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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1993-01-191 01/19/93 City Council, Regular Meeting City Council Chambers Redding, California January 19, 1993 7:00 p.m. The Pledge of Allegiance to the Flag was led by City Attorney Hays. The Invocation was offered by Pastor Benjamin Pent, Westside Church. The meeting was called to order by Mayor Moss with the following Council Members present: Anderson, Arness, Dahl, Kehoe and Moss. Also present were City Manager Christofferson, Assistant City Manager McMurry, Director of Public Works Galusha, Director of Electric Utility Lindley, Director of Planning and Community Development Perry, Chief of Police Blankenship, Director of Community Services Gorman, Director of Finance Downing, Director of Information Systems Kelley, Senior Planner King, Airports Director Ruff, City Clerk Strohmayer and Secretary to the City Council Rudolph. CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Minutes - Adjourned Regular Meeting of December 21, 1992 Regular Meeting of January 5, 1993 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 13, check number 189050 through 189449 inclusive, in the amount of $1,597,823.96, be approved and paid, and Payroll Register No. 14, check numbers 350026 through 351462 inclusive, in the amount of $903,239.25, and Automatic Payroll Deposits, check numbers 14384 through 14552 inclusive, in the amount of $244,305.90, for a total of $1,147,545.15, for the period of December 20, 1992 through January 2, 1993, be approved. TOTAL: $2,745,369.11 Treasurer's Report - December, 1992 (A-050-100-600) Total Treasurer's Accountability- $ 42,074,412.87 Total City of Redding Funds, Funds Held in Trust and Funds of Related Entities- $106,584,608.57 Monthly Financial Report - December 1992 (B-130-070) It is the recommendation of the Director of Finance that the December 1992 Monthly Financial Report be accepted. Comprehensive Annual Financial Report (F-205-150-075) It is the recommendation of the Director of Finance that the City of Redding's Comprehensive Annual Financial Report for the fiscal year ended June 30, 1992 be accepted. Planning and Community Development Monthly Status Report (A-050-250) It is the recommendation of the Planning and Community Development Director that the Monthly Status Report through December 1992 for the following work areas be accepted: (1) Annexations; (2) Zoning, Subdivisions, and General Plan Amendments; (3) Building and Population; (4) Housing Assistance and Rehabilitation; and (5) Redevelopment. Set Public Hearing - re General Plan Amendment Application GPA-16-92, by the City of Redding (South of Viking Way and east of Abernathy Lane) (G-030-010) It is the recommendation of the Planning and Community Development Director that a public hearing be set for 7:00 p.m., February 2, 1993, to consider 2 01/19/93 GPA-16-92, a request to reclassify 111 acres from "Service Commercial" and "Residential, 9.0 units per acre" to "Industrial" and "Public/Institutional." Set Public Hearing - re General Plan Amendment Application GPA-13-92 and Rezoning Application RZ-21-92, by North Central Development (3584 through 3700 Railroad Avenue) (G-030-010 & 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., February 2, 1993, to consider GPA-13-92, a request to amend the General Plan from "Residential, 6.0 units per acre" to "Residential, 9.0 units per acre" and RZ-21-92, a request to reclassify the property from "RM-6-F" Multiple-Family Residential District to "RM-9-F" Multiple-Family Residential District. Resolution - re South of Tesla Agreement between the Transmission Agency of Northern California and Its Members (E-120-250) It is the recommendation of the Electric Utility Director that Resolution No. 93-17 be adopted, a resolution of the City Council of the City of Redding approving the City of Redding entering into the South of Telsa Agreement by and among the Transmission Agency of Northern California and its members; and authorizing the Mayor to sign. Funding requirements are included in the Electric Utility economic projections and will be included in subsequent years' budget requests as necessary. Resolution - re Authorizing Staff to Sell, Purchase, or Exchange Short-Term Power (E-120) It is the recommendation of the Electric Utility Director that Resolution No. 93-18 be adopted, a resolution of the City Council of the City of Redding authorizing Electric Utility staff to purchase, sell, and exchange short-term power, and the City Manager to execute the various contracts upon approval of the City Attorney. Resolution - Approving Amendments to Lease Agreement and Permit with Hillside Aviation, Inc. (C-070-100 & A-090-020) It is the recommendation of the Airports Director that Resolution No. 93-19 be adopted, a resolution of the City