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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1989-10-03 424 10/3/89 City Council, Regular Meeting Council Chambers Redding, California October 3, 1989 7:00 p.m. The Pledge of Allegiance to the Flag was led by City Attorney Hays. The Invocation was offered by Pastor Ron Smith of the First Baptist Church. The meeting was called to order by Mayor Carter with the following Council Members present: Buffum, Dahl, Fulton, and Carter. Council Member Johannessen was absent. Also present were City Manager Christofferson, Assistant City Manager McMurry, City Attorney Hays, Director of Planning and Community Development Perry, Director of the Electric Utility Lindley, Resources Manager Coleman, Director of Finance Downing, Director of Parks and Recreation Riley, Acting Director of Public Works Aasen, Director of Information Systems Kelley, Airports Director Ruff, Senior Associate Planner King, Transportation Coordinator Duryee, Assistant City Clerk Strohmayer, City Clerk Nichols, and Secretary to the City Council Moscatello. PROCLAMATION - The Salvation Army's Centennial Celebration (A-050-060-600) Mayor Carter acknowledged the work the Salvation Army has done worldwide and its charitable role in Redding. Captain James Baker of The Salvation Army stated that the Salvation Army has a thrift store and provides services such as food, clothes, gasoline, bus fare, crisis intervention, and emergency services, as well as being a church. MOTION: Made by Council Member Dahl, seconded by Council Member Fulton, to adopt a proclamation of the Mayor and City Council of the City of Redding, California, congratulating The Salvation Army as it celebrates 100 years of worldwide community service. The Vote: Unanimous Ayes Council Member Johannessen arrived. CHARLESTON DISASTER RELIEF (A-050-060) Mayor Carter noted that the Salvation Army is aiding the City of Charleston, South Carolina, and the Caribbean in the aftermath of Hurricane Hugo. Mayor Carter asked the media to get the word out and help raise funds for the disaster relief. Captain James Baker, of The Salvation Army, stated that South Carolina and the Caribbean are devastated. Captain Baker stated that it is especially frustrating because electric lines are down, airports are closed, and it is very difficult to get supplies in. He stated that the Salvation Army has 19 feeding sites in South Carolina, they have served over 211,000 meals, and the Salvation Army is only one of many organizations aiding Charleston. Captain Baker stated that what is needed from this area is cash. He explained that the Salvation Army can buy goods wholesale or with discounts and administrative fees are not taken out of donations for a disaster relief such as this. Captain Baker thanked Council for their concern. 425 10/3/89 CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Minutes - Adjourned Regular Meeting of September 5, 1989 Regular Meeting of September 5, 1989 Adjourned Regular Meeting of September 12, 1989 Regular Meeting of September 19, 1989 Approval of Payroll and Accounts Payable Register (A-050-100-500) Recommend that Accounts Payable Register No. 06, check numbers 148732 through 149228 inclusive, in the amount of $3,219,884.02, be approved and paid, and Payroll Register No. 06, check numbers 284628 through 285305 inclusive, in the amount of $723,973.04, and Automatic Payroll Deposits in the amount of $144,000.58, for the period September 3, 1989, through September 16, 1989, be approved. TOTAL: $4,087,857.64 Resolution - Renaming Angels Street to Chancellor Boulevard (S-070-230) It is the recommendation of the Planning Director that Resolution No. 89-325 be adopted, a resolution of the City Council of the City of Redding renaming Angels Street, between Hacienda Street and Shasta View Drive, to Chancellor Boulevard. Set Public Hearing - General Plan Amendment Application GPA-8-89, by C.D. Nelson and the City of Redding (3500 and 3555 Santa Rosa Way) (G-030-010) It is the recommendation of the Planning Director that a public hearing be set for 7:00 p.m., October 17, 1989, to consider GPA-8-89, a request to reclassify property to "Retail" and "Office." Set Public Hearing - Rezoning Application RZ-12-89, by C.D. Nelson (3500 and 3555 Santa Rosa Way) (L-010-230) It is the recommendation of the Planning Director that a public hearing be set for 7:00 p.m., October 17, 1989, to consider RZ-12-89, a request to rezone property to "R-1" Single Family Residential District, "U" Unclassified District and "C1-B10-F" Neighborhood Commercial District." Set Public Hearing - General Plan Amendment Application GPA-11-89, by Kenneth Helm (870 Hartnell Avenue) (G-030-010) It is the recommendation of the Planning Director that a public hearing be set for 7:00 p.m., October 17, 1989, to consider GPA-11-89, a request to reclassify property to "Retail." Set Public Hearing - 1989 Community Development Block Grant Grantee Performance Report (G-100-030-020) It is the recommendation of the Planning Director that a public hearing be set for 7:00 p.m., October 17, 1989, to consider the 1989 Community Development Block Grant Performance Report. Set Public Hearing - Community Development Block Grant Program Amendment (G-100-030-034) It is the recommendation of the Planning Director that a public hearing be set for 7:00 p.m., October 17, 1989, to consider the Community Development Block Grant Amendment to replace the Parkview Area Park Project. 