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HomeMy WebLinkAboutMinutes - City Council - 1999-02-02 27 City Council, Regular Meeting Council Chambers 1313 California Street Redding, California February 2, 1999, 7:00 p.m. The Pledge of Allegiance to the Flag was led by Council Member Cibula. The Invocation was offered by Pastor Lane Zachary of the First Church of the Nazarene. The meeting was called to order at 7:00 p.m. by Mayor Anderson with the following Council Members present: Cibula, Kight, Pohlmeyer, and McGeorge. 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, Chief of Police Blankenship, Fire Chief Wagner, Support Services Director Kersten, Finance Officer Strong, Administrative Services Director Bachman, Recreation Superintendent Carpenter, Planning Manager Keaney, Housing Manager Flory, Interim City Treasurer Ervin, Senior Planner Manuel, Senior Planner Morgon, Electric Group Manager Ryan, 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 January 19, 1999 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 14, check numbers 265144 through 265563 inclusive, in the amount of$2,996,575.72, for the period January 19 through January 28, 1999, be approved and paid, and Payroll Register No. 15, check numbers 457846 through 458189 inclusive, and electronic deposit transaction numbers 57728 through 58224, in the amount of$1,456,880.41, for the period January 10 through January 23, 1999, be approved. TOTAL: $4,453,456.13 Treasurer's Report - December 1998 (A-050-100-600) Total Treasurer's Accountability - $95,329,253.04 Total City of Redding Funds, Funds Held in Trust, and Funds of Related Entities - $155,490,974.69 ACR133 and Cash Reconciliation Report - December 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 December 1998 be accepted. Ordinance No. 2236 -re Rezoning Application RZ-10-98, by Azi Barzin and City of Redding (Property Located on East and West Sides of Shasta View Drive South of the Future Extension of Palacio Drive) (L-010-230) It is recommended that Ordinance No. 2236 be adopted, an ordinance of the City Council of the City of Redding amending Section 18.06.020 of the Redding Municipal Code relating 02/02/99 28 to the rezoning of certain real property in the City of Redding to "R-1" Single Family Residential District and "OS" Open Space District (RZ-10-98). Ordinance No. 2237 - re Redding Municipal Code Violations (C-110-100-400) It is recommended that Ordinance No. 2237 be adopted, an ordinance of the City Council of the City of Redding amending Section 1.12.010 of the Redding Municipal Code relating to violations. 111 Property Status Report (C-070) It is the recommendation of the Assistant City Manager that City Council accept the Property Status Report as of August 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. Disposition of Surplus Property on Island Drive (C-070-200) It is the recommendation of the Assistant City Manager that City Council approve the Exchange Agreement between the City and Jeff Teall for 3,394 square feet of excess City property with a 2,338-square-foot easement for the existing Bonnyview Ditch and 933 square feet of land on the north side of the ditch, and the Purchase and Sale Agreement between the City and John and Debbie Stokes for the 933-square-foot portion of land acquired through the exchange with Mr. Teall for$465, and authorize the Mayor to sign same on behalf of the City. Acquisition of Residential Refuse Containers Through a Bid Received by the City of San Bernardino (B-050-100, S-020-100) It is the recommendation of the Assistant City Manager that City Council waive the bid process and authorize the purchase of 1,296 containers through the City of San Bernardino's contract with Toter, Inc., for $59,477.09, a total savings of $5,151.88 over the current factory bid price, and authorize the City Manager to sign the appropriate documentation. Purchasing System Transaction Listing - Fourth Quarter 1998 (B-050-100) It is the recommendation of the Support Services Director that City Council accept the purchasing system transaction listing of purchases between $5,000 and $25,000 for October 1 through December 31, 1998. Resolution - re Abandonment Application A-14-98, Abandoning Dedicated Open Space Located at 3340 Glenrock Way, by Paul Edgren (A-010-040) It is the recommendation of the Development Services Director that City Council adopt Resolution No. 99-19, a resolution of the City Council of the City of Redding declaring its intentions to abandon an area dedicated to the City for open space, floodplain, and trail purposes, located to the rear of a single-family residential lot at 3340 Glenrock Way, adjacent to the Sacramento River(A-14-98), and that a public hearing be set for March 16, 1999. Cancellation of Fuel Supply Agreement (C-2994) with Coast Energy Group, Inc. (E-120-150) It is the recommendation of the Electric Utility Director that City Council approve the early termination of the Fuel Supply Agreement (C-2994) with Coast Energy Group, Inc., as such services are no longer required, and payment to the company of not more than $11,375 as required by the contract for early termination. 02/02/99 29 Funding Plan for Renovation of The Plunge (P-050-700-600) It is the recommendation of the Community Services Director that City Council approve the use of the balance available in the Park In-Lieu Fund in the amount of$7,350, for a study for renovation of The Plunge. Funding Agreement with Caltrans to Build Sidewalk. Curb, and Gutter at South Market/Cypress Interchange (S-050-100) It is the recommendation of the Community Services Director that City Council approve Contribution Agreement No. 02-0026 with Caltrans for 400 feet of curb, gutter, and sidewalk to complete improvements at the Cypress Avenue/Market Street intersection. Caltrans has offered to pay $40,000 in construction costs and the City would be responsible for $8,000 in design and inspection fees. McConnell Foundation Grant Submission Approval (G-100) It is recommended that City Council approve a Police Department request for submission of two McConnell Foundation grants, the first in the amount of$4,500 to purchase a TRAK Communications System for distribution