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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1993-03-02 - Special1 03/02/93 City Council, Special Meeting City Council Chambers 1313 California Street Redding, California March 2, 1993 6:45 p.m. 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, Assistant City Attorney Calkins, City Clerk Strohmayer and Secretary to City Council Rudolph. CLOSED SESSION (L-100) Mayor Moss stated that City Council would adjourn to closed session to discuss the following: a) Pursuant to California Government Code Section 54956.9(a) to discuss the status of pending litigation in the case of Stankus v. Stufflebeam, et al., USDC Eastern District of CA Case No. CV-92-79; b) Pursuant to California Government Code Section 54956.9(a) to discuss the status of pending litigation in the case of Cynthia Wright, et al v. City of Redding, et al., USDC Eastern District of CA Case No. CIV-92-1774; and c) Pursuant to California Government Code Section 54956.9(c) to discuss pending litigation. At the hour of 6:45 p.m., Mayor Moss declared the meeting adjourned to closed session. At the hour of 6:59 p.m., Mayor Moss declared the meeting reconvened to regular session. MOTION: Made by Council Member Anderson, seconded by Council Member Dahl, finding that the provisions of Government Code Section 825 are met and authorize the defense for the police officers in the case of Stankus v. Stufflebeam, et al., USDC Eastern District of CA Case No. CV-92-79. The Vote: Unanimous Ayes MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, to agree to a compromise of $7,500.00 in the case of Cynthia Wright, et al v. City of Redding, et al., USDC Eastern District of CA Case No. CIV-92-1774, minus a certain amount due to delinquent utility bills. The Vote: Unanimous Ayes ADJOURNMENT There being no further business, at the hour of 7:01 p.m., Mayor Moss declared the meeting adjourned. APPROVED: _____________________________________ Mayor ATTEST: ___________________________________ City Clerk City Council, Regular Meeting City Council Chambers Redding, California March 2, 1993 7:01 p.m. The Pledge of Allegiance to the Flag was led by Assistant City Attorney Calkins 2 03/02/93 The Invocation was offered by Vicar Gary Brown, Trinity Lutheran 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 Planning and Community Development Perry, Chief of Police Blankenship, Electric Utility Engineering Manager Russell, Fire Chief Bailey, Assistant City Attorney Calkins, Director of Community Services Gorman, Director of Finance Downing, Principal Planner Keaney, Public Works Operations Manager Russell, Director of General Services Masingale, Director of Recreation and Parks Riley, Superintendent-Wastewater Craig, Director of Information Systems Kelley, Senior Planner King, Assistant General Services Director Kohn, Risk Manager Mlinarcik, Budget Services Officer Starman, Public Information Officer Bachman, City Clerk Strohmayer and Secretary to the City Council Rudolph. TOURISM AND CONVENTION COMMISSION - Mid-Year Status Report (B-080-540) Duane Lyon, Vice Chair of the Tourism and Convention Commission, reviewed the Commission's Mid-Year Status Report dated February 17, 1993, incorporated herein by reference, which highlighted the following areas: 1) Visitor Marketing: a) Summer Travel Survey results which will be distributed to the hospitality industry within the next few weeks; b) Festival activity support provided in the community, as a means of bolstering regional destination tourism; c) New convention markets and new activities which were convention-like in nature; d) Assisted with recovery marketing related to the Cantara Loop spill and public misperception of lake levels caused by early announcements by the Bureau of Reclamation; and 2) Tourism Awareness: a) Chamber of Commerce Industrial Barbecue; b) Regional Tourism Conference, in conjunction with the Shasta Cascade Wonderland Association, for visitor industry professionals from throughout the region and the state; c) Various public relations activities throughout the period emphasizing the importance of visitor industry and increasing awareness in the community of the economic impact related to tourism. This was an informational item and no action was required. 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. 16, check numbers 190358 through 190857 inclusive, in the amount of $4,829,833.49, be approved and paid, and Payroll Register No. 17, check numbers 352865 through 353754 inclusive, in the amount of $1,100,349.27, for the period of January 31, 1993 through February 13, 1993, be approved. TOTAL: $5,930,182.76 Monthly Financial Report - January 1993 (B-130-070) It is the recommendation of the Director of Finance that the January 1993 Monthly Financial Report be accepted. Resolution - Appropriating Funds for Full-Time Temporary Fire Fighters and Personnel-Related Costs * (B-130-070 & A-050-140) It is the recommendation of the Director of Finance that Resolution No. 93-63 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 49th amendment to Budget Resolution No. 92-306 establishing three full-time temporary fire engineer positions and appropriating $227,000.00 for personnel-related costs. Resolution - Appropriating Funds for Street Lighting Costs * (B-130-070 & E-090-150) It is the recommendation of the Director of Finance that Resolution No. 93-64 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 50th amendment to City Budget Resolution No. 92-306 appropriating $150,000.00 for street lighting costs. 3 03/02/93 Resolution - re Reimbursement of Capital Expenditures for Municipal Airport T-Hangar Construction (D-050 & A-090-100) It is the recommendation of the Director of Finance that Resolution No. 93-65 be adopted, a declaration of official intent of the City Council of the City of Redding to incur taxable or tax-exempt indebtedness in order to reimburse certain capital expenditures associated with the construction of an T-hangar complex at Redding Municipal Airport. Request to Declare Property Surplus - re Linden Avenue Property (C-070-200 & H-150) It is the recommendation of the Planning and Community Development Director that Council declare the City-owned property located along Linden Avenue surplus, authorize staff to process a General Plan Amendment on the subject property, authorize staff to initiate the street abandonment process for the 1800 block of Linden Avenue, and authorize the Redding Housing Authority to act as the City's Agent in all subsequent matters relating to the disposition of the Linden Avenue property. Tentative Subdivision Map S-1-92 - Sunshine Ridge Estates, by Signature Development (Eastern terminus of Wolverine Drive) (S-100-727) Council accepted the report containing the map and conditions of approval for Tentative Subdivision Map S-1-92, Sunshine Ridge Estates, approved by the Planning Commission granting permission to create 67 single-family lots on 69 acres located at the eastern terminus of Wolverine Drive. Resolution - Rescinding Resolution No. 91-509 and Approving Property Tax Exchange Agreement for Annexation 90-9, Kisling Road Area (T-010-650 & A-150-231) It is the recommendation of the Planning and Community Development Director that Resolution No. 93-66 be adopted, a resolution of the City Council of the City of Redding rescinding City Council Resolution No. 91-509 and approving a resolution involving property tax transfers between the County of Shasta and the City of