HomeMy WebLinkAboutMinutes - City Council - 1996-09-17I
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Redding City Council, Regular Meeting
City Council Chambers
1313 California Street
Redding, California
September 17, 1996 7:00 p.m.
The Pledge of Allegiance to the flag was led by Council Member R. Anderson.
The invocation was offered by Pastor Lonnie Johnson, Living Hope Compassion Ministry.
The meeting was called to order by Mayor McGeorge with the following City Council Members
present: P. Anderson, R. Anderson, Kehoe, Murray and McGeorge.
Also present were City Manager Warren, Assistant City Manager Perry, City Attorney Wingate,
Public Works Director Galusha, Police Chief Blankenship, Development Services Director Swanson,
Administrative Services Director Starman, Finance Officer Strong, Public Works Operations Manager
Russell, Human Resources Manager Bachman, Senior Planner Hanson, Housing Supervisor Garrity,
City Clerk Strohmayer, and Secretary to the City Council Rudolph.
RESOLUTION - Commending Director of Electric Utility Sam Lindley for 20 Years of Dedicated
Service to the City of Redding
(A-050-125)
MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson, that
Resolution No. 96-170 be adopted, a resolution of the City Council of the City of Redding
commending Director of Electric Utility, L. Samuel Lindley, for 20 years of dedicated service to the
City.
Voting was as follows:
Ayes: Council Members - P. Anderson, R. Anderson, Kehoe, Murray and McGeorge
Noes: Council Members -None
Absent: Council Members - None
Resolution No. 96-170 is on file in the office of the City Clerk.
PRESENTATION BY SOROPTIMIST INTERNATIONAL OF REDDING - re Adoption of
Enterprise Park Soccer Fields
(P-050-460-700 & G-100)
Senior Planner Hanson related that staff was approached several weeks ago by the Soroptimist
International of Redding about adopting the soccer fields in Enterprise Community Park and
providing funding in the amount of$41,000 over the next three to five years for improvements.
Kathie Sanchez,President of the Soroptimist International of Redding, stated that this is the 50th year
the Soroptimist International of Redding has been a club in Redding. She explained that the club has
done numerous things to improve services within the community over the years. She indicated that
the Soroptimist International of Redding is excited about adopting the soccer fields in Enterprise
Community Park and providing areas for all ages to enjoy. She related that the club is prepared to
provide funding in an amount not to exceed $41,000 for improvements to the soccer fields.
Cheryl Pennell, Chair of the Soccer Fields Committee, stated that soccer is a growing sport. She
indicated that these improvements will allow more revenue and teams to be brought to the Redding
area.
Mayor McGeorge expressed appreciation to the Soroptimist International of Redding for its very
generous offer.
Kathie Sanchez understood that, based on conversations with Mr. Hanson, there were certain things
which needed to be done in order for the soccer fields to be ready for spring 1997. She related that
if the City Council is prepared to allow the Soroptimist International of Redding to adopt the soccer
fields, the club is prepared to present a check this evening in the amount of$8,204.63.
09/17/96
236
MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson, to accept
the Soroptimist International of Redding's offer to adopt the soccer fields in Enterprise Community
Park and to provide financial assistance in an amount not to exceed $41,000, and accept the initial
check in the amount of$8,204.63. The Vote: Unanimous Ayes
Council Member R. Anderson noted that the Soroptimist International of Redding has been
instrumental in many projects, i.e., the Senior Citizens Facility.
CONSENT CALENDAR
Approval of Minutes - Special Meeting of June 28, 1996
Adjourned Special Meeting of July 2, 1996
Regular Meeting of July 2, 1996
Regular Meeting of July 16, 1996
Special Meeting of July 25, 1996
Special Meeting of August 6, 1996
Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 5, for the period September 3, 1996, through
September 12, 1996, check numbers 236777 through 237202 inclusive, in the amount of
$3,932,161.64, and Payroll Register No. 5, for the period August 25, 1996, through September 7,
1996, check numbers 424310 through 424920 inclusive, and electronic deposit transaction numbers
31898 through 32202, totaling $1,267,888.62, be approved.
