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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1995-11-07 City Council, Regular Meeting City Council Chambers 1313 California Street Redding, California November 7, 1995 7:00 p.m. The Pledge of Allegiance to the Flag was led by Clay McClain. The Invocation was offered by Pastor Richard Sigrist, St. Lukes Episcopal Church. The meeting was called to order by Mayor Kehoe with the following Council Members present: P. Anderson, R. Anderson, McGeorge, Murray and Kehoe. Also present were City Manager Warren, Assistant City Manager Perry, Director of Administrative Services Starman, Director of Public Works Galusha, Acting Planning Director Keaney, Director of Electric Utility Lindley, Chief of Police Blankenship, Fire Chief Wagner, Assistant City Attorney Calkins, Director of Community Services Gorman, Public Works Operation Manager Russell, Director of Utilities/Customer Service Vokal, Assistant Director - General Services Kohn, Electric Utility Rates & Economics Analyst Graves, Management Assistant to the City Manager Bachman, Senior Planner King, Resource Recovery Manager Roach, City Clerk Strohmayer, and Secretary to the City Council Rudolph. CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Minutes - Adjourned Regular Meeting of October 16, 1995; Regular Meeting of October 17, 1995; and Special Meeting of October 25, 1995 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 8, for the period October 17, 1995, through October 31, 1995, check numbers 225522 through 226203 inclusive, in the amount of $3,796,621.36, and Payroll Register No. 9, check numbers 408007 through 408739 inclusive, and electronic deposit transaction numbers 26326 through 26549, totaling $1,272,024.43, for the period October 8, 1995, through October 21, 1995, be approved. TOTAL: $5,068,645.79 Treasurer's Report - September 1995 (A-050-100-600) Total Treasurer's Accountability - $ 70,276,296.34 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities - $200,795,473.23 ACR113 Report and Cash Reconciliation (F-205-095-650) It is the recommendation of the Finance Officer that the ACR113 Report and Cash Reconciliation for September 30, 1995, be accepted. Ordinance No. 2138 - Amending Redding Municipal Code Chapter 18.53.030(a)(3) re Adult Entertainment (L-010-220) It is recommended that Ordinance No. 2138 be adopted, an ordinance of the City Council of the City of Redding amending a code reference in Redding Municipal Code Section 18.53.030, Adult Entertainment, specifically 18.53.030(a)(3) to reflect that it is not subject to Redding Municipal Code Section 18.70.060. Decline Offer to Purchase Property - North side of Highway 44 between Old Oregon Trail and Shasta View Drive (C-070-010) It is the recommendation of the Assistant City Manager that the City Council defer consideration of Nolan Brewer's offer to sell the City his property located on the north side of Highway 44 between Old Oregon Trail and Shasta View Drive until such time as the General Plan update determines whether or not the area should be assembled for public ownership. Property Status Report (C-070) It is the recommendation of the Assistant City Manager that the City Council accept the Property Status Report as of October 24, 1995, covering the following areas: surplus City property; offers to sell land to the City; City initiated purchases of land; and leases of City land. Resolution - Approving CDBG Funding Agreement with Northern Valley Catholic Social Services for the Family Preservation and Family Support Program (G-100-030-040) It is the recommendation of the Assistant City Manager that Resolution No. 95-238 be adopted, a resolution of the City Council of the City of Redding approving the Community Development Funding agreement, in the amount of $28,354.00, for the period December 1, 1995, through November 30, 1996, between the City of Redding and the Northern Valley Catholic Social Service for the Family Preservation and Family Support Program, and authorizing the City Manager to sign same. Potential City-Owned Surplus Property (C-070 & C-070-200) It is the recommendation of the Civic Center Subcommittee that the City Council direct staff to commence proceedings to identify surplus City-owned properties, as depicted in the Report to City Council dated November 2, 1995, incorporated herein by reference, and review the potential for lot splits, General Plan Amendments or rezonings. Resolution - re Purchase and Installation of Digital Voice Privacy in Police Radios (B-050-100 & P-150-150) It is the recommendation of the Director of Administrative Services that Resolution No. 95-239 be adopted, a resolution of the City Council of the City of Redding authorizing the purchase and installation of software and hardware to upgrade the police mobile radios with Motorola Digital Voice Privacy Equipment from Valley Industrial Communications, Inc. in an amount not to exceed $30,000. Funds for this purchase are provided for in the fiscal year 1995-96 budget. Transaction Listing of Purchases Between $5,000-$25,000 - Third Quarter 1995 (B-050-100) It is the recommendation of the Director of Administrative Services that the City Council accept the Transaction Listing Report for Third Quarter 1995 listing items between $5,000 and $25,000 approved by the City Manager. Resolution - Amending Memorandum of Understanding with REO/SEIU Clerical, Technical, and Professional Employees' Unit Adding Classifications of Janitor and Cross-Connection Control Specialist Resolution - Amending Executive Management Pay-For-Performance Salary Plan Schedules Deleting the Classification of Cross-Connection Control Specialist Resolution - Amending Schedules of Part-Time Employee Classifications for Unrepresented Employees Deleting the Classification of Janitor (P-100-050-124 & P-100-320) It is the recommendation of the Director of Administrative Services that Resolution No. 95-240 be adopted, a resolution of the City Council of the City of Redding amending Exhibits A-3 and B-3 to the Redding Employees Organization of the Service Employees International Unit Clerical, Technical, and Professional Employees' Unit, effective November 5, 1995, by adding the classification of "Janitor" to Exhibit A-3, and the classification of "Cross-Connection Control Specialist" to Exhibit B-3. It is also recommended that Resolution No. 95-241 be adopted, a resolution of the City Council of the City of Redding amending the Executive Management Pay-for-Performance Salary Plan Schedules for Unrepresented Employees, effective November 5, 1995, and June 30, 1996, by deleting the classification of "Cross-Connection Control Specialist." It is further recommended that Resolution No. 95-242 be adopted, a resolution of the City Council of the City of Redding amending the Schedules of Part-Time