HomeMy WebLinkAboutMinutes - City Council - 1999-04-06 79
City Council, Regular Meeting
Council Chambers
1313 California Street
Redding, California
April 6, 1999, 7:00 p.m.
The Pledge of Allegiance to the Flag was led by Council Member Cibula.
The Invocation was offered by Pastor Lance Jacobs of Bethel 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, Assistant Director of Public Works Russell,
Director of Development Services Swanson, Director of Electric Utility Feider, Fire Chief
Wagner, Support Services Director Kersten, Finance Officer Strong, Administrative Services
Director Bachman, Police Captain Byard, Planning Manager Keaney, Housing Program
Supervisor Buckley, Senior Planner Haddox, Associate Planner Thompson, Management
Analyst Dent, Assistant City Clerk Moscatello, and Executive Secretary Miller.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar:
111 Approval of Minutes - Regular Meeting of March 16, 1999
Approval of Payroll and Accounts Payable Register
(A-050-100-500)
It is recommended that Accounts Payable Register No. 18, check numbers 266689 through
267167 inclusive, in the amount of$4,404,338.42, for the period March 15, 1999, through
March 31, 1999, be approved and paid, and Payroll Register No. 19, check numbers 459171
through 459769 inclusive, and electronic deposit transaction numbers 59768 through 60277,
in the amount of$1,400,290.22, for the period March 7, 1999, through March 20, 1999, be
approved.
TOTAL: $5,804,628.64
Treasurer's Report - February 1999
(A-050-100-600)
Total Treasurer's Accountability - $105,741,297.76
Total City of Redding Funds, Funds Held in
Trust, and Funds of Related Entities - $165,619,286.65
ACR133 and Cash Reconciliation Report - February 1999
(F-205-095-650)
It is the recommendation of the Deputy City Manager that the ACR133 Report and the Proof
of Cash Reconciliation for February 1999 be accepted.
ORDINANCE NO. 2240 - Streamlined Procedures for the Purchasing System
(B-050-100)
It is recommended that Ordinance No. 2240 be adopted, an ordinance of the City of Redding
amending Chapter 4.20 of the Municipal Code to authorize designated City officials to enter
into contracts to purchase supplies and equipment not exceeding $100,000 and services not
exceeding $75,000 and to establish alternatives to formal bidding.
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ORDINANCE NO. 2241 -Filling Driveways and Curb-Cut Areas and Requirements Where
Grades Not Available
(S-070-100)
It is recommended that Ordinance No. 2241 be adopted, an ordinance of the City Council of
the City of Redding amending Redding Municipal Code Sections 13.12.020, Filling
Driveways and Curb-Cut Areas, and 16.06.020, Requirements Where Grades Not Available.
Property Status Report
(C-070)
It is the recommendation of the Assistant City Manager that City Council accept the Property
Status Report as of March 1999, 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.
Extension of Civic Center Construction Contract
(B-050-020, C-050-025)
It is the recommendation of the Assistant City Manager that Council approve a ten-day
extension of the construction contract with Allen L. Bender Company for Phase 2 of the Civic
Center, Bid Schedule No. 3204, secondary to delays caused by the structural steel fabricator,
and authorize staff to process a change order.
Sale of Solid Waste Utility and West Central Landfill Surplus Equipment
(B-050-100-700, B-080-650-650)
It is the recommendation of the Assistant City Manager that Council authorize staff to sell
surplus equipment as identified in the staff report and deposit the revenues in the Solid Waste
Utility's Equipment Replacement Fund and the West Central Landfill Division's Equipment
Replacement Fund respectively, at an estimated combined sales revenue exceeding $25,000.
Resolution - Declaring April 1999 as Fair Housing Month in the City of Redding
(A-050-060-600)
It is the recommendation of the Deputy City Manager that Resolution No. 99-44 be adopted,
a resolution of the City Council of the City of Redding declaring April as "Fair Housing
Month," the purpose of which is to educate the community on rights and responsibilities as
both tenants and landlords in regard to discrimination because of race, color, religion, sex, or
national origin.