Council of the City of Redding approving the First Amendment to Lease and First Amendment to Permit for Commercial Activities, extending the terms to January 31, 2005, between the City of Redding and Hillside Aviation, Inc. at Benton Airpark, and authorizing the mayor to sign same. 1993 Street Banner List (U-500-850) It is the recommendation of the Utilities/Customer Service Director that the Economic Development Corporation's request to hang a street banner during the week of March 22, 1993 be approved and staff instructed to prepare a letter to Caltrans. Notice of Completion - Bid Schedule No. 2265, Stillwater Wastewater Treatment Plant (B-050-020 & W-010-560) It is the recommendation of the Public Works Director that Bid Schedule No. 2265 (Job No. 9897), Stillwater Wastewater Treatment Plant, awarded to Humphrey Construction, be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $16,228,405.00. Notice of Completion - Bid Schedule No. 2356, Clover Creek Sewer Trunk Line (B-050-020 & A-170-100-080) It is the recommendation of the Public Works Director that Bid Schedule No. 2356 (Job No. 9899), Clover Creek Sewer Trunk Line, awarded to Kenko, Inc., dba McGrand & Associates, be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $7,778,829.36. Resolution Accepting Streets and Acceptance of Final Map and Improvements - Churn Creek Estates Subdivision (North of Hollow Lane and west of Ridgewood Road) 3 01/19/93 * (S-070-230 & S-100-082) It is the recommendation of the Public Works Director that Resolution No. 93- 20 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation Fox Estates Court in the Churn Creek Estates Subdivision. It is also recommended that the improvements in Churn Creek Estates Subdivision, developed by Hallman Construction, be accepted as satisfactorily completed, and the City Clerk be instructed to file the Map with the Shasta County Recorder. Notice of Completion - Bid Schedule No. 2646, Clover Creek Box Culvert (B-050-020 & S-070-300-090) It is the recommendation of the Public Works Director that Bid Schedule No. 2646 (Job No. 9994), Clover Creek Box Culvert, awarded to Robert J. Frank Construction, Inc., be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $69,113.00. Acceptance of Final Map - Country Heights, Unit 9 (S-41-90) (North side of Canyon Creek Road west of Buena Ventura Boulevard) (S-100-108) It is the recommendation of the Public Works Director that the Final Map for Country Heights Subdivision, Unit 9, be approved, the Mayor be authorized to sign the Subdivision Agreement, and the City Clerk file the Map with the Shasta County Recorder. Resolution Accepting Streets and Acceptance of Improvements - Lancer Hills Estates, Unit 3 (S-20-88) (North of Lancers Lane and west of Browning Street) * (S-070-230 & S-100-433) It is the recommendation of the Public Works Director that Resolution No. 93- 21 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation Burton Drive in Unit 3 of the Lancer Hills Estates Subdivision. It is also recommended that the improvements in Lancer Hills Estates, Unit 3, be accepted as satisfactorily completed, and the City Clerk instructed to return the securities to the developer, Jaxon Enterprises. MOTION: Made by Council Member Anderson, seconded by Council Member Kehoe, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe & Moss Noes: Council Members - None Absent: Council Members - None Resolution Nos. 93-17, 93-18, 93-19, 93-20 and 93-21 are on file in the office of the City Clerk. - - - - - WRITTEN COMMUNICATIONS LETTER - from John Sanderson re High Speed Pursuits by Law Enforcement Agencies (P-150-150) John Sanderson, P.O. Box 494262, appeared before Council regarding law enforcement high speed pursuits. He related that the accident involving a California Highway Patrol (CHP) officer in pursuit of a speeding motorcyclist which resulted in the death of Jane Abbott on October 24, 1992, motivated a petition drive which generated approximately 5,500 signatures against high speed pursuits in congested areas. He stated that he met with Senator Mike Thompson, as well as CHP Commissioner Hannigan to whom he presented the petitions. He explained that the U.S. Department of Justice categorizes pursuits as follows: 1) Discretionary; 2) Restrictive; and 3) Discouraging. It appears the CHP's policy falls within the discretionary category which relies totally on the officer's judgment. He commended the City for its pursuit policy as it represents a responsible approach to this serious issue. Because only approximately one-fifth of the states have a pursuit policy, he requested that Council send a letter of support to state and national legislators regarding high speed pursuit policies. 