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HomeMy WebLinkAboutMinutes - City Council - 1978-07-17206 City Council, Regular Meeting Police Dept. & Council Chambers Bldg. Redding, California July 17, 1978 7:00 P.M. The Pledge of Allegiance to the Flag was led by Personnel and Labor Relations Director Reynolds. The invocation was offered by the Reverend Robert DeWolf, Pastor of the United Methodist Church. The meeting was called to order at 7:00 P.M. by Mayor Demsher with the following Council Members present: Fulton, Gard, Kirkpatrick, Pugh, and Demsher. Also present were City Attorney Murphy, Planning and Community Development Director Harris, Police Chief Whitmer, Electric Director Simpson, Personnel and Labor Relations Director Reynolds, Public Works Superintendent Galusha, Housing and Redevelopment Administrator Henson, Associate Civil Engineer Hastings, Traffic Engineer Hamilton, Assistant Finance Director Tenneson, Airports Manager McCall, City Clerk Brayton, and Deputy City Clerk Richter, APPROVAL OF MINUTES MOTION: Made by Councilman Pugh, seconded by Councilwoman Gard approving the minutes of the adjourned regular meeting of July 10, 1978, as mailed to each Council Member, with the clerical correction noted. The Vote: Unanimous Ayes WRITTEN COMMUNICATIONS Teen World U.S.A. - Request for Change in Ordinance Governing Dances City Clerk Brayton reviewed the memo to Council from David L. McGeorge, Operator of Teen World U.S.A., dated July 11, 1978, requesting modi- fication of Section No. 6.24.020 of the Redding City Code pertaining to a charge for readmission of minors into a public dance. Mrs. Brayton read Section 6.24.020 of the City Code for the benefit of those present. Police Chief Whitmer reviewed his memo to Council dated July 17, 1978, �1� 1 stating that Teen World U.S.A. opened business under a membership program which made Section 6.24.020 inapplicable. Mr. Whitmer pointed out that at present, Teen World U.S.A. is operating a public dance. He explained that this Code was enacted March 18, 1963, for control and supervision of patrons under twenty-one years of age. The ordinance is helpful in reducing alcohol and attendant problems of vandalism, littering, congre- gating in parking lots and disturbances. It is the staff consensus that the ordinance be retained. Councilman Pugh said that as a member of the Lions Club, he was partly responsible for the original ordinance, referring to the Teen center where there were problems in the parking lot. He noted that Teen World U.S.A. is a commercial -type venture and questioned whether said ordi- nance should be modified to give consideration to the local operation of Teen World. Chief Whitmer said that perhaps the ordinance could be modified to take the local operation into consideration; however, his concern is that many out-of-town entrepreneurs come to Redding for one-night stands and said regulations should be applicable in these cases. 1 1 Mayor Demsher concurred that there are many potential problems to consider, and referred the item to staff for review with Mr. McGeorge and for a report back to Council at a later date. Mayor Demsher questioned whether the existing ordinance regulating closure of parking lots at 10:00 P.M. is applicable to the area at the south end of the Downtown Mall. He noted that he had observed persons congregating in this area possibly due to the later business hours initiated by the Post Office, a restaurant and bar in the Mall. City Attorney Murphy and Police Chief Whitmer replied affirmatively that subject ordinance is applicable. Mayor Demsher requested that this area be regulated. SKYLINE-SONOMA ALLEY - Request for Preventative Flooding Measure Council members reviewed a communication from Lena Randolph, 2056 Skyline Drive, requesting a small ridge of asphalt be placed along the front of her driveway to prevent flooding. Reference was made to a letter to the City dated September 10, 1973, in which concern was expressed about possible flooding. Mayor Demsher referred this matter to the Public Works Department for review and recommendation. 