Redding City Council
January 16, 2024

Agenda
Regular Meeting
Redding City Council
Council Chambers (Doors open 30 minutes prior)
777 Cypress Avenue, Redding, CA
January 16, 2024
6:00 PM

1. CALL TO ORDER - MAYOR TENESSA AUDETTE
A. Pledge of Allegiance
B. Invocation - Lynn Fritz, Native American Tradition as a Karuk Tribal Descendant/Shasta County Interfaith Forum Chair; and Joey Carroll, Native American Flute.

C. Roll Call

2. PRESENTATIONS
2A. Presentation by Emergent providing an update on 3D printing projects for the City of Redding.

3. PUBLIC COMMENT - for non-agendized matters within the city’s jurisdiction.

PURSUANT TO THE BROWN ACT, CITY COUNCIL CANNOT TAKE ACTION ON PUBLIC

COMMENT ITEMS
The City Council will allocate up to a maximum of three minutes per speaker for 30 minutes total, at the beginning of the meeting for Public Comment for non-agendized matters within the City’s jurisdiction.

The Mayor will determine the order of the speakers. If 30 minutes is not adequate to accommodate all of the individuals who have submitted a Speaker Request Form to the City Clerk, the Council will trail this item to the end of the open session agenda. The remaining speakers will address the City Council at that time.

If anyone wishes to address the City Council on any item considered at this meeting before or during Council’s consideration of that item, please fill out a blue Speaker Request Form, located in the lighted alcoves at the back of the Council Chambers, and submit it to the City Clerk. The City Council will allocate up to a maximum of three minutes per speaker for each agenda item. Staff reports are available on-line at the City’s web site at www.cityofredding.gov or in the Public View binder located on the podium at the north side of the Chambers.

PLEASE SILENCE YOUR CELL PHONES. THANK YOU.

Redding City Council January 16, 2024

4. CONSENT CALENDAR
The Consent Calendar contains items considered routine and/or which have been individually scrutinized by City Council Members and are anticipated to require no further deliberation. If a member of the public wishes to address an item on the Consent Calendar, please fill out a Speaker Request Form and submit it to the City Clerk before the Consent Calendar is considered. It shall be the prerogative of any Council Member, before the Consent Calendar is acted upon, to: (1) comment on an item; (2) respond to any public comment on an item; (3) request the record reflect an abstention or nay vote on an item; or (4) remove an item and place it on the Regular portion of the agenda for delivery of a staff report and/or an extended discussion or deliberation.

4.1(a). Affirm a position supporting a new bill similar to Senate Bill 76 (Wiener) that would allow cities to designate entertainment zones where a patron could carry an alcoholic drink between establishments; and authorize staff to generate a statement of support and/or a letter of support to be signed by the Mayor and sent to the Office of Scott Wiener.

4.2(c). Authorize the following actions relative to the Community Development Block Grant Disaster Recovery Multi-Family Housing Program guidelines:
(1) Adopt Resolution acknowledging Kennett Court Senior Apartments is complete pursuant to City of Redding requirements and the Community Development Block Grant-Disaster Recovery Multi-Family Housing Program guidelines;
(2) Find that adopting a completion resolution is not considered a project under the California Environmental Quality Act. The actual construction of the project was previously reviewed for CEQA compliance; and (3) Find that adopting a completion resolution is exempt under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3).

4.5(a). Authorize and approve the following modifications relative to the previously awarded Bid Schedule No. 5231, Furnish and Deliver 15kV Cable to The Okonite Cable Company (Okonite):
(1) Accept proposed changes in base contract pricing for contract year 3 and contract year 4;
(2) Amend the award amount previously issued to Okonite from a total of $303,799 to a not-to-exceed amount of $1.5 million per contract year based on line item evaluated pricing;
(3) Authorize the City Manager, or designee, to approve price adjustments due to metals escalation and de-escalation relative to the established base price; and
(4) Approve Purchase Order 115278 in the amount of $644,856.50 for additional cable.

4.5(b). Award Bid Schedule No. 5427, Padmount Distribution Transformers, to Hyundai Corporation USA (Hyundai) in the amount of $3,886,718.55, including tax, for the Redding Electric Utility.

Redding City Council January 16, 2024

4.5(c). Authorize and approve the following:
(1) Adopt Resolution approving and adopting the 25th Amendment to City Budget Resolution No. 2023-060 appropriating an additional $220,000 for offsite hosting and licensing fees related to Energy Trading and Modernization;
(2) Approve the First Amendment to with Power Settlements Consulting and Software LLC (“Power Settlements”) (C-8458) to move from on-premise to a hosted environment off-premise;
(3) Authorize staff to negotiate a one-time hosted environment implementation fee for a not-to-exceed fee of $120,750 with Power Settlements, which includes a 15 percent contingency; and (4) Authorize the City Manager, or designee, to execute software license agreements associated with this project and to approve any required amendments to the agreements.

4.6(a). Authorize the following actions relative to Request for Proposals Schedule No. 5418, Architectural and Engineering Design Services for the South City Park Project:
(1) Award to Gates & Associates;
(2) Authorize the City Manager, or designee, to execute a Consulting and Professional Services Contract with Gates & Associates for an amount not to exceed $623,050; and
(3) Authorize the City Manager, or designee, to approve any amendments up to $62,300.

4.11(a). Authorize the following actions relative to Bid Schedule No. 5414 for furnishing various chemicals:
(1) Award contracts to Helix Labs, Wintersun Chemical, Thatcher Chemical, and Univar USA, Inc., for a total annual evaluated cost of $339,965.50 through December 31, 2024, not inclusive of sales tax, mill fees, or shipping;
(2) Authorize staff to purchase various chemicals from each of the suppliers depending on market availability or delays in product delivery; and (3) Authorize the Purchasing Officer to approve quarterly rate changes and manufacturer price increases.

4.11(b). Authorize the following actions relative to Bid Schedule No. 5431 for furnishing liquid chlorine, sodium bisulfite, and sodium hypochlorite:
(1) Award to Thatcher Company of California, Inc. for a total annual evaluated cost of $609,275 (not including tax and freight); (2) Authorize the Purchasing Officer to approve the annual contract extensions through December 31, 2028; and
(3) Authorize the Purchasing Officer to approve price adjustments per manufacturer price increases, inflation, and other market factors.

4.11(c). Accept Bid Schedule No. 5362 (Job No. 2698), ADA Curb Ramps Project 2023, awarded to Axner Excavating, Inc., as satisfactorily complete, with a final cost of $330,606.46.

Redding City Council January 16, 2024

4.11(d). Accept Bid Schedule No. 5367 (Job No. 2692), Wastewater Treatment Plant Generators, awarded to Stewart Engineering, Inc. as satisfactorily complete, with a final cost of $519,158.07.

4.11(e). Authorize and approve the following actions relative to the License Agreement with the United States of America, Department of Energy, Western Area Power Administration at the southwest end of Mercedes Lane;
(1) Approve and authorize the Mayor, or designee, to execute the License Agreement; and
(2) Find that this action is categorically exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 – Existing Facilities.

4.11(f). Authorize the following actions relative to Bid Schedule No. 5424, Street Striping and Pavement Marking Services Contract:
(1) Award to Specialized Pavement Marking, LLC, in the amount of $244,050;
(2) Find that the action is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 – Existing Facilities; and
(3) Authorize the Purchasing Officer to extend the contract, if mutually agreeable, with all prices, terms, and conditions remaining the same, for two additional one-year periods.

RECOMMENDATION: ACCEPT, AFFIRM, ACKNOWLEDGE, ADOPT,

APPROVE, AND/OR AUTHORIZE ALL ITEMS ON THE CONSENT
CALENDAR.

5. APPOINTMENTS
Mayor Tenessa Audette

5.1. Consider reappointment to the City of Redding (City) Administrative Hearings Board.

Recommendation:

Approve the Mayor’s recommendation to reappoint Kelly Kafel to the City’s Administrative Hearings Board to serve an additional four-year term effective February 1, 2024, and expiring January 31, 2028.

Redding City Council January 16, 2024

9. REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES
Mayor and Council Members
9A. City Council Liaison Assignments for Calendar Year 2024 Recommendation:

Information only.

Audit Committee
9B. Consider Reports from Independent Auditors for the year ended June 30, 2023.

Recommendation:

Approve the Audit Committee’s recommendation to accept the Statement on Auditing Standards AU-C 260 Letter and the draft copy of the Single Audit Reports for the year ended June 30, 2023.

Development Services

9.4(a). Consider accepting the Visions and Guiding Principles Framework for the update to the Redding Riverfront Specific Plan.

Recommendation:

Accept the Visions and Guiding Principles Framework for the update to the Redding Riverfront Specific Plan.

Finance

9.10(a). Consider acceptance of the City of Redding Annual Comprehensive Financial Report for the year ended June 30, 2023.

Recommendation:

Accept the City of Redding Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023.

Personnel

9.15(a). Consider Resolution creating a new classification titled Public Works Manager - Financial and amending the Executive Management Pay-for-Performance Salary Plan to add the new classification.

Recommendation:

Adopt Resolution, effective January 21, 2024, creating a new classification titled Public Works Manager - Financial and amending the Executive Management Payfor-Performance Salary Plan to add the new classification.

Redding City Council January 16, 2024

11. COUNCIL TRAVEL REPORT(S)
City Council Member attendance at conference/meetings reimbursed at City expense. {Requirement of Assembly Bill 1234}
[A-050-060]
Information Only

12. SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS

FOR FUTURE CITY COUNCIL MEETINGS

13. ADJOURNMENT
Pursuant to the Brown Act, non-confidential materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for inspection during normal business hours at the Office of the City Clerk, 3rd Floor, City Hall, 777 Cypress Avenue, Redding, California.

City Council Meetings will be televised live on Shasta Community Access Channels via Charter/Spectrum Cable channel 181, and will be rerun on Thursday at 12:30 p.m. during the week in which the meeting is held. Additionally, the meeting can be viewed online at the following: https://www.shastaartscouncil.org/scactv. Video of the City Council meetings can also be viewed on the City’s web site at http://www.cityofredding.gov/. Open the Services tab, and select City Council Videos.

In compliance with Title II of the Americans with Disabilities Act, the City of Redding will make available to persons with disabilities modifications or accommodations including auxiliary aids or services necessary to participate in public meetings. A person needing assistance should contact the Redding City Clerk by telephone at (530) 225-4447 or in person, or by mail at 777 Cypress Avenue, 3rd Floor, Redding, California 96001 at least three (3) working days in advance.

The City of Redding will ensure that no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination under any of its projects, activities, services, or business opportunities on the basis of race, color, national origin, age, sex, or disability, as afforded by Title VI of the Civil Rights Act of 1964 and related statutes as amended. All persons, regardless of their citizenship status, are covered under this regulation.

Questions, complaints, or requests for accommodations or additional information may be forwarded to the ADA & Title VI Coordinator at 777 Cypress Avenue, Attn: Personnel Dept., Redding, California 96001, Phone (530) 225-4065.

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Informational item only.

MEETING DATE: January 16, 2024
ITEM NO. 2A
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 2A--Presentation by Emergent providing an update on 3D printing projects for the City of Redding.

Sharlene Tipton, City Clerk
Packet Pg. 7

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Affirm a position supporting a new bill similar to Senate Bill 76 (Wiener) that would allow cities to designate entertainment zones where a patron could carry an alcoholic drink between establishments; and authorize staff to generate a statement of support and/or a letter of support to be signed by the Mayor and sent to the Office of Scott Wiener.

Fiscal Impact
There is no fiscal impact with establishing support for, and/or, sending a statement or letter in support of, a bill similar to Senate Bill (SB) 76 (Wiener).

Alternative Action
The City Council (Council) could choose to not support a bill similar to SB 76 and refrain from issuing a statement or sending a letter of support to the Office of Scott Wiener. The Council could remain neutral, thereby refraining from taking a stance on potential legislation.

Background/Analysis
SB 76 was approved by Governor Newsom in 2023. Senator Scott Wiener wrote SB 76 to permit Entertainment Zones in the City and County of San Francisco. The purpose of the bill is to designate temporary entertainment zones, where bars and restaurants can sell alcoholic beverages for consumption in a designated area.

MEETING DATE: January 16, 2024
ITEM NO. 4.1(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76 Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 8
Report to Redding City Council January 11, 2024
Re: 4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76 Page 2 It is similar to jurisdictions that authorize open container zones for festivals, and similar outdoor events where only outside vendors are allowed to sell alcohol in the designated area. SB 76 allows brick-and-mortar restaurants and bars inside of the entertainment zone to participate and allows customers to carry their alcoholic beverages outside of the building into the designated event. This allows all businesses in the entertainment zone to participate on an equal playing field to aid in economic recovery and revive downtown areas.

A bill similar to SB 76 would allow all California cities and counties to be able to participate in pursuing entertainment zones. The bill would set specific criteria for creating an entertainment zone such as consulting with local law enforcement on any potential impacts.

Senator Scott Wiener’s Office would like a statement of support that is signed by the Mayor to introduce with their press release when the bill is publicized. A letter of support would not be needed until after the bill is introduced.

Council Priority/City Manager Goals
This item is a routine agenda item.

Attachments
Senate Bill No. 76, Chapter 700
Packet Pg. 9
Senate Bill No. 76
CHAPTER 700
An act to amend Sections 23357, 23358, 23396, and 23552 of, to add Section 23039.5 to, and to add Article 5 (commencing with Section 25690) to Chapter 16 of Division 9 of, the Business and Professions Code, relating to alcoholic beverages.
[Approved by Governor October 10, 2023. Filed with Secretary of State October 10, 2023.]
legislative counsel
’
s digest
SB 76, Wiener. Alcoholic beverages: music venue license: entertainment zones: consumption.
(1)  The Alcoholic Beverage Control Act contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law provides for various annual fees for the issuance of alcoholic beverage licenses, depending upon the type of license issued. Existing law authorizes the department to issue a music venue license, as defined, that allows the licensee to sell beer, wine, and distilled spirits at retail for consumption on the premises in a music entertainment facility, as defined. Existing law makes selling, giving, delivering, or purchasing an alcoholic beverage between the hours of 2 a.m. and 6 a.m. of the same day a misdemeanor. Existing law further limits a music venue licensee’s authorization to sell, serve, and permit consumption of alcoholic beverages to the time period from 2 hours before a live performance until one hour after the live performance. Existing law authorizes the department to make any examination of the books and records of any licensee and makes any person who fails to preserve the books for inspection guilty of a misdemeanor.

This bill would authorize a licensee under a music venue license to apply to the department for a duplicate license or licenses, as prescribed. The bill would also authorize a music venue licensee to sell, serve, and permit consumption of alcoholic beverages during private events or private functions not open to the general public within any hours of operation permitted by its license, regardless of whether any live performance occurs. The bill would exempt the licensee from having to meet certain requirements generally imposed on a music entertainment facility in connection with and during a private event or private function if specified conditions are met.

The bill would require the licensee to keep records demonstrating compliance with these provisions for the preceding 3 calendar years and to provide these records to the department upon request. The bill would make a licensee’s failure to keep the required records or provide them to the department

92 Packet Pg. 10
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) grounds for disciplinary action punishable as a misdemeanor and would, therefore, expand the scope of a crime, thereby imposing a state-mandated local program.
(2)  Under existing law, any person possessing an open container of an alcoholic beverage in any city, county, or city and county-owned public place, as specified, or any regional park or recreation and park district, is guilty of an infraction if the city or county has enacted an ordinance that prohibits the possession of those containers or the consumption of alcoholic beverages in those areas, except as specified.

Existing law, the Planning and Zoning Law, authorizes the legislative body of any city or county to adopt ordinances regulating zoning within its jurisdiction, as specified.

Existing law authorizes a licensed beer manufacturer, a licensed winegrower, and any on-sale licensee to sell certain alcoholic beverages for consumption on or off the premises, as specified.

This bill, additionally, would authorize a licensed beer manufacturer, a licensed winegrower, and any on-sale licensee to permit consumers to leave the premises with open containers of alcoholic beverages for consumption off the premises within an entertainment zone, subject to certain conditions.

The bill would define “entertainment zone” for purposes of the Alcoholic Beverage Control Act as a zone created by ordinance on or after January 1, 2024, in the City and County of San Francisco, that authorizes consumption of one or more types of alcoholic beverages on public streets, sidewalks, or public rights-of-way adjacent to and during a special event permitted or licensed by the department. The bill would require the City and County of San Francisco, if it establishes an entertainment zone, to provide specified information relating to the entertainment zone to the department and establish a process or procedure by which persons in possession of alcoholic beverages in the entertainment zone may be readily identifiable as being 21 years of age or older.

This bill would make legislative findings and declarations as to the necessity of a special statute for City and County of San Francisco. (3)This bill would incorporate additional changes to Section 23357 of the Business and Professions Code proposed by SB 788 to be operative only if this bill and SB 788 are enacted and this bill is enacted last.

This bill would incorporate additional changes to Section 23358 of the Business and Professions Code proposed by AB 1704 to be operative only if this bill and AB 1704 are enacted and this bill is enacted last. (4)  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.
92 Ch. 700 — 2 —
Packet Pg. 11
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) The people of the State of California do enact as follows:

SECTION 1. Section 23039.5 is added to the Business and Professions Code, to read:
23039.5. “Entertainment zone” means a zone created by ordinance on or after January 1, 2024, in the City and County of San Francisco that authorizes consumption of one or more types of alcoholic beverages on public streets, sidewalks, or public rights-of-way adjacent to and during a special event permitted or licensed by the department.

SEC. 2. Section 23357 of the Business and Professions Code is amended to read:
23357. (a)  A licensed beer manufacturer may, at the licensed premises of production, sell to consumers for consumption off the premises beer that is produced and bottled by, or produced and packaged for, that manufacturer.

Licensed beer manufacturers may also exercise any of the following privileges:
(1)  Sell that beer to any person holding a license authorizing the sale of beer.
(2)  Sell that beer to consumers for consumption on the manufacturer’s licensed premises or on premises owned by the manufacturer that are contiguous to the licensed premises and which are operated by and for the manufacturer.
(3)  Sell beer and wine, regardless of source, to consumers for consumption at a bona fide public eating place on the manufacturer’s licensed premises or at a bona fide public eating place on premises owned by the manufacturer which are contiguous to the licensed premises and which are operated by and for the manufacturer.
(4)  (A)  Permit consumers to leave the premises with open containers of alcoholic beverages for consumption off the premises within an entertainment zone if all of the following conditions are satisfied:
(i)  The premises is located within the entertainment zone. (ii)  Consumption of that type of alcoholic beverage is authorized by the ordinance creating the entertainment zone.
(iii)  Open alcohol containers only leave the premises during the hours allowed by the ordinance establishing the entertainment zone. (iv)  Patrons with open containers exit the premises directly into an entertainment zone.
(v)  All alcoholic beverages in the entertainment zone are purchased only at a licensed premises located within the entertainment zone. (vi)  The premises expressly prohibits open containers or closed containers of alcoholic beverages acquired outside their premises. (vii)  Delivery of alcoholic beverages to consumers within the entertainment zone by the licensee or by any third-party delivery service is expressly prohibited unless the delivery is to a residential building or private business that is not a licensee.
92 — 3 — Ch. 700
Packet Pg. 12
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) (viii)  No alcoholic be
verages purchased at the licensed premises may
leave the premises in an open glass or metal container for consumption in an entertainment zone.
(ix)  The licensee annually submits their notice of intent to participate in an open container entertainment zone to the department. (B)  This paragraph does not require a licensee to sell any alcoholic beverage for consumption off the premises within an entertainment zone. (C)  Licensees whose privileges are restricted due to operating conditions or other statutory restrictions may be prohibited from exercising entertainment zone privileges that are contrary to their operating conditions. For purposes of this paragraph, any restrictions on the exercise of off-sale privileges shall apply to the removal of alcoholic beverages from the licensed premises for consumption in the entertainment zone.
(b)  Notwithstanding any other provision of this division, licensed beer manufacturers and holders of out-of-state beer manufacturer’s certificates may be issued and may hold retail package off-sale beer and wine licenses.

Alcoholic beverage products sold at or from the off-sale premises that are not produced and bottled by, or produced and packaged for, the beer manufacturer shall be purchased by the beer manufacturer only from a licensed wholesaler.
(c)  Notwithstanding any other provision of this division, a licensed beer manufacturer that produces more than 60,000 barrels of beer a year may manufacture cider or perry at the licensed premises of production and may sell cider or perry to any licensee authorized to sell wine. For purposes of this subdivision, “cider” and “perry” have the meanings provided in Section

4.21(e)(5) of Title 27 of the Code of Federal Regulations. This subdivision does not alter or amend the classification of cider or perry as wine for any purpose other than that provided by this section.
(d)  A beer manufacturer may also have upon the licensed premises, or on premises owned by the manufacturer that are contiguous to the licensed premises and are operated by and for the manufacturer all beers and wines, regardless of source, for sale or service only to guests during private events or private functions not open to the general public. Alcoholic beverage products sold at the premises that are not produced and bottled by, or produced and packaged for, the beer manufacturer shall be purchased by the beer manufacturer only from a licensed wholesaler. All alcoholic beverages sold or served shall be produced by a licensee authorized to manufacture the product.

SEC. 2.5. Section 23357 of the Business and Professions Code is amended to read:
23357. (a)  A licensed beer manufacturer may, at the licensed premises of production, sell to consumers for consumption off the premises beer that is produced and bottled by, or produced and packaged for, that manufacturer.

Licensed beer manufacturers may also exercise any of the following privileges:
(1)  Sell that beer to any person holding a license authorizing the sale of beer.
92 Ch. 700 — 4 —
Packet Pg. 13
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) (2)  Sell that beer to consumers for consumption on the manufacturer’s licensed premises or on premises owned by the manufacturer that are contiguous to the licensed premises and which are operated by and for the manufacturer.
(3)  Sell beer and wine, regardless of source, to consumers for consumption at a bona fide public eating place on the manufacturer’s licensed premises or at a bona fide public eating place on premises owned by the manufacturer which are contiguous to the licensed premises and which are operated by and for the manufacturer.
(4)  (A)  Permit consumers to leave the premises with open containers of alcoholic beverages for consumption off the premises within an entertainment zone if all of the following conditions are satisfied:
(i)  The premises is located within the entertainment zone. (ii)  Consumption of that type of alcoholic beverage is authorized by the ordinance creating the entertainment zone.
(iii)  Open alcohol containers only leave the premises during the hours allowed by the ordinance establishing the entertainment zone. (iv)  Patrons with open containers exit the premises directly into an entertainment zone.
(v)  All alcoholic beverages in the entertainment zone are purchased only at a licensed premises located within the entertainment zone. (vi)  The premises expressly prohibits open containers or closed containers of alcoholic beverages acquired outside their premises. (vii)  Delivery of alcoholic beverages to consumers within the entertainment zone by the licensee or by any third-party delivery service is expressly prohibited unless the delivery is to a residential building or private business that is not a licensee.
(viii)  No alcoholic beverages purchased at the licensed premises may leave the premises in an open glass or metal container for consumption in an entertainment zone.
(ix)  The licensee annually submits their notice of intent to participate in an open container entertainment zone to the department. (B)  This paragraph does not require a licensee to sell any alcoholic beverage for consumption off the premises within an entertainment zone. (C)  Licensees whose privileges are restricted due to operating conditions or other statutory restrictions may be prohibited from exercising entertainment zone privileges that are contrary to their operating conditions. For purposes of this paragraph, any restrictions on the exercise of off-sale privileges shall apply to the removal of alcoholic beverages from the licensed premises for consumption in the entertainment zone.
(b)  Notwithstanding any other provision of this division, licensed beer manufacturers and holders of out-of-state beer manufacturer’s certificates may be issued and may hold retail package off-sale beer and wine licenses.

Alcoholic beverage products sold at or from the off-sale premises that are not produced and bottled by, or produced and packaged for, the beer manufacturer shall be purchased by the beer manufacturer only from a licensed wholesaler.
92 — 5 — Ch. 700
Packet Pg. 14
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) (c)  Notwithstanding any other provision of this division, a licensed beer manufacturer may manufacture cider or perry at the licensed premises of production and may sell cider or perry to any licensee authorized to sell wine. For purposes of this subdivision, “cider” and “perry” have the meanings provided in Section 4.21(e)(8) of Title 27 of the Code of Federal Regulations. This subdivision does not alter or amend the classification of cider or perry as wine for any purpose other than that provided by this section.
(d)  A beer manufacturer may also have upon the licensed premises, or on premises owned by the manufacturer that are contiguous to the licensed premises and are operated by and for the manufacturer all beers and wines, regardless of source, for sale or service only to guests during private events or private functions not open to the general public. Alcoholic beverage products sold at the premises that are not produced and bottled by, or produced and packaged for, the beer manufacturer shall be purchased by the beer manufacturer only from a licensed wholesaler. All alcoholic beverages sold or served shall be produced by a licensee authorized to manufacture the product.

SEC. 3. Section 23358 of the Business and Professions Code is amended to read:
23358. (a)  Licensed winegrowers, notwithstanding any other provisions of this division, may also exercise the following privileges:
(1)  Sell wine and brandy to any person holding a license authorizing the sale of wine or brandy.
(2)  Sell wine and brandy to consumers for consumption off the premises where sold.
(3)  Sell wine to consumers for consumption on the premises. (4)  Sell all beers, wines, and brandies, regardless of source, to consumers for consumption on the premises in a bona fide eating place as defined in Section 23038, which is located on the licensed premises or on premises owned by the licensee that are contiguous to the licensed premises and which is operated by and for the licensee. At such bona fide public eating place beer, wine, and brandy may be used in the preparation of food and beverages to be consumed on the premises.
(5)  (A)  Permit consumers to leave the premises with open containers of alcoholic beverages for consumption off the premises within an entertainment zone if all of the following conditions are satisfied:
(i)  The premises is located within the entertainment zone. (ii)  Consumption of that type of alcoholic beverage is authorized by the ordinance creating the entertainment zone.
(iii)  Open alcohol containers only leave the premises during the hours allowed by the ordinance establishing the entertainment zone. (iv)  Patrons with open containers exit the premises directly into an entertainment zone.
(v)  All alcoholic beverages in the entertainment zone are purchased only at a licensed premises located within the entertainment zone. 92 Ch. 700 — 6 —
Packet Pg. 15
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) (vi)  The premises expressly prohibits open containers or closed containers of alcoholic beverages acquired outside their premises. (vii)  Delivery of alcoholic beverages to consumers within the entertainment zone by the licensee or by any third-party delivery service is expressly prohibited unless the delivery is to a residential building or private business that is not a licensee.
(viii)  No alcoholic beverages purchased at the licensed premises may leave the premises in an open glass or metal container for consumption in an entertainment zone.
(ix)  The licensee annually submits their notice of intent to participate in an open container entertainment zone to the department. (B)  This paragraph does not require a licensee to sell any alcoholic beverage for consumption off the premises within an entertainment zone. (C)  Licensees whose privileges are restricted due to operating conditions or other statutory restrictions may be prohibited from exercising entertainment zone privileges that are contrary to their operating conditions. For purposes of this paragraph, any restrictions on the exercise of off-sale privileges shall apply to the removal of alcoholic beverages from the licensed premises for consumption in the entertainment zone.
(6)  Produce spirits of wine and blend those spirits of wine into wine produced by the winegrower or sell those spirits of wine to an industrial alcohol dealer.
(b)  A winegrower may also have upon the premises all beers, wines, and brandies, regardless of source, for sale or service only to guests during private events or private functions not open to the general public. Alcoholic beverage products sold at the premises that are not produced and bottled by, or produced and packaged for, the winegrower shall be purchased by the winegrower only from a licensed wholesaler.
(c)  A winegrower shall actually produce on the winegrower’s licensed premises by conversion of grapes, berries, or other fruit, into wine, not less than 50 percent of all wines sold to consumers on the winegrower’s licensed premise or premises and any licensed branch premise or premises. (d)  The department may, if it shall determine for good cause that the granting of any such privilege would be contrary to public welfare or morals, deny the right to exercise any on-sale privilege authorized by this section in either a bona fide eating place the main entrance to which is within 200 feet of a school or church, or on the licensed winery premises, or both. (e)  Nothing in this section or in Section 23390 is intended to alter, diminish, replace, or eliminate the authority of a county, city, or city and county from exercising land use regulatory authority by law to the extent the authority may restrict, but not eliminate, privileges afforded by these sections.

SEC. 3.5. Section 23358 of the Business and Professions Code is amended to read:
23358. (a)  Licensed winegrowers, notwithstanding any other provisions of this division, may also exercise the following privileges:
92 — 7 — Ch. 700
Packet Pg. 16
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) (1)  Sell wine and brandy to any person holding a license authorizing the sale of wine or brandy.
(2)  Sell wine and brandy to consumers for consumption off the premises where sold.
(3)  Sell wine to consumers for consumption on the premises. (4)  Sell all beers, wines, and brandies, regardless of source, to consumers for consumption on the premises in a bona fide eating place as defined in Section 23038, which is located on the licensed premises or on premises owned by the licensee that are contiguous to the licensed premises and which is operated by and for the licensee. At such a bona fide public eating place beer, wine, and brandy may be used in the preparation of food and beverages to be consumed on the premises.
(5)  (A)  Permit consumers to leave the premises with open containers of alcoholic beverages for consumption off the premises within an entertainment zone if all of the following conditions are satisfied:
(i)  The premises is located within the entertainment zone. (ii)  Consumption of that type of alcoholic beverage is authorized by the ordinance creating the entertainment zone.
(iii)  Open alcohol containers only leave the premises during the hours allowed by the ordinance establishing the entertainment zone. (iv)  Patrons with open containers exit the premises directly into an entertainment zone.
(v)  All alcoholic beverages in the entertainment zone are purchased only at a licensed premises located within the entertainment zone. (vi)  The premises expressly prohibits open containers or closed containers of alcoholic beverages acquired outside their premises. (vii)  Delivery of alcoholic beverages to consumers within the entertainment zone by the licensee or by any third-party delivery service is expressly prohibited unless the delivery is to a residential building or private business that is not a licensee.
(viii)  No alcoholic beverages purchased at the licensed premises may leave the premises in an open glass or metal container for consumption in an entertainment zone.
(ix)  The licensee annually submits their notice of intent to participate in an open container entertainment zone to the department. (B)  This paragraph does not require a licensee to sell any alcoholic beverage for consumption off the premises within an entertainment zone. (C)  Licensees whose privileges are restricted due to operating conditions or other statutory restrictions may be prohibited from exercising entertainment zone privileges that are contrary to their operating conditions. For purposes of this paragraph, any restrictions on the exercise of off-sale privileges shall apply to the removal of alcoholic beverages from the licensed premises for consumption in the entertainment zone.
(6)  Produce spirits of wine and blend those spirits of wine into wine produced by the winegrower or sell those spirits of wine to an industrial alcohol dealer or a distilled spirits manufacturer.
92 Ch. 700 — 8 —
Packet Pg. 17
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) (b)  A winegrower may also have upon the premises all beers, wines, and brandies, regardless of source, for sale or service only to guests during private events or private functions not open to the general public. Alcoholic beverage products sold at the premises that are not produced and bottled by, or produced and packaged for, the winegrower shall be purchased by the winegrower only from a licensed wholesaler.
(c)  A winegrower shall actually produce on the winegrower’s licensed premises by conversion of grapes, berries, or other fruit, into wine, not less than 50 percent of all wines sold to consumers on the winegrower’s licensed premises and any licensed branch premises.
(d)  The department may, if it shall determine for good cause that the granting of any such privilege would be contrary to public welfare or morals, deny the right to exercise any on-sale privilege authorized by this section in either a bona fide eating place the main entrance to which is within 200 feet of a school or church, or on the licensed winery premises, or both. (e)  Nothing in this section or in Section 23390 is intended to alter, diminish, replace, or eliminate the authority of a county, city, or city and county from exercising land use regulatory authority by law to the extent the authority may restrict, but not eliminate, privileges afforded by these sections.

SEC. 4. Section 23396 of the Business and Professions Code is amended to read:
23396. (a)  Any on-sale license authorizes the sale of the alcoholic beverage specified in the license for consumption on the premises where sold. No alcoholic beverages, other than beers, may be sold or served in any bona fide public eating place for which an on-sale license has been issued unless the premises comply with the requirements prescribed in Section 23038, 23038.1, 23038.2, or 23038.3.
(b)  (1)  In addition to the privilege in subdivision (a), any on-sale license for a premises located in an entertainment zone authorizes the licensee to permit consumers to leave the licensed premises with open containers of alcoholic beverages for consumption off the premises within the entertainment zone if all of the following conditions are satisfied:
(A)  The alcoholic beverage is specified in both the license and the ordinance creating the entertainment zone.
(B)  Open alcohol containers only leave the premises during the hours allowed by the ordinance establishing the entertainment zone. (C)  Patrons with open containers exit the licensed premises directly into an entertainment zone.
(D)  All alcoholic beverages in the entertainment zone are purchased only at a licensed premises located within the entertainment zone. (E)  The premises expressly prohibits open containers or closed containers of alcoholic beverages acquired outside their premises. (F)  Delivery of alcoholic beverages to consumers within the entertainment zone by the licensee or by any third-party delivery service is expressly prohibited unless the delivery is to a residential building or private business that is not a licensee.
92 — 9 — Ch. 700
Packet Pg. 18
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) (G)  No alcoholic be
verages purchased at the licensed premises may leave
the premises in an open glass or metal container for consumption in an entertainment zone.
(H)  The licensee annually submits their notice of intent to participate in an open container entertainment zone to the department. (2)  This subdivision does not require a licensee to sell any alcoholic beverage for consumption off the premises within an entertainment zone. (3)  Licensees whose privileges are restricted due to operating conditions or other statutory restrictions may be prohibited from exercising entertainment zone privileges that are contrary to their operating conditions. For purposes of this paragraph, any restrictions on the exercise of off-sale privileges shall apply to the removal of alcoholic beverages from the licensed premises for consumption in the entertainment zone.

SEC. 5. Section 23552 of the Business and Professions Code is amended to read:
23552. (a)  In addition to the licenses specified in Section 23320, the department may issue a music venue license to sell beer, wine, and distilled spirits at retail for consumption upon the premises only. A music venue licensee is eligible to obtain a duplicate license or licenses as described in Section 24042 and shall be subject to the same fees charged for a duplicate Type 47 license. (b)  The music venue license may be issued for a music entertainment facility providing alcoholic beverage service. Except as provided in this section, only licensees with a music venue license are authorized to sell beer, wine, and distilled spirits at retail for consumption upon the premises of the music entertainment facility. The license shall only be transferable from person to person at the same premises. A music venue license shall not be transferred or sold for a purchase price or consideration in excess of the original fee paid for that license.
(c)  (1)  Subject to Section 25631, the music venue licensee may sell, serve, and permit consumption of alcoholic beverages only during the time period from two hours before a live performance until one hour after the live performance.
(2)  (A)  A music venue licensee may also sell, serve, and permit consumption of alcoholic beverages to guests during private events or private functions not open to the general public within any hours of operation permitted by its license, regardless of whether any live performance occurs. (B)  (i)  A music entertainment facility shall not be required to meet the requirements of subdivision (c) of Section 23550 in connection with and during a private event or private function provided the facility’s principal purpose shall be to operate as a music entertainment facility. (ii)  A music venue licenseholder must keep records at the licensed premises to show compliance with this paragraph for the preceding three calendar years. Records kept in compliance with this section must be provided to the department upon request pursuant to Section 25753. Failure to keep required records or to provide them to the department upon request shall be grounds for disciplinary action pursuant to Section 25616. 92 Ch. 700 — 10 —
Packet Pg. 19
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) (iii)
For purposes of this subparagraph, “principal purpose” shall mean that the number of private events or private functions occurring at the music entertainment facility does not exceed the number of live entertainment events occurring at the facility in any calendar year.
(d)  (1)  Issuance of the license shall be subject to the provisions of Section 23958.4.
(2)  Issuance of the license shall not be subject to the provisions of Section 23816.
(e)  An on-sale licensee may permit a person under 21 years of age into the music entertainment facility. This subdivision does not authorize the on-sale licensee to sell, furnish, or give any alcoholic beverages to a person under 21 years of age, or to engage in any other activity not otherwise authorized by this division.
(f)  (1)  An on-sale general bona fide public eating place licensee or an on-sale general public premises licensee as of the effective date of this section may exchange that license for a music venue license, subject to the qualifications of the premises as specified in this division. The exchange may be made at any time upon the approval of the department, the payment of an exchange fee of one hundred dollars ($100), and compliance with the provisions of this division relating to the issuance of an original license. (2)  The department may modify its rules regarding the surrender of licenses to implement this subdivision.
(g)  The department may promulgate regulations to implement this article.

SEC. 6. Article 5 (commencing with Section 25690) is added to Chapter 16 of Division 9 of the Business and Professions Code, to read:

Article 5. Entertainment Zones
25690. (a)  If the City and County of San Francisco establishes an entertainment zone, it shall do both of the following:
(1)  Establish a process or procedure by which persons in possession of alcoholic beverages in the entertainment zone may be readily identifiable as being 21 years of age or older.
(2)  Provide all of the following to the department:
(A)  A copy of the ordinance establishing the entertainment zone. (B)  Information as may be necessary to identify the boundaries of the entertainment zone.
(C)  The days and hours of operation of the entertainment zone. (D)  The types of alcoholic beverages permitted within the entertainment zone.
(E)  The approved nonglass and nonmetal containers in which alcoholic beverages may be authorized.
(b)  The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique economic circumstances in the City and County of San Francisco. 92 — 11 — Ch. 700
Packet Pg. 20
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76) SEC. 7. Section 2.5 of this bill incorporates amendments to Section 23357 of the Business and Professions Code proposed by both this bill and Senate Bill 788. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 23357 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 788, in which case Section 2 of this bill shall not become operative.

SEC. 8. Section 3.5 of this bill incorporates amendments to Section 23358 of the Business and Professions Code proposed by this bill and Assembly Bill 1704. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 23358 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 1704, in which case Section 23358 of the Business and Professions Code, as amended by Assembly Bill 1704, shall remain operative only until the operative date of this bill, at which time Section 3.5 of this bill shall become operative, and Section 3 of this bill shall not become operative.

SEC. 9. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

O
92 Ch. 700 — 12 —
Packet Pg. 21
Attachment: Senate Bill No. 76, Chapter 700 (4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to the Community Development Block Grant Disaster Recovery Multi-Family Housing Program guidelines:
(1) Adopt Resolution acknowledging Kennett Court Senior Apartments is complete pursuant to City of Redding requirements and the Community Development Block Grant-Disaster Recovery Multi-Family Housing Program guidelines;
(2) Find that adopting a completion resolution is not considered a project under the California Environmental Quality Act. The actual construction of the project was previously reviewed for CEQA compliance; and
(3) Find that adopting a completion resolution is exempt under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3).

Fiscal Impact
There is no fiscal impact related to this report.

Alternative Action
The City Council (Council) could choose not to adopt the resolution acknowledging that the project is complete. Under this alternative, the City of Redding (City) would not be following the Community Development Block Grant – Disaster Recovery Multi-Family Housing Program (CDBG-DR MHP) grant requirements and the ramifications of not providing the requested resolution are unknown.

MEETING DATE: January 16, 2024
ITEM NO. 4.2(c)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4.2(c)--Resolution for the Completion of the Kennett Court Senior Apartments Project
Steve Bade, Assistant City
Manager
Packet Pg. 22
Report to Redding City Council January 11, 2024
Re: 4.2(c)--Resolution - Completion of Kennett Court Senior Apartments Page 2 Background/Analysis
As a result of the wildfires that affected California in 2018, a Presidentially-Declared Disaster was assigned to five counties, including Shasta County for the Carr Fire. In recognition of the unmet recovery needs, the U.S. Department of Housing and Urban Development allocated Community Development Block Grant – Disaster Recovery (CDBG-DR) Program funds to the State of California Housing and Community Development Department (HCD). HCD is the agency responsible for administering the CDBG-DR funds and approving any resulting multifamily projects.

HCD undertook an extensive needs assessment to determine the specific priorities of the affected counties with significant community outreach and analysis that resulted in four CDBG-DR Program categories: housing, infrastructure, economic revitalization, and planning. The majority of funds are allocated to the unmet rental housing needs in affected counties. To meet the unmet rental housing needs, HCD created the CDBG-DR MHP. The City was allocated $16,660,145 in CDBG-DR MHP funds to support the development of income-eligible multifamily projects.

Kennett Court Senior Apartments consists of 40 income-eligible apartment units for seniors, with one manager’s unit, and is located at 1185 Lake Boulevard. On March 15, 2022, the Council approved a $1,000,000 loan of CDBG-DR MHP funds to assist Kennett Court Senior Apartments, LP, to develop and construct the project. The project was completed on November 13, 2023, and is soon to be fully occupied. CDBG-DR MHP regulations require that once the funded project is completed, the local jurisdiction must adopt a resolution that acknowledges it is satisfactorily completed.

Environmental Review
Adopting a completion resolution is not considered a project under the California Environmental Quality Act (CEQA). The actual construction of the project was previously reviewed for CEQA compliance.

Under the National Environmental Policy Act (NEPA), administrative and management activities such as adopting a resolution are considered exempt activities and no further action is required. The actual construction project was reviewed for NEPA requirements before the project started.

Council Priority/City Manager Goals
• This agenda item is a routine operational item.

Attachments
^Resolution
Packet Pg. 23
RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

AUTHORIZING THE ACCEPTANCE OF COMPLETION OF THE

KENNETT COURT SENIOR APARTMENTS PROJECT FUNDED BY

COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER

RECOVERY MULTI-FAMILY HOUSING PROGRAM FUNDS
WHEREAS, the City Council previously approved the use of Community Development Block Grant Disaster Recovery Multi-Family Housing Program funds in the Kennett Court Senior Apartments development; and
WHEREAS, the Kennett Court Senior Apartments development has been satisfactorily completed according to City of Redding and California State Housing and Community Development guidelines;
NOW, THEREFORE, IT IS RESOLVED by the City Council that the Kennett Court Senior Apartments development has been satisfactorily completed.

I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 16th day of January, 2024, and was duly adopted at said meeting by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
___________________________________
TENESSA AUDETTE, Mayor
ATTEST: FORM APPROVED:
___________________________________ ___________________________________ SHARLENE TIPTON, City Clerk NATALIA K. EBERSOLE,
Interim City Attorney
Packet Pg. 24
Attachment: ^Resolution [Revision 1] (4.2(c)--Resolution - Completion of Kennett Court Senior Apartments)

STATE OF CALIFORNIA
City of Redding
I, Sharlene Tipton, City Clerk of the City of Redding, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted at a duly noticed and convened meeting of said City Council on January 16, 2024, and that such resolution has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.
__________________________________________
Sharlene Tipton, City Clerk of the City of Redding,
State of California

By: ______________________________________
Name and Title
Packet Pg. 25
Attachment: ^Resolution [Revision 1] (4.2(c)--Resolution - Completion of Kennett Court Senior Apartments)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following modifications relative to the previously awarded Bid Schedule No. 5231, Furnish and Deliver 15kV Cable to The Okonite Cable Company (Okonite):
(1) Accept proposed changes in base contract pricing for contract year 3 and contract year 4; (2) Amend the award amount previously issued to Okonite from a total of $303,799 to a notto-exceed amount of $1.5 million per contract year based on line item evaluated pricing; (3) Authorize the City Manager, or designee, to approve price adjustments due to metals escalation and de-escalation relative to the established base price; and (4) Approve Purchase Order 115278 in the amount of $644,856.50 for additional cable.

Fiscal Impact
The purchase of 15kV Cable was included in Redding Electric Utility’s (REU) General System Improvements Fiscal Year 2023-25 Biennial Budget and the Overhead/Underground Infrastructure Replacement Project for the Electric Utility Line Construction Services. In the five-year plan presented to the City Council, REU anticipated these projects may be bondfunded. If capital expenses related to these efforts are projected to exceed the approved budget, staff will return with additional recommendations related to budgetary adjustments and financing options.

Alternative Action
The City Council (Council) could choose not to accept the pricing change proposed by Okonite, and provide alternative direction to staff.

MEETING DATE: January 16, 2024
ITEM NO. 4.5(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(a)--Authorize Modifications to Bid Schedule No. 5231 - Furnish and Deliver 15kV Cable
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 26
Report to Redding City Council January 11, 2024
Re: 4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable Page 2 Background/Analysis
On October 19, 2021, the Council approved the award of Bid Schedule No. 5231 to Okonite in the evaluated amount of $303,798.60, not including tax.

On April 6, 2023, Purchase Order 115278 was issued with increased quantities over projected in Bid No. 5231, anticipating long manufacturer lead times. This Purchase Order utilized the original contract line item pricing but was in the amount of $644,856.50, over the Councilapproved dollar amount. REU is requesting that the Council increase the annual contract authorization limit to $1.5 million to account for aging infrastructure replacement and extended lead times and approve Purchase Order 115278 so that REU can ensure an adequate supply of 15kV cable to power new customers and replace failed cables during emergency replacement.

On November 13, 2023, Okonite provided the latest price changes to REU, requesting annual price increases effective November 1, 2023, due to general inflation. Price increases were noted in Okonite’s original bid in 2021, and this is mutually agreeable with REU. This price adjustment would bring the original evaluated total of $303,798 for years 1 and 2 to the increased evaluated amount of $369,059 in contract year 3 and $401,680 in contract year 4.

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

Council Priority/City Manager Goals
This agenda item is a routine operational item.

Attachments
PO115278
Staff Report - 4.5(c)--Award of Bid Schedule No. 5231, 15kV Cable Okonite Price Quote 2024
Okonite Price Quote 2025
Packet Pg. 27

RECVD QTY

COMM- ODITY

DESCRIPTION OF ARTICLES UNIT

PRICE UNIT
TRADE DISC. AMOUNT COST CENTER NO. AMOUNT

ESTIMATE
PURCHASE ORDER NO.

THE ABOVE NUMBER MUST BE SHOWN ON DELIVERY
PAPERS, INVOICES, AND ALL CORRESPONDENCE.
*** Terms & Conditions Attached ***
115278
INVOICES MUST BE FORWARDED TO:

FINANCE DIVISION
P.O. BOX 496071
REDDING, CA 96049-6071
(530)225-4079 FAX (530)225-4324
TERMS: NET 30 PAGE
1 OF 2
DATE
4/6/2023 TO: DELIVER TO:

OKONITE CO
2440 CAMINO RAMON STE 315
SAN RAMON CA 94583-4326

CITY OF REDDING
ATTN: COX S
ELECTRIC UTILITY BLDG 2
20055 VIKING WAY
REDDING CA 96003-8229
VENDOR NUMBER 56610 DIVISION 853 ELECTRIC-DISTRIBUTION
VENDOR EMAIL: [email protected]

QUOTE BID
5231
Do not fill this order if unable to fill exactly as written, including price, without prior approval by purchasing officer.

No. 115278
15KV PRIMARY UNDERGROUND CONDUCTOR
.CITY PART # E 11020
150,000.000 2/0-19 STRAND AL CONDUCTOR EPR WITH 2.180 FT 327,000.00

ENCAPSULATED JACKET EVENLY DISTRIBUTED
ON 30 NON-RETURNABLE HEAVY DUTY CLASS 2
WOODEN REELS.

CITY PART # E 11082
24,000.000 750 KCMIL - 61 STRAND 5.813 FT 139,512.00
EVENLY DISTRIBUTED ON 12 NON-RETURNABLE
HEAVY DUTY CLASS 2 WOOD REELS.
(ITEM #2 ON BID)
CITY PART # E 11095
16,800.000 1000 KCMIL - 61 STRAND 8.021 FT 134,752.80
EVENLY DISTRIBUTED ON 12 NON-RETURNABLE
HEAVY DUTY CLASS 2 WOOD REELS.
(ITEM #3 ON BID)
P/O Subtotal 601,264.80
Total Tax 43,591.70
P/O Total 644,856.50
CITY OF REDDING CONTACT: 6580-31 644,856.50
SCOTT COX (530) 224-4329
.24 HOUR ADVANCE NOTICE REQUIRED PRIOR TO
DELIVERY AT NUMBER SHOWN ABOVE.

Packet Pg. 28
Attachment: PO115278 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable)

RECVD QTY

COMM- ODITY

DESCRIPTION OF ARTICLES UNIT

PRICE UNIT
TRADE DISC. AMOUNT COST CENTER NO. AMOUNT

ESTIMATE
PURCHASE ORDER NO.

THE ABOVE NUMBER MUST BE SHOWN ON DELIVERY
PAPERS, INVOICES, AND ALL CORRESPONDENCE.
*** Terms & Conditions Attached ***
115278
INVOICES MUST BE FORWARDED TO:

FINANCE DIVISION
P.O. BOX 496071
REDDING, CA 96049-6071
(530)225-4079 FAX (530)225-4324
TERMS: NET 30 PAGE
2 OF 2
DATE
4/6/2023 TO: DELIVER TO:

OKONITE CO
2440 CAMINO RAMON STE 315
SAN RAMON CA 94583-4326

CITY OF REDDING
ATTN: COX S
ELECTRIC UTILITY BLDG 2
20055 VIKING WAY
REDDING CA 96003-8229
VENDOR NUMBER 56610 DIVISION 853 ELECTRIC-DISTRIBUTION
VENDOR EMAIL: [email protected]

QUOTE BID
5231
Do not fill this order if unable to fill exactly as written, including price, without prior approval by purchasing officer.

COR Internal Use Only
I hereby certify that I have received the quantities and qualities as noted in good condition, except as noted hereon.

Authorized Signature Date Goods Received

PURCHASING OFFICER
This order not valid unless signed
by the purchasing officer
No. 115278
.PER SPECIFICATIONS, TERMS, CONDITIONS,
AND VENDOR SUBMISSION OF BID 5231
INCORPORATED HEREIN BY THIS REFERENCE.
.PRICING SUBJECT TO LATEST PLATTS METALS
WEEK INDEX PER SECTION 9 OF THE SPEC'S.
.**PLEASE SEND BILLING INVOICE, WITH THIS

PURCHASE ORDER NUMBER, TO THE ADDRESS
INDICATED AT THE UPPER LEFT OF THE P.O.