of information in cases of missing or abducted children and pay for software, maintenance, and phone expenses for three years, and the second grant for $3,500 to fund a personal computer and printer for the Police Department grant writer. Resolution - to Adopt a Declaration of Trust for Assets of the City of Redding Deferred Compensation Plan (P-100-030) It is the recommendation of the Administrative Services Director that Resolution No. 99-20 be adopted, a resolution of the City Council of the City of Redding adopting a Declaration of Trust for assets of the City of Redding Deferred Compensation Plan effective January 1, 1999. Acceptance of Final Map - Blossom Park Subdivision, Unit 5 (S-31-90) (S-100-044) It is the recommendation of the Director of Public Works that City Council accept the Final Map for Blossom Park Subdivision, developed by Henry Booher and Adolph Meyer, Jr., authorize the Mayor to sign the subdivision agreement and instruct the City Clerk to file the Map with the Shasta County Recorder. MOTION: Made by Council Member Kight, seconded by Council Member McGeorge, that all the foregoing items on the Consent Calendar be approved and adopted as recommended. Voting was as follows: Ayes: Council Members - Cibula, Kight, McGeorge, Pohlmeyer, and Anderson Noes: Council Members -None Absent: Council Members - None Abstain: Council Members - None Resolution Nos. 99-19 and 99-20 and Ordinances No. 2236 and 2237 are on file in the office of the City Clerk. APPOINTMENT TO THE REDDING PLANNING COMMISSION (B-080-300) Mayor Anderson reported that a new appointment to the Planning Commission is necessary due to the resignation of Tom Spade, and he recommended Frederick Weatherill. 02/02/99 30 MOTION: Made by Council Member McGeorge, seconded by Council Member Pohlmeyer, to appoint Frederick Weatherill to the Planning Commission, to serve an unexpired term to May 1, 1999. The Vote: Unanimous Ayes CITY COUNCIL LIAISON ASSIGNMENTS (A-050-060) Mayor Anderson presented an updated City Council Agency, Commission, Committee and Departmental Liaison Representatives and Council assignments listing and recommended that it be approved. MOTION: Made by Council Member Cibula, seconded by Council Member Kight, to ratify the updated City Council Agency, Commission, Committee and Departmental Liaison Representatives and Council assignments listing. The Vote: Unanimous Ayes FOLLOW-UP REPORT OF THE DOWNTOWN REVIEW COMMITTEE (B-080-600) Stephen Baker, Chair of the Downtown Review Committee, recalled that at the previous Council Meeting, the Committee was asked to meet and report back to Council with respect to what further work the Committee wanted to do and to provide guidance as to a timeline in which it could be done. He stated that the Committee addressed the issues and identified five recommendations, which he presented to Council and staff as follows: 1. Participate directly in the selection of the consultant to prepare the Downtown Specific Plan by having one member serve on the selection panel. 2. Serve as the citizen's advisory group to work with staff and the consultant in preparation of the Downtown Specific Plan. 3. Work with staff to develop guidelines for a building facade improvement loan and/or gant program for the City Council's consideration. 4. Review and make recommendations to the City Council on expenditures for proposed Downtown partnership projects. 5. Once the specific plan is completed and adopted by the City Council, the Committee would like the opportunity to revisit the issue of how to spend the remaining funds designated for Downtown and North and South Market Streets. In response to Council Member Kight, Mr. Baker stated that the Committee does not profess to be professional downtown planners; however, the Committee has a great deal of information and can provide community input into the consultant selection process. Stating that opinions of what is appropriate for downtown can vary dramatically, he pointed out that Council will be the final authority. He observed that public input should continue to be received during the 18 months of the planning process, and it is the Committee's desire to communicate the appropriate information to the consultant. He stressed that the Committee has no agenda regarding the consultant's end product. Council Member Kight related concerns with regard to the amount of staff time needed to work with the Committee and hoped to minimize the impact on staff. Mr. Baker conceded that staff time is a valid concern. He anticipated that the planning process for the next 18 months will be less engaging with the Committee addressing the facade improvement program and downtown partnership projects, which have already been approved by Council. In response to Council Member Kight, Mr. Baker opined that 14 months is a reasonable timeframe for completing the specific plan, and the Committee is requesting four additional months for consideration of how to spend the remaining funds for an estimated timeframe of 18 months. He added that the Committee will monitor how the plan is evolving. Council Member Kight stated that he appreciated the Committee's efforts. 02/02/99 31 Council Member Cibula noted that part of the Committee's original directions involved developing a comprehensive strategic plan. He asked if it was the Committee's understanding that it would be involved in the development of a plan with the consultant. Mr. Baker explained that the original charge was to make findings and recommendations with respect to the expenditure of funds in the amount of$3.5 million. He said that the Committee anticipates providing input into the specific plan process. Council Member Pohlmeyer asked whether the addition of the Committee would slow down the consultant selection process. City Manager Warren said no, and observed that it was not uncommon to have people other than staff sitting in on the process. James Theimer, 2515 Park Marina Drive, stated that as a design professional he could offer a perspective with regard to the amount of time it takes to develop a plan. Noting that a private consultant would prefer to complete a project faster, rather than slower, he said it is typical