Redding Council approves Ironman deal, sets March 3 hearing on electric rate hikes in contentious meeting

REDDING Calif. — The Redding City Council on Tuesday approved a three-year agreement to host an Ironman 70.3 triathlon but deferred the question of how to pay for it, and voted 4-1 to schedule a public hearing on four years of electric rate increases — but not before an extended clash over whether the utility had provided enough financial detail to justify moving forward.

The Feb. 17 meeting also marked the first regular session for new City Manager William Tarbox, who was formally introduced partway through the evening. It was his second day on the job.

Ironman: Deal approved, funding deferred

The council voted 4-1 to approve a memorandum of understanding with the Redding Tourism Marketing Group to bring an Ironman 70.3 branded triathlon to Redding on Aug. 16, 2026, with subsequent races in 2027 and 2028. Councilmember Tenessa Audette cast the lone dissenting vote. The approval came only after two failed motions and a protracted debate over the $53,000 annual cost.

As outlined in the staff report, the city's share covers police and fire overtime, shuttle service from the Civic Center to Whiskeytown Lake and miscellaneous expenses. Staff had recommended funding the cost from general fund reserves — a proposal that drew immediate objections from Councilmember Tenessa Audette, who noted the city's reserves are already projected to fall below thresholds established in council policy.

"We're at a deficit," Audette said. "Where's it actually coming from?"

Audette proposed renegotiating the city's existing contract with Visit Redding, the tourism marketing entity that receives transient occupancy tax revenue, to have that organization absorb the $53,000. The city attorney cautioned that directing a contract renegotiation would need to be agendized as its own item, since the other party was not on notice.

A motion by Audette, seconded by Mayor Pro Tempore Erin Resner, to approve the MOU and bring back alternative funding options with the Visit Redding discussion specifically included failed 2-3. Audette and Resner voted yes; Vice Mayor Paul Dhanuka, Councilmember Jack Munns and Mayor Mike Littau voted no.

Dhanuka then offered a compromise: approve the MOU and direct staff to return with a budget resolution presenting multiple funding options without specifying any single source. Munns seconded. That motion passed 4-1, with Audette casting the lone dissenting vote.

"This makes a great bold statement to the community and to Ironman that we want you here," Littau said before the vote. "We know we're going to get a return on revenue."

Staff estimated the event would generate roughly $152,000 in additional transient occupancy tax revenue during race week. The budget resolution will return at a future meeting, with the city's upcoming budget workshop process expected to provide a broader context for identifying funding.

Electric rate hearing: 4-1 with sharp questions on costs

The council voted 4-1 to set a March 3 public hearing on proposed Redding Electric Utility rate increases of 4.5 percent per year over four years, beginning with the April 2026 billing cycle. Audette cast the sole opposing vote.

The REU director's presentation framed the increases as driven by five converging pressures: surging power supply costs tied to California's zero-carbon energy mandates, aging infrastructure requiring $70 million in recently issued bond debt, unfunded regulatory mandates, wildfire mitigation costs in a Tier 3 high fire threat area and broad inflation that has pushed the cost of transformers up 100 percent and copper up 63 percent since 2020.

Staff said the utility had reduced a previously planned five years of 5 percent increases to four years of 4.5 percent, followed by a fifth year at 2 percent, through zero-based budgeting, holding vacant positions open and cutting discretionary spending. Average residential customers would see increases of about $7 per month in 2026-27 and $8 per month in 2028-29. Even with the increases, REU projects it would remain the lowest-cost provider in the region.

Audette pressed for greater transparency, particularly around personnel cost increases she said were not reflected in the materials provided to the council or the public.

"You're asking them to pay more," Audette said. "Personnel costs have gone up $9 million over the last budget cycle. That should also be included."

The REU assistant director of finance acknowledged that several labor agreements approved in prior years were never captured in budget resolutions at the time, creating a compounding effect that made recent budget-to-budget comparisons misleading. The REU director committed to providing a detailed breakdown of personnel costs at a public workshop scheduled for Feb. 26, ahead of the March 3 hearing.

