HomeMy WebLinkAboutMinutes - City Council - 2006-10-03
205
City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress Avenue,
Redding, California
October 3, 2006 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Bureau of Land Management Assistant Field
Manager Francis Berg.
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The Invocation was offered by Police Chaplain Cyndee Thomas.
The meeting was called to order by Mayor Murray with the following Council Members
present: Dickerson, Mathena, Pohlmeyer and Stegall.
Also present were City Manager Starman, Assistant City Manager Bachman, City Attorney
Duvernay, Assistant City Attorney Frediani, Development SelVices Director Hamilton,
Transportation and Engineering Director Tippin, Community SelVices Director Niemer,
Engineering Project Coordinator McClain, Senior Redevelopment Project Coordinator
Haddox, City Clerk Strohmayer, and Executive Assistant Stribley.
PUBUC COMMENT
(P-150-150) "
Fran Jenkins, Redding resident, related that the transient problem had returned to the
Parkview Neighborllood and requested that staff provide a permanent solution. She advised
that the transients not only repeatedly trespass and leave their litter on private property, but
also inhabit the Parkview Neighborllood Park making it unfit for residents and children to
enjoy a facility they worked so hard to bring to fruition.
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RECOGNITION OF PARTICIPANTS IN THE CHURN CREEK CLEAN-UP PROJECT
(A-050-060 & S-060-150-135)
Mayor Murray related that the Chum Creek Clean-Up Project was held September 16,2006,
and during that event, fifty-nine (59) tons of trash and debris were removed from Chum
Creek.
Mayor Murray introduced Team Commanders for the event, Chris Glover, Rod Lindsay,
Bureau of Land Management Assistant Field Manager Francis Berg, Gail Rich, Vickie
Marler, Elizabeth Zaharris, Mal)' Occasion, and Chris Carmona. He stated that without
sponsors such as the Shasta Builders Exchange and the Shasta Board of Realtors the event
could not have been as successful. He also acknowledged the Logistics Team: Redding
Police Community SelVice Officer Bob Brannon, California Department ofFish and Game
Dan Fehr, Dennis Daily, representing the City of Shasta Lake, City of Redding Community
SelVices Director Niemer, City of Redding Municipal Utilities Manager Miralles, J &A Foods
Matt Madison, KRCR Mike Mangas, Redding RotaI)' Norm Braithwaite, and the Asphalt
Cowboys.
Randy Smith, Co-Chair of the Chum Creek Clean-Up, said that the line of fully-stuffed
orange refuse bags extended for 17 miles along the Creek, and he thanked the community
and the hundreds of participants for undertaking such a large and important project.
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Mayor Murray added his thanks to the more-than-500 participants, the sponsors, and logistic
teams, and the 200 plus supporters without whom the event could not have been such a
success.
Mayor Murray related that a team is working to identify and barricade easily accessible areas
to prevent further dumping into Chum Creek, and that plans are also underway to return
Chum Creek's streambed to gravel to encourage the salmon, spotted in the Creek near Shasta
Dam Boulevard, to spawn there once again.
RESOLUTION - "Breast Cancer Awareness Month" and "Think Pink Day"
(A-050-060-600)
Dr. Figueroa, co-founder of "Think Pink Day," and Peri Brustad, representing Nor-Cal
Think Pink, thanked the City Council for its continued support and promotion of breast
cancer awareness and the annual "Think Pink" Campaign (Campaign). Dr. Figueroa pointed
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206
out that the Campaign began in Redding ten years ago with the distribution of only 500
"Think Pink" information bags to citizens interested in learning more about breast cancer.
This year, 40,000 bags will be distributed. He pointed out that 37 communities will be
participating in Northern California, and that this program is being adopted by cities
throughout the country. Dr. Figueroa added that since its inception, the Campaign has been
responsible for a significant increase in early diagnosis of breast cancer.
Dr. Figueroa thanked City Clerk Strohmayer for her continued support and participation of
"Think P~nk Day" and also thanked City staff, Redding Soroptomist, and Redding Rotary.
MOTION: Made by Council Member Mathena, seconded by Council Member Stegall, I
adopting Resolution No. 2006-180, a resolution of the City Council of the City of Redding
declaring the month of October 2006, as "Breast Cancer Awareness Month," and October
19,2006, as "Think Pink Day." The Vote:
AYES: Council Members - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2006-180 is on file in the Office of the City Clerk.
PRESENTATION - Older Adult Policy Council- Shasta County Adult Setvices
(S-OlO)
Jim Livingston, Shasta County Public Guardian and Program Manager for Adult Setvices,
provided a video presentation entitled "Choices for Independence" highlighting the
importance of seniors leading healthy, active life styles in order to remain living
independently in their own homes. He stated that the goal of the Shasta Senior Network is
to provide the very best and most cost effective setvices. These setvices are available on the
website www.shastaseniornetwork.orgorbycalling223-6034.Mr. Livingston added that
the "Power to Seniors" is a partnership with the City of Redding. The annual "Soup
Kitchen" event-will be held October 26, 2006, at the Veterans Hall from 5:00 p.m. to 7:30
p.m., and is a major fundraiser for the organization.
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Mayor Murray noted the City Council's strong support and continued participation in this
annual event.
