Loading...
HomeMy WebLinkAboutMinutes - City Council - 1998-03-17 59 City Council, Regular Meeting City Council Chambers 1313 California Street Redding, California March 17, 1998 7:00 p.m. The Pledge of Allegiance to the flag was led by Electric Program Supervisor Tom Graves. The invocation was offered by Pastor Lyle Faudree, Redding Christian Church. The meeting was called to order by Mayor Murray with the following Council Members present: Anderson, Kehoe, and Murray. Council Member McGeorge's absence was excused. Also present were City Manager Warren, Assistant City Manager Perry, City Attorney Wingate, Development Services Director Swanson, Public Works Director Russell, Deputy City Manager Starman, Support Services Director Kersten, Administrative Services Director Bachman, Planning Manager Keaney, Police Chief Blankenship, Airports Manager Dinger, Electric Utility Director Feider, Economic Development Asset Manager Hiller, Wastewater Superintendent Craig, Senior Planner DeMallie, Senior Planner Morgon, Personnel Analyst Sciarra, Personnel Analyst Niemer, Battalion Chief Eckard, Battalion Chief Ballard, Electric Program Supervisor Graves, City Treasurer Linville, City Clerk Strohmayer, Assistant City Clerk Moscatello, and Executive Secretary Lack. CONSENT CALENDAR The following matters were considered inclusively under the Consent Calendar: Approval of Minutes - Special Meeting of December 22, 1997, Regular Meetings of January 6, 1998, and January 20, 1998. Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register 17, for the period March 3, 1998, through March 13, 1998, check numbers 256583 through 256917 inclusive, in the amount of$3,926,915.58 and Payroll Register 18, check numbers 46710 through 47157 inclusive, and electronic deposit transaction numbers 447210 through 447606 inclusive, totaling$1,431,631.09 for the period February 22, 1998, through March 7, 1998, be approved. TOTAL: $5,358,546.67 Ordinance No. 2210 - re Redding Municipal Code Chapter 18.72, Pertaining to the Processing of Variance Applications (L-010-500-050) It is recommended that Ordinance No. 2210 be adopted, an ordinance of the City Council of the City of Redding amending portions of Redding Municipal Code Chapter 18.72, variance applications. Ordinance No. 2211 - re Redding Municipal Code Chapter 2.73.020, re Qualifications and Number of Members for the Community Development Advisory Committee (B-080-600-100) It is recommended that Ordinance No. 2211 be adopted, an ordinance of the City Council of the City of Redding amending portions of Redding Municipal Code Chapter 2.73.020 regarding miscellaneous boards, committees, and representatives. Redding Drag Strip - Status Report re Funding for Drag Strip Improvements (A-090-100) It is the recommendation of the City Manager that City Council accept the status report for the Redding Drag Strip improvements. Staff was not able to negotiate an agreement with Kool April Nites and the Northern California Drag Racing Association (NCDRA) to fund a number of capital improvements at the Redding Drag Strip. The City and NCDRA will proceed with the improvements to Old Oregon Trail previously approved by City Council. 03/17/98 60 Home Investment Partnerships Program (HOME) (G-100-075-200) It is the recommendation of the Deputy City Manager that City Council continue participation in the HOME Program at the State level and not obtain Federal Participating Jurisdiction status at this time. Funding success through the State is enhanced based on the City's excellent record and this alternative will maintain a wider scope of services for the community. Staff further recommends that participation remain with the State on an annual basis until such time it is determined to be in the best interest of the City to alter that course of action. MMP. Inc. Mechanical Services (M-010-200-395) It is the recommendation of the Support Services Director that Council authorize MMPI to rebuild the three heating and air conditioning units (4, 12 and 15) at the Downtown Mall for a cost not to exceed $41,000. The Midtown Mall restricted cash account from the property assessments contains a sufficient balance of$44,9"3 to cover the costs. Monthly Activity Report - February, 1998 (A-050-122) It is the recommendation of the Development Services Director that City Council accept the monthly activity reports through February, 1998, for the following work areas as submitted: 1. Zoning, Subdivision, and General Plan Amendments 2. Building and Population 3. General Plan Update Award of Bid - re Bid Schedule No. 3165, Purchase of One 115kv Circuit Switcher and Support Structure (B-050-100 & E-090-140-250) It is the recommendation of the Electric Utility Director that Bid Schedule No. 3165, purchase of one 115kv circuit switcher and support structure for the East Redding Substation Project be awarded to S&C Electric, in the amount of$34,570 which excludes optional Bid Groups II and III. Status Report - re Electric Utility Debt Reduction Program (E-090-100) It is the recommendation of the Electric Utility Director that the City Council accept the Electric Utility Debt Reduction Program Report as presented. The Utility's outstanding