Loading...
HomeMy WebLinkAboutMinutes - City Council - unsigned - 1991-03-051 3/5/91 City Council, Regular Meeting Council Chambers Redding, California March 5, 1991 7:00 p.m. The Pledge of Allegiance to the Flag was led by Planning and Community Development Director Perry. The Invocation was offered by Reverend Benjamin Pent of the Westside Church. RECESS At the hour of 7:02 p.m., Mayor Buffum stated that Council will recess for the purpose of holding a meeting of the Housing Authority. At the hour of 7:07 p.m., Mayor Buffum reconvened the meeting to regular session. The meeting was called to order by Mayor Buffum with the following Council Members present: Arness, Dahl, Fulton, Moss, and Buffum. Also present were City Manager Christofferson, Assistant City Manager McMurry, Director of Planning and Community Development Perry, Director of Public Works Galusha, Electric Utility Director Lindley, Police Chief Blankenship, Electric Utility Engineering Manager Russell, Director of Finance Downing, Director of Recreation and Parks Riley, Director of General Services Masingale, Electric Utility Field Foreman Smith, Associate Civil Engineer Russell, Senior Planner Keaney, Director of Information Systems Kelley, Housing Manager Maurer, Airports Director Ruff, Assistant Finance Director Sundin, Housing Supervisor Garrity, Transportation Coordinator Duryee, Lead Systems Analyst Erwin, Public Information Officer Bachman, Administrative Assistant Anstine, City Clerk Nichols, and Secretary to the City Council Moscatello. CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Minutes - Special Meeting of November 20, 1990 Adjourned Regular Meeting of January 19, 1991 Special Meeting of January 31, 1991 Regular Meeting of February 5, 1991 Special Meeting of February 12, 1991 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 16, check numbers 165939 through 166559 inclusive, in the amount of $3,555,504.11, be approved and paid, and Payroll Register No. 17, check numbers 311563 through 312434 inclusive, in the amount of $986,432.37, for the period February 03, 1991, through February 16, 1991, be approved. TOTAL: $4,541,936.48 Resolution - Agreement with Economic Development Corporation for Economic Development Revolving Loan Fund (G-100-030-035 & B-130-030-045) It is the recommendation of the Planning Director that Resolution No. 91-90 be adopted, a resolution of the City Council of the City of Redding approving the agreement between the City of Redding and the Economic Development Corporation, for the period December 1, 1990 through November 31, 1991, providing additional funding in the amount of $40,700 for the Economic Development Revolving Loan Fund, and authorizing the Mayor to sign same. Funds for the revolving loan fund are included in the Community Development Block Grant Program for 1988-90. Award of Bid - Bid Schedule No. 2437, Aluminum Overhead Conductor (B-050-100) It is the recommendation of the Electric Director that Bid Schedule No. 2437, aluminum overhead conductor, be awarded to the low bidder, Reynolds Metals Co., in the amount of $53,465.66. Funds for this purchase are included in the 1990/91 budget. Award of Bid - Bid Schedule No. 2438, 15kV URD Cable #2 and #4/O Aluminum (B-050-100) 2 3/5/91 It is the recommendation of the Electric Director that Bid Schedule No. 2438, 15kV URD Cable #2 and #4/O Aluminum, be awarded to the low bidder, Reynolds Metals Co., in the amount of $118,961.89. Funds for this purchase are included in the 1990/91 budget. Resolution - Open Market Negotiations for Used Car Purchase (B-050-100) It is the recommendation of the Airports Director that Resolution No. 91-91 be adopted, a resolution of the City Council of the City of Redding dispensing with the bidding process; declaring that a used sedan for the Airports Department may be acquired in the open market; and authorizing the negotiation thereof by the City Manager. Funds in the amount of $14, 400 are included in the 1990/91 budget for this purchase. Approval of Modifications to Fixed Based Operation at Redding Municipal Airport - Shasta Enterprises/IASCO (C-070-100 & A-090-100) It is the recommendation of the Airports Director to approve interior modifications to the IASCO/Shasta Enterprises facility at Redding Municipal Airport to accommodate their contract pilot training program. Said modifications will be made by IASCO and the request has the concurrence of the Lessee, Shasta Enterprises. Award of Bid - Bid Schedule No. 2432, Remodel Municipal Airport Office Resolution - Transferring Funds * (B-130-070 & B-050-100 & A-090-100) It is the recommendation of the General Services Director that Bid Schedule No. 2432, remodel Municipal Airport office, be awarded to the low bidder, Moore & Associates, in the amount of $8,145. Funds in the amount of $4000 were budgeted for this project and a supplemental appropriation in the amount of $4,200 is necessary. Therefore, it is recommended that Resolution No. 91-92 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 41st amendment to the City Budget Resolution No. 90-362 transferring $4,200 for the remodel of the Municipal Airport Office. Award of Bid - Bid Schedule No. 2435, High Density Landfill Compactor West Central Landfill Resolution - Lease/Purchase Agreement (B-050-100 & S-020-900) It is the recommendation of the General Services Director that Bid Schedule No. 2435, high density landfill compactor, be awarded to the low bidder, SMA Equipment, Inc., in the amount of $261,820.00. Funds for the annual lease purchase are included in the 1990/91 West Central Landfill budget. It is also recommended that Resolution No. 91-93 be adopted, a resolution of the City Council of the City of Redding authorizing the City Manager to negotiate a lease/purchase agreement for the financing of one high density landfill compactor to be purchased from SMA Equipment, Inc., in the amount of $261,820, and authorizing the City Manager to execute all necessary documentation when available. Resolution - Document Destruction (A-050-055-750) It is the recommendation of the City Clerk that Resolution No. 91-94 be adopted, a resolution of the City Council of the City of Redding authorizing the destruction of certain records. Resolution - Tree Planting Day and Arbor Week (A-050-060-600 & A-050-220-075) It is the recommendation of the Recreation and Parks Director that Resolution No. 91-95 be adopted, a resolution of the City Council of the City of Redding declaring March 7, 1991, as Community Tree Planting Day, otherwise known as Arbor Day; and March 7 through 14, 1991, as Arbor Week. Guardrail Safety Project - Agreement with Caltrans (T-080-300 & S-050-100) It is the recommendation of the Public Works Director to proceed with the Guardrail Placement Program in conjunction with Caltrans. Funding has been approved under the Hazard Elimination Program, and the estimated cost of the project is $200,000. The City will be responsible for project costs in the 3 3/5/91 amount of $20,000, and funds will be budgeted in the 1991/92 budget for construction. It is also recommended that staff proceed with design work. Advertise for Bids - Canyon Hollow Sewer Siphon Modification Resolution - Appropriating Funds * (B-130-070 & W-020-575 & B-050-020) It is the recommendation of the Public Works Director to proceed with advertisement for bids for the modification of the Canyon Hollow sewer siphon. The estimated cost to lower the top of the structure and replace the vent line is $38,000, and funds were not budgeted for this project in the 1990-91 budget. It is, therefore, recommended that Resolution No. 91-96 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 40th Amendment to the City Budget Resolution No. 90-362 appropriating $38,000 for modification of the Canyon Hollow Sewer Siphon. Notice of Completion - Bid Schedule No. 2360, Sacramento River Trail, Phase 8 (B-050-020 & P-050-460-700) It is the recommendation of the Public Works Director that Bid Schedule No. 2360 (Job No. 9929), Sacramento River Trail, Phase 8, awarded to Russ Howington, be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $177,385.46. Resolution - Abatement Proceedings - 1242 Ledell Street, owned by Inez A. Harris (A-030-070) It is the recommendation of the City Attorney that Resolution No. 91-97 be adopted, a resolution of the City Council of the City of Redding of intention to begin legal proceedings of abatement under Chapter 9.36 of the Redding Municipal Code on certain real property in the City of Redding located at 1242 Ledell Street, owned by