OR EMAIL TO [email protected]
Packet Pg. 29
Attachment: PO115278 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable) Revised 12/10/2020
City of Redding, CA: Purchase Order Terms and Conditions

1. GENERAL: If the goods and/or services ordered herein are as a result of either a formal Request for Quotation, Request for Proposal or Notice Inviting Bids then the Terms and Conditions set forth in this document are considered to be in addition to the requirements and specifications stated in the RFQ, RFP or NIB. To the extent that one set of Terms and Conditions may contradict the other, the requirements of the RFQ, RFP or NIB shall supercede the Terms and Conditions shown below. It is understood that all materials and/or services provided by Supplier/Contractor/Consultant (Supplier) shall conform to the applicable requirements of City Ordinances, and all applicable State and Federal Laws

2. DELIVERY: Supplier shall deliver the items and/or services stated herein free from any and all claims, debts, or demands whatsoever.

Deliveries shall be made as set forth in this order and any additional Specifications incorporated. Delivery is defined as complete delivery in good order, at place designated in the Specifications/Purchase Order.

3. MISCELLANEOUS CHARGES: No charges for transportation, containers, packing, etc. will be allowed unless so specified in this order.

4. FREIGHT CHARGES: All shipments are F.O.B. - Destination, Supplier pays charges, unless specified otherwise in the body of this order. If City has agreed to pay freight it shall be prepaid and added to the invoice. In that case a copy of the paid express or freight bill must be attached to the invoice.

5. INDEMNITY: Supplier hereby agrees to protect, defend, indemnify and hold harmless, City, its officers, elected and appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgements, demands, penalties, fines, defense costs, and consequential damage or liability of any kind or nature, however caused, arising directly or indirectly out of the obligations or operations herein undertaken by Supplier, caused in whole or in part by any act or omission of the Supplier, any subcontractors, any directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to concurrent active or passive negligence, except where caused by the active negligence, sole negligence or willful misconduct of the City. Supplier will conduct all defense at its sole cost and expense and the City shall have the right to approve or disapprove Supplier=s legal counsel. City shall be reimbursed for all costs and attorneys= fees incurred by the City in enforcing this obligation. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of the indemnification to be provided by Contractor.

6. PATENT RIGHTS: Any equipment or service to be furnished hereunder shall not, either in construction, manufacture, use, sale or other particular, infringe any letters patent, copyright or registered trademark heretofore granted, and the Supplier shall defend and pay the entire cost of defending any claim or suit whenever or wherever made or brought against the City based upon an infringement or alleged infringement of such letters patent, copyright or registered trademark and shall indemnify and save harmless the City from and against any and all liability, damage, loss or injury adjudged or sustained in any such claim or suit.

7. NONDISCRIMINATION CLAUSE: Except as provided in
Section 12940 et seq. of the Government Code, Supplier shall not discriminate against any person because of his/her race, religious creed, color, national origin, ancestry, physical disability, mental disability, marital status, mental condition, or gender, nor refuse to hire or employ a person or to refuse to select the person for a training program leading to employment or to bar or discharge the person from employment, or from a training program leading to employment, or to discriminate against the person in compensation or in terms, conditions or privileges of employment. The Supplier shall insert in all subcontracts for any work covered by this P. O. this nondiscrimination provision.

8. EXCISE TAX: If federal excise tax is applicable to the transaction, it must be clearly stated so and excluded from the price of the article.

The City of Redding, as a government agency, is exempt from the payment of said tax and will issue an exemption certificate.

9. SALES AND USE TAXES: Sales and/or use tax must be shown on the invoice as a separate item.

10. DEFAULT BY SUPPLIER: In case of default by Supplier, the City reserves the right to procure the goods or services from other sources and to hold the Supplier responsible for any excess costs occasioned to the City thereby. Supplier must notify the City immediately upon knowing that non-performance or delay will apply to this order whether as a result of Force Majeure or not. Upon agreement by the City that Force Majeure is applicable, Supplier shall not be held accountable for the delays directly related to the Force Majeure condition. When delay is ascertained Supplier is to submit in writing a Recovery Plan for this order. If the Recovery Plan is not acceptable to the City or not received within 10 calendar days of the necessary notification of delay or Force Majeure default, the City may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point. City shall not be liable for lost profits, implied or express damages or consequential damages.

11. INSPECTION AND ACCEPTANCE: Inspection and acceptance shall be at destination, unless otherwise provided. Until delivery and acceptance, and after any rejections, risk of loss shall be on the Supplier unless loss results from the negligence of the City of Redding.

Notwithstanding the requirement for any inspection and test contained in specifications applicable to this contract, except where specialized inspection or tests are specified solely for the City, the Supplier shall perform or have performed the inspection and tests required to substantiate that the supplies and services provided under the contract conform to the drawings, specifications, and contract requirements incorporated herein, including if applicable the technical specifications for the manufacturers= part numbers or products specified herein.

12. PAYMENTS: Payment terms are Net 30 unless otherwise agreed to by both parties. All Cash Discounts shall be taken and computed from the date of delivery or completion and acceptance of the material, or from the date of receipt of invoice, whichever is latest. Each payment obligation of the City is conditioned upon the availability of state or local government funds which are apportioned or allocated for the payment of such an obligation. If the funds are not allocated and available for the continuance of the function performed by the Supplier, the product or service directly or indirectly involved in the performance of that function may be terminated by the City at the end of the period for which funds are available. No payment will be made until the order has been delivered and accepted.

13. INVOICES: Invoices shall contain the following information:

Supplier=s Federal Tax I.D. number, purchase order number, invoice number and date, item number, description of supplies/services, quantities and units of measure, unit prices and extended totals. Bill of Lading number and weight of shipment will be shown for shipments on Government Bills of Lading.

14. WARRANTY: The Supplier agrees that the supplies/services furnished under this contract shall be covered by the most favorable commercial warranties the Supplier gives to any customer for such supplies/services, and that the rights and remedies provided herein are in addition to, and do not limit any rights afforded to the City by, any other clause of a contract awarded hereunder.

15. ASSIGNMENT OF CLAIMS: Claims for monies due or to
become due under this contract shall be assigned only pursuant to prior written consent of the City Purchasing Officer or designated representative.

16. CONTRACT TERMINATION: The City may, by giving ten (10) calendar days written notice to the Supplier, terminate this contract prior to the designated completion date for due cause. Due cause for termination shall be, but not limited to, the best interests of the City, failure of the product to meet specifications, and/or for reasons of unsatisfactory service. The City may, upon giving thirty (30) calendar days written notice to Supplier, terminate the contract without cause.

17. GOVERNING LAW: Any action filed regarding the award of the Quote/ Bid/Proposal or Purchase Order must be filed with the Superior Court of the County of Shasta, California. Any subsequent agreement shall be deemed to have been entered into in Redding, California; all questions of the validity, interpretation or performance of any of its terms or of any rights or obligations of the parties to the agreement shall be governed by California law; and any action brought by either party to enforce any of the terms of the agreement shall be filed with the Superior Court of the County of Shasta, California.

18. ATTORNEYS= FEES AND COSTS: In any action by a party to enforce its rights hereunder, the nonprevailing party shall pay the prevailing party=s legal costs and expenses (including reasonable attorneys= fees).

19. CHANGE ORDERS: The City reserves the right at any time to make written changes within the general scope of the contract. If any such changes cause an increase or decrease in the cost of, or in the time required for the performance of the contract, an equitable adjustment shall be made in the contract price, delivery schedule, or both. Any claim by Supplier for adjustment in this cause must be approved by the City=s authorized representative(s) in writing (formal change order, amendment, or revision) before Supplier proceeds with such change.

Packet Pg. 30
Attachment: PO115278 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following relative to Bid Schedule No. 5231, 15kV Cable:
(1) Award to The Okonite Company (Okonite) in the amount of $303,799 not including tax; and
(2) Authorize the Purchasing Officer to extend the bid award annually with The Okonite Company through October 31, 2026, if mutually agreeable, with all terms and conditions remaining the same and prices adjusted up or down according to Platt’s Metals Week.

Fiscal Impact
Adequate funding is available in Redding Electric Utility’s (REU) current biennial General System Improvements fund for the purchase of 15kV cable. These costs include the annual recurring expenditures for installation of facilities required to maintain reliable electric service.

Alternative Action
The City Council (Council) could choose to not award the bid to The Okonite Company (Okonite) and provide alternative direction to staff.

Background/Analysis
This is a routine bid for the purchase of 15kV cable through October 31, 2023, on an as-needed basis subject to the availability of budgeted funds. The 15kV underground cable is required to support residential and commercial development and provide emergency replacement of the existing 15 kV cable that is presently in service.

On Wednesday, September 8, 2021, one bid was opened for the 15kV cable. In the evaluation process, staff analyzed the bids based on bid price and compliance with the bid specifications.

The apparent evaluated low bid was submitted by Okonite, furnishing 15kV Okonite cable, and MEETING DATE: October 19, 2021
ITEM NO. 4.5(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(c)--Award of Bid Schedule No. 5231, 15kV Cable Daniel Beans, Director of
Electric Utility
Packet Pg. 31
Attachment: Staff Report - 4.5(c)--Award of Bid Schedule No. 5231, 15kV Cable (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Report to Redding City Council October 9, 2021
Re: 4.5(c)­­Award of Bid Schedule No. 5231, 15kV Cable Page 2 is in compliance with the specifications, general conditions, and proposal requirements. Okonite has previously supplied 15kV cable to REU.

Staff recommends Council approve the purchase of 15kV cable from Okonite, as needed through October 31, 2022, with possible yearly extensions to October 31, 2026.

Council Priority/City Manager Goals
This agenda item is a routine operational item.

Attachments
Bid Tabulation
Packet Pg. 32
Attachment: Staff Report - 4.5(c)--Award of Bid Schedule No. 5231, 15kV Cable (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and

6/30/2023
2440 CAMINO RAMON
SUITE 315
SAN RAMON CA 94583
TEL:925-830-0801 FAX:925-830-0954
==============================================================================

QUOTATION PREPARED FOR:

CITY OF REDDING, FINANCE DIVISION

MARI SZYNAL

CUSTOMER
OKONITE REFERENCE:64-21150-005 REFERENCE: REDDING BID 5231 (YEAR 3) ============================================================================== NET

WEIGHT SHIP PRICE
ITEM QUANTITY DESCRIPTION 1000 FT WEIGHT 1000 FT
==============================================================================

PRICES QUOTED ARE SUBJECT TO METALS ESCALATION, DE-ESCALATION IN ACCORDANCE WITH ITEM EXPIRATION DATE.

PRICING FOR YEARS 3, 4, AND 5 WILL BE BASIS
MUTUALLY AGREEABLE ANNUAL ADJUSTMENTS.

SPECIFICATIONS FOR 15KV CABLE:

SECTION 7.0 LIQUIDATED DAMAGES
WE TAKE COMPLETE EXCEPTION TO THIS ARTICLE.

WE OFFER OUR STANDARD SHORT-FORM WARRANTY

LANGUAGE, REMEDY, AND LIMITATION OF LIABILITY FOR
A PERIOD OF THIRTY (30) YEARS

PRICES ARE VALID FOR SHIPMENTS SCHEDULED FOR
DELIVERY FROM 11/1/23 THROUGH 10/31/24, SUBJECT TO
METALS ESCALATION / DE-ESCALATION.

CLARIFICATION

WE OFFER URO-J CABLE MANUFACTURED & TESTED IN
ACCORDANCE WITH CURRENT EDITIONS OF ICEA S-94-649
AND AEIC CS8 (AEIC CS8-20).

EXCEPTION

WE OFFER ALUMINUM CONDUCTORS WITH A CONTINUOUSLY

FILLED WATER-BLOCKING AGENT (YARN) IN LIEU OF
FILLED WITH A COMPOUND MATERIAL.

WE TAKE EXCEPTION TO THE CLEAN ROOM REQUIREMENTS
OF PARAGRAPH 6.00. OKOGUARD IS MIXED AND EXTRUDED

IN A CLOSED LOOP SYSTEM WHERE ONCE ALL INGREDIENTS

ENTER THE BANBURY MIXER, THE INSULATION DOES NOT
Packet Pg. 33
Attachment: Okonite Price Quote 2024 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable)

SEE THE LIGHT OF DAY UNTIL THE CABLE IS TERMINATED
OR SPLICED.

001 45,000' 1/C 2/0 19X ALUMINUM FILLED 698 36441 $2656 STRAND -SS- 220 OKOGUARD EPR
- 030 SC EPR - 7 X #14 COPPER EXPIRES
CONC WIRES (THIRD NEUTRAL) - 10/31/24
050 OKOLENE PE W/3 RED STRIPES
- SEQ PRINT - 15KV
SERIAL NUMBER = 77100
***45,000' MIN. RELEASE***

METAL WEIGHT LBS PER 1000 FT:

COPPER 90 ALUMINUM 125

SPECIAL MANUFACTURED ITEM
APPROX O.D. INCHES 1.197
OKONITE PRODUCT CODE: 162-23-3075
CATALOG SECTION 2 SHEET 036
REELS:
9 @ 5000 72X36X36 NR (REEL WIDTH 44.0)
SPECS:

TECHNICAL SPEC FOR 15KV CABLE
002 18,000' 1/C 750 61X ALUMINUM FILLED 1870 38691 $7032 STRAND -SS- 220 OKOGUARD EPR -
040 SC EPR - 19 X #14 COPPER EXPIRES
CONC WIRES - 045 MIN PT 10/31/24
OKOLENE PE W/3 RED STRIPES -
SEQ PRINT - 15KV
SERIAL NUMBER = 77101
18,000 FOOT MINIMUM RELEASE

METAL WEIGHT LBS PER 1000 FT:

COPPER 246 ALUMINUM 704

SPECIAL MANUFACTURED ITEM
APPROX O.D. INCHES 1.828
OKONITE PRODUCT CODE: 162-23-9580
REELS:
9 @ 2000 72X36X36 NR (REEL WIDTH 44.0)
SPECS:

TECHNICAL SPEC FOR 15KV CABLE
Packet Pg. 34
Attachment: Okonite Price Quote 2024 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable)

003 12,600' 1/C 1000 61X ALUMINUM FILLED 2283 33797 $9759 STRAND -SS- 220 OKOGUARD EPR -
055 SC EPR - 19 X #14 COPPER EXPIRES
CONC WIRES (EIGHTH NEUTRAL) - 10/31/24
045 MIN PT OKOLENE PE W/3 RED
STRIPES - SEQ PRINT - 15KV
SERIAL NUMBER = 77102

METAL WEIGHT LBS PER 1000 FT:

COPPER 250 ALUMINUM 939

SPECIAL MANUFACTURED ITEM
APPROX O.D. INCHES 2.008
OKONITE PRODUCT CODE: 162-23-9591
REELS:
9 @ 1400 72X36X36 NR (REEL WIDTH 44.0)
SPECS:

TECHNICAL SPEC FOR 15KV CABLE
============================================================================== METAL BASE:(SEE BASIS IN ESCALATION SECTION)
COPPER 4.330000 ALUMINUM 1.520000

FOR AUTHORIZED STOCK ITEMS ONLY, REEL AND CUT CHARGES
WILL APPLY FOR LENGTHS 500 FEET OR LESS.

MINIMUM ORDER $500
F.O.B. DESTINATION
TERMS: NET 30 DAYS
LENGTH TOLERANCE: MINIMUM -03% MAXIMUM +03%

PRICES QUOTED HEREIN DO NOT PERMIT EXACT LENGTHS
OR REDUCED TOLERANCES, UNLESS SPECIFICALLY NOTED.
*************************************
* THE FOLLOWING HYPERLINKED FILE * THE OKONITE COMPANY
* OKONITE-TERMS-AND-CONDITIONS.PDF, *
* FORM PART OF THIS QUOTATION. * BY RICK CHEROVSKY
*************************************

============================================================================== ON SHIPMENTS 5,000 LBS. AND OVER, ORDINARY FREIGHT ALLOWED TO

DESTINATION (NEAREST FREIGHT STATION OR COMMON CARRIER DELIVERY Packet Pg. 35
Attachment: Okonite Price Quote 2024 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable)

POINT) TO AND WITHIN ALL STATES EXCEPT ALASKA AND HAWAII.

SHIPMENTS TO THESE TWO STATES ARE FREIGHT ALLOWED TO PORT OF EMBARKATION. ON SHIPMENTS OF LESS THAN 5,000 LBS. - NO FREIGHT IS ALLOWED.

ESCALATION:

PRICES QUOTED HEREIN ARE THOSE IN EFFECT TODAY, AND ARE PREDICATED

ON IMMEDIATE RELEASE FOR MANUFACTURE AND SHIPMENT AS SOON AS COMP- LETED. THESE PRICES SHALL BE ADJUSTED FOR CHANGES IN THE PRICE OF

METALS (COPPER, STEEL, LEAD, ALUMINUM), WHICH MAY OCCUR BETWEEN THE DATE OF QUOTATION AND THE DATES SHIPMENTS ARE MADE.

ALL SUCH ADJUSTMENTS WILL BE MADE AGAINST THE NET PRICE AFTER ALL DISCOUNTS AND WILL BE CALCULATED USING METAL WEIGHTS QUOTED HEREIN.

ORDERS RECEIVED WITHOUT CUTTING LENGTHS OR FOR SUBSEQUENT RELEASE,

SHALL BE BILLED AT PRICE IN EFFECT ON THE DAY RELEASE IS RECEIVED

AND SHALL BE ADJUSTED THEREAFTER FOR CHANGES IN THE PRICE OF METALS (COPPER, STEEL, LEAD, ALUMINUM), WHICH MAY OCCUR BETWEEN THE DATE OF RELEASE AND THE DATES SHIPMENTS ARE MADE.

BASIS:

COPPER: COMEX, CURRENT MONTH SETTLE PRICE,
PREVIOUS DAY CLOSING.

ALUMINUM:

LEAD: LONDON METALS EXCHANGE (LME) SETTLE PRICE.

STEEL: AMERICAN METALS MARKET - COLD ROLLED SHEET CLASS 1.

RETURNABLE REEL CHARGES MAY APPLY AS APPLICABLE.
(END OF QUOTATION)
Packet Pg. 36
Attachment: Okonite Price Quote 2024 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable)

11/13/2023
2440 CAMINO RAMON
SUITE 315
SAN RAMON CA 94583
TEL:925-830-0801 FAX:925-830-0954
==============================================================================

QUOTATION PREPARED FOR:

CITY OF REDDING, FINANCE DIVISION

MARI SZYNAL

CUSTOMER
OKONITE REFERENCE:64-30796-005 REFERENCE: REDDING BID 5231 (YEAR 4) ============================================================================== NET

WEIGHT SHIP PRICE/
ITEM QUANTITY DESCRIPTION 1000 FT WEIGHT 1000 FT
==============================================================================

PRICES QUOTED ARE SUBJECT TO METALS ESCALATION, DE-ESCALATION IN ACCORDANCE WITH ITEM EXPIRATION DATE.

SPECIFICATIONS FOR 15KV CABLE:

SECTION 7.0 LIQUIDATED DAMAGES
WE TAKE COMPLETE EXCEPTION TO THIS ARTICLE.

WE OFFER OUR STANDARD SHORT-FORM WARRANTY

LANGUAGE, REMEDY, AND LIMITATION OF LIABILITY FOR
A PERIOD OF THIRTY (30) YEARS

PRICES ARE VALID FOR SHIPMENTS SCHEDULED FOR
DELIVERY FROM 11/1/24 THROUGH 10/31/25, SUBJECT TO
METALS ESCALATION / DE-ESCALATION.

CLARIFICATION

WE OFFER URO-J CABLE MANUFACTURED & TESTED IN
ACCORDANCE WITH CURRENT EDITIONS OF ICEA S-94-649
AND AEIC CS8 (AEIC CS8-20).

EXCEPTION

WE OFFER ALUMINUM CONDUCTORS WITH A CONTINUOUSLY

FILLED WATER-BLOCKING AGENT (YARN) IN LIEU OF
FILLED WITH A COMPOUND MATERIAL.

WE TAKE EXCEPTION TO THE CLEAN ROOM REQUIREMENTS
OF PARAGRAPH 6.00. OKOGUARD IS MIXED AND EXTRUDED

IN A CLOSED LOOP SYSTEM WHERE ONCE ALL INGREDIENTS

ENTER THE BANBURY MIXER, THE INSULATION DOES NOT

SEE THE LIGHT OF DAY UNTIL THE CABLE IS TERMINATED
OR SPLICED.

Packet Pg. 37
Attachment: Okonite Price Quote 2025 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable)

001 45,000' 1/C 2/0 19X ALUMINUM FILLED 698 36441 $2894 STRAND -SS- 220 OKOGUARD EPR
- 030 SC EPR - 7 X #14 COPPER EXPIRES
CONC WIRES (THIRD NEUTRAL) - 10/31/25
050 OKOLENE PE W/3 RED STRIPES
- SEQ PRINT - 15KV
SERIAL NUMBER = 91936
45,000' MIN. RELEASE

METAL WEIGHT LBS PER 1000 FT:

COPPER 90 ALUMINUM 125

SPECIAL MANUFACTURED ITEM
APPROX O.D. INCHES 1.197
OKONITE PRODUCT CODE: 162-23-3075
CATALOG SECTION 2 SHEET 036
REELS:
9 @ 5000 72X36X36 NR (REEL WIDTH 44.0)
SPECS:

TECHNICAL SPEC FOR 15KV CABLE
002 18,000' 1/C 750 61X ALUMINUM FILLED 1870 38691 $7641 STRAND -SS- 220 OKOGUARD EPR -
040 SC EPR - 19 X #14 COPPER EXPIRES
CONC WIRES - 045 MIN PT 10/31/25
OKOLENE PE W/3 RED STRIPES -
SEQ PRINT - 15KV
SERIAL NUMBER = 91937
18,000' MIN. RELEASE

METAL WEIGHT LBS PER 1000 FT:

COPPER 246 ALUMINUM 704

SPECIAL MANUFACTURED ITEM
APPROX O.D. INCHES 1.828
OKONITE PRODUCT CODE: 162-23-9580
REELS:
9 @ 2000 72X36X36 NR (REEL WIDTH 44.0)
SPECS:

TECHNICAL SPEC FOR 15KV CABLE
003 12,600' 1/C 1000 61X ALUMINUM FILLED 2282 33784 $10628 STRAND -SS- 220 OKOGUARD EPR -
055 SC EPR - 19 X #14 COPPER EXPIRES
Packet Pg. 38
Attachment: Okonite Price Quote 2025 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable)

CONC WIRES (EIGHTH NEUTRAL) - 10/31/25
045 MIN PT OKOLENE PE W/3 RED
STRIPES - SEQ PRINT - 15KV
SERIAL NUMBER = 91945
12,600' MIN. RELEASE

METAL WEIGHT LBS PER 1000 FT:

COPPER 250 ALUMINUM 939

SPECIAL MANUFACTURED ITEM
APPROX O.D. INCHES 2.008
OKONITE PRODUCT CODE: 162-23-9591
REELS:
9 @ 1400 72X36X36 NR (REEL WIDTH 44.0)
SPECS:

TECHNICAL SPEC FOR 15KV CABLE
============================================================================== METAL BASE:(SEE BASIS IN ESCALATION SECTION)
COPPER 4.330000 ALUMINUM 1.520000

FOR AUTHORIZED STOCK ITEMS ONLY, REEL AND CUT CHARGES
WILL APPLY FOR LENGTHS 500 FEET OR LESS.

MINIMUM ORDER $500
F.O.B. DESTINATION
TERMS: NET 30 DAYS
LENGTH TOLERANCE: MINIMUM -03% MAXIMUM +03%

PRICES QUOTED HEREIN DO NOT PERMIT EXACT LENGTHS
OR REDUCED TOLERANCES, UNLESS SPECIFICALLY NOTED.
*************************************
* THE FOLLOWING HYPERLINKED FILE * THE OKONITE COMPANY
* OKONITE-TERMS-AND-CONDITIONS.PDF, *
* FORM PART OF THIS QUOTATION. * BY RICK CHEROVSKY
*************************************

============================================================================== ON SHIPMENTS 5,000 LBS. AND OVER, ORDINARY FREIGHT ALLOWED TO

DESTINATION (NEAREST FREIGHT STATION OR COMMON CARRIER DELIVERY POINT) TO AND WITHIN ALL STATES EXCEPT ALASKA AND HAWAII.

SHIPMENTS TO THESE TWO STATES ARE FREIGHT ALLOWED TO PORT OF Packet Pg. 39
Attachment: Okonite Price Quote 2025 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable)

EMBARKATION. ON SHIPMENTS OF LESS THAN 5,000 LBS. - NO FREIGHT IS ALLOWED.

ESCALATION:

PRICES QUOTED HEREIN ARE THOSE IN EFFECT TODAY, AND ARE PREDICATED

ON IMMEDIATE RELEASE FOR MANUFACTURE AND SHIPMENT AS SOON AS COMP- LETED. THESE PRICES SHALL BE ADJUSTED FOR CHANGES IN THE PRICE OF

METALS (COPPER, STEEL, LEAD, ALUMINUM), WHICH MAY OCCUR BETWEEN THE DATE OF QUOTATION AND THE DATES SHIPMENTS ARE MADE.

ALL SUCH ADJUSTMENTS WILL BE MADE AGAINST THE NET PRICE AFTER ALL DISCOUNTS AND WILL BE CALCULATED USING METAL WEIGHTS QUOTED HEREIN.

ORDERS RECEIVED WITHOUT CUTTING LENGTHS OR FOR SUBSEQUENT RELEASE,

SHALL BE BILLED AT PRICE IN EFFECT ON THE DAY RELEASE IS RECEIVED

AND SHALL BE ADJUSTED THEREAFTER FOR CHANGES IN THE PRICE OF METALS (COPPER, STEEL, LEAD, ALUMINUM), WHICH MAY OCCUR BETWEEN THE DATE OF RELEASE AND THE DATES SHIPMENTS ARE MADE.

BASIS:

COPPER: COMEX, CURRENT MONTH SETTLE PRICE,
PREVIOUS DAY CLOSING.

ALUMINUM:

LEAD: LONDON METALS EXCHANGE (LME) SETTLE PRICE.

STEEL: AMERICAN METALS MARKET - COLD ROLLED SHEET CLASS 1.

RETURNABLE REEL CHARGES MAY APPLY AS APPLICABLE.
(END OF QUOTATION)
Packet Pg. 40
Attachment: Okonite Price Quote 2025 (4.5(a)--Modifications to Bid Sched No. 5231 - Furnish and Deliver 15kV Cable)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Award Bid Schedule No. 5427, Padmount Distribution Transformers, to Hyundai Corporation USA (Hyundai) in the amount of $3,886,718.55, including tax, for the Redding Electric Utility.

Fiscal Impact
The purchase of transformers was included in Redding Electric Utility’s (REU) General System Improvements Fiscal Year 2023-25 Biennial Budget, and the Overhead/Underground Infrastructure Replacement Project for the Electric Utility Line Construction Services. In the five-year plan presented to City Council, REU anticipated these projects may be bond-funded. If capital expenses related to these efforts are projected to exceed the approved budget, staff will return with additional recommendations related to budgetary adjustments and financing options.

Alternative Action
The City Council (Council) could choose to not award to Hyundai, and provide alternative direction to staff.

Background/Analysis
REU staff has been managing procurement options of distribution transformers during an ongoing nationwide supply chain shortage. Staff efforts to secure transformers through the conventional bidding process have been met with two- to three-year lead times, significantly delaying our ability to address the current shortage. Additionally, the City of Redding (City) is experiencing increased development and electric vehicle charger installation requests, further straining the current inventory of distribution transformers. Part of the current strategy for diversifying the supply chain of transformers is to open up bids to non-domestic manufacturers.

Non-domestic manufacturers have been used more and more in supplementing transformer inventories among various small and large utilities as they have reduced lead times compared to domestic manufacturers.

MEETING DATE: January 16, 2024
ITEM NO. 4.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(b)--Award of Bid Schedule 5427 - Padmount Distribution Transformers Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 41
Report to Redding City Council January 11, 2024
Re: 4.5(b)--Award of Bid Schedule 5427 - Padmount Distribution Transformers Page 2 On November 10, 2023, the City publicly posted Bid Schedule 5427 for Furnishing Padmount Distribution Transformers. This is a one-time bid for the purchase of single-phase and threephase, pad-type transformers. These single-phase and three-phase, pad-type distribution transformers are required to support residential and commercial development and provide emergency replacement of the existing three-phase, pad-type distribution transformers that are presently in service.

On Friday, December 1, 2023, five bids were opened for the subject bid. In the evaluation process, staff analyzed the bids based on bid price, compliance with technical specifications, a maximum lead time of 40 weeks, and reference checks. Of the five bids submitted, only Hyundai passed all the reference checks, was within the 40-week lead time, and also met the specifications required from REU.

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

Council Priority/City Manager Goals
This agenda item is a routine operational item.

Attachments
^Bid Tab
Packet Pg. 42

CITY OF REDDING

PURCHASING DIVISION-TABULATION OF BIDS
BID SCHEDULE : CONTACT/APPROVAL:

Manufacturer: Lead Time: 38 weeks

ITEM QTY
KVA

SIZE UNIT PRICE

LINE TOTAL

W/OUT TAX

NO LOAD
CORE

LOSS LOSSES

FULL LOAD

WINDING

LOSS LOSSES

UNIT PRICE PLUS BOTH
LOSSES

EVALUATED

LINE TOTAL
1 10 25 $9,430.00 $94,300.00 76 $778.24 250 $222.50 $10,430.74 $104,307.402 10 37.5 $10,050.00 $100,500.00 107 $1,095.68 322 $286.58 $11,432.26 $114,322.603 15 50 $10,290.00 $154,350.00 120 $1,228.80 462 $411.18 $11,929.98 $178,949.704 15 75 $11,640.00 $174,600.00 175 $1,792.00 580 $516.20 $13,948.20 $209,223.005 5 100 $12,260.00 $61,300.00 201 $2,058.24 780 $694.20 $15,012.44 $75,062.20 $585,050.00 $681,864.90
6 6 75 $34,800.00 $208,800.00 270 $2,764.80 430 $382.70 $37,947.50 $227,685.007 7 112.5 $38,590.00 $270,130.00 346 $3,543.04 705 $627.45 $42,760.49 $299,323.438 6 15 $41,200.00 $247,200.00 410 $4,198.40 995 $885.55 $46,283.95 $277,703.709 5 225 $47,050.00 $235,250.00 580 $5,939.20 1290 $1,148.10 $54,137.30 $270,686.5010 5 300 $45,350.00 $226,750.00 675 $6,912.00 1890 $1,682.10 $53,944.10 $269,720.5011 5 500 $49,850.00 $249,250.00 820 $8,396.80 3600 $3,204.00 $61,450.80 $307,254.0012 5 750 $59,800.00 $299,000.00 1060 $10,854.40 5320 $4,734.80 $75,389.20 $376,946.00 $1,736,380.00 $2,029,319.13
13 4 75 $34,700.00 $138,800.00 272 $2,785.28 430 $382.70 $37,867.98 $151,471.9214 4 225 $46,300.00 $185,200.00 590 $6,041.60 1250 $1,112.50 $53,454.10 $213,816.4015 4 300 $53,650.00 $214,600.00 720 $7,372.80 1690 $1,504.10 $62,526.90 $250,107.6016 3 500 $51,650.00 $154,950.00 1075 $11,008.00 2480 $2,207.20 $64,865.20 $194,595.6017 6 750 $58,200.00 $349,200.00 1040 $10,649.60 5400 $4,806.00 $73,655.60 $441,933.6018 4 1000 $64,950.00 $259,800.00 1420 $14,540.80 6400 $5,696.00 $85,186.80 $340,747.20 $1,302,550.00 $1,592,672.32$3,623,980.00 Total Evaluated Cost: $4,303,856.35 DATE OF OPENING:

Group III - Three-Phase 12kV-480/277V
Group I Evaluated Cost:

Group II Evaluated Cost:

Group III Evaluated Cost:

Friday, December 1, 2023 @ 3:00 pm HOPWOOD/ZETTEL
Corporate Bidder: Hyundai Corporation USA
Pad-Type Distribution Transformers5427
Group I - Single-Phase 12kV-120/240VGroup II - Three-Phase 12kV-208/120V International Electric Co., Ltd
M. Kempley - Purchasing Division Page 1 of 5 Packet Pg. 43 Attachment: ^Bid Tab (4.5(b)--Award of Bid Schedule 5427 - Padmount Distribution Transformers) Manufacturer: Lead Time: 52-72 weeks

ITEM QTY
KVA

SIZE UNIT PRICE

LINE TOTAL

W/OUT TAX

NO LOAD
CORE

LOSS LOSSES

FULL LOAD

WINDING

LOSS LOSSES

UNIT PRICE PLUS BOTH
LOSSES

EVALUATED

LINE TOTAL
1 10 25 $12,396.00 $123,960.00 63 $645.12 346 $307.94 $13,349.06 $133,490.602 10 37.5 $14,808.00 $148,080.00 94 $962.56 427 $380.03 $16,150.59 $161,505.903 15 50 $15,958.00 $239,370.00 111 $1,136.64 572 $509.08 $17,603.72 $264,055.804 15 75 $17,763.00 $266,445.00 142 $1,454.08 816 $726.24 $19,943.32 $299,149.805 5 100 $19,991.00 $99,955.00 146 $1,495.04 1130 $1,005.70 $22,491.74 $112,458.70 $877,810.00 $970,660.80
6 6 75 $22,737.00 $136,422.00 176 $1,802.24 974 $866.86 $25,406.10 $152,436.607 7 112.5 $27,254.00 $190,778.00 238 $2,437.12 1356 $1,206.84 $30,897.96 $216,285.728 6 15 $30,701.00 $184,206.00 292 $2,990.08 1726 $1,536.14 $35,227.22 $211,363.329 5 225 $35,870.00 $179,350.00 445 $4,556.80 2179 $1,939.31 $42,366.11 $211,830.5510 5 300 $41,408.00 $207,040.00 530 $5,427.20 2862 $2,547.18 $49,382.38 $246,911.9011 5 500 $51,048.00 $255,240.00 926 $9,482.24 3577 $3,183.53 $63,713.77 $318,568.8512 5 750 $73,661.00 $368,305.00 1055 $10,803.20 5885 $5,237.65 $89,701.85 $448,509.25 $1,521,341.00 $1,805,906.1
9 13 4 75 $22,436.00 $89,744.00 177 $1,812.48 966 $859.74 $25,108.22 $100,432.8814 4 225 $36,594.00 $146,376.00 467 $4,782.08 2098 $1,867.22 $43,243.30 $172,973.2015 4 300 $42,134.00 $168,536.00 543 $5,560.32 2086 $1,856.54 $49,550.86 $198,203.4416 3 500 $46,976.00 $140,928.00 867 $8,878.08 3861 $3,436.29 $59,290.37 $177,871.1117 6 750 $60,522.00 $363,132.00 1153 $11,806.72 5598 $4,982.22 $77,310.94 $463,865.6418 4 1000 $73,747.00 $294,988.00 1595 $16,332.80 6489 $5,775.21 $95,855.01 $383,420.04 $1,203,704.00 $1,496,766.31
$3,602,855.00 Total Evaluated Cost: $4,273,333.30
Group I - Single-Phase 12kV-120/240V
Group I Evaluated Cost:

Group II - Three-Phase 12kV-208/120V
Group II Evaluated Cost:

Group III - Three-Phase 12kV-480/277V
Group III Evaluated Cost:

Corporate Bidder: Mader Supply LLC Howard Industries, Inc M. Kempley - Purchasing Division Page 2 of 5 Packet Pg. 44 Attachment: ^Bid Tab (4.5(b)--Award of Bid Schedule 5427 - Padmount Distribution Transformers) Manufacturer: Lead Time: 26-30 weeks

ITEM QTY
KVA

SIZE UNIT PRICE

LINE TOTAL

W/OUT TAX

NO LOAD
CORE

LOSS LOSSES

FULL LOAD

WINDING

LOSS LOSSES

UNIT PRICE PLUS BOTH
LOSSES

EVALUATED

LINE TOTAL
1 10 25 $4,498.68 $44,986.80 65 $665.60 295 $262.55 $5,426.83 $54,268.302 10 37.5 $4,921.44 $49,214.40 90 $921.60 395 $351.55 $6,194.59 $61,945.903 15 50 $5,344.20 $80,163.00 110 $1,126.40 500 $445.00 $6,915.60 $103,734.004 15 75 $6,180.36 $92,705.40 140 $1,433.60 680 $605.20 $8,219.16 $123,287.405 5 100 $7,796.16 $38,980.80 160 $1,638.40 950 $845.50 $10,280.06 $51,400.30 $306,050.40 $394,635.90
6 6 75 $14,133.32 $84,799.92 145 $1,484.80 890 $792.10 $16,410.22 $98,461.327 7 112.5 $14,800.59 $103,604.13 180 $1,843.20 1400 $1,246.00 $17,889.79 $125,228.538 6 15 $15,298.64 $91,791.84 270 $2,764.80 1460 $1,299.40 $19,362.84 $116,177.049 5 225 $17,587.80 $87,939.00 445 $4,556.80 1890 $1,682.10 $23,826.70 $119,133.5010 5 300 $19,476.96 $97,384.80 460 $4,710.40 2700 $2,403.00 $26,590.36 $132,951.8011 5 500 $24,590.64 $122,953.20 630 $6,451.20 4000 $3,560.00 $34,601.84 $173,009.2012 5 750 $27,245.76 $136,228.80 890 $9,113.60 6080 $5,411.20 $41,770.56 $208,852.80 $724,701.6
9 $973,814.1
9 13 4 75 $14,533.32 $58,133.28 145 $1,484.80 890 $792.10 $16,810.22 $67,240.8814 4 225 $19,661.04 $78,644.16 445 $4,556.80 1890 $1,682.10 $25,899.94 $103,599.7615 4 300 $19,476.96 $77,907.84 460 $4,710.40 2700 $2,403.00 $26,590.36 $106,361.4416 3 500 $24,995.32 $74,985.96 630 $6,451.20 4000 $3,560.00 $35,006.52 $105,019.5617 6 750 $27,045.76 $162,274.56 890 $9,113.60 6080 $5,411.20 $41,570.56 $249,423.3618 4 1000 $30,140.88 $120,563.52 1150 $11,776.00 7560 $6,728.40 $48,645.28 $194,581.12 $572,509.3
2 $826,226.1
2 $1,603,261.41 Total Evaluated Cost: $2,194,676.21
Group II Evaluated Cost:

Group III - Three-Phase 12kV-480/277V
Group III Evaluated Cost:

Corporate Bidder: MVA Power In
c MVA Power
Group I - Single-Phase 12kV-120/240V
Group I Evaluated Cost:

Group II - Three-Phase 12kV-208/120V
M. Kempley - Purchasing Division Page 3 of 5 Packet Pg. 45 Attachment: ^Bid Tab (4.5(b)--Award of Bid Schedule 5427 - Padmount Distribution Transformers) Manufacturer: Lead Time: 24-30 weeks

ITEM QTY
KVA

SIZE UNIT PRICE

LINE TOTAL

W/OUT TAX

NO LOAD
CORE

LOSS LOSSES

FULL LOAD

WINDING

LOSS LOSSES

UNIT PRICE PLUS BOTH
LOSSES

EVALUATED

LINE TOTAL
1 10 25 $8,530.00 $85,300.00 55 $563.20 340 $302.60 $9,395.80 $93,958.002 10 37.5 $8,926.25 $89,262.50 79 $808.96 440 $391.60 $10,126.81 $101,268.103 15 50 $10,220.00 $153,300.00 91 $931.84 585 $520.65 $11,672.49 $175,087.354 15 75 $11,437.50 $171,562.50 133 $1,361.92 761 $677.29 $13,476.71 $202,150.655 5 100 $12,096.25 $60,481.25 170 $1,740.80 910 $809.90 $14,646.95 $73,234.75 $559,906.2
5 $645,698.8
5 6 6 75 $18,517.50 $111,105.00 185 $1,894.40 800 $712.00 $21,123.90 $126,743.407 7 112.5 $19,568.75 $136,981.25 250 $2,560.00 1120 $996.80 $23,125.55 $161,878.858 6 15 $21,025.00 $126,150.00 285 $2,918.40 1530 $1,361.70 $25,305.10 $151,830.609 5 225 $23,236.25 $116,181.25 400 $4,096.00 2070 $1,842.30 $29,174.55 $145,872.7510 5 300 $25,408.75 $127,043.75 521 $5,335.04 2550 $2,269.50 $33,013.29 $165,066.4511 5 500 $32,127.50 $160,637.50 660 $6,758.40 4280 $3,809.20 $42,695.10 $213,475.5012 5 750 $47,290.00 $236,450.00 990 $10,137.60 5590 $4,975.10 $62,402.70 $312,013.50 $1,014,548.7
5 $1,276,881.0
5 13 4 75 $18,442.50 $73,770.00 192 $1,966.08 770 $685.30 $21,093.88 $84,375.5214 4 225 $23,168.75 $92,675.00 410 $4,198.40 2030 $1,806.70 $29,173.85 $116,695.4015 4 300 $25,242.50 $100,970.00 535 $5,478.40 2495 $2,220.55 $32,941.45 $131,765.8016 3 500 $31,443.75 $94,331.25 665 $6,809.60 4260 $3,791.40 $42,044.75 $126,134.2517 6 750 $42,197.50 $253,185.00 973 $9,963.52 5670 $5,046.30 $57,207.32 $343,243.9218 4 1000 $48,953.75 $195,815.00 1130 $11,571.20 7630 $6,790.70 $67,315.65 $269,262.60 $810,746.2
5 $1,071,477.4
9 $2,385,201.2
5 Total Evaluated Cost: $2,994,057.3
9 Group I - Single-Phase 12kV-120/240V
Group I Evaluated Cost:

Group II - Three-Phase 12kV-208/120V
Group II Evaluated Cost:

Group III - Three-Phase 12kV-480/277V
Group III Evaluated Cost:

Corporate Bidder: OneSource Supply Solution
s SETI
M. Kempley - Purchasing Division Page 4 of 5 Packet Pg. 46 Attachment: ^Bid Tab (4.5(b)--Award of Bid Schedule 5427 - Padmount Distribution Transformers) Manufacturer: Lead Time: 50 weeks

ITEM QTY
KVA

SIZE UNIT PRICE

LINE TOTAL

W/OUT TAX

NO LOAD
CORE

LOSS LOSSES

FULL LOAD

WINDING

LOSS LOSSES

UNIT PRICE PLUS BOTH
LOSSES

EVALUATED

LINE TOTAL
1 10 25 $8,840.00 $88,400.00 27 $276.48 220 $195.80 $9,312.28 $93,122.802 10 37.5 $9,130.00 $91,300.00 34 $348.16 308 $274.12 $9,752.28 $97,522.803 15 50 $9,520.00 $142,800.00 40 $409.60 400 $356.00 $10,285.60 $154,284.004 15 75 $10,000.00 $150,000.00 49 $501.76 575 $511.75 $11,013.51 $165,202.655 5 100 $10,500.00 $52,500.00 53 $542.72 992 $882.88 $11,925.60 $59,628.00 $525,000.00 $569,760.2
5 6 6 75 $19,000.00 $114,000.00 60 $614.40 730 $649.70 $20,264.10 $121,584.607 7 112.5 $22,000.00 $154,000.00 85 $870.40 1125 $1,001.25 $23,871.65 $167,101.558 6 15 $24,000.00 $144,000.00 90 $921.60 1550 $1,379.50 $26,301.10 $157,806.609 5 225 $25,100.00 $125,500.00 125 $1,280.00 2170 $1,931.30 $28,311.30 $141,556.5010 5 300 $28,100.00 $140,500.00 155 $1,587.20 2328 $2,071.92 $31,759.12 $158,795.6011 5 500 $38,000.00 $190,000.00 240 $2,457.60 3905 $3,475.45 $43,933.05 $219,665.2512 5 750 $44,000.00 $220,000.00 300 $3,072.00 5470 $4,868.30 $51,940.30 $259,701.50 $1,088,000.00 $1,226,211.60
13 4 75 $18,000.00 $72,000.00 74 $757.76 840 $747.60 $19,505.36 $78,021.4414 4 225 $25,400.00 $101,600.00 170 $1,740.80 1410 $1,254.90 $28,395.70 $113,582.8015 4 300 $27,000.00 $108,000.00 190 $1,945.60 2160 $1,922.40 $30,868.00 $123,472.0016 3 500 $33,000.00 $99,000.00 240 $2,457.60 3300 $2,937.00 $38,394.60 $115,183.8017 6 750 $39,500.00 $237,000.00 300 $3,072.00 5320 $4,734.80 $47,306.80 $283,840.8018 4 1000 $44,000.00 $176,000.00 340 $3,481.60 7500 $6,675.00 $54,156.60 $216,626.40 $793,600.00 $930,727.2
4 $2,406,600.00 Total Evaluated Cost: $2,726,699.0
9 Group II Evaluated Cost:

Group III - Three-Phase 12kV-480/277V
Group III Evaluated Cost:

Corporate Bidder: AMEK A&S, INC. DONG-A Electric Co., Ltd.

Group I - Single-Phase 12kV-120/240V
Group I Evaluated Cost:

Group II - Three-Phase 12kV-208/120V
M. Kempley - Purchasing Division Page 5 of 5 Packet Pg. 47 Attachment: ^Bid Tab (4.5(b)--Award of Bid Schedule 5427 - Padmount Distribution Transformers)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Adopt Resolution approving and adopting the 25th Amendment to City Budget Resolution No. 2023-060 appropriating an additional $220,000 for offsite hosting and licensing fees related to Energy Trading and Modernization; (2) Approve the First Amendment to with Power Settlements Consulting and Software LLC (“Power Settlements”) (C-8458) to move from on-premise to a hosted environment offpremise; (3) Authorize staff to negotiate a one-time hosted environment implementation fee for a notto-exceed fee of $120,750 with Power Settlements, which includes a 15 percent contingency; and
(4) Authorize the City Manager, or designee, to execute software license agreements associated with this project and to approve any required amendments to the agreements.

Fiscal Impact
The total project cost, including contingency, is listed below:

Description Estimated Cost
Hosted Implementation Fee (Including 15% Contingency) $120,750 Off-Premise Hosting Costs – FY2023-2024 $110,000
Off-Premise Hosting Costs – FY2024-2025 $110,000
TOTAL $340,750
The one-time implementation fee costs are available within REU’s Energy Trading Modernization Capital Project. The total anticipated implementation fee is not expected to exceed $120,750.

MEETING DATE: January 16, 2024
ITEM NO. 4.5(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 48
Report to Redding City Council January 11, 2024
Re: 4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements Page 2
The annual off-premise hosting costs were not included in Redding Electric Utility's (REU) Fiscal Year 2023-25 Biennial Budget approved by the City Council (Council) on June 20, 2023.

However, REU has adequate reserves to cover the cost until its financial impact, including improvements in operational efficiency, can be considered as part of the FY 2025-27 biennial budget process.

Alternative Action
The Council could choose not to authorize the amendment allowing Power Settlements to be hosted in an off-premise environment. By maintaining the current on-premise environment, Power Settlements will rely on the City of Redding (City) Energy Management and Information Technology staff to support and maintain their server access, impacting their ability to provide timely support to the system.

Background/Analysis
Power Settlements Settlecore Software is the foundation on which the REU’s Energy Management is built and the backbone of the Energy Trading and Modernization Project as part of the Strategic Plan. Energy Management employees utilize the Settlecore Software in every stage of the business process, including bidding, scheduling, trade capture, and all back-office settlement functions. Many of these processes are time-sensitive and require high reliability.

Power Settlements have been integral to the City's success in the California Independent System Operator (CAISO) Energy Imbalance Market (EIM).

Power Settlements is developing additional custom tools for the City to assist with managing assets such as natural gas storage and transmission. CAISO is in the latter stages of developing an Extended Day Ahead Market (EDAM), which is anticipated to pass Federal Energy Regulatory Commission approval by the end of the year. The City is a member of the Balancing Authority of Northern California, whose leadership has expressed support for the EDAM and will likely announce its intent to join the market. Customizations and future additional modules for EDAM will require extensive time and work by Power Settlements employees on the City’s servers that house the Power Settlements software. Due to the recent requirement of the City to register as a Transmission Owner and Transmission Operator, the City has implemented a more stringent Policy for accessing City servers, requiring oversight when work is being done by outside vendors on City servers. When accessing the on-premise servers, additional planning and monitoring of Power Settlements employees is required. While this is a good policy to protect the City’s servers, it can be problematic and encumbers Power Settlements' ability to make needed updates/fixes in the timeframe required for today’s market business requirements. At times, this can create a financial risk to the City.

The off-premise hosted solution offers several benefits for the City versus the current on-premise servers. With the hosted solution, Power Settlements can provide improved support, better maintain updates, and troubleshoot the platform because they can directly access and monitor the system. The hosted environment offers higher performance, and the servers on the hosted solution are typically superior, making running calculations and other processes faster. The hosted solution improves reliability; it is designed with extremely high availability and better uptime, which is imperative in today’s energy market. Delays in submitting and updating energy schedules can have significant financial consequences.

Packet Pg. 49
Report to Redding City Council January 11, 2024
Re: 4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements Page 3
The Energy Trading and Modernization Project has been very successful. Entry into the EIM has provided significant financial benefits for the City. REU is committed to managing the City’s energy portfolio and assets efficiently to succeed in today’s EIM and the future EDAM.

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
C-8457 Power Settlements Contract
C-8458 Power Settlements Software Contract
Power Settlements Amendment
Packet Pg. 50
RESOLUTION NO. 2024-____

A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 25 TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2023-060
APPROPRIATING $220,000 FOR OFFSITE HOSTING AND LICENSING FEES

RELATED TO ENERGY TRADING AND MODERNIZATION

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2023-060 be and is hereby amended as follows:

FUND DIVISION DESCRIPTION INCREASE DECREASE
211 8015 REU – Energy Management $220,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:

USE SOURCE

OF FUNDS OF FUNDS
Decrease (Increase) Fund Balance
211-8015-2910000-00000 Fund Balance $ 220,000
Increase Expenditures
211-8015-8921302-00000
Administrative & General - PC
Equipment & Software -
Settlecore Software $ 220,000
Total $ 220,000 $ 220,000
THAT the purpose is to appropriate $220,000 for offsite hosting and licensing fees related to energy trading and modernization for fiscal year 2023-2024 and 2024-2025.

