HomeMy WebLinkAboutMinutes - City Council - 1997-02-18 26
City Council, Regular Meeting
City Council Chambers
1313 California Street
Redding, California
February 18, 1997 7:00 p.m.
The Pledge of Allegiance to the flag was led by Marlene McDowell of Shasta Union High School.
The invocation was offered by Principal Planner John Keaney.
The meeting was called to order by Mayor Pro Tern Murray with the following Council Members
present: R. Anderson, Kehoe, and Murray. Council Member P. Anderson and Mayor McGeorge's
absences were excused.
Also present were City Manager Warren, Assistant City Manager Perry, City Attorney Wingate,
Director of Public Works Galusha, Development Services Director Swanson, Fire Chief Wagner,
Electric Utility Engineering Manager Russell, Principal Planner Keaney, Deputy City Manager
Starman, Human Resources Manager Bachman, Finance Officer Strong, Senior Planner Hanson,
Information Systems Operations Manager Erwin, Associate Planner Morgon, Assistant Planner
Thesken, City Clerk Strohmayer, and Secretary to the City Council Rudolph.
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 16, for the period February 4, 1997, through
February 13, 1997, check numbers 244293 through 244802 inclusive, in the amount of
$3,565,312.45, and Payroll Register 16, check numbers 432292 through 432847 inclusive, and
electronic deposit transactions numbers 35417 through 35768, totaling $1,257,856.76, for the period
January 26, 1997, through February 8, 1997, be approved.
TOTAL: $4,823,169.21
Lease Agreement - American Telephone & Telegraph re Cellular Site at Eureka Way Substation
Property
(C-070-100 & -090-140-260)
It is the recommendation of the Assistant City Manager that the City Council authorize staff to work
with Spectrum Network Services to develop a lease agreement in accordance with City Council
Policy No. 1901 with American Telephone & Telegraph (AT&T) Wireless Service for a portion of
the City's Eureka Way 115/12kV Substation property which is located outside the fenced substation.
Resolution - Amending City Council Policy 1405 re Debt Reduction Fund and City Council Policy
1406 re Modification of the Existing Power Cost Adjustment
(A-050-060-555)
It is the recommendation of the Assistant City Manager that Resolution No. 97-022 be adopted, a
resolution of the City Council of the City of Redding amending City Council Policy 1405, Debt
Reduction Fund, and City Council Policy 1406, Modification of the Existing Power Cost Adjustment,
retroactive to December 3, 1996.
Resolution Amending City Council Policy No. 1501 re Selection of Technical Consultants
(A-050-060-555)
It is the recommendation of the Deputy City Manager that Resolution No. 97-023 be adopted, a
resolution of the City Council of the City of Redding amending City Council Policy No. 1501,
Selection of Technical Consultants.
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•
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Resolution - Reducing Appropriations and Revenue Estimates
(B-130-070)
It is the recommendation of the Deputy City Manager that Resolution No. 97-024 be adopted, a
resolution of the City Council of the City of Redding approving and adopting the 24th amendment
to City Budget Resolution No. 96-130 to: (1) reduce appropriations in the Convention Center by
$125,000 and in the Recreation Division by $90,000; and (2) reduce revenue estimates in the
Convention Center by $145,000, in the General Fund by $236,000, and in the Water Fund by
$192,000.
Resolution - Authorizing Purchase of New Disk to Upgrade the AS/400 Disk Storage Capacity
(B-050-100)
It is the recommendation of the Deputy City Manager that Resolution No. 97-025 be adopted, a
resolution of the City Council of the City of Redding authorizing the purchase of a new disk from
Chouinard & Myhre, Inc. to upgrade the disk storage capacity of the AS/400, in an amount not to
exceed $33,355, pursuant to Redding Municipal Code Section 4.20.120(H)(2).
Set Public Hearing - re Establishing Fee for Mailing Mandated 48-Hour Utility Nonpayment
Disconnection Notices
* (F-205-600 & U-500-100)
It is the recommendation of the Deputy City Manager that a public hearing be set for 7:00 p.m.,
March 4, 1997, to consider the establishment of a fee for mailing mandated 48-hour utility
nonpayment disconnection notices.
Set Public Hearing - re Rate Increase for the Public Parking Facility at Redding Municipal Airport
* (F-205-600 & P-030-200 & A-090-100)
It is the recommendation of the Development Services Director that a public hearing be set for 7:00
p.m., March 4, 1997, to consider a rate increase for the public parking facility at the Redding
Municipal Airport.
