HomeMy WebLinkAboutMinutes - City Council - 1998-12-01 311
City Council, Regular Meeting
Council Chambers
1313 California Street
Redding, California
December 1, 1998, 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Ms. Fran Jenkins.
The Invocation was offered by Dr. David Nicholas of the Shasta Bible College..
The meeting was called to order at 7:00 p.m. by Mayor Kehoe with the following Council
Members present: Anderson, Cibula, Kight, McGeorge, and Kehoe.
Also present were City Manager Warren, Assistant City Manager Perry, Deputy City
Manager Starman, City Attorney Wingate, Director of Public Works August, Director of
Development Services Swanson, Director of Electric Utility Feider, City Treasurer Linville,
Support Services Director Kersten, Finance Officer Strong, Administrative Services Director
Bachman, Personnel Analyst Neimer, Transportation Coordinator Duryee, Director of
Community Services Gorman, Economic Development Asset Manager Hiller, Assistant City
Attorney Tranberg, Housing Specialist Warren, Associate Electrical Engineer Ahern, 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 November 17, 1998
Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 10, check numbers 263581 through
263940 inclusive, in the amount of 1,558,974.12, for the period November 17 through
November 30, 1998, be approved and paid, and Payroll Register No. 10, check numbers
455769 through 456151 inclusive, and electronic deposit transaction numbers 55263 through
55752, in the amount of 1,407,036.52, for the period November 1 through November 14,
1998, be approved.
TOTAL: $2,966,010.64
Treasurer's Report - October 1998
(A-050-100-600)
Total Treasurer's Accountability - $96,700,297.75
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities - $157,301,649.91
ACR133 and Cash Reconciliation Report - October 1998
(F-205-095-650)
It is the recommendation of the Deputy City Manager that the ACR133 Report and the Proof
of Cash Reconciliation for October 1998 be accepted.
ORDINANCE NO. 2235 - re Conflict of Interest for Designated Positions
(F-010-150)
It is recommended that Ordinance No. 2235 be adopted, an ordinance of the City Council of
the City of Redding amending Appendix A to Redding Municipal Code Chapter 2.90 entitled
Conflict of Interest for Designated Positions of the City.
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Property Status Report
(C-070)
It is the recommendation of the Assistant City Manager that City Council accept the Property
Status Report as of November 19, 1998, which includes the following: (1) Surplus City
Property; (2)Leases/Renewal of Leases of City Land; (3) Offers to sell land to the City; and
(4) City-initiated purchases of land.
Approval of Proposed Amendments to the SHASTEC Project Formation Agreement;
Statement of Commonalities
(R-03 0-200)
It is the recommendation of the Deputy City Manager that City Council approve proposed
amendments to the SHASTEC Project Formation Agreement, which were approved by the
Redding Redevelopment Agency on November 16, 1998, and authorize the Mayor to sign the
document on the City's behalf and endorse the Statement of Commonalities.
Offer from John Stevens Regarding Property Adjacent to and South of the Municipal Airport
(C-070-010)
It is the recommendation of the Assistant City Manager that the City express interest in
purchasing 3.4 acres abutting City-owned property on Airport Road for $50,000, offered by
John Stevens, for airport and road widening purposes, subject to the following:
1. Obtaining an FAA grant to pay for the acquisition.
2. Determining the land is free and clear of liens.
3. Any easements are subject to approval by the City.
4. City approval of a Phase I study.
5. Obtaining the necessary General Plan and environmental determination.
6. The purchase price being the lessor of$50,000 or the fair market appraisal as
done by an MAI appraiser.
Solid Waste Survey
(S-020/S-020-500)
It is the recommendation of the Assistant City Manager that City Council accept the 1998
Solid Waste Survey results, incorporated herein by reference, performed to measure customer
satisfaction and evaluate services.
Award of Bid - Bid Schedule No. 3231 (Refuse Truck, Automated Side-loader, to Include
Closed-Circuit Television System)
(B-050-100/S-020-100)
It is the recommendation of the Assistant City Manager that Bid Schedule No. 3231,
automated side-loader refuse truck with closed-circuit television system, be awarded to
Allstate Volvo& GMC of Redding, in the amount of$328,950.76 for two trucks, provided
by the 1998-99 Rolling Stock Fund. The purchase price includes the options of a universal
grabber arm, necessary should the City use waste cans of varying size, and a load-in-gear
hydraulic system, which would result in reduced wear and tear on the transmission.
