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HomeMy WebLinkAboutMinutes - City Council - 1997-05-20r- 114 Redding City Council, Regular Meeting City Council Chambers 1313 California Street Redding, California May 20, 1997 7:00 p.m. The Pledge of Allegiance to the flag was led by Deputy City Manager Kurt Starman. The invocation was offered by Pastor Curt Thomas, Bethel Church. The meeting was called to order by Mayor P. Anderson with the following City 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, Electric Program Supervisor Graves,Police Captain Byard, Deputy City Manager Starman, Community Services Director Gorman, Superintendent-Wastewater Craig, Senior Planner King, City Clerk Strohmayer, and Secretary to the City Council Rudolph. PRESENTATION OF APPRECIATION PLAQUE -Planning Commissioner Don Rehn (B-080-300) Mayor P. Anderson presented Don Rehn with an appreciation plaque for his four years of service on the City's Planning Commission. Mr. Rehn thanked the City Council for the opportunity to serve on the Planning Commission. He stated that due to changes within the telecommunications market he does not have sufficient time to continue serving on the Commission. No action was required. CONSENT CALENDAR Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 22, for the period May 1, 1997, through May 15, 1997, check numbers 247292 through 247902 inclusive, in the amount of$6,347,166.43, and Payroll Register No. 22, for the period April 20, 1997, through May 3, 1997, check numbers 435558 through 436083 inclusive, and electronic deposit transaction numbers 37574 through 37943, totaling $1,279,506.02, be approved. TOTAL: $7,626,672.45 Ordinance No. 2179 - re Revisions to Redding Municipal Code Chapter 9.12, Emergency Organization and Functions (P-150-070) It is recommended that Ordinance No. 2179 be adopted, an ordinance of the City Council of the City of Redding revising Redding Municipal Code Chapter 9.12, Emergency Organization and Functions, thereby ensuring compliance with statutory and regulatory changes and the Standardized Emergency Management System. Public Parking Lot No. 3 - Asking Price (C-070-200 &P-030) It is the recommendation of the Assistant City Manager that the City Council reduce the asking price for Parking Lot No. 3 to the fair market value, $140,000, and that adjacent property owners be advised of the new asking price. Property Tax and Tax-Increment Audit Services (T-010-650 & R-030-010) It is the recommendation of the Assistant City Manager that the City Council authorize staff to prepare and send out Requests for Proposal(RFP)for a property tax and tax-increment audit service for both the City of Redding and the Redding Redevelopment Agency and notify Municipal Resource Consultants(MRC)of the City Council's decision to obtain new proposals for these services and the fact that MRC is eligible to submit a proposal. 05/20/97 115 Request to Purchase City-Owned Land-by Tom Crean (Northeast corner of Shasta View Drive and Hartnell Avenue) (C-070-200) It is the recommendation of the Assistant City Manager that the City Council refer the City-owned property located at the northeast corner of Shasta View Drive and Hartnell Avenue to all departments and to the Planning Commission for a General Plan consistency determination and recommendation regarding deed restrictions to be placed on the property for future development, either as a single parcel or if merged with the adjoining property. Award of Bid - Bid Schedule No. 3096, 15kV Cable (B-050-100) It is the recommendation of the Assistant City Manager that Bid Schedule No. 3096, 15kV cable, be awarded to Pirelli Cable Corporation in the evaluated amount of$269,997.60 for the period of July 1, 1997,to June 30, 1998, and that the Purchasing Officer be authorized to extend the contract one year at the same prices, terms, and conditions if deemed prudent and mutually agreeable to Pirelli Cable Corporation. Funds for these purchases are included in the proposed 1997-98 fiscal year budget. Award of Bid - Bid Schedule No. 3097, Treated Wood Poles (B-050-100) It is the recommendation of the Assistant City Manager that Bid Schedule No. 3097, treated wood poles, be awarded to Taylor Lumber&Treating, Inc., in the evaluated amount of$90,491.00, for the period of July 1, 1997, to June 30, 1998. Funds for these purchases are included in the proposed 1997-98 fiscal year budget. Award of Bid -Bid Schedule No. 3098, Electric Power Metering Equipment (B-050-100) It is the recommendation of the Assistant City Manager that Bid Schedule No. 3098, electric power metering equipment, be awarded as follows: (1) Bid Group 1 to GE Supply in the amount of $65,401.32; (2)Bid Group 2 to WESCO Distribution, Inc. in the amount of$23,779.00; and (3) Bid Group 3 to GEC Durham Industries, Inc. in the amount of$9,975.25. Funds for these purchases are included in the proposed 1997-98 fiscal year budget. Award of Bid - Bid Schedule No. 3099, Electronic Recording Meters (B-050-100) It is the recommendation of the Assistant City Manager that Bid Schedule No. 3099, electronic recording meters, be awarded to Westinghouse Electric Supply Company in the amount of$45,500. Funds for this purchase are included in the proposed 1997-98 budget. Accept Report - re Corollary Electric Issues (E-090) It is the recommendation of the Assistant City Manager that