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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1994-08-021 08/02/94 City Council, Regular Meeting City Council Chambers Redding, California August 2, 1994 7:07 p.m. The Pledge of Allegiance to the flag was led by City Attorney Hays. The Invocation was offered by Pastor Hadyn Murphy, Trinity Lutheran 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, Police Chief Blankenship, Electric Utility Operations Manager Ryan, Director of Finance Downing, Principal Planner Keaney, Director of General Services Masingale, Director of Information Systems Kelley, Senior Planner King, Budget Services Officer Starman, Recreation Superintendent Sherer, Housing Supervisor Garrity, Housing Supervisor Meek, Assistant Planner Haddox, City Treasurer Linville, Assistant City Clerk Moscatello, and Secretary to City Council Rudolph. RESOLUTION - Recognizing Mike Carnahan and Erin Wion as the City's Program for Redding Improvement and Developing Excellence (P.R.I.D.E.) Second- Quarter 1994 Co-Winners (P-100-200) Mayor R. Anderson stated that Mike Carnahan and Erin Wion have been selected as the City's Program for Redding Improvement and Development Excellence (P.R.I.D.E.) Second-Quarter 1994 Co-Winners for designing and building in- house the Material Recovery Facility equipment. In researching the purchase of similar equipment, it was discovered the costs would range from $200,000 to $500,000. The system was built in-house for a cost of $85,000. MOTION: Made by Council Member P. Anderson, seconded by Council Member Kehoe, that Resolution No. 94-214 be adopted, a resolution of the City Council of the City of Redding recognizing Mike Carnahan and Erin Wion as the Second-Quarter Co-Winners of 1994 in the City's Program for Redding Improvement and Developing Excellence (P.R.I.D.E.). 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. 94-214 is on file in the office of the City Clerk. Mayor R. Anderson presented Erin Wion with a plaque denoting him as the second-quarter co-winner of 1994 in the City's Program for Redding Improvement and Developing Excellence. Council Member P. Anderson strongly believed that the City needs to develop a cost savings incentive program for employees which provides monetary rewards. She requested that staff develop a policy with some percentage of the cost savings being awarded to the recipient. Due to the significant cost savings of this particular suggestion, she suggested that the policy be retroactive to this date so that it would be included in whatever monetary award program is developed. Mayor R. Anderson requested that Interim City Manager McMurry report back to the City Council with a recommendation. Interim City Manager McMurry explained that when the original program was developed some of these alternatives were considered, therefore, some of the work has already been completed. Staff will bring a report back for the City Council's consideration by the first meeting in September. CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: 2 08/02/94 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 2, check numbers 209299 through 209898 inclusive, in the amount of $3,853,107.49, be approved and paid, Payroll Register No. 2, check numbers 381798 through 382747 inclusive, in the amount of $1,020,400.47, and Automatic Payroll Deposits, check numbers 20282 through 20475, in the amount of $311,615.78, for a total of $1,332,016.25, for the period July 3, 1994 through July 16, 1994, be approved. TOTAL: $5,185,123.74 Treasurer's Report - June 1994 (A-050-100-600) Total Treasurer's Accountability - $ 60,307,879.73 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities - $236,720,093.78 Cash Reconciliation Report - June 1994 (F-205-095-650) It is the recommendation of the Finance Director that the Cash Reconciliation Report as of June 30, 1994, be accepted. Resolution - Sublease Agreement of Office Suite B in Building C at Diestelhorst Landing Office Park between Shasta County Child Abuse Prevention Coordinating Council and Northern California Council of Camp Fire (C-070-100) It is the recommendation of the Director of Planning and Community Development that Resolution No. 94-215 be adopted, a resolution of the City Council of the City of Redding authorizing the Mayor to execute the approval of sublease of Office Suite B in Building C at Diestelhorst Landing Office Park with the Shasta County Child Abuse Prevention Coordinating Council and the Northern California Council of Camp Fire. Set Public Hearing - Rezoning Application RZ-5-94, by Ron Farley (Placer Pines Subdivision) (L-010-230 & S-101-010) It is the recommendation of the Director of Planning and Community Development that a public hearing be set for 7:00 p.m., August 16, 1994, to consider the request to rezone property located within Placer Pines Subdivision from "R1-B2" Single-Family Residential District to "R1-BFM" Single-Family Residential District. Award of Bid - Bid Schedule No. 2878, Single Phase and Three Phase Pole Type Distribution Transformers (B-050-100) It is the recommendation of the Electric Utility Director that Bid Schedule No. 2878, single phase and three phase pole type distribution transformers, be awarded to the evaluated low bidder, WESCO Distribution, Inc., at the bid unit prices during the period of September 1, 1994, through August 31, 1995. Funds for these purchases are included in the 1994-95 budget. Resolution - Agreement among County of Shasta, Cities of Redding and Anderson, and Shasta Community Health Center for Sexual Abuse Examination and Expert Witness Services (P-150-150) It is the recommendation of the Police Chief that Resolution No. 94-216 be adopted, a resolution of the City Council of the City of Redding approving entering into the "Agreement Among County of Shasta, Cities of Redding and Anderson, and the Shasta County Health Center for Sexual Abuse Examination and Expert Witness Services," and authorizing the Mayor to sign same. The agreement shall commence on the date of signing and shall continue in effect through June 30, 1995, with two successive one-year automatic renewal terms. The City's share to finance the training will be $5,771. Resolution - Permit for Commercial Activities at Redding Municipal Airport with Phoenix Leasing Corporation, dba Reno Air Express (C-070-100 & A-090-100) It is the recommendation of the Airports Director that Resolution No. 94-217 be adopted, a resolution of the City Council of the City of Redding 3 08/02/94 approving the Permit for Commercial Activities (passenger air travel and air cargo service) at Redding Municipal Airport between the City of Redding and Phoenix Leasing Corporation, dba Reno Air Express, for the period of August 1, 1994, through July 31, 1995, and authorizing the Mayor to sign same. Award of Bid - Bid Schedule No. 2866, Alarm System Maintenance and Monitoring (B-050-100 & A-050-150) It is the recommendation of the General Services Director that the City Council rescind its action of July 5, 1994, awarding Bid Schedule No. 2866, alarm system maintenance and monitoring, to Northern California Security Systems, as it has not been responsive to City requirements for insurance and a performance bond. It is further recommended that Bid Schedule No. 2866, alarm system maintenance and monitoring, be awarded to the next low bidder, Hue & Cry Security Systems, Inc., in the amount of $37,404. Funds are available to cover the cost of this contract. Resolution - Park Construction and Reimbursement Agreement with Three Seasons Development, Inc. for development of Meadow Creek Park (A-070-300 & P-050) It is the recommendation of the Director of Recreation and Parks that Resolution No. 94-218 be adopted, a resolution of the City Council of the City of Redding approving entering into a Park Construction and Reimbursement Agreement for Meadow Creek Park between the City of Redding and Three Seasons Development, Inc., for a five-year term, and authorizing Mayor to sign same. Upgrade of AS/400 Model B45 Computer (A-070-090 & D-050) It is the recommendation of the Director of Information Systems that the City Council authorize the upgrade of the AS/400 model B45 to a model Century 300 at a cost of $94,816 for hardware, $18,089 for software, $12,623 for five-year maintenance, and $8,186 sales tax for a total of $133,714, to be financed over a four-year period in semi-annual installments of approximately $19,050 per installment. Financing of this equipment will be handled by United Financial