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HomeMy WebLinkAboutMinutes - City Council - 2010-08-17I I I 154 City Council, Regular Meeting Civic Center Council Chambers 777 Cypress Avenue Redding, California August 17,2010 6:00 p.m. The Pledge of Allegiance to the Flag was led by Christine Sullivan. The Invocation was offered by Lynn Fritz, Karuk Tribal Descendent. 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, Public Works Director Crane, Assistant Development Services Director Nagel, City Clerk Mize, and Executive Assistant Grimm. The City Manager introduced Department Directors that were in attendance: Detwiler, Hansen, Hauser, Kreitman, Niemer, and Strong. PUBLIC COMMENT [T -100-050] J arret Yount submitted information regarding the Amgen Tour of California, a world-class cycling road race event, and relayed that the City of Chico had submitted a bid to secure a stage one finish-line host city award and suggested that the City of Redding submit a Request for Proposal to be the stage one starting-point host city for the 2011 bicycle race. [M-020] Doug Bennett, American Civil Liberties Union, endorsed Proposition 19 and supported a "sin tax" on marijuana sales. [S-070-100-170] Don Kirk asked for clarification on a project on Eastside Road and South Bonnyview Road. PRESENTATIONS Presentation by Leslie Morgan, Shasta County Assessor, regarding the Shasta County 201 O- Il Annual Assessments Report [S-010] Ms. Morgan gave an informational presentation regarding the Shasta County Assessor'- Recorder's 2010-11 Annual Report, incorporated herein by reference, which contains a detailed analysis of all taxable property values in Shasta County as of January 1, 2010. Mayor's Proclamation declaring August 2010, as Honor Flight Northern California Month [A-050-060-600] Mayor Jones presented a Mayoral Proclamation certificate to Tom Johnson, CFO for Honor Flight-NC, declaring August 201 0 "Honor Flight Northern California" month. Mr. Johnson and Rob Burroughs relayed information regarding the program that was established to honor WWII veterans by providing free-of-charge trips to visit the National W orId War II Memorial in Washington, D.C. ------------------- CONSENT CALENDAR The following matters were considered inclusively under the Consent CaJendar: Approval of Minutes - Regular Meeting of June 15,2010 Approval of Payroll and Accounts Payable Registers [A-050-100-500] It is the recommendation of the Finance Director that the City Council approve Accounts Payable Register No. 3,for check numbers 885821 through 886238, inclusive, ACH Transfer numbers 706Tthrough 7106, inclusive, and Wire Transfer numbers 2594 through 2663, inclusive, for a total of$8, 169,639.01, for the period of August 2,2010, through August 13, 2010;, and Payroll Register No.3, for electronic deposit transaction numbers 284920 through 08/17/2010 155 285833, inclusive, and check numbers 547219 through 547293, inclusive, in the amount of $2,567,757.42, for the period July 25,2010, through August 7, 2010. TOTAL: $10,737,396.43 Utility Easement Deeds - AT&T at Redding Municipal Airport [A-Ol 0-040/ A-090-1 00/C-070-200] It is the recommendation of the Support Services Director that the City Council grant two utility easements to Pacific Bell Telephone Company, d.b.a. AT&T California, for the Automatic Dependent Surveillance-Broadcast system being constructed by ITT Corporation at the Redding Municipal Airport. Authorization of Service Agreement - Mead & Hunt - for Design Services on the Runway Safety Area Improvements Project at Benton Airpark [A-090-020] It is the recommendation of the Support Services Director that the City Council approve Authorization of Service No.1 0-02 with Mead & Hunt, Inc., for engineering design services for Phase II of the Benton Airpark Runway Safety Area Improvements project, in an amount not-to-exceed $325,000. I Authorization of Purchase - Commercial Front-load Refuse Trucks per Bid Schedule No. 4289 [B-050-1 00/S-020-1 00] It is the recommendation of the Support Services Director that the City Council authorize the purchase of two additional 3 8-yard commercial front-load refuse trucks per Bid Schedule No. 4289, from Western Parts & Equipment Company for the amount of $489,138.48. Request For Proposal - No. 4345 for Recyclable Material Sorting Services to County of Shasta/Opportunity Center [B-050-100/S-020-550] , It is the recommendation of the Support Services Director that the City Council award Request For Proposal (RFP) No. 4345 for Recyclable Material Sorting Services to the County of Shasta through the Health and Human Services Agency, Social