TOTAL: $5,200,050.26
Ordinance No. 2159- re Disestablishing the Parking and Business Improvement Area and Repealing
Redding Municipal Code Chapter 6.18
(M-010-200-050)
It is recommended that Ordinance No. 2159 be adopted, an ordinance of the City Council of the City
of Redding disestablishing the Parking and Business Improvement Area established in Section
6.18.150 of the Redding Municipal Code and repealing Redding Municipal Code Chapter 6.18.
Resolution - Extend Market Fest Activities to September 26, 1996
(P-050 & A-110-100)
It is the recommendation of the City Manager that Resolution No. 96-171 be adopted, a resolution
of the City Council of the City of Redding amending Resolution No. 96-132 to approve the request
of Viva Downtown for a one-week extension of its permit to allow the sale, consumption, and
possession of intoxicating beverages on public property in and adjacent to Library Park in conjunction
with the Downtown Market Fest, through September 26, 1996.
Final Report- Economic Development Corporation's Sales& Marketing Program Final Report for
Fiscal Year 1995-96
(B-080-150)
It is the recommendation of the City Manager that the City Council accept the Report to City Council
dated September 11, 1996, incorporated herein by reference, containing the Economic Development
Corporation's Sales and Marketing Program Final Report of Activity for Fiscal Year 1995-96.
Resolution- Appropriating Funds and Establishing Position for Police Officer in Elementary Schools
* (B-130-070 & A-050-270 & P-150-150)
It is the recommendation of the Administrative Services Director that Resolution No. 96-172 be
adopted, a resolution of the City Council of the City of Redding approving and adopting the 9th
amendment to City Budget Resolution No. 96-130 (1) establishing one new police officer position;
and (2) appropriating $64,000 for the police officer.
Annual Wings and Wheels Weekend
(A-090-100)
It is the recommendation of the Development Services Director that the City Council approve IASCO
Flight Center's request, in conjunction with the Northern California Drag Race Association, to
conduct Wings and Wheels Weekend at the Redding Municipal Airport on October 19 and 20, 1996,
contingent upon review by the City Attorney and Risk Manager as to proof of adequate insurance.
09/17/96
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Lease Amendment - Glenn Hawes at Redding Municipal Airport
(C-070-100 & A-090-100)
It is the recommendation of the Development Services Director that the City Council approve the
modification of the lease with Glenn Hawes for farm land at Redding Municipal Airport, specifically
reducing the amount of acreage to 230 acres.
Resolution - Authorizing Submission of Grant Application for Municipal Airport Terminal
Remodeling Project
(G-100-070 & A-090-100)
It is the recommendation of the Development Services Director that Resolution No. 96-183 be
adopted, a resolution of the City Council of the City of Redding authorizing the filing of a Federal
Grant Application for entitlement Airport Improvement Program (AIP) grant monies to accomplish
capital projects at Redding Municipal Airport, specifically the remodel of the Redding Municipal
Airport Terminal building, and authorizing the City Manager to execute the application and all
subsequent documentation to obtain Federal Aviation Administration (FAA) grant monies.
Resolution Setting Public Hearing - Intent to Abandon Street Right-of-Way on Akard Avenue
between Cypress Avenue and Parkview Avenue
(A-010-100)
It is the recommendation of the Development Services Director that Resolution No. 96-173 be
adopted, a resolution of the City Council of the City of Redding declaring its intention to vacate that
portion of the Akard Avenue right-of-way lying between Cypress Avenue and Parkview Avenue (A-
6-96) and setting a public hearing for 7:00 p.m., October 15, 1996.
