Redding City Council
June 20, 2023

CAPITAL PROJECT
A permanent physical addition to the City’s assets including the design, construction and/or purchase of lands, buildings, facilities or major renovations. Capital projects do not include the direct purchase of equipment vehicles or machinery, unless part of a larger project.

CARB
California Air Resource Board

CASH BASIS OF ACCOUNTING
Basis of accounting that recognizes transactions or events when related cash amounts are received or disbursed.

CDBG
Community Development Block Grant

CERTIFICATE OF PARTICIPATION
A certificate which represents a proportionate participation in a tax-exempt lease agreement in which the lessee is a public entity. Rental payments are annually appropriated by the lessee.

CHARGES FOR SERVICES
Monies the City receives as payment for services provided, such as water, sewer, solid waste, and building permits.

COSTS
The amount of money or other consideration exchanged for property or services.

COST ALLOCATION REIMBURSEMENT
Charges assessed to enterprise funds for providing them administrative services, i.e., personnel services, finance services, attorney services etc.

CVB
Convention and Visitors Bureau

DEBT SERVICE
The sum of all the interest payments in a period plus the dollar amounts of any bonds scheduled to mature in the period.

DEPARTMENT
A sub-unit of the City representing a functional grouping of services provided, such as Police, Fire, Public Works, and Development Services.

PROPOSED
Packet Pg. 1307 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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DIVISION
A sub-unit of a department representing a specific grouping of activities within a department, such as Administration, Operations, or Services. In the 14-digit accounting code structure, the division is identified by the second three-digit number, e.g. 000-XXX-00-0000-00.

ENCUMBRANCES
An obligation of the City related to unperformed (executory) contracts for goods and services.

ENTERPRISE FUNDS
Funds established to account for operations that are operated as private business enterprises from user charges that support City services such as Water, Convention Center, Airport, Electric, Wastewater, and Solid Waste.

EXPENDITURES
Current operating expenses which require the current or future use of net current assets, debt service and capital outlays. The term “expenditures” in the BPPM is intended to mean budgetary expenditures. Expenditures are identified in the 14 digit accounting code structure as the last six digits, e.g., 000-000-00-XXXX-XX.

FISCAL YEAR
A 12 month period to which the annual operating budget applies and at the end of which the City determines its financial position and the results of its operations. The City defines the fiscal year as 12 month period from July 1 to June 30.

FUND
A fiscal and accounting entity with a self-balancing set of accounts, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restriction, or limitation. Fund is identified in the 14 digit accounting code structure as the first three digits, e.g., XXX-000-00-0000-00.

GENERAL FUND
The fund used to account for all financial resources except those required to be accounted for in another fund.

Primary source of monies come from local property and sales taxes that are used to pay for general City Services.

GENERAL GOVERNMENT
The administrative departments of the City, including the City Council, City Clerk, City Treasurer, City Manager, City Attorney, Administrative Services, and Personnel.

GOAL
The desired result of accomplishments within a given time frame

GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA)
An association of public finance professions founded in 1906 as the Municipal Finance Officer Association. The GFOA has played a major role in the development and promotion of GAAP for state and local government since its inception and has sponsored the Certificate of Achievement for Excellence in Financial Reporting Program since 1946.

PROPOSED
Packet Pg. 1308 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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HUD
Housing and Urban Development. The federal agency which oversees most community development and housing activities in which the city receives funding from the federal government.

IMPACT FEES
Fees charged to developers to cover, in whole or in part, the anticipated cost of improvements that will be necessary as a result of the development (e.g., parks, sidewalks).

IN LIEU PROPERTY TAXES
A payment that a “property owner” not subject to taxation makes to a government to compensate it for services that the “property owner” receives that normally are financed through property taxes. An example of a “property owner” would be the Electric Utility Fund.

INTERFUND TRANSFER
Monies that are transferred from one fund to another fund as an accounting procedure.

INTERNAL SERVICE FUNDS
Funds which account for goods and services provided by on City department to another City department.

Information Systems, Records Management, Risk Management, and Building Maintenance represent departments which are funded this way.

LOCAL TAXES
Monies the City receives from taxes levied and/or collected locally, primarily property, sales, and transient occupancy taxes.

LOW AND MODERATE INCOME HOUSING ASSET FUND (LMIHAF)
A fund created pursuant to California Assembly Bill No. 1484 (Community Redevelopment) to be used in accordance with applicable housing-related provisions of the Community Redevelopment Law.

MODIFIED ACCRUAL BASIS OF ACCOUNTING
Basis of accounting according to which (a) revenues are recognized in the accounting periods in which they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt and certain similar accrued obligations, which be recognized when due.

NON-DEPARTMENTAL EXPENDITURES
Operating expenditures that are City-wide and/or multi-departmental in nature.

NPDES
National Pollutant Discharge Elimination System

OBJECTIVE
The necessary steps that need to be accomplished to achieve a desired goal.

PROPOSED
Packet Pg. 1309 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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OTHER REVENUE
Monies not classified elsewhere, including miscellaneous revenue.

OPERATING BUDGET
Materials, supplies, and personnel costs for City services and activities conducted yearly.

PERFORMANCE MEASURES
Commonly used term for service efforts and accomplishments reporting.

PUBLIC EMPLOYEES RETIREMENT SYSTEM – PERS
A state or local governmental entity entrusted with administering one or more pension plans.

RABA
Redding Area Bus Authority.

RCAC
Redding Community Access Corporation
REU
Redding Electric Utility
RMU
Redding Municipal Utilities includes Solid Waste, Wastewater, Water, and Storm Drainage utilities.

RRA
Redding Redevelopment Agency.

REVENUES
The total amount of funds received in the current year from taxes, fees, charges, grants, contributions, permits, licenses, etc.

SHASCOM: Shasta Area Communication Agency. This is the county wide area dispatch agency.

SPECIAL ASSESSMENT FUNDS
Revenues generated through the formation of an assessment district for the financing of public improvements or services to benefit properties against which assessments are levied, such as assessment for street construction or flood control.

SPECIAL REVENUE FUNDS
Funds used to account for the proceeds of specific revenue sources that legally are restricted to expenditures for specific purposes like funds from Community Development Block Grants (CDBG), gas tax, and other Federal and State funds granted for specific community programs.

PROPOSED
Packet Pg. 1310 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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TMBID
Tourism Marketing Business Improvement District
TOT
Transient Occupancy Tax

TRUST AND AGENCY FUNDS
Monies which are held in trust by the City and whose use is restricted to the specific purpose for which the funds were received, such as park development funds and developer contributions.

PROPOSED
Packet Pg. 1311 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) K-10
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PROPOSED
Packet Pg. 1312 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) K-11

FUND DESCRIPTIONS

PROPOSED
Packet Pg. 1313 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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GOVERNMENTAL FUNDS
General Fund
The General Fund accounts for all financial resources of a governmental unit that are not legally required to be accounted for in another fund.

Special Revenue Funds
These funds account for the proceeds derived from specific revenue so8urces that re legally restricted to expenditures for specified purposes.

The City has the following Special Revenue Funds

1. Parking Fund - This fund was established to account for the receipts of parking-related revenues and expenditures.

2. Rolling Stock Replacement Fund – Established to account for funds designated for rolling stock and equipment replacement.

3. Gas Tax Street Improvement Fund – Established to record State and Federal Funds that are restricted to the construction and maintenance of the city’s street system. The Funds are transferred to the General Fund after the appropriate expenditures are made in the General Fund.

4. Local Transportation Fund – Established to record local transportation revenues that are restricted for maintenance of the street system of the city. The Funds are transferred to the General Fund after the appropriate expenditures are made in the General Fund.

5. Library Fund – Established to account for revenues and expenditures associated with the Library in Shasta County

6. Community Development Fund - This fund was established to account for programs financed by Community Development Block Grant Funds, HOME Grant Funds, and State/Local Grant Funds and Successor Housing Agency Funds.

7. Public Safety Fund - This fund was established to account for approximately $272,500 annually received from the State for Public Safety.

8. Special Development Fund - This fund was established to account for receipts and disbursements of development funds. Financing is provided by construction fees paid by developers and grants that are specific to assist with developm

PROPOSED
ent. Expenditures are restricted by element.

Packet Pg. 1314 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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Enterprise Funds
Enterprise funds account for operation: a) financed and operated in a manner similar to a private business enterprise. The intent of a governing body is that the cost of providing goods or services be financed primarily through user charges; and b) where the governing body has decided that periodic determination of revenues earned and expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.

The City has the following Enterprise Funds:

1. Airport Fund - This fund was established to account for the operations of the City’s airports.

2. Electric Utility Fund – This fund was established to account for the operations of the City’s electric utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

3. Water Utility Fund – This fund was established to account for the operations of the City’s water utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

4. Wastewater Utility Fund – This fund was established to account for the operations of the City’s wastewater utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

5. Storm Drainage Utility Fund- This fund was established to account for the operations of the City’s storm drainage utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

6. Solid Waste Fund - This fund was established to account for the operations of the City’s solid waste collection and disposal services, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

7. Tourism/Convention Fund - This fund was established to account for the operations of the Convention Center and Visitors Bureau.

PROPOSED
Packet Pg. 1315 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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Internal Service Funds
Used to finance and account for special activities and services performed by a designated department for other departments within the same governmental unit on a cost reimbursement basis.

The City has the following Internal Service Funds:

1. Fleet Maintenance Fund - This fund was established to account for all motorized and communications equipment utilization by City departments.

2. Information Technology and Geographic Information Fund - This fund was established to account for 1) the data processing activities utilized by all City departments, and 2) maintaining the City’s geographic information system.

3. Marketing/Communications/PR Fund - This fund was established to account for Marketing, Communications, and PR services utilized by all City departments.

4. Risk Management Fund - This fund was established to account for the self-insurance activities of the City associated with general liability and workers compensation.

5. Building Maintenance Fund - This fund was established to account for the day-to-day maintenance of buildings, including janitorial, air conditioning, gardening and upkeep.

6. Records Management - This fund was established to account for the cost associated with maintaining the City’s records system.

7. Employer Services - This fund was established to account for employment related costs such as union negotiations and hiring costs.

8. Communications- This fund was established to account for costs associated with maintaining the city’s telephone and radio systems.

9. Reprographics - This fund was established to account for the costs associated with printing, mailing, sorting, and delivery of main and in-house documents.

10. Volunteer Services - This fund was established to account for costs associated with the City’s volunteer worker program.

11. Employee Benefits Payroll - This fund was established to accumulate the City’s various payroll taxes and benefits, and then disburses them to the appropriate vendors and agencies.

12. Employee Benefits Group Insurance - This fund was established to account for the self-insurance activities of the City associated with medical, dental, prescription drug and vision care of the City employees, retirees and dependents.

13. Redding Municipal Utilities Administration - This fund was established to account for the administration unit over the City Utilities, except Electric. It also accounts for the cost of electrical technician services and the USA/Locate services of the City.

PROPOSED
Packet Pg. 1316 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) K-15

BUDGET POLICIES

PROPOSED
Packet Pg. 1317 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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CITY OF REDDING, CALIFORNIA

COUNCIL POLICY

SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER

EFFECTIVE

DATE PAGE
APPROPRIATION TRANSFER OF FUNDS 87-319 401 10/20/87 1

BACKGROUND
At the Council meeting of September 29, 1987, the City Council considered a proposal to authorize the City Manager to administratively transfer budget appropriations. This proposal was referred to staff by Council and further information was requested.

PURPOSE
The goal of the Administrative Transfer is to use the Budget document as a management plan by which to control expenditures and obligations of the City in advance.

POLICY

1. The City Council does hereby authorize the City Manager to administratively transfer appropriations

2. Appropriations shall be transferred only for purposes previously approved by the City Council

3. Appropriations shall not be transferred between Funds

4. Appropriations shall not be transferred between departments

5. Appropriations of up to $5,000 may be transferred to effect an emergency repair or replacement of equipment (amended 12/5/89).

6. The number of positions authorized by the City Council shall not be changed administratively.

PROCEDURE
The procedure for utilizing the Appropriation Transfer Request is provided in the City of Redding Budget Policies and Procedures Manual.

PROPOSED
Packet Pg. 1318 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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CITY OF REDDING, CALIFORNIA

COUNCIL POLICY

SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER

EFFECTIVE

DATE PAGE
GENERAL BUDGET GOALS 90-160 402 04/03/90 1

BACKGROUND
The City of Redding maintains a Budget for Operating, Debt Service, and Capital Improvements in accordance with the laws of the State of California.

PURPOSE
To establish purposes for utilizing a Budget, as follows:

1. Maintain the fiscal integrity of the City’s operating, debt service, and capital improvement budgets in order to provide services and to construct and maintain public facilities, streets, and utilities.

2. Maintain a responsible and prudent fiscal condition and high bond rating to minimize long-term interest expense when financing capital improvements with an ongoing, systematic bonding program.

3. Prepare and refine written goals and policies to facilitate preparation of financing, spending, and performance plans for the City.

4. Coordinate decision-making for the capital improvement budget with the operating budget to make effective use of the City’s limited resources for operating and maintaining facilities.

5. Prepare budget data for elected officials in a form that will facilitate budget decisions.

6. Prepare and evaluate activity performance plans that relate to financing and spending plans in the City budget.

7. Encourage citizen involvement in the budget decision-making process through public hearings and informal meetings.

POLICY
The City will adhere to purposes stated for utilizing a Budget.

PROCEDURE
Specific procedures to achieve the purposes stated above are provided in the City of Redding Budget Policies and Procedures Manual.

Amended April 15, 2008, by Resolution No. 2008-35

PROPOSED
Packet Pg. 1319 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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CITY OF REDDING, CALIFORNIA

COUNCIL POLICY

SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER

EFFECTIVE

DATE PAGE
BUDGET FINANCING GOALS 90-160 403 04/03/90 1

BACKGROUND
To develop a Budget, several specific assumptions need to be stated to facilitate the financing of the Budget.

PURPOSE
To establish the financing assumptions for the development of the Budget.

POLICY
It is the policy of the City Council of the City of Redding:

1. To finance essential City services which have a city-wide benefit in the budget with revenue sources which are generated from a broad base (i.e., property taxes, State and Federal Aid, assessments, and franchise fees); finance responsive services with dedicated revenue and user fees which directly relate to the level of service provided; and minimize General Fund financing assistance to those responsive service activities which have a common-good community benefit but cannot totally finance expenses with user fees.

2. To minimize the need for property tax financing by controlling costs and by seeking alternative financing for City services which focus on user fees for responsive services and by the upgrading and/or enhancement of the property tax base.

3. To refine exiting assessment financing formulas and user fee rate structures to more accurately charge the costs of service provided to the benefitting property owners and customers served.

4. To support Federal and State legislation that provides property tax relief and direct aid to cities, without reliance on regressive forms of taxation, while striving to eliminate funding of regional and State responsibilities at the local level. Oppose legislation which imposes local service mandates without Federal, State, or regional funding.