426 10/3/89 Award of Bid - Bid Schedule No. 2241, 12kV URD Conductor (B-050-100) It is the recommendation of the Electric Director that Bid Schedule No. 2241, 12kV URD Conductor, be awarded to the evaluated low bidder, The Okonite Company, in the amount of $58,819.82. Funds for this purchase are included in the 1989/90 budget. Award of Bid - Bid Schedule No. 2242, Three Phase Pad Type Distribution Transformers (B-050-100) It is the recommendation of the Electric Director that Bid Schedule No. 2242, three phase pad type distribution transformers, be awarded to the second evaluated low bidder, Westinghouse Electric Supply Company, in the amount of $105,550.56. The low bidder was not in compliance with the requirements of the specifications. Funds for this purchase are included in the 1989/90 budget. Award of Bid - Bid Schedule No. 2243, Three Phase Protective Relay Test Set (B-050-100) It is the recommendation of the Electric Director that Bid Schedule No. 2243, three phase protective relay test set, be awarded to the evaluated low bidder, Doble Engineering Company, in the amount of $32,224. Funds for this purchase are included in the 1989/90 budget. 1989-90 Convention & Visitors Bureau Marketing Plan (A-050-500) It is the recommendation of the Convention and Visitors Bureau Director to approve the 1989-90 Marketing Plan for the Convention and Visitors Bureau. Shasta Lake Video Magazine - Video Proposal by Dillonwood Production Services (T-040-350-700) It is the recommendation of the Convention and Visitors Bureau to approve participation in the video production on Shasta Lake produced by Dillonwood Production Services in the amount of $3,000 for the rights to present the video on Channel 8 and be listed in the video tape as a source of further information. If the video is shown on the national travel channel, it is recommended that an additional $2,000 be allocated for a thirty-second commercial in the video naming the City of Redding as a source for further information. Resolution - Emergency Repairs at Municipal Airport Terminal Building * (B-130-070 & A-090-100) It is the recommendation of the Airports Director that Resolution No. 89-326 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 2nd Amendment to the City Budget Resolution No. 89-286 appropriating $33,100 for emergency plumbing repairs to the terminal building. Resolution - Hangar Roof Repairs at Benton Airport * (B-130-070 & A-090-020) It is the recommendation of the Airports Director that Resolution No. 89-327 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 3rd Amendment to the City Budget Resolution No. 89-286 appropriating $11,000 for roof repairs to the Benton Hangar Complex. The budget will be reimbursed by the Caltrans annual grant account for Benton Field in the amount of $5,828, and then Caltrans will, through their Airport Loan Program, provide for an additional reimbursement of $5,100. Resolution - Request for Document Destruction 427 10/3/89 (A-050-055-750) It is the recommendation of the City Clerk that Resolution No. 89-328 be adopted, a resolution of the City Council of the City of Redding authorizing the destruction of certain records. Downtown Mall Association Budget - January 1, 1990 to December 31, 1990 (M-010-200-400) It is the recommendation of the City Clerk that the budget submitted by the Downtown Merchant's Association for the period January 1, 1990, to December 31, 1990, be approved. North Valley Art League - Request to use Cottage Gallery for Art Faire (C-050-130) It is the recommendation of the Director of Recreation and Parks to approve the request by the North Valley Art League to use the Cottage Gallery for the Arts and Crafts Faire on May 5 and 6, 1990. Peppertree Park - Playground Equipment (P-050-460-700) It is the recommendation of the Director of Recreation and Parks to approve the addition of children's playground equipment at Peppertree Park in the amount of $10,000 from Park Development Funds. Award of Bid - Bid Schedule No. 2246, Proscenium Fire Curtain at Redding Convention Center (B-050-100) It is the recommendation of the Convention Center that Bid Schedule No. 2246, proscenium fire curtain, be