Employee Classifications and Wage Rates/Ranges for Unrepresented Employees, effective November 5, 1995, and June 30, 1996, by deleting the classification of "Janitor." Resolution - Approving Revision of City Council Risk Management Policy (A-050-060-555 & R-100) It is the recommendation of the Director of Administrative Services that Resolution No. 95-243 be adopted, a resolution of the City Council of the City of Redding amending Risk Management Policy No. 203 to reflect the current responsibilities and practices of the Risk Management Office and to revise claims settlement authority. Award of Bid - Bid Schedule No. 2960, Computer Equipment (B-050-100 & A-070-090) It is the recommendation of the Director of Administrative Services that Bid Schedule No. 2960, computer equipment, be awarded to the second low bidder, H.Q. Computers, in the amount of $103,125.16. The low bidder, Ross Computers, subsequently withdrew their bid. Funds for this purchase are available in the 1995-96 budget. Set Public Hearing - re Rezoning Application RZ-5-95, by Signature Northwest (River Meadows Estates Subdivision) (L-010-230 & S-101-015) It is the recommendation of the Acting Planning Director that a public hearing be set for 7:00 p.m., December 5, 1995, to consider the request to rezone property located within the River Meadows Estates Subdivision from "U-FP" Unclassified with a Floodplain Combining District to "R1- B20" Single-Family Residential District. Resolution - Initiating Abatement Proceedings at 3529 Court Street, owned by Ina V.M. Stower and Elaine Moore (A-030-070) It is the recommendation of the Acting Planning Director that Resolution No. 95-244 be adopted, a resolution of the City Council of the City of Redding to begin legal proceedings of abatement on the real property located at 3529 Court Street, owned by Ina V.M. Stower and Elaine Moore. Set Public Hearing - re Rezoning Application RZ-11-95, by Joseph Burgaletta the and City of Redding (1410-1464 Victor Avenue and 1299, 1305, and 1321 Old Alturas Road) (L-010-230) It is the recommendation of the Acting Planning Director that a public hearing be set for 7:00 p.m., December 5, 1995, to consider the request to rezone property located at 1410 through 1464 Victor Avenue and 1299, 1305, and 1321 Old Alturas Road from "U" Unclassified District and "R3- 40-B15-F" Multiple-Family Residential District with Site Plan Review Combining District to "R3-40" Multiple-Family Residential District. Resolution - Initiating Abatement Proceedings at 5574 Westside Road, owned by Jim Pierce and Chico Sprinkler, Inc. (A-030-070) It is the recommendation of the Acting Planning Director that Resolution No. 95-245 be adopted, a resolution of the City Council of the City of Redding to begin legal proceedings of abatement on the real property located at 5574 Westside Road, owned by Jim Pierce and Chico Sprinkler, Inc. Resolution - re State Licensing Requirement for After-School Adventures Program (R-006-650) It is the recommendation of the Director of Community Services that Resolution No. 95-246 be adopted, a resolution of the City Council of the City of Redding authorizing the filing of an application by the Recreation Department for a State of California Child Day Care Center License for its After School Adventures Program. Rebid Phase I of Enterprise Community Park (P-050-145) It is the recommendation of the Director of Community Services that the City Council direct staff to rebid Phase I of the Enterprise Community Park as outlined in the Report to City Council dated October 20, 1995, incorporated herein by reference. Transfer of Cable Television Franchise (T-040-050) It is the recommendation of the Director of Community Services that the City Council approve the transfer of control of franchise cable operations in Redding from Viacom Cable to TCIC/TCI Pacific Communications, Inc. Annual Franchise Review - Viacom Cablevision (T-040-050) It is the recommendation of the Director of Community Services that the City Council accept the 1994 Annual Franchise Review for Viacom Cablevision as depicted in the Report to City Council dated October 27, 1995, incorporated herein by reference. Award of Bid - Bid Schedule No. 2957, Two Four-Door 4x4 Vehicles (B-050-100 & P-150-070) It is the recommendation of the Fire Chief that Bid Schedule No. 2957, two four-door 4x4 vehicles, be awarded to the low bidder, Senator Ford, Sacramento, in the amount of $45,634.88, delivered. Funds for this purchase are provided for in the 1995-96 budget. Resolution - Authorizing Supplemental Appropriation for Re-Roofing Various Areas at the Police Department * (B-130-070 & C-050-550) It is the recommendation of the Police Chief that Resolution No. 95-247 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 14th amendment to City Budget Resolution No. 95-153 appropriating $7,500 to pay for the additional work needed on the roof at the Police Department. Resolution - Approving First Amendment to Sierra Pacific Industries Ground Lease at Redding Municipal Airport (C-070-100 & A-090-100) It is the recommendation of the Director of Airports that Resolution No. 95-248 be adopted, a resolution of the City Council of the City of Redding approving entering into a First Amendment to the Sierra Pacific Industries Lease at Redding Municipal Airport, thereby increasing the area of leased premises from 20,000 square feet to 22,150 square feet, and the monthly rental from $304.81 to $398.70. Resolution - re General Municipal Election of March 26, 1996 (E-070-050) It is the recommendation of the City Clerk that Resolution No. 95-249 be adopted, a resolution of the City Council of the City of Redding requesting the Shasta County Board of Supervisors to permit the County Elections Official to render special services to the City relating to the conduct of a Municipal Election to be held in Redding on March 26, 1996, in consolidation with the Statewide Direct Primary Election. Resolution Accepting Streets and Acceptance of Final Map and Improvements - Ravenwood Subdivision, Unit 9 (East of Shasta View Drive and South of Old Alturas Road) * (S-070-230 & S-100-614) It is the recommendation of the Director of Public Works that Resolution No. 95-250 be adopted, a resolution of the City Council of the City of Redding accepting for maintenance and operation Hominy Way, Dewberry Drive, and Trumpet Drive in Unit 9 of the Ravenwood Estates Subdivision. It is also recommended that the improvements in Ravenwood Subdivision, Unit 9, developed by Donald Lynn, be accepted as satisfactorily completed and the City Clerk be instructed to file the Map with the Shasta County Recorder. Status Report - re United States Bureau of Reclamation Water Contracts Renewal Options (W-030) It is the recommendation of the Director of Public Works that the City Council accept the status