Loading...
HomeMy WebLinkAboutMinutes - City Council - unsigned - 1990-12-011 12/01/90 City Council, Adjourned Regular Meeting Council Chambers Redding, California December 1, 1990 8:45 a.m. Mayor Buffum called to order the Adjourned Regular Meeting of the Redding City Council with the following Council Members present: Arness, Dahl, Fulton, Moss and Buffum. Staff members present were City Manager Christofferson, Assistant City Manager McMurry, City Attorney Hays, Director of Planning and Community Development Perry, Director of Public Works Galusha, Chief of Police Blankenship, Director of Finance Downing, Director of Recreation and Parks Riley, Director of Information Systems Kelley, Assistant Director of Finance Sundin-Gruber, Public Information Officer Bachman, and City Clerk Nichols. Also present were Les Melburg, Gene Nichols, Lee Salter, Larry Hopson, Bill Evanhoe, Gary Arel, Kent Dagg, Gary Anthis, and Electric Utility Commissioners Gelonek, Gandy, Potter, and Toney. CIVIC CENTER SITE (C-050-025) Director of Planning and Community Development Perry presented a chronology of events of the siting of a new City Hall as follows. Mr. Perry reviewed the charges given to the Commissions at the June 14, 1990, meeting for their deliberation in considering the two sites--Benton Ranch vs. Parkview. Mr. Perry gave a graphic comparison of the two sites indicating building sizes and possible placement of buildings at each location. He reviewed the building and parking needs to the year 2010 as determined by architectural consultants Nichols, Melburg, and Rossetto which are: Administration building (without the Electric Department) 110,000 square feet and 570 parking spaces, 372 employees requiring 6 to 7.5 acres; and the Police building 49,000 square feet, 282 parking spaces, 122 employees, requiring 3 to 4.5 acres. Mr. Perry outlined the historical ownership and proposed uses for the Benton Ranch land which included office development, a residential subdivision, and an elementary school site. The land, as acquired by the Redevelopment Agency by trade with the McConnell Foundation, is undeveloped. Mr. Perry conveyed that the original plans for a Civic Center on Parkview Avenue included Federal, State, County, and school buildings. State ownership of property on the Parkview site places a constraint on the buildable area immediately available; however, Caltrans may relocate its facilities by 1995. Before construction could commence at the Parkview site, the City Corporation and softball park will have to be relocated. Mr. Perry described 100 usable acres at Benton Ranch which excludes archaeological sites, the 100-year flood plain, Sacramento River trail, and steep slope and which would allow development of museums, expansion of convention facilities, and placement of City administration buildings west of Sulphur Creek. Utilities could be easily served to the area. He referenced the possible acquisition of the drive-in theater and the mobile home park properties. Mr. Perry described the 35-acre Parkview site and indicated that it is well served by utilities. Mr. Perry opined that construction of a City Hall at either site will not require the building of a bridge. He noted, however, that a Parkview Avenue bridge is already planned as a shunt to avoid the Cypress Bridge traffic. He indicated that, as the City is growing in all directions, either site is central. Deed restrictions on Benton Ranch were reviewed, and he conveyed that 20% of the property must be used for park purposes, and the balance may be used for municipal purposes. It cannot be sold except to another public agency. Council Member Dahl said there is a consensus that both bridges are needed. Mr. Perry advised there are two funding sources for the Parkview bridge-- Traffic Impact Fees and Redevelopment monies. 2 12/01/90 Director of Public Works Galusha advised that the Bonnyview Bridge is at the top of the priority list of City needs. He said hopes have dimmed for State funding for the Benton bridge at the present time. Council Member Moss commented that the Bonnyview bridge should not be a part of this deliberation and pointed out that funds might be available for the Benton three-in-one bridge such as sewer utility funds (bridge for sewer line expansion) and park grant funds (proposed pedestrian bridge). Council Member Arness referenced the building footprint requirements that are common at both locations and pointed out that there is more space to spread out at Benton Ranch in the future. Mr. Perry predicted that expansion will be necessary within twenty years, and he recommended planning for at least 40 years and longer. He said a multi- level parking structure is a possibility, but available funds will be the determining factor. Mr. Perry addressed the What, When, Where, and How of the siting issues. He said the What pertains to the style of the buildings; that is, vertical versus a horizontal design and other related factors. The Where is what Council is talking about today, and the When is when it can be done. The Parkview site requires removal of the Corporation Yard to another facility that has yet to be built. The How of financing will be discussed later in the meeting. In response to Council Member Moss' question about the building footprint on the Parkview site if Tiger Field and South City Park are to be preserved, Mr. Perry suggested a 38,000 square-foot footprint for a three-story building, providing 114,000 square feet of space and 570 parking spaces. This represents 252 surface spaces in one location and an additional 266 spaces after the existing cottages are demolished. He further suggested a 25,000 square-foot footprint for the 49,000 square-foot Police building plus 282 parking spaces. He recommended landscaping at least 25% of the area. Council Member Moss commented that while the 110,000 square-foot building is projected to meet the needs for twenty years, the charge to the Commissions was to find the site that would allow a 50% increase for additional growth for another 25 years. Mr. Perry opined that the way the City is growing, 220,000 square feet of office space will be needed in another forty years. He demonstrated that the two buildings would fit easily on the Benton Ranch property along North Market Street and west of Sulphur Creek and would provide for ample parking. This would occupy about eleven acres, about the same amount of land desired by the Elementary School District for a school of 600 children with playground and parking. Mr. Perry noted that the Redding Elementary School District had previously forgone an opportunity to purchase ten acres of land set aside by the Redding Redevelopment Agency (RRA) and City Council for a school site in Lake Redding Estates area. He said the City and RRA are obligated to give serious consideration to any request by the School District for school site dedication on Benton Ranch, but the District must pay for it. Council Member Dahl commented that this would provide a return on City surplus property which would be an avoided cost. Mayor