HomeMy WebLinkAboutMinutes - City Council - 1998-08-18 220
City Council, Regular Meeting
Council Chambers
1313 California Street
Redding, California
August 18, 1998 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Mr. Clay McClain.
The Invocation was offered by Development Services Director Jerry Swanson.
The meeting was called to order by Mayor Kehoe with the following Council Members present:
Anderson, Cibula, Kight, McGeorge, and Mayor Kehoe.
Also present were Assistant City Manager Perry, City Attorney Wingate, Deputy City Manager
Starman, Director of Public Works August, Director of Electric Utility Feider, Chief of Police
Blankenship, Police Captain Davidson, Fire Chief Wagner, Director of Development Services
Swanson, City Treasurer Linville, Finance Officer Strong, Budget Services Officer Davis, Assistant
City Engineer Russell, Planning Manager Keaney, Director of Community Services Gorman,
Superintendent-Wastewater Craig, Administrative Services Director Bachman, Management Analyst
Dent, Recreation Superintendent Carpenter, Housing Manager Flory, Economic Development
Manager Hiller, City Clerk Strohmayer, Assistant City Clerk Moscatello, and Executive Secretary
Miller.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
Approval of Minutes - Regular Meeting of June 16, 1998, and Special Meeting of July 13, 1998
Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 3, for the period August 4, 1998, through
August 13, 1998, check numbers 260814 through 261193 inclusive, in the amount of
$3,490,132.16, and Payroll Register No. 3, check numbers 452659 through 453072 inclusive,
totaling $575,818.47, and electronic deposit transaction numbers 51848 through 52326, totaling
$809,489.47 for the period July 26, 1998, through August 8, 1998, be accepted.
TOTAL: $4,875,440.10
Ordinance No. 2221- Amending Redding Municipal Code Section 2.52.070
(B-080-300)
It is the recommendation that Ordinance No. 2221, be adopted, an ordinance of the City Council
of the City of Redding amending Redding Municipal Code Section 2.52.070 to change the time of
the Planning Commission meetings to 4:00 p.m.
Application for Designation of a Federal Empowerment Zone
(E-050)
It is the recommendation of the Economic Development Manager that the City Council accept the
report regarding the update on the application for designation of a Federal Empowerment Zone which
would team the City with Siskiyou and Trinity Counties. Superior California Economic Development
District, who would serve as the lead agency for the application, recommends that the application not
be attempted during this round of designation. Because of time constraints and availability of staff,
it would not be possible to submit a "competitive" application. Superior California Economic
Development District, City of Redding staff, and staff from each jurisdiction favor continuing the
application process into the next round of applications in 1999.
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Consent Calendar Protocol
(A-050-060)
It is the recommendation of the City Manager that City Council approve modification of City Council
agenda consent calendar protocol to allow a Council Member who wishes to abstain or vote no on
a consent calendar item to bring that to the attention of the other Council Members and the public
upon approval of the consent calendar. However, this protocol does not negate the right of any City
Council Member to pull an item from the consent calendar and place it on the regular calendar for
discussion purposes.
Civic Center Deductive Change Orders - Bid Schedule 3204
(B-050-020 & C-050-025)
It is the recommendation of the Assistant City Manager that City Council approve deductive change
orders reducing the cost of the Civic Center Project in a bid awarded to Allen L. Bender, Inc., from
$15,147,778 to $14,340,666, plus a 5 percent construction contingency; that staff be authorized to
do add backs of up to one-half of the construction contingency if it appears that less than that amount
will be needed to complete the building; and that staff be directed to assume that the sunshades on
the south side of the building to reduce heat gain will qualify for public goods funds in an amount not
to exceed $32,000, or that they can be kept if the $807,000 goal can be met by other means.
Voting was as follows:
Ayes: Council Members - Anderson, Cibula, Kight, and McGeorge
Noes: Council Members - Kehoe
Absent: Council Members - None
Abstain: Council Members - None
Set Public Hearing Regarding Disposition of the Redding Redevelopment Agency's Property at 4210
Westside Road
(R-030-145-050)
It is the recommendation of the Deputy City Manager that City Council set a joint public hearing with
the Redding Redevelopment Agency for 7:00 p.m., Tuesday, September 1, 1998, to consider the
proposed sale of the Agency's property at 4210 Westside Road to Dr. Eddie Troop and Linda
McMahan.
Selection of Consultant to Provide Testing and Inspection Services for New Civic Center Facility -
Brown& Mills, Inc.
(C-050-025)
It is the recommendation of the Assistant City Manager that City Council authorize the Mayor to sign
a professional services agreement, subject to form approval by the City Attorney, with Brown &
Mills, Inc., a specialty testing and inspection services contractor, for an amount not to exceed
$60,000. Such contractor is needed to verify torque tests on bolts, soil compaction, concrete density,
fire proofing, and welds are done correctly.
Resolution - Releasing Abatement Proceedings on Property at 2926 & 2926-1/2 Favretto Avenue
owned by Richard W. & Lou E. Thurman
(A-030-070)
It is the recommendation of the Development Services Department that City Council adopt
Resolution No. 98-117, a resolution of the City Council of the City of Redding releasing the
proceedings of abatement under former Chapter 9.36 of the Redding Municipal Code on certain real
property in the City of Redding located at 2926 & 2926-1/2 Favretto Avenue, previously owned by
Steven R. Rhodes, currently owned by Richard W. and Lou E. Thurman.
Resolution - Releasing Abatement Proceedings on Property at 4504 E. Bonnyview Road, currently
owned by Philip R. Chase
(A-030-070)
It is the recommendation of the Development Services Department that the City Council adopt
Resolution No. 98-118, a resolution of the City Council of the City of Redding releasing the
proceedings of abatement under former Chapter 9.36 of the Redding Municipal Code on certain real
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222
property in the City of Redding located at 4504 E. Bonnyview Road, currently owned by Philip R.
Chase.
Development Services Monthly Activity Report - July 1998
(A-050-122)
It is the recommendation of the Director of Development Services that City Council accept the
Monthly Status Reports through July 1998 for the following work areas:
1. Zoning, Subdivision and General Plan Amendments
2. Building and Population
3. General Plan Update
Recommendation to Rescind Cancellation Notice for Western Contract No. DE-MS65-86WP59048
Western Billing Crediting
(E-120-900)
It is the recommendation of the Electric Utility Department that the City Council authorize the City
Manager or the Electric Utility Director to rescind the six-month Notice of Termination on Bill
Crediting Contract No. DE-MS65-86WP59048. The City Council authorized the issuance of a
Notice of Termination which was sent to Western on March 25, 1998, with a termination date of
October 1, 1998. Since March 25, 1998, Western has been successful in restructuring a purchase
power contract above market rates, reducing power rates to Central Valley Power customers, and
saving the City of Redding approximately $800,000 to $1,000,000 per year after October 1, 1999.
