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HomeMy WebLinkAboutMinutes - City Council - 2009-10-20 248 City Council, Regular Meeting Civic Center Council Chambers 777 Cypress Avenue Redding, California October 20, 2009 7:00 p.m. The Pledge of Allegiance to the Flag was led by Debbie Ivey. The Invocation was offered by Police Chaplain Debbie Ivey. The meeting was called to order by Vice Mayor Jones with the following Council Members I present: Dickerson, McArthur, and Stegall. Mayor Bosetti was absent. Also present were City Manager Starman, Assistant City Manager Tippin, City Attorney Duvernay, Development Services Director Hamilton, Transportation and Engineering Director Crane, Deputy City Clerk Mize, and Executive Assistant Stockwell. PRESENTATION - Mayor's Certificate of Recognition honoring Shasta Women's Refuge [A -050-060-600] On behalf of the City Council and staff, Vice Mayor Jones presented a Mayor's Certificate of Recognition to Maggie John, Executive Director of Shasta Women's Refuge, acknowledging 30 years of service to the community and their efforts to end domestic violence and sexual assault in Shasta County. Ms. John thanked the Council and community and requested continued support with ongoing prevention, education and support services. PRESENTATION - Recognition of Community Creek Clean-Up 2009 Leadership Team [P-050-460-700] Community Services Director Niemer and Dr. Randall Smith provided a PowerPoint presentation depicting the October 3rd Community Creek Cleanup project on the Sacramento River Trail. Certificates of Appreciation were given to: Dr. Randall Smith, Bob Brannon/Redding Police Department, Linda Burkhalter & Jimmy Galvan/California Conservation Corp., Steve Gaston/Rotary Club of Redding, Richard Murphy, Marion Schmitz, Sandy Babcock, and Sky Zaffarano & Francis Berg/Bureau of Land Management. I CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: ~pproval of Minutes - Special meeting of September 1,2009 and Regular meeting of August 18,2009 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.7, for check numbers 877409 through 878005 inclusive, ACH Transfer numbers 6245 through 6281, inclusive, and Wire Transfer numbers 1753 through 1765, inclusive, for a total of$7,734,120.30, for the period of October 1,2009, through October I 16,2009; and Payroll Register No.7 electronic deposit transaction numbers 265115 through 265948 and check numbers 542964 through 544934 inclusive, in the amount of $2,587,556.71 for the period September 20,2009, through October 3, 2009. TOTAL: $10,321,677.01 Second Amendment to Agreement - RBF Consultants for Salt Creek Heights Subdivision [L-Ol 0-075/S-1 01-135] It is the recommendation of the Development Services Director that the City Council authorize an amendment to the Agreement (C-4972) with RBF Consultants to extend the completion date of the contract for preparation of the Salt Creek Heights Subdivision Environmental Impact Report to March 19,2010, and to augment the budget by an additional 1012012009 249 $4,000 for additional photo simulations outside the original contract scope of work, which has been deposited with the City by the project applicant. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, Jones, and Stegall Council Members - None Council Members - McArthur Council Members - Bosetti I Monthly Financial Report - Redding Electric Utility - August 2009 [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 2009. Billed retail revenue through August was $98,309 or 0.5% above projections for the two-month period and wholesale power sales were $6,943,312 or 234.9 % above projections. On balance, operating revenue after' energy costs was $313 ,40 1 or 3,7 % above expectations. The combined costs for generation, purchases from the Western Area Power Administration, contracts, and the spot market were $6,760,994 or 47.8% above budget projections through August. Total operating expenses for July and August were $1,234,272 or 25.0% below budget. The Utility's net operating results for the first two months of the fiscal year are positive, as anticipated, and are $1,547,673 better than budget projections. Capital expenditures through August were $569,185 for revenue-funded projects and $6,154,722 for bond-funded projects, most of which is for construction of Redding Power Plant Generating Unit No.6. I Reallocation of Bid Award - Bid Schedule No. 4254, Purchase Manual Valves for the ReddingPower Plant Generating Unit No.6 project [B-050-1 00/E-120-150-67 6] It is the recommendation ofthe Electric Utility Director that the City Council reallocate Bid Schedule No. 4254 by line item, to Bakersfield Pipe and Supply of Redding, CA in the revised amount of$124,812.25; to James D. Acer Company ofCloquet, MN, in the revised amount of$13,606.59; and to lW. Wood Company of Redding, CA, in the revised amount of$75,834.48, for a revised total award amountof$214,253.32 to furnish and deliver manual valves for the Redding Power Plant Generation Unit No.6 project. Notice of Completion - Bid Schedule No. 4212 (Job No. 2326), Willis