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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1994-07-05 -Special City Council, Special Meeting City Hall Conference Room A Redding, California July 5, 1994 12:00 Noon The meeting was called to order by Mayor Anderson with the following Council Members present: P. Anderson, Kehoe, McGeorge, Murray and R. Anderson. Also present were Interim City Manager McMurry, City Attorney Hays, Director of Electric Utility Lindley, Electric Utility Operations Manager Ryan, Electric Utility Power Plant Manager Heckenberg and Special Counsel Dugan Barr. CLOSED SESSION (L-100) Mayor Anderson stated that the City Council would adjourn to closed session to discuss the following: (1) Pursuant to California Government Code Section 54956.9(b)(1), anticipated litigation between the City of Redding and MLP Energy; (2) Pursuant to California Government Code Section 54956.9(a), existing litigation, Harlan D. Eakens, et al., v. City of Redding, Shasta County Superior Court Case No. 112811; (3) Pursuant to California Government Code Section 54956.9(a), existing litigation, a) Allison Sanders, et al., v. Harold Homan, et al., and City of Redding, et al., v. Allison Sanders, et al., Shasta County Superior Court Consolidated Case Nos. 90422 and 95734; and b) City of Redding v. Shasta Enterprises, et al, and related cross-action; Shasta County Superior Court Consolidated Case Nos. 87226 and 95735; (4) Pursuant to California Government Code Section 54956.9(a), existing litigation, City of Redding v. Don Rochlitz, Inc., Shasta County Superior Court Case No. 92902; and (5) Pursuant to California Government Code Section 54956.9(a), existing litigation, Patrick Buckley and Personal Watercraft Industry Association, Plaintiffs and Appellants, v. City of Redding, Defendant and Appellee; Shasta County Superior Court Case No. 119062; and United States Court of Appeals for the Ninth Circuit Case No. 93-17277 At the hour of 12:00 noon, Mayor R. Anderson declared the meeting adjourned to closed session. At the hour of 3:15 p.m., Mayor R. Anderson reconvened the meeting to regular session. The City Council noted that it had authorized an appeal in the Eakens matter on the question of the availability of damages for the loss of goodwill. ADJOURNMENT There being no further business, at the hour of 3:15 p.m., Mayor R. Anderson declared the meeting adjourned. APPROVED: Mayor ATTEST: City Clerk City Council, Regular Meeting City Council Chambers Redding, California July 5, 1994 7:00 p.m. The Pledge of Allegiance to the flag was led by City Attorney Hays. The Invocation was offered by Jonathan Boring, First Baptist Church. The meeting was called to order by Mayor R. Anderson with the following Council Members present: P. Anderson, Kehoe, McGeorge, Murray and R. Anderson. Also present were Interim City Manager McMurry, City Attorney Hays, Director of Public Works Galusha, Director of Electric Utility Lindley, Director of Planning and Community Development Perry, Electric Utility Operations Manager Ryan, Electric Utility Resources Manager Gilfoy, Director of Finance Downing, Principal Planner Keaney, Director of General Services Masingale, Director of Information Systems Kelley, Senior Planner King, Associate Planner Manuel, Associate Planner Hanson, Budget Services Officer Starman, City Treasurer Linville, City Clerk Strohmayer, and Secretary to City Council Rudolph. 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. 24, check numbers 207904 through 208591 inclusive, in the amount of $5,459,392.64, be approved and paid, Payroll Register No. 26, check numbers 379976 through 380796 inclusive, in the amount of $904,394.17, and Automatic Payroll Deposits, check numbers 20086 through 20281, in the amount of $296,157.05, for a total of $1,200,551.22, for the period June 5, 1994, through June 18, 1994, be approved. TOTAL: $6,659,943.86 Treasurer's Report - May 1994 (A-050-100-600) Total Treasurer's Accountability - $ 61,766,638.07 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities - $245,936,497.78 Cash Reconciliation Report - May 1994 (F-205-095-650) It is the recommendation of the Director of Finance that the Cash Reconciliation Report for May 1994 be accepted. Resolution - Agreement with County of Shasta re Processing Parking Ticket Citations (P-030-300-100) It is the recommendation of the City Manager's Office that Resolution No. 94- 181 be adopted, a resolution of the City Council of the City of Redding authorizing entering into an agreement to process parking citations for the County of Shasta to be signed by the Interim City Manager. Resolution - Funding Agreement with Superior California Development Council for fiscal year 1994-95 (B-130-030 & B-080-500) It is the recommendation of the Interim City Manager that Resolution No. 94- 182 be adopted, a resolution of the City Council of the City of Redding approving the Funding Agreement, in the amount of $7,060, between the City of Redding and the Superior California Development Council to provide regional planning for economic and public works project development during 1994-95, and authorizing the Mayor to sign same following approval by the Superior California Development Council. Resolution - Funding Agreement with Economic Development Corporation for fiscal year 1994-95 (B-130-030-045 & B-080-150) It is the recommendation of the Interim City Manager that Resolution No. 94- 183 be adopted, a resolution of the City Council of the City of Redding approving the Funding Agreement between the City of Redding and the Economic Development Corporation for industrial promotion in the Redding area during fiscal year 1994-95, and authorizing the Mayor to sign same following approval by the Economic Development Corporation Board of Directors. The Funding Agreement provides for $96,000 for general marketing and the Sales and Client Services Program and $30,000 for Enterprise Zone marketing and administration. Resolution - Appropriation Limit for fiscal year ending June 30, 1995 (B-130-070) It is the recommendation of the Director of Finance that Resolution No. 94-184 be adopted, a resolution of the City Council of the City of Redding establishing the appropriation limit for fiscal year 1994-95 for the City of Redding at $79,671,236. Resolution - Property Tax Exchange Agreement for Annexation 94-1, Oasis Road Area (T-010-650 & A-150-250) It is the recommendation of the Director of Planning and Community Development that Resolution No. 94-185 be adopted, a resolution of the City Council of the City of Redding involving property tax transfers between the County of Shasta and the City of Redding for the City of Redding Reorganization No. 94-1, Oasis Road Area. Set Public Hearing - re Rezoning Application RZ-6-94, by the City of Redding (Ravenwood Estates Subdivision, Units 1-9, and Shasta View Manor Subdivision) (L-010-230) It is the recommendation of the Director of Planning and Community Development that a public hearing be set for 7:00 p.m., August 2, 1994, to consider the request to rezone property located within Ravenwood Estates Subdivision, Units 1-9, and Shasta View Manor from "U" Unclassified District to "R-1" Single- Family Residential District and "R-2" Duplex Residential District. Electric Department Project Status Report - Quarter Ending June 30, 1994 (A-050-125) It is the recommendation of the Electric Utility Director that the Project Status Report for the quarter ending June 30, 1994, be accepted. Award of Bid - Bid Schedule No. 2872, Three Phase Pad Type Distribution Transformers (B-050-100) It is the recommendation of the Electric Utility Director that Bid Schedule No. 2872, three phase pad type distribution transformers, be awarded to the evaluated low bidder, General Electric Supply Company, in the evaluated amount of $484,513.32 (delivered cost $240,191.00) for the period August 1, 1994, through July 31, 1995. Resolution - Approving Additional Uniform Allowance, Educational Incentive, and Deferred Benefit Payout Language for Redding Police Management Association (P-100-050-128) It is the recommendation of the Personnel Director that Resolution No. 94-186 be adopted, a resolution of the City Council of the City of Redding (1) rescinding Resolution No. 92-300 effective midnight, July 2, 1994, and (2) establishing new Miscellaneous Employee Benefit Policies for unrepresented employees not covered by a Memorandum of Understanding, effective July 3, 1994, specifically approving additional uniform allowance, educational incentive, and deferred benefit payout language for Redding Police Management Association. Resolution - Amending Resolution No. 94-93 to Include a Geographic Information System Coordinator Classification (P-100-320) It is the recommendation of the Personnel Director that Resolution No. 94-187 be adopted, a resolution of the City Council of the City of Redding amending Resolution No. 94-93 by repealing Exhibits B-2 and B-3 and adding new Exhibits B-2 and B-3 to include a new classification, Geographic Information System Coordinator. Resolution - Authorizing Negotiation on the Open Market for Recycling Equipment (B-050-100 & S-020-500 & G-100-170) It is the recommendation of the Director of General Services that Resolution No. 94-188 be adopted, a resolution of the City Council of the City of Redding declaring that, as no bids were received, the plastic processing equipment system advertised in Bid Schedule No. 2873 