HomeMy WebLinkAboutMinutes - City Council - 1996-11-19 286
City Council, Regular Meeting
City Council Chambers
1313 California Street
Redding, California
November 19, 1996 7:00 p.m.
The pledge of allegiance to the flag was led by Secretary to the City Council Rudolph.
The invocation was offered by Pastor Bob Johnson, Frontline Assembly.
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,
Public Works Director Galusha,Police Chief Blankenship, Fire Chief Wagner, Development Services
Director Swanson, Police Captain Byard, Deputy City Manager Starman, Human Resources Manager
Bachman, Transportation Coordinator Duryee, City Clerk Strohmayer, and Secretary to the City
Council Rudolph.
RESOLUTION - Congratulating Soroptimist International of Redding on 50 Years of Dedicated
Service to the Community
(A-050-060-600)
MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, that
Resolution No. 96-204 be adopted, a resolution of the City Council of the City of Redding
congratulating Soroptimist International of Redding as it celebrates fifty years of service to the
community.
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. 96-204 is on file in the office of the City Clerk.
RESOLUTION - Proclaiming Thursday, November 21, 1996, as "Education Day" in the City of
Redding
(A-050-060-600)
MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, that
Resolution No. 96-205 be adopted, a resolution of the City Council of the City of Redding declaring
November 21, 1996, as "Education Day."
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. 96-205 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. 9, check numbers 241351 through 241781
inclusive, in the amount of$8,113,598.59, be approved and paid, and Payroll Register No. 9, check
numbers, 426774, and 42815 through 428746 inclusive, and electronic deposit transfer numbers
33134 through 33434, for a total of$1,262,424.44, for the period of October 20, 1996, through
November 2, 1996, be approved.
TOTAL: $9,376,023.03
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287
Ordinance No. 2161 - re Rezoning Application RZ-6-96 (2550 Goodwater Avenue)
(L-010-230)
It is recommended that Ordinance No. 2161 be adopted, an ordinance of the City Council of the City
of Redding amending Section 18.06.020 of the Redding Municipal Code relating to the rezoning of
certain real property in the City of Redding to "R-1" Single-Family Residential District (RZ-6-96).
Ordinance No. 2162 - re Rezoning Application RZ-7-96 (19415 Posey Lane)
(L-010-230)
It is recommended that Ordinance No. 2162 be adopted, an ordinance of the City Council of the City
of Redding amending Section 18.06.020 of the Redding Municipal Code relating to the rezoning of
certain real property in the City of Redding to "R-1" Single-Family Residential District and "OS"
Open Space District (RZ-7-96).
Ordinance No. 2163 -re Rezoning Application RZ-2-96(North and south sides of Old Alturas Road,
east of Shasta View Drive)
(L-010-230)
It is recommended that Ordinance No. 2163 be adopted, an ordinance of the City Council of the City
of Redding amending Section 18.06.020 of the Redding Municipal Code relating to the rezoning of
certain real property in the City of Redding to"RI-B 10" Single-Family Residential District and "R-1"
Single-Family Residential District.
Ordinance No. 2164 - re Amending Redding Municipal Code Chapter 2.90 re Conflict of Interest
for Designated Positions
(F-010-150)
It is recommended that Ordinance No. 2164 be adopted, an ordinance of the City Council of the City
of Redding amending Appendix "A" to Redding Municipal Code Chapter 2.90 entitled Conflict of
Interest for Designated Positions of the City, specifically adding Economic Development/Asset
Manager, Deputy Fire Chief, Airports Manager, Information Systems Manager, Electric Utility
Rates/Economic Analyst, Electric Utility Resource Planner, Electric Utility Power Control Manager,
Electric Utility Power Production Manager, and Power Prescheduler, deleting Director of Planning
and Community Development, Director of Parks and Recreation, Science Museum Manager, Director
of Information Systems, and Director of Airports, and moving the position of Human Resource
Manager from Administrative Services to the Office of the City Manager.
Civic Center Financing Status Report
(C-050-025)
It is the recommendation of the City Manager that the City Council accept the status report dated
November 13, 1996, incorporated herein by reference, regarding the Civic Center financing.
Resolution - Appropriating Funds for Serious Habitual Offender Program
* (B-130-070 & G-100-170)
It is the recommendation of the Deputy City Manager that Resolution No. 96-206 be adopted, a
resolution of the City Council of the City of Redding approving and adopting the 12th amendment
to City Budget No. 96-130(1) appropriating $137,044 for the Serious Habitual Offender Program;
and (2) authorizing the receipt of$138,106.
