HomeMy WebLinkAboutMinutes - City Council - 1997-04-01 70
City Council, Regular Meeting
Council Chambers
1313 California Street
Redding, California
April 1, 1997 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Mayor Emeritus Carl Arness.
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The Invocation was offered by Pastor Mike Seth of Bethel Church.
The meeting was called to order by Mayor McGeorge with the following Council
Members present: P. Anderson, R. Anderson, Murray and Mayor McGeorge. Council Member
Kehoe arrived at 7:18 p.m.
Also present were City Manager Warren, Assistant City Manager Perry, Deputy City Manager
Starman, City Attorney Wingate, Director of Public Works Galusha, Director of Development
Services Swanson, Community Services Director Gorman, Police Chief Blankenship, Fire Chief
Wagner, Police Captain Byard, Assistant City Engineer Curtis, Human Resources Manager Bachman,
Principal Planner Keaney, Senior Planners King and Hanson, Associate Planner Manuel,
Transportation Coordinator Duryee, Information Systems Operations Manager Erwin, Electric Utility
Operations Manager Ryan, Assistant City Clerk Moscatello and Executive Secretary Sherman.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Minutes - Regular Meeting of December 17, 1996
Regular Meeting of January 7, 1997
Regular Meeting of January 21, 1997
Adjourned Regular Meeting of December 12, 1996
Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 19, for the period March 18, 1997, through
March 31, 1997, check numbers 245770 through 246319 inclusive, in the amount of$3,366,888.36,
and Payroll Register No. 19, check numbers 433952 through 434497 inclusive, and electronic deposit
transaction numbers 36473 through 36833, totaling $1,258,364.82, for the period March 9, 1997,
through March 22, 1997, be accepted.
TOTAL: $4,625,253.18
Treasurer's Report - February 1997
(A-050-100-600)
Total Treasurer's Accountability - $ 93,123,933.53
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities - $ 219,299,181.99
ACR133 and Cash Reconciliation Report - February 1997
(F-205-095-650)
It is the recommendation of the Deputy City Manager that the ACR133 Report and the Proof of Cash
Reconciliation for February 1997, be accepted.
Ordinance No. 2174 - Rezoning Application RZ-17-96, by Paul Edgren (Country Heights
Subdivision, Units 14, 15 & 16)
(L-010-230)
It is recommended that Ordinance No. 2174 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
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certain real property in the City of Redding from "U" Unclassified District and "R-1" Single Family
Residential District to "R-1-BFM" Single Family Residential District, "R-1-B10" Single Family
Residential District and "OS" Open Space District.
Ordinance No. 2175 -Amending Redding Municipal Code Section 18.20.040, "C-O" Office District,
re building heights
(L-010-500-050)
It is recommended that Ordinance No. 2158 be adopted, an ordinance of the City
Council of the City of Redding amending Redding Municipal Code Section 18.20.040, "C-O" Office
District re building heights.
•Property Status Report
(C-070)
It is the recommendation of the Assistant City Manager that the Report to the City Council dated
March 19, 1997, incorporated herein by reference, regarding the following areas be accepted: 1)
Surplus City property; 2)Leases/renewal of leases of City land; 3) Offers to sell land to the City; and
4) City-initiated purchases of land.
Opposition to Assembly Bill 923
(L-040-300 & R-030)
It is the recommendation of the Assistant City Manager that the Mayor be authorized to submit letters
to state legislators opposing passage of Assembly Bill 923 (McClintock) which repeals the State
Community Redevelopment Law.
Electric Utility Status Report - Quarter Ending March 31, 1997
(A-050-125)
It is the recommendation of the Assistant City Manager that the City Council accept the Electric
11 Utility's Status Report for the quarter ending March 31, 1997.
Resolution - Approving Amended and Restated Modesto-Santa Clara-Redding (M-S-R) Operating
Agreement
(E-120-500)
It is the recommendation of the Assistant City Manager that Resolution No. 97-56 be adopted, a
resolution of the City Council of the City of Redding approving entering into an amended and restated
operating agreement between the M-S-R Public Power Agency, the Modesto Irrigation District, and
the cities of Santa Clara and Redding which will simplify and reorganize the functions of the members
and the M-S-R coordinator.
Resolution - Authorizing Application for Mortgage Bond Allocation
(R-030-100-400)
It is the recommendation of the Assistant City Manager that Resolution No. 97-57, be adopted, a
resolution of the City Council of the City of Redding authorizing application to the California Debt
Limit Allocation Committee for Mortgage Credit Certificate Issuance Authority, and designate the
Redding Redevelopment Agency to continue administering the program.
Support of Assembly Bill AB637
(L-040-300)
It is the recommendation of the Assistant City Manager that the City Council authorize the Mayor
and staff to support passage of Assembly Bill 637 (Alby) which will allow the electric utility to
advertise for economic development purposes, customer retention, selling of surplus power, and
marketing services. In addition, this bill will permit the utility to provide electric service outside the
City limits without first obtaining approval from the Shasta County Local Agency Formation
Commission (LAFCO).