for the process to be slower in a situation where the public is involved but claimed the Request for Proposal (RFP)could be set up to avoid this. He opined that it is worthwhile to have someone available for the consultant to ask questions, and the Committee members are well informed and now is the time to use that knowledge. He contended that the Committee has done more than its due diligence, and if there is special interest on the part of the Committee, it is a beneficial special interest. Mayor Anderson noted there to be a consensus of Council for continuation of the Committee, and requested that discussion proceed relative to the five recommendations, how the Committee should be involved, for how long, and in what manner. With regard to item one, Council Member McGeorge stated that he supports having a member of the Committee in the selection process, as it would instill confidence in the consultant with whom they are working. Council Member Cibula and Council Member Pohlmeyer agreed, stating that they preferred Committee participation and did not feel having a Committee member involved would impede the overall process. Council Member Kight commented that his main concern is the considerable amount of staff time necessary for this process during a time when the City is conducting a General Plan review. He asked whether the process could be completed in 12 months. City Manager Warren stated the Committee would work within whatever goal Council sets, but did note that quality is also a factor. Mayor Anderson stated that while a majority of Council approved the first recommendation of the Committee, he preferred having planning experts on the selection committee. Regarding item two, Council Member Pohlmeyer asked whether the Committee would represent the citizens or some aspects of Council's responsibility. Council Member McGeorge opined that the City would be well served should the Committee act as liaison to the consultant. Council Member Cibula offered full support of this recommendation, and said the consultant should speak with other groups other than the Downtown Review Committee. Council Member Kight agreed. Mayor Anderson expressed his support of item two and related his hope that the consultant would work directly with all interested parties. 02/02/99 32 Mr. Warren stated that the RFP would outline the responsibility of the consultant to work with all interested groups, and that public meetings would be part of the RFP process. With respect to item three, Council Member Cibula felt the recommendation for the Committee to work with staff on a facade improvement and/or grant program was appropriate. Mayor Anderson supported item three and advised that the Committee should not be involved in determining eligibility for grants or loans. Council Member Cibula offered support of item four regarding Committee recommendations on Downtown partnership projects. Council Member Kight suggested Council establish a 12-month timeframe, with a completion date of February 1, 2000. He said that this deadline could be adjusted at a later date if found to be unrealistic. Mayor Anderson and Council Member Cibula concurred. Mr. Baker indicated that he would communicate Council's direction and comments to the Committee members and follow Council's guidance. MOTION: Made by Council Member Kight, seconded by Council Member Council Member McGeorge, to accept the five recommendations of the Downtown Review Committee, with the process to be completed by February 1, 2000. The Vote: Unanimous Ayes STATUS REPORT OF THE MILLENNIUM CELEBRATION COMMITTEE (B-080-600) City Manager Warren provided an overview of the Report to City Council dated January 25, 1999, relating to the planning of a Millennium Celebration by a citizen's committee. He noted that the members of the committee wished to inform Council of their progress. Mr. Warren said it is the recommendation of staff that City Council approve funding support for the Millennium Celebration in the amount of$18,000. Tim Stautberg, General Manager of the Record Searchlight and Millennium Celebration Committee member, stated that the proposed celebration is tentatively planned to occur on a section of Park Marina Drive. He related that the Committee's mission is to develop a collective of local businesses, agencies, and organizations to work on planning and staging a series of events to celebrate the Millennium in Shasta County. He advised that the New Year's Eve celebration will be a once-in-a-lifetime event for the community, and the Committee needs the City's support to make it happen. Council Member McGeorge related concerns about the City's ability to budget funding for the event. City Manager Warren pointed out that while the budget is tight, it would be a shame to pas up this special event. He assured Council that the City would find a way to budget the necessary funds. MOTION: Made by Council Member Kight, seconded by Council Member McGeorge, to approve funding support for the Millennium Celebration in the amount of$18,000, and that the 1999-2000 Community Events budget reflect the approval. The Vote: Unanimous Ayes Mayor Anderson thanked the Committee for putting the project together. 02/02/99 33 EXTENSION OF FUNDING AGREEMENT WITH TURTLE BAY MUSEUM AND ARBORETUM ON THE RIVER (B-130-030, C-070-250-250) Deputy City Manager Starman provided an overview of the Report to City Council dated January 26, 1999. He related that the purpose of this report is to confirm Council's desire to budget the amount of$400,000 for the Turtle Bay Museum and Arboretum on the River, beginning fiscal year 1999-2000 and thereafter. He recalled that in 1996 Council directed staff to include a $400,000 line item in the City's Ten-Year Financial Plan for contingencies starting in fiscal year 1999-2000, and one contingency discussed at that time was the possibility the City would continue to contribute funds to Turtle Bay. Council, however, never explicitly voted to provide this funding to Turtle Bay after June 30, 1999. It is recommended that City Council approve the contribution of$400,000 per year to the Turtle Bay Museums and Arboretum on the River starting in fiscal year 1999-2000, enabling Turtle