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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1994-02-011 02/01/94 City Council, Regular Meeting City Council Chambers Redding, California February 1, 1994 7:00 p.m. The Pledge of Allegiance to the Flag was led by City Attorney Hays. The Invocation was offered by Jesse Miller of the Good News Rescue Mission. The meeting was called to order by Mayor Arness with the following Council Members present: Anderson, Dahl, Kehoe, Moss and Arness. Also present were City Manager Christofferson, Assistant City Manager McMurry, City Attorney Hays, Director of Public Works Galusha, Director of Planning and Community Development Perry, Chief of Police Blankenship, Electric Utility Operations Manager Ryan, Electric Utility Resources Manager Coleman, Fire Chief Bailey, Director of Finance Downing, Principal Planner Keaney, Public Works Operations Manager Russell, Director of General Services Masingale, Director of Information Systems Kelley, Director of Utilities/Customer Service Vokal, Risk Manager Mlinarcik, Budget Services Officer Starman, Airports Operations Manager Dinger, Management Analyst Bachman, City Treasurer Linville, 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 9, 1993 Special Meeting of December 20, 1993 Regular Meeting of December 21, 1993 Regular Meeting of January 4, 1994 Regular Meeting of January 18, 1994 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 14, check numbers 202066 through 202657 inclusive, in the amount of $5,633,550.34, be approved and paid, and Payroll Register No. 15 check numbers 371725 through 372455 inclusive, in the amount of $854,171.21, and Automatic Payroll Deposits, check numbers 18101 through 18270 inclusive, in the amount of $244,598.95, for the period of January 2, 1994, through January 15, 1994, be approved. TOTAL: $6,732,320.50 Resolution - Appropriating Funds for Three Vehicles and Miscellaneous Equipment in Police Department * (B-130-070 & A-050-270) It is the recommendation of the Director of Finance that Resolution No. 94- 016 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 38th amendment to City Budget Resolution No. 93- 239 appropriating $76,350 for public safety purposes, specifically the purchase of three vehicles for the Police Department and miscellaneous equipment for five officers and authorizing the receipt of $76,350 in revenue. Resolution - Reimbursement of Capital Expenditures for Municipal Golf Course (D-050 & P-050-665) It is the recommendation of the Director of Finance that Resolution No. 94- 017 be adopted, 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. Tentative Subdivision Map S-5-93 - Star Subdivision, by Trinity Equity Funding (Southwest corner of Star Drive and Eastside Road) (S-101-004) It is the recommendation of the Director of Planning and Community Development that Council accept the report containing the map and conditions of approval for Tentative Subdivision Map S-5-93 approved by the Planning Commission granting permission to create nine single-family residential lots and two commercial lots on six acres located at the southwest corner of Star Drive and Eastside Road. 2 02/01/94 Tentative Subdivision Map S-7-93 - Rocky Point Estates, Unit 2, by Don Sherman (Lake Boulevard between Tamarack Drive and Panorama Drive) (S-100-665) It is the recommendation of the Director of Planning and Community Development that Council accept the report containing the map and conditions of approval for Tentative Subdivision Map S-7-93 approved by the Planning Commission granting permission to subdivide 9.7 acres into 23 single-family residential lots and a remaining 4.5-acre commercial parcel. Environmental Impact Report EIR-2-92 - by the City of Redding re Extension of Buenaventura Blvd. and the Realignment of the Railroad Avenue/Westside Road Intersection at Buenaventura Blvd. (L-010-075 & S-070-100-065) It is the recommendation of the Director of Planning and Community Development that Council accept the report transmitting the Final Environmental Impact Report EIR-2-92 and Mitigation Monitoring and Reporting Plan concerning the Buenaventura Boulevard Road Improvement Project. Set Public Hearing - re Plan Line for Buenaventura Boulevard/Westside Road/Railroad Avenue (L-010-200 & S-070-100-065) It is the recommendation of the Director of Planning and Community Development that a public hearing be set for 7:00 p.m., March 1, 1994, to consider the proposed road alignment for Buenaventura Boulevard south of Placer Road and the realignment of the Railroad Avenue/Westside Road intersection. Set Public Hearing - re Appeal of Denial of Variance Application V-16-93, by Russell Wade (2294 Paris Avenue) (L-010-410) It is the recommendation of the Director of Planning and Community Development that a public hearing be set for 7:00 p.m., February 15, 1994, to consider the appeal of denial of Variance Application V-16-93. The variance would validate the encroachment of an existing house addition and carport into the side-yard setback of an "R-1" Single-Family Residential District lot. Set Public Hearing - re Rezoning Application RZ-19-93, by Eckelman and Scarbrough, Inc. (Highland Oaks Subdivision, Units 4 & 5) (L-010-230 & S-100-282) It is the recommendation of the Director of Planning and Community Development that a public hearing be set for 7:00 p.m., February 15, 1994, to consider the request to rezone property from "U-FP" Unclassified with a Floodplain Combining District to "R1-BFM" Single-Family Residential