of Illinois, Incorporated, a funding company previously authorized by the City Council. Purchase of Two 9336 Model 025 Disk Array Subsystems (A-070-090 & D-050) It is the recommendation of the Director of Information Systems that the City Council authorize the purchase of two 9336 model 025 Disk Array Subsystems at a cost of $28,500 for the two disks, $2,066 sales tax, and $10,708 for five-year maintenance, for a total of $41,274, to be financed over a four-year period in semi-annual installments of approximately $5,900 per installment. Financing of this equipment will be handled by United Financial of Illinois, Incorporated, a funding company previously authorized by the City Council. Resolution - Initiating Abatement Proceedings on the Property Located at 1261 East Street, owned by Richard C. Shave, Sr. and Betty M. Shave (A-030-070) It is the recommendation of the City Attorney that Resolution No. 94-219 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 1261 East Street, owned by Richard C. Shave, Sr. and Betty M. Shave. Summary Report of July 21, 1994, Electric Utility Commission Meeting (B-080-160) It is the recommendation of the Electric Utility Commission that the City Council accept the summary report of the July 21, 1994, Electric Utility Commission Meeting. MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. Voting was as follows: 4 08/02/94 Ayes: Council Members - P. Anderson, Kehoe, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Resolution Nos. 94-215, 94-216, 94-217, 94-218, and 94-219 are on file in the office of the City Clerk. - - - - - - - - CONTINUED PUBLIC HEARING - re Amendment of 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 continued public hearing regarding the amendment of Schedule of Fees and Services Charges. The following documents are on file in the office of the City Clerk: Affidavit of Posting - Continued Public Hearing Finance Department recommendation dated July 25, 1994 Assistant City Clerk Moscatello advised that letters were received from the Greater Redding Chamber of Commerce and Sharrah Dunlap Sawyer, Inc. Director of Finance Downing provided an overview of the Report to City Council dated July 25, 1994, incorporated herein by reference, which reviewed new fees, as well as current fees and the adjustment factors. Ms. Downing recalled that the City Council, at its meeting of July 5, 1994, continued the public hearing to allow more time for citizens and affected groups to consider the proposed adjustments and their hypothetical effect, as well as provide the City with input. In addition, the Planning and Public Works Departments met with the Chamber of Commerce Task Force to provide additional information regarding the proposed increases. Since that meeting, the City has received recommendations from the Greater Redding Chamber of Commerce which involve primarily prospective policy and procedural changes. It is the recommendation of staff that the City Council approve the resolution adopting the amendment to the Schedule of Fees and Service Charges. It is further recommended that the Chamber of Commerce letter be referred to staff for review and recommendation. Dean Ward, Greater Redding Chamber of Commerce, stated that the only exception noted was with regard to the planning and development fees being increased 15 percent. It was requested that this matter be referred to the Traffic Task Force due to the impact over the next five years. Kent Dagg, Shasta Builders Exchange, anticipated that the Traffic Impact Fee Task Force would need an additional three to four weeks to complete its recommendation, which will include a review of the proposed 15 percent increase in planning and development fees. Council Member Kehoe recalled that the City Council wanted to consider all fees in an universal context rather than approving fees on an incremental basis. He suggested that a flow chart be developed enabling the City Council to view all costs associated with developing and conducting business in the City. Director of Finance Downing related that the information would be available for the City Council's review at its workshop on August 9, 1994, and would include a comparison of costs from other cities. Council Member McGeorge suggested deferring a decision on this matter until after the August 9, 1994, meeting. Interim City Manager McMurry suggested that the City Council consider adopting those fees which do not reflect a 15 percent increase. 5 08/02/94 Mr. Dagg related that the only issue the committee raised was with regard to those fees which represented a 15 percent increase. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, to consider the Amendment to the Schedule of Fees and Service Charges exclusive of Planning and Community Development fees and Public Works fees, which are to be considered along with traffic impact fees and other development fees at a later date. The Vote: Unanimous Ayes Mayor R. Anderson continued the public hearing to September 20, 1994. Council Member Murray saw no justification for the proposed increase in fees. He noted that the adopted budget did not anticipate any increased fees and absent a demonstrated need, he opposed the fee increases. Council Member Kehoe stated that given the current economic situation of many of the City's residents, he did not favor increasing fees. Mayor R. Anderson favored increasing fees to keep up with inflation, rather than raising fees 15 to 20 percent at one time. Although the money is not designated for specific projects, he noted that the City has deferred maintenance which needs to be addressed to avoid serious problems in the future. Council Member McGeorge concurred that the City needs to start dealing with some of the deferred maintenance issues. Council Member Murray stated that he would be willing to reconsider his position at a later date if the increased fees are attached to a specific need. MOTION: Made by Council Member McGeorge, seconded by Council Member Murray, to adopt the proposed Amendment to the Schedule of Fees and Service Charges exclusive of the Planning and Community Development fees and Public Works fees. Voting was as follows: Ayes: Council Members - McGeorge and R. Anderson Noes: Council Members - Kehoe and Murray Absent: Council Members - None Abstain: Council Members - P. Anderson Motion failed due to lack of majority vote. Absent direction from the City Council, Mr. McMurry related that staff will continue to bring back fees on an annual basis for review. PUBLIC HEARING - re Application for Ambulance Owner's License by Shasta View Ambulance, Inc. (T-100-030) Council Member P. Anderson and Mayor R. Anderson abstained from discussion and voting on this matter. The hour of 7:00 p.m. having arrived, Vice Mayor Kehoe opened the public hearing regarding the application for an Ambulance Owner's License by Shasta View Ambulance, Inc. 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 Recommendation dated July 21, 1994 Assistant City Clerk Moscatello advised that letters were received from Redding Medical Center and North Valley Ambulance opposing the license. Assistant City Clerk Moscatello related that the City Clerk's Department received an Application for an Ambulance Owner's License from Shasta View Ambulance, Inc. to operate two ambulances. There are currently three approved ambulance companies operating in the City with a total of 12 ambulances. 