report regarding the United States Bureau of Reclamation water contracts renewal options as outlined in the Report to City Council dated October 27, 1995, incorporated herein by reference. Notice of Completion - Bid Schedule No. 2839, Installation of Second 115/12kV Transformer Bank at Airport Substation (B-050-020 & E-090-140-050) It is the recommendation of the Director of Public Works that Bid Schedule No. 2839 (Job No. 9344-15), installation of a second 115/12kV transformer bank at the Airport Substation, awarded to Cal Electro, Inc., be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $449,790. MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. Voting was as follows: Ayes: Council Members - P. Anderson, R. Anderson, McGeorge, Murray & Kehoe Noes: Council Members - None Absent: Council Members - None Resolution Nos. 95-238, 95-239, 95-240, 95-241, 95-242, 95-243, 95-244, 95-245, 95-246, 95-247, 95-248, 95-249 and 95-250 are on file in the office of the City Clerk. - - - - - - - - - - PUBLIC HEARING - re Rezoning Application RZ-7-95, by Al Shufelberger and the City of Redding (4059, 4061, 4063, 4161, 4191, 4231, 4301, 4315, and 4375 Eastside Road) (L-010-230) The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing regarding Rezoning Application RZ-7-95. The following documents are in 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 October 17, 1995 City Clerk Strohmayer advised that no protests had been received. Acting Planning Director Keaney related that the Planning Commission, at its meetings of September 12 and 26, 1995, recommended an expansion of boundaries and approval of the rezoning of nine properties located at 4059, 4061, 4063, 4161, 4191, 4231, 4301, 4315, and 4375 Eastside Road. The property would be rezoned from "U" Unclassified District and "U-FP" Unclassified District with Floodplain Combining District to "C-3" Heavy Commercial/Light Industrial District and "C3-FP" Heavy Commercial/Light Industrial District with Floodplain Combining District. It is the recommendation of both the Planning Commission and staff that the City Council approve the rezoning as hereinabove stated. Mayor Kehoe determined there was no one present wishing to speak on the matter and closed the public hearing. MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson, that the City Council make the following findings regarding RZ-7-95: 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 September 26, 1995. The Vote: Unanimous Ayes Council Member R. Anderson offered Ordinance No. 2139 for first reading, an ordinance of the City Council of the City of Redding amending Section 18.06.020 of the Redding Municipal Code relating to the rezoning of certain real property in the City of Redding to "C-3" Heavy Commercial/Light Industrial District and "C-3-FP" Heavy Commercial/Light Industrial District with Floodplain Combining District (RZ-7-95). MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson, that the full reading of Ordinance No. 2139 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes PUBLIC HEARING - re Abandonment Application A-4-95, by the City of Redding (Canyon Road right-of-way north of its intersection with the Highway 273 Interchange) (A-010-100 & W-030-500) The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing regarding Abandonment Application A-4-95. The following documents are in 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 October 23, 1995 City Clerk Strohmayer advised that no protests had been received. Acting Planning Director Keaney provided an overview of the Report to City Council dated October 23, 1995, incorporated herein by reference, wherein the City is proposing to vacate a portion of the Canyon Road right-of-way north of its intersection with the Highway 273 interchange to the easterly terminus of Redding Rancheria Road. Mr. Keaney explained that, as part of the agreement for water service, Redding Rancheria agreed to construct street improvements to this area which included upgrading the street to commercial standards, as well as installing curb, gutter, sidewalk, and streetlights. In accordance with the agreement, if the area is found to be surplus, the right-of-way is vacated, and if the title is transferred to the Redding Rancheria within 120 days of the agreement's effective date, maintenance of what would then be a private street would be the Redding Rancheria's responsibility. It is the recommendation of both the Planning Commission and staff that the City Council ratify the Negative Declaration and adopt the necessary resolution vacating the specified portion of Canyon Road right-of-way subject to: 1) The terms and conditions of the "Services, Development, and Government-to-Government Agreement" between the City of Redding and the Tribal Council of the Redding Rancheria; and 2) Retention of a public-service easement over the entire area of abandonment. It is further recommended that the City Council declare the subject property surplus. Mayor Kehoe determined there was no one present wishing to speak on this matter and closed the public hearing. MOTION: Made by Council Member McGeorge, seconded by Council Member Murray, that the City Council make the following findings regarding A-4- 95: 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 October 10, 1995. The Vote: Unanimous Ayes MOTION: Made by Council Member McGeorge, seconded by Council Member Murray, that Resolution No. 95-251 be adopted, a resolution of the City Council of the City of Redding ordering the vacation of that portion of the Canyon Road right-of-way described in Exhibit A and shown as the "Area of Abandonment" in Exhibit B and lying adjacent to properties located at 2271, 2269, and 2228 Rancheria Road (A-4-95) and declaring said property surplus. Voting was as follows: Ayes: Council Members - P. Anderson, R. Anderson, McGeorge, Murray and Kehoe Noes: Council Members - None Absent: Council Members - None Resolution No. 95-251 is on file in the office of the City Clerk. POTENTIAL SOLUTIONS FOR NEIGHBORHOOD BLIGHT (C-110-100-400) City Manager Warren provided an overview of the Report to City Council dated October 17, 1995, incorporated herein by reference, concerning neighborhood blight. He noted that since Proposition 13 and the early 1990s, cities have less resources to dedicate to neighborhoods. He related that the City's PRIDE Program, which utilizes volunteers, has been very successful in assisting in this area. Mr. Warren explained that H. D. Christensen has requested the City's assistance in cleaning up the Irwin Road area. In response to this request, staff is recommending that this issue be discussed with both the Shasta Builders Exchange and the Board of Realtors in order to develop a program concerning absentee landowners who are not maintaining their property. H. D. Christensen, 2663 