Award of Bid - Bid Schedule No. 3228 (Twelve Miscellaneous Trucks and One Sedan)
(B-050-100)
It is the recommendation of the Director of Support Services that Bid Schedule No. 3228,
twelve miscellaneous trucks and one sedan, be awarded to Crown Motors (twelve vehicles)
and S&C Ford (one vehicle), in the amount of$264,636.85.
RESOLUTION - Releasing Abatement Proceedings on Property at 703 Leland Court,
Currently Owned by Greg Berglund
(A-030-070)
It is the recommendation of the Development Services Director that City Council adopt
Resolution No. 98-166, a resolution of the City Council of the City of Redding releasing
abatement proceedings on property located at 703 Leland Court. The proceeding was
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initiated on August 19, 1997; subsequently, the public nuisance has been abated by the current
owner, Greg Berglund, through the demolition and removal of structures.
Central Valley Project(CVP)Power Facilities O&M Funding for Fiscal Year 1999 and 2000
(E-120-900)
It is the recommendation of the Electric Utility Director that the City Manager be authorized
to notify Western Area Power Administration of Redding's commitment to participate in the
O&M Funding Program Pursuant to Contract 96-SNR-001100, Fiscal Years 1999 and 2000,
up to the maximum amounts of$50,000 and $100,000 respectively, with final allocations to
be later determined based upon the number of CVP customers that commit to participation
in the program. Work items to be completed under the plans are:
1. Trash rake installation at Keswick Power Plant
2. Cleaning of the Clear Creek Tunnel at Judge Francis Carr Power Plant
3. Rapid return to Service Contingency Plan
RESOLUTION - re Summary Vacation of a Portion of a 20-Foot-Wide.Pipeline Easement
in Highland Oaks Subdivision, Unit 1 (A-10-98)
(A-010-040)
It is the recommendation of the Public Works Director that Resolution No. 98-167 be
adopted, a resolution of the City Council of the City of Redding summarily vacating that
portion of a 20-foot pipeline easement for force-main purposes located along the west
boundary of lots 15 through 23 of Unit l of the Highland Oaks Subdivision. The easement
was used for a sewer force main until Clover Creek sewer was installed and has been
abandoned in place. Now that all sewer lines flow down to the Stillwater Treatment plant by
gravity, the force main easement is no longer necessary.
Contract Amendment to CH2M Hill's Consulting Contract No. 3624 for the Westside Sewer
Interceptor Project
(W-020-610)
It is the recommendation of the Public Works Director that the City Council approve adding
a modified scope of work to existing Contract No. 3624 with CH2M Hill for the Westside
Sewer Interceptor Project, at a cost of$51,401, for a new contract total of$200,203, and
authorize the Mayor to sign an amendment to the existing contract. Current preliminary
findings of the$6 million enhancement optimization to the interceptor from Cypress Avenue
to Nicolet Lane indicate that flows have increased significantly since 1993. Subsequent
updates will be brought before the City Council.
RESOLUTION - re Approval of Bikeway Plan Authorization to Forward to the Regional
Transportation Planning Agency (RTPA)
(T-100-050)
It is the recommendation of the Public Works Director that the City Council adopt Resolution
No. 98-168, a resolution of the City Council of the City of Redding adopting a bikeway plan
for the City of Redding. The plan will be submitted to the RTPA for a finding of
conformance with the Regional Transportation Plan. Upon receipt of a favorable action by
the RTPA, the plan would be forwarded to Cal-Trans for their review and acceptance for
conformance to the requirements outlined in the Bicycle Transportation Act.
MOTION: Made by Council Member Anderson, seconded by Council Member Kight, that
all the foregoing items on the Consent Calendar be approved and adopted as recommended.
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
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Resolution Nos. 98-166, 98-167, and 98-168, and Ordinance No. 2235 are on file in the office
of the City Clerk.
PUBLIC HEARING- Acceptance of Proposal for Energy Retrofit of the Convention Center
(C-050-050)
The hour of 7:00 p.m. having arrived, Mayor Kehoe opened the public hearing re acceptance
of a proposal for an energy retrofit of the Convention Center. 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 written protests were received.
Community Services Director Gorman provided an overview of the Report to City Council
dated November 25, 1998, incorporated herein by reference, regarding the proposal for an
energy retrofit of the Convention Center. He indicated the building has electric bills of
approximately $125,000 per year, gas bills of approximately $16,000 per year, and excessive
operating and maintenance costs. The Convention Center enterprise fund is currently in
deficit, and current expectations are that it will be years before an expenditure of the size
necessary for an energy systems retrofit can be afforded. A consultant was hired to perform
an energy audit of the building, and it was determined that the facility is a good candidate for
a retrofit which could be financed through energy and operational savings.
