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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1992-03-17 City Council, Regular Meeting Council Chambers Redding, California March 17, 1992 7:00 p.m. The Pledge of Allegiance to the Flag was led by City Attorney Hays. The Invocation was offered by Pastor Greg Tyree, First Presbyterian Church. The meeting was called to order by Mayor Dahl with the following Council Members present: Arness, Carter Fulton, and Moss. Also present were City Manager Christofferson, Assistant City Manager McMurry, City Attorney Hays, Director of Public Works Galusha, Director of Electric Utility Services Lindley, Director of Planning and Community Development Perry, Police Chief Blankenship, Electric Utility Resources Manager Coleman, Fire Chief Bailey, Director of Finance Downing, Principal Planner Keaney, Director of General Services Masingale, Director of Parks and Recreation Riley, Housing Manager Maurer, Airports Director Ruff, Director of Utilities/Customer Service Vokal, Assistant Director-General Services Kohn, Associate Planner Morgon, Budget Services Officer Starman, Management Analyst Anderson, Chief Engineering Technician Coats, Working Foreman-Buildings Harris, Assistant City Clerk Moscatello, Public Information Officer Bachman, City Treasurer Linville, City Clerk Strohmayer, and Secretary to the City Council Rudolph. APPROVAL OF MINUTES MOTION: Made by Council Member Moss, seconded by Council Member Carter, that the Minutes of the Adjourned Regular Meeting of March 2, 1992, Adjourned Regular Meeting of March 3, 1992, and Regular Meeting of March 3, 1992, be adopted. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton, and Moss Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Dahl CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 17, check numbers 179418 through 179802 inclusive, in the amount of $1,010,595.98, be approved and paid, and Payroll Register No. 18, check numbers 333551 through 334266 inclusive, in the amount of $865,085.04, and Automatic Payroll Deposits in the amount of $238,399.51, for the period February 16, 1992, through February 29, 1992, be approved. TOTAL: $2,114,080.53 Treasurer's Report - February, 1992 (A-050-100-600) Total Treasurer's Accountability - $ 38,312,346.05 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities - $ 55,279,691.07 Resolution - Appropriating Funds for Airports Department Personnel * (B-130-070 & A-090-100) It is the recommendation of the Finance Director that Resolution No. 92-97 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 65th amendment to City Budget Resolution No. 91-253 appropriating $11,400.00 for personnel-related expenses. Set Public Hearing - re Redding Medical Center Use Permit Application UP-5-92 and Development Agreement (1100 Butte Street) (L-010-390) 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 Redding Medical Center's Use Permit Application UP-5-92 and Development Agreement. 113 03/17/92 Set Public Hearing - re Rezoning Application RZ-5-92, by the City of Redding (Carlton Subdivision and Gregory Estates) (L-010-230 & S-100-068 & S-100-225) 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-5-92, a request to rezone property to "R-1" Single Family Residential District and "U-FP" Unclassified District with floodplain. Set Public Hearing - re Rezoning Application RZ-8-92, by Andrew Norman and William Farrell (2755 and 2723 Eureka Way) (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., April 7, 1992, to consider Rezoning Application RZ-8-92, a request to amend the site-plan-review criteria on property located at 2755 and 2723 Eureka Way. Resolution - Property Tax Exchange Agreement re Annexation 91-3, Sacramento River Waterways (T-010-650 & A-150-243) It is the recommendation of the Planning and Community Development Director that Resolution No. 92-98 be adopted, a resolution of the City Council of the City of Redding involving property tax transfers between the County of Shasta and the City of Redding for the City of Redding Reorganization No. 91-3, Sacramento River Waterways. Resolution - Lease with Exchange Club of Redding for Warehouse Facility at Redding Municipal Airport (C-070-010 & A-090-100) It is the recommendation of the Airports Director that Resolution No. 92-99 be adopted, a resolution of the City Council of the City of Redding approving and authorizing the Mayor to execute the Lease between the City of Redding and the Exchange Club of Redding, effective March 17, 1992 through March 16, 2002, with two five-year renewal options, for the construction of a warehouse facility at Redding Municipal Airport for Air Show dry-storage activities. Exchange Club of Redding - Request to Hold Air Show '92 at Redding Municipal Airport (A-090-100) It is the recommendation of the Airports Director that the Exchange Club of Redding's request to utilize Redding Municipal Airport facilities for Air Show '92 on May 2 and 3, 1992, be approved. Exchange Club of Redding - Request to Sell Beer and Wine at Air Show '92 at Redding Municipal Airport (A-110-100 & A-090-100) It is the recommendation of the Airports Director that Council grant the Exchange Club of Redding permission to sell beer and wine at Redding Municipal Airport on May 2 and 3, 1992, from 7:00 a.m. to 5:00 p.m., in conjunction with Air Show '92. Resolution - Change Order with Lawrence and Associates re Temporary Erosion Control Report and Report for Proposed Ground-Water Monitoring Wells and Piezometers (S-020-300) It is the recommendation of the General Services Director that Resolution No. 92-100 be adopted, a resolution of the City Council of the City of Redding approving and authorizing the City Manager to sign the following in connection with performing additional tasks for the Benton Landfill Closure Plan: "Authorization and Contract for Professional Services," together with Contract Modification (Change Order) 012, between the City of Redding and Lawrence & Associates (Project No. C91.11.02B; Contract No. C-2457), to provide services to prepare an as-built, temporary erosion-control report, and to prepare a report describing proposed ground-water monitoring wells and piezometers, in an amount not to exceed $5,855.00. Award of Bid - Bid Schedule No. 2601, Solid Waste Containers (B-050-100 & S-020-100) It is the recommendation of the General Services Director that Bid Schedule No. 2601, solid waste containers, be awarded to the low bidder, Bay-Con, Inc., in the amount of $46,584.04. Funds for this purchase are included in the 1991-92 budget. 114 03/17/92 115 03/17/92 Resolution - Appropriating Funds re Benton Landfill - New Regulations for Waste Discharge Requirements and Storm Water Runoff Resolution - Contract with Lawrence & Associates * (B-130-070 & S-020-300) It is the recommendation of the General Services Director that Resolution No. 92-101 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 70th amendment to City Budget Resolution No. 91-253 appropriating $17,650.00 for professional services. It is further recommended that Resolution No. 92-102 be adopted, a resolution of the City Council of the City of Redding approving the Authorization and Contract for Professional Services dated March 11, 1992, between the City of Redding and Lawrence & Associates pertaining to waste discharge requirements and storm-water runoff at Benton Landfill, project no. C92.02.12, not to exceed $17,642.73, and authorizing the City Manager to sign on behalf of the City. Resolution - Appropriating Funds re Solid Waste Equipment Financing * (B-130-070 & S-020) It is the recommendation of the General Services Director that Resolution No. 92-103 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 69th amendment to City Budget Resolution No. 91-253 appropriating $8,300.00 for the acquisition of solid waste equipment. Resolution - Document Destruction (A-050-055-750) It is the recommendation of the City Clerk that Resolution No. 92-104 be adopted, a resolution of the City Council of the City of Redding authorizing the destruction of certain records. Resolution - Proclaiming March 31 - April 5, 1992 as Shasta Dixieland Jazz Festival Week (A-050-060-600) It is the recommendation of the Recreation and Parks Director that Resolution No. 92-105 be adopted, a resolution of the City Council of the City of Redding proclaiming March 31 through April 5, 1992, as Shasta Dixieland Jazz Festival Week. Resolution - Agreement with Redding Youth Baseball to Provide 1992 Umpire Services (B-130-030-675) It is the recommendation of the Recreation and Parks Director that Resolution No. 92-106 be adopted, a resolution of the City Council of the City of Redding approving and authorizing the Mayor to sign the agreement, for the period of April 1, 1992 through March 31, 1993, between the City of Redding and Redding Youth Baseball for 1992 Umpire Services, in the amount of $21,000.00. Award of Bid - Bid Schedule No. 2589, Playground Equipment (B-050-100 & P-050) It is the recommendation of the Recreation and Parks Director that Bid Schedule No. 2589, playground equipment, be awarded to the low bidder Columbia Cascade Company, in the amount of $26,273.46. Funds are available in the 1991-92 park development budget. Notice of Completion - Bid Schedule No. 2549, Guardrail Safety Project (B-050-020 & T-080-300 & G-100-070) It is the recommendation of the Public Works Director that Bid Schedule No. 2549 (Job No. 9142), awarded to Coral Corporation of Oregon, be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $163,136.00. Bid Schedule No. 2515 - Additional Contingency Funds re Traffic Signals on SR273 at Wyndham and Ellis, and on Victor Avenue at SR44 on/off Ramps and Mistletoe, and RABA Yard Improvements (B-050-020 & R-010 & T-080-700) It is the recommendation of the Public Works Director that Council approve a $30,000.00 increase in Bid Schedule No. 2515's, traffic signals on SR273 at Wyndham and Ellis, and on Victor Avenue at SR44 on/off ramps and Mistletoe, and RABA Yard improvements, contingency fund, for a total of $61,970.00. The additional funds are being provided by the Redding Area Bus Authority. 116 03/17/92 City-Wide Master Storm Drain Study - Authorize Negotiation (S-070-030) It is the recommendation of the Public Works Director that Council direct the Public Works Director to negotiate with the firms of James M. Montgomery (JMM) Consulting Engineers, Inc. of Sacramento and Hydromet, Inc. of Redding, for the preparation of the City-Wide Master Storm Drain Study. The study is outlined in the 1991-92 budget. Award of Bid - Bid Schedule No. 2608, Construction of Redding Municipal Airport Parallel Taxiway "D" Extension (B-050-020 & A-090-100 & G-100-070-095 & G-100-170-200) It is the recommendation of the Public Works Director that Bid Schedule No. 2608 (Job No. 9971), construction of Redding Municipal Airport Parallel Taxiway "D" Extension, be awarded to the low bidder, Northstate Asphalt, Inc., in the amount of $396,995.00, an additional $20,000.00 be approved to cover the cost of engineering, inspection, and materials testing, and $40,000.00 be approved to cover the cost of contract change orders, for a total of $457,000.00. Eligible project costs are reimbursable from the Federal Aviation Administration (FAA) at a 90 percent rate, with the Caltrans Aeronautics Division, State Airport Loan Program, lending the City the 10 percent matching funds. It is further recommended that Council make the following findings regarding Environmental Determination ED-11-91: 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 May 1, 1991. Award of Bid - Bid Schedule No. 2607, Redding Municipal Airport Corporate Taxiway Extension (B-050-020 & A-090-100 & G-100-070-095) It is the recommendation of the Public Works Director that Bid Schedule No. 2607 (Job No. 9970), Redding Municipal Airport Corporate Taxiway Extension, be awarded to the low bidder, Northstate Asphalt, Inc., in the amount of $83,550.45, an additional $8,449.55 be approved to cover the cost of engineering, inspection and materials testing, and $8,000.00 be approved to cover the cost of contract change orders, for a total of $100,000.00. Eligible projects costs are reimbursable from the Federal Aviation Administration (FAA) at a 90 percent rate, with the Municipal Airport fund providing the remaining monies. Resolution - Appropriating Funds for Relocation/Construction of Water Booster Pump Station No. 5 Award of Bid - Bid Schedule No. 2602, Pump Station No. 5 * (B-130-070 & B-050-020 & W-030-125-050) It is the recommendation of the Public Works Director that Resolution No. 92- 107 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 67th amendment to City Budget Resolution No. 91-253 appropriating $223,000.00 for the relocation/construction of water booster pump station number 5. It is further recommended that Bid Schedule No. 2602 (Job No. 9927), construction of pump house number 5, be awarded to the low bidder, TICO Construction of Palo Cedro, in the amount of $458,000.00, an additional $20,000.00 for engineering and inspection fees, and $45,000.00 for contract change orders, for a total contract cost of $523,000.00. In addition to the budget appropriation, an additional $300,000.00 is included in the 1991-92 budget. It is also recommended that Council make the following findings regarding Environmental Determination ED-1-92: 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. 