Redding City Council
March 19, 2024

Item Description Qty Price
To access bottom shelf

33. Canopy Streetside - Full-Length Stationary Shelf Installed On Canopy Wall Shelves to have 2" lips
3 34. Canopy Curbside - Flip-Up Exterior Door To Access Canopy Interior To access bottom shelf
1 35. Canopy Curbside - Full-Length Stationary Shelf Installed On Canopy Wall Shelves to have 2" lips
3 36. 1st Vertical (SS) - Adjustable shelf with removable dividers on 4 in centers 2

37. 1st Vertical (SS) - Louvered panel on rear wall to ventilate compartment 1

38. 1st Vertical (SS) - Inverter storage Inside of body compartment with guard and provisions for remote GFCI receptacle (Mounted on top shelf unless otherwise specified) 1 39. 2nd Vertical (SS) - Adjustable shelf with removable dividers on 4 in centers 3

40. 2nd Vertical (SS) - Locking swivel hooks on an adjustable rail - rear wall 3

41. 1st Horizontal (SS) - Louvered panel on rear wall to ventilate compartment 1

42. Rear Vertical (SS) - Adjustable shelf with removable dividers on 4 in centers 3

43. 1st Vertical (CS) - 5 in high drawer on slides, as wide as possible, latched, with adjustable dividers
-Removable dividers on 4" centers.

Leaving approximately 8" at bottom for open storage.
5 44. 2nd Vertical (CS) - Adjustable shelf with removable dividers on 4 in centers 3

45. 2nd Vertical (CS) - Locking swivel hooks on an adjustable rail - rear wall 3

46. 1st Horizontal (CS) - Adjustable shelf with removable dividers on 4 in centers 1

47. 1st Horizontal (CS) - Fixed shelf with removable dividers on 4 in centers on bottom of compartment
1 48. Rear Vertical (CS) - Adjustable shelf with removable dividers on 4 in centers 3

49. Small Steel Grab Handle Installed At Rear 2

50. Additional Body Option
PVC storage located on SS Wall
-Two (2) 48" L 2.5" diameter. PVC pipes to be slightly slanted. 1 Body and Chassis Accessories

51. Set of Safety Chain D-Rings 1
Packet Pg. 151 Attachment: PUR000043 - PO 115083 01-18-23 - Q1038049 - E442 Non-Crane - Lead Time 16-20mo (4.5(a)--First Amendment - Increased Quote Number: 1038049 - 1
Altec, Inc.

We Wish To Thank You For Giving Us The Pleasure
And Opportunity of Serving You
UTILITY EQUIPMENT AND BODIES SINCE 1929

Item Description Qty Price

52. Receiver Hitch, 2.5, Class 5, Incorporated Into Frame Extension 1

53. Mud Flaps without Altec Logo (Pair) 1

54. Fold Over, Post Style Cone Holder (Holds up to four 15 x15 large cones) Mounted on SS rear bumper.
-See photos in TC.
1 55. Water Cask, 5 Gallon (Plastic) 1

56. Water Cask Bracket for 3 Or 5 Gallon Water Casks (Wire Type) (Altec/Stock Preferred) Mounted on CS rear tailshelf
1 57. Air Compressor Option 1
VMAC VR70 Belt Driven Air Compressor
-Up to 70 CFM* @ 100 psi (175 psi max).
-Belt-driven, 100% duty cycle, VMAC oil-injected rotary screw. -10 Gallon Air Receiver Tank
-Ensure nothing installed hangs lower than OEM Ford Components under the hood -See compressor and installation quote in TC
-Look into Foothills Ford Pilot Mountain for install
1 58. Air Hose Reel for 75 Ft of 3/4 Air Hose 250 PSI (ReelCraft) Reelcraft D83075 OLP - 3/4" x 75ft
-Reel mounted CS front bulkhead
-Hose to payout at rear near tailshelf
-Provide guard to protect hose
-Include extra fairlead at rear
1 59. 5 LB Fire Extinguisher with Light Duty Bracket Shipped Loose (Amerex #B402T) 1

60. Triangular Reflector Kit (Contains 3 Reflectors), Shipped Per DEPS 042 1

61. Spare Chassis Key, 3-Button Key with Key FOB (Ford) 3

62. Vinyl Manual Pouch for Storage of All Operator and Parts Manuals 1

63. Additional Body/Chassis Accessory
Receiver Hitch Gripstrut Step
-To work in conjunction with 2.5" receiver hitch.
1 64. Additional Body/Chassis Accessory
Once truck completes, send to Valley Spring Works in Dixon CA (707) 678-3944 for the following:
-Reroute exhaust to SS
1 Electrical Accessories

65. Lights And Reflectors In Accordance With FMVSS 108 (Complete LED) 1 Packet Pg. 152 Attachment: PUR000043 - PO 115083 01-18-23 - Q1038049 - E442 Non-Crane - Lead Time 16-20mo (4.5(a)--First Amendment - Increased Quote Number: 1038049 - 1
Altec, Inc.

We Wish To Thank You For Giving Us The Pleasure
And Opportunity of Serving You
UTILITY EQUIPMENT AND BODIES SINCE 1929

Item Description Qty Price

66. 6-Position Strobes, Amber, LED, Two (2) Oval Lights In Grille, Two (2) Oval Lights On Body Sides, Two (2) Round Lights At Rear, Class II (Permit May Be Required) 1 67. Remote Spot Light, LED, Permanent Mount, With Wireless Dash Mounted Controls And Programmable Wireless Remote (Go-Light #20074)
One (1) each side at rear above canopy doors.
-Dash mounted switch in rear of driver.
-With toggle control in cab and remotes.
2 68. Single Tone Backup Alarm, Installed between the chassis frame rails at the rear of the chassis. To work in conjunction with chassis reverse drive system. 1 69. Ultrasonic Detection System, Rear Detection, Brigade Backscan BS-4000W, 3744 1

70. Trailer Receptacle, 7-Way (Blade Type) Installed At Rear 1

71. Upfitter Switches, Ford (Supplied With Chassis) 1

72. Inverter, 1800 Watt, Pure Sine Wave, 120 VAC (Sensata #12/1800N) Located in SS 1st Vertical
1 73. Inverter Wired Battery Hot To Switch Mounted In Chassis Cab 1

74. Electrical Receptacle, 120 Volt, GFCI, Includes Weather-Resistant Enclosure One (1) in each horizontal compartment
-One (1) on each interior cargo wall, down low so it can be reached from outside of the truck.
4 75. Electrical Cord Reel, Retractable, Includes 50 Ft Of 12-3 Cord, Ball Stop, And Receptacle
Electric cord reel to be installed underslung and payout to the rear. 1 76. Install Chassis (OEM) Supplied Backup Camera In Final Assembly Installed over center of hitch
-Used to help hook up trailer.
1 Finishing Details

77. Front and Rear Frame Mounted and Under Body Mounted Components (With the Exception of Rust Resistant Components) Will Be Painted Black DEPS 005 DEPS 095 (Includes Non OEM Front Bumpers and Cabguards)
1 78. Finish Paint Body Accessories Above Body Floor Altec White 1

79. Apply Non-Skid Coating (Black) to All Walking Surfaces DEPS 057 1

80. Safety and Instructional Decals English 1

81. Vehicle Height Placard Installed In Cab DEPS 002 1

82. Focus Factory Build 1
Packet Pg. 153 Attachment: PUR000043 - PO 115083 01-18-23 - Q1038049 - E442 Non-Crane - Lead Time 16-20mo (4.5(a)--First Amendment - Increased Quote Number: 1038049 - 1
Altec, Inc.

We Wish To Thank You For Giving Us The Pleasure
And Opportunity of Serving You
UTILITY EQUIPMENT AND BODIES SINCE 1929

Item Description Qty Price

83. Inbound Freight 1

84. As Built Electrical and Hydraulic Schematics to be Included In the Manual Pouch (Deps 024)
1 85. Completed Test Forms To Be Included In The Manual Pouch:
-Stability Test Form
-Dielectric Test Form (For Insulated Units)
1 86. EBS-132D-S 1
Chassis

87. Altec Supplied Chassis 1

88. Chassis 1

89. 2023 Model Year 1

90. Ford F550 1

91. Dual Rear Wheel 1

92. 4x2 1

93. Chassis Cab 1

94. Regular Cab 1

95. Chassis Color - White 1

96. AM/FM Radio 1

97. Bluetooth 1

98. Ford SYNC
With Apple Car Play
1 99. Block Heater 1
100. Running Boards (Supplied By Chassis OEM) 1
101. Side Mirrors, Power Adjusting, Manual Folding, Manual Telescoping with Heated Glass 1 102. Snow Plow Package 1
103. Towing Package 1
104. Trailer Brake Controller (Factory Installed) 1
105. Air Conditioning 1
106. Backup Camera, OEM Supplied 1
Packet Pg. 154 Attachment: PUR000043 - PO 115083 01-18-23 - Q1038049 - E442 Non-Crane - Lead Time 16-20mo (4.5(a)--First Amendment - Increased Quote Number: 1038049 - 1
Altec, Inc.

We Wish To Thank You For Giving Us The Pleasure
And Opportunity of Serving You
UTILITY EQUIPMENT AND BODIES SINCE 1929

Item Description Qty Price
Chassis to have 7" monitor.
107. Cruise Control 1
108. Keyless Entry 1
109. Power Door Locks 1
110. Power Windows 1
111. 84 Clear CA (Round To Next Whole Number) 1
112. GVWR 19,500 LBS 1
113. Other Front GAWR
7,000 lbs
1 114. Other Rear GAWR
14,706 lbs
1 115. Spring Suspension 1
116. Ford 6.7L Power Stroke Diesel 1
117. Diesel 1
118. Ford Torqshift 10-Speed Automatic Transmission (w/PTO Provision) 1 119. Ford 40 Gallon Fuel Tank (Rear) 1
120. Ford 7.2 Gallon DEF Tank (Mid Mount) 1
121. Ford E/F250-550 Single Horizontal Right Side Exhaust 1 122. Clean Idle Certification 1
123. CARB Compliant 1
124. No Idle Engine Shut-Down Required 1
125. Hydraulic Brakes 1
126. Park Brake In Rear Wheels 1
127. 18A - Upfitter Interface Module 1
128. 872 - Rear View Camera and Prep Kit 1
129. 98R - Operator Commanded Regeneration (OCR) 1
130. Other Chassis Code
90L Power Package
1 131. XLT Trim Package 1
Packet Pg. 155 Attachment: PUR000043 - PO 115083 01-18-23 - Q1038049 - E442 Non-Crane - Lead Time 16-20mo (4.5(a)--First Amendment - Increased Quote Number: 1038049 - 1
Altec, Inc.

We Wish To Thank You For Giving Us The Pleasure
And Opportunity of Serving You
UTILITY EQUIPMENT AND BODIES SINCE 1929

Item Description Qty Price
132. Cloth Split Bench Seat
40/20/40
1 133. Additional Chassis Option
Vinyl/Rubber Flooring
1 134. Additional Chassis Option
Backup sensor
1 135. Additional Chassis Option
Ignition Turnkey
-Do NOT equip push to start.
1 Additional Pricing
136. Standard Altec Warranty: One (1) year parts warranty, one (1) year labor warranty, ninety (90) days warranty for travel charges, limited lifetime structural warranty 1 137. Administration Fees 1
138. Documentation Fees 1
139. State Tire Tax 1
144,202.00
130.50
10,454.65
154,787.15
Unit / Body / Chassis Total
Doc Admin Tire Fees
Est. Taxes (7.25%)
Total
Altec Industries, Inc.

BY
Corbin Reavis
Notes:
1 Altec will make every effort to honor this quotation, subject to the following provisions. Prices for equipment with production start dates 12 months and beyond are budgetary only due to irregular cost inflation and market volatility. These prices will be reviewed based on market conditions and confirmed closer to the production date.

For a quoted chassis model year beyond the current open order bank, chassis model year, specifications and price should be considered estimates only and subject to change. Chassis model year, specifications and price will be reviewed and confirmed when specific model year information becomes available from the OEM.

Packet Pg. 156 Attachment: PUR000043 - PO 115083 01-18-23 - Q1038049 - E442 Non-Crane - Lead Time 16-20mo (4.5(a)--First Amendment - Increased Quote Number: 1038049 - 1
Altec, Inc.

We Wish To Thank You For Giving Us The Pleasure
And Opportunity of Serving You
UTILITY EQUIPMENT AND BODIES SINCE 1929

2 Altec takes pride in offering solutions that provide a safer work environment for our customers. In an effort to focus on safety, we would encourage you to consider the following items:

Outrigger pads (When Applicable)
Fall Protection System
Fire extinguisher/DOT kit
Platform Liner (When Applicable)
Altec Sentry Training
Wheel Chocks
The aforementioned equipment can be offered in our new equipment quotations. If you find that any of these items have not been listed as priced options with an item number in the body of your quotation and are required by your company, we would encourage you to contact your Altec Account Manager and have an updated quote version sent to you. These options must be listed with an item number in the quotation for them to be supplied by Altec.
3 Chassis pricing should be considered budgetary only and is subject to change when specific model year pricing becomes available from the OEM. Additionally, the chassis model year is subject to change based on availability at time of order.
4 The final fully loaded weight of the truck and structural ratings of the hitch assembly may reduce the towing capacity and the vertical load capacity of the finished truck. These capacities may not match the ratings of the chassis or hitch.
5 Altec Extended Warranty Option:

An Altec Extended Warranty is an extension of Altec's Limited Warranty and protects you from the repair cost associated with defects of materials and workmanship after the standard Limited Warranty expires.

Altec offers many types of coverages and coverage packages. Ask your Altec account manager for details.

Quotes are available upon request.
6 Unless otherwise noted, all measurements used in this quote are based on a 40 inch (1016mm) chassis frame height and standard cab height for standard configurations. 7 Altec Standard Warranty:

One (1) year parts warranty.

One (1) year labor warranty.

Ninety (90) days warranty for travel charges.

Warranty on structural integrity of the following major components is to be warranted for so long as the initial purchaser owns the product: Booms, boom articulation links, hydraulic cylinder structures, outrigger weldments, pedestals, subbases and turntables.

Altec is to supply a self-directed, computer based training (CBT) program. This program will provide basic instruction in the safe operation of this aerial device. This program will also include and explain ANSI and OSHA requirements related to the proper use and operation of this unit.

Altec offers its standard limited warranty with the Altec supplied components which make up the Altec Unit and its installation, but expressly disclaims any and all warranties, liabilities, and responsibilities, including any implied warranties of fitness for a particular purpose and merchantability, for any customer supplied parts
Packet Pg. 157 Attachment: PUR000043 - PO 115083 01-18-23 - Q1038049 - E442 Non-Crane - Lead Time 16-20mo (4.5(a)--First Amendment - Increased Quote Number: 1038049 - 1
Altec, Inc.

We Wish To Thank You For Giving Us The Pleasure
And Opportunity of Serving You
UTILITY EQUIPMENT AND BODIES SINCE 1929

Altec designs and manufactures to applicable Federal Motor Vehicle Safety and DOT standards 8 Price does not reflect any local, state or Federal Excise Taxes (F.E.T). The quote also does not reflect any local title or licensing fees. All appropriate taxes will be added to the final price in accordance with regulations in effect at time of invoicing.
9 F.O.B. - Customer Site
10 Altec values your data privacy. The Altec Family of Companies (including Altec, Inc., and it's subsidiaries) may collect telematics data from the equipment you own. Please review Altec's Equipment Data Privacy Notice on www.altec.com for more information. By purchasing equipment from Altec, you consent to Altec's right to collect and use such data.
11 Changes made to this order may affect whether or not this vehicle is subject to F.E.T. A review will be made at the time of invoicing and any applicable F.E.T. will be added to the invoice amount. 12 Interest charge of 1/2% per month to be added for late payment. 13 Trade-in offer is conditional upon equipment being maintained to DOT (Department of Transportation) operating and safety standards and remaining in compliance of DOT until arrival at an Altec Facility. This will include, but is not limited to engine, tires, lights, brakes, glass, etc. All equipment, i.e., jibs, winches, pintle hooks, trailer connectors, etc., are to remain with unit unless otherwise agreed upon in writing by both parties. ALTEC Industries reserves the right to re-negotiate its trade-in offer if these conditions are not met.

All reasonable and necessary expenses required of ALTEC Industries to execute transportation of the trade-in will be invoiced to the customer for payment if these conditions are not met to maintain DOT standards.
14 15
Estimated Delivery is based on information at time of quote and is subject to change. 16 17
18 19
Altec reserves the right to change suppliers in order to meet customer delivery requirements, unless specifically identified, by the customer, during the quote and or ordering process.

After the initial warranty period, Altec Industries, Inc. offers mobile service units, in-shop service and same day parts shipments on most parts from service locations nationwide at an additional competitive labor and parts rate. Call 877-GO-ALTEC for all of your Parts and Service needs.

This quotation is valid until FEB 4, 2023. After this date, please contact Altec Industries, Inc. for a possible extension.

FINANCING AVAILABLE: Please contact Altec Capital at (888) 408-8148 or email [email protected] for more information.

Please direct all questions to Rhawnie Kraak at (707) 689­6262 Customer may exercise the option to rescind this agreement in writing within sixty (60) days after receipt of purchase order. After that time ALTEC Industries will expect receipt of trade-in vehicle upon delivery of new equipment as part of the terms of the purchase order unless other arrangements have been made.

Any payment made by a credit card may be subject to a surcharge fee.

Estimated Delivery: 28­31 months after receipt of order PROVIDING:

A. Customer supplied chassis is received a minimum of sixty (60) days before scheduled delivery.

B. Customer approval drawings are returned by requested date.

C. Customer supplied accessories are received by date necessary for compliance with scheduled delivery.

D. Customer expectations are accurately captured prior to major components being ordered (body, chassis) and line set date. Unexpected additions or changes made after this time or at a customer inspection will delay the delivery of the vehicle.

Packet Pg. 158 Attachment: PUR000043 - PO 115083 01-18-23 - Q1038049 - E442 Non-Crane - Lead Time 16-20mo (4.5(a)--First Amendment - Increased Quote Number: 1038049 - 1
Altec, Inc.

We Wish To Thank You For Giving Us The Pleasure
And Opportunity of Serving You
UTILITY EQUIPMENT AND BODIES SINCE 1929

Packet Pg. 159 Attachment: PUR000043 - PO 115083 01-18-23 - Q1038049 - E442 Non-Crane - Lead Time 16-20mo (4.5(a)--First Amendment - Increased

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the City Manager, or designee, to execute Contract No. 23-SNR-02969 “Interconnected Operations Agreement” between the City of Redding and the United States Department of Energy Western Area Power Administration (WAPA) Sierra Nevada Region for delivery of Redding’s WAPA Base Resource energy allocation from the Keswick and Airport substations.

Fiscal Impact
Under the current contract for Interconnection Operations, Contract No. 04-SNR-00847, City of Redding Electric Utility (REU) paid approximately $1.1M in fiscal year 2023. The Fiscal Year 2023-25 approved Biennial Budget reflects the costs that will occur for the balance of the current contract through December 31, 2024, and for any new contract that will be in place for these services.

Alternative Action
The City Council (Council) could choose not to approve Contract No. 23-SNR-02969, “Interconnected Operations Agreement,” between Western Area Power Administration (WAPA) and the City of Redding (City). If the Council chooses to decline, the City would not retain the ability to operate its power system within WAPA’s Sub-Balancing Authority Area and would be required to seek out other options to meet its Balancing Area obligations. The process of seeking out an alternative option to the interconnection with WAPA would require the City to transition into another Balancing Authority Area or form its own Balancing Authority, involving a substantial investment of time from personnel and may entail significant expenses to execute.

Additionally, sustained operational expenditures are anticipated to surpass those linked to the WAPA interconnection if an alternative option is secured.

MEETING DATE: March 19, 2024
ITEM NO. 4.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(b)--Approve Contract No. 23-SNR-02969 for Electric Interconnected Operations
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 160
Report to Redding City Council March 14, 2024
Re: 4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Interconnected Operations Page 2 Background/Analysis
WAPA is a power marketing administration of the Department of Energy that has established a contract-based Sub-Balancing Authority Area within the Balancing Authority of Northern California (BANC). The Western interconnect for electricity facilitates the transfer of power between various balancing areas to ensure reliability and stability in the electric grid. WAPA’s interconnect to the larger BANC Balancing Area allows electricity exchange between these two regions. The interconnection between BANC and the WAPA Sub-Balancing Area enables the transfer of power between these regions based on supply-demand dynamics, market conditions, and operational needs. This exchange of electricity helps optimize resource utilization, support reliability, and facilitate economic benefits for both balancing areas.

Redding’s electric system is operated with physical ties to the WAPA Sub-Balancing Authority Area at the Keswick and Airport substations under current Contract No. 04-SNR-00847, which reaches the end of the contract term on December 31, 2024. These physical connections to the WAPA Sub-Balancing Authority Area allow for the delivery of Redding’s WAPA Base Resource energy allocation, delivery of external power purchase contracts, and facilitate access to the wholesale energy market within the BANC and wider Western Electricity Coordinating Council regions including the City’s access to its share of transmission rights held on the California Oregon Transmission Project.

Contract No. 23-SNR-02969, with an effective date of January 1, 2025, was developed to replace the expiring Contract No. 04-SNR-00847. This new Contract No. 23-SNR-02969 between WAPA and the City will allow both parties to continue their current contractual relationship through December 31, 2034, establishes the operational rights and obligations of both WAPA and the City, identifies the services that are to be provided under the contract, and facilitates compensation for those services that are provided for under this contract.

Lastly, a departmental review of the new contract found no material differences between the two contracts.

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

Council Priorities/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
Western Contract 23-SNR-02969 Interconnected Operations Agreement Packet Pg. 161
Contract 23-SNR-02969

UNITED STATES

DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

SIERRA NEVADA REGION

INTERCONNECTED OPERATIONS AGREEMENT
WITH

CITY OF REDDING
Packet Pg. 162 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
Contract 23-SNR-02969 i

UNITED STATES

DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

SIERRA NEVADA REGION

INTERCONNECTED OPERATIONS AGREEMENT
WITH

CITY OF REDDING
Section Table of Contents Page

1. Preamble................................................................................................................. 1

2. Explanatory Recitals ............................................................................................... 1

3. Agreement............................................................................................................... 3

4. Effective Date, Term, And Termination ................................................................... 3

5. Definitions ............................................................................................................... 4

6. Sub-Balancing Authority Standard ........................................................................ 13

7. Interconnection...................................................................................................... 13

8. Significant Regulatory or Operational Change ...................................................... 13

9. Planning Standard................................................................................................. 16

10. Operations............................................................................................................. 16

11. Metering ................................................................................................................ 29

12. Billing And Payment .............................................................................................. 32

13. Severability............................................................................................................ 35

14. Modification of This Contract................................................................................. 35

15. Exhibits.................................................................................................................. 35

16. Records And Audits .............................................................................................. 36

17. Relationship of the Parties .................................................................................... 36

18. Non-Dedication of Facilities................................................................................... 36

19. Governing Law ...................................................................................................... 37

20. Default................................................................................................................... 37

21. Notices .................................................................................................................. 37

22. Dispute Resolution ................................................................................................ 37

23. General Power Contract Provisions ...................................................................... 39

24. Authority To Execute............................................................................................. 39

25. Execution by Counterparts.................................................................................... 39

26. Electronic Signatures ............................................................................................ 39 Packet Pg. 163 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
Contract 23-SNR-02969 ii
Signature Clause
Exhibit A – City of Redding Net Interchange Determination Exhibit B – Scheduling Procedures
Exhibit C – Reserve Obligations
Exhibit D – Maximum Deviation Band Calculation
Exhibit E – Notices
General Power Contract Provisions
Schedule of Rate for Regulation and Frequency Response Service, CV-RFS4 Schedule of Rate for Energy Imbalance Service, CV-EID5
Schedule of Rate for Generator Imbalance Service, CV-GID2 Schedule of Rate for Energy Imbalance Market Energy Imbalance Service, CV-EIM4S Schedule of Rate for Energy Imbalance Market Generator Imbalance Service, CVEIM9S Packet Pg. 164 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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UNITED STATES

DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

SIERRA NEVADA REGION

INTERCONNECTED OPERATIONS AGREEMENT
WITH

CITY OF REDDING

1. PREAMBLE:

This Contract, made this pursuant to the Acts of Congress approved June 17, 1902 (32 Stat. 388); August 4, 1977 (91 Stat. 565); and Acts amendatory or supplementary to the foregoing Acts; between the UNITED STATES OF AMERICA, acting by and through the Administrator, Western Area Power Administration, Department of Energy, hereinafter called WAPA, represented by the officer executing this Contract or a duly appointed successor, hereinafter called the Contracting Officer, and City of Redding, a general law city, organized and existing under the laws of the State of California, hereinafter called Redding, its successors and assigns; each sometimes individually called Party, and all sometimes collectively called Parties.

2. EXPLANATORY RECITALS:

2.1. WAPA is a power marketing administration of the Department of Energy that has established a contract based Sub-Balancing Authority Area within the Balancing Authority of Northern California (BANC).

2.2. Redding operates an Electric Power System in northern California.

Packet Pg. 165 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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2.3. Redding operates an Electric Power System with physical ties to WAPA’s Sub-Balancing Authority Area, schedules deliveries of power from WAPA, and imports to and exports from WAPA’s Sub-Balancing Authority Area.

2.4. As a result of Redding's Electric Power System being located within WAPA's Sub-Balancing Authority Area, WAPA may, by default or otherwise, perform certain services for Redding.

2.5. On April 3, 2019, BANC, as the Energy Imbalance Market (EIM) Entity, and Sacramento Municipal Utility District (SMUD), as an EIM Participating Resource, commenced operating in the California Independent System Operator’s (CAISO) EIM; and on March 25, 2021, the Modesto Irrigation District (MID), the City of Redding (Redding), and the City of Roseville (Roseville), along with WAPA began to participate in EIM.

2.6. MID, Redding, Roseville and City of Shasta Lake are herein after collectively called the “IOA Customers”.

2.7. The Parties are currently operating under the terms and conditions of Contract 04-SNR-00847, which terminates on December 31, 2024.

2.8. The Parties wish to continue their contractual relationship and provide the vehicle to establish the operational rights and obligations of the Parties, identify the services provided, and provide for compensation for the services rendered under the terms and conditions contained in this Contract.

2.9. Redding has executed a Transmission Service Agreement and/or a Contract for Interconnection.

Packet Pg. 166 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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3. AGREEMENT:

The Parties agree to the terms and conditions set forth herein.