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CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Minutes - Regular and Special Meetings of September 19, 2006
Approval of Payroll and Accounts Payable Registers
(A-050-100-500)
It is recommended that Accounts Payable Register No.6, check numbers 844639 through
844975 inclusive, in the amount of $10,690,103.91, for the period of September 18,2006,
through September 29, 2006; and Payroll Register No.7, electronic deposit transaction
numbers 192738 through 193888 and check numbers 532809 through 533006 ,in~lusive, in
the amount of $2,349,744.53, for the period of September 10, 2006, through September 23,
2006,be approved.
TOTAL: $13,039,848.44
Treasurer's Report - August 2006
(A-050-100-600)
Total Treasurer's Accountability
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$158,673,333.10
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities
$248,506,433.67
ACR133 Report and Cash Reconciliation
(F-205-095-650)
It is the recommendation of the Assistant City Manager that the ACR133 Report and the
Proof of Cash Reconciliation for August 2006 be accepted.
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207
Ordinance - Adopting the Oasis Road Specific Plan
(G-030-110 & L-01O-230)
It is the recommendation of the Development Services Director that Ordinance No. 2372 be
adopted, an ordinance of the City Council of the City of Redding adopting the Oasis Road
Specific Plan and approving Rezoning Application RZ-II-06 amending Redding Municipal
Code Chapter; 18.57 Zoning Map providing "SP" Specific Plan Overlay District.
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The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Dickerson, Mathena, and Pohlmeyer
Council Members - Stegall and Murray
Council Members - None
Council Members - None
Award of Bid - Bid Schedule No. 3971, Single-phase, Pad-type Distribution Transformers
(B-050-100 & E-090-160)
It is the recommendation of the Electric Utility Director that Bid Schedule No. 3971, Single-
phase, Pad-type Distribution Transformers be awarded to Howard Industries in the amount
of $251,402.58 with a total evaluated cost (including losses) of $346,686.70.
Award of Bid - Bid Schedule No. 3972, Three-phase, Pad-type Distribution Transformers
(B-050-100 & E-090-160)
It is the recommendation of the Electric Utility Director that Bid Schedule No. 3972, Three-
phase, Pad-type Distribution Transformers be awarded to Pauwels Transformers in the
amount of $316,800.41 with a total evaluated cost (including losses) of $532,928.
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Monthly Financial Report - Electric Utility
(B-130-070)
It is the recommendation of the Electric Utility Director that the City Council approve the
Electric Utility's Monthly Financial Report for August 2006. Retail power sales revenue was
17.2 %, or $2,532,632 above projections. Operating revenue after energy costs was
$5,280,251 or 27.2 % above expectations. The total cost of electricity through August 2006
was $2,880,437 or 23.8% above projections. The Utility's net operating results through
August was $5,058,498.
Monthly Financial Report - General Fund
(B-130-070)
It is the recommendation of the Assistant City Manager that the City Council accept the
General Fund's MontWy Financial Report for August 2006. Total revenue to date is $8.6
million or $1,204,219 (16.3%) above staffs cash flow projection. Expenditures at month
end, excluding encumbrances, total $11,095,848 or $381,232 (3.5%) above staffs original
projection. Encumbrances total $4,565,085.
Amendment to the Electrical Facilities Agreement - Caltrans
(S-050-100)
It is the recommendation of the Transportation and Engineering Director that the City
Council approve the Amendment to Exhibit A of the Electrical Facilities Agreement (C-
3569) with Caltrans for sharing cost of state highway electrical facilities and that the City
Manager be authorized to execute said amendments.
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Amendment to Agreement - North State Resources
(S-060/P-050-600- 200/ P-050-135)
It is the recommendation of the Transportation and Engineering Director that the City
Council approve the Amendment to the Agreement with North State Resources for wetlands
delineation and Mitigation and Monitoring Plan for the Sports Complex and Clover Creek
Preserve providing an additional $7,400 to cover costs greater than anticipated.
Resolution - Accepting streets and improvements in Autumn Glen Subdivision
(S-070-230 & S-101-053)
It is the recommendation ofthe Transportation and Engineering Director that Resolution No.
2006-181 be adopted, a resolution of the City Council of the City of Redding accepting for
maintenance and operation streets in Autumn Glen Subdivision (S- 2-03), located on Tarmac
Road west of Shasta View Drive, by Sierra Pacific Industries; that the improvements be
accepted as satisfactorily completed, and that the City Clerk be instructed to return securities
to the developer.
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208
MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer,
that all the foregoing items on the Consent Calendar be approved and adopted as
recommended with the exception of the item approved by separate vote as indicated above:
The Vote
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
Council Members - None
Council Members - None
Council Members - None
Ordinance No. 2372 and Resolution No. 2006- Un a~e on file in the Office of the City Clerk.
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At the hour of 7:42 p.m., Vice Mayor/Agency C~air Dickerson reconvened the Special
Meeting of the Redding Redevelopment Agency for a joint public hearing with the City
Council.
JOINT PUBLIC HEARING - Amendment to the SHASTEC Redevelopment Plan
RESOLUTION - Use of the SHASTEC Housing Set-Aside Funds
ORDINANCE - Approving and adopting the First Amendment to the Redevelopment Plan
for the SHASTEC Redevelopment Project
(R-030-200)
The hour of 7:00 p.m. having arrived, Mayor Murray opened the public hearing regarding
the 2006 Amendment to the Redevelopment Plan for the SHASTEC Redevelopment Project
(Project). He stated that the following proceedings are required by California Community
Redevelopment Law (Law).