District and "U-FP" Unclassified District. Resolution - Amendment No. 1 to Revolving Loan Fund Contract with Economic Development Corporation (G-100-030-038 & B-130-030-045 & E-050) It is the recommendation of the Director of Planning and Community Development that Resolution No. 94-018 be adopted, a resolution of the City Council of the City of Redding approving Amendment No. 1 to the agreement between the City of Redding and the Economic Development Corporation for an Economic Development Revolving Loan Fund Program, thereby permitting the maximum loan amount to be increased above the established limits upon review and approval by the City of Redding Loan Committee. Award of Bid - Bid Schedule No. 2821, Purchase of 12kV Vacuum Circuit Breakers for the Airport Substation Project (B-050-100) It is the recommendation of the Electric Utility Director that Bid Schedule No. 2821, purchase of 12kV vacuum circuit breakers for the Airport Substation Project, be awarded to the evaluated low bidder, WESCO, in the amount of $90,903.71. Funds for this purchase are included in the 1993 Electric System Project Financing Program, Job Order No. 9344-28. Award of Bid - Bid Schedule No. 2824, Plastic Utilities Duct (B-050-100) It is the recommendation of the Electric Utility Director that Bid Schedule No. 2824, plastic utilities duct, be awarded to North Valley Distributing in 3 02/01/94 the evaluated amount of $25,519.80, for the period of March 1, 1994, to February 28, 1995. Funds for this purchase are included in the 1993-94 budget. Resolution - Appropriating Funds to Purchase Fire Engine and Authorizing Receipt of Funds from Buckeye Fire Protection District for Same * (B-130-070 & B-050-100 & P-150-070-700) It is the recommendation of the Fire Chief that Resolution No. 94-019 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 40th amendment to City Budget Resolution No. 93-239 appropriating $160,000 for a fire truck and authorizing the receipt of $160,000 in revenue from the Buckeye Fire Protection District. Request to Sell Alcoholic Beverages - by Redding Rodeo Association (A-110-100) It is the recommendation of the City Clerk that Council approve the request of the Redding Rodeo Association to sell alcoholic beverages at a bull riding event to be held at the Redding Rodeo Association Rodeo Grounds on February 26, 1994, from 11:00 a.m. to midnight. Resolution - Objecting to Inclusion of Certain Parcels in Shasta County Tax Collector's Delinquent Tax Sale (A-170-100-330) It is the recommendation of the City Treasurer that Resolution No. 94-020 be adopted, a resolution of the City Council of the City of Redding objecting to the inclusion of Assessor's Parcel Numbers 115-170-01 and 115-250-01 in the Shasta County Tax Collector's Delinquent Tax Sale scheduled for February 18, 1994. Notice of Completion - Bid Schedule No. 2788, Repair of Benton Landfill Toe (B-050-020 & S-020-300) It is the recommendation of the Director of Public Works that Bid Schedule No. 2788 (Job No. 9924), Repair of Benton Landfill Toe, awarded to Doug Major, be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $123,513. Resolution Accepting Streets and Acceptance of Final Map and Improvements - Gold Hills Subdivision, Unit 3A (S-5-92) (East of Interstate 5 and south of Oasis Road) * (S-070-230 & S-100-237) It is the recommendation of the Director of Public Works that Resolution No. 94-021 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation Hope Lane in the Gold Hills Subdivision, Unit 3A. It is further recommended that the improvements in Gold Hills Subdivision, Unit 3A, developed by Mr. and Mrs. Thomason, be accepted as satisfactorily completed, and the City Clerk be instructed to file the Map with the Shasta County Recorder. Resolution - Awarding Contract to Harris & Associates for Construction Management Team for Corporation Yard and Transfer Station (C-050-100-040 & S-020-650) It is the recommendation of the Director of Public Works that Resolution No. 94-022 be adopted, a resolution of the City Council of the City of Redding approving entering into the "Master Agreement for Consulting Services for Construction Management Services for the City of Redding" by and between the City of Redding and Harris & Associates, not to exceed $698,830.00, for the corporation yard and transfer station; and authorizing the Mayor to execute the same. Resolution Accepting Streets and Acceptance of Improvements - Ravenwood Subdivision, Units 14, 15, and 16 (S-10-89) (South of Old Alturas Road and east of Shasta View Drive) * (S-070-230 & S-100-614) It is the recommendation of the Director of Public Works that Resolution No. 94-023 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation Salmonberry Drive, Antigua Drive, Imperial Drive, Trumpet Drive, and French Lace Lane in Units 14, 15, and 16 of the Ravenwood Estates Subdivision. 