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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1992-03-03 City Council, Regular Meeting Council Chambers Redding, California March 3, 1992 7:06 p.m. The Pledge of Allegiance to the Flag was led by City Attorney Hays. The Invocation was offered by Tom Woods, Station Manager of KVIP Radio. The meeting was called to order by Vice Mayor Moss with the following Council Members present: Arness, Carter, Fulton, and Moss. Mayor Dahl was absent. Also present were City Manager Christofferson, Assistant City Manager McMurry, City Attorney Hays, Director of Public Works Galusha, Director of Electric Utility Lindley, Director of Planning and Community Development Perry, Electric Utility Resources Manager Coleman, Assistant City Attorney Calkins, Director of Finance Downing, Principal Planner Keaney, Director of General Services Masingale, Director of Recreation and Parks Riley, Housing Manager Maurer, Senior Planner King, Associate Planner Morgon, Recreation Superintendent Sherer, Budget Services Officer Starman, Route Supervisor Roach, Assistant City Clerk Moscatello, City Clerk Strohmayer, and Secretary to the City Council Rudolph. CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Minutes - Regular Meeting of February 18, 1992 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 16, check numbers 178941 through 179417 inclusive, in the amount of $3,414,073.58, be approved and paid, and Payroll Register No. 17, check numbers 332635 through 333550 inclusive, in the amount of $1,086,683.29, for the period February 2, 1992, through February 15, 1992, be approved. TOTAL: $4,500,756.87 Resolution - Amending Miscellaneous Employee Benefits Resolution re Jury/Witness Fees (P-100-050-100) It is the recommendation of the Finance Director that Resolution No. 92-79 be adopted, a resolution of the City Council of the City of Redding (1) Rescinding Resolution No. 91-392 effective midnight, February 29, 1992, and (2) Establishing new Miscellaneous Employee Benefit Policies for unrepresented employees not covered by a Memorandum of Understanding to require all employees to submit to the City Treasurer any jury fee, witness fee, or other such compensation, effective March 1, 1992. Bid Schedule No. 2535 - Computer Equipment Purchases (B-050-100) It is the recommendation of the Finance Director that Council acknowledge Computerland of Redding's refusal to comply with the terms of the contract to deliver the required computer equipment pursuant to Bid Schedule No. 2535 and rescind its previous award of contract. It is further recommended that Bid Schedule No. 2535, computer equipment purchases, be awarded to the next low bidder, Micro-Age, for a total purchase price of $12,537.53. Resolution - Establishing Environmental Review Fees (F-205-600 & A-050-250) It is the recommendation of the Planning and Community Development Director that Resolution No. 92-80 be adopted, a resolution of the City Council of the City of Redding amending its Schedule of Fees and Service Charges to include an Environmental Assessment and Negative Declaration fee equal to 20 percent of the permit fee. 93 03/03/92 Set Public Hearing - re Rezoning Application RZ-4-92, by the City of Redding (Woodcrest, Somerset Estates, Sunwood Homes, and Oak Creek) (L-010-230 & S-100- ) It is the recommendation of the Planning and Community Development Director that a public hearing be set for 7:00 p.m., April 7, 1992, to consider Rezoning Application RZ-4-92, a request to rezone property to "R-1" Single Family Residential District. Set Public Hearing - re Rezoning Application RZ-6-92, by Enterprise School District (795 Hartnell Avenue-Rother School) (L-010-230) It is the recommendation of the Planning and Community Development Director that a public hearing be set for 7:00 p.m., March 17, 1992, to consider Rezoning Application RZ-6-92, a request to rezone property to "U" Unclassified District. Set Public Hearing - re Rezoning Application RZ-7-92, by TRIOND (Victor Avenue, bordered to west by Roberts Court and to south by Hartnell Avenue) (L-010-230) It is the recommendation of the Planning and Community Development Director that a public hearing be set for 7:00 p.m., March 17, 1992, to consider Rezoning Application RZ-7-92, a request to rezone property to "U" Unclassified District. Set Public Hearing - re Annexation Conducting Authority (A-150- ) It is the recommendation of the Planning and Community Development Director that a public hearing be set for 7:00 p.m., April 7, 1992, to consider the following annexations: (1) Annexation 88-2, Oregon Gulch/Texas Springs Area; (2) Annexation 90-14, Fairway Oaks Mobile Home Estates; and (3) Annexation 90-18, Power Line Road Area. Resolution - Ordering Boundary Change, Annexation 91-5, Rhonda Lyn Lane, Detachment (A-150-245 & T-010-700) It is the recommendation of the Planning and Community Development Director that Resolution No. 92-81 be adopted, a resolution of the City Council of the City of Redding ordering territory designated as "Annexation 91-5, Rhonda Lyn Lane Detachment" annexed to County service area No. 1 - Fire Protection, and County Service Area No. 15 - Street Lighting. Resolution - Property Tax Exchange Agreement re Annexation 91-7, Clear Creek/Westside Road Area (T-010-650 & A-150-247) It is the recommendation of the Planning and Community Development Director that Resolution No. 92-82 be adopted, a resolution of the City Council of the City of Redding approving a resolution involving property tax transfers between the County of Shasta and the City of Redding for the City of Redding Reorganization No. 91-7 (Clear Creek/Westside Road Area). Resolution - Supplemental Appropriation for Annexation Fees * (B-130-070 & A-150) It is the recommendation of the Planning and Community Development Director that Resolution No. 92-83 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 60th Amendment to City Budget Resolution No. 91-253 appropriating $9,100.00 for annexation fees. Resolution - re Lease Agreement with Redding Redevelopment Agency for Sacramento River Trail Property on Benton Ranch (A-070-075 & P-050-460-700 & C-070-010-020) It is the recommendation of the Planning and Community Development Director that Resolution No. 92-84 be adopted, a resolution of the City Council of the City of Redding approving the lease agreement between the City of Redding and the Redding Redevelopment Agency for the portion of the Sacramento River Trail located in the Benton Ranch, at a monthly rental charge of $1.00, for a term of 20 years commencing on the date the lease agreement is executed by the Agency, and authorizing the Vice-Mayor to sign same. Resolution - Northern California Power Pool Assessment (E-120) 94 03/03/92 It is the recommendation of the Electric Utility Director that Resolution No. 92-85 be adopted, a resolution of the City Council of the City of Redding approving the City of Redding's continued participation in the Northern California Power 95 03/03/92 Pool, of which the City of Redding is a member, and authorizing payment of the City's share of the NCPP 1991-92 budget in the amount of $25,000.00. Funds for this expense are included in the Electric Department's 1991-92 budget, 4807-45. Award of Bid - Bid Schedule No. 2606, Single Phase Pad Type Distribution Transformers (B-050-100) It is the recommendation of the Electric Utility Director that Bid Schedule No. 2606, single phase pad type distribution transformers, be awarded to the evaluated low bidder, Westinghouse Electric Supply Company, in the amount of $410,553.00. Funds for this purchase are included in the 1991-92 budget. Resolution - Change in Payee Under Existing Job Order 9368-21 from McDonough, Holland & Allen to DeCuir & Somach, Attorneys at Law (E-120-070-655) It is the recommendation of the Electric Utility Director that Resolution No. 92-86 be adopted, a resolution of the City Council of the City of Redding authorizing the change in payee under existing Job Order No. 9368-21 from McDonough, Holland & Allen to DeCuir & Somach, Attorneys at Law. Resolution - re California Office of Traffic Safety (OTS) Grant * (B-130-070 & G-100-170-700) It is the recommendation of the Police Chief that Resolution No. 92-87 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 64th amendment to City Budget Resolution No. 91-253 authorizing receipt of $12,160.00 from the State Office of Traffic Safety and appropriating a like amount for operating materials and supplies. Resolution - re Capital Project Program at Redding Municipal Airport * (B-130-070 & G-100-070-095 & G-100-170-200 & A-090-100) It is the recommendation of the Airports Director that Resolution No. 92-88 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 61st amendment to City Budget Resolution No. 91-253 authorizing receipt of $329,200.00 from the Federal Aviation Administration and the State of California and appropriating $329,200.00 for airport related projects. Award of Bid - Bid Schedule No. 2595, Elevator Maintenance (B-050-100 & C-050) It is the recommendation of the General Services Director that Bid Schedule No. 2595, elevator maintenance, be awarded to the low bidder, U. S. Elevator, in the amount of $580.00 per month, with service rates of $116.50 per hour for regular, $116.50 per hour for overtime, and $207 per hour for Sunday or holiday, non-contracted work, for the period of May 1, 1992 through April 30, 1995, with two one year optional renewals. Funds for elevator maintenance are included in the 1991-92 budget. Set Public Hearing - Application for a Limousine Owner's Permit from Jennifer Borda, dba Champagne Limousine (T-100-150) It is the recommendation of the City Clerk that a public hearing be set for 7:00 p.m., March 17, 1992, to consider an Application for a Limousine Owners Permit by Jennifer Borda, dba Champagne Limousine. Request to Sell Alcohol - Northern Valley Catholic Social Service (A-110-100) It is the recommendation of the City Clerk that Council grant the Northern Valley Catholic Social Service permission to sell alcoholic beverages at the Senior Citizen's Hall on July 11, 1992, from 6:00 p.m. to midnight, in conjunction with its Monte Carlo Dinner/Dance/Auction. Resolution - Proclaiming March 9, 1992, as Community Tree Planting Day, and March 7-14, 1992, as Arbor Week (A-050-060-600 & A-050-200-075) It is the recommendation of the Recreation and Parks Director that Resolution No. 92-89 be adopted, a resolution of the City Council of the City of Redding declaring March 9, 1992, as Community Tree Planting Day, otherwise known as Arbor Day; and March 7 through 14, 1992, as Arbor Week. 96 03/03/92 Bid Schedule No. 2578 - Martin Luther King Memorial Park Lighting (B-050-100) It is the recommendation of the Recreation and Parks Director that all bids regarding Bid Schedule No. 2578, Martin Luther King Memorial Park lighting, be rejected and the project re-advertised with contract documents containing the federal requirements. Acceptance of Final Map - Blossom Park Subdivision, Unit 3 (North of Highway 299E, east of Twin View Boulevard, and west of Churn Creek Road) (S-100-044) It is the recommendation of the Public Works Director that the Final Map for Blossom Park Subdivision, Unit 3, developed by Jay Meyer, be approved, the Mayor be authorized to sign the Subdivision Agreement, and the City Clerk file the map with the Shasta County Recorder. Award of Bid - Bid Schedule No. 2609, Redding Mall Piping Improvement Project (B-050-020 & W-030-725) It is the recommendation of the Public Works Director that Bid Schedule No. 2609 (Job No. 9031), Redding Mall piping improvement project, be awarded to the low bidder, Bobby Martin, in the amount of $67,355.00, an additional $12,373.00 be approved to cover the cost of engineering and inspection fees, and $12,372.00 be approved to cover the cost of contract change orders, for a total of $92,100.00. Funds in the amount of $92,100.00 are budgeted for this project. Notice of Completion - Bid Schedule No. 2554, Placement of Pavement Markers on Various Street (B-050-020 & S-070-200) It is the recommendation of the Public Works Director that Bid Schedule No. 2554 (Job No. 9521-92), placement of pavement markers on various streets, awarded to Chrisp Company, be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $47,823.97. Resolution - Authorizing Purchase of Street Name Hardware from Hawkins- Hawkins, Inc. (B-050-100 & S-070-200) It is the recommendation of the Public Works Director that Resolution No. 92- 90 be adopted, a resolution of the City Council of the City of Redding authorizing the purchase of street name-sign hardware from Hawkins-Hawkins, Inc., not to exceed $12,500.00, pursuant to Redding Municipal Code Section 4.20.120(H)(2), and authorizing the City Manager to sign the necessary documentation. Funds for this purchase are available in Account Number 514- 00-2513. Resolution - Releasing Abatement Proceedings at 1743 Willis Street, previously owned by Paul R. Jolly and Audrey V. Jolly (now owned by Jay J. Harris and Marilyn E. Harris) (A-030-070) It is the recommendation of the City Attorney that Resolution No. 92-91 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 1743 Willis Street, previously owned by Paul R. Jolly and Audrey V. Jolly (now owned by Jay J. Harris and Marilyn E. Harris. MOTION: Made by Council Member Arness, 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, Carter, Fulton, and Moss Noes: Council Members - None Absent: Council Members - Dahl Resolution Nos. 92-79, 92-80, 92-81, 92-82, 92-83, 92-84, 92-85, 92-86, 92-87, 92-88, 92-89, 92-90 and 92-91 are on file in the office of the City Clerk. PUBLIC HEARING - re General Plan Amendment GPA-13-91 and Rezoning Application RZ-10-91, by B & L Development (3405 Glenwood Drive) (G-030-010 & L-010-230) 97 03/03/92 The hour of 7:00 p.m. having arrived, Vice Mayor Moss opened the public hearing regarding General Plan Amendment GPA-13-91 and Rezoning Application RZ-10-91. 98 03/03/92 The following documents are on file in the office of the City Clerk. Affidavit of Posting - Continued Public Hearing Planning Commission recommendation dated March 3, 1992 City Clerk Strohmayer advised that no protests were received. Planning and Community Development Director Perry recalled that the public hearing regarding General Plan Amendment GPA-13-91 and Rezoning Application RZ-10-91 was continued to allow an environmental impact determination to be conducted. At its February 5, 1992 meeting, the Board of Administrative Review authorized the preparation of a Negative Declaration for the projects. Mr. Perry stated that the Planning Commission recommended approval of a request by B & L Development to rezone property located at 3405 Glenwood Drive from "R1-B20" Single Family Residential District and "RM-6" Multiple Family Residential District to "R2-B10" Duplex Residential District and "RM-6" Multiple Family Residential District. The Commission determined that the rezoning request did not require a General Plan amendment to accommodate the development proposed by the applicants which involves the creation of eight duplex residential lots and two large multiple family lots containing three units on one and five units on the other. Both the existing General Plan and recommended zoning permit a maximum of 24 units on the 4.78 acres. The Commission, therefore, recommended that their prior decision to amend the General Plan be rescinded. It is the recommendation of both the Planning Commission and staff that Council approve the rezoning of property located at 3405 Glenwood Drive to "R2-B10" Duplex Residential District and "RM-6" Multiple Family Residential District, terminate the processing of GPA-13-91, direct staff to prepare an ordinance to implement the zone change, and ratify the Negative Declaration. Betty Anderson, 3185 Pine Haven Court, stated that if the proposed high density zoning affects her property, she is not in favor of it. Mr. Perry indicated that the Planning Commission's action was to deny the General Plan amendment which would have increased the property's density from 24 units to 28 units. In response to Council Member Arness, Mr. Perry indicated that Ms. Anderson's property is zoned two units per acre, with the upper portion being Greenway. MOTION: Made by Council Member Arness, seconded by Council Member Carter, that the public hearing be closed. The Vote: Unanimous Ayes MOTION: Made by Council Member Arness, seconded by Council Member Carter, that Council make the following findings regarding Rezoning Application RZ-10- 91: 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 and February 5, 1992. The Vote: Unanimous Ayes MOTION: Made by Council Member Arness, seconded by Council Member Carter, to approve the rezoning of property located at 3405 Glenwood Drive to "R2-B10" Duplex Residential District and "RM-6" Multiple Family Residential District, terminate the processing of General Plan Amendment GPA-13-91, and direct staff to prepare an ordinance to implement the zone change. