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HomeMy WebLinkAboutMinutes - City Council - 2006-02-07 28 City Council, Regular Meeting Civic Center Council Chambers 777 Cypress Avenue, Redding, California February 7,2006 7:00 p.m. The Pledge of Allegiance to the Flag was led by City Council Member Stegall. The Invocation was offered by Police Chaplain Debbie Ivey. The meeting was called to order by Mayor Murray with the following Council Members present: Dickerson, Mathena, Pohlmeyer and Stegall. I Also present were City Manager Warren, Assistant City Manager Starman, City Attorney Duvernay, Electric Utility Director Feider, Deputy City Manager Bachman, Development Services Director Hamilton, Management Assistant to the City Manager Cherpeski, 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 - Special Meetings of December 6,2006, December 9, 2005, and December 14,2005 Approval of Payroll and Accounts Payable Registers (A-050-100-500) It is recommended that Accounts Payable Register No. 14, check numbers 837134 through 837598 inclusive, in the amount of $10,430,477.20, for the period of January 17,2006, through January 31,2006; Payroll Register No. 15, electronic deposit transaction numbers 178342 through 179090 and check numbers 528348 through 528542 inclusive, in the amount of $2,235,027.57, for the period ofJanuary 1,2006, through January 14,2006; and Payroll Register No. 16, electronic deposit transaction numbers 179112 through 179867 and check numbers 528575 through 528751 inclusive, in the amount of $2,268,773.05, for the period of January 15,2006, through January 28, 2006, be approved. TOTAL: $14,934,277.82 I Treasurer's Report - December 2005 (A-050-100-600) Total Treasurer's Accountability $140,725,085.42 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities $226,423,444.77 ACR133 Report and Cash Reconciliation (F-205-095-650) It is the recommendation ofthe Deputy City Manager that the ACR133 Report and the Proof of Cash Reconciliation for December 2005 be accepted. Resolution - Declaring March 10, 2006, as "Community Tree Planting Day," otherwise known as "Arbor Day", and March 6 - 10,2006, as "Arbor Week" in the City of Redding (A-050-060-600 & A-050-22Q-075) It is the recommendation of the Support Services Director that Resolution No. 2006-13 be I adopted, a resolution of the City Council of the City of Redding, declaring March 10,2006, as "Community Tree Planting Day," otherwise known as "Arbor Day," and March 6 through March 10,2006, as "Arbor Week." Master Agreement No. 42595 - U.S. Communities Government Purchasing Alliance (GPA)/Los Angeles County (B-050-100) It is the recommendation of the Support Services Director that the City Council authorize staff to execute an Agreement with the U.S. Communities Government Purchasing Alliance (GPA)/Los Angeles County to purchase office and stationery supplies and equipment from Office Depot, effective through January 1,2010, with an option for two additional 12-month periods. 2/7 /2006 I I I 29 Resolution - Approving Amendment No.2 to the Modesto-Santa Clara-Redding (M-S-R) Public Power Agency Joint Powers Agreement (E-120-500) It is the recommendation of the Electric Utility Director that Resolution No. 2006-14 be adopted, a resolution of the City Council of the City of Redding approving and authorizing the City Manager or his designee to execute Amendment No.2 to the Modesto-Santa Clara- Redding Public Power Agency Joint Powers Agreement to extend the term of the joint action agency indefinitely until dissolved by unanimous action of the three members. Resolution - Authorizing agents to work with the State Office of Emergency Services re flood disaster assistance (P-150-050) It is the recommendation of the Fire Chief that Resolution No. 2006-15 be adopted, a resolution of the City Council of the City of Redding authorizing Finance Officer Strong, Assistant Finance Officer Maxwell, and Senior Accountant Haddad to file application with the State of Califomia Office of Emergency Services relative to receiving assistance from the flood disaster of December 2005. Resolution - Adopting City Council Policy No. 424, pertaining to Penalties and Late Fees (A-050-060-555) It is the recommendation of the Deputy City Manager that Resolution No. 2005-16 be adopted, a resolution ofthe City Council oft~e City of Redding adopting City Council Policy No. 424-Pena~ties and Late Charges, related to the allocation of penalties and late charges from City cash and pther sources. Notice of Completion - B~d Schedule No. 3779, Fire Station No.8 (B-050-020 & C-050-275-080) . It is the recommendation of the Development Services Director that Bid Schedule No. 3779 (Job No. 2200), Fire Station No.8 awarded to Gifford Construction be accepted as satisfactorily completed and that t4e City Clerk be authorized to file a Notice of Completion with the Shasta ~ounty Recorder. Final price was $2,380,952.95. Consultant Services Agreement - Willdan Engineering Corporation (S-060-l50-135) It is the recommendation of the Development Services Director that the City Council . authorize the Mayor to execute a Consultant Services Agreement with Willdan Engineering Corporation for the Churn Creek Storm Water Detention Feasibility Study and watershed study in an amount not -to-~xceed $169,877. Award of Bid - Bid Schedule No. 3862, Redding Municipal Airport Security Fencing (B-050-020 & A-090-l00) It is the reco~end,ation ofthe Development Services Director that Bid Schedule No. 3862 (Job No. 2206), Redding Municipal Airport Security Fencing be awarded to Pisor Fence Division, Inc. in the amount of $213 ,550, and an additional $20,000 be approved for administration and inspections fee, and an additional $21,355 for a construction contingency fund for a total amount of $254,905. Sole Source Professional Services Agreement - Carollo Engineers (W-020) . It is the recommendation of the Development Services Director that the City Council authorize the Mayor to execute a Sole Source Professional Services Agreement with Carollo Engineers to perform studies for the wastewater collection system at the Mal)' 'Street Lift Station sewer basin in an amount not -to-exceed $125,000. Final Map and Subdivision Agreement - Galaxy Way Subdivision (S-101-075) It is the recommendation ofthe Development Services Director that the City Council approve the Final Map for the Galaxy Way Subdivision (S-7-04), located at the westerly end of Galaxy Way, by Meadow Trail LLC, that the Mayor be authorized to execute the Subdivision Agreement for same, and that the City Clerk be instructed to file the map with the Shasta County Recorder. 2/7/2006 30 Final Map and Subdivision Agreement - Clover Acres Subdivision Unit 2 (S-101-069) It is the recommendation of the Development Services Director that the City Council approve the Final Map for the Clover Acres Subdivision Unit 2 (S-20-03), located south of Forest Hills Drive at the south end ofWimbledon Drive, by Ochoa & Shehan, Inc., that the Mayor be authorized to execute the Subdivision Agreement, and that the City Clerk be instructed to file the map with the Shasta County Recorder. Final Map and Improvements - Vista Del Monte Subdivision; and Resolution - Accepting streets for maintenance and operation (S-101-080 & S-070-230) I It is the recommendation of the Development Services Director that the City Council approve the Final Map for the Vista Del Monte Subdivision (S-14-04) located at the south end of Vista Del Rio, by Wallingford Construction, that the City Clerk be instructed to file the final map with the Shasta County Recorder, and that the improvements be accepted as satisfactorily completed. It is further recommended that Resolution No. 2006-17 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation the streets in the Vista Del Monte Subdivision. Resolution - Proclaiming February 2006, as "Spay & Neuter Month" and February 28, 2006, as "Spay Day" (A-050-060-600 & A-130-100) It is the recommendation of the City Clerk that Resolution No. 2006-18 be adopted, a resolution of the City Council of the City of Redding Proclaiming February 2006, as "Spay & Neuter Month" and February 28, 2006, as "Spay Day" in the City, increasing the spay/neuter voucher from $30 to $40 for the month of February. MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. The Vote: AYES: Council Members - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - None I Resolution Nos. 2006-13, 2006-14, 2006-15, 2006-16, 2006-17, and 2006-18 are on file in the Office of the City Clerk. REAPPOINTMENTS - Community Services Advisory Commission (B-080-128) MOTION: Made by Council Member Mathena, seconded by Council Member Dickerson, reappointing DeAnne Parker, Leona McCoach, and Jason Waybright to the Community Services Advisory Commission for four-year terms expiring January 1,2010. The Vote: Unanimous Ayes APPOINTMENTS - Administrative Hearing Board (B-080-050) MOTION: Made by Council Member Mathena, seconded by Council Member Stegall, appointing Max Ruffcorn, Jean Blankenship, and Wes Reynolds to the newly-enacted Administrative Hearing Board for staggered terms of two-years expiring February 1, 2008, three-years expiring February 1, 2009, and four-years expiring February 1, 2010, respectively. The Vote: Unanimous Ayes I FINAL REPORT - California Horse Park Committee (E-050) Assistant City Manager Starman recalled that the City Council appointed Gary Brickwood, Richard Downs, Ginne Mistal, Mike Quinn, and Dave Scott to serve on the California Horse Park Ad-Hoc Committee (Park) on July 5, 2005, to evaluate the feasibility of constructing an equestrian facility at the Gore Ranch. The City Council asked the committee to answer five questions: 2/7 /2006 31 I 1. Are the revenues to t1}e City from hotel and sales tax adequate to cover the anticipated debt service and how the City will track these revenues? 2. Will the guarantee from the McConnell Foundation regarding the assessment of risk to the City be an adequate backup? 3. Will there be enough revenue to pay for services provided by the City (including but not limited to police, fj.re, and street maintenance)? 