Resolution - Approving Use of Tax Increment Funds for Extension of the Sacramento River
Trail within the Canby-Hilltop-Cypress Redevelopment Project
(R-030-050-310)
It is the recommendation of the Deputy City Manager that Resolution No. 99-45 be adopted,
a resolution of the City Council of the City of Redding approving the use of tax increment
funds to construct an extension of the Sacramento River Trail within the Canby-Hilltop-
Cypress project, and make the following necessary findings:
1. That the improvement is of benefit to the project area from which the funds
are derived or to the immediate neighborhood in which the project is located;
2. That no other reasonable means of financing the improvement is available to
the community; and
3. That the payment of funds for the improvements will assist in elimination of
one or more blighting conditions in the project area and is consistent with an
adopted implementation plan.
Resolution - Authorizing Risk Management Loan for Development of Clover Creek Storm
Drainage Detention Facility
(R-030-200-600, S-060-150-165)
It is the recommendation of the Deputy City Manager that Resolution No. 99-46 be adopted,
a resolution of the City Council of the City of Redding authorizing a loan of up to $2,000,000
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from the Risk Management Fund to the SHASTEC Redevelopment Project area for the
development of the Clover Creek Storm Drainage Detention Facility and approving a
repayment agreement with respect thereto, and assign the contract for consulting services
between ECORP-Sugnet and the City to the Redding Redevelopment Agency.
Assembly Bill 1482 - Animal Shelters
(L-040-300, A-130-170)
It is the recommendation of the Deputy City Manager that the City Council authorize the
Mayor to sign a letter in support of Assembly Bill 1482, which would extend the
implementation date of Senate Bill 1785 from July 1, 1999, to July 1, 2000. Senate Bill 1785
extends the number of days an animal shelter must keep a dog or cat before it euthanizes the
animal, and the extension provided by Assembly Bill 1482 would allow additional time for the
Haven Humane Society to make the preparations necessary to comply with the new law.
SHASTEC Technical Committee Report re Clover Creek Storm Drainage Detention Facility
and
Resolution - Approving Use of Tax Increment Funds from SHASTEC Redevelopment
Project
(R-030-200-600)
It is the recommendation of the Deputy City Manager that City Council make the following
findings with respect to the proposed use of Redevelopment funds for the Clover Creek
Storm Drainage Detention Project:
1. That the improvements are of primary benefit to the project area from which
the funds are derived or to the immediate neighborhood in which the project
is located;
2. That no other reasonable means of financing the improvements are available
to the community; and
3. That the payment of funds for the improvements will assist in the elimination
of blight within the project area and is consistent with the adopted
Implementation Plan for the project area.
It is recommended that Resolution No. 99-47 be adopted, a resolution of the City Council of
the City of Redding approving the use of tax increment funds in the amount of up to
$2,000,000 from the SHASTEC Redevelopment Project area to assist with the development
of the Clover Creek long-term storm drainage detention facility, and making the findings with
respect thereto.
Offer to Donate Land at 2180 Skyline Drive to the City - by B.C. Bingham
(C-070-010)
It is the recommendation of the Assistant City Manager that City Council decline the offer of
B.C. Bingham to donate property at 2180 Skyline Drive to the City secondary to the
property's nominal value and absence of a definite use.
Request to Assign the 1999 Single-Family Private Activity Bond "Fair Share" Allocation to
the California Rural Home Mortgage Finance Authority (CRHMFA)
(R-030-100-400)
It is the recommendation of the Deputy City Manager that City Council agree to assign the
City's 1999 California Debt Limit Allocation Committee's (CDLAC) tax-free single-family
bonding authority allocation in the amount of$429,176 to CRHMFA for use on its home
purchase program targeting low to moderate income home buyers within California counties,
including Shasta County, and authorize a letter reflecting that assignment be sent to
CRHMFA and CDLAD.
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Rejection of Bids for Cellular Telephone Service - Bid Schedule No. 3248 and
Authority to Negotiate Contract with Airtouch, AT&T, and Nextel
(B-050-100, C-175-825)
It is the recommendation of the Support Services Director that City Council authorize staff
to reject all proposals submitted in response to Bid Schedule No. 3248, Cellular Telephone
Service, and to contract individually with Airtouch, AT&T, and Nextel for cellular services
as required by individual departments.
