Redding City Council
November 15, 2022

2 We are committed to performing the required work, completing the audit, and issuing the necessary auditors’ reports.

We believe we are the best qualified to perform the audit because our audit staff includes individuals well versed in municipal auditing and reporting requirements. We have performed auditing and consulting engagements for numerous cities throughout California. We will be responsive to the needs of the City, we understand the City’s operational environment, and pledge to you our complete commitment to providing a quality product that meets the City’s requirements.

The approach to the audit has been designed to meet the audit requirements of the various authorities with the least disruption to the City’s office operations. The foundation of the audit approach is based on communication coupled with a strong knowledge of City operations and detailed planning at the initial stages of the audit. Open communication lines with all parties of the Engagement Team and City Management and staff throughout the engagement eliminate “surprises”. Initial planning and proper assignment of duties to experienced personnel provide for an effective and efficient audit process. Consequently, inefficiencies and disruptions are kept to a minimum. In addition, we perform almost half of the audit tasks during the interim phase to minimize any unforeseen delays during the year-end phase and to ensure a smooth and timely audit process.

The Firm maintains liability insurance coverage for professional liability, Workers’ Compensation, Comprehensive General Liability and Auto as part of our comprehensive insurance policy.

The Firm is an Equal Opportunity employer and complies with all Federal and State hiring requirements. The Firm also supports Affirmative Action philosophies and works hard to provide disadvantaged groups with opportunities for self enhancement.

We received Addendum No. 1 issued on July 11, 2022. This proposal is a firm and irrevocable offer for 180 days.

We are confident that you will find our organization offers the required expertise, technical knowledge, and business understanding to perform an audit of the City. Our past experience provides us with a thorough understanding of the needs and requirements of the City, as well as the technical knowledge to perform such services in accordance with the accounting and auditing guidelines as published by the various authoritative entities.

We welcome your inquiries and look forward to further discussions with you.

Sincerely,
Ahmed Badawi
Partner
Badawi & Associates
Certified Public Accountants
Packet Pg. 610 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

3 Independence
The Firm is independent of the City of Redding as defined by the GAO’s Standards for Audit of Governmental Organizations, Programs, Activities and Functions, and the AICPA and California State Society of Certified Public Accountants as promulgated in various auditing and professional standards.

Insurance
The Firm maintains professional liability insurance and other coverage as part of our comprehensive insurance policy. Upon selection as the City’s independent auditor, the Firm and our insurance provider will provide a certificate of insurance to the City which shows the minimum requirements identified by City have been met.

License to Practice in California
The Firm and all key professional staff assigned to the City’s audit are properly licensed to practice as Certified Public Accountants in the State of California and comply with GAO Government Auditing Standards.

The Firm is registered with the California State Board of Accountancy. Its State number is COR6823.

The Firm has met all required State and local laws, rules, and regulations.

Firm Qualifications
Badawi & Associates was founded by Mr. Ahmed Badawi. Mr. Badawi has over 20 years of experience working with state and local government with a special focus on cities. Prior to founding B&A, Mr. Badawi was a partner with several local and national firms, where he headed their government practice in Northern California. Mr. Badawi founded Badawi & Associates to serve the fast-paced needs of California's local governments. The goal is to build a proactive, client-focused culture from the ground up and to eliminate the entrenched bureaucratic culture and intrinsic limitations of the big audit firms.

Located in Berkeley, CA, the Firm serves a variety of cities and towns throughout California as well as conducting financial related services for numerous special districts and authorities.

Names and phone numbers of several of our current and past clients and other references are provided for your inquiries. We encourage you to contact these individuals to obtain information on the quality of the audit and the ability of the audit staff.

Our Berkeley office will be the Engagement Office assigned to the City.

In addition to specific City financial statements, the Firm members have also audited numerous redevelopment agencies, public financing authorities, hospitals, housing authorities, transportation authorities, special districts, water districts, OCJP grants, selfinsurance pools, joint power authorities and has also performed numerous compliance audits in accordance with the Single Audit Act, childcare regulations, TOT regulations, AQMD regulations, franchise requirements.

The Engagement Partner assigned to the City will be Mr. Ahmed Badawi. Mr. Badawi has over 20 years of government audit experience. He is a member of various governmental committees, has actively participated in the development of accounting and audit guidelines for the governmental sector, and is an instructor for the California Society of Municipal Finance Officers.

The professional staffs assigned to the Engagement are qualified and experienced. Each individual of the Engagement Team has several years of experience and has conducted or participated in numerous municipal audits of various sizes. Their understanding of governmental operations and the various authoritative guidelines will provide the where-withall to perform the audit in an efficient and effective manner with minimal disruption to the City’s finance department.

Firm
Qualifications
and
Experience
Packet Pg. 611 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

4 Technical Approach
The approach to the audit has been designed to meet the audit requirements of the various authorities with the least disruption to the City’s operations. The foundation of the audit approach is based on communication coupled with a strong knowledge of City operations and detailed planning at the initial stages of the audit. Open communication lines with all parties of the Engagement Team and City Management and staff throughout the engagement eliminate “surprises”. Initial planning and proper assignment of duties to experienced personnel provide for an effective and efficient audit process. Consequently, inefficiencies, disruptions, and lack of understanding are kept to a minimum.

The audit approach will consist of four phases:
1) Initial Planning Meeting:

The Engagement Partner and Manager will meet with City Management to discuss the audit approach, identify specific needs of City Management, and familiarize themselves with City policies and practices.
2) Interim:

The Engagement Team members including the Engagement Team Partner will perform the internal control reviews, test transactions, evaluate compliance with Single Audit Act requirements, identify potential audit issues that need to be addressed, perform limited confirmation procedures, and develop a clear understanding between the Engagement Team and City Management of the year-end audit responsibilities and assignments. In addition, we strive to complete many of the year-end audit tasks during the interim phase to ensure a smoother audit process. We will work with the City on providing a list of those tasks that we will target to complete during interim and work with the City on how to complete them to minimize the amount of effort and time needed at year-end which in turn will assist the City in meeting its goal of issuing the Annual Comprehensive Financial Report.
3) Year-end:

The Engagement Team members including the Engagement Team Partner will conduct validation procedures on general ledger account balances, complete confirmation procedures, perform analytical procedures on revenue and expenditures, perform search for unrecorded liabilities, complete compliance work on Federal Assistance, and wrap up audit field work.
4) Reporting:

Auditor’s reports for all City reporting entities and compliance requirements will be finalized along with Single Audit Reports and Management Letter comments. The Partner and Manager will be available to make presentations to the City Council and/or designated bodies.

Packet Pg. 612 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

5 Firm Experience
The Firm is located in Berkeley and provides a full range of accounting services to governmental agencies throughout California, including audit, tax and accounting. The Firm’s professional staff members provide the financial background and specific experience to meet the City’s operational needs. Additionally, this situation provides the City with an auditing firm that has depth in capabilities to address any financial issue the City may need assistance with, and the quality audit approach that you expect.

Our Berkeley office will be the Engagement Office assigned to the City.

Firm policy requires that the Engagement Partner, during the first year of the engagement, be actively involved in the daily fieldwork. This means to the City that Mr. Badawi will actually be on-site during the audit coordinating the audit process, supervising the audit staff, gaining a hands-on understanding of City processes, and benefiting the City with his broad municipal experience. We have found that this effort benefits the City and the Firm through developing a thorough knowledge of the City’s practices and issues and establishing a close working relationship with the City’s Management. Additionally, continuity of audit personnel is assured because of the hands on involvement of the Partner.

We are committed to providing appropriate and related experience, personal involvement, and a broad business perspective to produce a quality end product within the time frames required.

The Firm provides financial and compliance auditing services to governmental agencies throughout California. We are a governmental agency auditing firm and our professional staff members have been performing these services for many years. As a result, we have performed financial and compliance audits on most, if not all, types of governmental agencies and operations including:
 Cities
 Redevelopment
Agencies
 Financing
Authorities
 Housing Authorities
 Special Districts
 Water Districts
 Waste Management
Authorities and
Operations
 Pension Plans
 Child Care
Operations
 Joint Power
Authorities
 Investment Activities
 Landfills
 Enterprise Funds
 Airports
 Transportation
Operations
 Federal and State
Grants
Additional Activities
We offer a full range of accounting and finance services to the governmental sector. These services include:
 Financial audits
 Compliance audits
 Tax advice
 Development of financial and
accounting policies and procedures
 Investment review and compliance
evaluation
 Operational reviews
 Technical guidance on existing and
upcoming accounting issues
 Training seminars
 Pension/profit-sharing plans
 Performance audits
 Business consulting
Consequently, Firm personnel are well qualified to perform the services expected by the City.

Packet Pg. 613 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

6 Client Training Seminar
The Firm hosts an annual update on recent technical accounting and finance issues affecting the governmental area. This all day session reviews new and anticipated pronouncements from GASB, discusses future issues under consideration by GASB, reviews accounting treatment of various transactions where issues may arise, and provides a general overview of state and federal compliance issues. All of our clients are invited to attend, free of charge. The one day session qualifies for CPE under the rules of the State Board of Accountancy and is held in the Bay Area.

GASB 68 Firm Developed Tools and Assistance
The Firm has developed tools to assist our clients with preparation of GASB 68 journal entries for the CalPERS’ Cost Sharing Plans (for which individualized actuarial valuations are no longer prepared) and the CalPERS’ Agent Multiple Employer Plans. In addition to providing our clients with these tools and instructions on how to use them, we are available to answer any questions on how to prepare and complete the GASB 68 journal entries.

Flowcharting Documentation
As part of our risk assessment procedures, we prepare flowcharts for documenting our understanding of the City’s significant accounting and financial processes. Flowcharts are updated annually for any changes in the City’s processes and copies can be provided upon request for the City’s internal use. Flowcharted processes may include:
 Financial Reporting, Closing, and Manual Journal Entries  Cash Receipts, Billing, and Accounts Receivable/Revenues  Cash Disbursements, Purchasing, and Accounts Payable/Expenditures  Payroll and Human Resources
Quality Control Review
According to Government Auditing Standards, firms who perform audits under the Yellow Book are required to have a peer review once every three years. We received a report with a rating of pass with no deficiencies which we attached for your review.

Packet Pg. 614 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

7 Packet Pg. 615 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

8 Packet Pg. 616 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

9 The Firm has policies and procedures to ensure it hires only qualified people, that it properly supervises them and provides professional training, that it advances them to responsibilities they are capable of handling, and that it provides them with necessary technical resources. All members of the Firm are very familiar with the stringent quality control standards established by the AICPA.

The Firm is a member of the AICPA Government Audit Quality Center.

The Firm is a member of the AICPA Private Companies Practice Section.

Federal or State Desk Reviews
The Firm has had no negative federal or state reviews in the past three (3) years.

Disciplinary Action
There has not been any state or federal disciplinary actions taken or pending against the Firm nor any findings to report.

Litigations
The Firm has not experienced any lawsuits or legal actions that have been resolved or are currently pending in the prior five years.

Packet Pg. 617 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

10 The Engagement Team will normally consist of six individuals who provide a broad business perspective and significant experience in governmental auditing. This team will provide access to a wide range of technical capabilities which will provide the City with not only the technical support necessary to perform the audit, but also the broad business background to interpret findings and observations to offer effective solutions to issues, and the personal involvement of the Engagement and Compliance Partners of the Firm.

The Engagement Team will be led by Ahmed Badawi, CPA. Mr. Badawi’s background includes over twenty years of municipal auditing experience with a special focus on cities. He is the instructor of the CSMFO “Introduction to Governmental Accounting” training classes. Mr.

Badawi is a member of the Government Accounting and Auditing Committee of the California Society of Certified Public Accountants. He has participated in the audits of numerous City, county and special district governments, as well as non-profit entities. His diversified background offers the technical qualities required of the governmental and non-profit areas and the necessary wherewithal to properly evaluate the entire accounting process, develop opportunities to improve the accounting process, and to offer practical business recommendations.

The second member of the Engagement Team will be Mitesh Desai, CPA. Mr. Desai’s background includes fourteen years of experience in municipal auditing. Mr. Desai has participated in the audits of numerous governmental agencies, assisted in their efforts to publish their Annual Comprehensive Financial Reports in compliance with GASB 34, and a volunteer member of the GFOA Special Review Committee. Mr. Desai has also achieved the Advanced Single Audit Certificate offered by the AICPA. He will serve as the Audit Manager.

The third member of the Engagement Team will be Saleh Yassin, CPA. Mr. Yassin’s background includes ten years of accounting and auditing experience. He has participated in the audits of numerous governmental entities and assisted in their efforts to publish their financial statements in compliance with various regulations, and is a volunteer member of the GFOA Special Review Committee. Mr. Yassin will be the Audit Senior of this engagement.

Engagement Partner
Ahmed Badawi
CPA
Audit Manager
Mitesh Desai
CPA
Engagement Quality
Reviewer
Monica Singhai
CPA
Audit Senior
Saleh Yassin
CPA
Professional
Audit Staff
Professional
Audit Staff
Partner,
Supervisory,
and Staff
Qualifications
and
Experiences
Packet Pg. 618 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

11 The fourth member of the Engagement Team will be Monica Singhai, CPA. Mrs. Singhai’s background includes over seventeen years of experience in municipal auditing. She has participated in the audits of numerous governmental agencies and assisted in their efforts to publish their financial statements in compliance with various regulations. Mrs. Singhai will be the Engagement Quality Reviewer of this engagement.

Each member of the Engagement Team participates in continuing education programs offered by the AICPA and California State Society of Certified Public Accountants, and each has met the continuing education requirements for municipalities. In addition, the firm offers at least 60 hours of in-house CPE annually focused mainly on municipal audits.

Professional Development:

The Firm maintains a comprehensive training program targeted at appropriate professional staff levels. It utilizes in-house developed educational programs, AICPA and California CPA Foundation educational programs, and on-the-job training.

The Firm’s annual training schedule which officially begins in April for all professional staff and administrative staff includes comprehensive in-house training sessions on such topics as:
 Review of principles of accounting and financial reporting for state and local governments
 Review of governmental fund types and account groups
 Review of newly issued generally accepted auditing standards and GAO auditing standards
 Review of Internal Control evaluation approaches including COSO principles  Updates on recent governmental accounting and reporting guidelines  Review of Single Audit requirements and approaches
 Review of financial audit approaches
 Overview of audit and internal control work paper techniques  Review of GASB reporting requirements
 Review of current issues facing the governmental community During the year, professional staff members are sent to various educational sessions sponsored by the AICPA and California State Society of CPAs, as considered appropriate for the level and need of the individual. These classes include, among others:
 Governmental Financial Reporting Standards and Practices  Yellow Book: Government Auditing Standards
 Financial Accounting Standards: Comprehensive Review
 Single Audit
 Governmental Auditing & Accounting Update
 Governmental Accounting Principles
 Comprehensive Review of Generally Accepted Auditing Standards The result of the Firm’s training program is the production of a highly educated and competent municipal audit group capable of performing an efficient and effective audit for the City.

The Engagement Team members will continue their professional development efforts.

Packet Pg. 619 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

12 Staff Retention and Continuity:

The Firm's policy on providing service to our clients includes a commitment to maintaining continuity of audit personnel. We cannot guarantee that our staff will remain with the Firm.

However, to encourage our staff to remain with us, we pay competitive wage rates; offer promotional opportunities; provide state-of-the-art equipment and excellent working conditions; and offer various benefits, such as retirement plans, medical plans, profit sharing programs, educational benefits, and other such benefits. We can also guarantee that the partner will be involved in future years. Continuity of audit staff is of prime concern to us and because of the hands-on involvement of the partner; we can assure you that future years’ audits will be conducted in an efficient and effective manner with qualified and experienced professionals.

The Firm is an Equal Opportunity employer and complies with all Federal and State hiring requirements. The Firm also supports Affirmative Action philosophies and works hard to provide disadvantaged groups with opportunities for self enhancement.

Resumes of each member of the Engagement Team follow.

Packet Pg. 620 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

13 Ahmed Badawi, Certified Public Accountant – Engagement Partner Length of Career
 Twenty years experience in municipal auditing and accounting with a special focus on cities  Certified Public Accountant for the State of California Professional Experience
 Partial listing of clients served:
 Has performed numerous financial audits, Single Audits, Transportation Development Act audits, housing audits, electrical utility audits, RDA audits, PFA audits, and Trust Fund audits, and has prepared numerous Annual Comprehensive Financial Reports Education
 BS Degree in Accounting from the University of Alexandria, Egypt Professional Activities
 Instructor, CSMFO’s “Introduction to Governmental Accounting” training class  Member, CALCPA Government Accounting and Auditing Committee  Member, American Institute of Certified Public Accountants  Member, California Society of Certified Public Accountants  Member, Government Finance Officers Association
 Member, California Society of Municipal Finance Officers Continuing Education
 Has met the current CPE educational requirements to perform audits on governmental agencies Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Albany X X X X
Antioch X X X X X
Atwater X X X
Azusa X X X X
Berkeley X X X X X
Buena Park X X X X X
Burlingame X X X
Cotati X X X
Dublin X X X
East Palo Alto X X X X
El Cerrito X X X X X
Folsom X X X X
Foster City X X X X X
Fremont X X X X
Guadalupe X X X X X
Lafayette X X X X
Larkspur X X X X
Lindsay X X X
Menlo Park X X X X X
Newark X X X X
Oakdale X X X X X
Ontario X X X X
Petaluma X X
Pinole X X X X
Pleasanton X X X X
Richmond X X X X X X
San Bruno X X X X X
San Leandro X X X X
San Luis Obispo X X X
San Mateo X X X X X
Scotts Valley X X X X
Solvang X X
Susanville X X
Turlock X X X X X X
Union City X X X X X
Vacaville X X X X X
Walnut Creek X X X X X
Counties:

Santa Cruz County X X X X X X
Contra Costa County X X XXXX
Special Districts and Other:

Alameda County Water District X X X
East Bay Regional Park District X X X
Services Provided
Packet Pg. 621 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

14 Mitesh Desai, Certified Public Accountant – Professional Audit Manager Length of Career
 Fourteen years experience in municipal auditing with a special focus on cities  Certified Public Accountant for the State of California Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation Development Act audits, and housing audits
Education
 BS Degree in Business Economics with an emphasis in Accounting from University of California, Santa Barbara
Professional Activities
 Member, American Institute of Certified Public Accountants  Member, California Society of Certified Public Accountants  Volunteer Member, GFOA Special Review Committee
Continuing Education
 Various municipal accounting courses offered by the California Society of CPAs and local universities including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
 Has met the current CPE educational requirements to perform audits on governmental agencies Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Albany X
Antioch X X X
Azusa X X X X
Berkeley X X X X X
Buena Park X X X X
Calimesa X X X
Crescent City X X X X X
Dablin X X X
East Palo Alto X X X X
El Cerrito X X X X X
Foster City X X X X X
Fremont X X X X X
Lemon Grove X X
Lindsay X X X
Menlo Park X X X
Millbraie X X X X
Newark X X X X
Oakdale X X X X
Pittsburg X X X X X
Placerville X X X X
Rio Vista X X X X
San Mateo X X X X X
Sebastopul X X X X
Solvang X X
Susanville X
Turlock X XX
Union City X XX
Vacaville XXXX X
Waterford X X X X
Yountville X XX
Yuba City XX XX
Child Care Programs:

Menlo Park Child Care XX
Stanislaus County Childcare XX
Non-profits:

Housing Endowment and Regional Trust X
Special Districts and Other:

Castro Valley Sanitary District X
Cosumnes Community Services District X
Marin Municipal Water District X
West County Wastewater District XX
XX
Services Provided
Contra Costa Child Development Programs
Packet Pg. 622 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

15 Saleh Yassin, Certified Public Accountant – Professional Audit Senior Length of Career
 Ten years of experience in auditing
 Certified Public Accountant for the State of California Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation Development audits, and housing audits
Education
 BA Degree in Accounting from University of Asmara, Eritrea Professional Activities
 Member, American Institute of Certified Public Accountants  Member of the Association of Chartered Certified Accountants  Volunteer Member, GFOA Special Review Committee
Continuing Education
 Various municipal accounting courses offered by the California Society of CPAs and local universities including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
 Has met the current CPE educational requirements to perform audits on governmental agencies Financial SCO Single PFA Enterprise
Audit Report Audit Audit Fund Other
Cities:

Albany X X X
Antioch X X X
Azusa X X X
Berkeley X X X
East Palo Alto X X
El Cerrito X
Larkspur X X X
Newark X X X
Oakdale X X X
Petaluma X X X X
Pinole X X X
Richmond X X X X X
San Luis Obispo X X
San Mateo X X
Sebastopol X X X
Solvang X X
Vacaville X X X X X
Yountville X X
Yuba City X X X
Special Districts:

Central County Fire District X
Hayward Area Recreation and Park District X X X
Regional Government Services Authority X
San Mateo Mosquito District X X
Sutter Animal Services Authority X
Sutter Butte Flood Control Agency X
Zayante Fire Protection District X
Non-profits:

Housing Endowment and Regional Trust X
Newark Betterment Corporation X
Services Provided
Packet Pg. 623 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

16 Monica Singhai, Certified Public Accountant – Engagement Quality Reviewer Length of Career
 Seventeen years of experience in auditing with special focus on municipalities.  Certified Public Accountant for the State of California.

Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits and PFA audits Education
 Bachelor of Science in Accounting from Jabalpur University, India.

Professional Activities
 Member, California Society of Certified Public Accountants.  Member, Institute of Chartered Accountants of India.

Continuing Education
 Various local governments and not for profit accounting courses offered by the California Society of CPAs and AICPA including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Single Audit
 Has met the current CPE educational requirements to perform audits on governmental agencies.

Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Berkeley XX X
East Palo Alto XX
Menlo Park XX X
Redwood City XX X
Special District:

Alameda County Fire District X
Alameda County Law Library X
Burbank Sanitary District XX
Lions Gate Community Service District X
Los Medanos Community Health Care District X
Oakland-Alameda County Coliseum Authority X
School District:

Bayshore Elementary School District X
Belmont-Redwood Shores School District XX X
Brisbane School District X
Jefferson Elementary School District XX
La Honda-Pescadero Unified School District XX X
Pacifica School District XX
Ravenswood City School District XX X
Redwood City School District XX
San Mateo-Foster City School District XX X
Charter schools:

Oakland Military Institute College Preparatory
Academy XX
Sacramento Valley Charter School X
West Sacramento College Prep Charter School X
First 5:

First 5 Alameda County XX
First 5 Inyo County X
First 5 Marin County X
First 5 Monterey County X
First 5 Santa Cruz County X
Others:

Alameda County Housing Community
Development Agency X X X
Alameda County Redevelopment Agency X X
Alameda County Successor Agency X
City of Oakland - Measure C X
City of Oakland - Measure Y X
City of Oakland - Child Care and
Development Program X
City of Oakland - Wildfire Prevention
Assessment District X
Services Provided
Packet Pg. 624 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

17 The tables below and on the following page are a partial listing of our clients similar to the City, and illustrates the many different types of components involved in each audit engagement that present very difficult and complex auditing and accounting challenges (in order of audit hours). ** Indicates cities with population over 50,000
** Indicates cities with governmental revenues over $100 million and population over 50,000

City
Client Since
Hours
Engagement Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
Child Care Audit
Housing Authority
Enterprise Funds
Pension Trust Fund
** Richmond 2020 3,160 Ahmed
Badaw i
Ms. Delmy Cuellar
Finance Manager
(510)620-6790
[email protected]

X XXX X XXX
** Berkeley 2008 1,850 Mitesh
Desai
Mr. Henry Oyekanmi
Finance Director
(510)981-7300
[email protected]

X XXXX X XX
* Union City 2006 850 Mitesh
Desai
Ms. Jackie Acosta
Finance Director
(510)675-5345
[email protected]

X XXXX X
** Folsom 2019 807 Ahmed
Badaw i
Ms. Stacey Tamagni
Finance Director
(916)461-6712
[email protected]

X X X XX X
* Petaluma 2019 691 Ahmed
Badaw i
Ms. Corey Garberolio
Finance Director
(707)778-4357
[email protected]

X X XXXXX
* San Luis
Obispo 2019 638 Ahmed
Badaw i
Ms. Brigitte Elke
Finance Director
(805)781-7125
[email protected]

X X XXXX
* Antioch 2005 586 Mitesh
Desai
Ms. Daw n Merchant
Finance Director
(925)779-6135
[email protected]

X XXXXXX X
Lafayette 2020 586 Ahmed
Badaw i
Ms. Tracy Robinson
Administrative Services Director
(925)299-3227
[email protected]
X XX X
East Palo Alto 2014 560 Mitesh
Desai
Mr. Tomohito Oku
Finance Director
(650)853-3122
[email protected]

X XXX X X
El Cerrito 2018 547 Ahmed
Badaw i
Ms. Lucy Xie
Senior Accountant
(510)215-4310
[email protected]

X XXXX XX
** Dublin 2018 546 Ahmed
Badaw i
Ms. Lisa Hisatomi
Director of Finance & Admin. Services
(925)833-6640
[email protected]
X X XX
Similar
Engagements
with Other
Governmental
Entities
Packet Pg. 625 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

18 City
Client Since
Hours
Engagement Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
Child Care Audit
Housing Authority
Enterprise Funds
Pension Trust Fund
Azusa 2017 540 Ahmed
Badaw i
Ms. Talika Johnson
Administrative Services Director
(626)812-5202
[email protected]

X XXX XX X
Millbrae 2015 524 Ahmed
Badaw i
Mr. Mike Sung
Finance Director
(650)259-2433
[email protected]

X XXX XX X
* Yuba City 2017 450 Ahmed
Badaw i
Mr. Spencer Morrison
Finance Director
(530)822-4615
[email protected]

X XXX XX X
Wasco 2021 428 Ahmed
Badaw i
Mr. Isarel Perez-Hernandez
Finance Director
(661)758-7230
isperez@cityofw asco.org
XXXXX
Pinole 2018 419 Ahmed
Badaw i
Ms. Markisha Guillory
Finance Director
(510)724-9823
[email protected]

X XX X X
Larkspur 2019 382 Ahmed
Badaw i
Ms. Cathy Orme
Administrative Services Director
(415) 927-5019
[email protected]
X XX
Atw ater 2021 380 Ahmed
Badaw i
Ms. Kellie Jacobs-Hunter
Finance Director
(209)357-6347
kjacobshunter@atw ater.org

XX XX X
Lindsay 2017 366 Ahmed
Badaw i
Ms. Juana Espinoza
Finance Director
(559)562-7102 ext. 8025
[email protected]
XX X
Waterford 2018 311 Ahmed
Badaw i
Mrs. Tina Envia
Finance Manager
(209)874-2328 Ext: 104
tenvia@cityofw aterford.org
X XX X
Solvang 2019 308 Ahmed
Badaw i
Ms. Xenia Bradford
City Manager
(805)688-5575
[email protected]
X X XX
Oakdale 2016 306 Ahmed
Badaw i
Mr. Albert Avila
Finance Director
(209)845-3584
[email protected]

XXXXX X
Guadalupe 2017 303 Ahmed
Badaw i
Ms. Lorena Zarate
Finance Director
(805)356-3895
[email protected]

XX XX X
Packet Pg. 626 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

19 City Client Since Hours Engagement Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
Child Care Audit
Housing Authority
Enterprise Funds
Pension Trust Fund
Sebastopol 2017 275 Mitesh
Desai
Mrs. Ana Kw ong
Finance Director
(707)824-4879
akw [email protected]

X XX XX X
Cotati 2020 265 Ahmed
Badaw i
Ms. Angela Courter
Director of Administrative Services
707-665-4236
[email protected]

X X XX X
Crescent City 2014 227 Mitesh
Desai
Ms. Linda Leaver
Finance Director
(707)464-7483 x224
[email protected]

XX XX XX
Scotts Valley 2019 202 Ahmed
Badaw i
Ms. Casey Estorga
Administrative Services Director
(831) 440-5615
[email protected]
X XX X
Calimesa 2013 193 Mitesh
Desai
Ms. Bonnie Johnson
City Manager
(909)795-9801 ext 231
[email protected]
X
Packet Pg. 627 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

20 The table below lists all special district engagements (in order of audit hours):

Special District
Client Since
Hours
Engagement
Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
Single Audit
Enterprise Funds
San Gabriel Valley Council of Governments 2021 618 Ahmed Badawi
Mr. Rey Alimoren,
Director of Finance
(626) 962-9292
[email protected]
No N/A X
County of Contra Costa Community
Services Bureau Child Development
Program
2013 450 Mitesh
Desai
Ms. Nancy Benavides
Fiscal Officer
(925)681-4268
[email protected]
No N/A
Florin Resource Conservation District/
Elk Grove Water District 2015 350 Mitesh Desai
Mr. Patrick Lee
Finance Manager / Treasurer
(916)685-3556
[email protected]
Yes Yes X
Hayward Area Recreation
and Park District 2017 350 Ahmed Badawi
Ms. Anne Maze
Interim Finance Manager
(925)451-5318
[email protected]
No N/A
Amador County
Transportation Commission 2019 260 Ahmed Badawi
Mr. John Gedney
Executive Director
(209)267-2282
[email protected]
No N/A
Solano County Water Agency 2020 243 Ahmed
Badawi
Mr. Roland Sanford
General Manager
(707) 455-1103
[email protected]
No N/A
San Mateo Mosquito and
Vector Control District 2018 228 Ahmed Badawi
Mr. Richard Arrow
Finance Director
(650)344-8592
[email protected]
Yes Yes
Monterey Bay Unified Air
Pollution Control District 2016 200 Mitesh Desai
Ms. Rosa Rosales
Administrative Services Manager
(831)718-8019
[email protected]
No N/A
Southern Marin Fire
Protection District 2020 160 Ahmed Badawi
Ms. Alyssa Schiffmann
Finance Manager
(415)388-8182
[email protected]
No N/A
Alameda County Waste Management
Authority (StopWaste) 2018 154 Ahmed Badawi
Mrs. Jennifer Luong
Finance Services Manager
(510)891-6500
[email protected]
No N/A
Aptos La Selva
Fire District 2016 150 Mitesh Desai
Ms. Nancy Dannhauser
Finance Director
(831)685-6690
[email protected]
No N/A
Central County
Fire Department 2012 150 Mitesh
Desai
Ms. Jan Cooke
Finance Director
(650)375-7408
[email protected]
Yes Yes
Zayante Fire
Protection District 2017 150 Mitesh Desai
Mr. John Stipes
Fire Chief
(831) 335-5100
[email protected]
No N/A
Santa Cruz
Regional 9 - 1 - 1 2016 150 Mitesh Desai
Mr. Dennis Kidd
General Manager
(831)471-1038
[email protected]
No N/A
Resource Conservation
District of Santa Cruz
County
2017 150 Mitesh
Desai
Ms. Sharon Corkrean
Director of Finance
[email protected]
No N/A X
Port of San Luis
Harbor District 2017 150 Ahmed Badawi
Ms. Kristen Stout
Business Manager
(805)595-5413
[email protected]
Yes Yes X
Central Fire Protection District of
Santa Cruz County 2018 150 Mitesh Desai
Mrs. Nancy Dannhauser
Finance Director
(831)479-6842
[email protected]
No N/A
Packet Pg. 628 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

21 The City desires an audit of the financial records for the City and an expression of an opinion in accordance with generally accepted accounting principles on the fairness of presentation of financial statements for the fiscal years ending June 30, 2023 through 2026, with the option of extending the contract for each of the two (2) subsequent two (2) fiscal years.

The Firm will:
 Express an opinion on the fair presentation of its basic financial statements which includes but is not limited to the financial statements of governmental activities, the business-type activities, each major fund and all aggregate remaining fund information in conformity with generally accepted accounting principles in the United States of America.
 Express an "in-relation-to" opinion on the fair presentation of its combining and individual non-major and fiduciary fund financial statements and schedules in conformity with generally accepted accounting principles. The Firm will provide an “in-relation-to” report on the supporting schedules contained in the Annual Comprehensive Financial Report based on the auditing procedures applied during the audit of the basic financial statements and schedules.
 Provide an “in-relation-to” report on the schedule of expenditures of federal awards based on the auditing procedures applied during the audit of the financial statements.  Perform the audit in accordance with generally accepted auditing standards accepted in the United States of America, applicable to the financial audit contained in the Government Auditing Standards issued by the Comptroller General of the United States and the provisions of the Uniform Guidance, Audits of States, Local Governments and Non-Profit Organizations.
 Perform limited procedures on supplementary information required by the Government Accounting Standards Board.
 Issue the following reports, following the completion of the audit of the fiscal year’s financial statements:
 Independent Auditor’s Report on Financial Statements and Schedule of Expenditure of Federal Awards
 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
 Independent Auditor’s Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with the Uniform Guidance
 Schedule of Findings and Questioned Costs
 Auditor’s Communication with Those Charged with Governance  Annual Comprehensive Financial Report following the requirements and guidelines of the GFOA award program
 GANN Limit Agreed-upon Procedures
 Redding Area Bus Authority Audit
 Redding Housing Authority Audit
 Passenger Facility Charge Compliance Audit
 Provide special assistance to the City as needed.
 Retain all working papers and reports at the audit firm’s expense for a minimum of 7 years. In addition, make working papers available to the City and/or any government agency as appropriate.

Should any conditions be discovered requiring corrective action, the Firm will provide a detailed description of the findings and recommended actions as to their resolution.

Understanding
of Services to be
Provided
Packet Pg. 629 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

22 The Firm will submit a report to the City’s Council and management detailing auditor’s responsibility under generally accepted auditing standards, significant accounting policies, management judgments and accounting statements, significant audit adjustments, other information in documents containing audited financial statements, disagreements with management, management consultations with other accountants, major issues discussed with management prior to retention, difficulties encountered during the audit, and any significant deficiencies or material weaknesses found during the audit. Non-material instances of noncompliance will be reported in a separate management letter, if appropriate, along with any other observations or recommendations determined to be informative to City Management.

The Firm will be available to provide advice and counsel regarding significant matters during the year.

The Firm’s Partner and Staff welcome the opportunity to make presentations to the City Council and will be ready to respond to questions from the Council and citizens of the City.

Objectives of Our Services
The basic objective of our audit of the City is to conduct an examination of the financial statements in accordance with generally accepted auditing standards and to express our opinion on the fairness of presentation of such financial statements in conformity with generally accepted accounting principles.

Additionally, we believe that another real value of our audit lies in meeting other objectives at no additional cost. The following are other objectives of our services that have important benefits to the City:
 To offer substantive observations and recommendations relating to accounting and operating control policies and procedures.
 To identify opportunities for operating efficiencies and isolate candidate activities for cost reduction opportunities.
 To perform a professional audit in an efficient and effective way to minimize disruption to the office operations.
 To offer ongoing advisory services to assist in the running of the operation and implementation of improved operating procedures.

The engagement will be conducted within the framework of the Firm's quality control program which includes the use of audit programs, careful planning, use of computerized audit software and internal control evaluation and documentation software, and objective review procedures.

On-site staff will use Firm supplied portable computers and printers.

Audit Approach
The specific audit approach has been designed to efficiently and effectively address the audit requirements of the City, to perform the audit of the City’s financial records in a timely manner with minimal disruptions to office operations, and to meet the City’s timeline.

The audit will be conducted in accordance with:
1) Generally accepted auditing standards established by the AICPA. 2) The standards contained in Government Auditing Standards issued by the GAO. 3) Provisions of the Single Audit Act and the Uniform Guidance. 4) Requirements issued by the California State Controller’s office. 5) Other requirements as required.

Specific Audit
Approach
Packet Pg. 630 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

23 We will conduct the necessary audit steps to perform:
 Planning of the engagement
 Evaluation of the existing internal control environment to determine degree of risk of material misstatement
 Determination of degree of compliance with laws, regulations, grant provisions, and City approved policies
 Assessment of potential fraudulent issues
 Validation of account balances
 Verification of reasonableness of management estimates Technical Approach
We use an industry specific audit approach tailored to governmental entities. Our governmental audit approach addresses the special risks and circumstances of local governments. As a result, the audit is conducted efficiently and effectively with minimal disruption to your staff.

The core of our governmental technical audit approach can be summarized as follows:

1. Planning, Understanding and Communication:

Based on our previous audit experience, using the budget, organizational charts, manuals and other financial information systems and our knowledge of how governments work, we will obtain an insight to the specific concerns and sensitivities of the City. Our understanding is updated continuously through our year-round contact and communication efforts. We will agree on common audit objectives and expectations with management before audit work begins and, throughout the audit, will meet regularly with management to discuss audit issues and to gather feedback.

2. In-Depth Review of Systems and Controls:

We have developed diagnostic reviews which enable us to evaluate your systems and controls, and to provide management with constructive feedback. Combined with our knowledge of the City and understanding and experience with the City’s accounting software, our control review will form the basis of our audit risk assessment. We will utilize the COSO approach in our evaluation of the City’s internal processes to identify potential control deficiencies. In future years, we will update our understanding through similar procedures.

3. Risk-Based Customized Testing Program:

Our audit approach is tailored to governmental applications. We will use audit programs specifically designed to address the operational environment of governmental entities. Our approach will identify potential control risks and the opportunities for risk of material misstatements and fraud. We will evaluate the various risk assessments and identify the potential risks relating to the:
 Balance Sheets / Statement of Net Position
 Statement of Revenues and Expenditures / Statement of Activities  Presentation
 Disclosure
Our audit procedures will then be developed to address these risk areas.

4. Expanded Interim Fieldwork:

Timeliness and audit efficiency is enhanced by performing extensive interim work.

Partners, managers and senior staff work with City staff to identify and resolve potential audit issues early. Accordingly, the amount of audit work to perform at year end is minimized. Because our audit staff is familiar with the operations before year-end fieldwork begins, disruption of accounting staff is minimized.

Packet Pg. 631 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

24 5. Smooth Transition:

Our testing program focuses on audit risks identified by our understanding of the City’s operations. We will work with the accounting staff to identify the most effective ways to address our objectives. Communication between the members of the audit engagement team and City staff will be fluid and continuous.

6. Sample Size and Sampling Techniques:

Our audit approach will include sampling activities. Population size and the level of assurance to be derived from a particular test will dictate the sample size. We use sampling in our audit approach to compliment skilled judgment and knowledge of the particular situation. Our sample size will range normally from 25 to 60 items.

7. Automated Systems:

We will evaluate controls over the IT functions to assess control risk. We intend to test controls for purposes of reliance. Our review procedures will evaluate controls over:
 Security Management
 Logical and Physical Access
 Configuration Management
 Segregation of Duties
 Contingency Planning
In addition, we will review controls over:
 Input, processing, output, master data
 Application interface
 Data management system interface

8. Analytical Procedures:

We use analytical procedures in several aspects of our audit. Extensive knowledge and industry background are required for effective analytics, and our staff possesses the appropriate experience and knowledge for the City to benefit from these procedures.

9. Approach to be Taken in Determining Laws and Regulations Subject to Audit Test Work:

We continuously refer to specific regulations, compliance supplements, state guidelines and contracts currently in force. We perform the procedures required related to laws and regulations, using inquiries, observations and sampling techniques. Some of the laws and regulations that we believe may be applicable to the City are the requirements of the California Public Utilities Commission, Single Audit Act and other applicable laws and regulations, including the California Government Code, provisions of applicable Grant guidelines, California Constitution GANN Limit requirements, requirements of local measures, Child Care Program compliance requirements, etc.

10. Report Format:

We will meet with City Management to review report formats. Any report format changes will be made in conjunction with approval from City Management.

11. Work Plans:

The detailed work plans will be designed to efficiently and effectively address the audit requirements of the City in accordance with generally accepted auditing standards, to perform the audit of the City’s financial records in a timely manner with minimal disruptions to office operations, and to meet the City’s timeline.

Packet Pg. 632 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

25 12. Adjusting Journal Entries:

We will discuss and explain proposed audit adjusting entries with the City’s designated Finance Department personnel prior to recording. Audit adjusting entries will be provided in a format showing the lowest level of posting detail needed for data entry on the City’s general ledger system.

13. Listing of Schedules and Tables (anticipated to be prepared by the City):

Based on preliminary inquiries made with management and City staff and review of documents, we will tailor a list of schedules, tables, and other reconciliations required for the audit. We will take into account as much as possible reconciliations already prepared by the City for day to day operations and reporting, as well as any reports that are system generated to limit the need for additional City staff hours.

The following is a listing of some of the significant reconciliations and schedules that we would normally expect the City to provide to us in assisting us in conducting our fieldwork.  Trial Balance
 Annual Comprehensive Financial
Report Account Roll Up
Schedules
 Budget to Actual Reports
 Bank Reconciliations
 Listing of manually prepared
journal entries posted
 Summary of Investments held by
the City
 Capital Asset Schedules
 Long Term Debt Schedules
 Debt amortization schedules &
Calculations of deferred amounts
 Calculations of any debt
covenants amounts or
percentages
 Schedule of Leases
 Schedule of Expenditures of
Federal Awards
 Analysis of Deferred Inflows of
Resources and Deferred
Outflows of Resources
 Reconciliation of Receivables to
subsidiary ledgers
 Calculations for estimate of
allowance for uncollectible
accounts
 Loans Receivable Schedules
 Reconciliation of Significant
Revenue Accounts
 Utility billing Registers and Fee
schedules
 Compensated Absences
Schedules and Copies of Related
Policies
 Claims Payable Schedules
 Pension and OPEB Roll Forward &
Supporting Schedules
 GASB 54 Fund Balance Roll
Forward Schedule
 Interfund Transaction Schedules
Packet Pg. 633 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

26 The Firm maintains a variety of specialized software packages during the audit that enable us to perform an efficient, thorough, and timely audit and keeping time demands on City staff to a minimum.

Trial Balance Management and Financial Statement Preparation ProSystem Fx Engagement allows us to import and manage multiple years of trial balance data including budgetary information, create multiple account groupings, generate reports, post journal entries proposed during the audit (including GASB 34 conversion entries), and link information directly to the financial statements. This gives us the ability to:
 Generate immediate trend and other comparative analysis of trial balance and budget data prior to the start of the audit. This allows us to identify potential issues and make inquiries early in the audit
 Link the financial statements and footnotes prior to the start of the audit allowing us to have majority of the financial statements (including budgetary comparison schedules and other supplementary information) prepared at the time the trial balance is uploaded
 Audit adjustments or City adjustments provided during the audit are automatically reflected in the financial statements
Audit Request Management and Document Exchange
CCH Engagement Organizer (“Organizer”) is a virtual “Prepared by Client (PBC) List” that streamlines the process of requesting, receiving, and keeping track of documents. The Organizer is an integrated cloud-based request list that helps to facilitate the engagement through more seamless collaboration between the Firm and our clients. By utilizing the Organizer, the City can do all of the following in one secure virtual environment:
 Attach files of any type to document requests
 Easily track the status of document requests that are either pending, completed by the City, accepted by us, or rejected by us
 Access templates and documents from us that require completion  Have multiple City staff get involved and assist in the audit process  Participate in a dialog with us for questions and notes Especially with having to perform a large part of the audit remotely in 2020, and anticipated for the upcoming year, we have found that the use of the Organizer has helped our clients be always informed as to the status of their audit, and not be surprised with new requests or follow up on outstanding requests previously provided.

Computer Aided Audit Tools (CAATs)
The Firm’s data analytics software enables our Engagement Team to perform more than 150 Computer Aided Audit Tools (or “CAATs”). CCH Teammate Analytics gives us the ability to perform advanced data analysis and increase efficiency. By utilizing this software, we can:
 Immediately visualize and analyze 100% of account populations with graphs, charts and statistics to identify anomalies
 Make fewer sample selections that are targeted to problematic areas  Quickly analyze transactional data for:
o Duplicate records
o Missing transactions
o Transaction sequence
o Unusual items
 Compare excel worksheets for changes or differences
 Generate immediate testing samples
 Perform regression analysis
 Filter and extract data from City reports
Use of
Technology in
the Audit
Packet Pg. 634 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

27 Audit Planning, Risk Assessment, and Audit Programs
Our firm utilizes CCH Knowledge Coach, which is an expert system that adapts and customizes our audit approach specifically based on the City’s structure, operating environment, specific transactions, and identified risks or matters to be addressed in the audit.

The software is frequently updated for new industry trends and audit requirements. Included in the software is a continuous diagnosis of audit forms that identifies missing information, procedures, or any conflicts that need to be addressed prior to issuance of the audit report.

We have found that this audit tool greatly benefits our audit clients in the following ways:
 Removal of standardized audit steps and procedures that do not add value to the audit  Targeted audit procedures focusing on risks and accounts specific to the City’s operations
 Audit is always performed in accordance with audit standards especially the risk assessment standards
 Maximizing audit efficiency having less City staff time dedicated to gathering information or responding to inquiries by focusing on material issues  Automatic self-diagnostics ensure no audit steps are missed, guaranteeing a quality audit
Research Tools
We maintain multiple research software packages that are always kept up to date to ensure compliance with accounting and auditing standards, and are also a resources for us to provide guidance to our clients. In addition to accounting and audit literature, we have access to interactive disclosure checklists that include sample footnote disclosures and financial statements.

Packet Pg. 635 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

28 2023
Period Audit Tasks
May - Planning and Administration
 Review and obtain copies of key work papers of prior audit firm.  The entrance conference shall be held with City staff. The purpose of this meeting will be to discuss prior audits and the interim work to be performed. This meeting will also be used to establish overall liaison for the audits and to make arrangements for work space and other needs
 Review and evaluate the City's accounting and financial reporting.

Prepare an overall memo of recommendations, potential issues, and suggestions for improvements
 Prepare overall memo to the City confirming audit procedures, timing, and assistance
 Prepare detailed audit work plan and audit programs, audit budget and staffing schedule, and list of schedules to be prepared by the City staff
 Send the Organizer to the City that will include all request items considered to be necessary for the audit
May - June - Internal Control Evaluation
 Meeting with City Manager and Department Heads of other departments with large operating budgets or which have significant federal grant expenditures
 Attending City Council meetings
 Meeting with off-site locations
 Meeting with key Finance Department personnel
 Obtain and document understanding of key internal control systems through walk-throughs, interviews of staff, and review of supporting documentation
o General ledger system
o Budgeting system
o Revenue, utility billing, accounts receivable, and cash collections
o Purchasing, expenditures, accounts payable, and cash
disbursements
o Payroll
o Federal Financial Assistance
o Other systems
 Identify control risks
 Evaluate IT control environment
 Perform testing of the internal control system and evaluate the effectiveness of the City’s systems. Select large dollar and random samples of transactions in key operating systems. Sample size to meet required level for determined degree of risk. Review supporting documentation of selected transactions, evaluate adequacy of support and approvals, and conclude on degree of adherence to accuracy and compliance with City policies  Conduct fraud assessment procedures
 Assess degree of risk for material misstatement
 Provide to the City’s management a memo concerning
management letter points and identify issues, if any
Audit
Schedule
Packet Pg. 636 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

29 2023
Period Audit Tasks
May - June - Other Tasks
 Review minutes of City Council meetings and other key committees  Perform preliminary substantive procedures, which would include tests of:
o Vendor and contractor payments
o Payroll expense
o Utility billing
o Pension and OPEB testing
o Capital asset acquisitions
o Journal entries
o Retrospective review of accounting estimates
 Financial statement database management and other setup, in addition to drafting of all necessary report templates
 Preliminary Single Audit and other compliance testing  Coordinate with City staff and prepare of all appropriate confirmation requests including:
o Bank accounts
o Investment pool accounts
o Accounts receivable
o Federal grants
o Revenue from governmental agencies
o Bond and other debts
o Pension plan
o Attorney letters
o Others, as required
 Update the Organizer with any additional requests that will be needed for the City's audit
 Provide the City with audit plan and list of year-end audit schedules  Hold progress conference with City Management
 Hold exit conference with City Management
October - Final Fieldwork
 Entrance conference with City Management
 Follow-up on all outstanding confirmations
 Verify and validate account balances by reviewing supporting documentation including invoices, vouchers, council resolutions, minutes, and other documents, as required
 Perform analytical review of revenue and expenditures. Determine reason for material differences between budget and actual  Perform a search for unrecorded liabilities by reviewing disbursements subsequent to June 30, testing terms of contractual obligations, and interviewing City staff
 Perform review of subsequent events by discussions with City Management and update all minutes of City Council and key committees
Packet Pg. 637 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

30 2023
Period Audit Tasks
- Single Audit Compliance
 Entrance conference with City Management
 Obtain Federal Financial Assistance Schedule
 Determine grants to be considered as major programs including clusters
 Perform audit tests of major grant programs and compliance with Federal Law and Regulations
 Review grant documents, select sufficient number of transactions to test for compliance of Federal Requirements
 Coordinate Single Audit efforts with the Financial Audit efforts  Communicate findings to City Management
 Other Compliance
November - Audit Reports
 Review drafts of City’s Annual Comprehensive Financial Report  Prepare draft of Single Audit Reports concerning internal control structure, compliance with laws and regulations, and administering of federal financial assistance programs
 Prepare other reports as required
 Provide revised final drafts of all required reports to the City for approval no later than November 20th
 Final City Audit Reports, Financial Statements, Single Audit Reports, and other reports delivered no later than November 30th December - Single Audit Report package submitted to Federal Audit Clearinghouse
January 2024 - Audit Presentation to Audit Committee
Estimated Hours by Audit Phase
Position Planning
Interim
Fieldwork
Year End
Fieldwork Reporting Total
Partner 13 34 23 6 76
Audit Manager 11 53 58 9 131
Audit Senior 25 89 95 12 221
Professional Audit Staff - 143 131 17 291
Administrative Assistant 9 14 - 14 37
Total 58 333 307 58 756
Packet Pg. 638 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

31 Identification of Anticipated Potential Audit Problems We do not anticipate that there will be any audit problems at the City. However, the following are some areas that we will carefully investigate and monitor during our audit procedures:
 Financial Reporting:
 Review and evaluate that the City’s Annual Comprehensive Financial Report are in compliance with current reporting and disclosures requirements issued by the GASB and GFOA.
 Review Annual Comprehensive Financial Report for financial reporting conformance awards issued by CSMFO and GFOA.
 Review and evaluate degree of compliance with the various GASBs in effect.  Review degree of compliance with infrastructure obligations and regulatory provisions.
 Internal Control Structure:
 Review and evaluate the City’s internal control functions and ascertain compliance with proper internal control philosophies.
 Review computer system processes and controls and evaluate adequacy of the control environment.

Several new GASB pronouncements will become effective over the time period of this proposal. As such, specific attention will be provided to determine the proper implementation of these new pronouncements. A list of known new pronouncements with implementation dates that fall within this proposal period are as follows:
2023
 Statement 91 – Conduit Debt
 Statement 94 – Public-private Partnerships
 Statement 96 – Subscription-Based Information Technology Arrangements 2024
 Statement 100 – Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62
2025
 Statement 101 – Compensated Absences
A client relationship with the City will be of great value to our Firm and we welcome the opportunity to develop a long-term relationship with the City. We are committed to:
 Rendering the highest standard of service
 Developing a long-term working relationship dedicated to meeting the needs of the City  Assisting the City in operational issues
 Producing a quality end-product
We have the technical qualifications and experience to provide the level of service desired and expected by the City and stand ready to provide our knowledge and experience for the benefit of your organization.

We would like to express our appreciation to the City and to its Staff for allowing us the opportunity to submit a proposal to perform professional auditing services. We are available, at your convenience, to discuss any aspects of our proposal.

Thank you for allowing us to present our Firm to you.
* * * * * * * * * * * * * * * * *

Discussion of
Relevant
Accounting
Issues
Conclusion
Packet Pg. 639 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

32 References
1) City of Berkeley
 Scope of Work: Annual Comprehensive Financial Report, Gann Limit, SAS114, Measure B (Alameda County), Vehicle Registration Fee Audit (Alameda County), Due Diligence Reviews for the RDA Successor Agency
 Engagement Partner: Ahmed Badawi (2008 – 2019), Mitesh Desai (2020- Present)  Address: 2180 Milvia Street, Berkeley, CA 94704
 Principal Contact:

Mr. Henry Oyekanmi
Finance Director
(510)981-7332
[email protected]
2) City of Antioch
 Scope of Work: Annual Comprehensive Financial Report, SAS 114, GANN Limit, Single Audit, Antioch Public Financing Authority, Antioch Area Public Facilities Financing Agency  Engagement Partner: Ahmed Badawi (2005 – 2019), Mitesh Desai (2020- Present)  Address: 200 H Street, Antioch, CA 94509
 Principal Contact:

Ms. Dawn Merchant
Finance Director
(925)779-6135
[email protected]
3) City of San Luis Obispo
 Scope of Work: Annual Comprehensive Financial Report, Single Audit, Gann Limit, SAS114, Whale Rock Commission
 Engagement Partner: Ahmed Badawi (2019 – Present)
 Address: 990 Palm Street, San Luis Obispo, CA 93401
 Principal Contact:

Ms. Brigitte Elke
Finance Director
(805)781-7125
[email protected]
4) City of Petaluma
 Scope of Work: Annual Comprehensive Financial Report, Transportation Development Act Fund, SAS 114
 Engagement Partner: Ahmed Badawi (2019 – Present)
 Address: 11 English St, Petaluma, CA 94952
 Principal Contact:

Ms. Corey Garberolio
Finance Director
(707)778-4357
[email protected]
5) City of Crescent City
 Scope of Work: Annual Financial Report, SAS 114, GANN Limit, Single Audit, Housing Authority
 Engagement Partner: Ahmed Badawi (2014 – 2019), Mitesh Desai (2020)  Address: 377 J Street. Crescent City, CA 95531
 Principal Contact:

Ms. Linda Leaver
Finance Director
(707)464-7483 x224
[email protected]

Appendix A
Packet Pg. 640 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

33 Exceptions to the Contract
With regard to the Consulting and Professional Services Contract, we would like the following items to be edited:

RFP, Consulting and Professional Services Contract, Section 3. Term and Termination, paragraph E, we would like to edit the paragraph as follows:

E. Unless such property is proprietary in nature, in the event that City gives notice of termination, Consultant shall promptly provide to City any and all finished and unfinished reports, data, studies, photographs, charts or other work product prepared by Consultant pursuant to this Contract. City shall have full ownership, including, but not limited to, intellectual property rights, and control of all such finished and unfinished reports, data, studies, photographs, charts or other work product.