4. Will the City's participation in the Horse Park jeopardize the financial condition or levels of s,ervice of the City in any way? 5. Is the propost:d operational and management structure of the Horse Park one that lends itself to ~eing successful? I Mr. Starman outlined the original McConnell Foundation (McConnell) proposal to the City and the County ofS~asta (County) for development ofthe Park, stating that the potential cost of the project could be as great as $190 million. The financial proposal included McConnell donating a 1,000 acre piece of property (Gore Ranch) with an estimated value of$15 million with no reimbursement required. Further, McCo~ell would furnish a grant in the amount of $30 million to parti~lly fu,nd construction of the project with no expectation of reimbursement for those funds. The City and County would invest a total of $7 million to the project and an adpitional $23 million would be provided through a bond issue with McConnell guaranteeing the bond debt service payments. McConnell would place a construction cap of $85 million on the project, excluding the $15 million for the land, but would expec:t repayment (interest free) from the City and the County of any amount over $60 million up to $85 million. Mr. Starman added that McConnell had placed a stipulation that funding from private investors and other agencies would not be permitted, but fee waiver amounts and assistance with infrastructure may be considered. The proposal indicates that City and County fun~ing would be recaptured through increased sales tax and transient occupancy tax (TOT) reven~es and a metric system could be developed to measure out-of- town visitors to the Horse'Park (possibly zip codes) attaching a value to those numbers to determine how much sales tax and TOT revenue out-of-town visitors generate (value generation). Further, McConnell proposed that if value generation did not cover the debt service, McConnell would reimburse the debt service; and if the value generation exceeded the amount necessary to provide debt service for the bonds, the City and County would reimburse M~Cqnnell for expenses. Mr. Starman said that McConnell expects reimbursement for any amount provided to guarantee debt service, and construction costs over $60 million and up to $80million. Once McConnell has been reimbursed as described, the value generation wil~ be split with 50 % going to McConnell and 50 % to be divided equally between the City and the County in perpetuity. Mr. Starmap. added that the Shasta County Board of Supervisors (Board) considered the matter earlier today and advised that it was the consensus of the Board to support the City if Council deci~ed to qIove forward with the project, and he added that the Board also appointed two Supervisors to continue me~ting with McConnell regarding this project. Mr. Starman recommended that the City Council accept the Report from the California Horse Park Ad-Hoc Coqunittee. I Mike Quinn, representing the Horse Park Committee, stateed that a misconception exists in the community that the Horse Park will benefit only those in the horse and cattle industry. He added that many other types of events could be held at this type of facility such as concerts, religious events, trade shows, and much more. In addition to the benefits of moving forward with the project, Mr. Quinn said that the City and County would have no obligations for the day-to-day operation of the Park and Park losses, if any, would be the responsibility of McConnell. He asserted that the Park would be a new source of revenue because events held at the facility would ~ot be replicated at other City facilities and would therefore, supplement the current tourism budget. He suggested that the Redding Rodeo Association, Asphalt Cowboys, and rodeo grounds could be moved to the new Horse Park facility freeing up the current location for sc:tle or lease. The open space created by the facility will allow attainment of per capita parks and open space goals as well as addition of trails and connecting trails. Mr. Quinn related that the Committee believes the Horse Park will generate approximately 1,100 direct and indirect jobs in the surrounding area. He said the Committee found no overriding negative aspect to the project during its review and recommends that the Horse Park project move forward. Bruce Alexander, representing the Redding Rodeo Association, urged the City Council to move forward with the Project and echoed the benefits presented in the Report. 