Resolution -Revising Legal Description and Map for Abandonment A-6-94, Portion of Old
Alturas Road Right-Of-Way, Parcel 1, and
Resolution - Revising Legal Description and Map for Abandonment A-6-94, Portion of Old
Alturas Road Right-Of-Way, Parcel 2
(A-010-100)
It is the recommendation of the Development Services Director that Resolution No. 99-48
be adopted, a resolution of the City Council of the City of Redding amending the legal
description and sketch in Resolution 98-74 (Abandonment A-6-94 - Parcel 1).
It is recommended that Resolution No. 99-49 be adopted, a resolution of the City Council of
the City of Redding amending the legal description and sketch in Resolution 98-75
(Abandonment A-6-94 - Parcel 2).
Resolution -Releasing Abatement Proceedings on Property at 2774 Akard Avenue, Owned
by Gerald L. Knighten
(A-030-070)
It is the recommendation of the Development Services Director that Resolution No. 99-50
be adopted, a resolution of the City Council of the City of Redding releasing the abatement
proceedings on property located at 2774 Akard Avenue subsequent to abatement of the
public nuisance by the current owner.
Resolution -Releasing Abatement Proceedings on Property at 5230 East Bonnyview Road,
Owned by Ronald Hackler
(A-030-070)
It is the recommendation of the Development Services Director that Resolution No. 99-51
be adopted, a resolution of the City Council of the City of Redding releasing the abatement
proceedings on property located at 5230 East Bonnyview Road subsequent to abatement of
the public nuisance by the current owner.
Resolution - Releasing Abatement Proceedings on Property at 929 Fell Street, Owned by
Albert J. Foley
(A-030-070)
It is the recommendation of the Development Services Director that Resolution No. 99-52
be adopted, a resolution of the City Council of the City of Redding releasing the abatement
proceedings on property located at 929 Fell Street subsequent to abatement of the public
nuisance by the current owner.
Resolution -Releasing Abatement Proceedings on Property at 4082 Fig Tree Lane, Owned
by Kimberly Vogt
(A-03 0-070)
It is the recommendation of the Development Services Director that Resolution No. 99-53
be adopted, a resolution of the City Council of the City of Redding releasing the abatement
proceedings on property located at 4082 Fig Tree Lane subsequent to abatement of the public
nuisance by the current owner.
Resolution -Releasing Abatement Proceedings on Property at 2515 Howard Drive, Owned
by Robert A. Spano and Carla Showalter
(A-030-070)
It is the recommendation of the Development Services Director that Resolution No. 99-54
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be adopted, a resolution of the City Council of the City of Redding releasing the abatement
proceedings on property located at 2515 Howard Drive subsequent to abatement of the public
nuisance by the current owner.
Resolution -Releasing Abatement Proceedings on Property at 2954 Lanning Avenue, Owned
by Rocky Venti
(A-030-070)
It is the recommendation of the Development Services Director that Resolution No. 99-55
be adopted, a resolution of the City Council of the City of Redding releasing the abatement
proceedings on property located at 2954 Lanning Avenue subsequent to abatement of the
public nuisance by the current owner.
Resolution -Releasing Abatement Proceedings on Property at 891 Locust Street, Owned by
Evelyn Giordano
(A-030-070)
It is the recommendation of the Development Services Director that Resolution No. 99-56
be adopted, a resolution of the City Council of the City of Redding releasing the abatement
proceedings on property located at 891 Locust Street subsequent to abatement of the public
nuisance by the current owner.
Resolution - Releasing Abatement Proceedings on Property at 1023, 1025, and 1027
Parkview Avenue, Owned by Robert M. Netherland
(A-030-070)
It is the recommendation of the Development Services Director that Resolution No. 99-57
be adopted, a resolution of the City Council of the City of Redding releasing the abatement
proceedings on property located at 1023, 1025, and 1027 Parkview Avenue subsequent to
abatement of the public nuisance by the current owner.
Resolution -Releasing Abatement Proceedings on Property at 5574 Westside Road, Owned
by Jim Pierce and Chico Sprinkler, Inc.