4 01/19/93 MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, directing Police Chief Blankenship to draft a letter addressed to State and National legislators regarding high speed pursuit policies and bring it back to Council for consideration. The Vote: Unanimous Ayes PUBLIC HEARING - re Rezoning Application RZ-23-92, by Harold Shaw and the City of Redding (South of Hartnell Avenue between Oxford and Bunker Streets) (L-010-230) The hour of 7:00 p.m. having arrived, Mayor Moss opened the public hearing regarding Rezoning Application RZ-23-92. 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 January 12, 1993 City Clerk Strohmayer advised that no protests were received. Planning and Community Development Director Perry related that the Planning Commission, at its meeting of December 22, 1992, recommended to approve the rezoning of the subject property from "U" Unclassified District to "RM-9" Multiple-Family Residential District. It is the recommendation of the Planning Commission and staff that Council approve the rezoning request, ratify the Negative Declaration, and offer the ordinance for first reading. Mayor Moss determined that there was no one present wishing to speak on the matter and closed the public hearing. MOTION: Made by Council Member Anderson, seconded by Council Member Dahl, that Council make the following findings regarding Rezoning Application RZ- 23-92: 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 December 22, 1992. The Vote: Unanimous Ayes Council Member Anderson offered Ordinance No. 2040 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-9" Multiple-Family Residential District (RZ-23-92). PUBLIC HEARING - re Proposed Sale of Benton Ranch, by the Redding Redevelopment Agency (C-070-010-020 & R-030-050-050) The hour of 7:00 p.m. having arrived, Mayor Moss opened the public hearing regarding the proposed sale of Benton Ranch. The following documents are on file in the office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Redevelopment Agency recommendation dated January 12, 1993 City Clerk Strohmayer advised that no protests were received. Planning and Community Development Director Perry explained that the Redding Redevelopment Agency is proposing to sell Benton Ranch to the Redding Elementary School District and to The McConnell Foundation. The intended uses are an elementary school and an arboretum, respectively. Mr. Perry stated that the property was appraised at $1,885,000.00. The school district will finance its purchase over a period of 10 to 14 years from tax increment revenues it receives. The McConnell Foundation would pay for its acquisition upon close of escrow. In the event the school district did not acquire the school site, The McConnell Foundation also has an option to acquire the school site. Mr. Perry related that under State law, land owned by the Redevelopment Agency may be sold without public bidding, but only after the sale is first 5 01/19/93 approved by Council, after a public hearing, after preparation of a statement of costs, and after having the proposed sales agreements available for review two weeks prior to the hearing. Council must approve the sale of the property by adoption of a resolution with a two-thirds vote. Council must also find that the price of the property is not less than fair market value. It is the recommendation of the Redevelopment Agency that Council approve the sale and adopt the necessary resolution. Leonard Bandell clarified that the price being paid by the Redding Elementary School District is $500.00 more than was indicated at the Redding Redevelopment Agency Meeting on January 18, 1992. Mr. Perry indicated that the correct purchase price would be referenced in the agreement to be prepared for signature by the Chair of the Redding Redevelopment Agency. Warren Lytle, 2944 Quartz Hill Road, stated that the arboretum concept has a substantial amount of support, not only from the arboretum committee, but the people who showed their support through the signing of petitions. Lee Salter, Executive Director of The McConnell Foundation, thanked each member of City Council for their perseverance in seeing the sale of Benton Ranch through. Mayor Moss determined that there were no additional individuals wishing to speak on the matter and closed the public hearing. MOTION: Made by Council Member Arness, seconded by Council Member Dahl, that Resolution No. 93-22 be adopted, a resolution of the City Council of the City of Redding approving the sale of a portion of the Benton Ranch by the Redding Redevelopment Agency to the Redding Elementary School District and The McConnell Foundation for a total sales price of $1,885,000.00. Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Resolution No. 93-22 is on file in the office of the City Clerk. ORDINANCE NO. 2038 - re Rezoning Application RZ-24-92, by Azi Barzin (802 through 869 Cally Court) (L-010-230) MOTION: Made by Council Member Arness, seconded by Council Member Dahl, that the full reading of Ordinance No. 2038 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, that Ordinance No. 2038 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 "R3-40-BMF-F" Multiple-Family Residential District, subject to site-plan- review criteria (RZ-24-92). Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Ordinance No. 2038 is on file in the office of the City Clerk. ORDINANCE NO. 2039 - re Rezoning Application RZ-13-92, by the City of Redding (Park Marina Drive - Redding Riverfront Specific Plan) (L-010-230) MOTION: Made by Council Member Arness, seconded by Council Member Dahl, that the full reading of Ordinance No. 2039 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Dahl, seconded by Council Member Kehoe, that Ordinance No. 2039 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 "U" Unclassified District with various Combining Districts (RZ-13-92). 6 01/19/93 Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Ordinance No. 2039 is on file in the office of the City Clerk. RESOLUTION - Commending Marianne Johannessen for Her Service as President of the Greater Redding Chamber of Commerce (A-050-060) City Manager Christofferson related that Marianne Johannessen has made significant contributions to the community as President of the Greater Redding Chamber of Commerce. He indicated that Council may wish to recognize her leadership and contributions through a resolution of commendation, which could be presented by the Mayor at the Annual Chamberee. MOTION: Made by Council Member Arness, seconded by Council Member Kehoe, that Resolution No. 93-23 be adopted, a resolution of the City Council of the City of Redding commending Marianne Johannessen for her service to the community as 1992 President of the Greater Redding Chamber of Commerce. Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Resolution No. 93-23 is on file in the office of the City Clerk. LEGISLATIVE MATTERS - The State Budget "Solution" (L-040-300) City Manager Christofferson reviewed the Report to City Council dated January 11, 1993, incorporated herein by reference, outlining some of the State's proposed budget solutions as follows: 1) Elimination of AB8 funding to cities. Currently, the City of Redding has $1,378,000.00 remaining in property taxes which are subject to AB8 provisions; and 2) Creation of new jobs and new business and industry and proposed tax breaks for business. If the cities do not have at least a vestige of incentive to stimulate new business and industry, it is unlikely that the State's goal of new business development (with the accompanying jobs) will be achieved. The State Chamber of Commerce, the California Taxpayers Association, and the Building Industry Association, among others, have joined the League of California Cities in opposing this ill conceived notion. Mr. Christofferson recommended that Council take a strong position of opposition to the concept of further eroding the property tax revenue of cities by transfer to the State and direct staff to take all reasonable steps to register the City's opposition with the Governor and appropriate legislators. MOTION: Made by Council Member Dahl, seconded by Council Member Anderson, directing staff to take all reasonable steps to register the City's opposition to the concept of further eroding the property tax revenue of cities by transfer to the State with the Governor and appropriate legislators. The Vote: Unanimous Ayes DEMOLITION OF OLD STONE BUILDING AT PARKVIEW AND FREEBRIDGE (C-050) City Manager Christofferson related that an old City-owned stone building at the west end of Parkview Avenue near Freebridge has fallen into disrepair over the years and presently constitutes an unnecessary and inappropriate source of liability exposure to the City. Mr. Christofferson indicated that Museum Director Foster has confirmed that it is "a landmark of early power development in Shasta County," having been built by the Keswick Electric Power Company for use as a substation. The Electric Department was consulted to determine potential interest in the use of the structure, perhaps as an electric museum of some kind. Because of the status of disrepair, the judgment of the Electric Department was that the potential for use and marginal historical significance was not sufficient to justify the substantial cost of reconstructing the building to current building codes. Consultation with other City departments generated responses that essentially were supportive of that conclusion. 