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HomeMy WebLinkAboutMinutes - City Council - 1997-05-06 95 City Council, Regular Meeting City Council Chambers 1313 California Street Redding, California May 6, 1997 7:00 p.m. The Pledge of Allegiance to the Flag was led by Frances Jenkins. The Invocation was offered by Pastor Bob Johnson, Frontline Assembly of God. The meeting was called to order by Mayor P. Anderson with the following Council Members present: R. Anderson, Kehoe, McGeorge, Murray and P. Anderson. 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, Electric Group Manager Ryan, Deputy City Manager Starman, Planning Manager Keaney, Community Services Director Gorman, Electric Program Supervisor Graves, Senior Planner King, Senior Planner Hanson, Human Resources Manager Bachman, Building Official Nagel, Acting Housing Manager Meek, Assistant City Clerk Moscatello, City Clerk Strohmayer, and Secretary to the City Council Rudolph. Recognition of Donations for Neighborhood Pride Program (C-110-100-400) Mayor P. Anderson and Vice Mayor Murray presented the following businesses with certificates of appreciation for their donations to the Neighborhood Pride Program: Channel 7, Country Kitchen, Lumberjack Building Materials, Cascade Paint and Supply, Inc., and Kelly-Moore Paint Co. CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Minutes - Special Meeting of January 30, 1997 Special Meeting of February 4, 1997 Regular Meeting of February 4, 1997 Regular Meeting of February 18, 1997 Regular Meeting of March 4, 1997 Special Meeting of March 11, 1997 Special Meeting of March 13, 1997 Regular Meeting of March 18, 1997 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 21, for the period April 15, 1997, through April 29, 1997, check numbers 246751 through 247291 inclusive, in the amount of$4,280,848.31, and Payroll Register No. 21, electronic deposit transaction numbers 37204 through 37573 inclusive, and check numbers 435027 through 435557 inclusive, totaling $1,277,659.04, for the period April 6, 1997, through April 19, 1997, be approved. TOTAL: $5,558,507.35 Treasurer's Report - March 1997 (A-050-100-600) Total Treasurer's Accountability - $ 96,480,352.08 Total City of Redding Funds, Funds Held in Trust and Funds of Related Entities - $222,478,935.95 ACR113 Report and Cash Reconciliation (F-205-095-650) It is the recommendation of the Finance Officer that the ACR113 Report and Cash Reconciliation for March 31, 1997, be accepted. 05/06/97 96 Ordinance No. 2177 - re Rezoning Application RZ-2-97 (Girvan Road on the north, Highway 273 on the west, the Sacramento River on the east, and the City boundary on the south) (L-010-230) It is recommended that Ordinance No. 2177 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 "M-2-F" Industrial District with Site Plan Review Combining District;"M-2-F-FP" Industrial District with Site Plan Review and Floodplain Combining Districts, with site plan review criteria;"OS" Open Space District; and "U" Unclassified District (RZ- 2-97). Ordinance No. 2178 - re Rezoning Application RZ-1-97 (West of Churn Creek Road and on both sides of Victor Avenue generally north of El Verano Street) (L-0l0-230) It is recommended that Ordinance No. 2178 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-B10" Single-Family Residential District and "OS" Open Space District (RZ-1-97). Resolution - Amending City Council Policy No. 205, City's Legislative Position (A-050-060-555) It is the recommendation of the City Manager that Resolution No. 97-074 be adopted, a resolution of the City Council of the City of Redding amending its Policy No. 205 entitled Legislative Position. Surplus Property Status Report (C-070) It is the recommendation of the Assistant City Manager that the City Council accept the Surplus Property Status Report as of April 1997 for the following areas: (1) Surplus City Property; (2) Leases of City Land; (3) Offers to Sell Land to the City; and (4) City Initiated Purchases of Land. Offer to Exchange Property - Habitat for Humanity (C-070-0l0 & C-070-200) It is the recommendation of the Assistant City Manager that Habitat for Humanity's request to exchange two parcels it owns on Overhill Drive for the City-owned vacant parcel on Martian Way be referred to the Planning Commission, Recreation and Parks Commission, and staff for review and recommendation. Property Exchange Agreement - Robert E. Meissner (C-070-010 & C-070-200) It is the recommendation of the Assistant City Manager that the City Council approve the Exchange Agreement between the City and E. Robert Meissner and authorize the Mayor to sign said agreement which provides for Mr. Meissner acquiring approximately one acre of City-owned land on Nordona Lane in exchange for $15,000 cash and a 30-foot fee title strip across the property he owns on Electro Way. Offer to Exchange Property - Jeff and Jeannie Teall (C-070-010 & C-070-200) It is the recommendation of the Assistant City Manager that the City Council direct staff to prepare an exchange agreement with Jeff and Jeannie Teall whereby the Tealls would obtain 3,394 square feet of City-owned surplus property at 3040 Island Drive in exchange for deeding the City 933 square feet of property in fee, and an additional 2,338 square feet in easement and the City would relinquish a 1,654-square-foot area in easement not crossed by the ditch. It is further recommended that staff be authorized to concurrently offer the 933-square-foot area north of the ditch to John and Debbie Stokes (adjacent property owners) for $0.50 a square foot. Transaction Listing- First Quarter 1997 (B-050-100) It is the recommendation of the Deputy City Manager that the City Council accept the Transaction Listing for purchases between $5,000 and $25,000 for the first quarter of 1997. 05/06/97 97 • Resolution - Appropriating Funds for Redding Peaking Power Generation Project * (B-130-070 & E-120-150) It'is the recommendation of the Deputy City Manager that Resolution No. 97-075 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 30th amendment to City Budget Resolution No. 96-130 to appropriate $978,200 for the combustion turbine project. Cal-Card Program (B-050-100) It is the recommendation of the Deputy City Manager that the City Council authorize the Purchasing Division to continue the implementation of the Cal-Card Program and begin distribution of cards to all City departments as soon as practical. Resolution - re Modification of Loan Terms re Borland's Home Rental Contract 8607-10 (G-100-075-203) It is the recommendation of the Development Services Director that Resolution No. 97-076 be adopted, a resolution of the City Council of the City of Redding approving modification of the loan terms for the Borland Home Rental Contract to assure rent affordability requirements associated with the Federal Home Investment Partnerships Program. Resolution - Releasing Abatement Proceedings on Property at 3529 Court Street, Owned by Ruth Kinsella, Ina Stower, and Elaine Moore (A-030-070) It is the recommendation of the Development Services Director that Resolution No. 97-077 be adopted, a resolution of the City Council of the City of Redding releasing the proceedings of abatement under Chapter 9.36 of the Redding Municipal Code on certain real property in the City of Redding located at 3529 Court Street, owned by Ruth Kinsella, Ina Stower, and Elaine Moore. Negotiate Contract - Coffman Associates re Airport Planning Services (A-090-020 & A-090-100) It is the recommendation of the Development Services Director that the City Council authorize staff to negotiate a contract for airport planning services with Coffman Associates for consideration at a later date. Resolution - re Sale Proceeds from Excess Airport Land at Redding Municipal Airport (C-070-200 & A-090-100) It is the recommendation of the Development Services Director that Resolution No. 97-078 be adopted, a resolution of the City Council of the City of Redding obligating the City of Redding to expend the proceeds of the sale of excess land at the Redding Municipal Airport upon said airport within a five-year period. State Reimbursement for 1996 Winter Storm Damage - Designation of Agent (P-150-070) It is the recommendation of the Fire Chief that the City Council authorize the execution of the Office of Emergency Services (OES) Form 130, Designation of Applicant's Agent Resolution, appointing Fire Chief Wagner, Administrative Battalion Chief Ballard, and Fire Marshal Eckard as designated agents. Award of Request for Proposal - Request for Proposal No. 3062, Mobile Data System Planned Development (B-050-100 & P-150-150) It is the recommendation of the Police Chief that the City Council direct staff to negotiate a contract, in