Development Services Department's Monthly Activity Report
(A-050-250)
It is the recommendation of the Development Services Director that the City Council accept the
Development Services Department's Monthly Activity Report through August 1996 for the following
work areas: (1) Zoning, Subdivision, and General Plan Amendments; (2) Building and Population;
(3) Housing Assistance and Rehabilitation; and (4) General Plan Update.
Resolution - Appropriating CDBG Revolving Loan Funds for New Emergency Repair Program
* (B-130-070 & G-100-030-041 & G-100-080-100)
It is the recommendation of the Development Services Director that Resolution No. 96-174 be
adopted, a resolution of the City Council of the City of Redding approving and adopting the 10th
amendment to City Budget Resolution No. 96-130 appropriating $20,000 for the Emergency Repair
Program.
Resolution- Appropriating Funds for Purchase of Abandoned Vehicle Abatement Vehicle and Three
Mobile Radios
* (B-130-070 & P-150-150)
It is the recommendation of the Police Chief that Resolution No. 96-175 be adopted, a resolution of
the City Council of the City of Redding approving and adopting the 7th amendment to City Budget
Resolution No. 96-130 appropriating$41,500 for the purchase of a vehicle and mobile radios for the
Abandoned Vehicle Abatement Program.
Resolution - Proclaiming October 1996 as Domestic Violence Awareness Month
(A-050-060-600 & P-150-150)
It is the recommendation of the Police Chief that Resolution No. 96-176 be adopted, a resolution of
the City Council of the City of Redding proclaimingOctober1996 as Domestic Violence Awareness
Month.
Resolution - Appropriating Grant Funds for County-wide Imaging System to Combat Domestic
Violence and Accepting Grant Monies
* (B-130-070 & P-150-150 & G-100-070)
It is the recommendation of the Police Chief that Resolution No. 96-177 be adopted, a resolution of
the City Council of the City of Redding approving and adopting the 8th amendment to City Budget
Resolution No. 96-130(1)appropriating$170,835 for the Community Policing to Combat Domestic
Violence Program and (2) authorizing the receipt of$170,835 in related grant monies.
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Award of Bid - Bid Schedule No. 3035, Security Services at Various Locations
(B-050-100 & C-050)
It is the recommendation of the General Services Director that Bid Schedule No. 3035, security
services at various locations, be awarded to North State Security, in the amount of$76,667.16 for
the period October 1, 1996, through June 30, 1997.
Agreement-re Redding Area Water Supply Management Study with Shasta County Water Agency
(W-030-420)
It is the recommendation of the Public Works Director that the City Council authorize an expenditure
of up to $30,000 to the Shasta County Water Agency toward the completion of the Redding Area
Water Supply Management Study and authorize the Mayor to execute the agreement with the Shasta
County Water Agency for said study.
Resolution - Approving Cooperative Agreement with Caltrans
Resolution- Approving Maintenance Agreement with Caltrans
Resolution - Appropriating Funds from the Capital Construction Tax Fund for Wyndham Lane to
Sacramento River Bridge Rehabilitation Project
* (B-130-070 & S-050-100 & S-070-100)
It is the recommendation of the Public Works Director that the City Council adopt Resolution No.
96-178, a resolution of the City Council of the City of Redding approving entering into Cooperative
Agreement No. 02-105 EA-260961, District Agreement No. 02-0005,with Caltrans for roadway
rehabilitation from Wyndham Lane to the Sacramento River Bridge.
It is recommended that Resolution No. 96-179 be adopted, a resolution of the City Council of the
City of Redding approving entering into an agreement with Caltrans for maintenance within State
Highway right-of-way (State Route 273).
It is further recommended that Resolution No. 96-180 be adopted, a resolution of the City Council
of the City of Redding approving and adopting the 11th amendment to City Budget Resolution No.
96-130 appropriating$15,000 for the Rehabilitation Project Wyndham Lane to Sacramento Bridge.
