HomeMy WebLinkAboutMinutes - City Council - 1997-11-18 264
Redding City Council
Regular Meeting
City Council Chambers
1313 California Street
Redding, California
November 18, 1997 7:00 p.m.
The Pledge of Allegiance to the flag was led by Director of Development Services Swanson.
The Invocation was offered by Pastor Lyndell Cheeves of the Church of Christ.
•
The meeting was called to order by Mayor Murray with the following City Council Members present:
Anderson, Kehoe, McGeorge and Murray.
Also present were City Manager Warren, Assistant City Manager Perry, City Attorney Wingate,
Electric Utility Director Feider, Public Works Director Russell, Police Chief Blankenship, Director
of Development Services Swanson,Director of Administrative Service Kersten, Deputy City Manager
Starman, Fire Chief Wagner, Electric Group Manager Ryan, Finance Officer Strong, Planning
Manager Keaney, Human Resources Manager Bachman, Superintendent of Wastewater Craig, Senior
Planner King, Electric Program Supervisor Graves, Permit Center Supervisor Gungl, Personnel
Analyst Neimer, City Clerk Strohmayer and Assistant City Clerk Moscatello.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 9, for the period November 4, 1997, through
November 14, 1997, check numbers 253331 through 253760 inclusive, in the amount of
$3,703,143.42, and Payroll Register No. 9, check numbers 42684 through 443528 inclusive, and
electronic deposit transaction numbers 42684 through 43113, totaling $1,322,703.97, for the period
October 19, 1997, through November 1, 1997, be approved.
TOTAL: $5,025,847.39
Ordinance No, 2195 - Rezoning Application RZ-9-97, by Redding Properties II, (4250 and 4600
Goodwater Avenue) by Redding Properties II
(L-010-230)
It is recommended that Ordinance No. 2195 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 from "U" Unclassified District, and "U-FP" Unclassified
District with Floodplain Combining District, to "OS" Open Space District, and "R-1-BFM" Single
Family Residential District (RZ-9-97).
Award of Bid - Bid Schedule No. 3142, One Half-Ton Truck and Two Compact Trucks
(B-050-100)
It is the recommendation of the Administrative Services Director that Bid Schedule No. 3142, for
One Half-Ton Truck and Two Compact Trucks be awarded to the low bidder, Corning Ford
Mercury, Inc. for a total amount not to exceed $36,990.
Resolution - Ordering Abatement Proceedings at 703 Leland Court, owned by Greg Berglund
(A-030-070)
It is the recommendation of the Development Services Director that the City Council adopt
Resolution No. 97-195, a resolution of the City Council of the City of Redding approving the report
and findings of the Board of Appeals and ordering abatement of the unsafe and unsightly buildings
on property at 703 Leland Court, owned by Greg Berglund.
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Resolution-Ordering Abatement Proceedings at 2697 Bunker Street, owned by Kenneth and Harriett
Scott
(A-030-070)
It is the recommendation of the Development Services Director that the City Council adopt
Resolution No. 97-196, a resolution of the City Council of the City of Redding approving the findings
of the Board of Appeals and ordering the abatement of the unsafe and unsightly structures on
property at 2697 Bunker Street, owned by Kenneth and Harriet Scott.
Resolution - Releasing Abatement Proceedings on property at 1299 Old Alturas Road, owned by
Joseph and Grace Brugaletta
(A-030-070)
It is the recommendation of the Development Services Director that the City Council adopt
Resolution No. 97-197, 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 1299 Old Alturas Road, owned by Joseph and Grace Brugaletta.
Resolution- Appropriating Funds for New Cab and Chassis for Crash 72 Truck at Redding Municipal
Airport
(B-130-070, A-090-100 & G-100-070-095)
It is the recommendation of the Development Services Director that the City Council adopt
Resolution No. 97-198, a resolution of the City of Redding approving and adopting the 10th
amendment to City Budget Resolution No. 97-111 appropriating $50,000 for a new cab and chassis
for Crash 72 truck at Redding Municipal Airport. Funds are available through an existing Federal
Aviation Administration grant (AIP No. 14).