an amount not to exceed $40,000, with the Emmack Cronan Group relative to Request for Proposal No. 3062, mobile data system planned development, and authorize the City Manager to execute said contract. Award of Request for Proposal - Request for Proposal No. 3061, Domestic Violence Imaging Systems (B-050-100 & P-150-150) It is the recommendation of the Police Chief that the City Council direct staff to negotiate a contract, in an amount not to exceed $102,172, with Chouinard and Myhre, Inc. relative to Request for 05/06/97 98 Proposal No. 3061, domestic violence imaging systems, and authorize the City Manager to execute said contract. Award of Bid -Bid Schedule No. 3087, Miscellaneous Component Materials (B-050-100) It is the recommendation of the General Services Director that Bid Schedule No. 3087, miscellaneous component materials, be awarded to Munnell & Sherrill, Inc. in the amount of$32,394.72. Award of Bid - Bid Schedule No. 3086, High Density Landfill Compactor (B-050-100) It is the recommendation of the General Services Director that Bid Schedule No. 3086, high density landfill compactor, be awarded to Al-jon, Inc. in the amount of$396,504.33. Resolution - Regional California Oil Recycling Block Grant Application (G-100-170 & S-020-550) It is the recommendation of the General Services Director that Resolution No. 97-079 be adopted, a resolution of the City Council of the City of Redding authorizing the County of Shasta to submit a Regional California Oil Recycling Block Grant Application in the name of Shasta County and the Cities of Anderson, Redding, and Shasta Lake to implement and carry out recycling or appropriate disposal of used oil in 1997-2000. Award of Bid - Bid Schedule No. 3081, Pleasant Street Sewer Main Replacement (B-050-020&W-020-575) It is the recommendation of the Public Works Director that Bid Schedule No. 3081 (Job No. 9683- 67),Pleasant Street sewer main replacement, be awarded to L. Clayton Construction in the amount of$68,740, an additional $10,000 be approved to cover the cost of engineering and inspection fees, and $10,000 be approved to provide a construction contingency fund, for a total of$88,740. Funds for this project are included in the Wastewater Utility's 1997-98 fiscal year budget. Resolution - Appropriating Funds for Legal Expenses related to Lake Redding Estates Drainage Improvements * (B-130-070 &L-100 & B-050-020) It is the recommendation of the Public Works Director that Resolution No. 97-080 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 35th amendment to City Budget No. 96-130 to appropriate $12,300 for legal expenses related to the Lake Redding Estates Drainage Improvements (Bid Schedule Nos. 2794 and 2801). MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge, 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, McGeorge, Murray& P. Anderson Noes: Council Members - None Absent: Council Members - None Resolution Nos. 97-074, 97-075, 97-076, 97-077, 97-078, 97-079, and 97-080 and Ordinance Nos. 2177 and 2178 are on file in the office of the City Clerk. PUBLIC MEETING- Landscape Maintenance District A (A-170-075-050) The hour of 7:00 p.m. having arrived, Mayor P. Anderson opened the public meeting regarding Landscape Maintenance District A. The following documents are on file in the office of the City Clerk: Affidavit of Mailing -Notice of Public Meeting and Public Hearing Affidavit of Publication -Notice of Public Meeting and Public Hearing Protests were received from the following individuals: Linda Katzer, Clifford Hepburn, Judith Duerks, and Cheryl R. Long. 05/06/97 99 Development Services Director Swanson explained that the purpose of the public meeting is to accept testimony regarding the proposed levying of annual landscape maintenance assessments for District A. He stated that a public hearing, as required by State law, will be held by the City Council on May 20, 1997, to hear concluding testimony and staff responses to both hearings. He related that staff is proposing a schedule of increases in lieu of considering a new calculated rate each year in order to take advantage of a"grandfather" clause which would exclude the district from the requirements of Proposition 218 if acted upon prior to the July 1, 1997, deadline. He indicated that the schedule of increases would not need to be considered annually and would only permit a maximum 4 percent annual increase thereafter. Senior Planner King related that a citizens' panel was formed consisting of six residents from Districts A and B. After reviewing various alternatives, the committee developed a schedule of annual increases which are contained in the Report to City Council dated April 21, 1997, incorporated herein by reference. Mr. King stated that the proposed 1997-98 assessment for Landscape Maintenance District A is $30.00, representing an increase of$4.63. Fred Wilson, 2307 Candlewood, stated that he does not oppose the beautification of Redding, but is concerned about the maintenance being provided. He opined that the proposed assessment for District A is an inflated figure. He indicated that the landscaping in the areas where he owns property consists primarily of mature shrubbery, trees, and some smaller shrubbery. He believed the only maintenance needed for this type of landscaping is clipping the shrubs and monitoring the watering, thereby resulting in minimal costs, and that he is being required to pay to have someone else's grass cut. He noted that the landscaping costs are high because the City is requiring the landscaper to have licensed personnel to spray insecticide. He noted that it would cost less if the City allowed all landscaping contractors to bid on the projects and have City personnel, who are already licensed, to do the necessary insecticide spraying. He related that this change in practice would permit more than four contractors to submit bids. He further questioned the legality of arbitrarily assigning a subdivision to a district where costs may be higher for maintenance, i.e., grass versus shrubs. Mayor P. Anderson determined that there was no one else present wishing to speak on the matter and closed the public meeting. This was an informational meeting and no action was required. PUBLIC MEETING- Landscape Maintenance District B (A-170-075-051) The hour of 7:00 p.m. having arrived, Mayor P. Anderson opened the public meeting regarding Landscape Maintenance District B. The following documents are on file in the office of the City Clerk: Affidavit of Mailing -Notice of Public Meeting and Public Hearing Affidavit of Publication -Notice of Public Meeting and Public Hearing A protest was received from Fred Hawley. Development Services Director Swanson explained that the purpose of the public meeting is to accept testimony regarding the proposed levying of annual landscape maintenance assessments for District B. He stated that a public hearing, as required by State law, will be held by the City Council on May 20, 1997, to hear concluding testimony and staff responses to both hearings. He related that staff is proposing a schedule of increases in lieu of considering a new calculated rate each year in order to take advantage of a"grandfather" clause which would exclude the district from the requirements of Proposition 218 if acted upon prior to the July 1, 1997, deadline. He indicated that the schedule of increases would not need to be considered annually and would only permit a maximum 4 percent annual increase thereafter. Senior Planner King related that a citizens panel was formed consisting of six residents from Districts A and B. After reviewing various alternatives, the committee developed a schedule of annual increases which are contained in the Report to City Council dated April 21, 1997, incorporated herein by reference. Mr. King stated that the proposed 1997-98 assessment for Landscape Maintenance District B is $71.00, representing an increase of$1.72. 