CITY OF REDDING, CALIFORNIA
REQUEST FOR PROPOSALS
GENERAL CONDITIONS
1. PUBLIC INFORMATION
All submitted proposals and information included therein or attached thereto shall become public record upon their delivery to the City. Proposals may be reviewed by outside interested parties after all proposals received for a particular project have been reviewed and the intended awardee has been selected.
By submission of a proposal, Consultant understands and agrees that the City of Redding is subject to the California Public Records Act (Cal. Gov. Code section 62500 et seq.), and that all or part of the proposal submitted by Consultant may be subject to disclosure therein regardless of whether the proposal or part thereof is marked as proprietary. The City reserves sole discretion to determine whether disclosure is necessary under State law, and Consultant hereby releases City from all liability relating to such disclosure. City shall have no obligation to litigate the issue of disclosure under the Act on behalf of Consultant.
2. RFP ADDENDA
The City of Redding reserves the right to amend, alter, or revoke this RFP in any manner at any time. At the City’s sole discretion, modifications, clarifications, or additions will be distributed as an addendum to all known proposers. It is the responsibility of all interested parties to verify the existence of addenda (check Purchasing’s website at https://www.cityofredding.gov/government/departments/purchasing/bid_opportunities.php or call/ email the stated City contact).
3. PROPOSAL PREPARATION COSTS
All costs incurred in the preparation and presentation of this proposal shall be wholly absorbed by the vendor.
4. PROPOSALS
All proposals will be firm for a period of ninety (90) calendar days following the required date of submission unless an alternate time frame is stated in the Request for Proposal.
5. DEVIATIONS
If there are any deviations from the specifications set forth herein, the bidder shall note the deviations in his proposal. Failure to note a deviation from the specifications may be grounds for rejection by the City of that particular proposal. Where deviations are noted, the City reserves the right to accept a proposal containing such deviations provided that, in the sole opinion of the City, the deviation or deviations so noted do not affect the overall capability of the alternative item or process proposed to perform the function for which it is to be acquired and such deviations result in lesser total cost to the City for the subject item or service.
Packet Pg. 872 Attachment: 5419 - Development of Infrastructure that Supports a Single-Family Housing Development (9.2(f)--Award Request for Proposals
6. WITHDRAWAL OF PROPOSAL
Any proposer may withdraw their proposal, either personally or by written request at any time prior to the scheduled closing time for the receipt of proposals. Such requests are to be directed to the City Clerk.
7. SELECTION PROCEDURES
Proposals submitted will be subject to the City’s selection procedures for technical and/or professional consultants. Accordingly, final selection will be based upon overall capability to perform services and not exclusively upon cost of services.
The City may make any investigation it deems necessary to determine the ability of a Proposer to carry out the obligations indicated in the Request for Proposal and the submitted Proposal. At the City’s sole discretion, the Proposer shall furnish to the City all information and data for this purpose if materials submitted by, or investigation of, any Proposer fails to satisfy the City that the Proposer is properly qualified to carry out the stated obligations.
The City of Redding reserves the right to accept the proposal that is in the best interest of the City. The City’s decision shall be final.
8. RIGHT TO REJECT PROPOSALS
The City reserves the right to reject any and all proposals, to waive any non-material irregularities or information in any proposal, and to accept or reject any combination of items.
9. AWARD OF CONTRACT
The award of the contract, if it is awarded, shall be made on the basis of availability of budgeted funds and to a responsible Contractor who presents the best value to the City per Redding Municipal Code 4.20.040(C).
4.20.040(C) Procure for the city the needed quality in supplies, services and equipment that prove to be the best value to the city. Determination of best value may take into consideration additional elements beyond cost such as warranty, life cycle related costs, lead time, desired aesthetics, work experience as verified through references or work examples, vendor location, prior work with the city or other factors deemed relevant by the purchasing officer in the procurement of the needed supplies, equipment or work to be performed.
10. CITY OF REDDING BUSINESS LICENSE
The awarded Vendor/Consultant may be required to obtain a City of Redding Business License per Municipal Code 6.02 – Business Licenses.
6.02.020 It is unlawful for any person to be engaged in business in the city without having a valid license from the city to do so, in compliance with any and all regulations contained Packet Pg. 873 Attachment: 5419 - Development of Infrastructure that Supports a Single-Family Housing Development (9.2(f)--Award Request for Proposals
in this chapter pertaining to the business, unless the person is exempt under the provisions of this chapter. No person who is an employee, or the direct representative of a licensee, shall be required to pay a license fee for doing any part of the work of the licensee.
The selected firm shall execute an agreement with the City within ten (10) working days after notification of selection, unless the time for execution has been extended for good cause at the sole discretion of the City. Failure of the selected firm to meet contract submission requirements (e.g. insurance) or failure to timely execute an agreement with the City may result, in the sole discretion of the City, a decision to select from the remaining proposers or to call for new proposals.
11. INSURANCE REQUIREMENTS (IF APPLICABLE)
Consultant shall designate the City of Redding, 777 Cypress Avenue, Redding, CA 96001 as a Certificate Holder of the insurance. Consultant shall furnish City with certificates of insurance and original endorsements effecting the coverages required by this clause.