RFP Forms

1. Acknowledgement of Receipt and Certification of Compliance with Federal Contract Clauses

2. Certification Regarding Lobbying

3. Government-Wide Debarment and Suspension

4. Disadvantaged Business Enterprise Information Form

5. Disclosure of Conflicts of Interest

6. Notification to Agency

Appendix B
Appendix C
Packet Pg. 641 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

34 Acknowledgement of Receipt and
Certification of Compliance with Federal Contract Clauses To be completed for all procurements over $10,000.

Contractor/Vendor acknowledges receipt of the attached Federal Contract Clauses and certifies compliance with all federal requirements related to this Contract/Agreement.

Date July 28, 2022
Signature Ahmed Badawi
Company Name Badawi & Associates, CPAs
Title President
The following Certifications are submitted along with this acknowledgement:

Yes N/A
☐ ☒ Certification Regarding Lobbying (for offers exceeding $100,000) ☐ ☒ Government-wide Debarment and Suspension (for offers exceeding $25,000)
☒ DBE Certification
☒ Conflict of Interest
The following clauses which apply only to contracts exceeding $100,000 do not apply to this contract:
☒ 6. Clean Water Act
☒ 7. Lobbying Restrictions
☒ 11. Clean Air Act
☒ 12. Recycled Products
☒ 21. Breaches and Dispute Resolution
☒ Exhibit C Certificate for Lobbying

Packet Pg. 642 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

35 Certification Regarding Lobbying
Certification for Contracts, Grants, Loans, and Cooperative Agreements (To be submitted with each bid or offer exceeding $100,000) The undersigned Contractor certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for making lobbying contacts to an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form--LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions [as amended by "Government wide Guidance for New Restrictions on Lobbying," 61 Fed. Reg. 1413 (1/19/96). Note: Language in paragraph (2) herein has been modified in accordance with Section 10 of the Lobbying Disclosure Act of 1995 (P.L. 104-65, to be codified at 2 U.S.C. 1601, et seq.)] (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31, U.S.C. § 1352 (as amended by the Lobbying Disclosure Act of 1995). Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
[Note: Pursuant to 31 U.S.C. § 1352(c)(1)-(2)(A), any person who makes a prohibited expenditure or fails to file or amend a required certification or disclosure form shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such expenditure or failure.]
Contractor certifies or affirms the truthfulness and accuracy of each statement of its certification and disclosure, if any. In addition, the Contractor understands and agrees that the provisions of 31 U.S.C. A 3801, et seq., apply to this certification and disclosure, if any.

Date N/A
Signature of Contractor's Authorized Official N/A
Name of Contractor's Authorized Official N/A
Title of Contractor's Authorized Official N/A
Company Name N/A

Packet Pg. 643 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

36 Government-Wide Debarment and Suspension
49 CFR Part 29
(To be submitted with each bid or offer equal to or exceeding $25,000) The Contractor certifies that, neither the Contractor firm nor any owner, partner, director, officer, or principal of the Contractor, nor any person in a position with management responsibility or responsibility for the administration of federal funds:
(a) Is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal or state department/agency; (b) Has within a three-year period preceding this certification been convicted of or had a civil judgment rendered against it for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public transaction or contract (federal, state, or local),; violation of federal or state antitrust statutes; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
(c) Is presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (b) above; or,
(d) Has within a three-year period preceding this certification had one or more public transactions or contracts (federal, state, or local) terminated for cause or default.

The contractor further certifies that it shall not knowingly enter into any transaction with any subcontractor, material supplier, or vendor who is debarred, suspended, declared ineligible, or voluntarily excluded from covered transactions by any federal or state department/agency.

Date July 28, 2022
Signature of Contractor's Authorized Official
Name of Contractor's Authorized Official Ahmed Badawi
Title of Contractor's Authorized Official President
Company Name Badawi & Associates, CPAs
Company Address 2855 Telegraph Avenue, Suite 312
Company City/State/Zip Code Berkeley, CA 94705
Company Area Code/Telephone Number/E-Mail Address:
510-768-8244 / [email protected]
The certification in this clause is a material representation of fact relied upon by RABA. If it is later determined that the bidder or proposer knowingly rendered an erroneous certification, in addition to remedies available to RABA, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. The bidder or proposer agrees to comply with the requirements of 49 CFR 29, Subpart C while this offer is valid and throughout the period of any contract that may arise from this offer.

The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions

Packet Pg. 644 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

37 Disadvantaged Business Enterprise Information Form
Background
The term "Disadvantaged Business Enterprise" or "DBE" means a for-profit small business concern as defined in Title 49, Part 26.5, Code of Federal Regulations (CFR). It is the policy of the Redding Area Bus Authority (RABA), the California Department of Transportation (CalTrans), and the U.S. Department of Transportation that DBE's have the maximum opportunity to participate in the performance of contracts financed in whole or in part with federal transportation funds. A certified DBE may participate in the performance of RABA contracts as a contractor, subcontractor, joint venture partner, or as a vendor of material or supplies.

Requirements and Purpose of Form
The awardee shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of subcontracts. Even if no DBE participation will be reported, the awardee shall check the "No DBE Participation" option below (Option #1), and sign and return this form.

Resources
The California Unified Certification Program (CUCP) may be used for DBE certification and to identify firms eligible to participate as DBE's. The CUCP database may be accessed on-line at http://www.californiaucp.com. If you believe a firm is certified but cannot locate it in the CUCP database, you may contact the CalTrans Office of Certification toll free number 1-866- 810-6346 for assistance. If you do not have internet access, you may order a written directory of certified DBE firms from the CalTrans Division of Procurement and Contracts/Publication Unit, 1900 Royal Oaks Drive, Sacramento, CA 95815, telephone 916-445-3520.

Demonstration of Good Faith Effort
DBE Utilization
(Awardee must check Option #1 or Option #2 below, provide required information regarding certified DBE's, and sign this Certification Page 2)
None? Initial Here and skip to Contractor Certification below.

X Option #1 - No Certified DBE participation proposed for this contract Utilizing DBE? Initial Here and complete all info below.

Option #2 - It is proposed that the following DBE's be used on this contract (you may attach additional sheets if necessary).

Letter of Intent

N/A N/A
Name of Certified DBE DBE Certification No.

N/A N/A
DBE Address DBE Telephone No.

DBE E-Mail Address

N/A N/A
Capacity of DBE (e.g. contractor, subcontractor, $ Amount DBE Participation Vendor)
N/A
Description of services or materials to be provided by DBE Packet Pg. 645 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

38 Affirmation
The above-named DBE firm affirms that it will perform the portion of the contract for the estimated dollar value as stated above.

By N/A N/A
(Signature) (Title)
If the bidder/offeror does not receive award of the prime contract, any and all representations in this
Letter of Intent and Affirmation shall be null and void.

Contractor Certification
Submitted by:

July 28, 2022
Signature Date
Ahmed Badawi, President
Print Name and Title
N/A
Name of Contractor, if different from Signatory

Packet Pg. 646 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

39 Disclosure of Conflicts of Interest
It is RABA's policy that each entity that enters into a contract with RABA is required, prior to entering into such contract, to inform RABA of any real or apparent organizational conflict of interest. Such organizational conflict of interest exists when the nature of the work to be performed under a contract may, without some restriction on future activities, result in an unfair competitive advantage to the contractor, or may impact the contractor's objectivity in performing the contract work. Based on this policy:
a. The offeror shall provide a statement in its proposal which describes in a concise manner all past, present or planned organizational, financial, contractual or other interest(s) with RABA, or with an organization whose interests may be substantially affected by RABA activities, and which is related to the work under this solicitation. The interest(s) described shall include those of the proposer, its affiliates, proposed consultants, proposed subcontractors and key personnel of any of the above. Past interest shall be limited to within one year of the date of the offeror's technical proposal. Key personnel shall include any person owning more than 20% interest in the offeror, and the offeror's corporate officers, its senior managers and any employee who is responsible for making a decision or taking an action on this contract where the decision or action can have an economic or other impact on the interests of a regulated or affected organization. The offeror shall describe in detail why it believes, in light of the interest(s) identified in (a) above, that performance of the proposed contract can be accomplished in an impartial and objective manner.
b. In the absence of any relevant interest identified in (a) above, the offeror shall submit in its proposal a statement certifying that to its best knowledge and belief no affiliation exists relevant to possible conflicts of interest. The offeror must obtain the same information from potential subcontractors prior to award of a subcontract. c. The Purchasing Officer will review the statement submitted and may require additional relevant information from the offeror. All such information, and any other relevant information known to RABA, will be used to determine whether an award to the offeror may create a conflict of interest. If any such conflict of interest is found to exist, the Purchasing Officer may (1) disqualify the offeror, or (2) determine that it is otherwise in the best interest of RABA to contract with the offeror and include appropriate provisions to mitigate or avoid such conflict in the contract awarded. d. The refusal to provide the disclosure or representation, or any additional information required, may result in disqualification of the offeror for award. If nondisclosure or misrepresentation is discovered after award, the resulting contract may be terminated. If after award the Contractor discovers a conflict of interest with respect to the contract awarded as a result of this solicitation, which could not reasonably have been know prior to award, an immediate and full disclosure shall be made in writing to the Purchasing Officer. The disclosure shall include a full description of the conflict, a description of the action the contractor has taken, or proposes to take, to avoid or mitigate such conflict. The Purchasing Officer may, however, terminate the contract for convenience if he or she deems that termination is in the best interest of RABA. ☐ I believe a conflict exists or has existed in the past 12 month, and I have attached a statement describing such conflict in a concise manner. ☒ To the best of my knowledge and belief no affiliation exists relevant to possible conflicts of interest with specific regard to this contract.

July 28, 2022
Signature Date
Ahmed Badawi, President
Print Name and Title
Packet Pg. 647 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit City of Redding Technical Proposal

40 Notification to Agency
(Legal Matters pertaining to FTA)
Vendor hereby acknowledges that if a current or prospective legal matter that may affect the Federal Government interest in the contract emerges, Vendor must promptly inform the Redding Area Bu Authority so that it may notify the Federal Transit Administration and/or it’s designee, the California Department of Transportation.

The types of legal matters that require notification include, but are not limited to, a major dispute, breach, default, litigation, or naming the Federal Government as a party to litigation or a legal disagreement in any forum for any reason.

Badawi & Associates, CPAs
Firm Name
/ President July 28, 2022
Authorized Signature/Title Date
Packet Pg. 648 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit WWW.LSLCPAS.COM
`
PREPARED BY:

Lance, Soll & Lunghard, LLP
Certified Public Accountants
License Number 2584
203 N. Brea Blvd.

Suite 203
Brea, CA 92821
(714) 672-0022
Proposal Presented to
City of Redding
for
Audit Services
(Schedule Number 5308)
CONTACT PERSON:

Brandon Young, CPA
Engagement Partner
[email protected]
(916) 562-1579
July 28, 2022
Packet Pg. 649 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 1 TABLE OF CONTENTS
TABLE OF CONTENTS ........................................................................................................................... 1 COVER LETTER ...................................................................................................................................... 2 INTRODUCTION ...................................................................................................................................... 3

1. Organization, Size, and Years in Business ................................................................................................... 3

2. Location of Office ........................................................................................................................................... 3

3. Designated Contact & Key Members of Engagement Team ......................................................................... 3

4. Activity Description of Office .......................................................................................................................... 3

5. License to Practice in California .................................................................................................................... 3

6. Independence ................................................................................................................................................ 4

7. Peer Review .................................................................................................................................................. 4 SUMMARY OF QUALIFICATIONS .......................................................................................................... 5 Firm Background .................................................................................................................................................... 5 Client References .................................................................................................................................................. 5 Quality of Staff Assurance ..................................................................................................................................... 6 Engagement Team, Staff Qualifications, and Experience ..................................................................................... 6 Organizational Chart .............................................................................................................................................. 7 APPROACH TO THE EXAMINATION ..................................................................................................... 7 Understanding of the Engagement Requirements ................................................................................................. 7 Work plan & Specific Audit Approach .................................................................................................................... 8 Proposed Segmentation ........................................................................................................................................ 9 Level of Staff and Number of Hours to Be Assigned ........................................................................................... 11 Sample Size And Extent Of Statistical Sampling ................................................................................................. 12 Type And Extent Of Analytical Procedures .......................................................................................................... 12 Approach to Understanding the City’s Internal Control Structure ........................................................................ 12 Determining Laws And Regulations Subject To Audit Test Work ........................................................................ 13 Drawing Audit Samples ........................................................................................................................................ 13 Singe Audit Experience ........................................................................................................................................ 13 APPENDIX A – ENGAGEMENT TEAM RESUMES
APPENDIX B – CURRENT LIST OF MUNICIPAL CLIENTS
APPENDIX C – REQUIRED EXHIBITS
1 Packet Pg. 650 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 2 COVER LETTER
July 28, 2022
Amber Edenburn
Purchasing Officer
City of Redding
777 Cypress Avenue
Redding, CA 96001
Dear Ms. Edenburn,
LANCE, SOLL & LUNGHARD, LLP (“LSL CPAs”, “LSL”) is pleased to respond to your request for proposal for audit services. We value the opportunity to present our professional qualifications to the City of Redding (“City”).

This proposal highlights our firm’s strength and stability, along with our demonstrated experience, knowledge, passion, and creative problem-solving capabilities. Our collective experience in local government accounting backed by our comprehensive understanding of all federal and state grant programs awarded to municipalities has refined our development of efficient procedures and streamlined work plan approach, which we believe makes LSL one of the best qualified teams to perform this engagement for the City of Redding.

LSL CPAs acknowledges receipt of Addendum No. 1 issued on July 11, 2022. We affirm that our proposal is in accordance with all terms, conditions, and requirements contained in the RFP. Our proposal is a firm and irrevocable offer for 90 days following the closing date of the receipt of proposals.

Brandon Young is the assigned Engagement Partner for this proposal and is authorized to make representations on behalf of our firm. He can be reached by phone at (916) 562-1579 or by email at [email protected].

Sincerely,
Brandon Young, CPA, Partner
Lance, Soll & Lunghard, LLP
2 Packet Pg. 651 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 3 INTRODUCTION

1. ORGANIZATION, SIZE, AND YEARS IN BUSINESS
LSL CPAs was established in 1929 and has grown as a leader in the government sector. LSL is a fullservice accounting firm with company headquarters in Brea, California and additional offices located in Laguna Hills, Santa Ana, and Sacramento California, as well as in Houston, Texas. Our firm has one hundred and forty-three (143) employees, including fifteen (15) Partners. Our governmental team consists of four (4) Partners, one (1) Senior Manager, six (6) Managers, five (5) Supervisors, and eleven (11) Professional Staff.

2. LOCATION OF OFFICE
The engagement team for the City will be staffed by our California and Texas teams, leveraging the proper resources to ensure a quality end-product. All staff assigned to the City will be employed by LSL on a full-time basis.

3. DESIGNATED CONTACT & KEY MEMBERS OF ENGAGEMENT TEAM
Brandon Young is the assigned Engagement Partner for this proposal and is authorized to make representations on behalf of our firm. He is an expert in governmental accounting and auditing, and serves on the CalCPA Governmental Accounting and Auditing Committee, a committee specific to the State of California that has been responsible for numerous white papers and technical clarifications, including those for GASB 68 and 75. This equips our firm with the latest knowledge and expertise to train our government audit professionals on the proper implementation of new GASB pronouncements, an competitive advantage that extends to our clientele.

Key employees to be assigned to the engagement include Ryan Domino, Kelly Telford, Frank North, Christian Townes, and Samantha Asbra. Team resumes can be found in Appendix A which lists their education, including continuing education courses taken during the past three years, position in the firm, and years and types of experience. The audit team will also consist of an additional 1 to 2 staff auditors for audit fieldwork.

4. ACTIVITY DESCRIPTION OF OFFICE
Our team of industry experts hold extensive experience providing auditing services for cities, counties, and special-purpose government agencies, and have top industry experience in performing Single Audits.

We prepare the financial statements and footnote disclosures for most of our local governments that have received the GFOA award. We lead seminars and training courses on introductory government accounting, preliminary views on financial reporting, internal control risk assessments, and all GASB updates and best practices.

5. LICENSE TO PRACTICE IN CALIFORNIA
LSL CPAs is a limited liability partnership and is not a wholly owned subsidiary of a parent company. LSL is a public accounting firm licensed by the State of California, Department of Consumer Affairs, as a Public Accounting Partnership. As a firm, we are members of the American Institute of Certified Public 3 Packet Pg. 652 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 4 Accountants and the California Society of Certified Public Accountants. All key staff to be assigned to this engagement are or will be licensed by the State of California to practice as Certified Public Accountants.

6. INDEPENDENCE
LSL CPAs meets the independence requirements as defined by the Government Auditing Standards and are independent of all component units of the City as defined by those standards. Our partners do not own any other business organization that has in the past, or will in the future, be providing services, supplies, materials, or equipment to the City. A listing of our firm’s clients is distributed annually to all employees for review and proper documentation of possible independence threats.

7. PEER REVIEW
Our firm has participated in the Peer Review Program since its inception. All our peer reviews have covered governmental engagements and have received pass ratings. Our most recent peer review was conducted by Mark F. Wille, A Professional Accountancy Corporation.

A copy of the report is included below.

4 Packet Pg. 653 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 5 SUMMARY OF QUALIFICATIONS

FIRM BACKGROUND
LSL CPAs provides auditing, accounting, and consulting services to over 70 municipal clients, including cities, counties, water and electric utilities, and special-purpose government agencies. Generally, our government sector services break down into the following major classifications: attestation, compliance, consulting, outsourced accounting and reporting, year-end close assistance, interim staffing, strategic planning, and tax services.

CLIENT REFERENCES
Below is a showcase of our experience in providing auditing and management consulting services. These are currently being provided and reflect our similar engagements with other large governmental organizations with services such as those outlined in the Scope of Work of this request for proposal (Schedule 5308).

City of Roseville
Contract Value $160,000
Dates of Services 2021 – present
Scope of Work Audit of the City’s ACFR which receives the GFOA award; Single Audit; compliance audit and preparation of the financial statements of City’s Water and Electric Utility, Environmental Utilities, OPEB Trust, Natural Gas Financing Authority, “Bizz Johnson” Highway Interchange JPA; application of agreed-upon procedures (AUP) over the City’s two golf courses.

Contact Nicholas Rosas, Accounting Manager
Address 311 Vernon St.

Roseville CA 95678
E-mail Address [email protected]
Telephone 916-774-5314
Engagement Team Deborah Harper, Engagement Partner; Bryan Gruber, Quality Assurance Partner; Brandon Young, Field Partner; Jocelyn Potter, Audit Manager; Amira Khodari, Supervisor

5 Packet Pg. 654 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 6 County of Yolo
Contract Value $110,000
Dates of Services 2019 – present
Scope of Work Audit of City’s ACFR receiving the GFOA award; Single Audit; audit of County’s Treasury, GASB 68 and 75 Employer Allocation Schedules Contact Chad Rinde, Chief Financial Officer
Address 625 Court Street
Woodland, CA 95695
Email Address [email protected]
Telephone (707) 648-5433
Engagement Team Deborah Harper, Engagement Partner; Brandon Young, Field Partner; Bryan Gruber, Quality Assurance Partner
City of Vallejo
Contract Value $115,000
Dates of Services 2019 – present
Scope of Work
Audited and prepared Annual Comprehensive Financial Report (ACFR), receiving the GFOA award. Performed a separate audit of City’s Housing Authority, single audits, and issued report on City’s appropriation limit.

Contact Rekha Nayar, Finance Director
Address 555 Santa Clara Street, #3
Vallejo CA 94590
Email Address [email protected]
Telephone (707) 648-5433
Engagement Team Brandon Young, Engagement Partner; Deborah Harper, Quality Assurance Partner; Jocelyn Potter, Audit Manager

QUALITY OF STAFF ASSURANCE
LSL ensures the quality of staffing over the term of the engagement through firm policies which provide for maintaining continuity of engagement teams, except in instances where an employee has left the firm or has been promoted. All other changes in staffing at the Supervisor level and above will first have the City’s expressed written permission.

Our dedicated efforts to obtain and retain quality staff have further enabled us to provide high-level services to our clients. If changes are required, our extensive team of government auditors provides for qualified replacements.

ENGAGEMENT TEAM, STAFF QUALIFICATIONS, AND EXPERIENCE
At LSL, our engagement teams are curated with an optimum mix of talents and formed based on the specific engagement scope of work. Additionally, each of our professionals have developed expert-level 6 Packet Pg. 655 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 7 skills in complementary subjects through their work with other clients in various industries. The partners at LSL are an integral part of the audit process and will be overseeing and supervising staff personnel in the field.

ORGANIZATIONAL CHART

APPROACH TO THE EXAMINATION

UNDERSTANDING OF THE ENGAGEMENT REQUIREMENTS
LSL acknowledges the Scope of Work and understands the requirements as defined in Section II of this request for proposal (Schedule 5308), with the commitment to the contract term of engagement for fiscal years ending June 30, 2023-2026, and the optional consecutive two-year terms ending June 30, 2027 and 2028 at the City’s discretion.

Ryan Domino, CPA
Quality Assurance Partner
Over 10 years of experience
Brandon Young, CPA
Engagement Partner
Over 12 years of experience
Frank North, CPA
Senior Audit Manager
Over 28 years of experience
Christian Townes, CPA
Audit Manager
Over 8 years of experience
Samantha Asbra
Audit Senior
Over 4 years of experience
Staff Auditor Staff Auditor
Kelly Telford, CPA
Technical Resource Partner
Over 18 years of experience
7 Packet Pg. 656 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 8 LSL understands its responsibilities to perform audits and issue opinions on the City’s financial statements as well as the fair presentation of its combining and individual fund statements and schedules, provide “in-relation to” opinions on supporting schedules, performing limited procedures involving required supplementary matters, provide required reports on City Financial Audit & Related Reports, RABA Financial Audit & Related Reports, RHA Financial Audit & Related Reports, RHA REAC AgreedUpon Procedures, Passenger Facility Charge Revenue Compliance Audit, and GANN Limit Agreed-Upon Procedures. These audits will be performed per the auditing standards as defined in the Government Auditing Standards, generally accepted in the United States of America as set forth for financial audits.

LSL will also evaluate the adequacy of the City’s internal control system and will make the best recommendations for the City’s growth and improvement.

Our team has extensive experience in providing audit services and personalized guidance to government entities. LSL affirms the ability to identify audit costs attributable to each entity, grant, or fund to assist in charging each organization for its share of audit costs.

LSL acknowledges and is dedicated to the Time Requirements as defined in Section IV of this request for proposal (Schedule 5308). We affirm the engagement team’s ability to accomplish this engagement during standard office hours or another schedule as approved by the City’s Finance Division.

Throughout the year and during the period of this engagement, our team will be available on a day-today basis for consultation on accounting and reporting matters related to new government accounting standards and other ongoing auditing needs. We will also communicate new state and national developments affecting municipal finance and reporting standards and trends, including changes in federal/state grant program accounting, and other reporting requirements.

Audit Work Papers
All working papers and reports will be retained at LSL’s expense for a minimum of three (3) years unless we are notified in writing by the City of the need to extend that retention period. Upon written request, we will make working papers available to parties designated by the City. Furthermore, we will respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance.

WORK PLAN & SPECIFIC AUDIT APPROACH
We utilize a governmental audit program which will be tailored to the City’s operations. This is crucial to accommodate specific circumstances and differences in organizational structures. LSL’s audit programs are organized by financial statement category. The primary benefit is to substantially reduce the risk of omitting important procedures. We believe that this approach tends to be the most effective and efficient for an entity such as the City of Redding. The audit procedures are listed in the most logical sequence which improves efficiency.

Our audit programs are designed to increase audit efficiency by linking financial statement assertions, audit objectives, and procedures that are basic to most governmental audit engagements. 8 Packet Pg. 657 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 9 PROPOSED SEGMENTATION
The services will be divided into three segments.

Segment 1 - Planning and Obtaining an Understanding: LSL will provide an annual audit communication letter, engagement letter, and Government Audit Quality Center Information letter. The audit communication letter is to be provided to the Board of Directors and can be communicated orally to the Board of Directors or audit committee, if requested. This communication will discuss the planning stages, the responsibilities of the Board of Directors, Auditors, and Management, and provides an opportunity for communication with us as the auditors.

An entrance conference will be scheduled ahead of the on-site visit that is used to obtain an understanding of the City’s internal controls over the City. This meeting helps to ensure that the transition to new auditors is as seamless as possible. Discussions in this meeting include, but are not limited to, the following: Understanding of reports and key milestones for deliverables, prior audit reportable conditions and issues, and “Prepared by Client” (PBC) schedules.

LSL’s audit team will meet before our initial on-site visit to brainstorm and discuss economic conditions, industry elements, and new standards that will affect the City. A trial balance is requested for our planning meeting to assist the LSL team in obtaining knowledge and preparing expectations for the audit year. We will compile a list of PBC items based on our review of the prior year's financial statements and the information gathered. This will be provided to the City one month prior to our visit or earlier if requested.

We operate on a paperless software system and provide a secured cloud-based portal for all clients. The Ctiy will have a separate folder that can be customized to organize, and upload requested schedules, support documents, etc.

If available, a current Schedule of Expenditures of Federal Awards (SEFA) will be evaluated during this segment to make a preliminary determination of the City’s major programs. This allows us to properly plan and schedule the timing of the Single Audit with the appropriate finance personnel as well as appropriate grant managers. LSL will make every effort to be proactive in our network of federal grants during the interim stages of the audit.

After our interim on-site visit, we will have an exit meeting to discuss potential weaknesses, if any, and provide any feedback for improvements or valuable information we have gathered from our outside clientele that would benefit the City.

Segment 2 - Financial Audit Testing: Based on the information gathered each year thus far, we will utilize a customized audit program based on the risk assessment developed during our assessment of the City’s internal controls and Government Auditing Standards. The primary benefit of a tailored program is a focused set of procedures to address relevant areas. We believe that this approach will be the most effective and efficient by linking financial statement assertions, audit objectives, and procedures that are basic to most governmental audit engagements and critical to compliance with other material laws and regulations. We will annually compile another customized PBC list for the year-end on-site visit provided at least one month prior or earlier if requested. 9 Packet Pg. 658 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 10 We will request trial balances from the City for our analytical review to be provided one week before our arrival.

Year-end fieldwork will include testing of the balance sheet, revenue and expenditures accounts, confirmation of selected balances, analytical procedures, evaluation of the internal controls, and preparation of reports and letters.

Segment 3 - Conclusion: Based on our year-end exit meeting we will schedule a plan to finalize the ACFR according to the timetable of the City. We will schedule dates for the initial and final drafts including time for LSL’s and the City’s review and approval of the financial statements. This period will also account for the review of the engagement partner and quality assurance partner. After the review and receipt of the signed Representation Letter from the City, we will provide the final report by mid-October of each year.
[Time estimates on following page]

10 Packet Pg. 659 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 11 LEVEL OF STAFF AND NUMBER OF HOURS TO BE ASSIGNED

Segment/Task Partners
Senior
Manager Manager Senior Staff Clerical Total
City Financial Audit & Related Reports
Interim Testwork - 2 10 40 80 2 134
Year-End Testwork - 4 10 50 100 2 166
Report/Review/Supervision 20 4 10 10 - 1 45
Subtotal 20 10 30 100 180 5 345
RABA Financial Audit & Related Reports
Testwork - - - - 15 - 15
Report/Review/Supervision 5 5 5 20 15 1 51
Subtotal 5 5 5 20 30 1 66
RHA Financial Audit & Related Reports
Testwork - - - - 15 - 15
Report/Review/Supervision 5 5 5 20 15 1 51
Subtotal 5 5 5 20 30 1 66
RHA REAC Agreed-Upon Procedures
Testwork - - 5 - - - 5
Report/Review/Supervision - - 5 - - 1 6
Subtotal - - 10 - - 1 11
Single Audit & Related Reports**
Testwork - - - 10 20 - 30
Report/Review/Supervision 2 2 4 10 - 2 20
Subtotal 2 2 4 20 20 2 50
Passenger Facility Charge Revenue
Compliance Audit
Testwork - - - - 8 - 8
Report/Review/Supervision 1 - 1 1 - 1 4
Subtotal 1 - 1 1 8 1 12
GANN Limit Agreed-Upon Procedures
Testwork - - - - 1 - 1
Report/Review/Supervision - - 1 1 - 1 3
Subtotal - - 1 1 1 1 4
TOTAL PROPOSED HOURS: 33 22 56 162 269 12 554
** Hours proposed are for one major program.

TOTAL PROPOSED HOURS
11 Packet Pg. 660 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 12 SAMPLE SIZE AND EXTENT OF STATISTICAL SAMPLING
Our approach is to utilize statistical sampling in the areas of receipts, disbursements, utility billing, and payroll, where we develop a statistical conclusion based upon an initial computer selected random sample based on the population and other risk factors identified. If errors are noted in the sample, the sample size will be expanded. We believe that a random selection can be efficient while providing each item in the population an equal chance of being selected. Additionally, we may select a stratified sample of all transactions over a specified dollar limit for review. This allows us to cover all high dollar value transactions not otherwise selected in the random sample. Our samples are selected randomly utilizing IDEA data analysis software.

TYPE AND EXTENT OF ANALYTICAL PROCEDURES
For the audits of the financial statements, we will use analytical procedures as an overall review of the financial information in the preliminary and final stages of the audits. These procedures are designed to assist us in planning our audits and in assessing the propriety of the conclusions reached and evaluating the overall financial statement presentation. The procedures to be utilized consist of determining expectations for changes to significant revenue, expenditure, and balance sheet accounts, reading the financial statements and related notes, reviewing the budget and related material, and focusing on overall relationships within the financial statements. Once determined, these are reviewed to evaluate if the changes appear reasonable or require further analysis. For all significant differences, explanations are obtained as to why the situation occurred and additional substantive procedures may be applied, and related evidence gathered to resolve concerns and questions.

We ask that the City provide a check register electronically for July 1st forward (period after the audit year), so we can pre-select our sample for accounts payable cut-off test work and provide that information ahead of time. Our PBC list will detail out schedules we would like provided, which is directed straight from the audit report. Support requested and sampling for these schedules will be assessed each year based on the strengths and weaknesses of the internal control processes of the City, and the materiality level of the account. We will discuss our analytical variances with the City and obtain documentation that provides support for the accounts.

APPROACH TO UNDERSTANDING THE CITY’S INTERNAL CONTROL STRUCTURE To gain an understanding of the internal control structure over the financial statements, LSL will perform procedures as required by SAS 122-125. This will include a review of internal controls in the areas of financial reporting, cash, revenues and receivables, utility billing, expenses, and accounts payable, payroll, capital assets, long-term debt, and grant reporting, as applicable.

Based on the result of our review, LSL will issue a management letter (SAS 115 Letter) that will identify any significant deficiencies and/or material weaknesses noted. This report is required by the Government Auditing Standards issued by the Comptroller General of the United States. Auditing Standards require auditors to obtain an understanding of the entity and its environment along with assessing the risks of material misstatements. LSL obtains an understanding through a variety of ways throughout the year, but the most pertinent time each year is during our interim on-site visit. We will conduct interviews with the management of finance along with each audit section responsible party (e.g., cashier, accounts 12 Packet Pg. 661 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 13 payable clerk, payroll clerk, etc.) to review the processes and controls through observation and discussions. Based on our observations, we will sample transactions as part of a “walk-through” to verify the system of control is working in accordance with policies and procedures. Each year, we will provide a list of randomly selected City employees to interview for SAS 99 fraud interviews. This list will consist of all levels and across all departments within the City.

DETERMINING LAWS AND REGULATIONS SUBJECT TO AUDIT TEST WORK The Laws and Regulations that will be subject to audit test work are determined from the applicable laws, regulations, contracts, and grant agreements which we identify through the understanding we obtain of the City and our extensive experience with governmental entities.

DRAWING AUDIT SAMPLES
For tests of controls, we use audit sampling. Tests of controls are procedures directed towards determining the effectiveness of the design or operation of an internal structure policy or procedures.

Normally, audit sampling is used for tests of controls and tests of compliance that involve inspection of documents and reports indicating the performance of the applicable policy or procedures and compliance with the applicable laws and regulations. These sampling procedures test the operating effectiveness of an internal control structure policy or procedures by determining how the policy or procedure was applied, the consistency with which it was applied during the audit period, and by whom it was applied. To achieve this goal, we will draw samples for disbursements, receipts, and payroll when applicable. Each document selected will be tested for various attributes that are designed to verify compliance with different aspects of internal controls and applicable laws and regulations. Additionally, each sample item will be tested for coding to the proper accounts and posting to the general ledger. Sample sizes vary based on the population and risk-based calculations.

SINGE AUDIT EXPERIENCE
Our firm has significant experience in performing Single Audits for local government agencies. We perform Single Audits for many of our clients under the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance).

A list of government audit clients is included on Appendix B and notes clients for which a single audit has been performed in the last fiscal year. In addition, the table on the following page details a few examples of federal programs that LSL has had recent experience in auditing. 13 Packet Pg. 662 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit 14 Federal Granting Agency AL # Name of Program
U.S. Department of Agriculture 10.557 Special Supplemental Nutrition Program for Women, Infant, and Children U.S. Department of Housing & Urban Development 14.195 Section 8 Housing Assistance Payment Program U.S. Department of Housing & Urban Development 14.218 Community Development Block Grants/Entitlement Grants U.S. Department of Housing & Urban Development 14.228 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii
U.S. Department of Housing & Urban Development 14.239 HOME Investment Partnerships Program U.S. Department of Housing & Urban Development 14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation U.S. Department of Housing & Urban Development 14.871 Section 8 Housing Choice Vouchers U.S. Department of Transportation 20.106 Airport Improvement Program U.S. Department of Transportation 20.205 Highway Planning and Construction U.S. Department of Transportation 20.507 Federal Transit Formula Grants U.S. Environmental Protection Agency 66.458 Capitalization Grants for Clean Water State Revolving Funds U.S. Department of Health and Human Services 93.563 Child Support Enforcement U.S. Department of Health and Human Services 93.667 Social Services Block Grant U.S. Department of Health and Human Services 93.676 Unaccompanied Alien Children Program U.S. Department of Health and Human Services 93.778 Medical Assistant Program - Medicaid Cluster U.S. Department of Homeland Security 97.036 Disaster Grants- Public Assistance (Presidentially Declared Disasters) U.S. Department of Homeland Security 97.067 Homeland Security Grant Program 14 Packet Pg. 663 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit EXHIBIT A – ENGAGEMENT TEAM RESUMES
Packet Pg. 664 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Brandon Young, CPA

ENGAGEMENT PARTNER

ACHIEVEMENTS
Brandon Young is an expert in Governmental Accounting and Auditing, with over 11 years of experience serving a wide range of clients in both size and type. In 2017, he established LSL’s first Northern California office, and has nearly tripled the size of the office in just over two years.

CONTINUING EDUCATION
125 total hours over the last three years, 74 of which were in governmental accounting and auditing subjects. Brandon meets the requirements of governmental CPE Government Auditing Standards.

EXPERIENCE
Brandon has performed all phases of governmental audits and has made numerous presentations to City Councils, Board of Supervisors, Board of Directors, and Audit Committees. He routinely presents at CSMFO, local chapter meetings and CalSACA on current accounting and auditing material, and currently serves on the CalCPA Governmental Accounting and Auditing Committee, and he also served as a technical reviewer for the GFOA for over three years.

He regularly teaches current audit and accounting related material at LSL training seminars, webinars, and client education workshops and training events.

His work has entailed:
 The preparation of the ACFR for entities involved in CSMFO and GFOA in the U.S. and Canada
 Audit review and technical assistance throughout the year to deliver the most up to date information with current GASB pronouncements
 Presentation of audit results to Audit Committees or others charged with governance

MEMBERSHIPS
California Society of Certified Public Accountants (CalCPA) American Institute of Certified Public Accountants (AICPA) CalCPA State Governmental Accounting & Auditing Committee (GAA) California Society of Municipal Finance Officers (CSMFO) Government Finance Officers Association, Associate Member (GFOA)

EDUCATION
Bachelor of Arts Degree in Accounting, Magna Cum Laude – Vanguard University, 2012

LICENSE
Certified Public Accountant –
California 2014

ENGAGEMENTS
City of Camarillo
City of Chula Vista
City of Citrus Heights
City of Coronado
City of Dinuba
City of Dixon
City of Emeryville
City of Galt
City of Lathrop
City of Live Oak
City of Livingston
City of Menlo Park
City of Newark
City of Pasadena
City of Pleasanton
City of Riverside
City of Roseville
City of Santa Monica
City of Shafter
Coachella Valley Water District
County of Sutter
County of Yolo
Covered California
East Bay Municipal Utility District
GDPUD
Inland Empire Utilities Agency
Monterey Peninsula Airport District
Orange County Water District
San Joaquin Council of Governments
Santa Clarita Valley Water Agency
Three Valleys Municipal Water District
Union Sanitary District
Packet Pg. 665 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Ryan Domino, CPA

QUALITY ASSURANCE PARTNER

ACHIEVEMENTS
Ryan currently serves as a technical reviewer for the Government Finance Officers Association (GFOA). He has been involved with teaching current audit and accounting related material at Lance, Soll & Lunghard’s in-house training seminars.

CONTINUING EDUCATION
231 total hours over the last three years, 204 of which were in governmental accounting and auditing subjects. Ryan meets the requirements of governmental CPE Government Auditing Standards.

EXPERIENCE
Ryan has over ten years of experience in governmental auditing including financial statement audits, preparation of Annual Comprehensive Financial Reports, Housing Successor compliance audits, TDA compliance audits, Single Audits, Federal Student Financial Aid audits, and various consulting and agreed-upon procedures projects.

Ryan is one of the firm’s leaders in ensuring audit quality control and Government Practice training for staff. He has also made several presentations to City Councils, Boards of Directors, and Audit Committees.

His work has entailed:
 The preparation of the ACFR for entities involved in CSMFO and GFOA in the U.S. and Canada
 Audit review and technical assistance throughout the year to deliver the most up to date information with current GASB pronouncements  Presentation of audit results to Audit Committees and other authorities charged with governance

MEMBERSHIPS
American Institute of Certified Public Accountants (AICPA) California Society of Certified Public Accountants (CalCPA) California Society of Municipal Finance Officers (CSMFO) Government Finance Officers Association, Associate Member (GFOA)

EDUCATION
Bachelor of Arts Degree in Business Administration with an emphasis in Accounting – California State University, Fullerton, 2012

LICENSE
Certified Public Accountant –
California 2014
Texas – pending
Advanced Single Audit
Certificate – 2018

ENGAGEMENTS
Big Bear Fire Authority
City of Agoura Hills
City of Big Bear Lake
City of Canyon Lake
City of Chino Hills
City of Chula Vista
City of Fullerton
City of Indio
City of Malibu
City of Moorpark
City of Oceanside
City of Pasadena
City of Riverside
City of Rolling Hills
City of Rosemead
City of San Clemente
City of San Marino
City of Santa Monica
City of Solana Beach
City of Vista
Clean Energy Alliance
Coachella Valley Association of Govt.

Diversified Education Company
Inland Empire Utilities Agency
L.A. County Development Authority
Orange County Fire Authority
Rainbow Municipal Water District
San Bernardino Municipal Water Dept.

Six Basins Watermaster
Packet Pg. 666 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Kelly Telford, CPA

TECHNICAL RESOURCE PARTNER

ACHIEVEMENTS
Kelly has served as Director of Finance/City Treasurer for the County of Los Angeles, the City of Costa Mesa, and the City of Seal Beach, and developed her expertise in accounting and auditing, financial forecasting, budget development, public utilities, investment management, grant management, human resources, and information technology.

CONTINUING EDUCATION
130 total hours over the last three years, 104 of which were in governmental accounting and auditing subjects. Kelly meets the requirements of governmental CPE Government Auditing Standards.

EXPERIENCE
Kelly has over 18 years of experience working both in and with government agencies including large and small Cities, redevelopment agencies/successor agencies, Special Districts, and Native American Tribes and Tribal Casinos. She has been an auditor and consultant for 13 years specializing in the audits of government agencies.

As an auditor, her experience as a Director of Finance/City Treasurer has helped her better appreciate the demands of government agency finance departments and she strives to have a collaborative relationship yearround, not just during the audit.

Her work has entailed:
 The preparation of the ACFR for entities involved in CSMFO and GFOA in the U.S. and Canada
 Audit review and technical assistance throughout the year to deliver the most up to date information with current GASB pronouncements Presentations to City Councils, Board of Supervisors, Boards of Directors, and Audit Committees

MEMBERSHIPS
American Institute of Certified Public Accountants (AICPA) California Society of Certified Public Accountants (CalCPA) California Society of Municipal Finance Officers (CSMFO) Government Finance Officers Association (GFOA)

EDUCATION
Bachelor of Arts Degree in Accounting – California State University, Fullerton, 2003

LICENSE
Certified Public Accountant –
California 2014
Texas – pending

ENGAGEMENTS
City of Banning
City of Corona
City of Coronado
City of Monrovia
City of Vista
Orange County Fire Authority
Orange County Sanitation District
Orange County Water District
San Diego County Water Authority
Three Valleys Municipal Water District
Packet Pg. 667 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Frank North, CPA

SENIOR MANAGER

ACHIEVEMENTS
Frank currently serves as a technical reviewer for the Government Finance Officers Association (GFOA). He has earned the Advanced Single Audit Certification issued by the AICPA for planning, performing, and evaluating Single Audits in compliance with the Uniform Guidance.

CONTINUING EDUCATION
142 total hours over the last three years, 86 of which were in governmental accounting and auditing subjects. Frank meets the requirements of governmental CPE Government Auditing Standards.

EXPERIENCE
With over twenty-eight years of experience in governmental audits, Frank has established himself as an outstanding asset and resource at LSL. He has demonstrated his talents in the areas of municipal accounting and auditing. During his time with the firm, Frank has performed all phases of our municipal audits, including ACFR audits, successor agency audits, component units, municipal utilities, and single audits. He has been involved in the following municipal engagements.

His work entailed the preparation of the Comprehensive Annual Financial Report for those entities involved in the award programs of the California Society of Municipal Finance Officers and the Government Finance Officers Association of the United States and Canada.

MEMBERSHIPS
American Institute of Certified Public Accountants (AICPA) California Society of Certified Public Accountants (CalCPA) Government Finance Officers Association (GFOA)

EDUCATION
Bachelor of Arts Degree in Business Administration, emphasis in Accounting California State University, Fullerton, 1990

LICENSE
Certified Public Accountant –
California 1996

ENGAGEMENTS
City of Big Bear Lake
City of Chino Hills
City of Grand Terrace
City of Irwindale
City of Malibu
City of Manhattan Beach
City of Ontario
City of Palm Springs
City of Rancho Cucamonga
City of Riverside
City of Santa Barbara
Eastern Municipal Water District
L.A. Community Development Auth.

Packet Pg. 668 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Christian Townes, CPA

AUDIT MANAGER

ACHIEVEMENTS
Christian oversees audit engagements and completes technical reviews of financial statements. She brings with her extensive experience, knowledge, and application of GAAP, Auditing Standards (GAS & GAAS), and the principles of internal accounting controls as it relates to clientspecific matters.

CONTINUING EDUCATION
142.7 total hours over the last three years, 127.2 of which were in governmental accounting and auditing subjects. Christian meets the requirements of governmental CPE Government Auditing Standards.

EXPERIENCE
She has performed all phases of our government audits, including special districts, ACFR audits, and Single Audits.

Her work has entailed:
 Assisting in the preparation of the Annual Comprehensive Financial Report
 Performing analytical and substantive audit procedures on account balances
 Planning the nature, timing, and extent of procedures involved in the audit process audits in accordance with the provisions of Government Auditing Standards and the provisions of the Single Audit Act and the Uniform Guidance
 Assisting clients with the preparation and review of GASB 68, 75, and 84 journal entries
 Review of capital assets, debt service, and federal and state award schedules

MEMBERSHIPS
American Institute of Certified Public Accountants (AICPA) Government Finance Officers Association (GFOA)

EDUCATION
B.S. in Accounting with a minor in Economics –
The College at Brockport, State University of New York, 2012 A.S. in Business Administration – Genesee Community College, 2010

LICENSE
Certified Public Accountant –
New York 2015

ENGAGEMENTS
Attica Central School District
Batavia City School District
City of Batavia
City of Geneva
City of Rochester
Genesee County
Genesee County COC
Genesee Finger Lakes RPC
Iroquois Trail Council
LeRoy Central School District
Notre Dame High School
Pembroke Central School District
Rochester City School District
Rochester EDC
Rochester Land Bank Corporation
Town of Batavia
Town of Chili
Town of LeRoy
Town of North Dansville
Town of Ogden
Town of Parma
Village of Albion
Village of Alden
Village of Depew
Village of Oakfield
Village of Webster
Village of Wellsville
Warsaw Central School District
West Irondequoit Central School Dist.

Wyoming County Business Center
Packet Pg. 669 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Samantha Asbra, MSA

AUDIT SENIOR

ACHIEVEMENTS

ACHIEVEMENTS
AICPA Intermediate Single Audit Certificate – 2021

CONTINUING EDUCATION
Total hours were 150 over the last three years, 100 of which were in governmental accounting and auditing subjects. Samantha has met the Governmental Auditing Standards requirement for governmental CPE.

EXPERIENCE
During her time with the firm, Samantha has progressed in an outstanding manner. She has performed all phases of our government audits, including water districts, other special districts, ACFR audits, successor agency audits and Single Audits.

Her work has entailed:
 Assisting in the preparation of the Annual Comprehensive Financial Report (ACFR)
 Performing analytical and substantive audit procedures on account balances
 Planning the nature, timing and extent of procedures involved in the audit process
 Assisting clients with the preparation and review of GASB 68, 75, and 84 journal entries
 Review of capital asset, debt service, federal and state award schedules

EDUCATION
Master of Science Degree in Accountancy – Saint Mary’s College of California, 2020
Bachelor of Science in Business Administration, Accounting – Drexel University, 2019

ENGAGEMENTS
City of Dixon
City of Livingston
City of Lodi
City of Menlo Park
City of Newark
City of Pleasanton
City of Roseville
City of Vacaville
City of Vallejo
City of Woodland
County of Sutter
County of Yolo
Covered California
Georgetown Divide Public Utility District
Monterey One Water
Monterey Peninsula Airport District
San Joaquin Council of Governments
Union Sanitary District

Packet Pg. 670 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit EXHIBIT B – CURRENT LIST OF MUNICIPAL CLIENTS
Packet Pg. 671 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit olum Client Contact Person Services Years Phone
Agoura Hills Ms. C. Pinuelas, Finance Manager F 7 818-597-7319 * Big Bear Lake Ms. K. Ent, Director of Government Services F, S 24 909-866-5831 Burbank Ms. C. L Giraldo, Financial Services Director I 11 818-238-5487 * Camarillo Mr. M. Uribe, Finance Director F, S 5 805-388-5320 Canyon Lake Mr. C. Mann, City Manager F 27 909-244-2955 * Cathedral City Mr. K. Biersack, Fiscal Officer F, S 12 760-770-0378 * Chino Hills Ms. C. Buhagiar, Finance Director F, S 25 909-364-2600 * Chula Vista Ms. S. Schoen, Director of Finance F, S 8 619-409-3818 * Citrus Heights Mr. R. Prasad, Accounting Manager F, S 3 916-727-4705 * Citrus Heights Water District Mr. A. Preciado, Accounting Manager F, U 1 916-735-7703 Covered California Mr. J. Watkins, Chief Financial Officer F, S 6 916-228-8223 * Cypress Ms. D. Mullally, Assistant Finance Director F, S 5 714-229-6700 * Diamond Bar Mr. J. Jacobsen, Finance Director F, S 12 909-839-7051 * Dinuba Ms. K. Solis, Interim Administrative Services Director F, S 4 559-591-5900 * Dixon Ms. K. Zawadzki, Finance Director F, S 7 707-678-7000 * Downey Mr. A. Gandhy, Finance Director F, S 7 562-904-7265 * East Bay Municipal Utility District Ms. A. Miller, Controller F, U 3 510-287-0230 * Eastern Municipal Water District Ms. W. Garriz, Controller F, S 1 951-928-3777 * Fullerton Ms. C. Moynihan, Fiscal Services Manager F, S 11 714-738-3133 * Galt Ms. C. Nguyen, Accounting Manager F, S 4 209-366-7140 Georgetown Divide Public Utility District Mr. A. Coyan, General Manager F, S 4 530-333-4356 Grand Terrace Ms. C. Clayton, Senior Accountant F 8 909-824-6621 * Indio Mr. R. Rockwell, Assistant City Manager/Director of Finance F, S 6 760-391-4029 Inglewood Ms. L. Gomez, Accounting Manager F, S 7 310-412-5127 * Irwindale Ms. J. Duran, Finance Director F 27 626-430-2268 Jurupa Community Services District Mr. S. Popelar, Director of Finance and Administration F 3 951-685-7434 * Lake Elsinore Ms. S. Buckley, Finance Manager F, S 5 951-674-3124 Lathrop Mr. T. Hedegard, Deputy Finance Director F, S 1 209-941-7320 * Live Oak Mr. J. Ramsey, Finance Director F, S 5 916-999-8511 Livingston Ms. V. Portillo, Finance Director/Interim City Manager F, S 1 209-394-5550 * Lompoc Ms. C. Donnelly, Acting Management Services Director F, S 1 805-875-8283 * Los Angeles County Development Authority Mr. M. Fortini, Finance Director F, S 5 626-586-1890 * Malibu Ms. R. Feldman, City Manager F 18 310-456-2489 * Manhattan Beach Mr. S. Charelian, Finance Director F 17 310-802-5553 * Menlo Park Ms. P. Barboza, Interim Finance & Budget Manager F 3 650-330-6632 * Monrovia Mr. B. Bullis, Director of Administrative Services F, S 21 626-932-5510 * Monterey One Water Mr. F. Marsh, Chief Financial Officer F, S, U 7 831-645-4623 Monterey Peninsula Airport District Mr. T. Bergholz, Deputy Executive Director of Finance and Administration F, S 3 831-648-7000 x201 * Moorpark Mr. P. Gagajena, Finance Director F, S 4 805-517-6213 * Newark Ms. K. Lee, Finance Director F 3 510-578-4288
* Oceanside Ms. J. Moya, Accounting Manager F, S 13 760-435-3887 Ontario International Airport Ms. K. Snow, Finance Manager F, S 5 714-415-9636 * Orange Ms. K. Bandhauer, Assistant Finance Director F, S 1 714-744-5500 * Orange County Fire Authority Ms. G. Cheung, Accounting Manager F, S 3 714-573-6000 Orchard Dale Water District Mr. R. Richard, Finance Manager F, U 3 562-941-0114 * Palm Desert Mr. J. Espinoza, Assistant Finance Director F 5 760-346-0611 * Pleasanton Ms. T. Olso, Finance Director F, S 1 925-931-5402 * Rancho Cucamonga Ms. T. Layne, Finance Officer F, S, U 44 909-989-1851 * Redondo Beach Ms. J. Paul, Finance Director F, S 5 310-372-1171x2428 * Rialto Ms. K. Stevens, Deputy Director of Finance F, S 1 909-421-7242 * Riverside Ms. N. Garcia, Controller F, S, U 3 951-826-5466 Current List of Municipal Clients
Packet Pg. 672 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit olum Client Contact Person Services Years Phone
Rolling Hills Mr. R. Samario, Interim Finance Director F 13 310-377-1521 * Rosemead Ms. G. Molleda, City Manager F, S 4 626-569-2146 * Roseville Mr. N. Rosas, Accounting Manager F, S 1 916-774-5314 * San Bernardino Municipal Water Department Ms. C. Mouser, Director of Finance F 3 909-453-6010 * San Clemente Mr. J. Rahn, Finance Director F 4 949-361-8360 * San Joaquin Council of Governments Ms. G. Orosco, Manager of Finance F, S 3 209-235-0454 * San Juan Capistrano Mr. K. Al-Imam, Chief Financial Officer F, S 1 949-443-6301 San Marino Mr. M. Siegfried, Controller F 28 626-300-0700 * Santa Clarita Valley Water Agency Ms. A. Aguer, Controller F, U 3 661-513-1237 * Santa Monica Ms. G. Decavalles-Hughes, Finance Director F, S 6 310-458-8281 * Shafter Mr. R. Sanchez, Administrative Services Director F, S 1 661-746-5043 Six Basins Watermaster Mr. L. Stahlhoefer, Controller F 13 949-420-3030 * Solana Beach Mr. R. Smith, Finance Director F 10 858-720-2463 Sonoma County Fair & Exposition, Inc. Mr. M. Margetts, Fair Financial Officer F 3 707-573-9342 Sutter County Mr. N. Black, Auditor-Controller F, S 2 530-822-7439 * Three Valleys Water District Mr. J. Linthicum, Chief Financial Officer F, U 14 909-621-5568 * Union Sanitary District Ms. L. Brenner, Finance & Acquisition Services Coach F, U 5 510-477-7647 * Yolo County Mr. C. Rinde, Chief Financial Officer F, S 3 530-666-8050 * - Participated in the GFOA Award Programs and has received or anticipates receiving outstanding awards U - Utility Agency
Service Codes:

F - Financial Audit
S - Single Audit
I - Internal Audit
Packet Pg. 673 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit EXHIBIT C – REQUIRED EXHIBITS
 Exhibit A – Acknowledgement of Receipt and Certification of Compliance with Federal Contract Clauses
 Exhibit C – Certification Regarding Lobbying
 Exhibit D – Government-Wide Debarment and Suspension
 Exhibit E – Disadvantaged Business Enterprise Information Form  Exhibit F – Disclosure of Conflicts of Interest

Packet Pg. 674 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Redding Area Bus Authority Required Federal Clauses - Professional Services

EXHIBIT A

ACKNOWLEDGEMENT OF RECEIPT AND

CERTIFICATION OF COMPLIANCE WITH FEDERAL CONTRACT CLAUSES To be completed for all procurements over $10,000.

