HomeMy WebLinkAboutMinutes - City Council - 1996-02-0617
City Council, Regular Meeting
City Council Chambers
1313 California Street
Redding, California
February 6, 1996 7:00 p.m.
Also present were City Manager Warren, Assistant City Manager Perry, City
Attorney Wingate, Director of Administrative Services Starman, Acting Planning
Director Keaney, Director of Electric Utility Lindley, Community Services
Director Gorman, Finance Officer Strong, Assistant City Engineer Aasen, Airports
Director Perry, Marshal Del Carlo, General Services Director Masingale,
Management Assistant to the City Manager Bachman, Purchasing Officer Roberts,
Management Analyst Dent, City Treasurer Linville, City Clerk Strohmayer, and
Secretary to the City Council Rudolph.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Minutes - Adjourned Regular Meeting of November 14, 1995; Special
Meeting of November 15, 1995; Regular Meeting of
November 21, 1995; Regular Meeting of December 5, 1995;
Special Meeting of December 6, 1995, Special Meeting of
December 12, 1995, and Regular Meeting of January 2,
1996
Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 14, for the period January
16, 1996, through January 30, 1996, check numbers 228518 through 229161
inclusive, in the amount of $3,617,473.18, Payroll Register No. 15, for the
period December 31, 1995, through January 13, 1996, check numbers 412510 through
413209 inclusive, and electronic deposit transaction numbers 27457 through 27684,
totaling $1,352,287.92, and Payroll Register No. 16, for the period January 14,
1996, through January 27, 1996, check numbers 413210 through 413904 inclusive,
and electronic deposit transaction numbers 27685 through 27913, totaling
$1,303,464.13, be approved.
TOTAL: $6,273,225.23
Treasurer's Report - December 1995
(A-050-100-600)
Total Treasurer's Accountability - $ 66,375,034.11
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities - $193,919,308.21
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 December 31, 1995, be accepted.
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 January 22, 1996, 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 - re Intention to Begin Legal Proceedings of Abatement at 1023 State
Street, owned by Elouise and Hugh Shuffleton
(A-030-070)
It is the recommendation of the Acting Planning Director that Resolution No. 96-
027 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 1023 State Street,
owned by Elouise and Hugh Shuffleton.
Resolution - re Adopting Diestelhorst Bridge Mitigation Monitoring Program
(5-070-050-100 & L-010-075)
It is the recommendation of the Acting Planning Director that Resolution No. 96-
028 be adopted, a resolution of the City Council of the City of Redding adopting
the Diestelhorst Bridge Replacement Mitigation Monitoring Program and Compliance
Checklist.
Set Public Hearing - re General Plan Amendment Application GPA -2-94, by Hilltop
Bluffs (Southwest corner of Hilltop Drive and Palisades Avenue)
(G-030-010)
It is the recommendation of the Acting Planning Director that a public hearing
be set for 7:00 p.m., February 20, 1996, to consider the request to amend the
02/06/96
The Pledge of Allegiance to the Flag was
led by Boy
Scout Troop 42.
The Invocation was offered by Pastor Peter
Dembroski,
First Presbyterian Church.
The meeting was called to order by Mayor
Members present: R. Anderson, McGeorge,
Kehoe with
Murray and
the following Council
Kehoe. Mayor Kehoe noted
that Council Member P. Anderson's absence
was excused.
Also present were City Manager Warren, Assistant City Manager Perry, City
Attorney Wingate, Director of Administrative Services Starman, Acting Planning
Director Keaney, Director of Electric Utility Lindley, Community Services
Director Gorman, Finance Officer Strong, Assistant City Engineer Aasen, Airports
Director Perry, Marshal Del Carlo, General Services Director Masingale,
Management Assistant to the City Manager Bachman, Purchasing Officer Roberts,
Management Analyst Dent, City Treasurer Linville, City Clerk Strohmayer, and
Secretary to the City Council Rudolph.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Minutes - Adjourned Regular Meeting of November 14, 1995; Special
Meeting of November 15, 1995; Regular Meeting of
November 21, 1995; Regular Meeting of December 5, 1995;
Special Meeting of December 6, 1995, Special Meeting of
December 12, 1995, and Regular Meeting of January 2,
1996
Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 14, for the period January
16, 1996, through January 30, 1996, check numbers 228518 through 229161
inclusive, in the amount of $3,617,473.18, Payroll Register No. 15, for the
period December 31, 1995, through January 13, 1996, check numbers 412510 through
413209 inclusive, and electronic deposit transaction numbers 27457 through 27684,
totaling $1,352,287.92, and Payroll Register No. 16, for the period January 14,
1996, through January 27, 1996, check numbers 413210 through 413904 inclusive,
and electronic deposit transaction numbers 27685 through 27913, totaling
$1,303,464.13, be approved.
TOTAL: $6,273,225.23
Treasurer's Report - December 1995
(A-050-100-600)
Total Treasurer's Accountability - $ 66,375,034.11
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities - $193,919,308.21
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 December 31, 1995, be accepted.
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 January 22, 1996, 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 - re Intention to Begin Legal Proceedings of Abatement at 1023 State
Street, owned by Elouise and Hugh Shuffleton
(A-030-070)
It is the recommendation of the Acting Planning Director that Resolution No. 96-
027 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 1023 State Street,
owned by Elouise and Hugh Shuffleton.
