HomeMy WebLinkAboutMinutes - City Council - 2008-05-06
71
City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress Avenue
Redding, California
May 6,2008 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Barbara Harrison.
The Invocation was offered by Police Chaplain Debbie Ivey.
I
The meeting was called to order by Mayor Stegall with the following Council Members
present: Bosetti, Dickerson, Jones, and Murray.
Also present were City Manager Starman, Assistant City Manager Tippin, City Attorney
Duvernay, Development Services Director Hamilton, Electric Utility Director Feider,
Economic Development Director Zauher, City Clerk Strohmayer, and Executive Assistant
Stribley.
PRESENTATION - Appreciation Plaque to Randy Memeo for service on the Redding
Planning Commission
(B-080-300)
Mayor Stegall presented a City of Redding Clock with appreciation plaque and a City
Council Proclamation to Randy Memeo commending him for eight years of service on the
Redding Planning Commission.
Mr. Memeo thanked the City Council for the opportunity to serve the community.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
I
Approval of Minutes - Regular and Special Meetings of April 15, 2008; and Special Meeting
of April 21, 2008
Approval of Payroll and Accounts Payable Registers
(A-050-100-500)
It is recommended that Accounts Payable Register No. 20, check numbers 861993 through
862467 inclusive, in theamountof$14,218,729.13, for the period of April 14, 2008, through
April 30, 2008; and Payroll Register No. 21 electronic deposit transaction numbers 228921
through 229779 and check numbers 539837 through 539965 inclusive, in the amount of
$2,475,942.15 for the period April 6, 2008, through April 19, 2008, be approved.
TOTAL: $16,694,671.28
Treasurer's Report - March 2008
(A-050-100-600)
Total Treasurer's Accountability
$140,612,108.94
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities
$260,308,278.65
I
ACR133 Report and Cash Reconciliation
(F-205-095-650)
It is the recommendation of the Finance Officer that the ACR133 Report and the Proof of
Cash Reconciliation for March 2008 be accepted.
Real Estate Listing Agreement - Cushman & Wakefield of California, Inc. for the Stillwater
Business Park
(E-050-500)
It is the recommendation of the Economic Development Director that the City Council
authorize the City Manag~r to execute a Real Estate Listing Agreement with Cushman &
Wakefield of California, Inc. for the Stillwater Business Park on a 6% commission basis for
a term of one-year beginning June 1,2008.
Council Member Jones advised he would vote no on this matter for consistency with
previous votes regarding the Stillwater Business Park.
5/6/2008
72
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Bosetti, Dickerson, Murray, and Stegall
Council Members - Jones
Council Members - None
Council Members - None
Amendment to Supply and Professional Services Agreement - EmeraChem Power, LLC for
the Redding Power Plant Unit 6 project
(E-120-150-676)
It is the recommendation of the Electric Utility Director that the City Council authorize the
Mayor to execute an Amendment to the Supply and Professional Services Agreement (C-
4901) with EmeraChem Power, LLC to provide an EMxTM emissions control system and
associated technical services for the Redding' Power Plant Unit No. 6 Project in the
approximate amount of $9,526,920.
I
Third Amendment to the Library Services Agreement - Library Services and Systems, LLC
(L-050)
It is the recommendation of the Community Services Director that the City Council authorize
the City Manager to execute the Third Amendment to the Library Services Agreement (C-
4556) with Library Services and Systems, LLC (LSSI) to update the operating budget for the
Redding Municipal Library and branch libraries (Burney and Anderson) to reflect annual
inflationary adjustments.
First Amendment to Authorization of Service #07-01 - Mead & Hunt
(A-090-100)
It is the recommendation of .the Transportation and Engineering Director that the City
Council approve the First Amendment to Authorization of Service #07-01 with Mead &
Hunt, Inc. to provide additional engineering services for construction of the wests ide
taxilane, Municipal Boulevard extension and t-hangar taxilane, and the reconstruction of
Taxiways A and B at Redding Municipal Airport in an amount not-to-exceed $58,000.
