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HomeMy WebLinkAboutMinutes - City Council - 1996-10-01 245 City Council, Regular Meeting City Council Chambers 1313 California Street Redding, California October 1, 1996 7:00 p.m. The Pledge of Allegiance to the Flag was led by Council Member Kehoe. The Invocation was offered by Pastor John Krake, Hope Baptist Church. The meeting was called to order by Mayor McGeorge with the following Council Members present: P. Anderson, R. Anderson, Kehoe, Murray and McGeorge. Also present were City Manager Warren, Assistant City Manager Perry, City Attorney Wingate, City Treasurer Linville, Director of Administrative Services Starman, Director of Public Works Galusha, Police Chief Blankenship, Fire Chief Wagner, Development Services Director Swanson, Electric Utility Rates & Economic Analyst Graves, Finance Officer Strong, Director of General Services Masingale, Police Captain Byard, Human Resources Manager Bachman, Interim Airports Director Dinger, Associate Electrical Engineer Ahern, Associate Planner Morgon, Finance Specialist Sundin, Assistant City Clerk Moscatello, City Clerk Strohmayer, and Secretary to the City Council Rudolph. PRESENTATION OF PUBLIC POWER WEEK ESSAY AWARDS (A-050-125 & E-090) Mayor McGeorge and Vice Mayor P. Anderson presented plaques to the following winners of the annual Public Power Week Essay Contest: 1) Enterprise High School 1st Place - Julie Locke 2) Shasta High School 1st Place - Charis Grubbs 2nd Place - Sarah Harper 3) Foothill High School 1st Place - Holly Simmons 2nd Place - Carrie S. Sweet 4) Pioneer High School 1st Place - Erika Wiley PRESENTATION OF COMMUNITY HEALTH ASSESSMENT REPORT - By Shasta County Community Health Committee (P-150-200) Jerry Thacker, Shasta County Health Department, related that the Shasta County Community Health Committee has been conducting a county-wide health study for the past year. She provided the City Council with copies of a press release and facts sheet concerning this study. She also noted that there would be a summary report included in Wednesday's Record Searchlight. She introduced James Finck of the Shasta YMCA and thanked him for his assistance with this study. James Finck explained that the goal of the Community Health Assessment Report is to make Shasta County a healthier place to live. He gave special recognition to Redding Medical Center, Mercy Hospital, and Shasta County for their participation in this important project. Mr. Finck stated that the three goals of the report were: (1) understanding community strengths and build capacity to address local priority health problems; (2) building healthier communities through population-based interventions that maximize resources and demonstrate collaboration; and (3) building broad partnerships to achieve common health outcome goals. He provided a view graph presentation which explained how the report was compiled and how the issues were ultimately prioritized. Mr. Finck recommended that individuals take the time to read this report, which he viewed to be a valuable document for the community. Mayor McGeorge applauded the efforts of the individuals who assisted in compiling the report. He too believed it would be a valuable tool for future use. This was an informational item only. No action was required. 10/01/96 246 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. 6, for the period September 17, 1996, through September 27, 1996, check numbers 237203 through 237797 inclusive, in the amount of $2,324,574.65, and Payroll Register No. 6, electronic deposit transaction numbers 32203 through 32508 inclusive, and check numbers 424921 through 425551 inclusive, totaling $1,302,396.10, for the period September 8, 1996, through September 21, 1996, be approved. TOTAL: $3,626,970.75 Treasurer's Report - August 1996 (A-050-100-600) Total Treasurer's Accountability - $ 83,499,810.73 Total City of Redding Funds, Funds Held in Trust and Funds of Related Entities - $211,536,722.77 ACR133 Report and Cash Reconciliation (F-205-095-650) It is the recommendation of the Finance Officer that the ACR133 Report and Cash Reconciliation for August 31, 1996, 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 September 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. Surplus Property Appraisals (C-070-200) It is the recommendation of the Assistant City Manager that the City Council authorize staff to obtain appraisals on surplus properties which have a plottage value and for which there is an interest by at least one adjacent property owner for acquisition, so that disposition can proceed. Resolution - re Appropriation Limit for Fiscal Year 1996-97 (B-130-070) It is the recommendation of the Administrative Services Director that Resolution No. 96-184 be adopted, a resolution of the City Council of the City of Redding establishing the appropriation limit for fiscal year 1996-97 for the City of Redding at $90,407,731. Amendment - City's Purchasing Manual (B-050-100) It is the recommendation of the Administrative Services Director that the City Council authorize the Purchasing Officer and department directors to approve all purchase orders under $25,000. Set Public Hearing - re Appeal of Planning Commission's Approval of Amendment to Final Plan Review of Planned Development PD-4-86, Shasta Hills Estates (West side of Churn Creek Road and south of College View Drive and Highway 299) (L-010-210-695) It is the recommendation of the Development Services Director that a public hearing be set for 7:00 p.m., October 15, 1996, to consider the appeal of the Planning Commission's approval of an amendment to the final plan review of Planned Development PD-4-86, Shasta Hills Estates. License Agreement - Operation of Courtesy Phone System at Redding Municipal Airport - John Goold dba Cornucopia Gifts (C-070-100& A-090-100) It is the recommendation of the Development Services Director that the City Council authorize the termination of the existing lease with Northwest Advertising for the operation of the courtesy phone system at Redding Municipal Airport. 