HomeMy WebLinkAboutMinutes - City Council - 2007-12-04
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City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress A venue
Redding, California
December 4, 2007 7 :00 p.m.
The Pledge of Allegiance to the Flag was led by Council Member Stegall.
The Invocation was offered by Police Chaplain Charlene Payment.
The meeting was called to order by Mayor Dickerson with the following Council Members
present: Bosetti, Jones, Murray, and Stegall.
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Also present were City Manager Starman, Assistant City Manager/Police Chief Moty, City
Attorney Duvernay, Assistant City Attorney Frediani, Electric Utility Director Feider,
Development Services Director Hamilton, Transportation and Engineering Director Tippin,
Fire Chief Fry, Personnel Director Johnson, Community Services Director Niemer, Police
Lieutenant Mayberry, Police Sergeant Long, City Clerk Strohmayer, Assistant City Clerk
Sherman, and Executive Assistant Stribley.
REORGANIZA nON OF THE CITY COUNCIL - Selection of Mayor, Vice Mayor, and
Mayor Pro Tempore
(A-050-060)
MOTION: Made by Council Member Murray, seconded by Council Member Bosetti
appointing Vice Mayor Stegall to the office of Mayor, Mayor Pro Tempore Bosetti to the
office of Vice Mayor, and Council Member Jones to the office of Mayor Pro Tempore for
one-year terms expiring December 2008. The Vote: Unanimous Ayes.
PRESENTATION - Honoring Mayor Emeritus Dick Dickerson
(A-050-060)
On behalf of the City Council, Mayor Stegall presented Mayor Emeritus Dick Dickerson
with a Gavel Plaque in recognition and appreciation of his service as Mayor of the City
Council and for his service to the community. Mayor Stegall commented that Mr. Dickerson
was the epitome of a statesman.
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PRESENT AnON - Certificate of Appreciation to Dick Dickerson from Healthy Shasta
(A-050-060)
Amy Pendergast, Shasta County Public Health representing Healthy Shasta, presented Mayor
Emeritus Dickerson with a collage of photos depicting his participation in various events,
such as "Walk with the Mayor," designed to highlight a healthy lifestyle and for his
continued commitment toward a healthy community.
Council Member Dickerson thanked City Clerk staff, City staff, and the community for the
honor of having served as Mayor and related that it had been a pleasure and privilege to
participate in so many community events as Mayor, observing that his presence was always
met with true appreciation from the public.
PRESENT A nON - "Meritorious Conduct A ward" by the Redding Fire Department
(A-050-140)
Fire Chief Fry presented both California Highway Patrol Motor Carrier Specialist II Joel
Arbuckle and Officer Sean Brigett with "Meritorious Conduct Awards" for their heroism
in saving a person from a burning home on November 1, 2007, at Placer and Magnolia
Streets.
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PUBLIC COMMENT
(P-150)
Rose Merlot, Redding Resident, expressed concern regarding the wide-spread and growing
prescribing of psychotropic antidepressant drugs to children by the medical community.
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CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Minutes: Special Meetings of September 17, 2007 and October 15, 2007;
Special and Regular Meetings of November 6, 2007
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Approval of Payroll and Accounts Payable Registers
(A-050-100-500)
It is recommended that Accounts Payable Register No.9, check numbers 857147 through
857727 inclusive, in the amount of $9,036,475.23, for the period of November 1, 2007,
through November 16, 2007; Accounts Payable Register No. 10 check numbers 857728
through 857968 inclusive, in the amount of$1 0,266,582.30, for the period of November 17,
2007, through November 30 2007; Payroll Register No.9 electronic deposit transaction
numbers 218237 through 219076 and check numbers 538156 through 538283 inclusive, in
the amount of$2,490,367 .43, for the period of October 21,2007, through November 3,2007;
and Payroll Register No. 10 electronic deposit transaction numbers 219127 through 219958
and check numbers 538292 through 538449 inclusive, in the amount of$2,485,901.85, for
the period of November 4,2007, through November 17, 2007, be approved.
TOTAL: $24,279,326.81
Treasurer's Report - October 2007
(A-050-100-600)
Total Treasurer's Accountability
$156,951,251.37
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities
$272,757,723.98
ACR133 Report and Cash Reconciliation
(F -205-095-650)
It is the recommendation ofthe Administrative Services Director that the ACR133 Report
and the Proof of Cash Reconciliation for October 2007 be accepted.