Buffum complimented Mr. Perry for his admirable presentation. Council Member Arness reaffirmed his position that Tiger Field should not be removed because it is a park. He admonished that the new facility should reflect community pride with a sense of excitement, entertainment of form, and reflect local weather conditions. Council Member Moss stated that this is a complex and emotional issue. He said it was unfortunate that the study by the Commissions was distorted by consideration of placing City Hall in the Downtown Mall and was a dominating force for three months. He expressed his opinion that the letter from the McConnell Foundation had an overriding affect on everyone involved in the deliberations, and he suggested that the Commissions read a lot into the letter that may not have been intended. He acknowledged that the Foundation has a right to be generous to the City and to influence its direction. However, Council Member Moss emphasized that Benton Ranch was not a gift to the City. It is a welcome addition to City real estate holdings that 3 12/01/90 represents a $1.9 million investment of Redevelopment funds in the property. That translates to $19,000 per usable acre which is considerable more than it would be worth on the market as development property. The City paid the fair market value for the Benton Ranch. He said the City has a right to use it to best serve the public interest. He stated that he has long been a champion of preserving the Sacramento River which he considers to be the most important natural asset in the City. He would like the river to be used as the central theme of Redding. Mr. Moss said he would like to look at Benton Ranch and Turtle Bay as one planning unit and expand it to all City holdings on the River. He would like to see a City Hall complex located west of Sulphur Creek. This would have little impact on Benton Ranch east of Sulphur Creek where part of the museum complex should be located. He believes that the entire museum park should not be crowded onto Turtle Bay. He noted that the McConnell Foundation requested that any large structures be placed on the west side. Mr. Moss said the purchase of the drive-in theater and mobile home park would provide ample room for growth and for all needed facilities to be developed in the triangle west of Sulphur Creek. He said the bridge could come in at that point. Because infrastructure is in the area, he believes the cost of the building at Benton would be less than at Parkview. He challenged the thinking that a new City Hall will revitalize the Parkview area. He said it would be more significant to revitalize the Downtown and Miracle Mile areas which are already commercial. Council Member Moss emphasized that the same facility can be built cheaper at Benton Ranch than at Parkview. In doing so, the need to destroy publicly paid for and intensively used facilities at Tiger Field, the Softball Park, South City Park, and tennis courts would be eliminated. He expressed that placing City Hall and the Police Department at Parkview would require shoe horning in the buildings. He stressed that the buildings should be placed where they will be worth the most when completed. Council Member Moss said Redding's present population of 65,000 will increase to 200,000 in our lifetime. Redding will be the regional center of the North State and City Hall should symbolize a City that has confidence and pride. He urged Council to place City Hall and the Police building at Benton Ranch. He reiterated that it cannot be placed at Parkview without destroying existing recreational facilities, and it would avoid disruptions of government during construction. Council Member Fulton said, as background, before the new Council Members came on in April, the sites had been thoroughly explored. Benton Ranch came into the picture with stipulations from the people who gave the property to the Redevelopment Agency to use it primarily for open space and public use. Those wishes cannot be ignored. Public hearings were held and the majority of the people there did not favor Benton Ranch. He stated that the Parkview property is in the City's name, the infrastructure is there, and by using the east end of the property, Tiger Field will be left intact. He still strongly believes there is adequate room for a well designed building at Parkview. Council Member Arness complimented Council Member Moss for projecting the City's needs so well into the future. He stated that shoe horning buildings in at Parkview would be reflected in the project costs; that water, sewer lines, and storm drain costs would be the same at either site and street needs would be minimal. Consideration should be given to the possibility of buying the trailer park and the theater at Benton versus the possibilities of buying out or waiting out Caltrans at Parkview and then demolishing asphalt and building. He would like the facility landscaped to make it desirable for receptions, etc., and he pictured City Hall as being a very focal, long range facility for the City. He added that when buildings have to be torn down and built in a confined space, additional costs are added. He said Council Member Moss' comments were on target and the Benton Ranch site offers an opportunity for a long-term, first-class facility for a growing community. Council Member Dahl commented that no other issue has taken more time and debate or had more media exposure than the siting of City Hall. He declared it is time to make a business-like decision. Council must be prudent and conservative and display fiscal responsibility. In view of the current economic uncertainty of the State and Nation, debt must be viewed with extreme caution. Council should again invite the County to join in sharing some economy of scale. He said the Parkview site has already been selected twice by the Council and the latest debate has not brought forth any new issues to 4 12/01/90 change his views. He reaffirmed his choice of Parkview as the site for the Civic Center and offered a motion to that affect. He said it can be accomplished as it was originally voted on without relocating Tiger Field. 