HomeMy WebLinkAboutMinutes - City Council - 2006-04-18
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City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress Avenue,
Redding, California
April 18, 2006 7:00 p.m.
The Pledge of Allegiance to the Flag was led by David Scott.
The meeting was called to order by Mayor Murray with the following Council Members
present: Dickerson, Mathena, Pohlmeyer and Stegall.
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The Invocation was offered by Police Chaplain Betty Harrison-Smith.
Also present were Interim City Manager Starman, Deputy City Manager Bachman, City
Attorney Duvernay, Development Services Director Hamilton, Electric Utility Director
Feider, City Engineer Tippen, Environmental Compliance Manager Oldham, City Clerk
Strohmayer, and Executive Assistant Stribley.
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CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of minutes: Regular and Special Meetings of April 4, 2006
Approval of Payroll and Accounts Payable Registers
(A-050-100-500)
It is recommended that Accounts Payable Register No. 19, check numbers 839403 through
839852 inclusive, in the amount of $4,246,860.48, for the period of April 1 ,2006, through
April 14, 2006; and Payroll Register No. 21 electronic deposit transaction numbers 183027
through 183790 and check numbers 529632 through 529802 inclusive, in the amount of
$2,171,869.62, for the period of March 25, 2006, through April 8, 2006, be approved.
TOTAL: $6,418,730.10
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Ordinance - Amending Redding Municipal Code Section 16.020.040(d)(1)(e) eliminating
exemption from the Traffic Impact Fee Program for certain surplus real property sold by the
Redding Redevelopment Agency
(T -080-400 & R-030)
It is the recommendation of the Interim City Manager that Ordinance No. 2364 be adopted,
an ordinance ofthe City Council ofthe City of Redding amending RMC Title 16, Chapter
16.20- Development Impact Fees by repealing Subsection 16.020 .040(D)( 1)( e)-Exemptions
and Credits relating to exemptions for the sale of surplus property by the Redding
Redevelopment Agency.
Resolution - Extending the time period for retention of Redevelopment Agency-owned
property at 657 Parkview Avenue and affirming the parcel for affordable housing
(R-030-100)
It is the recommendation of the Interim City Manager that Resolution No. 2006-53 be
adopted, a resolution of the City Council of the City of Redding, extending the time period
during which the Redevelopment Agency may retain property at 657 Parkview Avenue for
the development of affordable housing for persons and families oflow and moderate income.
Resolution - Approving Application and Execution of a Grant Agreement to the California
Department of Housing and Community Development for Building Equity and Growth in
Neighborhoods (BEGIN) Program
(G-100-170)
It is the recommendation of the Interim City Manager that Resolution No. 2006-54 be
adopted, a resolution of the City Council of the City of Redding authorizing submittal by the
City Manager of an application to the California Department of Housing and Community
Development (HCD) for grant funds in an amount up to $5W,000 through the Building
Equity and Growth in Neighborhoods Programs, and execution of a StaIldardAgreement for
same including any necessary amendments or documents related thereto.
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Status Report - Sports Complex Soccer Park
(P-050-690 & P-050-600-200)
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 April 2006.
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Resolution - Accepting and appropriating funds for twelve (12) grants from the Shasta
County Air Quality Management District for the Heavy-Duty Low-Emission Vehicle
Incentive Program
(G-100 & E-020-01O)
It is the recommendation of the Support Services Director that the City Council accept twelve
grants from the Shasta County Air Quality Management District through the Heavy-Duty
Low-Emission Vehicle. Incentive Program in a total amount of $103,347.
It is further recommended that Resolution No. 2006-55 be adopted, a resolution ofthe City
Council of the City of Redding approving and adopting the 33rd amendment to City Budget
Resolution No. 2005-77 accepting $103,347 in grant funds for emission control devices for
fiscal year 2005-06.
Accept Grant - United States Attorney's Office through Project Safe Neighborhoods for the
Shasta Anti-Gang Enforcement (SAGE) Unit
(G-100-070 & P-150-150)
It is the recommendation of the Police Chief that the City Council accept a grant from the
United States Attorney's Office in the amount of $70,000 to be shared with several agencies
participating in the Shasta Anti-Gang Enforcement (SAGE) Unit.
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Authorization of Service #06-101 Agreement - Mead and Hunt, Inc.
