HomeMy WebLinkAboutMinutes - City Council - 2008-11-04
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City Council, Regular Meeting
Civic Center Council Chambers
777 Cypress A venue
Redding, California
November 4, 2008 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Fran Jenkins.
The Invocation was offered by Police Chaplain Ray Foust.
The meeting was called to order by Mayor Stegall with the following Council Members
present: Bosetti, Dickerson, Jones, and Murray.
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Also present were City Manager Starman, Assistant City Manager Tippin, City Attorney
Duvernay, Development Services Director Hamilton, Transportation and Engineering
Director Crane, Electric Utility Director Hauser, Finance Director Strong, City Clerk
Strohmayer, Assistant City Clerk Mize, and Executive Assistant Stribley.
PUBLIC COMMENT
(C-070-200)
Naval Senior Chief Petty Officer Rob Burroughs requested that the City consider donating
land in the area of Knighton Road near the location of the new Veterans Home and the
Redding Municipal Airport for a Northern California Veterans Museum and Heritage Center.
He said the purpose of the museum and heritage center is to honor veterans as well as
provide a venue to educate the youth of the community about the sacrifices veterans have
made for the country.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
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Approval of Minutes - Regular and Special Meetings of October 21, 2008
Approval of Payroll and Accounts Payable Registers
(A-050-100-500)
It is recommended that Accounts Payable Register No.8, check numbers 867754 through
868155 inclusive, in the amount of $10,729,304.89, for the period of October 18, 2008,
through October 31,2008; and Payroll Register No.8 electronic deposit transaction numbers
241571 through 242453 and check numbers 541791 through 541922 inclusive, in the amount
of $2,735,596.44 for the period October 5,2008, through October 18,2008, be approved.
TOTAL: $13,464,901.33
Treasurer's Report - September 2008
(A-050-100-600)
Total Treasurer's Accountability
$146,182,704.81
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities
$300,697,012.90
ACR133 Report and Cash Reconciliation
(F-205-095-650)
It is the recommendation of the Finance Director that the ACR133 Report and the Proof of
Cash Reconciliation for September 2008 be accepted.
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Award of Bid - Bid Schedule No. 4184, two boiler feedwater pumps for the Redding Power
Plant Unit 6 Generation Project
[B-050-100 & E-120-150-676]
It is the recommendation of the Electric Utility Director that Bid Schedule No. 4184, two
boiler feedwater pumps for the Redding Power Plant Unit 6 Generation Project be awarded
to Sulzer Pumps, Inc. in the amount of $314,833.45 including sales tax but excluding
delivery costs estimated in the amount of $2,000 and $3,462 for the waiver of progress
payments.
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Reliability Standards Performance Agreement - Sacramento Municipal Utility District
[E-090]
It is the recommendation of the Electric Utility Director that the City Council authorize the
Electric Utility Director to execute the Reliability Standards Performance Agreement with
the Sacramento Municipal Utility District (SMUD) to implement new Reliability Standards
recently enacted by the Federal Energy Regulatory Commission (FERC) relative to possible
future fines.
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Resolution - Prohibiting parking in designated areas pursuant to Redding Municipal Code
Section 11.240.040
[P-030-250]
It is the recommendation of the Police Chief that Resolution No. 2008-175 be adopted, a
resolution of the City Council of the City of Redding prohibiting parking on certain
designated areas of Oasis Road, Shasta View Drive and Hilltop Drive pursuant to Redding
Municipal Code (RMC) Section 11.24.040 and correcting an error from the changes adopted
on June 3, 2008.
Resolution - Accepting and appropriating Highway Safety Improvement Program funding
for widening Buenaventura Boulevard at State Route 273
[G-1 00-070/B-130-070/S-070-1 00-065]
It is the recommendation of the Transportation and Engineering Director that the City
Council accept a grant from the Highway Safety Improvement Program (HSIP) in the amount
of $708,750 to fund the Buenaventura Boulevard Widening at State Route 273 Project
(Project).
It is further recommended that Resolution No. 2008-176 be adopted, a resolution oftheCity
Council of the City of Redding approving and adopting the 45th amendment to City Budget
Resolution No. 2007-127 accepting and appropriating $708,750 for the Project for fiscal year
2008-09.
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Authorization of Service #08-04 - Mead & Hunt for Phase Two Design Services for runway
safety area improvements at Benton Airpark, C-4389
[A-090-020]
It is the recommendation of the Transportation and Engineering Director that the City
Council approve Authorization of Service #08-04 with Mead & Hunt, Inc. for Phase Two
Design Services for runway safety area improvements at Benton Airpark in the amount of
$141,800 subject to receipt of a grant from the Federal Aviation Administration (FAA) for
95% ofthe amount and a future state grant for 2.5% ofthe necessary funds.