5 12/01/90 Council Member Dahl urged preservation of Benton Ranch as open space, park and cultural development, rather than governmental administrative buildings. He said the priceless lands must be preserved as park lands, not parking lots. There is a fear that a Civic Center on Benton Ranch would begin a pattern of encroachment which over the years would jeopardize the goal of preservation. That would be compounded by the siting of a school which a previous Council committed to. True vision is preserving it for future generations and it makes good business sense. The McConnell Foundation letter reflects the view of the original Council decision, and he concurred with the letter although it did not change his position. He sees no reason to study putting City Hall in a drive-in theater since Council just considered putting it in a shopping mall. He said, in the long term, when Caltrans moves, there will be ample room at Parkview. There will then be plenty of room at Benton Ranch for all kinds of expansion. He urged Council to reaffirm the decision to site the Civic Center at Parkview. Mayor Buffum, calling herself the swing vote, proceeded to justify Council's actions on this matter. She recalled that she served on the site selection committee for the Chamber of Commerce, and she agonized as a Council person one year ago. Council has listened and taken the extra time to make this decision. The two new members were allowed to get up to speed, Council listened to the Commissions, and they listened to the Mall issue. Council has done everything they could and should do. The community has become better educated and involved. She said a lot of things have changed since the issue first arose. The City has 25,000 more people, it now owns Benton Ranch, and the Alliance of Redding Museums must be considered. These are critical new additions to the problems, and solutions are now available. Mayor Buffum stated that the most important job is master planning the City for the next 200 years. Council must avoid the mistakes of San Jose when their growth boom crested, and they are now trying to reclaim space for public parks and public facilities that were never saved for. This Council is trying to provide substance, some reasons for the decisions it is making today. She noted that under discussion is ten acres that will make a City Center. It is not a lot of land, but it is key if other parts of the City that have not been planned are thrown away. The Parkview area is ready for rehabilitation and revitalization. This Council must maintain its stewardship for the future, and it is a business decision, as well. Some things have been done to provide breathing room on Parkview; for example, moving the Corporation Yard to Viking Way and developing a Softball Complex. She said we must handle City Hall in a logical sequence. Some of the best revitalization has been to clear the land and rehabilitate it. She reflected that Redding is in one of the most beautiful places in the world. Mayor Buffum suggested that City Hall be built "up" four or five stories and the green belt saved. She urged going up in the downtown core area to avoid urban sprawl and she encouraged stacked parking instead of putting acres under surface parking. She noted that the amenities put into the community are more important than how we are comfortable in managing it. She believes in the people and doing the work of the business of the people. The community and its way of life must be protected. Benton Ranch should be saved as a park with open space, arboretums, museums, or other public facilities. She reaffirmed the Parkview location and pointed out that it would not require sloped buildings. One option is to close Akard Avenue and build City Hall in the middle of where the road is, leave Tiger Field and the tennis courts, and begin to develop the .38 acre parcel that the California Department of Forestry is on. Closing Akard Avenue would not impact traffic because another street goes through from south Redding to Cypress Avenue. This can be a proper City Hall that will anchor the City and keep the City's core, which is bordered by the River, together. She noted that a new City Hall may or may not revitalize south Redding. No improvements, other than recreational, have been made there in 40 to 50 years. The fairest, most intelligent business approach would be to put the business of the City second to doing the people's work and providing for the future. MOTION: Made by Council Member Dahl, seconded by Council Member Fulton, to place City Hall on the Parkview Avenue site. Voting was as follows: Ayes: Council Members - Dahl, Fulton, and Buffum Noes: Council Members - Arness and Moss Absent: Council Members - None 6 12/01/90 Staff requested clarification of the motion and it was restated as follows: 7 12/01/90 MOTION: Made by Council Member Dahl, seconded by Council Member Fulton, that Parkview be reaffirmed as the Civic Center Site, and the possibility of placing City Hall on Akard Street be explored, and Tiger Field and the tennis courts be preserved by placing buildings on the east end of the property. The Vote: Unanimous Ayes ALLIANCE OF REDDING MUSEUMS (C-050-450) Mayor Buffum announced that the Alliance of Redding Museums submitted a request dated November 29, 1990, that Council formally set aside properties in Turtle Bay for the Redding Museum Park. She requested that since this item was not on the posted agenda, that it be considered at the meeting of December 4, 1990, as an urgency item. LONG-TERM FINANCING PLAN (B-130-070) Mayor Buffum announced that prior to the Finance Director's presentation, as a courtesy to a Commissioner, Mr. Ward Gandy would be given an opportunity for brief comments as follows, in full, concerning a memo written by the City Manager on November 15th regarding the financing of the Corporation Yard and City Hall. "Re: Financing of Corporation Yard and City Hall Dear Mayor Buffum and City Council: My question to the Council is why is the financing of these projects needed immediately? And why are the two projects being financed together when so many questions remain unanswered on both projects? Please allow me to give you my observations of these two questions. The reason you are financing them immediately and together is that the City management is out of money to complete the studies you need to make logical decisions on both projects. These two projects are not on the same time line. The City Hall is certainly further behind the Corporation Yard in the planning process. Because of inadequate budgeting of the last two years, you need these funds now to complete the studies that you have no money to do! I do not disagree with Mr. Christofferson's claim that the General Fund Revenue has increased by $10 million the last two years. But I ask - Why hasn't this 50% increase in General Fund Revenue been more wisely budgeted these last two years? There has been no money set aside the last two years for a "rainy day" or an economic downturn contingency nor has enough money been budgeted to complete essential studies required to give you correct information on these two projects. Again, the reason you are being asked to finance these two projects now is that you are out of money! Due to the inadequate budgeting of the last two years, you have been on a spending frenzy, you have no money set aside for contingencies. The management of the city now needs a "pot of gold" to continue. The immediate financing of City Hall and the Corporate Yard is the method they have used to get the money immediately and circumvent any public debate or participation in the process of need, cost or source of repayment. In Mr. Christofferson's original memo concerning the financing of these two projects, he rightfully cautions you to use extreme budget constraints in the future so that the financing commitments can be met. However, under this stewardship, you have not exercised any of these disciplines in the last two