HomeMy WebLinkAboutMinutes - City Council - 2009-05-19
105
City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress Avenue
Redding, California
May 19, 2009 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Assistant City Clerk Mize.
The Invocation was offered by Police Chaplain Betty Harrison-White.
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The meeting was called to order by Mayor Bosetti with the following Council Members
present: Dickerson, Jones, McArthur, and Stegall.
Also present were City Manager Starman, Assistant City Manager Tippin, City Attorney
Duvernay, Development Services Director Hamilton, Transportation and Engineering
Director Crane, Community Services Director Niemer, City Clerk Strohmayer, Assistant City
Clerk Mize, and Executive Assistant Stribley.
PUBLIC COMMENT
(E-120-250)
Mayor Bosetti stated that many members of the audience present this evening are interested
in speaking to the Transmission Agency of Northern California (TANC) proposed project
during the public comment period. He suggested that if they were amenable, the City would
arrange a future meeting to include the City Council, City staff, the Shasta County Board of
Supervisors, and T ANC representatives dedicated to answer questions for the public. Mayor
Bosetti also announced that T ANC is holding a meeting tomorrow at 10:00 a.m. in Rancho
Cordova at the Marriott Hotel.
Steve Kerns, Round Mountain resident, thought scheduling a meeting would be a good idea.
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Todd Papish said the scoping period for the T ANC project ends on May 31 st, and did not
believe a meeting could be held in time to address issues.
City Manager Duvernay interjected that those present wishing to speak to the T ANC issue
may do so but the matter is not on the this evening's City Council agenda, therefore, the City
Council may not take any action regarding this matter.
Rocky Compton wished to address the TANC issue this evening.
Mayor Bosetti advised that the public comment period for those wishing to address T ANC.
issues will be heard at the end of the meeting.
(R-030-145-350)
Elin Klaseen, Chair of the Parkview Neighborhood Association, invited everyone to attend
an ice cream social at the Juniper Academy to celebrate the Parkview Neighborhood
Association's 10-year anniversary and the Parkview Neighborhood Revitalization Plan.
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PRESENT AnON - Graduating Youth Action Council Members
[B-080-600-300]
Community Services Director Niemer presented graduating high school members of the
Youth Action Council with a duffle bag in appreciation for their service to the community.
She highlighted some of the more important contributions to the City such as weekend
concerts and the refurbishment of Fox Tail Park.
Callie Froese, President of the Youth Action Council, thanked the City for its support and
assistance.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Minutes - Special Meeting of May 5, 2009, and Regular Meeting of May 5,
2009
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106
Approval of Payroll and Accounts Payable Registers
(A-050-100-500)
It is recommended that Accounts Payable Register No. 21, check numbers 873280 through
873626 inclusive, in the amount of $6,051,182.19, for the period of May 1, 2009, through
May 15, 2009; and Payroll Register No. 22 electronic deposit transaction numbers 254401
through 255307 and check numbers 543482 through 543574 inclusive, in the amount of
$2,675,267.64 for the period April 19, 2009, through May 2,2009, be approved.
TOTAL: $8,726,449.83
Turtle Bay Exploration Park - Quarterly Report
(C-070-250-250)
It is the recommendation of the Assistant to the City Manager that the City Council accept
the Quarterly Report from Turtle Bay Exploration Park for the third quarter ofthe fiscal year
ending June 30, 2009.
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Joint Application - Cities of Anderson and Shasta Lake and the County of Shasta to the
California Department of Housing and Community Development for participation and
funding in the Neighborhood Stabilization Program
[G-100-170]
It is the recommendation of the Assistant City Manager that the City Council authorize
submission of a joint application to the California Department of Housing and Community
Development with the Cities of Anderson, Shasta Lake, and the County of Shasta for
participation and funding in the Neighborhood Stabilization Program in approximate amount
of$1.3 million and, if successful, the City of Redding's portion would be $565,967.