(A-030-070)
It is the recommendation of the Development Services Director that Resolution No. 99-58
be adopted, a resolution of the City Council of the City of Redding releasing the abatement
proceedings on property located at 5574 Westside Road subsequent to abatement of the
public nuisance by the current owner.
Standard License Agreement Form for Display of Artwork at Redding Municipal Airport
(A-070-080, A-090-100)
It is the recommendation of the Development Services Director that City Council approve the
License Agreement for use as a standard agreement, permitting artists to display their work
at Redding Municipal Airport, and authorize the Airports Manager to execute the agreement.
Resolution - re Abandonment Application A-3-99, 3937 Teton Drive, and Set Public
Hearing, by David Yorton
(A-010-040)
It is the recommendation of the Development Services Director that Resolution No. 99-59
be adopted, a resolution of the City Council of the City of Redding declaring its intention to
abandon a portion of a private open space easement located on a single family residential lot
at 3937 Teton Drive (A-3-99), and that a public hearing be set for May 18, 1999.
Senate Bill 887 - Group Home Foster Care Process
(L-040-3 00, P-150-150)
It is the recommendation of the Chief of Police that City Council support Senate Bill 887,
which establishes new procedures to assist in the detection of fraud in foster care facilities,
holding group home providers more accountable for their services, and requiring the State
Department of Social Services to provide more oversight of the foster care industry.
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Resolution Accepting Streets - Acceptance of Improvements for Silver Creek Subdivision,
Unit 1 (S-5-97), by Redding Properties (East Side of Shasta View Drive, North of Rancho
Road)
(S-070-230 & S-101-025)
It is the recommendation of the Director of Public Works that Resolution No. 99-60 be
adopted, a resolution of the City Council of the City of Redding accepting for maintenance
and operation Western Oak Drive in Unit 1 of the Silver Creek Subdivision.
It is also recommended that City Council accept the improvements in Silver Creek
Subdivision as satisfactorily completed and that the City Clerk be instructed to return the
securities to the developer.
Assembly Bill 357 re Railroad Grade Separation Funding
(L-040-300, T-100-300)
It is the recommendation of the Director of Public Works that City Council support Assembly
Bill 357, increasing the amount budgeted for statewide allocation to grade separation projects
from $15,000,000 to $60,000,000, and direct staff to prepare a letter of support for the
Mayor's signature to submit to Assembly Member Calderon and a companion letter to
Assemblyman Dickerson and Senator Johannessen requesting their support.
Possible Use of Eminent Domain for Sunnyhill Lane Widening - re Use Permit UP-33-96,
5002 Bechelli Lane, by Eagle Investments
(L-010-390, C-070-010)
It is the recommendation of the City Attorney that City Council authorize eminent domain
proceedings for Sunnyhill Lane adjacent to 5002 Bechelli Lane, Use Permit UP-33-96, if
necessary in order to complete street improvements required by UP-33-96. The property
owners of the single parcel involved have not indicated an unwillingness to sell the right-of-
way for the street widening, but there has been no agreement as to price.
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
Ordinances Nos. 2240 and 2241 and Resolution Nos. 99-44, 99-45, 99-46, 99-47, 99-48, 99-
49, 99-50, 99-51, 99-52, 99-53, 99-54, 99-55, 99-56, 99-57- 99-58, 99-59, and 99-60 are on
file in the office of the City Clerk.
PUBLIC HEARING - Resolution re Abandonment Application A-1-98, Portion of Canyon
Creek Road and Portion of Westside Road Right-Of-Way, by City of Redding
(A-010-100)
The hour of 7:00 p.m. having arrived, Mayor Anderson opened the public hearing re
Abandonment Application A-1-98. The following documents are on file in the office of the
City Clerk:
Affidavit of Mailing - Notice of Public Hearing
Affidavit of Publication - Notice of Public Hearing
Planning Commission recommendation dated December 1, 1998
City Clerk Strohmayer advised that no written protests were received.
