Redding City Council
November 5, 2024

promote housing stability for eligible persons, as well as direct case management services being provided to persons.

Systems Support: Systems support for activities that improve, strengthen, augment, complement, and/or are necessary to create regional partnerships and a homeless services and housing delivery system that resolves persons' experiences of unsheltered homelessness.

Delivery of Permanent Housing: Delivery of permanent housing and innovative housing solutions, such as unit conversions that are well suited for eligible persons.

Prevention and Shelter Diversion: Prevention and shelter diversion to permanent housing, including flexible forms of financial assistance, problem solving assistance, and other services to prevent people that have been placed into permanent housing from losing their housing and falling back into unsheltered homelessness. This category is only available to serve people who were formerly residing in the prioritized ERF encampment site.

Interim Sheltering: Interim sheltering, limited to newly developed clinically enhanced congregate shelters, new or existing non-congregate shelters, and operations of existing navigation centers and shelters based on demonstrated need that are well suited for eligible persons.

Improvements to Existing Emergency Shelters: Improvements to existing emergency shelters to lower barriers, increase privacy, better address the needs of eligible persons, and improve outcomes and exits to permanent housing.

Administration: up to 5% of awarded Program funds may be applied to administrative costs.

NOTE: Program funds shall not be expended on Site Restoration or other Ineligible Costs as detailed immediately below.
4) Ineligible Costs
ERF shall not be used for costs associated with activities in violation, conflict, or inconsistent with HSC Sections 50250 - 50254, other applicable laws, the terms and conditions of this Agreement, Cal ICH guidance or directives, the NOFA under which the Grantee applied, representations contained in the Grantee's application, and the Purpose of the Program as detailed in Exhibit A.2. Purpose.

Costs shall not be used for any use or activity that is in violation, conflict, or inconsistent with the legislative intent of the authorizing statute to ensure the safety and wellness of people experiencing homelessness in encampments.

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Moreover, no parties to this contract nor their agents shall directly or indirectly use ERF awards for any use or activity that is in violation, conflict, or inconsistent with the legislative intent of the authorizing statute to ensure the safety and wellness of people experiencing homelessness in encampments. This prohibition includes using ERF funds in connection to or in support of activities that cause a traumatic effect on those experiencing homelessness.

Cal ICH, at its sole and absolute discretion, shall make the final determination regarding the allowability of ERF expenditures.

Cal ICH reserves the right to request additional clarifying information to determine the reasonableness and eligibility of all uses of the funds made available by this Agreement. If the Grantee or its funded subrecipients use ERF funds to pay for ineligible activities, the Grantee shall be required to reimburse these funds to Cal ICH at an amount and timeframe determined by Cal ICH.

An expenditure which is not authorized by this Agreement, or by written approval of Cal ICH, or which cannot be adequately documented, shall be disallowed, and must be reimbursed to Cal ICH by the Grantee at an amount and timeframe determined by Cal ICH.

Program funds shall not be used to supplant existing local funds for homeless housing, assistance, prevention, or encampment resolution.

Unless expressly approved by Cal ICH in writing reimbursements are not permitted for any Program expenditures prior to this Agreement's date of execution.

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Encampment Resolution Funding Program (ERF-3-L)
Standard Agreement

EXHIBIT C

STATE OF CALIFORNIA GENERAL TERMS AND CONDITIONS
This exhibit is incorporated by reference and made part of this agreement. The General Terms and Conditions (GTC 04/2017) can be viewed at the following link:
https://www.dgs.ca.gov/-/med ia/Divisions/OLS/Resources/GTC-April-2017 - Fl NALapril2017 .pdf?la=en&hash=3A64979F77705B9035309433EE81969F 06905202 In the interpretation of this Agreement, any inconsistencies between the State of California General Terms and Conditions (GTC - 04/2017) and the terms of this Agreement and its exhibits/attachments shall be resolved in favor of this Agreement and its exhibits/attachments.

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Encampment Resolution Funding Program (ERF-3-L)
Standard Agreement

EXHIBIT D

GENERAL TERMS AND CONDITIONS
1) Termination and Sufficiency of Funds
· a) Termination of Agreement
Cal ICH may terminate this Agreement at any time for cause by giving a minimum of 14 days' notice of termination, in writing, to the Grantee. Cause shall consist of violations of any conditions of this Agreement, any breach of contract as described in paragraph 6 of this Exhibit D; violation of any federal or state laws; or withdrawal of Cal ICH's expenditure authority. Upon termination of this Agreement, unless otherwise approved in writing by Cal ICH, any unexpended funds received by the Grantee shall be returned to Cal ICH within 30 days of Cal ICH's specified date of termination. b) Sufficiency of Funds
This Agreement is valid and enforceable only if sufficient funds are made available to Cal ICH by legislative appropriation. In addition, this Agreement is subject to any additional restrictions, limitations or conditions, or statutes, regulations or any other laws, whether federal or those of the State of California, or of any agency, department, or any political subdivision of the federal or State of California governments, which may affect the provisions, terms or funding of this Agreement in any manner.
2) Transfers
Grantee may not transfer or assign by subcontract or novation, or by any other means, the rights, duties, or performance of this Agreement or any part thereof, except as allowed within Exhibit D .12. (Special Conditions - Grantees/Sub Grantee) or with the prior written approval of Cal ICH and a formal amendment to this Agreement to affect such subcontract or novation.
3) Grantee's Application for Funds
Grantee submitted a standardized budget to Cal ICH as part of their application for the Program.

Grantee warrants that all information, facts, assertions and representations contained in the application and approved modifications and additions thereto are true, correct, and complete to the best of Grantee's knowledge. In the event that any Initial Here� 60
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part of the application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading in such a manner that would substantially affect Cal ICH approval, disbursement, or monitoring of the funding and the grants or activities governed by this Agreement, then Cal ICH may declare a breach of this Agreement and take such action or pursue such remedies as are legally available. 4) Reporting, Evaluation, and Audits
a) Reporting Requirements
i. Timing and Format of Reports.

Grantee is required to provide Cal ICH or its agents with all data and outcomes that may inform an assessment of the funded proposal. Grantees shall report quarterly and have one Final Work Product submitted prior to this Agreement's termination.

The quarterly reports shall be submitted on a template to be provided by Cal ICH at least 90 days prior to the first reporting deadline. Cal ICH may request interim reports as needed and will provide no less than 30 days' notice to Grantees.
ii. Required Data
Grantees will be required to provide:
• Outreach and service path data at the anonymized, individual level; • Current housing status of persons served in the aggregate; • Status of funding as presented in the Cal ICH approved, standardized budget; and
• Continued confirmation that projects receiving ERF funds are populated timely into HMIS and use Cal ICH supplied funding codes.

Cal ICH's discretion in identifying which information shall be included in these reports is final. Grantees shall also report information in the form and manner required by Cal ICH. Failure to comply will be considered a breach.

Pursuant to HSC Section 50254, grantees shall provide data elements, including, but not limited to, health information, in a manner consistent with state and federal law, to their local Homeless Management Information System for tracking in the statewide Homeless Data Integration System.