Resolution - re Adopting Diestelhorst Bridge Mitigation Monitoring Program
(5-070-050-100 & L-010-075)
It is the recommendation of the Acting Planning Director that Resolution No. 96-
028 be adopted, a resolution of the City Council of the City of Redding adopting
the Diestelhorst Bridge Replacement Mitigation Monitoring Program and Compliance
Checklist.
Set Public Hearing - re General Plan Amendment Application GPA -2-94, by Hilltop
Bluffs (Southwest corner of Hilltop Drive and Palisades Avenue)
(G-030-010)
It is the recommendation of the Acting Planning Director that a public hearing
be set for 7:00 p.m., February 20, 1996, to consider the request to amend the
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General Plan on property located at the southwest corner of Hilltop Drive and
Palisades Avenue from "Residential, 3.5 and 9.0 units per acre" and "Greenway"
to "Office," "Residential, 3.5 and 6.0 units per acre," and "Greenway."
Set Public Hearing - re General Plan Amendment Application GPA -3-95 and Rezoning
Application RZ-12-95, by the Hamstra Group (351 Hartnell Avenue)
* (G-030-010 & L-010-230)
It is the recommendation of the Acting Planning Director that a public hearing
be set for 7:00 p.m., February 20, 1996, to consider the request to amend the
General Plan land -use designation on property located at 351 Hartnell Avenue from
"Residential, 9.0 units per acre" and "Greenway" to "Office" and "Greenway" and
the rezoning of said property from 11RM-9" Multiple -Family Residential District
and "U -F" Unclassified District with the Site Plan Review Combining District to
11CO-15" Office District and "U -F" Unclassified District with the Site Plan Review
Combining District.
Resolution - Summarily Vacating a Portion of Non -Access Strip/Easement re
Abandonment Application A-1-96 by Jim Henry (1191 Prestige Way)
(A-010-040 & L-010-390)
It is the recommendation of the Acting Planning Director that Resolution No. 96-
029 be adopted, a resolution of the City Council of the City of Redding summarily
vacating a 40 -foot wide portion of a non -access strip located adjacent to
Caterpillar Road on property located at 1191 Prestige Way (A-1-96) with regard
to Use Permit UP -49-95.
Award of Bid - Bid Schedule No. 2978, Purchase of Relay and Control Panels for
Texas Springs Substation Project
(B-050-100)
It is the recommendation of the Electric Utility Director that Bid Schedule No.
2978, purchase of relay and control panels for Texas Springs Substation Project,
be awarded to the evaluated low bidder, Harlo Corporation, in the amount of
$149,406.76. Funds for this purchase are included in the 1993 Electric System
Financing Program. In addition, the Fiscal Year 1995-96 Capital Improvement
Program included $1,370,000 for purchases of major equipment and project design.
Award of Bid - Bid Schedule No. 2979, Purchase of a 115kV Circuit Switcher and
Support Structure for Texas Springs Substation Project
(B-050-020 & E-090-140-800)
It is the recommendation of the Electric Utility Director that Bid Schedule No.
2979, purchase of a 115kV circuit switcher and support structure for Texas
Springs Substation Project, be awarded to the evaluated low bidder, S & C
Electric, in the amount of $34,464, excluding field service and spare parts.
Funds for this purchase are included in the 1993 Electric System Financing
Program. In addition, the 1995-96 Capital Improvement Program includes
$1,370,000 for purchase of major equipment and project design.
Lease Amendments - Turtle Bay Park and Redding Rodeo Association Leases
(C-070-100 & C-070-250-250 C-050-560)
It is the recommendation of the Community Services Director that the City Council
approve the First Addendum to the Ground Lease with the Alliance of Redding
Museums, a.k.a. Turtle Bay Park and Museum, to provide for the expansion of its
leased premises by approximately 2.75 acres to provide for additional parking.
It is further recommended that the City Council approve the Second Addendum to
the Lease with the Redding Rodeo Association concerning the Turtle Bay Park and
Museum project's need for additional parking area and the need to clarify the
parking area joint use provisions.
Status Report - re Southeast Asian Community Awareness Project
(A-050-060)
It is the recommendation of the Community Services Director that the City Council
accept the status report dated January 29, 1996, incorporated herein by
reference, regarding the Southeast Asian Community Awareness Project.
Cable Rate Increase- by Viacom Cablevision
(T-040-050)
It is the recommendation of the Community Services Director that the City Council
not exercise its option to regulate basic cable rates subject to Viacom
Cablevision's continuing practice to give the City a 45 -day notice of any rate
increase.
Resolution - Ordering Judicial Foreclosure of Delinquent Bond
Assessments/Reassessments Pursuant to Improvement Bond Act of 1915
(A-170)
It is the recommendation of the City Treasurer that Resolution No. 96-030 be
adopted, a resolution of the City Council of the City of Redding ordering
judicial foreclosure of delinquent bond assessments and reassessments pursuant
to the Improvement Bond Act of 1915, and ordering that the Tax Collector be
credit with those assessments and reassessments.