awarded to the low bidder, Stagecraft Industries, Inc., in the amount of $31,984.54. Funds for this purchase are included in the 1989/90 budget. Notice of Completion - Bid Schedule No. 2225, Removal of Sludge from Pond No. 1 - Redding Regional Wastewater Treatment Plant (B-050-020 & W-010-450) It is the recommendation of the Public Works Director that Bid Schedule No. 2225 (Job No. 9819-20), removal of sludge from Pond No. 1 at the Redding Regional Wastewater Treatment Plant, awarded to Cox and Cox Construction, be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $61,645. Notice of Completion - Bid Schedule No. 2165, 1988-89 Slurry Seal Program (B-050-020 & S-070-200) It is the recommendation of the Public Works Director that Bid Schedule No. 2165 (Job No. 5115-64), 1988-89 Slurry Seal Program, awarded to California Pavement Maintenance Company, Inc., be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $68,625.07. Award of Bid - Bid Schedule No. 2245, Anthracite Filter Media (B-050-100) It is the recommendation of the Public Works Director that Bid Schedule No. 2245, purchase of anthracite filter media, be awarded to the low bidder, Unifilt Corporation, in the amount of $9,169. Funds for this purchase are included in the 1989/90 budget. Resolution - United Stated Bureau of Reclamation Buckeye Water Contract (W-030-050 & F-200-200-050) It is the recommendation of the Public Works Director that Resolution No. 89-329 be adopted, a resolution of the City Council of the City of 428 10/3/89 Redding approving the Amendatory Agreement between the United States of America and the City of Redding providing for water service (Buckeye Water Contract), Contract No. 14-06-200-5272A Amendatory, and authorizing the Mayor to sign same. Sacramento River Trail Bridge - Contract Change Order - Bid Schedule No. 2136 (B-050-020 & P-050-460-700) It is the recommendation of the Public Works Director to authorize the City Manager to execute a contract change order to Charles Redfield's contract in the amount of $13,000 for activities related to the construction of the Sacramento River Trail Pedestrian Bridge. Acceptance of Final Map - Long Drive Estates Subdivision (North side of Woodacre Drive and east of Bechelli Lane) (S-100-440) It is the recommendation of the Public Works Director that the Final Map for Long Drive Estates Subdivision, developed by JCMC, be approved, the Mayor be authorized to sign the Subdivision Agreement, and the City Clerk file the map with the Shasta County Recorder. Resolution Accepting Streets and Acceptance of Improvements for Forest Homes, Unit 2 (South of Hartnell and west of Shasta View) * (S-070-230 & S-100-208) It is the recommendation of the Public Works Director that Resolution No. 89-330 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation all of Capricorn Way and Bridger Drive in the Forest Homes Subdivision, Unit 2. It is also recommended that the improvements for Forest Homes, Unit 2, be accepted as satisfactorily completed and the City Clerk be instructed to return the securities to the developer, Lynaco Development. Acceptance of Final Map - River Ridge Park, Unit 1 (South of Quartz Hill Road and east of Keswick Dam Road) (S-100-654-600) It is the recommendation of the Public Works Director that the Final Map for River Ridge Park, Unit 1, developed by Don D. Davis, be approved, the Mayor be authorized to sign the Subdivision Agreement, and the City Clerk file the map with the Shasta County Recorder. Acceptance of Final Map - River Heights Subdivision (South of Hilltop and west of Interstate 5) (S-100-648) It is the recommendation of the Public Works Director that the Final Map for River Heights Subdivision, developed by Knighton Construction & Development, Inc., be approved, the Mayor be authorized to sign the Subdivision Agreement, and the City Clerk be authorized to file the map with the Shasta County Recorder. Resolution Accepting Right of Way Dedication - Oak Mesa Subdivision, Unit 1 *(C-070-010 & S-070-230 & S-100-536) It is the recommendation of the Public Works Director that Resolution No. 89-331 be adopted, a resolution of the City Council of the City of Redding accepting Parcels 1 and 2 of the offer of dedication for public purposes, Tract 1570, recorded in Book 1698, Page 160, Official Records of Shasta County, for maintenance and operation (Oak Mesa Subdivision, Unit 1). Resolution Accepting Streets and Acceptance of Improvements for Oak Mesa Estates, Unit 1 (Both sides of Oak Mesa Lane, south of Old Alturas, and east of Churn Creek) 429 10/3/89 * (S-070-230 & S-100-536) It is the recommendation of the Public Works Director that Resolution No. 89-332 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation all of Oak Mesa Lane, Sophy Lane, Sageway Drive, and Candlewood Drive in the Oak Mesa Subdivision. It