05/06/97 100 John Macevicz, 2529 Ishi Drive, stated his subdivision has approximately 5,200 square feet of lawn in an area which runs approximately 1,000 feet down Cypress Avenue. With regard to the annual four percent cost-of-living increase, he noted that as a former State employee, he only received a two percent cost-of-living increase the past three to four years. He believed the original formation of the assessment districts was a violation of Proposition 13. He opined that Mr. King should have been able to reach residents in each subdivision, thereby developing a more rounded committee. Mr. Macevicz opposed the proposed schedule which would permit increases up to four percent each year. He noted that the last time he opposed increases to the assessment, he was told that as the population grew within the district, the cost would be reduced, however, he has not seen a reduction. He urged the City Council not to just act on the advice of staff, but to consider the matter and determine what is best for the citizens. Dee Bagely, 541 Olympic, opined that Churn Creek Road is unsightly and unkept. She noted that five years ago her assessment was$32 and is now proposed to be$71, with no new landscaping being provided. She indicated that the City owns property along Churn Creek where the weeds are often too high and the landscaping cannot be seen. She stated that she has complained about the landscaping within the Monterey Springs Subdivision and was informed that the subdivision was in bankruptcy, however, she related that building continues to occur. She questioned why Monterey Springs Subdivision would ultimately be placed in a district with a lower assessment and not within District B and requested that this discrepancy be addressed. Jerry Garcee, 577 Olympic, concurred that there is inequity between the properties within the different districts. He stated that landscaping within his subdivision consists of shrubs and trees, and he is being required to subsidize those areas with grass. He supported landscaped areas, but noted that the landscaping within his subdivision is not being adequately cared for and that Mr. King has concurred with his observation. He indicated that as elected officials, the City Council is obligated to stand behind the voters and uphold the intent of Proposition 218. He felt it was appropriate to pay an assessment for maintenance provided to other higher maintenance areas. Mr. King clarified that four percent is only the maximum cost-of-living increase which can be imposed in any one year; however, the actual increase could be lower. City Manager Warren stated that staff is attempting to maintain a methodology to achieve consistency regarding the annual assessment. He explained that if the City Council does not act before July 1, any increase to the assessment would require a vote of the property owners within the district. He noted that any type of vote would require a tremendous amount of staff time, and the proposed approach will limit the cost and time required. Council Member McGeorge stated that a common complaint throughout landscape districts each year is value received. He questioned whether volunteers were utilized this past year to inspect the districts to ensure proper maintenance. Mr. King related that staff attempted to get one resident from each district to walk the area and call the City with any concerns. In addition, four City volunteers made bi-monthly inspections utilizing a camera. In response to Council Member Murray, Mr. King stated that prior to the district consolidation there were 25 separate districts with assessments for properties within District B ranging from $70 to $200. Currently, however, all properties within District B would be required to pay a $70 annual assessment. He explained that staff attempted to place the high maintenance areas within District B. Council Member Murray concurred that complaints each year seem to focus on the quality of the landscape maintenance being provided. He suspected that certain residents are concluding that there is a disproportionate level of service. Council Member R. Anderson believed the discrepancy was between subdivisions with grass and those without grass. He believed there was a mixture of different types of landscaping within District B and suggested that staff review the matter further. Mr. King noted that in one subdivision the City will be removing the grass area by utilizing reserves which should lower the cost of maintenance. 05/06/97 101 Mayor P. Anderson determined that there was no one else present wishing to speak on the matter and closed the public'meeting. This was an informational meeting and no action was required. PUBLIC MEETING- Landscape Maintenance District C (A-170-075-052) The hour of 7:00 p.m. having arrived, Mayor P. Anderson opened the public meeting regarding Landscape Maintenance District C. The following documents are on file in the office of the City Clerk: Affidavit of Mailing -Notice of Public Meeting and Public Hearing Affidavit of Publication - Notice of Public Meeting and Public Hearing No protests were received for this district. Development Services Director Swanson explained that the purpose of the public meeting is to accept testimony regarding the proposed levying of annual landscape maintenance assessments for District C. He stated that a public hearing, as required by State law, will be held by the City Council on May 20, 1997, to hear concluding testimony and staff responses to both hearings. He related that staff is proposing a schedule of increases in lieu of considering a new calculated rate each year in order to take advantage of a"grandfather" clause which would exclude the district from the requirements of Proposition 218 if acted upon prior to the July 1, 1997, deadline. He indicated that the schedule of increases would not need to be considered annually and would only permit a maximum 4 percent annual increase thereafter. Senior Planner King related that a citizens panel was formed consisting of six residents from Districts A and B. After reviewing various alternatives, the committee developed a schedule of annual increases which are contained in the Report to City Council dated April 21, 1997, incorporated herein by reference. Mr. King stated that the proposed 1997-98 assessment for Landscape Maintenance District C is $8.00, representing an increase of$0.54. Mayor P. Anderson determined that there was no one present wishing to speak on the matter and closed the public meeting. This was an informational meeting and no action was required. PUBLIC HEARING-re General Plan Amendment Application GPA-2-97 and Rezoning Application RZ-4-97, by the California Department of Transportation (Southeast corner of Hilltop Drive and Dana Drive) (G-030-010 & L-010-230) The hour of 7:00 p.m. having arrived Mayor P. Anderson opened the public hearing regarding General Plan Amendment Application GPA-2-97 and Rezoning Application RZ-4-97. 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 April 22, 1997 City Clerk Strohmayer advised that no protests were received. Planning Manager Keaney provided an overview of the Report to City Council dated April 22, 1997, incorporated herein by reference, regarding a requst to amend the General Plan on 3.5 acres of land located south of Dana Drive and directly across from the traffic signal into the Mt. Shasta Mall from "Greenway"to"Retail Commercial" and to rezone the property from"U" Unclassified District to "C- 2-F" Central Commercial District with Site Plan Reviewing Combining District. It is the recommendation of both the Planning Commission and staff that the City Council approve the Negative Declarations, conceptually approve amending the General Plan to "Retail Commercial", direct staff to prepare an implementing resolution, conceptually approve rezoning said property to "C-2-F" Central Commercial District with Site Plan Review Combining District, and direct staff to 05/06/97 102 prepare an ordinance to be introduced at the same time as the resolution approving the General Plan amendment. Mayor P. Anderson determined that there was no one present wishing to speak on this matter and closed the public hearing. Council Member R. Anderson noted that the General Plan Amendment and rezoning will substantially increase the value of this property. He requested staff to contact representatives from Caltrans to determine whether any of the proceeds of the land sale would be spent in the Redding area. MOTION: Made by Council Member R. Anderson, seconded by Council Member Murray, that the City Council make the following findings regarding General Plan Amendment GPA-2-97 and Rezoning Application RZ-4-97: 1. Project is compatible with the Redding General Plan; 2. Project will not significantly alter existing land form; 3. Project is compatible with surrounding land use; 4. Project is compatible with the Code of the City of Redding, California; and approve the Negative Declarations authorized by the Development Services Department. The Vote: Unanimous Ayes MOTION: Made by Council Member R. Anderson, seconded by Council Member Murray, to conceptually approve General Plan Amendment Application GPA-2-97, amending the General Plan to "Retail Commercial", direct staff to prepare an implementing resolution for the General Plan Amendment, conceptually approve Rezoning Application RZ-4-97, rezoning said property to "C-2-F" Central Commercial District with Site Plan Review Combining District, and direct staff to prepare an ordinance to