207 Sly MEMORIAL HOSPITAL - Request for additional Ambulance (Life Support Unit) In a letter to Council dated July 12, 1978, W. H. Schneider, Adminis- trator of Memorial Hospital of Redding, requested a license for a second ambulance with substantiation for said request. This proposal has the endorsement of the Ambulance Society. Councilwoman Gard said the joint City -County Ambulance Committee C' concurs with the request and said that Memorial Hospital has desired a backup unit for some time. Bob Blehm, P.O. Box 98, Igo, Director of the Memorial Life Support Unit, said it is difficult to run one unit 24 hours a day for 365 days out of the year without a backup unit to run during time of repair and maintenance. He said that over a 15 -month period, the unit has covered 43,000 miles which does point out the need for maintenance. He said the request is not for two units to run simultaneously with two crews, but to rotate with dispatch when one of the units is out of service for repairs. In making his presentation, Mr. Blehm made similar substantiations as covered in Mr. Schneider's letter, which are as follows: 1. To provide backup for our primary unit when it is out of service during break -down and periods of normal maintenance. Currently, when our unit is out of service, there is only one life support unit (Mercy's) available to cover the City and County. 2. To help cover the City of Redding when one or more life support units are tied up on out-of-town calls. Round trip to Sacramento requires 6.5 hours; San Francisco, 9 hours. 3. During a disaster such as a train, plane, or bus accident, etc. 4. As the need for additional resources increases with the growth of the City and County. 5. Memorial Hospital is vitally concerned with continuing to provide the highest quality of mobil intensive care service to the City and County. City Attorney Murphy advised Council that it must make findings that the public convenience and necessity require the proposed addition of one life-support unit. MOTION: Made by Councilman Kirkpatrick, seconded by Councilwoman Gard finding that the public convenience and necessity do require the addition of one backup life-support unit for Memorial Hospital and approve the request for a license to operate said unit. The Vote: Unanimous Ayes with Councilman Pugh abstaining DOWNTOWN MALL ASSOCIATION and MUSCULAR DYSTROPHY ASSOCIATION - Request for "Bed Race" In a communication to Council, dated July 12, 1978, the Downtown Mall Association and the Muscular Dystrophy Association requested approval for use of 4 -lanes of Market Street from Placer Street to Gold Street on Saturday, August 26, 1978, from 10:00 a.m. to 2:00 p.m. to stage a "Bed Race" benefit for victims of Muscular Dystrophy. Participation will be limited to 32 entries to race in eight qualifying heats with four beds to a heat and an entry fee of $175.00 will be charged for each bed as a contribution to be donated to the Muscular Dystrophy Association. In a communication to Council, dated July 17, 1978, Police Chief Whitmer said the only requirement of the Police Department would be routine beat patrol. He noted that Placer Street will not be closed and the Downtown Mall Association has agreed to have the staging area immediately south of Placer Street instead of on Placer Street between Pine Street and Market Street, as originally requested. Mr. Whitmer recommends favorable consideration of this matter. MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick approving the aforestated request for a "Bed Race". The Vote: Unani- mous Ayes CLAIMS FOR DAMAGE - 1st hearing Cindy Curl - Claim filed 7/6/78 MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that the Claim for Damage filed by Cindy Curl on July 6, 1978, be 1� approved in the amount of $100.00, based on the recommendation of the City Insurance Committee. The Vote: Unanimous Ayes CLAIMS FOR DAMAGE AND PERSONAL INJURY - 2nd hearing Glenn L. Cameron - Claim filed 5/17/78 MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that the Claim for Damage filed by Glenn L. Cameron on May 17, 1978 1 be denied, and that the claimant be so advised. The Vote: Unanimous Ayes Albertina Bremer - Claim filed 6/1/78 MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that the Claim for Personal Injury filed by Albertina Bremer on �- June 1, 1978, be denied, and that the claimant be so advised. The 1 Vote: Unanimous Ayes Richard Maxwell - Claim filed 3/8/78 MOTION: Made by Councilman Pugh, seconded by Councilman Fulton that 3 the Claim for Damage filed by Richard Maxwell on March 8, 1978 1' be denied, and that the claimant be so advised. The Vote: Unanimous Ayes 1 1 1 1 209 Teresa Bell Sharp - Claim filed 5/10/78 MOTION: Made by Councilman Pugh, seconded by Councilman Fulton that the Claim for Damage filed by Teresa Bell Sharp on May 10, 1978 be denied, and that the claimant be