4. EFFECTIVE DATE, TERM, AND TERMINATION:

This Contract shall be effective January 1, 2025, and, subject to prior termination pursuant to Sections 4.1 through and including 4.4 hereof, shall remain in effect through December 31, 2034.

4.1. Redding may terminate this Contract upon one (1) year advance written notice given to WAPA. Such notice shall include the identity of the Balancing Authority Area into which Redding will move or a statement that Redding will become a Western Electricity Coordinating Council (WECC) recognized Balancing Authority, the proposed actions that are necessary to accomplish the movement or to become a Balancing Authority, and the proposed timetable for such actions. If Redding’s proposed actions require WAPA to reprogram its internal systems, Redding would be responsible for WAPA’s costs to perform these actions.

4.2. WAPA may terminate this Contract upon one (1) year advance written notice given to Redding if WAPA determines that it cannot reasonably continue to provide the services covered by this Contract.

4.3. Either Party may terminate this Contract if the other Party defaults pursuant to Section 20.

4.4. In the event of termination, Redding, at its own expense, shall make arrangements for and move into another Balancing Authority Area or form its own Balancing Authority.
///
Packet Pg. 167 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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If Redding fails to make such arrangements, WAPA, at its election, may require Redding to take service under the terms and conditions of the applicable tariffs developed by WAPA through a public process.

5. DEFINITIONS:

The following terms, whether in the singular or the plural, when initially capitalized and used in this Contract shall have the meanings specified:

5.1. “Adverse Impact” means an impact on a Party’s Electric Power System resulting from a Modification or new facility addition to the other Party’s Electric Power System that: (1) materially degrades reliability of a Party’s Electric Power System; or (2) materially reduces the Party’s ability to conduct power transfers into or out of its Electric Power System.

5.2. “Automatic Generation Control” means equipment which automatically adjusts generation from a central location to maintain an entity’s system interchange schedule, plus frequency bias obligation, if any.

5.3. “Balancing Authority (BA)” means the responsible entity that integrates resource plans ahead of time, maintains demand and resource balance within a Balancing Authority Area, and supports the frequency of the interconnection in real time.

5.4. “Balancing Authority Area” means the collection of generation, transmission, and loads within the metered boundaries of the Balancing Authority.

5.5. “Balancing Authority Operator” means the entity responsible for operating a Balancing Authority that performs all duties for such an entity as specified by Packet Pg. 168 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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applicable North American Electric Reliability Corporation (NERC) and Western Electricity Coordinating Council (WECC) documents.

5.6. “Business Day” means any day other than Saturday, Sunday, or a legal public holiday as designated in Section 6103 of Title 5, U.S. Code or by Executive Order or federal statute or any WECC designated holidays.

5.7. “Contract” means this Contract for interconnected operations between WAPA and Redding.

5.8. “Contract for Interconnection” means Contract 23-SNR-02969 or its successor, between WAPA and Redding for interconnection of the Parties’ Electric Power Systems.

5.9. “Dispatch Instruction” means an instruction by the Market Operator (MO) for an action with respect to a specific resource participating in EIM for increasing or decreasing its energy supply or demand.

5.10. “Dispatch Operating Target (DOT)” means the expected operating point, in megawatts (MW), of a resource participating in EIM that has received a Dispatch Instruction from the MO. The Dispatch Operating Target means the MW output of a resource participating in EIM due to an EIM bid being accepted and the participating resource receiving a Dispatch Instruction.

5.11. “Electric Power System” means all properties and assets that are owned by either Party, including any interests in jointly-owned facilities, such as the California-Oregon Transmission Project, and that are used for or pertain to the generation, transmission, transformation, control, or distribution of electric power, Packet Pg. 169 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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including all additions, replacements, extensions, expansions, improvements, and betterments thereto, and equipment associated therewith. Communication systems and equipment associated with the operation of the Electric Power System shall be included as part of the Electric Power System. To the extent that either Party is not the sole owner of an asset or property, only that Party’s ownership or entitlement interest in such asset or property shall be considered part of its Electric Power System.

5.12. “Emergency” means any abnormal system condition that requires automatic or immediate manual action to prevent or limit the failure of transmission facilities or generation supply that could adversely affect the reliability of the Bulk Electric System. Insufficient prime mover energy, fossil fuel, or other shortages of prime-mover energy shall not be considered an Emergency unless such insufficiency or shortage is the result of an Uncontrollable Force.

Drought shall not be considered an Emergency. In addition, losses or interruptions resulting from the following events shall not be considered an Emergency: (1) Dispatchable or non-dispatchable generating resources having recurring or chronic operational, maintenance, or contractual problems, (2) failures of dispatchable generating resources to start up on demand, (3) failures of non-dispatchable generating resources to produce power to meet their scheduled output, (4) pre-scheduled curtailments or pre-scheduled interruptions of power or transmission service, (5) curtailments or interruptions of power or transmission service that occur with advance notice of at least one hour, or (6) curtailments or interruptions of power or transmission service that occur without notice where such curtailment or interruption can reasonably be expected and should be planned for consistent with Good Utility Practice. In determining whether a Party has suffered a bona-fide Emergency, especially regarding whether a particular curtailment or interruption of service could Packet Pg. 170 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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reasonably have been anticipated by that Party, the other Party shall give due consideration to the standards applicable to planning for contingencies in keeping with Good Utility Practice and the standard set forth in Section 9 hereof.

5.13. “Energy Imbalance Market (EIM) Entity” means a Balancing Authority that enters into the MO’s EIM Entity Agreement to enable the EIM to occur in its Balancing Authority Area. BANC is the EIM Entity for the BANC EIM Entity Balancing Authority Area. For the purpose of this IOA, the EIM Entity is the BANC EIM Entity or the entity selected by the BANC EIM Entity who is certified by the MO. WAPA and Redding participate in the CAISO EIM under the BANC EIM Entity.

5.14. “FERC” means the Federal Energy Regulatory Commission or its successor.

5.15. “Forced Outage” means any full or partial unplanned outage of a Party's generating resources and/or transmission/sub-transmission facilities.

5.16. “Good Utility Practice” means any of the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. ///
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5.17. “Interconnection Facilities” means each Point of Interconnection and the facilities and equipment supporting it as determined consistent with Good Utility Practice (e.g., circuit breakers, protective devices, relays, and metering).

5.18. “Interruptible Energy” means Energy which is subject to curtailment for any reason with or without advance notification by the supplier/receiver.

5.19. “Locational Marginal Pricing (LMP)” means the CAISO calculated marginal cost ($/MWh) of serving the next increment of demand at that Pricing Node consistent with existing transmission constraints and the performance characteristics of resources.

5.20. “Market Operator (MO)” means the entity responsible for operation, administration, settlement, and oversight of the EIM. The CAISO is the current MO of EIM.

5.21. “Maximum Deviation Band” means the maximum megawatt, averaged over each five (5) minute interval, deviation of metered energy relative to EIM DOTs allowed, both positive (over generation) and negative (under generation), within which deviations are accounted for, as specified in Section 10.6.4 hereof.

5.22. “Most Severe Single Contingency (MSSC)” means the generating capacity equal to the greater of: (1) the largest, single on-line generating resource; (2) the sum of a utility’s on-line generating resources or purchases of firm power served by a single transmission circuit; or (3) the loss of a credible single or multiple system element(s) consistent with WECC practices.
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5.23. “NERC” means the North American Electric Reliability Council or successor agency.

5.24. “Points of Interconnection (POI)” means those places on the transmission system where facilities are established to connect the Electric Power System of WAPA with the Electric Power System of Redding and the Electric Power Systems of Third Parties to the Electric Power System of Redding. The Points of Interconnection are made up of Points of Receipt (POR) and Points of Delivery (POD) as typically recognized by NERC in the Transmission System Information Networks (TSIN) Registry.

5.25. “Pricing Node (PNode)” means a single network node or subset of network nodes where a physical injection or withdrawal is modeled by the CAISO and for which the CAISO calculates an LMP that is used for financial settlements by the CAISO and the EIM Entity.

5.26. “Redding Electric Dispatch Center” means Redding’s primary dispatch center. If this facility is not manned 24 hours per day, Redding will be responsible for designating the after-hour’s point-of-contact.

5.27. “Redding Net Interchange” means the calculations as set forth in Exhibit A.

5.28. “Redding System Load” means the summation of all Redding’s net internal metered generation minus the total net power flows at all Points of Interconnection where power flow into Redding’s Electric Power System are a negative value and power flow out of Redding’s Electric Power System are a ///
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positive value. Net power flows will include dynamic schedules and pseudo ties.

5.29 “Reserves”

5.29.1 “California-Oregon Intertie (COI) Mitigation Reserves” means generation (synchronized or capable of being synchronized to the system) that is fully available to serve load within the disturbance recovery period following the contingency event.

5.29.2 “Contingency Reserves” means the provision of capacity that may be deployed by the Balancing Authority to respond to a Balancing Contingency Event and other contingency requirements (such as Energy Emergency Alerts as specified in the associated EOP standard). A Balancing Authority may include in its restoration of Contingency Reserve readiness to reduce Firm Demand and include it if, and only if, the Balancing Authority:

5.29.2.1 Is experiencing a Reliability Coordinator declared Energy Emergency Alert level and is utilizing its Contingency Reserve to mitigate an operating emergency in accordance with its emergency Operating Plan.

5.29.2.2 Is utilizing its Contingency Reserve to mitigate an operating emergency in accordance with its emergency Operating Plan.

5.29.3 “Frequency Response Reserves” means Spinning Reserve that responds automatically to frequency deviations, due to the unit’s governor, within thirty (30) seconds of the event and sustains response for at least one (1) minute.

5.29.4 “Spinning Reserve” means unloaded generation which is synchronized to the system and ready to serve additional demand.

Frequency Response Reserves fall under this category.

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5.30 “Scheduled Maintenance” means an outage for overhaul, repair, or maintenance of a Party’s generating units or Transmission Facilities or SubTransmission Facilities that are coordinated and scheduled in advance.

5.31 “Significant Operational Change” means any operational change proposed by a Party that could reasonably be expected to significantly affect the other Party’s Electric Power System or Balancing Authority. Actions taken by the Balancing Authority operator which may cause a significant change in the way a Party operates or must operate its Electric Power System or Balancing Authority or the Points of Interconnection between the Parties. Significant Operational Changes include but are not limited to the following:

5.31.1 The connections of a generator or group of generators with capacity of greater than 25 MW on Redding’s Electric System;

5.31.2 Load connections greater than 25 MW on Redding’s Electric System;

5.31.3 Transmission line construction, re-enforcements, upgrades, downgrades at voltages greater than 70 kV on Redding’s Electric System; or

5.31.4 Modifications to WAPA’s Electric System that would limit or prevent WAPA from providing service to Redding under the terms of this agreement.

5.32 “Significant Regulatory Change” means any course of action ordered by Congress, the President of the United States, or by a Federal Executive Branch Agency, including the Department of Energy, directive or State of California directive that significantly affects the ability of either Party to fulfill its obligations under this Contract.
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5.33 “Sub-Balancing Authority” means an Electric Power System operating within a host Balancing Authority that is bounded by meters and is responsible for Balancing Authority-like performance of generation, load, and transmission.

5.34 “Sub-Transmission Facility” means an interconnected group of lines and associated equipment for the movement or transfer of electric energy between points of supply and points at which it is transformed for delivery to customers or is delivered to other electric systems at voltages generally between 33 kV and up to 100 kV.

5.35 “System Operations Center (SOC)” means WAPA’s dispatch center located in Folsom, California. May also be referred to as Folsom Dispatch Office (FDO).

5.36 “Third Party” means a person or entity other than WAPA or Redding.

5.37 “Transmission Facility” means an interconnected group of lines and associated equipment for the movement or transfer of electric energy between points of supply and points at which it is transformed for delivery to customers or is delivered to other electric systems at voltages generally above 100-kV.

5.38 “Uncontrollable Force” means any cause beyond the control of the Party affected including, but not restricted to, failure of or threat of failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, pandemic, war, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, restraint by court order or public authority and action or non-action by, or failure to obtain the necessary authorizations or approvals from, any government agency or authority, which by exercise of due diligence such Party could not reasonably Packet Pg. 176 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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have been expected to avoid and which by exercise of due diligence it shall be unable to overcome.

5.39 “Uninstructed Imbalance Energy (UIE)” means settlement charges incurred by Redding due to uninstructed deviations of supply or demand as settled by the EIM Entity or MO.

5.40 “WECC” means the Western Electricity Coordinating Council or its successor agency.

6. SUB-BALANCING AUTHORITY STANDARD:

If the Balancing Authority Operator implements FERC, NERC or WECC standards and/or requirements in a manner that results in charges paid by WAPA, the Parties shall meet and confer on any allocation of increased responsibilities and/or costs to Redding.

WAPA will charge Redding its share of additional charges, as determined by WAPA in a public process, and Redding shall pay such charges, to the extent such charges are not covered in an existing rate schedule.

7. INTERCONNECTION:

The Electric Power Systems of the Parties shall be interconnected at the Points of Interconnection as provided for in the Contract for Interconnection.

8. SIGNIFICANT REGULATORY OR OPERATIONAL CHANGE:

8.1. Notice: If, at any time during the term of this Contract, either Party becomes aware of a Significant Regulatory Change or Significant Operational Change that impacts a provision of this Contract, such Party shall provide notice to the other Party no later than one month after becoming aware of such Significant Regulatory Change or Significant Operational Change. The notice Packet Pg. 177 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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shall contain a description of the Significant Regulatory Change or Significant Operational Change, including expected time schedules and studies, in accordance with Section 8 hereof. If the Party giving notice believes that it will be necessary to amend this Contract to address the anticipated change, then the notice to the other Party may include a proposal that the Parties meet in order to negotiate an appropriate amendment to this Contract.

8.2. Significant Operational Change:

8.2.1. Studies of Significant Operational Change: If, in accordance with Section 8.1, a Party receiving notice from the other Party of a Significant Operational Change believes that the proposed change may reasonably be expected to affect the operation of its Electric Power System materially, it may request a study of any such Significant Operational Change to determine the potential for any Adverse Impact and any potential avoidance or mitigation measures thereto. The Parties shall cooperate in providing information necessary to conduct such study. If WAPA determines that, in addition, a system planning study is required, WAPA shall perform such study within 120 days of notice of the Significant Operational Change. The study costs shall be the responsibility of the Party whose proposal will cause the Significant Operational Change, or will be shared by the Parties if; (1) the Balancing Authority Operator is an entity other than WAPA and is the one who causes or will cause the Significant Operational Change; or (2) the Significant Operational Change is a proposal of a Third Party; provided, that such costs may be paid by a responsible Third Party. The study shall identify options for mitigation measures, if any. Upon completion of the necessary studies, the Parties will each review the study results and discuss any recommendations for avoidance and/or mitigation of Adverse Impacts.

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8.2.2. Mitigation and Costs: Unless otherwise agreed by the Parties, the Party whose proposal or action causes the Significant Operational Change (modifying Party) shall be responsible for compensating the other Party (affected Party) for the reasonable cost, if any, of mitigating any Adverse Impact on the affected Party’s Electric Power System caused by the change; provided, that such costs may alternatively be paid by a responsible Third Party. Any reasonable cost incurred by the affected Party, in its cooperation with the modifying Party, shall be reimbursed by the modifying Party. All avoidance or mitigation measures shall be completed and any compensation due to the affected Party shall be agreed upon before the Significant Operational Change is made; provided that if the Significant Operational Change is caused by a Third Party, the allocation of costs of any Adverse Impacts shall be agreed upon by the Parties.

8.2.3. A Party exercising its contractual or legal rights to terminate the Contract will not cause a Significant Operational Change.

8.3. Significant Regulatory Changes: If, in accordance with Section 8.1, a Party receiving notice from the other Party of a Significant Regulatory Change believes that the proposed change may reasonably be expected to affect its performance under this Contract, either Party may propose modifications to this Contract. However, the modifications cannot be any broader than the scope that is reasonably necessary to address the issues raised by the Significant Regulatory Change. After receiving notice of a proposed Significant Regulatory Change, the Parties shall promptly meet and attempt to negotiate any necessary modifications. If the Parties are unable to negotiate any modifications, WAPA may take the necessary steps to implement the actions necessitated as a result of the Significant Regulatory Change. In the event WAPA incurs any costs Packet Pg. 179 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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associated with a Significant Regulatory Change or the implementation thereof, WAPA will charge Redding its share of such additional costs, as determined by WAPA, after consultation with Redding, and Redding shall pay such charges to the extent not covered by a then-current rate schedule.

9. PLANNING STANDARD:

Each Party shall plan independently to meet its own load, reserves, and contingencies through advance resource and transmission planning, construction of generating resources and transmission resources, and power purchases. In so planning, the Parties shall be obligated under this Contract to utilize a planning standard at least equal to NERC reliability standards and WECC regional criteria, as may be revised, amended, or superseded from time to time.

10. OPERATIONS:

WAPA complies with the operating standards, including the reliability standards, of FERC, NERC and WECC for the registered functions associated with its transmission system. WAPA also complies with NERC and WECC standards associated to a Balancing Authority, under contract with the host Balancing Authority Operator, as a Sub-Balancing Authority. Redding, as an independent interconnected utility operating within WAPA’s Sub-Balancing Authority Area, agrees and shall be obligated to abide by the operating standards and requirements of FERC, NERC and WECC, or WAPA acting as the Sub-Balancing Authority Operator, and the requirements set forth expressly in this Section 10, as these standards and requirements may be modified from time to time, and to provide the necessary information to ensure that WAPA can carry out its responsibilities as Sub-Balancing Authority Operator. WAPA will similarly be obligated to provide Redding the information necessary to ensure that Redding can maintain compliance with applicable reliability standards.
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10.1. Redding shall maintain or otherwise provide for Reserves at all times equal to Redding's share of Contingency Reserves required and calculated in accordance with Exhibit C, made a part hereof.

10.1.1. All Reserves required to be provided by Redding to meet the requirements of Exhibit C hereof shall be scheduled by Redding with WAPA, in accordance with Exhibit B hereto. WAPA will include Redding’s scheduled Reserves in calculating the Reserves available for the SubBalancing Authority Area. WAPA may call on Operating Reserves carried by Redding to respond to Emergency situations as determined by WAPA dispatchers.

10.1.2. In addition to the ability to purchase Reserves under the WAPA Open Access Transmission Tariff, Redding may purchase and import Frequency Response Reserve/Spinning Reserve and Non-Spinning Reserve from any entity within the BANC Balancing Authority Area or from a Balancing Authority Area adjacent to the BANC Balancing Authority Area to meet its Operating Reserve requirement. Redding will be responsible for the acquisition of transmission service either from WAPA or a Third Party sufficient to ensure the availability and delivery of Reserves. If Redding purchases Reserves from any other entity on its behalf, Redding is responsible for scheduling and communicating such arrangement with WAPA. Redding may also import Reserves from Balancing Authorities not adjacent to the BANC Balancing Authority if the practices of the BANC Balancing Authority allow for Reserve purchase and import from other non-adjacent Balancing Authorities.

10.1.3. If, at any time, the Reserves provided by Redding fall below Redding's Operating Reserve requirement and has not been dispatched to cover an urgent situation, Redding shall take immediate action to restore its Operating Reserve within ten (10) minutes to meet the Operating Packet Pg. 181 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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Reserve requirement. In the event Redding takes such action and, despite its best efforts, is unable to eliminate the deficiency in its Operating Reserve, such deficiency shall be deemed to have been supplied and purchased as Operating Reserve from WAPA. Such purchase shall be made for all hourly scheduling periods and portions thereof in which the deficiency in either Frequency Response Reserves, Spinning Reserve or Non-Spinning Reserve occurred. For example, if such deficiency occurs within an hourly scheduling period and is restored within the next hourly scheduling period, the purchase will be deemed to be made for two hourly scheduling periods. Redding shall pay for its deficiency in accordance with the rates, calculated for hourly periods, set forth in the Schedules of Rates posted by WAPA on WAPA’s OASIS.

10.1.4. If (1) WAPA’s obligations change for providing Operating Reserve for the Sub-Balancing Authority because of actions taken by the host Balancing Authority, FERC, WECC or NERC, and (2) such changed obligations justify a revision to the Operating Reserve requirement or requirement for additional Operating Reserves, WAPA shall revise the Parties’ obligations pursuant to Exhibit C, so as to maintain Redding's share of the changed obligations. WAPA shall notify Redding of any such revisions and the Parties shall have an opportunity to discuss the revisions before implementing them.

10.2. The Parties shall coordinate Scheduled Maintenance as required by this Section 10.2.

10.2.1. The Parties agree that each Party will make best efforts to schedule maintenance on generating units for times of the year when the units are not necessary to meet that Party’s Electric Power System load and firm power sales. Redding will submit outages in accordance with Packet Pg. 182 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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WAPA’s operating procedures in advance of the date specified for the particular maintenance outage to WAPA and shall notify WAPA of any schedule adjustments when they become known.

10.2.2. Each Party shall (1) notify the other Party based on the outage coordination timeline cited in WAPA Operating Procedure before beginning any Scheduled Maintenance of its facilities that may materially affect the other Party’s Electric Power System, and (2) notify the other Party and obtain that Party’s concurrence based on the outage coordination timeline cited in WAPA Operating Procedure, before beginning any Scheduled Maintenance of its facilities that are directly interconnected with the other Party’s Electric Power System; provided, however, that a Party may withhold concurrence only to the extent that Party is experiencing unusual operating conditions on its Electric Power System and, in that event, that Party will agree on an appropriate date and time to reschedule such Scheduled Maintenance.

10.3. Redding shall schedule its resources to meet its load, including sales to Third Parties, on a real-time basis, in accordance with the requirements and procedures described in Exhibit B hereto. WAPA may modify these procedures at any time and shall notify Redding of the changed procedure at least thirty (30) days in advance of their scheduled implementation; provided, however, that any such modification(s) shall be nondiscriminatory, and consistent with Good Utility Practice. For purposes of this Section 10.3, the term “procedures” shall include, but shall not be limited to, the time for submitting pre-schedules and the date of the monthly forecast. For accounting purposes under this Contract, the hourly metered amounts shall be the algebraic sum (net) of the hourly metered amounts at each POI between Redding and WAPA and Redding and Third Parties. ///
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10.4. WAPA requires specific operating data pertinent to operation of the SubBalancing Authority Area. Redding shall, at its own expense, provide such data to WAPA by owning, installing, and maintaining telemetering equipment at its generation resources and Points of Interconnection with WAPA and Third Parties to measure power and reactive flows between Redding’s Electric Power System and WAPA and between Redding’s Electric Power System and Third Parties, and such other data as may be agreed upon. Redding shall telemeter data from these resources and points to WAPA’s SOC, unless otherwise agreed. Further, if Redding owns such meters at the time meters are tested, WAPA shall be notified of the time and place for such test and shall be afforded the opportunity to witness such test. Redding shall provide documentation that its telemetering equipment is accurate within one quarter (1/4) of one (1) percent.

10.5. Each Party shall take immediate action to relieve or remedy an Emergency. Each Party shall notify the other Party’s schedulers or dispatchers immediately following an Emergency or Forced Outage of key facilities in accordance with the following:

10.5.1. Key facilities are generating resources that are considered important to interconnected operations by the Electric Power System that owns the facilities. Key facilities generally include:

10.5.1.1. An interconnection between Balancing Authorities.

10.5.1.2. Transmission operated at 100 kV and higher that can significantly affect inter- and intra-Balancing Authority operation.

10.5.1.3. Transmission from generating resources.

10.5.1.4. Generating equipment greater than Redding’s
deviation band.
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10.5.2. Redding shall notify WAPA’s SOC immediately, but in no case later than ten (10) minutes, following an Emergency or Forced Outage on a Redding key facility. WAPA shall notify Redding’s point of contact within ten (10) minutes following a Forced Outage on a WAPA key facility that WAPA determines, in its sole judgment, will materially affect Redding’s Electric Power System. Such notification of an Emergency or Forced Outage of a key facility shall include information regarding generator name or line terminal names, outage starting time, expected outage duration and reason for the outage. Forced Outages of equipment associated with key transmission circuits (capacitors, reactors, transformers, etc.) shall be reported in the same manner as key transmission circuits, if the outage significantly and materially affects the operation of the key transmission circuit.

10.5.3. If Redding experiences an Emergency or Forced Outage, Redding shall, at the time of notification to WAPA, use its best efforts to adjust its resources as necessary to balance loads and resources within the current hour. In addition, Redding shall continually keep the SOC appraised of the status of the Emergency and of corrective actions taken and planned.

10.5.4. Each Party shall promptly report to the other Party’s dispatchers or schedulers significant operating events that may materially affect the other Party’s Electric Power System or its operations. Significant operating events to be reported shall include, but not be limited to, any of the following events that may materially affect the other Party’s Electric Power System or operations:

10.5.4.1. Paralleling or separating the Parties’ Electric Power Systems;

10.5.4.2. Paralleling or separating a Party’s generating unit; Packet Pg. 185 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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10.5.4.3. Failure of a Party’s generating unit to start;

10.5.4.4. Scheduled or unscheduled shutdown or equipment clearance on transmission switches, breakers, transformers or any other electrical equipment associated with a key facility; and

10.5.4.5. Opening of connections between Redding’s
substations. Each Party shall keep the other Party’s dispatchers or schedulers apprised of the status of the significant operating event and of the corrective actions taken and planned, if applicable.

10.5.5. Redding shall notify WAPA’s SOC as soon as Redding determines a limitation of its resources available to meet load. Redding’s notification shall include the duration and nature of such limitation.

Redding shall continually keep WAPA’s SOC appraised of the status of the resource limitation and of the corrective actions taken and planned.

10.6. The goal of each Party is to minimize deviations between its own loads and resources. In keeping with this goal, Redding shall have an affirmative obligation to follow its DOT within each five (5) minute interval to minimize deviations within each five (5) minute interval. Redding’s net deviations within each five (5) minute interval, including Redding’s EIM participation, shall be accounted for in accordance with this Section 10.6.

10.6.1. During periods when WAPA and Redding are participating in EIM, deviations will be calculated in five (5) minute intervals. The method for determining Redding’s net deviation per five (5) minute interval is as follows:

10.6.1.1. Redding’s deviation is calculated for each five (5) minute interval as the algebraic sum of the delta between the EIM load forecast and metered load, and the delta between the Packet Pg. 186 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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generation DOTs and metered generation. The formula method for determining Redding’s net deviation over each five (5) minute interval shall be as follows:

DEVIATION5-minute (MW) = (LFEIM minus ΣLA) plus
(ΣGenA minus ΣDOT)
Where:
- LFEIM is EIM Load Forecast value for the 5-minute
interval;
- ΣLA is the average actual load for the 5-minute
interval;
- ΣGenA is the average actual total generation for the
5-minute interval; and,
- ΣDOT is the sum of Redding’s DOTs for the 5-
minute interval.