10/01/96 247 It is further recommended that the City Council approve the License Agreement, requiring a monthly fee of $225.00 per month plus 6 percent of gross sales, with John Goold and Judy Goold dba Cornucopia Gifts for the operation of the courtesy phone system at Redding Municipal Airport commencing November 1, 1996, for a five-year period. Letter of Agreement - FAA Control Tower re Non-Movement Areas at Redding Municipal Airport (A-090-100) It is the recommendation of the Development Services Director that the City Council authorize the Mayor to execute the Letter of Agreement with the Federal Aviation Administration (FAA) Control Tower at Redding Municipal Airport for non-movement areas at Redding Municipal Airport. Resolution - Amending Agreement with Shasta Natural Science Association and Redding Museum and Art Center for Community Oriented Policing and Problem Solving (COPPS) Program (G-100-030-040 & P-150-150) It is the recommendation of the Development Services Director that Resolution No. 96-185 be adopted, a resolution of the City Council of the City of Redding amending the agreement between the City of Redding and the Shasta Natural Science Association and Redding Museum and Art Center for the Community Oriented Policing and Problem Solving (COPPS) Program, thereby extending the term from August 5, 1996, to December 31, 1996, and authorizing the City Manager to sign said amendment. Electric Utility Status Report - Quarter Ending September 30, 1996 (A-050-125) It is the recommendation of the Electric Utility Director that the City Council accept the Electric Utility's Status Report for the quarter ending September 30, 1996. Resolution- Approving Amendment to Memorandum of Understanding with IBEW - Maintenance Employees (P-100-050-070) It is the recommendation of the Human Resources Manager that Resolution No. 96-186 be adopted, a resolution of the City Council of the City of Redding approving the provisions of the Memorandum of Understanding entered into between the City of Redding and the International Brotherhood of Electrical Workers, Local Union 1245, Maintenance Employees, effective September 22, 1996, through September 21, 1999. Notice of Completion - Bid Schedule No. 3020, California Street Sewer Main Replacement (B-050-020 & W-020-575) It is the recommendation of the Public Works Director that Bid Schedule No. 3020, California Street sewer main replacement, awarded to Iron Mountain General Engineering, Inc., be accepted as satisfactorily completed, and the City Clerk be authorized to file a Notice of Completion. The final contract price is $132,563. Initiation of Eminent Domain Proceedings- Sanitary Sewer Line - Sun Oaks Racquet Club, Inc. re Administrative Use Permit No. AUP-19-94 (C-070-010 & L-010-390-100) It is the recommendation of the City Attorney that the City Council approve the use of its power of eminent domain for the acquisition of the necessary right-of-way for the sanitary sewer line regarding Sun Oaks Racquet Club, Inc.'s Administrative Use Permit AUP-19-94. MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. Voting was as follows: Ayes: Council Members - P. Anderson, R. Anderson, Kehoe, Murray& McGeorge Noes: Council Members -None Absent: Council Members - None Resolution Nos. 96-184, 96-185, and 96-186 are on file in the office of the City Clerk. 10/01/96 248 PUBLIC HEARING - re Proposed Spending Plan of State Funds for Citizen's Option for Public Safety (COPS) Program (G-100-170 & P-150-150) Police Chief Blankenship related that the State legislature has provided a framework within which counties and cities can receive allocations from a $100 million appropriation in the Budget Act of 1996. He stated that the legislation provides a formula for distribution of the funds to local entities based on population; and at the present time, it is estimated the City could receive approximately $175,000 for police purposes. Police Captain Byard explained that this money is considered to be one-time funding. After considering several options regarding the utilization of funds, he indicated that staff believes a mobile data system would allow the City to change the way it does business, as well as make existing personnel more efficient. He explained that a mobile data system would allow officers to have direct access to the dispatch center utilizing a personal computer, thereby saving time and reducing air traffic. He stated that the mobile data system is proven technology which is used throughout the state and nation. Captain Byard related that currently a single radio channel is utilized and officers must wait in line to obtain vital information. With the system, the officer would have direct access to the information. The mobile data system would also eliminate the need for officers to write down a call or ask for clarification. Over time, he indicated that because existing staff would be made more efficient, it would reduce the Police Department's and Shasta