(A-090-100)
It is the recommendation of the Deputy City Manager that the City Council approve the
Authorization of Service #06-101 Agreement with Mead and Hunt, Inc. for architectural
services for the passenger terminal building expansion and improvements at Redding
Municipal Airport in an amount not -to-exceed $59,980.
Authorization of Service #06-01 Agreement - Coffman Associates
(A-090-020)
It is the recommendation of the Deputy City Manager that the City Council approve the
Authorization of Service #06-01 Agreement with Coffman Associates for preparation of an
environmental assessment for runway safety area improvements at Benton Airpark in the
amount of $146,648.
Authorize Submission of Six (6) Grant Appli~ations - Indian Gaming Local Community
Benefit Committee .
(G-100-170 & B-080-650-639)
It is the recommendation of the Deputy City Ma~ager that the City Council authorize
submission of six grant applications to the Indian Gaming Local Community Benefit
Committee for 1) South Bonnyview Road Widening, 2) Fire Station No. 1 building
modifications, 3) Flood water rescue equipment, 4) Backup aerial ladder truck, 5) South
Redding traffic safety project, and 6) Community clean-up project in the amount of$825 ,000
for mitigation impacts related to the Win River Casino.
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Award of Bid - Bid Schedule No. 3873, Redding Convention Center Storage Area Fire
Protection System
(B-050-020 & C-050-050)
It is the recommendation ofthe Development Services Director that Bid Schedule No. 3873
(Job No. 8302-04), Redding Convention Center Storage Area Fire Protection System be
awarded to MDS Engineering & Construction, Inc. in the amount of $105,721, and that an
additional $32,200 be approved for administration and inspection fees, and an additional
$10,500 be approved to provide a construction contingency fund for a total amount of
$148,421.
Resolution - Approving Freeway Agreement with Caltrans for Highway 44 from Liberty
Street to 0.2 miles west of Stillwater Creek
(S-050-100)
It is the recommendation of the Development Services Director that Resolution No. 2006-56
be adopted, a resolution of the City Council of the City of Redding authorizing the Mayor
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to execute the Freeway Agreement No. 02-SHA-44-KP LO .6/R6.6 (PM LO .4/R4.1) with the
State Department of Transportation (Caltrans) for Highway 44 from Liberty Street to 0.2
miles west of Stillwater Creek.
Resolution - Approving Engineer's Report, ordering the formation of territory known as Mill
Pond Lane Subdivision into Landscape Maintenance District "P" and levying annual
assessments for fiscal year 2006-07
(A-170-075-065)
It is the recommendation of the Development Services Director that Resolution No. 2006-57
be adopted, a resolution ofthe City Council of the City of Redding confirming the maps of
the assessment district, approving the Engineer's Report, ordering formation of Landscape
Maintenance District "P" (LMD "P") located in the Mill Pond Lane Subdivision in the
amount of $527.60 for each developable lot, and ordering the levy and collection of
assessments in LMD "P" for fiscal year 2006-07 pursuant to the Landscaping and Lighting
Act of 1972.
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Award of Bid - Bid Schedule No. 3899, construction and installation of Well No. 14
(B-050-020 & W-030-750)
It is the recommendation ofthe Development Services Director that Bid Schedule No. 3899
(Job No. 2178), construction and installation of Well No. 14 be awarded to Cal Electro, Inc.
in the amount of $729,586, that an additional $70,000 be approved for administration and
inspection fees, and an additional $75,000 be approved for a construction contingency fund,
for a total amount of $874,586.
MOTION: Made by Council Member Stegall, seconded by Council Member Mathena, that
all the foregoing items on the Consent Calendar be approved and adopted as follows:
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Dickerson, Pohlmeyer, Mathena, Stegall, and Murray
Council Members - None
Council Members - None
Council Members - None
Ordinance No. 2364 and Resolution Nos. 2006-53,2006-54,2006-55,2006- 56, and 2006- 57
are on file in the Offic~ of the CitL Clerk. _ _ _ _ _ _ _ _ _ _ _
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PUBLIC HEARING - Final Environmental Impact Statement and Environmental Impact
Report (EIS/EIR-I-00), Stillwater Business Park; and
RESOLUTION - Certifying and adopting same
(L-01O-075 & E-050-500)
The hour of 7 :00 p.m. having arrived, Mayor Murray opened the public hearing regarding
consideration of the Final Environmental Impact Statement and Environmental Impact
Report (EIS/EIR-I-00) prepared for the Stillwater Business Park Project consisting of
approximately 700 acres generally located east ofthe Redding Municipal Airport in the area
of Stillwater Creek, Rancho Road and Fig Tree Lane.