Award of Bid-Bid Schedule No. 3209,Furnishing Electric Line Clearance Services (Tree Trimming)
(B-050-020 & B-050-100)
It is the recommendation of the Public Works Director that Bid Schedule No. 3209, Furnishing
Electric Line Clearance Services in Area 1 and Area 2, be awarded to Renee Godon & Sons, Inc.,
in the amount of$125,670, for Fiscal Year 1998/1999.
Public Benefits. Low-Interest Loan Policy
(E-090-100)
It is the recommendation of Electric Department Director that the City Council authorize issuance
of Request for Proposal to financial institutions to contract with the Electric Department to make
low-interest, energy-efficient loans to commercial customers, thereby reducing the customer's interest
payments through funds from the Public Benefit Program. Staff has allocated $175,000, or 10.85%,
of the Public Benefit Program dollars for this program.
Authorize Funding Agreement with Turtle Bay Museum for Arboretum Perimeter Trail and Kiosk
Plaza Improvements
(P-050-460-700)
It is the recommendation of the Community Services Director that the City Council authorize the
Mayor to execute the funding agreement for the Arboretum Perimeter Trail and Kisok Plaza
Improvements at an estimated cost of$123,000, using remaining funds of a 1987 gift from Mrs. Leah
McConnell which, with interest, has grown to $136,286. It is also recommended that the City
Council authorize staff to utilize the remaining $13,286 in trust funds in a way consistent with the
intent of the original 1987 gift and the current wishes of the McConnell Foundation, including
unforeseen costs associated with the perimeter trail, construction of that part of the trail extension
to Hilltop that serves the Arboretum, or construction of trail realignment on the Arboretum needed
to accommodate the Turtle Bay Pedestrian Bridge approach, with any remaining ultimately being
used for the Turtle Bay Pedestrian Bridge.
Resolution-To Transfer to the Project Account Two Contributions of the General Fund to the Civic 111
Center Project and to Supplementally Appropriate Remaining Funds Available
(B-130-070 & C-050-025)
It is the recommendation of the Director of Administrative Services that the City Council adopt
Resolution No. 98-119, a resolution of the City of Redding approving and adopting the First
Amendment to City Budget Resolution No. 98-92 (1) transferring $800,000 from the General Fund
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to the Development Fund, and (2) appropriating $1,171,663 for the Civic Center Project, bringing
total appropriation of City funds to $17,807,000.
Voting was as follows:
Ayes: Council Members - Anderson, Cibula, Kight, and McGeorge
Noes: Council Members - Kehoe
Absent: Council Members -None
Abstain: Council Members - None
Resolution No. 98-119 is on file in the office of the City Clerk.
Resolution - Approving Amendments to Executive Management Pay-for-Performance Salary Plan
(P-100-320)
It is the recommendation of the Director of Administrative Services that City Council adopt
Resolution No. 98-120, a resolution of the City Council of the City of Redding amending the
executive management pay-for-performance salary plan, effective August 23, 1998, adding two new
classifications in the Public Works Department, Assistant Director of Public Works/City Engineer and
Public Works Manager, and eliminating four classifications, Public Works Operations Manager,
Superintendent-Wastewater, and Transportation Manager in the Public Works Department, and
Police Training Supervisor.
Resolution Accepting Streets - Acceptance of Improvements for White Hawk Estates Subdivision,
Unit 2, Teton Drive West of Buenaventura (S-6-95)
(S-070-230 & S-100-108)
It is the recommendation of the Director of Public Works that City Council adopt Resolution No. 98-
121, a resolution of the City Council of the City of Redding accepting for maintenance and operation
Raindrop Court, Dream Street, Crescent Moon Drive, and Teton Drive to Buenaventura Boulevard
in Unit 2 of the White Hawk Estates Subdivision.
It is also recommended that City Council accept the improvements in White Hawk Estates
Subdivision, Unit 2, as satisfactorily completed and that the City Clerk be instructed to return the
securities to White Hawk Partners.
Resolution - Summary Vacation of a Certain Easement in the Forest Hills Drive Area, 2990 Forest
Hills Drive
(A-010-040)
It is the recommendation of the Director of Public Works that the City Council adopt Resolution No.
98-122, a resolution of the City Council of the City of Redding summarily vacating a portion of a 30-
foot wide easement for street and utility purposes deeded by James B. and Karen Mathewson to the
City of Redding on March 6, 1980, and recorded in Book 1795 of Official Records at Page 348,
Shasta County Records.
Notice of Completion - Bid Schedule No. 3128 (Job Order No. 9006-31), Market Street
Demonstration Block
(B-050-020)
It is the recommendation of the Public Works Director that Bid Schedule No. 3128 (Job No. 9006-
31), awarded to Bobby Martin Construction, be accepted as satisfactorily completed, and the City
Clerk be authorized to file a Notice of Completion. The final contract price was $526,397.16, which
is $409.64 under the City Council authorized amount.
Notice of Completion - Bid Schedule No. 2983 (Job Order No. 9882), Lake Redding Bridge
(B-050-020 & S-070-050-100)
It is the recommendation of the Public Works Director that Bid Schedule No. 2983 (Job No. 9882),
awarded to MCM Construction, Inc., be accepted as satisfactorily completed, and the City Clerk be
authorized to file a Notice of Completion. The final contract price was $7,729,000, which is 5
percent under the City Council authorized amount.
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Resolution - Waiving the Bidding Process and Awarding of Purchase Contract to Biomixer
Corporation for the Clear Creek Wastewater Treatment Plant; and
Resolution - Appropriating Funds for Purchase Contract
(W-010-450 & B-130-070)
It is the recommendation of the Director of Public Works that City Council adopt Resolution No. 98-
123, a resolution of the City Council of the City of Redding authorizing the bypass of the formal
bidding process and the purchase of two Biomixer aeration-mixing and control systems by the
Wastewater Utility to upgrade the Clear Creek Wastewater Treatment Plant, and Resolution No. 98-
124, a resolution of the City of Redding approving and adopting the second amendment to City
Budget Resolution No. 98-92 appropriating $245,760 for an aeration system for the Wastewater
Utility. The Mayor would be authorized to enter into and execute the necessary contract
documentation on behalf of the City of Redding with Biomixer Corporation of Hawthorne, California,
for the purchase of two biomixer aeration-mixing and control systems, a patented single-vendor
purchase, in a total amount not to exceed $235,759.91.