Area Safety Communication Agency's (SHASCOM) future personnel requests. It is the recommendation of staff that the City Council support the Police Department's proposal to provide funding to determine the requirements for a mobile data system, prepare a request for proposals to obtain system costs, and report the findings back to the City Council. Captain Byard added that staff has made contact with other local agencies which have indicated an interest in assisting with the development of the system. He stated that Shasta County has indicated a willingness to provide as much as $50,000 to assist in developing such a system. In response to Council Member R. Anderson, Captain Byard stated that the information would be transmitted directly from SHASCOM's Computer Aided Dispatching (CAD) directly to the patrol cars, thereby eliminating voice traffic. He indicated that SHASCOM would not require additional equipment to interface with the mobile data system. Because of the interaction with SHASCOM, assistance with determining the proper equipment needs is extremely important. Council Member Kehoe questioned why staff was not recommending the funding to be used for an officer for four years. Captain Byard stressed that this is one-time money and the City would be required to assume the salary of the officer when the funding ceases. He reiterated that the mobile data system is a different way of doing business and makes existing personnel more efficient. He stated that currently staff has to be available to provide information to officers in the field and the mobile data system will allow multiple officers to access the information directly. Chief Blankenship echoed Captain Byard's statement that the mobile data system will reduce his requests for additional personnel because the department will be operating more efficiently. In response to Council Member Kehoe, Captain Byard indicated that preliminary estimates of this equipment range from $250,000 to $750,000. Chief Blankenship indicated that, depending on the cost of the system, it may be necessary to phase in the system. In response to Council Member P. Anderson, Captain Byard stated that the system is utilized by a large number of police and fire agencies, therefore, it should not be necessary to develop specialized software. He indicated that the consultant will advise the City as to the horsepower necessary to operate the system and what type of radio system is required. 10/01/96 249 Mayor McGeorge determined that there was no one present wishing to speak on the matter and closed the public hearing. MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, to support the Police Department's proposal to utilize the Citizens Option for Public Safety (COPS) Program funding in the approximate amount of$175,000 to pursue the possible implementation of a mobile data system, including the preparation of requests for proposals to obtain system costs and reporting back the findings to the City Council. The Vote: Unanimous Ayes APPOINTMENTS - Electric Utility Management Audit Review Committee (A-050-125) Mayor McGeorge recalled that the City Council, at its September 17, 1996, meeting, recommended the appointment of a committee to review the audit and make recommendations back to the City Council. He recommended that the following individuals be appointed to the Electric Utility Management Audit Review Committee: Ron Babish - Costco Warehouse Manager; Bill Holmes - engineer; Ward Gandy- accountant;Fred Weatherill-Chairman, Columbia School District Board of Trustees; Archer Pugh - attorney; Dean Ward - Chamber of Commerce representative; Ken Burns - Wesflex; Jerri Campbell- owner of Letro Products; Dick Johnson - retired finance officer; Elizabeth Cox - Cox & Woodward Photography; Linda Andresen - Financial Planner; Ray Phillips - Pharmaceutical Representative; Sue Arnold-Owner of House of Steno; Tim Nichols - Redding Electric Utility; and Jack Latiolais -Redding Electric Utility. City Manager Warren noted that all the individuals have consented to serve on this committee and should do an excellent job. MOTION: Made by Council Member P. Anderson, seconded by Council Member R. Anderson, to appoint the aforementioned individuals to the Electric Utility Management Audit Review Committee. The Vote: Unanimous Ayes FORMATION OF DOWNTOWN BUSINESS IMPROVEMENT DISTRICT * (B-130-070 & A-170-015-002) Assistant City Manager Perry summarized his Report to City Council dated September 24, 1996, incorporated herein by reference, regarding the establishment of the Downtown Business Improvement District. He indicated a letter was received from Mike Arnold on behalf of the downtown business owners requesting the City's support for the formation of a new Downtown Business Improvement District, along with a petition signed by 60 percent of the businesses in the area. Mr. Perry explained that the City is being requested to do the following things: (1) Initiate the process to form a Business Improvement District(BID); (2)Provide matching funds in the amount of$10,000 to help form the District (the business owners will provide an equal match); and (3) Enter into a contract with Dave Kilbourne for services to form the District. He related that the business owners are currently forming a nonprofit corporation to oversee the District. He noted that the businesses would be assessed, not the property owners. It is the recommendation of staff that the City Council approve the agreement with David Kilbourne for assistance in forming the