Irwin Road, presented the City Council with a packet containing information regarding the properties owned by Servillano Castillejos, lists showing responses made by the Police Department to the Irwin Road area, letters for surrounding property owners on Irwin Road, copies of Warning Notices issued by the City of Shasta Lake on Mr. Castillejos property, and an Order issued by Redding Municipal Court involving Mr. Castillejos as the plaintiff. He detailed the problems the Irwin Road neighborhood is experiencing involving Mr. Castillejos' property. He noted that a considerable amount of the rent money received by Mr. Castillejos is governmental money and a portion of that money should be utilized to upgrade his property. Mr. Christensen continued that Mr. Castillejos' apartment managers of the subject properties have cleaned up the property to the best of their ability, but the rest must be done by Mr. Castillejos. On behalf of the residents of Irwin Road, Mr. Christensen requested the City's assistance in requiring Mr. Castillejos to clean up his property on Irwin Road. He concluded by expressing appreciation to various members of City staff for the assistance they have provided to date. Council Member Murray recommended that staff investigate whether or not the tenants of these subject properties, as well as any other substandard units, are receiving rental assistance from programs administered by the City. Prior to involving outside organizations, he believed the City had legal opportunities available to it and should actively pursue them. He requested that the City Attorney prepare a report for the City Council's consideration which explained the City's legal limitations regarding its enforcement authority in matters such as this. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, to refer the matter of neighborhood blight to the City Attorney for a report back to the City Council on the City's limitations in terms of code enforcement authority. Voting was as follows: Ayes: Council Members - P. Anderson, R. Anderson, McGeorge, and Murray Noes: Council Members - Kehoe Absent: Council Members - None RESOLUTION - re Jobs Credit and Fee Deferral Payment Agreement with SECO Manufacturing Company (F-205-600) Assistant City Manager Perry provided an overview of the Report to City Council dated November 7, 1995, incorporated herein by reference, concerning SECO Manufacturing Co., Inc.'s Jobs Credit Application. He recalled that the City Council, at its August 15, 1995, meeting, determined that jobs created by SECO since the program inception in February 1994, as well as jobs to be created by the company upon completion of the expansion, could be used in the calculation of jobs credit under the City's Jobs Credit/Fee Deferral Program. Mr. Perry explained that an agreement between the City and SECO has been prepared covering the terms and conditions under which the City would give job credits to SECO. He summarized that under the agreement, SECO agrees to create a total of 72 full-time jobs in return for $72,500 in jobs credit to be applied toward development fees associated with the company's expansion. SECO's performance will be evaluated based upon its creating and maintaining at least 90 percent of the jobs, averaged over the five-year effective period of the agreement. For each year during the five-year period in which 90 percent or more of the jobs have been maintained, 20 percent of the jobs credit amount will be forgiven. Mr. Perry related that the jobs credit amount will be secured by a deed of trust recorded on the SECO facility property, which has an estimated post-development market value of $1,580,000. Because the City's lien is to be recorded subordinate to three Small Business Administration (SBA) loans, the agreement also requires a personal endorsement from Mr. Ogden, as an individual, on both the agreement and promissory note. It is the recommendation of staff that the City Council adopt the necessary resolution approving the Jobs Credit and Fee Deferral Payment Agreement with Paul C. Ogden, and SECO Manufacturing Company, Inc. Mike Wells, legal counsel for both Paul Ogden and SECO Manufacturing Company, Inc., stated that the only objection either party has to the agreement is the requirement of a personal guarantee from Mr. Ogden. Given the fact that this is the first application to be processed, Mr. Wells questioned where the City would draw the line on future applications. He cited an example of a business proposing to relocate to the City of Redding only if the personal guarantees of the principals are not required. He believed the City Council should address this question before proceeding. Given the fact that the City has the deed of trust, which secures the agreement, as well as the agreement from SECO Manufacturing, he requested that the City Council delete the requirement of a personal guarantee from Mr. Ogden, a principal stockholder of SECO. In response to Council Member Murray, Mr. Wells confirmed that the security for the note is not strictly the deed of trust, as the City has the agreement with the corporation, which is the legal obligor. Mr. Perry noted that every company which utilizes this program will be different. Given this difference, he believed that the City must consider the facts presented with each application. In this particular case, the City will be in fourth position behind three SBA loans. He cautioned that a public agency must be able to demonstrate to the public that there is a linkage between the jobs and the program, as well as the fact that the City is a good steward of the public dollar. The agreement essentially represents a loan in exchange for the creation of jobs. Council Member R. Anderson concurred that the City will need to review each request on its individual merit. In order to safeguard public funds and avoid it being viewed as a gift of public funds, the City should look for adequate security. He stated that he could not make a determination regarding the corporate security without first reviewing the corporate financial statements. He noted that he would be willing to accept a certificate of deposit, letter of credit, or bond, in lieu of the personal guarantee. Council Member Murray reiterated that it is a loan, therefore, the City owns, in addition to the deed of trust, all of the assets of the corporation. Given the fact that Mr. Ogden had to personally guarantee the SBA loans, Council Member R. Anderson could not understand Mr. Ogden's objection to guaranteeing an additional $70,000. MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson, that Resolution No. 95-252 be adopted, a resolution of the City Council of the City of Redding approving and authorizing the Mayor to execute the Jobs Credit and Fee Deferral Payment Agreement, in the amount of $72,000, between