Agenda
Regular Meeting
Redding City Council
Council Chambers (Doors open 30 minutes prior)
777 Cypress Avenue, Redding, CA
February 21, 2023
6:00 PM
This meeting will include teleconference participation by Mayor Pro Tempore Tenessa Audette (Government Code Section 54953). In addition to the meeting location above, members of the public may participate in the meeting from the following teleconference location:
Marriott Hutchinson Island Beach Resort, Golf & Marina Lobby 555 NE Ocean Boulevard
Stuart, Florida 34996
The City Council Chambers are fully open to the public in compliance with current guidelines from the California Department of Public Health regarding indoor meetings.
1. CALL TO ORDER - MAYOR MICHAEL DACQUISTO
A. Pledge of Allegiance
B. Invocation – Pastor Colin Duffy, Redding Nazarene Church C. Roll Call
2. PRESENTATIONS
2A. Presentation by Todd Jones, President of the Shasta Economic Development Corporation, providing an update on current activities.
2B. Presentation by the Redding Rodeo Association in honor of the Redding Rodeo's 75th Anniversary.
If anyone wishes to address the City Council on any item considered at this mee ting before or during Council’s consideration of that item, please fill out a blue Speaker Request Form, located in the lighted alcoves at the back of the Council Chambers, and submit it to the City Clerk. The City Council will allocate up to a maximum of three minutes per speaker for each agenda item. Staff reports are available on-line at the City’s web site at www.cityofredding.org or in the Public View binder located on the podium at the north side of the Chambers.
PLEASE SILENCE YOUR CELL PHONES. THANK YOU.
Redding City Council February 21, 2023
3. PUBLIC COMMENT - for non-agendized matters within the city’s jurisdiction.
4. CONSENT CALENDAR
The Consent Calendar contains items considered routine and/or which have been individually scrutinized by City Council Members and are anticipated to require no further deliberation. If a member of the public wishe s to address an item on the Consent Calendar, please fill out a Speaker Request Form and submit it to the City Clerk before the Consent Calendar is considered . It shall be the prerogative of any Council Member, before the Consent Calendar is acted upon, t o: (1) comment on an item; (2) respond to any public comment on an item; (3) request the record reflect an abstention or nay vote on an item; or (4) remove an item and place it on the Regular portion of the agenda for delivery of a staff report and/or an extended discussion or deliberation.
4(a). Approve Minutes: Regular Meeting of January 17, 2023; Special Meeting - Closed Session of February 7, 2023; and Regular Meeting of February 7, 2023.
4(b). Accept City of Redding Accounts Payable Register No. 14; and Payroll Register No. 15.
4.1(a). Approve the Second Amendment to the Real Estate Purchase and Sale Agreement with Crosland Barnes Group (C -9146), for 3.7 acres of City of Redding-owned property located at 5300 Venture Parkway, Stillwater Business Park Parcel 6A (Assessor’s Parcel Number 054 -220-028), thereby extending the close of escrow to March 31, 2023; and find the sale of the City -owned property is categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (Surplus Government Property Sales).
4.2(a). Authorize and approve the following actions:
(1) Authorize submission of a grant application through the California Homeless Coordinating and Financing Council Encampment Resolution Funding Program (ERF-2-R), in an amount up to $10,000,000, to support the development and implementation of City of Redding programs addressing the ongoing shelter crisis;
(2) Authorize the City Manager, or designee, to complete, sign, and submit the grant application with all ap plicable documents and subsequently accept and appropriate any ERF-2-R grant funds received; (3) Determine that applying for grant funding is not considered a project under the California Environmental Quality Act; and
(4) Determine that applying for grant funding is exempt from review under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3).
PURSUANT TO THE BROWN ACT, CITY COUNCIL CANNOT TAKE ACTION ON PUBLIC
COMMENT ITEMS
The City Council will allocate up to a maximum of three minutes per speaker for 30 minutes total, at the beginning of the meeting for Public Comment for non -agendized matters within the City’s jurisdiction. The Mayor will determine the order of the speake rs. If 30 minutes is not adequate to accommodate all of the individuals who have submitted a Speaker Request Form to the City Clerk, the Council will trail this item to the end of the open session agenda. The remaining speakers will address the City Council at that time.
Redding City Council February 21, 2023
4.5(a). Acknowledge the upcoming annual City of Redding Far Nor Cal Regional Science Bowl to be held Saturday, March 4, 2023, at Shasta College.
4.6(a). Authorize the following actions relative to the award of a grant from California State Parks Division of Boating and Waterways to fund City of Redding Recreation Division’s Youth Boating and Water Safety Programs:
(1) Accept grant in the amount of $38,000;
(2) Adopt Resolution approving the 80 th Amendment to City Budget Resolution No. 2021-078 appropriating the funds; and
(3) Authorize the City Manager, or designee, to execute the grant agreement and all subsequent documentation relative to the grant.
4.6(b). Approve the City of Redding as an applicant for $10 million from the California Department of Food and Agriculture Community Resilience Centers Program grant for the Panorama Park and Community Center (Project); and authorize the City Manager, or designee, to execute all documents necessary to apply for the grant.
4.6(c). Approve the Letter of Agreement with Big League Dreams USA, LLC, regarding payment of past due lease obligations and its Capital Improvement Plan.
4.11(a). Approve increases to the project budget in the amount of $150,000 for the completion of Bid Schedule No. 5222, Redding Aquatic Center 50 Meter Pool Improvement Project as outlined below for additional improvements:
(1) Increase of $20,000 to the construction management budget, bringing the construction management total to $138,000; and
(2) Increase of $130,000 to the construction contingency budget, bringing the construction contingency total to $240,000.
4.11(b). Approve and find that the purchase of Assessor’s Parcel Number 050 -500-026 (Parcel) from J.F. Shea Co., Inc., related to the Westside Sewer Interceptor Project (Project) for the Wastewater Utility (C -9661), is categorically exempt from review under the California Environmental Quality Act Guidelines, per Section 15317 - Open Space Con tracts or Easements and Section 15325(f) - Transfers of Ownership of Interest in Land to Preserve Existing Conditions.
4.11(d). Approve and award Bid Schedule No. 5347, for the purchase of Cisco Water System Network Equipment, to Key Code Media for a t otal cost not to exceed $202,023.58, for the City of Redding Water Utility.
4.11(e). Approve a project budget increase in the amount of $75,000 for the completion of Bid Schedule No. 5286, East Cypress Storm Drain Replacement Project.
4.11(f). Authorize the sole source purchase of Kubwater Polymer for the City of Redding Wastewater Treatment Plants for a not to exceed amount of $400,000 per year.
Redding City Council February 21, 2023
4.11(g). Authorize submission of a grant application to the United States Department of Transportation Rebuilding American Infrastructure with Sustainability and Equity grant program in the amount of $25,000,000 for the South Bonnyview Divergent Diamond Interchange and Corridor Capacity Improvement Project.
RECOMMENDATION: ACCEPT, ACKNOWLEDGE, ADOPT, APP ROVE,
AND/OR AUTHORIZE ALL ITEMS ON THE CONSENT CALENDAR.
5. APPOINTMENTS
Mayor Dacquisto
5.1. Accept the Mayor’s recommendation to re -appoint Barbara Ghidinelli as the City of Redding representative to the Shasta County Commission on Aging to serve a s econd two-year term beginning February 21, 2023, through January 6, 2025.
6. PUBLIC HEARINGS
A court challenge to action taken by the City Council on any project or decision may be limited to only those issues raised during the public hearing or in writ ten correspondence delivered to the City Council during, or prior to, the public hearing.
Development Services
6.1. Public Hearing to consider Rezoning Application RZ-2022-02356, by the City of Redding (City), and Ordinance amending the City's Zoning Or dinance regarding the short -term rental ordinance (Redding Municipal Code (RMC) Section
18.43.180).
Recommendation:
Conduct a public hearing and, upon conclusion, offer an Ordinance amending RMC Title 18, Zoning, Chapter 18.43, (Standards for Specific Land Uses) by amending Section 18.43.180 (Short-Term Rentals), for first reading by title only, waive the first reading; and direct the City Attorney to prepare and the City Clerk to publish a summary ordinance according to law.
Redding City Council February 21, 2023
9. REGULAR CALENDAR: REPORTS & COMMUNIC ATIONS OF DEPARTMENT S,
BOARDS, COMMISSIONS AND COMMITTEES
Development Services
9.4(a). Consider report regarding the formation of a Director's Committee to provide input for potential modifications to the Redding Municipal Code (RMC) related to Short Term Rentals.
Recommendation:
Accept report and provide direction to staff regarding the formation and focus of a director’s ad -hoc committee for the purpose of developing and recommending modifications to the RMC as it relates to shor t-term rentals; and if a committee is formed, the City Council should provide direction regarding the priority of ongoing efforts such as the Redding Riverfront Specific Plan, General Plan, and Tree Management Ordinance Committee.
Community Services
9.6(d). Consider Concession Agreement (C -7180) with TF Investment Group, LLC, for food and beverages at Carnegie Park.
Recommendation:
Authorize and approve the following actions:
(1) Approve the Concession Agreement (C -7180) with Todd Franklin, dba TF Investment Group, LLC, for a food truck court called “The Park” located at Carnegie Park for a 10 -year term commencing on March 1, 2023, and terminating on March 1, 2033, with m onthly rent in the amount of $1,020 with two percent increases annually;
(2) Authorize the City Manager to sign the Concession Agreement; and (3) Find that the adoption of the Concession Agreement is categorically exempt from review under the California Environmental Quality Act Guidelines pursuant to Section 15301 of Title 14 of the Californi a Code of Regulations – Existing Facilities, because renewal of the lease will not result in a significant impact on the environment and will not cause an expansion of the existing use.
11. COUNCIL TRAVEL REPORT(S)
City Council Member attendance at conference/meetings reimbursed at City expense. {Requirement of Assembly Bill 1234}
[A-050-060]
Information Only
Redding City Council February 21, 2023
12. SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS
FOR FUTURE CITY COUNCIL MEETINGS
13. ADJOURNMENT
Pursuant to the Brow n Act, non -confidential materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for inspection during normal business hours at the Office of the City Clerk, 3 rd Floor, City Hall, 777 C ypress Avenue, Redding, California.
City Council Meetings will be televised live on Shasta Community Access Channels via Charter/Spectrum Cable channel 181 , and will be rerun on Thursday at 12:30 p.m. during the week in which the meeting i s held. Additionally, the meeting can be viewed online at the following: http://scac.cablecast.tv:8080/CablecastPublicSite/watch/4?channel=1. Video of the City Council meet ings can also be viewed on the City’s web site at http://www.cityofredding.org/. Open the City’s meetings and agendas portal; Click on tab named "Meetings Videos" and select Redding City Council under “Available Archives 2023” select the desired date, then click on “video” to view the meeting.
In compliance with Title II of the Americans with Disabilities Act, the City of Redding will make available to persons with disabilities modifications or accommodations including auxiliary aids or se rvices necessary to participate in public meetings. A person needing assistance should contact the Redding City Clerk by telephone at (530) 225 -4447 or in person, or by mail at 777 Cypress Avenue, 3 rd Floor, Redding, California 96001 at least three (3) working days in advance.
The City of Redding will ensure that no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination under any of its projects, activities, services, or business opportunities on the basis of race, color, national origin, age, sex, or disability, as afforded by Title VI of the Civil Rights Act of 1964 and related statutes as amended. All persons, regardless of their citizenship status, are covered under this regulation.
Questions, complaints, or requests for accommodations or additional information may be forwarded to the ADA & Title VI Coordinator at 777 Cypress Avenue, Attn: Personnel Dept., Redding, California 96001, Phone (530) 225-4065.
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Presentation by Todd Jones , President of the Shasta Economic Development Corporation , providing an update on current activities.
MEETING DATE: February 21, 2023
ITEM NO. 2A
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 2A--Presentation by Todd Jones, President of the Shasta Economic Development Corporation.
Steve Bade, Assistant City
Manager
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CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Presentation by the Redding Rodeo Association in honor of the Redding Rodeo's 75th Anniversary.
MEETING DATE: February 21, 2023
ITEM NO. 2B
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 2B--Presentation by the Redding Rodeo Association in honor of the Redding Rodeo's 75th Anniversary.
Sharlene Tipton, Interim City
Clerk
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CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve Minutes: Regular Meeting of January 17, 2023 ; Special Meeting - Closed Session of February 7, 2023; and Regular Meeting of February 7, 2023.
Attachments
Unofficial Minutes - Regular Meeting of January 17, 2023 Unofficial Minutes - Special Meeting - Closed Session of February 7, 2023 Unofficial Minutes - Regular Meeting of February 7, 2023 MEETING DATE: February 21, 2023
ITEM NO. 4(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4(a)--Approve City Council Minutes.
Sharlene Tipton, Interim City
Clerk
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1/17/2023
Unofficial Minutes Redding City Council, Regular Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
January 17, 2023, 6:00 PM
The City Council Chambers are fully open to the public in compliance with current guidelines from the California Department of Public Health regarding indoor meetings.
The meeting was called to order by Mayor Dacquisto with the following Council Members present:
Tenessa Audette, Mark Mezzano, Jack Munns, and Julie Winter.
Also present were: City Manager Barry Tippin, Assistant City Manager Sheri DeMaagd, Assistant City Manager Steve Bade, City Attorney Barry DeWalt, City Clerk Pamela Mize, and Executive Assistant Amber DalPoggetto.
The Pledge of Allegiance to the Flag was led by Mayor Dacquisto.
The Invocation was provided by Lori Moretti, Redding Police and Fire Departments’ Chaplain.
PRESENTATIONS
2A. Resolution honoring Sheri DeMaagd for her distinguished service to the City of Redding.
Mayor Dacquisto presented the Resolution and highlighted Ms. DaMaagd’s accomplishments.
City Manager Tippin, and Council Members Mezzano, Munns, and Winter expressed their appreciation for Ms. DaMaagd’s commitment to the City and dedication.
Ms. DeMaagd thanked the community, the City Council Members, and staff of the City of Redding.
A MOTION WAS MADE by Council Member Winter , seconded by Counc il Member Mezzano, to adopt Resolution No. 2023-001, a resolution of the City Council of the City of Redding, honoring Sheri DeMaagd for her distinguished service as the City of Redding’s Assistant City Manager and Director of Personnel.
AYES: Council Members - Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2023-001 is on file in the Office of the City Clerk.
PUBLIC COMMENT
Steve Kohn expressed frustration with the new parking charges the downtown area and its impact on local businesses and county offices.
Stacey Mea de and Christie Meradith spoke regarding changes to the ordinance for short term rentals to be heard at an upcoming Planning Commission meeting.
Susan Murray noted the increased number of break-ins and the issue of homeless people occupying vacant homes.
Sandi Thompson and Linda Masterson, community volunteers , stated their appreciation for the beauty of the Redding area, the amenities offered by the City, and the dedication of volunteers.
Nick Gardner voiced displeasure with the Big League Dreams contract.
Carrie Lavine and her son, Arthur Coller, described an incident with the Shasta County Sheriff’s Office and their treatment while being arrested in the City of Shasta Lake.
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Attachment: Unofficial Minutes - Regular Meeting of January 17, 2023 (4(a)--Approve City Council Minutes) 164
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CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar and each Report to City Council (staff report) is incorporated herein by reference:
4(a). Approve Minutes: Special Meeting – Closed Session of November 1, 2022.
4(b). Accept City of Redding Accounts Payable Register Nos. 11 and 12 ; and Payroll Register Nos. 12 and 13.
(1) Accounts Payable Register No. 11 for the period of December 1 , 2022, thr ough December 15 , 2022, for a total of $ 10,757,138.14 for check numbers 176024 through 176518, inclusive, ACH Transfer numbers 19109 through 19157 inclusive, Wire Transfer numbers 11998 through 12018, inclusive; and Accounts Payable Register No. 12 for the period of December 16, 2022, through December 30, 2022, for a total of $ 11,897,118.68 for check numbers 176519 through 176865, inclusive, Wire Transfer numbers 19158 through 19238, inclusive ACH Transfer numbers 12019 through 12030 inclusive; and (2) Payroll Register No. 12 for the period of November 27, 2022 through December 10, 2022, in the amount of $ 5,266,083.38 for check numbers 573946 through 574907; and check numbers 608602 through 608833, inclusive; and Payroll Register No. 13 for the period of December 11, 2022 through December 24, 2022, in the amount of $3,820,197.71 for check numbers 574908 through 575854; and check numbers 608771 through 608 855, inclusive; SUMMARY TOTAL: $31,740,537.91.
4(c). Accept the City of Redding’s Treasurer’s Report for the month of November 2022.
4.4(a). Adopt Resolution No. 2023-002, a resolution of the City Council of the City of Redding, accepting the 2022-2027 City of Redding Local Hazard Mitigation Plan, as approved by the Federal Emergency Management Agency.
4.5(a). Approve the issuance of Request for Proposals for electric utility line construction contractor services to address Redding Electric Utility’s aging distribution system infrastructure.
4.5(b). Authorize the following relativ e to Bid Schedule No. 5338, Commercial Electric Solid - State kWh/Demand Meters: (1) accept the apparent low bid by Anixter, Inc., and award to Anixter, Inc., for an annual evaluated cost of $198,820.75, not inclusive of sales tax. The contract period sha ll be from February 1, 2023, through January 31, 2024; (2) authorize the Purchasing Officer to extend the bid award annually with Anixter, Inc., through January 31, 2026, if mutually agreeable, with all terms and conditions remaining the same; the contract may be extended annually for two additional one-year periods through January 31, 2026, and price adjustments may be made in direct proportion to a Producer Price Index; and (3) authorize the City Manager to approve changes to future pricing terms and policies as needed due to inflation and unstable economic conditions.
4.5(c). Authorize the purchase of three underground line trucks and two underground inspector trucks using Sourcewell contract pricing with Altec Industries, Inc., at a cost of $796,428.17 for Redding Electric Utility.
4.6(a). Authorize and approve the following actions relative to the 2023 – 2027 Fourth of July Freedom Festival (Freedom Festival): (1) approve the Memorandum of Agreement with The McConnell Foundation for the purpose of accepting funding of $105,000 each year for the fireworks displays; and authorize the Mayor to execute said Agreement; (2) authorize sole source and approve the Production Agreement for the Freedom Festival Fireworks Display with Pyro Spectaculars North, Inc., for the annual Freedom Festival firework show for five years (through July 4, 2027); and authorize the Mayor to execute said Agreement; and (3) find that this activity is categorically exempt from review under the California Environmental Quality A ct Guidelines, pursuant to Section 15301 (Existing Facilities), Section 15304 (Minor Alterations to Land), and Section 15323 (Normal Operations of Facilities for Public Gatherings).
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Attachment: Unofficial Minutes - Regular Meeting of January 17, 2023 (4(a)--Approve City Council Minutes) 165
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4.6(b). Authorize the following actions relative to the Carter House building located in Caldwell Park at 48 Quartz Hill Road: (1) approve an Amended and Restated Land and Building Lease Agreement (C-4054) with North Valley Art League for the Carter House in Caldwell Park through June 30, 2033, with an option to extend upon mutual agreement, at a monthly rental rate of $675.05; and (2) find that the adoption of the Amended and Restated Lease is categorically exempt from review under the California Environmental Quality Act Guidelines pursuant to Section 15301 of Title 14 of the California Code of Regulations – Existing Facilities, because renewal of the lease will not result in a significant impact on the environment and will not cause an expansion of the existing use.
4.6(c). Adopt Resolution No. 2023-003, a resolution of the City Council of the City of Redding approving and adopting the 77th Amendment to City Budget Resolution No. 2021 -078 appropriating $60,000 from the Southwest Quadrant of the Park In -Lieu Fund for environmental studies and services, permits, materials, and contract management for the proposed Jenny Creek Trail Project; and authorize the City Manager, or designee, to execute all documents necessary to implement the project should it be approved after environmental review.
4.6(d). Approve and ratify the City of Redding Community Services Department’s submittal of a Boating Access Program grant application in an amount not to exceed $600,000 to provide funding assistance for boat ramp and fishing facility operations and maintenance at multiple river access locations.
Margie Cantrell stressed her concern that enlarging the Turtle Bay boat ramp would limit the Rodeo Grounds parking and seating areas.
Community Services Director Kim Niemer clarified that the grant is only for maintenance costs for existing boat ramps, not for new or enlarged ramps.
4.6(e). Authorize the City Manager to execute the Amended and Restated Memorandum of Understanding (C-6532) with the Colt 45s for year -round maintenance, field preparation, and scheduling at Tiger Field, and se curity services at Tiger Field, South City Park, and the adjacent parking lots through June 30, 2024.
4.7(a). Adopt Resolution No. 2023-004, a resolution of the City Council of the City of Redding , authorizing the City Treasurer to open a public funds money market account with Northern California National Bank; and designate the authorized account signers as indicated in the resolution.
4.7(b). Adopt Resolution No. 2024-005, a resolution of the City Council of the City of Redding , authorizing the City Treasurer to open a public funds money market account with Golden Valley Bank; and designate the authorized account signers as indicated in the resolution.
4.11(a).Adopt Resolution No. 2023-006, a resolution of the City Council of the City of Redding , authorizing the submittal of a grant application by the City of Redding Water Utility to the State of California Department of Water Resources 2022 Urban Community Drought Relief Grant Program in an amount not to exceed $31,000,000 for drought relief proj ects and programs.
4.11(b).Authorize the following actions relative to Request for Proposals, Schedule No. 5337, Water, Wastewater, and Solid Waste Utilities Cost -of-Service and Utility Rate Study Update Project: (1) award to NBS of San Francisco, California; (2) authorize the Mayor to execute a Consulting and Professional Services Contract for a not -to-exceed fee of $180,990 with NBS; and (3) authorize the City Manager to approve contract amendment increases up to $20,000.
4.11(c).Accept Bid Schedule No. 5277 (Job No. 2666), Cape Seal 2022 Project, awarded to VSS International, Inc., as satisfactorily complete, with a final cost of $2,775,864.67.
4.11(d).Accept Bid Schedule No. 5233 (Job No. 2633), Replace Asphalt Concrete Surfacing 2021 Project, awarded to J.F. Shea Construction, Inc., as satisfactorily complete, with a final cost of $2,448,421.62.
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Attachment: Unofficial Minutes - Regular Meeting of January 17, 2023 (4(a)--Approve City Council Minutes) 166
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4.15(b).Adopt Resolution No. 2023-007, a resolution of the City Council of the City of Redding , amending the Redding Independent Employees’ Organizat ion Supervisory/Confidential Exempt Schedule of Classifications and Salary Ranges to change the classification series titles of Systems Analyst/Programmer I, II, III, to Applications Analyst I, II, III; and add the Electrical Technician classification to t he International Brotherhood of Electrical Workers-Electric Unit Schedule of Wage Rates pursuant to a bargaining unit modification, effective January 8, 2023.
A MOTION WAS MADE by Council Member Mezzano, seconded by Council Member Winter, that the foregoi ng items on the Consent Calendar be accepted, acknowledged, adopted, approved, ratified, and/or authorized as recommended.
The Vote:
AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution Nos. 2023-002 through 2023-007 are on file in the Office of the City Clerk.
APPOINTMENTS
5.1. Mayor's appointment to the City's Tree Management Ordinance Update Committee.
A MOTION WAS MADE by Council Member Mezzano, seconded by Council Member Winter, to approve Mayor’s recommendation to appoint Kristina Randle to fill an unscheduled vacancy on the City of Redding’s Tree Management Ordinance Update Committee.
The Vote:
AYES: Council Members – Audette, Mezzano, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – Munns
Council Member Munns left the Council dais at 7:05 p.m. and returned at 7:06 p.m.
PUBLIC HEARNGS
6.1. Public Hearing – Resolution approving the Five-Year Capital Improvement Plan for the City of Redding.
Public Works Director Chuck Aukland summarized the Report to City Council (staff report), incorporated herein by reference.
The hour of 7:06 p.m. having arrived, Mayor Dacquisto opened the Public Hearing.
Mayor Dacquisto determined that no one present wished to address this matter and closed the Public Hearing.
The Affidavit of Publication – Notice of Public Hearing is on file in the Office of the City Clerk.
A discussion amongst the Council ensued.
A MOTION WAS MADE by Council Member Winter , seconded b y Council Member Audette, to adopt Resolution No. 2023-008, a resolution of the City Council of the City of Redding, approving the City of Redding’s C apital Improvement Plan for Fiscal Years 2022−23 to 2027−28.
The Vote:
AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution No. 2023-008 is on file in the Office of the City Clerk.
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REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,
BOARDS, COMMISSIONS AND COMMITTEES
9A. City Council Liaison Assignments for calendar year 2023.
Mayor Dacquisto highlighted the Report to the City Council (staff report) , incorporated herein by reference.
The City Council took no formal action on this informational item.
9.10(a).Report – City of Redding Annual Comprehensive Financial Report for the year ended June 30, 2022.
Clerk’s Note: Item 9.10(a) was moved before Item No. 9B at the request of Mayor Dacquisto.
Finance Officer Gregory Robinett provided and overview of the Report to City Council (staff report), and a PowerPoint presentation, both incorporated herein by reference.
A MOTION WAS MADE by Council Member Mezzano, seconded by Council Member Winter, to accept the City of Redding Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022. The Vote: Unanimous ayes.
The City of Redding Annual Comprehensive Financial Report for the year ended June 30, 2022, is on file in the Office of the City Clerk.
9B. Report – Independent Auditors for the year ended June 30, 2022.
Finance Officer Gregory Robinett summarized the Report to City Council (sta ff report), and provided a PowerPoint presentation, both incorporated herein by reference.
A MOTION WAS MADE by Council Member Mezzano , seconded b y Council Member Audette, to approve the Audit Committee’s recommendation to a ccept the Statement on Auditing Standards AU-C 260 Letter and the draft copy of the Single Audit Reports for the year ended June 30, 2022. The Vote: Unanimous ayes.
9.1(a). Resolution – New Assistant City Attorney position within the City Attorney's Office.
City Manager Tippin highlighted the Report to C ity Council (staff report) , incorporated herein by reference.
Steve Kohn confirmed his questions were answered by City Manager Tippin’s summarization and had no further comment.
A discussion amongst the council ensued.
A MOTION WAS MADE by Mayor Dacquisto, seconded by Council Member Mezzano to table this item with the option to bring it back for discussion at a future meeting. The motion was replaced by the approved motion to amend below.
A MOTION TO AMEND WAS MADE by Council Member Winter , seconded b y Council Member Munns, to: (1) approve the addition of a full time Assistant City Attorney; and (2) adopt Resolution No. 2023-009, a resolution of the City Council of the City of Redding, approving and adoptin g the 78th Amendment to City Budget Resolution No. 2021-078 appropriating $50,980 to the City Attorney’s Office for the addition of a full - time Assistant City Attorney for fiscal year 2022-23.
The Vote:
AYES: Council Members – Audette, Munns, and Winter
NOES: Council Members – Mezzano and Dacquisto
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution No. 2023-009 is on file in the Office of the City Clerk.
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Attachment: Unofficial Minutes - Regular Meeting of January 17, 2023 (4(a)--Approve City Council Minutes) 168
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9.15(a).Resolution – California Public Employee's Retirement System (CalPERS) 180 day wait period with regard to re-hiring Becky Kraft in the position of Assistant Engineer, effective January 18, 2023.
A MOTION WAS MADE by Council Member Mezzano, seconded by Council Member Winter, to adopt Resolution No. 2023-010, a resolution of the City Council of the City of Redding approving a 180-day wait period exception of Becky Kraft as Assistant Engineer for the City of Redding pursuant to Government Code sections 7522.56 and 21224, effective January 18, 2023, for up to 480 hours ; and granting the City Manager authority to execute the necessary hiring documentation. The resolution, if approved, would allow retired Assistant Engineer, Becky Kraft, to be rehired as an annuitant in the Public Works Department to assist with training replacement staff in performing tasks and duties once performed by the retiree.
The Vote:
AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution No. 2023-010 is on file in the Office of the City Clerk.
SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS FOR
FUTURE CITY COUNCIL MEETINGS
At Council Member Mezzano’s suggestion, an option for alternate direction regarding short-term vacation rentals will be included in the staff report for discussion at a future Council meeting.
ADJOURNMENT
There being no further business at the hour of 7:55 p.m., Mayor Dacquisto declared the meeting adjourned.
APPROVED:
_______________________________
Michael Dacquisto, Mayor
ATTEST:
_______________________________
Pamela Mize, City Clerk
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Unofficial Minutes Redding City Council, Special Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
February 7, 2023, 5:15 PM
The City Council Chambers are fully open to the public in compliance with current guidelines from the California Department of Public Health regarding indoor meetings.
The meeting was called to order by Vice Mayor Mark Mezzano with the following Council Members present: Tenessa Audette, Jack Munns, and Julie Winter. Mayor Michael Dacquisto participated telephonically.
Also present were: City Manager Barry Tippin, Assistant City Manager Steve Bade, and City Attorney Barry DeWalt, and Assistant City Clerk Anette Cates . Interim City Clerk Sharlene Tipton called the roll prior to leaving the Closed Session meeting.
PUBLIC COMMENT
Vice Mayor Mezzano determined that no one present wished to address the items agendized for Closed Session.
CLOSED SESSION
At the hour of 5:15 p.m., Vice Mayor Mezzano opened the Special Meeting and announced that the Council would adjourn to Closed Session.
3A. Closed Session pursuant to California Government Code Section 54956.9(d)(1):
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Weaver v. City of Redding; WCAB Case No. ADJ15713990
Pursuant to Government Code section 54957.1(a), the City Council took no reportable action on this item.
3B. Closed Session pursuant to California Government Code Section 54956.8:
CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Locations: 4301 Eastside Road, APN 048-130-024; and
4231 Eastside Road, APN 048-130-025
City Negotiator: Public Works Director Aukland
Parties: City of Redding and Albert Shufelberger 1998 Trust Under Negotiation: Price and Terms
Pursuant to Government Code section 54957.1(a), the City Council took no reportable action on this item.
3C. Closed Session pursuant to California Government Code Section 54957.6:
CONFERENCE WITH LABOR NEGOTIATOR
Designated Agency Representative: Interim Personnel Director Martinez Employee Organizations:
1. Local 1934 of International Association of Fire Fighters;
2. United Public Employees of California - Redding Technical Unit; and
3. International Brotherhood of Electrical Workers 1245 AFL-CIO - Electric
Pursuant to Government Code section 54957.1(a), the City Council took no reportable action on this item.
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ADJOURNMENT
There being no further business, Vice Mayor Mezzano declared the meeting adjourned at the hour of 5:59 p.m.
APPROVED:
_______________________________
Mark Mezzano, Vice Mayor
ATTEST:
______________________________
Sharlene Tipton, Interim City Clerk
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Unofficial Minutes Redding City Council, Regular Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
February 7, 2023, 6:00 PM
The City Council Chambers are fully open to the public in compliance with current guidelines from the California Department of Public Health regarding indoor meetings.
The meeting was called to order by Vice Mayor Mezzano with the following Council Members present: Tenessa Audette, Jack Munns, and Julie Winter. Mayor Michael Dacquisto participated telephonically. All votes were taken by roll call.
Also present were: City Manager Barry Tippin, Assistant City Manager Steve Bade, City Attorney Barry DeWalt, Interim City Clerk Sharlene Tipton, and Assistant City Clerk Anette Cates.
The Pledge of Allegiance to the Flag was led by Greg Robinett.
The Invocation was provided by Debbie Ivy, Redding Police and Fire Departments’ Chaplin.
PRESENTATIONS
2A. Resolution honoring City of Redding Treasurer and Director of Finance Allyn Clark.
A MOTION WAS MADE by Council Member Mezzano, seconded by Council Member Munns, to adopt Resolution No. 2023-011, a resolution of the City Council o f the City of Redding, honoring City of Redding Tre asurer and Director of Finance Allyn Clark. The Vote taken by roll call:
AYES: Council Members - Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members - None
ABSTAIN: Council Members - None
ABSENT: Council Members - None
Resolution No. 2023-011 is on file in the Office of the City Clerk.
2B. Presentation by Youth Options Shasta providing past, present, and future activities of the Youth Action Council.
Jennifer Coulter, Program Director for Youth Options Shasta, provided copies of the Youth Action Council 2022 Newsletter, incorporated herein by reference, and introduced the members of the Youth Action Council.
The City Council took no action on this informational item.
PUBLIC COMMENT
Christine Cage, Newman Jones, Greg White, Renae Disney, Melissa Denser, Henry Correa, Jonas Muse, and Henry Chapman, thanked the City Council and No Boundaries Transitional Housing for their help in changing each of their lives.
Jill Cruz, Shelley Alameda, Susan Weiss, and Robert Trygar, expressed their frustration regarding the homeless issue within the City of Redding.
Ray Simon, Campus Pastor of the Good News Rescue Mission, updated the City Council on his findings since working for the Good News Rescue Mission.
Justin Wandro, Director of Development and Community Engagement at the Good News Rescue Mission, invited the City Council to its Community Forum on homelessness called Redding Restart addressing homelessness on March 3, 2023.
Jonathan Anderson, Executive Director of the Good News Rescue Mission, explained that it takes many agencies working together in partnership to make a difference in what is happening in Redding regarding the homeless. He commended City Manager Tippin, Assistant City Manager Bade, City Attorney DeWalt, and Police Chief Bill Schueller for their leadership.
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Margy Cantrell and Steve Kohn voiced their dissatisfaction of the downtown parking and the price of hourly parking.