5. To direct resources to finance services provided by the City and to minimize support for services primarily and appropriately financed by other levels of government.

Amended April 15, 2008, by Resolution No. 2008-35

PROPOSED
Packet Pg. 1320 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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CITY OF REDDING, CALIFORNIA

COUNCIL POLICY

SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER

EFFECTIVE

DATE PAGE
BUDGET SERVICE LEVEL GOALS 90-160 404 04/03/90 19

BACKGROUND
To develop a Budget, several specific assumptions need to be stated to facilitate the budget development process.

PURPOSE
To facilitate the budget development process by establishing base-level procedures for the development of the Budget.

POLICY
It is the policy of the City Council of the City of Redding:

1. That budget decisions to increase service levels or add a new program will be financed with either a new revenue source, rate adjustment, or by a deliberate reduction in, or elimination of, existing services.

2. That decisions to reduce service levels or eliminate programs will be based on city-wide priorities and needs when revenue sources are inadequate to maintain existing services at current program levels.

3. To maintain programming flexibility to address priority user needs based on historical usage and demographic trends within service areas, if a service is provided at many facilities throughout the city and a service-level reduction is necessary.

4. To incorporate self-reliance in both day-to-day operation of the City and the development of its long-range plans. A self-reliant City makes greater use of its own resources, takes care of its own, and creates its own opportunities for a better life. More specifically, “self-reliance” should:
o Encourage community involvement;
o Foster economic development to enhance the tax base and retain and create employment opportunities;
o Strengthen our neighborhoods through service delivery and cooperation with neighborhood groups; and
o Strengthen City government as an organization dedicated to serving the people of Redding.

PROPOSED
Packet Pg. 1321 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-20

CITY OF REDDING, CALIFORNIA

COUNCIL POLICY

SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER

EFFECTIVE

DATE PAGE
BUDGET SERVICE LEVEL GOALS 90-160 404 04/03/90 19

5. To avoid duplication of services with other units of government and seek joint-use opportunities for public facilities with both governmental units and non-profit organizations when effective service delivery can be provided at less cost or no cost to the City.

6. To recognize that City employees are City government’s most valuable asset and that, as such, their concerns, participation, and morale are crucial to delivering high quality, efficient services to the residents and taxpayers of Redding.

7. To employ good management practices when planning for service delivery by including in budget requests money to pursue activities, such as:
o Office automation and computer applications that increase productivity; o Equipment modernization;
o Work-hour simplification;
o Risk management/employee safety;
o Preventative maintenance;
o Energy conservation;
o Life-cycle costing and purchasing of equipment;
o Lease-purchase options for high-cost equipment purchases which reduce operating expenses;
o Performance planning, reporting, and evaluation;
o Employee training; and
o Competitive bidding for services.

8. To modernize the physical and organizational structure of the City departments and offices to facilitate better management of resources. Create an environment which encourages innovative problem-solving and pursuit of opportunities to improve service delivery within existing budgets.

Amended April 15, 2008, by Resolution No. 2008-35

2 PROPOSED
Packet Pg. 1322 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
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CITY OF REDDING, CALIFORNIA

COUNCIL POLICY

SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER

EFFECTIVE

DATE PAGE
ADOPTION OF THE BIENNIAL BUDGET 90-160 405 04/03/90 1

BACKGROUND
In accordance with State Law, the City has no legal obligation to adopt a comprehensive financial plan.

However, good business practice and sound financial prudence would indicate that the City of Redding adopt a comprehensive financial plan on at least a biennial basis.

The comprehensive financial plan for the City of Redding is composed of spending, financing, and performance plans for three types of budgets: operating, debt service, and capital improvement. All budgets must be sound: the spending plan (expenditures and transfers out) must equal or be less than the financing plan (revenues, transfers in, and use of fund balance).

PURPOSE
To establish a biennial comprehensive financial plan.

POLICY
It is the policy of the City Council of the City of Redding:

That the City Manager shall propose to City Council at least every other year prior to the beginning of the fiscal year a comprehensive financial plan for the next fiscal year or two fiscal years (July 1 to June 30).

After considering the City Manager’s recommendations, the Mayor and City Council shall adopt the budget.

Amended April 15, 2008, by Resolution No. 2008-35

PROPOSED
Packet Pg. 1323 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-22

CITY OF REDDING, CALIFORNIA

COUNCIL POLICY

SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER

EFFECTIVE

DATE PAGE
BUDGET AMENDMENTS POLICY 90-160 406 04/03/90 1

BACKGROUND
From time to time, the Budget may need adjustment to respond or meet changing conditions or circumstances. This is accomplished by amending the Budget, either administratively by the City Manager or by the City Council upon the recommendation of the City Manager.

PURPOSE
To amend the Budget as may be required during the fiscal year.

POLICY
It is the policy of the City Council of the City of Redding:

1. Budgeted appropriations may be increased, decreased, or have the purpose for which they are provided changed by Council resolution.

2. The City Manager may move by appropriation transfer part or all of any unencumbered appropriation balance within a department, agency, or authority. Upon the recommendation of the City Manager, Council may by resolution transfer part or all of any unencumbered appropriation balance from one department, agency, or authority to another.

3. If the City Manager reports to Council that the revenue available will be insufficient to meet the amount appropriated, the Mayor and City Council shall take such actions as they deem necessary to prevent or minimize any deficit, and for that purpose they may reduce by resolution one or more appropriations.

Amended April 15, 2008, by Resolution No. 2008-35

PROPOSED
Packet Pg. 1324 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-23

CITY OF REDDING, CALIFORNIA

COUNCIL POLICY

SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER

EFFECTIVE

DATE PAGE

REBUDGET OF PRIOR YEAR
APPROPRIATIONS 91-275 409 07/16/91 1

BACKGROUND
The City of Redding adopts a Budget at the beginning of each budget cycle. Certain items budgeted in the prior year are rebudgeted as a carryover. These items are difficult to identify for numerous reasons, and each year a certain number are overlooked in the budget process. This policy would authorize the City Manager to routinely carry over items previously approved, but not rebudgeted.

PURPOSE
This policy would authorize the City Manager to rebudget previously approved and budgeted items in accordance with Council guidelines.

POLICY
It is the policy of the City Council of the City of Redding to authorize the City Manager to rebudget certain items as follows:

1. The item(s) was previously considered and budgeted by Council Resolution.

2. The item(s) was not rebudgeted through the adoption of the Budget or by Exhibit A of the Resolution adopting the Budget.

3. The amount of the appropriation does not change, nor does the amount of the funding source change.

4. There is no impact upon fund reserves.

5. The purpose for which the item(s) was rebudgeted does not change.

In the event the item(s) does not meet these conditions, it must be approved by the City Council and may not be rebudgeted as part of this policy.

PROCEDURE
The procedure for utilizing the Rebudget of Prior Year Appropriations is provided in the City of Redding Budget Policies and Procedures Manual.

Amended April 15, 2008, by Resolution No. 2008-35

PROPOSED
Packet Pg. 1325 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-24

CITY OF REDDING, CALIFORNIA

COUNCIL POLICY

SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER

EFFECTIVE

DATE PAGE
FISCAL IMPACT STATEMENTS 92-50 411 2/4/92 1

BACKGROUND
Many actions taken by the City government have a fiscal impact, either positive or negative, and yet these impacts have not in the past always been formally evaluated. Projects may be undertaken, commissions established, studies assigned to staff, and workload otherwise affected without an attempt to measure the effect such action may have on the City financially. While this is not atypical of cities— and governments generally—a more responsible posture, generating greater accountability to the public we serve, would be to require more measurement or estimate of financial impact of every major action we take or consider.

PURPOSE
The purpose of this policy is to ensure a higher level of responsibility, accountability, and fiscal integrity for the City government by requiring a fiscal impact statement to accompany every major proposal considered by the City Council.

POLICY
It is the policy of the Redding City Council to require the preparation of a fiscal impact statement to accompany every major proposal to be considered by the City Council. Affected by this policy would be:

1. The best available estimate of the capital outlay cost of projects;

2. The best available estimate of operating costs of capital projects, extended over ten years;

3. The operating cost (and revenues) of newly proposed programs;

4. The cost of servicing commissions;

5. Estimates of the cost of employee compensation packages being negotiated or otherwise considered, including benefits;

6. Operating costs (and realistic labor savings, if anticipated) of equipment proposed for acquisition.

PROCEDURE
No prescribed and uniform format of such statements will fit all situations, and so none is prescribed.

The form of the statement should be tailored, however, to provide the City Council with the basic information necessary to reach a sound decision.

It is anticipated that during the transitional period (the first year or two this policy is in effect), the City Council will be evaluating currently-existing programs with the objective of determining areas in which program costs that have developed over the years may no longer be justified.

PROPOSED
Packet Pg. 1326 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-25

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ESTABLISHMENT OF LONG-RANGE

FINANCIAL PLANS AND UNRESERVED
CASH BALANCE 92-110 412 03/17/92 1

BACKGROUND
Fiscal stability is an important factor to any city. The budget decisions made today will have an impact on the City’s future in not only what is accomplished, but what resources are available in the future.

Being concerned with only making ends meet this year, with little planning about what the future will hold is shortsighted. Many governments become too shortsighted with their budget process, which causes crisis for them down the road. The decisions made today could have a profound impact on the City’s future.

PURPOSE
Just as a city must look ahead at land use needs, it must also forecast its financial needs in order to avoid serious deficiencies or over-commitments to programs and projects. Establishing a long-range financial plan and minimum reserve levels will assist in accomplishing the City’s goal and objectives and provide for orderly provisions of services to the citizens of Redding.

POLICY
It is the policy of the City Council of the City of Redding:

1. To prepare long-range financial plans for each of the City’s major funds and update those plans at least biennially.

2. To maintain at a minimum an estimated ten percent of projected expenditures unreserved cash balance at year end throughout the long-range financial plan.

3. When approval of additional appropriations is requested of Council the effect on the long-range financial plan should be considered.

4. A requested appropriation that would cause the estimated end of year cash reserve in any year of the long-range financial plan to drop below ten percent needs to be submitted with a plan to insure the fiscal stability of the major fund’s financial position.

5. During the budget process, the City Council will evaluate the cash balance to determine if adequate levels of cash are maintained based on the economic conditions of the area or other circumstances.

Amended April 15, 2008, by Resolution No. 2008-35

PROPOSED
Packet Pg. 1327 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-26

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ROLLING STOCK REPLACEMENT
FUND 95-178 416 08-01-95 1

BACKGROUND
The City has established a Rolling Stock Replacement Fund to accumulate resources to purchase rolling stock (i.e., vehicles and related equipment). The purpose of establishing the Rolling Stock Replacement Fund was to manage rolling stock resources in the most efficient manner possible. To provide departments with the mechanism to manage their rolling stock the City needs to establish a formal policy regarding appropriation of funds for rolling stock.

PURPOSE
This policy would authorize department heads, with the City Manager’s approval, to transfer funds accumulated in the Rolling Stock Replacement Fund to the originating division’s budget where the funds could be expended for rolling stock.

POLICY
The City of Redding has established a Rolling Stock Replacement Fund to accumulate resources to purchase rolling stock. The Rolling Stock Replacement Fund shall accumulate resources from the sale of rolling stock, interest earnings and cash transfers from the various divisions of the City. All cash transfers to the Rolling Stock Replacement Fund need Council approval either in the annual budget or by amendment to the budget. A separate accounting of each division’s transfers in, sale of rolling stock, interest earnings and transfers out will be maintained for the Rolling Stock Replacement Fund.

No rolling stock will be purchased in the Rolling Stock Replacement Fund. To purchase rolling stock, cash will be transferred from the Rolling Stock Replacement Fund to the originating division’s budget.

All cash transfers to the Rolling Stock Replacement Fund, along with revenue generated from the sale of rolling stock and interest earnings, may be transferred back to the originating division’s budget and expended for rolling stock in that division at the request of the department director. Council approval for the appropriation of funds is not necessary if the division’s request does not exceed the cash accumulated in the Rolling Stock Replacement Fund.

PROCEDURE
Transfers from the Rolling Stock Replacement Fund to the originating division’s budget via an appropriation transfer request (reference Council Policy 401).

PROPOSED
Packet Pg. 1328 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-27

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SUPPLEMENTAL
BUDGET APPROPRIATIONS 96-051 417 03-19-96 1

BACKGROUND
Departments are authorized to make expenditures up to the amount appropriated by the City Council. If expenditures are anticipated to exceed the amount appropriated, departments must seek a supplemental appropriation from the City Council. There are times, however, when additional expenditures result in an equivalent amount of additional revenues (examples include donations, grants, and mutual aid to other jurisdictions that are reimbursable). In these instances, there is no net impact to the City’s budget.

Under these circumstances, it would be more efficient for the City Manager to amend the budget so long as the increase in expenditures will not exceed the amount of revenue to be generated.

PURPOSE
The purpose of this policy is to authorize the City Manager to amend the budget in those instances where an increase in expenditures will be completely offset by the amount of revenue to be generated as a result of that increase.

POLICY
It is the policy of the City Council of the City of Redding to authorize the City Manager to amend the budget in those instances where an increase in expenditures will be completely offset by the amount of revenue to be generated as a result of that increase.

PROCEDURE
Budget amendments such as those described above shall be approved in the same manner as Appropriation Transfer Requests (reference Council Policy 401).

PROPOSED
Packet Pg. 1329 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-28

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APPROPRIATION TRANSFERS
BETWEEN YEARS 99-94 420 7/1/99 1

BACKGROUND
Departments have been authorized to make expenditures up to the amount appropriated by the City Council. If expenditures are anticipated to exceed the amount appropriated usually the department must seek a supplemental appropriation from the City Council. Now that the City has adopted a two-year budget there may be times when it would be beneficial for a department to move an appropriation from the first year to the second year or to move an appropriation from the second year to the first year of the two-year budget. In these instances, there is no net impact to the City’s budget.

PURPOSE
To allow department directors to manage their budget in the most efficient and effective way, the following policy would authorize the department heads, with the City Manager’s approval, to transfer appropriations between years of an adopted two-year budget.

POLICY
It is the policy of the City Council of the City of Redding to authorize the department heads, with the City Manager’s approval, to administratively transfer appropriations between years of an adopted twoyear budget. The following conditions shall be met for all administrative transfers between years:

1. Appropriations shall be transferred only for purposes previously approved by the City Council.

2. Appropriations shall not be transferred between funds.

3. Appropriations shall not be transferred between departments.

4. The number of positions authorized by the City Council shall not be changed administratively.

PROCEDURE
Appropriation transfers such as those described above shall be approved in the same manner as Appropriation Transfer Requests (reference Council Policy 401).

PROPOSED
Packet Pg. 1330 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-29

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RESERVE BALANCES IN
INTERNAL SERVICE FUNDS 99-94 421 7/1/99 1

BACKGROUND
The City of Redding has established internal service funds to provide a useful means of accounting where it is advantageous to centralize the provision of certain goods and services provided to City departments and divisions. An internal service fund should provide services to other departments and divisions on a cost-reimbursement basis.