MOTION: Made by Council Member Anderson, seconded by Council Member Cibula, that all the
foregoing items on the Consent Calendar be approved and adopted as recommended, with the
exception of those items approved by a separate vote as indicated above. Voting was as follows:
Ayes: Council Members - Anderson, Cibula, Kight, McGeorge, and Kehoe
Noes: Council Members -None
Absent: Council Members - None
Abstain: Council Members - None
Mayor Kehoe indicated that he voted no on approval of Civic Center Project deductive change orders
and adoption of Resolution No. 98-119, transferring to the Project Account two contributions of the
General Fund to the Civic Center Project and to supplementally appropriate remaining funds
available, in order to be consistent with his past action on Civic Center matters.
Resolution Nos. 98-117, 98-118, 98-119, 98-120, 98-121, 98-122, 98-123, and 98-124, and
Ordinance No. 2221 are on file in the Office of the City Clerk.
CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY JOINT PUBLIC HEARING-
Capital Outlay Funds for the Shasta-Tehama-Trinity Joint Community College District
(R-030-050, R030-145, E-060-625)
The hour of 7:00 p.m. having arrived, the joint public hearing of the Redding City Council and the
Redding Redevelopment Agency was opened to consider the request by Shasta-Tehama-Trinity Joint
Community College District for capital outlay funds.
The following documents are on file in the office of the City Clerk:
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 and Redding
Redevelopment Agency(Agency)dated August 7, 1998, incorporated herein by reference, regarding
the Shasta-Tehama-Trinity Joint Community College District's(College) request for deposited as well
as the commitment of future capital outlay funds for the following activities: (1) upgrade the bleachers
at the football stadium by replacing the wooden seats with aluminum planking; (2) widen the football
field; and (3) remodel a portion of the Physical Education Building. The remodel includes adding
several offices to the building.
Mr. Starman stated that the College has indicated that the improvements will directly benefit both
students and community groups. The total cost of these improvements is estimated to be $486,509.
The College is requesting the use of the pass-through tax increment funds on the basis that the only
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other source of funding for this project is an anticipated $22,000 per year from a celebrity auction
fundraiser. It is anticipated that it will take through fiscal year 2003-2004 to pay off the loan for the
aforementioned improvements.
Mr. Starman explained that before the capital outlay funds can be released or committed for a project,
the City Council and the Agency must determine that (1) the proposed public improvements/facilities
meet the requirements of the agreements and Redevelopment Law; (2) are of primary benefit to the
project areas or the immediate neighborhood in which the project is located; and (3) no other
reasonable means of financing such public improvements are available to the community.
Mr. Starman indicated that the College services students located within the Market Street and Canby-
Hilltop-Cypress Redevelopment Projects, thus the improvements will benefit both project areas. The
improvements are also in compliance with Redevelopment Law and the terms of the property tax
pass-through agreements on file in the Redevelopment Agency's office. Because the monies from
the celebrity auction will only cover a small portion of the project's costs, there is no other reasonable
means of financing the bulk of the improvements.
It is, therefore, the recommendation of staff that the City Council and the Agency find that the
proposed capital projects are consistent with the agreements on file and Redevelopment Law, are of
primary benefit to the project area, and there are no other reasonable means of financing the
improvements.
MOTION: Made by Council Member Anderson, seconded by Council Member Kight, finding that
Shasta-Tehama-Trinity Joint Community College's request for approximately $486,509, in capital
outlay funds for the upgrading of bleachers at the football stadium by replacing the wooden seats with
aluminum planking, widening the football field, and remodeling a portion of the Physical Education
Building meets the requirements of the agreements on file and Redevelopment Law, are of primary
benefit to the project areas or the immediate neighborhood in which the project is located, and no
other reasonable means of financing such public improvements are available to the community. The
Vote: Unanimous Ayes
CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY JOINT PUBLIC HEARING -
Capital Outlay Funds for the Shasta Union High School District
(R-030-050, R-030-145, & E-060-690)
The hour of 7:00 p.m. having arrived, the joint public hearing of the Redding City Council and the
Redding Redevelopment Agency was opened to consider the request by the Shasta Union High
School District for Capital Outlay Funds.
The following documents are on file in the office of the City Clerk:
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 and Redding
Redevelopment Agency(Agency)dated August 7, 1998, incorporated herein by reference, regarding
the Shasta Union High School District's(SUHSD) request for $90,000 in capital outlay funds for the
construction of new bleachers for the track and field area at Enterprise High School. It was noted
that there is only$32,000 available in the Canby-Hilltop-Cypress Redevelopment Project, therefore,
the remaining $58,000 would come from the Market Street Redevelopment Project.
Mr. Starman stated that the bleachers will benefit students in both redevelopment project areas.
Track teams from both Enterprise High School(Canby-Hilltop-Cypress Redevelopment Project) and
Shasta High School (Market Street Project) utilize the track for all home track meets. In addition,
the bleachers will be used by the community for an array of activities. The improvements are also in
compliance with Redevelopment Law and the terms of the property tax pass-through agreement on
file in the Redevelopment Agency's office. James Cerreta, SUHSD's Financial Consultant, has
advised that there are no other reasonable means to fund the project.
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Mr. Starman explained that before the capital outlay funds can be released or committed for a project,
the City Council and the Agency must determine that (1) the proposed public improvements/facilities
meet the requirements of the agreement and Redevelopment Law; (2) is of primary benefit to the
project areas or the immediate neighborhood in which the project is located; and (3) no other
reasonable means of financing such public improvements is available to the community.
It is, therefore, the recommendation of staff that the City Council and the Agency find that the
proposed capital project is consistent with the agreement on file and Redevelopment Law, is of
primary benefit to the project area, and there is no other•reasonable means of financing the
improvements.
In response to Council Member Cibula, Mr. Starman stated that because the field improvements will
be utilized by students from both Shasta Union High School and Enterprise High School, staff is
comfortable that a nexus does exist between the two project areas, thereby allowing the use of capital
outlay funds from the Market Street Project for the proposed project.