Mimi Moseley and Marty Moseley praised the Good News Rescue Mission and its mentor program.
Ericka Jones, Volunteer President of the Shasta Library Foundation, commended the community of its support for the Shasta Libraries’ fund raising program.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar and each Report to City Council (staff report) is incorporated herein by reference:
4(a). Approve Minutes: Regular Meeting of November 1, 2022; Special Meeting - Closed Session of November 15, 2022; Regular Meeting of November 15, 2022; Regular Meeting of December 6, 2022; Special Meeting - Closed Session of December 13, 2022; and Special Meeting - Closed Session of January 17, 2023.
4(b). Accept the following City of Redding Accounts Payable and Payroll Registers:
(1) Accounts Payable Register No. 13 for the period of January 1, 2023 , through January 13, 2023, for a total of $8,756,838.16 for check numbers 176866 through 177210, inclusive, ACH Transfer numbers 19239 through 19269, inclusive, Wire Transfer numbers 12031 through 12059 , inclusive; and Payroll Register No. 14 for the period of December 25 , 2022, through January 7, 2023, for a total of $ 4,031,694.38 for check numbers 575855 through 576842; and check numbers 608856 through 608873, inclusive; SUMMARY TOTAL: $12,788,532.54.
4(c). Accept the City of Redding’s Treasurer’s Report for the month of December 2022.
4.1(b). Approve and ratify the execution of a License Agreement between The McConnell Foundation (Licensor) and the City of Redding (Licensee) providing parking on Licensor property located at 1313 California Street.
4.2(a). Adopt Resolution No. 2023-012, a resolution of the City Council of the City of Redding, adopting and approving the 79th Amendment to City Budget Resolution No. 2021 -078 appropriating $28,910 for professional services and consulting related to administration of the Passenger Facility Charges program at the Redding Regional Airport.
4.2(b). Authorize and approve the following actions: (1) adopt Resolution No. 2023 -013, a resolution of the City Council of the City of Redding, to authorize the City Manager, or designee, to submit grant applica tions, and execute any agreements and subsequent documentation to facilitate acceptance, for the State of California Department of Housing and Community Development Regional Early Action Planning Grants of 2021 (REAP 2.0) Higher Impact Transformative Program, for the following project: $1 million for adjacent parcels located at 815 and 825 Parkview Avenue and 2520 Leland Avenue (Parkview Project); (2) adopt Resolution No. 2023-014, a resolution of the City Council of the City of Redding, to authorize the City Manager, or designee, to submit grant applications, and execute any agreements and subsequent documentation to facilitate acceptance, for the State of California Department of Housing and Community Development Regional Early Action Planning Grants of 20 21 (REAP 2.0) Higher Impact Transformative Program, for the following project: $10 million for the Linden Canyon Project; (3) determine that applying for grant funding is not considered a project under the California Environmental Quality Act; and (4) determine that applying for grant funding is exempt from review under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3).
4.5(a). Authorize the following modifications relative to the previously awarded Bid Schedule No. 5220, Single -Phase, P ad-Type Distribution to Howard Industries, Inc: (1) accept a proposed change in contract pricing based on Howard Industries, Inc.’s, price request; (2) authorize staff to amend Purchase Order 114711, previously issued to Howard Industries, Inc., for a tot al of $279,684.24, to the increased amount of $325,803.60; and (3) authorize staff to amend Purchase Order 114116, previously issued to Howard Industries, Inc., for a total of $220,010.51, to the increased amount of $256,312.24.
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4.5(b). Authorize the foll owing relative to Bid Schedule No. 5331, Three -Phase, Pad -Type Distribution Transformers for the Redding Electric Utility: (1) a ward to WEG Transformers USA, LLC, (WEG) for the pretax amount of $1,072,779; (2) authorize the Purchasing Officer to extend th e bid award annually with WEG through November 30, 2027, if mutually agreeable, with all terms and conditions remaining the same, and price adjustments per WEG’s price adjustment policy for long term customers; and (3) authorize the City Manager, or designee, to approve changes to future pricing terms and policies as needed due to inflation and unstable economic conditions.
4.6(a). Authorize and approve the following actions regarding Parcel A, a 7.88 -acre property of the Silverstone Unit 2 (AMND -2020-01135, S-2019-00280) map recordation of Book 25 of Map, Page 37: (1) approve the Agreement for the Construction, Operation, and Maintenance of Recreational Facilities at the Future School in the Shastina Ranch Development (Agreement) for the construction of a future school in the Shastina Ranch Development with the Pacheco Union School District (District); and (2) direct staff to prepare, and the Mayor to execute, a deed to transfer ownership of the property to the District in compliance with the State of California Housing and Community Development Surplus Land Act.
Cathy Henderson, Superintendent of the Pacheco Union School District, and Dale Hansen, Pacheco Union School District employee, both spoke in support.
4.8(a). Authorize the Redding Fire Department to apply for a grant from the Federal Emergency Management Agency Assistance to Firefighters Grant in the amount of $1,000,000, with a 10 percent match requirement, for the replacement of parts for the Self -Contained Breathing Apparatus.
4.11(a).Authorize the purchase of Atlas Copco blower in the amount of $189,526.98 for the City of Redding Clear Creek Wastewater Treatment Plant; and approve additional funding in an amount not to exceed $30,000 for taxes and contingency.
4.11(b).Authorize the following actions relative to Bid Schedule No. 5324 (Job No. 2687), Replace Asphalt Concrete Surfacing 2022: (1) award to JV Lucas Paving, Inc., in the amount of $1,010,381.50; (2) approve an additional $207,000 to cover the cost of contract administration and inspection fees; (3) approve $200,000 to provide construction contingency funding; (4) approve $105,000 for project development costs; (5) a uthorize the City Manager to approve additional increases, in either the construction management or construction contingency amounts, up to a total of $25,000; and (6) find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, per Section 15301 (Existing Facilities).
4.11(c).Adopt Resolution of Intention No. 2023-015, a resolution of the City Council of the City of Redding, to form Landscape Maintenance District (LMD) 01 -23 (Rancho Industrial Park) and approve the following: (1) Engineer's Report as filed with the City Clerk; (2) confirmation of the map of the assessment district contained in the Engineer's Report; (3) m ailing of notices and ballots; and (4) setting the Public Hearing and Election for April 4, 2023, at 6:00 p.m., in the City Council Chambers located at 777 Cypress Avenue, Redding, Ca lifornia, regarding the formation of LMD 01 –23 (Rancho Industrial Park) pursuant to the Landscape and Lighting Act of 1972 and Government Code 53753(b).
4.11(d).Authorize the following actions relative to the Reimbursement Agreement (Agreement) with Sierra Pacific Land and Timber Company for the design and construction of the replacement and upsizing of the sewer line along Trinity Street from Court Street to Continental Street for the Salt Creek Heights Subdivision project: (1) approve the Agreement in the amount of $1,940,000; (2) authorize the City Manager to approve additional increases based on the construction bid amounts or change orders required during the course of construction up to a total of $300,000; and (3) f i n d t h e a c t i o n categorically e xempt from review under the California Environmental Quality Act Guidelines, per Sections 15301 (Existing Facilities), 15302 (Replacement and Reconstruction), and 15303 (New Construction or Conversion of Existing Structures).
4.12(a).Authorize the Mayor or Vice Mayor to sign and send a letter to .Gov Domain Registration requesting the domain name www.cityofredding.gov be delegated to the City of Redding.
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4.14(a).Authorize the City Attorney to draft and execute an amendment to the Legal Services Agreement with Allen Glaessner Hazelwood Werth (C-8394) in the matter of Lang v. City of Redding to add $50,000 to the maximum compensation payable.
A MOTION WAS MADE by Council Member Munns, seconded by Council Member Audette, that the foregoing items on the Consent Calendar be accepted, acknowledged, adopted, approved, and/or authorized as recommended.
The Vote taken by roll call:
AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution Nos. 2023-012 through 2023-015 are on file in the Office of the City Clerk.
REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,
BOARDS, COMMISSIONS AND COMMITTEES
9.1(a). Appointment of Greg Robinett as Director of Finance and City Treasurer for the City of Redding.
City Manager Barry Tippin highlighted the Report to the City Council (staff report), incorporated herein by reference.
Steven spoke in support.
A MOTION WAS MADE by Council Member Audette , seconded b y Council Member Munns, to: (1) approve the appointment of Greg Robinett as the Director of Finance effective February 4, 2023; and (2) appoint Mr. Robinett to fill the unexpired term to 2024 of the current City Treasurer, Allyn Clark.
The Vote taken by roll call:
AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
9.4(a). Award of Bid Schedule No. 5314 to update the Redding Riverfront Specific Plan and prepare the Environmental Impact Report.
Director of Development Services Jeremy Pagan presented the Report to City Council (staff report) and, in conjunction with Dan Amsden, Principal and Director of Planning and Design Services for Northern California for MIG, Inc., provided a PowerPoint presentation, both incorporated herein by reference.
Rebeca Ladron de Gue vara, President of the Wintu Turtle Bay Bird Sanctuary , Steve Woodrum, Steve Kohn, Mercy Kravitz, Janet Ulrich, Bill Walker, Aly Evirs, Robert, Nick Gardner, Radley Davis , Jonathan Freeman , Kathy Stainebrook , Cindy Schonholtz , and David Ledger, requested the City Council to vote against the Redding Riverfront Specific Plan.
Julie Dyar, General Manager of Advance Redding, spoke in favor.
A discussion amongst the Council ensued.
A SECOND MOTION WAS MADE by Mayor Dacquisto , seconded by Vice Mayor Mezzano, to reject the all three proposals and direct staff to bring back an item to reallocate the funds as the Council sees fit.
The Vote taken by roll call:
AYES: Council Members – Mezzano and Daquisto
NOES: Council Members – Audette, Munns, and Winter
ABSTAIN: Council Members – None
ABSENT: Council Members – None
The Second Motion failed and the original motion was then voted upon.
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A MOTION WAS MADE by Council Member Audette, seconded by Council Member Winter, to approve the following actions relative to Bid Schedule No. 5314, to update the Redding Riverfront Specific Plan (RRSP), and prepare the Environmental Impact Report:
(1) authorize staff to negotiate a contract with MIG/Populous for preparation of an update to the RRSP and associated Environmental Impact Report, in an amount not to exceed $1,230,043; (2) au thorize the Mayor to execute the contract; and (3) authorize the City Manager to approve amendment(s) to the contract for an additional amount not to exceed $19,957 for contingency purposes.
The Vote taken by roll call:
AYES: Council Members – Audette, Munns, and Winter
NOES: Council Members – Mezzano and Dacquisto
ABSTAIN: Council Members – None
ABSENT: Council Members – None
9.5(c). Redding Electric Utility's (REU) Quarterly Financial Report and Industry Activities Update.
REU Finance Manager Joseph Bowers summarized the Report to the City Council (staff report) and provided a PowerPoint presentation, both incorporated herein by reference.
A MOTION WAS MADE by Council Member Winter , seconded by Council Member Munns, to accept REU’s Fiscal Year 2022 -23 Second Quarter Financial Report and Industry Activities Update.
The Vote taken by roll call:
AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
9.6(c). Resolution establishing a City Council Policy regarding naming Park Facilities.
Community Services Director Kim Niemer presented the Report to the City Council (staff report), incorporated herein by reference.
Ericka Jones spoke in favor.
A MOTION WAS MADE by Council Member Winter , seconded by Council Member Mezzano, to adopt Resolution No. 2023 -016, a resolution of the City Council of the City of Redding, establishing City Council Policy No. 1203 outlining the procedures for naming City of Redding Park Facilities.
The Vote taken by roll call:
AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution No. 2023-016 is on file in the Office of the City Clerk.
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9.15(a).Resolution recognizing the formation of the International Brotherhood of Electric Workers Local 1245 AFL-CIO Power Production Unit.
Interim Personnel Director Kelly Martinez presented the Report to the City Council (staff report), incorporated herein by reference.
A MOTION WAS MADE by Council Member Munns , seconded by Council Member Audette, to adopt Resolution No. 2023-017, a resolution of the City Council of the City of Redding, certifying the International Brotherhood of Electrical Workers Local Union 1245 AFL-CIO as an Exclusively Recognized Employee Organization of the City of Redding representing the Power Production Unit (IBEW Power Production) in accordance with the City’s Employer/Employee Resolution, Resolution No. 2012-091, and the Meyers-Milias- Brown Act. IBEW Power Production will be providing representation for classifications assigned to the Redding Power Plant which were formerly represented by the International Brotherhood of Electrical Workers Local Union 1245 AFL-CIO Electric Unit.
The Vote taken by roll call:
AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution No. 2023-017 is on file in the Office of the City Clerk.
9.15(b).Resolution approving an exception to the California Public Employee's Retirement System (CalPERS) 180 day wait period with regard to re-hiring Sheri DeMaagd.
Interim Personnel Director Kelly Martinez summarized the Report to the City Council (staff report), incorporated herein by reference.
A MOTION WAS MADE by Council Member Mezzano, seconded by Council Member Winter, to adopt Resolution No. 2023-018, a resolution of the City Council of the City of Redding, approving a 180 -day wait period exception and single interim appointment of Sheri DeMaagd as Assistant City Manager for the City of Redding pursuant to Government Code sections 7522.56 and 21221(h), effective February 21, 2023, for up to 1,040 hours; and granting the City Manager authority t o execute the necessary hiring documentation, thereby allowing retired Assistant City Manager/Personnel Director, Sheri DeMaagd, to be rehired as an annuitant in the City Manager’s Office to assist with the implementation of the City-wide Enterprise Resource Planning system.
The Vote taken by roll call:
AYES: Council Members – Audette, Mezzano, Munns, Winter, and Dacquisto NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution No. 2023-018 is on file in the Office of the City Clerk.
COUNCIL TRAVEL REPORT
Mayor Dacquisto, Vice Mayor Mezzano, and Council Members Audette and Munns, each attended the League of California Cities New Mayors and Council Members Academy in Sacramento, California, from January 18-20, 2023.
SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS FOR
FUTURE CITY COUNCIL MEETINGS
At Vice Mayor Mezzano’s suggestion, a consensus of the Council directed staff to return at a future meeting with information for the Council’s consideration regarding forming an Ad Hoc Committee under the direction of Director of D evelopment Services Jeremy Pagan to appoint members of the community that own/manage short -term rentals to review the City of Redding’s current Short -Term Rental Ordinance and provide any recommended changes to be implemented.
At Vice Mayor Mezzano’s suggestion, a consensus of the Council directed staff to return to a future meeting with information for Council’s consideration regarding funding for a trash dumpster to be placed towards the back of Linden Canyon to assist the homeless with cleaning up debris.
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At Vice Mayor Mezzano’s suggestion, a consensus of the Council directed staff to return to a future meeting with information for Council’s consideration regarding funding for day bus passes to provide transportation for the homeless to the Shasta County Project Homeless Connect event at the Convention Center to be held in May 2023.
ADJOURNMENT
There being no further business , at the hour of 9:52 p.m. Vice Mayor Mezzano declared the meeting adjourned.
APPROVED:
_______________________________
Mark Mezzano,Vice Mayor
ATTEST:
_______________________________
Sharlene Tipton, Interim City Clerk
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Attachment: Unofficial Minutes - Regular Meeting of February 7, 2023 (4(a)--Approve City Council Minutes)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept City of Redding Accounts Payable Register No. 14; and Payroll Register No. 15.
Fiscal Impact
There is no fiscal impact to accepting the registers.
Alternative Action
The City Council could choose to not accept the registers and provide direction to staff.
Background/Analysis
Attached are the Accounts Payable and Payroll Registers as follows:
Accounts Payable:
(1) Register Number 14 for the period January 14, 2023 – January 31, 2023, in the amount of $19,210,767.56.
Payroll:
(1) Register Number 15 for the period January 8, 2023 – January 21, 2023, in the amount of $4,155,442.96.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.
MEETING DATE: February 21, 2023
ITEM NO. 4(b)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4(b)--City of Redding Accounts Payable and Payroll Registers.
Greg Robinett, Director of
Finance/City Treasurer
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Report to Redding City Council February 9, 2023
Re: 4(b)--Accounts Payable and Payroll Registers Page 2
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
Accounts Payable Register No. 14 and Payroll Register No. 15 Packet Pg. 26
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Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 28
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 29
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 30
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 31
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 32
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 33
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 34
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 35
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 36
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 37
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 38
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 39
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 40
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 41
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 42
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 43
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 44
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 45
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 46
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 47
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 48
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 49
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 50
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 51
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 52
Attachment: Accounts Payable Register No. 14 and Payroll Register No. 15 (4(b)--Accounts Payable and Payroll Registers)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve the Second Amendment to the Real Estate Purchase and Sale Agreement with Crosland Barnes Group (C-9146), for 3.7 acres of City of Redding -owned property located at 5300 Venture Parkway, Stillwater Business Park Parcel 6 A (Assessor’s Parcel Number 054-220-028), thereby extending the close of escrow to March 31, 2023 ; and find the sale of the City -owned property is categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (Surplus Government Property Sales).
Fiscal Impact
There is no fiscal impact to extending the close of escrow . All other terms of the original agreement remain intact, only the date of closing will change.
Alternative Action
The City Council (Council) could choose to not extend the escrow closing date, thereby canceling the original contract with Crosland Barnes Group, or it could choose to select a different date for closing, or to not sell the property at this time.
Background/Analysis
Crosland Barnes Group, submitted an offer to purchase the northern most portion of City of Redding (City)-owned property located at 5300 Venture Parkway (Assessor’s Parcel Number 054 -220-028), also known as Stillwater Business Park Parcel 6 A and depicted in the attached locat ion map.
Crosland Barnes Group is a real estate developer with a national portfolio of retail, commercial, and industrial properties. The intended use of Parcel 6 A is an industrial distribution facility for a local commercial client interested in expandin g its business and moving into a larger facility. The design phase of the anticipated development took longer than expected, and as a result, the buyer requested some additional time to move through the entitlements stage with the Planning Division . The plans MEETING DATE: February 21, 2023
ITEM NO. 4.1(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.1(a)--Second Amendment to Purchase and Sale Agreement with Crosland Barnes Group (C-9146)
Janelle Galbraith, Economic
Development, Innovation &
Equity Manager
Packet Pg. 53
Report to Redding City Council February 10, 2023
Re: 4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A Page 2
for the new development have been submitted to the Planning Division; however, additional time is being requested to complete the approval process. This is the second extension of the original agreement and extends the time for due diligence to March 31, 2023.
The sale, inclusive of this amendment, of the City -owned property presents no significant impact on the environment and is therefore categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (Surplus Government Property Sales).
Council Priority/City Manager Goals
• This is a routine operational item.
Attachments
^Location Map Parcel 6A
Second Amendment to Purchase and Sale Agreement (C-9146) C-9146 Purchase and Sale Agreement
C-9146 - Amendment to Purchase and Sale Agreement
Packet Pg. 54
Packet Pg. 55
Attachment: ^Location Map Parcel 6A (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A)
SECOND AMENDMENT TO REAL ESTATE PURCHASE AND SALE
AGREEMENT
This Second Amendment to the Real Estate Purchase and Sale Agreement (“ Second Amendment”), is entered into this ____ day of _____________, 2023, with regard to that certain Purchase and Sale Agreement and Joint Escrow Instructions (“ Agreement”) dated January 24, 2022, and amended October 21, 2022, by and between THE CITY OF REDDING, a California municipal corporation (“ Seller”), and CROSLAND BARNES GRO UP (“Purchaser”), concerning that certain real property consisting of approximately 3.7 acres, in the Stillwater Business Park, Lot 6a (Assessor’s Parcel Number 054-220-028 (portion)), located at the northern portion of 5300 Venture Parkway in Redding, California (“Property”), as more particularly described in the Agreement.
WHEREAS, the parties desire to modify the Agreement pursuant to the terms as herein set forth.
AGREEMENT
NOW THEREFORE, in consideration of the mutual covenants set forth below and other good and valuable consideration, the receipt of sufficiency of which is hereby acknowledged by the parties hereto, it is agreed as follows:
1. All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Agreement. All references in the Agreement and/or this Second Amendment shall hereafter constitute a reference to the Agreement, as amended by this Second Amendment.
2. The parties hereby agree to amend the Agreement as more particularly set forth in paragraph 3 below.
3. The parties hereby acknowledge and agree that the Due Diligence Period (as set forth and defined in Section 9.1 of the Agreement) is hereby further extended to 5:00PM Pacific Time on March 31, 2023, for Lot 6a . All time periods in the Agreement that are calculated using the expiration of the Due Diligence Period shall mean and refer to the Due Diligence Period as extended by the terms of this Second Amendment.
4. The parties acknowledge that they have had input into the drafting of this Second Amendment, have had the opportunity to consult an attorney in connection herewith, and that any construction of this Second Amendment shall not be construed for or against any party, but rather shall be given a fair and reasonable interpretation, based on the plain language of this Second Amendment and the express intent of the parties herein.
DocuSign Envelope ID: 69F61CC8-F3D8-4485-8BC0-42425E6E96DA Packet Pg. 56
Attachment: Second Amendment to Purchase and Sale Agreement (C-9146) (4.1(a)--Second Amendment to PSA; Crosland Barnes Group;
5. This Second Amendment is intended to modify the Agreement and shall be deemed to amend any language in the Agreement which is contrary to the provisions set forth herein. Any covenant or provision of the Agreement which is not inconsistent with this Amendment shall remain in full force and effect.
6. This Second Amendment may be executed in any number of counterparts all of which taken together shall constitute one and the same instrument. An electronic signature (such as DocuSign) or a PDF or electronically transmitted signature on this Second Amendment shall be binding as an original.
[Signature Page Follows]
DocuSign Envelope ID: 69F61CC8-F3D8-4485-8BC0-42425E6E96DA Packet Pg. 57
Attachment: Second Amendment to Purchase and Sale Agreement (C-9146) (4.1(a)--Second Amendment to PSA; Crosland Barnes Group;
SIGNATURE PAGE
IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the day and year first above written.
SELLER:
THE CITY OF REDDING,
a California municipal corporation
By: ________________________
Michael Dacquisto, Mayor
PURCHASER:
Crosland Barnes Group
By: ___________________________
Ned Barnes, Managing Partner
ATTEST:
_____________________________
___________________, City Clerk
DocuSign Envelope ID: 69F61CC8-F3D8-4485-8BC0-42425E6E96DA Packet Pg. 58
Attachment: Second Amendment to Purchase and Sale Agreement (C-9146) (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Packet Pg. 59
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 60
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 61
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 62
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 63
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 64
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 65
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 66
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 67
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 68
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 69
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 70
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 71
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 72
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 73
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) Packet Pg. 74
Attachment: C-9146 Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater Parcel 6A) DocuBign Envelope ID: 85409811- 68A2- 4F2A- 802D- 543291D84F68
AMENDMENT AND REINSTATEMENT REAL ESTATE PURCHASE AND SALE
AGREEMENT
This Amendment and Reinstatement Real Estate Purchase and Sale Agreement Amendment and Reinstatement"), is entered into this 1qdayofOctober, 2022, with regard to that certain Purchase and Sale Agreement and Joint Escrow Instructions Agreement") dated January 24, 2022, by and between THE CITY OF BEDDING, a California municipal corporation (" Seller"), and CROSLAND BARNES GROUP Purchaser"), concerning that certain real property consisting of approximately 3.7 acres, in the Stillwater Business Park, Lot 6a ( Assessor' s Parcel Number 054- 220- 028 ( portion)), located at the northern portion of 5300 Venture Parkway in Redding, California (" Property"), as more particularly described in the Agreement.
WHEREAS, the parties desireto modify andreinstatethe Agreementpursuantto the terms as herein set forth.
AGREEMENT
NOW THEREFORE, in consideration of the mutual covenants set forth below and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto, it is agreed as follows:
1. All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Agreement. All references in the Agreement and/ or this Amendment andReinstatementshall hereafterconstitutea referenceto the Agreement, asamendedby this Amendment and Reinstatement.
2. The parties hereby agree to reinstate and amend the Agreement as more particularly set forth in paragraph 3 below.
3. The parties hereby acknowledge and agreethat the Due Diligence Period ( asset forth anddefinedin Section9.1of theAgreement) is herebyfurther extendedto 5:OOPMPacific Time on December 31, 2422, for Lot 6a. All time periods in the Agreement that are calculated using the expiration of the Due Diligence Period shall mean and refer to the Due Diligence Period as extended by the terms of this Amendment and Reinstatement.
4. The parties acknowledge that they have had input into the drafting of this AmendmentandReinstatement, havehadthe opportunity to consultanattorneyin connection herewith, and that any construction of this Amendment and Reinstatementshall not be construed for or against any party, but rather shall be given a fair and reasonable interpretation, based on the plain language of this Amendment and Reinstatement and the express intent of the parties herein.
5. This Amendment and Reinstatementis intendedto modify the Agreementand shallbedeemedto amendanylanguagein theAgreementwhichiscontraryto theprovisions set forth herein. Any covenant or provision of the Agreement which is not inconsistent with this Amendment shall remain in full force and effect.
r
4,
Packet Pg. 75
Attachment: C-9146 - Amendment to Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater DocuSign Envelope ID: B5409811- 68A2- 4F2A- 802D- 543291D84F68
6. This Amendment and Reinstatement may be executed in any number of counterparts all of which taken together shall constitute one and the same instrument. An electronic signature ( such as DocuSign) or a PDF or electronically transmitted signature on this Amendment and Reinstatement shall be binding as an original.
Signature Page Follows]
Packet Pg. 76
Attachment: C-9146 - Amendment to Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater DocuSign Envelope ID: 65409811- 68A2- 4F2A- 802D- 54329ID84F68
SIGNATURE PAGE
IN WITNESS WHEREOF, the partieshaveexecutedthis Amendmentasof theday and year first above written.
THE CITY OF REDDING,
a California municipal corporation
By:
Kristen Sc,64r, Mayor
PURCHASER:
Crosland Barnes Group
Docuftrv" by:
By:
If .
2QA5, q[ jaA
Ned Barnes, Managing Partner
PALE&AMI E, city Cie
Packet Pg. 77
Attachment: C-9146 - Amendment to Purchase and Sale Agreement (4.1(a)--Second Amendment to PSA; Crosland Barnes Group; Stillwater
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions:
(1) Authorize submission of a grant application through the California Homeless Coordinating and Financing Council Encampment Resolution Funding Program (ERF-2- R), in an amount up to $10,000,000, to support the development and implementation of City of Redding programs addressing the ongoing shelter crisis; (2) Authorize the City Manager, or designee, to complete, sign , and submit the grant application with all applicable documents and subsequently accept and appropriate any ERF-2-R grant funds received;
(3) Determine that applying for grant funding is not considered a project under the California Environmental Quality Act; and
(4) Determine that applying for grant funding is exempt from review under the Na tional Environmental Policy Act under Title 24 CFR 58.34(a)(3).
Fiscal Impact
If the City of Redding (City) is successful in obtaining the grant funds, the City may receive up to $10,000,000 with no required match. There is no negative impact to the General Fund.
Alternative Action
The City Council could decline to authorize an application to the California Homeless Coordinating and Financing Council Encampment Resolution Fund (ERF-2-R). The City would need to seek other opportunities for grant funding to address the shelter crisis.
MEETING DATE: February 21, 2023
ITEM NO. 4.2(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.2(a)--Authorize Submission of Grant Application to California Homeless and Financing Council
Steve Bade, Assistant City
Manager
Packet Pg. 78
Report to Redding City Council February 16, 2023
Re: 4.2(a)--Authorize Submission of Grant Application to California Homeless and Financing Council Page 2
Background/Analysis
On June 15, 2021, the City Council declared a shelter crisis stemming from the impacts on individuals and families experiencing homelessness and as a result of the health, public safety, and environmental impacts associated with unlawful encampments situated in various locations in the City. Furthermore, the 2022 Point -in-Time Count reported that 423 veterans, women, individuals with disabilities, senior citizens, and other vulnerable groups were un sheltered within the County of Shasta.
The California Homeless Coordinating and Financing Council (HCFC) is a board of the California Business, Consumer Services, and Housing Agency which, among other responsibilities, is tasked with advancing collaborati ve efforts to prevent and end homelessness in the State of California. California HCFC formed in 2017 to oversee the implementation of Housing First policies, guidelines, and regulations to prevent and reduce the duration of homelessness in California. Hou sing First is an approach to homelessness that understands homelessness as a housing crisis and that achieving housing leads many to experience improvements in physical and mental health, wellness, substance abuse, and employment.
The ERF-2-R supports California HCFC’s mandates by funding local demonstration projects that provide services to address the immediate crisis of experiencing unsheltered homelessness in encampments, to support people living in encampments onto paths to safe and stable housing, and result in sustainable restoration of public spaces to its intended use while safeguarding the needs of unhoused people seeking shelter. The total funding available is $237,301,738 which will be divided among selected grantees through a competitive Reques t for Application process.
HCFC will evaluate project activities and outcomes and reviewing each for its ability to be scalable and replicable across the state.
The City faces a challenging environment due to limited housing inventory and limited funds to assist with the homeless crisis . The ERF -2-R opportunity is likely to be a very competitive program; however, a successful application would greatly benefit City initiatives and partnerships such as the Emergency Occupancy Program, Emergency Housing Shel ter (micro- shelter) program and the Crisis Intervention and Response Team partnership with Shasta County Health and Human Services Agency. Among other housing options and direct services, the City provides a pathway to permanent and stable housing for unsh eltered populations in the City, including community members in at -risk and disadvantaged categories. In addition to benefiting community members and addressing health, public safety, and environmental concerns related to encampments, a successful applicat ion that enhances the City’s programs could create a strong basis for securing other potential funding to supplement what is currently available.
Environmental Review
Applying for grant funding is not considered a project under the California Environmen tal Quality Act (CEQA). Any project that is developed will be reviewed for CEQA compliance once the details are known.
Under the National Environmental Policy Act (NEPA), administrative and management activities such as applying for grant funding are con sidered exempt activities and no further action is required. Any construction projects will be reviewed for NEPA requirements if funding is awarded.
Packet Pg. 79
Report to Redding City Council February 16, 2023
Re: 4.2(a)--Authorize Submission of Grant Application to California Homeless and Financing Council Page 3
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.” • Government of the 21 st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Packet Pg. 80
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Acknowledge the upcoming annual City of R edding Far Nor Cal Regional Science Bowl to be held Saturday, March 4, 2023, at Shasta College.
Fiscal Impact
The City of Redding Far Nor Cal Regional Science Bowl (Science Bowl) was included in the biennial budget; there is no added fiscal impact.
Alternative Action
The City Council may choose not to acknowledge the upcoming Science Bowl.
Background/Analysis
For 26 years, the City of Redding has hosted the Science Bowl, which consists of a highly challenging and technical question -and-answer comp etition. The Science Bowl participants include some of the brightest middle school and high school students in Northern California. The event is open to the public and will take place at Shasta College on March 4, 2023 , between 8:00 AM and 4 :00 PM. The cha mpionship rounds , featuring the top two middle school and high school teams, will be held in front of a live audience in the Shasta College cafeteria from 2:30 - 3:30 PM. The middle school and high school championship winners will each receive an all - expense-paid trip to Washington, D.C. to compete in the Department of Energy’s National Science Bowl competition occurring April 27 – May 1, 2023. We are expecting over 34 teams representing 21 middle schools and high schools from Butte, Glenn, Humboldt, Lassen, Shasta, Siskiyou, Tehama, and Trinity Counties.
MEETING DATE: February 21, 2023
ITEM NO. 4.5(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.5(a)--Regional Science Bowl
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 81
Report to Redding City Council February 15, 2023
Re: 4.5(a)--Regional Science Bowl Page 2
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
• This agenda item is a routine operational item.
Packet Pg. 82
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to the award of a grant from California State Parks Division of Boating and Waterways to fund City of Redding Recr eation Division’s Youth Boating and Water Safety Programs:
(1) Accept grant in the amount of $38,000;
(2) Adopt Resolution approving the 80th Amendment to City Budget Resolution No. 2021- 078 appropriating the funds; and
(3) Authorize the City Manager, or designee, to execute the grant agreement and all subsequent documentation relative to the grant.
Fiscal Impact
There is no impact to the General Fund.
Alternative Action
The City Council could choose not to accept the $3 8,000 grant from California State Parks Division of Boating and Waterways. Other funds would need to be identified to cover this expense or the City of Redding (City) would need to suspend the 202 3 youth water and boating safety programs.
Background/Analysis
The mission of the Division of Boating and Waterways is to provide safe and convenient public access to California's waterways and lead in promoting the public's right to safe, enjoyable and environmentally sound recreational boating. As part of its mission, the Division of Boating and Waterways manages the Aquatic Center Grant Program to enhance boaters’ knowledge of boating laws, practical handling of vessels on the water, weather and water conditions, best MEETING DATE: February 21, 2023
ITEM NO. 4.6(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.6(a)--Accept grant from California State Parks Division of Boating and Waterways and Adopt Resolution Approving and Adopting 80th Amendment to the City Budget Resolution
Kim Niemer, Community
Services Director
Packet Pg. 83
Report to Redding City Council February 14, 2023
Re: 4.6(a)--Grant - Boating and Waterways Page 2
practices, equipment requirements, and environmental stewardship. The grant provides fu nding to organizations that offer on -the-water training to the general public. Funding is also provided for the hosting of, and the purchasing of lifejackets to be given away during the Redding Aquatic Center’s National Safe Boating Week event which is scheduled for May 26, 2023.