years. I am worried the rampant spending will continue if you allow this financing to occur now. The purpose of my bringing this to your attention is that after following the General Government portion of the City the last few months, I now understand what is happening. I hope others that are more familiar with the General Government operation of the City and 8 12/01/90 have a better knowledge of it than me, will now step forward and express their concerns to you, our elected representatives. The City Wagon is being pulled by a runaway financial team. I beg you to grab the reins and get it under control. If you do not, the team will break away and cross the horizon into a new valley. The taxpayers, ratepayers and voters of this City will be left with the bills to be paid. They will rightfully look to you, the City Council, as accountable for the actions of this administration. Thank you for your time and consideration." City Manager Christofferson suggested that Mr. Gandy had reached some erroneous conclusions based on misinformation. He responded to the allegations as follows: the financing that Mr. Gandy believes is being requested now, is not being requested now. It cannot be requested for at least six to nine months because the project has to take shape; and until a few minutes ago, the site was not even pinned down. Plans and specifications must be developed. It must be determined where we are going in terms of project costs and then financing can be discussed. Council has not decided to merge the two projects at all; and that has not been proposed, except as one of a number of options. Mr. Gandy also errors with regard to needing more monies for studies because architectural fees are provided for in the budget. Council allocated this advanced rent system in the budget, as far as both the Corporation Yard and the City Center are concerned, so there is no shortage of funding to take care of studies. Council Member Dahl said he would like a formal response from the City Manager. He noted that the remarks were directed at the City Council, as well as staff. Mr. Christofferson reported that so far, studies have been on a pay-as-you-go basis. The assumption has been for several years that not only the Civic Center and the Corporation Yard, but the Softball Complex as well, would be financed on a pay-as-you-go basis. Financing was mentioned as one way of getting the job done more quickly, and the possibility of folding in the Enterprise Park, if Council wished to, was mentioned. There certainly has been no policy decision made. Council Member Dahl again requested a written response from the City Manager because some members of the public misunderstand the issues. There is a belief that $50 million in improvements has already been financed and debt has been incurred; and so far, the discussion has not even come to Council. The site was only picked a half-hour ago, so it is just misinformation, there is nothing vindictive here. Mr. Christofferson noted that a telephone call could have put the issues in a proper perspective. It is important that people get the right information. Council Member Arness opined that he read Mr. Gandy's comments as a suggestion that the total general fund needs of the City should be looked at under the microscope. With the term fiscal conservatism being used over the past few months, he opined that Mr. Gandy, with his training in economics and accounting, is telling Council to look under all the bushes and test all of the waters when the ability to fund programs is evaluated. Between Council Member Dahl's comment about the public perception of the City financing $50 million and the rhetoric about calling the proposed City Hall a Taj Mahal, he perceives the public picturing the City building a grand gold-plated palace. Mr. Gandy wants Council to illustratively show what there is, or what there will be, and what will take general fund money. He commended Mr. Gandy for appearing and said the admonition is to be conservative, and hopefully, Council will be able to illustrate to the public what is fact and what is fiction. Mayor Buffum commented that past City Councils have not requested three- or five-year spending plans, and they were not faced with ten or twelve major projects. The decisions now are being made so fast, so furious, and are so important and huge, that we must determine our ability to understand the projects and also to pay for them, which is the issue that Mr. Gandy brought to Council. Council must determine what is accurate and what is not, and what is perception and what is not. This Council is fairly well notified that it has a job of not only to create and build a City, but also to be very 9 12/01/90 accountable of how it is paid for and how it is staged. She thanked Mr. Gandy. She said whether all of what Mr. Gandy has said is correct or not, Council has certainly been notified to look at it, clean it up, and take a good hard look at how it does things. She acknowledged that in the past, and certainly not under City Manager Christofferson's or Assistant City Manager McMurry's administration, monies were borrowed from the Electric Department and never accounted for-but these two men have not done that. She stressed that Council has a lot of work to do and a lot of ground to clean-up, but that does not mean things have been done wrong. It means that the job before Council is much more complicated in a tighter economy with less dollars. Council Member Fulton said he too would like to see a written response. Council Member Moss commented that he was quite comfortable with what went on at the budget session. The $99 million budget from the previous year was expanded to $106 million this year in the face of growth of about 7½% which must be served. Inflation rate in the same period of time was 4½%. He said it would have been easy to have justified an additional $2-3 million just in terms of growth and inflation, but it was not done. He said a lot of positions were cut--positions that were needed and positions that were certainly supported. However, when someone of Mr. Gandy's standing, education, background, and involvement in the community has these kinds of perceptions, then something is wrong and the public is not getting the information that it should. Council has talked in visionary terms. The Sports Complex, City Hall, and Corporation Yard are all facilities that are badly needed. The museum project, in a lot of people's minds, has been thrown into the same hopper; whereas, Council is aware that most of those funds are going to have to come from basically private sources. The public has a perception that too much is being taken on, and it must be explained that a lot of financing is from outside sources. This is a warning about what the community's perception is, and it should be addressed. Council Member Dahl's call for an explanation is exactly what is needed. Mr. Christofferson said a lot of the questions will be answered by the Finance Director's presentation that follows and some will be answered in the January