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. The State Department of Conservation will reimburse the City within 30 days of receipt of proof of purchase. Resolution - Authorizing Destruction of Documents (A-050-055-750) It is the recommendation of the City Clerk that Resolution No. 94-189 be adopted, a resolution of the City Council of the City of Redding authorizing the destruction of certain documents. Resolution - Lease and Funding Agreement with Shasta County Arts Council for fiscal year 1994-95 (B-130-030 & C-070-100 & C-050-500) It is the recommendation of the Director of Community Services that Resolution No. 94-190 be adopted, a resolution of the City Council of the City of Redding approving the Lease and Funding Agreements entered into between the City of Redding and the Shasta County Arts Council, effective July 1, 1994, and authorizing the Mayor to sign on behalf of the City. Funding support in the amount of $20,700.00 will be provided during the 1994-95 fiscal year. Resolution - Promotional Agreement with Shasta Cascade Wonderland Association, Inc. for fiscal year 1994-95 (B-130-030-070) It is the recommendation of the Director of Community Services that Resolution No. 94-191 be adopted, a resolution of the City Council of the City of Redding approving the Promotional Agreement entered into between the City of Redding and the Shasta-Cascade Wonderland Association, Inc. for the period July 1, 1994, through June 30, 1995, and authorizing the Mayor to sign on behalf of the City. Public Works Department Project Status Report - Third Quarter (A-050-300) It is the recommendation of the Director of Public Works the Public Works Department's Quarterly Report for third quarter 1994 be accepted. Resolution - Summarily Vacating Public Service Easement in River Bend Estates Subdivision (A-010-040 & S-100-647) It is the recommendation of the Director of Public Works that Resolution No. 94-192 be adopted, a resolution of the City Council of the City of Redding summarily vacating a 15' wide public service easement deeded to the City by deed recorded in Book 1957 at Page 381, Shasta County Records; and shown on the map of the River Bend Estates Subdivision recorded in Book 19 of maps at Page 58, Shasta County Records. Resolution - Summarily Vacating Storm Drain Easement in Shasta Terrace Subdivision (A-010-040 & S-100-699) It is the recommendation of the Director of Public Works that Resolution No. 94-193 be adopted, a resolution of the City Council of the City of Redding summarily vacating a 15' storm drain easement along the westerly boundary of Lot 17, Shasta Terrace Subdivision, recorded in Book 9 of maps at Page 27, Shasta County Recorder. Resolution - Summarily Vacating Emergency Access Easement in Country Heights Subdivision, Unit 12 (A-010-040 & S-100-108) It is the recommendation of the Director of Public Works that Resolution No. 94-194 be adopted, a resolution of the City Council of the City of Redding summarily vacating a 15' emergency access easement running parallel with and westerly of the east line of Lot 26 in Unit 12 of the Country Heights Subdivision, in exchange for a 15' emergency access easement lying 7.5' on each side of the southerly boundary of Lot 33 in said subdivision. Resolution - Initiating Abatement Proceedings on Property Located at 542 Branstetter Lane, owned by Phillip E. Allen (A-030-070) It is the recommendation of the City Attorney that Resolution No. 94-195 be adopted, a resolution of the City Council of the City of Redding of intention to begin legal proceedings of abatement under Chapter 9.36 of the Redding Municipal Code on certain real property in the City of Redding located at 542 Branstetter Lane, owned by Phillip E. Allen. MOTION: Made by Council Member McGeorge, 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 - P. Anderson, Kehoe, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution Nos. 94-181, 94-182, 94-183, 94-184, 94-185, 94-186, 94-187, 94- 188, 94-189, 94-190, 94-191, 94-192, 94-193, 94-194 and 94-195 are on file in the office of the City Clerk. - - - - - - COMPLETION OF COMBUSTION TURBINE PROJECT (E-120-150) Electric Utility Director Lindley provided an overview of the Report to City Council dated July 5, 1994, incorporated herein by reference, which provided the following information: 1) Cost comparison between staff's recommendation and the original agreement for completing the project; 2) Comments relating to unresolved legal issues; 3) Staff's recommendation for the completion of the project by the existing project contractor, Zurn/NEPCO, which has provided the City with a completion price of approximately $3,870,000. Mr. Lindley related that construction stopped on the project, which is approximately 95 percent complete, on April 22, 1994. He noted three issues which remain to be dealt with relative to the project's completion: 1) Completion of construction of the project; 2) Project startup and 3) Completion of obligations of MLP not directly related to project startup or project construction completion. Mr. Lindley explained that the difference between Zurn/NEPCO's cost to complete construction and the high end of the estimate to have the project engineer complete construction is $459,628. This represents approximately a ten percent difference. Because of the relative firmness of the Zurn/NEPCO cost, staff believes it would be in the City's interest to proceed with Zurn/NEPCO for the construction completion. However, the Zurn/NEPCO cost for start-up is nearly two and one half times the staff estimate of the cost. Staff has not been able to justify the large differential. Therefore, staff believes it would be in the City's interest to have the start-up work accomplished with the project engineer in charge of the work. For continuity of effort, staff believes that most of the remaining environmental and permitting work should be completed by the current contractor, Reese Chambers System Consultants, Inc. It is the recommendation of staff that the City Council direct staff to negotiate agreements with the following firms: 1) Zurn/NEPCO for the completion of construction of the gas turbine project; 2) Black & Veatch for the startup work associated with the gas turbine project; and 3) Reese- Chambers System Consultants Inc. for the completion of the remaining Small Power Plant Exemption (SPPE) requirements, except for special technical support for completing the Offset Agreement relating to air quality regulations, and paving the road at the County Landfill. All agreements will be brought back for the City Council's consideration. Mayor R. Anderson noted that the City Council spent considerable time in closed session discussing the legal ramifications associated with staff's recommendation. Council Member Kehoe related that the City Council has an obligation to its ratepayers and taxpayers to complete the project in a timely and cost- effective fashion. He opined that the cost estimates provided by Black & Veatch and the City of Redding outlined in Table 1 of the Report to City Council represent the most economical means of completing the project. He suggested that this alternative should be selected if the cost estimates can be validated. In response to Council Member P. Anderson, Mr. Lindley related that it is not realistic to try and validate the cost estimates. Without a detailed set of bid specifications and bid documents, accurate bid prices cannot be obtained. He said Zurn/NEPCO has under contract those particular companies which were associated with the project's major construction activities and can complete those activities expeditiously and at a reasonable cost to the City. Mayor R. Anderson stressed that the figures outlined in Table 1 of the Report to City Council are estimates, whereas Zurn/NEPCO's price is a firm bid. Legal counsel has stressed that the City has a strong obligation to mitigate any losses from the project by getting construction work started as quickly as possible. As Zurn/NEPCO was the primary constructor, it should be able to step in and finish the project quicker and more economically than another firm not currently associated with the project. He, therefore, supported staff's recommendation. Council Member Murray noted that staff is only being directed to negotiate contracts and there may be language that the City is not willing to accept. He supported staff's recommendation and related that it allows the project to be completed in a timely manner at a price which is slightly less than originally contracted for the entire project. Mayor R. Anderson cautioned that there are a number of outstanding unresolved claims among MLP, Zurn/NEPCO, and the City and others which do not affect the completion of the project. The amounts referenced do not include any costs or credits, legal or otherwise, relating to these claims. The claims all involve matters in the past and may result in either an increase or a decrease in the overall cost of the project, depending on their outcome. MLP has claimed an additional $16,948,000, now in arbitration for which the City is being represented by attorney Dugan Barr. Zurn/NEPCO also has a stop work order against MLP in the amount of $4,700,000. MOTION: Council Member Murray, seconded by Council Member McGeorge, directing staff to negotiate agreements between: 1) The City and Reese Chambers System Consultants, Inc.; 2) the City and Zurn/NEPCO for completion of construction; and 3) negotiate a startup agreement with Black & Veatch all for the City Council's consideration. Voting was as follows: Ayes: Council Members - P. Anderson, McGeorge, Murray and R. Anderson Noes: Council Members - Kehoe Absent: Council Members - None CHAMBER OF COMMERCE'S GOVERNMENT RELATIONS ADVISORY COMMITTEE (A-050-060) Dean Ward, Vice President of the Chamber of Commerce's Government Relations Advisory Committee, stated that the Government Relations Advisory Committee is within the Government Relations Division of the Chamber of Commerce. The mission of the division is to represent the Redding business community and members of the Chamber of Commerce in both legislative and public type matters which affect businesses in the community and their ability to economically survive. The Committee has been involved in the following: 1) dialogue with local, state and federal representatives on issues which affect the local area, both directly and indirectly; 2) weekly legislative conference calls involving approximately 40 other chambers across the State; 3) lobbied against Regulation 1802 and AB3505; 4) Traffic Task Force which reviewed the City's traffic impact fees; 5) NEXRAD Task Force; 6) coordinated the State of the City Luncheon; and 7) conducted Candidates Forum in conjunction with the Shasta Business Council. He offered the Chamber of Commerce, the Government Relations Division, and the Government Relations Advisory Committee to serve as City resources in researching or reviewing various issues which the City Council believes should have input from the business community. Mayor R. Anderson noted that the Chamber of Commerce is a good source to receive business community input. CONTINUED PUBLIC HEARING - Appeal of Conditions of Tentative Subdivision Map S-9-93, Lincoln Estates, Unit 3, by Joe Delija, et al (Lawrence Road) (S-100-437) The hour of 7:00 p.m. having arrived, Mayor R. Anderson opened the continued public hearing regarding the appeal of conditions of Tentative Subdivision Map S-9-93, Lincoln Estates, Unit 3. The following documents are on file in the office of the City Clerk: Affidavit of Posting - Notice of Continued Public Hearing Planning Department recommendation dated June 27, 1994 City Clerk Strohmayer advised that no protests were received. Director of Planning and Community Development Perry related that the applicant has submitted a letter requesting a two-week continuance to evaluate alternative access improvements with staff. It is the recommendation of staff that the public hearing be continued to July 19, 1994. Mayor R. Anderson determined that there was no one present wishing to address the City Council on this matter. Mayor R. Anderson continued the public hearing regarding the appeal of conditions of Tentative Subdivision Map S-9-93, Lincoln Estates, Unit 3, to July 19, 1994. PUBLIC HEARINGS - re Landscape Maintenance Districts A, B, & C - Assessment for Fiscal Year 1994-95 (A-170-075-050 & A-170-075-051 & A-170-075-052) The hour of 7:00 p.m. having arrived, Mayor R. Anderson opened the public hearings regarding the 1994-95 assessment for Landscape Maintenance Districts A, B and C. 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 Department recommendations dated June 27, 1994 City Clerk Strohmayer advised that no protests were received. Senior Planner King explained that the purpose of the public hearing is to accept testimony regarding the proposed consolidation, annexation, and levying of annual assessments of landscape maintenance districts. Following the public hearing, the City Council will be requested to take final action regarding the following: 1) Consolidate existing Landscape Maintenance Districts 1, 3, 5, 6, 7, 8, 9, 11, 12, 13, 14, 21, and 25 into one district to be known as Landscape Maintenance District "A;" 2) Annex additional territory (ten lots), namely Unit 2 of the Lancer Hills Subdivision (Area 16), into Landscape Maintenance District "A;" 3) Levy and collect assessments in Landscape Maintenance District "A" for fiscal year 1994-95; 4) Consolidate existing Landscape Maintenance Districts 2, 4, 10, 15, 18, 19, 20, and 23 into one district to be known as Landscape Maintenance District "B;" 5) Annex additional territory: Unit 4 and R1 (28 lots) of the Highland Oaks Subdivision (Area 7), into Landscape Maintenance District "B" and Units 11-16 (148 lots) of the Ravenwood Estates Subdivision (Area 10); and 6) Levy and collect assessments in Landscape Maintenance District "B" for fiscal year 1994-95; 7) Consolidate existing Landscape Maintenance Districts 16, 17, and 22 into one district to be known as Landscape Maintenance District "C;" 8) Annex additional territory: Gold Hills Subdivision, Unit 3a, R1, and R2 (Area 4); Monterey Springs Subdivision, Unit 2 (Area 5); and Potter Manor Subdivision (Area 6) into Landscape Maintenance District "C;" and 9) Levy and collect assessments in Landscape Maintenance District "C" for fiscal year 1994-95. Mr. King explained that the proposed assessments for fiscal year 1994-95 are as follows: 1) District A - $0.00, which includes the cash balance of last year. Without the cash balance, the assessment would be $23.20 per lot; 2) District B - $26.67 per lot, which includes the cash balance of last year. Without the cash balance, the assessment would be $61.28 per lot; and 3) District C - $7.72, which includes the cash balance of last year. Without the cash balance, the assessment would be $12.90 per lot. Mayor R. Anderson determined that there was no one present wishing to address the City Council on this matter and closed the public hearing. MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, that Resolution No. 94-196 be adopted, a resolution of the City Council of the City of Redding, pursuant to the Landscaping and Lighting Act of 1972, ordering: 1) The consolidation of existing Landscape Maintenance Districts 1, 3, 5, 6, 7, 8, 9, 11, 12, 13, 14, 21, and 25 into a new district entitled Landscape Maintenance District "A;" 2) The annexation of additional territory, namely Unit 2 of the Lancer Hills Subdivision (Area 16), into Landscape Maintenance District "A;" and 3) The levy and collection of assessments in Landscape Maintenance District "A" in the amount of $0.00 for fiscal year 1994-95. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray, and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution No. 94-196 is on file in the office of the City Clerk. MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, that Resolution No. 94-197 be adopted, a resolution of the City Council of the City of Redding, pursuant to the Landscaping and Lighting Act of 1972, ordering: 1) The consolidation of existing Landscape Maintenance Districts 2, 4, 10, 15, 18, 19, 20, and 23 into a new district to be known as Landscape Maintenance District "B;" 2) The annexation of additional territory, namely Highland Oaks Subdivision, Unit 4 and R1 (Area 7), and Ravenwood Estates Subdivision, Units 11-16 (Area 10), into Landscape Maintenance District "B;" and 3) The levy and collection of assessments in Landscape Maintenance District "B" in the amount of $26.67 for fiscal year 1994-95. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray, and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution No. 94-197 is on file in the office of the City Clerk. MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, that Resolution No. 94-198 be adopted, a resolution of the City Council of the City of Redding, pursuant to the Landscaping and Lighting Act of 1972, ordering: 1) The consolidation of existing Landscape Maintenance Districts 16, 17, and 22 into a new district to be known as Landscape Maintenance District "C;" 2) The annexation of additional territory, namely Gold Hills Subdivision, Unit 3A, and R2 (Area 4); Monterey Springs Subdivision, Unit 2 (Area 5); and Potter Manor Subdivision (Area 6), into Landscape Maintenance District "C;" and 3) The levy and collection of assessments in Landscape Maintenance District "C" in the amount of $7.72 for fiscal year 1994-95. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray, and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution No. 94-198 is on file in the office of the City Clerk. PUBLIC HEARING - re Appeal of Approval of Use Permit UP-17-94 and Denial of Variance Application V-4-94, by Donald Nelson (7051 Riverside Drive) (L-010-390 & L-010-410) Associate Planner Hanson explained that Dr. Donald Nelson recently purchased a single-family lot at the south end of Riverside Drive with frontage on the Sacramento River. Historically, the lot has been subject to flooding since its creation in approximately 1960. The 1974 flood photos show almost all of the parcel inundated. Since then, there has been incremental fill. A 1987 ortho photo indicated that the western one-third of the parcel is now above the floodplain elevation. A more recent site review indicates additional fill, resulting in approximately one-half of the parcel being elevated out of the floodplain. Mr. Hanson stated that in conjunction with a request to abandon a portion of Riverside Drive, the applicant submitted a request to encroach into the 100- year floodplain of the Sacramento River with fill (Variance Application V-4- 94) and to decrease the required building setback from the proposed edge of the fill (Use Permit UP-17-94). The Planning Commission recommended approval of a modified area of abandonment. It also denied the applicant's variance request to place additional fill in