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Ordinance - Amending Redding Municipal Code chapters 16.01 through 16.05, adopting the
2007 California Building, Electrical, Mechanical, and Plumbing Codes .
(C-110-200/C-I10-250/C-I10-350/C-110-400)
It is the recommendation of the Development Services Director that Ordinance No. 2401 be
adopted, an ordinance of the City Council of the City of Redding amending Redding
Municipal Code Chapters 16.0 through 16.05, repealing Section 16.01.020, amending and
renumbering Sections 16.01.030 through 16.01.060, 16.02.010, 16.03.010, 16.04.010, and
16.05.010 and making Findings ofF acts relative to local climatic, geologic, and topographic
conditions, relating to the adoption of the 2007 California Building Standards Code.
Donation of Surplus Computer and Related Equipment - Restoration Enterprises
(B-050-1 00- 700)
It is the recommendation of the Support Services Director that the City Council authorize
donation of surplus computer and related equipment, including old communications
equipment, to Restoration Enterprises, a non-profit organization that supplies refurbished
equipment to worthy causes for a minimal amount.
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Resolution - Amending City Council Policy No. 1302 - Street Banner Program (Temporary
Noncommercial Street Banners within the Public Right-of-Way)
(A-050-060-555 & L-OI0-500-050)
It is the recommendation of the Electric Utility Director and the Development Services
Director that Resolution No. 2007-217 be adopted, a resolution of the City Council of the
City of Redding, revising City Council Policy No. 1302-Street Banner Program (Temporary
Non Commercial Street Banners within the Public Right-of-Way), relating to the size and
manner of hanging banners, approved locations, and other minor revisions.
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 October 2007. Retail power sales revenue
was $242,290 or 0.8% above projections and wholesale power sales through October were
$10,466,995 or 104.0% above projections. Operating revenue after energy costs was
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$528,237 or 3.7% below expectations. The total cost of electricity through October 2007
was $11,340,888 (41.1%) above projections. The Utility's net operating results through
October is $4,485,000.
Notice of Completion - Bid Schedule No. 3935, Installation of a Fourth 115/12kV
Transformer Bank at Canby Substation
(B-050-020 & E-090-140-180)
It is the recommendation of the Electric Utility Director that Bid Schedule No. 3935 (Job No.
9294), Installation of a Fourth 115/12kV Transformer Bank at Canby Substation awarded to
Cal-Electro, Inc., be accepted as satisfactorily completed and that the City Clerk be
authorized to file a Notice of completion. The final cost was $914,450.
Award of Bid - Bid Schedule No. 4095, Furnishing Primary Splice Boxes
(B-050-100 & E-090)
It is the recommendation of the Electric Utility Director that Bid Schedule No. 4095,
Furnishing Primary Splice Boxes be awarded to Jensen Precast Company, Inc. To furnish
primary splice boxes for the period of January 1, 2008, to December 31, 2008, in an
approximate amount of $280,842, and that the Purchasing Officer be authorized to extend
the bid award one year at the same price, terms, and conditions if mutually agreed.
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Award of Bid - Bid Schedule No. 4094, Electric Utility Trench and Excavation
(B-050-100 & E-090)
It is the recommendation ofthe Electric Utility Director that Bid Schedule No. 4094, Electric
Utility Trench and Excavation be awarded to Cox & Cox Construction, Inc. to furnish
electric utility trench and excavation work for the period of January 1, 2008, to December
31,2008, in the approximate amount of$819,318.50, and that the Purchasing Officer be
authorized to extend the bid award one year at the same price, terms, and conditions if
mutually agreed.
Agreement - Siemens Demag Delaval Turbomachinery, Inc. to perform Level C maintenance
on Redding Power Generating Unit 5
(E-120-150-500)
It is the recommendation ofthe Electric Utility Director that the City Council authorize the
City Manager to execute an agreement with Siemens Demag Delaval Turbomachinery, Inc.
to perform Level C maintenance on Redding Power Generating Unit 5 in the amount of
$4,445,687 plus taxes estimated in the amount of $480,000 to be performed in April 2009.
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Resolution - Approving Amended and Restated Northern California Power Agency (NCP A)
Joint Powers Agreement
(E-120-400)
It is the recommendation of the Electric Utility Director that Resolution No. 2007-218 be
adopted, a resolution of the City Council of the City of Redding authorizing the Mayor to
execute the Amended and Restated Northern California Power Agency (NCP A) Joint Powers
Agreement increasing the annual assessment ofNCP A members from 10 cents per peak kW
to 15 cents per peak kW and extending the time to withdraw from NCP A from 30 days to
two years.