is also recommended that the improvements in the Oak Mesa Estates Subdivision, Unit 1, be accepted as satisfactorily completed, with the exception of placing an asphalt overlay on the offsite portion of Oak Mesa Lane, and the City Clerk be instructed to return the securities to the developer, Robert Quiertz, and retain the $20,000 performance bond guaranteeing the paving work to be done upon completion of Unit 2 or August 1, 1990, at the latest. MOTION: Made by Council Member Dahl, seconded by Council Member Buffum, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. Voting was as follows: Ayes: Council Members - Buffum, Dahl, Fulton, Johannessen, and Carter Noes: Council Members - None Absent: Council Members - None Resolution Numbers 89-325, 89-326, 89-327, 89-328, 89-329, 89-330, 89- 331, and 89-332, are on file in the office of the City Clerk. - - - - - WRITTEN COMMUNICATIONS Letter of Resignation from Karen Shadish - Board of Directors of the Redding Community Access Channel (B-080-120) A letter of resignation was received from Karen Shadish resigning from the Board of Directors of the Redding Community Access Channel effective October 1, 1989. MOTION: Made by Council Member Buffum, seconded by Council Member Dahl, to accept the resignation of Karen Shadish from the Board of Directors of the Community Access Channel effective October 1, 1989. The Vote: Unanimous Ayes PUBLIC HEARING - re General Plan Amendment Application GPA-10-89, by Ken Pierce (1587 and 1589 Canby Road) (G-030-010) The hour of 7:00 P.M., having arrived, Mayor Carter opened the public hearing regarding GPA-10-89. The following documents are on file in the office of the City Clerk: Affidavit of Mailing - Notice of Public Hearing Affidavit of Publication - Notice of Public Hearing Planning Commission recommendation dated September 28, 1989 Planning and Community Development Director Perry reported that the Planning Commission, by a four to two vote, recommended denial of a request to reclassify approximately 0.55 acres from "Residential, 4.0 units per acre" to "Residential, 6.0 units per acre." Mr. Perry conveyed that Mr. Pierce's intent is to create three 8,000-square-foot lots and build three 900 square-foot homes to be used as rentals. 430 10/3/89 There are presently two lots that share a common driveway with two single-family homes, one of which is owned by Mr. Pierce. It is the recommendation of staff that the application be denied. Council Member Johannessen stated that Mr. Pierce's property was divided by the overpass and is now substantially below the grade of the overpass. He noted that this property is not conducive to a better residential area. He asked if anything can be done for the property owner to make the property economically viable. Mr. Perry stated that the property is 24 feet below the overpass. He reiterated that the general plan allows two dwelling units, and Mr. Pierce is asking for three. He stated that the real question is if Council wants to encourage multiple family development by placing a multiple family designation on that side of the street. Mr. Perry recommended against the multiple family designation because Council will be making a statement to others in the area who may want to do the same thing. Council Member Buffum asked if a three unit subdivision would be cost effective? She noted that Council has used the multiple family designation as a buffer before. Mr. Perry indicated that Mr. Pierce has to determine the cost effectiveness of his project. He pointed out that many residential areas prefer office designations over multiple family designations. Council Member Fulton noted that there is a duplex on the property to the north, and therefore the complexion of the area is not really changing. Mr. Perry explained that the duplex was approved by the County prior to annexation by the City. In response to Council Member Buffum's question, Mr. Perry reviewed the type of structures on the west side of Canby Road. He noted that there were some homes and a church. Council Member Buffum asked what kind of development will occur in this area. Mr. Perry responded that the area will probably become offices, depending on the availability of office space in the rest of the City. Council Member Johannessen asked how Mr. Pierce can have a viable economic use of the property. He stated that by allowing a three unit subdivision, the property owner will benefit and the rest of the subdivision is not affected. He explained that it is at the end of a dead end street and facing the overpass. Council Member Dahl stated that Mr. Pierce would have a difficult time building two single family homes and selling them. He asked if Council referred this back to the Planning Commission for approval of a three lot, single-family subdivision, would staff's concerns