License Agreements - Experimental Aircraft Association and Hillside Aviation, Inc. for
Aviation Day 2008 at Benton Airpark
(A-090-020)
It is the recommendation of the Transportation and Engineering Director that the City
Council authorize the Mayor to execute License Agreements with Experimental Aircraft
Association and Hillside Aviation, Inc. for use of a portion of Benton Airpark to conduct
Aviation Day 2008, on Sunday, June 15,2008, from 7:00 a.m. until mid-afternoon.
I
Accept Improvements - The Villages at Shasta View Gardens Subdivision
(S-101-081)
It is the recommendation of the Transportation and Engineering Director that the City
Council accept as satisfactorily completed the remaining improvements for The Villages at
Shasta View Gardens Subdivision (S-15-04), located west of Shasta View Drive and south
of Tarmac Road, by Village Development Company, and that the City Clerk be instructed
to return securities to the developer.
Resolution - Accepting streets and improvement for Brooks Valley Subdivision
(S-070-230 & S-1 00-065)
It is the recommendation ofthe Transportation and Engineering Director that Resolution No.
2008-39 be adopted, a resolution ofthe City Council of the City of Redding accepting streets
for maintenance and operation in Brooks Valley Subdivision (S-42-90), located east of Twin
View Boulevard and north of Valley Ridge Drive, by Brooks Valley, LLC, that the
improvements be accepted as satisfactorily completed, and that the City Clerk be instructed
to return securities to the developer.
I
Resolution - Authorizing grant applications to the California Integrated Waste Management
Board
(G-I00-070 & S-070-200)
It is the recommendation ofthe Transportation and Engineering Director that Resolution No.
2008-40 be adopted, a resolution ofthe City Council of the City of Redding authorizing the
City Manager to submit and execute grant applications to the California Integrated Waste
Management Board through its Rubberized Asphalt Concrete Chip Seal Program in an
amount up to $300,000 the first year and $150,000 per year thereafter for street maintenance.
5 /612008
73
Third Amendment to Lease Agreement - Hawes River Acres
(C-070-100 & A-090-100)
It is the recommendation of the Transportation and Engineering Director that the City
Council approve the Third Amendment to the Lease Agreement with Hawes River Acres to
remove 389 acres of pasture land located on Redding Municipal Airport property from the
Hawes Lease in order to begin construction of the Stillwater Business Park.
I
Notice of Completion - Bid Schedule No. 4080, 2007 Sidewalk Repair Project
(B-050-020 & S-070-285)
It is the recommendation of the Transportation and Engineering Director that Bid Schedule
No. 4080 (Job No. 2297), 2007 Sidewalk Repair Project awarded to Frank Medina be
accepted as satisfactorily completed, and that the City Clerk be authorized to file a Notice
of Completion with the Shasta County Recorder. The final cost was $203,683.15.
License Agreement - The McConnell Foundation for use of Kutras Lake boat ramp
(S-070-050-050 & P-050-650)
It is the recommendation of the Transportation and Engineering Director that the City
Council authorize the Mayor to execute a License Agreement with The McConnell
Foundation to allow public use of the Kutras Lake boat ramp during the Cypress Bridge
Reconstruction Project.
Supplemental Public Road Crossing Agreement - Union Pacific Railroad re South
Bonnyview Road Widening Project
(T-100-300 & S-070-100-708)
It is the recommendation of the Transportation and Engineering Director that the City
Council authorize the Mayor to execute a Supplemental Public Road Crossing ~greement
with Union Pacific Railroad (UPRR) relative to the South Bonnyview Road Widening
Project and authorize the Mayor to accept an easement for the necessary right-of-way from
UPRR for widening the at-grade rail crossing at South Bonnyview Road at a cost of
approximately $830,000 and an additional $35,031 for the right-of-way.
I
Letter to Legislators - Federal Aviation Administration Reauthorization Bill
(L-040-070 & A-090-1 00)
It is the recommendation of the Transportation and Engineering Director that the City
Council authorize the Mayor to execute a letter to Senators Boxer and Feinstein and
Congressman Herger, opposing efforts by the International Association of Fire Fighters
(IAFF) to include new Aircraft Rescue and Fire Fighting (ARFF) standards in the Federal
Aviation Administration (FAA) Reauthorization Bill requiring airports (all sizes) to comply
with the National Fire Protection Association standards.