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Development Services Director Swanson provided an overview of the Report to City Council
dated March 18, 1999, incorporated herein by reference, regarding Abandonment Application
A-1-98. He stated that the abandonment is a component of the Westside Road realignment
project fostered by the Redding Redevelopment Agency(RRA) which will result in realigning
Westside Road to a point west of the current location and directly south of the Railroad
Avenue and Buenaventura Boulevard intersection. Mr. Swanson conveyed that upon
completion of the project, this section of road will no longer be needed for public street
purposes, but will continue to be needed for access to Fire Station No. 3 and private
businesses until the realignment is completed.
It is the recommendation of the Development Services Director that City Council approve the
negative declaration for Abandonment Application A-1-98 and adopt a resolution ordering
vacation of portions of Westside Road and Canyon Creek Road south of the intersection with
Buenaventura Boulevard.
The Planning Commission recommended that the abandonment be subject to completion of
the realignment project and retention of a public-service easement for utility purposes over
the entire area of abandonment. Additionally, improvements to Buenaventura Boulevard,
consisting of curb, gutter, tie-in paving, and a median, will be necessary to complete the street
and close off access to the abandoned street sections.
In response to Mayor Anderson's request for funding information on Buenaventura
Boulevard improvements, Mr. Swanson explained that improvements were allotted in the
RRA's 1999-2000 budget, although complete funding for the construction portion has not
been identified, and the actual abandonment will not take place until funding is guaranteed.
Associate Planner Thompson indicated that the terms and conditions of the disposition
agreement between the RRA and Jack and Marti Ginder disclose the property owner's
responsibility for improvements along the property line.
Mr. Swanson assured Council Member Cibula that Canyon Creek Road will remain open
during construction and any action taken tonight will not affect access to Fire Station No. 3.
Council Member Cibula asked for clarification of the City's policy on abandonments in
analyzing future property needs. Mr. Swanson disclosed that, in this case, the abandonment
is part of a master plan to reconstruct a dangerous intersection, the genesis of which was a
mitigation measure from an environmental impact report prepared for the Buenaventura
Boulevard Plan Line and Traffic Study. He specified that this is a unique circumstance
whereby the City has proactively taken abandonment and acquisition actions and parcel
reconfiguration actions necessary to realign the street network.
Council Member Cibula indicated there should be a specific policy on determining the City's
property needs, and he asked if staff is certain the area will not be of need to the City in the
future. Mr. Swanson said that an in-depth planning process was completed in the mid-1980s
and the project remains viable.
Mayor Anderson asked whether this abandonment was part of a negotiation for
reconfiguration and at what point is the property sold and not given away. Mr. Starman
stated that the abandonment was a part of a negotiated agreement to realign the intersection.
Mayor Anderson determined there was no one present wishing to address this matter and
closed the public hearing.
MOTION: Made by Council Member Kight, seconded by Council Member McGeorge, that
Resolution No. 99-61 be adopted, a resolution of the City Council of the City of Redding
ordering vacation of portions of Westside Road and Canyon Creek Road, generally located
south of the intersection with Buenaventura Boulevard, and to make the following findings
regarding Abandonment Application A-1-98:
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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. 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. 99-61 is on file in the office of the City Clerk.
CONSTRUCTION OF PAT ANDERSON MEMORIAL AT THE CIVIC CENTER
(C-050-025)
Assistant City Manager Perry provided an overview of the Report to City Council dated
March 16, 1999, relating to the Rotary Club's offer to construct a memorial to former Mayor
Pat Anderson at the new Civic Center. He stated that the space for the memorial was
previously set aside and only minimal construction requirements for the City remain, including
forming a border at the site, running water and electric lines, and reviewing and approving
plans.
It is the recommendation of the Assistant City Manager that City Council accept the offer of
the Rotary Club to construct a memorial to Pat Anderson at the Civic Center.
Mayor Anderson deferred to the City Attorney to determine if there was a conflict of interest,
as several Council Members and staff are members of the Rotary Club. City Attorney
Wingate assured Mayor Anderson that no conflict exists.
MOTION: Made by Council Member McGeorge, seconded by Council Member Kight, to
accept the offer of the Rotary Club to construct a memorial to Pat Anderson at the new Civic
Center. The Vote: Unanimous Ayes
Mayor Anderson directed staff to send a letter thanking the Redding Rotary Club for their
gracious offer.
