in any case and is slated for funding through Traffic Impact Fees
(TIF). Deputy City Manager Bachman added that over the next ten years there will be
approximately $12 millioIl set aside to the Traffic Impact Fee fund for the Airport Road
expanded project and the City's proposed $2 million would come from that fund.
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MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer,
approving the Letter of Intent with the Redevelopment Agency, Lithia Motors, and
Thomason Development for development of an auto mall at Highway 44 and Airport Road.
The Vote: Unanimous Ayes
At the hour of 8 :05 p.m., Vice Mayor/Agency Chair Murray adjourned the Special Meeting
of the Redding Redevelopment Agency.
PUBLIC BE~EFITS PROGRAM - Electric Utility
(E-090-100)
Electric Utility Director Feider provided an update of the Redding Electric Utility (REU)
Public Benefits Program explaining that it is part of Assembly Bill 1890 mandate passed in
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1996 requiring that 2.85 % of revenues of private- and publicly-owned electric utilities be set
aside for the following: 1) Demand-side management/efficiency (DSM), 2) research,
development, and demonstration (RD&D) of new electric technology, 3) renewable energy
resource development, and 4) low-income assistance. Mr. Feider advised that a total over
$12 million has been returned to the community in the form of rebates and incentives to
increase energy efficiency, introduction of innovative and renewable resources, and
assistance to low income customers during the course of the Program.
Mr. Feider related that REU is proposing to make another change to further increase the
efficiency of heating, air conditioning, and ventilation (HV AC) equipment by providing
rebates for new systems with an Energy Efficiency Rating (EER) rather than a Seasonal
Energy Efficiency Rating (SEER). He explained that the SEER rating is measured on a
HV AC unit at an outside temperature of 82 degrees over the course of the entire cooling
season, however, the EER measures the HV AC operating at an outside temperature of 95
degrees which provides far more energy savings.
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Mr. Feider recommended that the City Council accept the Public Benefits Program report,
including the change to a better energy efficiency rating system for HV AC rebates.
Council Member Murray urged REU to promote the "Power to the Seniors" program more
aggressively throughout the community.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Murray,
accepting the Public Benefits Program report, including the change to an Energy Efficiency
Rating system for HV AC rebates.
The Vote: Unanimous Ayes
JOINT MEETING OF THE CITY COUNCIL AND REDDING CAPITAL SERVICES
CORPORATION
At the hour of 8:12 p.m:, Mayor/President Mathena convened the Special Meeting of the
Redding Capital Services Corporation for a joint meeting with the City Council.
RESOLUTION - Approving the form and authorizing the execution of documents necessary
for multiple capital projects, and to reimburse prior capital expenditures that were made from
Redding Electric Utility reserves
(E-090 & D-050)
Electric Utility Director Feider recalled that at its regular meeting of June 21, 2005, the City
Council authorized Redding Electric Utility (REV) to develop and negotiate electric system
financing to fund multiple REU capital projects, several distribution and generation projects,
and reimburse prior capital expenditures made from REU's operating reserves through
issuance of Electric System Revenue Certificates of Participation, 2005 Series A. The
proposed financing aggregate principal is not-to-exceed $37.5 million, a True Interest Cost
not-to-exceed 5 %, and an Underwriter's Discount not-to-exceed $262,000. He pointed out
that an earlier rate lock will save the City approximately $600,000.
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Mr. Feider recommended that a resolution be adopted approving Certificate issuance and
execution of documents necessary for same to provide funding for multiple capital projects
and reimbursement of prior capital expenditures made from Redding Electric Utility reserves.
Mayor Mathena observed that this debt would not constitute a debt to the City or its General
Fund.
Council Member Murray pointed out that the bonds are secured by the cash flow paid by the
rate payers and calculated into the electricity rate, and questioned the likelihood of an electric
rate increase.
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Mr. Feider responded that the recently-approved REU budget assumed the approval of the
bond financing. He added that it will put a slight upward pressure on rates equal to
approximately 1 % in the short term, but the bonds supply funding necessary for the proposed
projects.