Inez A. Harris. Resolution - Abatement Proceedings - 1801 Willis Street (1814/1818 Grace Avenue), owned by Charles and Barbara Lobo (A-030-070) It is the recommendation of the City Attorney that Resolution No. 91-98 be adopted, a resolution of the City Council of the City of Redding of intention to begin legal proceedings of abatement under Chapter 9.36 of the Redding Municipal Code on certain real property in the City of Redding located at 1801 Willis Street (1814/1818 Grace Avenue), owned by Charles and Barbara Lobo. Resolution - Abatement Proceedings - 1273 Old Alturas Road, owned by Fidel J. and Patricia A. Almazan (A-030-070) It is the recommendation of the City Attorney that Resolution No. 91-99 be adopted, a resolution of the City Council of the City of Redding releasing the proceedings of abatement under Chapter 9.36 of the Redding Municipal Code on certain real property in the City of Redding located at 1273 Old Alturas Road, owned by Fidel J. and Patricia A. Almazan. MOTION: Made by Council Member Dahl, seconded by Council Member Fulton, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. Voting was as follows: Ayes: Council Members - Arness, Dahl, Fulton, Moss, and Buffum Noes: Council Members - None Absent: Council Members - None Resolution Nos. 91-90, 91-91, 91-92, 91-93, 91-94, 91-95, 91-96, 91-97, 91-98, and 91-99 are on file in the office of the City Clerk. WRITTEN COMMUNICATIONS Letter from Redding Specialty Hospital (A-050-060) City Clerk Nichols stated that Robert Howard of the Redding Specialty Hospital is not able to attend tonight's meeting and asked to make his presentation at the City Council meeting of March 19, 1991. 4 3/5/91 It was the concurrence of Council to allow the Redding Specialty Hospital to make its presentation on March 19. 5 3/5/91 Letter from California Park & Recreation Society (P-050-460-700) City Clerk Nichols stated that a letter was received from the California Park & Recreation Society stating that the Sacramento River Trail Pedestrian Bridge was selected for the State Facility Design Award for the 1990 Facility Design and Environmental Planning Award. Mayor Buffum noted that the City is very happy to be receiving this award. Recreation and Parks Director Riley noted that the bridge also received awards from the Portland Cement Association and Caltrans. Stating that while making the decision to construct the bridge was very difficult, Mr. Riley noted that the accolades are now coming in. Letter of Resignation - Board of Appeals Member Woodrow Carr (B-080-050) City Clerk Nichols stated that a letter of resignation was received from Board of Appeals Member Woodrow Carr. Mayor Buffum commented that it is with deep regret that Council accepts the resignation of Woodrow Carr. The City owes a debt of thanks and gratitude to Mr. Carr. Mayor Buffum stated that Council will be receiving a list of people willing to serve on the Board of Appeals from which to select new Board Members. PUBLIC HEARING - re General Plan Amendment Application GPA-18-90, by Brian Burk (West of Airport Road, east of Clover Creek, and north of the Wooded Acres North Subdivision) (G-030-010) The hour of 7:00 p.m. having arrived, Mayor Buffum opened the public hearing re General Plan Amendment Application GPA-18-90. 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 February 27, 1991 City Clerk Nichols advised that no protests were received. Planning and Community Development Director Perry stated that the Planning Commission recommended approval of a request to reclassify property from "Residential, 2.0 units per acre" to "Planned Industrial" and "Office." The property is outside the City limits; although, the north half of the area is included within an annexation request. Mr. Perry conveyed that Mr. Burk asked to amend the northerly 27 acres and the Planning Commission expanded the area south to the Wooded Acres North Subdivision. It is the recommendation of staff to approve the amendment in concept, and staff will submit a resolution at a later date. Mayor Buffum determined that there were no comments from the floor. MOTION: Made by Council Member Moss, seconded by Council Member Arness, that the public hearing be closed. The Vote: Unanimous Ayes MOTION: Made by Council Member Arness, seconded by Council Member Dahl, that Council make the following findings regarding General Plan Amendment Application GPA-18-90: 1. Project is compatible with the Redding General Plan; 2. Project will not significantly alter existing land form; 3. Project is compatible with surrounding land use; 4. Project is compatible with the Code of the City of Redding, California; and ratify the Negative Declaration authorized by the Board of Administrative Review on January 16, 1991. The Vote: Unanimous Ayes. 6 3/5/91 MOTION: Made by Council Member Arness, seconded by Council Member Dahl, to approve General Plan Amendment Application GPA-18-90, by Brian Burk, in concept, and direct staff to submit a resolution for adoption at a later date. The Vote: Unanimous Ayes PUBLIC HEARING - re Planned Development Application PD-2-90, The Commons on Churn Creek, by Inn Quarters, Inc. (East of Churn Creek Road and south of Rose Lane) (L-010-210-770) The hour of 7:00 p.m. having arrived, Mayor Buffum opened the public hearing re Planned Development Application PD-2-90. 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 February 27, 1991 City Clerk Nichols advised that no protests were received. Planning and Community Development Director Perry reported that the Planning Commission recommended approval to rezone and subdivide 8.9 acres to create a 72-unit planned development consisting of groupings of attached single-family units. The applicant has requested five bonus units, and a waiver to Section 18.36.090(a) to only provide 16.5% to 20% of the gross square footage as private open space. The developer is also requesting a waiver from the building setback requirements to set back one building three feet from the rear property line which abuts the area to be dedicated to the City for open- space and park purposes. It is the recommendation of staff to approve PD-2- 90. Mayor Buffum determined that there were no comments from the floor. MOTION: Made by Council Member Arness, seconded by Council Member Dahl, that the public hearing be closed. The Vote: Unanimous Ayes MOTION: Made by Council Member Dahl, seconded by Council Member Fulton, that Council make the following findings regarding Planned Development Application PD-2-90: 1. Project is compatible with the Redding General Plan; 2. Project will not significantly alter existing land form; 3. Project is compatible with surrounding land use; 4. Project is compatible with the Code of the City of Redding, California; and ratify the Negative Declaration authorized by the Board of Administrative Review on January 2, 1991. The Vote: Unanimous Ayes. MOTION: Made by Council Member Dahl, seconded by Council Member Fulton, that the Tentative Map for PD-2-90 be approved subject to the Conditions of Approval, and that in accordance with the Government Code of the State of California, the City Council finds and declares that, as set forth in Government Code Section 66474, none of the conditions as listed in (a) through (g) exists with regard to this proposed subdivision and that the proposed subdivision is consistent with the Redding General Plan and applicable specific plans; and in accordance with Section 18.36.100 of the Redding City Code, the Council waives the minimum private open-space requirements in Section 18.36.090(A), the building setback requirement in Section 18.36.060, and makes the finding to approve the five bonus units. The Vote: Unanimous Ayes Council Member Dahl offered Ordinance No. 1955 for first reading, an ordinance of the City Council of the City of Redding amending Section 18.06.020 of the Redding Municipal Code relating to the rezoning of certain real property in the City of Redding (PD-2-90). ORDINANCE NO. 1953 - Rezoning Application RZ-2-90, by City of Redding (Between Lake Boulevard and July Way) (L-010-230) 7 3/5/91 MOTION: Made by Council Member Fulton, seconded by Council Member Dahl, that the full reading of Ordinance No. 1953 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Fulton, seconded by Council Member Arness, that Ordinance No. 1953 be adopted, an ordinance of the City Council of the City of Redding amending Section 18.06.020 of the Redding Municipal Code relating to the rezoning of certain real property in the City of Redding (RZ- 2-90). Voting was as