HomeMy WebLinkAboutMinutes - City Council - 1996-02-2027
City Council, Special Meeting
City Council Chambers
1313 California Street
Redding, California
February 20, 1996 6:30 p.m.
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, City
Attorney Wingate, Director of Administrative Services Starman, Director of Public
Works Galusha, Director of Electric Utility Lindley, Electric Utility Rates &
Economics Analyst Graves, Fire Marshal Del Carlo, City Clerk Strohmayer and
Secretary to the City Council Rudolph.
ELECTRIC INDUSTRY RESTRUCTURING AND ISSUES FACING PUBLIC POWER
(E-120)
Electric Utility Director Lindley introduced Ken Mellor of R. W. Beck &
Associates. He stated that this evening's presentation was made possible through
the City's affiliation with the Northern California Power Agency (NCPA).
Mr. Mellor's presentation to the City Council regarding competition strategies
for public power highlighted the following areas:
1) Restructuring and Competition:
a) Restructuring started in 1978 with the passage of the Public Utility
Regulatory Policy Act.
b) The 1992 Energy Act stated that energy transmission would be
available to all entities on an equal and fair basis.
C) Federal Energy Regulatory Commission (FERC) issued a Notice of
Proposed Rule Making which will again change what is occurring with
public power.
d) California is moving toward Performance Based Pricing, thereby
making investor-owned utilities more competitive.
2)
California Public Utility Commission (CPUC) Restructuring:
a)
Comment Period ends March 29, 1996
b)
Restructuring under the proposal will begin January 1, 1998
C)
Under the proposal, any customer of an investor-owned utility,
beginning in 1998, will begin to be able to change their utility
supplier via phone, similar to that which is occurring in the
telephone industry. Even though the provider changes, they will
still be using the same wires, the only difference will be the
provider of the power.
d)
By 2002 all customers, including residential, will have the
capability of changing power suppliers.
e)
Investor-owned utilities will have to sell/buy all of their power
through the mandatory pool.
f)
The recovery of utilities' stranded investments will be a major
factor. The PUC is anticipating that the utilities will recover
approximately 90 percent of their stranded investment, with the
stockholders providing the remaining 10 percent. Publicly -owned
utilities do not have stockholders, just bondholders.
3)
CPUC
Market Structure
4)
Direct
Access:
a)
Starting in 1998 five percent of all investor-owned utilities will
have the option of purchasing power from someone else, with the
percentage escalating upward.
b)
Small residential/commercial customers will have aggregators. The
aggregators will come in selling their aggregation services which
will aggregate 8 megawatts of load.
C)
Special metering will be required at the customer's expense.
5)
How
Do Cities Compete
a)
In order to compete, utilities will need to be the low cost
provider.
b)
Price product right.
C)
Maintain a good image and provide exceptional customer service.
6)
California
Rate Comparison
a)
Currently, publicly -owned utilities charge their large commercial
customers an average of $0.0637 per kilowatt hour, while PG&E
charges $0.0493 for the same power.
7)
Specific
Review Areas
8)
Financial
Structuring and Restructuring
a)
Need to restructure debt
b)
Investor-owned utilities will be allowed to develop a competition
transition charge (difference between the market price of their
generation assets and their book price) through 2004. Their rates
will not be permitted to go above their rate as of January 1, 1996,
until the end of 2004, at which time they will drop significantly.
This will cause tremendous problems for publicly -owned utilities.
C)
Recommend that publicly -owned utilities who have stranded assets
develop a competition transition charge, thereby protecting
themselves against the potential loss of customers.
d)
Need to protect publicly -owned utilities advantages, i.e., tax-
exempt financing, freedom of income tax, property taxes, etc.
e)
Some utilities are charging higher than required rates to put aside
money to pay off their high-cost generation.
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ATTEST: /
City Clerk
APPROVED:
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02/20/96
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f)
Investor-owned utilities will be evaluating their assets to transfer
as many assets as possible from generation to their transmission and
distribution systems.
9)
Asset
Management (Property)
a)
60-75 percent of a utility's total cost is related to power supply.
b)
Market surplus energy
C)
Enter into short term power agreements
d)
If an entity has a power supply which is substantially above what
the market is predicted to be, it may be able to sell now, thereby,
placing itself in a better position to compete.
e)
Review entities using the City's rights-of-way in an attempt to
reduce costs.
10)
Needs
and Opportunities
a)
Cost of service must be known.
b)
Competitors' costs need to be known.
11)
Rates
and Pricing
a)
Need to know real time pricing.
b)
Need to know customers better, i.e., Customer Account
Representatives, as well as marketing support, load requirements,
etc.
C)
Consider customers partners in the City's business.
12)
Plant
and Field Operations
a)
Employees will be presenting the image of the utility.
b)
Firms are teaching their employees how to look busy, i.e., waiting
for clearance on a line, etc.
C)
Employees are a utility's most critical asset.
d)
There will be competition for the best employees.
e)
Current work practices, in many cases, will not allow public
utilities to be competitive.
f)
Allowing the employees to take charge will often resolve many
problems.
g)
Many utilities are beginning to both contract out and contract in
work whenever possible.
13)
Warehousing Functions
14)
Purchasing Practices
a)
Some utilities are providing credit cards to their lineman to
purchase merchandise as needed, thereby saving significant money.
b)
In order to be competitive, need to change purchasing practices.
C)
Buy products off the shelf when possible, thereby reducing costs.
15)
Teamwork
a)
The City Council, management, and employees must work in the same
direction.