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Moss Noes: Council Members - None Absent: Council Members - Dahl PUBLIC HEARING - re Rezoning Application RZ-2-92, by the City of Redding (Parkside Manor Subdivision, Unit 3) (L-010-230 & S-100-580) The hour of 7:00 p.m. having arrived, Vice Mayor Moss opened the public hearing regarding Rezoning Application RZ-2-92. 99 03/03/92 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 24, 1992 City Clerk Strohmayer advised that no protests were received. Planning and Community Development Director Perry related that the Planning Commission at its February 11, 1992, meeting recommended approval of the rezoning of property located within the Parkside Manor Subdivision, Unit 3, from "U" Unclassified District to "R-1" Single Family Residential District. Mr. Perry stated that the purpose of the proposed rezoning is to establish consistency with the City's General Plan designation and to provide more complete land-use information to potential buyers and residents. It is the recommendation of the Planning Commission and staff that Council approve the rezoning of the property to "R-1" Single Family Residential District, recertify the Negative Declaration and offer the ordinance for first reading. Vice Mayor Moss determined that there was no one present who wished to speak on this matter. MOTION: Made by Council Member Carter, seconded by Council Member Fulton, that the public hearing be closed. The Vote: Unanimous Ayes MOTION: Made by Council Member Arness, seconded by Council Member Fulton, that Council make the following findings regarding Parkside Manor, Unit 3: 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 recertify the Negative Declaration authorized by the Board of Administrative Review on February 29, 1984. The Vote: Unanimous Ayes Council Member Fulton offered Ordinance 1997 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 (RZ-02-92). PUBLIC HEARING - re Rezoning Application RZ-3-92, by the City of Redding (Woodhaven Homes Subdivision, Units 10 and 11) (L-010-230 & S-100-808) The hour of 7:00 p.m. having arrived, Vice Mayor Moss opened the public hearing regarding RZ-3-92. 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 24, 1992 City Clerk Strohmayer advised that no protests were received. Planning and Community Development Director Perry related that the Planning Commission at its February 11, 1992, meeting recommended approval of the rezoning of property located within a portion of Woodhaven Homes Subdivision, Units 10 and 11, from "U" Unclassified District to "R-1" Single Family Residential District. Mr. Perry stated that the purpose of the proposed rezoning is to establish consistency with the City's General Plan designation and to provide more complete land-use information to potential buyers and residents. It is the recommendation of the Planning Commission and staff that Council approve the rezoning of the property to "R-1" Single Family Residential District, recertify the Negative Declarations and offer the ordinance for first reading. Vice Mayor Moss determined that there was no one present who wished to speak on this matter. 100 03/03/92 MOTION: Made by Council Member Carter, seconded by Council Member Fulton, that the public hearing be closed. The Vote: Unanimous Ayes MOTION: Made by Council Member Fulton, seconded by Council Member Arness, that Council make the following findings regarding Woodhaven Homes, Block Y: 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 recertify the Negative Declaration authorized by the Board of Administrative Review on October 23, 1985. The Vote: Unanimous Ayes MOTION: Made by Council Member Fulton, seconded by Council Member Arness, that Council make the following findings regarding Woodhaven Homes Subdivision: 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 recertify the Negative Declaration authorized by the Board of Administrative Review on July 6, 1983. The Vote: Unanimous Ayes Council Member Fulton offered Ordinance 1998 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 (RZ-03-92). PUBLIC HEARING - re General Plan Amendment GPA-21-91 by Ted and Judy Young (1395 and 1411 Branstetter Lane) (G-030-010) The hour of 7:00 p.m. having arrived, Vice Mayor Moss opened the public hearing regarding General Plan Amendment GPA-21-91. 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 March 3, 1992 City Clerk Strohmayer advised that no protests were received. Planning and Community Development Director Perry related that the Planning Commission at its February 11, 1992, meeting recommended approval of a request to reclassify property located at 1395 and 1411 Branstetter Lane from "Residential, 2.0 units per acre" and "Service Commercial" to "Residential, 9.0 units per acre" and "Greenway." Mr. Perry stated that the applicant's request would result in a considerable reduction in the potential traffic generation from the site. Under the requested General Plan, 47 multiple family units could be built and would generate approximately 329 vehicle trip ends per day. Under the existing General Plan of "Residential, 2.0 units per acre" and "Service Commercial", approximately 1,700 vehicle trip ends per day could be generated from the property if developed with a mix of light industrial, warehouse, and automotive repair facilities--five times the number of trips under the requested General Plan. It is the recommendation of the Planning Commission and staff that Council approve the reclassification of property to "Residential, 9.0 units per acre" and "Greenway", direct staff to prepare a resolution to amend the General Plan to coincide with other General Plan amendments, approve the changes in concept and ratify the Negative Declaration. Charles Ferrell, 970 Branstetter, stated that residents of the area believe that the reclassification of the subject property to nine units per acre will put an additional strain on an already overloaded Branstetter Lane. He opined that nine units per acre is too high a density and residents in the area do not want to see commercial businesses driven from the area. 101 03/03/92 Leone Webb stated that she agrees with Mr. Ferrell's comments. She indicated that she lives on a water line which is not adequate; and if additional houses are built in the area, she will probably receive no water in the summer. She 102 03/03/92 related that she currently only receives approximately ten pounds of water pressure in the summer. She explained that the City would need to either increase the size of the water line or put in an additional water tank on the top of the hill. MOTION: Made by Council Member Arness, seconded by Council Member Fulton, that the public hearing be closed. The Vote: Unanimous Ayes Public Works Director Galusha related that Branstetter has a long dead-end eight-inch water line. He explained that one of the long term issues surrounding the Texas Springs annexation is to strengthen the water system. He stated that staff can consider the possibility of tying it back into Branstetter; however, he indicated he is not sure that the number of units this General Plan amendment allows would have a substantial impact on Ms. Webb's water pressure. He said that improvements made to the water system further south should benefit Branstetter. In response to Council Member Fulton, Mr. Perry related that the next lowest density would be six units per acre and that the Planning Commission viewed nine units per acre as a step in the right direction. Vice Mayor Moss stated that nine units per acre is on the lower density side of the multiple family designation and favored its approval. In response to Council Member Arness, Mr. Perry stated that the City has the advantage of a use permit if development of the property consists of a building of more than eight units or involves a subdivision. He indicated that the area does not have the advantage of high volume streets; therefore, only has commercial activities, such as small assembly business, contractor yards and equipment yards, which do not require thoroughfares. MOTION: Made by Council Member Arness, seconded by Council Member Fulton, that Council make the following findings regarding GPA-21-91: 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 15, 1992. The Vote: Unanimous Ayes MOTION: Made by Council Member Arness, seconded by Council Member Fulton, that the reclassification of property at 1395 and 1411 Branstetter Lane to "Residential, 9.0 units per acre" and "Greenway" be approved in concept and staff directed to prepare a resolution amending the General Plan to coincide with other General Plan amendments. The Vote: Unanimous Ayes ORDINANCE NO. 1991 - Rezoning Application RZ-1-92, by the City of Redding (Montebello Park Subdivision) (L-010-230 & S-100-490) MOTION: Made by Council Member Fulton, seconded by Council Member Arness, that the full reading of Ordinance No. 1991 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. 