HomeMy WebLinkAboutMinutes - City Council - 1958-01-09 X'
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, - City Council, Adjourned Meeting� � .
Council Chambers, City Hall
� - ;Redding, Califomia
January 9, 1958 7:00 P. M.
The meeting wae called to order by Mayor Fleharty wi�th the follow,ing Council-
men present: Fulkerth, Kelly, Puryear, Simons and Fleharty.
City Manager Cowden, City Attorney Cibula, Assistant City Attorney-Mar�ager
Ness, Director of Public Works Marron, Planning Director- Evan�s, �Engineer ,
Harding and Electrical Superintendent Dais were also present, ,
APPROVAL OF CLAIM�
MOTION: Made by Councilman Simons, seconded by Councilman Fulkerth
that Claims in the amount of $8, 011, 33, Regi.ster No. 15, Warrant Nos, 7189 .
to 7219 inclusive be approved, � • � .
rd� Voting was as follows:. . '
Ayes: Councilmen - Fulkerth, Kelly, Puryear, Simons and Fleharty
Noes: Councilmen - None �
Absent: Councilmen - None
TRINITY RIVER PARTNERSHIP PROPOSAL
Mayor Fleharty introduced Mr. Leigh Smith, Division Manager of the Pacific
Gas and Ele,ctric Co. M;r. Srriith:presented a statement regarding the position
of his Gompany in the proposed partnership of the Trinity River Project. Here
follows a copy of the statement furnished to the.City Clerk�by Mr.� Smith. �The �
portions shown in parenthesis at various places throughout the statement is from
, . notes taken by the Clerk of extemporaneous remarks made by Mr, Smith as he
presented the statement. :
REDDING SHOU LD NOT OPPOSE
TRINITY JOINT DEVELOPMENT �
The Redding City Council should not adopt the proposed resolution
against joint development of the Trinity water power resources by
the United States and Pacific Gas and Electric Company.
Trinity Joint Development will save federal taxpayers $56 milliondollars
�, _ ,:•s in capital outlay for power facilities. During the project
repayment period, the Company payments for falling water and gro-
��,lj ject savings will provide a net gain of $165 million dollars more
net revenue to the Central Valley Project than under all Federal
development. Federal tax revenues on the Company's operation will
amount to $83 million dollars and state and county treasuries will
receive $62 million dollars more,
The Council should not v�te against these public benefits totaling
$310 million dollars. These funds can be used to reduce the cost
of water in Shasta County and throughout the state. This additional
incoxne to Federal, State and local treasuries will lessen the burden
on all taxpayers, including the residents of Redding. It can make
the Trinity Project feasible and help finance other urgently needed
water projects which will benefit all citizens of California �ricluding
the people of Red'cling.
The Company's annual tax payments in Shasta County would increase
to $3, 170, 000, which is more than one-half of the County's total �
tax leyy. Tax revenues to Shasta County on the Company's Trinity
facilities would be $609, 000 per year. This substantial additional
income will favorably affect the full area. It can be assumed
that this will be weighed by the voters in your city in deciding their
attitude� on any action you may take in attempting to deny them the
the benefits of joint development. ,
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� The Bureau is not in a po.sitian and has not offered to supply the power
requirements of the city, The Bureau has informed its existing
customers that there will not be en�ugh power from present Central �al-
ley Project Plants ta supply their needs.
(The Bureau in a letter to its customers in 1956, anticipated that a .
,. limited amount of power would be available in the future, ),
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Assuming the Government should construct the Trinity power facilities,
and the San Luis Project on which hearings are to be held in Washington
next week, the Bureau of Reclamation studies show that the net additional
power available for sale tfl all Central Valley power cus.tomers would
be only 20, 000 kilowatts. .
(Bureau of Reclamation studies show that only Z0, 000 kilowatts additional
power would be available, This would not be sufficient to meet require-
S ments of existing customers, ) , ,
I suggest that the power study recently submitted to this Council be �
given expert independent review before ariy-of vou takes action in reliance
on it. The study alleges that in 50 years th'e City will require over �six
billion kilowatthours a year. At the City's present load factor, this
would mean a demand of over 1 million 5 hundred thousand kilowatts.
, (The power load is expanding everywhere. , The Bureau could supply
only a small part of the demand. Additional costs in expansion of
' Bureau Facilities-would reflect in higher Bureau Rates. )
Now is not the time for Redding:to decide whether it should purchase
` bureau power or coxnpany power, The people of Redding voted in 195Q
to buy power from the.. Companya , In 1955 the Council followed this _
mandate and renewed the Company contract. The voters wilL not be in -� '3�
a position to decide this matter again until they know what the Bure,au
and the Company have to offer in 1960, when our present contract �
'terminates. Certainly the City Council in no event should arrive at
a conclusion as tfl the purchase of federal power until it has received
a specific offer froxn the Sureau showing the am�unt available and ,
the price the City would be required to pay.
