HomeMy WebLinkAboutMinutes - City Council - 1981-09-28 375
City Council Special Meeting
Police Dept. & Council Chambers
Redding, California -t•
September 28 , 1981 4 : 30 P.M.
111The meeting was called to order by Mayor Pugh with the following
Council Members present: Demsher, Fulton, Gard, and Kirkpatrick
Also present were City Manager Brickwood, Assistant City Manager
Courtney, City Attorney Hays , Electric Director Lindley, City
Clerk Richter, and Secretary to the City Council Rupp.
A
ACQUISITION OF SURFACE RIGHTS - Geothermal Land
City Attorney Hays submitted for Council consideration, the s
proposed acquisition of surface rights on the Palmieri property
in the known geothermal land area. He stated the Palmieri
property is in an area where CCPA is bidding on the Federal
mineral rights and added that the surface rights now belong to
the property owners and must be obtained before any drilling can
be done.
•
Mr. Hays stated it is staff ' s recommendation that Council
approve a Memorandum of Understanding with the Palmieri property
owners for surface rights in the amount of $55 ,000 per year.
This amount would be split three ways, based upon three wa44
percentages , by the members of M-S-R. Redding' s share would be ILff
f
15% of $55 ,000 for the first year. Mr. Hays explained that this
amount also includes a 21/2% royalty payment on steam. He stated1
that all upfront costs will be recovered if steam is found. I6
In response to an inquiry from Council Member Gard, Mr. Hays
advised that if someone other than CCPA gets the mineral rights,
that party would have to deal with us for the surface rights.
MOTION: Made by Councilman Demsher, seconded by Councilman
Kirkpatrick approving a Memorandum of Understanding between the
City of Redding and the Palmieri property owners for surface <,
rights, and authorizing the Mayor to sign. The Vote: Unanimous
Ayes
Mayor Pugh noted that the $55 ,000 is for the first year of
operation and at the end of that year, we have the option to
extend for another five years.
The City Attorney suggested that a trip to this area would
assist Council in a better understanding of the area and its
relationship to other developments.
ADJOURNMENT
There being no further business , at the hour of 4 : 40 P.M. , Mayor
Pugh declared the meeting adjourned.
APPROVED:
M.17-6/-
ATTEST:
.yorATTEST:
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City C erk
9/28/81