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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1994-11-011 11/01/94 City Council, Regular Meeting City Council Chambers Redding, California November 1, 1994 7:00 p.m. The Pledge of Allegiance to the flag was led by City Attorney Hays. 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 Electric Utility Lindley, Director of Planning and Community Development Perry, Police Chief Blankenship, Electric Utility Engineering Manager Russell, Fire Chief Bailey, Police Captain Byard, Director of Finance Downing, Assistant City Engineer Curtis, Principal Planner Keaney, Public Works Operation Manager Russell, Director of Recreation and Parks Riley, Superintendent-Wastewater Craig, Director of Information Systems Kelley, Director of Personnel Bristow, Director of Utilities/Customer Service Vokal, 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 Minutes - Adjourned Regular Meeting of September 10, 1994 Special Meeting of September 20, 1994 Regular Meeting of September 20, 1994 Special Meeting of September 28, 1994 Special Meeting of September 29, 1994 Special Meeting of October 4, 1994 Regular Meeting of October 4, 1994 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 8, check numbers 212666 through 213166 inclusive in the amount of $2,995,693.73, be approved and paid and Payroll Register #9, check numbers 387444 through 388216 inclusive, in the amount of $926,177.12, and Automatic Payroll Deposits, check numbers 21673 through 21825 inclusive, in the amount of $318,165.75, for the period of October 9, 1994, through October 22, 1994, be approved. TOTAL: $4,240,036.60 Treasurer's Report - September 1994 (A-050-100-600) Total Treasurer's Accountability - $ 60,677,296.36 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities - $222,178,259.41 Cash Reconciliation Report - September 1994 (F-205-095-650) It is the recommendation of the Finance Director that the Cash Reconciliation Report for September 1994 be accepted. Annexation 94-1, Oasis Road Area (A-150-250) It is the recommendation of the Director of Planning and Community Development that the City Council authorize staff to submit the survey results of additional properties for Annexation 94-1, Oasis Road, to the Local Agency Formation Commission (LAFCO) at its December meeting, and recommend that the boundary of Annexation 94-1 remain unchanged. Resolution - Application for Grant Funds to Construct Yuba Street Streetscape Project (G-100-170 & R-030-145-350) It is the recommendation of the Director of Planning and Community Development that the Resolution #94-306 be adopted, a resolution of the City Council of the City of Redding approving the application for grant funds for 2 11/01/94 the environmental enhancement and mitigation program under Section 164.56 of the Streets and Highway Code for the Yuba Street Streetscape Project. 1995 Community Development Block Grant Program Focus (G-100-030-040) It is the recommendation of the Director of Planning and Community Development that the City Council accept the Community Development Advisory Committee's recommendation regarding the designated community needs and issues which are to be the focus of the 1995 Community Development Block Grant Program. Set Public Hearing - re Rezoning Application RZ-9-94, by Dr. James Crummett and the City of Redding (1276 & 1290 West Street) (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., November 15, 1994, to consider the rezoning of property located at 1276 and 1290 West Street from "R4-25-F" Multiple-Family Residential District with Site Plan Review Combining District to "CO" Office District. Resolution Setting Public Hearing - re Abandonment Application A-7-94, by Elmer Swanson, Jr. (3000 Stonecrest Place) It is the recommendation of the Director of Planning and Community Development that Resolution No. 94-307 be adopted, a resolution of the City Council of the City of Redding rescinding Resolution No. 94-298 and declaring its intention to vacate and abandon a portion of open space easement on Lot 9 (3000 Stonecrest Place) dedicated to the City of Redding with the recording of Unit 11 of the Country Heights Subdivision (A-7-94), and setting a public hearing for 7:00 p.m., December 6, 1994. Redding Rancheria - 60-Day Extension of Temporary Water Service Agreement (W-030-500) It is the recommendation of the Director of Planning and Community Development that the City Council authorize a 60-day extension of the temporary water service agreement with the Redding Rancheria. Award of Bid - Bid Schedule No. 2889, Aluminum Overhead Conductor (B-050-100) It is the recommendation of the Electric Utility Director that Bid Schedule No. 2889, aluminum overhead conductor, be awarded to the evaluated low bidder, Western States Electric, in the amount of $82,895.67. Funds for this purchase are included in the 1994-95 budget. Resolution - Appropriating Funds for Transfer of Vehicle from General Services to Utilities Customer Service * (B-130-070 & A-050-700) It is the recommendation of the Director of Utilities/Customer Service that Resolution No. 94-308 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 22nd Amendment to City Budget Resolution No. 94-199 appropriating $9,925 for the transfer of a used 1991 Ford cargo van from General Services to Customer Service. Resolution - Amending Redding Employees Organization/SEIU Supervisory Schedule of Classifications and Salary Ranges (P-100-320 & P-100-050-126) It is the recommendation of the Personnel Director that Resolution No. 94-309 be adopted, a resolution of the City Council of the City of Redding amending Resolution No. 94-91 by repealing exhibits A-2, A-3, and A-4, and adding new Exhibits A-2, A-3, and A-4 to the Memorandum of Understanding of the Redding Employees Organization of Service Employees International Union, Supervisory Employees' Unit, deleting the classifications of Housing Supervisor-Programs and Rentals and Housing Supervisor-Rehab; and adding the new classification of Housing Program Supervisor at a salary range of $2,825 to $4,456. Resolution - Awarding Contract to Motorola, Inc. for the Purchase of Two-Way Trunked Radios (B-050-100 & C-175-750) It is the recommendation of the Director of General Services that Resolution No. 94-310 be adopted, a resolution of the City Council of the City of Redding authorizing the bypass of the formal bidding process; the awarding of a contract to Motorola Inc (sole vendor) for the purchase of two-way trunked 3 11/01/94 radios for various City departments totalling $91,400; and the execution of the necessary documentation by the Interim City Manager. Funds for this purchase are included in the 1994-95 budget. Resolution - Destruction of Certain Documents (A-050-055-750) It is the recommendation of the City Clerk that Resolution No. 94-311 be adopted, a resolution of the City Council of the City of Redding authorizing the destruction of certain documents. Notice of Completion - Bid Schedule No. 2865, 1993/94 Asphalt Overlay Program (B-050-020 & S-070-200) It is the recommendation of the Director of Public Works that Bid Schedule No. 2865 (Job No. 9823), 1993/94 Asphalt Overlay Program, awarded to J. F. Shea, be accepted as satisfactorily completed and the City Clerk be authorized to file a Notice of Completion. The final contract price is $865,062.71. Resolution - Accepting Streets and Acceptance of Improvements, Parcel Map LS- 7-93 (L-010-150) It is the recommendation of the Director of Public Works that Resolution No. 94-312 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation Tenaya Court (LS-7-93). It is further recommended that the improvements for Parcel Map LS-7-93 be accepted as satisfactorily completed. Resolution - Accepting Streets and Acceptance of Improvements, Parcel Maps LS-9-92 and LS-10-92 (L-010-150) It is the