HomeMy WebLinkAboutMinutes - City Council - 1979-07-09 174
City Council, Adjourned Regular Meeting
Police Dept. & Council Chambers Bldg.
Redding, California
July 9, 1979 12 :00 Noon
The meeting was called to order at 12:00 Noon by Mayor Demsher with the
following Council Members present: Fulton, Gard, Kirkpatrick, and Demsher.
Absent: Council Member Pugh
Also present were Assistant City Manager Courtney, City Attorney Murphy,
Public Works Director Arness, Planning and Community Development Director
Harris, Public Works Superintendent Galusha, Associate Civil Engineer
Mathis, and City Clerk Brayton.
SYNOPSIS RE PROPOSED ORDINANCES AND RESOLUTION - Sewer, Water, etc.
At the request of Mayor Demsher, City Attorney Murphy reviewed the
ordinances and resolution being submitted for consideration by Council
today. He stated that the primary cause for the timing of this package
is the grant and construction of the Redding Regional Sewer Plant. In
order to continue without any holdup in the transfer of funds from the
grantor to the City, so the City may make payments promptly to the con-
tractors who are doing the construction, it is necessary that the City
have operational and financial plans for the sewer plant that are
satisfactory to the grantor, the Federal Government. The ordinances
pertaining to sewers being presented today meet those requirements, and
it is necessary that they be adopted so as to be effective before September
1, or it would delay the payments from the Federal Government to the City.
It was felt that it would be appropriate to simultaneously submit a water
ordinance which would accomplish a cleanup of our water chapter of the
Code whereby portions of the water operation would be removed from the
construction tax ordinance at the same time that the sewer tax was removed.
The proposed construction tax ordinance now provides for three elements:
capital improvement, storm drainage, and electric. This ordinance also
provides for capital improvement credits, which is a feature that is not
included in the present construction tax ordinance.
Mr. Murphy noted that there will no longer be a sewer and water element
in the construction ordinance. He stated that it is proposed to go back
to the traditional philosophy of cost of service, and the new ordinances
include $400 sewer and $400 water cost-of-service fees and gross-acreage
charges. The Public Works Department and Finance Department together have
worked long and hard in computing what it has cost the City of Redding,
over the years, to provide water and sewer service to a single-family dwelling.
It is felt those costs are properly represented in the ordinances. Major
industrial users are defined, and provisions have been made for sampling
and testing at their expense for volume for suspended solids, etc. , so that
proper charges can be worked out in those areas.
Mr. Murphy proposed that an executive session be held at the regular Council
meeting on July 16 to consider the status of pending litigation. He noted
that Attorney Len Wingate would be present, and said that Council could
make its final decision as to how to proceed, based upon the information
at hand at that time.
Mr. Murphy concluded his synopsis, noting that these ordinances and resolution
are an integrated package and that action should be taken on all documents
at the same time.
ORDINANCE - Water
MOTION: Made by Councilwoman Gard, seconded by Councilman Fulton that Council
makes the following findings regarding Amendment of Chapter 14.08 of the
Redding Municipal Code pertaining to water service:
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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, ratifies the Negative Declaration approved by the Board of Administrative
Review on July 3, 1979. The Vote: Unanimous Ayes
Councilwoman Gard offered Ordinance No. 1453 for first reading, an ordinance
of the City Council of the City of Redding amending Chapter 14.08 of the Redding
Municipal Code by repealing Sections 14.08.010, 14.08.020, 14.08.030, 14.08.040,
14.08.050, 14.08.070, 14.08.080, 14.08.090, 14.08.100, 14.08.110, 14.08.120,
14.08.130, 14.08.140, 14.08.150, 14.08.160, 14.08.170, 14.08.190, 14.08.200,
14.08.210, 14.08.220, 14.08.230, 14.08.240, 14.08.250, 14.08.270, 14.08.280,
14.08.300, 14.08.320, 14.08.340, 14.08.350, 14.08.360, 14.08.870, and 14.08.380,
and substituting therefor new Sections 14.08.010, 14.08.020, 14.08.030,
14.08.040, 14.08.050, 14.08.070, 14.08.075, 14.08.080, 14.08.100, 14.08.110,
14.08.120, 14.08.130, 14.08.140, 14.08.150, 14.08.160, 14.08.170, 14.08.190,
14.08.200, 14.08.220, 14.08.230, 14.08.240, 14.08.250, 14.08.280, 14.08.300,
14.08.320 14.08.340, 14.08.350, 14.08.360, 14.08.370, and 141.08.380, per-
taining to water.