Bay to continue to maintain current service levels. Fran Jenkins, 2652 Sharon Street, stated that when the original funding was granted, the Turtle Bay Committee's recommendation was that the $400,000 be tied to performance, and that Turtle Bay would be required to come before Council during budget review and state whether it met its goals. Council Member Kight asserted that Council should be clear in defining its expectations in return for funding. He suggested that Council receive an update annually during the budget process to relate what has been accomplished and provide a clear benchmark by which to measure progress and determine whether Turtle Bay is a good investment for the City. Council Member McGeorge agreed and stated that he supported providing assistance until fundraising projects are on line. He said that funding should be considered yearly until the project comes on line. Deputy Manager Starman related that performance measurements can be incorporated into the agreement. He noted that the first review was to take place in four years, or two years after the doors opened. Council Member Kight reiterated that the review should take place every 12 months. He stated that the benchmarks will change, and it should be determined what is expected each year so the City can work effectively with Turtle Bay. Council Member Cibula asked Turtle Bay Executive Officer Judy Lalouche to comment on the effects of not having a long-term funding commitment and how that affects operations. Judy Lalouche stated that the review committee agreed to postpone a shakedown for two years. She said that Turtle Bay assured funders that it has the City's financial support; and Turtle Bay forecast its budget based on the City's support because they believed funding in the amount of$400,000 would be part of the operating budget until the second year. Ms. Lalouche offered to work with staff on creating benchmarks for the City to evaluate its investment and come back with an operations report in 12 months. She assured Council that Turtle Bay is a good investment. Mayor Anderson asserted that the Turtle Bay Committee that reviewed Turtle Bay operations did not have the authority to bind the City financially. He stated that it was his recollection that $400,000 was to be set aside in a discretionary contingency fund, and that ultimately Turtle Bay was to be fully self-sufficient. Deputy City Manager Starman verified that the parties to the original 1994 agreement agreed the goal is that the Museums become self-sufficient on or before June 30, 1999; however, a 02/02/99 34 condition of the extension agreement states that the President of the Board of Directors of Turtle Bay Museum and Arboretum put in writing that they understand, agree, and can demonstrate that Turtle Bay will be able to provide adequate operations with no more than $400,000 per year from the City beginning July 1, 1999. Ms. Lalouche said it was the recommendation of the City Manager to Council after the priorities committee's recommendations to grant $7 million from the Redding Redevelopment Agency and drop the City's funding from $690,000 to $400,000 a year. City Manager Warren clarified that he had recommended such funding with the incorporation of performance criteria. He anticipated that Council would determine the length of funding. Council Member Cibula remarked that originally these funds were used by the City to finance museums. Ms. Lalouche offered to provide Council with a review upon request. She mentioned that Turtle Bay has developed a $5 million endowment, upon recommendation of the City Manager, which will aid the organization in becoming self-sufficient and economically stable. In addition, she said they will continue to seek entrepreneurial opportunities in order to generate earned income rather than contributed income. City Manager Warren recommended that the City use the contingency fund in the amount of $400,000 per year for Turtle Bay for four years and pointed out four reasons supporting his recommendation: 1) The project may be an economic giant, as indicated by the Wolfe study, 2)it is the recommendation of the committee, 3)it is $290,000 less per year than the City has been paying for museum services, and 4) lack of City funding could hurt the organization's chances of receiving funding from state and federal agencies. Mr. Warren recommended that a review be held each year at budget time, and that the performance criteria stay in place and be judged at the end of the fourth year to determine whether the City continues to fund all or part of the money. In response to Council Member Kight who asked what would happen should City revenues decrease and funds not be available for Turtle Bay, Mr. Warren recommended that Council leave its options open and make a commitment pending budget review. Council Member Cibula suggested the agreement include an "escape clause" to provide for contingencies such as an unexpected drop in revenue. Mr. Starman related that the existing agreement contains such a clause in the section entitled Appropriation of Funds, which states if funding is not appropriated by Council, the City does not owe it, thereby giving Council the ultimate decision every budget year. In response to Mayor Anderson, City Attorney Wingate assured that the City is not entering into a long-term agreement which could be construed as an indebtedness binding future Councils. Council Member Pohlmeyer suggested a review take place at the end of the third year so that Turtle Bay has a year to plan accordingly. Council Member Cibula opined that the City should receive information each year. He noted that if anything should change over the course of the next year, Turtle Bay would still have two years remaining to meet its goal. Ms. Lalouche responded that Turtle Bay would not be open for the first two years. She stated that the first year will be a learning experience for determining visitor loads, changing 02/02/99 35 hours, and which exhibits work and which do not, and what is learned can be applied the second year. Mayor Anderson said that staff should develop standards and means for measurable reporting to determine how Turtle Bay is progressing. He