117 03/17/92 Generation 5 Technology - Contract for Phase II Office of Traffic Safety (OTS) Grant (A-070-400 & T-080-720-200 & G-100-170-700) It is the recommendation of the Public Works Director that Council authorize staff to proceed with the finalization of a contract with Generation 5 Technology to develop the necessary software interface, and authorize the City Manager to execute the contract on behalf of the City, at such time as the Office of Traffic Safety (OTS) authorizes the City to proceed. Resolution - Releasing Abatement Proceedings at 2932 Veda Street, owned by Phyllis M. Peck and Dianna M. Peck (A-030-070) It is the recommendation of the City Attorney that Resolution No. 92-108 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 2932 Veda Street, owned by Phyllis M. Peck and Dianna M. Peck. Resolution - Releasing Abatement Proceedings at 1242 Ledell Drive, previously owned by Inez A. Harris (A-030-070) It is the recommendation of the City Attorney that Resolution No. 92-109 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 1242 Ledell Drive, previously owned by Inez A. 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, Moss and Dahl Noes: Council Members - None Absent: Council Members - None Resolution Nos. 92-97, 92-98, 92-99, 92-100, 92-101, 92-102, 92-103, 92-104, 92-105, 92-106, 92-107, 92-108, and 92-109 are on file in the office of the City Clerk. WRITTEN COMMUNICATIONS Kip Lee - Letter re Wooden Barrier at Court/Schley (T-080-720) City Clerk Strohmayer advised that a letter has been received from Kip Lee regarding his request that a white wooden barrier located at the intersection of Court and Schley be removed. Kip Lee, 1797 Kenyon Drive, stated he would like to know staff's reasoning for not removing the barrier. Council Member Arness indicated that he has a great deal of confidence in City staff and appreciates when the public lets the City know of problems, such as holes in streets, etc. He stated that Mr. Lee's actions, however, are somewhat frivolous and should be handled at staff level. He stated that if staff has determined that the barrier should not be removed, he fully supports the recommendation. Mr. Lee indicated that he requested Council Member Carter to review the site and the visual problems the barrier presents. Council Member Carter responded that the barrier does not appear to be a major issue. He stated that if a car went through the first barrier, it would probably be stopped by the second barrier. Mayor Dahl thanked Mr. Lee for his comments, however, indicated that it is costly for the City to continually send letters back and forth and Mr. Lee should use more discretion when asking for issues to be brought before the City Council. PUBLIC HEARING - re Rezoning Application RZ-6-92, by Enterprise School District (795 Hartnell Avenue) (L-010-230) 118 03/17/92 The hour of 7:00 p.m. having arrived, Mayor Dahl opened the public hearing regarding Rezoning Application RZ-6-92. 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 March 12, 1992 City Clerk Strohmayer advised that no protests were received. Planning and Community Development Director Perry related that the Planning Commission, at its February 25, 1992, meeting recommended approval of the rezoning of approximately 8.6 acres located at 795 Hartnell Avenue (currently occupied by Rother School) from "R1-B10" Single Family Residential District to "U" Unclassified District. He indicated that the request is a result of an inquiry made by the School District regarding the possibility of erecting a pole sign, which the "R-1" zoning does not permit. It is the recommendation of both the Planning Commission and staff that Council ratify the Negative Declaration, approve Rezoning Application RZ-6-92 for a "U" Unclassified District and offer the ordinance for first reading. Mayor Dahl determined that there was no one present who wished to speak on this matter. MOTION: Made by Council Member Arness, seconded by Council Member Fulton, that the public hearing be closed: The Vote: Unanimous Ayes MOTION: Made by Council Member Moss, seconded by Council Member Arness, that Council make the following findings regarding Rezoning Application RZ-6-92: 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 February 12, 1992. The Vote: Unanimous Ayes Council Member Moss offered Ordinance 1999 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 to "U" Unclassified District (RZ-6-92). PUBLIC HEARING - re Rezoning Application RZ-7-92, by TRIOND (Victor Avenue, east of Roberts Court and north of Hartnell Avenue) (L-010-230) The hour of 7:00 p.m. having arrived, Mayor Dahl opened the public hearing regarding Rezoning Application RZ-7-92. 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 March 9, 1992 City Clerk Strohmayer advised that no protests were received. Planning and Community Development Director Perry indicated that the Planning Commission recommended that approximately 4,500 square feet of property located at 2958 Victor Avenue, north of Hartnell Avenue, be rezoned from "R-1" Single Family Residential to "U" Unclassified. He indicated that this rezoning was required as a condition of approval for the recently approved use permit (UP-93-91), providing for the expansion of the convenience store located on the adjacent parcel to the south. Approval of this request will make the zoning designation consistent with that of the amended General Plan. It is the recommendation of staff that Council ratify the Negative Declaration and offer the ordinance for first reading. Mayor Dahl determined that there was no one present who wished to speak on this matter. 119 03/17/92 MOTION: Made by Council Member Moss, seconded by Council Member Fulton, that the public hearing be closed. The Vote: Unanimous Ayes 120 03/17/92 MOTION: Made by Council Member Fulton, seconded by Council Member Arness, that Council make the following findings regarding General Plan Amendment GPA- 11-91 for Rezoning Application RZ-7-92: 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 Planning Commission on September 24, 1991. The Vote: Unanimous Ayes Council Member Fulton offered Ordinance 2000 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 to "U" Unclassified District (RZ-07-92). PUBLIC HEARING - re Application for a Limousine Owner's Permit by Jennifer Borda, dba Champagne Limousine (T-100-150) The hour of 7:00 p.m. having arrived, Mayor Dahl opened the public hearing regarding an Application for a Limousine Owner's Permit by Jennifer Borda dba Champagne Limousine. 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 City Clerk recommendation dated March 10, 1992 City Clerk Strohmayer advised that Council, at its meeting of March 17, 1992, scheduled a public hearing to determine public convenience and necessity regarding an application for a Limousine Owner's Permit by Jennifer Borda, dba Champagne Limousine. Due to a publication error, it is recommended that the public hearing be closed and rescheduled for 7:00 p.m., April 7, 1992. MOTION: Made by Council Member Moss, seconded by Council Member Fulton, that the public hearing be closed regarding an Application for a Limousine Owner's Permit by Jennifer Borda, dba Champagne Limousine, and rescheduled for April 7, 1992. The Vote: Unanimous Ayes ORDINANCE NO. 1997 - Rezoning Application RZ-2-92, by the City of Redding (Parkside Manor Subdivision, Unit 3) (L-010-230 & S-100-583) MOTION: Made by Council Member Moss, seconded by Council Member Carter, that the full reading of Ordinance No. 1997 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 Moss, that Ordinance No. 1997 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 to "R-1" Single- Family Residential District (RZ-2-92). Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton, Moss and Dahl Noes: Council Members - None Absent: Council Members - None Ordinance No. 1997 is on file in the office of the City Clerk. ORDINANCE NO. 1998 - Rezoning Application RZ-3-92, by the City of Redding (Woodhaven Homes Subdivision, Units 10 and 11) (L-010-230 & S-100-808) MOTION: Made by Council Member Moss, seconded by Council Member Carter, that the full reading of Ordinance No. 1998 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Moss, seconded by Council Member Arness, that Ordinance No. 1998 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 to "R-1" Single- Family Residential District (RZ-3-92). 121 03/17/92 Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton, Moss and Dahl Noes: Council Members - None Absent: Council Members - None Ordinance No. 1998 is on file in the office of the City Clerk. RESOLUTION - Establishing Policy for a Three Percent General Fund Reserve (A-050-060-555 & B-130-070) Mayor Dahl stated that it is the responsibility of the City to maintain a sufficient level of unreserved fund balance to ensure that continued orderly operation of government and the provision of services to its citizens. Historically, the City of Redding has maintained an informal policy in regard to unrestricted fund balance, which is established by Council as part of the budget process. An adequate unreserved fund balance can avoid or reduce budget cutbacks and tax and fee increases if shortfalls develop during a fiscal year. Mayor Dahl recommended that Council adopt a formal policy for the establishment of a three percent General Fund unreserved fund balance. MOTION: Made by Council Member Arness, seconded by Council Member Moss, that Resolution No. 92-110 be adopted, a resolution of the City Council of the City of Redding establishing and adopting a policy instituting a three percent General Fund unreserved fund balance. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton, Moss and Dahl Noes: Council Members - None Absent: Council Members - None Resolution No. 92-110 is on file in the office of the City Clerk. IDENTIFICATION OF SURPLUS PROPERTY (C-070) Mayor Dahl related that given the current budget situation, it would be prudent for Council to direct staff to prepare a report on potential surplus property to see if revenues from the sale of surplus property can make a significant contribution to the City's capital improvement program, and to get unneeded land back on the tax roll. The study should also include those properties, which, while needed, in the long run could possibly be leased until they are needed. MOTION: Made by Council Member Moss, seconded by Council Member Arness, to direct staff to prepare a report identifying surplus property to determine if revenues from the sale of the properties can make a significant contribution to the City's capital improvement program, including properties which can be leased until needed. The Vote: Unanimous Ayes LEAGUE OF WOMEN VOTERS OF THE REDDING AREA - Letter re Panel Discussion on May 20, 1992 (A-050-060) Mayor Dahl indicated that a letter has been received from the League of Women Voters of the Redding Area inviting two Council Members to participate in a panel discussion on May 20, 1992 at the Days Hotel. He requested Council Members Moss and Arness attend. SHASTA-TRINITY NATIONAL FOREST - Letter re Carl Martin's Proposed Mt. Shasta Ski Area and Wintu Indians Request for a Spiritual Quest/Ceremonial Site (E-050) Council Member Carter recalled that the Redding City Council, along with many other city and county entities, has passed numerous resolutions in support of Carl Martin's proposed ski area to be located just to the west of the old Mt. Shasta ski facility. He indicated that there have been many delays with this project, the most recent being a proposal by a Siskiyou County Wintu Indian group to have the mountain declared as "Native American Mythological Places on Mt. Shasta." He stated that Mr. Martin does not object to this new proposal by the Wintu Indians, as he continues to have cordial relations with the Wintus and understands and embraces their traditions. Council Member Carter requested Council to authorize the Mayor to send a letter to the Shasta-Trinity National Forest Service confirming the City's 122 03/17/92 continued support of the proposed ski area and to encourage the Forest Service to expedite this Native American request. Morgan Orwig, of Save-Our-Skiing, related that for the past thirteen years, the proposed Mt. Shasta ski area has faced various opposition, with the most recent being the establishment of a historical designation in Panther Meadow. He stated that the historical designation can prove to be beneficial to all parties involved. The proposed ski area does not infringe on Panther Meadow, which is vastly utilized in the summer months by hikers, etc. and the Wintu are rightly concerned about its preservation. If the ski area is built, a protective management plan could be developed between the U. S. Forest Service and the ski operator to ensure Panther Meadow receives adequate protection; however, without it, adequate protection is not possible, as evidenced by the fact that the U. S. Forest Service does not have the funding or manpower to constantly patrol the area. He thanked Council for its continued support of the proposed Mt. Shasta ski area. MOTION: Made by Council Member Moss, seconded by Council Member Arness, authorizing the Mayor to send a letter to the Shasta-Trinity National Forest Service confirming the City's continued support of Carl Martin's proposed Mt. Shasta ski area and encouraging the expediting of the Native American request. The Vote: Unanimous Ayes LEGISLATIVE MATTERS (L-040-300) In a Report to City Council dated March 10, 1992 and a supplemental Report dated March 17, 1992, incorporated herein by reference, City Manager Christofferson explained that the following bills are presently under consideration and recommended possible positions Council may wish to take on each: (1) Oppose SB1538 re Brown Act; (2) Support SB1645 re providing cities a penalty assessment on all vehicle code fines; (3) Oppose AB3213 re shifting of all cigarette tax to the state; and (4) Oppose SCA41 re increases in motor vehicle in-lieu tax to go to counties. MOTION: Made by Council Member Arness, seconded by Council Member Carter, authorizing the Mayor to send letters to the appropriate officials stating support of SB1645 and opposition to SB1538, AB3213 and SCA41. The Vote: Unanimous Ayes OVERTIME REDUCTIONS (B-130-070 & P-100-120) Finance Director Downing recalled that Council, during "Rounds I and III," directed staff to reduce the City's General Fund overtime budget by $180,000.00, or 33.35 percent. She indicated that the General Fund Departments have reduced overtime by $28,000.00, thereby, requiring an additional $156,400.00 reduction to meet the established target. She stated that although management has implemented new policies to curtail overtime, it has become evident that many departments will not be able to achieve their overtime reduction targets. This is particularly true for the Police Department, which would have to reduce overtime by an additional $142,090.00 over the next four months. It is the Finance Department's recommendation that all General Fund Departments be directed to reduce their overtime budgets by the maximum amount possible, allowing more flexibility and mitigate the impact on service levels. She advised, however, that some departments will not be able to achieve the level of savings originally managed by Council. As a result, additional budget reductions may be needed at some point to bring expenditures in line with revenue. Council Member Moss stated that the overtime reduction was part of the package submitted by staff for Council's consideration. He related that it was not his intention to put staff in a position of mandating that specific dollar amounts be reduced from specific areas. He indicated that Council accepted staff's recommendation on the basis that the reductions could be accomplished as presented. He said that if specific reductions cannot be made as originally approved, it is up to staff, not Council, to determine where the reductions can be made. He indicated he is concerned about the bottom line and achieving the total mandated reductions. Council Member Arness concurred with Council Member Moss. 123 03/17/92 It was the consensus of Council that the achievement of the total mandated reductions is the primary consideration, and not the specific dollar designations from specific areas. DOWNTOWN MALL - Long Term and Short Term Approaches (B-130-070 & M-010-200) Assistant City Manager McMurry reviewed his report to City Council dated March 12, 1992, incorporated herein by reference, outlining the long term and short term budget issues regarding City support of the Downtown Mall. Mr. McMurry then outlined his report to City Council dated January 16, 1992, incorporated herein by reference, which provides a comprehensive look at the City's historical relationship with the Mall, examines alternative financial and operating arrangements, and recommends that, insofar as legally and financially possible, support of the Mall operating and maintenance deficit be transferred from the City to the Mall property owners. He indicated that the preferred, and possibly only realistic mechanism for accomplishing such a transfer, would involve the amendment of the Benefit Assessment Act of 1982 to include provisions for property owners assessments to be levied to pay for the maintenance and operation of an enclosed Mall, and the concomitant formation of a private non-profit organization of Mall property owners with whom the City could contract for the operation and maintenance of the Mall common areas. Assemblyman Statham has agreed to carry such a bill, and language has been drafted to incorporate the necessary amendments, and that language is currently being reviewed by attorneys representing Bob Dicker and other Mall property owners. Preliminary discussions with Mr. Dicker regarding the formation of a private non-profit corporation indicate that prospects of its formation are promising. It is the recommendation of staff that Council direct staff, in terms of long term budget issues, to continue its efforts to achieve the amendment to the Benefit Assessment Act of 1982 through Assemblyman Stan Statham's office and intensify the discussions with Mr. Dicker and his associates toward the formation of the private non-profit corporation. Council Member Moss requested staff to investigate the cost of removing the roof on the Downtown Mall and making it an open air mall. Council Member Arness indicated that he hopes Council will consider all possible alternatives before making any decisions. Council Member Moss stated that there is a substantial number of the Mall property owners which are not answering the City's letters, thereby making it almost impossible to carry on a meaningful discussion with the Mall Association. Council Member Fulton related that in 1970 when the Mall was established, there was a great deal of discussion about open and closed malls. He indicated that the consensus at the time was that due to the heat in the summer, the additional money to enclose the mall was beneficial. He explained that approximately $800,000.00 in federal funds were used to build the mall and the City, thereby, has a responsibility which cannot be ignored. MOTION: Made by Council Member Moss, seconded by Council Member Fulton, to direct staff to continue its efforts to achieve the amendment to the Benefit Assessment Act of 1982 through Assemblyman Stan Statham's office and intensify the discussions with Mr. Dicker and his associates toward the formation of the private non-profit corporation. The Vote: Unanimous Ayes Mr. McMurry explained that it is also necessary to consider short term budget reductions, as General Services anticipates an additional $42,000.00 will need to be appropriated in the current year if the same level of operating and maintenance services are to be maintained. He indicated that over the past several years, the General Fund, in addition to the $30,000.00 per year contributed toward debt service on the parking structure, has contributed over $200,000.00 per year toward the maintenance and operation of the Downtown Mall. Mr. McMurry related that, in addition to the Mall's regular operations, if the same level of service is to be maintained, the 1992-93 budget will need to 124 03/17/92 include a proposed $948,000.00 appropriation for replacement and repair of the gutters, roof, skylights, and air conditioning and heating units at the Downtown Mall. It is the recommendation of staff that the Mall's thermostat settings remain the same, however, reduce janitorial services, including the closure of the bathrooms and operation of the fountains, and repairs and supply costs to a minimum level wherever possible. Council Member Arness stated that he is opposed to having the Mall's bathrooms closed. Council Members Fulton and Moss concurred with Council Member Arness. Council Member Moss stated he is not in favor of making reductions which will contribute to the Mall's deterioration. In response to Council Member Fulton, Mr. McMurry replied that the reduction in janitorial services includes less frequent mopping, waxing, polishing, etc. and ceasing the operation of the fountains. He stated that the only alternative would be to make an additional $42,000.00 appropriation. Motion made by Council Member Fulton to make a $42,000.00 supplemental appropriation toward the maintenance of the Downtown Mall died due to a lack of a second. MOTION: Made by Council Member Moss, seconded by Council Member Arness, to direct staff to maintain the current thermostat settings and reduce janitorial services, repairs and supply costs at the Downtown Mall where appropriate, while still maintaining the operation of the restroom facilities and fountains. The Vote: Unanimous Ayes POLICE DEPARTMENT BUDGET REDUCTIONS (B-130-070 & A-050-270) Finance Director Downing stated that part of the proposed Police Department budget reductions was to discontinue the Traffic Safety Program when the grant expires and to postpone the purchase of all vehicles for the department's Field Operations Division. Staff is concerned, however, about the adverse consequences which may result from these actions. In summary, Ms. Downing related that department management recognizes that it may be necessary to reduce staff levels, through a layoff or furlough program, and/or reduce the number of vehicles purchased this year to balance the General Fund budget. Management, however, requests that Council permit it to evaluate where department budget cuts could occur with the least impact on the overall effectiveness of the department. It is the recommendation of staff that Council remove the directive for specific cuts within the Police Department. Management will develop an overall plan for cuts within the department for Council's consideration at its next meeting. City Manager Christofferson related that it is staff's intention to present the remaining budget reductions at the April 7, 1992 meeting. MOTION: Made by Council Member Moss, seconded by Council Member Fulton, to remove the directive for specific cuts within the Police Department and direct staff to develop an overall plan for reductions within the Police Department for consideration at the April 7, 1992 meeting. The Vote: Unanimous Ayes RESOLUTION - Fire Hydrant Rental Fee (W-030-400 & B-130-070) Finance Director Downing recalled that Council at its March 3, 1992, meeting adopted a resolution discontinuing the practice of charging the General Fund a fire hydrant rental fee. She indicated, however, that it was unclear if Council also intended to eliminate the fire hydrant rental fee for private hydrants. Ms. Downing noted that the elimination of the rental fee for private hydrants would save the owners of the property served by those hydrants approximately $11,000.00 per year, with the Water Utility loosing a like amount of revenue. 