Loading...
HomeMy WebLinkAboutMinutes - City Council - 1999-02-16 43 City Council, Regular Meeting Council Chambers 1313 California Street Redding, California February 16, 1999, 7:00 p.m. The Pledge of Allegiance to the Flag was led by Mayor Bob Anderson. The Invocation was offered by Pastor Lyle Faudree of Redding Christian Fellowship Church. 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 Community Services Gorman, Chief of Police Blankenship, Fire Chief Wagner, Support Services Director Kersten, Assistant Director of Public Works Russell, Finance Officer Strong, Electric Group Manager Ryan, Administrative Services Director Bachman, Planning Manager Keaney, Senior Planner Manuel, Interim City Treasurer Ervin, 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 - Special Meeting of January 19, 1999 Approval of Payroll and Accounts Payable Register (A-050-100-500) It is recommended that Accounts Payable Register No. 15, check numbers 265564 through 265902 inclusive, in the amount of $3,983,152.56, for the period February 2 through February 11, 1999, be approved and paid, and Payroll Register No. 16, check numbers 458210 through 458593 inclusive, and electronic deposit transaction numbers 58230 through 58732, in the amount of$1,351,118.19, for the period January 24 through February 6, 1999, be approved. TOTAL: $5,334,270.75 Recommendation for Extension of Audit Services (F-205-150) It is the recommendation of the Audit Committee that the City Council approve extension of the contract with Nystrom and Company LLP in the amount of$45,350 for the fiscal year ended June 30, 1999, audit. Notice of Public Hearing re Findings and Use of Tax Increment Funds (C-070-250-250) A:'1-Z-Ce. G ' 3 r In compliance with Redevelopment Law which states that the City Council must conduct a public hearing to consider the use of tax-increment revenues for public improvements, a public hearing is scheduled for 7:00 p.m., March 2, 1999, in order to make the necessary findings set forth in Sections 3445 and 33678 off the Health and Safety Code relating to a funding agreement between the Redding Redevelopment Agency and Alliance of Redding Museums. Funding Agreement with Superior California Economic Development District for 1998/1999 (B-130-030, B-080-500) 02/16/99 44 It is the recommendation of staff that the City Council approve the Funding Agreement with the Superior California Economic Development District in the amount of$7,322 for fiscal year 1998/1999, for which funds are included in the proposed 1998/1999 budget. Approval of Comprehensive Tree Plan (A-050-220-075) It is the recommendation of staff that the City Council approve the Comprehensive Tree Plan for the planting and maintaining of trees in planting strips and along streets and in public areas, incorporated herein by reference, as adopted by the Community Services Advisory Commission in order to be compliant with Section 13.40.020 of the Redding Municipal Code. Air Quality Grant Agreement for Fiscal Year 1998/1999 (G-100, B-080-460, E-020-010) It is the recommendation of staff that the City Council approve the 1998/1999 Air Quality Work Program, incorporated herein by reference, and authorize the Mayor to enter into a grant agreement in the amount of$60,000 with the Air Quality Management District for work activities related to the Downtown Specific Plan, Zoning Code Amendments, Revised Street Standards, Cumulative Emissions Tracking Program, and Interagency Communication. Resolution - Authorizing Filing of Grant Application with Federal Aviation Administration for Capital Improvement Projects at Redding Municipal Airport (G-100-070-095, A-090-100) It is the recommendation of the Development Services Director that Resolution No. 99-23 by adopted, a resolution of the City Council of the City of Redding authorizing the filing of a federal grant application in the amount of$363,600 for entitlement Airport Improvement Program (AIP) grant monies to accomplish capital projects totaling $404,000 at Redding Municipal Airport, with the remainder paid by using Passenger Facility Charges and Airports Fund, and authorizing the City Manager to execute application and all subsequent documentation to obtain FAA grant monies. Resolution - re Proceeds of the Sale of Surplus Property at the Redding Municipal Airport (C-070-200, A-090-100) It is the recommendation of the Development Services Director that Resolution No. 99-24 be adopted, a resolution of the City Council of the City of Redding obligating the City of Redding to expend the proceeds of the sale of excess land at the Redding Municipal Airport upon said airport within a five-year period. This action is being taken pursuant to Federal Aviation Administration (FAA) requirements to request approval of a land release and sale of 52.75 acres located adjacent to and directly north of the current Airport Business Park. Resolution - Approving Purchase of Increased-Efficiency Air Cooling Technology and Equipment for the Redding Peaking Power Project; and Resolution - Appropriating Funds (B-130-070, E-120-150) It is the