the Report to City Council dated May 14, 1997, incorporated herein by reference, regarding work to date on the corollary electric issues be accepted as presented. Resolution- Ordering Abatement of Property at 2215 Grape Avenue, Owned by Jerry L. and Jacki E. Wyrick (A-030-070) It is the recommendation of the Development Services Director that Resolution No. 97-085 be adopted, a resolution of the City Council of the City of Redding approving the report and findings of the Board of Appeals and ordering the abatement of the unsafe and unsightly debris on property at 2215 Grape Avenue, owned by Jerry L. and Jacki E. Wyrick. Resolution-Ordering Abatement of Property at 832-846 Junior Street, Owned by Damian L. Seiler (A-030-070) It is the recommendation of the Development Services Director that Resolution No. 97-086 be adopted, a resolution of the City Council of the City of Redding approving the report and findings of the Board of Appeals and ordering the abatement of the unsafe and unsightly debris on property at 832-846 Junior Street, owned by Damian L. Seiler. 05/20/97 116 Resolution-Intention to Begin Abatement Proceedings at 1023, 1025, and 1027 Parkview Avenue, owned by Robert M. Netherland (A-030-070) It is the recommendation of the Development Services Director that Resolution No. 97-087 be adopted, a resolution of the City Council of the City of Redding to begin abatement proceedings on the real property located at 1023, 1025, and 1027 Parkview Avenue, currently owned by Robert M. Netherland. Development Services Department Monthly Activity Report - April 1997 (A-050-122) It is the recommendation of the Development Services Director that the Development Services Department's Monthly Activity Report through April 1997 be accepted for 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. Cable Service Rate - Increase by TCI (T-040-050) It is the recommendation of the Community Services Director that given the fact that the change in the rate for basic service represents a decrease of$0.01 and that basic is the only portion of the rate that the City may regulate, that the City Council not exercise its option to regulate the rate for basic service at this time. Status Report - re Emergency Access to the Convention Center/Turtle Bay (C-050-050) It is the recommendation of the Community Services Director that the City Council accept the status report dated May 14, 1997, incorporated herein by reference, regarding emergency access to the Convention Center/Turtle Bay. Grant Application - re Mobile Cleanup Program (G-100 & P-150-150) It is the recommendation of the Police Chief that the City Council authorize the submittal of a grant application to The McConnell Foundation for equipment for a mobile cleanup program. Resolution - Purchase of Automated Refuse Containers (B-050-100 & S-020-100) It is the recommendation of the General Services Director that Resolution No. 97-088 be adopted, a resolution of the City Council of the City of Redding authorizing the purchase of 506 automated refuse containers at $44.60 per container through the City of Manteca's contract with Toter, Inc. Resolution - Appropriating Funds from Fleet Maintenance Division Reserve Fund to Various Fleet Maintenance Accounts *(B-130-070 & A-050-150-150) It is the recommendation of the General Services Director that Resolution No. 97-089 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 33rd amendment to City Budget Resolution No. 96-130 to appropriate $223,200 to correct overbudget conditions in Fleet Maintenance. Notice of Completion - Bid Schedule No. 3053, Installation of Sidewalk Ramps (B-050-020) It is the recommendation of the Public Works Director that Bid Schedule No. 3053 (Job No. 8650- 30), installation of sidewalk ramps, awarded to Ron Hale Construction, be accepted as satisfactorily completed and the City Clerk authorized to file a Notice of Completion. The final contract price is $88,568.28. Award of Bid - Bid Schedule No. 3094, Water Meters (B-050-100) It is the recommendation of the Public Works Director that Bid Schedule No. 3094 (Job Nos. 5221- 10 and 5204-15), water meters, be awarded as follows: Pacific Water Works of Puyallup, Washington, for Items 1 and 7, and Badger Meter, Inc., of Denver for Items 2, 3, 4, 5, 6, 8, and 9 in the amounts set forth in the bid tabulations contained in the Report to City Council dated May 6, 1997, incorporated herein by reference. Funds for these purchases are included in the proposed 1997-98 budget. 05/20/97 117 Award of Bid - Bid Schedule No. 3091, Liquid Cationic Polymer (B-050-100) It is the recommendation of the Public Works Director that Bid Schedule No. 3091 (Job No. 5203- 15), liquid cationic polymer,be awarded to Polydyne, Inc. of Parsippany, New Jersey, in the amount of$0.3266 per pound. Funds for these purchases are included in the proposed 1997-98 budget. Award of Bid - Bid Schedule No. 3092, Liquid Chlorine (B-050-100) It is the recommendation of the Public Works Director that Bid Schedule No. 3092 (Job Nos. 5203- 15, 5330-32, and 5340-32), liquid chlorine, be awarded to All Pure Chemical Company of Tracy, California, in the amount of$399 per ton for one or more tons. Funds for these purchases are included in the proposed 1997-98 fiscal year budget. Award of Bid - Bid Schedule No. 3090, Liquid Sulfur Dioxide (B-050-100) It is the recommendation of the