MOTION: Made by Council Member Anderson, seconded by Council Member Kight, finding that
Shasta Union High School District's request for $90,000 in capital outlay funds ($32,000 from the
Canby-Hilltop-Cypress Redevelopment Project and $58,000 from the Market Street Redevelopment
Project)for the construction of new bleachers for the track and field area at Enterprise High School
meets the requirements of the agreements on file and Redevelopment Law, is of primary benefit to
the project areas or the immediate neighborhood in which the project is located, and no other
reasonable means of financing such public improvement is available to the community. The Vote:
Unanimous Ayes
PUBLIC HEARING- re Appeal of Use Permit UP-9-98, by Dan Wilson (2705 Park Marina Drive)
(L-010-390)
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing regarding the appeal
of the conditions of approval of Use Permit Application UP-9-98.
The following items are on file in the office of the City Clerk:
Affidavit of Publication -Notice of Public Hearing
Affidavit of Mailing -Notice of Public Hearing
Report to Planning Commission dated May 29, 1998
City Clerk Strohmayer advised that no protests were received.
Development Services Director Swanson provided an overview of the Report to City Council dated
July 27, 1998, incorporated herein by reference, regarding Dan Wilson's request to construct a 4,577-
square-foot dental building at 2705 Park Marina Drive. After approval by the Board of
Administrative Review, the applicant submitted an appeal to the Planning Commission on the basis
that several conditions of approval for the project caused the developer to bear unreasonable costs.
The Commission unanimously denied the appeal, but with modifications to Conditions 15 and 18 of
the approved use permit. The applicant then submitted a letter of appeal requesting that the City
Council reconsider Conditions 14, 15, 17, and 18 of the use permit. Mr. Swanson stated that prior
to this evening's meeting and subsequent to filing the appeal, an agreement was reached that will
accomplish the applicant's and City's objectives.
It is, therefore, the recommendation of staff that the appeal be upheld amending Conditions 14, 15,
and 18, with which the applicant is in full agreement, relative to pedestrian access to the Sacramento
River, signalization of the Locust Street and Park Marina Drive intersection, and bus turnout and
passenger waiting area.
Mayor Kehoe determined that there were no individuals present wishing to speak on the issue and
closed the public hearing.
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MOTION: Made by Council Member McGeorge, seconded by Council Member Anderson, that the
appeal of Use Permit UP-9-98 be upheld, with revised Conditions 14, 15, and 18 as recommended
by staff The Vote: Unanimous Ayes
PUBLIC HEARING-re Rezoning Application RZ-7-98 on Property at 19420 Posey Lane, by James
Graves
(L-010-230)
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing regarding Rezoning
Application RZ-7-98.
The following items are on file in the office of the City Clerk:
Affidavit of Publication - Notice of Public Hearing
Affidavit of Mailing -Notice of Public Hearing
Report to Planning Commission dated July 20, 1998
City Clerk Strohmayer advised that no protests were received.
Development Services Director Swanson provided an overview of the Report to City Council dated
August 3, 1998, incorporated herein by reference, regarding James Graves' request to rezone a
portion of property located at 19420 Posey Lane from "R-1-B20" Single Family Residential District
to "R-1-B10" Single Family Residential District and "OS" Open Space District, currently being
considered with Tentative Subdivision Map S-1-98, Central Park Subdivision, Units 3-5.
It is the recommendation of staff and the Planning Commission that the City Council approve the
rezoning request as requested to "R-1-B10" Single Family Residential District and "OS" Open Space
District, approve the environmental negative declaration, and offer the ordinance for first reading.
Mayor Kehoe determined that there were no individuals present wishing to speak on the issue and
closed the public hearing.
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, that
Council make the following findings regarding Rezoning Application RZ-7-98.
1. Project is compatible with the Redding General Plan;
2. Project will not significantly alter existing land form;
3. Project is compatible with surrounding land use;
4. Project is compatible with the Code of the City of Redding, California; and approve the
Negative Declaration authorized by the Department of Development Services. The Vote:
Unanimous Ayes.
Council Member Anderson offered Ordinance No. 2222 for first reading, 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 (RZ-7-98) to "R-l-B10" Single Family
Residential District and "OS" Open Space District
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, that the
full reading of Ordinance No. 2222 be waived and the City Attorney be instructed to read the full
title. The Vote: Unanimous Ayes
PUBLIC HEARING-re Rezoning Application RZ-1-98 on Property at South Bonnyview Road and
Eastside Road East of State Highway 273, by Bob Youmans and the City of Redding
(L-010-230)
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing regarding Rezoning
Application RZ-1-98.
The following items are on file in the office of the City Clerk:
Affidavit of Publication -Notice of Public Hearing
Affidavit of Mailing - Notice of Public Hearing
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City Clerk Strohmayer advised that no protests were received.
Development Services Director Swanson provided an overview of the Report to City Council dated
August 5, 1998, incorporated herein by reference, regarding Rezoning Application RZ-1-98 by Bob
Youmans and the City of Redding. The rezoning request is the result of the settlement stipulations
of zoning violation litigation on one of the 13 parcels comprising the rezone area. Rezoning to "C-2-
F" Central Commercial District with Site Plan Review Combining District would allow for a variety
of retail commercial uses and would also provide for cohesive design and setbacks when the
properties develop or redevelop. The "C-2-F" classification would be consistent with the General
Plan designation of "Retail Commercial," the future General Plan designation of "General
Commercial," and with existing and surrounding land uses.
It is the recommendation of the Planning Commission and staff that the City Council approve the
environmental negative declaration prepared for the rezoning and approve Rezoning Application RZ-
1-98, rezoning the property from "U" Unclassified District and "U-FP" Unclassified District with
Floodplain Combining District to "C-2-F" Central Commercial District with Site Plan Review
Combining District, and offer the ordinance for first reading.
Mayor Kehoe determined that there were no individuals present wishing to speak on the issue and
closed the public hearing.
MOTION: Made by Council Member McGeorge, seconded by Council Member Anderson, that
Council make the following findings regarding Rezoning Application RZ-1-98:
1. Project is compatible with the Redding General Plan;
2. Project will not significantly alter existing land form;
3. Project is compatible with surrounding land use;
4. Project is compatible with the Code of the City of Redding, California; and approve the
Negative Declaration authorized by the Department of Development Services. The Vote:
Unanimous Ayes.
Council Member McGeorge offered Ordinance No. 2223 for first reading, 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 (RZ-1-98) to "C-2-F" Central
Commercial District with Site Plan Review Combining District.
MOTION: Made by Council Member McGeorge, seconded by Council Member Anderson, that the
full reading of Ordinance No. 2223 be waived and the City Attorney be instructed to read the full
title. The Vote: Unanimous Ayes
PUBLIC HEARING- re Rezoning Application RZ-3-98 on Property Located North of Rancho Road
at the East End of El Verano Street, by Jim Huber
(L-010-230)
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing regarding Rezoning
Application RZ-3-98.