Services Branch, Opportunity Center, for a monthly cost of $25,799, to begin September 1, 2010, through August 31,2011, with four consecutive one-year renewal options through August 31,2015. I Award of Bid - Schedule No. 4347, two new 17,950 pound GVW Trucks with 37-foot Articulating/Telescoping Aerial Lift Platforms [B-050-100] It is the recommendation of the Electric Utility Director that the City Council award Bid Schedule No. 4347 to Crown Motors for furnishing two 17,950 Ib.GVW trucks with Versa Lift 37' SST-37 articulating/telescoping aerial lift platforms. Resolutions - Approving the Master Lease-Purchase Agreement with Oshkosh Capital and approving and adopting the 23rd Amendment to City Budget Resolution No. 2009-61 appropriating funds for the purchase of a 2010 Pierce Arrow XT 1500 GPM Pumper Engine [B-050-100/P-150-070] It is the recommendation ofthe Fire Chief that the City Council adopt Resolution No. 2010- 148 approving a five-year Master Lease-Purchase Agreement with Oshkosh Capital in an amount not-to-exceed $270,000 for the purchase of one 2010 Pierce Arrow XT 1500 GPM Pumper from Pierce Manufacturing for a pricenot-to-exceed $508,763, and adopt Resolution No. 2010-149 approving and adopting the 23rd amendment to City Budget Resolution No. 2009-61 appropriating $518,770 for above-noted fire engine, plus $10,000 to allow for the purchase of both loose equipment and communication equipment, for fiscal year 2009-10. I Award of Bid - Schedule No. 4315 - Palisades Pressure Reducing/Sustaining Valve Relocation Project [B-050-020/W -030-425] It is the recommendation of the Public Works Director that the City Council reject the apparent low bid from John C. Franklin Construction Inc., for failure to meet responsible bidder standard, and award Bid Schedule No. 4315 (Job No. 2350), Palisades Pressure Reducing/Sustaining Valve Relocation Project to Whitehawk Construction in the amount of $114,820; that an additional $25,000 be approved for administration and inspection fees and 08/17/2010 I I I 156 to obtain outside services for materials testing; and that $15,000 be approved to provide construction contingency funding, for a total of $154,820. Resolution - Accepting two Street Dedications within Schade Acres Subdivision (S-01-05) [S-1 01-086/S-070-230] It is the recommendation of the Public Works Director that the City Council adopt Resolution No. 2010-150 accepting for public use the offer of street dedications of Crown View Lane and a portion of Herbscenta Lane within Schade Acres Subdivision (S-01-05). Award of Bid - Schedule No. 4316 - Buenaventura Boulevard Widening Project [B-050-020/S-070-100-065] It is the recommendation of the Public Works Director that the City Council award Bid Schedule No. 4316 (Job No. 2329), Buenaventura Boulevard Widening Project, to Tullis, Inc., in the amount of $634,524.72; that an additional $130,319 be approved for administration and surveying during construction; and that $152,852 be approved to provide construction contingency funding, for a total of$917,695.72. Notice of Completion - Bid Schedule No. 4233 - Airfield Pavement Preservation at Redding Municipal Airport Project [B-050-020/ A-090-1 00] It is the recommendation of the Public Works Director that the City Council accept the subject construction contract (Job No. 9398) performed by Valley Slurry Seal Company as satisfactorily complete and authorize the City Clerk to file a Notice of Completion with the Shasta County Recorder. Final cost was $756,917.90. Accept Final Map and Authorize Subdivision Agreement - Dana Pointe Subdivision (a.k.a. LaQuercias Subdivision) (S-25-05) [S-101-109] It is the recommendation of the Public Works Director that the City Council: (1) authorize entering into a subdivision agreement with Ron Giddings; (2) authorize the Mayor to sign the subdivision agreement; (3) approve the final map for the Dana Pointe Subdivision (S-25- 05), located north of Dana Drive and west of Victor Avenue, by minute order; and (4) instruct the City Clerk to file the map with the Shasta County Recorder. Notice of Completion - Bid Schedule No. 4256 - Sidewalk Repair 2009 Project [B-050-020/S-070-285] , It is the recommendation of the Public Works Director that the City Council accept the subject construction contract (Job Nos. 2297 and 9023) performed by John C. Franklin Construction as satisfactorily complete and authorize the City Clerk to file a Notice of Completion with the Shasta County Recorder. Final cost was $227,438.70. Award of Bid - Schedule No. 4350, Federal Aid Project No. ESPL 5068(029), 2010 Overlay ~~ ' [B-050-020/F -200] It