Pursuant to HSC Section 50254(b)(3), Grantees shall report individual, client-level data for persons served by grant funding to the council, in addition to any data reported through local Homeless Management Initial Her� 61
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Information System, as required by the council for the purposes of research and evaluation of grant performance, service pathways, and outcomes for people served.

Grantees shall comply with the data entry requirements of AB 977, located at Welfare and Institutions Code section 8256(d).
iii. Cal ICH usage of Reports
Pursuant to HSC Section 50254(b)(4), Council staff may use information reported directly from grantees and through statewide Homeless Data Integration System for the purposes of research and evaluation of grant performance, service pathways, and outcomes for people served. iv. Failure to Report
If the Grantee fails to provide any such report, Cal ICH may recapture any portion of the amount authorized by this Agreement with a 14-day written notification.
b) Evaluation
i. At Cal ICH's discretion, Grantees shall participate in a program evaluation regarding their implementation of ERF awards. To support this effort, Cal ICH will contract a third party to complete the evaluation. ii. Grantees are expected to be close partners with Cal ICH for this program evaluation and for all evaluative aspects of this Program. This means timely and accurate reporting, candid communication of success or challenges, and availability of persons, information, or materials. More specifically, Grantees must cooperate with Cal ICH or its designee as reasonably required to implement an evaluation plan. This includes providing or facilitating the collection of data and materials as reasonably requested by Cal ICH or its designee.
iii. For the purpose of evaluation, Cal ICH or its designee may visit sites related to the project and film, tape, photograph, interview, and otherwise document Grantee's operations during normal business hours and with reasonable Initial Herea,,-4 62
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advance notice. Cal ICH will comply with Grantee's site visit terms during any site visits.
iv. Grantees should maintain active data, documents, and filings in anticipation of this evaluation. Special care should be taken to organize and preseNe internal work products that guided implementation by the Grantee or subgrantee.
v. Grantees shall notify Cal ICH and provide copies of any reports or findings if Grantee conducts or commissions any third-party research or evaluation regarding their funded project.
vi. All terms and conditions that apply to reporting similarly apply to evaluation. c) Auditing
• Cal ICH reserves the right to perform or cause to be performed a financial audit. At Cal ICH request, the Grantee shall provide, at its own expense, a financial audit prepared by a certified public accountant. Should an audit be required, the Grantee shall adhere to the following conditions:
i) The audit shall be performed by an independent certified public accountant. ii) The Grantee shall notify Cal ICH of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by Cal ICH to the independent auditor's working papers. iii) The Grantee is responsible for the completion of audits and all costs of preparing audits.
iv) If there are audit findings, the Grantee must submit a detailed response acceptable to Cal ICH for each audit finding within 90 days from the date of the audit finding report.
5) Inspection and Retention of Records
a) Record Inspection
Cal ICH or its designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance under this Agreement. The Grantee agrees to provide Cal ICH, or its designee, with any relevant information requested. The Grantee agrees to give Cal ICH or its designee access to its premises, upon reasonable notice and during normal business hours, for the purpose of interviewing employees who might reasonably have information related to such records, and of inspecting and copying such Initial Her� 63
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books, records, accounts, and other materials that may be relevant to an investigation of compliance with the ERF laws, Cal ICH guidance or directives, and this Agreement.
b) Record Retention
The Grantee further agrees to retain all records described in subparagraph A for a minimum period of five (5) years after the termination of this Agreement.

If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been commenced before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues which arise from it.
c) Public Records Act
The grantees' application, this contract, and other documents related to the grant are considered public records, which are available for public viewing pursuant to the California Public Records Act.
6) Breach and Remedies
a) Breach of Agreement
Breach of this Agreement includes, but is not limited to, the following events:
i. Grantee's failure to comply with the terms or conditions of this Agreement. ii. Use of, or permitting the use of, Program funds provided under this Agreement for any ineligible activities.
iii. Any failure to comply with the deadlines set forth in this Agreement. b) Remedies for Breach of Agreement
In addition to any other remedies that may be available to Cal ICH in law or equity for breach of this Agreement, Cal ICH may, in a form and manner determined by Cal ICH:
i. Conduct a program monitoring which will include a corrective action plan (CAP) with findings, remedies, and timelines for resolving the findings. ii. Bar the Grantee from applying for future ERF funds; Initial Here� 64
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iv. Require the return of any unexpended ERF funds disbursed under this Agreement;
v. Require repayment of ERF funds disbursed and expended under this Agreement;
vi. Require the immediate return to Cal ICH of all funds derived from the use of ERF
vii. Seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or participation in the technical assistance in accordance with ERF requirements.
c) All remedies available to Cal ICH are cumulative and not exclusive. d) Cal ICH may give written notice to the Grantee to cure the breach or violation within a period of not less than 14 days.
7) Waivers
No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of Cal ICH to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of Cal ICH to enforce these provisions.
8) Nondiscrimination
During the performance of this Agreement, Grantee and its sub recipients shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, gender expression, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), genetic information, marital status, military and veteran status, denial of medical and family care leave or pregnancy disability leave, or any other characteristic protected by state or federal law. Grantees and Sub grantees shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its subrecipients shall comply with the provisions of California's laws against discriminatory practices relating to specific groups: the California Fair Employment and Housing Act (FEHA) (Gov. Code, Section 12900 et seq.); the regulations Initial Her�4 65
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promulgated thereunder (Cal. Code Regs., tit. 2, Section 11000 et seq.); and the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code, Section 11135 - 11139.5). Grantee and its subrecipients shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. 9) Conflict of Interest
All Grantees are subject to state and federal conflict of interest laws. Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Additional applicable statutes include, but are not limited to, Government Code Section 1090 and Public Contract Code Sections 10410 and 10411.
a) Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent Grantee with any State agency to provide goods or services.
b) Former State Employees: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelvemonth period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service.
c) Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the Political Reform Act of 1974 (Gov. Code, Section 81000 et seq.).
d) Representatives of a County: A representative of a county serving on a board, committee, or body with the primary purpose of administering funds or making funding recommendations for applications pursuant to this chapter shall have no financial interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county.

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City of Redding
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Certification of Compliance: By signing this Agreement, Grantee hereby certifies, under penalty of perjury under the laws of State of California, that it and its sub recipients will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, Section 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions:

Publish a statement notifying employees and subrecipients that unlawful manufacture distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, Grantees, or subrecipients for violations, as required by Government Code Section 8355, subdivision (a)(1).
a) Establish a Drug-Free Awareness Program, as required by Government Code Section 8355, subdivision (a)(2) to inform employees, Grantees, or sub recipients about all of the following:
i. The dangers of drug abuse in the workplace;
ii. Grantee's policy of maintaining a drug-free workplace; iii. Any available counseling, rehabilitation, and employee assistance program; and
iv. Penalties that may be imposed upon employees, Grantees, and subrecipients for drug abuse violations.
b) Provide, as required by Government Code Section 8355, subdivision (a)(3), that every employee and/or subrecipient that works under this Agreement:
i. Will receive a copy of Grantee's drug-free policy statement, and ii. Will agree to abide by terms of Grantee's condition of employment or subcontract.
11) Child Support Compliance Act
For any Contract Agreement in excess of $100,000, the Grantee acknowledges in accordance with Public Contract Code 7110, that:
a) The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of Initial Here� 67
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information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code; and
b) The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.
12) Special Conditions - Grantees/Subgrantee
The Grantee agrees to comply with all conditions of this Agreement including the Special Conditions set forth in Exhibit E. These conditions shall be met to the satisfaction of Cal ICH prior to disbursement of funds. The Grantee shall ensure that all Subgrantees are made aware of and agree to comply with all the conditions of this Agreement and the applicable State requirements governing the use of ERF.