follows: Ayes: Council Members - Arness, Dahl, Fulton, Moss, and Buffum Noes: Council Members - None Absent: Council Members - None Ordinance No. 1953 is on file in the office of the City Clerk. ORDINANCE NO. 1954 - Card Rooms (L-070-030) MOTION: Made by Council Member Fulton, seconded by Council Member Dahl, that the full reading of Ordinance No. 1954 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Dahl, seconded by Council Member Fulton, that Ordinance No. 1954 be adopted, an ordinance of the City Council of the City of Redding amending Redding Municipal Code Title 6, Business Taxes, Licenses, and Regulations, by deleting Chapter 6.14 in its entirety, and substituting therefor a new Chapter 6.14 pertaining to Card Rooms. Voting was as follows: Ayes: Council Members - Arness, Dahl, Fulton, Moss, and Buffum Noes: Council Members - None Absent: Council Members - None Ordinance No. 1954 is on file in the office of the City Clerk. DOWNTOWN PARKING PROPOSAL (M-010-200) City Manager Christofferson conveyed that Bob Dicker, Downtown Mall property owner and merchant, is contemplating plans to convert some or all of his existing retail store into office uses and has submitted a proposal to create a parking assessment district made up of property owners considered part of the Mall and change the designated permit parking and parking hours to benefit a mixed-use complex. Although the plan may need some fine tuning, Mr. Christofferson conveyed that the plan seems to be reasonable and workable. He said Mr. Dicker has offered to sponsor the assessment district plan. Council Member Arness stated that the proposal sound great; however, there are some questions to ask and the impact on surrounding property must be looked at, as well as paying off the debt on the parking structure. Council Member Moss said he supports anything to enhance the economic feasibility of the Downtown Mall. He is extremely concerned about the City subsidizing the Mall and anything that would stop the flow of subsidies to the Mall would be a plus. Noting that the City's involvement with the Downtown Mall will never make a profit, he said this may be the proper time for the City to evaluate cutting the City's losses and putting together a program for privatization of the Downtown Mall. He recommended that two council members be appointed to work with the Downtown Mall owners. Council Member Dahl concurred with Council Member Moss and stated that if the Downtown Mall can be weaned from government subsidies and move toward privatization, that would be very healthy. Council Member Fulton cautioned that it will not be easy to get out from underneath the burden of the Mall, but he hoped the Council could do just that without jeopardizing the Mall and the surrounding area. He said Mr. Dicker's proposal is a good idea. 8 3/5/91 Noting that Council Member Arness questioned if she has a conflict of interest in this issue, Mayor Buffum stated that she will be happy to abstain from this issue if Council would desire. This issue arose when Council was considering placing City Hall in the Downtown Mall, and she said she received two differing opinions regarding her participation in that decision. She said the best rule for dealing with conflict of interest is to deal with the perception of one, whether it is in fact real or not. Mayor Buffum said she has been in business at that location across from the Mall for eighteen years. Council Member Fulton asked if Mayor Buffum would like to discuss this matter with City Attorney Hays. Council Member Arness stated that he is comfortable with Mayor Buffum participating in this issue tonight, because a decision either way will not be made tonight. Russ Northrup, representing Payless, stated that this is the right direction to move in, and the retailers approve of the parking proposal. Mayor Buffum asked what percentage of parking is for retail and for office employees. Mr. Northrup said 70% is now protected for retail; and under the new proposal, about 40% is for retail. Mayor Buffum appointed Council Members Moss and Fulton to work with City Manager Christofferson on Bob Dicker's proposal pertaining to parking in the Downtown Mall. REGIONAL LAW ENFORCEMENT FIRING RANGE (C-070-010-050) City Manager Christofferson recalled that at the joint meeting with the Shasta County Board of Supervisors and Anderson City Council, the agencies unanimously supported acquisition of the Finazzo property for use as a regional law enforcement firing range, and that approval included the possibility of condemnation, as a last resort. Mr. Christofferson noted that Mr. Finazzo has expressed his willingness to meet and discuss the matter. However, noting that the City of Redding was named as the lead agency, Mr. Christofferson suggested that Council approve initiating procedures aimed toward condemnation in order to move the project forward. He explained that this process can be terminated at any time that an agreement is reached. Council Member Fulton asked if all the work will be done by the lead agency. Mr. Christofferson said yes. Council Member Moss asked if the City would be required to pay the fair market value for the property. Mr. Christofferson replied yes; however, in condemnation proceeding, the sale price will be determined by the court. Council Member Fulton asked Mr. Finazzo if he wants to have his property appraised. Mr. Finazzo indicated that he will not get the property appraised until the matter goes to litigation. He said the fair market value should include the income from his rental for 30 years. He added that his property across the street from the proposed firing range was appraised at $7500 an acre. Mayor Buffum conveyed that a subcommittee, comprised of Council Member Fulton and herself, would like to meet with Mr. Finazzo prior to initiating condemnation proceedings. Council Member Fulton opined that Mr. Finazzo should have an appraisal because there are no figures on the other side to work with. Mr. Christofferson conveyed that the City Attorney has advised that both sides should have their appraisal prior to negotiations. Mayor Buffum asked if Mr. Finazzo would be willing to have an appraisal prepared. Mr. Finazzo said he would have an appraisal prepared only if the City is willing to pick up the tab; otherwise, he will wait until it goes to litigation. 9 3/5/91 Mayor Buffum asked if the City would be willing to have another appraisal prepared at City expense. Mr. Christofferson said no. Council Member Fulton suggested that the meeting be delayed until both sides have an appraisal. Mayor Buffum recommended that the two parties meet and talk. She stated that staff can put together a meeting next week. 10 3/5/91 Noting that Anderson and Shasta County were unanimous in this decision to condemn the property as a last resort, Council Member Dahl asked when this matter will come back to Council. He questioned if there are any deadlines to meet. Mr. Christofferson said he is not aware of any firm deadlines. The meeting will be set as quickly as possible and the matter brought back to Council at the next meeting. Council Member Dahl suggested that Anderson and Shasta County be notified that the City is moving ahead. RESPONSE TO WARD GANDY'S ALLEGATIONS (F-205 & B-130-070) City Manager Christofferson reviewed the Report to City Council dated February 25, 1991, in response to the allegations made by Ward Gandy at the City Council meeting of February 19, 1991, and it is incorporated herein by reference. Mr. Christofferson stated that the general fiscal health of the City of Redding does not reflect the doom and gloom picture presented by Mr. Gandy, but rather it is quite positive, if a bit on the lean side. Since Proposition 13, and during the intervening period from 1978, this City has lost an estimated total of $21,292,300 that could have been spent on public services. Later, California city finances were further adversely impacted by the loss of General Revenue Sharing, and Redding lost up to estimated $5,585,800, which also could have been applied to public services. The City has experienced significant growth in the past several years which has resulted in the demand for additional services. Despite revenue reductions and the requirement for additional service, City government has met the challenge without fanfare or crises. Redding is actually in very sound financial shape; however, no one can guarantee that the City will never experience any financial difficulty. Every city and every business takes reasonable and prudent