16)
Management Issues
a)
Need a market focus
b)
Will need to take some risks if utility is going to be competitive.
C)
Eliminate 8:00 a.m. to 5:00 p.m. mentality and instill a job done
mentality.
d)
Evaluate fringe benefits and labor.
17)
Customer Information
a)
Provide better information to customers
18)
Marketing
This
was an
informational item and no action was required.
ADJOURNMENT
There being
no further business, at the hour of 7:00 p.m., Mayor Kehoe declared
the
meeting
adjourned.
ATTEST: /
City Clerk
APPROVED:
yor
02/20/96
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City Council, Regular Meeting
City Council Chambers
1313 California Street
Redding, California
February 20, 1996 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Mayor Kehoe.
The Invocation was offered by Dr. Ernie Johnson.
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, City
Attorney Wingate, Director of Administrative Services Starman, Director of Public
Works Galusha, Acting Planning Director Keaney, Director of Electric Utility
Lindley, Police Chief Blankenship, Electric Utility Operations Manager Ryan, Fire
Chief Wagner, Director of Community Services Gorman, Finance Officer Strong,
Director of General Services Masingale, Electric Utility Rates & Economics
Analyst Graves, Fire Marshal Del Carlo, Senior Planner King, City Treasurer
Linville, Associate Planner Hanson, City Clerk Strohmayer, and Secretary to the
City Council Rudolph.
RESOLUTION - Proclaiming March 7, 1996 as Tree Planting Day, and the Week of
March 3-9, 1996, as Arbor Week
(A-050-060-600 & A-050-220-075)
MOTION: Made by Council Member McGeorge, seconded by Council Member P. Anderson,
that Resolution No. 96-036 be adopted, a resolution of the City Council of the
City of Redding declaring March 7, 1996, as Community Tree Planting/Arbor Day,
and March 3-9, 1996, as Arbor Week.
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. 96-036 is on file in the office of the City Clerk.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 15, for the period February
1, 996, through February 15, 1996, check numbers 229162 through 229765 inclusive,
in the amount of $2,410,350.55, and Payroll Register No. 17, electronic deposit
transaction numbers 27914 through 28144 inclusive, and check numbers 413905
through 414603 inclusive, totaling $1,245,006.73, for the period January 28,
1996, through February 10, 1996, be approved.
TOTAL: $3,655,357.28
PROPERTY/BOILER AND MACHINERY INSURANCE - Redding Power Plant
(R-100-375-550 & R-100-375-325 & E-120-150)
It is the recommendation of the Administrative Services Director that the City
Council accept the Report to City Council dated February 20, 1996, incorporated
herein by reference, regarding the purchase of property/boiler and machinery
insurance for Redding Power Plant from Hartford Steam Boiler, for the period
February 5, 1996, to February 5, 1997, at an annual premium of $134,758.
Resolution - Renewal of Workers' Compensation Claims Administration Contract with
Claims Management, Inc.
(R-100-950)
It is the recommendation of the Administrative Services Director that Resolution
No. 96-037 be adopted, a resolution of the City Council of the City of Redding
extending the term of the agreement for worker's compensation claims
administration service between the City of Redding and Claims Management, Inc.,
for the period April 1, 1996, through March 31, 1997, at an annual fee of
$81,112, representing a three percent increase, plus $2,000 for the computer
link.
Resolution - Ordering Abatement of Unsightly Building and Debris on Property
Located at 3407 Oasis Road, owned by Garland and Mary Gillum
(A-030-070)
It is the recommendation of the Acting Planning Director that Resolution No. 96-
038 be adopted, a resolution of the City Council of the City of Redding approving
the report and findings of the Board of Appeals, and ordering the abatement of
the unsafe and unsightly building and debris on property at 3407 Oasis Road,
owned by Garland and Mary Gillum.
Resolution - Residential Solar Generation Net -Metering Tariff
(E-090-100 & E-120-200)
It is the recommendation of the Electric Utility Director that Resolution No. 96-
039 be adopted, a resolution of the City Council of the City of Redding adopting
a Residential Solar Generation Net -Metering Tariff (solar tariff) pertaining to
the City of Redding Municipal Utilities Schedule of Rates and direct staff to
develop an appropriate interconnection agreement for the Net -Metering Tariff.
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Award of Bid - Bid Schedule No. 2980, Purchase of 12kV Vacuum Circuit Breakers
for the Texas Springs Substation Project
(B-050-100 & E-090-140-800)
It is the recommendation of the Electric Utility Director that Bid Schedule No.
2980, purchase of 12kV vacuum circuit breakers for the Texas Springs Substation
Project, be awarded to the evaluated low bidder, Siemens Energy and Automation,
in the amount of $75,812.63 (excluding spare parts, except for Items 12 and 15
of Bid Group III). Funds for this purchase are included in the 1993 Electric
System Financing Program and the 1995-96 Capital Improvement Program includes
$1.37 million for purchases of major equipment and project design.
Award of Bid - Bid Schedule No. 2974, Pyrotechnic Services at the 1996 Freedom
Festival
(B-050-100 & C-050-050)
It is the recommendation of the Community Services Director that the Bid Schedule
No. 2974, July 4, 1996, fireworks display, be awarded to Boom Boom Productions
in the amount of $40,000. The McConnell Foundation has provided a grant to fund
this service.
Resolution - Summarily Vacating Easement (Cally Court west of Twin Tower Drive -
Dunfri s Subdivision)
(A-010-040 & S-100-155)
It is the recommendation of the Public Works Director that Resolution No. 96-040
be adopted, a resolution of the City Council of the City of Redding summarily
vacating a 15' wide unobstructed vehicular access and public service easement as
shown along the west property line of Lot 8 of the Dunfries Subdivision, Unit 1.