PURPOSE
Internal service funds are used to account for services provided on a cost-reimbursement basis (i.e., without profit or loss). Thus surpluses in an internal service fund may be an indication that other departments and divisions were over charged for the goods or services they received. To insure departments and divisions are not over charged by internal service funds for goods and services received, the City has implemented the following policy:

POLICY
Internal service funds cash reserves will be reviewed by the Finance Division after the end of a fiscal year. Finance will journal voucher cash reserves in excess of 5.0% in internal service funds back to the originating division or department unless one of the following conditions applies:

1. The excess cash does not exceed $20,000.

2. A justification for retaining the excess balance has been included in the budget issues and approved by the City Manager.

3. A justification separate from the budget process has been presented to and approved by the City Manager.

4. The fund is a self-insurance fund. Self-insurance funds have been established to account for potential risks and payments are not treated on a cash reimbursement basis. In the self insurance funds cash will be returned to the originating divisions when retained earnings is in excess of expected potential liabilities, as determined by the Finance Division and approved by the City Manager, plus a 5% reserve of current appropriations for unexpected expenditures. When funds in a self-insurance fund exceed the above criteria, cash shall be refunded to the originating divisions unless conditions 1, 2 or 3 above applies.

The adjustment to cash reserves shall not cause a deficit fund balance in any fund, unless the deficit is a result of depreciation and future assets will be replaced by contributions from other funds.

PROPOSED
Packet Pg. 1331 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-30

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EQUIPMENT REPLACEMENT FUND 2001-103 422 7/1/01 1

BACKGROUND
The City has established a Replacement Fund to accumulate resources to purchase certain equipment.

The purpose of establishing the Equipment Replacement Fund is to manage equipment resources in the most efficient manner possible. In order to provide departments with the mechanism to manage their equipment and accumulate resources to replace certain equipment, the City needs to establish a formal policy regarding appropriation of funds for equipment.

PURPOSE
This policy would authorize department heads, with the City Manager’s approval, to transfer funds accumulated in the Equipment Replacement Fund to the originating division’s budget where the funds could be expended for equipment.

POLICY
The City of Redding has established an Equipment Replacement Fund to accumulate resources to purchase equipment. The Equipment Replacement Fund shall accumulate resources, interest earnings and cash transfers from the various divisions of the City. All cash transfers to the Equipment Replacement Fund need Council approval either in the annual budget or by amendment to the budget.

A separate accounting of each division’s transfers in, interest earnings and transfers out will be maintained for the Equipment Replacement Fund.

No equipment will be purchased directly from the Equipment Replacement Fund. In order to purchase equipment, cash will be transferred from the Equipment Replacement Fund to the originating division’s budget. All cash transfers to the Equipment Replacement Fund, along with interest earnings, may be transferred back to the originating division’s budget and expended for equipment in that division at the request of the department director. Council approval for the appropriation of funds is not necessary if the division’s request does not exceed cash accumulated in the Equipment Replacement Fund.

PROCEDURE
Transfers from the Equipment Replacement Fund to the originating division’s budget via an appropriation transfer request (reference Council Policy 401).

PROPOSED
Packet Pg. 1332 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-31

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TRANSFERS BETWEEN FUNDS 2003-164 423 10-21-03 1

BACKGROUND
The City has established a Contingency Reserve Fund to segregate funds for future expenditures contained
in the General Fund’s Ten-Year Plan or other purposes as approved by the City Council. A key responsibility of city government is to manage resources as efficiently and effectively as possible. To assist in managing the resources of the General Fund and the Contingency Reserve Fund effectively and efficiently there may be times when it would be beneficial to make transfers between these two funds. In these instances there would be no net impact to the City’s budget or Ten-Year Plan.

PURPOSE
To allow City staff to manage City resources in the most efficient and effective way, the following policy would authorize the Finance Officer, with the City Manager’s approval, to make transfers between the General Fund and the Contingency Reserve Fund.

POLICY
It is the policy of the City Council of the City of Redding to authorize the Finance Officer, with the City Manager’s approval, to administratively make transfers between the General Fund and the Contingency Reserve Fund. The following conditions shall be met for all administrative transfers between these funds:

1. Transfers shall only be for purposes previously approved by the City Council in the General Fund’s Ten-Year Plan or other purposes as approved by the City Council.

2. There shall be no net effect on the General Fund’s Ten-Year Plan or the City’s overall budget.

3. There shall be no net change in appropriations.

PROCEDURE
Transfers such as those described above shall be approved in the same manner as Appropriation Transfer Requests (reference Council Policy 401).

Amended on June 1, 2004, by Resolution No. 04-87

PROPOSED
Packet Pg. 1333 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-32

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DEBT POLICY 08-36 426 04/15/08 1

SHORT-TERM OPERATING DEBT POLICY
The expenses associated with the day-to-day operations of the City will be covered by current revenues.

However, because the City receives the majority of its property tax revenues and a substantial portion of its sales tax revenue at two (2) times during the year and other revenues may fluctuate during the year, the City may experience temporary cash shortfalls. In order to finance these temporary cash shortfalls, the City may incur short-term operating debt [typically, tax and revenue anticipation notes (TRANs)].

The amount of the short-term operating debt will be based on cash flow projections for the fiscal year and will comply with applicable Federal and State regulations. Operating revenues will be pledged to repay the debt, which will generally be repaid within fifteen months or less. The costs of such borrowings will be minimized to the greatest extent possible.

LONG-TERM CAPITAL DEBT POLICY
The long-term capital debt policy sets the parameters for issuing debt and provides guidance in the timing and structuring of long-term debt commitments. This policy does not apply to the following types of transactions and situations: land-based financings (typically, assessment districts); debt issued by the redevelopment agency; payroll related liabilities (e.g., pension plans and other post employment benefits); landfill closure and postclosure related liabilities; and risk management related liabilities.

The City will consider the issuance of long-term obligations under the following conditions:

1. The City will use debt financing only for capital improvement projects and equipment purchases, and generally under the following circumstances:
a. When the project is or will be included in the City's budget. b. When the project is not included in the City's budget but it is an emerging need whose timing was not anticipated during the budget preparation cycle, the planned financing of the project had not been completed during the budget cycle, or it is a project mandated immediately by State or Federal requirements.
c. When the project's useful life, or the projected service life of the equipment, will be equal to or exceed the term of the financing.
d. When there are revenues sufficient to service the debt, whether from project revenues or other revenues sources.

PROPOSED
Packet Pg. 1334 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-33

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DEBT POLICY 08-36 426 04/15/08 1
e. When the repayment of the debt can be demonstrated by being included in a current long-range financial plan for all funds affected.

2. The following criteria will be used to evaluate pay-as-you-go versus long-term debt financing in funding capital improvements and equipment:
a. Factors which favor pay-as-you-go:
(1) Current revenues and adequate fund balances are available. (2) Project phasing is feasible.
(3) Debt levels would adversely affect the City's credit rating. (4) Market conditions are unstable or present difficulties in marketing. b. Factors which favor long-term financing:
(1) Current revenues and fund balance are not adequate to pay for the capital improvements or equipment.
(2) Projected revenues available for debt service are considered sufficient and reliable so that long-term financing can be marketed with an appropriate credit rating.
(3) The project for which financing is being considered is of the type that will allow the City to maintain an appropriate credit rating.
(4) Market conditions present favorable interest rates and demand for municipal financings.
(5) A project is mandated by State or Federal requirements and current revenues and fund balances are insufficient to pay project costs. (6) A project is immediately required to meet or relieve capacity needs. (7) The life of the project or asset financed is three years or longer. 2 PROPOSED
Packet Pg. 1335 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-34

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DEBT POLICY 08-36 426 04/15/08 1

3. The following will be considered in evaluating appropriate debt levels:
a. General Fund supported debt service will generally not exceed 10% of total budgeted expenditures, without specific City Council approval to exceed the 10% limitation. b. The General Fund may be used to provide back-up liquidity to improve the viability of a self-supported debt issue (excluding land-based or redevelopment agency financings), but only if the General Fund is not exposed to significant risk of loss of assets or impairment of liquidity. This evaluation of risk will consider such things as the following:
(1) Volatility and collectibility of the revenue source identified for repayment of the debt.
(2) The likelihood the General Fund would be reimbursed within one year for any payments it could need to make in its role as back-up guarantor.

4. The City will follow all State and Federal regulations and requirements regarding bond provisions, issuance, taxation and disclosure.

5. The adoption of resolutions of intent will be considered whenever a bond issuance is contemplated to increase the flexibility related to funding costs related to the project (e.g., project development costs, architectural costs, studies, etc.).

6. Typically the costs incurred by the City, such as bond counsel, underwriter fees, financial advisor fees, printing, underwriters' discount, will be charged to the bond issue to the extent allowable by law. Project design and construction costs, to the extent included in the project financing plan and allowable by law, should be reimbursed from bond proceeds.

7. The City may seek credit enhancements, such as letters of credit or insurance, when beneficial or cost-effective.

8. The City will monitor compliance with bond covenants and adhere to Federal arbitrage regulations. Any instances of noncompliance will be reported to the City Council.

9. The City will seek to maintain or improve its current bond rating and will not ordinarily consider long-term debt that, through its issuance, would cause the City's bond rating to be lowered.
3 PROPOSED
Packet Pg. 1336 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-35

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DEBT POLICY 08-36 426 04/15/08 1

10. The City will maintain good communications with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond prospectus (Official Statement).

11. The City may obtain financing through a competitive basis or negotiated basis. If the City uses a negotiated financing, the City will perform steps necessary to ensure that the negotiated financing is competitive with similar current-long term financings.

12. The City will select financial advisors and/or underwriters on a competitive basis; these advisors may be retained for up to seven years to provide continuity and allow them to develop an understanding of the City's needs. Trustees and/or paying agents will be selected by competitive bid.

13. Interfund borrowing will be considered to finance projects on a case-by-case basis, only when sufficient funds are available to meet projected future expenditures in the fund making the loan. Interfund borrowing may be used when it would reduce costs of interest, debt issuance, and/or provide other benefits to the City.

14. The term of long-term debt instruments will not exceed the legal life of the asset or thirty years, whichever is less.

15. Bond proceeds will be invested in accordance with the provisions of the bond indenture.

Funds set aside for debt service will only be used for that purpose.

16. Refundings will be considered to reduce interest costs, principal outstanding, or to eliminate restrictive debt covenants. Pooled financings with other government agencies will be considered, as appropriate.
4 PROPOSED
Packet Pg. 1337 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) K-36
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PROPOSED
Packet Pg. 1338 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) K-37

REDDING AREA BUS AUTHORITY

PROPOSED
Packet Pg. 1339 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

REDDING AREA BUS AUTHORITY
FY 2023-25 PROPOSED BUDGET

EXPENSES
2022‐23 2022‐23 2022‐23 2023‐24 2023‐24 2024‐25 2024‐25 Inflation Amended Adj. Adj. Budget Projected + (‐) Projected + (‐) Factor 1950 Administrative Costs  414,600 $            414,600 $         694,640 $         280,040 $         706,360 $            11,720 $            5.00% Xcharges ‐ Planner, Finance, Admin and Police 2252 Security Contracts 180,000 $            181,600 $         194,000 $         12,400 $            213,400 $            19,400 $            10.00% Security Contract ‐ DTC, other 2253 Professional Services/Consult 26,530 $              25,000 $            26,000 $            1,000 $              27,100 $              1,100 $              4.00% Consultation Services. Audit fees. 2257 Landscape Maintenance 10,610 $              5,000 $              5,100 $              100 $                 5,300 $                 200 $                 2.00% Landscape materials for facilities2274 Vehicle Fuel/Lubricant 682,910 $            960,000 $         960,000 $         ‐$                  1,017,600 $         57,600 $            6.00% 2274 Vehicle Fuel/Lubricant 682,910 $            100 $                 100 $                 ‐$                  100 $   ‐$                  0.00%2276 Vehicle Repair/Maintenance 10,770 $              50,000 $            51,500 $            1,500 $              53,100 $              1,600 $              3.00% 2277 Vehicle Tires/Tubes 74,290 $              65,000 $            68,400 $            3,400 $              71,200 $              2,800 $              4.00%2279 Vehicle Parts/Supplies 364,140 $            300,000 $         306,000 $         6,000 $              312,200 $            6,200 $              2.00% 2291 Utility Expense 78,800 $              82,000 $            80,000 $            (2,000) $             81,600 $              1,600 $              2.00% Maintenance Facility, DTC and South Fork Mountain utilities2311 Communication Expense 45,620 $              25,000 $            65,600 $            40,600 $            67,000 $              1,400 $              2.00% RABA Phones/Radios/Internet & Equipment2331 Purchased Transportation 4,392,110 $         4,390,605 $      4,532,200 $      141,595 $         4,713,500 $         181,300 $         4.00% Contract Operator 2332 Contract Services 26,010 $              27,000 $            27,600 $            600 $                 28,200 $              600 $                 2.00% Misc. contracts for Pest Control, HVAC, Electric, etc. 2443 Printing Outside 20,810 $              20,400 $            22,000 $            1,600 $              23,000 $             1,000 $              6.00% Route maps, transit brochures, passes, etc. 2444 Operating Materials/Supplies 11,560 $              27,000 $            27,600 $            600 $                 28,200 $              600 $                 2.00% General operating materials and supplies2447 Software 90,180 $              78,600 $            53,200 $            (25,400) $          54,800 $              1,600 $              3.00% Real‐Time application and vehicle location TSP (Service fee every 2 years per contract) 2451 Permit Fees 2,130 $                 2,000 $              2,100 $              100 $                 2,200 $                 100 $                 2.00% NPDES fees for permits and monitoring2472 Advertising/Promotions 36,420 $              35,000 $            35,700 $            700 $                 36,500 $              800 $                 2.00% Marketing/media advertising‐newspaper/radio/TV2473 Books/Dues/Subscriptions 18,580 $              15,300 $            15,700 $            400 $                 16,100 $              400 $                 2.00% Dues for transit organizations, subscriptions, etc.2475 Insurance Expense 57,680 $              61,800 $            64,900 $            3,100 $              70,000 $              5,100 $              5.00% E/O for Board, Liability, Facilities2480 Other Allowances 2,600 $                 2,000 $              2,040 $              40 $                    2,100 $                 60 $                    2.00% Allowance for Board member monthly meetings2599 Building Repair/Maintenance 10,510 $              11,300 $            11,600 $            300 $                 11,900 $              300 $                 2.00% Building repairs‐‐windows, minor repairs, etc. 2641 Civic Center Rent 16,110 $              16,500 $            16,500 $            ‐$                  16,500 $              ‐$                  0.00% No charges fter 24/25, RABA's division changed from PW to CM's Office.2671 Travel Expenses 8,170 $                 5,000 $              10,000 $            5,000 $              10,300 $              300 $                 3.00% Travel for conferences/seminars 2001 Cost Allocation Plan 61,120 $              61,120 $            48,090 $            (13,030) $          49,530 $              1,440 $              5.00% Interdepartmental charges/City allocation support 2104 Fix Charge ‐ Information Systems 69,950 $              69,950 $            110,350 $         40,400 $            85,610 $              (24,740) $          5.00% Support needed to run computer equipment 2105 Fix Charge ‐ Reprographics 7,220 $                 7,220 $              11,280 $            4,060 $              10,570 $              (710) $                5.00% Provides some brochures/informational material 2106 Fix Charge ‐ Fleet 3,190 $                 3,190 $              1,130 $              (2,060) $             1,150 $                 20 $                    8.00% Based on usage2107 Fix Charge ‐ Risk Mgmt. 11,020 $              11,020 $            14,620 $            3,600 $              15,190 $              570 $                 4.00% Claims/Insurance2108 Fix Charge ‐ Records Mgmt. 3,350 $                 3,350 $              1,800 $              (1,550) $             1,660 $                 (140) $                10.00% Based on usage2109 Fix Charge ‐ Communications 41,430 $              41,430 $            66,930 $            25,500 $            68,070 $              1,140 $              2.00% Based on number of radios/telephones 2112 Fix Charge ‐ Public Works 179,050 $            179,050 $         ‐$                  (179,050) $        ‐ $   ‐$                  5.00% RABA Oversight (Dir, Asst Dir) 2113 Fix Charge ‐ NPDES 13,970 $              13,970 $            15,510 $            1,540 $              16,290 $              780 $                 2.00% Municipal/Industrial Permit Compliance 2116 Fix Charge ‐ GIS  2,860 $                 2,860 $              520 $                 (2,340) $             860 $   340 $                 2.00% Based on usage2117 Fix Charge ‐ Volunteer 310 $   310 $                 490 $                 180 $                 450 $   (40) $                  14.00% Overhead charge for other divisions 2118 Fix Charge ‐ Personnel 1,960 $                 1,960 $              3,440 $              1,480 $              2,900 $                 (540) $                2.00% Based on usage2120 Communication/Markeing/PR 6,590 $                 6,590 $              6,200 $              (390) $                6,410 $                 210 $                 2.00% Based on usage2162 Variable Charge ‐ Mail 1,090 $                 1,090 $              1,120 $              30 $                    1,150 $                 30 $                    2.00% Postage, interoffice 7,667,160 $        7,203,915 $      7,553,960 $      350,045 $         7,828,100 $       274,140 $ 2,597,110 $ 1,097,125 $ 693,600 $ (403,525) $ 3,399,000 $ 2,705,400 $ 10,264,270 $      8,301,040 $      8,247,560 $      7,670 $              11,227,100 $      7,922,796 $ Capital Outlay See Long‐Term Capital Plan
TOTAL EXPENSES