Installation of Playground Equipment - Active 20-30 Club of Redding
(P-050-030)
It is the recommendation ofthe Community Services Director that the City Council accept
the offer from the Active 20-30 Club of Redding to install new play equipment at Alta Mesa
Park in partnership with KaBOOM!, a non-profit organization that coordinates community-
built playground construction projects.
Monthly Financial Report - General Fund
(B-130-070)
It is the recommendation of the City Manager that the City Council accept the General
Fund's Monthly Financial Report for October 2007. Total revenue at the end of October is
$15.9 million or $1,072,938 (6.4%) below staffs cash flow projection. Expenditures at
month end, exc1udingencumbrances, total $23,175,348 or$5,158,331 (18.3%) below staffs
original projection. Encumbrances total $1,862,284.
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Resolution - Summarily Vacating a Portion of a Public Service Easement at 2594 Warm
Spring Lane (A-3-07)
(A-OI0-040)
It is the recommendation ofthe Transportation and Engineering Director that Resolution No.
2007-219 be adopted, a resolution of the City Council of the City of Redding, summarily
vacating (A-3-07) a portion (75-feet wide) of public service easement "E" shown on the map
of Alder Creek Subdivision (formerly Hacienda Heights) Unit 8, located at 2594 Warm
Spring Lane, by property owner Bruce Becker, as it is not required for public use; recorded
August 17,2004, in Book 23 of Maps at Page 52, Shasta County Records.
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Resolution - Summarily vacating a public service easement located at 3125 Laver Street (A-
4-07), by the City of Redding
(A-01O-040)
It is the recommendation of the Transportation and Engineering Director that Resolution No.
2007-220 be adopted, a resolution of the City Council of the City of Redding, summarily
vacating a 15- foot public service easement (A -4-07) "B," because it is not required for public
use, as shown on the Map of Clover Acres Subdivision, Unit 2, located at 3125 Laver Street,
by Ochoa-Shehan, Inc. recorded February 17, 2006, in Book 23 of Maps at Page 94, Shasta
County Records.
Award Request for Proposal - Request for Proposal No. 4079, Consultant Services for the
Stillwater Business Park Project; and
Consultant Services Agreement - PB Americas
(B-050-100 & E-050-500)
It is the recommendation of the Transportation and Engineering Director that Request for
Proposal (RFP) No. 4079, Consultant Services for the Stillwater Business Park Project be
awarded to PB Americas, Inc. To provide construction management services for the
Stillwater Business Park Project in an amount not-to-exceed $1.1 million, that the City
Manager be authorized to approve contract amendment increases up to $200,000, and that
the Mayor be authorized to execute a Consultant Services Agreement for same.
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Council Member Jones advised that, for consistency in his opposition of the Stillwater
Business Park Project, he will vote no on this item. The Vote:
A YES: Council Members - Bosetti, Dickerson, Murray, and Stegall
NOES: Council Members - None
ABSTAIN: Council Members - Jones
ABSENT: Council Members - None
First Amendment to Lease Agreement - Hawes River Acres for agricultural and pasturing
activities at Redding Municipal Airport
(C-070-100 & A-090-100)
It is the recommendation of the Transportation and Engineering Director that the City
Council approve the First Amendment to the Lease Agreement with Hawes River Acres for
agricultural and pasturing activities at Redding Municipal Airport, adding 80 additional acres
to the agreement for a total of 639 acres for a total amount of $5, 163.12 per year.
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Second Amendment to the Gift Shop Lease Agreement - John and Judy Goold at Redding
Municipal Airport
(C-070-100 & A-090-100)
It is the recommendation of the Transportation and Engineering Director that the City
Council approve the Second Amendment to the Gift Shop Lease Agreem'ent with John and
Judy Goold at the Redding Municipal Airport providing additional square footage to the
shop.
Additional Contingency Funds - Bid Schedule No. 4067, Sacramento River Trail Extension
(B-050-020 & P-050-460-700) ,
It is the recommendation of the Transportation and Engineering Director that the City
Council approve additional contingency funds in the amount of$25,000 (from Proposition
12 grant funds) for Bid Schedule No. 4067 (Job No. 2181), Sacramento River Trail
Extension Projects awarded to Site Work Solutions, Inc. to increase the length of the bridge
railing at each approach to improve safety of the trail and prevent potential drop-offs.
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Accept Improvements - Tuscany Villas Subdivision Phase 1
(S-101-094)
It is the recommendation of the Transportation and Engineering Director that the City
Council accept the improvements for the Tuscany Villas Subdivision Phase 1 (S-10-05),
located south of Oasis Road and east of Gold Hills Drive, by Chase & Taylor, LLC, as
satisfactorily completed and that the City Clerk be instructed to return securities to the
developer.