Certificates and endorsements shall be submitted electronically via the PINS Advantage system. A link will be provided for the Consultant, or their insurance agent, to enter and upload documents directly to PINS Advantage. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved in PINS Advantage by the City’s Risk Manager prior to the commencement of contracted services. City may withhold payments to Consultant if adequate certificates of insurance and endorsements required have not been submitted as described above or provided in a timely manner.
Rev. 10/11/2023
Packet Pg. 874 Attachment: 5419 - Development of Infrastructure that Supports a Single-Family Housing Development (9.2(f)--Award Request for Proposals 05/21/20
INSURANCE REQUIREMENTS
A. Unless modified in writing by City’s Risk Manager, Contractor/Vendor shall maintain the following noted insurance during the duration of the Contract:
Coverage Required Not
Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers’ Compensation and Employers’ Liability $1,000,000 X Workers’ Compensation Declaration Form X
Garagekeepers $500,000 X
Professional Liability (Errors and Omissions) $1,000,000 X Excess Liability Coverage $1,000,000 X
Contractor’s Pollution Liability $1,000,000/$2,000,000
Aggregate
X
Course of Construction (Value equal to contract amount) X On Hook $1,000,000 X
Commercial Aircraft Liability $5,000,000 per occurrence / $500,000 per passenger
X
Auto Liability with MCS-90 endorsement for waste
spills/cleanups
X
(Place an “x” in the appropriate box)
B. Coverage shall be at least as broad as:
1. Insurance Services Office form number CG-0001, Commercial General Liability Insurance, in an amount not less than $1,000,000 per occurrence and $2,000,000 general aggregate for bodily injury, personal injury and property damage; Higher limits may be required on project over $1,000,000 Check with Risk Management
2. Insurance Services Office form number CA-0001 (Ed. 1/87), Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $1,000,000 combined single limits per accident applicable to all owned, non-owned and hired vehicles;
3. Statutory Workers’ Compensation required by the Labor Code of the State of California and Employers' Liability Insurance in an amount not less than $1,000,000 per occurrence. Both the Workers’ Compensation and Packet Pg. 875 Attachment: 5419 - Development of Infrastructure that Supports a Single-Family Housing Development (9.2(f)--Award Request for Proposals 05/21/20
Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents and volunteers;
4. Garagekeepers Liability, $500,000 for vehicles in the care, custody, and control of the Contractor/Vendor.
5. Professional Liability (Errors and Omissions) Insurance, appropriate to Contractor/Vendor’s profession, against loss due to error or omission or malpractice in an amount not less than $1,000,000. To be used for Professional Services Contracts
6. Course of Construction Insurance providing coverage for all "risks" of loss in the amount of the completed project value. To be used when items are stored unprotected and could be damaged and/or trenches and performing construction related work (digging up of asphalt).
7. Contractor Pollution Liability, in the amount of $1,000,000, to include but not limited to coverage for bodily injury, property damage and cleanup arising from pollution conditions created by the contractor or encountered during work at job site. Coverage must apply to cleanup, damage or injury that occurs on, or that originates from, the site. To be used when work is being done in and around waterways (including storm drains) or potential of hazardous waste spills. Also, whenever hauling hazardous materials.
Required on all construction projects over $1,000,000 regardless of location to waterways.
8. Aircraft Liability: $5,000,000 per occurrence for bodily injury, personal injury and property damage. Policy is to have a minimum sublimit of $500,000 per passenger. If Commercial Aircraft Liability insurance or other form with a general aggregate limits is used, the general aggregate limit shall be equal to the required occurrence limit.
9. On-Hook Coverage insuring vehicles in tow for limits sufficient to cover any auto physical damage or a combined single limit of one million ($1,000,000).
10. Automobile Liability, owned, non-owned and hired, including MCS-90 endorsement for waste spills and cleanup.
C. Any deductibles or self-insured retentions must be declared to and approved by City.
At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its elected officials, officers, employees, agents and volunteers; or the Contractor/Vendor shall procure a bond guaranteeing payment of losses and related investigations, claims administration and defense expenses.
D. The General Liability shall contain or be endorsed to contain the following provisions:
Packet Pg. 876 Attachment: 5419 - Development of Infrastructure that Supports a Single-Family Housing Development (9.2(f)--Award Request for Proposals 05/21/20
1. City, its elected officials, officers, employees, and agents are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of Contractor/Vendor; premises owned, leased or used by Contractor/Vendor; or automobiles owned, leased, hired or borrowed by Contractor/Vendor. The coverage shall contain no special limitations on the scope of protection afforded to City, its elected officials, officers, employees, agents and volunteers.
2. The insurance coverage of Contractor/Vendor shall be primary insurance as respects City, its elected officials, officers, employees, agents and volunteers.
Any insurance or self-insurance maintained by City, its elected officials, officers, employees, agents and volunteers, shall be in excess of Contractor/Vendor’s insurance and shall not contribute with it.