Resolution - Authorizing grant application to the U.S. Department of Transportation for
Small Community Air Service Development Program for Redding Municipal Airport
(G-100-070 & A-090-100)
It is the recommendation of the Transportation and Engineering Director that Resolution No.
2008-41 be adopted, a resolution of the City Council of the City of Redding authorizing the
City Manager to submit and execute all necessary documents for receive a federal grant to
the U.S. Department of Transportation through the Small Community Air Service
Development Program in the amount of $500,000 to aid in the expense of providing air
service between Redding Municipal Airport and Salt Lake City, and authorizing Mead &
Hunt to prepare the grant application.
I
Short-Term Water Transfer Agreements - Glenn Colusa Irrigation District and the
McConnell Foundation
(W -030-700)
It is the recommendation ofthe Municipal Utilities Director that the City Council authorize
the City Manager to execute an Option Agreement with Glenn Colusa Irrigation District and
a Water Use Agreement with The McConnell Foundation to provide supplemental surface
water supplies to the City to make up for cutbacks to the City's Federal Water Service
Contract supply (75% of the Buckeye Contract supply) for a period of one year.
MOTION: Made by Council Member Dickerson, seconded by Council Member Murray,
that all the foregoing items on the Consent Calendar be approved and adopted as
recommended above with the exception of the item approved by separate vote as indicated
above.
5/612008
74
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Bosetti, Dickerson, Jones, Murray, and Stegall
Council Members - None
Council Members - None
Council Members - None
Resolution Nos. 2008-39, 2008-40, and 2008-41 are on file in the Office of the City Clerk.
PUBLIC HEARING - Community Development Block Grant (CDBG), and Home
Investment Partnerships (HOME) Program
RESOLUTION - Approving 2008-09 Action Plan and funding recommendations
(G-l 00-030-1 OO/G-l 00-030-053/G-l 00-075)
The hour of7 :00 p.m. having arrived, Mayor Stegall opened the public hearing regarding the
2008-09 Action Plan and funding recommendations for the Community Development Block
Grant (CDBG) Program and the Home Investment Partnerships (HOME) Program.
I
The following document is on file in the Office of the City Clerk:
Affidavit of Publication - Notice of Public Hearing
City Clerk Strohmayer advised that no protests were received.
Assistant City Manager Tippin advised that, as an "entitlement city," Redding is required
each year, by the Department of Housing and Urban Development (HUD), to develop and
implement plans, programs, and projects that provide decent housing and economic
opportunities for low- and moderate-income individuals and families. The Community
Development Advisory Committee (CDAC) recently concluded its review process and
finalized recommendations for use of CDBG and HOME Programs funds for the 2008-09
program year and has submitted an Action Plan (Plan) for consideration.
Mr. Tippin related that this year, the total amount available for CDBG allocations is
approximately $826,199 and $540,132 in HOME funds, and he reviewed allocated funding
amounts for various activities.
I
Mr. Tippin stated that the CDAC and staff recommend that the City Council adopt a
resolution accepting the proposed 2008-09 Action Plan and funding recommendations
regarding CDBG and HOME funds as contained in the Action Plan, and authorize the City
Manager to execute all necessary papers and file the Plan with HUD.
Maggie John, Executive Director of Shasta Women's Refuge, urged the City Council to
reconsider CDBG contributions to the Women's Refuge which were denied this year. She
expressed concern that the rationale for denial focused on the ability of the Women's Refuge
to obtain additional revenue through fund-raising efforts. She maintained that fund-raising
abilities and/or opportunities should not be considered when determining distribution of
CDBG monies. Ms. John suggested that because 82% of sexual assault victims and 62% of
domestic violence victims using the services at the Women's Refuge live in the City, that
the City Council add the Women's Refuge to its Biennial budget as a line item to ensure this
valuable service continues to be available to City residents.
Mayor Stegall, and Council Members Dickerson and Bosetti concurred that organizations
should not be penalized based on fund-raising efforts and urged staff to consider adding a
line item for the Women's Refuge to the upcoming budget review.