Resolution - re Community Tree PlantingDay and Arbor Week
(A-050-060-600 & A-050-220)
It is the recommendation of the Assistant City Manager and Community Services Director that
Resolution No. 97-026 be adopted, a resolution of the City Council of the City of Redding declaring
March 7, 1997, as Community Tree Planting Day, and March 2-8, 1997, as Arbor Week and
acknowledging the City's receipt of the following awards for 1996: Tree City USA Award, Growth
Award, and Tree Line USA Utility Award.
Enterprise Community Park - Use of Budget Savings from Construction of Enterprise Community
Park, Phase 1A
(P-050-145 & B-130-070)
It is the recommendation of the Community Services Director that the savings associated with the
construction of Enterprise Community Park, Phase 1A, in the approximate amount of$150,000 be •
deposited into the Park Development Fund.
Resolution - Appropriating Funds for Temporary Employees Services in City Treasurer's Office
* (B-130-070 & A-050-100)
It is the recommendation of the Human Resources Manager that Resolution No. 97-027 be adopted,
a resolution of the City Council of the City of Redding approving and adopting the 23rd amendment
to City Budget Resolution No. 96-130 to appropriate $5,000 for temporary employee services in the
City Treasurer's Office.
Reject Bid - Bid Schedule No. 3064, Refuse Truck, and Authorize Rebidding
(B-050-100 & S-020-100)
It is the recommendation of the General Services Director that the sole bid received from Diesel
Performance in the amount of$154,808.19 for Bid Schedule No. 3064, refuse truck (front loader)
to include body and closed circuit television camera, be rejected, as it did not meet bid specifications,
and staff authorized to request bids for the equipment from an updated list of potential vendors.
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Resolution - Certifying Results of February 4, 1997, Special Municipal Election re Measure A
Ordinance No. 2170 - Ordinance Passed by the People of the City of Redding re Measure A
* (E-070-100 & T-010-600 & L-070-100)
It is the recommendation of the City Clerk that Resolution No. 97-028 be adopted, a resolution of
the City Council of the City of Redding declaring the results of the Special Municipal Election held
in the City of Redding on February 4, 1997; and ratifying and continuing Ordinance Nos. 1939 and
1935.
It is recognized that Ordinance No. 2170, an ordinance of the City of Redding, State of California,
ratifying and continuing Ordinance No. 1939 which increased the Transient Occupancy Tax and was
adopted by the City Council on October 2, 1990, and ratifying and continuing Ordinance No. 1935,
adopted by the City Council on September 28, 1990, which adjusted, established, or increased certain
business license taxes, was passed by the voters of the City of Redding at a Special Municipal
Election held February 4, 1997;the vote was declared by the legislative body on February 18, 1997,
with an effective date ten days thereafter.
Resolution Accepting Streets and Acceptance of Improvements - Country Heights, Unit 16, Phase
1 (S-6-95) (South of Placer Street at the east end of Wasatch Drive)
* (S-070-230 & S-100-108)
It is the recommendation of the Public Works Director that Resolution No. 97-029 be adopted, a
resolution of the City Council of the City of Redding accepting for maintenance and operation
Wasatch Drive in Unit 16 of the Country Heights Subdivision.
It is further recommended that the improvements in Country Heights, Unit 16, Phase 1, be accepted
as satisfactorily completed and the City Clerk instructed to return the securities to the developer,
Signature Northwest.
Approval of Final Map -Lancer Hills Estates, Unit 4(S-1-96) (Southwest corner of Browning Street
and Lancers Lane)
(S-100-433) •
It is the recommendation of the Public Works Director that the final map for Lancer Hills Estates,
Unit 4, be approved, the Mayor authorized to sign the subdivision agreement, and the City Clerk
instructed to file the map with the Shasta County Recorder.
Resolution Accepting Streets and Acceptance of Improvements - White Hawk Estates Unit 1, aka
Country Heights, Unit 16, Phase 2 (S-6-95) (South of Placer Street at the east end of Cumberland
Drive)
* (S-070-230 & S-100-108)
It is the recommendation of the Public Works Director that Resolution No. 97-030 be adopted, a
resolution of the City Council of the City of Redding accepting for maintenance and operation
Cumberland Drive and Dream Street in Unit 1 of the White Hawk Estates Subdivision (aka Country
Heights Subdivision, Unit 16, Phase 2.