Public Works Director that Bid Schedule No. 3090 (Job Nos. 5330- 33 and 5340-33), liquid sulfur dioxide, be awarded to All Pure Chemical Co. in the amount of$487 per ton for one to four one-ton containers, and $487 per ton for five or more containers. Funds for these purchases are included in the proposed 1997-98 fiscal year budget. Award of Bid - Bid Schedule No. 3093, Blended Sodium Phosphate (B-050-100) It is the recommendation of the Public Works Director that Bid Schedule No. 3093 (Job No. 5203- 15), blended sodium phosphate, be awarded to Kjell Corporation of Beloit, Wisconsin, in the amount of$5.395 per gallon. Funds for these purchases are included in the proposed 1997-98 fiscal year budget. Award of Bid - Bid Schedule No. 3095, Rock & Mineral Products (B-050-100) It is the recommendation of the Public Works Director that Bid Schedule No. 3095, rock and mineral products, be awarded as follows: (1) J. F. Shea for Items 1, 2, 15, and 19; (2)North State Asphalt for Items 3, 4, 5, 6, 7, 12, 13, 14, 21, 22, 23, 24; (3)Mt. Gate Limestone for Item 8; (4) Westside Aggregate for Items 9, 10, 11, and 18; (5)Dan Palmer Trucking for Items 16 and 20; and (6) Crystal Creek Aggregate for Item 17 in the amounts set forth in the bid tabulations contained in the Report to City Council dated May 12, 1997, incorporated herein by reference. 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, and P. Anderson Noes: Council Members -None Absent: Council Members -None Resolution Nos. 97-085, 97-086, 97-087, 97-088, and 97-089, and Ordinance No. 2179 are on file in the office of the City Clerk. PUBLIC HEARING- Landscape Maintenance District"A" (A-170-075-050) The hour of 7:00 p.m. having arrived, Mayor P. Anderson opened the public hearing regarding Landscape Maintenance District"A". 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 Development Services Department's recommendation dated May 8, 1997 Letters of protest were received and included in the Report to City Council dated May 8, 1997, incorporated herein by reference, from the following individuals: Judith Duerks, Linda Katzer, Clifford Hepburn, Cheryl Long, and James Wirth. 05/20/97 r- 118 Development Services Director Swanson recalled that the City Council conducted a public meeting on May 6, 1997, and received public testimony. He stated that staff responded to letters of protest which were received and provided the City Council with copies of those responses. Senior Planner King indicated that Landscape Maintenance District "A" is comprised of 14 subdivisions or 1,667 lots. He explained that staff is proposing the following: (1) A per-lot fee for 1997-98 of$30.00, an increase of$4.63; (2) The proposed 1997-98 assessment should be increased by no more than four percent per year at a compounded rate; (3) The reserve fund should not exceed 100 percent of the total district budget; (4)The City's administrative cost to manage the district shall not exceed four percent per year; and (5) Annex Lancer Hills Subdivision, Unit 4, into Area 10. He related that if the City Council concurs, it is recommended that the City Council adopt the necessary resolution. Mayor P. Anderson determined that there was no one present wishing to speak on this matter and closed the public hearing. MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge, that Resolution No. 97-090 be adopted, a resolution of the City Council of the City of Redding (1) Ordering the annexation of Unit 4 of the Lancer Hills Subdivision into Area 10 of the District; (2) Confirming the Assessment Diagram; (3) Ordering the levy of the annual assessments for fiscal year 1997-98, $30.00 per lot, pursuant to the Landscaping and Lighting Act of 1972 (commencing with Section 2250 of the Streets and Highways Code); (4) Adopting a schedule of annual increases for future assessments, in an amount not to exceed four percent per year at a compounded rate; and (5) The City's administrative cost to manage the district shall not exceed four percent per year. 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. 97-090 is on file in the office of the City Clerk. PUBLIC HEARING -Landscape Maintenance District "B" (A-170-075-051) The hour of 7:00 p.m. having arrived, Mayor P. Anderson opened the public hearing regarding Landscape Maintenance District "B". 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 Development Services Department's recommendation dated May 9, 1997 A letter of protest was received from Fred Hawley. Development Services Director Swanson recalled that the City Council conducted a public meeting on May 6, 1997, and received public testimony. He stated that staff responded to the letter of protest which was received and provided the City Council with a copy of that response. Senior Planner King indicated that Landscape Maintenance District "B" is comprised of 11 subdivisions or 577 lots. He explained that staff is proposing the following: (1) A per-lot fee for 1997-98 of$71.00, an increase of$1.72; (2) The proposed 1997-98 assessment should be increased by no more than four percent per year at a compounded rate; (3) The reserve fund should not exceed 100 percent of the total district budget; and (4) The City's administrative cost to manage the district shall not exceed four percent per year. He related that if the City Council concurs, it is recommended that the City Council adopt