In response to Council Member Murray, Finance Officer Strong explained that the purpose
of the Redding Capital Services Corporation (RCC) is to allow REU to purchase funding
through an installment sale and also facilitates the bond issue. Mr. Feider added that the
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RCC is necessary in order to receive tax exempt financing and a lower interest rate on the
bond issue.
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MOTION: Made by Council Member Murray, seconded by Council Member Dickerson,
adopting Resolution No. 2005-144, a resolu,tion of the City Council of the City of Redding
approving the form and .autho!izing execution and delivery of a 2005 Installment Sale
Agreement, a Trust Agreement, a Certificate Purchase Contract, a Continuing Disclosure
Agreement, and an Official Stiltem.ent, and approving the distribution of a Preliminary
Official Statement, authorizing the procurement of a Municipal Bond Insurance Policy, and
certain other actions in coimection with Electric System Revenue Certificates of
Participation, 2005 Series A, to finance multiple Redding Electric Utility capital projects and
reimburse prior capital expenditures made from REU' s operating reserves in an amount not-
to-exceed $37.5 million. The Vote:
AYES: Council Members - Dickerson, Murray, Pohlmeyer, Stegall, and Mathena
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2005-144 is on file in the Office of the City Clerk.
MOTION: Made by Board Member Dickerson, seconded by Board Member Stegall,
adopting Redding Capital Services Corporation Resolution No. 2005-01, a resolution of the
Redding Capital Services Corporation approving the form and authorizing the execution and
delivery of a 2005 Installment Sale Agreement and a Trust Agreement and certain other
necessary actions in connection therewith. The Vote:
AYES: Board Members - Dickerson, Murray, Pohlmeyer, Stegall, and Mathena
NOES: Board Members - None
ABSTAIN: Board Members - None
ABSENT: Board Members - None
RCSC Resolution No. 2005-01 is on file in the Office of the City Clerk
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At the hour of 8:24 p.m., Mayor/President Mathena adjourned the Special Meeting of the
Redding Capital Services Corporation.
RESOLUTION - Intention to consider formation of the Hilltop Hotel Business Improvement
District (HHBID) and Setting Public Hearing
(A-170-015-003)
Electric Group Manager Keener recalled that at a 2004 City Manager's Business Breakfast
meeting attended by several Hilltop business leaders, those leaders voiced concerns regarding
the future of their retail area in light of the eventual completion of the Oasis Road
commercial/industri~l area. He st~ted that formation of a Business Improvement District
(BID) was discussed and they were apprized that if a BID was formed, the City could collect
assessments and those funds would be used to provide supplemental services and capital
improvements specific to the BID area. At that time, the Hilltop Business District Steering
Committee (Committee) was formed and after review, the Committee recommended that the
BID be a hotel-based assessment district because hotels would be the obvious beneficiaries
of improvements along Hilltop Drive from Highway 44 to East Cypress Avenue. The
Committee also determined that the assessment rate would not exceed 1.5 % of gross short-
term room rental revenue (stays of less than 30 days), less any local, state, or federal sales
taxes or TOT. It is estimated that $295,000 could be collected over the course of one year.
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Mr. Keener related that staff believes that formation of the HHBID will enhance the
character, appearance, and aesthetics of Hilltop Drive as well as area businesses. He stated
that a term of five-years has been set for the life of the HHBID and Mr. Keener provided a
slide show depicting the area ~s it would look with the proposed improvements.
Mr. Keener recommended that a resolution be adopted declaring the City's intention to
establish the Hilltop Hote,l Business Improvement District (HHBID) and that a public hearing
be set for December 6,2005.
In response to Council Member Murray, Mr. Keener advised that although the City could bill
the HHBID for collection of assessments (approximately $2,000), it has historically waived
that fee for other BIDs. Mr. Keener also pointed out that money for undergrounding of
utilities has been set aside in a fu.nd for that purpose throughout the City.
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Bert Meyer, Co-Chair of the Hilltop Hotel Business Improvement District Steering
Committee, urged approval of the HHBID and thanked staff for their hard work.