4 02/01/94 It is also recommended that the improvements in Ravenwood Subdivision, Units 14, 15, and 16, be accepted as satisfactorily completed, and the City Clerk instructed to return the securities to the developer, Donald Lynn. Traffic Impact Program (T-080-400) It is the recommendation of the Director of Public Works that Council concur with the Report to City Council dated January 26, 1994, incorporated herein by reference, concerning the Traffic Impact Program and direct staff to present an updated Traffic Impact Fee report that includes a traffic impact fee update. Draft California Water Plan Update (S-050-430) It is the recommendation of the Director of Public Works that Council authorize the Mayor to sign a letter listing the City's comments, as outlined in the Report to City Council dated January 27, 1994, incorporated herein by reference, regarding Draft California Water Plan Update (Bulletin 160-93). Acceptance of Waterline - Commercial Subdivision North of Redding Municipal Airport and Authorize Reimbursement for Oversizing (W-030-725 & L-010-150) It is the recommendation of the Director of Public Works that Council accept the 16-inch waterline improvements in the commercial subdivision located east of Airport Road and north of Redding Municipal Airport as satisfactorily completed. It is further recommended that Council authorize the Finance Department to make payment to Shasta Enterprises in the amount of $30,717.74 for the oversizing of the water main per the City's master plan. Resolution - Appropriating Additional Funds re Bid Schedule No. 2811, Redding Municipal Airport Sign Installation and Runway 12-30 Lighting * (B-130-070 & B-050-020) It is the recommendation of the Director of Public Works that Resolution No. 94-024 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 41st amendment to City Budget Resolution No. 93- 239 appropriating $30,000 for Bid Schedule No. 2811 (Job No. 9314), Redding Municipal Airport sign installation and Runway 12-30 lighting, and authorizing the receipt of $30,000 in revenue from the Federal Aviation Administration and Caltrans Aeronautics Division, State Loan Program. MOTION: Made by Council Member Dahl, 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, Dahl, Kehoe, Moss and Arness Noes: Council Members - None Absent: Council Members - None Resolution Nos. 94-016, 94-017, 94-018, 94-019, 94-020, 94-021, 94-022, 94- 023 and 94-024 are on file in the office of the City Clerk. - - - - - - - - LETTER OF RESIGNATION - from Bill Tonkin, Recreation and Parks Commission (B-080-350) City Clerk Strohmayer indicated that a letter of resignation was received from Recreation and Parks Commissioner Bill Tonkin effective immediately. Mr. Tonkin stated that the City is fortunate to have a superior Recreation and Parks Department and commended Director Tom Riley and his staff for their efforts. MOTION: Made by Council Member Moss, seconded by Council Member Kehoe, accepting Bill Tonkin's resignation from the Recreation and Parks Commission effective immediately. The Vote: Unanimous Ayes PUBLIC HEARING - re Rezoning Application RZ-17-93, by the City of Redding (River Ridge Terrace Subdivision, Unit 1, River Ridge Park Subdivision, Units 1-3, and Stanford Manor Subdivision) 5 02/01/94 (L-010-230 & S-100-654-700 & S-100-654-600 & S-100-705-960) The hour of 7:00 p.m. having arrived, Mayor Arness opened the public hearing regarding Rezoning Application RZ-17-93. 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 25, 1994 City Clerk Strohmayer advised that no protests were received. Director of Planning and Community Development Perry related that the Planning Commission, at its meeting of January 11, 1994, recommended approval of a request to rezone property within River Ridge Terrace Subdivision, Unit 1, River Ridge Park Subdivision, Units 1 through 3, and Stanford Manor Subdivision, from "U" Unclassified District to "U-F" Unclassified and "R-1" Single-Family Residential Districts, or more restrictive districts. This rezoning was initiated as part of the process of updating the zoning maps to more accurately reflect new development. It is the recommendation of the Planning Commission and staff that Council ratify the Negative Declaration and offer the necessary ordinance for first reading. Mayor Arness 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, approving the rezoning as recommended by staff and making the following findings regarding Rezoning Application RZ-17-93: 1. Project is compatible with the Redding General Plan; 2. Project will not significantly alter existing land form; 3. Project is compatible with the 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 January 11, 1994. The Vote: Unanimous Ayes Council Member Anderson offered Ordinance No. 2078 for first reading, an ordinance of the City Council of the City of Redding amending Section 18.06.020 of the Redding Municipal Code relating to the rezoning of certain real property in the City of Redding to "U-F" Unclassified District and "R- 1" Single-Family Residential District (RZ-17-93). ORDINANCE NO. 2075 - re Rezoning Application RZ-15-93, by Sam Tumino (2190 Westwood Avenue) (L-010-230) MOTION: Made by Council Member Dahl, seconded by Council Member Moss, that the full reading of Ordinance No. 2075 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Moss, seconded by Council Member Dahl, that Ordinance No. 2075 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 "C2-F" Central Commercial District (RZ-15-93). Voting was as follows: Ayes: Council Members - Anderson, Dahl, Kehoe, and Moss Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Arness Ordinance No. 2075 is on file in the office of the City Clerk. ORDINANCE NO. 2076 - re Rezoning Application RZ-18-93, by the City of Redding (East Ridge Estates, Unit 3) (L-010-230) MOTION: Made by Council Member Dahl, seconded by Council Member Moss, that the full reading of Ordinance No. 2076 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes 6 02/01/94 MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, that Ordinance No. 2076 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 "R1-BFM" Single-Family Residential