Failure to comply with these conditions may result in termination of this Agreement. a) The Agreement between the Grantee and any Subgrantee shall require the Grantee and its Subgrantees, if any, to:
i. Perform the work in accordance with Federal, State and Local housing and building codes, as applicable.
ii. Maintain at least the minimum State-required worker's compensation for those employees who will perform the work or any part of it. iii. Maintain, as required by law, unemployment insurance, disability insurance, and liability insurance in an amount that is reasonable to compensate any person, firm or corporation who may be injured or damaged by the Grantee or any Subgrantee in performing the Work or any part of it. iv. Agree to include and enforce all the terms of this Agreement in each subcontract.
13) Compliance with State and Federal Laws, Rules, Guidelines and Regulations The Grantee agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, environmental protection, equal opportunity, fair housing, and all other matters applicable and/or related to the ERF program, the Grantee, its subrecipients, and all eligible activities.

Grantee shall also be responsible for obtaining any and all permits, licenses, and approvals required for performing any activities under this Agreement, including Initial Here� 68
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those necessary to perform design, construction, or operation and maintenance of the activities. Grantee shall be responsible for observing and complying with any applicable federal, state, and local laws, rules or regulations affecting any such work, specifically those including, but not limited to, environmental protection, procurement, and safety laws, rules, regulations, and ordinances. Grantee shall provide copies of permits and approvals to Cal ICH upon request. 14) Inspections
a) Grantee shall inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this Agreement.
b) Cal ICH reserves the right to inspect any work performed hereunder, including site visits, to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this Agreement.
c) Grantee agrees to require that all work that is determined based on such inspections not to conform to the applicable requirements be corrected and to withhold payments to the subrecipient until it is corrected. 15) Litigation
a) If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of Cal ICH, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are and shall be deemed severable.
b) The Grantee shall notify Cal ICH immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or Cal ICH, and shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of Cal ICH.

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Encampment Resolution Funding Program (ERF-3-L)
Standard Agreement

EXHIBIT E

SPECIAL TERMS AND CONDITIONS
1) All proceeds from any interest-bearing account established by the Grantee for the deposit of funds, along with any interest-bearing accounts opened by sub recipients to the Grantee for the deposit of funds, must be used for eligible activities. Grantees must maintain records of all expenditures of the proceeds from these interestbearing accounts for five (5) years. Cal ICH reserves the right to perform or cause to be performed a financial audit on the use of proceeds from interest bearing accounts.
2) Grantee shall utilize its local Homeless Management Information System (HMIS) to track ERF projects, services, and clients served. Grantee will ensure that HMIS data are collected in accordance with applicable laws and in such a way as to identify individual projects, services, and clients that are supported by funding (e.g., by creating appropriate - ERF specific funding sources and project codes in HMIS).
3) Grantee shall participate in and provide data elements, including, but not limited to, health information, in a manner consistent with federal law, to the statewide Homeless Management Information System (known as the Homeless Data Integration System or "HDIS"), in accordance with their existing Data Use Agreement entered into with the Council, if any, and as required by Health and Safety Code Section 50254. Any health information provided to, or maintained within, the statewide Homeless Management Information System shall not be subject to public inspection or disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). For purposes of this paragraph, "health information" means "protected health information," as defined in Part 160.103 of Title 45 of the Code of Federal Regulations, and "medical information," as defined in subdivision U) of Section 56.05 of the Civil Code. The Council may, as required by operational necessity, amend or modify required data elements, disclosure formats, or disclosure frequency. Additionally, the Council, at its discretion, may provide Grantee with aggregate reports and analytics of the data Grantee submits to HDIS in support of the Purpose of this Agreement and the existing Data Use Agreement. 4) Grantee agrees to accept technical assistance as directed by Cal ICH or by a contracted technical assistance provider acting on behalf of Cal ICH. Grantee will report to Cal ICH on programmatic changes the Grantee will make as a result of the technical assistance and in support of their grant goals.

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5) Grantee should establish a mechanism for people with lived experience of homelessness to have meaningful and purposeful opportunities to inform and shape all levels of planning and implementation, including through opportunities to hire people with lived experience.
6) Cal ICH maintains sole authority to determine if a Grantee is acting in compliance with the program objectives and may direct grantees to take specified actions or risk breach of this Agreement. Grantees will be provided reasonable notice and Cal ICH's discretion in making these determinations are absolute and final.

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CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions:
(1) Adopt Resolution approving and adopting the 23rd Amendment to City Budget Resolution No. 2023-060 appropriating $8,354,960 of Encampment Resolution Funding Lookback Disbursement Round 3 (ERF-3-L) funds and adding a full-time, Housing Specialist I/II position to the Housing Division;
(2) Authorize the City Manager to negotiate a Development Funding Agreement with the Good News Rescue Mission for maintenance improvements in an amount not to exceed $500,000;
(3) Direct staff to prepare a request for proposals for eligible scope of work items as identified on the attached Grant Expenditure Summary which includes housing case managers; interim housing/motel room partnerships; day resource center purchase; and day resource center director and case manager; and prioritize the release of each request for proposal; and
(4) Determine that allocating grant funding is not considered a project under the California Environmental Quality Act.

Fiscal Impact
The Encampment Resolution Lookback Disbursement Funding (ERF-3-L) provides $8,354,955 in grant funds to the City of Redding (City) as detailed in the California Department General Services – Business, Consumer Services and Housing Agency (BCSH) Standard Agreement.

Administration and activity delivery costs of $473,455 will assist in funding associated staff contract administration costs and an additional staff person. There is no impact to the General Fund, and the ERF-3-L grant does not require matching funds.

MEETING DATE: November 21, 2023
ITEM NO. 9.2(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.2(a)--Appropriate Encampment Resolution Funding (ERF) 3-L Award Steve Bade, Assistant City
Manager
Packet Pg. 174 Packet Pg. 140 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Services Contract) Report to Redding City Council November 15, 2023
Re: 9.2(a)--Appropriate Encampment Resolution Funding (ERF-3-L) Award Page 2 Alternative Action
The City Council (Council) could choose not to give staff direction to prepare Request for Proposals (RFPs) and staff would work within the Standard Agreement and funding guidelines to implement the ERF-3-L funds. Or, Council could provide alternate direction to staff. If Council redirects funds within categories or changes a category, ERF-3-L funds may be lost or reduced by the BCSH.

Background/Analysis
On February 21, 2023, Council authorized and approved Housing Division staff to submit a grant application through the BCSH for the ERF-3-L Program. The City’s initial application was denied. However, staff revised the application with a focus on a cohesive project that provided support services to specific encampments connected to a day resource center and was awarded $8,354,955 in ERF-3-L grant funds.