It is further recommended that the improvements in White Hawk Estates Unit 1, be accepted as
satisfactorily completed, the City Clerk instructed to return the securities to the developer, Signature
Northwest, and the Finance Division authorized to pay the developer $4,349.78 for the cost of
oversizing the water main.
Resolution-Lease Agreement with California State Lands Commission re South Bonnyview Bridge
(S-070-050-450)
It is the recommendation of the Public Works Director that Resolution No. 97-031 be adopted, a
resolution of the City Council of the City of Redding approving entering into a general lease with the
California State Lands Commission for right-of-way use to.submerged lands for the expansion of the
South Bonnyview Bridge across the Sacramento River.
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MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, that all the
foregoing items on the Consent Calendar be approved and adopted as recommended.
Voting was as follows:
Ayes: Council Members - R. Anderson, Kehoe, and Murray
Noes: Council Members -None
Absent: Council Members -P. Anderson and McGeorge
Resolution Nos. 97-022, 97-023, 97-024, 97-025, 97-026, 97-027, 97-028, 97-029, 97-030 and 97-
111 031 are on file in the office of the City Clerk.
LETTER OF RESIGNATION - Board of Appeals Member Les Melburg
(B-080-050)
MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, to accept
Les Melburg's letter of resignation from the Board of Appeals effective March 1, 1997. The Vote:
Unanimous Ayes
LETTER OF RESIGNATION - Board of Appeals Member Robert Richelieu
(B-080-050)
MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, to accept
Robert Richelieu's letter of resignation from the Board of Appeals effective March 1, 1997. The
Vote: Unanimous Ayes
PUBLIC HEARING-re General Plan Amendment GPA-6-96 and Rezoning Application RZ-12-96
by the City of Redding (2335 Airpark Drive)
* (G-030-010 & L-010-230)
The hour of 7:00 p.m. having arrived, Mayor Pro Tem Murray opened the public hearing regarding
GPA-6-96 and RZ-12-96.
The following documents are on file in the office of the City Clerk:
Affidavit of Mailing -Notice of Public Hearing
Affidavit of Publication - Notice of Public Hearing
Planning Commission recommendation dated February 7, 1997
City Clerk Strohmayer advised that no protests were received.
Development Services Director Swanson related that General Plan Amendment GPA-6-96 and
Rezoning Application RZ-12-96 concern City-owned surplus property located at 2335 Airpark Drive.
He explained that the property is within the jurisdiction of the Airport Land Use Commission (ALUC)
and the General Plan Amendment was referred to ALUC in December 1996, but no action has been
taken. He stated that absent ALUC's approval, it would require a four-fifths vote to approve the
General Plan Amendment. Given this information, he recommended that the public hearing be
continued to March 4, 1997.
Mayor Pro Tern Murray determined that there was no one present wishing to speak on the matter.
MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, that the
public hearing regarding General Plan Amendment GPA-6-96 and Rezoning Application RZ-12-96,
by the City of Redding, be continued to March 4, 1997. The Vote: Unanimous Ayes
PUBLIC HEARING-re General Plan Amendment Application GPA-5-96 and Rezoning Application
RZ-11-96, by the City of Redding (2050 Airpark Drive)
* (G-030-010 & L-010-230)
The hour of 7:00 p.m. having arrived, Mayor Pro Tern Murray opened the public hearing regarding
GPA-5-96 and RZ-11-96.
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The following documents are on file in the office of the City Clerk:
Affidavit of Mailing -Notice of Public Hearing
Affidavit of Publication-Notice of Public Hearing
Planning Commission recommendation'dated February 7, 1997
City Clerk Strohmayer advised that no protests were received.
Development Services Director Swanson related that the General Plan Amendment GPA-5-96 and
Rezoning Application RZ-11-96 concern City-owned surplus property located at 2050 Airpark Drive.
He explained that the property is within the jurisdiction of the Airport Land Use Commission (ALUC)
and the General Plan Amendment was referred to ALUC in December 1996, but no action has been
taken. He stated that absent ALUC's approval, it would require a four-fifths vote to approve the
General Plan Amendment. Given this information, he recommended that the public hearing be
continued to March 4, 1997.