the floodplain. The Commission did approve, in modified form, the applicant's request to reduce the required setbacks from the floodplain based on the existing edge of fill on the property. Mr. Hanson related that a letter was subsequently received from the applicant, appealing the Commissions' decisions concerning UP-17-94 and V-4-94. Mr. Hanson reviewed the following issues associated with the requests for fill in the floodplain and encroachment into the required setbacks from the floodplain as outlined in the Report to City Council dated July 1, 1994, incorporated herein by reference: 1) Consistency with General Plan Goals and Policies; 2) Exceptions to the Setback Requirements; 3) Request to Fill in the Floodplain; 4) Pedestrian Access to the River. Mr. Hanson stated that it is staff's opinion that the Commission's decision to approve the Use Permit and deny the variance allows reasonable development of the parcel similar to that enjoyed by neighbors upstream. The applicant's proposed fill and setbacks would allow a substantially larger home closer to the river than most of the upstream neighbors. The requirement for a pedestrian easement is strongly supported in the Redding General Plan Land Use Element, Conservation and Open Space Element, and Recreation Element. It is also mandated by the Floodplain Ordinance, Chapter 18.47.100B. Therefore, it is the recommendation of staff that the applicant's appeal be denied. Mr. Hanson indicated that the real problem is that Dr. Nelson bought a lot subject to flooding, has a special septic tank and is attempting to reduce the area on the lot subject to flooding to get closer to the river. The Planning Commission said it could agree to a point, recognized the fill that has occurred as it exists, and reduced setbacks accordingly. The Commission also, in a separate recommendation, recommended approval of the abandonment of part of a street to allow more useable lot area to reduce the need to encroach on the river. Dr. Donald Nelson stated that the Use Permit and Variance Application were a result of the Abandonment Application. He maintained that Mr. Hanson did not tell him of the three options available under Section 18.47.100 of the Combined Floodplain District Plan. He said the Combined Floodplain District Plan also provides provisions for allowing the construction of the first floor of a residence below the floodplain if other buildings have been permitted to do so but must be warned about the cost of flood insurance. Dr. Nelson contended that contrary to what was indicated in the staff report, the fill on the lot is not illegal. He had a letter from a neighbor stating that he has owned his particular piece of property since 1978 and there has been no fill placed there, however, he spread approximately five cubic yards of dirt from his septic field on the surface of Dr. Nelson's lot. Dr. Nelson explained that the previous property owners put in a septic system which was approved by Shasta County and had a set of working drawings depicting a house located on the river side of the septic system without the provision of a 100 percent replacement area requirement when the lot was sold in 1960. Mr. Hanson stated that the statements made by staff in the Report to City Council were based on the exhibit presented in Dr. Nelson's request for the setback reduction and additional fill. He apologized for any inequity in the site plan and the numbers reflected. He acknowledged that none of the homes in this housing track had to go through this particular type of review for the development or filling of their lots, as most of the fill was placed in 1950 prior to Shasta County having much in the way of regulations. The comment regarding fill which has occurred since the annexation in 1976 was based on site visits by himself, the State Department of Recreation and Wildlife Conservation Board in 1979 and aerial photos prepared by CH2M Hill. In response to Council Member McGeorge, Director of Planning and Community Development Perry related that the other lots in the area were not required to obtain a Use Permit as the residences are located 30 feet back from the 100- year floodplain. Mr. Hanson added that the other lots are much larger and provide more room for development. In response to Council Member P. Anderson, Mr. Hanson related that the concerns with the placement of fill in the area include General Plan consistency and the City's long-standing policy to prohibit or not encourage additional fill into the river. Mr. Hanson further stated that the Sacramento River has a prominent place in the community and allowing encroachment in the floodplain has negative impacts on the General Plan and zoning requirements, as well as cumulative impacts on flooding both upstream and downstream. Mr. Perry pointed out that there is ample area where a house could be located, but Mr. Nelson has chosen to move out into the floodplain. He also noted that the City was not a party to issuing the septic tank permit. In response to Mayor R. Anderson, Mr. Hanson stated that the leach fields were installed in 1983. There is no consultation between the County Environmental Health Department when a septic tank permit is issued. Council Member Murray questioned if there were other access points to the river. Mr. Hanson related that Cascade Park is the closest access point he is aware of. He noted that the area is clear of vegetation and during the fall and winter months the water is shallow enough to walk across to the islands. In response to Council Member Murray, Mr. Hanson related that Dr. Nelson has indicated that the Shasta County Environmental Health Department is willing to restructure or relocate the dimensions of the leach bed in order to allow more utilization of the lot, but would be subject to Dr. Nelson obtaining the necessary permit. Council Member Murray expressed a desire to visit the site. In response to Council Member McGeorge, Mr. Hanson stated that staff believed the Planning Commission's approval of the Use Permit, which provided for a reduction in the setbacks, allowed utilization of the lot whether or not Dr. Nelson was able to modify the leach system. Mayor R. Anderson continued the public hearing to July 19, 1994, to allow City Council Members an opportunity to visit the lot in question. PUBLIC HEARING - re Abandonment Application A-5-93, by Donald Nelson (7051 Riverside Drive) (A-010-100) The hour of 7:00 p.m. having arrived, Mayor R. Anderson opened the public hearing regarding Abandonment Application A-5-93. 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 June 27, 1994 City Clerk Strohmayer advised that no protests were received. Planning and Community Development Director Perry recommended that the public hearing regarding Abandonment Application A-5-93 also be continued to July 19, 1994, as it is related to Use Permit Application UP-17-94 and Variance Application V-4-94. Dr. Nelson related that he did not want to proceed with the abandonment if he were not able to have the entire area. He did not believe there was justification for retaining the easement. Mayor R. Anderson continued the public hearing regarding Abandonment Application A-5-94, by Donald Nelson, to July 19, 1994. PUBLIC HEARING - re Schedule of Fees and Service Charges (F-205-600) Council Member P. Anderson abstained from discussion and voting on this matter. The hour of 7:00 p.m. having arrived, Mayor R. Anderson opened the public hearing regarding the Amendment of the Schedule of Fees and Service Charges. The following documents are on file in the office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Staff recommendation dated June 27, 1994 City Clerk Strohmayer advised that two letters had been received from the Shasta County Board of Realtors. Director of Finance Downing stated that in accordance with City policy, staff has developed for the City Council's consideration annual adjustments to the Schedule of Fees and Service Charges. Ms. Downing noted the following changes which were made from staff's original presentation: a) medical dispatch fees have been changed to a flat fee; and b) No increase is being recommended with regard to the Airports Department's fees, as the Airports Commission will be making recommendations in November based on the new Airports Master Plan. She related that this is the first year that the fees for the Community Services Department has been included in the Schedule of Fees and Service Charges. She noted that she previously misinformed the City Council by indicating that none of the proposed changes were included in the 1994-95 budget. The increased fees for the Convention Center, however, are included in the 1994-95 budget. She stated that staff is in the process of developing a list of development fees for the City of Redding, as well as a list of comparables from other cities. Mike Cronic, Chairman of the Legislative Committee of the Shasta County Board of Realtors, requested that the City Council appoint a committee from the private sector to make recommendations to the City Council and that fee structures, such as this, be looked at globally and some type of economic impact report be prepared prior to the implementation of any new regulations and fee structures. He requested that the City Council defer action on this matter until such a committee could review the proposed fees. He noted that a committee comprised of the Shasta County Board of Realtors, Shasta Builders