Resolution - Accepting Streets and Improvements in Clover Creek Village Subdivision Units
1-4
(S-101-051 & S-070-230)
It is the recommendation ofthe Transportation and Engineering Director that Resolution No.
2007 -221 be adopted, a resolution of the City Council of the City of Redding, accepting
streets for maintenance and operation in the Clover Creek Village Subdivision Units 1-4 (S-
15-02 & S-13-04); and accept improvements, located west of Airport Road and east of the
Clover Creek Preserve, by Clover Creek Development Co., LLC; and 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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Resolution - Accepting Streets and Improvements in Clover Acres Subdivision Unit 1
(S-l 01-069 & S-070-230)
It is the recommendation of the Transportation and Engineering Director that Resolution No.
2007 - 222 be adopted, a resolution of the City Council of the City of Redding, accepting
streets for maintenance and operation in the Clover Acres Subdivision Unit 1 (S-20-03)
located south of Forest Hills Drive at the south end of Wimbledon Drive, by Ochoa &
Shehan, Inc., that the improvements be accepted as satisfactorily completed, and that the City
Clerk be instructed to return securities to the developer.
Resolution - Accepting Streets and Partial Improvements in Bel Air Estates Subdivision Unit
1A
(S-10l-037 & S-070-230)
It is the recommendation of the Transportation and Engineering Director that Resolution No.
2007 -223 be adopted, a resolution of the City Council of the City of Redding, accepting
streets for maintenance and operation in the Bel Air Estates Subdivision Unit 1 A (S-1-0 1)
located south of Quartz Hill Road at the east end of Stanford Drive, by Ochoa & Shehan,
Inc.; that the improvements be accepted (excepting the street lights) as partially completed;
and that the City Clerk be instructed to return appropriate securities, withholding a sufficient
amount to secure street light completion.
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Resolution - Accepting Streets and Improvement in River Ridge Park Subdivision Unit 5
(S-100-654-600 & S-070-230)
It is the recommendation ofthe Transportation and Engineering Director that Resolution No.
2007 -224 be adopted, a resolution of the City Council of the City of Redding, accepting
streets for maintenance and operation in River Ridge Park Subdivision Unit 5 (S-6-01)
located south of Quartz Hill Road and east of River Ridge Drive, by Ochoa & Shehan, Inc.,
that the improvements be accepted as satisfactorily completed, and that the City Clerk be
instructed to return securities to the developer.
Resolution - Appropriating Accrued Interest Funds for Wetlands Mitigation Activities at the
Old Oregon Trail Wetlands Mitigation Site
(B-130-070 & S-060)
It is the recommendation of the Transportation and Engineering Director that Resolution No.
2007 - 225 be adopted, a resolution of the City Council of the City of Redding, approving and
adopting the 16th amendment to City Budget Resolution No. 2007 -127 appropriating $32,750
for wetlands mitigation at the Old Oregon Trail Wetlands Mitigation Site for fiscal year
2007-08. .
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Renewal of Agreement - Shasta County Opportunity Center (SCOC) for recyclable material
sorting services
(S-020-550)
It is the recommendation of the Municipal Utilities Director that the City Council approve
renewal of the Agreement with the County of Shasta through the Health and Human Services
Agency, Social Services Branch, Opportunity Center to provide recyclable material sorting
services for 30-months in the amount of $25,000 for the first year, $26,000 per month the
second year and $27,000 the final year.
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Award of Bid - Bid Schedule No. 4087, Purchase of Cable Reeving Roll-off Truck for the
West Central Landfill
(B-050-100 & S-020-900)
It is the recommendation of the Municipal Utilities Director that Bid Schedule No. 4087,
Purchase of Cable Reeving Roll-off Truck for the West Central Landfill be awarded to
Redding Freightliner in the amount of$130,493.22 and authorizing the sale of a 1993 Volvo
GM roll-off surplus truck with proceeds deposited to the West Central Landfill Division's
Equipment Replacement Fund.
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MOTION: Made by Council Member Jones, seconded by Council Member Bosetti, 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: Council Members - Bosetti, Dickerson, Jones, Murray, and Stegall
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Ordinance No. 2401 and Resolution Nos. 2007-217, 2007-218, 2007-219, 2007-220, 2007-
221,2007-223,2007-224, and 2007-225 are on file in the Office of the City Clerk.
PUBLIC HEARING - Five-year (2007/08 to 2012/13 fiscal years) Capital Improvement Plan
RESOLUTION - Approving same for City-sponsored projects
(B-130-010)
The hour of7:00 p.m. having arrived, Mayor Stegall opened the public hearing regarding the
Five-year Capital Improvement Plan (CIP) for fiscal years 2007-08 thr~ugh 2012-13 for City-
sponsored projects.