I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 16th day of January, 2024, and was duly adopted at said meeting by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

TENESSA AUDETTE, Mayor
ATTEST: FORM APPROVAL:

SHARLENE TIPTON, City Clerk NATALIA K. EBERSOLE,
Interim City Attorney
Packet Pg. 51
Attachment: ^Resolution (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 52
Attachment: ^Resolution (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 53
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 54
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 55
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 56
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 57
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 58
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 59
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 60
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 61
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 62
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 63
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 64
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 65
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 66
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Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 68
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 69
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 70
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 71
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 72
Attachment: C-8457 Power Settlements Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 73
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 74
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 75
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 76
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 77
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 78
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 79
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 80
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 81
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 82
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 83
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 84
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 85
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 86
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 87
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 88
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 89
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 90
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 91
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 92
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 93
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Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 96
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 97
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 98
Attachment: C-8458 Power Settlements Software Contract (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Packet Pg. 99
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 100
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 101
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 102
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 103
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 104
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 105
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 106
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 107
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 108
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 109
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 110
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 111
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements) Packet Pg. 112
Attachment: Power Settlements Amendment (4.5(c)--Approve Budget Resolution and the First Amendment to C-8458 with Power Settlements)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Request for Proposals Schedule No. 5418, Architectural and Engineering Design Services for the South City Park Project:
(1) Award to Gates & Associates;
(2) Authorize the City Manager, or designee, to execute a Consulting and Professional Services Contract with Gates & Associates for an amount not to exceed $623,050; and (3) Authorize the City Manager, or designee, to approve any amendments up to $62,300.

Fiscal Impact
The cost of the architectural and engineering design for the South City Park Project is estimated at $623,050. The City of Redding (City) currently has $3.5 million in identified funding for the project, which is anticipated to cost a total of $7 million. In October of 2023, the United States Department of Housing and Urban Development approved a $2.4 million Community Development Block Grant Section 108 Loan. The Section 108 Loan will fund the design and construction of infrastructure improvements at South City Park. The remaining funding identified for the project consists of $1.1 million in Park Development and In-Lieu funds. Staff has applied for multiple grants to make up the $3.5 million difference and expects awards to be announced in January 2024.

Since South City Park is not part of a landscape maintenance district, the new park facilities will require further funding for operations and maintenance. Anticipated maintenance costs will be explored as part of the City’s unmet needs workshop in March.

Alternative Action
The City Council (Council) could choose not to award the contract to Gates & Associates and provide staff with an alternate direction.

MEETING DATE: January 16, 2024
ITEM NO. 4.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.6(a)--Award RFP Schedule 5418 for Architectural and Engineering Services for South City Park
Travis Menne, Director of
Community Services
Packet Pg. 113
Report to Redding City Council January 11, 2024
Re: 4.6(a)--Award RFP Schedule 5418 Page 2
Background/Analysis
At their June 21, 2022 meeting, the Council approved a concept to reimagine South City Park and authorized staff to refine the concept, develop a program, and estimate project costs with assistance from Project for Public Spaces. At the December 6, 2022 Council meeting, Council approved the resulting South City Park Activation Plan and a grant application for the Outdoor Recreation Legacy Partnership (ORLP) program. Staff submitted the ORLP grant application, and CA State Parks recommended it to National Parks Service for the next competitive round.

An announcement is expected in January 2024.

Staff is beginning the design process for the project, which is estimated to cost $7 million for the following components of the South City Park Design and Activation Plan:
• Destination playground with spray/misting/water feature; • Arrival and activities plaza;
• Flex greenspace;
• Pickleball court complex;
• Youth area, including a skate plaza, basketball court, lounge areas, climbing, and rope features;
• Improvements and renovations to existing restrooms, baseball field, and bocce ball courts;
• Conversion of existing pathways to a walking/jogging loop with wayfinding and distance markers;
• Lighting and landscaping throughout;
• Small dog park; and
• Removal of the existing tennis courts and basketball courts.

As part of the design process, the City must contract with qualified design firms to create buildable plans for project construction as outlined above. On October 23, 2023, the City issued a Request for Proposal (RFP) for architectural and engineering services to design South City Park. The RFP resulted in five firms submitting proposals, listed as follows:
• Gates & Associates;
• NJA Architecture;
• Melton Design Group;
• Roach & Campbell; and
• CALA.

A three-member selection panel, consisting of City staff from the Engineering Division and the Community Services Department, evaluated the proposals based on the criteria outlined in the RFP. The criteria consisted of project understanding, project approach, responsible personnel, project schedule and related experience, which included a minimum of three references.

Following the review of the proposals and ranking by staff, the group selected Gates & Associates as their overall recommendation.

Packet Pg. 114
Report to Redding City Council January 11, 2024
Re: 4.6(a)--Award RFP Schedule 5418 Page 3
It was the opinion of the selection panel that Gates & Associates demonstrated an ability to meet the objectives of the RFP, fully understood the activation plan, and related the importance of creating the perception of safety through design. The consultant had several examples of park projects and many with similar renovations. Their team makeup also scored highly. They were one of only two consultants that submitted proposals with a team that included a skate park design firm, which will be necessary for the youth area’s skate plaza. Lastly, when City staff contacted their references, Gates & Associates were highly recommended by previous clients.

The RFP is a qualification-based selection process. Following the proposal review and coming to a group consensus, staff evaluated the cost proposal and determined the proposed costs are consistent with pre-proposal estimates and they provide good value for the services included.

Additionally, Gates & Associates’ cost proposal was the lowest received.

Environmental Review
This action is not a project as defined under the California Environmental Quality Act (CEQA), and no further action is required. On December 6, 2022, Council found that the project is categorically exempt from review under the CEQA Guidelines, per Sections 15301(d) – Existing Facilities, 15302(c) – Replacement or Reconstruction, and 15303(d & e) - New Construction or Conversion of Existing Structures.

Council Priority/City Manager Goals
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
• 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
Consulting and Professional Services Contract - Signed
Previous Staff Report - Grant Application - December 6, 2022 Previous Staff Report - Grant Application - June 6, 2023 Previous Staff Report - Approve Funding Changes - November 1, 2022 Packet Pg. 115
Packet Pg. 116
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 117
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 118
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 119
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 120
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 121
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 122
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 123
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 124
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 125
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 126
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 127
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 128
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 129
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 130
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 131
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 132
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 133
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 134
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 135
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 136
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 137
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418) Packet Pg. 138
Attachment: Consulting and Professional Services Contract - Signed (4.6(a)--Award RFP Schedule 5418)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following relative to the design, funding, permitting, engineering, and construction of improvements at South City Park:
(1) Approve the conceptual plan;
(2) Authorize the submission of an Outdoor Recreation Legacy Partnership application in the amount of $3.5 million to begin phase one construction of the South City Park improvements;
(3) Find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, per Sections 15301(d) – Existing Facilities, 15302(C) – Replacement or Reconstruction, and 15303(d & e) - New Construction or Conversion of Existing Structures; and
(4) Authorize the City Manager, or designee, to execute all documents necessary to complete the Outdoor Recreation Legacy Partnership Program application process.

Fiscal Impact
Approving the conceptual plan has no direct fiscal impact. This decision will set a course in motion to secure the funding necessary to construct this park design.

The Outdoor Recreation Legacy Partnership (ORLP) Program grant application will request up to $3.5 million to begin phase one construction of the South City Park (Park) improvements. The ORLP Program requires a 50 percent match, which will be sourced from the CDBG Section 108 Loan authorized by the City Council (Council) at the November 1, 2022, meeting and additional park development and grant funds. Funding for phase two elements of the Park project will require alternate funding sources and/or additional grants.

MEETING DATE: December 6, 2022
ITEM NO. 9.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(a)--Consider conceptual plan and authorize submittal of the Outdoor Recreation Legacy Partnership Grant Application for South City Park in the City of Redding.

Kim Niemer, Community
Services Director
Packet Pg. 139 Attachment: Previous Staff Report - Grant Application - December 6, 2022 (4.6(a)--Award RFP Schedule 5418) Report to Redding City Council December 1, 2022
Re: 9.6(a)--Approve Concept Plan & Authorize Grant Application for South City Park Page 2 Alternative Action
The Council could choose to not approve the conceptual plan, decline to apply for the funds under this grant opportunity, or provide staff with alternative direction.

Background/Analysis
South City Park, Redding’s oldest park, is nearly 100 years old and is uniquely poised to serve the community. It has, within its boundaries, a baseball field, bocce ball courts, tennis courts, a basketball court, walkways, and open grassy areas for picnicking, sitting, and other informal uses. In recent years, community utilization decreased, and the Park needed revitalization to return to its original vibrancy. On November 16, 2021, staff presented a proposal to the Council, recommended by the Community Services Advisory Commission, to conduct a broad community engagement effort regarding the future of the Park.

Since the City Council approved a thorough community process to address the future of the Park in November 2021, the Community Services Department has launched a series of engagements.

Three open houses were conducted — two in-person and on-site and another through Zoom.

Community Services Department staff led discussions and used pop-up boards to collect data that reflects the priorities of the community. Staff also created an online survey in order to reach greater community engagement and reach those who were not able to be heard or were unable to attend open houses. From December 1 through January 19, the public survey collected almost 1,300 responses. Results highlighted the difficulty in accessing the park by foot or bike and the perception of a current lack of safety when utilizing the Park.

Staff retained the services of Project for Public Spaces (PPS), a multi-disciplinary firm that has facilitated many public placemaking community engagement efforts, published multiple studies and reports on the subject, and assisted communities in reactivating neglected public spaces. PPS made two extended site visits and convened over a dozen focus groups as well as key interviews.

At the June 16, 2022, meeting, the Council approved a concept to reimagine the Park and authorized staff to refine the concept, develop a program, and estimate project costs with PPS.

At the Council meeting on November 15, 2022, the Council requested the item be reconsidered at the December 6, 2022, meeting.

The consideration is for the updated conceptual plan, including a revised layout including:
• Arrival and activities plaza (7,300 sq. ft.)
• Destination playground (25,200 sq. ft.)
• Multi-use pavilion (4,500 sq. ft.)
• Covered porch (1,600 sq. ft.)
• Flex lawn (26,500 sq. ft.)
• Pickleball Courts (17,280 sq. ft.)
• Youth area (12,000 sq. ft.)
• Fenced dog area (6,000 sq. ft.)
Packet Pg. 140 Attachment: Previous Staff Report - Grant Application - December 6, 2022 (4.6(a)--Award RFP Schedule 5418) Report to Redding City Council December 1, 2022
Re: 9.6(a)--Approve Concept Plan & Authorize Grant Application for South City Park Page 3 The design draws from over 40 years of placemaking work in communities large and small, focused on bringing neglected and underutilized spaces back to life. It layers a variety of activities, age groups, active and passive uses, and schedules to build an attractive and active public space. The design for the Park creates a new focal entry point, a circulation pattern, an arrangement of activity spaces, and other necessary features such restrooms, storage, tables, chairs, benches, bike racks, and portable play items.

The suggested program matrix (page 28-31) includes a variety of daily, weekly, monthly, and annual events with seasonal offerings such as musical performances, specialty markets, lawn game tournaments, chili cook-offs, Paesano Days, Library programs, and more.

Construction costs are estimated at $8-$10 million, which exceeds the existing $2.5 million budget, and staff is seeking additional funding to begin engineering and construction of the plan.

The ORLP is a National Park Service (NPS) grant program focusing on communities with little to no access to nearby, publicly available, outdoor recreation opportunities in urban areas. The program funds the acquisition or development of new parks and substantial park renovations in economically disadvantaged cities or towns of at least 30,000 people. Use of this grant source will require the City to ensure that South City Park remain an outdoor recreation use area into perpetuity.

ORLP includes two competitive processes. California’s Department of Parks and Recreation reviews applications, selects finalists, and then forwards the finalists to the National Park Service for a nationwide review. Applications are due December 15, 2022, and the estimated award date is January 1, 2024. The application will request approximately $3.5 million to implement phase one of construction, which could include features such as the playground, pickleball courts, flex lawn, entry plaza, and youth area. Staff anticipates needing additional funding sources for the remaining project elements that will be considered by the Council at a future meeting.

Environmental Review
Staff has determined that the project is categorically exempt from review under the California Environmental Quality Act (CEQA) Guidelines, per Sections 15301(d) – Existing Facilities, 15302(C) – Replacement or Reconstruction, and 15303(d & e) - New Construction or Conversion of Existing Structures. Class 1 exemptions include the minor alteration of existing public structures and facilities. Class 2 exemptions consists of replacement or reconstruction where the new structure will be located on the same site and will have substantially the same purpose and capacity. Class 3 exemptions consist of construction and location of new small facilities and equipment, or conversion of existing structures. The existing park will be renovated to meet public recreational needs with modern accessible amenities that meet public safety standards. The project will be located on the same site, will have the same purpose and capacity, and will result in a negligible expansion of use. The action area does not have significant values for wildlife habitat or other environmental resources and the project has no potential to have a significant effect on the environment.

If the City receives a grant, the National Park Service will conduct a coordinated National Environmental Policy Act (NEPA) review with the City. No further action is required at this time.

Packet Pg. 141 Attachment: Previous Staff Report - Grant Application - December 6, 2022 (4.6(a)--Award RFP Schedule 5418) Report to Redding City Council December 1, 2022
Re: 9.6(a)--Approve Concept Plan & Authorize Grant Application for South City Park Page 4 Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” • Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
Project for Public Spaces Final Report
South City Park CEQA NOE
Packet Pg. 142 Attachment: Previous Staff Report - Grant Application - December 6, 2022 (4.6(a)--Award RFP Schedule 5418)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve and authorize the following actions relative to the National Park Service Land and Water Conservation grant program:
(1) Ratify the grant application to the Land and Water Conservation Fund requesting up to $3.5 million to begin phase one construction of the South City Park improvements; (2) Adopt Resolution approving the City of Redding as an applicant for the Land and Water Conservation Fund; and
(3) Authorize the City Manager, or designee, to execute all documents necessary to apply for the grant.

Fiscal Impact
The Land and Water Conservation Fund (LWCF) grant application will request up to $3.5 million to begin phase one construction of the South City Park (Park) improvements. The LWCF grant application requires a 50 percent match, funded by a combination of Park Development funds and a $2.4 million Community Development Block Grant (CDBG) Section 108 Loan, as authorized by the City Council (Council) at the November 1, 2022 meeting. This grant program will not cover overhead beyond direct costs for salary and benefits. Staff is examining alternative approaches to reduce or eliminate this overhead expense.

Alternative Action
The Council could provide staff with alternative direction or decline to ratify the application for this grant opportunity. In this case, staff would contact the grant agency to withdraw the application.

MEETING DATE: June 6, 2023
ITEM NO. 4.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.6(a)-- Ratify Grant Application and Adopt Resolution for Land and Water Conservation Fund for South City Park
Kim Niemer, Community
Services Director
Packet Pg. 143 Packet Pg. 80 Attachment: Previous Staff Report - Grant Application - June 6, 2023 (4.6(a)--Award RFP Schedule 5418) Report to Redding City Council June 1, 2023
Re: 4.6(a)--Ratify Application and Adopt Resolution for Land and Water Conservation FundPage 2 Background/Analysis
At their June 21, 2022, meeting, the Council approved a concept to reimagine the Park and authorized staff to refine the concept, develop a program, and estimate project costs with assistance from Project for Public Spaces. At the December 6, 2022 Council meeting, Council approved the South City Park Activation Plan and a grant application for the Outdoor Recreation Legacy Partnership (ORLP) program. Staff submitted the ORLP grant application, and CA Parks recommended it to National Parks Service for the next competitive round. An announcement is expected in the next few months.

Staff is seeking another grant to improve the chances of receiving funds for the South City Park project. The LWCF is a National Park Service (NPS) grant program focusing on communities with limited access to nearby, publicly available outdoor recreation opportunities in urban areas.

The program funds the acquisition or development of new parks and substantial park renovations in economically disadvantaged and park-deficient areas. The City’s application for LWCF funding requests approximately $3.5 million to implement phase one park construction. The NPS funds both the ORLP and the LWCF programs and will only fund one grant per project. If the City is successful with ORLP, the LWCF application will be withdrawn. Construction costs are estimated at $7 million for the following components of the South City Park Design and Activation Plan:
• Arrival and activities plaza
• Pickleball courts
• Destination playground
• Flex lawn
• Youth area with basketball and skate plaza
• Fenced dog area
• Lighting and landscaping throughout
The California State Parks Office of Grants and Local Services encouraged staff to apply for the grant as a backup to the previous ORLP application. The quick application turnaround did not allow staff enough time to seek Council permission prior to the June 1, 2023 grant submission date. If successful, the grant agreement will include a deed restriction requiring that South City Park remain an outdoor recreation use area in perpetuity. Funding for phase two elements of the Park project, such as the multi-use pavilion, will require alternate funding sources.

Environmental Review
This action is not a project as defined under the California Environmental Quality Act (CEQA), and no further action is required. On December 6, 2022, Council found that the project is categorically exempt from review under the CEQA Guidelines, per Sections 15301(d) – Existing Facilities, 15302(c) – Replacement or Reconstruction, and 15303(d & e) - New Construction or Conversion of Existing Structures.

Packet Pg. 144 Packet Pg. 81 Attachment: Previous Staff Report - Grant Application - June 6, 2023 (4.6(a)--Award RFP Schedule 5418) Report to Redding City Council June 1, 2023
Re: 4.6(a)--Ratify Application and Adopt Resolution for Land and Water Conservation FundPage 3 Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” • Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Resolution
So City Park Activation Plan
Staff Report 8346-Plan and Design
Staff Report 8645-To Approve Funding Changes
Staff Report 8744-To Approve Plan and Grant
Packet Pg. 145 Packet Pg. 82 Attachment: Previous Staff Report - Grant Application - June 6, 2023 (4.6(a)--Award RFP Schedule 5418)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to grant funding for the South City Park and Block 7 Project infrastructure projects:
(1) Authorize the following actions related to the United States Department of Housing and Urban Development Community Development Block Grant (CDBG) Section 108 Loan Guarantee Program (Section 108 Program):
a. Adopt Resolution approving the CDBG Section 108 Program application in the amount of $3,737,000;
b. Authorize the City Manager to re-appropriate funding upon approval of CDBG Section 108 Program application for design and improvements at South City Park; c. Authorize the City Manager to execute any documents necessary to modify the Section 108 Program application and facilitate the funding changes; and (2) Authorize the following actions related to the American Rescue Plan Act (ARPA) funding:
a. Adopt Resolution approving and adopting the 70th Amendment to City Budget Resolution No. 2021-078 decreasing existing allocations for South City Park by $2,407,730 and appropriating $2,407,730 in ARPA funding to Block 7 project infrastructure; and
b. Authorize the City Manager to execute any documents necessary to facilitate the funding changes.

Fiscal Impact
Should the City Council (Council) approve this item, it will switch funding sources between the Block 7 and South City Park Projects. As these are two grant-funded projects, there is no impact to the General Fund.

MEETING DATE: November 1, 2022
ITEM NO. 4.6(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.6(c)--Approve Funding Changes for South City Park and Block 7 Projects Kim Niemer, Community
Services Director
Packet Pg. 146 Attachment: Previous Staff Report - Approve Funding Changes - November 1, 2022 (4.6(a)--Award RFP Schedule 5418) Report to Redding City Council October 26, 2022
Re: 4.6(c)--Approve Funding Changes for South City Park and Block 7 Projects Page 2 Alternative Action
The Council could decline to reallocate or switch funding sources for the Block 7 and South City Park projects. This action will limit opportunities for staff to obtain supplemental grant funding for South City Park.

Background/Analysis
South City Park, Redding’s oldest park, is nearly 100 years old and is uniquely poised to serve the community. It has, within its boundaries, a baseball field, bocce ball courts, tennis courts, a basketball court, walkways, and open grassy areas for picnicking, sitting, and other informal uses. In recent years, community utilization decreased in the park and South City Park needed revitalization to return to its original vibrancy.

On November 16, 2021, staff presented a proposal to the Council, recommended by the Community Services Advisory Commission (CSAC), to conduct a broad community engagement effort regarding the future of South City Park. Following the community engagement, on March 15, 2022, the Council opted to allocate Coronavirus State and Local Fiscal Recover Funds, also known as SLFRF and American Rescue Plan Act (ARPA), toward the revitalization efforts of South City Park. Staff retained the services of Project for Public Spaces (PPS), a multi-disciplinary firm that has facilitated many public placemaking community engagement efforts, published multiple studies and reports on the subject, and assisted communities in reactivating neglected public spaces.

At the June 16, 2022, meeting, the Council approved a concept to reimagine South City Park and authorized staff to refine the concept, develop a program, and estimate project costs with PPS.

Construction costs will exceed the $2.5 million ARPA allocation. Staff discovered, while investigating other grant funding opportunities to address the funding gap, that some available grant programs do not accept ARPA funds as a match funding source. CDBG funding, however, is an eligible source of match for most federal programs. By reallocating previously authorized CDBG Section 108 Program funds for South City Park, rather than ARPA funding, staff may seek out and apply for grant opportunities to fully fund the South City Park improvements.

The CDBG Section 108 Program provides communities with a source of financing for economic development, housing rehabilitation, and public facilities. The Section 108 Program loan funds are borrowed and subsequently repaid by the City through its current and future CDBG allocations over a 20-year term. The current loan application specified infrastructure improvements on the Block 7 project. Necessary Block 7 project improvements include water, wastewater, storm drains, and underground utility infrastructure to support income-eligible housing, all of which are approved uses for ARPA funding. Staff proposes to move the Block 7 improvements to the ARPA program and the South City Park improvements to the CDBG Section 108 Program. The change in allocations will unlock more funding opportunities for South City Park. Staff will return to the Council to obtain authority to apply for grants as needed.

Environmental Review
This action is not a project as defined under the California Environmental Quality Act (CEQA), and no further action is required. Environmental studies are in progress for South City Park, and a CEQA/NEPA determination will be made prior to construction.

Packet Pg. 147 Attachment: Previous Staff Report - Approve Funding Changes - November 1, 2022 (4.6(a)--Award RFP Schedule 5418) Report to Redding City Council October 26, 2022
Re: 4.6(c)--Approve Funding Changes for South City Park and Block 7 Projects Page 3 For Block 7, on November 10, 2017, after the Planning Commission held a public hearing, it approved Use Permit UP-2017-01322, and a CEQA Notice of Exemption was filed on November 22, 2017. The NEPA Authority to Use Grant Funding document was executed by the U.S.

Department of Housing and Urban Development on August 19, 2019.

Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” • Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Resolution
^Resolution - Budget
Sep 26_2019_Staff Report
Mar 15_2022_9.10(b) Staff Report
June 16_2022_9.6(a) Staff Report
Aug 2_2022_Resolution
Aug 2_2022_Staff report
Packet Pg. 148 Attachment: Previous Staff Report - Approve Funding Changes - November 1, 2022 (4.6(a)--Award RFP Schedule 5418)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Bid Schedule No. 5414 for furnishing various chemicals:
(1) Award contracts to Helix Labs, Wintersun Chemical, Thatcher Chemical, and Univar USA, Inc., for a total annual evaluated cost of $339,965.50 through December 31, 2024, not inclusive of sales tax, mill fees, or shipping;
(2) Authorize staff to purchase various chemicals from each of the suppliers depending on market availability or delays in product delivery; and
(3) Authorize the Purchasing Officer to approve quarterly rate changes and manufacturer price increases.

Fiscal Impact
Sufficient funds for these various chemicals are available in each of the respective department budgets - Public Works, Redding Electric Utility and Community Services.

Alternative Action
The City Council may choose not to award the bids. Without these chemicals, the wastewater treatment plants, Redding Power Plant, and the Redding Aquatic Center would not be able to operate or meet the State Water Resources Control Board’s regulatory requirements.

Background/Analysis
On October 26, 2023, the Purchasing Division solicited Bid No. 5414 for various chemicals. In total, four bids were received that included: Helix Labs, Univar USA, Inc., Wintersun Chemical and Thatcher Chemical Company. Each bid was found to be responsive, with the lowest responsive bidder for the specified chemicals being summarized in the attached bid tab. The total annual evaluated cost does not include freight charges.

MEETING DATE: January 16, 2024
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(a)--Award Bid Schedule No. 5414 for Various Chemicals Michael Webb, Public Works
Director
Packet Pg. 149
Report to Redding City Council January 11, 2024
Re: 4.11(a)--Award Bid for Various Chemicals Page 2
The chemicals are used for various water treatment processes at the respective facilities. They are necessary to balance pH levels, chlorinate and disinfect water, and clean equipment. The Redding Aquatic Center uses these chemicals for the swimming pools, the Redding Power Plant for gas turbine exhaust and cooling tower water, and the wastewater plants for several water treatment processes.

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

Council Priority/City Manager Goals
• This agenda item is a routine operational item.

Attachments
^Bid Tab
Packet Pg. 150

CITY OF REDDING

PURCHASING DIVISION - TABULATION OF BIDS
BID: DELIVERY OF VARIOUS CHEMICALS
BID SCHEDULE NO. DATE OF OPENING
5414 THURSDAY, October 26, 2023

TIME OF OPENING
3:00 P.M.

ITEM UNIT PRICE YEARLY UNIT PRICE YEARLY UNIT PRICE YEARLY UNIT PRICE YEARLY 1 $3.6238 $126,833.00
2 $0.8800 $3,960.00
3 $3.35 $7,705.00
4 $0.25 $85,937.50
5 $1.1200 $1,120.00
6 $3.50 $73,500.00 $3.50 $14,000.00
7 $5.98 $26,910.00
Stillwater WWTP
Hydrochloric Acid, 15% (Thatcher)
Magnesium Hydroxide, 60% (Helix)
Sodium Hypochlorite, 12.5% (Univar)
Sulfuric Acid, 93% (Univar)
Sodium Bicarbonate (Wintersun)
Clear Creek WWTP
Calcium Chloride (Thatcher)
Caustic Soda 50% (Univar)

DESCRIPTION
Redding Power Plant
Redding Aquatic Center
Packet Pg. 151 Attachment: ^Bid Tab (4.11(a)--Award Bid for Various Chemicals)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Bid Schedule No. 5431 for furnishing liquid chlorine, sodium bisulfite, and sodium hypochlorite:
(1) Award to Thatcher Company of California, Inc. for a total annual evaluated cost of $609,275 (not including tax and freight);
(2) Authorize the Purchasing Officer to approve the annual contract extensions through December 31, 2028; and
(3) Authorize the Purchasing Officer to approve price adjustments per manufacturer price increases, inflation, and other market factors.

Fiscal Impact
Sufficient funds for liquid chlorine, sodium bisulfite, and sodium hypochlorite are available in the respective Water and Wastewater Utility budgets.

Alternative Action
The City Council may choose not to award the bid. Without liquid chlorine, sodium bisulfite, and sodium hypochlorite, the treatment plants would not be able to operate or meet the State Water Resources Control Board’s regulatory requirements.

Background/Analysis
Attached is a tabulation of bids received and opened on December 11, 2023. Eleven bid opportunity notices were distributed to potential vendors, in addition to advertising this bid opportunity in the local newspaper and posting the full document on the City of Redding’s website. Two responsive bids were received. Thatcher Company of California, Inc. and Univar Solutions USA Inc., with Thatcher being the lowest bidder for all chemicals on the bid tab.

MEETING DATE: January 16, 2024
ITEM NO. 4.11(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(b)--Award Bid No. 5431 for Liquid Chlorine, Sodium Bisulfite and Sodium Hypochlorite
Michael Webb, Public Works
Director
Packet Pg. 152
Report to Redding City Council January 9, 2024
Re: 4.11(b)--Award Bid for Liquid Chlorine, Sodium Bisulfite and Sodium Hypochlorite Page 2 The bids are based on a unit price, and the quantities vary from year-to-year depending on the plant’s needs. The pricing may change quarterly per the deviation noted on the bid submittal.

The initial contract will be from January 1, 2024, through December 31, 2024. The contract may be extended annually through December 31, 2028, by the Purchasing Officer. The total annual evaluated cost does not include sales tax or freight charges.

The Clear Creek and Stillwater Wastewater Treatment Plants and the Foothill and Buckeye Water Treatment Plants all use chlorine for water disinfection treatment purposes. In addition, the wastewater treatment plants use liquid sodium bisulfite to remove the chlorine from the water/effluent prior to discharge into the Sacramento River. The chemicals are delivered on a weekly basis to meet the stringent State Water Resources Control Board regulatory requirements of the respective plants.

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

Council Priority/City Manager Goals
• This is a routine operational item.

Attachments
^Bid Tab
Packet Pg. 153

CITY OF REDDING
PURCHASING DIVISION ‐ TABULATION OF BIDS
BID:

DATE OF OPENING
5431 MONDAY, December 11, 2023
Josh Vandiver TIME OF OPENING
Michael Webb 3:00 P.M.

QTY
1 thru 4
5 +
1 thru 3
4+
*Bulk Delivery Cost
Deposit Charge Per Tote
Freight Delivery Cost
*Bulk Delivery Cost
Liquid Sodium Bisulfite, 25% ‐ 275 gl Tote

LIQUID SODIUM HYPOCHLORITE
Liquid Sodium Hypochlorite, 12.5% ‐ 275 gl Tote
*Bulk Delivery Cost
Freight Delivery Cost

DESCRIPTION

LIQUID CHLORINE
1 Ton Containers
1 Ton Containers
Freight Cost
Deposit Charge Per Container
150 lb Containers
150 lb Containers
Freight Cost
Deposit Charge Per Container

LIQUID SODIUM BISULFITE
Liquid Sodium Bisulfite, 38% ‐ 275 gl Tote
Unit Price Unit Price
Furnish Liquid Chlorine, Sodium
Bisulfite, and Sodium Hypochlorite Thatcher Univar
SCHEDULE NO.
$2,450.00
$1,000.00
$1.10/lb
$1.10/lb
$2.83/lb
$2,450.00
$2.83/lb
$150.00
$1.68/gal $4.77/gl
$2,050.00 Included
$2.23/gal $6.11/gl
$2,050.00 Included
$2,050.00 Included
$2450 tote; $2050 bulk Included
$250.00 Included
$1,045.00 $4.26/gl
$2.30/gal. FOB
Thatcher Facility
Included
Packet Pg. 154 Attachment: ^Bid Tab (4.11(b)--Award Bid for Liquid Chlorine, Sodium Bisulfite and Sodium Hypochlorite)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept Bid Schedule No. 5362 (Job No. 2698), ADA Curb Ramps Project 2023, awarded to Axner Excavating, Inc., as satisfactorily complete, with a final cost of $330,606.46.

Fiscal Impact
This project was funded by multiple sources including Community Development Block Grant (CDBG) funds in the amount of $75,000, Water Utility funds in the amount of $25,000, and Streets Division funds in the amount of $260,000, for specific items of work within each division’s responsibility, for Fiscal Year 2022-23. The total project cost, including surveying, design, bidding, construction, field engineering, inspection, and contract administration, is $330,606.46.

Alternative Action
The City Council (Council) may choose not to accept the project as satisfactorily complete, and advise staff on how to proceed.

Background/Analysis
As of October 2, 2023, Axner Excavating, Inc., successfully completed all items of work on the ADA Curb Ramp 2023 Project within the contract time frame. Subsequently, the Public Works Department filed a notice of completion with Shasta County thereby commencing the project’s one-year warranty period (expires October 2, 2024).

MEETING DATE: January 16, 2024
ITEM NO. 4.11(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023
Michael Webb, Public Works
Director
Packet Pg. 155
Report to Redding City Council January 11, 2024
Re: 4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023 Page 2
At its meeting of June 6, 2023, the Council awarded a construction contract to Axner Excavating, Inc. for $220,531 and approved a $30,000 construction contingency fund. Also authorized was $50,000 for contract administration and construction inspection fees and $40,000 for project development costs, and the City Manager was authorized to approve additional increases in either the construction management or construction contingency amounts up to a total of $15,000, for a total authorized amount of $355,531. Project development costs include engineering, environmental, and consultant services. During construction, it was discovered that significant changes were required at various locations in order to meet ADA requirements which resulted in the transfer of City Manager Funds in the amount of $15,000 into the construction contingency. There was one change order in the amount of $40,075.46, leaving a balance of $4,924.54 in the contingency fund. The final project cost was $330,606.46.

Cost Summary
Awarded Amounts Actual Cost
Project Development Costs $40,000 $40,000
Construction Contract +
Contingency + City Manager Funds $265,531
Construction Contract + Contract
Change Orders $260,606.46
Contract Administration &
Inspection $50,000 $30,000
Total $355,531 $330,606.46
The project involved constructing ADA compliant curb ramps at 18 locations without existing curb ramps on the east side of the City of Redding. The project also provided for the replacement of two fire hydrants impacting pedestrian accessible routes.

Environmental Review
This action is not a project as defined by the California Environmental Quality Act (CEQA) or the National Environmental Policy Act (NEPA). On June 6, 2023, Council determined that the ADA Curb Ramp Project 2023 is categorically exempt from review under the CEQA Guidelines, pursuant to Section 15301 (Existing Facilities), and categorically excluded from review under NEPA, pursuant to 24 CFR Part 58.35(a), but converted to exempt status (24 CFR Part

58.34(a)(21)). No further action is required.

Council Priority/City Manager Goals
• This agenda item is a routine operational item.

Attachments
^Location Map
Request for Transfer of Project Funds
Previous Staff Report
Packet Pg. 156
2 of 2

PROJECT SITE MAP

CITY OF REDDING

PUBLIC WORKS

DEPARTMENT
NTS

ADA CURB RAMP PROJECT

SITE LOCATION MAP
15 16
18 11
12 13
14 17
1 2 4 5
3 6 7
8 9
10 PROJECT
SITE 1

PROJECT
SITE 2
Packet Pg. 157 Attachment: ^Location Map (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023) Packet Pg. 158
Attachment: Request for Transfer of Project Funds (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Packet Pg. 159 Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023) Packet Pg. 160 Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023) Packet Pg. 161 Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023) Packet Pg. 162
Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, 2023
Packet Pg. 163 Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023) Packet Pg. 164 Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023) Packet Pg. 165 Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023) Packet Pg. 166 Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023) Packet Pg. 167 Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023) Packet Pg. 168 Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023) Packet Pg. 169 Attachment: Previous Staff Report (4.11(c)--Project Acceptance, Bid Schedule No. 5362, Job No. 2698, ADA Curb Ramps Project 2023)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept Bid Schedule No. 5367 (Job No. 2692), Wastewater Treatment Plant Generators, awarded to Stewart Engineering, Inc. as satisfactorily complete, with a final cost of $519,158.07.

Fiscal Impact
Wastewater Utility funding in the amount of $616,820 was approved for this project for Fiscal Year 2022-23. The total project cost, including surveying, design, bidding, construction, field engineering, inspection, and contract administration is $519,158.07.

Alternative Action
The City Council (Council) may choose not to accept the project as satisfactorily complete, and advise staff on how to proceed.

Background/Analysis
Stewart Engineering, Inc. successfully completed all items of work on the Wastewater Treatment Plant Generators as of November 7, 2023, within the contract time frame. Subsequently, the Public Works Department filed a notice of completion with Shasta County and the project entered the one-year warranty period (expires November 7, 2024).

At its meeting of June 6, 2023, the Council awarded a construction contract to Stewart Engineering, Inc. for $366,820 and approved a $40,000 construction contingency fund. Also authorized was $69,000 for contract administration and construction inspection fees and $91,000 for project development costs, and the City Manager was authorized to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000, for a total authorized amount of $616,820. Project development costs include engineering, environmental, and consultant services. During construction, there were two change orders in the amount of $16,338.07, leaving a balance of $23,661.93 in the contingency fund. The final project cost was $519,158.07.

MEETING DATE: January 16, 2024
ITEM NO. 4.11(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(d)--Project Acceptance, Bid Schedule No. 5367, Job No. 2692, Wastewater Treatment Plant Generators Project
Michael Webb, Public Works
Director
Packet Pg. 170
Report to Redding City Council January 11, 2024
Re: 4.11(d)--Project Acceptance, Bid Schedule No. 5367, WWTP Generators Page 2 Cost Summary
Awarded Amounts Actual Cost
Project Development Costs $91,000 $91,000
Construction Contract +
Contingency $406,820
Construction Contract + Contract
Change Orders $383,158.07
Contract Administration &
Inspection $69,000 $45,000
Additional City Manager Authority $50,000 $0
Total $616,820 $519,158.07
The project involved replacing two existing standby generators that have reached the end of their service lives; one at the City of Redding’s (City) Stillwater Wastewater Treatment Plant and the other is at the Clear Creek Wastewater Treatment Plant. The City furnished both of the new generators for installation by the contractor for this project. In general, the work at both sites included removal and salvage of the existing diesel engine generators, modifications to existing concrete pads to accommodate the new generators, replacement of conductors through existing conduits, replacement of diesel fuel piping for use of existing diesel fuel tanks, and installation of the new City-furnished generators.

Environmental Review
This is not a project defined under the California Environmental Quality Act (CEQA), and no further action is required. Staff has determined that the project qualifies as categorically exempt from environmental review under CEQA Guidelines Section 15301 – Existing Facilities.

Council Priority/City Manager Goals
• This agenda item is a routine operational item.

Attachments
^Location Map
Previous Staff Report
Packet Pg. 171

CANYON RD
PIT RD

DBANK RD

METZ RD

COPPER DR

RANCHETTE DR

REDDING RANCHERIA RD

PROSPECTORS RD
HWY 273 SILVERADO DR

VALLEY VIEW DR

REDBANK RD

PERRON LN

EASTSIDE RD
HWY 273

CLEAR CREEK WWTP

CLEAR CREEK

SACRAMENTO RIVER

DERSCH RD

RIVER VALLEY RD

ALDEA CT STONEY DRDURYEE LN DRAKE DR MT VIEW DR CURTIS LN

AIRPORT RD RITA RIVER RD

RIATA DR

SACRAMENTO RIVER

CHARSMA CT TREVA LN

QUAIL CREEK RD

BARN OWL DR TURTLE LN

STILLWATER WWTP AIRPORT RD

CITY OF REDDING

LOCATION MAP

WASTEWATER TREATMENT

PUBLIC WORKS PLANT GENERATORS

DEPARTMENT

LOCATION

PROJECT

STILLWATER WASTEWATER TREATMENT PLANT LOCATION

CLEAR CREEK WASTEWATER TREATMENT PLANT LOCATION

LOCATION

PROJECT
Packet Pg. 172 Attachment: ^Location Map (4.11(d)--Project Acceptance, Bid Schedule No. 5367, WWTP Generators) GI " Y F

CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: June 6, 2023 FROM: Chuck Aukland, Public
ITEM NO. 4. 11( d) Works Director
APPROVED BY***
n ..._
s. N,.
ukl n l, H' ciblic Wc aks L' reGt ' S(? 3/ 2423 ry ip} in, C"i ana 5, i30/ 2423 [email protected]. ca.us btippin@cityofredding. org
SUBJECT: 4. 11( d)-- Award Bid Schedule No. 5367 ( Job Order No. 2692) Wastewater Treatment Plant Generators Project
Recommendation
Authorize the following actions relative to Bid Schedule No. 5367 ( Job No. 2692) Wastewater Treatment Plant Generators Project:
1) Award to Stewart Engineering, Inc., in the amount of$366, 820; 2) Approve an additional $ 69, 000 to cover the cost of administration and inspection fees; and$ 91, 000 for project development costs;
3) Approve $ 40, 000 to provide construction contingency funding; 4) Authorize the City Manager to approve additional increases in either the construction management or construction contingency amounts up to a total of$50, 000; and 5) Find that the Project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 — Existing Facilities.

Fiscal Impact
The Wastewater Treatment Plant Generator Project ( Project) is being funded by the Wastewater Utility Fund. Funding the project will not impact other activities or projects.

Cost Summar
Item Estimated
Pro' ect Develo ment Costs 91, 000
Construction Contract-- Contin enc 406, 820
Contract Administration, Tns ection, Testin $ 69, 000
Additional Cit Mana er Authorit 50,000
Total Pro' ect Costs 616,820
Project cost components are estimates and some shifting of the project development, construction management, and construction contingency funds may be necessary to balance the project within the approved budget.

Packet Pg. 173 Attachment: Previous Staff Report (4.11(d)--Project Acceptance, Bid Schedule No. 5367, WWTP Generators) Report to Redding City Council May 30, 2023
Re: 4.11( d)-- Award BS No. 5367 Wastewater Treatment Plant Generators Page 2 Alter native Actzon
The City Council ( Council) may choose not to award the bid for the project and provide staff with alternate direction. If the project is not awarded, then there will be a greater risk of an outage at the wastewater treatment plants that could lead to wastewater overflows and a decrease in reliability for City of Redding (City) customers.

Background/Analysis
Attached is a tabulation of bids received and opened on May 9, 2023, far the project. The low bid in the ainount of $366, 820 was received from Stewart Engineering, Inc., of Redding, California. The engineer' s estimate was $ 312, 920. Total project development costs for this project are estimated to be $ 91, 000. Project development costs include engineering, surveying, right-of-way, environmental, consultant services, and permit fees.

The project will replace two existing standby generators that have reached the end of their service lives - one at the City' s Stillwater Wastewater Treatment Plant and the other is at the Clear Creek Wastewater Treatment Plant. The City will furnish both of the new generators for installation by the contractor for this project. In general, the work at both sites will include removal and salvage of the existing diesel engine generators, modifications to existing concrete pads to accommodate the new generators, replacement of conductors through existing conduits, replacement of diesel fuel piping for use of existing diesel fuel tanks, and installation of the new City furnished generators.

EnviNonmental Review
Staff has determined that the project qualifies as categorically exempt from environmental review under California Environmental Quality Act Guidelines Section 15301 — Existing Facilities. Class 1 exemptions include the operation, repair, maintenance, or minor alteration of existing facilities, structures, or equipment involving negligible or no expansion of use. The City will replace existing equipment in order to provide continued service in the event of an outage or emergency, and the project will not result in expansion of use. The project area has been reviewed for sensitive resources and will not have an effect on biological or cultural resources such as threatened or endangered species or their habitats, sensitive vegetation communities, tribal lands, or tribal cultural resources. The project has no potential to have a significant effect on the environment. No further action is required.

Council Pr iority/ City Manager Goals
This agenda item is a routine operational item.

Attachments
Location Map
Bid Tabulation
Notice of Exemption
Packet Pg. 174 Attachment: Previous Staff Report (4.11(d)--Project Acceptance, Bid Schedule No. 5367, WWTP Generators) i
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PUBLIC WORKS PLANT GENERATORS
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Packet Pg. 175 Attachment: Previous Staff Report (4.11(d)--Project Acceptance, Bid Schedule No. 5367, WWTP Generators) BID TABULATION FOR:

Wastewater Treatment Plant Generators
Bid Schedule No.: 5367
ENGINEER' S EST Stewart En ineerin Inc J. W. Construction 5/ 4/ 2023 U N IT U N IT U N IT

ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE TOTAL PRICE TOTA 1 Water Pollution Control LS 1 10, 000. 00 $ 10, 000. 00 $ 5, 060. 00 $ 5, 060. 00 $ 25, 000. 00 $ 25, 000. 00 2 Stillwater Wastewater Treatment Plant S 1 129, 044. 00 $ 129, 044. 00 $ 156, 400. 00 $ 156, 400. 00 $ 176, 805. 00 $ 176, 805. 00 3 Clear Creek Wastewater Treatment Plant LS 1 173, 876. 00 $ 173, 876. 00 $ 205, 360. 00 $ 205, 360. 00 $ 196, 805. 00 $ 196, 805. 00 TOTAL - CONTRACT ITEMS 312, 920. 00 366, 820. 00 398,610. 00

BID TABULATION FOR:

Wastewater Treatment Plant Generators
Bid Schedule No.: 5367
Cal Electro Inc Averae
5/ 4/ 2023
U
N IT
UN IT
ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE 1 Water Pollution Control LS 1 1, 500. 00 $ 1, 500. 00 10, 520. 00 2 Stillwater Wastewater Treatment Plant S 1 $ 230, 000. 00 $ 230, 000. 00 187, 735. 00 3 Clear Creek Wastewater Treatment Plant LS 1 $ 215, 000. 00 $ 215, 000. 00 205, 721. 67 Average Bid
TOTAL - CONTRACT ITEMS 446, 500. 00 403, 976. 67
Page2of2 Packet Pg. 177 Attachment: Previous Staff Report (4.11(d)--Project Acceptance, Bid Schedule No. 5367, WWTP

NQTICE OF XEMPTION
To: Office afPlanning and Research FxoM: City of Redding 1400 Tenth Street, Room 121 Public Works D partment
Sacramento, CA 95814 777 Cypress Avenue
Redding, CA 96001
X Shasta Caunty Clerk
County of Shasta
P. O. ax 990880, 1643 Market Str et
Redding, CA 96099- 0$$ 0
Praject Title: Wastewater Treatmei7t Plant Generators Pro ect, J. O:# 2692- 10 Pra, ect Lacation— Specific: 2220 Metz Road and 6475 Airport Road Project Location— Citys Reddin Project Lacation— Caunty: Shasta Descript on of Project: The Citv of Reddin wi[I replace the existin standby generatars at the Clear Creek and Stillwater Wastewater Treatment Plants. Work will include the removal and replacernent of existi l diesel engine standbv enerators modificatiozls to existin cancrete pads replaceanent af conductars throu h existin conduits and replacement of abave raund diesel fuel pip for use of existin diesel fuel tanks A11 work will occur witl in the City facilities.

Nanr e of Public Agency Appraving Projectc Gity of Redding Name afPerson or Agency Carr ing Qut Pro, ect: Kurt Maire, Proiect En ineer Exempt Status: ( claeck one)
Ministerial [ Seetion 21084( b)( 1};, 15268]
O Declared Emergency [ Section 21(? 80( b)( 3}; 15269( a)] Emergency Praject [ Sectron 21Q80( b)( 4); 15269( b)]
Statutoi-y Exemptions. State code number:

Comman Sense Exemption ( This project does not fall within an exempt class, but it can be seen with certainry that there is ntr poss`rbility that the activity may have a significant effect on the environment{ 14 CCR 15061[ b][ 3]).

Categorieal Exelnption. State type and section number: Section 153Q1. Ex sting Facilities No exceptions apply that would bar the use of a categorical exerxaption( PRD 21Q84 and 14 CCR 15300. 2).

Reasons why project is exempt: Class 1 exelnptions ii clude the operation, repair maintenance ar minor alteration af existin facilities, sfiructures, or equipment invalvin ne li ible or no expansion af use The Citv will replace existing equipmeilt ir1 order to provide continued service in the event of an outage or emergency and the project will not result in exnansion of use. The project area has been reviewed far sensitive resources and will nat have an effect on biolo ical or cultural resources such as threatened or endan ered species or their habztats sensitive ve etation comrnunities tribal lands, 4r tribal cultural resources. The pro,ject has no potential to have a si nificant effect c n the environment Lead Agency Contact Person: Alnber Kelley Telephone: 530. 225. 404& If Filed byApplicant:

1. Attach certified document af exempt an finding.
2, Has a notice ofexemption been filed by tlle public agency appraving the project? a Yes o No Signature: Date: "
Title; Environlnental Cc m i
iance Man er
0 Signed by Lead Agency Date received for filing at OPR:

D Signed by Appli ant
C: t; t f1 ! C7[:; cev. 6?() 3
Packet Pg. 178 Attachment: Previous Staff Report (4.11(d)--Project Acceptance, Bid Schedule No. 5367, WWTP Generators)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to the License Agreement with the United States of America, Department of Energy, Western Area Power Administration at the southwest end of Mercedes Lane:
(1) Approve and authorize the Mayor, or designee, to execute the License Agreement; and (2) Find that this action is categorically exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 – Existing Facilities.

Fiscal Impact
Execution of the License Agreement will have no fiscal impact to the City of Redding (City).

Alternative Action
The City Council (Council) may choose not to approve the License Agreement and provide alternate direction to staff.

Background/Analysis
On April 23, 1990, the City entered into an agreement with the United States of America, Department of Energy, Western Area Power Administration (WAPA) and James G. Gianulias (Developer) (C-264) to allow the construction, reconstruction, operation and maintenance of street improvements (Mercedes Lane) and utility lines through a WAPA easement and under the Keswick-Cottonwood No. 230-kV transmission line for a period of 25 years. Mercedes Lane was subsequently constructed and is currently being maintained by the City.

MEETING DATE: January 16, 2024
ITEM NO. 4.11(e)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(e)--Approve License Agreement with the Western Area Power Administration at Mercedes Lane
Michael Webb, Public Works
Director
Packet Pg. 179
Report to Redding City Council January 11, 2024
Re: 4.11(e)--Approve Western Power Authority License Agreement Page 2 The agreement expired in 2015. Staff has negotiated the subject License Agreement to renew the agreement with WAPA. WAPA is willing enter into a perpetual license agreement with the City if street improvements and utilities are maintained and operated in conformance with the original agreement. Future relocations, changes or upgrades will require additional concurrence with WAPA.

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

Environmental Review
Staff has reviewed the action and determined that this action is categorically exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 - Existing Facilities. Right of way improvements are not proposed and the activity will result in no expansion of use. The property has no underlying value for sensitive environmental resources, and there will be no potential for significant effects on the environment.

Council Priority/City Manager Goals
This agenda item is a routine operational item.