Resolution - Amending City Council Policy 1402 re Collection of Delinquent Utility Accounts
(A-050-060-555 & U-500-100)
It is the recommendation of the Deputy City Manager that Resolution No. 96-207 be adopted, a
resolution of the City Council of the City of Redding amending its Policy No. 1402 entitled
Collection of Delinquent Utility Accounts to allow for the mailing of mandated 48-hour nonpayment
disconnection notices.
Award of Bid - Bid Schedule No. 3044, Remittance Processing Equipment
(B-050-100)
It is the recommendation of the Deputy City Manager that Bid Schedule No. 3044, remittance
processing equipment, be awarded to the apparent low bidder, Standard Register, and staff directed
to issue a purchase order in the amount of$33,073.45, which includes $2,667.00 for maintenance
service.
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288
Resolution - Adopting General Plan Amendment GPA-7-94, by Howard Taylor, and Approving
Negative Declaration (888 Mercedes Lane)
(G-03 0-010)
It is the recommendation of the Development Services Director that Resolution No. 96-208 be
adopted, a resolution of the City Council of the City of Redding amending the General Plan of the
City of Redding by adopting General Plan Amendment GPA-7-94, specifically amending the General
Plan on property located at 888 Mercedes Lane from "Residential, 9.0 units per acre" and
"Greenway" to Residential, 12.0 units per acre" and "Greenway."
Development Services Department's Monthly Activity Report - October 1996
(A-050-250)
It is the recommendation of the Development Services Director that the Development Services
Department's Monthly Activity Report through October 1996 for the following work areas be
accepted: (1)Zoning, Subdivision, and General Plan Amendments; (2) Building and Population; (3)
Housing Assistance and Rehabilitation; and (4) General Plan Update.
Award of Bid - Bid Schedule No. 3045, Primary Splice Boxes
(B-050-100)
It is the recommendation of the Assistant City Manager that Bid Schedule No. 3045, primary splice
boxes, for the period January 1, 1997, to December 31, 1997, be awarded to the low bidder, Jensen
Precast, in the evaluated amount of$99,468.00. Funds for this purchase are included in the 1996-97
budget.
Agreement - Pharmaceutical Care Network (PCN) re Prescription Drug Card Program
(P-100-150)
It is the recommendation of the Human Resources Manager that the City Council authorize the
Mayor to execute the administrative services agreement with Pharmaceutical Care Network (PCN)
for a Prescription Drug Card Program for the period December 1, 1996, through November 30, 1997.
Award of Bid - Bid Schedule No. 3037, One Pickup with Accessories for the Wastewater Utility
(B-050-100)
It is the recommendation of the Public Works Director that Bid Schedule No. 3037, one pickup with
accessories for the Wastewater Utility, be awarded to the lower bidder, Green Valley Ford of
Fairfield, in the amount of$27,250.33. Funds for this purchase are available in the Wastewater Utility
rolling stock replacement fund.
MOTION: Made by Council Member R. Anderson, 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, and McGeorge
Noes: Council Members -None
Absent: Council Members - None
Resolution Nos. 96-206, 96-207, and 96-208 and Ordinance Nos. 2161, 2162, 2163, and 2164 are
on file in the office of the City Clerk.
AGREEMENT - Fehr& Peers Associates, Inc. re Preferred Routes to School Study
LETTER FROM BUCKEYE MIDDLE SCHOOL - re Traffic Safety Issues at Lake Boulevard and
Tamarack Drive
(T-080-300)
Public Works Director Galusha related that following the October 9, 1996, fatal pedestrian accident
involving Tamra Wade which occurred west of Tamarack Drive, the Public Works Department met
with representatives from the Gateway School District to review the accident. He explained that the
Public Works Department is currently preparing a traffic engineering study of the Lake Boulevard
corridor from St. Marks Street to Hyatt Drive to be presented for the City Council's consideration
on December 3, 1996. He indicated that the study includes an analysis of all accidents, traffic
volumes, speed limits, and delays entering intersections. He noted that the Gateway School District
also made suggestions relative to pedestrian safety which will be incorporated into the report.
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Mr. Galusha estimated that a signal would cost approximately $150,000. He stated that staff is
reviewing possible funding sources, which includes discussions with the School District. In addition,
he noted that other locations are being reviewed where a signal may be desirable, i.e., Mistletoe
School. He related that staff is also preparing estimates for additional flasher signals on Lake
Boulevard directly over the crosswalk to increase driver awareness. He explained that the estimates
will include providing school officials access to the signal control for use during special events or
when school is in session.
Mr. Galusha explained that the Regional Transportation Planning Agency (RTPA) has included in its
Overall Work Program for 1995-96 and 1996-97 funding for a Preferred Routes to School Study.
He stated that the City Council at its August 20, 1996, meeting authorized staff to negotiate a
contract with Fehr & Peers Associates, Inc. to develop and prepare the study. He related that the
project is scheduled to commence on December 1, 1996, with an anticipated completion date in
March 1997. He indicated that the goal of the study is to reduce traffic accident rates for school-aged
bicyclists and pedestrians residing within the City.