6 08/02/94 Ms. Moscatello stated that the Redding Municipal Code requires the City Council to determine if public convenience and necessity requires the operation of such a service and it is the applicant's obligation to show that public convenience and necessity require said service. It is recommended that the City Council hold the public hearing and take testimony from the community. If the City Council approves the service, issuance of a license would be subject to submittal of adequate insurance, certificates of compliance from the California Highway Patrol and a background check. In response to Council Member Kehoe, City Attorney Hays related that public convenience and necessity is basically a weighing of evidence whereby it is incumbent upon the applicant to demonstrate that the service which is being proposed is one which is demanded or needed in the community based upon evidence which the applicant believes to be relevant. It is basically a judgement call on the part of the City Council based upon the information provided by the applicant and to a certain degree an individual's own knowledge of the community. Robert Lintern, 523 Country Oak Drive, representing Shasta View Ambulance, Inc., stated that after months of due diligent research, he believed another ambulance service to be a viable business opportunity in Shasta County. The focus of the operation would be on the north part of the County, primarily the City of Shasta Lake. Currently, ambulance service is on a rotational basis, however, he indicated that a territorial split of the County may occur in the future. He explained that research indicates that there have been problems in response times to the northern part of the County because of the base station location. In addition, he has received encouragement from the City of Shasta Lake's community-at-large, as well as the fire districts serving this area. Mr. Lintern proposed to start with two ambulances, hopefully adding a third in the fall of this year or early next year and employe nine full-time employees, with four to six part-time paramedics and emergency medical technicians (EMT). He stated that he is waiting for the California Highway Patrol (CHP) to inspect the ambulances in the near future. The company is also in the final stages of negotiations with Mercy Medical Center to be its base hospital. The application with the Northern California Emergency Medical Services (NCEMS) is in process and is somewhat pending upon the City Council's decision. Mr. Lintern explained they have been monitoring scanners for the last several months and compiling whatever information is available. There appears to be approximately four to five instances a month where no life support unit is available. This necessitates volunteer fire districts be on the scene for an inordinately long period of time waiting for the responding ambulance. His proposed service would have response times at least 5 minutes and 15 seconds quicker than any other ambulance responding to the north from their base station. If approved, this company would be fourth on the rotation system. He cited instances where an ambulance in Anderson has been required to respond to an incident to the north. He hoped to work with other services to ensure that the closest ambulance responds to calls. Mr. Lintern stated that the office would be located on Twin View Boulevard and Interstate 5, with plans to move into a custom built facility in the City of Shasta Lake in approximately two years. The personnel are experienced local EMTs and paramedics, all of which are currently registered and approved by NCEMS. The operations manager has 16 years experience in the emergency medical field. Mr. Lintern stated that his background is in business and he and his family have made a commitment to stay in the Redding area. He looks forward to providing quality service to the City of Redding and requested the City Council's approval to proceed. In response to Council Member Murray, Mr. Lintern stated that a license to operate is not required in the City of Shasta Lake, but he has received encouragement from the City. He related that the company is also in the process of applying for a permit in the City of Anderson. Council Member Murray questioned when Mr. Lintern believed the bifurcation of territory would occur. Mr. Lintern replied that NCEMS, the County, the 7 08/02/94 cities, and the various operating ambulance services would need to meet and work out the details. Both Mercy Hospital and NCEMS perceive this as a possibility in the future. Council Member Murray questioned whether Mr. Lintern had any statistical data to support necessity. Mr. Lintern stated that he had calculated response times, as well as information as to the number of calls received and dispatched by 911. Council Member Murray questioned whether the City has control over dispatching the nearest available ambulance as opposed to the ambulance next on the rotation schedule. Police Chief Blankenship reiterated that the system is on a rotational basis, however, many times an ambulance is not available and a closer ambulance will respond depending on the type of emergency. There are times when the ambulances work closely together and do not necessarily follow the rotation schedule. Overall, he viewed the system as working very well. Conrad Anderson, representing North Valley Ambulance Service, explained that there are currently three ambulance services which hold 13 licenses. There are 3.5 ambulances on duty within the City, three on 24-hour duty and one on 12-hour duty, as well as one unit in Anderson which backups the City of Redding. Because the patient base includes a significant number of welfare and elderly, the economic situation does not permit additional ambulance service to be provided. If another service is authorized, he noted that revenue to the existing services would be reduced by 25 percent and could result in possible employee layoffs. He referenced the call volume data attached to his letter dated July 25, 1994, incorporated herein by reference, which illustrates a negative trend over the past five years. He further noted that the City of Redding Fire Department rescue responses decreased by 580 from 1992 to 1993. Mr. Anderson could not argue the fact that Shasta View Ambulance would have faster response times to the north part of the County. He noted, however, that of the 173 dispatched calls, 40 percent were dry runs or cancellations, thereby resulting in increased costs. He stated that the data provided to the City Council was only for one month and additional data could be provided if required. He did not believe that an additional ambulance service is required in the City. In response to Council Member McGeorge, Mr. Anderson related that North Valley Ambulance has six licenses, Mercy Medical Center has four licenses, and Redding Medical Center currently has 2 with another unit on order to replace a 1986 Ford which was previously sold, for a total of 13 units. He explained that North Valley Ambulance also keeps on duty a 24-hour call pager crew to fulfill its commitment to the community. Council Member Murray questioned who monitors whether the needs of the community are being met with regard to ambulance service. Mr. Anderson explained that the basic authority rests with Shasta County. Over the years, Mercy Medical Center, Redding Medical Center, and North Valley Ambulance have cooperatively tried to work together to ensure the needs of the community are met. In response to Council Member Murray, City Attorney Hays stated that there are statutory immunities which protect the City if there is not adequate ambulance service. In response to Vice Mayor Kehoe, Mr. Anderson opined that there is not a need for the utilization of all 13 vehicles currently licensed. Jerry Fikes, 727 Sun River Lane, representing Mercy Medical Center, spoke in favor of the City Council approving Shasta View Ambulance's application. He noted that there are times when existing resources are not available to respond promptly to 911 calls and the addition of a unit based in the north would make that a less frequent occurrence. He indicated Mr. Lintern's willingness to accept the risk that goes with any new business should be his risk to take. Currently, 75 percent of the ambulances are controlled by Redding Medical Center during the evening hours and 80 percent during daytime hours. The addition of Mr. Lintern's company having a base station assignment at Mercy Medical Center would restore a measure of equity with 8 08/02/94 regard to the control of ambulances in the field. Because of the mechanical nature of the devices in an ambulance, a firm needs approximately three ambulances for every one ambulance on duty. In response to Council Member Kehoe, Mr. Fikes believed Mr. Lintern's statement that approximately four to five times per month there are no life support units available to respond to calls to be an accurate description. He noted that an additional company does not necessarily mean that the circumstance will not occur again, however, it does decreases the chance and would also provide better service to the north part of the County. In response to Council Member Murray, Mr. Fikes stated that a patient is questioned as to his preference of destinations and generally that destination is honored. If the patient is unable to respond, the ambulance's hospital base station then makes that determination. He noted that this is where the disparity regarding Redding Medical Center's control of calls becomes an issue. Council Member McGeorge questioned how a fourth ambulance