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HomeMy WebLinkAboutMinutes - City Council - 2009-11-03 263 City Council, Regular Meeting Civic Center Council Chambers 777 Cypress Avenue Redding, California November 3, 2009 7:00 p.m. The Pledge of Allegiance to the Flag was led by Joe Machado. The Invocation was offered by Police Chaplain Ray Foust. I The meeting was called to order by Vice Mayor Jones with the following Council Members present: Dickerson and Stegall. Mayor Bosetti and Council Member McArthur were 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 Grimm. PUBLIC COMMENT [T -080] Pete Bret voiced concern about traffic flow in the City, specifically on Chum Creek Road. He asked for information on traffic signal timing and objected to the cumbersome process that is required to obtain this information. CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: I Approval of Minutes - Special meeting of August 31,2009, and Regular meeting of October 6,2009 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.8, for check numbers 878006 through 878379 inclusive, ACH Transfer numbers 6282 through 6331, inclusive, and Wire Transfer numbers 1766 through 1788, inclusive, for a total of$16,775,204.38, for the period of October 19,2009, through October 30,2009; and Payroll Register No.8 electronic deposit transaction numbers 266004 through 266840 and check numbers 544944 through 545046, inclusive, in the amount of $2,628,971.19 for the period October 4,2009, through October 17, 2009. TOTAL: $19,404,175.57 Treasurer's Report - September 2009 [A -050-100-600] It is the recommendation of the City Treasurer that the City Council accept the Treasurer's Report for the month of September 2009. Total Treasurer's Accountability $130,425,186.46 Total City of Redding Funds, Funds Held in Trust, 'and Funds of Related Entities $237,859,081.01 I ACR133 Report and Cash Reconciliation [F-205-095-650] It is the recommendation ofthe Finance Director that the City Council accept the ACR133 Report ,and the Proof of Cash Reconciliation for September 2009. Update on Major Projects and Project Status Report [A-050-080] It is the recommendation of the City Manager that the City Council accept the Project Status Report for October 2009. 11/3/2009 ;264 Notice of Completion - Bid Schedule No. 4209, Civil Infrastructure of Redding Power Plant Generating Unit No.6 [B-050-020/E-120-l50-676] It is the recommendation of the Electric Utility Director that the City Council accept the subject construction contract performed by Sierra National Construction, Inc. as satisfactorily complete andauthorize the City Clerk to file a Notice of Completion with the Shasta County Recorder. Final construction contract cost was $2,641,174.18. Resolution - Approving the Statement of Findings for the Oasis Road Interchange Improvement Project: Phase I; and authorize staff to prepare and circulate a public notice reflecting action; and prepare a Notice of Determination at the end of the public review period [G-030-110/S-050-420] It is the recommendation of the Transportation and Engineering Director that the City Council adopt Resolution No. 2009-187, a resolution of the City Council of the City of Redding, apprqving the Statement of Findings for the Oasis Road Interchange Improvement Project: Phase I; authorizing staff to prepare and circulate a public notice reflecting the City's action and to prepare a Notice of Determination at the end of the public review period, as applicable. I Notice of Completion - Bid Schedule No. 4248, (Job No. 2314), Browning Street Widening and Improvements Project [B-050-020/S-070-100] It is the recommendation of the Transportation and Engineering Director that the City Council accept the subject construction contract performed by Tullis, Inc. as satisfactorily complete and authorize the City Clerk to file a Notice of Completion with the Shasta County Recorder. Final cost was $240,143.36. Letter of Agreement - Serco Management Services, Inc. [A-090-l00] It is the recomm,endation of the Transportation and Engineering Director that the City Council replace Letter of Agreement C-3l8l between Serco Management Services, Inc., and the City of Redding with a new Letter of Agreement to better establish the responsibilities of Serco Management Services, Inc., and the City of Redding for reporting Airport surface conditions. I Accept Final Map and Authorize Subdivision Agreement - Highland Park Subdivision-Unit 1, (S-18-05), with J & S Highland Park, LLC and M.C.G., LP [S-101-l02] It is the recommendation of the Transportation and Engineering Director that the City Council: (1) authorize entering into a subdivision agreement with J & S Highland Park, LLC and M.C.G., LP; (2) authorize the Mayor to sign the subdivision agreement; (3) approve the Final Map for the Highland Park Subdivision, Unit 1 (S-18-05), located north of Mission De Oro Drive and west of Bodenhamer Boulevard; and (4) instruct the City Clerk to file the map with the Shasta County Recorder. A MOTION WAS MADE by Council Member Stegall, seconded by Council Member Dickerson, that the foregoing items on the Consent Calendar be approved and adopted as recommended. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, Jones, and Stegall Council Members - None Council Members - None Council Members - Bosetti and McArthur I Resolution No. 2009-187 is on file in the Office ofthe City Clerk. 11/312009 265 LETTER - Kent Dagg, Chief Executive Officer of Shasta Builders Exchange, regarding "Redding's Radical] 0 in '] 0" [A-050-060] City Manager Starman introduced Kent Dagg, Chief Executive Officer of Shasta Builders Exchange, and relayed that some discussion had occurred with Mr. Dagg, who desired to make a presentation to the City Council. I Mr. Dagg provided statistics and a PowerPoint presentation that included six suggestions, and proposed that the City of Redding consider radical solutions to business community issues. He stated that he had formed a committee to brainstorm ten ideas for Council's consideration in 28 days and requested City staff participation on the committee. City Manager Starman stated that he would like to see county-wide participation on the committee because economic difficulties affect neighboring cities and Shasta County, as well as the City of Redding. Following Council discussion, a consensus was reached that City Manager Starman and Assistant to the City Manager Clark would attend meetings of the "Redding's Radical 1 0 in , 1 0" committee and that a more detailed, formal proposal could be submitted for Council's consideration in 28 days. JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY At the hour of7:39 p.m., Vice Mayor/Agency Chair Jones convened the Special Meeting of the Redding Redevelopment Agency for a joint meeting with the City Council. I LETTER OF INTENT - Non-binding Letter of Intent to the Administrative Office of the Courts relative to a new courthouse in Redding [C-070-200/S-010/R-030-145-350] City Manager Starman recalled that the City has been working closely with the County of Shasta and the Administrative Office of the Courts (AGC) to determine a preferred location for a new courthouse in Redding from among 19 sites in the City and surrounding areas. Mr. Starman further recalled that in March 2009, a location in downtown Redding was deemed most suitable for conducting court-related business and specified property located on Oregon Street. Mr. Starman was pleased to report that the AOC tentatively selected the Oregon Street site as its preferred location. Mr. Starman relayed that the AOC expressed strong concern about losing state funding, in the amount of $212 million, due to delays caused by complex site development issues, as they have observed in other cases. Mr. Starman stated that the AOC requested that the City designate a viable alternative site to ensure that funding is not reallocated to another county. He reported that City property west of the Civic Center, currently used for a four- acre fast- pitch softball field and employee/overflow parking, was a viable alternative site. He affirmed that every effort would be made to locate the project on the Oregon Street site, that other sites have been researched and evaluated, and that the Civic Center property would be considered only as a last resort and would carry a stipulation requiring replacement of park land. I Mr. Starman described the proposed Oregon Street site, explaining that it is a complex site with several parcels and property owners; that it will require close partnerships between the County of Shasta, the Courts, the City, and the Redding Redevelopment Agency (RRA) to bring to fruition; and that it would be the most beneficial site for county operations, the legal community, downtown revitalization, and RRA. Mr. Starman displayed a parcel map and reviewed property ownership and related conditions. on the 16 properties that would require acquisition in order to develop the Oregon Street site, including one property owner who has indicated interest in a "friendly condemnation" for tax reasons. He also gave a brief description of the proposed building and parking areas. Mr. Starman outlined six items to be included in the proposed non-binding letter of intent: 1. RRA would confirm that it would be willing to work with private property owners on the concept of "friendly condemnation", which would require documentation, or 11/3/2009 11/3/2009 266 2. possibly a resolution from RRA, stating that the property is needed for a public purpose and that if owners had not willingly sold their property, the City would have been prepared to proceed with condemnation. "Friendly condemnation" allows a seller