ACCOUNTS

EXPLANATION
Expenses
City Interdepartmental Charges
Total Operating Expenses
Accounts 2274 ‐ 2279 represent general repair and maintenance for transit vans/buses K-38

PROPOSED
Packet Pg. 1340 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

REDDING AREA BUS AUTHORITY
FY 2023-25 PROPOSED BUDGET

REVENUES
2022‐23 2022‐23 2022‐23 2023‐24 2023‐24 2024‐25 2024‐25 Inflation Amended Budget Adjustments Adj. Budget Projected + (‐) Projected + (‐) Factor 4010 Fixed Route Fares 583,250 $   418,038 $   411,900 $   (6,138) $   416,100 $                   4,200 $   1.00% 4020 Demand Response Fares 176,750 $   63,900 $   80,000 $   16,100 $   80,800 $   800 $   1.00% 4030 Rural Service (Burney Express) 25,250 $   10,000 $   11,900 $   1,900 $   12,100 $   200 $   1.00% 4050 Charter Service ‐ $ 200 $ 250 $ 50 $ 200 $ (50) $   0.00% Charter Service 4060 Aux Transit Revenue 73,550 $   72,000 $   73,800 $   1,800 $   75,700 $   1,900 $   2.50% Outside of bus & shelter advertising 4100 Sale of Property ‐ $ 3,000 $   3,000 $   ‐ $ ‐ $ (3,000) $   0.00% 4401 LCFS Revenue ‐ $ 1,500 $   1,600 $   100 $ 3,000 $   1,400 $   5.00% 3100 Real Estate/Lease Rentals 21,850 $   19,200 $   19,600 $   400 $ 20,000 $   400 $   2.00% DTC Lease Rental 9110 Investment Income 1,250 $   ‐ $ ‐ $ ‐ $ ‐ $ ‐ $   0.00% Interest from cash accounts 9100 Miscellaneous Revenue 5,210 $   5,300 $   5,500 $   200 $ 5,700 $   200 $   2.00% Vending Machines & Miscellaneous Revenue 6501 Shasta County ‐ Burney Express 242,700 $   242,700 $   248,800 $   6,100 $   255,100 $                   6,300 $   2.50% Burney Express Operations Contract 6502 Shasta County Operating (5311‐JPA) 356,170 $   399,800 $   409,800 $   10,000 $   420,100 $                   10,300 $   2.50% Shasta County Contracted Service (JPA) 2650/63 5307 ‐ Federal Operating 1,500,000 $                 3,000,000 $                 1,500,000 $                 (1,500,000) $                1,500,000 $                ‐ $   0.00% Federal funds for operations. Yearly allocation. 2650/63 Federal ARP Act ‐ Operating ‐ $ 545,770 $   ‐ $ (545,770) $                   ‐ $ 0.00% Federal funds for operations. 1200/63 TDA Operating 3,974,470 $                 2,422,507 $                 4,787,810 $                 2,365,303 $                 5,039,300 $                251,490 $                    0.00% State funds for operations. Includes funds from JPA Members 6,960,450 $              7,203,915 $              7,553,960 $              350,045 $                 7,828,100 $             274,140 $ 2650/70 5307 Federal‐Capital 1,093,600 $                 ‐ $ ‐ $ ‐ $ 1,520,000 $                1,520,000 $ Federal funds for capital purchases inc.: Vehicles, IT, Facility, Etc. Requires 20% local Match 2650/70 5339 Federal‐Capital 256,800 $   201,600 $   340,480 $   138,880 $   ‐ $ (340,480) $                   Federal funds for buses and bus facilities. Requires 20% Local Match 2650/70 5339c Federal Lo‐No ‐ $ ‐ $ ‐ $ ‐ $ 1,006,400 $                1,006,400 $                 Federal funds ‐ Competitive grant program for lo‐no vehicles and equipment 1200 TDA Capital 37,600 $   69,009 $   56,095 $   (12,914) $   580,000 $                   523,905 $   TDA funds to cover match portion of FTA grants 1200 PTMISEA/CalOES ‐ Prop1B CA 359,030 $   63,386 $   ‐ $ (63,386) $   ‐ $ ‐ $ State Prop1B funding for capital projects. Carry‐forward funds9120 SGR/LCTOP ‐ $ 763,130 $   297,025 $   (466,105) $                   292,600 $                   (4,425) $   State of Good Repair/ Low Carbon Transit Operations Program 1,747,030 $              1,097,125 $              693,600 $                 62,580 $                   3,399,000 $             2,709,825 $ 8,707,480 $         8,301,040 $         8,247,560 $         412,625 $            11,227,100 $     2,983,965 $         TOTAL REVENUES

ACCOUNTS

EXPLANATION
Revenues
TOTAL OPERATING REVENUE
Capital Outlay
TOTAL CAPITAL REVENUE

1.0% ridership increase applied starting 2024‐25
K-39

PROPOSED
Packet Pg. 1341 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

REDDING AREA BUS AUTHORITY
FY 2023-30 PROPOSED 7-Year Plan

SUMMARY
2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2028‐29 2029‐30 Budgeted Projected Projected Projected Projected Projected Projected Projected Passenger Fares ‐ Fixed Route 418,038 $   411,900 $   416,100 $   420,300 $   424,600 $   428,900 $   428,900 $   433,200 $  Passenger Fares ‐ Demand Response 63,900 $   80,000 $   80,800 $   81,700 $   82,600 $   83,500 $   83,500 $   84,400 $ Passenger Fares ‐ Burney Express 10,000 $   11,900 $   12,100 $   12,300 $   12,500 $   12,700 $   12,700 $   12,900 $  Charter 200 $ 250 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ Other Fare Revenue (Adv./Lease/Vend./Misc.) 96,500 $   100,500 $   104,400 $   107,100 $   110,000 $   109,300 $   109,300 $   112,100 $ Other Revenue (Interest) ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $Shasta County (Burney Express/5311 JPA) 642,500 $   658,600 $   675,200 $   692,200 $   709,600 $   727,500 $   727,500 $   745,800 $ FTA ‐ 5307 Operating 3,000,000 $                  1,500,000 $                  1,500,000 $                  1,500,000 $                  1,500,000 $                  1,500,000 $                  1,500,000 $                  1,500,000 $ FTA‐ CARES Act Operating ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ FTA ‐ ARP Act Operating 545,770 $   ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ TDA ‐ Operating 2,422,507 $                  4,787,810 $                  5,039,300 $                  5,385,008 $                  5,667,752 $                  5,977,692 $                  5,969,492 $                  6,584,180 $ FTA ‐ Capital (5307/5339/5339c) 201,600 $   340,480 $   2,526,400 $                  2,558,000 $                  2,636,100 $                  3,538,700 $                  ‐ $ 2,267,800 $ TDA ‐ Capital 69,009 $   56,095 $   580,000 $   121,000 $   124,800 $   273,800 $   ‐ $ ‐ $ Other ‐ Capital (Prop 1B) Carry‐Forward Funds 826,516 $   297,025 $   292,600 $   366,000 $   377,100 $   388,500 $   ‐ $ 400,200 $ TOTAL REVENUES 8,296,540 $            8,244,560 $            11,227,100 $          11,243,808 $          11,645,252 $          13,040,792 $          8,831,592 $            12,140,780 $ Administrative Costs 414,600 $   694,640 $   706,360 $   741,678 $   778,762 $   778,762 $   817,700 $   817,700 $  Purchased Transportation (Transdev Contract) 4,390,605 $                  4,532,200 $                  4,713,500 $                  4,902,100 $                  5,098,200 $                  5,302,200 $                  5,514,300 $                  5,734,900 $ Vehicle Expenses 1,375,100 $                  1,386,000 $                  1,454,200 $                  1,526,100 $                  1,602,000 $                  1,682,000 $                  1,685,300 $                  1,770,000 $ Marketing/Advertising/Promotions 35,000 $   35,700 $   36,500 $   37,300 $   38,100 $   38,900 $   38,900 $   39,700 $ Other Operating Expenses 585,500 $   623,940 $   657,700 $   723,600 $   713,500 $   753,700 $   811,100 $   802,800 $ City Interdepartmental Charges 403,110 $   281,480 $   259,840 $   270,030 $   280,690 $   291,830 $   303,480 $   315,680 $ Total Operating 7,203,915 $                7,553,960 $                7,828,100 $                8,200,808 $                8,511,252 $                8,847,392 $                9,170,780 $                9,480,780 $ CAPITAL OUTLAY 1,097,125 $               693,600 $                  3,399,000 $               3,045,000 $               3,138,000 $               4,201,000 $               2,668,000 $               1,375,000 $ TOTAL EXPENSES 8,301,040 $            8,247,560 $            11,227,100 $          11,245,808 $          11,649,252 $          13,048,392 $          11,838,780 $          10,855,780 $ Combined Fare Box Ratio ‐ As Proposed 8.0% 7.8% 7.7% 7.4% 7.3% 7.0% 6.8% 6.6% SRTA Required Farebox Ratio 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0%