Resolution - Amendment No. 3 to Martin & Kane, Inc. Contract re Engineering
Services Construction of Diestelhorst Bridge Replacement Project
(S-070-050-100)
It is the recommendation of the Public Works Director that Resolution No. 96-041
be adopted, a resolution of the City Council of the City of Redding approving
Amendment 3 to the standard agreement for professional services between the City
and Martin & Kane, Inc. for engineering services, in an amount not to exceed
$65,000, related to the Diestelhorst Bridge Replacement Project.
Payment of FBO Resource Group
(L-100)
It is the recommendation of the Assistant City Attorney that the City Council
authorize the City Manager or Assistant City Manager to approve the payment of
invoices submitted by FBO Resource Group for expert witness services regarding
litigation concerning Shasta Enterprises.
MOTION: Made by Council Member P. Anderson, 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 - P. Anderson, R. Anderson, McGeorge, Murray & Kehoe
Noes: Council Members - None
Absent: Council Members - None
Resolution Nos. 96-037, 96-038, 96-039, 96-040, and 96-041 are on file in the
Office of the City Clerk.
LETTER OF RESIGNATION - Community Development Advisory Committee Member Wilson
Curle
(B-080-600-100)
MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson,
to accept Wilson Curle's resignation from the Community Development Advisory
Committee effective immediately. The Vote: Unanimous Ayes
PUBLIC HEARING - re General Plan Amendment Application GPA -2-94, by Hilltop
Bluffs (Southwest corner of Hilltop Drive and Palisades Avenue)
(G-030-010)
The hour of 7:00 p.m. having arrived Mayor Kehoe opened the public hearing
regarding General Plan Amendment Application GPA -2-94.
The following documents are on file in the office of the City Clerk:
Affidavit of Publication - Notice of Public Hearing
Affidavit of Mailing - Notice of Public Hearing
Planning Commission recommendation dated February 5, 1996
City Clerk Strohmayer advised that no protests were received.
Acting Planning Director Keaney related that Mr. and Mrs. Smaldino were caught
in a snow storm and, therefore, are unable to attend the meeting this evening.
He stated that they have requested that the public hearing be continued to March
5, 1996.
Eihnard Diaz, representing Mr. and Mrs. Smaldino, confirmed that the Smaldinos
were in route, however, they would not arrive in time for the public hearing.
He, therefore, requested that the public hearing be continued an additional two
weeks.
Mayor Kehoe continued the public hearing regarding General Plan Amendment
Application GPA -2-94 to March 5, 1995.
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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)
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing
regarding General Plan Amendment Application GPA -3-95 and Rezoning Application
RZ-12-95.
The following documents are on file in the office of the City Clerk:
Affidavit of Publication - Notice of Public Hearing
Affidavit of Mailing - Notice of Public Hearing
Planning Commission recommendation dated February 5, 1996
Acting Planning Director Keaney provided an overview of the Report to City
Council dated February 5, 1996, incorporated herein by reference, regarding
General Plan Amendment GPA -3-95 to reclassify property located at 351 Hartnell
Avenue from "Residential, 9.0 units per acre" to "Office" and a corresponding
rezoning from 11RM-9" Multiple -Family Residential District to "CO" Office
District.
Mr. Keaney explained that the main purpose of the "Residential, 9.0 units per
acre" designation was to facilitate multiple -family development. The intent was
fulfilled with development of the River Oaks Retirement Residence. Although a
conforming use, the Veteran's Administration (VA) clinic is a medical office use,
not residential. It is staff's opinion that the remaining 1.2 -acre parcel is
better suited for office use because of its orientation to Hartnell Avenue, its
size, relationship to the VA clinic, and surrounding office uses and
designations. With regard to the rezoning, the "CO -15" designation is necessary
to ensure consistency with the minimum 15 -foot landscape setback already
established along Hartnell Avenue.
It is the recommendation of both the Planning Commission and staff that the City
Council take the following action: 1) Approve the reclassification of the
subject property to "Office" and adopt the required resolution; 2) Ratify the
Negative Declarations; 3) Approve the rezoning of the property to 11CO-15" Office
District; and 4) Offer the necessary ordinance for first reading and waive the
full reading of said ordinance.
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 Murray, seconded by Council Member R. Anderson,
that the City Council make the following findings regarding General Plan
Amendment Application GPA -3-95:
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 Board of
Administrative Review on January 17, 1996. The Vote: Unanimous Ayes
MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson,
that Resolution No. 96-042 be adopted, a resolution of the City Council of the
City of Redding amending the City's General Plan by adopting General Plan
Amendment GPA -3-95, reclassifying property located at 351 Hartnell Avenue to
"Office."
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. 96-042 is on file in the office of the City Clerk.
MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson,
that the City Council approving the rezoning of said property to 11CO-15" Office
District and making the following findings regarding Rezoning Application RZ-12-
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 Board of
Administrative Review on January 17, 1996. The Vote: Unanimous Ayes
Council Member Murray offered Ordinance No. 2145 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 (RZ-12-95) to 11CO-15" Office District.
MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson,
that the full reading of Ordinance No. 2145 be waived and the City Attorney be
instructed to read the full title. The Vote: Unanimous Ayes
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PUBLIC HEARING - re Adoption of Household Hazardous Waste Element
(5-020-550 & 5-050-375 & P-150-050-500)
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing
regarding the adoption of the Household Hazardous Waste Element.