The following items are on file in the office of the City Clerk:
Affidavit of Publication -Notice of Public Hearing
Affidavit of Mailing -Notice of Public Hearing
City Clerk Strohmayer advised that no protests were received.
Development Services Director Swanson provided an overview of the Report to City Council dated
August 3, 1998, incorporated herein by reference, regarding Rezoning Application RZ-3-98 by Jim
Huber. Mr. Swanson noted that the rezoning is required prior to recordation of the final map for La
Rinconada subdivision.
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It is the recommendation of the Planning Commission and staff that the City Council approve the
environmental negative declaration prepared for the rezoning and approve Rezoning Application RZ-
3-98, rezoning 21.5 acres comprising La Rinconada Subdivision from "U" Unclassified District to "R-
1-B15" Single Family Residential District establishing a minimum lot size of 15,000 square feet. This
minimum lot size would meet the intent of the General Plan designation of"Residential, 2.0 units per
acre," and would be consistent with the lot sizes approved with La Rinconada Subdivision. If the
Council concurs, the attached ordinance is offered for first reading.
Mayor Kehoe determined that there were no individuals present wishing to speak on the issue and
closed the public hearing.
MOTION: Made by Council Member Anderson, seconded by Council Member Kight, that Council
make the following findings regarding Rezoning Application RZ-3-98:
1. Project is compatible with the Redding General Plan;
2. Project will not significantly alter existing land form;
3. Project is compatible with surrounding land use;
4. Project is compatible with the Code of the City of Redding, California; and approve the
Negative Declaration authorized by the Department of Development Services. The Vote:
Unanimous Ayes.
Council Member Anderson offered Ordinance No. 2224 for first reading, 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 o certain real property in the City of Redding (RZ-3-98) to "R-1-B 15" Single Family
Residential District.
MOTION: Made by Council Member Anderson, seconded by Council Member Kight, that the full
reading of Ordinance No. 2224 be waived and the City Attorney be instructed to read the full title.
The Vote: Unanimous Ayes
PUBLIC HEARING- re Rezoning Application RZ-15-97 on Property Located at 3375 Goodwater
Avenue, by Lyle Tullis
(L-010-230)
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing regarding Rezoning
Application RZ-15-97.
The following items are on file in the office of the City Clerk:
Affidavit of Publication -Notice of Public Hearing
Affidavit of Mailing -Notice of Public Hearing
City Clerk Strohmayer advised that no protests were received.
Development Services Director Swanson provided an overview of the Report to City Council dated
August 7, 1998, incorporated herein by reference, regarding Rezoning Application RZ-15-97 by Lyle
Tullis. The property comprises 17.75 acres of a pending Tentative Subdivision Map Application S-9-
97, Wimbledon Estates. In accordance with City Council policy, the rezoning is required prior to
processing the tentative map.
It is the recommendation of the Planning Commission and staff that the City Council approve the
environmental negative declaration prepared for the rezoning and approve Rezoning Application RZ-
15-97, rezoning the property from "U" Unclassified District to "R-1-B20" Single Family Residential
District and establishing a minimum lot size of 20,000 square feet. Changing the zoning to "R-1-B20"
would meet the intent of the current General Plan designation of"Residential, 2.0 units per acre," and
would be consistent with the proposed lot sizes of pending Wimbledon Estates Subdivision. If the
Council concurs, the attached ordinance is offered for first reading.
Leonard Meyer, 3296 Inverness Drive, expressed concern regarding whether the area being rezoned
would receive public water and sewer, and if current residents would be forced to participate in the
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development of infrastructure, inasmuch as they are currently on wells and septic systems. He also
related concern about the lack of ingress and egress in the area, the effect on wildlife and greenbelt
areas, and whether residents would be required at their expense to mitigate drainage problems.
Mr. Swanson advised that the issues raised would be more properly the subject of the tentative map,
and that Mr. Meyer would be notified of the date for consideration by the Planning Commission. He
clarified that the purpose of tonight's action was to establish the zoning and minimum lot size. Mr.
Swanson noted that the applicant would be provided City water and sewer, but he opined this would
not affect the neighboring properties. With regard to access, Mr. Swanson explained that there is
only access from Wimbledon northbound into the subdivision, and two substreets will connect future
development, one to the north and one to the west, assuming the development is approved.
Commenting on water drainage, Mr. Swanson stated that the planned storm drain system would
mitigate areas of concern, and he expressed no knowledge of any areas that would fall under the
protective wet land provisions.
Mayor Kehoe determined that there were no additional individuals present wishing to speak on the
issue and closed the public hearing.
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, that
Council make the following findings regarding Rezoning Application RZ-15-97:
1. Project is compatible with the Redding General Plan;
2. Project will not significantly alter existing land form;
3. Project is compatible with surrounding land use;
4. Project is compatible with the Code of the City of Redding, California; and approve the
Negative Declaration authorized by the Department of Development Services. The Vote:
Unanimous Ayes
Council Member Anderson offered Ordinance No. 2225 for first reading, 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(RZ-15-97) to"R-1-B20" Single Family
Residential District.
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, that the
full reading of Ordinance No. 2225 be waived and the City Attorney be instructed to read the full
title. The Vote: Unanimous Ayes
Mayor Kehoe asked that Mr. Meyer be informed as the process moves forward.
ECONOMIC DEVELOPMENT CORPORATION -Funding Agreement for Industrial Recruitment
and Enterprise Zone Management for 1998-1999
(B-130-030-045)
Assistant City Manager Perry provided an overview of the Report to City Council related to the
funding agreement with the Economic Development Corporation for Industrial Recruitment and
Enterprise Zone Management for 1998-99. In the past, the City of Redding has provided funding on
a pooled basis with Shasta County to operate the Economic Development Corporation of Shasta
County, the purpose of which has been to attract industry and new jobs to Shasta County,
complemented by efforts of Redding and Shasta Lake to encourage job retention, local business
expansion, and to attract or retain other businesses in addition to industry. Early in 1994, the
Economic Development Corporation refocused its efforts in a three-year trial program to principally
concentrate on industrial recruitment, and the change was reflected in the 1994-95 Funding111
Agreement which increased the funding from $80,000 to $126,000. For 1998-99, the Economic
Development Corporation is requesting the same amount of funds it has received over the last four
years in the amount of$126,000.