recommendation of the Electric Utility Director that Resolution No. 99-25 be adopted, a resolution of the City Council of the City of Redding authorizing the purchase of inlet air cooling equipment for the Redding Peaking Power Project from MEE Industries, Inc., not to exceed $118,400. It is recommended that Resolution No. 99-26 be adopted, a resolution of the City of Redding approving and adopting the 12th Amendment to City Budget Resolution No. 98-92 appropriating $118,410 for inlet air cooling technology for Redding Peaking Power Project. Resolution - re Mutual Assistance Agreement Between the City of Redding Electric Utility and other California Electric Utilities (E-090-160, A-050-125) It is the recommendation of the Electric Utility Director that Resolution No. 99-27 be adopted, a resolution of the City Council of the City of Redding approving entering into 02/16/99 45 California Utilities Emergency Association (CUEA) Mutual Assistance Agreement for an indefinite period. Participation may be withdrawn at any time after the effective date with 30 days prior written notice to all other parties. Resolution -Approving Lease/Purchase Agreement with LaSalle National Bank for Energy and Operational Savings Retrofit at the Convention Center; and Resolution - Appropriating Funds (C-050-050, B-130-070) It is the recommendation of the Community Services Director that Resolution No. 99-28 be adopted, a resolution of the City Council of the City of Redding authorizing the execution and delivery of an equipment lease-purchase agreement and related instruments with LaSalle National Bank pertaining to the Convention Center Energy Retrofit (Request for Proposals #3251), in the amount of$568,411. It is recommended that Resolution No. 99-29 be adopted, a resolution of the City of Redding approving and adopting the 13th Amendment to City Budget Resolution No. 98-92 appropriating $568,420 for energy retrofitting of the Convention Center. Award of Bid - Bid Schedule No. 3239, Purchase of Two Type 2 Fire Engines; and Resolution - Providing for Reimbursement from Proceeds of Subsequent Indebtedness (B-050-100, B-130-070, P-150-070, D-050-025) It is the recommendation of the Fire Chief that Bid Schedule No. 3239 for the purchase of two Type 2 fire engines, be awarded to Boise Mobile Fire Equipment, in the amount of $330,115.50. It is also recommended that Resolution No. 99-30 be adopted, a resolution of the official intent of the City Council of the City of Redding to reimburse the City for certain expenditures from the proceeds of subsequent indebtedness for the purchase of two type 2 fire engines (Bid Schedule 3239). The funding plan includes $190,000 advanced from the General Fund reserve and to be paid back once lease-purchasing is in place. Office of Traffic Safety Grant Opportunity (P-150-150, G-040, G-100-170-700) It is the recommendation of the Chief of Police that the City Council approve submission of a grant to the California Office of Traffic Safety in the amount of$51,250, with no matching fund requirement, for the purchase of equipment and software to establish a Geographic Information System-based collision records and analysis system. Resolution - Appropriating Funds for Previously Approved Project, Renovation of the Redding Plunge Public Swimming Pool; and Resolution -appropriating Funds for Previously Approved Projects, Public Art Project and Curb and Gutter Improvements at South Market and Cypress Avenue Intersection (B-130-070, P-050-700-600, S-070-100) It is the recommendation of the Administrative Services Director that Resolution No. 99-31 be adopted, a resolution of the City of Redding approving and adopting the 14th Amendment to City Budget Resolution No. 98-92 appropriating $7,350 for the development of a plan for renovation of The Plunge. It is recommended that Resolution No. 99-32 be adopted, a resolution of the City of Redding approving and adopting the 15th Amendment to City Budget Resolution No. 98-92 appropriating 1) $48,000 for curb and gutter improvements and 2) $8,000 for the public art project at South Market and Cypress Avenue intersection. Opposition to AB 83 (Cardenas) (L-040-300, L-070-100) It is the recommendation of the City Clerk that the City Council authorize the Mayor to submit letters in opposition to Assembly Bill 83, which would prevent cities from requiring 02/16/99 46 a business license, regulator license, or permit from any home-based business which has not filed a fictitious business name statement or does not regularly advertise the business at the residence. The City of Redding could potentially lose approximately $44,000 in business license revenue annually to the General Fund, with no compensation from the State. Wastewater Service for Proposed Catholic Healthcare West North State/Golden Umbrella Project on College View Drive (W-020-560) It is the recommendation of the Public Works Director that the City Council approve the construction of a private lift station and force main to serve Catholic Healthcare West North State (CHW North State). This alternative would