Resolution - Appropriating Funds for Aircraft Rescue and Firefighting Vehicle Purchase for Redding
Municipal Airport
(B-130-070, A-090-100 & G-100-070-095)
It is the recommendation of the Development Services Director that the City Council adopt
Resolution No. 97-199, a resolution of the City of Redding approving and adopting the 11th
amendment to City Budget Resolution No. 97-111 appropriating$330,000 for a new Aircraft Rescue
and Firefighting(ARFF)vehicle at Redding Municipal Airport. Funding for 90% of this purchase will
be through a yet to be submitted Federal Aviation Administration grant, and 10% of the cost will be
through the Passenger Facility Charge program. This action will eliminate the action taken by o
Council at its meeting of November 4, 1997, to appropriate $20,000 to repair the Oshkosh 1500
ARFF vehicle referred to as Crash 7.
Development Service Department's Monthly Activity Report - October 1997
(A-050-122)
It is the recommendation of the Development Services Director that the Development Services
Department's Monthly Activity Report through October 1997 for the following work areas be
accepted: (1)Zoning, Subdivision, and General Plan Amendments; (2) Building and Population; (3)
Housing Assistance and Rehabilitation; and (4) General Plan Update.
Resolution - Authorizing One-Year Extension for Tentative Subdivision Map, S-4-93, Spring Hill
Park, by Mike Wells
(S-101-003)
It is the recommendation of the Development Services Director that Council adopt Resolution No.
97-200, a resolution of the City Council of the City of Redding authorizing a three-year approval
period for Tentative Subdivision Map, S-4-93, Spring Hill Park, in accordance with Redding
Municipal Code amendment effective August 2, 1994, which provides a three year approval period
for all tentative subdivision maps. Approval period will expire August 1998.
Acceptance of Final Map and Improvements - Forest Hills Ranchettes Subdivision, S-19-80, by
Pullen/Gunner (Goodwater Avenue east of Shasta View Drive)
(S-100-200)
It is the recommendation of the Public Works Director that the Final Map for Forest Hills Ranchettes
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be accepted as satisfactorily completed, and that the City Clerk file the map with the Shasta County
Recorder. It is further recommended that the improvements in the subdivision be accepted for
maintenance.
Resolution - Accepting Streets and Improvements for Industrial Street Realignment (Use Permit UP-
33-95, Canned Foods)
(L-010-390)
It is the recommendation of the Public Works Director that the City Council accept the improvements
of the Industrial Street Realignment (UP-33-95) as satisfactorily completed, and adopt Resolution
111
No. 97-201, a resolution of the City Council of the City of Redding accepting the improvements for
maintenance and operation for the Industrial Street Realignment at the intersection of Churn Creek
Road, Del Monte Street and Industrial Street.
Acceptance of Final Map and Approval of Subdivision Agreement - White Hawk Estates, Unit 2
(a.k.a Country Heights Subdivision, Unit 16, Phase 3), S-6-95 (Teton Drive west of Buenaventura
Boulevard)
(S-100-108)
It is the recommendation of the Public Works Director that the Final Map for White Hawk Estates,
Unit 2, (a.k.a. Country Heights Subdivision, Unit 16, Phase 3) be approved, the Mayor be authorized
to sign the subdivision agreement, and the City Clerk file the map with the Shasta County Recorder.
State Water Resources Control Board Proposed Policy - Approve Letter of Comment
(S-050-430)
It is the recommendation of the Public Works Director that the City Council support submittal of a
comment letter to the State Water Resources Control Board regarding its proposed policy for
implementation of toxic standards for inland surface waters, enclosed bays, and estuaries of
California. The comment letter will explain the potentially unreasonable effects the policy will have
on the City of Redding, and propose several changes to the policy which will be more manageable
and allow greater flexibility for quantifying river toxicity.