opined that the City should receive progress reports annually to measure performance and that he did not want to wait three to four years for a progress report. Council Member Kight remarked that this is an $8.6 million commitment, and while for a good project, he wanted to insure accountability of the citizens' money. He opined that the project will be self-sustaining and a great boon for the City. While Mayor Anderson supported staff's recommendation, he cautioned that the City's money is finite, and that any additional library funding would have to come from the $400,000 contingency fund. MOTION: Made by Council Member Kight, seconded by Mayor Anderson, to approve the contribution of$400,000 annually to Turtle Bay Museums and Arboretum on the River for four years beginning fiscal year 1999-2000; directed the Museum to submit progress reports annually; City Council will consider continuance of funding prior to the end of the fourth year; and directed the City Attorney to prepare an amendment to the funding agreement for submittal to Council at a subsequent Council meeting. The Vote: Unanimous Ayes Council Member McGeorge said that he favored the motion and has always been a supporter of Turtle Bay, but stressed that no committee or organization should make financial commitments on behalf of the City in the future. REPORT OF THE LIBRARY REVIEW COMMITTEE (L-050) Support Services Director Kersten provided an overview of the Report to City Council dated January 22, 1999, regarding the Report of the Library Review Committee. He summarized the Committee's five recommendations as follows: 1. Change governance of the library system from a County system to a County-City system. 2. Expand library service to Shasta County by increasing the hours libraries are open, increasing the size of the main Shasta-Redding library, and plan for future branches in Shasta Lake City and East Redding as funding becomes available. 3. Construct a new main library in Redding at an estimated cost of$20 million. 4. Fund construction of a new main library from library bond act funds and/or a dedicated 1/8-cent sales tax which sunsets after a prescribed time period. 5. Fund the increased annual operating expenses of the enhanced Shasta-Redding Library system with income from a permanent revenue producing fund, Shasta County funds, and City of Redding funds. It is the recommendation of the Support Services Director that City Council accept the report, thank the Committee members, and review the work plan after July. He said that consideration should be given to a joint effort of fund raising, campaigning, site location, and review of revenue enhancements if the Board of Supervisors wishes to pursue a joint effort. Mr. Kersten added that this morning the Board of Supervisors directed staff to initiate contact with the three city managers in the County in an attempt to secure a solution to the library dilemma and asked for a progress report on May 1, 1999. Mr. Kersten commented that the City should stand ready to work with the County for a library everyone can be proud of. Kathleen Jordon, Library Review Committee member, stressed that broad input is needed from various groups to determine the type of library services appropriate for Shasta County and the cities in the future. She opined that improved library services are a vital part of the 02/02/99 36 greater Shasta community renaissance, but what the citizens want and are willing to pay for is most important. Ms. Jordon reviewed the Committee recommendations. With regard to the estimated $20 million for building a new library, she conceded it is a great deal of money and will not be easy to find; however, it is necessary to provide needed programs and traditional library service. While she noted it could be built for less, it should be of a quality that everyone can be proud of for decades. Victoria McArthur, Library Review Committee member, thanked Council for the opportunity111 to contribute to the community by participating in this review. She stated that increased population has made it necessary for the City and County to work together in support of an enhanced library system. In her opinion, leadership of the library program can be best provided by an experienced librarian, such as the County has in place, and that administrative needs can be served by a general manager with business administration expertise to serve as liaison between the County and City. Michael Ashby, Library Review Committee member, related that it is critical the City maintain cooperation with the County. He said that the library system has problems that are not merely cosmetic. Mr. Ashby reported that the City of Redding spent $3.07 per person last year for library services, while the State average is $18 per person, and the average for libraries in counties of similar population is $20.46 per person, making the City's contribution 15% to 20% of the average. Furthermore, the City is low on the list with regard to the number of hours the library is open. He concluded that the $20 million price tag for a new library merely provides all the necessary services. He urged Council to accept the report, direct staff to work with the County and other cities, and to produce a plan of action to address the issue and decide how to proceed. Gretchen Govier, Library Review Committee member, claimed there is an opportunity for some special library work to germinate from the Committee. She said that if one thing is accomplished from this process, she hopes to inform the Board of Supervisors and Council about the necessity of conducting an in-depth, county-wide, future library needs analysis. She said the future should provide many opportunities to improve and expand the library system and this is a just the beginning of the process; however, the City cannot spend all its time on long-range planning and neglect immediate library service needs for hours, materials, and staff'. She complimented the current library staff for providing the best services that limited resources can buy. The City Council thanked the members of the Library Review Committee. In response to Council Member Kight, City Manager Warren stated that