On September 21, 2023, a Standard Agreement detailing the budget, scope of work, and terms and conditions of the funding was executed. The ERF-3-L grant’s intent is to provide outreach, supportive services and connection to shelter for those living in the Linden/Mercy Canyon, Progress/Technology Way Encampments (Encampments) or the Good News Rescue Mission area.

As proposed in the grant application, the City’s primary means of providing outreach and services is through the Crisis Intervention Response Team (CIRT) officers, coupled with housing case manager services. The case managers will assist CIRT in their efforts and provide more intensive services by connecting unsheltered persons to shelter and housing options along with other community resources such as employment options, public benefits, medical or dental care or drug and alcohol abuse rehabilitation. In addition, the grant will fund sanitation support for the encampments and case managers with housing placement support assistance that includes:
deposits, application fees, and furnishings for no more than 50 people.

ERF-3-L funding also specifically provides for maintenance improvements to the Good News Rescue Mission (GNRM). These maintenance needs include a new roof, kitchen upgrade and remodel, laundry and privacy screening improvements, if the budget allows. The City Manager and staff will work with the GNRM to determine the full scope of the maintenance improvements and will negotiate a development funding agreement to set forth the terms and conditions of the grant funding and GNRM project.

Lastly, the ERF-3-L award includes funding for specific categories that include: interim housing/motel room partnerships; day resource center purchase and rehabilitation; and a day resource center director and case manager to support the center for the first three years of operation. At the Council’s discretion, each one of these categories can be the subject of a request for proposal that can be drafted by staff and reviewed and approved by the Council and/or the City Manager – ERF-3-L funding allows either path for selection.

Over the last year, the City has strived to provide leadership surrounding the unsheltered crisis in our community. As such, staff has diligiently competed for grants to help the community assist this vulnerable population, but with more grants, comes more workload and responsibility. The Housing Division’s goal is to continue its level of service to the community while also providing Packet Pg. 175 Packet Pg. 141 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Services Contract) Report to Redding City Council November 15, 2023
Re: 9.2(a)--Appropriate Encampment Resolution Funding (ERF-3-L) Award Page 3 succession planning for three possible staff retirements within the next two years. As such, additional staff is needed to support the Housing Division’s projects, programs, and goals. Staff requests the addition of one, full-time Housing Specialist position to assist with the day-to-day administration of the Encampment grant award. With the addition of this position, the Housing Division will have 20 positions, consisting of 19.5 full-time and one ½ time employees.

Environmental Review
This is not a project as defined under California Environmental Quality Act, and no further action is required. A National Environmental Policy Act review is not necessary as these are State of California and not Federal funds.

Council Priority/City Manager Goals
• 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
^Budget Resolution
^Grant Expenditure Summary
Standard Agreement (C-10048)
Packet Pg. 176 Packet Pg. 142 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Services Contract) Packet Pg. 143 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Services Contract) Packet Pg. 144 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Services Contract) Packet Pg. 145 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 146 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 147 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 148 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 149 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 150 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 151 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 152 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 153 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 154 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 155 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 156 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 157 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 158 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 159 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 160 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 161 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 162 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 163 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 164 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 165 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 166 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 167 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 168 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 169 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 170 Attachment: Staff Report - November 21, 2023 (4.2(b)--Good News Rescue Mission Case Management Packet Pg. 171 Attachment: Staff Report - April 2, 2024 (4.2(b)--Good News Rescue Mission Case Management Services Contract) Packet Pg. 172 Attachment: Staff Report - April 2, 2024 (4.2(b)--Good News Rescue Mission Case Management Services Contract) Packet Pg. 173 Attachment: Staff Report - April 2, 2024 (4.2(b)--Good News Rescue Mission Case Management Services Contract) Packet Pg. 174 Attachment: Staff Report - April 2, 2024 (4.2(b)--Good News Rescue Mission Case Management Services Contract) Packet Pg. 175 Attachment: Staff Report - April 2, 2024 (4.2(b)--Good News Rescue Mission Case Management Services Contract)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve the continuation of the City of Redding Electric Utility’s community sponsorship program as defined in Standard Operating Procedure (SOP-650) to ensure staff is using a structured approach to awarding sponsorship requests.

Fiscal Impact
There is no fiscal impact as sponsorship funding is included in the approved Fiscal Year 2024-25 budget. Since inception in 2017, Redding Electric Utility (REU) sponsorships have maintained a City Council (Council) annually approved budget of $100,000. Future funding will be requested as part of the biennial budget process.

Alternative Action
The Council could choose to eliminate, increase, decrease, or maintain the annual sponsorship budget.

Background/Analysis
Since 2017, REU has operated a structured sponsorship program designed to support community-based initiatives. Each year, the program receives a variety of requests from nonprofit organizations, event organizers, and community groups enabling REU to actively contribute to the community's well-being while reinforcing its core values.

The program is managed through the attached Standard Operating Procedure (SOP-650) to ensure staff is using a structured approach to awarding sponsorship requests.

MEETING DATE: November 5, 2024
ITEM NO. 4.5(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(a)--REUs Community Sponsorship Program
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 176
Report to Redding City Council October 30, 2024
Re: 4.5(a)--Community Sponsorship Program Page 2
A primary focus of the sponsorship program is workforce development, particularly in Science, Technology, Engineering and Math (STEM) related education and training. By supporting initiatives that promote STEM skillsets, REU equips local citizens, especially youth, with critical skills for long-term career success. This investment not only benefits individuals but also contributes to a sustainable workforce essential for the community’s economic future. The recently approved sponsorships is provided in the attached.

REU’s sponsorship criteria ensure that each request is evaluated based on its alignment with the utility’s mission and community needs. This structured approach guarantees fair and transparent funding decisions, maximizing the program's positive impact.

Overall, the sponsorship program is a tool for REU to support the community and invest in the future success of its workforce. It has consistently received positive feedback from stakeholders and continues to provide significant value through direct support and long-term partnerships.

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
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Attachments
^SOP-650 REU Sponsorship Program
^Sponsorships FYE 2023 & 2024
Packet Pg. 177

STANDARD OPERATING PROCEDURE
Title:

REU Sponsorship Program
SOP No: SOP-650
Ver. No: 1.0
Date: 08/30/2017

CONTENTS

1. Policy Statement...................................................................................................................................2

2. Purpose .................................................................................................................................................2

3. Scope.....................................................................................................................................................2

4. Definition of Sponsorship......................................................................................................................2

5. Eligibility Guidelines..............................................................................................................................2

6. Assessment Guidelines .........................................................................................................................3

7. Sponsorship Screening Guidelines........................................................................................................3

8. General Restrictions..............................................................................................................................3

9. Program Administration and Guidelines...............................................................................................4

10. Customer Services.............................................................................................................................4

10.1. Sponsorship Notification...........................................................................................................4

10.2. Granting Requests and Final Decision Making..........................................................................4

11. Sponsorship Budget..........................................................................................................................4

12. Internal Control Procedures..............................................................................................................5

13. Revision History ................................................................................................................................5

14. Approval............................................................................................................................................5 Exhibit A ........................................................................................................................................................6 Packet Pg. 178 Attachment: ^SOP-650 REU Sponsorship Program (4.5(a)--Community Sponsorship Program)

STANDARD OPERATING PROCEDURE
Title:

REU Sponsorship Program
SOP No: SOP-650
Ver. No: 1.0
Date: 08/30/2017

1. Policy Statement
It is the policy of Redding Electric Utility (REU) to provide a transparent sponsorship program in the interests of public accountability. This program provides procedures for staff as well as information regarding potential sponsorship applicants.