3. Coverage shall state that the insurance of Contractor/Vendor shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
4. Each insurance policy required by this Contract shall be endorsed to state that coverage shall not be canceled except after thirty (30) calendar days' prior written notice has been given to City. In addition, Contractor/Vendor agrees that it shall not reduce its coverage or limits on any such policy except after thirty (30) calendar days’ prior written notice has been given to City.
E. Insurance is to be placed with insurers with a current A.M.Best’s rating of no less than A-VII.
F. Contractor/Vendor shall designate the City of Redding as a Certificate Holder of the insurance. Contractor/Vendor shall furnish City with certificates of insurance and original endorsements effecting the coverages required by this clause. Certificates and endorsements shall be furnished to: Risk Management Department, City of Redding, 777 Cypress Avenue, Redding, CA 96001. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City’s Risk Manager prior to the commencement of contracted services. City may withhold payments to Contractor/Vendor if adequate certificates of insurance and endorsements required have not been provided, or not been provided in a timely manner.
G. The requirements as to the types and limits of insurance coverage to be maintained by Contractor/Vendor as required this Contract, and any approval of said insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Contractor/Vendor pursuant to this Contract, including, without limitation, provisions concerning indemnification.
Packet Pg. 877 Attachment: 5419 - Development of Infrastructure that Supports a Single-Family Housing Development (9.2(f)--Award Request for Proposals 05/21/20
H. If any policy of insurance required by this Section is a “claims made” policy, pursuant to Code of Civil Procedure § 342 and Government Code § 945.6, Contractor/Vendor shall keep said insurance in effect for a period of eighteen (18) months after the termination of this Contract.
I. If any damage, including death, personal injury or property damage, occurs in connection with the performance of this Contract, Contractor/Vendor shall immediately notify City’s Risk Manager by telephone at (530) 225-4068. No later than three (3) calendar days after the event, Contractor/Vendor shall submit a written report to City’s Risk Manager containing the following information, as applicable: 1) name and address of injured or deceased person(s); 2) name and address of witnesses; 3) name and address of Contractor/Vendor’s insurance company; and 4) a detailed description of the damage and whether any City property was involved.
NOTE: The City of Redding uses the online insurance program PINS Advantage. Once you have been awarded a contract with the City of Redding you will receive an email from the City of Redding=s online insurance program requesting you to forward the email to your insurance provider(s). Please see attached flyer regarding PINS Advantage.
Contractor=s insurance agent shall furnish the City with certificates of insurance and original endorsements effecting coverage required by this clause through the City=s online insurance program PINS Advantage. All endorsements are to be received via the online PINS Advantage program and approved by the Risk Management Department before the project commences.
Packet Pg. 878 Attachment: 5419 - Development of Infrastructure that Supports a Single-Family Housing Development (9.2(f)--Award Request for Proposals The City of Redding uses PINSAdvantage.com to track Insurance Certificates and all related documents!
HOW IT WORKS?
PINS begins with the City of Redding. The City of Redding logs into PINS and emails a request for insurance to the Vendor/Contractor. The Vendor/Contractor forwards the email onto their Insurance Agent(s). The Insurance Agent(s) logs into www.PINSAdvantage.com and completes the insurance certificate online.
WHAT TO LOOK FOR?
Vendor/Contractor will receive an email from: [email protected] Thank you for your cooperation!
For PINS support or questions on how to use PINS,
please contact [email protected]
Packet Pg. 879 Attachment: 5419 - Development of Infrastructure that Supports a Single-Family Housing Development (9.2(f)--Award Request for Proposals
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Provide direction to staff regarding the location, the purchase and development, and the operation of a Navigation/Day Resource Center.
Fiscal Impact
The Encampment Resolution Lookback Disbursement Funding (ERF-3-L) provides $8,354,955 in grant funds to the City of Redding (City) as detailed in the California Department General Services – Business, Consumer Services and Housing Agency (BCSH) Standard Agreement. As part of the ERF-3-L grant award, $3,000,000 was allocated toward the development of a Day Resource Center (DRC). In addition, $720,000 has been earmarked for a director and case management services upon the completion of the project and for the first three years of operation. There is no impact to the General Fund.
Alternative Action
City Council (Council) may choose to take no action, may choose to consider other DRC location/development alternatives or may choose to not pursue a DRC development project. If Council chooses not to pursue the DRC project, any request for redirection of ERF-3-L funds will need to be reviewed and approved by BCSH and could result in losing the grant award.
MEETING DATE: December 19, 2023
ITEM NO. 9.2(g)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.2(g)--Consider providing direction to staff regarding a Navigation/Day Resource Center
Steve Bade, Assistant City
Manager
Packet Pg. 880
Report to Redding City Council December 14, 2023
Re: 9.2(g) Provide direction to staff regarding a Day Resource Center Page 2 Background/Analysis
At the meeting of November 21, 2023, Council discussed several possible directions with regard to developing a DRC.
Option 1: Publish a request for proposals, seeking input from the development community for possible DRC sites within the requested service area.
Option 2: City to purchase a property and provide a lease option to the operator.