unless there are available funds, it would be difficult to plan a new library or even improve the current one. He envisioned that the first step is cooperation between the City and County, and from there looking at foundations or the State of California for monies to build. He said there does not appear to be additional money available from the City of Anderson, the City of Shasta Lake, the County, or, unless Council changes priorities, from the City. He mentioned a state ballot measure scheduled for November 2000, if successful, could provide partial funding for a new library. Council Member Kight stated that the County and cities seem to want a library system but there is not enough money to go around. He said that the first step is to work together, and he supports staff working with the Board of Supervisors and other cities to that end, with the understanding that there is no more money to be put into the library system. Council Member Cibula remarked that the focus should remain on having a fully operational library. He explained that the more efficiently operated the process is and the more community support received, the more successful the City will be in its endeavor to receive grants. He recommended that the City attempt to resolve the issue of extending library 02/02/99 37 services and hours. Council Member Cibula agreed that cooperation with the County should be the first step, and he suggested reviewing the possibility of increasing funding at budget time. Council Member Pohlmeyer stated that he enjoyed working as a member of the Library Review Committee. Council Member McGeorge suggested the City perform an assessment of needs to determine essential library services. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member McGeorge, to accept the report of the Library Review Committee; direct staff to facilitate meetings with Shasta County and the Cities of Anderson and Shasta Lake administrators to explore a cooperative effort for the enhancement of library services, and submit a progress report to include a needs assessment to the City Council within 90 days. The Vote: Unanimous Ayes At the hour of 8:50 p.m., Mayor Anderson declared the meeting recessed. At the hour of 8:57 p.m., Mayor Anderson reconvened the meeting to regular session. SCHEDULING FOR THE GENERAL PLAN COMPLETION PROCESS (G-030) Development Services Director Swanson provided an overview of the Report to City Council dated January 27, 1999, relating to the General Plan update and proposed schedule, incorporated herein by reference. It is the recommendation of the Development Services Director that Council approve the proposed schedule for completion of the General Plan, and establish a date of March 31, 1999, for completion by the Task Force of a recommendation to the Planning Commission and City Council. Additional guidance is needed regarding level of involvement the City Council wishes to exercise in its review of the Planning Commission recommended General Plan. In response to Mayor Anderson, Mr. Swanson stated that the City is obligated to hold more than one public hearing on consecutive days for the purpose of formal community input and then decide whether to adopt the plan. City Manager Warren stated that the Task Force started out with a consultant, but then chose to have staff prepare the General Plan draft for review and directed the consultant to prepare the Environmental Impact Report (EIR). He noted that staff has done a good job; however, a consultant should be retained to examine the Task Force report for the following reasons: 1) To provide another set of eyes and comments to the Task Force Report, 2) When the Planning Commission receives the document, they would appreciate assistance from someone who has done plans in other cities. In response to Council Member McGeorge, Mr. Warren explained that he is recommending a new consultant be retained that has expertise in general planning and the ability to facilitate and bring people together. Mr. Warren said that Mintier and Associates has reviewed the General Plan for consistency in State law and to ensure there were no conflicting provisions. Council Member McGeorge opined that Mintier and Associates should be allowed to complete the task. Mr. Swanson explained that the consultant's original scope of work included, among other things, the preparation of policy recommendations. He noted that it was difficult for the consultant, traveling from Sacramento, to meet as often as necessary and complete the work. The original contract amount was $305,000. He related that in November 1997, a report presented to Council suggested shifting the role of the consultant to EIR preparation and 02/02/99 38 limited review of the text being prepared in the policy document. The recommendation was accepted by Council, the contract was rewritten, and no additional funding was necessary. He explained that there was originally EIR work to be done by the consultant but not to the current degree. Council Member Kight asked whether the City received $305,000 worth of work from the consultant. Mr. Swanson stated that it would be premature to say as staff has not reviewed the draft EIR, however, there is slightly less compensation as a result of the contract rewrite. Mayor Anderson said this is a very important project for the City, and if staff feels there is additional work needed, he would support that recommendation. In response to Council Member Kight, Mr. Swanson explained that the cost for a new consultant to review the draft plan would be less than $30,000, but the time it would take depended on the consultant. He did observe there is approximately $10,000 remaining in the General Plan budget which could cover a portion of the expense. Mayor Anderson said that it is not necessary to make a decision this evening as staff may not be prepared to make specific recommendations. Council Member McGeorge suggested waiting until after the Committee meeting the next evening to make a decision relative to obtaining consultant services. Dolores Ellis, 2498 El Verano Street, stated that she represents the Redding Area League of Women Voters, the goal of which is to empower citizens to shape the