the implementing resolution Roy Easley, 691 Olympic Street, stated that the landscaping within Monterey Springs, Unit 1, is considered low maintenance, i.e., shrubs and trees. He believed the formation of the landscape maintenance districts was inequitable. He indicated that areas requiring a large amount of maintenance, i.e., grass and water, were included in the same district as areas with low maintenance landscaping, which in his opinion, created an inequity in square footage charges. He further contended that the district is not maintained as required by the contract and objected to the 35 percent contingency being added to the assessment for reserves. Mr. Easley urged the City Council not to 05/20/97 119 increase the assessment without the approval of the property owners, as required by Proposition 218, and that the three districts be reevaluated to ensure that similar type landscaping areas are grouped together. Mayor P. Anderson determined that there was no one else present wishing to speak on the matter and closed the public hearing. In response to Council Member McGeorge, Mr. King explained that during the consolidation of the districts, staff looked at all the costs associated with an area, i.e., water, vandalism, weather damage costs, etc. He stated that many districts went from an annual assessment of$210 per lot prior to consolidation to $70 after consolidation. He noted that property owners within the St. Thomas Heights Subdivision are amenable to removing half of the grass area utilizing the 35 percent contingency fund. Mayor P. Anderson questioned whether any unspent contingency funds would be utilized to lower the following year's assessment. Mr. King indicated that historically the reserves were used to lower the subsequent year's assessment, however, staff is recommending stopping this practice due to the assessment's large fluctuation. He stated that staff is proposing to build the reserves up which can be utilized for either capital improvements or reimbursement to the property owners. Council Member R. Anderson concurred that an inequity existed within District "B" and suggested forming a fourth district comprised of those areas which do not want to reduce high maintenance items, i.e., grass, etc. Mr. King stated that staff could research the matter further prior to next year's hearing. Council Member McGeorge questioned what happens when the contractor's work is deemed unsatisfactory. Mr. King responded that 85 percent of those property owners who responded to a survey were satisfied with the care of the area's landscaping. MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge, that Resolution No. 97-091 be adopted, a resolution of the City Council of the City of Redding (1) Confirming the Assessment Diagram; (2) Ordering the levy of the annual assessments for fiscal year 1997-98, $71.00 per lot, pursuant to the Landscaping and Lighting Act of 1972 (commencing with Section 2250 of the Streets and Highways Code); (3) Adopting a schedule of annual increases for future assessments, in an amount not to exceed four percent per year at a compounded rate; and (4) The City's administrative cost to manage the district shall not exceed four percent per year. 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. 97-091 is on file in the office of the City Clerk. PUBLIC HEARING - Landscape Maintenance District "C" (A-170-075-052) The hour of 7:00 p.m. having arrived, Mayor P. Anderson opened the public hearing regarding Landscape Maintenance District "C". 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 Development Services Department's recommendation dated May 8, 1997 No protests were received. Development Services Director Swanson recalled that the City Council conducted a public meeting on May 6, 1997, and received public testimony. 05/20/97 r- 120 Senior Planner King indicated that Landscape Maintenance District "C" is comprised of 7 subdivisions or 337 lots. He explained that staff is proposing the following: (1) A per-lot fee for 1997-98 of$8.00, an increase of$0.54; (2) The proposed 1997-98 assessment should be increased by not more than four percent per year at a compounded rate;(3)The reserve fund should not exceed 100 percent of the total district budget; (4)The City's administrative cost to manage the district shall not exceed four percent per year; and (5) Annex Unit 1 and remaining Parcel R-1 of the Fairway Estates Subdivision into the District as Area 7. He related that if the City Council concurs, it is recommended that the City Council adopt the necessary resolution. Mayor P. Anderson determined that there was no one present wishing to speak on the matter and closed the public hearing. MOTION: Made,by Council Member R. Anderson, seconded by Council Member McGeorge, that Resolution No. 97-092 be adopted, a resolution of the City Council of the City of Redding (1) Ordering the annexation of Unit 1 and remaining Parcel R-1 of the Fairway Estates Subdivision into the District as Area 7; (2) Confirming the Assessment Diagram; (3) Ordering the levy of the annual assessments for fiscal year 1997-98, $8.00 per lot, pursuant to the Landscaping and Lighting Act of 1972(commencing with Section 2250 of the Streets and Highways Code); (4) Adopting a schedule of annual increases for future assessments, in an amount not to exceed four percent per year at a compounded rate; and(5)The City's administrative cost to manage the district shall not exceed four percent per year. 