Council Member Murray asked that the Report to City Council prepared for the March 4, 1997,
meeting contain an additional alternative which would allow for maintaining an office park
environment in the area.
Marlena McDowell questioned whether there would still be an area where dogs could be taken to
exercise, etc. Assistant City Manager Perry replied that part of the City Council's recommendation
when the property was declared surplus was that the park would not be closed until a replacement
park had been developed.
Mayor Pro Tem Murray determined that there was no one else present wishing to speak on the
matter.
MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, that the
public hearing regarding General Plan Amendment GPA-5-96 and Rezoning Application RZ-11-96,
by the City of Redding, be continued to March 4, 1997. The Vote: Unanimous Ayes
PUBLIC HEARING-re Rezoning Application RZ-14-96, by Mark Lascelles and the City of Redding
(West of Clover Creek, east of Shasta View Drive, and south of Hartnell Avenue)
(L-010-230)
The hour of 7:00 p.m. having arrived, Mayor Pro Tem Murray opened the public hearing regarding
Rezoning Application RZ-14-96.
The following documents are on file in the office of the City Clerk:
Affidavit of Publication -Notice of Public Hearing
Affidavit of Mailing -Notice of Public Hearing
Planning Commission recommendation dated February 5, 1997
City Clerk Strohmayer advised that no protests were received.
Development Services Director Swanson highlighted the Report to City Council dated February 5,
1997, regarding a request to rezone properties located directly to the east of the newly developed
Forest Homes Estates Subdivision from "U-FP" Unclassified District with Floodplain Combining
District to R-1 Single-Family Residential District, "R-1-FP" Single-Family Residential District with
Floodplain Combining District, and "OS" Open Space District. He explained that the rezoning is
necessary prior to processing the tentative map submittal for the six-lot Eastbrook Park Subdivision
submitted by Mr. Lascelles in December 1996.
Mr. Swanson noted that the Development Services Department received telephone calls from
individuals concerned about the width of the Clover Creek floodplain area. He explained that there
appears to be an adequate buffer for the subdivision to the east and the proposed development.
It is the recommendation of both the Planning Commission and staff that the City Council approve
the rezoning as recommended, approve the Negative Declaration, offer the necessary ordinance for
first reading, and waive the full reading of said ordinance.
02/18/97
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•
Mayor Pro Tern Murray 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 R. Anderson, that the
City Council approve the rezoning as recommended and making the following findings regarding RZ-
14-96:
1. Project is compatible with the Redding General Plan;
2. Project will not significantly alter existing land form;
3. Project is compatible with surrounding land use;
4. Project is compatible with the Code of the City of Redding, California; and approve
the Negative Declaration authorized by the Development Services Department. The Vote:
Unanimous Ayes
Council Member Kehoe offered Ordinance No. 2171 for first reading, an ordinance of the City
Council of the City of Redding amending Section 18.06.020 of the Redding Municipal Code relating
to the rezoning of certain real property in the City of Redding to "R-1" Single-Family Residential
District; "R-1-FP" Single-Family Residential District with Flood Plain Combining District; and "OS"
Open Space District (RZ-14-96).
MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, that the
full reading of Ordinance No. 2171 be waived and the City Attorney be instructed to read the full
title. The Vote: Unanimous Ayes
APPOINTMENT OF CHAIR AND VICE CHAIR- Community Development Advisory Committee
(B-080-600-100)
MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, to appoint
Rick Bosetti and Leo Graham as Chair and Vice Chair, respectively, of the Community Development
Advisory Committee. The Vote: Unanimous Ayes
Council Member Kehoe noted that the Chair and Vice Chair of all other commissions are selected by
the commissioners themselves. He asked staff to research why the Community Development
Advisory Committee was not structured in the same fashion.
RESOLUTION - Agreement for Funding of Operation and Maintenance of Central Valley Project
Power Facilities
(E-120)
Assistant City Manager Perry provided an overview of the Report to City Council dated February 11,
1997, incorporated herein by reference, regarding an agreement for the funding of operation and
maintenance of the Central Valley Project (CVP) power facilities between the Western Area Power
Administration(WAPA), the Bureau of Reclamation, and WAPA's customers. He stated the purpose
of the agreement is to establish a mechanism to assure the maintenance and operation of the system.
He explained that with this agreement, WAPA would no longer have to rely on annual appropriations
from Congress.
