Redding City Council
August 20, 2024

Section 3: General Provisions
Paragraph 1: Definitions
“Applicable Laws” are all local, state, and federal statutes, regulations, rules, codes (including building codes), ordinances, judgments, orders, notice requirements, and other requirements of governmental authorities pertaining to the use or condition of the Lease Premises and the conduct of Lessee’s business thereon in effect as of the date of execution of this Lease or subsequently enacted and lawfully applied hereto.
“Damages” are all liabilities, demands, claims, actions, or causes of action whether regulatory, legislative, or judicial in nature; all assessments, levies, losses, fines, penalties, damages, costs, and expenses, including, without limitation: (i) reasonable attorneys’, accountants’, investigators’, and experts’ fees and expenses sustained or incurred in connection with the defense or investigation of any such liability, and (ii) costs and expenses incurred to bring the Lease Premises into compliance with Applicable Laws, Environmental Laws, a court order, or applicable provisions of a Regulatory Agency. The term “Damages” also includes those Damages that arise as a result of strict liability, whether arising under Environmental Laws or otherwise.
“Environmental Laws” are any and all federal, state, or local environmental, health, or safety-related laws, regulations, standards, decisions of courts, ordinances, rules, codes, orders, decrees, directives, guidelines, permits, or permit conditions, treaties and conventions, currently existing and as amended, enacted, issued, or adopted in the future that are or become applicable to Lessee, and the Lease Premises with respect to: (a) the protection, preservation, or clean-up of the environment, wildlife, habitat, or natural resources; (b) the use, treatment, storage, transportation, handling, or disposal of Hazardous Materials; (c) the quality of the air and the discharge of airborne wastes, gases, particles, or other emissions; (d) the preservation or protection of waterways, groundwater, or drinking water; or (e) the health and safety of persons or property.
“Hazardous Materials” are any chemical, substance, material, controlled substance, object, condition, waste, living organism, or combination thereof that is or may be hazardous to human health or safety or to the environment due to its radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity, Packet Pg. 264 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

carcinogenicity, mutagenicity, phytotoxicity, infectiousness, or other harmful or potentially harmful properties or effects, including, without limitation, tobacco smoke, petroleum and petroleum products, asbestos, radon, polychlorinated biphenyls (PCBs), and all of those chemicals, substances, materials, controlled substances, objects, conditions, wastes, living organisms, or combinations thereof that are now or become in the future listed, defined, or regulated in any manner by any Environmental Laws based on, directly or indirectly, such properties or effects.
“Improvements” are any modification, alteration, addition, or removal of any material and any other action that changes the condition of the Lease Premises from the natural state, whether situated above, on, or under the Lease Premises.

Improvements include any construction situated on or placement of material within the Lease Premises regardless of value.
“Lease” is this document together with all subsequent amendments and exhibits.
“Major Repairs” means any work that requires a permit or approval from other agencies, requires environmental review, or requires rebuilding or replacing any of the authorized Improvement(s).
“Mineral Resources” includes timber, crops, sand, oil, gas, hard rock minerals and other mineral deposits as defined in Public Resources Code section 6407. “Natural Resources” are all of the flora and fauna native to both the upland terrestrial, fresh water, coastal and marine ecosystems within, and adjacent to, the lease premises.
“Public Trust” means the constitutional, statutory, and common law doctrine providing the state’s sovereign authority over the navigable waters of the state, including the tidelands and submerged lands underlying those waters that are held in trust for the benefit of all the people of the state and for purposes that include maritime or water-dependent commerce, navigation, fisheries, the preservation of lands in their natural state for scientific study, open space, wildlife habitat, and water-oriented recreation.
“Repairs” means work to maintain the Lease Premises and Improvements thereon in good, safe, and clean condition. Repairs are work that is minor in scope, do not require obtaining permits, approvals, or authorizations from other agencies, such as building permits, and do not require environmental review Packet Pg. 265 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

under State or Federal environmental laws.

Paragraph 2: Rent

2.1. Absolute Triple Net Lease. This Lease is an absolute triple net lease, meaning Lessor has no obligation with respect to the payment of taxes, insurance, the cost of maintenance, utilities, repairs, or other costs or obligations associated with the Leased Premises, except as expressly stated herein.

2.2. Payment of Rent. Lessee must pay rent annually, on or before each anniversary of this Lease unless this Lease specifies a different rent schedule. The first installment is due on the beginning date of this Lease or within 60 days of Lessor authorizing the Lease at a public meeting, whichever is later. Rent is due each year in advance. Should Lessee submit payments that are less than the full amount of rent due under this Lease, Lessor may provide a supplemental billing invoice. Rent will not be refunded or prorated if Lessee discontinues use of the Lease Premises during the term.

2.3. Place for Payment. All payments under this Lease must be submitted to Lessor’s principal office as specified in this Lease. Lessee may contact Lessor’s accounting staff for Lessor’s current practices for payment by credit card or electronic fund transfer.

2.4. Courtesy Invoices. Lessor may send courtesy invoices to the address on file for Lessee at least thirty (30) days before a rent payment is due. Lessor’s failure to, or delinquency in, providing invoices will neither excuse Lessee from paying rent nor extend the time for paying rent. If Lessor does not send a courtesy invoice, Lessee must submit rent in the amount of the prior year’s rent when due and contact Lessor within thirty (30) days to determine the balance due.

2.5. Penalties and Interest. Penalties for late payments of any amounts due under this Lease and interest thereon are as provided in Title 2, California Code of Regulations section 1911(b). Timeliness of receipt of remittances shall be as provided in Title 2, California Code of Regulations section 1911(a).

2.6. Annual Adjustment of Rent. The rent specified in Section 1 of this Lease will be adjusted annually by the Consumer Price Index as specified in Title 2, California Code of Regulations section 1900(m) & (n) unless otherwise specified in this Lease.

2.7. Review of Non-Monetary Consideration. If rent is discounted or waived pursuant to Title 2, California Code of Regulations section 2003(e)(4), Lessor may Packet Pg. 266 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

review such determination at any time and set a monetary rental. Lessee shall be given at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days’ notice prior to the effective date that the rent is changed, whichever provides more notice.

2.8. Periodic Rent Review. Lessor may modify the method, amount, or rate of consideration effective on each tenth anniversary of the beginning date of this Lease, in addition to the last two years of the Lease as provided in Provision 14.4 below. Lessor shall consider the factors provided in Title 2, California Code of Regulations section 2003(d) when determining whether a rent modification is appropriate and which rental method listed in section 2003(a) should apply.

Should Lessor fail to exercise such right effective on any tenth anniversary, it may do so on any one (1) of the next nine (9) anniversaries following such tenth anniversary, without prejudice to its right to modify rent on the next or any succeeding tenth anniversary of the beginning date. No such modification shall become effective unless Lessee is given at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the rent modification is considered or thirty (30) days’ notice prior to the effective date of the increase, whichever provides a greater notice period.

2.9. If Lessor elects to prepare an appraisal to establish a new rent, Lessee may, at its option, also provide a timely independent appraisal at its sole expense for Lessor’s review and consideration. Prior to Lessee’s contracting for such appraisal, Lessor and Lessee shall negotiate in good faith and agree upon the terms and conditions for such third-party appraisal, including but not limited to the highest and best use, appraisal methodology, and minimum appraiser credentials. Such appraisal shall be prepared in accordance with generally accepted and applicable appraisal standards as they are adopted from time to time by the Appraisal Standards Board of the Appraisal Foundation, and Lessor’s Appraisal Guidelines.

2.10. Books and Records. Lessee must keep and maintain full and accurate accounting books and records of transactions from the Lease Premises in accordance with generally accepted accounting principles for at least the five (5) prior years. The accounting books and records kept and maintained by Lessee for audit purposes must include all records, receipts, journals, ledgers, and documents reasonably necessary to enable Lessor or its auditors to perform a complete and accurate audit of gross sales and exclusions from gross sales in Packet Pg. 267 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

accordance with generally accepted accounting principles. Lessee must also maintain an original receipt for the payment of taxes, assessments, or installments and deliver such to Lessor upon request.

2.11. Report of Gross Income. On Lessor’s request, Lessee must submit a Report of Gross Income on a form provided by Lessor for the prior five (5) years. This report together with supporting documentation (hereinafter collectively referred to as “Income Reports”) must include all business operations located on or over the Lease Premises. The gross income of sublessees and all others generating income on the Lease Premises must be reported separately and with sufficient organization and detail so that Lessor can identify the source of all gross income generated on the Lease Premises.

2.12. Audits. On not less than ten (10) days' prior written notice to Lessee, Lessor may cause an audit to be made of the Income Reports and all of Lessee's records and accounting books necessary (in Lessor’s judgment) to audit such items. Lessee will make all such books and records available for the audit at the Lease Premises or at Lessor’s offices. If the audit discloses an underpayment of Rent, Lessee will immediately pay to Lessor the amount of the underpayment with "Interest" (as provided in Paragraph 2.5), which will accrue from the date the payment should have been made through and including the date of payment. If the audit discloses an underreporting of rent in excess of two percent (2%) of the reported Gross Income, then Lessee will also immediately pay to Lessor all reasonable costs and expenses incurred in the audit and in collecting the underpayment, including auditing costs and attorney fees. If the audit discloses an overpayment of Rent, Lessee will be entitled to a credit in the amount of the overpayment against the next rent payment(s).

Paragraph 3: Surety

3.1. Lessee to Obtain Surety. Lessee shall provide a surety bond or other security device acceptable to Lessor when required by Section 1 of this Lease. Such security shall be for the specified amount, name the State of California, California State Lands Commission, as the assured, and guarantee to Lessor the faithful observance and performance by Lessee of all the terms, covenants, and conditions of this Lease.

3.2. Lessor’s Modification of Surety. Lessor may require an increase in the amount of the surety bond or other security device to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or Packet Pg. 268 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

other increased need for security. The surety bond or other security device may be increased: (i) if any additional Improvements or activities are authorized on the Lease Premises; (ii) if Lessee modifies any existing Improvements such that the cost for removal of such Improvements is increased; (iii) when a periodic rent review is conducted under section 2.8; (iv) on each fifth anniversary of this Lease, (v) Lessor determines it is in the best interest of the state; (v) within the last two years of the Lease. Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one of the next four anniversaries without prejudice to its right to modify the surety on the next fifth anniversary or as otherwise provided above. Lessor will provide at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the modification of the surety is considered, or thirty (30) days’ notice prior to the effective date of the increase.

3.3. Lessee’s Modification of Surety. Any security device required under this Lease must be maintained at all times during the Lease term. Lessee must first seek approval of Lessor before changing the surety holder or the type of security device used.

Paragraph 4: Insurance

4.1. Lessee Must Insure Lease Premises. Lessee must obtain and maintain in full force and effect during the term of this Lease comprehensive general liability insurance and property damage insurance against any and all claims or liability arising out of the ownership, use, occupancy, condition, or maintenance of the Lease Premises and all Improvements. The coverage limit must be no less than the amount specified in Section 1 of this Lease.

4.2. Insurance Policy Requirements. The insurance policy must identify the Lease by its assigned number. The coverage provided must be primary and noncontributing. Lessee must keep such policy current. Lessor must be named as a “certificate holder” or an “additional interest” on the policy. Lessee must provide Lessor with a current certificate of insurance at all times. At Lessor’s request, Lessee must provide a full copy of the current insurance policy, along with any and all endorsements or other such documents affecting the coverage. Lessor will not be responsible for any premiums or other assessments on the policy.

4.3. Notice to Lessor. Lessee shall notify Lessor within five (5) business days if the insurance is canceled for any reason and shall act diligently to replace the insurance. Failure to timely replace the insurance may result in a default of the Packet Pg. 269 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

lease.

4.4. Modification. Lessor may require an increase in the amount of the insurance to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or other increased need. Insurance coverage may be increased: (i) if any additional Improvements or activities are authorized on the Lease Premises; (ii) if Lessee modifies any existing Improvements or intensity of use; (iii) when a periodic rent review is conducted under section 2.8; (iv) on each fifth anniversary of this Lease; (v) Lessor determines it is in the best interest of the state; (vi)within the last two years of the Lease. Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one of the next four anniversaries without prejudice to its right to modify insurance requirements on the next fifth anniversary. Lessor will provide at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the modification of insurance is considered, or thirty (30) days’ notice prior to the effective date of the increase.

Paragraph 5: Taxes, Assessments, and Fees

5.1. Revenue and Tax Code Section 107.6 Statement. Issuance of this Lease creates a possessory interest that may be subject to property taxation. The Lessee may be subject to, and is solely responsible for, any possessory interest taxes levied on the leasehold interest.

5.2. Lessee to Pay All Taxes, Assessments, and Fees. In addition to any Rent due under this Lease, Lessee must pay when due all real and personal property taxes imposed on or associated with the Lease Premises during the term of this Lease.

This includes, without limitation: possessory interest taxes, assessments, special assessments, user fees, and service charges. If this Lease begins or ends during a tax year, Lessee must pay the taxes, assessments, and fees for the portion of the tax year the Lease was in effect.

5.3. Reimbursement Agreements. Lessee must pay in full any amount owed on the Application Reimbursement Agreement within 30 days of invoice.

5.4. Records of Payments. Lessee shall keep the official and original receipt for payments required by this paragraph 5 and provide to Lessor upon request.

Paragraph 6: Land Use

6.1. Only Authorized Uses. Lessee will use the Lease Premises only for the purposes stated in this Lease. Any additional uses or Improvements require separate Packet Pg. 270 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

authorization from Lessor. Lessee must submit a separate application to Lessor to amend this Lease if Lessee intends to add to or alter the Improvements on, or change the uses of, the Lease Premises.

6.2. Lessee to Comply with All Applicable Laws. Lessee, at Lessee’s sole expense, will comply with all Applicable Laws. Lessee must give Lessor immediate written notice on Lessee’s becoming aware that the use or condition of the Lease Premises is in violation of any Applicable Laws. Lessee must obtain and maintain all permits or other entitlements.

6.3. Lease Does Not Substitute for Permits. This Lease does not substitute for or provide preference in obtaining approval from other federal, state, or local agencies. Lessee is solely responsible for determining what approvals, authorizations, or certifications are required, and will be solely responsible for all costs incurred thereby.

6.4. No Discrimination. Lessee, in its use of the Lease Premises, must not discriminate against any person or class of persons on any basis protected by federal, state, or local law.

6.5. “As Is.” Lessee accepts the Lease Premises “as is” and acknowledges that:

6.5.1. Lessor, including its officers and employees, made no representations or warranties as to the suitability of the Lease Premises for any uses authorized under this Lease. Lessee is solely responsible for determining the suitability of the Lease Premises for any proposed use or Improvements; and

6.5.2. Lessor, including its officers and employees, has made no representations or warranties as to the quality or value of any Improvements found on the Lease Premises, or of their conformity to Applicable Laws. Lessee agrees to inspect any preexisting Improvements at its own cost to determine whether such Improvements are safe and suitable for the Lessee’s intended use; and

6.5.3. Damage to or destruction of any Improvements on the Lease Premises by any cause whatsoever does not entitle Lessee to any reduction in rent or extension of this Lease; and

6.5.4. Any Improvements on the Lease Premises are considered personal property and not fixtures; and

6.5.5. Lessee accepts the hazards involved in using or improving such lands.

Lessor is not responsible for any damages or reduced use of the Lease Premises caused by: local or invasive flora or fauna, flooding, erosion, climate change, Packet Pg. 271 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

sea level rise, storms, freezing, inclement weather of any kind, acts of god, maintenance or failure of protective structures, and any other such hazards.

Lessee will not be reimbursed or receive offset of rent for such hazards; and

6.5.6. The Lease Premises may be subject to pre-existing contracts, leases, licenses, easements, encumbrances, and claims. The Lease is made without warranty by Lessor of title, condition, or fitness of the land for the stated or intended purpose.

6.6. Uses Inconsistent with the Public Trust Prohibited. Unless specifically authorized in this Lease, any use of the Lease Premises which is inconsistent with the Public Trust is prohibited when the Lease Premises are lands subject to the Public Trust.

Paragraph 7: Climate Change

7.1. Lessee acknowledges that the Lease Premises and adjacent upland may be subject to the hazards exacerbated by climate change, including sea level rise. Potential hazards to the Lease Premises from climate change include but are not limited to flood damage, erosion damage, earthquakes, tsunamis, and damage from waves and storm-created debris. Lessee acknowledges that these impacts associated with climate change may require additional adaptation or protection strategies applied to the improvements on the Lease Premises and additional maintenance.

7.2. Lessee assumes the risks associated with such potential hazards and agrees to be solely responsible for all damages, costs, and liabilities arising as a result of the impacts of such hazards on the Lease Premises. Any additional maintenance or protection strategies necessitated by such hazards may be subject to environmental review and require additional approval by the Lessor.

7.3. Lessee shall conduct monitoring reports within the first three years of lease execution or construction, and at five-year intervals thereafter for the life of the project; and shall also provide Lessor with monitoring reports following any extreme event, including, but not limited to: extreme tide event (including King Tides), earthquake, or tsunami that results in the declaration of a Local Emergency or a State of Emergency (as defined in Cal. Gov. Code § 8558) or a federal Emergency or Major Disaster (as defined in 44 C.F.R. § 206.2).

Paragraph 8: Environmental Matters

8.1. Lessee to Comply with Environmental Laws. Lessee, at its sole cost and Packet Pg. 272 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

expense, will comply with all Environmental Laws.

8.2. Hazardous Materials. Lessee will immediately notify Lessor of any known violation of any Environmental Laws, along with any action, claim, demand, inquiry, or order relating to a violation of Environmental Laws on the Lease Premises. Lessee must immediately provide copies of all related documents upon Lessor’s request. Lessee must immediately notify Lessor and the appropriate governmental emergency response agency, or agencies in the event of any release or threatened release of any Hazardous Material on or about the Lease Premises.

8.3. Cleanup of Hazardous Materials. If Hazardous Materials are located on or released onto or about the Lease Premises due to Lessee’s activities on the Lease Premises, the Lessee is responsible for the cleanup and disposal of such Hazardous Materials consistent with all Applicable Laws. Lessee must submit a site assessment and removal/remediation plan prepared by a professional, licensed and qualified to remove or remediate the Hazardous Materials for review and approval by Lessor. If Lessor approves the plan in writing, Lessee must commence the removal/remediation at its sole expense, in conformance with all Applicable Laws. Alternately, Lessor may elect to perform the removal/remediation at Lessee’s expense. Lessee must compensate Lessor for the actual cost of the removal/remediation within thirty (30) days of receiving a written invoice from Lessor.

8.4. Inspection. Lessee will permit Lessor or its agents to enter the Lease Premises on 24-hour notice to inspect, monitor, or take remedial action with respect to Hazardous Materials. If Hazardous Materials are generated, stored, or transported on the Lease Premises, Lessor may require Lessee to conduct an independent environmental site assessment or inspection for the presence or suspected presence of Hazardous Materials. If this assessment or inspection is required, Lessor will be allowed to review and approve the contractor, and the work will be done at Lessee’s expense.

8.5. Conservation. Lessee will cooperate with and participate in conservation programs for water, electricity, composting, natural gas and recycling programs, including those for the collection of cardboard, metals, plastics, and glass at Lessee’s expense.

Paragraph 9: Repairs, Major Repairs, and Alterations

9.1. Lessee Required to Perform Repairs. Lessee is solely responsible for Packet Pg. 273 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

maintaining the Lease Premises, including all Improvements, in good order and repair and in a clean, safe, sanitary, and orderly condition. Lessee is not required to get Lessor’s advanced approval for routine Repairs.

9.2. Major Repairs Require Lessor Approval. Lessee must obtain Lessor’s advanced written approval prior to conducting any Major Repairs. The decision whether a Repair is a Major Repair, and the decision whether a lease amendment is necessary, will be made by Lessor and based on the scope, cost, and impacts of the work.

9.3. Alterations Require Lessor Approval. Any material change in the size, scope, density, type, nature, or intensity of Improvements on or uses of the Lease Premises from what is authorized in this Lease will be considered an Alteration.

Lessee may not conduct any Alterations without a modification of this Lease approved by Lessor. The decision whether a change constitutes an Alteration will be made by Lessor and based on the individual facts.

9.4. Improvements in Disrepair or Unsafe Condition. Lessee’s failure to maintain the Lease Premises or Improvements that have become unsafe or derelict entitle Lessor to require removal under Paragraph 14. After providing notice and opportunity to cure, Lessor may require submission of a written plan to restore the Lease Premises under Paragraph 14. Lessee’s failure to comply shall entitle Lessor to terminate this Lease, remove the Improvements from the Lease Premises and recover the costs incurred in doing so from the Lessee.

Paragraph 10: Lessor’s Reservation of Rights

10.1. Non-Exclusive Lease. Lessee’s right of occupancy is non-exclusive. Lessee may control access to the Improvements on the Lease Premises. Unless otherwise stated in this Lease, Lessee may exclude persons from the Lease Premises only when their presence or activity constitutes a material interference with the Authorized Use of the Lease Premises.

10.2. Lessee Responsible for Impacts to Natural Resources and Public Trust Uses.

When the Lease Premises include school lands or sovereign lands, the Lessee is responsible for any damage or adverse impacts to Natural Resources within or adjacent to the Lease Premises. It is the intention of Lessor to limit the transfer of rights under this lease to the minimum level required to carry out the primary purpose of the Lease. Lessee’s use of the Lease Premises must minimize impacts to the Public Trust if the Lease Premises are subject to the Public Trust. Lessee must not interfere with public access or Public Trust uses authorized under statute Packet Pg. 274 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

and common law.

10.3. Mineral Resources. Mineral Resources may not be removed from the Lease Premises unless specifically authorized under this Lease. Lessee shall not extract, sell, damage, or use Mineral Resources found within the Lease Premises without specific authorization under this Lease. Lessor reserves the right to grant and transfer Mineral Resources along with the right to grant leases to third parties in and over the Lease Premises for the extraction of such Mineral Resources. Such leasing will not be inconsistent or incompatible with the rights or privileges of Lessee under this Lease.

10.4. Right to Inspect. Lessor reserves the right to inspect the Lease Premises. If access to the Lease Premises is reasonably accomplished by passing through adjacent property owned by Lessee, Lessor shall provide 24-hour notice prior to entry and Lessee shall grant such entry for inspection of the Lease Premises.

10.5. Statutory Reservations. Lessor reserves to the public an easement across the Lease Premises complying with Public Resources Code section 6210.4 and Public Resources Code section 6210.5.

10.6. Multiple Overlapping Leases Allowed. Lessor reserves the right to lease, convey, or encumber the Lease Premises, in whole or in part, during the Lease term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease.

Paragraph 11: Indemnity

11.1. Lessee’s Sole Risk. Lessee’s use of the Lease Premises and any Improvements thereon, including use by guests and invitees, is at Lessee’s sole and exclusive risk.

11.2. Lessee to Indemnify Lessor. Except to the extent caused by the sole negligence or willful misconduct of the Lessor, Lessee shall indemnify, hold harmless, and, at the option of Lessor, defend Lessor, its officers, agents, and employees from any and all Damages resulting from Lessee’s occupation and use of the Lease Premises. Lessee shall reimburse Lessor in full for all reasonable costs and attorneys’ fees, specifically including, without limitation, any Damages arising by reason of: (1) The issuance, enjoyment, interpretation, or breach of this Lease; (2) The challenge to or defense of any environmental review upon which the issuance of this Lease is based; (3) The death or injury of any person, or damage to or destruction of any property from any cause whatever in any way connected with the Lease Premises, or with any of the Improvements or personal Packet Pg. 275 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

property on the Lease Premises; (4) The condition of the Lease Premises, or Improvements on the Lease Premises; (5) An act or omission on the Lease Premises by Lessee or any person in, on, or about the Lease Premises; (6) Any work performed on the Lease Premises or material furnished to the Lease Premises; (7) Lessee’s failure to comply with any Applicable Laws or violation of any Environmental Laws; (8) The costs for any cleanup or other response costs relating to the release or threatened release of Hazardous Materials on the Lease Premises during Lessee’s occupation of the Lease Premises. This obligation includes any prior leases between Lessee and Lessor and will continue until Lessee has performed all duties under Paragraph 14.

11.3. Lessor Not Required to Defend. Lessor need not defend itself against all or any aspect of any challenge to this Lease or any associated environmental review. However, Lessee may take whatever legal action is available to it to defend this Lease or any associated environmental review against any challenge by a third party, whether or not Lessor chooses to raise a defense against such a challenge.

11.4. Lessee to Notify Lessor. Lessee shall notify Lessor immediately in case of any accident, injury, or casualty on the Lease Premises.

Paragraph 12: Assignment, Encumbrance, or Sublet

12.1. Lessor’s Consent Required for Assignment. Lessee shall not mortgage; hypothecate; encumber; assign; sublet; enter into franchise, license, or concession agreements; or otherwise transfer all or part of this Lease (collectively “Assign” or “Assignment”) without Lessor’s advanced and expressed consent at a properly noticed public meeting. Any purported Assignment without Lessor’s consent will be void and of no force or effect and will not confer any estate or benefit on anyone. A consent to one Assignment by Lessor will not be deemed to be a consent to any subsequent Assignment by or to any other party.

12.2. Lessee Actions Not Considered Assignments. If Lessee is a public corporation whose stock is traded on a nationally recognized stock exchange, sale or transfer of such stock is not an Assignment.

12.3. Procedures. If Lessee desires to Assign this Lease, Lessee will apply to Lessor for the proposed Assignment. The Assignment will be considered by Lessor at a public meeting. Lessor may require any of the following in considering consent of an Assignment: (a) the nature, effective date, terms, and conditions of the assignment; (b) a description of the identity, net worth, and previous business Packet Pg. 276 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

experience of the proposed assignee; (c) a complete business plan prepared by the proposed assignee; and (d) any further information relevant to the proposed Assignment that Lessor reasonably requests. Lessor may either (i) consent to the proposed Assignment; (ii) refuse to consent to the proposed Assignment; or (iii) determine that it is preferable to terminate this Lease and issue a new lease to the proposed assignee.

12.4. Standard for Consent. Lessor may refuse its consent to the proposed Assignment on any reasonable grounds. Reasonable grounds include, without limitation: (a) the proposed assignee intends to use the Lease Premises for different activities or uses than those set forth in Section 1; (b) the proposed assignee’s financial condition is deemed by Lessor to be inadequate to support the financial and other obligations of Lessee under this Lease; (c) the business reputation or character of the proposed assignee is not reasonably acceptable to Lessor; (d) the proposed assignee is not likely to conduct a business of a quality substantially equal to that conducted by Lessee; (e) the proposed assignee’s planned use of the Lease Premises would increase the burden on the Lease Premises, involve an increased risk of the presence, use, release, or discharge of Hazardous Materials; or (f) Lessor has not received adequate assurance that all breaches will be cured before the effective date of the proposed Assignment.

12.5. Additional Terms. Lessee’s Assignment of the Lease does not release Lessee from liability for any Hazardous Materials or ordinance manufactured, generated, used, placed, disposed, stored, or transported on the Lease Premises during Lessee’s tenancy. An unauthorized assignment does not relieve Lessee from its covenants and obligations under this Lease. Lessor’s acceptance of any payment due under this Lease from any person other than Lessee will not be deemed to be a waiver by Lessor of any provision of this Lease or to be a consent to any Assignment.

12.6. Bankruptcy. If Lessee files a petition or an order for relief is entered against Lessee under the Bankruptcy Code (11 U.S.C. § 101, et seq.), then the trustee or debtor-in-possession must elect to assume or reject this Lease within sixty (60) days after filing of the petition or appointment of the trustee, or as that deadline may be extended by order of the court, or the Lease shall be deemed to have been rejected and Lessor shall be entitled to immediate possession of the Lease Premises. No assumption or assignment of this Lease shall be effective unless it is in writing and unless the trustee or debtor-in-possession has cured all breaches of Packet Pg. 277 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

this Lease (monetary and non-monetary) or has provided Lessor with adequate assurances (a) that within ten (10) days from the date of such assumption or assignment, all monetary breaches of this Lease will be cured; and (b) that within thirty (30) days from the date of such assumption, all non-monetary breaches of this Lease will be cured; and (c) that all provisions of this Lease will be satisfactorily performed in the future.

12.7. Permitted Assignments. The following Assignments are permitted under this Lease without Lessor’s consent: (a) Assignment caused by the death of a spouse where the full interest of the deceased spouse is Assigned to a surviving spouse who is a co-lessee on this Lease, provided Lessor is notified in writing within thirty (30) days of the assignment; (b) assignment caused by the dissolution of the marriage of Lessee when the full interest of one spouse is assigned to the other spouse who is a co-lessee on this Lease, provided Lessor is notified in writing within thirty (30) days of the transfer; and (c) substitution or succession of a new trustee if the Lease is held in trust and the Lessee is a trustee or successor trustee thereof, provided Lessor is notified in writing no later than sixty (60) days after the named trustee as appears on the face of this Lease becomes unable or ceases to serve as trustee for any reason.

12.8. Lessee Remedies. If Lessor withholds or conditions its consent and Lessee believes that Lessor did so contrary to the terms of this Lease, then Lessee’s sole remedy will be to prosecute an action for declaratory relief to determine if Lessor properly withheld or conditioned its consent, and Lessee hereby waives all other remedies.

Paragraph 13: Breach

13.1. Events of Breach. All covenants and agreements contained in this Lease are declared to be conditions to this Lease. Lessee’s failure to pay rent when due or any other charges under this Lease for five (5) days after written notice from Lessor to Lessee will be considered a monetary breach. Lessee’s failure to perform any other promise, covenant, or agreement under this Lease for more than thirty (30) days after written notice from Lessor to Lessee will be considered a non-monetary breach. If a non-monetary breach cannot be cured within the thirty (30)-day period, the breach will be deemed to be cured if Lessee begins to cure the breach within the thirty (30)-day period and continues to diligently complete the cure.

13.2. Breach of Lease. Lessor shall provide written notice to Lessee specifying the Packet Pg. 278 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

particulars of the breach. Should Lessee fail to cure the breach within the period specified in Paragraph 13.1, then Lessor may elect to pursue any available remedies under law, or those specified in paragraph 13.3, below.

13.3. Remedies on Breach of Lease. In addition to any other rights or remedies at law or equity, Lessor may, without further notice, (a) terminate this Lease, reenter and take possession of the Lease Premises and remove all persons and all Improvements therefrom at Lessee’s cost; or (b) keep this Lease in effect without declaring this Lease terminated and without terminating Lessee’s right to possession, reenter the Lease Premises and occupy the whole or any part for and on account of Lessee and collect any unpaid rentals and other charges that have become payable or that may thereafter become payable; or (c) terminate this Lease after reentering the Lease Premises as provided in subclause (b) above. Any notice required to be given by Lessor above will be instead of, and not in addition to, any notice required under the laws of the State of California.

13.4. Determination of Rental Value. If rent under this Lease is calculated as percentage of Lessee’s income attributable to the Lease Premises and Lessee abandons the Lease Premises, then the reasonable rental value shall be the percentage of proceeds Lessor would have received had Lessee operated the Lease Premises in the usual and customary manner.

13.5. Acceptance of Rent When Lessee is in Breach. Lessor’s acceptance of any rent shall not be considered a waiver of any preexisting Breach by Lessee other than the failure to pay the particular rent accepted regardless of Lessor’s knowledge of the preexisting Breach at the time rent is accepted, unless the breach was a monetary breach and the payment occurs during the cure period specified in Paragraph 13.1.

13.6. Acceptance of Payments After Lease Termination. Lessee’s submission or Lessor’s acceptance of any payments after the expiration or termination of this Lease shall not reinstate or extend this Lease. Lessor may elect to retain any payment submitted and apply these payments to offset any damages claimed against Lessee; or Lessor may elect to allow a holdover tenancy under Paragraph 14.6; or Lessor may elect to refund the payments less a reasonable handling fee.

13.7. Waiver of Rights. The failure or delay of either party to exercise any right or remedy shall not be construed as a waiver of such right or remedy or any Breach by the other party.

Packet Pg. 279 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

Paragraph 14: Conditions of Lease Termination

14.1. Use of State Land. This Lease authorizes the use or occupation of state land for a fixed term of years without options or rights of renewal. Lessee accepts that future leases authorizing the continued existence of any Improvements constructed or maintained by Lessee on the Lease Premises are subject to a discretionary action of the California State Lands Commission. Submission of an application for a new lease does not guarantee a new lease will be granted to Lessee. Lessee acknowledges that construction of Improvements on the Lease Premises and investment in or obtaining financing for the uses authorized under this Lease is done in full understanding that future leases are not guaranteed.

Lessee also affirmatively represents that the cost of removing Improvements was considered before entering into this Lease and placing or assuming any Improvements on state land.

14.2. Abandonment. Lessee’s right of access to the Lease Premises was a material consideration in Lessor issuing this Lease. If, without prior notice to Lessor, Lessee sells, abandons, or loses title to the upland property adjacent to the Lease Premises, or otherwise loses the legal right to access the Lease Premises, Lessor may deem this an abandonment of the Lease Premises. Lessee must actively maintain and manage any Improvements authorized by this Lease. Should Lessee discontinue use, management, or maintenance of the authorized Improvements, Lessor may deem this an abandonment and elect to terminate the Lease. Alternately, Lessor has the remedy described in California Civil Code section 1951.4 (Lessor may continue lease in effect after Lessee’s breach and abandonment and recover rent as it becomes due if Lessee has right to sublet or assign, subject only to reasonable limitation). Abandonment of the Lease Premises shall not relieve Lessee of any obligations under this Lease.

14.3. Restoration. In issuing this Lease it is Lessor’s understanding that all Improvements will be removed from state land at the expiration or termination of this Lease. If Lessee abandons the Lease Premises, or Lessor terminates this Lease, or this Lease expires without execution of a new lease authorizing Lessee’s use of the Lease Premises, Lessee must: 1) remove all Improvements regardless of whether Lessee constructed or placed Improvements together with all debris at its sole expense and risk, restoring the Lease Premises to as close as possible to an unimproved condition to Lessor’s satisfaction; and 2) immediately surrender possession of the Lease Premises. Lessor may, in its sole discretion, allow all or any portion of the Improvements to remain in place. In Packet Pg. 280 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

carrying out this obligation, Lessee acknowledges that further authorizations, review of the Restoration Plan, and environmental review may be necessary as outlined in Section 14.4 below.

14.4. Two Years Prior to Expiration. (A) If Lessee desires to continue the uses authorized under this Lease, Lessee shall submit an application together with all required fees at least two years prior to the expiration of this Lease. Submission of an application does not guarantee a new lease will be granted to Lessee. (B) If Lessee does not desire to occupy the Lease Premises beyond the term of this Lease, then two years prior to the expiration of this Lease, Lessee shall submit an application, including a detailed plan to remove all Improvements and restore the Lease Premises to the condition existing prior to the installation or construction of any Improvements. The plan must include a timeline for obtaining all necessary permits. The restoration plan may require a subsequent environmental review and approval from Lessor. (C) Lessor may modify annual rent, surety and insurance within the last two years of the Lease.

14.5. Failure to Restore Lease Premises. Lessee’s failure to remove improvements, restore the Lease Premises, or surrender possession of the Lease Premises at the expiration or sooner termination of this Lease shall not constitute a renewal or extension and shall not give Lessee any rights in or to the Lease Premises or any part thereof. Lessee shall not be entitled to any compensation for Improvements left on the Lease Premises at the termination or expiration of this Lease. Lessor may, in its sole discretion, elect to treat the Improvements as abandoned and remove all or any portion of Improvements from the Lease Premises. Lessee’s failure to adequately restore the Lease Premises imposes significant financial liability on Lessor. As a result, Lessee shall be responsible for all expenses incurred by Lessor in restoring the Lease Premises, including, without limitation, staff time, environmental work or permitting, contractor costs, and reasonable attorney’s fees.

14.6. Holdover. This Lease terminates without further notice at the end of its term.

Lessor may, in its sole discretion, choose to accept Rent for the Lease Premises and allow a period of holdover tenancy. Any holdover tenancy shall be on a month-to-month basis. Lessee’s submittal of annual rent during holdover does not constitute tenancy longer than month-to-month. Any holdover tenancy shall be on the same terms as this Lease insofar as such terms can be applicable to a month-to-month tenancy. The rent for each month or any portion thereof during such holdover period is one hundred fifty percent (150%) of one-twelfth (1/12) of Packet Pg. 281 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

the total compensation for the most recent year paid. The month-to-month tenancy may be terminated by Lessor upon thirty (30) calendar days’ prior written notice to Lessee.

14.7. Holdover on Leases with No Monetary Consideration. In the event this Lease does not require monetary consideration, 14.6 shall continue to apply, and in addition: 1) Lessor shall have the right to establish rent based on the fair market value of the Lease Premises, and 2) In no way shall the prior lease consideration limit damages for trespass.

14.8. Quitclaim. In the event this Lease is terminated prior to expiration, Lessee shall deliver a quitclaim of all rights under this Lease to Lessor on request. Lessee shall execute and deliver such quitclaim to Lessor in a form provided by Lessor.

Should Lessee fail or refuse to deliver such a release, Lessor may record a written notice reciting such failure or refusal. This written notice shall, from the date of its recordation, be conclusive evidence against Lessee of the termination of this Lease and all other claimants.

Paragraph 15: Additional Provisions

15.1. Conflict in Terms. In the case of any conflict between these General Provisions and Special Provisions found in Section 2, the Special Provisions control.

15.2. Boundaries. This Lease does not establish the State's boundaries in so far as it relates to land and resource jurisdiction and ownership and is made without prejudice to either party regarding any land and water boundary or title claims which may be asserted presently or in the future.

15.3. No Waiver. Lessor’s acceptance of a late or nonconforming performance shall not constitute a waiver unless such waiver is expressly acknowledged by Lessor in writing. Lessor’s delay in or omission to exercise any right under this Lease shall not constitute a waiver.

15.4. Time is of the Essence. Time is of the essence for this Lease and each and all of its terms, covenants or conditions in which performance is a factor.

15.5. Notice. All notices required to be given under this Lease shall be given in writing, sent by U.S. Mail or other reputable private carrier with postage prepaid, to Lessor at the offices of the State Lands Commission and the Lessee at the address specified in this Lease. Lessor’s staff and Lessee may agree to accept any notice by electronic mail. Lessee shall give Lessor notice of any change in its Packet Pg. 282 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

name or address.

15.6. Consent. Lessor’s consent to one transaction or event shall not be deemed to be a consent to any subsequent occurrence.

15.7. Changes. This Lease may only be amended, revised, or supplement by written agreement of the Parties.

15.8. Joint and Several Obligation. If more than one Lessee is a party to this Lease, the obligations of the Lessees shall be joint and several.

15.9. Captions. The section and paragraph captions used in this Lease are for the convenience of the Parties. The captions are not controlling and shall have no effect upon the construction or interpretation of this Lease.

15.10. Severability. If any term, covenant, or condition of this Lease is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall remain valid and enforceable to the fullest extent permitted by law.

15.11. Representations. Lessee agrees that no representations have been made by Lessor or by any person or agent acting for Lessor except those stated in this Lease. This document contains the entire agreement of the Parties. No verbal agreements, representations, warranties, or other understandings affect this Lease. Lessor and Lessee, as a material part of the consideration of this Lease, waive all claims against the other for rescission, damages, or otherwise by reason of any alleged covenant, agreement, or understanding not contained in this Lease.

15.12. Gender and Plurality. In this Lease, words importing any gender include any or all genders, and the singular number includes the plural whenever the context so requires.

15.13. Survival of Certain Covenants. All covenants pertaining to bond, insurance, indemnification, restoration obligations, breach or remedies shall survive the expiration or earlier termination of this Lease until Lessee has fulfilled all obligations to restore the Lease Premises as required by this Lease.

15.14. Counterparts. This agreement may be executed in any number of counterparts and by different Parties in separate counterparts.

15.15. Delegation of Authority. Lessor and Lessee acknowledge that Lessor as defined herein includes the Commission Members, their alternates or designees, Packet Pg. 283 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

and the staff of the Commission. The ability of staff of the Commission to give consent, or take other discretionary actions described herein will be as described in the then-current delegation of authority to Commission staff. All other powers are reserved to the Commission.

15.16. Successors. The terms, covenants, and conditions of this Lease shall extend to and be binding upon and inure to the benefit of the heirs, successors, and assigns of the respective parties.
[Remainder of the page left intentionally blank.]
Packet Pg. 284 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

STATE OF CALIFORNIA - STATE LANDS COMMISSION
LEASE NUMBER: 5213
This Lease shall become effective only when approved by and executed on behalf of the State Lands Commission of the State of California and Lessee. The submission of this Lease by Lessor, its agent, or representative for examination by Lessee does not constitute an option or offer to lease the Lease Premises upon the terms and conditions contained herein, or a reservation of the Lease Premises in favor of Lessee. Lessee's submission of an executed copy of this Lease to Lessor shall constitute an offer to Lessor to lease the Lease Premises on the terms and conditions set forth herein.

IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date hereafter affixed.

LESSEE: CITY OF REDDING
By: _____________________________
Title: _____________________________
Date: ____________________________
LESSOR: STATE OF CALIFORNIA

STATE LANDS COMMISSION
By: _____________________________
Robert Brian Bugsch
Title: Chief, Land Management___
Date: ____________________________
Execution of this document was authorized by the California State Lands Commission on _______________________________.

ATTACH ACKNOWLEDGMENT
Packet Pg. 285 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

EXHIBIT A
LEASE 5213

LAND DESCRIPTION
A strip of submerged lands, 161-feet wide, in the bed of the Sacramento River, adjacent on the right bank to P.B. Reading’s Grant and on the left bank to fractional Section 18, T. 31 N., R. 4 W., M.D.M., County of Shasta, State of California, lying 75 feet southerly and 86 feet northerly of the following described centerline:

COMMENCING at Shasta County centerline monument, “L” E.C. 152+91.63, as shown on “Amending Record of Survey of South Bonnyview Road (3G100)”, filed November 4, 1976, in Book 41 of Land Surveys at Page 26, Shasta County Records; thence N 45° 22’ 25” E 1132.49 feet to Shasta County centerline monument, “L” B.C. 164+24.12, as shown on said Record of Survey, also being the POINT OF BEGINNING of said centerline; thence, along a curve to right, having a radius of 999.88 feet and an arc length of 982.24 feet to Shasta County centerline monument, “L” E.C. 174+06.36, as shown on said Record of Survey, and the TERMINUS of said centerline.

The sidelines of said strip shall be prolonged or shortened as to begin and terminate at the low water of the left and right banks of the Sacramento River.

EXCEPTING THEREFROM any portion lying landward of the low water of the left and right banks of the Sacramento River.

END OF DESCRIPTION
Prepared 04/27/2022 by the California State Lands Commission Boundary Unit.

JAMES A . KOEPKE
P
R
O

FE S S I ONAL LAND
SURVEY
O
R

STATE OF CAL I FORN I N
A
o . 84 87
Packet Pg. 286 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge)

SACRAMENTO
RIVER
LEASE
AREA
APPROX.

SHORELINE
APPROX.

SHORELINE
S. BONNYVIEW RD.

LEASE 5213

CITY OF REDDING
APNs: 070-320-006 &
048-400-004

GENERAL LEASE -

PUBLIC AGENCY USE

SHASTA COUNTY
MAP SOURCE: USGS QUAD

SOUTH BONNYVIEW ROAD BRIDGE, NEAR CITY OF REDDING

THIS EXHIBIT IS SOLELY FOR PURPOSES OF GENERALLY DEFINING

THE LEASE PREMISES, IS BASED ON UNVERIFIED INFORMATION

PROVIDED BY THE LESSEE OR OTHER PARTIES AND IS NOT INTENDED

TO BE, NOR SHALL IT BE CONSTRUED AS, A WAIVER OR LIMITATION OF ANY STATE INTEREST IN THE SUBJECT OR ANY OTHER PROPERTY. TS 04/27/2022 NO SCALE Exhibit B

NO SCALE SITE

LOCATION
SITE
SITE
N
N
Packet Pg. 287 Attachment: State of California Lease 5213 (4.11(d)--Approve California State Lands Commission Lease for the South Bonnyview Bridge) Packet Pg. 288
Attachment: NOE Lease Agreement State Lands Commission (4.11(d)--Approve California State Lands Commission Lease for the South

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the Mayor to execute a Subdivision Agreement with Sierra Pacific Land and Timber Company; and approve the final map for Silverstone Subdivision, Unit 3 (AMND-2020- 01135/S-2019-00280), thereby, instructing the City Clerk to file the map with the Shasta County Recorder.

Fiscal Impact
There will be cumulative impacts to the City of Redding’s (City) Public Works Department due to the increase in public street infrastructure requiring annual maintenance, especially the asphalt pavement. The project will generate an incremental increase in State of California gas-tax funds based on population and point-of-origin sales; however, the increase in these revenues falls short of the anticipated annualized maintenance cost.

In addition, there will be an incremental increase in the City’s utility costs due to the additional infrastructure. Generally, except for the Storm-Drain Utility, sufficient revenue is generated by monthly use charges to offset any increase in annual maintenance costs. The Storm-Drain Utility is pressed with increasing requirements that current rates do not cover.

Alternative Action
The City Council (Council) may choose not to accept the improvements. Under this alternative, the City would be inconsistent with a long-standing policy of maintaining streets and infrastructure following the completion of the improvements in accordance with the City Construction Standards.

