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HomeMy WebLinkAboutMinutes - City Council - 2010-02-22 - Special Meeting I I I 53 City Council, Special Meeting Civic Center Council Chambers 777 Cypress Avenue Redding, California February 22,2010 5:15 p.m. The meeting was called to order by Mayor Jones with the following Council Members present: Bosetti, Dickerson, McArthur, and Stegall. Also present were City Manager Starman, Assistant City Manager Tippin, City Attorney Duvernay, Community Services Director Niemer, Deputy City Clerk Mize, and Executive Assistant Stockwell At the hour of6:25 p.m., Mayor Jones convened the Special Meeting of the Redding City Council for a joint meeting with the Redding Municipal Library Board. SHASTA PUBLIC LIBRARIES OPERATIONAL AND ADMINISTRATIVE AGREEMENT [L-050/L-050-0 I 0] Community Services Director Niemer acknowledged Library Systems & Services, Inc.(LSSI), Vice President, Bob Windrow, LSSI Vice President West Coast operations, Mark Smith, and Shasta Public Libraries (SPL) Director, Jan Erickson, as present and available for Board/Council questions and/or comments. Ms. Niemer recalled that at the special meeting of January 25, 2010, the Board/Council authorized staff to negotiate a new agreement with LSSI for the operation and administration of the SPL as recommended by Shasta Public Libraries Citizens Advisory Committee, City of Anderson, County of Shasta, and staff. She commented on the overall success of the SPL under the direction of LSSI as evidenced by the 2009 Annual Activity Report. She stated that with Bob Windrow's assistance, the contract language has been updated to reflect the experience of the last three years, staffing and annual reporting requirements, and new rates. Ms. Niemer added that the proposed agreement extends most of the current service parameters and includes the Strategic Plan which sets the performance metric for planning and evaluating library services. She pointed out that the term of the proposed agreement is for three years with extensions upon the mutual agreement of the parties with an increased contract rate of 2.6% for fiscal year 2010-11 and no rate increases for fiscal years 2011-12 and 2012-13. Ms. Niemer recommended that the Board and Council approve the proposed agreement with LSSI for the operation and administration of the SPL as presented. Jim Cevagioli, President of Friends of the Library, Susan Cresto Baker, President of the Shasta Library Foundation, and Peggy O'Lea, Executive Director ofthe Library Foundation, spoke in support of a renewed contract with LSSI asserting outsourcing ofthe administration and operations of the SPL has worked well for the community. MOTION: Made by Board Member/Council Member McArthur, seconded by Board Member/Council Member Stegall approving the agreement with Library Systems and Services, Inc., for the operation and administration of the Shasta Public Libraries. The Vote: Unanimous Ayes ADJOURNMENT There being no further business, at the hour of 6:36 p.m., meeting ofthe Redding City Council adjourned. r Jones declared the Special ATTEST: ~~~ Deputy CIty Clerk 02/22/2010 I I I 54 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California February 22,2010 5:15 p.m. The meeting was called to order by Mayor Jones with the following Council Members present: Bosetti, Dickerson, McArthur, and Stegall. Also present were City Manager Starman, City Attorney Duvernay, Assistant City Manager Tippin, Assistant to City Manager Clark, Redevelopment Manager Thompson, Senior Redevelopment Project Coordinator Haddox, Assistant Redevelopment Project Coordinator Rudolph, Housing Specialist Christ, Deputy City Clerk Mize, and Executive Assistant Tipton. At the hour of6:37 p.m., Mayor Jones convened the Special Meeting of the Redding City Council for a joint meeting with the Redding Redevelopment Agency. PROPOSED BE WISE! DEFERRED LOAN PROGRAM POLICY AND ASSOCIATED BUDGET AMENDMENT AND RESOLUTION MAKING THE REQUIRED FINDINGS [R-030-1 00-515/R-030-1 00/ R-030-075-040] Assistant City Manager Tippin provided an overview of the Report to City Council (Council) and Redding Redevelopment Agency (Agency) dated February 9,2010, incorporated herein by reference, relative to the proposed Be WISE! Deferred Loan Program Policy. Mr. Tippin noted that in late 2009, the Shasta Builders' Exchange (Exchange) proposed that the City consider a list of ideas (dubbed the "Radical lOin 2K 10") that the Exchange believed might be beneficial in stimulating the local economy during the current economic recession. Subsequently, an ad hoc committee met several times to discuss the ideas and, in January 2010, the Council conducted a public workshop on the same. Following the workshop, staff was directed to further develop several of the concepts for possible implementation. One of the ideas, a pilot rehabilitation loan program to assist up-to- moderate income homeowners, was directed to Redevelopment staff as the Agency's Low- and Moderate- Income Housing Fund (LMIHF) was identified as the most likely funding source for the activity. Mr. Tippin explained that staff has drafted the Be WISE! Program (Program) Policy and Procedures. WISE is an acronym standing for Weathertight, Improved, Sustainable, and Efficient, all terms that are descriptive of the focus of the proposed pilot Program. As proposed, the Program provides a deferred payment loan for income-eligible homeowners desiring to improve their home's energy efficiency. Eligible homeowners must have an annual household income between 81 % and 120% of the current area median, or between $44,651 and $66,950 based on a family of four. The maximum loan is $25,000 with a maximum term of 15 years at one percent (1 %) interest. Repayment of both principal and interest is deferred for the term of the loan, or earlier, upon sale of the home, or ifthe home is no longer the principal residence of the loan recipient. A deed of trust will be recorded against the property securing the Agency for the amount of the loan. Mr. Tippin noted that as the Program is written, the borrowers may choose to utilize proceeds ofthe Program under two options. Option 1 consists of undertaking improvement work such as window replacement; appliance upgrades; enhanced insulation; replacement of heating and air conditioning units; replacement