ACCOUNTS
REVENUESEXPENSESOperating
K-40

PROPOSED
Packet Pg. 1342 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

REDDING AREA BUS AUTHORITY
FY 2023-30 PROPOSED 7-YEAR PLAN

EXPENSES
2022‐23 2022‐23 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2028‐29 2029‐30 Inflation Amended Adj Adj. Budget Projected Projected Projected Projected Projected Projected Projected Factor 1950 Administrative Costs 414,600 $                ‐ $ 414,600 $                694,640 $                 706,360 $                 741,678 $                 778,762 $                 778,762 $                 817,700 $                 817,700 $                 5.0% Xcharges ‐ Planner, Finance, Admin and Police 2252 Security Contracts 180,000 $                  1,600 $   181,600 $                  194,000 $   213,400 $   234,800 $   258,300 $   284,200 $   284,200 $   312,700 $   10.0% Security Contract ‐ DTC, other 2253 Professional Services/Consult 26,530 $   (1,530) $   25,000 $   26,000 $   27,100 $   28,200 $   29,400 $   30,600 $   31,900 $   33,200 $   4.0% Consultation Services. Audit fees. 2257 Landscape Maintenance 10,610 $   (5,610) $   5,000 $   5,100 $ 5,300 $ 5,500 $ 5,700 $ 5,900 $ 5,900 $ 6,100 $ 2.0% Landscape materials for facilities 2274 Vehicle Fuel/Lubricant 682,910 $                  277,090 $                  960,000 $                  960,000 $   1,017,600 $                1,078,700 $                1,143,500 $                1,212,200 $                1,212,200 $                1,285,000 $                6.0% 2274 Elctric Vhc Charging ‐ $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 0.0% 2276 Vehicle Repair/Maintenance 10,770 $   39,230 $   50,000 $   51,500 $   53,100 $   54,700 $   56,400 $   58,100 $   58,100 $   59,900 $   3.0% 2277 Vehicle Tires/Tubes 74,290 $   (9,290) $   65,000 $   68,400 $   71,200 $   74,100 $   77,100 $   80,200 $   83,500 $   86,900 $   4.0% 2279 Vehicle Parts/Supplies 364,140 $                  (64,140) $                   300,000 $                  306,000 $   312,200 $   318,500 $   324,900 $   331,400 $   331,400 $   338,100 $   2.0% 2291 Utility Expense 78,800 $   3,200 $   82,000 $   80,000 $   81,600 $   83,300 $   85,000 $   86,700 $   88,500 $   90,300 $   2.0% Maintenance Facility, DTC and South Fork Mountain utilities 2311 Communication Expense 45,620 $   (20,620) $                   25,000 $   65,600 $   67,000 $   68,400 $   69,800 $   71,200 $   71,200 $   72,700 $   2.0% RABA Phones/Radios/Internet & Equipment 2331 Purchased Transportation 4,392,110 $               (1,505) $   4,390,605 $               4,532,200 $                4,713,500 $                4,902,100 $                5,098,200 $                5,302,200 $                5,514,300 $                5,734,900 $                4.0% Contract Operator 2332 Contract Services 26,010 $   990 $ 27,000 $   27,600 $   28,200 $   28,800 $   29,400 $   30,000 $   30,000 $   30,600 $   2.0% Misc. contracts for Pest Control, HVAC, Electric, etc. 2443 Printing Outside 20,810 $   (410) $ 20,400 $   22,000 $   23,000 $   24,400 $   25,900 $   27,500 $   27,500 $   29,200 $   6.0% Route maps, transit brochures, passes, etc. 2444 Operating Materials/Supplies 11,560 $   15,440 $   27,000 $   27,600 $   28,200 $   28,800 $   29,400 $   30,000 $   30,600 $   31,300 $   2.0% General operating materials and supplies 2447 Software 90,180 $   (11,580) $                   78,600 $   53,200 $   54,800 $   104,000 $   58,200 $   60,000 $   113,700 $   63,700 $   3.0% Real‐Time application and vehicle location TSP (Service fee every 2 years per contract) 2451 Permit Fees 2,130 $   (130) $ 2,000 $   2,100 $ 2,200 $ 2,300 $ 2,400 $ 2,500 $ 2,500 $ 2,600 $ 2.0% NPDES fees for permits and monitoring 2472 Advertising/Promotions 36,420 $   (1,420) $   35,000 $   35,700 $   36,500 $   37,300 $   38,100 $   38,900 $   38,900 $   39,700 $   2.0% Marketing/media advertising‐newspaper/radio/TV 2473 Books/Dues/Subscriptions 18,580 $   (3,280) $   15,300 $   15,700 $   16,100 $   16,500 $   16,900 $   17,300 $   17,300 $   17,700 $   2.0% Dues for transit organizations, subscriptions, etc. 2475 Insurance Expense 57,680 $   4,120 $   61,800 $   64,900 $   70,000 $   73,500 $   77,200 $   81,100 $   81,100 $   85,200 $   5.0% E/O for Board, Liability, Facilities 2480 Other Allowances 2,600 $   (600) $ 2,000 $   2,040 $ 2,100 $ 2,200 $ 2,300 $ 2,400 $ 2,400 $ 2,500 $ 2.0% Allowance for Board member monthly meetings 2599 Building Repair/Maintenance 10,510 $   790 $ 11,300 $   11,600 $   11,900 $   12,200 $   12,500 $   12,800 $   12,800 $   13,100 $   2.0% Building repairs‐‐windows, minor repairs, etc. 2641 Civic Center Rent 16,110 $   390 $ 16,500 $   16,500 $   16,500 $   0.0% No charges fter 24/25, RABA's division changed from PW to CM's Office. 2671 Travel Expenses 8,170 $   (3,170) $   5,000 $   10,000 $   10,300 $   10,700 $   11,100 $   11,500 $   11,500 $   11,900 $   3.0% Travel for conferences/seminars Total Operating/Materials 6,581,140 $            219,665 $                6,800,805 $            7,272,480 $             7,568,260 $             7,930,778 $             8,230,562 $             8,555,562 $             8,867,300 $             9,165,100 $ 2001 Cost Allocation Plan 61,120 $   ‐ $ 61,120 $   48,090 $   49,530 $   52,010 $   54,620 $   57,360 $   60,230 $   63,250 $   5.0% Interdepartmental charges/City allocation support 2104 Fix Charge ‐ Information Systems 69,950 $   ‐ $ 69,950 $   110,350 $   85,610 $   89,900 $   94,400 $   99,120 $   104,080 $   109,290 $   5.0% Support needed to run computer equipment 2105 Fix Charge ‐ Reprographics 7,220 $   ‐ $ 7,220 $   11,280 $   10,570 $   11,100 $   11,660 $   12,250 $   12,870 $   13,520 $   5.0% Provides some brochures/informational material 2106 Fix Charge ‐ Fleet 3,190 $   ‐ $ 3,190 $   1,130 $ 1,150 $ 1,250 $ 1,350 $ 1,460 $ 1,580 $ 1,710 $ 8.0% Based on usage 2107 Fix Charge ‐ Risk Mgmt 11,020 $   ‐ $ 11,020 $   14,620 $   15,190 $   15,800 $   16,440 $   17,100 $   17,790 $   18,510 $   4.0% Claims/Insurance 2108 Fix Charge ‐ Records Mgmt 3,350 $   ‐ $ 3,350 $   1,800 $ 1,660 $ 1,830 $ 2,020 $ 2,230 $ 2,460 $ 2,710 $ 10.0% Based on usage 2109 Fix Charge ‐ Communications 41,430 $   ‐ $ 41,430 $   66,930 $   68,070 $   69,440 $   70,830 $   72,250 $   73,700 $   75,180 $   2.0% Based on number of radios/telephones 2112 Fix Charge ‐ Public Works 179,050 $                  ‐ $ 179,050 $                  ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 5.0% RABA Oversight (Dir, Asst Dir) 2113 Fix Charge ‐ NPDES 13,970 $   ‐ $ 13,970 $   15,510 $   16,290 $   16,620 $   16,960 $   17,300 $   17,650 $   18,010 $   2.0% Municipal/Industrial Permit Compliance 2116 Fix Charge ‐ GIS  2,860 $   ‐ $ 2,860 $   520 $ 860 $ 880 $ 900 $ 920 $ 940 $ 960 $ 2.0% Based on usage 2117 Fix Charge ‐ Volunteer 310 $ ‐ $ 310 $ 490 $ 450 $ 520 $ 600 $ 690 $ 790 $ 910 $ 14.0% Overhead charge for other divisions 2118 Fix Charge ‐ Personnel 1,960 $   ‐ $ 1,960 $   3,440 $ 2,900 $ 2,960 $ 3,020 $ 3,090 $ 3,160 $ 3,230 $ 2.0% Based on usage 2120 Communication/Markeing/PR 6,590 $   ‐ $ 6,590 $   6,200 $ 6,410 $ 6,540 $ 6,680 $ 6,820 $ 6,960 $ 7,100 $ 2.0% Based on usage 2162 Variable Charge ‐ Mail 1,090 $   ‐ $ 1,090 $   1,120 $ 1,150 $ 1,180 $ 1,210 $ 1,240 $ 1,270 $ 1,300 $ 2.0% Postage, interoffice Total Interdepartment 403,110 $                403,110 $                281,480 $                 259,840 $                 270,030 $                 280,690 $                 291,830 $                 303,480 $                 315,680 $ 6,984,250 $            7,203,915 $            7,553,960 $             7,828,100 $             8,200,808 $             8,511,252 $             8,847,392 $             9,170,780 $             9,480,780 $ 1,388,000 $            1,097,125 $            693,600 $                 3,399,000 $             3,045,000 $             3,138,000 $             4,201,000 $             2,668,000 $             1,375,000 $ 8,372,250 $         8,301,040 $         8,247,560 $          11,227,100 $       11,245,808 $       11,649,252 $       13,048,392 $       11,838,780 $       10,855,780 $ See Long‐Term Capital Plan
TOTAL EXPENSES
Adminstrative
Operating/Materials
Capital Outlay

ACCOUNTS

EXPLANATION
Expenses
City Interdepartmental Charges
Total Operating Expenses
Accounts 2274 ‐ 2279  represent general repair and maintenance for transit vans/buses K-41

PROPOSED
Packet Pg. 1343 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

REDDING AREA BUS AUTHORITY
FY 2023-30 PROPOSED 7-YEAR PLAN REVENUE
2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2028‐29 2029‐30 Projected Projected Projected Projected Projected Projected Projected Projected Increase 4010 Fixed Route Fares 411,900 $                416,100 $                420,300 $                424,600 $                428,900 $                428,900 $                433,200 $                1.0% 1.0% ridership increase applied starting 2024‐25 4020 Demand Response Fares 80,000 $                  80,800 $                  81,700 $                  82,600 $                  83,500 $                  83,500 $                  84,400 $                  1.0% 1.0% ridership increase applied starting 2024‐25 4030 Rural Service (Burney Express) 11,900 $                  12,100 $                  12,300 $                  12,500 $                  12,700 $                  12,700 $                  12,900 $                  1.0% 1.0% ridership increase applied starting 2024‐25 4050 Charter Service 250 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $   0.0% Charter Service 4060 Aux Transit Revenue 73,800 $                  75,700 $                  77,600 $                  79,600 $                  81,600 $                  81,600 $                  83,700 $                  2.5% Outside of bus & shelter advertising 4100 Sale of Property 3,000 $ ‐ $ 2,000 $   4,000 $   4,000 $   12,000 $                  4,000 $   0.0% Sales of Rolling Stocks 4401 LCFS Revenue 1,600 $   3,000 $   3,200 $   3,400 $   3,600 $   3,800 $   4,000 $   5.0% Low Carbon Fuel Standard Credit Sales3100 Real Estate/Lease Rentals 19,600 $                  20,000 $                  20,400 $                  20,900 $                  21,400 $                  21,400 $                  21,900 $                  2.0% DTC Lease Rental 9110 Investment Income ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $   0.0% Interest from cash accounts 9100 Miscellaneous Revenue 5,500 $   5,700 $   5,900 $   6,100 $   6,300 $   6,300 $   6,500 $   2.0% Vending Machines & Miscellaneous Revenue6501 Shasta County ‐ Burney Express 248,800 $                255,100 $                261,500 $                268,100 $                274,900 $                274,900 $                281,800 $                2.5% Burney Express Operations Contract 6502 Shasta County Operating (5311‐JPA) 409,800 $                420,100 $                430,700 $                441,500 $                452,600 $                452,600 $                464,000 $                2.5% Shasta County Contracted Service (JPA) Total 1,266,150 $            1,288,800 $            1,315,800 $           1,343,500 $           1,369,700 $           1,377,900 $           1,396,600 $ 2650/63 Federal (5307) Operating 1,500,000 $             1,500,000 $             1,500,000 $             1,500,000 $             1,500,000 $             1,500,000 $             1,500,000 $             Federal funds for operations. Yearly allocation. 2650/63 Federal ARP Act ‐ Operating Federal funds for operations. 1200/63 TDA 4,787,810 $             5,039,300 $             5,385,008 $             5,667,752 $             5,977,692 $             5,969,492 $             6,584,180 $             State funds for operations. Includes funds from JPA Members Total 6,287,810 $            6,539,300 $            6,885,008 $            7,167,752 $            7,477,692 $            7,469,492 $            8,084,180 $ 2650/70 5307 Federal‐Capital ‐ $ 1,520,000 $             484,000 $                499,200 $                514,400 $                ‐ $ ‐ $ Federal funds for capital purchases inc.: Vehicles, IT, Facility, Etc. Requires 20% local Match
2650/70 5339 Federal‐Capital 340,480 $                ‐ $ ‐ $ ‐ $ 822,800 $                ‐ $ ‐ $ Federal funds for buses and bus facilities. Requires 20% Local Match 2650/70 5339c Federal Lo‐No ‐ $ 1,006,400 $             2,074,000 $             2,136,900 $             2,201,500 $             ‐ $ 2,267,800 $             Federal funds ‐ Competitive grant program for lo‐no vehicles and equipment 1200/70 TDA Capital 56,095 $                  580,000 $                121,000 $                124,800 $                273,800 $                ‐ $ ‐ $ TDA funds to cover match portion of FTA grants 1200 PTMISEA/CalOES ‐ Prop1B CA ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ State Prop1B funding for capital projects. Carry‐forward funds 9120 SGR/LCTOP/STP 297,025 $                292,600 $                366,000 $                377,100 $                388,500 $                ‐ $ 400,200 $                State of Good Repair/ Low Carbon Transit Operations Program Total 693,600 $               3,399,000 $            3,045,000 $            3,138,000 $            4,201,000 $            ‐ $   2,668,000 $ 8,247,560 $        11,227,100 $      11,245,808 $      11,649,252 $      13,048,392 $      8,847,392 $        12,148,780 $

EXPLANATION

ACCOUNTS
Operating Revenue
Capital Revenue
TOTAL REVENUES
K-42

PROPOSED
Packet Pg. 1344 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Year 5 Year 6 Year 7 Year 9 Year 10
2027‐28 2028‐29 2029‐30 2030‐31 2031‐32
Number 111Cost ‐ $                ‐$               ‐ $               605,000 $        F 624,000 $      F 643,000 $        FNumber 1 2 2 2 21Cost ‐ $               1,184,000$   F 2,440,000 $     F 2,514,000 $   F 2,590,000 $     F 2,668,000 $   F 1,375,000 $   F ‐ $                ‐$               Number 22 4 4Cost 252,000 $       F 425,600 $      F ‐$               ‐$                ‐ $                968,000 $        F ‐ $               1,064,000 $     FNumber 1Cost 315,000 $       F ‐$               ‐$                ‐$                ‐$                ‐$               ‐$               ‐$                ‐$ 133,115 $       78,000 $         ‐$               ‐$                ‐$                ‐$                ‐$               ‐$               ‐$                ‐$ 115,000 $       ‐$               ‐$               ‐$                ‐$                ‐$                ‐$               ‐$               ‐$                ‐$               275,010 $       3,000$           ‐$               ‐$                ‐$                ‐$                ‐$               ‐$               ‐$                ‐$ ‐ $                ‐ $               1,900,000 $   F ‐ $                ‐$                ‐$                ‐$               ‐$               ‐$                ‐$               ‐ $                ‐$               ‐$                ‐$                ‐$                ‐$               ‐$               ‐$                ‐$ ‐ $                ‐$               ‐$               ‐$                ‐$                ‐$                ‐$               ‐$               ‐$                ‐$ ‐ $                7,000$           ‐$               ‐$                ‐$                ‐$                ‐$               ‐$               ‐$                ‐$ ‐ $                ‐$               ‐$               ‐$                ‐$                ‐$                ‐$               ‐$               ‐$                ‐$ ‐ $                ‐ $               115,000 $      ‐$ ‐ $ ‐$                ‐$               ‐$               ‐$                ‐$ 7,000 $            180,000 $      200,000 $      ‐$                ‐$                ‐$                ‐$               ‐$               ‐$                ‐$ Total Capital Costs $1,097,125 $693,600 $3,399,000 $3,045,000 $3,138,000 $4,201,000 $2,668,000 $1,375,000 $1,064,000 $0 ‐ $                1,520,000 $    484,000 $         499,200 $       514,400 $         ‐$                ‐$                ‐$                 ‐$ 201,600 $       340,480 $       ‐$                ‐$                 ‐ $                822,800 $         ‐$                ‐ $                904,400 $         ‐$ ‐ $                  ‐ $                  1,006,400 $    2,074,000 $      2,136,900 $    2,201,500 $      2,267,800 $    1,168,750 $    ‐$   ‐$ 69,009 $          56,095 $          580,000 $       121,000 $         124,800 $       273,800 $         ‐$                ‐ $                159,600 $         ‐$ 63,386 $
LCTOP 264,557 $       3,000 $            292,600 $       366,000 $         377,100 $       388,500 $         400,200 $       206,250 $       ‐$                 ‐$ SGR 255,115 $       294,025 $       ‐$                ‐$                 ‐$                ‐$                 ‐$                ‐$                ‐$                 ‐$ 243,458 $       ‐$                ‐$                ‐$                 ‐$                ‐$                 ‐$                ‐$                ‐$                 ‐$ Innovative Clean Transit Project (4047‐01) Cost
Sustainable Transportation Planning Grant
Capital Funds (TDA, Local Revenue)
Proposition 1B Funds (PTMISEA) Carry‐Forward
5339c Federal (Lo/No)
5339 Federal (Bus & Fac.)
Fund Source
5307 Federal (Capital Asst.)
Cost
Maintenance Facility/Equipment (4103‐04) CostProperty Expansion (4103‐04) CostFare Equipment CostSecurity Upgrades CostMiscellaneous Capital Projects (4103‐05) CostTransfer Facilities (4103‐05) CostDowntown Transit Center (4103‐02)Support Vehicles Cost
Replacement Buses (35ft)Replacement Buses (Electric) (5095‐01)Replacement Vans (4413‐01)Replacement Vans (Electric) (4413‐01)Electric Vehicle Chargers (5925‐01) Cost Long-Term Capital Plan
Redding Area Bus Authority
Capital Expense Item
Year 4
2026‐27
Year 1
2023‐24
Year 2
2024‐25
Year 3
2025‐26
Current Yr
2022‐23
K-43

PROPOSED
Packet Pg. 1345 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) K-44
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PROPOSED
Packet Pg. 1346 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) K-45

REDDING HOUSING AUTHORITY

PROPOSED
Packet Pg. 1347 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Housing Division
Organizational Chart
Assistant City Manager
Community
Development
Manager
Housing
Manager
Senior Housing
Specialist
Housing
Spcialist II
Housing
Specialist I
Housing
Specialist I
Housing
Specialist I
Housing
Technician
(Part‐Time)
Senior Housing
Specialist
Housing
Spcialist II
Housing
Specialist I
Housing
Specialist I
Clerk I
Senior Housing
Specialist
Assistant Project
Coordinator
Housing
Specialist I
Housing
Specialist I
Housing
Technician
Associate
Project
Coordinator
K-46

PROPOSED
Packet Pg. 1348 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-47

HOUSING AUTHORITY OF THE CITY OF REDDING
Overview
The Housing Authority of the City of Redding (RHA) administers the Section 8 Housing Choice Voucher (HCV) Program, a federal grant program funded through and administered by the United States Department of Housing and Urban Development (HUD). The HCV program is the federal government’s major program for assisting very low-income households, the elderly, and persons with disabilities to afford decent, safe and sanitary housing in the private market.