Contractor/Vendor acknowledges receipt of the attached Federal Contract Clauses and certifies compliance with all federal requirements related to this Contract/Agreement.

Date ______________________________________________________ Signature ______________________________________________________ Company Name______________________________________________________ Title ______________________________________________________ The following Certifications are submitted along with this acknowledgement:

Yes N/A
  Certification Regarding Lobbying (for offers exceeding $100,000)   Government-wide Debarment and Suspension (for offers ∃ $25,000)  DBE Certification
 Conflict of Interest
The following clauses which apply only to contracts exceeding $100,000 do not apply to this contract:
 6. Clean Water Act
 7. Lobbying Restrictions
 11. Clean Air Act
 12. Recycled Products
 21. Breaches and Dispute Resolution
 Exhibit C Certificate for Lobbying
July 28, 2022
Lance, Soll & Lunghard, LLP
Partner
Packet Pg. 675 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Redding Area Bus Authority Required Federal Clauses - Professional Services EXHIBIT C, 49 CFR PART 20--CERTIFICATION REGARDING LOBBYING Certification for Contracts, Grants, Loans, and Cooperative Agreements (To be submitted with each bid or offer exceeding $100,000) The undersigned Contractor certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for making lobbying contacts to an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form--LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions [as amended by "Government wide Guidance for New Restrictions on Lobbying," 61 Fed. Reg. 1413 (1/19/96). Note: Language in paragraph (2) herein has been modified in accordance with Section 10 of the Lobbying Disclosure Act of 1995 (P.L. 104-65, to be codified at 2 U.S.C. 1601, et seq.)]
(3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31, U.S.C. § 1352 (as amended by the Lobbying Disclosure Act of 1995). Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
[Note: Pursuant to 31 U.S.C. § 1352(c)(1)-(2)(A), any person who makes a prohibited expenditure or fails to file or amend a required certification or disclosure form shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such expenditure or failure.] Contractor certifies or affirms the truthfulness and accuracy of each statement of its certification and disclosure, if any. In addition, the Contractor understands and agrees that the provisions of 31 U.S.C. A 3801, et seq., apply to this certification and disclosure, if any.

Date ___________________________________________
Signature of Contractor's Authorized Official____________________________________________ Name of Contractor's Authorized Official_______________________________________________ Title of Contractor's Authorized Official________________________________________________ Company Name __________________________________________________________________ July 28, 2022
Brandon Young
Partner
Lance, Soll & Lunghard, LLP
Packet Pg. 676 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Redding Area Bus Authority Required Federal Clauses - Professional Services

EXHIBIT D

GOVERNMENT-WIDE DEBARMENT AND SUSPENSION
49 CFR Part 29
(To be submitted with each bid or offer equal to or exceeding $25,000) The Contractor certifies that, neither the Contractor firm nor any owner, partner, director, officer, or principal of the Contractor, nor any person in a position with management responsibility or responsibility for the administration of federal funds:
(a) Is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal or state department/agency; (b) Has within a three-year period preceding this certification been convicted of or had a civil judgment rendered against it for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public transaction or contract (federal, state, or local),; violation of federal or state antitrust statutes; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (c) Is presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (b) above; or, (d) Has within a three-year period preceding this certification had one or more public transactions or contracts (federal, state, or local) terminated for cause or default.

The contractor further certifies that it shall not knowingly enter into any transaction with any subcontractor, material supplier, or vendor who is debarred, suspended, declared ineligible, or voluntarily excluded from covered transactions by any federal or state department/agency.

Date ___________________________________________
Signature of Contractor's Authorized Official____________________________________________ Name of Contractor's Authorized Official_______________________________________________ Title of Contractor's Authorized Official________________________________________________ Company Name __________________________________________________________________ Company Address_________________________________________________________________ Company City/State/Zip Code________________________________________________________ Company Area Code/Telephone Number/E-Mail Address:
________________________________________________________________________________ The certification in this clause is a material representation of fact relied upon by RABA. If it is later determined that the bidder or proposer knowingly rendered an erroneous certification, in addition to remedies available to RABA, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. The bidder or proposer agrees to comply with the requirements of 49 CFR 29, Subpart C while this offer is valid and throughout the period of any contract that may arise from this offer.

The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions.

July 28, 2022
Brandon Young
Partner
Lance, Soll & Lunghard, LLP
203 N. Brea Blvd., Suite 203
Brea, CA 92821
714-672-0022 / [email protected]
Packet Pg. 677 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Redding Area Bus Authority Required Federal Clauses - Professional Services

EXHIBIT E

DISADVANTAGED BUSINESS ENTERPRISE INFORMATION FORM
Background
The term "Disadvantaged Business Enterprise" or "DBE" means a for-profit small business concern as defined in Title 49, Part 26.5, Code of Federal Regulations (CFR). It is the policy of the Redding Area Bus Authority (RABA), the California Department of Transportation (CalTrans), and the U.S. Department of Transportation that DBE's have the maximum opportunity to participate in the performance of contracts financed in whole or in part with federal transportation funds. A certified DBE may participate in the performance of RABA contracts as a contractor, subcontractor, joint venture partner, or as a vendor of material or supplies.

Requirements and Purpose of Form
The awardee shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of subcontracts. Even if no DBE participation will be reported, the awardee shall check the "No DBE Participation" option below (Option #1), and sign and return this form.

Resources
The California Unified Certification Program (CUCP) may be used for DBE certification and to identify firms eligible to participate as DBE's. The CUCP database may be accessed on-line at http://www.californiaucp.com. If you believe a firm is certified but cannot locate it in the CUCP database, you may contact the CalTrans Office of Certification toll free number 1-866-810-6346 for assistance. If you do not have internet access, you may order a written directory of certified DBE firms from the CalTrans Division of Procurement and Contracts/Publication Unit, 1900 Royal Oaks Drive, Sacramento, CA 95815, telephone 916-445-3520.

Demonstration of Good Faith Effort
DBE Utilization
(Awardee must check Option #1 or Option #2 below, provide required information regarding certified DBE's, and sign this Certification Page 2)
None? Initial Here and skip to Contractor Certification below. _________ Option #1 - No Certified DBE participation proposed for this contract Utilizing DBE? Initial Here and complete all info below. _________ Option #2 - It is proposed that the following DBE's be used on this contract (you may attach additional sheets if necessary).

Letter of Intent
Name of Certified DBE DBE Certification No.

DBE Address DBE Telephone No.

DBE E-Mail Address
Capacity of DBE (e.g. contractor, subcontractor, $ Amount DBE Participation vendor)
Packet Pg. 678 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Redding Area Bus Authority Required Federal Clauses - Professional Services Description of services or materials to be provided by DBE Packet Pg. 679 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Redding Area Bus Authority Required Federal Clauses - Professional Services Name of Certified DBE DBE Certification No.

DBE Address DBE Telephone No.

DBE E-Mail Address
Capacity of DBE (e.g. contractor, subcontractor, $ Amount DBE Participation vendor)
Description of services or materials to be provided by DBE Affirmation
The above-named DBE firm affirms that it will perform the portion of the contract for the estimated dollar value as stated above.

By __________________________________________________________ (Signature) (Title)
If the bidder/offeror does not receive award of the prime contract, any and all representations in this Letter of Intent and Affirmation shall be null and void.

Contractor Certification
Submitted by:

Signature Date
Print Name and Title
Name of Contractor, if different from Signatory
July 28, 2022
Brandon Young, CPA, Partner
Lance, Soll & Lunghard, LLP
Packet Pg. 680 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Redding Area Bus Authority Required Federal Clauses - Professional Services

EXHIBIT F

DISCLOSURE OF CONFLICTS OF INTEREST
It is RABA's policy that each entity that enters into a contract with RABA is required, prior to entering into such contract, to inform RABA of any real or apparent organizational conflict of interest. Such organizational conflict of interest exists when the nature of the work to be performed under a contract may, without some restriction on future activities, result in an unfair competitive advantage to the contractor, or may impact the contractor's objectivity in performing the contract work. Based on this policy:
a. The offeror shall provide a statement in its proposal which describes in a concise manner all past, present or planned organizational, financial, contractual or other interest(s) with RABA, or with an organization whose interests may be substantially affected by RABA activities, and which is related to the work under this solicitation. The interest(s) described shall include those of the proposer, its affiliates, proposed consultants, proposed subcontractors and key personnel of any of the above. Past interest shall be limited to within one year of the date of the offeror's technical proposal. Key personnel shall include any person owning more than 20% interest in the offeror, and the offeror's corporate officers, its senior managers and any employee who is responsible for making a decision or taking an action on this contract where the decision or action can have an economic or other impact on the interests of a regulated or affected organization. The offeror shall describe in detail why it believes, in light of the interest(s) identified in (a) above, that performance of the proposed contract can be accomplished in an impartial and objective manner.
b. In the absence of any relevant interestidentified in (a) above, the offeror shall submit in its proposal a statement certifying that to its best knowledge and belief no affiliation exists relevant to possible conflicts of interest. The offeror must obtain the same information from potential subcontractors prior to award of a subcontract.
c. The Purchasing Officer will review the statement submitted and may require additional relevant information from the offeror. All such information, and any other relevant information known to RABA, will be used to determine whether an award to the offeror may create a conflict of interest. If any such conflict of interest is found to exist, the Purchasing Officer may (1) disqualify the offeror, or (2) determine that it is otherwise in the best interest of RABA to contract with the offeror and include appropriate provisions to mitigate or avoid such conflict in the contract awarded. d. The refusal to provide the disclosure or representation, or any additional information required, may result in disqualification of the offeror for award. If nondisclosure or misrepresentation is discovered after award, the resulting contract may be terminated. If after award the Contractor discovers a conflict of interest with respect to the contract awarded as a result of this solicitation, which could not reasonably have been know prior to award, an immediate and full disclosure shall be made in writing to the Purchasing Officer. The disclosure shall include a full description of the conflict, a description of the action the contractor has taken, or proposes to take, to avoid or mitigate such conflict. The Purchasing Officer may, however, terminate the contract for convenience if he or she deems that termination is in the best interest of RABA.

Packet Pg. 681 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Redding Area Bus Authority Required Federal Clauses - Professional Services  I believe a conflict exists or has existed in the past 12 month, and I have attached a statement describing such conflict in a concise manner.
 To the best of my knowledge and belief no affiliation exists relevant to possible conflicts of interest with specific regard to this contract.

Signature Date
Print Name and Title
X
July 28, 2022
Brandon Young, CPA, Partner
Packet Pg. 682 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Redding Area Bus Authority Required Federal Clauses - Professional Services Notification to Agency
(Legal Matters pertaining to FTA)
Vendor hereby acknowledges that if a current or prospective legal matter that may affect the Federal Government interest in the contract emerges, Vendor must promptly inform the Redding Area Bu Authority so that it may notify the Federal Transit Administration and/or it’s designee, the California Department of Transportation.

The types of legal matters that require notification include, but are not limited to, a major dispute, breach, default, litigation, or naming the Federal Government as a party to litigation or a legal disagreement in any forum for any reason.
_________________________
Firm Name
__________________________ ___________________
Authorized Signature/Title Date
Lance, Soll & Lunghard, LLP
Partner July 28, 2022
Packet Pg. 683 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
RFP No. 5308
For the Fiscal Years Ending June 30, 2023, through 2026 (Optional Fiscal Years Ending June 30, 2027, and 2028)
=========
Submitted By:

Moss, Levy & Hartzheim, LLP
5800 Hannum Avenue, Suite E
Culver City, California 90230
Phone: (310) 670-2745
Fax: (310) 670-1689
CA License No. 6998
Email: [email protected]
Website: www.mlhcpas.com
Submitted On:

July 28, 2022
Contact Person:

Craig A. Hartzheim, CPA: Partner
Hadley Y. Hui, CPA: Partner
Wilson Lam, CPA, CFE, CGFM: Partner
Packet Pg. 684 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL

TABLE OF CONTENTS

Transmittal Letter ............................................................................................................... I

Audit Proposal:

Firm’s Profile ...................................................................................................................... 1 Firm’s Qualifications and Experience ................................................................................. 2 Firm’s Approach to the Examination .................................................................................. 8 Appendices:

Appendix A – License to Practice in The State of California ............................................. 16 Appendix B – Peer Quality Review Report ........................................................................ 17

Appendix C – Resumes ....................................................................................................... 18 Appendix D – Current and/or Recently Completed Governmental Audits ......................... 24 Appendix E – Provided By The Client List ........................................................................ 26 Required Forms:

Exhibit A – Acknowledgement of Receipt and Certification of Compliance with Federal Contract Clauses
Exhibit C – 49 CFR Part 20 – Certification Regarding Lobbying Exhibit D – Government-Wide Debarment and Suspension 49 CFR Part 29 Exhibit E – Disadvantaged Business Enterprise Information Form Exhibit F – Disclosure of Conflict of Interest
Notification to the Agency (Legal Matters Pertaining FTA)

Packet Pg. 685 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit i
OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA
MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS

PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES CRAIG A HARTZHEIM, CPA 9465 WILSHIRE BLVD., 3RD FLOOR 5800 HANNUM AVE., SUITE E HADLEY Y HUI, CPA BEVERLY HILLS, CA 90212 CULVER CITY, CA 90230 ALEXANDER C HOM, CPA TEL: 310.670.2745 TEL: 310.670.2745 ADAM V GUISE, CPA FAX: 310.670.1689 FAX: 310.670.1689
TRAVIS J HOLE, CPA www.mlhcpas.com www.mlhcpas.com

WILSON LAM, CPA
Ms. Amber Edenburn,
Purchasing Officer
City of Redding
777 Cypress Avenue
Redding, CA 96001
Dear Ms. Edenburn,
We are pleased to respond to the Request for Proposal from the City of Redding (City) for independent auditing services. We have prepared our proposal to address each of the specifications included in the City’s Request for Proposal. RFP No. 5308.

Moss, Levy & Hartzheim is an equal opportunity employer.

After sixty-five (65) years in public accounting and forty-five (45) years of performing local governmental and non-profit audits, it is extremely gratifying to witness the continued growth of Moss, Levy & Hartzheim, LLP.

The firm is a regional full-service public accounting firm with offices in Beverly Hills, Culver City, and Santa Maria. We and the entire staff are pleased with not only the continuing development of the firm, but also the progress and economic health of our clients. We understand that governmental accounting is a specialized industry with its own accounting standards and requirements. This why we strive to constantly improve the quality of our professional services. Our degree of dedication, coupled with our ability to inform clients of any new accounting and auditing issues, is paramount to our success.

Our firm currently provides the following services:
 Audits
 Agreed-Upon procedures and other attestation engagements  Accounting services
 Management Advisory Services (Non-Audit Clients)
 Income Tax Services
We feel that our size is such that we are large enough to provide a broad spectrum of services and experience backed by an in-house training program, professional development courses, and an extensive professional library, yet not so large as to become impersonal and rigid. Our informal style allows us to be flexible enough to complete our engagements in a timely manner that is the most convenient for each client. Also, this style allows us to be more accessible to our clients when our clients have questions or concerns.

Our impeccable track record with our municipal clients awarded the GFOA Certificate of Achievement and completing our engagements on time is what makes Moss, Levy & Hartzheim, LLP the Best firm for this engagement.

It is our understanding that we will perform an audit of the City’s basic financial statements and its component units: Redding Housing Authority (Authority), Redding Joint Power Financing Authority (JPA), Redding Capital Services Corporation (Corporation), and Redding Area Bus Authority (RABA). all in accordance in accordance with auditing standards generally accepted in the United States of America as set forth by the American Institute of Certified Public Accountants, with the objective to express an opinion of the fair presentation of the City’s Government-Wide and Fund Financial Statements, which will be in full compliance with the Governmental Accounting Standards Board (GASB) Statements, and the Government Finance Officers Association’s (GFOA) Blue Book.

Packet Pg. 686 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit ii
We expect to express an “in-relation-to” opinion on the combining and individual fund financial statements and supporting schedules based on the auditing procedures applied during the audit. If necessary, we will also perform a single audit on the expenditures of federal grants in accordance with U.S. Office of Management Budget (OMB) Title 2 U.S. Code Federal Regulation Part 200, and applicable laws and regulations and provide an “in-relationto” report on the schedule of expenditures of Federal Awards.

In addition to the procedures deemed necessary to express our opinion on the basic financial statements, we understand that we will also be responsible for performing certain limited procedures involving the management’s discussion and analysis (MD&A) and the required supplementary information (RSI), as mandated by auditing standards generally accepted in the United States of America.

Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America; Government Auditing Standards, issued by the Comptroller General of the United States, including all applicable auditing standards issued by the American Institute of Certified Public Accountants; the provisions of the Single Audit Act Amendments of 1996; if applicable; the U.S. Office of Management and Budget (OMB) Title 2 U.S. Code Federal Regulation Part 200, Uniform Administrative Requirements, Audits of State, Local Governments, and Nonprofit Organizations, all relevant Governmental Accounting Standards Board (GASB) Statements, in accordance with the RFP.

We will perform Agreed-Upon procedures pertaining to the City’s GANN Limit (Appropriation Limit) in compliance with Proposition 111 Article XIII-B Section 1.5 of the California Constitution. We will also prepare a report annually on the City’s GANN Limit regarding the City’s compliance.

It is our understanding that we are responsible for preparing the City’s Annual Comprehensive Financial Report, in conformity with accounting principles generally accepted in the United States of America.; an independent auditor’s report on internal control over financial reporting and on compliance and other matters based on an audit of the basic financial statements of the City performed in accordance with Government Auditing Standards; an independent auditor’s report on compliance with requirements that could have a direct and material effect on each major program and on internal control over compliance in accordance with OMB Title 2 U.S. Code of Federal Regulation Part 200, if applicable; a single audit report which includes a schedule of expenditures of federal awards, footnotes, findings and questioned cost; a compliance report of RABA with the Transportation Development Act, the California Administrative Code, and the Shasta County Regional Transportation Planning Agency, as prescribed by Section 6667 of the California Code of Regulations; a report/opinion required by section 158.67 (c) of the Code of Federal Regulations (CFR) for the Passenger Facilities Charge; and a management letter for the City Council, which also addresses Statement on Auditing Standards (SAS). Other reports will be prepared which are required by the long-term debt agreement of the City or any of its component units.

We will assist the City to submit the City’s Annual Comprehensive Financial Report (ACFR), as requested, for consideration of recognition for Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA).

In addition, we understand we will be responsible for performing audits of the basic financial statements for RABA, and the Authority, all in accordance in accordance with auditing standards generally accepted in the United States of America as set forth by the American Institute of Certified Public Accountants. In addition, the Authority requires us to perform “Agree-Upon Procedures” as outlined by the U.S Department of Housing and Urban Development, Real Estate Assessment Center (REAC), an independent auditor report on the financial data schedules will be submitted for the REAC final submission.

We will ensure the City is implementing all the required Accounting Pronouncements, in accordance with the Governmental Accounting Standards. We will be accessible to the City to discuss any issues or assistance necessary.

We will provide consulting services for minor financial issues as long this does not impede our independence at no additional cost.

The audit work will be completed by staff from our Culver City office.

Packet Pg. 687 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit iii
All noncompliance, significant deficiencies and material weaknesses found during the audit will be communicated in writing. In the required reports on compliance and internal controls, we shall communicate any significant deficiencies and noncompliance issues found during the audit. Significant deficiencies that are also material weaknesses will be identified as such in the report. Non-reportable conditions discovered will be reported in a separate letter to management, which will be referred to in the reports on compliance and internal controls.

All irregularities and illegal acts or indications of illegal acts of which we become aware of during our audit will be immediately reported, in writing, to the City Council, City Manager, City Attorney, City Manager, and the Finance Director .

The percentage of the audit work we expect to accomplish for the 2023 audit year, by month, is shown below:

July October November Total
40% 50% 10% 100%
This proposal for auditing services is an irrevocable offer until October 28, 2022.

Thank you for your consideration and please do not hesitate to contact the authorized representatives listed below with any questions, problems, or concerns.
(1) Craig A. Hartzheim, CPA (2) Hadley Hui, CPA (3) Wilson Lam, CPA, CFE, CGFM Partner Partner Partner
5800 Hannum Ave., Suite E 5800 Hannum Ave., Suite E 5800 Hannum Ave., Suite E Culver City, CA 90230 Culver City, CA 90230 Culver City, CA 90230 (310) 670-2745 (310) 670-2745 (310) 670-2745
Sincerely,
Craig A. Hartzheim, CPA
Partner
Moss, Levy & Hartzheim, LLP is an Equal Opportunity Employer Packet Pg. 688 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
1 FIRM’S PROFILE
Moss, Levy & Hartzheim, LLP is a regional firm that performs audits of governmental and non-profit entities throughout the State of California, from the Oregon border to the Mexico border. For most of our governmental clients, we also prepare their Annual Comprehensive Financial Report. Our firm also performs review and compilation engagements as well as tax and consulting services to clients throughout the United States. Our firm has been in business for sixty-five (65) years in public accounting and forty-five (45) years of performing local governmental and non-profit audits.

The firm currently employs twenty-two (22) professionals, all of whom are trained in governmental auditing, and has annual gross revenues in excess of $4 million dollars. The firm has three (3) offices in California: Beverly Hills, Culver City, and Santa Maria. In the past ten (10) years no name change has occurred.

The audit work will be completed by staff from our Culver City office.

The Culver City office is currently staffed by five (5) certified public accountants (three partners, and two managers). In addition, the Culver City office employs additional managers, senior accountants, and staff accountants. All certified public accountants, managers, senior accountants, and staff accountants are part of the governmental and non-profit audit practice.

It is expected that Craig A. Hartzheim, CPA would be the technical (concurring) partner in charge of the audits of the City. He will be responsible for reviewing the City’s Annual Comprehensive Financial Report (ACFR), all other required statements and reports. He may also be responsible for addressing any City questions or concerns that arise during the year. He has assisted numerous municipal clients and has prepared award-winning ACFRs.

Mr. Wilson Lam, CPA, CFE, CGFM, will be the engagement partner assigned to the audits. As engagement partner, he will oversee the day-to-day operations of the audits, review all audit areas, and be on-site for a majority of the fieldwork. He has assisted many municipal clients and has also prepared numerous award-winning ACFRs. It is the firm’s policy during the first year on the audit engagement to have a partner on-site for a majority of the fieldwork. This policy enables the partner to become acquainted with the City’s daily operations and key personnel.

Our firm currently provides the following services:

Audits & Attestation:

Governmental (cities, special districts, single audits, and school districts) Non-Profit
Commercial
Compliance
Transient Occupancy Tax
Employee Benefit Plans

Accounting Services:

Reviews
Compilations
Bookkeeping
Payroll Taxes
Management Advisory Services (Non-Audit Clients):

Data Processing Services
Business Consultation
Pension and Profit-Sharing Plan Assistance
Acquisition and Mergers
Packet Pg. 689 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
2 FIRM’S PROFILE (CONTINUED)
Our firm currently provides the following services: (Continued) Income Tax Services:

Preparation
Planning
Tax Audits and Negotiations with Internal Revenue Service and Other Taxing Authorities Moss, Levy & Hartzheim, LLP is a properly licensed certified public accounting firm in the State of California. No. 6998. All certified public accountants engaged in the audit of the City are licensed to practice in the State of California and have received at least the minimum number of governmental continuing professional education hours required by the State Board of Accountancy and Government Auditing Standards to perform governmental audits.

Please see Appendix A – License to Practice in The State of California.

Moss, Levy & Hartzheim, LLP is independent of the City, as defined by auditing standards generally accepted in the United States of America, the U.S. General Accounting Office’s Government Auditing Standards, the U.S. Securities and Exchange Commission, and all other authoritative bodies with standard or rule-making authority over the auditing profession.

The firm uses checklists and questionnaires to determine that staff members are independent of each client being audited. We also have each staff member sign a personal independence declaration prior to commencing work on an audit client. The partner in charge of the audit reviews all independence work papers prior to staffing each audit.

Please see Appendix B – Peer Quality Review Report for a copy of our firm’s quality review report, which includes a review of governmental and non-profit engagements. Our Peer Review included reviews of governmental (including municipalities) and non-profit engagements. Due to COVID, the date of our 12/31/20 report was extended to August 31, 2022.

FIRM QUALIFICATIONS AND EXPERIENCE
Our firm has never been the object of any disciplinary action from any federal or state desk review or field review in the past three (3) years, nor is there any unsettled litigation or disciplinary action pending with any state regulatory bodies or professional organization during the past three (3) years.

The firm’s recent local similar auditing experience includes the following:

1. CSMFO and GFOA Award Programs
The firm has or is currently auditing the following entities that have participated in and have received the CSMFO and/or GFOA Award:

City of Bellflower City of Paso Robles
City of Brawley City of Santa Maria
City of Calabasas City of Scotts Valley
City of Campbell City of Susanville
City of Covina City of Tracy
City of Culver City City of Watsonville
City of El Centro City of Westlake Village
City of Eureka City of Winters
City of Fort Bragg City of Yuba City
City of Indio County Sanitation Districts of
City of Laguna Hills Los Angeles County
City of Lathrop Encina Wastewater Authority
City of Lompoc Los Angeles County Flood Control District City of Los Alamitos Ross Valley Sanitary District
City of Pacifica
Packet Pg. 690 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
3 FIRM’S QUALIFICATIONS AND EXPERIENCE (CONTINUED)
The firm’s recent local similar auditing experience includes the following: (Continued)

2. Uniform Guidance
We have performed compliance audits in accordance with Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administrative Requirements, Cost Principle and Audit Requirements for Federal Awards (Uniform Guidance), for our Municipal clients who are required to have compliance audits (which is the majority of our municipal clients) and for all of our School District clients.

3. Federal and State Grant Programs and the Single Audit Each of our municipal clients, the majority of our Special District clients, and all of our School District clients receive Federal and State Grants, which require compliance audits.

Some of our most commonly audited programs are as follows:

Municipal Major Programs:

ARPA Act (2021)
Cares Act Programs
Community Development Block Grant Funds (CDBG)
Federal Emergency Management Act Funds (FEMA)
Section 8 Housing Assistance Payments
Transportation Enhancement Act (TEA)
Airport Improvement Program (AIP)
Economic Development Grants (EDG)
Home Investment Partnerships Program (HOME)
Capitalization Grants for State Revolving Funds
Surveys, Studies, Investigations, and Special Purpose Grants Other Common Municipal Programs:

COPS Grants (including LLEBG)
Asset Seizure Funds
Retired Senior Volunteer Program

3. Federal and State Grant Programs and the Single Audit (continued) Other Major Programs:

Senior Nutrition Programs
Child Nutrition Programs
Title I
Title VI
Migrant Education
Vocational Education
Special Education

4. Non-profit Agencies
We have audited numerous non-profit agencies and have also prepared their federal and state tax returns. Currently, our firm performs audit and/or tax preparation services for sixteen (16) non-profit agencies.

Packet Pg. 691 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
4 FIRM’S QUALIFICATIONS AND EXPERIENCE (CONTINUED)
The firm’s recent local similar auditing experience includes the following: (Continued)

5. State Controller’s Report and Street Reports
We have prepared State Controller’s Reports, Transit, and Street Reports for numerous Cities and Special Districts. We feel this experience allows us to assist our clients in their preparation of the State Controller’s Reports or prepare the reports as a separate engagement for our clients.

6. Investment Compliance
In addition to financial statement audits, we also review our clients’ compliance with their investment policies and examine investment types, including, but not limited to, an evaluation of maturity dates (short-term or long-term), types and category, and collateral to ensure proper disclosure of risk in the basic financial statements.

7. Bond Reporting
The firm has assisted several Cities in reviewing franchise financial statements as part of reviewing franchise requests for rate increases. In addition, the firm has performed transient occupancy audits for ten Municipalities and has performed various audits of operating lease charges (such as use of a sewage treatment plant based on percentage of use by our client and actual expense as recorded by the treatment plant operator).

8. TOT, Refuse and Other Audits
The firm has recently concluded auditing lease agreements between the County of Los Angeles and a lessee for a period of 15 years. The firm has assisted several cities in reviewing franchise financial statements as part of reviewing franchise requests for rate increases. In addition, the firm has performed transient occupancy audits for ten municipalities and has performed various audits of operating lease charges (such as use of a sewage treatment plant based on percentage of use by our client and actual expense as recorded by the treatment plant operator). The firm has also performed franchise audits of Comcast, AT&T, a local sports park, and others for Municipal clients who have requested them.

9. School Districts
Currently, our firm audits twenty-two (22) School Districts and related Schools throughout the State of California, including three (3) Charter Schools. We have also performed audits of student bodies for nearly all of our School District clients.

10. Special Districts
Currently, our firm audits in excess of one hundred and seventeen (117) special districts including Sanitary Districts, an Open Space District, the County Sanitation Districts of Los Angeles County (all 25 Districts), Water Districts, Recreation Districts, Utility Districts, Cemetery Districts, Community Services Districts, Fire Districts, Ambulance Services Districts, and Airport Districts.

Packet Pg. 692 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
5 FIRM’S QUALIFICATIONS AND EXPERIENCE (CONTINUED)
The firm’s recent local similar auditing experience includes the following: (Continued)

11. Joint Powers Authorities
We have audited the following Joint Powers Authorities (JPAs):

North Coast Emergency Medical Services
Public Agency Self Insurance System
County of San Diego – Emergency Services Organization
Encina Wastewater Authority
Exclusive Risk Management Authority of California
San Diego Geographic Information System
Santa Barbara County Special Education Local Plan Area Joint Powers Agency Santa Barbara Water Purveyors Joint Powers Agency
Tracy Area Public Facilities Financing Authority
Transportation Authority of Marin
West Contra Costa Integrated Waste Management Authority In addition to the joint powers authorities listed above, the majority of our governmental clients are members of joint powers authorities. As such, our firm has experience in reviewing JPA statements and disclosing the appropriate JPA information in the financial statements for each governmental client.

Clients References

CITY OF ARCADIA
$220,500
2016 - Present
Audit of basic financial statements, preparation of the Annual Comprehensive Financial Report (ACFR)
(GFOA Certificate), GASB 34, and Single Audit
Contact: Henry Chen– Finance Services Manager (626) 574-5427 240 W. Huntington Dr. Arcadia, CA 91007
Mr. Wilson Lam, CPA, CFE, CGFM, was the acting manager for this engagement

CITY OF BELLFLOWER
$310,546, and $225,575
2002 - 2012, 2017 to Present
Audit of basic financial statements, preparation of the Annual Comprehensive Financial Report (ACFR)
(GFOA Certificate), GASB 34, Single Audit, and GANN Limit Report Contact: Tae Rhee – Finance Director (562) 804-1424
16600 Civic Center Dr. Bellflower, CA 90706

CITY OF COVINA
$334,530
2014 - 2018
Audit of basic financial statements, preparation of the Annual Comprehensive Financial Report (ACFR)
(GFOA Certificate), GASB 34, and Single Audit
Contact: Anita Agramonte – Finance Director (626) 384-5400 125 E. College St, Covina, CA 91723
Mr. Wilson Lam, CPA, CFE, CGFM, was the acting manager for this engagement Packet Pg. 693 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
6 FIRM’S QUALIFICATIONS AND EXPERIENCE (CONTINUED)
Clients References: (Continued)

CITY OF EUREKA
$495,530
2012 to Present
Audit of basic financial statements, and Single Audit Report, GASB 34 Annual Comprehensive Financial Report (ACFR)
prepared in accordance with GAAP (GFOA Certificate)
Contact: Lane Millar (707) 441-4379
531 K Street, Eureka, CA 95501
Mr. Wilson Lam, CPA, CFE, CGFM, was the acting manager for this engagement

CITY OF LA MIRADA
$253,985
2016 to Present
Audit of basic financial statements, preparation of the Annual Comprehensive Financial Report (ACFR)
(GFOA Certificate), GASB 34, Single Audit, and GANN Limit Report Contact: Melissa Pascual – Finance Services Manager (562) 943-0131 13700 La Mirada Blvd, La Mirada, CA 90368
Moss, Levy & Hartzheim LLP is listed in the Master list of firms for the Counties of Los Angeles and San Diego, currently we audit various grants and component units of these counties.

The firm will maintain staff continuity on the engagement throughout the term of the contract, barring any terminations, illnesses, or other unforeseen circumstances (departure from the firm, promotion, or assignment to another office). At the written request of the City, any Moss, Levy & Hartzheim, LLP employee assigned to the audits can be removed and replaced by another qualified employee. The City retains the right to approve or reject replacements.

Since the firm has three (3) offices in California and a total of twenty-two (22) professionals, we have the ability to provide alternative or additional personnel should such actions become necessary to complete the project in a timely manner. All of our offices have worked together on prior engagements, therefore there would be no problem with additional or alternative personnel from other offices assisting us in the project.

The City will have one partner and one manager assigned to the audit on a full-time basis. In addition, a supervising senior and one (1) to two (2) staff accountants will be assigned to the audits on a full-time basis.

These employees will not be changed except due to unforeseen circumstances.

Mr. Craig A. Hartzheim, CPA would be the technical (concurring) partner in charge of the audits of the City.

Mr. Wilson Lam, CPA, CFE, CGFM, will be the engagement partner assigned to the audits.

Mr. Bin Zeng will be the supervisor assigned to the City’s audit. He will oversee the day-to-day operations of the audits and perform more difficult audit sections. Mr. Zeng has extensive experience auditing municipalities.

Mr. Cody Hartzheim will be the senior auditor assigned to the audits. As supervising senior auditor, it will be his responsibility to oversee the staff accountants, do preliminary reviews of audit sections, and perform more difficult audit sections. Our firm will ensure to schedule more senior staff for the audit.

In addition to the supervisory staff listed above, one (1) or two (2) staff accountants will be assigned to the audits.

All staff accountants have degrees from accredited colleges or universities, have received in-house governmental audit training, and at present, have at least one year of governmental auditing experience.

Packet Pg. 694 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
7 FIRM’S QUALIFICATIONS AND EXPERIENCE (CONTINUED)
Project Organization Chart:

It is the firm’s policy to have our partners, audit managers, and supervisors involved in the managing function of our governmental audits. Having both the partner and audit manager involved in the engagement allows the City to receive immediate response to questions about accounting and audit topics, concerns, and findings.

Mr. David Ortiz will be the computer specialist assigned to the audits, when needed. Mr. Ortiz has extensive knowledge in auditing EDP functions. Mr. Ortiz may also perform the statistical sampling procedures for the audit, also document and test the internal control structure of the computer systems.

Please see Appendix C – Resumes for everyone’s qualifications and experience.

Please see Appendix D – Current and/or Recently Completed Governmental Audits for a list of current governmental audits performed by the firm.

The firm conducts an annual firm-wide two-day training seminar to update all governmental auditors on new pronouncements and improved audit techniques. In addition to this firm sponsored seminar, each governmental auditor attends the annual governmental accounting conference and many other continuing education courses and is updated on current accounting/auditing issues through our journals and supplements, which we receive on a regular basis.

Our firm experiences relatively low turnover in employees as can be seen on individual resumes, so that even our staff auditors have more experience than most other firms can offer. The firm will not use the City as a training ground for its employees.

There will be no subcontractors. All work will be performed by MLH, LLP.

Our firm Moss, Levy & Hartzheim, LLP has not had a professional relationship with the City or any of its component units/agencies/concessionaires for the past five (5) years.

Packet Pg. 695 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
8 FIRM’S APPROACH TO THE EXAMINATION
Overview of the MLH Audit Process
During the first year of the engagement, we will utilize the prior year’s financial statements, the current year’s budget, and our knowledge and understanding of the City’s systems to determine materiality for the different audit sections. Each year, we will select a sample of transactions to determine to what extent the systems are functioning as described to us. The extent of our sample size will depend upon our assessment of the internal control structure and the results of our assessment in accordance with Government Auditing Standards.

Packet Pg. 696 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
9 FIRM’S APPROACH TO THE EXAMINATION (CONTINUED)
The selection of transactions for testing will be made using a combination of random, systematic, and haphazard sampling techniques. We will identify the strength of the systems upon which we can rely in planning our substantive tests. Our internal control review will meet all of the following requirements of AICPA: Statement on Auditing Standards (SAS) No. 55, Consideration of the Internal Control Structure in a Financial Statement Audit, as amended by SAS No. 78; SAS No. 99, Consideration of Fraud in a Financial Statement Audit; SAS No. 106, Audit Evidence; SAS No. 107, Audit Risk and Materiality in Conducting an Audit; SAS No. 108, Planning and Supervision; SAS No. 109, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement; and SAS No. 110, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained.

It is estimated that the sampling size for transaction testing for compliance with systems as actually implemented would be as follows:

I. Minimum of 60 disbursement items, including automatic and manual checks and bank debits.

II. Minimum of 40 - 60 payroll checks, including direct deposits.

III. Minimum of 40 - 60 receipt items, including bank credits.

We have extensive knowledge in auditing computer systems. We have assisted numerous clients with the implementation of accounting software and database business systems. This assistance has provided our firm with a thorough background in computer systems with respect to both the software applications aspect and insight into auditing such systems. It is our policy to have a computer specialist as part of the audit team and to be used on an as-needed basis. This individual assists the audit team in documenting the computer system internal control structure and highlighting strengths and weaknesses relating to the computer structure of the City.

In addition, all our staff is equipped with functional software, such as PPC Audit – e-Tools, Creative Solutions Accounting, Adobe Acrobat, random sampling software, Lacerte Tax Program, and Easy Accounting Software, which contain amortization programs and depreciation programs, and other applications. One of our commercial clients uses oracle which we assisted during the implementation.

We will perform preliminary analytical review procedures using the prior fiscal year’s audited statements and the current fiscal year’s budget. In the preliminary stage, we will adopt ratio analysis procedures to compare the relationships between account balances and classes of transactions between prior periods and against budgets and industry statistics. This may include budgets, trial balances, and/or draft financial statements to help us identify the source of individual fluctuations. We will then adopt trend analysis to compare current data with prior periods, which is particularly useful for analyzing revenue and expenditures. Any unexpected trends or deviations will be discussed with the City’s staff to obtain explanations.

Please see Appendix E – Provided by the Client List (Sample).

During the City’s audit(s), we will ensure the City is implementing all the required Accounting Pronouncements, in accordance with the Governmental Accounting Standards. We will be accessible to the City to discuss any issues or assistance necessary.

Our firm will not request the City to modify or change any of its current schedules or workpapers used for this audit.

Packet Pg. 697 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
10 FIRM’S APPROACH TO THE EXAMINATION (CONTINUED)
The chart below shows some of MLH’s preliminary audit procedures:

Documents Strategy Procedure
None   Go over timing and planning with
Management
Set meeting
Letter   Discuss any matters with predecessor   Standard required communications Internal control memos   Set location site visits Visit sites and go through internal controls, such as parks and recreation,
fire, police, transit, etc.

Obtain budget and budget
amendments
Ensure budgetary compliance Analyze budget‐to‐actual variances Obtain grant documents Ensure grant compliance Analyze grants Obtain policies and procedures Evaluate effectiveness of policies, updates and relate to key compliance matters
Analyze policies and procedures
Obtain client internal control memos,
if they exist
Evaluate internal controls
Short interviews of accounting and selected
operating personnel for documentation of
process
Analyze internal controls, including
computer controls
Obtain prior year financials Determine which items are important for testing
Set preliminary “materiality” limits
Obtain appropriate schedules Ensure effective procedures Testing of cash receipts, cash disbursements, and payroll transactions
Obtain Council minutes Ensure knowledge of key government communication, Look for major agreements
and key decisions
Analyze important events highlighted in
Council meetings, test and inquire as
necessary
Draft confirmations – third party
letters for independent verification of
cash, property taxes, attorney, etc. for
client to sign and auditor to mail
Independent verification of selected balances   Client to prepare letters and auditor to send letters
Develop document request list for
client to review and provide
To clarify client – auditor requests Meet with client and discuss document request list for audit
Preliminary trial balance   Ensure preliminary results make sense Perform selected testing on balances such as receipts, disbursements, and payroll
Obtain updates on retirement plans Discuss GASB 68 & 75 and any changes Audit selected components of any new reports and changes for compliance
Request screen view access only for
computer analysis
Minimize client interruptions and view
transactions
Scan ledgers and accounts for accounting
propriety
Consider site visitations on areas
where there are significant cash, card,
deposits and billing controls, internet
site controls
Focus on controls where the risk assessment
of material misstatement of cash, card and
internet transactions could occur
Site visitations
Legal bills, key litigation Look for commitments, contingencies, and disclosure
Discuss with client, prepare attorney
letters for confirmation and response
Obtain long‐term debt Analyze for disclosure and compliance Obtain and prepare long term debt schedules
Commitments and Contingencies   Ensure auditing standards are applied for proper accrual and disclosure
Send confirmation letters, talk with client,
review disclosures
Packet Pg. 698 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
11 FIRM’S APPROACH TO THE EXAMINATION (CONTINUED)
As part of our audit procedures, we usually request a working trial balance in excel format and access to view general ledger detail directly from the accounting system.

We will also review the following documents to determine compliance with applicable laws and regulations:

1. Minutes of the governing body with special attention to: indications of new revenue sources, including federal and state grants; expense authorizations and related appropriations, including any special or restrictive provisions; appropriation transfers; authorization for bank or other debt incurred; awards to successful bidders; authorization for new leases entered into; changes in licenses, fines, or fees; authorization for fund balance commitments or assignments; and authorization for significant new employees hired.

2. New agreements and amendments to agreements including, but not limited to grant agreements; debt and lease agreements; labor agreements; joint venture agreements; disposition and development agreements; and other miscellaneous agreements.

3. Administrative Code.

4. Investment Policy.

The main extent of our work would be what is required to enable us to express an opinion on the basic financial statements in accordance with:

1. AICPA Industry Audit Guide for State and Local Governmental Units.

2. AICPA Audit Standards.

3. National Committee on Governmental Accounting, Auditing and Financial Reporting (Amended) Publication.

4. Laws of the State of California.

5. Requirements of Title 2 U.S Code of Federal Regulation Part 200, Uniform Administrative Requirements, Cost Principle and Audit Requirements for Federal Awards (Uniform Guidance).

6. Cares Act- Corona Virus Relief Funds

7. Transportation Development Act (TDA)

8. Public Transportation Modernization Improvement and Service Enhancement (PTMISEA)

9. GAO Standards for Audit of Governmental Organizations, Activities and Functions, the Guidelines for Financial and Compliance Audits of Federally Assisted Programs.

10. Our firm’s own additional standards and procedures.

The audit will be conducted in accordance with auditing standards generally accepted in the United States of America. The primary purpose of the audit is to express opinions on the basic financial statements, and such an audit is subject to the inherent risk that material errors or fraud may exist and not be detected by us.

If conditions are discovered which lead to the belief that material errors, defalcations, or fraud may exist, or if any other circumstances are encountered that require extended services, we will promptly advise the City.

If convenient for the City’s staff, the approximate target dates for the fiscal year 2023 audits would be as follows:

1. Entrance Conference call with the City – No later than June 30th

2. Written audit plan and list of schedules for fieldwork – No later than June 30th

3. Multiple meetings or training – Available upon request

4. Interim fieldwork – Second week of July 10th

5. Progress conference with the City – Monthly after Interim fieldwork

6. Year-end fieldwork – Week of October 10th

7. Exit conference – No later than October 20th

8. Draft of the Annual Comprehensive Financial Report – No later than November 20th

9. Final Annual Comprehensive Financial Report – No later than November 30th

10. Other Reports– November 30th

11. Presentation to City Council – Open ( First week of January 2024) Packet Pg. 699 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
12 FIRM’S APPROACH TO THE EXAMINATION (CONTINUED)
By June 30th, we will contact the Finance Director to provide our detailed audit plan for the audit fieldwork.

We will also discuss any matters that may impact our audit procedures on financial reporting, and to discuss prior audit problems. Before year-end fieldwork, we will discuss with the City any assistance the City may need with the year-end closing.

Our audit would begin when it is convenient for the City’s staff. We estimate that in the second week of July, we will perform interim work. Each year, the partner or manager of the firm will contact the Finance Director . The purpose of this contact will be to discuss the scope and timing of the annual audit, to review any accounting issues known at that time, and to address any City’s personnel concerns about the impending audit.

We will schedule approximately two (2) weeks of interim, and up two (2) weeks of final work each year.

During the first year, we will prepare narrative flow charts and other documentation of the internal control structure and of the major systems, such as revenue and cash receipts, purchasing and cash disbursements, payroll and personnel, inventory, property and equipment, grant compliance, investment activities, and the budget process. We will gain this information through discussions with the appropriate City’s staff and the review of available documented policies, organizational charts, manuals, programs, and procedures. Once we obtain this information, we will evaluate the systems of internal controls and revise our standard governmental audit programs.

Our year-end fieldwork would begin on October 9th. The year-end audit work would begin with an analytical review of all significant balance sheet and revenues and expenditures/expense accounts for each fund, which includes substantive tests on all balance sheet accounts. Analytical procedures will be used to supplement the substantive tests, not supplant them. We will perform analytical procedures during interim and year-end fieldwork on all balance sheet and revenue and expense/expenditure accounts.

The primary objective of the year-end audit work is to audit the final numbers that will appear in the basic financial statements of the City. Our fieldwork would also consist of procedures required under SAS No. 99, Consideration of Fraud in a Financial Statement Audit.

We will perform procedures such as:
(a) Confirmations by positive and negative circularization including but not limited to all cash and investment accounts; selected receivable and revenue balances; all bonds, loans, notes payable, and capital leases; all notes receivables; all insurance carriers; all legal firms employed on the City’s business; and other miscellaneous confirmations deemed necessary. (b) Physical verification and observation.
(c) Analysis and review of evidential material.
(d) Interviews and investigative efforts.
(e) Electronic data processing testing for computer and software reliability. (f) Numerous other procedures.

During the entire engagement, our audit team will be determining whether the audit is in compliance with Uniform Guidance, and if this is required through review of the City Council minutes, examination of the general ledger, and discussion with finance personnel. If a Single Audit is required, we would perform tests of specific requirements; claims for advances and reimbursements; and amounts claimed or used for matching in compliance with the Single Audit Act. The compliance audit will be conducted in accordance with auditing standards generally accepted in the United States of America, the GAO Standards for Audits of Governmental Organizations, Programs, Activities, and Functions, and the GAO Guidelines for Financial and Compliance Audits of Federally Assisted Programs.

Packet Pg. 700 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
13 FIRM’S APPROACH TO THE EXAMINATION (CONTINUED)
The chart below shows some of MLH’s final audit procedures:

Document Strategy Procedure
None Set Timing   Entrance conference
Policies and procedures   Review and start risk assessment Set visitation of locations such as, Parks and Rec, Golf Course, etc. Cash and other
controls testing
Obtain updated general ledger Ensure proper closing of books Analyze records and update analytical procedures
Obtain internal control memos, if there
are any changes‐ all key locations
Re‐evaluate internal controls. Assess risk
and dollar significance, brainstorm, look at
IT controls
Update understanding of internal controls
and document key changes
Obtain prior GFOA comments Ensure improvement in financial reporting Implement significant changes in financial reporting methods
Obtain further agreed upon audit
schedules as agreed upon in the contract
and RFP
To commence audit properly on final
numbers
Apply auditing procedures
Analyze capital asset ledgers Review updates from preliminary and analyze for impairment
Obtain capital asset documents and
update for impairments
Contracts and agreements Analyze agreements Test schedules of agreements Journal entries and post‐closing Look for proper accruals and revenue payments
Look at selected billings and revenue
agreements
Risk Management   Determine coverage   Confirm balances and analyze for proper accruals as necessary
Cost allocations Internal service allocation propriety Discuss and analyze internal service cost allocations
Allocation agreements Ensure agreement compliance   Analyze allocations as necessary from client calculations and documents
Obtain OPEB and PERS documents Review for updates, GASB 68 and GASB 75   Read documents and update Obtain updates on retirement plans, and
OPEB
Discuss GASB 68 & 75 and any changes Audit selected components of any new reports and changes for compliance
Bond agreements   Bond compliance Test bond compliance and obtain bond ratings
Contributions Compliance   Analyze significant contributions for compliance
Third party letters   Independent verification of accounts   Match to year‐end books and records and reconcile to accounts
None Ensure proper audit process Hold timely status meetings with the client
Obtain prior year GASB 34 conversion
entries prepare GASB 34 Entries
Ensure that all GASB 34 conversion entries
are proper
Work on current year GASB 34
presentations
Adjusting entries, and any possible
management points
Obtain client agreement Post as necessary with client
None   Compliance with contract and governance Attend audit committee and council meetings
MD&A, prepare financials, reports and
supplementary information
Ensure documents match, are consistent
and appropriately completed
Read MD&A, prepare financials, reports
and supplementary information
The year-end fieldwork should be completed no later than October 20th.

The Governmental Accounting, Auditing and Financial Reporting (GAAFR) issued by the Government Finance Officers Association (the “Blue Book”) and other GFOA publications are often used as additional tools when preparing and reviewing the financial statements of our governmental clients. The firm has and uses its extensive library of current AICPA, GFOA, and GASB publications and pronouncements.

Packet Pg. 701 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
14 FIRM’S APPROACH TO THE EXAMINATION (CONTINUED)
AUDIT SEGMENTS Clerical Staff Senior Supevisor Partner Total Planning 3 3 5 5 16
Risk Assessment 2 5 5 12
Audit Conferences 5 5 10
(Preliminary, Progress,
and Exit)
Correspondence 4 2 6
Review/Documentation of
Internal Controls:

Documentation of systems 15 15 5 2 37
Testing of systems 15 15 5 3 38
Compliance Testing (Includes Single Audit) 40 35 35 10 120 Year End Balances Testing 35 35 20 15 105
Revenue and Expense
Analysis (Analytical Procedures) 10 15 25 15 65
Preparation, Review, and Findings 6 25 25 20 30 106
GRAND TOTAL 10 145 145 125 90 515
Estimated Hours
As part of our audit engagements, we issue our clients management letters if we note certain observations or recommendations that we feel need to be disclosed. Our firm’s philosophy regarding the management letter is that the management letter is to help management improve its internal control and accounting procedures and not to criticize the management in charge. Therefore, we present our management letters to management in draft form for open discussion prior to issuance.

The workpapers for this engagement are the property of Moss, Levy & Hartzheim, LLP and constitute confidential information. However, we may be requested to make certain workpapers available to any Cognizant Agency pursuant to authority given to it by law or regulation. If requested, access to such workpapers will be provided under the supervision of Moss, Levy & Hartzheim, LLP’s personnel.

Furthermore, upon request we may provide photocopies of selected workpapers to the Cognizant Agency.

The Cognizant Agency may intend, or decide, to distribute the photocopies or information contained therein to others, including other governmental agencies.

The workpapers and related audit reports for this engagement will be retained for a minimum of seven (7) years after the date the auditor’s report is issued or for any additional period requested by the parties designated by the Federal or State government or by the City for audit. If we are aware that the auditee is contesting an audit finding, we will contact the auditee for guidance prior to destroying the workpapers.

No additional expenses will be incurred in addition to the personnel services quoted in our Cost Proposal.

Packet Pg. 702 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING

AUDIT PROPOSAL
15 FIRM’S APPROACH TO THE EXAMINATION (CONTINUED)
We do not anticipate any potential problems for this engagement. minimal assistance of the City’s staff is required during the course of the audit; However, we do ask that the City provide the following:
cooperation in answering questions, requested confirmations, bank reconciliations, a general ledger, and other miscellaneous items.

Minimal assistance of the City’s staff is required during the course of the audit as well as during the transition of auditing firms; however, we do ask that the City provide the following: cooperation in answering questions, requested confirmations, bank reconciliations, a general ledger, and other miscellaneous items.