The following documents are on file in the office of the City Clerk:
Affidavit of Publication - Notice of Public Hearing
Staff recommendation dated February 13, 1996
City Clerk Strohmayer advised that no protests were received.
General Services Director Masingale provided an overview of the Report to City
Council dated February 13, 1996, incorporated herein by reference, regarding the
proposed adoption of the January 29, 1996, update of the County of Shasta
Hazardous Waste Element of the Integrated Waste Management Plan. He summarized
that the proposed changes include the following: 1) Several developments in the
County for household waste management, 2) Household waste programs implemented
since 1991, and 3) The newly incorporated City of Shasta Lake.
It is the recommendation of staff that the City Council approve the necessary
resolution adopting the proposed revised element.
City Clerk Strohmayer advised that no protests were received.
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 McGeorge, seconded by Council Member R. Anderson,
that Resolution No. 96-043 be adopted, a resolution of the City Council of the
City of Redding approving and adopting the January 29, 1996, update to the County
of Shasta Hazardous Waste Element of the Integrated Waste Management Plan,
pursuant to Public Resources Code Section 41500, et. seq.
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. 96-043 is on file in the office of the City Clerk.
REORGANIZATION OF PUBLIC ACCESS CHANNEL 11
(T-040-350-200)
Community Services Director Gorman provided an overview of the Report to City
Council dated February 14, 1996, incorporated herein by reference, regarding the
proposed reorganization of Public Access Channel 11.
He summarized that staff is recommending that the City Council direct staff to
conclude contract negotiations with the Redding Community Access Corporation
(RCAC) for its management of the station as an access station. He outlined that
the terms of the contract include the following: 1) RCAC would manage the Access
Channel in accordance with the terms of a contract with the City; 2) The term of
the agreement would be for three years, beginning July 1, 1996; would be subject
to annual appropriation; and an annual performance review by the City Council;
3) City compensation to RCAC would decline during the term of the agreement;
$40,000 the first year, $30,000 the second; and $20,000 the third and final year;
4) RCAC would provide to the City various television production services, such
as informational video material regarding City services; 5) The City would
contract with RCAC for operation of the Tourism Channel in the amount of $10,000
per year; and 6) RCAC would assume responsibility for, and ownership of, assets
of the current operation, including equipment, and a cash reserve of
approximately $50,000. He noted that RCAC's ability to replace City funding as
it declines can be substantially bolstered by a proposed offer from Viacom to
over -match City support, in the amount of $50,000 per year for five years.
George Newcom, Executive Director of the RCAC, encouraged the City Council to
endorse staff's recommendation thereby accomplishing the goal of privatization
and advancing the cause of free speech and providing access to the airway for all
to utilize. He explained that the Board of Directors has developed a five-year
financial plan which includes total expenditures in the amount of $450,000
commencing July 1996. He noted that annual expenditures are projected to
decrease from $160,000 to $90,000. Funding sources for this five-year financial
plan include the following: City of Redding - $90,000; Channel 8 - $50,000;
Viacom - $170,000; Reserves - $80,000; and Outside Income $60,000. Assuming
cable television is still a vital commodity in five years, RCAC intends to do a
better job of demonstrating to the City Council its worth to the community. He
related that cost reductions are possible through privatization and increased
producer involvement.
Royal Manion, Chair of the RCAC, on behalf of the RCAC Board of Directors, urged
the City Council to support staff's recommendation which achieves the goal of
privatization. He stated that the Board's vision is based on a five-year
financial plan which will ensure the station's success.
The following individuals spoke in support of staff's recommendation: Ginny
Hunt, 1640 Victor Avenue; Derek Moss, 1640 Victor Avenue; Glenn Maxon, 2945
Anita; Randy Franck, 3187 Veda; and Richard Johnson. The following points were
noted relative to Channel 11:
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1)
Allows individuals to express their opinions, feelings, concerns, or
viewpoints on a given subject and have it broadcast without fear of
censorship or corporate interference;
2)
Promotes local businesses, community events, and governmental meetings;
3)
The following programs have been produced and aired: cooking; fly tieing;
community emergencies, i.e., Fountain Fire; showcasing local artists and
medical techniques; animal and human care; live talk shows with local
politicians, police officers, and even Santa Clause; and local sports
events;
4)
Without Channel 11, producers would be forced to go to advertising
television and censorship;
5)
Individuals within the community are willing to volunteer their time to
the channel;
6)
The valuable programming the City itself will loose if the channel is
turned over to Viacom; and
7)
Enhance channel by adding such features as stolen vehicles; most -wanted
list, etc.
Council Member R. Anderson opined that the proposed recommendation achieves the
goal
of privatization, as well as provides community access.
In response to Council Member Murray, City Manager Warren stated that the final
contract would be brought back for the City Council's consideration and approval.
Mr. Warren conveyed appreciation to the RCAC Board of Directors, Viacom, and John
Gorman for their dedication and assistance in developing this proposal. He
summarized that he supports staff's recommendation for the following reasons:
1) it limits the perceived liability regarding the City's involvement; 2) the
financial end is in sight; 3) it is a contract for services; 4) it allows
programming to be determined by the community; and 5) it accomplishes the goal
of privatization.
Council Member McGeorge stated that he has observed the cooperative interaction
between the RCAC Board of Directors and their dedication to the station. He
opined that because of this, RCAC should be able to achieve their desired goals
and raise the necessary monies.
MOTION: Made by Council Member R. Anderson, seconded by Council Member P.