district. It is further recommended that the City Council adopt the necessary resolution appropriating funds in the amount of$10,000 to be used as matching funds with the District pursuant to the request. He noted one change to the contract depicted in the Report to City Council is that the business owners are requesting that the City pay up to $5,000 before the business owners are required to contribute matching funds. He indicated that this will allow Mr. Kilbourne to be compensated for work performed to date and allow the business owners to utilize monies collected to date to form the nonprofit organization. He stressed that the City would not, however, be required to expend more than $10,000 over the term of the contract. Michael Arnold, 1701 California Street, thanked the City for working with the downtown business owners and accepting the task force's report on the downtown area. He stated that the request before the City Council this evening is a major element of that report. 10/0 1/96 250 Mr. Arnold related that business owners in the downtown area have been working many hours drafting the proposal before the City Council entitled"Proposal for the Establishment of a Downtown Redding Business Improvement District." He stressed that this is just a draft which will receive additional input from the public and business owners. Mr. Arnold opined that the downtown businesses are excited and ready for the formation of this District, as evidenced by the 25 businesses currently working on the formation of the District. Mr. Arnold expressed special appreciation to City Manager Warren, Assistant City Manager, Perry, and Associate Planner Morgon for their assistance and ability to keep the business owners focused. He urged the City Council to accept the report and provide the necessary assistance to make the report a reality. In response to Council Member Kehoe, City Attorney Wingate stated that paying Mr. Kilbourne for work already completed to date would equate to making a progress payment for work done to date on account, which is legally permissible. In response to Council Member R. Anderson, Mr. Perry stated that Mr. Kilbourne's contract would not exceed $17,780 as outlined in the scope of work. In response to Council Member P. Anderson, Mr. Arnold explained that the business owners have collected approximately$5,000 to date toward the District, however, most of that will be applied to the formation of the nonprofit corporation and associated fees. He related that the business owners are concerned about losing momentum if additional monies were immediately required, therefore, they are requesting that the City advance the first $5,000 toward Mr. Kilbourne's contract. MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, to approve the contract with David Kilbourne (Downtown Revitalization Consultants) in an amount not to exceed $17,780 for services associated with the establishment of the Downtown Business Improvement District and direct staff to coordinate the formation of the District with the consultant per the procedure contained in the Report to City Council dated September 24, 1996. The Vote: Unanimous Ayes MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, that Resolution No. 96-187 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 13th amendment to City Budget Resolution No. 96-130 appropriating $10,000 to establish a Downtown Business Improvement District. 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. 96-187 is on file in the office of the City Clerk. SALE OF CIVIC CENTER BONDS (D-050-175-001 & C-050-025) Administrative Services Starman provided an overview of the Report to City Council dated September 19, 1996, incorporated herein by reference, concerning the sale of bonds to finance the Civic Center project. Mr. Starman highlighted the following areas: (1) Internal Financing - Utilize an internal loan of up to $4 million to fund a portion of the Civic Center project; (2) Funds - The internal loan would be from the City's pooled cash and would be prorated among the City major funds as follows: Electric Fund (41.9%); Wastewater Fund (21.4%); Risk Management Funds (16.0%); Water Fund (8.5%); General Fund (7.5%); and Solid Waste Fund(4.7%); (3) Risks Associated with an Internal Loan; (4) Interest Rates- It is anticipated that interest rates relative to bonds could increase by as much as 50 basis points(0.5 percent)in the next six months. It was noted that if this increase occurs, debt service on the external portion of the financing would increase from approximately $520,000 per year to approximately$565,000 per year; and (5) Proposition 62 - It is the recommendation of staff that the City Council consider scheduling a special election early next year and request the voters to reaffirm the business licenses and transient occupancy tax increases. 