require CHW North State to obtain easements from Simpson College, pay $1,100 per household equivalent toward the future Stillwater gravity trunk sewer, and participate in any assessment district that constructs facilities as outlined in the 1998 Stillwater Service Area Interim Sewer Master Plan. This plan will allow development of the parcel to proceed without construction of $1.5 million in improvements as outlined in the Interim Study or cause CHW North State to wait until downstream development occurs to share in the cost of improvements. Recommendation re Appointment of City Representatives to Negotiate Water Contract Renewal with the Bureau Reclamation. Contract No. 14-06-200-5272A(Buckeye) (W-030-050) It is recommended that the City Council appoint Director of Public Works August and City Attorney Wingate as representatives to negotiate for the City during the renewal negotiation process of Contract No. 14-06-200-5272A, and Assistant Director of Public Works Russell and Public Works Manager-Water Robertson as alternates. MOTION: Made by Council Member McGeorge, seconded by Council Member Pohlmeyer, 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. 99-23, 99-24, 99-25, 99-26, 99-27, 99-28, 99-29, 99-30, 99-31, and 99-32 are on file in the office of the City Clerk. RESIGNATION OF KATHY ANN ANDERSON FROM THE COMMUNITY DEVELOPMENT ADVISORY COMMITTEE (B-080-600-100) Mayor Anderson announced that Kathy Ann Anderson submitted a letter requesting Council accept her resignation from the Community Development Advisory Committee. MOTION: Made by Council Member Kight, seconded by Council Member Cibula, regretfully accepting the resignation of Kathy Ann Anderson from the Community Development Advisory Committee. The Vote: Unanimous Ayes PUBLIC HEARING-re Rezoning Application RZ-8-98 on Properties Located on Blue Bell 1111 Drive, Shadow Brook Lane, and Misty Glen Drive, by Signature Northwest (L-010-230, S-100-108) The hour of 7:00 p.m. having arrived, Mayor Anderson opened the public hearing re Rezoning Application RZ-8-98 on properties located on Blue Bell Drive, Shadow Brook Lane, and Misty Glen Drive, by Signature Northwest. The following documents are on file in the office of the City Clerk: 02/16/99 47 Affidavit of Mailing - Notice of Public Hearing Affidavit of Publication - Notice of Public Hearing Minutes of Planning Commission Meeting of January 12, 1999 City Clerk Strohmayer advised that no written protests were received. Development Services Director Swanson provided an overview of the Report to City Council dated January 29, 1999, incorporated herein by reference, regarding Rezoning Application RZ-8-98. He related that the rezoning of approximately 0.75 acres to the rear of 11 single family residential lots on Blue Bell Drive, Shadow Brook Lane, and Misty Glen Drive in the Country Heights Subdivision, Units 9, 14, and 16, is necessary as a result of two recently approved abandonments of open space (A-2-98 and A-12-98) which occurred to correct earlier inaccurate mapping of 20 percent slope areas and change in ownership from the City. It is the recommendation of the Development Services Director that the City Council approve the Negative Declarations prepared for Abandonments A-2-98 and A-12-98; offer the ordinance for first reading rezoning the properties from "U-FP" Unclassified District with Floodplain Combining District to "R-1-BFM" Single Family Residential District; and waive full reading of the ordinance. Mayor Anderson determined there was no one else present wishing to address this matter and closed the public hearing. Council Member Cibula requested that a series of applications for changes in land use on a specific piece of property be considered at one time rather than at separate Council Meetings, and Mr. Swanson concurred. MOTION: Made by Council Member Kight, seconded by Council Member McGeorge, that Council approve the rezoning application as recommended, and make the following findings regarding Rezoning Application RZ-8-98 (Abandonments A-2-98 and A-12-98): 1. Project is compatible with the Redding General Plan; 2. Project will not significantly alter existing land form; 3. Project is compatible with surrounding land use; 4. Project is compatible with the Code of the City of Redding, California; and approve the Negative Declarations authorized by the Department of Development Services. The Vote: Unanimous Ayes. Council Member Kight offered Ordinance No. 2238 for first reading, an ordinance of the City Council of the City of Redding amending Section 18.06.020 of the Redding Municipal Code relating to the rezoning of certain real property in the City of Redding (RZ-8-98). MOTION: Made by Council Member Kight, seconded by Council Member McGeorge, that the full reading of Ordinance No. 2238 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes PUBLIC HEARING - re Amendment to Redding Municipal Code adding Chapter 18.31, "GI" General Industrial District (L-010-500-050) The hour of 7:00 p.m. having arrived, Mayor Anderson opened the public hearing re amendment to the Redding Municipal Code adding Chapter 18.31, "GI" General Industrial District. The following documents are on file in the office of the City Clerk: Affidavit of Publication -Notice of Public Hearing Report to Planning Commission dated January 19, 1999 City Clerk Strohmayer advised that no written protests were received. 