HomeMy WebLinkAbout _ 4.11(a)--Agreement Between McConnell and COR for Untreated Water Service to Lake Rdg Golf GI �" Y � F
� � � ° � � � " � � CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: April 18, 2023 FROM: Chuck Aukland, Public
ITEM NO. 4.11(a) Works Director
***APPROVED BY***
ukl�n�l,H'ciblic Wc�aks L'�ireGt ' 4.�'6/2423 t�a�e �, e, ss � �r 4/l0/2023
caulcland@ci.redding.ca.us btippin@cityofredding.org
SUBJECT: 4.11(a)--Authorize the Mayor to Execute a Cooperative Agreement Between The
McConnell Foundation and the City of Redding for Untreated Water Service to Lake Redding
Golf Course
Recommendation
Authorize and approve the following:
(1) Authorize the Mayor to execute an Agreement for Untreated Water Service to Lake
Redding Golf Course (Agreement) with The McConnell Foundation. The agreement will
require The McConnell Foundation to pay for all expenses associated with the operation
and maintenance of the Union Pacific Railroad Pump Ilouse, including waterlines to the
Lake Redding Golf Course; and
(2) Find that the action is exempt from review under the California Environmental Quality
Act Guidelines (CEQA),per Section 15061(b)(3)—Common Sense Exemption.
Fiscal Impact
There is no net fiscal impact. The agreement will require The McConnell Foundation
(McConnell) to furnish all necessary funding, adjusted annually, to operate and maintain the
Union Paci�ic Railroad Pump House (Pump House), associated infrastruct�ure, and the lease
agreement between the City of Redding (City) and the Union Pacific Railroad (Railroad).
Alternatzve Actzon
The City Council (Council) may choose not to authorize the Mayor to execute the agreement and
provide alternative direction to staff.
Report to Redding City Council Apri111, 2023
Re: 4.11(a)--Agreement Between McConnell and COR for Untreated Water Service to Lake
Rdg Go1f Page 2
Background/Analysis
On September 4, 1990, the City and Leah F. McConnell entered into an agreement to provide
untreated water service for irrigation-only purposes to the Lake Redding Golf Course (Golf
Course). On May 6, 2003, and again on October 28, 2013, the City and McConnell updated the
agreement. The source of water is an infiltration well (Pump House) owned by the Railroad,
which the City has leased for many years. The Pump House is located on Railroad right-of-way
generally below the trestle adjacent to Caldwell Park, as depicted on the attached map.
Under the lease agreement, the City is responsible for the continued maintenance of the 8-inch
water main from the Pump House to the Golf Course, the two pumps and motors, and the Pump
House structure. The City is obligated to return ownership of the Pump House to the Railroad in
as good or better condition than it was at the time of the original leasing.
The City entered into the lease agreement because the Railroad was unwilling to lease the Pump
House to any private party for private use, such as the Golf Course. At the time, and again in
2003 and 2013, the Council deemed it to be in the best interest of the City, its citizens, and the
public in general to make this water available to the Golf Course for irrigation purposes.
The main points of the agreement with McConnell are as follows:
• McConnell will continue to pay into a "Facility Maintenance Fund" which shall be
used for the purpose of repairing and replacing the pumps, pump motors, and other
equipment as well as repairing the 8-inch steel water main to the Golf Course.
• McConnell will continue to pay monthly into a "Service Fund" to cover the cost of
maintenance by personnel from the City's Water Division for the Pump House
facilities.
• McConnell will continue to pay monthly electric utility costs required to deliver water
to the Golf Course.
• McConnell will continue to pay all monthly water charges for untreated Sacramento
River water to irrigate the Go1f Course, which includes the City's Bureau of
Reclamation contract raw-water costs comprised of Central Valley Project
maintenance costs (blended rate of settlement and service contract costs), Central
Valley Project Improvement Act restoration costs, and Trinity Public Utility District
assessment.
• McConnell will continue to pay the annual rent to the Railroad which is charged to
the City to have the Pump House facility maintained on Railroad property.
• McConnell shall maintain the City's insurance requirements throughout the term of
the agreement.
• The term of the agreement will be ten years.
The agreement has been approved as to form by the City Attorney and the respective legal
representative of The McConnell Foundation.