It is the recommendation of the Assistant City Manager that the Funding Agreement be approved and
that the Economic Development Corporation be requested to fully report its progress on the Shasta
2001 Goals.
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Mr. Jim Zauer, President of the Economic Development Corporation of Shasta County, thanked City
Council for considering EDC's funding request. He noted that continued funding will allow EDC to
enhance its economic development activities.
MOTION: Made by Council Member Kight, seconded by Council Member Anderson, to approve
the Funding Agreement with the Economic Development Corporation in the amount of$126,000,
effective July 1, 1998, through June 30, 1999. The Vote: Unanimous Ayes
RESOLUTION - CDBG funding agreement with Mercy Foundation North
(G-100-030-043)
Deputy City Manager Starman provided an overview of the Report to City Council relating to the
1998 Community Development Block Grant Program providing $1 10,070 in funds to be used by
Mercy Foundation North for off-site preparations to the future site of the Golden Umbrella, which
provides senior services to the elderly and disabled City of Redding residents.
It is the recommendation of staff that the City Council adopt the resolution authorizing the City
Manager to execute the agreement on behalf of the City.
Vi Klaseen, 2295 Oak Ridge Drive, Redding, voiced concerns with the rural site planned for the
Golden Umbrella. She read from the Community Development Design Element of the new general
plan which described a mixed zoning area and its benefits: ease of transit and establishing pleasant
and attractive linked pedestrian-vehicle areas. Mrs. Klaseen stated that new designs develop compact
urban land use patterns which focus on locating residential, employment, and shopping areas close
to one another and allow mixed-use development patterns. She said she is not objecting to the funds
being approved, rather she feels the site is wrong for this facility. She urged that if revitalization of
downtown is desired, the project should not be moved to a rural location. Mrs. Klaseen read a letter
from Kelly and Barbara Pierce to the Golden Umbrella and to the Record Searchlight stating that such
a service agency belongs near the core of the city to allow for ease of transportation to better serve
the elderly.
Mr. Starman stated that the same questions were raised when the project was considered by the
committee; however, the committee deferred these issues to the project planners.
Mike Burelli, the Regional Vice President for Planning and Business Development from Catholic
HealthCare West Northstate, a regional health system representing hospitals in Red Bluff, Redding,
and Mt. Shasta, and a corporate sponsor for the Golden Umbrella (GU) and the Shasta Senior
Nutrition Program (SSNP), explained that they have been planning this project with the Boards of
GU and SSNP, who have indorsed the principle of co-locating these facilities. The decision to co-
locate these facilities has complicated the planning and site selection, and because they will be
occupying 4,500 square feet of office space, they need a minimum of seven acres. They are focusing
on a seven-acre parcel site near Simpson College. Mr. Burelli reported that they surveyed clients at
the Senior Nutrition Program, and of the approximate 110 who are seen on a daily basis, 85 or more
said they would not mind traveling a little farther to the new facility. Golden Umbrella's handicapped
clients will be provided transportation to the site.
Carol Treadway, Executive Director of the Golden Umbrella, echoed Mr. Burelli's comments, and
said that they are overflowing now and unable to provide the services needed by seniors due to
building constraints. She indicated that Golden Umbrella and their clients feel that the property on
Highway 299 is a good location for the kind of building and services that they need.
MOTION: Made by Council Member Kight, seconded by Council Member Anderson, that
Resolution No. 98-125 be adopted, a resolution of the City Council of the City of Redding approving
the agreement in the amount of$110,070, between the City of Redding and Mercy Foundation North
and authorizing the City Manager to sign same, effective from August 1, 1998, through July 31,
1999.
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Voting was as follows:
Ayes: Council Members - Anderson, Cibula, Kight, and McGeorge
Noes: Council Members - Kehoe
Absent: Council Members -None
Abstain: Council Members -None
Resolution No. 98-125 is on file in the office of the City Clerk.
Mayor Kehoe indicated that he voted no because when this item first came before the Council, he was
not in favor of the priorities established by the CDBG advisory committee and he would like to be
consistent in his voting.
DEVELOPMENT IMPACT FEE CREDITS - City Council Policy
(F-205-600)
Development Services Director Swanson provided an overview of the Report to City Council
enabling adoption of a development fee credit policy. Questions to be addressed include the policy
for granting credit to buildings which replace those which have been destroyed or removed by their
owners, the transferability of fee credits from one property to another, and the termination period for
credits after a period of non-use.
It is recommended that the City Council direct staff to prepare an ordinance that would extend the
current fee credit(or exemption) policy to include Park Fund fees; provide identical language, where
possible, for fee credit that is applicable to all impact fees; prohibit the transfer of credits from one
parcel to another; establish a five-year period following demolition or cessation of use after which all
fee credits would expire; develop a single fee credit provision which would apply to all impact fees;
and that all credit provisions be made retroactive to the date the interim credit policy was adopted
on June 16, 1998.
Council Member Anderson indicated that there should be one policy which would apply to all fees,
that no transfer of fees should be allowed, and that a time limit should be agreed upon. He
commented that houses built 40 years ago probably paid virtually no fees, and if given full credit at
today's fee rate, it would not be fair and equitable. He suggested referring the issue to a subsequent
Council meeting to discuss establishing a fee schedule dependent upon the age of a building. Mr.
Anderson stated that if an older home were destroyed by fire, fees should be paid because none were
paid when the house was built. He further remarked that to waive fees for a landlord who buys a
dilapidated property would not be fair.
While Mayor Kehoe concurred with levying fees for a commercial undertaking, he did not support
imposing impact fees for reconstruction due to fire, as it does not impact the infrastructure. He
emphasized the inequity of imposing fees on someone who loses a home through misfortune.
Council Member Cibula agreed with Mayor Kehoe and suggested incorporating his proposal for a
fire and natural disaster exemption.
Council Member McGeorge concurred that "impact fees" should not apply to a natural disaster since
it does not impact infrastructure by rebuilding.
Mr. Stewart Altemus addressed City Council on behalf of Don and Janice McElwain, who are in the
process of developing a smog shop on North Market Street. The McElwain's purchased this
property for development under the previous system which gave them development credits for
demolition of the existing structure. Mr. Altemus requested confirmation of whether credit would
be received for construction of a new structure. He emphasized that it is only economically viable
for developers to build by taking advantage of development credits, and he inquired whether Council
wants very old structures to remain or new structures which bring in jobs, income, and people to
replace them. Mr. Altemus stated the McElwain's were promised these credits, but are now being
told by the City that they will not receive them. He requested that serious consideration be given to
"grandfathering" in those people who have existing projects.