Mr. Perry related that staff is recommending that the City Council agree to enter into an agreement
with WAPA at the contributor-funding level which would commit the City to 1/12 of Redding's share
of the estimated operation and maintenance cost($173,118.25) for fiscal year 2001. This would also
entitle the City to vote for the governance board and be eligible to be elected to the governance
board. He stated that the agreement is currently being reviewed by all WAPA customers and noted
that not all customers are expected to participate.
It is the recommendation of staff that the City Council conceptually approve the agreement and
authorize the Mayor to sign it on the City's behalf. He related that if substantial changes are made
to the agreement after all of WAPA's customers have reviewed it, it will be brought back for the City
Council's consideration.
In response to Council Member R. Anderson, City Attorney Wingate stated that he has been
reviewing drafts of this agreement for almost a year and is fully aware of its contents.
02/18/97
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Council Member Murray stressed that this agreement will not increase the City's Electric Utility rates.
He explained that the City's contribution under this agreement will go directly to making repairs at
Shasta Dam, with the City receiving a credit of an equal amount on its bill for the contribution. He
summarized that the agreement costs the City no additional money but allows WAPA and its
customers to have more control over maintaining the adequacy of the system.
MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, that
Resolution No. 97-032 be adopted, a resolution of the City Council of the City of Redding approving
entering into Agreement No. 96-SNR-00110 for funding of the operation and maintenance for Central
Valley Project Power Facilities (Agreement), by and between the following parties: United States
Department of Energy, Western Area Power Administration, Sierra Nevada Customer Service
Region, Central Valley Project, California, and United States Department of Interior, Bureau of
Reclamation, Mid-Pacific Region, and Central Valley Project Customers.
Voting was as follows:
Ayes: Council Members -R. Anderson, Kehoe, and Murray
Noes: Council Members -None
Absent: Council Members -P. Anderson and McGeorge
Resolution No. 97-032 is on file in the office of the City Clerk.
RESOLUTION - Amending City Council Policy No. 601 re Assessment Districts
(A-050-060-555 & A-170)
Deputy City Manager Starman provided an overview of the Report to City Council dated January 6,
1997, incorporated herein by reference, concerning revisions to City Council Policy No. 601
regarding assessment districts. He summarized the revisions as follows: 1) form a loan committee
to review all assessment district financings and make a recommendation to the City Council on
whether to proceed with the assessment district formation; 2) develop a "phasing" agreement,
whereby the City could require phasing of a development as a condition to assessment district
formation; 3)require developers to provide the City with a letter of credit when recommended by the
loan committee and/or by the City Council; 4) the establishment of a special revenue fund in which
all allowable assessment district delinquent penalty and interest payments would be developed; and
5) commence foreclosure procedures immediately after a foreclosure list has been approved by the
City Council.
In response to Council Member Kehoe, Mr. Starman stated that the proposed policy revisions will
go a long way toward resolving the matter of the City having to advance funds to make debt service
payments on assessment districts.
In response to Council Member R. Anderson, Mr. Starman explained that the policy, as currently
written, will allow the City to renew the letter of credit annually for a total five-year term. In
response to City Manager Warren, Mr. Starman stated that the policy can be amended to allow the
City the option of renewing the letter of credit beyond the five-year term.
Mr. Warren recommended that the City Council not establish a special revenue fund in which all
allowable assessment district delinquent penalty and interest payments would be deposited, but
continue to allow these funds to be deposited into the General Fund and tracked accordingly.
MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, that
Resolution No. 97-033 be adopted, a resolution of the City Council of the City of Redding amending
its City Council Policy No. 601 entitled Assessment District Policies as depicted in the Report to City
Council dated January 6, 1997, with the following changes: Reflect that the City reserves the right
to renew the letter of credit for a period up to ten years; and not establish a special revenue fund, but
maintain the status of monies being placed in the General Fund, and require staff to track them.
Voting was as follows:
Ayes: Council Members - R. Anderson, Kehoe, and Murray
Noes: Council Members - None
Absent: Council Members -None
Resolution No. 97-033 is on file in the office of the City Clerk.
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DEBT SERVICE PAYMENT - Churn Creek Road Extension #2 Assessment District No. 1990-5
(A-170-120-011)
The Report to City Council dated February 4, 1997, incorporated herein by reference, noted that an
interest payment of$8,159 is due to be transferred to the Trustee at the end of February with regard
to Churn Creek Road Extension#2 Assessment District No. 1990-5. It was noted that the District's
available cash totals only $1,399, leaving a shortfall of$6,760.