In addition to supporting business goals and objectives, expenditures made by REU to sponsor applicable entities or events must agree with and conform to existing City of Redding policies including, but not limited to: 1) Conduct and Honesty Policy, 2) Employee Gift Policy, and 3) the Distribution of Tickets and Passes Policy. Expenditures must be tracked and/or recorded, with adequate checks and balances to ensure that the purpose of the expenditure is carried out.

2. Purpose
REU has a strong tradition of community involvement, working to advance the sustainability and prosperity of the Redding area, as well as improving the community we serve. Strategic collaborations with community organizations through sponsorships can be an effective channel to communicate and connect with our customers.

3. Scope
This policy applies to all REU full-time and temporary employees and covers any sponsorship paid for using REU funds.

4. Definition of Sponsorship
For the purpose of this policy, “sponsorship" is defined as a mutually beneficial relationship between REU and another entity, whereby REU contributes funds, materials or services in return for recognition, acknowledgement or other promotional consideration. It is not the same as philanthropy.

5. Eligibility Guidelines
A REU sponsorship should support an organization or event that advances the interests of REU and its customers. Generally, programs should directly benefit a segment of REU customers, stakeholders, and/or the communities in REU's service territory; be tax-exempt under Section 501(c) of the Internal Revenue Code. With Director approval, REU may sponsor organizations or events that vary from these guidelines.

Packet Pg. 179 Attachment: ^SOP-650 REU Sponsorship Program (4.5(a)--Community Sponsorship Program)

STANDARD OPERATING PROCEDURE
Title:

REU Sponsorship Program
SOP No: SOP-650
Ver. No: 1.0
Date: 08/30/2017

6. Assessment Guidelines
Sponsorships that are aligned with REU's role in the community, advance REU's business interests, or are consistent with REU's goals and objectives are desirable. Examples are organizations or events that make a positive contribution in one or more or the following areas:
• Safe, energy efficient use of electricity.
• Long-term economic or business development for the City of Redding. • Improved customer relations, increased customer awareness and/or visibility of REU. • Programs to improve the quality of our environment; promote environmental education, conservation and preservation; or support the development of cleaner sources of energy. • Programs to improve the quality of life for members of the community through community support programs and organizations.
• Community development and civic engagement initiatives. • Education programs that promote math, science, engineering, and technology; improve workforce skills; or encourage individual development through scholarships, mentoring, and internships.

7. Sponsorship Screening Guidelines
In addition to the assessment guidelines, requests for sponsorship may also be screened on the following criteria:
• Number of people served; REU strives for broad-based community impact in its sponsorship support.
• Programmatic strength and financial viability.
• Partnerships that promote collaboration, reduce duplication of services, and increase agency capacity.
• Past funding; specifically, organizations will not typically be funded multiple times in a calendar year.

8. General Restrictions
In general, REU will not sponsor events or activities related to the following:
• Organizations not qualified as a nonprofit, tax-exempt organization under section 501(c) of the Internal Revenue Code
• Political or partisan organizations, candidates or events. • Religious or fraternal activities.
• Individuals or unincorporated groups or bodies.

Packet Pg. 180 Attachment: ^SOP-650 REU Sponsorship Program (4.5(a)--Community Sponsorship Program)

STANDARD OPERATING PROCEDURE
Title:

REU Sponsorship Program
SOP No: SOP-650
Ver. No: 1.0
Date: 08/30/2017

9. Program Administration and Guidelines
All requests for REU participation in promotions, special events and sponsorships must be received in writing, accompanied with all the information requested in Exhibit A. Following the review of each request for sponsorship, the applicant and/or submitting organization will be notified in writing as to whether the request is approved or declined.

10. Customer Services
The Customer Services Group is assigned to administer the sponsorship program and will meet at least quarterly with the Leadership Team to review sponsorship requests, progress of implementation, policy issues and provide updates and recommendations to the program.

Customer Services will act on behalf of the Leadership Team to process and approve requests that meet the established criteria, reject requests that fail to meet the established criteria, and provide recommendations to the Committee on requests that need additional review and discussion. If an application is received that relates to a specific division and/or business unit, Customer Services will work with the respective area for review and input to the Sponsorship Review Committee.

10.1. Sponsorship Notification
Following the review of each request for sponsorship, Customer Services will notify the applicant and/or submitting organization as to whether the request is approved or declined. For any sponsorship request that is declined, the rationale for the decision will be included.

10.2. Granting Requests and Final Decision Making
The Leadership Team is authorized to approve sponsorship requests that meet the guidelines listed in this policy by majority vote if sufficient funds are available in the sponsorship budget. Leadership Team members who may have a conflict of interest with any sponsorship applicant shall abstain from voting or promoting such entity or event. If sponsorship requests exceed available funds, the Leadership Team will determine which requests to approve or decline.

11. Sponsorship Budget
Decisions regarding all sponsorships should be made based on the availability of funds, and whether the request is in line with the guidelines outlined above. An annual budget for REU sponsorships will be established and included in the REU budget.

Packet Pg. 181 Attachment: ^SOP-650 REU Sponsorship Program (4.5(a)--Community Sponsorship Program)

STANDARD OPERATING PROCEDURE
Title:

REU Sponsorship Program
SOP No: SOP-650
Ver. No: 1.0
Date: 08/30/2017

12. Internal Control Procedures
Customer Services will maintain a record of all sponsorship requests to include the organization name, type, and amount of sponsorship and disposition/use of the sponsorship. In addition, the PA will maintain records of all REU-sponsored activities, ensuring that all financial information is documented in writing and retained in the file with monetary sponsorship receipts and copy of payment for a period of at least two years.

The Financial Services Division will periodically audit the program to provide financial oversight and ensure adherence to the policy guidelines as stated above. The Financial Services Division will provide an annual financial report to the Leadership Team at the end of each fiscal year.

13. Revision History
Version Description Date

1.0 New document 08/30/2017

14. Approval
Name, Title Signature Date
Dan Beans
Interim E/U Director /s/ Dan Beans 8/30/2017
Packet Pg. 182 Attachment: ^SOP-650 REU Sponsorship Program (4.5(a)--Community Sponsorship Program)

STANDARD OPERATING PROCEDURE
Title:

REU Sponsorship Program
SOP No: SOP-650
Ver. No: 1.0
Date: 08/30/2017

Exhibit A
Sponsorship Applicant Requirements

1. Organization name

2. Institution type

3. Event name (if applicable)

4. Event date (if applicable)

5. Contact name

6. Mailing address

7. Email address

8. Phone number

9. Tax ID form (W-9)

10. Sponsorship type (table, booth, conference, volunteer, other)

11. Primary goal of organization/event

12. Proposed sponsorship amount(s)

13. Benefits to REU (acknowledgement, advertising, etc.)

14. Past two-year history of REU sponsorships
In addition, it is recommended that the applicant attach all marketing materials and details of the requested sponsorship.