Option 3: City staff to partner with the Good News Rescue Mission (Mission) directly, with regard to the property already in escrow, and determine the Mission’s interest in a DRC.
Council requested additional information for option three and directed staff to contact the Mission. Staff met with Jonathan Anderson, the Mission’s Executive Director. The Mission has been negotiating with the property owner of 3145 Veda Street and 3150 South Market Street (Properties) for more than eight months for the purpose of establising a DRC. Furthermore, the GNRM purchased 3127 Veda Street and 3131 Veda Street, located adjacent to the properties in escrow. The combined properties consist of approximately .59 acres with an existing commercial building of approximately 8,000 square feet, with power, sewer, water, four roll-up doors, and a parking lot.
All parcels are located in a “Heavy Commercial” designated land use area. Under the use regulations, Heavy Commercial will allow a community social service facility use classification upon review and approval of a use permit by the Planning Commission. A community social service facility is defined as any non-commercial facility such as a day center, which may provide meals, showers and/or laundry facilities along with specialized programs and services related to the needs of those using the facility. The GNRM may be able to amend its current use permit to include the new properties.
Overall, the Mission’s preferred option is for the City to provide financing in the form a secured loan to the Mission. The financing would be available for the acquision, development and two to three years of operational funding of the DRC. The City would have no ownership in the project nor a covenant on the property. As proposed, the Mission would operate the facility under a new brand, completely separate from the existing Mission operations. The newly branded entity would collaborate with other agencies and nonprofits to co-locate services at the site. Although not their preferred choice, the Mission would consider a lease-option for purchase of the Properties from the City.
The Mission has received costs estimates from contractors – they have estimated that the cost to renovate the space is approximately $150 per square-foot. Planning and design work would include a high-level master plan for the properties with additional considerations contemplated for existing Mission-owned parcels, improvement plans, construction costs, electrical calculations, and energy efficiency measures. The rehabilitation would include improvements such as Title 24 (Building Code Energy Efficiency Standards), fire safety, Americans with Disabilities Act upgrades and required City permits. The timeline is estimated to be three to four months for predevelopment activities and six-to-eight months for construction which includes framing, new windows and exterior doors, mechanical upgrades, insulation, sheetrock, interior doors and trim, cabinets, finish work signage, appliances, courtyard creation and landscaping.
If the Council approves the City providing financing, staff would draft a development financing agreement that would include the terms, conditions, finance/loan documents and regulatory requirements and return to the City Council for consideration.
Packet Pg. 881
Report to Redding City Council December 14, 2023
Re: 9.2(g) Provide direction to staff regarding a Day Resource Center Page 3 Environmental Review
This is not a project as defined under California Environmental Quality Act, and no further action is required. A National Environmental Policy Act review is not necessary as these are State of California and not Federal funds.
Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
GNRM Properties Location Map Aerial
Packet Pg. 882
Railroad Ave
Veda St
S Market St
Grange St
Grange St
3127 Veda St
Purchased
3100 S. Market
GNRM Existing Shelter
3145 Veda St
Escrow
3150 S. Market St
Escrow
3131 Veda St
Purchased
U.P.R.R
GNRM Properties Location Map / City of Redding
Print Date: December 11, 2023 P:\CommunityServices\ProProjects\Veda Street Location Map.aprx 0 60 120 180
Feet Packet Pg. 883 Attachment: GNRM Properties Location Map Aerial (9.2(g) Provide direction to staff regarding a Day Resource Center)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept the Electric Director’s oral presentation providing a progress update on the City of Redding Electric Utility’s 2026 Strategic Plan.
Background/Analysis
On August 17, 2021, the Council approved City of Redding Electric Utility’s (REU) 2021-2026 Strategic Plan. Since its adoption, REU staff has made significant progress on many strategic goals. This update provides a progress report on the strategic goals, identifies the strategic planning focus for 2024, and provides updated key performance indicators measuring the success of our strategic priorities.
Attachments
Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan MEETING DATE: December 19, 2023
ITEM NO. 9.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(b)--Oral Report on Redding Electric Utility's 2026 Strategic Plan.
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 884
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve Redding Electric Utility’s 2026 Strategic Plan establishing new vision and mission statements, identifying core organizational values; and setting goals.
Fiscal Impact
There is no fiscal impact associated with accepting Redding Electric Utility’s (REU) 2026 Strategic Plan.
Alternative Action
The City Council (Council) could choose to not accept REU’s 2026 Strategic Plan and provide alternative direction to staff.
Background/Analysis
The previous REU 2020 Strategic Plan was approved by the Council in 2015. At that time, REU embarked on a structural overhaul to better align the workforce with customer needs, and the strategic plan helped staff focus on several critical areas, including technology, workforce and culture, communications, and financial stability. To address today’s fast pace of change to the utility industry, REU staff engaged in a new strategic planning effort.
With the assistance of Hometown Connections, Inc. (HCI), an advisory team of community members, City of Redding staff, and members of the Council worked to develop the 2026 Strategic Plan (Plan). The strategic planning team examined REU’s strengths and limitations to confirm the utility’s mission and priorities that will serve as guideposts for long-term project development and planning.