service would assist in correcting the imbalance if the calls are on a rotational basis. Mr. Fikes stated that Redding Medical Center will refer calls on the east side of town to North Valley Ambulance because it is closer to the call which then leaves Redding Medical Center up on rotation, thereby resulting in a decrease in calls for Redding Medical Center. Mr. Fikes attributed Mercy Medical Center's decreasing number of calls to the increasing number of ambulances which Redding Medical Center and North Valley Ambulance are placing on the streets as opposed to a decrease in the number of emergency responses. In response to Council Member McGeorge, Mr. Fikes explained there are community events which also require ambulances to be in attendance. Mark Eliason, 1165 Arizona Street, Director of Emergency Services at Redding Medical Center, stated that Redding Medical Center agrees that opportunity should be provided to others to provide ambulance service. He did not, however, believe adequate proof was demonstrated that there was an absolute need for another service. With regards to the statement that Redding Medical Center's base station has control of 80 percent of the ambulances, that is true at a certain time, however, it is significantly balanced by the number of trauma patients which are transported to Mercy Medical Center, as it is the designated trauma center for the City of Redding. In addition, there are balances imposed by NCEMS which ensure that ambulance services are as fair and equitable as possible. Mr. Anderson clarified that CHP regulations require that in the absence of a patient's preference, the victim is required to be taken to the nearest facility. Approximately 53 percent of North Valley Ambulance's patients are transported to Mercy Medical Center. Pat Wyckoff, 2365 Walton Avenue, Chief of Summit City Fire Department, stated that approximately two to three times per month an ambulance is not available to respond to the Shasta Lake area. She felt an additional service would be beneficial to the public and permit patients to be taken care of in a timely manner. Vice Mayor Kehoe determined that there were no additional individuals present wishing to speak on the matter and closed the public hearing. Based upon the interpretation previously provided by the City Attorney, Council Member Murray did not believe the applicant demonstrated that sufficient public necessity existed to approve the application. He stated that he would be willing to reconsider this application at some point in the future if data supporting the demonstration of public need could be presented. He requested additional information as to the controlling entity over ambulance companies, their relationship to the Shasta Area Safety Communications Agency (SHASCOM), and the perception of a system which favors one hospital over another. Interim City Manager McMurry stated that staff would provide the City Council with a report describing the system, NCEMS' role, the role of the 9 08/02/94 Shasta County Health Officer, and the current dispatch rotational system. He noted that from an efficiency standpoint, the dispatch rotational system works well. Council Member McGeorge did not believe that the applicant had demonstrated a need for the proposed service. Utilizing a formula of 3 to 1, he believed there to be an approximate 25 percent surplus in the number of licenses currently held. If additional service is needed in outlying area, perhaps some of the current providers can put on additional equipment to service those needs. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, to deny the application for ambulance owner's license by Shasta View Ambulance, Inc. Voting was as follows: Ayes: Council Members - McGeorge, Murray and Kehoe Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - P. Anderson and R. Anderson At the hour of 8:17 p.m., Vice Mayor Kehoe declared the meeting recessed. At the hour of 8:30 p.m., Vice Mayor Kehoe reconvened the meeting to regular session. Vice Mayor Kehoe turned the meeting back over to Mayor R. Anderson. 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 & S-100-614) The hour of 7:00 p.m. having arrived, Mayor R. Anderson opened the public hearing regarding Rezoning Application RZ-6-94. 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 July 25, 1994 Assistant City Clerk Moscatello advised that no protests were received. Director of Planning and Community Development Perry related that the Planning Commission, at its meeting of June 28, 1994, recommended approval of the rezoning of property located within Ravenwood Estates Subdivision, Units 1-9, and Shasta View Manor from "U" Unclassified District to "R-1" Single-Family Residential District for Ravenwood Estates Subdivision and to "R-2" Duplex Residential District for Shasta View Manor. Mr. Perry explained that the purpose of the rezoning is to establish consistency with the City's General Plan designations and to provide more complete land-use information to potential buyers and residents. It is the recommendation of both the Planning Commission and staff that the City Council approve the rezoning as recommended, ratify the Negative Declaration, and offer the ordinance for first reading. Barry Knox, 2320 Sacramento Drive, related that the City's Airports Commission previously recommended that Enterprise Skypark should remain as a relief airport to the Redding area. He stated that he has spoken with the owner of Enterprise Skypark and is currently negotiating a lease agreement for the airport. He cited California Public Utilities Code Sections 21670 through 21679.5, specifically 21675 and 21675.1. He requested that the City Council defer action on this matter until an environmental impact report (EIR) is completed regarding the rezoning application. Mr. Perry questioned whether Mr. Knox was under the impression that the entire airport property was being rezoned. Mr. Knox acknowledged that the rezoning application did not encompass the entire airport property, however, the airport's glide path area needs to continue in existence to prevent constant complaints regarding noise. 10 08/02/94 Mr. Perry explained that Enterprise Skypark does not own the glide path area; however, the City has required that the area be set aside because of the existing runway. Any home constructed in this area would require an approved subdivision map. In response to Council Member P. Anderson, Mr. Perry stated that staff relied upon articles in the newspaper to form this report and at some point in time a determination would need to be made if it is still an operating airport. Dick Osier, 2223 Airstrip Road, stated that when he purchased his property 35 years ago, he was under the impression that the airport would be there forever. Mayor R. Anderson determined that there were no additional individuals present wishing to speak on the matter and closed the public hearing. Mayor R. Anderson questioned whether the code sections cited by Mr. Knox had any bearing on the City Council's decision. City Attorney Hays was not prepared to answer that question without further research. In response to Mayor R. Anderson, Mr. Hays stated that Enterprise Skypark was required to acquire the property for clear zone purposes, but, failed to do so. He noted that the Enterprise Flying Club has moved its location to Redding Municipal Airport. Mr. Perry explained that the Columbia Area Plan was amended by the City Council deleting the airport approach zone. Prior to that decision, a tentative map was filed on the property, however, the City has refused to process it until the matter regarding the airport has been resolved. The Columbia Area Plan was submitted to the Airports Land Use Commission (ALUC) for consideration, however, ALUC indicated that the airport was not within its jurisdiction and did not require its approval. In response to Council Member Murray, Mr. Perry related that the Airports Commission made a report to the City Council several years ago regarding the long-term viability of Enterprise Skypark and encouraged its retention. Because the Airports Commission is an advisory body and given the fact that they do not manage Enterprise Skypark, staff saw no reason to have the Airports Commission comment on the rezoning request. The rezoning application represents a continuation of the development pattern in the area and the City General Plan for the area. The City Council has the option of requiring an EIR, however, he believed it would be a large expenditure