"I think that's all valid, and I'm fully prepared to be fully transparent and put it all on the table for discussion," the REU director said.

Audette argued the hearing should be delayed until that information was publicly available. Dhanuka floated pushing the hearing to mid-March but staff warned that any delay past March 3 would push the effective rate date from April 1 to May 1, costing the utility a month of revenue the staff described as being in the millions.

Munns moved to set the hearing for March 3. Dhanuka seconded. The motion passed 4-1, with Resner voicing confidence that staff would deliver the requested documentation.

Tuesday's vote only sets the hearing date. No rate change can take effect without a subsequent vote by the council.

REU quarterly report: Utility outperforms budget

In a separate action, the council unanimously accepted REU's second-quarter financial report for fiscal year 2025-26. The utility outperformed budget projections through December, with net operating revenue exceeding the budget by 48 percent — driven by $1.2 million in above-budget retail sales from warmer-than-forecast weather and $4.8 million in lower-than-budgeted operating expenses, about half of which staff attributed to timing rather than permanent savings.

The unrestricted cash balance stood at approximately 96 days of cash on hand at the end of December — above the utility's 75-day policy minimum but well below the 150-day target. Staff said a pending $3 million bond reimbursement and the early termination of an outside line services contract would bring the figure to roughly 112 days.

Consent calendar

The council approved the consent calendar on a roll call vote with no items pulled. The package included authorization to apply for a $25 million federal BUILD grant for the South Bonnyview Diverging Diamond Interchange project, bridge construction contracts totaling nearly $8.2 million for the Westside Road and Eastside Road projects, $2 million in Oregon Street improvements and $40,000 for demolition of the former Bert & Ernie's sports bar at 825 Industrial St.

On the nuisance abatement item, staff returned with a revised funding proposal as the council had requested at its Jan. 20 meeting. The demolition will now be covered by salary savings from vacant positions in the Development Services Department rather than general fund reserves, resulting in a net-zero fiscal impact.

Audette also flagged the $689,226 traffic safety grant on the consent calendar, noting the application had been submitted to the California Office of Traffic Safety before coming to the council for ratification. She requested that once the grant funds are awarded, their specific allocation be determined in consultation with City Manager Tarbox — a request staff agreed to.

New City Manager Tarbox introduced

Littau formally introduced City Manager William Tarbox partway through the meeting, calling it his second day on the job — his first working day fell on a holiday. Tarbox was approved by the council on Jan. 6, 2026, at a salary of $295,000 following a national recruitment that drew debate over executive compensation.

"Everything that needs to be done in this city, which is fairly substantial, will be addressed," Tarbox told the council.

Dhanuka welcomed the fresh perspective, noting all five council members had supported the hire.

Other business

During public comment, a representative of a local Special Olympics chapter invited council members to upcoming events, citing 27 percent growth in participation and recognition for leading all of Northern California in fundraising.

A resident asked the council to provide police presence at political protests, describing traffic violations and noise directed at demonstrators at recent rallies. He said a police official told him the department lacked the resources to assign an officer to the events.

A representative of a local motorsports organization asked for an update on the status of the Redding Motorsports Park, which is the subject of a real property negotiation in closed session. Littau told him the city is "working hard" on the issue.

The council also discussed a proposal by Audette to create a one-time entertainment zone along Hilltop Drive for the Cool April Nights cruise event. The city attorney said the idea may require an ordinance amendment with two readings, and staff will research the legal requirements and bring options back to a future meeting.

Additionally, the council discussed establishing a citizen financial advisory committee. Members will submit their nominees by email, with the item tentatively scheduled for formal action at the March 17 meeting.

The council returned to closed session following the regular meeting. No reportable action was taken.

The next regular meeting is scheduled for March 3.

And that's the meeting review.