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. 97-092 is on file in the office of the City Clerk. Council Member Murray recommended that the City review its subdivision approval standards and conditions applied by the Board of Administrative Review and the Planning Commission and determine if there are more appropriate alternatives. He further suggested that the City evaluate how much right-of-way it requires when acquiring property. Council Member Kehoe commended staff for their work in forming the three existing assessment districts. He concurred, however, that the timing may be right to fine tune them. He suggested that staff prepare a report for the City Council's consideration in the early part of 1998 which outlines possible changes to the way the landscaping and maintenance districts are handled. Council Member R. Anderson concurred and noted that the whole process regarding landscaping and maintenance districts may need to be rethought. City Manager Warren stated that staff would prepare a report for the City Council's consideration in the early part of 1998. RESOLUTION- Appropriating Funds re Driving Under the Influence Blood Alcohol Testing Costs * (B-130-070 & P-150-150) City Manager Warren related that the Report to City Council dated May 6, 1997, incorporated herein by reference, is requesting a $26,000 appropriation from the General Fund reserve to the Police Department. He stated that this transfer is necessary to pay for the costs being billed to the Police Department by the Shasta County District Attorney's Office for blood alcohol testing. He explained that in April 1996, the Department was informed by the District Attorney's Office of an amendment to Penal Code Section 1463.14(a)which has been interpreted to allow the District Attorney to charge the City for the cost of blood alcohol testing when the fines and forfeiture which had previously been used to pay for that testing were no longer sufficient to cover the cost. He estimated that fiscal year end costs for the blood alcohol costs will be approximately $26,000. He related that the Department had not budgeted for these expenses, therefore, a budget amendment is necessary. Police Chief Blankenship expressed his concern over this request, as the Police Department has not had to request any additional appropriation of funds in almost nine years. He stated that the current District Attorney is sympathetic to the problem and is working with the City; however, the County's legal counsel has notified the City that the County expects the bill to be paid. He explained that staff has contacted Assemblyman Woods and Senator Johannessen to determine whether anything can be 05/20/97 121 done legislatively to have the intent of the Penal Code Section changed. He stressed that not only is the City paying for all of its tests, but it is also required to pay for the tests administered by the California Highway Patrol within Redding's city limits. In response to Mayor P. Anderson, Chief Blankenship explained that the court can mandate that the driver pay the fees, however, there are individuals who refuse or are unable to pay. He stated that the City is being requested to pay the difference between the actual charges and the fees collected. Mayor P. Anderson questioned whether the City could request an accounting of the charges from the County. City Attorney Wingate replied that the City does retain private companies periodically to make such an accounting. He stated that the City is being charged based on the percentage of arrests and the percentage of the shortfall is then applied between the cities and county. He indicated that the City could attempt to determine whether there are records which indicate whether those drivers arrested in the City of Redding have a better track record of paying than those arrested outside the City limits. Chief Blankenship related that the City receives a record of those individuals arrested within the City limits, however, it does not indicate whether fees have been paid. MOTION: Made by Council Member Murray, seconded by Council Member Kehoe, that Resolution No. 97-093 be adopted, a resolution of the City Council of the City of Redding approving and adopting the 37th amendment to City Budget Resolution No. 96-130 to appropriate $26,000 for blood alcohol testing done by the County of Shasta. 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. 97-093 is on file in the office of the City Clerk. OFFER TO PURCHASE CITY-OWNED PROPERTY ON EASTSIDE ROAD (C-070-200) Council Member Murray abstained from discussion and voting on this matter. Assistant City Manager Perry's Report to City Council dated May 9, 1997, incorporated herein by reference, recommended that the City Council declare the ten acres of City-owned property located on Eastside Road north of Haven Humane Society as surplus, authorize the processing of a tentative parcel map, approve the preparation of an option agreement as outlined in the report, and waive the competitive bid process. MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, to declare the ten acres of City-owned property located on Eastside Road north of Haven Humane Society as surplus; direct staff to submit a sale value of$8,000 per acre or the fair