Set Public Hearing - re Adoption of Household Hazardous Waste Element (HHWE)
(P-150-050-500)
It is the recommendation of the General Services Director that a public hearing
be set for 7:00 p.m., February 20, 1996, to consider the adoption of the
Household Hazardous Waste Element.
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Payment for Water Main Oversizing - re Country Heights Subdivision, Unit 10
(W-030-725 & 5-100-108)
It is the recommendation of the Public Works Director that the City Council
authorize the payment of $33,988.75 to Signature Northwest for the cost of
oversizing the water main in Country Heights Subdivision, Unit 10, per the master
plan. Funds for this expenditure are available in the 1995-96 Water budget, Job
Order No. 143-86-3511.
Notice of Completion - Bid Schedule No. 2949, Wilshire Drive Waterline
Installation Assessment District 1994-1
(B-050-020 & A-170-150-965)
It is the recommendation of the Public Works Director that Bid Schedule No. 2949
(Job No. 7976-14), Wilshire Drive Waterline Installation Assessment District
1994-1, awarded to Bobby Martin Construction, be accepted as satisfactorily
completed, and the City Clerk be authorized to file a Notice of Completion. The
final contract price is $149,206.92.
Acceptance of Final Map - Country Heights Subdivision, Unit No. 15A (S-8-94)
(West of Howard Drive at the west end of Sunglow Drive)
(5-100-108)
It is the recommendation of the Public Works Director that the Final Map for
Country Heights Subdivision, Unit No. 15A, be approved, the Mayor be authorized
to sign the Subdivision Agreement, and the City Clerk instructed to file the map
with the Shasta County Recorder.
Acceptance of Final Map - Northbrook Subdivision Tract No. 1747 (5-8-95) (East
of Ridgewood Drive and north of Collier Drive)
(5-101-019)
It is the recommendation of the Public Works Director that the Final Map for
Northbrook Subdivision Tract No. 1747 be approved, the Mayor be authorized to
sign the Subdivision Agreement, and the City Clerk instructed to file the map
with the Shasta County Recorder.
Resolution - re Street Closures for Record Searchlight Half Marathon
(P-030-250 & P-010-050)
It is the recommendation of the Public Works Director that Resolution No. 96-031
be adopted, a resolution of the City Council of the City of Redding pertaining
to the Record Searchlight Half Marathon to be held on Saturday, February 24,
1996, specifically the closure of streets to vehicular traffic from 6:00 a.m. to
3:00 p.m.
Agreement - with Redding Area Bus Authority re Purchase and Maintenance of
Private Business Telephone Communication System
(C-174-825 & R-010-120)
It is the recommendation of the City Attorney that the City Council approve the
agreement with the Redding Area Bus Authority regarding the purchase and
maintenance of the Private Business Telephone Communication System.
MOTION: Made by Council Member McGeorge, seconded by Council Member R. Anderson,
that all the foregoing items on the Consent Calendar be approved and adopted as
recommended.
Voting was as follows:
Ayes: Council Members - R. Anderson, McGeorge, Murray & Kehoe
Noes: Council Members - None
Absent: Council Members - P. Anderson
Resolution Nos. 96-027, 96-028, 96-029, 96-030, and 96-031 are on file in the
office of the City Clerk.
REQUEST TO ADDRESS THE CITY COUNCIL BY TIFCO INDUSTRIES - Re Fastener Contract
No. 50322
(B-050-100)
Sid Harman, representing Tifco Industries, related that Tifco Industries' was
awarded the City's 1995 fastener contract. He explained that at that time the
contract was awarded, Tifco was under the impression that the contract would be
extended an additional year if all contract requirements were met, prices
remained constant, and service was acceptable. With this in mind, he stated that
Tifco made a sizeable investment in both man hours and equipment, i.e., storage
bins. He noted that in November 1995, Tifco was informed that the 1996 contract
would be put out for bid. He indicated that Tifco is one of the few vendors
which provides only American-made products. He questioned whether the successful
bidder would be able to meet this contract requirement.
Mayor Kehoe pointed out that the bid proposal did not guarantee the contract
would be extended an additional year. Also, the proposal indicates that the
successful vendor would need to provide such items as storage bins which would
ultimately become the City's property. Based on the bid specifications, he
opined that there did not appear to be any ambiguity regarding the City's
conduct. He suggested that Mr. Harman discuss his concerns in detail with the
City Manager.
Mayor Kehoe requested the City Manager to look into the issue of requiring
American-made products.
In keeping with the City's Business Philosophy, Council Member Murray pointed out
that the contract only requires American-made products to be delivered to the
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City of Redding. He expressed confidence that the City will review the contract
and ensure that only American-made products are delivered and utilized.
No action was taken.
LETTER OF RESIGNATION - George Lewellen from the Economic Development Corporation
(B-080-150)
MOTION: Made by Council Member McGeorge, seconded by Council Member R. Anderson,
to accept George LewellenIs resignation from the Economic Development Corporation
effective immediately. The Vote: Unanimous Ayes
JOINT SESSION OF THE REDDING CITY COUNCIL AND THE REDDING REDEVELOPMENT AGENCY
The point session of the Redding City Council and the Redding Redevelopment
Agency was convened at 7:15 p.m.