10/01/96 251 Mr. Starman outlined the following options for the City Council's consideration: (1) If the City Council is prepared to proceed with the Civic Center project in its current form regardless of what may occur with Proposition 62, staff recommends that the City Council direct staff to proceed with the sale of bonds for the Civic Center and to utilize an internal loan of up to $4 million to fund a portion of the project; (2)If the City Council is not prepared to proceed with the Civic Center project in its current form given the fact that the City may be required to repeal the two tax increases, staff strongly recommends that the City Council direct staff to delay issuing bonds for the project; and (3) It is the recommendation of staff to proceed with a special election in the near future to request the voters to reaffirm the business license and transient occupancy tax increases which were implemented in 1990. If the City Council concurs, it would be appropriate to direct the City Attorney to prepare the necessary resolutions to facilitate a special election. In response to Council Member R. Anderson, Mr. Starman related that the bond issue would be in the amount of$12.5 million; however, if an internal loan were utilized, it would be reduced by $4 million. He noted that the calculations performed by staff on the 50 basis point interest rate increase were based on $8 million in bonds to be repaid over a 30-year period. City Manager Warren cautioned that the authorization for staff to proceed with the sale of bonds is one of the last opportunities whereby the project can be delayed. He recommended that the City Council authorize the utilization of a$4 million internal loan. He noted that this would provide very attractive interest rates, as well as allow the loan to be repaid without a prepayment penalty. With regard to Proposition 62, he recommended that the City Council set a date for a special election sometime in early 1997. He related that the process to date on the Civic Center project has been good, and one in which the public has been involved. If at all possible, he urged the City Council to stand together on whatever decision is made. Council Member P. Anderson questioned if waiting to sell the bonds until after an election would impact the Civic Center's development schedule. Mr. Warren replied that the architectural plans would still be moving ahead on schedule. Council Member R. Anderson questioned how much of the annual Civic Center project's debt would be paid by the General Fund. Mr. Starman related that approximately 42 percent of the debt is attributable to the General Fund. He explained that while the debt is split among the various users, the general fund is legally responsible for the entire debt. Council Member Kehoe questioned how much cash the Electric Utility would have in the reserve after the $1.6 million loan and whether anything would be compromised as a result of the loan. Mr. Starman stated that the Electric Utility has $20 million on hand. He noted that it would be difficult for the City to liquidate a loan to itself if the cash were needed immediately, however, the probability of this occurring was unlikely. Council Member Kehoe inquired what the current yield is on the funds which would be used for the $4 million internal loan. City Treasurer Linville stated that the current yield is 5.83%. Mr. Starman stated that the loan would receive at least the yield it would have in the City's cash pool and possibly an additional 25 basis points. He noted that one major advantage of the internal loan is the ability to repay it without a prepayment penalty. He indicated that any repayment would be on a prorata share among the various funds. Council Member Kehoe questioned whether borrowing money from the Electric Utility would cause confusion when rate payers are reading they may experience a 38 percent increase in their rates. Mr. Starman noted that the funds would be invested in some vehicle if they were left in the City's cash pool. Mayor McGeorge recommended that if an election is held that it be scheduled sometime after the holidays. 10/01/96 252 Council Member R. Anderson favored proceeding with the sale of bonds. He related that everything he has read indicates interest rates will increase at least 50 basis points by the first of the year. He stated, however, that if there is a strong feeling among the City Council Members to wait until after an election, he would support that as well. Charlie Forest, A.G. Edwards and Sons, explained that tax exempt rates over the past 12 to 15 months for AAA bonds have ranged from a high of 6.10% to 6.15% to a low of 5.60% to 5.65%. He noted that the State had a comparable bond issue which went for 5.75%. He stated that the Federal Reserve may increase rates at its November meeting as much as one-quarter point. Mr. Forest stated that AAA bonds have fluctuated from 5.35% to 5.40% in 1993 to a high of 6.25% to 6.30%over the past three-year period. He believed the City would be borrowing at around 5.75% to 5.85% as long as there are not any significant changes in the economic indicators. He did not foresee rates going any lower and he did not believe they would increase more than 50 basis points over the next six months. Council Member Kehoe did not favor proceeding with the sale of the bonds until the issues surrounding Proposition 62 were resolved. Mayor McGeorge concurred with Council Member Kehoe. He did not want to sell the bonds and possibly sacrifice services or employees without knowing the outcome of Proposition 62. Council Member P. Anderson stated she could support the sale of the bonds if the feeling among the City Council was unanimous. She stressed the importance of having a unanimous vote on this project. Council Member Murray concurred that there is no sense proceeding with the sale of the bonds if it is not a unanimous decision. Council Member P. Anderson suggested placing an item on future agendas whereby the City Council would receive an update on Proposition 62. Council Member Murray considered the recommendation of utilizing a $4 million internal loan to be a win-win situation. MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, to