MEETING DATE: August 20, 2024
ITEM NO. 4.11(e)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(e)--Approve Final Map and Execute Subdivision Agreement for Silverstone Subdivision, Unit 3 (AMND-2020-01135, S-2019-00280)
Michael Webb, Public Works
Director
Packet Pg. 289
Report to Redding City Council August 14, 2024
Re: 4.11(e)--Final Map-Silverstone Subdivision, Unit 3 Page 2 Background/Analysis
The Silverstone Subdivision, Unit 3 (AMND-2020-01135/S-2019-00280) was approved by the Planning Commission on September 22, 2020. Attached is a map showing the subdivision, which is located south of Rancho Road and Shasta View Drive.

The developer, Sierra Pacific Land and Timber Company, has submitted the final map and all other required data which has been checked and approved by various City Departments. Relevant subdivision map conditions of approval have been met with the exception of some portions of roadway conditions (placing asphalt concrete, striping, pouring curb/gutter/sidewalk, centerline monument survey, street name signs, utility manholes, street lights and valve grade adjustments).

The developer has agreed to the execution of a Subdivision Agreement, has committed to completing these conditions, and has submitted a related security in the amount of $157,805 for the remaining work. The developer has been informed that no occupancy permits will be granted for residences constructed on lots until all related Subdivision Agreement conditions have been met.

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

Environmental Review
On April 5, 2005, Council held a public hearing and adopted Resolution 2005-048 certifying the completeness and adequacy of EIR-01-03, thereby satisfying the requirements of the California Environmental Quality Act. No further action is necessary.

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

Attachments
^Silverstone Unit 3 - Location Map
Subdivision Agreement
Final Map
Performance Bond
Packet Pg. 290
Packet Pg. 291
Attachment: ^Silverstone Unit 3 - Location Map (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 292
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 293
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 294
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 295
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 296
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 297
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 298
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 299
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 300
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 301
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 302
Attachment: Subdivision Agreement (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 303
Attachment: Final Map (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 304
Attachment: Performance Bond (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 305
Attachment: Performance Bond (4.11(e)--Final Map-Silverstone Subdivision, Unit 3) Packet Pg. 306
Attachment: Performance Bond (4.11(e)--Final Map-Silverstone Subdivision, Unit 3)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the City Manager to submit a Shasta Regional Transportation Agency Carbon Reduction Program grant application in an amount not to exceed $995,265.

Fiscal Impact
If the City of Redding (City) is successful in obtaining Shasta Regional Transportation Agency (SRTA) Carbon Reduction Program (CRP) grant funds, it would receive up to $995,265 with a required minimum local match of 11.47 percent. Local match funds will consist of Public Works - Streets Funding. If the City is awarded grant funds, staff will present the award and match proposal to the City Council (Council) for consideration at a later date.

The entire project cost for this corridor is estimated at approximately $1.5 million. If the City receives and accepts funding, the remaining amount needed for the project will be provided out of the streets budget.

Alternative Action
The Council could decline to authorize the CRP application and the City would miss the opportunity to receive grant funding for projects which do not have adequate streets funds to complete construction.

Background/Analysis
The SRTA CRP is a competitive program created under the Federal Infrastructure Investment and Jobs Act of 2021 and aims to reduce transportation carbon dioxide emissions from on-road sources. The program is funded by an allocation of $6.4 billion dollars then distributed by formula to state departments of transportation and metropolitan planning organizations between 2022 through 2026. In Fiscal Years 2024, 2025 and 2026, SRTA received CRP funding totaling MEETING DATE: August 20, 2024
ITEM NO. 4.11(f)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4.11(f)--Authorize Submission of Grant Application to Shasta Regional Transportation Agency (SRTA) Carbon Reduction Program (CRP) Michael Webb, Public Works
Director
Packet Pg. 307
Report to Redding City Council August 15, 2024
Re: 4.11(f)--Grant Application - Carbon Reduction Program Page 2 $995,265 and offers awards to eligible applicants. The program goal is to select projects that support the reduction of transportation emissions with new bicycle and pedestrian facilities, rail and transit, zero-emissions vehicles and infrastructure as well as conversions of existing lanes to price managed lanes.

At its regular meeting on December 17, 2019, Council authorized the Mayor to execute a Consultant and Professional Services Contract with TJKM Transportation Consultants (TJKM) to provide engineering services for the creation of the Park Marina Corridor Plan. Staff has worked with TJKM to complete all necessary tasks, but the project was placed on hold as the Riverfront Specific Plan was initially developed. Staff has now determined that the short-term plan to repave the corridor will not conflict with the long-term Specific Plan goals. Staff intends to bring the corridor plan to Council for adoption in the coming months. The corridor plan identified projects to accomplish the movement of vehicular, pedestrian and bicycle related traffic within the existing Park Marina Drive paved section. SRTA recently sent out for the call for projects on July 31, 2024, that required the grant applications by August 23, 2024. Staff recognized this as an immediate opportunity for multi-year funding to help prepare for the upcoming needs along this corridor.

The City seeks $995,265, but would accept a lessor amount to complete the design and partially fund construction for a new project located along the Park Marina corridor as identified in the Park Marina Corridor Plan. The project is on Park Marina Drive, and would extend from the Park Marina overpass over State Route 44 to the Cypress Bridge overpass. This area is a priority for repaving, and the project would facilitate much needed improvements to the bike and pedestrian facilities along the Sacramento River. The bike lanes would likely be combined on the river side of the roadway in the form of a two-way cycle track, and be separated from traffic by a painted buffer zone with flexible delineator style bollards. The requested funding would provide pedestrians with new crosswalks over Park Marina Drive, where currently few exist, and add the additional bike facilities along the entire corridor.

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

Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” • Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Park Marina Dr Location Map
Previous Staff Report 12/17/19
Packet Pg. 308
Park
Ma
rin
a
D
r
Parkview Ave
South St
E Cypress Ave
Gold St
London
Ave
Knollcrest Dr
Rome Ave
Lincoln St
Sequoia St
Placer St
Athens Ave
Hemsted Dr
Washington
Ave
Paris Ave
Grove St
Lowe St
Ca
n
al Dr
Redcliff D
Civic Center Dr
Park Marina Cir
R
o
s
e
m
ary
Ave
Canal Dr
ÅÄ44
Locust St
MTG. DATE:

ITEM:

ATTACHMENT:

LOCATION MAP GIS DIVISION

INFORMATION TECHNOLOGY DEPARTMENT
DATE PRODUCED:
0 200 400 - Feet
P:\PLANNING\ProProjects\ParkMarina_LocMap
AUGUST 8, 2024

PARK MARINA DR
Packet Pg. 309 Attachment: ^Park Marina Dr Location Map (4.11(f)--Grant Application - Carbon Reduction Program)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following relative to Request for Proposal No. 5091, to provide engineering services for the creation of the Park Marina Drive Corridor Plan:
(1) Award to TJKM Transportation Consultants (TJKM) in an amount not to exceed $199,743.31.
(2) Authorize staff to negotiate a Consulting and Professional Services Contract with TJKM;
(3) Authorize the Mayor to execute the contract;
(4) Authorize the City Manager to approve contract amendments up to $25,000; and (5) Adopt Resolution approving and adopting the 19th Amendment to City Budget Resolution No. 2019-050 to accept the grant funds and appropriate $190,000 for the project.

Fiscal Impact
The total project cost is estimated to be $200,000. A Shasta Regional Transportation Agency (SRTA) planning grant will fund $190,000. The remaining $10,000 and any contingency amount will be funded with currently appropriated Streets funds.

Alternative Action
The City Council (Council) may choose not to award the contract for the purpose of preparing a corridor study for Park Marina Drive. The corridor study would not be created and $190,000 of planning grant funds would not be utilized.

Background/Analysis
On September 30, 2019, the Council authorized staff to request planning grant funds from SRTA MEETING DATE: December 17, 2019
ITEM NO. 4.11(f)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(f)--Award Request for Proposals No. 5091; Authorize Execution of Consulting and Professional Services Contract for the Engineering Services for creation of Park Marina Drive Corridor Plan; Adopt Budget Resolution Appropriating Funds for the Project.

Chuck Aukland, Public
Works Director
Packet Pg. 310 Attachment: Previous Staff Report 12/17/19 (4.11(f)--Grant Application - Carbon Reduction Program) Report to Redding City Council December 12, 2019
Re: 4.11(f)­­Award Request for Proposals No. 5091 Park Marina Plan Page 2 for the purpose of preparing a corridor study for Park Marina Drive (see attached staff report).

On October 25, 2019, a formal Request for Proposals (RFP) Schedule No. 5091, outlining the specific scope of services, was sent to multiple firms and posted on the City of Redding’s (City) Purchasing Division website.

A proposal selection panel was formed with five members from the City’s Engineering and Planning divisions , one person from the California Department of Transportation (Caltrans), and one person from SRTA. Two proposals were received, and based on the proposal review, the panel ranked the firms as follows:

Rank Firm
1 TJKM Transportation Consultants
2 GHD
Proposals were evaluated based on the consultants' understanding of the scope of work, ability to meet the proposed schedule, dedication to maintaining the project budget, experience and qualifications of the proposed staff and sub-consultants, ability to work with City staff, team experience with similar types of projects, and commitment to the project. Applying the criteria to the proposals, it is the opinion of the selection panel that TJKM is the most qualified team to provide the required services.

Following ranking of the proposals, staff reviewed the cost proposal submitted by TJKM. Although the RFP is a qualification based procurement process and not a public bid, staff reviews the cost proposal of the top ranked firm to determine if it is reasonable for the proposed services provided.

Staff determined the proposed costs are generally in line with pre-proposal estimates.

The proposed Agreement will be approved as to form by the City Attorney.

Council Priority/City Manager Goals
x Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges for today’s residents and workforce. Anticipate the future to make better decisions today.”
x Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
x 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.” x 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
Location Map - Park Marina Dr Corridor Plan
Park Marina Corrdidor Staff Report 09-30-19
Packet Pg. 311 Attachment: Previous Staff Report 12/17/19 (4.11(f)--Grant Application - Carbon Reduction Program)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve increases to the project budget in the amount of $825,000 for the completion of Bid Schedule No. 5293, Clear Creek Wastewater Treatment Plant Pyrolysis Phase I Project and to include the installation of Phase II Pyrolysis equipment as outlined below:
(1) Increase of $125,000 to Water Works Engineers and City of Redding construction management budget, bringing the construction management total to $920,000; (2) Increase of $700,000 to the construction contingency budget, bringing the construction contingency total to $1,095,000; and
(3) Authorize Public Works staff to negotiate and the City Manager to execute an Amendment to the Consulting and Professional Services Agreement with Water Works Engineers to increase the fee for construction management and inspection services in an amount not to exceed $75,000 (as included in item (1) of the overall $125,000 construction management budget).

Fiscal Impact
The project is funded by Public Works Wastewater Utility Capital Improvement Funds. The Clear Creek Wastewater Treatment Plant Pyrolysis Phase II Project was budgeted for $8,000,000 and identified in the City of Redding’s Capital Improvement Plan for 2024-25. By completing these projects together (Phase I and II), a significant cost savings has been realized.

Alternative Action
The City Council (Council) may choose not to approve the request and provide alternative direction to staff.

MEETING DATE: August 20, 2024
ITEM NO. 4.11(g)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(g)--Approve Increase to Project Budget for Clear Creek Wastewater Treatment Plant Pyrolysis Phase I to include installation of Phase II equipment.

Michael Webb, Public Works
Director
Packet Pg. 312
Report to Redding City Council August 14, 2024
Re: 4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1 Page 2
Background/Analysis
On August 2, 2022, the Council awarded the construction contract for the Clear Creek Wastewater Treatment Plant Pyrolysis Phase I Project (Project) to SnL Group, Inc. (SNL) for a total project cost of $3,927,250.

On July 18, 2023, in order to meet regulatory timelines, Council authorized $2,599,460 for the purchase of three additional biodryers to expand the pilot system to include the capacity of Phase II Pyrolysis, and authorized the installation of this equipment under the current contract Bid Schedule No. 5293 under a contract change order. Staff has negotiated with SnL and Water Works Engineers for the change order for the installation of the additional equipment.

Staff is requesting the following funds to complete the Pyrolysis Phase I contract to include the installation of Phase II equipment.

Phase II Equipment Installation $700,000
Construction Management and Contingency $125,000
Total Funds Requested $825,000
Environmental Review
On August 2, 2022, Council determined that the Project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301(b) - Existing Facilities, and Section 15303(d) New Construction or Conversion of Small Structures. No further action is required.

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

Attachments
^Location Map
Previous Staff Report 8-2-22
Previous Staff Report 7-18-23
Packet Pg. 313
Packet Pg. 314
Attachment: ^Location Map (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1)

CITYOFREDDING

REPORTTOTHECITYCOUNCIL
MEETING DATE: August 2, 2022 FROM: ChuckAukland, Public ITEM NO. 4.11(a) Works Director
APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(a)--Award BidSchedule No. 5293, JobOrderNo. 2665, ClearCreek Wastewater Treatment PlantPyrolysis Phase 1Project
Recommendation
Authorize thefollowing actions relative toBidSchedule No. 5293 (JobNo. 2665) Clear Creek Wastewater Treatment PlantPyrolysis Project Phase 1:
1) Award toSNLGroup, Inc., intheamount of $3,927,250;
2) Approve anadditional $795,000 tocoverthecostofadministration andinspection fees and $845,000forproject development costs;
3) Approve $395,000toprovide construction contingency funding; 4) Authorize theCityManager toapprove additional increases ineither theconstruction management orconstruction contingency amounts uptoatotalof $75,000; and 5) Findthattheproject iscategorically exempt fromreview under theCalifornia Environmental QualityActGuidelines, perSection 15301(b) - Existing Facilities, and Section 15303(d) NewConstruction orConversion ofSmall Structures.

Fiscal Impact
TheClear Creek Wastewater Treatment PlantPyrolysis Phase 1Project (Project) isbeing funded bytheWastewater Utility Funds. Sufficient funding fortheproject isavailable inthe2022-23 Wastewater Utility budget.

CostSummary
Item Estimated
Project Development Costs $ 845,000
Construction Contract + Contingency $ 4,322,250
Contract Administration, Inspection, andTesting $ 795,000 Additional CityManager Authority $ 75,000
TotalProject Costs $ 6,037,250
Packet Pg. 315 Attachment: Previous Staff Report 8-2-22 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) R-- 2
Project costcomponents areestimates andsome shifting oftheproject development and construction contingency funds maybenecessary tobalance theproject withintheapproved budget.

Alternative Action
TheCityCouncil maychoose tonotaward thebidfortheClearCreek Wastewater Treatment PlantPyrolysis Phase 1Project andprovide staffwithalternative direction. Without thisproject, staffwould needtopursue other alternatives tomanaging biosolids disposal atthetreatment plant. Thismaypresent regulatory, technical, andfinancial impacts totheWastewater Utility in thenearfuture.

Background/Analysis
TheClear Creek Wastewater Treatment Pyrolysis Phase 1Project isanaccepted project fromthe Wastewater Treatment Plant Biosolids Master Plan. TheCityCouncil authorized stafftosolicit engineering services todesign andconstruct thepilotscale project onOctober 6, 2020. The project isusinganemerging technology forthehandling anddisposal ofbiosolids atthe wastewater treatment plant. Thefollowing items areincluded inthescope ofthisproject:
installation ofbiodryers andpyrolysis units, installation ofconveyors andelevated support structure withwalkway foraccess andutility routing, installation ofatransformer andelectrical building, construction ofconcrete slabs, installation ofapre-engineered metal canopy, andsite workwhich includes yardpiping, grading, paving, fencing, andelectrical facilities.

Attached isatabulation ofbidsreceived andopened onJuly 19, 2022, fortheClearCreek Wastewater Treatment PlantPyrolysis Phase 1Project. Thelowbidintheamount of $3,927,250 wasreceived from SNLGroup, Inc., ofRedding, California. Theengineer'sestimate was 3,894,000. Totalproject development costs forthisproject areestimated tobe $845,000.

Project development costs include engineering, surveying, right-of-way, environmental, and consultant services. Total construction administration andinspection costs forthisproject are estimated tobe $795,000. Construction administration andinspection costs include stafftimeand theconsultant feereceived through RFPselection. Theconsultants feeincludes contract administration, inspection services, andapplication programming, which isunique tothis project. Staffwilloffer tothe Council approval oftheconsultant selection andexecution ofthe professional services agreement atalatermeeting priortothebeginning ofconstruction.

Staffhasreviewed theproject anddetermined thattheproject isCategorically Exempt from review undertheCalifornia Environmental Quality Act (CEQA) Guidelines, perSection 15301(b) - Existing Facilities andSection 15303 (d) NewConstruction orConversion ofSmall Structures. Class1exemptions include minor alteration ofexisting public facilities and equipment. Class3exemptions include theconstruction ofnewsmall facilities orstructures, and installation ofnewequipment. Theproject willresultinnegligible ornoexpansion ofuse, anda limited amount ofnewequipment andstructures willbeconstructed. Theproject hasbeen reviewed forsensitive resources andwillnothaveasignificant effect onbiological orcultural resources such asthreatened orendangered species ortheirhabitats, sensitive vegetation communities, tribal lands, ortribal cultural resources. Theproject hasnopotential tohavea significant effect ontheenvironment.

Packet Pg. 316 Attachment: Previous Staff Report 8-2-22 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) R--
3 Council Priority/CityManager Goals
Thisagenda itemisaroutine operational item.

Attachments
Location Map
Notice ofExemption
BidTabulation
StaffReport_October 2020
Packet Pg. 317 Attachment: Previous Staff Report 8-2-22 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1)

PYROLYSIS
Packet Pg. 318 Attachment: Previous Staff Report 8-2-22 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1)

NOTICE OFEXEMPTION
TO: Office ofPlanning andResearchFROM: CityofRedding
1400TenthStreet, Room 121Public Works Department
Sacramento, CA95814777 Cypress Avenue
Redding, CA96001
Shasta County Clerk
County ofShasta
P.O. Box990880, 1643Market Street
Redding, CA96099-0880
Project Title:Biosolids Pyrolysis attheClear Creek Wastewater Treatment PlantProject JO# 2637-10 Project Location –Specific:2220MetzRoad
Project Location –City:Redding Project Location –County:Shasta Description ofProject:TheCityofRedding willconstruct apilot-scalebiosolids pyrolysis project located attheClear Creek Wastewater Treatment Plant (CCWWTP). Operation ofapilot-scale facility isanimportant stepinmeeting regulatory goals (e.g., Senate Bill \[SB\] 1383) andestablishing apermanent solution forthedisposal ofbiosolids.

Construction willoccurwithin theexisting CCWWTP facility andwillinvolve vegetation removal; earthwork; trenching; installation ofsubsurface utilities; construction ofconcrete pads, shade structures, access road, fencing; modification of existing equipment; andinstallation ofnewpyrolysis, biodryer, andelectrical equipment.

NameofPublicAgency Approving Project:CityofRedding
NameofPerson orAgency Carrying OutProject: JoshVandiver, Wastewater Utility Manager Exempt Status:(check one)
Ministerial \[Section 21080(b)(1); 15268\]
Declared Emergency \[Section 21080(b)(3); 15269(a)\]
Emergency Project \[Section 21080(b)(4); 15269(b)\]
Statutory Exemptions. State codenumber:

Common SenseExemption (Thisproject doesnotfallwithin anexempt class, butitcanbeseenwithcertainty thatthereis nopossibility thattheactivity may haveasignificant effectontheenvironment (14CCR15601\[b\]\[3\]).

Categorical Exemption. State typeandsection number: Sec. 15301(b)Existing Facilities, & Sec. 15303(d) New Construction orConversion ofSmallStructures
Basedonanexamination ofthisproposal andsupporting information, thefollowing statements aretrueandexceptions donotapply:

Ifthisproject fallswithinanexempt class3, 4, 5, 6, or11, itdoesnotimpactanenvironmental resource ofhazardous orcritical concernwhere designated, preciselymapped, andofficially adopted pursuanttolaw.

Therewillnotbeasignificant cumulative effectbythisprojectandsuccessive projectsofthesametypeinthesameplace,overtime.

Thereisnotareasonable possibility thattheprojectwillhaveasignificant effectontheenvironment duetounusual circumstances.

Thisprojectdoesnotdamage ascenicresource withinanofficiallydesignated statescenichighway.

Thisprojectisnotlocatedonasiteincluded onanylistcompiled pursuant toGovt. Code § 56962.5 (“Cortese List”) Thisprojectdoesnotcauseasubstantial adverse changeinthesignificance ofahistoricalresource.

Reasons whyproject isexempt:Class1exemptions include minor alteration ofexisting public facilitiesand equipment.

Class3exemptions include theconstruction ofnewsmall facilities orstructures, andinstallation ofnewequipment. The project willresultinnegligible ornoexpansion ofuse, andalimited amount ofnewequipment andstructures willbe constructed. Theproject hasbeenreviewed forsensitive resources andwillnothave asignificant effect onbiological or cultural resources suchasthreatened orendangered speciesor theirhabitats, sensitive vegetation communities, tribal lands, ortribal cultural resources. Theproject hasnopotential tohaveasignificant effect ontheenvironment.

LeadAgency Contact Person:Amber Kelley Telephone:530.225.4046 IfFiledbyApplicant:

1.Attach certified document ofexemption finding.

2.Hasa
Signature:__________________________ AmberKelley Date:_________________________ March7,2022 Title: Environmental Compliance Manager
Signed byLeadAgencyDate received forfiling atOPR:______________ Signed byApplicant
Packet Pg. 319 Attachment: Previous Staff Report 8-2-22 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) BIDTABULATION FOR:

CLEAR CREEK WASTEWATER TREATMENT PLANT PYROLYSIS PROJECT PHASE 1 BidSchedule No.: 5293
ENGINEER'SESTSnL Group, Inc. CalElectro, Inc.
7/19/2022UNITUNITUNIT

ITEMDESCRIPTIONUNITQTYPRICE TOTALPRICE TOTALPRICE TOTAL 1LS1$ WaterPollutionControl 4,000.00$ 4,000.00$ 18,250.00$ 18,250.00$ 1,500.00$ 1,500.00 2LS1$ TrenchSheeting & Shoring 7,000.00$ 7,000.00$ 6,000.00$ 6,000.00$ 4,000.00$ 4,000.00 Modifications toExistingDewatering
3LS1$ Building 545,000.00$ 545,000.00$ 673,000.00$ 673,000.00$ 80,000.00$ 80,000.00 4LS1$ BiodryerandPyrolysisFacility 2,139,000.00$2,139,000.00$ 2,650,000.00$ 2,650,000.00$ 3,080,000.00$ 3,080,000.00 5LS1$ SiteElectricalandElectricalBuilding 1,199,000.00$1,199,000.00$ 580,000.00$ 580,000.00$ 1,300,000.00$ 1,300,000.00 TOTAL - CONTRACT ITEMS$ 3,894,000.00$ 3,927,250.00$ 4,465,500.00 Cushman Contracting Corp. Stewart Engineering, Inc. GSEConstruction Company

UNITUNITUNIT

ITEMDESCRIPTIONUNITQTYPRICE TOTALPRICE TOTALPRICE TOTAL 1LS1$ WaterPollutionControl 15,000.00$ 15,000.00$ 93,500.00$ 93,500.00$ 4,900.00$ 4,900.00 2LS1$ TrenchSheeting & Shoring 2,000.00$ 2,000.00$ 5,800.00$ 5,800.00$ 100.00$ 100.00 Modifications toExistingDewatering
3LS1$ Building 290,000.00$ 290,000.00$ 270,000.00$ 270,000.00$ 400,000.00$ 400,000.00 4LS1$ BiodryerandPyrolysisFacility 3,250,000.00$3,250,000.00$ 3,417,500.00$ 3,417,500.00$ 4,290,000.00$ 4,290,000.00 5LS1$ SiteElectricalandElectricalBuilding 1,300,000.00$1,300,000.00$ 1,262,200.00$ 1,262,200.00$ 550,000.00$ 550,000.00 TOTAL - CONTRACT ITEMS$ 4,857,000.00$ 5,049,000.00$ 5,245,000.00 TNTIndustrial Contractors,Inc.RTAConstruction, Inc. Bayview Engineering & Const.

UNITUNITUNIT

ITEMDESCRIPTIONUNITQTYPRICE TOTALPRICE TOTALPRICE TOTAL 1LS1$ WaterPollutionControl 39,632.00$ 39,632.00$ 20,000.00$ 20,000.00$ 56,186.03$ 56,186.03 2LS1$ TrenchSheeting & Shoring 19,482.00$ 19,482.00$ 3,000.00$ 3,000.00$ 98,391.83$ 98,391.83 Modifications toExistingDewatering
3LS1$ Building 116,712.00$ 116,712.00$ 275,000.00$ 275,000.00$ 415,374.75$ 415,374.75 4LS1$ BiodryerandPyrolysisFacility 3,630,503.00$3,630,503.00$ 2,780,000.00$ 2,780,000.00$ 4,094,834.28$ 4,094,834.28 5LS1$ SiteElectricalandElectricalBuilding 1,525,507.00$1,525,507.00$ 2,400,000.00$ 2,400,000.00$ 1,744,509.74$ 1,744,509.74 TOTAL - CONTRACT ITEMS$ 5,331,836.00$ 5,478,000.00$ 6,409,296.63 Packet Pg. 320 Attachment: Previous Staff Report 8-2-22 (4.11(g)--Approve Increase to Project Budget for CCWW

CITYOFREDDING

REPORTTOTHECITYCOUNCIL
MEETING DATE: October 6, 2020 FROM: ChuckAukland, Public ITEM NO. 4.11(h) Works Director
APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(h)--Authorize aPilotScaleProject forBiosolids Pyrolysis Process.

Recommendation
Authorize stafftosolicit engineering services todesign andconstruct asmall-scale pyrolysis system toprocess municipal wastewater biosolids (biosolids) attheClear Creek Wastewater Treatment Plant.

Fiscal Impact
TheCityCouncil (Council) approved Biosolids Master Planpreliminarily estimates asmall-scale pyrolysis project willcost approximately $6,100,000. Moving forward withthedesign phase is estimated at $610,000. Sufficient funding isavailable inthecurrent FiscalYear2020-21 Wastewater Utility budget.

Alternatives Action
TheCouncil maydecline toapprove thisproject andprovide alternate direction tostaff. Staff would pursue other alternatives tomanaging biosolids disposal attheStillwater andClear Creek Wastewater Treatment Plants. Thismaypresent regulatory, technical andfinancial impacts to theWastewater Utility.

Background/ Analysis
Staffisproposing toengage aconsultant toassist withplanning anddesign ofasmall-scale pyrolysis unittobetter prepare theCityofRedding ( City) tocomply withenvironmental regulations andprovide along-termsustainable solution tothedisposal ofbiosolids from both wastewater treatment plants. Thehandling anddisposal ofbiosolids ishighly regulated, with continuously evolving environmental legislation intheStateofCalifornia. TheCityofRedding City) currently disposes ofthismaterial atthelocal landfills.

Packet Pg. 321 Attachment: Previous Staff Report 8-2-22 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) R-- 2
California Senate Bill (SB) 1383codified California'scommitments toreduce greenhouse gas emissions andairpollution statewide. Itidentified methane emissions fromlandfills asonearea hestatewide 75
percent recycling goalby2020, established inCalifornia Assembly Bill (AB) 341, and strengthen theimplementation ofmandatory commercial organics recycling established inAB 1826. AsAB341 settheroadmap tofindbeneficial uses fororganics anddivert them from landfills, AB1594specifically phases out thecredit allowed from biosolids being utilized as forlandfills andclassifies allgreenwaste asregular disposal. What thismeans is landfills arebeing forced todivert organic waste, including biosolids, whereas landfill disposal ofbiosolids willnotbeaviableoption inthefuture.

More recently, theStateWater Resources Control Board (SWRCB) issued anorderrequiring all Publicly Owned Treatment Works (POTWs) tosample andreportresults forPer- and Polyfluoroalkyl Substances (PFAS). PFASareagroup ofman-made chemicals thathavebeenin usesince the1940sandarefound inawiderange ofconsumer products used daily suchas cookware, pizza boxes andstainrepellants. These chemicals arecommonly conveyed viathe wastewater tothePOTW passing through theplanttreatment processes andremaining inthe biosolids astheyarenotremoved from theeffluent waste stream. TheWastewater Utilitywill beginsampling forPFASatitswastewater treatment plants shortly andwillknowifPFASare present byearlynextyear.

OnAugust 18, 2020, theCouncil accepted theaforementioned 2020Biosolids Master Planasa general planning document tobeused bytheWastewater Utility. Several biosolid disposal alternatives wereevaluated utilizing many technical, financial andregulatory criteria. The recommended alternative wasimplementation ofnewtechnology utilizing process known as pyrolysis.

Pyrolysis istheprocess ofburning without aflame; utilizing heatproduced tothermally remove volatile organics, leaving behind asequestered carbon solidthatisheldinapermanent statethat ystable and
beneficial soilamendment thatreturns thecarbon tothesoil, therefore virtually eliminating the releasing ofcarbon intheformofmethane totheatmosphere. Other usesfortheresidual biochar include areplacement forcarbon black inmanufacturing andasactivated carbon forfiltration.

Thepotential benefits ofpyrolysis include thefollowing:

1. Areduction ofbiosolids involume andweight byupto90percent, could beachieved, thussubstantially reducing storage andhauling costs.

2. Ahighpercentage ofthecarbon content ofthematerial processed isretained inpyrolysis biochar, resulting inlessoverall carbon dioxide emissions (i.e. sequestration).

3. Biochar hasthepotential tobeusedasasoilamendment orreplacement forcarbon black inanindustrial manufacturing process.

4. Since pyrolysis does notfullycombust thematerial being processed, compliance withair quality requirements forthesystem exhaust ismorereadily achievable andpermitting willbeless complex.

5. Pyrolysis ofbiosolids results inthedestruction ofPFAS, which areanemerging concerning contaminant that couldaffect landapplication ofbiosolids inthefuture.

Packet Pg. 322 Attachment: Previous Staff Report 8-2-22 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) R-- 3

6. Pyrolysis islargely unaffected bythenitrogen content ofthebiosolids being processed, which makes thistechnology particularly attractive when taking intoconsideration the acceptance offoodwaste.

7. Pyrolysis canbeaself-sustained process thatgenerates enough energy suchthat electricity ornatural gasarenotusedonce stable operation isachieved, oncethe pyrolysis process operating temperature isreached (using syngas generated fromthe biosolids toburn).

TheBiosolids Master Plan recommended thattheCityconsider implementing asmallscale pyrolysis system atClear CreekWastewater Treatment Plant (CCWTP) inordertogain operating experience to prove thetechnology priortoconstructing afullscale facility. Asof today, pyrolysis isanemerging technology andselection ofthisalternative mayresult inthe needtosolesource orpreselect anequipment provider withatrackrecord ofproven municipal installations, given there areveryfewintheUnited States. Operation ofasmallscale facility could beanimportant stepinmeeting regulatory goalsandestablishing apermanent solution for thedisposal ofbiosolids.

Staffwillcontinue toinvestigate alternative disposal methods including trucking toregional facilities, composting, andlandapplication toensure flexibility indecision making andultimate investment ofresources.

Council Priority/ CityManager Goals
st Government ofthe21Century
Attachments
Biosolids MPStaffReport - Aug18, 2020 4.11.e (available online) Packet Pg. 323 Attachment: Previous Staff Report 8-2-22 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) GI " Y F

CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: July 18, 2023 FROM: Chuck Aukland, Public ITEM NO. 4. 11( c) Works Director
APPROVED BY***
n ..._
s. N,.
ukl n l, H' ciblic Wc aks L' reGt ' 7'3/ 2423 ry ip} in, Ci ana 7/7( 2423 [email protected]. ca.us btippin@cityofredding. org
SUBJECT: 4. 11( c)-- Authorize Purchase of Biosolids Biodryers for the Clear Creek Wastewater Treatment Plant
Recommendation
Authorize and approve the following:
1) Purchase of three Bioforcetech Biodryers and associated equipment for biosolids processing at the Clear Creek Wastewater Treatment Plant ( CCWWTP) in the amount of$ 2, 599, 460;
2) Authorize an additional $ 200, 000 for taxes and fees associated with the purchase; and 3) Find the project categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Sections 15301 - Existing Facilities, and 15303 - New Construction ar Conversion of Small Structures.

Fiscal Impact
The guote for this purchase is $ 2, 599, 460, not including associated taxes, duties, and fees.

Funding for the purchase is budgeted and available in the Wastewater Utility Capital Budget.

Alternatzves Action
The City Council ( Council) may choose not to approve this purchase and provide alternate direction to staff. By doing so, the City will not have the capacity to process all biosolids through the pyrolysis system and would be in jeopardy of not meeting the regulatory deadline for organics diversion goals for the State of California by January l, 2025.

Background/ Analysis
On December 15, 2020, the City of Redding ( City) awarded Request for Proposal ( RFP) Bid Schedule No. 5179 to Waterworks Engineers to provide engineering services to design a wastewater biosolids pyrolysis system for the CCWWTP.

On August 17, 2021, the City awarded RFP Bid Schedule No. 5211 to Bioforcetech Corporation to supply Biosolids Drying and Pyrolysis equipment for the Clear Creek Wastewater Treatment Plan ( CCWWTP) as part of Phase I( Pilot Project).

Packet Pg. 324 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) Report to Redding City Council July 12, 2023
Re: 4.11( c)-- Authorize Purchase ofBiosolids Biodryers for the Clear Creek Wastewater Treatment Plant Page 2
On August 2, 2022, the City awarded Bid Schedule No. 5293 to SNL Group to construct the CCWWTP Pyrolysis Project Phase 1, which is currently under construction. This project consists o the installation of one pyrolysis reactor and three biodryers to process biosolids from the CCWWTP. The capacity of this project is not sufficient to handle al1 biosolids produced at the CCWWTP.

The subject purchase will allow for the completion of the second of the four phases required to fully complete this project. This second phase wi11 add three additional biodryers and double the drying capacity, therefore, allowing all of the current biosolids production from CCWWTP to be processed through the pyrolysis reactor. Additional expansion to this project Phases 3 & 4) is planned in upcoming budget cycles to provide additional capacity for the Stillwater Wastewater Treatment Plant and a11ow for continuous operations when facing system downtime.

Lead time for delivery of the requested equipment is 12- 14 months from approved submittals.

Staff is requesting to purchase and order this equipment to receive and install it prior to January l, 2025, in order to meet the regulatory deadline for organics diversion goals for the State of California. The biodryers will be installed with the current construction contract Bid Schedule No. 5293 under a contract change order.

Environmental Review
Staff has determined that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, per Sections 15301 - Existing Facilities, and 15303 - New Construction or Conversion of Small Structures. Class 1 exemptions include the operation, repair, maintenance, or minor alteration of existing facilities, structures, or equipment involving negligible or no expansion of use. Class 3 exemptions consist of construction and location of new small facilities and equipment, or conversion of existing structures. The City will add new equipment to the existing Pyrolysis system and the project will result in negligible expansion of use. The project area has been reviewed for sensitive resources and wi11 not have an effect on biological or cultural resources such as threatened or endangered species or their habitats, sensitive vegetation communities, tribal lands, or tribal cultural resources. The project has no potential to have a significant effect on the environment.

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

Attachments
Location Map
Bioforcetech Corp. Equipment Quote
Notice of Exemption
Previous Staff Report 12/ 15/ 20
Previous Staff Report 8/ 17/ 2021
Previous Staff Report 8/ 2/ 2022
Packet Pg. 325 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1)

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LOCATION MAP
Packet Pg. 326 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"
Bioforcetech Biosolids Management Upgrade
Code: BFT Q- 23- 881
C at: C76/ T 5/: C 23
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t Biosolids BioDrying Facility
In ut up to 3, 000 wet tons/ year of biosolids, at 22°io solids content C tp t 825 dryer tons/ year of biosolids, at 80°io solids content Client info:
lar Joshua Vandiver
t or p rsy City of Redding
Ern l jvandiver@cityofredding. org
f ha e 530) 224-6069
Cli nt/ F' r aj t City of Redding, Clear Creek WWTP
Bioforcetech contacts:
4 rr Valentino Villa, C00
c rnpar yc dr s 938 Linden Ave
South San Francisco, CA 94080
6' hcas e 1 ( 650) 906- 0193
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Local Representative Contacts:
1arr Mark Humberstone
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MISCOwater
Err ail mhumberstone@miscowater. com
har 925) 7851602
Packet Pg. 327 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"
Document index:

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COVER LETTER
Dear Josh,
Bioforcetech Corporation would like to thank you for the opportunity to serve as your biosolids solution and
service provider.

Bioforcetech is in the business of providing biosolids
solutions using two efficient and high value processes, the BioDryer and the BFT Pyrolysis Unit. While the
equipment can be used independently, the BioDryer and
Pyrolysis units are most effective when configured
together as an integrated system.

BFT BioDryer
The Bioforcetech BioDryer is a unique technology that is designed to dry biosolids in order to produce a nutrient rich Class A organic material. The resulting product can be recycled and applied as a fertilizer or soil amendment.

The BFT- BioDryer can save up to 70°io in energy costs compared to a conventional belt or paddle dryer since it uses the metabolic energy of bacteria that naturally occur in biosolids, instead of costly fossil fuels. Each BFT-BioDryer unit is able to dry 8 wet tons of biosolids at 20°io TS in as quick as 60 hours.

The result is Class A biosolids at 75- 90°io TS. The BFT-Biodryer is a modular configuration allowing units to be added to increase capacity and production of rich organic material.

Packet Pg. 328 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"
BFT Pyrolysis Units
Pyrolysis" is the thermochemical decomposition of organic material through the application of heat without the addition of extra oxygen. Through pyrolysis Bioforectech is able to recuperate value from biosolids, transforming it into renewable energy and OurCarbon0 biochar. Biochar is a carbon based product that is no longer considered a biosolid. Biochar produced from the BFT- Pyrolysis has economic value and can be sold as a fertilizer or as a material that can be used to make sustainable products htt s: wvvvv. r d vvithcat rc rbc r. e r).

BFT' s pyrolysis systems are self- sustained pyrolysis systems that generate enough energy to maintain the process, and additional thermal energy that can be recirculated back to the BioDryer for additional biosolids drying.

A complete Bioforcetech system helps municipal wastewater treatment facilities to meet their sustainability goals by" producing" a valuable product, rather than costly waste.

The Bioforcetech systems are compact, modular, and self-contained for easy installation and maintenance, as well as fully automated for 24/ 7 operation with little to no operator interaction.

We look forward to working with you and your Team on this and future projects. Feel free to contact me or our local representative for any questions.

Best regards,
Valentino Villa
Chief Operating Off cer
P: 650- 906- 0193
E: v.villa@bioforcetech. com
Packet Pg. 329 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"

ABOUT BIOFORCETECH
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Bioforcetech is committed to protecting nature and human health by providing technologies that deliver a zero waste future, transforming organic waste into sustainable products. Due to the traditional ( and not cost- effective) methods for the treatment of these materials, BFT has created a new generation of machinery able to use up to 90°io less energy. The BFT machinery has a limited environmental impact and is able to obtain by- products with economic and commercial value. BFT has developed the BioDryer and the pyrolysis reactor.
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BFT is a partner of the Presezzi Extrusion Group( www.presezziextrusiongroup. com). The Group is based in Europe, and operates in various fields such as mechanical and renewable energy. Currently the PE group is a leader in the construction of aluminum extrusion presses, aggregate handling, industrial pyrolysis and industrial automation. In its decades of operations, the PE Group has developed a wide network of top brand partners in order to assure the highest quality in every product.

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Founded in 2012, after years of research and pilot testing, our team has developed and deployed the first energy positive system that UpCycles biosolids into energy and biochar.

All this was possible due to our team of talented individuals who possess tremendous skills, which range from biotech, engineering and mechanical energy, industrial automation, financial management and business administration. With more than 10 full- scale installations worldwide, and the first and only full- scale biosolids to energy system in North America, Bioforcetech assures that its team possesses the highest expertise and competence.
www. presezziexteusiongzoup. com
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Packet Pg. 330 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"

TECHNOLOGY OVERVIEW
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The BioForceTech ( BFT) plant was designed and built to combine a low energy consumption drying process( mediated by bacterial activity), with a system to add value to biosolids ( through a pyrolysis process), in order to obtain a plant having a positive energy balance.

BFT' s ultimate objective was to build a high efficiency plant with low capital cost and limited external fossil fuel requirements.

Special features were implemented in the design to keep energy waste to a minimum. These include aeration, waste heat recovery, efficient reactor shape, and insulation methods.

Unlike most biosolids drying systems, which use high energy consumption to achieve high drying levels, the BFT drying system guarantees a high degree of drying ( from 20°io of dry matter to 90°io of dry matter). This is accomplished by recycling the metabolic waste energy, generated by bacteria already present in biosolids, as heat.

An energy recovery system ( pyrolysis reactor) makes the process sustainable and efficient. Installed downstream of the dryer, this system minimizes the use of outside energy for the complete treatment of biosolids from the wastewater treatment plant.
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Packet Pg. 331 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"
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Upcycling, also known as creative reuse, is the process of transforming by-products, waste materials, useless, or unwanted products into new materials or products of better quality or for better environmental value."
At Bioforcetech we embrace this concept and realize it with our sustainable system, converting organic waste into renewable energy and biochar.

Biochar is charcoal used as a soil amendment. Biochar is a stable solid- rich in carbon, and can endure in soil for thousands of years. Biochar thus has the potential to help mitigate climate change via carbon sequestration.
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UP TO 90% VOLUME REDUCTION
90% LESS TRUCKS
UP TO 100% LESS ENERGY CONSUMPTION

FULLY AUTOMATED SYSTEM

IMPROVED ENVIRONMENTAL AND SOCIAL IMPACT
LOW 0& M
Packet Pg. 332 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"

BIODRYER
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The BFT innovative process is able to dry( i. e., remove the water from) various types of biomass without the use of additives, such as fossil fuel energy, chemicals, etc. In a little over 60 hours, the BFT BioDryer dries organic materials from 20°io solid content to 80°io solid content and above.

Use of the naturally-occurring microbial populations is the essence of our exclusive technology. By taking advantage of the microbial populations that proliferate inside high- concentration organic materials, our team has designed an extremely fast bioreactor that promotes life inside the biomass.

As the bacteria grow, they emit heat that BFT uses to remove the water and tap the stored energy.

The bacteria use carbon compounds found in the biosolids to grow and reproduce. The microorganisms also need oxygen present in the air to complete these reactions. Waste heat is released during the reactions.

These metabolic reactions alone can significantly increase the temperature inside the reactor in a few hours. In a system optimized for this purpose such as the BFT BioDryer, this temperature, together with a correct air flow, are used as the means to carry and evaporate the water held by the material, thus leading to a high dry solids concentration.

Packet Pg. 333 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"
Equipment:

The BioDryer is composed of an external structure that is made with painted steel to prevent rust corrosion and strength loss, and internal parts that are made of AISI 304L and AISI 304 stainless steel.

The AISI 304L is used when a welding process is needed. The stainless steel prevents fast deterioration. The reactor looks like an octagonal rotating drum and is moved by a motor reducer and linked to an aeration system. Loading and unloading gates are present on one side of the octagon.

The air system is composed of two blowers, polypropylene ( PPH) pipes, and one heat exchanger. The first centrifugal fan blows the air inside the reactor and provides oxygen for the process. The second blower sucks the exhaust air and the steam formed during the process.

The PPH guarantees resistance to aggressive chemical agents and also has a good resistance to high temperatures, up to 230° F.

Batch capacity up to 16, 000 Ibs, depending on % solids input
Batch duration 52 to 72 hours, depending on % solids input Operating Temperature up to 160° F
Empty weight 28, 000 Ibs
Rotating motor up to 18 kW
Blower power up to 7. 5 kW
Packet Pg. 334 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"

BFT BIODRYER TECHNICAL SPECS - GENERIC
Volume c pacity 26 m3
812ft3)
Max mat rial treatment capacity per batch 7,250 kg
16, 000 Ibs/ 8 ton)
Max weight( m',achine+ materi l) ' 23, 000 kg
50, 7001bs/ 25. 3 ton)
Material accepted Biosolids - Manure - Organic Waste
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Operating condition outdoor 10 to 55 ° C
15 to 130 ° F)
Electrical compli nce CE- NEC

BFT BIODRYER SITE REQUIREMENTS - GENERIC
Surface preparati n r quirements Flat Concrete Pad
Electrical cc nnection Max load 88 Amps, main switch 125 Amps, 3 phase, 400- 480V, 50- 60Hz
Gompre sed air 8 bar ( 115 PSI)
Sewage cc nnectic n Required
Packet Pg. 335 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"

BFT BIODRYER TECHNICAL PERFORMANCE- GENERIC, NON PROJECT SPECIFIC Type c f pr cess Batch
Batch duration 52 to 72h
t7pera# ing tempera# ure Up to 70 °C ( 160 ° F)
Ye rly aperating time Up to 8, 500 Hours
Max yearly material inle# per machine Up to 1, 180 metric ton/ y ( 1, 300 ton/ y) Max yearly rnateria) outlet per machine 296 metric ton/ y( 326 ton/ y) Min material s lid content inlet 17°io SC
Material salid content outle# From 70 to 90°io SC
Material' t utput category( biosolid) Class A/ Exceptional Quality Ernission Compliance with California Limits
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ifespan Up to 20 years
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Packet Pg. 336 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"
P ANT DATA- BioDryers
Plant requirements:

Input material: biosolids at 22°io solids content
Additional feedstock: no additional feedstock is required Utilities required ( preliminary):

Electricity( max load 88 amps, main switch 125 amps breaker, each BioDryer) Process water: 1- 1. 5" pipe; 45 gpm flow rate; 70 psi pressure; 205° F temperature, each BioDryer
Potable/ Recycling Water( 2 inch pipe)
Water Discharge( 2 inch connection PP pipe)
Internet( 1 Mb/ s)
Site: The only site requirements are a flat cement pad and a carport cover or similar for UV and weather protection. If temperatures are lower than 15° F(- 10° C), a heated building might be required to ensure proper operations.