Anderson, to direct staff to negotiate a contract with Redding Community Access
Corporation for management of public access television for the City Council's
consideration. The Vote: Unanimous Ayes
At the hour of 7:57 p.m., Mayor Kehoe declared the meeting recessed.
At the hour of 8:05 p.m., Mayor Kehoe reconvened the meeting to regular session.
PROPOSED SALE OF FIRE STATION NO. 3
(C-050-275-030 & A-050-140)
Fire Chief Wagner provided an overview of the Report to City Council dated
February 13, 1996, incorporated herein by reference, regarding the proposed sale
of Fire Station No. 3. He explained that the Redding Redevelopment Agency (RRA)
offered to buy Fire Station No. 3 located at 2225 Canyon Creek Road to facilitate
the realignment of Westside Road. He noted that an informal offer to exchange
the fire station for other property needed to facilitate the realignment has also
been received from an adjoining property owner. In addition to the value of the
land, appraised at $130,000, there would be Home relocation costs that would be
borne by RRA.
Chief Wagner explained that the presentation of the proposed offer to the City
Council was delayed pending a report from the Fire Chief as to the effect of the
station closure, how personnel could be assigned, and how coverage in this area
compares to coverage in other areas in the City.
Chief Wagner reviewed existing and proposed fire station boundaries, as well as
existing and proposed fire station eight -minute response times. He concluded
that the City should not eliminate the station, but relocate the station within
this area and construct an additional station on the northeast side of town. He
estimated that the new station built to today's standards would cost about
$700,000 for the relocated station and $950,000 for the additional station. He
noted that revenues from the sale of Fire Station No. 3 would be used toward a
new station, although there is still a substantial difference ($570,000). He
related that for both a relocated station and a new eighth station, it becomes
a multi-year project with funding depending on when "external" or "internal"
funds become available. He noted that one of the crews from Fire Station No. 5
would be moved to the new station, thereby, resulting in no additional personnel
costs.
It is the recommendation of staff that the City Council agree to the sale of Fire
Station No. 3 subject to the station not being closed until a new station is
constructed in the northeast area. It is further recommended that staff be
requested to develop a closure plan for the station and a development plan for
two new stations.
Council Member P. Anderson requested staff to address the City's obligation to
construct a fire station in Tierra Oaks and how it relates to the closure of Fire
Station No. 3 and the City's overall fire coverage.
02/20/96
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In response to Council Member Murray, Mr. Wagner explained that the cost for a
new station is based on a facility comprised of approximately 5,000 square feet
and conversations with entities which have recently constructed such facilities.
He stressed that fire station construction is more extensive due to the required
seismic improvements.
Council Member Murray was concerned about the proposed cost to construct a new
fire station, as well as the need for such a large facility. Given the
requirement for special exhaust evaporation equipment to eliminate diesel fumes,
he also questioned if the sleeping quarters needed to be located in the same
building as the fire engines. He stressed that the decision regarding a new fire
station is cost driven. He emphasized the need to consider the most suitable
location for a fire station in the northeast section of the City, rather than
only considering City -owned property.
Council Member P. Anderson requested staff to reevaluate the fire station
coverage areas.
Council Member Murray further requested that staff consider the station call
volumes when determining station coverage and back up coverage areas, as well as
staffing for the proposed fire station.
Council Member R. Anderson opined that fire stations should be built in the best
location, thereby providing optimum coverage. He concurred that the decision
should not be driven by whether the property is City -owned.
Council Member McGeorge stressed the need to consider the City's obligation to
provide a fire station in the Tierra Oaks area.
It was the consensus of the City Council that staff should prepare a report for
the City Council's consideration which includes the following: 1) The City's
commitment to build a fire station in Tierra Oaks; 2) Contact other agencies
regarding fire station construction costs; 3) The required square footage for
new fire stations; 4) The possibility of redesigning the fire station to
eliminate the need for diesel fume exhaust equipment; 5) The feasibility of
changing fire station boundary areas; 6) The preferable locations for fire
stations; and 7) Evaluate station coverage and back up coverage areas if a new
fire station is constructed.
MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson,
to authorize the sale of the rear of Fire Station No. 3's property for right-of-
way or trade the area for a future sewer connection and street improvements. The
Vote: Unanimous Ayes
JOBS CREDIT/FEE DEFERRAL PROGRAM GUIDELINES
(F-205-600)
Assistant City Manager Perry provided an overview of the Report to City Council
dated February 20, 1996, incorporated herein by reference, regarding proposed
changes to the Jobs Credit/Fee Deferral Program Guidelines, as well as an
application for participation received from Michael Burke representing Mt. Shasta
Spring Water Company.
Mr. Perry summarized that Mt. Shasta Spring Water Company currently employs 16
people and anticipates creating four additional positions following its move to
the Mountain Lakes Industrial Park. Mr. Burke is proposing to construct three
industrial -type buildings on property he owns at that location, with two of said
buildings being leased to other firms. Mr. Burke has an existing industrial
business, also currently located in the County, which will occupy one of the
remaining buildings. This business also anticipates creating four additional
positions upon relocation.
Mr. Perry related that Mr. Burke is requesting that he be allowed jobs credit for
the eight to -be -created positions, as well as the 21 existing positions. He is
asking that this be allowed due to the fact that these positions will all be new
to the City when the businesses relocate to the Mountain Lakes Industrial Park.
In addition to the $29,000 in jobs credit, if approved, Mr. Burke is requesting
that payment of the remaining fees, in the amount of $17,957.35, be deferred for
four years.