recommendation of the Director of Public Works that Resolution No. 94-313 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation Bidwell Road (LS-9-92 and LS-10-92). It is further recommended that the improvements for Parcel Maps LS-9-92 and LS-10-92 be accepted as satisfactorily completed. Resolution - Amending Contract with United States of America providing for water service to the Buckeye Area (W-030-050) It is the recommendation of the Director of Public Works that Resolution No. 94-314 be adopted, a resolution of the City Council of the City of Redding authorizing entering into a contract with the Bureau of Reclamation, to supersede Contract No. 14-06-200-5272A Dated February 22, 1971, providing for water service to the Buckeye Area. Notice of Completion - Bid Schedule No. 2768, Construction of Beltline 115/12kV Substation (B-050-020 & E-090-140-075) It is the recommendation of the Director of Public Works that Bid Schedule No. 2768 (Job No. 9284-15), construction of the Beltline 115/12kV Substation, awarded to Ray Toney and Associates, be accepted as satisfactorily completed and the City Clerk be authorized to file a Notice of Completion. The final contract is $883,500. Resolution - Initiating Abatement Proceedings at 929 Fell Street, owned by Bob M. and Tammie McNeil (A-030-070) It is the recommendation of the City Attorney that Resolution No. 94-315 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 929 Fell Street, owned by Bob M. McNeil and Tammie McNeil. MOTION: Made by Council Member McGeorge, seconded by Council Member P. Anderson, 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 & R. Anderson 4 11/01/94 Noes: Council Members - None Abstain: Council Members - None Absent: Council Members - None Resolution Nos. 94-306, 94-307, 94-308, 94-309, 94-310, 94-311, 94-312, 94- 313, 94-314 and 94-315 are on file in the Office of the City Clerk. REDDING AREA REFUGEE FORUM - Request to Place Signs (A-050-060) Tom O'Mara, representing the Redding Area Refugee Forum (RARF), proposed the erection of signs on major roads at or near the City limits of Redding which contain the statement, "No Room for Racism," along with the City's seal. He stated that the signs would convey that racism is unacceptable in the City of Redding. He indicated that RARF would work with interested local organizations and manufacturers to produce the signs at no cost to the City and RARF would provide any necessary sign maintenance. The City would only be required to provide the necessary labor to install the signs. He submitted petitions containing over 325 signatures supporting the proposal. Isaac Lowe, Past President of the Redding Branch of the NAACP, explained that the NAACP's purpose is to eliminate discrimination in all phases of American life. She is concerned about the increasing rate of violence and crime associated with racism throughout the City, County and State. She stated the signs will exhibit that residents of Redding and the community will not tolerate racism. She urged the City Council to approve RARF's request. Rod Lindsey supported the proposal. He stated that while the community is comprised of many different ethnic groups, their blood is the same color. He stressed the need for the community's youth to understand the importance of working together. In order to better understand the Indian culture, he presented each City Council Member with a booklet entitled The American Indian, Yesterday, Today and Tomorrow. Council Member Murray stated that while he did not oppose the concept, he believed that the statement of how one lives is more important than a sign and was not convinced the placement of a sign would achieve a meaningful change. If approved, other special interest groups might have similar requests. He stressed that the character of a community speaks louder than any other type of effort and believed that energy could be utilized in a better manner to combat the problem. Council Member Kehoe acknowledged the merit of Council Member Murray's comments; however, he believed the signs would reflect the community's positive attitudes and behaviors. MOTION: Made by Council Member McGeorge, seconded by Council Member P. Anderson, approving the placement of "No Room for Racism" signs at the City limits of Redding by City of Redding crews, with the Redding Area Refugee Forum (RARF) providing and maintaining said signs. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, and R. Anderson Noes: Council Members - Murray Absent: Council Members - None CONTINUED PUBLIC HEARING - re Amendment to Schedule of Fees and Service Charges (F-205-600) The hour of 7:00 p.m. having arrived, Mayor R. Anderson opened the continued public hearing regarding the amendment to the schedule of fees and service charges. The following documents are on file in the office of the City Clerk: Affidavit of Posting - Continued Public Hearing Planning Department recommendation dated October 28, 1994 City Clerk Strohmayer advised that no protests were received. Given the length of the agenda, Director of Planning and Community Development Perry recommended that the public hearing be continued to November 15, 1994. 5 11/01/94 Mayor R. Anderson continued the public hearing to November 15, 1994. PUBLIC HEARING - Proposed November 1994 Electric Utility Rate Increase and Establishing a Projected November 1995 Rate Adjustment for Fiscal Year 1996 Planning Purposes (E-090-100) The hour of 7:00 p.m. having arrived, Mayor R. Anderson opened the public hearing regarding the proposed November 1994 Electric Utility rate increase and establishing a projected November 1995 rate adjustment for fiscal year 1996 planning purposes. The following documents are on file in the office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Electric Department recommendation dated October 25, 1994 City Clerk Strohmayer advised that letters were received from the following individuals opposing the rate adjustment: Ann Divine, John Hallis and Clint Bailey. Electric Utility Director Lindley stated that the City Council conducted an afternoon workshop to review the current Electric Department long-term financial forecast required by the Rate Mechanism. During the workshop, staff presented a review of changes which have occurred since last year's forecast. He indicated that the resulting outcome of this year's forecast is not significantly different from the forecast the City Council received last year. The projected increase per-unit cost to purchase and produce power accounts for nearly all of the projected rate increases for the next five years. He explained that if power purchase costs were to remain constant, the projected rate increases over the 1994-to-1999 time period would be reduced to one 4.8 percent increase in fiscal year 1997. Mr. Lindley related that staff believes the assumptions underlying the forecasts developed for the fiscal year 1995 electric rate proceedings are sound, based upon the best information presently available. Staff has concluded that a 3.42 percent rate adjustment for fiscal year 1995 and a forecasted 6.0 percent rate adjustment for fiscal year 1996 meet the parameters of the City Council's adopted Electric Utility Rate Adjustment Mechanism and Resolution No. 93-133 concerning the Electric Utility annual budget and rate review process. Electric Utility Resources Manager Coleman reviewed the following information: 1) Electric Utility Rate Adjustment Mechanism Development History and Objectives - The objectives of the rate mechanism are as follows: a) maintain a financially healthy utility; b) provide rate stability; c) avoid excessive revenues; and d) provide planning guidelines; 2) Rate Adjustment Mechanism Summary or Parameters - The Rate Adjustment Mechanism requires the following: a) debt service coverage ratio is to be at least 1.2 and, if