Attachments
^Vicinity Map
^License Renewal Agreement
^Record Drawing
^Notice of Exemption
Original Agreement (C-264)
Packet Pg. 180
Packet Pg. 181
Attachment: ^Vicinity Map (4.11(e)--Approve Western Power Authority License Agreement) Packet Pg. 182
Attachment: ^License Renewal Agreement (4.11(e)--Approve Western Power Authority License Agreement) Packet Pg. 183
Attachment: ^License Renewal Agreement (4.11(e)--Approve Western Power Authority License Agreement) Packet Pg. 184
Attachment: ^License Renewal Agreement (4.11(e)--Approve Western Power Authority License Agreement) Packet Pg. 185
Attachment: ^License Renewal Agreement (4.11(e)--Approve Western Power Authority License Agreement) Packet Pg. 186
Attachment: ^License Renewal Agreement (4.11(e)--Approve Western Power Authority License Agreement) Packet Pg. 187
Attachment: ^Record Drawing (4.11(e)--Approve Western Power Authority License Agreement) Packet Pg. 188
Attachment: ^Notice of Exemption (4.11(e)--Approve Western Power Authority License Agreement) Packet Pg. 189
Attachment: Original Agreement (C-264) (4.11(e)--Approve Western Power Authority License Agreement) Packet Pg. 190
Attachment: Original Agreement (C-264) (4.11(e)--Approve Western Power Authority License Agreement) Packet Pg. 191
Attachment: Original Agreement (C-264) (4.11(e)--Approve Western Power Authority License Agreement)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Bid Schedule No. 5424, Street Striping and Pavement Marking Services Contract:
(1) Award to Specialized Pavement Marking, LLC, in the amount of $244,050; (2) Find that the action is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 – Existing Facilities; and
(3) Authorize the Purchasing Officer to extend the contract, if mutually agreeable, with all prices, terms, and conditions remaining the same, for two additional one-year periods.

Fiscal Impact
Sufficient streets maintenance funds have been budgeted for Fiscal Year 2023-24 to pay for this contract.

Alternative Action
The City Council (Council) may choose not to award the bid for the Streets Striping and Pavement Services Contract and direct Streets Division maintenance crews to continue repairing/refreshing striping and pavement markings when workload allows.

Background/Analysis
The City of Redding (City) has faded, worn or missing pavement striping and markings in various locations in the community, particularly on heavily traveled or older roadways. The Streets Division crews repair/refresh highly prioritized sections as time allows but cannot manage the workload with current staffing. Other defect locations brought to the City’s attention or identified by Streets staff are consolidated into various public works capital roadway projects and put out to public bid as time, budget and relative location allows.

MEETING DATE: January 16, 2024
ITEM NO. 4.11(f)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(f)--Award Bid Schedule No. 5424 Street Striping and Pavement Marking Services Contract
Michael Webb, Public Works
Director
Packet Pg. 192
Report to Redding City Council January 11, 2024
Re: 4.11(f)--Award Bid Schedule 5424 - Street Striping Services Contract Page 2 The Streets department has issued an annual contract for pavement striping and markings continuously for approximately the last 15 years consecutively. Due to rising costs of labor and material, this is the first year that the contract amount has exceeded $200,000 and thus requiring Council award. The proposed term of the contract is for one year with an option to renew for two additional one-year periods, if mutually agreeable.

Attached is the Bid Tabulation for bids received December 1, 2023. The City solicited five bid opportunity’s to potential vendors along with distributing to three north state builders’ exchanges, in addition to posting the bid on the City’s website and advertising in the Record Searchlight. The sole and low bid in the amount of $244,050 was received from Specialized Pavement Marking, LLC of Tualatin, Oregon. The engineer’s estimate was $150,000.

Environmental Review
Staff has determined that the project qualifies as categorically exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 - Existing Facilities. Class 1 exemptions include operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing facilities, structures, or topographical features involving negligible or no expansion of use. The pavement striping and marking services will be conducted within the existing right of way and will support Streets effort to maintain and replace pavement striping for public safety. The work will occur in previously paved areas and will result in no expansion of use. The project has no potential to have a significant effect on the environment.

Council Priority/City Manager Goals
• This agenda item is a routine operation item.

Attachments
^Location Map
^5424 Striping Bid Tab
NOE Pavement Striping and Marking Contract
Packet Pg. 193

STREET STRIPING AND PAVEMENT

LOCATION MAP

CITY OF REDDING

PUBLIC WORKS

DEPARTMENT
NTS

MARKING SERVICES CONTRACT
Packet Pg. 194 Attachment: ^Location Map (4.11(f)--Award Bid Schedule 5424 - Street Striping Services Contract)

CITY OF REDDING
PURCHASING DIVISION - TABULATION OF BIDSStreet Striping & Pavement Marking Services BID SCHEDULE NO. DATE OF OPENING
5424 Friday, December 1, 2023
C. Buchanan TIME OF OPENINGM. Webb 3:00 P.M.

Item Est 1 YR Qty U.M. Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price 1 6" Solid White or Skip 3,000 LF 1.05 $3,150.00 $0.00 $0.002 8" Solid White or Skip 1,000 LF 1.70 $1,700.00 $0.00 $0.00 New 120 - Mil Thermoplastic
3 12" Thermo Cross Walk / Bar 1,000 SF 7.50 $7,500.00 $0.00 $0.00 4 All Thermoplastic Legends 500 SF 14.00 $7,000.00 $0.00 $0.005 Hot Tape Bicycle Legend / H.C. 10 EA 350.00 $3,500.00 $0.00 $0.006 12" Paint Crosswalk / Bar 100 SF 4.00 $400.00 $0.00 $0.007 All Painted Legends 100 SF 6.00 $600.00 $0.00 $0.00 Refresh 60 - Mil Thermoplastic
8 6" Solid White or Skip 41,000 LF 1.00 $41,000.00 $0.00 $0.009 8" Solid White or Skip 5,000 LF 1.60 $8,000.00 $0.00 $0.00 Refresh 90 - Mil Thermoplastic
10 12" Thermo Cross Walk / Bar 5,000 SF 7.50 $37,500.00 $0.00 $0.0011 All Thermoplastic Legends 3,000 SF 14.00 $42,000.00 $0.00 $0.0012 Hot Tape Bicycle Legend / H.C. 10 EA 350.00 $3,500.00 $0.00 $0.0013 12" Paint Crosswalk / Bar 200 SF 4.00 $800.00 $0.00 $0.0014 All Painted Legends 200 SF 6.00 $1,200.00 $0.00 $0.00 New 90 - Mil Thermoplastic
15 6" Strip Removed 1,000 LF 0.70 $700.00 $0.00 $0.0016 Square Foot Removal 3,000 SF 4.50 $13,500.00 $0.00 $0.0017 Install Reflectors 10,000 EA 6.50 $65,000.00 $0.00 $0.0018 Remove Pavement Markers 2,000 EA 3.50 $7,000.00 $0.00 $0.00 $244,050.00 $0.00 $0.00
Specialized Pavement
Marking, LLC

GRAND TOTAL
Description
New 90 - Mil Thermoplastic
M. Kempley - Purchasing
Packet Pg. 195
Attachment: ^5424 Striping Bid Tab (4.11(f)--Award Bid Schedule 5424 - Street Striping Services Contract) Packet Pg. 196
Attachment: NOE Pavement Striping and Marking Contract (4.11(f)--Award Bid Schedule 5424 - Street Striping Services Contract)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve the Mayor’s recommendation to reappoint Kelly Kafel to the City’s Administrative Hearings Board to serve an additional four-year term effective February 1, 2024, and expiring January 31, 2028.

Fiscal Impact
There is no impact to the General Fund.

Alternative Action
The City Council could choose not to approve the Mayor’s recommendation.

Background/Analysis
The City of Redding (City) established a three-person Administrative Hearings Board on November 15, 2005, tasked with administration enforcement of provisions of the Redding Municipal Code. The membership of the board shall include persons with professional experience in law, law enforcement, dispute resolution, administrative processes, engineering, general contracting, subcontracting, or real estate, and must be a resident of the City, own a business, or be employed within the city limits of Redding.

Board Member Kelly Kafel’s term expires on January 31, 2024, therefore one scheduled vacancy exists. Ms. Kafel has expressed interest in continuing to serve on the City’s Administrative Hearings Board and is eligible to serve a second four-year term. If approved, her new term will begin February 1, 2024, and end January 31, 2028.

MEETING DATE: January 16, 2024
ITEM NO. 5.1
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 5.1--Consider reappointment to the City of Redding (City) Administrative Hearings Board.

Tenessa Audette, Mayor
Packet Pg. 197
Report to Redding City Council January 11, 2024
Re: 5.1--Reappointment to Administrative Hearings Board Page 2 Environmental Review
This is not project as a defined under the California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
• This agenda item is a routine operational item.

Packet Pg. 198

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Information only.

Fiscal Impact
There is no fiscal impact to accepting the report.

Background/Analysis
Following the annual reorganization of the City Council (Council), the Council liaison assignments are reviewed and modified. Attached for the Council’s information is the updated list of Departmental, Commission, Committee, and Agency liaison assignments.

Appointments made by the Mayor’s City Selection Committee are contingent upon the decision of the Committee at its annual meeting.

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

Council Priority/City Manager Goals
• This is routine operational item occurring on an annual basis.

Attachments
^2024 Liaison List-by Agency
^2024 Liaison List by Member
MEETING DATE: January 16, 2024
ITEM NO. 9A
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9A--City Council Liaison Assignments for Calendar Year 2024.

Tenessa Audette, Mayor
Packet Pg. 199
2024 CITY OF REDDING CITY COUNCIL

AGENCY, COMMISSION, COMMITTEE, AND DEPARTMENTAL LIAISON REPRESENTATIVES By Agency
CITY DEPARTMENTS Liaison
Airport Mezzano
City Clerk Dacquisto
City Treasurer-Finance Winter
Community Services Munns
Development Services Audette
Electric Utility (Includes outside energy-related agencies) Winter Fire Audette
Housing Munns
Information Technology Dacquisto
Personnel Mezzano
Police Munns
Public Works Winter
CITY COMMISSIONS AND COMMITTEES Liaison Alternate
Audit Committee (Mayor/Vice Mayor) Audette Munns
Winter
Community Development Advisory Committee Audette
Community Services Advisory Commission Munns
Native American Liaison Winter
Planning Commission Mezzano
Shasta Public Library Citizens' Advisory Committee Dacquisto OTHER AGENCIES Representative Alternate
Downtown Collaborative Winter Mezzano
Dacquisto
Economic Development Corporation Audette Winter
Enterprise Anderson Groundwater Sustainability Agency (EAGSA) Audette Dacquisto League of California Cities Munns Audette
NSVIRWM Governance Board (COR has an Alternate to the Board) N/A Audette Redding Area Water Council - Policy Advisory Committee Audette N/A Public Access TV (Shasta County Arts Council) Winter N/A Shasta County Community Action Board Mezzano N/A
Shasta County Remote Access Network Advisory (RAN) Mezzano N/A Youth Options Shasta (Formerly Youth Violence Prevention Council of Shasta County)
Munns N/A
**CITY SELECTION COMMITTEE Representative Alternate
Air Pollution Control Board (APCB) Dacquisto Munns
Mezzano
Airport Land Use Commission (ALUC) Dacquisto Mezzano
Local Agency Formation Commission (LAFCO) Audette N/A
Superior California Economic Development District (SCEDD) Director N/A Shasta Regional Transportation Agency (SRTA) For COR Audette Winter For RABA TBD TBD
Rev: 1/9/2024
Packet Pg. 200 Attachment: ^2024 Liaison List-by Agency (9A--City Council Liaison Assignments for Calendar Year 2024) 2024 CITY OF REDDING CITY COUNCIL AGENCY, COMMISSION, COMMITTEE, AND

DEPARTMENTAL LIAISON REPRESENTATIVES

BY COUNCIL MEMBER
All Five City Council Members serve on the following: Redding Area Bus Authority; Redding Capital Services; Redding Housing Authority; Redding Joint Powers Financing Authority; Redding Municipal Library Board; and Successor Agency to the Redding Redevelopment Agency.

Council Member Michael Dacquisto Council Member Mark Mezzano City Clerk Personnel
Information Technology Airports
Shasta Public Library Citizens’ Advisory Committee Planning Commission Air Pollution Control Board (APCB) Shasta County Remote Access Network Advisory (RAN) Downtown Collaborative Air Pollution Control Board (APCB) Airport Land Use Commission (ALUC) Shasta County Community Action Board

ALTERNATE ALTERNATE
Enterprise Anderson Groundwater Sustainability Agency
(EAGSA)
Downtown Collaborative
Airport Land Use Commission (ALUC)
Mayor– Tenessa Audette Vice-Mayor - Julie Winter
Audit Committee (Mayor/Vice Mayor) Audit Committee (Mayor/Vice Mayor) Development Services Electric Utility (Includes energy-related agencies) Fire City Treasurer - Finance
Shasta Regional Transportation Agency (SRTA) For COR Public Works Economic Development Corporation Downtown Collaborative Enterprise Anderson Groundwater Sustainability Agency
(EAGSA)
Public Access TV (Shasta County Arts Council)
Local Agency Formation Commission (LAFCO) Native American Liaison Redding Area Water Council – Policy Advisory Committee
NSVIRWM Governance Board (COR has an Alternate to the
Board)
Community Development Advisory Committee ALTERNATE
Economic Development Corporation
ALTERNATE Shasta Regional Transportation Agency (SRTA) For COR League of California Cities
Council Member Jack Munns
Community Services
Housing
Police
Community Services Advisory Commission
Youth Options Shasta (Formerly Youth Violence Prevention Council of Shasta County)
NOTE: The SRTA RABA Representative and Alternate to be
selected at RABA’s next meeting (must be from COR).

League of California Cities

ALTERNATE
Air Pollution Control Board (APCB) NOTE: **Appointments made by the Mayor’s City Audit Committee (Mayor/Vice Mayor) Selection Committee are tentative until after their meeting in mid-January. Rev: 01/09/24
Packet Pg. 201 Attachment: ^2024 Liaison List by Member (9A--City Council Liaison Assignments for Calendar Year 2024)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve the Audit Committee’s recommendation to accept the Statement on Auditing Standards AU-C 260 Letter and the draft copy of the Single Audit Reports for the year ended June 30, 2023.

Fiscal Impact
There is no fiscal impact associated with this item.

Alternative Action
The City Council (Council) could reject the Statement on Auditing Standards AU-C 260 Letter and the draft copy of the Single Audit Reports for the year ended June 30, 2023, and provide additional direction to the Audit Committee and/or staff.

Background/Analysis
Attached is a copy of the AU-C 260 Letter to the Council and a draft copy of the Single Audit Reports for the year ended June 30, 2023. The Audit Committee met on January 4, 2024, to review and discuss the reports. The Audit Committee recommended that the AU-C 260 Letter and the draft of the Single Audit Reports be brought to the Council for acceptance.

The AU-C 260 Letter is commonly known as the ‘The Auditor’s Communication with those Charged with Governance’ and provides the auditors the forum to share their perspective on accounting policies, estimates, and disclosures used in the preparation of the financial statements and whether there were any difficulties, disagreements, or other findings in performing the audit.

The auditors found no problems or issues to convey.

MEETING DATE: January 16, 2024
ITEM NO. 9B
FROM:
***APPROVED BY***
[email protected], [email protected] [email protected] SUBJECT: 9B--Consider Reports from Independent Auditors for the year ended June 30, 2023.

Audit Committee,, Julie
Winter, Vice Mayor, Tenessa
Audette, Mayor
Packet Pg. 202
Report to Redding City Council January 11, 2024
Re: 9B--Reports from Independent Auditors for the year ended June 30, 2023 Page 2 The Single Audit Reports pertain to the compliance and internal control in the expenditure of federal awards and the collection and expenditure of passenger facility charges. No findings or questioned costs were noted in the reports.

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

Council Priority/City Manager Goals
This is a routine operational item occurring on an annual basis.

Attachments
2023 City of Redding Single Audit Report - FINAL
Redding Governance Communication AU-C-260 Letter
Packet Pg. 203

CITY OF REDDING

SINGLE AUDIT REPORT, PASSENGER

FACILITY CHARGES PROGRAM, AND
INDEPENDENT AUDITORS’ REPORTS
YEAR ENDED JUNE 30, 2023
Packet Pg. 204 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
SINGLE AUDIT:

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 1
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR

FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER

COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 3
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 6
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9
SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 10
PASSENGER FACILITY CHARGES:

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH

REQUIREMENTS APPLICABLE TO THE PASSENGER FACILITY CHARGE

PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE AND
REPORT ON THE SCHEDULE OF PASSENGER FACILITY CHARGES 12

SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND
EXPENDED AND INTEREST COLLECTED 15

NOTES TO THE SCHEDULE OF PASSENGER FACILITY CHARGES
COLLECTED AND EXPENDED AND INTEREST COLLECTED 17
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 18
Packet Pg. 205 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023) CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Redding (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 13, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Packet Pg. 206 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023) Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
(2)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control over financial reporting and the results of that testing and not to provide an opinion on the effectiveness of the entity’s internal control and compliance. This communication is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control over financial reporting. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Roseville, California
December 13, 2023
Packet Pg. 207 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023) CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(3)
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH

MAJOR FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER

COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES

OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Redding’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.

Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

Packet Pg. 208 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023) Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
(4)
Auditors’ Responsibility for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding City of Redding’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance.

Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Packet Pg. 209 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023) Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
(5)
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 13, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

CliftonLarsonAllen LLP
Roseville, California
December 13, 2023
Packet Pg. 210 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Schedule of Expenditures of Federal Awards. (6)
Federal
Assistance Grant
Federal Grantor/Pass-Through Grantor/ Listing Identification Federal Passed Through Program or Cluster Title Number Number Expenditures to Subrecipients U. S. Department of Housing and Urban Development
Direct Program:

CDBG - Entitlement Grants Cluster:

Community Development Block Grant 14.218 B-19-MC 060-033 $ 10,000 19,754 $ Community Development Block Grant 14.218 B-20-MC 060-033 - 122,736 Community Development Block Grant 14.218 B-21-MC 060-033 110,276 430,477 COVID-19 Community Development Block Grant - CARES 14.218 B-20-MCW 060033 - 169,981 Community Development Block Grant 14.218 B-22-MC 060-033 44,550 274,387 Subtotal CDBG Entitlement Grants Cluster 164,826 1,017,335 Passed through State of California:

Community Development Block Grant 14.228 21-DRMHP-21008 - 8,219,525 Subtotal Assistance Listing Number 14.228 - 8,219,525
Passed through Shasta County:

Emergency Solutions Grant Program:

Emergency Solutions Grant Program - CV 14.231 20-ESGCV1 - 27 Emergency Solutions Grant Program - CV 14.231 20-ESGCV1 - 34,088 Subtotal Assistance Listing Number 14.231 - 34,115
HOME Investment Partnership 14.239 M18-MC060238 - 21,433 HOME Investment Partnership 14.239 M19-MC060238 - 10,230 HOME Investment Partnership 14.239 M20-MC060238 - 80,612 HOME Investment Partnership 14.239 M21-MC060238 - 276,971 HOME Investment Partnership 14.239 M22-MC060238 - 338,329 HOME Investment Partnership 14.239 M21-MP060238 - 764,665 Subtotal Assistance Listing Number 14.239 - 1,492,240
Housing Vouchers Cluster:

Section 8 Housing Choice Vouchers 14.871 CA 106 - 12,445,363 Emergency Housing Vouchers (EHV) 14.871 CA 106 - 546,875 Subtotal Assistance Listing Number 14.871 - 12,992,238
Mainstream Vouchers Cluster:

Mainstream Vouchers 14.879 CA 106 - 542,320
Subtotal Housing Vouchers Cluster - 13,534,558
Family Self-Sufficiency (FSS) Program:

FSS Coordinator 14.896 FSS22CA4181 - 36,892
FSS Coordinator 14.896 FSS23CA5065 - 24,923
Subtotal Assistance Listing Number 14.896 - 61,815
Total U.S. Department of Housing and Urban Development $ 164,826 24,359,588 $ U.S. Department of Justice
Direct Programs:

COVID-19 - Coronavirus Emergency Supplemental Funding Program 16.034 2020-VD-BX-0874 21,472 $ - $ Bulletproof Vest Partnership Program 2022 16.607 19097427 11,973 - Edward Byrne Memorial Justice Assistance Grant 16.738 15PBJA-21-GG-01252-JAGX 10,268 - Edward Byrne Memorial Justice Assistance Grant 16.738 15PBJA-22-GG-02533-JAGX 1,891 - Subtotal Assistance Listing Number 16.738 - 12,159
Asset Seizure Program 16.922 N/A - 53,450
Total U.S. Department of Justice $ - 99,054 $
U.S. Department of Transportation
Direct Programs:

Airport Improvement Program:

Runway 16 Blast Pad Design/Taxi 20.106 03-06-0194-52 3,372 $ - $ CRSSA 20.106 3-06-0194-055-2021 79,014 -
CRSSA - Benton 20.106 3-06-0308-024-2021 2,100 -
COVID-19 Airport Rescue Grant - American Rescue Plan Act (ARP) 20.106 3-06-0194-058-2021 1,033,510 - Airport Layout Plan Drawing Set Update 20.106 3-06-0308-023-2021 38,880 - Runway Pavement Preservation / MAGVAR (Slurry Seal) Phase 1 20.106 3-06-0308-025-2021 1,309 - Airport Drainage Study 20.106 3-06-0308-026-2021 171,843 - Reconstruct Terminal / Airport Loop Access Road (Woodrum Circle) - Phase 2 20.106 3-06-0194-054-2021 42,411 -
Terminal Loop Construction Phase 2 20.106 3-06-0194-060-2022 2,540,727 - Runway 16/34 MAGVAR Design Phase 2 20.106 3-06-0194-061-2022 551,000 - ARFF Foam Kit 20.106 3-06-0194-062-2023 32,568 -
Airport Master Plan Update - Muni 20.106 3-06-0194-063-2022 316,828 - Terminal Loop Construction Phase 2 Add Alt 2 20.106 3-06-0194-065-2023 784,384 - Runway Pavement Preservation / MAGVAR (Slurry Seal) Construction 20.106 3-06-0308-028-2022 340,906 - Subtotal Assistance Listing Number 20.106 - 5,938,852
Packet Pg. 211 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Schedule of Expenditures of Federal Awards. (7)
Federal
Assistance Grant
Federal Grantor/Pass-Through Grantor/ Listing Identification Federal Passed Through Program or Cluster Title Number Number Expenditures to Subrecipients U.S. Department of Transportation
Passed through State Department of Transportation:

Highway Planning and Construction Cluster:

Keswick Dam Emergency Repair 20.205 HBRR 5068-32 25,686 $ - $ FHBP study 5068-32 Sharon / ACID 20.205 HBRR 5068-34 48,662 - FHBP study 5068-34 Sacramento / Olney 20.205 HBRR 5068-35 46,189 - FHBP study 5068-35 Eastside / Canyon 20.205 HBRR 5068-36 405,745 - FHBP study 5068-36 Eastside Olney 20.205 HBRR 5068-37 54,402 - FHBP study 5068-37 Canyon / ACID 20.205 HBRR 5068-39 55,043 - FHBP study 5068-39 Girvan / Olney 20.205 HBRR 5068-45 183,892 - FHBP study 5068-45 Old Alturas / Churn Creek 20.205 HSIP6-02-001 5068-51 155,734 - Shoulder widening on Old Oregon Trail for recovery area and bike lanes 20.205 HSIPL-5068 (57) 7,612 - Churn Creek/Maraglia Safety Improvements 20.205 HSIPL-5068 (62) 1,072,245 - Enhanced Pedestrian Crossings 20.205 BPMP-5068 (060) 7,446 - Bridge Preventative Maintenance 20.205 RPSTPL-5068 (061) 201,814 - Downtown to Turtle Bay Non-Motorized Improvements 20.205 STPLR-7500 (254) 293,941 - Shasta Street Railroad Crossing Project 20.205 STPLR-7500 (225) 771,246 - Girvan Road Railroad Crossing Project 20.205 HSIPL-5068 (64) 214,208 - Passed through Shasta Regional Transportation Agency:

Bechelli-Loma Vista ATP 20.205 HSIPL-5068(59) 6,312,155 - Subtotal Highway Planning and Construction Cluster - 9,856,020 Direct Programs:

Federal Transit Cluster:

Federal Transit—Formula Grants 20.507 CA-90-Z278 103,058 - Federal Transit—Formula Grants 20.507 2021-109 399,638 - Federal Transit—Formula Grants 20.507 2022-109 2,106,776 - Subtotal Assistance Listing Number 20.507 - 2,609,472
Bus and Bus Facilities Formula Program 20.526 2020-061 113,589 - Bus and Bus Facilities Formula Program 20.526 2021-107 51,381 - Subtotal Assistance Listing Number 20.526 - 164,970
Subtotal Federal Transit Cluster - 2,774,442
Passed through California Office of Traffic Safety:

Highway Safety Cluster:

Selective Traffic Enforcement Program (STEP) 20.600 PT22061 4,818 - Selective Traffic Enforcement Program (STEP) 20.600 PT23150 28,173 - Subtotal Assistance Listing Number 20.600 - 32,991
Minimum Penalties for Repeat Offenders for Driving
While Intoxicated Program:

Selective Traffic Enforcement Program (STEP) 20.608 PT22061 27,943 - Selective Traffic Enforcement Program (STEP) 20.608 PT23150 40,965 - Subtotal Assistance Listing Number 20.608 - 68,908
Total U.S. Department of Transportation $ - 18,671,213 $ U.S. Department of Treasury
Direct Programs:

Coronavirus State & Local Fiscal Recovery Funds:

COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 2,445,329 $ - $ COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 639,973 - COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 111,124 - COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 3,284 - COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 8,023 - COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 666,830 - Subtotal Assistance Listing Number 21.027 - Direct - 3,874,563 Passed through Shasta County:

COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 AGR.CAO.COR.SS.2324.FEX 56,824 - Subtotal Assistance Listing Number 21.027 - 3,931,387
Total U.S. Department of Treasury $ - 3,931,387 $
Packet Pg. 212 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Schedule of Expenditures of Federal Awards. (8)
Federal
Assistance Grant
Federal Grantor/Pass-Through Grantor/ Listing Identification Federal Passed Through Program or Cluster Title Number Number Expenditures to Subrecipients U.S. Department of Homeland Security
Passed through the California Natural Resources Agency - Division of Boating and Waterways:

Boating Safety 97.011 N/A 31,005 $ - $
Boating Safety 97.011 C8966331 9,875 -
Subtotal Direct Assistance Listing Number 97.011 - 40,880 Direct Programs:

Disaster Grants - Public Assistance 97.036 FEMA-4382-DR-Carr Fire 11,770 - Direct Programs:

Disaster Grants - Public Assistance 97.039 HMGP 4382-143-27F 56,067 - Direct Programs:

Disaster Grants - Public Assistance 97.044 EMW-2021-FG-05829 48,438 - Passed through the County of Shasta:

Homeland Security Grant Program (HSGP) 97.067 AGR.PH.CityofRedding.HSG.FY20 55,988 - Homeland Security Grant Program (HSGP) 97.067 AGR.PH.CityofRedding.HSG.FY21 30,000 - Homeland Security Grant Program (HSGP) 97.067 HSG 2021 - C-9456 12,506 - Subtotal Assistance Listing Number 97.067 - 98,494
Direct Programs:

Staffing for Adequate Fire & Emergency Response 97.083 EMW-2021-FF-00741 83,608 - Total Department of Homeland Security - 339,257
Total Expenditures of Federal Awards 47,400,499 $ 164,826 $ Packet Pg. 213 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2023
(9)
NOTE 1 REPORTING ENTITY
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Redding (City). The City’s reporting entity is defined in Note 1 to the City’s basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included in the schedule. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.

NOTE 2 BASIS OF ACCOUNTING
The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting and the accrual basis of accounting for program expenditures accounted for in governmental funds and proprietary funds, respectively, as described in Note 1 of the City’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

NOTE 3 FEDERAL ASSISTANCE LISTING NUMBERS
The program titles and federal assistance listing numbers were obtained from the federal or pass-through grantor.

NOTE 4 INDIRECT COST RATE
The City did not elect to use the 10% de minimis indirect cost rate as covered in 2 CFR §200.414.

NOTE 5 PASS-THROUGH ENTITIES’ IDENTIFYING NUMBER
When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program, or the City was unable to obtain an identifying number from the pass-through entity.

Packet Pg. 214 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
(10)
Section I – Summary of Auditors’ Results
Financial Statements

1. Type of auditors’ report issued: Unmodified

2. Internal control over financial reporting:
 Material weakness(es) identified? yes x no
 Significant deficiency(ies) identified? yes x none reported

3. Noncompliance material to financial
statements noted? yes x no
Federal Awards

1. Internal control over major federal programs:
 Material weakness(es) identified? yes x ___ no
 Significant deficiency(ies) identified? yes x___ none reported

2. Type of auditors’ report issued on
compliance for major federal programs: Unmodified

3. Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)? yes x no
Identification of Major Federal Programs
Assistance Listing Number(s) Name of Federal Program or Cluster

14.228 Community Development Block Grant

14.239 HOME Investment Partnership

21.027 COVID-19 Coronavirus State and Local Fiscal
Recovery Funds

20.507/20.526 Federal Transit Cluster

Dollar threshold used to distinguish between
Type A and Type B programs: $ 1,422,015
Auditee qualified as low-risk auditee? x yes no
Packet Pg. 215 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2023
(11)
Section II – Financial Statement Findings
Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards.

Section III – Findings and Questioned Costs – Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a).

Packet Pg. 216 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023) CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(12)
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS

APPLICABLE TO THE PASSENGER FACILITY CHARGE PROGRAM AND

ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON

THE SCHEDULE OF PASSENGER FACILITY CHARGES
Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
Report on Compliance for the Passenger Facility Charge Program Opinion on Compliance
We have audited the City of Redding (the City) compliance with the types of compliance requirements identified as subject to audit in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration (the Guide), for its passenger facility charge program for the year ended June 30, 2023.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on the Passenger Facility Charge Program for the year ended June 30, 2023.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the Federal Aviation Administration. Our responsibilities under those standards and the Federal Aviation Administration are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s government programs.

Packet Pg. 217 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023) Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
(13)
Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Federal Aviation Administration will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the government program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Federal Aviation Administration, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Federal Aviation Administration, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Packet Pg. 218 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023) Honorable Mayor and Members of City Council
of the City of Redding
Redding, California
(14)
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Federal Aviation Administration. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Passenger Facility Charges Collected and Expended and Interest Collected
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year end June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 13, 2023, which contained unmodified opinions on those financial statements. The accompanying Schedule of Passenger Facility Charges Collected and Expended and Interest Collected is presented for purposes of additional analysis as specified in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration, and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Passenger Facility Charges Collected and Expended and Interest Collected is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

CliftonLarsonAllen LLP
Roseville, California
December 13, 2023
Packet Pg. 219 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND EXPENDED AND

INTEREST COLLECTED
YEAR ENDED JUNE 30, 2023
(15)
Cumulative Total September 30, December 31,
June 30, 2022 2022 2022
Unexpended (over expended) passenger facility $ 235,050 126,445 $ 306,082 $ charges and interest, beginning of period
Amount
Revenues: Approved
Passenger facility charges collected 69,485 4,544,295 102,828 Interest earned 19,779 1,547 1,626
Total passenger facility charge revenue $ 4,912,043 4,564,074 71,032 104,454 Expenses:

Amount
Project Number/Project Name Approved
Completed and Closed Applications 2,766,535 $ 2,766,535 - - Open Projects
Application 11-04-C-01-RDD
001-Storage Building for FAR Part 139 Equipment 14,791 14,791 - - 002-Update Airport Layout Plan (ALP) 1,500 1,500 - -
003-Prepare Airport Electrical Master Plan 1,500 1,500 - - 004-Acquire Aircraft Rescue Fire Fighting (ARFF) Equipment 1,992 1,992 - - 005-Rehabilitate Airfield Guidance Signs 16,588 16,588 - - 006-Rehabilitate Runway 13/34 - Design Only 3,250 3,250 - - 007-Rehabilitate Parallel and Connecting Taxiways - Design Only 2,302 2,302 - - 008-Rehabilitate Terminal Building 60,346 60,346 - -
009-Conduct Wildlife Hazard Assessment 4,510 4,510 - -
010-Terminal Building Expansion - Design Only 12,498 12,498 - - 011-PFC Administration Costs 35,000 35,000 - -
017-Rehabilitate and Expand Terminal Building 519,645 519,645 - - Application 17-05-C-00-RDD
001-Aircraft Rescue and Fire Fighting Vehicle Acquisition 68,676 68,676 - - 002-Airport Master Plan Update 44,832 44,800 - -
003-ADA Passenger Loading Ramp 4,984 4,984 - -
004-Airport Pavement Management System Study 4,735 4,735 - - 005-T-Hangar Taxilane Reconstruction 458,672 394,850 - - 006-West Tie Down Apron Reconstruction 323,278 313,730 - - 007-Airccraft Rescue and Fire Fighting Station Modifications 1,735 1,735 - - 009-Environmental Assessment Parallel Runway 32,690 187 - - 013-PFC Application/Administration Costs 150,000 54,870 - - Application 23-06-C-00-RDD
001-PFC Audit 61,141 - - -
002-Guidance Sign Installation & Misc NAVAID 30,811 - - - 003-Terminal Loop Design 53,633 - - -
004-AAAE-IET Training Program 42,000 - - -
005-Update Airport Master Plan Study 103,927 - - -
006-Master Drainage Study 52,001 - - -
Total passenger facility charge revenue expenditures 4,329,024 - - Unexpended (over expended) passenger facility
charges and interest, end of period $ 235,050 $ 306,082 $ 410,536 (Continued)
For the Quarter Ended
Packet Pg. 220 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND EXPENDED AND

INTEREST COLLECTED
YEAR ENDED JUNE 30, 2023
(16)
For the Year
Ended
March 31, June 30, June 30, Cumulative Total
2023 2023 2023 June 30, 2023
Unexpended (over expended) passenger facility $ 410,536 $ 247,576 $ 235,050 $$ - charges and interest, beginning of period
Revenues:

Passenger facility charges collected 73,530 80,815 326,658 4,870,953 Interest earned 1,166 1,668 6,007 25,786
Total passenger facility charge revenue 74,696 82,483 332,665 4,896,739 Expenses:

Project Number/Project Name
Completed and Closed Applications - - - 2,766,535
Open Projects
Application 11-04-C-01-RDD
001-Storage Building for FAR Part 139 Equipment - - - 14,791 002-Update Airport Layout Plan (ALP) - - - 1,500
003-Prepare Airport Electrical Master Plan - - - 1,500
004-Acquire Aircraft Rescue Fire Fighting (ARFF) Equipment - - - 1,992 005-Rehabilitate Airfield Guidance Signs - - - 16,588
006-Rehabilitate Runway 13/34 - Design Only - - - 3,250 007-Rehabilitate Parallel and Connecting Taxiways - Design Only - - - 2,302 008-Rehabilitate Terminal Building - - - 60,346
009-Conduct Wildlife Hazard Assessment - - - 4,510
010-Terminal Building Expansion - Design Only - - - 12,498 011-PFC Administration Costs - - - 35,000
017-Rehabilitate and Expand Terminal Building - - - 519,645 Application 17-05-C-00-RDD
001-Aircraft Rescue and Fire Fighting Vehicle Acquisition - - - 68,676 002-Airport Master Plan Update - - - 44,800
003-ADA Passenger Loading Ramp - - - 4,984
004-Airport Pavement Management System Study - - - 4,735 005-T-Hangar Taxilane Reconstruction - - - 394,850
006-West Tie Down Apron Reconstruction - - - 313,730
007-Airccraft Rescue and Fire Fighting Station Modifications - - - 1,735 009-Environmental Assessment Parallel Runway - - - 187
013-PFC Application/Administration Costs - - - 54,870
Application 23-06-C-00-RDD
001-PFC Audit 61,141 - 61,141 61,141
002-Guidance Sign Installation & Misc NAVAID 30,811 - 30,811 30,811 003-Terminal Loop Design 67,660 - 67,660 67,660
004-AAAE-IET Training Program 27,750 - 27,750 27,750
005-Update Airport Master Plan Study 29,525 3,115 32,640 32,640 006-Master Drainage Study 20,769 389 21,158 21,158
Total passenger facility charge revenue expenditures 237,656 3,504 241,160 4,570,184 Unexpended (over expended) passenger facility
charges and interest, end of period $ 247,576 $ 326,555 $ 326,555 $ 326,555 (Concluded)
For the Quarter Ended
Packet Pg. 221 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

NOTES TO THE SCHEDULE OF PASSENGER FACILITY CHARGES COLLECTED AND

EXPENDED AND INTEREST COLLECTED
YEAR ENDED JUNE 30, 2023
(17)
NOTE 1 REPORTING ENTITY
The accompanying Schedule of Facility Charges Collected and Expended and Interest Collected includes all the Passenger Facility Charges (PFC) and the interest earnings thereon collected by the City from July 1, 2022 through June 30, 2023. The City currently collects $4.50 per enplaned passenger. The current approval for the charges as approved by the Federal Aviation Administration (FAA) is expected to end on February 1, 2025.

NOTE 2 BASIS OF ACCOUNTING
The Schedule of Facility Charges Collected and Expended and Interest Collected was prepared on the accrual basis of accounting. PFCs are recorded as revenue when earned and expenditures for debt service and approved capital projects are recorded as expenditures are made. Expenditures are made in accordance with an approved FAA application.

Packet Pg. 222 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

PASSENGER FACILITY CHARGE PROGRAM

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
(18)
Section I – Summary of Auditors’ Results
A. Current Year Findings and Questioned Costs – Passenger Facility Charge Program No findings or questioned costs were noted on the City’s compliance with requirements of the passenger facility charge program for the year ended June 30, 2023.

B. Prior Year Findings and Questioned Costs – Passenger Facility Charge Program No findings or questioned costs were noted on the City’s compliance with requirements of the passenger facility charge program for the year ended June 30, 2022.

Packet Pg. 223 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023) Packet Pg. 224 Attachment: 2023 City of Redding Single Audit Report - FINAL (9B--Reports from Independent Auditors for the year ended June 30, 2023) CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
To the Honorable Mayor and Members
of the City Council of the City of Redding
Redding, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Redding as of and for the year ended June 30, 2023, and have issued our report thereon dated December 13, 2023. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as well as certain information related to the planned scope and timing of our audit in our statement of work dated October 12, 2022. Professional standards also require that we communicate to you the following information related to our audit.

Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Redding are described in Note 1 to the financial statements.

As described in Note 1, the City changed accounting policies related to subscription-based information technology arrangements (SBITA) by adopting Statement of Governmental Accounting Standards Board (GASB Statement) No. 96, Subscription-based Information Technology Arrangements, in 2023.

Accordingly, the accounting change has been applied to the beginning of the period of adoption.

We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:
 Management’s estimate of the claims liabilities is based on actuarial valuation reports and listings of open claims obtained from specialists.
 Management’s estimate of the net other post-employment benefits (OPEB) liability and related deferred inflows/outflows of resources is based on actuarial valuation reports obtained from specialists.
 Management’s estimate of the net pension liability and related deferred inflows/outflows of resources is based on actuarial valuation reports obtained from specialists.

Packet Pg. 225 Attachment: Redding Governance Communication AU-C-260 Letter (9B--Reports from Independent Auditors for the year ended June 30, 2023) To the Honorable Mayor and Members
of the City Council of the City of Redding

 Management’s estimate of the liability for the landfill closure/postclosure care costs is based on yearly estimates prepared by the City and reviewed by the California Department of Resources Recycling and Recovery agency.

Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. There were no particularly sensitive financial statement disclosures.

The financial statement disclosures are neutral, consistent, and clear.

Significant unusual transactions
We identified no significant unusual transactions.

Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.

Management did not identify and we did not notify them of any uncorrected financial statement misstatements.

Corrected misstatements
Management did not identify and we did not notify them of any financial statement misstatements detected as a result of audit procedures.

Disagreements with management
For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit.

Management representations
We have requested certain representations from management that are included in the management representation letter dated December 13, 2023.

Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the entity’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Packet Pg. 226 Attachment: Redding Governance Communication AU-C-260 Letter (9B--Reports from Independent Auditors for the year ended June 30, 2023) To the Honorable Mayor and Members
of the City Council of the City of Redding

Required supplementary information
With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI.

Supplementary information in relation to the financial statements as a whole With respect to the schedule of expenditures of federal awards (SEFA) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the SEFA to determine that the SEFA complies with the requirements of the Uniform Guidance, the method of preparing it has not changed from the prior period or the reasons for such changes, and the SEFA is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the SEFA to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated December 13, 2023.

With respect to the Combining and Individual Non-major Fund Financial Statements and Budgetary Comparison Schedules and the Schedule of Passenger Facility Charges Collected and Expended and Interest Collected (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated December 13, 2023.

Other information included in annual reports
Other information (financial or nonfinancial information other than the financial statements and our auditors’ report thereon) is being included in your annual report and is comprised of the Introductory and Statistical Sections and the Supplementary Historical Information. Our responsibility for other information included in your annual report does not extend beyond the financial information identified in our opinion on the financial statements. We have no responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in your annual report. We are required by professional standards to read the other information included in your annual report and consider whether a material inconsistency exists between the other information and the financial statements because the credibility of the financial statements and our auditors’ report thereon may be undermined by material inconsistencies between the audited financial statements and other information. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Our auditors’ report on the financial statements includes a separate section, “Other Information,” which states Packet Pg. 227 Attachment: Redding Governance Communication AU-C-260 Letter (9B--Reports from Independent Auditors for the year ended June 30, 2023) To the Honorable Mayor and Members
of the City Council of the City of Redding

we do not express an opinion or any form of assurance on the other information included in the annual report. We did not identify any material inconsistencies between the other information and the audited financial statements.
* * *
This communication is intended solely for the information and use of the Honorable Mayor, members, and management of the City of Redding and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Roseville, California
December 13, 2023
Packet Pg. 228 Attachment: Redding Governance Communication AU-C-260 Letter (9B--Reports from Independent Auditors for the year ended June 30, 2023)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept the Visions and Guiding Principles Framework for the update to the Redding Riverfront Specific Plan.

Fiscal Impact
There is no impact to the General Fund by approving the Visions and Guiding Principles Framework.

Alternative Action
City Council (Council) could choose not to accept the Visions and Guiding Principles Framework and provide other direction to staff.

Background/Analysis
At their regularly scheduled meeting on August 15, 2023, the Council accepted a report regarding the Community Engagement Strategy and formation of a Community Coalition Group to advance the effort of the Redding Riverfront Specific Plan update. The August 15, 2023 Council staff report is attached for reference. Additionally, on August 14 and 15, 2023, staff hosted a Community Open House and Stakeholder Interviews at the Redding Civic Auditorium to solicit ideas from community members and stakeholders regarding a vision for the future of the Redding Riverfront. Since that time, staff has compiled the feedback from the Open House and Stakeholder Interviews and developed a list of emerging key themes in the following areas:
assets, challenges and opportunities, and visions for the future. The Community Coalition Group met four times throughout October and November, 2023, and using the input and resulting key themes from the Community Open House discussions, helped staff develop the draft Vision and Guiding Principles Framework.

MEETING DATE: January 16, 2024
ITEM NO. 9.4(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.4(a)--Consider accepting the Visions and Guiding Principles Framework for the update to the Redding Riverfront Specific Plan.

Jeremy Pagan, Development
Services Director/Bldg
Official
Packet Pg. 229
Report to Redding City Council January 10, 2024
Re: 9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City of Redding Page 2
The draft Vision and Guiding Principles Framework is attached to this staff report and includes additional background information of the Community Open House, Stakeholder Interviews, and Community Coalition meetings. If Council accepts the Vision and Guiding Principles Framework, staff will proceed with next steps in the Redding Riverfront Specific Plan update process, which will include additional community engagement such as community discussions, surveys, and design charrettes, as well as completing the analysis of existing conditions and launch conceptual development of draft specific plan language.

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

Council Priority/City Manager Goals
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
City Council Staff Report: August 15, 2023
Riverfront Specific Plan Vision and Guiding Principles Framework Packet Pg. 230
Packet Pg. 231 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 232 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 233 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 234 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 235 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 236 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 237 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 238 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 239 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 240 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 241 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 242 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 243 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 244 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Packet Pg. 245 Attachment: City Council Staff Report: August 15, 2023 (9.4(a)--Riverfront Specific Plan Visions and Guiding Principles Framework, by the City Redding Riverfront Specific Plan

VISION AND GUIDING PRINCIPLES FRAMEWORK
City Council Review Draft | January 2, 2024
Packet Pg. 246 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

PART I INTRODUCTION
Project Area
What Is a Specific Plan?
How Will the Community Be Involved?
Developing a Vision

OPEN HOUSES AND DISCUSSIONS
Community Open Houses
Community Discussions
Key Themes: Assets
Key Themes: Challenges and Opportunities
Key Themes: Vision for the Future

COMMUNITY COALITION
Mission and Charge
Membership
Meetings

VISION AND GUIDING PRINCIPLES
A. A Healthy and Resilient Natural Environment
B. Respecting the Indigenous Community: Past, Present, and Future C. Environmentally Sensitive and Economically Viable Arts, Cultural, and Entertainment Venues D. Appropriate Scale and Uses
E. World-Class Recreation and Activities
F. Connected Spaces
G. Memorable and Vibrant Places

NEXT STEPS
How the Community Can Stay Involved

CONTENTS

PART II

PART III

PART IV
PART V
Packet Pg. 247 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific In April 2023, the Redding City Council began a community-led process to update the Redding Riverfront Specific Plan. The purpose of this project is to reintroduce the community to the river by creating a long-term vision for the 380 acres of public and private land and water along the Sacramento River.

The Specific Plan document, which will be developed based on significant community engagement and discussion, will ultimately establish goals, policies, and development standards to guide public and private development, land stewardship and conservation, roadway and infrastructure projects, and other activities within the study area. It will also include a series of implementation strategies necessary to transform the community vision for the Riverfront into a reality.

PART I

INTRODUCTION
1 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 248 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific Project Area
The Redding Riverfront Specific Plan project area
includes a range of public and private property along
the Sacramento River, generally bounded by the
Redding Memorial Park/Park Marina Drive on the
west, the Sacramento River on the north and east, and
Cypress Avenue on the south.

The project area is adjacent to the Sacramento River
and includes major uses and destinations such as
the Sundial Bridge, Turtle Bay Exploration Park,
Redding Rodeo Grounds, Redding Civic Auditorium,
Sheraton Hotel, Aqua Golf Driving Range, Kutras Park,
and Marina RV Park. The McConnell Arboretum and
Botanical Gardens are located to the north of the area, with Redding River Trail to the east. Redding Library,
City Hall, Redding Memorial Park, Sequoia Middle
School, and Cypress Elementary School are located to
the west of the site.

Study Area Boundary
Land
Parcel Map
Legend
1 inch = 800 feet
44 5
McConnell
Arboretum and
Botanical Gardens
Redding
Memorial
Park
Redding
Library
Sequoia
Middle School
Cypress
Elementary School
Redding
City Hall
Bechelli Lane
Turtle Bay East
Open Space
Redding
River Trail
Aqua Golf
Driving Range
Marina RV
Park
Kutras Park
Sheraton
Redding Hotel Redding Civic
Auditorium
Redding Rodeo
Grounds
Sundial
Bridge
Turtle Bay
Exploration Park
Sacramento River
S Market Street
Hilltop Drive
Hilltop Drive
Hartnell Avenue
S Market Street
East St
S Market Street
Parkview Avenue
Continental Street
Butte Street
Locust Street
Cypress Avenue
Olympus Avenue
South Street
Placer Street
Anderson Cottonwood Canal
Park Ma r ni a Dr vi e
Shasta
Charter Academy Tiger
Field
Education
Study Area Boundary
Parks
Parcel
Major Destinations
Major Roads
River Channel
Water Bodies
Canal
Land
Parcel Map
Legend 1 inch = 800 feet
44 5
McConnell
Arboretum and
Botanical Gardens
Redding
Memorial
Park
Redding
Library
Sequoia
Middle School
Cypress
Elementary School
Redding
City Hall
Bechelli Lane
Turtle Bay East
Open Space
Redding
River Trail
Aqua Golf
Driving Range
Marina RV
Park
Kutras Park
Sheraton
Redding Hotel Redding Civic
Auditorium
Redding Rodeo
Grounds
Sundial
Bridge
Turtle Bay
Exploration Park
Sacramento River
S Market Street
Hilltop Drive
Hilltop Drive
Hartnell Avenue
S Market Street
East St
S Market Street
Parkview Avenue
Continental Street
Butte Street
Locust Street
Cypress Avenue
Olympus Avenue
South Street
Placer Street
Anderson Cottonwood Canal
Park Ma r ni a Dr vi e
Shasta
Charter Academy Tiger
Field
2 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 249 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific What Is a Specific Plan?
A Specific Plan is a tool used by the
City of Redding and the community
to implement the broader direction
of the City's General Plan. It provides
specific policies and requirements for
development corresponding to a unique
geographic area. It must include a land
use plan for location and intensity of uses;
have an implementation strategy; address
public infrastructure required to serve
the area; and propose capital project and
infrastructure funding options necessary
to implement the plan. In certain
cases, a Specific Plan can go beyond
policy guidance and include detailed
development standards tailored to the
character and needs of the area.

The Specific Plan process includes robust
environmental review and documentation
under the California Environmental Quality
Act (CEQA). The City anticipates that
the Redding Riverfront Specific Plan will
require the creation of an Environmental
Impact Report (EIR). The EIR will evaluate
potential environmental impacts of
plan implementation. It will also include
mitigation measures to reduce these
impacts.

The Redding Riverfront Specific Plan
is being led by the City of Redding at
the direction of the City Council. The
Project Team is made up of City of
Redding staff and consultants. In April
2023, the City hired MIG to lead the
specific plan project. MIG is a planning,
environmental, design, and engagement
firm from Sacramento. MIG is supported
by additional engagement, design, and
technical experts from Tawaw Architecture
Collaborative (Indigenous community
engagement and design), GHD
(mobility and infrastructure), Populous
(architectural design), Nichols, Melburg &
Rossetto Architects (architectural design/
local Redding conditions), and Basin
Research (cultural resources).

What a Specific Plan includes . . .
▪ Vision, Goals, Policies, and
Development Regulations unique
to the Redding Riverfront Area
▪ Design Guidelines for new projects
▪ Economic Analysis and Incentives
▪ Circulation Plan (vehicle, bicycles,
pedestrians, parking)
▪ Infrastructure Analysis (capacity
and funding)
▪ Environmental Analysis
What a Specific Plan does not include . . .
▪ Individual public or private development
projects (those are proposed after the
Specific Plan is adopted, and they must
be consistent with the Plan)
3 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 250 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific How Will the Community Be Involved?
Robust and transparent community involvement is vital to this project. There will be multiple opportunities for community members to participate both in person and through online discussions during the project. The Project Team has prepared a detailed Community Involvement Strategy (CIS) that includes engagement goals and metrics to ensure broad participation.