so advised. The Vote: Unanimous Ayes Richard G. Urban - Claim filed 6/7/78 MOTION: Made by Councilman Kirkpatrick, seconded by Councilman Fulton that the Claim for Damage filed by Richard G. Urban on I June 7, 1978 be denied, based on the recommendation of the City Insurance Committee, and that the claimant be so advised. The Vote: Unanimous Ayes with Councilman Pugh abstaining Lyle and Margaret Faudree — Claim filed 6/14/78 MOTION: Made by Councilman Fulton, seconded by Councilwoman Gard I that the Claim for Damage filed by Lyle and Margaret Faudree on June 14, 1978 be denied, and that the claimant be so advised. The Vote: Unanimous Ayes Charles.R. Lynch - Claim filed 6/14/78 MOTION: Made by Councilman Pugh, seconded by Councilman Fulton that the Claim for Damage filed by Charles R. Lynch on June 14, 1978 be denied, and that the claimant be so advised. The Vote: Unanimous Ayes Agnes Herberger - Claim filed 6/15/78 MOTION: Made by Councilman Pugh, seconded by Councilman Fulton that the Claim for Damage filed by Agnes Herberger on June 15, 1978 be denied, and that the claimant be so advised. The Vote: Unanimous Ayes SETTLEMENT OF CLAIMS City Attorney Murphy the following persons the amounts listed: - Nancy Pearson and Ella Dunbar advised Council that the Claims for Damage filed by have been settled by the City Insurance Carrier in Nancy Pearson - Claim filed 6/7/78 - $ 62.85 Ella Dunbar - Claim filed 6/1/78 - 700.00 ORDINANCE - Amended Conflict of Interest Code for Council Members MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that full reading of Ordinance No. 1396 be waived, and that the City Attorney be instructed to scan same. The Vote: Unanimous Ayes 1-.1-3 'a3 3 MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that Ordinance No. 1396 be adopted, an ordinance of the City Council of the City of Redding amending Title 2 of the Redding Municipal Code by repealing Chapter 2.89 and substituting therefor a new Chapter 2.89, an amended Conflict of Interest Code for Members of the City Council. Voting was as follows: Ayes: Councilmen - Fulton, Gard, Kirkpatrick, Pugh, and Demsher Noes: Councilmen - None Absent: Councilmen - None Ordinance No. 1396 is on file in the office of the City Clerk. ORDINANCE - Amended Conflict of Interest Code for Officers, Employees and Planning Commissioners MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that _ full reading of Ordinance No. 1397 be waived, and that the City Attorney be instructed to scan same. The Vote: Unanimous Ayes 210 MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that Ordinance No. 1397 be adopted, an ordinance of the City Council of the City of Redding amending Title 2 of the Redding Municipal Code by repealing Chapter 2.90 and substituting therefor a new Chapter 2.90, an amended Conflict of Interest Code for designated officers, employees and Planning Commissioners of the City. Voting was as follows: Ayes: Councilmen - Fulton, Gard, Kirkpatrick, Pugh, and Demsher Noes: Councilmen - None Absent: Councilmen - None Ordinance No. 1397 is on file in the office of the City Clerk. ORDINANCE - Amended Conflict of Interest Code for the City Manager MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that full reading of Ordinance No. 1398 be waived, and that the City Attorney be instructed to scan same. The Vote: Unanimous Ayes MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that Ordinance No. 1398 be adopted, an ordinance of the City Council of the City of Redding amending Title 2 of the Redding Municipal Code by adding thereto Chapter 2.91, a Conflict of Interest Code for the City Manager. Voting was as follows: Ayes: Councilmen - Fulton, Gard, Kirkpatrick, Pugh, and Demsher Noes: Councilmen - None Absent: Councilmen - None Ordinance No. 1398 is on file in the office of the City Clerk. RESOLUTION - Designating Handicapped Parking Spaces in Parking Lots 8 and 11 MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that Resolution No. 78-118 be adopted, a resolution of the City Council of the City of Redding reserving one parking space in Parking Lot No. 8 adjacent �3 to the Payless entrance on the west side of the Mall, and one parking space in Parking Lot No. 11 south of the Far East Cafe on the east side of the Mall, for use by disabled persons. Voting was as follows: Ayes: Councilmen - Fulton, Gard, Kirkpatrick, Pugh, and Demsher Noes: Councilmen - None Absent: Councilmen - None Resolution No. 78-118 is on file in the office of the City Clerk. 