Since 2005, the Redding Recreation Division (Redding Recreation) has received this annual grant funding from the Division of Boating and Waterways to provide Redding youth with scholarships for safe boating programs. Should the C ity Council accept the funds, the City will provide scholarships to youth during the summer of 2023 for safe boating courses hosted by Redding Recreation, including sailing, stand -up paddling, and kayaking. These courses are intended to teach boating skill s that will keep youth safe in, on, and around the water.
Approximately 600 youth will benefit from these scholarships.
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
• 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
^Resolution
Cal-Boating Grant Agreement
Packet Pg. 84
RESOLUTION NO. 2023-___
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 80TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2021-078 APPROPRIATING $38,000
FOR A GRANT FROM CALIFORNIA DEPARTMENT OF PARKS AND RECREATION,
DIVISION OF BOATING AND WATE RWAYS FOR REDDING RECREATION YOUTH BOATING AND WATER SAFETY PROGRAMS FOR FISCAL YEAR 2022-23
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2021-078 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
128 616 Parks-Grants $38,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Increase Revenue
128-616-6-1200-13 State Grant Operating-Rec & Culture 38,000$ Increase(Decrease) Expenditures
128-616-4796-69 Cal Boating & Waterways #33233FO 38,000$ Total 38,000$ 38,000$
THAT the purpose is to appropriate $38,000 grant from California Department of Parks and Recreation, Division of Boating and Waterways for Redding Recreation Youth Boating and Water Safety Programs for fiscal year 2022-23.
I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 21st day of February, 2023, and was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MICHAEL DACQUISTO, Mayor
ATTEST: FORM APPROVAL:
PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
Packet Pg. 85
Attachment: ^Resolution (4.6(a)--Grant - Boating and Waterways) Packet Pg. 86
Attachment: Cal-Boating Grant Agreement (4.6(a)--Grant - Boating and Waterways) Packet Pg. 87
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Attachment: Cal-Boating Grant Agreement (4.6(a)--Grant - Boating and Waterways) Packet Pg. 156
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Attachment: Cal-Boating Grant Agreement (4.6(a)--Grant - Boating and Waterways)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve the City of Redding as an applicant for $10 million from the California Department of Food and Agriculture Community Resilience Centers Program grant for the Panorama Park and Community Center (Project) ; and authorize the Ci ty Manager, or designee, to execute all documents necessary to apply for the grant.
Fiscal Impact
The grant application will request up to the program’s maximum of $10 million to construct Panorama Park and a community center . The grant does not require a match. However, the City of Redding (City) has already secured $8.5 million from the Statewide Park Program and will contribute $1.5 million from the Park Development Fund. The grant funds would supplement the existing project budget. The emergency serv ices functions will rely on existing programs and operations by the City and its partners during Community Resiliency Center (CRC) events. With award of the grant, the e xpansion of the project and associated services are not intended to place an additional impact on the General Fund.
Alternative Action
The City Council (Council) could decline to apply for the funds under this grant opportunity or provide staff with alternative direction.
Background/Analysis
The Panorama Park Project features a 10.5 -acre community park with a 20,000 -square-foot community center. The project includes park amenities such as trails, landscaping, a playground, a dog park, parking, and more. With the existing Statewide Park Program (SPP) grant and the City’s Park Development F und allocation, the project has a $10 million budget. Due to the SPP grant award ceiling ($8.5 million) and inflationary factors since the applicati on submittal in MEETING DATE: February 21, 2023
ITEM NO. 4.6(b)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.6(b)--Authorize Grant Application for Community Resilience Centers Program for Panorama Park
Kim Niemer, Community
Services Director
Packet Pg. 160
Report to Redding City Council February 15, 2023
Re: 4.6(b)--Authorize Grant Application for Community Resilience Centers Program Page 2
2020, the current construction budget is inadequate. To address the construction cost defici ency, the Community Services Department identified a strategy to seek opportunities for additional funding by expanding the role of the community center . In this strategy, the community center would serve a dual purpose as a CRC, allowing it to function du ring natural disasters, extreme heat events, and other emergency or climate-related instances.
Staff is seeking to leverage existing project funding in the California Department of Food and Agriculture (CDFA) Community Resilience Centers Program and elevate the design of the community center by adding additional elements and capacity for both sustainability and emergency operations. Elements of CRC infrastructure may include a heating and cooling area, solar and backup power, clean air area, and extended e mergency evacuation response centers with community kitchen, shower facilities, broadband, and other community needs due to wildfires, floods, and other emergencies or climate events. As seen in the Carr Fire, emergency events can be dynamic, widespread an d require multiple options and plans for emergency centers. A successful CRC grant application will allow for the constructing a purpose -built facility in the City’s northwest quadrant, thereby increasing the geographic distribution and availability of emergency shelter infrastructure.
For this grant program, t he CDFA Fairs and Expositions Branch was issued a one-time General Fund allocation of $150 million for fairground and community resilience centers. Of that allocation, $38 million will be awarded to community centers throughout the state. The City’s application will request up to $10 million to supplement the project’s current budget , for a total project budget of $20 million . The application is due February 27 . If awarded, staff will need to amend the current design contract with NJA Architects to expand the project’s scope and design the additional square footage in the building.
Environmental Review
On June 22, 2021, the Planning Commission (Commission) adopted the Mitigated Negative Declaration (MND) and the Mitigation Monitoring Programs (MMP) and approved the Panorama Park Project, thereby satisfying the requirements of the California Environmental Quality Act Guidelines §15074 (CEQA). At this meeting, the Commission also approved Site Development Permit SDP -2021-00785, General Plan Amendment GPA -2021-0786, and Rezoning Application RZ-2021-0787. No further actions are required at this time.
Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the o pportunities 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. 161
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve the Letter of Agreement with Big League Dreams USA , LLC, regarding payment of past due lease obligations and its Capital Improvement Plan.
Fiscal Impact
Payment of past -due lease paym ents will ensure Big League Dreams USA (BLD) is compliant with its contract with the City of Redding (City). In addition, the $182,818 in revenue payments to the General Fund will allow the City to adjust back to what was originally budgeted as a result of the contract . Having a reliable tenant in the Big League Dreams Sports Park (Park) will provide an ongoing positive impact to the General Fund as quarterly lease payments resume.
Alternative Action
The City Council (City) may decline to approve the atta ched Letter of Agreement and provide staff with alternate directions.
Background/Analysis
In 2001, the City and BLD executed a lease agreement for a sports complex to be branded as a Big League Dreams Sports Park. The Soccer Park was constructed in 2006 under a separate lease agreement with the Shasta Regional Soccer Association. The Sports Park opened in 2004, which started the thirty-five (35) year lease term. BLD was required to pay quarterly lease payments equivalent to six percent (6%) of gross recei pts after three years in operation . BLD paid over $950,000 in lease payments through May 2019. Around the time the 2019 2 nd Quarter Payment was due, a BLD representative called and requested an extension for the payment as t he corporation was having difficulties with internal staffing. The extension was granted verbally.
MEETING DATE: February 21, 2023
ITEM NO. 4.6(c)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA regarding overdue lease payments and capital improvement plan Kim Niemer, Community
Services Director
Packet Pg. 162
Report to Redding City Council February 15, 2023
Re: 4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA Page 2
In December 2019, the City was contacted again by The CrisCom Company, representing BLD, seeking discussion regarding the past due amounts. Again, an extension was requested due to the passing of a major partner, the vacancy of the CEO, and other minor issues. The extension request was granted until after January 1, 2020. BLD indicated every intent to pay in full.
In February 2020, concerns about the Coronavirus began in earnest, and on March 19, 2020, the City Council declared a State of Emergency. On March 17, 2022, BLD contacted former City Finance Director Allyn Clark and informed her that it would be closing the park due to the pandemic. During that phone call, BLD explained that the major contributing partner had passed away, and that was continuing to cause a problem with reporting and payment. Director Clark insisted the necessary reports be filed.
At the time of the call, BLD also indicated that a new partner had been identified . The Park remained closed for the next four quarters or approximately one year. During that time, the City Council approved several suspensions of lease payments (Soccer Park, Airport tenants, and Civic Auditorium). Therefore, staff did not see the need t o treat BLD differently and did not continue to press for the reporting and payments.
In May 2020, BLD contacted the City and informed staff that it had a potential new partner for BLD. In June 2020, staff met with the prospective new owner, who sought in put from City officials as his company continued to work through its due diligence. In early January 2021, a purchase agreement was executed with the new ownership. The City Council was formally notified of this via email on January 29, 2021. Of note is th at the original entity, Big League Dreams USA, remains the legal entity that holds the lease from the City – only its ownership changed. Therefore there was no opportunity to negotiate any new terms. Due to outstanding issues with a federal Paycheck Protection Program loan, the sale did not close until August 2022.
Throughout this process, the previous and current owners of BLD have acknowledged the past amount owed to the City and the deferred maintenance responsibility. Over the last three months, staff has been in regular conversations with CEO, Larry Reynolds, and COO, Kevin Flora. They have also made several site visits.
In January 2023, CEO Reynolds sent an email indicating BLD would initiate repayment of all past due payments in February 2023 at $18,000 per month, with full payment by the end of 2023.
Additionally, he provided a schedule of capital improvements to be completed at the park over the next few months.
February 2023 – Repair batting cages, implement a new point-of-sale ( POS) system, paint the building exteriors, paint outfield replica walls, repair parking lot lighting, and paint interior Stadium Club.
March 2023 - Fix all broken stadium seats, repair grading on Pawtucket field, upgrade restrooms, install new flooring in Stadium Club, replace infield turf, install turf in batter's boxes.
April 2023 – Repair shade structures on replica fields, replace sand in the volleyball courts.
The terms of both the repayment plan and the capital improvement schedule have been incorporated into the attached Letter of Agreement.
Packet Pg. 163
Report to Redding City Council February 15, 2023
Re: 4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA Page 3
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.”
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• 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
^Letter of Agreement for Repayment and Projects
2001 BLD Sports Park Lease (C-0458)
Packet Pg. 164
Packet Pg. 165
Attachment: ^Letter of Agreement for Repayment and Projects (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Packet Pg. 166
Attachment: ^Letter of Agreement for Repayment and Projects (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Packet Pg. 167
Attachment: ^Letter of Agreement for Repayment and Projects (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Packet Pg. 168
Attachment: ^Letter of Agreement for Repayment and Projects (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA)
SPORTS PARK LEASE
between
CITY OF REDDING
and
BIG LEAGUE DREAMS REDDING, LLC
Packet Pg. 169
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) "rzh- THIS SPORTS PARK LEASE (this "Agreement") is entered into this 2 L\ day of May, 200 1, by and between the CITY OF REDDING, a Municipal Corporation referred to in this Agreement as "Landlord", and BIG LEAGLE DREAMS REDDING, LLC, referred to in this Agreement as "Tenant".
RECITALS
A. Landlord desires to develop and own a multi-purpose sports facility (the "Sports Park") on certain real property (the "Land") owned by or to be acquired by the City. A plot plan of the Land is attached as Exhibit 1, and is incorporated herein by this reference.
B. Landlord intends to construct the Sports Park in general conformance with the Project Description attached as Exhibit 2, and within the Project Budget attached as Exhibit 3, both of which exhibits are incorporated herein by this reference.
C. Landlord desires to lease the completed Sports Park to Tenant and Tenant desires to lease the completed Sports Park from Landlord for the purpose of operating the Sports Park in accordance with the terms of this Agreement. The Land and the Sports Park Improvements to be hereafter constructed thereon are sometimes collectively referred to as the "Premises". The lease of the Premises by Tenant from Landlord shall be in accordance with the terms and conditions set forth in this Agreement.
NOW THEREFORE, the parties agree as follows:
AGREEMENT
1. Definitions. The following terms used in this Agreement shall have the meanings given unless expressly provided to the contrary:
Affiliate means Richard Odekirk, Jeff Odekirk, or any entity other than BLD USA in which Messrs. Odekirk and Odekirk, individually or collectively, or Tenant, owns at least a fifty percent (50%) capital or voting interest of the common stock, partnership units or limited liability company interests, as applicable.
Agreement means this Sports Park Lease.
Annual Revenues Statement is defined in Section 4(c)(ii).
Award, Condemnation, Condemner and Date of Taking, are defined in Section 15.
BLD USA Allocations are defined in Section 4(b)(iii).
BLD Sponsorships are defined in Section 4(b)(iii).
Packet Pg. 170
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
BLD USA means Big League Dreams USA, LLC, a California limited liability company.
& means the City of Redding, an incorporated municipality within the County of Shasta, State of California.
City Days are defined in Section 29(a).
City Manager means the City Manager of the Landlord.
City Use Permit shall mean the use permit with respect to the Sports Park to be approved by the City.
Controlling Percentage means the ownership of, or the right to vote, fifty-one percent (51%) or more of the total combined voting shares, units or membership interests of a corporation, partnership or limited liability company, as applicable.
Environmental Impact Report Mitination Measures shall mean the mitigation measures associated with the environmental impact report (a) approved at a meeting of the City Council of the City on March 20,2001, (b) as to which a notice of determination was filed by the City on March 26,2001, and (c) determined by the City Council of the City to be applicable to the Sports Park and the Project on April 3,2001, which are referenced on the attached Exhibit 4.
FF&E shall mean all furniture, furnishings, trade fixtures, apparatus and equipment required for operation of the Sports Park. A list of the anticipated FF&E is attached as Exhibit 5 and incorporated herein by this reference. Tenant shall have the right to review and make additions and revisions to the FF&E list set forth in Exhibit 5 with the approval of the Landlord, which approval shall not be unreasonably withheld. The type, quality and craftsmanship ofthe FF&E shall be no greater or no less than that of the furniture, fixtures and equipment to be installed or constructed at the Big League Dreams Sports Park in Chino Hills, California. The FF&E will be owned and paid for by Landlord and be leased to Tenant as part of this Agreement.
Gross Revenues are defined in Section 4(b)(i).
Hazardous Materials are defined in Section 30(a).
Indemnitees is defined in Section 14(f).
Land is that certain real property described in Exhibit 1. - Packet Pg. 171
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
Landlord means the City of Redding, a municipal corporation, and its permitted successors and assigns.
Lease Year means the period from January 1 of each calendar year to December 3 1 of such calendar year (both dates inclusive) during the Term hereof; except that if the Term Commencement Date does not fall on a January 1, the first Lease Year shall be that period from the Term Commencement Date to the next following December 3 1, and that if the Term does not end on a December 3 1, then the last Lease Year shall be the period commencing with the last preceding January 1 and ending at the end of the Term hereof. The first Lease Year shall be considered a partial Lease Year for all purposes of this Agreement unless the Term Commencement Date is on or before March 15 of the Lease Year during which the Term Commencement Date occurs.
Legal Challenge shall mean any action or other legal proceeding (including,. without limitation, any California Environmental Quality Act (CEQA) challenge) brought by any third party seeking to block construction of the Sports Park Improvements or to contest the validity of this Agreement or of any Related Agreement.
Marketing Plan shall mean the Big League Dreams Redding Marketing Plan attached as Exhibit 6.
Memorandum of Lease means that certain Memorandum of Lease executed concurrently herewith and to be recorded pursuant to Section 3 1 (q).
Partv means either party to this Agreement. The "Parties" shall be all parties to this Agreement.
Percentage Rent is defined in Section 4(a)(ii).
Plans and Specifications means all concept drawings, preliminary drawings, landscaping and grading plans, site plans, engineering drawings, reports, final construction drawings, and any other plans or specifications consistent with the Project Description and required for construction of the Project as prepared by Landlord at its sole expense and those provided pursuant to the Planning, Design and Construction Consulting Services Agreement between the City and BLD USA to be entered concurrently with this Agreement.
Premises means the Land, the Sports Park Improvements and all easements or rights of way necessary or desirable for access to the Land and the Sports Park Improvements.
Proiect means the development of the Sports Park on the Premises in accordance with the Project Description, the Plans and Specifications, and this Agreement.
Packet Pg. 172
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
Pro-iect Description means a preliminary description of the Sports Park containing conceptual artist renderings, a site plan and a list of the buildings, fields, spaces, structures, elements and features to be included in the Sports Park as described in the attached Exhibit 2.
Punch List is defined in Section 9(b).
Quarterly Revenues Statement is defined in Section 4(c)(i).
Related Agreements shall mean the Planning, Design and Construction Consulting Services Agreement between BLD USA and the City, and the License Agreement between BLD USA and the City, both of which shall be executed approximately concurrently with the execution of this Agreement.
Sports Park means the Sports Park facility to be designed and constructed by the Landlord on the Land as generally depicted in the Project Description attached hereto as Exhibit Sports Park Improvements means all buildings, fields, structures, advertising displays, landscaping, infrastructure, utilities, FF&E (as herein defined), and other improvements constructed or installed or to be constructed or installed on the Land by Landlord and leased by Tenant pursuant to this Agreement.
Statutes are defined in Section 8(a).
Taxes are defined in Section 6(b).
Tenant means Big League Dreams Redding , LLC, a California limited liability company, its permitted successors and assigns. The members of Tenant are BLD USA, Richard Odekirk and Jeffrey Odekirk.
Term is defined in Section 3(a).
Term Commencement Date means for purposes of the leasing ofthe Premises pursuant to this Agreement, the earliest date upon which (a) Tenant shall have accepted in writing the Sports Park Improvements, or (b) the City shall have issued a Certificate of Occupancy, or (c) possession of the Premises shall have been delivered to Tenant and (d) all permits and licenses required to sell beer, wine and liquor shall have been obtained by Tenant.
2. Lease of Premises. Effective as of the Term Commencement Date, Landlord leases the Premises to Tenant, and Tenant leases the Premises from Landlord, for the Term set forth in Packet Pg. 173
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
Section 3, subject to and on the terms and conditions set forth in this Agreement. The lease of the Premises shall not be effective until the Term Commencement Date.
3. Term.
a. Term. The lease term of this Agreement (the "Term") shall commence on the Term Commencement Date and shall end on the last day of the calendar month that is thirty-five (35) years after the Term Commencement Date, unless sooner terminated by Landlord as otherwise provided for herein. Upon Landlord's request, Tenant will co-sign Landlord's written confirmation of lease commencement and termination dates.
b. Minimum Percentage Rent. Landlord, in its sole discretion, shall have the right to terminate this Agreement and all further rights and obligations of the parties hereunder by giving written notice of such termination (which shall specify a date not less than ninety (90) days thereafter on which such termination shall become effective) to Tenant at any time during the first ninety (90) days of the tenth (1 0th) Lease Year of this Agreement if, but only if, during the seventh (7th), eighth (8th) and ninth (9th) Lease Years of this Agreement, Tenant has paid to Landlord Percentage Rent as provided in Section 4 below averaging less than $75,000.00 per year for such three (3) year period. With respect to the ninth Lease Year, Tenant may, at its option, pay Landlord additional Percentage Rent beyond what is required in Section 4 to meet the Percentage Rent average payment requirement set forth in the previous sentence and thereby avoid termination of this Agreement by Landlord.
4. Rent. Tenant shall pay to Landlord Percentage Rent, without deduction, set-off, prior notice, or demand, as follows:
a. Percentage Rent.
1. First Partial and First Three Full Lease Years. In the first partial Lease Year (if applicable) and in each of the first three full Lease Years, Tenant shall pay no Percentage Rent (defined below) unless Gross Revenues in any Lease Year shall have exceeded $2,600,000. If Gross Revenues for the first partial or any of the first three full Lease Years exceeds $2,600,000, Tenant shall pay to Landlord as Percentage Rent six percent (6%) of all Gross Revenues earned by Tenant, at the times and in the manner set forth in Section 4(a)(ii) below, for the quarter in which the $2,600,000 annual Gross Revenues threshold is crossed, quarterly for each quarter of the next Lease Year and quarterly for each quarter of each Lease Year thereafter except as otherwise provided in this Section 4. Tenant shall not be obligated to pay any Percentage Rent for the quarters of the Lease Year prior to the quarter during which the $2,600,000 annual Gross Revenues threshold is crossed. As an illustration, assume the final accounting for the fourth quarter of the second full Lease Year shows Gross Revenues exceeded $2,600,000 for the second full Lease Year. As provided above, Tenant would not have been obligated to make any Percentage Rent payments for the first three quarters of that second full Lease Year, and would not be required hereby to do so Packet Pg. 174
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
retroactively. Once the threshold is crossed, Tenant would be required to pay Percentage Rent on a six percent (6%) basis as to Gross Revenues earned during the fourth quarter of the second full Lease Year (payment due by February 14 of the third full Lease Year) and for each quarter of each Lease Year thereafter.
. .
11 Fourth and Subsequent Full Lease Year Pavments. Except as otherwise provided in subsections (i) or (iii), commencing with the first quarter of the fourth (4") full Lease Year and continuing for every subsequent Lease Year, Tenant shall pay to Landlord, at the times and in the manner specified in this Agreement, Percentage Rent for each Lease Year ("Percentage Rent"). Percentage Rent shall be calculated by multiplying Tenant's Gross Revenues from the Premises for the applicable period by six percent (6%). The Percentage Rent shall be paid quarterly, in arrears, within forty-five (45) days following the end of each calendar quarter during the applicable Lease Year.
iii. Fourth and Subsequent Full Lease Year Continnent Pavments. If, as to the fourth full Lease Year or any Lease Year thereafter, Gross Revenues exceed $3,250,000, then Tenant shall pay to Landlord as Percentage Rent eight percent (8%) of all Gross Revenues (rather than six percent (6%)) earned by Tenant, at the times and in the manner set forth in Section 4(a)(ii), for the Lease Year in which such $3,250,000 Gross Revenues threshold was crossed, for the next Lease Year and for each Lease Year thereafter. As an illustration, assume the final accounting for the fourth quarter of the seventh full Lease Year shows Gross Revenues exceeded $3,250,000 for that seventh full Lease Year. As provided above, Tenant would already have been obligated to make Percentage Rent payments for the first three quarters of the seventh full Lease Year at the six percent (6%) rate. Once the threshold is crossed, Tenant would be required to pay Percentage Rent on an eight percent (8%) basis as to Gross Revenues earned during the fourth quarter of the seventh full Lease Year (payment due by February 14 of the third full Lease Year). In addition, Tenant shall also be required to pay, by the same February 14 payment date on a retroactive basis, additional Percentage Rent in the amount of two percent (2%), equal to the difference between eight percent (8%) and six percent (6%), multiplied by the Gross Revenues earned during the first three quarters of the seventh full Lease Year.
b. Gross Revenues.
I. Definition. "Gross Revenues" are defined as all revenues received by Tenant, or any Affiliate of Tenant relating to or derived from the Premises and the Project, determined on an accrual basis, including the BLD USA Allocations to Tenant (but excluding BLD USA gross revenues not allocated to Tenant as BLD USA Allocations) as set forth in Section 4(b)(iii), minus the exceptions and authorized deductions described in Section 4(b)(ii). Gross Revenues include, without limitation, all cash and credit revenue of Tenant; finance charges to customers, in case of sales on credit, whether or not payment is actually made, at, in, on, or from the Premises; revenues from the sale of gift certificates, when such revenues are received; gross revenues received by Tenant from food, liquor and beverage sales; facility rental or usage charges; admission Packet Pg. 175
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
charges; vending machine sales; all service fees or other consideration paid to Tenant as compensation for Tenant's sale or distribution of lottery tickets, hunting and fishing licenses, or in connection with any other local, state, or federal lottery or licensing program similar to the foregoing; all charges for services, alterations or repairs made at, in, on, or from the Premises; the gross amount received by Tenant for merchandise sold pursuant to orders received in or from the Premises, whether such order is filled at the Premises or elsewhere; revenues from advertising, signs, and promotions; other cash consideration paid by advertisers; proceeds of business interruption insurance received by Tenant; fees and rebates paid by vendors to Tenant in consideration for the right to sell such vendors' food, beverage or merchandise from the Premises; lease rent payments or other compensation from any sublessee or subtenant of all or part of Tenant's interest in this Agreement or the Premises, unless the revenues derived by such sublessee's or subtenant's operations from the Premises have already been included in the calculation of Tenant's Gross Revenues; any compensation paid to Tenant by an assignee of all or part of Tenant's interest in this Agreement or the Premises, unless Tenant is not relieved of its obligations under this Agreement by such assignment or the assignment is to an entity in which Tenant or its members have retained a Controlling Percentage; and the gross amount received by Tenant from Tenant's subtenants, licensees and concessionaires from all sources of income derived from the businesses conducted on the Premises, unless such sources of income have already been included in the calculation of Tenant's Gross Revenues.
. .
11. Exceptions andDeductions fiom Gross Revenues. All ofthe following shall be excepted from Tenant's Gross Revenues: (A) the amount of all sales tax receipts required to be accounted for by Tenant and paid to any government or governmental agency, but not the amount of any excise tax (except a consumer excise tax) or other governmental obligation in the nature of a tax on the privilege of doing business; (B) the amount of any actual refunds or credits made by Tenant with respect to goods, services or fees, provided the goods, services or fees were previously included by Tenant in Tenant's Gross Revenues; (C) the amount of any revenues received by any licensee or concessionaire (unless such licensee or concessionaire is an Affiliate) operating in or from the Premises which are not paid or required to be paid to Tenant, provided that such revenues are not derived fiom the sale of food, beverages or liquor; or from the collection of league or player fees or field rentals; or from the collection of gate admissions; or from batting cage revenues; (D) the amount of any revenues received by non-Affiliate special or corporate events promoters, impresarios, outside catering companies, camp/ clinic operators, tournament organizers or similar third party independent contractors (including revenues derived from the sale of food, beverages or liquor) involved in the sponsorship, placement, promotion or conduct of special events, corporate events, camps/clinics or tournaments at the Sports Park, which revenues are not paid or required to be paid to the Tenant; (E) the amount of sponsorship or advertising or group business revenues generated from the Project which are received by Tenant from sponsors or advertisers or group business customers but are paid to non-Affiliate advertising agencies, hotel concierge desks, destination management companies, brokers or other referral sources as commissions; (F) gratuities paid or given by customers to food service employees of the Sports Park; (G) proceeds of insurance other than business interruption insurance; (H) loan proceeds; (I) credits or refunds received from Packet Pg. 176
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
vendors or other third parties as a result of damage claims made by Tenant with respect to defective goods or services previously purchased; (J) checks or other instruments returned for insufficient funds; and (K) late charges or interest assessed and received on delinquent accounts receivables. iii. BLD USA Allocations. BLD USA owns and organizes tournaments played and camps/clinics held at the various Big League Dreams Sports Parks; contracts with hotels to receive commissions on room nights reserved by participants in tournaments held at the various Big League Dreams Sport Parks; and sells sponsorships to entities interested in having a commercial identification with the various Big League Dreams Sports Parks, and shall have the right to do all of the foregoing with respect to the Sports Park. Except as otherwise provided in the remainder of this subpart (iii) with respect to revenues paid by BLD USA to Tenant (the "BLD USA Allocations"), revenues derived by BLD USA shall not be considered Gross Revenues. All other forms of Gross Revenues (including, specifically, revenues from all league and player registrations with respect to all sports played at the Sports Park; batting cages; food and beverage; group business; special events; gate admissions; merchandising; arcade; and park tournaments) related to the Sports Park are created solely by Tenant and all, subject to Section 4(b)(ii), shall be included in Gross Revenues. As to BLD USA tournaments and camps/clinics, BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenues, a field rental charge not less than the maximum field rental charge made by Tenant to any third party tournament organizer or camps/clinic operator during the applicable Lease Year. BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenues, fifty percent (50%) of all hotel commissions received by BLD USA for room nights reserved by participants in tournaments held at the Sports Park. "BLD S~onsorships" shall mean any agreement entered by BLD USA with any entity by which such entity is given the right to identify commercially with Big League Dreams Sports Parks as a sponsor, preferred company or other designation of similar import and where such commercial identification rights extend to more than one Big League Dreams Sports Park. BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenues, fifty percent (50%) of the cash revenues received from such a BLD Sponsorship divided by the number of Big League Dreams Sports Parks to which the BLD Sponsorship applies.
As to any advertising or sponsorship sales made by BLD USA or Tenant which do not constitute BLD Sponsorships, BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenue, eighty percent (80%) of the cash revenues received from such a non-BLD Sponsorship. In the event, however, (A) any entity controlled by BLD USA enters a lease agreement for the construction and operation of a new Big League Dreams Sports Park, and (B) such lease shall contain BLD USA Gross Revenue allocation provisions which, taken as a whole, are more favorable to the new lessor than the BLD USA Gross Revenue allocation provisions set forth above, taken as a whole, are to Landlord, then this Agreement shall @so facto be deemed amended to make such more favorable provisions, taken as a whole, applicable to Landlord under this Agreement from that time forward. iv. Sales Recordinn and Records Tenant shall record at the time of sale, in the presence of the customer, receipts from sales or other transactions, whether cash or credit, in a cash register or registers, or a point of sale terminal or terminals, having a tape that accumulates Packet Pg. 177
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
and consecutively numbers all transactions. A receipt from any transaction showing the correct amount of purchase shall be offered to the customer at the time of any transaction, including any cash sale. Transactions not ordinarily recorded in a cash register or point of sale terminal shall be noted on and kept in a ledger format. Tenant shall keep, and all sublessees, concessionaires, franchisees, contractors, and licensees of Tenant shall keep, or, with five (5) days' advance written notice, make available, at the Premises:
(1) full and accurate books of account and records in accordance with generally accepted accounting principles consistently applied, including, without limitation, a sales journal, general ledger, and all bank account statements showing deposits of revenues; (2) all cash register or point of sale terminal receipts with regard to the Gross Revenues, credits, refunds, and other pertinent transactions made fiom or on the Premises (including the revenues of any sublessee, franchisee, contractor, licensee, or concessionaire); and
(3) detailed original records of any exclusions or deductions from Gross Revenues (including any exclusions or deductions fiom Gross Revenues of any sublessee, franchisee, contractor, licensee, or concessionaire). These books, receipts, and records shall be kept at the Premises, or at the headquarters of BLD USA, for a period of five (5) years after the end of each Lease Year, and shall be made available for inspection and audit by Landlord and Landlord's representatives at the Premises on five (5) days' advance written notice. In addition, on request of Landlord or Landlord's representatives, Tenant agrees to furnish copies of Tenant's state and local sales and use tax returns.
c. Quarterly and Annual Revenues Statements.
1. Quarterly Revenues Statement. Each payment of Percentage Rent shall be accompanied by a statement, to be certified as correct by Tenant or the employee of Tenant authorized so to certify, that sets forth Tenant's Gross Revenues (and any authorized exclusions and deductions thereto) for the quarter just concluded ("Quarterlv Revenues Statement"). Quarters shall be calendar year quarters, ending on March 3 1, June 30, September 30, and December 3 1, respectively.
. .
11. Annual Revenues Statement. Within sixty (60) days following the end of each Lease Year, including the last Lease Year of the Term, Tenant shall furnish Landlord with a statement of Tenant's annual Gross Revenues on account of the previous Lease Year, or any partial Lease Year, including any authorized deductions ("Annual Revenues Statement"). Such Annual Revenues Statement shall be certified as correct by an authorized oficer of Tenant. iii. Content. Each Quarterly Revenues Statement and Annual Revenues Statement shall set forth the total Gross Revenues for the preceding quarter or Lease Year, as Packet Pg. 178
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
applicable, and shall show the method of computing the Percentage Rent due for such quarter or Lease Year, as applicable.
d. Audit Rights.
1. Audit Procedures. The acceptance by Landlord of any monies paid to Landlord by Tenant as Percentage Rent for the Premises as shown by any Annual or Quarterly Revenues Statement furnished by Tenant shall not be an acceptance by Landlord of the accuracy of the statement, or of the sufficiency of the amount of Percentage Rent payments, but Landlord shall be entitled at anytime and from time to time during the Term, until the date that is five (5) years after the end of the Lease Year for which any of the Percentage Rent payments have been paid, to question the sufficiency of the amount paid and the accuracy of any and all statements furnished by Tenant to justify the amount Tenant shall pay as Percentage Rent, and to confirm and evaluate Tenant's statement of its Gross Revenues from the Premises. At any time during the Term and within five (5) years after the end of the Term, Landlord may cause an audit of Tenant's books and records (and the books and records of BLD USA related to a calculation of Gross Revenues subject to the BLD USA Allocations, which Tenant shall cause to be made available to Landlord) an independent accountant of Landlord's own selection for any Lease Year. If any Annual Revenues Statement for such Lease Year delivered by Tenant to Landlord is found to be less than the amount of Tenant's actual Gross Revenues for the period covered by the statement, Tenant shall immediately pay to Landlord any additional Percentage Rent shown to be payable by Tenant. If the audit reveals that the correct amount of Gross Revenues is more than five percent (5%) greater than the amount shown on the Annual Revenues Statement previously delivered by Tenant for the period covered by such statement, Tenant shall immediately pay to Landlord the cost of the audit and any additional Percentage Rent shown to be payable by Tenant, together with interest on the amount of the underpayment of Percentage Rent from the original due date at the default rate specified in Section 18c, plus additional rent equal to five percent (5%) of the Percentage Rent payable for such Lease Year; otherwise, the cost of this audit shall be paid by Landlord. If, ten (10) days after written request therefor specifying Tenant's failure to comply with the reporting obligations hereunder, Tenant fails to provide to Landlord any Quarterly Revenues Statement or Annual Revenues Statement in the manner specified in this Agreement, this failure shall constitute a default under this Agreement. In such an event, Landlord shall have the right, in addition to any other rights or remedies it may have under this Agreement, to conduct an audit to determine these revenues. Tenant shall immediately reimburse Landlord for the cost of such audit on written demand by Landlord. If any such Quarterly Revenues Statement or Annual Revenues Statement reports Gross Revenues found to be more than ten percent (1 0%) less than the amount of actual Tenant's Gross Revenues shown by this audit, the understatement shall be deemed willful and Landlord may terminate this Agreement upon written notice given at any time within one hundred eighty (1 80) days after receipt of the audit by Landlord. If at any time Tenant causes an audit of Tenant's business at the Premises to be made by an independent accountant, Tenant shall furnish Landlord with a copy of the report of this audit at no cost to Landlord, within ten (10) days after Tenant's receipt of the audit report. . .