02/16/99 48 Development Services Director Swanson provided an overview of the Report to City Council dated February 1, 1999, incorporated herein by reference, regarding a proposed amendment to the Redding Municipal Code adding Chapter 18.31, "GI" General Industrial District. The main objective of the "GI" District is to streamline the permit process for industrial uses by eliminating the requirement for a use permit on those activities which have minimal potential for affecting surrounding property owners or the public in general by incorporating typical use permit requirements into the zoning district itself. Adoption of the "GI" District does not rezone property; however, it is staff's intent to follow adoption with proposals to rezone certain properties now zoned "M-2" Industrial District and "PI" Planned Industrial District, and some areas now zoned "M-2" District will be reserved for heavy industrial uses. It is the recommendation of the Development Services Director that City Council approve the environmental Negative Declaration; offer the ordinance for first reading adding Chapter 18.31, "GI" General Industrial, to the Redding Municipal Code; and waive full reading of the ordinance. Mayor Anderson determined there was no one else present wishing to address this matter and closed the public hearing. MOTION: Made by Council Member McGeorge, seconded by Council Member Kight, that Council approve make the following findings regarding the "GI" General Industrial District: 1. Project is compatible with the Redding General Plan; 2. Project will not significantly alter existing land form; 3. Project is compatible with surrounding land use; 4. Project is compatible with the Code of the City of Redding, California; and approve the Negative Declaration authorized by the Department of Development Services. The Vote: Unanimous Ayes. Council Member McGeorge offered Ordinance No. 2239 for first reading, an ordinance of the City Council of the City of Redding adding Chapter 18.31, "GI" General Industrial District, to the Redding Municipal Code. MOTION: Made by Council Member McGeorge, seconded by Council Member Kight, that the full reading of Ordinance No. 2239 be waived and the City Attorney be instructed to read the full title. The Vote: Unanimous Ayes STATUS REPORT ON MAJOR PROGRAMS AND PROJEC S (A-050-080) City Manager Warren announced that tonight's topic is the Turtle Bay Arboretum and Museums and the Pedestrian Bridge linking the two entities. Deputy City Manager Starman provided an update on the Turtle Bay Museums & Arboretums. He recalled that the Turtle Bay funding agreement was referred by Council to the City Attorney's office to prepare an amendment providing for funding in the amount of $400,000 per year for the next four years. Staff will bring an amendment to Council within the next four to six weeks for approval. With regard to the Pedestrian Bridge, Mr. Starman said the City Attorney is continuing the process of transferring responsibility of the bridge construction to Turtle Bay. Mr. Starman anticipated that the project will begin in June or July 1999 and be completed by Spring 2001. Mr. Starman advised that the$7 million funding agreement between Redding Redevelopment Agency(RRA)and Turtle Bay Museums and Arboretum for capital projects will be presented to the Redding Redevelopment Agency at its meeting of February 22, 1999, and funds will not be disbursed until the Pedestrian Bridge issue is resolved. The RRA funding agreement will also be considered by the City Council who will be asked to make the necessary findings as required by State law. 02/16/99 49 In response to Mayor Anderson, Mr. Starman explained that both Turtle Bay and the City will have project managers, although the largest responsibility will lie with Turtle Bay. He said that the City's responsibility is for management of federal monies which cannot be delegated to Turtle Bay. Council Member Kight requested that Economic Development be included on the City Manager's Status Report of Major Programs and Projects and opined it should be the highest priority. Mr. Warren agreed to this addition. This was an information item only and no action was required. REQUEST FOR INCREASED FUNDING FOR THE URBAN DESIGN AWARDS (B-080-600-950) City Manager Warren provided a brief overview of the Report to City Council dated February 11, 1999, relating to the Urban Design Awards. He summarized that the City Council last year partnered with the Builders' Exchange to sponsor the event and allocated a placeholder of $5,000. Staff is currently requesting $6,000 in additional funds from the Community Special Events Budget for the presentation dinner and awards. Mr. Warren explained that the dinner is anticipated to net $3,000 to $5,000 which will be