risks, and it is Council's responsibility to make the judgment calls on whether it is prudent to proceed with a program or a project. Regarding the fund balance question, Mr. Christofferson stated that year-end fund balances roll over into the new fiscal year and become one of the resources to start the new year. Certain reserves are set aside and a closing balance is projected. These net balances, in the case of the general fund, have usually approximated $1 million to $3 million over the past 10 to 15 years. Mr. Christofferson noted that Mr. Gandy extended his review into monthly cash balances, apparently in the belief that the general fund was in a deficit position and needed to borrow from other funds. Monthly balances are generally in the $1 million to $2 million area, but cash flow is not constant from month to month. Property tax payments, for example, result in "dry" months, followed by unusually good balances. Mr. Christofferson emphasized that the fundamental purpose of city government is not to make a profit, but to provide public services on behalf of its people. It is necessary to tax the public (through property taxes, sales taxes, gas taxes, fees and service charges, etc.) in order to provide these services. To the extent that insufficient taxes are raised, services cannot be provided at an appropriate level; to the extent that too much revenue is raised, fund balances will begin to build up which means that the public is being taxed too much. At Council's December 1 workshop, staff suggested a fund balance level for the five-year financial plan at the 3% level, or approximately $1.5 million, for the general fund. The closer to precision staff can be in projecting revenue, the better the City is served, as it permits Council to budget public services right up to the edge and reserve only the minimum fund balance consistent with sound public policy. Mr. Christofferson added that staff has never produced more accurate estimates than those done today. Mr. Christofferson noted that if the fund balance trend is sound, the next question is whether new capital projects such as the Corporation Yard, City Hall, and police building are prudent courses of action. It will be necessary to carve the cost of debt service for major projects out of existing revenue. 11 3/5/91 On-going public services must be funded and, at the same time, catch-up for needed public improvements is necessary. The question is whether the level of risk in undertaking major projects is prudent. The question is not so much whether the City can afford to build such projects, but whether we can afford not to build them. These facilities are the very tools with which public services will be provided in the future. He added that inherent in all of this discussion is the question of the level of expenditures proposed for new facilities. Mr. Christofferson emphasized that staff and Council are not contemplating a lavish level of public facilities. Mr. Christofferson summarized that staff believes that the nature of the improvements proposed is reasonable, the cost of debt service can be digested over the years, and these additional costs will not represent an impossible burden on fund balances resulting in some kind of debt spiral. In response to Ward Gandy's question Number 1 (Ward Gandy's questions are incorporated in the City Council Minutes of February 19, 1991), Mr. Christofferson said that a change was made with the 1990-91 budget to reflect only the City of Redding itself. Previously, the budget included several non- city agency budgets (Housing Authority, Redding Bus Authority, Community Access Corporation, and Redevelopment Agency), and staff felt that a clearer picture of the City of Redding would be shown if these agencies were handled separately. This was, therefore, not a "$5 million error," but simply a different and clearer manner of organizing the City budget. In response to question Number 2, Mr. Christofferson said it is not an "overstatement of revenue" that is involved, but rather a simple error in the form of failure to revise a figure in the budget message. The $27,492,030 figure appeared consistently throughout the budget, except in the one location cited where a table in the budget message was overlooked in the revision process. The budget was prepared for adoption based on the detail information presented in the summary section. In response to question Number 3, Mr. Christofferson said it is normal that all revenue and expenditure transactions do not impact cash, and all cash transactions do not result in the recordation of revenue and expenditures. The general fund is not on the cash basis of accounting, but rather it is on the modified accrual basis of accounting as required by generally accepted accounting principles for governmental agencies. Consequently, all revenue does not result from the receipt of cash, and all expenditures do not represent a use of cash. Staff can detail all transactions that impacted the general fund cash for the 18-month period, but to do so would consume a significant number of staff hours. In response to question Number 4, Mr. Christofferson referred to the Boucher property down payment and stated that Rick Hiscocks of Orrick, Herrington & Sutcliffe, the City's bond counsel, indicated that it was appropriate for the Electric Utility to "up-front" some of the costs of the Corporation Yard as long as, in the final analysis, it did not pay more than its proportional share of the project. Mr. Christofferson referred to a letter from Rick Hiscocks, dated February 27, 1991, which is incorporated herein by reference. Mr. Hiscocks' letter of February 27, 1991, states, "it is true that the Electric Department and other utilities of the City may not be required to pay more than their allocable share of the cost of general municipal services, as reasonably determined by the City. On the other hand, it is true that these departments are not entitled to a "free ride" and must be charged for those general government services and costs incurred by the City which are essential to their operations. As you know, the City's financial statements are reviewed each year by an independent auditor who is responsible for assuring that appropriate cost accounting procedures have been followed by the City. In addition, during the past few years the City's financial statements have undergone scrutiny by analysts from national rating agencies, underwriters, bond insurers, and other municipal finance experts when the City has sold bonds or certificates of participation for various capital projects. In all of those reviews, there has been no criticism of the City's accounting practice of allocating indirect overhead costs to City utilities." Mr. Christofferson stated that although the down payment for the Boucher property was posted to the "176 fund," debt issue proceeds have not yet been drawn down for that payment. The issue of whether the Electric Utility will 12 3/5/91 own its Corporation Yard will have to be settled first. If the decision is that the yard will be owned by the General Fund, the utility will be repaid for this payment, plus interest, and debt issue proceeds will not be impacted. Regarding Mr. Gandy's concern that other inappropriate "borrowing" may have occurred from this and other enterprise debt issues, Mr. Christofferson explained that internal controls govern these debt issues. It is only after the requisition is approved by the individuals responsible for the project and the Public Works, Electric, or Planning Departments that it is submitted to the trustee for payment. In response to question Number 5, Mr. Christofferson said that Mr. Hiscocks' legal opinion definitively puts to rest any concerns that anyone may have relative to any of the legal questions arising out of Mr. Gandy's report. Mr. Christofferson conveyed that Sam Sperry, Sturgis, Ness, Brunsell & Sperry, responded to Mr. Gandy's concerns regarding Proposition 13 and Proposition 4, and Mr. Sperry's letter dated February 27, 1991, is incorporated herein by reference. Mr. Sperry states that, "it is accepted beyond question that the City of Redding may properly charge against the electrical enterprise fund appropriate amounts related to the reasonably established cost and expense of maintaining and operating the City's electrical system. I further believe that it is accepted beyond question that the reasonable cost and expense of maintaining and operating the electrical system should include the cost and expense of providing office