Mr. Galusha stated that staff is recommending that the City Council approve the contract with Fehr
&Peers Associates, Inc. in an amount not to exceed $39,475 and authorizing the Mayor to sign the
same with regard to the request to install a traffic signal at Lake Boulevard and Tamarack Drive. He
explained that staff is diligently working with the Police Department to prepare the traffic study
report for the City Council's consideration on December 3, 1996.
In response to Council Member Murray, Mr. Galusha reiterated that the study being completed by
Fehr & Peers Associates, Inc. is due to be completed in March 1997; however, staff has discussed
the possibility of moving the Buckeye School site up on the site study list.
MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, to approve the
contract with Fehr& Peers Associates, Inc., in an amount not to exceed $39,475, for the Preferred
Routes to School Study, and authorize the Mayor to execute said contract. The Vote: Unanimous
Ayes
Cindy Nelson, President of the Boosters' Club at Buckeye Middle School, read her presentation dated
November 19, 1996, incorporated herein by reference, concerning the installation of a crosswalk
signal and the repositioning of the crosswalk at Lake Boulevard and Tamarack Drive. She also
reviewed statistics contained in the Lake Boulevard/Tamarack Drive Signalization Study prepared
by the Buckeye Middle School Boosters' Club, incorporated herein by reference. In closing, she
presented the City Council with standard petitions containing 7,110 signatures, as well as unofficial
forms which included 854 signatures from children, requesting that the City Council install a
crosswalk signal as soon as possible to protect children, as well as drivers.
Chris Martin, a student at Buckeye Middle School, stated that he often crosses Lake Boulevard when
a crossing guard is not present. He explained that even if a car stops, pedestrians still have to wait
and see if the other cars will also stop before crossing. He indicated that he is often required to stop
in the middle of Lake Boulevard because cars are going too fast and don't see him or are trying to
slow down. He noted that even when the crossing guard is present, cars often do not stop.
Janelle Nicolay and Carlie McFate, members of the Buckeye Middle School Student Council,
implored the City Council to consider the installation of a stop light. They noted that no one would
ask their child to cross Interstate 5, yet the children at Buckeye Middle School are required to cross
five lanes of traffic traveling between 45 mph and 55 mph. They presented the Mayor with
$1,572.00, which is on deposit at the Tri Counties Bank on Lake Boulevard, to be used toward the
installation of a stoplight at Lake Boulevard and Tamarack Drive. They stated that the children are
concerned about safety and are willing to do their part; however, they want the City to do its part as
well.
Doug Wade, Tamra Wade's father, stated that the Boosters' Club has spent a considerable amount
of time gathering facts and collecting signatures on the petitions. He thanked everyone for the
kindness they have shown toward his family and for the letters which were written to the Redding
Record Searchlight. He related that Lake Boulevard is a four-lane freeway with vehicles traveling
between 50 mph and 55 mph. He indicated that his daughter might be alive today if she had a button
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290
to push to activate a traffic signal. He questioned how many more lives needed to be lost before a
traffic signal is installed. He stated that he, as well as 7,000 other individuals, believe a signal should
be installed immediately before another life is lost.
Roy Reddin, Principal of Buckeye Middle School, provided the City Council with copies of
correspondence from Mr. Duryee, as well as letters from students addressed to the Mayor and the
City Council. He read Superintendent of Schools Charles Menoher's letter dated November 19,
1996, incorporated herein by reference, expressing the Shasta County Board of Education's support
of the Buckeye Middle School Student Council's efforts to obtain a stop light at the intersections of
Tamarack and Lake Boulevard. He explained that when he became principal at Buckeye Middle
School in 1984, there were 180 students, few of whom had to cross Lake Boulevard. He stated that
the student body is currently over 500 students, many of whom are required to cross Lake Boulevard
with only a flashing yellow light. He indicated that a recent survey of the student body showed that
228 students have to cross Lake Boulevard to and from school, 128 cross for after-school activities
with no crossing guard present, 176 cross to go to a friend's house, and 145 cross on weekends or
during school vacations. He acknowledged the fact that the City only installs traffic signals when the
required criteria have been met. He noted that probably only one or two of these required criteria
will be met with regard to a signal at Lake Boulevard and Tamarack Drive; however, he stated that
a broader point of view must be used for this particular intersection. He explained that children
frequently cross Lake Boulevard to utilize the school's playground facilities which are open all year.
Mr. Reddin noted that the Redding Police Department will not provide training to the school's
crossing guards because of the potential liability problems, and he requested that the City Council
review the numbers contained in the signalization study.
Ms. Nelson asked the City Council to put children's safety first in the City of Redding and reach a
conclusion which will satisfy everyone.