Input: up to 3, 000 wet tons/ year of biosolids, at 22°io solids content Output: 825 dryer tons/ year of biosolids, at 80°io solids content Lifespan: up to 20 years
Up Running time: up to 8, 500 hours/ year
Estimated energy consumption:

Electricity: 20- 40 kWh/ wet ton ( 105, 000 kWh/ year)
Heat( natural gas): 0. 9- 1. 4 MMBTU/ wet ton
Number of BioDrvers: 3
Pollution control: present at the client' s site
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Packet Pg. 337 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"
BUDGETARY QUOTE: BioDryers
BioDryers and Ancillary Equipment
Three( 3) BFT BioDryers
Three( 3) BioDryer feeding shaftless screw conveyors
One( 1) BioDryer distribution feeding screw conveyor, 60 ft ( 18m), with two knife gates, supports by others
BioDryer catwalks for maintenance access
BioDryers foul air piping ( polypropylene) to connect with existing BioDryers, 60 ft( 18m), supports by others
Three( 3) BioDryer standard electrical and control panels ( non- classified environment, NEMA12, painted steel)
Engineering Services
Support to consulting engineering firm: 0 to 100°io design Submittals
Permitting support to consulting engineering firm
Other Services
Shipping of All Equipment to Client' s site
Installation inspection, start- up, commissioning and training ( includes travel, lodging and travel expenses.)
Total cost for all the above: $ 2, 599, 460
All prices are in 2023 US$ and subject to changes based on market conditions. This proposal is based on BFT' s standard equipment and specifications. Any deviation from BFT standards may result in price and time adjustments.

Standard BFT terms for equipment procurement:
20°io upon PO
30° io upon approved drawings/ submittals
20°io upon shipping
20°io upon delivery
10°io upon completion but no longer than 90 days after delivery Estimated Milestone Completion:

Submittals: 10- 12 weeks after receipt of PO
Equipment delivery: 12- 14 months after approval of shop drawings/ submittals Warranty Statement: standard BFT warranty is 12 months after installation and equipment acceptance.

Packet Pg. 338 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"
Not Included in the proposal:

Engineering support or site visit unless stated otherwise Conveying system from dewatering building to the BFT plant Light building for weather protection
Project management and permitting support unless stated otherwise Construction and site preparation
Emission stack( s)
Air emission testing/ stack testing/ performance verification testing All utilities that are required for operation
Unloading, uncrating, installation and installation supervision Readiness of the equipment before requesting start- up service. Non- readiness may incur additional charges
Compatibility of equipment materials of construction with process environment Piping, connections, ductwork, platforms, conveyance structures& supports, gratings and railings unless stated otherwise
Bonding for the equipment
Any other auxiliary equipment or service not detailed above Taxes, duties and fees for containers held at the designated port in excess of the last free day Sales taxes, use tax and similar taxes
Everything not included in the list above
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0& M cost breakdown:
o Utilities: $ 48, 000
electricity @ $ 0. 1/ kWh): $ 10, 500
natural gas @$ 1/ therm): $ 37, 500
o Spare parts and components replacement: $ 25, 000
o Maintenance: 150 hours/ year
o Operation ( 24/ 7- fully automated)
Packet Pg. 339 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"
REFERENCE LIST - More available upon request
United States
1) Silicon Valley Clean Water; Redwood City CA
Project phase: operational
Full Scale: 3 BioDryers and1 Pyrolysis
Feedstock: anaerobically digested biosolids
2) Yakama Legends Casino, WA
Project phase: operational 1 BioDryer
Feedstock: undigested dewatered sludge( WAS only)
3) Ephrata Borough Authority, PA 4 BioDryers and 1 Pyrolysis Project phase: manufacturing
ETA for commissioning: Q1 2024
Feedstock: undigested dewatered sludge
4) City of Redding- Clear Creek WWTP, CA 3 BioDryers and 1 Pyrolysis Project phase: manufacturing
ETA for commissioning: Q1 2024
Feedstock: anaerobically digested biosolids
5) City of Brentwood, CA 8 BioDryers and 2 Pyrolysis
Project phase: submittals
ETA for commissioning: 2025
Feedstock: undigested dewatered sludge( WAS only)
Italy
1) Brianzacque SpA 4 BioDryers
Project phase: operational
Feedstock: undigested dewatered sludge
2) Gruppo CAP 7 BioDryers
Project phase: operational
Feedstock: anaerobically digested biosolids
3) Acegas 2 BioDryers
Project phase: operational
Feedstock: anaerobically digested biosolids
Packet Pg. 340 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) i`.`?,= J"<. i f tC" i"

DISCLAIMER
Nothing in this document and in any of its attachments and/ or relating documents can be considered as a guaranteed quote, an offer of performance or scope of work--rather it is a provisional estimate based on thebest information available.

Moreover, nothing in this document and in any of its attachments and/ or relating documents can be considered as binding or in any form or way as a commitment of the company or any of its legal representatives or employees, or a guarantee by Bioforcetech or any of its commercial partners, and in no way it can be relied upon, quoted, or be the base, not even partially, for any kind of expectations, be them commercial, legal or of any other kind.

A proper, more accurate although approximate, quote may be provided at Bioforcetech' s discretion only upon receipt of more precise information and documentation. Any warranties and/ or guarantees ( if any and appropriate) and/ or commitments can be provided only though the signature and execution of a fully- fledged and binding agreement for the supply of Bioforcetech' s products and services.

The contents of this document and any attachments are Bioforcetech' s proprietary materials, protected worldwide by copyright and other intellectual property rights, including but not limited to trademarks, and are intended solely for the addressee( s) and contain confidential and privileged information, which may be legally protected from disclosure and whose disclosure is hereby forbidden.

If you are not the intended recipient of this document or their agent, or if this document has been addressed to you in error, please immediately alert the sender and then delete this document and any attachments. If you are not the intended recipient, you are hereby notified that any use, dissemination, copying, or storage of this message or its attachments is strictly prohibited.

Packet Pg. 341 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1)

NOTICE QF XEMPTION
Ta: Office ofPlanning and Research FROM; iiy of F edding 1400 Tenth treet, Room 121 Fublic Works Department
Sacramenta, CA 95814 777 Cypress Avenue
Redding; CA 9 0(?1
Shasta County Clerk
Courlty of Shasta
P.O: Bt x 990880, 1643 Marke- Street
Redding, GA 96099-0880
Project Tit[e. Clear Creek VVastewater Treatment Plant Biosolids P ysis Pliase 2 Proj_ect J# 2&37- 10 Project Locatian— Specific: 2220 Metz Road
Project Locatian— City; Reddin Project Locatian— County: Shasta Descr ptian af Praaect: T11e City of Reddin wiil install three additic,nal Biodryers ta the Biosolids P rolysis facility at the Clear Creek Wastewatet- Treatment Plant. Installation of the three Biodrvers will altow t11e City to process a11 biosolids throu ll the P rolvsis svstam and to meet the State af California' s re ulatorv deadline and g aals for or anics diversion bv Januarv 1 2025. Work will inelude installin tlle Biodryers on an existin concrete pad at the Pvrolysis facility. All work will occur witllin the Citv facilitv.

Name of Publi c Agency Approving Project: City of Reddin lYame ofPerson orAgency Carrying Qut Project: Josh Vandiver, Wastewater Utili Mana er Exempt Status: ( check one)
Ministerial [ Section 210$ Q( b}( 1); 15268]
Declared Emergency[ Section 21 Q80( b)( 3), 15z69( a)]
Emergency Project [ Section 2I080( b)( 4); 15269( b)]
Statutory Exemptions. State code number:

Common Sense Exemption( This project does not fall within an exempt class, but it can be seen with certainty that there is no possibility that the activity may haue a significant effect on the environment( 14 CCR 150b 1[ b][ 3]):

Categorical Exemption. State type and section number: Sectian 15301. Existing Facilities and Sectron 15303 New Construction or Conversion of Small Structures
No exceptions applytl at would bar t11e use of a categorical exemption( PRI> 21 Q84 and 14 CCR 153d0. 2).

Reasons why project is exempt: Class 1 exemptions include the operation; re air maintenance or minor alteration of existin facilities; structures, or equipment irivalvin ne li ible or no expansion of use Class 3 exemptions eonsist of construction and location of new sinall facilities and equip nent or conversion of existin structures The Citv will add new eauipment to the existin F r olysis systern and the praiect will result an ne li ible expansion of use The pro' ec t area has been reviewed for sensitive resources and wi11 not have an effect on biolo ical or cultural resources such as tl7reatened or endan ered species or their habitats sensitive ve etation communities tribal lands oy tribal cultural resources. The proiect has no potential to have a si nifcant effect on tlie environment.

Lead Agency C ntact Persan: Amber Kelley Telephone: 530. 225: 404 If Filed 6y Applicant:
l. Attach certified docurnent of exemption finding.

2. Has a notice of exemption been filed by tlie public agency approving tlle project? Yes No r" , f
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Title: Environmental Com Iiance ana er
0 Signed by Lead Agency Date received far filing at OPR:

Signed by Applicant
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Packet Pg. 342 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) y

CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: December 15, 2020 FROM: Chuck Aukland, Public ITEM NO. 4. 11( d} Works Director
APPROVED BY***
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caulzland@ci. redding. ca.us btippin@cityofredding. org SUBJECT: 4. 11( d)-- Award Request for Proposals No. 5179 and Authorize Execution of Consulting and Professional Services Contract for the Clear Creek Wastewater Treatment Plant Biosolids Pyrolysis Project
Recommendation
Authorize the following actions relative to Request for Proposals, Bid Schedule No. 5179, to provide engineering services for the Clear Creek Wastewater Treatment Plant Biosolids Pyrolysis Project:
1) Award to Water Works Engineers;
2) Authorize staff to negotiate and the Mayor to execute a consultant services agreement Agreement) for project management, environmental permitting and compliance, geotechnical engineering, surveying, final design and contract documents, and technical assistance during bidding for the Clear Creek Wastewater Treatment Plant Biosolids Pyrolysis Project, for a not- to- exceed fee of$ 749, 985; and 3) Authorize the City Manager to approve contract amendments not to exceed$ 35, 000.

Fiscal Impact
Funding for this project will come from the Wastewater Utility Fund. The City Council Council) approved Biosolids Master Plan preliminarily estimates the total small- scale pilot project cost to be approximately $ 6. 1 million. Sufficient funding for the proposed Water Works Agreement is included in the 2020- 21 Wastewater Utility budget.

Alternative Action
The City Council ( Council) may choose not to award the Request for Proposals No. 5179 at this time and direct staff not to pursue this project. This alternative wi11 delay or eliminate the construction of the project. Staff would pursue other alternatives to managing biosolids disposal at the Stillwater and Clear Creek Wastewater Treatment Plants. This may present regulatory, technical and financial impacts to the Wastewater Utility.

Packet Pg. 343 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) Report to Redding City Council December 10, 2020
Re: 4.11( d)-- Award RFP No. 5279 Consulting Contract Page 2 Background/ Analysis
The City of Redding ( City) owns and operates two municipal wastewater treatment plants WWTPs). The C1ear Creek plant ( CCWWTP) generally serves the west side of Redding with a tributary area population of approximately 74, 000 people. The Stillwater plant ( SWWTP) generally serves the east side of Redding with a tributary area population of approximately 24,000 people. Both plants discharge directly treated water to the Sacramento River.

Prior to 2014, the City disposed of WWTP biosolids through a combination of land application at the Redding Airport and landfilling. However, the land application site is nearing its lifetime capacity to accept additional biosolids due to metals loading, and the City has now been exclusively disposing of biosolids at the West Central LandfilL This change also coincided with a transition at CCWWTP from the use of drying beds to mechanical dewatering with a centrifuge facility.

Recent State legislative changes regarding greenhouse gas emissions and the disposal of organic waste ( California Senate Bill ( SB) 1383, California Assembly Bill (AB) 1826, AB 876, AB 341, and AB 1594) may result in the landfill no longer accepting biosolids within the coming years.

SB 1383 codified California' s commitments to red uce greenhouse gas emissions and air pollution statewide. It identified methane emissions from landfills as one area to address in order to meet California' s target to reduce Greenhouse Gas ( GHG) emissions 40 percent below 1990 levels by 2030. SB 1383 enhances California' s efforts to achieve the statewide 75 percent recycling goal by 2020, established in AB 341, and strengthen the implementation of mandatory commercial organics recycling established in AB 1826. As AB 341 set the roadmap to find beneficial uses for organics and divert them from landfills, AB 1594 specifically phases the credit allowed from biosolids being utilized as " Alternative Daily Cover" and classifies all green waste as regular disposal. What this means is that landfills are being told to divert organic waste from landfills including biosolids, therefor landfill disposal of biosolids wi11 not be a viable option in the future.

In 2019, staff updated the Wastewater Biosolids Masterplan, including an alternative analysis of different technologies to effectively dispose of biosolids. Pyrolysis was selected as the preferred alternative for implementation. This process uses thermal decomposition of organic material through the application of heat without the addition of extra air or oxygen converting the organic material into two byproducts, syngas and biochar. The process is self- sustaining, as syngas is created and combusted in a flameless reactor, creating the heat source to produce even more syngas and process the organics into biochar. Biochar is the seguestered carbon portion of the organics that remains after the pyrolysis process is complete and is similar to a commercial activated carbon. Biochar has been used worldwide as a soil amendment, a replacement for carbon black in plastics manufacturing, carbon electrodes in super- capacitors for energy storage, food packaging, waste water treatment, air filtration, livestock feed supplement, for water filtration, and as a composting agent.

On October 6, 2020, the Council authorized staff to solicit engin ering services for the pyrolysis project. At the end of October 2020, staff advertised Request for Proposals No. 5179, to select an engineering firm to provide project management, design services, environmental permitting and technical services to facilitate the design and construction of a pilot scale biosolids pyrolysis system with plans for expansion to accommodate full- scale operation. The new pyrolysis process will help the wastewater utility meet future and existing regulatory requirements.

Packet Pg. 344 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) Report to Redding City Council December 10, 2020
Re: 4.11( d)-- Award RFP No. 5279 Consulting Contract Page 3 Two proposals were received on November 20, 2020, from Water Works Engineers and GHD, Consultants, both of Redding. Copies were distributed to the selection panel made up of Public Works and Treatment P1ant staff and evaluated on the following factors — understanding of the scope of work, ability to meet the proposed schedule and maintain the project budget, experience and qualifications of the proposed staff, project approach, familiarity with City projects, requirements and standards, and geographic location of the teain. Applying these criteria to the proposals, the selection panel determined that Water Works Engineers is the best candidate to provide the required services for this project.

If authorized, staff will negotiate a final cost based on the scope of required services with Water Works Engineers. The consultant fee is estimated and the agreement wi11 be for actual work performed. Due to the complex nature of the project, staff recommends the approval of an additional $ 35, 000 in contingency reserve for the contract. If this reserve needs to be utilized, a contract amendment would need to be negotiated with the consultant and executed with approval ofthe City Manager.

This project wi11 be a first-phase implementation allowing for testing of the pyrolysis technology, while allowing the City to process a significant amount of biosolids produced at the Clear Creek WWTP. Staff will gain first- hand experience of the performance and operational requirements of the pyrolysis system. Staff anticipates utilizing the pilot facility to allow for testing the processing of some biosolids produced at Stillwater WWTP, as that plant operates a completely different biosolids management process. Plans for full-scale implementation of the technology will be expected to process all biosolids produced by both facilities, ensuring that the City is achieving the required significant diversion of organic waste from landfill disposal.

Council P iority/ 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."
c: Ryan Bailey, Assistant Public Works Director
Attachments
10- 6- 20 Staff Report ( available online)
Packet Pg. 345 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) y

CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: October 6, 2020 FROM: Chuck Aukland, Public ITEM NO. 4. 11( h) Works Director
APPROVED BY***
P . .

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i kl, xi, F' ubli Waaa•ks L7ur c. ' 9123/ 2 20 r a in, C"'t i tn° c` 7iv91?t 20
caulzland@ci. redding. ca.us btippin@cityofredding. org SUBJECT: 4. 11( h)-- Authorize a Pilot Scale Project for Biosolids Pyrolysis Process.

Recommendation
Authorize staff to solicit engineering services to design and construct a small- scale pyrolysis system to process municipal wastewater biosolids ( biosolids) at the Clear Creek Wastewater Treatment Plant.

Fiscal Impact
The City Council ( Council) approved Biosolids Master Plan preliminarily estimates a small- scale pyrolysis project will cost approximately $ 6, 100, 000. Moving forward with the design phase is estimated at $ 610, 000. Sufficient funding is available in the current Fiscal Year 2020- 21 Wastewater Utility budget.

AlteNnatives Action
The Council may decline to approve this project and provide alternate direction to staff. Staff would pursue other alternatives to managing biosolids disposal at the Stillwater and Clear Creek Wastewater Treatment Plants. This may present regulatory, technical and financial impacts to the Wastewater Utility.

Background/ Analysis
Staff is proposing to engage a consultant to assist with planning and design of a small-scale pyrolysis unit to better prepare the City of Redding ( City) to comply with environmental regulations and provide a long-term sustainable solution to the disposal of biosolids from both wastewater treatment plants. The handling and disposal of biosolids is highly regulated, with eontinuously evolving environmental legislation in the State of California. The City of Redding City) currently disposes of this material at the local] andfills.

Packet Pg. 346 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) Report to Redding City Council September29, 2020
Re: 4.11( h)-- Authorize Biosolids Pyrolysis Project at CCWWTP Page 2 California Senate Bill ( SB) 1383 codified California' s commitments to reduce greenhouse gas emissions and air pollution statewide. It identified methane emissions from landfills as one area to address in order to meet California' s target to reduce Green House Gas emissions 40 percent below 1990 levels by 2030. SB 1383 enhances California' s efforts to achieve the statewide 75 percent recycling goal by 2020, established in California Assembly Bill ( AB) 341, and strengthen the implementation of mandatory commercial organics recycling established in AB 1826. As AB 341 set the roadmap to find beneficial uses for organics and divert them from landfills, AB 1594 specifically phases out the credit allowed from biosolids being utilized as Alternative Dai1y Cover" for landfills and classifies all green waste as regular disposal. What this means is landfills are being forced to divert organic waste, including biosolids, whereas landfill disposal of biosolids wi11 not be a viable option in the future.

More recently, the State Water Resources Control Board ( SWRCB) issued an order requiring all Publicly Owned Treatment Works ( POTWs) to sample and report results for Per- and Polyfluoroalkyl Substances ( PFAS). PFAS are a group of man- made chemicals that have been in use since the 1940s and are found in a wide range of consum r products used daily such as cookware, pizza boxes and stain repellants. These chemicals are commonly conveyed via the wastewater to the POTW passing through the plant tr atment proc sses and remaining in he biosolids as they are not removed from the effluent waste stream. The Wastewater Utility wi11 begin sampling for PFAS at its wastewater treatment plants shortly and will know if PFAS are present by early next year.

On August 18, 2020, the Council accepted the aforementioned 2020 Biosolids Master Plan as a general planning document to be used by the Wastewater Utility. Several biosolid disposal alternatives were eval uated utilizing many technical, financial and regulatory criteria. The recommended alternative was implementation of new technology utilizing process known as pyrolysis.

Pyrolysis is the process of burning withou a flame; utilizing heat produced to thermally remove volatils organics, leaving behind a sequestered carbon solid that is held in a permanent state that can be beneficially reused. This " biochar" locks the carbon into an extremely stable and bene cial soil amendment that returns the carbon to the soil, therefore virtually eliminating the releasing of carbon in the form of inethane to the atmosphere. Other uses for the residual biochar include a replacement for carbon black in manufacturing and as activated carbon for filtration.

The potential benefits of pyrolysis include the following:
l. A reduction of biosolids in volume and weight by up to 90 percent, could be achieved, thus substantially reducing storage and hauling costs.

2. A high percentage of the carbon content of the material processed is retained in pyrolysis biochar, resulting in less overall carbon dioxide emissions ( i.e. sequestration).

3. Biochar has the potential to be used as a soil amendment or replacement for carbon black in an industrial manufacturing process.

4. Since pyrolysis does not fully combust the material being processed, compliance with air quality requirements for the system exhaust is more readily achievable and permitting will be less complex.

5. Pyrolysis of biosolids results in the destruction of PFAS, which are an emerging coneerning contaminant that could affect land application ofbiosolids in the future.

Packet Pg. 347 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) Report to Redding City Council September29, 2020
Re: 4.11( h)-- Authorize Biosolids Pyrolysis Project at CCWWTP Page 3

6. Pyrolysis is largely unaffected by the nitrogen content of the biosolids being processed, which makes this technology particularly attractive when taking into consideration the acceptance of food waste.

7. Pyrolysis can be a self-sustained process that generates enough energy such that electricity or natural gas are not used once stable operation is achieved, once the pyrolysis process operating temperature is reached ( using syngas generated from the biosolids to burn).

The Biosolids Master Plan recommended that the City consider implementing a small- scale pyrolysis system at Clear Creek Wastewater Treatment Plant ( CCWTP) in order to gain operating experience to prove the technology prior to constructing a full-scale facility. As of today, pyrolysis is an emerging technology and selection of this alternative may result in the need to sole- source or pre- select an equipinent provider with a track record of proven municipal installations, given there are very few in the United States. Operation of a small- scale facility could be an important step in meeting regulatory goals and establishing a permanent solution for the disposal of biosolids.

Staff will continue to investigate alternative disposal methods including trucking to regional facilities, composting, and land application to ensure flexibility in decision making and ultimate investment of resources.

Council Priority/ City Manage 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
Biosolids MP Staff Report - Aug 18, 2020 4. l l. e ( available online) Packet Pg. 348 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) y

CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: August 18, 2020 FROM: Chuck Aukland, Public ITEM NO. 4. 11( e) Works Director
APPROVED BY***
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ukla»ci, ubiic Wc+-1 s I ireetc i(€/ 2() 2t) a°Y p
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T J14?,' 2() 2(l
[email protected]. ca.us btippin@cityofredding. org
SUBJECT: 4. 11( e)-- Accept the Biosolids Masterplan as Written by Waterworks Engineers Recommendation
Accept the Wastewater Treatment P1ant Biosolids Masterplan as prepared in consultation with Waterworks Engineers.

Fiscal Impact
There are no direct fiscal impacts from accepting this planning document. The consultant costs to prepare the Biosolids Master Plan totaled $ 112, 157.

Alternative Action
The City Couneil may choose not to accept the Biosolids Master Plan. Staff will continue to study and evaluate alternatives to comply with local, State, and Federal law while processing municipal biosolids.

BackgNound/ Analysis
The City of Redding ( City) owns and operates two municipal wastewater treatment plants WWTPs). The Clear Creek plant ( CCWWTP) generally serves West Redding with a tributary area population of approximately 74, 000 people. The Stillwater plant ( SWWTP) generally serves East Redding with a tributary area population of approximately 24, 000 people. Both plants discharge directly to the Sacramento River following treatment.

A byproduct of wastewater treatment is the accumulation of organic waste known as biosolids.

Prior to 2014, the City disposed of WWTP biosolids through a combination of land application at the Redding Airport and hauling to the landfill. However, the land application site is nearing its lifetime capacity to accept additional biosolids due to metals loading, and the City has now been exclusively disposing of biosolids at the West Central LandfiIl. This change also coincided with a ransition at CCWWTP from the process of using dryi.ng beds to using mechanical dewatering with a new facility.

Packet Pg. 349 Packet Pg. 303 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) Report to Redding City Council August 12, 2020
Re: 4.11( e)-- Biosolids Masterplan Page 2
Recent State of California legislative changes regarding greenhouse gas emissions and the disposal of organic waste ( California Senate Bill ( SB) 1383, California Assembly Bill ( AB) 1826, AB 876, AB 341, and AB 1594) may result in the landfill no longer accepting biosolids within the coming years. SB 1383 codified California' s commitments to reduce greenhouse gas GHG) emissions and air pollution statewide. It identified methane emissions from landfills as one area to address in order to meet California' s target to reduce GHG emissions to 40 percent below 1990 levels by 2030. SB 1383 enhances California' s efforts to achieve the statewide 75 percent recycling goal by 2020, established in AB 341 and strengthen the implementation of mandatory commercial organics recycling established in AB 1826. As AB 341 set the roadmap to fmd beneficial uses for organics and divert them from landfills, AB 1594 specifically phases the credit allowed from biosolids being utilized as " Alternative Daily Cover" and classifies all green waste as regular disposal. Consequently, landfills will be required to divert organic waste, which includes biosolids, from the landfill, and therefore will no longer be a viable option for disposal in the future.

City staff engaged Waterworks Engineers to develop an update to the City' s Biosolids Master Plan ( Plan). The purpose of the Plan is to evaluate the biosolids disposal options available to the City in terms of capital costs, operating costs, and other non- cost considerations to determine the preferred disposal method that will be pursued in the future. Five different alternatives were studied including various forms of land application in other areas, incineration, a thermal hydrolysis process, and a high temperature thermal process known as pyrolysis. The various alternatives were researched and ranked according to their impact on the following criteria:

Cost, both capital and operational
Long term reliability
Public perception
Operational staffburden
Complexity ofthe regulatory permitting requirements
Based on the analysis, the pyrolysis alternative yielded the lowest net present value for the City.

Key benefits of this disposal option include the lowest overall cost, an automated conveyance systeln that is less labor intensive than other alternatives, the ability to eliininate any emerging containinant, and elimination of the need to purchase and maintain a land application site. The pyrolysis technology is a new emerging process and will need to be vetted prior to any significant investment to ensure long term scalability and reliability.

City staff may pursue multiple disposal options moving forward to ensure maximum flexibility and minimize risk that comes with reliance on a particular disposal method.

Council P^iority/ 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."
c: Ryan Bailey, Assistant Public Works Director
Attachments
2020 Biosolids Master Plan-( mi.nus proposals) ( available online) Packet Pg. 350 P cket Pg. 3t 4 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) y

CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: August 17, 2021 FROM: Chuck Aukland, Public ITEM NO. 4. 11( d) Works Director
APPROVED BY***
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s. N,.
ukl n l, H' ciblic Wc aks L' reGt ' i'S12421 ry ip} in, C"i ana 1/ 2421 [email protected]. ca.us btippin@cityofredding. org
SUBJECT: 4. 11( d)-- Award Request for Proposals No. 5211 and Authorize Execution of a Purchase Order for the Selected Manufacturer' s Biosolids Dryin and P rolysis System Recommendation
Authorize the following actions relative to Request for Proposals, Bid Sched ule No. 5211, to provide equipment for the Clear Creek Wastewater Treatment Plant Biosolids Drying and Pyrolysis System:
1) Award to Bioforcetech Corporation;
2) Authorize the City Manager, or designee, to execute a purchase order ( PO) for equipment submittals, fabrication, and delivery of the Clear Creek Wastewater Treatment Plant Biosolids Drying and Pyrolysis System, for a total of$3, 982, 866. 25; and 3) Autharize the City Manager to approve an additional $ 200, 000 on the PO to cover the cost of an extended 5- year eguipment warranty, for a total PO amount of$4, 182, 866. 25.

Fiscal Impact
Funding for this project will come from the Wastewater Utility Fund. The City Council Council) previously approved the Biosolids Master Plan which estimated the total pilot project cost to be approximately $ 6. 1 million. Sufficient funding for the proposed Bioforcetech equipment is included in the Council approved 2021- 22 Wastewater Utility budget.

Alternative Action
The Council may choose not to award Request for Proposals No. 52]] or authorize the PO to be executed at this time and direet staff not to continue pursuing this project. This alternative will delay or eliminate the construction of the project. This may present regulatory, technical and financial impacts to the Wastewater Utility.

Packet Pg. 351 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) Report to Redding City Council August 10, 2021
Re: 4.11( d)-- Award RFP No 5211 Page 2
Background/Analysis
At its meeting on August 18, 2020, the Council accepted the Wastewater Treatment Plant Biosolids Master Plan ( Plan). The Plan recommended an emerging technology for the handling and disposal of Biosolids known as Pyrolysis. In response, the Council awarded a consulting and professional services agreement in October 2020 with Water Works Engineers ( WWE) to begin the preliminary design process for the Clear Creek Waste Water Treatment Plant ( CCWWTP) Biosolids Drying and Pyrolysis pilot project. As part of the preliminary design process, a Request for Proposals ( RFP) was developed to solicit multiple manufacturers of the pyrolysis equipment to provide an equivalent element evaluation of their ability to provide the required process for both pilot scale and ultimate build out systems.

Five proposals were received on July 1, 2021; however, two of the proposals were deemed nonresponsive for failure to meet required elements in the solicitation. The remaining three proposals received included Chartech Solutions, Anaergia, and Bioforcetech Corporation. The proposals were reviewed by the selection panel made up of Public Works and Treatment Plant staff, as well as WWE, and evaluated on the following factors: manufacturer' s experience, proposed system operational complexity, system capacity, required ancillary systems and utilities, maintenance requirements and availability of spare parts and service, Biochar management plan, submittal and equipment delivery schedule, exceptions taken to the advertised RFP, and system cost ( capital, operation and maintenance). Applying these criteria to the proposals, the selection panel determined that Bioforcetech Corporation is the best candidate to provide the required services and equipment for this project.

Once the manufacturer of the equipment has been approved, staff will execute a purchase order and work with WWE to complete nal design of the facility for advertisement construction bids.

It is anticipated that construction will begin in late 2022 with an estimated completion date and facility start- up in 2023.

Council Prio ity/ City Manager Goals
Government of the 21 st Century — `Be relevant and proactive to the opportunities and challenges of today' s residents and workforce. Anticipate the future to make better decisions today."
Attachments
Compensation Schedule
Proposal Rankings
8- 18- 20 Staff Report ( available online)
12- 15- 20 Staff Report ( available online)
Packet Pg. 352 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) t P' N I HE LE
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Packet Pg. 353 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) RFP 5211 - BIOSOLIDS DRYING AND PYROLYSIS SYSTEM FOR
CCWWTP

SE ECTION MEMBERS
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Anaergia 270 295 370 485 1420 1600 4170 3
Chartech Solutions 465 560 530 565 2120 1000 4775 2
P:\ CCWWTP Pyrolysis 2637\ Design\ Documents\ Fee Proposals\ Rating sheets\Consultant Selection Table - Manuf Equip RFP 5211 8/ 3/ 2021 Packet Pg. 354 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW GI " Y F

CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: August 2, 2022 FROM: Chuck Aukland, Public ITEM NO. 4. 11( a) Works Director
APPROVED BY***
ukl nd, H' ciblic Wr aks L'ireGt ' 7( 1/ 242? 5 ri I cMaa d, Ass tant C"ity = :, 7/?/ 242? [email protected]. ca.us btippin@cityofredding. org
SUBJECT: 4. 11( a)-- Award Bid Schedule No. 5293, Job Order No. 2665, Clear Creek Wastewater Treatment Plant P rolysis Phase 1 Pro' ect
Recommendation
Authorize the following actions relative to Bid Schedule No. 5293 ( Job No. 2665) Clear Creek Wastewater Treatment Plant Pyrolysis Project Phase 1:
1) Award to SNL Group, Inc., in the amount of$3, 927, 250; 2) Approve an additional $ 795, 000 to cover the cost of administration and inspection fees and$ 845, 000 for project development costs;
3) Approve $ 395, 000 to provide construction contingency funding; 4) Authorize the City Manager to approve additional increases in either the construction management or construction contingency amounts up to a total of$75, 000; and 5) Find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, per Section 15301( b) - Existing Facilities, and Section 15303( d) New Construction or Conversion of Small Structures.

Fiscal Impact
The Clear Creek Wastewater Treatment Plant Pyrolysis Phase 1 Project ( Project) is being funded by the Wastewater Utility Funds. Sufficient funding for the project is available in the 2022- 23 Wastewater Utility budget.

Cost Summa
Item Estimated
Pro' ect Develo ment Costs 845, 000
Construction Contract+ Contin enc 4, 322, 250
Contract Administration, Ins ection, and Testin $ 795, 000 Additional Cit Mana er Authorit 75, 000
Total Pro' ect Costs 6,037,250
Packet Pg. 355 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) Report to Redding City Council July 25, 2022
Re: 4.11( a)-- Award Bid Schedule No. 5293 CCWINTP Pyrolysis Phase 1 Project Page 2 Project cost components are estimates and some shifting of the project development and construction contingency funds may be necessary to balance the project within the approved budget.

Alter native Action
The City Council may choose to not award the bid for the Clear Creek Wastewater Treatment Plant Pyrolysis Phase 1 Project and provide staff with alternative direction. Without this project, staff would need to pursue other alternatives to managing biosolids disposal at the treatment plant. This may present regulatory, technical, and financial impacts to the Wastewater Utility in the near future.

Background/ Analysis
The Clear Creek Wastewater Treatment Pyrolysis Phase 1 Project is an accepted project from the Wastewater Treatment Plant Biosolids Master Plan. The City Council authorized staff to solicit engineering services to design and construct the pilot scale project on October 6, 2020. The project is using an emerging technology for the handling and disposal of biosolids at the wastewater treatment plant. The following items are included in the scope of this project:
installation of biodryers and pyrolysis units, installation of conveyors and elevated support structure with walkway for access and utility routing, installation of a transformer and electrical building, construction of concrete slabs, installation of a pre- engineered metal canopy, and site work which includes yard piping, grading, paving, fencing, and electrical facilities.

Attached is a tabulation of bids received and opened on July 19, 2022, for the Clear Creek Wastewater Treatment Plant Pyrolysis Phase 1 Project. The low bid in the amount of$ 3, 927, 250 was received from SNL Group, Inc., of Redding, California. The engineer' s estimate was 3, 894,000. Total project development costs for this project are estimated to be $ 845, 000.

Project development costs include engineering, surveying, right- of-way, environmental, and consultant services. Total construction administration and inspection costs for this project are estimated to be $ 795, 000. Construction administration and inspection costs include staff time and the consultant fee received through RFP selection. The consultant' s fee includes contract administration, inspection services, and application programming, which is unique to this project. Staff will offer to the Council approval of the consultant selection and execution of the professional services agreement at a later meeting prior to the beginning of construction.

Staff has reviewed the project and determined that the project is Categorically Exempt from review under the California Environmental Quality Act ( CEQA) Guidelines, per Section 15301( b) - Existing Facilities and Section 15303 ( d) New Construction or Conversion of Sma11 Structures. Class 1 exemptions include minor alteration of existing public facilities and equipment. Class 3 exemptions include the construction of new small facilities or structures, and installation of new equipment. The project will result in negligible or no expansion of use, and a limited amount of new equipment and structures will be constructed. The project has been reviewed for sensitive resources and will not have a significant effeet on biological or cultural resources such as th.reatened or endangered species or their habitats, sensitive vegetation communities, tribal lands, or tribal cultural resources. The project has no potential to have a significant effect on the environment.

Packet Pg. 356 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1) Report to Redding City Council July 25, 2022
Re: 4.11( a)-- Award Bid Schedule No. 5293 CCWINTP Pyrolysis Phase 1 Project Page 3 Council Pr io^ity/ City Manager Goals
This agenda item is a routine operational item.

Attachments
Location Map
Notice of Exemption
Bid Tabulation
Staff Report_ October 2020
Packet Pg. 357 Attachment: Previous Staff Report 7-18-23 (4.11(g)--Approve Increase to Project Budget for CCWW Treatment Plant Pyrolysis Phase 1)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept report and provide direction regarding potential updates to the Redding Municipal Code and Redding Police Department Policies concerning camping on City of Redding property.

Fiscal Impact
This item will not likely have any impact on the General Fund.

Alternative Action
The City Council (Council) could choose to not accept the report nor provide direction to staff.

Background/Analysis
In June 2024, the United States Supreme Court overturned a lower court ruling that a Grants Pass, Oregon ordinance violated the constitution. This ruling effectively also overturned a 2019 ruling involving the City of Boise Idaho which, at the time, required the City of Redding (City) to modify its Ordinance and Redding Police Department (RPD) Policies.

Considering the Supreme Court decision, the intent of this item is for the City Council to receive presentations from the City Attorney and Police Chief on current encampment practices and potential changes that could be considered to the Redding Municipal Code and RPD Policies.

It is important to note that regardless of any recent changes in law, the City will still place a priority on helping those in our community living without shelter through the many grants we have received and the programs we have implemented.

MEETING DATE: August 20, 2024
ITEM NO. 9.1(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.1(a)--Consider providing direction regarding the City of Redding's approach to public-camping.

Barry Tippin, City Manager
Packet Pg. 358
Report to Redding City Council August 14, 2024
Re: 9.1(a)--Consider providing direction regarding the City's approach to camping Page 2 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.”
Packet Pg. 359

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept the report regarding a City of Redding fiber optic broadband network and provide direction on next steps.

Fiscal Impact
There could be no fiscal impact if the City Council (Council) accepts the report and provides no further direction to staff. If the Council directs staff to issue a request for proposals or request for qualifications for a City of Redding (City) fiber optic network, the cost could greatly vary depending on how the City wants to pursue it. A full build out of a City fiber optic network to all buildings and City customers could exceed $180 million which could be financed by the City, private developers, or a combination of both.

The City currently pays recurring payments to AT&T and Spectrum for all internal connectivity.

These costs increase over time and the City currently has no way to manage or administer throughput without continual cost increases.

Alternative Action
The City Council could choose to not accept the report.

Background/Analysis
Internet has become an essential part of everyday life for people, businesses, and governments.

The need for fast and reliable internet allows for a broader range of internet use and are major factors when selecting an internet service provider (ISP) by a customer.

MEETING DATE: August 20, 2024
ITEM NO. 9.1(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.1(b)--Consider report regarding a City of Redding fiber optic broadband network.

Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 360
Report to Redding City Council August 15, 2024
Re: 9.1(b)--Accept Report regarding a City of Redding fiber optic broadband network Page 2 Broadband, which is the term used for high speed internet, can be utilized over Digital Subscriber Line (DSL), Cable, Wireless, and Fiber Optic Cable. Speeds and reliability can drastically vary across the various forms of broadband. The Federal Communications Commission defines broadband as 100 Megabits per second (Mbps) downstream speed (amount of data a person can receive) and 20 Mbps upstream speed (amount of data a person can send).

Fiber optic cable is capable of up to symmetrical speeds of up to 25 million Mbps. This is exceptionally faster than all other broadband options and is the superior broadband option.

Fiber optic cable is considered a 100-year technology due to reliability and speeds, regardless of weather, user traffic and distance, with no throughput. As a result of better speeds and reliability, users have clearer streaming of high-resolution videos, smooth online meetings and appointments, fast downloading and uploading, and better online security.

In 2017, Council Member McElvain presented two separate reports to the Council that outlined options to pursue fiber broadband in the downtown core. The Council Members at the time were concerned regarding the burden on the City’s general fund. Council agreed for staff to proceed in gathering more information about pursuing an internet utility for the City. A Master Broadband Plan was submitted in April 2019 by Geographical Information Center at California State University – Chico (GIC). The plan completed by GIC recommended potential upgrades and expansion to existing infrastructure and assessment of services offered by ISPs.

On September 3, 2019, Council approved an agreement with EntryPoint Networks to develop a City-wide Internet Utility Master Plan including a risk and cost analysis. EntryPoint’s Broadband Masterplan, took in all regions of the City which included the City’s demographics and business uses. EntryPoint’s Broadband Master Plan takes Redding Electric Utility’s (REU) efforts into consideration and provides information that can be used in a strategy that would allow broadband service to the entire community including cost structure, risk analysis, and potential phases of construction.

At that time, REU had intentions to connect the City’s Power Plant to fast trip relays at the Oregon Street substation via fiber optic cable. REU’s intent was to provide a fiber optic ring around the City, utilizing existing right-of-way and pole connections via REU’s 115kV transmission system. This would have connected critical electric infrastructure and City buildings. Due to changes in technology and business processes, ultimately REU did not require the fiber optic ring around the City and ceased the project.

On May 4, 2021, the Council accepted the City broadband project update and postponed further development of fiber-to-the-home internet utility until the fiber ring is constructed or until legislation directs otherwise. The key to implementing fiber-to-the-home during this time was REU’s buildout of the fiber optic ring. This would have been the backbone to build out the fiber optic cable infrastructure to residents and businesses. As the REU project was discontinued, so to was the City’s pursuit of a city-wide fiber system.

In the past year, the City has been contacted by multiple fiber optic development companies on what the City would require in deploying a fiber optic network in the City. Many cities throughout California have implemented various options of their own fiber optic networks in their respective cities. This includes city-owned and operated broadband service, and public private partnerships in broadband service. Many cities cite economic benefits for implementing fiber optic networks in their communities as a way to anchor and attract businesses.

Packet Pg. 361
Report to Redding City Council August 15, 2024
Re: 9.1(b)--Accept Report regarding a City of Redding fiber optic broadband network Page 3 The recently approved 2045 General Plan includes supporting infrastructure to promote economic activity. This includes implementing fiber optic technology, public WiFi in downtown, parks and other key areas around the City. The 2045 General Plan also includes reducing barriers to equitable technologies, and encourage economic drivers to anchor institutions for broadband rollout.

There are various options the City can pursue if the Council chooses to pursue a City fiber optic network:

Option 1
The City could own and build a fiber optic network. This option was previously discussed in 2017 and the years following, and the Council was concerned with the additional burden to the general fund. This would not be a viable option as the costs are likely to exceed $180 million.

Option 2
Fiber optic cable has slowly been rolled out in various parts of the City from incumbent ISPs.

The City is not aware of the extent of incumbent fiber optic installation that has occurred in the City. The City has the option to allow fiber developers to pursue normal development and use of the public right-of-way.

Option 3
If the City were to take an action with pursuing a City fiber optic network, City staff would recommend forming a public private partnership or hybrid model with a fiber optic developer.

This can be done by either issuing a request for proposals or a request for qualifications. This would allow the City to have an influence in how a fiber optic network is developed in the City.

The City can also seek other possible partners with other local agencies such as school districts, colleges, Shasta County, and federal or state agencies.

The City has the option to exchange certain services that could assist in offsetting costs for the City and its users. With rising broadband costs for the City, the City has the option to leverage the use of City-owned power poles and can streamline the permitting process for a fiber optic developer. The City could ask for dark fiber to all City buildings and/or reduced rates for customers to help offset costs. Dark fiber would allow the City to operate its own broadband service without needing to depend on an ISP for internal connectivity. The City could also pursue implementing public WiFi downtown or at the City’s parks in line with the 2045 General Plan. The City may need to contribute some capital costs depending on how much influence the City wants over network operations.

In the partnership model there is the option of a closed or open access network. The open access model would allow multiple ISPs to operate on the fiber optic cable network managed by a neutral host versus one ISP for closed access. Users being able to select from multiple ISPs of their choice allows for competition from the ISPs in an effort to keep rates down.

In a closed access network there would be a set price for all users and only one ISP to operate on the fiber optic Network. If another ISP wanted to enter the City market, they would need to install their own fiber optic cable. For these reasons a closed access network may not be the best option.

Packet Pg. 362
Report to Redding City Council August 15, 2024
Re: 9.1(b)--Accept Report regarding a City of Redding fiber optic broadband network Page 4 With the Council’s direction, staff can either cease discussions with fiber development companies and monitor future fiber deployment in the City or pursue a partnership through a request for proposals or a request for qualifications, to bring a fiber optic network to the City.

Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required
Council Priority/City Manager Goals
• This is a routine operational item.