returned to the fund, thereby decreasing the amount of additional funds needed to $1,000 to $3,000. It is recommended that the City Council approve increased funding in the amount of$6,000 for the Urban Design Awards from the Community Special Events Budget. MOTION: Made by Council Member McGeorge, seconded by Council Member Pohlmeyer, to increase funding for the Urban Design Awards in the amount of $6,000 from the Community Special Events Budget. The Vote: Unanimous Ayes GENERAL PLAN UPDATE CONSULTANT (G-03 0) City Manager Warren provided an overview of the Report to City Council dated February 12, 1999, regarding a request for authorization to retain a consultant to review the draft General Plan Update. Mr. Warren proposed hiring a consultant to perform the following scope of work: • Conduct an independent professional review of the General Plan • Determine if the General Plan is consistent with planning practices Statewide • Determine if the General Plan is a reasonable approach to accomplishing the community's goals or would have any undesirable effects on the community • Review the General Plan to determine if it is practical and workable • Review public comments and provide recommendations • Coordinate work with Mintier& Associates and staff It is recommended that the City Council approve staff's request to retain a General Plan update consultant for the above-noted scope of work, at a cost of no more than $12,000 utilizing $8,500 remaining from previous funds and an additional $3,500 from savings in the Planning Division's budget. In response to Council Member Kight, Mr. Warren stated that he originally contemplated a Phase II, which included providing alternative language in the General Plan Update and facilitating disagreements during the Planning Commission's review; however, he now recommends hiring the consultant only for the six tasks previously described and then determining whether to implement the next phase. He assured Council Member Kight that the timeframe for completion of the General Plan has not changed. Paul Edgren, 3347 Glen Rock Way, member of the General Plan Task Force, observed that the Task Force Committee is lopsided with members of special interest groups and that City 02/16/99 50 staff is more inclined to support the wants of the citizens. He expressed disappointment at the lack of community input in the General Plan Update process, and opined that individuals hesitate to speak for fear of repercussion or doubt they will be heard. Mr. Edgren stated that the Economic Development Corporation, Chamber of Commerce, the Board of Realtors, and the Shasta Builders Exchange hired Diaz and Associates to examine the draft document. He cautioned that the proposed General Plan may cause infringement on property rights due to its recommendations for dedicated open space, walking trails, etc., and people who buy new homes will pay the price. He remarked that many people cannot afford to buy a home in Shasta County although interest rates have dropped to historic low levels. Noting that the Committee was given a directive to think big, Mr. Edgren pointed out that no time was spent on determining the cost to implement this plan. He concluded that staff has done an excellent job preparing the plan, and he does not believe it is staff driven but that it was written from a planner's perspective. Mr. Edgren recommended the City hire a consultant with an economic background. Fran Jenkins, 2652 Sharon Street, related concerns regarding the economic consequences of implementing the proposed General Plan. She said it is important to foster the ability of young people to afford homes in Redding and to attract a diverse population. Ms. Jenkins agreed with Mr. Edgren on the importance of maintaining property rights. MOTION: Made by Council Member Cibula, seconded by Council Member Pohlmeyer, approving the request to retain a consultant to conduct an independent, professional review of the General Plan; to determine whether the General Plan is consistent with planning practices Statewide; to determine whether the General Plan is a reasonable approach to accomplishing the community's goals or would have undesirable effects on the community; to determine whether the General Plan is practical and workable in its entirety; to review public comments and provide recommendations; and to coordinate work with Mintier & Associates and staff. The Vote: Unanimous Ayes CITY TREASURER VACANCY (A-050-100, P-100-060) City Manager Warren stated that eighteen applications were received for the position of City Treasurer which was recently vacated by Peggie Linville. He related that after reviewing the applications, eight candidates were chosen for interview. On Tuesday, February 9, 1999, after interviewing the eight finalists, the oral board unanimously agreed on one applicant, Ms. Allyn Clark. City Manager Warren recommended that City Council approve the appointment of Allyn Clark to the position of City Treasurer for the remaining term through April 2000, and that the appointment be made at the March 2, 1999, City