Mr. Perry stated that Mr. Burke was advised in August 1995 that the proposal did
not fit within the guidelines of the programs in the following three areas:
number of new jobs; credit for the relocation of existing jobs; and threshold for
fee deferral. Subsequent to Mr. Burke's request, the Shasta Business Council
recommended the following two changes to the program: 1) reduce the threshold
from ten to six new jobs; and 2) reduce the fee deferral from $50,000 to
$30,000.
Mr. Perry indicated that staff understands Mr. Burke's desire to reduce or defer
costs, however, staff does not feel the program should be modified. Staff still
believes that clarification needs to be provided with respect to the relocation
of jobs within the urban area, when construction must occur, for how long job
credits are valid, and if credit is given for jobs created just prior to
expansion.
It is the recommendation of staff that job credits be provided for new jobs
created within one year in advance of construction and for existing jobs either
30 miles beyond the corporate limits, or outside of Shasta County. It is further
recommended that the City Council deny the request for a lower threshold for fee
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deferrals, credits for jobs within the commute area, and eligibility for credits
when less than ten new jobs are created. If the City Council concurs, the action
would be to direct staff to revise the policy and prepare a resolution for the
City Council's consideration.
Council Member R. Anderson stated that he would like to see the applicant achieve
the creation of ten new full-time positions within five years and provide credits
based on a weighted average over that period of time. He also believed that job
credits should be provided to those businesses who relocate to Shasta County,
rather than set a mileage limitation. He recommended including information
regarding the Jobs Credit/Fee Deferral Program in the electric utility billings.
Council Member Murray questioned how the Jobs Credit/Fee Deferral Program applied
to small businesses. Council Member R. Anderson stated that the intent of the
policy was driven by the number of jobs created, regardless of the location.
Council Member Murray opined that the policy as written is more advantageous for
businesses relocating to the City, rather than helping existing businesses. He
believed the policy should meet four tests: 1) be an incentive; 2) equally
applicable to those companies located in Redding and those moving into Redding;
3) provide for growth of companies within the community; and 4) must be
administered by staff. He further stated that the policy is restricted to
manufacturing -type businesses.
Council Member McGeorge stressed the need to develop a policy that is adhered to
and not altered each time an application is received.
Council Member P. Anderson concurred with providing job credits for those
businesses relocating to Shasta County.
Council Member Murray recommended that both the Economic Development Corporation,
as well as the Chamber of Commerce, provided input as to the proposed amendments
to the policy.
Lance Frederickson, representing the Shasta Business Council, had no objection
to the City seeking additional input from other agencies regarding the proposed
amendments.
It was the consensus of the City Council that the City Manager be directed to
make modest changes to the Jobs Credit/Fee Deferral Program for the City
Council's consideration.
PROPOSITION 62 UPDATE
(L-040-300 & T-010-600 & L-070-100)
Administrative Services Director Starman provided an overview of the Report to
City Council dated February 9, 1996, incorporated herein by reference, providing
an update regarding Proposition 62. He explained that Proposition 62 was adopted
by the voters at the November 4, 1986, general election and requires that all new
local taxes be approved by the voters. Soon after Proposition 62 passed, legal
challenges to taxes adopted contrary to its provisions were filed. In several
cases, the Court of Appeals held that the statutory requirement for voter
approval of general taxes was unconstitutional based on two sections of the State
Constitution which prohibits a referendum on a local tax measure. Approval
requirements for general taxes were ruled, in effect, a mandatory referendum
which violated the Constitutional prohibition.
Mr. Starman related that on September 28, 1995, the California Supreme Court
disapproved earlier cases and held that the voter approval requirements of
Proposition 62 were valid. On December 14, 1995, the California Supreme Court
denied the petition to rehear the case; therefore, the decision stands. He
explained that this decision has left many questions unanswered, i.e., is the
decision retroactive to general taxes adopted prior to the decision, whether
taxpayers have any remedies for the refund of taxes paid under a tax ordinance
that was not voter approved, what statute of limitations applies to taxes adopted
without voter approval prior to the decision, and whether the initiative applies
only to new taxes or also to tax increases.
Mr. Starman stated that in November 1990, the City of Redding increased the
Transient Occupancy Tax (TOT) from eight percent to ten percent, and in October
1990, the City increased its Business License Tax by 200 percent. He noted that
through June 30, 1995, the City has collected approximately $3.7 million in
revenue related to the increases in the TOT and the Business License Tax. It is
estimated that the City will receive $820,000 in revenue this fiscal year due to
the increases of the above mentioned taxes. He indicated that the City's true
liability, if any, is not currently known. The League of California Cities is
currently proposing legislation to clarify some of the above issues. The
proposed legislation would "grandfather" in all taxes imposed before December 14,
1995, and would remove any liability for prior tax increases.
It is the recommendation of staff that the City Council direct staff to set aside
all of the tax proceeds attributable to the aforementioned tax increases that
have been or will be collected after December 1995 in a special holding account
until it is determined how the Legislature and the Governor intend to respond to
the California Supreme Court's decision. It is further recommended that all of
the funds be set aside in the General Fund, as opposed to the General Fund and
the Convention Center Fund.
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MOTION: Made by Council Member R. Anderson, seconded by Council Member P.
Anderson, to set aside all of the tax proceeds attributable to the Business
License Tax and Transient Occupancy Tax increases which were collected after
December 1995 in a special holding account within the General Fund until it is
determined how the Legislature and the Governor intend to respond to the
California Supreme Court's decision relative to Proposition 62. The Vote:
Unanimous Ayes
FERC APPROVAL OF PACIFICORP AGREEMENT
(E-120-050 & E-120)
Electric Utility Director Lindley highlighted the Report to City Council dated
February 12, 1996, incorporated herein by reference, regarding the Federal Energy
Regulatory Commission's (FERC) approval of the power sales/exchange arrangement
between the City of Redding and PacifiCorp.