1991 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- 1-92). Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Moss Noes: Council Members - None Absent: Council Members - Dahl Ordinance No. 1991 is on file in the office of the City Clerk. ORDINANCE NO. 1992 - Rezoning Application RZ-16-91, by the City of Redding (Ridgeview Subdivisions, Units 4, 5, and 6) (L-010-230 & S-100-640) MOTION: Made by Council Member Fulton, seconded by Council Member Arness, that the full reading of Ordinance No. 1992 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes 103 03/03/92 104 03/03/92 MOTION: Made by Council Member Arness, seconded by Council Member Fulton, that Ordinance No. 1992 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- 16-91). Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Moss Noes: Council Members - None Absent: Council Members - Dahl Ordinance No. 1992 is on file in the office of the City Clerk. ORDINANCE NO. 1993 - Rezoning Application RZ-17-91, by the City of Redding (Westside Estates and Placer Hills, Unit 3) (L-010-230 & S-100-788 & S-100-600) MOTION: Made by Council Member Fulton, seconded by Council Member Arness, that the full reading of Ordinance No. 1993 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Carter, seconded by Council Member Arness, that Ordinance No. 1993 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- 17-91). Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Moss Noes: Council Members - None Absent: Council Members - Dahl Ordinance No. 1993 is on file in the office of the City Clerk. ORDINANCE NO. 1994 - Rezoning Application RZ-15-91, by the City of Redding (Knollcrest and Stoneridge Estates) (L-010-230 & S-100-395 & S-100-707-710) MOTION: Made by Council Member Fulton, seconded by Council Member Arness, that the full reading of Ordinance No. 1994 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Carter, seconded by Council Member Fulton, that Ordinance No. 1994 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- 15-91). Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Moss Noes: Council Members - None Absent: Council Members - Dahl Ordinance No. 1994 is on file in the office of the City Clerk. ORDINANCE NO. 1995 - Off-Street Parking and Loading Regulations (L-010-500-050 & P-030-230) MOTION: Made by Council Member Fulton, seconded by Council Member Arness, that the full reading of Ordinance No. 1995 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. 1995 be adopted, an ordinance of the City Council of the City of Redding amending portions of Redding Municipal Code Chapter 18.62, Off-Street Parking and Loading Regulations. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Moss Noes: Council Members - None Absent: Council Members - Dahl Ordinance No. 1995 is on file in the office of the City Clerk. ORDINANCE NO. 1996 - Trash Container Enclosures (L-010-500-050 & A-050-250-030) 105 03/03/92 MOTION: Made by Council Member Fulton, seconded by Council Member Arness, that the full reading of Ordinance No. 1996 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes 106 03/03/92 MOTION: Made by Council Member Arness, seconded by Council Member Carter, that Ordinance No. 1996 be adopted, an ordinance of the City Council of the City of Redding amending Title 18, Zoning, of the Redding Municipal Code by adding Chapter 18.55: Trash Container Enclosures. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Moss Noes: Council Members - None Absent: Council Members - Dahl Ordinance No. 1996 is on file in the office of the City Clerk. BUREAU OF RECLAMATION'S WATER MANAGEMENT PLANS FOR 1992 (F-200-200-050 & W-030-450) City Manager Christofferson indicated that with the Bureau of Reclamation's recent announcement to not draw down Whiskeytown Lake, it is not necessary to act on this matter this evening. He stated that staff has also been coordinating with the Shasta County Board of Supervisors and the action it is taking against the Bureau of Reclamation. The Board of Supervisors would like the City to be a co-plaintiff in this action. More information will be available for Council at its March 17, 1992 meeting. In addition, Kelley Clark, Chair of the Shasta Group Sierra Club, phoned today withdrawing his request to address Council. LEGISLATIVE MATTERS (L-040-300 & L-040-070) City Manager Christofferson explained that the following bills are presently under consideration and indicated possible positions which Council may wish to take on each: (1) Support AB181 re municipal liability with respect to solid waste operations; (2) Oppose AB2067 re discipline of police officers; (3) Oppose AB2396, ACA37, SB177, and SB267 re reinstate special exemptions from sales tax; (4) Oppose AB2324 re term limits of city council members; (5) Oppose SB959 re surcharge on urban water retailers; (6) Support AB2418 re city compliance with provisions of Proposition 111 by permitting six-year averaging with respect to maintenance of effort; (7) Oppose AB388 and AB845 re Mandating at least 50 percent of all persons employed on public works projects be California residents; (8) Landfill regulations and associated liability coverage - Write letter to Waste Management Board expressing concern regarding proposed regulations which appear to discriminate against cities which operate one landfill; (9) Take no position at the present time on SB1711 re new restrictions on existing Redevelopment Agencies; (10) Oppose AB432 and support AB28x re cutbacks in Department of Alcoholic Beverage Control funding; and (11) H.R. 4058 re balance between economic and environmental priorities, specifically the Endangered Species Act and giving human beings the same consideration - Possibly support general concept, however, support of the entire bill is open to question. Council Member Arness related that he supports H.R. 4058 in principal, but would like to obtain additional information before taking a position, and concurs that something needs to be done to give people more recognition. Vice Mayor Moss stated that it is too premature to take a position on H.R. 4058. Council Member Carter said he philosophically supports H.R. 4058 but is willing to wait for additional information before taking a position. He related that regional councils and local governments should also have some discretionary authority in the implementation of the Endangered Species Act. Vice Mayor Moss indicated that the issue of compensation indicated in H.R. 4058 is something which needs to be further defined. Council Member Carter expressed a desire to have staff ascertain Congressman Herger's position on H.R. 4058 before Council takes a position on it. He also stated that he supports city council term limits; however, he does not support AB2324 due to the lifetime limitation provision. MOTION: Made by Council Member Fulton, seconded by Council Member Carter, that the recommended positions regarding legislative matters, with the exception of H.R. 4058, be approved as hereinabove recommended and direct staff to ascertain Congressman Herger's position on H.R. 4058 and report back to Council at a later date. The Vote: Unanimous Ayes 107 03/03/92 108 03/03/92 RESOLUTION - Further Appropriation Reductions in Response to Current Economic Conditions (B-130-070) Finance Director Downing recalled that Council at its February 18, 1992 meeting formally implemented a portion of the budget reductions, $1,984,430.00, and the resolution before Council would further reduce General Fund appropriations by $139,300.00, thereby bringing the total to $2,123,730.00, and other expenditures by $167,600.00. She indicated that additional resolutions will be presented to Council over the next several weeks to reduce General Fund appropriations by another $701,870.00, thereby reaching the mandated $2,825,600.00. It is the recommendation of staff that Council adopt the resolution reducing General Fund appropriations by an additional $139,300.00, and other expenditures by $167,600.00, for a total of $306,900.00. In response to Council Member Arness, Ms. Downing indicated that the Fixed Charge-Information Systems indicated that some of the reductions came from the department directly and other reductions represent monies budgeted for new computers. She stated that it is difficult to ascertain how much of the proposed Information Systems reduction is being postponed. Ms. Downing explained that the Recreation and Parks Department reductions indicated in the resolution will not affect any of the department's programs. MOTION: Made by Council Member Arness, seconded by Council Member Carter, that Resolution No. 92-92 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 63rd amendment to City Budget Resolution No. 91-253 adjusting appropriations, in the total amount of $306,900.00, in response to current economic conditions. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Moss Noes: Council Members - None Absent: Council Members - Dahl Resolution No. 92-92 is on file in the office of the City Clerk. RESOLUTION - Fire Hydrant Rental Fee (B-130-070 & F-205-600 & A-050-300-250) Finance Director Downing explained that under the City's existing utility rate structure, the Water Division charges the General Fund (via the Fire Department) a monthly fire hydrant rental fee of $5.00 for each public fire hydrant located within the City. The Water Division also charges private parties (e.g., apartment owners and businesses) such a fee. Ms. Downing stated that the fire hydrant rental fee provides a source of revenue to the Water Division to fund service-related activities associated with fire hydrants. According to the Water Division, each fire hydrant is serviced at least once per year, which includes greasing and oiling parts, checking caps, inspecting values and moving parts, replacing worn gaskets, etc. In addition, the Water Division paints the fire hydrants on a periodic basis and, when necessary, removes shrubs and bushes from around the fire hydrants. Ms. Downing explained that the Water Division currently receives $15,975.00 per month, $191,700.00 per year, from the General Fund in the form of fire hydrant rental fees. This amount increases each year as new fire hydrants are installed. According to the Water Division, it costs approximately $40,000.00 per year to service and maintain the City's public fire hydrants. Ms. Downing indicated at first glance, the General Fund appears to be overcharged; however, the Water Division believes that the direct costs associated with servicing and maintaining the fire hydrants only provide half of the picture. Fire hydrant rental fees are also intended to provide the Water Division with sufficient funds to replace worn out and damaged fire hydrants and can be viewed as a mechanism to reimburse the Water Division for the additional infrastructure costs associated with fire services (e.g., larger water lines and larger water storage tanks). She related that of 16 cities surveyed, only one city charges its fire department for fire hydrants. 109 03/03/92 It is the recommendation of both the Finance and Public Works Departments that the fire hydrant rental fees be retained; however, the monthly fee should be reduced to $2.75 per month. This lower fee would still generate approximately $114,000.00 in revenue per year for the Water Division, which would support the fire hydrant maintenance activities and provide enough revenue to replace worn out and damaged fire hydrants. She noted, however, that with the reduced rental fee, the Water Division will not be compensated for infrastructure improvements needed to maintain adequate fire services, e.g., larger water lines, and will be borne by the Water Division. Council Member Arness related that cities such as Chico have a private water system and probably recapture these funds. He indicated that Streets Division of Public Works pays the Electric Department approximately $1,000,000.00 a year for street lights. If the City were to take a $1,000,000.00 from Electric and transfer it to Public Works, a $1,000,000.00 would be saved. Ultimately, the user is paying the costs. Vice Mayor Moss stated that the City used to have a strong General Fund and could afford to use it to subsidize increasing utility fees. He indicated that in conversations with the City Manager, it appears that the $1,000,000.00 being paid to the Electric Department could realistically be cut in half by having the same services performed by other members of City staff. He said that the General Fund cannot afford to continue subsidizing water rates, and to some extent, electrical rates. He related that he prefers to have the $192,000.00 to remain in the General Fund, rather than serving to hold water rates down. Council Member Arness stated he has no problem increasing water rates, as long as the public knows it is associated with the fire hydrant rental fee being reduced or eliminated. MOTION: Made by Council Member Fulton, seconded by Council Member Carter, that Resolution No. 92-93 be adopted, a resolution of the City Council of the City of Redding, effective on the dates set forth below, (1) Rescinding Resolution No. 90-418 and (2) Establishing water utility rates for service to customers within the corporate limits of the City of Redding and the Buckeye service area, specifically a fire hydrant rental fee of $2.75, effective April 1, 1992. Voting was as follows: Ayes: Council Members - Carter and Fulton Noes: Council Members - Arness and Moss Absent: Council Members - Dahl Motion failed due to a lack of a majority vote. MOTION: Made by Council Member Fulton, seconded by Council Member Carter, that Resolution No. 92-93 be adopted, a resolution of the City Council of the City of Redding, effective on the dates set forth below, (1) Rescinding Resolution No. 90-418 and (2) Establishing water utility rates for service to customers within the corporate limits of the City of Redding and the Buckeye service area, specifically eliminating the fire hydrant rental fee, effective April 1, 1992. Voting was as follows: Ayes: Council Members - Carter, Fulton and Moss Noes: Council Members - Arness Absent: Council Members - Dahl Resolution No. 92-93 is on file in the office of the City Clerk. BUDGET REDUCTIONS - Recreation and Parks Department (B-130-070 & A-050-220) Finance Director Downing related that Council, at its January 21, 1992, meeting directed all General Fund departments to make an across-the-board four percent budget reduction, which amounted to a $94,488.00 budget reduction for the Recreation and Parks Department. Ms. Downing stated that in an effort to comply with the mandate, the Recreation and Parks Department identified a number of areas where potential savings are available. Most of the proposed reductions can be accomplished administratively; however, some of the following proposed cutbacks require consideration by Council: (1) Eliminate subsidies to local nonprofit sport 110 03/03/92 organizations (e.g., youth baseball and football); (2) Eliminate some teen and community trips; stop transporting children to swimming pools; eliminate summer concert series; (3) Restructure the Aquatic Program (close the Plunge in Caldwell Park); and (4) Do not publish the Summer Activity Guide. 111 03/03/92 Staff recognizes that the proposed reductions are sensitive; however, the City must reduce General Fund expenditures in order to avoid a potential deficit. It is, therefore, the recommendation of staff that Council endorse the budget reductions proposed by the Recreation and Parks Department. Council Member Fulton stated he does not favor making any budget reductions in the Recreation and Parks Department. He related that the proposed reductions are minuscule, in overall terms of the budget, and affect people which really need the recreational activity. MOTION: Made by Council Member Carter, seconded by Council Member Fulton, to direct staff to not require any budget reductions in the Recreation and Parks Department. The Vote: Unanimous Ayes Council Member Arness stated that he would find it very difficult to make reductions in the Recreation and Parks Department after voting to continue sponsoring special community events, such as parades. Council Member Carter opined that it is too early to make reductions in the Recreation and Parks Department. Vice Mayor Moss stated that staff has already acknowledged that some departments are not going to be able to reduce their budgets by the mandated amount. He said that in making the required reductions, he does not want to eliminate