direct debt through the end of March is $161.7 million. Western Area Power Administration (WAPA) - re Contract No. DE-MS65-86WP59048 (E-120-900) It is the recommendation of the,Electric Utility Director that City Council authorize the City Manager to issue Western Area Power Administration a six-month notice of termination on Bill Crediting Contract No. DE-MS65-86WP59048. This action enables the City of Redding to no longer be obligated to pay WAPA through the entities it contracts with to provide power. Agreement - with Boom Boom Productions for the July 4, 1998, Freedom Festival Fireworks Display (C-050-050 & R-050) It is the recommendation of the Community Services Director that City Council approve and authorize the Mayor to execute the agreement with Boom Boom Productions for provision of pyrotechnic services for the 1998 Freedom Festival Fireworks Display in the amount of$50,000 to be funded through a grant from the McConnell Foundation. Resolution - re Purchase of 12 New Police Vehicles (B-050-100 & P-150-150) It is the recommendation of the Chief of Police that Resolution No. 98-25 be adopted, a resolution of the City Council of the City of Redding authorizing the purchase of 12 new, marked police vehicles through the Department of General Services of the State of California for a cost of approximately $326,424. 03/17/98 61 Request for Proposal - re Employee Workers' Compensation Administration Services Agreement - Claims Management, Inc. (B-050-100 & R-100-950) It is the recommendation of the Administrative Services Director that City Council approve Proposal No. 3160, employee workers' compensation administration services; and approve the extension of the existing agreement with Claims Management, Inc., for claims service to the City for the next three years through March 30, 2002, at the annual fee of$83,000. Agreement - Blue Cross Life & Health Insurance Company (P-100-150-030) It is the recommendation of the Administrative Services Director that City Council authorize staff to enter into an administrative agreement with Blue Cross Life & Health Insurance Company for the provision of preferred provider organization services for the City's employee group health program, effective April 1, 1998, through December 31, 1998. Award of Bid - Bid Schedule No. 3159, Hangar Replacement at Redding Municipal Airport Resolution - Appropriation of Funds (B-050-020/A-090-100/B-130-070) It is the recommendation of the Public Works Director and the Development Services Department that the City Council award Bid Schedule No. 3159 (Job No. 9219) to Peters Construction in the amount of $125,944, an additional $12,000 be approved to cover the cost of engineering and inspection fees, and $15,000 be approved to provide a construction contingency fund, for a total of $152,944. It is further recommended that Resolution No. 98-27 be adopted, a resolution of the City of Redding approving and adopting the 18th amendment to City Budget Resolution No. 97-1 1 1 appropriating $14,000 for hangar replacement at the airport. Request for Proposal - re Westside Sewer Interceptor Project Contract Agreement - CH2M Hill/PACE Engineering (B-050-100 & W-030-610) It is the recommendation of the Public Works Director that City Council approve Proposal No. 3164 authorizing staff to negotiate a contract for hydraulic modeling and preliminary design services for the Westside Sewer Interceptor Hydraulic modeling and Phase 1 preliminary design with CH2M Hill/PACE Engineering for City Council's approval. This will allow the final design process to commence on schedule and make construction plans and specifications available for advertisement by April or May, 1999. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. Voting was as follows: Ayes: Council Men:'hers - Anderson, Kehoe, and Murray Noes: Council Members - None Absent: Council Members - McGeorge Abstain: Council Members - None Resolution Nos. 98-25, and 98-27 and Ordinance Nos. 2210, and 2211 are on file in the office of the City Clerk. PUBLIC HEARING - re Abandonment Application A-8-97, Portion of Canyon Creek Road Right- of-Way, by the Redding Redevelopment Agency RESOLUTION (A-010-100) The hour of 7:00 p.m. having arrived, Mayor Murray opened the public hearing regarding Abandonment Application A-8-97, by the Redding Redevelopment Agency. The following documents are on file in the office of the City Clerk: 03/17/98 62 Affidavit of Mailing - Notice of Public Hearing Affidavit of Publication - Notice of Public Hearing City Clerk Strohmayer advised that no protests were received. Planning Manager Keaney provided an overview of the Report to City Council dated March 2, 1998, incorporated herein by reference, regarding abandonment application A-8-97, by the Redding Redevelopment Agency. Mr. Keaney conveyed that the Planning Commission, at its December 9, 1997, meeting, recommended approval of an abandonment proposal in concept by the Redding Redevelopment Agency. The request is to abandon an approximate 260-foot-long section of Canyon Creek Road south of its intersection with the new Buenaventura Boulevard. Upon completion of the remainder of the Westside Road realignment project, this section of