Hannah Westphal, President of Central Valley Intermediate Student Council, read her letter dated
November 17, 1996, incorporated herein by reference, which urged the City Council to find the
monies necessary to fund a stoplight at Lake Boulevard and Tamarack Drive.
In response to Council Member Murray, Ms. Nelson stated that she provided copies of her raw traffic
counts to show how the information contained in the signalization study was tabulated.
Council Member R. Anderson noted that many of the individuals related that vehicles traveling along
Lake Boulevard are not observing the posted speed limits. He stated that the one thing the City can
do is evaluate the speed limits along Lake Boulevard and request the Police Department to ensure
posted speed limits are enforced.
Council Member Kehoe thanked everyone for attending the meeting. He stated that he was
impressed by the thoughtfulness, thoroughness, and passion which went into the presentation. He
encouraged staff and the City Council to proceed toward reaching some type of resolution to this
difficult situation as soon as possible.
Council Member P. Anderson concurred with Council Member Kehoe. She noted Las Vegas has
strict speed limit enforcement with large fines in the vicinity of schools. She noted that the City may
wish to implement a similar program on a City-wide basis. She requested staff to include in its report
for the December 3, 1996, meeting an updated priority list for traffic signals. She explained that some
of the traffic signals which have been installed in various areas have been paid for by the developers
and did not require City funding. She also asked staff to consider funding sources other than the
General Fund which might assist in resolving this situation sooner, i.e., Community Development
Block Grant (CDBG) and Redding Redevelopment Agency funds.
Council Member Murray stated he spent one afternoon observing the crossing guard. During that
time, he observed two problems: (1) when children were in the middle of the crosswalk, a vehicle
drove through at 45 mph without slowing down. He stated that he contacted the Police Department
and learned there was not much he could do about the occurrence short of picking the driver out of
a lineup. He noted that there are problems built into our laws; and (2) He observed parents picking
up their children who were not observing the safety of other children leaving school. He
acknowledged the importance of relocating the crosswalk farther north. He requested that staff
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include in its December 3, 1996, report the lawful speed limit in a school area when the yellow lights
are flashing. He stressed that Tamra Wade's death is only one of 11 traffic fatalities which have
occurred in the City this year and not the only area in need of being reviewed. He acknowledged that
the use of certain funds may require specific traffic counts; however, he would like this issue
explored. Mr. Murray invited all those in attendance to attend the December 3, 1996, meeting where
he hoped final closure to this matter would occur.
Council Member P. Anderson stressed that the contract approved this evening with Fehr& Peers
Associates, Inc. will study all school sites within the City.
At the hour of 7:58 p.m., Mayor McGeorge declared the meeting recessed.
At the hour of 8:09 p.m., Mayor McGeorge reconvened the meeting to regular session.
PUBLIC HEARING - re Use of Local Law Enforcement Block Grant Funds from the Bureau of
Justice Assistance
(G-100-070 & P-150-150)
The hour of 7:00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding the use
of Law Enforcement Block Grant Funds from the Bureau of Justice Assistance.
The following documents are on file in the office of the City Clerk:
Affidavit of Publication -Notice of Public Hearing
Staff recommendation dated November 6, 1996
City Clerk Strohmayer advised that no protests were received.
Police Captain Byard explained that the City was informed in June that it was eligible to receive
$102,975 under the Local Law Enforcement Block Grant Program, with the City providing a 10
percent local cash match. He recalled that the City Council, at its October 1, 1996, meeting,
approved the Police Department's plan to utilize the state funding available under Assembly Bill 3229
(AB3229), as well as this federal block grant funding for the implementation of a mobile data project.
He stated that the planning for this project is being done in cooperation with the Shasta County
Sheriff's Office and the Anderson Police Department.
Captain Byard indicated that the City is required to hold a public hearing regarding the proposed use
of the funds under the Local Law Enforcement Block Grant Program. The Report to City Council
dated November 6, 1996, incorporated herein by reference, contained an overview of the mobile data
project.
Police Chief Blankenship noted that if the City receives the desired system, it should save 1.5 man
hours per officer per day, thereby allowing officers to spend time on other areas of law enforcement.
Mayor McGeorge determined that 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 Murray, that Resolution
No. 96-209 be adopted, a resolution of the City Council of the City of Redding authorizing the
acceptance of Local Law Enforcement Grant Funds from the Bureau of Justice Assistance in the
amount of$102,975.
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. 96-209 is on file in the office of the City Clerk.
MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, that Resolution
No. 96-210 be adopted, a resolution of the City Council of the City of Redding approving and
adopting the 17th amendment to City Budget Resolution No. 96-130 to appropriate $11,442 for
matching funds for the Local Law Enforcement Block Grant.