City Manager Starman related that the amendment to the SHASTEC Redevelopment Plan
is necessary to modify the Project area to include 870 acres of property, including the site
selected for the Stillwater Business Park (Added Area), a~d to add additioQal c~pital
activities related to development of the Stillwater Business Park. He pointed out that the
SHASTEC partner agencies (City of Anderson Redevelopment Agency and the CouI}.ty of
Shasta Redevelopment Agency) Partner Agencies, are considering the same amendment.
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Sepior Redevelopment Project Coordinator Haddox entered into the record the following
exhib~ts and advised that the documeI)ts are on file in the Office of the City Clerk:
1. Affidavit of Pub~ication in the Redding Record Searchlight, once each week for four
consecutive weeks.
2. Certificate of Mailing Notice and attached map to property owners indicating
properties that are potentially subject,to acquisition by the Partner Agencies.
3. Certificate of Mailing Notice to taxing agencies within the Added Area.
4. Certificate of Mailing Notice to residents and business within the original Project
Area and the Added Area.
10/3/2006
Ms. Haddox stated that findings ~nd determination~ must be made as follows:
1.
2.
Proposed Added Area meets the legal qualifications for a blighted area.
Proposed 2006 Amendment (Amendment) to the SHASTEC Redevelopment Plan
(Plan) would redevelop the .Added Area in conformity with the law and in the
interests of the public peac~, health, ~afety, and welfare.
The adoption and execution of the Amendment is ecol1omically sound and feasible.
The Amendm~nt to the PI~n co.nforms to t~e City of Redding General Plan.
Carrying out the ~endment to the Plan would promote the public peace; health,
safety, and welfare of the community and effectuate the purposes and policies of the
law.
The .condemnation of real property, as provided in the Amendment to the Plan is
necessary to tne execution of the Plan, and adequate provisions have been made for
payment for properties to be acquired as provided by law.
Inclusion of any lands, buildings, or improvements which are not detrimental to the
public health, safety, or welfare is necessary for the effective redevelopment of the
whole area of which they are a part, and any such area is necessary for effective
redevelopment and is not included for the purpose of obtaining the allocation of tax
increment revenues from such area without other substantial justification for its
inclusion.
The elimination of blight and the redevelopment of the. Added Area cannot
reasonably be expected to be accomplished by private enterprise acting alone without
the aid and assistance of the SHASTEC Partner Agencies.
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3.
4.
5.
6.
7.
8.
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Ms. Haddox entered into the record the Certification of Certain Official Actions taken by the
City Council, the Redding Planning Commission, and the Redding Redevelopment Agency
(RRA) in connection with preparation of the Amendment to the Plan.
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She summarized pertinent parts of the Report from the SHASTEC Redevelopment Project
Technical Committee Report No. 2006-06, dated September 13,2006, within the Report to
City Council and RRA dated September 21,2006, both included and incorporated herein by
reference, pointing out that only 680 acres ofthe proposed 870 acres of the Added Area will
be the site of the Stillwater Business Park (Park). She advised that the Report to the
Legislative Bodies prepared for the 2006 Amendment to SHASTEC Redevelopment Plan
was provided to the City Council and RRA on September 5,2006. She added that the
Amendment also proposes to add new capital activities to the existing list of public
improvements authorized by the Plan to include construction of infrastructure necessary for
the development of the Park's environmental, open space, and recreational components, as
well as improvement of several existing roadways to the Park.
Ms. Haddox explained that the blight conditions identified in the Amendment include parcels
that are inadequately sized for today's economic needs, physical features that inhibit the
economically feasible development of the area by the private sector, and stagnant and
depreciating property values as well as significant infrastructure deficiencies, especially in
the circulation system and that adoption of the Amendment will address these issues. She
related that the analysis of the current physical and economic blight conditions present
concludes that the area to be added meets the legal qualifications as a blighted area and the
analysis of the financial feasibility of the Amendment concludes that the proposed
redevelopment program is economically sound and feasible. She stated that the analysis of
land-uses within the total Project area concludes that the Amended Project Area meets the
legal requirement of a predominately urbanized area, with over 80% of the Area falling
within the category.
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Ms. Haddox stated that the Final Environmental Impact StatementlEnvironmental Impact
Report (FEISIEIR) prepared for the Stillwater Business Park (Park) was adopted by the City
Council at its meeting of April 18, 2006. She advised that a mitigation and monitoring plan
was included with FEISIEIR and after implementation of the mitigation measures, all
potentially significant impacts are expected to be mitigated to a less than significant level
with the exception of temporary air quality impacts associated with project construction
activities. She added that a Statement of Overriding Considerations was also adopted by the
City Council at that time. Ms. Haddox entered into the record the FEISIEIR and the
associated Mitigation Monitoring Plan.
Ms. Haddox summarized the 2006 Amendment to the Redevelopment Plan as set forth above
and added that similar to the original Plan, the Amendment authorizes receipt and use of tax
increment revenues (a minimum of 20% to be set aside to fund low- to moderate-income
housing pursuant to Health and Safety Code Section 33000 et seq.) for affordable housing
outside the Project area and that the Amendment establishes new time frames that apply to
the Added Area only. She emphasized that all elements of the original plan, including its
associated time lines, remain unchanged. She submitted the Amendment into the record.