Notice of Completion - Bid Schedule No. 3018, Regent Avenue/Placer Street Drainage
Improvements
(B-050-020 & S-060)
It is the recommendation of the Public Works Director that Bid Schedule No. 3018, Regent
Avenue/Placer Street drainage improvements, awarded to River City Construction, be accepted as
satisfactorily completed and the City Clerk authorized to file a Notice of Completion. The final
contract price is $131,336.85.
MOTION: Made by Council Member Kehoe, 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, Kehoe, Murray and McGeorge
Noes: Council Members - None
Absent: Council Members - None
Resolution Nos. 96-171, 96-172, 96-173, 96-174, 96-175, 96-176, 96-177, 96-178, 96-179, 96-180,
96-183 and Ordinance No. 2159 are on file in the office of the City Clerk.
CONTINUED PUBLIC HEARING - re Proposed Water Rate Increases and Addition of Tiered
Pricing for Water Conservation
(W-030-400)
The hour of 7:00 p.m. having arrived, Mayor McGeorge opened the continued public hearing
regarding the proposed water rate increases and addition of a tiered pricing structure for water
conservation.
The following documents are on file in the office of the City Clerk:
Affidavit of Posting -Notice of Continued Public Hearing
Staff recommendation dated September 9, 1996
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City Clerk Strohmayer advised that no protests were received.
Public Works Director Galusha provided an overview of the Report to City Council dated September
9, 1996, incorporated herein by reference, concerning the proposed water rate increases and tiered
water rates for conservation. He also discussed his handout entitled "What is the impact of the
proposed rate increase to our customers?" He recalled that the City Council, at its meeting of
September 3, 1996, requested staff to prepare a rate alternative which would basically split the
increase between the fixed charge and the commodity charge (Alternative No. 1).
He stated that staff has also prepared an additional alternative which only increases the fixed charge
and prorates the commodity charge based on meter size (Alternative No. 2). He explained that
increasing the fixed charge and leaving the commodity charge will provide a more stable income. He
noted that this would increase rates as follows: residential units or small businesses - $0.46;
commercial retail accounts - $1.15; and industrial or institutional accounts - $7.33.
Mr. Galusha explained that staff's recommendation for tiered water conservation pricing at the last
meeting was based on finding a solution that met the United States Bureau of Reclamation (USBR)
• requirements and had minimum impact on the City's customers. He stated that the month of August
was chosen because it is the highest usage month. A water conservation tier amount based on usage
in August should minimize the impact of the USBR requirement on our customers. He indicated that
staff feels this method will satisfy the USBR requirement, and customers could modify their usage
and, therefore, would not be penalized. The $0.10 surcharge was recommended because staff felt
this was a minimum amount that would be acceptable to the USBR to promote water conservation.
Mr. Galusha indicated that there are questions which the City Council needs to address: (1) Should
water conservation pricing be for all customers or only residential and institutional? and (2) Should
the usage amount for water conservation pricing be set at the point where 95 percent of our
customers do not exceed this point during the month of August? Or, should it be set at some other
percentage or based on another month or combination of months? He stated that after the City
Council's input, staff will return to the City Council within 90 days to formalize a proposal for a
tiered pricing structure for water conservation.
It is the recommendation of staff that the City Council adopt a resolution increasing the fixed monthly
service charge by prorating the increase based on the capacity of the meter in household equivalents
for two years and raise the backflow testing fee from $2.50 to $3.00.
Council Member Murray noted that other utilities are segregating commodity charges from fixed
charges. Given the fact that staff will be coming back in 90 days with a recommendation relative to
a tiered water conservation pricing structure, he recommended that staff look into the possibility of
structuring the water rates differently and segregating the commodity charges from the fixed charges.
This would allow customers to see their fixed charge, as opposed to the commodity charge. He
believed this would better position the City for future water supply negotiations.
Mayor McGeorge determined that there was no one present wishing to address the City Council and
closed the public hearing.