be mitigated. Mr. Perry said yes, yet his experience shows that a precedent will be set. He indicated that the Planning Commission, as well as the Council, can make a finding that a three unit subdivision is consistent with the General Plan. Ken Pierce, 1595 Canby Road, stated that because of the proximity of the overpass, it is not feasible to place a single-family home on the property. He said it is his intention to create three 8,000 square foot lots and build three separate houses. There will be off site parking and the rentals will be geared toward retired people. Mr. Pierce outlined where the paved easement lies and how the houses would be situated on the property. He added that the application should not be denied because he wants to build rentals. He emphasized that the 431 10/3/89 overpass is directly in front of the property and a duplex is across the street. MOTION: Made by Council Member Fulton, seconded by Council Member Johannessen, to continue the public hearing regarding General Plan Amendment Application GPA-10-89, by Ken Pierce, to October 17, 1989, and refer the application back to the Planning Commission to be considered as a three-unit, single-family subdivision. The Vote: Unanimous Ayes PLANNING COMMISSION APPOINTMENT B-080-300) Mayor Carter recommended that Vernon McCollum be appointed to the Planning Commission. Mayor Carter noted that Mr. McCollum is a mortgage banker and broker. MOTION: Made by Council Member Johannessen, seconded by Council Member Buffum, to appoint Vernon McCollum to the Planning Commission for a term expiring May 1, 1993. The Vote: Unanimous Ayes ORDINANCE NO. 1908 - Amendment to Public Employees' Retirement System Contract for Miscellaneous Employees (P-100-230) MOTION: Made by Council Member Fulton, seconded by Council Member Dahl, that the full reading of Ordinance No. 1908 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Johannessen, seconded by Council Member Dahl, that Ordinance No. 1908 be adopted, an ordinance of the City Council of the City of Redding authorizing an amendment to the contract between the City Council of the City of Redding and the Board of Administration of the California Public Employees' Retirement System. Voting was as follows: Ayes: Council Members - Buffum, Dahl, Fulton, Johannessen, and Carter Noes: Council Members - None Absent: Council Members - None Ordinance No. 1908 is on file in the office of the City Clerk. PLANNED DEVELOPMENT PD-3-84 - Amendment Request by The Knolls, by Frank Wilson (L-010-210-390) Planning and Community Development Director Perry reported that the Planning Commission approved a request by Frank Wilson to amend Planned Development PD-3-84, The Knolls, to adjust the boundary of the project and to grant a one-year time extension for Phase 3 of Unit 1. This was an information item, and no action was required. RIVERLAND RECREATION AREA - Environmental Impact Report EIR-2-88 (L-010-075 & P-050-460-700) Planning and Community Development Director Perry submitted the Minutes of the Redding Planning Commission from the meeting of September 26, 1989, when EIR 2-88 for the Riverland Recreation Area was certified as adequately addressing the impact of the project. No action was required at this time. 432 10/3/89 SURPLUS CITY PROPERTY - Sale of Property at Creekside Street and Girvan Road (C-070-200) Planning and Community Development Director Perry reported that three bids were received in response to the notice of sale of surplus property on Creekside Street and Girvan Road. Mr. Perry conveyed that the high bid was submitted by David and Terrie McVey for $47,777 cash with a 30 day close of escrow and escrow fees split 50/50. Mr. Perry stated that if Council concurs to accept the offer of David and Terrie McVey to purchase the property, the City Attorney's office will notify the McVeys, open an escrow account with TICOR Title Company, initiate the engineering work necessary to reserve a 20-foot strip adjacent to the ditch for maintenance, and begin capping the well. MOTION: Made by Council Member Dahl, seconded by Council Member Buffum, to accept the offer of David and Terrie McVey to purchase property at the northeast corner of Creekside Street and Girvan Road for $47,777.00 and consistent with the terms of their submitted offer. The Vote: Unanimous Ayes REGIONAL FIRING RANGE - Environmental Impact Report (C-070-010-050) Planning and Community Development Director Perry stated that the Shasta County Planning Commission conducted a workshop at the request of City and County Planning staff to determine what the EIR on the proposed regional Firing Range should cover and who should prepare it. It was the consensus of the Commission that the County should be the lead agency and contract out for the EIR. Mr. Perry conveyed that City and County staff would