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 letters from the Butte Environmental Council, Michael
Goodyear, and Rick Clester were received opposing the project.
Development Services Director Hamilton related that the Stillwater Business Park consists
of700 acres, 349 of which could be developed for professional and industrial uses with the
remaining 296 acres reserved for open space and open space preserve (to protect vernal pools
and wetland features in the project). Sites will vary from 3 to 100 acres in size.
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Mr. Hamilton explained that a Statement of Overriding Considerations was necessary due to
anticipated air impacts during construction that would reach or slightly exceed regulated
thresholds for nitrous oxide. He emphasized that the air impacts would only occur during
construction.
Mr. Hamilton pointed out an additional impact would occur with construction of the Rancho
Road Bridge over Stillwater Creek which has the potential to raise the floodplain in the area
by 7.2 inches affecting surrounding properties.
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Mr. Hamilton recommended that the City Council adopt a resolution to certify and approve
the Stillwater Business Park Fi~al Environmental Impact Report (EIR), adopt the Mitig!ltion
Monitoring Program, make Findings of Significant Effects, approve a Statement of
Overriding Considerations pursuant to the California Environmental Impact Act (CEQA);
and adopt the Filial Environmental Impact Statement (EIS) and direct staff to prepare a
Record of Decision pursuant to the National Environmental Policy Act (NEP A); and appoint
the City Manager or his designee to act as the Federal Certifying Officer and authorize him
to sign necessary documents and/or amendments to comply with the Department of Housing
and Urban Development (HUD) regulations.
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Jim Zauher, President of the Economic Development Corporation (EDC) of Shasta County,
and Dave Scott, Chair of the Board of the Greater Redding Chamber of Commerce,
expressed support for the Stillwater Project citing positive economic impact on the
community and the lack of large commercial sites in the area. They urged the City Council
to approve the Project. '
Rick Clester, speaking on behalf of Bill Mitchell, explained that Mr. Mitchell owns 483 acres
just north of the proposed Project site and was of the understanding that the City would
purchase his property for the Project. However, in 2005, former City Man~ger Warren
informed Mr. Mitchell that the City did not have sufficient funding to purchase his property.
Mr. Clester said that because construction of the bridge at Stillwater Creek will raise the
floodplain and significantly impact the value of Mr. Mitchell's property, Mr. Mitchell has
the right to withhold approval necessary for construction to move forward. Mr. Clester
related that Mr. Mitchell is still willing to sell his property to the City, and they urged a delay
on approval of the E~$IS llntil these issues can be reviewed.
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Michael Goodyear, property owner in the area of the Stillwater Business Park Project, said
that originally he had supported the Project. However, he asserted that the City is not
considering the welfare of the Project's neighbors and he believed that elimination of the
proposed extension of Ram::ho Road to Deschutes Road will impact the area and lose a much
needed corridor for ingress and egress from the west.
Gary Self, Redding resident, questioned the City's assumption that jobs will be available
once ready building sites are established in the Stillwater Business Park decreasing
unemployment. He felt unemployment in Redding and the state as a whole was due to high
insurance, utility and freight costs, and state tax rates, which also fuel the departure of
companies fro~ California. He added that problems such as labor, education, and proximity
to suppliers and buyers could impact the financial viability of the Stillwater Business Park
and should be addressed prior to spending additional funds. He urged delayed of the
certification of the EIR/EIS until these issues were given further study.
Mayor Murray determined that no other in(jividual wished to address this matter and closed
the public hearing. .
In response to Mayor Murray, Environmental Compliance Manager Oldham explained that
some areas of the site were not s1,lrveyed and, therefore, assumptions were made regarding
endangered species that could possibly inhabit particular sections during various times of the
year. Mr. Oldham also explained that nesting habitat for migratory birds can be removed
during the non-nesting season to prevent future nesting and ensure unimpeded construction.