PUBLIC HEARING - re Proposed Sale of Property Located at 3911 Churn Creek Road
(R-030-050-050 & R-030-050-310)
City Attorney Wingate clarified that Council Member McGeorge is not a member of
the Redding Redevelopment Agency (Agency) and will, therefore, only be acting on
behalf of the City Council. In addition, he stated that he has advised Council
Member Murray to proceed with participating on this matter for the following
reasons: 1) Although he is in a partnership with an individual involved in the
proposed transaction, Mr. Murray has no financial interest as described in the
Conflict of Interest Code of the State of California; and 2) His participation
is required for an Agency quorum.
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the joint public hearing
regarding the proposed sale of property located at 3911 Churn Creek Road.
The following documents are on file in the office of the City Clerk:
Affidavit of Publication - Notice of Public Hearing
Staff Recommendation dated February 6, 1996
City Clerk Strohmayer advised that no protests were received.
Assistant City Manager Perry provided an overview of the Report to City Council
dated February 6, 1996, incorporated herein by reference, regarding the Agency's
proposed disposition of property located at 3911 Churn Creek Road. He explained
that the Agency, at its December 11, 1995, meeting, directed staff to make its
property at 3911 Churn Creek Road available for sale through the Board of
Realtors with an agreement to pay a three percent commission upon the completion
of the sale. The Agency's asking price is $35,000, which is the estimated fair
market value less the credit for the covered parking requirement.
Mr. Perry related that two offers to purchase have been received. The first
offer was made by Kevin Quigley for $32,000 for the two-bedroom, two -bath
residence in its "as is" condition. The offer was contingent upon Mr. Quigley
obtaining a FHA 203K loan to cover the costs of both the purchase price and the
improvements needed to bring the property up to the Housing Quality Standards.
The two other primary contingencies were: 1) the buyer qualifying for the loan;
and 2) the residence appraising at purchase price plus the cost of improvements.
In addition, Mr. Quigley has offered to pay all escrow and title insurance fees,
as well as the County transfer tax, a savings to the Agency of about $400. The
Agency would be required to pay, if any, seller fees required by FHA, which are
not anticipated to exceed $300. Mr. Quigley indicated that staff countered back
to Mr. Quigley a sales price of $33,000 based on the estimated fair reuse value
of the property and included the requirement for replacement of the single -car
garage with one covered parking space. The adjusted purchase price is $33,000
plus the $400 savings to the Agency, or $33,400. He noted that the counter offer
has been accepted by Mr. Quigley and is subject to approval by the Agency and the
City Council pursuant to Community Redevelopment Law as contained in the State
Health and Safety Code.
Mr. Perry stated that the second offer made by David Gooch in the amount of
$40,765 was received on the same day the public hearing notice appeared in the
local newspaper. Under this offer, the seller is required to pay the buyer's
closing costs, roof expenses, and termite clearance expenses for a total not -to -
exceed cost of $5,600. This brings the adjusted purchase price to $35,165. The
buyer, not knowing the exact costs, has included an addendum stipulating a gross
price of $35,200.
Mr. Perry noted that the estimated net proceeds to the Agency are $32,096 under
the first offer, and $33,547 under the second offer, a difference of $1,451.
Under State law, Mr. Perry related that the resolution approving the sale must
find that the sale of the property will assist in the elimination of blight or
provide housing for low- or moderate -income persons, and is consistent with the
implementation plan. It must also contain one of the following findings: 1)
That the consideration is not less than the fair market value at its highest and
best use in accordance with the plan; or 2) That the consideration is not less
than the fair reuse value at the use and with the covenants and conditions and
development costs authorized by the sale. He indicated that both offers meet or
exceed the fair reuse value. The Summary of Disposition Reports addressed the
requirement to assist in the elimination of blight. In addition, he indicated
that the sale of the property to either party would provide housing for low- or
moderate -income persons. He further noted that with respect to being consistent
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with the implementation plan, the replacement of inadequate public infrastructure
along Churn Creek Road, a major north -south arterial, is identified in the Five -
Year Implementation Plan for the Canby/Hilltop/Cypress Redevelopment Project
Area.
It is the recommendation of staff that the City Council adopt the necessary
resolution making the necessary findings in connection with the proposed sale of
the property to Kevin Quigley. It is further recommended that the Agency
authorize the City Attorney to enter escrow subject to the terms outlined in the
counter to the first offer and accept Mr. Gooch's offer to purchase as a backup
offer in the event the requirements set forth in Mr. Quigley's offer cannot be
met.
In response to Council Member R. Anderson, Management Analyst Dent clarified that
Mr. Quigley had accepted the counter offer prior to Mr. Gooch's offer being
received.
Mayor Kehoe determined that there was no one present wishing to speak on the
matter and closed the joint public hearing.
MOTION: Made by Council Member McGeorge, seconded by Council Member Murray, that
Resolution No. 96-032 be adopted, a resolution of the City Council of the City
of Redding approving the sale of the Redding Redevelopment Agency property
located at 3911 Churn Creek Road to Kevin Quigley.
Voting was as follows:
Ayes: Council Members - R. Anderson, McGeorge, Murray and Kehoe
Noes: Council Members - None
Absent: Council Members - P. Anderson
Resolution No. 96-032 is on file in the office of the City Clerk.