Redding for the City of Redding Reorganization No. 90-9, Kisling Road Area. Resolution - Appropriating Funds for Arboretum Improvements and Preliminary Pedestrian Bridge Studies and Authorizing Receipt of Related Revenue * (B-130-070 & P-050-460-700) It is the recommendation of the Planning and Community Development Director that Resolution No. 93-67 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 52nd amendment to City Budget Resolution No. 92-306 (1) Appropriating $111,300 for arboretum improvements ($81,300) and preliminary pedestrian bridge studies ($30,000); and (2) Authorizing the receipt of $111,300 in related revenue. Resolution - Rejecting Bids Relative to American Disabilities Construction Project No. 45863 and Authorizing Negotiation on the Open Market (B-050-100) It is the recommendation of the Planning and Community Development Director that Resolution No. 93-68 be adopted, a resolution of the City Council of the City of Redding rejecting all bids relating to American Disabilities Construction Project No. 45863; declaring that the services may be acquired in the open market at a price favorable to the City; and authorizing the negotiation thereof by the City Manager and the execution of the necessary documentation. Resolution Setting Public Hearing - re Abandonment Application A-15-92, by Valley Industrial (Unimproved Road Easement Located between 5040 and 5080 Caterpillar Road) (A-010-100) It is the recommendation of the Planning and Community Development Director that Resolution No. 93-69 be adopted, a resolution of the City Council of the City of Redding declaring its intention to vacate and abandon surplus street right-of-way located between 5040 and 5080 Caterpillar Road and setting a public hearing for 7:00 p.m. April 6, 1993. Award of Bid - Bid Schedule No. 2727, Purchase of Relay and Control Panels for Beltline Substation (B-050-100) 4 03/02/93 It is the recommendation of the Electric Utility Director that Bid Schedule No. 2727, purchase of relay and control panels for Beltline Substation, be awarded to the evaluated low bidder, Harlo Corp., in the amount of $141,675.11. Funds for this purchase are included in the 1989 Electric System Project Financing Program, Job Order No. 9284-22. Agreement - Redding Police Officer Peter Nicolay re K-9 Police Dog (P-150-150) It is the recommendation of the Police Chief that Council approve the written agreement between the City of Redding and Redding Police Officer Peter Timothy Nicolay regarding "Fango" a K-9 Police Dog and authorize the City Manager to sign same. Agreement - Redding Police Officer Allen Long re K-9 Police Dog (P-150-150) It is the recommendation of the Police Chief that Council approve the written agreement between the City of Redding and Redding Police Officer Allen Long regarding "Buster" a K-9 Police Dog and authorize the City Manager to sign same. Resolution - Appropriating Funds and Authorizing Receipt of Related Revenue re Abandoned Vehicle Abatement Program * (B-130-070 & A-010-140) It is the recommendation of the Police Chief that Resolution No. 93-70 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 40th amendment to City Budget Resolution No. 92-306 (1) Appropriating $46,770.00 for costs associated with the Abandoned Vehicle Abatement Program; and (2) Authorizing the receipt of $46,770.00 in related revenue. Purchase of Communications Equipment/Supplies (B-050-100 & C-175-750) It is the recommendation of the General Services Director that staff be authorized to purchase communications testing and monitoring equipment in the amount of $14,954.00. Funds for this purchase are included in Communication Division's 1992-93 budget. Resolution - Authorizing Destruction of Certain Documents (A-050-055-750) It is the recommendation of the City Clerk that Resolution No. 93-71 be adopted, a resolution of the City Council of the City of Redding authorizing the destruction of certain documents. Resolution - Proclaiming Week of March 7-14, 1993 as Tree Planting Day/Arbor Week (A-050-060-600 & A-050-220-075) It is the recommendation of the Recreation and Parks Director that Resolution No. 93-72 be adopted, a resolution of the City Council of the City of Redding declaring March 8, 1993, as Community Tree Planting Day, otherwise known as Arbor Day; and March 7 through 14, 1993, as Arbor Week. Resolution Accepting Streets and Acceptance of Improvements - Almaden Estates, Unit 2 (LS-20-92) (North side of Placer Street west of Buenaventura Boulevard) * (S-070-230 & S-100-023 & L-010-150) It is the recommendation of the Public Works Director that Resolution No. 93- 73 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation Almaden Drive in Unit 2 of the Almaden Subdivision, pursuant to Lot Split No. LS-20-92. It is also recommended that the improvements in Almaden Estates, Unit 2, Lot Split No. LS-20-92, developed by Shield Development Partners, be accepted as satisfactorily completed. Resolution Accepting Streets and Acceptance of Improvements and Final Map - Wheeler Estates, Units 2 and 3 (S-56-90) (North of Howard Drive at the north end of Songbird Way) * (S-070-230 & S-100-793) It is the recommendation of the Public Works Director that Resolution No. 93- 74 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation Songbird Way in Unit 2 and Warbler Court in Unit 3 of the Wheeler Estates Subdivision. 5 03/02/93 It is also recommended that the improvements in Wheeler Estates, Units 2 and 3, developed by David Wheeler, be accepted as satisfactorily completed and the City Clerk be instructed to file the Map with the Shasta County Recorder. Resolution Amending Street Name and Acceptance of Improvements - Mary Lake, Unit 11 (Northeast corner of Placer Street and O'Conner Avenue) * (S-070-230 & S-100-454) It is the recommendation of the Public Works Director that Resolution No. 93- 75 be adopted, a resolution of the City Council of the City of Redding amending Resolution No. 92-319, which accepted streets in Unit 11 of the Mary Lake Subdivision for maintenance and operation, specifically the correct spelling of O'Conner Avenue. It is also recommended that the improvements in Mary Lake, Unit 11, developed by Mary Lake Development, be accepted as satisfactorily completed. MOTION: Made by Council Member Kehoe, seconded by Council Member Dahl, 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. 93-63, 93-64, 93-65, 93-66, 93-67, 93-68, 93-69, 93-70, 93- 71, 93-72, 93-73, 93-74 and 93-75 are on file in the office of the City Clerk. PUBLIC HEARING - re Proposed Water Rate and Connection Fee Increases (W-030-400 & W-030-400-020) The hour of 7:00 p.m. having arrived, Mayor Moss opened the public hearing regarding the proposed water rate and connection fee increases. The following documents are on file in the office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Public Works Department recommendation dated February 25, 1993 City Clerk Strohmayer advised that no protests were received. Public Works Director Galusha summarized the Report to City Council dated February 25, 1993, incorporated herein by reference, which outlined the following reasons for the proposed increases: 1) Rate and revenue model developed in 1990 was based on 1990 dollars and expenditures were not increased for inflation; 2) Water Utility Operating and Maintenance expenses are expected to exceed revenue by approximately $400,000.00 in the 1992-93 fiscal year, reducing utility reserve funds to approximately $200,000.00 or 3.8 percent