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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. 96-210 is on file in the office of the City Clerk.
REAPPOINTMENTS - Community Development Advisory Committee
(B-080-600-100)
MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson, to
reappointment the following individuals to the Community Development Advisory Committee for
four-year terms expiring December 1, 2000: Jeff Swanson, Leo Graham, Rick Bosetti, Jim Elkins,
Larry Sterk, Suzanne Kowalewski, Sherrill Bambauer, and Linda Morgan. The Vote: Unanimous
Ayes
REQUEST TO SUPPLY BENEFICIATED GLASS BY KNAUF FIBER GLASS GmbH
(E-050)
Deputy City Manager Starman reviewed the Report to City Council dated November 11, 1996,
incorporated herein by reference, concerning Knauf Fiber Glass' request for the City of Redding to
provide cullet (recycled glass) for use in the manufacturing of fiberglass. This partnership would
require the City to secure 20,000+ tons of recycled glass annually from other public and private
entities throughout Northern California and augment its existing Solid Waste Transfer
Station/Materials Recovery Facility on Abernathy Lane in order to process the recycled glass into
cullet.
Mr. Starman highlighted the major provisions of the proposed contract as follows: (1) Knauf will
agree to purchase a minimum of 20,000 tons of cullet from the City per year annually starting in 1999
at or above the City's cost of production; (2) The City will purchase and operate the equipment
necessary to produce the cullet for Knauf, (3) Knauf has agreed, at a very minimum, to pay all of the
City's costs associated with producing the cullet; thereby, leaving no financial exposure to the City
or the rate payers; (4) The contract has been drafted to eliminate any financial exposure to the City
or the rate payers; (5) Knauf has agreed to pay the City $72,000 over a one-year period to offset a
portion of the start-up costs associated with the project; and (6) The City can, at its option, sell the
cullet processing"enterprise" in the future.
City Manager Warren noted that the threshold question is whether the City should be entering into
this type of contract in the first place. He recalled that when he originally heard about Knauf's
proposal it consisted of bringing $100 million in business to the City of Shasta Lake, including 150
jobs. He noted that when he was hired, the City Council stressed the need to have a City Manager
and staff who were innovative and progressive in improving the area's economy and bringing jobs
to the City. Given this fact, when Knauf asked the City to assist in the acquisition of glass, staff set
out to make Knauf's proposal a reality, which included visiting a similar type operation in Canada.
Mr. Warren noted that reasons not to proceed with entering into the proposed contract include: (1)
it will involve a tremendous amount of personnel time to get the operation running; and (2) some debt
will be incurred, depending on the City's success at obtaining grants and loans. He noted that these
issues are covered in the contract.
Mr. Warren went on to note that reasons to enter into this type of arrangement include: (1) Knauf
has requested the City to provide this service because a governmental entity is better at obtaining
grants and loans; (2) the City already has a recycling program; (3) a public entity's books are open
to review at all times; (4) eliminates Knauf having to deal with a monopoly; (5) there are no other
businesses in the area set up to accommodate this type of request; (6) the City can channel glass from
the landfill; and (7) bring a new business and jobs to the area.
Mr. Warren noted that there is no guarantee that another glass recyclerlwill hire individuals locally
to supply the necessary glass. With the City entering into this agreement, three or four individuals
will be hired and, most likely, a local trucking firm will be utilized to ship the glass. As outlined in
the Report to City Council, there will be a profit which goes back to the community.
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It is the recommendation of staff that the Council approve the contract with Knauf and authorize the
Mayor to sign same.
City Attorney Wingate interjected that he had a conversation with Council Member Murray about
the proposed contract. He stated that Council Member Murray raised some good points, i.e.,
determining market price, and first right of refusal. While he did not view these concerns as"deal
breakers," he indicated that it would be necessary to discuss them with Knauf.
Jim Zauher, Economic Development Corporation, stated that the original concept of the City
providing this service was driven by Knauf itself through its desire to have a quality material supplier.
Council Member Murray disagreed that the proposed contract fully protects the City. He
recommended that the City Attorney address the issues he raised in their conversation and bring the
contract back for further consideration. He believed there needed to be a discussion regarding the
propriety of providing this type of service. He also expressed concern with the fact that this
particular process had gone so far without the City Council being consulted. He wondered whether
it might still be possible, using both the EDC's and the City's resources, to encourage a second
company to create a glass facility in the area based on the strength of the Knauf agreement. He
questioned at what point is it appropriate for the City to compete with private industry.
Council Member P. Anderson countered that the City would not be competing with a local business,
as the closest business is located in the Bay area. Based on the assumption that Knauf has already
spoken with this company, she believed if the Bay area company was interested, it would have
presented a proposal to Knauf. Because the City is mandated to recycle glass, she indicated that the
City would be doing the north state a favor by entering into this contract. She related that once it is
a demonstrated function, private industry can step in and take over the operation.