District (RZ-18-93). Voting was as follows: Ayes: Council Members - Anderson, Dahl, Kehoe, and Moss Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Arness Ordinance No. 2076 is on file in the office of the City Clerk. ORDINANCE NO. 2077 - re Amendment of Redding Municipal Code Chapter 10.20: Public Parks-Prohibited Activities (A-110-100 & A-110-070) MOTION: Made by Council Member Dahl, seconded by Council Member Moss, that the full reading of Ordinance No. 2077 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Anderson, seconded by Council Member Dahl, that Ordinance No. 2077 be adopted, an ordinance of the City Council of the City of Redding amending Redding Municipal Code Chapter 10.20, Public Parks- Prohibited Activities, specifically authorizing the City Manager to approve requests involving the sale of alcoholic beverages on City-owned property and adding new parks. Voting was as follows: Ayes: Council Members - Anderson, Dahl, Kehoe, and Moss Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Arness Ordinance No. 2077 is on file in the office of the City Clerk. Resolution - Dealing with the State Property Tax Shift and Proposal re Street Light Responsibility * (B-130-070 & T-010-650 & E-090-150) City Manager Christofferson recalled that during budget study sessions there was some degree of uncertainty with regard to where the state property tax shift would stabilize and what its effect might be on the General Fund. Due to the uncertainty of the picture, staff suggested that the City Council make no effort to meet the estimated $875,000 cost during budget studies. The City Council concurred with this recommendation. Mr. Christofferson explained that the magnitude of the property tax loss as a result of the state action will be $890,405 this year, with approximately such a cost recurring (and probably growing) in future years. He stated that one possible means of meeting this property tax shift by the State would be to transfer responsibility for street lighting costs from the General Fund to the Electric Fund, thus freeing up General Fund dollars allocated for street lighting purposes. Mr. Christofferson contended that such a change would represent a legitimate and appropriate public policy, as it is a philosophical question of whether the electric ratepayers or the City taxpayers (which are essentially the same) should bear such a cost. Mr. Christofferson noted that a couple of decades ago the Electric Fund paid for the street lighting costs. Conversations with former City Managers Bill Brickwood and Bob Courtney revealed how the transition of these costs to the General Fund transpired. Mr. Christofferson stated that the Electric Utility Director advises that such an action "...would not trigger the rate mechanism review process (e.g. a rate increase) at this time," and that the long-term effects will be minimal when combined with other events. He acknowledged that there is a cost involved, as there is obviously a dollar-for-dollar transfer. The potential impact to the Electric Utility during the 1995 fiscal year, if isolated from all other impacts, is slightly less than 2 percent of the rate structure. Coincidentally, the street light line item, at $880,000, is very close to the property tax shift. Last year's actual cost was $784,000. 7 02/01/94 Mr. Christofferson related that if the transfer of responsibility does not occur and if no other alternative is found, the General Fund balance at year-end would be approximately $81,000, or a .2 percent reserve. If the street lighting responsibility is shifted, the General Fund's balance at year-end is estimated at $981,000, representing a 3 percent reserve. He provided a viewgraph depicting the City's electric rates in comparison to other California cities both before the transfer of street lighting responsibility and after. Mr. Christofferson stressed that all factors considered, the transfer of the street lighting responsibility from the General Fund to the Electric Fund is clearly the best available way to meet the responsibility imposed on the City by the State. He recommended that the City Council direct staff to take the necessary steps to implement such a transfer for fiscal year 1993- 94. Bill Potter, Electric Utility Commissioner, 4100 Cheryl Drive, read his written comments, incorporated herein by reference, into the record stating his opposition to transferring responsibility for street lighting costs from the General Fund to the Electric Fund. Walter P. McNeill, Electric Utility Commissioner, 4149 Boston Avenue, summarized his letter dated January 31, 1994, incorporated herein by reference, requesting that the City Council refer the street lighting matter to the Electric Utility Commission for consideration and recommendation. Kent Dagg, Shasta Builders' Exchange, related that the Exchange did not have ample time to take a position on this matter. He stated that the matter needed to be reviewed in greater detail and encouraged the City Council to refer the matter to the Electric Utility Commission. Sam Parsons, 9th and West Street, stated that if the City Council approves staff's recommendation, it will broaden the gap further between the City Council and the public. He suggested that the City Council take additional time and give the matter further consideration. In response to Council Member Moss, Mr. Christofferson related that the $880,000 charge is a composite figure, of which actual power costs is a minor portion. Council Member Moss pointed out that