Aircon Energy was selected for consideration after distribution of a Request for Proposal
attracted three responses from energy service contracting companies. Aircon's proposal lists
replacements of lighting, control/automation systems, air conditioning, and heating systems,
for a total cost of$516,737, including project management and bonding, and guarantee and
monitoring/verification fees of$31,320. Energy savings are estimated at $57,000 per year,
and operations and maintenance savings are estimated at $14,000 per year, and the 15-year
financial anaylsis shows an annual debt service of$55,498. An alternative option for a 15-
year, self-funded, non-guarantee energy system retrofit is estimated at an annual debt service
of$52,326.
It is the recommendation of the Community Services Director that City Council make the
necessary findings pursuant to California Government Code Section 4217.12, that the cost
to retrofit the Convention Center is less than the cost to citizens if the retrofit is not
accomplished, and authorize staff to negotiate a contract with Aircon Energy for a 15-year,
self-funded, guaranteed energy system retrofit of the Convention Center with a provision for
termination of the guarantee when and if the project appears to be succeeding.
City Manager Warren pointed out that the Convention Center is expected to balance its
budget within the next year. He set forth that it is not a question of whether the City should
consider the proposed retrofit but how much money will be saved.
In response to Council Member Cibula, Mr. Gorman explained that an in-house retrofit was
not considered because staff believes a guarantee is necessary, and that the City would not
be able to afford the retrofit should the energy savings not be achieved. He stated that if the
project appears to be succeeding, the guarantee could be discontinued. If after one year the
guarantee is terminated, the City would lose either the $32,000 in guarantee fees or a portion
of it, and the first year's monitoring and verification fee of approximately $9,900, which he
opined is a small amount to safeguard against project failure.
In response to Council Member Anderson's concerns regarding provisions of the guarantee,
Mr. Gorman deferred to Mr. Timothy Hayes, Vice President of Aircon Energy. Mr. Hayes
noted that the monitoring and verification fee is basically a labor contract, and the guarantee
fee is used to purchase monitoring and verification equipment. The annual contract is for
labor to ensure the equipment is being operated correctly, the hours of operation for the
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equipment matches the operating schedule, and the equipment is properly maintained and
operating properly. He stated that savings are determined based on historical use, monitoring
and comparing the number of hours energy is used.
In response to Mayor Kehoe's inquiry regarding reduction in energy savings in year six, Mr.
Hayes explained it was anticipated the electrical rates at the end of year five would be reduced
by 23%; therefore, the savings were discounted by 23 percent. With regard to maintenance
savings, items that are replaced will begin to need attention after approximately five years.
Robert Gayle, French Gulch, asked how long the repairs would affect operation of the
Convention Center, and how long the new systems will last.
Mr. Hayes stated the life expectancy of the lighting system is 10 to 15 years and the chiller
and automated systems is 25 to 30 years. He predicted there would be no impact on the
operation of the Convention Center.
In response to Council Member Cibula, Mr. Hayes affirmed that Aircon Energy is comfortable
the City will meet or exceed the calculated savings.
Mayor Kehoe determined there was no one else present wishing to address this matter and
closed the public hearing.
Council Member Anderson inquired whether staff looked into Aircon Energy's references and
spoke with clients about the company's reputation.
Associate Electrical Engineer Ahern indicated that Aircon Energy's reputation was verified
as very good by Butte County, Chico Unified School District, and Shasta County.
In response to Council Member Anderson, Mr. Hayes indicated that a majority of the
company's clients have elected not to purchase guarantees.
Mr. Warren stated that Electric Utility staff had been involved in the planning process and
expressed confidence that savings would be achieved.
Electric Utility Director Feider added that staff is confident the contract would produce
savings; however, he deferred to Convention Center staff to determine if the guarantee is
essential.
Council Member McGeorge observed that the savings would pay for the guarantee in the long
term, and if the retrofit is effective, the City could opt out of the guarantee.