the City of Redding, Paul C. Ogden, and SECO Manufacturing Company, Inc. Voting was as follows: Ayes: Council Members - P. Anderson, R. Anderson, McGeorge, and Kehoe Noes: Council Members - Murray Absent: Council Members - None Resolution No. 95-252 is on file in the office of the City Clerk. ANIMAL PERMIT APPLICATION AP-2-95 - by Pam Lyerla (A-130-140) Acting Planning Director Keaney related that Pam Lyerla has submitted Animal Permit Application AP-2-95, requesting to keep one pony and one donkey on property located at 5654 Jubilee Street. At its meeting of October 18, 1995, the Board of Administrative Review (BAR) unanimously recommended approval of the animal permit. Mr. Keaney noted there was no opposition to the permit at the BAR meeting; however, staff has received complaints from an adjacent property owner to the west at 5716 Jubilee Street. In response to the complaints, BAR required the removal of manure not less than every seven days. It is the recommendation of staff that the City Council approve Animal Permit Application AP-2-95 for one donkey and one pony at this time with a revision to Condition 2 as follows: No more than one donkey and one pony shall be kept on the property provided, however, that when any animal dies, it shall not be replaced until the number of animals on the property is reduced to one. MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson, to approve Animal Permit Application AP-2-95, by Pam Lyerla, for one donkey and one pony at this time with the following modification to Condition No. 2: No more than one donkey and one pony shall be kept on the property provided, however, that when any animal dies, it shall not be replaced until the number of animals on the property is reduced to one. The Vote: Unanimous Ayes PUBLIC COMMENT (C-070-100 & A-090-100) J. W. Cornwell, 4600 Law Place, requested that the City consider allowing the Redding Dragstrip to be utilized on either Wednesday or Saturday nights. He stated that the track operator, Rod Thomas, has agreed to assist the racers in changing the racing days if they can obtain the City's approval. Mayor Kehoe advised Mr. Cornwell that the City Council cannot act on an item which is not listed on the agenda; however, he recommended that Mr. Cornwell speak with staff during the recess to determine what further steps need to be taken. The hour of 7:50 p.m. having arrived, Mayor Kehoe declared the meeting recessed. The hour of 8:03 p.m. having arrived, Mayor Kehoe reconvened the meeting to regular session. PUBLIC HEARING - re Proposed Electric Utility Rate Adjustment (E-090-100) The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing regarding the proposed electric utility rate adjustment. The following documents are in file in the office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Staff recommendation dated November 3, 1995 City Clerk Strohmayer advised that no protests had been received. Electric Utility Director Lindley outlined that projections reveal a 10.56 percent electric utility rate adjustment is required effective November 1, 1995; however, staff is recommending a six percent increase effective November 1, 1995. Pending the outcome of negotiations with PacifiCorp for the San Juan power, it may be necessary to request an additional increase in February 1996. Electric Utility Rates and Economics Analyst Graves made a viewgraph presentation outlining the reasons/justifications for an electric utility rate adjustment effective November 1, 1995. (Copies of the viewgraph presentation are incorporated herein by reference in the Report to City Council dated November 3, 1995.) He explained the reasons why an additional rate increase may be necessary in February 1996 if the agreement with PacifiCorp for San Juan power cannot be consummated. He related that one of the reasons the City is experiencing problems associated with the San Juan power arrangement is the fact that oil is not the projected $80 per barrel, but $17 to $18. He conveyed that the impact on the budget based on today's facts versus earlier expectations for San Juan and hydroelectric projects is $3.8 million per year. Mr. Graves summarized that staff is recommending that the City Council adopt a six percent rate increase effective November 1, 1995, and a preliminary 5.5 percent fiscal year 1997 increase for planning purposes, and direct staff to return in February 1996 for an additional rate increase if necessary. Frank Strazzarino, Jr., Executive Director of the Greater Redding Chamber of Commerce, related that the Electric Utility Department made a similar presentation to the Chamber's Government Relations Committee. The Committee was concerned about the proposed increase and requested additional time to gather information regarding the potential impact the proposed increase will have on its membership before making a presentation to the City Council. Frances Jenkins, 2652 Sharon Street, compared her City of Redding electric utility bill from 1978 in the amount of $44.79 for 2,200 kilowatt hours, to her current billing in the amount of $62.20 for 838 kilowatt hours. She stressed that when she first built her residence, electric rates were so low that the builder recommended installing electric heat. She stated that she has since changed to wood heat. She suggested that the City Council defer action on this matter and give careful consideration to the proposed rate increase. She emphasized that while PG&E rates are higher, they pay dividends to their stockholders. The City of Redding ratepayers' dividends are supposed to be reflected in lower rates. She questioned how PG&E's percentage of increase for the past 15 years compares to the City of Redding for the same period. In response to Council Member Murray, Mr. Graves stated that he could not respond this evening as to the percentage of increase PG&E has experienced the past 15 years. He related, however, that the City's typical residential customer utilizing approximately 1,000 kilowatt hours per month has experienced approximately a 263 percent increase in their electric utility rate. He attributed this increase to the following: 1) 150 percent to Western Area Power Administration costs; 2) 60 percent to inflation; and 3) 53 percent to growing into a full- service utility. He emphasized that the City of Redding still has one of the lowest electric utility rates in California among the municipally-owned utility companies. He also confirmed that a delay in adopting the rate adjustment will result in an even higher rate adjustment. Council Member Murray opined that the City Council does not have a choice but to adopt the recommended rate adjustment of 6 percent effective November 1, 1995. He noted that two of the major reasons for supporting staff's recommendation is the fact that the City is currently negotiating with