direct staff to prepare the necessary documents to schedule an election regarding the business license and transient occupancy tax increases at the earliest possible time. The Vote: Unanimous Ayes MOTION: Made by Council Member Murray, seconded by Council Member P. Anderson, to delay action on the issuance of bonds for the Civic Center project and direct staff to bring the matter back before the City Council when additional information is known relative to Proposition 62. The Vote: Unanimous Ayes MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson, to authorize staff to utilize internal borrowing in the amount of$4 million for the Civic Center project. Voting was as follows: Ayes: Council Members - P. Anderson, R. Anderson, Murray and McGeorge Noes: Council Members - Kehoe Absent: Council Members -None At the hour of 8:29 p.m., Mayor McGeorge adjourned the meeting to a special meeting of the Redding Joint Powers Financing Agency. At the hour of 8:30 p.m., Mayor McGeorge reconvened the regular meeting of the Redding City Council. 10/01/96 253 GENERAL FUND MONTHLY FINANCIAL REPORT (B-130-070) Administrative Services Starman provided an overview of the Report to City Council dated September 20, 1996, incorporated herein by reference, concerning the General Fund Monthly Financial Report for August 1996. Total revenue to date ($4.5 million) is slightly above (.8 percent) staff's original cash flow estimate. Expenditures to date (excluding encumbrances) total $5,409,906, or $254,362 below staff's original cash flow projection. It is the recommendation of staff that the City Council accept the Monthly Financial Report for August 1996. MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, to accept the General Fund Monthly Financial Report for August 1996. The Vote: Unanimous Ayes ELECTRIC UTILITY MONTHLY FINANCIAL REPORT (B-130-070) Administrative Services Starman highlighted the Report to City Council dated September 20, 1996, incorporated herein by reference, regarding the Electric Utility Monthly Financial Report for August 1996. It is the recommendation of staff that the City Council accept the Electric Utility Monthly Financial Report for August 1996. MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, to accept the Electric Utility Monthly Financial Report for August 1996. The Vote: Unanimous Ayes BID SCHEDULE NO. 3016 - Wood Chips (B-050-100 & B-050-100-700 & S-020-550) General Services Director Masingale's Report to City Council dated September 24, 1996, recommended that the City Council award Bid Schedule No. 3016, wood chips, to the sole bidder, Wheelabrator Shasta Energy Company, Inc. for $15 per bone dry ton for a three-year period. Council Member Murray stated that he had requested that this item be removed from the Consent Calendar. He noted that there was only one bidder and the price is less than the previous contract. He recommended only issuing a one-year contract. Mr. Masingale indicated that staff believed the price of wood chips would continue to decline. Therefore, a three-year contract was recommended in order to lock in the price. Council Member Murray related that Assembly Bill 1890 (AB 1890) mandated utilities to use alternative energy equal to 3.5%of their annual budgets. He questioned whether staff considered this fact when developing a three-year contract. Mr. Masingale stated that staff did not take the effect of AB 1890 into consideration. He explained that staff was receiving mixed signals as to how the legislation would affect Wheelabrator's operations. Council Member R. Anderson concurred with Council Member Murray. He said that utilities will have to purchase this type of product and he hated to be locked into a three-year contract. City Attorney Wingate advised that if the City Council wanted to only enter into a one-year contract, it would have to either reject the bid and authorize staff to go out for a new bid or authorize staff to negotiate a different contract with Wheelabrator. MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson, to reject all bids associated with Bid Schedule No. 3016, wood chips, and direct staff to negotiate a one-year contract with Wheelabrator. The Vote: Unanimous Ayes 10/01/96 254 ORDINANCE - Amending Animal Regulations and Dog License Fees RESOLUTION - Establishing Spay/Neuter Assistance Program (A-130 & A-130-100 & A-130-140 & A-130-150) City Manager Warren summarized City Clerk Strohmayer's Report to City Council dated September 18, 1996, incorporated herein by reference, regarding proposed changes to animal regulations and dog license fees and the establishment of a Spay/Neuter Assistance Program. Mr. Warren related that the City contracts with the Haven Humane Society (Haven) to handle animal control within the City of Redding. He stated that Haven is requesting the City to do the following: (1)Limit the total number of dogs and/or cats per household to six such animals over the age of four months; (2) Prohibit the sale or give away of animals in front of businesses and along public rights of way, (3) Increase the penalty for unlicensed animals from $5 to $15 as an incentive for more dog owners to license their animals and to reflect the increased costs associated with animal regulation; (4) Adjust the dog license fee to reflect inflation through 1997 when the proposed fees would go into effect, and provide for future adjustments by resolution rather than by ordinance; (5) Amend the definition of a kennel and adjust the kennel license fee from $15 to