market value, whichever is higher to Wesflex; authorize the processing of a tentative parcel map; direct staff to submit a final sales agreement to the City Council for consideration, along with any condition of development, which requires a non-refundable deposit, the term of the option is to be 60 days, and per City Council Policy, the commission is to be reduced to five percent; and waive the competitive bid process. Voting was as follows: Ayes: Council Members - R. Anderson, Kehoe, McGeorge, and P. Anderson Noes: Council Members -None Absent: Council Members -None Abstain: Council Members - Murray REQUEST TO ACQUIRE CITY-OWNED LAND -by Shasta County (Riverland Drive) (C-070-200 & C-070-010) Assistant City Manager Perry highlighted the Report to City Council dated May 9, 1997, incorporated herein by reference, regarding a request by Shasta County to acquire a portion of the City-owned property on Riverland Drive (former site for the softball complex) for use as a Shasta County Sheriff's Substation and possibly a State or Federal laboratory. He related that the County 05/20/97 122 has offered to trade acre-for-acre or value-to-value from two parcels the County owns. One parcel is the former 40-acre dump and transfer station site'off of Old Oregon Trail. The second parcel is 159 acres located northeast of Redding Municipal Airport on the eastside of Stillwater Creek. MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, to decline to sell or exchange the City-owned property on Riverland Drive to Shasta County and direct staff to thank Shasta County for contacting the City regarding this possible land exchange. Voting was as follows: Ayes: Council Members - R. Anderson, Kehoe, McGeorge, and P. Anderson Noes: Council Members- Murray Absent: Council Members-None MALL SERVICE CENTER (C-050-025) Assistant City Manager Perry provided an overview of the Report to City Council dated May 9, 1997, incorporated herein by reference, regarding the possible establishment of a Mall Service Center. He explained that staff is bringing this matter before the City Council to determine whether it should be included in the budget process and if existing personnel could be transferred to the center. Mr. Perry indicated that from a customer perspective, it would enable people to combine trips to one convenient location, thereby reducing traffic at the new Civic Center and other offices. He related that from a mall standpoint, it would bring people to the mall who might engage in shopping. A transit stop near the mall would allow bus riders to access City services at a more convenient location once the new Civic Center is built. Council Member R. Anderson opposed the development of a Mall Service Center because he was not interested in adding additional personnel and believed the Civic Center should be a place where customers go to do business with the City. Council Member Murray believed additional information was needed before a decision could be made. He indicated that the concept should be expanded to include locations other than the Mt. 111 Shasta Mall. He questioned whether the City would receive any air quality credits for trip reductions. Council Member McGeorge believed that if the concept were pursued further, staff should approach the Mt. Shasta Mall about a rent reduction or some type of cost sharing due to the increased traffic the Mall Service Center would generate. MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, to direct staff not to pursue the concept of a Mall Service Center at this time. The Vote: Unanimous Ayes ELECTRIC UTILITY CUSTOMER RELATIONS. EDUCATION. AND INFORMATION - COMMUNICATIONS PLAN (E-090) Assistant City Manager Perry's Report to City Council dated May 9, 1997, incorporated herein by reference, regarding a Customer Relations, Education, and Information - Communications Plan for the Electric Utility explained that staff believes a systematic and comprehensive communications program highlighting the utility's strengths and communicating how weaknesses will be corrected is vital. Mr. Perry stated that a communications plan would inform customers on issues affecting the Utility; provide information and advice on the efficient use of energy; and promote the positive aspects of public power, local utility ownership, and community decision-making. In addition, it is proposed that the Electric Department would continue to participate in activities which bring the Electric Utility and the community together. It is the recommendation of staff that the City Council direct staff to include the Customer Relations, Education, and Information - Communications Plan in the draft 1997-98 fiscal year budget for consideration. Council Member Kehoe related that conversations with residents indicate they are interested in receiving effective and efficient electrical service and are concerned about the cost of power delivery. Therefore, he did not believe an expenditure of$85,000 was consistent with what City residents wanted. 