PacifiCorp on the San Juan power, as well as the New York bond underwriters for the M-S-R refinancing. He stressed that if the City does not show prudent responsibility regarding the electric utility by adopting the 6 percent rate adjustment, both of these important negotiations may fail, thereby causing a 20 percent rate adjustment in February 1996, as well as possible loss of control of the electric utility because of bond convenent non-compliance. While Council Member R. Anderson acknowledged the fact that the City must meet both the reserve and operating and maintenance requirements of its bond covenants, he related that these requirements can either be met by increasing revenue or reducing expenditures. He related that the City Council, at is meeting of October 17, 1995, requested staff to prepare cost reduction alternatives and the related impacts for the City Council's consideration. He recalled that approximately three years ago, only General Fund departments were required to make serious expenditure reductions in order to balance its budget and he questioned why the Electric Utility should now be treated any differently than the General Fund departments. He attributed the Electric Utility Department's current problems to high level management decisions in the area of new power generation and not necessarily in receiving new power. He cited problems associated with the San Juan power, Lake Redding hydroelectric project, and the peaking power project. He stated that he would need answers to the following questions before he would be prepared to vote on the proposed rate adjustment: 1) Why did the City ever enter into an agreement for the San Juan power when there was no way the power could be wheeled to Redding; 2) How much is the cost going to be to generate electricity at the peaking power plant, compared to what the City is paying PG&E; and 3) What is the City receiving for the $11.2 million paid annually to M-S-R. Mr. Graves believed that the transmission links are essentially completed, whereby the City in the near future should be able to receive power from San Juan. He stressed that the real value of the Redding Power project is the fact that it allows the City to access other markets for power. He suggested that the City Council may want to discuss this topic at a workshop. Council Member R. Anderson requested that the City Council begin receiving monthly financial statements on the Electric Utility. He stated that the statements could be similar to that currently being received on the General Fund. Mayor Kehoe concurred. In response to Council Member P. Anderson, Mr. Lindley explained that there are three projects currently under construction which will enable the City to wheel its San Juan power: Mead-Phoenix transmission line from Boulder, Nevada, to Phoenix, Arizona (which is essentially completed); Mead-Adelanto transmission line from Adelanto, California, and would connect with the Mead-Phoenix transmission line (anticipated to be completed in early 1996); and Adelanto-Lugo transmission line which will connect the Mead-Adelanto transmission line to Edison's territory where M-S-R has an agreement to transmit the power to PG&E and ultimately the California-Oregon Transmission Project (COTP). He stressed that the City's only participation in these projects is through its agreement with M-S-R. In response to Mayor Kehoe, Mr. Graves explained that the economic models predict it will take about five years, including the current year, to accept the cost responsibility of becoming a full-service electric utility. Beginning in the year 2000, rate increases are projected at zero, or very minimal for the next several years. He stressed that the Electric Utility is very concerned about maintaining as low of a utility rate as possible. Mayor Kehoe voiced his concern for the residents of the community who are living on fixed incomes and cannot afford to absorb these additional rate increases. He questioned whether the City could implement some type of program for residential customers which would be tantamount to that implemented for businesses for utilizing power during non-peak hours. Mr. Lindley responded that the City could initiate programs which would provide alternatives for residential customers, i.e., time-of-use rate. He stated that staff has not previously recommended the introduction of such a rate because the City does not have cost figures to determine whether it would adversely impact the rate base. He related, however, that staff is currently conducting studies relative to time-of-use rates for residential customers. In response to Council Member R. Anderson's previous comments regarding cost reduction measures previously taken by the General Fund departments, Mr. Lindley explained that some of the General Fund's cost cutting measures were ultimately passed on to the Electric Utility. Mr. Lindley explained that energy prices today are lower than they have been for many years. He believed that in the near future the City will find San Juan power costs to be a very good buy for the City. He stated that the PacifiCorp agreement will allow power to be exchanged and delivered to the City from the northwest, while utilizing the southwest transmission lines either for additional imports or allow the power to be sold to other agencies. Mayor Kehoe opined that one of the Electric Utility's high priorities should be looking at such things as time-of-use rates for residential customers. He requested staff to provide a time line as to when such a program can be presented to the City Council for consideration. Mr. Graves responded that one of the disadvantages to this evening's presentation is the fact that the City Council did not learn that there is already approximately a seven percent competitive advantage given to residential customers. Over the course of the next year, the Electric Utility plans to meet with individuals from the community to obtain their ideas and suggestions. Council Member R. Anderson noted that individuals on fixed incomes are only receiving a cost-of-living adjustment equal to about three percent and the City should attempt to adjust its increase accordingly. He requested that the City Council be provided with more lead time on future rate adjustments, thereby allowing time to review the material and ask the necessary questions. Council Member McGeorge opined that everything has gone up in price, and, at times, rate adjustments are inevitable. He viewed this as a situation where the ratepayer can either pay today or pay tomorrow. He expressed concern that the rate adjustment will be even greater if it is deferred. Frances Jenkins stated that the City Council must seriously consider the fact that the average electric utility ratepayer is not making 252 percent more than he was in 1982. In addition