Canyon Creek Road will no longer be needed for public-street purposes. It is, however, needed as convenient access to Fire Station No. 3 and to the businesses on the south side of Canyon Hollow Creek until the Westside Road alignment is completed. The abandonment is necessary in order to record a parcel map for a property-line adjustment, which will eliminate a hazardous intersection at the Buenaventura Boulevard/Westside Road/Railroad Avenue/Highway 273 area. It is the recommendation of staff and the Planning Commission that the City Council abandon the Canyon Creek Road right-of-way. It is further recommended that the negative declaration prepared for Lot Split LS-15-96 be adopted and the attached resolution be adopted subject to: 1. Retention of a public-service easement over the entire area of abandonment. 2. Completion of the Westside Road realignment between Buenaventura Boulevard and Westside Road. Mayor Murray determined that there was no one present wishing to speak on the matter and closed the public hearing. MOTION: Made by Council Member Anderson, seconded by Council Member Kehoe, to approve Lot Split LS-15-96, as presented and make the following findings: 1. The project is compatible with the Redding General Plan; 2. The project will not significantly alter existing land form; 3. The project is compatible with surrounding land use; 4. The project is compatible with the code of the City of Redding, California, and approve the Negative Declaration authorized by the Development Services Department. Voting was as follows: Ayes: Council Members - Anderson, Kehoe and Murray Noes: Council Members - None Absent: Council Members - McGeorge Abstain: Council Members - None MOTION: Made by Council Member Anderson, seconded by Council Member Kehoe, to adopt Resolution No. 98-28, a resolution of the City Council of the City of Redding ordering the vacation of that portion of the Canyon Creek Road Right-of-Way (A-8-97) subject to retention of a public- service easement over the entire area of abandonment, and completion of the Westside Road realignment between Buenaventura Boulevard and Westside Road. Upon completion of the realignment of Westside Road, the City Clerk is directed to record the resolution. Voting was as follows: Ayes: Council Members - Anderson, Kehoe and Murray Noes: Council Members - None Absent: Council Members - McGeorge Abstain: Council Members - None PUBLIC HEARING - to Consider Resolution Levying the Annual Assessment in the Downtown Redding Business Improvement District, FY 1998-99 (A-170-015-002) The hour of 7:00 p.m. having arrived, Mayor Murray opened the public hearing to consider levying of annual assessments in Downtown Redding Business Improvement District (BID). The following documents are on file in the office of the City Clerk: 03/17/98 63 Affidavit of Publication - Notice of Public Hearing City Clerk Strohmayer advised that no protests were received. Deputy City Manager Starman provided an overview of the Report to City Council dated March 9, 1998, incorporated herein by reference, to consider levying annual assessments in the Downtown Redding Business Improvement District. Mr. Starman explained that at its meeting of March 3, 1998, the City Council received the Annual Report from the Downtown Redding Business Association and adopted Resolution No. 98-26, declaring its intention to levy and collect an annual assessment for fiscal year 1998-99 in the Downtown Redding BID, and set a public hearing to consider the matter. The purpose of the public hearing is for the City Council to hear and consider all protests against the levying of the proposed assessments. The Annual Report, however, proposes no changes to the BID boundaries or the assessment formula, as established last year. It is the recommendation of staff that the City Council adopt the resolution confirming the Annual Report as originally filed by the Downtown Redding Business Association and levying the annual assessment for fiscal year 1998-99 in the Downtown Redding Business Assessment District. Mayor Murray determined that there was no one present wishing to speak on the matter and closed the public hearing. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, that Resolution No. 98-29 be adopted, a resolution of the City Council of the City of Redding confirming the annual report for the Downtown Redding Business Association and levying the assessment for the Downtown Redding Business Improvement District for fiscal year 1998-99. Voting was as follows: Ayes: Council Members - Anderson, Kehoe and Murray Noes: Council Members - None Absent: Council Members - McGeorge Abstain: Council Members - None CONTINUED PUBLIC HEARING- re Amendment to Planned Development PD-1-94, Tierra Oaks Planned Development, Adjacent to Tierra Oaks Golf Course and North and West of Old Oregon Trail and East of Moody Creek, by Blackpointe Homes, Inc. (L-010-211-002) The hour of 7:00 p.m. having arrived, Mayor Murray opened the continued public hearing regarding Amendment to Planned Development PD-1-94, Tierra Oaks Planned Development. The following document is on file in the office of the City Clerk: Affidavit of Notice of Continued Public Hearing