The RHA’s grant revenue from HUD consists of the following: HCV administrative fees, Housing Assistance Payments (HAP), and Family Self-Sufficiency (FSS) Coordinator funding. These funds are directly deposited each month into the RHA’s bank account based on a budget developed by HUD. In addition to the direct revenue received from HUD, RHA also receives HCV program fraud recovery revenue from current and previous program participants that are repaying assistance for which they were not entitled.

Projected funding for 2023-24 and 2024-25 budget years are conservatively forecasted based on projected HAP costs and the number of annual months leased. Program rules do not allow Housing Authorities to over-lease or overspend their allocated budget. Over-leasing occurs when actual annual unit months leased exceeds the total number of allocated baseline units. The current baseline units allocated to the RHA under its current Annual Contributions Contract is 1647. This number is comprised of 1,577 of traditional HCVs and 70 Veteran’s Affairs Supportive Housing Vouchers (VASH). In addition to these vouchers, two special purpose allocations are administered by the RHA; 75 in Mainstream Vouchers and 64 Emergency Housing Vouchers (EHV).

Presently, the maximum annual unit months leased is 22,272 (19,764 for standard vouchers, 840 for VASH, 900 for Mainstream Vouchers and 768 for EHV).

The requested HCV and administrative budget for FY 2023-24 totals $14,914,670, which represents an increase of $972,960 from the FY 2022-23 amended budget of $13,941,710. The FY 2024-25 requested budget totals $14,804,400, which is $110,270 less than the FY 2023-24 requested budget.

Description
FY 2021-22
Actual
FY 2022-23
Adopted
FY 2022-23
Amended*
FY 2023-24
Adopted
Increase
(Decrease)
FY 2024-25
Adopted
Increase
(Decrease)
RHA 10,561,813$ 10,547,560$ 13,941,710$ 14,914,670$ 972,960$ 14,804,400$ $ (110,270) *Excludes carryover amounts
The following table displays the Division’s budget divided into four main expenditure groups.

Materials,
Supplies & Capital Debt
Personnel Services Outlay Service Total
FY 2024-25 Adopted 1,641,380 $ 395,130 $ 12,767,890 $ - $ 14,804,400 $ FY 2023-24 Adopted 1,704,680 $ 422,100 $ 12,787,890 $ - $ 14,914,670 $ FY 2022-23 Amended 1,368,790 $ 470,310 $ 12,102,610 $ - $ 13,941,710 $ FY 2021-22 Actual 915,516 $ 419,474 $ 9,226,823 $ - $ 10,561,813 $ RHA
Division

PROPOSED
Packet Pg. 1349 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-48
Personnel
The Housing Division employees are shared between HCD and the Redding Housing Authority and presently include 18 full-time employees (FTEs) budgeted for FY 2023-24 and FY 2024-25. The FY 2022 budget provided for 14 FTEs.

The following table displays the Housing Division’s staffing for full-time and part-time employees.

FY 2021-22 FY 2022-23 FY 2022-23 FY 2023-24 Increase FY 2024-25 Increase Actual Adopted Amended Adopted (Decrease) Adopted (Decrease) F/T 16.00 14.00 18.00 18.00 - 18.00 -
P/T - - 0.48 0.48 - 0.48 -
Total 16.00 14.00 18.48 18.48 - 18.48 -
Housing Division
Description
Capital Outlay
Capital expenditures for RHA primarily consist of HAP to households on the HCV program. The number of households to which the RHA may provide assistance is determined by HUD, and the HAP expenditures are reimbursed accordingly. Given the projection of available funding, expected program activity and the average cost per unit, it is anticipated that 19,369-unit lease months will be realized during the 2023-24 fiscal year and 19,369-unit lease months will be realized in the 2024-25 fiscal year. The requested Capital Outlay Budget for FY 2023-24 reflects an increase of $685,280 from the adopted FY 2022-23 budget of $12,102,610. This increase accounts for the increased per unit cost of the HCV program.

Significant Issues
The administrative revenue projections for FY 2023-24 and FY 2024-25 are based on a per-voucher administrative reimbursement rate (pro-ration) of 0.89, this is the same per unit factor as utilized in the FY 2022- 23 budget. It is anticipated that RHA will earn enough revenue to cover its administrative expenses over the next budget cycle. However, with regard to Capital Expenditures in FY 2023-24, it is anticipated that the RHA will fully expend all HUD-held reserve account funds to cover increased leasing costs for the HCV program.

Performance Measures and Workload Indicators
FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Actual Estimated Projected Projected
Fair Housing Referrals 65 92 65 65
Family Self-Sufficiency Participants 65 68 62 58
HAP Contracts Leased 20,332 18,710 19,369 19,369
HCV Landlords 311 333 320 320
Inspections Completed 1,203 1,544 1,450 1,450
New Leases 459 256 525 475
Project-based Voucher Units Leased 159 73 151 59
Reexaminations/Interims Completed 2,800 2,790 2,810 2,810 Terminations 232 291 250 250
Vouchers Issued 843 756 915 900
Description

PROPOSED
Packet Pg. 1350 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) K-49
INDEX

PROPOSED
Packet Pg. 1351 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-50
INDEX
Appendix .......................................................................................................................... K-1 Budget Development Calendar ........................................................................................... xi Budget Message ............................................................................................................ AA-1 Budget Policies .............................................................................................................. K-15 Budget Resolution .............................................................................................................. iii Budget Users Guide ............................................................................................................ vi City Attorney’s Office ................................................................................................... F-21 City Clerk’s Office ........................................................................................................ F-15 City Council ..................................................................................................................... F-5 City Manager’s Office ..................................................................................................... F-7 City Manager’s Goals and Objectives ........................................................................ ..AA-5 Community Services Department .................................................................................... B-1 Comparative Summary of Estimated Revenues ............................................................. A-30 Comparative Summary of Expenditure Programs - All Funds ...................................... A-46 Development Services Department .................................................................................. C-1 Electric Department ......................................................................................................... D-1 Expenditures and Revenues per Resident ...................................................................... A-12 Financial Services ............................................................................................................ F-9 Fire Department ............................................................................................................... E-1 Fund Descriptions .......................................................................................................... K-11 General Fund Ten-Year Financial Plan ......................................................................... A-19 General Fund Source and Use Graphs ........................................................................... A-10 General Government ........................................................................................................ F-1 Glossary/Acronyms ......................................................................................................... K-3 History and Locale of the City of Redding ................................................................... A-65 Index .............................................................................................................................. K-49 Information Technology Department ............................................................................... G-1 Mission Statement .............................................................................................................. xii Municipal Officials ............................................................................................................. iv Non-Departmental.......................................................................................................... F-25 Organization Chart (City of Redding) ................................................................................. v Personnel Department ...................................................................................................... H-1 Police Department ............................................................................................................. I-1 Public Works ..................................................................................................................... J-1 Redding Area Bus Authority ......................................................................................... K-37 Redding Housing Authority ........................................................................................... K-45 Sales Tax - Where it Goes ............................................................................................. A-14 Statement of Estimated Revenues .................................................................................. A-32

PROPOSED
Packet Pg. 1352 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2024 AND 2025
K-51
Summary of Authorized Full-Time Positions ................................................................ A-49 Summary of Capital Projects ......................................................................................... A-61 Summary of Cost Allocation Charges and In-Lieu Property Taxes (PILOT)................ A-51 Summary of Expenditure Programs - All Funds ............................................................ A-43 Summary of Fund Transfers .......................................................................................... A-50 Summary of Internal Service Fund Charges .................................................................. A-54 Summary of Long Term Debt ........................................................................................ A-57 Summary of Net Expenditures - General Fund .............................................................. A-34 Table of Contents ................................................................................................................. i

PROPOSED
Packet Pg. 1353 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) K-52
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PROPOSED
Packet Pg. 1354 Attachment: Proposed Biennial Budget FY 23-24 & 24-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1355
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1356
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1357
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1358
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1359
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1360
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1361
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1362
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1363
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1364
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1365
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1366
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1367
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget) Packet Pg. 1368
Attachment: CEQA Exemption Budget 23-25 (9.1(c)--Consider Resolution adopting and approving City of Redding Biennial Budget)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Appoint two City Council Members to serve as members on an ad-hoc Steering Committee to develop a Cities and County Plan to address homelessness.

Fiscal Impact
Participation on the ad-hoc committee will not impact the General Fund.

Alternative Action
The City Council could choose not to appoint the members to the ad-hoc committee.

Background/Analysis
Homelessness is a significant humanitarian crisis. Even so, California lacks a comprehensive plan to address it effectively and equitably. Despite significant investments and partnerships between the state and local governments, our response to helping those who are unhoused is fragmented and lacks clear lines of responsibility, accountability and sustainability.

On April 18, 2023, the Shasta County Board of Supervisors endorsed a letter of support for the California State Association of Counties (CSAC) comprehensive plan to address homelessness, AT HOME. The AT HOME plan is designed to be a collaborative effort which recognizes that local officials understand local challenges and are best equipped to develop solutions that work for their residents.

The AT HOME plan provides for the development of a Local Plan to address homelessness in Shasta County. The County and Cities are determined to work with our state to implement a comprehensive plan to help those who are unhoused or at risk of becoming unhoused in our communities. No one level of government is solely responsible for the homelessness crisis. As MEETING DATE: June 20, 2023
ITEM NO. 9.1(d)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.1(d)--Consider appointment of two Council Members to Ad-Hoc Steering Committee to develop a Cities and County Plan to address homelessness.

Barry Tippin, City Manager
Packet Pg. 1369
Report to Redding City Council June 15, 2023
Re: 9.1(d)--Consider Appointment of Council Members to Ad-Hoc Steering Committee Page 2 such, the intent is to develop a comprehensive and coordinated plan that includes all levels of government. While the AT HOME plan works its way through the system, there is an opportunity for the local entities to work on development of a similar plan for Shasta County.

The creation of a steering committee consisting of elected officials and City and County administrative officials is necessary to accomplish this task and to chart a successful path forward. The plan will:
• Clearly define city and county roles for standing up and supporting shelters, permanent supportive housing, encampment outreach, and encampment clean-up; • Coordinate resources in a collaborative way to address the highest-priority homeless needs in our community;
• Develop a county-wide plan with clear and established goals and responsibilities; • Allocate funding commensurate with the responsibilities each entity has within the plan and provide for maximum local flexibility to be used in accordance with established goals and outcomes; and
• Establish necessary Management Committee(s) to provide clear responsibilities aligned to the authority, resources, and a commitment to collaboration.

Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Packet Pg. 1370

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to the First Amendment to the Letter of Agreement (C0458) between the City of Redding and Big League Dreams USA, LLC modifying the schedule of capital improvement projects:
(1) Authorize the City Manager to execute the First Amendment to the Letter of Agreement; and
(2) Find that the activity is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 (a and d) – Existing Facilities.

Fiscal Impact
There is no impact to the General Fund.

Alternative Action
The City Council (Council) may decline to approve the attached First Amendment to the Letter of Agreement (Amendment) with Big League Dreams USA (BLD) and provide staff with alternate directions.

Background/Analysis
In 2001, the City and BLD executed a lease agreement for the sports complex referred to as Big League Dreams Sports Park (Park). In 2004, the Park was opened and the start of the thirty-five (35) year lease term began. The agreement’s conditions require BLD to pay monthly lease payments equivalent to six percent (6%) of gross receipts after the first three years. BLD paid over $950,000 in lease payments through May 2019. BLD fell behind in payments and BLD was sold to TC Sports. TC Sports closed the sale in August 2022, to operate all nine Big League MEETING DATE: June 20, 2023
ITEM NO. 9.6(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(d)--Consideration of a First Amendment to the Letter of Agreement (C-0458) with Big League Dreams USA, LLC
Kim Niemer, Community
Services Director
Packet Pg. 1371
Report to Redding City Council June 20, 2023
Re: 9.6(d) First Amendment to C-0458 Page 2
Dreams USA facilities. In 2023, TC Sports and the City created a new repayment and Capital Improvement Plan.

On February 21, 2023, Council approved a Letter of Agreement (C-0458) with BLD for the payment of past due lease obligations and a capital improvement plan to address facility repairs and replacements. The attached amendment adjusts the capital improvement project schedule.

The payment plan remains the same, and BLD is current with remittances.

Phase I projects are anticipated to be completed by August 1, 2023 and include:
• Batting Cage Repair
• New POS System
• Paint Buildings
• Paint Outfield Replica Walls
• Parking Lot Lighting
• Repair Shade Structures - Replica Fields (Sept. 20, 2023) • Fix all Broken Stadium Seats
• Pawtucket Grading Repairs in Outfield
• Restroom Upgrade
• Stadium Club Flooring
• Stadium Club Paint
Phase II improvements involve new sand in the volleyball courts and new synthetic turf in the infield and batter’s box, and are now scheduled to be complete by March 31, 2024.

The amendment has been approved as to form by the City Attorney.