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Council Member Pohlmeyer refuted the notion that there was an uneducated and unskilled
work force in the community, pointing to the quality local schools that produce graduates
who attend the finest universities. He said that many times they are not able to return to the
community due to unavailable jobs. He added that the intent of the project has always been
to bring more and bett;er paying jobs to ~he community.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Dickerson
adopting Resolution No. 2006-58, a resolution of the City Council of the City of Redding,
certifying and approving the Environmental Impact Statement and Environmental Impact
Report EIS- EIR -1-00 prepared for the StiUwater Business Park Project, adopting the Final
Environmental Impact Report and the Mitigation and Monitoring Program, making Findings
of Significant Effects, and approving a Statement of Overriding Considerations; adopt the
Final Environmental Impact Statement; direct staff to prepare a Record of Decision pursuant
to the National Environmental Policy Act (NEPA); and appoint the City Manager to act as
the Federal Certifying Officer to sign necessary documents for compliance with the
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Department of Housing and Urban Development (HUD). The Vote:
A YES: Council Members - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2006-58 is on file in the Office ofthe City Clerk
PUBLIC HEARING - Annexation Application AN-I-Ol and amendments to the Redding
Municipal Airport Comprehensive Land Use Plan associated with the Stillwater Business
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RESOLUTION - General Plan Amendment GP A-2-0 1 for the Stillwater Business Park; and
ORDINANCE - Rezoning Application RZ-I-0 1 for the Stillwater Business Park
(G-030-0 lO/L-O 10-230/ A-150-258/ A-090-100/E-050-500)
The hour of 7:00 p.m. having arrived, Mayor Murray opened the public hearing regarding
General Plan Amendment GPA-2-01, Rezoning Application RZ-I-0l, Annexation
Application AN-I-0l, and amendments to the Redding Municipal Airport Comprehensive
Land Use Plan associated with the Stillwater Business Park consisting of approximately 700
acres generally located east ofthe Redding Municipal Airport in the area of Stillwater Creek,
Rancho Road and Fig Tree Lane.
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 letters from the Butte Environmental Council, Michael
Goodyear, and Rick Clester were received opposing the project.
Development Services Director Hamilton stated that General Plan Amendment Application
GPA-2-01 proposes to change the land use classifications of the Stillwater Business Park
from "General Industry," "Park," "Residential, 5 acres," and "Greenway" to "General I
Industry" (384 acres) and "Greenway" (337 acres). It would also eliminate a future extension
of Rancho Road east of the project.
Mr. Hamilton pointed out that the adjacent property (currently owned by Mr. Sanders) at the
north end of the Project map and earmarked for acquisition and annexation to the Project,
was identified as "Open Space" at the Planning Commission public hearing on April 11,
2006. However, after consideration of public comment received at that meeting, a change
was made to the designation identifying the area outside of the known map floodplain as
"General Industrial" which could be developed. He advised that the resolution and maps
before City Council tonight reflect that change. He noted that actual boundaries on the map
would be determined and finalized when subdivision/parcel maps were developed.
Deputy City Manager Bachman stated that although Attachment "K" (Stillwater Business
Park Annexation Map) of the Report to City Council includes all properties that could be
annexed to the Stillwater Business Park Project, it did not mean that all the properties would
be annexed. He stated there are two properties at the southern end of the map which are
residential and one of those property owners has already expressed opposition to the
annexation.
Mr. Hamilton recommended that the City Council make necessary findings, adopt a
resolution approving General Plan Amendment GPA-2-01, offer an ordinance for first
reading approving Rezoning Application RZ-I-0l, and waive the full reading, approve
Annexation Application AN-I-0l and forward it to the Shasta County Local Agency
Formation Commission (LAFCO); authorize an application to the Airports Land Use
Commission (ALUC) for amendments to the Redding Municipal Airport Comprehensive
Land Use Plan (CLUP) to apply land use designations consistent with General Plan
Amendment GP A-2-0 1 associated with the Stillwater Business Park. He pointed out that the
proposed resolution and ordinance would not be effective until a determination is made by
ALUC that GP A-2-0 1 is compatible with the CLUP or the CLUP is amended to be consistent
with the land use classifications of GPA-2-01.
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Rick Clester, speaking on behalf of Bill Mitchell, explained that Mr. Mitchell owns 483 acres
just north of the proposed Project site and was of the understanding that the City would
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purchase his property for the Project. Ifoweyer, in 2005, former City Manager Warren
informed Mr. Mitchell that the City did not have sufficient funding to purchase his property.