develop a scope of work for the EIR, the County would issue the Request for Proposal (RFP) and award the contract for the EIR, and the City would transfer funds to the County, who would then make payments to the consultant. Mr. Perry noted that the City has expended $5,000 for a noise study leaving $10,000 in the project account which was budgeted for the EIR. He conveyed that the County's approach will probably increase the total cost of the EIR; however, the County believes this approach will lend credibility to the EIR process, and it is also their adopted procedure for projects requiring EIRs. He added that this process may also take longer. It is the recommendation of staff to wait until the County gets responses to the RFP and then decide whether or not to proceed in this direction. Council Member Johannessen noted that staff's point is well taken, if the County or property owner prepares the EIR, the report will have more credibility. Mayor Carter said he is concerned about the project moving along expeditiously. In response to Council Member Fulton's question, Mr. Christofferson stated that two more offers were received from the property owner. He conveyed that staff will be forwarding that information, along with other material, to Council in the morning. Council Member Buffum noted that it is not necessary for the City to go through the use permit procedure. She noted that the County is currently involved in a lawsuit with the property owner and it may be wise to withdraw the use permit request. 433 10/3/89 Mr. Christofferson conveyed that this is one of the topics staff will be discussing with Council. No formal action was taken at this time. RESOLUTION - Proclaiming the Week of October 8 - 14 as Public Power Week 1989 (A-050-060-600 & E-090) Electric Utility Director Lindley stated that this is the third year that the American Public Power Association is coordinating Public Power Week to provide a nationwide promotion and customer awareness of consumer-owned electric utilities. Mr. Lindley conveyed that public power needs and deserves community and nationwide support, and it is important to inform the public of the benefits of public power. He indicated that a number of public relations activities will be involved. It is the recommendation of staff to designate October 8 - 14 as Public Power Week. Mayor Carter said he is proud to be a member of a community that has public power. He noted that it is important to plan ahead for the future to ensure adequate power. Council Member Dahl asked how the City's rates compare to that of PG&E. Mr. Lindley indicated that the City's rates are 40% to 50% less than in the unincorporated area. MOTION: Made by Council Member Fulton, seconded by Council Member Johannessen, that Resolution No. 89-333 be adopted, a resolution of the City Council of the City of Redding proclaiming October 8 - 14, 1989, as "Public Power Week." Voting was as follows: Ayes: Council Members - Buffum, Dahl, Fulton, Johannessen, and Carter Noes: Council Members - None Absent: Council Members - None Resolution No. 89-333 is on file in the office of the City Clerk. ELECTRIC DEPARTMENT PROJECT STATUS REPORT - Fourth Quarter 1989 (A-050-125) Electric Director Lindley submitted the Electric Department Project Status Report for the Fourth Quarter of 1989. This was an information item and no action was required. RESOLUTION - Electric Utility Rate Adjustment (E-090-100) Electric Utility Director Lindley reported that the Electric Utility Commission reviewed the need for an Electric Utility rate adjustment during the current fiscal year. Mr. Lindley indicated that a rate adjustment of 6.53% is recommended based on the increased cost of power purchased from the Western Area Power Administration (effective October 1, 1989), PG&E's proposed rate adjustment effective January 1, 1990, and the increasing amount of power being purchased from PG&E. Mr. Lindley stated that a 6% rate increase is also forecasted for the following two years. Mr. Lindley stated that staff has the option whether or not to contest PG&E filing a rate increase. He explained that staff is trying to evaluate its position and may return with a recommendation to contest the filing. 