Attachments
EntryPoint Network Broadband Master Plan 2020
Geographical Information Center Redding Master Broadband Plan 2019 Packet Pg. 363
Packet Pg. 364 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 365 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 366 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 367 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 368 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 369 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband https://phys.org/news/2018-04-fiber%
Packet Pg. 370 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 371 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband https://www2.deloitte.com/content/dam/Deloitte/us/Documents/ https://www2.deloitte.com/
Packet Pg. 372 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 373 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 374 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 375 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 376 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 377 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 378 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband https://muninetworks.org
/
Packet Pg. 379 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 380 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 381 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 382 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 383 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 384 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband https://
https://
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Packet Pg. 385 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 386 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 387 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 388 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 389 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 390 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 391 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 392 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 393 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 394 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 395 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 396 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 397 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 398 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 399 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 400 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 401 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 402 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband Packet Pg. 403 Attachment: EntryPoint Network Broadband Master Plan 2020 (9.1(b)--Accept Report regarding a City of Redding fiber optic broadband 1 City of Redding
Master Broadband Plan
Telecommunications Infrastructure
Draft Version March 2019
Packet Pg. 404 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 2 City of Redding– Master Broadband Plan
Telecommunications Infrastructure
California State University, Chico
Geographical Information Center
Elaborated by
Jason Schwenkler, Geographical Information Center (GIC) Director David Espinoza, GIC Broadband Specialist (lead author)
Courtney Farrell, GIC Project Manager
Susan Strachan, GIC Project Manager
Tyler Boyle, Senior GIS Analyst
Alice Patterson, Project Analyst
Cynthia Baricevic, GIS Assistant II
Dan Lucero, Assistant III
Luke Scholl, Technical Editor
Packet Pg. 405 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 3 1. Contents

1. Contents................................................................................................................................................3

2. Executive Summary...............................................................................................................................5

3. Introduction ..........................................................................................................................................6

3.1 Broadband Importance and Applications in Rural Northern California........................................8

3.2 Broadband Definition (Federal and State) and California Coverage Goal ..................................10

3.3 Broadband Demand Drivers........................................................................................................12

4. Current Broadband Landscape ...........................................................................................................14

4.1 Broadband Services Availability (Served, Unserved and No Service Areas)...............................14

4.1.1 Wireline and Fixed Wireless Service Availability ................................................................15

4.1.2 Advertised Download Speed Availability by ISP..................................................................18

4.1.3 Measured Broadband Service and Download Speed Availability.......................................31

4.2 Broadband Services Adoption.....................................................................................................32

4.3 Middle-Mile Service Availability..................................................................................................33

5. Broadband Infrastructure Upgrade Recommendations.....................................................................35

5.1 Middle- and Last-Mile Network Upgrade Options......................................................................35

5.1.1 Fiber-to-the-Home (FTTH) Network Design........................................................................35

5.1.2 High-Level Fiber-Optic Network Cost Assessment..............................................................41

6. Policy Recommendations to Support Broadband Expansion .............................................................46

6.1 Policy Issues and Considerations................................................................................................46

6.1.1 Assess and Implement Smart City Capabilities...................................................................46

6.1.2 Ease for Broadband Infrastructure Deployments...............................................................46

6.1.3 Priority Areas for Broadband Infrastructure Deployments ................................................46

6.1.4 Partnerships for Broadband Infrastructure Projects ..........................................................47

6.1.5 Promote Broadband Services Adoption to Foster Economic Development.......................47

6.2 Policies for Promoting and Improving Telecommunications Infrastructure ..............................47

6.2.1 Dig-Once Policy ...................................................................................................................48

6.2.2 Develop Conduit Specifications ..........................................................................................48

6.2.3 Master Lease Agreement....................................................................................................48

6.2.4 Streamline Application Process and Permit Fees ...............................................................49

6.3 Sample Telecommunications Element for the City of Redding General Plan.............................49

7. Recommendations to Improve Broadband Service Adoption ............................................................52 Packet Pg. 406 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 4 8. Conclusion...........................................................................................................................................53

9. Appendices..........................................................................................................................................54

9.1 Appendix A - Broadband Service Benchmarks............................................................................54

9.1.1 Downstream/Upstream Broadband Speeds (Mbps) ..........................................................54

9.1.1 Supplemental Benchmark Metrics......................................................................................54

9.2 Appendix B: Middle-, Second- and Last-Mile Broadband Technologies.....................................55

9.2.1 Wireline Broadband............................................................................................................56

9.2.2 Fixed Wireless Broadband ..................................................................................................57

9.2.3 Mobile Broadband ..............................................................................................................58

9.2.4 New Technologies for Middle- and Last-Mile.....................................................................59

10. Glossary...........................................................................................................................................61 Packet Pg. 407 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 5 2. Executive Summary
The following Master Broadband Plan for the City of Redding aims to provide a comprehensive assessment of the current landscape of fixed broadband services for residential, business and industrial customers, recommendations for expanding and upgrading broadband infrastructure and services, and recommendations for developing and implementing local government policies which can support broadband infrastructure deployments, and improving broadband service adoption. The broadband assessment includes both fixed wireless and wireline services offered by Internet service providers (ISPs) and uses publicly available data from the California Public Utilities Commission (CPUC) and its Broadband Interactive Map. The recommendations for expanding broadband infrastructure and upgrading services focus on deploying a high-capacity and high-speed fiber-optic backbone to reach areas of interest (i.e., for economic development) in the city. The recommendations for developing and implementing local policies focus on reducing technical and economic barriers for new broadband infrastructure deployments and streamline permit and authorization process in public rights-of-way. The proposed policies also guide incorporating smart city capabilities in the City of Redding. The recommendations for improving broadband adoption include forming partnerships with existing organizations and programs to establish credibility and identifying best practices for outreach, implementation, follow-through and success.

Packet Pg. 408 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 6 3. Introduction
The City of Redding, founded in 1887, the county seat of Shasta County, is located along the Sacramento River, 162 miles north of Sacramento at the northern end of the Sacramento Valley. Figure 1 shows the location of Redding in California, "The Golden State". The city has a population of 91,236 (2017) 1 and 38,679 housing units (2017)
1 in over 33 square miles.

Relevant demographic statistics of Redding include the following:
 Average household size (2017): 2.43
1  Median age (2017): 38.21
 Income per capita (2017): $26,9961
 Average household income (2015): $65,3921
 Median household income (2017): $46,3891
Figure 1. City of Redding location in California and Shasta County The City of Redding is the center of trade and commerce for the upstate region of Northern California.
2 Redding has received a number of state grants over the last three years that are meant to assist in revitalizing downtown Redding. Among the numerous projects supported by these grants is a new Shasta County Courthouse currently under construction.

Redding has a wide variety of industries, including Sierra Pacific Industries, one of the largest lumber producers in the U.S. Other prominent business in Redding include Seco Manufacturing, and Knauf Fiberglass. Redding is home to Mercy Medical Center, one of the largest employers in all of Shasta County.

Redding also has its own municipal electrical utility, the Redding Electric Utility (REU), which provides electric utility services for residential and commercial customers. Shasta County as a whole has a civilian labor force of 75,400 individuals as of 2015. Shasta County’s three largest industries by number of employees were the service industry, government, and retail trade. Redding is also home to Mercy Medical Center, a 267-bed hospital that offers some of the most comprehensive health care in Northern

1 U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates 2 City of Redding. https://www.cityofredding.org
Packet Pg. 409 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 7 California. Shasta County is also home to 41 public elementary schools, 8 middle schools, and 15 high schools, as well as Shasta College and Simpson University. Lastly, Redding has a number of parks, an extensive system of trails through natural spaces, as well as the Redding Aquatic Center, which is the largest authorized provider of American Red Cross Learn-to-Swim Program in Shasta County.

Redding Electrical Utility (REU)
Redding is home to the Redding Electric Utility (REU), which provides electric utility services for residential and commercial customers. The REU was founded in 1921 after the utility was purchased from PG&E. In recent years, the REU has made great strides toward including various renewable sources of power including wind generation. The REU serves approximately 44,000 residential and commercial customers within the City of Redding. As of 2017, the REU’s mix of power resources consisted of 47% large hydro, 25% natural gas, 23% wind, and 5% small hydro power. The REU also boasts an impressively low number and short duration of outages, less than half that of PG&E. The REU has 726 miles of 12,000 volt power lines, 11 substations, and 2 switchyards that provide power to a service territory of 61 square miles.

The presence of the publicly owned REU and its extensive infrastructure, as shown in Figure 2, is a valuable asset that may potentially be leveraged in order to accelerate and reduce costs of future broadband deployments.

Figure 2. Redding Electric Utility infrastructure
The City of Redding is the largest city in the Shasta Cascade region and is the sixth-largest city in the Sacramento Valley and continues growing local businesses as well as attracting new ones. This report aims to provide recommendations for upgrading broadband infrastructure and services in an optimal and cost-efficient manner to continue fostering a modern competitive environment with access to fast and affordable internet services, needed for both residential and business customers.

Packet Pg. 410 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 8 3.1 Broadband Importance and Applications in Rural Northern California Education
High-speed access is integral in connecting teachers to students, to parents and to educational resources. The rural digital divide diminishes access to educational opportunities, resources and sources of academic and professional support3. Without adequate high-speed connectivity, rural schools and students are challenged to obtain skills and information needed for success. Teachers and administrators also benefit from the capabilities associated with access to high-speed Internet service. Many rural school teachers and administrators cite connectivity limitations as the primary obstacle to effectively using technology in the classroom4. Additionally, students may lack broadband (or any) connectivity at home, putting them at a disadvantage when completing assignments that require online access and interaction.

As more bandwidth intensive material moves online–such as educational videos, interactive learning tools, and video conferencing tools for teachers–connection speed is quickly becoming a major issue for rural educators5. By eliminating these barriers through expanded access, schools can provide curriculums that are currently unavailable due to limited resources or lack of subject-matter experts.

Health Care
The health care sector is emerging as a heavy user of telecommunications services. Improved imaging techniques produce large data files. Moving those files between providers requires substantial capacity. Telecommunications may be a limiting factor for the location of health care services. A location that does not have the telecommunications capacity for efficiently uploading and downloading large imaging files may find providers deciding either not to locate there or limit the services provided there6.

Telehealth is a care delivery mode that can provide access to specialists for treatment of multiple conditions. It can provide more effective and efficient health care delivery by connecting physicians with physicians and patients with physicians7. The evidence for technologies that lower costs, connect remote populations, and expand the reach of urban-centered medical expertise is strong. Access to reliable, sufficient and affordable broadband is increasingly important to providing high-quality health care, and it has become an essential infrastructure need for all hospitals and health systems8.

Agriculture
Rural broadband planning has historically excluded the importance of fast, reliable Internet access for agricultural areas. The rise of “precision agriculture” combined with increasing interest in the use of “telematics” and “big data” for agriculture, raises the question of how available broadband connectivity

3 Howley, C., Kim, K., & Kane, S. (2012, June). Broadband and Rural Education: An Examination of the Challenges, Opportunities, and Support Structures that Impact Broadband and Rural Education. 4 Ibid.
5 Ibid.
6 Kuttner, H. (2012). Broadband for Rural America: Economic Impacts and Economic Opportunities. Broadband for Rural America: Economic Summit on the Future of Rural Telecommunications. Washington, DC. 7 Kvedar, J. C. (2014, February). Connected Health: A Review of Technologies and Strategies to Improve Patient Care with Telemedicine and Telehealth. Health Affairs, 33(2), 194-199. 8 Rural Health Information Hub. (2017). Retrieved from https://www.ruralhealthinfo.org/topics/healthinformation-technology. Retrieved from https://www.ruralhealthinfo.org/.

Packet Pg. 411 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 9 is for U.S. Farms9. Simply defined, precision agriculture is the application of information technology to farm-level production operations and management decision making. Precision agriculture also offers opportunities for improved farming efficiency, food safety and enhanced environmental sustainability10.

Broadband is increasingly becoming the backbone for innovative technological tools farms and ranchers us to maintain greater control over plan and animal production, processing, distribution, and storage resulting in greater efficiencies and lower prices, safer growing conditions, safer foods and reduced environmental and ecological impact.

Manufacturing
According to the National Association of Manufacturers, manufacturers leverage the Internet to compete in global markets, deploy new technologies, connect their workforce and their customers, reduce costs, cut waste, enhance the environment and create safer, more reliable products11.

Manufacturing establishments in rural areas are involved in a variety of sectors: value-added food production, natural resource processing, infrastructure management and clean-energy facilities. For these industries, adequate broadband service has been documented as necessary for food supply chain management, mining safety and transportation and logistics12.

Economic Development
Broadband availability is positively related to employment growth. This relationship is stronger in areas with lower population density consistent with the theory that smaller or more isolated areas may benefit more from high-speed connections, giving businesses in these areas access to larger markets13.

The overall relationship between broadband expansion and employment growth is positive. Moving from no broadband providers to 1-3 providers (the FCC groups 1-3 providers together in its reporting) is associated with employment growth that is higher by 6.4 percentage points over the seven-year period from 1999 to 200614. Available broadband speed is also a factor in economic growth. Research shows that offering the minimum broadband service to all businesses and residents is not enough to close the rural digital divide. Poverty levels are about 2-6 percentage points lower in rural counties with high download speeds compared to otherwise similar counties15. There is a causal relationship between broadband adoption in rural areas (defined as county-level adoption rates >60%) and higher levels of median household income growth and reduced unemployment when compared with similar counties that did not meet the threshold)16.

9 Whitacre, B., Gallardo, R., & Strover, S. (2014, June). Broadband's contribution to economic growth in rural areas - Moving towards a causal relationship.
10 Aubert, B., Schroeder, A., & Grimaudo, J. (2012). IT as enabler of sustainable farming: An empirical analysis of farmers' adoption decision of precision agriculture technology. 11 National Association of Manufacturers. (2017). Retrieved from www.man.org. 12 Xu, L., Wu, H., & Shancang, L. (2014, November). Internet of Things in Industries: A Survey. IEEE Transactions on Industrial Informatics, 10(4).
13 Kolko, J. (2010). Does Broadband Boost Local Economic Development. Public Policy Institute of California, San Francisco. Retrieved from http://www.ppic.org/content/pubs/report/r_110jkr.PDF 14 Ibid.
15 Whitacre, B., Mark, T., & Griffin, T. (2014). How COnnected are Our Farms. Choices: The Magazine of Food, Farm, and Resources Issues.
16 Ibid.

Packet Pg. 412 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 10 Workforce Development
Broadband increases learning opportunities in rural communities through online education.

Distance, online, and hybrid instruction provide access to learning for individuals who cannot always be physically present in a traditional classroom setting or who may not be available at the specific times classes are being offered. According to the Pew Research Center17, 54% of Americans go online to look for job-related information and 45% have applied for a job online. Employers need broadband to access online training and classes to improve their employees’ skills. Many businesses do not have the budgets to send employees to professional development or are too small to send an employee away from operations. Bringing professional development in-house eliminates those challenges.

Tribal Communities
American Community Survey data shows that residents of tribal lands often lack basic infrastructure and telecommunications services. Tribal lands are among the most underserved areas in terms of broadband service, often due to remote and challenging terrain, low incomes, lack of expertise with telecommunications and barriers associated with bureaucratic government programs (U.S. Government Accountability Office, 2016)18 (Morran, 2016). As a result, the economic, educational and communication benefits associated with broadband are largely absent for most people living on tribal lands (Broadband for Tribal, n.d.).

Emergency Services
Scarcity of broadband capacity in rural areas limits emergency services’ communication capacities and response capabilities. Cutting-edge technologies are critical for public safety communications allowing first responders to send and receive critical voice, video and data to save lives, reduce injuries, prevent crime and terror and notify community members about emergencies and disasters. Rural geographies are in need of integrated and interoperable systems to increase capacity, security and accessibility among emergency responders.

3.2 Broadband Definition (Federal and State) and California Coverage Goal The term "broadband" commonly refers to high-speed Internet access that is always on and faster than traditional dial-up access (56kbps). This subsection presents federal and state definitions of broadband and statistics of served, underserved and unserved areas based on these definitions.

The Federal Communications Commission (FCC) defines advanced telecommunications capability (broadband) primarily in terms of downstream and upstream speeds, as this is a particularly useful metric for analyzing the deployment of these services. In the 2015 Broadband Progress Report19, the FCC updated the definition of broadband to 25 Mbps downstream and 3 Mbps upstream (previously defined as 4 Mbps downstream and 1 Mbps upstream). In 2017, the California legislature changed the definition of unserved areas to areas where broadband is offered at slower speeds than 6 Mbps downstream and 1 Mbps

17 Pew Research Center Internet & Technology. (2015). Retrieved from www.pewinternet.org/2015/11/19/1-theinternet-and-job-seeking/ 18 https://www.gao.gov/
19 Federal Communications Commission (FCC). (2015, January). 2015 Broadband Progress Report. Retrieved June 2017, from https://apps.fcc.gov/edocs_public/attachmatch/FCC-15-10A1.pdf Packet Pg. 413 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 11 upstream20. For more details on broadband service benchmarks see Appendix A - Broadband Service Benchmarks.

According to the FCC’s 2016 Broadband Progress Report21, nationwide there is a population of 33,981,660 (10% of the total population) without access to fixed broadband at current FCC broadband speed rates (25 Mbps downstream/3 Mbps upstream). Based on residence area, 10,551,623 residents without access are located in urban areas, and 23,430,037 are located in rural areas, accounting for 4% and 39% of the urban and rural population, respectively. At the state level, there is a population of around 2 million people (5% of the state population) without access to fixed broadband services at FCC speed rates. Breaking down this population by residence area, 920,182 of these residents are in urban areas (2% of urban population) and 1,096,984 are in rural areas (61% of rural population). Regarding tribal lands in California, 29,052 people (51% of the population) have no access to fixed broadband. This report also shows that only 37% of the United States’, and 43% of California’s populations have adopted broadband.

The California Public Utilities Commission’s (CPUC) latest broadband service availability data22, as of December 2017 and released on December 2018, provided statistics regarding recent availability for wireline (DSL, cable modem and fiber-to-the-home), and fixed wireless broadband services. Table 1 and Table 2 show the broadband availability by technology in California based on the CPUC’s definitions of served (at least 6 Mbps downstream and 1 Mbps upstream), unserved (less than 6 Mbps downstream or 1 Mbps upstream), and no service (no availability or no available data) areas. The goal of the State of California is to provide access to 98% of California households23.

Table 1. California households served by broadband by technology 2017 (CPUC 2018) Total
Households Served Households Unserved Householdswith Slow Service Unserved Households
with No Service
Wireline 13,113,840 12,505,598 95.4% 115,598 0.9% 492,645 3.8% Fixed
Wireless
13,113,840 450,718 3.4% 32,519 0.2% 12,630,604 96.3%
Combined 13,113,840 12,649,624 96.5% 92,128 0.7% 372,088 2.8% Table 2. California rural and urban households served by technology 2017 (CPUC 2018) Statewide
Households Served
Urban Households
Served
Rural Households
Served
Wireline 95.4 % 97.7% 53.6%
Fixed Wireless 3.4% 1.9% 30.8%
Combined 96.5 % 97.8% 72.5%

20 California Legislative Information (CALEG). (2017, October). AB-1665 Telecommunications: California Advanced Services Fund. Retrieved Dec 2017, from
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB1665. 21 Federal Communications Commission (FCC). (2016, January). 2016 Broadband Progress Report. Retrieved June 2017, from https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-6A1.pdf 22 California Public Utilities Commission (CPUC). California Broadband Validation Methods: Round 2017. Data as of Dec. 31st, 2016.
23 Pub. Util. Code section 281(b)(1) states; “The goal of the program is, no later than December 31, 2015, to approve funding for infrastructure projects that will provide broadband access to no less than 98 percent of California households.”
Packet Pg. 414 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 12 3.3 Broadband Demand Drivers
This subsection presents applications that, in recent years, have driven up broadband demand both in terms of customer and speed demands. There is an increasing reliance on broadband to perform multiple functions, and instances of consumers within a single household routinely using multiple applications simultaneously. According to the FFC's 2015 Broadband Progress Report24, the following applications are the main drivers for broadband demand:
 Video services: Video services provide a wide range of options including video streaming, video on demand (VoD), IP TV, video games and video conferencing. According to the 2014 Sandvine Report, real-time entertainment such as video streaming is responsible for over 67% of downstream bytes during peak periods25. Table 3 shows downstream speeds for video services recommended by three technology companies. Based on 2014 consumer statistics, approximately 77% of households in the United States have at least one high-definition television (HDTV) set, and about 46% of all households have multiple HDTVs.26 Video conferencing is also facing increasing levels of usage, such as for telemedicine and distance education.

Table 3. Recommended downstream speeds for video services Service Downstream Recommendation
HD video 5 Mbps Netflix
Ultra HD quality video 25 Mbps Netflix
720p video 6 Mbps Apple
1080p HD video 8 Mbps Apple
HD video 5 Mbps DISH
 Data services: According to the 2014 Sandvine report, web-browsing is responsible for approximately 10% of downstream data traffic during peak period Internet use. Data transfer is another application that is growing in demand and is commonly used in telecommuting.

Downstream speeds impact the time websites take to fully load, and the time files take to transfer from servers to user's devices.
 Voice services: Voice services have been replacing traditional telephone service by allowing users to make phone calls using broadband connections; also called VoIP technology. According to the 2014 FCC Local Competition Report, residential VoIP subscribers increased from 19.7 million in

24 Federal Communications Commission (FCC). (2015, February 4). 2015 Broadband Progress Report and Notice of Inquiry on Immediate Action to Accelerate Deployment. Federal Communications Commission Hearing, Washington, D.C., FCC 15-10, 21-25.
25 Sandvine Intelligent Broadband Networks, Global Internet Phenomena Report, 2H 2014 at 5 (2014), https://www.sandvine.com/downloads/general/global-internet-phenomena/2014/2h-2014-globalinternetphenomena-report.pdf (2014 Sandvine Report). 26 See Press Release, Leichtman Research Group, The Majority of TV Sets Used in U.S. Households are Now HDTVs, 4K Ultra HDTV in Early Stages of Development (Mar. 7, 2014), http://www.leichtmanresearch.com/press/030714release.html.

Packet Pg. 415 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 13 December 2008 to 37.7 million in December 2013.27 VoIP applications require a minimum of 100 kbps downstream and upstream speeds to enable real-time voice communications.  Social networking and cloud applications: Social networking applications have increased in demand and, as of 2015, approximately 73% of adults online use a social networking site of some kind28. Cloud computing has also risen in demand due to its capability to allow users to store and access data and information (photos, music, emails, documents, etc.) over the Internet.  Machine-to-machine applications: Machine-to-machine applicationsinclude smart meters, video surveillance, health care monitoring, transportation and package/asset tracking. In 2013, Cisco Systems reported that 33% of IP traffic originated with non-PC devices, but predicted that by 2018 the non-PC share of total IP traffic would grow to 57%.

This introduction section was intended to provide important broadband definitions and current context, both nation and statewide, to assist with understanding the importance of expanding broadband infrastructure deployments and adoption programs in the City of Redding. The following section presents the current broadband landscape in Redding based on CPUC’s broadband service availability data.

27 Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2013 at 14 (Oct. 2014),
http://transition.fcc.gov/Daily_Releases/Daily_Business/2014/db1016/DOC-329975A1.pdf. 28 Maeve Duggan & Aaron Smith, Social Media Update 2013, Pew Res. Internet Project (Dec. 30, 2013), http://www.pewinternet.org/2013/12/30/social-media-update-2013/.

Packet Pg. 416 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 14 4. Current Broadband Landscape

4.1 Broadband Services Availability (Served, Unserved and No Service Areas) This subsection presents the advertised broadband service availability in the City of Redding, based on the CPUC's broadband availability data as of December 2017 (released on December 2018). The advertised service availability data are collected by the CPUC from a majority of broadband service providers in the State. Most of the broadband availability is provided by last-mile broadband service providers
29 . Coverage data for wireline and fixed wireless providers are reported at the census block level.

The data are mapped and validated for accuracy using CPUC’s broadband validation methods30. For this report, broadband availability data plots are generated from the California Interactive Broadband Map31.

Table 4 shows the major residential and business Internet service providers in Redding and the technology used to provide services, from DSL, cable and fiber optics, to terrestrial fixed wireless.

Table 4. Technology offerings by Internet service provider Internet Service Provider Service Type Technologies Offered AT&T California Residential Only
 Asymmetric xDSL
 ADSL2, ADSL2+
Allstream Business US, Inc. Business Only  Other Copper Wireline Charter Residential & Business  Cable Modem DOCSIS 3.0  Optical Carrier / Fiber to the end user
Com-Pair Services Residential Only  Terrestrial Fixed Wireless Digital Path Residential Only  Terrestrial Fixed Wireless EarthLink Business, LLC Business Only
 Asymmetric xDSL
 Other Copper Wireline
 Cable Modem other than DOCSIS 1,

1.1, 2.0 or 3.0
Geolinks Residential  Fixed Wireless
Level 3 Communications Business Only  Other Copper Wireline XO Communications Business Only  Other Copper Wireline U.S. TelePacific Business Only  Optical Carrier / Fiber to the end user  Other Copper Wireline
PAETEC Communications Business Only  ADSL2, ADSL2+
 Optical Carrier / Fiber to the end user
NetFortris Acquisition Business Only  Other Copper Wireline MCI Business Only  Optical Carrier / Fiber to the end user  Other Copper Wireline

29 For a detailed description of last-mile broadband technologies see Appendix B: Middle-, Second- and Last-Mile Broadband Technologies.
30 California Public Utilities Commission (CPUC). California Broadband Validation Methods: Round 2017. Data as of Dec. 31st, 2016.
31 CPUC’s California Interactive Broadband Map available in http://www.broadbandmap.ca.gov/.

Packet Pg. 417 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 15 4.1.1 Wireline and Fixed Wireless Service Availability Wireline Service Availability
Figure 3 shows the wireline served status and downstream speeds in Redding as of December 2016, and Figure 4 shows a closer look at the served status and downstream speeds available in downtown Redding. Most of Redding has wireline service with downstream speeds between 100Mbps and 500Mbps.

Small pockets throughout the city are currently without wireline service. Downtown Redding is partially served with wireline downstream speeds between 100Mbps and 500 Mbps. Several blocks within downtown Redding are currently have no wireline service. It is important to note that for both cable- and DSL-based broadband service, coverage depends on the footprint of cable television and traditional telephone networks deployed in the city32.

Figure 3. Wireline served status and downstream speeds (December 2017) in the City of Redding

32 For more details on the technical capabilities and limitations of wired technologies, see Appendix B: Middle-, Second- and Last-Mile Broadband Technologies.

Packet Pg. 418 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 16 Figure 4. Wireline served status and downstream speeds (December 2017) in Redding’s Downtown Fixed Wireless Service Availability
Figure 5 and Figure 6 show the wireless served status and downstream speeds in Redding as of December 2017, as well as a closer look at the served status and downstream speeds available in downtown Redding. The majority of Redding is without wireless service; however, there are a number of isolated areas within the city with wireless service. Most of the scattered wireless service in Redding has downstream speeds between 10 and 25 Mbps; however, two small areas feature speeds between 1 and 2 Gbps. Downtown Redding is currently without any wireless service. Depending on the location of towers, access points or base stations, and line-of-sight (no visible obstructions) to customer premises, fixed wireless service can cover wide areas, however, environmental factors such as trees, buildings and topography can affect availability of the fixed wireless service33.

33 For more details on the technical capabilities and limitations of fixed wireless technologies, see Appendix B: Middle-, Second- and Last-Mile Broadband Technologies.

Packet Pg. 419 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 17 Figure 5. Fixed wireless served status and downstream speeds (December 2017) in the City of Redding.

Figure 6. Fixed wireless served status and downstream speeds (December 2017) in Redding’s Downtown.

Packet Pg. 420 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 18 4.1.2 Advertised Download Speed Availability by ISP
AT&T California
AT&T offers a mix of Asymmetric xDSL, ADSL2 and ADLS2+ technologies within Redding for residential customers. Figure 7 shows broadband speeds offered by AT&T in Redding (December 2016).

Asymmetric xDSL, speed offerings in the 768 Kbps-1 Mbps download range, are available on the outskirts of Redding (yellow areas). ADSL2 and ADSL2+ are offered in several scattered neighborhoods (brown and light-brown areas) with speeds 1 Mbps-10 Mbps, and more widespread (light-green areas) are speed offerings of 10-25 Mbps.

Figure 7. Broadband service speed offered by AT&T California in Redding (December 2017) Allstream Business
Allstream Business is a business-class-only broadband service provider that offers broadband to Redding businesses using technology categorized as other copper wireline technology. Figure 8 shows broadband speeds offered by Allstream Business in Redding (December 2016). Allstream Business offers download speeds between 1 and 3 Mbps in a small area near Cypress Avenue in Central Redding.

Packet Pg. 421 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 19 Figure 8. Broadband service speed offered by Allstream Business in Redding (December 2017) Charter
Charter offers cable Internet service to residential customers using cable technology. Figure 9 shows speeds offered by Charter in Redding (December 2017). Charter advertised between 100 and 500 Mbps download speeds in most areas of the city (blue areas).

Packet Pg. 422 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 20 Figure 9. Broadband service speed offered by Charter in Redding (December 2017) Charter also offers cable Internet service to business customers using fiber-to-the-end-user technology. Figure 10 shows speeds offered by Charter-Business in Redding (December 2017). CharterBusiness offers service with speeds varying from 10-25 (light-green areas) Mbps to speeds of 2 Gbps (black areas) in many scattered locations throughout the city.

Packet Pg. 423 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 21 Figure 10. Charter's business class broadband service coverage in the City of Redding (December 2017) Com-pair Services
Com-pair offers is a wireless service provider that concentrates on supplying rural parts of Northern California with broadband service. Com-pair serves only a small area in the northeast of Redding (Figure 11) with advertised speeds ranging from 10-25 Mbps (light-green areas).

Packet Pg. 424 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 22 Figure 11. Broadband service speed offered by Com-pair in Redding (December 2017) Digital Path
Digital Path is a wireless service provider that serves both business and residential customers in central and Northern California. Digital Path provides service to several scattered areas throughout Redding (Figure 12) with advertised speeds of 10-25 Mbps (light-green areas).

Packet Pg. 425 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 23 Figure 12. Broadband service speed offered by Digital Path in Redding (December 2017).

EarthLink Business
EarthLink Business is a business-class-only broadband service provider that uses a combination of asymmetric xDSL and other copper wireline. EarthLink serves only a small area in the southeast of Redding (Figure 13) with advertised speeds ranging from 1-3 Mbps (light-brown areas).

Packet Pg. 426 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 24 Figure 13. Broadband service speed offered by EarthLink Business in Redding (December 2017).

Geolinks
Geolinks is a broadband service provider that uses a terrestrial fixed wireless technology to provide broadband service to its customers. Geolinks serves only two small areas central Redding (Figure 14) with advertised speeds ranging from 1-2 Gbps (purple areas).

Packet Pg. 427 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 25 Figure 14. Broadband service speed offered by Geolinks in Redding (December 2017).

Level 3 Communications
Level 3 is a business-class-only broadband service provider that uses fiber-optic and other copper wireline technologies. Level 3 serves only a small area central Redding (Figure 15) with advertised speeds of 2 Gbps (black areas).

Packet Pg. 428 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 26 Figure 15. Broadband service speed offered by Level 3 in Redding (December 2017).

MCI
MCI is a business-class-only broadband service provider. MCI serves only a small area in central Redding and a larger area in southeast Redding (Figure 16) with advertised speeds ranging from 1-3 Mbps (light-brown areas) to 3-6 Mbps (brown area).

Packet Pg. 429 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 27 Figure 16. Broadband service speed offered by MCI in Redding (December 2017).

NetFortris
NetFortris is a business-class-only broadband service provider that uses toher coppwer wireline technology to provide broadband service in Redding. NetFortris serves only a small area in southeast Redding (Figure 17) with advertised speeds ranging from 1-3 Mbps (light-brown areas).

Packet Pg. 430 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 28 Figure 17. Broadband service speed offered by NetFortris in Redding (December 2017).

PAETEC Communications
PAETEC is a business-class-only broadband service provider. PAETEC serves only a small area in southeast (Figure 18) Redding with advertised speeds ranging from 50-100 Mbps (dark green areas).

Packet Pg. 431 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 29 Figure 18. Broadband service speed offered by PAETEC in Redding (December 2017).

U.S. TelePacific
U.S. Telepacific is a business broadband service provider and optical carrier that offers fiber-tothe-end-user and copper wireline connectivity. U.S. Telepacific primarily serves businesses in the central Redding with a few other pockets in northern and eastern Redding. U.S. Telepacific’s advertised speeds include those ranging from 1.5 Mbps-10 Mbps (brown and light-brown areas) to 10 Mbps-100 Mbps (green to light-green areas. Figure 19 shows business-class broadband service provided by U.S. Telepacific.

Packet Pg. 432 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 30 Figure 19. Broadband service speed offered by U.S. TelePacific in Redding (December 2017).

XO Communications
XO Communications is a business broadband service provider and optical carrier that offers fiberto-the-end-user and copper wireline connectivity. XO Communications primarily serves businesses in central Redding with advertised speeds of 1.5 Mbps-3 Mbps (light brown areas) and 100 Mbps-500 Mbps (blue areas). Figure 20 shows business-class broadband service provided by XO Communications.

Packet Pg. 433 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 31 Figure 20. Broadband service speed offered by XO Communications in Redding (December 2017).

4.1.3 Measured Broadband Service and Download Speed Availability The CalSPEED application is a professional-level broadband testing tool that allows conducting performance testing of both fixed and mobile broadband services. This application was developed at California State University, Monterey Bay and is used by the CPUC for measuring and validating broadband coverage from any broadband subscriber location. CalSPEED can be downloaded from www.calspeed.org.

The broadband testing results are displayed in the user device and then sent to a CPUC server for displaying on the California Broadband Interactive Map34. CalSPEED measures broadband performance parameters, such as downstream and upstream speeds, latency, and jitter (see detailed definitions in Section 10: Glossary). Results of CalSPEED can be used to validate broadband service availability in a specific geographic region and update the served or unserved (slow service or no service) status.

Figure 21 shows current CalSPEED results for fixed broadband services in the City of Redding. The current number of measurements (less than 20 points) does not allow to proper validation yet of broadband availability in the city. More measurement points would be required to assess levels of broadband availability for wireline and fixed wireless broadband providers.

34 California Public Utility Commission (CPUC). Broadband Interactive Map. http://www.broadbandmap.ca.gov/.

Packet Pg. 434 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 32 Figure 21. CalSPEED fixed test results for the City of Redding

4.2 Broadband Services Adoption
Residential broadband adoption is defined as the number of consumer broadband subscriptions divided by the total number of households within a defined geographic unit. Data about broadband subscriptions is confidential but the CPUC does publish a limited set of broadband adoption statistics by census tract. Figure 22 shows adoption rates in Redding.

Packet Pg. 435 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 33 Figure 22. Broadband adoption rates in the City of Redding Broadband adoption rates range from 60 to over 80 percent throughout most of Redding, with the highest adoption rates in the eastern edge of the city, as well as two areas in the west. Downtown Redding has the lowest broadband adoption rates in the city, with rates between 20 and 40 percent.

4.3 Middle-Mile Service Availability
This subsection presents middle-mile infrastructure available in the City of Redding area. The middle-mile segment provides high-speed and high-capacity transport and transmission of data communications from an aggregation point (i.e., central office, cable headend or wireless switching station) to an Internet point of presence (POP). For a detailed description on middle-mile broadband technologies see Appendix B: Middle-, Second- and Last-Mile Broadband Technologies. Figure 23 shows the middle-mile infrastructure (fiber-optic-based backbones) in or near Redding offered by AT&T, Frontier, and Charter. AT&T, Charter, and Frontier also offer last-mile broadband services to residential subscribers in California; however, in the City of Redding, only AT&T and Charter are both a fiber-opticbackbone carriers and residential ISPs; Frontier does not have a residential service in the city.

It is important to note that fiber-optic carriers usually do not provide or report information of their fiber-optic routes. The route information presented in this subsection was collected over the past few years from unofficial discussions with ISP’s personnel and local government staff with knowledge of Packet Pg. 436 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 34 fiber-optic deployments in the county. The Geographical Information Center (GIC) is currently working with ISPs and the CPUC to update and validate fiber-optic routes in rural Northern California.

Figure 23. Middle-mile infrastructure in the City of Redding area Packet Pg. 437 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 35 5. Broadband Infrastructure Upgrade Recommendations

5.1 Middle- and Last-Mile Network Upgrade Options

5.1.1 Fiber-to-the-Home (FTTH) Network Design
The Downtown Redding Internet Utility (Pilot) Whitepaper35 states that the City of Redding is considering a proposal to research, develop, and potentially implement a new fiber Internet utility service.

This initial service would be offered in the downtown area of Redding and serve as a pilot phase for both residential and commercial customers. The goal of the new utility is to spur economic development, help revitalize the downtown area, and make the city more competitive and marketable. This whitepaper highlights the uniquely advantage of Redding to provide this service by owning the existing infrastructure through the city-owned Redding Electric Utility (REU).

Based on the current broadband service coverage and maximum service speeds in the City of Redding, from 100 Mbps to less than 500 Mbps (Charter), this report supports that the next step for upgrading broadband service is deploying a fiber-optic network to provide gigabit services for residential, business, and industrial customers and community anchor institutions. This subsection presents a highlevel technical design assessment for the proposed fiber service in the Downtown Redding pilot area.

For the design of the fiber-optic network presented in this subsection, the analysis uses technical guidelines and recommendations from industry and academic papers,36,37,38 standard telecom industry infrastructure and deployment methods,39,40 and manufacturer equipment descriptions and configurations,41,42 among other sources. The main elements of the network are the following:
 Access Node (core site or central exchange): The access node houses all active fiber-optic transmission equipment, manages all fiber terminations, and facilitates the interconnection between the incoming optical fibers and active equipment. For equipment installation, it includes optical distribution frames, cable guiding system, uninterrupted power supply, climate control,

35 City of Redding Council (2017). Regular Meeting December 19, 2017, Agenda Packet (pp739-744). http://reddingcityca.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=2466&Inline=True. 36 Federal Communications Commission (FCC). (2010, April). The Broadband Availability Gap - OBI Technical Paper NO.1. Retrieved from https://transition.fcc.gov/national-broadband-plan/broadband-availability-gap-paper.pdf 37 Chatzi, S., Lazaro, J., Prat, J., & Tomkos, I. (2013). A Techno-Economic Study on the Outside Plant Cost of Current and Next-Generation Fiber-to-the-X Deployments. Fiber and Integrated Optics, 32(1), 12--27. doi:10.1080/01468030.2012.754070
38 Rokkas, T. (2015). Techno-economic analysis of PON architectures for FTTH deployments: Comparison between GPON,XGPON and NG-PON2 for a Greenfield operator. 2015 Conference of Telecommunication, Media and Internet Techno-Economics (CTTE). Munich: Germany.
39 Fibre to the Home Council Europe - Network Infrastructure Committee. (2007). FTTH Infrastructure Components and Deployment Methods. FTTH Council Europe.
40 Fibre to the Home Council Europe - D& O Committee. (2016). FTTH Handbook - Edition 7. Retrieved from Fibre to the Home Council Europe - Resources:
http://www.ftthcouncil.eu/documents/Publications/FTTH_Handbook_V7.pdf 41 Corning. Communication Networks. Retrieved from Corning :
http://www.corning.com/worldwide/en/products/communication-networks/products.html 42 Huber+Suhner. Fiber To The Home. Retrieved from Huber+Suhner Fiber To The Home:
http://fibertothehome.hubersuhner.com/en/
Packet Pg. 438 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 36 and access node security. In the case of in passive optical networks (PON), each access node can serve up to a maximum of 100,000 users.
 Primary Fiber Concentration Point (PFCP) (distribution site or local exchange): PFCPs are located closer to the subscribers and aggregate traffic from SFCP. They can be located in underground or pole-mounted cable-joint closures or street cabinets. In the case of PON, handholes or manholes may house splitters (passive elements) and branching boxes, and in the case of Ethernet, cabinets may house switches and active electronics (active elements).  Secondary Fiber Concentration Point (SFCP) (fiber distribution cabinets or outdoor cabinets):

Each cabinet serves a single service area with 600 to 1,000 passings per service area. SFCPs are optimal or strategic points that enable drop cabling to be split out as close as possible to subscribers. They can be located in underground or pole mounted cable joint closures, or small street pedestal structures. SFCPs house splitters and Y-branches that help to disjoin drop cables (in the case of PONs) or active electronics (in the case of Ethernet).  Fiber Optic Feeder Cabling: This cabling runs from access nodes to PFCPs and uses 10/40/100 Gbps core links (432 or 288 strands) over diverse paths (for PON or Ethernet) using underground or aerial deployment. For underground deployment, digging and laying conduit are required; for aerial deployment, pole make-ready is required.
 Fiber Optic Distribution Cabling: This cabling runs from PFCPs further into the network including redundant links, and consists of medium-sized fiber counts (48-192) using underground or aerial deployments. For underground deployment, digging and laying conduit are required; for aerial deployment, pole make-ready is required.
 Subscriber Tap: Fiber-optic housing located in the right-of-way near to the customer premises.

The subscriber tap can be installed on a pole or underground.  Drop Cabling: This cabling runs from taps to residences or buildings (maximum of 0.3 miles) and consist of 1 or 2 fiber cables using underground or aerial deployment. In the case of aerial deployment, drop cabling must withstand environmental conditions using armored cables.  Optical Network Unit (ONU): Active equipment installed on the premises of subscribers.

Figure 24 shows a Fiber-to-the-Home (FTTH) configuration diagram and a subset of the main network elements described above.

Figure 24. Main elements in a FTTH network infrastructure43

43 Fibre to the Home Council Europe - D& O Committee. (2016). FTTH Handbook - Edition 7. Retrieved from Fibre to the Home Council Europe - Resources:
http://www.ftthcouncil.eu/documents/Publications/FTTH_Handbook_V7.pdf Packet Pg. 439 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 37 For carrying out the fiber network design assessment, the City of Redding Public Works Department provided geographic information systems (GIS) data of the downtown pilot project area such as land use by category (i.e., residential, office, retail, industrial, public, etc.), building footprint, census blocks, roads, poles, electric overhead, hydrants, pipes, manholes, among others. A subset of these GIS data is shown in Figure 23.

Figure 23. GIS data layers of Redding Downtown including land use, roads, poles, electric overhead, among others.

Packet Pg. 440 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 38 Other important GIS data used for the technical analysis was REU electrical usage of customers44.

This approach was proposed by Steve Blum45 based on the assumption that electrical usage patterns are good rough indicators of broadband service potential. The same approach was implemented in Blum’s assessments for Healdsburg46 and Palo Alto47. Table 5 shows electrical consumption ranges and customer classes used for this technical assessment and Figure 25 shows location of customer classes in the downtown pilot area.

Estimated Annual
KWH Class Color Code
1,000,000+ A Red
500,000 - 999,999 B Orange
200,000 - 499,999 C Yellow
50,000 - 199,999 D Green
15,000 - 49,999 E Blue
-2,000 - 14,999 F Grey
Less than -2,000 G Black
Table 5. Electric customers by consumption class

44 These data did not include any information that identified customers or any other private customer information.

The data only included electrical usage patterns of residential and business locations. 45 Tellus Venture Associates – Management, planning and business development consulting for community broadband. https://www.tellusventure.com/
46 Blum, S. (2015). Healdsburg Fiber Optic Network Assessment, 20 January 2015. 47 Blum, S. (2011). Market Research Report - Citywide Ultra High-Speed Broadband System Project, City of Palo Alto, May 19, 2011. https://www.tellusventure.com/downloads/Palo-Alto-Fiber-Market-Research-Report19May11.pdf Packet Pg. 441 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 39 Figure 25. REU electrical usage patterns in Downtown Redding.

Figure 26 shows the design of a proposed fiber-optic network48 for the Downtown Redding pilot project area. The design includes only the backbone or feeder fiber route that passes through the entire project area. The design does not include lateral fiber lines or customer drops, as these lines will be deployed later on based on specific customer locations. The network and feeder fiber route design criteria include:
 The interconnection point is located in a middle-mile aggregation facility to the south of Redding  Optimized backbone or feeder fiber route to reach potential large business and industrial customers

48 The network design underwent a few iterations in order to optimize the route and maximize customers reach.

The design also incorporated a first round of feedback provided by the REU staff.

Packet Pg. 442 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 40  Feeder fiber route uses wooden poles as recommended by REU staff  Feeder fiber route follows electric primary overhead lines, and distribution fiber and drops (not included in the design and not shown in the diagram) will also follow secondary overhead lines  PFCP (cabinets) are located in shared facilities with REU’s substations  SFCP (aerial cabinets) are located near to potential high demand areas  Subscriber taps are located near to potential customers Figure 26. Fiber-optic network design for the City of Redding Packet Pg. 443 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 41 It is important to highlight that this is a high-level fiber network design assessment and not a fully detailed technical fiber network design. Table 6 shows a summary of the main fiber-optic network elements for providing service to the Downtown Redding pilot area.

Table 6. Summary of main network elements for the FTTH network for the City of Redding Item Units Total
Access Node Units 1
Primary Fiber Concentration Point (PFCP) Units 2
Secondary Fiber Concentration Point (SFCP) Units 4
Subscriber Taps (Cable Splice Closure/Handholes) Units 57 Fiber Aerial Deployment Miles 4.41
Fiber Underground Deployment Miles 0.55
The following subsection presents a high level cost assessment to estimate the cost of this FTTH/FTTB network.

5.1.2 High-Level Fiber-Optic Network Cost Assessment
The high-level cost assessment for the fiber-optic network in the Downtown Redding Pilot Project Area is based on a combination of cost data input from the National Telecommunications and Information Administration (NTIA)-Broadband USA, publicly available fiber network deployment reports, and communications with experts in the matter49. Table 7 shows the estimated and selected cost ranges and average costs of the main fiber network elements.