Exchange, Chamber of Commerce, and the Shasta Business Council, reviewed the traffic impact fees. Mayor R. Anderson determined that there were no additional individuals present wishing to speak on the matter and closed the public hearing. Council Member Murray favored proceeding with the approval of the Convention Center fees since they were part of the budget discussion and recommendation. While not opposed to providing more time for the various organizations to review the proposed fees, he did not want to be in a position of needing approval from the private sector before taking action on issues such as this. He noted that there should be a definite time limit placed on the private sector review, with the understanding that the City Council would move forward at that time and make a decision. Council Member McGeorge concurred with a time limitation on the review process. He believed it is important, however, to have input from the building and business regarding the proposed fees. Council Member Kehoe concurred that public input is beneficial. He stressed that the City Council is prepared to make a decision regarding this matter in the absence of hearing additional information. He suggested that the organizations be provided an additional two weeks to one month to review this matter further. He preferred having the committee also review the Convention Center fee increases as well. Mayor R. Anderson reopened the public hearing. MOTION: Made by Council Member Murray, seconded by Council Member Kehoe, to continue the public hearing regarding the amendment of the Schedule of Fees and Service Charges to August 2, 1994. The Vote: Unanimous Ayes ORDINANCE NO. 2089 - Amendment to Chapter 18.47 of the Redding Municipal Code, Floodplain Ordinance (L-010-500-050) MOTION: Made by Council Member McGeorge, seconded by Council Member Kehoe, that the full reading of Ordinance No. 2089 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, that Ordinance No. 2089 be adopted, an ordinance of the City Council of the City of Redding amending Redding Municipal Code Title 18, Zoning, by amending portions of Chapter 18.47 entitled "FP" Floodplain Combining District. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Ordinance No. 2089 is on file in the office of the City Clerk. ORDINANCE NO. 2090 - Amendment to Chapter 18.62, Off-Street Parking and Loading Regulations (P-030-200 & L-010-500-050) MOTION: Made by Council Member McGeorge, seconded by Council Member Kehoe, that the full reading of Ordinance No. 2090 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes MOTION: Made by Council Member McGeorge, seconded by Council Member Kehoe, that Ordinance No. 2090 be adopted, an ordinance of the City Council of the City of Redding amending Redding Municipal Code Chapter 18.62, Off-Street Parking and Loading Regulations, by repealing Section 18.62.300 and adding a new Section 18.62.300 entitled Special Requirements. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Ordinance No. 2090 is on file in the office of the City Clerk. COMPOSITION OF AIR POLLUTION CONTROL DISTRICT BOARD (B-080-460) Mayor R. Anderson related that AB75 provides for city representation on Air Pollution Control Boards. He stated that a Memorandum of Understanding was received from the Shasta County Board of Supervisors indicating a seven-member board, with four members from the Board of Supervisors and three members from the three cities. He provided the City Council with a copy of his letter dated June 23, 1994, incorporated herein by reference, which indicates that the City of Redding is not in agreement with the proposed board composition. He believed that the law clearly states that the board composition and the number of members is to be determined jointly by the counties and cities within the district and shall be approved by majority of the counties and cities which contain a majority of the population. The law further indicates that if the district fails to comply with this agreement, the district shall be set up where the incorporated area represents more than 50 percent of the total county population, one-half of the members of the governing board shall be Mayors or City Council Members and one-half County Supervisors. He indicated that the Board of Supervisors, at its last meeting, took action to have a five member board composed of three supervisors and two members from the three cities. In response to Mayor R. Anderson, City Attorney Hays stated that while the legislation is less than a model of clarity, if the three cities are uniform and there is a strong political will, he believed the legislation provided a blueprint as to how the board should be constituted. He explained that it would be incumbent upon the three cities to seek declaratory action in Superior Court to verify that particular provision in the legislation if the County were not willing to agree to a 50/50 nature of the board. In response to Council Member P. Anderson, Mr. Hays indicated that the County does not have the authority to determine the composition of the board. In his opinion, the County was relying on the action which it believed was taken by the cities through its Mayor Selection Committee. Council Member Murray understood that the Board of Supervisors was acting under the premise that a board had to be in place by July 1, 1994 and that it could work to be a seven-member board and the County would appoint four members so that there would be a functioning board in the absence of an agreement between the cities and the county. He believed that the County is amenable to a 50/50 representation. He stated that he would like to see communication between the County and the cities before any course of action is taken. Mayor R. Anderson indicated that he has had considerable conversations with the County, who is relying on staff and legal counsel, and the matter is probably a difference of opinion. He suggested that the City Attorney speak with County Counsel to determine if a mutual interpretation of this particular piece of legislation was possible. Mr. Hays responded that he had spoken with Jim Underwood, and he felt the solution was based on political will and not on the attorneys. Mayor R. Anderson stated that Francie Sullivan indicated that she had been instructed not to get involved with the matter and that staff had been directed to negotiate with the cities. He viewed the matter as being a legal question. Mr. Hays reimphasized that Jim Underwood, Len Wingate, Mike Fitzpatrick and he are in agreement that the solution to the situation is based upon the political will of the people and parties involved. Council Member Murray stated that he would be willing to accept a six-member board composed of three representatives from the County, and three representatives from the cities. Council Member Kehoe believed that the law required the cities to have at least 50 percent representation on the board. Council Member McGeorge concurred with seeking 50 percent representation on the board and that solution should be sought through discussion before legal action is considered. Mayor R. Anderson conveyed that he has met with the other two Mayors who will be discussing this matter with their City Councils. While three representatives from the cities and two representatives from the County is preferred, he believed everyone would be willing to accept 50/50 representation. He related that the major problem is scheduling a meeting with the Board of Supervisors. Mayor R. Anderson stated that he would send another letter to the County reiterating that the Mayors of the three cities would like to have a meeting with the Board of Supervisors to discuss the composition of the Air Pollution Control District Board. CITY COUNCIL WORKSHOPS (A-050-060) Interim City Manager McMurry noted that the City Council scheduled a workshop for July 16, 1994, which will focus on the General Plan, annexation issues and Mello-Roos Districts. At that time, a desire was expressed to have a second workshop on the five-year capital improvement plan, and possibly a third workshop to discuss the financing of the capital improvements. He requested direction from the City Council as to the dates for future workshops. Staff believes that the five-year capital improvement plan and its financing can be completed at one workshop. It was the consensus of the City Council to hold a workshop at 6:30 p.m., August 9, 1994, in City Hall Conference Room A, to discuss the 5-year capital plan and its financing. At the hour of 8:34 p.m., Mayor R. Anderson declared the meeting recessed. At the hour of 8:43 p.m., Mayor R. Anderson reconvened the meeting to regular session. RESOLUTION - Adoption of 1994-95 Annual Budget (B-130-070) Budget Services Officer Starman provided an overview of the Report to City Council dated June 23, 1994, incorporated herein by reference, concerning the adoption of the 1994-95 annual budget. He reviewed the following viewgraphs: 1) Summary of changes to the 1994-95 proposed budget; 2) Summary of issues not reflected in the final budget; 3) Summary of new positions; and 4) Amendments to the 1994-95 proposed budget. He noted that the Senate adopted a State budget which holds cities harmless in terms of additional dollars being diverted from local government. It is the recommendation of staff that the City Council approve the necessary resolution adopting the 1994-95 Annual Budget. In response to Council Member Murray, Mr.Starman stated that $110,000 of Internal Fund Reserve is the amount that would be attributable to the General Fund if the City Council were to liquidate all reserves. Council Member Murray explained that the City Council is in essence approving a budget which includes $1,745,000 in General Fund reserves of one form or another. Interim City Manager McMurry thanked staff for their work on the 1994-95 budget. He requested that the City Council let staff know of any recommendations it might have with regard to the budget. Staff is working on the City Council's request to have more emphasis placed on the goals and objectives portion of the budget and on quantifible and better performance measures. Council Member Murray requested that staff provide the City Council with an example of a program type budget for its review. MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, that Resolution No. 94-199 be adopted, a resolution of the City Council of the City of Redding adopting and approving the 1994-95 annual budget. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution No. 94-199 is on file in the office of the City Clerk. MONTHLY FINANCIAL STATEMENT (B-130-070) Budget Services Officer Starman provided an overview of the Report to City Council dated June 30, 1994, incorporated herein by reference, outlining the May 1994 Monthly Financial Report. MOTION: Made by Council Member P. Anderson, seconded by Council Member Kehoe, to accept the Monthly Financial Report for May 1994. The Vote: Unanimous Ayes SCHOOL FACILITIES TASK FORCE - Executive Summary and Appointment of Liaison (E-060-690) Director of Planning and Community Development Perry provided an overview of Report to City Council dated June 21, 1994, incorporated herein by reference, which contained the executive summary of a report prepared by the School Facilities Task Force for the purpose of providing a background document that looks at projected student enrollments and school facility costs from a near countywide basis. The only school district not covered by the report is the Gateway Unified School District which has completed its own study. Mr. Perry requested that the City Council designate a replacement representative for former Council Member Arness on the Task Force. MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, to appoint Council Member P. Anderson as the City's representative to the School Facilities Task Force. The Vote: Unanimous Ayes AWARD OF BID - Bid Schedule No. 2840, Maintenance Contracts for Landscape Maintenance Districts A, B, and C (A-170-075-050 & A-170-075-051 & A-170-075-052) Senior Planner King related that the low bid to perform the field maintenance for the landscape maintenance districts was received from Yard Manicurist. Staff field inspected each district with the owner of Yard Manicurist to ensure there was a clear understanding of the routine maintenance that needs to be done over the life of the 11-month contracts. Staff is satisfied that the firm meets all of the bid specifications, including: 1) qualifications; 2) understanding of the scope of work; 3) contractor's license; 4) business license; 5) pesticide license; 6) minimum wage rate requirement for employees; and 7) requirement to post a 100 percent performance bond on the dollar amount bid prior to the execution of the contract. It is the recommendation of staff that the City Council award Bid Schedule No. 2840, maintenance contracts for Landscape Maintenance Districts to the Yard Manicurist as follows: District A - $10,365.74; District B - $10,028.81; and District C - $460.00. Council Member Murray questioned who would be inspecting the locations to ensure that the work is being done in accordance with bid specifications. Mr. King explained that the bid specifications require that the Recreation and Parks Department perform routine field inspections to ensure requirements are being met. He stated that initially staff was concerned about the low bid in comparison to the other bids received, but after a field review of each district with the owner of the Yard Manicurist to ensure he understood the hours of work required and bid specification requirements, staff has no basis to believe that the Yard Manicurist could not perform the work as required. Council Member Murray stated that he had no basis for believing that the Yard Manicurist could not perform the work, but the City had a responsibility to ensure that the job gets completed for the price. He asked whether the bond would cover lost plants. Mr. King stated that each district has a reserve to cover any unusual circumstances. Council Member Murray questioned whether special inspections could be instituted during the hot months of the year. Mr. King stated that the City has a rigorous inspection program during the summer months. Recreation and Parks Director Riley stated that the citizens and other landscaping contractors keep the City informed when maintenance is not being performed. MOTION: Made by Council Member King, seconded by Council Member McGeorge, to award Bid Schedule No. 2840, maintenance contracts for Landscape Maintenance Districts A, B, and C, to Yard Manicurist as follows: District A - $10,365.74; District B - $10,028.81; and District C - $460.00. The Vote: Unanimous Ayes STATUS OF CITY-OWNED SURPLUS PROPERTY (C-070) Director of Planning and Community Development Perry recalled that the City Council requested an update on the identification and disposition of City- owned surplus property. He provided an overview of the Report to City Council dated June 21, 1994, incorporated herein by reference, which noted that there are currently 15 parcels designated as surplus, with an estimated combined value of $3,448,480. This does not include lease areas such as the airports, nonprofit office park, or land owned by either the Redding Redevelopment Agency or the Housing Authority. Council Member Murray expressed concern with the City's current procedure of managing City property, whereby, each department is essentially in charge of its own real estate dealings. He opined that the City would recognize substantial cost savings if the real property management was handled in a different fashion. He suggested that the City explore the concept of centralizing real property asset management, including leasing activities, under one department within the City. Council Member Kehoe stated that Council Member Murray's observations would also apply to fleet management, whereby individual departments make decisions relative to their vehicle needs. Mayor R. Anderson concurred and suggested that staff review the possibility of centralized management of real property and fleet management. Interim City Manager McMurry related that staff would comply with the City Council's request. He noted, however, that the Planning and Community Development Department has performed admirably in the management of City property. He indicated that most of the fleet management activity is centralized, however, there is some activity which is being tried out on a non-centralized basis and staff will report back to the City Council on its success or lack thereof. In response to Council Member P. Anderson, Mr. McMurry stated that acquisitions go through the Fleet Management Department and staff will report back to the City Council as to how that works if there is a perception that Fleet Management does not have a control over vehicle acquisition. Fleet Management makes recommendations which go through the budget process as to when vehicles should be replaced and how they should be acquired. Council Member Murray requested that the staff report also contains different concepts than are currently being utilized. Mr. McMurry related that staff would bring back a report containing data and recommendations for the City Council's consideration. MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson. to accept the Report regarding the status of City-owned surplus property. The Vote: Unanimous Ayes RESOLUTION - City Council Policy on Floodplain Development and Storm Water Detention (A-050-060-555 & L-010-500-050) Associate Planner Manuel recalled that the City Council, at its meeting of June 21, 1994, examined the proposed City Council policy on floodplain development and storm water detention. Upon completion of its deliberations, staff was directed to modify the proposed policy in the following areas: 1) Provide a reference indicating that flood elevations would be based on 1994 flood elevations of the Storm Drain Master Plan (SDMP) rather than estimates of full urbanization flood estimates of that study; 2) Request that the County of Shasta and the City of Shasta Lake refer to the City of Redding for review and comment any project proposals which are located in drainage basins shared in common with Redding (Policy 6); and 3) Provide for limited additional studies to determine the flexibility of regional detention facilities (Policy 7). Mr. Manuel noted that for cost purposes, the policy still references the SDMP's 1992 base flood elevations. To obtain 1994 elevations would cost approximately $5,000. It is the opinion of the Public Works Department that the minimal amount of development that has occurred since 1992 does not warrant the cost involved in updating and re-running the model. Also, since the policy references the SDMP, it should be less confusing if the base dates of the policy and study are the same. With regard to letters received by the City Council, Mr. Manuel believed that the adoption of the policy would go a long way toward relieving some of the fears of residents in the area. It is the recommendation of staff that the City Council adopt the resolution establishing the City Council policy on floodplain development and storm water detention. In response to Council Member Murray, Planning and Community Development Director Perry related that the rezoning of property would require property owners to receive a notice concerning the environmental determination, the Planning Commission's public hearing, and the City Council's public hearing. MOTION: Made by Council Member P. Anderson, seconded by Council Member Murray, that Resolution No. 94-200 be adopted, a resolution of the City Council of the City of Redding adopting a policy regarding Floodplain Development and Storm Water Detention. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution No. 94-200 is on file in the office of the City Clerk. CITY-OWNED LAND LOCATED AT 16900 KESWICK DAM ROAD (C-070) Planning and Community Development Director Perry related that in January 1994, the City acquired a 23.48 acre parcel of land located at 16900 Keswick Dam Road in lieu of foreclosure on Lake Keswick sewer assessment lien. The property is located outside the corporate City boundary. Mr. Perry explained that in addition to the sewer assessment lien, the City also assumed delinquent property taxes, delinquent Quartz Hill water assessment, and penalties. As of June 30, 1994, the cost to clear all liens is $248,769.63, which includes $71,540.59 Lake Keswick sewer assessment penalties that the City Council could choose to waive. The Recreation and Parks Commission, at its May 18, 1994, meeting, recommended that the City retain the entire property for park purposes, but pursue purchasing the property using a funding source other than Park Development funds. Mr. Perry stated that from staff's perspective, the City should proceed with annexation and the formation of a Mello-Roos District to try to enhance the value of the property and reduce tax obligations. The Report to City Council dated July 5, 1994, incorporated herein by reference, contained alternatives for the City Council's consideration. It is the recommendation of staff that the City Council defer action on the use of the property for a park site. In response to Mayor R. Anderson, Mr. Perry did not believe that the property had a net value. Council Member Murray opined that the property had a negative value. The appraisal indicated that the worth of the developable portions of the property is $95,000, with $248,000 owing. Mr. Perry acknowledged that if the property were sold today, it would be sold at a loss. Staff's goal is to drive up the value of the property and also avoid paying property taxes. In addition, staff would attempt to get some of the back taxes reduced. In response to Council Member Murray, Finance Director Downing stated that whenever an assessment district becomes delinquent, the utility which profited from the assessment is required to make up the difference. MOTION: Made by Council Member Murray, seconded by Council Member P. Anderson, to defer action on City-owned land located at 16900 Keswick Dam Road until after the City Council Workshop concerning annexations. The Vote: Unanimous Ayes RESOLUTION - Agreement with Superior California Development Council for Revolving Loan Fund Program (G-100-030-037) Planning and Community Development Director Perry stated that the City Council in 1988 created an Economic Development Revolving Loan Fund (RLF) using funds from the Community Development Block Grant (CDBG) Program to be administered by the Shasta County Economic Development Corporation (EDC). The RLF provides public funds in conjunction with private investments for the development and expansion of manufacturing and assembly businesses located within the City of Redding. The primary purpose of the program was to create or retain jobs for lower-income persons. A total of eight jobs have been created as a result of this program. All of these positions were secured by lower-income persons. Mr. Perry explained that in April 1994, the City was notified by EDC that restructuring of the organization was taking place and that administration of the RLF program was to be terminated effective June 30, 1994. Subsequent to receiving EDC's notice of intent to terminate services, the City received a letter from Superior California Development Council (SCDC) expressing a desire to assume EDC's administration of the RLF. SCDC recently assumed administration of the City of Anderson's $600,000 CDBG RLF, also previously administered by EDC, and is anticipating the award of a contract in the near future to establish a Small Business Development Center (SBDC). The SBDC will provide one-on-one business counseling, workshops, special projects, as well as provide local access to the Centers for International Trade Development. SCDC provides economic development services to the area covered by Shasta, Siskiyou, Trinity and Modoc counties. It is the recommendation of staff that the City Council adopt the resolution approving the agreement with the Superior California Development Council. It is further recommended that the City Council direct staff to evaluate the program after six months and return to the City Council for further direction, if necessary. This will effectively maintain program continuity while affording the City sufficient time to evaluate the RLF and other possible economic development opportunities for the Redding community. Council Member Kehoe questioned staff's rationale for continuing the program given the fact that it has only made three loans since 1988. Mr. Perry replied that staff would like to determine if the program is at fault, if there is a lack of interest in this type of loan, or if the problem lied with the marketing of the loan. In addition, if the economic climate had been better, there might have been more activity. Interim City Manager McMurry concurred with staff's recommendation for continuing the program for an additional six months. He noted that the small business development center, which SCDC is in the process of obtaining funding for, is geared toward small business. MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, directing staff to evaluate the Revolving Loan Fund Program after six months and return to the City Council for further direction, if necessary and adopt Resolution No. 94-201, a resolution of the City Council of the City of Redding executing an agreement between the City of Redding and the Superior California Development Council for the Economic Development Revolving Loan Fund, for the period of July 15, 1994, through July 14, 1995, and authorizing the Mayor to sign same. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution No. 94-201 is on file in the office of the City Clerk. AWARD OF BID - Bid Schedule No. 2871, Single Phase Pad Type Distribution Transformers (B-050-100) Electric Utility Director Lindley related that the low evaluated bid for Bid Schedule No. 2871, single phase pad type distribution transformers, was submitted by WESCO Distribution Inc. in the evaluated amount of $458,788.48 (delivered cost $276,180.00) and is in compliance with the requirements of the specifications and general conditions. Funds for these purchases are included in the 1994-95 budget. It is the recommendation of staff that the City Council award the bid to WESCO Distribution Inc. for furnishing single phase pad type distribution transformers at the bid unit prices during the specified contract period of August 1, 1994, through July 31, 1995. Council Member Kehoe questioned how the City could do a better job of advertising bids, thereby eliminating technical problems, i.e., bid bonds which are not notarized. City Attorney Hays replied that strong efforts are made to point out bid bond requirements. One problem is that companies do not provide the bond requirements to their bonding companies. If a bidder wants assistance from the City to ensure bid bonding requirements are met, staff would be willing to do so. Mr. Lindley pointed out that all bidders receive the same information and are given the same opportunity to respond to the bid. MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, that Bid Schedule No. 2871, single phase pad type distribution transformers, be awarded to the low evaluated bidder, WESCO Distribution Inc., in the evaluated amount of $458,788.48 (delivered cost $276,180.00) for the period of August 1, 1994, through July 31, 1995. The Vote: Unanimous Ayes FERC PRELIMINARY PERMIT FOR SPRING CREEK HYDROELECTRIC PROJECT (E-120-050 & E-120-070-655) Electric Utility Director Lindley provided an overview of the Report to City Council dated June 29, 1994, incorporated herein by reference, which provided a summary of Spring Creek Hydroelectric Project's development history for the past eight years. In accordance with the Federal Energy Regulatory Commission's (FERC) licensing procedures, further study of the project alternative should be performed under the auspices of a new preliminary permit. The City's existing preliminary permit expires August 1, 1994. If the City desires to continue to consider the hydroelectric potential at the site, the City should file a new preliminary permit application when the existing permit expires. If another party files such an application before the City files, the