Mayor Stegall determined that no other individual wished to address this matter and closed
the public hearing.
I
City Manager Starman advised that this matter will be discussed during the mid-year budget
reVIew.
MOTION: Made by Council Member Dickerson, seconded by Council Member Bosetti,
adopting Resolution No. 2008-42, a resolution of the City Council of the City of Redding
accepting the 2008-09 Action Plan and funding recommendations relating to the Community
Development Block Grant Program, the Home Investment Partnerships Program, and other
5 /612008
75
federal programs, and authorizing the City Manager to execute all necessary documents and
submit the Action Plan to the u.s. Department of Housing and Urban Development.
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. 2008-42 is on file in the Office ofthe City Clerk
I
APPOINTMENT - Resident Advisory Board Member to the Redding Housing Authority
(B-080-650-275 & H-150)
MOTION: Made by Council Member Murray, seconded by Council Memb~r Jones,
appointing Monique Taylor as Resident Advisory Board Member to the Rl:?dding Housing
Authority to serve an unexpired term ending December 31, 2008.
The Vote: Unanimous Ayes
UPDATE ON MAJOR PROJECTS - Stillwater Business Park
(A-050-080 & E-050-500)
Economic Development Director Zauher related that the Stillwater Business Park (Park) bid
package was made available on April 18, 2008, and will be opened May 22, 2008. He stated
that the bid award recommendation should come before the City Council for consideration
on June 3, 2008, and if approved, Park ground breaking should commence June 12, 2008.
He advised that marketing of the Park is underway and the process components are moving
into place.
No action was required on this informational item.
I
AGREEMENT - County of Shasta for the Sexual Assault Response Team
(P-150-150 & S-OlO)
City Manager Starman recalled that in 2007, the City Council authorized the City to partner
with Shasta County in preserving the much-needed program referred to as the Sexual Assault
Response Team (SART). SART is composed of nurses trained to perform forensic
examinations on victims of sexual assault. While SART has historically been the
responsibility of Shasta County, the City paid $500 for each medical examination totaling
approximately $15,000 per year. However, in January 2007, the City Council approved a
one-time funding contribution of $50,000, sharing the cost with Shasta County, to ensure
preservation of the program. He stated that the County has asked the City to share in funding
the program again this year in the amount of $34,000.
Mr. Starman recommended that the City Council authorize the City Manager to execute an
Agreement with the County of Shasta to provide partial funding in the amount of $34,000
for the Sexual Assault Response Team (SART) for fiscal year 2008-09.
MOTION: Made by Council Member Murray, seconded by Council Member Dickerson,
authorizing the City Manager to execute an Agreement with the County of Shasta to provide
partial funding in the amount of$34,000 for the Sexual Assault Response Team (SART) for
fiscal year 2008-09. The Vote: Unanimous Ayes
I
INCENTIVES TO STIMULATE RESIDENTIAL CONSTRUCTION ACTIVITY
(F -205-600/E-090-1 00/G-1 00-080)
City Manager Starman pointed out that new home construction has declined dramatically
throughout the nation, and Redding, is no exception. Likewise, he said permit activity in the
City has experienced a significant decline from more than 600 permits being issued just two
years ago, to 200 permits issued last year.
Mr. Starman related that when approving incentives for the City's target neighborhoods
recently, the City Council expressed interest in providing incentives throughout the City. In
response, staffis proposing five possible incentives geared to the single-family homeowner
including remodels, renovations and new construction. The incentives are as follows:
1. Reduce the cost of certain building fees by 50% for a four-month period;
2. Delay collection of all City development impact fees on new residential construction
until final inspection is complete (to improve cash flow);
5/612008
76
3. Enhance Redding Electric Utility's (REU) Rebate Program by up to 50% for the four-
month period for items such as air conditioners and residential insulation;
4. Decrease the interest rate to 0% for the City's Homeowner Rehabilitation Loan
Program for the four-month period; and
5. Delay the scheduled Construction Cost Index (CCI) adjustment for some of the
development fees for July 2008 through January 2009.