In the above calculation, a negative value indicates
under-generation by Redding’s Electric Power
System, and a positive value indicates overgeneration by Redding’s Electric Power System.

10.6.1.2. When EIM is not providing imbalance services, deviations occur over the scheduling hour when the net of Redding's schedules at Redding's POIs with WAPA’s system do not match the net of Redding's power flows at Redding’s POIs for the same hour. When EIM is not providing imbalance
services, the formula method for determining Redding's net deviation over an integrated one-hour scheduling period shall be as follows:

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DEVIATION (MWh) = (ΣPOIA) minus (ΣPOIS)
Where:
- ΣPOIA is the net of all POI actual metered
inflows plus actual metered outflows for the hour;
and,
- ΣPOIS is the net of all POI scheduled imports
plus scheduled exports for the hour.
- In the above calculation, a negative value
indicates under-generation by Redding’s Electric
Power System, and a positive value indicates
over-generation by Redding’s Electric Power
System.

10.6.2. Redding’s Maximum Deviation Band shall, unless otherwise agreed, be calculated according to Exhibit D and shall apply to each five (5) minute interval when EIM is providing imbalance services and over each integrated hour when EIM is not providing imbalance services.

Redding shall pay for the Maximum Deviation Band elected under WAPA’s then-effective Schedule of Rate for Regulation and Frequency Response Service and such purchase shall fulfill Redding’s regulation requirements.

10.6.2.1. If, for any applicable interval, Redding's deviation is positive (over-generation) or negative (under-generation) and exceeds the Maximum Deviation Band, Redding shall take steps to reduce the deviation to an amount within the Maximum Deviation Band as soon as possible by ensuring generation is following the DOT(s) and by taking steps to correct EIM load forecast errors, as applicable.

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10.6.3. After the fact, WAPA shall calculate and provide the data used to calculate the deviations to Redding for each five (5) minute interval of the hour.

10.6.4. For hours when EIM is providing imbalance services, Redding and WAPA agree to settle deviations financially as follows:

10.6.4.1. For deviations within the Maximum Deviation Band, both positive and negative, there will be no financial settlement between WAPA and Redding. Redding agrees to settle the
energy with MO or EIM Entity for EIM UIE.

10.6.4.2. For positive deviations above the Maximum Deviation Band (over-generation), Redding agrees to settle the energy with MO for EIM UIE.

10.6.4.3. For negative deviations below the Maximum
Deviation Band (under-generation), Redding agrees the amount of negative deviation energy in excess of the Maximum Deviation Band shall be subject to a penalty payable to WAPA equal to fifty (50) percent of the greater of the Central Valley Project (CVP) generation actual cost or the Day-Ahead LMP of CVP generation pursuant to the CAISO/WAPA Market Efficiency Enhancement Agreement Day-Ahead LMP or the Day-Ahead LMP at the CVP generation aggregated Pnode after MEEA expires for the
deviation energy that exceeds the Maximum Deviation Band as provided for in the then-active Schedule of Rate for Energy Imbalance Market Energy Imbalance Service and Schedule of Rate for Energy Imbalance Market Generator Imbalance Service.

10.6.5. For hours when EIM is not providing imbalance services, WAPA and Redding agree to settle the energy for all deviations financially in accordance with the then-effective Schedule of Rate for Energy Imbalance Packet Pg. 189 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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Service and Schedule of Rate for Generator Imbalance Service, or any superseding rate schedules.

10.6.5.1. For negative deviations below the Maximum Deviation Band (under-generation), Redding agrees the amount of
negative deviation energy in excess of the Maximum Deviation Band shall be subject to a penalty payable to WAPA equal to 50 percent of the greater of the CVP generation actual cost or the Day-Ahead LMP of CVP generation per CAISO/WAPA Market
Efficiency Enhancement Agreement or the Day-Ahead LMP at CVP generation aggregated Pnode after MEEA expires for the deviation energy that exceeds the Maximum Deviation Band.

10.6.6. If Redding experiences an Emergency or unexpected loss or interruption of generating or transmission facilities that results in a net negative (under-generation) deviation in excess of the Maximum Deviation Band, Redding shall, within ten (10) minutes of that loss or interruption, notify WAPA regarding necessary changes to Redding’s schedules.

Redding will not be subject to the under-generation deviation penalty such as that cited in Paragraphs 10.6.4.3 or 10.6.5.1 or similarly in the applicable Schedule of Rate, if the Emergency or unexpected loss is reported within ten (10) minutes.

10.7. Each Party shall use its best efforts to minimize the net reactive power flow between the Parties’ Electric Power Systems measured at the POI, unless otherwise agreed. To meet this obligation, each Party shall install and operate the necessary facilities on its own Electric Power System at its own expense to monitor and control its reactive power flow. Redding shall use best efforts to follow the area voltage schedules implemented by WAPA specific to each POI, as those schedules may be revised from time to time by WAPA.

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10.8. Programs for manual load shedding and rotating interruptions of Redding load are essential for reliable utility operation. The requirements and standards contained in this Section 10.8 represent Good Utility Practice, are required by FERC, NERC and WECC standards, and are mutual for both Parties.

10.8.1. Redding shall cooperate with WAPA to develop and implement, as necessary, plans for manual load shedding, voluntary and mandatory, consistent with both of the following: (1) plans for load shedding observed in the Balancing Authority; and (2) regulations and orders of regulatory or other agencies having jurisdiction over such matters. Such plans shall include provisions for cases of sudden emergency loss of an energy resource of sufficient size or capacity to require interruption of service to non-interruptible utility customers such as failure of certain generation or transmission facilities.

10.8.2. If, at any time, the load requirements of WAPA’s Sub-Balancing Authority exceed the power sources available to the Sub-Balancing Authority to meet such load requirements and the Balancing Authority is unable to help the situation, the Parties shall implement load shedding, so as to maintain bulk electric system reliability, as far as practicable, with due consideration for the requirements of public health and safety. Load shedding amounts will be based upon annually calculated load shed share calculated using each entity’s previous year’s peak load and documented in WAPA operating procedures, unless required otherwise by circumstances beyond the control of the Parties. When manual load shedding or rotating interruptions are necessary, WAPA’s SOC shall notify Redding’s dispatchers of the required action in the form of an Operating Instruction, and Redding shall comply immediately. WAPA shall not initiate load shedding for economic reasons or for lack of sufficient energy ///
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supply by another customer of WAPA to meet the load of such other customer of WAPA.

10.9. WAPA may temporarily separate all or any part of the facilities of its Electric Power System from all or any part of Redding's Electric Power System if WAPA determines at any time that the following conditions exist or that the described action is necessary: (1) in case of an Emergency that directly affects WAPA’s ability to provide power to Redding; (2) to prevent a hazard to life or property; or (3) when the operation of WAPA’s Electric Power System is suspended, interrupted or interfered with as a result of an Uncontrollable Force.

In that event, WAPA’s SOC shall notify Redding’s dispatchers or schedulers if Redding’s action is required, and Redding shall comply immediately. Service so interrupted or interfered with shall be restored as soon as practicable. WAPA shall contact Redding's schedulers or dispatchers to review changes to Redding's schedules and coordinate plans to restore service or parallel facilities.

10.10. All interruptions of service or separation of the Electric Power Systems of the Parties, other than those expressly described in Sections 10.8 and 10.9 hereof, shall be made as mutually scheduled by the Parties.

10.11. The Parties have installed automatic devices to assist in maintaining the integrity and reliability of their respective Electric Power Systems and to protect their customers from damage, injury, or prolonged outages. Service under this Contract is subject to interruption in the event of the operation of such devices.

Service interrupted or reduced as a result of the operation of such devices shall be restored at the earliest possible time. If (1) automatic protective devices on WAPA’s Electric Power System operate, (2) Redding’s service from WAPA is reduced as a result of that operation, and (3) Redding provides energy to WAPA Packet Pg. 192 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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at that time, the following shall apply:

10.11.1. Redding shall be obligated to adjust its operations during the hourly scheduling period in which the event occurred to prevent energy deliveries to WAPA, unless WAPA requests such energy from Redding; and

10.11.2. If so requested by WAPA, the energy delivered by Redding to WAPA within that first hourly scheduling period in excess of Redding’s Maximum Deviation Band shall, at Redding’s option, either be paid for by WAPA under a separate agreement, or returned by WAPA during a like time period or at a time mutually acceptable to the Parties.

10.12. In the event WAPA incurs additional charges for the performance of this Contract, WAPA shall meet and confer with Redding to determine the allocation of such charges. WAPA will charge Redding its reasonable share, as determined by WAPA, and Redding shall pay such charges, to the extent such charges are not covered in an existing rate schedule.

11. METERING:

Power delivered to Redding through its interconnections with WAPA and Third Parties shall be measured by suitable electric meters installed at the Points of Interconnection and at Redding's generating resources directly connected or proposed to be directly connected to WAPA’s Electric Power System in accordance with the provisions of the Contract for Interconnection and the terms herein.

11.1. Except for meters owned by WAPA and Third Parties, Redding shall provide, install, own, operate, and maintain meters, backup meters and associated equipment at each Point of Interconnection and generating resource, unless otherwise agreed.
///
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11.2. Metering equipment located at Points of Interconnection shall measure and record real and reactive power flow in both directions.

11.3. Redding’s metering equipment for its generating resources shall measure and record both net real and reactive power generated.

11.4. Such “in” and “out” meters specified under Section 11.2 and 11.3 hereof shall be designed to prevent reverse registration and measure and record continuously deliveries of kilowatts, kilovars, and, if required, line loss.

11.5. Redding shall provide written notice to WAPA and other interconnected parties if it intends to have the meters specified in this Section 11 replaced, except in the case of equipment failure. In the case of equipment failure, when mutually agreed, oral notification may be deemed to fulfill the notification requirements.

11.6. All meters shall be sealed and the seals shall be broken only upon occasions when the meters are to be inspected, tested, or adjusted.

11.7. Measurement of power deliveries at Points of Interconnection and generating resources shall be made at the high voltage bus (net of station uses), unless otherwise agreed by the Parties.

11.8. Solid state meters shall be inspected and tested by the owner at least once every thirty (30) months, all other meters shall be inspected and tested at least once each year, and at any reasonable time upon request of the other Party. Representatives of the other Party shall be afforded the opportunity to be present on such occasions.

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11.9. Any metering equipment found to be defective or inaccurate shall be repaired, adjusted, or replaced. Should any meter fail to register, the demand created and energy delivered hereunder during such period of failure to register shall be replaced with those recorded by the backup meters in the corresponding period, or if the backup meters also fail to register, demand created and energy delivered should be estimated by the Parties and appropriate Third Parties from the best information available.

11.10. Meters found to be inaccurate by one (1) percent or more shall be immediately repaired, adjusted, or replaced. Adjustment shall be made to compensate for the effect of the inaccuracy. Such adjustment shall be made to correct all measurement made by the inaccurate meter for: (1) the actual period during which inaccurate measurements were made, if that period can be determined; or if not, (2) the period immediately preceding the test from the date of the last previous test of the meter, unless provided differently in other written contracts and agreements between the Parties.

11.11. Corrections in billing resulting from inaccurate meters shall be made as soon as possible. Such correction, when made, shall constitute full adjustment of any claim between the Parties arising out of such inaccuracy of meters.

11.12. Representatives present at the meter tests shall use best efforts to estimate the amount of capacity and energy created during the meter test.

Demand and energy so created shall be adjusted from the meter registration accordingly.

11.13. The owner of the meters shall be responsible for the reading of the meters, which shall be done on the first Business Day of each calendar month, Packet Pg. 195 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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and at such other times as may be required to carry out the provision of this Contract.

11.14. WAPA assumes no liabilities for any claims, demands, cost, losses, causes of action, damages, or liability of whatsoever kind associated with or arising out of or resulting from Redding’s use of WAPA meter data obtained either directly from the meter (Remote Interrogation via Meter Data Management System) or indirectly by downloading such data via Secured File Transfer Protocol. Redding agrees to indemnify and hold harmless WAPA, its employees or agents, from any claims, demands, costs, losses, causes of action, damages, or liability of whatsoever kind associated with or arising out of or resulting from Redding’s use of WAPA meter data.

12. BILLING AND PAYMENT:

WAPA may collect in advance, by billing on or before the fifteenth (15th) day of the preceding month, for charges associated with the Maximum Deviation Band for the following month. Charges for other services rendered or costs incurred during the preceding month shall be billed to Redding on or after the last day of each month.

Charges shall be separately itemized. Sufficient supporting information and documentation to establish the basis for and appropriateness of each charge in the bill shall accompany each bill submitted. Any claim by Redding that WAPA has not provided sufficient information and documentation shall not relieve Redding of its obligations under this Contract.

12.1. If charges cannot be determined accurately for preparing a bill under this Contract, WAPA may use its best estimates in preparing the bill. All estimated charges shall be labeled as such, and WAPA shall document the basis for the ///
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estimate used. Estimated billings shall be prepared and paid in the same manner as other billings under this Contract.

12.2. When final and complete billing information becomes available and charges can be determined accurately, WAPA will prepare and submit an adjusted bill to Redding. Additional payments by Redding shall be made in accordance with the payment provisions of this Section 12. At WAPA’s discretion, refunds by WAPA may be a payment to Redding or appear as a credit on the next monthly bill(s) to Redding.

12.3. All payments for services provided pursuant to this Contract shall be made directly to WAPA unless otherwise agreed to and arranged for by the Parties.

Redding's payments of its obligations arising under this Contract are not subject to any reduction, whether by offset, payments into escrow, or otherwise as a result of: (1) a dispute between Redding and WAPA; (2) a dispute between Redding and a Third Party, or (3) the rights and obligations of WAPA and Redding under any separate agreement between them.

12.4. Payments of any bills to WAPA are due and payable by Redding before the close of business ten (10) calendar days after the date of issuance of each bill or the next Business Day thereafter if said day is not a Business Day.

Payments should be sent by Redding to WAPA at the address contained in Exhibit E.

12.5. Bills or portions of bills that are not paid in full on or before the payment due date shall thereafter accrue a late charge calculated in accordance with WAPA’s General Power Contract Provisions then in effect. ///
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12.6. If any portion of a bill is disputed, Redding shall pay the full amount and, on or before the payment due date notify WAPA in writing of the amount in dispute and the specific basis for the dispute. Within thirty (30) days of WAPA’s receipt of Redding's notice of a dispute (or such extended period as the Parties may agree upon), the Parties shall attempt to agree on any adjustments that may be appropriate to the disputed portion of the bill, including any refund.

12.7. Redding shall pay for the service furnished hereunder in accordance with the rates, charges, and conditions set forth in the CVP Schedule of Rate for Regulation and Frequency Response Service, Schedule of Rate for Energy Imbalance Service, Schedule of Rate for Generator Imbalance Service, Schedule of Rate for Energy Imbalance Market Energy Imbalance Service, and/or Schedule of Rate for Energy Imbalance Market Generator Imbalance Service, effective October 1, 2024, or any superseding rate schedule.

12.8. Redding shall be obligated to pay any costs incurred by WAPA under EIM due to Redding’s operations that are not otherwise settled by Redding directly with MO or EIM Entity.

12.9. The Parties expect each IOA Customer will settle, with the MO or EIM Entity, all imbalance charges associated with its loads and resources within WAPA’s Sub-Balancing Authority Area. If WAPA is assigned any imbalance charges (including penalties) associated with any IOA Customer’s loads or resources, WAPA will pass through such charges to the responsible IOA Customer. WAPA will pass through the charges in the same manner as such charges are assigned to WAPA. If WAPA is unable to determine how to pass through such charges, the Parties will meet in an attempt to determine a fair allocation of such charges between the IOA Customers. If the Parties are unable Packet Pg. 198 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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to reach a resolution, after considering the IOA Customers’ input, WAPA will decide the allocation. After a decision is made by WAPA staff, if Redding is not satisfied with the decision, Redding shall have fifteen (15) days from the date of WAPA’s decision to appeal the change to WAPA’s Senior Vice President and Sierra Nevada Regional Manager. WAPA should not incur any costs due to Redding’s participation in EIM or due to Redding’s use of the Deviation Band.

13. SEVERABILITY:

In the event that any material term, covenant, or condition of this Contract, or the application of such material term, covenant or condition, shall be held invalid as to any person or circumstance by any court having jurisdiction, the Parties shall have ninety (90) days, or such other time as agreed by the Parties, to negotiate provisions which restore the benefits and burdens of this Contract between the Parties. If the Parties fail to agree on such provisions, this Contract shall terminate and be of no further force or effect; except that obligations to pay for service rendered hereunder shall remain until satisfied.

14. MODIFICATION OF THIS CONTRACT:

Except as provided herein, neither this Contract nor any term, covenant, or condition hereof may be terminated, amended, supplemented, waived, or modified except by an instrument in writing, mutually agreed to and executed by each Party.

15. EXHIBITS:

The initial Exhibits A, B, C, D, and E are attached hereto, made a part hereof and shall be in full force and effect in accordance with their respective terms until superseded by a subsequent Exhibit(s). The Exhibit(s) may be modified from time to time, in accordance with this Contract.
///
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16. RECORDS AND AUDITS:

Each Party shall maintain appropriate records and supporting documentation applicable to the provisions of this Contract. Such records and supporting documentation shall be retained for at least three (3) years after the close of the calendar year. Upon written request and reasonable notice, each Party agrees to provide to the other Party access to such records and supporting documentation for review and inspection. The records and supporting documentation may be inspected and copied, at the requesting Party’s expense, any time during regular office hours. Any exceptions noted in any audit process will be forwarded to the audited Party for review and response. The audited Party agrees to respond within sixty (60) days after receipt of any such exception. Any adjustments to records and supporting documentation as a result of an agreed audit exception shall be made for the period to which such exception applies.

17. RELATIONSHIP OF THE PARTIES:

Except to the extent otherwise provided herein, the covenants, obligations and liabilities of the Parties are intended to be several and not joint or collective, and nothing herein contained shall ever be construed to create an association, joint venture, trust or partnership, or to impose a trust or partnership covenant, obligation or liability on or with regard to any one or more of the Parties. Each Party shall be responsible for its own covenants, obligations and liabilities as herein provided. No Party shall be under the control of or shall be deemed to control the other Party. No Party shall be the agent of or have a right or power to bind the other Party without its express written consent, except as expressly provided in this Contract. Except as provided herein, no provision of this Contract is intended to, or shall be for the benefit of, or construed to create rights in, or grant remedies to, any person or entity not a Party hereto.

18. NON-DEDICATION OF FACILITIES:

The Parties do not intend to dedicate and nothing in this Contract shall be construed as Packet Pg. 200 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
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constituting a dedication by either Party of its properties or facilities, or any part thereof, to the other Party or to the customers of either Party.

19. GOVERNING LAW:

This Contract shall be interpreted, governed by and construed under the laws of the State of California or the laws of the United States, as applicable, as if executed and to be performed wholly within the State of California.

20. DEFAULT:

The failure of either Party to perform any of its material obligations under this Contract shall constitute a default under this Contract. If either Party defaults under this Contract, the other Party may terminate this Contract; provided that prior to such termination the other Party must provide the defaulting Party with written notice stating:
1) the Party’s intent to terminate; 2) the date of such intended termination; 3) the specific grounds for termination; 4) specific actions which the defaulting Party must take to cure the default, if any; and 5) a reasonable period of time, which shall not be less than sixty (60) calendar days, within which the defaulting Party may take action to cure the default and avoid termination, provided there is any action which can be taken to cure the default.

21. NOTICES:

Any notice, demand, or request required by this Contract to be given in writing to either Party shall be considered properly given when delivered in person, or sent by either registered or certified mail, postage prepaid, or prepaid telegram addressed to the person and the address set forth in Exhibit E attached hereto. Any Party may change the designation of the person or the address to which such notices are to be sent by notice in writing to the other Party given in accordance with the foregoing provisions. ///
Packet Pg. 201 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
Contract 23-SNR-02969 38
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22. DISPUTE RESOLUTION:

Any dispute arising between the Parties regarding their rights or the performance of their obligations under this Contract shall be resolved according to the following procedures. This section does not create any rights to modify or amend this Contract.

22.1. Informal Settlement Procedure. The Parties shall attempt in good faith to resolve any dispute arising out of or relating to this Contract promptly by negotiations between Redding’s General Manager or his or her designated representative and an executive of similar authority of WAPA. Either Party may give the other Party written notice of any dispute and, within twenty (20) calendar days after delivery of such notice, the executives shall meet at a mutually acceptable time and place and thereafter as often as they reasonably deem necessary, but at least weekly, to exchange information and to attempt to resolve the dispute. If the matter has not been resolved within sixty (60) calendar days of the first meeting, either Party may initiate a mediation of the controversy or may initiate formal dispute resolution under Section 22.2.

22.2. Formal Settlement Procedure. In the absence of a voluntary resolution reached in accordance with Section 22.1, either Party may seek to resolve a dispute by seeking judicial relief. The Party, with the written consent of the other Party, in the alternative may submit the dispute to non-binding arbitration which shall be conducted using any procedures agreed to by the Parties. No litigation or arbitration shall be commenced until not less than twenty (20) calendar days after notice of the initiation of proceedings has been provided to both Parties; Provided, however, that the preceding requirement shall not preclude a Party from initiating litigation or arbitration to secure any legal right which may otherwise be forfeited due to limitation or requirements imposed by rule or statute.
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Packet Pg. 202 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
Contract 23-SNR-02969 39
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23. GENERAL POWER CONTRACT PROVISIONS:

The General Power Contract Provisions (GPCP), dated September 1, 2007, as they may apply, are attached hereto, and are hereby made a part of this Contract the same as if they had been expressly set forth herein; Provided that Provisions 5, 6, 7, 8, 9, 12, 15, 16, 17, 18, 19, 20, 21, and 22 shall not apply to this Contract.

24. AUTHORITY TO EXECUTE:

Each individual signing this Contract certifies that the Party represented has duly authorized such individual to execute this Contract which binds and obligates the Party.

25. EXECUTION BY COUNTERPARTS:

Contract may be executed in any number of counterparts and, upon execution and delivery by each Party, the executed and delivered counterparts together shall have the same force and effect as an original instrument as if all Parties had signed the same instrument. Any signature page of this Contract may be detached from any counterpart of this Contract without impairing the legal effect of any signatures thereon and may be attached to another counterpart of this Contract identical in form hereto, by having attached to it one or more signature pages.

26. ELECTRONIC SIGNATURES:

The Parties agree that this Contract may be executed by handwritten signature or digitally signed using Adobe Sign or DocuSign. An electronic or digital signature is the same as a handwritten signature and shall be considered valid and acceptable. ///
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Packet Pg. 203 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Contract 23-SNR-02969
Contract 23-SNR-02969 40
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IN WITNESS WHEREOF, WAPA and Redding have caused this Contract to be executed as of the date first written above.

WESTERN AREA POWER ADMINISTRATION
By:

Bryan W. Griess
Title: Vice President and Manager
Of Operations for Sierra Nevada Region
For Sierra Nevada Region
Address: 114 Parkshore Drive
Folsom, CA 95630

CITY OF REDDING
By:

Name:
(Attest) Title:

By: Address__________________________
Title:

Packet Pg. 204 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit A to
Contract 23-SNR-02969

EXHIBIT A
Redding Net Interchange Determination

1. This Exhibit A, to be effective under and as a part of Contract 23-SNR-02969 (Contract), shall become effective upon execution of the Contract; and shall remain in effect until either superseded by another Exhibit A or termination of the Contract.

2. This Exhibit A applies to net interchange accounting required to calculate Redding’s deviations in accordance with this Contract. This Exhibit A may be changed by agreement of the Parties to reflect Redding’s Electric Power System changes, addition or deletion of Points of Interconnection, metering changes, or such other modifications to Redding or WAPA Electric Power Systems that require a modification to this Exhibit A. To determine Redding’s System Net Interchange, including both demand and energy, it is necessary to add algebraically the various metered inflows of power to and outflows of power from Redding’s Points of Interconnection.

3. Hourly Net Interchange Determination:

Redding’s Net Interchange shall be determined for any hour by algebraically summing the following metered deliveries to and from Redding, adjusted for losses using the applicable loss factors from Section 5, net of adjustments in Section 4. Net Interchange demand and energy for any hour shall be the algebraic sum of the following metered Points of Interconnection:
• Airport-East Redding #1
• Airport-East Redding #2
• Airport-Airport Redding 115kv line
• Beltline-Keswick
• Keswick-Eureka
• Whiskeytown
The Net Interchange energy for any month shall be the sum of the hourly measured quantities so determined from the Points of Interconnection.

4. Adjustments to Redding Net Interchange:

Redding Net Interchange as determined in Section 3 shall be adjusted to reflect Redding’s power deliveries to Redding’s customers outside of its system. Presently, these customers are:
• Redding has no such customers.

Packet Pg. 205 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit A to
Contract 23-SNR-02969
Loss factors from Section 5 of this Exhibit A shall be applied to the above customer loads to reflect losses from Redding’s system to the loads.

5. Loss Factors:

Loss and transmission adjustment factors to be multiplied by Redding scheduled quantities at Points of Interconnection and for load specified in Section 4 are as follows:
• Base Resource Allocation Delivery Loss Factor = 0%
• Redding Imports/Exports over CVP Transmission = 1.6%
• Transformation Losses, if any
Losses shall be settled with WAPA in accordance with its business practices.

6. Existing Meters:

The table below provides a list of the meters currently in place to monitor Redding’s Net Interchange and implement the net interchange accounting specified in this Exhibit A.

WAPA shall revise Table A-l to correspond with any additions or deletions to the list of meters pursuant to this Contract.

Listing of Meters Used to Determine Net Interchange
Airport E Redding Line 1
Airport E Redding Line 2
Airport-Airport
Keswick-Beltline
Keswick-Eureka
Whiskeytown
Packet Pg. 206 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit B to
Contract 23-SNR-02969

EXHIBIT B
Scheduling Procedures

1. This Exhibit B, to be effective under and as a part of Contract 23-SNR-02969 (Contract), shall become effective upon execution of the Contract; and shall remain in effect until either superseded by another Exhibit B or termination of the Contract.