timeframe. He said he would be delighted to prepare a written response in accordance with Council Member Dahl's suggestion. Director of Finance Downing gave a presentation illustrating environmental and external factors affecting the financial condition of the City, such as intergovernmental constraints, natural disasters and emergencies, and political and cultural factors. These factors create a demand on the City for services, as well as projects, and it is where the revenues are coming from. Mrs. Downing noted that it must be determined how to respond to the demands and how to allocate limited resources. All financial factors, including revenues, expenditures, operating position, debt structure, unfunded liabilities, and condition of capital plant must be taken into consideration. Charts, incorporated herein by reference, were shown which indicated General Fund Revenues and Expenditures for 1980 through 1990 and a five-year financial plan 1990/91 to 1995/96. Mrs. Downing advised that to comply with State Law, the Gann limit must be computed. The report indicates that the City is nowhere near the Gann spending limit. City budget restrictions are the resources available. Mrs. Downing advised that a 3% reserve is always maintained. The Budget allows for debt service from the General Fund for the cost of the Civic Center and the Corporation Yard. This is the first year money was set aside for that purpose. The plan is to set aside $772,500 in the 1991/92 budget, $1,525,000 in 1992/93, and 100%, or $3,050,000, in 1993/94. That is when it is expected debt service payments will be made. She added that this is an estimate of where the City is going on the construction project. Council Member Dahl inquired about the estimated 25% amount set aside in the General Fund Budget for debt service. Mrs. Downing responded that the estimate was based on lower projected construction costs and interest rates; and it is now known that the costs and rates will be higher, and the set aside was only 8% of General Fund. The percentage was off, but the dollars were correct. The set-aside monies are presently restricted in a building fund and restricted to the Corporation Yard and Civic Center. They are invested in an 10 12/01/90 LIP pooled money fund, and the average earned interest is applied to all the funds. Mr. Christofferson explained that the set-aside is a unique tool developed to lessen the impact on the General Fund when debt service payments become a reality. He noted that debt service for the proposed Police Administration building is not included. He advised that a 3% budget reserve is used as a goal, and this has not been done for many years. These two actions place the City in a very conservative position. He added that the project costs are a rough estimate. Mr. Christofferson said that monies are also being set aside from the sale of surplus property, and these funds will be available for a down payment. Director of Finance Downing stated that the source of the monies is being tracked to indicate whether they are General Fund monies or Utilities' monies. She reported that funds are now being set aside for the Police Building. Mayor Buffum inquired as to what is included in the 3% reserve. Mrs. Downing responded that after General Fund resources are determined, 3% is held out in reserves. Additional detail will be provided in January regarding other funds. Mrs. Downing discussed the possibilities of a Strong Scenario, a Weak Scenario, and focused on a Likely Scenario as follows: The Likely Economy Scenario is constructed based on a five-year anticipated financial period of below average growth for one year, followed by a one-year recovery growth period, one year of average growth, one year of above average growth, and one year of average growth. The Likely Economy Scenario projects a resource growth of $16.7 million in the General Fund over the next five years. The revenue calculations in the Likely Economy Scenario indicate expenditures in Plan Year 1 would decrease by $300,000. This would reduce operating expenditures by $1.16 million to incorporate the Civic Center and Corporation Yard debt service costs and establish a 3% reserve. Plan years 2 through 5 would allow for an expenditure increase of $16.6 million, enabling moderate program expansion or enhancement to be accomplished. Mrs. Downing said that the report was developed using present growth patterns, basic resource growth, anticipation of greater service needs, and added personnel. Council Member Moss pointed out that the estimated population growth rate of 4% is very conservative as far as looking for new dollars that will be spent; but, on the other side of the coin, it does not project what will be needed in facilities. That is why the City is $100 million behind in unfunded traffic needs. Mrs. Downing responded that when a trend analysis is used, it averages everything out and it may not provide a true picture. Council Member Moss said the best of all worlds is to underestimate income as long as figures like this do not affect our thinking about services that will be needed. City Manager Christofferson stated that the information provided is based on reasonable assumptions, and he encouraged Council to test the assumptions. Mrs. Downing said Council needs to advise staff if it wants to use different levels of percentages. Mayor Buffum stated the City has become a heavy retail-based center, so sales tax will have one rate of growth and property tax will not show the same rate. She suggested taking the major funding sources and chart them independently and then pull them back together. 11 12/01/90 Council Member Dahl said if growth and revenue exceeds projections, that can be dealt with. He commented that sales tax revenue accounts for about 30% of the General Fund and that stays constant. He said if there is a deep recession such as in 1981, sales tax will be affected; but, Mrs. Downing reports that even in those below average years, there was an 8% increase in sales tax. In response to a question from Larry Toney, Mr. Christofferson advised that the two major revenue sources, sales tax and property tax, are taken up to fund the Police Department and Fire Department. Council Member Arness named projects on the priority list such as the Civic Center, Corporation Yard, Convention Center expansion, Gun Range, Library, parking lot extensions, and the Enterprise Park. He said that when Office of Traffic Safety grants are no longer available, jobs funded in the Police Department by those grants will have to be funded from the General Fund. He also mentioned funding to pay off the old debt of the Electric Utility for right-of-way acquisition and paying off the General Fund debt. He said he prefers to pay cash, rather than borrowing. He referenced the impact of inflation in personnel costs with a 5% increase in salary over the next ten years which will amount to $8 or $9 million annually. Mr. Bill Gelonek asked to speak on the subject of charging rent to City Departments to provide a down payment for future costs of paying