Our firm will complete this engagement during normal business hours and within the timeline approved by the Finance Division without any exceptions.

Under penalties of perjury, I declare that I am an authorized signer and that there are no and have never been any financial interests between any officials or employees of the City of Redding and Moss, Levy & Hartzheim, LLP.

Respectfully submitted,
Craig A. Hartzheim, CPA
Partner
Moss, Levy & Hartzheim, LLP is an Equal Opportunity Employer Packet Pg. 703 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX A – LICENSE TO PRACTICE IN THE STATE OF CALIFORNIA 16 Packet Pg. 704 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX B – PEER QUALITY REVIEW REPORT
17 Our Peer Review included reviews of governmental: municipalities, special districts, school districts, and non-profit engagements.

Packet Pg. 705 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX C – RESUMES
18 Craig A. Hartzheim, CPA – Concurrent/Technical Partner  California licensed C.P.A. with 38 years of audit experience with governmental, non-profit, and commercial entities
 Engagement partner for governmental and non-profit audits (Culver City office) including 25 municipal audits, 40 special district audits (including Los Angeles County Flood Control District and the County Sanitation Districts of Los Angeles County), and 12 school districts and related audits
 Has assisted governmental clients with year-end closings, key position interviews, preparation of award winning Annual Comprehensive Financial Reports, and preparation of State Controller’s Reports
 Has met or exceeded all continuing education requirements including recent courses in the following:
2022, 2021, and 2020 Governmental Accounting Conference 2022, 2021, and 2020 School District Conference
2022, 2021, and 2020, GAAS Update
Single Audits of Governmental Entities
Preparing Governmental Financial Statements
Yellow Book, Government Auditing Standards
GAAS Guide
Other Comprehensive Basis of Accounting (OCBOA) Statements Audit Standards update
Fraud in Audits
Auditing update

 Bachelor of Science degree in Accounting from Marquette University, conferred in 1982  Member of the following:

American Institute of Certified Public Accountants
California Society of Certified Public Accountants
 Knowledgeable in all areas of tax law including non-profit and payroll tax issues Packet Pg. 706 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX C – RESUMES
19 Hadley Y. Hui, CPA – Partner
 California licensed C.P.A. with 24 years of audit experience with governmental, non-profit, and commercial entities
 Partner in charge of 20 municipal audits, 26 special district audits, 8 special audits for the County of San Diego, and 20 school districts and related audits  Partner for the CSS and DPSS Monitoring Projects for Los Angeles County  Has met or exceeded all continuing education requirements including recent courses in the following:
2022, 2021, and 2020 Governmental Accounting Conference 2022, 2021, and 2020 School District Conference
2022, 2021, and 2020, GAAS Update
Yellow Book, Government Auditing Standards
Fraud in Audits
GAAS Guide
Risk-Based Auditing Part 1, Part 2
Accounting and Auditing Update
Guide to Auditing Control Course 1, Course 2
 Extensive knowledge of database systems, networking, and various accounting software  Bachelor of Arts degree in Economics with a minor in Accounting from University of California – Los Angeles, conferred in 1997
 Member of the following:

American Institute of Certified Public Accountants
California Society of Certified Public Accountants
 Knowledgeable in all areas of tax law including non-profit and payroll tax issues Packet Pg. 707 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX C – RESUMES
20 Wilson Lam, C.P.A., C.F.E., C.G.F.M – Engagement Partner  California licensed C.P.A. with 12 years of audit experience with governmental, non-profit, and commercial entities
 Auditor for 18 school district, 18 municipal, and 14 special district audits  Has met or exceeded all continuing education requirements including recent courses in the following:
2022, 2021, and 2020 School District Conference
2022, 2021, and 2020 Governmental Accounting Conference Single Audit Compliance
GASB 34 Training Seminars
Risk-Based Auditing Part 1, Part 2
Accounting and Auditing Update
Guide to Auditing Control Course 1, Course 2
 Bachelor of Arts degree in Accounting and Finance from California State University – Fullerton, was conferred in 2005
Adam Guise, CPA – Partner
 California Licensed CPA with 14 years of audit experience with governmental, nonprofit, and commercial entities  A Bachelor of Science degree in Business Administration with concentrations in Public Accounting and Financial Management from California Polytechnic State University, San Luis Obispo
 Current fieldwork managing partner for 5 cities, 5 school district audits, 12 special districts, and 6 non-profit organizations
 Has assisted governmental clients with year-end closings, preparation of award winning ACFRs, TDA audits, and preparation of State Controller’s Reports  Has met or exceeded all continuing education requirements, including recent courses in the following:
2022, 2021, and 2020 School District Conferences
2022, 2021, and 2020 Governmental Accounting Conferences Audits of State and Local Governments
Single Audits of Governmental Entities
Internal Control Over Governmental Financial Reporting
Advanced Fraud Techniques
California Ethics: Making Ethical Decisions in the Practice of Public Accounting  Previous work experience included 2 years auditing publicly traded corporations with an international public accounting firm
 Knowledgeable in all areas of tax law
Packet Pg. 708 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX C – RESUMES
21 Alexander Hom, CPA – Partner
 California Licensed CPA with 12 years of audit experience with governmental and non-profit entities
 A Bachelor of Arts degree in Business Administration with a concentration in Accounting from California Polytechnic State University, San Luis Obispo  Has assisted governmental clients with year-end closings, key position interviews, preparation of award winning ACFRs, preparation of federal single audits, and preparation of State Controller’s Reports  Manager for 10 cities, 20 special districts, and 12 school districts

 Has attended recent courses in the following:

2022, 2021, and 2020 School District Conferences
2022, 2021, and 2020 Governmental Accounting Conferences Government Financial Reporting
Single Audits of Governmental Entities
Governmental Auditing Standards
Bin Zeng – Supervisor
 Supervisor with 14 years of audit experience with governmental and commercial entities

 Supervisor for 12 municipal audits and 14 special district audits  Has met or exceeded all continuing education requirements including recent courses in the following:
2022, 2021, and 2020 Governmental Accounting Conference 2022, 2021 and 2020 Single Audit Compliance
2022, 2021, and 2020, Accounting and Auditing Standards Update: Risk Assessment Standards
2022 Advanced Audit Standards Workshop: Understanding Risk Assessment 2022, 2021, and 2020, GAAS Update
Auditors’ Responsibilities for Detection of Fraud
Internal Control and Fraud in Governmental Engagements
Government Auditing Standards – Yellow Book
Implementing SAS 112 & 114
Advanced Fraud Techniques
Grants Management
 Bachelor of Arts degree in Business Economics from the University of California – Los Angeles, conferred in 2007
Packet Pg. 709 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX C – RESUMES
22 Cody Hartzheim – Senior Accountant
 Senior Accountant with 7 years of audit experience with governmental, non-profit, and commercial entities
 Senior Accountant for 16 municipal audits and 6 school district audits  Has met or exceeded all continuing education requirements including recent courses in the following:
2022, 2021, and 2020 Governmental Accounting Conference Government Auditing Standards – Yellow Book
2022 Accounting and Auditing Standards Update: Risk Assessment Standards 2022, 2021 and 2020 Single Audit Compliance
 Bachelor of Science in Accounting and Finance from Marquette University, conferred in 2014 Abigail Olson – Senior Accountant
 4 years of audit experience with governmental, non-profit, and commercial entities.  Senior Auditor for 6 cities, 11 school district audits, 8 special districts, and 5 non-profits  Senior auditor for various governmental audits managed by Adam Guise.  Has met or exceeded all continuing education requirements, including recent courses in the following:

2022, 2021, and 2020 Governmental Accounting Conferences 2022, 2021, and 2020 School District Conferences
 A Bachelor of Science degree in Business Administration with a concentration in Accounting from California Polytechnic State University, San Luis Obispo.  A Master of Science degree in Accounting from California Polytechnic State University, San Luis Obispo.

Nicholas Fuchs – Staff Accountant
 Staff Accountant with 1 year of audit experience with governmental and commercial entities 2022 Governmental Accounting Conference
2022 Single Audit Compliance
Government Auditing Standards – Yellow Book
 Bachelor of Science in Business Administration with emphasis in Accounting from California State University – Dominguez Hills, was conferred in 2021 Packet Pg. 710 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX C – RESUMES
23 Susan Chin – Staff Accountant
 Staff Accountant with 8 years of audit experience with governmental and school districts entities  Staff Accountant for 11 municipal audits, 16 special district audits, and 13 school district audits  Staff Accountant for the Los Angeles County DMH Monitoring Projects  Has met or exceeded all continuing education requirements including recent courses in the following:
2022, 2021, and 2020 Governmental Accounting Conference 2022, 2021, and 2020 School District Conference
Single Audit Compliance
GASB 34 Training Seminars
 Bachelor of Science in Business Administration with an emphasis in Accounting from California State University – Los Angeles, was conferred in 2005 Nickolas Hartzheim – Staff Accountant
 Staff Accountant with 2 years of audit experience with governmental and special districts  Staff Accountant for 6 municipal audits, non-profit, and 4 special district audits  Has met or exceeded all continuing education requirements including recent courses in the following:
2022, and 2021 Governmental Accounting Conference
2022, and 2021GAAS Update
Auditors’ Responsibilities for Detection of Fraud
Government Auditing Standards (GAO) Updates and Changes Internal Control and Fraud in Governmental Engagements
Government Auditing Standards – Yellow Book
Implementing SAS 112 & 114

 Bachelor of Science from San Jose University was conferred in 2018 David Ortiz – Computer Specialist
 Auditor with 22 years audit experience with governmental and commercial entities.  Computer specialist – with emphasis in fund accounting software.  Extensive knowledge of database systems, networking, and accounting software.  A Bachelor of Science degree in Business Administration with an emphasis in Accounting from California Polytechnic State University, San Luis Obispo Packet Pg. 711 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX D – CURRENT AND/OR RECENTLY COMPLETED GOVERNMENTAL AUDITS 24 CITIES AND REDEVELOPMENT AGENCIES SCHOOL DISTRICTS
Adelanto, CA Acton-Agua Dulce Unified School District
Arcadia, CA Ballard School District
Arroyo Grande, CA Bellflower Unified School District
Atascadero, CA Beverly Hills Unified School District
Bellflower, CA Blochman Union School District
Buellton, CA Bradley Elementary School District
Brawley, CA Buellton Union School District
Calabasas, CA Calaveras County Schools
California City, CA Calexico Unified School District
Carmel-by-the-Sea, CA Calipatria Unified School District Covina, CA Carpinteria Unified School District
Culver City, CA Casmalia School District
Dinuba, CA Castaic Union School District
Duarte, CA Cayucos Elementary School District
El Centro, CA Coast Unified School District
Eureka, CA Cold Springs School District
Greenfield, CA College Elementary School District
Grover Beach, CA Eastside School District
Healdsburg, CA El Segundo Unified School District
Holtville, CA Garvey School District
Hughson, CA Goleta Union School District
Imperial, CA Graves School District
Indio, CA Heber School District
La Cañada Flintridge, CA Hughes-Elizabeth Lakes Union School District La Habra Heights, CA Keppel Union School District
La Mirada, CA Lancaster School District
Los Alamitos, CA Magnolia Union School District
Morgan Hill, CA Manhattan Beach Unified School District Ojai, CA Mark Twain Union Elementary School District
Paso Robles, CA Meadows Union School District
San Gabriel, CA Mission School District
Santa Maria, CA Monrovia Unified School District
Signal Hill, CA Montecito Union School District
Taft, CA Mulberry School District
Watsonville, CA Novato Unified School District
Westlake Village, CA Orcutt Union School District
Wheatland, CA Pacific Unified School District
Windsor, CA Palmdale School District
Willits, CA Pleasant Valley Union School District
Yuba City, CA Rosemead School District
PUBLIC FINANCING AUTHORITIES San Ardo Elementary School District The majority of our Municipalities issue debt and do San Lucas School District so through an established Public Financing Authority. San Miguel Joint Union School District OTHER SCHOOL ENTITIES Santa Maria Joint Union High School District Academia Semillas del Pueblo Charter School Santa Monica-Malibu Unified School District Albert Einstein Academy Shandon Unified School District Antelope Valley Schools Transportation District Solvang Elementary School District Bright Star Secondary Charter Academy Temple City Unified School District East Bay Regional Occupational Program Torrance Unified School District Garr Academy of Mathematics and Entrepreneurial Studies Vallecito Union School District Pacoima Charter School Westmoreland Elementary School District Santa Ynez Valley Charter School Wilsona School District The Accelerated Schools
Southern California Regional Occupational Center
Stella Middle Charter Academy
Synergy Charter Academy
Tri-Valley Regional Occupational Program
Packet Pg. 712 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX D – CURRENT AND/OR RECENTLY COMPLETED GOVERNMENTAL AUDITS 25 COUNTIES FIRE PROTECTION DISTRICTS
Los Angeles County, CA (Master List) Cayucos Fire Protection District, CA San Diego County, CA (Master List) Lakeport Fire Protection District, CA Orcutt Fire Protection District, CA

SANITATION DISTRICTS
Carpinteria Sanitation District, CA OTHER DISTRICTS
Cayucos Sanitation District, CA Beach Cities Health District County Sanitation Districts of Los Angeles County, CA County of San Diego Emergency Services Organization - All 25 Districts County of San Diego First 5 Commission Encina Wastewater Authority, CA County of San Diego In-Home Supportive Services Montecito Sanitation District, CA Public Authority
Orange County Sanitation District, CA - Internal Audits County of San Diego Health and Human Services Agency Ross Valley Sanitary District, CA Child Development Program Grant Triunfo Sanitation District, CA County of San Diego MIOCR Grant County of San Diego RLETC Grant
UTILITY DISTRICTS County of Los Angeles Delta Sigma Theta, Head Start Georgetown Divide Public Utility District Program, Inc.

County of San Diego DA Office of Auto Ins. Fraud
WATER/IRRIGATION DISTRICTS Grant, Urban Auto Fraud Grant, WC Ins Fraud Grant Aldercroft Heights County Water District, CA Los Angeles County Flood Control District Foothill Municipal Water District, CA Marin/Sonoma Mosquito and Vector Control District Main San Gabriel Basin Watermaster, CA Peninsula Health Care District Marina Water District, CA San Diego Geographic Information Source North Marin Water District, CA Tracy Area Public Facilties Financing Agency San Gabriel Municipal Water District, San Gabriel, CA West Contra Costa Integrated Waste Management Sweetwater Springs Water District, CA Authority
Valley County Water District, CA
Valley of the Moon Water District, CA TRANSPORTATION DEVELOPMENT ACT Arroyo Grande, CA
AMBULANCE SERVICES DISTRICT Brawley, CA
Cambria Community Healthcare District Calexico, CA
North Coast Emergency Medical Services El Centro, CA
Grover Beach, CA
CEMETERY DISTRICTS Holtville, CA
Arroyo Grande Cemetery District, CA Paso Robles, CA
Atascadero Cemetery District, CA San Luis Obispo County and Cities Area Planning Gridley-Biggs Cemetery District, CA Council:

San Miguel Cemetery District, CA Local Transportation Fund Santa Maria Cemetery District, CA State Transit Assistance Fund South County Area Transit, CA
COMMUNITY SERVICES DISTRICTS South County/San Luis Obispo Transit, CA Cambria Community Services District, CA Transportation Agency for Monterey County, CA Cuyama Community Services District, CA Transportation Authority of Marin Groveland Community Services District, CA Association of Monterey Bay Area Governments Heritage Ranch Community Services District, CA Santa Cruz Regional Transportation Commission Los Alamos Community Services District, CA
Nice Community Services District, CA TRANSIENT OCCUPANCY TAX AUDITS Rancho Murieta Community Services District, CA Represented the following municipalities and/or counties Santa Ynez Community Services District, CA in the audit of the hotel "bed tax" records:

Vandenberg Village Community Services District, CA
Arroyo Grande, CA Pismo Beach, CA
RECREATION AND PARK DISTRICTS Bellflower, CA Santa Maria, CA Conejo Recreation and Park District, CA Bishop, CA South Lake Tahoe, CA Isla Vista Recreation and Park District, CA Calexico, CA Whittier, CA Mountains Recreation and Conservation Authority, CA Carmel, CA Ojai, CA Rancho Simi Recreation and Park District, CA
Hayward Recreation and Park District, CA
First 5 San Diego
BUILDING AUTHORITY First 5 San Luis Obispo
County of San Diego Regional Building Authority, CA

COMMISSIONS
Packet Pg. 713 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

CITY OF REDDING
APPENDIX E – PROVIDED BY THE CLIENT (Sample)
26 1 Check registers for all accounts for current fiscal year (7/1 to 6/30) 2 List of awarded bid contracts for FY22-23
3 Current employee list - full name, position, salary information 4 Payroll register for the month of December and June
5 Any MOU and salary schedules - effective during current fiscal year 6 941 payroll forms and reconciliation between 941 forms and payroll GL expenditures 7 Fee schedules FY22-23
8 Cash receipt journal (7/1 - 6/30)
9 Buisness license cash receipt journal and web transaction report (7/1 - present) 10 Permits report (7/1 - present)
11 Utility billing register - October and April
12 Park & Rec. transaction detail report (7/1 - present) 13 Bank statements for current fiscal year
14 Deposit log for current fiscal year
15 Monthy reporting package and GL details - (7/1 - 6/30) 16 Chart of Accounts, in excel
17 Preliminary trial balance showing current year vs. prior year and budget to actual of current year 18 Preliminary detail general ledger, in excel or pdf
19 Final trial balance, in excel
21 Final detail general ledger, in excel or pdf
21 Gann/Appropriations Limit
22 All bank account statements and reconciliations - July 2022 and June 2023 23 All investments and reconciliations - June 30, 2023
24 Investment report with FMV - June 30, 2023 and support docs. 25 Cash held with fiscal agent statements, if applicable 26 LAIF information and statements, if applicable
27 Cash receipts for periods subsequent to year end
28 Accounts receivable list at year end per fund and supporting docs. 29 Utility billing accural schedule
30 AR aging report - 6/30/2023
31 Inventory valuation report 6/30/2023- for all locations 32 Loan/notes receivable documents
33 Lead schedule of prepaid costs and other assets with supporting documentation 34 Lead schedule of changes in capital assets and accumulated depreciation - by type 35 Combining schedules of changes in capital assets and accumulated depreciation - by type (land, CIP, WIP, building, etc.) with reconciliations to capital outlay and other supporting detail for additions and deletions
36 Capital Asset Disposals Schedule and its backups (invoices and cancelled checks) 37 Capital Asset Depreciation schedule
38 Check registers for all accounts for subsequent period (July - Sept) 39 Accounts payable list at fiscal year end per fund
40 Supporting schedule of retentions payable per fund
41 Payroll accrual calculations at fiscal year end
42 Supporting schedule of accrued payroll and benefits
43 Supporting schedule of unearned revenue at fiscal year end 44 Supporting schedule of deposits payable at fiscal year end 45 Supporting schedule of miscellaneous liabilities
46 New bond/lease/loans documents
47 Bonds Payable schedule at fiscal year end
48 Premium/discount amortization schedules
49 Supporting schedule of interest payable
50 Supporting schedule of claims payable
51 Capital lease schedule at fiscal year end
52 GASB 68 Valuation Report - 6/30/2022 and related census data 53 GASB 75 Valuation Report - 6/30/2022 and related census data 54 Census data testing done by the City
55 Compensated absences at year end with year end wage calculation broken out by fund 56 Schedule of advances to/from other funds, with corresponding agreements between the funds 57 Schedule of due to/from other funds
58 Schedule of transfers in/out to/from other funds
59 Schedule of Federal Expenditures
Packet Pg. 714 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

Required Forms
Packet Pg. 715 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

Packet Pg. 716 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit

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Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Moss Adams | Fee Proposal for City of Redding 1

AUDIT SERVICES FOR CITY OF REDDING
PROPOSAL FOR SCHEDULE NO. 5308
Fee Proposal
Packet Pg. 728 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Moss Adams | Fee Proposal for City of Redding 2
D. Audit Fees
For our clients, it’s about more than the dollars you pay at the end of the day; it’s about value. Consider both the tangible and intangible benefits of working with us. You’ll get solid and timely deliverables. But more than that, the experience you’ll have working with forward-thinking, industry-specialized professionals who work side by side with you to explore new possibilities is where you’ll see the value.

Invest in your future prosperity and experience a different style of service with us.

Service Description 2023 2024 2025 2026 2027 2028
Financial statement audit of
the City, for the year ending
June 30
$43,500 $45,675 $47,959 $50,357 $52,875 $55,518
Single audit (three programs)* $10,200 $10,710 $11,246 $11,808 $12,398 $13,018 Financial statement audit of
the City of Redding, Redding
Area Bus Authority, for the
year ending June 30
$8,850 $9,292 $9,756 $10,244 $10,757 $11,295
Financial statement audit of
the Housing Authority of City
of Redding, for the year
ending June 30
$13,500 $14,175 $14,884 $15,628 $16,409 $17,230
Passenger facility charge audit $1,750 $1,838 $1,929 $2,026 $2,127 $2,233 GANN Appropriations Limit $1,000 $1,050 $1,103 $1,158 $1,216 $1,276 Newsletters, seminars, and
webinars
Retention of working papers
Attendance at audit committee
meetings
Management letter
Communication of internal
control matters
Included
Estimated expenses (not
included in total) Not to exceed $2,500
Consulting, as needed** Hourly rates
Total $78,800 $82,740 $86,877 $91,221 $95,782 $100,570
*Our fee estimate for the single audit is based on the assumption that you’ll have three major programs for fiscal year ended June 30, 2023, and that there may be more major programs in each subsequent fiscal year. If additional major programs are required to be audited, we estimate the additional cost at $6,000 to $9,000 per major program.
**To show our value, we’ll include $5,000 worth of complimentary consulting services. We’ll discuss your consulting needs and focus areas, such as accounting standards consulting, etc.

Packet Pg. 729 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Moss Adams | Fee Proposal for City of Redding 3
Staff Level Hours Hourly Rate
Partner 50 $515–$600
Senior Manager 20 $380–$500
Manager 80 $280–$380
Senior 100 $220–$275
Staff 200 $190–$225
Fee Details
Subject The Details
Client Acceptance
Procedures
The scope of work and fee quotes are subject to our client acceptance process, which: 1) verifies that all parties understand the specific services we’re being asked to perform; 2) ensures contract terms are acceptable to both parties and in agreement with professional standards; and 3) confirms we’ve staffed the engagement with individuals qualified with the necessary experience to fulfill our commitments to our prospective client. We’ll also need to complete our inquiries of your former auditor as required by our professional audit standards.

First-Year Costs We acknowledge that changing auditors can be disruptive to your staff’s routines, since a new audit team needs to spend time learning your systems. We’ll absorb all costs related to the transition.

Progress Billing Progress billings are based on hours and expenses completed at the time of billing. Bills are due upon receipt. We reserve the right to charge interest on accounts over 30 days past due.

Expenses Our proposed fee has a not-to-exceed amount for travel and will be billed as incurred up to the maximum. Direct travel expenses will be billed monthly as incurred.

Cost Overruns During the course of the audit, we’ll measure our progress against our planned budget. If situations arise that are significantly different than our expectations, we’ll bring them to your attention immediately and discuss various options before we proceed. We’ll meet weekly during the course of fieldwork with the appropriate parties to ensure there are open lines of communication between our organizations.

Future New Audit, Review,
and Accounting Standards
Our fee estimate discussed herein is based on accounting and professional standards that exist and are applicable as of the date of this proposal. To the extent that future rulemaking activities require modification to our audit approach, procedures, scope of work, etc., we’ll advise you of such changes and the impact on our fee proposal. If we’re unable to agree on the additional fees, if any, that may be required to implement any new accounting, auditing, and review standards that are required to be adopted and applied as part of our engagement, we reserve the right to withdraw from the engagement, regardless of the stage of completion.

Packet Pg. 730 Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit Assurance, tax, and consulting offered through Moss Adams LLP. ISO/IEC 27001 services offered through Cadence Assurance LLC, a Moss Adams company. Investment advisory services offered through Moss Adams Wealth Advisors LLC.

Moss Adams | Fee Proposal for City of Redding 4
Subject The Details
Routine Phone Calls and
Emails
Our policy is to not charge for short telephone calls seeking miscellaneous advice unless those consultations require significant additional work or research. If a matter requires further follow-up, we’ll discuss a fee estimate with you before incurring significant time.

Minor Research and
Consultation
If we’re requested to provide minor research or consultation service, we’ll estimate the number of hours necessary to provide the requested services. We’ll then provide a fee quote for your approval before commencing any work. Our fees for these services are generally at our standard billing rates.

Predecessor Auditors Our fee estimates are based on the assumption that the predecessor auditors will provide timely access to their audit working papers for the year ended June 30, 2022. Further, it’s assumed that the audit work performed by the predecessor auditor will be adequate to support beginning balances.

Audit Preparation Our proposed fees are based on the presumption that your books and records will be ready for audit and minimal audit adjustments will be required. If accounting assistance is required to reconcile accounts, we’ll discuss the issues with you, and additional fees will be billed separately, at our standard rates. Additionally, our fee quote assumes that we won’t identify any audit findings, including significant deficiencies or material weaknesses. If potential audit findings are identified, costs for investigating and reporting them will be in addition to our audit fees.

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Attachment: Previous Staff Report - Item 3(a) Audit Committee Report - November 7, 2022 (9A--Award Request for Proposal No. 5308, Audit ____________________________________________________________________________________________ Consulting and Professional Services Agreement Page 1
Rev. 6/15

CITY OF REDDING

CONSULTING AND PROFESSIONAL SERVICES CONTRACT

THIS CONTRACT is made at Redding, California, by and between the City of Redding (“City”), a municipal corporation, and CLA (CliftonLarsonAllen), LLP (“Auditor”) for the purpose of providing Professional Auditing Services.

WHEREAS, City does not have sufficient personnel to perform the services required herein thereby necessitating this Contract for personal services.

NOW, THEREFORE, the Parties covenant and agree, for good consideration hereby acknowledged, as follows:

SECTION 1. AUDITOR SERVICES
Subject to the terms and conditions set forth in this Contract, Consultant shall provide to City the services described in Exhibit A, and further describe in Exhibit C attached and incorporated herein. Auditor shall provide the services at the time, place and in the manner specified in Exhibit A and C.

Auditor shall not be compensated for services outside the scope of Exhibit A unless, prior to the commencement of such services: (a) Auditor notifies City and City agrees that such services outside the scope of Exhibit A are to be performed; (b) Auditor estimates the additional compensation required for the additional services, and (c) City, after notice, approves the additional services and amount of compensation therefore.

SECTION 2. COMPENSATION AND REIMBURSEMENT OF COSTS
A. City shall pay Auditor for services rendered pursuant to this Contract, at the times and in the manner set forth in Exhibit B, attached and incorporated herein, in a total amount not to exceed three hundred fifty thousand five hundred seventy-five dollars ($350,575). This sum includes a technology and support fee of five percent (5%) plus all out-of-pocket travel, lodging and incidental expenses incurred by Auditor that are reasonably associated with the provision of services under this Contract. The payments specified herein shall be the only payments to be made to Auditor for services rendered pursuant to this Contract.

B. Auditor shall submit monthly invoices to City for work completed to the date of the invoice. All invoices shall be itemized to reflect the employees performing the requested tasks, the billing rate for each employee and the hours worked.

C. All correct, complete and undisputed invoices sent by Auditor to City shall be paid within thirty (30) calendar days of receipt.

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SECTION 3. TERM AND TERMINATION
A. Auditor shall schedule its workflow to adhere to the time requirements outlined in the Request for Proposal for Professional Auditing Services, Schedule Number 5308, incorporated herein by this reference and as set forth in Exhibit B. Time is of the essence.

B. If Auditor fails to perform its duties to the satisfaction of City, or if Auditor fails to fulfill in a timely and professional manner its obligations under this Contract, then City shall have the right to terminate this Contract effective immediately upon City giving written notice thereof to Auditor.

C. Either Party may terminate this Contract without cause on thirty (30) calendar days’ written notice. Notwithstanding the preceding, if the term set forth in Section 3.A. of this Contract exceeds ninety (90) calendar days in duration, Auditor’s sole right to terminate shall be limited to termination for cause.

D. Auditor hereby acknowledges and agrees that the obligation of City to pay under this Contract is contingent upon the availability of City’s funds which are appropriated or allocated by the City Council. Should the funding for the project and/or work set forth herein not be appropriated or allocated by the City Council, City may terminate this Agreement by furnishing at least thirty (30) calendar days’ written notice of its intention to terminate. In the event of a termination pursuant to this subdivision, Auditor shall not be entitled to a remedy of acceleration of payments due over the term of this Agreement. The Parties acknowledge and agree that the power to terminate described herein is required by Article 16, Section 18, of the California Constitution, and that constitutional provision supersedes any law, rule, regulation or statute which conflicts with the provisions of this Section.

E. In no event shall the termination or expiration of this Contract be construed as a waiver of any right to seek remedies in law, equity or otherwise for a Party’s failure to perform each obligation required by this Contract.

SECTION 4. MISCELLANEOUS TERMS AND CONDITIONS OF CONTRACT A. City shall make its facilities accessible to Auditor as required for Auditor’s performance of its services under this Contract, and, upon request of Auditor, provide labor and safety equipment as required by Auditor for such access.

B. Pursuant to the City’s business license ordinance, Auditor shall obtain a City business license prior to commencing work.

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C. Auditor represents and warrants to City that it has all licenses, permits, qualifications and approvals of any nature whatsoever that are legally required for Auditor to practice its profession. Auditor represents and warrants to City that Auditor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Contract any licenses, permits and approvals that are legally required for Auditor to practice its profession.

D. Auditor shall, during the entire term of this Contract, be construed to be an independent contractor and nothing in this Contract is intended, nor shall it be construed, to create an employer/employee relationship, association, joint venture relationship, trust or partnership or to allow City to exercise discretion or control over the professional manner in which Auditor performs under this Contract. Any and all taxes imposed on Auditor’s income, imposed or assessed by reason of this Contract or its performance, including but not limited to sales or use taxes, shall be paid by Auditor. Auditor shall be responsible for any taxes or penalties assessed by reason of any claims that Auditor is an employee of City. Auditor shall not be eligible for coverage under City’s workers’ compensation insurance plan, benefits under the Public Employee Retirement System or be eligible for any other City benefit.

E. No provision of this Contract is intended to, or shall be for the benefit of, or construed to create rights in, or grant remedies to, any person or entity not a party hereto.

F. No portion of the work or services to be performed under this Contract shall be assigned, transferred, conveyed or subcontracted without the prior written approval of City. Auditor may use the services of independent contractors and subcontractors to perform a portion of its obligations under this Contract with the prior written approval of City. Independent contractors and subcontractors shall be provided with a copy of this Contract and Auditor shall have an affirmative duty to assure that said independent contractors and subcontractors comply with the same and agree to be bound by its terms. Auditor shall be the responsible party with respect to all actions of its independent contractors and subcontractors, and shall obtain such insurance and indemnity provisions from its contractors and subcontractors as City’s Risk Manager shall determine to be necessary.

G. Auditor, at such times and in such form as City may require, shall furnish City with such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Contract, the costs or obligations incurred or to be incurred in connection therewith, and any other matters covered by this Contract.

H. Auditor shall perform all services required pursuant to this Contract in accordance with the applicable standards for the services performed as described in Exhibit C I. All completed reports and other data or documents, or computer media including diskettes, and other materials provided or prepared by Auditor in accordance with this Contract are the property of City, and may be used by City. .

Packet Pg. 750 Attachment: Consulting and Professional Services Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services) ____________________________________________________________________________________________ Consulting and Professional Services Agreement Page 4
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J. Auditor, including its employees, agents, and subconsultants, shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Contract. Auditor shall comply with all requirements of the Political Reform Act (Government Code § 8100 et seq.) and other laws relating to conflicts of interest, including the following: 1) Auditor shall not make or participate in a decision made by City if it is reasonably foreseeable that the decision may have a material effect on Auditor’s economic interest, and 2) if required by the City Attorney, Auditor shall file financial disclosure forms with the City Clerk.

Packet Pg. 751 Attachment: Consulting and Professional Services Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services) ____________________________________________________________________________________________ Consulting and Professional Services Agreement Page 5
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SECTION 5. INSURANCE
A. Unless modified in writing by City’s Risk Manager, Auditor shall maintain the following noted insurance during the duration of the Contract:

Coverage Required Not Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers’ Compensation and Employers’ Liability X
Professional Liability (Errors and Omissions) 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 $1,000,000 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 $1,000,000 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' Liability 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 Auditor’s profession, against loss due to error or omission or malpractice in an amount not less than $1,000,000.

5. The City does not accept insurance certificates or endorsements with the wording “but only in the event of a named insured’s sole negligence” or any other 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, Packet Pg. 752 Attachment: Consulting and Professional Services Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services) ____________________________________________________________________________________________ Consulting and Professional Services Agreement Page 6
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employees, agents and volunteers; or the Auditor 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 Auditor; premises owned, leased or used by Auditor; or automobiles owned, leased, hired or borrowed by Auditor. The coverage shall contain no special limitations on the scope of protection afforded to City, its elected officials, officers, employees, agents and volunteers.

2. The insurance coverage of Auditor 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 Auditor’s insurance and shall not contribute with it.

3. Coverage shall state that the insurance of Auditor 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 Contract shall be endorsed to state that coverage shall not be canceled except after thirty (30) calendar days' prior written notice has been given to City. In addition, Auditor 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 to City.

E. Insurance is to be placed with insurers with a current A.M.Best’s rating of no less than A-VII.

F. Auditor shall designate the City of Redding as a Certificate Holder of the insurance.

Auditor 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 contracted services. City may withhold payments to Auditor if adequate certificates of insurance and endorsements required have not been provided, or not been provided in a timely manner.

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G. The requirements as to the types and limits of insurance coverage to be maintained by Auditor as required by Section 5 of this Contract, 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 Auditor pursuant to this Contract, including, without limitation, provisions concerning indemnification.

H. If any policy of insurance required by this Section is a “claims made” policy, pursuant to Code of Civil Procedure § 342 and Government Code § 945.6, Auditor shall keep said insurance in effect for a period of eighteen (18) months after the termination of this Contract.

I. If any damage, including death, personal injury or property damage, occurs in connection with the performance of this Contract, Auditor shall immediately notify City’s Risk Manager by telephone at (530) 225-4068. No later than three (3) calendar days after the event, Auditor 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 Auditor’s insurance company; and 4) a detailed description of the damage and whether any City property was involved.

SECTION 6. INDEMNIFICATION AND HOLD HARMLESS
A. Auditor shall indemnify protect, defend and hold harmless, City, its elected officials, officers, employees, and agents, and each and every one of them, from and against all actions, damages, costs, liability, claims, losses, penalties and expenses (including, but not limited to, reasonable attorney’s fees of the City Attorney or legal counsel retained by City, expert fees, litigation costs, and investigation costs) of every type and description to which any or all of them may be subjected by reason of the performance of the services required under this Contract by Auditor its officers, employees or agents in the performance of professional services under this Contract, except when liability arises due to the sole negligence, active negligence or misconduct of the City and its elected officials, officers, employees, and agents.

B. The Auditor’s obligation to defend, indemnify and hold harmless shall not be excused because of the Auditor’s inability to evaluate liability. The Auditor shall respond within thirty (30) calendar days to the tender of any claim for defense and indemnity by the City, unless this time has been extended in writing by the City. If the Auditor fails to accept or reject a tender of defense and indemnity in writing delivered to City within thirty (30) calendar days, in addition to any other remedy authorized by law, the City may withhold such funds the City reasonably considers necessary for its defense and indemnity until disposition has been made of the claim or until the Auditor accepts or rejects the tender of defense in writing delivered to the City, whichever occurs first. This subdivision shall not be construed to excuse the prompt and continued performance of the duties required of Auditor herein.

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C. The obligation to indemnify, protect, defend, and hold harmless set forth in this Section applies to all claims and liability regardless of whether any insurance policies are applicable. The policy limits of said insurance policies do not act as a limitation upon the amount of indemnification to be provided by Contractor.

SECTION 7. CONTRACT INTERPRETATION, VENUE AND ATTORNEY FEES A. This Contract shall be deemed to have been entered into in Redding, California. All questions regarding the validity, interpretation or performance of any of its terms or of any rights or obligations of the parties to this Contract shall be governed by California law. If any claim, at law or otherwise, is made by either party to this Contract, the prevailing party shall be entitled to its costs and reasonable attorneys' fees.

B. This document, including all exhibits, contains the entire agreement between the parties and supersedes whatever oral or written understanding each may have had prior to the execution of this Contract. This Contract shall not be altered, amended or modified except by a writing signed by City and Auditor. No verbal agreement or conversation with any official, officer, agent or employee of City, either before, during or after the execution of this Contract, shall affect or modify any of the terms or conditions contained in this Contract, nor shall any such verbal agreement or conversation entitle Auditor to any additional payment whatsoever under the terms of this Contract.

C. No covenant or condition to be performed by Auditor under this Contract can be waived except by the written consent of City. Forbearance or indulgence by City in any regard whatsoever shall not constitute a waiver of the covenant or condition in question. Until performance by Auditor of said covenant or condition is complete, City shall be entitled to invoke any remedy available to City under this Contract or by law or in equity despite said forbearance or indulgence.

D. If any portion of this Contract or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Contract shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

E. The headings in this Contract are inserted for convenience only and shall not constitute a part hereof. A waiver of any party of any provision or a breach of this Contract must be provided in writing, and shall not be construed as a waiver of any other provision or any succeeding breach of the same or any other provisions herein.

F. Each Party hereto declares and represents that in entering into this Contract, it has relied and is relying solely upon its own judgment, belief and knowledge of the nature, extent, effect and consequence relating thereto. Each Party further declares and represents that this Contract is made without reliance upon any statement or Packet Pg. 755 Attachment: Consulting and Professional Services Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services) ____________________________________________________________________________________________ Consulting and Professional Services Agreement Page 9
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representation not contained herein of any other Party or any representative, agent or attorney of the other Party. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms, and conditions of this Contract and that the decision of whether or not to seek the advice of counsel with respect to this Contract is a decision which is the sole responsibility of each of the Parties. Accordingly, no party shall be deemed to have been the drafter hereof, and the principle of law set forth in Civil Code § 1654 that contracts are construed against the drafter shall not apply.

G. Each of the Parties hereto hereby irrevocably waives any and all right to trial by jury in any action, proceeding, claim or counterclaim, whether in contract or tort, at law or in equity, arising out of or in any way related to this Agreement or the transactions contemplated hereby. Each Party further waives any right to consolidate any action which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived.

H. In the event of a conflict between the term and conditions of the body of this Contract and those of any exhibit or attachment hereto, the terms and conditions set forth in the body of this Contract proper shall prevail. In the event of a conflict between the terms and conditions of any two or more exhibits or attachments hereto, those prepared by City shall prevail over those prepared by Auditor.

SECTION 8. SURVIVAL
The provisions set forth in Sections 3 through 7, inclusive, of this Contract shall survive termination of the Contract.

SECTION 9. COMPLIANCE WITH LAWS - NONDISCRIMINATION
A. Auditor shall comply with all applicable laws, ordinances and codes of federal, state and local governments.

B. In the performance of this Contract, Auditor shall not discriminate against any employee or applicant for employment because of race, color, ancestry, national origin, religious creed, sex, sexual orientation, disability, age, marital status, political affiliation, or membership or nonmembership in any organization. Auditor shall take affirmative action to ensure applicants are employed and that employees are treated during their employment without regard to their race, color, ancestry, national origin, religious creed, sex, sexual orientation, disability, age, marital status, political affiliation, or membership or nonmembership in any organization. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training.

SECTION 10. REPRESENTATIVES
Packet Pg. 756 Attachment: Consulting and Professional Services Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services) ____________________________________________________________________________________________ Consulting and Professional Services Agreement Page 10
Rev. 6/15
A. City’s representative for this Contract is Greg Robinett, telephone number (530) 225- 4088, fax number (530) 225-4324 and email [email protected]. All of Auditor’s questions pertaining to this Contract shall be referred to the above-named person, or to the representative's designee.

B. Auditor’s representative for this Contract is Richard Gonzalez, telephone number (916) 677-5760 and email [email protected]. All of City’s questions pertaining to this Contract shall be referred to the above-named person.

C. The representatives set forth herein shall have authority to give all notices required herein.

SECTION 11. NOTICES
A. All notices, requests, demands and other communications hereunder shall be deemed given only if in writing signed by an authorized representative of the sender (may be other than the representatives referred to in Section 10) and delivered by facsimile, with a hard copy mailed first class, postage prepaid; or when sent by a courier or an express service guaranteeing overnight delivery to the receiving party, addressed to the respective parties as follows:

To City:

City of Redding
Attn: Greg Robinett
Finance Officer
777 Cypress Ave.

Redding, CA 96001
To Auditor:

CLA (CliftonLarsonAllen), LLP
Attn: Charles Jones
General Counsel, Principal
220 South Sixth Street, Suite 300
Minneapolis, MN 55402
B. Either party may change its address for the purposes of this paragraph by giving written notice of such change to the other party in the manner provided in this Section.

C. Notice shall be deemed effective upon: 1) personal service; 2) two calendar days after mailing or transmission by facsimile, whichever is earlier.

SECTION 12. AUTHORITY TO CONTRACT
A. Each of the undersigned signatories hereby represents and warrants that they are authorized to execute this Contract on behalf of the respective parties to this Contract; that they have full right, power and lawful authority to undertake all obligations as provided in this Contract; and that the execution, performance and delivery of this Contract by said signatories has been fully authorized by all requisite actions on the part of the respective parties to this Contract.

Packet Pg. 757 Attachment: Consulting and Professional Services Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services) ____________________________________________________________________________________________ Consulting and Professional Services Agreement Page 11
Rev. 6/15
B. When the Mayor is signatory to this Contract, the City Manager and/or the Department Director having direct responsibility for managing the services provided herein shall have authority to execute any amendment to this Contract which does not increase the amount of compensation allowable to Auditor or otherwise substantially change the scope of the services provided herein.

SECTION 13. DATE OF CONTRACT
The date of this Contract shall be the date it is signed by City.

Packet Pg. 758 Attachment: Consulting and Professional Services Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services) ____________________________________________________________________________________________ Consulting and Professional Services Agreement Page 12
Rev. 6/15
IN WITNESS WHEREOF, City and Auditor have executed this Contract on the days and year set forth below:

CITY OF REDDING,
A Municipal Corporation
Dated: ___________, 20____ __________________________________ By:

ATTEST: APPROVED AS TO FORM:

BARRY E. DeWALT
City Attorney
__________________________________ ___________________________________ PAMELA MIZE, City Clerk By:

RICHARD GONZALEZ, CPA
Auditor
Dated: ___________, 20____
By:

Tax ID No.:___41-0746749____________

Packet Pg. 759 Attachment: Consulting and Professional Services Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services)

EXHIBIT B
I. TERM AND TERMINATION
A. Term

1. This agreement shall commence when executed by the Mayor of the City, or designee, and by the Auditor, and shall continue until the delivery of the final reports for the fiscal year ending June 30, 2026, to the Finance Director of City.

2. The City shall reserve the right to extend the term of this agreement for two additional two-year terms.

3. This Agreement may be cancelled without cause by City or Auditor upon thirty (30) calendar days advance notice to the City or Auditor, as applicable. Auditor shall be paid for any satisfactory work completed as of the time of the notice of cancellation is received by Auditor.

B. Termination of Contract for Cause

1. If, through any cause, Auditor or the City shall fail to fulfill its obligation under this Agreement in a timely and proper manner, or if Auditor or City shall violate any of the covenants, agreements or stipulations of this Agreement, Auditor or City shall thereupon have the right to terminate this Agreement by giving written notice to Auditor of such termination, and specifying the effective date thereof, at least five (5) days before the effective date of such termination. In such event, all finished or unfinished statements prepared by Auditor under this agreement shall, at the option of City, become property of City, and Auditor shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder.

2. Notwithstanding the above, Auditor shall not be relieved of liability to City for damages sustained by City by virtue of any breach of this Agreement by Auditor, and City may withhold any payments to Auditor for the purpose of set-off until such time as the exact amount of damages due City for Auditor is determined.

Packet Pg. 760 Attachment: Exihibit B to Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services)

II. COMPENSATION AND BILLING

A. Compensation

1.Compensation for the work to be performed shall be determined based on actual hours worked multiplied by Auditor’s hourly rates for each staff classification as set forth in the Proposal to Perform Professional Auditing Services for the City of Redding for the fiscal years ending June 30, 2023 – 2026. Such compensation shall not exceed the following amounts for each fiscal year:

Fiscal Year Ending
June 30, 2023 84,475 $
June 30, 2024 86,900 $
June 30, 2025 88,700 $
June 30, 2026 90,500 $
Total 350,575 $

The auditors have quoted the following compensation for the first additional consecutive two-year terms, should the City decide to extend the term of the contract:

The auditors have quoted the following compensation for the second consecutive two-year terms, should the City decide to extend the term of the contract:

In the event that extra work is authorized by City, the hourly rates for the individual performing said work shall be those quoted in the “Proposal to Perform Professional Auditing Services for the City of Redding for the Fiscal years ending June 30, 2023 - 2026” submitted by the Auditor.

Auditor reserves the right to negotiate a revised maximum fee should any government agency or professional organization materially change an entity’s auditing or reporting requirements after this agreement or any amendments thereto Fiscal Year Ending:

June 30, 2027 92,300 $
June 30, 2028 94,100 $
Total 186,400 $
Fiscal Year Ending:

June 30, 2029 96,100 $
June 30, 2030 97,900 $
Total 194,000 $
Packet Pg. 761 Attachment: Exihibit B to Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services) have been signed by both parties. The above fees do not include additional fees for new standards that need to be implemented and any out of scope work that may be necessary.

B. Billing

1. Auditor may request monthly progress payments. Such payments shall be for work actually performed, and shall be based on Auditor’s hourly rates for each staff classification. In no event shall the combination of all progress payments exceed eighty percent (80%) of the annual total compensation.

2. Final payment will be made after successful completion of all services and reports to the satisfaction of the Finance Director of the City.

3. Progress payments and final billings shall be in a form satisfactory to identify the audit costs attributable to each entity, grant, or fund, which will be needed to assist in charging each organization for their share of the audit costs. Such billings will reflect the category of tasks.

Packet Pg. 762 Attachment: Exihibit B to Contract with CLA, LLP (9A--Award Request for Proposal No. 5308, Audit Services)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve the Airport Strategic Plan for Redding Regional Airport; and find the action statutorily exempt from review under the California Environmental Quality Act Guidelines, per Section 15262 – Feasibility and Planning Studies.

Fiscal Impact
There is no fiscal impact with the approval of the Airport Strategic Plan (Plan). If accepted, the cost estimates for infrastructure repairs and improvements identified in the Plan will be used for reference for future capital improvement projects, and the Airport Division budget will rely on the plan and its ongoing updates. The cost to complete the Plan effort was $225,000, with $199,768 for consulting services provided by Mead & Hunt, Inc. and $25,232 in staff time.

Alternative Action
The City Council (Council) could choose to reject the Plan and provide alternative direction to staff.

Background/Analysis
On December 21, 2021, the Council adopted a resolution appropriating funds for the Plan. The recommendation to develop the Plan followed a steady increase in passenger air travel above and beyond the regular three-times daily flight to San Francisco International Airport. As a result of that increase, the passenger space in the Redding Regional Airport (RDD) terminal has become strained during times of overlapping flights. Staff felt it was necessary to develop a strategic plan for RDD that will focus on economic development and needed facility and capital improvements, which can include both revenue-generating and non-revenue-generating projects or programs, along with a plan for financial resiliency.

MEETING DATE: November 15, 2022
ITEM NO. 9.2(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.2(c)--Consider approval of the Airport Strategic Plan for the Redding Regional Airport.

Steve Bade, Assistant City
Manager
Packet Pg. 763
Report to Redding City Council November 9, 2022
Re: 9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport Page 2 The Plan took shape over the duration of eight months and includes input from the Strategic Plan Advisory Group that included: City Airport Division and Public Works Department staff, the Director of Shasta County Department of Resource Management, the Redding Chamber of Commerce, airport tenants, and community members. The critical issues were developed with feedback from the Strategic Plan Advisory Group based on the strengths, weaknesses, opportunities, and threats (SWOT) aimed at categories within RDD’s control (categorized as strengths and weaknesses) and those that are outside of RDD’s control (categorized as opportunities and threats).

Maintaining the quality and upkeep of RDD’s infrastructure and diversifying revenue generation for the airport are the most critical components of RDD’s vision for the next five years. The goals that have been developed through the Plan process, and listed in detail in the attached Airport Strategic Plan, are interrelated and rely on components of each goal category to support overall development. The goals are intended to support the airport’s long-term vision to be financially self-sustainable. The goal categories that support the airport’s long-term vision include: infrastructure improvements, revenue generation, staffing & management, and air service and competition; it is important to note that adequate staffing, developable land, and air service expansion all play a role in supporting economic development.

To meet realistic funding expectations, it may be necessary to weigh each listed goal in a thoughtful and economical manner through selective implementation. Knowing the full scope of development opportunities enables RDD to capitalize on opportunities, respond to financial realities, and select projects that are in accord with the overall strategic vision. The Plan will guide development and decision making, and allow RDD to achieve its economic goals by continuing to serve as an important economic engine and the airport of choice for Northern California.

The Plan also includes an Airport Economic Contribution Assessment to provide details on the economic impacts attributed to RDD. This assessment has a standalone document containing more data.

Environmental Review
Staff has determined that the action is Statutorily Exempt from review under the California Environmental Quality Act (CEQA) Guidelines, per Section 15262 - Feasibility and Planning Studies. The exemption applies to projects involving only feasibility or planning for possible future actions. The Plan identifies potential future actions or projects; however, the Plan will not have a legally binding effect on future activities. Implementation of any future project or action would be subject to the requirements of CEQA. Approval of the Plan would not result in environmental disturbance and the action has no potential to have a significant effect on the environment.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Packet Pg. 764
Report to Redding City Council November 9, 2022
Re: 9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport Page 3 Attachments
Draft Redding Municipal Airport Strategic Plan
RDD Economic Contribution Assessment - Final
NOE Redding Municipal Airport 2022 Strategic Plan
Dec 21, 2021 9.11(f) Staff Report
Packet Pg. 765
DRAFT

REDDING MUNICIPAL AIRPORT

STRATEGIC PLAN
Packet Pg. 766 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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CONTENTS
Executive Summary ..................................................................................................... iii Plan Purpose and Process........................................................................................................................iii Plan Goals .............................................................................................................................................iii Plan Timeline .........................................................................................................................................iii Conclusion...................................................................................................................................................v RDD Strategic Plan........................................................................................................ 1 Introduction .................................................................................................................................................1 Plan Process................................................................................................................................................1 Airport Region and Role.........................................................................................................................2 Mission, Vision, and Positioning ............................................................................................................3 Peer Benchmarking ...............................................................................................................................4 SWOT Analysis......................................................................................................................................8 Critical Issues Inventory.........................................................................................................................9 Economic Contribution Assessment ......................................................................................................11 Airport Name Update ................................................................................................................................13 Goal Setting Process ................................................................................................................................13 Strategic Plan Goals .................................................................................................................................14 Action Plan Process.............................................................................................................................14 Infrastructure Goals .............................................................................................................................16 Revenue Generation Goals .................................................................................................................17 Staffing and Management Goals .........................................................................................................18 Air Service and Competition Goals......................................................................................................19 Developable Areas...............................................................................................................................20 Land Use Compatibility Plan Update ......................................................................................................23 Shasta County Airports ........................................................................................................................23 Summary....................................................................................................................................................24 Acronyms and Definitions........................................................................................................................31 Packet Pg. 767 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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Tables
Table 1: SPAG Meeting Schedule ..................................................................................................1 Table 2: Average Cost per Enplaned Passenger............................................................................5 Table 3: Average Non-Aeronautical Revenue per Acre..................................................................6 Table 4: Average Enplanements per Average FTEs (2017-2020)..................................................7 Table 5: Non-Airline Derived Revenue............................................................................................7 Table 6: SWOT Analysis Results – Strengths and Weaknesses....................................................8 Table 7: SWOT Analysis Results – Opportunities and Threats ......................................................9 Table 8: Airport Name Survey Update ..........................................................................................13 Table 9: RDD Strategic Plan Goals...............................................................................................15 Table 10: Infrastructure Goals and Action Plan ..............................................................................25 Table 11: Revenue Generation Goals and Action Plan ..................................................................26 Table 12: Staffing and Management Goals and Action Items.........................................................27 Table 13: Air Service and Competition Goals and Action Plan.......................................................29 Figures
Figure 0: RDD 2022 Strategic Plan Goals....................................................................................... iv Figure 1: Airport Region and Role....................................................................................................3 Figure 2: Peer Benchmarking Airports .............................................................................................5 Figure 3: RDD Economic Impact 2019 and 2021 Statistics ...........................................................11 Figure 4: RDD Economic Impact Modeling Process ......................................................................12 Figure 5: Developable Areas..........................................................................................................21 Packet Pg. 768 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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EXECUTIVE SUMMARY

PLAN PURPOSE AND PROCESS
The City of Redding prepared the 2022 Strategic Plan (the Plan) to develop a better understanding of the key challenges, opportunities, and constraints facing Redding Municipal Airport (RDD). The planning process gave the Airport the opportunity to develop mission, vision, and positioning statements; to form the foundation of the critical issue goals; and to develop a roadmap to achieve these goals. The overarching theme of the Strategic Plan is “Economic Development,” and the focus areas are Infrastructure, Revenue Generation, Staffing and Management, and Air Service and Competition. The Plan focuses on the following objectives:
 Proactively working with the City of Redding to establish a financial reserve for the Airport. Maintain a fee and rental structure that makes the airport financially self-sustaining as possible under the circumstances at RDD. Build a financial reserve to withstand periods of downturn.  Positioning RDD for financial self-sustainability by taking the necessary steps to create a proactive plan for diversifying revenue generation,
 Maintaining the quality and upkeep of RDD’s infrastructure,  Demonstrating the economic contribution of RDD to the regional community,  Evaluating Air Service opportunities and competition,  Prompting an update of the Airport Land Use Compatibility Plan to align with existing and planned conditions, and
 Rebranding RDD as the regional preferred airport for Northstate, California.