is the recommendation of the Public Works Director that the City Council award Bid Schedule No. 4350 (Job No. 2356) to J.F. Shea Construction, Inc" for the Federal Aid Project No. ESPL 5068(029), 2010 overlay and associated work on portions of Hilltop Drive from State Route 44 to State Route 299 and Cypress Avenue from Hartnell Avenue to Hilltop Drive, in the amount of $846,227.75; that an additional $85,000 be approved for administration and inspection fees; and that $100,000 be approved to provide construction contingency funding, for a total of $1 ,031 ,227.75. Letter - Shasta County Grand Jury regarding the City's Wastewater Treatment Program . [B-080-600-800/W -01 0-560/W -010-450] . It is the recommendation of the Public Works Director that the City Council authorize the Mayor to sign 'a letter responding to the Shasta County Grand Jury's recommendations regarding a section of the 2009-10 Grand Jury Report titled City of Redding Wastewater Treatment - The Choice is Clear. Award Request for Proposals - No. 4324 for Managed Care Services [R-I00-950] It is the recommendation of the Personnel Department/Risk Management Division that the City Council award Request for Proposal (RFP) No. 4324 to CorVel Heathcare Corporation, 08/17/2010 157 for workers' compensation claims bill reviewlbill payment services for the period September 1,2010, through July 15, 2013, in the estimated amount of between $150,000 to $200,000 annually; and to authorize staff to finalize, and Mayor to execute, a services contract for same. A MOTION WAS MADE by Council Member McArthur, seconded by Council Member Bosetti, that the foregoing items on the Consent Calendar be approved and adopted as recommended above. The Vote: AYES: Council Members - Bosetti, Dickerson, McArthur, Stegall, and Jones NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - None I Resolution Nos. 2010-148 through 2010-150 are on file in the Office of the City Clerk. ANNUAL ST ATE OF THE CITY LUNCHEON - Discussion regarding changing the Date [P-145-800] City Manager Starman relayed that Council Member Bosetti had reconsidered his position on this topic and now supported moving the event from January 2011 to September 2011. A MOTION WAS MADE by Council Member McArthur, seconded by Council Member Bosetti, changing the date of the annual State of the City Luncheon from January 2011 to September 26, 2011. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Bosetti, McArthur, and Jones Council Members - Dickerson and Stegall Council Members - None Council Members - None MONTHLY FINANCIAL REPORT - Electric Utility - June 2010 [B-130-070] Electric Utility Director Hauser summarized the Report to City Council (staff report) dated August 4,2010, which states that billed retail revenue was $1,885,385 (2.0%) below the projection for the twelve-month period ending June 2010. Wholesale power sales for the period were $30,900,010 (136.0%) above projections. Operating revenue after energy costs was $3,673,342 (10.8%) below expectations. The cost of energy was $33,651,254 above plan. Total operating expenses through June were $4,344,366 (15.2%) below budget. The Utility's net operating results of$6, 1 07,527 for the full fiscal year were $671 ,024 better than budget projections. Debt service payments to-date total $10,130,671. Capital expenditures . through June were $2,702,810 forrevenue- funded projects and $21,542,857 for bond-funded projects. The Electric Utility unrestricted cash balance at the end of June 2010 was $25.8 million. I Mr. Hauser reviewed the Industry Activities Update attached to the staff report, answered Council Members' questions, and recommended that the City Council accept the Electric Utility Monthly Financial Report for June 2010. A MOTION WAS MADE by Council Member Bosetti, seconded by Council Member Stegall, accepting the Monthly Financial Report for the Electric Utility for June 2010. The Vote: Unanimous Ayes I ORDINANCE - Amending Redding Municipal Code Title 6 - Business Taxes, Licenses and Regulations, Chapter 6.12 - Medical Marijuana Cooperatives and Collectives [M-020/L-070-1 OOIC-ll 0-1 00] Police Chief Hansen summarized the Report to City Council (staff report) dated August 5, 2010, incorporated herein by reference, relating to permitting and regulating medical marijuana cooperatives and collectives. He outlined three major changes to Title 6 of the Redding Municipal 'Code regarding marijuana plant clones for sale, medical marijuana nursery regulations, and supply and demand accounting practices for collectives, along with some minor changes and clarifications, all of which are detailed