services to the public, particularly to the young people of the community. He indicated that it has taken a long time to develop these programs which depend heavily upon volunteer assistance and it would take many years to rebuild that momentum. RESOLUTION - Voluntary Furloughs (P-100-120 & B-130-070) Assistant City Manager McMurry related that during discussions regarding the concept of mandatory and voluntary furloughs of employees, a question was raised as to whether employees who are exempt from overtime provisions of the Fair Labor Standards Act (FLSA) and who, therefore, are considered to work for a monthly wage can take furloughs under the applicable provisions of FLSA without thereby becoming subject to the overtime provisions of the Act. Mr. McMurry indicated that following additional research, the City Attorney has opined that such furloughs are contemplated by the act for exempt employees, but only after the City Council indicates that these absences are due to a "budget required" situation. However, the Act also specifies that for any week in which an exempt employee takes a furlough for a day or more, that employee is not considered exempt for that week. Therefore, any time over eight hours in a day that the employee were to otherwise work during the week would be compensable at the rate of time and a half. It is the recommendation of staff that Council adopt a resolution which provides for voluntary furloughs as part of the City's 1991-92 budget reduction program. MOTION: Made by Council Member Arness, seconded by Council Member Carter, that Resolution No. 92-94 be adopted, a resolution of the City Council of the City of Redding authorizing a voluntary furlough program for employees as part of an overall budget-reduction plan for fiscal year 1991-1992. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Moss Noes: Council Members - None Absent: Council Members - Dahl Resolution No. 92-94 is on file in the office of the City Clerk. DEPARTMENT OF FISH AND GAME GRANT REQUEST (G-100-170 & S-020-230) Planning and Community Development Director Perry related that Region 1 of the Department of Fish and Game (DFG) has requested the support of the City for a grant application it has filed under the Environmental Enhancement and Mitigation Program, sponsored by the Department of Transportation. This program seeks to offset the loss in habitat which can result from the construction of Caltrans projects, such as road realignments, bridge expansions, and interchange construction. The project is intended to help 112 03/03/92 offset the loss of 248 acres of various habitat types which have occurred with the construction of seven Northern California Caltrans projects. Mr. Perry indicated that the grant request seeks $275,000.00 for the acquisition of 130 acres of property along Battle Creek in the vicinity of Coleman Fish Hatchery. The acquisition site includes 15 acres of wetlands, 8 acres of riparian habitat, and 40 acres of native oak grassland habitat. The remaining land is available for restoration and enhancement of wetland and riparian habitat. The DFG has already secured 296 acres adjacent to the site. He indicated that with destruction of 95 percent of the State's wetland and riparian resources, protection and enhancement is a very high priority. Mr. Perry explained that even though the proposed acquisition area is not within the corporate boundary of Redding, it would provide potentially significant benefits to developers within the City. DFG has indicated that contributions for the development of wetlands within the acquisition area can be used, in certain circumstances, to offset the loss of on-site wetlands that may occur with subdivisions or other developments in the City. This adds a measure of flexibility for the development community in project design and provides a mechanism to compensate for project-related impacts. It is the opinion of staff that support of the grant application is appropriate given the indirect benefit to development in Redding and does not commit the City to financial or other obligations nor will it create any new or controversial issues for the Council. It is the recommendation of staff that the Vice Mayor be authorized to send a letter in support of DFG's grant request. MOTION: Made by Council Member Arness, seconded by Council Member Carter, to direct staff to prepare a letter for the Vice Mayor's signature in support of the Department of Fish and Game's grant application under the Environmental Enhancement and Mitigation Program. The Vote: Unanimous Ayes COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (G-100-030-200) Housing Manager Maurer explained that as part of Title I of the National Affordable Housing Act of 1990 (NAHA), Congress legislated that local governments must have a Department of Housing and Urban Development (HUD) approved Comprehensive Housing Affordability Strategy (CHAS) to be eligible to apply for funding under certain HUD programs. A HUD-approved CHAS must be in place in order for the City to be eligible to apply for any new CDBG funds, for final approval of further allocations of Section 8 rental subsidies, as well as for HOME funds applied for through the State during 1992. The CHAS status also will affect any outside agencies applying directly for the program funding under both the McKinney Act and HOPE. Ms. Maurer recalled that last July, Council authorized the Community Development Advisory Committee to oversee the development of a CHAS for the Redding community. Following a public forum meeting on community housing needs held during September, 1991, the draft CHAS was development. As required by the Act, a sixty day public review period for the draft document was initiated on December 23, 1991 and concluded February 20, 1992. A public notice advertising the availability of the draft CHAS was placed in the Record Searchlight at the start of the review period. In addition, approximately fifty copies of the draft document were distributed to interested community housing and social service providers for review and comment. A public hearing was held by the Community Development Advisory Committee on January 29, 1992. Ms. Maurer indicated that at the public hearing, testimony was received from five organizations: Northern Valley Catholic Social Services, Shasta Housing Development Corporation, Shasta County Housing Authority, Stillwater Learning Program, and People of Progress; and one individual, Ken Murray. Written comments and recommendations have been received from four organizations: The Sierra Club, Shasta County Mental Health Advisory Board, Stillwater Learning Program, and Legal Services of Northern California, Inc.; and one individual, Ken Murray. Staff has considered these comments, and where feasible, has incorporated them into the CHAS. The CHAS is subject to an annual review process, and as new policies are implemented, future CHAS versions will reflect this ongoing policy refinement process. Ms. Maurer stated that the Community Development Advisory Committee voted unanimously to recommend adoption of the CHAS to the City Council. It is the 113 03/03/92 Committee's opinion that the CHAS substantially complies with the intent of the ACT, and provides the City and its residents with a realistic planning tool which takes into consideration current local housing conditions and needs, as well as existing funding constraints. It is the recommendation of staff that Council adopt the draft CHAS and submit it to HUD for final approval. MOTION: Made by Council Member Carter, seconded by Council Member Fulton, to adopt the draft Comprehensive Housing Affordability Strategy (CHAS) and forward it to the Department of Housing and Urban Development (HUD) for final approval. The Vote: Unanimous Ayes ALLIANCE OF REDDING MUSEUMS (ARM) - Use Permit Application UP-3-92 (Museum Project) (Turtle Bay West, east of the Redding Convention Center at 600 and 690 Auditorium Drive) (L-010-390 & C-070-250) Planning and Community Development Director Perry related that the Planning Commission at its February 25, 1992, meeting approved Use Permit UP-3-92 for Phase I of a museum complex planned for Turtle Bay West. On January 28, 1992, the Commission found the project consistent with the Redding General Plan, based on its temporary nature, and ordered the preparation of a negative declaration based on identified mitigation measures. The Phase I museum complex project, which consists of a combination of temporary and