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Ms. Haddox recommended that the City Council adopt a resolution finding that the use of
taxes allocated from the Added 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 Project; and that an ordinance be offered for first reading approving and
adopting the First Amendment to the Redevelopment Plan for the SHASTEC Redevelopment
Project and that the full reading be waived.
City Clerk Strohmayer advised that no protests were received.
Mayor Murray determined that no one present wished to address this matter.
MOTION: Made by Council Member Dickerson, seconded by Council Member Stegall,
closing the public hearing regarding the 2006 Amendment to the Redevelopment Plan for the
SHASTEC Redevelopment Project.
The Vote: Unanimous
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210
MOTION: Made by Council Member Poh}meyer, seconded by Council Member Mathena,
adopting Resolutio~ No. 2006-182, a resolution of the City Council ofthe City of Re<lding,
fInding that the use of ta'xes allocated froIll the Amendment to the SHASTEC
Redevelopment Project for the pUfpose of improving and increasing the community's supply
of low- and moderate-income housing outside the Project area will be of benefit to the
Project.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
\
Council Members - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
Council Members. - None
Council Members - None
Counci~ MeIl)be],"S - None
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Resolution No. 2006-182 is on file in the Office of the City Clerk.
Council Member Mathena offered Ordinance No. 2373 for first reading, an ordinance ofthe
City Council of t~e City of Redding adopting the First Amendment to the Redevelopment
Plan for the SHASTEC Redevelopment Project.
MOTION: Made by Council Member Mathena, seconded by Council Member Pohlmeyer,
that the full reading of Ordinance No. 2373 be waived, and that the City Attorney be
instructed to read the ordinance by ~it1e only. The Vote:
AYES: Council M;embers - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
NOES: Council M~mbers - None
ABSTAIN: Council Members - None
ABSENT: Cpuncil Members - None
At the hour of 8:04 p.m., V~ce Mayor/Agency Chair Dickerson adjourned the Special
Meeting of the Redding Redevelopment Agency.
UPD~TE qN MAJOR PROJECTS - Cypress Bridge Replacement Project
(A-050-0~0 & S-070-050-050)
Engineering Project Coordinator McClain advised that during the pal:lt year, the I
Enviro.nmental Impact Report (EIR) prepared for the Cypress Bridge ReplacementProject
was approved and permits' received moving the Project toward construction in April 2007.
Mr. McClain stated that there are still some issues to be completed such as fina,l plans,
specifications, and acquisition of rights-of-way which are in proces,s. Following those items,
he, advised that tp.e California Transportation Allocation Commission approval of State
Transportation Improvement Plan (STIP) ~nds mustbe allocated for the construction phase
of the Project. At that point, b.id documents can be drawn and circulated with the award of
bid some time in February 2007. Construction is expected to be completed in December
2010.
Mr. M~Clain stated that the Construction Phase budget is $63,169,000 and the .construction
cost estimate is approximately $62,500,000. The estimate appears to be realistic and should
encompass administration and inspection fees as well as a contingency fund.
Mr. McClain provided drawings of the' proposed Project and pointed out s~veral of the
aesthetic elements. He noted that the water features h~ve been removed from p~ans because
tht1 Bridge pesign Te~m felt the river should be the water feature. .He added that the
aesthetic elements would be funded,almost entirely through the Highway Bridge Program
which allqws 5 % for aesthetic 'enhancements for a project.
In response to Mayor Murray, TransportatioRand Ep.gineering Director Tippin, advised that
because time is ofthe essence, it was believed that this presentation would bring to light any
deviations the City Council might want to include in the final design. ,He stated tl;1at staff
adhered to earlier concerns the City Council had.on design elements, and additional design
elements could serve as Additive Alternates during the bid phase which Council could
choose or reject as the project moves forward.
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Cquncil Members Mathena, Pohlmeyer, and Stegall supported the design of the Bridge,
particularly tl;1e aesthetic elements.
No action was required on this informational item.
10/3/2006
211
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UPDATE ON MAJOR PROJECTS - Stillwater Business Park
(A-050-080 & E-050-500)
Assistant City Manager Bachman related that the Final Environmental Initial Study and
Environmental Impact Report (FEIS/EIR) was approved for the Stillwater Business Park
project and currently staff is fully engaged in the engineering design phase. Requests have
been made for additional federal funding and the Sanders property purchase is now in
escrow. Mr. Bachman stated that the City Attorney's Office has responded to a lawsuit based
on California Environmental Impact Act (CEQA) issues. He said staff has submitted the
Department ofFish and Game 404 Permit Application, the Biological Opinion Application,
the Water Quality Permit Application, and the Streambed Alteration Permit Application. He
added that contracts for rights-of-way are in process and SHASTEC funding in the amount
of $10 million is nearing completion. Mr. Bachman also pointed out that preparation of the
Environmental Assessment for the Federal Aviation Administration (FAA) property release
is underway, the Airports Land Use Commission (ALUC) application, the Local Agencies
Formation Commission (LAFCO) pact, the Land Use application, the Economic
Development Agency Grant application, General Fund financing, and staff is working with
potential tenants.
Mr. Bachman advised that an "open house" for the project, as requested by the City Council,
is planned for late this month to allow the public to view the area, construction is projected
to begin in Spring 2007, with the Park opening for business by mid-2008.
No action was required on this informational item.