City Clerk Strohmayer advised that protests were received. City Manager Warren abstained from discussion on the matter. Planning Manager Keaney summarized the Report to City Council dated March 9, 1998, incorporated herein by reference, regarding amendment to Planned Development PD-1-94, Tierra Oaks Subdivision. Mr. Keaney reported that at its meeting of February 17, 1998, the City Council opened the public hearing to consider a request by Blackpointe Homes, Inc., to amend the approval of the Tierra Oaks Planned Development, at which point City Council continued the public hearing to tonight's meeting of March 17, 1998. Due to the complexity of the project, the recent field trip to the property conducted on February 26, 1998, and the anticipated absence of Council Member McGeorge at the March 17, 1998, meeting, it is recommended that City Council accept any public testimony, and continue the public hearing to March 23, 1998. Roy Barker, 10482 Leslee Lane, Portland, Oregon, indicated that after visiting various locations in Redding, he and his wife determined that the Tierra Oaks area was where they wanted to retire. He conveyed that they have not built at Tierra Oaks yet, but he expressed concern about proposed 03/17/98 64 amendments being inconsistent with the existing subdivision; i.e., smaller lot and home sizes, the removal of trees, lack of security and grading. Kathy Page, 13335 Tierra Heights, stated that she and her husband moved to Redding from Pleasanton, California, in September, 1995, and they were impressed with the beauty and spaciousness of Tierra Oaks. Mrs. Page said they are opposed to strict CC&Rs being changed to alter the original intent of the subdivision. She opined than an outside marketing firm should not determine what will sell in Redding. Mrs. Page conveyed that they do not want to pay an additional fee to be a part of the homeowners association. Mrs. Page expressed concern about their security without the protection of an exterior gate, and Tierra Oaks being bulldozed and divided up into small padded lots. She asked City Council to deny the request for amendments to the Planned Development. Gary Pappas, 714 NE Baldwin Street, Hillsboro, Oregon, stated that he investigated the Redding area and chose Tierra Oaks as a place he would like to retire based on the large lot sizes and the CC&Rs. Mr. Pappas stated that the proposed amendments are completely contrary to the type of subdivision they want to live in. He said that Blackpointe Homes has gone to the extreme and they are not being considerate of the people that already live and own lots there. Mr. Pappas opined that Blackpointe Homes should study the proposal and develop an alternative plan that would be a compromise for all involved. David Lonich, CEO, Blackpointe Homes, indicated that he will be attending the special City Council meeting and will hold his comments until that time. It was the consensus of City Council to continue public hearing to the special City Council Meeting of March 23, 1998, to discuss the Amendment to Planned Development PD-1-94, Tierra Oaks Subdivision. CITIZENS COMMITTEES - Implementation Teams for the Priority Projects (B-080-600) Deputy City Manager Starman provided an overview of the Report to City Council dated March 10, 1998, incorporated herein by reference, regarding the creation of and appointments to the Priority Project Teams. Mr. Starman explained that when City Council approved the list of priorities in December, 1997, staff was also directed to create three teams to help implement the Turtle Bay, Downtown/Market Street, and Sports Complex projects. Staff is now prepared to form the three teams, but is requesting direction from Council on the selection process. Mr. Starman stated that the teams will be advisory in nature and staffed by City employees. The City Council and/or the Redding Redevelopment Agency will ultimately make all final decisions. Mr. Starman asked City Council to provide guidance with the selection process. Mayor Murray encouraged citizens who are interested in being involved with the growth of the community to apply at the City Clerk's office. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, to establish citizen committees for the following priority projects: a seven-member team for Turtle Bay pursuant to the following recommendation: Mayor Murray, two nominations; Vice Mayor Anderson, two nominations; Council Member McGeorge, one nomination; Council Member Kehoe, one nomination; and City Manager Warren, one nomination; a five-member team for the Sports Complex and a five- member team for Downtown/Market Street Improvements pursuant to the following recommendation: Mayor Murray, one nomination each; Vice Mayor Anderson, one nomination each; Council Member McGeorge, one nomination each; Council Member Kehoe, one nomination each; and City Manager Warren, one nomination each; and direct staff to issue a public service announcement requesting applications for the committees. Voting was as follows: Ayes: Council Members - Anderson, Kehoe and Murray Noes: Council Members - None Absent: Council Members - McGeorge Abstain: Council Members - None 03/17/98 65 LEASE AGREEMENT - re Second