MOTION: Made by Council Member McGeorge, seconded by Council Member R. Anderson, 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 and Murray
Noes: Council Members - None
Absent: Council Members - None
Resolution Nos. 97-195, 97-196, 97-197, 97-198, 97-199, 97-200 and 97-201 and Ordinance No.
2195 are on file in the office of the City Clerk.
PUBLIC HEARING - Development Fee Increases
(F-205-600)
The hour of 7:00 p.m. having arrived, Mayor Murray opened the public hearing regarding
Development Fee increases.
The following documents are on file in the office of the City Clerk:
Affidavit of Publication - Notice of Public Hearing
Staff recommendation of November 12, 1997
Director of Development Services Swanson outlined the various proposed charges for the processing
of development applications and fees charged to developers as their share of the cost of providing and
constructing capital facilities to serve new development. Mr. Swanson noted that the proposed fees
are a joint recommendation of City staff and the Development Fees Review Committee (DFRC),
which is comprised of the Greater Redding Chamber of Commerce, the Shasta County Board of
Realtors, the Shasta Builders' Exchange and the Shasta Business Council.
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Mr. Swanson stated that the proposed increases would be phased in over the next year, with an initial
increase of 8.5% for all fees, with two exceptions. The two exceptions are the establishment of a
new $70 Fire Department fee for fire alarm and sprinkler plan check and a $100 additional charge per
unit added to the Park Development Fee. He said there would be no increase in the Park In-Lieu Fee.
A second 8.5% increase in all development impact and processing fees would be effective on January
1, 1999. Thereafter, all processing fees would increase by an amount equal to the latest annual
increase in the Consumer Price Index for All Urban Consumers, mid-size western cities, on July 1,
1999, and on every July I thereatfer. All impact fees would increase on July 1, 1999, and every July
1 thereafter, by an amount equal to the latest published annual increase in the Engineering News
Record Cost of Construction Index. Mr. Swanson conveyed that State law imposes a 60-day waiting
period between adoption of development fee increases and their effective date; therefore, staff would
schedule implementation of all fee increases for February 16, 1998.
Kent Dagg, Executive Director of the Shasta Builders Exchange, stated that the Committee was
unanimous in its recommendation to approve the adoption of Alternative I as outlined by Mr.
Swanson,
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, that
Resolution No. 97-202 be adopted, a resolution of the City Council oldie City of Redding amending
its schedule of fees and service charges pertaining to development processing fees and traffic impact
fees. in addition, staff is directed to prepare an ordinance for introduction at the next regular meeting
to approve proposed increases in impact fees for water, wastewater, and park fees, and add ordinance
authority to charge fees for processing Fire Department sprinkler and lire alarm plan checks.
Voting was as follows:
Ayes: Council Members - Anderson, Kehoe, McGeorge and Murray
Noes: Council Members - None
Absent: Council Members - None
Resolution No. 97-202 is on tile in the office of the City Clerk.
SHASTA MOSQUITO ABATEMENT DISTRICT APPOINTMENT
(B-080-480)
Mayor Murray recommended the reappointment of Winifred Woods to the Shasta Mosquito
Abatement District.
MOTION: Made by Council Member McGeorge, seconded by Council Member Anderson, to
reappoint Winifred Woods to the Shasta Mosquito Abatement District to serve a two year term
expiring December 1999. The Vote: Unanimous Ayes
ORDINANCE NO. 2196 - Transient Occupancy Tax
(T-010-600)
Council Member Kehoe abstained from discussion on this matter.
Cindy Powers, representing the Redding Hotel and Motel Association, asked City Council to
• continue consideration of the ordinance relative to transient occupancy tax in order to give the
• Association time to prepare a report on the impact to the hotel and motel business of charging Federal
employees transient occupancy tax.
It was the consensus of Council to delay consideration of the ordinance until the December 2, 1997,
Council meeting and provide the Hotel and Motel Association an opportunity to submit a report to
Council on this matter.