Over the course of the two-year process, the Project Team will ensure that there is broad community support on the vision, goals, projects, and components included in the updated plan. This report summarizes the first major step in the project, which is the creation of an emerging Vision and Guiding Principles Framework.

Summer Fall Winter Spring Summer Fall Winter Spring
2 0 2 3 2 0 2 4
Community
Discussions and
Events Open Houses and
Community
Discussions
Community
Coalition
Major Reports
and Analysis
2 0 2 5
City
Commission and
Council Review
Community Coalition Meetings
Pop-up Events
and Community
Discussions
Community Design
Charrettes and
Discussions
Draft Riverfront
Specific Plan
and EIR
Final Riverfront
Specific Plan
and EIR
Summer
City Council
Meeting
City Council
Public Hearings
Phase 1: Kick-Off
and Visioning
Phase 2: Analysis
and Opportunities
Phase 4: Specific Plan
and EIR Development
Phase 3: Plan
Concepts Development
Commission and City
Council Meetings City Council
Meeting
Existing
Conditions
Alternatives
Summary
Draft Plan
Workshop and
Discussions
Commission and
City Council Meetings
Vision and Guiding
Principles
Framework
Overall Project Schedule
4 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 251 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific One of the first major project activities was a series of Community Open Houses and discussions held in August 2023.

These events provided an opportunity for the Project Team to listen to the community and solicit ideas on a vision for Redding Riverfront’s future. They also provided a forum to hear feedback on assets, challenges, and opportunities that will help inform the Specific Plan. The following section summarizes the events and community members comments, concerns, and ideas for the future of the Redding Riverfront area.

PART II

OPEN HOUSES AND DISCUSSIONS
5 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 252 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific Community Open Houses
The City hosted two Community Open
Houses on August 14, 2023, at the Civic
Auditorium. The events were organized
as open sessions for the duration of the
time with two formal presentations given
at 2:00 p.m. and 5:30 p.m. Following
each presentation, participants were
encouraged to join a larger group
discussion facilitated by a member
of the Project Team. This provided an
opportunity for community members
to ask questions and hear from each
other. The Project Team documented
verbal comments from each large group
discussion in a wallgraphic.

Over 200 community members attended
the Community Open Houses and shared
their ideas, concerns, and vision(s) for the
future of the Redding Riverfront area.
6 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 253 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific Community Discussions
On August 15, 2023, the Project Team
interviewed key community members,
business and property owners,
and appointed officials as an initial
engagement activity. Participants were
asked for their perspectives on key
issues and opportunities for the Redding
Riverfront that can be addressed during
the Specific Plan process.

Interview participants received an
invitation directly from City staff, either by
phone or email. The interviews consisted
of one hour slots that were conducted in
person at the Redding Civic Auditorium.

Combined Community
Feedback Summary
The Community Open House and
Community Discussions generated a
wealth of ideas, concerns, and vision
concepts for the future of the Riverfront
area. The following pages are a combined
summary of the major themes heard
during the open houses and discussions.

Anderson-Cottonwood
Irrigation District
Ronnean Lund, Steve McCarley
Asphalt Cowboys
Cameron Middleton
Chamber of Commerce
Jake Mangas
Civic/Advance Redding
Julie Dyar
Community Leader
Former CA State Senator
and Redding Mayor Maurice
Johannessen
Flyshop/Fishing Community
Terry Jepsen
Hixenbaugh
Steven and Annette Hixenbaugh
Indigenous Community Group
Kenwani Kravitz (Wintu/Pit River),
Radley Davis (Wintu/Pit River),
Michelle Radcliff Garcia (Wintu),
Fred Mankins (Global Cultural
Resources), Lillie Lucero (Redding
Rancheria), Lorraine Lindsay
(Wintu), Jonathon Freeman
(Chichimeca)
The McConnell Foundation
Shannon Phillips
North Valley Catholic Social
Services (NVCSS)
Jessica Suyapa
Office Group
Benjamin Claassen, Wayne Maire
Property Owner
Chris Kutras
Redding Rodeo
Cindy Schonholtz
Residential Group
Nancy Milton, RG Coop
Riverside Eyecare
Scott Sumsion
Shasta Environmental Alliance
David Ledger
Turtle Bay
Lindsay Myers
VIVA Downtown
John Truitt
Wintu Audubon Society
Bruce Webb
Community Discussion Participants
Individual or Small Group Interviews
7 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 254 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific Key Themes
Assets
Natural Beauty and Ecosystem
The Riverfront’s natural beauty is its
greatest asset, along with the ecosystem
it provides to many native and specialstatus species living along the Riverfront, including salmon, trout, bald eagles, deer,
otters, raccoons, other fish, and migrating
birds.

Riparian Habitat
The Redding Riverfront is an expansive
riparian zone providing habitat for many
wildlife species including salmon, eagles,
herons, sandhill cranes, and neotropical
migrant birds. Native plants and trees help
sustain a thriving ecosystem and provide
much-needed shade and cooling.

Parkland and Open Space
Parkland and open space, with trails
along the Riverfront, are easily accessible
to residents and visitors and provide
opportunities to view and appreciate
natural beauty, flora, and fauna.

Trails and Walking Paths
Existing walking, hiking, and biking trails
in the parkland and along the Riverfront
support active transportation and provide
recreational access.

Local History and Culture
The Redding Riverfront has a rich history
and is culturally significant to the Wintu
Tribe. Some monuments in the area honor
Wintu history. There is also a history of
Redding’s fishing, timber, and gravel
industries within the study area.

Unique Attractions
The Sundial Bridge, Redding Civic
Auditorium, Redding Rodeo Grounds,
Turtle Bay Exploration Park and Museum,
and Aqua Golf are all unique physical
attractions that make the Riverfront a
destination for residents and visitors.

Existing Uses and Users
The Riverfront is home to a wide range
of uses and users that support both the
local community and tourism industries.

These include office and commercial
businesses in the Southern Riverfront, the
Sheraton Hotel, Bethel Church (currently
leasing space in the Civic Auditorum),
the Redding Rodeo, and many others.

The Riverfront area also includes unique
infrastructure, such as the ACID irrigation
channel, the Monolith, and the public boat
ramp.

Special Events
Events such as concerts, conferences, and
fireworks are activities the community
would like to see continued or even
expanded in the future. These events
create unique opportunities to attract
people to the Riverfront during different
times of the year.
8 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 255 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific Environmental Protection
There are concerns about the conflicts
between the expansion of uses and
activities, and the protection of natural
resources, including open space, bird, fish,
and other animal habitats.

Appropriate Planning and Design
There needs to be an accurate, objective,
and transparent environmental analysis
process conducted as part of the Specific
Plan update. Core to this is the need
to protect assets as part of the entire
planning process, and creating policy
language that protects assets as part of
the entire project.

Land Ownership and Control
There is a desire to craft a Specific Plan
that influences the larger land owners to
work in harmony, maximizing the benefits
of the Riverfront area for all residents,
while also enhancing the natural and
cultural environment.

Indigenous Cultural Resources
There is a need to protect Native and
other cultural resources. This includes
creating mapping and analysis for native
artifact locations, maintaining Indigenous
connections and access to land and river,
and balancing native historical awareness
and current community needs.

Redding Rodeo Association
There was discussion over the question
of keeping, maintaining, expanding, and/
or moving the rodeo grounds. Many
comments were made in support of the
Redding Rodeo and their activities and
events, noting that they are important to
many local residents and tourists.

Mobility, Access, and Traffic
There are concerns about overall
circulation and access limitations
throughout the Riverfront area. There
is a desire to address vehicle traffic,
circulation, access (including emergency
vehicles) and effective buffers to protect
riparian areas. New/expanded trail and
path connections that can create seamless
multi-modal transportation in both the
Northern and Southern Riverfront was
also raised by the community. Lastly, there
is a need to improve safety for pedestrians
and bicyclists, create more transportation
options, and develop a comprehensive
traffic and parking study.

New Mixed-Use Development
Some in the community are supportive
of new development, and there is an
interest in mixed-use development along
Park Marina Drive. Participants envisioned
an active first floor with restaurants and
shops and residential or office space on
upper floors.

Family-Friendly Activities
New development should be designed to
attract families and people of all ages to
participate in recreation, shopping, eating,
and water access.

Public Amenities and Activities
Public amenities such as a playground,
aquatic center, gardens, arboretum, and
restrooms should be built and maintained
for residents and visitors to enjoy when
visiting the Riverfront.

Safety
Safety is a concern near the Civic
Auditorium and Redding Rodeo
Grounds, and in the parking lots. It was
recommended that better activation of
the area and well-lit paths and public
spaces at night would help resolve these
issues.

Key Themes
Challenges and Opportunities
9 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 256 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific Key Themes
Vision for the Future
Protect the Natural Environment
and Resources
Conserve and enhance the natural
environment, including: protecting habitat,
bio-diversity, and the health of the river;
limiting waterfront development; limiting
expanded development footprints; sharing
and celebrating the extensive natural
resources; and creating habitats for
protected species.

Enhance Public Access and Recreation
Expand public access and uses; restore
and/or create new public parks and open
space areas; and preserve fish, bird, and
riparian habitat while providing trails,
beaches, and natural landscapes for
public.

Establish Clear Uses and
Development Standards
Create a clear vision for new development
in the Riverfront, supported by
requirements that ensure there is design
cohesion, ease of access and circulation,
and protection of natural resources as new
or renovated development is created.

Expand Outdoor Facilities
and Attractions
Create a thriving and active destination
for both residents and visitors that reflects
the small-town character of Redding
with year-round riverfront activities and
amenities that compare with other wateroriented destinations.

Engage the Indigenous Community
Ensure all Tribes and Indigenous
community members are engaged
throughout this process and are involved
in decision-making. Native input should be
provided on all proposed developments.

Native sites and cultural resources should
be protected. The Wintu Tribe should be
continually engaged as a resource for
helping preserve natural resources.

Support the Redding Rodeo
Support the modernization of the rodeo
grounds, including potential improvements
to make it a multiuse venue. Reimagine
the current use of the grounds so that
it can be activated year-round for other
public events.

Ensure Transparent and Balanced
Community Outreach
Notice and record all meetings and
workshops; ensure authentic, broad, and
well-noticed outreach activities; prioritize
those most impacted; have residents on
the Community Coalition; bring together
opposing viewpoints; make resources and
materials available to the public; and allow
people to post comments on the project
website.

Creating a Cohesive Vision
Developing a vision where all property
owners and involved groups will be willing
to cooperate was acknowledged as a
challenge for the Specific Plan.
10 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 257 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific Overview
The City of Redding formed a Community Coalition to
advise the Project Team on the development of the Vision and Guiding Principles for the Riverfront Specific Plan. Coalition members include representatives from a variety of groups and organizations, representing a range of community interests and perspectives. The following section provides and overview of the Coalition purpose and mission, membership, and meeting structure.

PART III

COMMUNITY COALITION
11 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 258 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific Mission and Charge
The mission and charge of the Coalition
was to develop a Vision Statement and
Guiding Principles for land within the
study area that will be presented to
the broader community for review and
feedback. During their meetings, they
reviewed, evaluated, and discussed
information and concepts for the study
area, including future uses and areas of
preservation and/or rehabilitation. They
also assessed the feasibility of a range of
uses and activities in the study area, with
the support of technical data and analysis
provided by the Project Team.
12 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 259 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

COMMUNITY COALITION MEMBERS
Lindsay Myers
Turtle Bay and Sheraton
Julie Dyar
Advance Redding
Chris Kutras
Kutras Properties
Melissa Buciak
Garden Tract Resident
Lesley Jessee
The McConnell Foundation
Jocelyn Olson
Kutras Tract Resident
Danica Helgren
Southern Waterfront Business Owner
(Urban Retreat Spa)
Benjamin Claassen
Southern Waterfront Business Owner
(Shasta Charter Academy)
Michele Goedert
Planning Commissioner
Josh Divine
CSAC Commissioner
Garrett Miller
Redding Resident
Baron Browning
Redding Rodeo Association
Cameron Middleton
Asphalt Cowboys
Gary Rickard*
Wintu Tribe of Northern California
Jack Potter, Jr.*
Redding Rancheria
Ryan Haedrich
Redding Chamber of Commerce
Todd Jones
Shasta EDC
Rebeca Ladrón de Guevara
Wintu Audubon Society
Christina Prosperi
Caltrans District 2 Complete
Streets GIS Manager
Terry Jepsen
Redding Fly Shop
Membership
Working with the Project Team, the City
selected 20 people to be members of
the Community Coalition. The goal was
to form a group that could represent a
range of perspectives and insights related
to the Redding Riverfront area. The final
Community Coalition composition (shown
to the right) included property owners,
business owners, residential tenants, City
Commissioners, residents, and individuals
representing the Redding Rodeo
Association, non-profits, Wintu Tribe,
Redding Rancheria, Redding Chamber of
Commerce, environmental organizations,
and mobility organizations.

Meeting Format
The Community Coalition convened for
four public meetings in October and
November 2023. Each meeting lasted
approximately two hours and was held on
a Monday night at Redding City Hall. The
meetings were live streamed and there
were opportunities for public comment at
the end of the agenda. Public comments
were made either in-person or via email to
[email protected].
* Invited to participate on the Community Coalition, but did not attend a meeting. 13 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 260 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific COMMUNITY COALITION MEETING #1 | October 9, 2023
The Coalition reviewed the Riverfront Specific Plan project purpose and schedule, area history and current context, overall project goals, and community feedback from the August
2023 Open Houses. The Coalition provided comments on the Riverfront’s assets, opportunities, and challenges.

COMMUNITY COALITION MEETING #2 | October 23, 2023
The Coalition reviewed existing conditions information, including initial cultural resources, biological resources, mobility, parking, circulation, and economic trends. The Coalition provided feedback on emerging common vision
elements and key long-term desires for the Riverfront area.

COMMUNITY COALITION MEETING #3 | November 6, 2023
The Coalition reviewed a draft Riverfront Vision and Guiding Principles Framework (diagram and document). The Coalition provided feedback to help refine the draft Vision and Guiding Principles Framework.

COMMUNITY COALITION MEETING #4 | November 20, 2023
The Coalition reviewed an updated draft Riverfront Vision and Guiding Principles Framework. The Coalition provided feedback to help further refine the draft Vision and Guiding Principles Framework, so it is ready for City Council review. 14 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 261 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific The community's Vision for the future of the Redding
Riverfront is the key foundational piece for the Specific Plan process. It represents the overarching aspirational framework for how the community would like to see the area change, improve, and be enhanced in the future. While the final content of the Specific Plan is not known currently, it is envisioned to include a combination of land use policies, development standards and requirements, cultural enhancement and preservation projects, and environmental protection policies and requirements. As the City and community move through the Specific Plan process, all planning concepts, ideas, designs, policies, and programs considered for inclusion in the plan must be consistent with the Vision and Guiding Principles outlined in this document.

The following section presents the emerging Vision and Guiding Principles that were developed based on community ideas and refined by the Community Coalition.

PART IV

VISION AND GUIDING PRINCIPLES
15 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 262 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific Vision Elements
Seven Vision Elements (shown on the
diagram on the following page) build
on the key assets in the Riverfront area
and address the major challenges and
opportunities facing both the City and the
community. Each of them are intentionally
aspirational — identifying partnerships,
processes, activities, and changes that
will ensure the Riverfront area remains a
focal point for the community and visitors,
with a range of activities and uses, while
also advancing environmental protection,
habitat enhancement, and public access
and amenities.

Guiding Principles
Each Vision Element is further supported
by a series of specific Guiding Principles
that identify measurable objectives and
outcomes. These principles provide a
framework or roadmap for evaluating
concepts, designs, and ideas that are
generated during the Specific Plan
process. All components of the Specific
Plan, including regulations and funding
mechanisms, must be consistent with
the Guiding Principles. Furthermore, the
Guiding Principles work in parallel with
one another, and no principle is more or
less important than the other.
16 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 263 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific Redding
Riverfront
Vision
Elements
A
A Healthy
and Resilient
Natural
Environment
B
Respecting the
Indigenous
Community:

Past, Present, and
Future
C
Environmentally
Sensitive and
Economically
Viable Arts,
Cultural, and
Entertainment
Venues
D
Appropriate Scale
and Uses
E
World-Class
Recreation and
Activities
F
Connected
Spaces
G
Memorable and
Vibrant Places
17 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 264 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

VISION ELEMENT A

A HEALTHY AND RESILIENT

NATURAL ENVIRONMENT
A.1 Celebrate the immense natural
beauty of the Sacramento River and
Redding Riverfront area.

A.2 Protect and identify opportunities
to restore sensitive natural
communities that support
biodiversity to ensure the long-term
health of the Sacramento River
ecosystem.

A.3 Create opportunities for native
fish, animals, and birds to thrive
throughout their entire life cycles.

A.4 Require development and activities
near the Sacramento River and/
or critical habitat areas to be
compatible, complimentary, and low
(or no) impact.

A.5 Mitigate noise and light impacts on
sensitive natural communities.

A.6 Identify opportunities to create more
public open space to support the
“re-wilding” of the Riverfront area.

A.7 Comply with all Federal, State, and
local statutory and regulatory
requirements for the Riverfront area.

18 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 265 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

VISION ELEMENT B
RESPECTING THE INDIGENOUS COMMUNITY:

PAST, PRESENT, AND FUTURE
B.1 Honor the deep Indigenous cultural
connections to the Redding
Riverfront area.

B.2 Engage the Indigenous community
and include them in land use, habitat
protection, recreation, and cultural
landscapes discussions and decisions.

B.3 Protect Indigenous sacred sites and
cultural resources.

B.4 Maintain Indigenous connections and
access to land, river, and animals.

B.5 Explore opportunities and
partnerships with the Indigenous
community for creating an
Indigenous-owned and -operated
cultural center and other spaces.

19 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 266 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

VISION ELEMENT C

ECONOMICALLY VIABLE AND THRIVING ARTS,

CULTURAL, AND ENTERTAINMENT VENUES
C.1 Allow for a range of activities,
events, and programs through multifaceted, flexible facilities, so Redding remains the center for arts, culture,
and entertainment for the region.

C.2 Support the viability and success of
historical uses and arts, cultural, and
entertainment events and venues
in the area that are a key part of
the unique history and identity of
Redding.

C.3 Ensure that new venues and
destinations are scaled and
programmed to address local and
visitor desires while also being
economically viable.

C.4 Ensure that new venues, activities,
and destinations are designed in
such a way that they are efficient to
maintain and operate, supporting
their long-term financial success.

C.5 Collaborate with Cultural District
partners to enhance public art,
cultural, and entertainment elements
so the Riverfront is a highlight of the
designated Redding Cultural District.
20 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 267 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

VISION ELEMENT D

APPROPRIATE SCALE AND USES
D.1 Require new buildings and uses to
reflect the scale and character of
Redding.

D.2 Design community destinations that
are safe, well-lit, easy to access, and
ADA accessible.

D.3 Maintain the personality and
character of the existing
surrounding neighborhoods and
identify opportunities to increase
neighborhood-focused amenities.

D.4 For the Northern Riverfront:
» Create vibrant and active public
uses that support locals and
visitors.
» Identify ways to maintain or reduce
developed site coverage.

D.5 For the Southern Riverfront:
» Consider opportunities to
support local housing needs.
» Consider how development on
Park Marina Drive will impact
existing and future circulation to
reduce congestion.
» Create opportunities for public
recreation and amenities on/next
to the quarry ponds.
» Consider additional commercial,
restaurants, and mixed-use
projects along Park Marina
Drive that are compatible with
surrounding neighborhoods.
21 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 268 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

VISION ELEMENT E

WORLD-CLASS RECREATION AND ACTIVITIES
E.1 Provide additional opportunities for
boating, fishing, kayaking, and other
on-the-water activities.

E.2 Promote aquatic activities in areas
that are accessible and safe (e.g.,
calm water, warmer temperatures,
away from boating activities).

E.3 Promote outdoor activities and
connections to nature that support
health and wellbeing.

E.4 Leverage the Redding Riverfront
as a “base camp” for outdoor
enthusiasts visiting the region’s
outdoor destinations.

E.5 Focus low-impact activities within
public areas and sensitive habitats
(Northern Riverfront, Sacramento
River) and more intense activities
within private outdoor spaces and
quarry ponds.

22 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 269 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

VISION ELEMENT F

CONNECTED SPACES
F.1 Expand opportunities for people to
connect with natural areas and the
Sacramento River.

F.2 Enhance vehicle, transit, bicycle,
and pedestrian connections from
existing neighborhoods to the area,
and between major destinations
within the area.

F.3 Identify ways to reconnect the
Northern and Southern Riverfronts
to each other and to Downtown.

F.4 Identify parking locations, types, and
management strategies to ensure
that current and future uses and
activities have adequate (but not
excessive) parking.

F.5 Require new uses and spaces to be
fully ADA accessible; expand ADA
accessibility to and within existing
uses and neighborhoods.
23 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 270 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

VISION ELEMENT G

MEMORABLE AND VIBRANT PLACES
G.1 Make the Redding Riverfront safe,
visible, welcoming, and walkable.

G.2 Consider community gathering
spaces for the community to share,
including community gardens, dog
parks and pocket parks, outdoor
music venues, and public art.

G.3 Create development regulations,
design guidelines, and
implementation strategies that are
tailored to the Redding Riverfront.

G.4 Identify and address any constraints
imposed by the State of California
2019 Surplus Lands Act.

G.5 Leverage the Specific Plan and
community process to: » Analyze the economic feasibility of a range of private projects (new
development, recreation).
» Identify public investment costs
and grant funding opportunities
(ecosystem restoration,
open space enhancements,
infrastructure, recreation).

G.6 Identify opportunities for new public
infrastructure and operations
funding mechanisms, such as
Business Improvement Districts
(BID), Community Facilities District
(CFD), or Tax Increment Financing
District (TIFD).
24 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 271 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific The Vision and Guiding Principles outlined in this report are just the starting point for the Redding Riverfront Specific Plan process. This document represents the culmination of Phase 1 of the project. There will be many opportunities for community discussions throughout the course of the two-year project.

PHASE 1
Project Kick-off and Visioning
June 2023 — January 2024
PHASE 2
Analysis and Opportunities
October 2023 — March 2024
PHASE 3
Plan Concepts Development
April 2024 — June 2024
PHASE 4
Specific Plan Development and CEQA
June 2024 — June 2025
PART V

NEXT STEPS
25 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 272 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific How the Community
Can Stay Involved
The City is committed to designing and
implementing an inclusive and dynamic
community engagement process to
ensure the Redding Riverfront Specific
Plan project is based on robust and
genuine feedback from the entire
community, including civic and city
leaders, the Indigenous community,
property and business owners, current
tenants and lease holders, topical interest
organizations (e.g., mobility advocates,
environmental groups), tourism and
economic development groups, and
residents. As such, the development of
the specific plan will require inclusive
engagement during each project phase.

The community is encouraged to visit
the project website to stay up-todate on meetings, workshops, draft materials, reports and analysis, and other
components of the project. The website
is the community's resource page for all
items related to the Riverfront area. While
on the website, you can add your email
26 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 273 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific www.ReddingRiverfront.org
to receive periodic email blasts and other
project updates. There is also an area to
share comments about the Riverfront area
or the process. Scan the QR code below
to visit the project website.
27 Redding Riverfront Specific Plan | Vision and Guiding Principles Framework Packet Pg. 274 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

REDDING RIVERFRONT SPECIFIC PLAN

VISION AND GUIDING PRINCIPLES FRAMEWORK
Please visit the project website for additional project information, including Open House and Community Coalition meeting presentations and materials:
www.reddingriverfront.org
Packet Pg. 275 Attachment: Riverfront Specific Plan Vision and Guiding Principles Framework (9.4(a)--Riverfront Specific

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept the City of Redding Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023.

Fiscal Impact
There is no fiscal impact for accepting the Annual Comprehensive Financial Report (ACRF).

Alternative Action
The City Council could reject the ACRF for the fiscal year ended June 30, 2023, and provide alternate direction to staff.

Background/Analysis
The audit of the City of Redding (City) for the fiscal year that ended June 30, 2023, has been completed. The City received an unmodified opinion from the auditor, The CLA (Clifton Larson Allen LLP), a firm of Certified Public Accountants, on the report as presented. The ACFR is available for review in the City Clerk’s Office.

It should also be noted that the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2022. This was the 39th consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

MEETING DATE: January 16, 2024
ITEM NO. 9.10(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.10(a)--Consider acceptance of the City of Redding Annual Comprehensive Financial Report for the year ended June 30, 2023.

Greg Robinett, Director of
Finance/City Treasurer
Packet Pg. 276
Report to Redding City Council January 9, 2024
Re: 9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023 Page 2 A Certificate of Achievement is valid for a period of one year only. Staff believes the current ACFR continues to meet the Certificate of Achievement Program requirements, and the ACFR will again be submitted for consideration for GFOA’s award program.

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

Council Priority/City Manager Goals
• This is a routine operational item occurring on an annual basis.

Attachments
ACFR FY End June 30, 2023
Packet Pg. 277
Annual Comprehensive

FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
Packet Pg. 278 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) i

CITY OF REDDING

REDDING, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023
Prepared by:

FINANCE DEPARTMENT

Packet Pg. 279 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) ii
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Packet Pg. 280 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023)

INTRODUCTORY

SECTION
iii
Packet Pg. 281 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) iv
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Packet Pg. 282 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
v
Page

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ v Transmittal Letter ........................................................................................................................................................... ix Certificate of Achievement for Excellence in Financial Reporting – GFOA ............................................................... xvi Organization Chart ..................................................................................................................................................... xvii Directory of City Officials ........................................................................................................................................ xviii

FINANCIAL SECTION
Independent Auditors’ Report on Financial Statements ........................................................................................... 3 Management’s Discussion and Analysis (Required Supplementary Information – Unaudited) ........................... 7 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ................................................................................................................................. 30 Statement of Activities and Changes in Net Position ....................................................................................... 32 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ............................................................................................................................................. 38 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .............................................................................. 41 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................... 42 Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position ............................................................................. 43 Proprietary Fund Financial Statements:

Statement of Net Position .......................................................................................................................... 46 Statement of Revenues, Expenses, and Changes in Net Position .............................................................. 50 Statement of Cash Flows ........................................................................................................................... 52 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position .......................................................................................................... 58 Statement of Changes in Fiduciary Net Position ....................................................................................... 59 Notes to the Basic Financial Statements ............................................................................................................. 61 Index to Notes to the Basic Financial Statements ............................................................................................ 63 Required Supplementary Information (Unaudited):

Budgetary Principles ............................................................................................................................................. 147 Schedule of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual:

General Fund .................................................................................................................................................. 148 Schedules of Changes in Net Pension Liability and Related Ratios - Public Employees Retirement System Miscellaneous Plan (CalPERS) ......................................................... 150 Packet Pg. 283 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
vi
Page
FINANCIAL SECTION (Continued):

Required Supplementary Information (Unaudited):

Schedules of Plan Contributions - Public Employees Retirement System Miscellaneous Plan (CalPERS) .................................................................................................................... 152 Schedules of Changes in Net Pension Liability and Related Ratios - Public Employees Retirement System Safety Plan (CalPERS) .................................................................... 154 Schedules of Plan Contributions - Public Employees Retirement System Safety Plan (CalPERS) ................................................................................................................................. 156 Schedules of Changes in Net Pension Liability and
Related Ratios - Public Agency Retirement Services Enhancement Plan (PARS) ...................................... 158 Schedules of Public Agency Retirement Services Retirement Enhancement Plan Contributions All Tiers (PARS) ................................................................................................................... 160 Schedules of Changes in Net OPEB Liability and Related Ratios ..................................................................... 162 Schedule of Contributions-OPEB ....................................................................................................................... 164 Supplementary Information:

Non-Major Governmental Funds:

Combining Balance Sheet ............................................................................................................................ 170 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 172 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Parking Special Revenue Fund .............................................................................................................. 174 Street Maintenance Special Revenue Fund ............................................................................................ 175 Community Development Special Revenue Fund ................................................................................. 176 Housing Special Revenue Fund ............................................................................................................. 177 General Special Revenue Fund .............................................................................................................. 178 Library Special Revenue Fund .............................................................................................................. 179 General Capital Projects Fund - Major Fund ......................................................................................... 180 Non-Major Enterprise Funds:

Combining Statement of Fund Net Position ................................................................................................. 182 Statement of Revenues, Expenses, and Changes in Fund Net Position ....................................................... 185 Combining Statement of Cash Flows ........................................................................................................... 186 Internal Service Funds:

Combining Statement of Net Position .......................................................................................................... 190 Combining Statement of Activities and Changes in Net Position ................................................................ 193 Combining Statement of Cash Flows ........................................................................................................... 194 Fiduciary Funds:

Combining Statement of Fiduciary Net Position .......................................................................................... 198 Other Supplementary Information:

Supplementary Information Regarding Passenger Facility Charges .................................................................. 203 Schedule of Passenger Facility Charges Collected and Expended and Interest Collected For the quarters ended September 30, 2022, December 31, 2022, March 31, 2023, and June 30, 2023 ............................................................................................................. 204 Packet Pg. 284 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
vii
Page

STATISTICAL SECTION
Index .......................................................................................................................................................................... 209 Financial Trends:

Net Position by Component – Last Ten Fiscal Years ......................................................................................... 210 Changes in Net Position – Last Ten Fiscal Years ............................................................................................... 212 Fund Balances of Governmental Funds – Last Ten Fiscal Years ....................................................................... 217 Changes in Fund Balance of Governmental Fund – Last Ten Fiscal Years ....................................................... 218 Revenue Capacity:

General Governmental Tax Revenues by Source – Last Ten Fiscal Years ........................................................ 221 Revenue Base – Own Source Revenue – Last Ten Fiscal Years ........................................................................ 222 Electric Utility Rates – Last Ten Fiscal Years .................................................................................................... 224 Principal Electric Utility Payers – Last Ten Fiscal Years ................................................................................... 227 Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ............................................................................ 228 Computation of Direct and Overlapping Debt .................................................................................................... 231 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................................... 232 Wastewater Revenue Bond Coverage – Last Ten Fiscal Years .......................................................................... 234 Water Revenue Bond Coverage – Last Ten Fiscal Years ................................................................................... 236 Electric Revenue Bond Coverage – Last Ten Fiscal Years ................................................................................ 238 Demographic and Economic Information:

Demographic Statistics – Last Ten Fiscal Years ................................................................................................ 239 Principal Employers in the Greater Redding Metropolitan Area – Last Ten Fiscal Years ................................. 240 Full-Time City Budgeted Employees by Function/Program – Last Ten Fiscal Years ........................................ 241 Operating Information:

Capital Assets Statistics by Function/Program – Last Ten Fiscal Years ............................................................ 243 Operating Indicators by Function/Program – Last Ten Fiscal Years .................................................................. 244 Supplemental Historical Information:

Statement of Physical Condition of Airport Assets ............................................................................................ 249 History and Statement of Physical Condition of Electric Utility System Assets ................................................ 250 History and Statement of Physical Condition of Storm Drainage Utility System Assets ................................... 253 History and Statement of Physical Condition of Wastewater Utility System Assets ......................................... 255 History and Statement of Physical Condition of Water Utility System Assets .................................................. 258 Packet Pg. 285 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) viii
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Packet Pg. 286 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) ix
December 13, 2023
Honorable Mayor, Members of
City Council, and City Manager
City of Redding, California 96001
Honorable Members:

In accordance with State and local statutes, the City of Redding (City) hereby submits the Annual Comprehensive Financial Report for the year ended June 30, 2023. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe that the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and result of operations of the City in accordance with generally accepted accounting principles; and that all disclosures necessary to enable the reader to gain maximum understanding of the City’s financial affairs have been made.

Clifton Larsen Allen, LLP, a firm of licensed certified public accountants has issued an unmodified opinion on the City of Redding’s financial statements for fiscal year ended June 30, 2023.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

PROFILE OF THE CITY
The City of Redding is a general law city, incorporated under the laws of the State of California in 1887. A council of five members elected at large for alternating four-year terms governs the City. The Mayor, ViceMayor, City Manager, and City Attorney are appointed by the City Council. The City Clerk and City Treasurer are also elected officials and serve four-year terms.

Redding is the county seat for Shasta County and is located on the Sacramento River approximately 160 miles north of Sacramento, the state capital, and 150 miles east of the Pacific Ocean at the northernmost end of the Sacramento Valley. The City has an estimated population of 92,465 and encompasses approximately 60 square miles within the corporate limits. Extracting timber and the processing of wood by-products; along with agriculture, tourism, medical services, and government have historically been the pillars of the local economy.

Over the past few decades, there has been a general shift toward a service-based economy.

This report includes all of the funds of the City. Financial information for separate legal entities related to the City of Redding includes the Redding Housing Authority, Redding Area Bus Authority, the Redding Joint Powers Financing Authority and the Redding Capital Services Corporation. All are accounted for in the City’s financial statements in accordance with Governmental Accounting and Financial Reporting Standards. Component unit financial reports are on file with the City. Under California State law all redevelopment agencies were dissolved.

The Redding Redevelopment Agency was dissolved on January 31, 2012 and all excess assets were transferred to, and continue to be accounted for, in a private purpose trust fund.

Packet Pg. 287 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) x

REPORTING ENTITY AND ITS SERVICES
City Council members in separate sessions serve as the governing board of the Redding Joint Powers Financing Authority and the Redding Capital Services Corporation. All five members of the City Council sit on the eightmember governing board of the Redding Area Bus Authority and the six member Housing Authority’s board.

City staff provides accounting and administrative services to all four agencies. Additional detail is provided in Note 1, Subparagraph A of the financial statements.

Redding is a full-service city. This includes public safety (police and fire), highways and streets, public improvements, planning and zoning, recreation and parks, library, airports, convention and auditorium facility, utilities (electric, water, wastewater, storm drainage, and solid waste collection and disposal), and general administrative services.

LOCAL ECONOMY
The growth and health of an area’s economy can be determined by monitoring a wide variety of indicators. Listed below are some of these indicators in the Redding area.

Population Characteristics - The City was one of the fastest growing cities in California between 1970 and 1990, growing to 66,432 residents in 1990 from 16,659 in 1970. However, lately the City’s population growth has slowed. From 2000 to 2010 the City’s population grew by an average of 1.11 percent and from 2010 to 2020 grew by an average of .35 percent. During the last year the chart below shows the City’s population decreased .05 percent. The City’s population represents approximately 52% of Shasta County’s population. The following table indicates population growth for the City and Shasta County from 1970 to 2023:

Year Population
Annualized
Percent
Change
over
Interval Population
Annualized
Percent
Change
over
Interval
1970 16,659 --- 77,640 ---
1980 41,995 9.69% 119,449 4.40%
1990 66,432 4.69% 147,036 2.10%
2000 80,865 1.99% 163,256 1.05%
2010 89,861 1.11% 177,223 0.85%
2020 93,611 0.35% 182,155 0.23%
2021 93,879 0.02% 182,020 -0.01%
2022 * 93,058 -0.07% * 180,651 -0.06%
2023 92,465 -0.05% 179,436 -0.06%
* Revised
City of Redding Shasta County
Source: 1970-2020 data from U.S. Census; 2021-2023 estimates from the California State Department of Finance as of May 1 (January 1, 2023 report).

The City’s population, over the next 10 years, is projected to increase by approximately 392 an increase of approximately .4%. The Redding area is expected to contribute approximately 48% of the total Shasta County population because of a variety of factors that will support urban development, including utilities (wastewater, storm drainage, water, electric, and solid waste), employment, regional shopping, transportation services, and reduced commuting.

Packet Pg. 288 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) xi
Housing Costs - Housing in the City is less costly than in many other urban areas in the State of California and on the West Coast. The following table sets forth the median price of housing in other urban areas of California as compared to Shasta County, in which Redding is the largest city, as of June 2023:

Region Median Home Price
Shasta County $385,000
Sacramento $530,000
Los Angeles $832,210
Orange County $1,260,000
San Francisco $1,595,000
Source: California Association of Realtors
Industry and Employment - Extracting timber and the processing of wood by-products, together with agriculture, tourism, medical services, and government, have historically been the major sectors of employment in the City. However, the City’s economic base has diversified to a regional service economy supported by retail and wholesale trade plus educational, recreational, medical, and government services for an area covering several counties.

The major non-local government employers in the City and the County include those in medical services, and retail services. Major employers in the City of Redding, their products or services, and the approximate number of their respective full-time employees as of June 2023 are listed in the following table:

Employer Product/Services Employees
Mercy Medical Center Medical Facilities/Services 2,555
Shasta County County Services 1,863
City of Redding** City Services 913
Shasta Regional Medical Center Medical Facilities/Services 860 Redding Rancheria Casino/Redding Rancheria 665
CA Transportation Department Highways, Freeways, etc. 585 Shasta Union High School District Education 567
Shasta Community Health Medical Services 499
Shasta Community College* Education 470
Walmart Retail 413
(* ) Full –time equivalent positions. This includes employees who work outside of the City. (**) Full-time budgeted positions
Source: Derived from the Employment Development Department’s (EDD) listing of the top employers in Shasta County.

Packet Pg. 289 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) xii
According to the State Employment Development Department, the unemployment rate of the City’s metropolitan area was 5.1 percent on June 30, 2023. The following table sets forth the number and rate (expressed as a percentage) of unemployed persons living within the City’s metropolitan area for the month of June 2014 through June 2023:

Fiscal Year
Ending
June 30
Labor
Force
Unemployment
Number Rate
2014 74,814 7,204 9.6%
2015 74,192 5,805 7.8%
2016 74,420 5,236 7.0%
2017 74,073 4,366 5.9%
2018 73,786 3,773 5.1%
2019 72,960 3,467 4.8%
2020 73,812 7,215 9.8%
2021 73,145 5,288 7.2%
2022 73,014 3,313 4.5%
2023 73,449 3,730 5.1%
Source: State Department of Employment
All numbers revised annually to source.

Construction Activity - For the calendar year ending December 2022, 4,696 building permits were issued, with a total permit valuation of $193,625,100. This represents a 12% decrease in the number of permits from the previous calendar year. Permit activity has been decreasing over the past few years, the city had seen a spike in permits as people rebuilt after widespread damage caused by wildfire, snow, and hail events. As those reconstructions have begun to slow down the number of permits issued has seen a steady decrease. Multi-family permits have also increased due to increased available grant funding for affordable housing. Commercial permits have seen a decrease in recent years.

The following table sets forth the value and number of permits for new single and multiple family dwellings and businesses located in the City for the last four calendar years:
2019 2020 2021 2022
Single Family Units 223 204 151 234
Value Single Family* $65,182,744 $59,295,326 $42,964,568 $76,963,501 Multi-Family Units 91 4 244 52
Multi-Family Permits** 7 1 3 4
Value Multi-dwellings*** $9,220,325 $518,276 $38,036,402 $9,031,632 Number of Permits 24 37 33 23
Value Business*** $27,756,921 $35,738,443 $46,433,721 $44,679,660 Total Permits*** 5,146 6,756 5,317 4,696
Value Total all
Permits*** $157,668,086 $165,613,379 $165,423,886 $193,625,100 * Value of new construction only.
** Includes hotel and apartment units - "R" occupancies. *** Numbers Revised
Source: City of Redding Development Services Department Packet Pg. 290 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) xiii
Commerce - The City is a regional center of commerce for several Northern California counties. This is evidenced by its many shopping centers and malls. Support for retail sales is derived from a retail trade area population of approximately 127,300 in the primary trade area and approximately 257,000 in the secondary trade area. The primary trade area consists of the metropolitan urban area, including the cities of Redding, Shasta Lake, Anderson, and Red Bluff. The secondary trade area consists of Shasta, Trinity, and Tehama counties.

Taxable transactions in the City were approximately $2.6 billion in calendar year 2022, a .71% decrease over the same period for 2021.

Taxable Taxable Transactions
Transactions Percentage
Year (in Thousands) Increase (Decrease)
2013 $1,924,122 4.52%
2014 $1,943,607 1.01%
2015 $1,992,806 2.53%
2016 $2,022,557 1.49%
2017 $2,118,481 4.74%
2018 $2,198,010 3.75%
2019 * $2,350,397 6.93%
2020 * $2,309,818 -1.73%
2021 * $2,623,720 13.59%
2022 $2,605,204 -0.71%
* Revised
Source: California Department of Tax and Fee Administration Transportation - The City enjoys a strategic location on U.S. Interstate Highway 5, the principal transportation artery running north-south from Mexico to Canada. The City is also bisected by State Highway 299 and State Route 44, key east-west transportation arteries in Northern California.

The City is served by the Union Pacific Railroad and Amtrak for rail transportation. Greyhound serves the City with bus service. United Express Airlines provides air service from Redding Municipal Airport to San Francisco and Los Angeles, California. Alaska Airlines provides air service from Redding Municipal Airport to Seattle, Washington. Avelo Airlines provides air service from Redding Municipal Airport to Burbank, California.

Redding Area Bus Authority (RABA) is the City’s multi-bus transportation system and offers fourteen different fixed routes, rural service and demand response (curb-to-curb) services. RABA had a total ridership of 360,045 over the fiscal year which is an average total monthly ridership of approximately 30,004. Ridership over the past three fiscal years has declined following the onset of the Coronavirus pandemic.

Utilities - Electricity, solid waste collection and disposal, water, storm drainage, and wastewater services are provided by enterprise operations owned and operated by the City. Natural gas is provided by Pacific Gas and Electric Company (PG&E); basic telephone service by AT&T.

Packet Pg. 291 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) xiv
Community Services - Youth in the area attend school at one of 39 elementary schools, 9 middle/junior high schools, 16 charter schools, 1 regional occupation programs and 12 high schools. There are several higher educational institutions in the immediate area offering bachelor and master’s degrees: Chico State University Center for Regional and Continuing Education (located in the Health Science & University Center, downtown Redding), National University, Simpson University, and Shasta Bible College & Graduate School. Shasta Community College, a two-year institution, offers both day and evening courses to over 9,584 students. In addition, there are several Vocational & Technical schools offering a diverse range of programs.

The City’s parks system includes 56 developed parks and facilities, encompassing over 597 developed acres. This system includes nearly 180 acres of natural area parks, 40 plus miles of City-owned trails, and 16 special purpose facilities. Among these special purpose facilities are the Redding Civic Auditorium, which hosts cultural/performing arts programs, conferences, and conventions; the Redding Aquatic Center; the Redding Big League Dreams Sports Park; the California Soccer Park; the Senior Citizens Center; the Martin Luther King Jr.

Community Center, the Benton Dog Park; three boat ramp facilities that provide access to the Sacramento River; and almost 1,000 acres of natural open space.

The City serves as the primary medical center for Northern California. The City’s two general care hospitals serve approximately 330,000 people in Shasta, Tehama, Trinity, Siskiyou, and Lassen counties. The two largest hospitals have a total of 492 beds and employ approximately 3,454 full-time staff members. In addition, the City also has several specialized hospitals.

LONG-TERM FINANCIAL PLANNING
The City has long-range financial plans (typically ten years) for all of its major funds. On August 4, 2020 Council Policy 412 was revised to change the minimum cash reserve balance from 5% to 10%. It is the policy of the City Council that all major funds except the Electric Utility maintain a minimum of 10% of expenditures in cash reserves in all years of their financial plans. Due to the dynamic industry, it is Council policy that the Electric Utility maintains a minimum of 1.80x Debt Service Coverage (DSC) without reserves and maintains unrestricted cash reserves of 150 days of cash on hand. All of the City’s long- range financial plans meet these criteria.

ACCOUNTING SYSTEM AND BUDGETARY CONTROL
The City’s accounting records are maintained on the modified accrual basis for governmental fund types and on the accrual basis for proprietary fund types. In developing the City’s accounting system, consideration is given to the adequacy of internal accounting controls which are designed to provide reasonable, but not absolute, assurance regarding:

1. The safeguarding of assets against losses from unauthorized use or disposition.

2. The reliability of financial records for preparing financial statements and maintaining accountability of assets.

The concept of reasonable assurance recognized that the cost of a control procedure should not exceed the benefits likely to be derived and that the evaluation of costs and benefits require estimates and judgments of management.

All internal control evaluations occur within the above framework. We believe the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

Budgetary control is maintained at the department and fund level. The City Manager may transfer appropriations between divisions within a department within a fund; however, any revision that increases total fund expenditures without providing additional revenue to cover the total expenditure must be approved by City Council.

The City utilizes the encumbrance system as a management control technique to assist in controlling expenditures.

Packet Pg. 292 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) xv

FEDERAL GRANTS SINGLE AUDIT APPROACH
The City of Redding is required to undergo a single audit in conformity with the provisions of the Single Audit Act of 1984, U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, and the OMB’s Uniform Guidance. This report has been prepared under the “single audit” concept. Under this approach, one agency is recognized as the cognizant agency or oversight agency of the Office of Management and Budget. In the case of the City of Redding, the State of California acts as the single audit oversight agency. The financial report will be reviewed by the oversight agency for compliance with all Federal grant requirements, and notification of the results will be provided to other Federal agencies. A separate schedule of Federal financial assistance is available upon request.

As a recipient of Federal, State, and County financial assistance, the City of Redding is responsible for implementing an adequate internal control structure to ensure compliance with applicable laws and regulations related to those programs. The results of the City of Redding’s single audit for the fiscal year ended June 30, 2023, provided no instances of material weaknesses in the internal control structure or significant violation of applicable laws and regulations.

CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Redding for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. This was the 39th consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report.

This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

ACKNOWLEDGMENTS
I would like to take this opportunity to thank the members of the Audit Committee and the City Council for their cooperation and support in conducting the financial operations of the City in a responsible and progressive manner. Appreciation is also expressed to all City departments who contributed information provided in this financial report and the Finance Department’s staff who made this presentation possible. It is the combined effort of all participants that resulted in the issuance of this document.

Gregory Robinett
Director of Finance/City Treasurer
Packet Pg. 293 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Redding
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
xv
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MUNICIPAL OFFICIALS
City Council
Mayor .................................................................................. Michael Dacquisto Vice Mayor ................................................................................ Mark Mezzano Council Member ............................................................................ Julie Winter Council Member ............................................................................. Jack Munns Council Member ...................................................................... Tenessa Audette Administrative Personnel
City Manager ................................................................................ Barry Tippin Assistant City Manager ................................................................... Steve Bade City Attorney ............................................................................... Barry DeWalt City Clerk .................................................................................Sharlene Tipton City Treasurer ............................................................................. Greg Robinett Director of Community Services ................................................... Kim Niemer Director of Development Services .............................................. Jeremy Pagan Director of Electric .......................................................................... Nick Zettel Director of Financial Services .................................................... Greg Robinett Director of Information Technology ..................................... Tony Van Boekel Director of Personnel ....................................................................... Kari Kibler Director of Public Works ......................................................... Chuck Aukland Fire Chief ....................................................................... Jerrod Vanlandingham Police Chief ................................................................................. Bill Schueller Packet Pg. 296 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023)

FINANCIAL

SECTION
1 Packet Pg. 297 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) 2 This page intentionally left blank
Packet Pg. 298 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members
of the City Council of the City of Redding
Redding, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Redding, California (the “City”) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
Change in Accounting Principle
As discussed in Note 1 to the financial statements, effective July 1, 2022, the City adopted new accounting guidance for subscription-based information technology arrangements (SBITA). The guidance requires entities to recognize a right-to-use subscription asset and corresponding SBITA liability for all SBITAs with terms greater than twelve months. Our opinions are not modified in respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 3 Packet Pg. 299 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) To the Honorable Mayor and Members
of the City Council of the City of Redding
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
4 Packet Pg. 300 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) To the Honorable Mayor and Members
of the City Council of the City of Redding
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Principles, Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual - General Fund, Schedules of Changes in Net Pension Liability and Related Ratios, Schedules of Plan Contributions (CalPERS and PARS), Schedule of Changes in Net OPEB Liability and Related Ratios, and Schedule of Contributions-OPEB, as listed in the accompanying table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Non-major Fund Financial Statements and Budgetary Comparison Schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Passenger Facility Charges Collected and Expended and Interest Collected is presented for purposes of additional analysis as specified in the Passenger Facility Charge Guide for Public Agencies, issued by the Federal Aviation Administration, and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Non-major Fund Financial Statements, Budgetary Comparison Schedules, and Schedule of Passenger Facility Charges Collected and Expended and Interest Collected are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections and the Supplemental Historical Information but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
5 Packet Pg. 301 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) To the Honorable Mayor and Members
of the City Council of the City of Redding
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 13, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Redding’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Roseville, California
December 13, 2023
6 Packet Pg. 302 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
7 As management of the City of Redding (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ending June 30, 2023. The management’s discussion and analysis is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the City’s financial activity, (c) identify changes in the City’s financial position (its ability to address future challenges), (d) identify any material deviations from the financial plan (approved budget), and (e) identify individual fund issues or concerns.

We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal (beginning on page ix) and the financial statements (beginning on page 27).

USING THIS FINANCIAL REPORT/OVERVIEW OF REPORT
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements to provide the reader further understanding of the City.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide the readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The government-wide financial statements consist of the following parts:

Statement of Net Position: This statement presents information on all of the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources with the difference reported as net position.

Net Position = (Assets + Deferred Outflows of Resources) – (Liabilities + Deferred Inflows of Resources) Over time, the change in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

Statement of Activities: This statement presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flow in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities), from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, police, fire, public works, planning, recreation and culture, and community development. The business-type activities of the City include electric, water, wastewater, transportation (airport and bus), storm drainage, solid waste, and convention center. Also included in the government-wide financial statements are the Redding Housing Authority, Redding Area Bus Authority (RABA), and the Redding Joint Power Financing Authority. While these agencies are legally separate agencies, their governing boards consist entirely of City Council members or in the case of RABA, the majority of the board members are members of the City Council. They function for all practical purposes as departments of the City, and therefore have been included as an integral part of the primary government.

Packet Pg. 303 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
8 The government-wide financial statements can be found on pages 29-33 of this report.