MOTION: Made by Agency Member R. Anderson, seconded by Agency Member Murray,
authorizing the City Attorney to enter escrow regarding the sale of property at
3911 Churn Creek Road to Kevin Quigley subject to the terms outlined in the
counter to the first offer and accept David Gooch's offer as a backup offer in
the event the requirements set forth in Mr. Quigley's offer cannot be met.
Voting was as follows:
Ayes: Agency Members - R. Anderson, Murray and Kehoe
Noes: Agency Members - None
Absent: Agency Members - P. Anderson
At the hour of 7:25 p.m., the joint session of the Redding City Council and the
Redding Redevelopment Agency was adjourned.
PUBLIC HEARING - re Capital Outlay Fund for Shasta Union High School District
(R-030-050-310 & R-030-075-040)
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing
regarding the Capital Outlay Fund for Shasta Union High School District.
The following documents are on file in the office of the City Clerk:
Affidavit of Publication - Notice of Public Hearing
Staff recommendation dated February 6, 1996
City Clerk Strohmayer advised that no protests were received.
Assistant City Manager Perry related that under a Property Tax Pass -Through
Agreement with the Shasta Union High School District (SUHSD) for the Canby -
Hilltop -Cypress project and the Market Street project, SUHSD may submit a list
of projects and request that any deposited funds from the capital outlay fund
created from said agreement be forwarded to SUHSD.
Mr. Perry indicated that the projects must be capital projects that improve or
add facilities to schools which are of benefit to the project areas. He stated
that SUHSD has submitted the following two projects for review and funding in the
amount of $21,578 from fiscal years 1994-95 and 1995-96: 1) Improvements to the
parking lot at Enterprise High School connected to the widening of Churn Creek
Road, including resurfacing and striping; and 2) Completion of the concrete
curbing to protect the new track surface at Enterprise High School.
Mr. Perry summarized that the proposed improvements are to be made at Enterprise
High School, which is located within the Canby -Hilltop -Cypress Redevelopment
Project area, thereby benefiting the project area. In addition, the improvements
related to the street widening include work on the parking lot adjacent to Churn
Creek Road, and the concrete curb is needed to protect the investment in the
school's new track surface. It is, therefore, the recommendation of staff that
the City Council approve the projects.
Mayor Kehoe determined that there was no one present wishing to speak on this
matter and closed the public hearing.
MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson,
to find that SUHSD's proposed capital projects, totaling $21,578, as hereinabove
described are consistent with the Agreement and Redevelopment Law, are of primary
benefit to the project area, and there is no other reasonable means for financing
the improvements. The Vote: Unanimous Ayes
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PUBLIC HEARING - re Abandonment Application A-6-95, by Mark Gunlogson (2550
Clover Creek Street)
(A-010-040)
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing
regarding Abandonment Application A-6-95.
The following documents are on file in the office of the City Clerk:
Affidavit of Mailing - Notice of Public Hearing
Affidavit of Publication - Notice of Public Hearing
Planning Commission recommendation dated January 22, 1996
City Clerk Strohmayer advised that no protests were received.
Acting Planning Director Keaney provided an overview of the Report to City
Council dated January 22, 1996, incorporated herein by reference, regarding
Abandonment Application A-6-95 by Mark Gunlogson. He related that the proposed
abandonment consists of a 1.25 acre open -space easement.
Mr. Keaney explained that the cessation of airport activities in this area
eliminates the need to maintain a safety clear zone with the open -space easement.
It is, therefore, the recommendation of both the Planning Commission and staff
that the City Council make the following findings, ratify the Negative
Declaration, and adopt the necessary resolution approving the abandonment: 1)
That no public purpose will be served by keeping the land as open space; 2) That
the abandonment is not inconsistent with State laws regulating open -space
easements; 3) That the abandonment is consistent with the General Plan; and 4)
That the abandonment is necessary to avoid a substantial financial hardship to
the landowners due to involuntary factors unique to them.
Mayor Kehoe determined that 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 McGeorge,
that the following findings regarding Abandonment Application A-6-95:
1. Project is compatible with the Redding General Plan;
2. Project will not significant 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 November 8, 1995. The Vote: Unanimous Ayes
MOTION: Made Council Member R. Anderson, seconded by Council Member McGeorge,
that Resolution No. 96-033 be adopted, a resolution of the City Council of the
City of Redding ordering the abandonment of the public use and/or open space
easement at 2550 Clover Creek Street and making the necessary findings associated
with said abandonment (A-6-95).
Voting was as follows:
Ayes: Council Members - R. Anderson, McGeorge, Murray and Kehoe
Noes: Council Members - None
Absent: Council Members - P. Anderson
Resolution No. 96-033 is on file in the office of the City Clerk.
SAVINGS ASSOCIATED WITH NEW TRANSFER STATION
(5-020-650)
City Manager Warren provided an overview of the Report to City Council dated
January 24, 1996, incorporated herein by reference, regarding the savings
associated with the new Transfer Station. He recalled that in April 1992 an
analysis presented to the City Council revealed that the City could reduce the
direct cost of hauling solid waste by $576,391 in the first year after
constructing the transfer station.
Mr. Warren stated he was pleased to report that the projected savings for the
first year, 1995-96, will be approximately $542,958 excluding debt service on the
new facility. He noted that this savings is a direct result of reduced vehicle
miles because of building a transfer station and interim changes made to the
collection system. He indicated that these savings are ongoing and will defray
the capital coats associated with building the transfer facility. In addition,
he highlighted a few of the major cost reductions which have occurred.