CITY COUNCIL WORKSHOP - re Solid Waste, Sewer, and Water Rate Increases
(S-020-500, W-020-590, W-030-400)
City Manager Warren provided an overview of the Report to City Council dated March 31,
1999, relating to scheduling a public hearing and City Council workshop to discuss solid
waste, sewer, and water rate increases. Mr. Warren asked Council to select a convenient time
to hold the workshop, and whether it would be preferable to hold the public hearing and
workshop concurrently or separately.
It was a consensus of Council to schedule a public hearing and workshop concurrently,
tentatively set for April 27, 1999, at 7:00 p.m., subject to further confirmation by Council, to
discuss solid waste, sewer, and water rate increases.
MONTHLY FINANCIAL REPORT - Electric Utility
(B-130-070)
Electric Utility Director Feider provided an overview of the Report to City Council dated
March 26, 1999, incorporated herein by reference, regarding the Electric Utility's Monthly
Financial Report for February 1999. Retail revenue through February 1999 is on target with
expectations, and wholesale power sales to date are 22.1%, or$4,486,390, above projections.
Total operating revenue is 8.9%, or $6,108,449, above plan, and operating revenue after
energy costs is 16.9%, or $4,748,233, above projections.
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Mr. Feider advised that the total cost of electricity through February 1999 was $1,360,215
above projections. The Utility's earnings before interest, depreciation, and amortization were
24.2%, or $5,324,465, above the projected year-to-date level. The current outstanding
balance for the Debt Reduction Program is $139.9 million.
It is the recommendation of staff that the report be accepted as presented.
MOTION: Made by Council Member Kight, seconded by Council Member Cibula, to accept
the Electric Utility's Monthly Financial Report and the Electric Utility Industry Activities
Update for February 1999 as presented. The Vote: Unanimous Ayes
MONTHLY FINANCIAL REPORT - General Fund
(B-130-070)
Administrative Services Director Bachman highlighted the Report to City Council dated
March 25, 1999, incorporated herein by reference, concerning the General Fund's Monthly
Financial Report for February 1999. Total revenue to date$23.5 million, or $282,136 (1.2%)
above staff's original cash flow estimate. Expenditures to date total $25,315,571, or
$1,981,614 (7.3%), below staff's original cash flow projection.
It is the recommendation of staff that the City Council accept the Monthly Financial Report
for February 1999.
MOTION: Made by Council Member Kight, seconded by Council Member Cibula, to accept
the General Fund's Monthly Financial Report for February 1999. The Vote: Unanimous Ayes
RECOMMENDATION - re Paul Edgren's Request Relative to Sureties Required for
Recording Subdivision Final Maps
(S-100)
Assistant Director of Public Works Russell provided an overview of the Report to City
Council dated April 6, 1999, relating to staffs response and recommendation to Paul
Edgren's comments at the January 19, 1999, City Council Meeting referring to sureties
required for recording final maps and bond requirements.
Mr. Russell noted that the City's bond requirements are in the midrange of California
Government Code (Subdivision Map Act) requirements. As far as the City reducing or
waiving security for "reputable" developers, he observed that creating such a list may be
interpreted as discriminating against area newcomers, thereby opening the door to litigation.
Mr. Russell explained that the requirement for developers to provide additional security for
Traffic-Impact-Fee-funded or benefit-district-funded improvements already secured as part
of a final map/subdivision agreement is typical of a public works contract, in which a
contractor submits a bond to guarantee completion of the project while fronting the cost of
construction. He indicated there are different types of security which may lessen the burden
on the developer, such as submitting a letter of credit or entering into a
developer/reimbursement agreement with the City.
It is the recommendation of staff that City Council retain the existing system of security
requirements for recording final maps and collection of Traffic Impact Fees.
Paul Edgren, 9200 Placer Road, reviewing a letter submitted to Council, stated that
developer-paid funds in a benefit district should be available to use for construction costs, and
should be deducted from the cost of the project prior to calculating the bonding amount. He
conveyed that the City's 163 percent bonding requirement contradicts the General Plan which
calls for encouraging development. Mr. Edgren opined that many recent projects have had
financial problems with developers losing projects or going broke due to high surety
requirements, and said that less established developers are attracted to cities with fewer
requirements. He suggested that developers with a positive history of dealing with the City
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be recognized and regarded as less of a risk. He indicated that City staff has been
discouraged from taking risks with developers, and that development is not encouraged
because the policy of putting the customer first is not followed. Mr. Edgren said that his
suggestions are not as much for the benefit of his company, but to promote new developers,
and that the City should foster more spirit of cooperation and encouragement.