to those individuals living on fixed incomes, many young families are struggling to live on minimum wage incomes. She concurred that the ratepayers are paying for some past decisions that were very costly. Carl Arness stressed that a proposed electric utility rate adjustment should not come as a surprise to the Chamber of Commerce because it has occurred every November since he could remember. He noted that someone has to pay for any program which is implemented for the benefit of the ratepayer, i.e., Lifeline. While no one wants to see a rate adjustment adopted, he stated that the residents want to ensure the City has stable and reliable utilities. Tammy Shuffelberger, Future Trucking Professionals, questioned the percentage of M-S-R's participation in the Mead-Adelanto, Mead-Phoenix and Adelanto-Lugo transmission lines. Mr. Lindley outlined M-S-R's participation as follows: 1) Mead-Phoenix - 12.5 percent; 2) Mead-Adelanto - 17.5 percent; and 3) Adelanto-Lugo - The transmission line is currently under study and M-S-R's participation in this line has not yet been determined. In response to Ms. Shuffelberger, Mr. Lindley stated that the current exchange agreement with PacifiCorp provides for a 1.37 to 1 exchange. He clarified that for every kilowatt hour of power the City delivers to PacifiCorp, they credit the City for 1.37 times that amount. When rate adjustments are considered in the future, Council Member P. Anderson requested staff to prepare a comparison of budget line items detailing what line items have changed, thereby necessitating a change in the forecasts utilized during budget deliberations. Council Member Murray noted that one of the reasons a 10.56 percent increase is currently required is the fact that the sale assumption of the San Juan power has not occurred. He believed, however, that a number of good ideas have transpired this evening: 1) A regular budget detail is important and will enable the City Council to become familiar with the process earlier in the year; 2) Rate adjustment hearings should occur one to two months earlier; and 3) Programs to assist the needs of residents on fixed incomes. He noted that there are a number of programs which can assist individuals on fixed income. He cautioned, however, that these programs come at a price to other ratepayers within the City. He opined that given the City's current negotiations, a rate adjustment at this time is absolutely essential to the City's financial market creditability. MOTION: Made by Council Member McGeorge, seconded by Council Member Murray, to approve a 6 percent electric utility rate adjustment effective November 1, 1995, and direct staff to continue to look for additional cost reduction alternatives as previously requested at the October 17, 1995, meeting. Voting was as follows: Ayes: Council Members - McGeorge and Murray Noes: Council Members - P. Anderson, R. Anderson and Kehoe Absent: Council Members - None Motion failed. Council Member R. Anderson stated that the main reason he opposed the motion was the fact that staff did not present specific cost reduction alternatives as previously requested. He acknowledged that while some of these alternatives would have negative implications, it would provide additional information on which to base his decision. Council Member Murray stated that a 6 percent increase effective November 1, 1995, is necessary to avoid an enormous increase in February 1996. He perceived the City Council lacked confidence in both the information and numbers presented by staff. He recommended that the City Council direct the City Manager to prepare a report for the City Council's consideration and that a cost of service and/or management audit be completed on the Electric Utility Department under the direction of the City Manager utilizing whatever consultant he selects. He related the purpose of the audit would be to create a level of confidence which does not seem to currently exist. Mr. Warren also expressed concern that if the City does not adopt the proposed electric utility rate adjustment, it could jeopardize negotiations with PacifiCorp. He stressed that the Electric Utility Department is treated no differently from any other department at budget time. He believed a management audit could be beneficial both to him and the City Council. He stated that if such an audit would lend greater confidence to both the public and the City Council, it should be pursued. He recommended that the City Council pursue the management audit parallel with a rate adjustment in two weeks. It was the consensus of the City Council to continue the public hearing regarding the proposed electric utility rate adjustment to November 21, 1995. At the hour of 9:47 p.m., Mayor Kehoe declared the meeting recessed. At the hour of 10:00 p.m., Mayor Kehoe reconvened the meeting to regular session. MONTHLY FINANCIAL REPORT - September 1995 (B-130-070) Director of Administrative Services Starman's Report to City Council dated October 22, 1995, incorporated herein by reference, detailed the General Fund's Monthly Financial Report for September 1995. In summary, total revenue to date is $6,400,000, which is slightly 3 percent lower than staff's original cash flow estimate, and expenditures to date total $8,437,724, or 1.2 percent above staff's original cash flow projection. City Manager Warren interjected that the City's ten-year financial plan has been updated based on current revenues and the valley year occurring in two years now indicates a nine percent reserve. He stated that he will be working with the Director of Administrative Services to develop a chart detailing the General Fund and what is occurring, as well as the Electric Utility. Council Member R. Anderson asked that the chart also contain prior year information. MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson, to accept the Monthly Financial Report for September 1995. The Vote: Unanimous Ayes ORDINANCE - Amending Redding Municipal Code Section 2.52.070 re Change in Planning Commission Meeting Time (B-080-300) Acting Planning Director Keaney related that the Planning Commission, at its meeting of October 24, 1995, requested that the Redding Municipal Code be amended to change the Planning Commission meetings from 1:00 p.m. to 2:00 p.m. It is the recommendation of staff that the City Council offer the necessary ordinance for first reading changing the Planning Commission meeting time to 2:00 p.m. and waive the full reading of said ordinance. Council Member McGeorge offered Ordinance No. 2140 for first reading, an ordinance of the City Council of the City of Redding amending Redding Municipal Code Section 2.52.070 to change the time of the Planning Commission meetings to 2:00 p.m. MOTION: Made by Council Member McGeorge, seconded by Council Member R. Anderson, that the full reading