Plan Goals
The Plan is a roadmap to achieve the goals developed by the Stakeholder Planning Advisory Group (SPAG). Economic Development has been identified as the core focus to ensure RDD’s future success.

The timing of goal execution is dependent on RDD and The City of Redding’s ability to work on achieving success with available resources. The goals are summarized in Chapter 1 - Table 1: Figure 0:

Plan Timeline
The Plan roadmap focuses on what can be achieved over the next five years based on staffing, available revenue, and required coordination with key tenants and stakeholders (such as the United States Forest Service and Federal Aviation Administration). Several goals in the Strategic Plan are dependent on the outcome of the RDD Airport Master Plan. The Strategic Plan is written to provide flexibility to RDD regardless of what key infrastructure plans come out of the Master Plan.

Each goal is important to RDD; however, progress on some goals will need to wait so that Airport staff can continue to focus on their core mission of running a safe and efficient airport. Infrastructure has been recognized as the most critical issue at RDD and the main contributor for the future growth of the Airport.

Packet Pg. 769 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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RDD is an essential resource for the Northstate region, and these solutions to critical issues will keep the Airport in a position to drive and support regional economic growth.

Figure 0: RDD 2022 Strategic Plan Goals Infrastructure
1 Maintain pavements, utilities, and electrical systems in good condition and develop the airfield in a way that maximizes available Airport Capital Improvement Program (ACIP) funding.
2 Add or expand facilities to help the Airport keep pace with community growth and maintain its role as a regional economic engine.
3 Obtain Federal Aviation Administration (FAA) acceptance of the Airport Master Plan and approval of an Airport Layout Plan (ALP).

Revenue Generation
1 Provide a higher percentage of leasable space inside of new passenger terminal to improve customer experience and increase revenue.
2 Increase revenue from non-airline sources by ten percent to be less reliant on airlinederived revenues and more in line with other peer airports. 3 Lease up to 223 acres of non-aeronautical property to further diversify revenue sources. 4 Maintain a fee and rental structure that makes the airport as financially self-sustaining as possible under the circumstances at RDD. Build a financial reserve to withstand periods of downturn.

Staffing and Management
1 Maintain an appropriate level of staffing to be responsive to tenant needs and to capitalize on growth opportunities while providing a high level of customer service. 2 Develop a training program and advancement plan for employees to boost staff retention and recruitment.
3 Create a policy management plan to keep airport staff informed about most recent trends and development of laws, regulations, and policies that affect airport operations and development.
4 Update Airport Minimum Standards, rules, and regulations to ensure that an adequate level of safe and efficient services is available to the public. 5 Update Redding Municipal and Benton Field Airport’s Airport Land Use Compatibility Plans to comply with guidance set forth by the Caltrans Division of Aeronautics.

Air Service and
Competition
1 Increase True Market passenger retention to 35 percent (an 8 percent increase Q4 2021) in the next five years by providing a high level of customer service, clean and efficient terminal facilities, and a competitive airline cost per enplanement. 2 Develop a unique RDD brand and improve communication strategies through an effective marketing plan.
3 Maintain and provide facilities that make RDD an attractive option in the Northstate for large general aviation aircraft, government operators, and their civilian contractors. 4 Develop an airport aesthetic that has a positive reflection of Redding Municipal Airport and the region.

Packet Pg. 770 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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CONCLUSION
Maintaining the quality and upkeep of RDD’s infrastructure and diversifying revenue generation for the airport are the most critical components of RDD’s vision for the next five years. The goals that have been developed through the Plan process are interrelated and rely on components of each goal category to support overall development. Adequate staffing, developable land, and air service expansion all play a role to support economic development. The goals developed support the airports long-term vision to be financially self-sustainable.

RDD wishes to be the preferred airport for the Northstate by connecting their travelers with a high quality and convenient travel experience. RDD’s positioning is supported by its mission and vision, which serve as the base framework for performance standards for those working for RDD and act as guides for decision making for employees at all levels. The City of Redding approving and providing RDD with a new name will offer a rebranding opportunity and marketing strategy for RDD to be seen as the regional airport of choice for Northern California.

Infrastructure improvements that will be addressed in the Airport Master Plan will force careful consideration of air service development; however, future growth will support continued expansion of the offerings available at RDD. Economic development and air service are highly interrelated, and RDD has several regional partners in this effort. A strong financial position will allow the RDD to invest in the improvements and innovations that will keep RDD as the essential airport for public safety.

Packet Pg. 771 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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Packet Pg. 772 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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1 RDD STRATEGIC PLAN

INTRODUCTION
The City of Redding (City) prepared this Strategic Plan (the Plan) for the Redding Municipal Airport (RDD or the Airport). The Plan’s purpose is to communicate RDD’s goals, the actions needed to achieve those goals, and all other critical elements developed during the process. The City also operates and maintains Benton Airpark (O85); however, O85 will not be included in the Plan. The Plan focuses on the following objectives:
 Positioning RDD for financial self-sustainability by taking the necessary steps to create a proactive plan for diversifying revenue generation,
 Maintaining the quality and upkeep of RDD’s infrastructure,  Demonstrating the economic contribution of RDD to the regional community,  Evaluating Air Service opportunities and competition,  Prompting an update of the Airport Land Use Compatibility Plan to align with existing and planned conditions, and
 Rebranding RDD as the regional preferred airport for Northstate, California.

PLAN PROCESS
The Plan took shape over the duration of eight months and includes input from the Strategic Plan Advisory Group (SPAG), which includes members from Airport Management and staff, the City of Redding, the County of Shasta, the City of Redding Chamber of Commerce, airport tenants, and airport advocates. The SPAG members provided input and guided decision-making throughout Plan development and participated in four meetings at key decision points. SPAG input is valuable as the members use the Airport for business, pleasure, or otherwise and have a deep understanding of the Airport, its role in the community, and its opportunities in the future. The SPAG meeting schedule and topics are shown in Table 1.

Table 1: SPAG Meeting Schedule
Meeting Date Topics
1 January Kickoff, SWOT, Critical Issues Inventory
2 March Mission and Vision, Goal Definition
3 April Prioritize Goals and Action Plan
4 June Final Strategic Plan
Stakeholder Group
SPAG Membership
Airport Management and Staff
City of Redding
County of Shasta
City of Redding Chamber of Commerce
Economic Development Corporation
United States Forest Service (USFS)
SkyWest Airlines
Redding Jet Center
Aircraft Owners and Pilots Association (AOPA)
Airport Support Network (ASN) Volunteer
Packet Pg. 773 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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2 Airport Region and Role
The City of Redding is in Shasta County at the northern end of the Sacramento Valley. With nearly 300 days of sunshine a year and several state and national recreation areas, Redding is an attractive destination for outdoor activities. Shasta County has approximately 190,000 residents with 95,000 of them in the City.

Redding plays a vital role in the community and the regional economy as a conduit for tourism, trade, and commerce.

Tourism and Business
The City of Redding is in a desirable geographic location with the Sacramento River, Shasta Lake, and Mount Shasta all close at hand. The Sacramento River, the largest river in California, runs from Redding to San Francisco. Shasta Lake, located ten miles north of Redding, is a reservoir created by Shasta Dam that supports activities such as boating, camping, and fishing. Mount Shasta is located 60 miles north of Redding and is a prominent landmark in the region for outdoor recreation.

Redding is a regional hub for education services, retail, and government employment.  Shasta County and the City of Redding are the largest employers with over 2,800 employees.  Mercy Medical and Shasta Regional Medical Center (General Medical) have over 2,600 employees.  Shasta College, the local junior college, has 675 employees.

Airport Role
The City owns and operates RDD, which is located eight miles south of the city center and is classified as a “Primary Non-Hub” airport in the Federal Aviation Administration (FAA) National Plan of Integrated Airport Systems (NPIAS). RDD supports commercial passenger and cargo airlines, general aviation (GA), law enforcement, and medical airlift services. Other key tenants include fixed base operator (FBO) Redding Jet Center, which provides fueling, maintenance, and pilot services, and the U.S. Forest Service, which plays a critical role in wildfire suppression and response.

Airlines serving RDD include United Airlines to Los Angeles (LAX) and San Francisco (SFO); Alaska Airlines to Seattle (SEA); and Avelo Airlines to Burbank (BUR) and Las Vegas (LAS). RDD is currently looking to expand service to Denver (DEN). Figure 1 illustrates RDD’s airlines, destinations, and airport characteristics.

Packet Pg. 774 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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3 Figure 1: Airport Region and Role
Source: Mead & Hunt, Inc. 2022
Mission, Vision, and Positioning
The mission and vision statements encapsulate RDD’s purposes, goals, and values. The positioning statement describes how RDD wants to be seen by its customers and competitors. The development process for these statements gives stakeholders the opportunity to provide input on concepts for RDD.

Example statements were provided based on feedback from SPAG Meeting #1. Ideas and input generated during SPAG Meeting #2 created a base for RDD’s mission and vision. The SPAG was sent a survey that provided updated statements. The SPAG was able to provide their feedback on the mission and vision statements. For the positioning statement, four options were provided in the survey and the SPAG voted on the preferred positioning statement. Final feedback was provided during SPAG Meeting #3, and the final mission and vision statements are below as well as the preferred positioning statement.

Mission
A mission statement defines RDD’s business role, its objectives, and its approach to reach those objectives; it establishes the road map to determine where RDD’s efforts to achieve their vision should be focused.

Internally, the mission statement will guide management on a strategic approach to the issues they face and inspire employees to work more productively by focusing on common goals. “Redding Regional Airport serves the communities of
the Northstate efficiently and safely, connecting
people, services, and organizations to the places they
want to go.”
Packet Pg. 775 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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4 Vision
A vision statement describes the desired future position of the Airport. The vision captures what RDD looks like and guides how it functions five to ten years into the future. Internally, the vision statement will help establish a framework for ethical behavior, guide employee decision making, and help define performance standards.
“Redding Regional Airport aspires to be a regional leader that provides economic vitality, public safety, and
resource protection. We will do this by operating
proactively, promoting sustainable growth, and remaining engaged in the developing world of aviation.”
Positioning
RDD’s positioning establishes a clear objective for the reputation that it wishes to achieve. Positioning is part of an on-going process to attract users and tenants, develop new services, manage community relations, and align the airport competitively.
“Redding Municipal Airport,
connecting Northstate to the world through a
high-quality and convenient travel experience.”
Peer Benchmarking
The following analysis frames the existing conditions at RDD in the context of other peer airports across the country. Peer airports are based on similar size, finances, runways, and proximity to medium or large hub airports; Figure 2 illustrates the airports most appropriate to use for peer analysis.

Packet Pg. 776 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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5 Figure 2: Peer Benchmarking Airports
Source: Mead & Hunt, Inc. 2022
Average Cost per Enplaned Passenger
The cost per enplaned passenger (CPE) is the average cost, standardized per enplanement passenger, that the airlines pay to operate at RDD. CPE is based on landing fees, aircraft parking, terminal lease, and utilities. A low CPE is more favorable for airlines, and it may attract more air service. The peer benchmarking analysis is shown in Table 2. RDD has a higher CPE than several of the peer airports, which is partially due to its reliance on airline-derived revenue. Diversifying revenue streams to incorporate more nonaeronautical funds can help lower CPE.

Table 2: Average Cost per Enplaned Passenger
Airport 2017 2018 2019 2020 Average Rank
SMX $ - $ 2.85 $ 0.99 $ 1.06 $ 1.23 1
STS $ 1.58 $ 1.54 $ 1.94 $ - $ 1.27 2
SCK $ 1.27 $ 1.40 $ 1.27 $ 1.58 $ 1.38 3
TYR $ 1.70 $ 1.68 $ 1.51 $ 1.93 $ 1.71 4
ACV $ 3.01 $ 2.22 $ 1.89 $ 4.10 $ 2.81 5
RDD $ 3.55 $ 4.10 $ 4.34 $ 5.32 $ 4.33 6
TWF $ 6.91 $ 5.41 $ 6.09 $ 9.06 $ 6.87 7
MFR $ 7.35 $ 8.58 $ 8.42 $ 9.47 $ 8.46 8
Average $ 3.50
Source: Federal Aviation Administration (FAA) CATS 2017- 2020 Database Recommendation: The Airport should investigate opportunities to attract more non-aeronautical revenue to the Airport. Revenue diversification can help lower reliance on airline fees, which in turn can lower CPE.

Packet Pg. 777 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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6 Non-Aeronautical Revenue per Acre
Non-aeronautical revenue per acre measures the revenue generated based on the amount of acreage an airport has that generates non-aeronautical revenues. Examples of non-aeronautical revenues include land and non-terminal facility leases, terminal retail, parking and ground transportation, and hotels. Table 3 shows that RDD ranks above the average property size at 1,584 acres, but it falls below the average revenue generated per acre compared to peer airports.

RDD’s property size allows for the opportunity to catch up with its peers and generate additional nonaeronautical revenue through expansion, future growth of facilities, and revenue diversification.

Opportunities to improve non-aeronautical revenue include leasing available property for development (e.g., airport-compatible businesses) and building Airport-owned, revenue-generating land uses (e.g., automobile parking facilities).

Table 3: Average Non-Aeronautical Revenue per Acre
Airport Average Non-Aero Revenue Acreage Revenue per Acre Rank MFR $7,553,000 938 $8,100 1
STS $3,080,000 1,125 $2,700 2
SCK $2,111,000 1,552 $1,400 3
ACV $713,000 745 $1,000 4
TYR $972,000 1,200 $800 5
RDD $1,086,000 1,584 $700 6
SMX $352,000 2,516 $700 7
TWF $7,553,000 1,468 $200 8
Average 1,391 $1,950
Source: Federal Aviation Administration (FAA) CATS 2017- 2020 Database Numbers are rounded to nearest thousand (revenue) and nearest hundred (revenue per acre).

Recommendation: It appears that there are opportunities for higher utilization of non-aeronautical properties. Long-term airfield planning decisions may affect how much non-aeronautical property is available for development.

Enplanements per Full-time Equivalent Employee
The average of enplanements per full-time equivalent (FTE) is a measure of airport staffing, standardized by how busy an airport is. As shown in Table 4 RDD has fewer FTEs for its level of passenger traffic than many of its peer airports. For RDD to continue to provide high-quality services, RDD will need to take on additional staff to meet current and future demand as enplanements have the potential to increase.

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7 Table 4: Average Enplanements per Average FTEs (2017-2020) Airport Average
Enplanements Average FTEs Average Enplanements/ Average FTEs Rank SMX 26,000 10 2,600 1
TWF 34,000 9 3,800 2
TYR 47,000 11 4,300 3
RDD 45,000 8 5,600 4
ACV 72,000 12 6,000 5
MFR 452,000 46 9,800 6
STS 172,000 13 13,200 7
SCK 93,000 3 31,000 8
Average 14 9,500
Source: Federal Aviation Administration (FAA) CATS 2017- 2020 Database Recommendation: Maintaining appropriate staffing levels is critical to implementing items developed in the Strategic Plan and maintaining the level of customer service and responsiveness that RDD staff are known for. As RDD adds more airline activity and the airline industry emerges from the COVID-19 pandemic, the ratio of enplanements per FTE will drift farther away from the peer group average.

Non-Airline Derived Revenue
Non-airline derived revenue is an assessment of the different revenue streams at the Airport based on what role scheduled passenger airline service plays in their success. It differs from “non-aeronautical revenue” because there are several categories that are classified by the FAA as non-aeronautical (e.g., automobile parking, terminal food and beverage sales, and rental car concessions), which would be considerably lower, or even non-existent, if there was no scheduled airline service. RDD generates 56 percent of its revenue from non-airline sources, the largest being “land and non-terminal facility leases” and “cargo and hangar rentals.” Table 5 illustrates the levels at which the peer airports generate non-airline derived revenue.

Table 5: Non-Airline Derived Revenue
Airport Non-Airline Derived
Revenue (NADR) Operating Revenue NADR as a Percent of Operating Revenue Rank SMX $2,742,000 $3,281,000 84% 1
SCK $2,402,000 $3,758,000 64% 2
RDD $1,084,000 $1,934,000 56% 3
STS $2,396,000 $5,825,000 41% 4
TWF $355,000 $901,800 39% 5
TYR $322,000 $1,237,000 26% 6
MFR $2,412,000 $12,709,000 19% 7
ACV $188,000 $1,798,000 10% 8
Average 42%
Source: Federal Aviation Administration (FAA) CATS 2017- 2020 Database Packet Pg. 779 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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8 Recommendation: Like other peer benchmark areas, there is opportunity for RDD to further diversify its revenue stream away from airline sources. It performs well relative to its peers in terms of overall percentage; however, there is room for improvement to get non-airline derived revenue closer to 60 to 70 percent.

Peer Bench Marking Analysis Summary
Peer benchmarking is useful to help identify where RDD can focus its efforts. Peer airport data can often serve as a useful resource when looking for strategies that can be adapted and employed. A summary of the recommendations in from the analysis is below.
 Diversifying revenue generation to be less reliant on airline-derived revenues can help lower CPE, which may attract additional airline service.
 Developing non-aeronautical properties, particularly those that are not affected by the airline business cycle, will give the airport sustainable financial support as the industry ebbs and flows.  Strategic initiatives and growth in airport activity will require airport staff time and attention. The Airport should consider adding employees to keep pace with demand and make sure that it can respond to the needs of its users.

SWOT Analysis
The SWOT analysis focused on what changes and improvements to RDD’s management, staffing, marketing, budgeting, and infrastructure are necessary to build upon strengths, address weaknesses, capitalize on opportunities, and mitigate threats. The SWOT analysis looked at categories that are within RDD’s control (categorized as strengths and weaknesses) and those that are outside of RDD’s control (categorized as opportunities and threats). Table 6 and Table 7 display the SWOT results from SPAG Meeting #1.

Table 6: SWOT Analysis Results – Strengths and Weaknesses Strengths Weakness
 High quality staff
 Tenant communications
 Supportive City leadership
 Property available for development
 Little to no community opposition
(noise, emissions, overflight, etc.)
 Condition of infrastructure (pavements and buildings)  Terminal is undersized
 TSA Checkpoint, checkpoint needs an additional line to accommodate existing passengers.
 Runway is long enough for existing users, could be longer to enable future growth
 Can be more difficult to build on airport compared to elsewhere in town (FAA restrictions, need to lease versus own outright, etc.)
 Airport doesn’t market itself much beyond commercial
service
 Crosswind runway is considered undersized, and it is not eligible for FAA funding.
 Airport Land Use Compatibility Plan is outdated.
 Tax revenues collected on Airport do not come back to Airport
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9 Table 7: SWOT Analysis Results – Opportunities and Threats Opportunities Threats
 Develop east-bound air service (Denver
slated to start soon)
 Burbank connection has brought
attention of film industry, more
opportunities there
 Community is growing quickly
 Develop airfield
– New parallel runway to replace
crosswind
– New or expanded terminal, auto
parking
– More hangars
 Diversify revenue stream, reduce
reliance on passenger airline related
income
 Sacramento is approximately a two-and-a-half-hour drive time.
– Southwest Airlines out of SMF draws a lot of
catchment area passengers
 California Surplus Land Act could encourage residential encroachment, environmental justice concerns
 Difficult to attract and maintain staff with right skillsets  Air service is fickle – can be taken away just as quickly as it has arrived.
 Regulations are always changing – future regulations
could make it harder to attract investment, maintain
tenants, keep airport operating as it does.
– Per- and Polyfluoroalkyl Substances (PFAS) is an
example
The information collected through the SPAG meeting and SWOT analysis is used to inventory the critical issues and develop the goals and action plan. This information forms the basis for evaluating the progress and effectiveness of action items that come from the Plan.

Critical Issues Inventory
The critical issues were developed based on the SWOT results and the feedback from SPAG Meeting #1.

Critical issues are carried forward and used to develop goals and action items that will address these issues.

Staffing and Management
Employee well-being and job satisfaction are the most critical components of any service-oriented business, and RDD is no exception. Ensuring the proper staffing levels is beneficial for employees and operations.

Adequate staffing levels will allow employees to be more focused and efficient, which is the cornerstone of the other areas of focus. Staffing needs have been identified below.  Staff need more support.
 Maintain and attract staff with the right skillsets.

The key to RDD’s future success will rely on the ability of its staff to be responsive. The challenge of finding experienced staff is a regional problem that affects most industries. The community college offers certifications that could be used as a source for recruitment and training. As identified in the Peer benchmarking analysis, RDD should consider adding more staff as activity grows. Correcting any inefficiencies, streamlining efforts, and optimizing staffing for tasks is important for operational effectiveness.

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10 Infrastructure
The integrity and age of the infrastructure at RDD are important. Key items identified by the SPAG in Meeting #1 include enhancements to the terminal, current pavements, and runways. Infrastructure needs have been identified below.
 Rehabilitate / replace pavements and buildings.
 Expand or rebuild terminal.
 Use Customer facility charges (CFCs) for automobile parking improvements.  Evaluate extending primary Runway 16/34.
 Determine the future for the crosswind Runway 12/30.
 Consider a new runway, parallel to primary Runway 16/34.

Table 3 in the peer benchmarking analysis shows that with the amount of acreage RDD has, there is potential to grow and expand its facilities. Future growth can be seen as an attractive feature for airlines, general aviation, emergency response, and non-aeronautical development.

Air Service and Competition
Economic development and air service are highly interrelated, and RDD can benefit from partnering locally and regionally to market what it has to offer. Air Service and Competition needs have been identified below.  Address leakage to Sacramento International Airport (SMF).  Support more east-bound air service.
 Rebrand the Airport.

RDD is located within 250 miles of multiple commercial service airports. SMF, a two-and-a-half-hour drive, often draws a lot of catchment area passengers; RDD will investigate opportunities to eliminate this leakage.

More airlines routes could be an attractive feature to retain catchment area passengers; RDD is proactively seeking new service to the east with east-bound service to Denver anticipated to start soon.

The rebrand of RDD’s name and logo will support marketing efforts by giving the airport a new look and feel. The new name and logo will help to capture the vision for the future of RDD.

Economic Development and Revenue Generation
A strong financial position will allow RDD to invest in improvements and innovations. The Plan will investigate creative solutions to improve the revenue outlook. Economic Development and Financial needs have been identified below.
 Diversify revenue stream.
 Reduce reliance on airline-related income.
 Convey the economic benefit of the Airport to the community.  Return some of tax revenues generated on Airport property back to the Airport.  Reevaluate development procedures.

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11 RDD intends to reduce the reliance on airline-related income. The COVID-19 pandemic is an example of an event that has caused an unexpected uncertainty of operations. Eliminating reliance on airline-driven revenue will position RDD properly in the event of reduced passenger enplanements and operations due to loss of airlines service. RDD would like encourage tax share with the City for development projects that benefit Airport infrastructure. RDD will need to reevaluate development procedures to align with FAA regulations and the City’s development process. There is not a shortage of property to develop in the area, making the Airport a less attractive option due to regulations and the requirement to lease versus own the land. RDD will need to investigate options for incentivizing private investment, such as a Public/Private Partnership (P3).

ECONOMIC CONTRIBUTION ASSESSMENT
The Economic Contribution Assessment (ECA) measures the number of jobs, wages, and economic output generated by RDD and the businesses it supports. Economic contribution includes direct impacts, which are those directly related to the Airport and the businesses that it supports, and multiplier impacts, which are those created by the spending of money generated at the Airport within the community. The economic contribution assessment process is illustrated in Figure 4 RDD’s total economic contribution is the combination of the direct and multiplier values for each category.

The ECA data, the impact of on-airport, general aviation visitors, commercial service visitors, and capital improvement categories, reflects the conditions for 2019 and 2021. Figure 3 illustrates RDD’s 2019 and 2021 statistics for employment, payroll, and output. The 2021 average of jobs tied to RDD was more than $55,000 in wages per year, which is in line with average wages in the Redding-Red Bluff combined statistical area.

Figure 3: RDD Economic Impact 2019 and 2021 Statistics
Source: Mead & Hunt, Inc. 2022
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12 The total economic output of RDD was more than $220.8 million in 2019 and $218.3 million in 2021. The Airport and its related activities supported 1,377 employees in 2019 and 1,303 employees in 2021, both on and off the Airport. These workers earned a combined total payroll of approximately $71.8 million and $72.4 million in 2019 and 2021, respectively.

By analyzing economic impact results from 2019, a pre-pandemic year, RDD has a baseline with which to gauge its recovery. Airports of all sizes and in various locations across the country have had varying levels of negative consequences from the pandemic, with most expecting to recover by 2024 or 2025. Fortunately, RDD has proven the resilience of its operations by nearly recovering to 2019 economic impact levels despite the challenges that have arisen from changes in airport travel because of the pandemic. Continued strategic planning for future airport growth and development will augment RDD’s financial resolve and contribute to enhanced economic performance. An in-depth analysis of the economic contribution assessment is provided as a supplementary technical document in addition to the Plan.

Figure 4: RDD Economic Impact Modeling Process
Source: Mead & Hunt, Inc. 2022
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13 AIRPORT NAME UPDATE
A survey was sent to the SPAG on April 6, 2022. The survey provided four options to update the existing name, “Redding Municipal Airport.” A write in-option and a comment section were also included. Seven responses were received, and Redding Regional Airport was the preferred name. The Airport provided this information to the Redding City Council for their consideration and final approval on July 21, 2022. The Redding City Council approved the preferred name. A summary of the results is below.

Table 8: Airport Name Survey Update
Airport Name Total # 1* Votes
Redding Regional Airport 5
Redding-Shasta Regional Airport 2
Shasta Gateway Airport 0
Redding Airport 0
Total Votes 7
*Survey results show the number one ranked option selected from the ranking of four options.

No additional name options were provided. Three comments were provided for “Redding Regional Airport.”  “Simple and easy to find.”
 “Encompasses the region which goes beyond Shasta County. We serve all of northern California.”  “Although the Airport is located in Redding and Shasta County, it serves the residents and businesses of a region that is much larger than Shasta County, which is known by locals of this region as The Northstate.”

GOAL SETTING PROCESS
The information collected through SPAG Meeting #1 and the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis was used to inventory the critical issues and develop Strategic Plan goals. This information forms the basis for evaluating the progress and effectiveness of action items that come from the Plan. The process provides an action plan and provides cost estimates for the preferred goals. Table 9 shows a summary of the goals, which are discussed in more detail on the following pages.

Economic Development has been identified as the core strategic plan theme. There are four key impact areas that include:
 Infrastructure
 Revenue Generation
 Staffing and Management
 Air Service and Competition
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14 Infrastructure has been recognized as the most critical issue at RDD and main contributor for the future growth of the Airport. Recognizing each goal and the impact it has on RDD will better assist Airport Management in improving the efficiency and cost-effectiveness of the services and assist in the sustainable development of the airport infrastructure. RDD is an essential resource for the Northstate region and these solutions to the critical issues will keep the Airport in a position to drive and support regional economic growth.

STRATEGIC PLAN GOALS
The goals for this Strategic Plan will be prioritized to align with RDD’s Vision and Mission. A key element of all goals is to identify what needs to happen for work to begin. The timing of goal execution is dependent on RDD’s ability to work on achieving success with available resources. There are two classifications for the goals based on their prioritization:
 Near-term goals: develop within three years
 Long-term goals: develop within five years
Each of these goals are presented along with justifications and action items. The Plan also includes the prioritization of goals, the timeline, and expected capital costs. Table 9 provides each category and associated goals.

Action Plan Process
The Action Plan process defines the necessary steps and processes that need to be taken to achieve the determined goals. This includes identifying the responsible personnel or party and delegation for each goal, what type of support RDD may require internally, amongst RDD staff, government agencies (City, County, Federal), or external assistance such as vendors or consulting agencies, The action plan also determines the key performance indicators (KPIs) which are the critical (key) indicators of progress toward each intended result. KPIs provide a means of tracking efficiency, effectiveness, quality, employee performance, and resource utilization. Each KPI provides a measurement of progress to help better decision making.

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15 Table 9: RDD Strategic Plan Goals Infrastructure
1 Maintain pavements, utilities, and electrical systems in good condition and develop the airfield in a way that maximizes available Airport Capital Improvement Program (ACIP) funding.
2 Add or expand facilities to help the Airport keep pace with community growth and maintain its role as a regional economic engine.
3 Obtain Federal Aviation Administration (FAA) acceptance of the Airport Master Plan and approval of an Airport Layout Plan (ALP).

Revenue Generation
1 Provide a higher percentage of leasable space inside of new passenger terminal to improve customer experience and increase revenue.
2 Increase revenue from non-airline sources by ten percent to be less reliant on airline derived revenues and more in line with other peer airports. 3 Lease up to 223 acres of non-aeronautical property to further diversify revenue sources. 4 Maintain a fee and rental structure that makes the airport as financially self-sustaining as possible under the circumstances at RDD. Build a financial reserve to withstand periods of downturn.

Staffing and Management
1 Maintain an appropriate level of staffing to be responsive to tenant needs and to capitalize on growth opportunities while providing a high level of customer service. 2 Develop a training program and advancement plan for employees to boost staff retention and recruitment.
3 Create a policy management plan to keep airport staff informed about most recent trends and development of laws, regulations, and policies that affect airport operations and development.
4 Update Airport Minimum Standards, rules, and regulations to ensure that an adequate level of safe and efficient services is available to the public. 5 Update Redding Municipal and Benton Field Airport’s Airport Land Use Compatibility Plans to comply with guidance set forth by the Caltrans Division of Aeronautics.

Air Service and
Competition
1 Increase True Market passenger retention to 35 percent (an 8 percent increase Q4 2021) in the next five years by providing a high level of customer service, clean and efficient terminal facilities, and a competitive airline cost per enplanement. 2 Develop a unique RDD brand and improve communication strategies through an effective marketing plan.
3 Maintain and provide facilities that make RDD an attractive option in the Northstate for large general aviation aircraft, government operators, and their civilian contractors. 4 Develop an Airport aesthetic that has a positive reflection of Redding Municipal Airport and the region.

Source: Mead & Hunt, Inc. 2022
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16 Infrastructure Goals
RDD will update its Airport Master Plan (AMP) in 2022. This project will conclude with a capital improvement plan that lays out the sequence of future projects. The Strategic Plan will be completed before the AMP; however, the Plan will reflect goals that may be addressed in the AMP. As the AMP takes shape with the recommended airfield development and capital improvement plan, the infrastructure goals should be adjusted to correlate with the AMP. Justifications that drive each goal are provided below with the associated goal number.

Please refer to Chapter 1 - Table 10 that shows the goals and action plan developed for Infrastructure. The action items include an assumption of when the goals may occur based on the
classification, duration, costs, and staffing needs.

Justifications:
 #1 - The Federal Aviation Administration (FAA) requires that any airport that receives federal assistance to construct, reconstruct, or repair airfield pavement must provide an assurance that they have implemented an effective plan. This includes submittal of the pavement condition and status of the pavement management program to comply with Grant Assurance 11: Pavement Preventative Maintenance.
 #1 - The Airport can attract new users and retain existing users by providing well-maintained facilities.  #2 - The terminal is undersized for existing demand and is not able to accommodate future growth. #2 - The automobile facilities will need to be expanded to meet expected passenger growth.  #2 - RDD currently has a three-year hangar waitlist.
 #3 - Many of RDD’s infrastructure components within the Plan will be closely tied to the outcome of the AMP. The AMP will include an evaluation of the Airport’s existing condition as it pertains to FAA safety and design standards. The sub-goals that are presented are dependent on the outcome of the preferred alternatives and capital improvement plan and, therefore, are considered optional.  #3 - An AMP that complies with FAA design standards will help RDD secure federal funding for eligible capital projects.
 #3 - Runway 12/30 does not meet FAA funding eligibility criteria. RDD will be responsible for funding the pavement maintenance and rehabilitation without federal assistance. FAA policy states that they can only fund a single runway at the airport unless the FAA has made a specific determination that a crosswind runway has been justified. Crosswind coverage on the primary runway must be less than 95 percent for a crosswind runway to be eligible.
 #3 -Leasing non-aeronautical properties allows for the opportunity to use the acreage to develop aeronautical use, such as a parallel runway, and to open developable property for potential nonaeronautical development.  #3 - A parallel runway will allow for the separation of small and large aircraft.  #3 - A parallel runway will provide additional airfield capacity.  #3 - The 2015 RDD AMP recommended extending Runway 16/34 to support some of the most demanding aircraft that operate at RDD.

Tables 10, 11, 12, and 13 are
presented at the end of this document
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17  #3 - The 2015 RDD AMP shows a 1,000-foot expansion to the north. This would benefit the US Forest Service and large aircraft.
 #3 - The 1,000-foot expansion will keep the Runway Protection Zone (RPZ) on airport property.

Revenue Generation Goals
RDD seeks to preserve and strengthen its financial position through a variety of aeronautical and nonaeronautical activities. RDD will maintain the services and assets most appealing to prospective businesses while also working with public and private stakeholders to carefully advocate for desirable and appropriate economic development. More general awareness of the Airport and its initiatives in the community is a great way to create a positive local presence and provide education on the Airport’s operations and stewardship efforts. Justifications that drive each goal are provided below with the associated goal number.

Please refer to Table 11 that shows the goals and action plan developed for Revenue Generation. The action items include an assumption of when the goals may occur based on the classification, duration, costs, and staffing needs.

Justifications:
 #1 - Passengers will arrive at the Airport earlier and spend more money if concessions and restaurants are available post-security. This will increase Airport revenue, provide employment, and improve customer experience.
 #1 - As passenger numbers grow and the Airport’s operations and maintenance expenses increase, it will need a revenue source that keeps pace with growth. Additional leasable space will provide revenue for the Airport while simultaneously meeting the need of passengers, visitors, and employees.
 #2 - Over-reliance on airline-derived revenues (which includes non-aeronautical items that passengers buy, such as automobile parking and rental cars) can expose an airport to risk as air service ebbs and flows. During down-years, airports that are overly reliant may experience cash flow challenges.
 #3 - Peer benchmarking shows that RDD generates 56 percent of its revenue from non-airline sources. Some peer airports (such as Stockton (SCK)) generate as much as 64 percent of their revenue from non-airline sources.
 #3 - Revenue diversification can help lower Cost per Enplanement (CPE), which may attract additional service.
 #4 - Maintaining a fee and rental structure allows RDD to invest in capital projects without the need of federal funding, which allows for more flexibility on where the funding is allocated and what type of projects are developed.
 #4 - Local City match for infrastructure projects to meet FAA’s grant match requirements when awarded a federal grant is a challenge, and a financial reserve would help contribute to these capital projects and assist in expediting the process.
 #4 - Local law requires surplus Airport budget to be used for debt service, so money cannot be carried over from year to year.

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18 Staffing and Management Goals
RDD is charged with providing safe, efficient, and quality service to the customers and stakeholders. This is largely possible through the efforts of trained staff that complete the operational, administrative, and managerial activities. Based on an assessment of airports with similar levels of activity, RDD has fewer fulltime employees (FTE) than the peer group average. Staffing goals also consider retention and recruitment programs to retain qualified staff, which will assist in efficiency improvements and enhance conditions.

Justifications that drive each goal are provided below with the associated goal number. Please refer to Table 12 that shows the goals and action plan developed for Staffing and Management. The action items include an assumption of when the goals may occur based on the classification, duration, costs, and staffing needs.

Justifications:
 #1 - Peer Benchmarking of Average Enplanements per Average Full-Time Equivalent (FTE) Employee analysis shows that RDD has fewer staff than several of its peer airports based on measures of activity like enplanements and revenue. To continue providing quality services, RDD will need to take on additional staff to meet current and future demand.  #2 - Airport employees are highly specialized, and they work in a highly regulated field (local, state, and federal requirements). It is time consuming and expensive to train staff without experience and difficult to attract staff that have experience from elsewhere.  #2 - Opportunities for training and advancement allow for employee growth and flexibility within the Airport, which shows incentive for upward mobility and how employees can progress in each defined career within the Airport.
 #3 - Airport regulation is constantly changing, and management needs to remain up to speed on the latest guidance and requirements coming from the federal, state, and local levels.  #3 - Changes in policy can affect availability of grant funding, change capital improvement priorities, and introduce complexity into development projects.
 #3 - As the Airport seeks to attract private development, management must help would-be developers navigate federal and local requirements. Failure to do so can disincentive development on airport property and cause developers to look for other opportunities in the area without as many regulations.  #3 - Return of some of the tax income can be use on airport development projects that are not eligible for federal funding, such as revenue producing projects and non-aeronautical development.  #3 - This funding will create short-term construction jobs and long term sustained employment once construction is complete.
 #4 – Updating minimum standards set forth RDD minimum requirements. An individual or entity wishing to provide aeronautical services to the public on a public-use airport must meet standards in order to provide services.
 #4 - City of Redding City Council Policy for Airport Operating Rules and Regulations and Minimum Standards for Aeronautical Activities became effective on August 21, 1990, and was amended on April 17, 2009, by resolution No. 2009-26.
 #5 – The State of California is requesting the Airport Land Use Compatibility Plan (ALUCP) be updated for both Redding Municipal and Benton Field Airports.

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19 Air Service and Competition Goals
Air service is an important attribute of the growth of RDD, and the infrastructure and staffing levels need to keep pace with any plans for increasing activity. Air service is highly competitive, and airlines weigh many factors when determining which markets to serve. Competition exists for users of general aviation facilities as well; however, it is not to the degree of that for commercial airlines and their customers. Growing air service will help keep airfare competitive and provide more non-stop options for residents and visitors, which will assist in minimizing passenger leakage.

Justifications that drive each goal are provided below with the associated goal number. Please refer to Table 13 that shows the goals and action plan developed for Air Service and Competition. The action items include an assumption of when the goals may occur based on the classification, duration, costs, and staffing needs.

Justifications:
 #1 - Air service is growing at RDD, and airlines are taking notice of the community’s growth. The Airport can capitalize on this local growth if it can convince air carriers to provide more service.  #2 - Sacramento International Airport (SMF) is two-and-a-half-hour drive away from the City of Redding, and 57 percent of RDD’s true market uses SMF over RDD.  #2 - The revenue generated from local services puts money back into the local economy. Money spent on incentives comes back in the form of passenger facility charges, increased spending at the Airport, and increased visitor spending in the community.  #2 - Rebranding could potentially influence customers to choose RDD as their preferred airport.  #2 - The City of Redding is drafting a new marketing style guide and the Airport can use this effort to modernize its style, better reflecting the direction of the broader community.  #3 - General aviation is an important component to the health and viability of RDD. – Growing general aviation will help increase land lease revenue, fuel flowage revenue, and provide incentives for private investment at RDD.
– As the local economy grows, it is possible that some businesses that are new to the community may operate or charter aircraft as part of their operations. It is important that the Airport be able to accommodate these new users to help the broader community achieve its economic development goals.
 #4 - The aesthetic of the Airport is important as it can be seen as the community’s front door and first impression when arriving at RDD, the City of Redding, and the region. It is also the last impression when travelers are leaving the region.
 #4 - The physical appearance of the entrance into the airport should show a positive impression with updated signage.
 #4 - The first impression when entering the terminal from a flight, as well as initial interactions inside the terminal that includes signage, marketing, tourism, and interaction with Airport, TSA, airlines, and car rental personnel, should reflect a positive experience for arriving passengers.  #4 - City of Redding- Visit Redding campaign could provide a presence at the Airport to welcome and provide information to guests about things to do and access to accommodations.

Packet Pg. 791 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Strategic Plan - Draft
20 Developable Areas
RDD has 900 acres of developable land. Of that total acreage, 677 acres are classified as aeronautical developable areas with direct access to the airfield and 223 acres are classified as non-aeronautical developable areas. If Runway 12/30 is closed, an additional 105 acres would be available for aeronautical development. Figure 5: Developable Areas shows the aeronautical and non-aeronautical developable areas at RDD.

Packet Pg. 792 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Strategic Plan - Draft
21 Figure 5: Developable Areas
Packet Pg. 793 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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22 [THIS PAGE INTENTIONALLY BLANK]
Packet Pg. 794 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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23 LAND USE COMPATIBILITY PLAN UPDATE
Airport Land Use Commissions (ALUCs) undertake land use compatibility planning efforts to protect public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses. One of the primary responsibilities of an ALUC is the preparation and adoption of an Airport Land Use Compatibility Plan (ALUCP) for each public-use airport within its jurisdiction.

Shasta County Airports
Shasta County includes three public-use airports for which a compatibility plan is required: the Redding Municipal Airport (RDD), Benton Airpark (O85), and Fall River Mills Airport (O89). Correspondence from the California Department of Transportation (Caltrans), Division of Aeronautics, states that:
 The ALUCP for RDD was prepared in 1984,
 The ALUCP for O85 was prepared August 1983, and
 No ALUCP has been prepared to date for O89.

According to guidance set forth by the Caltrans Division of Aeronautics, the ALUCP for an airport included in the National Plan of Integrated Airport System (NPIAS) “shall include and be based either on a longrange master plan or an airport layout plan….” In the absence of a recent master plan, an FAA-approved Airport Layout Plan (ALP) can serve as the basis of the plan. For airports not included in the NPIAS, the Division of Aeronautics will accept an ALP or airport diagram to serve as the basis of the plan. The preparation of a new Master Plan and ALP for RDD presents a good opportunity to revise the ALUCP.

It has been nearly four decades since the County adopted ALUCPs for RDD and 085. It is recommended that the County revise the ALCUP for each airport and prepare an ALCUP concurrently for O89. The revision of previous ALUCPs and preparation of a new ALUCP would accomplish several purposes:
 Incorporate new, up-to-date information developed and made available during the development of the RDD Master Plan and its associated ALP.
 Address changes in the conditions at each airport, its operations, and its vicinity over time.  Provide an ALUCP for each airport that is consistent with Caltrans 2011 guidance set forth in the California Airport Land Use Planning Handbook.
 Promote compliance with California Public Utilities Code (PUC) Section 21675, which mandates ALUCs to formulate an ALUCP for each public-use airport and the areas surrounding the airport within its jurisdiction.

The format of ALUCPs may vary; an ALUC can prepare a separate ALUCP for each airport or prepare a Countywide ALUCP to address all airports located in the county. It is recommended that Shasta County undertake a countywide plan to promote consistency among the policies for all three airports. Under this approach, the ALUCP would provide:

Packet Pg. 795 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Strategic Plan - Draft
24  County-wide definitions and procedural policies that apply to all three airports, and  Airport-specific criteria, policies, and maps.

The countywide policies and airport-specific policies would comprise a complete ALUCP, but the County would have greater flexibility when updates associated with only a single airport would be required. Should the policies for a single airport require modification, the county-wide policies and airport-specific policies for the remaining two airports would remain in place, and only one chapter would require revision.

SUMMARY
Maintaining the quality and upkeep of RDD’s infrastructure and diversifying revenue generation for the airport are the most critical components of RDD’s vision for the next five years. The goals that have been developed through the Plan process are interrelated and rely on components of each goal category to support overall development. Adequate staffing, developable land, and air service expansion all play a role to support economic development. The goals developed support the airports long-term vision to be financially self-sustainable.

RDD wishes to be the preferred airport for the Northstate by connecting their travelers with a high quality and convenient travel experience. The mission and vision support RDD’s positioning as the framework for the motivation of those working for RDD. This allows for the basis for performance standards and acts as a guide for decision making for employees at all levels. Providing RDD with a new name will offer a rebranding opportunity and marketing strategy for RDD to be seen as the regional airport of choice for Northern California.

Infrastructure improvements that will be addressed in the Airport Master Plan will force careful consideration of air service development; however, growth supports continued expansion of the offerings available at RDD. Economic development and air service are highly interrelated, and RDD has several regional partners for this effort. A strong financial position will allow the RDD to invest in the improvements and innovations that will keep RDD as the essential airport for resource protection and public safety.

The estimated cost of implementing the major elements of the Plan is 2.1 million dollars over the course of five years. For planning purposes, the projects outlined in the Plan are anticipated to begin in 2023 and continue through 2027 and beyond as strategies are updated and enhanced. The financial plan assumptions serve as a guide for meeting RDD’s current and future obligations. To meet realistic funding expectations, it may be necessary to weigh each project in a thoughtful and economical manner through selective implementation. Knowing the full scope of development opportunities enables the RDD to capitalize on opportunities, respond to financial realities, and select projects that are in accord with the overall strategic vision. Please note that the major elements cost does not show all goal-related costs due to additional planning required to fully establish level of effort. Some goals indicate that it would take internal staff time, resources, and maintenance to complete. The current draft RDD Master Plan should develop costs associated with the infrastructure capital improvement projects. These expenditures are a programming analysis and not a financial commitment on the part of any entity (i.e., the FAA or the County).

The Plan serves as a guide and provides support for RDD and stakeholders when implementing the goals of the Airport. It demonstrates that RDD is being proactive by taking the necessary steps to ensure that the Airport has a plan for self-sustainability while considering the economic impact for the region.

Packet Pg. 796 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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25 Table 10: Infrastructure Goals and Action Plan
Goal
Infrastructure
Term Duration
(Quarter) Costs
Staffing Needs
Key Performance Indicators (KPIs)
Description Internal External
1 Maintain pavements, utilities, and electrical systems in good condition and develop airfield in a way that maximizes available Airport Capital Improvement Program (ACIP) funding. Near 9 $70,000 Management Consultant - Percentage of runways with airfield pavements in fair or better condition.
- Pavement Condition Index (PCI) goal
of above 70 or 80 is achieved.
- Received FAA grant funding for
pavement projects.
- Received funding from City of
Redding and State of California to
support pavement projects to meet
Sponsor match or fund stand-alone
projects.

A1 Update RDD Airport Pavement Management System (APMS) every three years or as frequently as needed with available ACIP funding or for specific project justification. Near 3 $60,000 Operations Consultant A2
Provide the City and state with a pavement priority list to show a plan to secure local funding for projects such as crack repair, seal coats, and re-marking; therefore, the city and state anticipate securing funds in their budget necessary to support Airport pavement projects.

Near 2 Internal staff time Management N/A
A3
Determine pavement priority projects and perform updated inspections and condition rating for each pavement project to provide justification to FAA for funding. Set a Pavement Condition Index (PCI) goal to achieve.

Near 2 $10,000 Operations Consultant
A4
Continue to show FAA that RDD is working with the City to fund pavement projects such as crack repairs to demonstrate that RDD is taking the necessary actions in maintaining the Airport pavements, which helps with eligibility and securing federal funding for larger pavement projects.

Near 2 Internal staff time Management Consultant
2 Add or expand facilities to help the Airport keep pace with community growth and maintain its role as a regional economic engine. Near 17 $519,000 Management Consultant - Passenger terminal square footage - Number of parking spaces
- Number of gates
- Peak hour passengers
A1 Complete a Terminal Concept and Budget Report to determine an optimum size considering both the financial and operational issues for the existing terminal. Near 6 $454,000 Management Consultant A2
Complete a parking and surface transportation analysis to determine parking and circulation needs.

Determine what facilities can be developed through the collection of Customer Facility Charges (CFCs).

Long 2 $65,000 Management Consultant
A3 Investigate areas on the airfield that support hangar development with the developable land available.

Look into Public Private Partnerships (P3s) and private funding. Near 5 Internal staff time Operations Private Party A4 Incorporate changes onto the Airport Layout Plan. Near 4 Internal staff time Operations FAA 3 Obtain Federal Aviation Administration (FAA) acceptance of the Airport Master Plan and approval of an Airport Layout Plan (ALP). Near 10 $1,075,000 Management Consultant, FAA - Capital improvement plan task completion
- AIP grants project completion
A1
Continue coordinating with the FAA and planning consultant to prepare the AMP. The AMP should address the following infrastructure development opportunities. – The future disposition of crosswind Runway 12/30
– The ultimate length of primary Runway 16/34
– The potential development of parallel runway 16L/34R, which would rename the existing primary runway as 16R/34L
Near 8 $1,000,000 Management
Stakeholder
Groups, FAA,
Consultant
A2
Following development of a preferred airfield layout in the AMP, determine the future land use (aeronautical and non-aeronautical) for remaining airport property and property that the Airport may consider acquiring.
– Determine market opportunities, site conditions, market dynamics for different real estate use types, and the financial characteristics of prospective development programs. – Maintain and preserve the airspace in the approach and departure corridors.

Long 2 $75,000 Management
Consultant,
Realtor, Property
Development
Specialist
Packet Pg. 797 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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26 Table 11: Revenue Generation Goals and Action Plan
Goal
Revenue Generation
Term Duration
(Quarter) Costs
Staffing Needs
Key Performance Indicators (KPIs)
Description Internal External
1 Provide a higher percentage of leasable space inside of new passenger terminal to improve customer experience and increase revenue. Long 5 TBD Management Consultant -
Airport
Concessionaire
- Gross revenue to the airport per
enplanement (or for total passenger)
for spending on terminal retail.
- Total annual nonaeronautical
operating revenue as a percentage
of total annual operating revenue.

A1 Evaluate travel flow to find desired locations for leasable spaces and set rent accordingly. Long 1 TBD Operations Consultant A2 Identify available spaces for lease in terminal that follow best practices in passenger terminal layout and development (e.g., keeping passengers near their gate to encourage additional dwell time). Long 1 TBD Operations Consultant A3 Interview current and prospective tenants to determine desired improvements that they would be willing to pay for and where their preferred location in the new terminal might be. Long 1 TBD Operations Consultant A4 Consider contracting with an airport-specific concessionaire to reduce staff workload as passenger volume and business interest grow. Long 2 TBD Administration Consultant 2 Increase revenue from non-airline sources by ten percent to be less reliant on airline derived revenues and more in line with other peer airports. Near 10 Internal staff time Management Consultant - Number of lease agreements - Number of hangars
- Non-aeronautical revenues.

A1
Several properties that are suitable for non-aeronautical development were identified on the previous AMP. It is recommended that the upcoming AMP include a similar analysis. – Consider surface transportation, availability and capacity of utilities, and zoning when determining highest and best use of properties.
– Promote development of land uses that are compatible with aviation operations and do not emit smoke, dust, steam, or glare. Consider the potential for interference with navigational aids and avoid structures that may penetrate airspace surfaces.

Long 8 Internal staff time Operations Consultant
A2 The Airport may consider working with a property development specialist that understands the Northstate real estate market to help position the properties for development. Long 2 Internal staff time Management Consultant 3 Lease up to 223 acres of non-aeronautical property to further diversify revenue sources. Long 2 Internal staff time Management Consultant, City, County - Proposed developable land is under
lease agreements.
- Increase in Airport revenues. A1 The Airport may consider working with a property development specialist that understands the Northstate real estate market to help position the properties for development. Long 2 Internal staff time Administration Property
Development
Specialist
4 Maintain a fee and rental structure that makes the airport financially self-sustaining as possible under the circumstances at RDD. Build a financial reserve to withstand periods of downturn. Long 10 Internal staff time Management City - Increase in Airport revenues. - Annual surplus budget to support
RDD projects.
- Updated lease agreements that
increase revenue generation.

A1
Use FAA guidance Order 5190.6B Change 1: Airport Compliance Manual for proper implementation of self-sustainability actions.
– Fees for the use of the airfield generally may not exceed the airport’s capital and operating costs of providing the airfield. Aeronautical fees for landside or airside facilities (e.g., hangars) in nonmovement areas may be at fair market rate. – Rates charged for non-aeronautical use (e.g., concessions) of RDD must be based on fair market value.
– When entering new or revised agreements, or otherwise establishing updated rates, charges, and fees, negotiate the rates based on best effort to reach a self-sustainable goal for the long term.

Long 2 Internal staff time Administration/
Finance City
A2 Develop an airport financial reserve using surplus budget to make the Airport more financially resilient.

RDD to work with the City to reevaluate fiscal policy related to surplus budget retention. Long 8 Internal staff time Management City Packet Pg. 798 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
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27 Table 12: Staffing and Management Goals and Action Items Goal
Staffing and Management
Term Duration
(Quarter) Costs
Staffing Needs
Key Performance Indicators (KPIs)
Description Internal External
1 Maintain an appropriate level of staffing to be responsive to tenant needs and able to capitalize on growth opportunities while providing a high level of customer service. Near 6 $150,000 Management City - Average task resolution time - Customer satisfaction survey
statistics
- Employees retention or turnover rate
- Percentage of open jobs
- Employee performance reviews
- Associate/team engagement
- Number of staff
- Payroll expense
- Work request response times
A1
Evaluate efficiency improvements that may improve staff capacity without requiring new staff. – Interview employees to find ways to improve efficiency with current number of employees. – Incorporate new technology (e.g., tablet computers) to streamline processes. – Define roles, expectations, and responsibilities of staff. – Adjust schedule, if necessary, based on high traffic/regulated times. – Provide internships for students from the local universities to work at the Airport.