Architectural Services Agreement with M/E Systems Engineering
(A-090-100)
It is the recommendation of staff that the City Council approve the Architectural Services Agreement
with M/E Systems Engineering for the Redding Municipal Airport Terminal Building Remodeling
Project in an amount not to exceed $55,650, or 10.5% of the estimated construction costs. The
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remodeling project will include new carpeting, new lobby chairs, an upgrade of counter tops, an
upgrade of the heating/air conditioning system, modify entry doors, upgrade public announcing
system, and an enclosed baggage claim area.
Redding Municipal Airport Ground Lease Agreement with Sierra Pacific
(C-070-100 & A-090-100) •
It is the recommendation of staff that the City Council approve a new ground lease at Redding
Municipal Airport with Sierra Pacific to lease an additional 7,670 square feet of ground space on
which to construct a 6,400 square foot hangar extension to house its new aircraft. The new lease will
generate $1,700 per year in increased revenue to the Airport Fund, and is for a 25-year term
commencing April 1, 1997, with one 15-year option to extend.
Second Amendment to License Agreement with Northern California Drag Racing Association
(A-070-080 & A-090-100)
It is the recommendation of staff that the City Council approve the second Amendment to the License
Agreement for Northern California Drag Racing Association (NCDRA). The amendment requires
that NCDRA hold no less than 12 weekend-night grudge race events, and permits the NCDRA to
borrow three military surplus electrical generators for operation of the dragstrip which must be
maintained at current mechanical status, and permits use of the generators by the go-cart operators.
The amendment fulfills contingencies placed by Council on the approval of the $25,000 loan to the
association for purposes of installing permanent lights and power for the dragstrip.
Resolution- Set Public Meeting and Public Hearing re Landscape Maintenance District A
Resolution - Set Public Meeting and Public Hearing re Landscape Maintenance District B
Resolution - Set Public Meeting and Public Hearing re Landscape Maintenance District C
(A-170-075-050 & A-170-075-051 & A-170-075-052)
It is the recommendation of the Development Services Director that Resolution No. 97-58 be
adopted. A resolution of the City Council of the City of Redding approving the Report of the
Engineer, as filed, declaring its intention to annex Unit 4 of the Lancer Hills Subdivision into Area
10 of Landscape Maintenance District A, to levy and collect assessments for fiscal year 1997/98
pursuant to the Landscaping and Lighting Act of 1972, commencing with Section 22500 of the
Streets and Highways Code, adopt a schedule of annual increases for future assessment, and set a
public meeting for 7:00 p.m., May 6, 1997, and a public hearing for 7:00 p.m., May 20, 1997.
It is the recommendation of the Development Services Director that Resolution No. 97-59 be
adopted. A resolution of the City Council of the City of Redding approving the Report of the
Engineer, as filed, declaring its intention to levy and collect assessments in Landscape Maintenance
District B for fiscal year 1997/98 pursuant to the Landscaping and Lighting Act of 1972, commencing
with Section 22500 of the Streets and Highways Code, adopt a schedule of annual increases for
future assessments, and set a public meeting for 7:00 p.m., May 6, 1997, and a public hearing for 7:00
p.m., May 20, 1997.
It is the recommendation of the Development Services Director that Resolution No. 97-60 be
adopted. A resolution of the City Council of the City of Redding approving the Report of the
Engineer, as filed, declaring its intention to annex Unit 1 and remaining Parcel R-1 of the Fairway
Estates Subdivision into Area 7 of Landscape Maintenance District C, levy and collect assessments
for fiscal year 1997/98 pursuant to the Landscaping and Lighting Act of 1972, commencing with
Section 22500 of the Streets and Highways Code, adopt a schedule of annual increases for future
assessments, and set a public meeting for 7:00 p.m.,May 6, 1997, and a public hearing for 7:00 p.m.,
May 20, 1997.
Monthly Activity Report - Development Services Department
(A-0501154/22_
It is the recommendation of the Development Services Director that the City Council accept the
Development Services Department's Monthly Activity Report through February 1997 which covered
the following work areas: (1)Zoning, Subdivision, and General Plan Amendments. (2) Building and
Population. (3) Housing Assistance and Rehabilitation; and (4) General Plan Update.
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Resolution - Approving Interagency Public Safety System Agreement with Shasta County and the
City of Anderson
(P-100-300)
It is the recommendation of the Chief of Police that Council adopt Resolution No. 97-61, a resolution
of the City Council of the City of Redding approving Integrated Public Safety System Agreement
with the County of Shasta and the City of Anderson to continue the City's participation in the
agreement for the purchase and shared usage of a computerized public safety system for a term of
five years with mutually agreed one-year extensions.
Resolution - Amending Employee Benefit Policies re Vacation for Unrepresented Employees
(P-100-300)
It is the recommendation of the Human Resources Manager that the City Council adopt Resolution
No. 97-62, a resolution of the City Council of the City of Redding amending the City of Redding
Employee Benefit Policies, effective April 6, 1997, by modifying the vacation policy for
unrepresented employees amending Section 8 to eliminate the reference to "management employees,"
to allow Electric Utility Assistant Systems Operator and Electric Utility Systems Operator to use the
existing vacation buy-back program, and to remove obsolete language and clarify existing language.
Resolution - Amending Employee Benefit Policies re Uniform Allowance for Unrepresented
Employees
(P-100-300)
It is the recommendation of the Human Resources Manager that the City Council adopt Resolution
No. 97-63, a resolution of the City Council of the City of Redding amending City of Redding
Employee Benefit Policies, effective April 6, 1997, by modifying the Uniform Allowance Policy to
increase the uniform allowance for Fire management employees who wear uniforms from $450 to
$500 annually, removing obsolete language, and clarifying the policy.