2. General:

Redding shall separately schedule power deliveries to its Electric Power System, to loads outside Redding’s Electric Power System but within WAPA's Sub-Balancing Authority Area, and to loads outside WAPA's Sub-Balancing Authority Area. Redding shall schedule generation from each of its generating resources with WAPA in a form and format to be agreed upon. Redding may change its generating resources as necessary to meet its load. Redding's hourly schedules at the Points of Interconnection and to loads outside of Redding’s Electric Power System shall be in whole megawatts and be transmitted by NERC E-tag and any changes confirmed by voice communication to WAPA's Energy Control Center. In the event of a failure of the data link, Redding shall send data to WAPA by electronic mail or use any other agreed upon method of data transfers. All losses shall be accounted for pursuant to Exhibit A hereto; provided, however, that separate loss factors may be specified for services provided under separate agreements but scheduled in accordance with this Contract. In that event, such separate loss factors shall apply to those specific services scheduled under this Contract.

2.1 WAPA and Redding are participants in the California Independent System Operator’s (CAISO) Western Energy Imbalance Market (EIM) which transfers energy dynamically during the scheduling hour. Prior to the operating hour, Redding will create and update electronic tags in accordance with the EIM Entity business practices and Section B.5 of this Exhibit B.

3. Monthly Forecast:

Five (5) Business Days before the end of each month, Redding shall provide WAPA with a non-binding daily forecast for the following month including on-peak and off-peak information specifying: (1) generation from each of Redding's generating resources, (2) daily purchase of WAPA energy, (3) Non-Interruptible and Interruptible Third Party capacity and energy purchases (imports), (4) Non-Interruptible and Interruptible Third Party capacity and energy sales (exports), (5) purchases of any other power services from WAPA or Third Parties, (6) Contingency Reserves provided by Redding, (7) monthly total schedules for items 1-6 (8) forecasted monthly peak, and (9) other information as agreed. Such information shall be provided by Redding in a typical weekday, Saturday and Sunday format.

Packet Pg. 207 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit B to
Contract 23-SNR-02969

4. Daily Preschedule:

WAPA and Redding agree to use the WECC Preschedule Calendar as a basis for developing the prescheduling dates.

4.1 For schedules outside of WAPA's Sub-Balancing Authority Area, Redding shall notify WAPA no later than 10:00 a.m. on each Business Day, or as otherwise agreed by the Parties, of its preschedules for each following day, up to and including the following Business Day. Such preschedules shall include suppliers and purchasers, type of transaction, (e.g., Unit Contingent or Interruptible or NonInterruptible) hourly amounts, and daily totals. In addition, Redding shall notify WAPA of the type of transmission arrangements made with intervening Balancing Authority Areas to affect the transactions. A properly completed NERC E-tag meets this requirement.

4.2 By 2:00 p.m. of each Business Day, Redding shall transmit to WAPA the hourly preschedules, containing the information listed in Section 11 of this Exhibit B, in a format agreed upon by the Parties. Redding may update the preschedules before midnight as more current information becomes available, so that the preschedules can reflect Redding’s most current Electric Power System conditions.

5. At Midnight:

The preschedule becomes the schedule of the day. Redding shall make any changes to the schedule in accordance with timeframes and communication protocols outlined in the Business Practices of the Market Operator. Redding shall also contact the SOC by voice communication no later than twenty (20) minutes before the hour to verify Redding's net schedules. The Parties dispatchers may mutually agree to verify several hours of schedules before implementation but must confirm any changes. After this twenty (20) minute lock out period, no additional changes to the schedule shall be accepted, except when Redding, WAPA, or the Balancing Authority Area suffers an Emergency or when schedules into WAPA's Sub-Balancing Authority Area are curtailed or modified because of Unscheduled Flow or abnormal operating conditions. In that event, the Parties shall agree to schedule changes after the twenty (20) minute lockout period; after the scheduling hour has passed, the schedule, so changed, becomes the final schedule of the hour and Redding may no longer change the final schedule.

5.1 If the scheduling data link between WAPA and Redding fails, Redding shall affect the schedule changes by voice communication, confirmed by electronic mail transmittal; the time of the schedule change shall be the time of the voice communication or as agreed by the Parties. Changes received after the lockout time shall not be accepted, unless otherwise agreed.

Packet Pg. 208 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit B to
Contract 23-SNR-02969

6. EIM:

6.1 Dynamically scheduled energy as a result of EIM dispatch is permitted as necessary for participation in EIM which transfers energy dynamically during the scheduling hour. There are two EIM dynamic E-tags created for each day with no energy profile and maximum expected transmission profile – one created by WAPA’s Merchant and one created by the Customer, both of which can only be updated by the entity that created them [outside of the automated dynamic E-tag hourly updates performed by the EIM Entity (SMUD/BANC)]. After each hour, SMUD/BANC’s automated system will enter the net energy transferred due to EIM dispatches during the hour into the appropriate EIM dynamic E-tag.

6.2 If the EIM dynamic E-tag automated value is incorrect due to WAPA or Customer issues (bad forecast data, technical issues, etc.) WASN and the Customer will work to resolve the issue and may adjust the appropriate EIM dynamic E-tag with the new agreed upon values within NERC guidelines (currently within 168 hours or one week).

6.3 If the EIM dynamic E-tag automated value is incorrect due to CAISO issues ((bad forecast data, technical issues, etc.) resolution will be via the CAISO issue resolution process (currently CIDI tickets).

7. Deviation Energy:

7.1 During normal operations (EIM is balancing Sub-Balancing Authority Area real time loads), WAPA EMS will calculate deviations for each five (5) minute interval.

The data points used in the calculations will be shared with Redding for their tracking of deviations.

7.2 During periods that EIM is unavailable, after each scheduling hour, when the actual integrated hourly Redding Net Interchange is available, WAPA shall calculate the amount of deviation for each hour based on the calculation described in Section

10.6.1.2 of the Contract. Redding and WAPA will check out on deviations after each hour.

8. Final Schedules:

At the end of each day (midnight), the final hourly schedules, including Redding's actual generation from its generating resources, after verification by Redding and WAPA, shall become the schedule of that day subject to the conditions stated above in B.5.

Packet Pg. 209 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit B to
Contract 23-SNR-02969

9. Emergency:

If during the current scheduling hour, Redding suffers an Emergency, including, but not limited to, a Forced Outage of transmission or interruption of scheduled firm power supply, Redding shall notify WAPA of the interruption. Redding shall inform WAPA regarding the necessary adjustments to the schedules for the scheduling hour by voice communication within the first ten (10) minutes after the Emergency occurs. If the Emergency extends beyond the current scheduling hour, Redding shall adjust subsequent hourly schedules to reflect Redding’s then-current Electric Power System conditions.

10. Reports:

Unless otherwise agreed by the Parties, Redding shall provide WAPA with daily reports transmitted in a mutually agreed upon manner at least twice a week throughout the month, and monthly reports, within five (5) Business Days after the end of each calendar month, in a format agreed upon by both Parties consisting of:

10.1 Actual daily and hourly final scheduled transactions with daily totals.

10.2 Actual daily and hourly generation of Redding's generating resources.

10.3 Actual daily and hourly Redding System load.

10.4 Monthly summary of the final schedules for items 1-4.

10.5 Operating Reserves for each hour.

11. Reconciliation of Actual and Scheduled Data:

Except as otherwise provided in this Contract, or unless otherwise agreed by the Parties:

11.1 When EIM is available, the integrated 5-minute interval telemetered data shall serve as the normal basis for deviation accounting within the Maximum Deviation Band as set forth in Exhibit D. Each 5-minute interval will be settled separately, and

11.2 When EIM is not available, the integrated hourly telemetered data shall serve as the normal basis for deviation accounting within the Maximum Deviation Band as set forth in Exhibit D.

WAPA shall use the actual revenue meter register data to calculate charges for deviation outside the Maximum Deviation Band.

Packet Pg. 210 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit B to
Contract 23-SNR-02969

12. Information to be Scheduled by Redding:

The hourly preschedules and schedules shall include the following quantities pursuant to Exhibit A of this Contract:

12.1 Redding Electric Power System load,

12.2 Generation from each generation resource,

12.3 Total generation from generating resources,

12.4 Schedules at Points of Interconnection:

12.4.1 Firm power purchases from each Third Party

12.4.2 Firm power sales to each Third Party

12.4.3 Interruptible Energy purchases from each Third Party

12.4.4 Interruptible Energy sales to each Third Party

12.4.5 Energy purchased from WAPA

12.4.6 Energy sold to WAPA

12.4.7 Contingency Reserves self-provided and purchased by source

12.4.8 Redding-owned generation wheeled across WAPA’s system,

12.5 Amount of limitation on Redding's generating resources,

12.6 Dynamic Schedules for energy received or delivered via EIM,

12.7 Other information, as agreed from time to time.

13. Electronic Tagging
The Balancing Authority Area and WAPA require all energy transactions crossing the host Balancing Authority Area boundary, WAPA's Sub-Balancing Authority Area boundary, or those wheeled entirely within the WAPA Sub-Balancing Authority Area or host Balancing Authority Area to be tagged with a NERC E-tag.

Packet Pg. 211 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit C to
Contract 23-SNR-02969

EXHIBIT C
Reserve Obligations

1. This Exhibit C, to be effective under and as a part of Contract 23-SNR-02969 (Contract), shall become effective upon execution of the Contract; and shall remain in effect until either superseded by another Exhibit C or termination of the Contract.

2. Determination of Redding Reserve Quantities:

2.1 WAPA is responsible for assuring that adequate Operating Reserves are available to cover WAPA’s share of the Balancing Authority Area’s contingency reserve requirement, as determined on an hourly basis by the Balancing Authority Operator. Redding will have the responsibility for covering Redding’s Load Ratio Share (LRS) of Contingency Reserves as part of such Operating Reserve requirements, plus any additional Contingency Reserves required for Redding’s use of Interruptible Energy. WAPA shall promptly notify Redding of any change to the Contingency Reserve requirements.

2.2 The purpose of this Exhibit C is to define the Contingency Reserve requirements of the WAPA Sub-Balancing Authority and to specify the method of calculating the apportionment thereof among WAPA and each interconnected utility or load resident within the WAPA Sub-Balancing Authority Area that has a contractual obligation for an apportionment of the Sub Balancing Authority Contingency Reserves. All Contingency Reserve requirement calculations derived herein shall be rounded up to the next whole megawatt.

2.3 This Exhibit C has been developed for the purpose of sharing Contingency Reserves based on the annual non-coincident peak load of each interconnected utility or load resident within the WAPA Sub-Balancing Authority that has a contractual obligation for an apportionment of the Sub-Balancing Authority Contingency Reserves. Any Reserve requirements necessary to meet NERC and WECC standards for interruptible imports, and on-demand contracts are the responsibility of Redding.

2.4 For the purpose of this Exhibit C, Redding’s Annual Peak Load shall mean the annual maximum non-coincident peak demand (in whole MWs) of Redding’s Electric Power System during the period from November 1st of the prior year through October 31st of the current year.

2.5 In December of each year, Redding’s Annual Peak Load Obligation shall be determined by calculating the difference between Redding’s Annual Peak Load and Packet Pg. 212 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit C to
Contract 23-SNR-02969
the product of WAPA’s Annual Peak Load obligation (maximum base resource scheduled in current year) multiplied by Redding’s Base Resource allocated percentage.

2.6 In December of each year, WAPA shall determine its Annual Peak Load Obligation, which is defined as WAPA’s annual peak Base Resource delivery (expressed in MWs) during the period from November 1st of the prior year through October 31st of the current year.

3. WAPA may change the Reserves requirements as necessary to reflect any changes under the Balancing Authority Area agreement with the Balancing Authority Operator.

4. The LRS for Redding is determined as follows:

Redding LRS = (Redding Annual Peak Load Obligation) divided by (Redding Annual Peak Load Obligation + WAPA Annual Peak Load Obligation + Third Party Annual Peak Load Obligation)
Where:
• Redding’s Annual Peak Load Obligation = Redding’s annual maximum noncoincident peak load obligation as set forth in Section 2.5. • WAPA Annual Peak Load Obligation = WAPA’s annual peak load obligation as set forth in Section 2.6.
• Third Party Annual Peak Load Obligation = Annual maximum noncoincident peak load of all Third Party Electric Power Systems resident within the WAPA Sub-Balancing Authority Area that have a contractual obligation to provide Sub-Balancing Authority Contingency Reserves to WAPA.
• The LRS for Redding will be calculated using the equation in this Section, based on data provided by Redding to WAPA, on November 1st of each year to establish Redding’s Annual Peak Load Obligation for the period November 1st of the prior year through October 31st of the current year.

Using Redding’s Annual Peak Load Obligation provided by Redding to WAPA on November 1st, WAPA shall calculate Redding’s updated LRS becoming effective on January 1st each year.

Packet Pg. 213 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit C to
Contract 23-SNR-02969

5. The quantity of Contingency Reserves to be provided by Redding under this Contract in any hour shall be calculated by WAPA:

Redding Contingency Reserve Obligation = (Redding’s LRS) x (Sub-Balancing Authority share of Contingency Reserves)
Where:
• Sub-Balancing Authority (SBA) share of Contingency Reserves = SubBalancing Authority Area share of the Balancing Authority Area Contingency Reserves as calculated by SMUD as the BANC operator.

6. Each Party is responsible for supplying its Frequency Response Reserves, Contingency Reserves and COI Mitigation Reserves. Any Reserves activated due to the occurrence of any event shall be restored by the affected Party in as short a period of time as possible. If Redding self-provides or purchases its LRS of Reserves from a Third Party, WAPA shall periodically test the availability of such Reserves, as set forth in Section 9 hereof.

7. At the end of each hour, WAPA shall compare the actual amount of Reserves carried by Redding to Redding’s Reserve requirement. Redding will be deficient in Reserves if the actual amount of Reserves carried by Redding is less than Redding’s obligation.

8. Penalties imposed by NERC or WECC on the BANC Balancing Authority Area that are assessed by SMUD on the WAPA Sub-Balancing Authority Area for failure to carry required Reserves shall be applied only to the Party(ies) that caused the Reserve deficiency in proportion to which such Party(ies) contributed to the Reserve deficiency.

In the event it cannot be determined who caused the Reserve deficiency such costs shall be borne by the Parties in accordance with their respective LRS calculated pursuant to Section 4 hereof.

9. Activation of Reserves:

9.1 If Redding experiences a loss of resource, Redding shall immediately notify WAPA that they have lost a resource and need assistance. Redding will immediately begin actions to replace the lost resource, communicating with WAPA regularly.

9.2 If WAPA or a Third Party resident within the WAPA Sub-Balancing Authority Area experiences a loss of a resource, WAPA may direct Redding to activate Redding’s total LRS of Reserves or a portion thereof.

Packet Pg. 214 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit C to
Contract 23-SNR-02969

10. Supplying or Receiving Reserve Energy:

10.1 Redding shall be required to activate its LRS of Reserves called upon within ten (10) minutes from the time notified by WAPA. Redding has no obligation to supply more than its LRS of Reserve energy, nor beyond a period of sixty (60) minutes from the time notified by WAPA.

10.2 Settlement for Supplying Reserve Energy will be consistent with current business practice.

11. California-Oregon Intertie Overload Mitigation:

In the operation of the COI, WAPA, as the Sub Balancing Authority Operator, has agreed to curtail schedules, as directed by BANC, and deploy COI Mitigation Energy to alleviate overloading on the COI. The deployment of COI Mitigation Energy is pursuant to WASN Business Practice COI Mitigation Procedure, BP-019. Updates to this BP will be coordinated with all affected parties prior to approval.

11.1 Schedule Curtailments: Redding’s share of the schedule curtailment will be determined in proportion to Redding’s schedules on COI. BANC will direct curtailment of the Sub-Balancing Authority Area’s COI schedules.

11.2 COI Mitigation Energy: Redding’s share of COI Mitigation Energy will be determined by multiplying the SBA’s total mitigation requirement (as determined by BANC) by Redding’s LRS. Redding may self-provide its COI Mitigation Energy with any resource that can provide the required energy within 30 minutes.

12. Penalties imposed by NERC and WECC on the BANC Balancing Authority that are assessed by BANC to WAPA for failure to recover from a disturbance shall be applied only to the Party(ies) that caused such failure.

13. All billings and payments associated with this Exhibit C shall be made in accordance with the Contract.

Packet Pg. 215 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit D to
Contract 23-SNR-02969
1 EXHIBIT D
Maximum Deviation Band Calculation

1. This Exhibit D, to be effective under and as a part of Contract 23-SNR-02969 (Contract), shall become effective upon execution of the Contract; and shall remain in effect until either superseded by another Exhibit D or termination of the Contract.

2. Redding’s Maximum Deviation Band will be determined as follows:

Redding’s Maximum Deviation Band = +/- (0.05LD+5) MW
Where:
• LD = Largest load change in any two consecutive hours during the last calendar year
WAPA and Redding have agreed upon a Maximum Deviation Band, effective upon the effective date of this Contract, of plus or minus 6 MW deviation from Redding’s net scheduled interchange value for each hour. Redding may request a change to this value, but not more often than once every year. If WAPA approves such change, it will become effective upon the first day of a month. A revised Exhibit D will be sent to Redding upon approval and will contain the effective date of such change.

Packet Pg. 216 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric City of Redding
Exhibit E to
Contract 23-SNR-02969
1 EXHIBIT E
Notices

1. This Exhibit E, to be effective under and as a part of Contract 23-SNR-02969 (Contract), shall become effective upon execution of the Contract; and shall remain in effect until either superseded by another Exhibit E or termination of the Contract.

2. The following Mailing Addresses are to be used to provide Notice in accordance with Section 21 of the Contract:

Western Area Power Administration
Vice President and Manager
of Power Operations
For Sierra Nevada Region
114 Parkshore Drive
Folsom, CA 95630-4710
Redding Electric Utility
City of Redding
Electric Utility Director
3611 Avtech Parkway
Redding, CA 96002

3. Each Party to the Contract, by written notice to the authorized representatives of the other Party, shall keep all participants informed of any changes of address, as they occur. These written notices shall take effect and remain in effect until another Exhibit E is drafted.

Packet Pg. 217 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007

WESTERN AREA POWER ADMINISTRATION
GENERAL POWER CONTRACT PROVISIONS Page
I. APPLICABILITY.

1. Applicability ............................................................................................................................................. 1 II. DELIVERY OF SERVICE PROVISIONS.

2. Character of Service...................................................................................................................................... 1

3. Use of Capacity or Energy in Excess of Contract Obligation....................................................................... 1

4. Continuity of Service .................................................................................................................................... 1

5. Multiple Points of Delivery........................................................................................................................... 2

6. Metering........................................................................................................................................................ 2

7. Existence of Transmission Service Contract................................................................................................. 3

8. Conditions of Transmission Service ............................................................................................................. 3

9. Multiple Points of Delivery Involving Direct and Indirect Deliveries.......................................................... 3

10. Construction, Operation, and Maintenance of Contractor’s Power System............................................... 3-4 III.RATES, BILLING, AND PAYMENT PROVISIONS.

11. Change of Rates ............................................................................................................................................ 4

12. Minimum Seasonal or Annual Capacity Charge........................................................................................... 4

13. Billing and Payment................................................................................................................................... 4-5

14. Nonpayment of Bills in Full When Due ....................................................................................................... 5

15. Adjustments for Fractional Billing Period .................................................................................................... 5

16. Adjustments for Curtailments to Firm Service .......................................................................................... 5-6 IV. POWER SALES PROVISIONS.

17. Resale of Firm Electric Service (Wholesale Sales for Resale)...................................................................... 6

18. Distribution Principles .................................................................................................................................. 6

19. Contract Subject to Colorado River Compact............................................................................................... 6 V. FACILITIES PROVISIONS.

20. Design Approval ........................................................................................................................................ 6-7

21. Inspection and Acceptance............................................................................................................................ 7

22. As-Built Drawings ........................................................................................................................................ 7

23. Equipment Ownership Markers .................................................................................................................... 7

24. Third-Party Use of Facilities......................................................................................................................... 7

25. Changes to Western Control Facilities....................................................................................................... 7-8

26. Modification of Western Facilities................................................................................................................ 8

27. Transmission Rights...................................................................................................................................... 8

28. Construction and Safety Procedures .......................................................................................................... 8-9

29. Environmental Compliance........................................................................................................................... 9

30. Responsibility for Regulated Materials......................................................................................................... 9 VI. OTHER PROVISIONS.

31. Authorized Representatives of the Parties .................................................................................................... 9

32. Effect of Section Headings ......................................................................................................................... 10

33. Operating Guidelines and Procedures......................................................................................................... 10

34. Uncontrollable Forces................................................................................................................................. 10

35. Liability....................................................................................................................................................... 10

36. Cooperation of Contracting Parties........................................................................................................ 10-11

37. Transfer of Interest in the Contract or Change in Preference Status........................................................... 11

38. Choice of Law and Forum .......................................................................................................................... 12

39. Waivers ...................................................................................................................................................... 12

40. Notices ........................................................................................................................................................ 12

41. Contingent Upon Appropriations and Authorization .................................................................................. 12

42. Covenant Against Contingent Fees............................................................................................................. 12 * 43. Contract Work Hours and Safety Standards ............................................................................................... 13

44. Equal Opportunity Employment Practices.................................................................................................. 13

45. Use of Convict Labor.................................................................................................................................. 13 *Legal Citation Revised September 1, 2007
Packet Pg. 218 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
1 WESTERN AREA POWER ADMINISTRATION

GENERAL POWER CONTRACT PROVISIONS
I. APPLICABILITY.

1. Applicability.

1.1 These General Power Contract Provisions (Provisions) shall be a part of the contract to which they are attached. In the event these Provisions differ from requirements of the contract, specific terms set forth in the contract shall prevail.

1.2 If the Contractor has member utilities which are either directly or indirectly receiving benefits from the contract, then the Contractor shall require such members to comply with Provisions 10, 17, 18, 19, 29, 30, 36, 43, 44, and 45 of these General Power Contract Provisions.

II. DELIVERY OF SERVICE PROVISIONS.

2. Character of Service.

Electric energy supplied or transmitted under the contract will be three-phase, alternating current, at a nominal frequency of sixty (60) hertz (cycles per second).

3. Use of Capacity or Energy in Excess of Contract Obligation.

The Contractor is not entitled to use Federal power, energy, or capacity in amounts greater than the Western contract delivery obligation in effect for each type of service provided for in the contract except with the approval of Western. Unauthorized overruns of contract delivery obligations shall be subject to charges specified in the contract or the applicable rate schedules. Overruns shall not establish any continuing right thereto and the Contractor shall cease any overruns when requested by Western, or in the case of authorized overruns, when the approval expires, whichever occurs first. Nothing in the contract shall obligate Western to increase any delivery obligation. If additional power, energy, or capacity is not available from Western, the responsibility for securing additional power, energy, or capacity shall rest wholly with the Contractor.

4. Continuity of Service.

Electric service will be supplied or transmitted continuously except for: (1) fluctuations, interruptions, or reductions due to uncontrollable forces, as defined in Provision 34 (Uncontrollable Forces) herein, (2) fluctuations, interruptions, or reductions due to operation of devices installed for power system protection; and (3) temporary fluctuations, interruptions, or reductions, which, in the opinion of the party supplying the service, are necessary or desirable for the purposes of maintenance, repairs, replacements, installation of equipment, or investigation and inspection. The party supplying service, except in case of emergency, will give the party to whom service is being provided reasonable advance notice of such temporary interruptions or reductions and will remove the cause thereof with diligence.

Packet Pg. 219 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
2 5. Multiple Points of Delivery.

When electric service is supplied at or transmitted to two or more points of delivery under the same rate schedule, said rate schedule shall apply separately to the service supplied at or transmitted to each point of delivery; Provided, That where the meter readings are considered separately, and during abnormal conditions, the Contractor’s system is interconnected between points of delivery such that duplication of metered power is possible, the meter readings at each affected point of delivery will be adjusted to compensate for duplication of power demand recorded by meters at alternate points of delivery due to abnormal conditions which are beyond the Contractor’s control or temporary conditions caused by scheduled outages.

6. Metering.

6.1 The total electric power and energy supplied or transmitted under the contract will be measured by metering equipment to be furnished and maintained by Western, a designated representative of Western, or where situations deem it appropriate as determined by Western, by the Contractor or its agent(s). In the event metering equipment is furnished and maintained by the Contractor or its agent(s) and the equipment is used for billing and other accounting purposes by Western, the Contractor shall ensure that the metering equipment complies with applicable metering policies established by Western.

6.2 Meters shall be secured by appropriate security measures and meters shall not be accessed except when the meters are to be inspected, tested, adjusted, or repaired. Representatives of affected parties shall be afforded reasonable opportunity to be present upon such occasions. Metering equipment shall be inspected and tested each year by the party responsible for meter maintenance, unless a different test interval is determined in accordance with good utility practices by an applicable regional metering policy, or as agreed upon by the parties.

Meters shall also be tested at any reasonable time upon request by a party hereto, or by an affected supplemental power supplier, transmission agent, or control area operator. Any metering equipment found to be damaged, defective, or inaccurate shall be repaired and readjusted or replaced by the party responsible for meter maintenance as soon as practicable. Meters found with security breaches shall be tested for tampering and, if appropriate, meter readings shall be adjusted by Western pursuant to Provision 6.3 below.

6.3 Except as otherwise provided in Provision 6.4 hereof, should any meter that is used by Western for billing or other accounting purposes fail to register accurately, the electric power and energy supplied or transmitted during the period of failure to register accurately, shall, for billing purposes, be estimated by Western from the best available information.

6.4 If inspections and tests of a meter used by Western for billing or other accounting purposes disclose an error exceeding 2 percent, or a lesser range in error as agreed upon by the parties, then a correction based upon the inaccuracy found shall be made to the service records for the period of inaccuracy as determined by Western. If the period of inaccuracy cannot be determined, the inaccuracy shall be assumed to have existed during the entire monthly billing period immediately preceding the billing period in which the inspection or test was made and the resulting correction shall be made accordingly.

6.5 Any correction in billing or other accounting information that results from a correction in meter records shall be made in a subsequent monthly bill rendered by Western to the Contractor. Payment of such bill shall constitute full adjustment of any claim between the parties arising out of inaccurate metering equipment.

Packet Pg. 220 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
3 7. Existence of Transmission Service Contract.

If the contract provides for Western to furnish services using the facilities of a third party, the obligation of Western shall be subject to and contingent upon the existence of a transmission service contract granting Western rights to use such facilities. If Western acquires or constructs facilities which would enable it to furnish direct service to the Contractor, Western, at its option, may furnish service over its own facilities.