Fund Financial Statements
A fund is a group of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories as follows:

Governmental Funds: These funds are used to account for essentially the same functions reported as government activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains eleven individual governmental funds. Information is presented separately in the governmental fund balance sheet and in governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, General Capital Project Fund, and Community Development Fund, which are considered to be major funds. Data from the other eight governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages 37-43 of this report.

Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Electric Utility, Water Utility, Wastewater Utility, Solid Waste Utility, Airport Fund, Storm Drainage Utility, Redding Area Bus Authority, and the Convention Center Fund.

Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for centralized activities and services performed by certain departments for other departments of the City. The City has five internal service funds: the Equipment Fund to account for all maintenance of the motorized fleet and communication system; the Information Systems Fund to account for the data processing activities of the City; the Risk Management Fund to account for the self-insurance activities of the City; the Communications and the General Support Services Fund which accounts for mail, printing, records management, public relations and building maintenance activities; and the Municipal Utilities Support Fund, which accounts for the administrative management function of the municipal utilities and some public works. Because these services predominantly benefit governmental rather than business-type functions, they have been included within government activities in the government-wide financial statements.

Packet Pg. 304 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
9 Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Electric Utility, Water Utility, Wastewater Utility and Solid Waste Utility, which are considered to be major funds of the City. Data from the other enterprise funds is combined into a single aggregated presentation. The internal service funds are also combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the non-major enterprise funds and internal service funds is provided in the form of combining statements elsewhere in this report.

The basic proprietary fund financial statements can be found on pages 45-55 of this report.

Fiduciary Funds: The City maintains custodial funds and a Private-purpose Trust Fund (Successor Agency to the Redding Redevelopment Agency). These funds are used to account for resources held for other parties outside the government. These funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs.

The basic fiduciary fund financial statements can be found on pages 57-59 of this report.

Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 61-144 of this report.

Other Information: In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information, supplementary information, statistical information and certain other supplemental historical information that may be useful to the users of the City’s financial statements. This information can be found in the last four sections of this report.

Packet Pg. 305 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
10 FINANCIAL HIGHLIGHTS
Government-Wide Financial Highlights
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $816 million (See Analysis of Statement of Activities and Changes in Net Position on page 12).
 $728 million represents the City’s investment in capital assets, less (1) accumulated depreciation, (2) related outstanding debt used to acquire those assets, and (3) related deferred charge on refunding.  $133 million is available for the City’s ongoing obligations related to programs with external restrictions.  ($44.8) million represents the unrestricted deficit and is primarily the result of the City’s unfunded pension and Other Postemployment Benefits (OPEB) obligations.
 The City’s total debt decreased by $17.6 million (net of bond premiums and discount and excluding deferred charges) during the year ending June 30, 2023. The City made $18.8 million in regular scheduled debt payments. The City added $1.2 million in lease, subscription and loan debt.  The City’s total net position increased by $59 million over the prior year.  The $41.8 million increase in net investment in capital assets represents the capital assets less accumulated depreciation/amortization, outstanding principal of capital debt, original issue premiums on outstanding capital debt, related deferred inflows, plus original issue discounts on outstanding capital debt, related deferred outflows.
 The $26 million increase in restricted net position represents the change in resources that are subject to external restrictions on their use.
 The ($8.9) million decrease in unrestricted net position is the change in resources available to fund City programs to citizens and debt obligations to creditors.

Governmental Funds Financial Highlights
The City’s governmental funds’ combined ending fund balance of $115 million was an increase of $12.4 million from the prior year ending fund balance of $102.6 million. Amounts available for spending include Restricted, Assigned and Unassigned Fund Balances; these totaled $111.7 million, or 97.1 percent of fund balance. Of this amount:
 $89.2 million is restricted by law or externally imposed requirements.  $7.9 million is assigned or constrained by the City Council’s ‘intent” to be used for specific purposes, but are neither restricted nor committed.
 $14.6 million is unassigned fund balance.

Packet Pg. 306 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
11 GOVERNMENT-WIDE FINANCIAL ANALYSIS
2023 2022 2023 2022 2023 2022
Dollar
Change
Percent
Change
Assets:

Current and other assets 226,005 $ 196,571 $ 262,286 $ 260,954 $ 488,291 $ 457,525 $ 30,766 $ 6.7% Capital assets, net 364,798 348,337 542,813 531,217 907,611 879,554 28,057 3.2% Total assets 590,803 544,908 805,099 792,171 1,395,902 1,337,079 58,823 4.4% Deferred outflow of resources 75,394 41,582 55,070 35,871 130,464 77,453 53,011 68.4% Liabilities:

Current liabilities 55,023 44,670 48,709 50,078 103,732 94,748 8,984 9.5% Long-term liabilities 296,980 225,073 290,089 258,105 587,069 483,178 103,891 21.5% Total liabilities 352,003 269,743 338,798 308,183 690,801 577,926 112,875 19.5% Deferred inflow of resources 7,826 45,380 11,510 34,025 19,336 79,405 (60,069) -75.6% Net position:

Net investment in capital assets 335,471 317,743 392,864 368,787 728,335 686,530 41,805 6.1% Restricted 123,734 99,800 8,922 6,782 132,656 106,582 26,074 24.5% Unrestricted (152,837) (146,176) 108,075 110,265 (44,762) (35,911) (8,851) 24.6% Total net position $ 271,367 306,368 $ 509,861 $ 485,834 $ 816,229 $ 757,201 $ 59,028 $ 7.8% Governmental
Activities
Business-Type
Activities Total Total
Summary of Net Position
(in thousands)
As noted earlier, over time, increases or decreases in Net Position may serve as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $816.2 million at the close of the current fiscal year.

Analysis of Summary of Net Position
The City’s total net position increased by 7.8% from a year ago, increasing from $757.2 million to $816.2 million.

Net position from governmental activities increased by $35.0 million or 12.9% and net position from business activities increased by $24 million or 4.9%. The $35 million in net position is primarily due to an increase in notes and intergovernmental receivables and increases in capital assets. The negative unrestricted net position at June 30, 2023 is primarily the result of the City’s unfunded pension and OPEB obligations.

The $24 million increase in net position from business-type activities is primarily due to funds being accumulated for current and future capital projects, especially in the Electric Utility Fund and Wastewater Utility Fund.

Most of the City’s net position is invested in capital assets (i.e., land, buildings, utility plants, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The restricted net position of $132.7 million represents resources that are subject to external restrictions as to how they may be used. The remaining unrestricted net position deficit of ($44.8) million experienced a negative change of $8.9 million, or 24.6%, from the prior year. This change means less resources Packet Pg. 307 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
12 are available to fund the City’s ongoing obligations to its citizens and creditors. The majority of the negative unrestricted net position is primarily the result of the City’s unfunded pension and OPEB obligations. 2023 2022 2023 2022 2023 2022
Dollar
Change
Percent
Change
Revenues
Program revenues
Charges for services 21,599 $ 18,951 $ 290,901 $ 251,057 $ 312,500 $ 270,008 $ 42,492 $ 15.7% Operating grants and contributions 62,613 26,365 8,021 11,231 70,634 37,596 33,038 87.9% Capital grants and contributions 23,464 18,621 13,998 5,308 37,462 23,929 13,533 56.6% Total program revenue 63,937 107,676 312,920 267,596 420,596 331,533 89,063 26.9% General revenue
Sales tax 30,469 31,846 - - 30,469 31,846 (1,377) -4.3% Property tax 26,375 24,231 - - 26,375 24,231 2,144 8.8% Investment earnings 1,113 (2,242) 2,410 (6,125) 3,523 (8,367) 11,890 -142.1% Other 12,067 15,639 16 - 12,083 15,639 (3,556) -22.7%
Total general revenues 69,474 70,024 2,426 (6,125) 72,450 63,349 9,101 14.4% Total revenue 133,411 177,700 315,346 261,471 493,046 394,882 98,164 24.9% Expenses:

General government 11,843 7,445 - - 11,843 7,445 4,398 59.1% Police 46,860 36,227 - - 46,860 36,227 10,633 29.4%
Fire 27,823 24,061 - - 27,823 24,061 3,762 15.6%
Public works 17,061 17,139 - - 17,061 17,139 (78) -0.5% Planning 6,856 5,530 - - 6,856 5,530 1,326 24.0%
Recreation and culture 14,168 12,086 - - 14,168 12,086 2,082 17.2% Community development 24,470 11,713 - - 24,470 11,713 12,757 108.9% Interest on long-term debt 1,451 1,448 - - 1,451 1,448 3 0.2% Electric - - 187,015 158,141 187,015 158,141 28,874 18.3% Water - - 21,305 20,379 21,305 20,379 926 4.5%
Wastewater - - 27,966 24,957 27,966 24,957 3,009 12.1%
Storm drain - - 2,653 2,024 2,653 2,024 629 31.1%
Solid Waste - - 29,546 24,546 29,546 24,546 5,000 20.4% Transportation - - 13,701 13,907 13,701 13,907 (206) -1.5% Convention center - - 1,300 1,222 1,300 1,222 78 6.4%
Total expenses 115,649 150,532 283,486 245,176 434,018 360,825 73,193 20.3% 17,762 27,168 31,860 16,295 59,028 34,057 24,971 73.3%
Transfers 7,834 4,134 (7,834) (4,134) - - - 0.0%
Change in net position 21,896 35,002 24,026 12,161 59,028 34,057 24,971 73.3% Net position - beginning 249,471 271,367 485,835 473,674 757,202 723,145 34,057 4.7% Net position - ending $ 271,367 306,369 $ 509,861 $ 485,835 $ 816,230 $ 757,202 $ 59,028 $ 7.8% Increase in net position before
transfers and special item
Statement of Activities and Changes in Net Position
(in thousands)
Governmental
Activities
Business-Type
Activities Total Total
Packet Pg. 308 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
13 Governmental Activities
Revenue Highlights
Total revenues for the governmental activities were $177.7 million. The largest component of total revenue is taxes at $68.5 million, making up 38.5% of total revenue in the governmental funds. This is consistent with the nature and purpose of governmental funds, particularly in the General Fund, where programs are largely supported by general tax revenues. The largest tax revenues received by the General Fund include sales, property, and transient occupancy.

Some of the key changes in revenues are:

Sales tax decreases by 4.3% from the prior year. The decrease of $1.4 million is the result of a dynamic economy weathering the impacts of high inflationary pressure. During fiscal year 2022-23 the average inflation was 3.2% with the first half of the year being higher (7-8%) than the latter half of the year (3-6%). The Federal Reserve has responded to inflation by increasing interest rates with the goal of slowing inflation but could have a negative impact on the economy. These various economic pressures are likely causing decreases to available discretionary income used for taxable purchases. Additionally, in prior years there could have been an artificial spike resulting from the Federal Reserve’s monetary policies and government policy to stimulate the economy as a result of the impacts of COVID-19 pandemic.

Property taxes increased by 8.8% from the prior year. The $2.1 million increase is reflective of the rise in property values and the related re-assessment when properties are sold.

Transient occupancy taxes decreased by 11.8% from the prior year. The $0.97 million decrease is likely a result of the same pressures outlined in the discussion of sales tax. Transient Occupancy Tax is driven by travel to the area.

This has likely decreased as spending habits change with a slowing economy.

Operating grants and contributions increased by $36 million primarily due to an increase in operating grant revenue for Community Development of $30.7 million, including increase of $25 for housing development projects, $1.8 for homeless activities, and $3.4 for section 8 housing and Public Works of $3.8 million.

Charges for services increased by $2.6 million primarily due to an increase in Community Development fees of $1 million related to project solar rebate and an increase in General Government fees of $1.6 million related to late fees and risk program fees of $1.3 million.

Capital grants and contributions increased by $4.8 million primarily due to capital grants for Public Works.

Expense Highlights
Functional expenses for the year totaled approximately $150.5 million, an increase of $34.9 million from the prior year. The increase is a result of an increase Community Development housing projects, homeless activities and Section 8 programs. Increases in Police due to retirement payouts and becoming fully staffed.

The largest component of total expenses was for public safety (police and fire), representing $74.7 million or

49.6% of the total. A large portion of public safety costs are funded from general revenues, primarily taxes. In contrast, Public Works expenses, which total $17.1 million, are funded largely from restricted revenues, including gas tax and federal and state grants. These resources pay for street maintenance and improvements, street, sweeping, transportation planning and other related costs.

Packet Pg. 309 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
14 The following graphs show an illustrative picture of where the City funds come from and where they are spent:

Police

31.1%
Fire

18.5%
Community
Development

16.3%
Public Works

11.3%
Recreation and Culture

9.4%
General Government

7.9%
Planning

4.6% Interest on L/T Debt

1.0%
Expense by Source - Governmental Activities
Capital Grants and
Contributions

13.2%
Sales Tax

17.1%
Property Tax

14.8%
Other Taxes

6.5%
Other

0.2%
Investment Earnings

0.6%
Charges by Service

12.2%
Operating Grants and
Contributions

35.2%
Revenues by Source - Governmental Activities
Packet Pg. 310 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
15 Business-Type Activities
Business-type activities increased the City’s net position by $24.0 million. Key elements of this increase are as follows:
 Revenues exceed expenses for electric, water, wastewater, solid waste and storm drain as funds are being accumulated for current and future capital projects.  Expenses exceed revenues for the convention center as the operating transfer from the general fund is not shown as revenue.

The following schedule shows business-type activities revenues and expenses:
2023 2022 2023 2022 2023 2022
Electric 201,023 $ 162,911 $ 187,015 $ 158,141 $ 14,008 $ 4,770 $ Water 27,907 26,820 21,305 20,379 6,602 6,441
Wastewater 36,194 34,011 27,966 24,958 8,228 9,053
Storm drainage 3,872 2,473 2,653 2,024 1,219 449
Solid waste 27,167 26,895 29,546 24,546 (2,379) 2,349
Transportation 16,546 14,291 13,701 13,907 2,845 384
Convention center 212 196 1,300 1,222 (1,088) (1,026)
Investment earnings 2,409 (6,125) - - 2,409 (6,125)
Transfers (7,834) (4,134) - - (7,834) (4,134)
Other 16 - - - 16 -
Total 307,512 $ 257,338 $ 283,486 $ 245,177 $ 24,026 $ 12,161 $ Revenue Expense
Changes in
Net Position
Revenues, Transfers and Expenditures - Business-Type Activities (in thousands)
Charges for Services

92.3%
Investment Earnings

0.8%
Capital Grants &
Contributions

4.4%
Operating Grants &
Contributions

2.5%
Revenues by Source - Business-Type Activities
Packet Pg. 311 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
16 Typically, business-type activities charge customers for the services provided and the related necessary capital costs. As can be seen from the above graph, charges for services make up the vast majority (92.3%) of the revenues of the business-type activities.

Analysis of the Governmental Fund Balances
Nonspendable Restricted Assigned Unassigned Total
General fund $ 605 3,283 $ 7,924 $ 14,750 $ 26,562 $
Major funds
Capital projects - 1,496 - - 1,496
Community Development 1 57,297 - - 57,298
Other governmental funds 29,854 77 - (192) 29,739
$ 89,252 3,361 $ 7,924 $ 14,558 $ 115,095 $
Governmental Fund Balances
(in thousands)
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources (modified accrual basis of accounting). Such information is useful in assessing the City’s financing requirements. In particular, total fund balance less the non-spendable portion is a useful measure of a government’s resources available for spending at the end of the fiscal year.

At June 30, 2023, the City’s governmental funds reported total fund balance of $115.1 million, an increase of $12.4 million in comparison with the prior year’s total ending fund balance. The components of total fund balance are as follows (for more information see Note 20 – Fund Balances):
 Non-spendable Fund Balance, $3.4 million are amounts that are not spendable in form, or are legally or contractually required to be maintained intact, and are made up of (1) prepaid expenses, (2) inventories, and (3) endowments. $2 million for fire trucks is included in prepaid expenses for fire trucks ordered but not received at fiscal year ended June 30, 2023.  Restricted Fund Balance, $89.2 million consists of amounts with constraints put on their use by creditors, grantors, contributors, laws, regulations or enabling legislation. Examples of restrictions on funds are those for (1) purpose of fund, (2) reserves associated with issued bonds, and (3) grants for capital outlay.  Assigned Fund Balance, $7.9 million are resources that are set aside for a particular purpose, and are made up of amounts that reflect resources for specific purposes such as (1) encumbrances, and (2) future expenditures/contingencies.
 Unassigned Fund Balance, $14.6 million represents the residual balance for the City’s governmental funds.

Packet Pg. 312 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
17 General Fund
The General Fund is the chief operating fund of the City. At June 30, 2023, unassigned fund balance was $14.8 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 13% of the total General Fund expenditures, while total fund balance represents 23.3% of total General Fund expenditures.

The fund balance of the City’s General Fund decreased by $2.2 million during the year ended June 30, 2023.

General Fund revenues increased $3.3 million, and expenditures increased by $7.0 million from fiscal year-end 2022 to 2023. The increase in revenue was primarily due to increases in property tax revenue of $2.1 million (8.5%). Tax rates were not changed during the year. The increase is also contributed to late fees of $1.6 million.

The $7 million increase in expenditures is primarily due to an increase in expenditures for Public Safety of $4.5 million and General Government of $2.0 million. The expenditures contributing to the increase are primarily due to increases in staffing costs and an ARAP grant expenditure for the Block 7 project of $2.4 million.

Other financing sources increased by $3.2 million. This is primarily due to an increase in net transfers of $4.5 million and decrease in gains on sale of assets of $1.3 million.

General Fund
2023 2022
Dollar
Change
Percent
Change
Total revenue 94,350 $ 91,020 $ 3,330 $ 3.7%
Total expenditures 113,759 106,777 6,982 6.5%
Excess (deficiency) of revenues (19,409) (15,757) (3,652) 23.2% Other financing sources (uses) 17,246 13,975 3,271 23.4% Net change in fund balance (2,163) (1,782) (381) 21.4%
Fund balance
Beginning of year 28,725 30,507 (1,782) -5.8%
End of year 26,562 $ 28,725 $ (2,163) $ -7.5%
Governmental Funds
Summary of Revenues, Expenditures, and Changes in Fund Balances (in thousands)
Packet Pg. 313 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
18 Capital Project Fund
The Capital Project Fund accounts for the financing and construction activities of the City. On June 30, 2023, the restricted fund balance was $1.5 million. Restricted fund balance represents 8.2% of the total Capital Project Funds expenditures.

The fund balance of the City’s Capital Project Fund decreased $0.2 million during the year ended June 30, 2023 primarily due to an increase in capital outlay.

Capital Project Fund revenues increased $5.5 million and expenditures increased $0.3 million. The increase in revenue was primarily due to an increase in state grant revenue and the increase in expenditures was the result of increased capital outlay for construction project activity.

Capital Projects Fund
2023 2022
Dollar
Change
Percent
Change
Total revenue 17,989 $ 12,489 $ 5,500 $ 44.0%
Total expenditures 18,172 17,840 332 1.9%
Excess (deficiency) of revenues (183) (5,351) 5,168 -96.6% Other financing sources (uses) (33) (122) 89 -73.0%
Net change in fund balance (216) (5,473) 5,257 -96.1%
Fund balance
Beginning of year 1,712 7,185 (5,473) -76.2%
End of year 1,496 $ 1,712 $ (216) $ -12.6%
Governmental Funds
Summary of Revenues, Expenditures, and Changes in Fund Balances (in thousands)
Packet Pg. 314 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
19 Community Development Fund
The Community Development Fund accounts for the financing and rehabilitation of homes and public facilities, financing of multifamily housing, and homeless services of the City. On June 30, 2023, the restricted fund balance was $57.3 million. Restricted fund balance represents 542% of the total Community Development Fund expenditures.

The fund balance of the City’s Community Development fund increased $12.8 million during the year ended June 30, 2023 primarily due to the increase in notes receivable.

Community Development Fund revenues increased $20.9 million and expenditures increased $9.0 million. The increase in revenue was primarily due to an increase in grant revenue and the increase in expenditures was the result of development expenditures and homeless services.

Community Development
2023 2022
Dollar
Change
Percent
Change
Total revenue 23,379 $ 2,466 $ 20,913 $ 848.1%
Total expenditures 10,558 1,530 9,028 590.1%
Excess (deficiency) of revenues 12,821 936 11,885 1269.8% Other financing sources (uses) - - - 0.0%
Net change in fund balance 12,821 936 11,885 1269.8%
Fund balance
Beginning of year 44,477 43,541 936 2.1%
End of year 57,298 $ 44,477 $ 12,821 $ 28.8%
Governmental Funds
Summary of Revenues, Expenditures, and Changes in Fund Balances (in thousands)
Packet Pg. 315 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
20 Analysis of Proprietary Funds
Proprietary Funds: The City’s proprietary funds provide the same type of information found in the governmentwide financial statements, but in more detail. The following schedule shows the changes in net position of the major proprietary funds and restricted and unrestricted portions of net position of the major proprietary funds of the City.

Net Position
June 30, 2022
Changes in
Net Position
Net Position
June 30, 2023
Electric Utility 130,373 $ 5,239 $ 135,612 $
Water Utility 118,830 6,886 125,716
Wastewater Utility 161,368 8,261 169,629
Solid Waste Collection/Disposal 22,414 (1,783) 20,631
Changes in Net Position - Major Proprietary Funds
(in thousands)
Net
Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
Electric Utility 95,974 $ - $ 39,638 $ 135,612 $
Water Utility 72,865 5,065 47,786 125,716
Wastewater Utility 135,147 537 33,945 169,629
Solid Waste Collection/Disposal 19,249 - 1,382 20,631
Net Position - Restricted and Unrestricted
Major Proprietary Funds as of June 30, 2023
(in thousands)
The factors affecting the above changes in net position and other factors regarding the proprietary funds have already been addressed in the discussion of the City’s business-type activities

Packet Pg. 316 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
21 General Fund Budgetary Highlights
The City adopts two one-year budgets every other year. The fiscal year ending June 30, 2023, was the second year of the two-year budget process. Differences between the original General Fund budget and the amended General Fund budget expenditures are shown below:

Original Amended
Increase
(Decrease)
General government 13,220 $ 15,009 $ 1,789 $
Public safety:

Police 43,420 52,734 9,314
Fire 24,337 29,101 4,764
Public works 20,372 23,370 2,998
Planning 11,078 8,803 (2,275)
Recreation and culture 12,122 10,482 (1,640)
Principal payments 1,749 1,918 169
Interest payments and bond costs 872 902 30
Total expenditures 127,170 $ 142,319 $ 15,149 $
General Fund Original and Amended Budget
(in thousands)
As shown in the previous table, the General Fund’s original budget was amended to include increase of $15.1 million or approximately 11.8%. The reasons for this increase are as follows:
 The Planning budget decreased by $2.3 million primarily due to transferring $2.5 million in ARPA grant funding to public safety.
 The Police budget increased by $9.3 million primarily due to grants and grant type agreements approved and received after the budget was originally adopted. Of these grants $4.0 million are ARPA grants budgeted for park rangers, the police 8th beat, and police vehicles. It is the City policy not to include grant expenditures in the original adopted budget if grant approval has not been finalized. These grants were for traffic enforcement, police officers and school resource officers along with other Police related activities.  The General Government budget increased $1.8 million primarily due to $0.7 million in projects, including improvements of council chambers, tiger field, and downtown street maintenance. Also, increases in fixed charges, staff costs and operating materials of $1 million.  The Recreation and Culture budget decreased by $1.6 million primarily due to transferring $2.4 million in ARPA grant funding to Community Development.
 The Fire budget increased by $4.7 million primarily due to $1.5 million in operating grant funding for fire vehicles and fire risk reduction and $1.7 in equipment.  The Public works budget increased by $3.0 million primarily due to $2.1 million increase in the Bechelli project.
 The City does not include rolling stock appropriations in its original budget. It is a Council policy to maintain a rolling stock fund and equipment replacement fund separate from the General Fund from which departments, with the City Manager approval, can transfer funds to the General Fund and amend the adopted budget for the transfers. During the year departments’ budgets were increased by $2.0 million due to rolling stock transfers and $0.2 million due to equipment replacement transfers.

Packet Pg. 317 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
22 Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2023, totaled $907.6 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, utility plants, collections, generation, distributions and transmissions systems, improvements, machinery and equipment, park facilities, roads, bridges and right-to-use leases and subscriptions. The City’s total investment in capital assets for the current year increased by $28.1 million. Investment in capital assets for governmental activities increased $16.5 million or 4.7% and business-type activities increased $7.8 million or

1.5%.

Major capital asset events during the current fiscal year included the following:
 Developers added an estimated $10.2 million of water, wastewater, electric, storm drainage improvements, parks, streets, sidewalks and traffic signals.
 The City added $6.4 million on Bechelli Active Transportation Project (ATP), $6.9 million on the South Bonnyview at I-5 and Bechelli project, $1 million on Girvan Road railroad crossing improvements, $1 million on Pedestrian Crossing improvements, $2.2 million on other Street improvements, and $0.2 million on bike paths/lane improvements.
 Electric Utility added $7.9 million on system improvements, $0.8 million on vehicles, $2 million on an emergency communications platform and $0.9 million on Unit 4 turbine overhaul.  Water Utility added $1.7 million on water line replacement projects, $1.5 million on the Masonic to Hilltop water main project, $0.5 million on the pump house replacement, $0.4 million in meters and $0.7 million on vehicles.
 Wastewater Utility added $4.4 million on Magnolia Area improvements, $1.7 million on Biosolid Pyrolysis, $0.6 million on Woodacre Drive replacement, and $1.2 million on other improvement projects.  Storm Drainage Utility added $0.7 million on Bechelli ATP improvements and $0.6 million on Hollow Lane box culvert.
 Solid Waste added $2.6 million on vehicles and heavy equipment.  Airport added $3.9 million on Terminal Loop Construction.  Fire added $1.1 million in vehicles. Police added $0.7 million in vehicles and $1.4 million on the radio communication equipment project.
 Parks added $1 million in Redding Aquatic Center Improvements and $1.5 million in City other park improvements.
 The City deleted assets, net depreciation, of $0.4 million in plant assets, and $0.5 million in vehicles.

Packet Pg. 318 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
23 Balance Balance Dollar Percent
June 30, 2023 June 30, 2022 Change Change
Governmental activities:

Capital assets, not being depreciated
Land 36,427 $ 36,207 $ 22 $ 0.6% 0
Construction in progress 67,370 43,134 24,236 56.2%
Capital assets, being depreciated
Buildings 22,881 24,905 (2,024) -8.1%
Improvements other than buildings 29,261 32,554 (3,293) -10.1% Infrastructure 197,852 202,404 (4,552) -2.2%
Automotive equipment 7,864 6,998 866 12.4%
Furnishings and equipment 2,408 1,795 613 34.2%
Assets under lease:

Improvements 43 51 (8) -15.7%
Automotive equipment 427 290 137 47.2%
Subscriptions 265 - 265 100.0%
Governmental activities capital assets, net $ 348,338 364,798 $ 16,460 $ 4.7% Business-type activities:

Capital assets, not being depreciated
Land 20,394 $ 20,394 $ - $ 0.0%
Construction in progress 55,200 34,488 20,712 60.1%
Capital assets, being depreciated
Utility plants 388,322 394,488 (6,166) -1.6%
Buildings 26,433 28,623 (2,190) -7.7%
Improvements other than buildings 21,152 23,034 (1,882) -8.2% Automotive equipment 19,529 20,565 (1,036) -5.0%
Furnishings and equipment 7,890 9,564 (1,674) -17.5%
Assets under lease:

Equipment 130 61 69 113.1%
Subscriptions 3,763 - 3,763 100.0%
Business-type activities capital assets, net $ 531,217 542,813 $ 7,833 $ 1.5% Total entity-wide capital assets $ 879,555 907,611 $ 28,056 $ 3.2% See Note 6 to the Financial Statements for additional information regarding capital assets.

Changes in Capital Assets, net Depreciation
(in thousands)
Packet Pg. 319 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
24 Long Term Debt
The following schedule shows the changes in long-term debt for the year not including bond discounts and bond premiums (amounts are in thousands).

Balance
June 30, 2022
Additions/
Transfers Reductions
Balance
June 30, 2023
Governmental activities:

Subscriptions payable 100 $ 249 $ 76 $ 273 $
Leases payable 338 217 129 426
Lease revenue bonds 27,639 - 2,034 25,605
Loan - 648 74 574
Total government activities 28,077 1,114 2,313 26,878
Business-type activities:

Subscriptions payable 4,791 15 975 3,831
Leases payable 65 141 75 131
Revenue bonds 145,761 - 14,691 131,070
State loan payable 1,128 - 793 335
Certificates of participation - - - -
Total business-type activities 151,745 156 16,534 135,367 Total outstanding long-term debt 179,822 $ 1,270 $ 18,847 $ 162,245 $ Changes in Long Term Debt
(in thousands)
The City’s total debt decreased by $17.5 million (net of bond premiums and discounts excluding deferred charges) during the fiscal year ending June 30, 2023. The City made $18.8 million in regular scheduled debt payments. The lease obligations increased by $0.53 million and subscription obligations increased by $4.1 million.

Currently, the City’s legal debt margin is $287 million. However, this relates only to general obligation type bonds. Other factors such as available revenues, special assessment pledges, etc. will affect the City’s actual capacity to issue future debt.

Additional information on the City’s long-term debt can be found in Note 10 on pages 93-97 of this report.

Deferred Outflows of Resources & Deferred Inflows of Resources Deferred Outflows of Resources
This classification balance, although similar to “assets,” is set apart because these items do not meet the technical definition of being a City asset on the date of these financial statements. In other words, these amounts are not available to pay liabilities in the way assets are available. When all the recognition criteria are met, the deferred outflow of resources will become an expense/expenditure.

There are two primary components of the deferred outflows as reported. The first component is related to the implementation of GASB Statement No. 68 and GASB Statement No. 71 for pension liability reporting. GASB 71 requires that contributions made during the fiscal year to the retirement system be reported as deferred Packet Pg. 320 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
25 outflows of resources. Other potential deferred outflows of resources are attributable to the various components that impact pension changes and can include investment earnings, changes due to actuarial assumptions, and differences between expected or actual experience.

The second component of the deferred outflows of resources is related to the implementation of GASB Statement 75 for Other Post-Employment Benefits (OPEB). GASB 75, much like GASB 68 and 71, requires the recognition of deferred outflows of resources. The deferred outflows of resources are attributable to the various components that impact OPEB liability and can include contributions made after the measurement date (current year contributions), investment earnings, changes due to actuarial assumptions, and the difference between expected and actual experience.

Deferred Inflows of Resources
Deferred inflows of resources are the counterpart to deferred outflows of resources on the Statement of Net Position. Deferred inflows of resources are not technically liabilities of the City as of the date of the financial statements. When all the recognition criteria are met, the deferred inflow of resources will become revenue or an increase to net position.

Deferred inflows of resources can also be impacted by the implementation of GASB 68 for pension liability reporting and GASB 75 for OPEB. Deferred inflows of resources related to pensions represent the net amount attributable to the various components that impact pension changes, and can include investment earnings, changes due to actuarial assumptions, and differences between expected or actual experience. Deferred inflows related to OPEB can include the same components.

Deferred inflows of resources are also impacted by the implementation of GASB 87 for lease reporting. Deferred inflows of resources related to leases represent the deferred revenue related to the present value of lease receivable.

Additional information pertaining to deferred outflows and inflows for pensions and OPEB can be found in notes 18 and 19.

Economic Factors and Next Year’s Budgets and Rates
 The City of Redding has experienced a decrease in population since 2020 of less than one percent per year while the unemployment rate has decreased from 10% in 2020 to 5% in 2023.  Inflationary trends in the region compare favorably to national indices.  Overall tax revenue for the City’s General Fund decreased by $0.9 million during the year. This was primarily due to the increase in property tax ($2.1 million) and decreases in sales tax ($1.4 million), cannabis tax ($0.6 million), and transient occupancy tax ($1 million).  The City’s General Fund two most major tax revenue sources are sales tax and property tax. Sales tax revenue is budgeted to increase by 2.5% in fiscal year 2023-24. Property tax revenue is budgeted to increase by 3% in fiscal year 2023-24.
 The City’s residential building activity has slowed from the record highs of the last few years but appears to be leveling off into the second half of fiscal year 2023-24. Commercial building activity continues to be on pace with previous fiscal year. Overall, building activity is tapering off, but is expected to maintain moderate levels through the end of fiscal year 2023-24.

Packet Pg. 321 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
26  The future economic activity is uncertain at this time as many experts are predicting a recession in calendar year 2023. The duration and severity of the recession is uncertain as forecasts are from early to late 2023 with predictions from a moderate recession to a painful recession.

All of these factors were considered in preparing and updating the City’s budget for the 2022-23 fiscal year.

During the current fiscal year fund balance in the General Fund decreased by $2.2 million to $26.6 million. The City of Redding has a City Council policy that requires major funds, including the General Fund, to prepare and maintain 10-year financial plans that maintain a minimum 10% cash reserve for all years of the plan. The City Council passed a 10-year Financial Plan on June 20, 2023 which maintains this standard for all years. The fund balance is different than cash, which is used as the basis of measurement for the City Council policy (see Note 1 for definitions of fund balance and cash). Any changes to fund balance associated with changes in cash will be analyzed and updated with future revisions to the City of Redding General Fund 10-year plan.

The Electric, Water, Wastewater, and Solid Waste rates will increase either as approved by City Council or at rates proposed to City Council. The current rates for Water, Wastewater and Solid Waste were adopted by City Council on February 4, 2020. The current Electric rates were adopted by City Council on December 7, 2021.

Request for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. This report can be found on the City of Redding website, www.cityofredding.gov under Departments, under Finance Department. Questions concerning any information provided in this report or request for additional financial information should be directed to:

The City of Redding - Finance Department
777 Cypress Avenue
Redding, CA 96001
Packet Pg. 322 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023)

BASIC FINANCIAL

STATEMENTS
27 Packet Pg. 323 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) 28 This page intentionally left blank
Packet Pg. 324 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023)

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
29 Packet Pg. 325 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 75,728,479 $ 188,855,923 $ 264,584,402 $ Receivables:

Interest 5,610,680 1,043,750 6,654,430
Accounts, net 2,038,573 22,840,453 24,879,026
Lease 354,147 794,272 1,148,419
Taxes 6,844,361 - 6,844,361
Intergovernmental 31,726,455 7,224,960 38,951,415
Notes 78,985,207 90,688 79,075,895
Special assessments 318,735 - 318,735
Other 746,625 - 746,625
Inventories 695,047 12,429,055 13,124,102
Prepaid items 4,414,809 1,622,288 6,037,097
Deposits - 393,200 393,200
Total current assets 235,294,589 207,463,118 442,757,707 Noncurrent assets:

Internal balances 15,308,550 (15,308,550) -
Restricted assets:

Cash and investments 1,154,876 12,835,696 13,990,572
Interest receivable 55 66 121
Lease receivable, net 2,079,175 8,309,466 10,388,641
Capital assets:

Land and construction in progress 103,796,691 75,594,286 179,390,977 Depreciable capital assets, net 261,000,853 467,218,673 728,219,526 Investment in JPA - 7,584,638 7,584,638
Storage base gas - 13,570,000 13,570,000
Total noncurrent assets 569,804,275 383,340,200 953,144,475 Total assets 805,098,864 590,803,318 1,395,902,182

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding bonds or debt 172,591 6,364,047 6,536,638 Deferred outflows related to other post employment benefits 12,4 8,584,258 82,718 21,066,976 Deferred outflows related to pensions 62,738,976 40,122,422 102,861,398 Total deferred outflows of resources 55,070,727 75,394,285 130,465,012 (Continued)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Net Position
June 30, 2023
Primary Government
30 Packet Pg. 326 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 14,314,157 9,285,939 23,600,096
Accrued liabilities 1,919,418 1,438,474 3,357,892
Intergovernmental payable 1,463,804 3,635,377 5,099,181 Accrued interest payable 321,355 526,783 848,138
Unearned revenue 19,561,770 2,318,053 21,879,823
Deposits 281,350 9,884,838 10,166,188
Accounts payable from restricted assets 24,830 - 24,830 Landfill closing costs, due within one year - 183,640 183,640 Claims and judgements payable, due within one year 8,222,185 - 8,222,185 Compensated absences, due within one year 4,961,543 3,403,589 8,365,132 Long-term debt, due within one year 2,162,338 16,801,322 18,963,660 Aggregate other post employment benefits liability 1,790,397 1,231,241 3,021,638 Total current liabilities 48,709,256 55,023,147 103,732,403 Noncurrent liabilities:

Intergovernmental payable, due in more than one year 116,994 - 116,994 Landfill closing costs, due in more than one year - 2,581,197 2,581,197 Claims and judgements payable, due in more than one year 10,295, - 055 10,295,055 Accrued compensated absences, due in more than one year 9,425,42 6,958,544 2 16,383,966 Accrued liabilities, due in more than one year - 447,705 447,705 Long-term debt, due in more than one year 27,418,954 139,536,881 166,955,835 Aggregate other post employment benefits liability 28,763,107 19,780,147 48,543,254 Aggregate net pension liability 220,960,810 120,784,127 341,744,937 Total noncurrent liabilities 290,088,601 296,980,342 587,068,943 Total liabilities 338,797,857 352,003,489 690,801,346

DEFFERED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 2,715 1,867,303 ,326 4,582,629 Deferred inflows related to pensions 2,676,816 539,347 3,216,163 Deferred inflows related to leases 2,433,322 9,103,738 11,537,060 Total deferred inflows of resources 11,510,388 7,825,464 19,335,852

NET POSITION
Net investment in capital assets 335,471,207 392,864,351 728,335,558 Restricted for:

Capital outlay - 8,921,648 8,921,648
Debt service 678,034 - 678,034
Housing 19,210,255 - 19,210,255
Community development 68,588,939 - 68,588,939
Public works 26,880,146 - 26,880,146
Public safety 1,141,237 - 1,141,237
Community services 5,505,184 - 5,505,184
Other 1,731,022 - 1,731,022
Total restricted 123,734,817 8,921,648 132,656,465
Unrestricted (deficit) (152,837,374) 108,075,347 (44,762,027) Total net position $ 509,861,346 306,368,650 $ 816,229,996 $ (Concluded)
See accompanying Notes to the Basic Financial Statements.

Primary Government
City of Redding
Statement of Net Position (Continued)
June 30, 2023
31 Packet Pg. 327 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Operating Capital Total
Charges for Grants and Grants and Program
Functions / Programs Expenses Services Contributions Contributions Revenues Primary government:

Governmental activities:

General government $ 8,075,361 11,842,912 $ 2,773,910 $ - $ 10,849,271 $ Police 2,290,496 46,859,911 2,127,587 12,159 4,430,242
Fire 888,854 27,823,146 186,099 793,237 1,868,190
Public works 1,196,177 17,061,623 12,176,758 18,730,452 32,103,387 Planning 5,392,509 6,855,776 428,061 - 5,820,570
Recreation and culture 2,450,295 14,167,809 695,474 3,927,904 7,073,673 Community development 1,305,212 24,470,351 44,225,092 - 45,530,304 Interest on long-term debt 1,450,653 - - - -
Total governmental activities 21,598,904 150,532,181 62,612,981 23,463,752 107,675,637 Business-type activities:

Electric 187,014,653 199,349,597 7,276 1,666,030 201,022,903 Water 26,106,650 21,304,950 - 1,800,133 27,906,783
Wastewater 33,662,337 27,965,652 1,673,885 857,485 36,193,707 Storm drainage 2,653,578 2,238,207 - 1,633,321 3,871,528 Solid waste 29,546,236 27,086,157 81,154 - 27,167,311
Transportation 13,700,891 2,246,283 6,259,360 8,040,840 16,546,483 Convention center 1,299,789 211,767 - - 211,767
Total business-type activities 290,900,998 283,485,749 8,021,675 13,997,809 312,920,482 Total primary government $ 312,499,902 434,017,930 $ 70,634,656 $ 37,461,561 $ 420,596,119 $ (Continued)
See accompanying Notes to the Basic Financial Statements.

Program Revenues
City of Redding
Statement of Activities and Changes in Net Position
For the Year Ended June 30, 2023
32 Packet Pg. 328 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Governmental Business-Type
Functions / Programs Activities Activities Total
Primary government:

Governmental activities:

General government $ - (993,641) $ (993,641) $
Police - (42,429,669) (42,429,669)
Fire - (25,954,956) (25,954,956)
Public works - 15,041,764 15,041,764
Planning - (1,035,206) (1,035,206)
Recreation and culture - (7,094,136) (7,094,136)
Community development - 21,059,953 21,059,953
Interest on long-term debt (1,450,653) - (1,450,653)
Total governmental activities - (42,856,544) (42,856,544) Business-type activities:

Electric - 14,008,250 14,008,250
Water 6,601,833 - 6,601,833
Wastewater 8,228,055 - 8,228,055
Storm drainage - 1,217,950 1,217,950
Solid waste - (2,378,925) (2,378,925)
Transportation - 2,845,592 2,845,592
Convention center - (1,088,022) (1,088,022)
Total business-type activities 29,434,733 - 29,434,733
Total primary government 29,434,733 (42,856,544) (13,421,811) General revenues and transfers:

Taxes:

Property taxes, levied for general purpose 26,375,135 - 26,375,135 Transient occupancy taxes 7,293,033 - 7,293,033
Sales taxes 30,469,277 - 30,469,277
Motor vehicle taxes 96,183 - 96,183
Franchise taxes 1,325,736 - 1,325,736
Other taxes 2,912,615 - 2,912,615
Total taxes 68,471,979 - 68,471,979
Investment income (loss) 1,112,841 2,409,343 3,522,184
Other 200,627 - 200,627
Gain (Loss) on sale of assets 239,117 16,275 255,392
Transfers (7,833,896) 7,833,896 -
Total general revenues and transfers (5,408,278) 77,858,460 72,450,182 Changes in net position 24,026,455 35,001,916 59,028,371 Net position:

Beginning of year 271,366,734 485,834,891 757,201,625
End of year 306,368,650 $ 509,861,346 $ 816,229,996 $
(Concluded)
See accompanying Notes to the Basic Financial Statements. and Changes in Net Position
Net (Expenses) Revenues
City of Redding
Statement of Activities and Changes in Net Position (Continued) For the Year Ended June 30, 2023
33 Packet Pg. 329 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) This page intentionally left blank
34 Packet Pg. 330 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023)

FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
35 Packet Pg. 331 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) This page intentionally left blank
36 Packet Pg. 332 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023)

GOVERNMENTAL FUND

FINANCIAL STATEMENTS
This fund is the general operating fund of the City which accounts for all financial resources except those required to be accounted for in another fund.

Community Development Fund
General Capital Projects Fund
General Fund
This fund was established to account for financing and rehabilitation of homes and public facilities, homeless services and the financing of multifamily housing. Financing is provided by Federal Department of Housing and Urban Development and the California Department of Housing and Community Development
This fund was established to account for the financing and construction activities of the general government.
37 Packet Pg. 333 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) General Community Non-Major Total
General Capital Projects Development Governmental Governmental Fund Fund Fund Funds Funds
ASSETS
Cash and investments 29,881,436 $ 5,456,766 $ 6,135,048 $ 16,094,003 $ 57,567,253 $ Accounts receivable, net 1,835,780 4,586 400 44,145 1,884,911 Lease receivable 2,433,322 - - - 2,433,322
Intergovernmental receivable 1,396,955 19,126,736 8,745,205 2,457,282 31,726,178 Interest receivable 171,821 21,627 2,701,862 2,616,785 5,512,095 Taxes receivable 6,844,361 - - - 6,844,361
Other receivable 714,595 - 16,579 15,451 746,625
Due from other funds 5,815,600 - - - 5,815,600
Prepaid items 2,157,218 - 508 77,069 2,234,795
Inventories 218,079 - - - 218,079
Restricted assets:

Cash and investments 909,152 13,959 - 231,765 1,154,876 Interest receivable 3 52 - - 55
Interfund receivable 25,000 - - - 25,000
Advances to other funds 6,250 - - - 6,250
Special assessments receivable - - - 318,735 318,735
Notes receivable - - 63,749,090 15,236,117 78,985,207
Total assets 24,623,726 52,409,572 81,348,692 37,091,352 195,473,342 (Continued)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Balance Sheet
Governmental Funds
June 30, 2023
38 Packet Pg. 334 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) General Community Non-Major Total
General Capital Projects Development Governmental Governmental Fund Fund Fund Funds Funds

LIABILITIES
Accounts payable 2,524,435 3,001,313 7,560,910 122,171 13,208,829 Accrued liabilities 1,468,670 34,992 29,570 47,200 1,580,432 Intergovernmental payable 414,363 - 14,912 10,729 440,004 Due to other funds - - - 82,385 82,385
Accounts payable from restricted assets - - - 24,830 24,830 Interfund payable - - 3,146,454 - 3,146,454
Unearned revenue 12,954,462 994,529 2,007,399 3,415,640 19,372,030 Deposits 48,585 - - 232,765 281,350
Advances from other funds 4,006,270 - - 420,694 4,426,964 Total liabilities 4,030,834 21,416,785 12,759,245 4,356,414 42,563,278

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,997,503 19,097,241 11,291,090 2,995,520 35,381,354 Leases 2,433,322 - - - 2,433,322
Total deferred inflows of resources: 19,097,241 4,430,825 11,291,090 2,995,520 37,814,676 Fund balances:

Nonspendable 3,283,430 - 508 77,069 3,361,007
Restricted 604,458 1,495,651 57,297,849 29,853,771 89,251,729 Assigned 7,923,890 - - - 7,923,890
Unassigned 14,750,184 - - (191,422) 14,558,762
Total fund balances 1,495,651 26,561,962 57,298,357 29,739,418 115,095,388 Total liabilities, deferred inflows of
resources and fund balances $ 24,623,726 52,409,572 $ 81,348,692 $ 37,091,352 $ 195,473,342 $ (Concluded)
See accompanying Notes to the Basic Financial Statements.

Balance Sheet (Continued)
Governmental Funds
June 30, 2023
City of Redding
39 Packet Pg. 335 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) This page intentionally left blank
40 Packet Pg. 336 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Statement of Internal
Net Position Service Funds Net
$ 115,095,388

Capital assets (net) have not been included as financial resources in governmental fund activity. $ 2,073,801 364,797,544 $ 362,723,743 Deferred charges have not been included as financial resources in governmental fund activity. - 172,591 172,591 Deferred outflows related to pensions and OPEB have not been included in governmental fund activity. 10,147,215 75,221,694 65,074,479
Long-term debt that has not been included in the governmental fund activity. (227,207) (29,581,292) (29,354,085) Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. - (321,355) (321,355)
The net other post employment benefit obligation has not been reported in the governmental funds. (4,739,585) (30,553,504) (25,813,919) Net pension liability is not due and payable in the current period and therefore is not reported in the fund financial statements. (25,036,061) (220,960,810) (195,924,749) Revenue reported as unavailable revenue in the governmental funds is recorded as revenue in the statement of activities. - 35,381,354 35,381,354
Deferred inflows related to pensions and OPEB have not been included in governmental fund activity. (524,404) (5,392,142) (4,867,738)
Internal service fund net position included in the governmental activities on the statement of activities. 3,424,318 - (3,424,318)
Accrued vacation and other leave not reported in governmental funds, but recorded as expense in the Statement of Activities. (2,014,224) (14,386,965) (12,372,741)

$ 306,368,650
See accompanying Notes to the Basic Financial Statements.

Net position of governmental activities
City of Redding
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023
Fund balances governmental funds
Amounts reported for governmental activities in the Statement of Net Position are different because:
41 Packet Pg. 337 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) General Community Non-Major Total
General Capital Projects Development Governmental Governmental Fund Fund Fund Funds Funds
REVENUES:

Property taxes 26,249,843 $ - $ - $ - $ 26,249,843 $
Sales and use taxes 30,199,056 - - 272,517 30,471,573
Other taxes 11,531,384 - - - 11,531,384
Special assessments 10,110 - - 983,939 994,049
Licenses and permits 2,390,036 - - 106,571 2,496,607
Intergovernmental revenues 6,499,493 11,083,533 18,987,296 25,647,503 62,217,825 Charges for services 4,676,990 - 165,000 1,561,266 6,403,256 Fines, forfeitures, and penalties 1,497,514 40,000 - 93,030 1,630,544 Use of money and property - 8,823,765 - - 8,823,765
Net investment earnings (loss) 828,729 66,514 (93,161) 203,322 1,005,404 Other 1,642,627 6,958,885 4,160,062 170,766 12,932,340
Total revenues 17,989,257 94,349,547 23,378,872 29,038,914 164,756,590 EXPENDITURES:

Current:

General government - 10,803,116 - - 10,803,116
Community development - - 10,491,216 13,981,798 24,473,014 Public safety:

Police 43,332,841 - - 53,450 43,386,291
Fire 25,770,361 - - - 25,770,361
Public works 7,324,530 140,599 - 1,186,112 8,651,241
Planning - 6,582,099 - - 6,582,099
Recreation and culture 6,531,197 678,081 - 2,629,301 9,838,579 Capital outlay 16,614,013 10,471,609 45,000 713,310 27,843,932 Debt service:

Principal 1,870,603 285,000 - 110,367 2,265,970
Interest and fiscal charges 1,072,308 454,288 21,318 2,424 1,550,338 Total expenditures 18,171,981 113,758,664 10,557,534 18,676,762 161,164,941 Excess (deficiency) of revenues
over (under) expenditures (19,409,117) 12,821,338 (182,724) 10,362,152 3,591,649 OTHER FINANCING SOURCES (USES):

Sale of assets 239,117 - - - 239,117
Long-term debt issued - 189,326 - 675,787 865,113
Transfers in 19,693,790 - - 965,276 20,659,066
Transfers out (2,876,336) - (33,711) (9,961,536) (12,871,583) Total other financing sources (uses) 17,245,897 - (33,711) 8,891,713 (8,320,473) NET CHANGE IN FUND BALANCES (2,163,220) 12,821,338 (216,435) 2,041,679 12,483,362 Fund balances:

Beginning of year 28,725,182 1,712,086 44,477,019 27,697,739 102,612,026 End of year 26,561,962 $ 1,495,651 $ 57,298,357 $ 29,739,418 $ 115,095,388 $ See accompanying Notes to the Basic Financial Statements.