City Manager Warren stated that Electric Group Manager Keener and Energy Services
Account Manager Jackson were instrumental in guiding the formation of the Hilltop Hotel
Business Improvement District (HHBID).
MOTION: Made by Council Member Stegall, seconded by Council Member Dickerson,
adopting Resolution No. 2005-145, a resolution of the City Council of the City of Redding
declaring intention to establish the Hilltop Hotel Business Improvement District and setting
a public hearing for December 6,2005, at 7:00 p.m. to hear same. The Vote:
AYES: Council Members - Dickerson, Murray, Pohlmeyer, Stegall, and Mathena
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
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Resolution No. 2005-145 is on file in the Office ofthe City Clerk.
At the hour of 8:40 p.m., Mayor Mathena declared the meeting in recess.
At the hour of 8:48 p.m., Mayor Mathena reconvened the meeting.
RESPONSE TO "AN ANALYSIS OF REDDING CITY FINANCES"
(B-130)
In the Report to City Council dated October 12,2005, Deputy City Manager Bachman related
that staff has concluded that the City responses fairly address the findings and
recommendations to "An Analvsis of Redding City Finances" (Analysis) which was prepared
. by Dr. Steve Frates of The Center for Government Analysis. Staff, therefore, recommends
that the City Council accept the responses as submitted.
Mayor Mathena asked Vice-Mayor Murray to summarize the Analysis' findings and
recommendations and the City's responses because he had performed extensive research.
Vice-Mayor Murray explained that on September 27 ,2005, the City Council received a copy
ofthe Analysis prepared by Dr. Frates and commissioned by the Shasta Builders' Exchange,
the Greater Redding Chamber of Commerce, and the Shasta County Board of Realtors.
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Mr. Murray related that during an informal meeting with representatives from the Chamber
of Commerce, he and Mayor Mathena learned that certain groups shared concerns regarding
the long-term financial viability of the City and wanted to provide an opportunity for these
groups and others to provide input to the Council and community for improvements that may
be needed.
Mr. Murray explained that the main substance of the 99-page Analysis was condensed into
an Executive Summary containing ten "findings" and eleven "recommendations" most,
pertaining to the City Budget. He acknowledged that while the findings in the Analysis are
factual, they are presented out of context and lack a reference to clarifying documentation.
Mr. Murray said that Redding's budget has been modified over the years into summary form
in an attempt to make it more user friendly and because it is universally understood that
governmental budget information is extremely voluminous and difficult to decipher. He
added that the budget document must be reviewed in concert with the City's Ten Year
Financial and Capital Improvement Plans in order to have a true picture of City finances as
a basis from which to make meaningful observations or recommendations. He pointed out
that even though no reporting standard exists for budget preparation and presentation, the
City has won the "Distinguished Budget Presentation" award from the Government Finance
Officers Association for the past fifteen (15) years.
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Vice-Mayor Murray reviewed the ten Analysis findings and responses as follows:
1. The General Fund expenditures exceed . revenues in fiscal year 2003-04 by
$3,488,074.
Written Response: The expenditures exceeded revenues in fiscal year 2003-04
through a planned "draw down" of reserves of approximately $1.2 million, and for
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a on~-time large capital projects expenditure such as the Aquatic Center and Sports
Complex. The Ten-Year Financial Plan includes such expenditures and still
maintains at least a 5 % reserve. Currently the estimated reserve is approximately
17%, but part of the budget plan is for the reserve to dip to the minimum 5% reserve.
Mr. Murray added that having a Ten-Year Plan makes Redding unique, and it allows
the City to make well-informed decisions because there is a plan in place. Of the 465
general law cities in California, fewer than ten (10) have a Ten- Year Plan and
Redding has hosted delegates from other cities and shared information on why
Redding is so successful.
2.
General Fund expenditures are scheduled to exceed revenues by substantial margins
for fiscal years 2004-05 and 2005-06.
Written Response: The planned "draw down" of reserves and the rationale for same
are well documented in the 2005-07 Biennial Budget message. The fiscal challenges
of the next two years are examples of why the City accumulated reserves and, most
importantly, the Ten-Year Financial plan is balanced with a minimum 5% reserve.