The following document is on file in the Office of the City Clerk:
Affidavit of Publication - Notice of Public Hearing
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City Clerk Strohmayer advised that no protests were received.
Engineering and Transportation Director Tippin explained that the CIP is a multi-year
schedule for public improvements that is reviewed annually in accordance with state law to
ensure consistency with the General Plan. He advised that the purpose of the CIP is to
identify long-term projects, schedule capital expenditures, serve as an effective tool in
implementing the General Plan, and as a reference tool to assist future budgeting decisions
and reporting of the Impact Fee Fund. The CIP is generated from the existing budget, the
General Plan, and individual facilities plans developed for Airports, Electric Utility, Public
Safety, Parks and Recreation, Solid Waste, Strom Drainage Utility, Streets and Roads,
Wastewater and Water Utilities. He pointed out that there are 118 projects listed in the
proposed CIP with expenditures totaling $480,039,973 primarily focused on fiscal years
2007-08 through 2012-13. Mr. Tippin said that because project funding is subject to the
biennial budget process, the CIP does not commit funds or approve specific projects, and
added that the CIP is not an operating budget for the City, but a list of projects the City
believes it can afford to build, but does not include all the projects the City needs or wants.
Mr. Tippin recommended adoption of a resolution approving the CIP for fiscal years 2007 -08
to 2012-13.
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Gary Cadd, Redding resident, asked that the Capital Improvement Plan include traffic
signalization at Wisconsin Drive off Placer Road.
Mayor Stegall determined that no other individual wished to address this matter and closed
the public hearing.
Council Member Murray expressed concern that Facility Capital Planning for the Redding
Convention Center and storm drain area projects are unfunded beyond 2013.
MOTION: Made by Council Member Jones, seconded by Council Member Murray,
adopting Resolution No. 2007-226, a resolution of the City Council of the City of Redding,
adopting the Redding Capital Improvement Plan (CIP) focusing on fiscal years 2007-08 to .
2012-13.
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The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Bosetti, Dickerson, Jones, Murray, and Stegall
Council Members - None
Council Members - None
Council Members - None
Resolution No. 2007-226 is on file in the Office of the City Clerk
UPDATE ON MAJOR PROJECTS - Homeless outreach, illegal camping and transient
Issues
(A-050-080 & P-150-150)
Police Lieutenant Mayberry and Sergeant Long provided slides of the Redding Police
Department's Homeless Outreach Program and efforts to eliminate illegal camping and
transient issues in the City. Sergeant Long pointed out that while many homeless individuals
refuse outreach efforts, choosing to live as a transient, multi-agency programs and efforts for
those who wish to return to a standard lifestyle and permanent housing are very successful.
He added that the program transitioned six homeless families this year.
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Sergeant Long stated that calls for service regarding illegal camping and transient issues have
increased significantly since 2003, with transient camps posing significant health hazards
such as vicious dogs, drug paraphernalia and other types of waste. He stated that these
problems impact not only the Police Department, but the Parks and Fire Departments as well
as the California Department of Fish and Game. Mr. Long said that control of illegal
camping and transient issues can only be achieved through vigorous enforcement of laws,
community cleanup, and community safety.
No action was required on this informational item.
IMPLEMENTATION PLAN FOR GOVERNMENT ACCOUNTING STANDARDS
BOARD STATEMENT 45
(P-I00-150)
City Manager Starman explained that the purpose of the Government Accounting Standards
Board 45 (GASB 45) is to deal with post-employee benefits, specifically health care. He said
that when an employee retires from City service, the City pays one-half of the health
insurance premium, if the retiree chooses, which (at this time) is approximately $576. He
stated that a City Council workshop was held on May 18 of this year and a report was
presented which quantified the value of these health benefits at approximately $94 million
over 30 years which includes current retirees and those in the City work force who will retire
in the next 30 years.
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Mr. Starman related that GASB 45 requires disclosure and reporting ofthe incurred liability
but does not require that funds be set aside to ensure the amount into the future. He believed,
however, that a proactive approach, setting aside a certain amount toward the benefits, would
be advisable. He recalled that the report presented at the May workshop suggested an
irrevocable trust fund for that purpose and related that CalPers will be able to provide that
type of service after January 1, 2008.
Mr. Starman recommended that in fiscal year 2008-09, the City begin to place monies in a
retirement trust fund, probably with CalPers, and in future years begin to increase the set
aside amount by 1 % each year to reach the annual figure suggested by the consultant study.