space, clerical support services and the like, which are reasonably allocated to the electrical system operation." Mr. Christofferson added that City Attorney Hays reviewed all of these legal opinions and summarized his opinion in a memo dated February 27, 1991, which is incorporated herein by reference. In summary, Mr. Hays states that his review leads him to conclude that the prepaid rent scenario as instituted by the City of Redding does not violate any of the provisions of Proposition 13, Proposition 4, or Proposition 62. Proposition 13 states that one cannot institute ad valorem property taxes without there being a vote of the people, and that a special tax requires approval by a two-thirds vote of the electorate. In the opinion of David McMurtry, attorney at law, he does not indicate that the pre-rent charge in fact is a special tax. Mr. McMurtry recognizes that it is perfectly legal for a municipality operating a public utility to accumulate funds derived from utility rates for the construction of future facilities which will be needed to meet future customer demands of that utility. This assumes that the pre-rent which is being charged represents an amount that is commensurate with the use to be made of the facility by the particular utility paying the pre-rent. Mr. Hays states that the best guidance is found in the opinion of Bill Donovan which indicates that to the extent rates are impacted for the benefit of a utility, there is no concern. The City can use those rate structures to provide funds to provide the facilities to be utilized by the utility, and those could well include such things as City Hall accommodations and corporation yards. In response to question Number 6, Mr. Christofferson states that the City of Redding's 1989 and 1990 Certificates of Participation were not of the "Oakland Museum" type of transaction, nor were existing assets used in any way for their security. Rather, the security for the transactions was provided by the assets purchased, which is standard procedure with Certifications of Participation, and none of the proceeds were used as working capital in the general fund. Both of these issues were for equipment financing purposes, and the equipment purchased constituted the security. The 1988 Certificates of Participation are being used to meet the equipment needs of primarily the General Fund through December 1991. The 1989 Certificates of Participation were utilized to refinance some existing high-interest lease purchase contracts and to purchase additional equipment needed by the Solid Waste enterprise. It was never the intent of the City to utilize the proceeds from these issues to fund current operating expenses, and the issue documents were not structured to permit this use. In response to question Number 7, Mr. Christofferson said outstanding project obligations as of December 31, 1990, consist of the following items: the architectural contract has a balance due of $49,867, and an additional $23,332 payable exists for architectural consulting services rendered outside the above mentioned contract. The $210,000 down payment on the Boucher property was made with Electric Utility funds, and the Collin's property is being 13 3/5/91 purchased through payments on a five-year promissory note. The balance due on the note, plus all interest to be paid over the five-year term, is $312,644. In response to question Number 8, Mr. Christofferson said the Risk Management fund necessarily maintains a large cash balance in order to sustain the self- insurance program. A summary of the cash transactions of that fund was provided to Council and he explained that the transactions were customary and normal for risk management operations and did not include advances to other funds. 14 3/5/91 In response to question Number 9, Mr. Christofferson said there has been no secret as to the financing opportunities for the Civic Center and Corporation Yard, but the $80 million financing figure is false and never has been used by any City official or employee. Project costs have yet to be determined and construction costs and related costs are not expected to be of this magnitude. It is a disservice to the public to quote such a figure without any basis. In response to question Number 10, Mr. Christofferson said this question is apparently predicated on the belief that a Corporation Yard design contract for $222,500 was awarded on February 5, 1991. The Council did not make such an award; and once the contract is approved, it will take at least six months for the work to be complete and the contract to be paid in full. There is no $210,000 cash shortfall. Mr. Gandy is confusing cash-flow demands with budget. Cash flow generated by the Corporation Yard "rent" has not been enough at all points to cover that project's cash needs. However, additional funds do exist in the General City Projects division of the Special Development Fund that are more than adequate to cover the short-term cash flow needs of this project. The City's pooled cash is also more than adequate to cover the cash-flow needs of the project. Ultimately, the "rent" and debt issue proceeds will be the source of all cash used for this project. In response to question Number 11, Mr. Christofferson said Mr. Gandy believes that the accounts payable balance on November 30, 1990, exceeded the fund balance of $488,403. Accounts payable at this time included invoices processed through February 21, 1991, totalled $376,786; and it should be noted that the January 31, 1991, cash balance was $1,425,113, reflecting the general monthly trend year to year. In response to Mr. Gandy's other allegations, Mr. Christofferson responded to misconceptions regarding (1) utilization of fund balances; (2) pooled cash and prevailing accounting practices; (3) role of the City Council; (4) fund balances; (5) property transactions and Proposition 13; (6) role of City Manager and Finance Department; (7) water fund and Hunt Ranch "issues"; (8) powers and role of City Council; (9) methodology for financing major project design and land cost; (10) the law; (11) how major projects are planned, managed and accomplished; (12) financing methodologies and project costs; and (13) how assumptions are utilized in long range financial planning. Mr. Christofferson submitted a letter from City of Redding auditors, Nystrom & Company, dated February 26, 1991, which is incorporated herein by reference. L. Bruce Roberts states, "Nystrom & Company performed the independent audit of the general purpose financial statements of City of Redding for the year ended June 30, 1990, in accordance with generally accepted auditing standards and governmental auditing standards, including the standards regarding the going- concern matters ..." Mr. Roberts continues, "Based on our evaluation of the information obtained during the course of our audit of the general purpose financial statements of the City of Redding for the year ended June 30, 1990, ..., we concluded that substantial doubt had not been raised about the City's, or the General Fund's, existence as a going concern for a reasonable period of time. Accordingly, we issued our Independent Auditor's Report on the general purpose financial statements of the City of Redding dated December 3, 1990, in which we expressed an unqualified opinion that ... "the general purpose financial statements ... present fairly, in all material respects, the financial position of the City of Redding at June 30, 1990, and the results of its operations and the changes in financial position of its proprietary funds for the year then ended, in conformity with generally accepted accounting principles..." In response to allegations made by other speakers, Mr. Christofferson noted that Howard Kirkpatrick's remarks seem to be encouragement for the Council to look into Ward Gandy's statements, and that is what Council is doing. Mr. Christofferson said that Don Demsher's remarks seem to be based largely on information secured from Mr. Gandy, concluding that the City probably cannot afford a $35 to $40 million City Hall; and since that is probably at least twice the construction cost contemplated, his mind can be put to rest on that point. The presentation by Larry Toney deals with downtown parking loans, the long- range financial plan, concerns over the assumptions used in discussing project funding, and his pessimism over the service life of buildings. Mr. 15 3/5/91 Christofferson noted that a majority of Mr. Toney's concerns, however, will be dealt with as the 16 3/5/91 