Mr. Murray commented that the budget is a working document and a plan. With that
in mind, when there is significant revenue beyond the minimum 5 % reserve, the City
plans to spend it on needed projects or services while maintaining the 5 % reserve.
As an example, he said the City's General Fund revenues exceeded expenditures
from about 2000 through early 2004 and the City accumulated significant reserves
beyond the 5 % minimum. The City, therefore, spent some of the surplus funds and
will continue to "draw down" those funds through 2009, while maintaining the 5%
reserve. This practice is planned in advance.
3.
The Electric Utility is scheduled to have a substantial total deficit in fiscal years
2004-05 and 2005-06 according to the Biennial Budget ending June 30,2007.
Written Response: Like the General Fund, during the 2005-07 Biennial Budget
period, the Electric Utility is intentionally drawing down reserves that have
accumulated due to better-than-anticipated financial performance over the past
several years. This spending of reserves delays the need for rate increases and
reduces the amount needed for future rate increases producing rate stabilization.
Mr. Murray added that the Electri(! Utility also buys and sells energy on the "spot"
market in order to produc~ enough energy to serve the needs of its customers and to
generate revenue. While the Utility earns several million dollars per year in income,
it is difficult to define in the budget and reserves are currently approximately $40
million. He re-emphasized that one of the functions of this reserve is to stabilize
rates which benefits customers.
4.
The combined expenditures for all Enterprise functions are scheduled to be
substantially greater than the combined revenues for all Enterprise functions in fiscal
years 2Q04-05 and 2005-06 according to the Biennial Budget ending June 30, 2006-
07.
Written Response: There are two issues causing expenditures in Enterprise Funds to
exceed revenues during this Biennial Budget period. First, the Electric Utility is
deliberately spending down excess reserves as described above and, second, there are
a number of major capital projects planned in Municipal Utilities which will be
funded out of a combination of accumulated capital funds and the issuance of new
debt.
Mr. Murray explained that Enterprise Funds, paid by the rate payers, include sewer,
water, storm drain, solid waste, and electric and are separate from General Fund
monies. The Electric Utility is spending down excess reserves for the purchase of
resources and improvements which will be funded as described above. For example,
he said if $1 ,000 per year is saved within a fund, at the end of 10 years, there would
be an additional $10,000 available for spending. The Budget, at the end ofthat ten-
year period will then reflect that there is $10,000 more available for expenditures in
carry-over funds than will be received in income.
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2~2
5. As of June 30, 2004, the City's combined debt (governmental operations and
Enterprise operations) was $230,998,445. Enterprise functions were responsible for
$150,648,564 ofthis debt.
Written Response: This is correct and comparatively low to similar cities.
Mr. Murray related that the City's net assets are in excess of liabilities by $123
million. While each citizen of Redding may carry $2,600 worth of debt, each citizen
carries a net asset of $6,200. Putting this in context, he said that the citizen-debt ratio
is only important if the single focus is on debt and not assets. The City had $198
million cash against a debt of $231 million. But, when the City's net assets (the
value of everything the City owns less liabilities), are added to the cash, assets
exceed liabilities by $123 million. Mr. Murray added that by deducting the debt of
the Enterprise Fund, the Utility Fund, the Special Fund, the Redevelopment Agency
and the debt being paid by development fees, actual General Fund debt obligation is
less than $20 million, inordinately low for any city. He compared Redding's General
Fund debt to the City of Chico with a debt over $1 billion.
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6. Redding's investment in ajoint powers authority electrical generating plant was over
$17 million as of June 30, 2004. The authority's liabilities substantially exceed its
assets, and the City's share of this net liability was approximately $34 million.
Written Response: One of the assets of the Electric Utility Joint Powers Authority
(held with Santa Clara and Modesto utilities) is the Sanjuan, New Mexico, coal-fired
generation facility. While it is valued at less than its total liabilities, there is no
intention to liquidate this asset at a loss. The Electric Utility maintains that the coal-
fired generation facility remains a valuable and important part of its diverse resource
portfolio.