possible, below 1.4; b) end-of-year reserve is to be at least 20 percent of operation and maintenance and, if possible, below 30 percent of operation and maintenance; c) limit, if possible, annual rate increase to 6 percent or less; and d) prepare for future major expenditures; 3) Mechanism for Activating Consideration of Electric Utility Rate Adjustments; 4) Historical Electric Utility Reserves from 1989 to 1994 - The 1994 electric utility reserve increase of $10,000,000 is attributed to the following: a) A one-time rebate received from the Western Area Power Administration (WAPA). This $6,100,000 rebate was the result of a lawsuit settlement with Pacific Gas & Electric; and b) The City was also able to negotiate a provision in the contract with PG&E concerning the construction of the PG&E upgrades at the intersection of Highway 273 and Clear Creek toward Cottonwood whereby PG&E is required to rebate the City a portion of the initial capital costs based on the City's gas usage. A $4,000,000 rebate is anticipated this fiscal year; 5) Projected Net Power Costs per Retail KWH Sold; 6) Historical Electric Utility Resources; 7) Historical versus Current Rate Forecast; 8) City of Redding - Electric Rate Forecasting Models; 9) City of Redding Energy Capacity Resources; 10) City of Redding Electric Estimated Energy Use; 6 11/01/94 11) Projected Net Expenses; 12) Projected Average Retail Rates; 13) Forecast of Average Retail Rates - With and Without Resource Development -It was stressed that resource development was not intended to lower rates but permit rates to rise slower; 14) Typical Rate Comparisons at Time of Resource Commitment; 15) Forecast of Total Retail Revenue With and Without Resource Development; 16) Projected Electric Rate Increase Pursuant to Rate Mechanism - Pursuant to the rate mechanism, a rate adjustment for 1995 of 3.42 percent is recommended. The following rate adjustments are forecasted for planning purposes: 1996 - 6 percent; 1997 - 6 percent, 1998 - 5.2 percent; 1999 - 6 percent; and 2000 - zero increase; 17) Projected Debt Service Coverage Ratios with Rate Increase Consistent with Rate Mechanism - The proposed rate adjustments allow the City to meet the 1.2 debt service coverage ratio in 1995, 1996, and 1997. Bond covenants require the City to maintain a 1.0 debt service coverage ratio. If the City were to violate the 1.0 debt service coverage ratio, the bondholders could seek a court order forcing a rate increase to meet the debt service coverage ratio. It is predicted that if there were no increase this fiscal year or next fiscal year, the City would be in violation of its 1.0 debt service coverage ratio requirement; 18) Projected Reserves with Rate Increase Consistent with Rate Mechanism - Rate adjustments for 1998 and 1999 are being driven by the need to maintain 20 percent of operation and maintenance in reserves; 19) Projected Debt Service Coverage Ratios with No Future Rate Increases; 20) Retail Bill Comparisons; 21) Commercial Bill Comparisons; 22) Cumulative Increases from 1984-1994 - Residential Monthly Bill Redding versus PG&E; 23) Fiscal Year 1995 Rate Adjustment - The following rate adjustments were recommended: Fiscal year 1995 - 3.42 percent rate; and fiscal year 1996 -6.0 percent forecasted for utilization in the upcoming budget review process; 24) Rate Increase Options - This review included scenarios regarding rebating the $10,000,000 increase to customers or paying down existing bond debt. It was not known what type of penalty might be realized by paying down existing bond debt. Mayor R. Anderson determined that there were no individuals present wishing to speak on the matter and closed the public hearing. In response to Mayor R. Anderson, Mr. Coleman stated that a two percent rate adjustment effective November 1, 1994, and a six percent rate adjustment in subsequent years would have the following effect: 1996 1997 1998 1999 Debt Service Coverage Ratio 1.12 1.11 1.59 1.59 Reserves (% of Operation and Maintenance) 37.60 23.80 16.00 14.40 In response to Council Member P. Anderson, Mr. Coleman cautioned that the figures depicted on the viewgraph concerning the prepayment of bond debt in the amount of $10,000,000 could change if there is an associated prepayment penalty. Interim City Manager McMurry interjected that a prepayment penalty is usually less than five percent. Council Member Kehoe requested Mr. Coleman to explain why a rate adjustment is still necessary given the $10,000,000 rebate. Mr. Coleman explained that the rate adjustments for fiscal year 1995 and 1996 are primarily driven by the need to show strong debt service coverage ratios. The only way reserves affect the debt service coverage ratio is through earned interest, which is a modest percent in relation to other items affecting the debt service coverage ratio. In response to Council Member P. Anderson, Mr. Coleman stated that the prepayment of bond debt in the amount of $10,000,000 would provide lower rate adjustments for the first five years; however, higher rates would result in subsequent years. He reiterated that the scenario depicted on the viewgraph does not take into account a prepayment penalty. 7 11/01/94 Council Member Murray was reluctant to change the rate mechanism at the present time and recommended that the City Council review the rate mechanism before the next rate adjustment. He also suggested that the reserves remain in place until the Clear Creek Road project is fully operational. He opposed providing a rebate and later having to back charge residents due to unforeseen costs. The motion made by Council Member Murray to approve the 3.42 percent Electric Utility rate increase, effective November 1, 1994, and establish a projected fiscal year 1996 6.0 percent Electric Utility rate increase died due to lack of a second. Mayor R. Anderson noted that the rate mechanism is primarily a guideline. He expressed concern that the Electric Utility's reserves have grown from $5.4 million in 1984 to $24 million in 1994. He did not want today's customers paying higher rates to build reserves for tomorrow's customers. Council Member McGeorge agreed that this year's rate adjustment should stay within the parameters of the rate mechanism. He recommended that the City Council review the rate mechanism before the next rate adjustment to determine if future rate projections can be lowered. In response to Council Member P. Anderson, Mr. Coleman indicated that the only way to even out the proposed rate adjustments would be to increase this year's rate adjustment or lower the parameters of the rate mechanism. Due to recent bond refinancing, he was not convinced that the prepayment penalty on existing bond debt would not be substantial. Council Member Murray inquired whether the City Council could examine the Electric Utility's forecasting goals in approximately four months. Mr. Lindley stated that staff would need to review the total debt structure and determine associated benefits and impacts. He explained that the forecasted rate adjustment is developed from known factors which currently exist and is utilized in the budget process. He stressed that the forecasted rate adjustment is not necessarily the rate adjustment which would be adopted the following year. MOTION: Made by Council Member McGeorge, seconded by Council Member P. Anderson, to adopt Resolution No. 94-316, a resolution of the City Council of the City of Redding establishing the electric utility rates for service customers within the corporate limits of the City of Redding, effective November 1, 1994, by increasing said rates 3.42 percent. Voting was as follows: Ayes: Council Members - P. Anderson, McGeorge, Murray and R. Anderson Noes: Council Members - Kehoe Absent: Council Members - None Resolution No. 94-316 is on file in the office of the City Clerk. MOTION: Made