MEETING DATE: August 17, 2021
ITEM NO. 9.5(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan.
Daniel Beans, Director of
Electric Utility
Packet Pg. 885 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic Report to Redding City Council August 10, 2021
Re: 9.5(c)--Redding Electric Utility's Strategic Plan Page 2 New vision and mission statements as well as six core organizational values were identified as part of the strategic plan development process. Additionally, nine strategic goals were identified to allow REU to successfully fulfill its vision and mission:
• Complete Critical Wildfire Mitigation Projects
• Replace Aging Distribution System Infrastructure
• Initiate Distribution Modernization Program Element
• Implement Distribution Risk Management Plan
• Complete Energy Trading Modernization and Integrated Resource Plans • Minimize Compliance Failures and Penalties
• Align Revenue Collection with Cost-of-Service
• Enhance Communication with Customers and the Community • Enhance Employee Development, Attraction, and Retention These goals were designed to aid REU staff in meeting the three strategic priorities identified within the Plan: mitigate risk, maximize reliability, and meet regulations.
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
REU's 2026 Strategic Plan (available online)
Packet Pg. 886 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic Strategic Plan
2021-2026
Redding
Electric Utility
Packet Pg. 887 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic Executive Summary
Proud of our History, Preparing for the Future
Vision, Mission & Core Values
Strategic Priorites
Goals
Acknowledgements
03 05
07 09
10 13
Contents
Packet Pg. 888 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic In 2021, Redding Electric Utility (REU) celebrates 100 years of service. REU takes great pride in helping to make the City of Redding and Shasta County a great place to live, work and play. Today, we continue to provide reliable and a ordable electric service to the residents and businesses of Redding, while developing the flexibility and innovation to respond to the changing utility marketplace. We remain committed to providing strong value to the Redding community far into the future. 03 Executive
Summary
Redding and Shasta County powered
on through the Carr Fire of 2018 and
Snowmaggedon in 2019. The year 2020
represented another challenge for the electric
utility industry. The COVID-19 pandemic
proved to be devastating to our community and
nation as citizens struggled to remain healthy
many parts of the nation as natural disasters
damaged equipment and disrupted lives.
Our employees worked together, as frontline responders, to keep the power on while keeping themselves and our customers safe
As we look ahead, we must continue to
think and act strategically, addressing
changes in technology, customer
expectations, regulations and the climate,
especially related to wildfires. We must
continue to be proactive and adapt quickly
to the changes impacting the electric
utility industry to best serve the Redding
community for the next 100 years. Change
is a constant in the electric utility industry,
and we are determined to act in a way
that best serves our customers and the
community far into the future. As a local,
publicly-owned utility, we are invested in
the success of Redding.
REU completed its previous strategic plan
in 2015. At that time, the organization
embarked on a structural overhaul to
better align the workforce with our
customer needs, and the strategic plan
helped us focus on several critical areas,
including technology, workforce and
culture, communications and financial
stability. To address today’s fast pace
of change to the utility industry, we
engaged in a new strategic planning
face when possible, and virtually when
COVID-19 restrictions reduced our ability
to meet in person. Several meetings were
conducted with City of Redding Council
stakeholders to update REU’s strategic
plan and chart a course for the future.
The strategic planning team examined
our strengths and limitations, confirming
the utility’s mission and priorities that will
serve as guideposts for long-term project
development and planning.
Packet Pg. 889 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic 04 The 2021 Strategic Plan includes several
important updates to our vision, mission and
priorities. The vision statement, identifying
the value we seek to bring to the Redding
community states:
REU makes Redding better by connecting
with our customers and being their trusted
and reliable, community-owned utility
The mission statement, which describes
what we will do to achieve that vision reads:
REU, in partnership with the Redding
community, is committed to improving the
public’s safety and providing reliable, costeffective service Our organizational values will play a key
role in how we fulfill our mission and vision.
We have an obligation to the community to
act in its best interests. As such, we have
identified six core values which will drive
our actions:
• Safety
• Integrity
• Customer Focus
• Teamwork
• Communication
• Stewardship
Looking ahead to the coming years, we
have identified three key areas in which
we must excel for the utility to serve the
Redding community. They are:
• Mitigate Risk
• Maximize Reliability
• Meet Regulations
We believe attention to these three
areas will position us to deliver valuable
service to the community for many years
to come. When the utility was formed
100 years ago, city leaders recognized
the wisdom of allowing the community to
control its own destiny by building and
managing its electric service. Today, the
City continues to deliver value to the
community through the local control of
utility services, maintaining high reliability
at very competitive rates, while keeping
dollars and jobs in the community.
We invite you to review this strategic plan
and share your thoughts with us about the
direction of the utility. You, the customer and
citizen, are the owners of Redding Electric
Utility. The ownership partnership formed in
1921 has been – and will remain – a key to
our success in the years ahead.