Addendum and Amendment to Ground Lease Agreement with Jack Stringer at Redding Municipal Airport (C-070-100 & A-090-100) Airports Manager Dinger reviewed the Report to City Council dated March 9, 1998, incorporated herein by reference, regarding the request for amendment to Jack Stringer Ground Lease at Redding Municipal Airport. Mr. Dinger reported that at the April 13, 1992, meeting, the City Council approved a request from Jack Stringer for a ground lease to enable Mr. Stringer to build an 80-foot by 80-foot corporate aircraft :iangar at the Redding Municipal Airport to store his personal aircraft. In January, 1998, Mr. Stringer requested an amendment to reflect a change in the permitted use of the hangar to include aircraft maintenance and repair activities. This change meets the guidelines as outlined in City Council Policy No. 302 (Minimum Standards for Commercial Activities at Redding Municipal Airport). Mr. Stringer intends to sublease the hangar to Mr. Gary Walker, who intends to open a specialty fixed-based operation (FBO) and conduct aircraft maintenance and repair services. The lease amendment will also allow the City to update the insurance requirements as well as permit commercial activities. It is the recommendation of staff that the City Council approve a lease amendment with Jack Stringer permitting commercial activities within the Stringer Hangar that would be restricted to aircraft maintenance and repair activities. In response to Mayor Murray, Mr. Dinger indicated that the amendment will permit a specialty FBO, not a full-service FBO. Conversely, a full-service FBO is permitted to sell fuel and offer a full range of activities. Mr. Dinger stated that there is one FBO at Redding Municipal Airport and one FBO at Benton Airport. Ascot Aviation is also in negotiations with the City of Redding to become a full- service FBO. However, Ascot is not open for business at this time and it is expected to take an additional 45 days to complete the negotiation process. Mr. Dinger recommended that the City not restrict uses at the Airport. He noted that Federal Aviation Administration guidelines recommend that the City not discriminate against a business requesting a FBO designation and competition should be permitted. In response to Mayor Murray's inquiry regarding the number of FBOs outlined in the Airport Master Plan, Mr. Dinger stated that the document is only a guideline and City Council has the ability to be flexible. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, to approve the Second Addendum and Lease Agreement with Jack Stringer to the permit for commercial activities to allow aircraft maintenance and repair activities, effective March 4, 1998. Voting was as follows: Ayes: Council Members - Anderson, Kehoe and Murray Noes: Council Members - None Absent: Council Members - McGeorge Abstain: Council Members - None WESTERN AREA POWER ADMINISTRATION (Western) - re Contract Amendments with Western to Accommodate the California Independent System Operator (ISO) (E-120-900 & E-090-058-300) Electric Utility Director Feider requested that this matter be continued to the adjourned regular City Council Meeting scheduled for March 23, 1998; however, he provided an overview of the Report to City Council dated March 12, 1998, incorporated herein by reference, requesting contract amendments with Western Area Power Administration (Western) to accommodate California Independent System Operator (ISO). Mr. Feider explained that since June 1, 1994, Western has been providing control area services to Redding while under contract with the City of Redding. With the startup of the California ISO on March 31, 1998, Western's role as Redding's scheduling agent with the control area operator, currently PG&E, must either change materially to the role of Redding's Scheduling Coordinator (SC) as defined by the ISO's Federal Energy Regulatory Commission (FERC) -filed surcharge, or Redding must be prepared to litigate for its existing contract rights. Within the past year, Redding has been participating in litigation proceedings at the FERC to request modifications to the tariff filings as submitted by the ISO. Redding has explained to FERC that the 03/17/98 66 new ISO control area needs to also recognize and accommodate existing wholesale contracts. The effort by Redding and other municipal utilities has been a continual uphill battle because the ISO was designed by the investor-owned utilities to only operate in the new, open-access paradigm, exclusive of a wholesale power market. FERC has strongly opined to the ISO that it must honor existing contracts. In order to retain most of the benefits of Redding's existing contracts with Western, Redding and Western have engaged in negotiations with the ISO to develop an agreement that will both preserve the principal benefits of Redding's existing contracts and provide the ISO with the information it has requested to operate its new control area. The agreement would provide for Western to act as Redding's SC with the ISO. Western would be responsible for the delivery of Redding's power schedules to the ISO and for either the self-provision or the purchase of the additional ISO-related