Mayor Anderson pointed out that Mr. Edgren's suggestions would seem to benefit the
established developer rather than new ones because they would be required to purchase a
larger bond.
Council Member McGeorge recalled that the City implemented an empowerment policy
which gave City employees flexibility in working with customers. Mr. Starman advised that
the program is still in effect although not necessarily active, and Council Member McGeorge
suggested rejuvenating the practice.
In response to Council Member Kight, who asked whether the City actually requires a bond
for money already on deposit, City Attorney Wingate explained that the City requires different
types of securities, and while there is no provision in the Municipal Code authorizing the use
of special benefit district funds as a portion of the required bond, the ordinance could be
amended to allow this.
City Manager Warren said he was comfortable with Mr. Edgren's suggestion that benefit
district sureties be deducted from the cost of a project prior to calculating the bonding
amount. He also concurred that bonding requirements should be reduced for reputable
developers.
Council Member McGeorge recalled that the City previously looked for ways to reward
reputable builders and he asked staff to continue that search. He indicated that "preferred
builders" could be recognized with less red tape in the construction and planning process.
Council Member Kight said it would make sense to improve the process without posing any
risk to the City.
Mayor Anderson agreed with Council Member McGeorge, and he concurred that developer-
paid funds in a benefit district should be deducted from the cost of the project prior to
calculating the bonding amount. Mayor Anderson pointed out that "reputable developers"
have had financial difficulties on projects in the past and the City should not be exposed to
such risk. Council Member Pohlmeyer and Council Member McGeorge concurred with
Mayor Anderson.
In response to Council Member Kight, Mr. Russell said that the City applies a 10 percent
contingency to a project estimate, which is provided by the developer. He explained that the
majority of work is not done at prevailing wage, and if the City must complete the job, it costs
more than 100 percent. He indicated that this contingency may be eliminated.
Mayor Anderson remarked that the City should be safeguarded but not overly secure.
It was a consensus of Council that staff return with an ordinance implementing Mr. Edgren's
suggestion that developer-paid funds in a benefit district be deducted from the cost of the
project prior to calcuating bond amount, and to determine whether it is reasonable to lower
the City's bonding requirements of 163% and provide justification. Council Member Cibula
indicated the amount should be fair and equitable to developers.
In response to Council Member Pohlmeyer, Mr. Wingate explained that the occurrence of
requiring a bond when money is already on deposit only occurs when a developer wants to
sell lots before completing a subdivision. It does not apply if the subdivision is completed and
subsequently a map is recorded.
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ORAL COMMUNICATIONS
(C-050-025)
Fran Jenkins, 2652 Sharon Street, thanked the Redding Rotary Club for its offer to construct
the Pat Anderson Memorial, and City Council for approving the project. She expressed a
desire to aid the funding process by speaking to groups who have indicated they would like
to make donations, and she hoped that the Rotary would contact her. Ms. Jenkins stated that
Pat Anderson was a wonderful Council Member and a gallant lady.
CLOSED SESSION
At the hour of 8:01 p.m., Mayor Anderson announced that Council will adjourn to closed
session to discuss the following:
Closed session pursuant to California Government Code Section 54957:
PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: City Manager
(A-050-080)
At the hour of 8:54 p.m., Mayor Anderson reconvened the meeting to regular session. Mayor
Anderson stated that it was the consensus of Council to continue the City Manager's 1998
total compensation package with the following changes and effective dates:
January 1, 1999 Pay for Performance increase 1%
January 1, 2000 Pay for Performance increase 1%
January 1, 2001 Pay for Performance increase 2%
ADJOURNMENT
There being no further business, at the hour of 8:55 p.m., Mayor Anderson declared the
meeting adjourned.
APPROVED
/
ayor
ATTEST
c I
CaaiLecfr—
Assistant City Cler
04/06/99