and probably accomplish nothing. In response to Council Member P. Anderson, Mr. Perry stated that Enterprise Skypark operates under a permit issued by the State Department of Aeronautics and has a lot of variances which have been grandfathered in. Council Member McGeorge recommended that the disposition of the airport needs to be clear before the City Council can make a decision on the overall use of the property. Council Member Kehoe and McGeorge favored the continuation of the matter to allow staff time to determine if Enterprise Skypark is to continue as an airport. Council Member Murray supported requesting the Airports Commission to make a recommendation on the rezoning application. Mayor R. Anderson reopened the public hearing and continued it to August 16, 1994. ORDINANCE NO. 2091 - re Amendment to Title 17 of the Redding Municipal Code, Subdivision Ordinance (S-100 & L-010-500-050) MOTION: Made by Council Member Murray, seconded by Council Member Kehoe, that the full reading of Ordinance No. 2091 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes 11 08/02/94 MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, that Ordinance No. 2091 be adopted, an ordinance of the City Council of the City of Redding amending Redding Municipal Code Title 17 by repealing Title 17 in its entirety and adding a new Title 17 entitled Subdivision Ordinance. 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. 2091 is on file in the office of the City Clerk. PROJECT PLAYGROUND CONSTRUCTION AGREEMENT (P-050-145) Director of Planning and Community Development Perry related that the City Council in July 1993 agreed to set aside land at the Enterprise Community Park for the construction of a playground by "Project Playground," subject to the following conditions: reservation of the site for two years; an agreement governing maintenance; construction insurance; and an endorsement for replacement materials. Mr. Perry provided an overview of the Report to City Council dated July 20, 1994, incorporated herein by reference, which detailed the proposed agreement involving the City, Project Playground, and the Charitable Foundation of Redding Rotary. The City would be responsible for the maintenance of the facility once constructed and accepted, although it is the intention of Project Playground to remain involved with the project after it is constructed. Mr. Perry conveyed that Project Playground has requested that the word "arsenic" be removed from Item 6 under the Project portion of the agreement, as one of the preservatives contains arsenic. There is a method which stabilizes the arsenic and allows it to meet the Health and Safety Code requirements. It is the recommendation of staff that the City Council authorize the Mayor to sign the agreement on behalf of the City in support of this volunteer community project. Council Member P. Anderson recalled that the City Council requested that Risk Management amend its proposed policy regarding safety plans and insurance provided by volunteer organizations. She believed it unreasonable to request volunteers to purchase insurance for projects which benefit the City. If insurance is deemed necessary, it should be budgeted for and purchased by the benefiting City Department. She supported approving the agreement with the modification that the certificate of insurance be deleted from the agreement. City Attorney Hays believed that the Redding Rotary Charitable Foundation already has insurance in place and this would just require that a certificate be issued for the project. Council Member Murray concurred with Council Member P. Anderson in desiring to see a follow-up report from Risk Management regarding its City Council Policy on volunteer projects. He had some problem with requiring volunteers to acquire insurance; however, he also had a problem with City taxpayers assuming the risk associated with volunteer assistance. Since the required insurance is in place for Project Playground, he did not want to do anything that might delay the project, and therefore, supported approving the agreement as presented. He viewed the City purchasing the required insurance as being a substantive change of policy and requested that a staff report be prepared for the City Council's consideration as soon as possible. MOTION: Made by Council Member Murray, seconded by Council Member Kehoe, approving the Project Playground Construction Agreement with the Charitable Foundation of Redding Rotary and Project Playground with the following modification: The word "arsenic" is to be deleted from Item 6 under the heading of "Project." The Vote: Unanimous Ayes Mayor R. Anderson directed staff to prepare a report on insurance requirements for volunteer projects. 12 08/02/94 AGREEMENT - Northern Valley Catholic Social Services and Catholic Charities of Sacramento, Inc. for the Use of HOME Funds (G-100-075-200) Director of Planning and Community Development Perry provided an overview of the Report to City Council dated August 2, 1994, incorporated herein by reference, which provided a background of Northern Valley Catholic Social Service's proposed housing development which will utilize $300,000 in grant monies from the State Department of Housing and Community Development. It is the recommendation of staff that the City Council adopt the necessary resolution approving the agreement with Northern Valley Catholic Social Services (NVCSS) and Catholic Charities of Sacramento, Inc. specifying the terms and conditions of the City's HOME loan. While in favor of this particular project, Council Member Murray opposed the terms and conditions contained in the note and deed of trust absent seeing any evidence that the terms are justified. In order to get the project started, he was prepared to support the $21,000 draw against soft costs secured by the real property. Before any additional monies are made available, he suggested that the loan terms and conditions be reviewed. He noted that the loan anticipates interest rates of three percent and five percent, with no payments until the fourth year, however, full occupancy is required within 18 months. He opined that the City needs to approach its lending of funds to agencies which support the needs of the community in a more businesslike fashion and develop protocol for its lending program to provide a level playing field. Mr. Perry noted that the agreement for $21,000 is probably far more comprehensive than needed and the money is required to be spent by December. He related that some of Council Member Murray's concerns are based on criteria established either by the Redding Housing Authority or Redding Redevelopment Agency when considering other applications, specifically with regard to the percentages. Council Member Murray acknowledged that he was aware of the December deadline and did not want to miss it. He suggested that between now and the next City Council meeting, staff determine how to fund the balance of the required monies. He supported advancing the $21,000 to permit the project to go forward while staff was reviewing the matter. Jan Maurer, representing NVCSS, related that in addition to the $21,000, NVCSS is required to commit a major amount of upfront monies. Once the architectural drawings are completed, an appraisal can be done which will provide all the information necessary to determine the City's ultimate loan. Absent that information, it is difficult to determine what type of repayment term NVCSS can provide. She explained that as soon as $1 of HOME funds are spent on the project, NVCSS would be committed to the rents established under the contract for the next 20 years. She suggested that the matter be continued for two weeks to allow time for staff to resolve the matter. City Attorney Hays cautioned that when hard and fast guidelines are established, the City Council is requested to waive some of the guidelines because the bottom line does not work out for these types of projects. MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, to defer action on the agreement with Northern Valley Catholic Social Services and Catholic Charities of Sacramento, Inc. for the use of HOME Funds to August 16, 1994. The Vote: Unanimous Ayes Council Member Murray and City Attorney Hays stated that they would work with Planning Department staff to develope some standardized terms for loan agreements. REVIEW OF CITY COMMISSIONS (B-080 & B-080-010 & B-080-160) Mayor R. Anderson recalled that several weeks ago Council Member Murray requested that the City Council review all existing boards, commissions and committees (commission). Each commission was requested to prepare an analysis as to its continuance and in what form. Staff was also requested 13 08/02/94 to evaluate each of these commissions, the impacts on the affected department if the commission were eliminated, the benefits of the commission's continuance, and a possible change in the scope of responsibility. Council Member Kehoe shared five questions he felt were germane when considering each of the commissions: 1) Is the body in the public's interest; 2) Can the functions be performed by an existing body or the City Council; 3) Does the body significantly contribute to the efficiency and effectiveness of City government; 4) The creation and/or maintenance of the body does not create added bureaucracy for City residences, businesses or visitors; and 5) Activities of the commission do not promote a duplication of efforts. He added that the City Council may want to become more actively involved in simplifying the municipal process and possibly increase the frequency of its regularly scheduled meetings. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, that the Board of Administrative Review, Community Development Advisory Committee and the Planning Commission shall remain in their current form. The Vote: Unanimous Ayes Airports Commission Mayor R. Anderson outlined the composition of the Airports Commission and its duties as outlined in the Redding Municipal Code. He noted that a letter of recommendation from the Chair of the Airports Commission dated August 1, 1994, incorporated herein by reference, had been received. Steve Miller, Hillside Aviation, 2600 Gold Street, supported the continuance of the Airports Commission as it represented a good sounding board for the aviation community. Ginnie Mistal, 2572 Bechelli Lane, stated that she was available to answer any questions on behalf of the Airports Commission. Mayor R. Anderson stated that since the City Council is the decision making body, he believed it was important that it be accessible to the people involved. He opined that the functions originally set out for the Airports Commission have been completed, and he saw no need for its continuance. Council Member Murray recommended the elimination of Redding Municipal Code Section 2.44.060(a) and requiring that the commission meet on a quarterly basis. Mayor R. Anderson concurred with Council Member Murray's recommendation and also suggested that the membership be reduced to five as vacancies occur. Council Member Kehoe stated his concern regarding increasing or maintaining levels of bureaucracy and suggested that the recommendation be for a trial period. Ginnie Mistal stated that the Airports Commission has worked very hard the past seven years to be in its current position. She explained the composition of the commission to be as follows: three representatives from the aviation community, one planning representative, one development representative and one commercial air travel industry representative. She noted that this composition is important and allowed valuable recommendations to be made to the City Council. She conveyed that the commission is aware of the need to reduce staff costs and one effort in this direction has been to go to brief notes for minutes, which has reduced staff cost substantially. She recommended that the City Council hold workshops with the commissions to ensure that information is being exchanged. Carl Arness related that commissions allow individuals within the community to become involved. He believed there to be value associated with these individuals donating their time and did not believe commissions should be eliminated based on their apparent cost. Council Member Murray understood the reason for the seven member composition. He acknowledged that volunteers are one of the City's most important assets and they need to be treated with respect. He viewed this process as one of defining the goals and objectives of this City Council 14 08/02/94 with regard to commissions and those roles may be different than those which previously existed. He suggested that Redding Municipal Code Section 2.44.060(b) be amended to read as follows: "To act as an advisory body to the City Council and make recommendations to the City Council concerning the most effective long-range policies impacting the airports to the end that the public may receive the maximum benefit and utilization of the two airports." Mayor R. Anderson concurred with the proposed language regarding long-range policies. MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, directing staff to prepare the necessary ordinance to require that the Airports Commission be reduced to a membership of five as vacancies occur, meet on a quarterly basis, eliminate Section 2.44.060(a) of the Redding Municipal Code and amend Section 2.44.060(b) to read: "To act as an advisory body to the City Council and make recommendations to the City Council concerning the most effective long-range policies impacting the airports to the end that the public may receive the maximum benefit and utilization of the two airports." The Vote: Unanimous Ayes Board of Appeals City Attorney Hays stated that the Board of Appeals is mandated by the Uniform Building Code. Given the requirements of the Uniform Building Code, the City Council took no action with regard to this board. Electric Utility Commission Mayor R. Anderson stated that his position with regard to the Electric Utility Commission (EUC) is basically the same as the Airports Commission. Council Member Murray referenced the EUC's recommendation to continue its existence, reduce its travel budget to $5,000, eliminate one meeting per month, and change its scope of duties. He concurred with the need for the EUC to continue and he supported monthly meetings. The electrical industry is evolving and part of that evolution is demand-side management which requires substantial citizen involvement. The EUC would meet the test of the law for community involvement with regard to demand-side management. The EUC made it very clear during discussions that it took direction from the City Council and recommended that "deemed appropriate" and "as directed" be added to Redding Municipal Code Section 2.46.100(a). In addition, they recommended that 2.46.100(c) be amended to as follows: "Review and report on matters as directed by the City Council that may affect the rate base or charges to electric utility customers." He opposed that suggestion and believed that rate decisions should be reserved for the City Council. He supported the EUC's proposed addition to the code which would allow them to provide recommendations to the City Council regarding future utility technologies which may be useful to the City. Council Member Kehoe received encouragement from Walt McNeill's first letter containing innovative recommendations. He noted that this letter, however, contained suggestions from Mr. McNeill as an individual and not as the Chair of the commission. The letter received from the commission seemed to abandon a lot of the innovative ideas. He favored allowing the commission to sunset and then reconfiguring it along the lines of Mr. McNeill's first suggestion. He opined that many of the EUC's duties represent a duplication of effort and viewed this as an opportunity to simplify the process. Council Member McGeorge favored refining the duties of the commission to fit the City Council's needs rather than letting the commission sunset and starting over. Mayor R. Anderson favored allowing the commission to sunset and then establishing a commission when the true needs are known. In the interim, Council Member Murray can keep the City Council apprised on Electric Department matters. He acknowledged that it may require the City Council to have more meetings but believed that the City Council should become more involved, as well as the City Manager. He also opposed the commission being involved in the rate structure, as it is dictated by a formula. 