MOTION: Made by Council Member Anderson, seconded by Council Member Cibula,
finding that the cost to retrofit the Convention Center is less than the cost to citizens if the
retrofit is not accomplished in accordance with California Government Code Section 4217.12,
authorizing staff to negotiate a contract with Aircon Energy for a 15-year, self-funded, non-
guarantee energy system retrofit of the Convention Center which forgoes purchase of a
guarantee, and bring back a contract for Council's consideration. Voting was as follows:
Ayes: Council Members - Anderson, Cibula, and Kehoe
Noes: Council Members - McGeorge, Kight
Absent: Council Members -None
Abstain: Council Members -None
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Appointment to Shasta County Commission on Aging
(B-080-470)
It is the recommendation of Mayor Kehoe that the City Council approve the reappointment
of Housing Specialist II Warren as the City of Redding's representative to the Shasta County
Commission on Aging, to expire on January 3, 2000.
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge,
that Bud Warren be reappointed as the City of Redding's representative to the Shasta County
Commission on Aging, to expire on January 3, 2000. The Vote: Unanimous Ayes
REQUEST FROM THE REDDING COMMUNITY ACCESS CORPORATION (RCAC)
- Supplemental Funding and Permission to Run Information Commercials
(T-040-350-200)
Assistant City Manager Perry provided an overview of the Report to City Council dated
November 20, 1998, regarding requests the City received earlier this year from RCAC for
supplemental funding and for permission to run information commercials for a fee, citing that
without supplemental revenues, operation will cease in the spring of 1999. When the City
renegotiated the cable franchise in 1986, it utilized a cable law provision that required the
cable operator to set aside channels for the public, education, and government programming;
subsequently, the channels were utilized as follows: Public Access - Redding Community
Access Corporation, Governmental - Tourist Channel used by the Visitors and Convention
Bureau, and Education - Shasta County Office of Education.
Funding for the public access channel was set up as an equal match between the cable
operator and the City, and the City's match was paid with 20 percent of the franchise fee
received from the cable operator. The RCAC was formed to oversee the public access
channel in order to separate the City from First Amendment issues, to be able to do fund
raising, and educate the community on television production. The Corporation was made
independent in 1996, and the City and the nonprofit organization entered into a mutually
agreed upon phase-out funding agreement as follows:
City Funds Tourist Channel
FY 1996-1997 $40,000 $10,000
FY 1997-1998 $30,000 $10,000
FY 1998-1999 $20,000 $10,000
FY 1999-2000 0 $10,000
FY 2000-2001 0 $10,000
As structured, RCAC cannot compete with commercial broadcasters for advertising, run
information commercials, or produce advertising for private businesses. The Corporation can
accept gifts, donations, conduct fund raisers, and accept or solicit underwriting and
memberships. Annual revenue has gone from approximately $180,000 per year to
approximately$45,000 in six years. For 1998-1999, RCAC's budget has revenues of$66,050
and expenditures of$130,915. Section 6.40.050 (E3) of the City code prohibits advertising
on the public access channel, while a related issue is ensuring the tax-exempt status of the
nonprofit corporation is not violated.
It is the recommendation of the Assistant City Manager that the City continue funding
$10,000 per year for operation of the tourist channel and $5,000 per year to air City Council
Meetings, allow departments to purchase up to $15,000 worth of programming beginning
July 1, 1999, and indicate that no other funds are available. It is also recommended that
Council authorize reconsideration of the request to air information commercials if Falcon
Cable does not provide the additional $35,000 necessary to operate as an independent
nonprofit agency.
City Clerk Strohmayer advised that several letters of protest and one letter of support were
received and are on file in the office of the City Clerk.
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In response to Council Member Anderson, Mr. Perry reported that the City will renegotiate
renewal of the cable franchise with Falcon Cable in December 2001.
Eric Stearns, 4690 Chico Street, Shasta Lake City, read a letter, incorporated herein by
reference, relating a favorable experience with RCAC's Sci-Tek Academy and supporting
City funding of the station.
Traci Wierman, 17250 Garnero Court, Anderson, stated that she has participated in the Sci-
Tek Academy and believes it to be very beneficial. She encouraged Council to support
RCAC.
Douglas Carter, Assistant Director of the Child Abuse Prevention Council (CAPC), stated
that RCAC provides programming for parenting and family shows. He stated that CAPC
supports Channel 11 because of the quality primetime programming which reaches a diverse
crossection of the community.
Lynn Fritz, Executive Director of RCAC, provided an overview of the various programs
offered by the corporation. She encouraged Council to renew the partnership between cable,
the City of Redding, and various nonprofit organizations. She stated they would like to see
an expansion of different types of government programs, including a town-meeting forum.
Patti Stearns, Development Director of RCAC, stated that the corporation is requesting the
City continue using their services and to develop a partnership with RCAC and other
organizations in the community.