Environmental Review
Staff has reviewed the action and determined that the activity is Categorically Exempt from review under the California Environmental Quality Act (CEQA) Guidelines, per Section 15301(a and d). Class 1 exemptions include the operation, repair, maintenance, or minor alteration of existing facilities, structures, or equipment involving negligible or no expansion of use.

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.” • 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.”
Packet Pg. 1372
Report to Redding City Council June 20, 2023
Re: 9.6(d) First Amendment to C-0458 Page 3
Attachments
^LOA amendment 1 LR signed
February 21, 2023 Staff Report
Letter of Agreement_2023_Executed
Contract-0458_Original Signed in 2001
Packet Pg. 1373
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Packet Pg. 1375 Attachment: ^LOA amendment 1 LR signed (9.6(d) First Amendment to C-0458)

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 payments 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 attached 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 receipts after three years in operation. BLD paid over $950,000 in lease payments through May 2019. Around the time the 2019 2nd Quarter Payment was due, a BLD representative called and requested an extension for the payment as the 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] [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. 1376 Attachment: February 21, 2023 Staff Report (9.6(d) First Amendment to C-0458) 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 to 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 input 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 that 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. 1377 Attachment: February 21, 2023 Staff Report (9.6(d) First Amendment to C-0458) 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. 1378 Attachment: February 21, 2023 Staff Report (9.6(d) First Amendment to C-0458) Packet Pg. 1379
Attachment: Letter of Agreement_2023_Executed (9.6(d) First Amendment to C-0458) Packet Pg. 1380
Attachment: Letter of Agreement_2023_Executed (9.6(d) First Amendment to C-0458) Packet Pg. 1381
Attachment: Letter of Agreement_2023_Executed (9.6(d) First Amendment to C-0458) Packet Pg. 1382
Attachment: Letter of Agreement_2023_Executed (9.6(d) First Amendment to C-0458) Packet Pg. 1383
Attachment: Letter of Agreement_2023_Executed (9.6(d) First Amendment to C-0458) Packet Pg. 1384
Attachment: Letter of Agreement_2023_Executed (9.6(d) First Amendment to C-0458)

SPORTS PARK LEASE
between

CITY OF REDDING
and

BIG LEAGUE DREAMS REDDING, LLC
Packet Pg. 1385 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) "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. 1386 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1387 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1388 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1389 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1390 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1391 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1392 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1393 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1394 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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
Packet Pg. 1395 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1396 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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.

Packet Pg. 1397 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1398 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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.

Packet Pg. 1399 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1400 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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.

Packet Pg. 1401 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1402 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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;
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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. 1403 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1404 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1405 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1406 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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.

Packet Pg. 1407 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1408 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1409 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1410 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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.

Packet Pg. 1411 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1412 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1413 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1414 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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:

Packet Pg. 1415 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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.

Packet Pg. 1416 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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 attorneyin-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. 1417 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1418 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1419 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1420 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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;
Packet Pg. 1421 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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:

Packet Pg. 1422 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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.

Packet Pg. 1423 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1424 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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.

Packet Pg. 1425 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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&
By: - I -c
David E. Tranberg, ~wity Atto&
TENANT:

BIG LEAGUE DREAMS REDDING, LLC
By:
scot? Parks LeTellier
Chief Executive Officer
Packet Pg. 1426 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) Big League Dreams Redding Sports Park Lease
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
Packet Pg. 1427 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) EXHIBIT 1

PLOT PLAN OF LAND
Packet Pg. 1428 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) Bia Leaaue Dreams Reddina S~orts Park Lease
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.

Packet Pg. 1429 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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
Packet Pg. 1430 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1431 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1432 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1433 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1434 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1435 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1436 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1437 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1438 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1439 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1440 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1441 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1442 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) 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. 1443 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458) Big League Dreams Redding Sports Park Lease
EXHIBIT 7

DEPICTION OF TERRITORIAL RESTRICTIONS
Packet Pg. 1444 Attachment: Contract-0458_Original Signed in 2001 (9.6(d) First Amendment to C-0458)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve the following relative to the Professional Services Agreement (PSA) with the Siskiyou Opportunity Center regarding janitorial services for City of Redding (City) facilities:
(1) Authorize the City Manager to negotiate and execute a PSA with the Siskiyou Opportunity Center; and
(2) Authorize the City Manager to execute all subsequent PSA documents necessary to implement janitorial services for City facilities.

Fiscal Impact
The two-year agreement with Siskiyou Opportunity Center (SOC) for janitorial services costs $1,350,000 which is $850,000 more than the prior contract with Shasta County Opportunity Center. Due to the timing, staff will include the increase in the mid-year budget review to be presented to City Council (Council) in September 2023.

Alternative Action
The Council could choose not to approve authorization or provide staff with an alternate direction. An alternative for City facilities' janitorial services would include hiring employees to provide the service or contracting with another janitorial service. For City employees to service City facilities would be a significant expense and start-up period. Going out to bid to contract with other janitorial services would result in months without janitorial services for City facilities.

Background/Analysis
For over 50 years, SOC has provided a wide range of vocational training, independent living skills, and access to the community. SOC is an independent, not-for-profit separate from the County of Siskiyou. Recently, the SOC earned accreditation by the Commission on the MEETING DATE: June 20, 2023
ITEM NO. 9.6(e)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(e)--Authorize Professional Services Agreement with the Siskiyou Opportunity Center
Kim Niemer, Community
Services Director
Packet Pg. 1445
Report to Redding City Council June 14, 2023
Re: 9.6(e)--Authorize Agreement of Professional Services with the Siskiyou Opportunity Center Page 2
Accreditation of Rehabilitation Facilities. Achieving accreditation requires a service provider to commit to quality improvement, focus on the unique needs of each person the provider serves, and monitor the results of services. The SOC has experience in providing similar janitorial services. They currently provide recycling and janitorial services at schools, rest stops, and Siskiyou County facilities.

Like the Shasta County Opportunity Center, the SOC is considered a sheltered workshop under Welfare and Institutions Code Section 19404, which allows for sole sourcing of the services provided by sheltered workshops. The City had contracted with the Shasta County Opportunity Center for janitorial services at City facilities since July 1992. On February 28, 2023, the Shasta County's Board of Supervisors voted unanimously to close the Shasta County Opportunity Center on June 30, 2023, which will end the City's contract prematurely by six months.

Due to the closure of the Shasta County Opportunity Center and insufficient notice as required by the existing contract, staff worked with Far Northern Regional Center staff who contacted other providers to solicit bids for the janitorial services contract. The SOC was the sole entity to show interest. After several site visits and job shadowing with the current crews, the SOC submitted its proposal to the City. The SOC proposal is significantly more expensive than the contract with Shasta County. The current two-year contract with Shasta County costs approximately $500,000.

The new two-year proposal from Siskiyou Opportunity Center is $1,350,000, an $850,000 increase. Based on conversations with Shasta County and Far Northern Regional Center, the charges from Shasta County were extremely low and did not cover the basic operating expenses.

Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act Guidelines §§ 15378 and 15061(b)(3) as it proposes an organizational structure change that will not result in any direct or indirect physical change in the environment.

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
Termination Notice_051523
Packet Pg. 1446
shastacounty.gov/hhsa
@ShastaHHSA
May 16, 2023
To: Attention: Solid Waste Utility
City of Redding
P.O. Box 496071
Redding, CA 96049-6071
Barry Tippin, City Manager
City of Redding
P.O. Box 496071
Redding, CA 96049-6071
To Whom It May Concern:

On March 20, 2023, the County sent a notice that it was terminating the Personal Service Agreement Between the County of Shasta and the City of Redding For Recyclable Material Sorting which commenced on January 1, 2021 (the “Agreement”). The notice of termination was pursuant to Section 6.D. of the Agreement with an effective date of June 30, 2023.

Pursuant to my conversation with Barry Tippin today, the City of Redding and County of Shasta mutually agree that the Agreement will terminate effective May 26, 2023, and the City of Redding will waive the 30-day notice requirement in Section 6.D. of the Agreement.

Please contact Laura Burch, Agency Director, Health and Human Services Agency, at [email protected] or 530-225-5899 if you have any questions.

Thank you for the City of Redding’s cooperation in this matter.

Sincerely,
Laura Burch, Director
Health and Human Services Agency
CC: Dwayne Green, Branch Director
Economic Mobility Branch – Health and Human Services Agency DocuSign Envelope ID: F59D4BEC-6A11-4D9C-BF58-05F1846ECF4A Packet Pg. 1447 Attachment: Termination Notice_051523 (9.6(e)--Authorize Agreement of Professional Services with the Siskiyou Opportunity Center)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution approving an amendment to the Executive Management Pay-for-Performance Salary Plan Changing Titles of the Electric Manager - Compliance and Electric Manager - Engineering, creating six new Electric Program Supervisor classifications, and increasing wages for the Electric Supervisor-Power Production and Electric Manager-Power Production effective June 25, 2023.

Fiscal Impact
The fiscal impact for wage increases for the Electric Supervisor-Power Production and Electric Manager-Power Production is approximately $100,000, which will be paid for by salary savings.

There will be no fiscal impact for changing classification titles and creating new classifications.

Alternative Action
City Council could decline to approve the resolution, and the new classifications, title changes and wage increases would not be created
Background/Analysis
The labor market continues to remain extremely competitive, especially for some positions within the Electric Utility (Utility). For example, the City of Redding (City) has been unable to recruit an Engineering Manager over the North American Electric Reliability Corporation (NERC)-Certified Operations Division. The current classification for that position is an Engineering Manager - Engineering, includes oversight of multiple functional areas, which could create confusion for potential candidates. Creating a new classification and title change reflecting only the duties required of an Electric Manager over Operations would better fit industry categories for larger utilities and be a more effective vehicle toward attracting qualified candidates.

MEETING DATE: June 20, 2023
ITEM NO. 9.15(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.15(a)-Consider Resolution Amending Executive Management Pay for Performance Salary Plan
Kari Kibler, Personnel
Director
Packet Pg. 1448
Report to Redding City Council June 20, 2023
Re: 9.15(a)--Consider Resolution Amending Executive Management Pay for Performance Salary Plan Page 2
Additionally, since becoming a NERC certified utility, the City is required to comply with more stringent grid reliability standards enforced by the NERC. The Utility’s Compliance Manager oversees a number of compliance programs and at times may need to direct the actions of managers and their staff, as well as serve as a subject matter expert for divisions throughout the Utility. To better reflect the required reporting structure and expectations of the position, it is recommended that the title of the classification change from Compliance Manager to Compliance Officer.

Also, up to now, the Utility has utilized a general Electric Program Supervisor job title to apply to several different types of programs. Over time, the Utility has added more programs under the Electric Program Supervisor title that have very different duties from each other. Recruiting for one particular program out of several listed in the generic Program Supervisor classification has caused confusion for potential candidates as well as management regarding the expectations of the position. Staff suggests creating separate classification specifications for each program under generic Program Supervisor title, which would include Program Supervisor-Vegetation Management, Program Supervisor-Customer Programs, Program Supervisor-Customer Service, Program Supervisor-Compliance, Program Supervisor Settlements, and Program SupervisorFinancial Services.

By making the above recommended title changes, there would be no salary adjustments needed, and there would be no new positions created.

Finally, in a separate matter, on April 4, 2023, Council approved a resolution adopting a Memorandum of Understanding and Salary Exhibits between the City and the International brotherhood of Electrical Workers-Power Production Unit. The negotiated contract increased wages for the represented employees between 10-20 percent depending on classification.

However, the 20 percent increase for the Working Foreman - Power Production created compression with the supervisor and manager positions. In order to address the wage inequity, staff recommends increasing the Electric Program Supervisor-Power Production wage from $14,259 per month to $16,769 per month, or 17.6 percent, as well as the Electric Program Manager-Power Production from $16,063 per month to $18,441 per month, or 14.8 percent.

Environmental Review
This is not a project defined under California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Resolution
Reso 2023 - 032 - Adopting the MOU and Salary Exhibits for IBEW PPU ExecMgmtSalaryPlan-June 25, 2023
ExecMgmtSalaryPlan-July 9, 2023
Packet Pg. 1449
Resolution No. 2023-________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AMENDMENT TO THE EXECUTIVE MANAGEMENT PAYFOR-PERFORMANCE SALARY PLAN FOR UNREPRESENTED EMPLOYEES, EFFECTIVE JUNE 25, 2023
WHEREAS, staff has recommended that the Executive Management Pay-ForPerformance Salary Plan be amended, effective June 25, 2023; and WHEREAS, the City Council deems it to the in the best interest of the City to adopt such recommendation;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council that the Executive Management Pay-For-Performance Salary Plan be amended, effective June 25, 2023.

I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a regular meeting of the City Council on the twentieth day June, 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
Packet Pg. 1450 Attachment: ^Resolution (9.15(a)--Consider Resolution Amending Executive Management Pay for Performance Salary Plan) RESOLUTION NO. 2023- 032

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

ADOPTING THE MEMORANDUM OF UNDERSTANDING AND

SALARY EXHIBITS BETWEEN THE CITY OF REDDING AND
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS —
POWER PRODUCTION UNIT, EFFECTIVE APRIL 5, 2023
WHEREAS, International Brotherhood of Electrical Workers — Power Production Unit has been formally recognized as the majority representative of an appropriate unit of employees, as set forth in Section 2. 1 of Article 2 of the Memorandum of Understanding; and WHEREAS, the designated representatives of the City of Redding have conferred with and entered into a Memorandum of Understanding with the designated representatives ofInternational Brotherhood of Electrical Workers — Power Production Employees Unit, as required by the provisions of the Meyers- Milias- Brown Act of 1968; and WHEREAS, staff has recommended adoption of said Memorandum of Understanding; and WHEREAS, the City Council deems it to be in the best interest of the City to adopt such recommendation;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council ofthe City of Redding that the aforesaid Memorandum of Understanding and Salary Exhibits are hereby approved and shall be effective April 5, 2023.

I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 4th day April, 2023, by the following vote:

AYES: COUNCIL MEMBERS: Audette, Mezzano, Munns, Winter, and Dacquisto NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ATTEST:

MELA MIZE, City Clerk
MICHAEL DACQUISTO, Mayor
FORM APPROVED:

Cl
BARRY E. DeWALT, City Attorney J
4 Packet Pg. 1451 Attachment: Reso 2023 - 032 - Adopting the MOU and Salary Exhibits for IBEW PPU (9.15(a)--Consider Resolution Amending Executive

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS - POWER PRODUCTION EXHIBIT A- 1: SCHEDULE OF WAGE RATES
Effective Date: April 2, 2023
Step 5
Hourly Pay Rate - Salary Step Monthly
J/ C Classification 1 2 3 4 5 Equivalent
886 Power Plant Utility Worker $ 17. 80 20. 16 $ 22. 85 $ 31. 18 32. 74 5, 675 842 Power Plant Warehouse Worker 36. 97 38. 82 6, 729
804 Maintenance Coordination Assistant 50. 21 8, 703
833 Power Plant Auxiliary Operator 53. 41 56. 08 9, 721 822 Power Plant Maintenance Mechanic 63. 68 11, 037
823 Power Plant Operator 66. 72 11, 564
816 Instrument & Electrical Technician 69. 66 12, 074
834 Power Plant Relief Operator 72. 06 12, 490
813 Working Foreman - Power Plant Maintenance Mechanic 76. 48 13, 257 814 Working Foreman - Power Plant Operations 76. 48 13, 257 802 Working Foreman - Instrument & Electrical Technician 76. 48 13, 257 805 Control and Automation Technician 80. 14 13, 891
Full- time temporary employees only
Note: Pay rates are calculated utilizing a standardized formula and small differences may occur due to rounding.