11. Examination ofBooks. Tenant shall (and shall cause BLD USA to do so as well as to those books, records and accounts by which Gross Revenues subject to the BLD 10 ReddingLease4-30.wpd
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
USA Allocations are calculated), for a period of five (5) years following the delivery of each Annual Revenues Statement, including the five (5) year period following the end of the Term, keep and maintain, safe and intact, all of the records, books, and accounts required under Section 4(b)(iv), and shall from time to time, upon request, make these records available to Landlord, Landlord's auditor, representative, or agent for examination at any reasonable time during this period. Landlord shall also have the right to make abstracts fiom the records, to make copies of any or all of the records, to examine any or all contracts, leases, licenses, and concession agreements, and to make copies of any or all contracts, leases, licenses or concession agreements. e. Operation. Tenant shall operate Tenant's business from the Premises as provided in Section 7 with due diligence and efficiency. Tenant will operate the business at Tenant's own expense and at hours consistent with other similar businesses operated by Tenant, which do not conflict with the Environmental Impact Report Mitigation Measures and City Use Permit; provided, however, that this provision shall not apply if the Premises are closed due to inclement weather or Tenant's business is temporarily shut down due to casualty, condemnation, fire, or other causes beyond the reasonable control of Tenant. Nothing in this Agreement shall be deemed to restrict or limit the ability of Tenant or BLD USA to sell "naming rights" to the Sports Park pursuant to a BLD Sponsorship subject to Landlord consent, provided that revenues derived therefrom, including BLD USA Allocations to Tenant (but excluding BLD USA gross revenues not allocated to Tenant as BLD USA Allocations), are included in Gross Revenues. Tenant shall at all times carry a commercially reasonable stock of merchandise, food and beverages, offered for sale at competitive prices, and shall maintain an adequate number of properly trained and skilled personnel for the efficient service of Tenant's customers, Sports Park participants, and the operation of the Sports Park. Although Landlord has no ownership interest in Tenant's business, Landlord is concerned about maximizing Gross Revenues (and, consequently, the Percentage Rent), and Tenant hereby acknowledges that fact.
f. Assignees. Wherever Tenant's business or operations, or Tenant's Gross Revenues, or Tenant's records, books, accounts, and other dataare referred to in this Agreement, they shall be deemed to include, but only to the extent necessary to calculate or verify Gross Revenues, those of any assignee, sublessee, concessionaire, licensee, vending machine operator, or other person, firm, or corporation selling merchandise or services on or from the Premises; provided that this subsection shall not be deemed to imply consent to the operations of any other person, firm, or corporation except in accordance with the provisions of Section 16. g. Percentage Rent Due in Event of Default. If this Agreement is terminated by Landlord because of Tenant's default, and if Tenant becomes liable for any deficiency in rent by way of damages or otherwise, or if at any time during the Term, Tenant, in violation of Section 7, ceases to conduct in the Premises the business referred to in Section 7, then from and after the time of the breach causing this termination, or from and after the time of the cessation of business, the Percentage Rent shall be deemed to be ten percent (10%) of that amount which is equal to the average of the Gross Revenues during the twenty-four (24) months preceding the termination or Packet Pg. 180
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
cessation of business, unless the Termination or cessation occurs within three (3) years of the beginning of the Term, in which event the Percentage Rent shall be $200,000 per year. h. Leaal Currency. All rent payable under this Agreement shall be made in legal currency of the United States. If any two or more payments made by a check, draft, or money order are returned to Landlord due to insufficient hds or otherwise, Landlord shall have the right, at any time after the return, upon written notice to Tenant, to require Tenant to make all subsequent payments in cash, or by cashier's or certified check for aperiod of three (3) Lease Years. Tenant shall pay all rental amounts due under this Agreement at Landlord's address as set forth below, or at such other address as may be designated by Landlord to Tenant in writing.
5. Additional Rent. All Taxes and other costs and expenses payable under this Agreement by Tenant and all damages, costs, and expenses that Landlord incurs or might incur by reason of Tenant's default, shall be deemed additional rent. In the event of Tenant's nonpayment of additional rent, Landlord shall have all the same rights and remedies as Landlord has for the nonpayment of Percentage Rent. The term "rental" and "rent" as used in this Agreement shall mean Percentage Rent and such additional rent.
6. Taxes.
a. Covenant to Pay Taxes. As additional rent, Tenant shall, throughout the Term, commencing effective as of the Term Commencement Date, pay directly to the appropriate taxing authorities all Taxes (as defined in Section 6(b)). All Taxes shall be paid before delinquency and before any fine, interest or penalty shall become due or be imposed by operation of law for their nonpayment. Tenant shall furnish to Landlord prior to the date when any Taxes would become delinquent receipts or other appropriate evidence establishing such payment. b. Definition of Taxes. The term "Taxes" shall include all real property taxes, possessory interest taxes, personal property taxes, charges and assessments (including but not limited to street improvement liens) which are levied, assessed upon or imposed by any governmental authority or political subdivision thereof during or with respect to any portion of the Term hereof with respect to the Premises or any improvements, fixtures, equipment or other property of Tenant, real or personal, located on the Land or used in connection with the operation of the Sports Park, and any tax which shall be levied or assessed in addition to or in lieu of such real or personal property taxes, and any license fees, taxes measured by or imposed upon rents, or other taxes or charges upon Landlord's leasing of the Land or the receipt of rent hereunder. All assessments, taxes, fees, levies and charges imposed by governmental agencies for services such as fire protection, street, sidewalk and road maintenance, refuse removal and other public services generally provided without charge to owners or occupants prior to the adoption of Proposition 13 by the voters of the State of California in the June 1978 election, also shall be deemed included within the definition of "Taxes" for the purposes of this Agreement.
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
c. Proration of Tenant's Tax Liability. Tenant's liability to pay Taxes shall be prorated on the basis of a 365-day year to account for any fractional portion of a fiscal tax year included in the Term at its commencement or expiration. Any Taxes payable after the Term Commencement Date (but before the expiration of the Term) but applicable, in whole or in part, to periods prior to the Term Commencement Date, shall be paid by Tenant. Landlord shall, however, pay to Tenant its pro rata share of such Taxes liability for periods prior to the Term Commencement Date at least ten (1 0) days prior to the date such Taxes are due and payable. d. Landlord Covenant. During the Term, Landlord shall not levy, assess or impose on Tenant, or which burden the Land or the Premises, any taxes, license fees, charges or assessments which are not levied, assessed or imposed generally within the City. a. Permitted Uses Tenant agrees to use and occupy the Premises continuously during the Term for the purpose of operating the Sports Park as described in this Agreement and Exhibit 2 of this Agreement and for no other purpose without exception. Use of a part of the Sports Park for a game room, including video games, pool tables and similar entertainment equipment, shall be permitted; provided, however, that any form of gaming, lawfUl or otherwise, will not be permitted on the Premises without the prior written consent of the Landlord. Subject to obtaining and maintaining required or appropriate licenses, permits or other approvals from the Alcoholic Beverage Control Agency or any other governmental jurisdiction having authority, Tenant may engage in the sale of beer, wine and liquor on the Premises.
b. Business Name. During the entire Term, Tenant shall conduct business in the Premises under the name "Big League Dreams Redding Sports Park" in the manner provided herein. c. Permits. Tenant shall at all times during the Term obtain, keep and maintain all licenses and permits required by state and local governmental authorities necessary to operate the Sports Park from the Premises, and comply with each and every term of each such permit, including, but not limited to, the City Use Permit and Environmental Impact Report Mitigation Measures. d. Security. Tenant shall at all times provide such security for the operation of the Premises as shall reasonably be foreseen by Tenant to be prudent to protect the customers, employees, guests, contractors and other invitees of the Premises, and to protect the owners and occupants of neighboring properties from the customers, employees, guests, contractors and other invitees of the Premises.
e. Local Youth Programs. During the Term, Tenant shall endeavor to accommodate on a preferential basis use of the Premises for local organized youth programs. As used herein, the term "local" shall mean and include organized youth programs as to which a majority of the participants are residents of the City of Redding. Use of the Premises by local organized youth programs shall be subject to the normal operating practices and rules of the Packet Pg. 182
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
Premises and of Big League Dreams Sports Parks generally and available times for league play shall be selected by Tenant, subject to, if he or she so requests, the reasonable approval of the City Manager of the Landlord.
a. Tenant. Tenant shall, at Tenant's expense, comply promptly with all applicable statutes, ordinances, rules, regulations, orders, covenants, conditions, and restrictions, and requirements of any governmental authority in effect during the Term, regulating the use or operation by Tenant of the Premises (collectively, the "Statutes") whether those Statutes are now in force or are subsequently enacted. Tenant shall keep and maintain in full force and effect, and in good standing, all permits and licenses required fiom state and local governmental authorities for operation of the Premises. The suspension or termination of any permit or license for a period in excess of thirty (30) days shall be a material breach hereof, but shall first be subject to the cure as provided in Section 17(a)(v). If any bureau, department or official of the state or county government or any other governmental authority (other than the City) having jurisdiction requires or recommends that any non-structural changes, modifications, replacements, alterations, or additional equipment be made or supplied in or to any portion of the Premises by reason of Tenant's use or operation thereof, Tenant shall, at Tenant's cost and expense, make and supply such non-structural changes, modifications, replacements, alterations or additional equipment. Tenant shall not use nor permit the use of the Premises in any manner that will tend to create waste or a nuisance.
The judgement of any court of competent jurisdiction, or the admission by Tenant in a proceeding brought against Tenant by any government entity, that Tenant has violated any Statute shall be conclusive as between Landlord and Tenant and shall constitute grounds for termination of this Agreement by Landlord.
b. Landlord. Landlord, and Landlord's contractors and agents, shall comply with all applicable Statutes of any governmental authority then in effect while developing the Project and constructing the Sports Park Improvements. Landlord represents and warrants that, as of the Term Commencement Date, the Premises will be in compliance with all applicable Statutes of any governmental authority then in effect.
In the event, during the Term, Landlord enacts or issues any new Statutes which would burden or restrict Tenant in the operation of the Sports Park beyond restrictions contained in this Agreement, the Environmental Impact Report Mitigation Measures or the City Use Permit, the City and Tenant shall negotiate in good faith modifications to the Percentage Rent formula or other provisions of this Agreement, the effect of which modifications would place Tenant in a comparable financial position had such Statutes not been enacted or issued. c. Landlord's Use of Parking;. Notwithstanding anything to the contrary, City maintains the right to utilize the Sports Park parking lot for its own use so long as it does not unreasonably interfere with Tenant's activities.
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
d. Landlord's Use of Land and Non-Competition. Landlord expressly reserves unto itself the right to use the rest of the Land for whatever purpose it may choose so long as such use does not unreasonably interfere with Tenant's use of the Premises hereunder. Landlord shall not compete with Tenant by itself organizing, or by contracting with third parties to organize, softball or baseball leagues or tournaments either on the Land or elsewhere in the City, provided that a) local non-profit youth baseball or youth softball organizations may contract with Landlord to play local youth baseball or softball games (but not tournaments designed to attract out of town teams) at other Landlord owned property and b) Landlord may continue to offer and organize local youth baseball or softball programs currently offered by Landlord as ofthe date ofthis Agreement at other Landlord owned property, but shall not offer or organize any new youth baseball or softball programs during the Term and shall use reasonable efforts to encourage existing youth baseball and softball programs, over a reasonable transition period, to utilize the Sports Park.
9. Landlord's Development of the Sports Park.
a. Landlord's Construction Obligations. The Sports Park Improvements shall be constructed by Landlord, as set forth in the Project Description and the Plans and Specifications, promptly and with due diligence. The quality of construction and the quality of materials used in the construction of the Sports Park Improvements shall be of a first class quality and in accordance with the Project Description and the Plans and Specifications. Landlord shall prosecute Landlord's construction obligations hereunder to completion without undue interruption or delay and in a good, workmanlike manner. Landlord warrants that it will endeavor to cause the Sports Park Improvements to be completed and possession of the Premises delivered to Tenant on or before August 1,2002. In the event the Sports Park Improvements are not completed and possession of the Premises is not delivered to Tenant on or before August 1,2002, Tenant shall have no obligation to pay any rent or other payments or perform any other obligations under this Agreement until the Term Commencement Date. Landlord shall have no liability to Tenant for failure to complete the Sports Park Improvements and deliver possession of the Premises on or before the date hereinbefore described. Tenant shall, however, have the option to terminate this Agreement, without further obligation or liability hereunder, in the event Landlord is unable to complete the Sports Park Improvements and deliver possession of the Premises to Tenant on or before May 1,2003. b. Guarantee of Materials. Landlord shall guarantee all work performed by or for Landlord in the construction of the Sports Park Improvements against defective workmanship and materials for a period of one (1) year from the Term Commencement Date (or such longer period as may be specified in the Plans and Specifications). Landlord, if permitted, shall assign to Tenant (or enforce for Tenant's benefit) any and all guarantees and/or warranties of workmanship and materials which it may receive or which are required in the Plans and Specifications with respect to those portions of the Premises required to be maintained and repaired by Tenant hereunder. Within fifteen (1 5) days after receipt of Landlord's certification of substantial completion of the Premises, Tenant shall supply to Landlord a written punch list (the "Punch List") setting forth any additional corrective work to the Premises which Tenant believes is required to be performed pursuant to the Packet Pg. 184
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
Plans and Specifications. In the event that no Punch List is provided by Tenant within such fifteen (1 5) day period, then Tenant shall be deemed to have accepted the Premises in its entirety subject to Landlord's guarantee obligations described above and any repair and maintenance obligations of Landlord under Section 1 1 (b) below. Landlord shall endeavor to complete or correct the Punch List items promptly and with due diligence.
c. Termination if Financing; Unavailable. Notwithstanding any other provision of this Agreement, if Landlord is in good faith unable to secure adequate construction financing to enable it to award a construction contract, based upon bid prices received by it, Landlord may terminate this Agreement by giving Tenant thirty (30) days' advance written notice.
10. Utilities and Services. Tenant shall make all arrangements for and pay prior to delinquency all utilities and services furnished to or used by it or its licensees or subtenants, including, without limitation, gas, electricity, water, telephone service, communications, cable television, trash collection, sewer, and storm drainage. Landlord shall, as part of its construction obligations, contract for and pay all necessary charges to connect the Sports Park, and all necessary locations within the Sports Park, to, or to access, gas, electrical, water, telephone, communications, cable television lines or sources, sewer, and storm drainage. 1 1. Maintenance and Re~airs.
a. Tenant's Obliprations. Except as provided in Section 1 1 (b) below, throughout the Term, Tenant shall, at Tenant's sole cost and expense maintain the entire Premises in a safe and first class condition and in good repair (damage by casualty described in Section 13 excepted) and in accordance with (i) all applicable Statutes; (ii) the insurance underwriting board or insurance services office having or claiming jurisdiction over the Premises; (iii) all insurance companies insuring all or any part of the Premises; and (iv) standards consistent with other Big League Dreams Sports Parks. Semi-annual meetings shall be held between BLD's Maintenance Supervisor and Landlord's Park Maintenance Foreman to reaffirm that these standards are achieved. b. Landlord's Obligations. For the first five (5) Lease Years, Landlord shall, at Landlord's sole cost and expense make all repairs and replacements required because of latent defects or latent faulty installation or construction by Landlord or as the result of the act, default, omission, or negligence of Landlord, its employees, agents, licensees, contractors, or subcontractors.
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
c. Furniture, Fixtures & Equipment. Within thirty (30) days of submission of written receipts therefor, the Landlord shall reimburse Tenant for the initial purchase of the FF&E.
All FF&E shall be maintained by Tenant pursuant to Section 1 1 (a).
12. Alterations. Tenant shall not make any alterations or additions to the Premises (other than interior, non-structural alterations costing not more than $25,000 in any one instance) after completion of the Sports Park Improvements without the prior written consent of the City Manager, which consent may be withheld in the sole discretion of the Landlord. If Tenant desires to make any alterations to the Premises as provided in this section, the alterations or additions shall not be commenced in any case until twenty (20) days after the City Manager has received written notice from Tenant stating the date the construction of the alterations or additions is to commence so that the City Manager, on behalf of Landlord, can post and record an appropriate notice of nonresponsibility. Any alterations or additions or changes to the Premises made by Tenant shall be done in accordance with all applicable laws, rules, and regulations, including building codes and prevailing wage requirements if applicable. All such work requiring a building permit shall be performed under the direction and supervision of a competent contractor(s) licensed and in good standing under the laws of the State of California. Tenant shall not permit any mechanic's or materialman's liens to remain against the Premises for work or materials furnished in connection with any such alterations, additions or changes to the Premises. If Tenant shall, in good faith, contest the validity of any such lien, Tenant shall, at its sole expense, defend itself and Landlord against the same and upon Landlord's request, furnish to Landlord a surety bond in an amount equal to one hundred twenty percent (125%) of such contested lien indemnifying Landlord against the liability for same and holding the Premises free from any affect of such lien. All alterations and additions to the Premises shall become the property of Landlord and shall remain on and be surrendered with the Premises at the expiration or sooner termination of this Agreement.
13. Destruction.
a. Partial Destruction; Restoration by Tenant. If the Premises are damaged or destroyed during the Term, the cost of repairing the Premises is less than thirty percent (30%) of the replacement cost of the Sports Park Improvements constituting the Premises and the Term has at least ten (1 0) years remaining, then Tenant shall, promptly restore the Premises to substantially the same condition as they were in immediately before such damage or destruction, in accordance with the original Plans and Specifications (except for changes as may be required by changed building and safety codes, which Tenant shall make at Tenant's sole cost and expense). Such damage or destruction shall not terminate this Agreement. Tenant shall, use commercially reasonable efforts to complete such repairs within one-hundred eighty (1 80) days from the date of the casualty. b. Ma-ior Damage or Destruction; Tenant's Riaht to Terminate. If the Premises are damaged or destroyed by flood or earthquake (or other casualty not covered by the all risk Packet Pg. 186
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
property insurance required to be maintained by Tenant) during the Term and the cost of repairing the Premises is thirty percent (30%) or more of the replacement cost of the Sports Park Improvements constituting the Premises, then Tenant shall have the option of either repairing and reconstructing the Premises or of terminating this Agreement. Notwithstanding the foregoing, provided that damage or destruction to the Premises is due to a cause covered by the all risk property insurance required by this Agreement or by insurance otherwise maintained by Tenant, then Tenant shall restore the Premises to substantially the same condition they were in immediately before such damage or destruction, in accordance with the original Plans and Specifications (except for any changes that may be required by changed building and safety codes, which Tenant shall make at Tenant's sole cost and expense) to the extent of insurance proceeds received; provided, however, that (1) if the cost of the restoration of the Sports Park Improvements shall exceed the insurance proceeds available to Tenant to perform such restoration by an amount in excess of $100,000, or (2) there is damage to or destruction of the Premises and the governmental restrictions then in effect with respect to the Premises prohibit construction of economically viable replacement improvements with respect to a use which Tenant has a right to make under this Agreement, or (3) such destruction occurs during the last five (5) years of the Initial Term or during any extension term of this Agreement, then Tenant shall have the right to terminate this Agreement as hereinafter set forth.
To exercise the right of termination described in this subsection (b), Tenant must comply with all of the following conditions:
1. Give Landlord notice of termination within thirty (30) days after the damage or destruction, specifying the date of termination which shall be not less than sixty (60) days nor more than one hundred twenty (120) days after the date such notice of termination is given; . .
11. Prior to the termination date, cure any defaults on Tenant's part under this Agreement;
...
111. Continue to make all payments when due (including without limitation the prorated portion of any additional rent, including any rent due under Section 4(g), becoming due after Tenant has given the notice of termination but prior to the date of termination), if any, as required by the provisions of this Agreement until the date of termination; iv. Prior to the termination date, pay in full any outstanding indebtedness incurred by Tenant and secured by an encumbrance or encumbrances on the leasehold, or alternatively, deliver to Landlord the written consent of the holders of all such encumbrances to the early termination of this Agreement and extinguishment of their liens; Packet Pg. 187
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
v. Prior to the termination date, cause to be discharged all liens and encumbrances encumbering the Premises or Tenant's leasehold interest resulting from any act or omission of Tenant;
vi. On or before the termination date, deliver possession of the Premises to Landlord, quitclaim all right, title and interest in the Premises to Landlord and cease to do business on the Premises, and vacate the Premises;
vii. Prior to the termination date, effectively relinquish, assign, and deliver to Landlord all insurance proceeds resulting from the casualty.
In the event of any such termination, any additional rent paid in advance shall be prorated through the date the Agreement is terminated.
c. Abatement or Reduction of Rent. In case of any damage or destruction where this Agreement is not terminated, there shall be no abatement or reduction of Percentage Rent or additional rent; however, during the period of reconstruction, Tenant may continue to conduct business from the Premises from temporary facilities or temporary structures subject to compliance with local building and safety codes or other applicable municipal codes. Tenant shall use commercially reasonable efforts to complete such reconstruction and re-open the Premises for business within a reasonable time, not to exceed ten (10) months in the aggregate. d. Insurance Proceeds. If Tenant is obligated or elects to restore the Premises pursuant to this section, the proceeds of any insurance maintained under this Agreement shall be disbursed pursuant to a customary construction disbursement system or service for payment of costs and expenses of repair. If the insurance proceeds are insufficient to cover the cost of repair, and Tenant is nonetheless obligated to repair under Section 13(b), then Tenant shall deposit the amount of the deficiency with Landlord, and such funds shall be disbursed first, and the balance of the construction costs shall be disbursed from the insurance proceeds by Landlord.
14. Insurance and Indemnity.
a. Liability Insurance. Effective as of the Term Commencement Date, Tenant shall procure at its sole cost and expense, and thereafter keep in effect at all times until the end of the Term, commercial general liability insurance which shall include broad form contractual liability insurance coverage insuring all of Tenant's indemnity obligations under this Agreement. Such coverage shall have a minimum combined single limit of liability of at least $2,000,000. If commercial general liability insurance or other form with a general aggregate limit is used, the general aggregate limit shall be twice the required occurrence limit. Tenant's public liability insurance shall include dram shop liability insurance or liquor liability insurance. All of Tenant's Packet Pg. 188
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
public liability insurance policies shall be written to apply to all bodily injury, property damage, personal injury and other covered loss, however occasioned, occurring during the policy term, and shall be endorsed to provide that such coverage shall be primary and that any insurance maintained by Landlord shall be excess insurance only. Tenant may satisfy the requirements of this subsection (a) by having BLD USA obtain a master policy of liability insurance applicable to multiple Big League Dreams Sports Parks which shall, by endorsement, specifically name the Sports Park as an insured and comply with other requirements of this Section 14 applicable to such insurance. b. Workers' Compensation Insurance. Tenant and Tenant's sublessees and concessionaires shall maintain workers' compensation insurance in accordance with California law and an employer's liability insurance endorsement with customary limits. c. Propertv Insurance.
1. All Risk Coverage. Tenant shall at Tenant's expense obtain and keep in force during the Term of this Agreement (commencing as of the Term Commencement Date) a policy of insurance covering loss or damage to the Premises, all FF&E, and other personal property of Tenant and Landlord, in the amount of the full replacement value thereof, as the same may exist from time to time, against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, and special extended perils ("all risk," as that term is known in the insurance industry). If such insurance coverage has a deductible clause, the deductible amount shall not exceed $20,000 per occurrence. Tenant shall be liable for such deductible amount. Tenant shall obtain such endorsements as are recommended by Landlord's risk manager, including, without limitation, an endorsement for changes in building codes, provided such endorsements may be obtained on commercially reasonable terms. Landlord shall be the loss payee on such policy.
Landlord shall receive and retain all insurance proceeds to the extent they are not used to rebuild the Premises following an insured casualty.
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11. Replacement Value. The "full replacement value" of the property to be insured under this section shall be determined by the company issuing the insurance policy at the time the policy is initially obtained. Not more frequently than once every two (2) years, either party shall have the right to notify the other party that it elects to have the replacement value redetermined by an insurance company. The redetermination shall be made promptly and in accordance with the rules and practices of the insurance company, and each party shall be promptly notified of the results by the company. The insurance policy shall be adjusted according to the redetermination. d. Insurance Policies.
1. Coverane Re-Evaluation. Not more frequently than once every ten (1 0) years, if in the reasonable opinion of Landlord the amount or type of any insurance at that time is not adequate or not provided for herein, Tenant shall either acquire or increase the insurance coverage as required by Landlord provided Tenant may obtain such increased coverage on commercially reasonable terms.
Packet Pg. 189
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
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11. Policy and Companv Requirements. Tenant shall deliver to Landlord copies of policies of such insurance or certificates with attached original endorsements evidencing the existence and amounts of such insurance with loss payable clauses as required by this Section
14. Tenant shall, at least thirty (30) days prior to the expiration of such policies, furnish Landlord with renewals or binders thereof. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A-:VII and licensed to do business in the State of California. All policies of insurance must (other than the property insurance, which shall name the Landlord as the loss payee) be endorsed to contain the following:
(1) The Landlord, its members, council members, officers, employees, volunteers, and any additional parties designated by the Landlord, as additional insureds.
The coverage shall contain no special limitations of the scope of protection afforded the Landlord. (2) The insurance coverage shall be primary insurance as respects the Landlord, its members, council members, officers, employees, agents, and any additional parties designated by the Landlord. Any insurance or self-insurance maintained by the Landlord, its members, council members, officers, employees and volunteers, and any additional parties designated by the Landlord shall be excess of the insurance and shall not contribute with it. (3) No such policy shall be cancelable or subject to reduction of coverage or other modification expect after thirty (30) days prior written notice to Landlord. (4) As respects workers7 compensation insurance, the policy shall be endorsed with a waiver of subrogation clause for Landlord, its respective members, board members, officers, employees, and volunteers.
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111. Policv Compliance. Tenant shall not use the Premises in any manner, even if the use is for the purposes permitted herein, that will result in the cancellation of any insurance required under this Agreement. Tenant further agrees not to keep on the Premises or permit to be kept, used, or sold thereon, anything prohibited by any fire or other insurance policy covering the Premises.
iv. Failure to Obtain Insurance. If, after written notice and a fifteen (1 5) day opportunity to cure, Tenant shall fail to obtain any insurance required under this Agreement, Landlord may, at its election, obtain such insurance and Tenant shall, as additional rent, reimburse Landlord for the cost thereof plus a five percent (5%) handling charge, within five (5) days following demand therefor. If Tenant fails or refuses to maintain insurance as required hereunder, or fails to provide the proof of insurance, Landlord shall, subject to the notice and cure provisions of Section 17(a)(v), have the right to declare this Agreement in default, and Landlord shall be entitled to exercise all legal remedies for breach of this Agreement. v. relations hi^ to Indemnities. All insurance required to be provided hereunder is in addition to, and not in lieu of, the indemnity provisions of Section 14(f) hereof. The Packet Pg. 190
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
procuring of such required policies of insurance shall not be construed to limit Tenant's liability hereunder, nor to fulfill the indemnification provisions and requirements of this Agreement. e. Waiver of Subrogation. Tenant and Landlord each hereby release and relieve each other, and waive their right of recovery against the other, for loss or damage arising out of or incident to the perils insured against under Section 14(c), which perils occur in, on or about the Premises, whether due to the negligence of Landlord, or Tenant or their agents, employees, contractors andlor invitees, but only to the extent of insurance coverage. Tenant shall, upon obtaining the policies of insurance required hereunder, give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Agreement and obtain the insurance carrier's written consent thereto.
F. Indemnity. Tenant shall, commencing with the Term Commencement Date, indemnify, defend, protect, and hold harmless Landlord, the City and their respective members, employees, agents and contractors (collectively the "Indemnitees") from and against any and all claims, losses, proceedings, damages, causes of action, liability, costs and expenses (including reasonable attorneys' fees), arising from or in connection with, or caused by (i) any act, omission or negligence of Tenant or any sublessee of Tenant, or their respective contractors, licensees, invitees, agents, servants or employees, wheresoever the same may occur; (ii) any use of the Premises, or any accident, injury, death or damage to any person or property occurring in, on or about the Premises, or any part thereof, or fiom the conduct of Tenant's business or from any activity, work or thing done, permitted or suffered by Tenant or its sublessees, contractors, employees, or invitees, in or about the Premises, or elsewhere (other than when arising as a result of defective construction or workmanship by Landlord or its contractors or agents, or gross negligence or intentional misconduct of an Indernnitee); and (iii) any breach or default in the performance of any obligations on Tenant's part to be performed under the terms of this Agreement, or arising from any negligence of Tenant, or any such claim or any action or proceeding brought thereon; and in case any action or proceeding be brought against an Indemnitee by reason of any such claim, Tenant upon notice from Landlord shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord. Tenant shall have no duty to defend or indemnify Landlord or any other Indemnitee fiom any Legal Challenge. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property or injury to person in, upon or about the Premises arising from any cause other than defective construction or workmanship by Landlord or its contractors or agents, gross negligence or intentional misconduct of an Indemnitee, or Hazardous Materials existing on the Land prior to the Term Commencement Date as provided in Section 30 and Tenant hereby waives all claims in respect thereof against Landlord. These provisions are in addition to, and not in lieu of, the insurance required under this Section 14.
15. Condemnation.
a. Definitions.
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
1. "Condemnation" means (A) the exercise of any governmental power, whether by legal proceedings or otherwise, by a Condemnor and (B) a voluntary sale or transfer by Landlord to any Condemnor, either under threat of condemnation or while legal proceedings for condemnation are pending.
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11. "Date of Taking" means the date the Condemnor has the right to possession of the property being condemned.
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111. "Award' means all compensation, sums, or anythmg ofvalue awarded, paid, or received on a total or partial condemnation.
iv. "Condemner" means any public or quasi-public authority, or private corporation or individual, having the power of condemnation or eminent domain. b. ke;hts and Obligations Governed bv Lease. If during the Term there is any taking of all or any part of the Premises or any interest in this Agreement by Condemnation, the rights and obligations of the parties shall be determined pursuant to this section. Each party waives the provisions of California Code of Civil Procedure Section 1265.130 allowing either party to petition the Superior Court to terminate this Agreement in the event of a partial taking of the Premises.
c. Total Taking. If the Premises are totally taken by Condemnation, this Agreement shall terminate on the Date of Taking.
d. Partial Taking. If any portion less than all of the Premises is taken by Condemnation, this Agreement shall remain in effect, except that Tenant can elect to terminate this Agreement if, in the reasonable judgment of Tenant, the portion of the Premises not so taken cannot be so repaired or reconstructed, taking into consideration the amount of the award available for repair, so as to be suitable for Tenant's continued use of the Premises for the same use as the Premises are being used immediately prior to the taking and the remaining Premises would not be economically feasibly usable by Tenant. If Tenant elects to terminate this Agreement, Tenant must exercise its right to terminate by giving notice to Landlord within thirty (30) days after the Date of Taking. If Tenant elects to terminate this Agreement, Tenant also shall notify Landlord of the effective date of the termination, which effective date shall not be later than ninety (90) days after Tenant has notified Landlord of its election to terminate. If Tenant does not terminate this Agreement within the ninety (90) day period, this Agreement shall continue in full force and effect.
Packet Pg. 192
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
e. Restoration of Premises. If there is a partial taking of the Premises and this Agreement remains in full force and effect pursuant to Section 15(d), Tenant shall commence all necessary restoration as promptly as reasonably practicable under the circumstances but in all events within thirty (30) days after receipt of the Award, and shall thereafter diligently pursue such restoration work to completion.
f. Temporaw Taking. On any taking of the temporary use of all or any part or parts of the Premises for a period, or of any estate less than a fee, ending on or before the expiration date of the Term, the Term shall not be reduced, extended, or affected in any way, and Tenant shall be entitled to any Award for the use or estate taken. If a result of the temporary taking is to necessitate expenditures for changes, repairs, alterations, modifications, or reconstruction of the Sports Park Improvements, the Award shall be paid to Tenant, and Tenant shall commence all necessary changes, repairs, alterations, modifications or reconstruction of the Sports Park Improvements as promptly as reasonably practicable under the circumstances but in all events within thirty (30) days after receipt of the Award, and shall thereafter diligently pursue such restoration work to completion. At the completion of the work and the discharge of the Premises from all liens and claims, Tenant shall be entitled to any surplus and shall be liable for any deficit. If any such taking is for a period extending beyond the expiration date of the Term, the taking shall be treated under the foregoing provisions for total and partial takings, depending upon whether the temporary taking is of all or only a part of the Premises.
g. Avvlication of Award. No Award for any partial or entire taking shall be apportioned. Awards for partial or temporary takings, where the Lease is not terminated, shall be applied by Tenant to restoration of the Premises as provided above. Tenant hereby assigns to Landlord any Award for a total taking which may be made, together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof; provided, however, that nothing contained herein shall be deemed to give Landlord any interest in or require Tenant to assign to Landlord any Award made to Tenant for the unamortized value of any additions or improvements on the Premises constructed by Tenant in accordance with this Agreement (amortized on a straight line basis over the remainder of the Term of this Agreement from the Date of Taking), the taking of personal property and fixtures belonging to Tenant and removable by Tenant at the expiration of the Term hereof, as provided hereunder, or for the interruption of, damage to, or loss of Tenant's business and goodwill, or for relocation expenses recoverable against the condemning authority, or in the event of a partial taking, the cost of restoring the Premises to a usable condition.