Council Member Kehoe questioned why the backflow testing charge was not being increased in the
second year, as the entity should be self-supporting.
Mr. Galusha responded that without tracking the costs in the first year, staff is not certain an increase
in the second year will be necessary.
For parity purposes, Council Member Kehoe recommended that the tiered pricing scenarios be run
for the entire water utility customer base.
Council Member P. Anderson noted that the Bella Vista Water District imposes a surcharge in the
summer for exceeding a certain usage. When preparing the recommendations for the City Council's
consideration regarding the tiered water conservation pricing structure, she recommended that the
City contact other districts for comparison purposes.
Council Member Murray noted that most complaints received are regarding the water connection fee,
not the actual price of the water itself.
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City Manager Warren noted that the proposed increase would place the City's Water Utility in the
black for the next five years without any additional increases. Based on information which is known
today, he believed the City was in a very good position because of the City Council's and staffs good
management. He noted that other utilities are considering double digit increases.
MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson, that
Resolution No. 96-181 be adopted, a resolution of the City Council of the City of Redding adopting
new water utility rates and charges for service to customers within the Corporate Limits of the City
of Redding and the Buckeye Service Area effective October 1, 1996.
Voting was as follows:
Ayes: Council Members - P. Anderson, R. Anderson, Kehoe, Murray and McGeorge
Noes: Council Members - None
Absent: Council Members - None
Resolution No. 96-181 is on file in the office of the City Clerk.
PUBLIC HEARING - 1995 Grantee Performance Report for the Community Development Block
Grant •
(G-100-030-040)
The hour of 7:00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding the
1995 Grantee Performance Report for the Community Development Block Grant (CDBG).
The following documents are on file in the office of the City Clerk:
Affidavit of Publication -Notice of Public Hearing
Staff recommendation dated September 17, 1996
City Clerk Strohmayer advised that no protests were received.
Housing Supervisor Garrity highlighted the Report to City Council dated September 17, 1996,
incorporated herein by reference, concerning the 1995 CDBG Grantee Performance Report. She
related that during the past year, $1,031,676 in CDBG funds were expended for activities which
benefited the low- and moderate-income persons within the community. She noted that this included
projects which were carried over from the previous year's program.
At the conclusion of the public hearing, it is the recommendation of staff that the City Council accept
the Grantee Performance Report as presented for submission to the Department of Housing and
Urban Development.
Mayor McGeorge determined there was no one present wishing to speak on this matter and closed
the public hearing.
MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, to accept
the 1995 Community Development Block Grant Grantee Performance Report and authorize its
submission to the Department of Housing and Urban Development. The Vote: Unanimous Ayes
LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE - Designation of Voting Delegate
and Voting Alternate
(L-040-150)
MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, to
designate Council Member Murray as the voting delegate at the League of California Cities Annual
Conference in Anaheim on October 13-15, 1996, and Assistant City Manager Perry as the voting
alternate. The Vote: Unanimous Ayes
RESOLUTION - re Shasta Area Safety Communications Agency (SHASCOM) Amended and
Restated Joint Powers Agreement
(C-175-825-700)
City Manager Warren provided an overview of the Report to City Council dated September 12, 1996,
incorporated herein by reference, concerning the Shasta Area Safety Communications Agency
(SHASCOM) Amended and Restated Joint Powers Agreement. He explained that as a result of the
City of Anderson's withdrawal from SHASCOM, the SHASCOM Board of Directors undertook a
close examination and subsequently proposed modification to the Joint Powers Agreement governing
SHASCOM.
09/17/96
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Mr. Warren noted the following three major changes to the Joint Powers Agreement: (1) There will
only be two agencies - the County of Shasta and the City of Redding. He noted that the City of
Anderson will be an ex-officio, but will not be a voting member; (2) The Board of Directors will
consist of administrative personnel from the County of Shasta and the City of Redding: the County
Administrative Officer, the City of Redding City Manager, the Shasta County Sheriff or the
Undersheriff, and the Redding Police Chief or the Redding Fire Chief; and (3) The elimination of the
Executive Board and the Management Council. He believed these changes would provide for a more
efficient SHASCOM operation.