contemplated projects take a clearer and more definitive shape in the future. Most of the answers desired simply will not be available until the buildings are actually designed. In Bill Potter's presentation, Mr. Potter indicated that he felt that the long-range Five-Year Financial Plan is flawed and incomplete, based on methodology he would not utilize. By way of response, Mr. Christofferson said the Five-Year Financial Plan is not fully developed, a fact pointed out to Council at the January 15, workshop. The plan is, however, based on sound methodology and represents the best planning which could be accommodated, given the time line available for preparation. In concluding this report, Mr. Christofferson noted that it would be appropriate to reemphasize a point that goes to the heart of the final challenges that lie ahead. Meeting all of the City's financial needs will not be easy, and no one should believe that it will be. It will require the very best teamwork between Council and staff to budget and manage for the optimum effect. Mayor Buffum stated that Ward Gandy submitted a letter to Council dated February 26, 1991, requesting another presentation tonight. Ward Gandy, 448 Redcliff Drive, submitted a letter to Council dated March 1, 1991, which is incorporated herein by reference. Mr. Gandy states that the pertinent section of Proposition 13 has nothing to do with the property tax relief section of Proposition 13. He conveyed that his report never stated that the City was bankrupt; only that certain funds with credit balances were insolvent, and the fund that concerned him the most is the general fund. Mr. Gandy stated that Council must deal with financial issues in this budget session. He asked if Council decides to proceed with long-term financing of over $50 million, what method of financing is Council going to use and is the public going to be given an opportunity to vote upon it. Council Member Moss stated that he has worked with the City Manager, and he has a great amount of respect for him. Council Member Moss indicated that he has a business background and has checked with both the Director of Finance and City Treasurer to find out how projected income related to budgeted revenue, and it has always been positive. Council Member Moss stated that Council has appropriated little more than was in the original budget, and the fiscal year should end with a stronger surplus than anticipated. The City is in very strong condition financially. He noted that, to make a point, Mr. Gandy picked the lowest monthly cash balance of the general fund, and it is quite apparent that the balance varies from month to month. Noting that staff has spent a considerable amount of time working on this issue, he suggested that staff now target the budget and that will be the final answer to this debate. Staff should not be answering any more allegations. Council Member Arness stated that he has worked with City Manager Christofferson as both an employee and Council Member. He said it is almost impossible to believe that the City Manager has the freedom of fabrication, and he is absolutely positive that the information staff gives to Council is the very best that staff can give. Council Member Arness commented that municipal funding, with its wide range of cost centers and distinctive language, is not easy to follow or understand. In his years of experience as an employee and Council Member, the City has never been insolvent, and this Council will never let the City get in that position. Council Member Arness said the energy expended to answer Mr. Gandy's questions was not necessarily bad, and it focuses on some of the things that Council is touching on. Council has never thought that funding these high cost items was an easy question. It is a very difficult question, and Council is looking for a way to fund a frugal, not gold plated, City Hall project. When the budget is prepared, Council will be able to point out the fiscal condition of the City. It is in good shape. The City Manager has conveyed to Council that the City is in a "lean" position, and he has not tried to pretend that we are rolling in fat. The City is closely financed, and Council and staff are doing a fine job. Council Member Dahl conveyed that he is very impressed by the City Manager's report, and he complimented City Manager Christofferson and Director of 17 3/5/91 Finance Downing. Council Member Dahl expressed hope that the City Manager's report will put to rest the conspiracy theories. Mr. Gandy's intentions were well intended at first, but after the theory was created, Mr. Gandy tried to prove the theory and it became an obsession. To spend so much time on negative energy is unhealthy for the individual and the community--it is not productive, it is destructive. In the process, a lot of other very innocent, well meaning, people got drawn into the negative energy. Council Member Dahl stated that all of this could have been prevented by trying to be constructive and working together. He expressed hope that a lesson will be learned from this, and the community can move forward to better things. Council Member Dahl conveyed that Mr. Christofferson is well respected by his colleagues and peers, he is Vice President of the International City Manager Association, and Chairman of the Ethics Committee. He added that he does not always agree with the City Manager, but Council did not hire him to be a "yes" man. Council hired him for his competency and his intelligence. He said he has full confidence in the City Manager--he and his associates are doing a great job. Mr. Christofferson is following through and administering policies that Council created. Council Member Fulton said he has sat through many budget sessions with many different managers, and he has never had any qualms or misgivings about the way Mr. Christofferson has handled these questions and the budget itself. There has never been a feeling of distrust, and Council participates and is knowledgeable about what is going on. Council is not just handed something to sign--Council makes policy. He is confident that the City is not in dire financial straights, and, for that matter, the City is much better off than either the County or State. The issues were brought to Council's attention, and Council appreciates that. However, the manner in which those issues were brought to Council was not how he would have liked it. He hoped the City Manager's report would fill Mr. Gandy's requirements and show him that we are honest and making a real effort to make this budget work for the City. Mayor Buffum noted that as Mayor, she provides some overview, and Council intends to look at the issues that have been raised. She said it is fortunate that we live in a country where people with reasonable intent can disagree. She said it was unfortunate that Mr. Gandy Ward chose to release his information to the press a week earlier than releasing it to the City Manager or Council. We need to go beyond who did what to whom, personalities, charges and counter charges and look at the issues that have been raised. Mayor Buffum noted that this Council is, in some ways, paying for the sins of past Councils who did not deal with some of these issues, and now this Council must deal with them at a time when revenues are strained and growth is burgeoning. There are Council subcommittees working all the time on projects. She opined that the methods used by City management for the past 15 or 20 years have not changed. Mr. Gandy brought to light that those methods need to be looked at and either reconfirmed or modified. Regarding the issue of interfund transfers, she opined that Council should know, and agree, with transfers, and Council should discus this matter further. Noting that Mr. Potter stated that the basis for information on developing the City's five-year plan is flawed, Mayor Buffum conveyed that this is the first attempt at a five-year plan, and this is the first Council to ask for one. However, she agreed with Mr. Potter that the worst years, average years, and best years during the last ten years should be used for the scenarios, rather than basing a weak, strong, or poor economy scenario on just recent years. She said staff can work with those figures. She said the implication that Council is not making active decisions is not fair. All Council Members put an inordinate amount of time into their work, as does the City Manager. She said the City Manager is responsive, and she supports her colleague's defense of his work