Council Meeting. Council Member Kight stated he has been impressed with Ms. Clark's capabilities and forthrightness when she served as citizen liaison to the budget process, and he is pleased with the recommendation. Mayor Anderson and Council Member Cibula concurred. MOTION: Made by Council Member Kight, seconded by Council Member Cibula, to declare its intention to appoint Allyn Clark as City Treasurer to complete the term through April 2000, and that the appointment be made at the March 2, 1999, City Council Meeting. The Vote: Unanimous Ayes CIVIC CENTER STATUS REPORT AND RECOMMENDATIONS (C-050-025) Assistant City Manager Perry provided an overview of the Report to City Council dated February 8, 1999, relating to the status report on the Civic Center and recommendations of 02/16/99 51 staff. He said that he was pleased to report construction is on time and within budget, and observed that the price per square foot is at the target level of$123.26. Mr. Perry stated that the City Council Subcommittee, consisting of Mayor Anderson and Council Member Kight, reviewed the budget, the progress to date, deductive change orders, budget needs, and the project schedule, and recommended the following items not be funded in order to keep the project in line with available resources: Common area furniture $50,000 Keyless entry system $41,000 Third floor skylights $29,260 Supplemental design services $50,000 Window coverings $100,000 Pneumatic money transfer tubes $70,000 Council chambers TV system $70,000 Fountains $100,000 Balance of landscape (8 acres) $1,000,000 Balance of demolition $200,000 Underground PG&E line on Parkview Avenue $85,000 Total: $1,925,260 Mr. Perry related that the Subcommittee felt it appropriate to fund the following items in order to reduce maintenance costs, have the building ready to be utilized, and not incur reconstruction or costly change orders later: Before July 1, 1999 Alarm system $45,575 Data network components $150,000 Upgrade to vinyl wall covering $62,121 Tile on bathroom walls $28,633 Lobby floor upgrade $20,000 Public art $20,000 Modular furniture $500,000 Exterior building up-lighting $25,000 Phase 7 - landscape $465,000 Subtotal: $1,316,329 On July 1, 1999 Phase 6 - south side reconstruction $1,008,000 Furniture - common areas $50,000 Grand opening, millennium, Christmas $10,000 Parkview/canal/walkway $80,000 Moving expenses $80,000 Bus shelters $20,000 Flag poles $10,000 Construction contingency $13,065 Subtotal: $1,271,065 Total: $2,587,394 It is the recommendation of the Assistant City Manager that City Council approve the following components of the Civic Center Project Report and recommendations of the Council Subcommittee: 02/16/99 52 1. That City Council confirm the items determined not to be funded by the Council Subcommittee. 2. That City Council confirm the addition of the items recommended to be funded by the Council Subcommittee. 3. That City Council direct staff to bring back a budget resolution appropriating $1,316,329 by means identified in the staff report, and to include the balance of funds during the 1999-2001 budget process. 4. That the Redding Redevelopment Agency be asked to fund the installation of left turns at Cypress and Athens Avenue so that Akard can be closed and the left turn lanes installed at Athens as soon as possible rather than await SB45 funding. City Manager Warren mentioned that the items recommended for addition to the project were planned for the future; however, funds have been identified for adding those at this time. Council Member Kight asked staff to explain how funds are able to be budgeted for the items added back into the project when at the City Council Meeting of February 2, 1999, $100,000 was taken from the Streets budget. Director of Administrative Services Bachman explained that the majority of the money will come from one-time funds; i.e., CalPers retirement savings, and is being used appropriately in funding this capital project. In accordance with Council's wishes, he said staff is attempting to fund the project with as little financing as possible. He reported that the bleak budget information relayed at the previous Council Meeting had nothing to do with the Civic Center because funds were already earmarked for it and not part of the budget process. Mr. Bachman assured Council that the $100,000 taken from the Streets budget will be placed back in the budget next year. Council Member Cibula stated he would be willing to vote in favor of the recommendation as long as tile and landscaping projects are reviewed by the Public Arts Committee. He proposed adding some flexibility within the budget to insure quality and artistic value as long as they remain within the budget. MOTION: Made by Council Member Kight, seconded by Council Member Cibula, to approve the funding recommendations of the City Council Subcommittee as itemized in numbers 1 through 4 above. The Vote: Unanimous Ayes TENTATIVE AGREEMENT WITH SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU)FOR HAZMAT PROGRAM (P-100-050-124, P-150-050-500) Administrative