7 01/19/93 Mr. Christofferson stated that depending on the alignment selected for the proposed Parkview Bridge, it is possible that the site may be needed for the bridge approach. The General Services Department has determined that it would require $4,680.00 to demolish the building and dispose of the debris. It is the recommendation of staff that Council order the demolition of the old stone building and direct staff to prepare a resolution transferring the necessary funds for consideration at the meeting of February 2, 1993. In response to Council Member Dahl, Mr. Christofferson related that the President of the Historical Society concurs with staff's recommendation. Council Member Dahl requested that Council defer action on this item for 30 days to allow Council Members an opportunity to visit the site. MOTION: Made by Council Member Dahl, seconded by Council Member Kehoe, to defer action regarding the demolition of the old stone building at Parkview and Freebridge for 30 days. The Vote: Unanimous Ayes CITY-WIDE VOLUNTEER PROGRAM RESOLUTION APPROPRIATING FUNDS * (B-130-070 & P-100-060-850) City Manager Christofferson explained that the City of Redding Police Department's volunteer program has flourished in the past few years to the level of over 50 volunteers donating literally thousands of hours of service to the City. In addition, the program represents a most worthwhile outreach to the community, with each volunteer serving as a well-informed ambassador for the City. A further advantage of the volunteer program is the cultivation and encouragement of a public service work ethic. The museums, and several other departments, have also utilized volunteer programs to help supplement available resources for providing service to the public. Mr. Christofferson indicated that over the past several months, staff has been working on about two dozen projects designed to examine current operations and devise ways in which the job can be done more cost effectively, and a city-wide volunteer program is right at the top of the list. Accordingly, staff has developed a plan for extending the program city-wide. It would require the reallocation of some resources, and the optimum solution involves partial reassignment of Karen Calanchini who has done such an excellent job of organizing the volunteer program for the Police Department. Under this plan, Ms. Calanchini would continue to devote about half of her time to the Police Department and the other half to other departments. This would require some redefinition of her present position through reclassification and an appropriation of approximately $7,800.00 to cover the balance of the current fiscal year. Mr. Christofferson stated that had he known Council Member Kehoe had prepared a similar package, he would not have submitted this report for consideration. Discussions with Council Member Kehoe, however, indicate that the two packages complement each other. It is recommended that Council provide its endorsement to the City-wide Volunteer Program concept, authorize staff to proceed, and adopt a resolution appropriating the necessary funds. MOTION: Made by Council Member Dahl, seconded by Council Member Kehoe, to endorse the City-wide Volunteer Program concept, authorize staff to proceed as indicated in the Report to City Council dated January 8, 1993, incorporated herein by reference and adopt Resolution No. 93-24, a resolution of the City Council of the City of Redding approving and adopting the 39th amendment to City Budget Resolution No. 92-306 appropriating $7,800.00 for personnel costs associated with a City-Wide Volunteer Program. Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Resolution No. 93-24 is on file in the office of the City Clerk. RESOLUTION - re Lease of Land Adjacent to the Clear Creek Wastewater Treatment Plant 8 01/19/93 (C-070-100 & W-010-450) Planning and Community Development Director Perry recalled that the City owns approximately 150 acres of land surrounding the Clear Creek Wastewater Treatment Facility on the north, west and south. The Sacramento River runs along the eastern boundary of the facility. Prior to City ownership, most of the property was used to pasture livestock. Since at least 1987, approximately 48 acres of the property north of Metz Road has been leased as pasture for livestock. Mr. Perry explained that the property surrounding the facility serves several purposes: a) It acts as an environmental buffer, protecting the general public from any potentially noxious odors which might emanate from the plant; and b) Creates a safety zone, where most public activities are restricted. Unfortunately, such a large expanse of seemingly unused property also attracts a variety of nuisances including vandals, vagrants, and other types of trespassers. It has been staff's experience that the portion of the property which has had cattle pastured on it is less prone to these activities than that which is unused. Mr. Perry related that a land lease agreement has been reached with Mr. George Osborn for 90.5 acres south of Metz Road. Mr. Osborn desires to use the property for winter pasture of livestock at per