significantly more time to reinvest capital gains. RRA would confirm that it is willing to help the AOC purchase and assemble the seven private parcels in question. It is anticipated that the RRA would negotiate a purchase and sale agreement with each of the property owners and then immediately sell the property to the AOC. The AOC would ultimately be responsible for the final cost associated with acquiring the property(ies). RRA and the City would confirm their willingness to work with the AOC to assemble all of the individual parcels into one large parcel for the new courthouse. The City would confirm its willingness to consider abandoning the section of Oregon Street between Yuba Street and Butte Street in order to facilitate the new courthouse. The City would confirm its willingness to consider abandoning the alley between Oregon Street and Court Street that currently bisects the proposed site, which would include relocating overhead electric utility and six-inch sewer lines. The City would confirm its willingness to designate City-owned property located immediately to the west of City Hall as a potential back-up site for the new courthouse, if necessary. Mr. Starman stated that this site would be "a last resort", used only to prevent the loss of state funding for a new courthouse in Shasta County, and noted that the AOC and local judges are enamored with this site but have agreed to the Oregon Street site as a preferred location. I 3. 4. 5. 6. Mr. Starman recommended that the City continue to partner with the County of Shasta to advocate development of the Oregon Street site and that the City Council and the Board of Directors of the Redding Redevelopment Agency authorize the Mayor and the Chairman, respectively, to forward a non-binding Letter of Intent to the AOC relative to the development of a downtown location for a new courthouse for Shasta County. Judy Salter, Chair of Community Services Advisory Commission, 'strongly opposed development of the City-owned property west of City Hall for a new courthouse, because: removing active park space that promotes physical activity and overall health for the community is inconsistent with the Park, Trails, and Open Space Master Plan, and she opined that it cannot be replaced in the Parkview and adjacent neighborhoods, which is one of the most under-served quadrants in the community; it would be inconsistent and conflict with the master design of City Hall and the Library; and finally, it would be better for a courthouse to be located downtown due to the substantial positive impact it would have on downtown revitalization. I Charles Alexander supported a courthouse downtown, opining that it would facilitate compliance with SB3 75 by reducing traffic and carbon emissions and that offering too many back-up sites would weaken commitment to developing a downtown location. Gary Cadd voiced support for Mrs. Salter's comments and questioned the City Council and the City Attorney about a 4/5 vote requirement to proceed on any alternative use for the Civic Center property and park land use. City Attorney Duvernay confirmed that, similar to any necessary imminent domain action, formal action would require a 4/5 vote, but conceptual approval to consider the Civic Center site as an alternative and authorization of a non-binding letter of intent only requires a majority vote. Following Council discussion, I A MOTION WAS MADE by Council Member Dickerson, seconded by Council Member Stegall, supporting development of a downtown site for a new courthouse in Shasta County and authorizing the Mayor and the Chairman, respectively, to forward a non-binding Letter of Intent to the Administrative Office of the Courts as outlined by the City Manager. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, Jones, and Stegall Council Members - None Council Members - None Council Members - Bosetti and McArthur 267 At the hour of8:20 p.m., Vice Mayor/Agency Chair Jones adjourned the Special Meeting of the Redding Redeve~opment Agency. I MONTHLY FINANCIAL REPORT - Redding Electric Utility - September 2009 [B-130-070] Electric Utility Director Hauser reported that billed retail revenue through September was $61,502 or 0.2% above projections for the three-month period, which he considered significant given the current economy. Total wholesale sales for the period were $10,882,089 or 243.0% above projections. Overall, operating revenue through September came in at $11,048,297 or 33.2% above plan. The cost of energy during that period was $10,451,553 above plan. On balance, operating revenue after energy costs was $596,744 or 4.8% above expectations. The combined costs for generation, purchases from the Western Area Power Administration, contracts, and the spot market were $10,451,553 or 50.4% above budget projections through September. Total Operating Expenses for