First Amendment to Development Funding Agreement - Redding Redevelopment Agency
and Community Revitalization and Development Corporation
[G-100-075 & R-030-100-055]
It is the recommendation of the Assistant City Manager that the City Council approve the
First Amendment to the Development Funding Agreement with the Redding Redevelopment
Agency (RRA) and Community Revitalization and Development Corporation for the
acquisition and rehabilitation of a mu1ti-fami~y building located at 2052 Placer Street,
increasing the RRA Housing Set-Aside Fund commitment from $177,500 to $267,500 and
deferring the payment of the City's and the Agency's loans.
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License Agreement - Friends of Shasta County Libraries for management of bookstore and
vending area in the Redding Library
[L-050 & A-070-080]
It is the recommendation of the Community Services Director that the City Council approve
a License Agreement with the Friends of Shasta County Libraries for use of space at the
Redding Municipal Library for food and beverage vending machines and for the sale of used
books in the amount of$640 per month.
Grant - U.S. Department of Justice through the Edward Byrne Memorial Competitive Grant
Program under the American Recovery and Reinvestment Act Category IV: Hiring of
Civilian Staff in Law Enforcement Agencies
[G-100-070 & P-150-150]
It is the recommendation of the Police Chief that the City Council approve submission of a
grant to the U.S. Department of Justice through the Edward Byrne Memorial Competitive
Grant Program under the American Recovery and Reinvestment Act (ARRA) Category IV:
Hiring of Civilian Staff in Law Enforcement Agencies in the amount of$1,941,650 to hire
or partially fund 13.5 positions for a two-year period in the Police Department.
First Amendment to Lease Agreement - Stimpel- Wiebelhaus Associates for property at
Redding Municipal Airport
[C-070-100 & A-090-100]
It is the recommendation of the Transportation and Engineering Director that the City
Council approve the First Amendment to the Lease Agreement (C-4204) with Stimpel-
Wiebelhaus Associates for four-acres of property at the Redding Municipal Airport in the
amount of$640 per month, providing an extension of three years expiring August 23, 2012,
with one option for a two-year extension if mutually agreed.
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5/19/2009
107
Notice of Completion - Bid Schedule No. 4012, Hilltop Drive Widening Over State Route
44 Project
[B-050-020 & S-070-100]
It is the recommendation of the Transportation and Engineering Director that Bid Schedule
No. 4012 (Job No. 2048/2296), Hilltop Drive Widening Over State Route 44 Project
awarded to Shasta Constructors be accepted as satisfactorily completed and that the City
Clerk be authorized to file a Notice of Completion with the Shasta County Recorder. The
final cost was $4,348,193.63.
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Notice of Completion - Bid Schedule No. 4193, 2008-09 Sanitary Sewer and Storm Drain
Repair and Replacement
[B-050-020/W -020-575/S-060-150]
It is the recommendation of the Transportation and Engineering Director that Bid Schedule
No. 4193 (Job No. 2326), 2008-09 Sanitary Sewer and Storm Drain Repair and Replacement
awarded to N&T Digmore, Inc. be accepted as satisfactorily completed and that the City
Clerk be authorized to file a Notice of Completion with the Shasta County Recorder. The
final cost was $215,619.15.
Reimbursement Agreement - LD&C, Inc. for the Preconstruction Project-development
Support for the Oasis Road Interchange Phase 1 Project; and
Resolution - Appropriating Traffic Impact Fee funds
[-8070-100 & ^B-130-070] a-O~()-//"
It is the recommendation of the Transportation and Engineering Director that the Mayor be
authorized to execute a Reimbursement Agreement with LD&C, Inc., formerly Levenson
Development Company, to provide preconstruction project-development support for the
Oasis Road Interchange Phase 1 Project in an amount not-to-exceed $779,332, and that a
contingency fund in the amount of $100,000 be authorized, and that the City Manager be
authorized to approve amendment to the Agreement up to the contingency limit.