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CITY COUNCIL LIAISON REPRESENTATIVES LIST
(A-050-060)
MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, to designate
Council Member R. Anderson liaison to the Administrative Services Department and the Audit
Committee; designate Council Member Kehoe liaison to the General Services Department and the
School Facilities Task Force; designate Council Member McGeorge liaison to the Shasta County
Senior Nutrition and Mayor Murray liaison to the Community Development Advisory Committee.
The Vote: Unanimous Ayes
•
GATEWAY MONUMENT SIGNS and 1992-97 URBAN DESIGN AWARDS
(A-050-250/B-080-600-950 & G-100)
Senior Planner King conveyed that the gateway monument sign project has received considerable
community support and over $20,000 has been raised for the construction of two signs. Mr. King
stated that staff is proposing that the City apply for a grant from The McConnell Foundation for
$10,000 with the understanding that this would be matched by a City contribution of$10,000.
City Manager Warren commended Senior Planner King for his effort in obtaining community support
for the gateway monument project.
MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, to apply for
a McConnell Foundation grant in the amount of$10,000 for the gateway monument project and offer
a matching amount of$10,000 to complete the fundraising and begin project construction in January
1998. The Vote: Unanimous Ayes
Mr. King also noted that the Urban Design Awards competition has not been held since 1991. In
light of the fact that there have been many community fund raising events this year, he expressed
concern about the ability of the development community to raise funds to pay for the awards banquet
or the City's ability to sponsor the entire program. Mr. King recommended that the Urban Design
Awards program be held over to March 1999 in order to give the City and the development
community time to mount a fund-raising program.
City Manager Warren conveyed that it would be nice to recognize the development community and
the Builders Exchange has expressed an interest in moving ahead with the awards ceremony in March
1998. He recommended that the awards budget be pared down to $10,000 and the City contribute
$5,000 and the Builders Exchange contribute matching funds in the amount of$5,000.
Kent Dagg, Shasta Builders Exchange, expressed enthusiasm about holding the awards ceremony on
March 20, 1998, and conveyed that the development community will find the means to raise $5,000
for the awards ceremony.
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, to fund
the 1992-97 Urban Design Awards competition in an amount not to exceed $5,000. The Vote:
Unanimous Ayes
ORDINANCE -Establishing Volunteer Campaign Expenditure Limits for Candidates •
(F-010) •
Deputy City Manager Starman recalled that at its regular meeting of November 4, 1997, City Council
directed staff to prepare an ordinance establishing a voluntary campaign expenditure limit of$1 per
City resident, or $77,353. Mr. Starman noted that if Council offers the ordinance for first reading
tonight, it will become effective on January 1, 1998, ten days after individuals may file as candidates
for the April 14, 1998, general municipal election. Mr. Starman added that for candidates who agree
to the voluntary expenditure ceiling, the contributions would be capped at $250 per individual and
$500 from small contributor committees.
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Council Member McGeorge offered Ordinance No. 2197 for first reading, an ordinance of the City
Council of the City of Redding adding Section 2.17.100, voluntary expenditure ceilings, to Chapter
2.17, General Municipal Elections.
MOTION: Made by Council Member McGeorge, seconded by Council Member Anderson, that the
full reading of Ordinance No. 2197 be waived and the City Attorney be instructed to read the full
title. The Vote: Unanimous Ayes
ORDINANCE - Swimming Pool Barrier Requirements
(L-010-500-050 & C-110-200)
Development Services Director Swanson stated that Assembly Bill AB 3305, The Swimming Pool
Safety Act, will become effective January 1, 1998, and it requires an isolation barrier between newly
constructed pools and single-family residences. Mr. Swanson stated that the ordinance before
Council for consideration brings the City's swimming pool ordinance into compliance with State law,
provides additional definitions and clarifies the requirements. He added that staff submitted the draft
ordinance to pool contractors for comment and no negative comments were received. It is the
recommendation of staff that the proposed ordinance be adopted.
Council Member Kehoe offered Ordinance No. 2198 for first reading, an ordinance of the City
Council of the City of Redding amending Redding Municipal Code Chapter 16.28, swimming pools.
MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, that the full
reading of Ordinance No. 2198 be waived and the City Attorney be instructed to read the full title.
The Vote: Unanimous Ayes
ELECTRIC UTILITY DEBT REDUCTION PLAN
(E-090-100)
Director of Electric Utility Feider recalled that the Finance Team headed by Public Financial
Management was established to develop strategic financial options to optimize utilization of the
revenue collected from the electric utility surcharge. The Finance Team has concluded that rate
reduction cash flow should initially be directed toward defeasance of the Utility's direct generation
debt as a first priority and remaining funds be applied toward payments for MSR generation debt.
If any funds are still available, those funds should be applied to transmission debt.
Mr. Feider stated that the Electric Department concurs with the Finance Team's recommendation
and, therefore, recommends Cash Defeasance as a debt retirement alternative. This alternative
assumes that the minimum level of operating reserves will be $5 million. He added that the program
to transfer funds to the debt defeasance escrow account can be terminated, or amended, by the City
Council at any time; however, funds already transferred to the escrow account must stay in the
account and must be applied to reduce the debt and are no longer available to the City for any other
purpose.
MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson to adopt the
debt reduction strategy of Cash Defeasance, to accumulate cash in the rate reduction fund and, on
a semi-annual basis, apply this cash to purchase irrevocable escrows'that will defease debt; and in a
case of a sizeable revenue shortfall which could not be covered by operating reserves, rate reduction
funds could be applied to offset, or temper, a rate increase. The Vote: Unanimous Ayes
RESOLUTION - Enhanced Wholesale Marketing Capability
(E-120)
Director of Electric Utility Feider stated that the Electric Utility began scheduling the purchase and
sale of electric power on a real-time basis on June 1, 1994. Mr. Feider stated that at this time, there
is a need to increase the market opportunities available to the Electric Department to conduct
wholesale business. Staff is proposing the use of brokers and/or marketers to assist staff in
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accomplishing transactions in the short-term wholesale power markets with the intent of marketing
large blocks of energy at a fixed and known price well ahead of the delivery date. Mr. Feider
explained that this would provide the City access to buyers and sellers the City otherwise would not
encounter.
Mr. Feider stated that the types of transactions include the wholesale purchase and sale of electric
power, futures contracts for electric power and options to purchase or sell futures contracts for
wholesale electric power. It is, therefore, the recommendation of staff to authorize staff to enter into
contracts to enhance its marketing ability.
MOTION: Made by Council Member Anderson, seconded by Council Member Kehoe, that
Resolution No. 97-203, a resolution of the City Council of the City of Redding authorizing the
Electric Utility to enter into enabling agreements in order to have enhanced wholesale marketing
capability. Voting was as follows:
AYES: Council Members - Anderson, Kehoe, McGeorge and Murray
NOTES: Council Members - None
ABSENT: Council Members - None
Resolution No. 97-203 is on file in the office of the City Clerk.
ELECTRIC UTILITY COST OF SERVICE STUDY
(E-090-058)
Director of Electric Utility Feider recalled that the consulting firm of R. W. Beck was awarded the
contract to prepare the Cost of Service Study to analyze the existing electric rate structures and
evaluate the potential cross-subsidies that may exist between customer class-specific electric rates.
Mr. Feider explained that the service computer model developed for Redding shows a difference in
customer contributions to utility revenue between residential and nonresidential of approximately 12-
13%. Mr. Feider stated that as the City positions the electric utility to operate in a competitive
environment where the cost to serve the individual residential customer is typically greater than the
cost to serve a business or industrial customer, the City Council may want Redding's electric rates
to more closely reflect the cost of providing that service. This would mean that the revenue
generated by each customer class should be equal to the cost of providing service to the respective
customer class.
Noting that City Council has already made adjustments to electric rates this year, Mr. Feider
recommended that Council make no further adjustments to the existing electric service rate structures
this fiscal year. However, it is staff's recommendation that Council adopt an objective of achieving
rate parity between classes over the next three to four years via future rate adjustments. He explained
that this would show that City Council realizes the importance of cost-based rates and cost
minimization for larger customers in the increasingly competitive electric service industry.