the debt service for the facilities, i.e., the Corporation Yard and Civic Center. He noted that part of the money comes from taxes over which the taxpayers have no control and part of it comes from enterprise funds. As that money is allocated from Departments, it must come from the rate payer in the form of an increase in their charges. It is not that facilities need to be built in the right place and that it is done correctly; but, he asked if the rate payers have been consulted to see if they are willing to take a percentage of their payment and pay for a Civic Center and Corporation Yard. He favors the facilities, but he questioned paying for it out of current revenues. He pointed out that every new person moving to town adds to the costs. Council Member Arness responded that space needs is an appropriate charge to a Utility. He considers it an in lieu charge to Utilities, equivalent to a Franchise Fee. Council Member Dahl emphasized that care should be taken that the Electric Department not pay a disproportionate amount of rent for the Corporation Yard and Civic Center. Mr. Gelonek reiterated that people have never been asked if they wanted to pay for it that way. In the past, the public has been asked to float bonds for this type of project. If the public does not want it, should it be built? The public should have the opportunity to say yea or nay. He said he would apply the same logic to the Spring Creek Project. Mr. Christofferson opined that these are long standing projects that have been openly discussed. The public elects the City Council and leaves the decisions to them. He said this is parallel to the $65 million Electric financing of a few years ago. The law sets up the type of transactions that require a public vote and this is not one of them. Mayor Buffum recalled that Council adopted a resolution stating that when those monies are used, it requires Council's endorsement. Council Member Moss said this is a good indication of how well the system works. The Commission is concerned and aroused and is making its points well known. Those concerns will be addressed. Council has been elected to make those decisions. He said this City Council should not be painted with the same brush as the City Council of 18 years ago when Electric Reserves were used. It is not practical, feasible, or beneficial to go to the public and ask every time a commitment is made. State laws specify when to go to the public on funding issues. Mayor Buffum observed that the media often gets in control during the initiative process. Director of Finance Downing requested direction from Council on how it prefers information to be provided in the future. 12 12/01/90 Mayor Buffum replied that the graphs are marvelous and she would like to see more of that. Mr. Alan Dank stated he is impressed with the way Council is operating. He said that above a certain dollar value, public opinion should be solicited. 13 12/01/90 RECESS At the hour of 12:20 p.m., Mayor Buffum recessed the meeting for lunch. At the hour of 1:30 p.m., Mayor Buffum reconvened the meeting. GANG ACTIVITY (P-150-150) Council Member Dahl said he asked Chief Blankenship to give a presentation on gang activity in Redding. Chief Blankenship reported that the Police Department has been educating itself on gang activity over the last two years in order to discourage the proliferation of such activity in this area. While the department is well aware of the encroachment of out-of-town gang members from the Los Angeles area, he said to identify them publicly would be to give them credibility, and he requested discretion in identifying gang names. Chief Blankenship reported that working through the Shasta Interagency Narcotics Task Force program, several members have been arrested, prosecuted, and sentenced. The Department has been working closely with Redding schools to educate the educators about gang problems and to gain information from the schools that enables the Department to quickly address problems. Police Investigator Patrick Tennant reviewed the nature and growth of gangs in the Los Angeles area. He said gangs began as school rivalry; but in the 1980's, drugs became a heavy factor. Different types of gangs were described. Police Stop Officer Jeffrey Robinson presented slides indicating evidence of gang activity in Redding. Police Investigator Tennant described how the Department is addressing the problems as follows: - Educating Officers - School Liaison Meetings - School Resource Officer Program - Meetings with Recreation and Parks Department - Close Cooperation with Shasta County District Attorney - Close Cooperation with Shasta County Probation Department - Interagency Intelligence Networking - Community Education The Department further plans: - Serious Habitual Offender Program - Group Home Information Mayor Buffum noted that Redding and Shasta County have more than its share of Group Homes because land costs are low here. Chief Blankenship stated that most of the Group Homes are well managed, and he acknowledged that there are more beds in this area than in Los Angeles and San Diego Counties. One of the problems is that authorities are not provided with any history of the youths placed here. Police Lieutenant Charles Byard emphasized that the community must be involved in understanding and addressing the problem. Council Member Dahl thanked Chief Blankenship and his officers for the presentation and encouraged a strong deterrent program in order to preserve the social fabric of neighborhoods. MOTION: Made by Council Member Dahl, seconded by Council Member Fulton, that Council sanction a sub-committee, including Council Members Fulton and Dahl, to initiate talks with school boards to develop strategies to deal with "gang" related problems, and set a deadline of January for organizing the Police Public Safety Task Force. The Vote: Unanimous Ayes City Attorney Hays commented that new legislation is needed at the State level to get beyond the kid glove approach with juvenile offenders. 