community. She urged Council to let the Task Force complete its work and not interrupt this citizen-based process. She opined that the group is composed of dedicated men and women who are to be commended for their hard work and generosity in sharing their time and talent to represent the community in this process. James Chapin, Chair of the General Plan Task Force, reported that the group has agreed to complete its work on the draft plan by March 31, 1999, and concurs with staff's recommendation. He explained that the Task Force presented the Public Review Draft in June and was not active other than making presentations, soliciting input from the community, and reviewing the Diaz and Associates Report. Mayor Anderson thanked Mr. Chapin and extended his compliments to the Task Force. In response to Council Member McGeorge, Mr. Chapin said that the plan should be reviewed by a consultant, and he felt the Task Force would be able to work with Mintier and Associates. Allan Dunk, 8836 Knobhill Circle, related concerns that the Diaz & Associates Report revealed the General Plan contained no economic element. Mr. Swanson explained that staff is in the process of reviewing the administrative draft of the economic element, which will be available for public review in approximately 30 days. Even though it may not be completed in time for the General Plan Task Force to perform a thorough review, he said hearings will be held by the Planning Commission and allow for lengthy discussion. MOTION: Made by Council Member Kight, seconded by Council Member McGeorge, to approve the proposed schedule for completion of the General Plan update as outlined in Attachment A; establish March 31, 1999, as date of completion by the Task Force of a recommendation to the Planning Commission and City Council; and set a date 90 days from 02/02/99 39 formal transmission of the recommended General Plan to the Planning Commission for it to certify the Final EIR and make a recommendation to City Council. The Vote: Unanimous Ayes Mr. Warren stated that staff will report back to Council on the proposed scope of work to be performed by the consultant. ELECTRIC UTILITY'S MID-YEAR FINANCIAL REPORT - December 1998 (B-130-070, A-050-125) Electric Utility Director Feider provided an overview of the Report to City Council dated January 25, 1999, incorporated herein by reference, regarding the Electric Utility's Mid-Year Monthly Financial Report for July through December 1998. Retail power sales revenue through the first half of the fiscal year 1999 is 1.4%, or $507,920 above projections, and wholesale power sales to date are 28.7%, or $4,328,480 above projections. Total operating revenue is 12.7%, or$6,639,340 above plan, and operating revenue after energy costs are an exceptional 22.2%, or $4,757,852 above projections. Mr. Feider advised that the total cost of electricity through December 1998 is $1,881,488 above plan. The Utility's earnings before interest, depreciation, and amortization were 30.6%, or $5,157,388 above the projected year-to-date level. The current outstanding balance for the Debt Reduction Program is $142.1 million. It is the recommendation of the Electric Utility Director that the Electric Department's Mid- Year Financial Report Project Status Report for the period July through December 1998 be accepted. In response to Council Member McGeorge, Mr. Feider stated that there are many bills going before legislature; the most important one would modify tax laws and the ability to use tax- exempt financing for the Utility's infrastructure. Mr. Feider related that he and Council Member Kight will be interfacing with Congress on a trip to Washington, D.C., and lobbying for a bill that will ensure favorable relief and provide the City more flexibility on the wholesale market, while preserving the ability to serve the City's customers with the benefit of tax exempt bonds. He said that the Utility is collaborating with the Northern California Power Agency and the American Public Power Association on these efforts. MOTION: Made by Council Member Kight, seconded by Council Member McGeorge, to accept the Electric Utility's Mid-Year Financial Report and the Electric Utility Industry Activities Update for July through December 1998 as presented. The Vote: Unanimous Ayes RESOLUTION - Approving Right-of-Way Agreement with Caltrans and Authorizing Execution of Grant Deed from the City to the State (S-050-100) As a follow-up to construction of a major rehabilitation of Highway 273 (South Market Street), it is necessary to convert the right of access to a permanent transfer of ownership to reflect the final alignment of the retaining wall in South City Park. The City will receive a check for$16,000 from Caltrans in addition to the exchange of land, and it is recommended the monies be used to fund design and inspection of a sidewalk to be constructed by Caltrans, estimated at $8,000, and an art project with a "salmon migration theme" estimated at $6,000. It is the recommendation of the Community Services Director that Council approve the resolution authorizing the Mayor to execute both the right-of-way agreement and deeds. Council Member Cibula noted that he requested this item be moved from the Consent Calendar. He explained that while he was in favor of staff's recommendation, he did not feel funding for the artwork should be project specific and would make a motion on that basis. 