16. Assipnment, Sublettinp and Encumbering.
a. Prohibition Against Assignment. Subletting, and Encurnberinq. Tenant shall have the right to assign this Agreement to an affiliated entity as to which a Controlling Percentage is owned by BLD USA. Tenant shall not assign, transfer, or encumber all or any portion of its interest in this Agreement or in the Premises, or sublease all or any part of the Premises, or allow Packet Pg. 193
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
any other person or entity (except Tenant's authorized representatives) to occupy or use all or any part of the Premises, without Landlord's prior written consent, which consent shall not be unreasonably withheld, delayed or conditioned. No licensees, concessionaires or sublessees of all or part of the Premises shall, without the prior written approval of Landlord, be Affiliates of Tenant.
In the event Landlord approves any assignment or subletting of the Premises, Landlord shall cooperate with Tenant in effectuating the reasonable requirements of prospective assignees or sublessors to complete any such transaction. In no event is Tenant or any subtenant authorized to encumber the Premises or the FF&E provided by Landlord without the advance written approval of Landlord, which approval may be granted or withheld by Landlord in its sole discretion.
1. A~proval Procedure for Assignments andsubleases. Tenant shall first notify Landlord at least forty-five (45) days prior to the proposed effective date of any assignment or sublease, in writing, of its desire to do so and shall submit in writing to Landlord (1) the name of the proposed subtenant or assignee, (2) the terms and conditions of the proposed sublease or assignment (including a copy of the written agreement for same,) (3) financial statements for the two most recent completed fiscal years of the proposed subtenant or assignee, and (4) a bank reference.
Thereafter, Tenant shall furnish such supplemental information as Landlord may reasonably request concerning the proposed subtenant or assignee. At any time within thirty (30) days after Landlord's receipt of the information specified above, Landlord may by written notice to Tenant elect to (1) consent to the sublease or assignment, or (2) disapprove of the sublease or assignment in Landlord's reasonable discretion. Such grounds may include, without limitation, a possible material adverse effect upon the reputation of the Project from the nature of the subtenant or assignee; a reputation for financial reliability on the part of the proposed subtenant or assignee which is unsatisfactory in the sole judgment of Landlord; insufficient experience of the subtenant or assignee to operate the Sports Park; likely adverse impact on the Gross Revenues of the Sports Park; or inexperience in performance of Tenant's other obligations under this Agreement. If Landlord consents to the sublease or assignment (or fails to respond to Tenant's request) within the forty-five (45) day period, Tenant may thereafter enter into such assignment or sublease of the Premises, upon the terms and conditions and as of the effective date set forth in the information furnished by Tenant to Landlord. . .
11. Executed Document CODV. Notwithstanding Landlord having granted its consent to any assignment or subleasing, prior to the effective date of any assignment or the commencement date of any sublease, Tenant shall furnish Landlord with a copy of the fully executed sublease or assignment agreement.
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111. Minimum Term. No sublease of the Premises or portion thereof, or assignment of this Agreement, shall be for a period of less than one (1) year, nor shall any sublease extend beyond the expiration date of the Term of this Agreement. iv. Assumption. Each permitted assignee or transferee shall assume and be deemed to have assumed, and each sublessee shall be bound by, this Agreement. In the case of Packet Pg. 194
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
an assignment of this Agreement where Landlord's approval is required and Landlord so consents in writing, Landlord shall not release Tenant from any further obligations arising under this Agreement after the date of the assignment unless such assignment specifically provides for such a release. No assignment shall be binding on Landlord unless such assignee or Tenant shall deliver to Landlord a counterpart of such assignment which contains a covenant of assumption by the assignee, but the failure or refusal of the assignee to execute such instrument of assumption shall not release or discharge the assignee from its liability as set forth above. b. Additional Provisions. No consent by Landlord to any assignment, encumbrance, or sublease shall constitute a waiver of the provisions of this section. Tenant shall not make any modifications to an approved sublease without Landlord's prior written consent. For the purposes hereof, an "encumbrance" shall mean a mortgage, deed of trust, land sale contract, lease or other financing device. Any attempted assignment, encumbrance, or Lease, if not approved by Landlord in advance pursuant to this Section 16, shall be voidable by Landlord and, at Landlord's election, shall, subject to the notice and cure provisions of Section 17(a)(v), constitute a default hereunder. For purposes of this Agreement, the creation of any concession agreement or similar agreement for the operation of the food and beverage facilities at the Sports Park is also considered a sublease.
17. Default.
a. Tenant's Default. The occurrence of any of the following shall constitute a default by Tenant:
1. Failure to Pay Rent. Failure to pay rent (whether Percentage Rent, or any other rent due to Landlord) or any other additional payment required to be made by Tenant hereunder as and when due, where such failure continues for ten (1 0) days after delivery by Landlord to Tenant of written notice of such failure.
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11. Failure to Pay Taxes. Failure to pay any Taxes on a timely basis, or the failure to provide any insurance required hereunder, where such failure continues for fifteen (1 5) days after delivery by Landlord of written notice of such failure to Tenant. ... in. Surrender. Abandonment or surrender of the Premises or the leasehold estate by Tenant.
iv. Default Under Related Agreements. Tenant's default under any Related Agreement, where such default is not cured by Tenant (or BLD USA, as applicable) within the cure period applicable to such default, if any, under such agreements.
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
v. Default Under this Anreement. Failure to perform any other covenant or provision of this Agreement, if the failure to perform is not cured within thirty (30) days after delivery by Landlord to Tenant of written notice. If the failure to perform cannot reasonably be cured within thirty (30) days, Tenant shall not be in default of this Agreement if Tenant commences to cure the failure to perform within the thirty (30) day period and thereafter diligently and in good faith prosecutes the cure to completion.
vi. Attachment. The subjection of any right or interest of Tenant to attachment, execution, or other levy, or to seizure under legal process, if not released within sixty (60) days after written notice from Landlord to Tenant. vii. Insolvencv. An assignment by Tenant for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Tenant under any law for the purpose of adjudicating Tenant a bankrupt; or for extending time for payment, adjustment, or satisfaction of Tenant's liabilities; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency; unless the assignment or proceeding, and all consequent orders, adjudications, custodies, and supervision are dismissed, vacated, or otherwise permanently stayed or terminated within sixty (60) days after the assignment, filing, or other initial event. . . *
viii. Receiversh<~. The appointment of a receiver, unless such receivershp is terminated within sixty (60) days after the appointment of the receiver, to take possession of Tenant's interest in the Premises or of Tenant's interest in the leasehold estate or of Tenant's operations on the Premises for any reason, including but not limited to, an assignment for the benefit of creditors or voluntary or involuntary bankruptcy, but not including receivership (A) pursuant to a permitted first leasehold encumbrance, or (B) instituted by Landlord, the event of default being not the appointment of a receiver at Landlord's instance but the event justifying the receivership. b. Landlord's Remedies.
1. Cumulative Nature of Remedies. If any default by Tenant shall continue uncured, following notice of default as required by this Agreement, for the period, if any, applicable to the default under the applicable provision of this Agreement, Landlord shall have the remedies described in this subsection (b) in addition to all other rights and remedies provided by law or equity, to which Landlord may resort cumulatively or in the alternative. . .
11. Termination. Landlord may at Landlord's election terminate this Agreement by giving Tenant written notice of termination. In the event Landlord terminates this Agreement, Landlord may recover possession of the Premises (which Tenant shall surrender and vacate upon demand) and remove all persons and property therefrom. Landlord shall be entitled to recover as damages all of the following:
Packet Pg. 196
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
(1) The worth at the time of the award of any unpaid rent or other charges which have been earned at the time of termination; (2) The worth at the time of the award of the amount by which the unpaid rent and other charges which would have been earned after termination until the time of the award exceeds the amount of the loss of such rental or other charges that Tenant proves could have been reasonably avoided;
(3) The worth at the time of the award of the amount by which the unpaid rent and other charges for the balance of the Term after the time of the award exceeds the amount of the loss of such rental and other charges that Tenant proves could have been reasonably avoided; and
(4) Any other amount necessary to compensate Landlord for the detriment proximately caused by Tenant's failure to perform its obligations under this Agreement or which in the ordinary course of things would be likely to result therefrom. iii. Worth Defined. As used in subsections (1) and (2) above, the "worth at the time of the award" shall be computed by allowing interest at the rate of ten percent (1 0%) per annurn. As used in subsection (3) above, the "worth at the time of the award" shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award.
iv. Continuation of the Lease. Even though Tenant has breached this Agreement and abandoned the Premises, at Landlord's option this Agreement shall continue in effect for so long as Landlord does not terminate Tenant's right to possession. Landlord may enforce all of its rights and remedies hereunder, including the right to recover rent as it comes due under this Agreement. In such event, Landlord will permit Tenant to sublet the Premises or to assign its interest in this Agreement, or both, with the consent of Landlord, which consent will not unreasonably be withheld provided the proposed assignee or sublessee is reasonably satisfactory to Landlord as to credit and reputation and will occupy the Premises for the same purposes specified herein, and provided that Tenant shall cure all defaults to Landlord as a condition precedent to the effectiveness of Landlord's consent. For purposes of this subsection, the following shall not constitute a termination of Tenant's right to possession: (i) acts of maintenance or preservation or efforts to relet the Premises; or (ii) the appointment of a receiver under the initiative of Landlord to protect Landlord's interest under this Agreement.
v. Use of Tenant's Personal Property. Landlord may at Landlord's election use Tenant's personal property and trade fixtures located on, about or appurtenant to the Premises or any of such property and fixtures without compensation and without liability for use or damage, or store them for the account and at the cost of Tenant. The election of one remedy for any Packet Pg. 197
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
one item shall not foreclose an election of any other remedy for another item or for the same item at a later time.
vi. Assignment ofsubrents. Tenant assigns to Landlord all subrents and other sums falling due fiom subtenants, licensees, and concessionaires (herein collectively called "subtenants") during any period in which Landlord has the right under this Agreement, whether exercised or not, to reenter the Premises for Tenant's default. Tenant shall not have any right to such sums during that period. This assignment is subject and subordinate to any and all assignments of the same subrents and other sums to the lender under a permitted first leasehold encumbrance.
Landlord may at Landlord's election reenter the Premises with or without process of law, without terminating this Agreement, and either or both collect these sums or bring action for the recovery of the sums directly from such obligors. Landlord shall receive and collect all subrents and proceeds from reletting, applying them: first, to the payment ofreasonable expenses (including attorneys' fees or brokers' commissions or both) paid or incurred by or on behalf of Landlord in recovering possession, placing the Premises in good condition, and preparing or altering the Premises for reletting; second, to the reasonable expense of securing new subtenants; third, to the fulfillment of Tenant's covenants to the end of the Term; and fourth, to Landlord's uses and purposes. Tenant shall nevertheless pay to Landlord on the due dates specified in this Agreement the equivalent of all sums required of Tenant under this Agreement, plus Landlord's expenses, less the proceeds of the sums assigned and actually collected under this provision.
c. Late Charge. Tenant hereby acknowledges that late payment by Tenant to Landlord of rent and other charges due under this Agreement will cause Landlord to incur costs not contemplated by this Agreement, the exact amount of which will be extremely difficult to ascertain.
Such costs include, but are not limited to processing and accounting charges, and late charges which may be imposed on Landlord by the terms of any mortgage or trust deed covering the Premises, or bond issues of Landlord. Accordingly, if any delinquent installment of rent or any other charge due from Tenant is not received by Landlord or Landlord's designee within ten (10) days after written demand for payment shall have been delivered by Landlord to Tenant, then, at Landlord's election and upon Landlord's demand, Tenant shall pay to Landlord a late charge equal to ten percent (1 0%) of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of the late payment by Tenant. No late charge may be imposed more than once for the same late rental payment. Acceptance of such late charge by Landlord shall in no event constitute a waiver of Tenant's default with respect to such overdue amount. If Tenant fails to pay any two installments of Percentage Rent in the time (including applicable notice and cure periods) required by this Agreement, then Landlord also shall have the right, for a period of three (3) Lease Years, to require that all future Percentage Rent be payable monthly rather than quarterly. Landlord shall give Tenant written notice of such election at least five (5) days before the next monthly payment shall be due. d. Landlord's Default. The occurrence of the following shall constitute a default by Landlord: Landlord's failure to perform any covenant or provision of this Agreement or of any Related Agreement, if the failure to perform is not cured within thirty (30) days after delivery by Packet Pg. 198
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
Tenant to Landlord of written notice specifying the specific nature of the alleged default. If the failure to perform cannot reasonably be cured within thirty (30) days, Landlord shall not be in default of this Agreement or of any Related Agreement if Landlord commences to cure the failure to perform within the thirty (30) day period and thereafter diligently and in good faith prosecutes the cure to completion.
e. Tenant's Remedies. If any default by Landlord shall continue uncured, following notice of default as required by this Agreement, for the period specified in subsection (d) above, Tenant may terminate this Agreement andlor pursue any and all other rights and remedies available at law or in equity under the laws of the State of California.
18. Landlord's Entrv on Premises. Landlord and its authorized representatives shall have the right to enter the Premises at all reasonable times, upon giving at least twenty-four (24) hours prior notice, for any of the following purposes:
a. Verifv Condition To determine whether the Premises are in the condition required by this Agreement and whether Tenant is complying with its obligations under this Agreement;
b. Post Notices To serve, post, or keep posted any notices required or allowed under the provisions of this Agreement;
c. Show Property To show the Premises for any reasonable purpose at any time during the Term; and
d. Business Purposes To carry out any building or property management business purpose in or about the Premises.
Landlord shall not be liable in any manner for any inconvenience, disturbance, loss of business, nuisance, or other damage arising out of Landlord's entry on the Premises as provided in this section, except damage resulting from the acts or omissions of Landlord or its authorized representatives. Tenant shall not be entitled to an abatement or reduction of rent if Landlord exercises any rights reserved in this section. Landlord shall conduct its activities on the Premises as allowed in this section in a manner that reasonably attempts to minimize any inconvenience, annoyance, or disturbance to Tenant's business operations.
19. Notices. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party shall be in writing and shall be given to the addresses set forth below, and shall be deemed delivered three (3) days after deposit into the United States mail, postage prepaid, by registered or certified mail, return receipt requested. Unless notice of a different address has been given in accordance with this section, all such notices shall be addressed as follows:
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
If to Landlord, to: City of Redding
777 Cypress Avenue
Redding, California 9600 1
Attention: Mike Warren, City Manager
With a copy to:
If to Tenant, to:
With a copy to:
Redding City Attorney
777 Cypress Avenue
Redding, California 9600 1
Attention: Dave Tranberg, Assistant City Attorney
Big League Dreams Redding, LLC
33-700 Date Palm Drive
Cathedral City, California 92234
Attention: Richard Odekirk
Big League Dreams USA, LLC
10550 Galena Street
Mira Loma, California 9 1752
Attention: Scott Parks LeTellier
20. Attornevs' Fees.
a. If Landlord becomes a party to any litigation brought by any third party concerning this Agreement or the Premises as to which Landlord is entitled to indemnification from Tenant, then Tenant shall be liable for actual attorney's fees and court costs incurred by Landlord in the litigation.
b. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to have and recover fiom the losing party its reasonable attorneys' fees and costs of suit.
21. Liti~ation Concerning Validity of this Apreement. In the event any Legal Challenge is undertaken, Landlord shall have the right, exercisable not later than ninety (90) days from the date of this Agreement, to terminate this Agreement by thirty (30) days written notice to Tenant without any further liability to Tenant whatsoever; provided, however, Landlord shall not terminate this Agreement if Tenant shall agree in writing to indemnify, defend, and hold harmless Landlord for all costs and expenses incurred by Landlord on account of such Legal Challenge, and shall deposit with Landlord reasonable cash or cash equivalent security therefor. Such defense shall be undertaken by legal counsel selected and paid for by Tenant, subject to Landlord's reasonable approval. Landlord shall have no liability to Tenant if this Agreement is terminated by reason of such Legal Challenge.
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
22. Estoppel Certificates. At any time and from time to time, within thirty (30) days after notice of request by either party, the other party shall execute, acknowledge, and deliver to the requesting party, or to such other recipient as the notice shall direct, a statement certifying that this Agreement is unmodified and in full force and effect; or, if there have been modifications, that it is in full force and effect as modified in the manner specified in the statement and acknowledging that there are no uncured defaults or failures to perform any covenant or provision of this Agreement on the part of the requesting party or specifying any such defaults or failures which are claimed to exist.
The statement shall also state the dates to which the rent and any other charges have been paid in advance. The statement shall be such that it can be relied on by any auditor, creditor, commercial banker, and investment banker of either party and by any prospective lender with respect to the Premises or all or any part or parts of Tenant's or Landlord's interests under this Agreement. Either party's failure to execute, acknowledge, and deliver, on request, the certified statement described above within the specified time shall constitute a breach of this Agreement. If Tenant fails to deliver the certificate within ten (1 0) days, Tenant constitutes and appoints Landlord as its special attorney- in-fact to execute and deliver the certificate to a third party, which appointment is irrevocable and is hereby coupled with an interest.
23. Subordination. This Agreement is subject and subordinate to all prior leasesand underlying liens, mortgages and deeds of trust which now affect the Premises or the Land, and to all renewals, modifications, consolidations, replacements, and extensions thereof. If the holder or holders of any such mortgage or deed of trust shall advise Landlord that they desire or require this Agreement to be prior and superior thereto, upon written request of Landlord to Tenant, Tenant agrees promptly to execute, acknowledge, and deliver any and all docurnents or instruments which are reasonably necessary or desirable for purposes thereof. Landlord shall have the right to cause this Agreement to be and become and remain subject and subordinate to future and further ground or underlying financing leases, mortgages or deeds of trust which may hereafter be executed covering the Premises and the Land, or any renewals, modifications, consolidations, replacements or extensions thereof, for the full amount of all advances made or to be made thereunder and without regard to the time or character of such advances, together with interest thereon and subject to all the terms and provisions thereof. Tenant agrees, within thirty (30) days after Landlord's written requests therefor, to execute, acknowledge, and deliver any and all docurnents or instruments requested by Landlord, or that are necessary or proper to assure the subordination of this Agreement to any such mortgages, deeds oftrust, or leasehold estates; provided, however, that the foregoing provisions with respect to such election of subordination by Landlord shall not be effective unless the owner or holder of any such mortgage, deed of trust, or leasehold estate shall execute with Tenant a nondisturbance agreement under which such owner, holder, or lessor shall agree, in the event of termination of such leasehold estate or upon the foreclosure of any such mortgage or deed of trust, that Tenant's quiet enjoyment of the Premises will not be disturbed so long as Tenant pays rent and Packet Pg. 201
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
observes and perform all of the provisions of this Agreement to be observed and performed by Tenant. Notwithstanding anything to the contrary set forth in this section, Tenant hereby attorns and agrees to attorn to (at the option of) any person, firm, or corporation purchasing or otherwise acquiring the Premises at any sale or other proceeding or pursuant to the exercise of any other rights, powers, or remedies under such mortgages, or deeds of trust, or ground or underlying leases, as if such person, firm, or corporation had been named as Landlord herein.
24. Sale or Transfer bv Landlord. In the event of any transfer or transfers of Landlord's interest in the Premises, other than a transfer for security purposes only, the transferor shall automatically be relieved of any and all obligations and liabilities on the part of the Landlord accruing from and after the date of such transfer; provided, however, that any funds in the hands of Landlord in which Tenant has an interest, at the time of such transfer, shall be turned over to the transferee and upon such transfer, Landlord shall be discharged from any further liability with reference to such funds. The covenants and obligations of Landlord contained in this Agreement shall be binding upon Landlord, its successors and assigns only during their respective periods of ownership.
25. Surrender of Premises. At the expiration or earlier termination of the Term, Tenant shall surrender to Landlord the possession of the Premises. Surrender or removal of improvements, fixtures and trade fixtures shall be as directed in the provisions of this Agreement on ownership of improvements, fixtures and trade fixtures at expiration or termination of this Agreement. Except as provided in Section 13 hereof to the contrary, Tenant shall leave the surrendered property and any other property in good and broom clean condition. All personal property that Tenant is not required to surrender but that Tenant does abandon shall, at Landlord's election, become Landlord's property at expiration or the sooner termination of this Agreement.
26. Form of Nondiscrimination and Nonse~regation Clauses. The Tenant herein covenants by and for itself, its successors and assigns, and all persons claiming under or through it, and ths Agreement is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Premises nor shall the Tenant itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the Premises.
27. Holding Over. If Tenant remains in possession of the Premises or any part thereof after the expiration or termination of the Term of this Agreement, such occupancy shall be a tenancy from month to month upon all the provisions of this Agreement pertaining to the obligations of Packet Pg. 202
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
Tenant, except that the Percentage Rent shall be increased to ten percent (10%) of the Gross Revenues and the Percentage Rent shall be payable in arrears on a monthly basis, as otherwise set forth in Section 4.
28. Representations, Warranties and Acknowledyments. Tenant makes the following representations, warranties and acknowledgments as of the date of this Agreement and agrees that such representations, warranties and acknowledgments shall survive and continue thereafter:
a. Status. Tenant is a limited liability company, duly formed and validly existing and has all power and authority to perform the obligations contemplated hereby. Throughout the Term of this Agreement, Tenant shall be and remain a single-purpose, bankruptcy remote entity. b. Authoritv. Tenant has complied with all laws and regulations concerning its organization, existence and transaction of business. Tenant has the right and power to lease and operate the Project and Sports Park Improvements thereon as contemplated in this Agreement.
Tenant has, or at all appropriate times shall have properly obtained, all permits, licenses and approvals necessary to occupy and operate the Sports Park Improvements on the Land and in so doing has, or shall have (as appropriate), substantially complied with all applicable Statutes. c. No Litigation. There is no litigation, action, suit, or other proceeding pending or threatened against Tenant which may in any manner whatsoever substantially adversely affect the validity, priority, or enforceability of this Agreement or the construction, use, occupancy or operation of the Project.
d. Enforceability. Tenant has full right, power and authority to execute and deliver this Agreement and the Memorandum of Lease executed pursuant hereto, and to perform the undertakings of Tenant contained in this Agreement. This Agreement constitutes valid and binding obligations of Tenant which are legally enforceable in accordance with their terms, subject to the laws of bankruptcy, creditor's rights exceptions, and equity. e. IVo Breach. None of the undertakings of Tenant contained in this Agreement violates any applicable Statute or any order or ruling of any court, or conflicts with, or constitutes a breach or default under, any agreement by which Tenant is bound or regulated. f. Accuracy. To the best of Tenant's knowledge, all documents, reports, instruments, papers, data, information and forms of evidence delivered to Landlord by Tenant with respect to this Agreement are accurate and correct, are complete insofar as completeness may be necessary to give Landlord true and accurate knowledge of the subject matter thereof, and do not contain any material misrepresentation or omission.
g. Taxes. To the best of Tenant's knowledge, Tenant has filed all federal, state, county and municipal tax returns required to have been filed by Tenant, and has paid all taxes which Packet Pg. 203
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Spotts Park Lease
have become due pursuant to such returns or to any notice of assessment received by Tenant. Tenant has no knowledge of any basis for additional assessment with respect to such taxes.
29. Suecial Provisions.
a. City Use of Premises. Tenant agrees to make the Premises available to the Landlord four days each year for community activities. Such days shall be reasonably selected by Tenant and Landlord, which selection shall be based, among other factors, on space availability. The Landlord shall give Tenant at least three (3) months prior written notice of the date or dates it proposes for use of the Premises. On such dates (hereinafter "City Days"), the Premises shall be made available to Landlord free of charge, provided, however, all hourly (but not salaried) labor employed to service City Days activities shall be charged to the Landlord based on Tenant's actual cost. Food and beverages shall be sold to guests and invitees of Landlord at regular retail prices on City Days.
b. Pre-Opening Expenses. Tenant acknowledges that Tenant will be responsible for the initial capitalization of Tenant's business operations on the Premises and will be responsible for start-up expenses in connection with Tenant's business operations including, without limitation, hiring and training of employees, acquisition of inventory and pre-opening marketing expenses, including, but not limited to, those activities described in the Marketing Plan attached hereto as Exhibit 6.
c. Competing; Business. During the Term of this Agreement or, in the event this Agreement is terminated as a result of a default by Tenant or as a result of Tenant's surrender or abandonment of the Premises, for a period of thirty-five (35) years from the Term Commencement Date, whichever is longer, neither Tenant nor an Affiliate of Tenant, shall own, lease, or manage, nor license the use of the name "Big League Dreams" in connection with a competing sports park facility similar in nature and function to the Sports Park or any other sports park or sports facility located within a radius of one hundred and thirty (130) miles from the Sports Park. The cross hatched area shown on the attached Exhibit 7 (which exhibit is incorporated herein by this reference) graphically depicts this one hundred thirty (130) mile exclusion radius and the cities and counties included therein. The parties acknowledge that the entirety of Sacramento County is outside the 130 mile exclusion radius. The parties agree, whether or not the cities of Woodland (in Yolo County) and Roseville (in Placer County) are within the 130 mile exclusion radius, that such cities shall be deemed to be outside the 130 mile exclusion radius for purposes of this Agreement. In the event this Agreement is terminated by Landlord for reasons other than a default by Tenant or Tenant's surrender or abandonment of the Premises, or is terminated by Tenant as a result of a default by Landlord, the restrictions contained in this subsection (c) shall lapse on the effective date of such a termination of this Agreement.
d. Electrical Costs. During the Term, Landlord shall cause the City owned Packet Pg. 204
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
electrical utility (so long as it is owned by the City) to provide electricity to the Sports Park at a rate no higher than the lowest rate in effect at any given time for any other commercial or municipal user with comparable energy consumption.
e. Signage During the Term, Tenant shall permit Landlord to display one non-commercial, public interest sign per stadium replica field without payment of any advertising fees. Landlord shall, at its option, fabricate and provide the signs to Tenant according to specifications Tenant shall develop for advertising signs generally or reimburse Tenant for Tenant's actual costs in fabricating the signs for Landlord. Tenant shall not accept or display tobacco product or adult entertainment advertising in the Sports Park.
30. Hazardous Materials. Tenant shall not store, generate, treat, or dispose of any hazardous substances or hazardous waste, as defined in the California Health and Safety Code, on the Premises; provided, however, that Tenant is permitted to bring onto the Premises Hazardous Materials (defined below) contained in emergency back-up batteries, under the condition that Tenant will treat all such Hazardous Materials brought onto the Premises by it in accordance with all applicable federal, state, and local laws and regulations. a. Definition. Hazardous Materials are defined as follows:
1. Substances which are flammable, explosive, corrosive, radioactive, or toxic;
. .
11. Any material or substances defined as hazardous substances, hazardous materials, toxic substances, or hazardous wastes in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Sections 9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Sections 1801 et. seq.), the Resource Conservation and Recovery Act (42 U.S.C. Sections 6901 et seq.), the Hazardous Waste Control Act (California Health & Safety Code Sections 25100 et seq.), and the Hazardous Substance Account Act (California Health & Safety Code Sections 25300 et seq.), the California Hazardous Waste Management Act (California Health & Safety Code Sections 25 170.1, et seq.), California Health and Safety Code Section 25280, et seq. (Underground Storage of Hazardous Waste Management Act), California Health and Safety Code Section 2550, et seq. (Hazardous Materials Release Response Plans and Inventory), or the California Porter-Cologne Water Quality Control Act, Water Code Section 13000, et seq., and all amendments to these laws, and regulations adopted or publications promulgated pursuant to these laws;
iii. Those asbestos-containing materials defined and described in Environmental Protection Agency Report No. 5615-85-024 (June 1985) whether or not friable, or any related or successor report, or other applicable government regulations defining or describing such materials;
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
iv. Pesticides as defined by Section 136(u) of FIFRA (7 U.S.C. Section 136) as may be present in soil or groundwater;
v. "Hazardous wastes" as defined in Section 25 11 7 of the California Health and Safety Code, or as a chemical that is known to the State of California "to cause cancer or reproductive toxicity" under the Safe Drinking Water and Toxic Enforcement Action of 1986, California Health and Safety Code Sections 25249.5, et seq.; and vi. Hazardous materials, substances or waste, or toxic materials, substances or waste as those terms or similar terms are defined by any other federal, state, or local law or regulation or orders.
b. Tenant Indemnity. Tenant shall indemnify, protect, hold harmless, and defend the Landlord, its elected officials, officers, employees, agents, and volunteers from and against any and all liability, directly or indirectly arising from the use, generation, storage, or disposal of Hazardous Materials by Tenant, and (b) the cost of any required or necessary repair, cleanup, or detoxification and the preparation of any closure or other required plans, to the full extent that such liability is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of Hazardous Materials by Tenant, its officers, employees, agents and/or invitees on or with respect to the Premises after the Term Commencement Date. c. Landlord Indemnity. Landlord shall indemnify, protect, hold harmless, and defend the Tenant and its officers, directors, members and employees from and against any and all liability (including reasonable attorneys' fees), directly or indirectly arising from the use, generation, storage, or disposal of Hazardous Materials to the full extent that such liability is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of Hazardous Materials on or with respect to the Premises prior to the Term Commencement Date or from the actions ofthe Landlord or the Landlord's elected officials, officers, employees, agents, and volunteers that result in Hazardous Materials being brought to the Premises after the Term Commencement Date.
d. Tenant Release. Other than indemnity claims under subsection (c) above, Tenant releases the Landlord from any and all claims Tenant may have against the Landlord of whatever kind or nature resulting from or in any way connected with the environmental condition of the Premises, including any and all claims Tenant may have against the Landlord under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), or any other federal, state, or local law, whether statutory or common law, ordinance, or regulation pertaining to the release of Hazardous Materials into the environment from or at the Premises. Tenant expressly waives the benefits of Civil Code Section 1542, which provides as follows:
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
A general release does not extend to claims which the creditor does not know or expect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. e. Survival of Obligations. Tenant's and Landlord's obligations under this section shall survive termination or expiration of this Agreement. 3 1. Miscellaneous.
a. Governing; Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of California.
b. Time is of the Essence. Time is of the essence herein. c. Additional Rent. Any monetary obligations of Tenant to Landlord under the terms of this Agreement shall be deemed to be rent.
d. Quiet Eniovment. Upon Tenant's paying the Percentage Rent and other sums provided hereunder, and observing and performing all of the covenants, conditions, and provisions on Tenant's part to be observed and performed hereunder, Tenant shall enjoy the quiet possession of the Premises for the entire Term hereof, subject to all of the provisions of this Agreement. e. Waivers. The waiver by Landlord or Tenant of any breach by the other party of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition or any subsequent breach of the same or any other term, covenant, or condition herein contained. The subsequent acceptance of all or part of the rent due hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant, or condition ofthis Agreement, other than the failure to pay the particular rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent.
Acceptance by Landlord of a part payment of the rent or any other sum due shall not be construed as a waiver by Landlord of any rights to collect the balance of the rent due unless Landlord has executed a specific written waiver of the specific amount due on an instrument separate from the check by which the payment is tendered.
f. Brokers. Each party warrants to and for the benefit of the other that it has had no dealings with any real estate broker or other agent (attorneys excepted) in connection with the negotiation or making ofthis Agreement. Landlord shall indemnify Tenant for breaches by Landlord of this warranty, and Tenant shall indemnify Landlord for any breaches by Tenant of this warranty. g. Headings. The captions of the various sections of this Agreement are for convenience and ease of reference only and do not define, limit, augment, or describe the scope, contents, or intent of this Agreement or of any part or parts of this Agreement.
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) h. Inspection of Books and Records. Landlord shall have the right at all reasonable times to inspect the books and records of Tenant relevant to the purposes of this Agreement as provided in Section 4(d)(ii).
1. Merger. The voluntary or other surrender of this Agreement by Tenant, or a mutual cancellation thereof, or a termination by Landlord, shall not work a merger, but instead, at the option of Landlord, shall either terminate all or any existing subtenancies, or at the option of Landlord, operate as an assignment to Landlord of any or all of such subtenancies. j- Gender; Number. The neuter gender includes the feminine and masculine, the masculine includes the feminine and neuter, and the feminine includes the masculine and neuter, and each includes corporations, partnerships and other legal entities whenever the context so requires., The singular number includes the plural whenever the context so requires. k. No Joint Venture. Nothing contained herein shall be construed to render the Landlord in any way or for any purpose a partner, joint venturer, or associated in any relationship with Tenant other than that of Landlord and Tenant, nor shall this Agreement be construed to authorize either party to act as agent for the other, or to make Landlord in any way responsible for the liabilities, debts or losses of Tenant.