Services Director Bachman provided an overview of the Report to City Council dated February 5, 1999, relating to an agreement with the SEIU for the establishment of a HAZMAT Response Program. SEIU represents supervisors and other Water or Wastewater Utility employees who will serve as Incident Commanders. He stated that the tentative agreement with SEIU is similar to the agreement with IBEW. The annual cost of the program is estimated to be between $1500 to $1800 per year per employee, for a maximum of$5,400 for three SEIU employees. The cost of the program will be split between the Water and Wastewater Utilities. It is the recommendation of staff that the City Council approve the HAZMAT Response Program, incorporated herein by reference, as a tentative agreement between the City of Redding and SEIU. Mayor Anderson questioned why the HAZMAT Program is not being implemented on a regional basis. Mr. Bachman explained that the County has received a grant for a multiagency HAZMAT Program which the City hopes to become a part of in the future; however, the City is required by Cal-OSHA to implement this program immediately. He conveyed that this is a pilot project with a one-year term, and the program could either be extended or the City could switch to the multiagency program at the completion of the term. Mr. Bachman 02/16/99 53 assured Council that training time would not be wasted at the City level because there is always a need for HAZMAT-trained personnel. MOTION: Made by Council Member Cibula, seconded by Council Member Pohlmeyer, to approve the tentative agreement with SEIU for a HAZMAT Response Program. The Vote: Unanimous Ayes RESPONSE TO COMMENTS BY PAUL EDGREN AT JANUARY 19. 1999, CITY COUNCIL MEETING (F-205-600) Administrative Services Director Bachman recalled that Paul Edgren addressed issues at the January 19, 1999, City Council Meeting regarding the way the City deals with benefit zones and subdivisions. Mr. Bachman outlined staffs responses to the four recommendations made by Mr. Edgren. 1. Allow private CDS with interest in lieu of cash deposits, or credit interest to the benefit zone amounts on deposit. Mr. Bachman related that the City already does allocate interest to benefit zone fees collected and deposits. 2. Give interest credit from the inception of collections in the benefit zone. Mr. Bachman explained that interest is calculated and posted to each account based on the City's actual monthly pooled rate from inception; therefore, staff does not believe any further action is required regarding item 2. 3. When a developer makes improvements that are covered by a benefit zone, those funds should be made available for the developer to do the construction. Mr. Bachman stated that to ensure the work is completed and protect the City, funds are not available up front for a project and become available only when the project is completed. Staff recommends no change to this policy at this time. 4. The City should reduce the amount of surety required of developers. Section 17.28 of the Redding Municipal Code requires security for certain conditions placed on the subdivider for the project. Normally funds have not been accumulated to complete the project when the subdivider records the final subdivision map; therefore, to protect the City, the surety requirements are necessary. In order to ensure the project is completed and to protect the City, staff feels this policy should remain in effect. In response to Council Member Pohlmeyer, Mr. Bachman stated that Mr. Edgren's example of a 163% surety requirement is accurate and consistent throughout other jurisdictions. Public Works Director August stated that in his experience, the Municipal Code requirement is in line with other agencies. He related that sureties can be as high as 200% depending on the requirements of the agency, and some cities do not allow bonds but require cash. Mr. August opined that the City's policy is prudent and provides a good level of protection without unduly burdening developers. In response to Council Member Kight, Mr. August reported that the City requires the surety to guarantee improvements will be provided. The surety includes 100% cost of the improvements, the cost of taking over an unfinished project, City Attorney's time, etc., in order to guarantee the public is not at risk. City Attorney Wingate related that the subdivision map act requires the developer put up a number of different types of securities, including cash, real estate, or corporate surety bonds, in the amount of 100% of the estimated cost of completion plus other costs in order to finalize the map. Paul Edgren, 3347 Glen Rock Way, stated that his comments at the Council Meeting of February 2, 1999, regarding credit interest in benefit zones and accrual of interest were incorrect and he did not have all of the facts at the time; however, he related concerns that the developer pays into a benefit district and then must borrow money to build roads. The 02/16/99 54 developer is then required to record a map and put down as much as 163% in a