Executive
Summary
Packet Pg. 890 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic 05 Proud of Our History,
Preparing for
the Future
The world has changed greatly since REU began distributing electricity to the people of Redding 100 years ago. The utility, too, has seen significant change from the days when it purchased all of its wholesale power from area investor-owned utilities.
Over the decades, we established greater
control over our power supply, contracting
with the federal government for low cost
hydroelectric power, partnering with other
agencies to access significant economies
of scale and building our own generation
facilities. These forward-looking steps by
past city and utility leaders ensured greater
reliability, rate stability and predictability.
As a result, Redding’s lights remain on, bills
remain manageable and its owners’ best
interests are being supported.
And who are those owners? No, it is not Wall
Street investment firms, hedge funds and
other shareholders. It is you, the customers
of the utility and the citizens of Redding. As
a public power utility, rather than an investorowned utility, our owners are our customers.
This means decision-making on issues
important to you, such as rates, power supply,
reliability and customer service, are made
locally. The utility’s governing board is the
Redding City Council, which embraces the
critical role that the utility plays in serving the
community.
REU employs 193 people, who serve
44,905 residential and commercial
customers within the corporate boundries
of the City of Redding. Redding’s
population and economy have remained
remarkably stable for many years. Most of
this century has seen modest growth in
population, lagging behind both California
and the U.S. population growth rates. Yet,
interest in Shasta County’s vast natural
resources continues to drive strong tourism
as well as new residents, citing the area’s
natural beauty as a draw.
The regional economic outlook is good,
having recovered fairly quickly from the
pandemic-fueled downturn. The local
industry is diversified, with the largest
employment sectors being healthcare, retail,
education, food, lodging and government.
Redding is well-positioned to remain
economically vibrant in the years ahead.
The utility must continue to adapt to
changes in our natural environment, new
state and federal regulations, technology
advancements and evolving customer
expectations.
For example, the wildfire “season” is nearly
a year-round issue now. We recognize the
important role we must play in planning for and
responding to fires that may impact our service
territory. In 2021, technology and human
resources in the Redding Fire Department
and Parks Division have been provided
extraordinary tools to battle the wildfires
that continue to impact California. A stateof-the-art emergency operations center was established at our headquarters building
to allow first responders and leaders within
Packet Pg. 891 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic 06 our community to work closely together
to prevent loss of life and property due
to catastrophic events. We work closely
with other Redding departments and first
responders to ensure public safety.
Numerous other technological tools
are being implemented, including new
communication systems, IQ FireWatch
cameras, security cameras in and around
electric infrastructure and aerial imagery
for assessing the vegetation canopy. All of
these tools are congregated in the City of
Redding’s new emergency operations center.
Looking within the utility, REU’s infrastructure,
reliability, and operations are generally in
good shape. However, many years of
deferred maintenance are resulting in more
frequent outages of longer duration. We
are at a pivotal time regarding our aging
distribution system, and significant capital
maintenance and upgrades are needed in
order for us to continue providing reliable
community.
•
but we contend with higher wages at
utilities in Northern California which draw
from our workforce.
• Financially, the utility is in solid shape,
with strong city council leadership and
diversified revenue.
• REU’s system reliability is among the highest
in the state. Yet maintaining system reliability
is a never-ending process, and REU must
continue to evaluate its infrastructure and
ensure upgrades and technology are
manner.
• In concert with a robust power generation,
transmission and distribution system, REU’s
Customer Services Division provides
outstanding service, continually going
above and beyond to help our customers.
In response to the COVID-19 pandemic,
our Customer Services team developed an
extensive community outreach program,
the Comprehensive Community Assistance
Program to inform our customers about
available resources.
These technologies improve operations,
reliability, safety and customer service.
By providing funding for firefighters and
vegetation management personnel, we
have been able to carefully identify and
mitigate potential fire hazards that could
impact or be caused by our utility. In
addition, we have funded a large goat
program as part of vegetation management.
Through proactive measure and working
closely with other city departments, we will
continue to reduce the large risks wildfires
pose to our beautiful area.
Proud of Our History,
Preparing for
the Future
Packet Pg. 892 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic 07 Vision, Mission
& Core Values
Vision
an ideal future for the utility as it serves the
community. It can be thought of as a destination; we hope an ambitious one. With this as our responsibility, our vision statement reads:
REU makes Redding better by connecting
with our customers and being their trusted
and reliable, community-owned utility
High reliability, competitive rates, and excellent customer service are the foundation of our values proposition to the community. Yet
there is much more we can and will do as
we embrace this vision.
Mission
If a vision statement describes a destination,
the mission statement describes how an
organization will get there. What will we do
to attain that vision? Our mission reads:
REU, in partnership with the Redding
community, is committed to improving the
public’s safety and providing reliable,
We very much view our role in the community as a partnership, whether this is with other city departments or outside agencies
or organizations. For example, REU and the
Redding Fire Department and Parks Department coordinate their wildfire prevention and business customers, REU must deliver
-
ally exploring ways to improve all aspects
of our operations.
its enduring mission, vision, and values.
Central to Redding Electric Utility’s planning for the future is ensuring all e orts align with
Packet Pg. 893 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic 08 Core Values
The vision and mission describe what we do
in order to support the Redding community.