Everett Courter, 4111 Saratoga Drive, Member of the Board of Directors at RCAC, asked
that Council approve funding for the organization in order to continue interaction with the
community.
Raiann Hodge, 4108 Saratoga Drive, Member of the Board of Directors at RCAC, favored
City support for the station. She stated that while the station is seeking funding sources, care
must be taken to not jeopardize RCAC's tax-exempt status.
Jonz Norine, 5926 Sierra Drive, Member of the Board of Directors of RCAC, thanked those
who provided letters of support for City funding of RCAC. He read a letter relating to RCAC
programming and supporting City funding, incorporated herein by reference, signed by the
President of RCAC and the Board of Directors. The letter stated that there are City
ordinances which inhibit RCAC's ability to raise revenue by prohibiting information
commercials, and asked that such ordinances be modified or that the City return to funding
RCAC with funds from the cable franchise revenue.
Melanie Cich, 1644 Magnolia Avenue, representing the Shasta County Office of Education,
supported RCAC funding for quality educational programming. She stated that the services
offered by RCAC would not be replaced should the station cease operation.
Phillip Helton, 1720 Galaxy Way, read a letter relating to the Sci-Tek Academy and support
for City funding of RCAC, incorporated herein by reference.
Brad Fay of KIXE, 603 North Market Street, observed that RCAC cannot provide the
necessary programming to generate funds through pledge drives as KIXE does. He stated
that laws are generally going by the wayside to allow information commercials and
encouraged Council to withdraw this restriction.
Lorraine Dechter, P.O. Box 990061, Director of North State Radio, stated that RCAC is seen
as a model by the nation. She advised that the City has invested a great deal of money in the
station and should take advantage of the investment. She spoke against allowing information
commercials and stated she hoped the station would not have to revert to such methods.
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Tony Seton, 14463 Moss Drive, representative of KQMS and Regent Broadcasting, opposed
staff's recommendation. He related that he is aware of other community access systems
which receive 20 percent of local franchise fees, which would in this case total $87,000.
These funds would enable the station to provide necessary programming and insight into the
community's concerns. Mr. Seton remarked that the staff of RCAC is extremely capable and
an asset to the community.
Sally Nelson, 18045 Ranchera Road, Member of the Board of Directors at RCAC, stated that
the station provides excellent educational opportunities for youth, and she supported City
funding of the station.
Art Montoya stated that RCAC is an excellent medium for City government figures to use in
communicating with citizens. He advised against allowing information commercials, and
suggested Council try to negotiate with Falcon Cable to match all RCAC funds. He
mentioned that Old City Hall, which has been renovated into a full production studio, could
offer live performing arts telecasts except for a lack of money. He opined that increased
funding would make RCAC a functioning and viable part of the community.
Don Lee, 815 Gold Street, representing the First United Methodist Church, presented a
petition in support of continuing City funding for RCAC, which is incorporated herein by
reference.
Fran Jenkins, 2652 Sharon Street, spoke against allowing RCAC to air information
commercials and supported increasing City funding.
In response to Council Member Anderson, Mr. Perry noted that in RCAC's 1998-1999
budget, there was a total funding of $133,000, including the $10,000 from the City of
Redding. Ms. Fritz related that RCAC's funding includes School to Career contract for
services in the amount of$25,000, two Sci-Tek camps with revenue of$3,500 to $4,000, fee
revenues of approximately $20,000, and various grants for production services.
Council Member Anderson stressed that when the current contract with RCAC was
negotiated, Council was assured the station would become self-sufficient and would not ask
for further funds.
Ms. Fritz stated that while in a position of becoming self-sustaining, RCAC needs more time
to do so.
Council Member Cibula suggested the City look into the legality of prohibiting the station
from using information commercials. He noted that the City receives approximately $440,000
per year in franchise fees, and suggested increasing funding by $10,000 should the station be
willing to actively pursue creating programs for the City to deliver its message to the people.
He opined it could be accomplished in next year's budget process.
Council Member Anderson remarked that other cities, while paying for broadcasting services,
do not contribute their fair share of donations. He said that the entire community benefits
from RCAC services and should contribute, and Falcon Cable should match those funds.
Council Member Anderson stated that he supported staff's recommendation. He requested
that RCAC provide staff with a schedule outlining a plan and timeline to become self-
sufficient.
In response to Mayor Kehoe, Mr. Perry advised that there is no obligation for the City to
contribute a portion of the franchise fees, as referred to by Mr. Seton.