services. In order to accommodate the Western/ISO relationship for Redding, Mr. Feider conveyed that Redding and Western need to include an additional exhibit to the existing contract that will provide for Western to act in the capacity of Redding's SC. The new Redding/Western Exhibit K (currently in draft form) would provide for the flow of ISO-related services and costs through Western to Redding. A critical relationship exists between the Western/ISO Agreement and the new Exhibit K. Redding and Western must secure from the ISO a complete understanding of Redding's cost exposure to ISO-related costs before Redding is willing to allow Western to pass such costs on to Redding. Additionally, with PG&E joining the ISO, the relationship between PG&E and Western is changing. With this change, the modification of two existing contract exhibits between Redding and Western is necessary. Therefore, Western and the Redding Electric Department are finalizing modifications to Exhibits G and J to accommodate the changes necessary for Western's provision of regulation and imbalance service to Redding. Mr. Feider stated that two major events have occurred within the past two days: I) the ISO has offered a formal settlement package to protect the existing contracts without passing on the additional fees, which could amount to approximately $750,000 a month for the City of Redding, and 2) PG&E has reached an agreement with ISO to continue scheduling Redding's power without the ISO assessing the charges to PG&E. It is staff's intent to complete the negotiations and bring the finalized Exhibit K back to City Council for approval; therefore, it is the recommendation of staff that the City Council continue this agenda item to March 23, 1998, in order to allow for execution of Exhibit K prior to the anticipated March 31, 1998, startup date for the ISO. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, to continue consideration of the proposed contract amendments with Western to a meeting on March 23, 1998. Voting was as follows: Ayes: Council Members - Anderson, Kehoe and Murray Noes: Council Members - None Absent: Council Members - McGeorge Abstain: Council Members - None RESOLUTION - re Cooperative Agreement No. 02-0015 with Caltrans for a traffic signal at Eureka Way and Eleventh Street (S-050-100 & T-080-700) Public Works Director Russell highlighted the Report to City Council dated March 10, 1998, incorporated herein by reference, regarding a cooperative agreement with Caltrans for a traffic signal at Eureka Way and Eleventh Street. With the completion of the North Court Street extension, more traffic is utilizing the Eureka Way/Court Street intersection. The City has budgeted for an upgrade to this signal in the current fiscal year. In addition, because Eureka Way is state right-of-way, Caltrans desires to signalize the next intersection to the west, Eureka Way and Eleventh Street, thus reducing congestion at Eureka and Court and reducing the need for additional right of way. In addition to this signal, the state also desires to install railroad preemption at the intersections of California/Placer and California/South. The Institute for Transportation Studies (ITS) under the direction of the Federal Highway Administration (FHA) has changed the criteria for the distance traffic may que between a signal and railroad tracks and as a result, both Placer Street and South Street at California Street need railroad preemption. 03/17/98 67 It is the recommendation of staff that the City Council enter into Cooperative Agreement No. 02- 0015 with the State of California for the signalization of the Eureka Way/Eleventh Street intersection. The total cost for these projects, including design and construction engineering, is estimated to be $272,600. The City's share of$136,300, has been budgeted and is being funded from Traffic Impact Fees. In response to Mayor Murray, Mr. Russell explained that the total cost for the railroad preemption is $17,500, and the City's share is $8,750. The balance of $127,550 is the City's share of cost for the Eureka Way/Eleventh Street intersection. Noting that traffic impact fees are collected to mitigate the impact of growth, Mayor Murray inquired why traffic impact fees are being used for a Federal mandated project. Mr. Russell stated that the City has the potential for liability if it does not make the improvements and there is an accident. He conveyed that funds from the Capital Improvement Fund or the General Fund may also be used. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, that Resolution No. 98-30 be adopted, a resolution of the City Council of the City of Redding to enter into Cooperative Agreement No. 02-0015 between the City of Redding and the State of California (Caltrans) for the signalization of the Eureka Way/Eleventh Street intersection and installing railroad preemption on Route 273, and authorized reimbursement of$8,750 from the Capital Improvement Fund for the City's share of'he railroad preemption. Voting was as follows: Ayes: Council Members - Anderson, Kehoe and Murray Noes: Council Members - None Absent: Council Members - McGeorge Abstain: Council Members - None 1998 STILLWATER SERVICE AREA - re Interim Sewer Study (W-010-560) Wastewater Superintendent Craig provided an overview of the Report to City Council dated March 9, 1998, incorporated herein by reference, regarding the 1998 Stillwater Service Area Interim Sewer Study. In 1992, the City of Redding sponsored an engineering investigation to develop a master sewer plan to serve the northeastern portion of the Redding sewer service area. This area was referred to as the Stillwater Service Area and was made up of the Twin View, Eastern Enterprise, and Stillwater Creek Service Areas. The 1992 Stillwater Service Area Master Sewer Plan has areas within the eastern City limits that were planned to be served by a new trunk sewer system. Unfortunately, most of the proposed sewer trunk lines in that basin are outside the City limits, and most of the properties these sewers would serve are also outside the City limits. It has not been practical for the properties within the City limits to obtain sewer service according to the Master Plan. In December, 1997, the Department of Public Works issued a purchase order to PACE Engineering to study alternative methods of sewering properties in the Stillwater drainage area that are within the City limits. The final report, titled"1998 Stillwater Service Area Interim Sewer Study" has now been completed and is being presented for City Council's acceptance. Several property owners within the City limits and in the Stillwater drainage area have been trying to develop their properties according to the 1992 Stillwater Area Master Sewer Plan. The three primary requests have been from Art Condiotti who is represented by John Sharrah, Jeff Mora who is represented by Duane Miller, and Gold Hills Subdivision which is represented by Frank Sawyer. The 1992 plan lays out a sewer system to serve the ultimate development within the Stillwater drainage area. That Master Plan recommends the construction of a large gravity trunk sewer following Stillwater Creek outside the City limits with ony one permanent lift station. The cost of constructing this Master Plan system is more than these developments can fund without an assessment district where all benefitting property owners share the cost. Since about 89 percent of the property in the Stillwater drainage area is outside the City limits, an assessment district has not been achievable for this area. As a result, the three property owners, who are within the City limits, have separately proposed multiple sewer lift stations to serve their properties by pumping west across the drainage boundary into the City's Upper Churn Creek trunk and Eastside Interceptor sewers. Pumping from the Stillwater drainage into the Churn Creek drainage area is a concern to the City's Public Works Department because it is in conflict with the 1992 Master Plan and there is limited capacity available in the Eastside Interceptor. In addition, the use of lift stations increases the City's operation and maintenance costs and do not have the reliability of gravity sewer systems. 03/17/98 68 The 1998 Stillwater Service Area Interim Sewer Study encompasses 968 acres with a development potential of 2,902 household equivalents. All the alternatives studied by PACE require several lift stations to minimize construction outside the City limits. It is staff's recommendation that City Council accept the"1998 Stillwater Service Area Interim Sewer Study." This action would allow the use of regionalized interim sewer lift stations until such time in the future that development can proceed east of the current City limits and utilize the 1992 Master Sewer Plan. The operation and maintenance costs will be absorbed within the City-wide rate structure. The City Council should require the developers to pay an additional $1,100 per household equivalent as their fair share of the future Stillwater gravity trunk sewer. City Manager Warren reviewed two alternatives for City Council's consideration: 1) Wait until the Stillwater area is ready for development and give the General Plan Task Force an opportunity to plan for the entire basin, or 2) Allow property owners within the City limits the opportunity to develop. Mr. Warren explained that lift stations are expensive to operate and maintain and the utility should not bare that expense. Mr. Warren recommended that the cost of operation and maintenance of the lift stations be borne by the affected property owners or through a rate increase by all the users. In addition, a $1,100 fee per household equivalent should be collected from developers to pay for the gravity feed trunk sewer line when the area develops in accordance with the 1992 Stillwater Area Master Sewer Plan. In response to Council Member Anderson's concern about the cost of any major breakdown, Mr. Warren said that the fee could be adjusted by City Council should problems arise. Duane Miller, 2846 East Street, Anderson, representing two land owners within the Stillwater Basin, stated that both of the land owners have development projects pending Council's approval of an interim solution. He encouraged City Council to accept the interim sewer study so the projects can proceed. Ronda Culp, marketing agent for