But how will the utility act as it fulfills these
priorities? Establishing our core values is a
key part of defining who we are, how we will
serve our customers and how we will treat
each other. These are expectations we have
of ourselves, and to which we will hold each
other accountable. Below are outlined six
core values with corresponding behaviors
and actions.
Safety
• We promote ownership and accountability
for safety within the department
• We have an uncompromising commitment
for the public and employees’ safety
• Through our safety committee, programs,
activities and other initiatives, we promote
a culture of safety
• We promote public safety through
ongoing education, training, awareness
and compliance
• We support an environment in which the
public can be served safely
Integrity
• We are accountable, ethical, honest, and
transparent in everything we do
• We will protect and maintain the goodwill
and trust our community has placed in us
• We are loyal to the public interest and
fairness to all ratepayers
Customer Focus
• REU employees consider the customer
first in every decision we make so that we
consistently exceed customer expectations
• We listen to, anticipate and proactively
serve customer wants and needs
• We focus on delivering what is most
beneficial to our internal and external
customers
• Customers and their safety and
satisfaction are our highest priority
Teamwork
• Our team consists of employees of the
Electric Utility, the City, the Redding
community and Joint Powers Agencies
• We demonstrate the principles of Hungry,
Humble and Smart as explained by the
best-selling author Patrick Lencioni in his
book The Ideal Team Player
• We are a cohesive unit that exists solely
for the benefit of the community we serve
• We believe Teamwork is vital for success
• We feel, act and behave as one big team
Open Communication
• By actively listening to the needs of the
community, we provide timely responses,
create understanding of other’s
perspectives and show we care
• Through transparent communication,
we keep all stakeholders informed,
avoid unnecessary surprises and reduce
confusion
• We are committed to action and follow up
when necessary, to help provide closure
for our stakeholders
Stewardship
• We strive to represent and incorporate the
values and needs of the community in the
management of the utility
• We focus on maximizing value for all
customers over the long term
• We manage our physical assets to
maximize safety and reliability at the
lowest possible cost
• We offer programs and education to help
our customers save money and/or reduce
their impacts on the environment
• We continuously decrease our impacts on
the environment while striving to maintain
affordable electric rates for our customers
Vision, Mission
& Core Values
Packet Pg. 894 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic 09 Strategic
Priorities
Three strategic priorities have been identified as points of emphasis in our strategic planning process. To take advantage of our organizational strengths and to address opportunities for growth and improvement, the following strategic priorities serve as the framework for our strategic plan.
01 Manage risk necessary to protect
our customers from physical and
financial harm.
From wildfires to pandemics, change is
the new normal. We continue to assess
the impacts, risks – and opportunities
– that this change brings.
02 Provide best in class safety,
reliability and services to support
the needs of our community.
We will continue to take the steps
necessary to maintain and upgrade
our distribution system. Reliability
also means being a good corporate
citizen, acting in the best interests
of the community, being responsive
to customer needs, and continuing
to build trust among our many
stakeholders.
03 To comply with all mandated
regulations in a manner
to maximize reliability and
As the state and federal regulatory
landscape continues to change, the
comply with these regulations while
ensuring customer needs for reliability
Packet Pg. 895 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic 10 Below are our initial goals that will be critical in allowing REU to successfully fulfill its vision to “make Redding better.” For most of these, related metrics will allow the utility to keep staff, the City Council, our customers and our community updated on their progress. We look forward to sharing that progress with you.
Goals
GOAL 1
Complete Critical Wildfire
Mitigation Projects
GOAL 2
Replace Aging Distribution
System Infrastructure
GOAL 3
Initiate Distribution
Modernization Program Element
STRATEGIC PRIORITIES
STRATEGIC PRIORITIES
STRATEGIC PRIORITIES
In order to continually manage wildfire risk and the threat to public safety, our Wildfire Mitigation Plan identified several technology and distribution system improvements as significant mitigating factors to the detection and prevention of future wildfires in our service territory. Due to the long lead time for planning and construction, several critical projects remain outstanding with targeted completion within the 5-year horizon. The majority of the technology improvements have been deployed, with the remainder focusing on vegetation inspection systems. Distribution system improvements range from circuit hardening and strategic underground to developing a more coordinated vegetation management program.
With a focus on reliability and completion of an internal aging infrastructure assessment, we identified several distribution system elements that require replacement as part of ongoing routine operations. The projects will center on underground, overhead and meter system replacement to ensure a solid platform is established for future modernization efforts. Key performance indicators such as total customers and outage minutes are used to gauge the effectiveness of aging asset replacement. Replacement of at-risk elements will reduce outage events while providing customers with a higher degree of reliable service.