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It is further recommended that Resolution No. 2009-47 be adopted, a resolution of the City
Council of the City of Redding, approving and adopting the 56th amendment to City Budget
Resolution No. 2007-127 appropriating $954,340 for the Oasis Road Interchange Phase 1
Project for fiscal year 2008-09.
Resolution - Appropriating Solid Waste Utility Unrestricted Retained Earnings funds for
floor reconstruction and slab stabilization at the Transfer Station tipping floor
[B-130-070 & S-020-650]
It is the recommendation of the. MuIlicipa!Utilities Director that Resolution No. 2009-48 be
adopted, a resolution ofthe City Cou~cii of the City of Redding approving and adopting the
58th amendment to City Budget Resolution No. 2007-127 appropriating $254,000 for floor
reconstruction and slab stabilization at the Solid Waste Transfer Station tipping floor.
MOTION: Made by Council Member Jones, seconded by Council Member Stegall, that the
foregoing items on the Consent Calendar be approved and adopted as recommended as
indicated above. The Vote:
AYES: Council Members - Dickerson, Jones, McArthur, Stegall, and Bosetti
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution Nos. 2009-47 and 2009-48 are on file in the Office of the City Clerk.
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PUBLIC HEARING - Rate Modifications for Solid Waste, Wastewater, and Water Utilities
RESOLUTION - Amending the Solid Waste Rate Schedule and Service Policies;
RESOLUTION - Adopting a Wastewater Utility Rate Schedule;
RESOLUTION - Adopting a Water Utility Rate Schedule; and
ORDINANCE - Amending Redding Municipal Code ChaptersI4.08- Water and 14. 16-Sewer
re rate changes
[W -030-400/^W -020-590/^S-020-500]
The hour of7 :00 p.m. having arrived, Mayor Bosetti opened the public hearing regarding rate
modifications for Solid Waste, Wastewater, and Water Utilities and amendments to the
Redding Municipal Code (RMC) Chapters 14.08 and 14.16 relating to changes to Water and
Wastewater rates.
5/19/2009
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Mayor Bosetti advised that any person is welcome to provide comments during the public
hearing, however, only property owners within city limits are permitted to protest. He stated
that only a ballot submitted to the City Clerk prior to the close of the public hearing will be
counted as a protest and that a protest may be made against all or any individual proposed
utility rate increase.
The following document is on file in the Office of the City Clerk:
Affidavit of Publication - Notice of Public Hearing
Assistant City Manager/Municipal Utilities Director Tippin provided highlights ofthe Report
to City Council dated May 6,2009, incorporated herein by reference, and recalled that at the
regular City Council meeting of March 17,2009, the Council set a public hearing for May
19,2009, to consider proposed modifications to the Water, Wastewater, and Solid Waste
Utility rates. Pursuant to Proposition 218 requirements, 29,214 forms were mailed to
affected property owners allowing them to consider and then protest the adjustments, if they
wished. Mr. Tippin pointed out that if 50% plus one of the property owners protested the
adjustments, the City Council could not modify the rates. He estimated that 14,608 protests
would be necessary to equal 50% plus one. If the rate adjustment is approved by the Council,
it would be effective on or about July 1,2009, and then annually through 2011.
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According to Mr. Tippin, the proposed rate increase per single family residence for
Wastewater Utility would be 9.4% in fiscal year 2009-10, 8.6% in 2010-11, and 7.9% in
2011-12. The Water Utility rate would increase 6% for each of the three fiscal years, and the
Solid Waste rate would increase 3% the first and second fiscal years and 4% in fiscal year
2011-12. He noted that two public meetings were held to inform the public of the proposed
rate adjustments and the reasons why the increases were being sought.
Mr. Tippin advised that the Redding Municipal Utilities are enterprise funds and, as such,
may only collect revenues equal to their expenses, a 5% reserve, and minimum debt service
coverage ratios. He stated that based on the average single-family home the monthly
increase would be approximately $3.00 for wastewater, $1.38 for water, and $0.54 for Solid
Waste based on a 96-gallon container for the fiscal year beginning 2009.