by Council Member McGeorge, seconded by Council Member P. Anderson, to direct staff to gather additional information for presentation to the City Council the second meeting in January 1995 outlining alternatives for lowering future projected rate adjustments. Voting was as follows: Ayes: Council Members - P. Anderson, McGeorge, Murray and R. Anderson Noes: Council Members - Kehoe Absent: Council Members - None PUBLIC HEARING - re Appeal of Fine for Grading Violation by Mark Gunlogson (Gunner/Clermont, Inc.) (3485, 3490, 3497, 3509, 3520, 3533, and 3570 Old Lantern Drive and 3560 First Cabin Court) (A-070-055 & S-100-654-700) The hour of 7:00 p.m. having arrived, Mayor R. Anderson opened the public hearing regarding the appeal of fine for grading violation by Mark Gunlogson (Gunner/Clermont, 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 Public Works Department recommendation dated October 27, 1994 8 11/01/94 City Clerk Strohmayer advised that no protests were received. Assistant City Engineer Curtis related that the Planning Commission, at its meeting of August 23, 1994, denied an appeal of fines imposed to Gunner/Clermont, Inc. by the Public Works Director for a grading violation in the River Ridge Terrace Subdivision. The $5,000 fine paid on October 20, 1994, is now being appealed to the City Council. Mr. Curtis indicated that a letter received from Roger Froslie of Evergreen Engineering was the basis for the appeal and the Report to the Planning Commission. The letter stated that the previous owner, Don Davis, had partially graded some of the lots and stockpiled material on other lots which were not graded when the subdivision was developed. The Public Works Department does not have any subsequent grading permits issued for these lots. Mr. Curtis explained that Section 16.40.050.(b)(1) of the Redding Municipal Code lists exceptions to the requirement to obtain grading permits. On lots which are excavated less than 100 cubic yards and less than two feet vertical depth and with slopes 2:1 or flatter, a permit would not be required. The code also provides that on lots with fills of less than 50 cubic yards and less than three feet of vertical depth, a permit would not be required. He related that the four lots which were excavated at 3490, 3520, and 3570 Old Lantern Drive and 3560 First Cabin Court were all excavated in excess of 500 cubic yards, each with an average depth of three to five feet, and with slopes near vertical (1/2:1). The four lots which were filled at 3485, 3497, 3509, and 3533 Lantern Drive were each in excess of 500 cubic yards, with an average depth of six to eight feet. All of these lots are well in excess of the minimum threshold requiring permits. Mr. Curtis stated that subsequent to the Stop Work Order, a grading permit was applied for on August 9, 1994, and issued on September 14, 1994, with 95 percent of the grading work now completed. It is the recommendation of staff that the City Council deny the appeal and uphold the $5,000 fine. Roger Froslie, Evergreen Engineering, explained that Mark Gunlogson purchased ten lots from Don Davis in the River Ridge Terrace Subdivision in an "as is" condition, with the understanding that Mr. Gunlogson would prepare the lots for construction. Mr. Gunlogson hired a contractor to do the necessary grading and retained Brown and Mills to monitor the construction and perform compaction tests. Mr. Gunlogson did not believe it was necessary to obtain a grading permit because there was a substantial stockpile of material on lots 3 and 4. Mr. Froslie stated that both he and Mr. Gunlogson did not believe the grading ordinance required a grading permit to place dirt once it was on the lot. The City, however, was not aware of the stockpile on the lots. The stockpiled material was used as fill in the back of lots 1, 2, 3, and 4, which until that time, were not considered to be useable lots. Mr. Gunlogson also excavated lots 34, 36, and 37 and a small amount off of lot 8 to continue the fill process. Upon observation of the work, the City immediately issued a Stop Work Notice, as well as a $5,000 fine, with no discussion. Mr. Froslie opined that at the time the Stop Work Notice was issued, Mr. Gunlogson was not in violation of the grading ordinance, as he had not moved 800 yards beyond the pile that was already on the site. After the issuance of the Stop Work Notice, Mr. Gunlogson hired Evergreen Engineering to prepare a grading plan. A grading permit has been issued and the project is essentially completed, with the exception of some hydroseeding work. He believed the $5,000 fine and Stop Work Notice to be unwarranted and that there should have been further discussion prior to either occurring. He, therefore, requested that the $5,000 fine be rescinded. In response to Council Member Murray, Mr. Curtis stated that a grading violation fine is assessed to the property owner. In response to Council Member Murray, Mr. Froslie opined that Gunner/Clermont, Inc. did not need a grading permit to lay down the stockpiled dirt. 9 11/01/94 Council Member P. Anderson questioned whether the problems depicted in the pictures have been corrected. Mr. Curtis testified that the problems have been corrected as the permit process has been followed and the work is approximately 95 percent complete. He noted there is still some erosion control work which needs to be completed. In response to Council Member McGeorge, Mr. Curtis stated that staff's figures are based on an "as built" subdivision. He explained that at the point the streets were accepted for maintenance, the subdivision had been graded and the lots were considered buildable. He clarified that the ordinance permits 100 yards of material to be moved during excavation; but only permits 50 yards of fill per lot to be moved. Mr. Froslie estimated that the entire project involved the movement of approximately 2,000 yards of material. At the time the Stop Work Notice was issued, 2,000 yards of material had not been moved. A large portion of the material moved was placed on the property by Don Davis prior to being purchased. He reiterated that his client did not believe a permit was necessary to move the stockpiled material. Don D. Davis, previous owner of the property in question, stated that approximately 1,000 to 1,200 yards of material from seven swimming pools, and excavation from three lots was stockpiled on lots 3 and 4. He did not believe that Mr. Gunlogson had previously been cited for any type of violation associated with compaction or grading of this magnitude. He opined that the calculations are very hard to determine, and the $5,000 fine was too stringent. In response to Council Member P. Anderson, Mr. Curtis explained that the City does issue stockpiling permits under the grading ordinance. He indicated that the City's primary concern is erosion control and drainage problems, rather than the amount of material. Ramon Velarde stated that when he moved into the residence on lot 35, lots 34 and 36 were relatively level with his lot. The excavation on lot 34 resulted in an almost perpendicular bank approximately five feet in depth. Mr. Velarde conveyed that Karen Scarbrough approached Mr. Gunlogson concerning the bank and he indicated that the bank would not cause any erosion. She then spoke with the Public Works Department, as well as the Planning Commission, who indicated that the bank should have a 2:1 slope. Mr. Velarde indicated that he dug a ditch at his own expense and filled it with gravel; however, he believed that he would still have drainage problems during the winter months. Todd Van Vokal, resident of Lot 33, provided pictures depicting the lots as follows: 1) prior to the stockpile being removed; 2) prior to Mr. Gunlogson beginning excavation; and 3) after grading and excavation were completed. He indicated that his purpose was not to justify the fine, but merely assist in clarifying what had occurred on the property. He stated that he has unresolved fence problems which occurred as a result of the digging on the adjoining lot. 