Mr. Clester said that because construction of the bridge at Stillwater Creek will raise the
floodplain and significantly impact the value of Mr. Mitchell's property, Mr. Mitchell has
the right to withhold approval necessary for construction to move forward. Mr. Clester
related that Mr. Mitchell is still willing to sell his property to the City, and urged a delay on
approval of the EIR/EIS until these issues can be reviewed.
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Michael Goodyear, property owner in the area of the Stillwater Business Park Project, said
that originally he had supported the Project. However, he asserted that the City is not
considering the welfare of the Project's neighbors and he believed that elimination of the
proposed extension of Rancho Road to Deschutes Road will impact the area and lose a much
needed corridor for ingress and egress from the west.
Mayor Murray determined that no other individual wished to address this matter and closed
the public hearing.
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MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
making findings that the Stillwater Business Park Project is within the scope of the Project
as defined in EIS/EIR-I-OO adopted this date by Resolution No. 2006-58 and that changes
or alternatives have been required in or incorporated into the Project which avoid or
substantially lessen the significant environmental effects identified in EIS/EIR-I-OO;
directing staff to forward Annexation Application AN-I-OI to the Shasta County Local
Agency Formation Commission (LAFCO); authorizing an application to the Shasta County
Airport Land Use ComlJlission (ALUC) for an amendment to the Redding Municipal Airport
Comprehensive Land Use Plan (CLUP) to apply land use designations consistent with
General Plan Amendment GPA-2-0I; adopting Resolution No. 2006-59, a resolution of the
City Council of the City of Redding, amending the General Plan Diagram of the City by
adopting General Plan Amendrn~nt GPA-2-01 changing the General Plan land use
cla~sifications for the Stillwater Business Park site from "General Industry," "Park,"
"Residential, 5 acres," and "Greenway" to "General Industry" (384 acres) and "Greenway"
(337 acres) and eliminating the future extension of Rancho Road east of the project site; all
changes to be effective upon determination by ALUC that GPA-2-01 is compatible with the
CLUP or amending the CLUP to be consistent with the land use classifications of GP A - 2-01.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
Council Members - None
Council Members - None
Council Members - None
Resolution No. 2006-59 is on file in the Office of the City Clerk.
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Council Member Pohlmeyer offered Ordinance No. 2365 for first reading, an ordinance of
the City Council of the City of Redding amending the Redding Municipal Code Zoning Map
by approving Rezoning Application RZ-I-OI rezoning certain areas of the Stillwater
Business Park from "OS" Open Space District, "GI-PD" General Industry District with
Planned Development Overlay District and "OS-PD" Open Space District with Planned
Development Overlay District ~o "GI-PD" General Industry District with Planned Overlay
Development District, "OS-PD" Open Space District with Planned Development Overlay
District, "OS" Open Space District, "HI" Heavy Industry District, and "RE" Residential
Estate District, and making findings that EIS/EIR-I-OO with mitigation and the subject
rezoning will no~ have a significant effect on the environment with the exception of
Overriding Findings made for unavoidable cumulative air quality impacts, that the Project
is compatible with the Redding General Plan, that the Project will not significantly alter
existing land form, that the Project is compatible with surrounding land use, and that the
Project is compatible with the Redding Municipal Code and as approved by the EIS/EIR -1-
00; waiving the full reading of the ordinance to be effective upon certification to the City
Clerk by the City Attorney that Resolution No. 2006-59 regarding General Plan Amendment
GPA-2-01 is legally effective.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall,
that the full reading of Ordinance No. 2365 be waived, that the City Attorney be instructed
to read the ordinance by title only. The Vote: Unanimous Ayes
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REQUEST FOR PROPOSALS - Allocation of Affordable Housing Funds received from
Lowe's
(G-030-01O)
Interim City Manager Stannan recalled that during the entitlement process to. allow
development of Lowe ' s new home improvement store (1200 East Cypress Avenue), Lowe's
agreed to contribute $1 million to the City for affordable housing as a mitigation fee.
Mr. Stannan recommended that the City Council direct staff to issue Requests for Proposals
(RFPs) to seek out creative ideas on how to best utilize the $1 million in affordable housing
funds. He also suggested that the Community Development Advisory Committee (CDAC)
be enlisted to make recommendations and/or review the RFPs.