Mr. Starman stated that the incentives are fixed for a four-month period to encourage
construction prior to the close of 2008 to generate jobs as soon as possible. He explained
that at the end of 2008, fees would return to normal processing fees.
Mr. Starman recommended that the City Council approve the incentive proposals for
residential construction, in concept, and direct the City Attorney's office to prepare the
appropriate ordinance and resolutions.
I
Council Member Murray expressed concern that the City would not be recouping the
necessary costs associated with the permitting process.
Tim Maclean of Sharrah, Dunlap, Sawyer, and Mary Machado of Shasta Voices, urged the
City Council to approve the incentives to stimulate residential construction.
MOTION: Made by Council Member Jones, seconded by Council Member Bosetti,
approving the residential construction incentive proposal, in concept, and directing the City
Attorney's office to prepare the appropriate ordinance and resolutions.
The Vote: Unanimous Ayes
TOURISM MARKETING BUSINESS IMPROVEMENT DISTRICT
(A-170-015-004)
Support Services Director Kersten recalled that the City Council, at its meeting of December
4,2007, conceptually approved formation of the Tourism Marketing Business Improvement
District (TMBID) to provide tourism marketing for the hotels in the City. He further recalled
that on March 18, 2008, Council approved a public meeting for this evening and a public
hearing to be held June 3, 2008. Mr. Kersten said formation of a 1 % lodging assessment of
the TMBID could provide up to $1 00,000 annually for promotions, and Redding hoteliers
have demonstrated their approval with a 90% approval rating in favor of formation of the
TMBID.
I
Mr. Kersten stated that in light of the fact that no public comment was received this evening,
no further action was necessary until the public hearing on June 3, 2008.
MONTHLY FINANCIAL REPORT - Electric Utility
(B-130-070)
Electric Utility Director Feider commented that the financial results for March 2008 are
slightly less positive. He said that retail power sales revenue was $1,149,746 (1.8%) below
projections and wholesale power sales through March totaled $22,928,058 or 133.2% above .
projections. Operating revenue after energy costs was $3,328,620 or 14.5% below
expectations. The total cost of energy through March was $25,386,991 or 42.4 % above plan.
The Utility's negative net operating results through March are $3,680,056.
Mr. F eider recommended that the City Council accept the Electric Utility Monthly Financial
Report.
It was the consensus of the City Council to accept the Monthly Financial Report for the
Electric Utility Department through March 2008.
I
SALE OF REDDING POWER PLANT LIQUID PROPANE AND ASSOCIATED
STORAGE F ACILITIES/EQUIPMENT
(E-120-150)
Electric Utility Director Feider recalled that in 1993, Redding Electric Utility (REU)
purchased backup liquid propane fuel facilities for the Redding Power Plant consisting of
five storage tanks with a 273,248 gallon capacity. Over the past 14 years, REU has never had
to utilize the backup propane system. He said that since California deregulation of electricity
systems, the backup system is no longer required by law and the proceeds from sale of the
propane and the associated facilities is estimated at $500,000.
5 16/2008
77
Mr. Feider recommended that the City Council authorize staff to solicit offers for the
purchase of liquid propane, associated storage facilities and equipment located at the
Redding Power Plant pursuant to Redding Municipal Code Chapter 4.20, and apply proceeds
to REU's operating reserves.
MOTION: Made by Council Member Murray, seconded by Council Member Bosetti,
authorizing staff to solicit offers for the purchase of Redding Electric Utility's (REU) liquid
propane and associated storage facilities and equipment located at the Redding Power Plant
pursuant to Redding Municipal Code Chapter 4.20 and apply the proceeds to REU's
operating reserves. The Vote: Unanimous Ayes
I
GENERAL FUND MONTHLY FINANCIAL REPORT
(B-130-070)
City Manager Starman advised that the weak economy continues to soften sales tax and
building-related fees are in a downward trend. He stated that a more thorough update will
be provided during the mid-year budget review. However, Mr. Starman pointed out that
property tax allocations are very close to projections.
Mr. Starman reported that total revenueatthe end of March was $44.5 millionor$2,014,911
(4.4%) below staffs cash flow projection. Expenditures at month end, excluding
encumbrances, total $53,437,054 or $8,209,455 (13.4%) below staffs original projection.