be introduced at the same time as the resolution approving the General Plan amendment. The Vote: Unanimous Ayes PUBLIC HEARING - re Draft Action Plan for 1997-98 Community Development Block Grant (CDBG)Funding (G-100-030-042) The hour of 7:00 p.m. having arrived, Mayor P. Anderson opened the public hearing regarding the 1997-98 Action Plan for the Community Development Block Grant (CDBG) funding. The following documents are on file in the office of the City Clerk: Affidavit of Publication -Notice of Public Hearing Community Development Advisory Committee recommendation dated May 6, 1997 City Clerk Strohmayer advised that no protests were received. Development Services Director Swanson highlighted the Report to City Council dated May 6, 1997, incorporated herein by reference, concerning the 1997-98 Action Plan for the Community Development Block Grant funding. He explained that total funds available are $1,175,215, $941,000 of which represents the 1997-98 allocation from the Department of Housing and Urban Development (H1.JD), $34,215 in unspent monies, and $200,000 in reallocated funds. He noted that the committee is also recommending that the unspent monies from the Parkview Neighborhood Project be applied to the Downtown Facade application. Acting Housing Manager Meek reviewed the Projected Use of CDBG Funds for 1997-98 Program Year and the 1997 Application Tracking Matrix showing all applications made for this funding cycle. He expressed appreciation to the Community Development Advisory Committee Members for their dedication and assistance. Rick Bosetti, Chair of the Community Development Advisory Committee, thanked the committee members, as well as staff, for their assistance. He related that all of this year's presentations were well prepared and it was difficult to determine how to allocate the monies. He believed one of the key elements to this year's process was the cooperation displayed between City departments and their ability to scale back certain projects, thereby achieving maximum benefit from the monies available. Mayor P. Anderson thanked each of the committee members for their time and service. 05/06/97 103 • Mr. Swanson believed the proposed action plan would go a long way toward improving the community's quality of life. Bob Nash, Superior California Economic Development District, commended both staff and the committee for their work on this year's action plan and their funding selections. He submitted a letter dated May 5, 1997, incorporated herein by reference, regarding the development of a Microenterprise Assistance Program targeted at low-income individuals. MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, that Resolution No. 97-081 be adopted, a resolution of the City Council of the City of Redding accepting the Action Plan for 1997-98 and authorizing the City Manager to sign all necessary documents and submit the plan to the U.S. Department of Housing and Urban Development. Voting was as follows: Ayes: Council Members -R. Anderson, Kehoe, McGeorge, Murray, and P. Anderson Noes: Council Members -None Absent: Council Members -None Resolution No. 97-081 is on file in the office of the City Clerk. PROPOSED SKATEBOARD PARK (P-050) Senior Planner Hanson provided an overview of the Report to City Council dated April 22, 1997, incorporated herein by reference, regarding a proposed skateboard park. He explained the Recreation and Parks Commission unanimously agreed that a skateboard facility should be provided. He stated that the Commission considered two locations: South City Park and Caldwell Park, as well as public liability, project cost and design, and maintenance. He acknowledged that the City is not in a position to fund the skateboard park, however, with the City Council's concurrence, the citizens' committee has accepted full responsibility for raising funds for the development of the park. It is the recommendation of staff that the City Council determine that providing a skateboard location and facility is in the City's best interest, and select the site for the facility in Caldwell Park adjacent to the Teen Center. It is further recommended that staff be directed to work with the Skatepark Committee and the Recreation and Parks Commission on the design and operation details of the park. Earle Humphrey, representing the Redding Kiwanis Club, related that the Redding Kiwanis Club is 100 percent behind the efforts to build a skateboard facility in Redding. He noted that skateboards can be purchased, however, there are no places for the youth to use them without facing possible citation. Carla Wells stated that there were skateboarders present this evening prepared to answer any questions, and she conveyed the following points: skateboarders are discouraged from practicing because of the fear of being cited;the community has provided areas for all other sports and it is time to provide an area for skateboards; the Skatepark Committee is dedicated to raising the funds necessary to build the facility; people have offered to donate both product and time to the project; the Committee looked at numerous skateboard parks and Santa Rosa's facility was the favorite; statistics show that lawsuits are minimal for these facilities and the facilities are basically policed by the skateboarders themselves; while final design approval should rest with the City, the design of the park should be left to the skateboarders. Sam Nelson, 3671 Sunwest, expressed appreciation to Risk Manager Mlinarcik for obtaining insurance for the skateboard facility through the joint powers pool. According to Mr. Nelson, if the Skateboard Committee had the flexibility of designing the facility, with an expert reviewing it, it could be built for a fraction of what other facilities have cost. Gab Davidson, Chair of the Site Selection Committee, emphasized the need for a skateboard park. He related that the committee has been working hard and raised $3,500 in donations to date. He stated that the Committee considered both South City Park and Caldwell Park and recommends that Caldwell Park be chosen as the location of the facility. He stressed that the City is only being requested to donate the land and the Committee will assume responsibility for the remainder of the project. 05/06/97 104 In response to Council Member Kehoe, Mr. Hanson replied that the Committee met with a professional designer who made it clear that the skateboarders should be involved in the design of the park and facilities. He related the only question is whether to use a local architect or someone with skateboard park design experience. In response to Council Member Murray, Mr. Hanson stressed that staff only intended to establish parameters under which the Committee would operate. He stated that the parameters could potentially influence insurance and liability issues, i.e., proper signage, but should not affect the type of facility or the design parameters. Council Member Murray suggested that the Committee be permitted to design the facility, develop a list of operating rules, and submit the items to the insurance underwriter for consideration. Council Member R. Anderson supported staff carrying the project forward from this point without any further action by the City Council. MOTION: Made by Council Member McGeorge, seconded by Council Member R. Anderson, determining that a skatepark location and facility is in the City's best interest, Caldwell Park adjacent to the Teen Center, should be selected as the site for said park, direct staff to work with the Skatepark Committee and Recreation and Parks Commission on the design and the park's operation details, and authorize staff to carry the project forward without requiring any further authorization or approval by the City Council. The Vote: Unanimous Ayes Mr. Warren explained that he has been associated with skateboard parks in previous communities and noted that there are five key ingredients which go into a successful facility, which results in enormous benefits to the community: (1) planning is done by the skateboarders themselves; (2) everyone participates in the fundraising activities; (3) there is community involvement; (4) skateboarders use the skateboard park rather than business areas; and (5)the skateboarders monitor the park to ensure there are no problems. While the park is primarily utilized by youth, he noted that the facility also provides entertainment for the adults. He congratulated the Committee for their work and also the City Council for moving this project forward. Carla Wells expressed appreciation to the City Council for its support of the project. She noted that an account has been established at the City's Recreation and Parks Department for community