Street Area Sewer Replacement project [B-050-0201W -020-575] It is the recommendation of the Transportation and Engineering Director that the City Council accept the subject construction contract performed by Sunrise Excavating and Paving as satisfactorily completed and authorize the City Clerk to file a Notice of Completion with the Shasta County Recorder. Final cost was $245,401.10. Notice of Completion - Bid Schedule No. 4222 (Job No. 2110), Solid Waste Tipping Floor Repair project [B-050-020/S-020-650] It is. the recommendation of the Transportation and Engineering Director that the City Council accept the subject construction contract performed by Structural Group, Inc., as satisfactorily complete and authorize the City Clerk to file a Notice of Completion with the Shasta County Recorder. Final cost was $231,514. I First Amendment to Lease Agreement - Redding Aero Enterprises, Inc. [C-070-1 001 A-090-1 00] It is the recommendation of the Transportation and Engineering Director that the City Council approve the First Amendment to the Ground Lease Agreement (C-4098 ) with Aero Enterprises, Inc., to extend the term ofthe lease for the 60-foot by 334-foot aircraft parking apron at Redding Municipal Airport to September 20,2019. Lease Agreement Conversion - John and Judy Goold at Redding Municipal Airport [C-070-1 001 A -090-100] It is the recommendation of the Transportation and Engineering Director that the City Council approve converting the Lease Agreement (C-5219) with John and Judy Goold, dba Cornucopia Enterprises, to eliminate the gift shop and allow an expansion of the vending concession area at the Redding Municipal Airport. 1012012009 250 Award of Bid - Bid Schedule No. 4289, Two 38-Yard Commercial Front Load Refuse Trucks [B-050-100/S-020-100] It is the recommendation of the Municipal Utilities Director that the City Council: (1) reject the low bid from Western Truck Parts & Equipment Company (Western) as non-responsive; (2) award Bid Schedule No. 4289, for two 38-yard commercial front-load refuse trucks to Western in the amount of$471,800.48; and (3) authorize the sale of Fleet Numbers 01204 and 01194 as surplus equipment and the deposit of proceeds into the Solid Waste Utility's Rolling Stock Fund. A MOTION WAS MADE by Council Member McArthur, seconded by Council Member Stegall, that the foregoing items on the Consent Calendar be approved and adopted as recommended with the exception ofthe item approved by separate vote as indicated above. The Vote: AYES: NOES: ABSTAIN: ABSENT: I Council Members - Dickerson, Jones, McArthur, and Stegall Council Members - None Council Members - None Council Members - Bosetti PUBLIC HEARING - to consider a Development Agreement Amendment for Tentative Subdivision Map S-2-97, Avalon Subdivision by )effMora ORDINANCE - Approving first amendment to the Development Agreement with Jeff Mora re: Avalon Park Subdivision (a.k.a. North View Estates) S-2-97; and adoption of Addendum to a Mitigated Negative Declaration. [S-101-024] The hour of7 :00 p.m. having arrived, Vice Mayor Jones opened the public hearing regarding consideration ofthe First Amendment to the Development Agreement between the City and J effMora relative to the development known as Avalon Park Subdivision (a.k.a. North View Estates) S-2-97, located south of Oasis Road, north of Hwy 299E, and east of the future extension of Shasta View Drive. I The following documents are on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Affidavit of Mailing - Notice of Public Hearing Deputy City Clerk Mize advised that no protests were received. Development Services Director Hamilton provided an overview of the Report to City Council dated October 20, 2009, incorporated herein by reference, and recalled that in 2004, the City Council approved a Development Agreement with Jeff Mora granting a five-year extension ofthe Avalon Park tentative map approval (originally approved in 1998 and named North View Estates Subdivision) in exchange for the immediate dedication of right-of-way on the subdivision site to facilitate the ultimate extension of Shasta View Drive and connection between Collyer Drive and Oasis Road, which has been a top priority of the City for a number of years. He also recalled that the City conducted an alignment study in 2008 that identified a superior alignment to the one that Mr. Mora agreed to in 2004, and that Council passed a resolution approving the new alignment in August 2009. Mr. Hamilton advised that Mr. Mora applied for an extension of the Agreement and accompanying tentative map prior to its expiration date in August 2009, which was provided for in the original Agreement. I Mr. Hamilton stated that both parties will benefit from the proposed amendment since Mr. Mora has agreed to furore dedication of right-of-way on the subdivision property based upon the new Shasta View Drive alignment in exchange for a five-year extension of the Agreement and tentative map, reviewing details outlined in the staff report. Mr. Hamilton advised that the City Council must make the following findings relative to approving the Development Agreement: 10/20/2009 251 I 1. that the Addendum to the Mitigated Negative Declaration for the Avalon Park Subdivision is adequate for purposes of this action. 