HomeMy WebLinkAboutMinutes - City Council - 1983-03-29 91
City Council , Adjourned Regular Meeting
Police Dept. & Council Chambers
Redding, California
March 2.9, 1983 12:00 Noon
The meeting was called to order by Mayor Gard with the following Council
Members present: Demsher, Kirkpatrick, Pugh, and Gard. Council Members
absent: Fulton
Also present were City Manager Courtney, City Attorney Hays , Electric
Director Lindley, Engineering Manager Ryan, Associate Electrical Engineer
Coleman, Finance Director Downing, City Clerk Nichols, and Minute Clerk
Rupp.
CONTRACT MODIFICATION NO. 2 - Whiskeytown Power Project
Electric Director Lindley reviewed his memorandum to Council dated March
24, 1983 , which is incorporated herein by reference. He advised that
subsequent to the award of Bid No. 1287, to the Brown-Boveri Corporation
for the Whiskeytown Power Project, two major occurrences have necessitated
changes in the contract relative to scope, taxes, and escalation. He noted
that this contract modification will cost an additional $227,111 , plus an
additional monthly escalation of approximately $3,142. Mr. Lindley said
that Brown-Boveri asked for a commitment from the City of Redding indicat-
ing it agrees to these modifications.
Mr. Lindley said he feels comfortable with the arrangements and added that
the charge for the use of the facilities which will be imposed by FERC,
will not be known until some future date. He hoped that staff would have
an answer on facility charges as early as June of this year.
Mr. Lindley also explained that the National Park Service protested FERC' s 6(4')
authority to grant a license on the project and said it is not known at
this time whether or not the Park Service will appeal this decision or
simply try to carry it through the legislative process. He assured Council
that staff is tracking this very closely and hopes to have it resolved
soon.
Mr. Lindley advised that the City Attorney has reviewed and approved the
contract modification and it is the recommendation of staff that Council
approve Contract Modification No. 2, and authorize the City Manager to sign
the documents.
In response to an inquiry from Mayor Gard, Mr. Lindley advised that no
estimates are available at this time concerning the facilities charge. He
added that staff has even been unable to get any information from the
Washington office. He also stated that if the City of Redding elects not
to proceed on or before November 31 , 1983 , the agreement with Brown-Boveri
will be automatically cancelled. He said the City could rebid the final
design of the project later if it is necessary and Brown-Boveri would have
the opportunity to rebid with other bidders at that time.
Mr. Lindley stated that WAPA has agreed they will provide the transmission
line, should the City desire to layoff power to them. The City could then
obtain use of the project during summer peaks to help offset supplemental
purchases. He explained that the only real problem with that arrangement
is the mills per kilowatt hour they are willing to pay to the City of
Redding.
MOTION: Made by Councilman Pugh , seconded by Councilman Demsher approv-
ing the recommendation of staff and authorizing the City Manager to sign
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Contract Modification No. 2 to Brown-Boveri Corporation for Whiskeytown
Power Project. The Vote: Unanimous Ayes
{ ADJOURNMENT
There being no further business, at the hour of 12:05 P.M. , Mayor Gard
declared the meeting adjourned.
APPROVED:
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I. Jam_ gI
ayor
ATTEST:
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City Clerk
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3/29/83