Council Member R. Anderson believed it was necessary to take each situation which involves the City
entering into competition with the private sector on a case-by-case basis. While he did not favor
government competing with the private sector, he acknowledged that there are exceptions. He
viewed the City's agreement to supply glass as a major ingredient in Knaufs decision to locate to the
City of Shasta Lake. He complimented staff for their ability to move so expeditiously with the
proposal. While he favored proceeding with approval of the contract, he believed the matter should
be brought back for consideration after the necessary revisions have been made.
Council Member Kehoe applauded the efforts of City staff, the EDC, and the City of Shasta Lake.
He believed that Knauf locating in the City of Shasta Lake will be good for the entire community.
He favored moving forward with the contract in an expeditious manner.
Mayor McGeorge concurred that the location of Knauf in the City of Shasta Lake will benefit the
entire north state. With the safeguards built into the agreement, he favored proceeding with
approving the agreement once Council Member Murray's suggestions are reviewed and, if
appropriate, incorporated into the agreement.
Council Member Murray questioned the point when staff should consult the City Council on
proposals such as this one. Mayor McGeorge recommended discussing Council Member Murray's
concerns at a workshop or some future meeting.
Mr. Warren noted that there is a great deal of confidentiality in negotiations such as this, thereby
making it difficult to discuss at a City Council meeting.
Council Member Kehoe did not believe staff had free reign with regard to the Knauf proposal. He
noted that he had received one or two briefing papers and the City Manager had kept the Mayor
informed on the progress.
Council Member R. Anderson was comfortable with staff pursuing proposals, such as this, as long
as the Mayor is brought into the loop and kept informed.
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MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, to approve
the contract with Knauf Fiber Glass GmbH in concept, direct the City Attorney to review the contract
and incorporate any necessary changes, and bring back the agreement for final approval at the
December 3, 1996, City Council meeting. The Vote: Unanimous Ayes
AGREEMENT WITH NORTHERN CALIFORNIA DRAG RACING ASSOCIATION - re
Operation of Dragstrip at Redding Municipal Airport
(C-070-100 & A-090-100)
Development Services Director Swanson reviewed the Report to City Council dated November 8,
1996, incorporated herein by reference, regarding the Northern California Drag Racing Association's 111
(NCDRA) proposal to operate the dragstrip at the Redding Municipal Airport and the principal
features of the proposed agreement.
Mr. Swanson noted that the NCDRA made a substantial investment of private funds this past summer
at the dragstrip. He stated that the NCDRA has allowed all motor sports to use the facility.
George Lewellen, President of the NCDRA, provided a brief history of the dragstrip. He related that
in 1996 the NCDRA held 28 races at the dragstrip. These races consisted of 15 Saturday night street
races, which grossed $40,000, and 13 day races, which grossed $36,000. He indicated that the City
received $4,500 of these proceeds. He noted that NCDRA raised $50,000 from its members and
local businesses which was used for facility improvements. He explained that there is an opportunity
to build a first-rate facility which could generate between $250,000 and $500,000 per year, or it can
remain a local dragstrip.
Mr. Lewellen stated that the current proposal does not require night races, but NCDRA will still try
and hold such events. He explained that contractors donated lights for use until the contracting
season started, however, the lighting was barely adequate. He noted that NCDRA has several
members who are contractors and are willing to install lighting systems at half or one-third the cost
if it were put out to bid. He requested that the City Council accept the proposal before it for
consideration this evening and direct staff to work with NCDRA in developing a financing agreement
which would allow NCDRA to borrow money from the City for the necessary improvements and
repay said loan over a ten-year period. He stressed that the proposed improvements will provide
economic benefits to the City.
Paul Warner,NCDRA member, conveyed the impact motor sports has on our society. He cited the
contribution Kool April Nites has made to the community and encouraged the City Council to look
ahead and see what the dragstrip could offer to the community with the proposed improvements.
John Gamble stated that improvements to the dragstrip over the years have been slow and minimal.
He conveyed the enthusiasm he witnessed this past year by racers of all ages. He stressed that
NCDRA does not want a hand out, but is merely trying to achieve a situation where youth benefit
from safe education and are not street racing.
Kristy Coleman stated that she participates in junior dragstrip racing. She asked the City Council to
keep the dragstrip open, thereby helping to keep youth away from drugs and alcohol.
City Manager Warren acknowledged the investment NCDRA has already made at the dragstrip. He
stated that the funding source for such a loan will not be known until after the February 4, 1997,
election. He recommended that if the City Council wanted to proceed with advancing funds to the
NCDRA that it be done on an incremental basis. He viewed the two top priorities as lighting and
water, which total approximately $50,000.