Report to Redding City Council Apri111, 2023
Re: 4.11(a)--Agreement Between McConnell and COR for Untreated Water Service to Lake
Rdg Go1f Page 3
EnviNonmental Review
Staff has reviewed the action and determined it is exempt from review under the CEQA
Guidelines, per Section 15061(b)(3) — Common Sense Exemption. CEQA applies only to
projects which have the potential for causing a significant effect on the environment. The
agreement will provide continued funding for the operation and maintenance of the Pump House
and the lease agreement with the Union Pacific Railroad. The agreement will not result in
physical alteration of the environment. It can be seen with certainty that there is no possibility
that the activity may have a signi�cant effect on the environment.
Council PNio�^ity/City Manager Goals
� Communication and Transparency — "Improve the quality of communication with the
public and City employees to enhance knowledge and increase transparency to improve
public trust."
Attachments
Agreement
^UPRR Pump House Location Map
^Notice of Exemption
AGREEMENT F(�R UNTREATED WATER
SERVICE TD
LAKE REDDING GOLF COURSE
THIS AGREEMENT is made at Redding, California, by and between THE CITY
OF REDDING, a Municipal Corparation ("City'), whose address is 777 Cypress
Avenue, Redding, CA. 96001 and The McConnell Foundation, a California Non-Profit
Corporation ("Faundation") address is 8Q0 Shasta View Drive, Redding, CA 96003, for
an Agreement ("Agreement") for Maintenance of the Unian Pacific Pump House for
Untreated Water Service to Lake Redding Golf Course.
WITNESSETH:
WHEREAS, for many years the City has provided untreated water to the Lake
Redding Golf Course solely for irrigation purposes, using as a source a well owned
by Union Pacific Railroad Company and is generally located as depicted on Exhibit
A, attached and incorporated herein, hereinafter referred to as "Railroad" which City
has leased for many years; and
WHEREAS, under the lease between City and Railroad, City is responsible
for the continued maintenance of the pumps and motors in said well and is obligated
to return the well to the Railroad in as good or better condition than it was of the time
of the original leasing, in the event of any cancellation of the existing lease; and
WHERERS, the sole use of water from said well is and has been for irrigation
service to the Lake Redding Golf Course; and
WHEREAS, Railroad has expressed its unwillingness to lease the aforesaid
well to any private party for a private purpose; and
WHEREAS, it is deemed by the City Cauncil to be in the best interests of Gity,
its citizens and the public in general to make this water available to the Lake Redding
Golf Course and to preserve the water rights of any kind or nature represented by
this well through its continued use and operation;
NOW, THEREFORE IT IS AGREED by and between the parties hereto as follows:
1. City agrees to deliver to Foundation through existing waterlines to the Lake
Redding Golf Course as much of the water from such well source as
Foundation needs to irrigate the golf caurse up to the total amount of wat�r
produced by the existing pumps and mators or any replacement thereof of
equal size and capacity, and to maintain, for the Foundation, the existing
pumps, motors and water lines from the well to the golf course and, if
necessary, to replace same for the term of this agreement, subject to the
terms and considerations set forth below. The City will nat be responsible for
water volume reductions due to low river levels from which the existing
equipment cannot pump.
1
2. The term of this agreement shali be ten years commencing May 1, 2023,
and terminating May 1, 2033. This agreement may be e�ctended for an
additional period by mutual written consent of the parties hereto.
3. This Agreement may be terminated as follows:
(a) City may terminate this agreement:
(i) in the event Foundatian fails to comply with any of the terms and
conditions herein contained to be performed by Foundation within
thirty (30) days after notice by City to Foundation of the existence
of a breach of such term, candition or agreement and Foundation's
continuation of the aforesaid breach;
(ii) in the event Railroad terminates the lease with the City for use of
the well;
(iii) on the failure of Foundation to comply with any lawful notice
given by Gity to pay rent or to quit the premises;
(iv) should Lake Redding Golf Course cease to be a golf caurse
open to the public on a regular basis.
(b) Foundation may terminate this Agreement upon giving City
ninety (90) days written notice.
4. As consideration for the water service provided by City herein,
Foundation covenants and agrees to pay to Gity, monthly, in arrears,
on or before the fifteenth day of the following month during the term of
this agreement, the following sums of money:
Facility Maintenance Fund
(a) At the time of commencement of this Agreement, a fund with a balance of
$25,000.00 shall be established. The fund shall be used for the purpose
of repairing, and replacing the pump, pump motor, and other equipment,
and repair of the 8-inch steel water main to the golf course, which is the
subject of this Agreement. At any such time as the total sum in the
account drops below $25,000.00, the sum of Five Hundred and 001100
($500.00) per month shall be paid to City to increase the accaunt to
cover the cost of repairs and or replacement as described herein. At such
time as the total sum in the account reaches $25,000.00, payments shall
cease until such time as pump and motor repairs are made and
replacement of all or a portion of such funds again becomes necessary.