permanent uses, was approved subject to 16 conditions, as indicated in the Report to City Council dated February 26, 1992, incorporated herein by reference. Mr. Perry stated that Council action is not required relative to the use permit approval by the Planning Commission; however, staff feels Council should be aware of the permit and the following: (1) The lease between ARM and the City requires that a master plan for the museum complex be approved in writing prior to improvements on the site. While a conceptual master plan has not yet been approved, it has been given to Council and staff. The plan must be modified to recognize and address the potential for the future right-of-way needs for a new Auditorium Drive interchange. ARM has acknowledged the need to revise its master plan for permanent facilities; however, the City's only control at this point is to reserve the right-of-way through a use permit condition or buy the area out of the lease; and (2) The extent that the Phase I improvements would be impacted by the future alignment of the Auditorium Drive interchange has been evaluated by both City and Caltrans staff and are noted in a recent letter received from Caltrans dated February 25, 1992, incorporated herein by reference. The Auditorium Drive interchange improvements would not be anticipated to occur over the next ten years, therefore, the temporary facilities proposed in Phase I are not a significant concern to City staff or Caltrans. Condition 1 of UP-3-92 provides for a review after three years of use, which will allow the City to reassess the potential for the Phase I improvements to be in conflict with Caltrans' improvement design and construction schedule. It is the recommendation of staff that Council direct staff to prepare a letter for the Vice Mayor's signature authorizing Phase I development and stipulating that a revised master plan must be approved by January 1, 1992. While this approach conflicts with the actual wording in the lease, the lease does not specifically address temporary uses as proposed. The demonstration forest observation tower and amphitheater are permanent uses. MOTION: Made by Council Member Fulton, seconded by Council Member Arness, to direct staff to prepare a letter to the Alliance of Redding Museums (ARM), for the Vice Mayor's signature, authorizing Phase I development and stipulating that a revised master plan must be approved by January 1, 1993. The Vote: Unanimous Ayes ANNUAL GENERAL PLAN REPORT (G-030) Planning and Community Development Director Perry submitted the Annual General Plan Report adopted by the Planning Commission on February 25, 1992. The annual report reveals the status of the General Plan and progress in its implementation. This was an information item and no action was required. RESOLUTION - Issuance of Electric System Revenue Certificates of Participation, Series 1992A, for Upgrade of Redding Power Plant and Acquisition of Industrial Power Technology (IPT) Combustion Turbines 114 03/03/92 (D-050-250-005 & E-120-300-700) Electric Utility Director Lindley related that the anticipated modification of the Redding Power Plant (RPP), repayment to the Electric Utility 142 Fund of a loan for a portion of the down payment of RPP, and the purchase of a three- unit combustion turbine project to be constructed by Industrial Power Technology (IPT), will require a new Electric Utility debt issue (Series 1992A). As directed by Council, Electric Department staff is finalizing contract negotiations with IPT in accordance with the Letter of Intent (LOI), and is working with the City Finance Department, the City Attorney, Lehman Brothers (the underwriter), Brown & Wood (underwriter's counsel), and Orrick, Herrington & Sutcliffe (City's bond counsel) to develop the legal documents necessary for the joint RPP/IPT financing. Mr. Lindley stated that the Electric Department is also working with the independent engineering consulting firms of Black & Veatch (Engineer's Technical Report) and Henwood Energy Services (Engineer's Financial Certification) to finalize the technical and financial engineer's reports which are required for the financing and which were authorized by Council on January 21, 1992, by Resolutions 92-26 and 92-27, respectively. The Electric Department plans to present the Electric Utility Commission (EUC) and staff recommendations regarding the adoption of the resolutions to approve the IPT contract and to approve in final form the legal documents necessary to proceed with the financing. Mr. Lindley related that in order to expedite the financing and take advantage of attractive financing options, Council should consider approving the form and authorizing the circulation of the Preliminary Official Statement (POS), authorizing the procurement of a Policy of Bond Insurance, and certain other actions in connection with Electric System Revenue Certificates of Participation, Series 1992A, at the earliest possible date. Mr. Lindley explained that authorizing the circulation of the POS and the procurement of a Policy of Bond Insurance will not commit Council to either complete the financing or to commit to any expenditure not already approved with respect to RPP and IPT. This action has no associated out-of-pocket costs for the City since all associated costs are the responsibility of the underwriter. Council would simply be facilitating the timely completion of the project financing if it chooses to proceed with the projects. Mr. Lindley presented an overview of the Proposed 1992 Financing as follows: (1) Construction Fund - $59,900,000.00; (2) Capital Interest - $9,000,000.00; (3) Debt Reserves - $5,600,000.00; (4) Financing Costs - $1,900,000.00; and (5) Interest Earning - ($3,900,000.00), for total financing of $72,600,000.00. Mr. Lindley indicated that the expected interest rate is 6.5 percent with expected net annual debt services of $5,200,000.00. The Henwood Energy Services, Inc. (HESI) report indicates annual savings of $7,000,000.00 for a net annual benefit of $1,800,000.00. As a result, he stated that in an in- lieu of tax of approximately $6,000,000.00 would transfer to the General Fund. Mr. Lindley explained the Proposed 1992 Financing, as it relates to the Redding Power project, as follows: (1) Estimated Costs - $14,300,000.00; (2) Boiler Modifications - $3,000,000.00; (3) Substation - $3,800,000.00; (4) Gas Line - $700,000.00; (5) Start-up - $300,000.00; (6) Caretaking - $1,000,000.00; and (7) 142 Fund Refund - $1,400,000.00; for total financing requirements of $24,500,000.00. Available funding sources for the Redding Power project are as follows: (1) 142 Funds Expended - $1,400,000.00; (2) 176 Funds Expended - $12,900,000.00; and (3) Sale of Sawmill - $600,000.00, for a total of $14,900,000.00, and a net difference of $9,600,000.00. Mr. Lindley stated that the Proposed 1992 Financing, as it relates to the IPT Construction Fund, is as follows: (1) Purchase Price - $38,000,000.00; (2) Retainage Interest - $300,000.00; (3) Substation - $5,000,000.00; and (4) Gas Line - $800,000.00, for a total of $44,100,000.00. It is the recommendation of staff that Council adopt a resolution authorizing the circulation of the Preliminary Official Statement, the procurement of a Policy of Bond Insurance and certain other actions in connection with the City 115 03/03/92 of Redding Electric System Revenue Certificates of Participation, Series 1992A. In response to Vice Mayor Moss, Mr. Lindley indicated that the financing figure of $72,600,000.00 is very close to the actual final figure. Council Member Carter stated that although he has not been on the City Council for approximately two years, he has a vast knowledge and understanding of this project and feels qualified to vote on the matter. He indicated that having served as Council liaison to the Electric Utility Commission, this project had come up as a hopeful future project. He stated that in the spring of 1990 he had toured the Redding Power facility and was very impressed with it, having toured several other co-generation plants. He commented that he strongly endorses the project, as Redding is in a growth pattern and certainly needs this facility as a supplemental peak power source, and his only concern is cost containment. Vice Mayor Moss related that the economics of using waste wood has changed, even in the last year, and inquired if staff had considered using only straight natural gas firing. Mr. Lindley replied that the proposal includes the addition of auxiliary