14 12/01/90 Chief Blankenship advised that Assemblyman Statham has shown interest in developing new legislation. Mayor Buffum noted that the League of California Cities has a sub-committee working on the problem. She suggested that Northern California counties, which are heavily impacted by Group Homes, band together in problem solving. She suggested that Senator Elect Thompson also be contacted. CONCEALED WEAPONS PERMIT POLICY (P-150-150) Chief Blankenship advised that, under current California law, the Chief of Police or Sheriff has the authority to issue a California Concealed Weapons Permit. Chief Blankenship indicated that there have been several court decisions in recent years which have made the Police Chief or Sheriff vicariously liable in civil cases where the holder of a concealed weapons permit used a weapon without appropriate training or in an unlawful or unreasonable manner. He explained that the words "vicariously liable" mean the Police Chief or Sheriff can be sued on an individual basis (personal lawsuit), and their personal property could be liquidated, and/or jeopardized, to meet the cash settlement as ordered by the court. Police Chief Blankenship noted that Shasta County is the third highest county in the State for concealed weapons permits issued, and 174 permits have been issued in the City. He stated that to reduce his personal liability, he will be requiring that certain policies be conformed to prior to considering the issuance of a concealed weapons permit. The policies will become effective January 1, 1991. For those who already have concealed weapons permits, Chief Blankenship confirmed that Shasta College has a 14-hour course entitled "PC 832", which would meet the established requirements. Chief Blankenship stated that Title II, Chapter 1, Articles 1, 2, and 3, of the California Penal Code allows the Chief of Police to issue a concealed weapons license upon proof that the person applying is of good moral character and that good cause exists for the issuance. Good cause will be determined by the Police Chief upon consideration of the stated reasons in the application. Good cause may be determined by a demonstrated threat to personal or family safety that cannot be resolved by alternatives. A license may include any reasonable restrictions or conditions which the issuing authority deems warranted, including restrictions as to the time, place, and circumstances under which the person may carry a concealed firearm. He explained that applicants will be required to: 1) Complete an Information Request and waivers. Submit the application and waivers (including PC 832 certificate) to the Administrative Captain, who will contact the applicant at a later time for an appointment with the Chief of Police and the Range Master. 2) Obtain certificate of completion for training in the carrying and use of firearms (PC 832). Attach to application. The mandatory 832 P.C. firearms course offers the following instruction: 1) The use of deadly force ramifications; 2) General safety precautions; 3) Care and cleaning of weapons; 4) Shooting principles and shooting techniques 3) Be able to demonstrate personal liability coverage in the amount of $500,000. 4) Applicant will be required to furnish the weapon(s) to be carried and 50 rounds of ammunition for each weapon to be used in qualifying. 5) Applicant will be notified of the date and time of interview with the Chief of Police or his designee within 30 days. Council Member Arness remarked that this is a small imposition, and he has no problem with the policy. 15 12/01/90 Council Member Moss supported the new policy as being logical and said that testing has a good parallel to applying for a driver's license. Council Member Fulton commented that this is a drastic change from past procedures. He concurs with the requirements for insurance, training and testing, but thinks it is overkill; it is indirect gun control, and the requirements are somewhat heavy handed. He opined that there have been no problems in the past. Chief Blankenship responded that circumstances in the community have changed, and as an agent of the City, he is held responsible, and it is important for the Council to be aware that he has taken proper precautions. City Attorney Hays pointed out that the 14-hour course is designed to educate persons on when it is appropriate to use concealed weapons and what the ramifications are. Council Member Dahl supported the Police Chief's policy and said the requirements are no more restrictive than those for a driver's license. Mayor Buffum said she agreed with Dr. Fulton's concerns, because she is tired of having more restrictions imposed because of liability threats. PROCEDURES FOR SELECTING COMMISSIONS, TASK FORCE AND COMMITTEE MEMBERS (B-080) Council Member Arness inquired if there are any published procedures or goals for the selection of Commissioners, committee persons, or Council liaison appointments. He said that Council often does not get appointment information until the day of the meeting, which does not give sufficient time to study the application and determine what the applicant's goals are. He feels sometimes he is asked to vote for someone he still has reservations about. Council Member Dahl responded that it is the Mayor's responsibility to interview all the people who apply and then submit the recommendation to Council for concurrence. Council Member Fulton conveyed that any Council Member can submit names for consideration. Council Member Moss noted that the appointment process gives the Mayor a strong, extra power that sets the character of a Commission for a long time. Mayor Buffum commented that appointments to the Public Safety Task Force were requested two and one-half months ago, and she still has not received suggestions from Council. She reviewed the selection procedures and noted that the burden of providing information is on the applicant. Mayor Buffum said the nomination should not be considered unless the person has shown enough interest to fill out an application. She said that proposed appointments are provided to Council at least three to four days prior to a meeting. Council Member Moss suggested that if three members of Council do not agree with the Mayor's appointment, they should be able to place nominations from the floor, if an application is on file. Mayor Buffum cautioned that appointments should be made carefully, with a goal of getting the best people to do the best job. RIVER AND WATERWAYS COMMISSION (B-080-385) Mayor Buffum said that with the assistance and concurrence of Council Member Moss, she offered the following names for appointment to the River and Waterways Commission: Randall R. Smith for a four-year term expiring January 1, 1995; Michael L. Jones for a four-year term expiring January 1, 1995; Paul Wertz for a three-year term expiring January 1, 1994; Richard L. Baumann for a three-year term expiring January 1, 1994; Ann Duchi for a two-year term expiring January 1, 1993; Patrick Buckley for a two-year term expiring January 1, 1993, and Richard Johnson for a one-year term expiring January 1, 1992. 