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HomeMy WebLinkAboutMinutes - City Council -1975-05-29 75 City Council, Adjourned Regular Meeting Mayor's Conference Room, 760 Parkview Redding, California May 29 , 1975 7:00 P. M. The meeting was called to order at 7:00 P.M. by Mayor Denny with the following Councilmen present: A.nderson, Demsher, Fulton, Pugh, and Denny. A.lso present were City Manager Brickwood, Assistant City Manager Courtney, Public Works Director Arness, Director of Planning and Community Development Harris , Director of Electric Department Simpson, Director of Personnel and Labor. Relations Reynolds, and City Clerk Brayton. BUDGET STUDY SESSION The Council Meeting was devoted to continued review of the 1975-76 Preliminary Budget and related matters as follows: , Electric Utility Director of Electric Department Simpson reviewed the Central Valley �'�� Project with respect to availability of wholesale power. He explained that 1 ,050 mg of power was allocated to preference customers through December 31 , 1980 and, of this amount, 150 mg is still available for load growth in the six preference customer agencies . There was a general discussion regarding the Electric Utility capital � %✓� improvement progr�nand, in reply to Councilman Pugh's inquiry, �(�,� Mr. Simpson said that the total capital improvement program summary for 1975-76 does not include equipment which is scheduled to be pur- chased from the Equipment Fund. The City Manager commented on �,he $20,000 in the. Preliminary. Budget for power source development. He stated that _he felt it was adequate to explore ��o.ther sources of power.,_ such as low head hydro, solid waste burning, and other potential sources. . In a discussion of Rancho Seco.-Unit 2 , the City Manager noted that $88, 0,0. is in the Preliminary Budget in the event the.City participates in the project. The ultimate total cost is _estimated to be approximately $17 million. Mayor. .Denny stated that he is opposed to. Redding's.participati,on in this project for the following reasons: l.) Nuclear power gene-ration .is-one of the most expensive of all of the alternative sources; 2) There is a very strong possibility that the nuclear initiative in June 1976 will pass, and_ any,monies that the City of Redding contributes to planning, design, and the construction of the project prior to the election will be lost; 3) It is predicted that, within the next 20 years , there will be a 40% increase_ in hydro power, and this development will occur principally in the Pacific Region; 4) Mr. Denny believes the cost of Rancho Seco- Unit 2 will exceed the estimate. In summary, Mr. Denny believes the City should seek other alterna- tives and is confident that power sources , other than� nuclear, will.be available to.the City when needed. He stated-that it is .possible that the City's allocation by the Bureau may be increased after 1980. The question was raised as to what the City could do with its allocation of Rancho Seco power, if there were no need for it in Redding. Mr. Simpson stated that Redding would own the power and could sell it. 76 , Councilman Pugh favors Redding's participation in Rancho Seco- Unit 2. He said that, by leaving the $88,000 in the budget, Redding could keep its options open. With respect to the possibility of the project not going forward, he feels that 5MUD and P. G. & E, will look into the risk factor before investing too much money in the fact of the nuclear initiati�ve. Mr. Pugh noted that SMUD has given par- ticipants options and times to withdraw from the project, and said that the only way Redding can lose its investment is if Rancho Seco-Unit 2 is no longer a viable project and dies. Councilman DemsherI indicated support for participation in the project; he said he feels it is finsurance for the City. Councilman Anderson said he is interested in finding the cheapest possible source of power, but agrees with Councilman Demsher that Rancho Seco-Unit 2 appears to be good insurance. Councilman Fulton was also in agreement that ihe City participate in the project. ' City Manager Brickwood said he thinks the City has some time to think and plan. He commented that the average electric utility load in Redding is 45 megawatts, and that it peaked at 49 megawatts. Under the current USBR allocation, 60 mw is still available. A.t the conclusion of the discussion, the Electric Utility budget was tentatively approved without change. Water and Sewer I' ! A.ssistant City Manager Courtney explained proposed revisions to the Municipal Cod'e re sewer and water connection charges; i.e. , acreage fees, front footage fees, line taps , water meter and service charges. / �C� � There was a discussion regarding the need for an increase in water rates. Council was reminded by the Director of Public Works that � 3 � the City of Redding, Cascade Community Service District, and Enterprise Public Utility District have retained a consultant with � �'� � respect to defining alternative sources and recommending a water treatment process. Uertical infiltration wells are being considered � ' at a cost of approximately $1 million. The estimated cost of a water treatment plant is $4lmillion. I There was also a discussion regarding the need to raise sewer rates. Last year the sewer account was subsidized by the General Fund in the amount of approximately $240,000 . t Census �r City Manager Brickwood reported that the City has recently requested � � recertification by the State for a population figure of 18,400. He does c, not feel there would be any benefit from a special census until 1977 or �� 3� 1978. Mr. Brickwoo1d said it would take six to nine months to schedule a special censixs by the State . He does not feel an appropriation needs to be in the budget. Council was in agreement. , Transportation Plan f Mayor Denny recalled that, at an earlier budget sessiori, there was � Q discussion about allocating revenue sharing funds with respect to a �D� � transportation plan for the City. ��� City Manager Brickwood recommended that Council defer action on this matter pending further investigation and study. L_ __. --- ---- -- - -- -.._..�......._.___ __�-.______.__ . _ -- -- - - - 77 � Benton Airport Director of Planning and Community Development Harris reported that it is proposed that the $12, 000 appropriation in the 1974-75 �,5,� budget for landscaping at Benton Airport be spent for grading and a �Cj1 sprinkler system. The second phase of the project would be the planting, at an estimated cost of $22, 000. It was the consensus of Council that the City should proceed as pro- ; posed re the_$12 , 000 1974�-75 project. � ADJOURNMENT � - � There being no further business , at the hour of 9 50 P. M. , the Mayor declared the meeting adjourned. ,.:�: . , . � APPROVED: : - • a or A.TTEST: . it Cler , . . _ . .; �