This was an information report and no action was required.
ESTABLISHMENT OF HOLDING ACCOUNT FOR WESTERN AREA POWER ADMINISTRATION CONTRACT
REFUNDS
(E-120-900)
City Manager Warren highlighted the Report to City Council dated January 29,
1996, incorporated herein by reference, regarding the establishment of a holding
account for Western Area Power Administration's (WAPA) contract refunds. He
summarized that WAPA intends to lay off, or cancel, a Purchase Power Contract it
has with the City of Redding as of 1999. He noted that this action will result
in $10.6 million less than what the City expected to receive from the contract.
Being fairly conservative, he stated that the City expects to make up
approximately $7.4 million by selling the surplus energy elsewhere, however, a
$3.2 million gap will remain.
Mr. Warren related that as WAPA terminates other contracts, there will be a
reduction in its operating costs, which will be refunded to its customers,
including Redding. As these refunds are received, staff is recommending that the
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City establish a holding account which will be utilized to stabilize City
electric rates through and beyond the year 2000. He acknowledged that while the
yearly refunds would be unexpected and pleasant surprises for the City's electric
utility customers, they will not make up for the increase that will be required
in 1999. He indicated that if for some reason the City changes its mind, i.e.,
the gap is not as great as anticipated, the money that was saved could still go
to lower electric utility rates.
MOTION: Made by Council Member R. Anderson, seconded by Council Member Murray,
authorizing the establishment of a holding account for WAPA contract refunds for
utilization in stabilizing the City's rates through and beyond the year 2000.
The Vote: Unanimous Ayes
RESOLUTION - Voluntary Separation Program for Carter House Science Museum and
Redding Museum of Art and History
(P-100-200 & A-050-175)
Assistant City Manager Perry summarized the Report to City Council dated January
26, 1996, incorporated herein by reference, regarding the establishment of a
Voluntary Separation Program (VSP) for both the Carter House Science Museum and
Redding Museum of Art and History.
Mr. Perry pointed out the following: 1) The respective museum boards would have
to approve the VSP; 2) The establishment of a VSP could potentially accelerate
the privatization effort, reduce the City's management problems, and reduce some
overhead costs associated with City employees not directly tied to a budget; 3)
The museums would pay accrued benefit costs, and the City and the museums would
split the VSP separation cost fifty-fifty. He noted that if everyone applied for
the program, the combined VSP cost would be approximately $33,478; 4) Trade offs
associated with the VSP; and 5) Options to reducing the cost of the VSP.
It is the recommendation of staff that the City Council adopt the necessary
resolution enacting the proposed program. While there is a cost, it has the
option of achieving a quicker separation, a voluntary separation, and reducing
supervision problems. He acknowledged that the program would result in some
money to the employees, however, this is the incentive to participate in order
to purchase the employee's property rights in their job.
Dennis Cowan, representing the Shasta Natural Science Association, pointed out
that the advantage of the VSP to both the museum and the City is that it will
help to define their relationship and further the desired goal of privatization.
He stated that the only individual at the Carter House Natural Science Museum
that has expressed a desire to take advantage of the program is the Museum
Director, thereby eliminating the current problems of a City employee taking
direction from both the Museum Board and the City and supervising non -City
employees. He stressed the importance of allowing the museum to spread the
associated VSP costs out over the next three budget years.
In response to Council Member Murray, Mr. Cowan related that at the end of the
funding agreement, the City is faced with finding City employees positions within
the City organization.
City Manager Warren explained that the City's largest liability is personnel,
i.e., wrongful terminations, discipline, hiring procedures, etc. He believed
that the reduction of Community Services Director Gorman's time in supervising
museum employees and potential future unemployment costs could easily offset the
$16,000 liability associated with buying out the employees' rights.
Mr. Cowan pointed out that at the end of the funding agreements, the museums are
not required to bear any costs associated with the termination of any City
employees.
MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge,
that Resolution No. 96-034 be adopted, a resolution of the City Council of the
City of Redding adopting a City of Redding Voluntary Separation Program for City
employees at the Carter House Natural Science Museum and the Redding Museum of
Art and History.
Voting was as follows:
Ayes: Council Members - R. Anderson, McGeorge, Murray and Kehoe
Noes: Council Members - None
Absent: Council Members - P. Anderson
Resolution No. 96-034 is on file in the office of the City Clerk.
APPOINT UNDERWRITER FOR REFUND/REISSUANCE OF 1915 ACT BONDS
(A-170)
Administrative Services Director Starman related that the City has issued 1915
Act Assessment Bonds to finance capital improvements for years. Since interest
rates are now attractively low, it would be possible to refund the bonds
associated with several existing assessment districts, reissue the debt at a
lower interest rate, and, thereby, reduce the annual debt service payments of the
property owners.
Mr. Starman stated that the refund/reissuance, if completed, would financially
benefit the involved property owners through reduced annual assessments on their
property. Costs associated with the refunding/reissuance would be funded through
bond proceeds. The impact to the City would be an increase in the efficiency of
administering assessment districts resulting from the consolidation of several
districts into one.