at the end of the fiscal year; 3) In addition to electric rate increases, the utility has experienced several unanticipated operating and maintenance expenses totaling over $604,000.00 annually; 4) The financial stability of the fund will determine the viability of the issue and interest rate of the Buckeye Water Treatment Plant revenue bonds; and 5) Connection fees need to be increased to reflect increased costs for construction. Mr. Galusha explained that in order to generate sufficient revenues to cover the increased operating and maintenance expenses totaling $604,000.00 annually, a rate increase of $.09/ccf is needed. If that increase was spread over the next three year period, it would represent an increase in water rates of 6.7 percent per year. The average monthly cost increase to a typical residential customer would be approximately $.58 per month under the first increase. At the end of the third year and final rate adjustment, the typical residential customer's water bill would see an accumulative increase of $1.75 per month. If the rate were increased in three equal steps from $.44/ccf to $.47/ccf beginning October, 1993, to $.50/ccf beginning October 1, 1994, to $.53/ccf beginning October 1, 1995, the utility's operating and maintenance budget would be balanced by fiscal year 1994-95. Mr. Galusha pointed out that based on December 1992 water rates, the City's current water rates are the fourth lowest of 36 water providers surveyed. With the first two steps of the proposed increases, Redding's position on the survey would remain the same. The third step makes the City the fifth lowest out of the 36 agencies surveyed. 6 03/02/93 Mr. Galusha stated that the connection fees need to be increased in order to cover the increased construction costs. Since October 1991, the Engineering News Record Construction Cost Index has increased by 3.6 percent. Based on this information, the connection fee should be increased from the current $1,700.00 to $1,760.00 per household equivalent. It is the recommendation of staff that Council adopt a water rate increase of $.09/ccf to be spread out over three equal steps. In addition, staff is requesting that the connection fee be increased to $1,760.00 per household equivalent to keep up with construction costs. Council Member Anderson questioned whether the water model had a target reserve similar to that utilized by the Electric Department. He also asked whether the rates would be reduced if the reserve builds above the targeted amount. Mr. Galusha responded that it is staff's intent to accumulate at least $250,000.00 in reserves and maintain a positive balance in the account. Staff tried to factor in all items, however, new issues are constantly arising. An example of this is the State Department of Health Services will soon be charging the City for services which it has normally provided free of charge. He also related that the water model did not provide for a target reserve. In response to Council Member Kehoe, Mr. Galusha indicated that if the legal matter regarding polybutylene pipe breakage is successful, any recovery would be placed back in the utility's operating and maintenance revenue for that year. This recovery would either setup a rate stabilization fund, postpone future rate increases, or allow Council to consider a rate reduction if deemed appropriate. Albert McGuire, 3511 Alta Mesa Drive, stated that he has been a resident of the City of Redding for 21 years. He lives on a fixed income and related that something needs to be done to slow down the rising cost-of-living in the Redding area. Council Member Arness explained that Proposition 4 would not allow the utility reserve fund balance to become immorally high. If the polybutylene pipe litigation is successful, it will either trigger a rate adjustment or flatten the rate curve. Council Member Kehoe asked whether the Water Department has an assistance program similar to that of the Electric Department. If not, he questioned if it would be possible to apply for a grant through the Community Development Block Grant (CDBG) Program. Mr. Galusha replied that the Water Department does not have an assistance program. He did, however, note that the City's flat charge rate is only $3.75 per month, plus a commodity charge, compared to other local agencies of $12.00 or more. With regard to obtaining a grant, he replied that he would have to research the matter further. Mayor Moss determined there were no additional individuals wishing to speak on the matter and closed the public hearing. In response to Council Member Arness, Mr. Galusha related that notification of the public hearing was accomplished by newspaper advertising. Because the rate increase applied equally to all users, 6.7 percent, staff did not believe the additional expenditure of funds to send out letters to various users was justified. Mayor Moss stated that the City has done an excellent job of maintaining low utility rates. Because of the huge growth factor facing the City, there is no choice but to prepare for it, such as the construction of the Buckeye Water Treatment Plant. He found it disturbing that the residents of the City do not acknowledge the excellent job the City has done with providing utility services at some of the lowest rates in the State. Council Members Arness and Dahl did not favor the utilization of CDBG funds for the development of an utility bill assistance program. 7 03/02/93 Mayor Moss preferred to utilize CDBG funds for other purposes and noted that a number of worthwhile organizations and causes did not receive CDBG funding this past year. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, that Resolution No. 93-76 be adopted, a resolution of the City Council of the City of Redding adopting new water utility rates for service to customers within the corporate limits of the City of Redding and the Buckeye service area, effective as follows: October 1, 1993 - $.047/ccf; October 1, 1994 - $.50/ccf; and October 1, 1995 - $.53/ccf. Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Resolution No. 93-76 is on file in the office of the City Clerk. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, that Resolution No. 93-77 be adopted, a resolution of the City Council of the City of Redding adopting a new fee schedule, effective April 1, 1993, increasing the water connection charge from $1,700.00 to $1,760.00 per household equivalent. Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Resolution No. 93-77 is on file in the office of the City Clerk. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, to consider the downward adjustment of water rates if the Water Utility's reserve becomes inordinately large or the City's legal recovery efforts are successful with regard to the polybutylene pipe breaks and direct staff to investigate the development of a customer assistance program, possibly through the Community Development Block Grant Program, tantamount to the existing electrical programs. Voting was as follows: Ayes: Council Members - Anderson and Kehoe Noes: Council Members - Arness, Dahl and Moss Absent: Council Members - None Motion failed due to lack of a majority vote. Council Member Anderson asked that the establishment of target reserves for accounts which are model driven be placed on the next Council workshop agenda. ORDINANCE NO. 2042 - re Rezoning Application RZ-25-92, by Ron Mygrant (Stillwater Heights Subdivision) (L-010-230) MOTION: Made by Council Member Arness, seconded by Council Member Anderson, that the full reading of Ordinance No. 2042 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 Anderson, that Ordinance No. 2042 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-2" Duplex Residential District and "R3-30" Multiple-Family Residential District (RZ-25-92). Voting was as follows: Ayes: Council Members - Anderson, Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Ordinance No. 2042 is on file in the office of the City Clerk. DATE FOR NEXT COUNCIL WORKSHOP (A-050-060) City Manager Christofferson explained that normally, the next Council workshop would be early- to mid-April, which is timely both as a follow-up to the mid-year budget analysis and as a pre-budget refinement of some of the 8 03/02/93 issues discussed in January. He stated that the best dates for such a workshop appear to be April 7, 14, and 21 in that order of preference. He asked Council for guidance as to a preferred date for the next workshop. It was the consensus of Council to set the date for the next Council workshop for April 7, 1993. Council Member Anderson asked that the matter of the Mello-Roos Districts be placed on the Workshop Agenda. He has concerns that the voters might be able to opt out of the Mello-Roos District with a majority vote. Assistant City Manager McMurry replied that staff has completed a report regarding Mello-Roos Districts which might answer some of Council's questions and will be forwarded to Council prior to the Workshop. MEETING WITH SENATOR THOMPSON AND ASSEMBLYMAN STATHAM - re State Budget (L-040-300) City Manager Christofferson explained that the League of California Cities is encouraging cities to hold meetings with their legislators to discuss the state budget from the viewpoint of the cities. The prototype for such meetings was one that was held by the City of San Jose in which Senator Alquist and Assemblyman Vasconcellos visited City Hall and secured new insights relative to city budgetary issues in the context of the state budget crisis. The League believes such meetings will have an extremely salutary effect if they are duplicated all over the state. It is the recommendation of staff that Council direct staff to extend an invitation to both Senator Thompson and Assemblyman Statham for a meeting of the type contemplated by the League in City Hall for the purpose of a mutual discussion of state and local budgetary issues, at the earliest feasible time. MOTION: Made by Council Member Arness, seconded by Council Member Kehoe, directing staff to extend an invitation to both Senator Thompson and Assemblyman Statham for a meeting for the purpose of a mutual discussion of state and local budgetary issues, at the earliest feasible time. The Vote: Unanimous Ayes LABOR RELATIONS MANAGER (P-100-050) City Manager Christofferson reviewed the Report to City Council dated February 17, 1993, incorporated herein by reference, outlining the different options before Council for consideration with regard to meeting the substantial collective bargaining responsibilities that are presently underway and lie ahead in the coming months and years. Mr. Christofferson stated that the concept of reconfiguring the work force with the objective of assigning someone to this responsibility would be workable if, in the course of the budgetary analysis, there was a decision to delete some major services, as the City employees who might be candidates for such reassignment are all in key management positions. In addition, the pay rate for these individuals is in most cases higher than that contemplated for the labor negotiator. Mr. Christofferson explained that staff is not aware of any agency in this area that has a negotiator that has both the requisite experience and background and extra time for which the City could contract. Several agencies in the area, such as the County of Shasta, have "downsized" recently, making serious inroads on their own negotiating capacity. After examining the available options, staff is of the opinion that the staff position is the most cost effective and the most efficient in terms of arriving at the desired objective. With respect to the question of total cost comparisons, staff has determined that management personnel spends approximately 4700 hours on negotiating, or slightly over two-person years in full-time equivalence. Staff is making the assumption that the needs of the City will be about the same over the next several years. It is estimated that the cost of continuing to draw on management personnel from operating departments would cost about $188,000.00, buried in operating department budgets, if an average compensation approximating $40.00 per hour is utilized, including the work of the City's contract negotiator. Exclusive use of non-attorney contract negotiators 9 03/02/93 would represent a cost in excess of $300,000.00 per year unless some kind of flat-rate arrangement were to be negotiated. Utilizing contract attorneys would be roughly double that figure, and use of the California Association of Employers would total about the same as non-attorney contractors assuming the same number of hours. The option of the staff negotiator would cost about $64,000.00 per year, including benefits, with the assumption that existing personnel would absorb clerical requirements. All of the estimates necessarily assume the exclusivity of one method over all the others whereas staff believes that the reality of the matter would result in a blend of at least two methods, thereby blending the cost as well. Mr. Christofferson explained, that based on past experience, approximately 54.5 percent of the cost would be apportioned to the General Fund, 26 percent to the Electric Utility, 9 percent to Solid Waste, 1.5 percent to Waste Water Treatment, 6 percent to the Water Fund, and 3 percent to Airports. It is the recommendation of staff that Council establish the staff position of Labor Relations Manager, including the adoption of the job specification, salary plan amendment, and the budget transfer resolution. Council Member Anderson questioned how much of the current staff cost of $188,000.00 would still be required if a Labor Relations Manager were hired. Mr. Christofferson related that instead of the current two to three staff persons involved with the negotiation process, it would probably only require one staff person to sit with the Chief Negotiator. Council Member Arness opined that the expenditures relating to staff would be common to all alternatives. He added that corporate memory is valuable, however, he does not know how to put a value on it. In response to Council Member Arness, Mr. Christofferson explained that the cost apportionment is based on the amount of time required. He further stated that a staff member is more likely to be career oriented. Mayor Moss questioned utilizing the cost of staff time in the cost analysis. He stated that the costs would be realized regardless if the City had been in negotiations this year. He noted that the City is currently in negotiations with nine out of the ten bargaining units and asked what the Labor Relations Manager would do in the coming year if two- or three-year contracts were in place. Even if a Labor Relations Manager is hired at $65,000.00, the City would still need to utilize outside consultants, as well as staff, to a certain extent. Mr. Christofferson explained that he did not want to mislead Council by indicating there was no cost associated with utilizing staff in the