05/20/97 123 Council Member Murray stated that it is important for the residents to be fully informed in a competitive environment, otherwise, they may select other alternatives. He supported the proposed plan as an aggressive marketing program that is needed both internally and externally. Mr. Perry explained that the Electric Utility was downgraded on both internal and external communications. He believed the overall cost was fairly nominal given the size of the Electric Utility. He related that no action is required by the City Council this evening, other than to include it in the 1997-98 budget for consideration. Council Member McGeorge indicated that he has been in business for over 30 years, and an average company will spend between three and seven percent on advertising. He noted the importance of keeping citizens informed as much as feasibly possible. Council Member Kehoe opined that expending funds to tell City residents what a great job the City is doing does not square with fiscal integrity. MOTION: Made by Council Member Murray, seconded by Council Member McGeorge, to include the development of a Customer Relations,Education, and Information - Communications Plan in the proposed 1997-98 fiscal year budget for the City Council's consideration. Voting was as follows: Ayes: Council Members - McGeorge, Murray, and P. Anderson Noes: Council Members - R. Anderson and Kehoe Absent: Council Members -None ELECTRIC UTILITY BUDGET RESERVE (B-130-070 & E-090) Assistant City Manager Perry highlighted the Report to City Council dated May 13, 1997, incorporated herein by reference, providing answers to questions raised regarding the reduction of the Electric Utility's reserve from $23 million to $5 million. He stressed that the financial advisor retained by the City would provide a final analysis. He provided the City Council with reserve margin data from other California municipal utilities. Council Member Murray stated that the previous action taken by the City Council reduced the Electric Utility's reserve from$23 million to$5 million and the Electric Utility identified which funds would be used for debt reduction. He questioned what proceeds would be left to begin rebuilding the reserve. It was the consensus of the City Council to direct staff to prepare a report which outlines how staff anticipates the Electric Utility's reserve to increase from the $5 million level. ELECTRIC UTILITY LIFELINE RATES CLASSIFICATIONS (E-090-100) Assistant City Manager Perry highlighted the Report to City Council dated May 12, 1997, incorporated herein by reference, regarding clarification of the Lifeline Rate Policy. He stated that the City Attorney has subsequently determined that it is possible to include a first-come, first-serve provision in the policy and suggested that clarification be sought from the City Council on whether such a provision should be included in the policy. Mr. Perry explained that the purpose of the first-come, first-served provision was to clearly indicate that when a certain number of sign ups had occurred and the budget was exhausted, further sign ups would be precluded. He related that the City Council has reduced the potential number of households eligible for a lifeline rate; however, it is a new program and the exact number of participants is not known. It is the recommendation of staff that the first-come, first-served provision be reinstated in the policy. Council Member R. Anderson stated that he was not interested in implementing a first-come, first- served provision in the policy. He believed the program should be open to anyone eligible to receive the benefits. He indicated that if there were not sufficient funds to handle all of the participants, then it may be necessary to reduce the discount being provided. 05/20/97 124 Council Members Kehoe, McGeorge, and Murray concurred. No action was taken on this item. ENERGY CONSERVATION INCENTIVES (E-120-030) Assistant City Manager Perry provided an overview of the Report to City Council dated May 13, 1997, incorporated herein by reference, concerning energy conservation incentives. He related that the City has established various time of use and interruptible power rate schedules. He stated that the goal has been to encourage large customers to reduce energy consumption during peak hours, thereby reducing any extra energy the City would need to buy during peak periods. Mr. Perry explained that such programs represent reduced revenue and subsidy of the time-of-use customer by other customers. In 1996-97, it is anticipated that the Electric Utility's income will be reduced by approximately $300,000 as a result of the 31 contracts currently existing under these programs. He noted that if the programs were canceled, it would represent a rate reduction of one percent to non-residential customers or one-half percent to all customers. It is the recommendation of staff that the City Council place a temporary moratorium on the programs and not enter into any new contracts after June 1, 1997. This action would avoid the program growing at the expense of other customers who are now being asked to pay more. He stated that the City would continue with its present contracts, but would not add more until the surcharge has been eliminated. He indicated that once the public goods charge is funded, the focus would be on helping companies manage their energy usage and what they can do to conserve energy. He related that in the future,the City may look at selling energy by the hour, different rates for different times of use, market rate energy packages, etc. Council Member Murray favored deferring action on this matter until the cost of service study was completed. He believed the cost of service