donations. At the hour of 8:26 p.m., Mayor P. Anderson declared the meeting recessed. At the hour of 8:32 p.m., Mayor P. Anderson reconvened the meeting to regular session. FUNDING ALTERNATIVES FOR STREET LIGHTS (E-090-150 & B-130-070) City Manager Warren provided an overview of the Report to City Council dated May 2, 1997, incorporated herein by reference, regarding funding alternatives for street lighting within the City. He related that if the full cost associated with street lights, which totals approximately $1-2 million annually, was transferred from the Electric Utility to the General Fund, electric rates could be reduced approximately 2 percent for all users or 4 percent for non-residential customers only. Mr. Warren recommended that the City Council not transfer the street lighting costs from the Electric Utility to the General Fund because the negative implications associated with the potential reductions in the General Fund outweigh the benefits to the Electric Utility and its customers. Council Member Kehoe recalled that he opposed the transfer of the street lighting from the General Fund to the Electric Utility in 1994 and he continues to oppose it. He supported gradually transferring the street lighting cost from the Electric Utility to the General'Fund at the 50 percent or lower level. Council Member R. Anderson related that he opposed the transfer of street lighting from the General Fund to the Electric Utility in 1994 primarily because of his opposition to shifting costs whenever a fund is in need. He-suggested that a proper compromise might be to split the street lighting cost 05/06/97 105 50/50 between the General Fund and the Electric Utility, thus recognizing that both funds benefit from the street lighting. Council Member McGeorge did not support transferring any of the street lighting cost to the General Fund. He opined that departments are already being requested to make reductions in their budgets and another $1.2 million reduction in the General Fund could potentially require a reduction in services. While he concurred with Council Member Kehoe's comments, Council Member Murray did not favor transferring the street lighting cost to the General Fund at this time. He did, however, support phasing in such a charge to the General Fund at some point in the future but wanted to review it in context with the General Fund's Ten-Year Plan. Council Member Kehoe opined that the staff report could have explored revenue generating alternatives as a result of examining corollary issues, i.e., assessing a larger late payment fee. Mr. Perry replied that staff will be preparing a report which contains information relative to these issues for the City Council's consideration. Carl Arness stated that no one mentioned the fact that the $5 fire hydrant fee was absorbed by the Water Utility in an effort to generate revenue. Given the condition of our street system, he found it hard to view the General Fund's excess funds as actual "reserves." He stressed the need for the City Council to consider public safety and service reduction as a result of transferring the cost of street lighting back to the General Fund. Council Member Murray requested that staff prepare a report which outlines all costs which, at one time or another, have been shifted between funds. MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge, to direct staff not to transfer the street lighting cost from the Electric Utility to the General Fund and prepare a report for consideration during budget deliberations which sets forth what percentage of the street lighting cost should be shared and how such an expenditure would fit into the General Fund's Ten-Year Financial Plan. Voting was as follows: Ayes: Council Members - R. Anderson, McGeorge, Murray, and P. Anderson Noes: Council Members - Kehoe Absent: Council Members =None RESOLUTION - City Council Policy Adopting Electric Utility Lifeline Rate (A-050-060-555 & E-090-100) Assistant City Manager Perry provided an overview of the Report to City Council dated April 29, 1997, incorporated herein by reference, regarding the establishment of a Lifeline Rate Program for electric customers. He related that staff has drafted a City Council Policy which provides for the following: (1)The lifeline rate will be a 20 percent discount on the sum of the Electric Utility service charge, the interim rate surcharge, and the first 600 kWh usage for qualified customers, on a first come, first-served basis; (2) The lifeline rate will be available to senior citizens (age 62 or older), to disabled customers, and to households whose maximum household income does not exceed the very low income level limits most recently published by the California State Department of Housing and Community Development and as determined by the number of household members. Very low income is set at 50%of the area wide median income level; (3)For qualified applicants who apply before July 5, 1997, the lifeline rate will be retroactive to April 26, 1997; and (4) Funds for the program will be considered to be applicable to the"Public Goods Charge" as mandated by AB 1890. He further noted that the policy is written to sunset when the surcharge terminates. Council Member R. Anderson opined that the program, at inception, should only be offered to senior citizens and disabled individuals. He further stated that he could not support a program which required high administrative costs. Rather than utilizing volunteers to verify an applicant's income, he suggested having the applicant sign a sworn affidavit that he/she meets the income requirements. He further recommended that it might be appropriate to offer assistance based on kilowatt usage. Mayor P. Anderson concurred that it might be beneficial to set a maximum on the kilowatt usage. 05/06/97 106 Council Member Murray supported making the program available to as many individuals as possible within the framework of available funding. He acknowledged the importance of maintaining low administrative costs, however, he did not like the criteria requirements noted on the proposed application, i.e., documentation of any owned assets, checking accounts, savings accounts, etc. Council Member R. Anderson concurred. Council Member Murray opined that the eligibility criteria ought to be driven by income level and/or proof of disability. He supported using a 60 percent income median, rather than 50 percent. He also recommended that those individuals receiving a housing subsidy should not be eligible under this program, as they are already receiving credit toward their utility bills. He reiterated that an individual should qualify for this program based on income or a disability versus personal assets. Mayor P. Anderson preferred starting the program using the 50 percent income median and expanding the program at a later date if finds are available. Council Member McGeorge supported starting the program using the 50 percent income median. Council Member R. Anderson reiterated his belief that the program should only be available to senior citizens and disabled individuals. MOTION: Made by Council Member Murray, seconded by Council Member Kehoe, that Resolution No. 97-082 be adopted, a resolution of the City Council of the City of Redding adopting City Council Policy No. 1407: Electric Utility Lifeline Rate, with the following modifications: (1) the initial program should include individuals over 62 years of age or disabled based on the 50 percent median income level; (2) staff is to develop the appropriate minimum screening criteria based on income only; (3) individuals receiving housing assistance shall not be eligible to receive benefits under the program; and (4) review program in 60 days to'determine whether the categories should be expanded. Voting was as follows: Ayes: Council Members - R. Anderson, Kehoe, McGeorge, Murray, and P. Anderson Noes: Council Members-None Absent: Council Members -None Resolution No. 97-082 is on file in the office of the City Clerk. POTENTIAL PARTNERSHIPS BETWEEN REDDING ELECTRIC UTILITY AND OTHER ENTITIES (E-090) Assistant City Manager Perry provided an overview of the Report to City Council dated April 29, 1997, incorporated herein by reference, regarding potential partnerships between the Redding Electric Utility and other entities. He stated that it is important that the City and the Electric Utility demonstrate that they are doing everything.possible to reduce customer costs. He noted that one possible method of achieving these objectives is for the City to partner with another entity when a mutually beneficial arrangement can be made. Mr. Perry summarized that absent a specific proposal, exploring partnership arrangements appears to be in the interest of the City and its electric customers. It is, therefore, recommended that staff be authorized to investigate potential partnership arrangements in both traditional and non-traditional areas of business for review by the City Council at the appropriate time. If the City Council concurs, it is recommended that staff be authorized to explore opportunities by both direct contacts and requesting proposals for specific services. Council Member R. Anderson noted the importance of having the Mayor involved with these types of activities. He expressed concern over staff's ability to deal with other entities and stressed the need to fill the Electric Utility Director position. He opined the salary being offered by the City for this position may be too low. In response to Council Member Kehoe, Mr. Perry stated that staff would be bringing back reports dealing with the corollary issues raised by the citizen's committee for the City Council's consideration. 