This was an informational item and no action was required.
At the hour of 9:17 p.m., Mayor Kehoe excused Council Member Murray.
LAKE KESWICK SEWER ASSESSMENT DISTRICT NO. 1982-6
(A-170-100-330)
City Treasurer Linville provided an overview of the Report to City Council dated
February 9, 1996, incorporated herein by reference, delinquent assessments within
the Lake Keswick Sewer Assessment District No. 1982-6. She stressed that this
particular bond is not a limited obligation bond. She explained that remaining
debt service payments are due semi-annually with interest only payments over the
life of the bond of $16,244 to $3,250 due January 2 and principal plus interest
payments of $71,244 to $58,250 due July 2 with final maturity in 2000. The
remaining principal and interest of the bond at this date are $275,000 and
$81,244, respectively.
Ms. Linville stated that assessments due for the fiscal year ended June 30, 1995,
totaled $95,701, but only $28,535 was collected on those assessments. Total
unpaid delinquent assessments at this time total $591,858. The delinquent
assessments have resulted in the depletion of the credit reserve fund and require
an advance from the General Fund of $137,955, and require advances from the
City's pooled cash of $336,910 in order to prevent default on the bonds.
Ms. Linville related that the City is currently foreclosing on several parcels
in the assessment district and has taken title to one parcel in lieu of the
assessment lien. The parcel the City has title to is located outside the City.
Taxes, interest and penalties of approximately $30,000 have accumulated on the
City's parcel. Additionally, there is $116,947 in past Lake Keswick sewer
assessments that have not been paid. The remaining future assessments on the
City's parcel total $29,062. Prepayment of these remaining future assessments
is $23,944, representing a savings of $5,000.
It is the recommendation of staff that the City Council elect to fund current
advances, taxes and future payments from the Wastewater Fund. In addition, it
is recommended that the City prepay all future assessments on the City -owned
parcel, thereby reducing total cash outlays by approximately $5,000 over the next
four years.
In response to Council Member McGeorge, City Attorney Wingate stated that, based
on the current property evaluations, the property is worth less than the
assessments due.
Administrative Services Director Starman clarified that the $528,000 reduction
in the Wastewater Fund will impact future Wastewater projects if the full costs
are not recuperated. He acknowledged that it is very unlikely that the City will
recover the entire $528,000.
In response to Mayor Kehoe, Ms. Linville confirmed that there are 16 properties
in arrears, with the largest property owner being Mr. and Mrs. Max Hammon. She
noted that the second largest property owner, Louis Roesner, has signed the
property over to the City. She stated that she did not have the names of the
remaining property owners with her this evening.
Randy Franck, 3187 Veda, was concerned about the proposed widening of the roadway
in front of his home to assist development.
Mayor Kehoe noted that this property is in the County, therefore, the City has
no jurisdiction over the subject roadway.
MOTION: Made by Council Member R. Anderson, seconded by Council Member P.
Anderson, to authorize the funding of current advances, taxes and future payments
regarding the Lake Keswick Sewer Assessment District No. 1982-6 from the
Wastewater Fund and direct that the City prepay all future assessments on the
City -owned parcel. The Vote: Unanimous Ayes
CHURN CREEK ROAD EXTENSION NO. 1 ASSESSMENT DISTRICT 1989-5
* (A-170-120-100 & A-170-050-750)
City Treasurer Linville provided an overview of the Report to City Council dated
February 9, 1996, incorporated herein by reference, regarding the delinquent
assessments within the Churn Creek Road Extension No. 1 Assessment District 1989-
5.
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Ms. Linville explained that the bonds are limited obligation bonds, therefore,
the City is not obligated to advance the funds needed by the district to cover
debt service. If the City does not advance funds to the assessment district, the
bonds will be in default. The source of payment to the bond holders must then
come from foreclosure sale proceeds. She noted that while the City is not
legally obligated to advance funds to prevent a bond default, the City Council
needs to consider whether it is willing to allow the City's name to be associated
with a bond issue in default.
Ms. Linville related that debt service is semi-annual with interest only payments
due March 2 decreasing from the current payment of $18,045 to $2,470 in 2005, and
principal plus interest payments due September 2 increasing from the current
payment of $53,045 to $67,470 at final maturity in 2005. The remaining debt
service payments as of February 20, 1996, are $490,000 in principal and $222,770
in interest. She stated that an interest payment of $18,045 is due to be
transferred to the Trustee at the end of this month for the March 2 payment.
However, cash available in the district's reserve and redemption funds to make
this payment totals only $12,614, leaving a shortfall of $5,431.
Ms. Linville noted that approximately 78 percent of the land within the district
is owned by Redwood Shasta Investors, and approximately that percentage of the
district remains undeveloped. This particular property owner has not paid
assessments (or property taxes) on essentially all of its parcels for one and a
half years. A few other property owners in this district have smaller
delinquencies. Foreclosure proceedings are underway to collect delinquent
assessments totaling $52,433.
It is the opinion of staff that it is desirable to avoid having the City's name
linked to a bond default. It is, therefore, the recommendation of staff that the
City Council approve advancing funds from the General Fund for the March 2 debt
service payment.
In response to Council Member R. Anderson, Ms. Linville stated that Alan Hill has
a financial interest in Redwood Shasta Investors, a limited partnership.