City of Redding
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2023
42 Packet Pg. 338 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Net change in fund balances - total governmental funds 12,483,36 $ 2 Governmental funds reported acquisition of capital assets as part of capital outlay expenditures. However, in the government-wide Statement of Activities and Changes in Net Position, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current period. 27,843,932
In the Statement of Activities, donated assets are reported as a capital contribution. 4,939,008 Transfer of capital assets between governmental, enterprise, and internal service funds. 6,520,312 Depreciation expense on capital assets was reported in the government-wide Statement of Activities and Changes in Net Position, but it did not require the use of current financial resources. Therefore, depreciation expense, net of internal service funds of $1,230,665 was not reported in the in governmental funds. (16,888,580) Disposal of capital assets is reported in the government-wide Statement of Activities and Changes in Net Position, but it does not require the use of current financial resources. Therefore, it is not reported as expenditures in governmental funds.
- Net book value of the assets disposed (5,392)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds. 8,833,796
In the Statement of Activities, the other post employment benefit expense that does not require the use of financial resources is not reported as revenue or expenditure. (2,685,128) Repayment of long-term liabilities was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Principal payment of long-term debt 2,265,970
Amortization of bond premium 130,904
Amortization of bond discounts (3,644)
Proceeds from debt are a financing source in the governmental funds, but a liability in the Statement of Net Position (865,113) Interest expense on long-term debt is accrued in the government-wide Statement of Activities and Changes in Net Position. The following amount represented the change in accrued interest from the prior year and amortization of interest expense. (16,389)
Compensated absences in the Statement of Activities is reported as an expense but is not reported in the governmental funds. (327,253)
In the Statement of Activities, pension expense that does not require the use of current financial resources is not reported as revenue or expenditure. 162,692
Net income (loss) before transfers and contributions - internal service funds (7,055,455) Less: portion allocated to business activities (331,106) Change in net position of governmental activities $ 35,001,916 See accompanying Notes to the Basic Financial Statements.

Amounts reported for governmental activities in the Statement of Activities were different because:

City of Redding
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances of Government-Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2023
43 Packet Pg. 339 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) This page intentionally left blank
44 Packet Pg. 340 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Major Enterprise Funds:

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

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

Wastewater Utility - 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.

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

Internal Service Funds:

These funds are used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments.

PROPRIETARY FUND

FINANCIAL STATEMENTS
45 Packet Pg. 341 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal
ASSETS
Current assets:

Cash and investments 67,511,671 $ $50,909,698 37,433,659 $ 25,572,769 $ Accounts receivable, net 14,417,811 2,735,616 3,041,861 2,543,230 Lease receivable - 109,089 - -
Intergovernmental receivable - 64,531 - -
Interest receivable 304,262 312,123 232,658 144,999
Interfund receivable 1,762,014 692,220 471,968 220,252
Prepaid items 1,128,766 4,888 6,118 240,390
Inventories 10,846,269 1,075,600 15,109 327,820
Deposit 350,900 20,300 22,000 - - Total current assets 96,321,693 55,924,065 41,223,373 29,049,460 Noncurrent assets:

Restricted assets:

Cash and investments 5,078,294 11,985 4,619,599 -
Interest receivable 45 - 21 -
Total restricted assets 12,030 5,078,294 4,619,620 -
Capital assets:

Land 508,799 5,240,780 2,984,167 1,697,818
Construction in progress 8,550,528 16,617,311 19,233,916 861,568 Depreciable capital assets, net 175,614,699 63,818,906 160,752,810 16,816,245 Capital assets 72,878,233 197,472,790 182,970,893 19,375,631 Other assets:

Advances to other funds - 4,240,051 - -
Lease receivable, net current 368,364 - - -
Investment in JPA - 7,584,638 - -
Storage base gas - 13,570,000 - -
Note receivable - 90,688 - -
Total other assets 368,364 25,485,377 - -
Total noncurrent assets 78,324,891 222,970,197 187,590,513 19,375,631 Total assets 134,248,956 319,291,890 228,813,886 48,425,091

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 5,596,324 - 767,723 -
Deferred outflows related to other post employment benefits 5,498,909 605,095 831,116 1,360,929 Deferred outflows related to pensions 26,259,433 3,028,149 3,818,883 6,024,708 Total deferred outflows of resources 3,633,244 37,354,666 5,417,722 7,385,637 (Continued)
See accompanying Notes to the Basic Financial Statements.

Enterprise Funds
City of Redding
Statement of Net Position
Proprietary Funds
June 30, 2023
46 Packet Pg. 342 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Governmental
Activities
Non-Major Internal
Enterprise Service
Funds Total Funds
ASSETS
Current assets:

Cash and investments 7,428,126 $ 188,855,923 $ 18,161,226 $ Accounts receivable, net 101,935 22,840,453 153,662
Lease receivable 685,183 794,272 -
Intergovernmental receivable 7,160,429 7,224,960 277
Interest receivable 49,708 1,043,750 98,585
Interfund receivable - 3,146,454 112,571
Prepaid items 242,126 1,622,288 2,180,014
Inventories 164,257 12,429,055 476,968
Deposit 393,200 - -
Total current assets 15,831,764 238,350,355 21,183,303
Noncurrent assets:

Restricted assets:

Cash and investments 12,835,696 3,125,818 -
Interest receivable - 66 -
Total restricted assets 3,125,818 12,835,762 -
Capital assets:

Land 20,394,310 9,962,746 110,810
Construction in progress 55,199,976 9,936,653 508,145
Depreciable capital assets, net 50,216,013 467,218,673 1,454,846 Capital assets 542,812,959 70,115,412 2,073,801
Other assets:

Advances to other funds 4,240,051 - 3,195,449
Lease receivable, net current 8,309,466 7,941,102 -
Investment in JPA 7,584,638 - -
Storage base gas 13,570,000 - -
Note receivable 90,688 - -
Total other assets 33,794,843 7,941,102 3,195,449
Total noncurrent assets 589,443,564 81,182,332 5,269,250 Total assets 827,793,919 97,014,096 26,452,553

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 6,364,047 -
Deferred outflows related to other post employment benefits 288,209 8,584,258 1,936,368 Deferred outflows related to pensions 991,249 40,122,422 8,210,847 Total deferred outflows of resources 55,070,727 1,279,458 10,147,215 (Continued)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
Enterprise Funds
47 Packet Pg. 343 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal

LIABILITIES
Current liabilities (payable from current assets):

Accounts payable 4,522,629 583,540 1,547,756 953,657
Accrued liabilities 895,364 125,771 139,716 221,194
Accrued interest payable 365,813 - 158,178 -
Claims and judgements payable - - - -
Intergovernmental payable 3,451,822 14,151 381 44,446
Due to other funds - - - -
Interfund payables - - - -
Unearned revenue 126,731 20,094 - 138,855
Deposits 2,693,829 12,714 - 7,091,156
Accrued compensated absences, due with in one year 2,151,413 266,046 295,444 621,414 Landfill closure costs, due with in one year - - - 183,640 Long-term debt, due with in one year 12,111,610 24,511 4,470,255 43,934 State loan, due with in one year - - - -
Aggregate net OPEB liability 788,709 86,789 119,207 195,198 Total current liabilities 27,107,920 1,133,616 6,730,937 9,493,494 Long-term liabilities:

Accrued compensated absences, due in more than one year 4,452,41 475,643 1 545,534 1,360,692 Landfill closure costs, due in more than one year - - - 2,581,197 Advances from other funds - - - -
Accrued liabilities, due in more than one year 447,705 - - - Claims and judgements, due in more than one year - - - - Long-term debt, due in more than one year 94,995,093 1,839 44,121,019 82,498 State loan, due in more than one year - - - -
Aggregate net OPEB liability 12,670,775 1,394,281 1,915,088 3,135,899 Aggregate net pension liability 79,828,632 8,496,680 11,047,002 18,148,976 Total long-term liabilities 192,394,616 10,368,443 57,628,643 25,309,262 Total liabilities 11,502,059 219,502,536 64,359,580 34,802,756

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 1 131,624 ,196,159 180,790 296,038 Deferred inflows related to pensions 335,450 54,678 61,472 80,712 Deferred inflows related to leases - 477,453 - -
Total deferred inflows of resources 663,755 1,531,609 242,262 376,750

NET POSITION
Net investment in capital assets 72,865,443 95,974,396 135,147,342 19,249,199 Restricted for:

Capital projects - 5,064,734 537,282 -
Unrestricted (deficit) 39,638,015 47,786,209 33,945,142 1,382,023 Total net position (deficit) $ 125,716,386 135,612,411 $ 169,629,766 $ 20,631,222 $ (Continued)
See accompanying Notes to the Basic Financial Statements.

Enterprise Funds
City of Redding
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
48 Packet Pg. 344 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Governmental
Activities
Non-Major Internal
Enterprise Service
Funds Total Funds

LIABILITIES
Current liabilities (payable from current assets):

Accounts payable 1,678,357 9,285,939 1,105,328
Accrued liabilities 56,429 1,438,474 338,986
Accrued interest payable 2,792 526,783 -
Claims and judgements payable - - 8,222,185
Intergovernmental payable 124,577 3,635,377 1,140,794
Due to other funds 5,733,214 5,733,214 -
Interfund payables 112,571 112,571 25,000
Unearned revenue 2,032,373 2,318,053 189,740
Deposits 87,139 9,884,838 -
Accrued compensated absences, due with in one year 69,272 3,403,589 657,224 Landfill closure costs, due with in one year - 183,640 - Long-term debt, due with in one year 119,831 16,770,141 93,030 State loan, due with in one year 31,181 31,181 -
Aggregate net OPEB liability 41,338 1,231,241 277,734
Total current liabilities 10,089,074 54,555,041 12,050,021 Long-term liabilities:

Accrued compensated absences, due in more than one year 124,264 6,958,544 1,357,000 Landfill closure costs, due in more than one year - 2,581,197 - Advances from other funds 3,008,537 3,008,537 6,250
Accrued liabilities, due in more than one year 447,705 - Claims and judgements, due in more than one year - - 10,295,055 Long-term debt, due in more than one year 33,077 139,233,526 134,177 State loan, due in more than one year 303,355 303,355 - Aggregate net OPEB liability 664,104 19,780,147 4,461,851 Aggregate net pension liability 3,262,837 120,784,127 25,036,061 Total long-term liabilities 7,396,174 293,097,138 41,290,394 Total liabilities 347,652,179 17,485,248 53,340,415

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to other post employment benefits 6 1,867,303 2,692 421,211 Deferred inflows related to pensions 7,035 539,347 103,193 Deferred inflows related to leases 8,626,285 9,103,738 - Total deferred inflows of resources 11,510,388 8,696,012 524,404

NET POSITION
Net investment in capital assets 392,864,351 69,627,971 1,846,594 Restricted for:

Capital projects 3,319,632 8,921,648 -
Unrestricted (deficit) (835,309) 121,916,080 (19,111,645) Total net position (deficit) $ 523,702,079 72,112,294 $ (17,265,051) $ Net position reconciliation to statement of net position:

Net position of proprietary funds 523,702,079 $
Less business-type portion of the internal service fund (13,840,733) Net position of business-type activities $ 509,861,346
See accompanying Notes to the Basic Financial Statements. (Concluded) Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
Enterprise Funds
City of Redding
49 Packet Pg. 345 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Solid Waste
Electric Water Wastewater Collection/
Utility Utility Utility Disposal
OPERATING REVENUES:

User fees and charges 131,400,744 $ 24,327,828 $ 33,593,933 $ 26,256,121 $ Wholesale sales 44,591,721 48,420 - -
Rental charges 138,000 - - -
Other operating revenue 23,236,061 - 57,019 828,132
Total operating revenues 24,376,248 199,366,526 33,650,952 27,084,253 OPERATING EXPENSES:

Cost of power, water, and transportation 80,993,472 1,002,971 - - Maintenance, operations, and administration 86,200,380 16,743,718 19,389,793 27,534,468 Depreciation and amortization 15,241,870 4,102,715 7,319,789 2,889,534 Total operating expenses 21,849,404 182,435,722 26,709,582 30,424,002 OPERATING INCOME (LOSS) 2,526,844 16,930,804 6,941,370 (3,339,749) NONOPERATING REVENUES (EXPENSES):

Net investment earnings (loss) 776,999 579,629 515,892 404,224 Interest expense (4,377,051) (39,502) (1,437,704) (1,508) Intergovernmental revenues - 4,952 - 81,154
Gain (loss) on disposal of assets (427,852) (159,000) 8,794 (113,474) Other non-operating revenues (expenses) 116,791 2,265,456 1,685,270 1,904 Total nonoperating revenues (expenses) 2,651,535 (3,911,113) 772,252 372,300

INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS 5,178,379 13,019,691 7,713,622 (2,967,449) Capital contributions 1,666,030 1,833,043 857,485 1,184,298 Transfers in 24,250 6,500 - -
Transfers out (9,471,150) (132,306) (309,922) -
Change in net position 6,885,616 5,238,821 8,261,185 (1,783,151) NET POSITION:

Beginning of year 118,830,770 130,373,590 161,368,581 22,414,373 End of year 135,612,411 $ 125,716,386 $ 169,629,766 $ 20,631,222 $ (Continued)
See accompanying Notes to the Basic Financial Statements.

Enterprise Funds
City of Redding
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2023
50 Packet Pg. 346 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Governmental
Activities
Non-Major Internal
Enterprise Service
Funds Total Funds
OPERATING REVENUES:

User fees and charges 3,944,629 $ 219,523,255 $ 81,146,565 $ Wholesale sales - 44,640,141 -
Rental charges 1,819,311 1,957,311 -
Other operating revenue 986,438 25,107,650 59,195
Total operating revenues 291,228,357 6,750,378 81,205,760 OPERATING EXPENSES:

Cost of power, water, and transportation 4,308,340 86,304,783 - Maintenance, operations, and administration 9,008,673 158,877,032 81,607,889 Depreciation and amortization 4,384,501 33,938,409 394,901 Total operating expenses 279,120,224 17,701,514 82,002,790 OPERATING INCOME (LOSS) 12,108,133 (10,951,136) (797,030) NONOPERATING REVENUES (EXPENSES):

Net investment earnings (loss) 139,527 2,416,271 177,172 Interest expense (42,117) (5,897,882) (12,262)
Intergovernmental revenues 7,865,876 7,951,982 14,818
Gain (loss) on disposal of assets 7,481 (684,051) 35,473 Other non-operating revenues (expenses) 420,081 4,489,502 (6,473,626) Total nonoperating revenues (expenses) 8,275,822 8,390,848 (6,258,425)

INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS 20,383,955 (2,560,288) (7,055,455) Capital contributions 5,591,865 11,132,721 -
Transfers in 2,306,301 2,337,051 102,886
Transfers out (245,000) (10,158,378) (69,042)
Change in net position 23,695,349 5,092,878 (7,021,611) NET POSITION:

Beginning of year 67,019,416 (10,243,440) 500,006,730
End of year 72,112,294 $ 523,702,079 $ (17,265,051) $
Change in net position reconciliation to statement of activities:

Change in net position of proprietary funds 23,695,349 $ Add internal service funds income - business-type activity 331, 106 Change in net position of business-type activities $ 24,026,455 (Concluded)
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
For the Year Ended June 30, 2023
Enterprise Funds
51 Packet Pg. 347 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Electric Water Wastewater
Utility Utility Utility
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 178,075,637 $ 24,242,902 $ 33,597,693 $ Cash paid to suppliers (126,455,919) (12,642,738) (12,669,567) Cash paid to employees (39,637,972) (4,702,510) (6,071,002) Other income received 23,236,061 - 57,019
Net cash provided by (used in) operating activities 6,897,654 35,217,807 14,914,143

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Intergovernmental revenue received - 4,952 -
Advances from other funds - - -
Repayment of advances from other funds - - -
Advances to other funds (3,146,610) (692,220) (522,291) Repayment of advances to other funds 3,219,304 144,594 50,323 Transfers in 24,250 3,244,422 -
Transfers out (9,471,150) (3,236,909) (309,922)
Other revenue, contributions - - -
Net cash provided by (used in) noncapital financing activities (535,161) (9,374,206) (781,890)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grant received - - -
Proceeds from sale of assets 300,486 35,953 318,716
Purchase of capital assets (13,132,180) (5,720,610) (9,079,722) Rents received 12,746 -
Interest paid (4,964,519) (28,847) (2,153,614)
Proceeds from long-term debt - - -
Principal paid on long-term debt (10,203,645) (754,571) (4,627,087) Principal paid on - - -
Cash collected for future capital outlay - 2,265,456 1,672,524 Net cash provided by (used in) capital
and related financing activities (4,202,619) (27,999,858) (13,856,437) CASH FLOWS FROM INVESTING ACTIVITIES:

Net investment earnings (loss) 655,884 412,501 392,268
Net cash (used in) investing activities 412,501 655,884 392,268 Net increase (decrease) in cash and cash equivalents 2,572,375 (1,500,373) 668,084 CASH AND CASH EQUIVALENTS:

Beginning of year 69,024,029 53,415,617 41,385,174
End of year 67,523,656 $ 55,987,992 $ 42,053,258 $
Reconciliation to statement of net position:

Cash and cash equivalents $ 50,909,698 67,511,671 $ 37,433,659 $ Restricted cash and cash equivalents 5,078,294 11,985 4,619,599 $ 55,987,992 67,523,656 $ 42,053,258 $
See accompanying Notes to the Basic Financial Statements. (Continued) Enterprise Funds
City of Redding
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
52 Packet Pg. 348 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Governmental
Activities
Solid Waste Non-Major Internal
Collection/ Enterprise Service
Disposal Funds Total Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 30,311,780 $ 6,768,018 $ 272,996,030 $ 81,120,900 $ Cash paid to suppliers (20,109,231) (12,034,577) (183,912,032) (66,566,819) Cash paid to employees (10,549,438) (1,915,536) (62,876,458) (12,616,698) Other income received 828,156 32,626 24,153,862 -
Net cash provided by (used in) operating activities (7,149,469) 481,267 50,361,402 1,937,383

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Intergovernmental revenue received 79,050 8,309,603 8,393,605 8,023 Advances from other funds - 5,733,214 5,733,214 -
Repayment of advances from other funds - (1,815,037) (1,815,037) (105,210) Advances to other funds (220,252) - (4,581,373) (28,720) Repayment of advances to other funds - - 3,414,221 117,250 Transfers in - 2,266,298 5,534,970 -
Transfers out - (245,000) (13,262,981) -
Other revenue, contributions - - - 273
Net cash provided by (used in) noncapital financing activities 14,249,078 (141,202) 3,416,619 (8,384)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grant received - (343,024) (343,024) -
Proceeds from sale of assets 10,308 - 665,463 35,964
Purchase of capital assets (3,029,759) (7,792,109) (38,754,380) (2,755,484) Rents received 1,880 57,249 71,875 -
Interest paid (1,508) (50,165) (7,198,653) (12,262)
Proceeds from long-term debt 140,546 - 140,546 94,402
Principal paid on long-term debt - (912,776) (16,498,079) (27,604) Principal paid on (23,156) - (23,156) -
Cash collected for future capital outlay - 330,223 4,268,203 - Net cash provided by (used in) capital
and related financing activities (8,710,602) (2,901,689) (57,671,205) (2,664,984) CASH FLOWS FROM INVESTING ACTIVITIES:

Net investment earnings (loss) 333,589 105,896 1,900,138 122,636 Net cash provided (used) by investing activities 105,896 333,589 1,900,138 122,636 Net increase (decrease) in cash and cash equivalents (1,505,097) (2,228,035) (1,993,046) (613,349) CASH AND CASH EQUIVALENTS:

Beginning of year 27,800,804 12,059,041 203,684,665 18,774,575 End of year 25,572,769 $ 10,553,944 $ 201,691,619 $ 18,161,226 $ Reconciliation to statement of net position:

Cash and cash equivalents $ 7,428,126 25,572,769 $ 188,855,923 $ 18,161,226 $ Restricted cash and cash equivalents 3,125,818 - 12,835,696 - $ 10,553,944 25,572,769 $ 201,691,619 $ 18,161,226 $
See accompanying Notes to the Basic Financial Statements. (Continued) City of Redding
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
Enterprise Funds
53 Packet Pg. 349 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Electric Water Wastewater
Utility Utility Utility

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) to net cash provided by (used in) 16,930 $ 2,526,844 ,804 $ 6,941,370 $ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Other non-operating revenue and expense - - -
Depreciation and amortization 15,241,870 4,102,715 7,319,789 (Increase) decrease in accounts receivable 1,945,172 (133,346) 3,760 (Increase) decrease in inventories 102,585 (71,509) 6,572 (Increase) decrease in prepaid items 503,994 - (2,760)
(Increase) decrease in investment in JPA (1,230,810) - - (Increase) decrease in deposits (255,527) 700 19,000
Increase (decrease) in accounts payable 639,882 361,876 629,809 Increase (decrease) in accrued liabilities 187,801 49,252 42,044 Increase (decrease) in claims and judgements payable - - - Increase (decrease) in deposits liability 619,574 12,714 - Increase (decrease) in intergovernmental payable (1,947,479) 9,962 (25,278) Increase (decrease) in unearned revenue 126,731 - -
Increase (decrease) in accrued compensated absences 787,157 117,549 60,924 Increase (decrease) in accrued landfill closure costs - - - Increase (decrease) in accrued liabilities long-term 447,705 - - Other post employment benefits related items 1,136,682 176,210 (25,729) Pension related items (18,334) (255,313) (55,358)
Total adjustments 4,370,810 18,287,003 7,972,773
Net cash provided by (used in) operating activities $ 6,897,654 35,217,807 $ 14,914,143 $

SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES:

Plant contributed from developers 1,666,030 $ 1,833,043 $ 857,485 $ Non-cash change in deposits - - -
Transfer in of capital assets - 125,806 -
Total non-cash capital and related financing activities $ 1,958,849 1,666,030 $ 857,485 $ (Continued)
See accompanying Notes to the Basic Financial Statements.

Enterprise Funds
City of Redding
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
54 Packet Pg. 350 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Governmental
Activities
Solid Waste Non-Major Internal
Collection/ Enterprise Service
Disposal Funds Total Funds

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) to net cash provided by (used in) (3,339 $ (10,951,136) ,749) $ 12,108,133 $ (797,030) $ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Other non-operating revenue and expense 24 32,609 32,633 - Depreciation and amortization 2,889,534 4,384,501 33,938,409 394,901 (Increase) decrease in accounts receivable (93,767) 18,557 1,740,376 (76,837) (Increase) decrease in inventories (327,820) (49,857) (340,029) (85,524) (Increase) decrease in prepaid items - (1) 501,233 (33,482) (Increase) decrease in investment in JPA - - (1,230,810) - (Increase) decrease in deposits - - (235,827) -
Increase (decrease) in accounts payable 62,183 (52,023) 1,641,727 708,040 Increase (decrease) in accrued liabilities 68,346 17,650 365,093 52,193 Increase (decrease) in claims and judgements payable - - - 860,300 Increase (decrease) in deposits liability 940,860 (900) 1,572,248 - Increase (decrease) in intergovernmental payable 3,795 (685,770) (2,644,770) 482,072 Increase (decrease) in unearned revenue - 13,747 140,478 (8,023) Increase (decrease) in accrued compensated absences 304,647 34,589 1,304,866 307,569 Increase (decrease) in accrued landfill closure costs 180,877 - 180,877 - Increase (decrease) in accrued liabilities long-term - - 447,705 - Other post employment benefits related items 335,604 113,891 1,736,658 601,759 Pension related items (543,267) (25,326) (897,598) (468,555) Total adjustments 3,801,667 3,821,016 38,253,269 2,734,413 Net cash provided by (used in) operating activities $ (7,149,469) 481,267 $ 50,361,402 $ 1,937,383 $

SCHEDULE OF NONCASH CAPITAL AND
RELATED FINANCING ACTIVITIES:

Plant contributed from developers 1,184,298 $ 969,489 $ 6,510,345 $ - $ Non-cash change in deposits (1,184,298) - (1,184,298) - Equipment transfers - 403,990 529,796 (51,435)
Total non-cash capital and related financing activities $ 1,373,479 - $ 5,855,843 $ (51,435) $ (Concluded)
See accompanying Notes to the Basic Financial Statements.

Enterprise Funds
City of Redding
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
55 Packet Pg. 351 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) This page intentionally left blank
56 Packet Pg. 352 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Custodial Funds
These funds are custodial in nature and do not involve measurement of results of operations. They are used to account for assets held in an agency capacity for others and therefore cannot be used to support the City's programs. This includes the Special Deposits Fund, Integrated Public Safety System (IPSS) Fund, and Enterprise Anderson Groundwater Fund. These funds use the economic resources measurement focus.

The Successor Agency to the Redding Redevelopment Agency Private-purpose Trust Fund ("Successor Agency")
This fund is used to account for monies received from the Shasta County Auditor-Controller for the repayment of the enforceable obligations of the former Redding Redevelopment Agency. These funds are restricted for the sole purpose of payment of items on an approved Recognized Payment Obligation Schedule (ROPS).

FIDUCIARY FUND

FINANCIAL STATEMENTS
57 Packet Pg. 353 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Successor Agency
Custodial Private-Purpose
Funds Trust Fund
ASSETS
Cash and investments $ 7,964,098 $ 2,133,796
Restricted cash and investments - 6,387,726
Interest receivable 26,365 41,777
Accounts receivable, net 131,123 -
Intergovernmental receivable - 29,574
Capital assets:

Land 175,877 -
Construction in progress 2,380,119 -
Depreciable capital assets, net 78,870 -
Net capital assets 2,458,989 175,877
Total assets 8,768,750 10,580,575

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 4,172
Total deferred outflows of resources 4,172 -

LIABILITIES
Accounts payable 2,607 -
Accrued liabilities - 15,277
Accrued interest payable 191,619 -
Intergovernmental payable 33,178 -
Unearned revenue 184,363 -
Deposits payable - 7,251,915
Long-term debt 11,701,204 -
Total liabilities 12,077,186 7,302,977

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations, and other governments 3,277,598 - Held in trust (3,304,264) -
Total net position $ (3,304,264) 3,277,598 $
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
58 Packet Pg. 354 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) Successor Agency
Custodial Private-Purpose
Funds Trust Fund
ADDITIONS:

Property taxes $ 3,641,023 - $
Intergovernmental revenues 1,467,241 -
User fees - 144,937
Net investment earnings (loss) 37,769 181,450
Total additions 3,822,473 1,649,947
DEDUCTIONS:

Administrative costs 1,036,892 250,000
Payment on recognized obligation payment schedule - 629,913 Software maintenance and support 52,578 -
Project payments 868,592 -
Depreciation - 39,018
Total deductions 879,913 1,997,080
Net change in net position 2,942,560 (347,133)
NET POSITION:

Beginning of period (6,246,824) 3,624,731
End of period $ (3,304,264) 3,277,598 $
See accompanying Notes to the Basic Financial Statements.

City of Redding
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
59 Packet Pg. 355 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) This page intentionally left blank
60 Packet Pg. 356 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) 61 NOTES TO THE BASIC

FINANCIAL STATEMENTS
Packet Pg. 357 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) 62 This page intentionally left blank

Packet Pg. 358 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
63 Note 1 – Summary of Significant Accounting Policies ...................................................................................... 65 A. Reporting Entity .................................................................................................................................. 65 B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation ............................. 66 C. Cash and Investments .......................................................................................................................... 70 D. General Receivables and Property Taxes Receivable ......................................................................... 71 E. Inventories ........................................................................................................................................... 71 F. Capital Assets ...................................................................................................................................... 71 G. Leases .................................................................................................................................................. 72 H. Subscription Based Information Technology Arrangements (SBITA) .............................................. 74 I. Pensions ............................................................................................................................................... 74 J. Other Postemployment Healthcare Benefits (OPEB) .......................................................................... 75 K. Vacation and Sick Pay ......................................................................................................................... 75 L. Unearned Revenue ............................................................................................................................... 76 M. Long-Term Obligations ....................................................................................................................... 76 N. Net Position ......................................................................................................................................... 76 O. Fund Balances ..................................................................................................................................... 76 P. Spending Policy ................................................................................................................................... 77 Q. Use of Estimates .................................................................................................................................. 77 R. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2023 ............. 77 S. Upcoming Governmental Accounting Standards Implementation ...................................................... 78 Note 2 – Cash and Investments............................................................................................................................ 79 A. Demand Deposits ................................................................................................................................. 80 B. Investments .......................................................................................................................................... 80 C. Investments in Local Agency Investment Fund .................................................................................. 80 D. Investments in California Asset Management Program (CAMP) ....................................................... 81 E. Risk Disclosures .................................................................................................................................. 81 Note 3 – Governmental Notes Receivable ........................................................................................................... 83 Note 4 – Lease Receivable..................................................................................................................................... 84 Note 5 – Interfund Activities ................................................................................................................................ 86 A. Due From and Due To Other Funds .................................................................................................... 86 B. Interfund Receivable and Payable ....................................................................................................... 86 C. Advances To and From Other Funds ................................................................................................... 87 D. Internal Balance Summary .................................................................................................................. 88 E. Transfer In and Out ............................................................................................................................. 89 Note 6 – Capital Assets ......................................................................................................................................... 90 A. Governmental Activities ...................................................................................................................... 90 B. Business-Type Activities ..................................................................................................................... 91 Note 7 – Power Acquisition Costs ........................................................................................................................ 92 Note 8 – Storage Base Gas .................................................................................................................................... 92 Packet Pg. 359 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Index to Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
64 Note 9 – Unavailable Revenue .............................................................................................................................. 92 Note 10 – Long Term Debt ................................................................................................................................... 93 Note 11 – Pledged Revenue ................................................................................................................................... 98 Note 12 – Compensated Absences……………………………………………………………………………….100 Note 13 – Self Insurance…………………………………………………………………………………………100 Note 14 – Individual Fund Disclosures............................................................................................................... .101 Note 15 – Joint Ventures ..................................................................................................................................... .102 A. M-S-R Public Power Agency ............................................................................................................. 102 B. M-S-R Energy Authority .................................................................................................................... 104 C. Transmission Agency of Northern California .................................................................................... 105 D. Balancing Authority of Northern California ...................................................................................... 105 E. Modesto Irrigation District Financing Authority ................................................................................ 106 F. Contingent Liability ............................................................................................................................ 107 Note 16 – Postclosure Care Costs ....................................................................................................................... 107 Note 17 – Public Transportation Modernization Improvement and Service Enhancement Account (PTMISEA) Grant Information ......................................................................................................... 108 Note 18 – Retirement Plans ................................................................................................................................. 109 A. Summary ............................................................................................................................................ 109 B. CalPERS ............................................................................................................................................. 115 C. PARS .................................................................................................................................................. 123 Note 19 – Other Postemployment Healthcare Benefits ..................................................................................... 129 Note 20 – Fund Balances ..................................................................................................................................... 138 Note 21 – Net Investment in Capital Assets ....................................................................................................... 139 Note 22 – Commitments and Contingencies ...................................................................................................... 140 A. Construction Commitments ................................................................................................................ 140 B. Redding Electric Utility (REU) .......................................................................................................... 140 C. West Central Landfill ........................................................................................................................ 141 D. Grants ................................................................................................................................................. 141 E. Litigation ............................................................................................................................................ 141 Note 23 – Successor Agency Trust for Assets of the Former Redevelopment Agency ................................... 142 Note 24 – Subsequent Events .............................................................................................................................. 144 Packet Pg. 360 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
65 Note 1 – Summary of Significant Accounting Policies
The following is a summary of the more significant accounting policies of the City of Redding (City), all of which conform to United States generally accepted accounting principles (U.S. GAAP) as applicable to governmental units.

The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

A. Reporting Entity
The City was incorporated on October 4, 1887, as a general law city formed under state legislative statutes and governed by a body of laws in the State Constitution. The financial reporting entity (the government) includes all the funds of the primary government (i.e., the City as legally defined), as well as all of its component units.

Component units are legally separate entities for which the primary government is financially accountable. The government provides a full range of services including police and fire protection; sanitation, electric, water, and wastewater services; the construction and maintenance of streets and infrastructure; recreational activities and cultural events.

As required by U.S. GAAP, the accompanying basic financial statements present the City and its component units. Component units are entities for which the City is considered to be financially accountable. GASB defines component units as legally separate entities that meet any one of the following tests:
 The component unit’s governing body is substantively the same as the governing body of the City and:
o there is a financial benefit or burden relationship between the City and the component unit or o Management of the City has operational responsibility for the component unit.  The component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City even though it does not provide services to it.  The component unit’s total debt outstanding, including leases and subscription based information technology agreements (SBITAs), is expected to be repaid entirely or almost entirely with resources of the City.

Management determined that the following component units should be blended based on the criteria above:
 Redding Housing Authority
 Redding Joint Power Financing Authority
 Redding Capital Services Corporation
 Redding Area Bus Authority
These component units are included in the primary government because of the significance of their financial or operational relationship and the same City governing body.

Each of the blended component units in the accompanying basic financial statements of the City are described below:

Redding Housing Authority (Authority) manages certain programs which are funded by the U.S. Department of Housing and Urban Development, primarily to provide services under the Housing Assistance Payments Program.

The five City Council members and one person appointed by the City Council, in a separate session, serve as the governing board of the Authority. The financial activity of the Authority has been included in the City’s financial statements as a special revenue fund.

Redding Joint Powers Financing Authority (JPA) was created by a joint exercise of power agreement between the City and the JPA with the purpose of financing public capital improvements. City Council members, in a Packet Pg. 361 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
66 separate session, serve as the governing board of the JPA. The financing activity of the JPA has been included in the City’s financial statements.

Redding Capital Services Corporation (Corporation), a nonprofit public benefit corporation, was organized under the Nonprofit Public Benefit Corporation Law of the State of California to provide financial assistance to the City by constructing, financing, purchasing, selling and leasing various public facilities, land and equipment for the use, benefit and enjoyment of the public serviced by the City. City council members, in a separate session, serve as the board of directors of the Corporation. The financing activity of the Corporation has been included in the City’s financial statements in the enterprise funds.

Redding Area Bus Authority (RABA) is a separate governmental entity formed under a joint powers agreement between the County of Shasta, City of Shasta Lake, the City of Anderson and the City. RABA’s governing board comprises members of both the Counties, and the cities of Redding, Anderson, and Shasta Lake’s governing boards based on population ratios within the service area. Currently, the Redding City Council comprises a majority of the board members filling five of the eight positions. In addition, City of Redding personnel provides administrative responsibility for RABA. The function of RABA is to provide the most cost effective public transportation system utilizing federal and state funding participation. The financial activity of RABA has been included in the City’s financial statements as an enterprise fund.

Financial statements for each of the individual component units may be obtained from the Finance Department of the City at 777 Cypress Avenue, Redding, California 96001.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.

The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets that applies to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods and that, therefore, are not recognized as revenue until that time.

Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

Packet Pg. 362 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
67 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Government-Wide Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues.

The government-wide financial statements are reported using the “economic resources” measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues.

Likewise, general revenues include all taxes.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government’s business type activities and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in Net Position as presented in these statements to the Net Position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.

Governmental fund financial statements are reported using the “current financial resources” measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues as available if they are collected within sixty (60) days of the end of the current fiscal period, except for sales tax which has a ninety (90) day availability period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

The reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences.

Packet Pg. 363 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
68 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental Fund Financial Statements (Continued)
Property taxes, sales taxes, transient occupancy tax, grants, licenses, fees, charges and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The General Capital Projects Fund accounts for the financing and construction activities of the general government.

The Community Development Fund accounts for the financing and rehabilitation of homes and public facilities, homeless services and the financing of multifamily housing.

Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds account for the financing of goods or services provided by one department to other departments of the City on a cost-reimbursement basis. Internal service funds used by the City are:

Equipment Fund - this fund is used to account for vehicle maintenance and communication costs.

Information Systems - this fund is used to provide computer technology services as well as providing programming and general information systems support services.

General Support Services - this fund is used to provide printing, reprographics, geographic services, records retention, building and maintenance services, volunteer services and employee services.

Risk Management – this fund is used to account for the accumulation of monies necessary to pay for worker’s compensation claims, health, dental and visions claims and liability claims under a self-insurance program.

Municipal Utilities Support – this fund is used to account for the management and technician support given to the Utilities and Street Maintenance funds.

Packet Pg. 364 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
69 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Proprietary Fund Financial Statements (Continued)
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and of the government’s internal service funds are charges to customers for sales and services. Tap and similar fees have been reported as non-operating revenues in the City’s statement of revenues, expenses and changes in net position for proprietary funds and as capital grants and contributions in the statement of activities and changes in net position. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

The City reports the following major proprietary funds:

The Electric Utility Fund accounts 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.

The Water Utility Fund accounts 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.

The Wastewater Utility Fund accounts 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.

The Solid Waste Collection / Disposal Fund accounts for the operations of the City’s solid waste utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of fiduciary net position and a statement of changes in fiduciary net position. The City’s fiduciary funds represent custodial funds and a Private-purpose Trust Fund.

Custodial funds report fiduciary activities that are not held in a trust or equivalent arrangement. These funds use the economic resources measurement focus.

Packet Pg. 365 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
70 Note 1 – Summary of Significant Accounting Policies (Continued) B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Fiduciary Fund Financial Statements (Continued)
Fiduciary fund types are accounted for according to the nature of the fund.

The City’s Custodial funds are used to account for assets held by a governmental unit as an agent for individuals, governmental entities (other than the City) and non-public organizations. This fund is used to account for deposits and collects monies for various community events which are remitted to the organizers.

The City’s private purpose trust fund is a fiduciary fund type used to report all trust arrangements, other than those properly reported in pension trust funds or investment trust funds, under which principal and interest benefit individuals, private organizations, or other governments. This trust fund is used to account for the fiduciary assets, liabilities and net position of the Successor Agency (Agency) to the Redding Redevelopment Agency, the former redevelopment agency of the City.

C. Cash and Investments
The City pools idle cash from all funds for the purpose of increasing income through investment activities. Cash deposits are stated at cost, which approximates fair value. Investments are stated at fair value. Investment income is recorded as revenue in the individual funds based on the computed average interest rate of all investments and the average daily cash balance of each fund. For purposes of the statement of cash flows of the proprietary fund types, cash and cash equivalents include all investments, as the City operates an internal cash management pool which maintains the general characteristics of a demand deposit account.

All cash and investments of proprietary funds are held in the City’s investment pool. Therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for purposes of the statement of cash flows as these cash pools have the general characteristics of a demand deposit account.

Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas:
 Interest Rate Risk
 Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
 Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

Packet Pg. 366 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
71 Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash and Investments (Continued)
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position or Balance Sheet, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2 – Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

D. General Receivables and Property Taxes Receivable
The City records an allowance for doubtful accounts on general accounts receivable based on the experience method.

The County of Shasta assesses, bills, and collects property taxes for the City. Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July 1. They become due November 1 and February 1 and become delinquent December 10 and April 10. City property tax revenue is recognized when levied to the extent that it is available (collected within 60 days of year-end).

E. Inventories and Prepaid Items
Inventories are physically counted at year-end and valued at their average cost. All inventories consist of expendable supplies held for consumption. The cost is recorded as inventory when items are purchased and as expenditures when the items are used (the consumption method of accounting for inventories). The weighted average method is used for establishing the cost of inventory consumed.

Payments made to vendors that will benefit future accounting periods are recorded as prepaid items. Prepaid items, as reported in the governmental funds balance sheet, are offset by a nonspendable fund balance account to indicate such amounts are not in spendable form. The cost of prepaid items is recorded as expenditure/expenses when consumed rather than when purchased.

F. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. “Right-to-use” assets are defined by the government as assets with an initial present value of more than $15,000 and an estimated life in excess of one year. Such assets are recorded at present value.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life are not capitalized.

Packet Pg. 367 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
72 Note 1 – Summary of Significant Accounting Policies (Continued) F. Capital Assets (Continued)
Major outlays for capital assets and improvements are capitalized as projects are constructed.

Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows:

Asset Types Useful Life (in years)
Public domain infrastructure 30-50
Utility plants 15-50
Buildings 10-30
Improvements other than buildings 5-40
Equipment, furnishings and vehicles 5-10
Assets under capital lease 4-30
System infrastructure 30
Right-to-use assets Term of Contract
For all infrastructure systems, the City elected to use the Basic Approach. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the streets, water purification and distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system, storm water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land.

These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

G. Leases
Lessee
The City has a policy to recognize a lease liability and a right‐to‐use lease asset (lease asset) in our financial statements with an initial, individual value of $15,000 or more with a lease term greater than one year. Variable payments based on future performance or usage of the underlying assets are not included in the measurement of the lease liability.

At the commencement of a lease, the lease liability is measured at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight–line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the State has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

Packet Pg. 368 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
73 Note 1 – Summary of Significant Accounting Policies (Continued) G. Leases (continued)
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

1. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

2. The lease term includes the non-cancelable period of the lease, plus any option periods that are reasonably certain to be exercised.

3. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of a lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported as right-to-use along with other capital assets and lease liabilities are reported on the statement of net position as long-term debt.

Lessor
The City is a lessor for leases of buildings and land and recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

1. The City uses an incremental borrowing rate (IBR) calculated by using the 5, 7, or 10-year Constant Maturities Treasury Bill Index plus a margin of 3% as instructed by one of our financial institutions at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.

2. The lease term includes the non-cancelable period of the lease plus any option periods that are likely to be exercised.

3. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Packet Pg. 369 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
74 Note 1 – Summary of Significant Accounting Policies (Continued) H. Subscription Based Information Technology Arrangements (SBITA) The City has a policy to recognize a SBITA liability and a right‐to‐use subscription asset (subscription asset) in our financial statements with an initial, individual value of $15,000 or more with a term greater than one year.

At the commencement of a SBITA, the SBITA liability is measured at the present value of payments expected to be made during the SBITA term. Subsequently, the SBITA liability is reduced by the principal portion of SBITA payments made.

Subscription assets are recorded at the amount of the initial measurement of the SBITA liabilities and modified by any SBITA payments made to the vendor at or before the commencement of the subscription term, plus capitalizable implementation costs less any incentives received from the vendor at or before the commencement of the subscription term. Subscription assets are amortized using the straight–line method over the subscription term.

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) SBITA term, and (3) SBITA payments.

1. The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.

2. The lease term includes the non-cancelable period of the SBITA, plus any option periods that are reasonably certain to be exercised.

3. SBITA payments included in the measurement of the SBITA liability are composed of fixed payments.

The City monitors changes in circumstances that would require a remeasurement of a SBITA and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the SBITA liability.

Subscription assets are reported as right-to-use along with other capital assets and SBITA liabilities are reported on the statement of net position as long-term debt.

I. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 18). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting:

CalPERS:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
PARS:

Valuation Date June 30, 2022
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
Packet Pg. 370 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
75 Note 1 – Summary of Significant Accounting Policies (Continued) I. Pensions (Continued)
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

J. Other Postemployment Healthcare Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 19). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for OPEB reporting:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

K. Vacation and Sick Pay
Vacation pay is vested to the employees as it accrues and is payable upon retirement or termination. Sick leave, however, does not vest to the employees and is payable only when sick leave is taken, except when an individual has been employed by the City for ten years or longer. If the employee severs their relationship with the City after having been employed ten or more years, they receive from 33-1/3% to 60% payoffs depending on length of service. If the employee retires from the City after having been employed ten or more years, they have the option to take from 33-1/3% to 60% payoffs, per various Memoranda of Understandings, of their accrued sick pay as additional termination pay and have the remaining accrued sick pay extend their term of service for retirement benefit purposes. Vacation pay and 33-1/3% to 60% of the sick pay of employees with terms of services equal to or exceeding ten years have been accrued in the accompanying government-wide financial statements and the accompanying proprietary fund financial statements.

Packet Pg. 371 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
76 Note 1 – Summary of Significant Accounting Policies (Continued) L. Unearned Revenue
In the government-wide financial statements and fund financial statements, unearned revenue is recorded for transactions for which revenues have not been earned.

M. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, businesstype activities, or proprietary fund type statement of net position. Lease and subscription liabilities with a present value of more than $15,000 are also included in long-term debt. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which does not materially differ from the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Bond issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures unless they are related to insurance costs. Bond issuance insurance costs are reported as a prepaid asset and amortized over the life of the bonds.

N. Net Position
For government-wide reporting as well as in proprietary funds, fund equity is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted.

Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by outstanding balance of bonds, notes and other debt that are attributed to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction or improvement of those assets or related debt are included in this component of net position.

Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation.

Unrestricted net position is the net amount of assets, deferred outflows or resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories.

O. Fund Balances
In the fund financial statements, governmental funds aggregate amounts for five classifications of fund balances based on the constraints imposed on the use of these resources. The non-spendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form – prepaid items or inventories; or (b) legally or contractually required to be maintained intact.

The spendable portion of the fund balance comprises the remaining four classifications; restricted, committed, assigned, and unassigned.

Packet Pg. 372 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
77 Note 1 – Summary of Significant Accounting Policies (Continued) O. Fund Balances
Restricted fund balance. This classification reflects the constraints imposed on resources either (a) externally by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.

Committed fund balance. These amounts can only be used for specific purposes pursuant to constraints imposed ordinances of the City Council – the government’s highest level of decision making authority. Those committed amounts cannot be used for any other purpose unless the City Council removes the specified use by taking the same type of action imposing the commitment. This classification also includes contractual obligations to the extent that existing resources in the fund have been specifically committed for the use in satisfying those contractual requirements.

Assigned fund balance. This classification reflects the amounts constrained by the City Council’s “intent” to be used for specific purposes, but are neither restricted nor committed. By Council Policy the City Council and City Manager have the authority to allocate amounts to be used for specific purposes. City Council approves the appropriation; however, the budget ordinance authorizes the City Manager to modify the appropriations by resource or appropriation within a functional area or fund.

Unassigned fund balance. This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount.

In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount.

However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

P. Spending Policy
When both restricted and unrestricted resources are available for use, it is the City’s policy to use externally restricted resources first, then unrestricted resources-committed, assigned, and unassigned-in order as needed. The City has no formal policy of assignment of fund balance. So it is presumed that the order of spending is first committed fund balance, then assigned fund balance, and last of all, unassigned fund balance.

Q. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

R. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2023 The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2023. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.

The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:

Packet Pg. 373 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
78 Note 1 – Summary of Significant Accounting Policies (Continued) R. New Governmental Accounting Standards Implemented for the Year Ended June 30, 2023 (Continued) GASB Statement No. 91 - In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91), to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Application of this statement did not have a significant effect of the City’s financial statements for fiscal year ending June 30, 2023.

GASB Statement No. 94 - In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Application of this did not have a significant effect of the City’s financial statements for fiscal year ending June 30, 2023.

GASB Statement No. 96 - In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Application of this did not have a significant effect of the City’s financial statements for fiscal year ending June 30, 2023.

GASB Statement No. 99 - In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees.

Application of this did not have a significant effect of the City’s financial statements for fiscal year ending June 30, 2023.

S. Upcoming Governmental Accounting Standards Implementation GASB Statement No. 100 - In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2024.

Packet Pg. 374 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
79 Note 1 – Summary of Significant Accounting Policies (Continued) S. Upcoming Governmental Accounting Standards Implementation (Continued) GASB Statement No. 101 - In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

Application of this statement is effective for the City’s fiscal year ending June 30, 2025.

Note 2 – Cash and Investments
At June 30, 2023, cash and investments are reported in the accompanying basic financial statements as follows:

Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Position Total
Cash and investments 75,728,479 $ 188,855,923 $ 264,584,402 $ 10,097,894 $ 274,682,296 $ Restricted cash
and investments $ 12,835,696 1,154,876 $ 13,990,572 $ 6,387,726 $ 20,378,298 $ Government-Wide
Statement of Net Position
At June 30, 2023, cash and investments, including cash and investments with fiscal agent, are reported at fair value in accordance with generally accepted accounting principles. The following table presents the fair value measurements of the investments recognized in the accompanying statement of net position and balance sheet measured at fair value on a recurring basis and the levels within GASB 72 fair value hierarchy in which fair value measurement fall at June 30, 2023:

Measurement
Unrestricted Restricted Total Input
Deposits 59,855,558 $ 231,765 $ 60,087,323 $ N/A
Medium Term Corporate Notes 24,019,600 - 24,019,600 Level 2 Federal Agency Bonds 125,487,968 - 125,487,968 Level 2
Mutual Funds* 51,273,741 14,615,791 65,889,532 Level 1
Local Agency Investment Fund 14,045,429 5,530,742 19,576,171 Uncategorized Total investments 214,826,738 20,146,533 234,973,271
Total cash and investments 274,682,296 $ 20,378,298 $ 295,060,594 $ *Includes CAMP Investments
Fair Value
Securities classified in level 1 are valued using prices quoted in active markets for those securities. Securities classified in level 2 are valued using significant other observable inputs such as institutional bond pricing techniques and evaluated pricing applications and models.

Packet Pg. 375 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
80 Note 2 – Cash and Investments (Continued)
The City maintains a cash and investment pool that is available for use by all funds, except for funds of the Authority, Agency, and RABA (these funds have segregated accounts). Each fund’s portion of the cash and investment pool or segregated accounts is displayed on the Statement of Net Position and the Fund Financial Statement Balance Sheets as “Cash and Investments.”
A. Demand Deposits
At June 30, 2023, the carrying amount of the City’s deposits was $60,087,323 of which $231,765 was restricted and $59,855,558 was unrestricted. The bank balance was $63,914,441. Of the bank balance, $1,948,703 was covered by Federal depository insurance, and $61,965,738 was covered by collateral held in the pledging bank’s trust department.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.

B. Investments
The California Government Investment Code and the investment policy of the City authorize the City to invest in obligations, participation, or other instruments of the U.S. Government or its agencies, state and municipal bonds, commercial paper of “prime” quality of the highest ranking or of the highest letter and numerical rating as provided by Standard & Poor’s Corporation or Moody’s Investor Service, Inc., bankers’ acceptances, repurchase agreements, mortgage pass-through securities, collateralized mortgage obligations, mortgage-backed or other paythrough bonds, equipment lease-backed certificates, consumer receivable pass-through certificates, or consumer receivable-backed bonds, and medium-term notes (issued by U.S. Corporations) of a maximum of five years with a minimum rating category of “A” by a nationally recognized rating service, notes, bonds, or other obligations secured by a valid first priority security interest, and the State Treasurer’s Investment Pool (LAIF). Reverse repurchase agreements may be made only when prior approval of the City Council has been given.