September were $1,390,819 or 20.3% below budget. For the first three months of the fiscal year, the Utility experienced positive net operating results that were $1,987,562 better than budget projections. Capital Expenditures through September were $794,768 for revenue-funded projects and $6,803,710 for bond- funded projects, primarily stemming from construction of Generation Unit 6. The Electric Utility unrestricted cash balance at the end of September was $36.5 million. I Mr. Hauser reviewed the Industry Activities Update submitted with the staff report, which highlights various legislative bills and the impact they might have, if passed, on the City's energy portfolio. He noted SB 14 and AB 64 in particular (both 33 percent Renewable Portfolio Standard (RPS) bills) because they were vetoed by Governor Schwarzenegger, who issued Executive Order S-21-09 directing the California Air Resources Board (CARB) to develop a 33 percent RPS energy regulation for California by July 31, 2010. CARB has begun promulgating those rules very rapidly, which has resulted in a letter dated October 29, 2009, being sent to CARB from Senator Simitian (author of SB 14) and Senate President pro-Temp Steinberg which was, in essence, a cease-and-desist order and stated that CARB had no authority to implement a RPS through Executive Order. The letter further warned that ifCARB proceeded with efforts to circumvent the legislative process by adopting a RPS by administrative fiat, they would be obliged to scrutinize the Board's actions and take appropriate action through legislative and budget processes to ensure compliance with the law. Redding Electric Utility (REU) is aware that new legislation is being developed relating to a 33 percent RPS and has a keen interest in such since previous bills would have disallowed REU to claim any renewable energy value from it's Big Horn Wind project located in eastern Washington, causing a more than 40 percent increase in wind-related replacement power costs. Mr. Hauser assured Council that REU will be diligent in its efforts to shape the new legislation to protect the City's electric customers. Mr. Hauser recommended that the City Council accept the Electric Utility Monthly Financial Report for September 2009. I A MOTION WAS MADE by Council Member Stegall, seconded by Council Member Dickerson, accepting the Monthly Financial Report for the Electric Utility for September 2009. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, Jones, and Stegall Council Members - None Council Members - None Council Members - Bosetti and McArthur MONTHLY FINANCIAL REPORT - General Fund - September 2009 [B-130-070] Finance Director Strong reviewed the monthly financial report for the General Fund for September 2009 as submitted in the staff report, noting that it represents the first quarter of fiscal year 2009-10. He pointed out that it reflects the Council-directed changes made in September. Total revenue to-date is $10.2 million or $353,114 (3.4%) below staffs cash flow projection. Expenditures at the end of September, excluding encumbrances, total $16,359,025 or $1,248,063 (7.1 %) below staffs projection. Encumbrances at month end total $1,226,607. 11/3/2009 268 Mr. Strong recommended that the City Council accept the General Fund Monthly Financial Report for September 2009. A MOTION WAS MADE by Council Member Stegall, seconded by Council Member Dickerson, accepting the Monthly Financial Report for the General Fund for September 2009. The Vote: AYES: Council Members - Dickerson, Jones, and Stegall NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - Bosetti and McArthur CLOSED SESSION At the hour of8:29 p.m., Vice Mayor Jones announced that Council would adjourn to Closed session to discuss the following two items: I Pursuant to California Government Code Section 54956.8: CONFERENCE WITH REAL PROPERTY NEGOTIATOR Property: 6433 Oxbow Street (Assessor's Parcel Number 050-660-009) Agency Negotiators: Community Services Director Niemer Negotiating Parties: City of Redding and Billy & Laura Zirkle Under Negotiation: Price & Terms [C-070-200] Pursuant to California Government Code Section 54956.9(b)(3)(E). CONFERENCE WITH LEGAL COUNSEL - THREATENED LITIGATION The City Council will discuss with its attorney a threat of litigation from a subcontractor's bonding company re: the Stillwater Business Park project. Documentation of the threat is available for public inspection in the Office of the City Clerk pursuant to Section 54957.5 [L-lOO] REPORT OF CLOSED SESSION ACTION(S) At 9:05 p.m., Vice Mayor Jones reconvened the Regular Meeting to open session and reported that there was no reportable action on either item. I ADJOURNMENT There being no further business, at the hour of 9:06 p.m., Vice Mayor Jones declared the meeting adjourned. ATTEST: ~(~~(, "Yn'€ll Deputy City Clerk "( I 11/3/2009