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Council Member Cibula favored the "grandfathering" idea and suggested making the changes
effective in one year.
Todd Milanese, P.O. Box 566, Grass Valley, commented that he owns property in the Parkview
neighborhood and his project would definitely be impacted by a change in the fee credits. He asserted
that when he purchased the property, he was under the impression that fee credits would be allowed.
Noting that he has torn down the building and is ready to improve the area, Mr. Milanese said he
would be penalized.
MOTION: Made by Council Member Anderson, seconded by Council Member Cibula, directing
staff to prepare an ordinance for City Council's consideration, implementing Development Impact Fee
Credits for all impact fees related to the age of a removed structure; not allow transfer of fee credits
from one property to another; establish a five-year period following demolition or cessation of use
after which all fee credits would expire; allow all building permit applications processed within the
next six months to continue under the present ordinance provisions; and allow full credit for
reconstruction due to natural disaster or fire.
Voting was as follows:
Ayes: Council Members - Anderson, Cibula, McGeorge, and Kehoe
Noes: Council Members - Kight
Absent: Council Members - None
Abstain: Council Members - None
RESOLUTION - Proposed Increases in Recreation Fees
(F-205-600 & R-006-650)
Community Services Director Gorman provided an overview of the Report to City Council dated
August 6, 1998. He stated that during previous discussion it was noted that the minimum wage
increase was implemented March 1, 1998, from $5.15 to $5.75, and since the proposed fee increases
will impact registration fees for some of the programs by as much as 25%, Council requested
additional information regarding any non-contractual youth program that exceeds 8%. Staff has
identified five programs that are non-contractual with proposed increases exceeding 8%, in the 17%
to 25% range. Staff feels that the increases are justified because this year's minimum wage increase
reflects a 12% increase, while personnel costs since the last fee adjustment in 1994 have risen 35%.
It is the recommendation of staff that Council adopt a resolution approving the proposed fee
increases.
Mayor Kehoe stated that upon observing the figures in Charts A and B, swimming lesson comparison
rates, he believes the data provides an argument in favor of keeping the fees stable rather than
increasing them.
MOTION: Made by Council Member McGeorge, seconded by Council Member Kight, that
Resolution No. 98-126 be adopted, a resolution of the City Council of the City of Redding amending
its schedule of fees and service charges by increasing the fees for certain Youth Recreation Programs.
Voting was as follows:
Ayes: Council Members - Anderson, Kight, and McGeorge
Noes: Council Members - Kehoe and Cibula
Absent: Council Members - None
Abstain: Council Members -None
Resolution No. 98-126 is on file in the office of the City Clerk.
ORDINANCE - Enacting Cost Recovery, Towing of Certain Vehicles by the Police Department
(F-205-600 & P-150-150)
Police Captain Blankenship provided an overview of the Report to City Council dated July 29, 1998.
He stated that the California Vehicle Code, Section 22850.5, authorizes city governments to impose
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a recovery fee equal to its administrative costs relating to the removal, impounding, storing, and
releasing of impounded vehicles. A study indicated that the current conservative and reasonable
estimate of the Police Department's cost for processing an impounded vehicle is $96. There are
approximately 2,993 drivers in the City of Redding with suspended or revoked licenses, and an
additional 3,500 who are unlicensed or whose licenses have expired, who account for approximately
10 percent of the traffic collisions within the City. Imposing a cost recovery fee will assist in
removing illegal drivers from the roadway and aid in reducing traffic collisions.
It is staff's recommendation that Council enact an ordinance imposing a fee to cover the
administrative costs relating to the impounding of vehicles towed due to drivers being unlicensed or
having a suspended or revoked license.
Mr. Wingate proposed a change in the language in Section One of the Ordinance from "impound fees
levied by the city pursuant to vehicle impound," to "impound fees levied by the city and authorized
by the vehicle code with respect to vehicle impounds..."
Council Member Anderson offered Ordinance No. 2226 for first reading, an ordinance of the City
Council of the City of Redding imposing a fee to cover the administrative costs relating to the
removal, impound, storage, and release of specified impounded vehicles.
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, that the
full reading of Ordinance No. 2226 be waived and the City Attorney be instructed to read the full
title. The Vote: Unanimous Ayes
Council Member Cibula thanked Police Chief Blankenship and the Police Department for their hard
work organizing National Night Out.
ADVANCEMENT OF FUNDS - Debt Service Payment in the Churn Creek Road Extension #2
Assessment District No. 1990-5111
(A-170-120-101)
Director of Administrative Services Bachman provided an overview of the Report to City Council
dated August 13, 1998. He stated that bonds with a total principal of$269,561 were sold to fund
the acquisition of Churn Creek Road Extension No. 2 Assessment District in 1991; that the remaining
debt service payments as of August 5, 1998, are $195,000 in principal and $77,591 in interest; and
that an interest and principal payment of$22,619 is due to be transferred to the Trustee at the end
of August for the September 2 payment. Mr. Bachman advised that the district's available cash totals
$2,310 and there is a shortfall of$20,309, but since the bonds are limited obligation bonds, the City
is not obligated to advance the funds needed by the district to cover debt service. If the City does
not advance the funds, the bonds will be in default, and the source of payment to the bond holders
must then come from foreclosure sale proceeds.
It is the recommendation of staff that the City Council decline to advance funds for the September
2 debt service payment for the Churn Creek Road Extension No. 2 Assessment District No. 1990-5.
City Attorney Wingate stated that BHS Investments is prepared to close escrow for the sale of one
of the parcels sometime during the next ten days. He noted that funds will be available to make the
payment on September 2 and the assessment district will not go into default.
Council Member Cibula inquired why this happened and how it can be prevented from happening in
the future. Mr. Bachman explained that the City has changed its policy to require a value-to-lien ratio
of 6:1, and in some cases as low as 4:1 with Council's approval. He believes the current policy will
potentially protect the City. Mr. Bachman stated there was likely to not be adequate value to cover
these bonds and there would probably be an ultimate loss to the bond holders in the Churn Creek
district.
Mr. Wingate said with respect to Churn Creek, there was substantial erosion in the value of the
subdivision project, and after the formation of the assessment district, the floodplain designation
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changed for two of the large parcels which substantially reduced the value of the properties. Mr.
Wingate added that the partners of BHS Investments, Clair A. Hill, Alan T. Hill, Malcolm Hill, and
David C. Stathem, and owners of the property, were aware of tonight's proceeding, however, elected
not to attend.