C. Investments in Local Agency Investment Fund (LAIF)
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2023 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:

Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

Packet Pg. 376 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
81 Note 2 – Cash and Investments (Continued)
C. Investments in Local Agency Investment Fund (LAIF) (Continued)

As of June 30, 2023, the City had $19,576,171 invested in LAIF, which had invested 2.78% of the pool investment funds in Structured Notes (1.46%) and Asset-Back Securities (1.32%). LAIF determines the value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2023, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The fair value of the City’s position in the pool is the same as the value of the pool shares. The credit quality rating of LAIF is unrated as of June 30, 2023.

D. Investments in California Asset Management Program (CAMP) The City is a participant in CAMP which is a JPA (Joint Powers Authority) created by the Declaration of Trust and established under the provisions of the Act for the purpose of exercising the common power of its Participants to invest funds. The Trust is a JPA and a separate Public Agency established as a common law trust under the laws of the State of California by execution of a Declaration of Trust by two California Public Agencies as the initial Participants in the Trust.

The Trust is currently governed by a Board of seven Trustees, all of whom are officials or employees of Public Agencies that are Participants in the Trust. Trustees are appointed pursuant to, and are provided authority under, the Declaration of Trust.

PFMAM (PFM Asset Management) is an investment and advisory firm with offices in San Francisco, CA and Harrisburg, PA, is the Trust’s investment advisor and administrator. The daily management of the investment affairs and research relating to the Portfolios is conducted by or under the supervision of the Investment Advisor.

The following Cash Reserve Portfolio invests exclusively in the following types of investments all of which are authorized investments for Public Agencies pursuant to California Government Code Section 53601: U.S.

Government and agency obligations; Repurchase agreements collateralized by U.S. Government and agency obligations; Bankers’ acceptances; Negotiable certificates of deposit; Commercial paper, Corporate notes; Supranationals; Asset-back Securities and Money Market Funds.

As of June 30, 2023, the City has $65,000,000 invested in CAMP, which had invested the pool investment funds in a fully liquid, stable net asset value investments.

E. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City varies its maturity dates throughout the five-year maturity period. The investments with maturities greater than 5 years pertain to investment agreements within the bond issues. These agreements afford the City long-term fixed interest rates for the duration of the bond issue, with the option to utilize those funds for debt service payments and at the City’s option replenish those funds at the fixed rate until the maturity of the investment agreements. The City has no formal policy regarding interest rate risk.

Packet Pg. 377 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
82 Note 2 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
As of June 30, 2023, the City had the following investments and maturities:

Unrestricted:

Fair Less
Investment Type Value Than 1 1-2 3-4 5
Medium Term Corporate Notes 24,019,600 $ 7,406,000 $ 4,856,800 $ 11,756,800 $ - $ Federal Agency Bonds 125,487,968 21,634,204 33,494,368 39,403,186 30,956,210 Investment in State Treasurer's
Investment Pool 14,045,429 14,045,429 - - -
Mutual Funds 51,273,741 51,273,741 - - -
Total 214,826,738 $ 94,359,374 $ 38,351,168 $ 51,159,986 $ 30,956,210 $ Investments Maturities (in Years)
Restricted:

Fair Less More
Investment Type Value Than 1 1-5 Than 5
Investment in State Treasurer's Investment Pool 5,530,742 $ 5,530,742 $ - $ - $ Mutual Funds 14,615,791 14,615,791 - -
Total $ 20,146,533 20,146,533 $ - $ - $
Investments Maturities (in Years)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

As of June 30, 2023, the City’s investments in Federal Agency Bonds were rated AA and AAA by S&P. The City’s investments in Medium Term Corporate Notes were rated A, AA, and AAA by S&P. Investments in LAIF are not rated as LAIF is a State sponsored investment pool. The City policy limits the percentage invested in various instruments by category.

As of June 30, 2023, the City’s investments in CAMP were rated AAAm, AA+, AA-, A+, A-1+ by S&P and exempt.

Packet Pg. 378 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
83 Note 2 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Disclosures Relating to Concentration of Credit Risk
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:

Issuer Investment Type Amount
Federal Farm Credit Bank Federal Agency Securities 23,956,430 $ Federal National Mortgage Association Federal Agency Securities 2 $ 6,841,160 Federal Home Loan Mortgage Corporation Federal Agency Securities $ 30,157,475 Federal Home Loan Bank Federal Agency Securities 44,539,879 $ Disclosures Relating to Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits.

All securities are held in the name of the City. As a result, the City had no custodial credit risk at June 30, 2023.

Note 3 - Governmental Notes Receivable
Notes receivable represent loan agreements entered into between the City or Successor Housing Agency (the former RDA) and unrelated nongovernmental entities as part of the City’s redevelopment activities, including single-family home buyer assistance, and real estate development and construction loans. At June 30, 2023, approximately $63.94 million of notes receivable, net of $0.20 million allowance for doubtful accounts, were reported in the Community Development major fund. At June 30, 2023, approximately $15.24 million of notes receivable were reported in the Housing non-major special revenue fund. Business-type note receivable is $0.09 million.

Packet Pg. 379 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
84 Note 3 - Governmental Notes Receivable (Continued)
Balance Balance
July 1, 2022 Additions Deletions June 30, 2023
General governmental activities:

Community development fund loans
Community Development Block Grant (CDBG) 2,823,897 $ 131,334 $ (81,026) $ 2,874,205 $ HOME Investment Program (HOME) 21,886,472 2,629,704 (739,043) 23,777,133 CalHome Program 1,758,167 87,000 (106,747) 1,738,420
Other California Programs (AHSC, IIG) 14,527,108 15,757,981 - 30,285,089 City Affordable Housing Loan Fund (AHLF) 2,041,597 3,224,975 - 5,266,572 Total community development fund loans 43,037,241 21,830,994 (926,816) 63,941,419 Allowance for bad debt (197,410) - 5,081 (192,329)
Community development fund notes receivable, net 42,839,831 21,830,994 (921,735) 63,749,090 Housing fund loans
Low Mod Income Housing Asset Fund 15,290,900 205,418 (260,201) 15,236,117 Total housing fund loans 15,290,900 205,418 (260,201) 15,236,117 Allowance for bad debt - - - -
Housing fund loans receivable, net 15,290,900 205,418 (260,201) 15,236,117 Total governmental note receivable 58, 22,036,412 130,731 (1,181,936) 78,985,207 Business-type activities:

Electric utility loans
Redding Rodeo note 112,321 - (21,633) 90,688
Total business-type note receivable - 112,321 (21,633) 90,688 Total note receivable 58,243,052 $ 22,036,412 $ (1,203,569) $ 79,075,895 $ Note 4 – Lease Receivable
Summary of changes in governmental activities leases receivable for the year ended June 30, 2023 is as follows:

Balance Balance Due within Due in more
July 1, 2022 Additions Deletions June 30, 2023 One Year than One Year Lease receivable
Governmental-type activities 2,056,745 $ 677,237 $ (300,660) $ 2,433,322 $ 354,147 $ 2,079,175 $ Business-type activities 7,613,375 2,787,408 (1,297,045) 9,103,738 794,272 8,309,466 Total lease receivable $ 3,464,645 9,670,120 $ (1,597,705) $ 11,537,060 $ 1,148,419 $ 10,388,641 $ Packet Pg. 380 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
85 Note 4 – Lease Receivable (Continued)
A portion of the City's property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with others for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 2 to 25 years. The calculated interest rates used are based on the 5, 7, or 10-year Constant Maturities Treasury Bill Index plus a margin of 3%. It is City policy to recognize leases as a lease receivable when the present value meets or exceeds $15,000. Lease revenues are recognized as operating revenues in proprietary funds and as charges for services in governmental funds. The City municipal airport holds the majority of the leases recognized, with a balance at June 30, 2023 of $7,444,222.

Governmental-type activities
Lease receivable
Year Ending June 30, Principal Interest Total Deferred Inflows 2024 354,147 $ 90,506 $ 354,037 $ 354,147 $
2025 311,291 82,457 411,464 311,291
2026 183,298 72,581 359,804 183,298
2027 180,899 64,568 221,157 180,899
2028 171,494 56,821 200,884 171,494
2029-2033 703,481 171,804 687,383 703,481
2034-2038 197,695 84,552 136,533 197,695
2039-2043 190,622 46,066 42,120 190,622
2044-2048 140,395 9,187 1,250 140,395
Total 2,433,322 $ 678,542 $ 2,414,632 $ 2,433,322 $
Business-type activities
Lease receivable
Year Ending June 30, Principal Interest Total Deferred Inflows 2024 794,272 $ 441,993 $ 1,010,051 $ 794,272 $
2025 742,657 409,184 1,085,881 742,657
2026 673,985 379,500 1,009,309 673,985
2027 579,367 351,927 901,709 579,367
2028 589,923 325,709 809,117 589,923
2029-2033 1,950,092 1,325,984 2,944,846 1,950,092
2034-2038 1,199,397 945,120 1,788,281 1,199,397
2039-2043 524,444 741,660 217,423 524,444
2044-2048 845,080 532,186 217,423 845,080
2048-2053 1,204,521 201,781 217,423 1,204,521
Total 9,103,738 $ 5,655,044 $ 10,201,463 $ 9,103,738 $
Packet Pg. 381 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
86 Note 5 – Interfund Activities
A. Due From and Due To Other Funds
At June 30, 2023, due to and due from other funds balances are as follows:

Due From
Other Funds
Due To Other Funds General Fund Total
Governmental funds:

Nonmajor governmental funds 82,385 $ 82,385 $
Enterprise funds:

Nonmajor enterprise funds 5, 5,733,215 733,215
Total $ 5,815,600 5,815,600 $
Short-term loans recorded as due to and due from other funds were for cash shortages for operations.

B. Interfund Receivable and Payable
At June 30, 2023, interfund receivable and payable balances are as follows:

Electric Water Wastewater Solid Waste Internal
General Utility Utility Utility Utility Service
Interfund Payable Fund Fund Fund Fund Fund Funds Total
Governmental Funds:

Major Governmental Funds
Community Development - $ 1,762,014 $ 692,220 $ 471,968 $ 220,252 $ - $ 3,146,454 $ Enterprise funds:

Nonmajor enterprise funds - - - - - 112,571 112,571
Internal service funds 25,000 - - - - - 25,000
Total $ 1,762,014 25,000 $ 692,220 $ 471,968 $ 220,252 $ 112,571 $ 3,284,025 $ Interfund Receivable
Interfund receivables and payables represented the portion of Advances that are expected to be repaid within one year.

Packet Pg. 382 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
87 Note 5 – Interfund Activities (Continued)
C. Advances To and From Other Funds
At June 30, 2023, long-term advances consisted of the followings:

Internal
General Electric Service
Fund Utility Funds Total
Governmental funds:

General fund - $ 4,006,269 $ - $ 4,006,269 $
Nonmajor: governmental funds - 233,782 186,912 420,694
Enterprise funds:

Nonmajor: enterprise funds - - 3,008,537 3,008,537
Internal service funds 6,250 - - 6,250
Total $ 4,240,051 6,250 $ 3,195,449 $ 7,441,750 $
Advances from other funds
Advances to Other Funds
a) The Electric Utility loaned the Parking Fund additional funds for another parking structure at the Downtown Mall. The outstanding balance at year-end was $233,782; all of which is classified as long-term. b) The Electric Utility Fund advanced $3,621,500 to the General Fund for the replacement of the Redding Soccer Park turf. The outstanding balance of the advance including accrued interest at the City’s average earnings on its pooled cash is $527,938; all of which is classified as long-term. c) The General Fund has advanced funds to the Parking Fund to cover operating expenditures. This balance has been transferred to the Risk Management Fund and had a balance of $186,913 at year-end; all of which is classified as long-term.
d) In recent years the General Fund has advanced $8,917,054 to the Airport Fund to finance improvements and operating expenses. The balance was transferred to the Risk Management Fund during the 2009-2010 fiscal year. The Airport Fund has repaid $7,367,640 to date. At year-end the balance was $1,549,384. Of this amount $1,524,384 is classified as long-term.
e) In recent years the General Fund has advanced $1,374,847 to the Convention Center Fund to finance improvements and operating expenses. The balance was transferred to the Risk Management Fund during the 2009-2010 fiscal year. The balance at year-end was $786,716; of this amount $699,145 is classified as longterm. f) The Risk Management Fund advanced funds to the Convention Center Fund to finance additional improvements. At year-end the balance was $785,007; all of which is classified as long-term at year-end. g) The Electric Fund advanced funds of $681,400 to the General Fund by paying for a portion of the Redding Police Department’s share of the communication platform overhaul. An additional advance was taken in fiscal year 2021-22 in the amount of $1,340,345 and $1,384,510 in fiscal year 2022-23. The outstanding balance of the advance including accrued interest at the City’s average earnings on its pooled cash is $3,478,331; all of which is classified as long term.
h) The General Fund advanced funds of $75,000 to Employer Services for software licensing. At year-end the balance was $31,250; of which $6,250 is classified as long-term.

Packet Pg. 383 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
88 Note 5 – Interfund Activities (Continued)
D. Internal Balance Summary
At June 30, 2023, the internal balance summary consisted of the followings:

Governmental Funds
General
Fund
Community
Development
Special
Revenue
Internal
Service
Funds Total
Assets
Due from other funds 5,815,600 $ - $ - $ - $ 5,815,600 $ Interfund receivable 25,000 - - 112,571 137,571
Advances to other funds 6,250 - - 3,195,449 3,201,699
- 5,846,850 - 3,308,020 9,154,870
Liabilities
Due to other funds - - 82,385 - 82,385
Interfund payable - 3,146,454 - 25,000 3,171,454
Advances from other funds 4,006,270 - 420,694 6,250 4,433,214 3,146,454 4,006,270 503,079 31,250 7,687,053
Net difference 1,467,817
Business-type portion of the internal service funds 13,840,733 Statement of net assets internal balance $ 15,308,550
Electric
Utility Water Utility
Wastewater
Utility
Solid
Waste
Nonmajor
Enterprise Total
Assets
Due from other funds - $ - $ - $ - $
Interfund receivable 1,762,014 692,220 471,968 220,252 - 3,146,454 Advances to other funds 4,240,051 - - - - 4,240,051
692,220 6,002,065 471,968 220,252 - 7,386,505
Liabilities
Due to other funds - - - - 5,733,214 5,733,214
Interfund payable - - - - 112,571 112,571
Advances from other funds - - - - 3,008,537 3,008,537
- - - - 8,854,322 8,854,322
Net difference (1,467,817)
Business-type portion of the internal service funds (13,840,733) Statement of net assets internal balance $ (15,308,550) Proprietary Funds
Packet Pg. 384 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
89 Note 5 – Interfund Activities (Continued)
E. Transfer In and Out
The following operating transfers were made during the fiscal year-ended June 30, 2023:

Transfers Out General Fund
Nonmajor
Governmental
Funds
Electric
Fund Water
Nonmajor
Enterprise
Funds
Internal
Service
Funds Total
Governmental funds:

Major funds:

General fund - $ 965,276 $ 24,250 $ 6,500 $ 1,880,310 - $ 2,876,336 $ General capital projects fund 33,711 - - - - - 33,711
Nonmajor governmental funds 9,961,536 - - - - - 9,961,536 Enterprise funds:

Major enterprise funds:

Electric 9,453,543 - - - - 17,607 9,471,150
Water - - - - 94,068 38,238 132,306
Wastewater - - - - 309,922 - 309,922
Nonmajor enterprise funds 245,000 - - - - - 245,000
Internal service funds - - - - 22,001 47,041 69,042
Total $ 965,276 19,693,790 $ 24,250 $ 6,500 $ 2,306,301 $ 102,886 $ 23,099,003 $ Transfers In
The reasons for these transfers are set forth below:
a) The General Fund transferred a portion of the transient occupancy tax to the Convention Center per City policy. b) The General Fund transferred funds to the Library for operations. c) The Airports and Electric Enterprise Funds transfer funds to the General Fund in lieu of property tax. d) Within the Nonmajor Governmental Funds, gas taxes and other special revenues are transferred to the General Fund to pay for related expenditures such as street maintenance and public safety. In addition, funds were transferred to the capital project fund to cover portions of qualified projects. e) The Electric Utility transferred electric vehicles to Internal Service Fund Fleet and General Fund. f) Funds transferred for used vehicles purchased internally per City policy between General Fund, Electric, and Internal Service Funds.

Packet Pg. 385 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
90 Note 6 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for the year ended June 30, 2023 consisted of the following:

Balance Balance
July 1, 2022 Additions Deletions Transfers June 30, 2023 Total governmental activities:

Capital assets, not being depreciated:

Land 36,206,978 $ 219,766 $ - $ - $ 36,426,744 $
Construction in process 43,134,453 24,652,324 - (416,830) 67,369,947 24,872,090 79,341,431 - (416,830) 103,796,691
Capital assets, being depreciated:

Buildings 64,865,090 - - - 64,865,090
Improvements other than buildings 106,668,669 - - 416,830 107,085,499 Infrastructure 345,473,565 4,939,008 - - 350,412,573
Automotive equipment 20,039,206 2,085,666 (1,869,808) 178,482 20,433,546 Furnishings and equipment 11,403,295 1,176,188 (130,580) 19,006 12,467,909 Assets under lease:

Right-to-use improvements 86,028 27,649 - - 113,677
Right-to-use automotive equipment 355,645 253,742 - - 609,387 Right-to-use subscription 100,070 248,664 - - 348,734
8,730,917 548,991,568 (2,000,388) 614,318 556,336,415
Accumulated depreciation:

Buildings (39,960,213) (2,023,784) - - (41,983,997)
Improvements other than buildings (74,114,929) (3,710,122) - - (77,825,051) Infrastructure (143,069,633) (9,490,846) - - (152,560,479) Automotive equipment (13,041,470) (1,246,914) 1,863,925 (144,638) (12,569,097) Furnishings and equipment (9,608,627) (575,398) 130,580 (6,437) (10,059,882) Assets under lease:

Right-to-use improvements (34,981) (35,396) - - (70,377) Right-to-use automotive equipment (65,658) (116,788) - - (182,446) Right-to-use subscription - (84,233) - - (84,233)
Total accumulated depreciation (279,895,511) (17,283,481) 1,994,505 (151,075) (295,335,562) Total capital assets,
being depreciated, net 269,096,057 (8,552,564) (5,883) 463,243 261,000,853 Total governmental activities $ 16,319,526 348,437,488 $ (5,883) $ 46,413 $ 364,797,544 $ Total capital assets, being depreciated
Total capital assets, not being depreciated
Depreciation expense was charged to governmental activities as follows:

Program Depreciation
General government 1,521,403 $
Police 1,103,738
Fire 707,874
Public works 9,678,902
Recreation and culture 4,243,287
Community development 28,277
Total 17,283,481 $
Packet Pg. 386 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
91 Note 6 – Capital Assets (Continued)
B. Business-Type Activities
Summary of changes in capital assets for the year ended June 30, 2023 consisted of the following:

Balance Balance
July 1, 2022 Additions Deletions Transfers June 30, 2023 Business-type activities:

Capital assets, not being depreciated:

Land 20,394,310 $ - $ - $ - $ 20,394,310 $
Construction in progress 34,487,991 24,178,715 (110,850) (3,355,880) 55,199,976 24,178,715 54,882,301 (110,850) (3,355,880) 75,594,286
Capital assets, being depreciated:

Utility plants 896,360,045 13,572,258 (2,101,222) 3,355,880 911,186,961 Buildings 78,452,567 - (245,095) - 78,207,472
Improvements other than buildings 57,475,256 - (748,337) - 56,726,919 Automotive equipment 49,739,026 2,358,715 (1,924,994) 665,595 50,838,342 Furnishings and equipment 33,915,792 1,527,961 (1,158,955) (867,797) 33,417,001 Assets under lease:

Right-to-use equipment 124,056 140,546 - - 264,602
Right-to-use subscription 4,791,202 15,426 - - 4,806,628 17,614,906 1,120,857,944 (6,178,603) 3,153,678 1,135,447,925 Less accumulated depreciation for:

Utility plants (501,872,519) (22,679,849) 1,687,199 - (522,865,169) Buildings (49,829,096) (2,190,460) 245,098 - (51,774,458) Improvements other than buildings (34,441,208) (1,882,102) 748,336 - (35,574,974) Automotive equipment (29,174,449) (3,612,743) 1,410,008 67,264 (31,309,920) Furnishings and equipment (24,351,554) (2,422,809) 1,159,220 88,525 (25,526,618) Assets under lease:

Right-to-use equipment (62,951) (71,730) - - (134,681)
Right-to-use subscription - (1,043,432) - - (1,043,432) Total accumulated depreciation (639,731,777) (33,903,125) 5,249,861 155,789 (668,229,252) Total capital assets,
being depreciated, net 481,126,167 (16,288,219) (928,742) 3,309,467 467,218,673 Total business-type activities $ 7,890,496 536,008,468 $ (1,039,592) $ (46,413) $ 542,812,959 $ Total capital assets, not being depreciated
Total capital assets, being depreciated
Depreciation expense was charged to the business-type activities as follows:

Program Depreciation
Electric 15,206,586 $
Water 4,102,715
Wastewater 7,319,789
Storm drainage 1,111,913
Solid waste 2,889,534
Airport 1,804,115
RABA 1,392,724
Convention center 75,749
Total 33,903,125 $
Packet Pg. 387 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
92 Note 7 – Power Acquisition Costs
The Redding Electric Utility (REU) entered into an agreement in 1986 with the Western Area Power Administration (WAPA) to build a second interconnection point between REU’s internal electric 115kv transmission grid and the surrounding WAPA 230kv transmission grid. REU paid WAPA to build the Airport Road Substation to affect this connection and convert the 230kv surrounding power to 115kv for use on REU’s lines. After completion, REU gained title to the 115kv side of the substation, while WAPA retained ownership of the 230kv side. Since REU paid for the construction of the 230kv side and benefits from its presence, the cost of this has been set up as an asset and is being amortized over the 34 year useful life of the substation.

Power acquisition cost 3,470,314 $
Less: amortization (3,470,314)
Power acquisition cost, net - $
For the year ended June 30, 2023, amortization expense was $35,284.

Note 8 – Storage Base Gas
Redding Electric Utility (REU) entered into a natural gas lease agreement on August 28, 2009 with Gill Ranch Storage, LLC (GRS) in which GRS (Lessee) would provide firm natural gas storage service to REU (Lessor). The firm storage service is provided at the GRS facility in Madera County, California, near the City of Fresno. 2,250,000 Dth of natural gas was initially acquired by REU for GRS’ use as base gas under the lease at a total cost of $11,850,000. Additionally, in order to effect the right to offset provisions per the lease contract between REU and GRS, REU paid GRS an amount equal to $1,720,000. The total cost to REU to implement this lease agreement was $13,570,000. The lease arrangement dictates that GRS shall make monthly payments to REU as rent for the base gas in an amount equal to $100,000 per month. If REU does not purchase and deliver to GRS the base gas then GRS shall not be required to pay rent to REU.

As of June 30, 2023, the lease agreement between Redding Electric Utility and Gill Ranch Storage, LLC continues to be in effect.

Note 9 – Unavailable Revenue
On the fund financial statements, unavailable revenue consisted of the following as of June 30, 2023:

General Community Nonmajor
General Capital Projects Development Governmental
Fund Fund Fund Funds Total
Unavailable revenues:

Sales tax 58,968 $ - $ - $ - $ 58,968 $
Property taxes 839,298 - - - 839,298
Grant revenue 1,026,663 19,097,241 8,455,497 56,403 28,635,804 Shasta Area Safety
Communications Agency 72,574 - - - 72,574
Assessments - - - 309,613 309,613
Housing loans - interest - - 2,835,593 2,588,124 5,423,717 HUD funds - - - 41,380 41,380
Total 1,997,503 $ 19,097,241 $ 11,291,090 $ 2,995,520 $ 35,381,354 $ Packet Pg. 388 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
93 Note 10 – Long-Term Debt
Summary of changes in long-term debt for the year ended June 30, 2023, is as follows:

Balance Balance Due within Due in more
July 1, 2022 Additions Deletions June 30, 2023 One Year than One Year Governmental activities:

Long-term debt:

SBITAs 100,070 $ 248,664 $ (75,825) $ 272,909 $ 129,469 $ 143,440 $ Leases 337,831 216,975 (128,352) 426,454 146,174 280,280 Revenue bonds 27,638,896 - (2,034,113) 25,604,783 1,639,782 23,965,001 Loan - 648,138 (74,572) 573,566 118,193 455,373
Long-term debt before
unamortized amounts 28,076,797 1,113,777 (2,312,862) 26,877,712 2,033,618 24,844,094 Bond premium 2,868,981 - (130,904) 2,738,077 130,904 2,607,173 Bond discount (38,141) - 3,644 (34,497) (2,184) (32,313) 1,113,777 30,907,637 (2,440,122) 29,581,292 2,162,338 27,418,954 Business-type activities:

Long-term debt:

SBITAs 4,791,202 15,426 (975,345) 3,831,283 958,803 2,872,480 Leases 64,956 140,546 (74,685) 130,817 48,319 82,498
Revenue bonds 145,761,103 - (14,690,889) 131,070,214 13,540,215 117,529,999 State loans payable 1,128,439 - (793,902) 334,537 31,181 303,356 Long-term debt before
unamortized amounts 151,745,700 155,972 (16,534,821) 135,366,851 14,578,518 120,788,333 Bond premium 23,194,156 - (2,222,804) 20,971,352 2,222,804 18,748,548 155,972 174,939,856 (18,757,625) 156,338,203 16,801,322 139,536,881 Total long-term debt $ 1,269,749 205,847,493 $ (21,197,747) $ 185,919,495 $ 18,963,660 $ 166,955,835 $ Total governmental
activities long-term debt
Total business-type
activities long-term debt
Current year amortization expense for bond premiums and discounts was $127,260 for the governmental activities and $2,222,804 for the business-type activities.

The annual requirements to amortize all debt outstanding as of June 30, 2023, excluding obligations associated with bond premiums (discounts) are as follows:

Year Ending
June 30, Principal Interest Principal Interest Principal Interest 2024 2,033,618 $ 1,292,773 $ 14,578,518 $ 6,712,106 $ 16,612,136 $ 8,004,879 $ 2025 1,875,987 1,198,431 15,179,186 5,968,414 17,055,173 7,166,845 2026 1,917,678 1,100,002 15,640,690 5,186,822 17,558,368 6,286,824 2027 1,283,361 994,664 16,392,526 4,388,081 17,675,887 5,382,745 2028 1,202,066 926,119 16,803,275 3,556,933 18,005,341 4,483,052 2029-2033 6,585,000 3,668,030 49,680,269 6,863,675 56,265,269 10,531,705 2034-2038 6,130,002 1,961,681 7,092,387 414,882 13,222,389 2,376,563 2039-2043 4,780,000 755,603 - - 4,780,000 755,603
2044-2048 1,070,000 33,001 - - 1,070,000 33,001
Total $ 11,930,304 26,877,712 $ 135,366,851 $ 33,090,913 $ 162,244,563 $ 45,021,217 $ Governmental Activities Business-Type Activities Government-Wide Packet Pg. 389 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
94 Note 10 – Long-Term Debt (Continued)
Governmental activities Issue
Amount
Balance
06/30/2023 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
2013 Lease Revenue Bonds, Series B
Principal Payment $ 6,149,783 9,046,060 $ 379,782 $ 235,000 $ 245,000 $ 255,000 $ Bond Discount (34,497) (120,916) (2,184) (1,678) (1,678) (1,678) 2013 Lease Revenue Bonds, Series C
Principal Payment 1,375,000 2,135,000 105,000 110,000 120,000 125,000 2019 Lease Revenue Bonds, Series A
Principal Payment 18,080,000 24,085,000 1,155,000 1,210,000 1,275,000 695,000 Bond Premium 2,738,077 3,272,602 130,904 130,904 130,904 130,904 2022 Parking Loan
Principal Payment 573,566 648,138 118,193 126,257 134,870 144,071 Leases Payable
Principal Payment 426,454 646,602 146,174 117,111 76,987 64,290 SBITAs Payable
Principal Payment 272,909 348,734 129,469 77,619 65,821 - Total governmental activities $ 29,581,292 40,061,220 $ 2,162,338 $ 2,005,213 $ 2,046,904 $ 1,412,587 $ Business-type activities
2013 California Airport Loan-Benton
Principal Payment $ 191,266 350,000 $ 21,014 $ 21,782 $ 22,578 $ 23,404 $ 2018 California Airport Loan- Benton
Principal Payment 143,271 190,000 10,167 10,459 10,760 11,069 2013 Lease Revenue Bonds, Series B
Principal Payment 80,215 693,940 80,215 - - -
2020 Wastewater Revenue Bonds
Principal Payment 38,490,000 52,420,000 3,680,000 3,865,000 4,060,000 4,260,000 Bond Premium 10,062,984 12,075,581 754,724 754,724 754,724 754,724 2018 Electric Systems Revenue
Bonds, Series A
Principal Payment 24,429,999 39,510,000 3,000,000 3,155,000 3,305,000 3,475,000 Bond Premium 3,432,187 6,232,541 525,067 525,067 525,067 525,067 2017 Electric Systems Revenue
Bonds, Series A
Principal Payment 37,450,000 55,785,000 4,600,000 4,830,000 5,075,000 5,320,000 Bond Premium 4,854,091 9,436,880 733,246 733,246 733,246 733,246 2015 Electric Systems Revenue
Bonds,
Series A
Principal Payment 30,620,000 3,755,000 2,180,000 2,285,000 2,405,000 2,530,000 Bond Premium 2,622,090 4,195,346 209,767 209,767 209,767 209,767 Leases Payable
Principal Payment 130,817 264,602 48,319 43,485 39,013 - SBITAs Payable
Principal Payment 3,831,283 4,806,628 958,803 968,460 723,339 773,053 Total business-type activities $ 156,338,203 189,715,518 $ 16,801,322 $ 17,401,990 $ 17,863,494 $ 18,615,330 $ *Additional Information on the Bond Issues follows this note.

Packet Pg. 390 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
95 Note 10 – Long-Term Debt (Continued)
FY 2027-28 FY 2029-33 FY 2034-38 FY 2039-43 FY 2044-48 Thereafter Final
Maturity
Interest
Rate
2043 2-5%
$ 1,565,000 265,000 $ 1,320,002 $ 1,530,000 $ 354,999 $ - $ (8,390) (1,678) (8,390) (8,390) (431) -
2032 3.75-6.5%
785,000 130,000 - - - -
2044 3.125-5%
4,235,000 735,000 4,810,000 3,250,000 715,000 -
654,520 130,904 654,520 654,520 119,997 -
2027 6.62%
- 50,175 - - - -
2027 3.89%
- 21,892 - - - -
2026 7.13%
- - - - - -
$ 7,231,130 1,331,293 $ 6,776,132 $ 5,426,130 $ 1,189,565 $ - $ $ 78,229 24,259 $ - $ - $ - $ - $ 2031 3.655%
62,041 11,388 27,387 - - - 2035 2.87%
- - - - - - 2032 2-5.5%
16,540,000 4,475,000 1,610,000 - - - 2036 5%
3,773,620 754,724 2,515,744 - - -
3,829,999 3,645,000 4,020,000 2030 4-5%
806,852 525,067 - - - -
12,035,000 5,590,000 - - - - 2030 3-5%
1,187,861 733,246 - - - -
13,115,000 2,650,000 5,455,000 - - - 2035 2-5%
1,048,835 209,767 524,420 - - -
- - - - - - 2023 3.89%
- 407,628 - - - - 2023 7.13%
$ 52,477,437 19,026,079 $ 14,152,551 $ - $ - $ - $
Packet Pg. 391 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
96 Note 10 – Long-Term Debt (Continued)
2013 Lease Revenue Bonds, Series B and C
The 2013 Lease Revenue Bonds, Series B and Series C were issued to finance the construction of the Redding police building and refinance the 2003 Aquatic Center, the Sports Complex, SHASCOM, Convention Center and the Municipal Airport, which was used to refinance the 1993 Lease Revenue Bonds for SHASCOM, Convention Center and the Municipal Airport.

The Bonds are payable from the operating revenues of the Redding Aquatic Center, Sports Complex, SHASCOM, Convention Center, and Municipal Airport Funds. The security for the bonds is the title to the City's existing police facility, its SHASCOM communications facility, the Redding Aquatic Center and the land on which the to-beconstructed police facility will be located to the Authority, and the City will lease back the leased property from the Authority pursuant to the facilities lease.
2019 Lease Revenue Bonds, Series A
The 2019 Lease Revenue Bonds, Series A were issued to refinance the 2004 Capital Projects Series A & B, 2004 Civic Center Refunding Series C, and the 2007 Capital Project Series A and to finance acquisition and construction of capital projects within the City of Redding. Payable from revenues generated pursuant to the Facilities Lease between the Redding Joint Powers Financing Authority (Authority) and the City of Redding whereby the City has transferred title to its Civic Center and leases it back from the Authority.

The Bonds are payable from revenues generated pursuant to the Facilities Lease between the Redding Joint Powers Financing Authority (Authority) and the City of Redding whereby the City has transferred title to its Civic Center and leases it back from the Authority.
2022 Parking Loan
The 2022 Parking Loan was for the purchase of electronic parking meter pay stations for downtown Redding. 2013 California Airport Loan (Benton)
The 2013 California Airport Loan (Benton) was to repay the California Highway Patrol Hangar at the Benton Airpark. 2015 California Airport Loan (Municipal)
The 2015 California Airport Loan (Municipal) was for the PV Solar Array lease purchase at the Redding Municipal Airport.
2018 California Airport Loan (Benton)
The 2018 California Airport Loan (Benton) was for the construction of a new hangar roof and other exterior improvements at the Benton Airpark.

Packet Pg. 392 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
97 Note 10 – Long-Term Debt (Continued)
2020 Wastewater Revenue Bonds
The 2020 Wastewater Revenue Bonds, Series A were issued to refinance twelve State Water Resource Control Board (SWRCB) loans, which were used to finance capital improvements to the City’s wastewater system and cost of issues for the 2020 bonds.

The payments are payable from operating revenue of the Wastewater Utility Fund. The 2020 bonds are special obligations of the City payable solely from and secured by a pledge of and lien on net revenues of the wastewater system and all monies on deposit in the Wastewater Revenue Fund. 2018 Electric System Revenue Bonds
The 2018 Electric System Revenue Bonds, Series A were issued to prepay and refund a portion of the City’s outstanding 2008 A Electric System Certificates of Participation Bonds and pay costs of issuance monies on deposit in the Electric Revenue Fund of the City.

The payments are payable from operating revenues of the Electric Utility Fund. The 2018 bonds are special obligations of the City payable solely from and secured by a pledge of and lien on net revenues of the electric system and all monies on deposit in the Electric Revenue Fund of the City. 2017 Electric System Revenue Bonds
The 2017 Electric System Revenue Bonds, Series A were issued to prepay and refund a portion of the City’s outstanding 2008 A Electric Systems Certificates of Participation Bonds and pay cost of issuance of the 2017 bonds.

The payments are payable from operating revenues of the Electric Utility Fund. The 2017 bonds are special obligation of the City payable solely from and secured by a pledge of and lien on net revenues of the electric system and all monies on deposit in the Electric Revenue Fund of the City. 2015 Electric System Revenue Bonds
The 2018 Electric System Revenue Bonds, Series A were issued to finance the cost of design, acquisition and construction of new administrative building for the Electric Utility of the City and to refinance the 2005 Electric Certificates of Participation Bonds, which were used to provide funds to finance costs of acquisition and construction of certain additions, betterments and improvements to the City’s electric system. These payments are payable from operating revenues of the Electric Utility Fund.

Leases
The leases are contracts that convey control of the right to use another entity’s nonfinancial asset as specified in the contract for a period of time in exchange or exchange-like transaction. The City primarily leases vehicles, parking lots, and solar trashcans.

Subscription Based Information Technology Arrangements (SBITA’s) SBITA’s are subscription-based contracts that convey the control of the right to use vendor-provided information technology software, which provides governments with access to vendors’ IT software and associated tangible capital assets for subscription payments without granting government perpetual license or title to the IT software and associated tangible capital assets.

Packet Pg. 393 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
98 Note 11 – Pledged Revenue
Revenue Pledged
Borrowing
Fund/Entity Bond/Loan Use of Funds
Year of Loan or
Year Repayments
and/or Interest
Payments Began
Original
Issue/Loan
Amount
Net Revenues Water Utility Bond Refund prior debt
issues.
2013 6,165,000 $
Net Revenues Wastewater
Utility
Bond Refund prior debt
issues. (SRF Loan)
2020 52,420,000
Net Revenues Plus
Reserves
Electric Utility Bond Refund prior debt 2015 37,955,000 Net Revenues Plus
Reserves
Electric Utility Bond Refund prior debt 2017 55,785,000 Net Revenues Plus
Reserves
Electric Utility Bond Refund prior debt 2018 39,510,000

Packet Pg. 394 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
99 Note 11 – Pledged Revenue (Continued)
Payments
Amortized
Thru
Estimated % of
Pledged
Revenue
Required for
Debt Service
Estimated % of
Pledged
Revenue Plus
Reserves
Required for
Debt Service
Remaining
Principal &
Interest
Current Year
Principal &
Interest Paid
Current Year
Pledged
Revenue
Available
Reserve
Balance
2023 8% 8% - $ 733,200 $ 9,474,644 $ - $
2036 41% 41% 48,875,500 6,723,000 16,468,528 -
2035 11% 3% 39,658,395 3,608,520 33,291,021 70,486,678
2030 19% 6% 45,304,500 6,471,500 33,291,021 70,486,678
2030 13% 4% 29,553,500 4,224,500 33,291,021 70,486,678

Packet Pg. 395 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
100
Note 12 – Compensated Absences
The compensated absences liability will be paid from the General Fund, Housing Authority, Community Development, Airports, Electric Utility, Water Utility, Wastewater Utility, Solid Waste Utility, Storm Drainage Utility, Equipment Fund, Information Systems, General Support Services, Risk Management and Municipal Utility Support.

The City’s changes in compensated absences for the year ended June 30, 2023 were as follows:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Governmental activities 13,752,143 $ 7,433,134 $ (6,798,312) $ 14,386,965 $ 4,961,543 $ 9,425,422 $ Business-type activities 9,057,267 5,788,619 (4,483,753) 10,362,133 3,403,589 6,958,544 Total 22,809,410 $ 13,221,753 $ (11,282,065) $ 24,749,098 $ 8,365,132 $ 16,383,966 $ Note 13 – Self-Insurance
The City administers self-insurance programs for general liability and workers’ compensation. These programs are accounted for in the Risk Management Fund. Liability for each claim is estimated on a case-by-case basis for all pending claims. There has been no significant reduction in any of the insurance coverages from the prior year. Costs in the City’s Risk Management Fund have not exceeded charges to the various funds of the City and its component units. Settled claims resulting from these risks have not exceeded co-insurance plan coverage or commercial insurance coverage in any of the past three fiscal years. The City is also self-insured for health benefits and is a member of CSAC Excess Insurance Authority which administers the health benefits program.

Employee Health Insurance - The City is part of the California Public Entity Public Insurance Authority, a joint powers authority. The Risk Management Fund recognizes revenue from fund charges and accounts for actual expenditures. Funds determined to be at risk are charged estimated claims expense based on salary. The interfund charges are reported as an expense or expenditure in the at risk fund. The estimated liability for pending and incurred but not reported employee health insurance claims relating to July 1, 2022 and prior at June 30, 2023, has been included as an accrued liability in the risk management internal service fund.

Workers’ Compensation Insurance is administered as a co-insurance plan. The City is self-insured up to $750,000 with an insurance company co-insuring claims from $750,001 to $50,000,000. Funds determined to be at risk are charged a percentage of the total estimated insurance and claim expense. Percentages are based upon loss experience and salary costs. The interfund charges are reported as an expense or expenditure in the fund at risk. The estimated liability for pending and incurred but not reported claims at June 30, 2023, has been included in the Risk Management Fund’s claims payable amount as of June 30, 2023.

General Liability Insurance is self-administered and is self-insured up to $750,000. Any claims from $750,001 to $40,000,000 are administered through a governmental pooling joint powers authority, California Joint Powers Risk Management Authority. The Risk Management Fund recognizes revenue from fund charges and accounts for actual expenditures. Funds determined to be at risk are charged a percentage of the total estimated insurance and claim expense. Percentages are based upon loss experience and salary. The interfund charges are reported as an expense or expenditure in the funds at risk. Incurred but not reported claims liability has been included in the claims payable amount as of June 30, 2023.

Packet Pg. 396 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
101
Note 13 – Self-Insurance (Continued)
Property Insurance is administered as a co-insurance plan. The City is self-insured for claims up to $250,000 for all Risk and $500,000 for Wildfire. An insurance company co-insures claims over $250,000 for all Risk and $500,000 for Wildfire. Additionally, the City has acquired coverage for the Redding Power Plant up to $100,000,000 with various sub-limits and deductibles for different types of losses. The Risk Management Fund recognizes revenue from fund charges and accounts for actual expenditures. Funds determined to be at risk are charged a percentage of the total estimated insurance and claim expense. Percentages are based upon loss experience and salary costs. The interfund charges are reported as an expense or expenditure in the funds at risk. Incurred but not reported claims liability has been included in the claims payable amount as of June 30, 2023.

The following is a reconciliation of changes in claims liability amounts for fiscal years ended June 30, 2023:

Claims Claims
For the Years Payable Claims Claims Payable Due within Due in More Ended June 30, July 1, Incurred Payments June 30, One Year Than One Year Workers' Compensation
2021 13,556,290 2,024,198 (2,036,288) 13,544,200 3,325,620 10,218,580 2022 13,554,200 2,784,524 (3,053,554) 13,285,170 4,567,826 8,717,344 2023 13,285,170 2,918,791 (3,316,091) 12,887,870 4,614,008 8,273,862 General Liability
2021 2,413,960 1,298,173 (750,213) 2,961,920 639,000 2,322,920 2022 296,920 2,479,008 (1,251,548) 4,189,380 2,400,823 1,788,557 2023 4,189,380 2,972,395 (1,645,155) 5,516,620 3,495,427 2,021,193 Health and Dental
2021 110,990 24,386,443 (24,398,343) 99,090 99,090 -
2022 99,090 25,573,792 (25,490,492) 182,390 182,390 -
2023 182,390 26,676,115 (26,745,755) 112,750 112,750 -
Total
2021 16,081,240 27,708,814 (27,184,844) 16,605,210 4,063,710 12,541,500 2022 13,950,210 30,837,324 (29,795,594) 17,656,940 7,151,039 10,505,901 2023 17,656,940 32,567,301 (31,707,001) 18,517,240 8,222,185 10,295,055 Note 14 – Individual Fund Disclosures
The following fund reported a deficit fund balance as of June 30, 2023:

Equipment Fund – The deficit of $2,357,239 in this fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension liability, this fund will continue to have a deficit balance.

Information Systems Fund – The deficit of $100,594 in this fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension liability, this fund will continue to have a deficit balance.

General Support Services Fund – The deficit of $3,124,256 in this fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension liability, this fund will continue to have a deficit balance.

Packet Pg. 397 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
102
Note 14 – Individual Fund Disclosures (Continued)
Risk Management Fund – The deficit of $6,670,268 in this fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension liability, this fund will continue to have a deficit balance.

Municipal Utilities Support Fund – The deficit of $5,012,694 in this fund resulted from the City funding Internal Service Funds on a cash flow basis. Until the City funds the Other Post Employment Benefit (OPEB) and the pension liability, this fund will continue to have a deficit balance.

Parking Fund – The deficit of $114,353 in this fund arose from operational losses which have been covered by the General Fund. This project is being financed by parking meter funds, parking fines and property tax increment payments. This deficit will take a number of years to eliminate.

Note 15 – Joint Ventures
The City participates in the following five joint ventures:
 M-S-R Public Power Agency
 M-S-R Energy Authority
 Transmission Agency of Northern California
 Balancing Authority of Northern California
 Modesto Irrigation District Financing Authority
A. M-S-R Public Power Agency
M-S-R Public Power Agency (the Power Agency) was formed in 1980 by the Modesto Irrigation District (MID) and the Cities of Santa Clara and Redding, California, pursuant to Section 6500, et seq., of the California Government Code. The Agency was formed to conduct research and exploration for energy sources to provide additional electric power for the electric distribution systems of its members.

The Agency is governed by a Commission which consists of one member from each of the Power Agency’s members. For action, the Commission must have a quorum (minimum of two members) present, and there must be a unanimous vote of all Commissioners present. The Treasurer of the Power Agency is designated by the Joint Powers Agreement to be the Treasurer/Controller of MID. The selection of other management positions is made by the Commission from the personnel of its members. These functions are performed without compensation to the members.

The members’ rights, property, income, and expense-sharing ratio in most all Power Agency activities prior to April 2018 are as follows: Modesto Irrigation District - 50%, City of Santa Clara - 35%, and City of Redding - 15%. The debt service through 2023, declining on-going administrative activities and other remaining obligations and costs associated with the San Juan Power Plant (described below), will remain at the 50% - 35% - 15% ratio.

The majority of activities are related to renewables (Big Horn Wind energy project described below).

Coordinating, regulatory, and compliance services costs will be shared as follows: Modesto Irrigation District – 40%, City of Santa Clara – 40%, and City of Redding – 20%. Renewable administrative services, electric product, delivery and environmental attribute rights, benefits and costs will be shared by contracted participation ratios as described below.

Packet Pg. 398 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
103
Note 15 – Joint Ventures (Continued)
A. M-S-R Public Power Agency (Continued)
The activities of M-S-R consist of a previous 28.8% ownership interest in a 498-megawatt coal-fire electricity generating plant located in New Mexico (the “San Juan” plant). The San Juan plant began commercial operation in 1982 and had been owned jointly by the Public Service Company of New Mexico (38.5%), M-S-R (28.8%), and four other municipal power entities (32.7%).

The owners of the San Juan Generation Station have approved an ownership restructuring of the San Juan Generation Station effective December 31, 2017 under which M-S-R’s (and thereby the City’s) interest in the station and its generation will be transferred to the remaining owners. Definitive agreements for the proposed ownership restructuring of the San Juan Generation Station have been executed by all nine San Juan Generation Station owners and the Public Service Company of New Mexico Resources (PNMR).

With the ownership restructuring of the San Juan Generation Station, M-S-R Public Power Agency sold its interest of the Southwest Transmission on May 25, 2016. Proceeds of the sale of the Southwest Transmission Project assets were applied primarily to the defeasance of a portion of M-S-R Public Power Agency’s outstanding revenue bonds, and to fund certain deposits for future payments to the plant decommissioning trust fund, and to the mine reclamation trust fund established under the agreements relating to the ownership restructuring of the San Juan Generation Station. At this time M-S-R have no ongoing or regular cash called expenses with regard to this divested asset other than for administrative activities and existing bonds expired in early FY 2023.

Additionally, in 2005, M-S-R entered into a 20-year power purchase agreement with PPM Energy, Inc.—now known as Avangrid Renewables, LLC (Avangrid—formerly Iberdrola Renewables) to procure 100% of the output from the Big Horn Wind Energy facility located near the town of Bickleton in Klickitat County, Washington. The project began commercial operation in October of 2006. The facility is interconnected through an 11 mile transmission line with the Bonneville Power Administration’s Spring Creek Substation. Redding receives a 35% share of the 199.5 MW project, while Santa Clara and Modesto receive 52.5% and 12.5% respectively.

In addition to the procurement of energy from the Big Horn Wind Energy facility, the Power Agency has also signed an agreement with Iberdrola Renewables—now known as Avangrid—to procure shaping and firming services for the output of the Big Horn facility. Through this agreement, Avangrid receives 100% of the output from the Big Horn facility as generated, and delivers such energy to M-S-R at the California-Oregon Border pursuant to firm pre-established delivery schedules.

Summary audited financial information of the M-S-R Public Power Agency as of and for the year ended December 31, 2022 is as follows (in thousands):

Total revenues 65,636 $
Total assets and deferred outflows 63,727 $ Total expenses (48,947) Total liabilities and deferred inflows 24,456 Net income 16,689 Total members' deficit 39,271 Members' deficit, January 1, 2022 22,582 Total liabilities and members' deficit 63,727 $ Members' deficit, December 31, 2022 39,271 $ The debt of the Power Agency is comprised entirely of revenue bonds totaling $0. The agency made its last payment on the revenue bonds in 2022. These bonds are secured by a pledge and assignment of the net electric revenues of the Power Agency and are supported by take-and-pay commitments of the participants.

Packet Pg. 399 Attachment: ACFR FY End June 30, 2023 (9.10(a)--Annual Comprehensive Financial Report-year ended June 30, 2023) City of Redding
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
104
Note 15 – Joint Ventures (Continued)
A. M-S-R Public Power Agency (Continued)
On June 13, 2018, bonds in the amount of $98,850,000, the 2018R bonds, were issued with an average interest rate of 4.71% to refund; $88,000,000 of the outstanding 2008L bonds with an average interest rate of 5.00%, and $30,595,000 and $14,685,000 of the outstanding variable interest rate 2008M and 2008N bonds, respectively. The net proceeds of the 2018R bonds plus $33,257,000 of restricted funds on hand were used to prepay the outstanding debt service requirements on the old bonds.

The cash flow requirements on the old bonds prior to the current refunding was $150,475,000 from 2018 through 2022. The cash flow requirements on the new bonds are $110,992,000 from 2018 through 2022. The current refund resulted in an economic gain of $5,147,000.

The City utilizes the equity method of accounting for M-S-R Public Power Agency. The City has invested $17.4 million in this joint venture. Operating profits have caused the City to have equity in the Power Agency of $5.9 million at December 31, 2022. Under the joint exercise of power agreement, which formed M-S-R, the City is responsible for funding up to 15% of M-S-R’s operating costs, to the extent such funding is necessary. During the year ended June 30, 2023, the City made no contributions to fund its share of prior operating deficits. If there were such contributions, they would be included in operating expenses.