Frank Stra77arino, President of the Chamber of Commerce, stated that the Chamber had anticipated
receiving the report early enough to give the business community an opportunity to review the report
and provide input to Council. He expressed frustration that the business community, especially small
and intermediate-sized businesses, has not had an opportunity to review the report.
Mr. Straz7arino recommended that Council support staff's recommendation of no further adjustments
at this time and put some mechanism into place to look at the rate differential sooner rather than later.
He asked Council to allow more people into the decision making process and see what can be done
to relieve some of the burden on business.
Mayor Murray stated that he is very sensitive to the Chamber's interest in a full and thorough review.
He asked if the Chamber would like to meet with the business community and report back to Council
at its next meeting. Mr. Strazzarino replied affirmatively.
Council Member Anderson said he has no problem with acting on this issue tonight because staff s
recommendation is to make no rate increases for the balance of this year. He stated that the Chamber
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is welcome to comment on the report at a later time. Council Member Anderson clarified that the
utility should move toward rate parity, but he will not vote for a rate increase for residential
customers. He said that may mean waiting until 2004 when the rate reduction fund is no longer
necessary.
Council Member McGeorge agreed with Council Member Anderson. Noting that the electric
industry is in a tremendous state of flux, he expressed support for staff's recommendation. He noted
that Council and staff will stay abreast of changes in the industry and adjustments could be made in
small ways. Council Member McGeorge also opposed raising residential rates any further.
Council Member Kehoe recalled that when Council increased electric rates 23% to reduce the
Utility's debt, Council spoke of credibility, voracity and equity. City Council made it very clear that
it would not betray the public's trust and increase electric rates for residential customers above that
23%increase. He concurred with Council Members Anderson and McGeorge and stated that he is
not interested in considering a residential rate increase. Council Member Kehoe expressed interest
in lowering non-residential rates by examining savings that could be realized from the corollary issues.
He preferred Alternative 4 which makes no adjustments to the existing rate structure until the debt
reduction strategy is complete. At that time, lower rates for non-residential customers and rate parity
among classes could be achieved by removing as much of the interim rate surcharge as necessary from
non-residential rates to make the then current non-residential base rates equal to the cost of providing
non-residential service. A portion of the surcharge from residential rates could be removed to make
the effective rate equal to the cost of residential service.
Mayor Murray recommended that Council adopt Alternative 1. He acknowledged that the Chamber
has been active in this process and deserving of an opportunity to state its case. Mayor Murray
invited the Chamber to request time on the agenda at any time in the future. Mayor Murray stated
that his understanding of Council's action is different. Although he, too, does not want to raise rates,
he contended there was no commitment on the part of Council to not raise rates until the debt is
repaid. Mayor Murray opined that the commitment was to fully direct the 23% surcharge to reduce
debt. He said it was not his intent to freeze the base rate, merely the 23% surcharge, because the
Utility is not in control of external forces such as the cost of service.
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, to
approve Alternative 1 making no further rate adjustments this year, but achieve an objective of
achieving rate parity between classes over the next three to four years via future rate adjustments.
Voting was as follows:
AYES: Council Members - Anderson, McGeorge and Murray
NOES: Council Members - Kehoe
ABSENT: Council Members -None
Council Member Anderson clarified that he does not intend to vote for any rate increase until the rate
reduction fund is lifted. He said if the Utility realizes any savings and is able to reduce the rate to
commercial customers through cost savings, he would support that. If Utility operations require a
rate increase, he would support extending the period of time it takes to meet the elimination of Utility
debt.
RETAIL DIRECT ACCESS - Electric Utility
(E-090-058)
Director of Electric Utility Feider outlined staff's recommendations relative to implementing retail
direct access to competitively-priced electricity on the open market to the Electric Utility's customers.