Mayor Kehoe suggested funneling private donations for RCAC through the City of Redding
General Fund which Falcon Cable would have to match and thereby increasing contributions.
He requested that staff work with the station on this idea.
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In response to Council Member Kight, Mr. Perry stated more research would have to be
undertaken to determine if Community Development Block Grant funds could be made
available for RCAC.
Council Member Kight observed that while many local organizations support RCAC and the
request for additional funding, there are no donations provided by those groups. He opined
that everyone needs to contribute. He stated that interim funding may be necessary until the
City can renegotiate the franchise agreement with Falcon Cable.
Mr. Perry stated that the direct way for organizations to provide funding is to pay for
RCAC's programming services.
Council Member McGeorge, noting that there have been no community contributions,
wondered how many in the community actually support RCAC. He suggested continuing
funding through negotiations with Falcon Cable, and stated that the idea of channeling
donations through the City's fund is a good way to measure community support.
MOTION: Made by Council Member McGeorge, seconded by Council Member Anderson,
that the City continue funding $10,000 per year for operation of the tourist channel and
$5,000 per year to air City Council Meetings, allow departments to purchase up to $15,000
worth of programming beginning July 1, 1999, and indicate that no other funds are available;
and to approve reconsideration of the request to air information commercials should Falcon
Cable not provide the additional $35,000 necessary for the Corporation to operate as an
independent nonprofit agency; address future funding for public access when the cable
television franchise agreement is renegotiated; survey city subscribers regarding the value of
retaining public access television between now and franchise renewal; and directed that staff
continue to assist RCAC in exploring other revenue sources. Voting was as follows:
Ayes: Council Members - Anderson, Cibula, Kight, McGeorge
Noes: Council Members - Kehoe
Absent: Council Members - None
Abstain: Council Members -None
Mayor Kehoe stated he was encouraged by Ms. Fritz's anticipation of becoming an
independent organization. He explained that he voted no because he supports additional
funding of$10,000 for RCAC. Mayor Kehoe suggested that Turtle Bay, in an extension of
goodwill, donate $10,000 of the funds the City granted to the museum to RCAC. He advised
that presentations be made to the Board of Supervisors and other city councils regarding
RCAC funding.
Council Member Cibula said that while he supported the motion because it provided funding,
he also favored an extra $10,000 in funding. He opined that with franchise fee income of
approximately $440,000, funding should be reexamined at future negotiations.
In response to Council Member McGeorge, Mr. Perry stated there were no known ordinances
prohibiting the station from using information commercials to raise funds.
Council Member Anderson requested a schedule of prioritization, a timeline, and a budget
reflecting RCAC's plan to become self-sufficient.
STATUS REPORT ON MAJOR PROGRAMS AND PROJECTS
(A-050-080)
City Manager Warren stated that this evening's program update focuses on three major
projects: (1) the Downtown Plan, (2) Art in Public Places, and (3) the Electric Utility move
to the Corporation Yard.
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Deputy City Manager Starman provided an update on the Downtown Plan. He stated that
the five-member committee is working on issues relating to the appropriation of$3.5 million
to the project over the next five years. The group has been meeting weekly and is close to
completing its task. The plan is to have a town hall type meeting on December 17, 1998, in
order for members of the community to review the report, and report back to the City Council
for consideration.
Electric Utility Director Feider reported on the Electric Department's move to the
Corporation Yard. He surmised that the move will be beneficial and will provide for more
efficient operation and future expansion. Mr. Feider predicted improved productivity and a
morale boost for staff as a result of the move.
Personnel Analyst Neimer stated that the Art in Public Places Committee is providing input
on how to make capital projects more aesthetically pleasing. She stated that the remodel of
the Redding Municipal Airport includes the use of local art, photography, and exhibit space,
while another large project is incorporating artistic components into the Civic Center.
This was an information item only and no action was required.
RESOLUTION - re Recycling Scrap Metals and Appliances
(F-2-5-600, S-020-550)
Council Member Cibula related that he requested this item be placed on the regular calendar
because of the potential implementation of a fee.
Assistant City Manager Perry provided an overview of the Report to City Council dated
November 23, 1998, relating to the recycling of scrap metals and appliances. Most of the
approximately 550 tons of scrap metal items handled at the Solid Waste Transfer/Recycling
Facility are collected free of charge, with the exception of appliances that contain compressor
motors or refrigerant. The scrap metals are transported to Short's Scrap Iron and Metal for
recycling, where the materials have usually been sold at a price sufficient to cover the City's
handling cost; hence, the Utility has not charged the public to drop off these materials. In
1997, Short's paid the City an average of$20 per ton for scrap metal and appliances.