Final Map - Preserve Development Subdivision
[S-101-131]
It is the recommendation of the Transportation and Engineering Director that the City
Council approve the Final Map for the Preserve Development Subdivision, (S-1-06), located
at Preserve Boulevard and Airport Road by Clover Creek Development, LLC, and that the
City Clerk be instructed to file the map with the Shasta County Recorder.
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Resolution - Authorizing submittal of an application to the California Integrated Waste
Management Board for a Tire-Derived Product Grant FY 2008-09 (Seventh Cycle)
[G-1 00-170 & P-150-050-500]
It is the recommendation of the Municipal Utilities Director that Resolution No. 2008-177
be adopted, a resolution ofthe City Council ofthe City of Redding approving submittal of
an application for grant funds in the amount of $65,000 to $68,000 to the California
Integrated Waste Management Board for a Tire-Derived Product Grant FY 2008-09 (Seventh
Cycle) and that the City Manager be authorized to execute all necessary documents.
Agreement - Basic Laboratory of Redding for professional laboratory services to analyze
various water, wastewater, and soil samples
[W-OlO & W-030]
It is the recommendation of the Municipal Utilities Director that the City Council approve
the agreement with Basic Laboratory of Redding in the estimated amount of$130,000 per
year, pursuant to City Council Policy No. 1501, to provide professional laboratory services
to analyze drinking water, surface water, wastewater, groundwater, sludge, and landfill
leachate samples, and authorize the Purchasing Officer to execute same.
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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. The Vote:
AYES: Council Members - Bosetti, Dickerson, Jones, Murray, and Stegall
NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
MONTHLY FINANCIAL REPORT - Electric Utility
(B-130-070)
Electric Utility Director Hauser related that the financial results for the Redding Electric
Utility (REU) for September 2008 are slightly less positive. He said that retail power sales
revenue was $620,200 (2.3%) above projections and wholesale power sales through
September totaled $11,564,820 or 142.9% above projections. Operating revenue after energy
costs was $234,934 or 1.7% below expectations. The total cost of energy through September
was $12,494,030 or 57.2% above plan. The Utility's net operating results through September
are $5,551,222.
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Mr. Hauserrecommended that the City Council accept the Electric Utility Monthly Financial
Report.
In response to Council Member Bosetti, Mr. Starman advised that due to the current financial
crisis throughout the nation, the approved 30-year Take and Pay Contract with Citigroup for
natural gas was not executed. He stated that it would probably be at least a year or two
before the financial picture stabilized and, in the interim, the City would negotiate the sales
as best it could. He added that the problem has been exacerbated by a very low hydro power
year and would continue to decline if an additional year oflimited rain was experienced. He
advised that staff will bring a more detailed report on the financial status of REU and the
possibility of increased rates in the very near future.
Mr. Hauser related that Assembly Bill 32 (AB32) "California Global Warming Solutions
Act of 2006" that proposes to reduce greenhouse gas emissions to 1990 levels by the year
2020, has the potential to create significant rate changes for REU customers. He believed
that once a Scoping Plan was developed by the California Air Resources Board, the impacts
to ratepayers would be more defined.
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MOTION: Made by Council Member Murray, seconded by Council Member Jones,
accepting the Electric Utility Monthly Financial Report for September 2008.
The Vote: Unanimous Ayes
GENERAL FUND MONTHLY FINANCIAL REPORT - September 2008
[B-130-070]
City Manager Starman advised that the weak economy continues to soften sales tax and
building-related fees and although the State just adopted a new budget, it is projecting that
there will be an additional $10 billion deficit due to declining property tax revenue. The
Governor called a special session ofthe Legislature to address the projected revenue shortfall
and cities and counties are bracing for the possibility that their budgets, already stretched to
unhealthy limits, will be further impacted.
Finance Director Strong reported that total revenue at the end of September was $14.1
million or $624,645 (4.3%) below staffs cash flow projection. Expenditures at month end,
excluding encumbrances, total $20,057,365 or $1,152,960 (6.0%) below staffs original
projection. Encumbrances total $2,724,480. He stated that property tax revenues were as
anticipated, but the sales tax, Transient Occupancy Tax (TOT), and building permit fees
were significantly reduced.
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Mr. Strong recommended that the City Council accept the General Fund's Monthly Financial
Report for September 2008.
Council Member Bosetti expressed concern that the State would appropriate the City's
financial reserves set aside over the years for such financial crises.
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MOTION: Made by Council Member Jones, seconded by Council Member Bosetti,
accepting the General Fund Monthly Financial Report through September 2008.
The Vote: Unanimous Ayes
ADJOURNMENT
There being no further business, at the hour of7:31 p.m., Mayor Stegall declared the meeting
adjourned.
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APPROVED
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ATTEST:
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City Clerk
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11/4/2008