Near 2 $50,000 Operations
ConsultantTraining/Coaching
Services
A2
Consider how goals and projects associated with the Strategic Plan and Master Plan will affect staffing needs.
– Determine the number of staff needed for goals and projects. – Determine which staff members/which type of employee will assist on goals and projects. – Determine timeline of goals and projects.
– Determine if additional staff will be needed to assist with goals and projects. – Consider cost of training current employees and/or hiring new staff.

Near 2 $50,000
Operations,
Administration,
Finance
ConsultantTraining/Coaching
Services
A3
Consider what trigger points would require hiring new staff and the number of staff that would be needed (e.g., an increase in enplanements or operations). – Goals and projects associated with the Strategic Plan and Master Plan. – The level of enplanements and/or operations that would require hiring additional staff. – The number of leased properties to tenants and number of required staff to operate the spaces.

Near 2 $50,000
Operations,
Administration,
Finance
ConsultantTraining/Coaching
Services
2 Develop a training program and advancement plan for employees to boost staff retention and recruitment. Long 6 Internal staff time Management
ConsultantTraining/Coaching
Services
- Expenditure on training and staff
development per employee
- Percent of course participants
- Percent rate of productivity before
and after training
- Employee tenure and retention
A1
Work with current employees to identify their training needs and use their feedback to inform a training program for new employees.
– Conduct interviews with employees to identify training needs, career goals, etc. – Establish an onboarding training for new employees.

Near 2 Internal staff time
Operations,
Administration,
Finance
City, Community
College, Aviation
organizations
(AAAE)
A2
Seek professional development opportunities to further develop internal talent. – Provide employees with a defined pathway to advancement opportunities. – Provide training.

Long 2 Internal staff time
Operations,
Administration,
Finance
City, Community
College, Aviation
organizations
(AAAE)
A3 Allow staff to express their interests in other roles and provide training for new opportunities. Long 2 Internal staff time Operations,
Administration,
Finance
City, Community
College, Aviation
organizations
(AAAE)
3 Create a policy management plan to keep airport staff informed about most recent trends and development of laws, regulations, and policies that affect airport operations and development. Long 6 $1,000 Management Government
Organizations
(City, County,
State, Federal),
Aviation
Organizations
(AAAE)
- Increase in Management and staff
attending conferences, seminars,
webinars related to industry trends
and changes.

Packet Pg. 799 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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28 Goal
Staffing and Management
Term Duration
(Quarter) Costs
Staffing Needs
Key Performance Indicators (KPIs)
Description Internal External
A1 Maintain membership in airport industry groups, including the national and southwest chapters of the American Association of Airport Executives and the Association of California Airports. Near 4 $1,000 Administration Government
Organizations
(City, County,
State, Federal),
Aviation
Organizations
(AAAE)
- Increase in Management and staff
membership to Aviation related
organizations.

A2 Maintain dialogue with state and national elected representatives to keep spotlight on airport issues and draw attention to how policy changes may affect the Airport. Near 1 Internal staff time Management Government
Organizations
(City, County,
State, Federal),
Aviation
Organizations
(AAAE)
A3 Evaluate that RDD revenue generation and redistribution is compliant with FAA Grant Assurance 25 Airport Revenues. Educate City Council(s) and stakeholders on FAA grant assurances. Near 1 Internal staff time Finance Government
Organizations
(City, County,
State, Federal),
Aviation
Organizations
(AAAE)
4 Update Airport Minimum Standards, rules, and regulations to ensure that an adequate level of safe and efficient services is available to the public Long 7 Internal staff time Management Tenants, Stakeholders - Updated documents for Minimum standards, rules and regulations,
development standards and rents
and policy standards.
- Annual checklist that ensures tenant
follow Minimum Standards, rules,
and regulations.

A1 Review and update existing document and discuss updates with current tenants to ensure that they are applied objectively and uniformly to all on-airport commercial aeronautical activities. Long 1 Internal staff time Operations, Administration Consultant A2 If necessary, use the guidance of the National Air Transportation Association (NATA) 2009 Airport Sponsors Guide to Minimum Standards & Airport Rules and Regulations.

Long 1 Internal staff time Operations,
Administration Consultant
A3 If necessary, implement FAA AC 150/5190-7 Minimum Standards for Commercial Aeronautical Activities issued August 28, 2006. Long 1 Internal staff time Operations, Administration Consultant A4 Implement a courtesy check to identify that all tenants are operating legitimately on airport property. Long 4 Internal staff time Operations, Administration Consultant
5 Update Redding Municipal and Benton Field Airport’s Airport Land Use Compatibility Plans (ALUCPs) to comply with guidance set forth by the Caltrans Division of Aeronautics. Long 13 $200,000 Management City, County - Updated ALUCP for Redding Municipal Airport (RDD), Benton
Field Airport (O85), Fall River Mills
Airport (O89) supported by funding
from Shasta County.
- City GIS tool located on City of
Redding and RDD website.

A1 Explore funding options from State, County, and City to complete the ALUCP, which would include completion of RDD and O85.

Long 4 Internal staff time Finance,
Administration City, County
A2
Shasta County undertakes a countywide plan to promote consistency among the policies for all three airports (Redding Municipal Airport (RDD), Benton Field Airport (O85), Fall River Mills Airport (O89).

Under this approach, the ALUCP would provide:
– County-wide definitions and procedural policies that apply to all three airports and – Airport-specific criteria, policies, and maps.

Long 5 $200,000 Finance,
Administration City, County
A3 Develop a GIS tool that provides data for the Land Use Update to assist with expediting permitting. Long Internal staff time Finance, Administration City, County
Packet Pg. 800 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Strategic Plan - Draft
29 Table 13: Air Service and Competition Goals and Action Plan Goal
Air Service and Competition
Term Duration
(Quarter) Costs
Staffing Needs
Key Performance Indicators (KPIs)
Description Internal External
1 Increase True Market passenger retention to 35 percent (an 8 percent increase Q4 2021) in the next five years by providing a high level of customer service, clean and efficient terminal facilities, and a competitive airline cost per enplanement.

Long 6 Internal staff time Management Consultant, Airlines - Number of passenger enplanements
- Revenues per enplanement
- Number of airline load factors
- Number of community activities
held at each airport
- Check-in waiting times
- Baggage delivery time
- Waiting time at TSA
- Number of boarding gates
- Number of concessions
- Flight frequencies
- Reduction of passenger leakage
to SMF
A1
Use the Passenger Demand Analysis report and the True Visitation Estimate report, which RDD procures from its air service development consultant, to identify air service development opportunities and focus marketing efforts.

Near 1 Internal staff time Management Consultant, Airlines A2 Continue partnership with the Redding Chamber and Shasta Economic Development Corporation to market the community to airlines. Near 1 Internal staff time Management Redding Chamber of Commerce, EDC A3 Focus on increasing east-bound services to address diversion to SMF. – Identify necessary infrastructure upgrades (such as a longer runway) in the Master Plan. Long 4 Internal staff time Management Consultant, Airlines 2 Develop a unique RDD brand and improve communication strategies through an effective marketing plan. Near 0 $30,000 Management Consultant
- Implementation of updated Airport
name.
- Updated signage and marketing
material with new Airport name.

A1
Develop a new airport name and logo, refresh signage, letterhead, website, and other locations where the name and logo appear.
– Coordinate with the FAA to update instrument procedures and airport charts.

Near 4 $30,000 Management Consultant, City
Council, FAA
A2 Use the rebrand to raise local awareness about the Airport, the services it offers, and the destinations that are available. Long 4 Internal staff time Management Consultant, City,
Chamber of
Commerce, EDC
3 Maintain and provide facilities that make RDD an attractive option in the Northstate for large general aviation aircraft, government operators, and their civilian contractors. Long 8 Internal staff time Management Consultant - Number of based aircraft, - Number of general aviation
landing fees,
- Length of time in months or years
it takes to obtain a hangar
o Consider if aircraft wingspan
plays a role in the wait time.
- Increased number of hangar
leases,
- fuel sales revenue.
- Increased gallons of Jet A and
100 LL fuel.

A1 It is recommended that the AMP identify future general aviation development areas and develop a capital plan that meets the needs of the general aviation community. Long 4 Internal staff time Management, Operations Stakeholders,
Engineering/Planning
Consultant, FAA
A2
The Airport, the EDC, and the Redding Chamber of Commerce should evaluate how the Airport is marketed to businesses that are considering relocating to the area. If businesses are interested in services and facilities that the Airport does not yet provide, it is recommended that consideration be given to whether or not provision of these services is viable.

Long 4 Internal staff time Management EDC, Chamber of
Commerce
Packet Pg. 801 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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30 Goal
Air Service and Competition
Term Duration
(Quarter) Costs
Staffing Needs
Key Performance Indicators (KPIs)
Description Internal External
4 Develop an airport aesthetic that has a positive reflection of Redding Municipal Airport and the region. Near 12 Internal staff time Management City, EDC, Chamber of Commerce - Brand recognition - Marketing material with updated
Airport name.
- Increase of events hosted at
RDD.
- Airport entrance that provides a
positive impression to travelers
and community members.
- Customer feedback of facilities
and services.
- Advertising that extends outside
of Airport, and into businesses
and community.

A1
Develop marketing material which may include a memorial in the front of the terminal, flags that can also be used for marketing, a static display of aircraft, or other symbolic representation. RDD should explore collaborating with an advertising contractor.

Near 2 Internal staff time Administration
Advertiser
Contractor, City,
EDC, Chamber of
Commerce
A2 Provide a volunteer customer service desk with knowledgeable volunteers that will represent the Airport, the City, and the region well. Near 2 Internal staff time Administration Community College,
City, EDC, Chamber
of Commerce, City,
County
A3
Develop customer surveys using City of Redding resources to get feedback on Airport experience and eservices. Look into including a Quick Response (QR) code in the holdroom to scan for customer survey or including the survey before guests access the Airport internet.

Near 2 Internal staff time Administration City
A4 Host social events at RDD that showcase community events, businesses, and tourism within the region. Long 2 Internal staff time Administration
City, County, EDC,
Chamber of
Commerce, Local
businesses
A5
Host aviation-related events, such as the Experimental Aircraft Association (AAE)/Young Eagles, Women of Aviation Worldwide Week (WOAW), National Association of State Aviation officials (NASAO), or US Youth Art Contest, to gain community interest and youth participation while educating the community on the benefits of the airport.

Long 2 Internal staff time Administration
Aviation
Organizations, Local
Pilot groups, City,
EDC, Chamber of
Commerce
A6 City of Redding Visit Redding Campaign could provide a presence at the Airport to welcome and provide information to guests about things to do and access to accommodations. Near 2 Internal staff time Administration Visit Redding Packet Pg. 802 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

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31 ACRONYMS AND DEFINITIONS
ACV
ALP
ALUC
ALUCP
AMP
BUR
O85
Caltrans
CATS
CFC
CIP
CPE
DEN
EDC
O89
FAA
FBO
FTE
GA
KPI
PUC
P3
LAX
MFR
NADR
NPIAS
PFAS
RDD
RPZ
SCK
SEA
SFO
SMF
SMX
SPAG
STS
SWOT
TSA
TVE
TYR
TWF
USFS
WP
California Redwood Coast- Humboldt County
Airport Layout Plan
Airport Land Use Commission
Airport Land Use Compatibility Plan
Airport Master Plan
Hollywood Burbank Airport
Benton Field – Benton Airpark
California Department of Transportation
Certification Activity Tracking System
Customer Facility Charge
Capital Improvement Plan
Cost per Enplaned Passenger
Denver International Airport
Economic Development Corporation
Fall River Mills Airport
Federal Aviation Administration
Fixed Based Operator
Full Time Equivalent Employee
General Aviation
Key Performance Indicator
Public Utilities Code
Public Private Partnerships
Los Angeles International Airport
Rogue Valley International – Medford Airport
Non-Airline Derived Revenue
Nation Plan of Integrated Systems
Per- and Polyfluoroalkyl Substances
Redding Municipal Airport
Runway Protection Zone
Stockton Metropolitan Airport
Seattle – Tacoma International Airport
San Francisco International Airport
Sacramento International Airport
Santa Maria Airport
Strategic Plan Advisory Group
Charles M Schulz- Sonoma County Airport
Strengths, Weaknesses, Opportunities, Threats
Transportation Security Administration
True Visitation Estimate
Tyler Pounds Regional Airport
Joslin Field – Magic Valley Regional Airport
United States Forest Service
Working Paper
Packet Pg. 803 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Strategic Plan - Draft
32 [THIS PAGE INTENTIONALLY BLANK]
Packet Pg. 804 Attachment: Draft Redding Municipal Airport Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

Redding Municipal
Airport Economic
Contribution
Assessment

MEAD & HUNT, INC
Packet Pg. 805 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
i
Table of Contents
Summary Findings...................................................................................................................................... 1 Introduction ................................................................................................................................................. 1 The Economic Modeling Process.............................................................................................................. 2 Measures of Economic Impact ............................................................................................................... 2 Categories of Economic Impact.............................................................................................................. 2 Types of Economic Impact ..................................................................................................................... 3 Economic Model Creation and Testing..................................................................................................... 4 IMPLAN Model Development ................................................................................................................. 4 Data Collection and Estimates ............................................................................................................... 4 Data Validation and Completion...........................................................................................................10 Results .......................................................................................................................................................11 Direct Impacts.......................................................................................................................................11 Multiplier Impacts..................................................................................................................................13 Total Impacts ........................................................................................................................................14 Tax Impacts ..........................................................................................................................................15 Summary....................................................................................................................................................16 Acronym List .............................................................................................................................................18 Packet Pg. 806 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
1 ECONOMIC CONTRIBUTION ASSESSMENT
The Redding Municipal Airport (RDD or the Airport) serves as an important transportation hub for northern California. Providing services for commercial airlines and general aviation users, the Airport is an economic engine for the region, responsible for generating jobs, and economic output that ripples throughout California. This study quantifies those economic impacts in terms of employment, payroll, output, and taxes generated.

SUMMARY FINDINGS
This assessment provides details on the economic impacts attributed to RDD. These results are reported by type of economic impact and by category. Major sections of this assessment address the three types of economic impacts – direct, multiplier, and total. Tables within each major section illustrate the four categories of economic impact in order starting with the greatest impacts – on-airport, commercial airline visitors, capital improvements, and general aviation (GA) visitors. The table to the right summarizes the total economic impacts of the Airport. In short, this report demonstrates the important economic impacts that RDD contributes to the California economy, supporting more than 1,300 jobs and generating more than $218 million in economic output in 2021. Each visitor coming through the Airport, on average, generated more than $950 in output. For every dollar that the
City of Redding invested in airport capital
improvements, the Airport generated $325 in total
output. This report explains the process by which
these numbers were determined by further detailing
the data collection methods and defining the inputs
for determining RDD’s economic impact.

INTRODUCTION
Economic contribution assessments (ECAs), which are sometimes called economic impact assessments, measure the number of jobs, wages, economic output, and taxes generated by an entity and the businesses it supports.

This economic impact assessment was undertaken while the aviation industry was still recovering from the COVID-19 pandemic. In order to assess where RDD is on the road to recovery, this ECA collected data from RDD and its associated businesses that reflected conditions in 2021 and asked respondents to identify how their business has changed since 2019. The intent was to develop RDD’s economic impact results for both 2021 and 2019 (the study years) so that a comparison could be made with the pre-pandemic results of 2019. This would give an indication of how far along RDD was in its recovery.

The next section describes the process of, and terminology used in, developing the economic impact results associated with RDD.

Redding Municipal Airport
Economic Contribution Summary
Year Employment Payroll Output
2019 1,377 $71,833,000 $220,893,000
2021 1,303 $72,487,000 $218,366,000
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REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
2 THE ECONOMIC MODELING PROCESS
Airport economic impacts are either estimated using data gathered from airports or calculated using an economic input-output model. This input-output model, described in more detail below, provides three measures of economic impact, broken down into several categories of economic impact, and expressed as three related types of economic impact, as shown in Table 1.

Table 1: Elements of an Economic Impact Assessment
Economic Impact
Measures Categories Types
Employment
Payroll
Output
On-airport
Visitors
Capital improvement projects
Direct
Multiplier
Total
Source: Mead & Hunt
Measures of Economic Impact
Economic impacts are expressed using three measures – employment, payroll, and output.  Employment – Employment is based on the total of full-time jobs plus part-time jobs, where two parttime positions are the equivalent of a single full-time position.  Payroll – Payroll represents the costs associated with the annual salary, wages, and benefits earned by all employees and business owners included under the employment measure.  Output – Output is the quantity of goods and services generated annually by an airport along with its associated activities and businesses, expressed in dollars. Output is estimated using an organization’s annual sales, or its annual operating costs, which assumes that its output is approximately equivalent to what it expends.

Payroll and output cannot be combined because elements of economic benefit related to payroll are also contained, to some extent, in the output estimate. Each of the three impact measures (employment, payroll, and output) stand alone as part of the quantification of an airport’s total economic impact.

Categories of Economic Impact
The three measures described above are used to evaluate several categories of economic impact. These categories are based on the source of economic activity and require various forms of inputs that are described below in detail.
 On-Airport Activity – This category includes airport tenants that are businesses with employees, such as airlines, fixed base operators (FBO), flight schools, charter outfits, flight departments, concessionaires, and airport restaurants. Also included are governmental agencies, such as public airport sponsors, air traffic control organizations, other Federal Aviation Administration (FAA) units, as well as other state and federal agencies that serve or use aviation. Output for on-airport activities is typically assumed to be the sum of annual gross sales.

Packet Pg. 808 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
3  Capital Improvement Projects – Each year, airports undertake capital improvement projects (CIP) to improve or maintain their property and facilities, such as runway rehabilitation or terminal improvements. In addition, businesses and other agencies also undertake capital improvements.

These projects employ people in jobs such as construction, architecture, engineering, and consulting.  Visitors – This impact results from expenditures by non-local people arriving via commercial airlines or general aviation aircraft. The annual spending of these visitors is treated as output. Visitor spending supports jobs in the region, such as in the hospitality industry.

Types of Economic Impact
Data gathered from the categories described above are used as inputs for a linear input-output economic impact model. That model estimates three types of economic impact associated with airports using each of the three economic impact measures described previously.  Direct Impacts – Direct impacts account for the initial point where the money from aviation-related activity first starts circulating in the economy. This includes impacts that result from on-airport activity (including capital improvements), and visitor spending. On-airport activity includes the benefits associated with businesses and government organizations located at the airport, which are directly related to the provision of aviation services. On-airport impacts include the employment, payroll, and spending of businesses such as FBOs, flight schools, aircraft repair facilities, and airport management and operations staff. Visitors contribute to direct impacts through their off-airport spending (any on-airport spending by visitors is included in the on-airport impacts), including purchases that might take place at restaurants or hotels. Direct impacts serve as the inputs for the economic model.
 Multiplier Impacts – Multiplier impacts result from the re-spending and re-circulation of direct impacts within the economy. This re-spending of money can occur multiple times by both individuals and businesses. For example, as airport employees spend their salary for housing, food, utilities, and services, those expenditures circulate through the economy resulting in increased spending, payroll, and employment throughout the region. As this money is spent over and over again, some of it leaks beyond the boundaries of the study area, and thus no longer benefits the inhabitants of that region.

The economic model uses parameters specific to the study region (in this case, California) to estimate the leakage effect associated with these multiplier impacts, thereby tabulating only those impacts that benefit the people and businesses of the study region. Multiplier impacts are the output of the economic model.
 Total Impacts – Total impacts are the sum of all direct and multiplier economic impacts attributable to an airport.

Direct impacts are measured through surveys of businesses, government units, and visitors. Because multiplier impacts are not as easy to measure as direct impacts, they are estimated instead. It is important to employ a reliable method of estimating multiplier impacts and one leading method used to estimate multiplier impacts is the input-output model.

Packet Pg. 809 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
4 ECONOMIC MODEL CREATION AND TESTING
A linear input-output economic impact model was developed using the airport management and tenant survey data, along with visitor information, as inputs for the model. Two sets of inputs were developed – one for 2019 and one for 2021. The model produced multiplier impacts as outputs.

IMPLAN Model Development
The Impact Analysis for Planning (IMPLAN) input-output model was used to quantify multiplier impacts in this study. IMPLAN is a linear model that estimates purchases and sales between hundreds of sectors of the economy. The U.S. Forest Service, in cooperation with several other government agencies, initially developed the IMPLAN system to generate regional non-survey input-output models for regions as small as a single county. This modeling process is considered one of the leading methods currently available for estimating the total economic impact of an industry and has been used to estimate economic impacts for individual airports and systems of airports throughout the country.

The IMPLAN model contains a large economic database used to generate input-output tables. It includes data from sources such as Dun and Bradstreet, the U.S. Department of Commerce, and the U.S. Census Bureau. IMPLAN multipliers and data tables specific to California’s industrial sectors were obtained and used in this analysis. Proper use of this model involves inputting the best economic data available for the industry analyzed.

California IMPLAN data from 2019 data was used to supply multiplier values for RDD. The model was used to estimate total employment, payroll, and economic output for the study years. The model was also used to estimate taxes produced in 2019 and 2021.

Data Collection and Estimates
The process of data collection is described below by the categories of economic impact. Data was gathered for calendar years 2021 and 2019, as available. For data that was unavailable, estimates were developed.

Each impact category (on-airport, visitors, and CIP) required its own tailored approach for data gathering and estimation of missing data.

On-Airport and CIP Data
The data gathering effort focused on information collected through surveys of RDD management and businesses found on the Airport. Other data came from FAA data sources, the Master Plan, and online sources. The economic impact data necessary for the ECA included 2019 and 2021 information for:
 Employment (part-time and full-time jobs)
 Annual operating expenses
 Annual gross revenues (if applicable)
 Annual payroll, salary, and benefit expenditures
 CIP expenditures
Packet Pg. 810 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
5 Airport management and each tenant with employees at RDD were asked to confirm their employment numbers and report their annual sales, payroll, and CIP data they were willing to share through an online survey The airport management survey solicited basic economic impact information – employment, annual payroll, annual operating expenses, and capital expenditures for 2019 and 2021. It also asked about major users of the Airport and the types of aviation activities that took place on the Airport. Finally, the survey sought a list of on-airport businesses and organizations, their point of contact, and their estimated employment levels. The study team contacted each organization by email, requesting that they complete an online airport tenant survey. These surveys requested each tenant to provide a description of their aviation services along with their basic 2019 and 2021 economic impact information – employment, annual payroll, annual operating expenses, annual gross revenues (if applicable), capital expenditures.

This information was interpreted through the economic model to report on how sales, employment, payroll, and capital investment have changed since 2019, the last complete year prior to the COVID-19 pandemic.

In lieu of receipt of an entity’s survey information, several methods were used to retrieve the data. Airport management was asked to provide their best estimate of the part-time and full-time employees at each business that did not respond. Once received, historical industry statistics were used to estimate the financial data for these entities using per employee averages. Data validation is explained in further detail in an upcoming section.

CIP data for RDD was collected from FAA reports and compared to RDD accounting records. Direct employment and associated payroll were estimated from ratios of jobs to CIP spending derived from the IMPLAN model developed for RDD.

Visitor Data
To estimate impacts from visitors, it was necessary to develop estimates of visitor spending for each of the study years. Visitor spending was derived by estimating the annual number of visitors arriving by air and what the average spending was for visitors during their trip to the area. Visitors arriving via commercial airlines were estimated separately from visitors arriving via general aviation aircraft.

Commercial Service Visitor Impacts
Three airlines provide scheduled passenger service to and from RDD. United/SkyWest has multiple departures to San Francisco International and Los Angeles International. Alaska/Horizon Air provides service to SeaTac International. Avelo serves both Las Vegas and Burbank from RDD. Collectively, these airlines offered more than 171,000 seats in 2021 to the RDD market, providing residents of Redding access to destinations in California, the U.S., and the world. They also bring travelers from other parts of the country to Redding to conduct business and participate in leisure activities.

To estimate the number of visitors arriving on these airlines, Mead & Hunt’s proprietary location-based data tool was used. The results were compared to the total enplanements for purposes of evaluating the percentage of destination travelers. The results of this analysis are shown in Table 2.

From this data, it was determined that approximately 25,000 visitors to the Redding region arrive by commercial airline in the years analyzed. When compared to the total enplanements for 2019 and 2021, the percentage of destination travelers ranged from 45 percent to 49 percent. This is a reasonable result for an airport like RDD and its surrounding market, validating the visitor estimate.

Packet Pg. 811 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
6 Table 2: RDD Commercial Service Visitor Spending Estimate Year Enplanements Visitors Destination
Percentage
Average Spending per
Visitor per Trip
Direct Visitor
Spending
2019 51,353 25,350 49% $900 $22,815,000
2021 57,918 25,900 45% $810 $20,979,000
Source: FAA, and Mead & Hunt
The average spending per commercial service visitor was estimated using data from California’s Visitor Economy Travel Forecast & Key Drivers.1 This study provided visitor numbers and spending data for travelers to California based on the market from which the traveler originated. This data included all visitors, not just those using air travel, so the data was adjusted to better reflect the characteristics of air travelers.

Additionally, the spending average was adjusted downward to account for the cost of airline tickets. This was done to avoid double counting the economic benefits that are already credited to airline tenants in the on-airport category.

The data in Table 2 highlights some of the changes that have occurred at RDD post pandemic. Of note is that enplanements and visitors have returned to or exceeded the levels of 2019. With much of the aviation industry not expecting to recover from the pandemic until 2023 or 2024, this is a positive sign for RDD. Also of note is that average spending for commercial service visitors in 2021 has declined approximately 11 percent. This is in line with most studies that have found that leisure travelers, who tend to spend less than business travelers, have returned more quickly than business travelers. With expectations of the aviation industry recovering from the pandemic by 2024, RDD may see business travel return to 2019 levels, and its corresponding spending, in the same timeframe.

The data and estimates for RDD were used to determine that annual visitor spending was approximately $22.8 million in 2019 and $21.0 million in 2021. These spending amounts were used with ratios from the IMPLAN model to estimate the direct jobs and payroll associated with the visitor spending.

General Aviation Visitor Spending
Estimates of general aviation visitor spending were derived from several key inputs. The first needed input was the number of visitors arriving by general aviation aircraft. Mead & Hunt’s proprietary location-based data tool was again used to estimate this number, finding that approximately 17,000 visitors arrived by general aviation aircraft each year. This estimate is in line with general aviation visitors at airports with similar characteristics. The results of this analysis are shown in Table 3.

Table 3: RDD General Aviation Visitor Spending Estimate Year GA Visitors Average Spending per Visitor Direct Visitor Spending 2019 17,450 $270 $4,711,500
2021 17,200 $280 $4,816,000
Source: FAA, IMPLAN, and Mead & Hunt
1 Prepared for Visit California, January 2022. Retrieved from https://industry.visitcalifornia.com/research/travel-forecast on March 11, 2022.

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REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
7 The second key input needed was the average spending per general aviation visitor. Similar to the average spending by commercial service visitors, the general aviation visitor spending average was estimated using data from California’s Visitor Economy Travel Forecast & Key Drivers.2 Greater weighting was given to visitors from the California and other nearby markets to reflect the shorter range of travel of general aviation aircraft on average. This resulted in the average trip spending shown in Table 3. This lower spending amount (compared to the spending of commercial service visitors) is typical of general aviation visitors, reflecting how it is used compared to scheduled airline service. The on-demand nature of general aviation can turn what would be an overnight trip that is beholden to airline schedules into a day trip that eliminates the extra lodging and food costs associated with staying overnight.

From these two key pieces of data, direct general aviation visitor spending was estimated by multiplying the two. The results were approximately $4.7 million of GA visitor spending in 2019, and $4.8 million in 2021. These spending amounts were used with ratios from the IMPLAN model to estimate the direct jobs and payroll associated with general aviation visitor spending. These ratios were similar to the ratios used with the commercial service visitor direct impact estimates but were adjusted to reflect the variations in travel habits and related spending differences between the two groups.

Model Assumptions and Impact Estimate Methodologies
In addition to the data collected for this economic analysis, a number of assumptions were used in assessing the economic impacts of RDD. These assumptions, along with the general methodologies used in estimating each category of economic impact, are detailed in the following sections.

On-Airport and Capital Improvement Direct Impacts
The majority of the direct on-airport impacts came from data provided by the Airport, the businesses, or the government agencies on the Airport. In a small number of cases, incomplete or no data was provided. In these examples, the study team relied on employment estimates from airport management. Then, using an in-house database with the results from the economic impact analysis of thousands of U.S. airports, per employee averages of payroll and output based on the type of business were used to extrapolate the overall payroll and output of the organization.

Capital improvement information for the study years was gathered from the Airport and its business tenants.

This was done because these projects tend to occur irregularly and may take less than a year, or many years, to complete, resulting in peaks and valleys when assessing only a single year. To smooth out the economic impacts associated with the variability of capital improvements, both 2019 and 2021 were used.

The same in-house database was used to estimate capital improvement expenditures where this data was not made available. As stated above, this occurred in a small number of cases and most capital improvement data was provided.
2 Prepared for Visit California, January 2022. Retrieved from https://industry.visitcalifornia.com/research/travel-forecast on March 11, 2022.

Packet Pg. 813 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
8 The average of capital expenditures was used as the capital improvement direct output. This average capital expenditure was then used with a ratio of employment to capital expense from the IMPLAN model to estimate employment associated with these improvements. An average per capita income derived from Bureau of Labor Statistics data was used to estimate the payroll associated with these jobs.

Visitor Direct Impact Estimates
Estimates of jobs and payroll tied to visitor spending were based on a ratio of employment to visitor expenditures from the IMPLAN model and an average per capita income derived from Bureau of Labor Statistics data that averaged results from across California. The ratio of jobs to visitor spending was slightly different for commercial service visitor spending compared to GA visitor spending to reflect the trip characteristics of each group and how that altered their spending habits.

Multiplier Impacts
The initial direct economic impacts from financial transactions are not the only effects that take place within an economy. As explained earlier, initial transactions result in a cascade of follow-on impacts. For example, some of the money an airport rental car company earns renting cars (its direct output) goes to the local bank to pay off part of the loan on the company’s fleet of rental cars, which creates economic output for the bank. The bank then uses some of its revenues to pay for local contracted security services, adding to the output. Eventually, these transactions result in the money leaking beyond the defined boundaries of the study – in this case, the state of California. The number of times that a dollar of output, or a dollar of pay, or a job recirculates through the economy before it leaks is a multiple of the initial input from the airport; hence it is referred to as a “multiplier” impact. Figure 1 illustrates the complex interactions typically occurring in an economy that the IMPLAN model takes into account.

Multiplier impacts are estimated by entering the direct impacts into the IMPLAN input-output model and accounting for the different interactions that various categories of impact have within the area of study. The model determines how many times a measure is multiplied within the boundaries of the study.

The multipliers used in this analysis were developed specifically to measure the economic impacts that occur within different sectors of the California economy. Table 4 summarizes the multipliers used for modeling the multiplier impacts of on-airport activities, capital improvement, and visitor spending. Note that on-airport activities were classified into one of three areas – aviation, concession, or government – based upon the nature of their operation. This was done to more accurately assess the degree to which each organization recirculated its economic influence within the state.

Packet Pg. 814 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment 9
Figure 1: Airport Total Economic Impact Modeling Process Source: Mead & Hunt.

Packet Pg. 815 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
10 Table 4: California Multipliers by Economy Sector
Economy Sector Employment Multiplier Payroll Multiplier Output Multiplier On-Airport: Aviation 2.46 1.92 1.60
On-Airport: Concessions 1.42 1.79 1.99
On-Airport: Government 2.56 2.50 2.06
Capital Improvement 2.01 1.80 2.01
Commercial Service Visitors 1.37 1.57 1.58
General Aviation Visitors 1.24 1.55 1.67
Notes:
- Aviation multipliers are the weighted average of the Air Transportation, Aircraft Manufacturing, Aircraft Engine and Engine Parts Manufacturing, and Other Aircraft Parts and Auxiliary Equipment Manufacturing multipliers. - Concessions multipliers are the weighted average of the Hotels and Motels, Full-Service Restaurants, Limited-Service Restaurants, Retail – Miscellaneous Store Retailers, and Business Support Services multipliers. - Government multipliers are the weighted average of the Other Federal Government Enterprises, and Other Local Government Enterprises multipliers.
- Construction multipliers are the weighted average of the Construction of New Commercial Structures, Asphalt Paving Mixture and Block Manufacturing, Cement Manufacturing, Ready-Mix Concrete Manufacturing, Maintenance and Repair Construction of Nonresidential Structures, and Architectural, Engineering, and Related Services multipliers. - Visitor expenditures multipliers are the weighted average of the Hotels and Motels, Full-Service Restaurants, Limited-Service Restaurants, Retail – Miscellaneous Store Retailers, and Automotive Equipment Rental and Leasing multipliers. Weightings were different for commercial airline service and general aviation visitor multipliers to reflect the difference in their spending habits.

Source: Mead & Hunt and IMPLAN.

Total Impacts
Total impacts consist of the sum of the direct and multiplier impacts. When referring to RDD’s economic impacts, this generally means the total employment, total payroll, and total output of the Airport.

Data Validation and Completion
The data validation effort required checking the survey data against typical values to identify outliers that warranted additional investigation. Historic data from other airports was used to develop per capita ratios of payroll, expenses, CIP expenditures, and output and compare that to the data gathered for RDD. Visitor impacts were compared to similar airports for validation. Outlier results were researched with follow-up calls to the respective organization in search of documentation that leads to correcting the outlier result or an explanation as to why the result is beyond the normal range.

Historical data was also used to estimate survey results that were not reported. For example, if a flight school only reports the number of employees it has, their statistics were supplemented with an estimate of the flight school’s payroll, CIP, and output using per capita data from other flight schools that have provided data from past studies. The data validation task concluded with providing RDD preliminary on-airport and visitor direct impact results for 2019 and 2021, which they reviewed and confirmed.

Packet Pg. 816 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
11 RESULTS
Figure 2 illustrates a summary of the results of the ECA, including the proportion of on-airport, GA visitor, commercial service visitor, and CIP impacts to the total amount of employment, payroll, and output. Detailed analysis of the direct, multiplier, and total impacts follow.

Figure 2: RDD Economic Impacts for 2019 and 2021
Source: Mead & Hunt, Inc. and IMPLAN.

Direct Impacts
The direct impacts for each of the four categories for RDD are further detailed below. The combined total of all the direct impacts are shown in Table 5.

Table 5: RDD Direct Impacts (2019 and 2021)
Direct Impacts
Year Employment Payroll Output
2019 682 $36,936,000 $131,000,000
2021 645 $37,033,000 $129,365,000
Source: Mead & Hunt, Inc. and IMPLAN.

The Airport’s direct impacts were responsible for 682 jobs in 2019 and 645 jobs in 2021 with a combined payroll of $36.9 million and $37.0 million, respectively. The output for 2019 was approximately $131.0 million and $129.3 million in 2021. A general description of what contributed to the impacts in each category follows.

On-Airport Direct Impacts
The 2019 on-airport impacts of the Airport accounted for 391 employees with a payroll of approximately $27 million, producing more than $92.7 million in economic output. In 2021, there were 376 employees with an accompanying payroll of $27.4 million in payroll. The direct output increased to $94.5 million in 2021.

The pandemic resulted in several businesses cutting back on expenses and labor.

Packet Pg. 817 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
12 At RDD, this was especially true among flight schools. Much of the aviation industry is still recovering from the pandemic, but RDD is fortunate in that it has generally experienced a more rapid recovery than many other airports. While employment has not quite recovered to 2019 levels, many businesses are expanding at the Airport, although flight schools are still lagging. Evidence of this is seen in the increased payroll and output, since job growth is coming from sectors other than flight instruction jobs, which tend to be on the lower end of the pay scale. For RDD, the on-airport economic impacts are detailed in Table 6 for the study years.

Table 6: RDD On-Airport Direct Impacts (2019 and 2021)
On-Airport Direct Impacts
Year Employment Payroll Output
2019 391 $27,030,000 $92,742,000
2021 376 $27,491,000 $94,581,000
Source: Mead & Hunt, Inc. and IMPLAN.

Commercial Service Visitor Direct Impacts
The commercial service visitor direct impacts were derived from the estimated spending of those visitors.

As detailed in Table 7, it was estimated that these visitors spent more than $22.8 million in 2019 and $20.9 million in 2021 in California (not including airline fares or rental car expenditures, which are included under the on-airport impacts). Based on an IMPLAN ratio, it was estimated that every $1 million of commercial service visitor spending supported 7.85 jobs. Using Bureau of Labor Statistics (BLS) data for California, it was estimated that these jobs had an average payroll of $30,000 in 2019, and $31,800 in 2021. These estimates resulted in spending by commercial service visitors supporting 179 jobs in 2019 and 165 jobs in 2021 with a payroll of nearly $5.4 million in 2019 and $5.2 million in 2021.

Table 7: RDD Commercial Service Visitor Direct Impacts (2019 and 2021) Commercial Service Visitor Direct Impacts
Year Employment Payroll Output
2019 179 $5,375,000 $22,815,000
2021 165 $5,239,000 $20,979,000
Source: Mead & Hunt, Inc. and IMPLAN.

Capital Improvement Direct Impacts
The direct impacts from CIP activity were based on the data gathered for CIP expenditures. Using an IMPLAN ratio of every $1 million spent on CIP creating 5.44 jobs, and a BLS average of $49,800 in 2019 and $52,000 in 2021 for construction work in California, direct jobs and payroll were estimated for CIP activity.

Table 8 illustrates that RDD and its associated businesses undertook capital improvements in 2019 that resulted in supporting 58 jobs with a payroll of more than $2.9 million. These capital improvements were valued at $10.7 million. In 2021, RDD supported 49 jobs with a payroll of $2.5 million and direct output of nearly $9 million.

Packet Pg. 818 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
13 The Airport was responsible for the bulk of these improvements, using FAA Airport Improvement Program grants and passenger facility charge revenues to improve the access road, rehabilitate the terminal building, reconstruct its taxiway and lighting, purchase equipment, and fund various studies. Other businesses and organizations on the Airport that carried out capital improvements also contributed to these impacts.

Table 8: RDD Capital Improvement Direct Impacts (2019 and 2021) Capital Improvement Project Direct Impacts
Year Employment Payroll Output
2019 58 $2,905,000 $10,731,000
2021 49 $2,541,000 $8,989,000
Source: Mead & Hunt, Inc. and IMPLAN.

General Aviation Visitor Direct Impacts
As was done with the commercial service visitor direct impact, GA visitor direct impacts were based on the estimated expenditures that those visitors made during their trip. The ratio of 11.50 jobs for every $1 million in GA visitor spending was obtained from the IMPLAN model for California. These jobs used the same payroll averages that was explained above for commercial service visitors.

Visitors using privately- or business-owned aircraft contributed an estimated $4.7 million and $4.8 million in direct output through their spending off the Airport in 2019 and 2021, respectively. Table 9 shows this supported an estimated 54 jobs in 2019 and 55 jobs in 2021, yielding a payroll of $1.6 million in 2019 and $1.8 million in 2021.

Table 9: RDD GA Visitor Direct Impacts (2019 and 2021)
GA Visitor Direct Impacts
Year Employment Payroll Output
2019 54 $1,626,000 $4,712,000
2021 55 $1,762,000 $4,816,000
Source: Mead & Hunt, Inc. and IMPLAN.

Multiplier Impacts
When expenditures related to the direct economic impacts discussed above occur, this is only the initial point of entry of this economic activity. These impacts are re-spent over and over again, creating indirect and induced impacts, collectively termed multiplier impacts. The FBO’s fuel purchases support the jobs and economic activity associated with the fuel distributor. FedEx workers that load and unload cargo spend part of their paychecks on groceries, keeping local stores in business and their clerks employed. The restaurants frequented by airport visitors pay local utilities for services, providing employment for utility workers, and so on. Without the direct economic impacts provided by the airport, these multiplier impacts would not exist and many companies would have to scale back business, or even cease operations. Table 10 shows the multiplier impacts for each category.

Packet Pg. 819 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
14 Table 10: RDD Multiplier Economic Impacts
Multiplier Impacts
Category Year Employment Payroll (M*) Output (M*)
On-Airport 2019 557 $28.6 $62.8
2021 534 $29.5 $64.6
GA Visitors 2019 13 $0.9 $3.1
2021 14 $1.0 $3.2
Commercial Service Visitors 2019 66 $3.1 $13.2
2021 61 $3.0 $12.1
CIP 2019 59 $2.3 $10.8
2021 49 $2.0 $9.1
Total 2019 695 $34.9 $89.9
2021 658 $35.5 $89.0
Source: Mead & Hunt, Inc. and IMPLAN.
*Dollar amounts expressed in millions.

The 2019 multiplier impacts account for 695 employees with more than $34.8 million in payroll and more than $89.9 million in economic output. The 2021 multiplier impacts account for 658 employees with more than $35.4 million in payroll and more than $89.0 million in economic output. These impacts are felt throughout California due to the re-circulation of the initial direct impacts.

Total Impacts
The total economic impact of the Airport is the combination of direct impacts and multiplier impacts. Table 11 shows the total economic impact of RDD.

Table 11: RDD Total Economic Impacts
Total Impacts
Category Year Employment Payroll (M*) Output (M*)
On-Airport 2019 948 $55.6 $155.5
2021 910 $57.0 $159.2
GA Visitors 2019 67 $2.5 $7.9
2021 69 $2.7 $8.0
Commercial Service Visitors 2019 245 $8.5 $36.0
2021 226 $8.2 $33.1
CIP 2019 117 $5.2 $21.5
2021 98 $4.5 $18.0
Total 2019 1,377 $71.8 $220.9
2021 1,303 $72.5 $218.4
Source: Mead & Hunt, Inc. and IMPLAN.
*Dollar amounts expressed in millions.

The total economic output of RDD in 2019 was more than $220.8 million and $218.3 million in 2021. The Airport and its related activities supported 1,377 employees in 2019 and 1,303 employees in 2021, found both on and off the Airport. These workers earned a combined total payroll of approximately $71.8 million and $72.4 million in 2019 and 2021, respectively.

Packet Pg. 820 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
15 In the years 2020 and 2021, the City of Redding undertook, on average, more than $670,000 in capital improvements around the Airport. That means that for every dollar in capital investment that the City put into the Airport, the Airport generated $325 in economic output. Similarly, visitors arriving to the Redding region by aircraft produce substantial economic output. The results of this study show that on average, every visitor coming through RDD, whether by commercial airline or general aviation aircraft, produces approximately $950 in economic output.

Tax Impacts
A direct result of the economic impacts stemming from RDD is the generation of sales, income, and property taxes for California and the many municipalities in the state. The study team used IMPLAN to estimate the taxes generated. The IMPLAN analysis of tax impacts considered taxes paid by the direct and multiplier employees at the federal, state, and local level. This primarily consisted of state and county sales taxes, county and municipal property taxes, and state and federal income taxes, but also considered numerous other state and municipal taxes imposed in California. The primary sources of tax proceeds are:
 State income tax – California imposes a progressive state income tax that ranges from one percent up to 13.3 percent.
 Sales tax – California imposes a statewide sales tax of 7.25 percent on applicable purchases. Local jurisdictions may impose additional sales tax, so the total tax can reach as high as 10.75 percent in some places. Shasta County and Redding do not impose additional sales tax, so their rate is 7.25 percent.
 Property tax – Nearly all California property taxes are imposed by counties, cities, schools, and special districts. The rates are determined by the municipality imposing the tax. The only property tax imposed by the state is on private railroad cars not owned by railroad companies.

Table 12 summarizes the estimated tax payments by jurisdiction associated with the type of RDD economic activity in 2019. Table 13 shows the same data for 2021.

Table 12: Taxes Generated by RDD Activity in 2019
Type Local/County State Federal Total
Direct $5,571,331 $6,313,604 $10,213,988 $22,098,923
Multiplier $3,013,262 $4,078,356 $8,293,689 $15,385,306 Total $8,584,593 $10,391,960 $18,507,677 $37,484,229
Source: Mead & Hunt, Inc. and IMPLAN.

Table 13: Taxes Generated by RDD Activity in 2021
Type Local/County State Federal Total
Direct $5,040,937 $5,679,771 $9,057,494 $19,778,202
Multiplier $2,707,838 $3,629,624 $7,305,618 $13,643,080 Total $7,748,775 $9,309,395 $16,363,112 $33,421,282
Source: Mead & Hunt, Inc. and IMPLAN.

Packet Pg. 821 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
16 The tables show that tax proceeds in 2021 are below the levels generated in 2019. This is not surprising, especially since many taxes, such as income tax, are based off financial activity from the prior year. That means that the 2021 taxes are, in part, based on the 2020 economy, which experienced the peak of the pandemic actions. Recovery to 2019 tax levels is likely to occur in the near term.

SUMMARY
The Redding Municipal Airport conducted a study to demonstrate the impact it has on the economy of California. Figure 3 illustrates the measures used in the study to quantify the categories and types of economic impact and summarizes those results for 2019 and 2021.

By analyzing economic impact results from 2019, a pre-pandemic year, RDD has a baseline with which to gauge its recovery. Airports of all sizes and in various locations across the country have had varying levels of negative consequences from the pandemic, with most expecting to recover by 2024 or 2025. Table 14 below illustrates the percent changes in the total impacts from 2019 to 2021 and shows that RDD is well on its way to recovering before 2024.

Table 14: RDD Percent Change in Total Impacts
Total Impacts
Category Year Employment % Change Payroll (M*) % Change Output (M*) % Change On-Airport 2019 948 -4% $55.6 2% $155.5 2% 2021 910 $57.0 $159.2 GA Visitors 2019 67 3% $2.5 8% $7.9 2% 2021 69 $2.7 $8.0 Commercial
Service Visitors
2019 245 -8% $8.5 -3% $36.0 -8% 2021 226 $8.2 $33.1
CIP 2019 117 -16% $5.2 -13% $21.5 -16% 2021 98 $4.6 $18.0 Total 2019 1,377 -5% $71.8 1% $220.9 -1% 2021 1,303 $72.5 $218.4 Source: Mead & Hunt, Inc. and IMPLAN.
*Dollar amounts expressed in millions.

Fortunately, RDD has proven the resilience of its operations by nearly recovering to 2019 economic impact levels despite the challenges that have arisen from changes in airport travel because of the pandemic.

Continued strategic planning for future airport growth and development will augment RDD’s financial resolve and contribute to enhanced economic performance.

Packet Pg. 822 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
17 Figure 3: Summary of RDD Economic Impact Analysis and Results Source: Mead & Hunt, Inc. and IMPLAN.

Packet Pg. 823 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

REDDING MUNICIPAL AIRPORT
Economic Contribution Assessment
18 ACRONYM LIST
ARFF Airport Firefighting
ATCT Air Traffic Control Tower
CIP Capital Improvement Projects
ECA Economic Contribution Assessment
FAA Federal Aviation Administration
FBO Fixed Base Operator
GA General Aviation
IMPLAN Impact Analysis for Planning
RDD Redding Municipal Airport
TSA Transportation Safety Administration
USFS United States Forest Service
Packet Pg. 824 Attachment: RDD Economic Contribution Assessment - Final (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport) Packet Pg. 825
Attachment: NOE Redding Municipal Airport 2022 Strategic Plan (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to development of an Airport Strategic Plan for the Redding Municipal Airport (C-8976):
(1) Adopt Resolution approving the 22nd Amendment to City Budget Resolution No. 2021- 078, appropriating $225,000 for the Airport Strategic Plan; and (2) Approve Authorization of Service No. 21-05 with Mead & Hunt, Inc., for consulting services to develop the Airport Strategic Plan; and
(3) Authorize the City Manager, or designee, to execute the agreement, and any amendments, or additional documentation needed to facilitate the development of the strategic plan.

Fiscal Impact
The cost of the Airport Strategic Plan will be $225,000 including consultant services and staff time. The funding is proposed to be funded by the General Fund.

Alternative Action
The City Council (Council) could choose not to approve the budget resolution appropriating the funds and provide staff with alternate direction to address the surge in air service and the associated demands, as well as capital project needs.

Background/Analysis
The Redding Municipal Airport (RDD) has operated as a commercial service airport for the North State since the late 1940s. Over the years, RDD has had contracts with various air service operators offering service to multiple destinations. To accommodate a change in larger capacity aircraft being used by the airlines, a remodel and expansion of RDD’s Terminal was completed in late 2014. In more recent years, RDD has seen a steady increase in passenger air travel above and beyond United Airlines’ regular three-times daily flight to San Francisco International MEETING DATE: December 21, 2021
ITEM NO. 9.11(f)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.11(f)--Consider Authorization of Service and Resolution to allocate funds for development of an Airport Strategic Plan.

Chuck Aukland, Public
Works Director
Packet Pg. 826 Attachment: Dec 21, 2021 9.11(f) Staff Report (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport) Report to Redding City Council December 16, 2021
Re: 9.11(f)--Airport Strategic Plan Page 2
Airport (SFO). The increase was initiated by the successful addition of United Airlines’ single daily flight to Los Angeles International Airport (LAX) in 2019, which was backed by a revenue guarantee of nearly $1 million dollars. The addition of Avelo Airlines’ service to Hollywood Burbank Airport (BUR) in May 2021, and Alaska Airlines’ daily service to Seattle-Tacoma International Airport (SEA) in June 2021, provided a surge in passenger usage. Beginning January 6, 2022, Avelo Airlines will offer direct service to Las Vegas International Airport (LAS). Additionally, potential air service with United Airlines to Denver International Airport (DEN) could start as soon as the airline is prepared to initiate that service from RDD in the coming years. The possibility of the DEN service is made possible as a result of the successful grant award that will provide a revenue guarantee for United Airlines in the amount of $1.1 Million including $350K in local support. Staff believes that both the LAS and DEN service will generate a large boost in passenger usage.

With this increase of air service, much of the available space in the Terminal has become constrained during times of overlapping flights where the total number of passengers has reached the maximum capacity of the passenger holding room. This is combined with the strain of having only one gate in the hold room, which has to be shared competitively among the three airlines.

The airlines have also been feeling the strain of the Transportation Security Administration’s (TSA) limited capacity which constricts its ability to efficiently screen passengers and bags, thereby leading to long delays for passengers to complete the security screening process. The demand for additional passenger screening lanes, passenger holding areas, larger baggage handling areas requested by the airlines, and limited ticket counter space has presented many challenges. This prompts staff to look at the future needs for the airport, and at interim improvements in the meantime. Increased passenger activity, aircraft size and security requirements necessitate the expansion of the Terminal. In addition, with the additional air service comes increased strain on support services such as car rentals, parking, vending, and other airport related services. All of which are at capacity and limited by space, facilities, and staff support as well as aging infrastructure including the main runway and taxiways.

As such, staff is recommending to the Council to develop a strategic plan for RDD that will focus on economic development, needed facility and capital improvements, which can include both revenue-generating and non-revenue generating projects or programs, and financial resiliency. This plan will be prepared as the aviation industry recovers from the COVID-19 pandemic and at a time when the federal government is making considerable investment in aviation infrastructure. The strategic plan will analyze passenger demand and assess revenue generation and what support might be needed outside of City of Redding staff to achieve these goals. Staff believes that consideration for capital project needs in the next five years, or more, is a critical component of successful airport planning. The strategy will guide development and decision making, and allow the Airport to achieve its goals by continuing to serve as an important economic engine and the airport of choice for Northern California.

Mead & Hunt, Inc., is an on-call aviation consulting firm that provides engineering and design services as well as other airport consulting services for Redding Municipal Airport and Benton Airport. Mead & Hunt, Inc. will complete the attached scope, as part of the strategic plan development process, in approximately 8 months. The strategic plan will provide clear direction on investment of resources to ensure continued success and services for the north state community.

Packet Pg. 827 Attachment: Dec 21, 2021 9.11(f) Staff Report (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport) Report to Redding City Council December 16, 2021
Re: 9.11(f)--Airport Strategic Plan Page 3
Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
Resolution
Mead and Hunt - AOS 21-05 (C-8976) (available online)
Packet Pg. 828 Attachment: Dec 21, 2021 9.11(f) Staff Report (9.2(c)--Consider approval of Airport Strategic Plan for Redding Regional Airport)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions:
(1) Offer Ordinance amending Redding Municipal Code Title 16 (Buildings and Construction), Chapter 16.02 (Building Code) by amending Sections 16.02.010 (California Building Code Adopted); Chapter 16.03 (Residential Code) by amending Section 16.03.010 (California Residential Code Adopted); Chapter 16.04 (Mechanical Code) by amending Section 16.04.010 (California Mechanical Code Adopted); Chapter

16.05 (Plumbing Code) by amending Section 16.05.010 (California Plumbing Code Adopted); Chapter 16.06 (Electrical Code) by amending Section 16.06.010 (California Electrical Code Adopted); Chapter 16.07 (Energy Code) by amending Section 16.07.010 (California Energy Code Adopted); Chapter 16.08 (Green Building Code) by amending Section 16.08.010 (California Green Building Code Adopted); Chapter 16.09 (Housing Code) by amending Section 16.09.010 (International Maintenance Code Adopted), making findings of facts relating to local climatic, geological, and topographic conditions, all relating to the adoption of the CBSC’s for first reading by title only and waive the full reading;
(2) Authorize the City Attorney to prepare and the City Clerk to publish a summary ordinance accordance to law; and
(3) Find that the adoption of the 2022 CBSC and local amendments does not qualify as a project under the California Environmental Quality Act.