2. that none of the conditions under Section 15162 of the California Environmental Quality Act (CEQA) Guidelines are in evidence. 3. that the Development Agreement as proposed will have no significant effect on the environment. 4. that the Addendum to the Mitigated Negative Declaration and supporting documentation reflect the independent judgment and analysis of the City. 5. that the Development Agreement would be in the best interest ofthe City. 6. that the Development Agreement would promote the public interest and welfare of the City. Mr. Hamilton recommended that the City Council make the necessary findings, adopt an Addendum to the project's Mitigated Negative Declaration, and offer an ordinance for first reading to effectuate a First Amendment to the Development Agreement (C-3972) with Jeff Mora relative to the Avalon Park Subdivision Tentative Map. Vice Mayor Jones determined that no one present wished to address this matter and closed the public hearing. I A MOTION WAS MADE by Council Member Stegall, seconded by Council Member McArthur, per staff s recommendation: (1) determining that the necessary findings for approval are in evidence; (2) adopting an Addendum to the Mitigated Negative Declaration prepared for the project; and (3) offering Ordinance No. 2442 for first reading, an ordinance of the City Council of the City of Redding, effectuating the first amendment to the Development Agreement with Jeff Mora relative to the Avalon Park Subdivision Tentative Map as recommended by staff, waiving the full reading of the draft ordinance, and instructing the City Attorney to read the full title only. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, Jones, McArthur, and Stegall Council Members - None Council Members - None . Council Members - Bosetti City Attorney Duvernay read the full title of the uncodified ordinance. PUBLIC HEARING - Amendments to Redding Municipal Code Title 18 (Zoning), Rezoning Application RZ-4-09 ORDINANCE - Technical corrections to Title 18 (Zoning) Chapters 18.31, 18.33, 18.41, 18.42, and 18.60; amending Chapters 18.51 and 18.61 relating to Floodplains; and adopting an Addendum to the Mitigated Negative Declaration for the Zoning Code [L-010-230] Development Services Director Hamilton stated that the City's Zoning code is updated annually as typographical errors and/or inconsistencies are found during the course of doing business, noting that the Planning Commission had considered the item with no public comment and with a unanimous recommendation. The hour of 7:00 p.m. having arrived, Vice Mayor Jones opened the public hearing to consider several proposed amendments to the text of the Redding Municipal Code Title 18 (Zoning) under Rezoning Application RZ-4-09. I The following documents are on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing No protests were received. Vice Mayor Jones determined that no one present wished to address this matter and closed the public hearing. Development Services Director Hamilton reviewed proposed changes to the Zoning Code, as outlined in the Report to City Council dated October 20,2009. The City of Redding has determined that an addendum to the Mitigated Negative Declaration adopted for the Zoning Code is warranted, finding that: 10/20/2009 252 1. No substantial changes or new information of substantial importance exist and that there is no substantial evidence, in light of the whole record before the City, that the amendment proposal will have a significant effect on the environment. 2. ,The Addendum to the Environmental Impact Report, with its supporting documentation (Initial Study), reflects the independent judgment and analysis of the City of Redding. Mr. Hamilton recommended that the City Council adopt the Addendum to the Mitigated Negative Declaration adopted for the Zoning Code, offer Ordinance No. 2443 amending the Zoning Code for first reading by title only, and authorize the publication of a summary ofthe Zoning Code Amendments. I A MOTION WAS MADE by Council Member McArthur, seconded by Council Member Stegall: (1) adopting the Addendum to the Mitigated Negative Declaration RZ-4-09 adopted for the Zoning Code; (2) offering Ordinance No. 2443, an ordinance of the City Council of the City of Redding, amending Redding Municipal Code Title 18 (Zoning) Chapters 18.31, 18.33.020,18.41,18.42,18.51, and 18.60, all relating to cleanup and updating of the zoning code for first reading and waiving the full reading; (3) instructing the City Attorney to read the full title; and (4) authorizing the City Clerk to publish a summary of the Zoning Code amendments. The Vote: AYES: Council Members - Dickerson, Jones, McArthur, and Stegall NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - Bosetti City Attorney Duvernay read the full title of the uncodified ordinance. PUBLIC HEARING - to consider several proposed City-initiated Rezoning