negotiation process. Council needs to decide whether it wants to utilize management personnel in negotiations, and if so, realize that those individuals will not be doing their primary duties. An example of this is when staff was completing the audit, there was concern that it was not being completed in a timely manner. Part of the reason for this was that a couple of the individuals which would have been involved in the audit process were on negotiation teams. He related that there is a constant flow of personnel activity, such as grievances and arbitrations, and there should be no problem in utilizing the Labor Relations Manager to full capacity. He noted that staff is only trying to give a clear picture of negotiation costs. Until the staff is built to two plus people, the City will still need to draw upon outside assistance, such as Ron Reynolds to whom the City will probably pay close to $85,000.00 this year. In response to Council Member Anderson, Mr. Christofferson stated that if a Labor Relations Manager were hired, the cost of outside consultants would vary. There is no way of knowing how much the Labor Relations Manager can handle, as it varies from person to person. It is likely that negotiations will, however, require an equivalent of two plus individuals. Assistant City Manager McMurry clarified that staff tries to stagger contract expirations to avoid doing all the negotiating in one year. In response to Mayor Moss, Mr. Christofferson indicated that the City Manager's Office would provide sufficient guidance for the Labor Relations Manager to handle negotiations. He provided the example of the City of 10 03/02/93 Fresno where an individual, with little prior negotiation experience, was put into the position of Labor Relations Manager at a similar pay range and with some guidance performed very well in this capacity. Mayor Moss posed the question of placing a two-year sunset on the position and allow staff an opportunity to review the true costs of negotiations. Mr. Christofferson related that with the salary at the proposed level, which is below that of any department head and a two-year sunset on the position, the City would probably not be able to recruit a career-oriented individual. Council Member Anderson opined that it is crucial to have an individual with experience, as there are too many dollars currently on the bargaining table. Mayor Moss concurred with Council Member Anderson. Given his respect for Mr. Christofferson's opinion, he indicated a willingness to hire a Labor Relations Manager at the $64,000.00 salary level. He did not, however, want to create a position and find it impossible to eliminate it in the future. Mr. Christofferson assured Council that if staff were unable to recruit a person of the caliber necessary, it would not make an appointment. Council Member Kehoe indicated that a consultant had proposed to perform the City's negotiations at a fee of $120,000.00 and not involve the utilization of City staff. In reality, he noted that it would probably require a combination of both an outside consultant and staff. Given the estimated 4,700 hours of staff time at $40.00 per hour or $188,000.00 annually, if an outside consultant were utilized at the cost of $120,000.00, there would be approximately $68,000.00 for additional charges. He opined that on the surface there appears to be a cost savings which could be realized by contracting out the services. Lance Frederickson, Executive Director of the Shasta Business Council (SBC), explained that SBC is an association of business interests which is reviewing broad and difficult long-term issues in Shasta County. He stated that occasionally a specific issue such as this one interests the Board of Directors. He explained SBC is comprised of a 14 member board with representation from the Chamber of Commerce, the Shasta County Board of Realtors, Shasta Builders Exchange, lumber industry, retailers, wholesale distributors, etc. He stated that the Board of Directors met on this issue and raised a number of questions. The biggest issue raised by the Board was the simple philosophical question of adding additional staffing at this time. He noted that the questions are extremely complex and the answers take time to study. He stated that the issue is well worth some extra study and offered the expertise of the SBC's Board of Directors in providing a recommendation to Council regarding this matter. Robert Anderson, Regional Manager of the California Association of Employers (Association), stated that the Association is a non-profit organization which charges $75.00 per hour for hands-on service, however, there is no charge for telephone consultations. In addition, the Association has two large law firms on retainer which deal in both the private and public sectors and can provide up-to-date information and assistance. In response to Council Member Anderson, Mr. Christofferson explained that staff is currently in negotiations, however, the big thrust will be in May, June and July, as well as some major negotiating after that timeframe. He stated that if an individual is hired, the earliest that person would be available would probably be late May. He stated that it is important to meet the negotiation process in the most economical means and would prefer to hire someone for $30.00 an hour. Council Member Dahl asked if it would be possible to defer action on this matter and make it part of the budgetary process. Mr. Christofferson did not have a problem reviewing this issue during the budgetary process. He stated, however, that the City must be at the bargaining table and explained that the cost of the contract negotiator would increase if the matter is deferred. Council Member Dahl asked if the matter could be deferred for two weeks, thereby providing Council time to analyze the figures. He acknowledged that 11 03/02/93 there are going to be additional costs associated with negotiations and that an additional staff member is probably the most economical. He stated that additional personnel, however, would impact the General Fund reserve and provide a bad perception within the community. Council Member Anderson concurred with deferring action for two weeks. He also requested that staff provide an annual cost estimate blending the alternatives while recognizing that it would be a best guess attempt. MOTION: Made by Council Member Kehoe, seconded by Council Member Dahl, deferring action on the issue of a Labor Relations Manager for two weeks. The Vote: Unanimous Ayes Council welcomed input from the Shasta Business Council and requested that its recommendation be made available within the next two weeks. LEGISLATIVE MATTERS (L-040-300) In a Report to City Council dated February 24, 1993, incorporated herein by reference, Public Information Officer Bachman recommended that Council support SB191 which requires counties to itemize the one percent property tax to clearly show each taxpayer the amount that each local agency receives from that property tax bill and oppose AB267 which deals with the state-wide allocation of vehicle licensing fees. In addition, he reviewed the League of California Cities' seven strategies which it is using to deal with the state budget situation. MOTION: Made by Council Member Arness, seconded by Council Member Dahl, directing staff to take the necessary steps to make the City's support of SB191 and opposition to AB267 known to the appropriate state officials. The Vote: Unanimous Ayes