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RESOLUTION - Amending City Council Policy No. 601 - Assessment District Policies, by
adopting Land Secured Financing Policies and Procedures
(A-050-060-555 & A-170)
Assistant City Manager Bachman explained that new Land Secured Financing Policies and
Procedures will provide two types of land secured financing, assessment districts and
community financing districts (also know as Mello Roos Districts) which, in turn, will
provide greater flexibility. He related that the new policy follows the guidelines set forth in
publications from the California State Advisory Commission. He pointed out that this policy
will provide complete and major infrastructure for new development on a pay-as-you-go
basis, and eliminate City funding for that type of development.
Mr. Bachman pointed out that the new policy will:
1. Identify the range of public facilities and services considered for land-secured
financing
2. Defme the application process for district formation and financing, including the
requirement that all costs for formation be borne by the applicant
3. Establish standards for review of economic viability, credit quality, and security to
ensure payment of assessments and/or special taxes
4. Limit the combined maximum rate of special taxes, ad valorem taxes, and
assessments on properties used to secure the debt
5. Define the terms and conditions of bond issuance
6. Define types and requirements of necessary agreements between the City and
applicants
7. Define the requirement for disclosure to affected property owners of special taxes and
assessments
8. Establish appraisal criteria which will be used to establish minimum value-to-lien
ratios for assessment districts and community facility districts (CFD).
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Mr. Bachman provided some points of the proposed policy:
1. Require that a petition to form an assessment district meet legal thresholds
2. Eliminate the Loan Committee and provide a Financing Team (to include only City
staff),
3. Provide that improvements may be owned by the City or other entities, that all
. assessment liens/debt be paid off when new debt is issued for same properties,
4. Eliminate the phasing plan agreement,
5. Use a standard debt service language,
6. Eliminate the language indicating the City may advance funds to cover debt service,
and
7. Current language indicating that the City may accept property through title transfer
rather than foreclosure was omitted.
10/3/2006
212
Mr. Bachman recommended that a resolution be adopted amen,ding City Council Policy No.
601 and adopting "Policies and Procedures for Land-Secured Financing."
In response to Council Member Stegall, Mr. Bachman explained that the proceedings are
technical ion nature, and it is reco~t:p.ded that only those with expertise in the process be
appointed to the FiI!ancing Team to save time and resources.
Mayor Murray believed it inappropriate for Development Services Director Hamilton to
select appointees to t~e F~nancing Team. Mr. Hami~ton respondeq that most proposals
brought before the T~am will be initiated by the Development Services Department and that
Team will include staff from th~ Fi,nance Department and the City Manager's Office as well I
as other who will provide support.
Mr. Bachman suggested that as an alternative, the City Manager be authorized to appoint the
Financing Team.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Mathena,
adopting Resolution No. 2006-:,183 a resolution of the City Council of the City of Redding
amending City Council Policy No. 601 and adopting the modified "Policies and Procedures
for Land-Secured Fina~cing" to state that the City Manager will select a Financing Team
(Section ill. C).
Th,e Vote:
AYES:
NOES:
ABSTAIN:
. ABSENT:
Council Members - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
Council Mymbers - None
Council Members - None
CQullcil Members - None
Resolution No. 2006-183 is on file in the Office of the City Clerk
. .
FINAL RECOMMENDATI~N - Affordable Housing Funds (Lowe's)
(L-O 10-005)
City Manager St~rman recalled that during the entitlement process to allow development of I
the Lowe's Home Improvement Store (1200 E;ast ~ypress Avenue), they agreed to contribute
$1 million to the City as an afford~ble housing mitigation fee. At the City Council meeting
of April 18,2006, O,mncil directed the Community Development Advisory Committee
(CPAC) to study t~e issue and make recommendations and/or review the Requests For
Proposals on how to best utilize the funds. At the recommendation of CDAC, C~uncil
authorized staff tq invite Habitat for Humanity Shasta Cascad.e (Habitat), the, Community
Revitalization and Development Corporation (CRDC), Simpson Housing Solution
(Simpson), Providence International Foundation (Providence), and LINC Housing
Corporation (LINC) to submit proposals for consideration on projec,ts utilizing the $1
million.' Habitat', Providence, and CRDC were the only agencies to submit proposals for
evah.lation and, ~fter review, CJ?AC recoml!lended that an Affordable Housing Fund be
created and administered by the Shasta Regional Community Foundation with the first
recipient being Habitat through a Memorandum of Vnderstanding.
Mr. Starman explained that following discussions with the parties involved, it became
apparent that the proposal was not viewed in the same context by everyone concerned, and
he recommended that the matter be tabled to a future meeting so that a consensus could be
reached.
David Rutledge, ChiefFin3;ncial Officer and S~cretary for the Community Revitalization and
Development Corporation (CRDC) and Vice-President of the California Council for
Affordable Housing, supported the' formation of an affordable housing trust fund, but
expressed concern at the lack of rules or regulations surrounding distribution of the funds to
ensure equity.
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Ji~ Westberg, Chair of Providence International Fou~dation, advised that his Foundation is
in the pre-development stage for t~e Terrace Vis!a Apartments project on Railroad Avenue
th~t will provide 110 units of affordable housing for low- to very low- income households
while Habitat's project proposed only four affordable units. Healso pointed out that Habitat
assured CDAC that it could move forwarq with its project with or without the $1 million,
whereas the Providence project would require the additional funding or be forced to sell the
properties.