New technologies are available for deployment on our system to provide faster outage detection, real-time situational awareness and modernized software solutions for system operators. By modernizing our distribution system, we can ensure outage times are minimized by faster detection and response by pinpointing the outage and focusing resources on the needed repairs. Communication systems will be bolstered by the deployment of fiber optic lines on our system with additional spare capacity for future use. Power quality will be enhanced with projects aimed at line capacity upgrades and power factor improvement. mitigate risk
mitigate risk
meet regulations
maximize reliability
maximize reliability
maximize reliability
Packet Pg. 896 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic 11 GOAL 5
Complete Energy Trading
Modernization and Integrated
Resource Plans
GOAL 6
Minimize Compliance Failures
and Penalties
STRATEGIC PRIORITIES
STRATEGIC PRIORITIES
Our recent overhaul of the Energy Risk Management Policy requires detailed processes to ensure all policy requirements are achieved. To align the policy with day-to-day staff duties, a set of business rules will be developed to identify modeling and analytical methods used to provide energy trading and hedging recommendations to the Energy Risk and Risk Oversight Committees. Key performance indicators from this project will center on the ability to keep our energy portfolio metrics in compliance with the Energy Risk Policy. Separately, updated Integrated Resource Plans will be needed to address the future energy landscape in California, with particular focus paid to electrification of transportation and buildings. In addition to focusing on load growth from carbon reduction efforts, additional renewable energy resources will be required to maintain compliance with the State’s Renewable Portfolio Standard requirements.
As part of our North American Electric Reliability Corporation registration as a Transmission Owner and Operator, we are continually striving to develop a culture of compliance with a particular focus on regulatory best practices. To support a culture of compliance and the development of best practices, a Regulatory Compliance Internal Controls project will be completed to ensure any compliance failures are minimized. With the recent requirement to provide enhanced system security by SB699, we will be focusing on bolstering the security at our substations by adding additional layers of protection from sabotage or break-ins. mitigate risk
mitigate risk
meet regulations
meet regulations
maximize reliability
GOAL 4
Implement Distribution Risk
Management Plan
STRATEGIC PRIORITIES
Upon completion of our internal Operational Risk Assessment, we discovered several opportunities to improve our internal working systems to minimize risk from organization structures, inventory and workflow management techniques. In tandem with replacing aging equipment and installing new technologies to modernize the system, several projects have been selected to ensure the support systems are intact to minimize system risk. This includes a new inventory control system, workflow management systems and software, and organizational structure and staffing changes to reflect a more streamlined operations team. mitigate risk maximize reliability
Goals
Packet Pg. 897 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic 12 Goals
GOAL 7
Align Revenue Collection with
Cost-Of-Service
GOAL 8
Enhance Communication with
Customers and the Community
GOAL 9
Enhance Employee Development,
Attraction and Retention
STRATEGIC PRIORITIES
STRATEGIC PRIORITIES
STRATEGIC PRIORITIES
Aligning revenues with the cost of providing electric service is imperative to mitigate risks.
REU will implement two projects to analyze and recommend a rate structure. The first project will consist of a cost-of-service study that analyzes electric consumption patterns of service. To garner support for the rate structure recommendation, a second project will ensure significant outreach and community engagement to gather comments, provide education and develop consensus.
Our Customer Focus Core Value is intended on meeting the needs of our customers and fostering an ownership relationship with the community. To support this core value, we must increase our communication channels, frequency of outreach and inclusion with our customers as we move through this Strategic Plan cycle. Two projects have been developed to meet this goal. A customer needs survey project will help us identify the areas requiring more attention and communication, while an updated communications plan project will ensure we are more effective at stakeholder processes and customer outreach. Future surveys will be used to gauge the effectiveness of these projects.
Because we value our employees, REU identified several employee training and procedure management projects to ensure our teams understand their roles and responsibilities in serving our customers. Furthermore, in order to attract and retain quality and dedicated team members, ongoing labor market analysis must occur to ensure the working environment of REU is one that attracts and maintains employees. This will include studies of pay and benefits and working conditions. These workforce initiatives are imperative to deliver the strategic plan successfully.
mitigate risk
mitigate risk
meet regulations
maximize reliability
mitigate risk
meet regulations
maximize reliability
Packet Pg. 898 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic 13 Acknowledgements
We wish to acknowledge the many contributions of Redding City Council Members and members of the public. This is a better strategic plan because of extensive discussion, debate and challenges that arose throughout this process. Our process relied heavily on an advisory team of stakeholders from within the City and the community for their perspectives. We thank all of you for your commitment and diligence.
ADVISORY TEAM
Chuck Aukland
Public Works Director
Steve Bade
Deputy City Manager
Tim Danielson
Salvation Army Captain
Nate Fairchild
Director of Science and Charter
School Administration
Jake Mangas
President & CEO, Chamber
of Commerce
Mark Mezzano
City Council
Kristen Schreder
City Council
Chad Scott
CEO of the Builder’s
Exchange
Jerrod Vanlandingham
Fire Chief
Packet Pg. 899 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic For more information:
City of Redding Electric Utility
3611 Avtech Parkway
Redding, CA 96002
530.339.7300
www.reupower.com
Packet Pg. 900 Attachment: Previous Staff Report - Item No. 9.5(c)--Consider Redding Electric Utility's 2026 Strategic Plan (9.5(b)--Update REU's 2026 Strategic