Packet Pg. 183 Attachment: ^SOP-650 REU Sponsorship Program (4.5(a)--Community Sponsorship Program) Sponsorships FYE 23 & 24
Organization Name Event Name Amount
Never Forgotten Games - Redding Police Officers' Association Never Forgotten Games $1,500.00Mercy Foundation North Regional Cancer Center $12,500.00Shasta Bike Month and Challenge 2024 Shasta Bike Month & Challenge $2,000.00Redding Police Explorers Science Bowl $600.00Youth Violence Prevention Council (Youth Options Shasta) Shasta Youth Leadership Camp (SYLC) $1,000.00College OPTIONS KinderCollege Day $500.00Shasta Environmental Alliance Redding Earth Day Festival $1,600.00Society of Women Engineers Wow! That's Engineering $1,000.00Girls Inc. of the Northern Sacramento Valley $3,500.00Redding Trail Alliance via the Bigfoot Adventure Challenge Bigfoot Adventure Challenge $2,500.00Redding Chamber of Commerce 2024 Community Funding Partnership/Funding Workforce Partner $7,500/$7,500Turtle Bay Exploration Park Discovery Camps at Turtle Bay $5,000.00ShiningCare Gatekeeper Shining Affair $2,000.00Shasta Historical Society Annual Covered Wagon Publication $5,000.00Turtle Bay Exploration Park REU Discount Days at Turtle Bay $10,000.00Shasta County Office of Education 1000Operation Blue Santa Operation Blue Santa 5000Redding Recreation Redding Recreation Events (The Santa Experience, Hogwarts Expre 3500 Shasta Library Foundation Shasta Library Foundation 'A Novel Affair' Gala 1500KIXE TV PBS 2023 KIXE Holiday Auction 1,000Redding Health Expo Redding Health Expo 5000NorCal Think Pink NorCal Think Pink Calendar sorting & Bag Stuffing $500Redding Active 20-30 club Redding Lighted Christmas Parade $1,000Shasta County Office of Education io10 STEM Career Day 5,000California Soccer Park $9,000Mercy Foundation North Festival of Trees $1,000College OPTIONS College Quest -- college fair $500 Packet Pg. 184
Attachment: ^Sponsorships FYE 2023 & 2024 (4.5(a)--Community Sponsorship Program)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Award Bid Schedule No. 5516, 200-Amp Padmount Sectionalizing Enclosures and Riser Kits for the City of Redding Electric Utility to OneSource Supply Solutions in the amount of $362,376.60, for installation of infrastructure required to maintain reliable electric service.

Fiscal Impact
Adequate funding is available in Redding Electric Utility’s (REU) current biennial General Systems Improvements capital budget, which includes purchases for 200-Amp Padmount Sectionalizing Enclosures and Riser Kits. These costs include the annual recurring expenditures for installing infrastructure required to maintain reliable electric service.

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

Background/Analysis
This bid to purchase 200-Amp Padmount Sectionalizing Enclosures and Riser Kits allows REU to order enclosures and riser kits that are essential to support REU’s residential and commercial development, provide emergency replacement availability for existing facilities, and support planned infrastructure replacement projects. Their availability will contribute to increased system reliability.

On September 11, 2024, staff opened bid proposals for Bid Schedule No. 5516. Based on cost analysis and product quality, staff recommends awarding the bid to OneSource Supply Solutions, the most responsive bidder, for a price of $362,376.60.

MEETING DATE: November 5, 2024
ITEM NO. 4.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(b)--Award of Bid Schedule No. 5516, 200-Amp Padmount Sectionalizing Enclosures and Riser Kits
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 185
Report to Redding City Council October 30, 2024
Re: 4.5(b)--Bid Schedule No. 5516, 200-Amp Padmount Sectionalizing Enclosures Page 2 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 agenda item is a routine operational item.

Attachments
^Bid Tab 5516
Packet Pg. 186

CITY OF REDDING NASH, TYLER
BID SCHEDULE NO.

Cost (Evaluated) Cost (Evaluated) Cost (Evaluated)

N/A N/A
September 11, 2024
Anixter OneSource Supply Solutions Furnish 200 Amp Padmount Sectionalizing Enclosures and Riser Kits 5516
$139,750.00
No Bid Item 2 $337,880.35
$24,497.25
Addendum Acknowledged
PURCHASING DIVISION‐TABULATION OF BIDS
$149,881.87 $362,376.60
$10,131.87

DESCRIPTION
Sales Tax 7.25%
Net Cost Delivered Total
Subtotal (Bid Group)

DATE OF OPENING
3:00 P.M.

TIME OF OPENING
Packet Pg. 187
Attachment: ^Bid Tab 5516 (4.5(b)--Bid Schedule No. 5516, 200-Amp Padmount Sectionalizing

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following relative to Bid Schedule No. 5514, Single-Phase, Pole-Type Transformers for the City of Redding Electric Utility:
(1) Award to OneSource Supply Solutions (OneSource) for an annual evaluated price of $244,696.24, including sales tax;
(2) Authorize the Purchasing Officer to extend the bid award annually with OneSource through August 31, 2028, if mutually agreeable, with all terms and conditions remaining the same and price adjustments in direct proportion to a Producer Price Index; and (3) Authorize the City Manager, or designee, to approve an additional $60,000 to the bid award as a contingency per fiscal year.

Fiscal Impact
Adequate funding is available in Redding Electric Utility’s (REU) current biennial General Systems Improvements capital budget, which includes purchases of transformers. These costs include the annual recurring expenditures for installing infrastructure required to maintain reliable electric service. Future transformer costs will be included in the biennial budget planning process.

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

MEETING DATE: November 5, 2024
ITEM NO. 4.5(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(c)--Bid Schedule No. 5514, Single-Phase Pole-Type Transformers Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 188
Report to Redding City Council October 31, 2024
Re: 4.5(c)--Bid Schedule No. 5514, Single-Phase Pole-Type Transformers Page 2 Background/Analysis
This routine annual bid to purchase transformers allows REU to order materials as needed based on evaluated quantities and warehouse inventory. These transformers are necessary to support REU’s residential and commercial development and provide emergency replacement availability for existing facilities. These transformers are also required to support REU’s planned infrastructure replacement projects, contributing to increased system reliability.

Transformers are purchased based on two criteria – purchase price and efficiency. The initial savings from a less costly transformer can be lost if the transformer is inefficient. Inefficiency results in much higher cost for energy losses increasing the life cycle cost of the unit. Bidders are made aware of this methodology used in bid evaluations.

On September 19, 2024, staff opened eight bid proposals and, after thorough analysis, recommended awarding the contract to OneSource. The bid solicitation clearly stated that the award would be contingent upon reference checks and variances.

The lowest bidder, PulseMac, provided references that could not verify lead times or product quality, as they had not yet received their shipments. Given the high liability risk and not meeting the minimum requirements to the City, staff determined that this was sufficient justification to move to the next lowest bidder, OneSource.

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 agenda item is a routine operational item.