RZ-3-09 amendments to the City of Redding Zoning Map; and ORDINANCE - Adopting an Addendum to the Mitigated Negative Declaration prepared for the City of Redding Zoning Map and amendments to the City of Redding Zoning map, rezoning certain parcels to be consistent with their General Plan classifications [L-OI0-230] Development Services Director Hamilton highlighted proposed changes to the Zoning Map under Rezoning Application RZ-3-09, which relate to elimination of Zoning Map inconsistencies with the General Plan and zoning classifications correlating to existing land uses, as outlined in the Report to City Council dated October 20, 2009, relaying the Planning Commission's recommendation to adopt amendments to the Zoning Map. The City of Redding has determined that an addendum to the Mitigated Negative Declaration adopted for the Zoning Map is warranted, finding that: I 1. No substantial changes are proposed for the project and there are no new, significant environmental effects, or a substantial increase in the severity of previously identified effects, or any significant effects not discussed in the previous Mitigated Negative Declaration. 2 No substantial changes or new information of substantial importance exist and that there is no substantial evidence, in light of the whole record before the City, that the amendment proposal will have a significant effect on the environment. 3. The Addendum to the Mitigated Negative Declaration reflects the independent judgment and analysis of the City of Redding. I 4. Pursuant to Section 15074.l(b) ofCEQA, the City of Redding finds that the mitigation measures contained in the Mitigated Negative Declaration are sufficient and that the Project will not cause any potentially significant effect on the environment. The hour of 7:00 p.m. having arrived, Vice Mayor Jones opened the public hearing to consider proposed City-initiated Rezoning Application RZ-3-09 amendments to the City of Redding Zoning Map. 10/20/2009 253 The following documents are on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Affidavit of Mailing - Notice of Public Hearing No protests were received. Vice Mayor Jones determined that no one present wished to address this matter and closed the public hearing. I A MOTION WAS MADE by Council Member Stegall, seconded by Council Member McArthur: (1) adopting an Addendum to the Mitigated Negative Declaration prepared for the City of Redding Zoning Map under RZ-3-09, and (2) offering Ordinance No. 2444, an ordinance of the City Council of the City of Redding, adopting amendments to the City of Redding Zoning Map (rezoning certain parcels to be consistent with their General Plan classifications) for first reading, waiving the full reading, and instructing the City Attorney to read the full title. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, Jones, McArthur, and Stegall Council Members - None Council Members - None Council Members - Bosetti City Attorney Duvernay read the full title of the uncodified ordinance. I ORAL UPDATE ON MAJOR PROJECTS - Hilltop Drive Streetscape [A-050-080/ S-070-1 00] City Manager Starman introduced the Hilltop Drive Streetscape project, noting the highly successful and cooperative efforts of Redding Electric Utility (REU), Redding Redevelopment Agency (RRA), and several hotel owners. Mr. Starman recalled that Phase 1 of the project had been completed several months ago, which included streetscape improvements of asphalt, driveways, sidewalks, and medians. Mr. Starman introduced REU Energy Services Manager Keener, who provided an update on Phase 2, which included relocation of overhead electric power lines. Mr. Keener reported that the first meeting regarding this project was approximately six years ago, when the City Manager and a number of business owners discussed enhancing Hilltop Drive. He noted that Hilltop Drive is one of Redding's most traveled streets and has immediate access to Interstate 5 on and off ramps. He showed a slide presentation of work completed with commentary detailing dates, other agencies' and contractors' roles, and the process of under grounding electric and telephone lines. Mr. Keener expressed anticipation that all remaining poles would be removed over the next three-to- four weeks and relayed that the Hilltop Hotel Business Improvement District recently voted for a two-to-three year extension to provide funds for the match with RRA. He announced that special Christmas activities will be held on December 13th and 19th on Redding's "hospitality boulevard". No action was taken on this information only item. I AMENDMENT REQUEST TO DEVELOPMENT FUNDING AGREEMENT - James McDilda re rehabilitation of rentals located at 2532-2586 Wilson Avenue [G-I00-075] Assistant City Manager Tippin recalled that a Development Funding Agreement (DF A) (C- 5109) with James McDilda for the rehabilitation of rentals located on Wilson Avenue was approved on October 21,2008. Mr. Tippin informed Council that on September 24,2009, Mr. McDilda submitted a written request asking the City to modify the terms of the