ethics. Mayor Buffum stated that Council should also support Mr. Gandy's questioning--is Council asking all the questions? Council will look at fiscal conditions, transfers, and fund balances. She added that the City Manager did an excellent job presenting what happens to fund balances through the life span of a year and the ebb and flow of dollars received. Mayor Buffum said this Council was elected to take prudent risks, and the blame, or the praise, belongs with Council when those decisions are made. She commended Mr. Gandy for bringing these red flags to Council's attention; however, she did not commend him for the manner in which he did it. She also 18 3/5/91 commended the City Manager for taking it like a gentlemen and coming back with an extremely thorough point by point response. Mayor Buffum said this Council intends to have further dialogue and get back to the public with its general position after budget sessions. RECESS At the hour of 9:40 p.m., Mayor Buffum recessed the meeting. At the hour of 9:50 p.m., Mayor Buffum reconvened the meeting. ORAL COMMUNICATIONS (B-080-600-950) Gary Anthis, 1890 Manchester Drive, thanked Council for its continued support of the Urban Design Awards program. Mr. Anthis said it is nice to hear developers from out of town say how easy it is to deal with this community and how well received they are. Noting that the Urban Design Awards program is one of the events that brings the development community and staff together, he expressed hope that Council will continue the program and expand it. Mr. Anthis said there are some areas that need improvement, but it is basically on the right track. He pointed out that the awards program motivates developers to strive for better projects. Mayor Buffum conveyed that a debt of thanks is owed to Senior Planner Jim King for his contribution to the Urban Design Awards program. LAND AND CONSERVATION FUND - Grant Application (G-100-170) Planning and Community Development Director Perry suggested that the City submit a grant application to the Land and Water Conservation Fund Grant Program. This is a matching grant program; and under the program, the City will pay for 50% of the total project and the Fund pays the other 50%. Mr. Perry recommended that a Sacramento River Trail widening project be submitted to the grant program. MOTION: Made by Council Member Moss, seconded by Council Member Arness, to submit a grant application to the 1990/91 Land and Water Conservation Fund Grant Program for Sacramento River Trail widening. The Vote: Unanimous Ayes NONPROFIT OFFICE PARK - Expansion of Third Building (C-070-100 & G-100) Planning and Community Development Director Perry recalled that Council approved the expansion of the third building in the Nonprofit Office Park, Diestelhorst Landing, and leasing the additional office to a grant resource center. Subsequent to that meeting, the McConnell Foundation confirmed the issuance of an additional grant in the amount of $100,000. It is the recommendation of staff to accept the grant and make the necessary arrangements to expand the third building at Diestelhorst Landing. MOTION: Made by Council Member Arness, seconded by Council Member Moss, to authorize the Mayor to accept the grant; direct that the third building in the nonprofit office park be expanded; amend the architect's contract to include the additional design work in an amount not to exceed $15,600 and authorize the Mayor to sign the agreement; direct the preparation of a resolution to establish a revised budget for the building, and prepare the necessary leases for the Red Cross, Big Brothers-Big Sisters, and the Grant Resource Center. The Vote: Unanimous Ayes POLICE AND ADMINISTRATION BUILDINGS/CORPORATION YARD - Cost Estimates (C-050-100-040 & C-050-025) Planning and Community Development Director Perry stated that requests for cost estimates for the Police and Administration Buildings and Corporation Yard were sent to six firms. Mr. Perry conveyed that all firms responded, and the quotes ranged widely in amount. He asked if Council would like to participate in the consultant selection process and what budget limit Council would like to establish. Council Member Arness questioned how an estimate can be established without schematics. 19 3/5/91 It was Mr. Perry's understanding that the cost estimate would accomplish two things--to establish a working budget for the projects so Council can deal with the public regarding comments about cost, and to develop an idea of compensation for the architect. He explained that there will also be two additional cost estimates--one at the completion of the schematic design and the other at the completion of construction documents. Mr. Perry explained that a consulting firm can provide a better cost estimate than he can, and staff will pick up some additional information. In response to Council Member Moss's question, Mr. Perry stated that the cost estimate will be an educated guess. The consultant will meet with the architect and Council about quality and square footage. Council Member Dahl conveyed that determining the "going" rate for new construction would be helpful. Mr. Perry explained that he can get those numbers for under $5,000. MOTION: Made by Council Member Dahl, seconded by Council Member Arness, to direct staff to negotiate a contract, in an amount up to $4,999.00, for consulting services for rough cost estimates for the proposed City Hall and the Corporation Yard. The Vote: Unanimous Ayes RESOLUTION - Rental Rehabilitation Grant Program Agreement; and RESOLUTION - Appropriating Funds for Additional Staff * (B-130-070 & G-100-145) Planning and Community Development Director Perry stated that the State Department of Housing and Community Development awarded the City of Redding a $400,000 grant for the 1990-91 program year. One of the primary conditions of the grant is that the funds be committed within certain deadlines. In order to meet the time frames and meet the established goals of other housing programs, an additional staff person is needed. There are sufficient funds available through the rental rehabilitation program and the Community Development Block Grant program to support this position through the 1991-92 fiscal year. He added that if staff is able to spend the allotted funds, HUD will allocate even more funds. It is the recommendation of staff to approve the grant agreement and add one additional staff person in Community Development. Council Member Arness said he is not opposed to accepting the money; however, he pointed out that the request for additional staff is just prior to budget study sessions, and Council expressed its desire to discuss any additional requests for staffing at those sessions. He is concerned about the general fund maintaining the position after grant money to fund the position is gone. Council Member Moss said it would be possible to asterisk those positions that are funded by grants, etc., to alert staff when that funding is gone. Mr. Perry explained that it is the City's goal to perform; and if there is adequate staff, it can be done. If the programs are no longer funded, Council can make the decision to either fire the employee or find another place for them. Mr. Perry added that this is only one of many housing programs, and there must be enough resources to service them all. Additional staff has not been added to this program for a long time. Council Member Dahl supported accepting the grant; however, he stated that staffing additional positions should be discussed in budget study sessions first. Housing Administrator Maurer emphasized that if the City can commit these grant funds, the City will receive more bonus performance funds. Part of the reason why these funds were received is because staff was able to commit its funds in a timely manner. Staff will be able to commit the $400,000 grant, but without additional personnel, it will happen over a longer period of time, and the City may become ineligible for more bonus points. Council Member Fulton emphasized that the money to fund this position will not come out of the general fund. Money for the community can be generated by taking advantage of this opportunity. 20 3/5/91 MOTION: Made by Council Member Fulton, seconded by Council Member Moss, that Resolution No. 91-100 be adopted, a resolution of the City Council of the City of Redding approving the Grant Agreement for the State Rental Rehabilitation Program. 