Mr. Starman pointed out that the current health benefits enjoyed by retirees are not vested
benefits and it could be argued that when facing financial adversity, those benefits could be
withdrawn, however, he stated that retirees based their financial future when those promises
were made, and he recommended that those promises be honored.
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Mr. Starman stated that it appeared the focus of consideration should be on current and future
employees when considering the financial impacts to the City for health benefits. He stated
that premium increases in the last few years have been as high as 15% and staff is not
recommending cutbacks, but possibly caps or some more reasonable amount. He advised
that there are several recommendations for consideration, such as changes with regard to
Medicare, cap on benefits, providing a vesting period for employees to receive health
benefits at retirement, or a two-tiered benefit system. However, he cautioned that since most
employees are covered under labor contracts, the meet and confer process would be
necessary prior to moving forward with the suggested options.
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Gary Cadd, Redding resident, questioned whether City taxpayers should be paying health
care benefits for City retirees who are on Medicare and supported the suggestions designed
to reduce the financial impacts to the City.
Mayor Stegall, and Council Members Dickerson and Jones expressed support for staff's
recommendations and asked that additional saving alternatives be explored.
Council Member Bosetti asked that actual monetary savings be attached to each of the four
recommendations in order to make a more informed decision.
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Council Member Murray acknowledged that these issues were subject to meet and confer
process, but suggested that as of January 1, 2008, the benefit system should be bifurcated
so that no future employees are hired under the current benefit schedule.
In response to Council Member Murray, Mr. Starman advised that a report could be returned
within 30 days, except for Council Member Bosetti' s request for quantifying ~avings, which
will take additional work by the GASB 45 report consultant.
MOTION: Made by Council Member Murray, seconded by Council Member Jones,
directing staff to prepare a report, by the second meeting in January 2008, proposing
bifurcation of the employee health benefits system for future employees and providing
parameters for future labor contract negotiations to reach this goal.
The Vote: Unanimous Ayes
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REDDING TOURISM MARKETING BUSINESS IMPROVEMENT DISTRICT FOR
PROMOTION AND TOURISM - Redding Hotel/Motel Association
(A-170)
Support Services Director Kersten recalled that in October 2006, the Redding Hotel/Motel
Association (RHMA) introduced a proposal for a citywide tourism Business Improvement
District (BID) primarily funded by a 1 % lodging industry assessment to provide additional
revenue for tourism promotions and advertising. He said that recently, representatives from
the seven largest properties approved moving forward with a request to the City Council for
conceptual approval of the Tourism Marketing Busines~ Improvement District (TMBID),
which includes the following:
1. Increase the Redding Convention Visitor Bureau (RCVB) funding from 20% to 50%
of its total budget for direct marketing;
2. Develop a TMBID and through a 1 % fee added to all lodging properties in Redding,
utilize the approximate $400,000 per year gen~rated specifically for marketing and
advertising;
3. Provide a matching $100,000 of hotel assessment program funds with an additional
$100,000 from the RCVB Enterprise Fund; and
4. Assign City Tourism Officer Warren to manage and coordinate the City's advertising
budget with those funds from the TMBID.
Mr. Kersten explained that the RHMA believes that more than 50% ofthe hotel owners favor
the proposal and he recommended that the City Council provide conceptual approval of the
proposal in order to move forward, and present it to the hotel industry in Redding with a two-
year limitation period.
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Hilltop Best Western Hotel owner, Steve Gaines, provided slides of the proposal advising
that the while the original intent of the Transient Occupancy Tax (TOT) was that it be used
for destination marketing, last year only $171,000 was used for that purpose. Mr. Gaines
said that allocation of funds would be predetermined and only used for business-related
matters such as destination advertising. He anticipated that ifthis matterreceives conceptual
approval by the City Council, the proposal will be returned to the City Council for a
resolution of intent to form the TMBID in March 2008.
In response to City Council concerns that smaller hotels will be forced into participating, Mr.
Starman pointed out that the matter is conceptual at this time.
Council Member Murray suggested that the City not advance an additional $100,000, but
allow the BID to take any additional proceeds from increases in TOT if the proposal is
successful.
It was the consensus of the City Council to conceptually approve the proposal.
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LAND VALUE BASIS FOR PARK IN-LIEU FEES
(F-205-600)
Development Services Director Hamilton recalled that the City's Subdivision Ordinance
establishing in-lieu fees for parklands based on the fair market value of the land otherwise
required for park dedication was last updated in October 2006. He related that these fees
(Quimby Act fees) and the amount of land provided should be adequate to address future
park needs to support both single- and multiple-family residential development. Mr.