At the termination of this Agreement, City shall refund the balance in this
fund to Foundation, after making any necessary repairs, etc.
Service Fund
(a) Foundatian shall pay Three Hundred Thirty-Seven and 17I100
Dollars ($337.17) per month throughout the term of this agreement
as and for an offset charge to cover the cost of the Gity water
personnel ta maintain the pumps, motors and lines required to
continue the water service to Foundation as provided for herein.
This sum shall be increased by the Consumer Price Index (CPI)
2
annually on the anniversary date of the agreement.
Electrical Costs
(a) Foundation shall pay the City the monthly electrical metered fee
for electrical energy required ta power the pumps and other
incidental needs to deliver water to the galf course;
Water Charges
(a) Foundation shall pay monthly water charges for untreated
Sacramento River water to irrigate the golf course, calculated in
acre feet as follows:
(i) Monthly metered flow in acre feet at the M&I full Cost of
Service Rate based on the Bureau of Reclamation water rate
setting policy baok for full cost of water, adjusted annually,
per acre foot.
(ii) Monthly Central Valley Project (CVP) Restoration Fund
charge, per acre foot, based upon the Central Valley Project
Improvement Act (CVPIA), Public Law 102-575. As
adjusted annually upon notification of the CVP Restoration
Fund charge amounts.
(iii) Monthly Trinity Public Utilities District (Trinity PUD)
assessment, per acre foot, based upon Public Law 106-377.
As adjusted annually upon notificatian of the Trinity PUD
assessment amounts.
(iv} Notwithstanding the foregoing, Foundation may opt to utilize its
own water to irrigate the golf course, in which case it will not be
responsible for the water charges set forth above provided that
it does not do so more than four consecutive years at any time
during the term of the Agreement.
Rent to Railroad
(a) Foundation will pay the annual rent the Railroad charges the City to
have the pumping facility maintained an Railroad property. This will be
the full cost of the rent charged the City by the Railroad. For 2022-
2023 the rent is Three Hundred Ninety-One and 23J1 QO Dollars
($391.23) per month or Four Thousand Six Hundred Ninety-Four and
76I100 Dollars ($4,694.76) per year. Rent payment shall be prorated
over a 12-month period.
5. Foundation covenants and agrees that nane of the water furnished
pursuant to this agreement shall be used far domestic purposes and
covenants and agrees that it shall hold the City, its officers, agents and
employees, harmless from any and all claims of injury by any persons
whomsoever, or any liability whatsoever, resulting from the use or
consumption of any of the water delivered by City pursuant to the terms of
this agreement to the Lake Redding Golf Course.
3
6. It is further covenanted and agreed by Foundation that nothing in this
agreement shall create any interest in Foundation in and to said well or
any water lines attaching to said well beyond the rights to water service
as expressly provided for by the terms af this agreement.
7. If Foundation should default as to any of the conditions, covenants and
agreements herein contained and City, having knowledge of such breach,
such failure an its part shall not be construed as a waiver of such
conditions, covenants or agreements and the right of termination shall
remain in full force and effect unless expressly waived in writing, nor shall
the right to give or withhald consent in any case be deemed to be waived
on account of a prior waiver thereof.
8. Time is of the essence of this agreement and each and every provision hereof.
9. Any notice or demand that may be given by either party hereunder,
including notice of default and notice of termination, shall be deemed to
have been fully and properly given when made in writing and enclosed in
a sealed envelope and deposited in the United States mail with postage
prepaid, addressed as follows:
Foundation at 800 Shasta View Drive, Redding, CA 96003, Attn: John A.
Mancasola, CEO; and to City at Office of the City Clerk, 777 Cypress
Auenue, Redding, CA 96001.
10. If Foundatian should be adjudged bankrupt either by voluntary or
involuntary proceedings or make an assignment for the benefit of
creditors or said premises should come into possession and control of
any trustee in bankruptcy, or if any receiver should be appointed in any
action or proceeding with power to take charge, possession, eontrol or
care of said property, City shall, subject to paragraph 13, have the option
to forthwith terminate this agreement. In no event shall this agreement be
deemed an asset of Foundation after adjudication in bankruptcy.