ofwater heaters; and installation of solar equipment, all focused on improving the home's energy efficiency. Mr. Tippin explained that it is anticipated that the homeowner would utilize a variety of subcontractors in the community to accomplish the specific improvements selected, with staff assisting in creating a scope of work and with contractor selection. Option 2 would be to use the loan to pay for costs associated with participating in the Redding Electric Utility's (REU) Home Performance Program (HPP). Mr. Tippin explained that the HPP is a specialized program designed to provide participants with a professional evaluation of their home's current energy usage and to assist with costs related to addressing inefficiencies relative to the home's attic thermal envelope such as: air sealing of the home's ceiling top plate; improving attic insulation; replacement of older heating and air conditioning units; and repair/sealing of all duct systems. Currently, the HPP is only 02/22/2010 55 available for homeowners whose incomes are at or below 80% of the current area median income. Mr. Tippin noted that the proposed Program would allow homeowners with income up to 120% of the area median to participate. RED has entered into service contracts with a number of local contractors and subcontractors who have completed specialized training through the Exchange and who would perform all HPP work. Mr. Tippin explained that because it is proposed that the Program be made available throughout the city limits, California Health and Safety Code S 33334.2(g) requires that resolutions be adopted by both the City and the Agency finding that use of the LMIHF for the stated purpose will be of benefit to the project area from which the funds are derived. He noted that in this case, the SHASTEC Project Area does not have a large number of residential units due to its location along the primarily commercial and industrial Airport Road corridor. He noted that it was anticipated at the time of the adoption of the SHASTEC Redevelopment Plan that the majority of the LMIHF generated in the Project Area would be spent outside ofSHASTEC. Mr. Tippin further noted that use of the SHASTEC LMIHF for the Program is an allowable use of redevelopment resources and will assist in meeting SHASTEC goals related to improvement of housing in the community. I Mr. Tippin recommended that the Council adopt a resolution finding that expenditure of a portion of the SHASTEC LMIHF outside of the SHASTEC Redevelopment Project Area boundaries is of benefit to the SHASTEC Project Area. He further recommended that the Board approve the proposed Program to be effective for a 12-month period beginning March 1,2010; approve the budget amendment designating $500,000 from the SHASTEC Project Area's LMIHF to be used for the Program; and adopt a resolution finding that the expenditure of the LMIHF outside of the SHASTEC boundaries is of benefit to the SHASTEC Project Area. Council/Agency Member Dickerson requested additional information as to the findings required to be made under Redevelopment Law which permit the SHASTEC funds to be used outside of the SHASTEC Project Area and the associated benefits to the Project Area. In response to Council! Agency Member Dickerson, Ms. Haddox noted that when the SHASTEC Project Area was adopted, the three entities, the Cities of Redding and Anderson and the County of Shasta, acknowledged that it was likely that SHASTEC LMIHF would be spent outside of its boundaries. She explained that State legislation has found that the expenditure of redevelopment housing funds are of general benefit to the community regardless if the funding is spent within the Project Area from which it is generated. She stated that most of the Agency's housing programs are City-wide programs. She related that the expenditure of these funds would directly benefit the Project Area in that it supports SHASTEC's obligation to improve the community's supply of affordable housing. I In response to Council! Agency Member Jones, Mr. Tippin confirmed that the $500,000 could potentially allow 20 to 30 households to take advantage ofthe Program. He pointed out that the main difference between this Program and others offered by the City is that it is a loan versus a grant. In addition, the Program allows the applicant to select between the two options. He opined that Option 1 could entice the homeowner to do additional work, i.e., adding countertops, upgrading flooring, etc., thereby assisting with stimulating the economy. Ms. Haddox added that staff would be creating an informational packet for the Program which outlined the pros and cons of both options. Kent Dagg, Chief Executive Officer of the Shasta Builders' Exchange (Exchange), expressed support of the proposed Program. He noted that consumers typically like visual repairs (Option 1), however, long-term savings are greater to the homeowner when above-the-attic repair work is completed (Option 2). He stated that the RED has surveyed a number of homes with high utility bills and believes participation in the HPP will assist in lowering those costs. He related that the Exchange was ready to heavily market the Program and hoped that applications could be expeditiously processed. Mr. Dagg indicated that he would like to see the Program ultimately expanded to the other two cities. I In response to Council! Agency Member Jones, Mr. Tippin opined that blending the two options would require additional Program funding. MOTION: Made by Council Member Bosetti, seconded by Council Member Stegall, to 02/22/2010 I I I 56 adopt Resolution 2010-27, a resolution of the City Council of the City of Redding, finding that the use of taxes allocated from the SHASTEC Redevelopment Project Area for the purpose of improving and increasing the community's supply oflow- and moderate-income housing outside the Project Area will be of benefit to the SHASTEC Redevelopment Project. The Vote: AYES: NOES: ABSENT: ABSTAIN: Council Members - Bosetti, Dickerson, McArthur, Stegall, and Jones Council Members - None Council Members - None Council Members - None Resolution No. 2010-27 is on file in the office of the City Clerk. ADJOURNMENT There being no further business, Mayor Jones declared the meeting adjourned at the hour of 7:05 p.m. ATTEST: 9~~ Deputy City Clerk 02/22/2010