Council Member Kehoe complimented Mr. Bachman on his presentation. He recommended that Legislative Matters be moved to the Consent Calendar portion of the agenda since they so closely follow the bulletins received from the League of California Cities. Mr. Bachman stated that one of the reasons for orally reviewing the various legislative matters is to inform the public of the different matters potentially affecting city government. Council Member Anderson requested that Mr. Bachman review AB3410 which proposes to ban smoking in public places throught the State. It was the consensus of Council to move Legislative Matters to the Consent Calendar portion of the agenda at future meetings. SETTLEMENT OF AMBULANCE DISPATCH FEE (C-175-825-100) Council Member Anderson abstained from discussion and voting on this matter. City Manager Christofferson recalled that Council previously authorized and directed staff to file suit to collect the debt owed by the three ambulance companies, with the provision that staff hold final discussions with the ambulance companies before filing suit, and authorized staff to modify the service policy based on "drop line" service as permitted by law as a way of cutting the City's losses in the future. Mr. Christofferson stated that throughout the discussions with the ambulance companies, the City's has stressed the City's high regard for the three ambulance companies as public-service agencies and emphasized that the entire position of the City is simply a matter of business. It has also been emphasized repeatedly that whatever the outcome, there must be no dilution of service to the public. Mr. Christofferson related that on February 17, 1993, a meeting was held with representatives of all three ambulance companies and reached what appeared to be a reasonable settlement of the matter, as reflected in the letter dated February 19, 1993, incorporated herein by reference, and signed by representatives of all three ambulance companies. The thrust of the settlement is for each of the ambulance companies to pay $10,000.00 to the City, for a total of $30,000.00, in settlement of the debt. The settlement is also predicated on extending the date for transition to drop line service 12 03/02/93 from the originally announced date of March 1, 1993, to April 1, 1993, in order to afford the three companies time to make the necessary arrangements, including training of personnel. While the settlement reflects only about fifty cents on the dollar with respect to the debt, staff believes it is an equitable one for all parties, getting an unpleasant situation behind us without resorting to judicial action and clears up a fiscal problem that has existed for many years. Transition to the drop line service also essentially eliminates the City's subsidy after April 1, 1993. Mr. Christofferson explained that in accordance with the February 26, 1993 deadline suggested by the ambulance companies, he signed the settlement agreement on behalf of the City, subject to Council's ratification, as he believed the agreement to be consistent with Council's general objectives. He recommended that Council ratify the settlement agreement dated February 19, 1993. MOTION: Made by Council Member Dahl, seconded by Council Member Arness, ratifying the Settlement Agreement, dated February 19, 1993, between the City of Redding and Mercy Medical Center, Redding Medical Center, and North Valley Ambulance. Voting was as follows: Ayes: Council Members - Arness, Dahl, Kehoe and Moss Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Anderson LEVEL OF SERVICE REGARDING ANIMAL REGULATION CONTRACT WITH HAVEN HUMANE SOCIETY (A-130) Director of Finance Downing reviewed the Report to City Council dated February 24, 1993, incorporated herein by reference, which provided additional information concerning the number of animal control calls received during regular and after hours, employee work schedules, and service level expenditure analysis. Ms. Downing again provided the following alternatives for Council's consideration: 1) Maintain current level of service, total cost $337,700.000 annually; 2) Reduce current service level based on elimination of after-hours service response, total cost $319,300.00 annually; and 3) Reduce current service level based on the elimination of after-hours service response and one animal control officer, total cost $289,600.00 annually. Ms. Downing stated that staff is requesting direction from Council as to the recommended level of service desired for the community thereby providing guidance during contract negotiations with Haven Humane Society. Council Member Arness was of the opinion that as the City's animal control officers retired or changed jobs, those individuals would ultimately be replaced with Haven Humane employees. He questioned the effectiveness of having individuals start work at 6:30 a.m. from October through March and suggested that the shift schedules be changed to provide more coverage during the peak times. Ms. Downing commented that one of the City's animal control officers retired and was replaced with a Haven Humane employee. The other two City employees, however, are not scheduled to retire for at least another five years. In response to Council Member Kehoe, Ms. Downing explained that both the City's employees and Haven Humane employees receive a $40.00 per diem for being on call in the evening. She stated that most of the City's expenses are personnel related. Most cost savings would be realized by Haven Humane Society as the City's only real variable is fuel costs. The City's animal control officers earn almost twice that of Haven Humane animal control officers. Staff has explored the possibility of reassigning the City's two current animal control officers, however, another suitable position has not been found. Council Member Kehoe asked whether it is possible to reconfigure the work schedules of the officers to enable them to respond to the 3.5 after-hour service calls received daily. 13 03/02/93 Ms. Downing stated that by shifting work schedule hours it would be possible to provide 24-hour service. She commented that some after-hours calls are handled with a phone call or responded to the following morning. The City's overtime expense amounts to less than $1,000.00 annually. MOTION: Made by Council Member Arness, seconded by Council Member Kehoe, directing staff, during negotiations with Haven Humane Society, to work toward reducing the current level of service based on the elimination of after-hours service response for a six-month demonstration period and work toward coordinating hours of operation to absorb some of the after-hours service calls during the demonstration period with emphasis on reducing the City's cost. The Vote: Unanimous Ayes FISH AND GAME FEES (S-050-230) Planning and Community Development Director Perry stated that AB3158, effective January 1, 1991, requires project proponents to pay a fee when a Notice of Determination (NOD) is filed for a project. The only exception is when the lead agency (City) determines that the project will not have an adverse effect on wildlife resources (De Minimis finding). The legislation includes a presumption of adverse impacts. The fee is $1,250.00 for projects for which a negative declaration has been prepared and $850.00 for projects for which an Environmental Impact Report (EIR) has been prepared. The County Clerk adds on an additional $25.00 processing fee, as allowed by the legislation for all