head/per month rates. He estimates that he will run approximately 20 head of cattle on the property initially. The agreement carries a five-year term, with an accelerated lease schedule over the five years. The lower lease rate for the first two years of the agreement will allow Mr. Osborn to recover some of his costs associated with the initial perimeter fence repair and berry vine containment tasks. It is the recommendation of staff that Council adopt a resolution authorizing the Mayor to sign the Land Lease Agreement. MOTION: Made by Council Member Dahl, seconded by Council Member Anderson, that Resolution No. 93-25 be adopted, a resolution of the City Council of the City of Redding approving and authorizing the Mayor to execute the Land Lease Agreement, for the period of January 20, 1993 through January 19, 1998, between the City of Redding and George R. Osborn for pasturing of livestock on City-owned property on Eastside Road. Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Resolution No. 93-25 is on file in the office of the City Clerk. SHASTA COUNTY DRAFT TRANSPORTATION CONTROL MEASURE RULE OF AIR QUALITY ATTAINMENT PLAN (E-020-010) Planning and Community Development Director Perry highlighted the Report to City Council dated January 12, 1993, incorporated herein by reference, which outlined Shasta County's Draft Transportation Control Measure Rule of Air Quality Attainment Plan (Rule 3.24). The measure is scheduled for consideration of adoption by the County Air Pollution Control Board on January 26, 1993. Rule 3.24 is intended to improve air quality, minimize traffic congestion, and reduce the number of single-occupancy motor vehicle trips by encouraging ride sharing through public education and requiring annual trip reduction reports from significant trip generators and large employers. It is the recommendation of staff that Council recommend that the County Air Pollution Control Board adopt the draft rule. If the rule is approved, the City would have approximately six months to submit a trip reduction report to the District and begin implementing it. Council Member Arness wanted to ensure that Council recognized the costs associated with the Air Quality Plan, including those costs which would be associated with private land development. MOTION: Made by Council Member Arness, seconded by Council Member Kehoe, recommending that the Shasta County Air Pollution Control Board adopt the 9 01/19/93 Draft Transportation Control Measure Rule of Air Quality Attainment Plan (Rule 3.24). The Vote: Unanimous Ayes RESOLUTION - re Amendment No. 3 to Contract No. DE-MS65-83WP59008 with the Western Area Power Administration (E-120-900) Electric Utility Director Lindley explained that when the City begins to take delivery of power from City-owned and other resources, it will be obligated to account for power generated or purchased and delivered to City customers on a real-time, hour-by-hour basis. Mr. Lindley related that the proposed amendment to the Western Area Power Administration's (WAPA) contract enables the City to utilize its own power generation and other power resources to serve its load, enables staff to optimize the economic use of those power resources in accordance with prudent utility practices, and provides the City with certain required control area services at a lower cost than available alternatives. The amendment also confirms and clarifies the direction for the City's future resource development programs. It is the recommendation of staff that Council adopt a resolution approving Amendment No. 3 to Contract No. DE-MS65-83WP59008 with WAPA which authorizes the Mayor to execute the amendment and authorizes the Director of Electric Utility or his designee to serve as the City of Redding's representative to the Operating Committee established by the amendment. Funding for the services provided by this amendment are included in the Electric Utility's long-term economic projections and will be included in the Electric Utility's fiscal year 1994 and subsequent years' budget requests. Mr. Lindley explained that the agreement has not been approved to final form by WAPA. He noted that any changes would be approved to form by the City Attorney and any substantial changes would be brought back to Council for consideration. MOTION: Made by Council Member Arness, seconded by Council Member Dahl, directing staff that any substantial changes to Amendment No. 3 must be brought back to Council for consideration and adopting Resolution No. 93-26, a resolution of the City Council of the City of Redding approving and authorizing the Mayor to execute Amendment No. 3 to Contract DE-MS65- 83WP59008 dated January 16, 1984, with the Department of Energy, Western Area Power Administration; and appointing the Director of the Electric Utility or his designee to serve as the City's representative to the Operating Committee established by said amendment. Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Resolution No. 93-26 is on file in the office of the City Clerk. REDDING POWER PLANT STAFFING PLAN (E-120-150 & P-100-060) Electric Utility Director Lindley explained that the current Redding Power Plant (RPP) construction time line indicates that training of RPP operating staff would need to begin by the first of October 1993. It would be necessary for operating personnel to be on site for three months in order to be trained, assist in plant start up, and be ready to operate the RPP by January 1994, the anticipated commercial operation date. Mr. Lindley stated that during the interim time period, the City must determine whether the plant will be operated and maintained by City staff, a contractor, or some combination of the two alternatives. The Electric Department has concluded that it would be difficult in the time available to perform the necessary personnel work such as writing job specifications, recruiting, and hiring the approximately 17 people, including clerical help, that will be needed to operate RPP. Additionally, the need to install an inventory control system, work order management program or improve the existing program, and the need to establish an appropriate cost and revenue accounting system, point toward contracting with an experienced operating company which already has these features in place. The size of the City's investment may, however, direct Council to favor using City staff to operate 10 01/19/93 the RPP and IPT projects. RPP will be increasing and decreasing generation output to match the City's load. This mode of operation will require close attention of operating personnel and will result in higher maintenance costs than are typical for base-loaded plants. Therefore, the City's direct control of maintenance is important. Mr. Lindley said that the cost for the City to operate the plant can be, to a large extent, controlled by Council. If Council elects to hire staff to operate the plant, it can initially establish the wage rages independent of the collective bargaining process. In order to assist Council with its decision regarding staffing, Council may want to obtain the services of an independent consultant skilled in the operating and staffing requirements for such plants. The consultant could provide recommendations regarding staffing and perform a comparison of the cost of City operation of the RPP and IPT projects with the cost of contracted operation. It would seem logical to have the same consultant that prepares the estimated cost for the City to operate the plant write the Request for Proposal (RFP) that the City would use to solicit proposals from companies that contract for plant operation. It is the recommendation of the Electric Department that Council authorize staff to retain Henwood Energy Services, Inc., for an amount not-to-exceed $16,372.00, to prepare the cost estimate for the City to staff and operate the RPP and IPT projects and authorize a not-to-exceed cost of $3,760.00 for preparation of the RFP for contract operation by Henwood Energy Services, Inc. Council Member Arness saw advantages to the City staffing the facility. He favored utilizing an independent consultant who has real plant experience and could better determine the number of employees required to staff the facility. He stressed that timing is essential to the project. Council Member Anderson favored initially privatizing the operation of the plant. He expressed concern, however, with spending money to hire a consultant to perform a study which could possibly be completed by staff for less money. He questioned whether staff would be capable of writing an RFP, and if not, would Henwood Energy still write the RFP for the same amount of money if it did not perform the prior study. Electric Utility Operations Manager Ryan responded that Henwood would not prepare the RFP for the same price if the prior study were not completed by its firm. Mr. Lindley related that staff had information available and could prepare the RFP in-house and provide the same quality work. Given the tremendous amount of work which still needs to be completed on the project, however, he recommended hiring a consultant. He noted that any information prepared by staff could be considered suspect. Mr. Lindley explained that if Council elected to contract for the operation and maintenance of the plant, the bond covenants stipulate that the City cannot enter into contracts for more than five years and must be able to terminate the contract upon a three-year notice. Mayor Moss stated that the City has committed approximately $75,000,000.00 to this project. He opined that the potential cost savings of having staff prepare a report is minimal compared