I respectfully submit that.the advantages to the people of Redding inL
tax savings and water development fr�m the Trinity Partnership far
outweigh any benefits from the remote possibility that under a11 Federal �
Trinity Project the City might be allowed to purchase any. substantial
amount of Federal power.
(Paragraph 4 in Mr. Marron's repor_t is in error. The rate increase
was 7. 54%. In 1957 it increased to 7. 55%. The average increase to - '
� the retail customer was 7. 5�%e )
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Mr. Smith thanked the Council for allowing him the opportunity to make this
statement, , _ _ . � ,
Councilman 5imons commented that Mr. Smiths figures are very astronomical, _
impressive and something to think about, He had supported private owner�ship in
1949 and still d�?eS• He would support P. G, & E, now under 1949 conditions.
The Bureau didn't offer contract provisions in 1949 that it offers now. The revenue
from the electrical distribution system means a lot in running the gavernment of
' the City. The Council must�endeavor to buy p�wer from the cheapest source.
Adequate power may not be avail�able but it will mean a tremendous sav�.ng�,to the
� City if it is availabl,e, ' �
Councilman Puryear-statedKhe opposes the Trinity Partnership Proposal in order
to insure low cost power to Redding if such power is available. The City is in
business and must obtain cheapest power possible.
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Councilxnan Fulkerth remarked he is not in favor of government ownership but
from an econflmic standpoint the City xnust choose between the cheapest of two
wholesalers. �
Mr. 5mith reemphasized :th'at the ec�nomy of Shasta County is important to the .
City of Redding,� . It is predicted that the tax levy in Shasta County would amount
to $30, 000, 000. in the next fifty years under the proposed Trinity Partnership.
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, Mayor Fleharty reported that a number of studies he has reviewed do not
indicate an inadequate supply of power would be available. On �he basis of
an impartial report of the Department of the Interior, all the members of
the Northern California Municipal Electric Assoc'iation expect tb fulfill their
power needs from the Bureau. '
Paul Bodenhamer, Editor` of the Redding�Reco'rd,Searchlight rei"terated his view
regarding Bureau Power. "It is in the best 'interest of the City of Redding to see
that we have a choice".
RESOLUTION - NO CALIF. MUNICIPAL ELECTRIC ASSOC.
The Resolution of-the NCMEA was read as follows: - '
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. A RESOLUTION OF
THE NORTHERN CALIFO�t.NIA MUNICIPAL ELECTRIC ASSOCIATION
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THE NORTHERN CALIFORNIA MUNICIPAL EL;E'CTRIC'ASSOCIATION, re-
presenting every electrical municipal distribution system in Northern California,
comprised of the following member Cities: Lodi, Santa Clara, Healdsburg, Palo
Alto, Redding, Roseville, Ukiah, Alameda, Biggs, Gridley and Lorripoc, in the
best interests of its member communities�and their economic prosperity,
��' �S hereby resolves: �
1. That it is the responsibility of all communities represented to seek
power f;o�r- their electrical distribution systems at the lowest cost possible,
2. THat the Trinity River Project offers the last opportunity for a low cost
major power supply for the members of this Association.
3. That revenues generated from the operation of these electrical, systems
are of vital,im�ortance to� the economy of these rapidly expanding Western com-
muniti e s.
. 4. That in order to sustain these econoxnic demands and seek the lowest
cost power available, we must oppose any attempt by a private utility to super-
cede our rights as public agencies to first call �n power.developed through ex-
penditure of public funds.
NOW, THEREFORE BE IT RES�.-OLVED, th�.t the NORTHERN CALIFORNIA
MUNICIPAL ELECTRIC A5SOCIATION hereby rec�rds its unanimous opposition ,
to the Pacific Gas and Electric Company's praposal for "partnership", in the �
construction of the Trinity River�ProJect and its power generating facilities.
ACCORDINGLY, the member cities furthe'r resolve that the Federal
Government immediately proceed to construct the af�rementioned generating
facilities ��and=that,�favo�r•able consideration be given td any applicati�n of these �
member cities for the purchase of a portion of the electrical generating 'capacity
of the Trinity River Project.
, This resolution ad�pted by unanimous action of the member cities on
Tuesday; January 7, 1958 in a zneeting he�d in Palo Alto, California.