In stars opinion, it is desirable to avoid having the City's name linked to a bond default. Therefore,
it is recommended that the City Council approve advancing $6,760 for the March 2 debt service
payment from the General Fund ($3,732), the Water Fund ($284), and the Storm Drainage Fund
($2,744).
In response to Council Member Kehoe, City Attorney Wingate explained that the attorney for the
principals noted in the staff report is aware of the action being considered by the City Council and
staff is proceeding with litigation action. He stated that there is an escrow scheduled to close on one
of the ten parcels and staff is attempting to enter into an agreement to recover some of the delinquent
assessment. He indicated that a lot line adjustment will also be filed to reconfigure one of the
remaining parcels and staff will be requiring an appraisal to support the reconfiguration. He related
that staff is attempting to put together a plan on the entire deal and is hopeful that a majority of the
assessments already advanced will be recouped.
•
Council Member Kehoe questioned the City's potential loss associated with this district. Mr. Wingate
stated that he could not provide a figure at this time, as the value of two lots was still doubtful. He
stressed that staff is trying to achieve a win-win situation and believed the value of the remaining
property will be enhanced if this escrow closes.
MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, authorizing
staff to advance $6,760 for the March 2 debt payment from the General Fund ($3,732), the Water
Fund ($284), and the Storm Drainage Fund ($2,744). The Vote: Unanimous Ayes
DOWNTOWN REVITALIZATION
(P-050-300 & R-030-145-350)
Senior Planner Hanson provided an overview of the Report to City Council dated February 13, 1997,
incorporated herein by reference, regarding the efforts to renovate and expand Library Park. He
summarized that there are two issues involved with this project: 1) Parking - There is a perception
that parking in the downtown area is not adequate. He added, however, that there is a consensus
among the businesses in the downtown area, and staff concurs,that parking is adequate; 2) Cost -
He stated that to date, $18,400 has been raised through private contributions and $50,000 from the
Community Development Block Grant, there are grant funds available to assist with the completion
of this work, and that the proposal before the City Council this evening is to provide funds to make
up the difference between the cost of the project and the funds available.
Council Member R. Anderson questioned whether future developments could be required to provide
off-street parking in the downtown area. Mr. Hanson replied that staff could explore this possibility
if it is determined there is a need for additional parking.
Council Member Kehoe questioned whether there were any businesses opposing the reduction in
parking spaces.
Mr. Hanson stated that to his knowledge there is no opposition to the parking space reduction.
In response to Council Member Murray, Mr. Hanson stated that staff made it clear that if Library
Park improvements moved forward, there was no commitment that the stairwell would be constructed
in this phase.
City Manager Warren recalled that at the last City Council meeting, staff was asked two questions:
1) Should the City Council appoint a formal oversight committee to coordinate downtown activities;
and 2) Are the City and the Redding Redevelopment Agency's budget processes integrated with
respect to capital projects and is there coordination among competing interests? Mr. Warren
02/18/97
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explained that there is some coordination between the two budget processes. He stated that City
projects, i.e., sewer, water, and streets, compete within their separate funds. He indicated that the
Redding Redevelopment Agency steps in and helps with some of the infrastructure projects. He
noted, however, that there are a few redevelopment or General Fund-type projects where
Redevelopment monies are used. He cited two examples as the Civic Center project and the $75,000
to be used over the next few years for the general downtown improvements.
Mr. Warren related that Redevelopment money has not been used for things like downtown plans and
redeveloping/improving areas beyond infrastructure for the following reasons: 1) a concerted effort
is being made to keep development costs as low as possible, thereby making development occur
quicker and for less costs; and 2) there have not been improvement plans in place. Now that an
improvement plan for the downtown area is in place, he said the question is how to fund the
improvements. He indicated that the entire increment for the Market Street Redevelopment Project
Area is $877,000, of which $180,000 is for debt service, $175,000 for housing set-aside; and
$477,000 for pass-through to the schools, Shasta County, and the Mosquito Abatement District,
leaving$25,000 in uncommitted funds for downtown projects. He indicated that a larger increment
is necessary to make the improvements, but the improvements/revitalization are necessary to bring
in the increment. He said that staff estimates being able to issue $3 million in bonds in approximately
four years.