Mr. Murray stated that this coal-fired generation facility has turned out to be a very
lucrative investment because it produces the same amount of electricity year round.
While he acknowledged the $34 million debt, he compared it to the purchase of a
new car that depreciates considerably as soon as it is driven off the lot. While the
investment in this facility is significant, he said the City would only experience a loss
if it was sold and there is no intention to sell this asset.
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7. Sometime in fiscal year 2003-04, it appears that through a series of complex steps,
approximately $10 million was transferred from Debt Service funds to bolster the
General fund.
Written Response: During fiscal year 2002-03, the City Council set aside $10 million
from the General Fund into a separate Debt Service Fund to demonstrate that the
monies were set aside for future debt service payment. The transaction in 2003-04,
was returning the funds to the General Fund from which the debt service is paid.
Mr. Murray explained that when the State was in deep financial trouble between
2002 and 2004, it appeared that the State would take 1p.oney from city coffers. In
anticipation ofthis, the City transferred $10 million from the General Fund in 2003
to a debt service fund that could not be touched by the State. The City then returned
this money to the General Fund in 2004, which was prudent financial management.
Mr. Murray added that the City has set aside funds for debt service on its bonds, and
the Ten-Year Plan includes funds for this purpose.
8.
Personnel expenditures for municipal employees have increased more rapidly than
the per capita personal income of the citizenry.
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Written Response: City personnel costs have risen rapidly over the past several
years, some of which is driven by wage increases in labor agreements, but the
majority are due to rapidly increasing costs in the area of health and retirement
benefits.
Mr. Murray added that although the statement is true, it is misleading because what
an employee receives in a paycheck does not equal the total cost paid by the employer
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253
for having that employee, which includes insurance, retirement, PERS, etc. H~ re-
emphasized that the fast-growing costs for health insurance and retirement benefits
are the primary factors driving increased personnel expenses.
9.
Costs for funding retirement benefits given to municipal employees have
subst.antially increas~d. The benefits payroll allocation increased 439% from fiscal
year 2001-02 to 2005-06. The City Budget and Comprehensive Annual Financial
Report (CAFR) provide a clear comprehensive, detailed and current description of
the cost of providing ben~fits, especially retirement benefits.
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Written Response: Growth in Employee Benefits-Payroll Division including the cost
of Social Security, MediCare and retirement have increased as stated. But, the
Analysis comparison of2001-02 (at a time when PERS rates were at historical lows
due to over-funded accounts) to 2005-06 (when PERS rates are at historical highs
due to under-funded accounts) provides an inaccurate picture of costs not reflective
ofthe "norm" which is midway between the two. The issue is not only competitive,
but also negotiated, and increas~d retirement benefits are part ofthe process to retain
valuable and competent employees.
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Mr. Murray explained that as a participant in the Public Employees Retirement
System (PERS), the City contributes a certain amount each year to the retirement
system. From 1987 through 2004, PERS reaped the benefits oflucrative investments
in the stock market and advised cities that they because they were now super-funded,
no premiums were due for the foreseeable future. However, Redding continued to
set aside funds for premiums payments as usual. When the "dot com" market
crashed in 2004, PERS quickly reinstated premium payments and many cities (who
had not set aside funding) were left owing a substantial amount of money to PERS;
money they did not have. It is important to bear in mind that historically, retirement
costs have not risen 439 percent in such a short period of time, but because Council
is also concerned about PERS costs, it plans for the worst case scenario in the Ten-
Year Plan. Mr. Murray pointed out that after the state implemented a new retirement
plan for public safety employees of 3 % at 50, it placed economic pressures on cities
to follow suit. Redding is no different than other cities, and ifit can't keep pace with
this state-wide trend, highly-qualified employees would be attracted to other cities.
These competitive and union negotiated issues are ones in which the Council cannot
unilaterally act upon. He said Council is mindful of this future obligation, and it is
being regularly addressed in closed session when employee issues are discussed.
10.
The pending Governmental Accounting Standards Board (GASB) requirement to
account for all unfunded pension and health benefit liabilities will soon force
Redding to forthrightly address the substantial obligations involved in pension and
health care benefit liabilities. Current documentation does not provide adequate
information regarding these liabilities.