a sliding scale from $50 to $100, and provide for future adjustments by resolution rather than by ordinance; and (6) Establish a spay/neuter assistance program and impose a $2 surcharge on all licenses for unaltered dogs to fund the program. If the City Council concurs with the changes recommended by Haven, it is recommended that the necessary ordinance be offered for first reading, the full reading of said ordinance be waived, and the resolution implementing the spay/neuter assistance program be adopted. Council Member P. Anderson noted that the Finance Division indicated the General Fund was subdizing the dog licensing program approximately$15,800 annually and the proposed fee adjustment would reduce this subsidy to $10,500 annually. She indicated that she would prefer the program to be self-funded and questioned what the fees would need to be to eliminate any General Fund subsidy. City Clerk Strohmayer related that Haven's original proposal, whereby the ulaltered fees would be doubled, and would virtually eliminate any subsidy. Bob Timone,Executive Director, stated that his comments are reflected in his letter. He offered to answer any questions. Council Member .Murray questioned whether this increase would be considered part of Proposition 62. City Attorney Wingate stated that there was one section which referred to the fee as a license tax, which could make it part of Proposition 218. He recommended that this wording be changed to reflect the fee as a license fee. He explained that Proposition 218 is complicated, however, he did not believe it would apply because it is not property related. City Clerk Strohmayer clarified that the dog licensing fee is considered an administrative fee. In response to Council Member Murray, Administrative Services Director Starman stated that the grandfather provision would only apply to those dogs currently licensed, thereby providing a transition period to reduce the number of dogs/cats to the household limit. Council Member Murray questioned when the committee would be appointed which would review the existing agreement and Haven's practices. Mr. Warren explained that he would like two or three citizens to meet with staff and review Haven's existing contract to ensure that the contract is being followed and to provide suggestions relative to the City's animal control upon the contract's expiration. He anticipated this process would begin sometime in October. Council Member Murray recommended that the committee review the contract to ensure that Haven is in compliance with its contract terms. He also indicated that Haven's adoption criteria should be examined to determine whether it is in keeping with the City's intent at the time it entered into the agreement. 10/01/96 255 Mr. Warren requested each City Council Member to provide him with a list of concerns he/she would like the committee to review, but he recommended that the City Council only deal with the six items before it this evening. Council Member Murray stated that he could only support the ordinance if Section 7.04.150, prohibiting the sale or give away of animals in front of businesses and along public rights of way, was eliminated. He indicated that he would, however, be open to listening to a recommendation from the committee on this subject at some point in the future. Council Member Kehoe related that he was unaware that the City Council had previously taken a position relative to costs, i.e., increasing the penalty fee. Mr. Timone stated that he had changed his original recommendation to increase the penalty fee to $25 based on advice he received from staff. Ms. Strohmayer interjected that staff was attempting to reach a compromise between the current penalty fee of$5 and the proposed penalty fee of$25. To that end, staff recommended that the penalty fee be increased to $15. Council Member Kehoe related that he would be prepared to support a higher penalty fee. Trilvie Wilson, 2381 Wilson Avenue, stated she has lived at her current residence for 27 years and is one of the grandfathered kennels referenced. She related that Haven was at her residence 25 times in 1995 and 8 times in 1996 on unfounded calls. She explained that the City's Planning Division is refusing to allow the City to license any more dogs at her residence. She welcomed anybody to come to her house if they are concerned about the smell. Ms. Wilson went on to state that Mr. Timone has indicated to her on the telephone that she is number one on his list to get rid of dogs. She noted that she has received communications indicating that she had from 26 to 43 dogs. She related that she has had 26, with 15 being champion dogs. Ms. Wilson questioned whether the City was refusing to license her dogs so they could fine her, or possibly come and take the dogs away, even though the City has no limitation on the number of dogs an individual can possess. Ms. Wilson complained that the Planning Division is asking individuals to make statements that she has sold them a dog in order to prove she is a breeder. She refuted this claim and stated that she places the dogs in homes. She questioned why the Record Searchlight accepted ads from individuals to sell puppies if, in fact, it is against the law. She related that her animals are her happiness and they keep her active and out of a wheelchair. Ms. Wilson asked why the ordinance even addressed kennel licenses when she has been told that no one will be granted such a license in a residential area. Ms. Wilson requested that the City Council