Public Works Quarterly Report - Second Quarter 1997
(A-050-300)
It is the recommendation of the Public Works Director that the Public Works Department's Quarterly
Report for the second quarter 1997 be accepted.
Award of Bid - Bid Schedule No. 3080, Benton Fuel Tanks
(B-050-020)
It is the recommendation of the Public Works Director that Bid Schedule No. 3080 (Job No. 9336),
Construction of Fuel Tanks at Benton Airport, be awarded to Bobby Martin Construction of Redding
in the amount of $198,815, and an additional $20,000 be approved to provide a construction
contingency fund, for a total of$235,000.
It is also recommended that the City Council make the following findings regarding Bid Schedule
3080:
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.
MOTION: Made by Council Member R. Anderson, seconded by Council Member Murray, 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, Murray& McGeorge
NOES: Council Members -None
ABSTAIN: Council Members -None
ABSENT: Council Members - Kehoe
Resolution Nos. 97-56, 97-57, 97-58, 97-59, 97-60, 97-61, 97-62 and 97-63 are on file in the Office
of the City Clerk.
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PUBLIC HEARING - Proposed Interim Electric Utility Rate Surcharge
(E-090-100)
The hour of 7:00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding the
proposed Interim Electric Utility Rate Surcharge.
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
Assistant City Clerk Moscatello advised that no letters of protest were received.
Fred Weatherill, Chair of the Citizen's Audit Review Committee, recalled that over the past several
months, the Citizen's Committee, convened by the City Council, met in excess of 25 times to develop
alternatives to the recommendations made by E.B.S., the consultant who prepared the Electric Utility
Management Audit, and to discuss the best way for the City of Redding to deal with deregulation of
the electric utility. Mr. Weatherill related that during several presentations to civic groups and the
public, it became apparent that the overriding concerns of the public are three-fold: 1) Necessity.
(Is it necessary to raise the rates?); 2) Equity. (Will the increase be distributed equitably so that all
rate payers participate, as well as the utility and the City?); and 3) Veracity. (What assurances are
there that the City Councils of the future will reduce the rates in the year 2005?). Mr. Weatherill
emphasized that trust between the public and the Council is important. Mr. Weatherill thanked the
Council for the opportunity to serve on the Committee.
City Manager Warren provided an overview of the Report to City Council dated March 28, 1997,
incorporated herein by reference, regarding the Proposed Interim Electric Utility Rate Surcharge.
Mr. Warren stated that the process of dealing with deregulation of electric utilities began when the
state legislature passed Assembly Bill 1890 which deregulates the electric utility industry effective in
the year 2002. Mr. Warren explained that in reality, deregulation is present now because Redding
must began to regard electric rates in a competitive light. Mr. Warren recalled that the City Council
commissioned the Electric Utility Management Audit prior to the passage of AB 1890 to review the
efficiency of the electric utility and to make recommendations to Council regarding the best method
of dealing with deregulation. Most of the recommendations contained in the consultant's report were
implemented to create a more efficient operation. However, the consultant recommended that the
City institute a 38% electric utility rate increase in order to buy down a large portion of the $254
million debt, and allow the utility to offer competitive rates by the year 2005. In addition to the
Interim Electric Utility Rate Surcharge, new revenues, existing savings, and approximately $18
million of the $23 million electric fund reserves will be used to service the debt. The City Council
then appointed a Citizens' Committee to consider how the City can become competitive within the
confines of AB 1890, and to examine the consultant's management audit from a local perspective.
The Committee concluded that in the best interest of the community, the City should retain its electric
utility in order to guarantee the preservation of low utility rates in the future, implement an Interim
Electric Utility Rate Surcharge of 23% to pay down the $254 million debt, and to examine corollary
issues which could raise or lower the recommended 23% increase amount. Mr. Warren explained
that the work of the Citizen's Committee was exemplary, and that they worked diligently to consider
the best interests of the community.
(Council Member Kehoe arrived)
Assistant City Manager Perry then reviewed the corollary issues identified by the Citizen's Committee
which can affect the amount of the recommended Interim Electric Utility Rate Surcharge: 1) Reduce
the City's participation in new development. The value of this investment is about 4% at the present
rate, and will take approximately one year to realize due to current projects in progress which must
be completed. 2) Eliminate conservation incentives valued at 0.5% at the present which will also
take time to realize, but the City can begin immediately. 3) Eliminate offices for the Electric
Department staff from the new Civic Center plans. This has a value of approximately 0.25% in future
mortgage payments, but will create problems in the design of the building which is nearing
completion. 4) Reduce or increase funding for the capital improvement plan. The two issues which
must be considered with this reduction are reliability, and keeping up with load growth while
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minimizing expenses;these issues may adversely affect customer service if too much is deferred. 5)
Funding for the state mandated "Public Goods Charge" is equivalent to a 2.7% rate increase. The
alternative is to take this money out of existing revenues or obtain new revenues. 6) Modify the
relationship between residential and commercial rate payers. 7) Reduce the transfer to the General
Fund for the cost of streetlights, services and in-lieu taxes.