the City Council had conceptually approved an electrical rate increase for 1993 of 6.5 percent. It turned out, however, that the increase was not needed. The Electric Department's proposed rate adjustments are just projections and are dependent upon many external factors. He related that the General Fund departments have continued to perform well while absorbing a 20 percent revenue loss in the last three years. He indicated that the City Council has the ability to direct the Electric Department to absorb the $880,000 utilizing cost cutting measures. He did not envision where this action would result in a 2 percent increase to the electric ratepayers. Council Member Moss emphasized that prior to Proposition 13, the General Fund was very healthy and City Councils chose to subsidize various City functions with General Fund monies instead of raising rates. Council Member Dahl questioned the status of the reserve if the street lighting responsibility is not shifted. Mr. Christofferson responded that the reserve would be zero, with an expected year-end balance of approximately $200,000. Council Member Dahl commented that it would be very difficult to deal with a zero reserve at year end and recalled that the City Council committed to a 3 percent General Fund reserve. He explained that the Electric Utility Commission (EUC) was formed to provide objective view points on utility related matters. Based on testimony received this evening, he did not believe that there would not be a great deal of objectivity if the matter were referred to the EUC. He emphasized that any decision to raise rates rests with the City Council, and an alternative would be to direct the Electric Utility Department to absorb the $880,000 cost without a rate increase. He opined that a beneficial role of the EUC would be to assist the director in finding methods of absorbing this cost, as the General Fund is no longer able to absorb this expenditure. 8 02/01/94 Mr. Christofferson expressed confidence that the cost could be absorbed by the Electric Utility Department without layoffs or a rate increase. Council Member Kehoe remained opposed to the concept and believed it was tantamount to a 2 percent tax increase. If there was some overwhelming assurance that the electrical utility rates would not be increased as a result of the action, Council Member Kehoe said he might consider the matter more favorably. Council Member Anderson concurred with Council Member Kehoe. He reiterated that if there were some method of ensuring that the action would not trigger a rate adjustment he might look at it more favorably. MOTION: Made by Council Member Dahl, seconded by Council Member Moss, to transfer the street light responsibility from the General Fund to the Electric Fund and adopt Resolution No. 94-25, a resolution of the City Council of the City of Redding approving and adopting the 42nd amendment to City Budget Resolution No. 93-239 appropriating $880,000 for street lighting costs. Voting was as follows: Ayes: Council Members - Dahl, Moss and Arness Noes: Council Members - Anderson and Kehoe Absent: Council Members - None Resolution No. 94-025 is on file in the office of the City Clerk. REQUEST FROM STATE PARKS DEPARTMENT - re Processing Parking Tickets (P-030-300-100) Management Analyst Bachman related that the change in State law which decriminalized parking violations was fully implemented as of January 1, 1994. This is the reason that the City must now have its own Administrative Hearing Officer to adjudicate in instances when parking citations are contested. Mr. Bachman explained that the State Department of Parks and Recreation has contacted the City to determine if it would be interested in processing their parking citations. Under the terms of the contract, the City would retain the entire fine amount in return for processing the citations. Currently, parking fines range from $15 for a minor violation to $275 for parking in a disabled zone. The City's cost for processing the citations is currently being reviewed, but certainly is less than $5 per citation. The volume of citations would be extremely low, approximately 20 to 40 per year, compared to approximately 7,500 processed by the City. The additional citations could be handled by existing staff and would permit the State Department of Parks and Recreation to continue writing parking citations when necessary, without having to go to the expense of setting up a processing system. It is the recommendation of staff that Council authorize staff to prepare a contract with the State Parks and Recreation Department for processing parking citations. MOTION: Made by Council Member Anderson, seconded by Council Member Dahl, authorizing staff to prepare a contract with the State Parks and Recreation Department for the processing of their parking citations. The Vote: Unanimous Ayes RESOLUTION - Approving Policies re Enhancement of Economic Development Incentive Program (A-050-060-555 & E-050) Assistant City Manager McMurry provided an overview of the Report to City Council dated January 27, 1994, incorporated herein by reference, regarding the enhancement of the City's Economic Development Incentive Program. Mr. McMurry summarized the program as follows: 1) Authorize an industrial or manufacturing firm which expands in Redding, or locates here and brings with it a minimum of ten new jobs, to defer for a period of five years the development fees normally due and payable at the time of issuance of a building permit or Certificate