2/7 /2006 32 Tom Spade, representing the Asphalt Cowboys, urged the City Council to move forward with the project. He envisioned the Project as a venue in which to showcase the Redding community. He believed that it was a once-in-a-lifetime opportunity for the community to build a $100 million facility for 7 % of that amount, and he pointed out that if it fails to turn a profit, the City and the County would not have any further financial obligations. Mr. Spade there were many ways to mitigate the $7 million investment. Mike Van Bockern, representing Westwood Manor residents, expressed concern regarding contractual indebtedness by the taxpayers to the McConnell Foundation upwards of $65 million. He questioned what would happen ifthe Horse Park did not live up to expectations and the methodology in the repayment equation. He asked who would determine the actual sales tax and TOT revenue generated by the Park and what amount would be paid to McConnell. He questioned generation of 1,100 jobs citing the Park's Pro-Forma Report wherein only 16 full-time jobs were listed. He added that Westwood Manor property owners (who share a fence line with the proposed project) have repeatedly asked McConnell for an opportunity to discuss the project, but McConnell has not yet agreed to meet. I John Steiner, Redding business owner, related that he has attended all the Horse Park Committee meetings, and he conducted personal research online and discovered that the Kentucky Horse Park was recently awarded the W orId Equestrian Games event which is estimated to generate $100 million in increased revenue to the state of Kentucky for a two- week period. He believed with that type of potential, the Horse Park could be a viable revenue producer for the community. Gregg Gardiner, Redding business owner, advised that he had a tourism industry background (he published 10 1 Things to Do in Hawaii) and that the key to such a project is how many outside people will come, how long will they stay, and how much will they spend per day while they are here. He believed that the Horse Park project is a great opportunity. Steve Concepcion, Redding resident, stated that he attended many of the Horse Park Committee meetings and believed that the Committee worked hard to prepare the Report and wished more citizens had attended the meetings to provide input. I Council Member Dickerson supported the project and believed it would be beneficial to the community as a whole. He felt the only inhibitor, at this time, was how to fund the project. He pointed out that the Park would be an excellent site for relocating the rodeo grounds, fearing that failure to relocate the event may spell its demise. He added that relocation ofthe rodeo grounds would probably exceed $7 million. Council Member Pohlmeyer thanked the members of the Horse Park Committee for its hard work and excellent report. He believed the project would was exciting and could bring much to the community. However, he voiced the following concerns: 3. 4. The level of financial constraints imposed by other projects; The level of nexus of the project to the City, such as relocation of the Rodeo Grounds and the possibility of having a covered event facility that reduces the strain on the existing Convention Center which is limited by its size and traffic and safety issues. The projected number of non-horse related events; Research to identify funds that the City could commit on an ongoing basis for debt service for 20 to 25 years and City participation through ownership interest in some assets of the project; The feasibility of phased construction; The number and success rate of similar facilities on the west coast. I 1. 2. 5. 6. Council Member Stegall recalled that she has always believed that the Horse Park is a great project, but she maintained concerns regarding funding. She did not believe that the proposed $7 million investment by the City would be recouped and questioned what other projects would be set aside in order to commit $7 million to the Park. She strongly believed that the Redding Rancheria and other interested individuals and agencies should be allowed to contribute funds to the Horse Park project, and she asked for specifics from Shasta County on its plan to assist with the project. She added that it was mentioned that the project could be constructed without endangering other projects or impacting the City's General Fund and asked for more information on how that could be accomplished. She expressed willingness to continue negotiations with McConnell, but did not believe financial commitments should be made at this time. 2/7 /2006 33 Council Member Mathena did not recall discussions regarding the elimination of the Redding Rodeo or its grounds. He stated that it was understandable that the business community would support the project but he was not comfortable discussing the project at this time without including a majority of the community. He preferred that discussion of this matter be deferred until the meeting of February 13,2006. He expressed concern regarding the Park's ability to pay its own way and he was not comfortable encumbering 40 years of sales tax or TOT revenues to fund the project. I Mayor Murray believed that Council should not become entrenched in the funding formulas and the minutia of the project but should determine if the community supports additional negotiations to bring the Horse Park to fruition. He believed the Horse Park would be a tremendous asset to the community and asked that staff be directed to develop funding options that do not impact the General Fund. He recommended that the City Council make a concep~al decision to