15 08/02/94 Council Member Murray did not believe the City Council could allow the EUC to sunset without simultaneously committing to City Council meetings every Tuesday. Mayor R. Anderson concurred that the elimination of the EUC would require more City Council time, however, the EUC proposed to reduce its number of meetings to once a month and he did not believe that the commission's elimination would necessarily require weekly meetings. Council Member Murray related that the EUC is comprised of individuals with expertise in the electrical field and it will require more time on the part of the City Council to become familiar with the language associated with technical issues. Council Member McGeorge concurred that the City Council needs to maintain the expertise of the EUC and reiterated that the existing framework should be redefined, possibly utilizing the existing commissioners. Mayor R. Anderson noted that these are volunteers; however, he was concerned about the 30 to 40 percent absence ratio from 1990-1994. MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, to allow the Electric Utility Commission to sunset. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe and R. Anderson Noes: Council Members - McGeorge and Murray Absent: Council Members - None Recreation and Parks Commission It was the consensus of the City Council that the Recreation and Parks Commission should remain as currently provided for in the Redding Municipal Code. Tourism and Convention Commission It was the consensus of the City Council that the Tourism and Convention Commission should remain as currently provided for in the Redding Municipal Code. Senior Citizen Facility Advisory Commission It was the consensus of the City Council that the Senior Citizens Facility Advisory Commission should remain as currently provided for in the Redding Municipal Code. Redding Community Access Corporation Director of Planning and Community Development Perry explained that the Redding Community Access Corporation (Corporation) was created for the following reasons: 1) recognize that public access issues are not always politically acceptable, thereby eliminating the City Council having to deal directly with first amendment issues which may arise; and 2) appoint a body that could conduct fund-raising events for public access. The Corporation is obligated to submit an annual budget proposal to the City Council and staffing is provided via a Cooperation Agreement. In response to Council Member Kehoe, Interim City Manager McMurry conveyed that Director of Community Services Gorman is working with the Corporation to move in the direction of privatization. Mr. Perry related that the Corporation could also merge with another non- profit organization, or Viacom could operate it. Mayor R. Anderson favored the employees eventually becoming employees of the Corporation. It was the consensus of the City Council that the Redding Community Access Corporation should remain as currently provided for in the Redding Municipal Code and that staff is to continue exploring the concept of privatizing the Corporation. Economic Development Corporation 16 08/02/94 Council Member Kehoe questioned whether there might be a problem with the City Council appointing one or two of its own members to be representatives to the Economic Development Corporation. Interim City Manager McMurry believed that the bylaws of the organization would probably need to be amended to permit elected officials to serve on the board. He indicated that he would research the matter and report back to the City Council. Sunset Provisions of Commissions MOTION: Made by Council Member Murray, seconded by Council Member Kehoe, directing staff to prepare the necessary ordinance to sunset the following commissions on October 1, 1997: Airports Commission, Community Development Advisory Committee, Recreation and Parks Commission, Senior Citizen Facility Advisory Commission, and Tourism and Convention Commission. The Vote: Unanimous Ayes At the hour of 10:20 p.m., Mayor R. Anderson declared the meeting recessed. At the hour of 10:30 p.m., Mayor R. Anderson reconvened the meeting to regular session. FIELD TRIP TO LORENZ HOTEL (C-070-010) Director of Planning and Community Development Perry provided an overview of the Report to City Council dated July 27, 1994, incorporated herein by reference, which outlined the Department of Housing and Urban Development's (HUD) offer to sell the Lorenz Hotel to the City and the perceived risks associated with ownership of the building. It is the recommendation of staff that the City Council tour the facility prior to making a decision regarding acquisition of the project. Council Member Murray stated that he would like the City to explore the possibility of acquiring the land but not the building. At the same time, maybe the City should invite non-profit agencies to submit proposals to act as operator/owners of the Lorenz Hotel and lessees of the underlying fee title land from the City, thereby providing the City control without assuming the liability of the building itself. Mayor R. Anderson concurred with Council Member Murray's suggestion. Mr. Perry explained that staff would have to discuss the concept with HUD to determine if it is a viable option and also determine if any of the local non-profit organizations are interested in acquiring the project. MOTION: Made by Council Member Murray, seconded by Council Member Kehoe, to continue consideration of the acquisition of the Lorenz Hotel until after the field trip to view the project. The Vote: Unanimous Ayes SELECTION OF MAYOR PRO TEMPORE (A-050-060) MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, appointing Council Member McGeorge as Mayor Pro Tempore for a term expiring April 1995. The Vote: Unanimous Ayes 1993-94 GRAND JURY FINAL REPORT (B-080-600-800) Interim City Manager McMurry highlighted the Report to City Council dated July 26, 1994, incorporated herein by reference, concerning the 1993-94 Shasta County Grand Jury Final Report. It is the recommendation of staff that the City Council authorize the Mayor to sign the letter attached to the Report to City Council responding to the Final Report of the 1993-94 Shasta County Grand Jury regarding Certificates of Participation debt. MOTION: Made by Council Member P. Anderson, seconded Council Member McGeorge, authorizing the Mayor to forward a letter responding to the Final Report of the 1993-94 Shasta County Grand Jury clarifying the total amount of the Certificates of Participation issues by the City of Redding for 17 08/02/94 electric system improvements and correcting the technical inaccuracy dealing with Certificates of Participation backing alternatives. The Vote: Unanimous Ayes RESOLUTION - Reappropriating Funds for Various Capital Projects * (B-130-070 & B-130-010) Budget Services Officer Starman related that the City Council appropriated funds for a number of projects in fiscal year 1993-94; however, in several instances, those projects were not completed or funds were not encumbered prior to June 30, 1994. In order to complete these projects, it is necessary to reappropriate the funds associated with them. It is the recommendation of staff that the City Council adopt the necessary resolution reappropriating $3,502,500 for various capital projects. MOTION: Made by Council Member McGeorge, seconded by Council Member P. Anderson, that Resolution No. 94-220 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 6th amendment to City Budget Resolution No. 94-199 reappropriating $3,502,500 for various capital projects. 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. 94-220 is on file in the office of the City Clerk. MONTHLY FINANCIAL REPORT - June 1994 (B-130-070) Budget Services Officer Starman provided an overview of the Report to City Council dated July 27, 1994, incorporated herein by reference, regarding the June 1994 Monthly Financial Report. MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, to accept the Monthly Financial Report for June 1994. The Vote: Unanimous Ayes SUMMARY OF CITY COUNCIL WORKSHOP OF JULY 16, 1994 (A-050-250) Director of Planning and Community Development Perry related that the City Council held a workshop on July 16, 1994 to discuss various subjects related to growth and planning. He outlined nine items that the City Council requested additional information on and indicated that the information would be produced over the next several months. Mr. Perry recalled that two items were deferred from the workshop. The issue of City property on Keswick Dam Road being annexed or not in order to relieve the City from paying property taxes, and does the City want to use the vision plan process to develop the public's view on various topics. Mr. Perry conveyed that the Planning Department will present the Vision Plan at an upcoming City Council meeting, and requested the City Council's guidance on options relating to the Keswick Dam Road property. Council