Mr. Feider recommended that staff continue to monitor the developing energy marketplace and
pending State and Federal legislation and prepare and implement a low-cost positioning, direct access
strategy for possible implementation. The decision on whether to provide direct access would be
brought to Council by June 1, 1999, if the Utility were to move forward with open access by the year
2000.
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Council Member Anderson requested clarification regarding proposed legislation that limits the City's
ability to use tax-free debt-type financing if the City enters into the open market. He asked if the
Utility could remain a closed market if that legislation passes.
Mr. Feider said that is one interpretation. He added that the Utility has surplus power and requires
the ability to sell it on the open market and that legislation could prevent the Utility from selling
surplus power on the open market if it does not take the initiative on tax exempt financing.
MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, to direct staff
to continue monitoring the developing energy marketplace and pending State and Federal legislation;
prepare and implement a low-cost positioning, direct access strategy for possible implementation and
bring the decision whether to provide direct access to City Council by June 1, 1999. The Vote:
Unanimous Ayes
RESOLUTION - Electric Utility Lifeline Rate Program
(A-050-060-555 & E-090-100)
Director of Electric Utility Feider recalled that Assembly Bill 1890 mandated that beginning January
1, 1998, electric utilities shall fund Public Benefits Programs (PBP) at a level at least equal to 2.85%
of their base annual revenue requirements. Mr. Feider explained that Redding is already funding
PBP-qualifying programs such as energy conservation, load management and customer education and
assistance in the amount of$895,000 per year. The addition of the Lifeline Rate program in the
amount of approximately $800,000 per year brings the annual total to about $1,700,000.
Mr. Feider recalled that Council established a Lifeline Rate Program for qualifying electric utility
customers and was directed to review the program at the end of the calendar year. Based on an
annual budget not to exceed $800,000 and an annual maximum benefit of $147 per approved
customer, the program can be offered to approximately 5,000 customers. There are currently 843
participants in the program. After evaluating the program, staff is recommending that the qualifying
income level be raised to make the program available to more households.
It is the recommendation of staff that the maximum annual gross income level be raised to 75 percent
of median income for Redding and a medical deduction be allowed from a customer's gross annual
income of up to $700 for residents in the household who require the use of electrical equipment for
medical needs. This is a deduction of$350 for each person in the household with qualifying medical
needs, with a limit of two persons per household.
Council Member Anderson asked if any consideration was given to increasing the level of subsidy
above $147. Mr. Feider stated that staff considered additional credits; but, it would place their net
electric bill below what it was prior to implementation of the surcharge. Council Member Anderson
asked about the possibility of creating a sliding scale that would increase the subsidy for those with
lower incomes to reach those people most in need. Mr. Feider stated that staff will take that option
under consideration.
Council Member Kehoe asked how much the City is exceeding the PBP expenditure level required
under restructuring legislation. Mr. Feider conveyed that the Utility will exceed the PBP level if the
Utility incurs expenses for implementation of AB 1890. He added that if the City identifies qualifying
charges for implementation of AB 1890, other programs would be reduced so the state mandated
level would not be exceeded. Mr. Feider assured Council that staff will continue to monitor this
program.
MOTION: Made by Council Member McGeorge, seconded by Council Member Anderson, that
Resolution No. 97-204 be adopted, a resolution of the City Council of the City of Redding amending
Council Policy No. 1407, Electric Utility Lifeline Rate, effective December 1, 1997, raising the annual
gross income level to 75 percent of the median income for Redding and allow a medical deduction
from gross annual income of up to $700 for residents in a household.
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Voting was as follows:
AYES: Council Members - Anderson, Kehoe, McGeorge and Murray
NOTES: Council Members - None
ABSENT: Council Members - None
Resolution No. 97-204 is on file in the office of the City Clerk.