of Occupancy. The fees would be paid in increments of 20 percent per year over that five-year deferral period, and 9 02/01/94 the City would receive interest on the fees that are deferred; 2) Establish a Jobs Credit Program which would permit a manufacturer who expands locally and creates ten full-time jobs, or a manufacturer who is attracted to locate in Redding and brings with it ten full-time jobs, to receive a credit against development fees otherwise payable in an amount ranging from $500 to $1,500 per job; and 3) Forgive personal property taxes due and payable from a qualified manufacturer for a period of five years from the date when new "qualified manufacturing equipment" is placed in service. This kind of manufacturing equipment is taxable at approximately one percent of its value, and the City receives approximately 15 percent of that one percent, and therefore the firm could receive a significant tax advantage for five years by locating here. It is recommended that the City Council adopt the necessary Council policies implementing the three aforementioned incentive proposals. It is also recommended that staff develop the programs to measure the economic impact of the new jobs created and to measure the impacts of any loss of revenue that these incentives may generate. Finally, it is recommended that the City Council place a three-year sunset on this program, and direct staff to bring back an evaluation of its effectiveness in the spring of 1997. In response to Mayor Arness, Mr. McMurry clarified that the mandatory $10.00 wage requirement for personal property tax rebates is one of the conditions set forth in the State law permitting cities to authorize said rebates. Lance Frederickson, Executive Director of the Shasta Business Council congratulated the City on its proposed economic development incentive program. He requested that the following items be given further consideration: 1) The definition of "industrial" and "manufacturer" needs to be clarified so as to not exclude such potential businesses as Walmart, Mercy Medical Center, Foothill Distributing, CH2M Hill and Citizens Utilities; 2) The five-year Fee Deferral Program as outlined in the policy would actually be a four-year program. He suggested substituting "time of issuance of the occupancy permit" instead of "time of issuance of building permit;" 3) Requested that some sort of formula be utilized if the number of jobs drop below the mandated 10 positions. Forcing the business to pay in full any fee deferral or job credits might further compound their economic problem; and 4) He expressed concern about the statement that all infrastructure necessary to serve the new or expanded facilities must be in place to qualify for job credits and fee deferral. He did not want this definition to include such items as streets or an overpass, thereby delaying application for the receipt of job credits. Mr. McMurry clarified that in order to qualify for job credits and fee deferral, the intent was that all infrastructure necessary for the issuance of a Certificate of Occupancy would need to be in place. Council Member Dahl commended staff for their work on the project. He noted that the policy can be amended at a later date if problems are encountered. Council Member Anderson questioned if another definition other than industrial or manufacturing could be used to address some of the concern expressed by Mr. Frederickson. Mr. McMurry indicated that the term "distribution" could be added, however, it would open the field up considerably to potential businesses. Director of Planning and Community Development Perry suggested that further clarification might be necessary as there is local wholesale distribution and regional distribution. Mr. Perry stated that this is just a policy which would be implemented by a written contract. In response to Council Member Kehoe, Mr. McMurry explained that State law would not permit pro-rating the personal property tax fees if the number of employees were to drop below 10. He noted that there has to be a cutoff at some point. MOTION: Made by Council Member Dahl, seconded by Council Member Moss, that Resolution No. 94-026 be adopted, a resolution of the City Council of the City of Redding adopting two policies relative to the enhancement of the Economic Development Incentive Program, specifically the creation of a Jobs Credit and Fee Deferral Program and Economic Development/Personal Property Tax Rebate for Qualified Manufacturing Property. Voting was as follows: 10 02/01/94 Ayes: Council Members - Anderson, Dahl, Kehoe, Moss and Arness Noes: Council Members - None Absent: Council Members - None Resolution No. 94-026 is on file in the office of the City Clerk. EQUIPMENT FINANCING - Extend Financing with United Financial of Illinois, Inc. (D-050-400-100) Director of Finance Downing related that the City Council, at its meeting of November 17, 1993, approved entering into a lease purchase agreement with United Financial of Illinois, Inc. (United Financial) for the purchase of equipment valued at $420,000. This lease arrangement was bid in October 1993, when interest rates dropped to a new 20-year low point. Consequently, an interest rate of 5.08 percent was received for the five-year lease. Ms. Downing explained that United Financial has indicated a willingness to extend that lease purchase agreement to include additional equipment. Staff estimates, based on informal interest quotes received this week, that new lease agreements would stipulate interest