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Mr. Starman explained that the City solicited proposals from underwriters
addressing the refunding/reissuance of existing 1915 Act Assessment Bonds. Based
on the evaluation of the proposals, it is the recommendation of staff that the
City Council proceed with the development of a refunding/reissuance of the 1915
Act Bonds where reduced annual debt service would result, and appoint M. L. Stern
& Co., Inc. as underwriter for the transaction.
Council Member Murray recommended that the City Council only appoint M. L. Stern
& Co., Inc. as the underwriter for the possible refund/reissuance of the 1915 Act
Bonds and defer consideration on whether to proceed with said refund/reissuance.
MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson,
to appoint M. L. Stern & Co., Inc. as the underwriter for the refund/reissuance
of 1915 Act Bonds and defer consideration on whether to proceed with said
refund/reissuance. The Vote: Unanimous Ayes
EVALUATION OF CITY'S INVESTMENT PORTFOLIO
(A-050-100)
Administrative Services Director Starman explained that in light of the recent
investment losses of Orange County and Shasta County, staff has secured the
services of several investment experts to perform an evaluation of the City's
investment portfolio. He stated that Public Financial Management, Inc. (PFM) was
engaged to provide a credit analysis of the portfolio, and a volunteer committee
was formed to review the report of PFM.
Mr. Starman indicated that the report of the credit analysis performed by PFM,
contained in the Report to City Council dated January 26, 1996, incorporated
herein by reference, lists the credit quality rate of each security. PFM found
the investment portfolio of the City to be "of very high credit quality." The
committee concurred with this finding and stated that the City is doing "an
excellent job of managing its portfolio at the lowest risk."
Mr. Starman stated the City's high quality portfolio is attributed to City
Treasurer Linville. He expressed appreciation to Ms. Linville for her hard work
in this area.
This was an information item and no action was required.
RESOLUTION - Mid -Year Budget Review
(B-130-070)
Finance Officer Strong provided an overview of the Report to City Council dated
January 30, 1996, incorporated herein by reference, regarding the Mid -Year Budget
review which focused primarily on the General Fund, but also included information
about the City's enterprise funds (i.e., Water, Wastewater, Storm Drainage,
Electric, Solid Waste, Airport, and Tourism/Convention Center funds).
Mr. Strong summarized that expenditures are trending as expected in all funds.
The following adjustments to appropriations are being recommended: 1) An
additional appropriation of $74,100 for severance pay in the General Fund and
$77,980 for severance pay in the Information Systems Internal Service Funds is
being requested. He noted that this appropriation is due to employees retiring
or leaving the City, and the City was required to pay accumulated sick leave,
deferred time, and vacation leave; and 2) Appropriations in the
Tourism/Convention Fund are being reduced by $67,000 to mitigate projected
revenue shortfalls.
Mr. Strong related that staff is recommending that the General Fund budget
estimate be reduced from $31,215,000 to $31,063,000. He stated that the
recommendation is based on the fact that charges for current services are
expected to be $49,000 less than originally projected and $103,650 in revenue
from other governmental agencies originally projected to be received in this
fiscal year was actually received in June of the prior fiscal year.
With regard to enterprise funds, Mr. Strong stated that staff is further
recommending the following: 1) Connection fee estimates in the Water and
Wastewater Utilities be reduced by $178,000 and $495,000, respectively; and 2)
Revenues in the Tourism/Convention Fund be reduced by $67,000 to reflect lower
than anticipated revenues from in-house promotions, rents and other fees.
Council Member Murray expressed concern regarding Proposition 62 and the City's
potential unfunded liability regarding monies collected after the December 14,
1995, Supreme Court decision. He suggested the establishment of an impound
account for these monies for use against future payment, thereby eliminating a
potential reduction in the City's reserves. He requested staff to prepare an
analysis and recommendation regarding Proposition 62.
In response to Council Member R. Anderson, City Manager Warren related that
Proposition 62 affects the City's Business License Program and Transient
Occupancy Tax (TOT). He noted that these revenues primarily flow to the General
Fund and are essentially being set aside in the reserve.
Council Member R. Anderson requested that the staff prepare a report regarding
Prop 62 which addresses the potential dollar impact on the City.
In response to Mayor Kehoe, City Attorney Wingate explained that TOT is not
refunded directly, but is refunded via future property tax reductions.
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Council Member Murray stressed the importance of specifically setting aside
monies with regard to Proposition 62 and not just relying on General Fund
reserves. Mayor Kehoe concurred and requested staff to address this in the
report to the City Council.
MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge,
to accept the 1995-96 Mid -Year Budget review as presented and adopt Resolution
No. 96-035, a resolution of the City Council of the City of Redding approving and
adopting the 27th amendment to City Budget Resolution No. 95-153 appropriating
$152,080 to cover severance pay cost for employees who have recently separated
from the City.
Voting was as follows:
Ayes: Council Members - R. Anderson, McGeorge, Murray and Kehoe
Noes: Council Members - None
Absent: Council Members - P. Anderson
Resolution No. 96-035 is on file in the office of the City Clerk.
MONTHLY FINANCIAL REPORT FOR ELECTRIC UTILITY
(B-130-070)
Administrative Services Director Starman's Report to City Council dated January
30, 1996, incorporated herein by reference, provided an overview of the Electric
Utility's monthly financial report for December 1995.