surety bond in order to sell lots. By this time, Mr. Edgren stated the developer has put up 360% of the money needed to build the project. He proposed that the City not keep the benefit zone fees once the surety is place or that the City require only a letter from the bank. Mr. Edgren opined that the focus is on protecting the City and not the needs of the customer, and that the message being sent is to not do business in Redding. Mayor Anderson asked for clarification from staff whether it is correct that 3.1 times the cost of the project is required to be on deposit by the developer. Mr. Bachman stated that is true in the extremes, considering no lots have not sold and there is no income on the property. Mayor Anderson asked why, if there is adequate security in the surety, the benefit zone deposit cannot be released. Mr. Wingate stated that the benefit zone is for mitigation (AB-1600) fees to fund future capital improvement projects. When the project is finished, the developer is reimbursed for the cost of the improvement it is offset against mitigation fees. Mr. Wingate said that the money the developer borrows for the roads is from the bank and has nothing to do with the City. He related that if a developer builds a project before selling the lots, he is required to put in streets and sidewalks in order to sell lots, and the law requires a form of security, such as a corporate surety bond in the amount of 100% plus fees. He said that the developer cannot get back the benefit zone fees at that time because the work needs to be finished first. Mr. Wingate offered to look at the idea of releasing mitigation fees once the performance bond has been put up, but he opined it would modify the way the City does business and would provide minimal benefit to few individuals other than Mr. Edgren. Mayor Anderson said he believed the issue is whether it is fair to the developer, who already has funds in the benefit zone, to require a bond in the amount of 163%. Mr. Wingate stated that the surety is required by State law. Mr. August stated that the City is concerned with guaranteeing a project when dealing with a less reputable developer. If the City gives credit for development fees and the project is not completed, the bond company looks to the City for the money and may go after the properties. Council Member McGeorge recalled that there was thought given at one time to a one-step permit process and identifying preferred contractors with a reputation for fair dealing, and perhaps that could be taken into consideration. Council Member Kight agreed. City Manager Warren stated that staff would return at the March 16, 1999, City Council Meeting with a report on how the process can be made more affordable for developers. Mayor Anderson cautioned that he did not want the City to be put at risk in any way, but he thought perhaps the process could be adjusted for reputable developers. Council Member Kight suggested the Builders Exchange provide input into this matter. RECOMMENDATION TO DECLINE ADVANCING FUNDS FOR DEBT SERVICE PAYMENT - Tierra Oaks Assessment District No. 1993-1 (A-170-050-750) City Manager Warren abstained from discussing this issue and recused himself. City Attorney Wingate provided an overview of the Report to City Council dated February 9, 1999, relating to advancement of funds for the debt service payment on Tierra Oaks Assessment District No. 1993-1. On May 3, 1994, 1915 Act bonds with a total principal of $3,823,353 were sold to fund the acquisition of the district. An interest payment of $117,371.25 is due to be transferred to the Trustee at the end of this month for the March 2 02/16/99 55 interest-only payment, and at present the City has cash reserves for the assessment district totaling 73,183.02, leaving a shortfall of 44,188.23. It is recommended that the City Council decline advancing funds for the March 2, 1999, debt service payment for Tierra Oaks Assessment District No. 1993-1. MOTION: Made by Council Member McGeorge, seconded by Council Member Kight, to decline advancing funds for the March 2, 1999 debt service payment for Tierra Oaks Assessment District No. 1993-1. CLOSED SESSION Mayor Anderson announced at the hour of 8:29 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 Purchase of City surplus property at 8065 Eastside Road Negotiating parties: Phil Perry and Christie Fogle Under negotiation: Price and terms (C-070-200) Closed session pursuant to California Government Code Section 54956.9(a): CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Finley, et al. V. City of Redding, et al., Shasta County Superior Court No. 133663 (L-100) At the hour of 8:59 p.m., Mayor Anderson reconvened the meeting to regular session. No action was taken. ADJOURNMENT There being no further business, at the hour of 9:00 p.m., Mayor Anderson declared the meeting adjourned to February 20, 1999, at 8:00 a.m., in the City Hall Conference Room A, 760 Parkview Avenue, Redding, to conduct a workshop regarding Water, Wastewater, and Solid Waste rates. APPROVED % e 1v.� ayor ATTEST City Clerk / 02/16/99