rates of 5.4 percent or higher. It is anticipated that interest rates will gradually increase throughout 1994. Mr. Downing stated that arrangements have been completed to extend the United Financial agreement to cover the remaining purchases identified in the 1993-94 budget. The financing could also be extended to cover equipment purchases anticipated during the first quarter of fiscal year 1994-95. If the City were not able to utilize the reserved lease capacity, $1,800,000, by the end of September 1994, the interest rate of lease agreements finalized after that date would be adjusted based on the change in interest rate of U. S. Treasury obligations and would not result in above-market interest rates. It is the recommendation of staff that Council provide its conceptual approval to extend the lease financing agreement with United Financial to $1,800,000 in future equipment purchases, thus securing a below-market interest rate for equipment purchases through September 1994. MOTION: Made by Council Member Anderson, seconded by Council Member Kehoe, to conceptually approve the extension of the lease financing agreement with United Financial of Illinois, Inc. to $1,800,000 in future equipment purchases, thereby securing a below-market interest rate for equipment purchases made through September 1994. The Vote: Unanimous Ayes ACQUISITION OF PROPERTY - 2765 Old Alturas Road (C-070-010) Director of Planning and Community Development Perry explained that the Planning Commission, at its meeting of January 11, 1994, held a public hearing on Variance Application V-14-93 by Brian Burk, representing the property owner, Joseph M. Paulazzo. The variance request is to construct a mobilehome and detached garage that encroaches into both the front- and rear-yard setbacks on the parcel. Mr. Perry indicated that the reason the Planning Commission referred the property to the City Council is that Old Alturas Road is planned as a limited-access, four-lane street with the only access occurring at intersections. Essentially, this will be a significant east/west arterial. Approval of the variance opens the door for the establishment of a use on the property and the future need for the city to acquire a developed parcel for access control. Since the property cannot be developed without a variance, denial of the variance would be denying the right to develop. Mr. Perry stated that ideally this parcel would be acquired and merged with the property to the south. In the meantime, it is to the advantage of the City to seek title to eliminate a driveway via Old Alturas Road that would otherwise occur. It is the recommendation of staff that the City Council direct staff to get an appraisal and determine if the property can be acquired by purchase or trade. MOTION: Made by Council Member Anderson, seconded by Council Member Kehoe, to direct staff to obtain an appraisal on property located at 2765 Old 11 02/01/94 Alturas Road and determine if the property can be acquired by either purchase or trade. The Vote: Unanimous Ayes REGULATION OF CABLE RATES (T-040-050) Director of Planning and Community Development Perry provided an overview of the Report to City Council dated January 25, 1994, incorporated herein by reference, regarding whether or not the City should regulate rates for the basic cable tier. Mr. Perry noted that the current federal rate freeze is scheduled to expire on February 15, 1994, however, there has been some discussion that this date will be extended. Mr. Perry stated that from staff's perspective, the field is dynamic, subject to considerable change, and still evolving. The choice is to err on the side of the consumer at some cost or to find that there is not any compelling reason to enter a field the City has not occupied for the last nine or ten years. At this point, it was suggested that the City Council exercise its option, even though it may choose to limit its review if the rates seem reasonable. John Kenny, Law Offices of Moss and Enochian, representing Viacom Cablevision, indicated that the cable rate industry is in a state of flux. The concept, however, allows cities to regulate cable rates. The federal government's requirements regarding the rates have not been finalized. He urged the City Council not to take any definitive action at the present time. Council Member Dahl concurred that the City Council is not in a position to regulate cable rates. In response to Council Member Dahl, Mr. Perry stated that the regulation of cable rates would require either staff time, consultant time, or both. Currently, the franchise fee paid by Viacom is utilized for General Fund purposes, thereby indicating that any staff related work would be paid for by the General Fund. In response to Mayor Arness, Mr. Perry clarified that the City could opt to regulate cable rates at any time. The only requirement would be to provide notice to Viacom. At the request of Council Member Moss, Mr. Rasmussen, General Manager of Viacom, committed that Viacom would provide the City with 45 days notice before making an application for a rate increase. MOTION: Made by Council Member Anderson, seconded by Council Member Moss, to take no action regarding cable rate regulation and submittal requirements at the present time subject to the receipt of a letter from Viacom committing to notifying the City 45 days in advance of making an any application for a rate increase. The Vote: Unanimous Ayes DISPOSITION OF FORECLOSED PROPERTY - 850 Quartz Hill Road (A-170-100-330) Director