8. Conditions of Transmission Service.

8.1 When the electric service under the contract is furnished by Western over the facilities of others by virtue of a transmission service arrangement, the power and energy will be furnished at the voltage available and under the conditions which exist from time to time on the transmission system over which the service is supplied.

8.2 Unless otherwise provided in the contract or applicable rate schedule, the Contractor shall maintain a power factor at each point of delivery from Western’s transmission agent as required by the transmission agent.

8.3 Western will endeavor to inform the Contractor from time to time of any changes planned or proposed on the system over which the service is supplied, but the costs of any changes made necessary in the Contractor’s system, because of changes or conditions on the system over which the service is supplied, shall not be a charge against or a liability of Western.

8.4 If the Contractor, because of changes or conditions on the system over which service under the contract is supplied, is required to make changes on its system at its own expense in order to continue receiving service under the contract, then the Contractor may terminate service under the contract upon not less than sixty (60) days written notice given to Western prior to making such changes, but not thereafter.

8.5 If Western notifies the Contractor that electric service provided for under the contract cannot be delivered to the Contractor because of an insufficiency of capacity available to Western in the facilities of others over which service under the contract is supplied, then the Contractor may terminate service under the contract upon not less than sixty (60) days written notice given to Western prior to the date on which said capacity ceases to be available to Western, but not thereafter.

9. Multiple Points of Delivery Involving Direct and Indirect Deliveries.

When Western has provided line and substation capacity under the contract for the purpose of delivering electric service directly to the Contractor at specified direct points of delivery and also has agreed to absorb transmission service allowance or discounts for deliveries of energy over other system(s) to indirect points of delivery and the Contractor shifts any of its load served under the contract from direct delivery to indirect delivery, Western will not absorb the transmission service costs on such shifted load until the unused capacity, as determined solely by Western, available at the direct delivery points affected is fully utilized.

10. Construction, Operation, and Maintenance of Contractor’s Power System.

The Contractor shall, and, if applicable, shall require each of its members or transmission agents to construct, operate, and maintain its power system in a manner which, as determined by Western, will not interfere with the operation of the system of Western or its transmission agents over which electric services are furnished to the Contractor under the contract, and in a manner which will coordinate with the protective relaying and other protective arrangements of the system(s) of Western or Western’s transmission agents. Western may reduce or Packet Pg. 221 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
4 discontinue furnishing services to the Contractor if, after notice by Western, the Contractor fails or refuses to make such changes as may be necessary to eliminate an unsatisfactory condition on the Contractor’s power system which is determined by Western to interfere significantly under current or probable conditions with any service supplied from the power system of Western or from the power system of a transmission agent of Western. Such a reduction or discontinuance of service will not relieve the Contractor of liability for any minimum charges provided for in the contract during the time said services are reduced or discontinued. Nothing in this Provision shall be construed to render Western liable in any manner for any claims, demands, costs, losses, causes of action, damages, or liability of any kind or nature arising out of or resulting from the construction, operation, or maintenance of the Contractor’s power system.

III. RATES, BILLING, AND PAYMENT PROVISIONS.

11. Change of Rates.

Rates applicable under the contract shall be subject to change by Western in accordance with appropriate rate adjustment procedures. If at any time the United States promulgates a rate changing a rate then in effect under the contract, it will promptly notify the Contractor thereof. Rates shall become effective as to the contract as of the effective date of such rate. The Contractor, by written notice to Western within ninety (90) days after the effective date of a rate change, may elect to terminate the service billed by Western under the new rate.

Said termination shall be effective on the last day of the billing period requested by the Contractor not later than two (2) years after the effective date of the new rate. Service provided by Western shall be paid for at the new rate regardless of whether the Contractor exercises the option to terminate service.

12. Minimum Seasonal or Annual Capacity Charge.

When the rate in effect under the contract provides for a minimum seasonal or annual capacity charge, a statement of the minimum capacity charge due, if any, shall be included in the bill rendered for service for the last billing period of the service season or contract year as appropriate, adjusted for increases or decreases in the contract rate of delivery and for the number of billing periods during the year or season in which service is not provided. Where multiple points of delivery are involved and the contract rate of delivery is stated to be a maximum aggregate rate of delivery for all points, in determining the minimum seasonal or annual capacity charge due, if any, the monthly capacity charges at the individual points of delivery shall be added together.

13. Billing and Payment.

13.1 Western will normally issue bills to the Contractor for services furnished during the preceding month within ten (10) days after the end of the billing period.

13.2 If Western is unable to issue timely monthly bill(s), Western may elect to render estimated bill(s). Such estimated bill(s) shall be subject to the same payment provisions as final bill(s), and any applicable adjustments will be shown on a subsequent monthly bill.

13.3 Payments of bills issued by Western are due and payable by the Contractor before the close of business on the twentieth (20th) calendar day after the date of issuance of each bill or the next business day thereafter if said day is a Saturday, Sunday, or Federal holiday. Bills shall be considered paid when payment is received by Western. Bills will be paid electronically or via the Automated Clearing House method of payment unless a written request to make payments by mail is submitted by the Contractor and approved by Western.

Should Western agree to accept payments by mail, these payments will be accepted as timely and without assessment of the charge provided for in Provision 14 (Nonpayment of Bills in Full When Due) if a United States Packet Pg. 222 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
5 Post Office first class mail postmark indicates the payment was mailed at least three (3) calendar days before the due date.

13.4 The parties agree that net billing procedures will be used for payments due Western by the Contractor and for payments due the Contractor by Western for the sale or exchange of electric power and energy, use of transmission facilities, operation and maintenance of electric facilities, and other services. Payments due one party in any month shall be offset against payments due the other party in such month, and the resulting net balance shall be paid to the party in whose favor such balance exists. The parties shall exchange such reports and information that either party requires for billing purposes. Net billing shall not be used for any amounts due which are in dispute.

14. Nonpayment of Bills in Full When Due.

14.1 Bills not paid in full by the Contractor by the due date specified in Provision 13 (Billing and Payment) hereof shall bear a charge of five hundredths percent (0.05%) of the principal sum unpaid for each day payment is delinquent, to be added until the amount due is paid in full. Western will also assess a fee of twentyfive dollars ($25.00) for processing a late payment. Payments received will first be applied to the charges for late payment assessed on the principal and then to payment of the principal.

14.2 Western shall have the right, upon not less than fifteen (15) days advance written notice, to discontinue furnishing the services specified in the contract for nonpayment of bills in full when due, and to refuse to resume such services so long as any part of the amount due remains unpaid. Such a discontinuance of service will not relieve the Contractor of liability for minimum charges during the time service is so discontinued. The rights reserved to Western herein shall be in addition to all other remedies available to Western either by law or in equity, for the breach of any of the terms hereof.

15. Adjustments for Fractional Billing Period.

The demand or capacity charge and minimum charges shall each be proportionately adjusted when fractional billing periods are applicable under this contract. A fractional billing period can occur: 1) at the beginning or end of electric service; 2) at the beginning or end of irrigation pumping service each year; 3) for a fractional billing period under a new rate schedule; or 4) for fractional periods due to withdrawals of electric services. The adjustment will be made based on the ratio of the number of hours that electric service is available to the Contractor in such fractional billing period, to the total number of hours in the billing period involved.

Energy billing shall not be affected by fractional billing periods.

16. Adjustments for Curtailments to Firm Service.

16.1 Billing adjustments will be made if firm electric service is interrupted or reduced because of conditions on the power system of the United States for periods of one (1) hour or longer in duration each. Billing adjustments will not be made when such curtailment of electric service is due to a request by the Contractor or a discontinuance of electric service by Western pursuant to Provision 14 (Nonpayment of Bills In Full When Due).

For purposes of billing adjustments under this Provision, the term power system of the United States shall include transmission facilities used under contract but not owned by the United States.

16.2 The total number of hours of curtailed firm electric service in any billing period shall be determined by adding: (1) the sum of the number of hours of interrupted electric service to (2) the product, of each reduction, of: the number of hours reduced electric service and the percentage by which electric service was reduced below the delivery obligation of Western at the time of each said reduction of electric service. The demand or capacity charge and applicable minimum charges shall each be proportionately adjusted in the ratio that Packet Pg. 223 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
6 the total number of hours of electric service determined to have been curtailed bears to the total number of hours in the billing period involved.

16.3 The Contractor shall make written claim within thirty (30) days after receiving the monthly bill, for adjustment on account of any curtailment of firm electric service, for periods of one (1) hour or longer in duration each, alleged to have occurred that is not reflected in said bill. Failure to make such written claim, within said thirty-day (30-day) period, shall constitute a waiver of said claim. All curtailments of electric service, which are due to conditions on the power system of the United States, shall be subject to the terms of this Provision; Provided, That withdrawal of power and energy under the contract shall not be considered a curtailment of electric service.

IV. POWER SALES PROVISIONS.

17. Resale of Firm Electric Service (Wholesale Sales for Resale).

The Contractor shall not sell any firm electric power or energy supplied under the contract to any electric utility customer of the Contractor for resale by that utility customer; Provided, That the Contractor may sell the electric power and energy supplied under the contract to its members on condition that said members not sell any of said power and energy to any customer of the member for resale by that customer.

18. Distribution Principles.

The Contractor agrees that the benefits of firm electric power or energy supplied under the contract shall be made available to its consumers at rates that are established at the lowest possible level consistent with sound business principles, and that these rates will be established in an open and public manner. The Contractor further agrees that it will identify the costs of firm electric power or energy supplied under the contract and power from other sources to its consumers upon request. The Contractor will demonstrate compliance with the requirements of this Provision to Western upon request.

19. Contract Subject to Colorado River Compact.

Where the energy sold under the contract is generated from waters of the Colorado River system, the contract is made upon the express condition and with the express covenant that all rights under the contract shall be subject to and controlled by the Colorado River Compact approved by Section 13 (a) of the Boulder Canyon Project Act of December 21, 1928, 43 U.S.C. §§ 617a-e, and the parties to the contract shall observe and be subject to and controlled by said Colorado River Compact in the construction, management, and operation of the dams, reservoirs, and powerplants from which electrical energy is to be furnished by Western to the Contractor under the contract, and in the storage, diversion, delivery, and use of water for the generation of electrical energy to be delivered by Western to the Contractor under the contract.

V. FACILITIES PROVISIONS.

20. Design Approval.

All facilities, construction, and installation by the Contractor pursuant to the contract shall be subject to the approval of Western. Facilities interconnections shall normally conform to Western’s current “General Requirements for Interconnection,” in effect upon the signing of the contract document providing for each interconnection, copies of which are available from Western. At least ninety (90) days, unless otherwise agreed, Packet Pg. 224 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
7 prior to the date the Contractor proposes to commence construction or to incur an obligation to purchase facilities to be installed pursuant to the contract, whichever date is the earlier, the Contractor shall submit, for the approval of Western, detailed designs, drawings, and specifications of the facilities the Contractor proposes to purchase, construct, and install. The Contractor assumes all risks for construction commenced or obligations to purchase facilities incurred prior to receipt of approval from Western. Western review and approval of designs and construction work in no way implies that Western is certifying that the designs meet the Contractor’s needs.

21. Inspection and Acceptance.

Western shall have the right to inspect the materials and work furnished by the Contractor, its agents, employees, and subcontractors pursuant to the contract. Such inspections shall be at reasonable times at the work site. Any materials or work that Western determines is defective or not in accordance with designs, drawings, and specifications, as approved by Western, shall be replaced or modified, as directed by Western, at the sole expense of the Contractor before the new facilities are energized.

22. As-Built Drawings.

Within a reasonable time, as determined by Western, after the completion of construction and installation of facilities pursuant to the contract, the Contractor shall submit to Western marked as-built prints of all Western drawings affected by changes made pursuant to the contract and reproducible drawings the Contractor has prepared showing facilities of Western. The Contractor’s drawings of Western facilities shall use drawing title blocks, drawing numbers, and shall be prepared in accordance with drafting standards all as approved by Western.

Western may prepare, revise, or complete said drawings and bill the Contractor if the Contractor fails to provide such drawings to Western within a reasonable time as determined by Western.

23. Equipment Ownership Markers.

23.1 The Contractor shall identify all movable equipment and, to the extent agreed upon by the parties, all other salvageable facilities constructed or installed on the United States right-of-way or in Western substations pursuant to the contract which are owned by the Contractor, by permanently affixing thereto suitable markers clearly identifying the Contractor as the owner of said equipment and facilities.

23.2 If requested by the Contractor, Western shall identify all movable equipment and, to the extent agreed upon by the parties, all other salvageable facilities constructed or installed on the Contractor’s right-of-way or in the Contractor’s substations pursuant to the contract which are owned by the United States, by permanently affixing thereto suitable markers clearly identifying the United States as the owner of said equipment and facilities.

24. Third-Party Use of Facilities.

The Contractor shall notify Western of any proposed system change relating to the facilities governed by the contract or allowing third-party use of the facilities governed by the contract. If Western notifies the Contractor that said system change will, as solely determined by Western, adversely affect the operation of Western’s system the Contractor shall, at no cost to Western, provide a solution to said adverse effect acceptable to Western.

25. Changes to Western Control Facilities.

If at any time during the term of the contract, Western determines that changes or additions to control, relay, or communications facilities are necessary to maintain the reliability or control of Western’s transmission Packet Pg. 225 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
8 system, and said changes or additions are entirely or partially required because of the Contractor’s equipment installed under the contract, such changes or additions shall, after consultation with the Contractor, be made by Western with all costs or a proportionate share of all costs, as determined by Western, to the be paid by the Contractor. Western shall notify the Contractor in writing of the necessary changes or additions and the estimated costs to be paid by the Contractor. If the Contractor fails to pay its share of said estimated costs, Western shall have the right, after giving sixty (60) days’ written notice to the Contractor, to terminate the applicable facility installation provisions to the contract and require the removal of the Contractor’s facilities.

26. Modification of Western Facilities.

Western reserves the right, at any time, to modify its facilities. Western shall keep the Contractor informed of all planned modifications to Western facilities which impact the facilities installation pursuant to the contract. Western shall permit the Contractor to change or modify its facilities, in a manner satisfactory to and at no cost or expense to Western, to retain the facilities interconnection pursuant to the contract. At the Contractor’s option, Western shall cooperate with the Contractor in planning alternate arrangements for service which shall be implemented at no cost or expense to Western. The Contractor and Western shall modify the contract, as necessary, to conform to the new facilities arrangements.

27. Transmission Rights.

If the contract involves an installation which sectionalizes a Western transmission line, the Contractor hereby agrees to provide a transmission path to Western across such sectionalizing facilities at no cost or expense to Western. Said transmission path shall be at least equal, in terms of capacity and reliability, to the path in the Western transmission line prior to the installation pursuant to the contract.

28. Construction and Safety Procedures.

28.1 The Contractor hereby acknowledges that it is aware of the hazards inherent in high-voltage electric lines and substations, and hereby assumes full responsibility at all times for the adoption and use of necessary safety measures required to prevent accidental harm to personnel engaged in the construction, inspection, testing, operation, maintenance, replacement, or removal activities of the Contractor pursuant to the contract. The Contractor and the authorized employees, agents, and subcontractors of the Contractor shall comply with all applicable safety laws and building and construction codes, including the provisions of Chapter 1 of the Power System Operations Manual, entitled Power System Switching Procedure, and the Occupational Safety and Health Administration regulations, Title 29 C.F.R. §§ 1910 and 1926, as amended or supplemented. In addition to the safety program required herein, upon request of the United States, the Contractor shall provide sufficient information to demonstrate that the Contractor’s safety program is satisfactory to the United States.

28.2 The Contractor and its authorized employees, agents, and subcontractors shall familiarize themselves with the location and character of all the transmission facilities of Western and interconnections of others relating to the work performed by the Contractor under the contract. Prior to starting any construction, installation, or removal work, the Contractor shall submit a plan of procedure to Western which shall indicate the sequence and method of performing the work in a safe manner. No work shall be performed by the Contractor, its employees, agents, or subcontractors until written authorization to proceed is obtained from Western.

28.3 At all times when the Contractor, its employees, agents, or subcontractors are performing activities of any type pursuant to the contract, such activities shall be under supervision of a qualified employee, agent, or subcontractor of the Contractor who shall be authorized to represent the Contractor in all matters pertaining to the activity being performed. The Contractor and Western will keep each other informed of the names of their designated representatives at the site.

Packet Pg. 226 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
9 28.4 Upon completion of its work, the Contractor shall remove from the vicinity of the right-ofway of the United States all buildings, rubbish, used materials, concrete forms, and other like material belonging to the Contractor or used under the Contractor’s direction, and in the event of failure to do so the same may be removed by Western at the expense of the Contractor.

28.5 In the event the Contractor, its employees, agents, or subcontractors fail to comply with any requirement of this Provision, or Provision 21 (Inspection and Acceptance) herein, Western or an authorized representative may issue an order to stop all or any part of the work until such time as the Contractor demonstrates compliance with the provision at issue. The Contractor, its employees, agents, or subcontractors shall make no claim for compensation or damages resulting from such work stoppage.

29. Environmental Compliance.

Facilities installed under the contract by any party shall be constructed, operated, maintained, replaced, transported, and removed subject to compliance with all applicable laws, including but not limited to the National Historic Preservation Act of 1966, 16 U.S.C. §§ 470x-6, the National Environmental Policy Act of 1969, 42 U.S.C. §§ 4321-4347, the Endangered Species Act of 1973, 16 U.S.C. §§ 1531-1544, and the Archaeological Resources Protection Act of 1979, 16 U.S.C. §§ 470aa-470mm, and the regulations and executive orders implementing these laws, as they may be amended or supplemented, as well as any other existing or subsequent applicable laws, regulations, and executive orders.

30. Responsibility for Regulated Materials.

When either party owns equipment containing regulated material located on the other party’s substation, switchyard, right-of-way, or other property, the equipment owner shall be responsible for all activities related to regulated materials in such equipment that are necessary to meet the requirements of the Toxic Substances Control Act, 15 U.S.C. §§ 2601-2692, the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901-6992k, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§ 9601-9675, the Oil Pollution Act of 1990, 33 U.S.C. §§ 2702-2761, the Clean Water Act, 33 U.S.C. §§ 1251-1387, the Safe Drinking Water Act, 42 U.S.C. §§ 300f-j26, and the regulations and executive orders implementing these laws, as they may be amended or supplemented, and any other existing or subsequent applicable laws, regulations, and executive orders. Each party shall label its equipment containing regulated material in accordance with appropriate laws and regulations. If the party owning the equipment does not perform activities required under appropriate laws and regulations within the time frame specified therein, the other party may perform or cause to be performed the required activities after notice to and at the sole expense of the party owning the equipment.

VI. OTHER PROVISIONS.

31. Authorized Representatives of the Parties.

Each party to the contract, by written notice to the other, shall designate the representative(s) who is (are) authorized to act in its behalf with respect to those matters contained in the contract which are the functions and responsibilities of the authorized representatives of the parties. Each party may change the designation of its authorized representative(s) upon oral notice given to the other, confirmed promptly by written notice.

Packet Pg. 227 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
10 32. Effect of Section Headings.

Section headings or Provision titles appearing in the contract or these General Power Contract Provisions are inserted for convenience only and shall not be construed as interpretations of text.

33. Operating Guidelines and Procedures.

The parties to the contract may agree upon and put into effect from time to time, such other written guidelines and procedures as may be required in order to establish the methods of operation of the power system to be followed in the performance of the contract.

34. Uncontrollable Forces.

Neither party to the contract shall be considered to be in default in performance of any of its obligations under the contract, except to make payment as specified in Provision 13 (Billing and Payment) herein, when a failure of performance shall be due to an uncontrollable force. The term “uncontrollable force” means any cause beyond the control of the party affected, including but not restricted to, failure of or threat of failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, restraint by court order or public authority and action or nonaction by, or failure to obtain the necessary authorizations or approvals from, any governmental agency or authority, which by exercise of due diligence such party could not reasonably have been expected to avoid and which by exercise of due diligence it shall be unable to overcome. Nothing contained herein shall be construed to require a party to settle any strike or labor dispute in which it may be involved. Either party rendered unable to fulfill any of its obligations under the contract by reason of an uncontrollable force shall give prompt written notice of such fact to the other party and shall exercise due diligence to remove such inability with all reasonable dispatch.

35. Liability.

35.1 The Contractor hereby agrees to indemnify and hold harmless the United States, its employees, agents, or contractors from any loss or damage and from any liability on account of personal injury, death, or property damage, or claims for personal injury, death, or property damage of any nature whatsoever and by whomsoever made arising out of the Contractors’, its employees’, agents’, or subcontractors’ construction, operation, maintenance, or replacement activities under the contract.

35.2 The United States is liable only for negligence on the part of its officers and employees in accordance with the Federal Tort Claims Act, 28 U.S.C. §§ 1346(b), 1346(c), 2401(b), 2402, 2671, 2672, 2674- 2680, as amended or supplemented.

36. Cooperation of Contracting Parties.

If, in the operation and maintenance of their respective power systems or electrical equipment and the utilization thereof for the purposes of the contract, it becomes necessary by reason of any emergency or extraordinary condition for either party to request the other to furnish personnel, materials, tools, and equipment for the accomplishment thereof, the party so requested shall cooperate with the other and render such assistance as the party so requested may determine to be available. The party making such request, upon receipt of properly itemized bills from the other party, shall reimburse the party rendering such assistance for all costs properly and reasonably incurred by it in such performance, including administrative and general expenses, such costs to be determined on the basis of current charges or rates used in its own operations by the party rendering assistance.

Issuance and payment of bills for services provided by Western shall be in accordance with Provisions 13 (Billing Packet Pg. 228 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
11 and Payment) and 14 (Nonpayment of Bills in Full When Due) herein. Western shall pay bills issued by the Contractor for services provided as soon as the necessary vouchers can be prepared which shall normally be within twenty (20) days.

37. Transfer of Interest in Contract or Change in Preference Status.

37.1 No voluntary transfer of the contract or of the rights of the Contractor under the contract shall be made without the prior written approval of the Administrator of Western. Any voluntary transfer of the contract or of the rights of the Contractor under the contract made without the prior written approval of the Administrator of Western may result in the termination of the contract; Provided, That the written approval of the Administrator shall not be unreasonably withheld; Provided further, That if the Contractor operates a project financed in whole or in part by the Rural Utilities Service, the Contractor may transfer or assign its interest in the contract to the Rural Utilities Service or any other department or agency of the Federal Government without such prior written approval; Provided further, That any successor to or assignee of the rights of the Contractor, whether by voluntary transfer, judicial sale, foreclosure sale, or otherwise, shall be subject to all the provisions and conditions of the contract to the same extent as though such successor or assignee were the original Contractor under the contract; and, Provided further, That the execution of a mortgage or trust deed, or judicial or foreclosure sales made thereunder, shall not be deemed voluntary transfers within the meaning of this Provision.

37.2 The Contractor shall maintain its status as an entity eligible for preference in Western’s sale of Federal power pursuant to Reclamation law, as amended and supplemented.

37.3 Western shall give the Contractor written notice of Western’s proposed determination that the Contractor has violated Provision 37.1 and Western’s proposed action in response to the violation.

37.4 The Contractor shall have 120 days after receipt of Western’s notice provided under Provision 37.3 to submit a written response to Western. The Contractor may also make an oral presentation to the Administrator during this 120-day period.

37.5 At any time during this process, the Contractor and Western may agree upon corrective action to resolve Western’s proposed determination that the Contractor is in violation of Provision 37.1.

37.6 Within 30 days of receipt of the Contractor’s written response provided under Provision 37.4, Western will notify the Contractor in writing of its final decision. The Administrator’s written notice will include the intended action, the effective date thereof, and the reasons for taking the intended action. Implementation of the Administrator’s action shall take place no earlier than 60 days from the Contractor’s receipt of such notice.

37.7 Any successor to Western shall be subject to all the provisions and conditions of the contract to the same extent as though such successor were an original signatory to the contract.

37.8 Nothing in this Provision shall preclude any right to judicial review available to the Contractor under Federal law.

Packet Pg. 229 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
12 38. Choice of Law and Forum.

Federal law shall control the obligations and procedures established by this contract and the performance and enforcement thereof. The forum for litigation arising from this contract shall exclusively be a Federal court of the United States, unless the parties agree to pursue alternative dispute resolution.

39. Waivers.

Any waivers at any time by either party to the contract of its rights with respect to a default or any other matter arising under or in connection with the contract shall not be deemed a waiver with respect to any subsequent default or matter.

40. Notices.

Any notice, demand, or request specifically required by the contract or these Provisions to be in writing shall be considered properly given when delivered in person or sent by postage prepaid registered or certified mail, commercial delivery service, facsimile, electronic, prepaid telegram, or by other means with prior agreement of the parties, to each party’s authorized representative at the principal offices of the party. The designation of the person to be notified may be changed at any time by similar notice. Where facsimile or electronic means are utilized for any communication covered by this Provision, the sending party shall keep a contemporaneous record of such communications and shall verify receipt by the other party.

41. Contingent Upon Appropriations and Authorization.

41.1 Where activities provided for in the contract extend beyond the current fiscal year, continued expenditures by the United States are contingent upon Congress making the necessary appropriations required for the continued performance of the United States’ obligations under the contract. In case such appropriation is not made, the Contractor hereby releases the United States from its contractual obligations and from all liability due to the failure of Congress to make such appropriation.

41.2 In order to receive and expend funds advanced from the Contractor necessary for the continued performance of the obligations of the United States under the contract, additional authorization may be required. In case such authorization is not received, the Contractor hereby releases the United States from those contractual obligations and from all liability due to the lack of such authorization.

42. Covenant Against Contingent Fees.

The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure the contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, Western shall have the right to annul the contract without liability or in its discretion to deduct from the contract price or consideration the full amount of such commission, percentage, brokerage, or contingent fee.

Packet Pg. 230 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Effective September 1, 2007
13 43. Contract Work Hours and Safety Standards.

The contract, to the extent that it is of a character specified in Section 103 of the Contract Work Hours and Safety Standards Act (Act), 40 U.S.C. § 3701, as amended or supplemented, is subject to the provisions of the Act, 40 U.S.C. §§ 3701-3708, as amended or supplemented, and to regulations promulgated by the Secretary of Labor pursuant to the Act.

44. Equal Opportunity Employment Practices.

Section 202 of Executive Order No. 11246, 30 Fed. Reg. 12319 (1965), as amended by Executive Order No. 12086, 43 Fed. Reg. 46501 (1978), as amended or supplemented, which provides, among other things, that the Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin, is incorporated herein by reference the same as if the specific language had been written into the contract, except that Indian Tribes and tribal organizations may apply Indian preference to the extent permitted by Federal law.