10/3/2006
213
David Williamson, Treasurer and Secretary of Providence International Foundation, believed
that the Providence Project provided a greater service to low-income families, but
acknowledged that the Project was based on contributions, not constructed to provide debt
service. He submitted a letter from the Affordable Housing Development COIporation, a
project partner, describing the project and the inability to provide low- and very-low income
rent if debt service must be included. .
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Patrick Moriarty, Chair of the Community Development Advisory Committee, urged the City
Council to support the CDAC recommendations and expressed regret that all proposals could
not be funded. He advised that CDAC did not provide the recommendation as a final
product, but as an advisory tool that could be used by the City Council with staff to work out
details and develop rules and regulations.
Mayor Murray did not believe that Habitat's proposal provided sufficient units. He did
support exploration of a revolving fund, and commented that original discussions did not
preclude for-profit organizations from submitting proposals.
Council Member Dickerson believed that the $1 million could be leveraged into several
million for affordable housing through the Affordable Housing Fund to provide many
housing units for low income families.
Council Member Pohlmeyer believed that Habitat's Theatre Square Project was a worthy
endeavor, but acknowledged that development of only four affordable housing units was an
inefficient use of the funds, and he supported the Affordable Housing Fund concept.
I
MOTION: Made by Council Member Dickerson, seconded by Council Member Pohlmeyer,
referring the Affordable Housing Funds issue back to staff for clarification of the proposal
and return with a report and recommendation for consideration at a future meeting.
The Vote:
AYES:
NOES:
ABSTAIN :
ABSENT:
Council Members - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
Council Members - None
Council Members - None
Council Members - None
At the hourof9:1O p.m., Mayor Murray declared the meeting in recess.
At the hour of 9:25 p.m., Mayor Murray reconvened the meeting.
I
SOUTH REDDING COMMUNITIES FACILITIES DISTRICT (CFD) FINANCING
PROPOSAL
(A-170-035 & A-170-035-002)
Development Services Director Hamilton recalled that early in 2005, the City Council
approved the Environmental Impact Report (EIR) prepared for the Shastina Ranch
Development located south of Rancho Road and west of AiIport Road. The EIR identified
needed traffic mitigation necessary to address impacts that would be created by future
development in this area. Since that time, other development proposals have been submitted
with a potential to develop an additional 402 units. Mr. Hamilton also recalled that at the
July 18, 2006, City Council meeting, the design for improvements to the Chum Creek
Road/Rancho RoadNictor Avenue intersection and the Rancho Road/ Alta Mesa Drive was
selected to comply with the Shastina Ranch Conditions of Approval (Chum
CreeklRanchoNictor Phase I Improvement Project). He said that the City Council also
directed staff to work on a proposal for a South Redding Mello-Roos Community Facility
District (CFD) to provide a funding mechanism for the improvements. To that end, he said
Palomar Builders and Premier Homes are proposing formation of a Mello-Roos CFDwhich
would generate approximately $15.5 million in bonded indebtedness that is sufficient to
cover construction costs anticipated to be in excess of $12 million. Mr. Hamilton added that
the CFD would also include the Schellinger Homes 140-unit project proposed for the area.
The annual special tax rates for homes would be $1,000 to $1,820 per home with a 2 %
annual escalation clause.
Mr. Hamilton recommended that the City Council direct staff to work on the proposal for a
South Redding Mello-Roos Community Facilities District subject to submittal of an
application for district formation and deposit of funds to cover the administrative services
necessary to complete the work. A report will be returned to the City Council for
consideration at a future meeting.
10/3/2006
214
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Mathena,
accepting the Report on the proposed South R~dding Mello-Roos Community Facilities
District (CFD) and directing staff to work on the proposal for a CFD subject to submittal of
an application for district formation and deposit of funds to cover the administrative services
necessary to complete the work.
The Vot~: Unanimous Ayes
ORDINANCE - Amending Redding Municipal Code (Code) Title 2, Administratio~ and
Personnel by adding Chapter 2.42, establishing the Redding Municipal Library and the
Library Advisory Committee, and amending other Chapters and Sections within the Code
to reflect. adl11inistratiop changes and conform, to departmental reorganizations I
(L-050~-080-600-244/C-I10-100)
City Att9rn~y I?uvernay recalled that at the City Council meeting of September 5, 2006,
Council approved an agreement with the County of Shasta authorizing the City of Re9ding
to take possession of and assume operati.onal responsibilities forthe new Redding Municipal
Library. In order for the City to operate the Library and to become a member of the North
State Cooperative Library Service, the City must adopt an ordinance amending: Tirle 2,
Administration and Personnel by adding Chapter 2.42 establishing the library pursuant to
State Education Code.
In addition, Mr. Duvernay explained that additional "housekeeping" measures must be
addressed within the existing Code to conform with recent restructuring and reorganization
instituted by the City Manager sucp as authority previously vested with the "Public V{ orks
Director" or the "Public Works Department" has been changed to reflect the appropriate
division or department.
Mr. Duvernay further advised that al,hough the Report to City Council dated Sep~ember 22,
2006, recomm. ends that RMC Section 2.04.260 (Appeal to Council by Aggrieved Persons)
. . " .
remain intact, this section is antiquated and pre-dates the ,Brown Act which requires all
bu~iness to be conducted openly and provides the public the right to address matters o~, and
not on the agenda. F<?r this reason, Mr. Duvernay recommended that Section 2.04.206 be
repealed.