1 1 PARKING PROHIBITION - West side of East Street, South of Lincoln Street Traffic Engineer Hamilton reported that at its regular session on July 10, 1978, the Traffic and Parking Commission voted unanimously to recommend �� to Council that parking be prohibited on the west side of East Street for PRELIMINARY 1978-79 BUDGET SESSIONS / S MOTION: Made by Councilman Fulton, seconded by Councilman Pugh setting 1 the preliminary budget sessions for 3:30 P.M. August 9 and 14, 1978, in the City Hall Conference Room. The Vote: Unanimous Ayes LIMITED PARKING - 1241 East Street Traffic Engineer Hamilton reported that at its regular session on July 10, 1978, the Traffic and Parking Commission voted unanimously to recommend to Council the installation of a 15 -minute limited parking zone in front of Mary B's School of Cakes at 1241 East Street to facilitate drop-in customer �\ C' 1 parking. MOTION: Made by Councilman Pugh, seconded by Councilwoman Gard approving the recommendation and instructing the City Attorney to prepare the necessary resolution. The Vote: Unanimous Ayes PARKING PROHIBITION - West side of East Street, South of Lincoln Street Traffic Engineer Hamilton reported that at its regular session on July 10, 1978, the Traffic and Parking Commission voted unanimously to recommend �� to Council that parking be prohibited on the west side of East Street for 211 150 feet south of the extension of the south curb line of Lincoln Street, in the area where the four -lane street reduces to two lanes. Mr. Hamilton stated that if there is a truck parked there, the roadway is quite narrow. Councilman Fulton asked if the affected property owner of the vacant parcel opposite Lincoln Street had been notified. Traffic Engineer Hamilton replied in the negative. He stated he would notify the property owner. MOTION: Made by Councilman Kirkpatrick, seconded by Councilman Pugh approving the recommendation of the Traffic and Parking Commission and instructing the City Attorney to prepare the necessary resolution. The Vote: Unanimous Ayes STOP SIGN - On Huntington Drive at Churn Creek Road Traffic Engineer Hamilton reported that at its regular session on July 10, 1978, the Traffic and Parking Commission voted to recommend to Council the installation of a stop sign to stop southbound Huntington Drive traffic at Churn Creek Road. Mr. Hamilton said the need for this stop sign was brought to the attention of the City by the California Highway Patrol which is the enforcing agency for this portion of Churn Creek Road, which is located in the County. It was pointed out that several accidents on that corner have 3 ((} been attributed to the lack of a stop sign to southbound traffic. d� Councilman Pugh asked if the property owners were notified of the proposed stop sign. Traffic Engineer Hamilton replied in the negative. Councilman Pugh emphasized the need for notifying pro',perty owners when Traffic and Parking Commission proposals will affect rthem. Mayor Demsher pointed out that in addition to being a courtesy matter, quite possibly property owners will have input Council wouldn't otherwise receive. CouncilwomanlGard said that because the California Highway Patrol had pointed out Ithe necessity for installation of this stop sign to alleviate accidents, she concurred in the recommendation. Mayor Demsher instructed the Traffic Engineer to notify the affected property owners and bring the item back for consideration at a, later meeting. SHASTA KART KLUB - Request for Renewal of Lease Airports Manager McCall reviewed his memo to Council dated July 11, 1978, stating that at the present time, the Shasta Kart Kl b uses a portion of the drag strip area at the south end of the Redding Municipal Airport for kart racing. It is the recommendation of the Airports Commission and the Air- i) ports Manager that this permit be extended for one year. MOTION: Made by Councilman Pugh, seconded by Councilwoman Gard approving the aforestated recommendation and authorizing the Mayor to sign said agree- ment on behalf of the City. The Vote: Unanimous Aye PUBLIC HEARING - Rezoning Application RZ-2-78, RichaId Dixon The hour of 7:30 P.M. having arrived, Mayor Demsher opened the Public Hearing on Rezoning Application RZ-2-78 by Richard Dixon. The following documents are on file in the office of the City Clerk: Affidavit of Publication - Notice of Publi Hearing Affidavit of Mailing - Notice of Public He Planning Department Recommendation dated 7)12/78 212 The City Clerk advised