16 12/01/90 MOTION: Made by Council Member Arness, seconded by Council Member Dahl, appointing Randall R. Smith for a four-year term expiring January 1, 1995; Michael L. Jones for a four-year term expiring January 1, 1995; Paul Wertz for a three-year term expiring January 1, 1994; Richard L. Baumann for a three- year term expiring January 1, 1994; Ann Duchi for a two-year term expiring January 1, 1993; Patrick Buckley for a two-year term expiring January 1, 1993, and Richard Johnson for a one-year term expiring January 1, 1992. The Vote: Unanimous Ayes SHASTA COUNTY REGIONAL LIBRARY FACILITIES AND SERVICES COMMISSION (B-080-477) Mayor Buffum reported that she and Council Member Dahl interviewed Dr. Francis Grubbs, President of Simpson College, as a candidate for the City representative to the new Regional Library Commission. Dr. Grubbs' application was previously circulated to each Council Member. She noted that Dr. Grubbs is one of the few people in the community with experience in putting a library together. She stated that Dr. Grubbs said that he would serve at the pleasure of the entire Council and would take his direction through workshops with Council. MOTION: Made by Council Member Moss, seconded by Council Member Dahl, appointing Dr. Francis Grubbs as the City representative to the Shasta County Regional Library Facilities and Services Commission. The Vote: Unanimous Ayes ELECTRIC UTILITY RESERVES (E-090 and B-130-070) Council Member Arness suggested that if consideration is to be given to the resolution proposed by the Electric Utility Commission at the last regular meeting, that it be made more generic to include, Water, Sewer, and all Enterprise Funds. Council Member Dahl suggested that the pay back provision should be "at end of next fiscal year" to give a little more latitude. Mayor Buffum explained that the rate mechanism on the Reserve applies to the existing year. Waiting an extra year would cause the rates to be automatically increased. Director of Finance Downing advised that the rate format could be changed. Electric Utility Commissioner Potter stated that in previous resolutions adopted by City Council, a 20% reserve in connection with operating funds has been indicated. If reserves fall below 20%, in the next fiscal year it is necessary to adopt a rate based on retirement of that obligation or be able to bring that obligation back to 20%, plus any increase in costs on the day-to- day operation of the utility. One other consideration is that, although this gives Council the right to do it, it is felt that Proposition 4 precludes the City from doing anything with these funds. Proposition 4 states enterprise funds will not be used for other than enterprise functions. Assistant City Manager McMurry indicated that this is a question for the City Attorney; and based on previous research by the City Attorney, it is not a problem. As interpreted by the Courts, the City is permitted to borrow from the utility funds under Proposition 4. Electric Utility Commissioner Potter indicated that, in the Budget message to the City Council in 1987, that fact was specifically covered. Council Member Arness said the rate mechanism was developed and adopted by Council; and therefore, Council can change it, making it 15% or 25%. The Commission's other concern is about tracking those loans, and everything being done now should deal with the tracking. Council Member Moss felt that the rate structure could be restructured so it does not affect the ratepayer. There are times when one would not want to borrow $2, $3, or $4 million for 12 to 18 months through the bond market. The ability to use other funds, and repay it later, can save the public considerable money. He said the City should retain its ability to use the 17 12/01/90 City's reserves for a short period of time, with full public knowledge of its being used, and Council's full 18 12/01/90 acceptance of responsibility. However, to pay it back in the same fiscal year in order to fit some structure that Council has the ability to change does not make sense. It can be accomplished very simply and easily out in front of the people and the Electric Utility Commission can get what it wants and the City can get what it needs. Electric Utility Commissioner Potter pointed out that those who sell bonds to the Electric Department, in part, determine what the reserve will be, and the last thing the Commission wants is to see Bond Counsel require the reserve maintained at a certain amount. At this point in time, reserves exceed the requirements of Bond Counsel; but, it is entirely conceivable if it falls too low, a third party intermediatory could develop. The funds which are being utilized are dedicated funds under Proposition 4 and should be utilized in a manner that is prescribed by the Proposition. He stated that what was being asked is that if the City is going to borrow money, acknowledge it, and pay it back within the year so the ratepayer will not be impacted. He also said that during discussion about the proposed firing range for the City, there was an indication that there was going to be, at least in part, the utilization of Water Department Funds to service the firing range and expand the operation. In essence, the ratepayer of the Water Utility would be picking up the cost of the firing range. City Manager Christofferson clarified that there is $300,000 in the budget for the firing range and it is not out of the Water Utility fund. Electric Commissioner Potter asked if at one time if the use of Water funds for the firing range was discussed. City Manager Christofferson responded that a lot of things have been discussed but have not been done. All the possibilities, and all of the angles are looked at, but funds have not been borrowed from that source. If money is spent on the firing range, which is looking less and less likely all the time, it would not be from the Water Utility fund, it would be the $300,000 allocated from the General Fund. Electric Commissioner Potter said he is not involved in the Water Department budget so he really does not understand it. It is his understanding, however, that in connection with the Electric Utility, funds have been taken from the Electric Department reserves and utilized within the last year to acquire property and returned to the Electric fund after posting adjustments. One of his main concerns is that the City is going to find itself in a position where it is going to have to, because of utilization of these funds, cover a 10% to 12% breathing range at that time. That is not going to be very palatable to the people of the City of Redding. Mayor Buffum indicated the message had been loud and clear, and she asked for time for Council to work among themselves and see how they could make this fall into place. She felt Council, at this point at least, has a commitment to look at the use of reserves and accepting responsibility for it. Council appreciates what has been done, and obviously, the point has been made a number of times. Council will take the issue under advisement; however, Council needs time to do more work on this. Council Member Dahl requested that Council hold a joint meeting with the Electric Utility Commission within the next 60 days. Mayor Buffum suggested that Council meet with the EUC at the first joint meeting date in February. City Manager Christofferson indicated that the meeting already scheduled for that date would have to be postponed. Noting that the schedule has already been distributed, he said changes will need to be made accordingly. Mayor Buffum noted that an additional meeting could be scheduled, if necessary. 19 12/01/90 ADJOURNMENT There being no further business, at the hour of 3:44 p.m., Mayor Buffum declared the meeting adjourned to 6:30 p.m., December 4, 1990, at the City Council Chambers, 1313 California Street, to discuss personnel matters pursuant to California Government Code Section 54957.6(a). APPROVED: __________________________________________ Mayor ATTEST: ____________________________________ City Clerk