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Mr. Tippin related that the principal factors influencing the need for rate adjustments are an
aging infrastructure that has increased maintenance and in some instances failed, greater
regulations and enforcement, and increased costs for labor, fuel, and capital. He provided
an overview ofthe condition and needs of each utility and noted that key considerations for
rate increases are risks of deferring repairs, expansion projects, scheduling projects for
minimum risk with maximum efficiency and cost benefit, minimum rate increases to keep
costs low, and a positive cash balance.
Assistant City Manager Tippin recommended that the City Council adopt a resolution
amending the Solid Waste Utility's Solid Waste Rate Schedule & Service Policies, effective
July 1,2009, and for each of the next two fiscal years (2010 & 2011), adopt a resolution to
accept the Wastewater Utility Rate Schedule for the same time period, adopt a resolution
approving the Water Utility R~te Schedule for the same time period, and offer an ordinance
for first reading, waive the full reading, amending Redding Municipal Code Chapters 14.08-
Water and 14.16-Sewer relating to changes to water and wastewater rates.
Mary Rae Bryden, Redding resident, stated that the chart supplied to property owners did not
provide total percentages ofthe proposed increases and thanked Mr. Tippin for including the
total percentage of increase for each utility in his presentation. She pointed out that the
City's residents on social security have already been informed that they will not receive any
increases in their monthly stipends through 2011, and that is essentially the same for retirees
and pensioners. She also questioned the billing procedure for rate increases, recalling that
in 2007 the rate increase was effective January 1 st, however, when she received her bill the
City had charged the new rate for most of December. That occurred again in 2008 for the
rate increase on July 1 st. She believed the new rate should not be charged until the effective
date. Mr. Tippin responded that attempts were made to prorate and to coincide with the
meter read date, however, overcharging may have occurred in the past. He noted that staff
will work to insure that the increased rates are not charged until the effective date.
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Walt McNeill, Attorney representing Shastax and those members of Shastax who are
property owners in the City, contended that the rate increases will be used to pay for 25% of
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109
the cost of capital improvements for new development. He maintained those improvements
should be funded by the developers or new customers. He did not believe that Proposition
218 allowed the utilities to charge existing ratepayers for costs and services that do not
directly serve them.
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Mr. McNeill believed that the rate adjustment notices were inadequate and did not clearly
state the expected rate increase amount, noting that surcharges (footnoted on a customer bill)
are added to the basic increase but not counted as part of the percentage of increase. He
opined that the average aggregate increase is closer to 25% and each property owner should
have been told how much their specific utility charges would increase. He maintained that
the City should have performed a cost of service study, a fee study, and analysis of the
proposed increases.
In Mr. McNeill's opinion, directing utility late fees to the General Fund instead of the utility
fund was a violation of Proposition 218.
In response to Mr. McNeill's comments, City Attorney Duvernay related that a recent court
ruling relative to Proposition 218 determined that utility rate revenue could be used to cover
the cost of providing all services, short- and long-term, including operation, maintenance,
financing and capital improvements. He stated that the court acknowledged that utility
providers should consider new development and future expansion when setting rates. He
continued that the Council has the latitude to set the balance between the amount of capital
improvements to be paid by the developer (75%) and the amount to be paid by the rate payer
(25%).
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City Attorney Duvernay recalled that Proposition 218 passed in 1996 but was contested
through the courts for ten years; therefore, the City did not implement a majority protest
compliance process until 2006. Based on the court's ruling that utility rate fees cannot be
used to subsidize the General Fund, in 2005-06 the City Council ceased in lieu tax transfers
to the General Fund and reviewed it's policy regarding late fees which until that time had
been placed in the utility fund. He said it was determined that because late fees are a penalty
and not a cost of service, and since Proposition 218 stipulated that rates must relate to the
cost of providing service, late fees should go to the General Fund. Mr. Duvernay was also
satisfied with the content of the notice to property owners and believed it met the intent of
Proposition 218.