Council that five written protests had been received from the persons listed below. Protests were in opposition to zoning that would allow a mobilehome park and were not pertinent to the issue being heard this evening. Lillian H. Nelson, 1325 Walnut Avenue Lillian Gail and Lionel R. Leonard, Jr., 151 Davis Ridge Road Jon Agostini, 1010 Hartnell Avenue George Mainas, P.O. Box 3585, Redding Guy Cooper, 4832 Alta Rico Drive Planning and Community Development Director Harris reviewed his memo to Council dated July 12, 1978, which is made a part of these minutes by reference. Mr. Harris said that at its regular meeting of June 13, 1978, the Redding Planning Commission unanimously recommended denial of the request to rezone property located south of Highway 299 and east of Interstate 5 from "PD" Planned Development District to the "R3 -40 -RT" Multiple Family Residential District permitting a mobile - home park and to "U -F" Unclassified District. The area was depicted on the Vu Graph. Mr. Harris said it is the recommendation of the Planning Commission that the property be rezoned to a "U" Unclassified District. If Council concurs, the City Attorney has prepared an ordi- nance for Council consideration after close of the hearing. City Attorney Murphy advised members of the Council and audience that the adoption of a "U" Unclassified District would not commit the use of the land to a mobilehome park. It merely places the property in a holding zone and any proposed development would have to be approved by the Planning Commission by use permit. Councilman Fulton asked what happened to the property when the "PD" zoning expired in 1975. Mr. Harris replied that since the property owner did not construct the proposed development within the allowable time frame and since the "PD" zoning expired in January, 1975, the owners must either reapply for a "PD" District or some other zoning district in order to develop the property. Councilman Fulton asked why the property owner changed his request from a "PD" District to "R3 -40 -RT?" Mr. Harris replied that the applicant presently has no tools to work with at all. He needs some form of zoning to allow him to commence any type of development. Mr. Harris said that in 1972, the General Plan allowed the requested density of 260 units for a "PD" District. Due to subsequent amendments to the General Plan in 1977, reducing the number of allowable units, the original request for 260 units under the "PD" District is no longer allowable, and the applicant had requested rezoning to a "R3 -40 -RT" District permitting a mobilehome park. The applicant intended to apply for a use permit to develop a 171 -unit mobilehome park on the entire property, consistent with the number of units permitted by the General Plan. The Planning Commission denied the request and has recommended to Council that it be rezoned to a "U" Unclassified District. Councilman Fulton said that the "U" District does not assure the applicant of any proposed use and any development plans will be subject to the "whims" of the Planning Commission. Mr. Harris said the.Planning Commission does not have a request before it presently for a "PD" District; it would have to be initiated by the applicant. 213 Leonard Nelson, 1325 Walnut, owner of property on Canby Road, stated that the adjacent property owners would like to have Mr. Dixon's property rezoned to a classification that would prohibit a mobilehome park. Mr. Nelson said the subject property changed hands recently and the new owner is coming into the area to develop the property, and do something that the neighborhood does not want. He stated that the opponents want this area protected for residential development which will be a credit to the community. They would like Council to consider the property owners that have been here a long time above someone coming in and wanting to do something for profit in a hurry. Lee Leonard, 151 Davis Ridge Road, said his home is the only R-1 development in the area. He noted that when they acquired the property, they understood it was zoned R-1 and would remain so. Mr. Leonard felt that if a mobilehome park were developed, the density would be too great for the road system and would create a bottleneck and more traffic into the area. Lillian Nelson, 1325 Walnut, said her family owns 90 acres on Canby Road and that the Tanglewood property had been in her family's owner- ship. She referred to the proposed Tanglewood Condominium development as an example