05/06/97 107 City Manager Warren related that a number of applications have been reviewed for the Electric Utility Director position, however, none have met the description. He believed that this could, in part, be attributed to the salary being offered. He stated that he asked the recruiter to provide names of candidates who may not meet the salary requirements and that he will be interviewing a couple of candidates in the next two weeks. If necessary, he explained that he would request the City Council to consider adjusting the position's salary range. Council Member Murray stressed that the City Council appreciates the efforts of the Electric Utility's staff and he commended staff for their excellent ideas presented over the past several months. He noted that the Electric Utility is approximately six positions short and did not believe the hiring of an Electric Utility Director would solve all of the problems. Council Member R. Anderson concurred that staff has done an excellent job of running the Electric Utility under a monopoly situation; however, he believed that with deregulation, it will be necessary to hire a Director who has experience in a competitive climate. MOTION: Made by Council Member Murray, seconded by Council Member Kehoe, to authorize staff to explore potential partnership arrangements in both traditional and non-traditional areas of business for review by the City Council at the appropriate time by both direct contacts and requesting proposals for specific services. The Vote: Unanimous Ayes RESOLUTION - Modifying Electric Utility Service Policy (E-090-125) Assistant City Manager Perry highlighted the Report to City Council dated April 30, 1997, incorporated herein by reference, regarding the modification of the Electric Utility Service Policy to transfer the cost of transformers, 12kV cable, and associated materials to the developer/customer. He explained that this transfer of cost is anticipated to be approximately $600,000 and is necessary to support the two percent non-residential rate reduction approved by the City Council. He noted that a separate account will be established to accumulate this revenue and determine the actual level of developer contribution each year. It is further recommended that a sunset clause be added in which the proposed modification would terminate one year after the expiration of the rate reduction surcharge approved by the City Council on April 1, 1997, or when the revenue received for material charges reaches $4.32 million. Mr. Perry indicated that the proposed policy modification would be effective May 7, 1997, and allows for existing projects which have signed improvement plans, an approved building permit, or a prior Electric Utility service commitment letter. He stated that it would take approximately one year for the existing commitments to be phased out; thus, the actual first-year savings are estimated to be $100,000. In response to Council Member Murray, Mr. Perry explained that staffs recommendation was based on the Builders' Exchange request for the City to restore this funding once the debt had been paid and the surcharge sunsets. He noted that the subsidy encourages growth which, in turn, increases the property tax base. Council Member Kehoe recalled that the City Council's decision to reduce non-residential rates by 2 percent was based on a $600,000 savings from the building community. He questioned how staff proposed to make up for the $500,000 shortfall the first year. Mr. Perry explained that the dollar amount would net out over the term of the policy. He stated, however, that the$500,000 shortfall the first year may require additional budget reductions or a rate increase sooner than anticipated. He clarified that the potential shortfall was outlined at the last City Council meeting. Council Member Kehoe opposed any further rate increases. Kent Dagg, Executive Director of the Shasta Builder's Exchange, thanked staff for their assistance in developing a policy which all parties could support. He stressed that the Builders' Exchange's support of the $600,000 reduction to the development community was predicated upon a sunset provision. He noted that while there are current projects which are not prepared to absorb the $500,000 reduction, the amount will be paid by the time the policy sunsets. 05/06/97 r- 108 Council Member Murray believed the sunset provision would distort the real estate market and cause more problems than it would solve, therefore, he opposed a sunset provision. Council Member Kehoe stated that the rationale for providing a sunset provision was based on economic development considerations. He indicated that the City should include contributions such as this when talking about its total dollar contribution to economic development. Motion made by Council Member Murray to modify the Electric Utility Service Policy to transfer the cost of transformers, 12kV cable, and associated materials to the developer/customer without a sunset provision died due to lack of a second. MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, that Resolution No. 97-083 be adopted, a resolution of the City Council of the City of Redding establishing a new Electric Service Policy for service to customers within the service area of the City of Redding Electric Utility, effective May 7, 1997, thereby providing for the transfer of the costs of transformers, 12kV cable, and associated materials to the developer/customer and such transfer shall terminate one year after expiration of the rate reduction surcharge approved by the City Council on April 1, 1997, or when the revenue received for material charges reaches $4.32 million. Voting was as follows: Ayes: Council Members -R. Anderson, Kehoe, McGeorge, and P. Anderson Noes: Council Members - Murray Absent: Council Members -None Resolution No. 97-083 is on file in the office of the City Clerk. MONTHLY FINANCIAL REPORT - re General Fund (B-130-070) Deputy City Manager Starman highlighted the Report to City Council dated April 22, 1997, incorporated herein by reference, concerning the General Fund's Monthly Financial Report for March 1997. Total revenue to date ($23.8 million) is slightly below (1.5 percent) staff's original cash flow estimate. Expenditures to date (excluding encumbrances) total $24,916,502 or $1,754,642 (6.6 percent)below staff's original cash flow projection. It is the recommendation of staff that the City Council accept the Monthly Financial Report for March 1997. MOTION: Made by Council Member Kehoe, seconded by Council Member P. Anderson, to accept the General Fund's Monthly Financial Report for March 1997. The Vote: Unanimous Ayes MONTHLY FINANCIAL REPORT - re Electric Utility (B-130-070) Deputy City Manager Starman provided an overview of the Report to City Council dated April 21, 1997, incorporated herein by reference, regarding the Electric Utility's Monthly Financial Report for March 1997. It is the recommendation of staff that the report be accepted as presented. MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge, to accept the Electric Utility's Monthly Financial Report for March 1997 as presented. The Vote: Unanimous Ayes METAL BUILDINGS TASK FORCE - Final Report (A-050-250-030) Development Services Director Swanson provided an overview of the Report to City Council dated April 15, 1997, incorporated herein by reference, regarding the findings and recommendations of the Metal Buildings Task Force. Building Official Nagel stated that the Task Force recommended that the City take a proactive approach and implement the following steps: 05/06/97 109 (1) The applicant will assign an architect or engineer of record to the job. The architect or engineer of record will be responsible for reviewing and coordinating