11. Insurance Requirements for Lake Redding Golf Course
A. Unless modified in writing by City's Risk Manager, Foundation shall
maintain the following noted insurance during the duration of the
Agreement:
Coverage Required Not
Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers' Compensation and Employers' X
Liabilit
4
Professional Liability (Errors and 4missions) X
(Place an "x" in the appropriate box)
B. Coverage shall be at least as broad as:
1. Insurance Services Office form number CG-0001, Commercial
General Liability Insurance, in an amount not less than
$1,00O,OOQ per occurrence and $2,000,000 _general aggregate
for bodily injury, personal injury and property damage;
2. Insurance Services Office form number CA-0001 (Ed. 1/87),
Comprehensive Automobile Liability Insurance, which provides
for total limits of not less than $1,oaa,Q00 combined single limits
per accident applicable to all owned, non-owned and hired
vehicles;
3. Statutory Workers' Compensation required by the Labor Code
of the State of California and Employers' Liability Insurance in
an amount not less than
$1,000,000 per occurrence. Both the Workers' Compensation
and Employers' �iability policies shall contain the insurer's
waiver of subrogation in favor of City, its elected officials,
officers, employees, agents and volunteers;
4. Professional Liability (Errors and Omissions) Insurance,
appropriate to Foundation's profession, against loss due to error
or omission or malpractice in an amount not less than
$1,000,000.
5. The City does nat accept insurance certificates or endorsements
with the wording "but only in the event of a named insured's sole
negligence" or any ather verbiage limiting the insured's
insurance responsibility.
C. Any deductibles or self-insured retentions must be declared to and
approved by City. At the option of the City, either: the insurer shall
reduce or eliminate such deductibles or self-insured retentions as
respects the City, its elected officials, officers, employees, agents and
volunteers; or the Foundation shall procure a bond guaranteeing
payment of losses and related investigations, claims administration and
defense expenses.
D. The General Liability shall contain or be endorsed to contain the
following provisions:
1. City, its elected officials, officers, employees, and agents are to
be covered as additional insured as respects liability arising out
of work or operations perFormed by or on behalf of Foundation;
5
premises owned, leased or used by Foundafiion; or automobiles
owned, leased, hired or borrowed by Foundation. The coverage
shall contain no special limitations on the scope of protection
afforded to City, its elected officials, officers, emplayees, agents
and valunteers.
2. The insurance coverage of Foundation shall be primary
insurance as respects City, its elected officials, officers,
employees, agents and volunteers. Any insurance or self-
insurance maintained by City, its elected officials, officers,
employees, agents and volunteers, shall be in excess of
Foundation's insurance and shall not contribute with it.
3. Coverage shall state that the insurance af Foundation shall apply
separately to each insured against whom claim is made or suit
is brought, except with respect to the limits of the insurer's
liability.
4. Each insurance policy required by this Agreement shall be
endorsed ta state that coverage shall not be canceled except
after thirty (30} calendar days' prior written notice has been given
to City. In addition, Foundation agrees that it shall not reduce its
coverage or limits on any such policy except after thirty (30)
calendar days' prior written notice has been given ta City.
E. Insurance is to be placed with insurers with a current AM Best's rating
of no less than A-VII.
F. Foundation shall designate the Gity of Redding as a Certificate Holder
af the insurance. Foundatian shall furnish City with certificates of
insurance and original endorsements effecting the coverages required
by this clause. Certificates and endorsements shall be furnished to:
Risk Management Department, City of Redding, 777 Cypress Avenue,
Redding, CA 96001. The certificates and endorsements for each
insurance policy are to be signed by a person authorized by the insurer
to bind coverage on its behalf. All endorsements are to be received and
approved by the City's Risk Manager prior to the commencement of
Agreement services.
G. The requirements as to the types and limits of insurance coverage to
be maintained by Foundation as required by Section 11 of this
Agreement, and any approval of said insurance by City, are not
intended to and will not in any manner limit or qualify the liabilities and
obligations otherwise assumed by Foundation pursuant to this
Agreement, including, without limitation, provisions concerning
indemnification.
6
H. If any policy of insurance required by this Section is a "claims made"
policy, pursuant to Code of Civil Pracedure § 342 and Government
Code § 945.6, Foundation shall keep said insurance in effect for a
period of eighteen (18) months after the termination of this Agreement.
1. If any damage, including death, personal injury or property damage,
occurs in connection with the performance of this act, Foundatian shall
immediately notify City's Risk Manager by telephone at (530) 225-
4068. Na later than three (3) calendar days after the event, Foundation
shall submit a written report to City's Risk Manager containing the
following information, as applicable: 1) name and address of injured or
deceased person(s); 2) name and address of witnesses; 3) name and
address of Foundation's insurance company; and 4} a detailed
descriptian of the damage and whether any City property was involved.