125 03/17/92 She indicated that the Water Utility is providing a valuable service to the property owners served by the hydrants and should be compensated. It is the recommendation of staff that Council adopt a resolution eliminating fire hydrant rental fees for public hydrants, however, making private hydrants subject to a $5.00 per month fire hydrant rental fee. MOTION: Made by Council Member Moss, seconded by Council Member Fulton, that Resolution No. 92-111 be adopted, a resolution of the City Council of the City of Redding, effective April 1, 1992, (1) Rescinding Resolution No. 92-93 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 charging $5.00 per month for private water hydrants. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton, Moss and Dahl Noes: Council Members - None Absent: Council Members - None Resolution No. 92-111 is on file in the office of the City Clerk. RESOLUTION - Planning Department Schedule of Fees and Service Charges (F-205-600 & A-050-250) Planning Director Downing explained that for the past ten years, the Planning and Community Development Department has experienced a steady increase in the volume of development permits processed. The trend has been most dramatic over the last five years, with applications increasing from 593 processed in 1987 to 1,197 processed in 1991, a 102 percent increase. She indicated that the General Fund continues to subsidize these services, as the revenue generated from fees covers only a small portion of the cost of providing them. Ms. Downing related that Council has expressed a desire to finance responsive services with dedicated revenue and user fees which directly relate to the level of service provided. This increase will only cover the cost of processing applications, and will not cover rezoning or general plan amendments initiated by the City, code enforcement, responses to requests for information, preapplication conferences, environmental review costs, department administration, purchasing or overhead, and charges from other departments. It is the recommendation of staff that planning fees be increased by 15 percent each year until recovery of the full cost of services is achieved. This will reduce the level of subsidy in the Planning Division over time, phasing in the increase without a dramatic one-time impact to the service user. In response to Council Member Arness, Planning and Community Development Director Perry replied that the City can only charge for the actual costs of processing the permits. Currently the City's recovery rate is approximately 7.9 percent, compared to the County of Shasta's recovery rate of approximately 50 percent. In response to Council Member Moss, Ms. Downing stated that by increasing planning fees 15 percent per year, staff estimates it will take approximately five years to achieve full cost recovery. Council Member Moss questioned how staff expects to reach full cost recovery in five years when it will be dealing with costs increasing an additional three and one half to four percent per year. Ms. Downing stated that the increases will have a compounding effect and should be achieved in approximately five years, however, it may take longer. MOTION: Made by Council Member Fulton, seconded by Council Member Dahl, that Resolution No. 92-112 be adopted, a resolution of the City Council of the City of Redding amending its Schedule of Fees and Services Charges, representing a 15 percent increase in planning fees each year until full cost recovery is achieved. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton, Moss and Dahl Noes: Council Members - None Absent: Council Members - None 126 03/17/92 Resolution No. 92-112 is on file in the office of the City Clerk. DEFERRED ANNEXATION FEE (A-150 & T-010-650) Planning and Community Development Director Perry recalled that Council, as a result of the recent property tax exchange agreement with the County, directed staff to explore the possibility of a deferred annexation fee. As a product of the revised property tax exchange agreement with the County, the City will now have areas which pay different amounts of property tax to the City. For example, areas in the City prior to January 1, 1992, out of every property tax dollar paid, the City received about $0.175, with the remainder going to the County, schools etc. In those areas annexed after January 1, 1992, the City will now receive approximately $0.07 of the property tax dollar paid. Over time, this 127 03/17/92 will reduce the overall amount of property tax on a Citywide per capita basis and as a component of City finances. In addition, over time, this could represent a significant shortfall in City finances and the ability to provide basic services and capital improvements. Mr. Perry indicated that one way to offset this loss of income would be to establish a one-time fee on new construction in the annexing areas that could be used to fund a trust as a source of replacement income. He stated that the idea came from discussions Council Member Moss had with developers who were being stymied by the County in their annexation efforts. In short, a fee would be collected from new construction in these areas and placed in a fund. The City would not be able to use the fee directly; rather, it could only use the interest or a portion of the interest from the investment to fund services. Over a period of years, the goal would be for the fund to grow to offset all or a part of the lost property tax revenue. Mr. Perry stated that the deferred annexation fee is an attempt to equalize funding of General Fund services between properties developed in areas already in the City and areas that could be annexed. The fee is to be paid by those who want urban development and higher densities on City services versus those who are content to remain outside the City. The fee would be deferred until a building permit was issued. The fee would not be collected at the time of annexation nor with the subdivision of the property. The theory is that services provided are minimal until the property is developed. Existing development at the time of annexation would not pay a fee. Mr. Perry explained that staff has reviewed the legality of the deferred annexation fee with the City Attorney and he feels that this approach can be implemented. Notices have also been sent to property owners in the annexing areas of consideration of the fee, although an exact amount could not be indicated. Mr. Perry related that in order to establish the level of fee needed, two models were developed. The first, a property tax income comparison showing what the property tax revenue would be from a 100-lot subdivision in an annexing area before and after the tax exchange agreement, or as compared to property already in the City for a 20- or 40-year period. Results were as follows: (1) 20 Years - Prior Formula $759,163; Current Formula $303,654; Difference $455,481; and (2) 40 years - Prior Formula $2,832,242; Current Formula $1,132,897; Difference $1,699,345. The real magnitude, however, would be based on potential development in the approximately six square miles of area which is now annexing. The second model was developed to ascertain what level of fee would be needed to achieve property tax revenue parity using the same hypothetical 100-lot subdivision. Results were as follows using base fees of $2,500.00, $3,000.00, $4,000.00 and $5,000.00 respectfully: (1) 20 Years - $202,785, $243,341, $324,455, $405,504; and (2) 40 Years - $626,793, $752,152, $1,002,869, $1,253,586. The models indicate it would take a fee of over $5,000.00 to make up the difference. To achieve parity at the end of 40 years, it would take a fee of approximately $7,000.00. Mr. Perry explained that while most fees are not considered fair, this is one way to seek parity in support of basic City services. In essence, the fee is self-inflicted if one wants to annex for the purpose of urban development or City services. Absent some other uniform fee, this approach appears to be necessary to avoid having one set of property owners subsidizing services to another even more than Proposition 13 has created. It is the recommendation of staff that Council select a fee level and direct staff to prepare the necessary ordinance. Mayor Dahl stated that he would like the item continued for two weeks to receive input from the Shasta County Builders' Exchange and Shasta County Board of Realtors. MOTION: Made by Council Member Moss, seconded by Council Member Fulton, to continue the item regarding the establishment of a deferred annexation fee for two weeks. The Vote: Unanimous Ayes Council Member Moss requested that Council take the time and thoroughly review this item. He commented that staff did an excellent job on the presentation 128 03/17/92 and the figures are accurate. He stated that the establishment of the fee will determine if the City can continue to annex property in the future. Council Member Arness stated he has never had a good understanding of what the grants and subventions were per capita on annexations. He concurred that two weeks is probably the minimum amount of time needed to consider this issue. Council Member Moss indicated that two weeks will not make much of a difference if Council does not make an effort to understand the issues. Council Member Fulton related that the property tax exchange agreement agreed upon has left the City in a bad situation. He said that the City has lost the revenue to pay for police and fire services and is not sure where that funding is going to come from. He stated that he regrets having gone along with Council's previous decision concerning the property tax distribution. Mayor Dahl noted that the County of Shasta was not willing to make any compromises concerning the property tax exchange agreement. Council Member Carter stated that he will not be on Council when this matter is adopted; however, expressed concern over young people being able to afford homes. He indicated that he would like to see the fee spread out or districts established where services can be contracted. Council Member Moss indicated that it may be necessary for Council to have a special session in which this item would be the only topic of discussion. Mayor Dahl reiterated his desire to have input from the Shasta County Builders' Exchange and Shasta County Board of Realtors prior to the item being reconsidered in two weeks. RESOLUTION - Appropriating and Loaning Funds re New Corporation Yard RESOLUTION - Authorizing Contract with Dreyfuss and Blackford * (B-130-070 & C-050-100-040) Council Member Carter abstained from discussion and voting on this matter. Planning and Community Development Director Perry indicated that the consultants have completed schematic plans for the proposed Corporation Yard and street, utility, and grading plans. The next phase of the project is to obtain construction plans and specifications. Mr. Perry related that, as compared to the preconcept cost estimate, the initial deletion of Electric, Police, and Museum building uses represented about a $5,000,000.00 reduction in the project cost. The estimate, based on the schematic plan, represents a further reduction of another $2,000,000.00. As shown on the