agreement to allow funds to be disbursed in advance of the work being completed. Mr. Tippin recommended that the City Council deny Mr. McDilda's request, citing a number of . reasons as detailed in the Report to City Council dated October 20,2009. James McDilda stated opposition to points in the staffreport as follows: (1) the 13 additional units required in the DF A have been completed and rented for over a year, therefore no additional monies are needed to meet this requirement of the contract; (2) the U.S. Department of Housing and Urban Development (HUD) dictated new precedents setting the reimbursement method for construction costs and required a Letter of Credit (LOC) to be 10/20/2009 254 posted by the borrower, which can be drawn upon at any time to complete the project; (3) the threat of foreclosure is attributable to the vacancy of 12 apartments for over a year and lack of rental income; (4) past precedent on the four other projects of this type that he has completed allowed for additional funds to be borrowed for cost overruns and contingencies, and that he understood the HUD-required LOC was intended to replace this component of the contract; (5) disagrees with staffs position that having remaining funds under the DFA would make it easier to secure funds from the LOC and that the funds were intended to be used for this project and should be made available as needed; (6) the remaining 13 percent of the project can be completed with the remaining funding designated for the project, along with $17,000 in anticipated rebates from Redding Electric Utility; and that (7) Geneva Real Estate is aware that they would have to tender any monies necessary to complete the project. Mr. McDilda requested that Council approve his request for modification to the D FA, direct staff to make an inquiry to clarify HUD' s intended use of the required LOC, and extend the contract to allow him to find another funding source should they deny his request to amend the DFA. I Mr. Tippin stated that a requirement to securitize building projects is not new and illustrated the point by referring to public works contracts that require performance and payment bonds. He informed Council that Mr. McDilda asked City staff to contact HUD and request a variance regarding the use of a Letter-of-Credit in lieu of a bond for this project, which was granted due to the City's solid performance record in meeting all requirements on past HUD projects and allowed the City to deviate from HUD's requirements. Mr. Tippin reminded Council that Letters-of-Credit are typically required from private developers so that entitlements can be completed after final maps are recorded, i.e., roads, sewers, etc., and are in place to enable the City to hire a second contractor to complete work in case of default by a deve1operlbuilder, and are not intended to finance completion of a project. City Attorney Duvernay confirmed that both bonds and LOC securities are not accessible unless/until a contractor is in default or has been terminated from the contract due to failure to perform and a replacement contractor must be paid to complete the work. Mr. McDilda asserted that intended use ofthe LOC was not stated to him in this way, that Geneva was aware of all project conditions, and opined that there is enough money in reserve to clear $47,000 in liens and finish the project, and disagreed with the interpretation of how the project financing was presented to him. I In response to Council Member Jones' inquiry regarding Mr. McDilda's request for an extension of time, Mr. Tippin stated that an extension until the end of October had already been granted to allow Council to make a determination and for staff to execute such. He advised Council that a time extension is permissible and detailed specific conditions and deadlines that must be met to access the project's Letter-of-Credit; further opining that no precedent would be set by allowing this project an extension. Council Member Dickerson opposed investing additional money in this project, regardless of extensions. Council Member Stegall stated concern about the project, but was willing to consider a time extension, stating she would entertain Mr. McDilda's request for 90-120 days with a firm action plan to access the LOC after that period of time. Responding to Council Member Jones, Mr. McDilda affirmed his ability to rent the completed apartments and bring in a partner to solve the project's cash flow issues. Council Member McArthur favored an extension of 60-90 days and opposed disbursing funds prior to the completion of work. I A MOTION WAS MADE by Council Member Stegall, seconded by Council Member McArthur, denying the request to amend Development Funding Agreement (C-5109) with James McDilda by advancing funds prior to work being completed for the substantial rehabilitation Qf 11 affordable rentals owned by Mr. McDilda and located at 2532-2586 Wilson Avenue, but granting a 60 day extension to allow him to secure funding to complete the project and review its status at the end of that time period. 