I
Mr. Duvernay recommended that the City Council amend Red<,ting Municipal Code Titles,
Chapters, aQ.d Sections relat~ve to establishing the Redding Municipal Library, the Library
Advisory Committee, and to address "house-keeping amendments" to conform with
. . ' . " . I .
reqrganization and restructuring, and that RMC Section 2 .04.260 be repealed as noted above,
offer an ordinance for first reading, waive the full reading, and authorize publication of a
summary ordinance.
In response to Council Me~ber Mathena, Mr. Duvernay said that the permanent institution
of the public comment period at the beginning ofthe City Council meetings will be formally
adopted through the first reading and adoption of this ordinance.
CQuncil Member Stegall suggested that a Council liaison be 'lPpointed to the Library
Advisory Committee annually during the Mayor's liaison appointments.
Susan Morris Wilson, Executive Director for Hea\th Improvement Partnership of Shasta,
submitted a letter dated October 3,2006, asking the City Council to consider appointing
youth members to the Shasta County Library Citizen's Advisory Committee.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Mathena, I
approving amendments to various Titles, Chapters,and Sections of the Redding Municipal
Code (RMC) relative to establishing the Redding Municipal Library, the Library Advisory
Cqmmittee, "house-keeping amendments" to conform with the recent staff and duties
restructure.
The Vote: Unanimous Ayes
Council Member Pohlmeyer offer~d Ordinance No. 2374 for first reading, an ordinance of
the City Council of the City of Redding amending various Titles, Chapters, and Sections of
the Redding Municipal Code (RMC). adding Chapter 2.42-Redding Municipal Library
relative to establishing the Redding Municipal Library, the Library Advisory Committee, and
repealing RM C Section 2.04.260, amending Title 10, Title 13, Title 14, Title 17, and Title
18 of the RMC to conform with recent staff and duties restructuring.
10/3/2006
215
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Mathena,
that the full reading of Ordinance No. 2374 be waived, that the City Attorney be instructed
to read the ordinance by title only, and that the City Clerk be authorized to publish a
summary ordinance.
The Vote: Unanimous Ayes
I
RESOLUTION OF NECESSITY - Acquisition of electric distribution system facilities in
Annexation Areas 99-1 (East Cypress), 99-2 (Lake Boulevard), and 99-5
(Tarmac/Abernathy) from Pacific Gas & Electric Company
(E-090-020/A-150-256/A-150-257/A-150-259)
Assistant City Attorney Frediani provided highlights of the Report to City Council dated
September 25,2006, incorporated herein by reference, recalling that the City annexed Area
99-1 (East Cypress) in June 2000, including electrical facilities owned by Pacific Gas &
Electric (PG&E), serving five residential customers. In September 2000, Area 99-2 (Lake
Boulevard) was annexed to the City with electrical facilities serving commercial
developments, two trailer-home parks, and two RV parks, and also Area 99-5
(Tarmac/Abernathy), with electrical facilities consisting primarily of overhead distribution
facilities. With the certification by the Local Agency Formation Commission (LAFCO) in
2000, Ms. Frediani said that customers in the annexed territories were legally entitled to the
same rights and duties as if the territory had always been part of the City, including electric
service. She advised that the City attempted to purchase the facilities from PG&E for
$11,000, but six years later, the City and PG&E have been unable to come to agreement
regarding the purchase. The current City offeris $209,000 but PG&E is requesting $412,998
including severance damage, 25 % premium for "going concern," $156,000 for exit fees, and
an undetermined amount for new customers. She stated that the 63 customers in those
annexed areas are understandably upset that they are not Redding Electric Utility (REU)
customers considering the much higher rates charged by PG&E.
I
Ms. Frediani explained that the California Public Utilities Commission (CPUC) provides a
process (California Public Utilities Code Section 1403) to acquire investor-owned utility
facilities and will establish the price to be paid. The City also has the option to use the
general eminent domain procedure (California Code of Civil Procedure Section 1230.010)
wherein a jury will determine the amount of adequate compensation. Staff is recommending
the use of eminent domain because there is a statutory presumption that the City's use of the
facilities is more necessary than PG&E' s use of those facilities and will be more expeditious
than a petition to the CPUC.
Mr. Frediani stated that certain findings must be made through adoption of a resolution of
necessity and those include:
a. The public interest and necessity require the proposed Project;
b. The proposed Project is planned or located in the manner that will be most
compatible with the greatest public good and the least private injury;
c. The property is necessary for the proposed Project.
I
She stated that the following additional findings are strongly recommended:
a. The offers required by Government Code Section 7267.2(a) together with the
accompanying statements of and summaries of the basis for the amounts established
as just compensation, were made to the owner or owners of record, which offers and
accompanying statements/summaries were in a form and contained all of the factual
disclosures provided by Government Code Section 7267.2(a);
b. All conditions and statutory requirements necessary to exercise the power of eminent
domain ("the right to take") to acquire the properties described herein have been
complied with by the City; and
c. The City has fully complied with the provisions of the California Environmental
Quality Act for the Project.
Ms. Frediani stated that the City has made the offers required by the Government Code and
satisfied all conditions and statutory requirements necessary to exercise the power of eminent
domain. She added that California Environmental Quality Act (CEQA) analysis is not
required for this type of property acquisition.
Ms. Frediani recommended that the Resolution of Necessity be adopted with the required
findings to acquire electric distribution facilities from PG&E for the purpose of electric
distribution by REU to residents in the Annexed Areas 99-1, 99-2, and 99-5.