Packet Pg. 1452 Attachment: Reso 2023 - 032 - Adopting the MOU and Salary Exhibits for IBEW PPU (9.15(a)--Consider Resolution Amending Executive

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS - POWER PRODUCTION EXHIBIT A- 3: SCHEDULE OF WAGE RATES
Effective Date: March 30, 2025
Step 5
Hourly Pay Rate - Salary Step Monthly
J/ C Classification 1 2 3 4 5 Equivalent
886 Power Plant Utility Worker $ 19. 63 22. 23 $ 25. 19 $ 34. 38 36. 10 6, 257 842 Power Plant Warehouse Worker 40. 76 42. 80 7, 419
804 Maintenance Coordination Assistant 55. 36 9, 595
833 Power Plant Auxiliary Operator 58. 89 61. 83 10, 718 822 Power Plant Maintenance Mechanic 70. 20 12, 169
823 Power Plant Operator 73. 56 12, 750
816 Instrument & Electrical Technician 76. 80 13, 312
834 Power Plant Relief Operator 79. 44 13, 770
813 Working Foreman - Power Plant Maintenance Mechanic 84. 32 14, 616 814 Working Foreman - Power Plant Operations 84. 32 14, 616 802 Working Foreman - Instrument & Electrical Technician 84. 32 14, 616 805 Control and Automation Technician 88. 36 15, 315
Full- time temporary employees only
Note: Pay rates are calculated utilizing a standardized formula and small differences may occur due to rounding.

Packet Pg. 1453 Attachment: Reso 2023 - 032 - Adopting the MOU and Salary Exhibits for IBEW PPU (9.15(a)--Consider Resolution Amending Executive Job Code Title
96 City Clerk (Elected Official) $600
97 City Treasurer (Elected Official) $600
30 Director of Electric Utility $17,516 – $22,772
31 Assistant Director of Electric Utility $15,924 – $20,702 35 Chief of Police $15,659 – $20,358
61 Electric Manager - Energy Management $14,448 – $18,783 84 Electric Manager - Engineering Operations $14,448 – $18,783 76 Electric Manager - Power Production $14,184 – $18,441 40 Fire Chief $13,859 – $18,017
12 Assistant City Manager $13,729 – $17,848
88 Electric Program Supervisor - Energy Management $13,103 – $17,034 62 Electric Program Supervisor - Transmission & Distribution $13,103 – $17,034 20 Director of Public Works $13,075 – $16,998
59 Electric Program Supervisor - Power Production $12,899 – $16,769 69 Electric Manager - Financial $12,158 – $15,806
94 Chief Information Officer $12,158 – $15,806
63 Electric Manager - Customer Services and Metering $12,059 – $15,678 77 Electric Manager - Line $12,059 – $15,678
86 Electric Manager - Resources $12,059 – $15,678
42 Deputy Fire Chief $11,940 – $15,523
43 Director of Development Services $11,850 – $15,406
52 Director of Community Services $11,850 – $15,406
134 Assistant City Attorney II $11,602 – $15,083
66 Electric Manager - Compliance Officer $11,553 – $15,020 67 Electric Manager - Technology $11,553 $15,020
87 Electrical Engineering Supervisor $11,314 – $14,708
64 Director of Finance $11,028 – $14,337
65 Personnel Director $11,028 – $14,337
18 Deputy City Manager $11,006 – $14,308
78 Electric Program Supervisor - Line $11,001 – $14,302 106 Assistant Director of Public Works $10,781 – $14,016 80 Electric Program Supervisor - Substations $10,740 – $13,963 41 Electric Program Supervisor - Meter Shop $10,740 – $13,963 89 Electric Program Supervisor - Service Planning $10,600 – $13,780 135 Assistant City Attorney I $10,507 – $13,660
81 Electric Manager $10,308 – $13,401
108 Electrical Engineer $10,299 – $13,390
68 Operations/Compliance Engineer $10,299 – $13,390
262 Power Plant Engineer II $10,299 – $13,390
112 Assistant City Engineer $10,190 – $13,248

CITY OF REDDING

EXECUTIVE MANAGEMENT PAY-FOR-PERFORMANCE SALARY PLAN
Effective: June 25, 2023
Monthly Salary Range

NO RANGE

NO RANGE
Packet Pg. 1454 Attachment: ExecMgmtSalaryPlan-June 25, 2023 (9.15(a)--Consider Resolution Amending Executive Management Pay for Performance Salary Job Code Title Monthly Salary Range
82 Electric Program Supervisor $10,073 – $13,096
58 Electric Program Supervisor - Operational Technology $10,073 – $13,096 273 Electric Program Supervisor - Vegetation Management $10,073 – $13,096 274 Electric Program Supervisor - Customer Programs $10,073 – $13,096 275 Electric Program Supervisor - Customer Service $10,073 – $13,096 276 Electric Program Supervisor - Compliance $10,073 – $13,096 277 Electric Program Supervisor - Settlements $10,073 – $13,096 278 Electric Program Supervisor - Financial Services $10,073 – $13,096 260 Electric Utility Senior Resource Planner $10,073 – $13,096 155 Electric Utility Senior Project Engineer $9,970 – $12,962 71 Assistant Director of Development Services/Building Official $9,904 – $12,876 93 Deputy Director of Public Works $9,833 – $12,783
54 Cyber Security Officer $9,567 – $12,437
138 Planning /Community Development Manager $9,454 – $12,291 202 Transit Manager $9,454 – $12,291
50 Assistant Director - Community Services $9,364 – $12,174 252 Municipal Utilities Manager $9,364 – $12,174
192 Electric Utility Operational Technology Engineer $9,267 – $12,047 116 Electric Utility Resource Planner $9,267 – $12,047
60 Finance Officer $9,158 – $11,906
72 Environmental Compliance Manager $9,013 – $11,717
127 Building Official $8,989 – $11,686
110 Electric Utility Engineer $8,825 – $11,473
261 Power Plant Engineer I $8,825 – $11,473
151 Deputy City Attorney $8,793 – $11,432
75 Airports Manager $8,708 – $11,321
103 Housing Manager $8,484 – $11,029
153 Deputy Building Official $8,429 – $10,958
182 Geographic Information Systems Manager $8,268 – $10,749 249 Field Foreman-Electrical Technician $8,259 – $10,737 95 Personnel Manager $8,140 – $10,582
90 Risk Manager $8,140 – $10,582
98 Administrator - Office of City Clerk $8,055 – $10,472 99 Administrator - Office of City Treasurer $8,055 – $10,472 131 Economic Development, Innovation and Equity Manager $7,929 – $10,308 121 Electric Utility Engineering Associate $7,721 – $10,038 105 Assistant Finance Officer $7,662 – $9,961
92 Parks & Facilities Manager $7,630 – $9,920
51 Communication Manager $7,600 – $9,880
195 Electric Utility Associate Resource Planner $7,489 – $9,736 107 Energy Services Account Manager $7,392 – $9,610
56 Senior Personnel Analyst $7,378 – $9,592 Packet Pg. 1455 Attachment: ExecMgmtSalaryPlan-June 25, 2023 (9.15(a)--Consider Resolution Amending Executive Management Pay for Performance Salary Job Code Title
209 Assistant Airports Manager $7,260 – $9,438
136 Electric Utility Engineering Assistant II $7,045 – $9,159 166 Purchasing Officer $6,949 – $9,033
113 Electric Utility Field Foreman $5,362 – $8,720
175 Management Assistant to the City Manager $6,607 – $8,589 150 Electric Utility Engineering Assistant I $6,397 – $8,317 165 Parks Superintendent $6,349 – $8,254
169 Recreation Superintendent $6,349 – $8,254
130 Fleet Manager $6,267 – $8,148
185 Police Services Manager $6,267 – $8,148
245 Executive Assistant to the City Manager $5,153 – $6,700 109 Reprographics Manager $5,153 – $6,700
Monthly Salary Range
Packet Pg. 1456 Attachment: ExecMgmtSalaryPlan-June 25, 2023 (9.15(a)--Consider Resolution Amending Executive Management Pay for Performance Salary Job Code Title
96 City Clerk (Elected Official) $600
97 City Treasurer (Elected Official) $600
30 Director of Electric Utility $17,779 – $23,114
31 Assistant Director of Electric Utility $16,163 – $21,012 35 Chief of Police $15,894 – $20,664
61 Electric Manager - Energy Management $14,665 – $19,065 84 Electric Manager - Operations $14,665 – $19,065
76 Electric Manager - Power Production $14,184 – $18,441 40 Fire Chief $14,067 – $18,287
12 Assistant City Manager $13,934 – $18,116
88 Electric Program Supervisor - Energy Management $13,299 – $17,290 62 Electric Program Supervisor - Transmission & Distribution $13,299 – $17,290 20 Director of Public Works $13,271 – $17,253
59 Electric Program Supervisor - Power Production $12,899 – $16,769 69 Electric Manager - Financial $12,341 – $16,043
94 Chief Information Officer $12,341 – $16,043
63 Electric Manager - Customer Services and Metering $12,240 – $15,913 77 Electric Manager - Line $12,240 – $15,913
86 Electric Manager - Resources $12,240 – $15,913
42 Deputy Fire Chief $12,120 – $15,756
43 Director of Development Services $12,028 – $15,637
52 Director of Community Services $12,028 – $15,637
134 Assistant City Attorney II $11,776 – $15,310
66 Compliance Officer $11,726 – $15,245
67 Electric Manager - Technology $11,726 $15,245
87 Electrical Engineering Supervisor $11,483 – $14,929
64 Director of Finance $11,194 – $14,552
65 Personnel Director $11,194 – $14,552
18 Deputy City Manager $11,171 – $14,523
78 Electric Program Supervisor - Line $11,166 – $14,516 106 Assistant Director of Public Works $10,943 – $14,227 80 Electric Program Supervisor - Substations $10,901 – $14,172 41 Electric Program Supervisor - Meter Shop $10,901 – $14,172 89 Electric Program Supervisor - Service Planning $10,759 – $13,987 135 Assistant City Attorney I $10,665 – $13,865
81 Electric Manager $10,463 – $13,602
108 Electrical Engineer $10,454 – $13,591
68 Operations/Compliance Engineer $10,454 – $13,591
262 Power Plant Engineer II $10,454 – $13,591
112 Assistant City Engineer $10,343 – $13,446

CITY OF REDDING

EXECUTIVE MANAGEMENT PAY-FOR-PERFORMANCE SALARY PLAN
Effective: July 9, 2023
Monthly Salary Range

NO RANGE

NO RANGE
Packet Pg. 1457 Attachment: ExecMgmtSalaryPlan-July 9, 2023 (9.15(a)--Consider Resolution Amending Executive Management Pay for Performance Salary Job Code Title Monthly Salary Range
82 Electric Program Supervisor $10,224 – $13,292
58 Electric Program Supervisor - Operational Technology $10,224 – $13,292 273 Electric Program Supervisor - Vegetation Management $10,224 – $13,292 274 Electric Program Supervisor - Customer Programs $10,224 – $13,292 275 Electric Program Supervisor - Customer Service $10,224 – $13,292 276 Electric Program Supervisor - Compliance $10,224 – $13,292 277 Electric Program Supervisor - Settlements $10,224 – $13,292 278 Electric Program Supervisor - Financial Services $10,224 – $13,292 260 Electric Utility Senior Resource Planner $10,224 – $13,292 155 Electric Utility Senior Project Engineer $10,120 – $13,156 71 Assistant Director of Development Services/Building Official $10,053 – $13,069 93 Deputy Director of Public Works $9,980 – $12,975
54 Cyber Security Officer $9,710 – $12,624
138 Planning /Community Development Manager $9,596 – $12,475 202 Transit Manager $9,596 – $12,475
50 Assistant Director - Community Services $9,505 – $12,356 252 Municipal Utilities Manager $9,505 – $12,356
192 Electric Utility Operational Technology Engineer $9,406 – $12,228 116 Electric Utility Resource Planner $9,406 – $12,228
60 Finance Officer $9,296 – $12,085
72 Environmental Compliance Manager $9,148 – $11,893
127 Building Official $9,124 – $11,861
110 Electric Utility Engineer $8,958 – $11,645
261 Power Plant Engineer I $8,957 – $11,645
151 Deputy City Attorney $8,925 – $11,603
75 Airports Manager $8,839 – $11,491
103 Housing Manager $8,611 – $11,195
153 Deputy Building Official $8,555 – $11,122
182 Geographic Information Systems Manager $8,392 – $10,910 249 Field Foreman-Electrical Technician $8,383 – $10,898 95 Personnel Manager $8,262 – $10,741
90 Risk Manager $8,262 – $10,741
98 Administrator - Office of City Clerk $8,176 – $10,629 99 Administrator - Office of City Treasurer $8,176 – $10,629 131 Economic Development, Innovation and Equity Manager $8,048 – $10,463 121 Electric Utility Engineering Associate $7,837 – $10,189 105 Assistant Finance Officer $7,777 – $10,110
92 Parks & Facilities Manager $7,745 – $10,068
51 Communication Manager $7,714 – $10,028
195 Electric Utility Associate Resource Planner $7,602 – $9,882 107 Energy Services Account Manager $7,503 – $9,754
56 Senior Personnel Analyst $7,489 – $9,736 Packet Pg. 1458 Attachment: ExecMgmtSalaryPlan-July 9, 2023 (9.15(a)--Consider Resolution Amending Executive Management Pay for Performance Salary Job Code Title
209 Assistant Airports Manager $7,368 – $9,579
136 Electric Utility Engineering Assistant II $7,150 – $9,296 166 Purchasing Officer $7,053 – $9,169
113 Electric Utility Field Foreman $5,362 – $8,851
175 Management Assistant to the City Manager $6,706 – $8,718 150 Electric Utility Engineering Assistant I $6,493 – $8,441 165 Parks Superintendent $6,444 – $8,378
169 Recreation Superintendent $6,444 – $8,378
130 Fleet Manager $6,361 – $8,270
185 Police Services Manager $6,361 – $8,270
245 Executive Assistant to the City Manager $5,231 – $6,800 109 Reprographics Manager $5,231 – $6,800
Monthly Salary Range
Packet Pg. 1459 Attachment: ExecMgmtSalaryPlan-July 9, 2023 (9.15(a)--Consider Resolution Amending Executive Management Pay for Performance Salary