all submittal documents prepared by others for compatibility with the design of the building; (2) Initial screening of permit applications for completeness will take place by City staff. There will be a preliminary check to make sure that all of the necessary plans and calculations have been submitted and that the plans from all of the various engineers and architects involved are consistent. This will be done within two days of submittal; (3) The City has developed a commercial plan check submittal checklist to inform building permit applicants what is required on plans; (4) City staff will follow the Plan Review Guidelines for Manufactured Metal Buildings prepared by the Sacramento Valley Chapter of International Conference of Building Officials, when conducting plan reviews; (5) A reasonable level of plan check will be provided by City staff that will result in a safe, well- built building. This will include review of details necessary to ensure the strength and stability of the building, but not in an overly detailed and extensive plan review; (6) City plan check comments will be written on plan check correction sheets. This will allow comments to be faxed. It will be much easier to determine if plan check comments are new or if the design engineer has not responded to them; (7) City staff will provide Building Code sections on plan check comments where deemed appropriate; (8) Applicants must address each plan check comment with a note describing what page to look for on structural calculations for the changes and where to look on the building plans for any revisions. They must cloud and date all revisions on the plans with a delta by the design team; (9) City staff will screen plan check comment responses at the counter to make sure the permit applicant has responded to the plan check comments; (10) City Plan Checkers will document on correction lists any corrections that they previously asked for and were not corrected by the applicant; (11) The project owner will be kept informed of the project status. If a project fails plan check two times, staff will schedule a meeting to discuss how to solve any remaining issues; (12) City staff will provide documentation on project time lines that will measure time of plan check cycles and time for the applicant to make revisions and resubmit plans; and (13) All project meetings will be open to observation by a Shasta Builders' Exchange representative. Mr. Nagel related that staff and the Builders' Exchange will monitor the situation to ensure that the changes are effective and decide whether there is a need for any further action. Council Member Kehoe commended those individuals who participated on the Task Force for a job well done. He asked staff to prepare a follow up report for the City Council's consideration in January 1998. This was an information item only. No action was required. AWARD OF BID - Bid Schedule No. 3088, Library Park Renovations RESOLUTION - Appropriating Funds * (B-130-070 & B-050-020 & P-050-300) Senior Planner Hanson highlighted the Report to City Council dated April 25, 1997, incorporated herein by reference, concerning the award of Bid Schedule No. 3088, Library Park renovations, and appropriating supplemental funds. He stated that the low bid was received from Major Construction of Redding in the amount of$279,036.70. He explained that the low bid exceeds available funds by $29,886.70 and providing for inspection and contingency requires an additional $29,000, increasing the deficiency in funding to $58,886.70. Mr. Hanson indicated that there was a$19,000 savings in Phase 1 of the South Market Median Island project which could be transferred to Library Park. He further noted that staff has identified potential cost savings of$33,700, which include the elimination of the drinking fountain ($2,500) and light bollards($31,200). He related that once the contract is awarded, staff can negotiate change orders with the contractor in an attempt to reduce the contract accordingly. He said that to award the contract would require a supplemental appropriation in the amount of$40,000 from the Park 05/06/97 r- 110 Development Fund, of which only $6,200+ may be used for the project if the change orders are executed. If change orders are kept to a minimum, it is possible that no Park Development Funds will be necessary. It is the recommendation of staff that the City Council take the following action: (1) award Bid Schedule No. 3088, Library Park renovations, to Major Construction in the amount of$279,036.70; (2)direct staff to pursue reducing the contract by eliminating the drinking fountain ($2,500) and the light bollards ($31,200); (3) authorize the transfer of$19,000 in Community Development Block Grant funds from the Market Street Island Median project to Library Park; and (4) appropriate an additional $40,000 for the Library Park Renovation Project. In response to Council Member R. Anderson, Mr. Wingate stated that staff could not legally negotiate changes to the contract until it has been awarded; furthermore, the contractor is not legally required to negotiate any changes once the contract is awarded. In response to Council Member Murray, Mr. Hanson believed the compressed time frame and the $1,000 per day in liquidated damages contributed to higher bids being received. Jan Kearns, President of Renaissance Redding, reported that 1,689 bricks were sold and are anticipated to be delivered by May 15, 1997. She presented the City Council with a check in the amount of $26,000 to go toward designated Library Park improvements. She acknowledged members of Renaissance Redding for their efforts on this project. Mr. Hanson noted that $8,000 of the $26,000 has been set aside for the lighting of the future stage structure being donated by the Shasta Builders' Exchange. Marie Rutucci,Executive Director of the Shasta Housing Development Corporation; stated that the Shasta Housing Development Corporation fully supports the renovation of Library Park. She presented the City Council with a check in the amount of$2,500. Keith Berry, owner of Westside Station, indicated that Westside Station would also donate $1,000 toward the park's renovation and challenged everyone to match his donation. Council Member Kehoe requested that staff contact the media regarding the community's generosity to Library Park. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, to approve the following: (1) award Bid Schedule No. 3088, Library Park renovations, to Major Construction in the amount of$279,036.70; (2) direct staff to pursue reducing the contract by eliminating the drinking fountain ($2,500) and the light bollards ($31,200); (3) authorize the transfer of$19,000 in Community Development Block Grant funds from the Market Street Island Median project to Library Park; and (4) adopt Resolution No 97-084, a resolution of the City Council of the City of Redding approving and adopting the 36th amendment to City Budget Resolution No. 96-130 to appropriate an additional $40,000 for the Library Park Renovation Project. Voting was as follows: Ayes: Council Members -R. Anderson, Kehoe, McGeorge, Murray and P. Anderson Noes: Council Members -None Absent: Council Members -None Resolution No. 97-084 is on file in the office of the City Clerk. CONTRACTS - re Design of the Turtle Bay Pedestrian Bridge (F-0-59-460-700) 5-070-060-500 Senior Planner Hanson highlighted the Report to City Council dated May 1, 1997, incorporated herein by reference, regarding the contract with Dr. Santiago Calatrava Valls for professional engineering services to design the Turtle Bay Pedestrian Bridge and the Funding Reimbursement Agreement with The McConnell Foundation. City Attorney Wingate stated that he reviewed the Funding Reimbursement Agreement with The McConnell Foundation late this afternoon and recommended that the City Council authorize the Mayor to sign both the contract for professional engineering services with Dr.Santiago Calatrava 05/06/97 111 Valls and the Funding Reimbursement Agreement with The McConnell Foundation, committing The McConnell Foundation to cover all contract costs and provide for reimbursement to the City as invoices for payment are received by the engineer. MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, to authorize the Mayor to sign both the contract for professional engineering services with Dr.Santiago Calatrava Valls and the Funding Reimbursement Agreement with The McConnell Foundation relative to the Turtle Bay Pedestrian Bridge. The Vote: Unanimous Ayes POSSIBLE PUBLIC-PRIVATE PARTNERSHIP IN REDEVELOPMENT OF HOLIDAY INN ON HILLTOP DRIVE (E-050) Council Member Kehoe abstained from discussion and voting on this matter. Community Services Director