current cost estimate, there are still some unknowns in the areas of new equipment, moving expenses and fees and charges. Part of the costs shown will also have been prepaid prior to construction. In addition, another cost estimate will be done after completion of the construction plans. The current estimate includes an inflation escalation at the end and a 10 percent contingency. Mr. Perry stated that a proposal has been obtained from Dreyfuss and Blackford to complete building and engineering design based on a 6.5 percent architect's fees, or $782,000.00. Of this amount, $600,000.00 would be needed prior to awarding the bid. In order to obtain construction drawings, Council will need to budget funds, with the most likely source being Department rent payments for the new buildings. He noted that the source of funds for the Corporation Yard and the Civic Center accounts differ, as one is utility driven and the other is primarily out of General Fund sources. In essence, these are separate accounts and borrowing from one to benefit the other may have to be in the form of a loan. The $600,000.00 transfer could be repaid to the Civic Center account over time or as part of the project financing. He said that an alternative source of funds is the project asset fund, which currently has $625,000.00 from a recent land sale. Mr. Perry indicated that since the completion of the schematic drawings, it is staff's recommendation that the following occur: (1) The project be shifted westward to the intersection of Viking Way and Abernathy Lane; and (2) Completion of an overlay on Old Oregon Trail be dropped and that Abernathy Lane be improved to Tarmac Road. This will accomplish several things without any major redesign of the project: (1) The extra cost to improve Abernathy 129 03/17/92 Lane after reducing the costs to overlay Old Oregon Trail will pay for itself in one 130 03/17/92 year in less miles traveled and employee driving time; (2) Less grading will be required and the grade break across the property can be eliminated; and (3) Obtaining two points of access. Mr. Perry explained that the corporation yard is one project that is key to: (1) Other things happening on Parkview Avenue; (2) More efficient services; and (3) Planning ahead for the doubling of Redding's population over the next 25 years. It is, therefore, recommended that staff be directed to proceed and that the necessary resolutions adopting the budget amendment and authorizing the hiring of the architect for preparation of plans and specifications be adopted. It is further recommended that staff be directed to prepare a funding program for the project. He stated that the budget resolutions also include an additional $27,000.00 to pay off the balance of the schematic contract, as the account was also utilized for a property payment. In response to Council Member Moss, Mr. Perry clarified that total budget appropriations are $627,000.00, with $600,000.00 being for the plans and specifications and $27,000.00 to pay off the balance of the schematic contract. In response to Mayor Dahl, Mr. Perry stated that the funds noted in the budget resolution are coming from the Civic Center rental account. Finance Director Downing stated that these are monies which have been set aside for the Civic Center and the Corporation Yard. Mr. Perry stated that the loan from the Civic Center Account can be repaid from the project's financing and the property asset fund from land sale, which has approximately $150,000.00 to $200,000.00 in unallocated funds. Council Member Arness concurred with staff's recommendation to proceed with the preparation of the Corporation Yard's plans and specifications. Council Member Fulton concurred that the project is very worthwhile and supports staff's recommendation to proceed with the plans and specifications. Given the current economic condition, Mayor Dahl asked how much of the funding would be coming out of the General Fund; and, if the Corporation Yard and Civic Center projects were put on hold until the City regains some of its fiscal strength and stability, how much of these funds could revert to the General Fund to assist in balancing the budget. Ms. Downing indicated that approximately $400,000.00 of the Civic Center's designated funds would revert back to the General Fund. Mayor Dahl explained that if the City deferred the construction of the Civic Center and those funds were reimbursed to the General Fund and enterprise funds, the General Fund would realize approximately $400,000.00. City Manager Christofferson stated that the funds being appropriated are seen as a loan from whatever source they are being taken, to be recouped as soon as financing is established. Council Member Arness stated that the design of the project is almost timeless. If during budget study sessions Council decides not to proceed with the project in the upcoming fiscal year, the plans and specifications permit the next stage when funding is available. Mayor Dahl opined that it will not create any damage to defer the Civic Center and Corporation Yard projects for two to three years. He stated that an alternative to the crowding at City Hall might be to lease office space elsewhere on a short term basis. The City, however, is still struggling for a methodology for balancing this year's General Fund budget. There is money in the Civic Center account which can be utilized for assisting in balancing the General Fund. Council Member Fulton stated that the City is often criticized for lining up projects and then never developing them. He opined that delaying the projects for two or three years is not going to solve any problems. He concurred with Council Member Arness in proceeding with the project. Mayor Dahl opined that it is not prudent to proceed with the Corporation Yard project at this particular time and requested Council to defer both the Civic Center and Corporation Yards projects. 131 03/17/92 132 03/17/92 Council Member Moss explained that the money being spent on developing the plans and specifications for the Corporation Yard will not be wasted, as it provides a valuable tool for future use. To delay the project now would not accomplish anything except spending money on a product which has not produced a material product. MOTION: Made by Council Member Arness, seconded by Council Member Moss, that Resolution No. 92-113 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 66th amendment to the City Budget Resolution No. 91-253 (1) appropriating $627,000.00 for engineering and design work for the new Corporation Yard; (2) Loaning $360,000.00 from the General Fund Capital Project Fund to the Development Fund (General City projects); and (3) Loaning $267,000.00 from the Civic Center Account to the Corporation Yard Account. Voting was as follows: Ayes: Council Members - Arness, Fulton and Moss Noes: Council Members - Dahl Absent: Council Members - None Abstain: Council Members - Carter Resolution No. 92-113 is on file in the office of the City Clerk. MOTION: Made by Council Member Arness, seconded by Council Member Moss, that Resolution No. 92-114 be adopted, a resolution of the City Council of the City of Redding approving and authorizing the Mayor to execute a contract with Dreyfuss and Blackford to prepare the plans and specifications for the new corporation yard, based on a 6.5 percent architect's fee. Voting was as follows: Ayes: Council Members - Arness, Fulton and Moss Noes: Council Members - Dahl Absent: Council Members - None Abstain: Council Members - Carter Resolution No. 92-114 is on file in the office of the City Clerk. RESOLUTION - Appropriating Funds for Acquisition of Southwest Oregon Gulch Property * (B-130-070 & C-070-010) Planning and Community Development Director Perry recalled that in July, Council directed that an appraisal be obtained on the 150 acres managed by the Bureau of Land Management (BLM) in the Southwest Oregon Gulch. He indicated that the City owns the 200 acres to the east, and once assembled, the City has the three key properties to create an intake canyon area for a landfill if one is needed. Acquisition of this property also precludes residential development on the properties. Mr. Perry stated that an appraisal has been received which values the property at $248,000.00 or $1,650.00 per acre, assuming that 96 acres are undevelopable and the remaining 54 acres are developable. He explained that the BLM does not want to sell the land directly to the City because the money would leave the local BLM District. As an alternative, a three-way exchange agreement has been proposed in order to obtain land on the Trinity River from Mr. Dan Tucker. Mr. Perry indicated that legislation has recently been introduced which requires local jurisdictions to develop plans for future landfill sites and this can be a stepping stone in developing these plans. It is the recommendation of staff that Council seek acquisition of the property and that staff be directed to prepare an exchange agreement for consideration. It addition, it also recommended that EIR-3-88, Texas Spring Area Plan EIR, be certified as adequate for acquisition purposes only and that a resolution appropriating $252,000.00 from the Solid Waste Division for acquisition of the property be adopted. In response to Council Member Fulton, Mr. Perry indicated that Council's acquisition of this property does not precondition the property's use to be that of a landfill. In response to Council Member Carter, General Services Director Masingale stated that the estimated life of the current joint landfill is estimated at 133 03/17/92 30 years based on current inflow, however, the mandated recycling goals can stretch that to approximately 40 or 50 years. MOTION: Made by Council Member Carter, seconded by Council Member Moss, to seek acquisition of the Southwest Oregon Gulch property, direct staff to prepare a three-way exchange agreement with the Bureau of Land Management (BLM) and Mr. Dan Tucker for Council consideration, and certify EIR-3-88, Texas Springs Area Plan EIR, to be adequate for acquisition purposes only. The Vote: Unanimous Ayes MOTION: Made by Council Member Carter, seconded by Council Member Moss, that Resolution No. 92-115 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 71st amendment to City Budget Resolution No. 91-253 appropriating $252,000.00 for acquisition of property in the Southwest Oregon Gulch. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton, Moss and Dahl Noes: Council Members - None Absent: Council Members - None Resolution No. 92-115 is on file in the office of the City Clerk. COST OF COMMISSIONS (B-080) Planning and Community Development Director Perry presented Council with a report outlining the cost of City Commissions and Committees, as indicated in the Report to City Council dated March 6, 1992, incorporated herein by reference. MOTION: Made by Council Member Fulton, seconded by Council Member Arness, to utilize the Report to City Council, dated March 6, 1992, outlining the cost of City Commissions/Committees, as a budget tool. The Vote: Unanimous Ayes Mayor Dahl complimented Mr. Perry on a well-prepared report. REDDING COMMUNITY ACCESS CORPORATION - re 1992-93 Budget (T-040-350-200) Planning and Community Development Director Perry recalled that according to the terms of the Public Access Agreement with Viacom, the budget for the Community Access Channel is to be approved by Council by June of each year. The budget is to be prepared in March of each year for the following fiscal year. The Public Access Agreement also stipulates that the City of Redding will provide up to 20 percent of the franchise fee paid to the City by Viacom; and for every dollar provided by the City, Viacom will match by providing one dollar of monetary support up to 20 percent of the franchise fee paid to the City for public access. Mr. Perry indicated that at its regular meeting of March 2, 1992, the Redding Community Access Corporation recommended approval of its 1992-93 budget to City Council. It is recommended that Council approve the draft budget, which will initiate the setting aside of funds for the channel. MOTION: Made by Council Member Fulton, seconded by Council Member Carter, to approve the 1992-93 Draft Budget for the Redding Community Access Corporation. The Vote: Unanimous Ayes GENE HILL - Offer to Sell City Land on Churn Creek (C-070-010) Planning and Community Development Director Perry recalled that Council directed staff to obtain an appraisal on property on Churn Creek which Gene Hill has offered to sell to the City and to apply to the State for matching funds to acquire the property. The grant application has been filed, and if approved, notice to the City would be given in July, 1992; and money could be received by July, 1993. Mr. Perry stated that the appraisal values the property at $53,000.00. After reviewing the appraisal, Mr. Hill submitted a proposal which would enable the City to seek State funding for one-half of the purchase price. In summary, Mr. Hill is requesting the following occur if the land is to be tied up for 15 to 16 months: (1) Sales price is $53,000.00; (2) 10 percent, nonrefundable deposit if purchase falls through; (3) City to pay its share of purchase price if State approval is given by August 31, 1992; (4) Balance to be paid 134 03/17/92 by July 31, 1993; (5) City to pay 9 percent interest on unpaid portion after July 31, 1992; and (6) City to pay property taxes from the date of the agreement to the close of escrow. 