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 opined that if material is moved in contravention to the City's ordinance, the argument is not whether it needs to be paid, but who is responsible for paying. MOTION: Made by Council Member Murray, seconded by Council Member Kehoe, to deny the appeal of fine for grading violations at 3485, 3490, 3497, 3509, 3520, 3533 and 3570 Old Lantern Drive and 3560 First Cabin Court by Mark Gunlogson (Gunner/Clermont, Inc.) and uphold the $5,000 fine. The Vote: Unanimous Ayes At the hour of 8:55 p.m., Mayor R. Anderson declared the meeting recessed. At the hour of 9:05 p.m., Mayor R. Anderson reconvened the meeting to regular session. ENTERPRISE COMMUNITY PARK - Roller Hockey Facility 10 11/01/94 (P-050-145 & R-006) Director of Recreation and Parks Riley recalled that the City Council, at its meeting of March 1, 1994, authorized $2,750,000 for the construction of Enterprise Community Park. Phase I of the project prepared the park area for Project Playground and included the widening of Victor Avenue, infrastructure, roads, parking lots and grading. He explained that Phase II of the project is currently being designed and should be ready for bid by January 30, 1995. Mr. Riley explained that the Recreation and Parks Commission, at its meeting of October 19, 1994, discussed a request to construct a roller hockey facility in an area near the proposed tennis and basketball courts. If the facility were constructed, the administration of the roller hockey activity and league play would be administered by a nonprofit organization similar to Redding Youth Baseball, Pop Warner Football, and Men's Slow Pitch Softball. He indicated that the Recreation and Parks Department would not sponsor or supervise roller hockey activities; however, the facility would also be there unsupervised when the roller hockey organization was not utilizing it. The Risk Manager advised that the proposed facility would require signage indicating proper equipment is required for those individuals utilizing the facility. The organization administering the activity would also be required to have adequate insurance covering the City for any injuries that may occur as a result of using the facility. Mr. Riley stated that the Commission determined that due to the size of the facility, if the activity declined in popularity, the concrete roller hockey surface could easily be converted to outdoor basketball courts, thereby saving the investment of a concrete surface. The area being considered was originally scheduled for turf and irrigation. Staff has determined the cost of landscaping turf and irrigation versus concrete is almost identical. Mr. Riley added that approximately 500 individuals are involved in roller hockey in the City of Redding and utilize any paved surfaces, including the City's tennis courts. It is the recommendation of both the Commission and staff that the City Council direct staff to coordinate the design of a roller hockey facility with the landscape architect in the design of Enterprise Community Park Phase II. Noble Streeter, 4055 Travona Street, stated that roller hockey is a superb program which promotes team spirit and develops skill and self esteem. Roller hockey provides an alternate form of recreation for the community's youth. He explained that the construction of such a facility would permit roller hockey tournaments, thereby providing an economic boost for the community. John Hallick, President of the Shasta Roller Hockey League, explained that the construction of a roller hockey facility would provide a safe playing environment for youth, as it is a growing sport. Within a year and a half, the Shasta Roller Hockey League has been rated third in the State. He encouraged the City Council's approval of a roller hockey facility. In response to Council Member Kehoe, Mr. Riley related that staff has been exploring the possibility of a roller hockey facility due to the number of roller hockey participants utilizing the City's tennis courts. Staff, therefore, believes the request to construct a roller hockey facility is viable. Council Member Kehoe stressed the importance of being proactive in planning facilities such as the Enterprise Community Park. In response to Council Member Kehoe, City Attorney Hays explained that as long as the City properly maintains the facility and does not create a dangerous condition with regard to the public property, the utilization of the facility does not represent a high-risk circumstance. MOTION: Made by Council Member P. Anderson, seconded by Council Member McGeorge, to direct staff to incorporate the construction of a roller hockey facility in Phase II of the Enterprise Community Park. The Vote: Unanimous Ayes FEDERAL CRIME BILL GRANT 11 11/01/94 (G-100-070 & P-150-150) Police Chief Blankenship related that staff has been closely monitoring the Federal Crime Bill which promises to provide funding for law enforcement officers. The Department of Justice recently notified the City of a new program called "Cops Ahead" which accelerates the hiring of such officers under the bill. Chief Blankenship stated that under the program, agencies may apply for funding for officers up to a maximum of three percent over actual October 1, 1994, force levels. In the case of the City of Redding, this equates to a total of three sworn positions. The grant funds cannot be used to supplant budget appropriations and requires a 25 percent match by the City. He explained that in order to be eligible for the grant, a Letter of Intent must be submitted to the Department of Justice no later than November 10, 1994. The City will be notified within 10 days whether funding will be received and, if so, at what level. At the time funding is confirmed, a formal grant application will be distributed. If the City is successful in obtaining the funding, it will remain eligible for other grants under the Crime Bill in upcoming years. It is the recommendation of staff that the City Council authorize staff to prepare the necessary Letter of Intent to seek funding for three sworn positions under the "Cops Ahead" Program. Council Member Kehoe questioned the fiscal impact of the grant with regard to the City's budget. Chief Blankenship replied that the City would be required to provide a 25 percent match the first year ($41,250), 50 percent the second year ($82,500), 75 percent the third year ($123,750), and 100 percent the fourth year ($165,000). He stated that if the grant were approved and the three officers were hired effective January 1995, the cost for the remainder of this fiscal year would be $20,500. These officers would be utilized to augment the City's community policing effort. Council Member P. Anderson questioned the City's source of funding for this grant request. Chief Blankenship recommended that the City Council consider utilizing General Fund reserves. Interim City Manager McMurry stated that staff would look to the City's General Fund reserves this fiscal year as the funding source. In successive years, however, the funds would be considered a General Fund cost and included as part of the budgeting process. He recommended that the City Council consider these three sworn positions as ongoing, but noted that the City is not required to maintain the positions beyond the three-year funding cycle. In response to Council Member P. Anderson, Chief Blankenship stated that the Police Department will continue to increase female and ethnic backgrounds in the department. He related that staff is attempting to meet the November 10, 1994, deadline, however, funding is on a first-come-first-serve basis and he would notify the City Council of any significant change to the funding proposal. He indicated that three additional officers would not require the acquisition of another vehicle and there is probably sufficient reserve equipment available this fiscal year for the three individuals. Council Member P. Anderson asked whether all of the Proposition 172 funds had been allocated. While he believed most of the funds had been allocated, Interim City Manager McMurry stated that staff would research the matter and provide a report back to the City Council. MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, to direct the Police Department to prepare the necessary Letter of Intent to seek funding for three sworn positions under the "Cops Ahead" Program. The Vote: Unanimous Ayes COMMUNITY DEVELOPMENT ADVISORY COMMITTEE APPOINTMENT (B-080-600-100) MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, to appoint Commissioner Kelly Combs to serve as the Planning 12 11/01/94 Commission's representative to the Community Development Advisory Committee for a term expiring December 1, 1996. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, and R. Anderson Noes: Council Members - None Absent: Council Members - Murray ORDINANCE NO. 2098 - Rezoning Application RZ-7-94 by Jim Graves and the City of Redding (1397 Buenaventura Boulevard) (L-010-230) MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, that the full reading of Ordinance No. 2098 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. 2098 be adopted, an ordinance of the City Council of the City of Redding amending Section 18.06.020 of the Redding Municipal Code relating to the rezoning of certain real property in the City of Redding to "CO-B40-F" Commercial Office District with site plan review criteria (RZ-7- 94). Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, and R. Anderson Noes: Council Members - None Absent: Council Members - Murray Ordinance No. 2098 is on file in the office of the City Clerk. RESOLUTION - Appropriating Funds for Debt Service Associated with SHASCOM Facility * (B-130-070 & D-050-200 & C-175-825-100) Director of Finance Downing related that the City of Redding issued $2,195,816 in lease revenue bonds in fiscal year 1993-94 to finance the construction of the new SHASCOM facility. The debt service associated with these bonds, which will begin in December, will total approximately $131,420 in fiscal year 1994-95. The County of Shasta's and the City of Anderson's share of the debt service for fiscal year 1994-95 totals approximately $59,140 and $13,140, respectively. The City of Redding's share of the debt service totals approximately $59,140. Ms. Downing explained that the City of Redding's 1994-95 Annual Budget did not include an appropriation for this debt service, nor did it reflect the revenue which will be received from the County of Shasta and the City of Anderson. It is, therefore, recommended that the City Council adopt the necessary resolution appropriating $131,420 for the debt service and authorize the receipt of approximately $72,280 in revenue from the County of Shasta and the City of Anderson. Council Member P. Anderson asked the following questions: 1) Why was the debt service not included in the 1994-95 budget; and 2) Why are the monies being allocated from the Unappropriated General Fund Reserve, as opposed to using the $745,000+ shown in the Treasurer's Report for SHASCOM. Ms. Downing stated that the SHASCOM facility debt was inadvertently overlooked during the budget process. The $745,680.24 referred to in the Treasurer's Report as 1993 Capital Improvement-SHASCOM is being held by the Trustee and most of the monies are not available at this time to be used for debt service. She believed the SHASCOM Board is determining whether there are other capital needs where the excess bond financing could be allocated. If the monies were utilized for debt service, it would have to be paid on a proportionate basis. She explained that the debt service reserve is held by the Trustee for the life of the debt and is utilized in the event of default. In response to Council Member McGeorge, Mayor R. Anderson stated that the SHASCOM Board, at its last meeting, voted to change the City of Anderson's ratio from 10 percent to 5 percent, with the City of Redding and the County of Shasta each picking up 2.5 percent. The 5 percent allocation is based on the City of Anderson's presentation which depicted its population at 5 percent of all the entities and 5 percent of the assessed valuation. He stressed that all parties to the Joint Powers Agreement would be required to approve such an amendment. 13 11/01/94 MOTION: Made by Council Member P. Anderson, seconded by Council Member Kehoe, that Resolution No. 94-317 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 21st amendment to City Budget Resolution No. 94-199 (1) appropriating $131,420 for debt service related to the SHASCOM facility and (2) authorizing the receipt of $72,280 in revenue from the County of Shasta and the City of Anderson. 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. 94-317 is on file in the office of the City Clerk. MONTHLY FINANCIAL REPORT - September 1994 (B-130-070) Budget Services Officer Starman provided an overview of the Report to City Council dated October 25, 1994, incorporated herein by reference, detailing the September 1994 Monthly Financial Report. In response to Council Member Murray, Director of Finance Downing related that the receipt of Proposition 172 funds is approximately three to four months in arrears. She explained that the City receives no interest on the past due monies. Shasta County Auditor-Controller Davis has, however, agreed to remit these payments in a more timely manner. Mr. Starman indicated that the State Board of Equalization distributes sales tax money to the County on a monthly basis; however, he was not aware of any requirement whereby the County is also ordered to disburse the monies on a monthly basis. Council Member Kehoe requested staff to prepare a report outlining the City's options with regard to the late receipt of Proposition 172 funds. It was the consensus of the City Council that the Monthly Financial Report should remain on the Regular Calendar portion of the agenda. MOTION: Made by Council Member P. Anderson, seconded by Council Member Kehoe, to accept the Monthly Financial Report for September 1994. The Vote: Unanimous Ayes ORDINANCE - re Amendment to Chapter 18.49 of the Redding Municipal Code concerning Home Occupations (L-010-500-050) Director of Planning and Community Development Perry recalled that the City Council, at its meeting of October 18, 1994, directed staff to prepare an ordinance to amend the Home Occupation Ordinance based on the recommendation of the Planning Commission which creates two classes within the Home Occupation Permit process: Group 1 which receives same day permits and Group 2 which follows current City practice. It is the recommendation of staff that the City Council ratify the Negative Declaration and offer the ordinance for first reading. MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, that the City Council make the following findings regarding the amendment to Chapter 18.49 of the Redding Municipal Code, Home Occupations: 1. Project is compatible with the Redding General Plan; 2. Project will not significantly alter existing land form; 3. Project is compatible with surrounding land use; 4. Project is compatible with the Code of the City of Redding, California; and ratify the Negative Declaration authorized by the Planning Commission on August 23, 1994. Voting was as follows: Ayes: Council Members - P. Anderson, Kehoe, McGeorge, and R. Anderson Noes: Council Members - Murray Absent: Council Members - None Council Member Kehoe offered Ordinance No. 2099 for