1. Exhibits. All exhibits to which reference is made in this Agreement are hereby incorporated by reference in full. Any reference to "this Agreement" includes matters incorporated by reference.
m. Entire Agreement; Modification. This Agreement contains the entire agreement between the parties. No verbal agreement or implied covenant shall be held to vary the provisions hereof, any statements, law or custom to the contrary notwithstanding. No promise, representation, warranty, or covenant not included in this Agreement has been or is relied on by either party. Each party has relied on its own inspection of the Premises and examination of this Agreement, the counsel of its own advisors, and the warranties, representations, and covenants in this Agreement itself. The failure or refusal of either party to inspect the Premises, to read this Agreement or other documents, or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention, or claim that might have been based on such reading, inspection, or advice. No provision of this Agreement may be amended or varied except by an agreement in writing signed by the parties hereto and the lender under a permitted first leasehold encumbrance or their respective permitted successors. n. Joint and Several Obligations. If more than one person or entity is Tenant herein, the obligations imposed on such parties shall be joint and several.
0. Severabilitv. The invalidity or illegality of any provision shall not affect the remainder of this Agreement and all remaining provisions shall, notwithstanding any such invalidity or illegality, continue in full force and effect.
p. Consents of Landlord. Neither Landlord's execution of this Agreement nor any consent or approval given by Landlord hereunder in its capacity as Landlord shall waive, Packet Pg. 208
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
abridge, impair or otherwise affect Landlord's powers and duties as a governmental body. Any requirements under this Agreement that Tenant obtain consents or approvals of Landlord are in addition to and not in lieu of any requirements of law that Tenant obtain approvals, licenses, or permits.
q. Recordation of Memorandum oflease. This Agreement shall not be recorded without Landlord's consent. A Memorandum of this Agreement shall be recorded in the Official Records of Shasta County, California, within thirty (30) days after the execution of this Agreement. r. Execution in Counterparts. This Agreement, or the Memorandum of this Agreement, or both, may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. s. Date of Ayreement. The date of this Agreement shall be the date it is signed by the Landlord.
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
IN WITNESS WHEREOF, the undersigned have executed this Agreement as ofthe date first written above.
LANDLORD:
CITY OF REDDING
Dated: B
ATTEST: APPROVED AS TO FORM:
By: 1 -c
- David E. Tranberg, ~wity Atto&
I -c By: - David E. Tranberg, ~wity Atto&
TENANT:
BIG LEAGUE DREAMS REDDING, LLC
By:
scot? Parks LeTellier
Chief Executive Officer
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STATE OF CALIFORNIA 1
1 SS
COUNTY OF Los Angeles )
On May 1 ,2001, before me, Carmelita E. Collins , aNotary Public in and for said State, personally appeared Scott Parks LeTellier Y- (or proved to me on the basis of satisfactory evidence) to be the person@ whose name@)-is&e subscribed to the within instrument and acknowledged to me that he&dtI$y executed the same in his- authorized capacity@$), and that by his- signature0 on the instrument, the person& or the entity upon behalf of which the person@ acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public
STATE OF CALIFORNIA )
1 SS
COUNTY OF )
On ,200 1, before me, , a Notary Public in and for
said State, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose narne(s) islare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in hisherltheir authorized capacity(ies), and that by hisherltheir signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) EXHIBIT 1
PLOT PLAN OF LAND
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EXHIBIT 2
PROJECT DESCRIPTION
The Big League Dreams Redding Sports Park will be a world-class facility featuring unique Big League Dreams state-of-the-art themes and design features, and will be a destination park, attracting tournament teams (youth and adult) from all over the country. First and foremost, however, it will provide local families with a spectacular family entertainment value. The City of Redding will be adding significant tourism while enhancing its reputation as a stable, family-friendly city.
The Redding Big League Dreams facility would contain the following elements, all constructed to a first class standard with high quality building materials:
1. Three youth baseballladult softball major league stadium replicas.
2. Two additional youth baseballladult softball minor league (i.e. non-replica) fields, one of which may be designed to accommodate adult regulation baseball as well.
3. A nine-station batting cage combined with an instructional academy area.
4. One or more covered 20,000 square foot multi-sport pavilion(s), designed to accommodate inline hockey, basketball, indoor soccer, indoor volleyball, and corporate and special events.
5. Four sandheach volleyball courts.
6. Two playgrounds and picnic area.
7. The Stadium Club--a food and beverage (both alcoholic and non-alcoholic) family-style sports restaurant, designed and operated to attract and accommodate league, tournament, and corporate users.
8. An additional concession/patio facility to the minor league fields.
9. Parking for 400 automobiles.
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
EXHIBIT 3
SPORTS PARK PROJECT BUDGET
Property Acquisition
Professional Services, including EIR, Design, Permits,
Inspections and BLD Contracts
Site Infrastructure
Construction Grading and Drainage
Project Allowances:
Lighting $275,000
Pavilion $340,000
FF&E $250,000
Contingency - 10%
TOTAL
$784,000
$1,65 1,000
$800,000
$6,180,000
$865,000
$720,000
$1 1,000,000
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Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams h,Jding Sports Park Lease
EXHIBIT 4
MITIGATION MEASURES
Impact
Impact 4.3.2 The project
would introduce new sources
of light and glare in the
vicinity of the project site.
Impact 4.8.2 Contaminants
from the project site may
enter surface and ground
waters.
Impact 4.9.1 The project
would generate noise
associated with sports
activities
Mitigation Measure
MM 4.3.2b All events at the Sports Complex shall be scheduled so that all activity is completed before or as near to 10:30 p.m. as practicable, but under no circumstances shall any illumination of the playing fields be permitted after 11:OO p.m., except to conclude a scheduled event that was in progress before 1 1:00 p.m. and circumstances prevented conclusion of the event before 11:OO p.m.
Tirning/Implementation: Upon commencement ofproject operations.
MM 4.3.2~ Lighting of parking lots at the Sports Complex shall consist of low-pressure sodium lamps. Lighting poles used in parking lots shall be no taller than 25 feet in height. Parking lots shall remain lighted no later than 30 minutes after the conclusion of a scheduled event, but should cease as close to 1 1 :00 p.m. as practicable.
Timing/Implementation: Upon commencement ofproject operations.
MM 4.8.2a Fertilizer used shall be of the slow release form, or the proper chemical release for the soil textural class and infiltration rate, or a more soluble type applied as a solution. Fertilization rates shall be applied so that nutrients will not leach below the root zone.
Timing/Implementation: Upon installation and maintenance of sports fields.
MM 4.8.2b Herbicides may only be applied with selective equipment such as recirculating spray systems, shielded applicators or wiper applicators. Application rates shall not exceed specific rates of application and instructions for control of the specific problem weed as recommended by the manufacturer.
Timing/Implementation: Upon installation and maintenance of sports fields.
MM 4.8.2~ Irrigation rates shall not exceed 90 percent of the infiltration rate for each soil type and turf management combination. Irrigation shall be timed to correspond with fertilizer and herbicide application as recommended by the chemical manufacturers.
Timing/Implementation: Upon installation and maintenance of sports$elds.
MM4.9.lb Nighttime soccer games and practices (those occurring after 10:OO p.m.) should be conducted on the fields which are farthest from the nearest residential property lines. The center of the soccer field used during nighttime hours would need to be setback approximately 300 feet from the nearest residences.
[This setback assumes that the playing field would also be shielded from view of those residences by the intervening 6-foot tall berm described in MM4.9.lal Timing/lmplementation: Upon commencement ofproject operations.
Packet Pg. 215
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
Impact 4.9.4 Public address
systems installed at the
sports fields could generate
noise that disturbs nearby
residents.
MM 4.9.4a Regardless of when events are terminated at the soccer, baseball, and softball fields, the PA system shall be designed so as to produce the minimum possible noise levels at the nearest existing residential areas. If sporting events are to be concluded prior to 10:OO p.m., the PA system installed at the stadium shall be designed and tested so as not to exceed an average noise level of 50 dB Leq at the nearest residential property lines. If such events are to be concluded after 10:OO p.m., the PA systems shall be designed and tested so as not to exceed average noise levels of 40 dB at the nearest residential property lines. These levels include a 5 dB penalty for annoyance associated with speech. In recognition of Regional and Tournament play, the 50 dB Leq may be used past 10:OO p.m. for one three-day event each year.
Timing/Implementation: Upon commencement ofproject operations.
Packet Pg. 216
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) EXHIBIT 5
FURNISHINGS. FIXTURES AND EQUIPMENT
Some of the Kitchen/Concession FF&E will be provided as per the Plans and Specifications and shall include smallwares, storage shelving, safes, and point-of-sale systems.
A. Restaurant - Building A
B. Office
# Ea.
5 12
26 110
1 3
1 1
# Ea.
15 12
27 1
3 6
1 Description
Booths
Booth Stools
Swivel Bar Stools
Arm Chairs
ATM Machine
60" Television Sets
Wall Clock
Baby Changing Counter
Window LouversIShades
Description
30" x 49" Tables
30" x 30" Tables
Table Base
Credit Card Machine
Menu BoardJSigns
36" Television Sets
Music and P.A. Systems
Decorative Flags
ArtlGraphics
# Ea.
2 15
2 # Ea.
1 2
1 1
1 Description
Copy Machines
Computers
Fax Machines
Desks, Chairs as needed
Filing Cabinets as needed
Storage Cabinets
Description
Credit Card Machine
Printers
Safe
Conference Table, chairs
P.A./Music System
Waste Baskets
Packet Pg. 217
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) C. CorporateISpecial Event
D. Batting; Cage
# Ea.
500
3 1
3 E. Retail
Description
Chairs
Portable Bars
20' x 20' Party Tent
Portable Food Warmers
# -
Ea.
1 1
15 F. Maintenance
# Ea.
5 0
3 0
2 3
Description
Complete Master Pitch
Equipment Package
Change Machine
Helmets
# Ea.
1 15
120
# Ea.
1 1
Description
Tables
Baseball Gloves
10' x 10' Party Tents
Portable Barbecues
Descri~tion
Repair Kit/Parts
Bats
Dozen Balls
Description
Point-of-Sale System
Counter/Fixtures
Storage Racks
# Ea.
1 1
1 1
1 # Ea.
1 # Ea.
1 1
1 1
1 Description
Gang Mower
Toro #3 100 Vehicle
John Deere Groomer
Sweeper
Aerator
Description
ComputerPrinter
Display Shelves
Description
Triplex Mower
Verti-Drain
Front-Load Tractor
Sodcutter
Topdresser
Packet Pg. 218
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Golf CartsRJtility Beds
Toro 22" Mower
Backpack Blowers
Rotary Spreader
Wheelbarrows
Chemical Sprayer
Weedeaters
Leaf Rakes
Pointed Shovels
6" Trenching Shovels
50' Hoses
Weed Hoes
Tree Pruner
Power Chain Saw
Hand Pump
Easy-outs, assorted
PSI Guage
-
2.5 Gallon Gas Cans
Meld Drags
Batters Box Frames
400' String Reels
114 " Portable Drill
4 %I1 Grinder
Impact Wrench Set
Pliers/Tools, assorted
Electric Pump
Trash Receptacles, asst.
4 1
2 1
2 1
3 4
4 2
4 2
1 1
1 1
4 2
2 2
1 1
1 1
1 1
2 1
1 2
1 4
4 2
4 2
1 2
1 2
5 2
2 2
1 1
1 1
4 2
Fertilizer Spreader
Floor Scrubber
McClane Edgers
Drop Spreader
Pressure Washer
Roto Tiller
Landscape Rakes
Square-Nosed Shovels
Large Shovels
24" Push Brooms
Regular Brooms
Pole Pruner
Tree Hand Saws
Pitch Fork
Wrenches, assorted
Pipe Saws
Quick Coupler Keys
Nail Drags
Chalkers
100' Tapes
%I1 Electric Hammer
Tool Box
7" Power Saw
Electric Multi-Tester
Extension Cords
Vacuum Cleaners
Packet Pg. 219
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) G. Sports
6 1
H. Miscellaneous
Hand-Held Radios
Spray Rig
# Ea.
6 4
7 23
90 1
2 4
1 1
Description
Soccer Goals, as per plans
Basketballs
Volleyball NetsPoles
2500' Sportfence
Pitching Rubbers
single Bases
Base Mounts
Portable P.A. System
Electric Basketball Scoreboards
Bulletin Boards
Backstop Netting, as per plans
Video Camera
# Ea.
1 8
1 Storage Shelves, asst.
Welding Equipment
# Ea.
2 4
7 7
9 14
6 10
6 1
Description
Playground Equipment, as per
plans
Picnic Tables
Parking Netting, as per plans
Fan Shade Nets, as per plans
Security System
Ash Trays/Urns
Telephone and Voicemail Systems
Description
Hockey Goals
Basketball BackboardsIGoals
Home Plates
Portable Mounds
Double Bases
BatRacks
Electric Baseball Scoreboards
Scoreboard Controllers
Player Benches, as per plans
Portable Bleachers, as per plans
VCR Player
# Ea.
1 1
2 Description
Safety Netting, as per plans
Drinking Fountains, as per plans
Entry Turnstile
Bike Rack
Mist System, as per plans
Instruction School Equipment
Packet Pg. 220
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) EXHIBIT 6
BIG LEAGUE DREAMS REDDING
MARKETING PLAN
INTRODUCTION
BIG LEAGUE DREAMS OF REDDING will launch an aggressive marketing campaign ninety (90) days prior to the projected opening of the facility in Summer 2002. This aggressive marketing campaign will intensify as the park's opening approaches. Marketing Plan progress reports will be submitted to the City on a quarterly basis during calendar year 2002 beginning January 1,2002. Six areas that require special attention in terms of marketing are the grand openingldedication, team sports, food and beverage, company picnics, speciaI events and tournaments. This plan discusses the goals for the various areas and a plan of action to reach those goals. The plan also discusses the marketing tools required to execute the marketing campaign.
GOALS
A. Facility
1. Become the local center for adult and youth team sports, recreation and active recreation through:
a. Public awareness
b. Customer satisfaction through well-managed programs
c. Establishing and maintaining relationships with the
(1) Business community
(2) Local media
(3) City of Redding
B. League S~orts
1. 100 softball teams by the third quarter of 2003
2. 20 volleyball teams by the third quarter of 2003
3. 20 basketball teams
4. 25 indoor soccer teams
5. 1 2 inline hockey teams
C. Tournaments
1. 10 tournaments in 2002, and 27 tournaments in 2003
Packet Pg. 221
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
2. Showcase BIG LEAGUE DREAMS OF REDDnVG for regional and national exposure
D. Food and Beverage
1. High quality at reasonable prices
2. Achieve $4 per person spending on food and beverages E. Company Picnics and Special Events
1. 750 participants in company picnics in 2003
2. Three special events in 2002, and six special events in 2003 F. Billboards, Scoreboards and Commissions
1. Promote and sell advertising space on billboards, scoreboards and banners
2. Sell advertising space on admission tickets
3. Establish relationship with local hotels for out-of-town tournament players G. Communications
1. Gain public awareness and familiarity
2. Keep community informed of BIG LEAGUE DREAMS OF REDDING activities
ACTION PLAN
Grand Opening: Dedication
The grand openingldedication is projected to be held in Summer 2002. BIG LEAGUE DREAMS OF REDDING will work closely with the City of Redding in the planning of the grand opening1 dedication. Invitations will be sent to Redding City officials, local media, community leaders, contractors, and future customers. The grand openingldedication is an excellent opportunity to increase public awareness.
A. How and where it will be promoted:
1. Press releases
a. Print, local newspapers
b. Broadcast media
(1) Local radio stations
(2) Local television stations
2. Signs
a. Displayed at local businesses
b. Posted throughout the local area
3. Direct Mail
a. Invitations to existing Redding teams
b. Invitations to various Redding City officials and community leaders Packet Pg. 222
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
4. Advertising Specialties
a. Promotional items printed with BIG LEAGUE DREAMS OF REDDING logo
5. Complimentary BBQ
6. Novelty ActsRinishing Touches
a. Clowns for the children
b. Colorful streamers, balloons
c. Create a festive atmosphere
d. Sports personalities
League Sports
League sports form the foundation for BIG LEAGUE DREAMS OF REDDING. Adult and youth softball, youth baseball, volleyball, indoor soccer, inline hockey, flag football and basketball are the sports that are offered. Generating interest in BIG LEAGUE DREAMS OF REDDING and its leagues will be accomplished by making sales calls to companies in the area.
Smooth running, competitive, yet fun leagues will encourage participation. Marketing to expand league participation is the best way to create success and profitability for BIG LEAGUE DREAMS OF REDDING. Each of the existing Redding teams will be contacted well in advance of each ten-week season.
A. How and where they will be promoted:
1. Sales calls to
a. Companies within a 25-minute drive
b. Existing leagues at other locations
c. Local churches
d. Community organizations
e. Residential and apartment complexes
2. Advertising/Promotion
a. Local area newspapers
b. Direct mail to existing Redding league presidents
c. Flyers and brochures
d. Trade show displays
e. Redding Big League Dreams Newsletter
f. Promotional materials at local businesses
3. Word-of-Mouth
a. Primary source of add.itiona1 customers
4. Redding Big League Dreams Newsletter (periodically)
Packet Pg. 223
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
B. Marketing to be accomplished:
1. 3-4 weeks prior to an upcoming season
2. In the morning at companies
3. In the morning at churches
4. At community organizations as required
5. In the evenings to leagues at other facilities
6. By the marketing director and program staff
Food and Beverage
Food and beverage is a vital part of the BIG LEAGUE DREAMS OF REDDING operation. It will be important that menu items are of high quality, convenient and reasonably priced. Pricing, presentation, and merchandising are all keys to successfully marketing food and beverage.
A. How and where they will be promoted:
1. Word of mouth
2. Signs
3. Value packaging
4. Section in each newsletter
5. Kid's meal
6. "Specials" menu
7. Coupons
8. Menu Board
9. Entrance FeeIToken Plan
B. Marketing to be accomplished:
1. Throughout the year
2. By the concession manager, marketing director and general manager
3. Concession employees will be trained to be marketing-minded Tournaments
Tournaments are planned for weekends throughout the year. They are a great opportunity to showcase BIG LEAGUE DREAMS OF REDDING. A goal of 10 tournaments has been set for Redding in 2002, and 27 in 2003. Area, regional and national tournaments will be pursued. The programming director has the primary responsibility for scheduling tournaments. The marketing director will assist in establishing the tournament schedule in addition to other marketing related functions.
A. Sources:
1. Local, state and national sports organizations
2. Independent tournament promoters
3. Advertising in sports industry journals
Packet Pg. 224
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
4. Corporate tournaments
B. When and by whom the marketing will be done:
1. Throughout the year
2. Emphasis 2 to 3 weeks prior to the tournament
3. General Manager and Sports Director
Cornpanv PicnicsICor~orate Outinys
BIG LEAGUE DREAMS OF REDDING is available for company picnics and corporate outings during times other than scheduled league play. It is a great way to expose BIG LEAGUE DREAMS OF REDDING to potential customers who may not otherwise be familiar with BIG LEAGUE DREAMS OF REDDING. Some of the activities offered for corporate outings are softball, volleyball, basketball, batting cages, dunk tank, jumping castle, clowns, carnival games, and much more.
A. How and where they will be promoted:
1. Sales calls
a. Medium to large companies
b. Local associations
c. Meeting planners
d. Marketing and sales directors (of larger hotels/motels) e. Industry associations (SDIRC)
f. Redding Convention and Visitors Bureau
2. AdvertisingPromotion
a. Brochure
b. Video
c. Direct mail, follow up
d. Trade show displays
3. Referrals and word of mouth
B. When and by whom the marketing will be done:
1. Weekly
2. Park Sales Director
3. General Manager
Special Events
Packet Pg. 225
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Special events generally take place on weekends throughout the year. They are an opportunity for increased community involvement. These events can be Fourth of July parties, Easter sunrise services, concerts, carnivals, corporate challenges, and City of Redding sponsored events. Staff capabilities and the facility attractions will make this a venue in demand by event promoters.
Billboards, Scoreboards and Commissions
Billboards will be available for rental on all of the softball fields. There will be sponsorship space available in all element locations. Space will be available for sponsors in the center of each of the three outfield scoreboards. Three locations will be available to the City of Redding for public-service messages. When on sales calls, the Park Sales director will explore a company's interest in advertising at BIG LEAGUE DREAMS OF REDDING. Commissions come from agreements worked out with local hotels. A commission for BIG LEAGUE DREAMS OF REDDING and a guaranteed room rate for tournament players will be set on an annual basis with host hotels.
Communications
Communications are important, especially in our first year of operation. BIG LEAGUE DREAMS OF REDDING will communicate with the public in numerous ways. A newsletter will be sent to players periodically keeping them informed of the latest BIG LEAGUE DREAMS OF REDDING programs. Flyers covering all the important information (dates, fees, deadlines, park policies, etc.) will be posted and sent out initially to each player and thereafter to each manager. Timely press releases will keep players up-to-date on leagues, free-agent tryouts, umpire clinics, etc. Newspaper articles and stories will cover many of our events. Cable television will be explored as a possible means of communication.
CONCLUSION
The first-year marketing campaign for BIG LEAGUE DREAMS OF REDDIIVG will require a concerted effort to reach the goals discussed in the marketing plan. It is important that the right marketing tools be chosen. Printed promotional materials reflecting the high standards of BIG LEAGUE DREAMS OF REDDING will be a valuable tool for the marketing campaign, as will a professionally produced video presentation.
The importance of the sales call can't be overstated. It is the single most important function of the marketing director. The direct mail program is also important. To implement Packet Pg. 226
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) communication, an accurate and up-to-date database will be maintained. A contact manager will provide tracking of prospects. Use of media advertising requires careful analysis to ensure that the marketing budget is effective.
Packet Pg. 227
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA) Big League Dreams Redding Sports Park Lease
EXHIBIT 7
DEPICTION OF TERRITORIAL RESTRICTIONS
Packet Pg. 228
Attachment: 2001 BLD Sports Park Lease (C-0458) (4.6(c)--Consideration of Letter of Agreement with Big League Dreams USA)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve increases to the project budget in the amount of $ 150,000 for the completion of Bid Schedule No. 5 222, Redding Aquatic Center 50 Meter Pool Improvement Project as outlined below for additional improvements:
(1) Increase of $ 20,000 to the construction management budget, bringing the construction management total to $138,000; and
(2) Increase of $ 130,000 to the construction contingency budget, bringing the construction contingency total to $240,000.
Fiscal Impact
The Redding Aquatic Center 50-meter Pool Improvement Project is being funded by the General Fund. The proposed $150,000 increase in funding is available in the existing allocation for the project in the Parks Division Budget . The total project cost, including the proposed increase, is expected to be $1,950,000.
Alternative Action
The City Council (Council) may choose to reject the request and provide alternative direction to staff.
Background/Analysis
On November 2, 2021, the Council awarded the construct ion contract for the project to Western Water Features, Inc. The project includes the removal of the existing 50 -meter pool plaster and tile, as well as the removal of the activity pool water slide.
MEETING DATE: February 21, 2023
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(a)--Approve Increase to Project Budget for the Redding Aquatic Center 50 Meter Pool Improvement Project
Chuck Aukland, Public
Works Director
Packet Pg. 229
Report to Redding City Council February 15, 2023
Re: 4.11(a)--Approve Increase to Project Budget for Redding Aquatic Center 50 Meter Improvement Project Page 2
During the course of construction, conditions in the field warranted design revisions to meet the original project intent. After the resurfacing of the 50 -meter pool was completed, the water -stop in the expansion joint failed. The pool is leaking a s ignificant amount of water and will continue to do so until it is repaired . The consultant design team recommends replacing th e expansion joint with a poured -in place repair. The scope of work for this repair includes the following :
providing daily moisture conditioning to the new plaster finish, saw -cutting the old expansion joint (approximately 40” wide by 95 feet), remov ing and dispos ing of concrete, placement of dowel in new rebar, using shotcrete in new concrete section, til ing of new section s to match existing sections, repair ing any damaged plaster areas (i f needed), and finally filling and balancing the pool. The noted changes will result in the contract bid item exceeding the bid quantity and the additional time needed will increase the construction management services required.
The additional work will cause the project budget to exceed the awarded amounts. An additional $150,000 is requested to cover increases to the construction contingency ($130,000) and construction management ($20,000) project components.
COST SUMMARY
Item Awarded Amount Projected Amount Increase
Contract Administration,
Inspection, Testing
$118,000 $138,000 $20,000
Construction Contingency $110,000 $240,000 $130,000
Revised Totals $228,000 $378,000 $150,000
Environmental Review
This action is not a project as defined by t he California Environmental Quality Act (CEQA) Guidelines, and no further action is required. On November 2, 2021, the Council determined that the Redding Aquatic Center 50 -Meter Pool Improvement Project is categorically exempt from review under the CEQA Guidelines, per Section 15301(d) – Existing Facilities.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
Previous Staff Report 11-2-21
Packet Pg. 230
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Bid Schedule No. 522 2 (Job No. 7336) Redding Aquatic Center 50 Meter Pool Improvements Project:
(1) Award to Western Water Features, Inc. in the amount of $908,765; (2) Approve an additional $118,000 to cover the cost of administration and inspection fees; and $50,000 for project development costs;
(3) Approve $110,000 to provide construction contingency funding; (4) Authorize the City Manager to approve additional increases in eit her the construction management or construction contingency amounts up to a total of $15,000; and (5) Find that the Project is categorically exempt from the California Environmental Quality Act per Section 15301(d) - Existing Facilities.
Fiscal Impact
The Redding Aquatic Center 50 Meter Pool Improvement Project (Project) is being funded by the General Fund.
Cost Summary
Item Estimated
Project Development Costs $50,000
Construction Contract + Contingency $1,018,765
Contract Administration, Inspection, Testing $118,000
Additional City Manager Authority $15,000
Total Project Costs $1,201,765
Project Budget $1,800,000
Project cost components are estimates and some shifting of the project development, construction management, and construction contin gency funds may be necessary to balance the MEETING DATE: November 2, 2021
ITEM NO. 4.11(g)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(g)--Award Bid Schedule No. 5222 (Job No. 7336) Redding Aquatic Center 50 Meter Pool Improvements
Chuck Aukland, Public
Works Director
Packet Pg. 231
Attachment: Previous Staff Report 11-2-21 (4.11(a)--Approve Increase to Project Budget for Redding Aquatic Center 50 Meter Improvement Report to Redding City Council October 25, 2021
Re: 4.11(g)--Award BS No. 5222, Redding Aquatic Center 50 Meter Pool Page 2
project within the approved budget.
Alternative Action
The City Council (Council) could choose not to award the bid for the Redding Aquatic Center 50 Meter Pool Improvement Project and provide staff with altern ate direction. If the project is not awarded, the 50-meter pool at the Aquatic Center, as well as the waterslide at the activity pool, will have ongoing maintenance and be in jeopardy of failing.
Background/Analysis
Attached is a tabulation of bids rece ived and opened on October 14, 202 1, for the Redding Aquatic Center 50 Meter Pool Improvement Project. The low bid in the amount of $ 908,765 was received from Western Water Features , Inc., of El Dorado Hills , California. The engineer's estimate was $ 1,100,000. Total project development costs for this project are estimated to be $50,000. Project development costs include engineering, surveying, right-of-way, environmental, consultant services, and permit fees. There is $1,800,000 budgeted for the total project.
This project includes the removal of the existing 50-meter pool plaster and tile, in addition to the removal of the activity pool water slide. The project will install new plaster, tile, activity pool water slide, and complete water slide refurbishment.
Staff has determined that the project qualifies as Categorically Exempt from environmental review under California Environmental Qual ity Act Guidelines Section 15301 . The project area does not have significant values for wildlife habitat or other envi ronmental resources, and the project has no potential to have a significant effect on the environment.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
Bid Tabulation
Location Map
Notice of Exemption
Packet Pg. 232
Attachment: Previous Staff Report 11-2-21 (4.11(a)--Approve Increase to Project Budget for Redding Aquatic Center 50 Meter Improvement
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve and find that the purchase of Assessor’s Parcel Number 050-500-026 (Parcel) from J.F.
Shea Co., Inc ., related to the Westside Sewer Interceptor Project (Project) for the Wastewater Utility (C -9661), is categorically exempt from review under the California Environmental Quality Act Guidelines, per Section 15317 - Open Space Contracts or Easements and Section 15325(f) - Transfers of Ownership of Interest in Land to Preserve Existing Conditions.
Fiscal Impact
As the purchase of the parcel has been approved, and t he $6,000 required for the acquisition of and associated escrow fees will be funded through the Wastewater Utility Fund, there is no fiscal impact with this action.
Alternative Action
The City Council (Council) could direct staff to find alternate California Environmental Quality Act (CEQA) exemptions, or provide alternative actions to meet CEQA compliance.
Background/Analysis
At its regular meeting on February 25, 2022 , the City Council (Council) approved the Westside Sewer Interceptor Project (Project) for the City of Redding Waste water Utility and adopted a Mitigated Negative Declaration. The project consists of constructing 4,200 feet of a new 48 -inch diameter sewer pipeline to provide additio nal capacity to the Clear Creek Wastewater Treatment Plant. The cost of the project is estimated at approximately $8,000,000 and will be funded by the Wastewater Utility.
MEETING DATE: February 21, 2023
ITEM NO. 4.11(b)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(b)--CEQA Categorical Exemption for Purchase and Sale Agreement with J.F. Shea Co., Inc. for APN 050-500-026
Chuck Aukland, Public
Works Director
Packet Pg. 233
Report to Redding City Council February 15, 2023
Re: 4.11(b)--Categorical Exemption for the Purchase of APN 050-500-026 Page 2
In order to complete the project, a 40-foot-wide permanent public service easemen t and a temporary 64-foot-wide Temporary Construction Easement across a privately -owned parcel of land at 7575 Platinum Way (Parcel), identified as Assessor Parcel No. 050-500-026, are needed to be acquired . The parcel is adjacent to the Sacramento River and unsuitable for development but could provide for an extended trail connection to Cascade Park. This Cascade Park perimeter trail is used frequently by many neighbors.
Staff recommended to the Council at a closed session meeting on September 6, 2022 , that the Council authorize staff and the property negotiator to make the initial Government Code Offer for the entire parcel at its appraised amount of $6,000 and authorized the Mayor to execute all necessary documents.
Environmental Review
Staff has det ermined that the action is categorically exempt from review under CEQA Guidelines, per Section 15317 - Open Space Contracts or Easements and Section 15325 (f) - Transfers of Ownership of Interest in Land to Preserve Existing Conditions. Class 17 exemptions include the acceptance of easements or fee interest in order to maintain the open space character of an area. Class 25 exemptions consist of the transfers of ownership of interests in land in order to preserve open space, habitat, or historical resources. The parcel lies wholly within the flood zone and will be zoned as Open Space. Maintaining the area in its natural state will protect the underlying environmental resource and wildlife habitat values of the property. The action has no potential to have a significant effect on the environment.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
^Exhibit
^Notice of Exemption (unfiled)
Purchase and Sales Agreement (C-9661)
Packet Pg. 234
Packet Pg. 235
Attachment: ^Exhibit (4.11(b)--Categorical Exemption for the Purchase of APN 050-500-026) Packet Pg. 236
Attachment: ^Notice of Exemption (unfiled) (4.11(b)--Categorical Exemption for the Purchase of APN 050-500-026) Packet Pg. 237
Attachment: Purchase and Sales Agreement (C-9661) (4.11(b)--Categorical Exemption for the Purchase of APN 050-500-026) Packet Pg. 238
Attachment: Purchase and Sales Agreement (C-9661) (4.11(b)--Categorical Exemption for the Purchase of APN 050-500-026) Packet Pg. 239
Attachment: Purchase and Sales Agreement (C-9661) (4.11(b)--Categorical Exemption for the Purchase of APN 050-500-026) Packet Pg. 240
Attachment: Purchase and Sales Agreement (C-9661) (4.11(b)--Categorical Exemption for the Purchase of APN 050-500-026) Packet Pg. 241
Attachment: Purchase and Sales Agreement (C-9661) (4.11(b)--Categorical Exemption for the Purchase of APN 050-500-026) Packet Pg. 242
Attachment: Purchase and Sales Agreement (C-9661) (4.11(b)--Categorical Exemption for the Purchase of APN 050-500-026) Packet Pg. 243
Attachment: Purchase and Sales Agreement (C-9661) (4.11(b)--Categorical Exemption for the Purchase of APN 050-500-026)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve and award Bid Schedule No. 5347 , for the purchase of Cisco Water System Network Equipment, to Key Code Media for a total cost not to exceed $ 202,023.58, for the City of Redding Water Utility.
Fiscal Impact
The Water Util ity has sufficient funds available in the approved Fiscal Year 2022 -23 budget for this purchase.
Alternative Action
The City Council (Council) could choose not to approve the purchase and provide alternative direction to staff. This alternative will dela y implementation of the system improvements and increase the vulnerability to cyber-attacks, as well as potentially lead to system downtime and the potential for public health, safety, and regulatory impacts.
Background/Analysis
On December 6, 2022, the City Council authorized the sole-source purchase of Cisco networking equipment to update the network/communication systems that have been installed over the last 30 years. The current network system allows water treatment facilities, water storage reservo irs, groundwater wells, pump stations, and more to communicate via various types of radio telemetry and wide area network systems.