defer action on the matter for 30 days to allow the community time to discuss the issue with the committee once it is formed. She stated that the proposed ordinance, as written, will force her out of her home. She requested that the City Council either grant additional time to discuss this matter or for the City to purchase her residence. Motion made by Council Member Murray to eliminate Section 7.04.150 from the proposed ordinance died due to lack of second. Mr. Wingate clarified that the term"license tax" used in Section 7.12.080(b) should be changed to read "license fee." In response to Council Member Murray, Ms. Strohmayer related that the Haven Humane Society would be responsible for patrolling the sale or give away of animals in front of businesses and along public rights of way. It was the consensus of the City Council that the Dog Licensing Program should be self-supporting. Council Member P. Anderson questioned the source of money to be utilized for the Spay Neuter Assistance Program. 10/01/96 256 Ms. Strohmayer replied that each unaltered license would be charged an additional $2.00 which would be utilized as "seed money" for the program. The City would issue $20 vouchers, upon request, which would be used toward the cost of having a dog altered. She noted these vouchers would be issued on a first come first serve basis. Council Member Kehoe offered Ordinance No. 2160 for first reading, an ordinance of the City Council of the City of Redding amending portions of Redding Municipal Code Title 7 - Animals, specifically, setting fees by resolution, limiting the number of dogs and/or cats per household to six, prohibiting animals to be given away in front of businesses and in the public rights of way, and setting forth kennel license requirements. MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, that the full reading of Ordinance No. 2160 be waived, and the City Attorney be instructed to read the full title. Voting was as follows: Ayes: Council Members - P. Anderson, R. Anderson, Kehoe and McGeorge Noes: Council Members - Murray Absent: Council Members - None MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, that Resolution No. 96-188 be adopted, a resolution of the City Council of the City of Redding establishing a Spay/Neuter Program for unaltered dogs licensed in the City of Redding. 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. 96-188 is on file in the office of the City Clerk. ROUTINE REPORTS AND OTHER COMMUNICATIONS NOT REQUIRING ACTION LETTER FROM SOUTH END ENTERPRISES - re Appreciation to the Building Division (A-050-250-030) Mayor McGeorge read into the record the letter from South End Enterprises dated September 23, 1996, incorporated herein by reference. The letter expressed appreciation to the Building Division for moving projects in the Downtown Mall and the Pine Street School forward in a timely manner. This was an information item. No action was required. LETTER FROM SHASTA JAZZ FESTIVAL (A-050-110) Mayor McGeorge read into the record the letter from Shasta Jazz Festival Director Tom Riley expressing appreciation to the Community Services Department's staff and other volunteers for their assistance during the 1996 Shasta Jazz Festival. This was an information item. No action was required. PUBLIC COMMENT (C-050-025) Fran Jenkins, 2652 Sharon Street, asked the City Council to compare the Civic Center Committee's recommendations to the architect's conceptual drawings. She related that she attended the Planning Commission's public hearing regarding the closure of Akard Avenue. She indicated that the drawing shown at this meeting was contrary to the Committee's recommendation, whereby the view of the Civic Center from Parkview Avenue was a sea of parking lot. She also noted that specific recommendations were made by the Committee relative to traffic circulation and what was presented at the Planning Commission meeting is unacceptable to the neighborhood in terms of entering and exiting the neighborhood. Council Member Kehoe asked that the City Council be provided with a copy of the Civic Center Committee report for reference. 10/01/96 257 CLOSED SESSION (C-070-200) Mayor McGeorge stated that the City Council would be adjourning to closed session pursuant to California Government Code Section 54956.8 to discuss the following: Conference with Real Property Negotiator: (a) Property - 2439 & 2425 Sonoma Street; Negotiating Parties - City of Redding and Mark D. Ball, M.D.; and Under Negotiation - Instructions to negotiator will concern sale price; and(b)Property- 1439 Pine Street and 1450-1454 East Street (Public Parking Lots 1, 2, and 3); Negotiating Parties - City of Redding and Dr. James Tate; and Under Negotiation - Instructions to negotiator will concern sale price. At the hour of 9:20 p.m., Mayor McGeorge declared the meeting recessed. At the hour of 9:30 p.m., Mayor McGeorge reconvened the regular session. At the hour of 9:30 p.m., Mayor McGeorge adjourned the meeting to closed session. Council Member Murray was absent from closed session discussions. At the hour of 9:50 p.m., Mayor McGeorge reconvened the meeting to regular session. No action was taken. ADJOURNMENT There being no further business, at the hour of 9:50 p.m., Mayor McGeorge adjourned the meeting to Wednesday, October 9, 1996, at 7:00 a.m. in Room 116 of the Redding Convention Center, 700 Auditorium Drive, to consider the Electric Utility Audit prepared by Economic and Engineering Services, Inc. APPROVED: Mayor �r ATTEST: City Clerk 10/01/96