in the staff report. Chief Hansen relayed several requests that had been received from members of the medical marijuana community, but not incorporated into the proposed revisions, including Redding 08/17/2010 I I I 158 Police Department's position on allowing: cell phones in collectives; sale of paraphernalia at collectives; membership at multiple co-ops; non-member employees; and patients' children in the collective(s). City Attorney Duvernay advised that he had completed additional research ort requiring patients to have doctorrecommendations with specific quantities of dried medical marijuana, including correspondence from an American Civil Liberty Union attorney. He relayed that, as noted in the staff report, California Medical Association General Counsel recommends that physicians have conversations with patients to determine quantities of anticipated use of medical marijuana appropriate for reduction of symptoms, as defined by the patient, and does not encourage physicians to provide specific recommendations of daily use levels. Based on best available data, the proposed ordinance amends the code to allow doctor's recommendations for collective members to reflect either 1) the doctor's approval of a specific maximum amount to treat the medical condition or 2) the patient's self-dosage maximum requirement as expressed to the doctor. Mr. Duvernay endorsed these options as a reasonable means to achieve accountability in matching supply with demand and curb potential abuse. Chief Hansen answered Council Members' questions and recommended that the Council: 1) make findings that the proposed action is not a project as defined by CEQA; 2) introduce an ordinance for first reading by title only and authorize the City Clerk to publish a summary ordinance; and 3) direct staff to process an amendment to Redding Municipal Code Title 18 - Zoning, to consider "Medical Marijuana Nursery" as a permissible use within only the "General" and "Heavy Industrial" zoning districts. Don Kirk, James Benno, Doug Bennett, Natalie Fuellenbach, Joel Ankerich, Rob McDonald, and Frank Augusta expressed opinions on cannabis as a gateway drug, cultivation issues, availability of delivery devices/equipment, background checks for collective employees, cell phone use restriction, allowing children in collectives, and the evolution ofthe ordinance. Council Member Stegall supported staffs recommendation and expressed interest in allowing cell phones and sale of delivery tools at collectives, requested a six-month review of membership at multiple collectives, and opposed allowing children at collective sites. A MOTION WAS MADE by Council Member McArthur, seconded by Council Member Stegall, (1) making the finding that the proposed action is not subject to the provisions of the California Environmental Quality Act; (2) introducing Ordinance No. 2466, an ordinance of the City Council of the City of Redding amending Redding Municipal Code Title 6 - Business Taxes, Licenses and Regulations, Chapter 6.12 - Medical Marijuana Cooperatives and Collectives to designate "Medical Marijuana Nursery" as a permissible use within only the General and Heavy Industrial zoning districts for first reading by title only, waiving the full.reading of the Ordinance, and instructing the City Attorney to read the full title; (3) authorizing the City Clerk to publish a summary ordinance; (4) directing staff to process an amendment to Redding Municipal Code Title 18 - Zoning, to consider "Medical Marijuana Nursery" as a permissible use within only the General and Heavy Industrial zoning districts; and (5) directing staff to review the process and return to Council with possible recommendations in six-to-twelve months. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Bosetti, Dickerson, McArthur, and Stegall Council Members - Jones Council Members - None Council Members - None City Attorney Duvernay read the full title of the ordinance. MID-YEAR BUDGET REVIEW REPORT; and RESOLUTION - Adopting the 24th Amendment to Budget Resolution No. 2009-61 appropriating additional funds to reflect Mid-Biennial Budget Adjustments [B-130-070] City Manager Starman introduced the Mid-Biennial Budget Report and addressed staffs recommendation to allow the General Fund reserve to temporarily fall below five percent, to 4.2 percent, in light of three pending union negotiations, changing economic conditions, and the imminent initiation of the City's two-year comprehensive budget review cycle. Mr. 08/17/2010 159 Starman advised that if negotiations with labor unions did not yield sufficient financial concessions, necessary