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, to
advance no further funds to Churn Creek Road Extension No. 2 Assessment District. The Vote:
Unanimous Ayes
ADVANCEMENT OF FUNDS - Tierra Oaks Assessment District No. 1993-1
(A-170-050-750)
Director of Administrative Services Bachman provided an overview of Report to City Council dated
August 13, 1998. He stated that an interest and principal payment of$246,278 is due at the end of
this month for the September 2 payment on bonds sold to fund the acquisition of the Tierra Oaks
Assessment District in 1994. The bond reserve was initially funded at $305,868, while the remaining
debt service payments as of August 6 are $3,585,000 in principal and $2,471,510 in interest. He
further noted that the district's available cash totals only $221,850, leaving a shortfall of$24,428.
Mr. Bachman concluded that since the bonds are limited obligation bonds, the City is not obligated
to advance the funds needed to cover debt service, and should the City not advance funds, the bonds
will be in default and the source of payment to bond holders must come from foreclosure sale
proceeds.
It is the recommendation of staff that the City Council decline advancing funds for the September 2
debt service payment for Tierra Oaks Assessment District No. 1993-1.
Mr. Bachman outlined a letter from David Lonich, CEO of Blackpointe Homes, which mentions a
proposal to bring forward a refunding of this assessment district and bond, requesting that Council
deviate from its policy and allow the refunding to go forward with a value-to-lien ratio of
approximately 2.1. Mr. Bachman clarified that staff does not feel it would be prudent for the City
to advance more funds at this time.
City Attorney Wingate said the ratio of equity to debt on this project was always approximately 2:1.
He noted that officials at Stone& Youngberg, underwriters of the original bond issue, advised him
that they are prepared to underwrite the refinancing of the bond assessments, including a portion of
the bond delinquencies. He noted that this is not a project that is in jeopardy of going upside down
this year. He expressed his belief that there would not be an ultimate loss to the bond holders should
foreclosure go forward because the value of the property would be enough to pay off the assessment.
David Lonich, 6727 Eastmont Drive, Redding, managing member of the ownership entity of Tierra
Oaks, stated that Blackpointe Homes did not ask the City to advance the funds. He explained that
Blackpointe Homes inherited these bonds, and it was always clear that until the project was started,
cash flow would not be generated to meet the$3 million debt on the property. Mr. Lonich noted that
they have a pending loan commitment which would facilitate development of the first phase of
construction. In conjunction with that loan is an advance of sufficient monies to pay any debt on the
bonds, but it needs to be coupled with debt inherited on the project. Blackpointe Homes has an
investment banker who is prepared to pay off the bonds, and clear all delinquencies so the project can
move forward. He stated that a new bond on the property will not be a monetary risk to the City.
He reiterated that Blackpointe Homes is not asking the City to advance the $25,000, they are asking
the City for the opportunity to refund the existing bonds.
Ron Mintz, 50 California Street, San Francisco, Director of Research for Stone and Youngberg,
noted Stone and Youngberg's willingness to underwrite bonds at a lower evaluation standard than
their norm, subject to review of the appraisal. If there is a default on these bonds, which is very
possible on September 2, he said many of the investors would be in touch with and tying up City staff
for information. He highly recommended that the City waive the 6:1 and 4:1 lien ratio, noting that
a bankruptcy would stay the entire foreclosure process until resolved. At current market values, with
the current amount of debt outstanding as well as accrued penalties of interest, there still appears to
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be value in the property. If the City chooses to allow the bonds to go into default, Mr. Mintz opined
that it was incumbent upon the City to expediently announce its intention to the market.
Mr. Wingate noted that the City might want to consider advancing the funds to avoid problems with
existing bond holders, although it is not a requirement to do so. He pointed out that the official
statement issued in 1994 indicates that the parcels currently in default had a 2:1 lien ratio. If staff
were to recommend refunding the assessment district, a portion of the funding would include a buy-
down of about one-half of the existing delinquencies, adding to the debt on these parcels.
Council Member Anderson indicated a willingness to talk about refinancing the bonds, although he
would not be willing to advance further funds. He clarified that such would be his position on
advancing funds for any assessment district, except for special circumstances.
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, to
advance no further funds for the Tierra Oaks Assessment District at the present time. The Vote:
Unanimous Ayes
Mr. Wingate asserted that the only real issue is whether Council is willing to go from a 4:1 lien ratio
down to a 2:1 lien ratio, and allow the developer and underwriter, with the assistance of the City's
bond counsel, to put a package together.
In response to Mr. Cibula, Mr. Wingate indicated that there was no reason for Council to act tonight,
and it may prove beneficial to provide a more thorough staff report and bring the subject back at the
next meeting.
Mr. Lonich offered to make the $25,000 debt payment to avoid a default, with the expectation that
a decision about the refinancing will be made at the September 2 meeting.
Mayor Kehoe stated that it is the consensus of Council to direct staff to prepare a supplemental report
regarding refinancing the Tierra Oaks Assessment District at the September 1 Council Meeting.
ORAL COMMUNICATION
L-010-500
Todd Milanese, P.O. Box 566, Grass Valley, property owner of 845 Fell Street, noted that there was
a decision made at the last Council meeting to adopt an urgency ordinance regarding R3 zoning.
Council Members were told no one would be impacted; however,Mr. Milanese stated that his project
to build an 18-unit apartment building has been denied and reduced to four units. Mr. Milanese
contended that, prior to purchasing the property, he went to the Planning and Building departments
and pulled all necessary documents regarding what the City of Redding requires.
Assistant City Manager Perry stated that Mr. Milanese did not get proper notice that staff would be
submitting a report to Council, and Mr. Milanese would like and should have an opportunity to
appear before Council on this matter.
Mr. Wingate concurred with Mr. Perry's comments.
Mayor Kehoe stated that staff would notify Mr. Milanese of future proceedings regarding this matter.
CLOSED SESSION
(L-100)
Mayor Kehoe stated that pursuant to California Government Code Section 54956.9(b), Council will
adjourn to closed session for a conference with legal council to discuss anticipated litigation in two
cases.
At the hour of 9:38 p.m., Mayor Kehoe adjourned the regular meeting to closed session.
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At the hour of 10:00 p.m., Mayor Kehoe reconvened the meeting to regular session.
No action was taken.
ADJOURNMENT
There being no further business, at the hour of 10:00 p.m., Mayor Kehoe declared the
meeting adjourned.
APPROVED
ayor
ATTEST:
i
City Clerk
08/18/98