� - - Fflr the Association by:
•/H. D. Weller, President / J. �Iieithl;e,y,,� '
H. D, Weller, President J, Keit;hley, Secretary-Treasurer
RESOLUTION OPPOSING TRINITY PARTNERSHIP PROPOSAL �
City Attorney Cibula read the following Resolution:
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-`:«='�-��,+;
RESOLUTION No. 2306
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING OPPOSING THE PARTNERSHIP PROF'OSAL FOR
DEVELOPMENT OF TRINITY RIVER POWER, AND AUTHOR-
IZING M.AYOR GEORGE C. FLEHARTY TO REPRESENT THE
CITY OF REDDING AT THE HEARINGS IN WASHINGTON, D. C.
WHEREAS, the City of Redding is, and has been for many years,
engaged in the distribution and sale of electrical enerby to residents of
said C�ity, and
WHEREAS, the City Council is responsible for the efficient
�business administration of the system of distribution of said electrical �
energy within said City, and
WHEREAS, said responsibility includes the procurement of
electrical power at the lowest possible cost in order to provide the lowest
rate to the consumer consistent with sound business practise, and
WHEREAS, the Trinity River Project is the last available source
of low-cost power�to the City of Redding, and
WHEREAS, the savings to the City of Redding over the next fifty
years would be substantial and�highly necessary to the maintenance of a
sound economy for said City of Redding, and
� WHEREAS, to�meet the demands required to sustain sai-d�,:sound
economy municipalities must get first call on power developed thr�ugh
the expenditure of public funds, and
WHEREAS, the Northern California Municipal Electric Association, ��-J=7r
of which the City of Redding is a member, has unanimously agreed to
oppose the partnership proposal f�r development of Trinity Riverp-ow�er,
and
WHEREAS, said Northern California M�unicipal Electric Association
has selected three representatives to appear before the hearings to be
held in Washington, D. C, on January 20, 1958, including Mayor Goerge C.
Fleharty of Redding.
NOW, THEREFORE, �BE I,T RE50LVED BY THE CITY GOUNCIL OF
THE CITY OF REDDING AS FOLLOWS, TO-WIT:
l. That all of the foregoing recitals are true and correct,
2, _ That it is deemed to be in the best interest of the City of Redding
to oppose the partnership proposal f�r development of Trinity River power
and to seek to obtain said Trinity River �;ower for the City of Redding by pur-
chase directly from the Federal Government.
3. That Mayor George C. Fleharty be and hereby is authorized to
attend the hearings in Washington, D. C, on January Z0, 1958, on behalf
of the City of Redding and the Northern California Municipal Electric Association.
I HEREBY CERTIFY that the foregoing resolution was introduced and
read at a regular adjourned meeting of the City Council of the City of Redding
on the 9th day of January, 1958, and was duly adopted at said meeting by the
following v�te:
AYES: COUNCILMEN: Fulkerth, Kelly, Puryear, Simons and Fleharty
, �NOES: COUNCILMEN: None
ABSENT: COUNCILMEN: None
Dated: This 9th day of January, 1958
/s/ George C. Fleharty
Attest: Mayor of the City of Redding
/s/ Dorothy C. Blood, City Clerk
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Form Appr�ved:
/s/ Alvin M. Cibula, City Attorney
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Mayor Fleharty expressed his gratitude that the Council sees fit to make
a decision such as this. Regardless of their individual friendships and beliefs,
he feels they would have been remiss if such a stand had not been taken at
this time. Eleven other Mayors in the NCMEA have called special meet-
ings this week to take this same action. '
SIDEWALK CONSTRUCTION - McConnell Property
Councilman Simons requested the Director of Public Works and the City
Manager and Legal Department to gather all information and present a
definite recommendation to the Street Committee based on Public Health '
and Safety and legal position of City with regard to the sidewalks constructed
at the Carl McConnell Building, northeast corner of East and Yuba Streets.
�j j Mayor Fleharty said he would be willing to discuss the problem on the spot
and arrive at a conclusion.
City Manager Cowden called attention to the fact that there would be con-
siderable work prior to Mayor Fleharty's trip to Washington, D. C. and
suggested that the matter be deferred until the Mayor returns.
Mayor Fleharty requested that a field meeting be set after January 20th
and issue will be resolved the first meeting in February,
INACTIVE AGENDA
Review of the Inactive Agenda was deferred.
There being no further business, it was moved by Councilman Simons, seconded
by Councilman Fulkerth.that the meeting be adj�urned, Motion carried.
APPROVED:
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OMayor �
Attest:
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Cit Clerk
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