of what can be developed and is desirable. She stated that a couple of years ago, the County and City Planning Departments held meetings and worked diligently considering the General Plan for this area. She said she had attended all of those meetings and there was never any reference made to a proposed mobilehome park. William Knuth, P. 0. Box 4782, Carmel, speaking on behalf of the applicant, said they will accept the "U" Unclassified zoning in order to get the issue settled. MOTION: Made by Councilman Kirkpatrick, seconded by Councilwoman Gard that the Public Hearing be closed. The Vote: Unanimous Ayes MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick approving the recommendation of the Planning Commission that the property be zoned to a "U" Unclassified District. The Vote: Unanimous Ayes Councilman Pugh offered Ordinance No. 1399 for first reading, an ordi- nance 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-2-78) Councilwoman Gard said she wanted to be sure that the audience under- stands the procedures involved. Mayor Demsher said that Council has not approved a mobilehome park. When and if there is a plan for this property, the Planning Commission and City Council will consider it within the framework of the existing General Plan. APPROVAL OF PAYROLL AND ACCOUNTS PAYABLE REGISTER MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that Accounts Payable Register No. 2, check nos. 58313 to 58586, inclusive, in the amount of $1,443,675.04 for the period ending July 14, 1978, be approved and paid, that Payroll Register No. 1, check nos. 102482 to 103028, inclusive, salaries in the amount of $263,850.47 for the period June 25, 1978, through July 8, 1978, be approved and paid. Total $1,707,525.51 O Voting was as follows: Ayes: Councilmen - Fulton, Gard, Kirkpatrick, Pugh, and Demsher Noes: Councilmen - None Absent: Councilmen - None 214 NOTICE OF COMPLETION - East Palisades and View Avenue Sanitary Sewer Assessment District MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick accepting 3 j 1 the East Palisades and View Avenue Sanitary Sewer Assessment District, Bid Schedule No. 1010, as being completed satisfactorily, and instructing the City Clerk to file a Notice of Completion. The Vote: Unanimous Ayes RESOLUTION - Abatement of Property at 4551 Bonnyview Road MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that Resolution No. 78-119 be adopted, a resolution of the City Council of the City of Redding approving the report and findings of the Board of Appeals �.� and ordering the abatement of the unsafe and unsightly building and debris on property at 4551 East Bonnyview Road. (Kelton/Morgan) Voting was as follows: Ayes: Councilmen - Fulton, Gard, Kirkpatrick, Pugh, and Demsher Noes: Councilmen - None Absent: Councilmen - None Resolution No. 78-119 is on file in the office of the City Clerk. AGREEMENT - City and Frank M. Booth, Inc. - Auditorium Air Conditioning Maintenance Councilman Pugh abstained from discussion and voting on this item. L1 MOTION: Made by Councilman Fulton, seconded by Councilwoman Gard approving the annual agreement between the City of Redding and Frank M. Booth, Inc. pertaining to maintenance of air conditioning, heating, and ventilating equipment at the Civic Auditorium. The Vote: Unanimous Ayes with Council- man Pugh abstaining. RESOLUTION - Approving Electric Rates City Attorney Murphy said that on June 19, 1978, Council adopted Resolution No. 78-55 increasing electric rates for the City of Redding. Because it is believed that the City of Redding did not comply with the guidelines of CEQA in adoption of Resolution No. 78-55, the City has been sued. On July 5, 1978, the State Legislature passed SB 1733 which makes it possible for cities to establish, modify, structure, restructure, or approve rates, tolls, fares, or other charges needed, and not comply with the provisions of the California Environmental Quality Act, if such rates, tolls, or other charges are (1) to meet operating expenses, (2) to purchase or lease supplies and materials, (3) to meet financial reserve needs and requirements, (4) to obtain funds for capital projects necessary to maintain service within existing service areas, or (5) to obtain funds necessary to maintain such intra -city transfers as are authorized by city charter. Mr. Murphy said that the resolution before the Council this evening has been structured in the manner prescribed by the new statute and is, therefore, exempt from CEQA