Gorman provided an overview of the Report to City Council dated April 30, 1997, incorporated herein by reference, regarding the exploration of a public-private partnership in the redevelopment of the Holiday Inn on Hilltop Drive. He explained that a report commissioned by the Forward Redding Foundation showed that Redding could increase its convention business by 10 to 15 conventions annually and create substantial beneficial economic impact if it could develop or cause to be developed approximately 56,000 square feet of additional convention space. He related that the report also referred to a "unique situation," in a potential partnership with Meyer Motels, Ltd. (MND.), in the redevelopment of the Holiday Inn property on Hilltop Drive. He indicated that if the City worked with MML, it could theoretically accomplish the additional space for about one-half of the cost that would be incurred in starting from scratch. It is the recommendation of staff that the City Council direct staff to discuss a possible public-private partnership with MML in the redevelopment of the Holiday Inn and return to the City Council with a product of that discussion, as well as with a recommendation as to how that participation might be financed. He noted that staff would not consider any such discussions to be exclusive and staff would consider and report the results of any similar discussions. Dr. Allen Krohn, representing the Forward Redding Foundation, explained that the Forward Redding Foundation commissioned a consulting study of possible demand for new convention facilities in Redding in order to avoid possible conflict; of interest and biased results. He stated that it is clear there is a market for new facilities and the economic benefits would be substantial. He recognized that the cost of new convention facilities would be cost prohibitive and would require a bond issue and he was not prepared to make such a recommendation. He stressed that the Forward Redding Foundation is not united with one particular individual, but is, however, recommending that the City consider a public-private partnership with MML because of the project's timing. He conveyed that a public-private partnership would be nothing but positive. He noted that staff's recommendation would allow staff to identify matters which need further consideration and ensure that the criteria of the commissioned study are met. He urged the City Council to proceed with staff's recommendation. Council Member R. Anderson stated that his main concern was the impact on the City. He did not believe the City was in a position to undertake projects which have a fiscal impact on the City. While he favored a new convention center, he did not believe the timing was right. He indicated it would be important to define the expected operational shortfall and possible funding sources. He favored the major hotels and restaurants forming a private corporation, wherein 66 percent of the additional revenue is expected to go back to the motels/hotels and restaurants, thereby limiting the impact to the City. He stressed that the City should not mislead MML to believe the City will have extra funds for this project. He urged the City to expedite conversations with MML so as not to delay its construction activity. Mr. Gorman stated that MML is aware that the City has no additional funds available. He explained that the strategy being pursued is to use the additional revenue being received by the City through the proposed expansion for capital buy down or payment of a lease agreement. He related that this additional revenue would not be received by the City if the expansion did not proceed. Council Member R. Anderson wanted to be cautious about setting a precedent and having other motels approach the City regarding the use of additional revenue generated by expansions to actually fund the expansion. 05/06/97 r- 112 Mr. Gorman stressed that staff is only suggesting proceeding with conversations to determine whether a public-private partnership is even feasible. Council Member R. Anderson asked staff to contact other cities to determine whether similar joint ventures have been undertaken and, if so, whether they were successful. Mayor P. Anderson requested staff to provide a year-by-year financial analysis. Council Member McGeorge noted that there are many requests from other organizations to participate in joint venture projects. He suggested a workshop to discuss which projects the City's limited revenues should be spent on. Mayor P. Anderson stated that whatever action the City Council takes should have a neutral impact on the General Fund. Mr. Gorman assured the City Council that staff is pursuing all proposals with equal thoroughness and any additional proposals will be brought back for the City Council's consideration. Council Member Murray noted that the Forward Redding Foundation is attempting to create opportunities in the community through a public/private partnership. He stressed the need to act like business people, while at the same time governing the City's limited resources. He believed there was several ways a deal could be structured. He suggested forming a City Council subcommittee to work with the Forward Redding Foundation and staff in developing alternatives for the City Council's consideration. Council Member McGeorge recommended reviewing any other proposals at the same time the MML proposal is brought back to the City Council for consideration. Council Member R. Anderson suggested that staff pursue the proposal further and, if necessary, the Mayor could appoint a City Council subcommittee at a later date. It was the consensus of the City Council for staff to discuss a partnership agreement with MML for the redevelopment of the Holiday Inn, keep the Mayor apprised of discussions and, if necessary, appoint a City Council subcommittee, and request staff to include in future reports any similar offers made by other businesses which should also be considered. ORDINANCE - Amending Redding Municipal Code Chapter 9.12, Emergency Organization and Functions (P-150-070) Fire Chief Wagner provided an overview of the Report to City Council dated April 21, 1997, incorporated herein by reference, regarding amendments to Redding Municipal Code Chapter 9.12 in order to bring the City into compliance with statutory and regulatory changes which have occurred at the State level and to ensure the City is compliant with the Standardized Emergency Management System. It is the recommendation of staff that the City Council offer the necessary ordinance for first reading and waive the full reading of said ordinance. Council Member Murray offered Ordinance No. 2179 for first reading, an ordinance of the City Council of the City of Redding revising Redding Municipal Code Chapter 9.12, emergency organizations and functions, ensuring compliance with statutory and regulatory changes and the Standardized Emergency Management System. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, that the full reading of Ordinance No. 2179 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes 05/06/97 113 PUBLIC COMMENT (E-090-100) Frances Jenkins, 2652 Sharon Street, stated that it is important for the City to define income with regard to providing proof of income for the Lifeline Rate Program, especially given the amount of money senior citizens spend on medical expenses. She also recommended that volunteers not be used to verify income eligibility. CLOSED SESSION (P-100-050-124 & P-100-050-125 & P-100-050-126 & L-100) Mayor P. Anderson stated that the City Council would be adjourning to closed session to discuss the following: (a) Closed session pursuant to California Government Code Section 54957.6: CONFERENCE WITH LABOR NEGOTIATOR Agency Negotiator: Randy Bachman Employee Organization: - Redding Employees Organization of the Service Employees International Union Clerical, Technical, and Professional Employees' Unit - Redding Employees Organization of the Service Employees International Union Supervisors Unit - Redding Employees Organization of the Service Employees International Union Confidential Unit (b) Closed session pursuant to California Government Code Section 54956.9(a): CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Anita Cabrera and Thomas Provine v. City of Redding, et al., Shasta County Superior Court, Case No. 129347 At the hour of 10:42 p.m., Mayor P. Anderson adjourned the meeting to closed session. At the hour of 10:59 p.m., Mayor P. Anderson reconvened the meeting to regular session. No action was taken. ADJOURNMENT There being no further business, at the hour of 10:59 p.m., Mayor P. Anderson declared the meeting adjourned. APPROVED: Mayor ATTEST: City Clerk / 05/06/97