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HomeMy WebLinkAboutMinutes - City Council - 2013-06-20 258 City Council, Special Meeting Civic Center Council Chambers 777 Cypress Avenue Redding, California June 20, 2013 12:00 p.m. The meeting was called to order by Mayor Rick Bosetti with the following Council Members present: Gary Cadd, Patrick Jones, Missy McArthur, and Francie Sullivan. Also present were City Manager Kurt Starman,City Attorney Rick Duvernay,Assistant City Manager/Electric Utility Director Barry Tippin,Deputy City Manager Greg Clark,City Clerk Pamela Mize, and Executive Assistant Sharlene Tipton. 2. Proposal from The McConnell Foundation to acquire approximately 14.1 acres of City-owned property currently leased to the Turtle Bay Exploration Park(a portion of Assessor's Parcel No. 102-040-005) [C-070-200] City Manager Starman provided background information and highlighted the proposal received from The McConnell Foundation (staff report), dated June 14, 2013, incorporated herein by reference, and recommended that the City Council ,consider The McConnell Foundation's revised proposal to acquire approximately 14.1 acres of City-owned property (a portion of Assessor's Parcel No. 102-040-005) currently leased to the Turtle Bay Exploration Park(Turtle Bay) in exchange for up to 80 acres on the Gore Ranch, receive public input, and, if necessary,provide additional direction to the City's negotiators. The following spoke in support of The McConnell Foundation's proposal: Archer Pugh, Ryan Denham, Dr. Ron Reece, Steven Anderson, Betty Wright Abernathy, Dr. Randall Smith, Janice Cunningham, Amber Davis, Bill Leiber, Dennis Cowan, Barbara Harrison, Paul Barth, Charles Menoher, Sheri Silk. The following spoke in opposition to The McConnell Foundation's proposal: Katherine McDonald, Bob Vanderpol, Dave Kirk, Tom Curato, John Wilson, Dolores Lucero, Jan Lopez, Dick Fyten, Linda G. Johnson, Bob Reitenbach, Rob McDonald, Linda White, Paul Poling, Jerry Peters, Marjy Cantrell, Charles W. Alexander. On behalf of the Redding Rodeo Association,Bruce Alexander stated that it supports Turtle Bay,and noted that although they did meet with Mayor Bosetti relative to the Rodeo Association's potential interest in the 80 acres on Gore Ranch,they have no plans to move from their current location at this time. Rick Fauss, Superintendent of the Redding School, Shasta Union, and Igo-Platina School Districts, spoke on behalf of the other 25 School District Superintendents in Shasta County in support of whatever measures can be taken to help sustain Turtle Bay. On behalf of the Greater Redding Chamber of Commerce, President Frank Strazzarino supported Turtle Bay and the need for a hotel that will help facilitate economic growth. On behalf of the International Brotherhood of Electrical Workers (IBEW) Local Union 340,Vice President Andrew Meredith stated that although they are supportive of Turtle Bay and the proposed hotel,they are not in support of the continued battle against paying prevailing wages to the workers in order to accomplish the proposed project. In response to Council Member Sullivan's request to expand on how prevailing wage rates are calculated,Mr.Meredith explained that the rates are calculated on a county by county basis. He noted that it is IBEW's opinion that the additional price tag of $3.2 million for prevailing wages is not accurate.He opined that an accurate cost can not be calculated without re-bidding the project to include prevailing wages. 06/20/2013 259 In response to Council Member Cadd, Mr. Meredith confirmed both that any employee can bring forward a prevailing wage dispute,and if the proposed 80-acres on Gore Ranch is bought by the City,prevailing wages would be necessary for any future projects on that land. Brent Day, President of Gifford Construction, stated that Gifford Construction has been the General Contractor working on the Turtle Bay Hotel project for approximately three years. He noted that the Turtle Bay Hotel project was initially bid utilizing non-prevailing wage rates,however,within two weeks of the initial bid opening, approximately 45 subcontractors were requested to re-adjust and submit their total costs to include prevailing wage rates. He noted that at that time, the additional costs were$3.2 million plus and stated that the amount is accurate. In response to Council Member Sullivan, Mr. Day confirmed that Gifford Construction has completed many projects that have and have not included prevailing wages,and stated that he has not seen any evidence of the quality of work being any less with or without prevailing wage rates paid.. On behalf of The McConnell Foundation,Attorney Mike Ashby emphasized that the proposed project simply is not possible if subject to the requirement of paying prevailing wage rates. He stated that the City is not bailing out Turtle Bay, and further stated that The McConnell Foundation and Turtle Bay are not waging a war on prevailing wages,its intent is to structure the funding to make the project feasible. He also noted that The McConnell Foundation is willing to either pay cash for all 14.1 acres, exchange land, or take other steps deemed necessary to move the proposed hotel project forward. In response to Council Member Sullivan,Mr.Ashby recalled that a few of the unions raised the issue of prevailing wages and filed a grievance with the Department of Labor, and at that time, approximately two years ago, the initial determination was in favor of Turtle Bay indicating prevailing wages were not required. He explained that recently the Department of Labor reversed its initial determination after an appeal by the unions and has now taken the stance that prevailing wage laws do apply to the proposed project. He further explained that the ultimate decision will be decided by the courts as litigation is still pending. City Attorney Duvernay stated that from the beginning,the City's position has been that this project should not be subject to prevailing wages since the City has not contributed any public subsidies to the proposed project. He noted that the City is a named party to the Writ of Mandate filed with the courts by the unions,however,it is still the City's intent to work toward reversing the decision to impose prevailing wage requirements. Mr. Duvernay also noted that the long-term lease to Turtle Bay pre-dated the 2002 prevailing wage law changes,therefore,should not be considered a public subsidy. Council Member Cadd's expressed his concern that the City would need to get fair market value for the 14.1 acres without consideration for the lease in order to avoid prevailing wage issues. Mr.Duvernay explained that there are several arguments that can be made relative to Mr.Cadd's concern,however,he noted that ultimately it will be up to the courts to determine the prevailing wage outcome. A discussion amongst the Council ensued. Council Member McArthur read a statement by Dr. Lang Dayton, who could not attend the Council meeting and relayed Dr. Dayton's support of a successful agreement between the City and The McConnell Foundation because Turtle Bay is an asset for the community. A MOTION WAS MADE by Council Member McArthur, seconded by Council Member Sullivan,to authorize the Mayor and staff to continue negotiations,whether for a property exchange or cash, and return to the Council at a later date for consideration. 06/20/2013 260 AN AMENDED MOTION WAS MADE by Council Member Cadd, seconded by Council Member Jones, to authorize the Mayor and staff to continue negotiations with The McConnell Foundation, excluding the proposed exchange for 80 acres on Gore Ranch, and return to the Council at a later date for consideration. The Vote: AYES: Council Members Cadd and Jones NOES: Council Members- McArthur, Sullivan, and Bosetti ABSTAIN: Council Members-None ABSENT: Council Members -None Motion failed. Following the failure of the Motion to Amend,the Mayor called for the vote on the original motion to authorize the Mayor and staff to continue negotiations, whether for a property exchange or cash, and return to the Council at a later date for consideration. The Vote: AYES: Council Members - McArthur, Sullivan, and Bosetti NOES: Council Members - Cadd and Jones ABSTAIN: Council Members-None ABSENT: Council Members -None ADJOURNMENT There being no further business, Mayor Bosetti declared the meeting adjourned at the hour of 3:05 p.m. APPROVED: Rick Bosetti, Mayor ATTEST: frij Pamela Mize, City Clerk 06/20/2013