135 03/17/92 Mr. Perry indicated that the report is generally workable except that the State will not give credit for any funds expended prior to July, 1993, thus the grant application, rather than being for one-half of the cost of the property would be for one-fourth of the cost. This essentially leaves four options: (1) Buy the property now, using in-lieu park fees or park- development fees; (2) Borrow money from a third party, such as the Redevelopment Agency or Housing Authority, at a fair interest rate, with the understanding that if a competitive grant application is not approved, the City would buy the property; (3) Seek a lease/purchase agreement with the Hills, whereby the City leases the property for two years at 10 percent of the land value and then purchase the property at the end of two years; and 4) Not acquire the property. It is the recommendation of staff that the City acquire the property using a third party. If Council concurs, the matter should be referred to the Redevelopment Agency with the indication that the City would like to enter into an agreement with the understanding that if a competitive grant application is not approved, the City would purchase the property. In response to Council Member Arness, Mr. Perry indicated that if the property is not acquired, the City might not be able to close the park at night, etc. In addition, acquisition of the property would prevent the property from being developed and ties it into already existing City-owned property. In response to Council Member Moss, Mr. Perry replied that the State does not view borrowing the money from the Redevelopment Agency or the Housing Authority as subterfuge. MOTION: Made by Council Member Moss, seconded by Council Member Carter, to refer the offer by Gene Hill to sell land on Churn Creek to the Redding Redevelopment Agency, with the understanding that if a competitive grant application is not approved, the City would purchase the property. The Vote: Unanimous Ayes RESOLUTION - Abandonment Application A-4-91, Enterprise Realty - Abandoning Portion of Twin View Boulevard (A-010-100) Planning and Community Development Director Perry recalled that Council, at its August 6, 1991, meeting, approved Abandonment Application A-4-91 in concept. The request concerns a portion of a 33-foot by 300-foot section of right-of-way adjacent to 955 Twin View Boulevard. As a requirement for abandonment, several conditions were placed on the final adoption of the resolution. Staff has reviewed the conditions in conjunction with a field visit and is satisfied that all conditions have been met and are in compliance with the intentions to vacate. It is the recommendation of staff that the Negative Declaration be ratified and the resolution of abandonment adopted. MOTION: Made by Council Member Moss, seconded by Council Member Fulton, that Council make the following findings regarding Abandonment Application A-4-91: 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 June 5, 1991. The Vote: Unanimous Ayes MOTION: Made by Council Member Moss, seconded by Council Member Fulton, that Resolution No. 92-116 be adopted, a resolution of the City Council of the City of Redding ordering the vacation and abandonment of a 33-foot by 300-foot section of the Twin View Boulevard right-of-way adjacent to 955 Twin View Boulevard (on the east side of Twin View Boulevard between State Highway 273 and Interstate 5) (A-4-91). Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton, Moss and Dahl Noes: Council Members - None Absent: Council Members - None Resolution No. 92-116 is on file in the office of the City Clerk. 136 03/17/92 PLANNING AND COMMUNITY DEVELOPMENT MONTHLY STATUS REPORT (A-050-250) Planning and Community Development Director Perry submitted the Monthly Status Report through February, 1992, for the following work areas: (1) Annexations; (2) Planning and Zoning; (3) Building and Population; (4) Housing Assistance; (5) Redevelopment Agency; and (6) Cable. This was an information item and no action was required. RESOLUTION - Amending Annexation Agreement with Harrel and Louis Davis re Annexation 90-15, Tierra Oaks (A-150-237) Council Member Moss abstained from discussion and voting on this item. Planning and Community Development Director Perry explained that Annexation 90-15, Tierra Oaks, is scheduled for consideration by Shasta LAFCO at its March 26, 1992, meeting. During its review of the application, LAFCO staff raised specific concerns related to prezoning the property and sewer connection opportunities to other properties included in the annexation boundary, but outside the Tierra Oaks Estates Subdivision. The 514-acre Tierra Oaks Estates Subdivision and Golf Courses does not have a Redding General Plan classification or City zoning. LAFCO policy requires prezoning of the property unless an area or specific plan has been adopted by the City. The City has argued that since the County has approved a tentative subdivision map on the property, the City must accept upon annexation, the property has essentially been zoned. LAFCO staff will not support that argument, but will support waiver of the prezoning requirement if the City agrees to enforce the conditions of the "PD" Planned Development zoning adopted by the County for the subdivision. The conditions of the zoning ordinance are also reflected in the conditions of approval of the tentative subdivision map, which under State law, the City is obligated to accept upon annexation. In order to resolve the issue, the developer has agreed to apply for a General Plan amendment and rezoning for the Tierra Oaks development upon annexation that will reflect the County approvals. Mr. Perry stated that LAFCO staff is also concerned that properties included in the annexation, but outside the Tierra Oaks development, do not have the opportunity to connect to the interim sewer system that will serve the subdivision and golf course. The owners do not object to the other area property owners connecting to the system improvements, as long as they pay their pro rata share of the improvement design and construction costs and annual maintenance costs identified in the Annexation Agreement. It is also important that the property owners express their desire to participate early in the design process since they will not be allowed to connect directly to the force main after construction of the system. City staff does not object to permitting the other owners to connect to the system and recommends that they be granted the option to connect subject to payment of all fees and charges identified in the Agreement. Mr. Perry explained that another issue is fire protection. In September, 1991, LAFCO approved the annexation of the area to the Central Valley Fire Protection District (CVFPD) and endorsed the concept of detaching the area from CVFPD as it annexes to the City of Redding. In order to help support the City's request that LAFCO detach the area from CVFPD, the owner has agreed to dedicate a three acre fire station site in the southwest portion of the development adjacent to Moody Creek and Old Oregon Trail. In order to show a strong commitment to providing fire protection in the area, staff recommends that the City agree to construct the station within seven years of the annexation or upon completion of the 143rd dwelling unit, whichever occurs first. The 143rd units represents 75 percent of the approved 191 units. Tying the construction of the station to the number of units insures fire protection in the area when it is needed. If the City does not take an aggressive position towards providing fire protection in the area, it is doubtful that LAFCO will require detachment from the CVFPD. It is the recommendation of staff that Council adopt a resolution approving the Second Amendment to the Annexation and Development Agreement with Harrel and Louise Davis. MOTION: Made by Council Member Carter, seconded by Council Member Fulton, that Resolution No. 92-117 be adopted, a resolution of the City Council of the 137 03/17/92 City of Redding approving the Second Amendment to Annexation and Development Agreement dated March 17, 1992, relating to a fire station, other property owners connecting to the sewer system, and the General Plan Amendment and Zoning, between the City of Redding and Harrel Davis and Louise Davis, and authorizing the Mayor to sign on behalf of the City. 138 03/17/92 Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton and Dahl Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Moss Resolution No. 92-117 is on file in the office of the City Clerk. SULPHUR CREEK - Request for Study re Restoration Work (R-200) Planning and Community Development Director Perry stated that the River and Waterways Commission at its February 13, 1992, meeting moved to request Council to authorize a task force of people in the community to discuss the need, feasibility, and potential outcome of doing restoration work on Sulphur Creek. The consensus of thought is that restoration work on Sulphur Creek would enhance the fishery and riparian habitat. Essentially, the goal is to develop a plan on restoring Sulphur Creek from the Sacramento River to near Keswick Dam Road. He indicated that a separate request has also been submitted to the Redevelopment Agency as a property owner of the Benton Ranch. Mr. Perry explained that the Redding General Plan classified the 100-year floodplain on Sulphur Creek and slopes along the creek in excess of 20 percent as greenway. In addition, Council has adopted interim stream-protection policies to provide buffer areas along the 100-year floodplain. Based on the General Plan, the City has acquired open-space dedication and easements with new subdivisions to preserve the open space to facilitate a future trail and reduce erosion and sedimentation. Mr. Perry stated he did not see any need for a study to duplicate what the City has already accomplished; however, areas it could focus on are fisheries, water quality, an alignment for the trail, filtering ponds, funding sources, etc. If Fish and Game participates, the study will probably occur, regardless; however, it is the City that would implement any portion pertaining to open-space and park dedications or trails. He related that he does not foresee the City having the ability to provide staff or funding for the study. MOTION: Made by Council Member Moss, seconded by Council Member Fulton, to authorize the study regarding restoration work on Sulphur Creek with the understanding that the City will not provide any funding or staff. The Vote: Unanimous Ayes ORDINANCE - re Rezoning Application RZ-10-91, by B & L Development (Lake Boulevard, immediately south of Glenwood Drive) (L-010-230) Planning and Community Development Director Perry recalled that Council approved Rezoning Application RZ-10-91, by B & L Development, in concept and directed staff to prepare an ordinance to implement the zoning change. The area to be rezoned consists of approximately 4.78 acres and is located on both side of Lake Boulevard, immediately south of Glenwood Drive. This request was considered in conjunction with General Plan Amendment GPA-13-91; however, the Planning Commission determined that the rezoning request did not require a General Plan amendment to accommodate the development proposed for nine duplexes and two fourplexes. It is the recommendation of staff that Council offer the ordinance for first reading. Council Member Moss offered Ordinance 2001 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 to "RM-6" Multiple Family Residential District and "R2- B10" Duplex Residential District (RZ-10-91). CERTIFICATION OF LOCAL APPROVAL FOR TRANSITIONAL HOUSING FACILITY (G-150-170) Planning and Community Development Director Perry explained that the State of California Department of Housing and Community Development is requesting proposals for funding authorized by the Federal Homeless Housing Act. These funds are available to cities, counties and nonprofit organizations which apply for money to rehabilitate and operate shelters for the homeless. 