With the lowering of domestic market prices, Short's is currently charging $10 a ton for tin
and is anticipated to charge $20 a ton in December. Staff has explored the possibility of
selling to an out-of-town recycler, but this would require stockpiling scrap metal material until
it is cost-effective to bring in a company to bale and transport it.
As of November 1, 1998, customers have been asked to take used appliances (except for
those containing refrigerant and compressor motors) directly to Short's, where the customer
must pay $10 a ton to recycle; subsequently, scrap metals are being disposed as waste, and
it is anticipated these materials may start showing up at illegal dump sites along roadsides.
Assistant City Manager Perry recommended that the City Council adopt a fee schedule for
recycling scrap metals and appliances.
Council Member Anderson suggested the City purchase recycling equipment and process the
scrap metal at the Transfer Facility. Mr. Perry advised that a bailer would cost $450,000 to
$500,000, an expense which makes the idea not feasible at this time. He predicted the
demands for recycling will only increase and that this may need to be addressed in the future.
MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge,
that Resolution No. 98-169 be adopted, a resolution of the City Council of the City of
Redding adopting a fee schedule for recycling scrap metals and appliances, to be implemented
by the Solid Waste Director when the price received for scrap metals is less than cost to
handle and transport them to a buyer.
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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. 98-169 is on file in the office of the City Clerk.
Mayor Kehoe indicated it is his preference that the City stockpile materials until it is feasible
for an out-of-area recycler to bale and transport them.
Council Member Cibula requested that staff ensure the fee is eliminated once the shortfall is
made up.
MONTHLY FINANCIAL REPORT - Electric Utility
(B-130-070)
Electric Utility Director Feider provided an overview of the Report to City Council dated
November 13, 1998, incorporated herein by reference, regarding the Electric Utility's
Monthly Financial Report for October 1998. Retail power sales revenue through October
1998 is 4.9%, or $1,263,004, above projections, and wholesale power sales to date are
39.9%, or$3,894,412, above projections. Total operating revenue is 19.6%, or $6,975,249
above plan, and operating revenue after energy costs is 36.1%, or $5,258,332 above
projections.
Mr. Feider advised that the total cost of electricity through October 31, 1998, is $1,716,916
above projections. The Utility's earnings before interest, depreciation, and amortization were
48.3%, or $5,578,618, above the projected year-to-date level. The current outstanding
balance for the Debt Reduction Program is $156.8 million.
It is the recommendation of staff that the report be accepted as presented.
It was a consensus of the Council to accept the Electric Utility's Monthly Financial Report
for October 1998 as presented.
RESOLUTION - to Amend Investment Policy No. 408
(A-050-060-555)
City Treasurer Linville provided an overview of the Report to City Council dated November
20, 1998, relating to the 1998 annual update to City of Redding Investment Policy No. 408.
Subsequent to the last update, Assembly Bill 1874 of June 26, 1998, and Senate Bill 1793 of
September 18, 1998, were filed with the Secretary of State to amend investment legislation.
It is the recommendation of the City Treasurer and the Investment Policy Committee that City
Council approve Resolution No. 98-170 amending Investment Policy No. 408 to clearly
reflect the responsibility and action to be taken in the investment of City funds.
MOTION: Made by Council Member McGeorge, seconded by Council Member Anderson,
that Resolution No. 98-170 be adopted, a resolution of the City Council of the City of
Redding amending Investment Policy No. 408 to reflect 1998 updates. 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
Resolution No. 98-170 is on file in the office of the City Clerk.
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MONTHLY FINANCIAL REPORT - General Fund
(B-130-070)
Administrative Services Director Bachman highlighted the Report to City Council dated
November 6, 1998, incorporated herein by reference, concerning the General Fund's Monthly
Financial Report for October 1998. Total revenue to date is $10.3 million, or $193,229 (1.9
percent) below staff's original cash flow estimate. Expenditures to date total $13,748,502,
or $598,696 (4.2 percent) below staff's original cash flow projection.
It is the recommendation of staff that the City Council accept the Monthly Financial Report
for October 1998.