Table 7. Estimated unit costs (ranges and averages) for the main fiber-optic network elements for the Downtown Redding Pilot Project
Item Description
Estimated
Low Cost
(USD)
Estimated
Average
Cost (USD)
Estimated
High Cost
(USD)
Access Node (POP) $958,775 $1,095,713 $1,232,650
Primary Fiber Concentration Point (PFCP) $650,000 $675,000 $700,000 Secondary Fiber Concentration Point (SFCP) $50,000 $75,000 $100,000 Subscriber Taps (Cable Splice Closure/Handholes) $100 $250 $400 Aerial Fiber Deployment $21,614 $44,037 $66,460
Underground Fiber Deployment $98,760 $245,380 $392,000

49 These costs are based on the following sources:
 CTC technology & energy (2015), Cost Estimates for FTTP Network Construction – Prepared for City of Santa Cruz, California, May 2015
 BroadbandUSA-NTIA (2017), Cost at-a-Glance: Fiber and Wireless Networks, May 2017  National Telecommunications and Information Administration (NTIA) (2009-2015), Broadband Technology Opportunity Program (BTOP) – Projects Cost Summary, 2009-2015  City of Chico Public Works Department, Underground Conduit Installation Cost Data  Redding Electric Utility (REU), Cost Estimates to Install Fiber in Poles  Steve Blum (2017), Recommendations for fiber cost estimation ranges for the CTC 2015 Report Packet Pg. 444 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 42 Table 8 and Figure 27 show the estimated total deployment cost for the fiber-optic network in the Downtown Redding Pilot Project Area. The initial total cost estimate ranges from $2.6Million to $3.5M, and an average of $3Million.

Table 8. Estimated total deployment costs
Item Description – Initial Scenario Quantity Total
Low Cost
Average
Total Cost
Total
High Cost
Access Node (POP) 1 $958,775 $1,095,713 $1,232,650
Primary Fiber Concentration Point (PFCP) 2 $1,300,000 $1,350,000 $1,400,000 Secondary Fiber Concentration Point (SFCP) 4 $200,000 $300,000 $400,000 Subscriber Taps 57 $5,700 $14,250 $22,800
Aerial Fiber Deployment 4.41 $95,317.74 $194,203.17 $293,088.60 Underground Fiber Deployment 0.55 $54,318 $134,959 $215,600 Total Costs $2,614,111 $3,089,125 $3,564,139
Figure 27. Estimated total fiber network cost for the Downtown Redding project area Figure 28 shows network element cost percentages of the average total deployment costs which help to identify the main cost drivers. The main cost driver is the PFCP, 44%, followed by the access node, 36%. The least cost driver is the subscriber taps.

Packet Pg. 445 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 43 Figure 28. Main network element cost drivers for the fiber network in Downtown Redding Network Design and Cost Optimization
After identifying the main cost drivers, the network design was optimized. The initial design included network elements (PFCP and SFCP) which could handle future growth of the network to a citywide scale. However, this potential network expansion may come after a few years, therefore, from a financial stand point, it would be better to optimize (reduce) the initial upfront cost to only necessary equipment to serve the pilot project areas. Furthermore, new generation of fiber network equipment and electronics comes after few years, then it makes sense to purchase latest equipment with enhanced capacity when the time for network expansion comes. The design of the network was optimized to network elements and total costs shown in Table 9 and Figure 29. The optimized network cost ranges from $1.9Million to $2.7Million, and an average of $2.3Million.

Table 9. Estimated optimized total deployment costs
Item Description – Optimized Scenario Quantity Total
Low Cost
Average
Total Cost
Total
High Cost
Access Node (POP) 1 $958,775 $1,095,713 $1,232,650
Primary Fiber Concentration Point (PFCP) 1 $650,000 $675,000 $700,000 Secondary Fiber Concentration Point (SFCP) 3 $150,000 $225,000 $300,000 Subscriber Taps 57 $5,700 $14,250 $22,800
Aerial Fiber Deployment 4.41 $95,317.74 $194,203.17 $293,088.60 Underground Fiber Deployment 0.55 $54,318 $134,959 $215,600 Total Costs $1,914,111 $2,339,125 $2,764,139
Packet Pg. 446 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 44 Figure 29. Estimated total fiber network cost for the Downtown Redding project area Further Network Design and Cost Optimization
Further cost optimization can be achieved by identifying the main cost drivers and then optimizing the costs finding synergies with the city and REU infrastructure and operations. Figure 30 shows the main cost drivers of the optimized fiber network. The main cost driver is the access node, 47%, followed by the PFCP, 29%. Table 10 shows the estimated costs of the access node elements. If there is a REU or cityowned facility with appropriate infrastructure that can house the access node elements, then that would mean around $333,000 cost reduction in the access node cost. It is recommended further discussions among the potential project stakeholders in order to discuss synergies that could lead to more cost optimization. Cost optimization can come also from working together with the city public works department for underground fiber deployment in certain segments of the fiber network route.

Packet Pg. 447 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 45 Figure 30. Main network element cost drivers for the optimized fiber network Table 10. Estimated cost of access node elements
Access Node (POP) Low
Cost
Average
Cost
High
Cost
Communication Huts $326,000 $334,000 $342,000
Generators $70,000 $126,000 $182,000
Network Router $15,000 $20,000 $25,000
Network Switch $2,500 $5,000 $7,500
Patch Panel $100 $300 $500
Transponder Card $5,000 $7,500 $10,000
Network Transceiver $100 $300 $500
Mounting Hardware, Cables, Battery & Cabinet $300,000 $315,000 $330,000 Circuit Breaker Kit $75 $113 $150
Battery and Rectifier System $20,000 $27,500 $35,000
Network Node $220,000 $260,000 $300,000
$958,775 $1,095,713 $1,232,650
Packet Pg. 448 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 46 6. Policy Recommendations to Support Broadband Expansion

6.1 Policy Issues and Considerations

6.1.1 Assess and Implement Smart City Capabilities
Cities may increase operational efficiency by incrementally adopting cutting-edge broadbandbased municipal services such as smart parking meters, smart traffic systems, digital information kiosks, smart energy-efficient lights, smart security and monitoring systems, among other services. Smart city services will allow Redding to provide services optimizing human resources and offering more detailed data on the provision and use of these automated services. The city may assess the feasibility (including both technical and financial aspects) of implementing and adopting smart city services and establishing partnerships with Internet service providers and technology companies to launch pilot projects in the city.

6.1.2 Ease for Broadband Infrastructure Deployments
Local governments should promote and support expansion of high-capacity middle-mile (fiberoptic backbone) and high-speed last-mile (wireline and wireless) networks to reach residential, business and industrial broadband customers in both urban and rural areas. The city can reach out to public utilities and/or ISPs to provide ubiquitous reliable and high-speed broadband Internet access. For that purpose, permit and authorization processes should provide detailed guidance and timely responses for requests of broadband infrastructure deployments and installation of telecommunications equipment.

Additionally, the city can implement policies aimed to reduce barriers and streamline the permit process for broadband infrastructure deployments and facility upgrades. It is also important to find a balance between proper land use designations, based on the sustainable element of the general plan, and growing needs of broadband services in the city.

6.1.3 Priority Areas for Broadband Infrastructure Deployments The city may identify priority areas for broadband deployments based on local needs (i.e., for residential, business and industrial services) and/or least attention from ISPs. The city can work together with public entities, non-government organizations, and business associations, among other interested parties, to identify priority areas and develop strategies for addressing broadband needs. In the case of residential broadband services, needs may include broadband services to enable work-related applications for telecommuting and telehealth applications, to high-quality entertainment applications and Internet-of-things applications. In the case of business and industrial broadband services, high-speed and high-quality services are paramount for local businesses to thrive in the growing digital economy; as they allow incorporating broadband Internet-based services and applications into daily processes. These may include services that provide access to a variety of competitive suppliers regardless of geographical location, automated logistics and coordination systems across companies’ production and distribution processes, advertising to nationwide and global markets, and providing direct communication from company to customers, and vice versa, among other areas. The identified priority areas and needs should include future growth over the next decade.

Packet Pg. 449 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 47 6.1.4 Partnerships for Broadband Infrastructure Projects The City of Redding should encourage the Redding Electric Utility to explore the option to provide fiber internet service and ISPs to expand broadband infrastructure and services to address the identified priority areas and needs. The city may develop a comprehensive data set of available broadband-related city-owned assets (called a broadband asset inventory), and make this information available to the public through an online map viewer. The city may lease some of these assets to support expansion of broadband services. The city may also evaluate options for establishing partnerships with the REU and ISPs for the deployment of municipal smart city services and, at the same time, support the deployment of infrastructure to provide cutting-edge residential, business and industrial broadband services. The city may also support deployment of the last-mile element (to reach final customers) using high-speed broadband technologies which may include but are not limited to fiber optics, cable, fixed wireless, 4G and 5G (small cells) mobile wireless, millimeter-wave and television white spaces (TVWS), among others, using terrestrial facilities or unmanned aerial system (UAS) platforms. New deployments should also accommodate future expansion of infrastructure based on growing broadband customer and speed demands, changes in technology and future utility providers. Partnerships may also be established with other public utilities and state organizations (i.e., Caltrans) to find efficiencies and synergies when deploying infrastructure in public rights-of-way (PROW).

6.1.5 Promote Broadband Services Adoption to Foster Economic Development The City of Redding may promote and support partnerships between ISPs and public and private entities for broadband infrastructure deployments and broadband adoption programs in fields including, but not limited to, education, health care, agriculture, manufacturing, economic and workforce development, tribal communities, and emergency services. Adoption programs may include digital literacy training, broadband services implementation as a tool for strategic and everyday work processes, implementation of online service capabilities accessible to all residents, and training of a new digital workforce.

6.2 Policies for Promoting and Improving Telecommunications Infrastructure This subsection presents a summary of recommended policies that may guide use of resources and promote expansion of modern broadband Internet services. The policies established herein may guide incorporating smart city capabilities in Redding and defining strategies for achieving modern policies and efficient permit processes for promoting expansion and upgrading of broadband infrastructure and services in accordance with the city's sustainability and land use policies and regulations, among others.

These policies also promote cooperation between the city's public works, public utilities and ISP's broadband infrastructure projects to find synergies and achieve efficiencies. These policies are based on best practices from cities and counties in California (i.e., City of Morgan Hill50 and County of Santa Cruz51).

50 Tellus Venture Associates, Blum, S., City of Morgan Hill 2035 General Plan – Telecommunications Infrastructure Final Report. 12 September 2016.
http://www.tellusventure.com/downloads/morgan_hill/morgan_hill_telecommunications_infrastructure_final_re port_12sep2016.pdf
51 California Broadband Council. (2014, January 15). California Broadband Council-Overcome local barriers to deployment and adoption. Retrieved from County of Santa Cruz-Recommended Actions to Expand Broadband:
http://broadbandcouncil.ca.gov/uploadedFiles/Content/News/Santa%20Cruz%20County%20Broadband%20Updat e.1-28-2014.pdf
Packet Pg. 450 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 48 Additionally, some of these recommendations are based on policies and ordinances of other counties and cities such as the City of San Jose and County and City of San Francisco.

6.2.1 Dig-Once Policy
Depending on the approach taken regarding dig-once policies, they can help local governments and utility companies to work together to identify project synergies and to optimize resources for installation of conduit as part of county or city projects. A white paper by the Columbia Telecommunications Corporation (CTC) summarizes the following general approaches for dig-once policies52:
 Requiring an excavator who applies for a permit in the public right-of-way to notify utilities and other relevant entities (e.g., telecom companies and ISPs) about the excavation project and coordinate their participation.
 Requiring an excavator to install empty conduit for future use (also called "shadow conduit" installation policy). Depending on the policy, the excavator or the jurisdiction may then lease that excess conduit capacity.
 Undertaking a longer-term process, coordinating multi-year plans with excavators.

During meetings with local government officials in the northern California region, a common point of discussion was deciding when laying conduit was technically and financially feasible without interfering with timelines and operations on the main excavation project. Addressing this topic requires evaluating several factors and conducting a feasibility analysis covering the following points:
 Technical feasibility, maximizing available resources and reaching high-priority areas;  Developing a technical specification for the dig-once conduit; and  Developing an engineering cost model to estimate the incremental costs of the dig-once conduit.

6.2.2 Develop Conduit Specifications
Conduit specifications allow local governments, utility companies and ISPs to estimate costs of adding conduit in an excavation project in public rights-of-way, and carry out efficient planning and deployment of fiber optics on standard conduit deployments. These specifications can be developed and implemented in Redding and would achieve even higher efficiencies if adopted in a county or across an entire region. Conduit specifications include requirements and recommendations such as size, type and material of the conduit, conduit installation and placement in the trench parameters, depth and distance from utility infrastructure, vault installation parameters, and minimum distance between vaults or manholes, among other items. These specifications must be reviewed by public works departments to assess feasibility and practicality of such installations in a specific geographic area.

6.2.3 Master Lease Agreement
The purpose of this lease agreement is to reduce processing time and complexity for leasing a local government’s broadband-related assets. A lease agreement allows for the installation, operation and maintenance of ISPs’ telecommunications equipment on city-owned assets. To maximize effectiveness of

52 Columbia Telecommunications Corporation. (2017, April). ctc technology & energy. Retrieved from Technical Guide to Dig Once Policies: http://www.ctcnet.us/wp-content/uploads/2017/04/CTC-White-Paper-Dig-Once20170414.pdf Packet Pg. 451 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 49 using a master lease agreement, the local government needs an up-to-date inventory of assets, which may include land, public rights-of-way, conduit, buildings, utility poles, light standards, towers, and any other property. This inventory must be publicly available for ISPs to review so they can assess the assets that they might want to lease, based on their broadband deployment planning. The agreement must include fee structures, agreement duration, renewal terms, access and responsibilities of the parties, and co-location rights, among other legal requirements.

6.2.4 Streamline Application Process and Permit Fees
Streamlining the processes involved in deploying broadband infrastructure allows for faster expansion of broadband infrastructure and services in the city. Additionally, charging at-cost permit fees might contribute to a competitive broadband service pricing in the region. In the context of rural northern California, with itslower population densities, geographically spread households and, in some cases, harsh geography, broadband deployment and operation are more expensive than in urban areas of California.

Thisresults in higher broadband prices and lower speed offers. Some ISPs in the Northern California region identified county or city asset leases and permit expenditures as significant operating expense drivers.

Some options to address these issues include charging discretionary planning permits at cost, or removing requirements for broadband infrastructure within the public right-of-way to obtain a discretionary land use permit. Other identified issues to address include land use regulations and land use permits for certain broadband facilities (i.e. cabinets, racks, wireless facilities) within the public right-of-way.

6.3 Sample Telecommunications Element for the City of Redding General Plan

GOALS, POLICIES, AND ACTIONS
Goal T-1: Promote implementation of municipal smart city capabilities and broadband-based services to increase operational efficiency
Goal T-2: Promote efficient expansion of broadband infrastructure to provide high-speed broadband Internet service
 Goal T-1: Promote Implementation of Municipal Smart City Capabilities and Broadband-Based Services to Increase Operational Efficiency
o Policy T-1.1 (Promote Deployment of Municipal Smart City Services) – Promote deployment of broadband infrastructure and services to provide broadband-based municipal smart city services.
 Action T-1.1.1 – Assess potential priority areas for providing smart city services (i.e., parking meters, traffic systems, information digital kiosks, lights, security and monitoring systems).
 Action T-1.1.2 – Promote including broadband facilities in all public buildings, major transportation and all public works projects.
o Policy T-1.2 (Develop Standards) – Develop standards for preparing future construction and developments for broadband facilities and services.  Action T-1.2.1 – Develop broadband building and wiring standards to support broadband in new construction and buildings.
 Action T-1.2.2 – Develop smart building requirements for new public, commercial, residential and industrial projects.

Packet Pg. 452 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 50 o Policy T-1.3 (Assess Establishing Partnerships for Carrying Out Pilots) – Assess potential partnerships with ISPs and technology companies for carrying out smart city pilots in municipal priority areas.
 Action T-1.3.1 – Conduct a request for information (RFI) process on smart city projects addressed to ISPs and technology companies.
 Action T-1.3.2 – Conduct a feasibility study to carry out smart city pilot projects including potential partners, project cost, business models, among others. o Policy T-1.4 (Online Municipal Services) – Promote and make all municipal services available online.
 Action T-1.4.1 – Enable all municipal services in the City of Redding portal.  Goal T-2: Promote Efficient Expansion of Broadband Infrastructure to Provide High-Speed Broadband Internet Service
o Policy T-2.1 (Develop a Strategic Broadband Plan) – Develop a strategic plan for supporting expansion of high-speed broadband infrastructure and services for residential, anchor institutions, business and industrial customers.  Action T-2.1.1 – Work with public entities, non-government organizations, and business associations, among other interested parties, to asses priority areas and needs of residential, business and industrial customers and community anchor institutions (education, public services, public safety, and health care).  Action T-2.1.2 – Based on the priority areas and needs assessment, develop a master plan to address them including objectives, strategies, partners, resources, and timelines, among other important planning elements. o Policy T-2.2 (Dig-Once Policy) – Promote collaboration among public works departments, utility companies and Internet service providers to find project planning synergies to optimize resources for installation of conduit and/or fiber optics as part of city projects.  Action T-2.2.1 – Develop and implement a local dig-once ordinance by assessing the potential role of the city and different dig-once policy approaches (i.e., open trench, shadow conduit, excess capacity utilization, etc.).  Action T-2.2.2 – Develop standards for deploying conduit and lateral connections.

This will allow for cost estimations of the addition of conduit in an excavation project in public rights-of-way, and efficient planning and deployment of fiber on standard conduit deployments.
o Policy T-2.3 (Access to Public Assets and Develop a Master Lease) – Assess feasibility of allowing ISPs to lease public assets (pubic rights-of-way, land, buildings, ducts, conduit, poles, towers, etc.) for deployment, upgrade or expansion of broadband networks.  Action T-2.3.1 – Develop an up-to-date inventory of broadband related cityowned assets and community anchor institutions which might include land, public rights-of-way, conduit, buildings, utility poles, light standards, towers, and any other property.
 Action T-2.3.2 – Make the asset inventory available in geographic information system (GIS) format and make it publicly available through an online map viewer and data tables.
 Action T-2.3.3 – Develop and implement a master lease aimed to reduce processing time and complexity for leasing the city’s broadband-related assets.

The agreement must include standard terms such as fee structures, agreement duration, renewal terms, access and responsibilities of the parties, and colocation rights, among other legal requirements.

Packet Pg. 453 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 51  Action T-2.3.4 – Develop specific procedures for granting access and/or leasing assets in a fair and transparent manner to all interested ISPs. o Policy T-2.4 (Streamline Permit and Authorization Processes) – Ensure transparent and fair permit and authorization processes for all ISPs. Streamline the process of deploying broadband infrastructure to allow faster and timely expansion of broadband infrastructure and services in the city.
 Action T-2.4.1 – Review and assess current municipal permit and authorization application processes for deployment of broadband infrastructure, including requirements, steps, timelines, and costs associated with the applications.  Action T-2.4.2 – Update permit and authorization processes when, based on the assessment, efficiencies and faster processes can be achieved.  Action T-2.4.3 – Require digital plan files in GIS format for all upcoming works in PROWs and new developments (i.e., utilities, developers, contractors and others).
o Policy T-2.5 (Assess Partnerships and Business Models for Infrastructure Deployments) – Assess establishing active partnerships with ISPs and other technology companies for deploying and providing broadband services.
 Action T-2.5.1 – Assess the potential role of the city as a partner to provide or expand broadband services.
 Action T-2.5.2 – Assess potential business models for providing broadband services to priority areas under a public-private-partnership model.  Action T-2.5.3 – Assess potential private partners for carrying out broadband infrastructure deployments. Issue requests for proposals (RFPs) for private partners and explore negotiating, for example, the use of public assets or permit fees for shadow conduit deployments (outer or inner ducts).  Action T-2.5.4 – Explore partnerships with state agencies (i.e., Caltrans) to achieve interagency coordination.
o Policy T-2.6 (Develop a Database of Upcoming Public Infrastructure Projects) – Generate a database of upcoming public infrastructure projects (i.e., water, sewer, roads, paving, etc.) in public rights-of-way, including location, routes and estimated timelines.  Action T-2.6.1 – Identify and track upcoming public infrastructure projects and generate a database.
 Action T-2.5.2 – Make the upcoming public infrastructure project database available in geographic information system (GIS) format and through an online map viewer.
o Policy T-2.7 (Promote Validation of Broadband Service Availability and Speed) – Promote crowd validation of broadband service availability and speed for residential, anchor institutions, business and industrial broadband services.  Action T-1.3.1 – Promote downloading and using the CalSpeed (or similar statesponsored applications) for validating broadband service coverage and speed for broadband services in the city.

Packet Pg. 454 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 52 7. Recommendations to Improve Broadband Service Adoption While broadband access is critical, adoption of broadband services is equally as important. Many community residents in the City of Redding need assistance finding low-cost Internet service, obtaining a computer and learning pertinent skills to navigate the online world successfully. Efforts to meet these needs will help the region to combat the inequitable distribution of broadband to rural areas, referred to as the “digital divide.” The digital divide is often more broadly defined as the discrepancy between the availability of technology among socioeconomic or racial/ethnic groups. The divide limits rural residents’ access to education, workforce training, healthcare and civic engagement.

Providing equipment and training opportunities will allow users to effectively understand and learn how broadband can improve their ability to conduct business, excel in school, manage their finances, participate in telehealth, apply for jobs, receive vocational training and function effectively in a digital world. These skills are critical to educational and career success and are accessible to more advantaged families but can be out of reach for disadvantaged communities due to socioeconomic challenges (e.g., educational background, time impacts of multiple jobs and long commutes).

Communities and organizations seeking to connect users with equipment and access to curriculums should establish partnerships with existing organizations and programs to establish credibility and identify best practices for outreach, implementation, follow-through and success. The following are suggested partners:
• Affordable housing communities
• Community action agencies
• Center for Healthy Communities at CSU, Chico
• Youth development agencies
• Workforce and one-stop job training agencies
• Multi-service agencies
• Rotary Club and other service organizations by community • Senior citizen and veteran’s resource and service centers • Butte-Tehama Community College
• Local libraries
• K-12 schools
Broadband also transforms the way small businesses operate, communicate with employees, and interact with customers. Broadband is an important tool for achieving strategic goals, improving competitiveness and efficiency, reaching customers, and interacting with vendors. Businesses use broadband connections to improve efficiency and productivity, both in their internal processes and their interactions with customers. The capability of and opportunities provide by broadband can translate into profits and producer surplus to businesses with a portion of the gains being passed to consumers.

Many businesses throughout the region do not have access to the speeds necessary to conduct day-to-day business. Because of this limited capacity, many smaller businesses are unaware of the growth potential that is attainable if they had better broadband. Economic development organizations, workforce agencies and chambers of commerce are examples of groups that can provide training and information to business owners to increase adoption and plan for growth and sustainability.

Packet Pg. 455 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 53 8. Conclusion
This Master Broadband Plan for the City of Redding aimed to provide the following:
 A comprehensive assessment of the current landscape of fixed broadband services for residential, business and industrial customers
 Recommendations for expanding and upgrading broadband infrastructure and services  Recommendations for developing and implementing local government policies to support broadband infrastructure deployments
 Recommendations for improving broadband adoption through establishing partnerships with existing organizations and programs.

The recommendations for expanding broadband infrastructure and upgrading services focus on the Redding Electric Utility (REU) deploying a high-capacity and high-speed fiber optic network. This report presents a high level cost assessment of a fiber optic network in the Redding Downtown Pilot Project Area.

The high level cost assessment for the downtown network design, after the design and cost optimization, provided a total cost range from $1.9M to $2.7M and an average of $2.3M. The cost assessment also describes further cost optimization (reduction) that can be achieved by assessing additional existing infrastructure that can be used in this fiber network deployment. It’s recommended to have further discussions with the REU and Redding Public Works staff, among other potential project stakeholders.

The recommendations for developing and implementing local policies focus on reducing barriers for new broadband infrastructure deployments and streamlining permit and authorization process in public rights-of-way. The policies included a dig-once policy, the development of conduit specifications, a master lease agreement, and the streamlining of the application process and permit fees. Other recommended policies include incorporating smart city capabilities in the City of Redding. Finally, a sample of a General Plan-Telecommunications Element is also presented as a reference.

The recommendations for improving broadband adoption included establishing partnerships with existing organizations and programs to establish credibility and identify best practices for outreach, implementation, follow-through and success. Additionally, economic development organizations, workforce agencies and chambers of commerce were examples of groups that can provide training and information to business owners to increase adoption and to plan for growth and sustainability.

Finally, this study also recommended launching a CalSPEED campaign for residential and business customers to download and use this application to validate actual broadband service coverage and speeds provided by ISPs.

Packet Pg. 456 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 54 9. Appendices

9.1 Appendix A - Broadband Service Benchmarks

9.1.1 Downstream/Upstream Broadband Speeds (Mbps)
The FCC defines broadband (advanced telecommunications capability) primarily in terms of downstream and upstream speeds as 25 Mbps and 3 Mbps53, respectively. The CPUC also uses speed as a metric to evaluate broadband service coverage, defining underserved areas to areas were broadband is offered at slower speeds than 6 Mbps downstream and 1 Mbps upstream54.

9.1.1 Supplemental Benchmark Metrics
The FCC currently does not adopt non-speed performance metrics in their broadband progress reports (although it recognizes the importance of low latency and high consistency to provide advanced telecomm capability) due to currently lacking comprehensive data on factors other than speed. The following are supplemental broadband benchmarks, described in the FCC's 2016 Broadband Progress Report, which in the future will help evaluating quality-of-service in a more comprehensive manner.

Latency (ms)
Latency is defined as a measurement of the time it takes a data packet to travel through the network. It significantly impacts the performance of interactive, real-time applications, including VoIP, online gaming, videoconferencing, and VPN platforms.

Consistency
Consistency has the potential to significantly impact whether a service delivers broadband to provide consumers with meaningful access to interactive advanced services including VoIP, telemedicine, and online education applications using high-quality voice, data, graphics, and video telecommunications.

Packet Loss
The Measuring Broadband America program denotes a packet is lost if the latency exceeds 3 seconds or if the packet is never received. Packet losses might affect the perceived quality of phone calls or video conferencing.

53 Federal Communications Commission (FCC). (2016, January). 2016 Broadband Progress Report. Retrieved June 2017, from https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-6A1.pdf 54 California Public Utility Commission (CPUC). (2012, May). Forth Annual DIVCA Report. Retrieved June 2017, from http://www.cpuc.ca.gov/uploadedFiles/CPUC_Public_Website/Content/Utilities_and_Industries/Communications _-
_Telecommunications_and_Broadband/Service_Provider_Information/Video_Franchising/4thDIVCAReportforYear EndingDec2010.pdf
Packet Pg. 457 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 55 9.2 Appendix B: Middle-, Second- and Last-Mile Broadband Technologies This subsection describes current and new broadband technologies used by ISPs for middle-, second- and last-mile broadband networks. For this report, the definitions of middle-, second- and lastmile network segments follow the basic network structure from the FCC's Broadband Availability Gap Paper55, shown in Figure 31. Based on an initial assessment of last-mile broadband networks and providers in the City of Redding and regional Internet fiber-optic backbones and providers, it is assumed that most broadband networks in the City of Redding consists only of middle- and last-mile network segments; therefore not including the second-mile network segment. The second-mile segment is mostly used in the case of fixed wireless broadband services, which aggregate traffic from several towers deployed in cascade configuration and sparsely located.

The middle-mile segment provides transport and transmission of data communications from an aggregation point (i.e., central office, cable headend or wireless switching station) to an Internet point of presence. Last-mile segment provides transport and transmission of data communications from a broadband modem provided by a local ISP to the first aggregation point in the network (i.e., remote terminal, wireless tower, or HFC node).

Figure 31. Basic network structure from FCC's The Broadband Availability Gap Paper Commonly deployed middle-mile transport technologies include fiber optics, microwaves and satellite links. In 2010, the majority of central offices (approximately 95%) and nearly all cable nodes connected to the Internet through fiber-optic links. Once the transport requirement reaches 155 Mbps

55 Federal Communications Commission (FCC). (2010, April). The Broadband Availability Gap - OBI Technical Paper NO.1. Retrieved from https://transition.fcc.gov/national-broadband-plan/broadband-availability-gap-paper.pdf Packet Pg. 458 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 56 and above, the only effective transport mode is using a fiber-optic-based transmission backbone.

Microwave and other terrestrial wireless technologies are well suited only when aggregated data is of a few hundred Mbps and relatively short middle-mile runs of 5 to 25 miles. However, microwave backhaul may be a critical transport component in the second-mile segment in the case of fixed wireless networks.

The following subsections describe most current technologies used for last-mile networks including wireline, wireless, and mobile technologies. It also describes new and innovative technologies, including some that are still in testing stage and are not commercially available yet.

9.2.1 Wireline Broadband
Wireline broadband includes digital subscriber line (DSL), cable modem and fiber-to-the-home.

These technologies are primarily deployed in dense urban areas. Deployment and coverage limitations of these technologies include access to right-of-way and high costs of rolling underground lines.

Digital Subscriber Line (DSL)
DSL is defined as broadband service provided over traditional copper telephone lines (without disrupting regular telephone calls) already installed to homes and businesses. According to the FCC's 2016 Broadband Progress Report56, this technology is the second most common service type with roughly 29% of the fixed broadband market. DSL offers the following speeds57:
a) DSL over loops of 12,000 feet: Uses ADSL2/ADSL2+ to provide rates of 6 Mbps downstream and 1 Mbps upstream. To provide faster speeds, DSL operators can bond loops (over 30 Mbps if sufficient number of copper loops are available) and continue to shorten loop lengths (see loops of 5,000 feet or 3,000 feet).
b) DSL over loops of 5,000 or 3,000 feet: Typically uses VDSL2 to provide 35 Mbps downstream and 6 Mbps upstream over 3,000 foot loops, and 20 Mbps downstream and 4 Mbps upstream over 5,000 foot loops.

Limitations of this technology include speed sensitivity to distance to central offices, not expanding of traditional telephone lines so the DSL footprint is not growing, and not providing higher date rates for growing speed demands of 50Mbps, 100Mbps and higher.

Cable Modem
Uses coaxial cables already installed by cable television operators to deliver video and sound.

Cable modem can provide at least 1.5 Mbps and up to tens of Mbps and a few Gbps (cable networks upgraded to DOCSIS 3.1) downstream58, and a few Mbps to 1 Gbps upstream. This technology provides the most common fixed broadband service in the United States accounting for around 59% of all fixed broadband customers. Benefits of this technology include large coverage areas for consistent fast speeds with low packet loss and latency. Limitations include low numbers of or single cable broadband providers in most areas.

56 Federal Communications Commission (FCC). (2016, January). 2016 Broadband Progress Report. Retrieved June 2017, from https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-6A1.pdf 57 Federal Communications Commission (FCC). (2010, April). The Broadband Availability Gap - OBI Technical Paper NO.1. Retrieved from https://transition.fcc.gov/national-broadband-plan/broadband-availability-gap-paper.pdf 58 Federal Communications Commission (FCC). (2010). National Broadband Plan. Retrieved from FCC-National Broadband Plan: https://www.fcc.gov/general/national-broadband-plan Packet Pg. 459 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 57 Fiber Optics
Fiber-optic technology converts electrical signals carrying data to light and sends the light through transparent glass fibers of a few microns. Fiber-based service can provide downstream speeds of around 20 Mbps to speeds around a few Gbps and upstream speed of around 5 Mbps to a few hundred Mbps.

There are three basic types of FTTP deployments: point-to-point (P2P) networks, active Ethernet networks and passive optical networks (PON). PON makes up more than 94% of the residential FTTP (fiber-to-thepremises) deployments in the United States59 . Benefits of fiber include proving consistently high speeds and transmitting at large distances without signal degradation. Limitations include requirement of new infrastructure, in comparison to DSL and cable modem using already deployed telephone and cable television infrastructure.

9.2.2 Fixed Wireless Broadband
Fixed wireless broadband includes Wi-Fi, WiMAX and LTE. These technologies are primarily deployed in areas were wireline technologies do not have complete coverage such as rural areas.

Deployment and coverage limitations of these technologies come from obstructions (i.e. terrain and/or vegetation) between the antenna at the customer premises and the access point or base station located at a pole or tower. These obstructions can prevent or disrupt communications in fixed wireless radio links by causing attenuation, scattering, diffraction and absorption of electromagnetic waves.

Wi-Fi
Wi-Fi (IEEE 802.11 Standard) operates in unlicensed bands (2.4 GHz and 5.8 GHz) and was originally designed for wireless local area networks (WLANs) to enable communication among devices and stations in a range from tens to a few hundred feet, however, in the last few years, equipment manufactures developed Wi-Fi based long range solutions reaching several miles coverage. Wi-Fi can provide aggregated data rates of up to 600 Mbps60 allowing it to provide downstream speeds of a few Mbps to tens of Mbps. Benefits of Wi-Fi include low cost of access points (APs) and customer premise equipment (CPEs) due to large economies of scale achieved by this technology. Limitations include potential interference leading to signal degradation due to operating in a widely used unlicensed spectrum.

WiMAX
WiMAX (IEEE 802.16 Standard) emerged as a high-capacity and long-range technology (up to 30 miles) for the provision of fixed and mobile broadband services for wireless metropolitan area networks (WMAN) and operates using licensed and the unlicensed bands. WiMAX was one of the technologies chosen by the ITU for providing IMT-Advanced services or 4G mobile services61. It achieves aggregated data rates up to 350 Mbps allowing it to provide speeds up to tens of Mbps downstream to customers.

Limitations include low varieties of base stations (BSs) and CPEs due to most mobile operators and

59 Federal Communications Commission (FCC). (2010, April). The Broadband Availability Gap - OBI Technical Paper NO.1. Retrieved from https://transition.fcc.gov/national-broadband-plan/broadband-availability-gap-paper.pdf 60 Institute of Electrical and Electronics Engineers (IEEE). (n.d.). IEEE Standards Association. (IEEE) Retrieved from http://standards.ieee.org/
61 Institute of Electrical and Electronic Engineers (IEEE). (n.d.). IEEE 802.16™: Broadband Wireless Metropolitan Area Networks (MANs). (IEEE Standards Association) Retrieved from http://standards.ieee.org/about/get/802/802.16.html
Packet Pg. 460 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 58 equipment manufactures shifting to LTE due to larger worldwide adoption of this technology for 4G mobile services.

LTE
Long-Term Evolution (LTE) was designed by the 3rd Generation Partnership Project (3GPP) group for mobile communications in densely populated areas (see mobile broadband). LTE has also been used to provide fixed broadband services in rural areas. LTE can achieve aggregated data rates up to 300 Mbps allowing it to provide speeds up to tens of Mbps downstream to customers. For benefits and limitations see LTE in the Mobile subsection.

9.2.3 Mobile Broadband
Mobile broadband includes packet-based data technologies such as 2G (GPRS, EDGE and CDMA2000), 3G (WCDMA, HSDPA, HSPA and CDMA2000 EV-DO), and 4G (LTE and WiMAX). Although evolution of these technologies has made mobile broadband services much more versatile and useful to consumers by providing mobility and portability, there are important differences between mobile and fixed broadband. Mobile transmissions, due to using wireless spectrum, operate under environmental factors that can impact the consistency of coverage and speeds. These technologies are primarily deployed in densely populated urban areas and in a smaller scale in rural areas. Coverage limitations of mobile broadband come from obstructions (i.e. terrain and/or vegetation) between base stations located at towers and mobile devices, and availability and access to licensed spectrum.

Legacy Technologies (2G and 3G)
These mobile technologies include packet-based data services that evolved from the GSM and CDMA mobile technologies. For GSM, these technologies include: GPRS and EDGE (100-130kbps data rates), UMTS or WDCMA (220-320kbps), HSPA (several Mbps). For CDMA these technologies include:

CDMA2000 (307KBPS), CDMA2000 EV-DO (3.1 Mbps). Limitations of these legacy technologies include low speeds in comparison to new generation mobile broadband and wireline and fixed wireless broadband.
4G Long-Term Evolution (LTE)
Long-Term Evolution (LTE) was designed by the 3rd Generation Partnership Project (3GPP) group for mobile communications in densely populated areas and can achieve aggregated data rates up to 300 Mbps allowing to provide speeds up to tens of Mbps downstream and a few Mbps upstream to customers.

The 3GPP group has released several versions of the LTE standard, from the first release (Rel-8 in 2008) to LTE-Advanced (Rel-11)62. LTE was one of the technologies chosen by the ITU for providing IMTAdvanced services or 4G mobile services, and operates in the same bands as its predecessor GSM, in addition to other bands. Most common LTE bands range from 700 MHz to 3.8 GHz. Benefits of this technology include data rates in some cases comparable to wireline and fixed wireless broadband services and providing flexible network design allowing combination of macro- and micro- cell sites to cover demand needs of specific geographical areas. Limitations include purchasing new devices that support LTE service and plans that might include data caps.
4G WiMAX

62 3rd Generation Partnership Project (3GPP). 3GPP A Global Initiative. (3rd Generation Partnership Project (3GPP)) Retrieved from http://www.3gpp.org/technologies/keywords-acronyms/98-lte Packet Pg. 461 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 59 WiMAX was one of the technologies chosen by the ITU for providing IMT-Advanced services or 4G mobile services63. It achieves aggregated data rates up to 350 Mbps allowing to provide speeds up to tens of Mbps downstream to customers. Limitations include low varieties of base stations (BSs) and CPEs due to most mobile operators and equipment manufactures shifting to LTE due to larger worldwide adoption of this technology for 4G mobile services.

9.2.4 New Technologies for Middle- and Last-Mile
Millimeter-wave
Technology operating in millimeter waves is currently used for high-speed backhauling (point to point) to connect cell sites or access points to provide high-speed Internet64. There is assigned unlicensed and licensed spectrum for millimeter-wave technology. The unlicensed millimeter-wave spectrum operates in the 60 GHz band (57-66 GHz), offering 7 GHz of bandwidth, and the licensed millimeter-wave operates in the 71-76 GHz and 81-86 GHz, offering bandwidth from 10 to 80 MHz, although for shorter distances. Equipment working on these bands is affected by heavy atmospheric absorption, which limits range of operations but also unwanted interference. Millimeter-wave can achieve up to 2.5 Gbps for a mile point to point radio link.

Unmanned Aircrafts
The initiative of using solar-powered unmanned aerial vehicles (UAVs), also known as drones, flying at 12 miles above the ground to provide Internet service in unserved areas is currently led by Google and Facebook. In April 2014, Google acquired Titan Aerospace and started the Project SkyBender, which is currently testing drones using millimeter wave technology to transmit at data rates higher than 4G LTE65. In March 2014, Facebook acquired Ascenta, UK-based drone manufacturer, and is also currently testing solar-powered drones using free space optics (highpowered laser beams) to achieve high data rate transmissions66. It is likely that both Google and Facebook will use these narrow beam and high-frequency technologies (millimeter- wave and lasers) as high-capacity backhauls and other mobile and fixed wireless technologies (mentioned above) to connect final customers. The idea of using unmanned aerial vehicles (UAVs) or drones to deploy a backhaul network is innovative and promising, but it is still in a design and testing stage with no current commercial deployments.

Unmanned Super-Pressure Balloons
Delivering broadband services using super-pressure balloons travelling in the stratosphere is a Google X initiative known as the Project Loon. This project will allow customers in rural and remote

63 Institute of Electrical and Electronic Engineers (IEEE). IEEE 802.16™: Broadband Wireless Metropolitan Area Networks (MANs). (IEEE Standards Association) Retrieved from http://standards.ieee.org/about/get/802/802.16.html
64Dehos, C., Gonzalez, J., De Domenico, A., Ktenas, D., & Dussopt, L. (2014). Millimeter-Wave Access and Backhauling: The Solution to the Exponential Data Traffic Increase in 5G Mobile Communications Systems? IEEE Communications Magazine, 88--95.
65 Heilman, D. (2016, February 1). Google's SkyBender Drones Could Deliver 5G Internet. (Sci-Tech Today) Retrieved June 2017, from http://www.sci-tech-today.com/story.xhtml?story_id=13100C1INE20 66Miners, Z. (2015, July 30). Meet Aquila, Facebook's unmanned Internet drone. (PCWorld) Retrieved June 2017, from http://www.pcworld.com/article/2955212/software-social/facebook-aims-to-launch-unmanned-drone-byyearend.html Packet Pg. 462 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 60 areas to connect to the balloons network (in the stratosphere 12 miles above the ground) and then to the Internet67. In the stratosphere, twice as high as airplanes and the weather, there are many layers of steady winds which vary in direction and speed. The balloons will travel to the needed location or route by rising or descending into a layer of wind blowing in the desired direction. To provide the broadband service, the signal from customer’s devices connect to a balloon network in the stratosphere, and then down to the global Internet on Earth, just as satellite service works at much higher latitudes, using free space optical (lasers) for the backhaul and radio frequency equipment for the access radio links. For the access radio links, the Loon project has conducted tests in rural areas in New Zealand, California and Brazil using both unlicensed ISM and licensed LTE bands.

In 2014, the Loon project expressed their interest in using LTE bands and working in partnership with operators and telecommunications companies due to the potential to achieve universal access targets mandated by countries in a cost-effective manner in the short-term, while fiber-optic backbone and terrestrial networks are being deployed in the long-term.

Gigabit Satellite
This type of broadband technology is currently offered by the company O3b68 which stands for "Other 3 Billion". This company provides satellite communication backhaul service offering low latency (less than 150ms) and data rates comparable to fiber-optic technology. O3B has a constellation of 12 satellites with a ground period of 360 minutes using the Ka-band providing a coverage of 45 degrees north/south latitudes. The satellites provide 10 beams per region (7 regions) totaling 70 remote beams for the entire constellation. Its latency is less than 150 milliseconds due to the use of Medium Earth Orbit (MEO) satellites. The maximum available aggregated throughput per beam (over a single transponder) is 1.6 Gbps (800 Mbps x 2) and each beam provides coverage of 400 miles.

Television White Spaces (TV White Spaces)
White spaces can be defined as part of the spectrum, available for a radio communication application at a given time in a given geographical area on a non-interfering/non-protected basis with regard to primary and other services. The TV White Spaces technology (IEEE 802.11af and IEEE 802.22 Standards) operates in white spaces of the broadcast television spectrum (from 54 MHz to 862 MHz)69. It was designed for wireless local area networks (WLANs) with a range up to a few miles and wireless regional area networks (WRANs) with a range up to several tens of miles. TVWS can achieve aggregated data rates of a few tens of Mbps allowing it to provide downstream speeds of a few Mbps.

The TVWS technology has the advantage of enhanced propagation features due to the use of frequencies bellow 1 GHz allowing for the penetration of walls, vegetation, moderate hills and other obstacles.

67 X (Google X) - Project Loon. Project Loon. (X (Google X)) Retrieved from https://x.company/loon/ 68O3b Networks. O3b Networks - Our Technology. Retrieved June 2017, from https://www.o3bnetworks.com/announcement.php
69 Pietrosemoli, E., & Zennaro, M. (2013). TV White Spaces - A pragmatic Approach. ICTP-The Abdus Salam International Centre forTheoretical Physics.

Packet Pg. 463 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 61 10.Glossary
25/3 Mbps: An Internet connection with a download speed of 25 megabits per second and an upload speed of 3 megabit per second. Also, the speed at which the FCC considers an Internet connection to be broadband.
6/1 Mbps: An Internet connection with a download speed of 6 megabits per second and an upload speed of 1 megabit per second. Also, the speed at which the State of California considers an Internet connection to be broadband.

ADSL2+: The next step up from standard ADSL that generally provides a faster Internet speeds.

Providers of ADSL2+ in Redding include AT&T and PAETEC Communications.

Asymmetric DSL: A DSL line where the upload speed is different from the download speed. Usually the download speed is much greater. Providers of asymmetric DSL include AT&T and Earthlink.

Backbone: A high-speed line or series of connections that forms a major pathway within a network.

Bandwidth: The capacity for data transfer of an electronic communications system. bps: A measurement of how fast data is moved from one place to another via a network or Internet connection.

Broadband: High-speed Internet access that is always on and faster than the traditional dial-up access.

Broadband Assets: Government owned assets that may assist in the deployment of broadband infrastructure. Examples include towers or tall buildings that may be used to deploy wireless infrastructure and rights-of-way to run underground conduit and fiber-optic cables.

Cable Modem DOCSIS (Data Over Cable Service Interface Specification): An international telecommunications standard that permits the addition of high-bandwidth data transfer to an existing cable TV system.

Cloud computing: The use of a network of remote servers hosted on the Internet to store, manage, and process data. An alternative to the established practice of storing and processing data on a dedicated server or computing machine.

Coverage: The geographical areas in which an ISP provides Internet connections.

CPUC: The California Public Utilities Commission. The CPUC regulates services and utilities, protects consumers, safeguards the environment, and assures Californians' access to safe and reliable utility infrastructure and services. The essential services regulated include electric, natural gas, telecommunications, water, railroad, rail transit, and passenger transportation companies.

Digital Divide: A measurement of technological equality in access to and adoption of broadband that provides metrics by census tract and county.

Packet Pg. 464 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 62 Download: An act or instance of transferring something (such as data or files) from a usually large computer to the memory of another device (such as a smaller computer) over a network or Internet connection.

Downstream: Data sent from a network service provider to a customer via the Internet.

DSL (Digital Subscriber Line): A category of technologies that transmit digital data over telephone lines. Providers of DSL include AT&T, PAETEC Communications, and Earthlink.