Encumbrances total $2,342,546.
Mr. Starman recommended that the City Council accept the General Fund's Monthly
Financial Report for March 2008.
It was the consensus of the City Council to accept the Monthly Financial Report for the
Electric Utility Department through March 2008.
I
AWARD REQUEST FOR PROPOSALS - Request for Proposals Schedule No. 4125,
Construction Management Services for the Hilltop Drive Streetscape Project; and
CONSULTANT SERVICES AGREEMENT - Caltrop Corporation
(B-050-100 & A-170-015-003)
Assistant City Manager Tippin related that in cooperation with the Hilltop Hotel Business
Improvement District (HHBID), the City developed design documents to improve the
aesthetics ofthe Hilltop Drive corridor between Cypress A venue and the SR 44 overcrossing.
He related that the improvements will include undergrounding utilities, new sidewalks and
driveways, new street-side landscape, and landscaped medians. Mr. Tippin related that a
Request for Proposal (RFP) for architectural and engineering services for the project was
circulated in February, and, after careful review, Caltrop Corporation was selected to provide
those services. He provided a brief review of the process used to evaluate and select the
most qualified bidder based on experience, an understanding of the scope of work, ability to
meet schedules, maintain the projected budget, and commitment to the project.
Mr. Tippin recommended that Request for Proposals Schedule No. 4125, Construction
Management Services for the Hilltop Drive Streetscape Project be awarded to Caltrop
Corporation in an amount not-to-exceed $319,983.19, to provide construction management
services for the Hilltop Drive Streetscape Project, that staff be authorized to draft a
consultant services agreement and that the Mayor be authorized to execute a Consultant
Services Agreement with Caltrop Corporation for same.
I
MOTION: Made by Council Member Bosetti, seconded by Council Member Murray,
awarding Request for Proposals Schedule No. 4125, Construction Management Services for
the Hilltop Drive Streetscape Project to Caltrop Corporation in an amount not-to-exceed
$319,983.19, to provide construction management services for the Hilltop Drive Streetscape
Project, authorize staff to draft a consultant services agreement, and that the Mayor be
authorized to execute a Consultant Services Agreement with Caltrop Corporation for same.
The Vote: Unanimous Ayes.
ORDINANCE - Amending Redding Municipal Code Chapter 2.20 relative to the duties and
functions for the elected and appointed positions of City Treasurer and Administrator of the
Office of the City Treasurer
(A -050-100)
City Attorney Duvernay provided highlights of the Report to City Council dated April 18,
2008, incorporated herein by reference, stating that the duties and functions of the elected
5/6/2008
78
City Treasurer have not been reviewed or changed for the last 33 years. He stated that the
proposed ordinance codifies the status quo without changing the current structure of the
department or the duties and functions of the City Treasurer. Mr. Duvernay said, however,
it creates the position of Administrator of the Office of the City Treasurer and designates
certain duties and functions of that portion of the department.
Mr. Duvernay recommended that the City Council offer an ordinance for first reading
amending the Redding Municipal Code Chapter 2.20-City Treasurer by repealing Sections
2.20.010 through 2.20.080 and adding new Sections 2.20.010 through 2.20.090 relating to
defining and describing the duties of the elected position of City Treasurer and the appointed
position of Administrator of the Office of the City Treasurer.
I
MOTION: Made by Council Member Murray, seconded by Council Member Dickerson
amending the Redding Municipal Code Chapter 2.20-City Treasurer by repealing Sections
2.20.010 through 2.20.080 and adding new Sections 2.20.010 through 2.20.090 relating to
defining and describing the duties of the election position of City Treasurer and the newly-
. established appointed position of Administrator of the Office of the City Treasurer.
The Vote: Unanimous Ayes
Council Member Murray offered Ordinance No. 2408 for first reading, an ordinance of the
City Council ofthe City of Redding amending Redding Municipal Code Chapter 2.20-City
Treasurer by repealing Sections 2.20.010 through 2.20.080 and adding new Sections
2.20.010 through 2.20.090 relating to defining and describing the duties of the elected
position of City Treasurer and the newly-created, appointed position of Administrator of the
Office of the City Treasurer.