10/20/2009 255 The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Jones, McArthur, and Stegall Council Members - Dickerson Council Members - None Council Members - Bosetti I ORDINANCE -Amending Redding Municipal Code Title 6 (Business Taxes, Licenses and Regulations) by Adding Chapter 6.12 (Medical Marijuana Cooperatives and Collectives) [M -020/C-l 00-1 00/L-070] Police Chief Hansen reviewed the Report to City Council dated October 20, 2009, incorporated herein by reference, recommending that the City Council approve the proposed amendments to Redding Municipal Code Title 6 (Business Taxes, Licenses and Regulations) by adding Chapter 6.12 (Medical Marijuana Cooperatives and Collectives) relating to permitting and regulation of medical marijuana cooperatives and collectives, and find that the proposed action is not subject to the provisions of the California Environmental Quality Act (CEQA). - Development Services Director Hamilton explained that CEQA regulates changes to the physical environment resulting from a project, which is not applicable to the proposed amendments to Title 6 that relate to business operations in existing facilities and do not qualify as a project under CEQA definitions. I Glen and Linda Wulfestieg, Patty Heinz, Tina Hitchcock, Randy Bright, Jesse Armstrong, Setphen Gasparas, Balwinder Singh Jnooty, Zachary Kamla, Danielle Pendergast, Jess Brewer, Dan Mclind, Lynn Denton, Hillary Criner, Gray Royal, Dennis Bochert, and Matt Smith favored regulation by ordinance citing the following reasons: with no regulation, dispensaries can be opened by schools and expose children/youth to this type of environment; unsafe driving behavior; negative effects on adjacent businesses; smells; parking lot issues; fears the drug scene; use of profanity; fire danger; potential for unlawful activity; pricing regulation; legal operations to meet valid needs; common walls. cause problems; safe/secure access for legitimate use for medicinal purposes is needed; crime is reduced when cities have safe access to needed marijuana; a lot of people are being helped; need is legitimate; preferred oversight of operations by other than police department; suggested that medicine be dispensed from physician's office or pain management practices; and, to stop exploitation. Lita Coulthart, Prank Augusta, Andrea Buczek, and Arnaldo Rosaria opposed the proposed ordinance citing the following reasons: people should have the personal freedom to grow their own medicine; the proposed ordinance is too strict; having one person with absolute authority leaves too much room for error; and it validates use of marijuana. Police Chief Hansen noted some consensus from speakers expressing interest in establishing regulations to ensure legitimate, well-run, and well-managed businesses in the community. I Council Member Dickerson reiterated that the ordinance's intent is to limit abuse of marijuana. He expressed his overall support of the proposed ordinance and suggested that (1) applicants for collective/cooperative permits be tested on knowledge of pertinent laws prior to receiving a permit; (2) ordinance language in 6.12.040, Section A be modified to clearly state that a background check will be required on all responsible parties/applicants; (3) that collectives/cooperatives be required to operate in a building that does not share a common wall with another business; (4) ordinance language in 6.12.090, Section J2 be modified to clearly state when members of cooperatives must leave the site; (5) physicians be prohibited from owning a collective/cooperative; (6) member records be reviewed by the permitting agency, to ensure that everyone getting medical marijuana is authorized by a physician to do so; and (7) windows of collectives/cooperatives be clear of obstruction for security and safety reasons. Council Member McArthur requested clarification on proposed language allowing unrestricted access to a collective/cooperative during normal hours of operation and how HIPP A privacy laws will be safeguarded. In response, City Attorney Duvernay stated he would do additional research into allowable exemptions and report back to Council. Council Member Stegall stated that once an ordinance is adopted, a review should be conducted in a timely manner and questioned how "grandfathered" sites will be affected. In response, City Attorney Duvernay explained that the "grandfather" clause applies to location 10/20/2009 256 only; that new criteria cannot be applied to existing businesses because they are considered to be legal, non-conforming land uses; and confirmed that existing collectives/cooperatives will have to meet all other ordinance requirements to operate. Vice Mayor Jones asked for further discussion on the conflict between federal and state law on this issue. In response, Police Chief Hansen opined that California law was carefully crafted so it did not legalize marijuana and only exempted specific persons from prosecution, thereby upholding federal law while allowing authorized medicinal use of marijuana and believed the local