City may be precluded from developing the site. The immediate cost of filing a preliminary permit will be approximately $10,000. However, if FERC grants a preliminary permit, the next step would be for the City to develop and distribute an initial consultation package to the appropriate resource agencies for comment. This process would cost $25,000 to $50,000; and at that time, the City should have a fairly solid understanding of whether there will be any agency opposition to the project. Mr. Lindley recognized that development of hydroelectric resources can be expensive and risky. Nonetheless, such resources represent a clean, renewable, and potentially economical source of energy for the City's electric customers for the next 50+ years. If a preliminary permit is granted by FERC, the City would be in a position to further assess these potential benefits while simultaneously ensuring other parties do not gain the right to develop the project site before the City's assessment is complete. However, such a permit would not create an obligation for the City to develop the project. It is the recommendation of the Electric Utility Commission and staff that the City Council adopt a resolution approving the filing of a new preliminary permit application for the Spring Creek Hydroelectric project with FERC. In response to Council Member P. Anderson, Mr. Lindley stated that the Redding Power Plant will provide approximately 30 megawatts of steam turbine generation which is fired by natural gas. Operating and maintenance costs are the only costs for a hydroelectric project once it is finished. In response to Council Member Murray, Mr. Lindley related that a hydroelectric project is a step-by-step commitment of funds and ultimately the City could find itself up against a change in policy at the Federal government level having spent $250,000 or more at that point in time. It is an expensive process with considerable risk attached, however, there is tremendous benefit if it can be made to work. Council Member McGeorge questioned how much the City had invested in other projects which it was required to walk away from. Mr. Lindley related that approximately $1,000,000 was spent on the Lake Redding project; $500,000 on Lake Red Bluff, and $1,000,000 on Spring Creek. It is becoming more difficult to obtain permits for these projects because of environmental concerns. Council Member Murray believed that another group, such as Iron Mountain Mine, will file on this site if the City does not. There are some sound environmental reasons for having a hydroelectric project here to bypass water flowing into the Iron Mountain area. Motion made by Council Member Murray to authorize the filing of a new preliminary permit application with FERC for the Spring Creek Hydroelectric Project by August 1, 1994, died due to lack of a second. AWARD OF BID - Bid Schedule No. 2866, Alarm Services RESOLUTION - Appropriating Funds * (B-130-070 & B-050-100) Director of General Services Masingale related that the apparent low bid for alarm services was received from Northern California Security Systems in the amount of $34,580 for a three-year contract. Since submittal of the bids, Redding Museum of Art and History and Carter House Science Museum have decided to no longer be serviced by the City's alarm services contract, and the Electric Department has decided on maintenance only. Therefore, the $34,580 contract amount will be decreased to an estimated $24,645 based on the current alarm locations. Mr. Masingale explained that the existing alarm services contract with California Safety Company contains a 60-day cancellation clause. Therefore, the proposed contract with Northern California Security Systems for alarm monitoring and maintenance will not be effective until August 1, 1994. During the budget process, staff settled on $7,800 as an estimated budget figure for 1994-95. The low bid is equal to $8,215 annually. In addition, staff did not anticipate having to pay California Safety Company for the month of July and did not include the $3,585 in the 1994-95 budget. It is therefore necessary to appropriate an additional $4,000 for alarm monitoring and maintenance for 1994-95. Staff estimates that the City will realize $30,000 savings annually starting with the second year of the contract. It is the recommendation of staff that the City Council award the bid to Northern California Security Systems for alarm monitoring and maintenance for a three-year period in the amount $24,645 and adopt a resolution appropriating an additional $4,000 for fiscal year 1994-95. MOTION: Made by Council Member McGeorge, seconded by Council Member Kehoe, awarding Bid Schedule No. 2866, alarm services, to Northern California Security Systems for a three-year period commencing August 1, 1994, in the amount of $24,645 and adopting Resolution No. 94-202, a resolution of the City Council of the City of Redding approving and adopting the 1st amendment to City Budget Resolution No. 94-199 appropriating $4,000 for alarm monitoring and maintenance. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution No. 94-202 is on file in the office of the City Clerk. RESOLUTION - Agreement with DKS Associates to Upgrade Traffic Model RESOLUTION - Appropriating Funds * (B-130-070 & T-100-375) Director of Public Works Galusha recalled that the City Council, at its meeting of April 19, 1994, authorized staff to enter into negotiations with the firm of DKS Associates to revise the computerized traffic model now in use by the City of Redding. Funding for this project is through the Shasta County Regional Transportation Planning Agency (RTPA) in conjunction with Caltrans, Air Quality Management District (AQMD), and the Redding Area Bus Authority (RABA). The City Council has entered into an agreement with RTPA to accomplish the revision and provide City staffing. The City has negotiated an agreement with DKS Associates which incorporates the requirements of the Request for Proposal and the specific items discussed during negotiations. Staff is in agreement with the project as outlined, and funding has been secured for the consultant and staff time required for the project. It is the recommendation of staff that the City Council adopt the necessary resolutions approving the agreement with DKS Associates, authorizing an additional $15,000 to cover any minor revisions in the scope of work, appropriating funds, and authorizing the receipt of related revenue. In response to Council Member Kehoe, Mr. Galusha related that ultimately the City will be reimbursed the entire $190,000. MOTION: Made by Council Member P. Anderson, seconded by Council Member Kehoe, that Resolution No. 94-203 be adopted, a resolution of the City Council of the City of Redding authorizing entering into a Consultant Services Contract with DKS Associates for revision of the Shasta County Travel Demand Model, in an amount not to exceed $147,300; and the appropriation of an additional $15,000 for any necessary minor revisions in the scope of work. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution No. 94-203 is on file in the office of the City Clerk. MOTION: Made by Council Member P. Anderson, seconded by Council Member Kehoe, that Resolution No. 94-204 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 2nd amendment to City Budget Resolution No. 94-199 (1) appropriating $162,300 for revisions to the traffic model and (2) authorizing the receipt of $162,300 in revenue. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution No. 94-204 is on file in the office of the City Clerk. ELECTRIC UTILITY COMMISSION SUMMARY REPORT (B-080-160) The Summary Report of the June 23, 1994, Electric Utility Commission meeting was presented to the City Council for its acceptance. Council Member Murray pointed out that the reports which are received from the Electric Utility Commission (EUC) contain recommendations to the City Council which may or may not be accompanied by a staff report. It is the presumption of the EUC and other commissions, that the City Council read the minutes of commission meetings and will take appropriate action. He suggested that reports from the commissions be made part of the City Council agenda. Based on the EUC meeting of June 23, 1994, Council Member Murray suggested that the City direct the architect and engineer for the Corporation Yard to survey the project for demand side management measures which would be incorporated into the project to mitigate the future cost or energy consumption. Interim City Manager McMurry suggested that staff review the matter and report back to the City Council on the matter. Electric Utility Director Lindley stated that he checked with the project's architect who indicated that other than code requirements, no demand side management energy conservation measures have been considered to date. ROUTINE REPORTS Request to FERC for rehearing and for clarification of the Northern California Power Agency (PG&E, Dockets Nos. ER92-595 and ER92-596, Southern California Edison Company, PG&E, San Diego Gas & Electric Company, Docket No. ER92-626) (E-120-050) ADJOURNMENT There being no further business, at the hour of 10:08 p.m., Mayor Anderson declared the meeting adjourned to 8:00 a.m., July 16, 1994, in City Hall Conference Room A, 760 Parkview Avenue, Redding, California, to conduct a workshop to consider the City's General Plan, annexations, and Mello-Roos Districts. APPROVED: Mayor ATTEST: City Clerk