Mr. Tippin explained that the two surcharges for Pump House #1 have existed since 2006
and will remain on the bill without change. While he understood that property owners would
prefer to be notified of an exact increase, water customers are charged for the meter and
usage; consequently, the City could not determine the amount of future water use.
Council Member Dickerson pointed out that percentages can be misleading, and the focus
should be on the actual dollar amount of increase.
Curtis Brown, Buckeye Water District, did not oppose the increases except the increase that
would include infrastructure for new development projects.
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Lee Homer did not oppose rate increases in general but maintained he would be paying
approximately 12% more overall, and pointed out that consumers were also being burdened
with additional increases in state fees such as vehicle license fees and a sales tax increase.
He suggested the City consider increasing the rates for two years and then review the needs
to determine ifthe increase is necessary for the third year. He believed that the City should
hire an outside rate consultant to perform a study and suggested using tax exempt financing
for capital projects. He also asked that utility bills include the date when a surcharge will
end.
Mayor Bosetti determined that no other individual wished to address this matter, closed the
public hearing, and directed the City Clerk to tabulate the ballots.
In response to Council Member McArthur, Mr. Tippin explained that although staff had
considered the two-year rate increase option, it was determined that a three-year plan was
more practical due to the lengthy environmental and right-of-way issues related to capital
projects. He noted, however, that if revenues collected during the first and second year are
sufficient, the third year increase could be waived. He added that significant costs, including
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staff time, will need to be considered for any future utility increases because projects will
include updating master plans.
Mr. Tippin observed, in response to Mr. Horner, that the City attempts tax exempt financing
whenever feasible. With regard to printing the surcharge ending date on the bill, Mr. Tippin
acknowledged that it may not currently be on utility bills, but he will request that it be
included on future billings.
Council Member Jones expressed opposition to in lieu and utility late fees being paid to the
General Fund. He stated that, although he understood the need for utility rate increases, he
would vote no until the City Council reconsidered the late fees issue.
City Clerk Strohmayer tallied the ballots for the Wastewater Utility rate increase and reported
that 29,214 ballots were mailed to property owners, of which 29,214 receive wastewater
service, and 1,868 protests were received; accordingly, there was not a majority protest.
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MOTION: Made by Council Member Stegall, seconded by Council Member Dickerson,
adopting Resolution No. 2009-50, a resolution of the City Council of the City of Redding,
adopting a Wastewater Utility Rate Schedule. The Vote:
AYES: Council Members - Dickerson, McArthur, Stegall, and Bosetti
NOES: Council Members - Jones
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2009-50 is on file in the Office ofthe City Clerk
City Clerk Strohmayer tallied the ballots for the Water Utility rate increase and reported that
29,214 ballots were mailed to property owners, of which 26,200 receive water service, and
1,811 protests were received; accordingly, there was not a majority protest.
MOTION: Made by Council Member Stegall, seconded by Council Member Dickerson,
adopting Resolution No. 2009-51, a resolution of the City Council of the City of Redding,
adopting a Water Utility Rate Schedule. The Vote:
AYES: Council Members - Dickers'on, McArthur, Stegall, and Bosetti
NOES: Council Members - Jones
ABSTAIN: Council Members - None
ABSENT: Council Members - None
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Resolution No. 2009-51 is on file in the Office of the City Clerk
City Clerk Strohmayer tallied the ballots for the Solid Waste Utility rate increase and
reported that 29,214 ballots were mailed to property owners, of which 29,000 receive solid
waste service, and 1,802 protests were received; accordingly, there was not a majority
protest.