It is recommended that staff be directed to report back to Council every six months regarding the
status of debt reduction and any significant events which could affect the effort to reduce the
surcharge. In addition, pursuant to the recommendation of the Citizen's Committee, staff be directed
to prepare a draft strategic plan for consideration by Council which will redirect the focus of the
utility to that of a market driven corporation. With regard to the corollary issues, staff further
recommends the following: 1) Reduce the City's participation in residential development. 2)
Gradually eliminate conservation incentives. 3) Keep the new Civic Center on course, and retain the
Electric Utility offices therein. 4) Review the preliminary Capital Improvement Plan. 5) Establish
a Lifeline program for individuals on fixed or low incomes to be placed in effect as soon as possible.
6) Review modification of the relationship between commercial rates and residential rates in stages
over several years. 7) During the upcoming budget session, review the transfer of funds to the
General Fund for services. 8) Reduce Electric Utility reserves to $5 million with the balance of
approximately$18 million being placed in the rate reduction fund. 9) Continue operational savings
of$1 million enacted by Council in 1996. 10) Create a goal for the Electric Utility Department of
generating an additional $300,000 per year in revenue through power sales. 11) Eliminate another
$300,000 in expenditures from the budget. 12) Place all proceeds from the interim surcharge in the
rate reduction fund created by Council Policy for the sole purpose of buying down the debt. 13) List
the interim rate surcharge and the mandated Public Goods Charge as separate line items on utility
bills. 14) Adopt the resolution establishing a 23% interim electric rate surcharge effective
immediately until such time as $200 million in debt is retired.
The following individuals spoke in opposition of implementing the Interim Electric Utility Rate
Surcharge:
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Thomas Provine, 1000 Harpole Drive. Fran Jenkins, 2652 Sharon Street. Frank Divers, 2694
Dawnridge Drive. Peter Scales, 13829 Bear Valley Trail, Mountain Gate. Bascomb Grecian, 1610
Canter Court. Dwight Bailey, 941 Mussel Shoals, Shasta Lake City. Bruce Gerard, 1374 West
Street. Dave Johnson, 1639 Derby Lane. Craig Hines, 4689 Oakland Drive. Floyd Frizzell, 540
South Street #47.
The concerns of those speaking in opposition are that the interim rate surcharge will discourage big
business from locating in Redding, and cause small businesses to go out of business resulting in lost
jobs. Many speakers expressed concern that the surcharge will negatively affect property values, and
cause Redding's utility customers to look elsewhere to obtain less expensive service once competition
begins which will result in fewer utility customers and an increase in utility rates to compensate.
Speakers also expressed concern that there is no assurance that the surcharge revenue will be used
to pay off the debt only or that future City Councils will retire the surcharge. Some speakers believed
the electric utility should be sold because it is too expensive to be owned by a municipality. In
addition, most speakers were sympathetic of Council's position, realizing that they are not responsible
for the problems caused by deregulation.
Lance Frederiksen, 6640 Waterford Drive, on behalf of Kent Dagg of the Builders' Exchange,
requested that Council address the issue of service connection fees to new business prior to taking
any action.
Susan Santilena, 2544 Clara Court, acknowledged that Council had a very difficult decision to make,
and that the debt must be reduced, but she believed that the surcharge amount was too high. Ms.
Santilena expressed concern for the owners of small businesses in Redding, like herself, who will be
adversely affected by the surcharge, and may be forced to close.
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Mary Machado, President of the Redding Chamber of Commerce, and Paul Edgren, 230 Hartnell
Avenue, offered alternatives and cost cutting suggestions which they believe could reduce the amount
of surcharge. However, they sympathized with Council's position realizing that something must be
done to reduce the debt.
Carl Arness, 2216 Oakridge Drive, stated that the citizens of Redding have enjoyed rates far below
the rates of Pacific Gas&Electric(PG&E) for many years. Mr. Arness recommended that Council,
"bite the bullet" and impose the increase, but attempt to reduce and make adjustments to the rate if
possible.
Patrick Hardy, 1660 Victor Avenue, advised Council that there is an abundance of natural resources
in the community that are not being utilized. He invited staff and Council Members to contact him
regarding alternatives available through the use of natural resources.
Council Member Kehoe invited Fred Weatherill to speak to the question of veracity.
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Fred Weatherill, 2538 Old Alturas Road, stated that he would address the question of veracity as a
rate payer and citizen of Redding rather than as a member of the Citizen's Committee. Mr.
Weatherill, explained that there are many ways to assure the community that the money generated
from the surcharge will be spent to reduce the debt only. Mr. Weatherill suggested that a clause be
added to the resolution automatically rescinding the increase in the year 2005. He also suggested that
a report accompany the customer's monthly utility bill which will track the progress of debt reduction.
The City could also hire a director whose employee contract includes a clause to meet the goal of rate
reduction.
Mayor McGeorge determined that no one else present who wished to speak on the matter and closed
the public hearing.
Council Member Murray stated that unfortunately the public hearing forum does not afford the
opportunity for an exchange of ideas between the citizens and Council. He stated that he would be
happy to meet with anyone at any time to discuss this issue in depth, and he assured the public that
there is no attempt by Council or staff to withhold information. Mr Murray emphasized that the debt
was originally amortized over 30 years, but deregulation necessitates that it be paid off in 7 years, and
it is our responsibility as owners and consumers of the utility to pay the bill no matter how unpleasant.