139 03/17/92 140 03/17/92 Mr. Perry stated that the Shasta Housing Development Corporation, a local nonprofit organization which provides transitional housing to homeless families in Shasta County, currently operates two transitional facilities, the Knotty Pine Motel and a four-unit complex at 705 Parkview Avenue and is acquiring an additional six-unit complex at 657 Parkview Avenue. Shasta Housing Development Corporation is requesting funds from the State of California to be used for operating costs and supportive services for these Transitional Housing Facilities. In order for Shasta Housing Development Corporation to complete the grant application, it is necessary for Council to give approval to this project and that a Certification of Local Approval be filed with the application for funding. The Planning Department has determined that the transitional facilities at 705 and 657 Parkview Avenue are in compliance under the current zoning of the General Plan. It is the recommendation of staff that Council approve the Shasta Housing Development Corporation Transitional Housing Facilities at the Parkview locations and authorize the City Manager to sign the Certifications of Local Approval necessary to the State grant application. MOTION: Made by Council Member Moss, seconded by Council Member Arness, to approve the Shasta Housing Development Corporation Transitional Housing Facilities at 705 and 657 Parkview Avenue and authorize the City Manager to sign the Certifications of Local Approval necessary to the State grant application. The Vote: Unanimous Ayes At the hour of 9:08 p.m., Mayor Dahl declared the meeting recessed. At the hour of 9:12 p.m., Mayor Dahl declared the meeting reconvened to regular session. RESOLUTION - Approval of MLP Energy (IPT) Development Agreement for the Procurement and Construction of Combustion Turbines RESOLUTION - Approval of the Various Financing Documents Necessary to Complete the Electric System Revenue Certificates of Participation, Series 1992A (D-050-250-005 & E-120-300-700) Electric Utility Director Lindley recalled that Council approved a Letter of Intent (LOI) with Industrial Power Technology (IPT) for the purchase of a combustion turbine project and directed staff to proceed to develop a definitive agreement. During the development of the definitive agreement, IPT requested that MLP Energy be a principal party to the agreement, with IPT guarantying the performance of MLP Energy. Staff, with the assistance of Black & Veatch, has completed drafting the "Agreement for the Development of a Peaking Power Generation Project by and Between the City of Redding and MLP Energy." Under the terms of the Continuing Guarantee which has been executed by IPT, IPT is responsible for the performance of MLP Energy. Importantly, the terms of the Development Agreement provide the City more benefit, at less risk, than the terms of the LOI. Mr. Lindley indicated that Council approved the purchase of the Redding Power Plant on May 31, 1991, and acknowledged that additional funding would be required to modify the Project and to construct the associated substation and gas facilities. On December 11, 1991, Council directed staff to arrange for the joint financing needed to complete the Redding Power Plant and to purchase a combustion turbine project. Mr. Lindley related that there is still a question regarding the gas pipeline, however, Liquified Petroleum Gas (LPG) is available for usage if necessary. He stated that staff projects that the present value, ten-year net benefit will approximate $31,000,000.00, and will result in electric rates approximately 5 percent lower than they would be without the IPT and Redding Power Projects. In addition, the projects are expected to benefit the City's citizens by providing approximately $600,000.00 annually to the City's General Fund. It is the recommendation of both the Electric Utility Commission and staff that Council adopt resolutions which approve the Development Agreement and authorize the Mayor to execute the same; approve the Installment Sale Agreement; approve the Trust Agreement; approve the Preliminary Official Statement; approve the Purchase Agreement; establish certain conditions precedent for the proposed financing; and authorize the execution and delivery 141 03/17/92 of the financing documents which are not to exceed a principle amount of $77,000,000.00 and a maximum True Interest Cost of 6.85 percent. In response to Council Member Fulton, Mr. Lindley stated that the use of LPG gas is common in the rural areas of Shasta County. In addition, the contract has always required back-up storage facilities for LPG under such circumstances as natural gas would not be available. In response to Council Member Arness, Mr. Lindley replied that the noise criteria for the project is to be established by the City's Planning Department and the developer has agreed to comply with those requirements. MOTION: Made by Council Member Moss, seconded by Council Member Arness, that Resolution No. 92-118 be adopted, a resolution of the City Council of the City of Redding approving the form and authorizing the execution and delivery of a 1992 Installment Sale Agreement, a Trust Agreement, a Certificate Purchase Agreement and an Official Statement and approving the distribution of a Preliminary Official Statement 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, Moss and Dahl Noes: Council Members - None Absent: Council Members - None Resolution No. 92-118 is on file in the office of the City Clerk. MOTION: Made by Council Member Moss, seconded by Council Member Arness, that Resolution No. 92-119 be adopted, a resolution of the City Council of the City of Redding approving and authorizing the Mayor to sign the "Agreement for the Development of a Peaking Power Generation Project" by and between the City of Redding and MLP Energy for the procurement and construction of combustion turbines. Voting was as follows: Ayes: Council Members - Arness, Carter, Fulton, Moss and Dahl Noes: Council Members - None Absent: Council Members - None Resolution No. 92-119 is on file in the office of the City Clerk. AWARD OF BID - Bid Schedule No. 2555, Paid Parking Contractor at Redding Municipal Airport (B-050-100 & P-030-300 & A-090-100) Airports Director Ruff recalled that Council authorized staff to pursue the implementation of paid parking at Redding Municipal Airport through the Request for Proposal (RFP) process. On January 6, 1992, the RFP was issued to the six pre-qualifiers and a pre-proposal conference and on-site inspection visit was conducted with attendance mandatory for those who wished to submit a proposal. All six prequalifiers attended; however, only five proposals were submitted for opening on February 28, 1992. Mr. Ruff stated that the results of the RFP process have exceeded staff's expectations. Three of the proposals were very high in terms of professionalism, comprehensiveness and an understanding of Redding Municipal Airport and the area. Implementation of this program will provide an excellent source of revenue to assist the Airports in becoming independent from the General Fund and provide a far better balance between other rate payers. Mr. Ruff indicated that the Evaluation Team is recommending that the proposal be awarded to Republic Parking Systems, as it is highly beneficial to the City. In addition, their revenue, financial package and implementation program are very well planned. Republic's proposal is based upon a most reasonable daily rate which caps out at $3.50 per day with adjustments to a $4.00 per day cap following the first year of operation. It is the recommendation of staff that Bid Schedule No. 2555, paid parking contractor at Redding Municipal Airport, be awarded to Republic Parking Systems and direct staff to negotiate the necessary agreement which would be finalized and executed at a later date. In response to Council Member Arness, Mr. Ruff replied that from the onset of this process, it has been the City's full intention to offer a validation 142 03/17/92 program which will provide parking service to the restaurant customer and will be part of the contract negotiations. 143 03/17/92 Council Member Carter asked what arrangements have been made for someone picking up a passenger at the airport. Mr. Ruff stated that it is staff's intent to have the curb in front of the terminal marked "loading and unloading only" and the rate structure indicates that the charge for the first 20 minutes of parking is only $0.25. This provides an opportunity for someone to either load and unload, or to park their car for a nominal fee. Council Member Carter inquired as to the Airports Commission's general consensus. Airports Commissioner Mistal stated that it was a unanimous vote in favor of awarding the bid to Republic Parking. In response to Council Member Fulton, Mr. Ruff indicated that Republic has guaranteed the City will receive a minimum of $40,000.00 the first year, $50,000.00 in the second and third years, and $55,000.00 in all succeeding years, with a five year term and option to renew for five years based on performance. In addition, Republic will be coming into the operation with a $115,000.00 up-front capital investment, all of which will vest to ownership of the City upon commencement of operation, with Republic responsible for the operation and maintenance of the equipment. MOTION: Made by Council Member Moss, seconded by Council Member Arness, that Bid Schedule No. 2555, paid parking contractor at Redding Municipal Airport, be awarded to Republic Parking Systems and direct staff to negotiate the necessary agreement for finalization and execution at a later date. The Vote: Unanimous Ayes LAND YACHTS LIMOUSINES COMPANY - Request to Lease Space at Redding Municipal Airport (C-070-100 & A-090-100) Airports Director Ruff related that Mr. John Castellanos, of Land Yachts Limousines Co., has requested approval to establish a limousine service at the Redding Municipal Airport and for renting terminal space from which to conduct this business. This activity represents a proper use of airport facilities and can provide a valuable service to the traveling public. It is the recommendation of both the Airports Commission and staff that Council direct staff to negotiate and finalize a terminal lease agreement and operating permit with John Castellanos dba Land Yachts Limousines Co. to establish and operate a full-time limousine service in and from the Redding Municipal Airport passenger terminal, and to bring said agreement and permit back to Council for final approval. MOTION: Made by Council Member Fulton, seconded by Council Member Moss, to direct staff to negotiate and finalize a terminal lease agreement and operating permit with John Castellanos dba Land Yachts Limousines Co. to establish and operate a full-time limousine service in and from the Redding Municipal Airport passenger terminal and to bring said agreement and permit back to Council for final approval. The Vote: Unanimous Ayes TRANSFER STATION - Siting Study (S-020-650) General Services Director Masingale recalled that Council at its September 3, 1991, meeting indicated that an additional site on Clear Creek Road should be considered for the transfer station. This site is a 40 acre parcel owned by the County of Shasta. On November 5, 1991, Council authorized additional contracts for the Clear Creek site: (1) $37,570.00 to McClelland to complete a Siting Study and EIR; and (2) $16,584.00 to Lawrence and Associates to complete an Environmental Site Assessment. Further, Council authorized the City to enter into negotiations with the County of Shasta to use the Clear Creek property for the siting of a Transfer Station Facility. Mr. Masingale explained that when attempting to carry out Council's request, the following problems were encountered: (1) There would be extensive costs associated with providing sewer service to the facility, which is 2.6 miles from the nearest trunk line; (2) Moving the graveyard may be a difficult task, as it is currently located near the center of the property; (3) High ground-water makes it difficult to design the subway system; and (4) Because of past usages, Shasta County Department of Public works wants the City of Redding to accept the responsibility for any needed mitigation. He stated that because the foregoing could be very expensive, Council may wish to re- examine its options. 