adjustments amounting to approximately $500,000 would be incorporated into the fiscal year 2012-13 budget proposal. Finance Director Strong summarized the Report to City Council (staff report) dated August 6,2010, incorporated herein by reference, relating to the Mid-Biennial Budget Report and a budget resolution appropriating $6,000 in fiscal year 2009-10 and $471,720 in fiscal year 2010-11 to reflect necessary budget adjustments. Mr. Strong recommended that the Council adopt a budget resolution and approve reducing the General Fund reserve in the 10- Year Plan to 4.2 percent as detailed in the budget review report attached to the staff report. City Manager Starman responded to Council Members' questions and provided additional information regarding the City's five percent reserve policy. I Council Member Dickerson stated support for the staff recommendation to temporarily reduce the General Fund reserve to allow other factors to change before laying off more public safety personnel. A MOTION WAS MADE by Council Member Dic~erson, seconded by Council Member Stegall, accepting staffs recommendation as detailed in the staff report dated August 6, 2010. The Vote: AYES: Council Members - Dickerson and Stegall NOES: Council Members - Bosetti, McArthur, and Jones ABSTAIN: Council Members - None ABSENT: Council Members - None Motion failed for lack of majority vote. Council Member McArthur opposed reducing the General Fund reserve and asked if that decision could be delayed until early 2011. Mr. Starman answered in the affirmative. Responding to Council Member Bosetti, Mr. Starman reiterated that redu~tions and/or adjustments amounting to approximately $500,000 would have to be made to the FYE 2011 budget, which roughly translated to a one percent reduction from all General Fund departments. Mr. Starman noted that approximately 60 percent of the reduction total, or $300,000, would be comprised of public safety cuts. I Council Member Bosetti stated interest in waiting until early 2011 to make cuts and opposed reducing the General Fund reserve below five percent now. Responding to Mayor Jones, Mr. Starman recalled that, in addition to other Council- implemented budget cuts, approximately $5 million in departmental reductions and one-time adjustments were made in February 2010. Mayor Jones stated opposition to reducing the General Fund reserve and acknowledged that labor negotiations could yield sufficient financial impacts that would supersede additional budget cuts. A MOTION WAS MADE by Council Member McArthur, seconded by Council Member Bosetti, adopting Resolution No. 2010-151, a resolution of the City Council of the City of Re<Jding adopting the 24th Amendment to Budget Resolution No. 2009-61 appropriating funds to reflect mid-biennial budget adjustments. The Vote: AYES: NOES: ABSTAIN : ABSENT: Council Members - Bosetti, McArthur, and Jones Council Members - Dickerson and Stegall Council Members - None Council Members - None I Resolution No. 2010-:-151 is on file in the Office of the City Clerk. 08/17/2010 I I I 160 A MOTION WAS MADE by Council Member McArthur, seconded by Council Member Bosetti, directing staff to develop a plan to end fiscal year 2010-11 with a projected five percent budget reserve and to plan for budget cuts or adjustments, if necessary, to be made in or about January 2011. The Vote: AYES:. NOES: ABSTAIN: ABSENT: Council Members - Bosetti, McArthur, and Jones Council Members - Dickerson and Stegall Council Members - None Council Members - None CLOSED SESSION At the hour of 8:11 p.m., Mayor Jones announced that Council would adjourn to Closed Session. At the hour of8:30 p.m., Mayor Jones reconvened the Regular Meeting to Open Session and reported that in reference to the: CONFERENCE WITH REAL PROPERTY NEGOTIATOR Property located at 375 Tourmaline Way and 3146 Bedrock Lane Assessor Parcel Numbers 112-050-055 and 115-200-010 Agency Negotiator: Assistant City Manager Tippin Negotiating parties: City of Redding and Nouvant Homes, Inc. Under negotiation: Price and Terms under Partner Up! Program [C-070-200] The Council authorized the City Manager, by unanimous vote, to make a counter offer to Nouvant Homes 'to purchase City owned property at 375 Tourmaline Way and 3146 Bedrock Lane. The price and terms of the sale, along with the executed contracts of sale, will be available in the Office of the City Clerk if the offer is accepted and a sales contract is executed for either or both properties. ADJOURNMENT There being no further business, Mayor Jones declared the meeting adjourned at the hour of 8:31 p.m. ATTEST: r+fJ.~~~~; City Clerk . 08/17/2010