21 3/5/91 Voting was as follows: Ayes: Council Members - Arness, Fulton, Moss, and Buffum Noes: Council Members - Dahl Absent: Council Members - None Resolution No. 91-100 is on file in the office of the City Clerk. MOTION: Made by Council Member Fulton, seconded by Council Member Moss, that Resolution No. 91-101 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 39th Amendment to the City Budget Resolution No. 90-362 establishing one (1) Housing Specialist I position in Community Development and appropriating $9,700 to fund the position. Voting was as follows: Ayes: Council Members - Arness, Fulton, Moss, and Buffum Noes: Council Members - Dahl Absent: Council Members - None Resolution No. 91-101 is on file in the office of the City Clerk. 1991 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (G-100-030-036) Planning and Community Development Director Perry submitted a list of the meeting dates for the 1991 Community Development Block Grant (CDBG) Program. Noting that this is the second year of a two-year program, he explained that Council approved projects to be funded during the second year with an estimated budget of $402,000. The Department of Housing and Urban Development notified staff that the grant award for 1991-92 will be $453,000; therefore, additional projects may be funded. This was an information item, and no action was required. COUNCIL SUBCOMMITTEES (C-050-100-040 & C-050-025) Planning and Community Development Director Perry noted that two City Council subcommittees were selected for the Civic Center and the Corporation Yard. He conveyed that staff was not clear if the subcommittee for the Civic Center was for both the Administration Building and Police Building. Noting that Mayor Buffum and Council Member Moss are serving on the subcommittee for the City Hall, Mayor Buffum recommended that Council Members Fulton and Moss serve on the subcommittee for the Police Building. MOTION: Made by Council Member Dahl, seconded by Council Member Arness, to ratify the appointment of Council Members Fulton and Moss to serve on the subcommittee for the Police Building. The Vote: Unanimous Ayes AMENDMENT TO TENTATIVE SUBDIVISION MAP S-36-90 - Spring Valley Subdivision, by Jaxon Baker (S-100-705-800) Council was advised that at its meeting of February 26, 1991, the Planning Commission granted permission to amend Tentative Subdivision Map S-36-90 to allow one additional lot. At its meeting of January 22, 1991, the Commission originally approved the subdivision of 60 acres into 88 single-family lots, located on the east side of Churn Creek and north of the Quail Ridge Subdivision. A map of the area and a copy of the conditions of approval were submitted to Council. This was an information item. TRAFFIC IMPACT FEE STATUS (T-080-400) Public Works Director Galusha recalled that the City began collecting the traffic impact fee on September 17, 1990, at a level of 45% of what staff recommended. The fee was effective for six months; thus, the review period is over on March 17, 1991. Mr. Galusha explained that the consultant, DKS Associates, who is preparing the street master plan and traffic model has revised his schedule for completion from February 1991 to May 1991 due to the expanded scope of the study. Therefore, staff does not have the benefit of the study with which to review the traffic impact fee prior to the ending date of March 17. 22 3/5/91 Mr. Galusha stated that the projects to be funded from this fiscal year's traffic impact fees total approximately $800,000. This revised figure is a result of moving the Shasta View overcrossing up one year. The City is required to put in signals as a result of that project because the intersection will be closed for one year while the overpass is being built. Staff expects to collect $900,000 during the remainder of the fiscal year. Mr. Galusha conveyed that staff is working with the Traffic Impact Task Force to study the economic impacts of the traffic impact fee. The County is also interested in participating in this program, and staff will be putting a program together. Mr. Galusha suggested that Council continue the interim fee at the 45% rate until the traffic model and street master plan are complete and a determination is made by Council on the final level of fee to be imposed. Council Member Dahl supported the extension request. He asked if there is a relationship between the annexation requests being held up by the County and the amount of traffic impact fees being generated. Mr. Perry responded yes, especially if the County does not adopt a traffic impact fee. Council Member Dahl added that Council needs to resolve the property tax exchange agreement/annexation issues. He suggested that two Council Members meet with two representatives of the City of Anderson and the Board of Supervisors. Mayor Buffum agreed, and she noted that after the last joint meeting, she did not see any indication that the Board was going to implement a traffic impact fee. Mr. Galusha noted that Shasta County staff are working on the development of a traffic impact fee and showed interest in participating in the economic study with the Task Force. MOTION: Made by Council Member Fulton, seconded by Council Member Dahl, to maintain the traffic impact fee at the current 45% level. The Vote: Unanimous Ayes Mayor Buffum appointed Council Members Moss and Dahl to a subcommittee to meet with representatives of the Board of Supervisors and the Anderson City Council. She said she will write to the Board and Anderson City Council asking them to also appoint two members to discuss annexations and property tax exchange agreements. DROUGHT MANAGEMENT PLAN (W-030-075) Public Works Director Galusha reported that the State of California is in the fifth year of a drought and water conservation is a necessity. Mr. Galusha stated that the Bureau of Reclamation will cut the main Redding water contract by 25% and the Buckeye contract by 50%. Noting that Buckeye does not currently use all of its allocation, he clarified that cutting 50% of Buckeye's maximum contract allotment will allow a 665 acre cushion to accommodate growth. He added that Redding's short-fall will be made up by pumping groundwater. Based on the 1991 maximum delivery, plus the potential yield from groundwater wells, there will be approximately 3,500 acre feet available to accommodate growth or possible transfer to other water districts. Mr. Galusha reported that in response to the Governor's media call for all water providers to have a drought management plan, staff prepared a draft plan for Council's review and comments. The four stages of the draft plan were explained to Council. It is the recommendation of staff to set a public hearing on March 19, 1991, to consider public input on the proposed plan. After receiving Council's direction and public input, staff will submit a final plan for Council's approval on April 2, 1991. It is also recommended that Council authorize staff to confirm the amount of water that could be available for transfer and negotiate agreements with local water districts. These agreements will be brought back to Council for final approval. 23 3/5/91 Mayor Buffum asked if the Bureau will be more tolerant of Redding sharing its water with other districts and not penalize the City. Mr. Galusha said the Bureau has indicated that to the City. Council Member Arness suggested that each Council Member submit their questions to Mr. Galusha so he has time to digest them prior to the public hearing. MOTION: Made by Council Member Dahl, seconded by Council Member Moss, to authorize staff to confirm the amount of water that could be available for transfer and negotiate agreements with local water districts and bring back the agreements for Council approval; and set a public hearing for March 19, 1991, to consider public input on the proposed Drought Management Plan. The Vote: Unanimous Ayes ROUTINE COMMUNICATIONS Letter from Ward Gandy dated February 19, 1991 (A-050-060) Letter from Robert F. Rose dated February 17, 1991 (W-030-075) Letter from John Hargreaves dated February 20, 1991 (F-205) Press Release from Shasta Cascade Wonderland Association (B-130-030-700) Alcoholic Beverage License Applications (A-110-140) Corner Store (Saeed & Sharon Hedayattzadeh) 6271 Eastside Road ADJOURNMENT There being no further business at the hour of 11:00 p.m., Mayor Buffum declared the meeting adjourned to 5:15 p.m., March 12, 1991, 760 Parkview Avenue, for a joint meeting with the Traffic and Parking Commission. APPROVED: __________________________________________ Mayor ATTEST: ____________________________________ City Clerk