FCC: The Federal Communications Commission. The Federal Communications Commission regulates interstate and international communications by radio, television, wire, satellite, and cable in all 50 states, the District of Columbia and U.S. territories. An independent U.S. government agency overseen by Congress, the Commission is the federal agency responsible for implementing and enforcing America’s communications law and regulations.

Fiber-optic cable: A type of cable used for very high speed data transmission.

Fiber-to-the-premises/fiber-to-the-home (FTTP/FTTH): The installation and use of optical fiber from a central point directly to individual buildings such as residences, apartment buildings and businesses to provide high-speed Internet access.

Fixed broadband: High-speed data transmission to homes and businesses using technologies such as T1, cable, DSL and FiOS. The term excludes the cellular data market.

Fixed wireless: The operation of wireless communication devices or systems used to connect two fixed locations with a radio or other wireless link.

Gbps (gigabits per second): A measurement, in terms of gigabits, of how fast data is moved from one place to another via a network or Internet connection. A gigabit equals 1,000 megabits.

ILEC (Incumbent local exchange carrier): A local telephone company which held the regional monopoly on landline service before the market was opened to competitive local exchange carriers, or the corporate successor of such a firm.

Internet-of-things: The interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data.

IPTV: The delivery of television content over Internet networks.

ISP (Internet Service Provider): An institution/business that provides access to the Internet. Examples of ISPs include AT&T, Comcast, Earthlink, etc.

Kbps (kilobits per second): A measurement, in terms of kilobits, of how fast data is moved from one place to another via a network or Internet connection.

Last-mile: The last segment of the connection between a communication provider (e.g., telephone company central office, ISP) and the customer (usually residential, but sometimes commercial).

Packet Pg. 465 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 63 Latency: A measurement of the time it takes a data packet to travel through the network. It significantly impacts the performance of interactive, real-time applications, including VoIP, online gaming, videoconferencing, and VPN platforms.

Long-Term Evolution (LTE): A fourth generation (4G) mobile communications standard for the highspeed wireless Internet connection of mobile devices (smartphones, tablets, etc.) Machine to machine: Direct communication between devices through network or Internet connections.

Mbps (megabits per second): A measurement, in terms of megabits, of how fast data is moved from one place to another via a network or Internet connection. A megabit equals 1,000 kilobits.

Middle-mile: The network infrastructure that connects last mile networks to other network service providers, major telecommunications carriers, and the greater Internet.

No service: According to the CPUC standard, areas where broadband is offered at slower speeds than 6 Mbps downstream and 1 Mbps upstream.

OFDM (Orthogonal Frequency Division Multiplex): A form of transmission that uses a large number of close spaced carriers that are modulated with low rate data.

P2P: A network allowing two or more computers to communicate directly without having to use a router or other centralized server.

Packet Loss: The Measuring Broadband America program denotes a packet as lost if the latency exceeds 3 seconds or if the packet is never received. Packet losses might affect the perceived quality of phone calls or video conferencing.

Point of presence: An access point to the Internet and a physical location that houses servers, routers, etc. Also, an interconnection point within fiber-optic networks.

Public Right of Way (PROW): The right to cross property to go to and from another parcel. The right of way may be a specific grant of land or an "easement," which is a right to pass across another's land.

The mere right to cross without a specific description is a "floating" easement. Some rights of way are for limited use such as repair of electric lines or for deliveries to the back door of a store.

Served: According to the CPUC standard, areas where broadband is offered at speeds of at least 6 Mbps downstream and 1 Mbps upstream. According to the FCC standard, areas where broadband is offered at speeds of at least 25 Mbps downstream and 3 Mbps upstream.

Telecommuting: Working from home through the use of the Internet, email, and by telephone.

Telemedicine: The use of telecommunication and information technology to provide clinical health care from a distance.

Throughput: How much stuff you can send through a connection. Throughput is what people usually mean when they use the term "bandwidth" and it is usually measured in bits-per-second (bps) A full Packet Pg. 466 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber 64 page of English text is about 16,000 bits. A common configuration of DSL allows downloads at speeds of up to 1.544 megabits (not megabytes) per second, and uploads at speeds of 128 kilobits per second.

TVWS (TV White Space): A form of wireless technology that takes advantage of unused TV channels between the active ones in the VHF and UHF spectrum to transmit data.

Unserved: According to the FCC standard, areas where broadband is offered at slower speeds than 25 Mbps downstream and 3 Mbps upstream.

Upload: To transfer (something, such as data or files) from a computer or other digital device to the memory of another device (such as a larger or remote computer) over a network or Internet connection.

Upstream: Data transferred from a customer to a server via the Internet.

USDA: The United States Department of Agriculture.

VDSL (Very-high-bit-rate digital subscriber line): A digital subscriber line technology that provides faster data transmission than asymmetric digital subscriber line. AT&T is the only VDSL provider in Redding.

Video on demand (VoD): A system in which viewers choose their own filmed entertainment, by means of a PC or interactive TV system, from a wide selection.

VoIP technology: A technology that allows you to make voice calls using a broadband Internet connection instead of a regular (or analog) phone line.

Packet Pg. 467 Attachment: Geographical Information Center Redding Master Broadband Plan 2019 (9.1(b)--Accept Report regarding a City of Redding fiber

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept an oral report recapping the City of Redding’s participation in the Northern California Power Agency’s 2024 Legislative Staff Tour.

Background/Analysis
Northern California Power Agency (NCPA) is a public Joint Powers Agency formed in 1968 under California’s Joint Exercise of Powers Act, whose members include the cities of Alameda, Biggs, Gridley, Healdsburg, Lodi, Lompoc, Palo Alto, Redding, Roseville, Santa Clara, Shasta Lake and Ukiah, as well as the Bay Area Rapid Transit District, Port of Oakland, the Truckee Donner Public Utility District, and the Plumas-Sierra Rural Electric Cooperative. While NCPA provides members a full suite of services, including generation and scheduling, Redding’s participation is generally limited to coordinated training activities, legal action, and legislative and regulatory advocacy.

Each year, NCPA organizes a tour of member service areas specifically for federal and state legislative staffers. The purpose of these tours is to highlight critical issues affecting utilities, such as legislative actions or regulatory challenges. Additionally, these tours provide an opportunity for utility staff to advocate for solutions that ensure safe, reliable, and affordable power for their customers.

NCPA’s 2024 Legislative Tour was July 16-18, including stops in Redding, Shasta Lake, Susanville, Truckee, and Roseville. The stop in Redding included a demonstration of Redding Electric’s Emergency Operations Center, presentations by Vice Mayor Julie Winter and Electric Utility Director Nick Zettel, and tours of the Carr Fire burn area and Shasta Dam.

For this oral report, Director Zettel will discuss the challenges faced by electric utilities in California as they march towards a zero-carbon future, as presented to the Legislative staffers.

MEETING DATE: August 20, 2024
ITEM NO. 9.5(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(a)--Oral report regarding Northern California Power Agency's 2024 Legislative Staff Tour.

Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 468
Report to Redding City Council August 13, 2024
Re: 9.5(a)--Accept Oral Report on NCPA's 2024 Legislative Staff Tour Page 2 Attachments
Redding Electric Utility Overview 2024
Packet Pg. 469

UTILITY

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Packet Pg. 473 Attachment: Redding Electric Utility Overview 2024 (9.5(a)--Accept Oral Report on NCPA's 2024 Legislative Staff Tour)


 




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#7 Shasta Lake City..........................$161
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#15 Palo Alto................................$187
#25 PG&E - Pacific Gas & Electric..............$396
#24 SDG&E San Diego.................................$379 Based on Residential Bill Cost at 816 kWh as of Feb 2024 California Electric Rate Comparison
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Packet Pg. 476 Attachment: Redding Electric Utility Overview 2024 (9.5(a)--Accept Oral Report on NCPA's 2024 Legislative Staff Tour)


 




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Packet Pg. 478 Attachment: Redding Electric Utility Overview 2024 (9.5(a)--Accept Oral Report on NCPA's 2024 Legislative Staff Tour)


 



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Packet Pg. 480 Attachment: Redding Electric Utility Overview 2024 (9.5(a)--Accept Oral Report on NCPA's 2024 Legislative Staff Tour)


 


 Packet Pg. 481 Attachment: Redding Electric Utility Overview 2024 (9.5(a)--Accept Oral Report on NCPA's 2024 Legislative Staff Tour)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to the City of Redding (City) Sports Park:
(1) Accept the report regarding short-term operations;
(2) Direct staff to pursue a City-run, short-term operations plan; and (3) Authorize the City Manager to administratively approve an expenditure of up to $200,000 for Park operations and minor maintenance repair.

Fiscal Impact
Facilitating short-term operations will require an appropriation of $200,000 from the General Fund. This initial budget would allow the City of Redding (City) to cashflow operational costs while revenue is generated. Operational costs include: payroll, utilities, maintenance and contracts as expenses occur.

Facility revenue can backfill the operating budget with the goal of operational sustainability.

Revenue and expense assumptions are based on user-provided data pertaining to historical schedules, costs, and operations. However, these assumptions have yet to be proven, and a broad budget is necessary to fund the estimated park operations. Based on known expenses and staffing projections, the budget should cashflow operations for at least two months. Projected revenues will backfill and allow the startup budget to fund operations for six months, at which time staff anticipates the City Council (Council) will authorize a long-term direction and an updated budget.

Alternative Action
The Council could choose not to select a short-term option or provide an alternate direction to staff.

MEETING DATE: August 20, 2024
ITEM NO. 9.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(a)--Consideration of Short-Term Operations Plan Options for the Redding Sports Park
Travis Menne, Director of
Community Services
Packet Pg. 482
Report to Redding City Council August 15, 2024
Re: 9.6(a)--Short-Term Operations for the Redding Sports Park Page 2 Background/Analysis
At their meeting on July 29, 2024, the Council unanimously voted to terminate the Sports Park Lease Agreement (C-0458) after receiving a notice of surrender from Big League Dreams, effectively closing the Sports Park. During that meeting, the Council directed staff to return with options for short-term operations of the Redding Sports Park (Park). Since then, City staff has met with nine organizations representing teams, leagues, and tournament directors about their groups' present and future needs at the Park. These groups provided key insights into operations and the unmet needs of the Park users as staff collected needed data points to plan for nearnormal levels of service at the Park. Staff included the representatives from Shasta Regional Soccer Association (SRSA) in multiple meetings with user groups to gather information and provide consultation. Additionally, staff met with SRSA several times and toured the facility to gather operational data. After this process, the City and SRSA concluded that the City is best suited for operating the Park in the immediate term.

Staff has conceptualized a model in which the Community Services Department (Department) operates the facility for approximately six months while developing long-term options for Council to consider at a future meeting. In this model, the Department’s Recreation Division would operate the facility with existing and additional staff. Services could include operations of the Field House and ballfields, focusing on leagues ran by outside organizations, existing tournaments, and practices. Staff would identify a programming matrix and work with outside groups as partners to help facilitate activities as staffing allows. In the short-term, organizing and running in-house leagues would be problematic as it requires too much staff time. The community, however, would be encouraged to form user-led groups that can facilitate league play as staff gains experience running the facility and capacity improves. Furthermore, the Department's Parks and Building Maintenance Divisions would perform basic maintenance and repairs.

In the interim, staffing would be limited to basic services, and concessions would not be feasible.

Additionally, the City would only perform large capital improvements once a long-term plan and appropriate funding is in place. The City may also need to rely on partnerships and volunteers for some operational components, a strategy which is generally supported by existing user groups.

This short-term model allows for most of the existing programming and minimal ongoing disruption to user groups. With direction from Council staff will create the appropriate long-term plans necessary to ensure the Park can serve the community and work toward restoring it as a quality community asset.

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

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Packet Pg. 483
Report to Redding City Council August 15, 2024
Re: 9.6(a)--Short-Term Operations for the Redding Sports Park Page 3 Attachments
Previous Staff Report - July 29, 2024
Packet Pg. 484

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to the Sports Park (Park) Lease Agreement (C-0458) with Big League Dreams Redding, LLC:
(1) Authorize the termination of the Park Lease Agreement (C-0458) with Big League Dreams Redding, LLC in accordance with Section 17 of the Lease Agreement effective immediately; and
(2) Direct staff to explore options for the future operations and maintenance of the Park, to include but not be limited to, operating the Park in-house and issuing a Request for Proposals for a third-party operator.

Fiscal Impact
In March 2023, Big League Dreams USA (BLD) signed a Letter of Agreement (LOA) agreeing to repay past due lease payments totaling $182,818. Since then, BLD made three monthly payments of $18,000 each per the LOA terms, after which they have not made any other payments toward their LOA debt. BLD also failed to pay lease payments for the second, third and fourth quarters of 2023, as well as the first two quarters of 2024. BLD made one payment of $10,000 on May 7, 2024. Since BLD failed to submit the first and second quarter reports to the City of Redding (City), the current total owed in quarterly payments cannot be accurately calculated. Based on recent years’ average first and second quarter payments, and the past due lease payments, BLD owes the City approximately $215,182.74.

The fiscal impact of terminating the lease is unknown at this time.

Alternative Action
City Council (Council) could choose not to terminate the contract. This alternative would allow BLD to continue to operate the Big League Dreams Sports Park (Park). This option may not be available as BLD has ceased operations and has not obtained insurance to continue operations.

MEETING DATE: July 29, 2024
ITEM NO. 3.1
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 3.1--Consider termination of Contract with Big League Dreams Redding, LLC.

Travis Menne, Director of
Community Services
Packet Pg. 485 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Report to Redding City Council July 26, 2024
Re: 3.1--Terminate Contract with Big League Dreams Redding, LLC Page 2 Background/Analysis
In 2001, the City and BLD Redding executed a lease agreement (Agreement) for the operation and maintenance of the Park. In 2004, the Park was opened and the start of the 35-year lease term began. The agreement conditions require BLD to pay monthly lease payments equivalent to six percent of gross receipts after the first three years. BLD paid over $950,000 in lease payments through May 2019. At that point, BLD fell behind in its payments compounded by COVID restrictions which closed the Park for almost a year. In August 2022, TC Sports acquired all nine BLD facilities and took over operations.

On February 21, 2023, Council approved the LOA (C-0458) with BLD USA for the payment of past due lease obligations of BLD Redding and a capital improvement plan to address Park repairs, replacements and improvements. On July 20, 2023, the LOA was amended to extend the timeline for many of the projects. The current status of the improvements is noted below:

Project Status Notes
BLD was required to complete the capital improvements below by August 15, 2023:

Batting Cage Repairs Complete
New POS System Partially complete
Paint Buildings Partially complete In progress
Paint Outfield Replica Walls Partially painted Decals missing Parking Lot Lighting Complete
Stadium Club Paint Exterior complete
Fix All Broken Stadium Seats Incomplete
Pawtucket Grading Repairs in
Outfield
Incomplete
Restroom Upgrade Incomplete
Stadium Club Flooring Incomplete
BLD was required to complete the capital improvements below by October 1, 2023:

Repair Shade Structures - Replica
Fields
3 of 5 complete Not installed
BLD was required to complete the capital improvements below by March 31, 2024:

Turf Installation at Home Base Incomplete Not started
Turf Replacement Infield Incomplete Not started
Sand in Volleyball Courts Incomplete Not started
Staff issued a letter to BLD on April 18, 2024, which stipulated that if payment was not made by a certain date, the City would issue official notice to cure pursuant to Section 17 of the Agreement. On June 28, 2024, after receiving only partial payment, the City issued a formal notice to cure under the contract. The notice demanded payment for all past due rents and penalties, plus the performance of the maintenance items and capital improvements listed above.

The notice was issued pursuant to Sections 17.a.i (failure to pay rent), 17.a.iv (default under Packet Pg. 486 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Report to Redding City Council July 26, 2024
Re: 3.1--Terminate Contract with Big League Dreams Redding, LLC Page 3 related agreements) and 17.a.v (other default). The Agreement gives BLD 10 days to cure the failure to pay rent and 30 days to cure most other failures. BLD has since failed to make payment within the 10-day period.

With the delinquent payments, substandard maintenance, and failure to perform capital improvements identified in the LOA, BLD is in breach of contract. Section 17.b.ii of the Agreement allows the City to terminate the lease with BLD and take possession of the Park.

Should Council decide to exercise this option, BLD will be required to vacate the Park and remove its property. However, in this case, several decisions regarding short- and long-term options must be made. First, the City must act on the operations of the Park. There are many tournaments and leagues scheduled at the Park. Without an operator or budgeted funds with a detailed plan for staff to take over operations, it is likely the Park will need to be shut down, causing the events to be cancelled and impacting the community. As of this writing, it appears BLD has vacated the Park causing a disruption of the aforementioned events.

Staff has currently identified the following long-term options Council could choose from:

1. Direct staff to develop and issue a Request for Proposals for a new tenant to lease the Park.

2. Direct staff to develop an operations and maintenance plan to run the Park in house.

3. Direct staff to look into selling the Park to another party.

With general direction from Council staff will create plans and develop the strategies needed to ensure the Park can serve the community and work toward restoring it as a quality community asset.

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

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Notice of Surrender - BLD Redding 07-25-24
C-0458_BLD Lease
C-0458_BLD Lease_Amend 1
C-0458_BLD Lease_Amend 2
C-0458_BLD Lease_Amend_3
C-0458 Letter of Agreement
C-0458 - First Amendment - 2023 - Big League Dreams USA Packet Pg. 487 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) July 25, 2024

VIA ELECTRONIC AND CERTIFIED MAIL
City of Redding
c/o Travis Menne, Director of Community Services
777 Cypress Avenue
Redding, California 96001
Email: [email protected]
City of Redding
c/o Redding City Attorney
777 Cypress Avenue
Redding, California 96001
RE: Big League Dreams Redding Sports Park
Mr. Menne:

Our office serves as outside general counsel for Big League Dreams Redding, LLC (“BLD Redding”) and its affiliates. As such, please direct all future legal-related communications to our office. All terms not defined herein shall have the meaning as set forth in the Sports Park Lease between City of Redding (the “City”) and BLD Redding.

This letter shall serve as formal notice of surrender of the Sports Park effective as of July 26, 2024. As previously explained in BLD Redding’s correspondence dated July 15, 2024, the Sports Park has operated at a loss for some time. BLD Redding attempted to find an amicable solution that allowed for the smooth transition of the Sports Park, but the City’s response made clear it was not aligned with the same belief. BLD Redding simply does not have the funding to continue to operate at a loss.

As such, BLD Redding has made the difficult decision to surrender possession of the Sports Park back to the City for the City’s continued use and operation. BLD Redding remains willing to provide a certain level of assistance in the transition of the Sports Park. To that end, you may contact Kevin Flora ([email protected]) or Larry Reynolds ([email protected]) to discuss logistics of the transition of the Sports Park.

If there are questions related to the surrender or other legal matters, please direct those questions to our office. I can be contacted at (972) 370-3333 or via email at [email protected].

Thank you,
Justin J. Dertinger
Packet Pg. 488 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park)

SPORTS PARK LEASE
between

CITY OF REDDING
and

BIG LEAGUE DREAMS REDDING, LLC
Packet Pg. 489 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) "rzh- THIS SPORTS PARK LEASE (this "Agreement") is entered into this 2 L\ day of May, 200 1, by and between the CITY OF REDDING, a Municipal Corporation referred to in this Agreement as "Landlord", and BIG LEAGLE DREAMS REDDING, LLC, referred to in this Agreement as "Tenant".

RECITALS
A. Landlord desires to develop and own a multi-purpose sports facility (the "Sports Park") on certain real property (the "Land") owned by or to be acquired by the City. A plot plan of the Land is attached as Exhibit 1, and is incorporated herein by this reference.

B. Landlord intends to construct the Sports Park in general conformance with the Project Description attached as Exhibit 2, and within the Project Budget attached as Exhibit 3, both of which exhibits are incorporated herein by this reference.

C. Landlord desires to lease the completed Sports Park to Tenant and Tenant desires to lease the completed Sports Park from Landlord for the purpose of operating the Sports Park in accordance with the terms of this Agreement. The Land and the Sports Park Improvements to be hereafter constructed thereon are sometimes collectively referred to as the "Premises". The lease of the Premises by Tenant from Landlord shall be in accordance with the terms and conditions set forth in this Agreement.

NOW THEREFORE, the parties agree as follows:

AGREEMENT

1. Definitions. The following terms used in this Agreement shall have the meanings given unless expressly provided to the contrary:

Affiliate means Richard Odekirk, Jeff Odekirk, or any entity other than BLD USA in which Messrs. Odekirk and Odekirk, individually or collectively, or Tenant, owns at least a fifty percent (50%) capital or voting interest of the common stock, partnership units or limited liability company interests, as applicable.

Agreement means this Sports Park Lease.

Annual Revenues Statement is defined in Section 4(c)(ii).

Award, Condemnation, Condemner and Date of Taking, are defined in Section 15.

BLD USA Allocations are defined in Section 4(b)(iii).

BLD Sponsorships are defined in Section 4(b)(iii).

Packet Pg. 490 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
BLD USA means Big League Dreams USA, LLC, a California limited liability company.
& means the City of Redding, an incorporated municipality within the County of Shasta, State of California.

City Days are defined in Section 29(a).

City Manager means the City Manager of the Landlord.

City Use Permit shall mean the use permit with respect to the Sports Park to be approved by the City.

Controlling Percentage means the ownership of, or the right to vote, fifty-one percent (51%) or more of the total combined voting shares, units or membership interests of a corporation, partnership or limited liability company, as applicable.

Environmental Impact Report Mitination Measures shall mean the mitigation measures associated with the environmental impact report (a) approved at a meeting of the City Council of the City on March 20,2001, (b) as to which a notice of determination was filed by the City on March 26,2001, and (c) determined by the City Council of the City to be applicable to the Sports Park and the Project on April 3,2001, which are referenced on the attached Exhibit 4.

FF&E shall mean all furniture, furnishings, trade fixtures, apparatus and equipment required for operation of the Sports Park. A list of the anticipated FF&E is attached as Exhibit 5 and incorporated herein by this reference. Tenant shall have the right to review and make additions and revisions to the FF&E list set forth in Exhibit 5 with the approval of the Landlord, which approval shall not be unreasonably withheld. The type, quality and craftsmanship ofthe FF&E shall be no greater or no less than that of the furniture, fixtures and equipment to be installed or constructed at the Big League Dreams Sports Park in Chino Hills, California. The FF&E will be owned and paid for by Landlord and be leased to Tenant as part of this Agreement.

Gross Revenues are defined in Section 4(b)(i).

Hazardous Materials are defined in Section 30(a).

Indemnitees is defined in Section 14(f).
- Land is that certain real property described in Exhibit 1.

Packet Pg. 491 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
Landlord means the City of Redding, a municipal corporation, and its permitted successors and assigns.

Lease Year means the period from January 1 of each calendar year to December 3 1 of such calendar year (both dates inclusive) during the Term hereof; except that if the Term Commencement Date does not fall on a January 1, the first Lease Year shall be that period from the Term Commencement Date to the next following December 3 1, and that if the Term does not end on a December 3 1, then the last Lease Year shall be the period commencing with the last preceding January 1 and ending at the end of the Term hereof. The first Lease Year shall be considered a partial Lease Year for all purposes of this Agreement unless the Term Commencement Date is on or before March 15 of the Lease Year during which the Term Commencement Date occurs.

Legal Challenge shall mean any action or other legal proceeding (including,. without limitation, any California Environmental Quality Act (CEQA) challenge) brought by any third party seeking to block construction of the Sports Park Improvements or to contest the validity of this Agreement or of any Related Agreement.

Marketing Plan shall mean the Big League Dreams Redding Marketing Plan attached as Exhibit 6.

Memorandum of Lease means that certain Memorandum of Lease executed concurrently herewith and to be recorded pursuant to Section 3 1 (q).

Partv means either party to this Agreement. The "Parties" shall be all parties to this Agreement.

Percentage Rent is defined in Section 4(a)(ii).

Plans and Specifications means all concept drawings, preliminary drawings, landscaping and grading plans, site plans, engineering drawings, reports, final construction drawings, and any other plans or specifications consistent with the Project Description and required for construction of the Project as prepared by Landlord at its sole expense and those provided pursuant to the Planning, Design and Construction Consulting Services Agreement between the City and BLD USA to be entered concurrently with this Agreement.

Premises means the Land, the Sports Park Improvements and all easements or rights of way necessary or desirable for access to the Land and the Sports Park Improvements.

Proiect means the development of the Sports Park on the Premises in accordance with the Project Description, the Plans and Specifications, and this Agreement.

Packet Pg. 492 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
Pro-iect Description means a preliminary description of the Sports Park containing conceptual artist renderings, a site plan and a list of the buildings, fields, spaces, structures, elements and features to be included in the Sports Park as described in the attached Exhibit 2.

Punch List is defined in Section 9(b).

Quarterly Revenues Statement is defined in Section 4(c)(i).

Related Agreements shall mean the Planning, Design and Construction Consulting Services Agreement between BLD USA and the City, and the License Agreement between BLD USA and the City, both of which shall be executed approximately concurrently with the execution of this Agreement.

Sports Park means the Sports Park facility to be designed and constructed by the Landlord on the Land as generally depicted in the Project Description attached hereto as Exhibit Sports Park Improvements means all buildings, fields, structures, advertising displays, landscaping, infrastructure, utilities, FF&E (as herein defined), and other improvements constructed or installed or to be constructed or installed on the Land by Landlord and leased by Tenant pursuant to this Agreement.

Statutes are defined in Section 8(a).

Taxes are defined in Section 6(b).

Tenant means Big League Dreams Redding , LLC, a California limited liability company, its permitted successors and assigns. The members of Tenant are BLD USA, Richard Odekirk and Jeffrey Odekirk.

Term is defined in Section 3(a).

Term Commencement Date means for purposes of the leasing ofthe Premises pursuant to this Agreement, the earliest date upon which (a) Tenant shall have accepted in writing the Sports Park Improvements, or (b) the City shall have issued a Certificate of Occupancy, or (c) possession of the Premises shall have been delivered to Tenant and (d) all permits and licenses required to sell beer, wine and liquor shall have been obtained by Tenant.

2. Lease of Premises. Effective as of the Term Commencement Date, Landlord leases the Premises to Tenant, and Tenant leases the Premises from Landlord, for the Term set forth in Packet Pg. 493 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
Section 3, subject to and on the terms and conditions set forth in this Agreement. The lease of the Premises shall not be effective until the Term Commencement Date.

3. Term.
a. Term. The lease term of this Agreement (the "Term") shall commence on the Term Commencement Date and shall end on the last day of the calendar month that is thirty-five (35) years after the Term Commencement Date, unless sooner terminated by Landlord as otherwise provided for herein. Upon Landlord's request, Tenant will co-sign Landlord's written confirmation of lease commencement and termination dates.
b. Minimum Percentage Rent. Landlord, in its sole discretion, shall have the right to terminate this Agreement and all further rights and obligations of the parties hereunder by giving written notice of such termination (which shall specify a date not less than ninety (90) days thereafter on which such termination shall become effective) to Tenant at any time during the first ninety (90) days of the tenth (1 0th) Lease Year of this Agreement if, but only if, during the seventh (7th), eighth (8th) and ninth (9th) Lease Years of this Agreement, Tenant has paid to Landlord Percentage Rent as provided in Section 4 below averaging less than $75,000.00 per year for such three (3) year period. With respect to the ninth Lease Year, Tenant may, at its option, pay Landlord additional Percentage Rent beyond what is required in Section 4 to meet the Percentage Rent average payment requirement set forth in the previous sentence and thereby avoid termination of this Agreement by Landlord.

4. Rent. Tenant shall pay to Landlord Percentage Rent, without deduction, set-off, prior notice, or demand, as follows:
a. Percentage Rent.

1. First Partial and First Three Full Lease Years. In the first partial Lease Year (if applicable) and in each of the first three full Lease Years, Tenant shall pay no Percentage Rent (defined below) unless Gross Revenues in any Lease Year shall have exceeded $2,600,000. If Gross Revenues for the first partial or any of the first three full Lease Years exceeds $2,600,000, Tenant shall pay to Landlord as Percentage Rent six percent (6%) of all Gross Revenues earned by Tenant, at the times and in the manner set forth in Section 4(a)(ii) below, for the quarter in which the $2,600,000 annual Gross Revenues threshold is crossed, quarterly for each quarter of the next Lease Year and quarterly for each quarter of each Lease Year thereafter except as otherwise provided in this Section 4. Tenant shall not be obligated to pay any Percentage Rent for the quarters of the Lease Year prior to the quarter during which the $2,600,000 annual Gross Revenues threshold is crossed. As an illustration, assume the final accounting for the fourth quarter of the second full Lease Year shows Gross Revenues exceeded $2,600,000 for the second full Lease Year. As provided above, Tenant would not have been obligated to make any Percentage Rent payments for the first three quarters of that second full Lease Year, and would not be required hereby to do so Packet Pg. 494 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
retroactively. Once the threshold is crossed, Tenant would be required to pay Percentage Rent on a six percent (6%) basis as to Gross Revenues earned during the fourth quarter of the second full Lease Year (payment due by February 14 of the third full Lease Year) and for each quarter of each Lease Year thereafter.
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11 Fourth and Subsequent Full Lease Year Pavments. Except as otherwise provided in subsections (i) or (iii), commencing with the first quarter of the fourth (4") full Lease Year and continuing for every subsequent Lease Year, Tenant shall pay to Landlord, at the times and in the manner specified in this Agreement, Percentage Rent for each Lease Year ("Percentage Rent"). Percentage Rent shall be calculated by multiplying Tenant's Gross Revenues from the Premises for the applicable period by six percent (6%). The Percentage Rent shall be paid quarterly, in arrears, within forty-five (45) days following the end of each calendar quarter during the applicable Lease Year.
iii. Fourth and Subsequent Full Lease Year Continnent Pavments. If, as to the fourth full Lease Year or any Lease Year thereafter, Gross Revenues exceed $3,250,000, then Tenant shall pay to Landlord as Percentage Rent eight percent (8%) of all Gross Revenues (rather than six percent (6%)) earned by Tenant, at the times and in the manner set forth in Section 4(a)(ii), for the Lease Year in which such $3,250,000 Gross Revenues threshold was crossed, for the next Lease Year and for each Lease Year thereafter. As an illustration, assume the final accounting for the fourth quarter of the seventh full Lease Year shows Gross Revenues exceeded $3,250,000 for that seventh full Lease Year. As provided above, Tenant would already have been obligated to make Percentage Rent payments for the first three quarters of the seventh full Lease Year at the six percent (6%) rate. Once the threshold is crossed, Tenant would be required to pay Percentage Rent on an eight percent (8%) basis as to Gross Revenues earned during the fourth quarter of the seventh full Lease Year (payment due by February 14 of the third full Lease Year). In addition, Tenant shall also be required to pay, by the same February 14 payment date on a retroactive basis, additional Percentage Rent in the amount of two percent (2%), equal to the difference between eight percent (8%) and six percent (6%), multiplied by the Gross Revenues earned during the first three quarters of the seventh full Lease Year.
b. Gross Revenues.

I. Definition. "Gross Revenues" are defined as all revenues received by Tenant, or any Affiliate of Tenant relating to or derived from the Premises and the Project, determined on an accrual basis, including the BLD USA Allocations to Tenant (but excluding BLD USA gross revenues not allocated to Tenant as BLD USA Allocations) as set forth in Section 4(b)(iii), minus the exceptions and authorized deductions described in Section 4(b)(ii). Gross Revenues include, without limitation, all cash and credit revenue of Tenant; finance charges to customers, in case of sales on credit, whether or not payment is actually made, at, in, on, or from the Premises; revenues from the sale of gift certificates, when such revenues are received; gross revenues received by Tenant from food, liquor and beverage sales; facility rental or usage charges; admission Packet Pg. 495 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
charges; vending machine sales; all service fees or other consideration paid to Tenant as compensation for Tenant's sale or distribution of lottery tickets, hunting and fishing licenses, or in connection with any other local, state, or federal lottery or licensing program similar to the foregoing; all charges for services, alterations or repairs made at, in, on, or from the Premises; the gross amount received by Tenant for merchandise sold pursuant to orders received in or from the Premises, whether such order is filled at the Premises or elsewhere; revenues from advertising, signs, and promotions; other cash consideration paid by advertisers; proceeds of business interruption insurance received by Tenant; fees and rebates paid by vendors to Tenant in consideration for the right to sell such vendors' food, beverage or merchandise from the Premises; lease rent payments or other compensation from any sublessee or subtenant of all or part of Tenant's interest in this Agreement or the Premises, unless the revenues derived by such sublessee's or subtenant's operations from the Premises have already been included in the calculation of Tenant's Gross Revenues; any compensation paid to Tenant by an assignee of all or part of Tenant's interest in this Agreement or the Premises, unless Tenant is not relieved of its obligations under this Agreement by such assignment or the assignment is to an entity in which Tenant or its members have retained a Controlling Percentage; and the gross amount received by Tenant from Tenant's subtenants, licensees and concessionaires from all sources of income derived from the businesses conducted on the Premises, unless such sources of income have already been included in the calculation of Tenant's Gross Revenues.
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11. Exceptions andDeductions fiom Gross Revenues. All ofthe following shall be excepted from Tenant's Gross Revenues: (A) the amount of all sales tax receipts required to be accounted for by Tenant and paid to any government or governmental agency, but not the amount of any excise tax (except a consumer excise tax) or other governmental obligation in the nature of a tax on the privilege of doing business; (B) the amount of any actual refunds or credits made by Tenant with respect to goods, services or fees, provided the goods, services or fees were previously included by Tenant in Tenant's Gross Revenues; (C) the amount of any revenues received by any licensee or concessionaire (unless such licensee or concessionaire is an Affiliate) operating in or from the Premises which are not paid or required to be paid to Tenant, provided that such revenues are not derived fiom the sale of food, beverages or liquor; or from the collection of league or player fees or field rentals; or from the collection of gate admissions; or from batting cage revenues; (D) the amount of any revenues received by non-Affiliate special or corporate events promoters, impresarios, outside catering companies, camp/ clinic operators, tournament organizers or similar third party independent contractors (including revenues derived from the sale of food, beverages or liquor) involved in the sponsorship, placement, promotion or conduct of special events, corporate events, camps/clinics or tournaments at the Sports Park, which revenues are not paid or required to be paid to the Tenant; (E) the amount of sponsorship or advertising or group business revenues generated from the Project which are received by Tenant from sponsors or advertisers or group business customers but are paid to non-Affiliate advertising agencies, hotel concierge desks, destination management companies, brokers or other referral sources as commissions; (F) gratuities paid or given by customers to food service employees of the Sports Park; (G) proceeds of insurance other than business interruption insurance; (H) loan proceeds; (I) credits or refunds received from Packet Pg. 496 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
vendors or other third parties as a result of damage claims made by Tenant with respect to defective goods or services previously purchased; (J) checks or other instruments returned for insufficient funds; and (K) late charges or interest assessed and received on delinquent accounts receivables. iii. BLD USA Allocations. BLD USA owns and organizes tournaments played and camps/clinics held at the various Big League Dreams Sports Parks; contracts with hotels to receive commissions on room nights reserved by participants in tournaments held at the various Big League Dreams Sport Parks; and sells sponsorships to entities interested in having a commercial identification with the various Big League Dreams Sports Parks, and shall have the right to do all of the foregoing with respect to the Sports Park. Except as otherwise provided in the remainder of this subpart (iii) with respect to revenues paid by BLD USA to Tenant (the "BLD USA Allocations"), revenues derived by BLD USA shall not be considered Gross Revenues. All other forms of Gross Revenues (including, specifically, revenues from all league and player registrations with respect to all sports played at the Sports Park; batting cages; food and beverage; group business; special events; gate admissions; merchandising; arcade; and park tournaments) related to the Sports Park are created solely by Tenant and all, subject to Section 4(b)(ii), shall be included in Gross Revenues. As to BLD USA tournaments and camps/clinics, BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenues, a field rental charge not less than the maximum field rental charge made by Tenant to any third party tournament organizer or camps/clinic operator during the applicable Lease Year. BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenues, fifty percent (50%) of all hotel commissions received by BLD USA for room nights reserved by participants in tournaments held at the Sports Park. "BLD S~onsorships" shall mean any agreement entered by BLD USA with any entity by which such entity is given the right to identify commercially with Big League Dreams Sports Parks as a sponsor, preferred company or other designation of similar import and where such commercial identification rights extend to more than one Big League Dreams Sports Park. BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenues, fifty percent (50%) of the cash revenues received from such a BLD Sponsorship divided by the number of Big League Dreams Sports Parks to which the BLD Sponsorship applies.

As to any advertising or sponsorship sales made by BLD USA or Tenant which do not constitute BLD Sponsorships, BLD USA shall pay to Tenant, and Tenant shall include in Gross Revenue, eighty percent (80%) of the cash revenues received from such a non-BLD Sponsorship. In the event, however, (A) any entity controlled by BLD USA enters a lease agreement for the construction and operation of a new Big League Dreams Sports Park, and (B) such lease shall contain BLD USA Gross Revenue allocation provisions which, taken as a whole, are more favorable to the new lessor than the BLD USA Gross Revenue allocation provisions set forth above, taken as a whole, are to Landlord, then this Agreement shall @so facto be deemed amended to make such more favorable provisions, taken as a whole, applicable to Landlord under this Agreement from that time forward. iv. Sales Recordinn and Records Tenant shall record at the time of sale, in the presence of the customer, receipts from sales or other transactions, whether cash or credit, in a cash register or registers, or a point of sale terminal or terminals, having a tape that accumulates Packet Pg. 497 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
and consecutively numbers all transactions. A receipt from any transaction showing the correct amount of purchase shall be offered to the customer at the time of any transaction, including any cash sale. Transactions not ordinarily recorded in a cash register or point of sale terminal shall be noted on and kept in a ledger format. Tenant shall keep, and all sublessees, concessionaires, franchisees, contractors, and licensees of Tenant shall keep, or, with five (5) days' advance written notice, make available, at the Premises:
(1) full and accurate books of account and records in accordance with generally accepted accounting principles consistently applied, including, without limitation, a sales journal, general ledger, and all bank account statements showing deposits of revenues; (2) all cash register or point of sale terminal receipts with regard to the Gross Revenues, credits, refunds, and other pertinent transactions made fiom or on the Premises (including the revenues of any sublessee, franchisee, contractor, licensee, or concessionaire); and
(3) detailed original records of any exclusions or deductions from Gross Revenues (including any exclusions or deductions fiom Gross Revenues of any sublessee, franchisee, contractor, licensee, or concessionaire). These books, receipts, and records shall be kept at the Premises, or at the headquarters of BLD USA, for a period of five (5) years after the end of each Lease Year, and shall be made available for inspection and audit by Landlord and Landlord's representatives at the Premises on five (5) days' advance written notice. In addition, on request of Landlord or Landlord's representatives, Tenant agrees to furnish copies of Tenant's state and local sales and use tax returns.
c. Quarterly and Annual Revenues Statements.

1. Quarterly Revenues Statement. Each payment of Percentage Rent shall be accompanied by a statement, to be certified as correct by Tenant or the employee of Tenant authorized so to certify, that sets forth Tenant's Gross Revenues (and any authorized exclusions and deductions thereto) for the quarter just concluded ("Quarterlv Revenues Statement"). Quarters shall be calendar year quarters, ending on March 3 1, June 30, September 30, and December 3 1, respectively.
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11. Annual Revenues Statement. Within sixty (60) days following the end of each Lease Year, including the last Lease Year of the Term, Tenant shall furnish Landlord with a statement of Tenant's annual Gross Revenues on account of the previous Lease Year, or any partial Lease Year, including any authorized deductions ("Annual Revenues Statement"). Such Annual Revenues Statement shall be certified as correct by an authorized oficer of Tenant. iii. Content. Each Quarterly Revenues Statement and Annual Revenues Statement shall set forth the total Gross Revenues for the preceding quarter or Lease Year, as Packet Pg. 498 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
applicable, and shall show the method of computing the Percentage Rent due for such quarter or Lease Year, as applicable.
d. Audit Rights.

1. Audit Procedures. The acceptance by Landlord of any monies paid to Landlord by Tenant as Percentage Rent for the Premises as shown by any Annual or Quarterly Revenues Statement furnished by Tenant shall not be an acceptance by Landlord of the accuracy of the statement, or of the sufficiency of the amount of Percentage Rent payments, but Landlord shall be entitled at anytime and from time to time during the Term, until the date that is five (5) years after the end of the Lease Year for which any of the Percentage Rent payments have been paid, to question the sufficiency of the amount paid and the accuracy of any and all statements furnished by Tenant to justify the amount Tenant shall pay as Percentage Rent, and to confirm and evaluate Tenant's statement of its Gross Revenues from the Premises. At any time during the Term and within five (5) years after the end of the Term, Landlord may cause an audit of Tenant's books and records (and the books and records of BLD USA related to a calculation of Gross Revenues subject to the BLD USA Allocations, which Tenant shall cause to be made available to Landlord) an independent accountant of Landlord's own selection for any Lease Year. If any Annual Revenues Statement for such Lease Year delivered by Tenant to Landlord is found to be less than the amount of Tenant's actual Gross Revenues for the period covered by the statement, Tenant shall immediately pay to Landlord any additional Percentage Rent shown to be payable by Tenant. If the audit reveals that the correct amount of Gross Revenues is more than five percent (5%) greater than the amount shown on the Annual Revenues Statement previously delivered by Tenant for the period covered by such statement, Tenant shall immediately pay to Landlord the cost of the audit and any additional Percentage Rent shown to be payable by Tenant, together with interest on the amount of the underpayment of Percentage Rent from the original due date at the default rate specified in Section 18c, plus additional rent equal to five percent (5%) of the Percentage Rent payable for such Lease Year; otherwise, the cost of this audit shall be paid by Landlord. If, ten (10) days after written request therefor specifying Tenant's failure to comply with the reporting obligations hereunder, Tenant fails to provide to Landlord any Quarterly Revenues Statement or Annual Revenues Statement in the manner specified in this Agreement, this failure shall constitute a default under this Agreement. In such an event, Landlord shall have the right, in addition to any other rights or remedies it may have under this Agreement, to conduct an audit to determine these revenues. Tenant shall immediately reimburse Landlord for the cost of such audit on written demand by Landlord. If any such Quarterly Revenues Statement or Annual Revenues Statement reports Gross Revenues found to be more than ten percent (1 0%) less than the amount of actual Tenant's Gross Revenues shown by this audit, the understatement shall be deemed willful and Landlord may terminate this Agreement upon written notice given at any time within one hundred eighty (1 80) days after receipt of the audit by Landlord. If at any time Tenant causes an audit of Tenant's business at the Premises to be made by an independent accountant, Tenant shall furnish Landlord with a copy of the report of this audit at no cost to Landlord, within ten (10) days after Tenant's receipt of the audit report. . .

11. Examination ofBooks. Tenant shall (and shall cause BLD USA to do so as well as to those books, records and accounts by which Gross Revenues subject to the BLD 10 ReddingLease4-30.wpd
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USA Allocations are calculated), for a period of five (5) years following the delivery of each Annual Revenues Statement, including the five (5) year period following the end of the Term, keep and maintain, safe and intact, all of the records, books, and accounts required under Section 4(b)(iv), and shall from time to time, upon request, make these records available to Landlord, Landlord's auditor, representative, or agent for examination at any reasonable time during this period. Landlord shall also have the right to make abstracts fiom the records, to make copies of any or all of the records, to examine any or all contracts, leases, licenses, and concession agreements, and to make copies of any or all contracts, leases, licenses or concession agreements. e. Operation. Tenant shall operate Tenant's business from the Premises as provided in Section 7 with due diligence and efficiency. Tenant will operate the business at Tenant's own expense and at hours consistent with other similar businesses operated by Tenant, which do not conflict with the Environmental Impact Report Mitigation Measures and City Use Permit; provided, however, that this provision shall not apply if the Premises are closed due to inclement weather or Tenant's business is temporarily shut down due to casualty, condemnation, fire, or other causes beyond the reasonable control of Tenant. Nothing in this Agreement shall be deemed to restrict or limit the ability of Tenant or BLD USA to sell "naming rights" to the Sports Park pursuant to a BLD Sponsorship subject to Landlord consent, provided that revenues derived therefrom, including BLD USA Allocations to Tenant (but excluding BLD USA gross revenues not allocated to Tenant as BLD USA Allocations), are included in Gross Revenues. Tenant shall at all times carry a commercially reasonable stock of merchandise, food and beverages, offered for sale at competitive prices, and shall maintain an adequate number of properly trained and skilled personnel for the efficient service of Tenant's customers, Sports Park participants, and the operation of the Sports Park. Although Landlord has no ownership interest in Tenant's business, Landlord is concerned about maximizing Gross Revenues (and, consequently, the Percentage Rent), and Tenant hereby acknowledges that fact.
f. Assignees. Wherever Tenant's business or operations, or Tenant's Gross Revenues, or Tenant's records, books, accounts, and other dataare referred to in this Agreement, they shall be deemed to include, but only to the extent necessary to calculate or verify Gross Revenues, those of any assignee, sublessee, concessionaire, licensee, vending machine operator, or other person, firm, or corporation selling merchandise or services on or from the Premises; provided that this subsection shall not be deemed to imply consent to the operations of any other person, firm, or corporation except in accordance with the provisions of Section 16. g. Percentage Rent Due in Event of Default. If this Agreement is terminated by Landlord because of Tenant's default, and if Tenant becomes liable for any deficiency in rent by way of damages or otherwise, or if at any time during the Term, Tenant, in violation of Section 7, ceases to conduct in the Premises the business referred to in Section 7, then from and after the time of the breach causing this termination, or from and after the time of the cessation of business, the Percentage Rent shall be deemed to be ten percent (10%) of that amount which is equal to the average of the Gross Revenues during the twenty-four (24) months preceding the termination or Packet Pg. 500 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
cessation of business, unless the Termination or cessation occurs within three (3) years of the beginning of the Term, in which event the Percentage Rent shall be $200,000 per year. h. Leaal Currency. All rent payable under this Agreement shall be made in legal currency of the United States. If any two or more payments made by a check, draft, or money order are returned to Landlord due to insufficient hds or otherwise, Landlord shall have the right, at any time after the return, upon written notice to Tenant, to require Tenant to make all subsequent payments in cash, or by cashier's or certified check for aperiod of three (3) Lease Years. Tenant shall pay all rental amounts due under this Agreement at Landlord's address as set forth below, or at such other address as may be designated by Landlord to Tenant in writing.