Hamilton said that the fee was established last year at $1,936 per lot because of a combined
average sales price of$132,382 per acre for all types of residential land. However, because
a smaller sample ofland parcels was available this year for evaluation, and a wide variation
in prices paid, the fee increase would have been $3,336 (almost 70%) using standard criteria.
Mr. Hamilton recommended that, due to the volatility in the market place, consideration of
the fee increase be deferred until just prior to the annual update of the Schedule of Fees and
Service Charges.
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MOTION: Made by Council Member Murray, seconded by Council Member Jones,
deferring action on the update to the established Quimby Act Park In-Lieu fees until the
regularly scheduled City Council meeting of July 1, 2008. The Vote: Unanimous Ayes
FUNDING SOURCES FOR CONSTRUCTION OF A NEW PUBLIC SAFETY FACILITY
(C-050-555 & A-050-270)
City Manager Starman recalled that a new Public Safety Facility (Facility) has been a
priority project for several years. He said that during the City Council meeting of December
19,2006, Council conceptually approved, as the preferred site for the Facility, the California
Department ofF orestry (Calfire) building property and directed staff to work with lobbyists
to relocate Calfire. However, it was acknowledged at that time that funding for the new
Facility was non-existent and staff was directed to develop funding alternatives for the
needed Facility.
Mr. Starman related that the estimated cost of a new Facility would be $35 million, and he
identified potential funding resources as follows:
1. Redding Redevelopment Agency contributions for elimination of blight - $5 million.
2. Proceeds from the sale of the existing police Facility - $1 million.
3. Public Benefits contribution (Redding Electric Utility) - $500,000.
4. Community Development Block Grant (CDBG) contribution - $500,000
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He stated that those amounts total $7 million, leaving $28, million to be financed. One
possible alternative for financing the remaining amount would be a 30-year bond (5%) sale.
Mr. Starman explained that the annual debt service would amount to $1.9 million, less the
$50,000 per year currently being paid to lease the Investigations Division building, for a final
total of$I.85 million per year in debt service. He said that the annual debt service could be
addressed in several ways:
1. Allocate up to $600,000 a year from the Redding Electric Utility (REU) Generating
Unit 6 in-lieu fee.
2. Institute a police impact fee up to $500,000.
3. Reduce the General Fund Street maintenance budget up to $650,000 annually.
4. Reduce Turtle Bay Exploration Park contribution in the amount of $350,000
annually.
5. Reduce General Fund City Departmental budgets by an additional .5% up to
$150,000.
6. Sell the City-owned Stratte property to reduce General Fund obligation of$200,000
annually.
7. Delay hiring future personnel providing up to $400,000 annually.
8. Increase the Transient Occupancy Tax (TOT) from 10% to 12% providing $800,000
annually. (This would require voter approval)
9. Place a sales tax increase initiative of .25% on the next ballot to generate
approximately $6 million annually. (This would require voter approval)
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Mr. Starman pointed out that the sales tax initiative may be more palatable if it included a
stipulation that revenue generated from the tax increase would be dedicated for construction
of the Facility only and that it carry a sunset clause eliminating the tax increase once the
Facility is completed.
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He recommended that the City Council determine the funding sources preferred and direct
staff to develop a financing plan. He also recommended that initial design work begin and
asked that the Council approve circulation of a Request for Proposal for Schematic Design
and Drawings and direct staff to continue to work with Calfire to acquire the property on
Cypress Avenue.
Police Chief Moty provided slides of the current police Facility demonstrating the
overcrowding and lack of space in the Facility.
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Maggie Redman and Jerry Peters, representing Turtle Bay Exploration Park, urged the City
Council not to reduce funding to Turtle Bay.
Gary Cadd, Redding resident, supported construction of a new Facility and a sales tax
increase as suggested, but he urged that impact fees and street maintenance reductions be
removed from consideration.
Council discussion and support for various funding sources as identified varied widely, and
by consensus, staff was directed to bring back a report quantifying the savings of certain
potential funding sources as discussed and to explore additional alternative funding sources
for construction of a new Public Safety Facility in an amount not-to-exceed $35 million.