Fiscal Impact
Implementation of the 2022 California Building Standards Code will have fiscal impacts to the building industry both statewide and locally. There is no direct General Fund impact with adoption of the ordinance amendments; however, indirect impacts include the costs of training and possible increases in the amount of staff time necessary for enforcement of the new state codes and related revisions. There is the possibility that the increases in construction costs will MEETING DATE: November 15, 2022
ITEM NO. 9.4(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.4(a)--Consider Ordinance adopting the 2022 California Building Standards Code (CBSC) and related amendments to Chapters 16.01 through 16.09 of the Redding Municipal Code.

Jeremy Pagan, Development
Services Director/Bldg
Official
Packet Pg. 829
Report to Redding City Council November 9, 2022
Re: 9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments Page 2 lead to fewer building permits, and, therefore, less building permit revenue.

Alternative Action
The City Council could decline to amend sections of Chapters 16.01 through 16.09 of the Redding Municipal Code, which would adopt new amendments to the California Building Standards Code. This will result in the Redding Municipal Code becoming inconsistent with State Health and Safety Code Section 17922, which mandates enforcement of the most recent version of the California Building Standards Code by local jurisdictions, and it could subject the City of Redding (City) to adverse action by the State of California (State).

Background/Analysis
Code Adoption
The State of California Building Standards Commission (Commission) adopts an updated version of the California Building Standards Code (CBSC) on a three-year cycle with the goal of increased public safety in the built environment. In January 2022, the Commission adopted the 2022 CBSC. It was published in July 2022 and becomes effective throughout the state in January 2023. Enforcement of the CBSC by local jurisdictions is mandated by the California Health and Safety Code.

This code cycle, the Commission adopted, along with amendments, the 2021 International Building Code, the 2021 International Residential Building Code, the 2022 California Green Building Code, the 2021 Uniform Plumbing Code, the 2021 Uniform Mechanical Code, the 2022 California Energy Code, and the 2020 National Electrical Code. Together, these codes constitute the 2022 CBSC.

Experience has demonstrated that when the latest building codes are adopted and properly enforced, losses from catastrophic fire or other natural disasters are reduced. This increased margin of safety is reflected in local insurance rates by the Insurance Services Organization (ISO), which grades the City’s Building Division using the Building Code Effectiveness Grading Schedule (BCEGS). Part of the overall score assigned to the City depends on adoption of the most up-to-date construction codes. The City is currently highly ranked for both residential and commercial construction, scoring a 2 out of 10 in both categories (1 being the highest ranking).

Local Amendments
Because local climatic, geologic, and topographic factors can vary greatly and do directly affect building safety, local amendments to the CBSC are permitted in accordance with Health and Safety Code Sections 13869.7 and 18941.5(b), when justified by findings of fact based on the local climatic, geologic, or topographical conditions. Local jurisdictions may not adopt lesser construction standards than those mandated by the State.

It has typically been the recommendation of staff to keep local amendments to the CBSC to a minimum in an effort to maintain consistency with other jurisdictions throughout the state and not be overly burdensome to the development community. However, there are certain local conditions that warrant a few minor amendments to the CBSC.

Historically, the City’s local amendments to the CBSC include a slightly more stringent snow load, minimum seismic design requirements for reinforced concrete and masonry, and vapor Packet Pg. 830
Report to Redding City Council November 9, 2022
Re: 9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments Page 3 barrier requirements under concrete slabs. Staff recommends keeping these local amendments, but not requiring any new amendments.

Significant Changes
The most significant changes in the 2022 CBSC include new requirements in the 2022 California Residential Code, 2022 California Energy Code, and 2022 California Green Building Standards Code. “Age-in-place” features will be required in new residential construction to facilitate access to operational features and allow people to stay longer in their homes as they age. Building envelope insulation and leakage requirements are stricter in this latest update as well. As California moves to prohibit gas-fired appliances, the installation of appropriate infrastructure to accommodate heat pumps for space and water heating in the future is now required. Solar and battery storage systems will now be mandatory for specific commercial building types. And finally, electrical vehicle charging infrastructure requirements are expanding for residential and non-residential new construction builds.

As with the adoption of any new set of codes, actual impact to the community and increases in construction costs will not be known with certainty until buildings are designed and constructed in accordance with the new codes. Additionally, newer, more complex and expanding code requirements inevitably result in increased administrative time for the Building Division to review, process, and issue building permits.

Environmental Review
Adoption of the 2022 CBSC and local amendments does not qualify as a “project” under the California Environmental Quality Act (CEQA). The adoption of the 2022 CBSC is required by state law and governs the issuance of building permits, which are ministerial in nature, not discretionary. Additionally, while the adoption of the CBSC does have the potential to result in direct and indirect physical changes to the environment (i.e. construction and development projects), those particular projects will be covered separately under CEQA through the entitlement process.

Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
^Draft New Ordinance
^Strikeout Ordinance
Packet Pg. 831

DRAFT NEW ORDINANCE
ORDINANCE NO. _______

AN ORDINANCE OF THE CITY OF REDDING AMENDING REDDING
MUNICIPAL CODE TITLE 16 (BUILDINGS AND CONSTRUCTION),
CHAPTER 16.02 (BUILDING CODE) BY AMENDING SECTION 16.02.010 (CALIFORNIA BUILDING CODE ADOPTED); CHAPTER 16.03
(RESIDENTIAL CODE) BY AMENDING SECTION 16.03.010
(CALIFORNIA RESIDENTIAL CODE ADOPTED); CHAPTER 16.04
(MECHANICAL CODE) BY AMENDING SECTION 16.04.010
(CALIFORNIA MECHANICAL CODE ADOPTED); CHAPTER 16.05
(PLUMBING CODE) BY AMENDING SECTION 16.05.010 (CALIFORNIA PLUMBING CODE ADOPTED); CHAPTER 16.06 (ELECTRICAL CODE) BY AMENDING SECTION 16.06.010 (CALIFORNIA ELECTRICAL CODE ADOPTED); CHAPTER 16.07 (ENERGY CODE) BY AMENDING
SECTION 16.07.010 (CALIFORNIA ENERGY CODE ADOPTED);
CHAPTER 16.08 (GREEN BUILDING STANDARDS CODE) BY
AMENDING SECTION 16.08.010 (CALIFORNIA GREEN BUILDING
STANDARDS CODE ADOPTED); CHAPTER 16.09 (HOUSING CODE) BY AMENDING SECTION 16.09.010 (INTERNATIONAL MAINTENANCE

CODE ADOPTED), AND MAKING FINDINGS OF FACTS RELATING TO

LOCAL CLIMATIC, GEOLOGICAL, AND TOPOGRAPHIC

CONDITIONS, ALL RELATING TO THE ADOPTION OF THE

CALIFORNIA BUILDING STANDARDS CODES
THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS:

Section 1. The City Council of the City of Redding makes the following findings of fact necessary for changes or modifications to the 2022 State Building Standards Code due to local conditions existing in the City of Redding:

A. Changes or Modifications. Pursuant to Section 17958.5, 17958.7 and 18941.5 of the State of California Health and Safety Code, the City of Redding adopts and amends the 2022 edition of the California Building Code, the 2022 edition of the California Residential Code, the 2022 edition of the California Plumbing and Mechanical Codes, the 2022 edition of the California Electrical Code, the 2022 edition of the California Green Building Code and the 2021 edition of the International Property Maintenance Code as they pertain to the regulation of buildings and structures.

B. Findings. Pursuant to Sections 17958.5, 17958.7 and 18941.5 of the State of California Health and Safety Code, the City of Redding has determined and finds the changes or modifications noted herein are needed and are reasonably necessary because of local climatic, geological, and topographic conditions.

Packet Pg. 832 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) C. Local Conditions. Local conditions have an adverse effect on the potential for life and property loss, making necessary changes or modifications to the 2022 California State Building Standards Code in order to establish and maintain an environment which will provide the community a desirable level of protection.

Below are listed adverse local climatic, geological, and topographic conditions:

1. Climatic.
a. Precipitation. The normal rainfall for the City of Redding is approximately

33.6 inches annually. Winter storms are responsible for the heaviest intensity of precipitation, with two-thirds of the rain coming between December and March and 15 percent between April and June. The City typically experiences snow once or twice a year, with depth of less than a foot. Snow depths have attained 18" or more at least twice in the last 100 years. In both cases, there were building failures due to the weight of the snow. Snow in Redding is typically wet and is frequently rained upon.

Drifting snows have not been an issue within the City.
b. Temperature. Summer sunshine is abundant in the Redding area, with over 39 days a year with temperatures of 100 degrees or higher. The Northern California valley sees approximately 200 days of clear skies, with May through September having temperature ranges between 95 and 115 degrees.

Winter temperatures occasionally dip below freezing at night.

2. Geological and Topographic.
a. The City of Redding is located in Shasta County in Northern California. It is approximately 100 miles south of the Oregon border and 160 miles north of Sacramento. Redding’s population in 2010 was approximately 90,000, which makes Redding the largest city in Shasta County, along with being the largest city in California north of Sacramento.

The City encompasses approximately 61 square miles, was founded in 1872, and incorporated in 1887. Much of the downtown area is comprised of construction dating back to the late 1800s and the early 1900s.

Soil conditions often consist of varying types of soils at different depths, leading to saturated soil conditions during winter rains and underground migration of water at all times of the year.
b. The City consists of flat lands, hills, valleys, and ridges. The flatter areas are found in the southeast portion of the City. Most of the existing commercial areas are on relatively flat land.

Packet Pg. 833 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) Residential development occurs in the hilly areas on the west and northeast portions of the City. The majority of the hills in these areas have slopes ranging from 15 to 30 percent. The steeper slopes, west and north of the City, are planned for open-space use.

Elevations are varied within the City and may be 500 feet to 1,000 feet above sea level.
c. The relatively young geological processes that have created earthquakes in California are also active today in Redding. The largest recorded earthquake in the Redding area occurred in 1940, at 5.7 on the Richter scale, and the last in 1998, with a 5.2 on the Richter scale. The ASCE 7 Hazard Tool indicates probabilistic peak ground accelerations (PGA) of 57%g based on design assumptions of a Risk Category II building and a default site soil classification of “D – Stiff Soil”. These are conservative assumptions and typical for buildings within the City’s jurisdiction.

D. Summary. The above local climatic, geologic, and topographic conditions create the potential for excessive water below building slabs, snow loads, and increased seismic hazards. There is a history of problems due to water migration up through floor slabs and into the interior space of buildings in the area as well as failures due to snow loads.

As a result of this "findings of fact," which identifies the various climatic, geological, and topographical elements, the requirements established by the City of Redding within the adopted Redding City ordinances are considered "reasonable and necessary" based on the following:

1. Climatic, geologic, and topographical conditions necessitate the control of moisture migration into buildings.

2. Geologic conditions necessitate proper design for seismic accelerations.

3. Climatic conditions necessitate proper design criteria for snow loads.

Conclusion
Local climatic, geologic, and topographic conditions impact the built environment and necessitate amendments to the California Building Standards Code.

Therefore, it is found to be reasonably necessary that the State Building Standards Code be changed or modified to mitigate the effects of the above conditions. Furthermore, California Health and Safety Code Section 17958.7 requires that the modification or change be expressly marked and identified as to each finding to which it refers. Therefore, the City of Redding finds that the following table provides code sections that have been modified pursuant to the ordinance that are building standards as defined in the Health and Safety Code Section 18909 and the associated referenced conditions or modifications due to local climatic, geological, and Packet Pg. 834 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) topographical reasons:

CBC SECTION NO. LOCAL CLIMATIC, GEOLOGICAL, AND TOPOGRAPHICAL CONDITIONS 1608 1a
1613.3.5 2c
1613.3.5.2 2c
1807.1.5 2c
1807.1.6 2c
2308.4.6 1a
CRC SECTION NO. LOCAL CLIMATIC, GEOLOGICAL, AND TOPOGRAPHICAL CONDITIONS R301.2.2.1.1 2c
R313.2.1.1 1b, 2a
R313.2.2 1b, 2a
R313.2.3 1b, 2a
R404.1.4.1 2c
R404.1.4.2 2c
R506.2.3 1a, 2a
CGBC SECTION NO. LOCAL CLIMATIC, GEOLOGICAL, AND TOPOGRAPHICAL CONDITIONS

4.505.2.1(1) 1a, 2a
Section 2. Title 16 (Buildings and Construction), Chapter 16.02 (Building Code), Section 16.02.010 of the Redding Municipal Code is hereby amended to read as follows:

16.02.010 - California Building Code adopted.

A. That certain document, a copy of which is on file and open for inspection in the City of Redding permit center, marked and designated as "California Building Code (CBC), 2022 Edition, Volumes 1 and 2," published by the International Code Council, is adopted as the building code of the City and is included in and made a part of this code as though set forth at length herein.

1. California Code of Regulations, Title 24, Part 2, California Building Code, Appendix O, Emergency Housing, is adopted as though set forth at length herein excluding therefrom any requirement that an emergency sleeping cabin shall not be less than seventy (70) square feet of interior floor area for one occupant and fifty (50) square feet for each occupant in excess of one (1), and, in lieu of said requirement, establishing that an emergency sleeping cabin shall not be less than Packet Pg. 835 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) sixty-four (64) square feet of interior floor area for one occupant and one hundred (100) square feet for two occupants.

B. Snow load CBC Section 1608 is replaced by the following:
1608.1 General. Design snow loads shall be determined by the Building Official.

C. Add the following exception to CBC Section 1613.2.5:

Exception: Structures not assigned to Seismic Design Category E or F above shall be assigned to Seismic Design Category D.

D. Add the following exception to CBC Section 1613.2.5.2:

Exception: Seismic Design Category shall be determined per exception to Section 1613.2.5.

E. Delete CBC Section 1807.1.5 Exception.

F. Delete CBC Section 1807.1.6.

G. Amend CBC Section 2308.4.6 to read:

Floor, attic, and roof framing shall be laterally supported in accordance with AF & PA NDS Section 4.4.1.2.

Section 3. Title 16 (Buildings and Construction), Chapter 16.03 (Residential Code), Section 16.03.010 of the Redding Municipal Code is hereby amended to read as follows:

16.03.010 - California Residential Code adopted.

A. That certain document, a copy being on file and open for inspection in the City of Redding permit center, marked and designated as "California Residential Code (CRC), 2022 Edition," published by the International Code Council, is adopted asthe residential building code of the City and is included in and made a part of this code as though set forth at length herein.

1. California Code of Regulations, Title 24, Part 2.5, California Residential Code, Appendix AZ, Emergency Housing is adopted as though set forth at length herein excluding therefrom any requirement that an emergency sleeping cabin shall not be less than seventy (70) square feet of interior floor area for one occupant and fifty (50) square feet for each occupant in excess of one (1), and, in lieu of said requirement, establishing that an emergency sleeping cabin shall not be less than sixty-four (64) square feet of interior floor area for one occupant and one hundred (100) square feet for two occupants.

Packet Pg. 836 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) B. Add the sentence "SDS shall be taken as greater than 0.50" to the end of California Residential Code Section R301.2.2.1.1.

C. Section R313.2.1.1 - Other Occupancies.

Section R313.2.1.1 is added to read as follows:

Group S occupancies constructed on private residential zoned parcels shall be designed to NFPA 13D as approved by the fire code official.

D. Section R313.2.2 – Additions.

Section R313.2.2 is added to read as follows:

Additions to any existing California Residential Building Code regulated buildings that increase the existing square footage by 50% or more shall meet the requirements for a newly constructed building. All additions to any existing California Residential Building Code regulated building with an existing automatic sprinkler system regardless of size shall be required to extend the sprinkler system into the addition per Section R313.2.

E. Section R313.2.3 – Remodels, alterations, or repairs.

Section R313.2.3 is added to read as follows:

For remodels, alterations, or repairs to an existing California residential Building Code regulated building involving demolition, removal, alteration, or repair of more than 50% of the structure, the building shall meet the requirements for a newly constructed building.

For purposes of this section, “50%” threshold shall be applied if the project involves any of the following:

1. The removal, demolition, or repair of more than 50% of the exterior weight bearing walls; or

2. The removal, demolition or repair of more than 50% of the roof structure (including the framing, sheathing, and roof covering of a building but not limited to rafters, trusses, beams, purlins); or

3. Where the removal, demolition or repair is deemed by the fire code official to be more than 50% of the structure.

F. Amend CRC Section R404.1.4.1 to read:

Masonry foundation walls. In buildings assigned to Seismic Design Category D0, D1, or D2, as established in Table R301.2(1), masonry foundation walls shall comply with this section. In addition to the requirements of Table R404.1.1(1), plain masonry foundation walls shall comply with the following:

Packet Pg. 837 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments)

1. Wall heights shall not exceed 4 feet (1219 mm).

2. Unbalanced backfill height shall not exceed 3 feet (914 mm).

3. Minimum nominal thickness for plain masonry foundation walls shall be 8 inches (203mm).

4. Masonry stem walls shall have a minimum vertical reinforcement of one No. 3 (No. 10) bar located a maximum of 4 feet (1219mm) on center in grouted cells.

5. Vertical reinforcement shall be tied to the horizontal reinforcement in the footings.

Foundation walls in buildings assigned to Seismic Design Category D0, D1 or D2, as established in Table R301.2(1), supporting more than 3 feet (914 mm) of unbalanced backfill or exceeding 4 feet (1219 mm) in heights shall be constructed in accordance with the provisions of ACI 530/ASCE 5/TMS 402 or NCMA TR68-A. Masonry foundation walls shall have two No. 4 (No. 13) horizontal bars located in the upper 12 inches (305mm) of the wall.

G. Amend CRC Section R404.1.4.2 to read:

R404.1.4.2 Concrete foundation walls. In buildings assigned to Seismic Design Category D0, D1 or D2, as established in Table R301.2(1), concrete foundation walls that support light-frame walls shall comply with this section, and concrete foundation walls that support above-grade concrete walls shall comply with ACI 318, ACI 332 or PCA 100 (see Section R404.1.3). In addition to the horizontal reinforcement required by Table R404.1.2(1), plain concrete walls supporting light-frame walls shall comply with the following:

1. Wall height shall not exceed 4 feet (1219 mm).

2. Unbalanced backfill height shall not exceed 3 feet (914 mm).

3. Minimum thickness for plain concrete foundation walls shall be 6 inches (152 mm).

Foundation walls supporting more than 2 feet (1219 mm) of unbalanced backfill or exceeding 3 feet (2438 mm) in height shall be provided with horizontal reinforcement in accordance with Table R404.1.2(1), and not less than No. 4 (No. 13) vertical bars at a spacing not exceeding 48 inches (1219 mm).

H. Amend the first sentence of CRC Section R506.2.3 to read:

Vapor retarder. A 15-mil polyethylene or approved equivalent vapor retarder with joints lapped not less than 6 inches (152 mm) shall be placed between the concrete floor slab and the base course or the prepared subgrade where no base course exists.

Packet Pg. 838 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) Section 4. Title 16 (Buildings and Construction), Chapter 16.04 (Mechanical Code), Section 16.04.010 of the Redding Municipal Code is hereby amended to read as follows:

16.04.010 - California Mechanical Code adopted.

A. That certain document, a copy being on file and open for inspection in the City of Redding permit center, marked and designated as "California Mechanical Code, 2022 Edition," is adopted as the mechanical code of the City and is included in and made a part of this code as though set forth at length herein.

B. As an amendment to the California Mechanical Code, Sections 104.3.2 and 104.5 and Table 104.5 regarding fees are deleted from this code.

Section 5. Title 16 (Buildings and Construction), Chapter 16.05 (Plumbing Code), Section 16.05.010 of the Redding Municipal Code is hereby amended to read as follows:

16.05.010 - California Plumbing Code adopted.

A. That certain document, a copy of which is on file in the City of Redding permit center, marked and designated "California Plumbing Code, 2022 Edition," is adopted as the plumbing code of the City, and is included in and made a part of this code as though fully set forth at length herein.

B. As an amendment to the California Plumbing Code, Sections 104.3.2 and 104.5 and Table 104.5 regarding fees is are deleted from this code.

Section 6. Title 16 (Buildings and Construction), Chapter 16.06 (Electrical Code), Section 16.06.010 of the Redding Municipal Code is hereby amended to read as follows:

16.06.010 - California Electrical Code adopted.

That certain document, a copy being on file and open for inspection in the City of Redding permit center, marked and designated "California Electrical Code, 2022 Edition," is adopted as the electrical code of the City, and is included in and made a part of this code as though set forth at length herein.

Section 7. Title 16 (Buildings and Construction), Chapter 16.07 (Energy Code), Section 16.07.010 of the Redding Municipal Code is hereby amended to read as follows:

16.07.010 - California Energy Code adopted.

That certain document, a copy being on file and open for inspection in the City of Redding permit center, marked and designated as "California Energy Code, 2022 Edition," published by the International Code Council, is adopted as the energy code of the City and is included in and made a part of this code as though set forth at length herein.

Packet Pg. 839 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) Section 8. Title 16 (Buildings and Construction), Chapter 16.08 (Green Building Standards Code), Section 16.08.010 of the Redding Municipal Code is hereby amended to read as follows:

16.08.010 - California Green Building Standards Code adopted.

A. That certain document, a copy being on file and open for inspection in the City of Redding permit center, marked and designated as "California Green Building Standards Code, 2022 Edition," is adopted as the green building standards code of the City and is included in and made a part of this code as though set forth at length herein.

B. Amend Section 4.505.2.1 (1) to read:

A 4-inch (101.6mm) thick base of ½ inch (12.7mm) or larger clean aggregate shall be provided with a vapor barrier consisting of 15mil polyethylene sheeting, or an approved equivalent, in direct contact with concrete and a concrete mix design, which will address bleeding, shrinkage, and curling, shall be used. For additional information, see American Concrete Institute, ACI 302.2R-06.

Section 9. Title 16 (Buildings and Construction), Chapter 16.09 (Housing Code), Section 16.09.010 of the Redding Municipal Code is hereby amended to read as follows:

16.09.010 – International Property Maintenance Code adopted.

A. That certain document, a copy being on file and open for inspection in the City of Redding Permit Center, marked and designated as "International Property Maintenance Code, 2021 Edition," published by the International Code Council, is adopted as the housing code of the City and is included in and made a part of this code as though set forth at length herein.

B. Section 111.1 is amended as follows:

SECTION 111.1 – UNSAFE STRUCTURES AND EQUIPMENT Unsafe Conditions.

When a structure, premise or equipment is found by the code official to be unsafe, or when a structure is found unfit for human occupancy, or is found unlawful, such structure, premise or equipment shall be deemed immediately dangerous, dangerous, or substandard pursuant to the following provisions and the provisions of Chapter 1.15 of the Redding Municipal Code.

C. Section 111.4 is amended as follows:

SECTION 111.4 - Notice. Whenever the code official has evaluated a structure, premises or equipment under the provisions of the section, notice shall be posted in a conspicuous place in or about the structure affected by such notice and served on the owner, owner’s authorized agent or the person or persons responsible for the structures or equipment in accordance with Title 1.15 of the Redding Municipal Code.

Packet Pg. 840 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) D. Section 111.7 is amended as follows:

SECTION 111.7 - Placarding. Upon failure of the owner, owner’s authorized agent, or person responsible to comply with the notice provisions within the time given, the code official shall post on the premises or on defective equipment a placard stating the condition of the premise or equipment and a statement regarding the occupancy of the premise, operating the equipment or removing the placard.

E. Section 111.7.1 is amended as follows:

SECTION 111.7.1. The code official shall remove the placard whenever the defect or effects upon which the placarding actions were based have been eliminated. Any person who defaces or removes a placard without the approval of the code official shall be subject to the penalties provided by this code.

F. Section 111.8 is deleted.

G. Section 113.2 is deleted.

H. Section 110.4 is amended as follows:

SECTION 110.4 - Failure to comply. Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be subject to citations and fines in accordance with Chapter 1.13 of the Redding Municipal Code.

Section 10. Severability. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council of the City of Redding hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional.

Section 11. The passage of this ordinance is not a “project” according to the definition in the California Environmental Quality Act, and therefore is not subject to the provisions requiring environmental review.

Section 12. This ordinance shall take effect thirty (30) days after the date of its adoption, and the City Clerk shall certify to the adoption thereof and cause publication according to law.

Packet Pg. 841 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City of Redding at a regular meeting on the 15th day of November, 2022, and was duly read and adopted at a regular meeting on the ____ day of __________, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
__________________________________
KRISTEN SCHREDER, Mayor
ATTEST: FORM APPROVED:
________________________________ __________________________________ PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
Packet Pg. 842 Attachment: ^Draft New Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments)

STRIKEOUT ORDINANCE
OLD LANGUAGE: Struck Out
NEW LANGUAGE: Underlined

AN ORDINANCE OF THE CITY OF REDDING AMENDING REDDING
MUNICIPAL CODE TITLE 16 (BUILDINGS AND CONSTRUCTION),
CHAPTER 16.02 (BUILDING CODE) BY AMENDING SECTION 16.02.010 (CALIFORNIA BUILDING CODE ADOPTED); CHAPTER 16.03
(RESIDENTIAL CODE) BY AMENDING SECTION 16.03.010
(CALIFORNIA RESIDENTIAL CODE ADOPTED); CHAPTER 16.04
(MECHANICAL CODE) BY AMENDING SECTION 16.04.010
(CALIFORNIA MECHANICAL CODE ADOPTED); CHAPTER 16.05
(PLUMBING CODE) BY AMENDING SECTION 16.05.010 (CALIFORNIA PLUMBING CODE ADOPTED); CHAPTER 16.06 (ELECTRICAL CODE) BY AMENDING SECTION 16.06.010 (CALIFORNIA ELECTRICAL CODE ADOPTED); CHAPTER 16.07 (ENERGY CODE) BY AMENDING
SECTION 16.07.010 (CALIFORNIA ENERGY CODE ADOPTED);
CHAPTER 16.08 (GREEN BUILDING STANDARDS CODE) BY
AMENDING SECTION 16.08.010 (CALIFORNIA GREEN BUILDING
STANDARDS CODE ADOPTED); CHAPTER 16.09 (HOUSING CODE) BY AMENDING SECTION 16.09.010 (INTERNATIONAL MAINTENANCE

CODE ADOPTED), AND MAKING FINDINGS OF FACTS RELATING TO

LOCAL CLIMATIC, GEOLOGICAL, AND TOPOGRAPHIC

CONDITIONS, ALL RELATING TO THE ADOPTION OF THE

CALIFORNIA BUILDING STANDARDS CODES

16.02.010 - California Building Code adopted.

A. That certain document, a copy of which is on file and open for inspection in the City of Redding Permit Center, marked and designated as "California Building Code (CBC), 2022 Edition, Volumes 1 and 2," published by the International Code Council, is adopted as the building code of the City and is included in and made a part of this code as though set forth at length herein.

1. California Code of Regulations, Title 24, Part 2, California Building Code, Appendix O, Emergency Housing, is adopted as though set forth at length herein excluding therefrom any requirement that an emergency sleeping cabin shall not be less than seventy (70) square feet of interior floor area for one occupant and fifty (50) square feet for each occupant in excess of one (1), and, in lieu of said requirement, establishing that an emergency sleeping cabin shall not be less than sixty-four (64) square feet of interior floor area for one occupant and one hundred (100) square feet for two occupants.

B. Snow load CBC Section 1608 is replaced by the following:

Deleted: 2019
Packet Pg. 843 Attachment: ^Strikeout Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) 1608.1 General. Design snow loads shall be determined by the Building Official.

C. Add the following exception to CBC Section 1613.2.5:

Exception: Structures not assigned to Seismic Design Category E or F above shall be assigned to Seismic Design Category D.

D. Add the following exception to CBC Section 1613.2.5.2:

Exception: Seismic Design Category shall be determined per exception to Section 1613.2.5.

E. Delete CBC Section 1807.1.5 Exception.

F. Delete CBC Section 1807.1.6.

G. Amend CBC Section 2308.4.6 to read:

Floor, attic, and roof framing shall be laterally supported in accordance with AF & PA NDS Section 4.4.1.2.

16.03.010 - California Residential Code adopted.

A. That certain document, a copy being on file and open for inspection in the City of Redding permit center, marked and designated as "California Residential Code (CRC), 2022 Edition," published by the International Code Council, is adopted asthe residential building code of the City and is included in and made a part of this code as though set forth at length herein.

1. California Code of Regulations, Title 24, Part 2.5, California Residential Code, Appendix , AZ, Emergency Housing is adopted as though set forth at length herein excluding therefrom any requirement that an emergency sleeping cabin shall not be less than seventy (70) square feet of interior floor area for one occupant and fifty (50) square feet for each occupant in excess of one (1), and, in lieu of said requirement, establishing that an emergency sleeping cabin shall not be less than sixty-four (64) square feet of interior floor area for one occupant and one hundred (100) square feet for two occupants.

B. Add the sentence "SDS shall be taken as greater than 0.50" to the end of California Residential Code Section R301.2.2.1.1.

C. Section R313.2.1.1 - Other Occupancies.

Section R313.2.1.1 is added to read as follows:

Deleted: C. Delete CBC Section 1905.1.7 and adopt
2019 Los Angeles Area Regional Uniform Code Program
(LARUCP) recommendation 19-01 per the 2019 edition of
the LARUCP.¶
Deleted: D.

Deleted: E.

Deleted: .

Deleted: F.

Deleted: .

Deleted: G.

Deleted: .

Deleted: H.

Deleted: .

Deleted: 2019.

Deleted: X
Deleted: .

Packet Pg. 844 Attachment: ^Strikeout Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) Group
S occupancies constructed on private residential zoned parcels shall be designed to NFPA 13D as approved by the fire code official.

D. Section R313.2.2– Additions.

Section R313.2.2 is added to read as follows:

Additions to any existing California Residential Building Code regulated buildings that increase the existing square footage by 50% or more shall meet the requirements fora newly constructed building. All additions to any existing California Residential Building Code regulated building with an existing automatic sprinkler system regardless of size shall be required to extend the sprinkler system into the addition per Section R313.2.

E. Section R313.2.3– Remodels, alterations, or repairs.

Section R313.2.3 is added to read as follows:

For remodels, alterations,or repairs to an existing California residential Building Code regulated building involving demolition, removal, alteration, or repair of more than 50% of the structure, the building shall meet the requirements fora newly constructed building.

For purposes of this section, “50%” threshold shall be applied if the project involves any of the following:

1. The removal, demolition, or repairs of more than 50% of the exterior weight bearing walls; or

2. The removal, demolition or repair of more than 50% of the roof structure (including the framing, sheathing, and roof covering ofa building but not limited to rafters, trusses, beams, purlins); or

3. Where the removal, demolition or repair is deemed by the fire code official to be more than 50% of the structure.

F. Amend CRC Section R404.1.4.1 to read:

Masonry foundation walls. In buildings assigned to Seismic Design Category D0, D1, or D2, as established in Table R301.2(1), masonry foundation walls shall comply with this section. In addition to the requirements of Table R404.1.1(1), plain masonry foundation walls shall comply with the following:

1. Wall heights shall not exceed4 feet (1219 mm).

2. Unbalanced backfill height shall not exceed3 feet (914 mm).

Packet Pg. 845 Attachment: ^Strikeout Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments)

3. Minimum nominal thickness for plain masonry foundation walls shall be 8 inches (203mm).

4. Masonry stem walls shall have a minimum vertical reinforcement of one No. 3 (No. 10) bar located a maximum of 4 feet (1219mm) on center in grouted cells.

5. Vertical reinforcement shall be tied to the horizontal reinforcement in the footings.

Foundation walls in buildings assigned to Seismic Design Category D0, D1 or D2, as established in Table R301.2(1), supporting more than 3 feet (914 mm) of unbalanced backfill or exceeding 4 feet (1219 mm) in heights shall be constructed in accordance with the provisions of ACI 530/ASCE 5/TMS 402 or NCMA TR68-A. Masonry foundation walls shall have two No. 4 (No. 13) horizontal bars located in the upper 12 inches (305mm) of the wall.

G. Amend CRC Section R404.1.4.2 to read:

R404.1.4.2 Concrete foundation walls. In buildings assigned to Seismic Design Category D0, D1 or D2, as established in Table R301.2(1), concrete foundation walls that support light-frame walls shall comply with this section, and concrete foundation walls that support above-grade concrete walls shall comply with ACI 318, ACI 332 or PCA 100 (see Section R404.1.3). In addition to the horizontal reinforcement required by Table R404.1.2(1), plain concrete walls supporting light-frame walls shall comply with the following:

1. Wall height shall not exceed 4 feet (1219 mm).

2. Unbalanced backfill height shall not exceed 3 feet (914 mm).

3. Minimum thickness for plain concrete foundation walls shall be 6 inches (152 mm).

Foundation walls supporting more than 2 feet (1219 mm) of unbalanced backfill or exceeding 3 feet (2438 mm) in height shall be provided with horizontal reinforcement in accordance with Table R404.1.2(1), and not less than No. 4 (No. 13) vertical bars at a spacing not exceeding 48 inches (1219 mm).

H. Amend the first sentence of CRC Section R506.2.3 to read:

Vapor retarder. A 15-mil polyethylene or approved equivalent vapor retarder with joints lapped not less than 6 inches (152 mm) shall be placed between the concrete floor slab and the base course or the prepared subgrade where no base course exists.

16.04.010 - California Mechanical Code adopted.

A. That certain document, a copy being on file and open for inspection in the City of Redding permit center, marked and designated as "California Mechanical Code, 2022 Edition," is Deleted: 2019.

Packet Pg. 846 Attachment: ^Strikeout Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) adopted as the mechanical code of the City and is included in and made a part of this code as though set forth at length herein.

B. As an amendment to the California Mechanical Code, Sections 104.3.2 and 104.5 and Table 104.5 regarding fees are deleted from this code.

16.05.010 - California Plumbing Code adopted.

A. That certain document, a copy of which is on file in the City of Redding permit center, marked and designated "California Plumbing Code, 2022 Edition," is adopted as the plumbing code of the City, and is included in and made a part of this code as though fully set forth at length herein.

B. As an amendment to the California Plumbing Code, Sections 104.3.2 and 104.5 and Table 104.5 regarding fees is are deleted from this code.

16.06.010 - California Electrical Code adopted.

That certain document, a copy being on file and open for inspection in the City of Redding permit center, marked and designated "California Electrical Code, 2022 Edition," is adopted as the electrical code of the City, and is included in and made a part of this code as though set forth at length herein.

16.07.010 - California Energy Code adopted.

That certain document, a copy being on file and open for inspection in the City of Redding permit center, marked and designated as "California Energy Code, 2022 Edition," published by the International Code Council, is adopted as the energy code of the City and is included in and made a part of this code as though set forth at length herein.

16.08.010 - California Green Building Standards Code adopted.

A. That certain document, a copy being on file and open for inspection in the City of Redding permit center, marked and designated as "California Green Building Standards Code, 2022 Edition," is adopted as the green building standards code of the City and is included in and made a part of this code as though set forth at length herein.

B. Amend Section 4.505.2.1 (1) to read:

A 4-inch (101.6mm) thick base of ½ inch (12.7mm) or larger clean aggregate shall be provided with a vapor barrier consisting of 15mil polyethylene sheeting, or an approved equivalent, in direct contact with concrete and a concrete mix design, which will address bleeding, shrinkage, and curling, shall be used. For additional information, see American Concrete Institute, ACI 302.2R-06.

16.09.010 – International Property Maintenance Code adopted.

Deleted: 2019.

Deleted: 2019.

Deleted: 2019.

Deleted: 2019.

Packet Pg. 847 Attachment: ^Strikeout Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) A. That certain document, a copy being on file and open for inspection in the City of Redding Permit Center, marked and designated as "International Property Maintenance Code, 2021 Edition," published by the International Code Council, is adopted as the housing code of the City and is included in and made a part of this code as though set forth at length herein.

B. Section 111.1 is amended as follows:

SECTION 111.1 – UNSAFE STRUCTURES AND EQUIPMENT Unsafe Conditions.

When a structure, premise or equipment is found by the code official to be unsafe, or when a structure is found unfit for human occupancy, or is found unlawful, such structure, premise or equipment shall be deemed immediately dangerous, dangerous, or substandard pursuant to the following provisions and the provisions of Chapter 1.15 of the Redding Municipal Code.

C. Section 111.4 is amended as follows:

SECTION 111.4 - Notice. Whenever the code official has evaluated a structure, premises or equipment under the provisions of the section, notice shall be posted in a conspicuous place in or about the structure affected by such notice and served on the owner, owner’s authorized agent or the person or persons responsible for the structures or equipment in accordance with Title 1.15 of the Redding Municipal Code.

D. Section 111.7 is amended as follows:

SECTION 111.7 - Placarding. Upon failure of the owner, owner’s authorized agent, or person responsible to comply with the notice provisions within the time given, the code official shall post on the premises or on defective equipment a placard stating the condition of the premise or equipment and a statement regarding the occupancy of the premise, operating the equipment or removing the placard.

E. Section 111.7.1 is amended as follows:

SECTION 111.7.1. The code official shall remove the placard whenever the defect or effects upon which the placarding actions were based have been eliminated. Any person who defaces or removes a placard without the approval of the code official shall be subject to the penalties provided by this code.

F. Section 111.8 is deleted.

G. Section 113.2 is deleted.

H. Section 110.4 is amended as follows:

Deleted: office of the city clerk
Deleted: .

Deleted: 2018.

Deleted: B. Section 103.5 is deleted.¶
Deleted: C. Section 107 is deleted.¶
Deleted: D.

Deleted: .

Deleted: 108.1
Deleted: .

Deleted: 108.1.

Deleted: General
Deleted: .

Deleted: E.

Deleted: .

Deleted: 108.3
Deleted: .

Deleted: 108.3.

Deleted: F.

Deleted: .

Deleted: 108.4.

Deleted: 108.4.

Deleted: G.

Deleted: .

Deleted: 108.4.1.

Deleted: 108.4.1.

Deleted: H.

Deleted: .

Deleted: 108.5.

Deleted: I.

Deleted: .

Deleted: 110.2.

Deleted: J. Section 111 is deleted.¶
Deleted: K.

Deleted: 112.4
Deleted: .

Packet Pg. 848 Attachment: ^Strikeout Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments) SECTION 110.4 - Failure to comply. Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be subject to citations and fines in accordance with Chapter 1.13 of the Redding Municipal Code.

Deleted: 112.4.

Packet Pg. 849 Attachment: ^Strikeout Ordinance (9.4(a)--Ordinance- 2022 CA Building Standards Code and Related Amendments)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept Redding Electric Utility’s Fiscal Year 2022-23 First Quarter Financial Report and Industry Activities Update.

Fiscal Impact
There is no fiscal impact related to accepting this report.

Alternative Action
The City Council (Council) could choose not to accept the report and provide further direction to staff.

Background/Analysis
The September quarterly Financial Report (attached) shows Redding Electric Utility (REU) performed better than what was budgeted primarily due to savings in System Operation and Maintenance (O&M). The cash reserve balance is within the City Council’s Financial Management Policy and is in line with REU’s five-year financial plan which was presented to the Council on September 20, 2022.

This financial report contains unaudited results through September 30, 2022, and provides yearto-date comparisons to the current budget and the same year-to-date results for the prior year.

Operating revenues are reported as billed. Costs for energy, other operating expenses, and capital outlay are recorded when paid. Debt service will be paid twice this year (in December and June).

For this report, debt payments are spread evenly over the year, giving a more helpful picture of the financial results. These recorded results are preliminary and subject to revision until the final audit is complete.

MEETING DATE: November 15, 2022
ITEM NO. 9.5(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(d)--Consider Redding Electric Utility's Quarterly Financial Report and Industry Activities Update.

Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 850
Report to Redding City Council November 7, 2022
Re: 9.5(b)--Electric Utility's Quarterly Report - 1st Quarter Page 2 Projections are based on normal weather trends and known industry activity. If actual weather conditions are above or below average for the month or unexpected industry disruption occurs, revenue and expenses will increase or decrease accordingly. REU’s residential and small commercial rate structures are heavily weighted on volumetric charges ($/kWh), and abnormal weather causes more significant variances in net operating results, which emphasizes the difference between the rate structure and cost structure.

Revenue
Billed retail revenue for the quarter was $3,669,634 (9.4 percent) above budget primarily due to weather (August and September were warmer than the previous four years and resulted in more energy usage). Total wholesale sales for the quarter were $6,581,151 (155.2 percent) above budget. Overall, operating revenue for the quarter came in $10,273,161 (22.8 percent) above budget. On balance, operating revenue after energy costs was $542,055 (2.1 percent) below budget. The decrease in margin compared to prior years is primarily due to REU’s power cost increasing due to uncontrollable factors, including the ongoing drought, inflation, and geopolitics. The primary driver for increased wholesale sales were sales into the California Independent System Operator (CAISO) and monthly natural gas sales.

Expenses
Power Cost (Cost of Energy)
The combined costs for generation, purchases from the Western Area Power Administration (WAPA), Big Horn Wind Project, contracts, and the spot market were $10,815,215 (56.9 percent) above budget projections for the quarter. The cost of Redding Power Plant generation was higher than forecast due to an increase in load, the ongoing drought’s impact on hydro deliveries, the price of natural gas due to the war in Ukraine, and the inclusion of gas purchases for wholesale energy sales. The total cost of energy for the first quarter increased by $5,490,736 (22.6 percent) year-over-year.

System Operations & Maintenance (O&M)
System O&M costs for the quarter were $1,723,184 (13.0 percent), below projections.

Approximately half of these savings are attributable to employee vacancies (realized savings).

Other factors are the delay of expenditures and activities until future quarters (unrealized savings).

Debt Service and Capital Outlay
Debt service payments and obligations for the quarter totaled $3.6 million (on plan). Capital expenditures for the quarter totaled $5.4 million (26.6 percent spent), including a $2.5 million payment to Motorola as part of the SB901 Wildfire Technology Program.

Special Fund Expenditures
Special Fund Expenditures include the expenditures for Public Benefit and Cap-and-Trade Programs, which totaled $1,033,862 (9.8 percent spent) through the first quarter. Encumbrances total approximately $2.6 million (projects in progress), which is included in REU’s remaining Special Fund budget of $9.6 million.

Packet Pg. 851
Report to Redding City Council November 7, 2022
Re: 9.5(b)--Electric Utility's Quarterly Report - 1st Quarter Page 3 Electric Utility Unrestricted Cash Balance
The unrestricted cash balance at the end of the quarter was $48.4 million and represented approximately 144 days of cash. REU’s Financial Management Policy (Council Policy 1414) has a minimum of 75 days of cash and a goal of 150 days of cash.

Director’s Contingency Fund
The REU Director’s Contingency Fund was not utilized through the first quarter.

Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
c: Allyn F. Clark, Finance Director
Attachments
^Attachment 1 - Notes on Financial Operating Statement
^Attachment 2 - Electric Utility Financial Results for Sep 2022 ^Attachment 3 - Electric Utility Financial Dashboard for Sep 2022 ^Attachment 4 - Electric Utility Unrestricted Cash Balance Sep 2022 ^Attachment 5 - Industry Update
Packet Pg. 852
City of Redding Electric Utility
Quarterly Financial Report
Notes on Financial Operating Statement
Operating revenues are divided into three revenue elements: Retail Sales are sales of electricity to end-use customers; Wholesale Sales are to customers who resell electricity; Other Revenue includes the sale of services, joint-pole arrangements, interest income, and other miscellaneous revenue generated in the operations of Redding Electric Utility (REU).

Operating Expenses are divided into two expense elements: Power Cost and System O&M.

Cost of Energy summarizes Purchased Power costs. The primary sources of purchased power include Western Area Power Administration deliveries and long-term contracts for Wind Energy through M-S-R. Fuel expenses, purchases from the spot market, and expenses associated with participation in the California Independent System Operator make up the remainder. The Generation and Transmission component comprises power plant variable costs (fuel) and fixed costs (all non-fuel costs), as well as all JPA costs (M-S-R and TANC), except Wind Energy.

The Wholesale Sales and Power Costs budgets are based on known contracts and confirmed resources. Throughout the year, an effort is made to provide the most cost-effective energy supply for our ratepayers. This is often done by buying and selling natural gas or electricity to reduce the overall cost. This could include selling natural gas and replacing it with electricity that is less expensive than burning the gas in our power plant. It could also include selling energy we have contracted for at one trading hub and buying it at another less expensive trading hub. It could also include maximizing the value of our gas storage facility to purchase natural gas in one month when it is less expensive and use it or sell it in another month. All these transactions benefit our customers but significantly inflate the Wholesale Sales and Cost of Energy numbers over their original budgets. This is because accounting rules require us to record these transactions at their gross revenue and expense amounts and not on the net benefit to the Utility.

System O&M Expenses summarize costs for all other functional groups, i.e., Administration, Customer Services, Engineering, Financial Services, Line, Compliance, and Resources.

Special Revenue funds, i.e., Public Benefits and Cap-and-Trade, are shown separately.

Debt Service is paid twice per fiscal year, once in December and again in June.

Capital Outlay includes current-year appropriations and unfinished projects approved by Council in prior years.

Attachment 1
Packet Pg. 853 Attachment: ^Attachment 1 - Notes on Financial Operating Statement (9.5(b)--Electric Utility's Quarterly Report - 1st Quarter) ELECTRIC UTILITY FINANCIAL RESULTS ‐ SEPTEMBER 30, 2022 YTD‐Actual YTD‐Budget Variance Variance YTD‐Actual
September September % Value September
Item FY2023 FY2023 FY2023 FY2023 FY2022
Energy
System Load (MWh) 259,303                                                 235,586 10.1% 23,717                                                    257,407 Operating Revenues
Retail Sales 42,540,634                                       38,871,000 9.4% 3,669,634                                         41,889,680 Wholesale Sales 10,821,042                                         4,239,891 155.2% 6,581,151                                           7,489,023 Miscellaneous Income 2,060,553                                           2,038,178 1.1% 22,375                                                    844,457 Total Operating Revenues 55,422,229                                     45,149,068 22.8% 10,273,161                                     50,223,160 Operating Expenses
Power Cost
Purchased Power 11,508,517                                         5,193,626 121.6% 6,314,891                                           7,462,868 Generation, Transmission and JPA (Variable) 12,536,136                                         6,889,991 81.9% 5,646,145                                           9,761,107 Generation A&G and O&M (Fixed) 5,784,473                                            ‐ 6,930,293 16.5% (1,145,821)                                          7,114,415 Subtotal Power Cost                  29,829,125                   19,013,910 56.9% 10,815,215                                     24,338,390 System O&M
General & Administrative 1,427,927                                            ‐ 1,875,290 23.9% (447,363)                                             1,345,684 Payment in Lieu of Tax 1,561,700                                           1,561,700 0.0% 0                                                           1,366,000 Transmission & Distribution 6,387,103                                            ‐ 7,240,804 11.8% (853,701)                                             5,834,774 Customer & Field Services 2,179,845                                            ‐ 2,601,965 16.2% (422,120)                                             1,800,045 Subtotal System O&M 11,556,575                                      ‐ 13,279,759 13.0% (1,723,184)                                      10,346,503 Total Operating Expenses 41,385,700 $                $                32,293,669 28.2% 9,092,031 $                  $                34,684,893 Net Operating Revenue 14,036,529 $                $                12,855,400 9.2% 1,181,129 $                  $                15,538,266 Total Debt Service 3,599,798 $                  $                  3,607,285 0% (7,487) $                         $                  3,219,061 YTD‐Actual Budget % of Budget Budget YTD‐Actual
September Annual Spent Remaining September
Item FY2023 FY2023 FY2023 FY2023 FY2022
Capital Outlay
Capital Outlay (Revenue Funded) 5,                      431,810                    20,416,470 26.6% 14,984,660                                         5,155,304 Capital Outlay (Bond Funded)
Total Capital Outlay 5,431,810 $                  $                20,416,470 26.6% 14,984,660 $                $                  5,155,304 Special Fund Expenditures
Public Benefit Programs 695,221                                              3,072,090 22.6% 2,376,869                                           1,315,627 Cap‐and‐Trade Programs 338,641                                              7,517,860 4.5% 7,179,219                                           1,532,859 Total Special Fund Expenditures 1,033,862 $                  $                10,589,950 9.8% 9,556,088 $                  $                  2,848,486 Financial Results 3,971,059 $                  $                  4,315,416 Council Report
Packet Pg. 854 Attachment: ^Attachment 2 - Electric Utility Financial Results for Sep 2022 (9.5(b)--Electric Utility's Quarterly Report - 1st Quarter) ELECTRIC UTILITY FINANCIAL DASHBOARD ‐ SEPTEMBER 30, 2022 ‐0.3

2.1 3.7
(2)
‐
2 4
6 8
10 12
14 16
18 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$‐Millions
Retail Sales ($‐Millions)
Cummulative Difference 2022 Actual 2023 Actual 2023 Budget 1.6 3.7 9.1 ‐
2 4
6 8
10 12
14 16
18 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$‐Millions
Operating Expense ($‐Millions)
Cummulative Difference 2022 Actual 2023 Actual 2023 Budget Packet Pg. 855 Attachment: ^Attachment 3 - Electric Utility Financial Dashboard for Sep 2022 (9.5(b)--Electric Utility's Quarterly Report - 1st Quarter) Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Unrestricted Cash - 2022-23 43.7 45.7 48.4Unrestricted Cash - 2021-22 52.0 57.6 58.4 59.1 54.0 54.7 53.2 52.7 52.9 48.0 44.2 44.9

40.045.050.055.060.065.070.075.0
MILLION $

REU UNRESTRICTED CASH BALANCE
JULY 2021 ‐ JUNE 2023
Packet Pg. 856
Attachment: ^Attachment 4 - Electric Utility Unrestricted Cash Balance Sep 2022 (9.5(b)--Electric Utility's City of Redding Electric Utility
Industry Activities Update – November 2022
Federal Legislation Update
The 2022 federal elections remain very speculative regarding which party will either maintain control or gain control of both the Senate and the House of Representatives. Depending upon which pollsters one listens to, the House could fall into the red category, and the Senate will remain blue by a very close margin.

The Inflation Reduction Act of 2022 has significantly changed the landscape for energy projects by expanding the scope and benefit of investment tax credits. It will likely have far-reaching impacts on new investments in clean energy projects. California energy markets will likely be affected as renewable projects can now earn Production Tax Credits and maintain costeffectiveness in negative energy markets. Tax credits are now extended to public utilities, and we may see a shift from power purchase agreements to utility-owned renewable projects.

As renewables become more cost-effective, transmission and electric infrastructure is a growing concern nationwide. Renewable projects are outpacing the expansion of the transmission systems, and many projects are being held up queues as capacity concerns are addressed.

The Balancing Authority of Northern California (BANC) is currently developing Resource Adequacy principles to ensure balancing area reliability and to satisfy potential requirements for participation in the California Independent System Operator (CAISO) Extended Day-Ahead Market (EDAM).

State Legislative Update
The 2022 Legislative Session was incredibly busy with energy and water-related issues. With the enormous budget surplus, the Governor and legislators provided additional funding to customers for past-due bills while also focusing on climate policy and energy reliability. More than $8 Billion was targeted for energy programs that mainly addressed summer reliability, projects for drought, and climate resiliency.

The Governor also successfully championed legislation that extends the life of the State’s last nuclear power plant, Diablo Canyon, for an additional five years. This 2500 MW plant is critical for summer load and would assist in reliability.

In addition, the Governor worked with the legislators to establish a new interim clean target on the way to 100% clean energy by 2045.

The 2022/23 Legislative Session will be very busy, and there will be more than 30 new legislators. It will be a challenge to ensure that they understand the energy and water issues confronting them and our State.

Packet Pg. 857 Attachment: ^Attachment 5 - Industry Update (9.5(b)--Electric Utility's Quarterly Report - 1st Quarter) The State has made clear intentions to push toward the electrification of the utility and transportation sectors. The California Energy Commission (CEC) has adopted updated load forecasts that include electrification and indicate net load growth, whereas earlier models showed a constant decline. The California Public Utilities Commission and CAISO have also agreed to use higher levels of electrification in their transmission planning efforts.

The State has adopted new planning goals which accelerate offshore wind developments to 3,000 MW online by 2030.

Among many other energy and water-related bills, the State Legislature and Governor signed the following bills pertaining to public utility operations:
• AB 209 – A new collaborative CEC process will establish planning reserve margin recommendations for Publicly Owned Utilities (POUs) within the ISO (the City of Redding is not in the ISO).
• AB 205 – A new CEC report will examine POUs and load-serving entities handling of summer 2022 reliability.
• SB 1020 – Utilities and the State must plan for interim clean energy targets, and the State Water Project also has a new clean energy procurement obligation. • SB 1158 – CEC hourly reporting requirement for POUs that file an Integrated Resource Plan
• AB 2700 – POUs must consider zero-emission vehicle data in distribution planning to facilitate the grid’s readiness for electric vehicles.
• AB 2061 – When receiving State Electric Vehicle (EV) funds, there is a new obligation to report EV charger uptime, which may be subcontracted out to the charging company. • SB 1112 – POUs must now report any building decarbonization charges on customer bills to the County Recorder.
• AB 1765 – POUs with an internal ratepayer advocate can issue rate reduction bonds without State-level review.