5. Additional Rent. All Taxes and other costs and expenses payable under this Agreement by Tenant and all damages, costs, and expenses that Landlord incurs or might incur by reason of Tenant's default, shall be deemed additional rent. In the event of Tenant's nonpayment of additional rent, Landlord shall have all the same rights and remedies as Landlord has for the nonpayment of Percentage Rent. The term "rental" and "rent" as used in this Agreement shall mean Percentage Rent and such additional rent.

6. Taxes.
a. Covenant to Pay Taxes. As additional rent, Tenant shall, throughout the Term, commencing effective as of the Term Commencement Date, pay directly to the appropriate taxing authorities all Taxes (as defined in Section 6(b)). All Taxes shall be paid before delinquency and before any fine, interest or penalty shall become due or be imposed by operation of law for their nonpayment. Tenant shall furnish to Landlord prior to the date when any Taxes would become delinquent receipts or other appropriate evidence establishing such payment. b. Definition of Taxes. The term "Taxes" shall include all real property taxes, possessory interest taxes, personal property taxes, charges and assessments (including but not limited to street improvement liens) which are levied, assessed upon or imposed by any governmental authority or political subdivision thereof during or with respect to any portion of the Term hereof with respect to the Premises or any improvements, fixtures, equipment or other property of Tenant, real or personal, located on the Land or used in connection with the operation of the Sports Park, and any tax which shall be levied or assessed in addition to or in lieu of such real or personal property taxes, and any license fees, taxes measured by or imposed upon rents, or other taxes or charges upon Landlord's leasing of the Land or the receipt of rent hereunder. All assessments, taxes, fees, levies and charges imposed by governmental agencies for services such as fire protection, street, sidewalk and road maintenance, refuse removal and other public services generally provided without charge to owners or occupants prior to the adoption of Proposition 13 by the voters of the State of California in the June 1978 election, also shall be deemed included within the definition of "Taxes" for the purposes of this Agreement.

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c. Proration of Tenant's Tax Liability. Tenant's liability to pay Taxes shall be prorated on the basis of a 365-day year to account for any fractional portion of a fiscal tax year included in the Term at its commencement or expiration. Any Taxes payable after the Term Commencement Date (but before the expiration of the Term) but applicable, in whole or in part, to periods prior to the Term Commencement Date, shall be paid by Tenant. Landlord shall, however, pay to Tenant its pro rata share of such Taxes liability for periods prior to the Term Commencement Date at least ten (1 0) days prior to the date such Taxes are due and payable. d. Landlord Covenant. During the Term, Landlord shall not levy, assess or impose on Tenant, or which burden the Land or the Premises, any taxes, license fees, charges or assessments which are not levied, assessed or imposed generally within the City. a. Permitted Uses Tenant agrees to use and occupy the Premises continuously during the Term for the purpose of operating the Sports Park as described in this Agreement and Exhibit 2 of this Agreement and for no other purpose without exception. Use of a part of the Sports Park for a game room, including video games, pool tables and similar entertainment equipment, shall be permitted; provided, however, that any form of gaming, lawfUl or otherwise, will not be permitted on the Premises without the prior written consent of the Landlord. Subject to obtaining and maintaining required or appropriate licenses, permits or other approvals from the Alcoholic Beverage Control Agency or any other governmental jurisdiction having authority, Tenant may engage in the sale of beer, wine and liquor on the Premises.
b. Business Name. During the entire Term, Tenant shall conduct business in the Premises under the name "Big League Dreams Redding Sports Park" in the manner provided herein. c. Permits. Tenant shall at all times during the Term obtain, keep and maintain all licenses and permits required by state and local governmental authorities necessary to operate the Sports Park from the Premises, and comply with each and every term of each such permit, including, but not limited to, the City Use Permit and Environmental Impact Report Mitigation Measures. d. Security. Tenant shall at all times provide such security for the operation of the Premises as shall reasonably be foreseen by Tenant to be prudent to protect the customers, employees, guests, contractors and other invitees of the Premises, and to protect the owners and occupants of neighboring properties from the customers, employees, guests, contractors and other invitees of the Premises.
e. Local Youth Programs. During the Term, Tenant shall endeavor to accommodate on a preferential basis use of the Premises for local organized youth programs. As used herein, the term "local" shall mean and include organized youth programs as to which a majority of the participants are residents of the City of Redding. Use of the Premises by local organized youth programs shall be subject to the normal operating practices and rules of the Packet Pg. 502 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
Premises and of Big League Dreams Sports Parks generally and available times for league play shall be selected by Tenant, subject to, if he or she so requests, the reasonable approval of the City Manager of the Landlord.
a. Tenant. Tenant shall, at Tenant's expense, comply promptly with all applicable statutes, ordinances, rules, regulations, orders, covenants, conditions, and restrictions, and requirements of any governmental authority in effect during the Term, regulating the use or operation by Tenant of the Premises (collectively, the "Statutes") whether those Statutes are now in force or are subsequently enacted. Tenant shall keep and maintain in full force and effect, and in good standing, all permits and licenses required fiom state and local governmental authorities for operation of the Premises. The suspension or termination of any permit or license for a period in excess of thirty (30) days shall be a material breach hereof, but shall first be subject to the cure as provided in Section 17(a)(v). If any bureau, department or official of the state or county government or any other governmental authority (other than the City) having jurisdiction requires or recommends that any non-structural changes, modifications, replacements, alterations, or additional equipment be made or supplied in or to any portion of the Premises by reason of Tenant's use or operation thereof, Tenant shall, at Tenant's cost and expense, make and supply such non-structural changes, modifications, replacements, alterations or additional equipment. Tenant shall not use nor permit the use of the Premises in any manner that will tend to create waste or a nuisance.

The judgement of any court of competent jurisdiction, or the admission by Tenant in a proceeding brought against Tenant by any government entity, that Tenant has violated any Statute shall be conclusive as between Landlord and Tenant and shall constitute grounds for termination of this Agreement by Landlord.
b. Landlord. Landlord, and Landlord's contractors and agents, shall comply with all applicable Statutes of any governmental authority then in effect while developing the Project and constructing the Sports Park Improvements. Landlord represents and warrants that, as of the Term Commencement Date, the Premises will be in compliance with all applicable Statutes of any governmental authority then in effect.

In the event, during the Term, Landlord enacts or issues any new Statutes which would burden or restrict Tenant in the operation of the Sports Park beyond restrictions contained in this Agreement, the Environmental Impact Report Mitigation Measures or the City Use Permit, the City and Tenant shall negotiate in good faith modifications to the Percentage Rent formula or other provisions of this Agreement, the effect of which modifications would place Tenant in a comparable financial position had such Statutes not been enacted or issued. c. Landlord's Use of Parking;. Notwithstanding anything to the contrary, City maintains the right to utilize the Sports Park parking lot for its own use so long as it does not unreasonably interfere with Tenant's activities.

Packet Pg. 503 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
d. Landlord's Use of Land and Non-Competition. Landlord expressly reserves unto itself the right to use the rest of the Land for whatever purpose it may choose so long as such use does not unreasonably interfere with Tenant's use of the Premises hereunder. Landlord shall not compete with Tenant by itself organizing, or by contracting with third parties to organize, softball or baseball leagues or tournaments either on the Land or elsewhere in the City, provided that a) local non-profit youth baseball or youth softball organizations may contract with Landlord to play local youth baseball or softball games (but not tournaments designed to attract out of town teams) at other Landlord owned property and b) Landlord may continue to offer and organize local youth baseball or softball programs currently offered by Landlord as ofthe date ofthis Agreement at other Landlord owned property, but shall not offer or organize any new youth baseball or softball programs during the Term and shall use reasonable efforts to encourage existing youth baseball and softball programs, over a reasonable transition period, to utilize the Sports Park.

9. Landlord's Development of the Sports Park.
a. Landlord's Construction Obligations. The Sports Park Improvements shall be constructed by Landlord, as set forth in the Project Description and the Plans and Specifications, promptly and with due diligence. The quality of construction and the quality of materials used in the construction of the Sports Park Improvements shall be of a first class quality and in accordance with the Project Description and the Plans and Specifications. Landlord shall prosecute Landlord's construction obligations hereunder to completion without undue interruption or delay and in a good, workmanlike manner. Landlord warrants that it will endeavor to cause the Sports Park Improvements to be completed and possession of the Premises delivered to Tenant on or before August 1,2002. In the event the Sports Park Improvements are not completed and possession of the Premises is not delivered to Tenant on or before August 1,2002, Tenant shall have no obligation to pay any rent or other payments or perform any other obligations under this Agreement until the Term Commencement Date. Landlord shall have no liability to Tenant for failure to complete the Sports Park Improvements and deliver possession of the Premises on or before the date hereinbefore described. Tenant shall, however, have the option to terminate this Agreement, without further obligation or liability hereunder, in the event Landlord is unable to complete the Sports Park Improvements and deliver possession of the Premises to Tenant on or before May 1,2003. b. Guarantee of Materials. Landlord shall guarantee all work performed by or for Landlord in the construction of the Sports Park Improvements against defective workmanship and materials for a period of one (1) year from the Term Commencement Date (or such longer period as may be specified in the Plans and Specifications). Landlord, if permitted, shall assign to Tenant (or enforce for Tenant's benefit) any and all guarantees and/or warranties of workmanship and materials which it may receive or which are required in the Plans and Specifications with respect to those portions of the Premises required to be maintained and repaired by Tenant hereunder. Within fifteen (1 5) days after receipt of Landlord's certification of substantial completion of the Premises, Tenant shall supply to Landlord a written punch list (the "Punch List") setting forth any additional corrective work to the Premises which Tenant believes is required to be performed pursuant to the Packet Pg. 504 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
Plans and Specifications. In the event that no Punch List is provided by Tenant within such fifteen (1 5) day period, then Tenant shall be deemed to have accepted the Premises in its entirety subject to Landlord's guarantee obligations described above and any repair and maintenance obligations of Landlord under Section 1 1 (b) below. Landlord shall endeavor to complete or correct the Punch List items promptly and with due diligence.
c. Termination if Financing; Unavailable. Notwithstanding any other provision of this Agreement, if Landlord is in good faith unable to secure adequate construction financing to enable it to award a construction contract, based upon bid prices received by it, Landlord may terminate this Agreement by giving Tenant thirty (30) days' advance written notice.

10. Utilities and Services. Tenant shall make all arrangements for and pay prior to delinquency all utilities and services furnished to or used by it or its licensees or subtenants, including, without limitation, gas, electricity, water, telephone service, communications, cable television, trash collection, sewer, and storm drainage. Landlord shall, as part of its construction obligations, contract for and pay all necessary charges to connect the Sports Park, and all necessary locations within the Sports Park, to, or to access, gas, electrical, water, telephone, communications, cable television lines or sources, sewer, and storm drainage. 1 1. Maintenance and Re~airs.
a. Tenant's Obliprations. Except as provided in Section 1 1 (b) below, throughout the Term, Tenant shall, at Tenant's sole cost and expense maintain the entire Premises in a safe and first class condition and in good repair (damage by casualty described in Section 13 excepted) and in accordance with (i) all applicable Statutes; (ii) the insurance underwriting board or insurance services office having or claiming jurisdiction over the Premises; (iii) all insurance companies insuring all or any part of the Premises; and (iv) standards consistent with other Big League Dreams Sports Parks. Semi-annual meetings shall be held between BLD's Maintenance Supervisor and Landlord's Park Maintenance Foreman to reaffirm that these standards are achieved. b. Landlord's Obligations. For the first five (5) Lease Years, Landlord shall, at Landlord's sole cost and expense make all repairs and replacements required because of latent defects or latent faulty installation or construction by Landlord or as the result of the act, default, omission, or negligence of Landlord, its employees, agents, licensees, contractors, or subcontractors.

Packet Pg. 505 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
c. Furniture, Fixtures & Equipment. Within thirty (30) days of submission of written receipts therefor, the Landlord shall reimburse Tenant for the initial purchase of the FF&E.

All FF&E shall be maintained by Tenant pursuant to Section 1 1 (a).

12. Alterations. Tenant shall not make any alterations or additions to the Premises (other than interior, non-structural alterations costing not more than $25,000 in any one instance) after completion of the Sports Park Improvements without the prior written consent of the City Manager, which consent may be withheld in the sole discretion of the Landlord. If Tenant desires to make any alterations to the Premises as provided in this section, the alterations or additions shall not be commenced in any case until twenty (20) days after the City Manager has received written notice from Tenant stating the date the construction of the alterations or additions is to commence so that the City Manager, on behalf of Landlord, can post and record an appropriate notice of nonresponsibility. Any alterations or additions or changes to the Premises made by Tenant shall be done in accordance with all applicable laws, rules, and regulations, including building codes and prevailing wage requirements if applicable. All such work requiring a building permit shall be performed under the direction and supervision of a competent contractor(s) licensed and in good standing under the laws of the State of California. Tenant shall not permit any mechanic's or materialman's liens to remain against the Premises for work or materials furnished in connection with any such alterations, additions or changes to the Premises. If Tenant shall, in good faith, contest the validity of any such lien, Tenant shall, at its sole expense, defend itself and Landlord against the same and upon Landlord's request, furnish to Landlord a surety bond in an amount equal to one hundred twenty percent (125%) of such contested lien indemnifying Landlord against the liability for same and holding the Premises free from any affect of such lien. All alterations and additions to the Premises shall become the property of Landlord and shall remain on and be surrendered with the Premises at the expiration or sooner termination of this Agreement.

13. Destruction.
a. Partial Destruction; Restoration by Tenant. If the Premises are damaged or destroyed during the Term, the cost of repairing the Premises is less than thirty percent (30%) of the replacement cost of the Sports Park Improvements constituting the Premises and the Term has at least ten (1 0) years remaining, then Tenant shall, promptly restore the Premises to substantially the same condition as they were in immediately before such damage or destruction, in accordance with the original Plans and Specifications (except for changes as may be required by changed building and safety codes, which Tenant shall make at Tenant's sole cost and expense). Such damage or destruction shall not terminate this Agreement. Tenant shall, use commercially reasonable efforts to complete such repairs within one-hundred eighty (1 80) days from the date of the casualty. b. Ma-ior Damage or Destruction; Tenant's Riaht to Terminate. If the Premises are damaged or destroyed by flood or earthquake (or other casualty not covered by the all risk Packet Pg. 506 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
property insurance required to be maintained by Tenant) during the Term and the cost of repairing the Premises is thirty percent (30%) or more of the replacement cost of the Sports Park Improvements constituting the Premises, then Tenant shall have the option of either repairing and reconstructing the Premises or of terminating this Agreement. Notwithstanding the foregoing, provided that damage or destruction to the Premises is due to a cause covered by the all risk property insurance required by this Agreement or by insurance otherwise maintained by Tenant, then Tenant shall restore the Premises to substantially the same condition they were in immediately before such damage or destruction, in accordance with the original Plans and Specifications (except for any changes that may be required by changed building and safety codes, which Tenant shall make at Tenant's sole cost and expense) to the extent of insurance proceeds received; provided, however, that (1) if the cost of the restoration of the Sports Park Improvements shall exceed the insurance proceeds available to Tenant to perform such restoration by an amount in excess of $100,000, or (2) there is damage to or destruction of the Premises and the governmental restrictions then in effect with respect to the Premises prohibit construction of economically viable replacement improvements with respect to a use which Tenant has a right to make under this Agreement, or (3) such destruction occurs during the last five (5) years of the Initial Term or during any extension term of this Agreement, then Tenant shall have the right to terminate this Agreement as hereinafter set forth.

To exercise the right of termination described in this subsection (b), Tenant must comply with all of the following conditions:

1. Give Landlord notice of termination within thirty (30) days after the damage or destruction, specifying the date of termination which shall be not less than sixty (60) days nor more than one hundred twenty (120) days after the date such notice of termination is given; . .

11. Prior to the termination date, cure any defaults on Tenant's part under this Agreement;
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111. Continue to make all payments when due (including without limitation the prorated portion of any additional rent, including any rent due under Section 4(g), becoming due after Tenant has given the notice of termination but prior to the date of termination), if any, as required by the provisions of this Agreement until the date of termination; iv. Prior to the termination date, pay in full any outstanding indebtedness incurred by Tenant and secured by an encumbrance or encumbrances on the leasehold, or alternatively, deliver to Landlord the written consent of the holders of all such encumbrances to the early termination of this Agreement and extinguishment of their liens; Packet Pg. 507 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
v. Prior to the termination date, cause to be discharged all liens and encumbrances encumbering the Premises or Tenant's leasehold interest resulting from any act or omission of Tenant;
vi. On or before the termination date, deliver possession of the Premises to Landlord, quitclaim all right, title and interest in the Premises to Landlord and cease to do business on the Premises, and vacate the Premises;
vii. Prior to the termination date, effectively relinquish, assign, and deliver to Landlord all insurance proceeds resulting from the casualty.

In the event of any such termination, any additional rent paid in advance shall be prorated through the date the Agreement is terminated.
c. Abatement or Reduction of Rent. In case of any damage or destruction where this Agreement is not terminated, there shall be no abatement or reduction of Percentage Rent or additional rent; however, during the period of reconstruction, Tenant may continue to conduct business from the Premises from temporary facilities or temporary structures subject to compliance with local building and safety codes or other applicable municipal codes. Tenant shall use commercially reasonable efforts to complete such reconstruction and re-open the Premises for business within a reasonable time, not to exceed ten (10) months in the aggregate. d. Insurance Proceeds. If Tenant is obligated or elects to restore the Premises pursuant to this section, the proceeds of any insurance maintained under this Agreement shall be disbursed pursuant to a customary construction disbursement system or service for payment of costs and expenses of repair. If the insurance proceeds are insufficient to cover the cost of repair, and Tenant is nonetheless obligated to repair under Section 13(b), then Tenant shall deposit the amount of the deficiency with Landlord, and such funds shall be disbursed first, and the balance of the construction costs shall be disbursed from the insurance proceeds by Landlord.

14. Insurance and Indemnity.
a. Liability Insurance. Effective as of the Term Commencement Date, Tenant shall procure at its sole cost and expense, and thereafter keep in effect at all times until the end of the Term, commercial general liability insurance which shall include broad form contractual liability insurance coverage insuring all of Tenant's indemnity obligations under this Agreement. Such coverage shall have a minimum combined single limit of liability of at least $2,000,000. If commercial general liability insurance or other form with a general aggregate limit is used, the general aggregate limit shall be twice the required occurrence limit. Tenant's public liability insurance shall include dram shop liability insurance or liquor liability insurance. All of Tenant's Packet Pg. 508 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
public liability insurance policies shall be written to apply to all bodily injury, property damage, personal injury and other covered loss, however occasioned, occurring during the policy term, and shall be endorsed to provide that such coverage shall be primary and that any insurance maintained by Landlord shall be excess insurance only. Tenant may satisfy the requirements of this subsection (a) by having BLD USA obtain a master policy of liability insurance applicable to multiple Big League Dreams Sports Parks which shall, by endorsement, specifically name the Sports Park as an insured and comply with other requirements of this Section 14 applicable to such insurance. b. Workers' Compensation Insurance. Tenant and Tenant's sublessees and concessionaires shall maintain workers' compensation insurance in accordance with California law and an employer's liability insurance endorsement with customary limits. c. Propertv Insurance.

1. All Risk Coverage. Tenant shall at Tenant's expense obtain and keep in force during the Term of this Agreement (commencing as of the Term Commencement Date) a policy of insurance covering loss or damage to the Premises, all FF&E, and other personal property of Tenant and Landlord, in the amount of the full replacement value thereof, as the same may exist from time to time, against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, and special extended perils ("all risk," as that term is known in the insurance industry). If such insurance coverage has a deductible clause, the deductible amount shall not exceed $20,000 per occurrence. Tenant shall be liable for such deductible amount. Tenant shall obtain such endorsements as are recommended by Landlord's risk manager, including, without limitation, an endorsement for changes in building codes, provided such endorsements may be obtained on commercially reasonable terms. Landlord shall be the loss payee on such policy.

Landlord shall receive and retain all insurance proceeds to the extent they are not used to rebuild the Premises following an insured casualty.
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11. Replacement Value. The "full replacement value" of the property to be insured under this section shall be determined by the company issuing the insurance policy at the time the policy is initially obtained. Not more frequently than once every two (2) years, either party shall have the right to notify the other party that it elects to have the replacement value redetermined by an insurance company. The redetermination shall be made promptly and in accordance with the rules and practices of the insurance company, and each party shall be promptly notified of the results by the company. The insurance policy shall be adjusted according to the redetermination. d. Insurance Policies.

1. Coverane Re-Evaluation. Not more frequently than once every ten (1 0) years, if in the reasonable opinion of Landlord the amount or type of any insurance at that time is not adequate or not provided for herein, Tenant shall either acquire or increase the insurance coverage as required by Landlord provided Tenant may obtain such increased coverage on commercially reasonable terms.

Packet Pg. 509 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
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11. Policy and Companv Requirements. Tenant shall deliver to Landlord copies of policies of such insurance or certificates with attached original endorsements evidencing the existence and amounts of such insurance with loss payable clauses as required by this Section

14. Tenant shall, at least thirty (30) days prior to the expiration of such policies, furnish Landlord with renewals or binders thereof. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A-:VII and licensed to do business in the State of California. All policies of insurance must (other than the property insurance, which shall name the Landlord as the loss payee) be endorsed to contain the following:
(1) The Landlord, its members, council members, officers, employees, volunteers, and any additional parties designated by the Landlord, as additional insureds.

The coverage shall contain no special limitations of the scope of protection afforded the Landlord. (2) The insurance coverage shall be primary insurance as respects the Landlord, its members, council members, officers, employees, agents, and any additional parties designated by the Landlord. Any insurance or self-insurance maintained by the Landlord, its members, council members, officers, employees and volunteers, and any additional parties designated by the Landlord shall be excess of the insurance and shall not contribute with it. (3) No such policy shall be cancelable or subject to reduction of coverage or other modification expect after thirty (30) days prior written notice to Landlord. (4) As respects workers7 compensation insurance, the policy shall be endorsed with a waiver of subrogation clause for Landlord, its respective members, board members, officers, employees, and volunteers.
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111. Policv Compliance. Tenant shall not use the Premises in any manner, even if the use is for the purposes permitted herein, that will result in the cancellation of any insurance required under this Agreement. Tenant further agrees not to keep on the Premises or permit to be kept, used, or sold thereon, anything prohibited by any fire or other insurance policy covering the Premises.
iv. Failure to Obtain Insurance. If, after written notice and a fifteen (1 5) day opportunity to cure, Tenant shall fail to obtain any insurance required under this Agreement, Landlord may, at its election, obtain such insurance and Tenant shall, as additional rent, reimburse Landlord for the cost thereof plus a five percent (5%) handling charge, within five (5) days following demand therefor. If Tenant fails or refuses to maintain insurance as required hereunder, or fails to provide the proof of insurance, Landlord shall, subject to the notice and cure provisions of Section 17(a)(v), have the right to declare this Agreement in default, and Landlord shall be entitled to exercise all legal remedies for breach of this Agreement. v. relations hi^ to Indemnities. All insurance required to be provided hereunder is in addition to, and not in lieu of, the indemnity provisions of Section 14(f) hereof. The Packet Pg. 510 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
procuring of such required policies of insurance shall not be construed to limit Tenant's liability hereunder, nor to fulfill the indemnification provisions and requirements of this Agreement. e. Waiver of Subrogation. Tenant and Landlord each hereby release and relieve each other, and waive their right of recovery against the other, for loss or damage arising out of or incident to the perils insured against under Section 14(c), which perils occur in, on or about the Premises, whether due to the negligence of Landlord, or Tenant or their agents, employees, contractors andlor invitees, but only to the extent of insurance coverage. Tenant shall, upon obtaining the policies of insurance required hereunder, give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Agreement and obtain the insurance carrier's written consent thereto.

F. Indemnity. Tenant shall, commencing with the Term Commencement Date, indemnify, defend, protect, and hold harmless Landlord, the City and their respective members, employees, agents and contractors (collectively the "Indemnitees") from and against any and all claims, losses, proceedings, damages, causes of action, liability, costs and expenses (including reasonable attorneys' fees), arising from or in connection with, or caused by (i) any act, omission or negligence of Tenant or any sublessee of Tenant, or their respective contractors, licensees, invitees, agents, servants or employees, wheresoever the same may occur; (ii) any use of the Premises, or any accident, injury, death or damage to any person or property occurring in, on or about the Premises, or any part thereof, or fiom the conduct of Tenant's business or from any activity, work or thing done, permitted or suffered by Tenant or its sublessees, contractors, employees, or invitees, in or about the Premises, or elsewhere (other than when arising as a result of defective construction or workmanship by Landlord or its contractors or agents, or gross negligence or intentional misconduct of an Indernnitee); and (iii) any breach or default in the performance of any obligations on Tenant's part to be performed under the terms of this Agreement, or arising from any negligence of Tenant, or any such claim or any action or proceeding brought thereon; and in case any action or proceeding be brought against an Indemnitee by reason of any such claim, Tenant upon notice from Landlord shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord. Tenant shall have no duty to defend or indemnify Landlord or any other Indemnitee fiom any Legal Challenge. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property or injury to person in, upon or about the Premises arising from any cause other than defective construction or workmanship by Landlord or its contractors or agents, gross negligence or intentional misconduct of an Indemnitee, or Hazardous Materials existing on the Land prior to the Term Commencement Date as provided in Section 30 and Tenant hereby waives all claims in respect thereof against Landlord. These provisions are in addition to, and not in lieu of, the insurance required under this Section 14.

15. Condemnation.
a. Definitions.

Packet Pg. 511 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease

1. "Condemnation" means (A) the exercise of any governmental power, whether by legal proceedings or otherwise, by a Condemnor and (B) a voluntary sale or transfer by Landlord to any Condemnor, either under threat of condemnation or while legal proceedings for condemnation are pending.
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11. "Date of Taking" means the date the Condemnor has the right to possession of the property being condemned.
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111. "Award' means all compensation, sums, or anythmg ofvalue awarded, paid, or received on a total or partial condemnation.
iv. "Condemner" means any public or quasi-public authority, or private corporation or individual, having the power of condemnation or eminent domain. b. ke;hts and Obligations Governed bv Lease. If during the Term there is any taking of all or any part of the Premises or any interest in this Agreement by Condemnation, the rights and obligations of the parties shall be determined pursuant to this section. Each party waives the provisions of California Code of Civil Procedure Section 1265.130 allowing either party to petition the Superior Court to terminate this Agreement in the event of a partial taking of the Premises.
c. Total Taking. If the Premises are totally taken by Condemnation, this Agreement shall terminate on the Date of Taking.
d. Partial Taking. If any portion less than all of the Premises is taken by Condemnation, this Agreement shall remain in effect, except that Tenant can elect to terminate this Agreement if, in the reasonable judgment of Tenant, the portion of the Premises not so taken cannot be so repaired or reconstructed, taking into consideration the amount of the award available for repair, so as to be suitable for Tenant's continued use of the Premises for the same use as the Premises are being used immediately prior to the taking and the remaining Premises would not be economically feasibly usable by Tenant. If Tenant elects to terminate this Agreement, Tenant must exercise its right to terminate by giving notice to Landlord within thirty (30) days after the Date of Taking. If Tenant elects to terminate this Agreement, Tenant also shall notify Landlord of the effective date of the termination, which effective date shall not be later than ninety (90) days after Tenant has notified Landlord of its election to terminate. If Tenant does not terminate this Agreement within the ninety (90) day period, this Agreement shall continue in full force and effect.

Packet Pg. 512 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
e. Restoration of Premises. If there is a partial taking of the Premises and this Agreement remains in full force and effect pursuant to Section 15(d), Tenant shall commence all necessary restoration as promptly as reasonably practicable under the circumstances but in all events within thirty (30) days after receipt of the Award, and shall thereafter diligently pursue such restoration work to completion.
f. Temporaw Taking. On any taking of the temporary use of all or any part or parts of the Premises for a period, or of any estate less than a fee, ending on or before the expiration date of the Term, the Term shall not be reduced, extended, or affected in any way, and Tenant shall be entitled to any Award for the use or estate taken. If a result of the temporary taking is to necessitate expenditures for changes, repairs, alterations, modifications, or reconstruction of the Sports Park Improvements, the Award shall be paid to Tenant, and Tenant shall commence all necessary changes, repairs, alterations, modifications or reconstruction of the Sports Park Improvements as promptly as reasonably practicable under the circumstances but in all events within thirty (30) days after receipt of the Award, and shall thereafter diligently pursue such restoration work to completion. At the completion of the work and the discharge of the Premises from all liens and claims, Tenant shall be entitled to any surplus and shall be liable for any deficit. If any such taking is for a period extending beyond the expiration date of the Term, the taking shall be treated under the foregoing provisions for total and partial takings, depending upon whether the temporary taking is of all or only a part of the Premises.
g. Avvlication of Award. No Award for any partial or entire taking shall be apportioned. Awards for partial or temporary takings, where the Lease is not terminated, shall be applied by Tenant to restoration of the Premises as provided above. Tenant hereby assigns to Landlord any Award for a total taking which may be made, together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof; provided, however, that nothing contained herein shall be deemed to give Landlord any interest in or require Tenant to assign to Landlord any Award made to Tenant for the unamortized value of any additions or improvements on the Premises constructed by Tenant in accordance with this Agreement (amortized on a straight line basis over the remainder of the Term of this Agreement from the Date of Taking), the taking of personal property and fixtures belonging to Tenant and removable by Tenant at the expiration of the Term hereof, as provided hereunder, or for the interruption of, damage to, or loss of Tenant's business and goodwill, or for relocation expenses recoverable against the condemning authority, or in the event of a partial taking, the cost of restoring the Premises to a usable condition.

16. Assipnment, Sublettinp and Encumbering.
a. Prohibition Against Assignment. Subletting, and Encurnberinq. Tenant shall have the right to assign this Agreement to an affiliated entity as to which a Controlling Percentage is owned by BLD USA. Tenant shall not assign, transfer, or encumber all or any portion of its interest in this Agreement or in the Premises, or sublease all or any part of the Premises, or allow Packet Pg. 513 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
any other person or entity (except Tenant's authorized representatives) to occupy or use all or any part of the Premises, without Landlord's prior written consent, which consent shall not be unreasonably withheld, delayed or conditioned. No licensees, concessionaires or sublessees of all or part of the Premises shall, without the prior written approval of Landlord, be Affiliates of Tenant.

In the event Landlord approves any assignment or subletting of the Premises, Landlord shall cooperate with Tenant in effectuating the reasonable requirements of prospective assignees or sublessors to complete any such transaction. In no event is Tenant or any subtenant authorized to encumber the Premises or the FF&E provided by Landlord without the advance written approval of Landlord, which approval may be granted or withheld by Landlord in its sole discretion.

1. A~proval Procedure for Assignments andsubleases. Tenant shall first notify Landlord at least forty-five (45) days prior to the proposed effective date of any assignment or sublease, in writing, of its desire to do so and shall submit in writing to Landlord (1) the name of the proposed subtenant or assignee, (2) the terms and conditions of the proposed sublease or assignment (including a copy of the written agreement for same,) (3) financial statements for the two most recent completed fiscal years of the proposed subtenant or assignee, and (4) a bank reference.

Thereafter, Tenant shall furnish such supplemental information as Landlord may reasonably request concerning the proposed subtenant or assignee. At any time within thirty (30) days after Landlord's receipt of the information specified above, Landlord may by written notice to Tenant elect to (1) consent to the sublease or assignment, or (2) disapprove of the sublease or assignment in Landlord's reasonable discretion. Such grounds may include, without limitation, a possible material adverse effect upon the reputation of the Project from the nature of the subtenant or assignee; a reputation for financial reliability on the part of the proposed subtenant or assignee which is unsatisfactory in the sole judgment of Landlord; insufficient experience of the subtenant or assignee to operate the Sports Park; likely adverse impact on the Gross Revenues of the Sports Park; or inexperience in performance of Tenant's other obligations under this Agreement. If Landlord consents to the sublease or assignment (or fails to respond to Tenant's request) within the forty-five (45) day period, Tenant may thereafter enter into such assignment or sublease of the Premises, upon the terms and conditions and as of the effective date set forth in the information furnished by Tenant to Landlord. . .

11. Executed Document CODV. Notwithstanding Landlord having granted its consent to any assignment or subleasing, prior to the effective date of any assignment or the commencement date of any sublease, Tenant shall furnish Landlord with a copy of the fully executed sublease or assignment agreement.
. . .
111. Minimum Term. No sublease of the Premises or portion thereof, or assignment of this Agreement, shall be for a period of less than one (1) year, nor shall any sublease extend beyond the expiration date of the Term of this Agreement. iv. Assumption. Each permitted assignee or transferee shall assume and be deemed to have assumed, and each sublessee shall be bound by, this Agreement. In the case of Packet Pg. 514 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
an assignment of this Agreement where Landlord's approval is required and Landlord so consents in writing, Landlord shall not release Tenant from any further obligations arising under this Agreement after the date of the assignment unless such assignment specifically provides for such a release. No assignment shall be binding on Landlord unless such assignee or Tenant shall deliver to Landlord a counterpart of such assignment which contains a covenant of assumption by the assignee, but the failure or refusal of the assignee to execute such instrument of assumption shall not release or discharge the assignee from its liability as set forth above. b. Additional Provisions. No consent by Landlord to any assignment, encumbrance, or sublease shall constitute a waiver of the provisions of this section. Tenant shall not make any modifications to an approved sublease without Landlord's prior written consent. For the purposes hereof, an "encumbrance" shall mean a mortgage, deed of trust, land sale contract, lease or other financing device. Any attempted assignment, encumbrance, or Lease, if not approved by Landlord in advance pursuant to this Section 16, shall be voidable by Landlord and, at Landlord's election, shall, subject to the notice and cure provisions of Section 17(a)(v), constitute a default hereunder. For purposes of this Agreement, the creation of any concession agreement or similar agreement for the operation of the food and beverage facilities at the Sports Park is also considered a sublease.

17. Default.
a. Tenant's Default. The occurrence of any of the following shall constitute a default by Tenant:

1. Failure to Pay Rent. Failure to pay rent (whether Percentage Rent, or any other rent due to Landlord) or any other additional payment required to be made by Tenant hereunder as and when due, where such failure continues for ten (1 0) days after delivery by Landlord to Tenant of written notice of such failure.
. .

11. Failure to Pay Taxes. Failure to pay any Taxes on a timely basis, or the failure to provide any insurance required hereunder, where such failure continues for fifteen (1 5) days after delivery by Landlord of written notice of such failure to Tenant. ... in. Surrender. Abandonment or surrender of the Premises or the leasehold estate by Tenant.
iv. Default Under Related Agreements. Tenant's default under any Related Agreement, where such default is not cured by Tenant (or BLD USA, as applicable) within the cure period applicable to such default, if any, under such agreements.

Packet Pg. 515 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
v. Default Under this Anreement. Failure to perform any other covenant or provision of this Agreement, if the failure to perform is not cured within thirty (30) days after delivery by Landlord to Tenant of written notice. If the failure to perform cannot reasonably be cured within thirty (30) days, Tenant shall not be in default of this Agreement if Tenant commences to cure the failure to perform within the thirty (30) day period and thereafter diligently and in good faith prosecutes the cure to completion.
vi. Attachment. The subjection of any right or interest of Tenant to attachment, execution, or other levy, or to seizure under legal process, if not released within sixty (60) days after written notice from Landlord to Tenant. vii. Insolvencv. An assignment by Tenant for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Tenant under any law for the purpose of adjudicating Tenant a bankrupt; or for extending time for payment, adjustment, or satisfaction of Tenant's liabilities; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency; unless the assignment or proceeding, and all consequent orders, adjudications, custodies, and supervision are dismissed, vacated, or otherwise permanently stayed or terminated within sixty (60) days after the assignment, filing, or other initial event. . . * viii. Receiversh<~. The appointment of a receiver, unless such receivershp is terminated within sixty (60) days after the appointment of the receiver, to take possession of Tenant's interest in the Premises or of Tenant's interest in the leasehold estate or of Tenant's operations on the Premises for any reason, including but not limited to, an assignment for the benefit of creditors or voluntary or involuntary bankruptcy, but not including receivership (A) pursuant to a permitted first leasehold encumbrance, or (B) instituted by Landlord, the event of default being not the appointment of a receiver at Landlord's instance but the event justifying the receivership. b. Landlord's Remedies.

1. Cumulative Nature of Remedies. If any default by Tenant shall continue uncured, following notice of default as required by this Agreement, for the period, if any, applicable to the default under the applicable provision of this Agreement, Landlord shall have the remedies described in this subsection (b) in addition to all other rights and remedies provided by law or equity, to which Landlord may resort cumulatively or in the alternative. . .

11. Termination. Landlord may at Landlord's election terminate this Agreement by giving Tenant written notice of termination. In the event Landlord terminates this Agreement, Landlord may recover possession of the Premises (which Tenant shall surrender and vacate upon demand) and remove all persons and property therefrom. Landlord shall be entitled to recover as damages all of the following:

Packet Pg. 516 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
(1) The worth at the time of the award of any unpaid rent or other charges which have been earned at the time of termination; (2) The worth at the time of the award of the amount by which the unpaid rent and other charges which would have been earned after termination until the time of the award exceeds the amount of the loss of such rental or other charges that Tenant proves could have been reasonably avoided;
(3) The worth at the time of the award of the amount by which the unpaid rent and other charges for the balance of the Term after the time of the award exceeds the amount of the loss of such rental and other charges that Tenant proves could have been reasonably avoided; and
(4) Any other amount necessary to compensate Landlord for the detriment proximately caused by Tenant's failure to perform its obligations under this Agreement or which in the ordinary course of things would be likely to result therefrom. iii. Worth Defined. As used in subsections (1) and (2) above, the "worth at the time of the award" shall be computed by allowing interest at the rate of ten percent (1 0%) per annurn. As used in subsection (3) above, the "worth at the time of the award" shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award.
iv. Continuation of the Lease. Even though Tenant has breached this Agreement and abandoned the Premises, at Landlord's option this Agreement shall continue in effect for so long as Landlord does not terminate Tenant's right to possession. Landlord may enforce all of its rights and remedies hereunder, including the right to recover rent as it comes due under this Agreement. In such event, Landlord will permit Tenant to sublet the Premises or to assign its interest in this Agreement, or both, with the consent of Landlord, which consent will not unreasonably be withheld provided the proposed assignee or sublessee is reasonably satisfactory to Landlord as to credit and reputation and will occupy the Premises for the same purposes specified herein, and provided that Tenant shall cure all defaults to Landlord as a condition precedent to the effectiveness of Landlord's consent. For purposes of this subsection, the following shall not constitute a termination of Tenant's right to possession: (i) acts of maintenance or preservation or efforts to relet the Premises; or (ii) the appointment of a receiver under the initiative of Landlord to protect Landlord's interest under this Agreement.
v. Use of Tenant's Personal Property. Landlord may at Landlord's election use Tenant's personal property and trade fixtures located on, about or appurtenant to the Premises or any of such property and fixtures without compensation and without liability for use or damage, or store them for the account and at the cost of Tenant. The election of one remedy for any Packet Pg. 517 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
one item shall not foreclose an election of any other remedy for another item or for the same item at a later time.
vi. Assignment ofsubrents. Tenant assigns to Landlord all subrents and other sums falling due fiom subtenants, licensees, and concessionaires (herein collectively called "subtenants") during any period in which Landlord has the right under this Agreement, whether exercised or not, to reenter the Premises for Tenant's default. Tenant shall not have any right to such sums during that period. This assignment is subject and subordinate to any and all assignments of the same subrents and other sums to the lender under a permitted first leasehold encumbrance.

Landlord may at Landlord's election reenter the Premises with or without process of law, without terminating this Agreement, and either or both collect these sums or bring action for the recovery of the sums directly from such obligors. Landlord shall receive and collect all subrents and proceeds from reletting, applying them: first, to the payment ofreasonable expenses (including attorneys' fees or brokers' commissions or both) paid or incurred by or on behalf of Landlord in recovering possession, placing the Premises in good condition, and preparing or altering the Premises for reletting; second, to the reasonable expense of securing new subtenants; third, to the fulfillment of Tenant's covenants to the end of the Term; and fourth, to Landlord's uses and purposes. Tenant shall nevertheless pay to Landlord on the due dates specified in this Agreement the equivalent of all sums required of Tenant under this Agreement, plus Landlord's expenses, less the proceeds of the sums assigned and actually collected under this provision.
c. Late Charge. Tenant hereby acknowledges that late payment by Tenant to Landlord of rent and other charges due under this Agreement will cause Landlord to incur costs not contemplated by this Agreement, the exact amount of which will be extremely difficult to ascertain.

Such costs include, but are not limited to processing and accounting charges, and late charges which may be imposed on Landlord by the terms of any mortgage or trust deed covering the Premises, or bond issues of Landlord. Accordingly, if any delinquent installment of rent or any other charge due from Tenant is not received by Landlord or Landlord's designee within ten (10) days after written demand for payment shall have been delivered by Landlord to Tenant, then, at Landlord's election and upon Landlord's demand, Tenant shall pay to Landlord a late charge equal to ten percent (1 0%) of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of the late payment by Tenant. No late charge may be imposed more than once for the same late rental payment. Acceptance of such late charge by Landlord shall in no event constitute a waiver of Tenant's default with respect to such overdue amount. If Tenant fails to pay any two installments of Percentage Rent in the time (including applicable notice and cure periods) required by this Agreement, then Landlord also shall have the right, for a period of three (3) Lease Years, to require that all future Percentage Rent be payable monthly rather than quarterly. Landlord shall give Tenant written notice of such election at least five (5) days before the next monthly payment shall be due. d. Landlord's Default. The occurrence of the following shall constitute a default by Landlord: Landlord's failure to perform any covenant or provision of this Agreement or of any Related Agreement, if the failure to perform is not cured within thirty (30) days after delivery by Packet Pg. 518 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
Tenant to Landlord of written notice specifying the specific nature of the alleged default. If the failure to perform cannot reasonably be cured within thirty (30) days, Landlord shall not be in default of this Agreement or of any Related Agreement if Landlord commences to cure the failure to perform within the thirty (30) day period and thereafter diligently and in good faith prosecutes the cure to completion.
e. Tenant's Remedies. If any default by Landlord shall continue uncured, following notice of default as required by this Agreement, for the period specified in subsection (d) above, Tenant may terminate this Agreement andlor pursue any and all other rights and remedies available at law or in equity under the laws of the State of California.

18. Landlord's Entrv on Premises. Landlord and its authorized representatives shall have the right to enter the Premises at all reasonable times, upon giving at least twenty-four (24) hours prior notice, for any of the following purposes:
a. Verifv Condition To determine whether the Premises are in the condition required by this Agreement and whether Tenant is complying with its obligations under this Agreement;
b. Post Notices To serve, post, or keep posted any notices required or allowed under the provisions of this Agreement;
c. Show Property To show the Premises for any reasonable purpose at any time during the Term; and
d. Business Purposes To carry out any building or property management business purpose in or about the Premises.

Landlord shall not be liable in any manner for any inconvenience, disturbance, loss of business, nuisance, or other damage arising out of Landlord's entry on the Premises as provided in this section, except damage resulting from the acts or omissions of Landlord or its authorized representatives. Tenant shall not be entitled to an abatement or reduction of rent if Landlord exercises any rights reserved in this section. Landlord shall conduct its activities on the Premises as allowed in this section in a manner that reasonably attempts to minimize any inconvenience, annoyance, or disturbance to Tenant's business operations.

19. Notices. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party shall be in writing and shall be given to the addresses set forth below, and shall be deemed delivered three (3) days after deposit into the United States mail, postage prepaid, by registered or certified mail, return receipt requested. Unless notice of a different address has been given in accordance with this section, all such notices shall be addressed as follows:

Packet Pg. 519 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
If to Landlord, to: City of Redding
777 Cypress Avenue
Redding, California 9600 1
Attention: Mike Warren, City Manager
With a copy to:

If to Tenant, to:

With a copy to:

Redding City Attorney
777 Cypress Avenue
Redding, California 9600 1
Attention: Dave Tranberg, Assistant City Attorney
Big League Dreams Redding, LLC
33-700 Date Palm Drive
Cathedral City, California 92234
Attention: Richard Odekirk
Big League Dreams USA, LLC
10550 Galena Street
Mira Loma, California 9 1752
Attention: Scott Parks LeTellier

20. Attornevs' Fees.
a. If Landlord becomes a party to any litigation brought by any third party concerning this Agreement or the Premises as to which Landlord is entitled to indemnification from Tenant, then Tenant shall be liable for actual attorney's fees and court costs incurred by Landlord in the litigation.
b. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to have and recover fiom the losing party its reasonable attorneys' fees and costs of suit.