Mr. Murray stressed that Council has a fiscal and a moral responsibility to address the debt created
in this generation so that it is not passed along to our children. Mr. Murray acknowledged that valid
issues of equity exist,but those equity issues as well as corollary issues should be addressed separate
from the debt, and suggested that they be brought back to Council for consideration at the April 15,
1997 meeting.
Council Member Kehoe concurred with Council Member Murray adding that Council can not bow
to political expediency, and while the surcharge is distasteful, the alternatives are unacceptable.
Council Member R. Anderson stated that he is prepared to act on implementing a surcharge but felt
that the 23% increase amount can be reduced. Mr. Anderson suggested that; 1) eliminating the
cushion provided to allow for errors in calculations can save 2%; 2) directing staff to reduce annual
expenses and/or increase the profit on stock market sales can save an additional 1%; 3) increasing
charges to new construction will further reduce the amount of the surcharge; and 4) enacting only
1% of the "Public Goods Charge" and earmarking that for Lifeline Rates for seniors, handicapped,
and those on low and fixed income will realize further savings. Mr. Anderson explained that by
allowing for these adjustments, the surcharge can be reduced from 23% to 19%.
Council Member P. Anderson noted that Council inherited this debt and the utility is being forced to
pay off the debt in one-third of the time. She added that Council is doing its best to address the
matter with the least pain. Council Member P. Anderson pointed out that predicting the amount of
surcharge necessary to eliminate the debt is not a science and a 23% increase is the best estimate of
staff and the citizen's committee.
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Mayor McGeorge stated as a citizen and businessman of Redding, he will be heavily impacted by the
surcharge, but pointed out that he has enjoyed 25 years of very low utility rates living and working
in Redding. Unfortunately everyone must now share the cost of reducing the debt, and doing so will
allow us to bring the rates down and become competitive in the future. Mayor McGeorge stressed
that this debt is so large, it will bankrupt the utility and the City if not reduced.
Council Member Kehoe questioned the relationship between Council action on the corollary issues
and savings that may be developed to reduce the 23%. He stated that he would like additional
information on how the corollary issues could affect the rate increase before voting.
City Manager Warren advised that Council has the option of lowering the rates at any time in the
future if deemed appropriate to implement any of the corollary issues.
Council Member Murray reiterated his belief that corollary and equity issues be addressed when the
Cost of Services Study is complete and the necessary information is available to address each issue.
Council Member Murray stated he is in favor of adopting the resolution at this time.
MOTION: Made by Council Member Murray, seconded by Council Member Kehoe adopting
Resolution No. 97-64, a resolution of the City Council of the City of Redding establishing a 23%
interim electric utility rate surcharge to be placed in effect immediately, with the addition of the
following clause: this rate increase shall be automatically rescinded when the fund totals $200 million
unless action is taken to extend it.
Voting was as follows:
AYES: Council Members: P. Anderson, Murray& McGeorge
NOES: Council Members: R. Anderson, Kehoe
ABSTAIN: Council Members: None
ABSENT: Council Members: None
Resolution No. 97-64 is on file in the Office of the City Clerk.
At the hour of 9:20 p.m., Mayor McGeorge declared a recess.
At the hour of 9:42 p.m., Mayor McGeorge declared the meeting reconvened.
PUBLIC HEARING - General Plan Amendment Application, GPA-1-97, by City of Redding
(Northeast corner of Eastside Road and Metz Road)
(G-030-010)
The hour of 7:00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding General
Plan Amendment Application, GPA-1-97, by City of Redding.
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
Assistant City Clerk Moscatello advised that no letters of protest were received.
Development Services Director Swanson reviewed the Report to City Council dated March 18, 1997,
incorporated herein by reference, regarding General Plan Amendment Application, GPA-1-97. Mr.
Swanson related that the City of Redding is requesting to amend the General Plan on approximately
10 acres of vacant property located at the northeast corner of Eastside Road and Metz Road by
rezoning the property from "Public" to "General Industrial." Mr. Swanson recalled that on March
4, 1997, Council declared the property as surplus, and staff has processed the environmental
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documents and the General Plan Amendment to facilitate the sale and ultimate development of the
property for manufacturing-type uses.
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It is the recommendation of staff that Council approve the environmental negative declaration and
approve the General Plan Amendment rezoning the property from "Public" to "General Industrial"
which is consistent with surrounding uses and General Plan designations, and consistent with future
development of the site for manufacturing uses.
Mayor McGeorge determined that no one present wished to speak on the matter and closed the public
hearing.
MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson that the City
Council make the following findings regarding GPA-1-97:
1. Project is compatible with the Redding General Plan;
2. Project will not significantly alter existing land form;
3. Project is compatible with surrounding lane 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.
MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson approving
General Plan Amendment GPA-1-97 in concept, amending the Redding General Plan on a 10-acre
parcel of property located at the northeast corner of Eastside Road and Metz Road from "Public" to
"General Industrial," and directing staff to prepare the appropriate resolution for adoption by Council.
The Vote: Unanimous ayes.
PUBLIC HEARING - Rezoning Application, RZ-2-97, by City of Redding (Girvan Road and
Highway 273)
(L-010-230)
The hour of 7:00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding
Rezoning Application, RZ-2-97, by City of Redding.