Packet Pg. 858 Attachment: ^Attachment 5 - Industry Update (9.5(b)--Electric Utility's Quarterly Report - 1st Quarter)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following relative to the design, funding, permitting, engineering, and construction of improvements at South City Park:
(1) Approve the conceptual plan;
(2) Authorize the submission of an Outdoor Recreation Legacy Partnership application in the amount of $3.5 million to begin phase one construction of the South City Park improvements; and
(3) Authorize the City Manager, or designee, to execute all documents necessary to complete the Outdoor Recreation Legacy Partnership Program application process, appropriate funds, should the grant be awarded, and execute any agreements necessary to implement the project.

Fiscal Impact
Approving the conceptual plan has no direct fiscal impact. This decision will set a course in motion to secure the funding necessary to construct this park design.

The Outdoor Recreation Legacy Partnership (ORLP) Program grant application will request up to $3.5 million to begin phase one construction of the South City Park (Park) improvements. The program requires a 50 percent match, which will be sourced from the CDBG Section 108 Loan authorized by the City Council (Council) at the November 1, 2022 meeting and additional park development and grant funds. Funding for phase two elements of the project will require alternate funding sources or additional grants.

Alternative Action
The Council could choose to not approve the conceptual plan, decline to apply for the funds under this grant opportunity, or provide staff with alternative direction.

MEETING DATE: November 15, 2022
ITEM NO. 9.6(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(c)--Consider conceptual plan and authorize submittal of the Outdoor Recreation Legacy Partnership Grant Application for South City Park in the City of Redding.

Kim Niemer, Community
Services Director
Packet Pg. 859
Report to Redding City Council November 9, 2022
Re: 9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park Page 2 Background/Analysis
South City Park, Redding’s oldest park, is nearly 100 years old and is uniquely poised to serve the community. It has, within its boundaries, a baseball field, bocce ball courts, tennis courts, a basketball court, walkways, and open grassy areas for picnicking, sitting, and other informal uses. In recent years, community utilization decreased, and the Park needed revitalization to return to its original vibrancy. On November 16, 2021, staff presented a proposal to the Council, recommended by the Community Services Advisory Commission, to conduct a broad community engagement effort regarding the future of the Park.

Since the City Council approved a thorough community process to address the future of the Park in November 2021, the Community Services Department has launched a series of engagements.

Three open houses were conducted — two in-person and on-site and another through Zoom.

Community Services Department staff led discussions and used pop-up boards to collect data that reflects the priorities of the community. Staff also created an online survey in order to reach greater community engagement and reach those who were not able to be heard or were unable to attend open houses. From December 1 through January 19, the public survey collected over 1,300 responses. Results highlighted the difficulty in accessing the park by foot or bike and the perception of a current lack of safety when utilizing the Park.

Staff retained the services of Project for Public Spaces (PPS), a multi-disciplinary firm that has facilitated many public placemaking community engagement efforts, published multiple studies and reports on the subject, and assisted communities in reactivating neglected public spaces. PPS made two extended site visits and convened over a dozen focus groups as well as key interviews.

At the June 16, 2022, meeting, the Council approved a concept to reimagine the Park and authorized staff to refine the concept, develop a program, and estimate project costs with PPS.

The consideration for today is the updated conceptual plan, including a revised layout including:
• Arrival and activities plaza (7,300 sq. ft.)
• Destination playground (25,200 sq. ft.)
• Multi-use pavilion (4,500 sq. ft.)
• Covered porch (1,600 sq. ft.)
• Flex lawn (26,500 sq. ft.)
• Pickleball Courts (17,280 sq. ft.)
• Youth area (12,000 sq. ft.)
• Fenced dog area (6,000 sq ft.)
The design draws from over 40 years of placemaking work in communities large and small, focused on bringing neglected and underutilized spaces back to life. It layers a variety of activities, age groups, active and passive uses, and schedules to build an attractive and active public space. The design for the Park creates a new focal entry point, a circulation pattern, an arrangement of activity spaces, and other necessary features such restrooms, storage, tables, chairs, benches, bike racks, and portable play items.

The suggested program matrix (page 28-31) includes a variety of daily, weekly, monthly, and annual events with seasonal offerings such as musical performances, specialty markets, lawn game tournaments, chili cook-offs, Paesano Days, Library programs, and more.

Packet Pg. 860
Report to Redding City Council November 9, 2022
Re: 9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park Page 3 Construction costs are estimated at $8-$10 million which exceeds the existing $2.5 million budget, and staff is seeking additional funding to begin engineering and construction of the plan.

The ORLP is a National Park Service (NPS) grant program focusing on communities with little to no access to nearby, publicly available, outdoor recreation opportunities in urban areas. The program funds the acquisition or development of new parks and substantial park renovations in economically disadvantaged cities or towns of at least 30,000 people.

ORLP includes two competitive processes. California’s Department of Parks and Recreation reviews applications, selects finalists, and then forwards the finalists to the National Park Service for a nationwide review. Applications are due December 15, 2022, and the estimated award date is January 1, 2024. The application will request approximately $3.5 million to implement phase one of construction, which could include features such as the playground, pickleball courts, flex lawn, entry plaza, and youth area. Staff anticipates needing additional funding sources for the remaining project elements that will be considered by Council at a future meeting.

Environmental Review
This action is not a project as defined under the California Environmental Quality Act (CEQA), and no further action is required. Environmental studies are in progress for South City Park, and both CEQA and National Environmental Policy Act (NEPA) determinations will be made prior to construction. Staff is required to complete both the CEQA and NEPA documentation before applying for the program.

Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” • Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
Project for Public Spaces Final Report
Packet Pg. 861
South City
Park: Design
and Activation
Redding, California
November 2022
pps.org
Packet Pg. 862 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 2 Project for Public Spaces – South City Park – Redding, CA Packet Pg. 863 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 3 Table of Contents
Part One: Placemaking
6 Project Overview
8 Access
9 What Makes a Great Place
12 Engagement
Part Two: Visioning
16 Park Vision
17 Power of 10+
18 Major Themes
21 Overcoming Challenges
Part Three: Activation & Design
26 Programming
28 Calendar of Events
30 User Experience Diagrams
32 Park Destinations
60 Full Plan and Schematic Design
New!
Packet Pg. 864 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 4 Project for Public Spaces – South City Park – Redding, CA 6 Project Overview
8 Access
9 What Makes a Great Place
12 Engagement
Part 1:

Placemaking
Packet Pg. 865 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 5 This chapter includes context for South City
Park, an introduction to Project for Public
Spaces’ Placemaking process, and a summary
of our engagement.

Packet Pg. 866 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 6 Project for Public Spaces – South City Park – Redding, CA Project Overview
An Introduction to the Park’s Location and Context
South City Park has the potential to be the urban
park jewel of Redding. Located within walking
distance of revitalizing downtown Redding and
over 1000 homes, Redding City Hall, and in direct
proximity to the Redding Library and Tiger Field,
the park can become an attractive, dynamic,
vibrant community destination.

Three years ago it was fenced and use has been
limited. The City of Redding is committed to
re-developing South City Park to better serve
the needs of current residents and others for
decades to come.

The new South City Park will be both a lush,
modern front porch and a relaxing backyard
for residents of Redding: a place to play, gather,
celebrate, exercise and play sports or cool off
in the shade. It will offer a new destination for
families, active recreation spaces, and intimate
garden experiences along with year-round
activities, performances, festivals, games, food
and markets in a light, multi-use pavilion.

Transforming South City Park into a stronger
community destination is a testament to the
City of Redding’s desire to explore a different
kind of park space in this part of town. While not
large in size, the park can once again become
a great place for families, youth and seniors to
enjoy, demonstrating the City’s commitment
to quality of life and to an inviting, dynamic
and convivial urban park experience close to
downtown.

An evolving space, the renovated park is
intended for families with children, nearby
residents, seniors, youth, sports clubs and
leagues, library patrons, downtown residents,
and the people of Redding in general. As more
activities and destinations attract regular users
here on a daily basis, the park will succeed by
allowing room for flexibility as community needs
and park audiences grow and evolve.

Packet Pg. 867 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 7 Overhead view of South City Park
Packet Pg. 868 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 8 Project for Public Spaces – South City Park – Redding, CA Access
Placing activity with an understanding of the space
View from the Safeway to the South City Park
entrance with skinny sidewalks, 6 car lanes, and
no crosswalk
One of our initial steps is to study the space to understand how visitors would engage, see, and learn about South City Park and all the upcoming exciting activities it will have to offer. Visual access, in addition to physical connection, was a major consideration in locating programs and activities that were discussed during engagement. We know that a good public place actually starts on the street. Someone that hasn’t seen a calendar of events, an e-newsletter, or other important outreach should still be able to recognize that something interesting is happening in the park.

An active and welcoming outer park is essential to the well-being of the inner park. Developing an identity strategy for the streets surrounding the South City Park will lead people from the surrounding areas into the Park.

Packet Pg. 869 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 9 KEY ATTRIBUTES

INTANGIBLES

MEASUREMENTS

SOCIABILITY

ACCESS & LINKAGES COMFORT & IMAGE

USES & ACTIVITES

SUSTAINABLE

CELEBRATORY

INDIGENOUS
USEFUL
REAL

SPECIAL
VITAL
ACTIVE

FUN HISTORIC

ATTRACTIVE

CHARMING

SPIRITUAL

SITTABLE

WALKABLE
GREEN
CLEAN
SAFE

CONTINUITY

PROXIMITY

CONNECTED

READABLE

WALKABLE

CONVENIENT

ACCESSIBLE

WELCOMING

INTERACTIVE

FRIENDLY
PRIDE

NEIGHBOURLY

COOPERATIVE

STEWARDSHIP

DIVERSE

RETAIL SALES

RENT LEVELS

PROPERTY
VALUES

LAND USE

PATTERNS

LOCAL BUSINESS

OWNERSHIP
CRIME

STATISTICS

SANITATION
RATING

CONDITIONS

BUILDING

ENVIRONMENTAL
DATA

NUMBER OF
WOMEN

CHILDREN AND

ELDERLY

NETWORKS
SOCIAL

VOLUNTEERISM

EVENING USE

STREET LIFE

TRAFFIC
DATA

MODE SPLITS

TRANSIT USAGE

PEDESTRAIN

ACTIVITY

PARKING USAGE

PATTERNS
PLACE
What makes a great place?
In his studies of public space, William H. Whyte
observed the key indicators of a great place. These
places have a high proportion of people in groups
and a wide variety of activities. People show
affection to one another there, and a variety of
users feel welcome.

When people describe such places, words like “safe,” “fun,” and “welcoming” come up repeatedly.

These types of adjectives describe the intangible qualities of a particular space. Intangible qualities can be measured quantitatively by using existing statistics or by conducting new research.

In studying more than 3000 public spaces around the world, PPS has found four key qualities that generate these patterns of behavior, emotion, and measurable outcomes in public space (see Place Diagram, above). Great places are sociable, have a variety of uses and activities, are well-connected to their surroundings, and are comfortable and welcoming. The most successful spaces always have all four characteristics.

Packet Pg. 870 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 10 Project for Public Spaces – South City Park – Redding, CA Activities are the basic building blocks of great
places: They are the reason why people visit in
the first place, and why they continue to return.

They are also what makes a place special or
unique. When there is nothing to do in a place, it
will sit empty and unused‚ a sure sign something
needs to change.

ACCESS & LINKAGES USES & ACTIVITIES
Access means how well a place is connected to
its surroundings, both visually and physically.

Accessible places are conveniently reached
on foot or by bike. Transit should be nearby
in communities that have it, and in those that
don’t, high-turnover parking can ensure access
without sacrificing the area parking facilities.

Packet Pg. 871 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 11 There is something unmistakably special
about a public space that fosters socialization.

When people see friends, meet and greet their
neighbors, and feel comfortable interacting with
strangers, they tend to feel a stronger sense of
space and attachment both to their community
and to the public space.

The success of a public space depends on
whether people find it comfortable and maintain
a positive image of it in their minds. This positive
perception includes considerations of safety,
cleanliness, and the availability of places to sit.

The importance of giving people the choice to
sit where they want cannot be overstated.

COMFORT & IMAGE SOCIABILITY
Packet Pg. 872 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 12 Project for Public Spaces – South City Park – Redding, CA Since the City Council approved a thorough community process to address the future of South City Park in November 2021, the Community Services Department has launched a series of engagements. Three open houses were conducted — two inperson and on-site, and another over Zoom. Community Services led discussions and used pop-up boards to collect the priorities of the community. They also created an online survey in order to reach greater numbers than were able to be heard or were unable to attend open houses. From December 1 - January 19, the public survey collected over 1,300 responses. Results highlighted the difficulty in accessing the Park by foot or bike and the perception of safety currently lacking for many.

FOCUS GROUPS AND INTERVIEWS
Project for Public Spaces’ site visit in February 2022 included two full days of focus groups and interviews. These discussions allowed us to understand what is missing in the community and what already exists to build off of, as well as a good background in how South City Park was used in the past, the nostalgia the community holds for the park, and its fencing three years ago.

These engagements also helped increase awareness of the project and understanding of the work needed to include the community in program planning of the new South City Park.

PPS began the focus group series with representatives from Good News and Redding Police. Before the park was fenced, there was a large amount of camping in the park by unhoused people. To prevent this from occurring again, the park plans to close the gates at night. The desire for safety was very prevalent during conversations with the community, and this is because they do not feel safe when they see the number of homeless in the parking lot and near the library now. A lawn area along Parkview Avenue where a group hangs out is especially discouraging to potential library and park users. While clients at Good News Rescue Mission have to leave campus during the day, Mission staff and the police began discussing the idea of using a potential micro site shelter as a day center. This space could include picnic tables, shade, recharge stations, and serve as a relocated food drop-off from the library in a place where they can feel comfortable. When South City Park is reopened, activity throughout the day will very likely deter the homeless. The best way to keep the park usable for all members of the community Community Engagement
PPS conducting public
engagement in Santa Clara.

Surveys and Focus Groups
Focus Groups and Interview
Participants with PPS included
Representatives from:
• Good News
• Redding Police
• Event Planners
• Shasta Library Foundation
• Local Architects
• McConnell Foundation
• Local Informal Sports Organizers
• Shasta Living Streets
• Livable Communities
• Library Staff
• Shasta Growers Farmers Market
• Parks + Recreation
• Shasta Arts Council
• Local Event Producers
• Public Health/Healthy Living
• West Redding Little League
• Redding Colt .45s
• Community Members + Neighbors
Packet Pg. 873 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 13 is to keep it activated throughout the day, yearlong. We also discussed how the park could host Mission peer outreach and job placement
programs.

In multiple focus groups with neighbors, local
designers, and event planners, the conversation
focused on activity and the need for recreation
storage. While they want a host of sports for all
ages, the groups didn’t see enough demand to
maintain the number of existing tennis courts
and that some of this space could be relined
for growing sports like pickleball. They also
mentioned the desire to see more use of Tiger
Field outside of the Colt .45s’ season. West
Redding Little League also told us that Tiger
Field could host older Little League divisions
like Juniors and Majors, which would then open
up K1, K2, and K3 to more younger play which
has overwhelming demand. In discussing the
need for a destination playground, they also
pointed out that there needs to be shade,
plenty of seating for guardians, bathrooms, and
potentially a water feature or mister to combat
those hot days. Many people also mentioned the
need for something iconic, or “Insta-worthy”, to
symbolize South City Park. Some recalled the old
carousel or the hope for a unique identity with
public art.

In talking with Parks and Recreation, we heard
that there is great demand and not enough
space for summer camps. Camps with staff
can be great eyes and constant users of the
park. Library staff also see need for more teen/
after-school age programming. There are also
many homeschooling families that could move
between the library and the park.

We also discussed the events and programming
that is missing in Redding. Neighbors are
looking for more games for twenty-somethings
like blanket bingo, cornhole tournaments, or
fitness classes. There was also lamenting for a
loss of accessible plug-n-play venues for high
school bands and other young artists. The
community was especially inspired by the work
of Shasta Living Streets’ Streets Lab’s programs
and yearn for an ongoing Fall Fest and other
recurring seasonal events, as well as markets
and beerfests. The McConnell Foundation also
focused on a desire for the park to be able to
serve the community beginning as kids and
continuing throughout their lives. They also
brought up need for a multi-use building, a
desire heard throughout many of our meetings.

They suggested it have movable walls to open
up more or less depending on need or weather.

They shared that there are a lot of people that
want to practice and participate in messy art. It
could also serve as an event space, fair/market
space, winter activation, and protection from
the heat. In later meetings including Healthy
Shasta and the Farmers Market, we expanded
the needs to include space for prepared food
classes or vendors.

Across the board, people we talked to remarked
that the park was not very accessible. It is
unclear how to enter as a pedestrian or biker,
or where to leave a bike. In a meeting including
CalTrans, Shasta Living Streets, and Chief of
Staff to State Senator Dahle, we discussed
the problems in the park’s edges. Many routes
to the park lack sidewalks on one side or are
too narrow for even one person to pass just
one other without stepping onto the busy, fast
car lane. There is also not a safe pedestrian
crossing from the Safeway side of the street
or downtown, nor is their a bike lane. These
obstacles create a “dangerous freeway feel”
around the entire park which makes it hard to
be a neighborhood park. In meeting with library
staff, they also remarked that there is not a
good flow from library to park wherever you
come in.

Packet Pg. 874 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 14 Project for Public Spaces – South City Park – Redding, CA 16 Park Vision
17 Power of 10+
18 Major Themes
21 Overcoming Challenges
Part 2:

Visioning
Packet Pg. 875 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 15 With the broad and innovative thinking of
Redding’s city government, an involved and
caring citizenry and several strategically
located community destinations nearby, South
City Park could become an inspiration for
defining a new role for parks in the city.

Packet Pg. 876 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 16 Project for Public Spaces – South City Park – Redding, CA Park Vision
Goals and Opportunities
Redding has a unique opportunity for South City
Park to become a catalyst for strengthening
and building the entire community. With the
broad and innovative thinking of Redding’s city
government, an involved and caring citizenry
and several strategically located community
destinations nearby, South City Park could
become an inspiration for defining a new role
for parks in the city. This new role puts the
urban park at the forefront of the city’s civic
spaces and goes beyond viewing it as a purely
recreation facility.

South City Park is uniquely poised for this new
role -- it has within its boundaries a baseball
field, bocce courts, tennis courts, a basketball
court, walkways, and open grassy areas for
picnicking, sitting, and other informal uses.

Directly adjacent to the park are the Redding
Library and Tiger Field along with plenty of
parking. The park is near two residential
neighborhoods and only a short distance from
revitalizing downtown Redding. In addition,
Redding City Hall with its ample grounds is just
two blocks away.

Taken separately, each of these places offer
little more than a single experience to potential
visitors and users. With some thoughtful
renovation, and strategic replacement of
underused facilities with uses that would attract
families, and other users throughout the day,
South City Park could provide a special and
meaningful “park” experience of several hours
or more.

To create this type of experience would
mean that the Library, Tiger Field, the park,
and City Hall would function together to
expand and enrich the place. Some of the
ideas that came out of the community
engagement process in the park suggested
certain first steps to consider. For example,
there was an idea to develop a multi-use light
structure or community pavilion in the park
for performances, markets, and community
celebrations. Another was that the parks
department would work to better connect
the park and library by offering an expanded
outdoor space for library programming in the
park and linking existing programs, such as
story time, to the benefit of both library and
park.

There are also improvements to be made to the
park that would attract families with children,
youth, and seniors. For example, the existing
walking path could be connected around the
park and signed with distance markers to make
it into a continuous loop, underused courts
could be re-purposed to other games to attract
more users, the site of the former play area
could be developed for other uses. There are
many other ideas that were raised during the
community engagement and will be explored in
the vision for re-developing South City Park.

This vision starts with the central idea that if the
park is to become a vital and active community
destination, it needs to attract a critical mass
of people throughout the day, and it needs to
be thought of broadly and in conjunction with
various other uses and potential programming
partners.

Packet Pg. 877 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 17 Power of 10+
A great destination has at least 10 places within it, each with 10 things to do.

The Power of 10+ is a concept that highlights the importance of having multiple interrelated uses and spaces across various scales – starting from a micro-place up to parkwide, neighborhood and even city-wide scale. This means that it is not enough to have just one great place in South City Park — a number of them are needed to create a truly lively destination.

Any great place itself needs to offer at least 10 things to do or 10 reasons for people to be there.

These could be very simple and include a place to sit, a playground to play in, a garden to enjoy, art to contemplate, games to play, music to hear, food to eat, history to experience, and people to meet.

Ideally, some of these activities would be unique to South City Park and interesting enough to keep people coming back. The people who use the place most regularly are the best source of ideas for what uses are needed and desired.

The Power of 10+ offers a clear framework that not only helps examine existing places and prioritize places for improvement but can motivate residents and a variety of partners to take action. This approach shows that by starting efforts at the smallest scale big things can be accomplished. The concept also provides tangible goals to strive for and helps organize the re-development efforts as we envision a busy, dynamic, and enjoyable South City Park.

PLACE
10+ things to do
(layered to create synergy)

CITY/REGION
10+ major destinations

DESTINATION
10+ places in each
Packet Pg. 878 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 18 Project for Public Spaces – South City Park – Redding, CA Major Themes
Key qualities will guide activation efforts and become
hallmarks of the new South City Park
The community engagement process, including
the focus groups and interviews conducted by
Project for Public Spaces, as well as the survey,
open house, and pop-up led by the Community
Services Department, generated an exciting
number of ideas, comments, reminiscences,
and recommendations. We also heard and
acknowledge concerns about certain challenges
for the park, and its surroundings. Outlined
below are some of the major themes that can
help organize program ideas, design concepts,
and practical solutions to challenges.

A UNIQUE (URBAN) PARK EXPERIENCE NEAR

DOWNTOWN REDDING
The City of Redding already has a robust and
successful system of city parks that are well
loved and well used by residents. Many of these
parks are larger, and boast spectacular natural
features, as well as high quality community and
recreational facilities and programs. While South
City Park doesn’t offer unique natural features,
it has the potential to offer a unique urban
park experience in proximity to downtown.

Many of the participants in the engagement
process had fond memories of using the park
when they were young as a place to play and
relax. Capitalizing on its location, the park
needs an update that will revive this urban park
experience but with renewed features and
contemporary attractions. For this strategy to
work, the park should be focused on supporting
a mix of programs and activities that will keep
bringing users throughout the day, the week,
and the year. The key to restoring the park to its
former importance as a community destination
is making it into a welcoming place for families
once again. Destination play, comfortable
restrooms, and exciting programming for all
ages are all elements to be considered.

OFFER FOOD AND COMFORT
In the words of William “Holly” Whyte, “If you
want to seed a place with activity, put out food”.

Many of the world’s most successful parks
anchor activity and economic opportunity
around food offerings. Whether a simple café, a
sit-down restaurant, or an ice cream cart, food
is in high demand in city parks. Since this area
of town has limited food options, stakeholders
felt that offering simple food options at a
community pavilion, or in a food truck or cart,
would be key to attracting people to renovated
South City Park. The success of this type of
offer depends very much on attracting enough
customers to make this a good place for
business. Developing a food offer in the park
may start with Italian ice in the afternoon when
kids come to the park after school, or with
morning coffee timed with the library’s story
time. Food vendors could also be given a priority
for larger events and festivals if they are willing
to be in the park on regular weekends. Food truck in Indianapolis, IN Packet Pg. 879 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 19 Pickleball game at Hot Springs Village, AK

A SETTING FOR FESTIVALS, CELEBRATIONS AND

SPECIAL EVENTS
There is interest from stakeholders and
residents to see the park become a site for
festivals, celebrations and community events,
with events that build off Colt 45 games, but
also ones that bring in new audiences and
activities. Existing ample parking nearby, along
with the fence around the park making it a
venue that could host ticketed events, but also
a space where parents with children can enjoy
event activities, knowing their kids can run
around in a protected environment. In the short
term, events can be hosted here using portable
equipment - stage, lights, port-a-potties, etc.

In the long-term, hosting could center on a
potential outdoor stage area attached to the
community pavilion with necessary power
and water supply for outdoor performances,
events, and festivals. This could fill the need for
an accessible venue for teen bands and young
emerging artists, as well as a highlight event for
the reemergence of Market Fest and outdoor
jazz and blues festivals.

AN ACTIVE MULTI-GENERATIONAL PLACE FOR

RECREATION AND SOCIALIZING
In order to be successful, South City Park needs
to expand its purpose beyond active sports, and
offer opportunities for self-directed recreation
and socializing. Existing sports and games
courts should be re-considered to encourage
regular daily use, and create a setting for more
spontaneous activities and uses that reflect the
interests and needs of the community. Adding
to the existing (mostly senior) audiences for
bocce and pickleball, South City Park could also
attract youth and teens with programming,
opportunities for self-directed learning and
recreation, and a place to be social.

When successful, such multi-generational
places have their own “organic” life and a true
sustainability that stems from the social capital
and relationships built between the people
in the community — from club members and
league players who host and participate in park
A stage at Madison Square Park‘s Big
Apple Barbecue Block Party in New
York City
Packet Pg. 880 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 20 Project for Public Spaces – South City Park – Redding, CA Native plants help absorb stormwater
runoff, while providing a colorful
accent.

Major Themes (Cont.)
activities, to groups who simply contribute with
their regular presence and engagement. While
active programming will always be needed in
the space, the park could become once again
a place where neighbors meet for community
gatherings, friends bring picnics, teens hang out
and dog owners set up dog play-dates.

SUSTAINABILITY
The park has a significant number of mature
trees that should be preserved as much as
possible, and only replaced if the health of the
tree is in question. The park is already a green
environment that provides natural shade.

There is also an opportunity to add color and
excitement to the landscape by adding seasonal
landscaping and colorful plantings at key areas
like the main gateway, and near buildings. An
emphasis on native tree and plant species
both in and around the park (i.e. trees, grasses,
plants) can provide opportunities to connect
to the surrounding environment and create a
stronger physical link to the library. Plantings,
like vines on trellises or on the sides of buildings,
can be added to reduce re-radiated heat from
any hard surfaces in the park. Beyond these
more direct benefits, plants and trees are an
opportunity to cultivate stewardship in the park
with volunteer watering programs and tree
planting initiatives. To accommodate increasing
concerns about stormwater management, a
mix of rain gardens and bioswales should be
applied to key areas in the park and the adjacent
parking areas. These plantings will also help
offset the urban heat island effect, and help
with cooling in the summer months.

Packet Pg. 881 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 21 Overcoming Challenges
The Recharge Station is a kiosk and a social environment in Times Square designed by PPS and operated by peer from Fountain House that connects people experiencing homelessness to services.

The community engagement process highlighted the most
important issues to address
It is clear that in its existing state South City
Park has some challenges. The community
engagement process, including surveys, focus
groups and interviews highlighted the most
important issues discussed below.

MAKING THE PARK A SAFE PLACE
Safety, and the perception of safety, were the
number one concern for survey respondents,
residents and various stakeholders. From a
placemaking perspective, making a place feel
safe and welcoming is a key prerequisite for
any type of improvement. To learn more about
the safety conditions in the park we spoke
with representatives of the Redding Police
Department (RPD), Department of Community
Services, Redding Library, park workers, and
the Good News Rescue Mission. We understand
that the community’s concerns about safety are
mostly driven by worries about people camping
and living in the park, a situation that in 2019 led
to the park being fenced off, and access limited
as a temporary measure. The COVID pandemic
has extended this temporary situation, and
the City of Redding is now determined to
simultaneously improve the park and address
safety concerns.

While solving the challenges of homelessness
in Redding is beyond the purview of this
placemaking effort, a set of strategies was put
forward to make the park safer and prevent
camping. RPD, the Good News Rescue Mission,
and other partners are working to provide
people experiencing homelessness with a
safe, welcoming and attractive place to spend
time during the day that is not the park, or the
parking lot between the library and the park. The
location, still being finalized, will offer amenities
such as picnic tables, shade and restrooms,
along with social services, meals, and other
supportive programs to people in need. At the
same time, the renovated South City Park will
offer activities and amenities to everyone in
Packet Pg. 882 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 22 Project for Public Spaces – South City Park – Redding, CA Overcoming Challenges (Cont.)
Redding, but camping in the park will not be
allowed. South City Park, like any other public
space, will be made safer by attracting more
users to the space throughout the day, the week
and the seasons. The best way to make the park
feel safe is to make it attractive to everyone. To
have people in the park who take care of the
space, mediate conflicts, know each other, and
keep an eye out for each other.

In order for South City Park to be transformed
into the great community destination it has the
potential to be, the park will need to address
several other challenges that are linked to the
need to make it feel safe.

A NEED FOR A CRITICAL MASS OF USERS
First, the park will need to attract a critical
mass of users in order to become attractive
to everyone. This can be achieved with a very
intentional, closely monitored, and carefully
curated program of uses that focuses on
bringing specific audiences to the park at
different times of the day.

For example, mothers and caregivers with small
children should be attracted by a destination
play feature paired with educational and art
programming that links to library Story Time.

Seniors coming to play pickleball would also
be encouraged to come to the park in the
morning. A coffee cart could offer everyone
drinks and snacks. In the afternoon, older kids
and after school classes would be hanging out
in the teen area, working on robotics and art
projects, while the bocce league members meet
for a tournament in the late afternoon, and
dog owners bring the pets to the dog park for
their afternoon run. In the evening the entire
community would come together for movies on
the lawn with popcorn and beer provided by a
local brewery.

Right now this perfect day in the park sounds
unlikely, as existing amenities and programs do
not support this mix of uses. The need to create
a strong and diverse program requires that the
park goes beyond its current focus on organized
sports. This doesn’t mean that the K1 field will
not be an important element of the park, or that
Tiger Field will not be drawing visitors during
game season. It means that other activities are
needed to seed the park with life, and they will
need to be supported. In Bryant Park, maintenance staff serve also as park ambassadors, providing information and
constant care.

Packet Pg. 883 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 23 Temporary sidewalk and bike lane experiment
in downtown Waco, TX.

A CONSTANT PRESENCE IN THE PARK
The surest way to enhance programming and
keep the park safe is provide for a constant
management presence in the park. While the
Parks Department doesn’t have the capacity
to assign a manager solely devoted to the park
at present, this may be a goal to pursue in the
future. For starters, the Parks Department, RPD,
Urban Park Rangers, and various programming
partners will need to carefully coordinate their
efforts to make sure that the park is not left
unattended. This will be particularly important
for the initial months after re-opening, as
the park establishes its regular users and
regular programs. The potential for a direct
linkage to the Redding Library offers additional
opportunities, as well as engaging existing
programming partners who are already doing
great work in the community such as Shasta
Living Streets. Investing in South City Park’s
revitalization means investing in management
and programming as well as in capital
improvements.

IMPROVING ACCESS AND SOFT-MODES OF

TRANSPORTATION
Throughout the community engagement
process, in surveys, focus group discussions,
and interviews the challenges of improving
access to the park kept popping up. Everyone
agrees that walking and bicycle connections to
the park from the surrounding neighborhoods
and from downtown leave a lot to be desired.

We understand that CalTrans is planning some
crosswalks and pedestrian improvements
to S. Market Street (SR 273) as part of their
“Complete Streets” program, which are slated
for implementation in 2028. Advocates, however,
feel proposed improvements are insufficient,
and connections to the residential neighborhood
west of SR 273 need to be addressed with
a stronger vision. Other solutions, including
temporary crossings and pedestrian/bicycle
routes, should be pursued by the city to ensure
that neighbors, and youth can safely get to the
park.

Another challenge related to access is the
need for a clear, safe and welcoming vehicular
gateway into the park that puts Redding’s
caregivers at ease as they approach. Further
in this report we make recommendations
regarding creating a gateway on Grape Avenue,
but a secondary gateway on Parkview could also
be considered, especially if the safety strategy
goes forward.

Packet Pg. 884 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 24 Project for Public Spaces – South City Park – Redding, CA 26 Programming
28 Sample Calendar of Events
30 User Experience Diagrams
32 Park Destinations
60 Full Plan and Schematic Design
Part 3:

Activation &
Design
Packet Pg. 885 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 25 When we build our communities around
places, it is not enough to have one single use
dominate a particular place— we need a diverse
array of activities and programs for a variety of
people.

Packet Pg. 886 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 26 Project for Public Spaces – South City Park – Redding, CA Programming
Concepts that arose during engagement and the importance of mixing programming with self-led activity
The placemaking process identified the types and mix of programming elements that would attract people to the renovated park on a regular basis through in-depth community engagement.

Proposed destinations within the park are defined through their function, character, and essential amenities that would support use and enjoyment. These destinations are described in the following pages.

TAXONOMY OF ACTIVITIES
When we build our communities around places, it is not enough to have one single use dominate a particular place— we need a diverse array of activities and programs for a variety of people. A carefully chosen range of activities will help a place attract a variety of people at different times of the day. A playground will draw young kids during the day, while a climbing wall will draw older kids after school, and concerts bring everyone together during the evening. These special events are also great at introducing people to the Park that will grow more comfortable in coming more regularly for self-led activation.

POWER OF 10+
The renovated South City Park endeavors to become a more successful park, it needs unique subplaces within it, each with a number of activities to engage people on a regular basis. Some of these activities are very simple – relax in the shade, play on the playground, watch other people, experience art, play sports or games, study, etc. Cumulatively, simple activities, sub-places and micro-destinations will make the great park the South City Park is poised to be.

Based on this concept and using the collaborative placemaking process, PPS has identified eight potential different destinations or sub-places within the new park, each with its own function, character, and purpose.

Packet Pg. 887 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 27 Special
Events
Seasonal
Programming
Weekly
Programming
Daily Activation
Hierarchy of Needs for
an Active Public Space
Packet Pg. 888 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 28 Project for Public Spaces – South City Park – Redding, CA Sample Calendar of Events
Packet Pg. 889 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 29 Packet Pg. 890 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 30 Packet Pg. 891 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 31 Packet Pg. 892 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 32 Project for Public Spaces – South City Park – Redding, CA ARRIVAL + ACTIVITIES PLAZA
7,300 SF
Meeting and gathering place at main gate
Signage and wayfinding
Seating
Art displays on fence
MULTI-USE PERIMETER LOOP - 0.3 MILES
Loop path with distance markers for walking/
jogging/biking

DESTINATION PLAY
25,200 SF
State of the art, creative, and unique play
Meet-up space with information for caregivers
Ample seating for caregivers
Shade over some of play area
Canopy or trellis shade over seating
Water feature - splash or misting pad

MULTI-USE PAVILION
4,500 SF
Community celebrations and events
Catering kitchen
Restrooms accessible from outside
Outdoor facing stage
Markets, fairs, art events
Park equipment storage

INDOOR-OUTDOOR AREA/COVERED PORCH
1,600 SF
Concerts and performances
Film screenings
Exercise classes
Library programs
Art classes
Work/study
Lounging/relaxing
Birthday parties and small gatherings
Table games

FLEX LAWN
26,500 SF
Communal seating
Community gatherings
Yard games
Informal activities
Picnics

COURTS AREA
17,280 SF
Open-air exercise
Exercise programs for kids and adults
8 Pickleball courts

BOCCE COURTS (EXISTING)
Existing Bocce courts
Enhanced permanent bleachers
Renovated existing restrooms

YOUTH AREA
12,000 SF
Gathering area and ramps
Climbing and hangout element for kids over the age
of 12
Skate elements / rails
Loop skate path
Half Basketball Court
Ping pong tables
Bike repair
Maker corner/workshop area for robotics, remote
controlled cars, etc.

DOG AREA
6,000 SF
Agility course
Dog activities
Socialization for owners
Seating and shaded areas
32 Project for Public Spaces – South City Park – Redding, CA Design
Park Destinations
Packet Pg. 893 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 33 Packet Pg. 894 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 34 Project for Public Spaces – South City Park – Redding, CA Arrival and Gateways

EXTENDING THE PARK BEYOND ITS BOUNDARIES
Developing an access and gateway strategy for the streets leading to the park - Grape Avenue, Parkview Avenue, S. Market Street and Cypress Avenue - is key to transforming South City Park into a place that is welcoming to families and youth. While improving pedestrian and bicycle access is a longer term challenge, we understand that CalTrans is planning improvements to S. Market Street as part of their complete streets program. These improvements should include safe ways for pedestrians and cyclists to cross the street close to the park. In addition, stakeholders were excited about the opportunity to create pedestrian and bicycle connections to trails that go to the river, and other city parks.

Assembling a set of gateway features that will link the park to the Library and Tiger Field, and further afield to City Hall, and Safeway, will help make the park welcoming to all. There are two key outer gateway locations that need to be addressed - the intersection of Parkview Avenue and the park driveway adjacent to the library and the intersection of Grape Avenue and the park driveway along Tiger Field. While the Parkview Avenue location needs special care and consideration for the needs of the people spending time there, the Grape Avenue gateway could be prioritized for improvement right away.

A gateway treatment at this location could include colorful planters, branded flags and banners with language developed to be specific to the Park, and inviting directional signage. There is also an opportunity for a mural on Grape Avenue, potentially on the Tiger Field wall or on the ground at the intersection to achieve a strong sense of arrival and excitement. Focus group participants recommended involving the community in painting murals, and including teen art students.

The park already has multiple entry points, which unfortunately are not all functional at the moment. The entrance leading to the existing basketball court should be designated as the main entrance, and enhanced to provide wayfinding, explain the schedule of events and programming, and share information regarding court and field uses and new park destinations. The main entry point should be an obvious meeting and gathering place with comfortable seating, bike racks, plantings or planters, and art displays on the fence. The secondary entrance by Tiger Field should be signed appropriately to avoid confusion. Until pedestrian crossings are improved, the entrance ramp on S. Market Street should remain closed, while the entrance off Cypress Avenue could be managed with a lock pad to serve the proposed dog park.

Signage identifying park destinations will also be needed throughout the park, and along the main walkways. Most notably, the walkway along the S. Market Street wall can be completed in a full loop around the park and signed with distance markers for walking and jogging. The new sections needed to close the loop could be surfaced not with asphalt but with a softer, permeable material like compacted gravel to make for safer running and outdoor gym exercise equipment added to complete the experience. Interactive story trails that including “choose your own adventure” activities could also be conceived in the park with the help of Library staff.

Packet Pg. 895 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 35 Examples of entrance, landscaping, and signage
creating a strong sense of arrival and direction.

Packet Pg. 896 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 36 Project for Public Spaces – South City Park – Redding, CA Entry
Activity
Plaza
Courts
Destination
Play
Pavilion
Entrance
Flex Lawn
Activities Plaza
7,300 SF

OVERALL CHARACTER AND USE
The activities plaza is located just outside of the playground and the main pavilion entrance. Visible from the Park’s main access point it will be a place for activities, such as Story time; table games; an outdoor reading room; outdoor arts and crafts for families, and a Market Plaza for the Farmers Market.

The function of this plaza is to draw people into the park, and provide a location for community activities that cannot take place on the Lawn, or indoors.

Packet Pg. 897 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 37 Packet Pg. 898 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 38 Project for Public Spaces – South City Park – Redding, CA Destination Play

QUALITIES OF GREAT PLAYGROUNDS
Great playgrounds are attractive, colorful, fun and unexpected. Research by environmental psychologists, child development specialists, landscape architects, and educators shows that children need unstructured play that ignites the imagination, instead of forcing a child into a strict set of repeated motions, as most play equipment does.

The best play areas stimulate the type of play previously experienced in nature or in the woods, rather than focusing solely on equipment. They reproduce free play by offering “loose parts,” such as water, sand, woodchips, gravel, and other manipulable materials.

Successful play areas encourage interaction between age groups by offering something for everyone. They link play for different ages with social activities like eating and drinking.

Providing leisure activities and social opportunities for adults also means that parents will stay longer, giving children more play time.

OVERALL CHARACTER AND USE
A major audience that the renovated park would seek to attract is families and caregivers with children. The proximity to the library, which has a small reading garden and offers special programming for kids is a big asset for achieving this connecting library and park both physically and programmatically. Another element of this effort, mentioned by many in the engagement process, is the opportunity to install an exciting new play feature that would be a unique destination in Redding. High quality contemporary play equipment should be coupled with ample comfortable seating for caregivers and parents, new restrooms, shade, and potentially some opportunities for water play, such as a splash pad, a sprinkler or another simple water feature.

A new play area, with its additional amenities, is an opportunity to think of family experiences for kids of various ages. The park could offer engagement opportunities that go beyond play equipment and organized sports, through learning, arts, STEM and other programs in concert with the library. It is also worth considering some multi-use amenities and play equipment for older children, such as seating areas or climbing structures, for pre-teens to hang out and socialize, while their family is at the playground with younger siblings. 180’ x 140’ = 25,200 SF
(for comparison: Kids Kingdom is around 38,250 SF)
Packet Pg. 899 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 39 Destination play offers a variety of
features, as seen in examples from
Aspen and Houston.

Packet Pg. 900 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 40 Project for Public Spaces – South City Park – Redding, CA Treehouse R
w
Treehouse
Rope Play
Shade over Rope Play Fish Theme play Equipment-Alt 1
Destination Play-Components
Packet Pg. 901 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 41 Rope
Play
Park
Pavilion Theme
play
Mound
with slide
2-5
Play
Spray
Pad
“Bob the Fish” Theme play
Equipment-Alt 2
Spray Pad
Mound with slide
Entry
Activity
Plaza
Packet Pg. 902 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 42 Project for Public Spaces – South City Park – Redding, CA Fish Themed Play Structure Choices
Kompan
Earthscape
Dyanamo Playgrounds
Inspiration for the fish theme for the
Destination Play area comes from the life of
the colorful Salmon that spawn in the area.

Packet Pg. 903 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 43 Play Components
The play area and restroom at the pavilion will
be close to and visible from each other, similar
to this example from Levy Park in Houston.

Clockwise from top left: Rope Play; Mounds
with Slide; Tree House
Packet Pg. 904 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 44 Project for Public Spaces – South City Park – Redding, CA Packet Pg. 905 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 45 Packet Pg. 906 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 46 Project for Public Spaces – South City Park – Redding, CA Flexible Multi-Use Community Pavilion

OVERALL CHARACTER AND USE
Inviting families to the park will not be possible without some additional amenities, such as shade, a nice restroom, a place to get a drink of water, etc. During the engagement process many participants mentioned the need and opportunity to build a flexible community pavilion. This light structure could offer restrooms, space for community events and celebrations, an outward facing stage for park performances, potentially a catering kitchen, and a flexible space to accommodate seasonal markets, arts and crafts fairs, and other community events. The structure was envisioned as an indoor/outdoor space with rolling “garage-type” doors that make it a mostly open pavilion in the summer months, and an enclosed space for events and activities in winter.

The pavilion would also serve as an anchor for local festivals like Paesano Days, or Thursday Market Fest, which many remember fondly. It could host smaller events, similar to those curated and organized by Shasta Living Streets Lab downtown.

Building Size: around 4,500 SF
Footprint: 50’x100’
Orientation: long sides of the building are facing NE-SW Packet Pg. 907 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 47 Examples of flexible pavilions from NYC and
Seattle.

Packet Pg. 908 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 48 Project for Public Spaces – South City Park – Redding, CA Service
Access
Cafe’
Restrooms Kitchen
Open space
for activities/
markets
Meeting
room
Stage
Entrance
Terrace
Playground
Flex Lawn
Activities
Plaza
Flexible Multi-Use Community Pavilion
Components
Packet Pg. 909 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 49 Cafe’
Open space for activities/markets
Packet Pg. 910 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 50 Project for Public Spaces – South City Park – Redding, CA 1,600 SF
Indoor-Outdoor Area/Covered Porch and Stage

OVERALL CHARACTER AND USE
This flexible transitional space would be covered, but still feature outdoor seating and an outdoor stage attached to the community pavilion. Accessible from the outside even when the pavilion building is closed, the stage would offer access to power and water supply for outdoor performances, and events, and for impromptu activities. Somewhat sheltered from the elements, the space can also be a back-up venue for outdoor activities such as exercise, classes, arts, small gatherings, and library programs in the park.

A key feature of the outdoor stage function should be its accessibility and “plug and play” option. Participants in the placemaking engagement spoke about the design to offer a simple venue for young musicians and local garage bands to perform to small youth audiences, as low barrier to play venues have disappeared in Redding.

The canopy will extend 20-30 feet out facing West and Southwest to provide a seating patio overlooking the play area for caregivers.

Packet Pg. 911 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 51 Outdoor terraces and porches extending
indoor spaces from Austin, Houston and
Redding’s own Turtle Bay Museum.

Packet Pg. 912 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 52 Project for Public Spaces – South City Park – Redding, CA Flex Lawn

OVERALL CHARACTER AND USE
While the park is green and has mature trees, in its existing condition it lacks a destination lawn space that is easily identifiable. A clearly defined flexible lawn space, using existing grass, with some small amenities can offer the proverbial park lawn experience. The lawn would be the place for picnics and gatherings, yard games, and tournaments such as corn hole tournaments, which were mentioned by stakeholders. It could be a great place for summer camps in great demand in Redding. The lawn would also be the viewing area for the outdoor stage/covered porch allowing for audiences to watch movies, performances, music, etc. It would also be the main location in good weather for outdoor exercise classes such as yoga, zumba, boot camp, etc. Other than a well maintained lawn, the area should offer moveable chairs, or lawn chairs, as well as various lawn game sets for people to use. It would also be a prime location for informal play like hula hoops, soap bubbles, or imagination play. 160’x200’ = 26,500 SF
Concert for 1,500 people Picnics for 30 groups Tent for a wedding/fundraising event for 400 people

BUILDING
STAGE

BUILDING
STAGE

BUILDING
STAGE
Packet Pg. 913 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 53 Corn hole toss, outdoor movies and
imagination play are just a few of the many
uses of the flex lawn.

Packet Pg. 914 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 54 Project for Public Spaces – South City Park – Redding, CA 17,280 SF
Courts Area

OVERALL CHARACTER AND USE
During the placemaking engagement we heard from pickleball players looking to take advantage of the existing tennis courts. We propose to repurpose and eventually renovate the existing tennis courts for pickleball, providing 8 pickleball courts. This would ensure that a larger number of players get to enjoy the space, while the City is exploring options at another location for tennis use. Repurposing the courts for pickleball would also connect the growing pickleball player community of Redding to South City park, while alleviating the demand in other city parks. The green space outside of the courts offers an opportunity for players to gather, picnic, share information and equipment, organize tournaments, and other activities.

Packet Pg. 915 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 55 Provide comfortable permanent bleachers for
watching games and a patio with umbrellas
close to the renovated restrooms.

Bocce Courts

OVERALL CHARACTER AND USE
Members of the Redding Bocce League and other players are already enjoying the renovated Sons of Italy bocce court in South City Park. The courts are used for league tournament games as well as for practice and other games, and this use will only increase as access to the park becomes easier with park renovation.

The renovated bocce court offers portable bleachers which are shared with Tiger Field. The area could become a stronger focal point with permanent bleachers to the west of the court, which could be enclosed in the back to provide storage. The east side could remain open for either portable bleachers or for spectators and players to bring their own chairs. The bocce area includes the existing restrooms, which are serviceable but will ultimately need to be upgraded with new facilities.

Packet Pg. 916 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 56 Project for Public Spaces – South City Park – Redding, CA Youth Area

OVERALL CHARACTER AND USE
Making South City Park an attraction for families, and a multi-generational place means offering a space and programs for youth – tweens, and early teens – besides organized sports. The City of Redding has great resources for organized sports, and we learned a lot about all the baseball and softball opportunities for children and youth. The existing K1 field will continue to support the needs of young players, and programmatic connections with Tiger Field will build excitement.

However, we see here an opportunity to diversify activities for kids and youth that will build off the destination play, and various park and library programs in an area intended for youth.

This area could take advantage of the paved area near the park building with uses like basketball, skateboard and bike-friendly elements, seating & climbing element specifically for kids 10 or older, ping pong tables, painted games etc. Additional programs could be offered for this age group like bike repair, and a maker corner or workshop area for robotics and remote-controlled cars potentially spearheaded by the Library, which is developing its maker space and maker resources.
150’ x 80’ = 12,000 SF
Packet Pg. 917 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 57 Examples of youth play and activities
including biking, skating, and maker programs.

Packet Pg. 918 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 58 Project for Public Spaces – South City Park – Redding, CA Dog Area

OVERALL CHARACTER AND USE
While there are some concerns about bringing dogs into the park, responsible dog owners and their pets make excellent park users as they tend to use dog areas regularly and in all weather. If dog use is deemed desirable, South City Park could offer a fenced dog run, with some agility course elements, seating for dog owners, and drinking water.

Conflicts between dogs and family use, which were mentioned in the stakeholder discussions, should be minimized by locating the dog park away from other activities, and keeping off-leash dogs within the fenced area. While the community of Redding enjoys ample outdoor space - backyards and trails - to exercise with their furry friends, dog areas are a prefect place for dogs and people to socialize and bond. 6,000 SF
Packet Pg. 919 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 59 Dog parks offer simple exercise equipment for
pets and plenty of space for dogs and their
owners to socialize, including seating.

Packet Pg. 920 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 60 Project for Public Spaces – South City Park – Redding, CA

LIBRARY

EXISTING

SOFTBALL FIELD

MARKET STREET

PARKVIEW AVENUE

PICKLEBALL
COURTS
D
PL

EXISTING

PARKING

EXISTING PARK

BUILDING YOUTH AREA

EXISTING

PARKING
Packet Pg. 921 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 61 MULTI-USE

PAVILION

CYPRESS AVENUE

TIGER FIELD

DESTINATION

LAYGROUND

FLEX LAWN

ACTIVITIES
PLAZA

EXISTING

BOCCE AND

RESTROOMS

DOG AREA
N

PERIMETER LOOP
Packet Pg. 922 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 62 Project for Public Spaces – South City Park – Redding, CA Packet Pg. 923 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park) 63 Packet Pg. 924 Attachment: Project for Public Spaces Final Report (9.6(c)--Approve Concept Plan and Authorize Grant Application for South City Park)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Offer Ordinance amending Redding Municipal Code Title 2 (Administration and Personnel) to Repeal and Replace Chapter 2.32 (Fire Department) for first reading by title only and waive the full reading; authorize the City Attorney to prepare, and the City Clerk to publish a summary ordinance according to law.

Fiscal Impact
There is no fiscal impact associated with the amendments.

Alternative Action
The City Council could choose not to accept the amendments and the Redding Municipal Code Chapter 2.32 would remain in its currently form.

Background/Analysis
The language in the ordinance, in its current form, does not represent a modern fire department.

The amendments proposed are primarily to update the now outdated language and processes to better reflect today’s fire department. In addition to some general clean up language, the ordinance will:

1. Eliminate language related to disposition of fees as those are contained in the Master Fee Schedule.

2. Update the scope of fire service to include fire prevention; fire suppression; injury prevention; pre-hospital emergency medical care; rescue, extrication and recovery services; prevention and mitigation of unplanned or inappropriate release of hazardous materials; and community awareness, emergency preparedness and response to other dangerous conditions.

MEETING DATE: November 15, 2022
ITEM NO. 9.8(a)
FROM:
***APPROVED BY***
[email protected] [email protected] SUBJECT: 9.8(a)--Consider Ordinance amending Redding Municipal Code Chapter 2.32 (Fire Department) to reflect updates to outdated language and processes.

Jerrod Vanlandingham, Fire
Chief
Packet Pg. 925
Report to Redding City Council November 10, 2022
Re: 9.8(a)--Ordinance Amending RMC Chapter 2.32 (Fire Department) Page 2

3. Update the conduct expectations of Fire Department employees.

4. Eliminate language related to Fire Department staff being prohibited from receiving gifts as this topic is covered under the City of Redding’s Gift Policy.

5. Update language to provide clear expectations of how Fire Department apparatus is to be utilized.

6. Eliminate obsolete language related to fire alarm boxes.

Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work and play in the City of Redding.” Attachments
^Draft New Ordinance
^Strikeout Ordinance
Packet Pg. 926

DRAFT NEW ORDINANCE
ORDINANCE NO. _____

AN ORDINANCE OF THE CITY OF REDDING AMENDING REDDING
MUNICIPAL CODE TITLE 2 (ADMINISTRATION AND PERSONNEL)
TO REPEAL AND REENACT CHAPTER 2.32 (FIRE DEPARTMENT)
THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS:

Section 1. Title 2 (Administration and Personnel), Chapter 2.32 (Fire Department) is hereby repealed and reenacted with a title to read as follows:

FIRE DEPARTMENT
Sections:

2.32.010 Established.

2.32.020 Fire Chief - Appointment.

2.32.030 Fire Chief – Duties generally.

2.32.040 Power to remove property.

2.32.050 Conduct of fire department employees.

2.32.060 Substitutes for officers.

2.32.070 Training drills.

2.32.080 Use of equipment.

2.32.090 Obstructing vehicles and apparatus.

2.32.100 Injuring equipment.

Section 2. Title 2 of the Redding Municipal Code is amended to add Sections

2.32.010 through 2.32.100, inclusive, to Chapter 2.32 to read as follows:

2.32.010 - Established.

There is established a Fire Department for the City of Redding.

2.32.020 - Fire Chief - Appointment.