The Cisco equipment to be purchased is the most reliable and supported network equipment available for the system and includes routers, ethernet switches, and firewalls, and the associated licensing software and support services. The new equipment will address potential cybersecurity risks that were identified in the 2020 Risk and Resilience Assessment (RRA) performed by the MEETING DATE: February 21, 2023
ITEM NO. 4.11(d)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(d)--Award Bid Schedule No. 5347 for the Purchase of Cisco Water System Network Equipment
Chuck Aukland, Public
Works Director
Packet Pg. 244
Report to Redding City Council February 15, 2023
Re: 4.11(d)--Award Bid Schedule No. 5347, Water System Network Equipment Page 2
Water Utility. Cybersecurity objectives identified in the RRA were designed into the new communication/networking system and will be implemented with this new equipment.
Seven bid opportunity notices were distributed to potential vendors, in addition to posting the bid on the City’s website. The lone bid in the amount of $202,023.58 was received from Key Code Media, of Burbank, California.
Environmental Review
This action is not a project as defined by the California Environmental Quality Act (CEQA), and no further action is required. On December 6, 2022, the Council determined the project was exempt from review under the CEQA Guidelines, per Section 15301 – Existing Facilities.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
^Bid Tabulation Cisco Water Network Equipment
Previous Staff Report 12-06-22
Packet Pg. 245
CITY OF REDDING
PURCHASING DIVISION - BID TABULATION
CISCO WATER COMMUNICATION EQUIPMENT
BID DATE OF OPENING
5347 WEDNESDAY, FEBRUARY 08, 22023
LEWIS TIME OF OPENING
AUKLAND 3:00 P.M.
QTY UNIT PRICE EXT PRICE UNIT PRICE EXT PRICE UNIT PRICE UNIT PRICE 49 $2,681.22 $131,379.78 $0.00 $0.00
36 $749.71 $26,989.56 $0.00 $0.00
33 $636.60 $21,007.80 $0.00 $0.00
33 $50.92 $1,680.36 $0.00 $0.00
4 $299.33 $1,197.32 $0.00 $0.00
2 $2,681.22 $5,362.44 $0.00 $0.00
1 $749.71 $749.71 $0.00 $0.00
$188,366.97 $0.00 $0.00
$13,656.61
$202,023.58
IR1101Series DIN-rail Mounting Clip
Expansion module for dual active LTE and SFP
IR1101 Rugged Series Integrated Services Router,
Advantage Software License
GRAND TOTAL
Catalyst IE3300 Rugged Series Managed L2 Ethernet
Swtich, 8 RJ-45 Ports, 2-10G SFP Ports
120 days
DESCRIPTION
Catalyst IE3300 Rugged Series Managed L2 Ethernet
Swtich, 8 RJ-45 Ports, 2-10G SFP Ports
Key Code Media
LEAD TIME
IR1101 Rugged Series Integrated Services Router,
Advantage Software License
IR1101 Series LTE Expansion Module, Verizon
SALES TAX
SUBTOTAL
A. Edenburn, Purchasing Div.
Packet Pg. 246
Attachment: ^Bid Tabulation Cisco Water Network Equipment (4.11(d)--Award Bid Schedule No. 5347,
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to sole -source procurement of equipment for the City of Redding Water Utility:
(1) Approve networking equipment from Cisco and Palo Alto in an amount not to exceed $450,000 for Fiscal Year 2022-23 to include system routers, ethernet switches, firewalls, and other network equipment and their associated licensing software and support service ; and
(2) Find that the action is exempt from review under the California Environmental Quality Act Guidelines, per Section 15301 – Existing Facilities.
Fiscal Impact
There are adequate funds in the Fiscal Year 2022 -23 Water Utility budget for the $450,000 purchase of equipment. Funding this purchase will not impact other activities.
Alternative Action
The City Council (Council) may choose not to authorize the purchase of network equipment directly from Cisco and Palo Alto and instead request quotes and award the various items through the standard competitive procurement process . This alternative may result in multiple manufacturers that are not compatible with the necessary equipment for the City’s water system network design nor meet the City of Redding ’s (City) Information Technology (IT) Department’s standard requirements to properly function with existi ng equipment. The Council may also provide alternative direction to staff.
MEETING DATE: December 6, 2022
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(a)--Authorize Sole -Source Purchase of Network Equipment for the Public Works Department
Chuck Aukland, Public
Works Director
Packet Pg. 247
Attachment: Previous Staff Report 12-06-22 (4.11(d)--Award Bid Schedule No. 5347, Water System Network Equipment) Report to Redding City Council November 29, 2022
Re: 4.11(a)--Authorize Sole-Source Purchase of Network Equipment Page 2
Background/Analysis
In March 2021, the City ’s Water Utility contracted with communications consultants , TJCAA/JEGO Systems, to standardize and redesign the network/communication systems installed over the last 30 years . The current network system allows water treatment facilities, water storage reservoirs, groundwater wells, pump stations, and more to communicate via various types of radio telemetry and wide area network syste ms. The scope of work included evaluating the existing communications/networking system , identifying vulnerabilities, and recommending equipment to get to an acceptable level of cybersecurity protection. The redesign identified many obsolete products such as the cellular based Cradlepoint network that is past its useful end-of-life. Other potential cybersecurity risks were identified and new equipment is needed to resolve these issues.
In 2020, the Water Utility also performed a risk and resilience assessment (RRA), per the United States Environmental Protection Agency’s America’s Water Infrastructure Act – Section 2013.
Cybersecurity objectives identified in the RRA were designed into the new communication/networking system and will be implemented with this well-organized, reliable, and efficient communication system using the latest proven equipment, methods, and technologies.
The City’s IT Department was consulted to identify the most reliable and supported network equipment needed for the system including routers, ethernet switches, firewalls, and their associated licensing software and support services . The City uses a cooperative procurement method through the National Association of State Procurement Officials which would result in the purchase of thes e products at the lowest cost. The Cisco and Palo Alto products are a standard product offering tha t is used and integrated within the City’s existing network system platform. IT staff are trained and certified to operate Cisco products. The water network design plan provided by TJCAA/JEGO Systems specifically recommends Cisco and Palo Alto due to their industry-leading quality and product availability. Based on previous experience, the consultant does not recommend building a network with an assortment of manufacturers that are not compatible with the network design strategy nor meet the IT Department ’s existing networking platform.
Environmental Review
Staff has reviewed the project and determined that the project is exempt from review under the California Environmental Quality Act Guidelines, per Section 15301 – Existing Facilities. Class 1 exemptions include the operation, repair, maintenance, or minor alteration of existing public structures, equipment, and facilities. The existing network and communi cation system will be replaced to meet modern security and efficiency standards. The project will not result in expansion of use, as the project does not include the construction of new facilities. The action area does not have significant values for wildl ife habitat or other environmental resources and the project has no potential to have a significant effect on the environment.
Packet Pg. 248
Attachment: Previous Staff Report 12-06-22 (4.11(d)--Award Bid Schedule No. 5347, Water System Network Equipment) Report to Redding City Council November 29, 2022
Re: 4.11(a)--Authorize Sole-Source Purchase of Network Equipment Page 3
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.” • 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
^Notice of Exemption
Packet Pg. 249
Attachment: Previous Staff Report 12-06-22 (4.11(d)--Award Bid Schedule No. 5347, Water System Network Equipment) Packet Pg. 250
Attachment: Previous Staff Report 12-06-22 (4.11(d)--Award Bid Schedule No. 5347, Water System Network Equipment)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve a project budget increase in the amount of $75,000 for the completion of Bid Schedule No. 5286, East Cypress Storm Drain Replacement Project.
Fiscal Impact
The East Cypress Storm Drain Replacement Project (Project) is being funded by the Storm Drain Utility Fund. The proposed $75,000 increase will come from already budgeted funds in the Strom Drain Division . The total project cost, including the proposed increase, is expected to be just under $563,000.
Alternative Action
The City Council (Council) may choose to reject the request and provide alternative direction to staff.
Background/Analysis
On June 7, 202 2, the Council awarded the construction contract for the project to Northstate Earth and Water, Inc. The project consists of replacing a deteriorating six-foot by two-feet-eight- inch storm drain box culvert that has reached the end of its useful life with a new pre -cast box culvert. This facility crosses East Cypress Avenue between Oxford Road and Bunker Street. This project also includes replacing asphalt concrete paving, curb, gutter, sidewalk, storm drainage inlets, and other miscellaneous items of work.
During the course of construction, conditions in the field warranted changes to meet th e original project’s intent. These changes includ e unidentified water service conflicts, trench shoring, and compaction issues. However, the most significant item was the discovery of a PG&E gas service and AT&T duct bank that was poured directly into the foundation of the culvert being replace d, MEETING DATE: February 21, 2023
ITEM NO. 4.11(e)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(e)--Approve Contingency Increase for the East Cypress Avenue Storm Drain Replacement Project Bid Schedule No. 5286
Chuck Aukland, Public
Works Director
Packet Pg. 251
Report to Redding City Council February 10, 2023
Re: 4.11(e)--Approve Contingency Increase for the East Cypress Avenue Storm Drain Replacement Project Page 2
which caused re-routing and delays to the project. The noted changes will result in the contract bid item exceeding the bid quantity.
The additional work will also cause the project budget to exceed the awarded am ounts. An additional $75,000 in construction contingency funds is being requested to cover the additional expense.
COST SUMMARY
Item Awarded Amount Projected Amount Increase
Construction Contingency $35,000 $110,000 $75,000
Environmental Review
This action is not a project as defined by the California Environmental Quality Act (CEQA), and no further action is required. On June 7, 2022, the Council determined that the project is categorically exempt from review under the CEQA Guidelines, pursuant to Section 15301(b) – Existing Facilities.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
Previous Staff Report 06-07-22
Packet Pg. 252
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Bid Schedule No. 52 86 (Job No. 2667), East Cypress Avenue Storm Drain Replacement Project:
(1) Award to Northstate Earth and Water, Inc., in the amount of $322,472.07; (2) Approve an additional $85,000 to cover the cost of administration and inspection fees; (3) Approve $35,000 to provide construction contingency funding; (4) Approve $30,000 for project development including environmental and permits; (5) Authorize the City Ma nager to approve additional increases in either the construction management or construction contingency amounts up to a total of $15,000; and (6) Find that the Project is categorically exempt from the California Environmental Quality Act per Section 15301(b) – Existing Facilities.
Fiscal Impact
Sufficient Storm Drain Maintenance funds have been budgeted for Fiscal Year 2021 -22 to pay for this project.
Project cost components are estimates and some shifting of the project development, construction management, and construction contingency funds may be necessary to balance the project within the approved budget.
MEETING DATE: June 7, 2022
ITEM NO. 4.11(d)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(d)--Award Bid Schedule No. 5286 (Job Order No. 2667) East Cypress Avenue Storm Drain Replacement Project
Cost Summary
Item Estimated
Project Development Costs $30,000
Construction Contract + Contingency $357,472
Contract Administration, Inspection, Testing $85,000
Additional City Manager Authority $15,000
Total Project Costs $487,472
Chuck Aukland, Public
Works Director
Packet Pg. 253
Attachment: Previous Staff Report 06-07-22 (4.11(e)--Approve Contingency Increase for the East Cypress Avenue Storm Drain Replacement Report to Redding City Council June 1, 2022
Re: 4.11(d)--E. Cypress Avenue Storm Drain Replacement Project Page 2
Alternative Action
The City Council (Council) may choose not to award the bid for the East Cypress Avenue Storm Drain Replacement Project Bid Schedule and direct Storm Drain maintenance crews to continue monitoring the deteriorating concrete soffit of the existing box culvert and repair as needed.
Roadway failure on this section of East Cypress would impact local business and traffic.
Background/Analysis
The project consists of replacing a deteriorating six-foot by two-feet-eight-inch storm drain box culvert that has reached the end of its useful life with a new pre-cast box culvert . This facility crosses East Cypress between Oxford Road and Bunker Street . This project also includes replacing asphalt concrete paving, curb, gutter, sidewalk, storm drainage inlets and other miscellaneous items of work.
Attached is the tabulation of bids received and opened on May 5, 2022. The low bid in the amount of $ 322,472.07 was received from Northstate Earth and Water, Inc., of Redding, California. The engineer’s estimate was $ 290,250. Total project development costs for this project are estimated to be $ 30,000. Project development costs include engineering and environmental with permits.
Staff has determined that the project qualifies as Categorically Exempt from environmental review under CEQA Guidelines Section 15301. The project has been reviewed for sensitive resources such as threatened or endangered species or their habitats, sensitive vegetation communities, and tribal cultural resources. The project has no potential to have a significant effect on the environment.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
^Bid Tabulation
^Location Map
^Notice of Exemption (unfiled)
Packet Pg. 254
Attachment: Previous Staff Report 06-07-22 (4.11(e)--Approve Contingency Increase for the East Cypress Avenue Storm Drain Replacement BID TABULATION FOR:
E. CYPRESS AVENUE STORM DRAIN REPLACEMENT PROJECT
ENGINEER'S EST Northstate Earth & Water Site Work Solultions 5/5/2022 UNIT UNIT UNIT
ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 WATER POLLUTION
CONTROL LS 1 $8,000.00 $8,000.00 $4,140.00 $4,140.00 $1,351.00 $1, 351.00 2 CONSTRUCTION SIGNS EA 6 $300.00 $1,800.00 $583.48 $3,500.88 $563. 00 $3,378.00 3 PROJECT FUNDING SIGN LS 1 $1,200.00 $1,200.00 $1,380.00 $1,380.00 $1,500.00 $1,500.00 4 SIGN (PORTABLE
CHANGEABLE MESSAGE) EA 2 $1,500.00 $3,000.00 $2,466.15 $4,932.30 $ 1,861.00 $3,722.00 5 TRAFFIC CONTROL LS 1 $45,000.00 $45,000.00 $50,059.46 $50,059.46 $25,182.00 $25,182.00 6 TRENCH SHEETING AND
SHORING LS 1 $6,000.00 $6,000.00 $18,906.38 $18,906.38 $3,507.00 $ 3,507.00 7 PRECAST REINFORCED
BOX CULVERT (6' X 2'-8") CY 77 $2,650.00 $204,050.00 $2,457.73 $18 9,245.21 $3,278.00 $252,406.00 8 CAST-IN-PLACE
REINFORCED BOX
CULVERT (6' X 2'8") CY 8 $2,650.00 $21,200.00 $6,288.48 $50,307.84 $11,061.00 $88,488.00 TOTAL - CONTRACT ITEMS $290,250.00 $322,472.07 $379,534.00 Shaded areas indicate corrections made in accordance with the special provisions.
Bid Schedule No.: 5286
Packet Pg. 255
Attachment: Previous Staff Report 06-07-22 (4.11(e)--Approve Contingency Increase for the East Cypress Packet Pg. 256
Attachment: Previous Staff Report 06-07-22 (4.11(e)--Approve Contingency Increase for the East Cypress Avenue Storm Drain Replacement Packet Pg. 257
Attachment: Previous Staff Report 06-07-22 (4.11(e)--Approve Contingency Increase for the East Cypress Avenue Storm Drain Replacement
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the sole source purchase of Kubwater Polymer for the City of Redding Wastewater Treatment Plants for a not to exceed amount of $400,000 per year.
Fiscal Impact
The Wastewater Utility Division has sufficient funds available in the approved Fiscal Year 2022- 23 budget for this purchase.
Alternative Action
The City Council (Council) could choose not to approve the purchase and allocation of additional funds and provide alternative direction to staff. This alternative will limit the ability to obtain the optimal polymer for wastewater flow into the City of Redding ’s (City) system.
Upsetting the biological processes could lead to operational process failure.
Background/Analysis
Polymer is used at the wastewater treatment plants to aid in the dewatering process of biosolids, in order to meet landfill disposal requirements. The City of Redding wastewater treatment plants have used the same polymer for decades (Zetag 8848 and 8858, sold by Kubwater) with excellent results. These po lymers have been blended specifically to work with the process and equipment at each of the treatment plants and is also the recommended polymer of the centrifuge manufacturer at the Clear Creek Wastewater Treatment Plant dewatering facility. Over the past few years, costs have risen due to inflation and exceeded the Redding Municipal Code purchasing limits for staff approval.
A competitive bid process for an annual contract risks upsetting the operations of the plant by selecting differing products based upon selection criteria on a regular basis that may not work MEETING DATE: February 21, 2023
ITEM NO. 4.11(f)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(f)--Authorize the sole source purchase of Polymer for the Wastewater Treatment Plants
Chuck Aukland, Public
Works Director
Packet Pg. 258
Report to Redding City Council February 15, 2023
Re: 4.11(f)--Authorize the sole source purchase of polymer for the Wastewater Treatment Plants Page 2
well for the City’s treatment plants . The wastewater treatment process is highly regulated and is better suited to the dosing of a consistent product, as has been for many years. By making a sol e source finding, the City of Redding wastewater treatment plants would continue to use the polymer that has proven to work successfully without risking the upset of the process or potential operational failings due to inconsistencies.
On June 16, 2021, the City Manager’s office approved a Sole Source Finding not to exceed $200,000 staff limit for purchasing in accordance with Section 4.20.080 A(6) as noted below.
Per Redding Municipal Code 4.20.080 – Bidding – When dispensed with.
A. Purchase of supplies, services or equipment shall be by bid procedures pursuant to Sections 4.20.120 and 4.20.130, except that bidding may be dispensed with only in the following circumstances:
6. When, at the determination of the City Manager, or his/her designee, for award s up to two hundred thousand dollars, or upon approval by the City Council for awards over two hundred thousand dollars, the supplies services or equipment to be purchased do not constitute public works projects and are to be procured under conditions repr esenting best value to the City taking into consideration values other than solely price.
Staff is requesting the Council’s approval to purchase Zetag Polymer, sold by Kubwater not to exceed $400,000 annually.
Environmental Review
This action is not a project as defined by the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
^Sole Source Purpose Finding 06-21-21
Packet Pg. 259
Packet Pg. 260
Attachment: ^Sole Source Purpose Finding 06-21-21 (4.11(f)--Authorize the sole source purchase of polymer for the Wastewater Treatment
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize submission of a grant application to the U nited States Department of Transportation Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program in the amount of $25,000,000 for the South Bonny view Divergent Diamond Interchange and Corridor Capacity Improvement Project.
Fiscal Impact
If selected, the U nited States Department of Transportation may award $25,000,000 in grant funding to the City of Redding (City) . Local required matching funds are variable depending on certain community characteristics specified in the notice of funding opportunity. The South Bonnyview Divergent Diamond Interchange and Corridor Capacity Improvement Project (Project) is eligible to use Traffic Impact Fee program funds as a local match; however, the local match funds will be determined at the time of the grant award. City staff will bring any final award and required local match before the City Council (Council) for approval when it is known.
Alternative Action
The Council may choose not to authorize this grant application, in which case City staff will not apply to the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program. The City w ould not be considered under this program and m iss this opportunity to receive Infrastructure Investment and Jobs Act funding through a competitive grant program.
Background/Analysis
The Infrastructure Investment and Jobs Act was signed into law by the President of the United States in November 2021 and made additional funding for infrastructure , including roads, harbors, rail networks, and other transportation , available through a number of programs. In its first year, the RAISE grant program had $1,500,000,000 of funding available . Previously, under MEETING DATE: February 21, 2023
ITEM NO. 4.11(g)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(g)--Authorize Grant Application to the US Department of Transportation RAISE Grant Program
Chuck Aukland, Public
Works Director
Packet Pg. 261
Report to Redding City Council February 14, 2023
Re: 4.11(g)--Authorize Grant Application - US Department of Transportation Page 2
the American Recovery and Reinvestment Act, the RAISE program was known as TIGER grants which have included projects such as dedicated bus lanes, highway and bridge repair, dock replacements, and rail -to-trail projects in a number of states. The RAISE pro gram is the first discretionary funding program tapping into the Infrastructure Investment and Jobs Act to accept applications.
The City is requesting authorization to seek grant funding for $25,000,000 to complete the project. In the previous funding cyc le, the City Council approved an application which was not selected. The United States Department of Transportation provided feedback on that application to City staff last November which painted an optimistic picture and revealed that the application scored high in many areas and passed several rounds of review, however, it did not make the shortlist for the final round of project selection.
The City has already made progress on portions of this project using existing funding, notably the roundabout on the western side of the project location. The remaining improvements include work on the ramps on and off of Interstate 5 , the diverging diamond interchange itself, and another roundabout on the eastern side of the project area. These improvements are critic al for serving the increased economic activity in the area and new housing inventory that will see more people living near and commuting through the area. This project also benefits from being innovative in the context of the California road network. While other diverging diamond interchanges exist throughout the United States, this project has the potential to be one of the first in the State of California.
Environmental Review
This action is not a project as defined by the California Environmental Quali ty Act (CEQA), 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.”
• 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.” • Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and enco urage investment in the community.”
Attachments
^South Bonnyview DDI Exhibit
Packet Pg. 262
Attachment C
Packet Pg. 263
Attachment: ^South Bonnyview DDI Exhibit (4.11(g)--Authorize Grant Application - US Department of Transportation)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept the Mayor’s recommendation to re-appoint Barbara Ghidinelli as the City of Redding representative to the Shasta County Commission on Agi ng to serve a second two-year term beginning February 21, 2023, through January 6, 2025.
Fiscal Impact
There is no impact to the General Fund.
Alternative Action
The City Council could choose not to approve the Mayor’s recommendation.
Background/Analysis
Commissioner Barbara Ghidinelli has served one full term and is eligible for reappointment. This Commission has no term limits and the two -year term expires the first Monday after January 1.
Ms. Ghidinelli has expressed interest in serving a second term on the Shasta County Commission on Aging. If approved, her term will begin February 21, 2023, and end January 6, 2025.
Environmental Review
This is not project as a defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
MEETING DATE: February 21, 2023
ITEM NO. 5.1
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 5.1--Consider appointment to the Shasta County Commission on Aging.
Michael Dacquisto, Mayor
Packet Pg. 264
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Conduct a public hearing and, upon conclusion, offer an Ordinance amending RMC Title 18, Zoning, Chapter 18.43, (Standards for Specific Land Uses) by amending Section 18.43.180 (Short-Term Rentals), for first reading by title only, waive the first reading; and direct the City Attorney to prepare and the City Clerk to publish a summary ordinance according to law.
Fiscal Impact
Adoption of the proposed Short-Term Rental Ordinance (Ordinance) would require hiring additional staff in the Planning and Code Enforcement Divisions to adequately process and enforce short-term rental permits. Fees collected from the permitted activity could offset some or all of the expense depending on the established fee.
Alternative Action
The City Council (Council) could choose to not offer the proposed ordinance for first reading and t he regulations pertaining to short -term rentals will remain as they exist currently. The Council could also provide other direction to staff.
Background/Analysis
The Council has discussed the ordinance on multiple occasions . Below is a summary of these discussions:
July 19, 2022 – The Council received a status update regarding implementation of the City of Redding ’s (City) ordinance. Public comment received at the meeting was mixed, with speakers both supporting and opposing tighter regulations for short -term rentals. Following this meeting, the Council and staff continued to receive community feedback regarding short -term rentals, specifically vacation rentals.
MEETING DATE: February 21, 2023
ITEM NO. 6.1
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 6.1--Public Hearing to consider Rezoning Application RZ -2022-02356, by the City of Redding (Ci ty), and Ordinance amending the City's Zoning Ordinance regarding the short-term rental ordinance (Redding Municipal Code (RMC) Section 18.43.180).
Jeremy Pagan, Development
Services Director/Bldg
Official
Packet Pg. 265
Report to Redding City Council February 15, 2023
Re: 6.1--Rezoning Application RZ-2022-02356, by the City of Redding Page 2
August 2, 2022 – The Council directed the City Attorney to return with an Interim Urgency Ordinance which would have had the effect of prohibiting the submission and receipt of applications for vacation rental permits.
August 16, 2022 – The Council considered , but ultimately did not approve, the Interim Urgency Ordinance; however, the consensus of the Council was the ordinance should be reviewed and possibly updated. The Council directed staff to return with recommendations for potential amendments to the ordinance for its consideration.
October 18, 2022 – The Council reviewed staff’s suggested modifications to the ordinance and provided further direction to staff to craft a revised ordinance. The ordinance revisions would then need to be brought before Planning Commission (Commission), and then subsequently to the Council for consideration.
January 10, 2023 - The Planning Commission considered th e proposed revisions to the ordinance and heard significant public comment in opposition. The Planning Commission considered each proposed change and provided feedback to staff. A summary of the proposed ordinance revisions, alon g with the Planning Commission’s feedback, is presented below.
The proposed ordinance revision appears first, followed by the Planning Commission’s recommendation in italics.
Proposed Revisions to Vacation Rental Requirements
Density
• Limit the number of Vacation Rentals within a geographic area based on street and neighborhood.
o 1000 feet minimum separation between Vacation Rentals located on the same street (approximately 10-15 lot separation).
o 500 feet (i.e. half the distance) minimum separation between Vacation Rentals located on separate streets.
o When there are natural buffers such as major arterials or rivers/creeks the distance may be reduced to 300 feet separation between Vacation Rentals.
Planning Commission supports this proposed revision.
Location
• Prohibit Vacation Rentals on properties containing an accessory dwelling unit (ADU).
It should be noted that ADU’s permitted after 2020 are not allowed to be STR by State Law. Administratively this makes enforcement of the ordinance difficult if any allowance is made.
Planning Commission does not support this proposed revision. The Commission noted that having an occupied accessory dwelling unit with a long -term tenant would actually provide oversight of the vacation rental and likely result in better compliance.
Packet Pg. 266
Report to Redding City Council February 15, 2023
Re: 6.1--Rezoning Application RZ-2022-02356, by the City of Redding Page 3
Total Number of Rentals
• The total number of permitted rentals shall not exceed 400 at any one time.
Planning Commission does not support this proposed revision. The Commission is of the opinion that the combination of the proposed density requirement and enforcement o f the ordinance would eliminate those rentals that are not willing to comply with the regulations. Thereby, a maximum cap on the number is units is unnecessary.
Public Hearing Requirements
• Require a Planning Commission hearing when:
o One or more parties within the notification area objects.
Planning Commission supports this proposed revision.
Owner Criteria
• Owner must have owned the property a minimum of one year to be eligible to apply for a permit (require supporting documen tation which will include a copy of the Grant Deed).
o Owner must be a “natural person.”
o Owner must be the applicant.
Planning Commission supports this proposed revision.
o Owner must be a Shasta County Resident
Planning Commission does not support this proposed revision.
Permit Criteria
• Require site manager information to be kept current with the City. • Revise maximum occupants per bedroom from two adults to two persons • Limit maximum number of people on the property at any one time to no more than 16 persons.
• Require an inspection of the site prior to issuance of a permit. • Require floor plan.
• Require a log of vehicle information including make, model, color , and license plate of all tenant vehicles.
• Reduce the response time requirement for site managers fr om 60 minutes to 45 minutes.
• All required parking spaces shall be available during rental periods, including garage parking.
• Maximum five-bedroom homes eligible for permit.
• Notification of application shall be sent to property owners within 1,000 feet of applicant’s property.
• The appeal period of a decision on vacation rental applications is 15 days.
Planning Commission supports this proposed revision.
• One person shall not have a financial interest in more than two vacation rentals within the City of Redding at any one time.
Packet Pg. 267
Report to Redding City Council February 15, 2023
Re: 6.1--Rezoning Application RZ-2022-02356, by the City of Redding Page 4
• Provide one additional parking space in addition to the one per bedroom already required.
Planning Commission does not support this proposed revision.
Suspension and Termination
• Language regarding suspension and termination has been added.
Planning Commission supports this proposed revision.
Legal Nonconforming Rentals and Amortization of Non-Conforming Uses • Language has been added to address grandfathering including addressing all existing vacation rentals not in compliance with the density regulations, which will be granted continual rights to operate for three years from the effective date of the new regulations and thereafter entered into a lottery to apply for the necessary permit.
Planning Commission does not support this pr oposed revision. The Commission noted that the existing rentals that would not comply with the density regulations should be grandfathered in under the existing Non-Conforming Regulations of the Zoning Code and should not be subject to amortization.
Proposed Revisions to Hosted Homestay Requirements
• Require a floor plan be submitted maintaining a record of which rooms are being rented.
• Require an annual affidavit concurrent with business license renewal. • Owner must, other than for purposes of daily routin es, occupy the residence at all times when rooms are being provided for rent.
Planning Commission supports this proposed revision.
• Require one additional parking space for guest parking.
Planning Commission does not support this proposed revision.
As previously noted to the Council, should the proposed changes to the ordinance be adopted, additional staff resources would be necessary to process permit applications and adequately enforce those permits. Specifically, if public hearings are required each time a neighbor objects to a permit, or if the required notification area to neighbors is increased from 300 feet to 1000 feet, this could be a significant time commitment for staff and the Planning Commission.
Additionally, increased enforcement and devel opment of tools such as a short -term rental web portal with centralized information for the public, for example, will require additional staff time and resources. Increasing the annual permit application fee (currently $1,169) could assist in providing the necessary funds to support additional staffing. At this point, it is estimated that one additional Planning position and one additional Code Enforcement position is necessary . Staff will return to the Council with a proposal for an adjusted fee and prepar e an accompanying budget resolution requesting and justifying additional staffing resources for consideration and approval.
Packet Pg. 268
Report to Redding City Council February 15, 2023
Re: 6.1--Rezoning Application RZ-2022-02356, by the City of Redding Page 5
Environmental Review
The passage of the proposed ordinance is not a “project” according to the definition under the California Environmental Quality Act guidelines and, therefore, is not subject to the provisions requiring environmental review.
Council Priority/City Manager Goals
• Government of the 21 st Century – “Be relevant and proactive to the opportunities and challenges of tod ay’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 Ordinance
Strikeout Ordinance
Packet Pg. 269
DRAFT NEW ORDINANCE
ORDINANCE NO. _____
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 18
(ZONING), CHAPTER 18.43 (STANDARDS FOR SPECIFIC LAND USES ) BY AMENDING SECTION 18. 43.180 (SHORT TERM RENTALS )
THEREBY UPDATING THE ZONING CODE
WHEREAS, the City of Redding Planning Commission held a duly noticed public hearing pertaining to proposed amendments to Redding Municipal Code Section 18.43.180 on January 10, 2023; and
WHEREAS, the City Council of the City of Redding held a duly noticed public hearing on February 21, 2023, whereby it considered the oral and written report of City staff, and public comment; and
WHEREAS, the City Council finds compliance with State law will be at tained through the adoption of the amended regulations relating to short term rentals;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS:
Section 1. Title 18 (Zoning), Chapter 18. 43 (Standards for Specific Land Uses) are hereby amended to read as follows:
18.43.180 Short-Term Rentals
A. Purpose
The purpose of this Section is to establish an appropriate permitting process and standards for Short-Term Rental of dwelling units throughout the City; to provide a visitor experience and accommodation as an alternative to the typical hotel, motel, and bed and breakfast accommodations customarily permitted in the City; to minimize potential negative secondary effects of Short-Term Rental use on surrounding residential neighborhoods; to retain the character of the neighborhoods in which any such use occurs; and ensure the payment of required transient occupancy taxes.
B. Types of Short -Term Rentals. For purposes of this Section, the following Short -Term Rental facilities are established:
1. Hosted Homestay. An owner-occupied “Dwelling Unit,” as defined by Section 18.61.020 under “Residential Structure Types” and excluding apartment units and duplexes, with more than one habitable room, where, for com pensation, individual overnight room accommodations are provided for a period of less than thirty days.
2. Vacation Rental. An entire “Dwelling Unit ,” as defined by Section 18.61.020 under “Residential Structure Types” and excluding apartment units and duplexes, where, for compensation, overnight accommodations are provided for a period of less than thirty days and the owner may or may not reside within the dwelling unit for the term of the rental.
Packet Pg. 270
Attachment: ^Draft Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding)
C. Short-Term Rental Permit Requirements. No person shall use, advertise, or market for use, any dwelling unit on any parcel in any zoning district for Short-Term Rental purposes without first obtaining approval as required by this Section. The following approval process is established:
1. Hosted Homestay: This use is permitted within all zoning districts subject to obtaining a Zoning Clearance from the Director and providing an affidavit certifying that the owne r understands, agrees to , and is in compliance with the requirements of this Section.
Applicants may be required to provide a site plan or other information determined necessary by the Director to determine compliance with this Section and shall pay an application fee as may be established by resolution of the City Council. Permits for Hosted Homestays shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.
2. Vacation Rental: This use is p ermitted within all zoning districts subject to obtaining a Site Development Permit issued by the Director in accordance with the provisions of Chapter 18.11, Common Procedures and Chapter 18.13, Site Development Permits of this Code, except that Site Development Permits for Vacation Rentals shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.
D. Districts in Which Permitted. The regulations of this chapter apply to Short-Term Rentals in all zoning districts.
E. General Requirements - Hosted Homestay.
1. No more than one dwelling unit on a lot may be used at any one time.
2. A maximum of two rooms may be available for rent at any time. A floor plan shall be submitted with the affidavit indicating the rooms for rent.
3. Occupancy shall be limited to a maximum of two persons per rented room. Room rental shall be limited to a maximum of 180 rental days per calendar year.
4. The owner shall be the applicant, and other than for purposes of daily routines, the applicant must occupy the residence at all times when rooms are being provided for rent.
5. At the time of permit renewal, the property owner shall attest they understand and agree to the Hosted Homestay requirements by signing the Hosted Homestay Affidavit available at the Development Services Department and any payment due must be remitted.
6. Except as set forth in Section 18.43.060 as it relates to licensed bed and breakfast inns, no owner shall cook, prepare or serve for consumption food of any kind for consumption by the Short-Term-Rental tenant.