Attachments
^Bid Tab 5514
Packet Pg. 189
Bid Schedule
5514
Item Qty
KVA
Size
Unit Price
w/out tax
Line Total
w/out tax
No Load
Core Loss
($8.90/w)
Full Load
Winding
Loss
($0.75/w)
Unit Price +
No Load +
Full Load
w/out tax
Evaluated
Line Total *
w/out tax
1 20 15 2,015.00 $ $ 40,300.00 $400.50 $144.75 $2,560.25 $51,205.00 2 20 25 2,430.00 $ $ 48,600.00 $623.00 $202.50 $3,255.50 $65,110.00 3 20 37.5 2,750.00 $ $ 55,000.00 $845.50 $288.00 $3,883.50 $77,670.00 4 15 50 3,075.00 $ $ 46,125.00 $979.00 $371.25 $4,425.25 $66,378.75 5 1 75 3,900.00 $ $ 3,900.00 $1,246.00 $540.00 $5,686.00 $5,686.00 6 1 100 4,675.00 $ $ 4,675.00 $1,468.50 $690.75 $6,834.25 $6,834.25 $ 198,600.00 $ 272,884.00
$ 14,398.50 $ 19,784.09
$ 292,668.09 212,998.50 $
1 20 15 2,509.00 $ $ 50,180.00 $ 409.40 $ 143.25 $ 3,061.65 $ 61,233.00 2 20 25 2,692.00 $ $ 53,840.00 $ 569.60 $ 225.75 $ 3,487.35 $ 69,747.00 3 20 37.5 3,082.00 $ $ 61,640.00 $ 765.40 $ 309.00 $ 4,156.40 $ 83,128.00 4 15 50 3,529.00 $ $ 52,935.00 $ 952.30 $ 387.00 $ 4,868.30 $ 73,024.50 5 1 75 4,283.00 $ $ 4,283.00 $ 1,326.10 $ 518.25 $ 6,127.35 $ 6,127.35 6 1 100 5,277.00 $ $ 5,277.00 $ 1,655.40 $ 771.75 $ 7,704.15 $ 7,704.15 $ 228,155.00 $ 300,964.00
$ 16,541.24 $    21,819.89
$ 244,696.24 $  322,783.89
1 20 15 2,280.00 $ 45,600.00 $ 445.00 $ 131.25 $ 2,856.25 $ 57,125.00 $ 2 20 25 2,980.00 $ 59,600.00 $ 694.20 $ 176.25 $ 3,850.45 $ 77,009.00 $ 3 20 37.5 3,430.00 $ 68,600.00 $ 863.30 $ 267.00 $ 4,560.30 $ 91,206.00 $ 4 15 50 3,860.00 $ 57,900.00 $ 1,023.50 $ 351.00 $ 5,234.50 $ 78,517.50 $ 5 1 75 4,550.00 $ 4,550.00 $ 1,379.50 $ 489.75 $ 6,419.25 $ 6,419.25 $ 6 1 100 5,460.00 $ 5,460.00 $ 1,468.50 $ 685.50 $ 7,614.00 $ 7,614.00 $ $ 241,710.00 $ 317,890.75
$ 17,523.98 $    23,047.08
$ 259,233.98 $  340,937.83
AMEK A&S Inc / Origin Korea
Sales Tax
Net Cost
PulseMac Solutions / Origin China
Sales Tax
Net Cost
Date of Opening
OneSource Supply Solutions / Origin Korea
Sales Tax
Total Evaluated
Total Evaluated
Total Evaluated
Evaluated Total w/Losses

PURCHASING DIVISION - DETAILED TABULATION

OF BIDS- SIX LOWEST BIDS ONLY
Single-Phase, Pole Type Dist Transformers
Sales Tax
Sales Tax
Evaluated Total w/ Losses
Thursday, September 19, 2024
Net Cost
Sales Tax
Evaluated Total w/ Losses
Packet Pg. 190 Attachment: ^Bid Tab 5514 (4.5(c)--Bid Schedule No. 5514, Single-Phase Pole-Type Transformers) Bid Schedule
5514
Item Qty
KVA
Size
Unit Price
w/out tax
Line Total
w/out tax
No Load
Core Loss
($8.90/w)
Full Load
Winding
Loss
($0.75/w)
Unit Price +
No Load +
Full Load
w/out tax
Evaluated
Line Total *
w/out tax
Date of Opening

PURCHASING DIVISION - DETAILED TABULATION

OF BIDS- SIX LOWEST BIDS ONLY
Single-Phase, Pole Type Dist Transformers
Thursday, September 19, 2024
1 20 15 2,718.84 $ 54,376.80 $ 53.00 $ 160.00 $ $ 3,310.54 $ 66,210.80 2 20 25 3,013.68 $ 60,273.60 $ 72.00 $ 266.00 $ $ 3,853.98 $ 77,079.60 3 20 37.5 3,336.60 $ 66,732.00 $ 92.00 $ 385.00 $ $ 4,444.15 $ 88,883.00 4 15 50 3,551.32 $ 53,269.80 $ 115.00 $ 480.00 $ $ 4,934.82 $ 74,022.30 5 1 75 6,807.60 $ 6,807.60 $ 125.00 $ 795.00 $ $ 8,516.35 $ 8,516.35 6 1 100 7,345.80 $ 7,345.80 $ 170.00 $ 910.00 $ $ 9,541.30 $ 9,541.30 $ 248,805.60 $ 324,253.35
$ 18,038.41 $    23,508.37
$ 266,844.01 $  347,761.72
Audit
1 20 15 2,759.24 $ 55,184.80 $ 400.50 $ 112.50 $ 3,272.24 $ $ 65,444.80 2 20 25 3,180.64 $ 63,612.80 $ 534.00 $ 202.50 $ 3,917.14 $ $ 78,342.80 3 20 37.5 3,802.24 $ 76,044.80 $ 623.00 $ 300.00 $ 4,725.24 $ $ 94,504.80 4 15 50 4,192.84 $ 62,892.60 $ 712.00 $ 382.50 $ 5,287.34 $ $ 79,310.10 5 1 75 5,490.64 $ 5,490.64 $ 1,068.00 $ 450.00 $ 7,008.64 $ $ 7,008.64 6 1 100 6,227.04 $ 6,227.04 $ 1,424.00 $ 532.50 $ 8,183.54 $ $ 8,183.54 $ 269,452.68 $ 332,794.68
$ 19,535.32 $    24,127.61
$ 288,988.00 $  356,922.29
1 20 15 2,317.00 $ 46,340.00 $ 391.60 $ 162.75 $ 2,871.35 $ 57,427.00 $ 2 20 25 3,514.00 $ 70,280.00 $ 195.80 $ 216.75 $ 3,926.55 $ 78,531.00 $ 3 20 37.5 4,680.00 $ 93,600.00 $ 258.10 $ 259.50 $ 5,197.60 $ 103,952.00 $ 4 15 50 5,244.00 $ 78,660.00 $ 320.40 $ 365.25 $ 5,929.65 $ 88,944.75 $ 5 1 75 7,675.00 $ 7,675.00 $ 560.70 $ 407.25 $ 8,642.95 $ 8,642.95 $ 6 1 100 6,930.00 $ 6,930.00 $ 1,415.10 $ 686.25 $ 9,031.35 $ 9,031.35 $ $ 303,485.00 $ 346,529.05
$ 22,002.66 $    25,123.36
Net Cost $ 325,487.66 $  371,652.41
Net Cost
ULS Corporate Inc / Origin Korea
General Pacific Inc / Origin USA
Sales Tax
Net Cost
Sales Tax
MVA Power Inc / Origin Not Listed Losses Error/ Check & Advise Sales Tax
Evaluated Total w/ Losses
Total Evaluated
Total Evaluated
Total Evaluated
Sales Tax
Sales Tax
Evaluated Total w/ Losses
Sales Tax
Evaluated Total w/ Losses
Packet Pg. 191 Attachment: ^Bid Tab 5514 (4.5(c)--Bid Schedule No. 5514, Single-Phase Pole-Type Transformers)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Approve and ratify submission of an application for the U.S. Department of Justice 2024 Edward Byrne Memorial Justice Assistance Grant in the amount of $39,932 to fund the leasing of five additional body worn cameras;
(2) Authorize the City Manager to accept the grant if it is awarded; and (3) Authorize the City Manager, or designee, to sign the grant application's Certifications and Assurances signifying that the governing body was notified of the application and citizens were provided the opportunity to comment on the application.