MOTION: Made by Council Member Dickerson, seconded by Council Member McArthur,
adopting Resolution No. 2009-49, a resolution of the City Council ofthe City of Redding,
amending the Solid Waste Utility's Solid Waste Rate Schedule and Service Policies.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Dickerson, McArthur, Stegall, and Bosetti
Council Members - Jones
Council Members - None
Council Members - None
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Resolution No. 2009-49 is on file in the Office of the City Clerk
Council Member Dickerson offered Ordinance No. 2435 for first reading, an ordinance of
the City Council ofthe City of Redding amending Redding Municipal Code Chapter 14.08
Water, Sections 14.08.310 and 14.08.315 and Chapter 14.16-Sewers, Sections 14.16.200 and
14.16.210, all relating to changes to water and wastewater rates.
MOTION: Made by Council Member Dickerson, seconded by Council Member Stegall;
that the full reading of Ordinance No. 2435 be waived, and that the City Attorney be
instructed to read the full title.
5/19/2009
111
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Dickerson, McArthur, Stegall, and Bosetti
Council Members - Jones
Council Members - None
Council Members - None
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MODIFICA nON TO THE PUBLIC COMMENT PERIOD - Regular City Council meetings
[A-050-060]
City Manager Starman recalled that in 2006, the City Council modified the public comment
period for regular City Council meetings, moving it from the last item on the agenda to the
, first item. However, it was noted at the time that this action could result in lengthening the
meetings. He pointed out that during a few recent City Council meetings, the public
comment period lasted more than an hour which caused regular agenda items to be discussed
late into the evening. In deference to citizens wishing to comment on items posted on the
regular agenda, Mr. Starman said the Mayor suggested that the current policy be reevaluated.
As a compromise between the needs of citizens wishing to address agendized items and those
wishing to speak during public comment, Mr. Starman recommended that the regular City
Council meeting public comment period be modified to allow up to 30 minutes at the
beginning of a meeting, and, if necessary, provide additional time for public comment at the
end of a meeting. He added that if Council approves the modifications, the City Attorney
would prepare an amendment to Redding Municipal Code Section 2.04.120.
Council Member Stegall supported the proposal pointing out that the. 30-minute time limit
would almost always be enough time to accommodate everyone wishing to speak during the
public comment period.
Council Member Jones believed that fewer people attended the City Council meetings to
speak when the public comment period was at the end of the meeting. He preferred the
current procedure stating that the proposed modifications are a step backwards in open
government.
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Council Member McArthur supported the proposed time limit at the beginning of the
meeting but suggested that mechanisms be set in place to ensure that a group of speakers on
the same topic not be allowed to monopolize the entire 30 minutes thereby pushing speakers
on other topics to the end of the meeting.
Council Member Dickerson emphasized that Council should listen to any and all speakers
wishing to address an issue but equal consideration should be given to those wishing to speak
on an agendized item. He remarked that if a large group speaks extensively about a single
issue, it will be citizens wishing to address an agendized item who are inconvenienced by
having to wait for hours to voice their concerns. Mr. Dickerson felt certain that Council
would be able to sort the speaker cards in a manor that would give some members of each
group an opportunity to speak during the first session.
Mayor Bosetti favored the time limit because it would balance the needs of all potential
speakers.
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MOTION: Made by Council Member Stegall, seconded by Council MemberDickerson,
conceptually approving modifications to the City Council regular meeting protocol allocating
up to a maximum of 30 minutes at the beginning of every regular City Council meeting for
non-agendized public comment, and, if needed, providing additional time at the end of the
meeting, and directed staff to bring back an ordinance amending Redding Municipal Code
Section 2.04.120 regarding same. The Vote:
AYES: Council Members - Dickerson, McArthur, Stegall, and Bosetti
NOES: Council Members - Jones
ABSTAIN: Council Members - None
ABSENT: Council Members - None
OPPOSE PROPOSAL BY THE CALIFORNIA DEPARTMENT OF FINANCE - Suspend
Proposition lA and borrow $2 billion from local government; and
RESOLUTION - Declaring that a severe fiscal hardship will exist if additional property tax
funds are seized by the State
[L-040-300 & ^B-130-070]
City Manager Starman recalled that prior to the passage of Proposition lA -2004 (Prop lA)
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the State of California routinely confiscated local government revenue in order to balance
its budget and the proposition, which passed by an 80% margin, was designed to protect local
government revenue. Mr. Starman clarified that the California Department of Finance
(CD OF) identified a loophole in Prop 1 A which could allow the state to declare a financial
hardship and raid the coffers of local government of up to 8% of property tax revenue,
theoretically to be repaid within three years. He advised that when the May 11, 2009, Report
to City Council was written, the CDOF had notified cities that suspension of (Prop lA) was
a potential option to help balance the state's budget. Mr. Starman reported that since then
the Governor has announced that, should measures on the ballot fail, suspension of Prop lA
will become an official proposal and the state will "borrow" $2 billion from local
government. Mr. Starman explained that this equates to a $1.8 million loss of property tax
revenue for the City and if that occurs, the City would be forced to make additional budget
reductions.