ORDINANCE - Sewer Provisions, Fees and Charges
MOTION: Made by Councilwoman Gard, seconded by Councilman Kirkpatrick that
Council makes the following findings regarding Amendment of Chapter 14.12
and 14.16 of the Redding Municipal Code pertaining to sewer provisions, fees
and charges:
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 Reddin , California,
and ratifies the Negative Declaration approved by the Board of Administrative
Review on July 3, 1979. The Vote: Unanimous Ayes
Councilwoman Gard offered Ordinance No. 1454 for first reading, an ordinance
of the City of Redding amending the Redding Municipal Code by repealing
Chapter 14.12 entirely, and by repealing Sections 14.16.010, 114.16.020,
14.16.030, 14.16.040, 14.16.050, 14.16.060, 14.16.070, 14.16.080, 14.16.090,
and 14.16.110, and substituting therefor new Sections 14.16.010, 14.16.015,
14.16.020, 14.16.025, 14.16.030, 14.16.035, 14.16.040, 14.16.645, 14.16.050,
14.16.055, 14.16.060, 14.16.065, 14.16.070, 14.16.075, 14.16.680, 14.16.085,
14.16.090, 14.16.095, 14.16.110, 14.16.170, 14.16.180, 14.16490, 14.16.200,
14.16.210, 14.16.220, 14.16.230, 14.16.240, 14.16.250 and 14.16.260, pertaining
to sewer provisions, fees and charges.
RESOLUTION - Redding Regional Wastewater System Sewer Rate Study
MOTION: Made by Councilwoman Gard, seconded by Councilman Kirkpatrick that
Council makes the following findings regarding a resolution approving and
adopting the Redding Regional Wastewater System Sewer Rate Study:
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 Reddin , California,
and, ratifies the Negative Declaration approved by the Board of Administrative
Review on July 3, 1979. The Vote: Unanimous Ayes
Resolution
MOTION: Made by Councilwoman Gard, seconded by Councilman Fulton that
Resolution No. 79-112 be adopted, a resolution of the City ColuIncil of the
City of Redding approving and adopting the recommendations cohtained within
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the Redding Regional Wastewater System Sewer Rate Study dated June 29, 1979.
Voting was as follows:
Ayes: Council Members - Fulton, Gard, Kirkpatrick, and Demsher
Noes: Council Members - None
Absent: Council Members - Pugh
Resolution No. 79-112 is on file in the office of the City Clerk.
ORDINANCE - Construction Taxes
MOTION: Made by Councilwoman Gard, seconded by Councilman Kirkpatrick that
Council makes the following findings regarding amendment of Chapter 16.42
of the Redding Municipal Code by repealing Section 16.42.060 and substituting
therefor a new Section 16.42.060, pertaining to construction taxes:
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, ratifies the Negative Declaration approved by the Board of Administrative
Review on July 3, 1979. The Vote: Unanimous Ayes
Councilwoman Gard offered Ordinance No. 1455 for first reading, an ordinance
of the City Council of the City of Redding amending Chapter 16.42 of the
Redding Municipal Code by repealing Section 16.42.060 and substituting therefor
a new Section 16.42.060 pertaining to construction taxes.
Mayor Demsher asked if there was anyone in the audience who wished to speak
with respect to the aforementioned ordinances and resolution.
Ken Murray, 1758 Manchester, stated that he is neither pro nor con with
respect to the ordinances but is concerned for the orderly development of
our community. In his opinion, Council is revisiting a year ago last month
when the construction tax ordinance was adopted, and is now in a hurry to
do something prior to September 1 for a problem that has existed for several
months. He noted that at the time the construction tax ordinance was intro-
duced, it was felt that those fees were absolutely necessary to guarantee
orderly development of our community. Now the thinking that prompted that
ordinance that was vitally necessary a year ago is turned around. Mr.