45. Use of Convict Labor.

The Contractor agrees not to employ any person undergoing sentence of imprisonment in performing the contract except as provided by 18 U.S.C. § 3622(c), as amended or supplemented, and Executive Order No. 11755, 39 Fed. Reg. 779 (1973), as amended or supplemented.

Packet Pg. 231 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Rate Schedule CV-RFS4
(Supersedes Schedule CV-RFS3)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

CENTRAL VALLEY PROJECT

SCHEDULE OF RATE FOR REGULATION AND FREQUENCY RESPONSE SERVICE Effective:

October 1, 2011, through September 30, 2019. [Note: This rate schedule was extended by Rate Order No. WAPA-185 through September 30, 2024.]
Available:

Within the marketing area served by the Western Area Power Administration (Western), Sierra Nevada Customer Service Region.

Applicable:

To customers receiving Regulation and Frequency Response Service (regulation).

Character and Conditions of Service:

Regulation is necessary to provide for the continuous balancing of resources and interchange with load and for maintaining scheduled interconnection frequency at 60-cycles per second.

Formula Rate:

The formula rate for regulation includes three components:

Component 1:

Annual Revenue Requirement Annual Regulating Capacity (Kilowatt(kW)) The annual revenue requirement includes: (1) the Central Valley Project generation costs associated with providing regulation, and (2) the non-facility costs allocated to regulation.

Packet Pg. 232 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric The annual regulating capacity is one-half of the total regulating capacity bandwidths provided by Western under the Interconnected Operations Agreements with Sub-Balancing Authority (SBA) members.

The penalty for non-performance by an SBA customer who has committed to self-provision for their regulating capacity requirement will be the greater of 150 percent of Western’s actual costs or 150 percent of the market price.

Western will revise the formula rate resulting from Component 1 based on either of the following two conditions: (1) updated financial data available in March of each year; or (2) a change in the numerator or denominator that results in a rate change of at least $0.25 per kW month.

Component 2:

Any charges or credits associated with the creation, termination, or modification to any tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.

The FERC’s or other regulatory bodies’ accepted or approved charges or credits apply to the service to which this rate methodology applies. When possible, Western will pass through directly to the relevant customer FERC’s or other regulatory bodies’ accepted or approved charges or credits in the same manner Western is charged or credited. If FERC’s or other regulatory bodies’ accepted or approved charges or credits cannot be passed through directly to the relevant customer in the same manner Western is charged or credited, the charges or credits will be passed through using Component 1 of the formula rate.

Component 3:

Any charges or credits from the Host Balancing Authority (HBA) applied to Western for Packet Pg. 233 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric providing this service will be passed through directly to the relevant customer in the same manner Western is charged or credited to the extent possible. If the HBA’s costs or credits cannot be passed through to the relevant customer in the same manner Western is charged or credited, the charges or credits will be passed through using Component 1 of the formula rate.

Billing:

The formula rate above will be applied to the regulating capacity bandwidth contained in the service agreement. Billing will occur monthly.

Adjustment for Audit Adjustments:

Financial audit adjustments that apply to the formula rate under this rate schedule will be evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash flow management.

Packet Pg. 234 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Rate Schedule CV-EID5
(Supersedes Schedule CV-EID4)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

CENTRAL VALLEY PROJECT

SCHEDULE OF RATE FOR ENERGY IMBALANCE SERVICE
Effective:

The first day of the first full billing period after March 25, 2021, through December 31, 2024.

Available:

Within the marketing area served by the Western Area Power Administration (WAPA), Sierra Nevada Customer Service Region (SN).

Applicable:

To customers receiving Energy Imbalance (EI) Service.

Character and Conditions of Service:

EI Service is provided when a difference occurs between the scheduled and the actual delivery of energy to a load within the Sub-Balancing Authority (SBA) over an hour or in accordance with approved policies and procedures. The deviation, in megawatts, is the net scheduled amount of energy minus the net metered (actual delivered) amount.

EI Service uses the deviation bandwidth that is established in the service agreement or Interconnected Operations Agreements.

Formula Rate:

The formula rate for EI Service includes three components:

Component 1:

Packet Pg. 235 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric EI Service is applied to deviations as follows unless otherwise dictated by contract or policy: (1) deviations within the bandwidth will be tracked and settled financially, at the greater of the California Independent System Operator (CAISO) market price, or WAPA-SN’s actual cost; (2) negative deviations (under-delivery), outside the deviation bandwidth, will be charged the greater of 150-percent of the CAISO market price or 150-percent of WAPA-SN’s actual cost; and (3) positive deviations (over-delivery), outside the deviation bandwidth, will be lost to the system, except for any hour when WAPA-SN incurs a cost to dispose of the energy, in which event the responsible party will bear that cost.

Deviations that occur as a result of actions taken to support reliability will be resolved in accordance with existing contractual requirements. Such actions include reserve activations or uncontrolled event responses as directed by the responsible reliability authority such as SBA, Host Balancing Authority (HBA), Reliability Coordinator, or Transmission Operator.

Component 2:

Any charges or credits associated with the creation, termination, or modification to any tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.

FERC’s or other regulatory bodies’ accepted or approved charges or credits apply to the service to which this rate methodology applies. When possible, WAPA-SN will pass through directly to the relevant customer FERC’s or other regulatory bodies’ accepted or approved charges or credits in the same manner WAPA-SN is charged or credited. If FERC’s or other regulatory bodies’ accepted or approved charges or credits cannot be passed through directly to the relevant customer in the same manner WAPA-SN is charged or credited, the charges or credits will be passed through using Component 1 of the formula rate.

Packet Pg. 236 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Component 3:

Any charges or credits from the HBA applied to WAPA-SN for providing this service will be passed through directly to the relevant customer in the same manner WAPA-SN is charged or credited to the extent possible. If the HBA’s charges or credits cannot be passed through to the relevant customer in the same manner WAPA-SN is charged or credited, the charges or credits will be passed through using Component 1 of the formula rate.

Billing:

Billing for negative deviations outside the bandwidth, or as otherwise required, will occur monthly.

Adjustment for Audit Adjustments:

Financial audit adjustments that apply to the formula rate under this rate schedule will be evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash flow management.

Packet Pg. 237 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Rate Schedule CV-GID2
(Supersedes Schedule CV-GID1)

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

CENTRAL VALLEY PROJECT

SCHEDULE OF RATE FOR GENERATOR IMBALANCE SERVICE
Effective:

The first day of the first full billing period after March 25, 2021, through December 31, 2024.

Available:

Within the marketing area served by the Western Area Power Administration (WAPA), Sierra Nevada Customer Service Region (SN).

Applicable:

To generators receiving Generator Imbalance (GI) Service.

Character and Conditions of Service:

GI Service is provided when a difference occurs between the scheduled and actual delivery of energy from an eligible generation resource within the Sub-Balancing Authority (SBA), over an hour, or in accordance with approved policies. The deviation in megawatts is the net scheduled amount of generation minus the net metered output from the generator’s (actual generation) amount.

GI Service is subject to the deviation bandwidth established in the service agreement or Interconnected Operations Agreements.

Formula Rate:

The formula rate for the GI Service has three components:

Packet Pg. 238 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Component 1:

GI Service is applied to deviations as follows unless otherwise dictated by contract or policy: (1) deviations within the bandwidth will be tracked and settled financially at the greater of the California Independent System Operator (CAISO) market price or WAPA-SN’s actual cost; (2) negative deviations (under-delivery), outside the deviation bandwidth, will be charged the greater of 150-percent of the CAISO market price or 150-percent of WAPA-SN’s actual cost; and (3) positive deviations (over-delivery), outside the deviation bandwidth, will be lost to the system, except for any hour when WAPA-SN incurs a cost to dispose of the energy, in which event the responsible party will bear that cost.

Deviations that occur as a result of actions taken to support reliability will be resolved in accordance with existing contractual requirements. Such actions include reserve activations or uncontrolled event responses as directed by the responsible reliability authority such as SBA, Host Balancing Authority (HBA), Reliability Coordinator, or Transmission Operator.

To the extent that an entity incorporates intermittent resources, deviations will be charged as follows unless otherwise dictated by contract or policy: (1) deviations within the bandwidth will be tracked and settled financially at the greater of the CAISO market price or WAPA-SN’s actual cost; (2) negative deviations (under-delivery), outside the deviation bandwidth, will be charged the greater of market price or actual cost (no penalty); and (3) positive deviations (over-delivery), outside the deviation bandwidth, will be lost to the system, except for any hour where WAPA-SN incurs a cost, then that cost will be borne by the responsible party.

Intermittent generators serving load outside of WAPA-SN's SBA will be required to dynamically schedule or dynamically meter their generation to another Balancing Authority.

An intermittent resource, for the limited purpose of these rate schedules, is an electric generator Packet Pg. 239 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric that is not dispatchable and cannot store its output, and therefore, cannot respond to changes in demand or respond to transmission security constraints.

Component 2:

Any charges or credits associated with the creation, termination, or modification to any tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.

FERC’s or other regulatory bodies’ accepted or approved charges or credits apply to the service to which this rate methodology applies. When possible, WAPA-SN will pass through directly to the relevant customer FERC’s or other regulatory bodies’ accepted or approved charges or credits in the same manner WAPA-SN is charged or credited. If FERC’s or other regulatory bodies’ accepted or approved charges or credits cannot be passed through directly to the relevant customer in the same manner WAPA-SN is charged or credited, the charges or credits will be passed through using Component 1 of the formula rate.

Component 3:

Any charges or credits from the HBA applied to WAPA-SN for providing this service will be passed through directly to the relevant customer in the same manner WAPA-SN is charged or credited to the extent possible. If the HBA’s charges or credits cannot be passed through to the relevant customer in the same manner WAPA-SN is charged or credited, the charges or credits will be passed through using Component 1 of the formula rate.

Billing:

Billing for negative deviations outside the bandwidth will occur monthly.

Adjustment for Audit Adjustments:

Financial audit adjustments that apply to the formula rate under this rate schedule will be Packet Pg. 240 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash flow management.

Packet Pg. 241 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Rate Schedule CV-EIM4S

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

CENTRAL VALLEY PROJECT

SCHEDULE OF RATE FOR ENERGY IMBALANCE MARKET

ENERGY IMBALANCE SERVICE
Effective:

March 25, 2021, through December 31, 2024.

Available:

Within the marketing area served by the Western Area Power Administration (WAPA), Sierra Nevada Customer Service Region (SN).

Applicable:

This rate applies to WAPA-SN customers receiving Energy Imbalance (EI) Service when WAPA-SN, as Transmission Provider, is participating in Energy Imbalance Market (EIM) and when EIM has not been suspended. To the extent WAPA-SN incurs EIM EI Service-related charges from the EIM Entity during periods of market suspension or contingency, this schedule will also apply to ensure that WAPA-SN, as Transmission Provider, remains-revenue neutral for its participation in EIM.

Character and Conditions of Service:

EI Service is provided when a difference occurs between the scheduled and the actual delivery of energy to a load located within the WAPA-SN Sub-Balancing Authority Area (Sub-BAA). WAPA-SN offers this service when transmission service is used to serve load within the WAPA-SN Sub-BAA.

Packet Pg. 242 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Unless subsequently imposed by California Independent System Operator (CAISO) as the Market Operator (MO) as part of the MO Tariff and promulgated by WAPA through rate proceedings, there shall be no incremental transmission charge assessed for transmission use related to the EIM. Transmission Customers must have transmission service rights, as set forth in Attachment S of WAPA’s Tariff.

Formula Rate:

The formula rate for EI Service includes three components:

Component 1:

EI Service is the deviation of the Transmission Customer’s metered load compared to the load component of the Transmission Customer Base Schedule settled as Uninstructed Imbalance Energy (UIE) for the period of the deviation at the applicable Load Aggregation Point (LAP) price where the load is located.

Unless such charges are allocated to the Transmission Customer directly by Balancing Authority of Northern California (BANC) as the EIM Entity, a Transmission Customer will be responsible for any pass-through charges and/or credits associated with applicable EI Service charges allocated to WAPA-SN, as Transmission Provider, for its participation in the EIM, in accordance with this rate schedule. WAPA-SN will sub-allocate load charges based on a Transmission Customer’s load ratio share.

Component 2:

Any charges or credits associated with the creation, termination, or modification to any tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.

FERC’s or other regulatory bodies’ accepted or approved charges or credits apply to the service Packet Pg. 243 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric to which this rate methodology applies. When possible, WAPA-SN will pass through directly to the relevant customer FERC’s or other regulatory bodies’ accepted or approved charges or credits in the same manner WAPA-SN is charged or credited. If FERC’s or other regulatory bodies’ accepted or approved charges or credits cannot be passed through directly to the relevant customer in the same manner WAPA-SN is charged or credited, the charges or credits will be passed through using Component 1 of the formula rate.

Component 3:

Any charges or credits from the Host Balancing Authority (HBA) applied to WAPA-SN for providing this service will be passed through directly to the relevant customer in the same manner WAPA-SN is charged or credited to the extent possible. If the HBA’s charges or credits cannot be passed through to the relevant customer in the same manner WAPA-SN is charged or credited, the charges or credits will be passed through using Component 1 of the formula rate.

Billing:

Billing will occur monthly.

Adjustment for Audit Adjustments:

Financial audit adjustments that apply to the formula rate under this rate schedule will be evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash flow management.

Packet Pg. 244 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Rate Schedule CV-EIM9S

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

CENTRAL VALLEY PROJECT

SCHEDULE OF RATE FOR ENERGY IMBALANCE MARKET

GENERATOR IMBALANCE SERVICE
Effective:

March 25, 2021, through December 31, 2024.

Available:

Within the marketing area served by the Western Area Power Administration (WAPA), Sierra Nevada Customer Service Region (SN).

Applicable:

This rate applies to WAPA-SN customers receiving Generator Imbalance (GI) Service when WAPA-SN, as Transmission Provider, is participating in Energy Imbalance Market (EIM) and when EIM has not been suspended. To the extent WAPA-SN incurs EIM GI Service-related charges from the EIM Entity during periods of market suspension or contingency, this schedule will also apply to ensure WAPA-SN, as Transmission Provider, remains revenue-neutral for its participation in EIM.

Character and Conditions of Service:

GI Service is provided when a difference occurs between the output of EIM Non-Participating Resource located in the WAPA-SN Sub-Balancing Authority (Sub-BAA), as reflected in the resource component of the Transmission Customer Base Schedule, and the delivery schedule from that generator to (1) another BAA, (2) the Balancing Authority of Northern California (BANC) BAA, or (3) a load within the WAPA-SN Sub-BAA.

Packet Pg. 245 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Unless subsequently imposed by California Independent System Operator (CAISO) as the Market Operator (MO) as part of the MO Tariff and promulgated by WAPA through rate proceedings, there shall be no incremental transmission charge assessed for transmission use related to the EIM. Transmission Customers must have transmission service rights, as set forth in Attachment S of WAPA’s Tariff.

Formula Rate:

The formula rate for GI Service includes three components:

Component 1:

Unless such charges are allocated to the Transmission Customer directly by BANC as the EIM Entity, a Transmission Customer shall be responsible for any pass-through charges and/or credits associated with applicable GI Service charges allocated to WAPA-SN, as Transmission Provider, for its participation in EIM, in accordance with this rate schedule. Such charges will be included due to operational adjustments of any affected Interchange. WAPA-SN will directly assign charges and/or sub-allocate charges based on the Transmission Customer’s load ratio share.

Component 2:

Any charges or credits associated with the creation, termination, or modification to any tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.

FERC’s or other regulatory bodies’ accepted or approved charges or credits apply to the service to which this rate methodology applies. When possible, WAPA-SN will pass through directly to the relevant customer FERC’s or other regulatory bodies’ accepted or approved charges or credits in the same manner WAPA-SN is charged or credited. If FERC’s or other regulatory Packet Pg. 246 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric bodies’ accepted or approved charges or credits cannot be passed through directly to the relevant customer in the same manner WAPA-SN is charged or credited, the charges or credits will be passed through using Component 1 of the formula rate.

Component 3:

Any charges or credits from the Host Balancing Authority (HBA) applied to WAPA-SN for providing this service will be passed through directly to the relevant customer in the same manner WAPA-SN is charged or credited to the extent possible. If the HBA’s charges or credits cannot be passed through to the relevant customer in the same manner WAPA-SN is charged or credited, the charges or credits will be passed through using Component 1 of the formula rate.

Billing:

Billing will occur monthly.

Adjustment for Audit Adjustments:

Financial audit adjustments that apply to the formula rate under this rate schedule will be evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash flow management.

Packet Pg. 247 Attachment: Western Contract 23-SNR-02969 Interconnected Operations Agreement (4.5(b)--Approve Contract No. 23-SNR-02969 - Electric

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution approving and adopting the 36th Amendment to City Budget Resolution No. 2023-060 appropriating $210,000 to upgrade the security fencing surrounding the City of Redding Electric Utility/Pacific Gas & Electric gas intertie.

Fiscal Impact
Upgrading the security fencing for the Redding Electric Utility’s (REU) Pacific Gas and Electric Company (PG&E) natural gas pipeline intertie was not planned in the Fiscal Year 2023-2025 Biennial Budget. However, staff determined additional security measures are needed. REU has adequate reserves to fund the necessary installation of this capital improvement.

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

Description Estimated Cost
Design, Engineering, & Labor $145,000
Materials $45,000
Contingency $20,000
TOTAL $210,000
Alternative Action
The City Council could choose not to adopt the resolution appropriating the funds as requested and provide alternative direction to staff.

MEETING DATE: March 19, 2024
ITEM NO. 4.5(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(c)--Adopt Budget Resolution for Security Fencing for Natural Gas Pipeline Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 248
Report to Redding City Council March 11, 2024
Re: 4.5(c)--Adopt Budget Resolution for Security Fencing for Natural Gas Pipeline Page 2 Background/Analysis
The PG&E/REU natural gas pipeline interconnection is approximately 3 miles east of the Redding Power Plant on the corner of Eastside and Waverly Road. This property is City-owned and is surrounded by a gated, privacy screen chain link fence topped with barbed wire. The perimeter of the enclosure is approximately 210 linear feet. Within the enclosure is above-ground natural gas piping and critical equipment belonging to both PG&E and REU.

Protecting access to this area is critical to the Redding Power Plant's reliability. The enclosure fencing requires replacement because of age and a desire for increased security and protection around the natural gas infrastructure.

Environmental Review
This action, budget resolution and appropriation of funds, is not a project as defined by the California Environmental Quality Act (CEQA). The fencing project will be subject to a separate CEQA review prior to award of the project.

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

Attachments
^Resolution
Packet Pg. 249
Resolution No. 2024 - ____________

A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 36TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2023-060
APPROPRIATING $210,000 FOR UPGRADING SECURITY FENCING
SURROUNDING REU/PG&E GAS INTERTIE FOR FISCAL YEAR 2023-24.

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 8091 REU – Capital $210,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:

USE SOURCE

OF FUNDS OF FUNDS
Decrease (Increase) Fund Balance
211-8091-2910000-00000 Fund Balance $ 210,000
Increase Expenditures
211-8091-7200006-00000 Fencing, Signage, Etc. $ 210,000 Total $ 210,000 $ 210,000
THAT the purpose is to appropriate $210,000 for upgrading security fencing surrounding REU/PG&E gas intertie for fiscal year 2023-24.

I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the ______day of __________, 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 CHRISTIAN M. CURTIS, City Attorney Packet Pg. 250 Attachment: ^Resolution (4.5(c)--Adopt Budget Resolution for Security Fencing for Natural Gas Pipeline)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Request for Qualifications No. 5425, Providing Refurbished Distribution Transformers, for the City of Redding Electric Utility, aimed at addressing the shortage of distribution transformers, in conjunction with allocated funds from the budget:
(1) Approve awarding Request for Qualifications No. 5425 to General Pacific, Inc. and Emerald Transformers for combined purchases not-to-exceed $500,000 per contract year through February 28, 2025; and
(2) Subject to satisfactory performance by the vendors and availability of funds, authorize the Purchasing Officer to extend the contract for four additional one-year periods through February 28, 2029.

Fiscal Impact
The purchase of transformers was included in the City of Redding Electric Utility’s (REU) General System Improvements Fiscal Year 2023-25 Biennial Budget and the Aging Infrastructure Replacement Project for Electric Utility Line Construction Services. In the fiveyear plan presented to the City Council (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 Council could choose not to authorize the recommended actions relative to Request for Qualifications No. 5425 and provide alternative direction to staff.

MEETING DATE: March 19, 2024
ITEM NO. 4.5(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(d)--Award of Request for Qualifications 5425 - Providing Refurbished Distribution Transformers
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 251
Report to Redding City Council March 8, 2024
Re: 4.5(d)--Award of Request for Qualifications No.5425 -Providing Refurbished Distribution Transformers Page 2
Background/Analysis
City staff have 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.

With Council’s support, staff had taken various measures to diversify our supply of distribution transformers. On December 19, 2023, the City awarded Bid Scheduled 5409 to Emerald Transformers to refurbish REU transformers removed from service. Refurbishing transformers is a cost effective and timely option that has not historically been utilized by REU. On December 19, 2023 Council authorized the City Manager to ratify the purchase of three surplus transformers from Emerald Transformers. These three large transformers were critically needed for existing customer work orders, and this was the only viable method of procurement. On January 16, 2024, Council awarded Bid Schedule 5427 for Padmount Distribution to Hyundai Corporation, which is the first time REU has purchased transformers from an international supplier.

In yet another effort to diversify the supply of transformers, staff issued a Request for Qualifications (RFQ) No. 5425 for vendors that offer refurbished transformers for sale. This option will enable the City to purchase small quantities of refurbished overhead and pad mounted distribution transformers as they are offered to the market by the qualified vendors. This procurement method provides another option for sourcing transformers that has not previously been utilized by the City. The City directly solicited eight vendors known to engage in this type of service, and the RFQ was also advertised in the local newspaper and the City's website.

On Friday, January 12, 2024, the City received proposals from two firms, General Pacific, Inc and Emerald Transformer. Subject-matter experts within REU reviewed the Statement of Qualifications submitted by both firms; the vendors demonstrated the experience and qualifications necessary to provide the City with refurbished distribution transformers.

Establishing a refurbished transformer vendor list does not guarantee that a transformer will be purchased for any project but will be purchased based on REU's need to ensure minimum inventory levels and as vendor inventory meets REU transformer specifications.

Granting approval for staff to purchase refurbished transformers from approved vendors will allow staff to act more quickly than allowed by the traditional public bidding process. The standard procedure is not fast enough to acquire transformers promptly as they become available, leading to missed opportunities due to purchases by other utilities. This permission will enable REU to directly purchase transformers on an as-needed basis from General Pacific, Inc., and Emerald Transformer. This approach aligns with our commitment to providing a reliable power supply to our growing city and supporting its ongoing development.

Packet Pg. 252
Report to Redding City Council March 8, 2024
Re: 4.5(d)--Award of Request for Qualifications No.5425 -Providing Refurbished Distribution Transformers Page 3
Environmental Review
This action does not fall under the scope of the California Environmental Quality Act, and no further environmental assessment is required.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Packet Pg. 253

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the submission of an application for the Outdoor Recreation Legacy Partnership Program for $4 million to begin construction of Panorama Park located at 950 Lake Boulevard.

Fiscal Impact
With the existing Statewide Park Program (SPP) grant, the City of Redding’s (City) Park Development Fund allocation, and the California Department of Food and Agriculture grant, the project has a $19.25 million budget which is inadequate to fund the total estimated budget of $24 million.

The Outdoor Recreation Legacy Partnership (ORLP) Program grant application will request up to $4 million to add to the existing construction budget, which will make the project nearly fullyfunded, so that construction of Panorama Park may begin. The ORLP Program requires a 50 percent match, which will be sourced from the City’s existing $8.5 million Statewide Park Program grant and park development funds.

Alternative Action
The City Council could decline to apply for the ORLP grant funds, or provide staff with alternate direction.

Background/Analysis
The Panorama Park and Resiliency Center (Project) features a 10.5-acre community park with a 22,000-square-foot community center. The project also includes a sports field, playground, dog park, landscaping and parking. Due to the grant award ceilings and inflationary factors since the original SPP application submittal in 2020, the current construction budget is inadequate.

MEETING DATE: March 19, 2024
ITEM NO. 4.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.6(a)--Authorize Submission of the Outdoor Recreation Legacy Partnership Grant Application for Panorama Park in the City of Redding.

Travis Menne, Director of
Community Services
Packet Pg. 254
Report to Redding City Council March 11, 2024
Re: 4.6(a)--Approve Grant Application for Panorama Park Page 2 To address the budget deficiency, the Community Services Department is seeking additional funding through the ORLP program. 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 Panorama remains an outdoor recreation use area into perpetuity through a conservation easement recorded on the property.

ORLP includes two competitive processes. California’s Department of Parks and Recreation reviews applications, selects finalists, and then forwards the finalists to the NPS for a nationwide review. Applications are due April 2, 2024, and the estimated award date is November 1, 2024.

Nationally, approximately $224.1 million is available for the program. The application will request up to $4 million to construct various outdoor recreation features in the park. The grant will partially fund portions of the existing project scope, namely the play structure, park lighting, landscaping, sports field, parking, walking paths, the dog park, disc golf practice areas, outdoor plaza spaces. In addition, the grant will add a skate plaza and field lighting to the project scope.

Environmental Review
On June 22, 2021, the Planning Commission adopted the Mitigated Negative Declaration and the Mitigation Monitoring Programs and approved the Panorama Park Project, thereby satisfying the requirements of the California Environmental Quality Act Guidelines §15074. At this meeting, the Planning Commission also approved Site Development Permit SDP-2021-00785, General Plan Amendment GPA-2021-0786, and Rezoning Application RZ-2021-0787. No further actions are required at this time.

Council Priority/City Manager Goals
• 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
Previous Staff Report - October 6, 2020, Item 4.6(b) Grant Application Previous Staff Report - September 5, 2023, Item 4.6(a) Grant Application Previous Staff Report - February 6, 2024, Item 4.6(a) Grant Acceptance, 1st Amend.

Packet Pg. 255

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution approving the City of Redding as an applicant for the California Statewide Park Development and Community Revitalization Program grant administered by the California Department of Parks and Recreation; and authorize the City Manager, or designee, to execute all documents necessary to apply for the grant, appropriate funds should the grant be awarded, and execute any agreements necessary to implement the project.