Council Member R. Anderson supported approving the lease, but was not prepared to act on
advancing funds to the NCDRA until after the February 4, 1997, election.
Airports Manager Dinger supported the proposal before the City Council this evening. He stated that
he was impressed with the enthusiasm NCDRA has shown in its operation of the dragstrip this past
year.
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In response to Council Member Murray, Mr. Dinger related that the General Fund subsides the
Airports Division $142,000 annually.
Council Member Murray noted that the airports$142,000 per year subsidy impacts the General Fund.
He stated that, based on the figures provided by NCDRA, once the dragstrip is brought up to the
proposed standards, there would be a net return to the City of $60,000 to $120,000. He was
interested in hearing further from the City Manager about the logistics of advancing funds to
NCDRA. He did not view the request as a loan, but a means to ultimately offset the bottom line
subsidy being provided by the General Fund to the Airports Division.
Council Member Kehoe opined that a recommendation to approve the agreement without intending
to make the track safe seems to be pointless.
Mr. Swanson related that evening street racing would not occur without adequate lighting. Weather
permitting, daytime races will occur when lighting is not a concern. He stressed safety is of utmost
importance to all parties.
In response to Council Member Kehoe, Mr. Swanson stated that high powered cars will not be
permitted on the track until it has been resurfaced.
Council Member R. Anderson reiterated that he would be willing to discuss the possibility for
advancing monies for track improvements, provided the February 4, 1997, election measure passes.
Council Member Murray was not certain that the requested funding would need to be advanced from
the General Fund and was interested in seeing further information from staff. He did not believe that
the City Council's decision should be based on the outcome of the election.
In response to Council Member Kehoe, Mr. Lewellen stated that the track is inspected annually to
ensure it meets minimum standards. He related that the dragstrip will last a couple more years;
however, the faster cars will be excluded from competition until improvements are made.
In response to Council Member Kehoe, Mr. Lewellen stated that it is currently possible to operate
the dragstrip without capital improvements.
Council Member Murray asked staff to prepare a report outlining possible sources of funds to
accommodate NCDRA's request. He requested that the report focus on the reduction of the annual
subsidy which the General Fund is currently providing to the Airports Division.
Council Member R. Anderson cautioned that by advancing money to NCDRA, the City is being
placed in the position of being a banker and there is a risk that repayment will not occur.
MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, to approve
the License Agreement between the City of Redding and the Northern California Drag Racing
Association to operate the dragstrip at the Redding Municipal Airport for a ten-year period beginning
November 1, 1996. The Vote: Unanimous Ayes
SUSPENSION OF ELECTRIC WINTER RATE SCHEDULE
(E-090-100)
Assistant City Manager Perry reviewed the Report to City Council dated November 13, 1996,
incorporated herein by reference, regarding the suspension of the Electric Utility winter rate schedule.
He stated that three things have recently occurred which suggest that the City Council consider the
suspension of the winter rate schedule: (1) the Electric Utility management audit identified stranded
costs as being $258 million and has recommended that the City reduce this cost through a 38 percent
rate increase over nine to ten years. He stated that at a recent management audit meeting, Bill
Carlson of Wheelabrator said he approximated the stranded cost at $124 million and would need to
be mitigated in five to six years; (2) the City Council elected to postpone the introduction of any new
electric rates until January to allow time to receive the Electric Utility Management Audit
Committee's recommendation. It is now believed that this report will not be received until February
or March; and(3) staff received telephone calls questioning why the City was suspending its winter
rate schedule if there was a need for additional revenue.
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Mr. Perry summarized that the City's electric rates need to have parity with PG&E's rates in order
for the City to have competitive rates after 2001. Currently, the City's rates contain a winter and
summer adjustment. The difference between the winter and summer rates is approximately $400,000
each month. He noted that each month the City delays in preparing for competition, it will be harder
overcoming whatever level of stranded investment is determined and the resultant rate increase will
need to be larger to cure that deficiency.
It is the recommendation of staff that the City Council set a public hearing for December 3, 1996, to
consider the suspension of the Electric Utility winter rate schedule.
In response to Council Member P. Anderson, Mr. Perry indicated that the suspension of the
ElectricUtility winter rate schedule would generate an estimated $1.6 million in additional revenue
between January 1997 and May 1997.
Mr. Perry noted that the Electric Utility Management Audit Review Committee concurred with the
need to suspend the winter rate schedule and that any savings should be placed in an account to
reduce the Electric Utility's debt.
Council Member Kehoe believed that the ratepayer is going to be confused by this action. He
believed the City should have been more proactive and made this recommendation sooner.