Murray said he understands the urgency with regard to adoption of the
ordinance pertaining to the Redding Regional Sewer Plant because of funding
from the Federal Government; however, there are apparently no similar problems
attached to those ordinances regarding water. He said that he realizes a lot
of work has gone into developing these ordinances but the costs, justifi-
cations and formulas used are an area of great concern to him. He feels
this information should be made public for discussion and scrutiny so that
a dialogue can be developed as to what is transpiring.
Mr. Murray further stated that the substantiation given a year ago for
development of the construction tax ordinance was to promote orderly develop-
ment without a moratorium. Now the possibility of a moratorium is raised
again and the main question is, how do we develop our community in an orderly
manner. Mr. Murray said he is concerned that these questions have not been
adequately addressed. He feels the negative declaration was adopted by BAR
without considering the merits of the ordinances whatsoever and that the
question of what will happen five years from now should be considered. Mr.
Murray urged the Council not to act upon the ordinances in a hurried manner
but rather consider the impacts they will create and answer the question -
what are we going to do for tomorrow? He feels Council is racing along too
fast again and there hasn't been sufficient time to consider the impacts.
He urged withdrawing or delaying consideration of these ordinances in order
to allow for full public dialogue. He feels future system expansion should
be considered for the future of the community.
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City Attorney Murphy commented on Mr. Murray's request that Council delay
consideration of these ordinances. He noted that Mr. Murray realizes the
need for going ahead on the sewer ordinances and the resolution pertaining
to the sewer rate study; however, he pointed out that these documents
comprise an integrated package and either all or none must be adopted at
the same time or it could result in double taxes or fees being levied. He
acknowledged that the adoption of the 'ordinances would have the effect of
reducing the development fees for sewer and water although that is not the
intention, the intention being to institute a uniform method of collection.
Mr. Murphy responded that we don't know the future of the community at this
time. He referred to the Gann Initiative, pending legislation before the
State Legislature that could have a profound effect on the City, and the
full impact of Proposition 13 which is not known at this time. Mr. Murphy
said that the capacity of the utility 'systems and a source of revenue to
deal with these problems will be an issue in the future. He pointed out
that a tax cannot be imposed without 2/3 vote of the people. He said he is
not guaranteeing that the package presented to Council will save the City
from legal attack and problems in the ,future, but assured those present
that the staff and Council Committee have worked diligently to submit what
they feel is a reasonable approach tolthe issue.
Mr. Murray responded that he feels itlis important to recognize now that
something must be done with regards to the provision of sewer service in
the future because there will not be time to consider it later. He urged
Council to appoint a couuuittee to study and make a recommendation as to
what direction the City should take. He feels that elimination, of the
construction tax and not providing for future system expansion is not the
proper way to proceed. He said that maybe a tax should be proposed and
submitted to the people for a vote. His ultimate desire is that the City
get a handle on what it intends to do 'for orderly development in, the future
and then proceed.
Mayor Demsher noted that the City is reacting to the challenges of the
construction taxes, of Proposition 13! the Gann Initiative, and the
ability to provide the services to an expanding community, and said that
ultimately the issue of development fees may have to go to an election.
He said that the vote of the people would reveal the attitude of the
community towards growth and whether it is willing t meet the financial
demands of that growth.
Fred Hilger, Humboldt Financial Services, stated that a public body has
absolutely no justification for any action except for reaction to a public
need and he feels the City is reacting town observed need. He does not
think this is the appropriate type oflissue to submit to the voters in an
election as a means to get an expression of growth. Since a 2/3 majority
vote is required to pass an issue, 60% could favor the issue and' 40% could
oppose it and the issue would not pass.
Mr. Hilger said he feels a great deal of study, time, and thought have gone
into the preparation of these ordinances and resolution. He said he has
read the documents and endorses the guarantee that t e fee or tax imposed
will be used solely to fund the purposes for which it levied. He noted
that the $400 sewer fee is based on current costs as developed by staff,
and the ordinance provides for annual revision so that if sufficient revenue
is not derived in a one or two-year period, the fee can be increased to
insure orderly growth. He commended staff for this feature noting that it
doesn't cast anything in concrete. He noted that the ordinanceslmake pro-
vision for recapture of up-front costs by the devel per. Mr. Hilger said
he is speaking only on behalf of Humboldt Financial Services, but has
discussed the ordinances with several builders and developers in Redding.