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Jim Koenigsaecker, Executive Director for Habitat for Humanity Shasta Cascade, urged the
City Council to direct staff to move forward with the process.
Sandra Van Larsen, representing Independent Living Services of Northern California,
advised that she locates affordable housing for clients. She shared the difficulty of finding
housing for very-low income families and asked that they be included in the search for
appropriate programs.
In response to Council Member Pohlmeyer's comment that he favored stretching available
funds to create actual housing, Mr. Stannan explained that the expectation for the RFP
process is that because a quality development of any kind would exceed $1 million, the funds
be used to support or improve a project rather than fund it entirely.
Council Member Stegall suggested that the McConnell Foundation be contacted for
infonnation on their grant funding process which has produced some good results.
MOTION: Made by Council Member Dickerson, seconded by Council Member Stegall,
directing staff to issue a Request for Proposals to seek creative ideas on how to best utilize
$1 million in Affordable Housing Funds and to utilize the Community Development
Advisory Committee to assist in the process. The Vote: Unanimous Ayes
ACCEPT REPORT - Kosmont Regional Competitiveness Study and Marketing
Implementation Strategy for Stillwater Business Park
(E-050-500)
Interim City Manager Stannan recalled that at the regular meeting of December 4,2004, the
City Council authorized an agreement with Lee Kosmont Advisory Services to provide an
overview of the City's economic development strategy to detennine its competitivene$s in
the marketplace, focusing on development of the Stillwater Business Park.
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Mr. Stannan recommended that the City Council accept the Kosmont Regional
Competitiveness Study and Marketing Implementation Strategy for the Stillwater Business
Park.
Mayor Murray explained that although he would accept the Report, there were
implementation recommendations within the Report that he was not willing to approve at this
time.
Mr. Stannan related that a workshop is planned for mid-June to discuss the Stillwater
Business Park and implementation strategies will be discussed as well.
Doug Bennett, Redding resident, remarked that he had many reservations regarding
assumptions made in the Kosmont Report. He believed that problems such as
unemployment, education needs, and transportation were systemic and the Report did not
address those issues. He believed that it will not be possible for the City to compete with
international industrial markets for labor, utilities, and production and considered the
Stillwater Business Park a risky venture.
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Mayor Murray explained that the City would be specifically seeking companies that already
exist in California, were accustomed to working within California and its regulations, but
needed to expand from existing locations.
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MOTION: Made by Council Member Dickerson, seconded by Council Member Pohlmeyer,
accepting the "Stillwater Business Park Regional Competitiveness Study and Marketing
Implementation Strategy" by Lee Kosmont Advisory Services, but taking no action on the
implementation of said Report.
The Vote: Unanimous Ayes
AWARD REOUEST FOR PROPOSALS (RFP) No. 3900 to perform easement acquisition,
permitting, and design of the Stillwater 115/12kV Transmission Project; and
PROFESSIONAL SERVICES AGREEMENT - Power Engineers, Inc.
(B-050-100 & E-090-160-790)
Electric Utility Director Feider recalled that Redding Electric Utility (RED) performed a
long-term transmission study which identified the need for a third 115KV transmission line
from the City's existing Western Area Power Administration (Western) 230/115KV
Interconnection at the Airport Substation to the East Redding Substation, a distance of
approximately 9 miles. He pointed out that based on the City's present peak load and
projected load growth, the line will be needed in 10 to 15 years even if the Stillwater
Business Park is not constructed.
Mr. Feider recommended that the City Council award the Request for Proposals No. 3900
to Power Engineers, Inc. in the amount of $1,004,017 to perform easement acquisition,
permitting, surveying, and design work for the Stillwater 115/12KV electric transmission line
and that the Mayor be authorized to execute a Professional Services Agreement for same.
He also recommended that the City Council authorize the City Manager to approve project
change orders up to an aggregate not-to-exceed amount of $150,600.
In response to Council Member Stegall, Mr. Feider explained that the City Council's
decision on this project could be delayed until a special meeting is held regarding Stillwater
Business Park, however, the "go-live" date will slide from December 2008 to a date
uncertain. He pointed out that this is only the design work for the project and that it typically
takes about three years or more to obtain necessary rights-of-way and added that the
construction process is not under consideration at this time.