434 10/3/89 Mayor Carter noted that the City will be purchasing triple the amount of power from PG&E in the future. He said this underscores our need to find alternative power sources. Council Member Johannessen emphasized that it is very important to develop alternative energy resources for the future. He noted that having an electric utility is attractive to a university campus as well as high tech industry. He added that Council should act in a unified manner when dealing with power sources. Mayor Carter asked when the California Oregon Transmission Project (COTP) will come on line. He noted that the project is cost effective and politically acceptable. Mr. Lindley stated that the COTP will come on line in 1995. Council Member Dahl stated that Council is very committed to finding alternative energy sources. He mentioned the COTP and Spring Creek projects and pointed out that it is also necessary to recognize when a project is no longer economical or viable. Council Member Dahl noted that there is nothing Council looks forward to less than a rate increase; however, he pointed out that when the cost of goods and services go up, prices must be raised. He commented that City of Redding rates are significantly lower than PG%E rates. He asked what would happen if Council voted not to increase rates. Mr. Lindley indicated that the electric utility would depend on the general fund within two or three years. He explained that the electric utility is an enterprise operation, and the benefits as well as the costs go to the customer. He added that if the rate increase is not approved this year, an 18% increase may be necessary next year. Council Member Johannessen stressed that even with the resources currently being developed, the population growth of Redding will outpace resources. Mr. Lindley stated that current resource development will take Redding through the next ten years. He noted that we are obligated to move forward and develop all alternatives available now. Council Member Buffum noted that it is important to develop alternative energy resources. She added that it is good management and planning to provide for the future and if a reasonable rate is not implemented now, future rates will be impacted even worse. MOTION: Made by Council Member Fulton, seconded by Council Member Dahl, that Resolution No. 89-334 be adopted, a resolution of the City Council of the City of Redding establishing electrical utility rates for service to customers within the corporate limits of the City of Redding. Voting was as follows: Ayes: Council Members - Buffum, Dahl, Fulton, Johannessen, and Carter Noes: Council Members - None Absent: Council Members - None Resolution No. 89-334 is on file in the office of the City Clerk. PUBLIC WORKS QUARTERLY REPORT - Fourth Quarter 1989 (A-050-300) Acting Director of Public Works Aasen presented the Public Works Quarterly Report for the Fourth Quarter of 1989. This was an information item and no action was required. 435 10/3/89 URGENCY ITEM (S-050-100 & T-080-700) MOTION: Made by Council Member Johannessen, seconded by Council Member Buffum, to consider the Cooperative Agreement with Caltrans regarding the traffic signal installation at State Route 273 and Quartz Hill Road as an urgency item. The Vote: Unanimous Ayes RESOLUTION - Cooperative Agreement with Caltrans - Traffic Signal Installation at State Route 273 and Quartz Hill Road (S-050-100 & T-080-700) Acting Director of Public Works Aasen stated that a new traffic signal with street improvements at the intersection of State Route 273 and Quartz Hill Road is budgeted for 1989-90. All of the total cost except $16,550 will be paid by Caltrans under a cooperative agreement; however, Mr. Aasen explained that the funding for this project has yet to be approved by the California Transportation Commission. He conveyed that Caltrans urged staff to seek Council's adoption of the Cooperative Agreement and submit it to the Commission prior to October 10, 1989, for their approval. Council Member Fulton asked when the traffic signal would be constructed. Transportation Coordinator Duryee stated that construction could begin by June of 1990. MOTION: Made by Council Member Dahl, seconded by Council Member Fulton, that Resolution No. 89-335 be adopted, a resolution of the City Council of the City of Redding approving Cooperative Agreement No. 02B973 by and between the City of Redding and the State of California, Department of Transportation, for installing a traffic control signal and safety lighting and performing roadwork at the intersection of Quartz Hill Road and Rio Drive with State Highway 273; authorizing the Mayor to sign said agreement, and authorizing the Public Works Director to approve amendments to this agreement regarding the final costs and the distribution of funds. Voting was as follows: Ayes: Council Members - Buffum, Dahl, Fulton, Johannessen, and Carter Noes: Council Members - None Absent: Council Members - None Resolution No. 89-335 is on file in the office of the City Clerk. ADJOURNMENT There being no further business, at the hour of 8:42 p.m., Mayor Carter declared the meeting adjourned to 5:15 p.m., Tuesday, October 10, 1989, at the City Hall Conference Room, 760 Parkview Avenue, for a joint meeting with the Recreation and Parks Commission. APPROVED: __________________________________ Mayor ATTEST: ___________________________________ City Clerk 436 10/3/89