MOTION: Made by Council Member Murray, seconded by Council Member P. Anderson, to set a
public hearing for December 3, 1996, to consider the suspension of the Electric Utility winter rate
schedule. The Vote: Unanimous Ayes
ESTABLISHMENT OF DEBT REDUCTION FUND (Stranded-Cost Mitigation Fund)
(E-090-100)
Assistant City Manager Perry highlighted the Report to City Council dated November 13, 1996,
incorporated herein by reference, regarding the establishment of a stranded-cost mitigation fund. He
stated that one way to minimize the actual rate increase which might be necessary to pay off projected
stranded costs is to begin immediately to build a Stranded-Cost Mitigation Fund (SCMF) to set aside
money whose single purpose is to pay off stranded costs. He indicated that funds placed in the SCMF
would include any revenue collected from a specific rate increase for restructuring purposes, benefits
resulting from debt restructuring, cost savings in the Electric Utility, competition transition charges,
wholesale revenue enhancements, year-end carryovers, etc.
It is the recommendation of staff that the City Council establish a SCMF and direct staff to prepare
a City Council policy for the City Council's consideration.
Council Member Murray recommended that the title of the Fund be changed from Stranded-Cost
Mitigation Fund to Debt Reduction Fund. He also suggested that the Electric Utility's total debt and
money collected to date be depicted on the monthly Electric Utility bills.
MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, to direct
staff to prepare a City Council Policy titled Debt Reduction Fund regarding the establishment of a
fund to set aside money whose single purpose is to pay off stranded costs for the City Council's
consideration. The Vote: Unanimous Ayes
MODIFICATION OF EXISTING POWER COST ADJUSTMENT
(E-090)
Assistant City Manager Perry highlighted the Report to City Council dated November 14, 1996,
incorporated herein by reference, regarding a modification of the existing Power Cost Adjustment.
He recalled that the City Council, at its February 6, 1996, meeting, approved setting aside 70 percent
of Redding's Revenue Adjustment Clause (RAC) refunds from the Western Area Power
Administration (WAPA) to build up a fund to cover a portion of the revenue loss which will result
from the cancellation of a power purchase contract the City has with WAPA. The remaining 30
percent of the RAC refunds would be returned to the City's electric customers as a Power Cost
Adjustment(PCA)credit. He noted that the cancellation of the power purchase contract will result
in a $10.6 million revenue shortfall for the City over the 1999-2001 time span.
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Mr. Perry explained that staff is proposing to modify the PCA by setting aside 100 percent of RAC
refunds in order to mitigate any rate increase. The additional set-aside will bolster the fund in case
spot market energy prices are too low to generate the necessary revenue. Any excess funds can be
applied to rate stabilization or to lower stranded costs.
It is the recommendation of staff that the City Council direct staff to prepare a City Council Policy
which would modify the existing Power Cost Adjustment and provide that 100 percent of RAC
refunds be set aside in order to mitigate any rate increase and bolster the fund to cover any revenue
shortfall associated with WAPA's cancellation of the power purchase contract.
In response to Council Member P. Anderson, Electric Utility Rates & Economics Analyst Graves
stated that the amount of the RAC refund varies. Staff anticipates the refund in the coming year to
be $400,000.
Council Member P. Anderson believed this money should be placed in the Debt Reduction Fund.
MOTION: Made by Council Member Murray, seconded by Council Member Kehoe, to direct staff
to prepare a City Council Policy which would modify the Power Cost Adjustment to set aside 100
percent of the City of Redding's Revenue Adjustment Clause refunds from the Western Area Power
Administration to help recover revenue lost from Western's cancellation of the power purchase
contract. The Vote: Unanimous Ayes
PUBLIC COMMENT
(E-090-100 & A-030)
Chuck Lema expressed opposition to increasing electric utility rates 38 percent. He also expressed
concern over the City's involvement in the Modesto-Santa Clara-Redding (MSR) project in New
Mexico, and the Redding Power Plant.
Council Member Murray offered to meet with Mr. Lema and discuss his concerns.
Council Member Kehoe questioned some of the alleged statements contained in the Record
Searchlight's article regarding the City's endeavor to clean up properties in the community. He was
especially concerned about the comment regarding influential people owning run-down properties.
City Manager Warren stated he had similar concerns. He related that he asked the employee quoted
in the article who these people were and how they were influenced. He indicated that the employee
responded that there was no indication that anyone had been influenced. The employee stated that
the comment was made based on the historical nature of other cities.
Council Member Murray indicated that the reporter writing the story had contacted him and read him
the statement. He stated that he told the reporter that the comment was not true. He offered to work
with the City Manager and Council Member Kehoe to draft a response letter to the comments cited
in the article.
ADJOURNMENT
There being no further business, at the hour of 9:56 p.m., Mayor McGeorge declared the meeting
adjourned.
APPROVED:
Mayor
ATTEST:
City Clerk
11/19/96