Mr. Warren noted that the Shatsa County Board of Supervisors approved the amended and restated
Joint Powers Agreement today and recommended that the City Council also approve said agreement.
Council Member Murray questioned how the new Board of Directors would report to the elected
officials of both entities.
Mr. Warren replied that in terms of financial reports, both the County and the City would be required
to approve SHASCOM's budget each fiscal year. He indicated that he would also keep the City
Council apprised through written communications.
MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, that Resolution
No. 96-182 be adopted, a resolution of the City Council of the City of Redding approving the Shasta
Area Safety Communications Agency(SHASCOM) Amended and Restated Joint Powers Agreement.
Voting was as follows:
Ayes: Council Members - P. Anderson, R. Anderson, Kehoe, Murray and McGeorge
Noes: Council Members -None
Absent: Council Members -None
Resolution No. 96-182 is on file in the office of the City Clerk.
CIVIC CENTER PROJECT FINANCING
C - ) & C-050-025)
Administrative Services Director Starman provided an overview of the Report to City Council dated
September 6, 1996, incorporated herein by reference, concerning the financing for the Civic Center
project. He recalled that the City Council, at its August 20, 1996, meeting, authorized the selection
of an underwriter, bond counsel, and a financial advisor so the City could proceed with the financing
of the Civic Center project. He related that the Civic Center Subcommittee, consisting of City
Council Members Murray and R. Anderson, met again to discuss the timing and structure of the Civic
Center financing. The Subcommittee has directed staff to move forward with the preparation for the
Civic Center financing in order to be in a position to issue the bonds prior to the November election
if it is financially advantageous to do so. He explained that the Subcommittee believes that
proceeding with the financing prior to the election will enable the City to take advantage of lower
interest rates. He related that staff has met with the underwriter, bond counsel, and the City's
financial advisor, and has developed the following tentative schedule: October 1, 1996, - financing
documents approved in concept by the City Council; October 15, 1996 - pricing of bonds; and
October 30, 1996 - closing. He stated that the City Council would have another opportunity to
consider this issue at its October 1, 1996, meeting.
Mr. Starman explained that staff has discussed the implications of Propositions 62 and 218 with the
underwriter, bond counsel, and the City's financial advisor. He related that most believe that
Proposition 218 will not have a major impact on the City's bond issue or the bond market in general.
He indicted, however, that Proposition 62 is a concern and that the issue will need to be disclosed.
He related that to the extent this issue impacts the City's credit rating, it will be more costly to obtain
insurance for the bond issue. At this time, it is difficult to estimate what impact Proposition 62 will
have on the bond issue. He cited a recent Superior Court case where the courts ruled that there is
a three-year statute of limitations on increases.
Mr. Starman stated that staff is recommending that funds in the amount of$4 million be advanced
from the City's pooled cash and be prorated among all of the City's major funds to assist in the
financing of the Civic Center project. He related that the loan would be structured to yield a market
rate of interest. Therefore, other City funds would not be required to subsidize the project as a result
of the loan.
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Mr. Starman indicated that in order to provide the $16 million needed for the Civic Center project,
the bond issue will be "sized" to provide approximately $11 million in construction proceeds. He
related that if the City decides to fund a portion of the Civic Center via an internal loan, the figure
could be reduced accordingly. He noted that remaining funds for the project will consist of
approximately$2 million from the Redding Redevelopment Agency and $3 million from existing City
resources. He explained that as the City liquidates other assets, the proceeds will be used to prepay
a portion of the debt.
It is the recommendation of both the Civic Center Subcommittee and staff that the City Council
proceed with the sale of bonds to finance the Civic Center project in the time line noted above. It is
further recommended that the City Council authorize an internal loan of$4 million for the Civic
Center which would be prorated among all of the City's major funds.