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
Assistant City Clerk Moscatello advised that no letters of protest were received.
Director of Development Services Swanson provided a brief overview of the Report to City Council
dated March 18, 1997, incorporated herein by reference, regarding the City's request to rezone 438
acres of property located between Girvan Road on the north, Highway 273 on the west, the
Sacramento River on the east and the City boundary on the south from "U" Unclassified District and
"U-FP" Unclassified District with Floodplain Combining District to "M-2-F" Industrial District with
Site Plan Review Combining District, "M-2-F-FP" Industrial District with Site Plan Review and
Floodplain Combining District, and "OS" Open Space District.
It is the recommendation of staff that Council approve the environmental negative declaration and
approve the rezoning request.
Council Member Murray expressed concern that the Site Plan Review criteria lists several buffering
options between residential and industrial areas which are not complimentary to one another if used
in combination at property boundaries.
Mr. Swanson replied that the criteria is designed to provide the applicant with flexibility because it
is the responsibility of the developer/applicant to install the buffering to provide adequate separation
and screening for residential zones.
Mr. Murray stated that the Site Plan Review Criteria should be reworked into something that is more
consistent and uniform.
In response to Council Member Murray, Principal Planner Keaney stated that some of the property
immediately adjacent to the City-owned parcel is held by private property owners who have not seen
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the Site Plan Review Criteria. Mr. Keaney added, however, that two public hearings were held which
identified the recommended zoning, and none of the private property owners are affected because
their property does not abut residential.
In response to Council Member P. Anderson, Senior Planner King stated that all property owners in
the area were provided with written notification of the public hearings and of the negative declaration.
However, Mr. King explained that the City did not provide Site Plan Review Criteria to property
owners.
Mayor McGeorge determined that no one present wished to speak on the matter and closed the public
hearing.
City Attorney Wingate advised that if the Site Plan Review Criteria becomes part of the ordinance,
it should be included in the public hearing process, and it should be made available to property
owners.
Mr. Keaney advised that Site Plan Review Criteria is different for each type of rezoning requested,
and it has not been made a part of the notification process in the past.
It was the consensus of Council that this item be continued to the April 15, 1997, Council meeting
to provide staff with time to develop a more uniform Site Plan Review Criteria for Council
consideration.
Mayor McGeorge reopened the public hearing, and continued it to the Council meeting of April 15,
1997.
PUBLIC HEARING- Amendment to the Dog License, Kennel License and Penalty Fees
(A-130-100 & A-130-150)
The hour of 7:00 p.m. having arrived, Mayor McGeorge opened the public hearing regarding the
proposed amendment to the Dog License, Kennel License and Penalty Fees, by City of Redding.
The following document is on file in the office of the City Clerk:
• Affidavit of Publication - Notice of Public Hearing
Assistant City Clerk Moscatello advised that no letters of protest were received.
Assistant City Clerk Moscatello reviewed the Report to the City Council dated March 17, 1997,
incorporated herein by reference, regarding a proposed increase in the dog license, kennel license and
penalty fees in order to achieve full-cost recovery. Ms. Moscatello recalled that the City Council, at
its meeting of October 1, 1996, established a spay-neuter assistance program and approved several
other amendments to the animal regulation ordinance. The increase in license, kennel, and penalty
fees was referred back to staff for development of a full-cost recovery fee schedule.
Ms. Moscatello advised that the full-cost recovery objective can be achieved by increasing the dog
license fees as follows: A one year license will be increased from $10 to $18; a two year license will
be increased from$18 to $28 and; a three year license will be increased from $24 to $34; these fees
are reduced by 1/2 for senior citizens and for spayed or neutered dogs. In addition, the penalty fee
will be increased from $5 to $15 for those individuals who fail to license their dogs within the
prescribed licensing period, and for those individuals cited for failure to license their dogs. The
penalty fee is associated with animal control costs and dog licensing administrative cost because both
City staff and Haven Humane Society's regulation officers incur significant time in enforcing licensing
compliance. It is believed that the increased penalty fee will motivate dog owners to vaccinate and
license their dogs in a timely manner. Ms. Moscatello further related that the kennel license fee will
be increased from$15 to a sliding scale from $50 for no more than 10 dogs, and $100 for 11 or more
dogs.
It is the recommendation of staff that the City Council adopt the resolution amending the schedule
of fees and service charges for dog license, kennel licenses and penalty fees.
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MOTION: Made by Council Member P. Anderson, seconded by Council Member R. Anderson,
adopting Resolution No. 97-65, a resolution of the City Council of the City of Redding amending its
schedule of fees and service charges for dog licenses, kennel licenses and late penalty fees to be
implemented for the 1997-98 dog licensing period. The Vote: Unanimous Ayes.
Resolution No. 97-65 is on file in the Office of the City Clerk.
APPOINTMENT -Planning Commission
(B-080-300)
MOTION: Made by Council Member Kehoe, seconded by Council Member Murray, appointing
Marc Woodward to the Redding Planning Commission to serve an unexpired term to May 1, 1997.
The Vote: Unanimous Ayes.