21. Liti~ation Concerning Validity of this Apreement. In the event any Legal Challenge is undertaken, Landlord shall have the right, exercisable not later than ninety (90) days from the date of this Agreement, to terminate this Agreement by thirty (30) days written notice to Tenant without any further liability to Tenant whatsoever; provided, however, Landlord shall not terminate this Agreement if Tenant shall agree in writing to indemnify, defend, and hold harmless Landlord for all costs and expenses incurred by Landlord on account of such Legal Challenge, and shall deposit with Landlord reasonable cash or cash equivalent security therefor. Such defense shall be undertaken by legal counsel selected and paid for by Tenant, subject to Landlord's reasonable approval. Landlord shall have no liability to Tenant if this Agreement is terminated by reason of such Legal Challenge.

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22. Estoppel Certificates. At any time and from time to time, within thirty (30) days after notice of request by either party, the other party shall execute, acknowledge, and deliver to the requesting party, or to such other recipient as the notice shall direct, a statement certifying that this Agreement is unmodified and in full force and effect; or, if there have been modifications, that it is in full force and effect as modified in the manner specified in the statement and acknowledging that there are no uncured defaults or failures to perform any covenant or provision of this Agreement on the part of the requesting party or specifying any such defaults or failures which are claimed to exist.

The statement shall also state the dates to which the rent and any other charges have been paid in advance. The statement shall be such that it can be relied on by any auditor, creditor, commercial banker, and investment banker of either party and by any prospective lender with respect to the Premises or all or any part or parts of Tenant's or Landlord's interests under this Agreement. Either party's failure to execute, acknowledge, and deliver, on request, the certified statement described above within the specified time shall constitute a breach of this Agreement. If Tenant fails to deliver the certificate within ten (1 0) days, Tenant constitutes and appoints Landlord as its special attorneyin-fact to execute and deliver the certificate to a third party, which appointment is irrevocable and is hereby coupled with an interest.

23. Subordination. This Agreement is subject and subordinate to all prior leasesand underlying liens, mortgages and deeds of trust which now affect the Premises or the Land, and to all renewals, modifications, consolidations, replacements, and extensions thereof. If the holder or holders of any such mortgage or deed of trust shall advise Landlord that they desire or require this Agreement to be prior and superior thereto, upon written request of Landlord to Tenant, Tenant agrees promptly to execute, acknowledge, and deliver any and all docurnents or instruments which are reasonably necessary or desirable for purposes thereof. Landlord shall have the right to cause this Agreement to be and become and remain subject and subordinate to future and further ground or underlying financing leases, mortgages or deeds of trust which may hereafter be executed covering the Premises and the Land, or any renewals, modifications, consolidations, replacements or extensions thereof, for the full amount of all advances made or to be made thereunder and without regard to the time or character of such advances, together with interest thereon and subject to all the terms and provisions thereof. Tenant agrees, within thirty (30) days after Landlord's written requests therefor, to execute, acknowledge, and deliver any and all docurnents or instruments requested by Landlord, or that are necessary or proper to assure the subordination of this Agreement to any such mortgages, deeds oftrust, or leasehold estates; provided, however, that the foregoing provisions with respect to such election of subordination by Landlord shall not be effective unless the owner or holder of any such mortgage, deed of trust, or leasehold estate shall execute with Tenant a nondisturbance agreement under which such owner, holder, or lessor shall agree, in the event of termination of such leasehold estate or upon the foreclosure of any such mortgage or deed of trust, that Tenant's quiet enjoyment of the Premises will not be disturbed so long as Tenant pays rent and Packet Pg. 521 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
observes and perform all of the provisions of this Agreement to be observed and performed by Tenant. Notwithstanding anything to the contrary set forth in this section, Tenant hereby attorns and agrees to attorn to (at the option of) any person, firm, or corporation purchasing or otherwise acquiring the Premises at any sale or other proceeding or pursuant to the exercise of any other rights, powers, or remedies under such mortgages, or deeds of trust, or ground or underlying leases, as if such person, firm, or corporation had been named as Landlord herein.

24. Sale or Transfer bv Landlord. In the event of any transfer or transfers of Landlord's interest in the Premises, other than a transfer for security purposes only, the transferor shall automatically be relieved of any and all obligations and liabilities on the part of the Landlord accruing from and after the date of such transfer; provided, however, that any funds in the hands of Landlord in which Tenant has an interest, at the time of such transfer, shall be turned over to the transferee and upon such transfer, Landlord shall be discharged from any further liability with reference to such funds. The covenants and obligations of Landlord contained in this Agreement shall be binding upon Landlord, its successors and assigns only during their respective periods of ownership.

25. Surrender of Premises. At the expiration or earlier termination of the Term, Tenant shall surrender to Landlord the possession of the Premises. Surrender or removal of improvements, fixtures and trade fixtures shall be as directed in the provisions of this Agreement on ownership of improvements, fixtures and trade fixtures at expiration or termination of this Agreement. Except as provided in Section 13 hereof to the contrary, Tenant shall leave the surrendered property and any other property in good and broom clean condition. All personal property that Tenant is not required to surrender but that Tenant does abandon shall, at Landlord's election, become Landlord's property at expiration or the sooner termination of this Agreement.

26. Form of Nondiscrimination and Nonse~regation Clauses. The Tenant herein covenants by and for itself, its successors and assigns, and all persons claiming under or through it, and ths Agreement is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Premises nor shall the Tenant itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the Premises.

27. Holding Over. If Tenant remains in possession of the Premises or any part thereof after the expiration or termination of the Term of this Agreement, such occupancy shall be a tenancy from month to month upon all the provisions of this Agreement pertaining to the obligations of Packet Pg. 522 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
Tenant, except that the Percentage Rent shall be increased to ten percent (10%) of the Gross Revenues and the Percentage Rent shall be payable in arrears on a monthly basis, as otherwise set forth in Section 4.

28. Representations, Warranties and Acknowledyments. Tenant makes the following representations, warranties and acknowledgments as of the date of this Agreement and agrees that such representations, warranties and acknowledgments shall survive and continue thereafter:
a. Status. Tenant is a limited liability company, duly formed and validly existing and has all power and authority to perform the obligations contemplated hereby. Throughout the Term of this Agreement, Tenant shall be and remain a single-purpose, bankruptcy remote entity. b. Authoritv. Tenant has complied with all laws and regulations concerning its organization, existence and transaction of business. Tenant has the right and power to lease and operate the Project and Sports Park Improvements thereon as contemplated in this Agreement.

Tenant has, or at all appropriate times shall have properly obtained, all permits, licenses and approvals necessary to occupy and operate the Sports Park Improvements on the Land and in so doing has, or shall have (as appropriate), substantially complied with all applicable Statutes. c. No Litigation. There is no litigation, action, suit, or other proceeding pending or threatened against Tenant which may in any manner whatsoever substantially adversely affect the validity, priority, or enforceability of this Agreement or the construction, use, occupancy or operation of the Project.
d. Enforceability. Tenant has full right, power and authority to execute and deliver this Agreement and the Memorandum of Lease executed pursuant hereto, and to perform the undertakings of Tenant contained in this Agreement. This Agreement constitutes valid and binding obligations of Tenant which are legally enforceable in accordance with their terms, subject to the laws of bankruptcy, creditor's rights exceptions, and equity. e. IVo Breach. None of the undertakings of Tenant contained in this Agreement violates any applicable Statute or any order or ruling of any court, or conflicts with, or constitutes a breach or default under, any agreement by which Tenant is bound or regulated. f. Accuracy. To the best of Tenant's knowledge, all documents, reports, instruments, papers, data, information and forms of evidence delivered to Landlord by Tenant with respect to this Agreement are accurate and correct, are complete insofar as completeness may be necessary to give Landlord true and accurate knowledge of the subject matter thereof, and do not contain any material misrepresentation or omission.
g. Taxes. To the best of Tenant's knowledge, Tenant has filed all federal, state, county and municipal tax returns required to have been filed by Tenant, and has paid all taxes which Packet Pg. 523 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Spotts Park Lease
have become due pursuant to such returns or to any notice of assessment received by Tenant. Tenant has no knowledge of any basis for additional assessment with respect to such taxes.

29. Suecial Provisions.
a. City Use of Premises. Tenant agrees to make the Premises available to the Landlord four days each year for community activities. Such days shall be reasonably selected by Tenant and Landlord, which selection shall be based, among other factors, on space availability. The Landlord shall give Tenant at least three (3) months prior written notice of the date or dates it proposes for use of the Premises. On such dates (hereinafter "City Days"), the Premises shall be made available to Landlord free of charge, provided, however, all hourly (but not salaried) labor employed to service City Days activities shall be charged to the Landlord based on Tenant's actual cost. Food and beverages shall be sold to guests and invitees of Landlord at regular retail prices on City Days.
b. Pre-Opening Expenses. Tenant acknowledges that Tenant will be responsible for the initial capitalization of Tenant's business operations on the Premises and will be responsible for start-up expenses in connection with Tenant's business operations including, without limitation, hiring and training of employees, acquisition of inventory and pre-opening marketing expenses, including, but not limited to, those activities described in the Marketing Plan attached hereto as Exhibit 6.
c. Competing; Business. During the Term of this Agreement or, in the event this Agreement is terminated as a result of a default by Tenant or as a result of Tenant's surrender or abandonment of the Premises, for a period of thirty-five (35) years from the Term Commencement Date, whichever is longer, neither Tenant nor an Affiliate of Tenant, shall own, lease, or manage, nor license the use of the name "Big League Dreams" in connection with a competing sports park facility similar in nature and function to the Sports Park or any other sports park or sports facility located within a radius of one hundred and thirty (130) miles from the Sports Park. The cross hatched area shown on the attached Exhibit 7 (which exhibit is incorporated herein by this reference) graphically depicts this one hundred thirty (130) mile exclusion radius and the cities and counties included therein. The parties acknowledge that the entirety of Sacramento County is outside the 130 mile exclusion radius. The parties agree, whether or not the cities of Woodland (in Yolo County) and Roseville (in Placer County) are within the 130 mile exclusion radius, that such cities shall be deemed to be outside the 130 mile exclusion radius for purposes of this Agreement. In the event this Agreement is terminated by Landlord for reasons other than a default by Tenant or Tenant's surrender or abandonment of the Premises, or is terminated by Tenant as a result of a default by Landlord, the restrictions contained in this subsection (c) shall lapse on the effective date of such a termination of this Agreement.
d. Electrical Costs. During the Term, Landlord shall cause the City owned Packet Pg. 524 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
electrical utility (so long as it is owned by the City) to provide electricity to the Sports Park at a rate no higher than the lowest rate in effect at any given time for any other commercial or municipal user with comparable energy consumption.
e. Signage During the Term, Tenant shall permit Landlord to display one non-commercial, public interest sign per stadium replica field without payment of any advertising fees. Landlord shall, at its option, fabricate and provide the signs to Tenant according to specifications Tenant shall develop for advertising signs generally or reimburse Tenant for Tenant's actual costs in fabricating the signs for Landlord. Tenant shall not accept or display tobacco product or adult entertainment advertising in the Sports Park.

30. Hazardous Materials. Tenant shall not store, generate, treat, or dispose of any hazardous substances or hazardous waste, as defined in the California Health and Safety Code, on the Premises; provided, however, that Tenant is permitted to bring onto the Premises Hazardous Materials (defined below) contained in emergency back-up batteries, under the condition that Tenant will treat all such Hazardous Materials brought onto the Premises by it in accordance with all applicable federal, state, and local laws and regulations. a. Definition. Hazardous Materials are defined as follows:

1. Substances which are flammable, explosive, corrosive, radioactive, or toxic;
. .

11. Any material or substances defined as hazardous substances, hazardous materials, toxic substances, or hazardous wastes in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Sections 9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Sections 1801 et. seq.), the Resource Conservation and Recovery Act (42 U.S.C. Sections 6901 et seq.), the Hazardous Waste Control Act (California Health & Safety Code Sections 25100 et seq.), and the Hazardous Substance Account Act (California Health & Safety Code Sections 25300 et seq.), the California Hazardous Waste Management Act (California Health & Safety Code Sections 25 170.1, et seq.), California Health and Safety Code Section 25280, et seq. (Underground Storage of Hazardous Waste Management Act), California Health and Safety Code Section 2550, et seq. (Hazardous Materials Release Response Plans and Inventory), or the California Porter-Cologne Water Quality Control Act, Water Code Section 13000, et seq., and all amendments to these laws, and regulations adopted or publications promulgated pursuant to these laws;
iii. Those asbestos-containing materials defined and described in Environmental Protection Agency Report No. 5615-85-024 (June 1985) whether or not friable, or any related or successor report, or other applicable government regulations defining or describing such materials;
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iv. Pesticides as defined by Section 136(u) of FIFRA (7 U.S.C. Section 136) as may be present in soil or groundwater;
v. "Hazardous wastes" as defined in Section 25 11 7 of the California Health and Safety Code, or as a chemical that is known to the State of California "to cause cancer or reproductive toxicity" under the Safe Drinking Water and Toxic Enforcement Action of 1986, California Health and Safety Code Sections 25249.5, et seq.; and vi. Hazardous materials, substances or waste, or toxic materials, substances or waste as those terms or similar terms are defined by any other federal, state, or local law or regulation or orders.
b. Tenant Indemnity. Tenant shall indemnify, protect, hold harmless, and defend the Landlord, its elected officials, officers, employees, agents, and volunteers from and against any and all liability, directly or indirectly arising from the use, generation, storage, or disposal of Hazardous Materials by Tenant, and (b) the cost of any required or necessary repair, cleanup, or detoxification and the preparation of any closure or other required plans, to the full extent that such liability is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of Hazardous Materials by Tenant, its officers, employees, agents and/or invitees on or with respect to the Premises after the Term Commencement Date. c. Landlord Indemnity. Landlord shall indemnify, protect, hold harmless, and defend the Tenant and its officers, directors, members and employees from and against any and all liability (including reasonable attorneys' fees), directly or indirectly arising from the use, generation, storage, or disposal of Hazardous Materials to the full extent that such liability is attributable, directly or indirectly, to the presence or use, generation, storage, release, threatened release, or disposal of Hazardous Materials on or with respect to the Premises prior to the Term Commencement Date or from the actions ofthe Landlord or the Landlord's elected officials, officers, employees, agents, and volunteers that result in Hazardous Materials being brought to the Premises after the Term Commencement Date.
d. Tenant Release. Other than indemnity claims under subsection (c) above, Tenant releases the Landlord from any and all claims Tenant may have against the Landlord of whatever kind or nature resulting from or in any way connected with the environmental condition of the Premises, including any and all claims Tenant may have against the Landlord under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), or any other federal, state, or local law, whether statutory or common law, ordinance, or regulation pertaining to the release of Hazardous Materials into the environment from or at the Premises. Tenant expressly waives the benefits of Civil Code Section 1542, which provides as follows:

Packet Pg. 526 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
A general release does not extend to claims which the creditor does not know or expect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. e. Survival of Obligations. Tenant's and Landlord's obligations under this section shall survive termination or expiration of this Agreement. 3 1. Miscellaneous.
a. Governing; Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of California.
b. Time is of the Essence. Time is of the essence herein. c. Additional Rent. Any monetary obligations of Tenant to Landlord under the terms of this Agreement shall be deemed to be rent.
d. Quiet Eniovment. Upon Tenant's paying the Percentage Rent and other sums provided hereunder, and observing and performing all of the covenants, conditions, and provisions on Tenant's part to be observed and performed hereunder, Tenant shall enjoy the quiet possession of the Premises for the entire Term hereof, subject to all of the provisions of this Agreement. e. Waivers. The waiver by Landlord or Tenant of any breach by the other party of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition or any subsequent breach of the same or any other term, covenant, or condition herein contained. The subsequent acceptance of all or part of the rent due hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant, or condition ofthis Agreement, other than the failure to pay the particular rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent.

Acceptance by Landlord of a part payment of the rent or any other sum due shall not be construed as a waiver by Landlord of any rights to collect the balance of the rent due unless Landlord has executed a specific written waiver of the specific amount due on an instrument separate from the check by which the payment is tendered.
f. Brokers. Each party warrants to and for the benefit of the other that it has had no dealings with any real estate broker or other agent (attorneys excepted) in connection with the negotiation or making ofthis Agreement. Landlord shall indemnify Tenant for breaches by Landlord of this warranty, and Tenant shall indemnify Landlord for any breaches by Tenant of this warranty. g. Headings. The captions of the various sections of this Agreement are for convenience and ease of reference only and do not define, limit, augment, or describe the scope, contents, or intent of this Agreement or of any part or parts of this Agreement.

Packet Pg. 527 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) h. Inspection of Books and Records. Landlord shall have the right at all reasonable times to inspect the books and records of Tenant relevant to the purposes of this Agreement as provided in Section 4(d)(ii).

1. Merger. The voluntary or other surrender of this Agreement by Tenant, or a mutual cancellation thereof, or a termination by Landlord, shall not work a merger, but instead, at the option of Landlord, shall either terminate all or any existing subtenancies, or at the option of Landlord, operate as an assignment to Landlord of any or all of such subtenancies. j- Gender; Number. The neuter gender includes the feminine and masculine, the masculine includes the feminine and neuter, and the feminine includes the masculine and neuter, and each includes corporations, partnerships and other legal entities whenever the context so requires., The singular number includes the plural whenever the context so requires. k. No Joint Venture. Nothing contained herein shall be construed to render the Landlord in any way or for any purpose a partner, joint venturer, or associated in any relationship with Tenant other than that of Landlord and Tenant, nor shall this Agreement be construed to authorize either party to act as agent for the other, or to make Landlord in any way responsible for the liabilities, debts or losses of Tenant.

1. Exhibits. All exhibits to which reference is made in this Agreement are hereby incorporated by reference in full. Any reference to "this Agreement" includes matters incorporated by reference.
m. Entire Agreement; Modification. This Agreement contains the entire agreement between the parties. No verbal agreement or implied covenant shall be held to vary the provisions hereof, any statements, law or custom to the contrary notwithstanding. No promise, representation, warranty, or covenant not included in this Agreement has been or is relied on by either party. Each party has relied on its own inspection of the Premises and examination of this Agreement, the counsel of its own advisors, and the warranties, representations, and covenants in this Agreement itself. The failure or refusal of either party to inspect the Premises, to read this Agreement or other documents, or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention, or claim that might have been based on such reading, inspection, or advice. No provision of this Agreement may be amended or varied except by an agreement in writing signed by the parties hereto and the lender under a permitted first leasehold encumbrance or their respective permitted successors. n. Joint and Several Obligations. If more than one person or entity is Tenant herein, the obligations imposed on such parties shall be joint and several.

0. Severabilitv. The invalidity or illegality of any provision shall not affect the remainder of this Agreement and all remaining provisions shall, notwithstanding any such invalidity or illegality, continue in full force and effect.
p. Consents of Landlord. Neither Landlord's execution of this Agreement nor any consent or approval given by Landlord hereunder in its capacity as Landlord shall waive, Packet Pg. 528 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
abridge, impair or otherwise affect Landlord's powers and duties as a governmental body. Any requirements under this Agreement that Tenant obtain consents or approvals of Landlord are in addition to and not in lieu of any requirements of law that Tenant obtain approvals, licenses, or permits.
q. Recordation of Memorandum oflease. This Agreement shall not be recorded without Landlord's consent. A Memorandum of this Agreement shall be recorded in the Official Records of Shasta County, California, within thirty (30) days after the execution of this Agreement. r. Execution in Counterparts. This Agreement, or the Memorandum of this Agreement, or both, may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. s. Date of Ayreement. The date of this Agreement shall be the date it is signed by the Landlord.

Packet Pg. 529 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
IN WITNESS WHEREOF, the undersigned have executed this Agreement as ofthe date first written above.

LANDLORD:

CITY OF REDDING
Dated: B
ATTEST: APPROVED AS TO FORM:

By: 1 -c -
David E. Tranberg, ~wity Atto&
By: - I -c
David E. Tranberg, ~wity Atto&
TENANT:

BIG LEAGUE DREAMS REDDING, LLC
By:
scot? Parks LeTellier
Chief Executive Officer
Packet Pg. 530 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
STATE OF CALIFORNIA 1
1 SS
COUNTY OF Los Angeles )
On May 1 ,2001, before me, Carmelita E. Collins , aNotary Public in and for said State, personally appeared Scott Parks LeTellier Y- (or proved to me on the basis of satisfactory evidence) to be the person@ whose name@)-is&e subscribed to the within instrument and acknowledged to me that he&dtI$y executed the same in his- authorized capacity@$), and that by his- signature0 on the instrument, the person& or the entity upon behalf of which the person@ acted, executed the instrument.

WITNESS my hand and official seal.

Notary Public

STATE OF CALIFORNIA )
1 SS

COUNTY OF )
On ,200 1, before me, , a Notary Public in and for
said State, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose narne(s) islare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in hisherltheir authorized capacity(ies), and that by hisherltheir signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

Notary Public
Packet Pg. 531 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) EXHIBIT 1

PLOT PLAN OF LAND
Packet Pg. 532 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Bia Leaaue Dreams Reddina S~orts Park Lease
EXHIBIT 2

PROJECT DESCRIPTION
The Big League Dreams Redding Sports Park will be a world-class facility featuring unique Big League Dreams state-of-the-art themes and design features, and will be a destination park, attracting tournament teams (youth and adult) from all over the country. First and foremost, however, it will provide local families with a spectacular family entertainment value. The City of Redding will be adding significant tourism while enhancing its reputation as a stable, family-friendly city.

The Redding Big League Dreams facility would contain the following elements, all constructed to a first class standard with high quality building materials:

1. Three youth baseballladult softball major league stadium replicas.

2. Two additional youth baseballladult softball minor league (i.e. non-replica) fields, one of which may be designed to accommodate adult regulation baseball as well.

3. A nine-station batting cage combined with an instructional academy area.

4. One or more covered 20,000 square foot multi-sport pavilion(s), designed to accommodate inline hockey, basketball, indoor soccer, indoor volleyball, and corporate and special events.

5. Four sandheach volleyball courts.

6. Two playgrounds and picnic area.

7. The Stadium Club--a food and beverage (both alcoholic and non-alcoholic) family-style sports restaurant, designed and operated to attract and accommodate league, tournament, and corporate users.

8. An additional concession/patio facility to the minor league fields.

9. Parking for 400 automobiles.

Packet Pg. 533 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
EXHIBIT 3

SPORTS PARK PROJECT BUDGET
Property Acquisition
Professional Services, including EIR, Design, Permits,
Inspections and BLD Contracts
Site Infrastructure
Construction Grading and Drainage
Project Allowances:

Lighting $275,000
Pavilion $340,000
FF&E $250,000
Contingency - 10%
TOTAL
$784,000
$1,65 1,000
$800,000
$6,180,000
$865,000
$720,000
$1 1,000,000
Packet Pg. 534 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams h,Jding Sports Park Lease
EXHIBIT 4

MITIGATION MEASURES
Impact
Impact 4.3.2 The project
would introduce new sources
of light and glare in the
vicinity of the project site.

Impact 4.8.2 Contaminants
from the project site may
enter surface and ground
waters.

Impact 4.9.1 The project
would generate noise
associated with sports
activities
Mitigation Measure
MM 4.3.2b All events at the Sports Complex shall be scheduled so that all activity is completed before or as near to 10:30 p.m. as practicable, but under no circumstances shall any illumination of the playing fields be permitted after 11:OO p.m., except to conclude a scheduled event that was in progress before 1 1:00 p.m. and circumstances prevented conclusion of the event before 11:OO p.m.

Tirning/Implementation: Upon commencement ofproject operations.

MM 4.3.2~ Lighting of parking lots at the Sports Complex shall consist of low-pressure sodium lamps. Lighting poles used in parking lots shall be no taller than 25 feet in height. Parking lots shall remain lighted no later than 30 minutes after the conclusion of a scheduled event, but should cease as close to 1 1 :00 p.m. as practicable.

Timing/Implementation: Upon commencement ofproject operations.

MM 4.8.2a Fertilizer used shall be of the slow release form, or the proper chemical release for the soil textural class and infiltration rate, or a more soluble type applied as a solution. Fertilization rates shall be applied so that nutrients will not leach below the root zone.

Timing/Implementation: Upon installation and maintenance of sports fields.

MM 4.8.2b Herbicides may only be applied with selective equipment such as recirculating spray systems, shielded applicators or wiper applicators. Application rates shall not exceed specific rates of application and instructions for control of the specific problem weed as recommended by the manufacturer.

Timing/Implementation: Upon installation and maintenance of sports fields.

MM 4.8.2~ Irrigation rates shall not exceed 90 percent of the infiltration rate for each soil type and turf management combination. Irrigation shall be timed to correspond with fertilizer and herbicide application as recommended by the chemical manufacturers.

Timing/Implementation: Upon installation and maintenance of sports$elds.

MM4.9.lb Nighttime soccer games and practices (those occurring after 10:OO p.m.) should be conducted on the fields which are farthest from the nearest residential property lines. The center of the soccer field used during nighttime hours would need to be setback approximately 300 feet from the nearest residences.
[This setback assumes that the playing field would also be shielded from view of those residences by the intervening 6-foot tall berm described in MM4.9.lal Timing/lmplementation: Upon commencement ofproject operations.

Packet Pg. 535 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
Impact 4.9.4 Public address
systems installed at the
sports fields could generate
noise that disturbs nearby
residents.

MM 4.9.4a Regardless of when events are terminated at the soccer, baseball, and softball fields, the PA system shall be designed so as to produce the minimum possible noise levels at the nearest existing residential areas. If sporting events are to be concluded prior to 10:OO p.m., the PA system installed at the stadium shall be designed and tested so as not to exceed an average noise level of 50 dB Leq at the nearest residential property lines. If such events are to be concluded after 10:OO p.m., the PA systems shall be designed and tested so as not to exceed average noise levels of 40 dB at the nearest residential property lines. These levels include a 5 dB penalty for annoyance associated with speech. In recognition of Regional and Tournament play, the 50 dB Leq may be used past 10:OO p.m. for one three-day event each year.

Timing/Implementation: Upon commencement ofproject operations.

Packet Pg. 536 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) EXHIBIT 5
FURNISHINGS. FIXTURES AND EQUIPMENT
Some of the Kitchen/Concession FF&E will be provided as per the Plans and Specifications and shall include smallwares, storage shelving, safes, and point-of-sale systems.

A. Restaurant - Building A
B. Office
# Ea.
5 12
26 110
1 3
1 1
# Ea.
15 12
27 1
3 6
1 Description
Booths
Booth Stools
Swivel Bar Stools
Arm Chairs
ATM Machine
60" Television Sets
Wall Clock
Baby Changing Counter
Window LouversIShades
Description
30" x 49" Tables
30" x 30" Tables
Table Base
Credit Card Machine
Menu BoardJSigns
36" Television Sets
Music and P.A. Systems
Decorative Flags
ArtlGraphics
# Ea.
2 15
2 # Ea.
1 2
1 1
1 Description
Copy Machines
Computers
Fax Machines
Desks, Chairs as needed
Filing Cabinets as needed
Storage Cabinets
Description
Credit Card Machine
Printers
Safe
Conference Table, chairs
P.A./Music System
Waste Baskets
Packet Pg. 537 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) C. CorporateISpecial Event
D. Batting; Cage
# Ea.
500
3 1
3 E. Retail
Description
Chairs
Portable Bars
20' x 20' Party Tent
Portable Food Warmers
- #
Ea.
1 1
15 F. Maintenance
# Ea.
5 0
3 0
2 3
Description
Complete Master Pitch
Equipment Package
Change Machine
Helmets
# Ea.
1 15
120
# Ea.
1 1
Description
Tables
Baseball Gloves
10' x 10' Party Tents
Portable Barbecues
Descri~tion
Repair Kit/Parts
Bats
Dozen Balls
Description
Point-of-Sale System
Counter/Fixtures
Storage Racks
# Ea.
1 1
1 1
1 # Ea.
1 # Ea.
1 1
1 1
1 Description
Gang Mower
Toro #3 100 Vehicle
John Deere Groomer
Sweeper
Aerator
Description
ComputerPrinter
Display Shelves
Description
Triplex Mower
Verti-Drain
Front-Load Tractor
Sodcutter
Topdresser
Packet Pg. 538 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Golf CartsRJtility Beds
Toro 22" Mower
Backpack Blowers
Rotary Spreader
Wheelbarrows
Chemical Sprayer
Weedeaters
Leaf Rakes
Pointed Shovels
6" Trenching Shovels
50' Hoses
Weed Hoes
Tree Pruner
Power Chain Saw
Hand Pump
Easy-outs, assorted
PSI Guage -

2.5 Gallon Gas Cans
Meld Drags
Batters Box Frames
400' String Reels
114 " Portable Drill
4 %I1 Grinder
Impact Wrench Set
Pliers/Tools, assorted
Electric Pump
Trash Receptacles, asst.
4 1
2 1
2 1
3 4
4 2
4 2
1 1
1 1
4 2
2 2
1 1
1 1
1 1
2 1
1 2
1 4
4 2
4 2
1 2
1 2
5 2
2 2
1 1
1 1
4 2
Fertilizer Spreader
Floor Scrubber
McClane Edgers
Drop Spreader
Pressure Washer
Roto Tiller
Landscape Rakes
Square-Nosed Shovels
Large Shovels
24" Push Brooms
Regular Brooms
Pole Pruner
Tree Hand Saws
Pitch Fork
Wrenches, assorted
Pipe Saws
Quick Coupler Keys
Nail Drags
Chalkers
100' Tapes
%I1 Electric Hammer
Tool Box
7" Power Saw
Electric Multi-Tester
Extension Cords
Vacuum Cleaners
Packet Pg. 539 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) G. Sports
6 1
H. Miscellaneous
Hand-Held Radios
Spray Rig
# Ea.
6 4
7 23
90 1
2 4
1 1
Description
Soccer Goals, as per plans
Basketballs
Volleyball NetsPoles
2500' Sportfence
Pitching Rubbers
single Bases
Base Mounts
Portable P.A. System
Electric Basketball Scoreboards
Bulletin Boards
Backstop Netting, as per plans
Video Camera
# Ea.
1 8
1 Storage Shelves, asst.

Welding Equipment
# Ea.
2 4
7 7
9 14
6 10
6 1
Description
Playground Equipment, as per
plans
Picnic Tables
Parking Netting, as per plans
Fan Shade Nets, as per plans
Security System
Ash Trays/Urns
Telephone and Voicemail Systems
Description
Hockey Goals
Basketball BackboardsIGoals
Home Plates
Portable Mounds
Double Bases
BatRacks
Electric Baseball Scoreboards
Scoreboard Controllers
Player Benches, as per plans
Portable Bleachers, as per plans
VCR Player
# Ea.
1 1
2 Description
Safety Netting, as per plans
Drinking Fountains, as per plans
Entry Turnstile
Bike Rack
Mist System, as per plans
Instruction School Equipment
Packet Pg. 540 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) EXHIBIT 6

BIG LEAGUE DREAMS REDDING

MARKETING PLAN

INTRODUCTION
BIG LEAGUE DREAMS OF REDDING will launch an aggressive marketing campaign ninety (90) days prior to the projected opening of the facility in Summer 2002. This aggressive marketing campaign will intensify as the park's opening approaches. Marketing Plan progress reports will be submitted to the City on a quarterly basis during calendar year 2002 beginning January 1,2002. Six areas that require special attention in terms of marketing are the grand openingldedication, team sports, food and beverage, company picnics, speciaI events and tournaments. This plan discusses the goals for the various areas and a plan of action to reach those goals. The plan also discusses the marketing tools required to execute the marketing campaign.

GOALS
A. Facility

1. Become the local center for adult and youth team sports, recreation and active recreation through:
a. Public awareness
b. Customer satisfaction through well-managed programs
c. Establishing and maintaining relationships with the
(1) Business community
(2) Local media
(3) City of Redding
B. League S~orts

1. 100 softball teams by the third quarter of 2003

2. 20 volleyball teams by the third quarter of 2003

3. 20 basketball teams

4. 25 indoor soccer teams

5. 1 2 inline hockey teams
C. Tournaments

1. 10 tournaments in 2002, and 27 tournaments in 2003
Packet Pg. 541 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease

2. Showcase BIG LEAGUE DREAMS OF REDDnVG for regional and national exposure
D. Food and Beverage

1. High quality at reasonable prices

2. Achieve $4 per person spending on food and beverages E. Company Picnics and Special Events

1. 750 participants in company picnics in 2003

2. Three special events in 2002, and six special events in 2003 F. Billboards, Scoreboards and Commissions

1. Promote and sell advertising space on billboards, scoreboards and banners

2. Sell advertising space on admission tickets

3. Establish relationship with local hotels for out-of-town tournament players G. Communications

1. Gain public awareness and familiarity

2. Keep community informed of BIG LEAGUE DREAMS OF REDDING activities

ACTION PLAN
Grand Opening: Dedication
The grand openingldedication is projected to be held in Summer 2002. BIG LEAGUE DREAMS OF REDDING will work closely with the City of Redding in the planning of the grand opening1 dedication. Invitations will be sent to Redding City officials, local media, community leaders, contractors, and future customers. The grand openingldedication is an excellent opportunity to increase public awareness.

A. How and where it will be promoted:

1. Press releases
a. Print, local newspapers
b. Broadcast media
(1) Local radio stations
(2) Local television stations

2. Signs
a. Displayed at local businesses
b. Posted throughout the local area

3. Direct Mail
a. Invitations to existing Redding teams
b. Invitations to various Redding City officials and community leaders Packet Pg. 542 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease

4. Advertising Specialties
a. Promotional items printed with BIG LEAGUE DREAMS OF REDDING logo

5. Complimentary BBQ

6. Novelty ActsRinishing Touches
a. Clowns for the children
b. Colorful streamers, balloons
c. Create a festive atmosphere
d. Sports personalities
League Sports
League sports form the foundation for BIG LEAGUE DREAMS OF REDDING. Adult and youth softball, youth baseball, volleyball, indoor soccer, inline hockey, flag football and basketball are the sports that are offered. Generating interest in BIG LEAGUE DREAMS OF REDDING and its leagues will be accomplished by making sales calls to companies in the area.

Smooth running, competitive, yet fun leagues will encourage participation. Marketing to expand league participation is the best way to create success and profitability for BIG LEAGUE DREAMS OF REDDING. Each of the existing Redding teams will be contacted well in advance of each ten-week season.

A. How and where they will be promoted:

1. Sales calls to
a. Companies within a 25-minute drive
b. Existing leagues at other locations
c. Local churches
d. Community organizations
e. Residential and apartment complexes

2. Advertising/Promotion
a. Local area newspapers
b. Direct mail to existing Redding league presidents
c. Flyers and brochures
d. Trade show displays
e. Redding Big League Dreams Newsletter
f. Promotional materials at local businesses

3. Word-of-Mouth
a. Primary source of add.itiona1 customers

4. Redding Big League Dreams Newsletter (periodically)
Packet Pg. 543 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
B. Marketing to be accomplished:

1. 3-4 weeks prior to an upcoming season

2. In the morning at companies

3. In the morning at churches

4. At community organizations as required

5. In the evenings to leagues at other facilities

6. By the marketing director and program staff
Food and Beverage
Food and beverage is a vital part of the BIG LEAGUE DREAMS OF REDDING operation. It will be important that menu items are of high quality, convenient and reasonably priced. Pricing, presentation, and merchandising are all keys to successfully marketing food and beverage.

A. How and where they will be promoted:

1. Word of mouth

2. Signs

3. Value packaging

4. Section in each newsletter

5. Kid's meal

6. "Specials" menu

7. Coupons

8. Menu Board

9. Entrance FeeIToken Plan
B. Marketing to be accomplished:

1. Throughout the year

2. By the concession manager, marketing director and general manager

3. Concession employees will be trained to be marketing-minded Tournaments
Tournaments are planned for weekends throughout the year. They are a great opportunity to showcase BIG LEAGUE DREAMS OF REDDING. A goal of 10 tournaments has been set for Redding in 2002, and 27 in 2003. Area, regional and national tournaments will be pursued. The programming director has the primary responsibility for scheduling tournaments. The marketing director will assist in establishing the tournament schedule in addition to other marketing related functions.

A. Sources:

1. Local, state and national sports organizations

2. Independent tournament promoters

3. Advertising in sports industry journals
Packet Pg. 544 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease

4. Corporate tournaments
B. When and by whom the marketing will be done:

1. Throughout the year

2. Emphasis 2 to 3 weeks prior to the tournament

3. General Manager and Sports Director
Cornpanv PicnicsICor~orate Outinys
BIG LEAGUE DREAMS OF REDDING is available for company picnics and corporate outings during times other than scheduled league play. It is a great way to expose BIG LEAGUE DREAMS OF REDDING to potential customers who may not otherwise be familiar with BIG LEAGUE DREAMS OF REDDING. Some of the activities offered for corporate outings are softball, volleyball, basketball, batting cages, dunk tank, jumping castle, clowns, carnival games, and much more.

A. How and where they will be promoted:

1. Sales calls
a. Medium to large companies
b. Local associations
c. Meeting planners
d. Marketing and sales directors (of larger hotels/motels) e. Industry associations (SDIRC)
f. Redding Convention and Visitors Bureau

2. AdvertisingPromotion
a. Brochure
b. Video
c. Direct mail, follow up
d. Trade show displays

3. Referrals and word of mouth
B. When and by whom the marketing will be done:

1. Weekly

2. Park Sales Director

3. General Manager
Special Events
Packet Pg. 545 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Special events generally take place on weekends throughout the year. They are an opportunity for increased community involvement. These events can be Fourth of July parties, Easter sunrise services, concerts, carnivals, corporate challenges, and City of Redding sponsored events. Staff capabilities and the facility attractions will make this a venue in demand by event promoters.

Billboards, Scoreboards and Commissions
Billboards will be available for rental on all of the softball fields. There will be sponsorship space available in all element locations. Space will be available for sponsors in the center of each of the three outfield scoreboards. Three locations will be available to the City of Redding for public-service messages. When on sales calls, the Park Sales director will explore a company's interest in advertising at BIG LEAGUE DREAMS OF REDDING. Commissions come from agreements worked out with local hotels. A commission for BIG LEAGUE DREAMS OF REDDING and a guaranteed room rate for tournament players will be set on an annual basis with host hotels.

Communications
Communications are important, especially in our first year of operation. BIG LEAGUE DREAMS OF REDDING will communicate with the public in numerous ways. A newsletter will be sent to players periodically keeping them informed of the latest BIG LEAGUE DREAMS OF REDDING programs. Flyers covering all the important information (dates, fees, deadlines, park policies, etc.) will be posted and sent out initially to each player and thereafter to each manager. Timely press releases will keep players up-to-date on leagues, free-agent tryouts, umpire clinics, etc. Newspaper articles and stories will cover many of our events. Cable television will be explored as a possible means of communication.

CONCLUSION
The first-year marketing campaign for BIG LEAGUE DREAMS OF REDDIIVG will require a concerted effort to reach the goals discussed in the marketing plan. It is important that the right marketing tools be chosen. Printed promotional materials reflecting the high standards of BIG LEAGUE DREAMS OF REDDING will be a valuable tool for the marketing campaign, as will a professionally produced video presentation.

The importance of the sales call can't be overstated. It is the single most important function of the marketing director. The direct mail program is also important. To implement Packet Pg. 546 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) communication, an accurate and up-to-date database will be maintained. A contact manager will provide tracking of prospects. Use of media advertising requires careful analysis to ensure that the marketing budget is effective.

Packet Pg. 547 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) Big League Dreams Redding Sports Park Lease
EXHIBIT 7

DEPICTION OF TERRITORIAL RESTRICTIONS
Packet Pg. 548 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) AMENDMENT NO. 1
TO
SPORTS PARK LEASE C-0458
THIS AMENDMENT NO. 1 is made at Redding, California, by and between the CITY OF REDDING, a Municipal Corporation (Landlord), and BIG LEAGUE DREAMS California Limited Liability Company (Tenant).

RECITALS
A. On May 24,200 1, Landlord and Tenant entered into a Sports Park Lease ("Lease") for the Project generally described as the Sports Park.

B. Landlord and Tenant now desire to modify the term of the Lease pursuant to the terms and conditions of this Amendment No. 1.

AGREEMENT

1. AMENDMENT OF PARAGRAPH 9a OF THE LEASE. Paragraph 9a, Landlord's Construction Obligations, is hereby replaced in its entirety by the following:

9. Landlord's Development of the Sports Park.
a. Landlord's Construction Obligations. The Sports Park Improvements shall be constructed by Landlord, as set forth in the Project Description and the Plans and Specifications, promptly and with due diligence. The quality of construction and the quality of materials used in the construction of the Sports Park Improvements shall be of a first-class quality and in accordance with the Project Description and the Plans and Specifications. Landlord shall prosecute Landlord's construction obligations hereunder to completion without undue interruption or delay and in a good, workmanlike manner. Landlord warrants that it will endeavor to cause the Sports Park Improvements to be completed and possession of the Premises delivered to Tenant on or before August 1, 2002. In the event the - Sports Park Improvements are not completed and possession of the Premises is not delivered to Tenant on or before August 1,2002, Tenant shall have no obligation to pay any rent or other payments or perform any other obligations under this Agreement until the Term Commencement Date. Landlord shall have no liability to Tenant for failure to complete the Sports Park Improvements and deliver possession of the Premises on or before the date hereinbefore described. Tenant shall, however, *.-"-"-- have the option to terminate this Agreement, without further obligation or liability C
Amendment No. 1 to Sports Park Lease Page I G
0 Packet Pg. 549 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) hereunder, in the event Landlord is unable to complete the Sports Park Improvements and deliver possession of the Premises to Tenant on or before October 1,2003.

2. EFFECTIVENESS OF CONTRACT PROVISIONS. This Amendment No. 1 is specifically made a part of and included in the Sports Park Lease dated May 24,2001. Except as specifically set forth in this Amendment No. 1, all terms and conditions of the Lease shall remain unchanged and in full force and effect.

3. EFFECTIVE DATE. The effective date of this Amendment No. 1 shall be the date it is signed by the Landlord.

IN WITNESS WHEREOF, the Landlord and Tenant have executed this Amendment No. 1 on the days and year set forth below.

CITY OF REDDING
Dated: f%w ,2002
Dated: 14 .ZOO2
By:

PAT KIGHT;%~~O~
Form Approved:
@3Dl6 #
BIG LEAGUE DREAMSSSk, LLC
By: -
~@OTT PARKS LeTELLIER
Chief Executive Officer
Taxpayer ID No. 45' m? 3% 3
Z:UR Agreer~te~~lsIBLDease A~~~er~d~~renr I fi~lal. wpd Amendment No. 1 to Sports Park Lease
Packet Pg. 550 Attachment: Previous Staff Report - July 29, 2024 (9.6(a)--Short-Term Operations for the Redding Sports Park) AMENDMENT NO. 1
TO

PLANNING, DESIGN AND CONSTRUCTION
CONSULTING SERVICES AGREEMENT C-0458
THIS AMENDMENT NO. 1 is made at Redding, California, by and between the CITY OF REDDING, a Municipal Corporation (City), and BIG LEAGUE DREAMS USA, LLC, a California Limited Liability Company (BLD).

RECITALS
A. On May 24, 2001, City and BLD entered into a Planning, Design and Construction Consulting Services Agreement (Agreement) for the Project generally described as the planning, design and construction of a multi-purpose recreational sports park.

B. City and BLD wish to amend the Agreement pursuant to the terms and conditions of this Amendment No. 1.

AGREEMENT

1. AMENDMENT OF PARAGRAPH 4 OF THE AGREEMENT. Paragraph 4 is hereby replaced in its entirety by the following:

4. Compensation For the consulting services described herein, the City shall pay to BLD a fixed fee in the amount of three hundred eighty thousand dollars ($380,000). Such amount shall be payable in fourteen (14) payments in the amount of $25,333 each and a final payment of $25,338 during the Term, payable in advance on the first day of each month commencing with the first month after the effective date of this Agreement, subject to the remaining provisions of this paragraph (the "Fees"). Provided this Agreement has not sooner been terminated as provided in Section 3, the total of all Fees to be paid to BLD shall be $380,000. The City shall make the first seven monthly payments (up to $190,000) beginning the month after this Agreement is executed. The last seven payments shall be made beginning in July 2002 and continuing until full payment is made (an additional $190,000 for a total of $380,000). Between payment intervals and after all payments are made, BLD shall be obligated to continue to provide consulting services through the completion of construction without additional compensation. In the event this Agreement is terminated as a result of a Legal Challenge or otherwise as provided in Section 3 prior to completion of the Sports Park Improvements, BLD shall be entitled to receive all Fees due through the effective date of terminatior,. If the effective date of termination is not the first day of a given month, the monthly fee shall be adjusted on a pro rata basis.

Amendment No. 1 to Planning, Design and
Construction Consulting Services Agreement
0