City Attorney Wingate noted that the City is well secured as far as the property
of the parcels within this district, as well as the Tierra Oaks Assessment
District No. 1993-1, thereby making the likelihood of recovering the advanced
monies very good.
City Manager Warren indicated that staff would prepare a report which addresses
the establishment of future assessment districts.
MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge,
to approve advancing funds from the City's General Fund for the Churn Creek Road
Extension No. 1 Assessment District No. 1989-5 March 2 debt service payment. The
Vote: Unanimous Ayes
TIERRA OAKS ASSESSMENT DISTRICT NO. 1993-1
(A-170-050-750)
City Treasurer Linville highlighted the Report to City Council dated February 9,
1996, incorporated herein by reference, regarding delinquent assessments within
the Tierra Oaks Assessment District No. 1993-1. She noted that debt service is
semi-annual with interest only payments due March 2 decreasing from the current
payment of $127,996 to $11,900 in 2014, and principal plus interest payments due
September 2 increasing from the current payment of $232,996 t $351,900 at final
maturity in 2014. The remaining principal and interest of the bond as of
February 20, 1996, is $3,800,000 and $3,098,210, respectively.
Ms. Linville reported that substantially all of the property within this district
is undeveloped. Approximately 98.5 percent of the land within the district is
owned by Tierra Oaks, LTD, (Alan T. Hill, general partner) or Alan T. Hill.
Unpaid delinquent assessments at this date total $449,076. Tierra Oaks LTD's
Chapter 11 bankruptcy prevents the City from proceeding with foreclosure.
Ms. Linville further stated that an interest payment of $127,996 is due to be
transferred to the Trustee at the end of this month for the March 2 payment to
bond holders. However, cash available within the district's reserve fund to make
this payment totals only $102,977, leaving a shortfall of $25,019.
It is the recommendation of staff that the City Council authorize the advancement
of $25,019 from the General Fund for Tierra Oaks Assessment District's March 2
debt service payment.
MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge,
to authorize staff to advance $25,019 from the General Fund for Tierra Oaks
Assessment District No. 1993-1's March 2 debt service payment. The Vote:
Unanimous Ayes
ACCEPTANCE OF DONATED VEHICLE
(G-100 & P-150-150)
Council Member P. Anderson abstained from discussion and voting on this item.
Police Chief Blankenship related that Conrad and Patricia Anderson, former owners
of North Valley Ambulance Company, have offered to donate a retired life support
unit to the Police Department. He stated that staff has determined that the
vehicle can be converted for use both as a mobile command center and by the
Special Enforcement Response Team (SERT). He noted that the City's shop foreman
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found the vehicle to be mechanically sound and in good overall condition. The
donors have installed new tires, repainted the vehicle and made other interior
modifications to meet the Police Department's needs.
It is the recommendation of staff that the City Council accept this donated
vehicle which has a current market value of approximately $12,000.
MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge,
to accept Conrad and Patricia Anderson's donation of a 1987 Ford, one ton truck
with a ten foot box, with a current market value of approximately $12,000.
Voting was as follows:
Ayes: Council Members - R. Anderson, McGeorge and Kehoe
Noes: Council Members - None
Absent: Council Members - Murray
Abstain: Council Members - P. Anderson
CLOSED SESSION
(L-100 & C-070-200 & E-120-150)
Mayor Kehoe stated that the City Council would adjourn to closed session to
discuss the following:
1) Pursuant to California Government Code Section 54956.9(a) - Conference
with Legal Counsel - Existing Litigation: Lois P. Ellis v. City of
Redding, et al., Shasta County Superior Court Case No. 110384;
2) Conference with Legal Counsel - Anticipated Litigation: Initiation of
litigation pursuant to subdivision (c) of Government Code Section 54956.9:
One Case
3) Pursuant to California Government Code Section 54956.8:
a) Conference with Real Property Negotiator
Property: 2439 Sonoma Street, Redding, California
Negotiating Parties: City of Redding and Les Melburg and Galbreath
Company
Under Negotiation: Instructions to negotiator will concern sale
price, terms of payment, and other contractual matters
b) Property: 2440 Sonoma Street, Redding, California
Negotiating Parties: City of Redding and the Galbreath Company
Under Negotiation: Instructions to negotiator will concern sale
price, terms of payment, and other contractual matters
At the hour of 9:38 p.m., Mayor Kehoe adjourned the meeting to closed session.
At the hour of 10:00 p.m., Mayor Kehoe reconvened the meeting to regular session.
MOTION: Made by Council Member McGeorge, seconded by Council Member P. Anderson,
to authorize settlement in the amount of $32,500 regarding the case of Lois P.
Ellis V. City of Redding, et al., Shasta County Superior Court Case No. 110384.
The Vote: Unanimous Ayes
The following action was taken concerning the Conference with Legal Counsel -
Anticipated Litigation:
MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge,
to authorize the City Manager to approve additional design engineering services
with Black & Veatch ($35,000) and bid document preparation ($10,000) for a total
amount not to exceed $45,000 for the construction of Unit 1 Cold Wall
Modification at the Redding Peaking Power Plant. The Vote: Unanimous Ayes
ADJOURNMENT
There being no further business, at the hour of 10:00 p.m., Mayor Kehoe declared
the meeting adjourned to 9:30 a.m., Friday, February 23, 1996, in City Hall
Conference Room A, 760 Parkview Avenue, Redding, California, for a joint meeting
with the Civic Center Committee to consider the joint recommendations of the City
Council Subcommittee and the citizen's Civic Center Committee.
ATTEST:
A
y
APPROVED:
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