12. Except as pravided for in paragraph 13, Foundation shall not, without prior
written consent af City, assign this agreement, or any interest therein, or
underlet or sublet the whole or any part of the water ta be provided pursuant
to the terms of this agreement. Any purported assignment, either direct or
by operation of law or under or in pursuance of any order, judgment, decree
or pracess of any Court, shall be whally void and shall, at the option of City,
work a forfeiture of this agreement. The consent of City to the first or any
other assignment shall not be a consent to any subsequent assignment, but
the prohibition against assignment withaufi consent shall continue in force
as against any assignee.
13. Nothing in this Agreement shall prohibit Foundation from assigning its rights,
under this agreement without prior written consent of City, to the then
operator and or lessee of the real property commonly known as Lake
Redding Golf Course.
14. Subject to the prohibitions herein respecting assignment, underletting or
subletting, all conditions, covenants and agreements herein shall inure to
the benefit of and be binding upon the successors and assigns of the
respective parties hereta.
�
I ITNESS HEREQF, City and Foundation have executed thi� Reimbursement Agreement
an the days and year set forth below:
CITY t'�F REDDING,
A 11��r�i�ipal �o�paaration
Dated: , 2023
By: ICHAEL DACQUISTO, AYOR
ATTEST: APPROVED AS TO FORM:
B�4RRY E. DeWA�T
City Attc�rney
PA ELA IZE, Cifiy Clerk y:
THE McCClNNELL FUUNDATION
,
Dated: _�1�t � , 2023
: J�H ,4. ANCAS4LA
President & CEC3
Ta� ID Na.: 94-6�Q2700
Attachments:
Union Pacific Pump House Location
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NOTICE QF EXEMPTIQN
TO. ❑ Of�ce of Plannitlg and Researcli FROM: City of Redding
1400 Tenth Street,Room 121 Public Works Department
Sacramento, CA 958T4 777 Cypress Avenue
Redding; CA 96001
� Shasta County Clerk
Couniy of Shasta
P:O.Bax 990$80, 1643 Market 5treet
Redding,CA 96099-0880
Pra,�ect Title: Citv of Reddin�atid McConnell Foundation Cooperative A�reement
Project Lacation—Specifcc Cit�of Reddin�
Praject Location—City: Redding Project Lacatian—County: Shasta
D►escriptian af Project: The Citv of Reddial� will execute a cooperative a�reernent (�reement) witli t11e McConnell
Foundation for untreated, nondomestic water service to tlle Lake Reddin�Golf Course Tl1e a�reement will require the
McConnell Foundation to �av foi- all expenses associated with the operation and maintenance of tlle Union Pacrfic
Railroad Pump House, includin�- wateriznes to the Lake Redding Golf Course acld tha lease a�reement with the Unian
Paeific Railroad.
Name af Pnblic Agency Approving Project, City of Reddin�
Name of Person or Agency Carrying Out Proaect: Josh Watkins, Water Utili Manager
Ex�mpY Status: (claeck one)
Cl Ministerial [Sectian 21Q80{b)(1); 15268]
❑ Declared Emergency[Section 21d80(b)(3), 15269(a)]
❑ Emergency Project [Section 21080(b)(4); 15269{b)]
❑ Statutory Exemptions. State code namber;
� Comman Sense Exemption (This praject does not fall within an exempt class,but it can be seen with certainty that there is
no possibility thatthe activity may have a significant effect on the environment(14 CGR 15U61[b][3]}.
❑ Categarrcat Exemption. State type and sectican number:
❑ Na exceptions apply that wauld bar tlle use af a categorical exemption(PRD 21084 and 14 CCR 15300.2).
Reasans why projecf is exem�t4 CEQA applies oa�l t�o projects whicla l�ave the potential for causin�a srgnificant effect
on the enviranlnent. The a�reement wi11 provrde continued funding for the operation and maintenance of the Pump House
and the lease a�reement witli the Unio�1 Pacific Railroad. The a�reement will not result in ph�sical alteration of tlie
environment. It ean be seen with ceitainty that thera is no possibility that the activitv rnav have a si�nificailt effect on the
environment.
Lead AgencyContactPerson: Amber Kellev Telephane: 530:225.4046
If Filed by Applicant:
1. Attacll cet-tified document of exemption finding.
2, Has a notice of�xempti�n been filed by tlle public agency approving the project? o Yes ❑No
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Titlet Environmental Corn liance Ma `er
�Signed by Lead Agency Date received for filing at OPR:
❑ Signed by Appiicant