MOTION: Made by Council Member Kight, seconded by Council Member Cibula, to accept
the General Fund's Monthly Financial Report for October 1998. The Vote: Unanimous Ayes
CONSIDERATION OF REQUEST TO WAIVE PENALTIES ON DELINQUENT
ASSESSMENTS - Churn Creek Assessment District No. 1, Parcel Nos. 116-480-16 and
116-480-17
(A-170-120-100)
City Attorney Wingate provided an overview of the Report to City Council dated November
20, 1998, relating that the owner of Parcel Nos. 116-480-16 and 116-480-17 in Churn Creek
Assessment District No. 1, Carl Martellaro, has agreed to pay delinquent principal payments
in the amount of$4,847.09, and has requested that delinquent penalties accruing since 1996
totaling$2,783.54, be waived. Mr. Martellaro received a deed in lieu of foreclosure wherein
the primary owner of real property within the assessment district, Redwood Investors, Ltd.,
(Redwood) filed for relief under Chapter 11 of United States Bankruptcy Court. The
bankruptcy judge did not require Redwood to pay the delinquent assessments and penalties,
and Mr. Martellaro now requests that the penalties attached to the assessments be waived.
It is recommended that the City Council authorize the City Treasurer to waive the penalties
provided that Mr. Martellaro pay the delinquent principal amount within ten days from the
date of the City Council Meeting.
MOTION: Made by Council Member Kight, seconded by Council Member McGeorge, to
authorize the City Treasurer to waive delinquent penalties on Parcel Nos. 116-480-16 and
116-480-17 in Churn Creek Assessment District No. 1, currently owned by Carl Martellaro,
provided that payment occurs within ten days. Voting was as follows:
Ayes: Council Members - Cibula, Kight, McGeorge and Kehoe
Noes: Council Members - Anderson
Absent: Council Members -None
Abstain: Council Members - None
Council Member Anderson advised that he voted against the motion based on principal, and
he did not agree with automatically waiving penalties set by the City.
Mayor Kehoe conceded there was merit to this statement, and asked whether Council was
interested in reconsidering the motion.
MOTION: Made by Council Member Kight, seconded by Council Member Cibula, to
reconsider the previous motion to waive delinquent penalties. 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
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Council Member Cibula indicated that penalties are intended to be punitive and an incentive
measure, and while he did not agree with waiving penalties as a general policy, he understood
that Mr. Martellaro was prohibited from making the payments because of the requirements
of bankruptcy court.
Council Member Anderson stated that Mr. Martellaro knew that he was taking a calculated
risk because the title was in bankruptcy court.
City Attorney Wingate explained that a trustee holder may foreclose at any time under the
deed of trust; however, the rights of the trustee holder during Chapter 11 proceedings are put
in abeyance and no action can be taken to acquire the property.
Council Member Anderson opined that this is part of the business of lending money and
advised he is not in favor of forgiving penalties.
Council Member McGeorge agreed with Council Member Cibula's remarks, and stated that
he did not feel there was a likely risk of recurrence.
MOTION: Made by Council Member Anderson, seconded by Mayor Kehoe, authorizing the
City Treasurer to collect delinquent penalties on Parcel Nos. 116-480-16 and 116-480-17 in
Churn Creek Assessment District No. 1, currently owned by Carl Martellaro. Voting was as
follows:
Ayes: Council Members - Anderson and Kehoe
Noes: Council Members - Kight, McGeorge, Cibula
Absent: Council Members -None
Abstain: Council Members - None
This motion failed.
MOTION: Made by Council Member McGeorge, seconded by Council Member Kight, to
authorize the City Treasurer to waive delinquent penalties on Parcel Nos. 116-480-16 and
116-480-17 in Churn Creek Assessment District No. 1, currently owned by Carl Martellaro,
provided that payment occurs within ten days. Voting was as follows:
Ayes: Council Members - Cibula, Kight, and McGeorge
Noes: Council Members - Anderson and Kehoe
Absent: Council Members -None
Abstain: Council Members -None
This motion carried.
CLOSED SESSION
At the hour of 9:51 p.m., Mayor Kehoe announced that Council will adjourn to closed session
to discuss the following:
Closed Session pursuant to California Government Code Section 54956.9(c)
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
One (1) Case
(L-100)
At the hour of 9:59 p.m., Mayor Kehoe reconvened the meeting to regular session.
No action was taken.
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ADJOURNMENT
There being no further business, at the hour of 10:00 p.m., Mayor Kehoe declared the
meeting adjourned.
APPROVED
AV"-‘14(fla
ayor
ATTEST
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City Clerk /
12/01/98