Alturas City Council
Special Meeting
City Hall Council Chambers
July 29, 2024 at 9:00 a.m.
Alturas City Council Mayor Paul Minchella called the special meeting to order at 9:00 a.m. in the City of Alturas Council Chambers. Councilmembers present: Duanna Knighton, Paul Minchella, Brian Cox, and Jennifer Engel. Councilmembers absent: Jodie Larranaga. Staff present: City Treasurer Dorothy Long and Director of Public Works Warren Farnam. Public attending: None.
Director of Public Works Farnam started the meeting advising the council of a date change needing to happen on the resolution in the packet. The date should read July 29, 2024 not July 25, 2024 for the adoption date. He then provided the council with a brief background on the existing purchase agreement for the property (APN 022-130-042) to put the new waste water treatment plant. The original purchase agreement was executed in 2020 along with one extension. Farnam informed the council that he was advised that under the direction of past city attorney, the City could file an additional extension for the purchase agreement.
After close review by Farnam, that was determined to not be the case and there is a close frame and need to proceed forward with the purchase as stated in the original agreement. Farnam told the council the funds to purchase would come from the Sewer Reserve Fund.
Director of Public Works Farnam also informed the council that the City is still actively working on submitting the grant for construction of the new plant, but explained that there isn’t any time to wait for award at this point. Farnam met with the property owner and there were a few flags raised about the purchase such as concerns for the project by the property owner, a note on the property that would need to be released by the bank, and ultimately that the closing of escrow would be depend on the bank releasing that note.
Councilmember Cox inquired about the money invested in the property to assure that it was useable for the project. Director of Public Works Farnam and City Treasurer Long both stated that it was well over a million dollars since the agreement was originally executed.
Councilmember Engel asked about the fines imposed on the City for being in the river and clarified about the project being used to defer those fines.
Mayor Minchella asked Director of Public Works Farnam if there was an option to finance the property and was advised that due to the timeline, that isn’t an option.
Councilmember Cox spoke about this matter being a budgetary concern and stated that it should be being tracked and that he commends Farnam for excellent work. Councilmember Engel responded that she feels for the City Treasurer Long in this matter as she is the only staff member that is still with the City since this matter originally started as there has been so much turnover in the Director of Public Works position.
Additionally, Councilmember Engel brought to light some blanks in the existing purchase agreement.
Director of Public Works Farnam explains that there were some struggles with communication as all documents should have been going to the past city attorney’s office and files have indicated that there wasn’t any additional documentation.
Councilmember Cox adds that there is a signed option agreement in the packet and that it is possible the title company has both sides of the signed and or notarized documents. He expressed interest in knowing if Placer Title has both sides of the notarized documents. Councilmember Engel stated that she would like Director of Public Works Farnam to speak with the current City Attorney about the strength that the City has on forcing escrow to close promptly due to the documentation having some blanks and gaps. Farnam agreed to reach out to Placer Title to inquire about the documents and further discuss the City’s position with City Attorney John Kenny.
Councilmember Cox stated that he feels comfortable making a motion for this to proceed forward with the changes mentioned at the beginning of the meeting.
MOTION by Councilmember Cox to adopt Resolution 2024-33 authorizing the Director of Public Works to execute all documents for the purchase of property APN 022-130-042, described in the 2022 purchase agreement for the new Wastewater Treatment Plant facility for $270,000 and all associated closing costs.
SECONDED by Councilmember Engel. ALL AYES
With no further business to come before City Council. MOTION by Councilmember Engel to adjourn the meeting at 9:36 a.m. SECONDED by Councilmember Cox. ALL AYES.
Respectfully,
Dorothy Long
City Treasurer