first reading, an ordinance of the City Council of the City of Redding amending Redding 14 11/01/94 Municipal Code Title 18, Zoning, by repealing Chapter 18.49 and adding a new Chapter 18.49 entitled Home Occupations. OFFER TO EXCHANGE PROPERTY - by Grant Amen (C-070-010 & C-070-200) Director of Planning and Community Development Perry stated that the City received a letter from Grant Amen offering to exchange an .86-acre parcel of property he owns on Westside Road for 2 acres of City property along the Sacramento River in south Redding. Mr. Perry related that the property Mr. Amen wishes to trade to the City is located on the northwest corner of Branstetter Lane and Westside Road. A portion of the parcel is necessary for the future alignment of Westside Road to allow for adequate stacking distances at Branstetter Lane and State Route 273. The property which Mr. Amen wishes to acquire fronts the Sacramento River and was acquired in 1963 for the Clear Creek Wastewater Treatment Facility. Mr. Amen's stated interest in the City property is for residential development. Mr. Perry recommended that if the City Council is interested in seeking an exchange for the Westside Road property, staff should be directed to clarify several issues with Mr. Amen. He noted that the City Council may want to refer the property to the Redding Redevelopment Agency for possible acquisition before the property becomes developed. From staff's perspective, a purchase would be preferable to a trade. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, to decline Grant Amen's offer to exchange property at the northwest corner of Branstetter Lane and Westside Road for City property acquired for the Clear Creek Wastewater Treatment Facility and refer said offer to the Redding Redevelopment Agency. The Vote: Unanimous Ayes REGULATION OF CABLE RATES (T-040-050) Director of Planning and Community Development Perry recalled that the City Council previously elected not to exercise its option to regulate basic cable rates with the understanding that Viacom would provide the City a 45-day notice of any rate increase. To that end, a letter was received from Viacom notifying the City of its intent to raise both basic tier and cable programming effective December 15, 1994. The increases are to pass through inflation, programming, cost increases, and a Federal Communications Commission charge of $0.37 per year or $0.03 per month. It is the recommendation of staff that the City Council not exercise its option to regulate basic rates at this time subject to a continuing practice of a 45-day notice prior to any future rate increase. MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, that the City not exercise its option to regulate basic cable rates at this time subject to a continuing practice of a 45-day notice prior to any future rate increases. The Vote: Unanimous Ayes AWARD OF BID - Bid Schedule No. 2839, Installation of a Second 115/12kV Transformer at Airport Substation RESOLUTION - Approving Project Change Orders (B-050-020 & E-090-140-050) Electric Utility Director Lindley stated that projections indicate that prior to the 1996 summer peak, the Airport 115/12.47kV Substation will need to be expanded in order to continue to provide reliable City electric service to southeast Redding, including the Redding Municipal Airport and businesses along Airport Road. Mr. Lindley indicated that bids for the construction contract for the installation of a second 115/12kV power transformer at the Airport Substation were opened on October 19, 1994. The low bid was received from Cal Electro Inc. of Redding in the amount of $442,071. He explained that Cal Electro Inc. has provided the City a very attractive price for the subject work that, on the surface, may appear low. However, Cal Electro Inc. has previously performed similar substation construction work for the City and is familiar with the difficulties involved. 15 11/01/94 It is the recommendation of staff that the City Council: 1) Award a contract to Cal Electro Inc. in the amount of $442,071 for the installation of a second 115/12kV transformer at the Airport Substation; 2) Authorize the Mayor to sign a standard City of Redding Public Works Agreement; and 3) Approve a resolution authorizing the City Manager to approve project change orders up to an aggregate not-to-exceed total of $50,000. Funds for this project are included in the 1993 Electric System Project Financing Program, Job Order No. 9344-15. Council Member Kehoe questioned the significant discrepancy between the bid proposals received, the engineer's estimate and Cal Electro Inc.'s bid price. Mr. Lindley indicated that staff contacted Cal Electro Inc. and has been assured that the project can be completed according to the bid submitted and Cal Electro Inc. is willing to honor the bid. Mr. Lindley provided the City Council with a summary of substation contracts previously awarded to Cal Electro Inc., as well as a Summary of Costs of Electric Department Public Works contracts awarded from 1984 to present. He noted that Cal Electro Inc. may be using this project to ensure work for its employees and there is nothing to suggest that Cal Electro Inc. cannot complete the project for the bid price. In response to Council Member Murray, Mr. Lindley stated that the contract is principally to provide labor, as most of the large items have been purchased or are on order. Cal Electro Inc. will be required to provide some items which are available on the market from various vendors. In response to Council Member Kehoe, Mr. Lindley conveyed that bids such as this do not normally leave such a large amount of money on the table. There are instances, however, where contractors essentially buy the project to ensure work for their firm. MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, to award Bid Schedule No. 2839, installation of a second 115/12kV transformer at the Airport Substation, to Cal Electro Inc. in the amount of $442,071 and authorize the Mayor to sign a standard City of Redding Public Works Agreement for said bid. The Vote: Unanimous Ayes MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, that Resolution No. 94-318 be adopted, a resolution of the City Council of the City of Redding authorizing the City Manager to sign Project Change Orders up to an aggregate not to exceed $50,000 on the Public Works Contract between the City of Redding and Cal Electro Inc. for the installation of a second 115/12kV transformer at the Airport Substation. 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. 94-318 is on file in the office of the City Clerk. REMOVAL OF LIQUIDAMBAR TREES - Request by Carmona's Appliance Center (905 Mistletoe Lane) (A-050-220-075) Director of Recreation and Parks Riley stated that a letter was received from Terry Alvord of Carmona's Appliance Center requesting the City to drastically trim or remove the two large liquidambar trees located in front of a leased building located at 905 Mistletoe Lane. Mr. Riley explained that the Recreation and Parks Commission observed the two large trees and related photos. The Commission understood and sympathized with Mr. Alvord regarding the perceived negative impact the trees created; however, the Commission felt obligated to uphold the City Council's established policy regarding the removal of healthy street trees. He explained that the liquidambar trees cannot withstand severe topping or pruning. Mr. Riley conveyed that Carmona's Appliance Center is now appealing the Commission's recommendation to the City Council. He indicated that the trees 16 11/01/94 cannot withstand severe topping or pruning and otherwise survive and thrive in a healthy manner. It is the recommendation of the Recreation and Parks Commission and staff that the City Council support the Commission's recommendation and deny the