study would provide the necessary information on what it costs to provide electrical service and what rates should be charged to each type of user. He did not support taking a piecemeal approach to establishing rates. Mr. Perry anticipated the cost of service study would be completed in October 1997. Council Member McGeorge suggested placing a moratorium on the energy conservation incentives, but supported continuing to honor those 31 contracts already in existence. MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, to direct staff to place a temporary moratorium on the energy conservation incentives programs and not enter into any new contracts after June 1, 1997. Voting was as follows: Ayes: Council Members- R. Anderson, Kehoe, McGeorge, and P. Anderson Noes: Council Members -Murray Absent: Council Members-None OPPOSITION TO H.R. 1577 - re Sale of Federal Power Marketing Agencies (L-040-070 & E-120-070) Assistant City Manager Perry's Report to City Council dated May 13, 1997, incorporated herein by reference, related that H.R. 1577 would, among other things, sell three Federal power marketing agencies(PMA). This legislation would include the sale of the Western Area Power Administration (WAPA), from which Redding receives 60 percent of its energy. It is the recommendation of staff that the City Council direct staff to send correspondence in opposition to H.R. 1577 with copies to the appropriate Congressmen and Senators and seek, as part of the legislative process, the sale of Western's facilities to existing public power customers and county of origin rights. Council Member Murray noted that there are numerous bills dealing with the sale of WAPA and suggested that the City Council authorize staff to address any bills dealing with its sale without further City Council authorization. 05/20/97 125 MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson, authorized correspondence to be sent in opposition to H.R. 1577 with copies to appropriate Congressmen and Senators, authorized staff to pursue county of origin rights or ability for present customers to acquire Western Area Power Administration (WAPA) facilities, and directed that staff send appropriate correspondence on any legislation dealing with the sale of WAPA without further City Council authorization. The Vote: Unanimous Ayes NEXT REGULAR GENERAL MUNICIPAL ELECTION DATE (E-070-050) City Clerk Strohmayer provided an overview of the Report to City Council dated May 8, 1997, incorporated herein by reference, concerning the date of the next Regular General Municipal Election. She explained that the City's ordinance provides that if the State did not authorize a March statewide primary election, the City's General Municipal Election would be held on the second Tuesday in April of even-numbered years. She confirmed that the next statewide primary election would be moved back to June 1998. Ms. Strohmayer explained that the Shasta County Elections Department has advised the City that Proposition 198 would impact its ability to facilitate consolidations with some elections. Because the County uses a votomatic ballot style, which offers a limited number of voting positions, it runs the risk of exceeding the number of voting positions. Consequently, the County has indicated that it would not accommodate cities for a June 1998 consolidation. Ms. Strohmayer outlined the following alternatives for the City Council's consideration: (1) Consolidate with the Schools/Special Districts November 4, 1997, election - This would shorten elective terms by five months; (2) Consolidate with the November 3, 1998, General Election - This would lengthen elective terms by seven months; and (3) Hold the next Regular General Municipal Election on April 14, 1998 - This would leave existing elective terms intact. Ms. Strohmayer noted that if the next Regular General Municipal Election were held on April 14, 1998, it would require two temporary employees for a six-week period at a cost of approximately $4,000. She explained that some of this cost would be offset by State-mandated reimbursement associated with absentee voters. Council Member Murray opined that April elections give the impression the City is being wasteful. He recommended that the election be shifted to November of odd number years to coincide with County elections, with the understanding that those individuals taking office in 2000 would have terms expiring in 2003. He stated that this action would send a message to the community that the City is being fiscally conservative and would not affect any existing terms of office. Mayor P. Anderson related that while serving on the County Board of Education, the Board found that consolidating elections with the County did not save any significant amount of money. Council Member R. Anderson believed the cost savings associated with consolidation to be minimal, if any. Given the importance of those elected to serve the City, he believed that fewer issues on the ballot forced people to look closer at the candidates. MOTION: Made by Council Member Kehoe, seconded by Council Member R. Anderson, to hold the next Regular General Municipal Election on April 14, 1998. The Vote: Unanimous Ayes ADJOURNMENT There being no further business, at the hour of 8:35 p.m., Mayor P. Anderson declared the meeting adjourned. APPROVED: Mayor ATTEST: / City Clerk 05/20/97