NOD's. Mr. Perry explained that the City has received notices from the Department of Fish and Game and Shasta County reflecting a directive by the State that the County not accept NODs from the City unless DFG fees have been paid. In order to comply with State administrative regulations, the City must modify its permit processing procedure in some manner. The Report to City Council dated February 24, 1993, incorporated herein by reference, addresses various options available to meet the requirements. Mr. Perry related that both the City and Shasta County have put the responsibility for fee payment solely on applicants; that is, conditions of project approval note the need to pay the fee, but the NODs are forwarded to the Clerk of the Board of Supervisors regardless of whether the fee has been paid. To date, at least 150 projects approved by the City and the County are outstanding with DFG because either the DFG fees or the County's administrative fees have not been paid. It is the recommendation of staff that Council direct staff to continue to send the NODs to the County whether or not the fees have been paid, thereby satisfying the City's responsibility. Since the posting of the NOD merely establishes a time frame for legal challenges under the California Environmental Quality Act (CEQA), it is the project applicant who should be concerned whether posting indeed occurs. MOTION: Made by Council Member Arness, seconded by Council Member Anderson, directing staff to continue to send all Notices of Determination to the Clerk of the Board of Supervisors whether or not the fees have been paid. The Vote: Unanimous Ayes STATUS CHANGE OF PART-TIME CLERK IN RISK MANAGEMENT (A-050-400 & P-100-320) Risk Manager Mlinarcik related that the Risk Management Department is comprised of two full-time employees and a part-time temporary clerk. When the part-time Intermediate Clerk position was filled approximately two years ago, staff had difficulty finding someone with the necessary experience and training. Mr. Mlinarcik explained that after two years of on-the-job Risk Management training and a class in workers' compensation procedures, Michelle Reynolds now has the experience found only in one or two other City employees. She has the expertise to assist the Senior Clerk in most of the essential office duties. Her primary responsibilities relate to the review of insurance certificates which the City requires of all contractors. In one claim alone, the City saved over $10,000.00 in legal fees, and potentially thousands in indemnity costs, by virtue of its insurance requirements. The number of certificates received by Risk Management continues to increase, from approximately 1,550 in 1991 to 1,800 in 1992, as has the complexity of the 14 03/02/93 review process. Additional workload increases have also resulted from CAL- OSHA mandates, such as hepatitis B immunizations. Mr. Mlinarcik stated that Ms. Reynolds is seeking permanent, full-time employment and her loss would seriously reduce the effectiveness of the office for six months to a year and create an even greater backlog of work than currently exists. It is the opinion of staff that it is in the City's best interest to convert the part-time position to a full-time position. No additional budget appropriation is necessary due to the savings produced by not reclassifying the budgeted position to a Status 8 earlier in the fiscal year and savings produced by the freeze of the Safety Specialist position. The 1993-94 budget would need to include $25,830.00 to fund the full-time position. Council Member Anderson opined that deviations to the hiring freeze should be exceptions. He stated that if Council continues to approve all personnel requests presented, it will not gain any ground through attrition. He noted that a lot of departments have needs, however, at some point in time Council is going to have to adhere to its hiring freeze policy and make a decision as to which positions to approve. Mr. Mlinarcik related that for some time he has been of the opinion that the Risk Management Department needed a full-time employee, but did not make such a request because of the hiring freeze. His main concern is the functioning of the Risk Management Department and the time it will take to retain someone to the point they can perform without supervision. Mayor Moss stated that it is important to analyze each division and office. The Risk Management Department is currently authorized for three and one-half employees, however, due to the hiring freeze, the Safety Specialist position was not filled. The department is working with two and one-half employees which is substantially more than a 25 percent reduction in staff, a loss not suffered by any other division within the City. Council Member Kehoe stated that there has to be continuity to these types of requests and Council needs to understand the costs in relationship to the overall budget. He preferred to consider such requests on an integrated basis, rather than individually. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, to approve an immediate upgrade of the Intermediate Clerk position from the current Status 9 (1,000 hours) to a Status 8 (1,560 hours) until budget deliberations, at which time the entire structure of the department will be reviewed. The Vote: Unanimous Ayes SEASONAL EMPLOYMENT - re Recreation and Parks Department Programs and Facilities (A-050-220) Recreation and Parks Director Riley related that the Recreation and Parks Department is in the process of planning recreation programs and park maintenance schedules for the 1993 spring/summer programs and facilities. The Recreation Division normally schedules interviews during the Easter Week school break, in an effort to hire the best qualified high school and college students for its summer recreation programs. Normally a personnel requisition is submitted for 114 temporary and part-time employees who would be recruited, screened, and interviewed, prior to being officially employed by the City. Mr. Riley explained that the Parks Division is also in the process of planning spring/summer work schedules in order to maintain the existing community parks, baseball/softball facilities, neighborhood parks, and the five new neighborhood parks that will be completed in the near future. Because the Parks Division has not increased the size of its full-time maintenance staff during the past ten years, temporary full-time public works maintenance men have been employed to supplement the work force. In order to operate most efficiently, employees are normally hired in time increments, three beginning March 8; two beginning March 22; two beginning April 5; and two beginning June 1. The Parks Division normally employs 12 temporary full- time employees during the fiscal year in order to supplement the permanent workforce; however, because of limited funds, only nine are being requested this calendar year. 15 03/02/93 It is the recommendation of staff that Council find that the hiring freeze does not apply to the Recreation and Park Department's supplemental workforce, and thereby provide the traditional summer recreation programs and park maintenance. Funds for these services are budgeted until June 30, 1993. Council Member Anderson expressed concern with committing funds for the 1993- 94 fiscal year. Council Member Arness opined that budget deliberations should be the time to reflect on where the City should be in the subsequent year, which in