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Mr. Starman recommended that a resolution be adopted opposing the suspension of Prop lA
and declaring that a severe fiscal hardship will exist in the City if additional property tax
funds are seized by the state.
MOTION: Made by Council Member Dickerson, seconded by Council Member Stegall,
opposing suspension of Proposition lA and adopting Resolution No. 2009-52, a resolution
of the City Council of the City of Redding, declaring that a severe fiscal hardship will exist
if additional property tax funds are seized by the state and additional unfunded mandates are
adopted by the state. The Vote:
AYES: Council Members - Dickerson, Jones, McArthur, Stegall, and Bosetti
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2009-52 is on file in the Office of the City Clerk
RESOLUTION - Authorizing the Electric Utility Director to sign Contract No. #09-SNR-
01256 and confirmation letter for advance funding with the Western Area Power
Administration
[E-120-900]
Electric Utility Director Hauser recalled that there are two major balancing authorities in
California, the California Independent Systems Operators and the Sacramento Municipal
Utilities District (SMUD) Western Balancing Authority, and there is a line of demarcation
for transactions between the users within each Authority. Transactions between the users
that cross from one Authority into another Authority have significant fees attached. He said
the proposed Contract will provide financial arrangements to mitigate the rate disparity
caused by fees charged when energy crosses the electric boundary between the two Balancing
Authorities. He related that there will be a one-time cost of$3,400, in advance, to be placed
in a trust account to cover the costs of scheduling coordinating services. Redding Electric
Utility (REU) will request through a Confirmation Letter to the Western Area Power
Administration (Western) that the one-time cost of $3,400 come from REU's existing
account with Western.
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Mr. Hauser advised that no transfer of power exists at this time from another Authority, but
it is a distinct possibility for the future.
Mr. Hauser recommended that a resolution be adopted authorizing the Electric Utility
Director to sign Contract No. 09-SNR -01256 for Displacement of Base Resource Energy and
a confirmation letter for advance funding in the amount of$3,400 through REU's existing
account with Western.
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MOTION: Made by Council Member Jones, seconded by Council Member McArthur,
adopting Resolution No. 2009-53, a resolution ofthe City Council of the City of Redding,
authorizing the Electric Utility Director to execute Contract No. 09-SNR-01256 for the
Displacement of Base Resource Energy and the confirmation letter for advance funding with
the Western Area Power Administration in the amount of$3,400. The Vote:
AYES: Council Members - Dickerson, Jones, McArthur, Stegall, and Bosetti
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
5/19/2009
113
Resolution No. 2009-53 is on file in the Office of the City Clerk
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RESOLUTION - Approving amendments to the Memorandum of Understanding with the
International Brotherhood of Electrical Workers (IBEW), Maintenance Workers
[P-100-050-070]
Personnel Director Johnson related that the Memorandum of Understanding (MOU) with the
International Brotherhood of Electrical Workers (IBEW) Local Union 1245-Maintenance
Employees expires on November 1, 2008. Bargaining for a new MOU began in September
20Q8; but with the downturn of the economy, she said it was agreed to postpone the MOU
bargaining process until May 1, 2010, with the option for postponement for an additional
year if the economy continues its downturn. The current MOU will be in full force and effect
with no cost of living adjustments or changes to the health and welfare benefit programs
during this period of time. Ms. Johnson noted two equity adjustments, one to the salary
range for the Electrical Technician classification and a new classification entitled Building
and Facilities Mechanic I/I1, effective May 3,2009, and indicated that these changes will
cost $51,000 annually.