Council Member Murray believed that the Subcommittee recommendation was to go forward with
the document preparation according to the time line noted, as the documents would be good
whenever the City decided to proceed with the bond sale, and that a discussion would occur at an
October meeting as to whether or not to proceed with the sale of bonds.
Council Member R. Anderson related that the Subcommittee did not take a position relative to
internal borrowing. He asked from which funds the money would be borrowed from and the
associated impacts.
City Manager Warren explained that the internal borrowing would come from all funds. He reiterated
that the interest rate would be the same as the City would receive if the funds were invested. He
stressed the importance of the City remaining whole.
Council Member P. Anderson asked how the internal borrowing would be repaid, the length of the
loan, and any risks associated with internal borrowing.
In response to Council Member Kehoe, Mr. Starman noted that it would cost approximately
$300,000 to issue the bonds, provided they go to sale. He related that if the bonds are not sold,
legally the City would not be required to compensate the bond counsel, as there is no contract in
place. Technically, he stated that out of pocket expenses would be approximately $30,000, plus staff
time, if the bonds were not sold. He noted that the life of appraisals is only about six months.
In response to Council Member R. Anderson, Mr. Starman noted that the cost of the appraisals is a
given, regardless, if the bonds are sold.
Council Member Kehoe did not recommend proceeding with the sale of the bonds until the results
of the November election are known.
Mayor McGeorge concurred that the bonds should not be sold until the Proposition 62 issue is
resolved. He stated that he is not prepared to sacrifice service and employees for the Civic Center
if Proposition 62's worst case scenario were to occur.
Mr. Warren stated that he and the City Attorney have been discussing the issue of Proposition 62 and
the advice they have been receiving appears to support moving ahead with the election and attempting
to resolve the issue of Proposition 62.
Council Member P. Anderson requested an analysis of the interest rate differences and the cost
differences over the term of the bonds. Mr. Starman replied that under a worst case scenario a
change of approximately 50 basis points could be seen between now and January or February.
MOTION: Made by Council Member P. Anderson, seconded by Council Member R. Anderson, to
direct staff to proceed with preparing the necessary bond documentation for the Civic Center Project
and discuss the issue of whether to proceed with the bond sale in October. The Vote: Unanimous
Ayes
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REQUEST BY HABITAT FOR HUMANITY - Waiver of Fees for Construction of Single-Family
Residence
(F-205-600)
Development Services Director Swanson provided an overview of the Report to City Council dated
September 11, 1996, incorporated herein by reference. He related that a letter had been received
from the Habitat for Humanity requesting the City to waive $7,500 in fees for the construction of a
new home in the Redding city limits which will then be purchased by an eligible low-income
household. He noted that the City Council, at its June 18, 1996, meeting, authorized the City
Manager to execute an agreement allocating $10,000 in Community Development Block Grant
(CDBG)funds to be used for the acquisition of one single-family residential lot, which was the total
amount that Habitat for Humanity eventually paid for the property.
Mr. Swanson explained that it has not been the policy of the City to waive fees for nonprofit
organizations. He stated that the causes espoused by the various organizations are laudable, but the
City Council has chosen not to put itself in the position of deciding which organizations will receive
waivers.
It is the recommendation of staff that the City Council deny the waiver of the fees associated with the
construction of a single-family residence.
Mayor McGeorge noted that there was no one present representing Habitat for Humanity wishing
to speak on the matter.
MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, to deny
Habitat for Humanity's request to waive $7,500 in fees associated with the construction of a single-
family residence. The Vote: Unanimous Ayes
ELECTRIC UTILITY RATE ADJUSTMENT
(E-090-100)
Assistant City Manager Perry summarized the Report to City Council dated September 6, 1996,
incorporated herein by reference. He stated that, given the impending receipt of the Electric Utility
audit, staff is requesting the City Council to defer consideration of the electric utility rate adjustment
and the introduction of new rates until the second regular City Council meeting in January 1997.