of Planning and Community Development Perry related that in 1989, the City Council adopted a resolution authorizing foreclosure by Superior Court Action on Assessor parcel number 115-170-01 because of delinquent Lake Keswick Sewer Assessments. Subsequently, litigation ensued, and in April 1992, the City received a Judgement of Foreclosure, authorizing sale of the property to satisfy the lien. The judgement was appealed. In July 1993, the decision was reaffirmed in the 3rd District Court of Appeals in Sacramento. Mr. Perry explained that as of December 1993, a total of $867,692 in liens was owning against the property. The property has been scheduled for tax sale by the County on February 18, 1994, to satisfy delinquent property taxes and a water assessment. Under a separate Council item, the City Council adopted a resolution objecting to the sale to protect the City's sewer assessment lien. Mr. Perry indicated that a tentative subdivision map has been approved by the City and is effective until July 1996. The map covers 95 acres of the 12 02/01/94 115 acre parcel. An appraisal completed in September 1993 established the fair market value of the property at $605,000, assuming that the property is free and clear of all liens and encumbrances. The prospective bulk value of the property, if developed under the current subdivision map, is $3,130,000. Mr. Perry stated that until the property is sold, or until ownership vests in the City of Redding, property taxes and delinquent assessments will continue to accrue. Whether or not there will be a successful bidder at the tax sale is, of course, unknown. Regardless, the City's sewer assessment lien will remain in place. The Lake Keswick Sewer Assessment reserves in the amount of $74,632 have been depleted, and the general fund is now paying the bondholder for the sewer assessment. It is the recommendation of staff that the City Council authorize staff to seek a buyer or buyers. If a buyer cannot be found in the next 60 days, staff will return to the Council for further direction. In order to assist in the sale, it is further recommended that if a real estate agent finds a buyer at fair market value, that staff be authorized to indicate a five- percent real estate commission would be allowed. Further, that the City would request court approval to split the property if necessary to broaden the market potential. City Attorney Hays reiterated that if the property is sold, all previous liens would go with the property. MOTION: Made by Council Member Dahl, seconded by Council Member Moss, authorizing staff to seek a buyer for the property located at 850 Quartz Hill Road, authorize staff to indicate a five-percent real estate commission would be allowed for a real estate agent locating a buyer at fair market value, and authorize the City to seek court approval to split the property if necessary to broaden the market potential. The Vote: Unanimous Ayes REQUEST TO ACCEPT PROPOSAL - re Bid Schedule No. 2826, Worker's Compensation Claims Administration (B-050-100 & R-100-950-100) Risk Manager Mlinarcik indicated that the City's current workers' compensation claims administration has been performed by Fleming & Associates since 1986. Due to the extraordinary circumstances of the Los Angeles earthquake, however, they were unable to complete their proposal and submit it to the City by January 20, 1994. In addition, the operations of UPS were seriously impacted, thereby contributing to the late receipt of the proposal. Given the extraordinary circumstances of the earthquake which caused the delay in submission of the proposal, staff is recommending that the City Council permit the late receipt of the proposal from Fleming & Associates. The proposal has remained unopened in the City Clerk's Office pending Council's decision. MOTION: Made by Council Member Dahl, seconded by Council Member Moss, authorizing staff to accept the late receipt of the proposal submitted by Fleming & Associates for Bid Schedule No. 2826, Worker's Compensation Claims Administration. The Vote: Unanimous Ayes PUBLIC COMMENT (E-050 & L-040-070-040) Randy Scott, of the Phoenix Institute, provided an overview of his letter dated February 1, 1994, incorporated herein by reference, requesting any suggestions and assistance the City may be able to provide to aid in his firm locating in the City of Redding. Mayor Arness suggested that Mr. Scott continue to work closely with Assistant City Manager McMurry and Jim Zauher of the Economic Development Corporation. Naomi Myers, Secretary of the California Council of the Blind-Shasta County Chapter (Council), expressed concern about improvements being made under the Americans with Disabilities Act relative to the blind. Transportation Coordinator Duryee and Management Analyst Sciarra will be addressing the Federal Transportation Administration on behalf of the Council. The 13 02/01/94 Council, however, has a number of complaints and would prefer to address the Federal Transportation Administration directly. Mayor Arness directed staff to transmit a copy of the Americans with Disabilities Act report considered by the Shasta County Regional Transportation Planning Agency (RTPA) on February 1, 1994. He suggested that the Ms. Myers direct any comments regarding the report directly to the RTPA. ADJOURNMENT There being no further business, at the hour of 9:14 p.m., Mayor Arness declared the meeting adjourned. APPROVED: ____________________________ Mayor ATTEST: _______________________________ City Clerk