ESTABLISHMENT OF A NATURAL GAS AGGREGATION PROGRAM
(E-090-058)
Assistant City Manager Perry provided an overview of the Report to City Council dated March 18,
1997, incorporated herein by reference, regarding establishing a Natural Gas Aggregation Program
to explore opportunities available for Redding to become a core aggregator to reduce natural gas
bills, and increase revenue. Mr. Perry related that the Electric Utility staff has been participating in
the natural gas procurement function for fuel supplies at the Redding Power facility by taking
advantage of a short-term opportunity to purchase competitively-priced gas and sell the unused
capacity on Pacific Gas& Electric's (PG&E) transportation system. This participation has brought
staff into contact with natural gas providers that want to increase their sales and help develop a core
aggregation program for the City of Redding. Mr. Perry explained that if Redding performs the core
aggregation service for residents and businesses, it will help customers reduce their total energy costs
while increasing the utility's revenue. Any revenue in excess of program costs can be applied to the
City's electric rate reduction fund and reduce the potential magnitude for duration of the Interim
Electric Utility Rate Surcharge.
It is the recommendation of staff that the Council authorize staff to issue a Request for Proposal
(RFP) to authorize Core Transport Agents in the PG&E system to further delineate the potential
savings opportunities of this service, and develop a draft contract for Council consideration and
approval with the CTA providing the most competitive response to the RFP.
Responding to Council Member Kehoe, Mr. Perry stated that the cost is approximately $2,000 to
$5,000 to accomplish staffs recommendation, however, staff will report back to Council with a
complete price list and an estimate on potential returns.
Council Member Murray commended the efforts of staff to research all available avenues to save
money.
MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe authorizing
staff to issue a Request for Proposal (RFP) to authorized Core Transport Agents (CTA's) in the
PG&E system to delineate potential savings opportunities of core aggregation service in order to
evaluate this opportunity as a means of being competitive, reducing customer energy costs, and
generating additional revenue to offset future rates. Staff is further authorized to develop a draft
contract for Council consideration and approval with the CTA providing the most competitive
response to the RFP. The Vote: Unanimous Ayes.
GENERAL FUND MONTHLY FINANCIAL REPORT - February 1997
(B-130-070)
Deputy City Manager Starman highlighted the Report to City Council dated March 24, 1997,
incorporated herein by reference, regarding the General Fund Monthly Financial Report for February
1997.
MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson,
accepting the General Fund Monthly Financial Report for February 1997. The Vote: Unanimous
Ayes.
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ELECTRIC UTILITY MONTHLY FINANCIAL REPORT - February 1997
(B-130-070)
Deputy City Manager Starman provided an overview of the Report to Council dated March 24, 1997,
incorporated herein by reference, regarding the Electric Utility Monthly Financial Report for February
1997.
Council Member Murray requested that staff include information in the monthly report illustrating
to the community the progress the City is making on reduction of the $200 million utility debt. Mr.
Starman advised that the information will be included in the next report.
MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, accepting
the Electric Utility Monthly Financial Report for February 1997. The Vote: Unanimous Ayes.
ORDINANCE - Amending Redding Municipal Code Section 3.04.030, Schedule of Landing Fees
(A-090-100)
Director of Development Services Swanson reviewed the Report to City Council dated March 19,
1997, incorporated herein by reference, regarding an amendment to Redding Municipal Code Section
3.04.030 regarding the schedule of landing fees. Mr. Swanson related that the current Redding
Municipal Code establishes that operators of aircraft with a certified maximum gross takeoff weight
of 12,500 pounds or greater be charged the current landing fee. However, the Federal Aviation
Administration (FAA) defines "large aircraft" as weighing more than 12,500 max gross certified
takeoff weight. Mr. Swanson related that since Redding's large aircraft weight criteria differs from
that of the FAA by one pound, it is appropriate to amend the Redding Municipal Code to reflect the
change in weight limit by which landing fees are assessed, and thereby become consistent with the
FAA.
It is the recommendation of staff that the Council approve the ordinance amending the Redding
Municipal Code to reflect the change of"large aircraft" weight limit criteria to match that of the FAA
which defined as more than 12,500 maximum gross certified takeoff weight.
In response to Council Member Kehoe, Mr. Swanson related that the change will cost the City less
than $1,000 per year in lost landing fees revenue.
Council Member Kehoe offered Ordinance No: 2176 for first reading, an ordinance of the City
Council of the City of Redding revising Redding Municipal Code Title 3, Aircraft and Airports, by
amending Section 3.04.030, schedule of landing fees.
MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson that the
full reading or Ordinance No. 2176 be waived and that the City Attorney be instructed to read the
full title. The Vote: Unanimous Ayes.
RIVER MANAGEMENT COMMITTEE
(R-200-600 & G-030-000)
City Manager Warren provided Council with a brief synopsis of the Report to City Council dated
March 18, 1997, incorporated herein by reference, regarding the River Management Committee. Mr.
Warren explained that staff met with the General Plan Task Force as directed by the City Council at
the meeting of March 18, 1997, and determined that the General Plan Task Force should rely on the
existing work plan for the General Plan Update to provide the guidance to protect the public and
private resources along the river, and to provide a vision for the future. Mr. Warren clarified that the
River Management Committee will cease to exist:
MOTION: Made by Council Member Murray, seconded by Council Member Kehoe directing the
General Plan Task Force to remain within its existing workplan to develop basic policy in the area
of river management, and provide an opportunity for the ad hoc River Management Committee to
share its ideas and plans with the Task Force, and that the River Management Committee then cease
to exist. The Vote: Unanimous Ayes.