RESOLUTION OF NECESSITY - Acquire a public service easement on property owned by
Everett & Carla Brown, et aI., for electric transmission line right-of-way for Stillwater
Business Park
(C-070-010 & E-050-500)
MOTION: Made by Council Member Murray, seconded by Council Member Bosetti,
continuing the Resolution of Necessity to acquire a public service easement on property
owned by Everett & Carla Brown, et aI., located on Hartnell Avenue at Hwy 44, for electric
transmission line right of way for Stillwater Business Park, to the regular City Council
meeting of December 18,2007. The Vote: Unanimous Ayes
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ACQUISITION OF A PUBLIC SERVICE EASEMENT - Property owned by David &
Cindee Denton, located at 4620 Desperado Trail, for electric transmission line right of way
for Stillwater Business Park
(C-070-010 & E-050-500)
MOTION: Made by Council Member Murray, seconded by Council Member Bosetti,
tabling the acquisition of a public service easement on property owned by David & Cinder
Denton, located at 4620 Desperado Trail, for electric transmission line right of way for
Stillwater Business Park, as the matter was settled. The Vote: Unanimous Ayes
ACQUISITION OF A PUBLIC SERVICE EASEMENT - Property owned by Bradford &
Jacqueline Evans, located on Old Oregon Trail, for electric transmission line right of way for
Stillwater Business Park
(C-070-010 & E-050-500)
MOTION: Made by Council Member Murray, seconded by Council Member Bosetti,
tabling the acquisition of a public service easement on property owned by Bradford &
Jacqueline Evans, located on Old Oregon Trail, for electric transmission line right of way for
Stillwater Business Park, for electric transmission line right of way for Stillwater Business
Park, as the matter was settled. The Vote: Unanimous Ayes
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ACQUISITION OF A PUBLIC SERVICE EASEMENT - Property owned by James &
Deborah Huber, located on Hartnell Avenue, for electric transmission line for Stillwater
Business Park
(C-070-010 & E-050-500)
MOTION: Made by Council Member Murray, seconded by Council Member Bosetti,
tabling the acquisition of a public service easement on property owned by James & Deborah
Huber, located on Hartnell A venue, for electric transmission line for Stillwater Business
Park, as the matter was settled. The Vote: Unanimous Ayes
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272
ACQUISITION OF A PUBLIC SERVICE EASEMENT - Property owned by Joe L.
Sanders, located at 4425 Desperado Trail, Assessors Parcel Number 054-220-005, for
electric transmission line for Stillwater Business Park
(C-070-010 & E-050-500)
MOTION: Made by Council Member Murray, seconded by Council Member Bosetti,
tabling the acquisition of a public service easement on property owned by Joe L. Sanders,
located at 4425 Desperado Trail, Assessors Parcel Number 054-220-005, for electric
transmission line for Stillwater Business Park, as the matter was settled.
The Vote: Unanimous Ayes
ACQUISITION OF A PUBLIC SERVICE EASEMENT - Property owned by Irvin & Carol
Scarbrough, located at 3655 Argyle Road, for electric transmission line for Stillwater
Business Park
(C-070-010 & E-050-500)
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MOTION: Made by Council Member Murray, seconded by Council Member Bosetti,
tabling the acquisition of a public service easement on property owned by Irvin & Carol
Scarbrough, located at 3655 Argyle Road, for electric transmission line for Stillwater
Business Park, as the matter was settled. The Vote: Unanimous Ayes
RESOLUTION OF NECESSITY - Acquire public service easement on property owned by
Colburn R. & Valdene Thomason for electric transmission line for Stillwater Business Park
(C-070-010 & E-050-500)
MOTION: Made by Council Member Murray, seconded by Council Member Bosetti,
continuing the Resolution of Necessity to acquire a public service easement on property
owned by Colburn R. & Valdene Thomason, located between Argyle Road and Old Oregon
Trail, for electric transmission line for Stillwater Business Park, to the regular City Council
meeting of December 18,2007. The Vote: Unanimous Ayes
CONTINUED RESOLUTION OF NECESSITY - Acquisition of Property for a public
service easement on property located at 5155 Stillwater Parkway, at the east end of Rancho
Road, owned by Stevenson, et aI., for electric transmission line for Stillwater Business Park
(C-070-010 & E-050-500)
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MOTION: Made by Council Member Murray, seconded by Council Member Bosetti,
tabling the acquisition of a public service easement on property on property located at 5155
Stillwater Parkway, at the east end of Rancho Road, owned by Stevenson, et aI., for electric
transmission line for Stillwater Business Park, as the matter was settled.
The Vote: Unanimous Ayes
ORAL REPORT - City Council Member attendance at conferences/meetings reimbursed at
City expense (Requirement of Assembly Bill 1234)
(A-050-060)
Mayor Stegall reported attending a Northern California Power Agency meeting in Roseville,
California last week.
ADJOURNMENT
There being no further business, at the hour of 10:25 p.m., Mayor Stegall declared the
meeting adjourned.
APPROVED
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ATTEST:
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City Clerk 1
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