02/02/99 40 MOTION: Made by Council Member Cibula, seconded by Council Member Pohlmeyer, that Resolution No. 99-21 be adopted, a resolution of the City Council of the City of Redding approving entering into Right-of-Way Contract No. E.A. 260969 with Caltrans, and authorizing the execution of Grant Deed No. 11644 from the City to the State (State Route 273); approved $8,000 for the design and inspection of curb, gutter, and sidewalk construction funded by Caltrans; and approved $8,000 for a public art beautification project. Voting was as follows: Ayes: Council Members - Cibula, Kight, McGeorge, Pohlmeyer, and Anderson Noes: Council Members - None Absent: Council Members -None Abstain: Council Members - None Resolution No. 99-21 is on file in the office of the City Clerk. MID-YEAR BUDGET REPORT and RESOLUTION - re Eleventh Amendment to City Budget Resolution No. 98-92 (B-130-070) Administrative Services Director Bachman highlighted the Report to City Council dated January 25, 1999, incorporated herein by reference, concerning the Mid-Year Budget Report for the first half of fiscal year 1998/1999. General Fund total revenue to date is $15,255,345, which is$704,259, or 4.5% below staff's original cash flow estimate. Expenditures to date total $41,118,736, an increase of$3,398,286, or 9.0% since the budget was adopted by Council on June 29, 1998. Mr. Bachman stated that General Fund revenue is approximately $700,000 lower than expected, and the following recommendations are made due to decreased sales tax revenue: • Lower sales tax projections by $700,000 • Increase property tax projections by $200,000 • Reduce traffic safety fines revenue by $150,000 • Monitor the new program of charging for towing of vehicles of unlicensed drivers Mr. Bachman stated that expenditures are trending as expected or lower than expected. He recommended that the Street's overlay program be reduced by $100,000 to help offset recommended reductions in revenue, Building and Code Enforcement Divisions's appropriations be increased by $16,000, and Nondepartmental appropriations be reduced by $16,000. With the recommended changes, Mr. Bachman indicated the budget will be balanced. It is the recommendation of staff that the City Council accept the Mid-Year Budget Report for July through December 1998, and that a resolution be adopted adjusting the budget as recommended. Council Member Kight stated that he would like to see the $100,000 reduction from the Streets Division placed back into the fiscal year 1999/2000 budget so streets are not neglected, and the ten-year plan be amended to reflect that change. Mayor Anderson stated that he concurred, and determined it was the consensus of Council that the change be made in the ten-year plan. MOTION: Made by Council Member McGeorge, seconded by Council Member Kight, to accept the Mid-Year Budget Report, and adopt Budget Resolution No. 99-22, a resolution of the City of Redding approving and adopting the 11th Amendment to City Budget Resolution No. 98-92- 1) decreasing appropriations in the Streets Division by $100,000, 2) decreasing appropriations in nondepartmental $16,000, 3) increasing appropriations in building division by $16,000, 4) decreasing revenue estimates for sales tax by $700,000, and 02/02/99 41 5)increasing revenue estimates for property tax by $200,000; and directed the reinstatement of $100,000 for the Streets Division in the fiscal year 1999-2000 budget. Voting was as follows: Ayes: Council Members - Cibula, Kight, McGeorge, Pohlmeyer, and Anderson Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - None Resolution No. 99-22 is on file in the office of the City Clerk. ESTABLISHMENT OF CLOVER CREEK FLOOD PROTECTION AND ENVIRONMENTAL ENHANCEMENT PROJECT (S-060-150-165, L-010-050) Public Works Director August provided an overview of the Report to City Council dated January 26, 1999, relating an ongoing drainage problem in the Clover Creek Drainage Basin which has caused flooding for a number of years. He reported that the CALFED Bay Delta Program (Calfed) has grants available for flood mitigation projects, and it is recommended a concept be developed to demonstrate the project's cost benefit in order to qualify for a grant. He stated that the project would include the creation of an earthen dike and development of a 30-acre retention basin in the area of Shasta View Drive which would retain water during a 100-year flood event. Mr. August related that it is hoped this retention basin can be used for recreation as well and will be working with the community for recommendations. He pointed out that the project plans are due to Calfed by April 1, 1999. It is the recommendation of the Public Works Director that Council approve the establishment of the Clover Creek Flood Protection Area and Environmental Enhancement Project, and that a contract be awarded to ECORP-Sugnet for consulting services. Deputy City Manager Starman related that this project is widely supported by the City's partners in the SHASTEC Redevelopment Project Area, who are the City of Anderson and the County of Shasta, as well as by staff, and the City's next steps would be as follows: • Amend the Capital Improvement Program for the SHASTEC Project area • Amend the City's budget • Amend the implementation program for SHASTEC to include the project • Draft an interim reimbursement agreement with SHASTEC • Assign the project to SHASTEC Gary Finley, 4121 Goodwater Avenue, asserted that the majority of people living along Clover Creek support the proposed project. He said that he appreciates the work done by staff, and recommended that Council approve staff's recommendation. MOTION: Made by Council Member Kight, seconded by Council Member McGeorge, to approve the establishment of the Clover Creek Flood Protection and Environmental Enhancement Project as outlined in Alternative 1, A through G, of the staff report; and award a contract to ECORP-Sugnet for consulting services. The Vote: Unanimous Ayes CLOSED SESSION Mayor Anderson announced at the hour of 9:47 p.m. that Council will adjourn to closed session to discuss the following: Closed session pursuant to California Government Code Section 54956.8: CONFERENCE WITH REAL PROPERTY NEGOTIATOR Property: Purchase of property located in the vicinity of Airport and Knighton Roads (Assessor Parcels No.'s 054-320-04, 056-010-14, 054-310-02, and 054-310-06) 02/02/99 42 Negotiating parties: Kurt Starman, Brian Burk, and Gordon Cota Under negotiation: terms& conditions (C-070-010) Closed session pursuant to California Government Code Section 54956.9(a): CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION City of Redding v. Tierra Oaks LLC, Shasta County Superior Court No. 135064 (L-100) At the hour of 10:50 p.m., Mayor Anderson reconvened the meeting to regular session. No action was taken. ADJOURNMENT There being no further business, at the hour of 10:51 p.m., Mayor Anderson declared the meeting adjourned. APPROVED ayor ATTEST City Clerk 02/02/99