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He said that this group, representing probably 85% of the developers in
the Redding area, endorses these documents which will avoid the necessity
of a moratorium and will fairly and equitably provide services to the
homes and businesses being constructed.
Councilwoman Gard concurred with the statements made by Mr. Murray that
the City is not facing future growth and noted that the City's ability
to pick up the slack is decreasing constantly. She believes that the
public is well aware of what has happened to public finances and it is
her opinion that the situation will not get better but will catch up with
the City eventually. Mayor Demsher concurred, stating that the economic
study indicated that the City would not break even with the fees imposed
by the previous ordinance and he also foresees a future deficit.
Councilman Kirkpatrick stated that the City needs to be thinking about its
future problems, not only in relation to water and sewer, but in other areas
as well. He commented that we often put bandaids on our problems, when, in
fact, major surgery is needed.
Mayor Demsher thanked Messrs. Murray and Hilger for their comments.
APPOINTMENT - Traffic and Parking Commission
MOTION: Made by Councilwoman Gard, seconded by Councilman Kirkpatrick approving
the appointment of Kelly Combs as a member of the Traffic and Parking Com-
mission to fill the unexpired term of office of Dag Seeley (to May 1980) .
The Vote: Unanimous Ayes
CONTRACT AMENDMENT - PACE Engineering Contract re Master Sewer Plan
Public Works Director Arness reviewed his memo to Council dated July 5, 1979
recommending an amendment to the City's contract with PACE Engineering, the
firm preparing the City's Master Sewer Plan. The amendment will increase
the maximum fee from $26,350 to $32,274 and will provide for sizing of sewer
trunk lines and improvements in lift stations for alternate and ultimate land
uses. It is the Department recommendation that PACE Engineering prepare
alternate Master Sewer Plans so that the City can evaluate each plan on the
basis of cost and its environmental impact on the area and that the Mayor be
authorized to sign the amendment.
MOTION: Made by Councilwoman Gard, seconded by Councilman Kirkpatrick approving
the amendment to the contract between the City of Redding and PACE Engineering
pertaining to the City's Master Sewer Plan and authorizing the Mayor to execute
same. The Vote: Unanimous Ayes
{ RESOLUTION - $5,000,000 City of Redding 1977 Electric System Improvement Bonds
City Attorney Murphy said that adoption of this resolution makes possible the
sale of the remaining $5 million dollars in bonds of the $9.8 million dollar
General Obligation bond issue passed in 1977. This money, along with additional
{ funds, will be utilized to purchase the electrical facilities from PG&E in the
Enterprise area. The bids will be opened at 10:00 a.m. , July 18th, in the
Bond Counsel's office in San Francisco and Mr. Courtney and Mr. Murphy will be
present. It is anticipated that the bids will be so complex and so close that
they will be studied by computer and it is not certain that the results will
be ready by 12:00 Noon. Mr. Murphy suggested that the Council meeting on July
16th be continued to Wednesday, the 18th, so that Council can take action on the
most favorable bid. The bonds will be delivered on August 1.
MOTION: Made by Councilman Kirkpatrick, seconded by Councilman Fulton that
Resolution No. 79-113 be adopted, a resolution of the City Council of the
City of Redding approving form of official statement relating to $5,000,000
principal amount of City of Redding 1977 Electric System Improvement Bonds,
Series B.
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Voting was as follows:
Ayes: Council Members - Fulton, Gard, Kirkpatrick, and Demsher
Noes: Council Members - None
Absent: Council Members - Pugh
Resolution No. 79-113 is on file in the office of the City Clerk.
ADJOURNMENT
There being no further business, at the hour of 12:50 p.m. , Mayor Demsher
declared the meeting adjourned.
APPROVED:
alk.
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ATTEST: Mayor
IA
ity Clerk ,
1