Fiscal Impact
The grant application will request up to the maximum of $8.5 million to construct Panorama Park and Field House (gymnasium). Staff is required to complete the California Environmental Quality Act (CEQA) documentation and filing fees concurrent with the application. This is anticipated to cost $20,000 which can be funded out of an existing allocation in the parks development fund. The grant guidelines require a match for construction of indoor facilities.

Based on current project cost estimates a $1.5 million (15percent of total project) match will be required to complete the project. Funding from the Parks Development Fund will be utilized for the studies, fees, and match funding.

If awarded the grant, the new park and facility will require new funding for operations and maintenance. Staff estimates the early years to be close to $200,000 annually and grow to $300,000 over time as the facilities wear and require more repairs and maintenance. If approved, the ongoing operations and maintenance funding will need to be budgeted beginning in Fiscal Year 2023-2024. This cost would be a general fund expense with some offset from facility rental income.

Alternative Action
The City Council (Council) could decline to apply for the funds under this grant opportunity or provide staff with alternative direction.

MEETING DATE: October 6, 2020
ITEM NO. 4.6(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.6(b)--Adopt Resolution for California Statewide Park Program Application Kim Niemer, Community
Services Director
Packet Pg. 256 Attachment: Previous Staff Report - October 6, 2020, Item 4.6(b) Grant Application (4.6(a)--Approve Grant Application for Panorama Park) Report to Redding City Council September 29, 2020
Re: 4.6(b)--Resolution California Statewide Park Program Application Page 2 Background/Analysis
Following the passage of Proposition 68, the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018, the Statewide Park Development and Community Revitalization Grant Program allotted approximately $650 million to create, expand, and renovate parks and recreational opportunities in underserved communities. In 2019, the City of Redding (City) applied for round three of the program and received $6.7 million for the Caldwell Park Expansion project, becoming one of only 62 California communities to receive such funds. The highly competitive program received 478 applications totaling $2.3 billion in funding requests.

In July 2020, California State Parks announced round four of the program, and a total allotment of $395.3 million for park construction, improvement or expansion. To capitalize on the funding source, staff is beginning preparations for project planning and the public engagement process to submit an eligible application. Using the 2018-2021 Action Plan and the Parks, Trails, and Open Space Master Plan as a framework for selecting potential projects, staff analyzed the program guidelines alongside available park properties. The analysis determined that the 10.53-acre Panorama Park site, located at 950 Lake Blvd, demonstrated both the highest need in the community and proved to be the highest scoring park site currently in the City’s ownership. The City acquired these 10 undeveloped acres in 2006 for park purposes. In 2008, new park planning stalled as the recession hit.

The State’s Community Fact Finder tool shows that the area is considered “deficient” of park space, meaning there are no nearby parks for area residents. Additionally, the area’s median income is below the program’s low-income threshold of 80 percent of the statewide average, and is therefore considered a Severely Disadvantaged Community by those standards. The guidelines and scoring rubric for the grant favor low-income and park deficient areas, and staff believes the park site is the strongest candidate possible, more so than the already awarded Caldwell Park area was in 2019.

For the grant, the staff will propose the construction of a new large neighborhood park and recreation facility known as the Panorama Field House. The project will include park amenities such as trails, landscaping, playground, parking and more. The Field House is conceptually planned to be approximately 20,000 square feet of gym space (enough to accommodate two basketball courts) and 5,000 square feet of classroom, restroom, storage, and reception space.

This project will address the service area gap in the northwest quadrant, and address the critical lack of gymnasium space outlined in the Parks, Trails, and Open Space Master Plan. Providing recreational opportunities for the residents of the Lake Boulevard area will provide future jobs and economic investment into one of Redding’s Severely Disadvantaged Communities, as calculated by the California State Parks Community Fact Finder.

Adequate recreational gymnasium space is one of the longstanding recreational needs within the community. The City of Redding does not currently own a gym, which is atypical for a community of its size. Historically, school facilities and joint-use agreements allowed for some City programming of gym space and reduced the need for the City to operate its own facility.

Even with these partnerships, in 2004 the City’s Parks, Trails, and Open Space Master Plan highlighted the need for two additional gyms, and an additional two needed by 2020. Existing school functions, scheduling conflicts, limited availability, closed campuses and sheer capacity issues have diminished the City’s ability to rely on other facilities. When the City does have Packet Pg. 257 Attachment: Previous Staff Report - October 6, 2020, Item 4.6(b) Grant Application (4.6(a)--Approve Grant Application for Panorama Park) Report to Redding City Council September 29, 2020
Re: 4.6(b)--Resolution California Statewide Park Program Application Page 3 access to gyms, the school retains first priority and scheduling conflicts are a common occurrence, thus creating consistency issues for participants and staff. Furthermore, the current restrictions surrounding the COVID-19 pandemic have halted any shared use and no gymnasiums are available for City recreational programming.

At nearly 600 kids, participation in the City’s youth basketball program last year hit an all-time high. In fact, Redding Recreation turned 60 kids away due to lack of gym availability, which equates to about 10 percent of total participants. Providing a gymnasium with at least two basketball courts will address roughly 50 percent of the current identified need within the City. If funded, a City-owned facility would also be used for youth and adult volleyball leagues, adult basketball, Grasshopper sports, summer camps and much more. Staff anticipates generating rental revenue from AAU basketball teams, tournaments, and other uses as gym space in Redding is at a premium. The facility will also include classroom space for exercise and special interest classes.

As this is a new facility, there is no internal capacity to absorb the maintenance and operating costs. The grant will not fund ongoing maintenance, nor fund a project without a long term maintenance plan. Limited development opportunity makes the prospect of a new landscape maintenance district (LMD) in the area unlikely, and there are no existing LMD’s in the area into which the park could potentially be absorbed with district member approval. For these reasons, maintenance funding for the park would have to be appropriated internally. It is anticipated that construction of the facility would begin in 2023. Operations and maintenance funding would need to be budgeted for Fiscal Year 2023-2024.

As previously stated, the Lake Boulevard area has limited future development opportunities and is unlikely to generate much in terms of park in-lieu fees. Though, the nearby Kennett Court development, a recently approved affordable housing development, is currently under construction with approximately 160+ new multifamily units expected in the next few years. The project will generate park development funds that could be used for match, in addition to strong trends in park development fees throughout the City. These new residences are in addition to the 1,650 residents currently living within the park service area (0.5 mile of the site).

At its September 9, 2020, meeting, the Community Services Advisory Commission unanimously recommended that the Council approve the filing of the grant application. The application is due December 14, 2020, and involves extensive community input as required by the grant program.

During the public engagement process, it is typical for residents to bring new ideas and concepts to the table that will best fit the community’s needs. The process requires at least five public meetings to establish park needs and begin to develop the basic park feature selection and conceptual placement. Staff has experience with this framework, having followed the same guidelines during the planning phase for the Caldwell Park Expansion project. The process will conform to current COVID-19 health guidelines. Potential meeting strategies include online meetings, live and interactive broadcasts, socially distanced or independent site walks, and online polling. The state is issuing guidance on public engagement and staff will incorporate those strategies while meeting local guidelines to provide the best outcome for the current circumstances.

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 Packet Pg. 258 Attachment: Previous Staff Report - October 6, 2020, Item 4.6(b) Grant Application (4.6(a)--Approve Grant Application for Panorama Park) Report to Redding City Council September 29, 2020
Re: 4.6(b)--Resolution California Statewide Park Program Application Page 4 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
Resolution
Panorama Park Site Map
Panorama Field House Concept
Panorama Park Service Area
Packet Pg. 259 Attachment: Previous Staff Report - October 6, 2020, Item 4.6(b) Grant Application (4.6(a)--Approve Grant Application for Panorama Park) RESOLUTION NO 2020-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

APPROVING THE APPLICATION FOR STATEWIDE PARK

DEVELOPMENT AND COMMUNITY REVITALIZATION PROGRAM

GRANT FUNDS
WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility by the Legislature of the State of California for the administration of the Statewide Park Development and Community Revitalization Grant Program, setting up necessary procedures governing the application; and
WHEREAS, said procedures established by the State Department of Parks and Recreation require the Applicant to certify by resolution the approval of the application before submission of said application to the State; and
WHEREAS, successful Applicants will enter into a contract with the State of California to complete the Grant Scope project;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Redding hereby approves the filing of an application for the Panorama Park Project; and

1. Certifies that said Applicant has or will have available, prior to commencement of any work on the project included in this application, the sufficient funds to complete the project if the grant is awarded; and

2. Certifies that if the project is awarded, the Applicant has or will have sufficient funds to operate and maintain the project; and

3. Certifies that the Applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide; and

4. Delegates the authority to the City Manager to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Grant Scope; and

5. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines; and

6. Will consider promoting inclusion per Public Resources Code §80001(b)(8 A-G).

Packet Pg. 260 Attachment: Previous Staff Report - October 6, 2020, Item 4.6(b) Grant Application (4.6(a)--Approve Grant Application for Panorama Park) I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the Redding City Council on the 6th day of October, 2020, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
__________________________________
ADAM McELVAIN, Mayor
ATTEST: FORM APPROVED:
______________________________ ___________________________________ PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
Packet Pg. 261 Attachment: Previous Staff Report - October 6, 2020, Item 4.6(b) Grant Application (4.6(a)--Approve Grant Application for Panorama Park)

JULY WAY

LAKE FOREST DR

TAMARACK DR ST NICHOLAS AVE

SHERMAN WAY

AUGUST WAY

MIDDLE ST

VALLI CT

GOODVIEW WAY

POINSETTA AVE

LITTLE ST

LAKE BLVD

SANTA ROSA WAY
MTG. DATE:

ITEM:

ATTACHMENT:

INFORMATION TECHNOLOGY DEPARTMENT

GIS DIVISION SITE MAP
DATE PRODUCED: - 0 200 400Feet
AUGUST 4, 2020 PANORAMA PARK SITE
900 & 950 LAKE BLVD
AP# 113-120-011 & -012
P:\Parks\ProProjects\PanoramaParkSite.aprx

10.53 acres
Rocky Point
Charter School
Packet Pg. 262 Attachment: Previous Staff Report - October 6, 2020, Item 4.6(b) Grant Application (4.6(a)--Approve Grant Application for Panorama Park) Park Service Areas
City of Redding
P:\Parks\MapDocuments\Parks_PopulationAnalysis.mxd
Airport Rd
Old Oregon Trl
Oasis Rd
Lake Blvd
Shasta V ei w Dr
Hilltop Dr
Hartnell Ave
V ci tor Ave
Old Al turas Rd
Placer St
Clear Creek Rd
Bechelli Ln
Quartz Hill Rd
Canyon Rd
Eureka Way
Churn Creek Rd
Keswi ck Dam Rd
Rancho Rd
S Bonnyview Rd
E Cypress Ave
Court St Railroad Ave
Placer Rd
Canby Rd
Cypress Ave
Hawley Rd
South St
Churn Creek Rd
Lake Blvd
Churn Creek Rd
Hartnell Ave
Old Oregon Trl
Pine St
Airport Rd
Churn Creek Rd
N Market St
Hilltop Dr
S Market St
Parkview Ave
Park Marina Dr
Girvan Rd
Buenaventura Blvd
I
0 1 2 Print Date: August 4, 2020
Miles
Public Park
Other City-Owned Property
Park Service Area (Within 0.5 Miles)
City Limit
Panorama Park Site
Packet Pg. 263 Attachment: Previous Staff Report - October 6, 2020, Item 4.6(b) Grant Application (4.6(a)--Approve Grant Application for Panorama Park)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to California Strategic Growth Council’s Community Resilience Centers Program:
(1) Adopt Resolution authorizing the City of Redding Parks Department to apply for $10 million to the California Strategic Growth Council’s Community Resilience Centers Program grant for the Panorama Park and Resiliency Center; and (2) Authorize the City Manager, or designee, to execute all documents necessary to apply for the grant, appropriate funds should the grant be awarded, and execute any agreements necessary to implement the project.

Fiscal Impact
The grant application will request the program’s maximum of $10 million to construct Panorama Park and Community Center. The grant does not require a match. However, the City of Redding (City) has secured $8.5 million from the Statewide Park Program and will contribute $1.5 million from the Park Development Fund. If awarded, the expansion of the project and associated programming will not create an impact on the General Fund.

On October 6, 2020, the City Council (Council) considered future maintenance and staffing costs. The grant funds would allow for more features to be constructed as construction costs have been escalating. The emergency services functions will rely on existing programs and operations by the City and its partners during disasters or other emergencies. The grant program operates on a reimbursement basis, and the City will need to cashflow the project until reimbursement requests are made.

Alternative Action
The Council could decline to apply for these grant funds or provide staff with alternative direction.

MEETING DATE: September 5, 2023
ITEM NO. 4.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.6(a)--Authorize Grant Application for Community Resilience Centers Program for Panorama Park
Kim Niemer, Community
Services Director
Packet Pg. 110 Packet Pg. 264 Attachment: Previous Staff Report - September 5, 2023, Item 4.6(a) Grant Application (4.6(a)--Approve Grant Application for Panorama Park) Report to Redding City Council August 28, 2023
Re: 4.6(a)--Authorize Grant Application for Community Resilience Centers Program for Panorama Park Page 2
Background/Analysis
The Panorama Park and Resiliency Center (Project) features a 10.5-acre community park with a 20,000-square-foot community center. The project also includes a sports field, landscaping, a playground, a dog park, and parking. With the existing Statewide Park Program (SPP) grant and the City’s Park Development Fund allocation, the project has a $10 million budget. Due to the SPP grant award ceiling ($8.5 million) and inflationary factors since the application submittal in 2020, the current construction budget is inadequate. To address the budget deficiency, the Community Services Department is seeking opportunities for additional funding by expanding the role of the community center. The community center would serve a dual purpose as a Community Resilience Center (CRC), allowing it to function during natural disasters, extreme heat events, and other emergency or climate-related instances. The location of the Project and proximity to multiple agencies and a school campus across the street align well with needs of a CRC.

Staff seeks to leverage existing project funding to obtain $10 million from the California Strategic Growth Council’s (SGC) CRC program. The additional building functions required by the grant would require a slight expansion and redesign of the facility. The result will be a slightly larger facility and better functionality during emergencies. Additional grant-funded infrastructure may include solar and backup power, a kitchen, water storage, shower facilities, and broadband. Programming and partnerships will assist with identifying other community needs for response to wildfires, floods, and other emergencies or climate events. As seen in the Carr Fire, emergency events can be dynamic, widespread and require multiple options and plans for resiliency centers. A successful CRC grant application will allow the construction of a purpose-built facility in the City’s northwest quadrant, thereby increasing the geographic distribution and availability of emergency shelter infrastructure.

The CRC program will fund neighborhood-level resilience centers to provide shelter and resources during climate and other emergencies and year-round services and programming that strengthen community connections and the ability to withstand disasters. The 2021-2022 State of California Climate Budget Package allocated $100 million to SGC for the new CRC program.

The application for Round 1 of this program is due September 18, 2023. If awarded, staff must amend the current design contract with NJA Architects to expand the project’s scope and design the additional square footage in the building.

Environmental Review
On June 22, 2021, the Planning Commission adopted the Mitigated Negative Declaration and the Mitigation Monitoring Programs and approved the Panorama Park Project, thereby satisfying the requirements of the California Environmental Quality Act Guidelines §15074. At this meeting, the Planning Commission also approved Site Development Permit SDP-2021-00785, General Plan Amendment GPA-2021-0786, and Rezoning Application RZ-2021-0787. No further actions are required at this time.

Packet Pg. 111 Packet Pg. 265 Attachment: Previous Staff Report - September 5, 2023, Item 4.6(a) Grant Application (4.6(a)--Approve Grant Application for Panorama Park) Report to Redding City Council August 28, 2023
Re: 4.6(a)--Authorize Grant Application for Community Resilience Centers Program for Panorama Park Page 3
Council Priority/City Manager Goals
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and 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
^Resolution
Previous Staff Report - October 6, 2020, Item 4.6(b) Grant Application Packet Pg. 112 Packet Pg. 266 Attachment: Previous Staff Report - September 5, 2023, Item 4.6(a) Grant Application (4.6(a)--Approve Grant Application for Panorama Park) RESOLUTION NO. 2023-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

APPROVING THE APPLICATION FOR COMMUNITY RESILIENCE

CENTERS PROGRAM GRANT FUNDS
WHEREAS, the California Strategic Growth Council (SGC) received a $110 million General Fund appropriation in Fiscal Year (FY) 2022-2023 to implement the Community Resilience Centers (CRC) program through the provision of grants, staff support, and third-party technical assistance. Of the total funds, $98.6 million is available for Round 1 grants; and WHEREAS, the SGC’s CRC program will fund the planning, development, and construction of neighborhood-level community resilience centers to provide shelter and resources during climate and other emergencies, such as extreme heat events and poor air quality days. The program will also fund ongoing, year-round community services and programs, such as food distribution and workforce development training, that build overall community resilience; and WHEREAS, SGC will prioritize community-serving locations across the state, such as schools, libraries, community centers, health clinics, and places of worship. SGC’s CRC program will fund planning, pre-development, and implementation activities; and WHEREAS, the City is eligible to apply for and administer CRC program funds for the construction of Panorama Park & Resiliency Center; and
WHEREAS, if awarded, the Applicant agrees to use the CRC funds only for Eligible Activities approved by SGC and in accordance with all Program requirements, Program Guidelines, other rules and laws, as well as in a manner consistent and in compliance with its application and other contracts between the Applicant and SGC; and
WHEREAS, procedures established by the SGC in the Round 1 Final Program Guidelines issued April 26, 2023 require the Applicant to certify by resolution the approval of the application before submission of said application to the State;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Redding hereby approves the filing of an application for the Panorama Park & Resiliency Center Project in the amount of $10 million, and:

1. Certifies that said Applicant has or will have available, prior to commencement of any work on the project included in this application, sufficient funds to complete the project if the grant is awarded;

2. Certifies that if the project is awarded, the Applicant has or will have sufficient funds to operate and maintain the project; and
Packet Pg. 113 Attachment: ^Resolution (4.6(a)--Authorize Grant Application for Community Resilience Centers Program for Panorama Park)Packet Pg. 267 Attachment: Previous Staff Report - September 5, 2023, Item 4.6(a) Grant Application (4.6(a)--Approve Grant Application for Panorama Park)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to the City of Redding Panorama Park Project:
(1) Accept the California Department of Food and Agriculture Community Resilience Centers Program grant in the amount of $9.25 million;
(2) Authorize the City Manager, or designee, to execute the First Amendment to the Contract (C-9544) with NJ Associates, Inc., DBA NJA Architecture and NJA for a revised total amount not to exceed $1,089,200;
(3) Authorize the City Manager, or designee, to approve any amendments up to $108,920; and
(4) Adopt Resolution approving and adopting the 27th Amendment to Budget Resolution No. 2023-060 appropriating $9,250,000 in state grant funds and $1,500,000 in City of Redding Parks Development funds for the project.

Fiscal Impact
The California Department of Food and Agriculture (CDFA) Community Resilience Centers (CRC) Program grant application requested the program’s maximum of $10 million to construct the community center at Panorama Park - the City of Redding (City) was awarded $9.25 million.

The grant does not require a match. However, the City of Redding (City) secured $8.5 million from the Statewide Park Program and will contribute $1.5 million from the Park Development Fund. The grant funds will supplement the existing project budget for a combined total of $19.25 million.

The CRC Program grant operates on a reimbursement basis, the City’s general fund will front the reimbursements. As staff works through the design process and the project development timeline is fully understood, a quarterly reimbursement schedule will be developed and brought back to City Council (Council) at a future date.

MEETING DATE: February 6, 2024
ITEM NO. 4.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.6(a)--Accept the grant, approve the First Amendment to the contract, and adopt a Budget Resolution for the Community Resilience Center Program at Panorama Park.

Travis Menne, Director of
Community Services
Packet Pg. 268 Attachment: Previous Staff Report - February 6, 2024, Item 4.6(a) Grant Acceptance, 1st Amend. (4.6(a)--Approve Grant Application for Report to Redding City Council January 31, 2024
Re: 4.6(a)--Grant for Community Resilience Center Program at Panorama Park Page 2 The grant scope includes additional building features and square footage, which allows the building to provide emergency services functions for the public. To complete this portion of the project, staff needs to amend the current design contract with NJA Architects to expand the project’s scope and design to meet the additional grant requirements for the building at an additional cost of $149,800 which is covered by the grant budget.

The emergency services functions of the building will rely on existing programs and operations by the City and its partners during emergencies and other Community Resiliency Center (CRC) activation events and will not require any additional operations funding. On October 6, 2020, the Council considered future maintenance and staffing costs. Anticipated maintenance costs will be explored as part of the City’s unmet needs workshop in March 2024.

Alternative Action
The Council could decline to accept the grant funds and amend the contract, or provide staff with alternative direction.

Background/Analysis
The Panorama Park Project features a 10.5-acre community park with an approximately 22,100- square-foot community center. The project includes park amenities such as trails, landscaping, a playground, a dog park, shade structure, parking, and more. With the existing Statewide Park Program (SPP) grant and Park Development Fund commitment, the project has a $10 million budget. Due to the SPP grant award ceiling ($8.5 million) and inflationary factors since the application submittal in 2020, the current construction budget is inadequate. To address the deficiency in construction costs, the Community Services Department identified a strategy to seek opportunities for additional funding by expanding the role of the community center. With this funding, the community center would serve a dual purpose as a CRC, allowing it to function during natural disasters, extreme heat events, and other emergency or climate-related instances.

Staff leveraged existing project funding and momentum to apply for and obtain the CRC Program grant. For this grant program, the CDFA Fairs and Expositions Branch issued a onetime general fund allocation of $150 million for fairground and community resilience centers. Of that allocation, $38 million was awarded to five community centers throughout the state.

Redding and Oakland received the highest awards at $9.25 million each.

The award will elevate the design of the community center by adding additional elements and capacity for both sustainability and emergency operations. New project CRC infrastructure elements include solar and backup power, an emergency evacuation center with a community kitchen, shower facilities, and broadband. As seen in the Carr Fire, emergency events can be dynamic, widespread and require multiple options and plans for emergency centers and services.

Constructing a purpose-built facility in the City’s northwest quadrant will increase the geographic distribution and availability of emergency shelter infrastructure.

To complete the project, staff needs to amend the current design contract with NJA Architects to expand the project’s scope and design to meet the additional grant requirements for the building.

Packet Pg. 269 Attachment: Previous Staff Report - February 6, 2024, Item 4.6(a) Grant Acceptance, 1st Amend. (4.6(a)--Approve Grant Application for Report to Redding City Council January 31, 2024
Re: 4.6(a)--Grant for Community Resilience Center Program at Panorama Park Page 3 Environmental Review
On June 22, 2021, the Planning Commission (Commission) adopted the Mitigated Negative Declaration and the Mitigation Monitoring Programs and approved the Panorama Park Project, thereby satisfying the requirements of the California Environmental Quality Act Guidelines §15074 (CEQA). At this meeting, the Commission also approved Site Development Permit SDP2021-00785, General Plan Amendment GPA-2021-0786, and Rezoning Application RZ-2021- 0787. No further actions are required at this time.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
^Resolution
First Amendment to Consulting & Professional Services Contract (C-9544) Previous Staff Report - October 6, 2020, Item 4.6 (b) Grant Application Previous Staff Report - February 15, 2023, Item 4.6(b) Grant Application C-9544_NJA Architecture_Executed
CDFA Grant Contract
Packet Pg. 270 Attachment: Previous Staff Report - February 6, 2024, Item 4.6(a) Grant Acceptance, 1st Amend. (4.6(a)--Approve Grant Application for

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve and authorize the following for the Enterprise Anderson Groundwater Sustainability Agency:
(1) Approve the use of Water Utility Funds to provide initial funding and receive reimbursement including interest from Department of Water Resources and Enterprise Anderson Groundwater Sustainability Agency member agencies; (2) Accept Sustainable Groundwater Management Act Implementation grant funds; (3) Adopt Resolution approving the 35th Amendment to City of Redding Budget Resolution No. 2023-060 appropriating $2,383,700 in funds; and
(4) Find this activity statutorily exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15262 – Feasibility and Planning Studies.

Fiscal Impact
There is no direct cost associated with the adoption of a budget resolution appropriating grant funding for the Enterprise Anderson Groundwater Sustainability Agency (EAGSA). The Sustainable Groundwater Management Act (SGMA) Implementation Grant (Grant) award is in the amount of $2,383,700. The Finance Department has set up a separate fund to manage the EAGSA finances accordingly.

All administrative costs are included in this round of the SGMA Grant funding. The grant funds are received on a reimbursement basis. The City of Redding (City) will submit quarterly invoices to the Department of Water Resources (DWR) and it is estimated that reimbursement will be received within two to four months. Because the grant is allocated on a reimbursement basis, the City’s Water Utility will provide initial funding and receive reimbursement from DWR. The EAGSA member agencies will reimburse interest at the City’s pooled cash rate for the time between expenditure and reimbursement.

MEETING DATE: March 19, 2024
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(a)--Adopt Budget Resolution Appropriating Funds for the Enterprise Anderson Groundwater Sustainability Agency.

Michael Webb, Public Works
Director
Packet Pg. 271
Report to Redding City Council March 12, 2024
Re: 4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds Page 2 Alternative Action
The City Council (Council) may choose not to adopt the budget resolution appropriating the DWR grant funding award for the EAGSA. This would cause each member agency to have to contribute one sixth of the costs to implement the requirements set forth by DWR under the SGMA. The EAGSA Memorandum of Understanding includes equal cost sharing amongst all partners at a rate of 16.7 percent of the agency related costs.

The Council may choose not to adopt the budget resolution appropriating grant funding for the EAGSA and provide alternative direction to staff. The total cost of not adopting the budget resolution would be $397,283 to the Water Utility.

Background/Analysis
In September 2014, Governor Brown signed a three-bill package known as the SGMA. The intent of the act is to provide a framework for sustainable, local groundwater management. The act requires that groundwater basins in California that have been identified by the DWR as either medium or high priority basins to be managed by a Groundwater Sustainability Plan (GSP). The act allows these basins to be managed locally by local agencies that sit on these basins by forming one or multiple Groundwater Sustainability Agencies (GSAs). The Enterprise and Anderson Subbasins of the Redding Area Groundwater Basin have been identified by DWR as medium priority basins and, therefore are subject to the SGMA and related GSA and GSP requirements.

The overlying members of the Redding Area Groundwater Basin (the City of Anderson, Anderson-Cottonwood Irrigation District, Bella Vista Water District, Clear Creek Community Services District, the City of Redding and the County of Shasta) formed the EAGSA and designated the City of Redding as the fiscal agent. The City received a fully executed Grant Agreement for funding in the amount of $2,383,700 from the SGMA Implementation Grant on February 14, 2024.