requirements. Mr. Murphy said that Resolution No. 78-120 reenacts the electrical utility rates for power furnished to the customers of the City effective July 18, 1978, for which meter readings will be read on or after August 18, 1978. The purpose of the new resolution is to limit the scope of the existing lawsuit by superseding the former resolution from and after July 18, 1978, unless the plaintiff takes further action. Mr. Murphy said that it is his opinion, along with a concurring recommendation of Mr. Wingate, the City's special counsel, that it is in the beat interests of the City to proceed in this manner. Marshall Mayer, Attorney, stated that in reading the resolution, it appears the need for the increase is predicated on the fact that the Bureau has raised its rates to the City. He questioned whether Council is aware of the fact that Bonneville power is available at a substantially lower rate. Mr. Mayer made reference to the electric rates being used for intra -city transfers such as the gas tax street improvement fund, local transportation 11 1 1 215 fund, anti -recession assistance fund, special street construction fund, employee retirement fund, and equipment maintenance and replacement fund. (City Clerk's Note: The above funds are transferred to the General Fund, but are not taken from the electrical utility fund. Reference Summary of Fund Transfers, 1977-78 Annual City of Redding Budget.) Mr. Mayer alleged that City Department heads, namely the City Manager, the City Attorney, and the City Treasurer, receive subsidies from the Electric Utility Fund. He said the uses he has outlined suggest that the City has a nice slush fund to dip into. He asserted the City has been overcharging the customers since 1960, and the public has been paying excessive electric rates. Councilman Pugh challenged Mr. Mayer's statement that the City has been overcharging electric customers. He referred to Mr. Mayer's half -page ad in the Record Searchlight on June 26, 1978, which contained a statement that, "Jim Simpson, City Electric Director, admits that the City overcharges electric customers by $330,000 annually." Councilman Pugh said that Mr. Mayer is the only one that has said the City is overcharging its customers. Neither Jim Simpson, nor any Council Member made this statement and Mr. Pugh wanted it clarified that the ad was in error in attributing the statement to Mr. Simpson when, in fact, it was only the assertion of Mr. Mayer. R.B. Donaldson, 1045 Redbud Drive, asked if the City of Redding does have 3.1 million dollars in surplus money. City.Attorney Murphy replied that the City surplus is in that neighborhood. Mr. Donaldson asked why there isn't a reduction of taxes when it appears that the City doesn't need such a vast surplus. Mr. Murphy replied that it is very necessary for any city to have a working surplus. This City has enjoyed (or suffered, depending on how you look at it), a tremendous growth, almost doubling in size overnight due to the annexation of Enterprise and Cascade. He stated that in dealing with the many problems of annexation, the City's expenses have gone up hundreds of thousands of dollars noting that the City must purchase utility facilities in order to provide services to newly annexed areas and these purchases are very expensive. The electric utility facilities have not yet been purchased for the Enterprise area. Mr. Murphy said that as a result of having a surplus, the City has been able to purchase the Cascade distribution facili- ties for $1,450,000 without having to pay for bond money for which service costs can nearly double the cost. Mr. Murphy said it is a very complex issue and time doesn't allow going into all of the details. He added that the City of Redding enjoys the lowest electric rates in the State, averaging 500 lower than P. G. & E. rates charged property owners in the County adjacent to the City limits. Councilwoman Gard said she felt that any city has to have a good cash flow in order to meet unexpected expenditures without having to borrow money on short-term loans. She said many cities run on such low budgets that they are forced to borrow money to meet their payroll. Mr. Donaldson acknowledged that the City should have a prudent amount of money in surplus. City Attorney Murphy said that the City's budget was about 22 million dollars last year and the surplus is usually about 150 of the budget. Councilman Pugh said he appreciates Mr. Donaldson's comments. He said that making the public aware of the total impact of expenses in operating the City is a very difficult educational process. 