It was the consensus of the City Council that future reports be placed on the
Regular Calendar and that the following modifications be made to the monthly
report: add percentage figure regarding cost of energy, and add percentage
figure regarding total operating revenue, and reflect depreciation figures. It
was also the consensus of the City Council that the Electric Utility Department
prepare a monthly report which highlights current issues within the department,
i.e., legislation, etc.
MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge,
that the Electric Utility Monthly Financial Report for December 1995 be accepted.
The Vote: Unanimous Ayes
CANCELLATION OF REDDING RACEWAY PERMIT AGREEMENT
(C-070-100 & A-090-100)
Airports Director George Perry highlighted the Report to City Council dated
January 30, 1996, incorporated herein by reference, regarding the proposed
cancellation of the permit agreement with Redding Raceway. He recalled that the
City approved a permit for Rodney and Marilyn Thomas (dba Redding Raceway) to use
a designated taxiway at the Redding Municipal Airport for "drag racing" effective
March 1, 1990. He stated that the permit was subsequently amended in 1993 to
extend the term.
Mr. Perry related that over the last several months, several individuals have
expressed dissatisfaction regarding the manner in which Redding Raceway has
operated. He noted the primary concerns are the number of races, the condition
of the raceway, and the lack of night events.
Mr. Perry indicated that from staff's perspective, the permit is not being
exercised to its fullest and revenues are low. He noted that in 1995 the
contract only generated $205.00 in revenue for the City and approximately $256.00
the previous year. He indicated that there also appears to be a consensus that
there is a community problem known as "grudge racing" that would be better
handled in a structured environment. It is the opinion of staff that the City
should cancel the permit in order to seek an operator that would improve and
expand the operation.
It is, therefore, the recommendation of staff that the City Council cancel the
permit with Redding Raceway and direct the City Manager to solicit proposals from
potential operators. It is further recommended that the City Manager be
authorized to negotiate an interim agreement pending completion of the
solicitation for a permanent operator, if that becomes necessary.
In response to Mayor Kehoe, Mr. Perry did not believe it would take substantial
capital to make the necessary improvements to the raceway. With regard to
lighting, he indicated that civic groups have expressed an interest in conducting
fund-raising activities for this purpose. He acknowledged that the existing
agreement does not set forth performance standards and will be addressed when the
new contract is negotiated.
City Manager Warren confirmed that the cancellation of the agreement will permit
the City to step back and restructure the agreement to include performance
standards. He noted the primary reason for restructuring the agreement is public
safety, i.e., moving street racing into a structured environment.
MOTION: Made by Council Member R. Anderson, seconded by Council Member Murray,
to cancel the permit with Redding Raceway, direct the City Manager to solicit
proposals from potential operators and authorize the City Manager to negotiate
an interim agreement pending completion of the solicitation for a permanent
operator, if that becomes necessary. The Vote: Unanimous Ayes
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LETTER FROM TRINITY COUNTY PUBLIC UTILITIES DISTRICT - re Appreciation for
Electric Utility Department's Assistance
(A-050-120)
City Clerk Strohmayer stated a letter was received from Rick Coleman, General
Manager of the Trinity Council Public Utilities District, commending and
expressing appreciation to the Electric Utility Department for its assistance
following the January 18, 1996, snow storm.
No action was required.
ORAL COMMUNICATION
(P-150-050-500)
Vi Klaseen expressed concern over a news item she heard regarding Concord Naval
Base being the designated port for receiving nuclear waste which is to be
transported for burial in Idaho. Because of the potential safety hazards
involved in the transportation of this hazardous material, she urged the City
Council to look into the matter and determine whether the material will be
transported through our community.
Mayor Kehoe directed the City Manager to determine whether the Concord Naval Base
may be transporting nuclear waste through the Redding area in route to Idaho for
burial.
URGENCY ITEM - Closed Session
(L-100)
City Attorney Wingate related that subsequent to the posting of the February 6,
1996, agenda, it became known that it would be necessary to hold a closed session
regarding existing litigation in the case of Brockett v. CitX of Redding
Arbitration. He explained that, in accordance with the California Government
Code, in order for the City Council to discuss this matter, it would require a
4/5 vote of the City Council to place the matter on this evening's agenda.
MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge,
to place the following matter on the this evening's agenda: Conference with
Legal Council - Existing Litigation: Brockett v. City of Redding Arbitration.
Voting was as follows:
Ayes: Council Members - R. Anderson, McGeorge, Murray and Kehoe
Noes: Council Members - None
Absent: Council Members - P. Anderson
Mayor Kehoe stated that the City Council would adjourn to closed session pursuant
to California Government Code 54956.9(a) to discuss the following: Conference
with Legal Counsel - Existing Litigation: Brockett v. City of Redding
Arbitration.
At the hour of 8:40 p.m., Mayor Kehoe adjourned the meeting to closed session.
At the hour of 9:20 p.m., Mayor Kehoe reconvened the meeting to regular session.
No action was taken.
ADJOURNMENT
There being no further business, at the hour of 9:20 p.m., Mayor Kehoe declared
the meeting adjourned.
ATTEST:
y C
02/06/96
APPROVED:
[1