AWARD OF BID - Bid Schedule No. 3134, Tub Grinder
(B-050-100 & S-020-550)
Administrative Services Director Kersten stated that Pacific Utility Equipment Company submitted
a low, alternate bid for a 1996 demonstration model tub grinder for $167,334, plus optional
equipment and sales tax in the amount of$26,526.81, for a total of $193,860.81. Mr. Kersten
advised that this bid is $49,114.19 less than the low bid for a new, unused tub grinder that meets all
specifications. He explained that the used tub grinder has the same warranty and service as a new,
unused machine, with the exception that there is no trade-in allowance. Staff is confident that it can
sell the old tub grinder for approximately $30,000. It is, therefore, recommended that Council award
the bid to Pacific Utility Equipment Company.
Noting that Council is being asked to award an alternate bid, Council Member Kehoe stated that
although this is a good business decision, it does not seem compatible with the City's procurement
policies and the RFP process. He asked if the RFP should be canceled and rebid.
Mr. Kersten stated that it is difficult to anticipate every situation, therefore, staff did not foresee the
potential of the availability of a demonstration model. He conveyed, however, that the City reserves
the right to accept a bid containing deviations if they do not affect the overall capability of the item
bid, and such deviations result in a lesser total cost to the City.
MOTION: Made by Council Member Kehoe, seconded by Council Member McGeorge, to award Bid
Schedule No. 3134, Tub Grinder, to Pacific Utility Equipment Company in the amount of
$193,860.81, for a 1996 demonstration model. The Vote: Unanimous Ayes
PUBLIC COMMENT
(G-030 & P-050-460)
Fran Jenkins, 2652 Sharon Street, Redding, complimented City Council and staff for helping Mayor
Patricia Anderson through the last stages of her life. Mrs. Jenkins noted that Council helped her
complete her work as Mayor which was very important to her.
Mrs. Jenkins submitted packets to City Council regarding the proposed ACID canal hiking/biking
trail. Mrs. Jenkins stated that she has been attending meetings of the General Plan Task Force, and
she is concerned about the rights of private property owners along the ACID canal. She conveyed
that the trail designation was lifted for properties south of Parkview Avenue because of the residential
nature of the area. However, she is concerned that trail proponents will continue to bring the
proposal back to the Task Force. Mrs. Jenkins said it is a mistake to designate any part of the canal
bank as a public use recreation facility. Mrs. Jenkins submitted a list of 775 signatures from private
property owners who oppose the ACID trail. In addition, she said the Shasta County Cattleman's
Association and Cattlewomen are against the proposed trail. Mrs. Jenkins noted that the ACID rules
and regulations state that the canal is operated for the sole benefit of the lands and people within its
boundaries, and it will be difficult to set this aside legally. Mrs. Jenkins suggested that the General
Plan Task Force submit a minority and majority opinion on this issue.
Carl Arness, 2216 Oakridge Drive, Redding, noted that the public address system in the Council
Chambers has improved. Mr. Arness recalled that there used to be a gateway monument sign in the
1960s with lollipops. Mr. Arness also recalled that there was once a proposal to enclose the ACID
canal in a pipe and use it for a roadway.
Michael Brewman, 4389 Ackard Way, Redding, noted that teenagers do not have a place to in-line
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274
skate and skateboard. He asked if Council was going to address this issue. Mayor Murray conveyed
that land has been set aside in Caldwell Park for a skateboard park and a group of young people are
raising money to construct the facility. He also conveyed that there is a roller hockey rink in the new
Enterprise Community Park.
CLOSED SESSION
Mayor Murray stated that City Council will adjourn to closed session to discuss the following:
(1) Closed Session pursuant to California Government Code Section 54957.6:
CONFERENCE WITH LABOR NEGOTIATOR
Agency Negotiation: Randy Bachman
Employee Organization: Peace OfficetsAssociation of Redding, Miscellaneous
(P-100-050-120)
At the hour of 8:36 p.m., Mayor Murray adjourned the meeting to closed session.
At the hour of 9:01 p.m., Mayor Murray reconvened the meeting to regular session.
There was no reportable action taken.
ADJOURNMENT
There being no further business, Mayor Murray adjourned the meeting at the hour of 9:01 p.m.
APPROVED:
t
. 1
Ke Murra ayor
ATTEST:
.//r,
Connie Strohmayer, City :/erk
I
11/18/97