of Ordinance No. 2140 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes STORM DRAIN UTILITY (S-060-685) Director of Public Works Galusha provided an overview of the Report to City Council dated November 3, 1995, incorporated herein by reference, which provided a financial update regarding the Storm Drain Utility. Mr. Galusha explained that the amount of impervious acreage available for billing a Storm Drainage Utility fee was overestimated, and consequently, the revenues are considerably lower than expected. To provide a balanced operating budget and funding for needed capital improvements, either utility rates should be increased, a General Fund subsidy provided, or service levels need to be reduced. Assuming all the projects in the approved five-year storm drain capital improvement program are undertaken, the capital fund balance will be exhausted by 1997-98. Mr. Galusha related that capital projects which are completed first will be those that have the greatest potential to cause private property damage. He cited the flooding in Lake Redding Estates where the culverts overtopped the existing 100-year design flows and caused personal and public property damage. While final claims for this damage have not yet been determined, approximately $380,000 has been spent for the culvert replacements. Legal fees and personal property damage settlements could equal that amount because, in this situation, the facilities were not replaced before the storm. He stated that because major storm events are unpredictable, improvements necessary to protect personal property should be scheduled as soon as possible. Mr. Galusha summarized that the utility operation revenues are not adequate to cover operating and maintenance costs, nor the $1,700,000 of storm drainage capital improvements needed due to existing conditions. He recommended that the City Council increase rates enough to provide a balanced operating budget and provide funding for capital improvements or a combination of alternatives that would maintain current service levels and provided a minimum of $200,000 annually for storm drain capital projects over the next five years. He noted that combined with the storm drain tax funds, the department would have approximately $400,000 annually to address storm drainage deficiencies throughout the City. He stated that if the City Council wants to consider a rate increase, it will be necessary to set a public hearing. City Manager Warren provided an additional alternative for the City Council's consideration. This alternative would include increasing rates to cover the cost of operations and maintenance by $.08 per month for a single-family residence; $.05 per month for a multi-family residence; and $1.14 per month per acre for commercial properties, decreasing the current maintenance service levels of street sweeping, and, if necessary, having the General Fund pick up the cost of street sweeping. He explained that by increasing rates slightly and decreasing services slightly, the fund would remain in the black and have funds to be utilized for capital projects. In response to Council Member P. Anderson, Mr. Galusha related that residential streets are currently swept once a month, commercial streets are swept every week, and the downtown area, which is primarily State highways, is swept three times per week. He noted that the City receives reimbursement from the State for sweeping the State highways. Mr. Warren recommended that the City Council first attempt to reduce street sweeping services. He noted that if substantial complaints are received regarding the reduction in street sweeping services, the service can always be increased, with the General Fund subsidizing the difference. Council Member R. Anderson stressed that his position regarding the Storm Drain Utility has not changed since its original formation. He recommended that the storm drain utility rates remain the same and the City Manager be directed to make the necessary reductions to balance the Storm Drain Utility budget. He related that if the City Manager believes a specific capital project is warranted, he can then recommend to the City Council that General Fund monies be used for such a purpose. Council Member Murray was concerned about the potential liability associated with flooding if money is not designated for the necessary capital projects. In response to Council Member Murray, Mr. Warren stated that if street sweeping services are reduced, he did not foresee a reduction in personnel. He explained that the affected individual would be absorbed by the General Fund until such time as the individual could be transferred to a vacant position. MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson, to not increase the Storm Drain Utility rates, direct the City Manager to make the necessary reductions to balance the Storm Drain Utility budget, and direct the City Manager to bring capital project recommendations before the City Council if he deems the project a high priority and one which should be funded by the General Fund. Voting was as follows: Ayes: Council Members - P. Anderson, R. Anderson, McGeorge and Kehoe Noes: Council Members - Murray Absent: Council Members - None LETTER OF APPRECIATION - re Tour of Solid Waste Facility (A-050-270) City Clerk Strohmayer read the letter received from George Cole, a teacher at Shasta Meadows School, commending Solid Waste Supervisor Dennis Carvalho for the kindness and enthusiasm he showed to Mr. Cole's fifth grade class while conducting a tour of the solid waste facility. Mayor Kehoe conveyed appreciation to Mr. Carvalho for a job well done. PUBLIC COMMENT (E-090-100) Frances Jenkins opined that, under the guidance of the current City Manager and Assistant City Manager, better oversight is now being given to City departments, thereby increasing public confidence previously referenced during the discussions regarding the proposed electric utility rate adjustment. CLOSED SESSION - re Existing Litigation (L-100) Mayor Kehoe related that the City Council would adjourn to closed session pursuant to California Government Code Section 54956.9(a) to discuss the following: Conference with Legal Counsel - Existing Litigation: City of Redding v. Shasta Enterprises, et. al., and related cross-action, Shasta County Superior Court Consolidated Case Nos. 87226 and 95735. At the hour of 10:33 p.m., Mayor Kehoe adjourned the meeting to closed session. At the hour of 11:55 p.m., Mayor Kehoe reconvened the meeting to regular session. No reportable action was taken. ADJOURNMENT There being no further business, at the hour of 11:55 p.m., Mayor Kehoe declared the meeting adjourned to 1:30 p.m., Tuesday, November 14, 1995, at the Contractor's Turtle Bay House, 2856 Blue Bell Drive, Redding, California. APPROVED: Mayor Kehoe ATTEST: City Clerk