MOTION: Made by Council Member .Murray, seconded by Council Member Dickerson,
that the full reading of Ordinance No. 2408 be waived, and that the City Attorney be
instructed to read the full title. The Vote: Unanimous Ayes
RESOLUTION - Appropriating Park Development funds for legal fees and costs associated
with defending the lawsuit filed by Dale Stickney Construction, Inc. relative to the Redding
Sports Park
(B-130-070/P-050-600-200/L-I00)
City Attorney Duvernay recalled that in 2004, the City Council approved the sale of lease
revenue bonds to provide funding for construction of City athletic fields and park projects,
including the Sports Complex (Big League Dreams) and four soccer fields. He pointed out
that through the bid process, Dale Stickney Construction was selected to construct the Sports
Complex and soccer fields and, due to a variety of issues, litigation ensued.
I
Mr. Duvernay stated that the litigation with Dale Stickney Construction has reached the
mediation process, but and additional $750,000 (to be used for legal fees and/or expenses of
defending the litigation) is needed at this time. He advised that appropriating Park
Development Funds for this purpose (which represent the final proceeds of the Lease
Revenue Bonds in 2004 sold for the Sports Complex and soccer fields construction),
constitutes an appropriate use. Mr. Duvernay advised that a potential settlement is under
consideration through a mediator and it is hoped the litigation issue will be resolved.
Mr. Duvernay recommended that the City Council adopt a resolution appropriating $750,000
in Park Development Funds for legal fees and/or expenses of defending the Dale Stickney
Construction v. City of Redding litigation.
Leona McCoach, Community Services Advisory Commission (CSAC) member, opposed
expenditure of Park Development Funds for this purpose, pointing out that the Commission
was not allowed to review the report or make recommendations. She explained that this
amount constitutes almost 100% of the funding for this fiscal year for parks, that it may
impact the City's credibility when collecting park funds from developers if funds are to be
used for anything other than parks, and there is no stipulation to repay the Park fund. She
urged the City Council to insist that the funds be repaid to the Park fund at a some point.
I
Council Member Murray concurred with the CSAC, stating that he would oppose the
resolution unless repayment to the Park fund was made a condition of approval.
5 /6/2008
79
I
MOTION: Made by Council Member Murray, seconded by Council Member Stegall,
adopting Resolution No. 2008-43, a resolution of the City Council ofthe City of Redding,
approving and adopting the 3P' amendment to City Budget Resolution No. 2007-127,
appropriating $750,000 from the Park Development Fund for legal fees and costs associated
with defending the lawsuit filed by Dale Stickney Construction, Inc., for fiscal year 2007-08,
and that the transferred funds be treated as an amount of money that should be repaid to the
Parks Fund, and directing staff to return at a future date with the methodology ofrepayment
to the Park Fund. The Vote:
AYES: Council Members -Murray and Stegall
NOES: Council Members - Bosetti, Dickerson, and Jones
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Motion failed for lack of a majority.
MOTION: Made by Council Member Jones, seconded by Council Member Bosetti,
adopting Resolution No. 2008-43, a resolution of the City Council of the City of Redding,
approving and adopting the 3pt amendment to City Budget Resolution No. 2007-127,
appropriating $750,000 from the Park Development Fund for legal fees and costs associated
with defending the lawsuit filed by Dale Stickney Construction, Inc. for fiscal year 2007-08.
The Vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members - Bosetti, Dickerson, and Jones
Council Members - Murray and Stegall
Council Members - None
Council Members - None
Resolution No. 2008-43 is on file in the Office of the City Clerk
I
RESOLUTION - Amending the Memorandums of Understanding (MOU) with Service
Employees International Union (SEIU)-Clerical, Technical, and Professional Employees and
Supervisory/Confidential Employees Units
(P-100-050-124 & P-100-050-126)
Personnel Director Johnson provided highlights of the Report to City Council dated April
25,2008, advising that contract negotiations with the Service Employees International Union
(SEIU)-Clerical, Technical, and Professional Employees and Supervisory/Confidential
Employees Units are complete. She stated that the major provisions of the amended
Memorandums Of Understanding (MOU's) are as follows:
1. The MOU's term is five and one-half years;
2. The cost-of-living adjustments are. 72% effective April 6, 2008, 4% effective January
1, 2009, 3% effective January 1, 2010, 3% effective January 1, 2001, and 3.5%
effective January 1,2012 through the end of the term of the MOUs;
3. Employees hired after May 6, 2008, will pay 100% of the retiree premium for Health
and Welfare Benefits should they elect to participate in the City's Benefit program
upon retirement;
4. Employees will pay 10% of their Health and Welfare Benefits Premium effective
April 6, 2008, and receive an offset of $1 ,512 for the first year only;
5. Prescription drug co-pay increases effective July 1, 2008, and July 1,2009;
6. Retirement enhancement through the Public Agency Retirement System (PARS)
2.7% at 55 years of age (lO-years vested with the City of Redding) effective January
1, 2009 (the employees pay for this enhancement);
7. Increase in annual uniform allowance from $400 to $600 for Police and Fire
Miscellaneous employees and from $700 too $800 for the Parking Violation Officer
to be paid on a bi-weekly basis.
I
Ms. Johnson stated there were additional changes, such as removal ofthe language regarding
annual equity studies.
Ms. Johnson recommended that the City Council adopt a resolution amending the SEIU
MOUs for a term of five and one-half years, effective April 6, 2008.
Willie Preston, Shasta, thanked the City Council for addressing the GASB45 issue by
eliminating retirement medical benefits for those hired after May 6,2008: He voiced concern
5/6/2008
80
regarding annual cost ofliving (COLA) increases, the use of in-house employees to negotiate
employment contracts citing a possible conflict of interest, and questioned the net fiscal
.impact to the City. He suggested that a set dollar amount be offered to existing employees
to pay for medical benefits rather than percentages of the benefit.
In response, City Manager Starman clarified that the negotiations and resulting contracts are
consistent with the City's 10- Year Financial Plan, although future predictions in the economy
would be very difficult at this juncture. He advised that with regard to negotiation services,
this and past Councils have determined that in-house personnel have provided the best results
in the negotiation process with the most reasonable cost, and the City Council provides
direction in the process. He observed that with each 1 % increase in the contracts with SEIU
(representing more than 350 employees) it equates to approximately $230,000 annually.
I
Council Member Murray added that the City currently is holding some positions vacant in
a soft-hiring freeze, but Council is working diligently to bring costs into line with taxpayer
expectations which cannot be done overnight.
Council Member Jones stated that he could not support the cost-of-living-adjustments
provided in the contracts and would be voting no.
Mayor Stegall and Council Members Bosetti and Dickerson believed negotiations concluded
on a positive note for the taxpayers, pointing out that it is a give-and-take process.
MOTION: Made by Council Member Murray, seconded by Council Member Bosetti,
adopting Resolution No. 2008-44, a resolution of the City Council of the City of Redding,
approving the provisions of the Memorandums of Understanding entered into with the
Service Employees International Union-Clerical, Technical, and Professional Employee's
unit and the Supervisory/Confidential Employees' Unit, effective April 6, 2008. The Vote:
AYES: Council Members - Bosetti, Dickerson, Murray, and Stegall
NOES: Council Members - Jones
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2008-44 is on file in the Office ofthe City Clerk
I
ORAL REPORT - City Council Member attendance at conferences/meetings reimbursed at
City expense (Requirement of Assembly Bill 1234)
(A-050-060)
Mayor Stegall attended the Northern California Power Agency Federal Policy Forum in
Washington, D.C. on April 20 and 21, 2008, to lobby California's Senators and
Representati ves.
Council Members Jones and Bosetti reported attending Joe Gonsalves and Sons' (City's
lobbyist) Client Cities 2008 Appreciation Dinner and legislative update in Sacramento on
April 29, 2008.
ADJOURNMENT
There being no further business, at the hour of9: 13 p.m., Mayor Stegall declared the meeting
adjourned.
APPROVED
~~~
I
ATTEST:
5 /6/2008