Environmental Review
Staff has reviewed the action and determined that it is statutorily exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15262 – Feasibility and Planning Studies. The exemption applies to projects involving only feasibility or planning for possible future actions. The SGMA Implementation efforts will involve data collection and identification of potential future projects or actions: however, this activity will not have a legally binding effect on later activities and implementation of any future project or action would be subject to the requirements of CEQA. This action has no potential to have a significant effect on the environment.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
Packet Pg. 272
Report to Redding City Council March 12, 2024
Re: 4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds Page 3 Attachments
^Resolution
^Notice of Exemption
SGMA Implementation Grant Agreement
Packet Pg. 273
RESOLUTION NO. 2024-____

A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 35
TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2023-060
APPROPRIATING $2,383,700 IN STATE GRANT FUNDING FOR THE

ENTERPRISE AND ANDERSON SUB-BASIN SUSTAINABLE GROUNDWATER MANAGEMENT PROJECT FOR FISCAL YEAR 2023-2024

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
421 5421 EAGSA $2,383,700
THAT account titles and numbers requiring adjustments by this Resolution are as follows:

USE SOURCE

OF FUNDS OF FUNDS
Increase (Decrease) Revenue
421-5421-3623201-00000
State Grant OperatingFiduciary/Custodial Funds $ 2,383,700 Increase Expenditures
421-5421-6490901-00000
State Operating Grant
Activities - Other $ 2,383,700
Total $ 2,383,700 $ 2,383,700
THAT the purpose is to appropriate $2,383,700 in State grant funding for the Enterprise and Anderson Sub-basin Sustainable Groundwater Management project for the fiscal year 2023- 2024.

I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 19th day of March, 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 CHRISTIAN M. CURTIS, City Attorney Packet Pg. 274 Attachment: ^Resolution (4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds) Packet Pg. 275
Attachment: ^Notice of Exemption (4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds)

GRANT AGREEMENT BETWEEN THE STATE OF CALIFORNIA
(DEPARTMENT OF WATER RESOURCES) AND

CITY OF REDDING (ON BEHALF OF THE ENTERPRISE ANDERSON GROUNDWATER SUSTAINABILITY

AGENCY (EAGSA))
AGREEMENT NUMBER 4600015648

SUSTAINABLE GROUNDWATER MANAGEMENT ACT (SGMA) IMPLEMENTATION GRANT THIS GRANT AGREEMENT is entered into by and between the Department of Water Resources of the State of California, herein referred to as the "State" or “DWR” and the City of Redding on behalf of the Enterprise Anderson Groundwater Sustainability Agency (EAGSA) in the State of California, duly organized, existing, and acting pursuant to the laws thereof, herein referred to as the "Grantee," which parties do hereby agree as follows:

1. PURPOSE. The State shall provide funding from the Budget Acts of 2021 and 2022 (Stats. 2021, ch. 240, § 80; Stats. 2022, ch. 43, § 2), and Public Resources Code section 80146 et seq. (Proposition 68) to the Grantee to assist in financing the EAGSA Sustainable Groundwater Management Grant Project (Project).

By executing this Agreement, the Grantee certifies that the purpose of the Project is to implement SGMA as outlined in the Grantee’s Groundwater Sustainability Plan (GSP) or Alternative to a GSP. The provision of State funds pursuant to this Agreement shall not be construed or interpreted to mean that the GSP or Alternative to GSP, or any components of the GSP, implemented in accordance with the Work Plan as set forth in Exhibit A will be: adopted by the applicable Groundwater Sustainability Agency (GSA); obtain the necessary desirable results of Sustainable Management Criteria; or, meet all of the evaluation and assessment criteria when submitted to DWR as required by the SGMA and implementing regulations.

2. TERM OF GRANT AGREEMENT. The term of this Grant Agreement begins on JANUARY 1, 2024, and ends three (3) years following the final payment unless otherwise terminated or amended as provided in this Agreement. However, all work shall be completed by MARCH 31, 2026, and no funds may be requested after APRIL 15, 2026.

3. GRANT AMOUNT. The maximum amount payable by the State under this Agreement shall not exceed $2,383,700. Any additional costs are the responsibility of the Grantee.

4. BASIC CONDITIONS. The State shall have no obligation to disburse money for the Project under this Grant Agreement until the Grantee has satisfied the following conditions:

A. The Grantee must demonstrate compliance with all eligibility criteria set forth on Pages 7 through 13 of the SGM Grant Program 2021 Guidelines, amended April 2023 (2021 Guidelines).

B. For the term of this Grant Agreement, the Grantee submits Quarterly Progress Reports, associated quarterly invoices, and all invoice backup documentation no later than sixty (60) days following the end of the calendar quarter (e.g. submitted by May 30th, August 29th, November 29th, and February 28th) and all other deliverables as required by Paragraph 11, “Submission of Reports” and Exhibit A, “Work Plan”.

C. Prior to the commencement of construction or implementation activities, if applicable, the Grantee shall submit the following to the State:
i. Final plans and specifications certified by a California Registered Civil Engineer (or equivalent registered professional as appropriate) to certify compliance for each approved project as listed in Exhibit A, “Work Plan” of this Grant Agreement.
ii. Work that is subject to the California Environmental Quality Act (CEQA) process and/or environmental permitting shall not proceed under this Grant Agreement until the following actions are performed:
a. The Grantee submits to the State all applicable environmental permits as indicated on the Environmental Information Form (EIF) to the State,
b. Documents that satisfy the CEQA process are received by the State, c. The State has completed its CEQA compliance review as a Responsible Agency, and DocuSign Envelope ID: B94CD9D3-390C-4200-9184-316C249ECC52 Packet Pg. 276 Attachment: SGMA Implementation Grant Agreement (4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds) Grant Agreement No. 4600015648

d. The Grantee receives written concurrence from the State of Lead Agency’s CEQA document(s) and State notice of verification of environmental permit submittal.

The State’s concurrence of Lead Agency’s CEQA documents is fully discretionary and shall constitute a condition precedent to any work (i.e., construction or implementation activities) for which it is required. Once CEQA documentation has been completed, the State will consider the environmental documents and decide whether to continue to fund the project or to require changes, alterations, or other mitigation. The Grantee must also demonstrate that it has complied with all applicable requirements of the National Environmental Policy Act (NEPA) by submitting copies of any environmental documents, including environmental impact statements, Finding of No Significant Impact, mitigation monitoring programs, and environmental permits as may be required prior to beginning construction/implementation. iii. A monitoring plan as required by Paragraph 13, “Project Monitoring Plan Requirements.”

5. DISBURSEMENT OF FUNDS. The State will disburse to the Grantee the amount approved, subject to the availability of funds through normal State processes. Notwithstanding any other provision of this Grant Agreement, no disbursement shall be required at any time or in any manner which is in violation of, or in conflict with, federal or state laws, rules, or regulations, or which may require any rebates to the federal government, or any loss of tax-free status on state bonds, pursuant to any federal statute or regulation. Any and all money disbursed to the Grantee under this Grant Agreement shall be deposited in a non-interest bearing account and shall be used solely to pay Eligible Project Costs.

6. ELIGIBLE PROJECT COST. The Grantee shall apply State funds received only to Eligible Project Costs in accordance with applicable provisions of the law and Exhibit B, “Budget.” Eligible Project Costs include the reasonable costs of studies, engineering, design, land and easement acquisition and associated legal fees, preparation of environmental documentation, environmental mitigations, monitoring, and project construction. Reimbursable administrative expenses are the necessary costs incidental but directly related to the Project included in this Agreement. Work performed on the Project after OCTOBER 4, 2022, shall be eligible for reimbursement.

Costs that are not eligible for reimbursement include, but are not limited to the following items:

A. Costs for preparing and filing a grant application and/or spending plan.

B. Costs associated with the formation of a GSA(s) or other board formation that is responsible for implementing SGMA.

C. Operation and maintenance costs, including post construction performance and monitoring costs.

D. Purchase of equipment not an integral part of a project.

E. Establishing a reserve fund.

F. Purchase of water supplies.

G. Replacement of existing funding sources.

H. Travel and per diem costs, except for mileage.

I. Support of existing agency requirements and mandates.

J. Purchase of land in excess of the minimum required acreage necessary to operate as an integral part of a project, as set forth and detailed by engineering and feasibility studies, or acquisition of land by eminent domain.

K. Meals, food items, or refreshments.

L. Costs incurred as part of any necessary response and cleanup activities required under the Comprehensive Environmental Response, Compensation, and Liability Act; Resource Conservation and Recovery Act; Hazardous Substances Account Act; or other applicable law.

DocuSign Envelope ID: B94CD9D3-390C-4200-9184-316C249ECC52 Packet Pg. 277 Attachment: SGMA Implementation Grant Agreement (4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds) Grant Agreement No. 4600015648

M. Overhead and indirect costs: “Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than one cost objective and are not readily assignable to the funded project (i.e., costs that are not directly related to the funded project). Examples of Indirect Costs include, but are not limited to: central service costs; general administration of the Grantee; non-project-specific accounting and personnel services performed within the Grantee’s organization; depreciation or use allowances on buildings and equipment; the costs of operating and maintaining non-project-specific facilities; tuition and conference fees; forums, trainings, and seminars; and, generic overhead or markup. This prohibition applies to the Grantee and any subcontract or sub-agreement for work on the Project that will be reimbursed pursuant to this Agreement.

7. METHOD OF PAYMENT. After the disbursement requirements in Paragraph 4, “Basic Conditions” are met, the State will disburse the whole or portions of State funding to the Grantee, following receipt from the Grantee via US mail or Express mail delivery of a “wet signature” invoice or an electronic invoice certified and transmitted via DocuSign for costs incurred and timely Quarterly Progress Reports as required by Paragraph 11, “Submission of Reports.” Payment will be made no more frequently than quarterly, in arrears, upon receipt of an invoice bearing the Grant Agreement number. Invoices must accompany a Quarterly Progress Report and shall be submitted within no later than sixty (60) days following the end of the calendar quarter (e.g. submitted by May 30th, August 29th, November 29th, and February 28th). The State will notify the Grantee, in a timely manner, whenever, upon review of an Invoice, the State determines that any portion or portions of the costs claimed are not eligible costs or is not supported by documentation or receipts acceptable to the State. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to the State to cure such deficiency(ies). If the Grantee fails to submit adequate documentation curing the deficiency(ies), the State will adjust the pending invoice by the amount of ineligible or unapproved costs.

Invoices submitted by the Grantee shall include the following information:

A. Costs incurred for work performed in implementing the Project during the period identified in the particular invoice. If backup documentation provided is outside of the period identified in the particular invoice, the Grantee must provide justification within the associated Quarterly Progress Report and note the discrepancy on the Invoice Submittal Summary Sheet.

B. Costs incurred for any interests in real property (land or easements) that have been necessarily acquired for a project during the period identified in the particular invoice for the implementation of a project.

C. Invoices shall be submitted on forms provided by the State and shall meet the following format requirements:
i. Invoices must contain the date of the invoice, either the time period covered by the invoice or the invoice date received within the time period covered, and the total amount due. ii. Invoices must be itemized based on the categories (i.e., tasks) specified in Exhibit B, “Budget.” The amount claimed for salaries/wages/consultant fees must include a calculation formula (i.e., hours or days worked times the hourly or daily rate = the total amount claimed). iii. One set of sufficient evidence (i.e., receipts, copies of checks, time sheets) must be provided for all costs included in the invoice.
iv. Each invoice shall clearly delineate those costs claimed for reimbursement from the State’s funding amount, as depicted in Paragraph 3, “Grant Amount.”
Original signature and date (in ink) of the Grantee’s Project Representative. Submit the original “wet signature” copy of the invoice form to the following address: William Ehorn at 2440 Main Street, Red Bluff, CA 96080 or an electronic signature certified and transmitted via DocuSign from authorized representative to William Ehorn at [email protected].

DocuSign Envelope ID: B94CD9D3-390C-4200-9184-316C249ECC52 Packet Pg. 278 Attachment: SGMA Implementation Grant Agreement (4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds) Grant Agreement No. 4600015648

All invoices submitted shall be accurate and signed under penalty of law. Any, and all costs submitted pursuant to this Agreement shall only be for the tasks set forth herein. The Grantee shall not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs/cost share). Any eligible costs for which the Grantee is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is illegal and constitutes fraud. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements of grant funds and/or termination of this Agreement requiring the repayment of all funds disbursed hereunder plus interest. Additionally, the State may request an audit pursuant to Paragraph D.5 and refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. (Civ. Code, §§ 1572-1573; Pen. Code, §§ 470, 487-489.)

8. WITHHOLDING OF DISBURSEMENTS BY THE STATE. If the State determines that a project is not being implemented in accordance with the provisions of this Grant Agreement, or that the Grantee has failed in any other respect to comply with the provisions of this Grant Agreement, and if the Grantee does not remedy any such failure to the State’s satisfaction, the State may withhold from the Grantee all or any portion of the State funding and take any other action that it deems necessary to protect its interests.

Where a portion of the State funding has been disbursed to the Grantee and the State notifies the Grantee of its decision not to release funds that have been withheld pursuant to Paragraph 9, “Default Provisions,” the portion that has been disbursed shall thereafter be repaid immediately at the time the State notifies the Grantee, as directed by the State. The State may consider the Grantee’s refusal to repay the requested disbursed amount a contract breach subject to the default provisions in Paragraph 9. If the State notifies the Grantee of its decision to withhold the entire funding amount from the Grantee pursuant to this Paragraph, this Grant Agreement shall terminate upon receipt of such notice by the Grantee and the State shall no longer be required to provide funds under this Grant Agreement and the Grant Agreement shall no longer be binding on either party.

9. DEFAULT PROVISIONS. The Grantee will be in default under this Grant Agreement if any of the following occur:

A. Substantial breaches of this Grant Agreement, or any supplement or amendment to it, or any other agreement between the Grantee and the State evidencing or securing the Grantee’s obligations; i. Making any false warranty, representation, or statement with respect to this Grant Agreement or the application filed to obtain this Grant Agreement;
ii. Failure to operate or maintain the Project in accordance with this Grant Agreement. iii. Failure to make any remittance required by this Grant Agreement, including any remittance recommended as the result of an audit conducted pursuant to Paragraph D.5. iv. Failure to submit quarterly progress reports pursuant to Paragraph 4. v. Failure to routinely invoice the State pursuant to Paragraph 7. vi. Failure to meet any of the requirements set forth in Paragraph 10, “Continuing Eligibility.” vii. A determination pursuant to Government Code section 11137 that the Grantee has violated any of the following: Government Code sections 11135 or 12960 et seq.; Civil Code sections 51-

54.2, inclusive; or any regulations adopted to implement these sections.

B. Should an event of default occur, the State shall provide a notice of default to the Grantee and shall give the Grantee at least ten (10) calendar days to cure the default from the date the notice is sent via first-class mail to the Grantee. If the Grantee fails to cure the default within the time prescribed by the State, the State may do any of the following:
i. Declare the funding be immediately repaid, with interest, which shall be equal to the State of California general obligation bond interest rate in effect at the time of default. ii. Terminate any obligation to make future payments to the Grantee.

DocuSign Envelope ID: B94CD9D3-390C-4200-9184-316C249ECC52 Packet Pg. 279 Attachment: SGMA Implementation Grant Agreement (4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds) Grant Agreement No. 4600015648

iii. Terminate the Grant Agreement.
iv. Take any other action that it deems necessary to protect its interests.

In the event the State finds it necessary to enforce this provision of this Grant Agreement in the manner provided by law, the Grantee agrees to pay all costs incurred by the State including, but not limited to, reasonable attorneys' fees, legal expenses, and costs.

10. CONTINUING ELIGIBILITY. The Grantee must meet the following ongoing requirement(s) and all eligibility criteria outlined in the 2021 Guidelines, amended April 2023, to remain eligible to receive State funds:

A. The Grantee must continue to demonstrate eligibility and the groundwater basin must continue to be an eligible basin as outlined in the 2021 Guidelines, amended April 2023, and 2021 PSP.

B. Grantee must adhere to the protocols developed pursuant to The Open and Transparent Water Data Act (Wat. Code, § 12406) for data sharing, transparency, documentation, and quality control.

C. If the Grantee diverting surface water, the Grantee must maintain compliance with diversion reporting requirements as outlined in Water Code section 5100 et seq.

D. If applicable, maintain compliance with the Urban Water Management Planning Act (Wat. Code, § 10610 et seq.).

E. If applicable, maintain compliance with Sustainable Water Use and Demand Reduction requirements outlined in Water Code Section 10608, et seq.

F. On March 4, 2022, the Governor issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. The EO may be found at:
https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under State law. The EO directs DWR to terminate funding agreements with, and to refrain from entering any new agreements with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine that the Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this Agreement. The State shall provide the Grantee advance written notice of such termination, allowing the Grantee at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.

11. SUBMISSION OF REPORTS. The submittal and approval of all reports is a requirement for the successful completion of this Grant Agreement. Reports shall meet generally accepted professional standards for technical reporting and shall be proofread for content, numerical accuracy, spelling, and grammar prior to submittal to the State. All reports shall be submitted to the State’s Grant Manager, and shall be submitted via DWR’s “Grant Review and Tracking System” (GRanTS), or an equivalent online submittal tool. If requested, the Grantee shall promptly provide any additional information deemed necessary by the State for the approval of reports. Reports shall be presented in the formats described in the applicable portion of Exhibit F, “Report Formats and Requirements.” The timely submittal of reports is a requirement for initial and continued disbursement of State funds. Submittal and subsequent approval by the State, of a Project Completion Report is a requirement for the release of any funds retained for such project.

A. Quarterly Progress Reports: The Grantee shall submit Quarterly Progress Reports to meet the State’s requirement for disbursement of funds. Quarterly Progress Reports shall be uploaded via GRanTS, or an equivalent online submittal tool, and the State’s Grant Manager notified of upload. Quarterly Progress Reports shall, in part, provide a brief description of the work performed, the Grantees activities, milestones achieved, any accomplishments and any problems encountered in the performance of the work under this Grant Agreement during the reporting period. The first Quarterly Progress Report should be submitted to the State no later than APRIL 30, 2024 with future reports then due on successive three-month increments based on the invoicing schedule and this date. The DWR DocuSign Envelope ID: B94CD9D3-390C-4200-9184-316C249ECC52 Packet Pg. 280 Attachment: SGMA Implementation Grant Agreement (4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds) Grant Agreement No. 4600015648

Grant Manager will provide a Quarterly Progress Report template that shall be used for the duration of the Agreement.

B. Groundwater Sustainability Plan or Alternative: The Grantee shall ensure that any updates to the GSP or Alternative shall be formatted, drafted, prepared, and completed as required by the GSP Regulations, and in accordance with any other regulations or requirements that are stipulated through SGMA.

C. Component Completion Report(s): The Grantee shall prepare and submit to the State a separate Component Completion Report for each component included in Exhibit A, “Work Plan”. The Grantee shall submit a Component Completion Report within ninety (90) calendar days of component completion. Each Component Completion Report shall include, in part, a description of actual work done, any changes or amendments to each component, and a final schedule showing actual progress versus planned progress, copies of any final documents or reports generated or utilized during a project. The Component Completion Report shall also include, if applicable, certification of final component by a California Registered Civil Engineer (or equivalent registered professional as appropriate), consistent with Standard Condition D.18, “Final Inspections and Certification of Registered Civil Engineer”. A DWR “Certification of Project Completion” form will be provided by the State.

D. Grant Completion Report: Upon completion of the Project included in Exhibit A, “Work Plan” the Grantee shall submit to the State a Grant Completion Report. The draft Grant Completion Report shall be submitted to the DWR Grant Manager for comment and review 90 days before the work completion date outlined on Page 1, Paragraph 2. The final Grant Completion Report shall address the DWR Grant Manager’s comments prior to the work completion date. The report shall be prepared and presented in accordance with the provisions of Exhibit F, “Report Formats and Requirements”. Retention for the project to be completed as part of this Grant Agreement will not be disbursed until the Grant Completion Report is submitted and approved by the State.

E. Post Performance Reports: the Grantee shall submit Post Performance Reports. Post Performance Reports shall be submitted to the State within ninety (90) calendar days after the first operational year of a project has elapsed. This record keeping and reporting process shall be repeated annually for a total of three (3) years after the completed project begins operation.

F. Deliverable Due Date Schedule: The Grantee shall submit a Deliverable Due Date Schedule within 30 days of the execution date of the Grant Agreement. No invoices will be reviewed or processed until the Deliverable Due Date Schedule has been received by the DWR Grant Manager. Any edits to the schedule must be approved by the DWR Grant Manager and the revised schedule saved in the appropriate project files.

G. Environmental Information Form (EIF): Prepare and submit the EIF within 30-days of the execution date of the Grant Agreement. No invoices will be reviewed or processed until the EIF has been received by the DWR Grant Manager.

12. OPERATION AND MAINTENANCE OF PROJECT. For the useful life of construction and implementation projects and in consideration of the funding made by the State, the Grantee agrees to ensure or cause to be performed the commencement and continued operation of the project, and shall ensure or cause the project to be operated in an efficient and economical manner; shall ensure all repairs, renewals, and replacements necessary to the efficient operation of the same are provided; and shall ensure or cause the same to be maintained in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted. The State shall not be liable for any cost of such maintenance, management, or operation. The Grantee or their successors may, with the written approval of the State, transfer this responsibility to use, manage, and maintain the property. For purposes of this Grant Agreement, “useful life” means period during which an asset, property, or activity is expected to be usable for the purpose it was acquired or implemented; “operation costs” include direct costs incurred for material and labor needed for operations, utilities, insurance, and similar expenses, and “maintenance costs” DocuSign Envelope ID: B94CD9D3-390C-4200-9184-316C249ECC52 Packet Pg. 281 Attachment: SGMA Implementation Grant Agreement (4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds) Grant Agreement No. 4600015648

include ordinary repairs and replacements of a recurring nature necessary for capital assets and basic structures and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. Refusal of the Grantee to ensure operation and maintenance of the projects in accordance with this provision may, at the option of the State, be considered a breach of this Grant Agreement and may be treated as default under Paragraph 9, “Default Provisions.”

13. PROJECT MONITORING PLAN REQUIREMENTS. As required in Exhibit A, “Work Plan”, a Monitoring Plan shall be submitted to the State prior to disbursement of State funds for construction or monitoring activities. The Monitoring Plan should incorporate Post Performance Monitoring Report requirements as defined and listed in Exhibit J, “Monitoring and Maintenance Plan Components”. The SGM Grant Program has developed post construction monitoring methodologies that shall be used for the Post Performance Reporting.

14. NOTIFICATION OF STATE. The Grantee shall promptly notify the State, in writing, of the following items:

A. Events or proposed changes that could affect the scope, budget, or work performed under this Grant Agreement. The Grantee agrees that no substantial change in the scope of a project will be undertaken until written notice of the proposed change has been provided to the State and the State has given written approval for such change. Substantial changes generally include changes to the scope of work, schedule or term, and budget.

B. Any public or media event publicizing the accomplishments and/or results of this Grant Agreement and provide the opportunity for attendance and participation by the State’s representatives. The Grantee shall make such notification at least fourteen (14) calendar days prior to the event.

C. Discovery of any potential archaeological or historical resource. Should a potential archaeological or historical resource be discovered during construction, the Grantee agrees that all work in the area of the find will cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the State has determined what actions should be taken to protect and preserve the resource. The Grantee agrees to implement appropriate actions as directed by the State.

D. The initiation of any litigation or the threat of litigation against the Grantee regarding the Project or that may affect the Project in any way.

E. For implementation/construction Projects, final inspection of the completed work on a project by a Registered Civil Engineer, in accordance with Standard Condition D.18, “Final Inspections and Certification of Registered Civil Engineer.” The Grantee shall notify the State’s Grant Manager of the inspection date at least fourteen (14) calendar days prior to the inspection in order to provide the State the opportunity to participate in the inspection.

15. NOTICES. Any notice, demand, request, consent, or approval that either party desires or is required to give to the other party under this Grant Agreement shall be in writing. Notices may be transmitted by any of the following means:

A. By delivery in person.

B. By certified U.S. mail, return receipt requested, postage prepaid.

C. By “overnight” delivery service; provided that next-business-day delivery is requested by the sender.

D. By electronic means.

E. Notices delivered in person will be deemed effective immediately on receipt (or refusal of delivery or receipt). Notices sent by certified mail will be deemed effective given ten (10) calendar days after the date deposited with the U. S. Postal Service. Notices sent by overnight delivery service will be deemed effective one business day after the date deposited with the delivery service. Notices sent electronically will be effective on the date of transmission, which is documented in writing. Notices shall be sent to the below addresses. Either party may, by written notice to the other, designate a different address that shall be substituted for the one below.

DocuSign Envelope ID: B94CD9D3-390C-4200-9184-316C249ECC52 Packet Pg. 282 Attachment: SGMA Implementation Grant Agreement (4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds) Grant Agreement No. 4600015648

16. PERFORMANCE EVALUATION. Upon completion of this Grant Agreement, the Grantee’s performance will be evaluated by the State and a copy of the evaluation will be placed in the State file and a copy sent to the Grantee.

17. PROJECT REPRESENTATIVES. The Project Representatives during the term of this Grant Agreement are as follows:

Department of Water Resources
Arthur Hinojosa
Manager, Division of Regional Assistance
P.O. Box 942836
Sacramento, CA 94236-0001
Phone: (916) 902-6713
Email: [email protected]
City of Redding (on behalf of the EAGSA)
Josh Watkins
Water Utility Manager , City of Redding
PO Box 496071
Redding CA, 96049
Phone: (530) 224-6040
Email: [email protected]
Direct all inquiries to the Grant Manager:

Department of Water Resources
William Ehorn
Engineering Geologist,
P.O. Box 942836
Sacramento, CA 94236-0001
Phone: (530) 515-1930
Email: [email protected]
City of Redding (on behalf of the EAGSA)
Brandon Bishop
Water Conservation Specialist,
PO Box 496071
Redding CA, 96049
Phone: (530) 224-6032
Email: [email protected]
Either party may change its Grant Manager, Project Representative, or Project Manager upon written notice to the other party.

DocuSign Envelope ID: B94CD9D3-390C-4200-9184-316C249ECC52 Packet Pg. 283 Attachment: SGMA Implementation Grant Agreement (4.11(a)--Adopt Budget Resolution to Appropriate EAGSA Grant Funds) Grant Agreement No. 4600015648