Written Response: Retirement costs are actuarially determined and adequately
documented. Hea~th care benefits are funded on a cash basis. Due to changes in
accounting standards, cities and counties will be required to perform actuarial
determinations for health benefits, but the City has already budgeted funds to
perform the initial actu~rial study during fiscal year 2005-06. The number projecting
retirement benefits into the future will be significant and is addressed by the City
budget. .
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Mr. Murray stated that the GASB requirement refers to adopted actuarial standards
for the City's healthcare benefits. The state changed the law for 2007-08 in how
general law cities must report. In last year's budget deliberations, he said the City
Council was aware that the law had changed and had already budgeted accordingly.
Retirement costs are already actuarially determined because it is prudent business
management to do so, and those costs have been projected out for the next ten years.
Vice-Mayor Murray then reviewed the following recommendations contained in the
Analysis:
1. A detailed organizational chart of each department, enterprise or other sub-unit of the
City should be provided in each section of the budget. At a minimum, this
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254
organizational chart should list the number of employees by job type.
2. A sequential separate listing of at least two of the previous fiscal years actual
operational (i.e. non-capital) and, separately, capital expenses for each department
enterprise or other sub-unit of the City should be provided in each section of the
budget. The same data in the same format should be provided for the current fiscal
year.
3. The operational (i.e. non-capital) expenses in recommendation #2 above should be
split into personnel expenses and non-personnel expenses. A concise description of
the non-personnel expense as appropriate at a reasonable level of detail.
4.
Personnel costs in recommendation #2 above should be provided by category of
employee (e.g. public safety, miscellaneous, executive, etc.). These personnel costs
should be split into salary costs and benefit costs. If the City pays for the employee's
share of the total retirement contribution that should be noted.
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5. The non-operational (i.e. capital) costs in recommendation #2 should be clearly
listed. A listing of these costs should include a clear description of each item,
referring to the appropriate schedule in the City's capital budget, and also state how
the item was financed.
6. Beginning fund balances in each fund in the Budget Summary Section shoulp clearly
and separately list the beginning fund balance, and also separately list any projected
funds that will subsequently be made available. For any projected funds available,
a clear description of the source of those funds and the rationale for using them
should be provided.
7. All debt obligations should be clearly described. At a minium, the use of the funds
raised by each debt issue should be clearly listed and described.
8. Any and all transfers between funds should be clearly listed and described.
9.
A schedule of employee benefits for each category of employee should be provided.
Each benefit should be clearly described.
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10. All budget messages in the front of each budget (proposed or adopted) should be
dated.
11. A comprehensive and accessible accounting of Redding's pension and health benefit
liabilities is urgently needed. Providing this information to the citizens in a clear
candid manner should be the city's immediate priority.
Vice-Mayor Murray stated that the aforementioned 11 recommendations are not particularly
surprising to the City and he had no problem with any of them nor does City staff. The value
is illustrates the issues Council and staff wrestle with on a continual basis; issues of which
the public is unaware. He emphasized that the Biennial Budget consists of three documents-
the Budget Summary, the Ten-Year Financial Plan and the City's Capital Improvement Plan
and must be considered together as a package. These documents are all available to the
public and compared to other cities, Redding has the most open budget process in the state
with citizens participating in the process even though budget hearings are poorly attended.
He did not find the Analysis to be confrontational but helpful. Mr. Murray said that with the
exception of Recommendation Nos. 1, 2, 3 and 10 (which can be implemented during
preparation of the next budget), the remainder of the recommendations already exist in one
or a combination of these and other City documents (Personnel Policies, Comprehensive
Annual Financial Report) or require a level of detail that does not seem appropriate for a
Biennial Budget. He was amenable to having further dialogue with Dr. Frates regarding
these issues or further discussion of the Analysis in general.
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Mayor Mathena and City Council Members thanked Vice-Mayor Murray for his research,
dedication to this process, and thoughtful responses to the Analysis. They also thanked
Finance Officer Strong and Finance Division staff for the quality work they provide to the
City.