7. Minimum required on-site parking space shall include one space for each room rented plus one additional parking space. Short-Term-Rental tenant parking spaces shall be within the primary driveway or other on -site location . External changes to a property such as converting significant areas of front yard landscape for purposes of meeting parking requirements is not allowed.
Packet Pg. 271
Attachment: ^Draft Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding)
8. All required on-site p arking spaces (including garage parking if identified at time of approval) shall be accessible and available to Short-Term-Rental tenants at all times during the rental periods.
9. Short-Term Rentals shall meet all applicable building, health, fire and related safety codes at all times, including provision of working smoke and carbon monoxide detectors.
10. The applicant shall post emergency evacuation instructions and "house policies" within each Short-Term-Rental tenant bedroom. The house policies shall be in cluded in the rental agreement, and shall be enforced by the applicant. At a minimum, the house policies should:
a. Reinforce the City of Redding’s Noise Standards (RMC Section 18.40.100) by establishing outdoor "quiet hours" between 10:00 p.m. and 7:00 a .m. to minimize disturbance to neighboring residences. Outdoor activities are prohibited during “quiet hours.”
b. Require that Short-Term-Rental tenant vehicles be parked on the premises, not the street, in compliance with this Section.
11. The property shall not be used to host non -applicant related weddings, parties, and other similar events.
12. On-site advertising signs or other displays indicating that the residence is being utilized as a Short-Term Rental, are prohibited.
13. No person shall advertise a Short-Term Rental on any media platform when such advertisement or notice contains an inaccurate or misleading statement of the requirements of, or indicate amenities not allowed by the Redding Municipal Code.
14. A City business license shall be obtained and transient occupancy taxes paid in accordance with Chapter 4.12 as required. All advertising for any Short-Term Rental shall include the City of Redding transient occupancy tax number and the City of Redding business license number assigned to the applicant. With submittal of transient occupancy taxes, the applicant shall also submit a statement indicating the number of Short-Term-Rental tenant stays, and the number of Short-Term-Rental tenants for the reporting period.
15. The permit is not transferrable to a subsequent property owner or to another property.
16. This ordinance shall not be construed as waiving or otherwise impacting the rights and obligations of any individual, group, or the members of any homeowner’s association, as defined, to comply with or enforce CC&R’s and no permit shall be issued when it is demonstrated by substantial evidence that issuance of a permit will be in contradiction to any recorded CC&R’s or other record providing record notice of a restriction on the use of the property.
F. General Requirements - Vacation Rentals.
1. With the exception of items 1 through 6 listed in Section 18.43.180(E) above, the General Requirements provisions for Hosted Homestays shall apply to Vacation Rentals.
The following additional provisions shall also be applicable to Vacation Rentals which may be supplemented by requirements established by the Director with approval of the Packet Pg. 272
Attachment: ^Draft Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding) required Site Development Permit as necessary to maintain compatibility of the use w ith the surrounding properties.
a. A Vacation Rental shall not be permitted on properties as follows:
1. Containing an Accessory Dwelling Unit with a building permit application submitted on or after January 1, 2020 in compliance with State Law governing Accessory Dwelling Units (Government Code Section 65852.2); or
2. Within one thousand (1,000) feet of an existing Vacation Rental on the same street; or
3. Within a five hundred (500) foot radius of an existing permitted Vacation Rental; or
4. At the discretion of the Director and notwithstanding subparagraph (iii), within a three hundred (300) foot radius of an existing Vacation Rental when there is a natural buffer such as a major arterial, rail right -of-way, flood control channel or stream corridor between the Vacation Rental units.
b. The total number of Vacation Rentals in the City shall not exceed four hundred (400) rentals at any one time.
c. The owner shall be the applicant and shall be as follows:
1. A “natural person” or trustee of a living trust, thereby excluding all limited liability companies, partnerships, corporations or other entities which protect against, in whole or in part, the liability of its members; and
2. A Shasta County resident, as verified by a California Driver License or Identification Card issued by the California Department of Motor Vehicles.
d. A Vacation Rental shall not be rented to multiple separate parties concurrently.
e. The applicant shall keep on file with the City the name, telephone number, and email address of a local contact person who shall be responsible for responding to questions or concerns regarding the operation of the Vacation Rental. This information shall be posted in a conspicuous location within the Vacation Rental dwelling. The local contact person shall be avail able twenty-four hours a day to accept telephone calls and respond physically to the Vacation Rental within forty-five minutes, if necessary. The name and contact information of the local contact person will be made available to the public. The contact information shall be kept current at all times.
f. No person shall have a financial interest in more than two (2) Vacation Rentals within the jurisdictional boundaries of the City of Redding at any one (1) time.
1. “Financial Interest” is defined as having an ownership interest in any entity which has a property interest in the fee title of a property hosting a Vacation Rental; having an ownership interest in or right to receive monetary compensation of any kind from a Vacation Rental; having a right to receive Packet Pg. 273
Attachment: ^Draft Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding) income of any kind resulting from a loan (i.e., repayment of principal or interest) or other instrument applicable to a property hosting a Vacation Rental; or having any right to derive monetary compensation from the provision of services to an owner, or s aid owners agent, of a Vacation Rental.
g. A Vacation Rental shall not be operated from a dwelling unit containing more than five (5) bedrooms. A floor plan shall be submitted with the permit application identifying the bedrooms of the single-family residence. To qualify as a bedroom, the room shall contain a built-in closet.
h. Occupancy shall be limited to a maximum of two persons per rented room.
i. The maximum number of persons on the property at any time shall be limited to sixteen (16) persons.
j. Prior to issuance of a permit, a physical inspection of the dwelling unit and property shall be conducted by City staff.
k. Each operator shall maintain a log of each Short -Term-Rental tenant’s vehicle(s).
The log shall minimally consist of the rental period, the license plate, make, model, and color for each vehicle. The log shall be made available at any time upon request by the City.
G. Application Required.
1. Where a Site Development Permit is required by this Section, applicants for a Short-Term Rental use shall pay the application fee established by resolution of the City Council and apply for a permit in accordance with the provisions of Chapter 18.11, Common Procedures, except as follow:
a. Notices of the Vacation Rental application shall be sent to all owners of real property within one thousand (1,000) feet of the applicant’s property for a fifteen (15) day notification period. Should one or more owner(s) of real property within the notification area object in writing to the approval of the Vacation Ren tal or appeal the approval by the Director within the fifteen (15) day appeal period, the application shall be brought forth before the Planning Commission for consideration.
2. In making a determination to approve, conditionally approve, or deny any application, including an application for renewal, for a Hosted Homestay or Vacation Rental, the Director, or appellate body as the case may be, may consider such factors including , but not limited to, ability to comply with the provisions set forth in this Secti on, evidence of operation in violation with this Section, complaints of neighbors, code enforcement activity, timeliness of business permit renewal, timeliness or non -payment of transient occupancy tax, proximity of the property to group homes, residential care facilities, and other neighborhood and site characteristics.
H. Suspension and Termination.
1. The Director, or appellate body, shall apply the criteria set forth in Section 18.43.180(G)(2) in determining whether any permit issued pursuant to this Sec tion shall be suspended or Packet Pg. 274
Attachment: ^Draft Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding) terminated. Notice shall be provided to the applicant pursuant to the procedure set forth in Section 18.11.060.
2. Appeal of the suspension or termination by the Director of a Vacation Rental Permit shall be in accordance with Section 18.11.090.
3. Appeal of the suspension or termination by the Director of a Hosted Homestay Permit shall be to the Planning Commission within ten days of service of the Director’s decision, and finally to the City Council within ten days of service of the Planning Commission’s determination. Decisions of the City Council are final, and all challenging a decision of the Director must exhaust all rem edies set forth in this Section 18.43.180(H)(3) prior to bringing a challenge pursuant to Code of Civil Procedure section 1094.5.
4. Service shall be determined to be effective upon personal delivery or deposit in the United States mail postage prepaid, whichever is earlier.
I. Legal Non-Conforming Uses and Amortization of Non-Conforming Uses.
1. No permit issued pursuant to this Section shall be considered as creating a vested property right to a renewal of said permit, and no condition of economic or persona l investment or expectation of the same in an existing Vacation Rental or Hosted Homestay shall create any such vested property right.
2. Except as provided in Section 18.43.180(I)(3), no permit shall be issued which would cause a violation of any provision of this Section.
3. Those possessing a current, valid permit for a Vacation Rental issued pursuant to this Section which is effective as April 1, 2023, are excused from compliance with the requirements of Sections 18.43.180(E)(7) -(8), 18.43.180(F)(2)(a) -(b), and
18.43.180(F)(2)(f). Notwithstanding the preceding, no permit shall be renewed as of April 1, 2026, without demonstration of compliance with all the terms and conditions of this Section.
4. As of April 1, 2026, or as soon thereafter as may feasibly be accomplished, all operations in noncompliance with the site -distance and/or density requirements set forth in Section
18.43.180(F)(2)(a)-(b), shall be entered into a lottery or lotteries to determine which permit(s) will not be renewed due to non -compliance with the requirements set forth in Section 18.43.180(F)(2)(a) -(b). Those selected by lottery for continued operation of a Vacation Rental may, assuming compliance with all the provisions of this Section, continue in operation thereafter and apply for renewal of said permit thereafter without necessity of undergoing further random processes of selection. Those not selected for continued operation of a Vacation Rental may continue operation but only until such time as the permit issued has lapsed due to expiration. Thereafter, the use shall cease.
5. Exclusion from continued operation pursuant to Section 18.43.180(I)(4) shall not be construed as barring subsequent application.
6. As of April 1, 2026, and only as it relates to the density requirement set forth in Section
18.43.180(F)(2)(b), if the total number of Vacation Rentals falls below the number of four hundred (400), applications will be received and processed on a first come -first served basis. Thereafter, to remain eligible for consideration of an application, the applicant must reapply prior to the expiration of one (1) year, and, assuming a timely reapplication, the Packet Pg. 275
Attachment: ^Draft Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding) date of application for purposes of receipt on a first come -first served basis shall be the date of the initial application.
J. Enforcement and Remedies.
Enforcement of the provisions of this Section may include the civil and equitable remedies as permitted by state law , the issuance of a citation and fine, or other legal remedy as provided by Chapter 1.12 of the Redding Municipal Code. Upon notification by the City, any Short-Term Rental operating in violation of the requirements of this Section must terminate operation s immediately. Further, a Site Development Permit issued under the authority of this Section may be revoked in accordance with the procedures established in Chapter 18.11, Common Procedures.
Section 2. 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 3. 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 4. 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 its publication according to law.
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 21st day of February, 2023, and was duly read and adopted at a regular meeting on the _____ day of ________, 2023, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MICHAEL DACQUISTO, Mayor
ATTEST: FORM APPROVED:
PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
DATE ATTESTED: February , 2023
Packet Pg. 276
Attachment: ^Draft Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding)
STRIKEOUT ORDINANCE
OLD LANGUAGE: STRUCK OUT
NEW LANGUAGE: UNDERLINE
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 18
(ZONING), CHAPTER 18.43 (STANDARDS FOR SPECIFIC LAND USES ) BY AMENDING SECTION 18. 43.180 (SHORT TERM RENTALS )
THEREBY UPDATING THE ZONING CODE
18.43.180 Short-Term Rentals
A. Purpose
The purpose of this Section is to establish an appropriate permitting process and standards for shortShort-term Term rental Rental of single-family dwellings units throughout the city and dwelling units located in the Downtown Redding Specific Plan area; to provide a visitor experience and accommodation as an alternative to the typical hotel, motel, and bed and breakfast accommodations customarily permitted in the city; to minimize pot ential negative secondary effects of shortShort-term Term rental Rental use on surrounding residential neighborhoods; to retain the character of the neighborhoods in which any such use occurs; and ensure the payment of required transient occupancy taxes.
A.B. Types of Short -Term Rentals. For purposes of this Section, the following Short -Term Rental facilities are established:
1. Hosted Homestay. An owner owner-occupied single-family dwelling unit “Dwelling Unit,” as defined by Section 18.61.020 under “Resident ial Structure Types” and excluding apartment units and duplexes, with more than one habitable room, where, for compensation, individual overnight room accommodations are provided for a period of less than thirty days.
2. Vacation Rental. An entire dwelling unit “Dwelling Unit ,” as defined by Section
18.61.020 under “Residential Structure Types” and excluding apartment units and duplexes, where, for compensation, overnight accommodations are provided for a period of less than thirty days and the owner (or the primary occupant with the written permission of the owner) may or may not reside within the dwelling unit for the term of the rental.
B.C. Short-Term Rental Permit Requirements. No person shall use, advertise, or market for use, any dwelling unit on any parcel in any zoning district for shortShort-term Term rental Rental purposes without first obtaining approval as required by this Section. The provisions of this Section apply to all existing and future short term rentals as defined in this Section. Existing short term rental facilities shall either apply for, or obtain authority to operate, within sixty days of the effective date of this ordinance. Short-term rentals located within the Downtown Redding Specific Plan area shall follow the process set forth for hosted homestays defined in subsection (C)(1) of this Section. The following approval process is established:
1. Hosted Homestay: This use is permitted within all zoning districts subject to obtaining a Zoning Clearance from the Director and providing an affidavit certifying that the owner understands, and agrees to, and is in compliance with the requirements of this Section.
Packet Pg. 277
Attachment: Strikeout Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding) Applicants may be required to provide a site plan or other information determined necessary by the Director to determine compliance with this Section and shall pay an application fee as may be established by resolution of the City Council. Permits for Hosted Homestays shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.
2. Vacation Rental: This use is permitted within all zoning districts subject to obtaining a Site Development Permit issued by the Director in accordance with the provisions of Chapter 18.11, Common Procedures and Chapter 18.13, Site Development Permits of this Code, except that site Site development Development permits Permits for Vacation Rentals shall expire twelve (12) months from issuance and are subject need to be renewed annually a requirement for renewal in accordance with this Section.
C.D. Districts in Which Permitted. The regulations of this chapter apply to shortShort-term Term rentals Rentals in all zoning districts.
D.E. General Requirements - Hosted Homestay.
1. No more than one dwelling unit on a lot may be used at any one time for short term rental purposes.
2. A maximum of two rooms may be available for rent at any time. A floor plan shall be submitted with the affidavit indicating the rooms for rent.
3. Occupancy shall be limited to a maximum of two adults persons per rented room. Room rental shall be limited to a maximum of 180 rental days per calendar year.
4. The property owner shall be the applicant, and other than for purposes of daily routines, the applicant must occupy the residence at all times when rooms are being provided for rent.
5. At the time of permit renewal, the property owner shall attest they understand and agree to the Hosted Homestay requirements by signing the Hosted Homestay Affidavit available at the Development Services Department and any payment due must be remitted.
4.6. Except as set forth in Section 18.43.060 as it relates to licensed bed and breakfast inns, no owner shall cook, prepare or serve for consumption food of any kind for consumption by the Short-Term-Rental tenant.
7. A mMinimum requiredof one on-site parking space shall be providedinclude one space for each room rented plus one additional parking space . Guest Short-Term-Rental tenant parking spaces shall be within the primary driveway or other on -site location . External changes to a property such as converting significant areas of front yard landscape for purposes of meeting parking requirements is not allowed.
5.8. All required on-site parking spaces (including garage parking if identified at time of approval) shall be accessible and available to Short-Term-Rental tenants at all times during the rental periods.
6.9. Short-term Term rentals Rentals shall meet all applicable building, health, fire and related safety codes at all times, including provision of working smoke and carbon monoxide detectors.
Packet Pg. 278
Attachment: Strikeout Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding)
7.10. The owner applicant shall post emergency evacuation instructions and "house policies" within each guest Short-Term-Rental tenant bedroom. The house policies shall be included in the rental agreement, and shall be enforced by the ownerapplicant. At a minimum, the house policies should:
a. Reinforce the City of Redding’s Noise Standards (RMC Section 18.40.100) by establishing outdoor "quiet hours" between 10:00 p.m. and 7:00 a.m. to minimize disturbance to neighboring residences. Outdoor activities are prohibited dur ing “quiet hours.”
b. Require that guest Short-Term-Rental tenant vehicles be parked on the premises, not the street in compliance with this Section.
8.11. The property shall not be used to host non -owner applicant related weddings, parties, and other similar events.
12. On-site advertising signs or other displays indicating that the residence is being utilized as a short Short-term Term rentalRental, is are prohibited.
9.13. No person shall advertise a Short -Term Rental on any media platform when such advertisement or notice contains an inaccurate or misleading statement of the requirements of, or indicate amenities not allowed by the Redding Municipal Code.
10.14. A City business license shall be obtained and transient occupancy taxes paid in accordance with Chapter 4.12 as required. All advertising for any shortShort-term Term rental Rental shall include the City of Redding transient occupancy tax number and the City of Redding business license number assigned to the owner-applicant. With submittal of transient occupancy taxes, the operator applicant shall also submit a statement indicating the number of guest Short-Term-Rental tenant stays, and the number of guests Short-Term-Rental tenants for the reporting period.
11.15. The permit is not transferrable to a subsequent property owner or to another property.
12.16. This ordinance shall not be construed as waiving or otherwise impacting the rights and obligations of any individual, group, or the members of any homeowner’s association, as defined, to comply with or enforce CC&R’s and no permit shall be issued when it is demonstrated by substantial evidence that issuance of a permit will be in contradiction to any recorded CC&R’s or other record providing record notice of a restriction on the use of the property.
A.F. General Requirements - Vacation Rentals.
13.1. With the exception of items 1 through 4 6 listed in Section 18.43.180(E) above, the General Requirements provisions for Hosted Homestays shall apply to Vacation Rentals.
14.2. The following additional provisions shall also be applicable to Vacation Rentals which may be supplemented by requirements established by the Director with approval of the required Site Development Permit as necessary to maintain compatibility of the use with the surrounding properties.
a. A Vacation Rental shall not be permitted on properties as follows:
Packet Pg. 279
Attachment: Strikeout Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding)
1. Containing an Accessory Dwelling Unit with a building permit application submitted on or after January 1, 2020 in compliance with State Law governing Accessory Dwelling Units (Government Code Section 65852.2); or
2. Within one thousand (1,000) feet of an existing Vacation Rental on the same street; or
3. Within a five hundred (500) foot radius of an existing permitted Vacation Rental; or
4. At the discretion of the Director and notwithstanding subparagraph (iii ), within a three hundred (300) foot radius of an existing Vacation Rental when there is a natural buffer such as a major arterial, rail right -of-way, flood control channel or stream corridor between the Vacation Rental units.
b. The total number of Vacation Rentals in the City shall not exceed four hundred (400) rentals at any one time.
c. The owner shall be the applicant and shall be as follows:
1. A “natural person” or trustee of a living trust, thereby excluding all limited liability companies, partnerships, corporations or other entities which protect against, in whole or in part, the liability of its members; and
2. A Shasta County resident, as verified by a California Driver License or Identification Card issued by the California Department of Motor Vehicles.
a.d. A Vacation Rental shall not be rented to multiple separate parties concurrently unless the owner (or the primary occupant with the written permission of the owner) is residing on the premises during the rental period, in which case the vacation rental shall be limited to two unrelated parties.
e. The owner/applicant shall keep on file with the city City the name, telephone number, and email address of a local contact person who shall be responsible for responding to questions or concerns regarding the operation of the vacation Vacation rentalRental. This information shall be posted in a conspicuous locat ion within the vacation Vacation rental Rental dwelling. The local contact person shall be available twenty -four hours a day to accept telephone calls and respond physically to the vacation Vacation rental Rental within sixty forty-five minutes, if necessary. The name and contact information of the local contact person will be made available to the public. The contact information shall be kept current at all times.
f. No person shall have a financial interest in more than two (2) Vacation Rentals within the jurisdictional boundaries of the City of Redding at any one (1) time.
1. “Financial Interest” is defined as having an ownership interest in any entity which has a property interest in the fee title of a property hosting a Vacation Rental; having an ownershi p interest in or right to receive monetary compensation of any kind from a Vacation Rental; having a right to receive income of any kind resulting from a loan (i.e., repayment of principal or interest) or other instrument applicable to a property hosting a Vacation Rental; or having any right to derive monetary compensation from the Packet Pg. 280
Attachment: Strikeout Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding) provision of services to an owner, or said owners agent, of a Vacation Rental.
g. A Vacation Rental shall not be operated from a dwelling unit containing more than five (5) bedroo ms. A floor plan shall be submitted with the permit application identifying the bedrooms of the single-family residence. To qualify as a bedroom, the room shall contain a built-in closet.
h. Occupancy shall be limited to a maximum of two persons per rented room.
i. The maximum number of persons on the property at any time shall be limited to sixteen (16) persons.
j. Prior to issuance of a permit, a physical inspection of the dwelling unit and property shall be conducted by City staff.
b.k. Each operator shall maintain a log of each Short -Term-Rental tenant’s vehicle(s).
The log shall minimally consist of the rental period, the license plate, make, model, and color for each vehicle. The log shall be made available at any time upon request by the City.
c. Depending of the physical nature of the property and surrounding properties, the Director may allow, with approval of the site development permit, on -street guest parking.
F.G. Application Required.
1. Where a Site Development Permit is required by this Section, applicants for a shortShort- term Term rental Rental use shall apply for a permit in accordance with the provisions of Chapter 18.11, Common Procedures, and shall pay the application fee establish ed by resolution of the City Council and apply for a permit in accordance with the provisions of Chapter 18.11, Common Procedures, except as follow. :
a. Notices of the Vacation Rental application shall be sent to all owners of real property within one thousand (1,000) feet of the applicant’s property for a fifteen (15) day notification period. Should one or more owner(s) of real property within the notification area object in writing to the approval of the Vacation Rental or appeal the approval by the Direct or within the fifteen (15) day appeal period, the application shall be brought forth before the Planning Commission for consideration.
2. In making a determination to approve, conditionally approve, or deny and any application, including an application for renewal, for a Hosted Homestay or Vacation Rental, the Director, or appellate body as the case may be, may consider such factors , including, but not limited to, ability to comply with the provisions set forth in this Section, e vidence of operation in violation with this Section, complaints of neighbors, code enforcement activity, timeliness of business permit renewal, timeliness or non-payment of transient occupancy tax, proximity of the property to other vacation rentals, bed a nd breakfast establishments, group homes, and residential care facilities, and other neighborhood and site characteristics.
G.H. Permit RenewalSuspension and Termination.
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Attachment: Strikeout Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding)
1. The Director, or appellate body, shall apply the criteria set forth in Section 18.43.180(G)(2) in determining whether any permit issued pursuant to this Section shall be suspended or terminated. Notice shall be provided to the applicant pursuant to the procedure set forth in Section 18.11.060.
2. Appeal of the suspension or termination by the Director of a Vacation Rental Permit shall be in accordance with Section 18.11.090.
3. Appeal of the suspension or termination by the Director of a Hosted Homestay Permit shall be to the Planning Commission within ten days of service of the Director’s decision, and finally to the City Council within ten days of service of the Planning Commission’s determination. Decisions of the City Council are final, and all challenging a decision of the Director must exhaust all remedies set forth in this Section 18.43.180(H)(3) prior to bringing a challenge pursuant to Code of Civil Procedure section 1094.5.
4. Service shall be determined to be effective upon personal delivery or deposit in the United States mail postage prepaid, whichever is earlier.
Where a Site Development Permit is required by this Section, applicants for a short -term rental use shall apply for a permit in accordance with the provisions of Chapter 18.11, Common Procedures, and shall pay the application fee established by resolution of the City Council. In making a determination to approve, conditionally approve, or deny an application, the Director may consider such factors, including but not limited to, prior complaints from neighbors and code enforcement activity, timeliness of busines s license renewal, timeliness of Transient Occupancy Tax submittals, proximity of the property to other vacation rentals, bed and breakfast establishments, group homes, and residential care facilities, and neighborhood and site characteristics.
I. Legal Non-Conforming Uses and Amortization of Non-Conforming Uses.
1. No permit issued pursuant to this Section shall be considered as creating a vested property right to a renewal of said permit, and no condition of economic or personal investment or expectation of the same in an existing Vacation Rental or Hosted Homestay shall create any such vested property right.
2. Except as provided in Section 18.43.180(I)(3), no permit shall be issued which would cause a violation of any provision of this Section.
3. Those possessing a current, valid permit for a Vacation Rental issued pursuant to this Section which is effective as April 1, 2023, are excused from compliance with the requirements of Sections 18.43.180 (E)(7)-(8), 18.4 3.180(F)(2)(a)-(b), and
18.43.180(F)(2)(f). Notwithstanding the preceding, no permit shall be renewed as of April 1, 2026, without demonstration of compliance with all the terms and conditions of this Section.
4. As of April 1, 2026, or as soon thereafter as may feasibly be accomplished, all operatio ns in noncompliance with the site -distance and/or density requirements set forth in Section
18.43.180(F)(2)(a)-(b), shall be entered into a lottery or lotteries to determine which permit(s) will not be renewed due to non -compliance with the requirements set forth in Section 18.43.180(F)(2)(a) -(b). Those selected by lottery for continued operation of a Vacation Rental may, assuming compliance with all the provisions of this Section, continue in operation thereafter and apply for renewal of said permit thereafter without necessity of undergoing further random processes of selection. Those not selected for continued operation of a Vacation Rental may continue operation but only until such time as the Packet Pg. 282
Attachment: Strikeout Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding) permit issued has lapsed due to expiration. Thereafter, the use shall cease.
5. Exclusion from continued operation pursuant to Section 18.43.180(I)(4) shall not be construed as barring subsequent application.
6. As of April 1, 2026, and only as it relates to the density requirement set forth in Section
18.43.180(F)(2)(b), if the total number of Vacation Rentals falls below the number of four hundred (400), applications will be received and processed on a first come -first served basis. Thereafter, to remain eligible for consideration of an application, the applicant must reapply prior to the expiration o f one (1) year, and, assuming a timely reapplication, the date of application for purposes of receipt on a first come -first served basis shall be the date of the initial application.
H.J. Violations/RevocationsEnforcement and Remedies.
Enforcement of the provisions of this Section may include the civil and equitable remedies as permitted by state law , the issuance of a citation and fine, or other legal remedy as provided by Chapter 1.12 of the Redding Municipal Code. Upon notification by the City, any short Short-term Term rental Rental operating in violation of the requirements of this Section must t erminate operations immediately. Further, a Site Development Permit issued under the authority of this Section may be revoked in accordance with the procedures established in Chapter 18.11, Common Procedures.
Packet Pg. 283
Attachment: Strikeout Ordinance (6.1--Rezoning Application RZ-2022-02356, by the City of Redding)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept report and provide direction to staff regarding the formation and focus of a director’s ad- hoc committee for the purpose of dev eloping and recommending modifications to the Redding Municipal Code as it relates to short-term rentals; and if a committee is formed, the City Council should provide direction regarding the priority of ongoing efforts such as the Redding Riverfront Specific Plan, General Plan, and Tree Management Ordinance Committee.
Fiscal Impact
There is no fiscal impact related to accepting a report or the formation of a committee to recommend modifications to the short-term rental (STR) ordinance other than staff time.
Alternative Action
The City Council (Council) could choose not to form a Director’s committee and instead consider the item as a public hearing as published on this agenda.
Background/Analysis
At its meeting on October 18, 2022, the Council reviewed several recommendations for changes to the STR ordinance and directed staff to develop a new ordinance and present it to the Planning Commission and ultimately return to the Council for consideration.
The Planning Commission reviewed the ordinance on January 10, 2023 , and subsequently provided comments, recommendations, and proposed approvals to submit to the Council for consideration. During the Planning Commission meeting , and during public comment at recent Council meetings, the concept of a commit tee to study this issue was vocalized. Should a committee be formed, staff recommends that it be a Director’s committee (similar to those used MEETING DATE: February 21, 2023
ITEM NO. 9.4(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 9.4(a)--Consider report regarding the formation of a Director's Ad -hoc Committee to provid e input for potential modifications to the Redding Municipal Code (RMC) related to Short Term Rentals.
Jeremy Pagan, Development
Services Director/Bldg
Official
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Report to Redding City Council February 15, 2023
Re: 9.4(a)--Accept report and provide direction to staff regarding Short Term Rental Committee Page 2
for impact fees and rates) as it is generally nimbler and provides a better atmosphere for the free exchange of ideas.
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
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
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CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions:
(1) Approve the Concession Agreement (C -7180) with Todd Franklin, dba TF Investment Group, LLC, for a food truck court called “The Park” located at Carnegie Park for a ten (10) year term commencing on March 1, 2023 , and terminating on March 1, 2033, with monthly rent in the amount of $1,020 with two percent increases annually; (2) Authorize the City Manager to sign the Concession Agreement; and (3) Find that the adoption of t he Concession Agreement is categorically exempt from review under the California Environmental Quality Act Guidelines pursuant to Section 15301 of Title 14 of the California Code of Regulations – Existing Facilities, because renewal of the lease will not r esult in a significant impact on the environment and will not cause an expansion of the existing use.
Fiscal Impact
Should the City Council approve the Concession Agreement , the rental income will start at $12,240 a year with a two percent annual escala tor. The income from the arrangem ent will be modest; however, the agreement defers maintenance and some utilities costs to the concessionaire, and i t is anticipated that there will be a continued reduction in vandalism and calls for public safety.
Alternative Action
The City Council could decline to approve the concession agreement, which would leave in place the current agreement executed in October 2018 , or provide staff with a n a lternate direction.
MEETING DATE: February 21, 2023
ITEM NO. 9.6(d)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 9.6(d)--Consider Concession Agreement (C -7180) with TF Investment Group, LLC, for food and beverages at Carnegie Park.
Kim Niemer, Community
Services Director
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Report to Redding City Council February 15, 2023
Re: 9.6(d)--Carnegie Park Concession Agreement (C-7180) Page 2
Background/Analysis
At its March 21, 2017, meeti ng, the City Council approved a Concession Agreement with Todd Franklin for a food truck/trailer court operation called “The Park .” The Park, located in Carnegie Park, opened its doors in 2018 and has since provided a setting for a food truck dining area a nd live musical entertainment for the community. The original agreement has been amended twice, and a re-negotiated agreement was executed in 2018.
Over the last four years, staff has learned more about the marketplace and operational constraints. This revised agreement includes adjustments which reflect the current conditions.
The Community Services Advisory Commission received a presentation from Mr. Franklin in September 2022 and unanimously approved the recommendation for the modifications presented in the attached agreement at its February 7, 2023, meeting.
Highlights of the agreement that remain the same are as follows:
• Concessionaire shall pay m onthly rent of $1,020 with two percent increases annually;
• The Park shall operate at least four (4) days per week; • The number of allowable food trucks/trailers present at any time is a minimum of three and a maximum of seven;
• Concessionaire provides maintenance , including trash removal, landscape maintenance, and restroom maintenance; and
• Permission is required from the City to make any improvements or modifications to Carnegie Park.
Recommended modifications are:
• Weather conditions might result in cancelation of operation when outdoor temperatures reach 105 degrees or more, 60 degrees or less, or when one-inch or more of rain is accumulated in the 24 hours prior or when it is predicted to occur. • The agreement term is for ten (10) years, instead of five (5) rolling two-year terms as noted previously.
• Concessionaire can terminate the agreement with 120 days’ notice. City can terminate for cause.
• Concessionaire pays for electrical and future sewer utility expenses. City pays for water.
Environment Review
The adoption of this Concession Agreement is categorically exempt from environmental review under the Ca lifornia Environmental Quality Act pursuant to Section 15301 of Title 14 of the California Code of Regulations. This exemption permits the lease of existing public facilities when there is negligible or no expansion of use. The adoption of this Lease does not expand the use of the facility beyond what was originally contemplated in the lease dated April 4, 2017, as amended from time to time. This Lease likewise does not expand the use of the facility by means of an extension to its term.
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Report to Redding City Council February 15, 2023
Re: 9.6(d)--Carnegie Park Concession Agreement (C-7180) Page 3
Council Priority/City Manager Goals
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourag e investment in the community.”
Attachments
2023 Carnegie Park Concession Agmt (C-7180)
2018_C-7180 - Concession Agmt
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Attachment: 2023 Carnegie Park Concession Agmt (C-7180) (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 290
Attachment: 2023 Carnegie Park Concession Agmt (C-7180) (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 291
Attachment: 2023 Carnegie Park Concession Agmt (C-7180) (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 292
Attachment: 2023 Carnegie Park Concession Agmt (C-7180) (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 293
Attachment: 2023 Carnegie Park Concession Agmt (C-7180) (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 294
Attachment: 2023 Carnegie Park Concession Agmt (C-7180) (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 295
Attachment: 2023 Carnegie Park Concession Agmt (C-7180) (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 296
Attachment: 2023 Carnegie Park Concession Agmt (C-7180) (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 297
Attachment: 2018_C-7180 - Concession Agmt (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 298
Attachment: 2018_C-7180 - Concession Agmt (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 299
Attachment: 2018_C-7180 - Concession Agmt (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 300
Attachment: 2018_C-7180 - Concession Agmt (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 301
Attachment: 2018_C-7180 - Concession Agmt (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 302
Attachment: 2018_C-7180 - Concession Agmt (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 303
Attachment: 2018_C-7180 - Concession Agmt (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 304
Attachment: 2018_C-7180 - Concession Agmt (9.6(d)--Carnegie Park Concession Agreement (C-7180)) Packet Pg. 305
Attachment: 2018_C-7180 - Concession Agmt (9.6(d)--Carnegie Park Concession Agreement (C-7180))