Ms. Johnson recommended that a resolution be adopted amending the MOU with IBEW,
Maintenance Employees incorporating the changes set forth above, effective May 3,2009.
City Manager Starman and Ms. Johnson thanked the IBEW Maintenance Employees for their
concessions, thereby saving the City $169,000.
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MOTION: Made by Council Member Jones, seconded by Council Member McArthur,
adopting Resolution No. 2009-54, a resolution of the City Council ofthe City of Redding,
amending the Memorandum of Understanding with the International Brotherhood of
Electrical Workers, Local Union 1245-Maintenance Employees, effective May 3,2009.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Dickerson, Jones, McArthur, Stegall, and Bosetti
Council Members - None
Council Members - None
Council Memhers - None
Resolution No. 2009-54 is on file in the Office of the City Clerk
ORAL REPORT - City Council Member attendance at conferences/meetings reimbursed at
City expense (Requirement of Assembly Bil11234)
(A-050-060)
Council Member McArthur reported attending the Sacramento Valley Division of the
League of California Cities meeting in Loomis, California on May 8,2009.
Mayor Bosetti reported attending the Sacramento Host Reception with the Governor in
Sacramento on May 18, 2009.
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CONTINUED PUBLIC COMMENT re Transmission Agency of Northern California
(T ANC) proposed project
(E-120-250)
Tracey Licerio, Stan Sours, Roseanna Simonis, Sue, Lynn, Gerald Nelson, Robert
Reitenbach, Randy Compton, Betty Messick, Mauro Oliveira, Rocky Compton, Steve Kerns,
Jeff Kniep, Dona Snyder, Judy Sours, Donna Caldwell, Myra Swarts, Thomas Schmidt,
Sonny Compton, Todd Papesh, Ed Marek, David Strawn, and Jim Pearson expressed
opposition to the City's participation in the Transmission Agency of Northern California
(T ANC) proposed project to bring transmission lines through the Round Mountain area
. asserting the following: living in proximity of the power lines may cause cancer and other
health issues; the response period for the proposed T ANC project which ends May 31, 2009,
should be extended; power lines will have a devastating impact on the community; the
process for the proposal is not transparent; project is not "green" as represented; will use
clear cutting swaths and herbicides; non-renewable energy sources would also use the lines;
local sources should be pursued for generation of power; the proposal should be studied
further; Redding won't get any of the power from Raven; power will be sent southward;
information on the project is contradictory; the project won't accomplish what it is supposed
to; it is illegal to put lines over a house; the south state should use more solar and wind
power; questioned integrity of government trying to get $1.5 billion under false pretenses;
most productive sites exist in southern California; TAN C was not forthright about the Ready
Report; it is not good business for the City to be involved in a bogus project; environmental
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impacts to citizens; multitude oflines will impede fire fighting abilities; loss ofbio-diversity,
Redding Electric Utility should be environmentally responsible; excess cost for renewable
energy; will ruin the tourism economy; lines started the Fountain Fire, children should not
have to live under power lines; questioned what the City stood to gain and how much money
the City would make offthe project; people didn't find out their property was affected until
after the scoping meetings; TANC is performing a massive land grab; the TANC issue
should be placed on the City Council agenda for reconsideration; the comment period should
not be limited.
ADJOURNMENT
There being no further business, at the hour of 10:55 p.m., Mayor Bosetti declared the
meeting adjourned.
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APPROVED
7~6~
Mayor
ATTEST:
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5/19/2009