216 Mayor Demsher added that the City's reserves per capita are diminishing each year. He added that with needed capital improvements caused by annexations, that trend will probably continue. Councilman Pugh said that the City has rebuilt two substations at consider- able outlays of money which were funded with electric utility revenue thus eliminating the need to purchase bonds. He said that the service charge for purchase of bonds has steadily gone up and that expenditure of funds can easily double if the bond route is the only available route to go. Mr. Pugh added, in response to Mr. Mayer';s comment about utilization of Bonneville power, that the lack of transmission lines prevents our use of this source. MOTION: Made by Councilman Pugh, seconded by Councilman Kirkpatrick that Resolution No. 78-120 be adopted, a resolution of the City Council of the City of Redding establishing electrical utility rates for service to customers within the corporate limits of the City of Redding. Voting was as follows: Ayes: Councilmen - Fulton, Gard, Kirkpatrick, Pugh, and Demsher Noes: Councilmen - None Absent: Councilmen - None Resolution No. 78-120 is on file in the office of the City Clerk. \� AGREEMENT - City of Redding and Patterson, Stewart & Associates MOTION: Made by Councilwoman Gard, seconded by Councilman Kirkpatrick approving the agreement between the City of Redding and Patterson, Stewart and Associates pertaining to Architectural and Engineering Services, Phase III, Redding Mall, and authorizing the Mayor to sign said contract on behalf of the City of Redding. The Vote: Unanimous Ayes AGREEMENT - City of Redding and W. A. Gelonek & Associates Councilman Pugh abstained from discussion and voting on this item. a k 3 MOTION: Made by Councilman Kirkpatrick, seconded by Councilwoman Gard approving the agreement between the City of Redding and W. A. Gelonek & Associates re Construction Supervision Services, Phase III, Redding Mall, and authorizing the Mayor to sign said contract on behalf of the City of Redding. The Vote: Unanimous Ayes RESOLUTION - Special Revenue Bond Election MOTION: Made by Councilman Kirkpatrick, seconded by Councilman Pugh that Resolution No. 78-121 be adopted, a resolution of the City Council of the City of Redding requesting the Board of Supervisors of Shasta County to provide for the consolidation of a special revenue bond election with the 3 3G` State of California General Election to be held on November 7, 1978. Voting was as follows: Ayes: Councilmen - Fulton, Gard, Kirkpatrick, Pugh, and Demsher Noes: Councilmen - None Absent: Councilmen - None Resolution No. 78-121 is on file in the office of the City Clerk. RESOLUTION - Establishing Amended Rate Schedule for Ambulance Operators City Attorney Murphy recommended that Council adopt, as an urgency measure, the resolution establishing an amended uniform maximum rate schedule for the operation of ambulances in the City. Mr. Murphy said that Resolution No. 78-.122 will be drafted to include the new ambulance rates as approved by Council at its. meeting on July 10, 1978. Mayor Demsher declared this an urgency -measure. L i Councilman Pugh noted that he has a conflict of interest in that he is the Attorney for Mercy Hospital; however, inasmuch as his vote is needed to pass this resolution by a 4/5 vote, he would cast a vote. MOTION: Made by Councilwoman Gard, declaring Resolution No. 78-122 an adoption. Resolution No. 78-122 i the City of Redding establishing a for the operation of ambulances in Voting was as follows: seconded by Councilman Kirkpatrick urgency resolution and approving its a resolution of the City Council of amended uniform maximum rate schedule the City of Redding. Ayes: Councilmen - Gard, Kirkpatrick, Pugh, and Demsher Noes: Councilmen - None Absent: Councilmen - None Abstain: Councilmen - Fulton Resolution No. 78-122 is on file in the office of the City Clerk. UNFINISHED BUSINESS AND NEW BUSINESS Mayor Demsher commented that a request from California Kamloops, Inc. for special funding will be considered by Council at the upcoming budget session. ROUTINE COMMUNICATION Application for Alcoholic Beverage License Tortilla Flats, 1135 Pine Street, #A ADJOURNMENT There being no further business, at the hour of 8:35 P.M., Mayor Demsher declared the meeting adjourned to 12:00 Noon, Monday, July 31, 1978. APPROVED: ATTEST: ayor City Clerk 217