Jeff Mora, conveyed that there is a demand in this location for new homes. Jeff Mora, 11649 Twin Tower, who has been working on developing his property for several years, asked Council to accept the interim sewer study and support development in the area. He noted that the construction of interim lift stations is not the most desirable alternative but the construction of a gravity feed sewer line will not happen in the near future. Council Member Kehoe stated that he has not heard any compelling reason to diverge from the 1992 Master Sewer Plan. He said that if Council wants to support development in this area now, the cost to the City should be neutral, and he suggested that the $1,100 per household equivalent be adjusted annually. Council Member Kehoe stressed that the cost should not be placed on the community, but should be paid for by the users. Council Member Anderson concurred and stated that he would like to wait for build out in accordance with the Master Plan, but annexation is not going to occur. While the options outlined in the Interim Study are not ideal, he would support the plan if it were revenue neutral. Council Member Anderson stated that the City is overbuiltwith residential construction, but that is the private sector's risk. Mayor Murray agreed and recommended that City Council accept the Interim Sewer Study and refer it back to staff for implementation as long as it is cost neutral to other users. MOTION: Made by Council Member Kehoe, seconded by Council Member Anderson, to accept the 1998 Stillwater Service Area Interim Sewer Study and direct staff to implement the use of regionalized interim sewer lift stations until such time in the future that development can proceed east of the current City limits and utilize the 1992 Master Sewer Plan, and the cost of construction, maintenance and operation of lift stations and sewer infrastructure will be borne by the affected property owners. Voting was as follows: Ayes: Council Members - Anderson, Kehoe and Murray Noes: Council Members - None Absent: Council Members - McGeorge 03/17/98 69 ORAL COMMUNICATIONS (L-010-390) Tom Cross, 2360 Airstrip Road, questioned when the grading plan for Use Permit UP-39-97, by Lon Tatom, approved at the January 6, 1998, City Council meeting, would be corrected. Mayor Murray explained that after viewing the video tape of the January 6, 1998, City Council meeting and reviewing the file on the matter, he indicated that although the grading elevation has remained the same, City staff has agreed to offset the height by lowering the wall height. Therefore, the overall elevation will be no higher than what was previously approved by City Council. Mayor Murray noted that this is a minor variation within the terms of the agreement upheld by Council. Mayor Murray related that Mr. Cross' options are to: 1) file a civil suit; 2) contact individual Council Members to place this matte, back on the agenda; and 3) make a presentation this evening. ORAL COMMUNICATIONS (G-030) Fran Jenkins, Redding, indicated that she has been attending the meetings of the General Plan Task Force for many months. She expressed concern that the provisions for public comment on the draft General Plan prior to the Planning Commission meetings are not sufficient. She opined that a public forum would result in a more well thought out plan, and she urged the City to develop such a forum prior to the time the plan advances from the Task Force to the Planning Commission. Council Member Kehoe requested the attendance roster from the beginning of the Task Force meetings to date. ORAL COMMUNICATIONS (P-100-050-120) Craig McGuire, 4135 Bella Drive, said he is outraged by the billboard put up by the Redding Peace Officers Association on Interstate 5 and opined that it has resulted in irreparable damage to their association, the community as well as the businesses in Shasta County. CLOSED SESSION Mayor Murray stated that the City Council will adjourn to closed session to discuss the following: (1) Pursuant to California Government Code Section 54956.9: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Gary L. Finley, et al. vs. City of Redding, et al., Shasta County Superior Court Case No. 1336633 (L-100) (2) Pursuant to California Government Code Section 54957.6: CONFERENCE WITH LABOR NEGOTIATOR Agency Negotiator: Randy Bachman Employee Organization: Peace Officers Association of Redding (P-100-050-120) At the hour of 8:33 p.m., Mayor Murray adjourned the meeting to closed session. At the hour of 9:50 p.m., Mayor Murray reconvened the meeting to regular session. No action was taken. • 03/17/98 70 ADJOURNMENT There being no further business, at the hour of 9:51 p.m., Mayor Murray declared the meeting adjourned to Monday, March 23, 1998, at 5:15 p.m., in the City Council Chambers, 1313 California Street, to consider the following matters: 1. Continued public hearing regarding the request for an amendment to Planned Development PD-1-94, Tierra Oaks Subdivision, by Blackpointe Homes, Inc. 2. Contract amendments with Western Area Power Administration (WAPA) to accommodate the California Independent System Operator (ISO). APPROVED: M.yor ATTEST: City Clerk /4 03/17/98