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RESOLUTION - Abandonment Application (A-6-96), a Portion of Akard Avenue
(A-010-100, C-050-025 & S-070-100)
Assistant City Engineer Curtis summarized the Report to City Council dated March 26, 1997,
incorporated herein by reference, regarding the City's intention to abandon a portion of Akard Avenue
between Cypress Avenue and Parkview Avenue, and modification to the Cypress and Athens Avenues
intersection to add left turn phases.
Mr. Curtis recalled that the City Council at its October 15, 1996, meeting, approved in concept the
abandonment of Akard Avenue between Cypress and Parkview Avenues necessary for construction
of the new Civic Center facility. Mr. Curtis related that during the public hearings on the
abandonment proposal, public testimony from residents of the area revealed a need for left hand turn
phases at the intersection of Cypress/Athens/Parkview Avenues. Council directed staff to prepare
a report and return with recommendations on installing left turn signal phases at the intersection of
Cypress Avenue/Athens Avenue/Park Marina Drive. In addition, staff was directed to conduct a
study regarding the alignment of the Park Marina Drive/Athens Avenue intersection, and the nearby
Park Marina Drive/Parkview Avenue intersection.
It is the recommendation of staff that Council approve the abandonment of Akard Avenue between
Cypress Avenue and Parkview Avenue effective upon recordation of the resolution with the County
Recorder's Office, with recordation withheld until street closure becomes necessary for construction.
It is further recommended that Athens Avenue be realigned to the west to line up with Park Marina
Drive which will remain at its present location, and install left hand turn phases at the
Cypress/Athens/Park Marina intersection for a total cost of$359,000.
Fran Jenkins, 2652 Sharon Street, emphasized that Parkview neighborhood residents feel strongly
that left hand turn phases are needed at the location to offset the closure of Akard Avenue, and to
provide easier ingress and egress to the homes located south of Cypress Avenue. Ms. Jenkins stated
that her preference is for Alternative 3,but she could live with Alternative 2. Ms. Jenkins added that
the plants and shrubs growing in the triangle median area of Park Marina Drive and Parkview Avenue
should be trimmed because they obstruct the view of oncoming traffic creating a hazard.
John Reginato, 672 State Street, stated that he concurred with Ms. Jenkins regarding the need for
the left turn phases, and expressed his preference for Alternative 3. Mr. Reginato thanked Council
for their efforts in improving the Parkview neighborhood.
Carl Arness, 2216 Oakridge Drive, cautioned Council that the installation of left turn lanes will
increase traffic accidents at that location, and that if construction of the Parkview Bridge is assured
in the near future, the money designated for the left turn lanes/realignment project can be used for
acquisition and right-of-way. The Parkview Bridge will greatly ease traffic flow in the area without
setting the stage for increased traffic accidents.
Vi Klaseen, 2295 Oak Ridge Drive, requested that Council keep pedestrians and bicyclists in mind
when redesigning the area so that they will be able to maneuver safely.
Clay McClain, 2147 Washington Street, stated that left turns from Athens Avenue to Cypress Avenue
are very hazardous.
In response to Council Member P. Anderson, Transportation Coordinator Duryee explained that cost
estimates for the new signalization include left turn signal phases, the installation of new mast arms
to place the signal heads out over the traffic lanes, the installation of new conduits under ground, new
wiring and inductive loops under the roadway for computer sensing to cycle the lights, and striping
for the left turn lanes. Mr. Duryee further explained that all roadway changes proposed by the City
include amenities for pedestrians and bicyclists.
Mr. Duryee, addressing the concerns expressed regarding increased traffic accidents with the
installation of left turn lanes, stated that studies of similar intersections indicate that the number of
accidents will probably remain constant, but the type of accident may change to that of rear-end
collisions.
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Council Member Murray expressed concern that the alternatives listed are not within the $250,000
project budget, and believed that staff should be directed to develop an acceptable alternative within
the budget. Mr. Murray stated he is unwilling to go over budget.
City Manager Warren emphasized that the acquisition of property is the most costly factor of the
project which makes it very difficult to remain within the budget and still accomplish all that is
proposed for less than $359,000.
MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson
adopting Resolution No. 97-66, a resolution of the City Council of the City of Redding ordering the
vacation of that portion of the Akard Avenue right- of-way laying between Cypress Avenue and
Parkview Avenue(A-6-96), and approving the realignment of Athens Avenue to the west to line up
with Park Marina Drive which will remain at its present location, and obtain right-of-way for the
northwest corner parcel of Cypress and Athens Avenues, and install left-hand turn phases on Cypress
Avenue eastbound onto Athens Avenue, and westbound onto Park Marina Drive for a total cost of
$359,000.
The Vote:
AYES: Council Members - P. Anderson, R. Anderson, Kehoe& McGeorge
NOES: Council Members - Murray
ABSTAIN: Council Members -None
ABSENT: Council Members - None
Resolution No. 97-66 is on file in the Office of the City Clerk.
ADJOURNMENT
There being no further business, at the hour of 11:05 p.m., Mayor McGeorge declared the meeting
adjourned.
APPROVED:
•
Mayor PAC AI - /
ATTEST:
'IL_ C. �lf'
Assistant City Clerk •
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