boilers, which will allow the City to keep the wood waste side in its natural state without any necessary modifications. This will enable the City to switch from one fuel to another without any difficulty. He indicated that there is some likelihood that the wood waste stream will become a better fuel source in the future. He does not believe it is necessary, at this particular time, to abandon the possibility of burning wood waste, but would rather preserve the option. The California Energy Commission has opined that the conversion to natural gas provides for a better condition at the facility site that is now available. In response to Council Member Carter, Mr. Lindley indicated that the Redding Power Plant conversion represents a net positive annual benefit of almost $2,000,000.00 for City ratepayers, and, in addition, provides additional funding to support the General Fund. MOTION: Made by Council Member Arness, seconded by Council Member Carter, that Resolution No. 92-95 be adopted, a resolution of the City Council of the City of Redding approving the form and authorizing the distribution of a Preliminary Official Statement, authorizing the procurement of a Policy of Bond Insurance and certain other actions in connection with Electric System Revenue Certificates of Participation, Series 1992A. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Moss Noes: Council Members - None Absent: Council Members - Dahl Resolution No. 92-95 is on file in the office of the City Clerk. Award of Bid - Bid Schedule No. 2610, Fabrication of Conveyor System for Temporary Transfer/Compost Facility Award of Bid - Bid Schedule No. 2611, Refurbishing of Container Hauler for Temporary Transfer/Compost Facility (B-050-100 & S-020-550 & S-020-650) General Services Director Masingale recalled that Council approved the implementation of a Blue Bag Curbside Recycling Pilot Program and appropriated $96,700.00 to Litter Abatement and Recycling from the Solid Waste Fund. The processing facility for this program requires capital expenditures, including: (1) curbside recycling sorting conveyors necessary for sorting recyclables collected at curbside; and (2) a refuse container lift and service body to be fitted to and mounted on an International CO1950B cab and chassis. It is the recommendation of staff that Bid Schedule No. 2610, curbside recycling sorting conveyors, be awarded to the low bidder, Industrial Welding, in the amount of $12,436.87. It is further recommended that Bid Schedule No. 2611, refurbishing of container hauler, be awarded to the sole bidder, Industrial Welding, in the amount of $23,592.86. 116 03/03/92 Council Member Arness expressed concern over the fact that Council might not be aware of all the associated program costs. Mr. Masingale replied that the Blue Bag Recycling Program includes 4,000 households and the program is expected to cost each household $1.83 per month, as opposed to $2.83 for the three-bin system. The purpose of the Blue Bag Recycling Program is to look at alternatives, in addition to the three-bin system, thereby, keeping costs as low as possible. Council Member Arness related that this program does not have a time constraint which requires Council to act on this item tonight. He stated he would like to see a summary of the various associated costs with the program, including conveyor belt, bags, labor, etc. Mr. Masingale explained that based on bids received on the conveyor belt and the hauler, staff expects the $1.83 figure to be reduced by an additional $.11 per month. He indicated that staff is trying to determine how much it will cost to run these recycling systems and still get the public's participation. Council Member Arness stated that the Blue Bag Recycling Program is a great idea; however, he does not feel there is sufficient data available. He commented that he cannot tell someone how much the program is going to cost. Mr. Masingale indicated that it is staff's goal to bring the monthly cost figure of recycling to approximately $1.50. Council Member Arness opined that maybe this is not the time to implement this program. Mr. Masingale stated that the program can be delayed, but not ignored. He conveyed that staff is trying to gather data on which to base future decisions. In response to Council Member Arness, Mr. Masingale replied that projections indicate it will cost approximately $87,000.00 per year to service 4,000 household, which does not include the blue bag pick-up, as it will be done as part of the composting operation. Vice Mayor Moss stated that the City cannot afford to wait until 1995 to implement this program. Mr. Masingale stressed that it is important for the City to know what the associated costs are in running a recycling program. This information will be beneficial should the City decide to contract out these services. Vice Mayor Moss stated that although recycling is not economically feasible, it is State mandated and the City must comply. Council Member Arness explained that he is concerned about the less fortunate families which cannot afford to pay this additional fee. Council Member Carter acknowledged that recycling is not economic; however, it is being State mandated and there is an associated time line. MOTION: Made by Council Fulton, seconded by Council Member Carter, that Bid Schedule No. 2610, fabrication of conveyor system, and Bid Schedule No. 2611, refurbishing of container hauler, be awarded to Industrial Welding, in the amount of $12,436.87 and $23,592.86 respectfully. The Vote: Unanimous Ayes RESOLUTION - Appropriating Funds re Additional Purchases for Stillwater Wastewater Treatment Plant * (B-130-070 & W-010-560) Public Works Director Galusha recalled in 1989, during the final design for the Stillwater Wastewater Treatment Facility, City staff directed CH2M Hill to deduct about $1,000,000.00 in features from the plant in order to keep the project within the City's budget. After the bidding process, the City Council awarded the plant construction contract to Humphrey Construction, Inc. for $16,100,000.00, with a $400,000.00 contingency fund. Thanks to the solid design by CH2M Hill, the cooperative nature of Humphrey Construction, and the thorough and positive construction management by the City's Public Works 117 03/03/92 construction management team, this project is being completed under budget by using only about $100,000.00 of the contingency fund. Mr. Galusha stated that the new plant is operating well and meeting all permits limits, however, some of the previously deleted items are now having significant impact on the operation efficiency of the facility. Therefore, the Public Works Department is requesting Council's approval for the following additional purchases from the contingency fund: (1) Additional asphalt paving - $30,000.00; (2) Additional concrete sidewalks - $25,000.00; (3) Used sludge truck tractor - $35,000.00; (4) Tractor with forks and mower - $25,000.00; and (5) Personal computer with printer and software - $8,000.00. These expenditures, totaling $123,000.00, will still leave $177,000.00 in unspent contingencies with the project 99 percent completed. 118 03/03/92 In order to increase the operational effectiveness of the plant staff and provide for a safe and low maintenance facility, it is the recommendation of staff that Council approve the aforementioned purchases and authorize the City Manager to negotiate on the open market for a sludge truck tractor at a price which is favorable to the City. MOTION: Made by Council Member Fulton, seconded by Council Member Carter, to approve the issuance of change orders to Humphrey Construction for pavement and sidewalk construction in the amount of $55,000.00 and adopt Resolution No. 92-96, a resolution of the City Council of the City of Redding approving and adopting the 62nd amendment to City Budget Resolution No. 91-253 appropriating $68,000.00 for equipment at the Stillwater Wastewater Treatment Plant; and authorizing the City Manager to negotiate on the open market for a sludge truck tractor at a price which is favorable to the City. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton, and Moss Noes: Council Members - None Absent: Council Members - Dahl Resolution No. 92-96 is on file in the office of the City Clerk. ADJOURNMENT There being no further business, at the hour of 9:13 p.m., Vice Mayor Moss declared the meeting adjourned. APPROVED: _________________________________ Vice Mayor ATTEST: ______________________________ City Clerk