Marie Whitacre, Executive Officer for the Shasta Association of Realtors, explained that the
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255
Shasta Association of Realtors, the Shasta Builders' Exchange, and the Greater Redding
Chamber of Commerce, hired Dr. Frates with the objective of seeking an independent review
of the City's budget processes and the long-term effects of employee benefit packages. It
was hoped, she said, that this Analysis would result in a budget process and budget
document that was easier to understand and for meaningful discussions about the City's
finances. She advised that the three organizations would be inviting Dr. Frates back to the
City to participate in an open forum.
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Steve Flader, Vice President of the Redding Firefighters Association, stated that while the
Analysis was fairly accurate, the attack spawned in The Record Searchlight newspaper
against Redding Firefighters was egregious. He said that the salary and benefit package
figures represented in the article were distorted and, contrary to the article, firefighters do not
retire as, "millionaires." He thanked Vice-Mayor Murray for what he termed as a "point -by-
point rebuttal" to the Analysis findings.
Richard Johnson, Redding resident, expressed concern regarding the inadequate staffing
levels for public safety which is less per capita now than in 1984. He pointed out that areas
such as the Parkview Neighborhood, in which the Police Department significantly reduced
crime a few years back, is beginning to see a resurgence of criminal activity due to lack of
police presence. Mr. Johnson reported that major industries throughout the country are
experiencing a collapse in their defined benefit plans, and information throughout the
corporate world shows serious shortfalls in retirement reserves. He questioned the difference
between General Fund Reserve and General Fund balance and the ultimate goal for the
public safety personnel ratio per 1,000 capita residents. He believed that educating the
community about the budget process would be beneficial.
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Douglas Bennett, Redding resident, related that the concept of a living wage was neglected
in the Analysis' approach to budgeting. He asserted that the source of the Analysis should
be considered prior to acting on the recommendations, and stated that simply because the
information was gathered by a reported "expert" hired to develop a policy to drive down
wages and pensions, does not make the information necessarily relevant. Mr. Bennett
contended that this is simply another attempt by these groups to oppose an increase to the
minimum wage and to exert downward pressure on workforce wages with a thinly disguised
"Analysis." He found the City budget well balanced and suggested that the wages and
benefits should be retained in order to continue the upward momentum in the standard of
living in this community.
Thomas Blue, Redding resident, stated that he found the Record Searchlight article regarding
firefighters' wages and retirement benefits upsetting because few people in this town earn
a $15 per hour wage. Most Redding residents can no longer afford a median price home
even in a two-income family.
Vice-Mayor Murray clarified that the Report to City Council was not intended as a rebuttal
to the Analysis because he did not find the Analysis inaccurate, however, it did not present
the complete picture. Further, if only the findings of fact and recommendations are read, he
said that one may not come to the same conclusions had more exhaustive, fact-finding
measures been taken. Mr. Murray believed that a public forum would be very beneficial and
encouraged the community to get more involved in learning how City finances work. He
stated that Redding is a very conservative community, and the City is financially healthy
because it is fiscally conservative and is one of only a few cities in California with a Ten-
Year Financial Plan.
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MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Murray,
accepting the study entitled: "An Analysis of Redding City Finances" and the Responses to
the Analysis, as submitted and approving 1) Implementation of all of recommendations in
the Analysis that are feasible and practical; 2) An ongoing review of the City's employee
benefit packages including methods to make these benefits more manageable and
understandable; 3) Consideration of hiring an expert to assist the City in review employee
benefit packages; and, Continued negotiations with all represented groups in good faith.
The Vote: Unanimous Ayes
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ORDINANCE - Amending vanous chapters of the Redding Municipal Code re
Administrative Remedies;
RESOLUTION - Establishing administrative fines; and Establishment of an Administrative
Hearings Board .