City Manager Warren concurred with the recommendation to defer consideration of the electric utility
rates. He stated that the City Council would be hearing a presentation from the consultants who
prepared the Electric Utility audit on October 9, 1996, at 7:00 a.m. He noted that the audit will
address many difficult issues, i.e., rates, rate unbundling, management, etc. He suggested that
following the presentation on October 9, 1996, that the City Council appoint a citizen committee to
look at the report and provide a recommendation back to the City Council in 30 to 45 days. He
recommended that the City Council allow him to develop a list of 10 to 15 names for appointment
to this committee. He indicated that Electric Utility personnel would also assist with this very
difficult issue.
Council Member Kehoe requested that each City Council Member have an opportunity to make one
or two appointments to this Committee for the Mayor's consideration.
MOTION: Made by Council Member Murray, seconded by Council Member P. Anderson, to
postpone consideration of an electric utility rate adjustment and introduction of new rates until
January 1997. The Vote: Unanimous Ayes
It was the consensus of the City Council that each City Council Member nominate an individual for
possible appointment to a citizen committee to review the electric utility audit and provide
recommendations to the City Council and requested the City Manager to nominate an additional
seven individuals for inclusion in this committee.
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LETTER FROM U.S. FOREST SERVICE - re Appreciation to Interim Airports Director
(A-050-030)
Mayor McGeorge read a letter received from Charlie McDonald of the United States Forest Service
expressing appreciation to Interim Airports Director Dinger for outstanding professionalism and
service during a recent deployment in Redding.
This was an informational item only.
PUBLIC COMMENT
(C-050-025)
Fran Jenkins, 2625 Sharon Street, asked Administrative Services Director Starman which Civic
Center Committee Members had been asked about the bond issue. Mr. Starman clarified that staff
had not met with members of the Civic Center Committee, but was operating under the parameters
produced by the Committee which dictated a 5 percent reserve requirement.
Ms. Jenkins reminded the City Council that the Civic Center Committee had recommended that
Akard Avenue not be closed until the traffic signal upgrades at Athens Avenue and Park Marina Drive
had been completed to allow for left turns. She recalled that when the report was presented to the
City Council, the City Council agreed to contact the committee if any major changes were made to
the Committee's report.
Assistant City Manager Perry explained that staff decided it was advisable to determine whether
Akard Avenue could be closed prior to proceeding with the building layout. He noted that if Akard
Avenue cannot be closed, it will require that the building be moved.
Council Member Murray clarified that this is just a procedural step and no action would be taken
which is contrary to the Committee's recommendation.
Ms. Jenkins noted that Associate Planner DeMallie did not have knowledge of the Civic Center
Committee's recommendation. She questioned how much consideration had been given to the
Committee's enormous amount of work.
City Attorney Wingate stated that the abandonment would not result in the actual closure of the
street.
City Manager Warren related that staff would include in the next Civic Center Committee newsletter
further information on this matter. He apologized for the confusion.
CLOSED SESSION - Labor Negotiations
(P-100-050-070)
Mayor McGeorge stated that the City Council would adjourn to closed session pursuant to California
Government Code Section 54957.6 to discuss the following: Conference with Labor Negotiator:
Agency Negotiator: Randy Bachman; Employee Organization: Local Union 1245 of International
Brotherhood of Electrical Workers AFL-CIO - Maintenance Employees.
At the hour of 8:07 p.m., Mayor McGeorge adjourned the meeting to closed session.
At the hour of 8:19 p.m., Mayor McGeorge reconvened the meeting to regular session.
No action was taken.
ADJOURNMENT
There being no further business, at the hour of 8:19 p.m., Mayor McGeorge adjourned the meeting.
APP: :VED:
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ATTEST:
City Clerk
09/17/96