appeal by Carmona's Appliance Center to remove the trees. Terry Alvord stated that Carmona's Appliance Center recently signed a long- term lease for the building located at 905 Mistletoe Lane. He indicated there is a sign standard located in front of the building; however, it is only visible to vehicles traveling east on Mistletoe Lane due to the two trees located directly in front of the building. He requested that the City Council overturn the Parks and Recreation Commission's decision and allow the removal of the two trees. In response to Council Member P. Anderson, Mr. Alvord stated that at the time the building was leased, he was not aware that the trees completely blocked the sign. Council Member Murray stated that he visited the location and found that the only area the sign was not visible was traveling south bound on Churn Creek and making a left turn onto Mistletoe. He questioned whether a sign could be placed on the building. Director of Planning and Community Development Perry indicated that he would need to do further research to determine if a sign would be permissible on the building. Based on discussions with the Planning Department, Mr. Alvord noted that the sign has been grandfathered in and exceeds current City standards. Council Member Murray asked whether the sign could be moved on site without changing its size. Mr. Alvord stated that it might be possible to move the sign, but he did not know if the costs would be too prohibitive. He indicated that it will cost approximately $7,500 just to cover the sign. He explained that he would be willing to replant lower growing trees or shrubs to permit full visibility of the sign. Vi Klassen, 2295 Oakridge Drive, supported the Parks and Recreation Commission's recommendation. She noted that these are the only trees on more than half that long block between Churn Creek Road and Hilltop Drive. She stressed that the trees located on the south side of the street provide shade and stressed the importance of their preservation. She urged the City Council to uphold the Commission's recommendation and deny the removal of the trees. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, to uphold the Recreation and Parks Commission's recommendation to deny drastically pruning or removing two Liquidambar trees at 905 Mistletoe Lane. The Vote: Unanimous Ayes RESOLUTION - re Amendment to Contract with Auburn Constructors for the Construction of the Buckeye Water Treatment Plant (Bid Schedule No. 2731) by Authorizing Contract Change Order 031 (B-050-020 & W-030-600) Assistant City Engineer Curtis related that Auburn Constructors has substantially completed the construction of the Buckeye Water Treatment Plant and is requesting a reduction of the 10 percent retention of funds required by the contract to 5 percent, as allowed by Section 9203 of the Public Contract Code. Due to unforeseen delays in the Buckeye Water Treatment Plant instrumentation and distributed contract and the Buckeye Water transmission main contract, Auburn Constructors could potentially file delay claims against the City for not being able to complete its final testing. Items remaining to be completed on the contract amount to less than $75,000. It is the recommendation of staff that the City Council adopt the necessary resolution approving Auburn Constructor's request to reduce the retention of funds from 10 percent to 5 percent. With this reduction, Auburn Constructors agrees not to file a claim for delay damages against the City of Redding. MOTION: Made by Council Member P. Anderson, seconded by Council Member Kehoe, that Resolution No. 94-319 be adopted, a resolution of the City 17 11/01/94 Council of the City of Redding approving an amendment to the contract between the City of Redding and Auburn Constructors for the construction of the Buckeye Water Treatment Plant by authorizing Contract Change Order Number 031 allowing for the reduction of retention funds from 10 percent to 5 percent, and authorizing the Interim City Manager 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. 94-319 is on file in the office of the City Clerk. AWARD OF BID - Bid Schedule No. 2887, Redding Municipal Airport/United States Forest Service North Trunk Line (B-050-020 & W-020-575) Council Members Kehoe and McGeorge abstained from discussion and voting on this matter. Assistant City Engineer Curtis related that the United States Forest Service (USFS) and the City have jointly made plans to install a sewer line from the USFS facility to the Clover Creek trunk line via Devere Road. The USFS will fund this line at a size adequate to handle their needs. The City will upsize the line to handle anticipated City needs and fund the upsizing. The USFS has agreed to pay up to $233,340 for its share of the project, and the City's share for upsizing is $30,000. An agreement was signed in August 1994 providing for reimbursement to the City for the USFS's share of the cost of the project. Sufficient funds are available in the Wastewater Utility's budget for the City's share of the project. Bid Schedule No. 2887 was opened on October 11, 1994, with the low bid being received from Charles McKinney in the amount of $171,671.50. It is the recommendation of staff that the City Council award Bid Schedule No. 2887 to Charles McKinney in the amount of $171,671.50, approve an additional $19,130 to cover the cost of engineering and inspection fees, $17,198.50 to cover the cost of contract change orders, and $18,000 to cover the cost of right-of-way acquisition, for a total of $226,000. It is further recommended that the City Council ratify the Negative Declaration. MOTION: Made by Council Member Murray, seconded by Council Member P. Anderson, that the City Council make the following findings regarding ED-4- 94: 1. Project is compatible with the Redding General Plan; 2. Project will not significantly alter existing land form; 3. Project is compatible with surrounding land use; 4. Project is compatible with the Code of the City of Redding, California; and ratify the Negative Declaration authorized by the Board of Administrative Review on August 10, 1994. Voting was as follows: Ayes: Council Members - P. Anderson, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Kehoe and McGeorge MOTION: Made by Council Member Murray, seconded by Council Member P. Anderson, to award Bid Schedule No. 2887 (Job No. 2047), Redding Municipal Airport/USFS North Trunk Line, to Charles McKinney in the amount of $171,671.50, approve an additional $19,130 to cover the cost of engineering and inspection fees, $17,198.50 to cover the cost of contract change orders, and $18,000 to cover the cost of right-of-way acquisition, for a total of $226,000. Voting was as follows: Ayes: Council Members - P. Anderson, Murray and R. Anderson Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - Kehoe and McGeorge PUBLIC COMMENT (W-030-500) Joe Murphy, Redding Rancheria, expressed appreciation to the City for providing an emergency water connection so quickly and efficiently. He 18 11/01/94 stated that the tribe is working with City of Redding Planning Director Phil Perry to develop an agreement for water service and supports the 60-day extension. He noted, however, that if an agreement is not reached, the environmental assessment for the tribe's proposed Head Start Program will contain a finding that there is not a reliable water source for the facility. He stressed that staff is working to meet the original 120-day commitment. ADJOURNMENT There being no further business, at the hour of 10:27 p.m., Mayor Anderson declared the meeting adjourned to 8:00 a.m., November 5, 1994, at the City Council Chambers, 1313 California Street, to hold a Closed Session pursuant to Government Code Section 54957 to interview candidates for the position of City Manager. APPROVED: Mayor ATTEST: City Clerk