to the project's magnitude. He also indicated that he would be more confident with a report prepared by an outside firm. Council Member Kehoe was concerned with non-competitively awarding a consulting contract. He concurred with Council Member Anderson's comments regarding the usage of staff to prepare the necessary information, especially given the fact that the Electric Department has the resources available to perform the necessary work, however, is reluctant to divert present efforts. MOTION: Made by Council Member Dahl, seconded by Council Member Arness, authorizing staff to retain Henwood Energy Services, Inc., for an amount not- to-exceed $16,372.00, to prepare the cost estimate for the City to staff and operate the Redding Power Plant and IPT projects and authorize a not-to- exceed cost of $3,760.00 for the preparation of the Request for Proposal (RFP) for contract operation by Henwood Energy Services, Inc. Voting was as follows: 11 01/19/93 Ayes: Council Members - Arness, Dahl and Moss Noes: Council Members - Anderson and Kehoe Absent: Council Members - None In response to Council Member Anderson, Mr. Lindley replied that Henwood Energy Services, Inc. is not interested in bidding on the operation and maintenance of the plant. RESOLUTION - Authorizing Submission of Grant Preapplication to Federal Aviation Administration for Capital Improvement Projects (G-100-070-095 & A-090-100) Airports Director Ruff explained that on October 15, 1992, Mr. John Pfeifer, Manager of the Federal Aviation Administration (FAA) Airports District Office, requested the City to submit a project program to absorb all of the Entitlement Funds earned by Redding Municipal Airport for federal fiscal year 1992-93. This amounts to $454,402.00, none of which is yet encumbered. Mr. Pfeifer also suggested to identify any significant Discretionary Funding felt would be needed to complete the program. Mr. Ruff stated that staff has worked diligently to prepare a program for Preapplication submittal to FAA. The program developed totals $1,203,000.00; $1,082,700.00 of which would be funded by the FAA. Staff has also discussed the matter with the Caltrans Aeronautics Division management who indicated they would support matching funds, $120,300.00, through the State's Airport Loan Program. The Airports Commission, at its meeting of January 11, 1993, voted unanimously to support the request. It is the recommendation of the Airports Commission and staff that Council adopt a resolution approving the submittal of a Preapplication to the FAA for the project program and file the State Airport Matching Fund Loan Application. MOTION: Made by Council Member Arness, seconded by Council Member Dahl, that Resolution No. 93-27 be adopted, a resolution of the City Council of the City of Redding authorizing the filing of a Federal Grant Preapplication, in the amount of $1,082,700.00, for Entitlement/Discretionary Airport Improvement Program (AIP) Grant monies to accomplish capital projects at Redding Municipal Airport, and authorizing the City Manager to execute the preapplication and all subsequent documentation to obtain Federal Aviation Administration (FAA) grant monies and State loan matching funds. Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Resolution No. 93-27 is on file in the office of the City Clerk. PUBLIC COMMENT (C-070-010-020) Russell Hunt, although not opposed to the sale, expressed concern regarding the long-term effects of the sale of Benton Ranch. Examples provided were: 1) The cost of developing an arboretum of 180 acres given the fact that the Natural Science Museum is currently 60 percent subsidized by the City of Redding's General Fund; and 2) The cost of building a pedestrian bridge. CLOSED SESSION - re Personnel Matters Relating to Compensation Paid in the Form of Salary Schedules and Fringe Benefits (P-100) Mayor Moss announced that pursuant to California Government Code Section 54957.6(a), Council would adjourn to Closed Session to discuss personnel matters relating to compensation paid in the form of salary schedules and fringe benefits. At the hour of 7:52 p.m., Mayor Moss declared the meeting adjourned. At the hour of 9:05 p.m., Mayor Moss reconvened the meeting to regular session. ALCOHOLIC BEVERAGE LICENSE APPLICATIONS (A-110-140) Grand China Restaurant (Cheung, Lai King and Lau, Cho Luen) 12 01/19/93 1398 Pine Street Doc's (Marsh, Clarence M. and Lois D.) 10 Hilltop Drive Country Kitchen (Moss Properties, Inc.) 1099 Hilltop Drive ADJOURNMENT There being no further business, at the hour of 9:05 p.m., Mayor Moss declared the meeting adjourned to 1:00 p.m., January 20, 1993, at the Redding Convention Center, Room 125, Redding, California, for Council's Mid-Year Budget Workshop. APPROVED: ____________________________ Mayor ATTEST: _______________________________ City Clerk