10/3/2006
216
Ms. Frediani advised .that altho~gh PG&E chose not to appear at the Council meeting, a letter
was received dated September 29, 2006, disputing the legal and factual issues surrounding
the City's Government Code offer.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Mathena,
adopting Resolution of Necessity No. 2006- ~ ~4, a resolution of the City Council of the City
of Redding; to acquire real property owned by PG&E by eminent domain for electric
distribution in annexed areas Area 99-1, 99-2, and 99-5.
The Vote:
AYES: Council Members - Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
NqES: Council Mempers - None I
ABSTAIN: Council Mem1?ers - None
ABSENT: Council Members - None
Resolution No. 2006-184 is on file in the Office of the City Clerk
Resolution of Necessity - Acquire property for permanent and temporary right-of-way
easements located on Cypress Avenue for the Cypress Bridge Replacement Project, owned
by Louis J., Jr. & Diane M. Gerard
(C-070-01O & S-070-050-Q50)
Assistant City Att()rney Frediani provided highlights of the Report to City Council dated
September 25,2006, incorporated herein by reference, stating that a permanent ~asement for
street right-of-way and a temporary construction easement at Cypress Avenue and Park
Marina Drive from Louis J. qerard, Jr. and Diane Mr. Gerard, Trustees of the Gerard 1994
Revocable Living Trust, (property owners) is a necessary component of the Cypress Bridge
Replacement Project (Project). The Environmental Impact Report (EIR) prepared for the
Project and approved by the City Council on August 2, 2005, makes the assumption that
Cypress Aven~e must be widened to, provide east-west travel along the Cypress Avenue
corridor as traffic volumes increase. The proposed eas~ment will allow widening of Cypress
Avenue from Athens Avenue to tl).e Bridge to provide increased capacity and maint~in Level
of Service ~'C" (LOS) to the year 2025, and will decrease the number of vehicle accidents
currently experienced due to traffic backup. She related that without the Project the area I
would have a WS "E." She said that the existing bridge was determined to be functionally
obsolete by the Caltrans Structures Division and other public safety deficiencies were
identified in the main support girders, the sub-standard guard railing, and it lacks seismic
stability.
Ms. Frediani stated that the property interests for the easements have been appraised at
$133,300 and a formal o~ferwas presented to property owners on May 10,2006, which, to-
date, has not been accepted.
Mr. Frediani stated that certain findings must be made through adoption of a resolution of
necessity to include:
a. The public interest and necessity require the proposed Project;
b. The proposed Project is planned or located in the manner that will be most
compatible with the greatest public good and the least private injury;
c. The property is necessary for the proposed Project.
She stated that tbe following additional findings are strongly recommended:
a. The offers required by Government Code Section 7267.2(a) together with the
accompanying statements of and summaries of the basis for the amounts established
as just compensation, were made to the owner or owners of record, which offers and
accompanying statements/summaries were in a form and contained all of the factual
disclosures provided by Government Code Section 7267.2(a);
b. All conditions and statutory requirements necessary to exercise the power of eminent
domain ("the right to take") to acquire the properties described herein have been
complied with by the City; and
c. . The City has fully complied with the provisions of the California Environmental
Quality Act for the Project.
I
Ms. Frediani stated that a letter was received from Mr. Louis Gerard dated September 11,
2006, in response to the "Notice of Hearing Regarding the Intent of the City Council of the
City of Redding to Acquire Property by Eminent Domain" asking to be placed on the agenda
to address the City Council regarding the proceedings.
10/3/2006.
217
Ms. Frediani recommended that the Resolution of Necessity be adopted with the required
findings to acquire real property identified as Assessor's Parcel Number 102-4 70-004 located
at Cypress Avenue and Park Marina Drive for a pennanent easement for street right -of-way
and a temporary construction easement from Louis J. Gerard, Jr. and Diane M. Gerard,
Trustees of the Gerard 1994 Revocable Living Trust.
Transportation and Engineering Director Tippin provided overllead pictures of the area in
question and the proposed improvements.
I
Louis Gerard, property owner, advised that he did not oppose the Project or the amount
offered for the easements and that this was an amicable eminent domain proceeding. He
stated that his concern was for his tenant who has voiced concerns that he would not be able
to operate at the sight during construction. The tenant has been included in negotiations and
does not wish to accept the proceedings because of the loss of display and storage space. He
thanked City staff for their continued cooperation.
MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Dickerson,
adopting Resolution No. 2006-185, a resolution of the City Council of the City of Redding,
making findings to acquire real property identified as Assessor's Parcel Number 102-470-
004 located at Cypress A venue and Park Marina Drive for a pennanent easement for street
right-of-way and a temporary construction easement necessary for improvements to the
Cypress Bridge Replacement Project from Louis J. Gerard, Jr. and Diane M. Gerard, Trustees
of the Gerard 1994 Revocable Living Trust.
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. 2006-185 is on file in the Office of the City Clerk
I
ORAL REPORT - City Council Member attendance at conferences/meetings reimbursed at
City expense (Requirement of Assembly Bill 1234)
(A-050-060)
Council Member Stegall reported attendance at the Northern California Power Agency
meeting in Napa, California, on September 27-29,2006.
ADJOURNMENT
There being no further business, at the hour of 10:03 p.m., Mayor Murray declared the
meeting adjourned.
APPROVED
I
ATTEST:
;1,~<;~~<1
City Clerk
10/3/2006