With regard to appointing an oversight committee, Mr. Warren recommended that the City Council
not do so at the present time. He stated that the Downtown Funding Team, consisting of
representatives from all the groups working on the downtown, is working very well.
Mr. Warren further recommended that the City keep the momentum going with regard to downtown
projects and authorize using $226,000 from the General Fund reserve to be used for the Market
Street Demonstration Project, Library Park, Downtown Building Design Guidelines, gateway design
competition, and parking garage improvements to the stairs and rail. He noted that funding these
projects accomplishes the following: 1) It gets something going immediately in the downtown and
takes it from a stagnant downtown to an improving downtown; 2)It allows everyone to see the vision
for the downtown; 3) It will spur other economic development activity; 4) It will move the talking
and excitement into actions and, therefore, keep the momentum going; and 5) The City will gain
greater sales tax, be able to leverage dollars for future economic development activity, and receive
a greater increment. He related that the General Fund is doing slightly better than expected and the
sale of the downtown parking lots is expected to bring in a similar amount of money and, therefore,
could be considered as keeping the money in the downtown through the sale of the lots.
Mr. Warren cautioned that staff does not know what to expect from the State Legislature regarding
Proposition 218, and there is always something around the corner threatening to take money away
from cities. He stressed that if the City Council approves the expenditure of these funds, there will
be pressure for the City to do more in the downtown area. He pointed out that the City only has so
much money, and the allocation proposed this evening will tap most of those available resources.
Mr. Warren recommended that the City Council take the following action: 1) direct staff to eliminate
parking as outlined in the Community Services Director's Report to City Council dated February 13,
1997; 2) direct the City Manager to bring back resolutions at the next City Council meeting
transferring $226,000 from the General Fund reserve to the Capital Demonstration Block for
completion of Library Park and the Market Street Demonstration Block; 3) direct the City Manager
to proceed with any and all administrative steps necessary to begin the Library Park renovation in
order to meet the MarketFest schedule; and 4) authorize the City Manager to begin the bidding
process for Library Park and the Market Street project as soon as grants are awarded.
Council Member R. Anderson stated that the City Manager addressed most of his concerns. He
favored proceeding with the project as proposed, as long as the noted grant monies are received,
regardless of their funding source. He stressed that funding for the downtown cannot continue each
year as there are too many other General Fund needs.
02/18/97
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Council Member Kehoe favored expending the $226,000 for the improvements, but concurred there
is too much competition for General Fund monies for this to be ongoing. Given the finite dollars
available, he stated that his emphasis is on public safety, i.e., additional police officers, street
maintenance, and three-person engine crews.
Mr. Warren explained that there are three basic places public money can be spent: labor, materials
and supplies, and capital projects. He stated that a healthy community puts money into all three
areas. He looked at the $226,000 expenditure as an investment in the community which will spur
economic activity and create funds to pay for police officers, museums, etc.
Council Member Kehoe indicated that he would be interested in seeing projections regarding a rate
of return on this investment.
Jeff Swanson, 280 Hemsted Drive, related that the Redding Redevelopment Agency has funded an
architectural and engineering study to look into the possibility of constructing a stairwell on the
exterior of the building. He stated that he was very excited by the recommendations made by the City
Manager. He expressed appreciation to City staff for working with the private businesses and interest
groups in moving the revitalization of the downtown forward. He understood the difficult decision
the City Council has to make but believed the investment would be worthwhile and generate a great
return to the City.
MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, to direct
staff, contingent upon grants being received in the amount of$125,000, to eliminate parking as
outlined in the Community Services Director's Report to City Council dated February 13, 1997,
direct the City Manager to bring back resolutions at the next City Council meeting transferring
$226,000 from the General Fund reserve to the Capital Demonstration Block for completion of
Library Park and the Market Street Demonstration Block, direct the City Manager to proceed with
any and all administrative steps necessary to begin the Library Park renovation in order to meet the
MarketFest schedule, and authorize the City Manager to begin the bidding process for Library Park
and the Market Street project as soon as grants are awarded. The Vote: Unanimous Ayes
ADJOURNMENT
There being no further business, at the hour of 8:25 p.m., Mayor McGeorge declared the meeting
adjourned.
APPROVED:
Mayor / /
ATTEST:
City Clerk
02/18/97