the case of the Recreation and Parks program would be in 1994. He viewed the City's recreation program as one of the City's best prevention programs. He noted that the programs are well coordinated and involve a substantial amount of private sector participation. Council Member Kehoe also expressed concern with committing funding into the next fiscal year, as there may be other programs which have a higher priority, such as police or fire service. Mayor Moss noted that a portion of the revenue reflected in the budget is a product of these programs. If the activities do not occur, the revenue portion of the budget will also decrease. Mr. Riley related that during the budgetary process he will provide Council with figures depicting the reduction of revenue with the elimination of certain programs. In response to Council Member Dahl, Mr. Riley explained that given the current hiring freeze, staff is seeking clarification as to the utilization of full-time temporary employees for the Recreation and Parks Departments seasonal employment. He stated that recruitment of the best candidates would be difficult if the City cannot provide assurance that employment would continue beyond July 1, 1993. He commented that members of the community also contribute to these programs, as evidenced by approximately 3,000 volunteers annually participating in City programs. Robert DiGiulio, 3294 Lake Redding Drive, expounded on the concept of the City's volunteer program. He suggested that the City's skilled employees be retained and moved accordingly and volunteers utilized in the less skilled positions as vacancies occur. Like the anti-smoking movement, he envisions the volunteer movement taking on a life of its own. MOTION: Made by Council Member Arness, seconded by Council Member Moss, finding that the City's hiring freeze does not apply to the Recreation and Parks Department's supplemental workforce, and thereby provide for the traditional summer recreation programs and park maintenance. The Vote: Unanimous Ayes VACANT POSITION IN INFORMATION SYSTEMS AND AUTHORIZATION TO PURCHASE SOFTWARE (A-050-120 & P-100-320 & A-070-400) Information Systems Director Kelley reviewed the Report to City Council dated February 23, 1993, incorporated herein by reference, which outlined the need to replace a System Analyst/Programmer and requested approval to purchase a Computer Assisted Software Engineering (CASE) program. He noted that in the past 18 months, the Information Systems Department has lost one part-time AS/400 night operator and two full-time System Analyst/Programmers. Mr. Kelley stated that the resignation of the recent System Analyst/Programmer affects the Electric Utility/Customer Service System which is an integral piece of the City's funds-generating pie. Maintenance of this system must be maintained, and to shift this task to other personnel would create a suspension of needed automation in other areas. Additionally, to guard against future problems that are encountered when one System Analyst/Programmer must take over another's workload, staff is requesting approval of the purchase of a Computer Assisted Software Engineering (CASE) program. The cost of this software is $3,660.00 per month, to be financed and paid over forty-eight (48) installments. It is the recommendation of staff that Council approve the filling of one System Analyst/Programmer position and authorize the purchase of the CASE 16 03/02/93 software required to increase support and development without increasing staff. In response to Council Member Arness, Mr. Kelley indicated that he is losing programmers to the private sector and the City could become a training center for the private sector. He noted that such business as Citizens Utilities, Sierra Pacific and Mercy Hospital all have similar computer systems and are growing very rapidly. He explained that both programmers he has lost are making better wages in the private sector, with one programmer receiving comparable if not better benefits. In response to Council Member Kehoe, Mr. Kelley proposed to finance the purchase of the CASE equipment over a four-year period commencing on July 1, 1993. He stated that the $44,000.00 annual cost of the software equates to approximately the same amount as the salary of the one programmer which was lost and should eliminate the need to hire additional personnel while still meeting the City's programming needs. In response to Council Member Kehoe, Mr. Kelley related that the Information Systems Department is approximately 50 percent funded by the General Fund and 50 percent funded by the Enterprise funds. Council Member Kehoe noted that in the past, the City has dedicated Community Development Block Grant monies for the GIS system and questioned whether the application might be valid with regard to the purchase of the CASE program. Mr. Kelley replied that only a small amount of the CASE program would be geared toward the GIS system. Planning and Community Development Director Perry clarified that the Housing Authority and other federally funded programs would also be contributing toward the purchase of the CASE program. He stated that some of the CDBG funds which had been allocated for the GIS system had been refunded because the material equipment needs could not be put together at that point in time. Council Member Dahl questioned the impact of postponing a decision with regard to the purchase of the CASE program until budget deliberations. Mr. Kelley indicated that there would not be a problem if Council deferred action; however, he was hoping to do the necessary ground work in the next two or three months to ensure the program would meet the City's needs. He has no intention of making any expenditures until after July 1, 1993, when the 1993-94 budget has been approved. Council Members Dahl and Anderson preferred to consider the purchase of the CASE program during budget deliberations. Council Member Arness opined that the purchase of the CASE program was dollar neutral with the loss of the other System Analyst/Programmer. Council Member Kehoe favored filling the position of one System Analyst/Programmer but was hesitant to commit funds for the 1993-94 fiscal year. MOTION: Made by Council Member Arness, seconded by Council Member Moss, authorizing staff to fill the one System Analyst/Programmer position and authorizing the purchase of the Computer Assisted Software Engineering (CASE) program. Voting was as follows: Ayes: Council Members - Arness and Moss Noes: Council Members - Anderson, Dahl and Kehoe Absent: Council Members - None Motion failed due to lack of a majority vote. MOTION: Made by Council Member Dahl, seconded by Council Member Anderson, authorizing staff to fill the one System Analyst/Programmer position. The Vote: Unanimous Ayes ROUTINE REPORTS AND COMMUNICATIONS Exhibit List of the Northern California Power Agency to FERC re PG&E - Docket Nos. ER92-595 and EL92-596 and Southern California Edison Company, PG&E, San Diego Gas & Electric 17 03/02/93 Company - Docket No. ER92-626 (E-120-050) Order Granting Leave to File Supplemental Testimony and Exhibits to FERC re PG&E - Docket No. ER92-595 & ER92-596 and Southern California Edison Company, PG&E, and San Diego Gas & Electric Company - Docket No. ER92-626 (E-120-050) ADJOURNMENT There being no further business, at the hour of 9:34 p.m., Mayor Moss declared the meeting adjourned. APPROVED: ____________________________ Mayor ATTEST: _______________________________ City Clerk