ordinance would coincide with state law. Mr. Jones declared his unwillingness to adopt a local ordinance that is in conflict with federal law. City Manager Starman suggested that Council could review, amend, and offer the proposed ordinance for first reading this evening or return it to staff for amending and return at a later meeting. I In response to Council Member McArthur, Mr. Starman commented that a task force or review committee might be an appropriate way to review the effectiveness of the ordinance in six to twelve months. After a ten minute recess, City Attorney Duvernay outlined the following changes to the draft new ordinance attached to the Report to City Council dated October 20,2009: 1. Page 4, Section 6.12.030 A, related to applicant background checks for all responsible persons shall be changed to read "Prior to initiating operations, and as a continuing prerequisite to conducting legally valid operations, all responsible persons or the responsible entity wishing to operate...". 2. Page 9, Section 6.12.090 A, related to prohibited locations shall be changed to read "4. In any structure sharing common walls with another business." 3. Page 10, Section 6.12.090 C, related to security and lighting shall be changed to read "4. All windows shall remain unobstructed and provide clear visibility into the cooperative/collective during business hours." I A MOTION WAS MADE by Council Member McArthur, seconded by Council Member Stegall, to (1) offer Ordinance No. 2445 for first reading as presented in writing and augmented by changes put into the record by the City Manager and the City Attorney, amending Title 6 (Business Taxes, Licenses and Regulations) by adding Chapter 6.12 (Medical Marijuana Cooperatives and Collectives) relating to permitting and regulation of Medical Marijuana Cooperatives and Collectives; (2) waive the full reading; and (3) authorize the City Clerk to publish a summary ordinance. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, McArthur, and Stegall Council Members - Jones Council Members - None Council Members - Bosetti City Attorney Duvernay read the full title of the uncodified ordinance, noting augmentation as outlined above. PLANNING COMMISSION - Council referral for possible preparation of an ordinance amending Redding Municipal Code Title 18 (Zoning) relating to cultivation of medical marijuana on property within the city limits [M -020/L-0 1 0- 500] Development Services Director Hamilton recalled that accepted practice for establishing standards regulating the use and physical development of property is to develop zoning criteria that passes through the Planning Commission to look at associated issues, including potential nuisance problems. Mr. Hamilton stated that cultivation of medical marijuana poses some unique aspects, including a pungent odor when budding, that have prompted complaints. I Mr. Hamilton recommended that the City Council refer the issue of medical marijuana cultivation on property within the city limits to the Planning Commission for consideration and recommendation to the City Council on appropriate regulatory approaches, which could be accomplished by an ordinance crafted to establish basic zoning regulations for cultivation 10/20/2009 257 with the purpose of preventing the creation of nuisances and reducing the potential for criminal activity in residential areas. Mr. Hamilton cited three specific amendments to Redding Municipal Code Title 18 for consideration: I 1. Codification of a use definition for "medical marijuana collectives and cooperatives. " 2. Identification of the specific commercial zoning districts where dispensaries for medical marijuana collectives and cooperatives may be located. 3. Establishment of basic development standards for outside and inside cultivation of medical marijuana with the City. Council Member Dickerson requested that the Planning Commission also consider issues associated with processing (drying) large amounts of harvested medical marijuana. A MOTION WAS MADE by Council Member Dickerson, seconded by Council Member Stegall, to refer preparation of an ordinance amending Title 18 (Zoning) of the Redding Municipal Code referring to cultivation of medical marijuana on property with the city limits to the Planning Commission. The Vote: AYES: Council Members - Dickerson, McArthur, and Stegall NOES: Council Members - Jones ABSTAIN: Council Members - None ABSENT: Council Members - Bosetti I INTERIM URGENCY ORDINANCE .;. Imposing a temporary moratorium on the establishment of any medical marijuana dispensaries pursuant to Government Code Section 65858 [M-020] City Attorney Duvernay relayed that state zoning laws allow city councils to impose temporary moratoriums on certain uses as long as certain findings can be made. He stated that, as confirmed by earlier testimony given at this meeting, he believes there is sufficient evidence to support a 45 day moratorium on establishment of any new medical marijuana collective or cooperative in the city. Mr. Duvernay recommended that the City Council introduce and adopt an interim urgency ordinance by waiver of full reading and introduction by title only imposing a temporary moratorium on the establishment of any medical marijuana dispensaries pending further consideration of zoning regulations by the Planning Commission and implementation of business-permitting regulations as deemed appropriate by the City Council. A MOTION WAS MADE by Council Member Dickerson, seconded by Council Member McArthur, to introduce and adopt Urgency Ordinance No. 2446 imposing a temporary moratorium on the establishment of medical marijuana dispensaries in the City for a period of 45 days to allow the City Council time to study and consider enactment of zoning regulations, and declaring the urgency thereof, and waiving the full reading. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, Jones, McArthur, and Stegall Council Members - None Council Members - None Council Members - Bosetti City Attorney Duvernay read the full title ofthe adopted ordinance. I ORDINANCE - Amending Redding Municipal Code Chapter 2.04 to change the start time for regular council meetings and to codify other rules related to public comment to the City Council [A-050-060/C-II0-I00] City Attorney Duvernay noted that Council has seen this ordinance twice already and highlighted the change to language related to the procedure for addressing Council at meetings found in Redding Municipal Code 2.04.170. Gary Cadd expressed appreciation to the Council and the City Attorney for modifying the rule related to accepting speaker cards. 10/20/2009 258 A MOTION WAS MADE by Council Member Stegall, seconded by Council Member McArthur, to offer Ordinance No. 2447 for first reading, amending Redding Municipal Code Chapter 2.04 to change the start time for regular council meetings and to codify other rules related to public comment to the City Council and to waive the full reading. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Jones, McArthur, Stegall Council Members - Dickerson Council Members - None Council Members - Bosetti City Attorney Duvernay read the full title of the uncodified ordinance. I RESOLUTION - Adopting amendments to the Executive Management Pay- For-Performance Salary Plan adding one position to Electric Utility (Electric Utility Analyst); and RESOLUTION. - Adopting the 8th Amendment to Budget Resolution No. 2009-61 appropriating funds [P-l 00-050-1 00/B-130-070] Personnel Director Speer requested that the City Council approve amendments to the Executive Management Pay- For- Performance Salary Plan removing the Settlements Analyst classification and creating an Electric Utility analyst classification at the same salary range, adding one position to Redding Electric Utility (Electric Utility Analyst), and appropriate funds for same, as outlined in detail in the Report to City Council dated October 20,2009. A MOTION WAS MADE by Council Member Stegall, seconded by Council Member McArthur, to adopt Resolution No. 2009-185, a resolution ofthe City Council of the City of Redding, approving amendments to the Executive Management Pay- for- Performance Salary Plan and Budget and adding one Electric Utility Analyst position to Redding Electric Utility; and to adopt Resolution No. 2009-186, a resolution of the City Council of the City of Redding, approving and adopting the 8th amendment to Budget Resolution No. 2009-61, appropriating $80,000 for fiscal year 2009-10 and $120,000 for fiscal year 2010-11 (for a total of $200,000) for the addition ofthe Electric Utility Analyst to manage gas prepay tax compliance issues and monitor regulatory compliance. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, Jones, McArthur, and Stegall Council Members - None Council Members - None Council Members - Bosetti I Resolution Nos. 2009-185 and 2009-186 are on file in the Office of the City Clerk. CLOSED SESSION At the hour of 10:56 p.m., Vice Mayor Jones announced that Council would adjourn to closed session to discuss: Pursuant to California Government Code Section 54957.6: CONFERENCE WITH LABOR NEGOTIATOR Designated Agency Representative: Personnel Director Speer Employee Organization: Service Employees International Union (SEIU) - Clerical Technical and Professional Employees Unit [P-I00-050-124] Pursuant to California Government Code Section 54956.8: CONFERENCE WITH REAL PROPERTY NEGOTIATOR Property: 1613, 1625, and 1637 Pine Street (Assessor's Parcel Numbers 101-620-030, -031, and -032) Agency Negotiators: City Manager Starman and Assistant City Manager Tippin Negotiating Parties: City of Redding, Redding Redevelopment Agency, and Brent Weaver of Mercer Construction, LP Under Negotiation: Price and Terms [C-070-2001R-030-1 00-01 0] I REPORT OF CLOSED SESSION ACTION(S) At 11: 12 p.m., Vice Mayor Jones reconvened the Regular Meeting to open session and reported that the City Council had not taken any reportable action on either item. 1012012009 259 ADJOURNMENT There being no further business, at the hour of 11 : 13 p.m., Vice Mayor Jones declared the meeting adjourned. ATTEST: I Vice ~~!~ Deputy City Clerk I I 10/20/2009