144 03/17/92 Mr. Masingale indicated that the Electric Utility Department has been contacted to determine if the Transfer Station/Materials Recovery Facility (MRF) could be located at the Electric Utility's location on Clear Creek Road. Because of the uncertainties of the Electric Utility's future activities, it is reluctant to commit a large piece of land for siting the Transfer Station without first preparing a long-range site plan. The Planning Department has also contacted J. F. Shea and determined that they are not interested in selling property in the vicinity of Redding Power. Mr. Masingale related that the original study included the siting of a RABA facility which is no longer being considered. In addition, staff has reviewed dividing the Transfer Station/MRF operation into two distinctive components, composting in one area and the remaining operations in another. Therefore, other sites will be available due to the "split siting concept." The economics under this scenario would not be as great as they would be under the combined concept; however, if this concept allows a significant reduction in vehicle miles traveled (VMT), it might be worth separating the functions. He commented that three major cost components of siting and operating a transfer station are: (1) cost of land; (2) cost of construction; and (3) vehicle miles traveled. It is staff's recommendation that Council authorize staff to hire a consultant to re-evaluate the sites originally selected to determine if any of the sites originally ruled out of the first siting study because of inadequate size may, under a new scenario, be adequate. Council Member Moss asked if any progress had been made with the County of Shasta regarding the establishment of a joint transfer station. Mr. Masingale replied that staff has not pursued the concept of a joint transfer station with the County of Shasta. Council Member Moss opined that the issue of a joint transfer station has been brought up several times and related that conversations with Mr. Curry indicate it is an option which the County is willing to consider. Council Member Arness concurred with Council Member Moss. Mayor Dahl suggested that staff contact the County of Shasta to determine if it is interested in a joint transfer station and return to Council with a report in two weeks. Mr. Masingale indicated that he would contact the County. He related that the contract hauler for the County is also the owner of Clayton-Ward, thereby providing the County with its own recycling facility. In response to Council Member Arness, Mr. Masingale indicated that Linden Canyon would be one of the sites involved in the re-evaluation process. Council Member Moss stated that Council is having a difficult time determining one site, let alone two separate sites. He indicated that he is of the opinion that with the annexations occurring in the Clear Creek Road area, sewer facilities would eventually be available in the area; therefore, he does not see sewer service being a problem in the establishment of a transfer station in the Clear Creek area. In response to Council Member Carter, Mr. Masingale indicated that there are approximately 28 trucks making daily trips to the landfill. Once the transfer station is developed, all trucks, other than those with drop boxes, will go directly to the transfer station. Council Member Moss expressed concern over the Clear Creek area being dropped from consideration as it has many positive benefits. It was the consensus of Council to direct staff to contact the County of Shasta regarding the possibility of developing a joint transfer station and to provide a cost estimate for a consultant to re-evaluate the original sites. AWARD OF BID - Bid Schedule No. 2576, Laundry Services (B-050-100 & C-050) 145 03/17/92 General Services Director Masingale related that two bid proposals were received in conjunction with Bid Schedule No. 2576, laundry services. Mission Services was the low bidder with an estimated weekly total of $505.46, which is less than the current contract amount. Over a three-year contract period, the difference between Mission Services' bid estimate, $78,851.76, and that of Aratex Services, $88,650.12, would be $9,798.36. Mission Services has offered to extend the three-year contract without a cost increase. Aratex Services requires a 6 percent increase to extend the three-year contract. Mission Services also offered a 5 percent discount for payments received within 20 days of receipt of billing. It is the recommendation of staff that Council award the bid to Mission Services at a weekly total cost of $505.46. Sufficient funds for laundry services are included in the 1991-92 budget and will be a budget expense in 1992-93. Bert Aarsen, General Manager of Aratex Services, related that the difference between the two bids is $45.00 per week. He asked Council to consider the fact that his firm has provided service to the City of Redding for over 25 years and has always placed importance on accessibility and quick response. He explained that many of the City of Redding employees drop their uniforms off at their facility on Butte Street. In addition, when the linen requirements at the fire departments change, his firm prides itself in usually providing the necessary liners within an hour. Another issue he requested Council to consider was Aratex utility charges. If their business declines, their utility charges will decline and the flat rate charges will need to be reconsidered. In addition, Aratex operates out of Redding and employs approximately 60 employees and the loss of this contract will affect his employee base. He asked Council to carefully consider these issues before awarding the bid. Mr. Masingale explained that all the proper purchasing procedures have been followed, with Mission Services providing the low bid proposal. He also indicated that the award of bid to Mission Services will bring to a close a 25 year relationship with Aratex Services. Council Member Fulton asked Mr. Masingale if staff was discounting the firm's 25 years of service to the City. Mr. Masingale replied that Aratex was not the low bidder. Mayor Dahl asked what legal basis could be used to overturn the bid. City Attorney Hays indicated that he has not been consulted on this particular issue. He stated that the City's normal bidding process provides that the bid be awarded to the lowest responsible bidder. He said that Aratex's letter of February 26, 1992 quotes a provision which was included in the City's cover letter stating that "...the City may select any bid which, in their sole judgement, best serves the City's needs regardless of the price." He commented that he is not sure why this particular language was included in the bid and he would need time to research the matter further. Mr. Masingale stated that Aratex has agreed to continue service on a month-to- month basis until a decision is made. MOTION: Made by Council Member Moss, seconded by Council Member Carter, to continue consideration on the award of Bid Schedule No. 2576, laundry services, for two weeks to allow the City Attorney sufficient time to consider the legal implications of not awarding the bid to the low bidder. The Vote: Unanimous Ayes REDDING BREAKFAST LIONS CLUB - Request to Sell Alcoholic Beverages on the Convention Center Lawn in Association with the Jazz Festival (A-110-100) City Clerk Strohmayer related that the Redding Breakfast Lions Club has requested permission to sell alcoholic beverages on the Convention Center Lawn, in conjunction with the Jazz Festival, on April 3, 1992, from 3:00 p.m. to 8:00 p.m, and April 4, 1992, from 12:00 Noon to 8:00 p.m. This request has the approval of the Chief of Police with the understanding selling and consumption of alcoholic beverages will be confined to a fenced location on the north lawn area of the Convention Center. It is the recommendation of 146 03/17/92 staff that Council approve this request subject to the acquisition of liquor liability insurance. MOTION: Made by Council Member Fulton, seconded by Council Member Carter, authorizing the Redding Breakfast Lions Club to sell alcoholic beverages on the Convention Center Lawn, in conjunction with the Jazz Festival, on April 3, 1992, from 3:00 p.m. to 8:00 p.m, and April 4, 1992, from 12:00 Noon to 8:00 p.m., subject to the acquisition of liquor liability insurance. Voting was as follows: Ayes: Council Members - Carter, Fulton, Moss and Dahl Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Arness ELIGIBILITY FOR SERVICE ON CITY COMMISSIONS (B-080) City Attorney Hays related that Mayor Dahl, in his State of the City message, indicated that he would like to see membership eligibility to serve on City commissions broadened. Currently, membership on a commission is limited to those who are residents of the City of Redding. The ordinance before Council this evening, at the request of Mayor Dahl, broadens the eligibility requirements to those individuals who are residents, business owners, or property owners in the City of Redding. Mayor Dahl requested that the membership requirement be amended to read, "residents, business owners, or employed within the City of Redding." Council Member Arness opined that Planning Commissioners should be residents of the City, as it is the only commission which does not strictly serve in an advisory capacity. He questioned if the number of out-of-City commissioners should be quantified. Mr. Hays stated that if would be difficult to quantify the number of out-of- City commissioners. Council Member Moss disagreed with Council Member Arness and indicated that there have been times, because of the Planning Commission's importance, when it has been difficult to find a qualified candidate, and he likes the concept of having a larger candidate pool. Noting Mayor Dahl's amendment, Council Member Moss offered Ordinance 2002 for first reading, an ordinance of the City Council of the City of Redding amending various sections of Redding Municipal Code Title 2, Administration and Personnel, pertaining to the appointment of members to various commissions. ROUTINE REPORTS AND COMMUNICATIONS Alcoholic Beverage License Applications (A-110-140) The Cabral House on Chestnut Bed & Breakfast (Cabral, Ann M. & Louis A.) 1752 Chestnut Street ADJOURNMENT There being no further business, at the hour of 10:05 p.m., Mayor Dahl declared the meeting adjourned. APPROVED: _________________________________ Mayor ATTEST: ______________________________ City Clerk 147 03/17/92