Member Murray requested that the reports from the workshop be brought back to the City Council in the form of action items, rather than information items. MOTION: Made by Council Member Murray, seconded by Council Member P. Anderson, directing staff to sell the City-owned property located on Keswick Dam Road. The Vote: Unanimous Ayes AGREEMENT - Shasta County Air Quality Management District re Air Quality Grant for Fiscal Year 1994-95 (E-020-010) Director of Planning and Community Development Perry provided an overview of the Report to City Council dated July 20, 1994, incorporated herein by reference, concerning the $50,000 air quality grant offer from the Shasta County Air Quality Management District (District), the related agreement, and the proposed programs for the 1994-95 grant cycle. The funding source 18 08/02/94 for the grant is the surcharge fee ($3.00) levied by the County's Air Pollution Control Board for registration of vehicles in Shasta County. The revenue from the fee can only be used to fund programs and projects that reduce automobile emissions to improve the region's air quality. Staff believes the agreement fulfills the City's ongoing obligations of air quality management. If the City Council concurs, it is recommended that the necessary resolution be adopted approving the agreement with the District. Council Member Murray stated that air quality programs need to be developed on a regional basis, as the City cannot maintain air quality in the basin by itself. The City has adopted a General Plan Air Quality Element; however, none of the three other entities have adopted similar elements. Proceeding with Air Quality Education and Design Guidelines (Work Plan #5) as outlined in the agreement appears to be ahead of the other entities, and he suggested that the agreement be modified to include other air quality programs that address more immediate needs. Mr. Perry related that the grant offer was based on the application which the City Council directed staff to submit last spring. Staff would have to approach the Air Quality District to determine if it is willing to amend its grant offer. Staff believed the City would be better off trying to develop an answer at the City level rather than having it dictated. He emphasized that improving air quality requires a consensus of all the affected agencies, as well as the development community and any other interest parties. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, approving the grant from the Shasta County Air Quality Management District in principal and directing staff to seek an amendment to Item 5 of the Air Quality Management Work Program for Fiscal Year 1994-95 to focus on other air quality related programs which staff may recommend. The Vote: Unanimous Ayes RESOLUTION - Assumption of Contract with Russelectric, Inc. and MLP Energy, a Limited Partnership, for Work on Redding Power Combustion Turbine Project (E-120-150) Council Member Kehoe abstained from voting and discussion on this matter and entered his letter dated August 2, 1994, incorporated herein by reference, into the record. Electric Utility Operations Manager Ryan explained that the City is in the process of arbitration with MLP Energy (MLP), a California Limited Partnership, with regard to the contract between MLP and the City of Redding for the construction of the Redding Power Gas Turbine Peaking Project (Project). The City's Special Counsel has determined that the City is entitled to proceed at this time to negotiate a contract for completion of the construction of the Project with Zurn/NEPCO (NEPCO). The City's Special Counsel has opined that the City has the right to assume the contract which MLP entered into with Russelectric for the provision of the control system for the Project. Mr. Ryan recommended that the following three conditions be added: 1) Require that Russelectric be agreeable to extending the date for beginning of start-up to November 1, 1994; 2) Acknowledge that the City is the principal under the contract; and 3) Provide a Performance Bond to the City of Redding as called for in Purchase Agreement No. 532-D. It is the Electric Department's opinion that the most expedient and effective way to complete the control system for the Project is for the City to assume the contract between Russelectric, Inc. and MLP and to assume the position of principal. It is, therefore, the recommendation of staff that the City Council adopt the necessary resolution ratifying the contract between Russelectric and MLP and put the City in the position of Principal with the noted conditions. MOTION: Made by Council Member McGeorge, seconded by Council Member Murray, that Resolution No. 94-221 be adopted, a resolution of the City Council of the City of Redding directing that the City of Redding (1) assume Purchase Agreement No. 532-D between Russelectric, Inc. and MLP Energy for the provision of the control system at the Redding Power Gas Turbine Peaking 19 08/02/94 Project; and (2) assume the position of principal subject to the following conditions: (1) Require that Russelectric be agreeable to extending the date for beginning of start-up to November 1, 1994; (2) Acknowledge that the City is the principal under the contract; and (3) Require a performance bond. Voting was as follows: Ayes: Council Members - P. Anderson, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Kehoe Resolution No. 94-221 is on file in the office of the City Clerk. Resolution - Revision No. 1 to the Third Amendment to the Agreement for Caretaking and Support Services with Black & Veatch Construction, Inc. (E-120-150) Council Member Kehoe abstained from voting and discussion on this matter and entered his letter dated August 2, 1994, incorporated herein by reference, into the record. Mayor R. Anderson provided an overview of the scope of work to be completed and the associated costs. Electric Utility Operations Manager Ryan provided an overview of the Report to City Council dated June 28, 1994, incorporated herein by reference. He explained that by modifying the existing agreement with Black & Veatch, several months work can be eradicated by eliminating the selection process to acquire the needed assistance in replacing the function which MLP was to have provided in connection with Project start-up activities. The time necessary for other consultants to become familiar with the project could cause a delay. Staff believes that Black & Veatch is the logical choice to perform the necessary functions of acquiring services and materials as needed to complete the start-up of the Gas Turbine Project. It is, therefore, the recommendation of staff that the City Council adopt the necessary resolution providing for the revision of the existing agreement to allow Black & Veatch to provide the necessary materials and services. He added included in the agreement is that the City would purchase a performance bond on behalf of Black & Veatch. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, that Resolution No. 94-222 be adopted, a resolution of the City Council of the City of Redding approving entering into Revision 1 to the Third Amendment to the Agreement for Caretaking and Support Services entered into by and between the City of Redding and Black & Veatch Construction, Inc. (C- 2843), and authorizing the Mayor to sign same. Voting was as follows: Ayes: Council Members - P. Anderson, McGeorge, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Kehoe Resolution No. 94-222 is on file in the office of the City Clerk. ORDINANCE - re Composition of Redding Redevelopment Agency (R-030) City Attorney Hays related that the Redding Redevelopment Agency, at its meeting of July 18, 1994, recommended that the Redding Municipal Code be amended to allow members of the community to serve on the Redding Redevelopment Agency. Council Member Kehoe offered Ordinance No. 2092 for first reading, an ordinance of the City Council of the City of Redding amending Redding Municipal Code Chapter 2.64, Redevelopment Agency, by amending Section 2.64.010 entitled "Establishment" providing for members of the community to serve on the Redding Redevelopment Agency. ADJOURNMENT There being no further business, at the hour of 11:18 p.m., Mayor Anderson declared the meeting adjourned to 6:30 p.m., August 9, 1994, in City Hall 20 08/02/94 Conference Room A, 760 Parkview Avenue, Redding, California, to discuss the City's Capital Improvement Plan and financing capital improvements. APPROVED: Mayor ATTEST: Assistant City Clerk