either move fprward with the project at the February 13th meeting or decline the project outright. MOTION: Made by Council Member Dickerson, seconded by Council Member Stegall, accepting the report from the California Horse Park Ad-Hoc Committee. The Vote: Unanimous Ayes UPDATE ON MAJOR PROJECTS - New Library (A-050-080 & L-050) Management Assistant to the City Manager Cherpeski advised that the New Library is. scheduled for completion in December 2006, and should open in February 2007. He advised that local teens will be asked to assist in selection of furniture for the Teen Area in the Library, and he related that meetings with the County of Shasta, the Library Foundation, and City Council liaisons included numerous discussions regarding governance of the Library. He said work will continue until a proposal is solidified and can be brought for consideration to the City Council. I City Manager Warren added that part of the proposal will entail the City funding an additional $170,000 annually, provided the County also funds an additional $170,000 annually for extended operation; it is anticipated that the Library will be open at least 40 hours . 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 was 1.5 %, or $587,627 below projections. Operating revenue after energy costs was $1,846,279 or 12.5% above expectations. The total cost of electricity through December 2005 was $8,321,853 or 22.0 % above projections. The Utility's net operating results through December was $1,496,754 above projections. Mr. Feider recalled that the rate adjustment approved by the City Council last year was postponed in January until the end of spring, however, he believed it might be possible to defer the rate adjustment until after this summer. I Mr. Feider related that the President's Federal Budget did not include any items that might affect the federal power and marketing program, which includes Shasta Dam and the other dams in the Central Valley Project and provides Redding with 30% of its power. He stated that a proposal to pass the costs for security at Shasta and Folsom Dams to water and power customers is afoot and REU will continue to monitor that proposal and keep the City Council apprized. In response to Council Member Mathena, Mr. Feider advised that Calpine entered into bankruptcy a few weeks ago and several Northern California Power Agency (NCPA) members that contract with Calpine for power are concerned that Calpine will attempt to negate the contf'.lc~s. He added that REU does not have a contract with Calpine. Mr. Feider recommended that the City Council accept the Electric Utility's Monthly Financial Report for December 2005. 2/7 /2006 34 Council Member Pohlmeyer thanked REU for its hard work and attempts to curb rate increases for the community. It was the consensus of the City Council to accept the Electric Utility's Monthly Financial Report for December 2005. ORDINANCE - Amending Redding Municipal Code Chapter 6.14 - Card Rooms (L-070-030) Police Chief Moty advised that the proposed changes to the Card Room Ordinance will amend Card Room regulations to update, improve, and confonn it to current business practices. He pointed out that the California Department of Justice Division of Gambling I Control has reviewed and approved the proposed changes. Chief Moty recommended that the City Council amend Redding Municipal Code Chapter 6.12 Card Rooms amend Section 6.14.100, 6.14.120 and 6.14.130 relating to card rooms; offer the ordinance for first reading by title only and waive the full reading. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall, approving amendments to Redding Municipal Code Chapter 6.12 - Card Rooms amending Section 6.14.100, 6.14.120 and 6.14.130 relating to regulation of card rooms. The Vote: Unanimous Ayes Council Member Pohlmeyer offered Ordinance No. 2358 for first reading, an ordinance of the City Council of the City of Redding amending Redding Municipal Code (RMC) Chapter 6.14 - Card Rooms amending Section 6.14.100, 6.14.120 and 6.14.130 relating to regulation of card rooms. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall, that the full reading of Ordinance No. 2358 be waived and that the City Attorney be instructed to read the ordinance by title only. The Vote: Unanimous Ayes CITY COUNCIL ORAL REPORT - Reimbursed Attendance at Conferences/Meetings (A-050-060) City Attorney Duvernay advised that Assembly Bill 1234, which became effective January 2006, requires elected officials attending conferences and/or meetings and receiving some fonn of personal expense reimbursement (such as mileage or meals) from the City must provide a public report. I Council Member Mathena advised that he attended a Sacramento Division League of California Cities meeting in Chico on February 3, 2006. Council Member Stegall advised she attended a Northern California Power Association Strategic Planning Workshop in Sacramento on January 29, 2006. ADJOURNMENT There being no further business, at the hour of 8:47 p.m., Mayor Murray declared the meeting adjourned. APPROVED ATTEST: I c~~t1 2/7 /2006