Deputy City Manager Bachman pointed out that because the work will have to be done at
some point, costs will only increase as time passes.
MOTION: Made by Council Member Mathena, seconded by Council Member Dickerson,
awarding the Request for Proposals No. 3900 to Power Engineers, Inc. in the amount of
$1,004,017 to perform easement acquisition, permitting, surveying, and design work for the
Stillwater 115/12KV electric transmission line; authorizing the Mayor to execute a
Professional Services Agreement for same; and authorizing the City Manager to approve
project change orders up to an aggregate not-to-exceed total of $150,600.
The Vote: Unanimous Ayes
RESOLUTION - Authorizing the Use of Natural Gas Financial Tools for Multiple Years to
Mitigate Price Risks
(E-120-058)
Electric Utility Director Feider advised that Redding Electric Utility (RED) has been
researching new methods of risk reduction in both electric and natural gas commodity
markets. He reca~led that since the 1990's, the City Council has approved various physical
and financial tools to allow REU to minimize physical delivery and price risks associated
with REU' s generation and gas transportation portfolios and this would be an additional tool
for that portfolio.
Mr. Feider stated that financial "tools" include (but not limited to) put/call options, futures
contracts, and basis contracts. He related the following guidelines developed for this
program: 1) Any financial tool must be related to an underlying physical natural gas
commodity holding, or future physical natural gas commodity requirements; 2) Financial
tools may not be utilized for speculative purposes, 3) REU will utilize financial tools to
minimize the price risk of natural gas caused by market volatility and maximize the value of
its physical natural gas commodity holdings through structured purchases and sales of such
financial tools, 4) Existing commodity purchase/term authorization limits will not be
exceeded, and 5) REU will not purchase and hold more than $200,000 (aggregate) in option
premiums at anyone time.
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Mr. Feider recommended adoption of a resolution authorizing REU to utilize financial tools
to mitigate the price risks associated with the purchase/sale of natural gas within approved
guidelines.
MOTION: Made by Council Member Dickerson, seconded by Council Member Pohlmeyer,
adopting Resolution No. 2006-60, a resolution of the City Council of the City of Redding
authorizing the Redding Electric Utility Director or his designees to utilize financial tools
to mitigate the price risks associated with the purchase/sale of natural gas within the
approved guidelines. The Vote:
AYES: Council Members - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
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Resolution No. 2006-60 is on file in the Office of the City Clerk
RESOLUTION - Appropriating Water and Wastewater Utility funds for office space for
Redding Municipal Utilities Corporation Yard
(B-130-070 & A-050-165)
City Engineer Tippin related that the Redding Municipal Utilities proposes to construct 2,217
square feet of office space at the Corporation Yard. Final plans are complete and the
estimated cost is $650,000 which equates to approximately $295 per square foot. He pointed
out, however, that the amount set aside for the building was $600,000 and an additional
$180,000 is needed to complete the structure due to design, construction management,
contingency funds and permitting.
Mr. Tippin recommended that a resolution be adopted appropriating $180,000 for the
construction shortfall. .
Mayor Murray expressed opposition to constructing an office area that had no sinks or
bathrooms. He believed that $778,158 or $350 per square foot was unreasonable for a small
building with no plumbing. He suggested that the City's internal processing requirements
for constructing a small building be reviewed and simplified in order to reduce costs and
encourage more companies to participate in the bid process. He pointed out that while Mr.
Tippin has done an excellent job on this project and met with contractors to make some value
engineering changes, he had problems with the current process. As a result, he could not
support the current proposal.
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MOTION: Made by Council Member Dickerson, seconded by Council Member Pohlmeyer,
adopting Resolution No. 2006-61, a resolution ofthe City Council ofthe City of Redding,
approving and adopting the 28th amendment to City Budget Resolution No. 2005-77
appropriating $180,000 for the Corporation Yard Expansion Project for fiscal year 2005-06.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Dickerson, Mathena, Pohlmeyer, and Stegall
Council Members - Murray
Council Members - None
Council Members - None
Resolution No. 2006-61 is on file in the Office ofthe City Clerk
ADJOURNMENT
There being no further business, at the hour of 8:37 p.m., Mayor Murray declared the
meeting adjourned.
APPROVED
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ATTEST:
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City Clerk ( . ~ 1
4/18/2006