(C-11O-100/C-11O-100-400/B-080)
City Attorney Duvernay provided highlights of the Report to City Council dated October 10,
2005, incorporated herein by reference, explaining that the proposed ordinance contains
substantial amendments to the Redding Municipal Code (RMC) relative to the code
enforcement process. He pointed out that the amount of code enforcement cases average 620
active cases per month, but the code enforcement resources have been reduced in the 2005-
07 Biennial Budget.
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Mr. Duvernay pointed out that the RMC currently provides an Administrative Citation
process, however, state law dictates that it can only be used for non-recurring and minor
violations. All other cases must be referred to the criminal justice system in Shasta County
which is extremely over burdened and actions in the court system are expensive and time
consuming. He stated that the proposed ordinance would expand administrative remedies
in the RMC and authorize use of a citizen volunteer Administrative Hearing Board (Board)
comprised of three persons nominated by the Mayor and confirmed by the City Council. He
related that the Board would act as a final decision maker on appeals of an Administrative
Citation or the appeal of confirmation of a compliance order. The proposed ordinance would
provide flexibility to use either the Board or a retain a Hearing Officer or both. He advised
that the proposed ordinance would not take effect until January 1, 2006, so the Board
Members could be nominated and confirmed and other preparations made as necessary for
the proposed changes.
Mr. Duvernay recommended that a resolution be adopted establishing an "Administrative
Citation Schedule of Fines "for violations ofthe Redding Municipal Code; that the proposed
ordinance be offered for first reading amending Redding Municipal Code Chapter 1.13
(Administrative Citations), adding Chapter 1.14 (Administrative Penalties and Abatement),
adding Chapter 1.15 (Abatement of Properties, Buildings, and Conditions), adding Chapter
2.57 (Administrative Hearings Board), amending Section 9 .09 .130 (Enforcement) of Chapter
9.09 (Neglected Vacant Buildings), repealing Chapter 9.10 (Property Blight), repealing
Chapter 9.11 (Relocation Benefits for Displaced Tenants), amending Sections 9.20.190
(Penalties) and 9.20 .200 (Enforcement-Citation Authority) of Chapter 9.20 (Fire Prevention),
and repealing Title 15 (Abatement) and reserving that Title number for future use, all relating
to remedies and administrative enforcement of the Redding Municipal Code; waive the full
reading of the ordinance and authorize publication of a summary ordinance; and authorize
use of either a volunteer Administrative Hearing Board or a single Hearing Officer or both.
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Council Members Dickerson and Murray expressed concern regarding the three-person
Board and requested a more thorough discussion of what the qualifications of nominees
should be as well as the powers of the Board. Mr. Duvernay explained that offering the
ordinance would only create a shell for the process and would still allow for future creation
of a Board.
In response to Mayor Mathena's concern regarding due process, Administrative Assistant to
the City Manager Cherpeski advised that appeals of a Board decision would be given to the
Superior Court system which offers an additional format for a hearing, thereby providing
more than one hearing forum.
MOTION: Made by Council Member Murray, seconded by Council Member Stegall, to
defer the issue until the meeting of November 1, 2005, and directed staff to prepare a
supplemental report clarifying the criteria for selection of Administrative Board members.
The Vote: Unanimous Ayes
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PUBLIC COMMENT
(A-050-060)
Mayor Mathena advised that he attended the Shasta County Sheriffs Department
Preparedness at Shasta Dam and found it informative as well as reassuring regarding the
strength and stability of the Dam.
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257
(A-050-060 & C-070-01O)
Dorothy Robbins, Redding resident, expressed concerns regarding eminent domain
proceedings, but because it was late she said she would return at a future date. She added
that she has a web site at AmericanChristians.com.
(A-050-060 & S-070-285)
Dahl Phelps, Redding resident, stated that she attended the City Council meeting of October
4,2005, to report hazardous sidewalks and related that, to date, the area in question has not
been repaired.
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Assistant City Manager Perry advised that the area was slated for repair the previous week,
but due to the water main break on Eureka Way it was delayed. He assured her that the
sidewalk is schedule for repair tomorrow.
ADJOURNMENT
There being no further business, at the hour of 10:25 p.m., Mayor Mathena declared the
meeting adjourned.
APPROVED
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ATTEST:
&,,,,/;, ~'f
City Clerk
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10/18/2005