Fiscal Impact
This grant provides supplemental funding to the Redding Police Department (RPD). There is no negative General Fund impact by applying for and accepting this grant funding.

Alternative Action
The City Council could choose not to approve the grant application. RPD would lose the opportunity to purchase needed equipment.

Background/Analysis
RPD is scheduled to receive funding from the U.S. Department of Justice 2024 Edward Byrne Memorial Justice Assistance Grant. This is a formula (block) grant through which RPD will be awarded $39,932. These funds are usually offered on an annual basis, but the amount and application deadlines vary from year-to-year. The grant application deadline was October 22, 2024, and the application has already been submitted online.

MEETING DATE: November 5, 2024
ITEM NO. 4.9(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.9(a)--Affirm submission of an application for the U.S. Department of Justice 2024 Edward Byrne Memorial Justice Assistance Grant to provide equipment for the Redding Police Department.

Brian Barner, Chief of Police
Packet Pg. 192
Report to Redding City Council October 30, 2024
Re: 4.9(a)--2024 JAG Grant Page 2
Prior to the utilization of these funds, the City of Redding (City) must make the application available for review by the governing body and must allow an opportunity for comments from citizens. Attached is a Utilization Plan explaining how the funds will be expended.

RPD requests that the funds this year be used for five additional body worn cameras (BWC). In August 2023, a lease agreement was entered into for BWCs. While the original agreement was for the total number of sworn personnel in the department, it was determined that non-sworn personnel that work in the field (Community Service Officers, Community Work Program Officers) need to be issued cameras as well. Since the administrative and detective command staff as well as the detectives are not regularly in the field, the majority of those cameras were deployed to those non-sworn staff and a pool of cameras was created for the detectives to use when needed. While cameras are made available to the detectives on an as needed basis, it is not an ideal situation. This requires staff to sign in to one of the pool cameras with their credentials when checked out which takes time and can cause confusion if personnel forget to do this. With the current BWC count, when all detectives are out in the field, some do not have them. The additional BWCs will help alleviate this problem.

Environmental Review
This grant is not defined under 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.” Attachments
City of Redding Project Narrative - JAG 2024
Packet Pg. 193
1 REDDING POLICE DEPARTMENT
PROJECT NARRATIVE 2024 JAG FUNDING
The City of Redding Police Department (RPD) will use the FY 2024 JAG funds in the amount of $39,932 for additional body worn cameras (BWC). RPD entered into a lease agreement for BWCs that started in August 2023. While the original agreement was for the total number of sworn personnel in the department, it was determined that non-sworn personnel that work in the field (Community Service Officers, Community Work Program Officers) need to be issued cameras as well. Since the administrative and detective command staff as well as the detectives are not regularly in the field, the majority of those cameras were deployed to those non-sworn staff and a pool of cameras was created for the detectives to use when needed. While cameras are made available to the detectives on an as needed basis, it is not an ideal situation. This requires staff to sign in to one of the pool cameras with their credentials when checked out which takes time and can cause confusion if personnel forget to do this. When all detectives are out in the field, with the current BWC count, some do not have them. Additional devices will help to alleviate the issue.

For years, the Redding City Council had desired to obtain body worn cameras for RPD but due to financial constraints, it wasn’t possible until 2023. It was Council’s desire to ensure transparency to the community and to protect the officers. Since the BWC have been implemented there have been several incidents where footage was released to the public to clear up misinformation that was circulating on social media. Adding additional cameras will support the Council’s desire for the program. Since inception, administrative staff time has been significantly reduced by reducing frivolous complaints that are quickly resolved by viewing the BWC footage.

Packet Pg. 194 Attachment: City of Redding Project Narrative - JAG 2024 (4.9(a)--2024 JAG Grant) 2 Before BWC were issued to personnel, it was necessary to adopt policies and procedures for their use. The policy states that the Department will provide uniformed personnel with a BWC for use during the performance of their duties. The use of a BWC is intended to enhance the mission of the Department by accurately capturing interaction between members of the Department and the public. BWC video recordings help provide context and capture beneficial information during police investigations and enforcement contacts with members of the public.

RPD continues to monitor the policies and procedures that govern BWC to ensure they meet the needs of the department and staff and to ensure best practices are in place.

The implementation of BWC created the need to manage the data produced by the program. In order to address this issue, two community service officers, overseen by the administrative lieutenant, have been assigned to this duty. This team is responsible for maintaining, redacting, copying, or supplying video and/or audio in the body-worn camera storage system all of the data including redaction of footage that will be released.

RPD is committed to the use of BWCs to maintain a transparent process for both personnel and the community. The use of the JAG funds will allow RPD to expand the program to ensure all personnel who need them have access to them.

Packet Pg. 195 Attachment: City of Redding Project Narrative - JAG 2024 (4.9(a)--2024 JAG Grant)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Accept a grant from the California Department of Justice Tobacco Grant Program in the amount of $630,569 for local retailer enforcement operations by the City of Redding Police Department;
(2) Adopt Resolution approving the acceptance of the grant; and (3) Authorize the City Manager, or designee, to execute all documents related to acceptance of the grant.

Fiscal Impact
The California Department of Justice Tobacco Grant Program (DOJ Tobacco Grant Program) funds will pay for personnel services and administrative costs during Fiscal Year (FY) 2024-25 to FY 2027-28. This grant does not require matching funds. There is no negative fiscal impact in accepting this grant.

Alternative Action
The City Council could choose not to approve acceptance of the grant. The Redding Police Department (RPD) would lose the opportunity to focus additional efforts on retail tobacco sales.

Background/Analysis
The DOJ Tobacco Grant Program made available an estimated $28.5 million in grant funding.

On June 24, 2024, RPD submitted a grant application in the amount $641,069 for enforcement of retail tobacco operations. The purpose of this grant is to support local enforcement efforts to reduce illegal retail sales and marketing of tobacco products to youth.

MEETING DATE: November 5, 2024
ITEM NO. 4.9(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.9(b)--Adopt Resolution accepting the California Department of Justice 2024 Tobacco Grant in the amount of $630,569
Brian Barner, Chief of Police
Packet Pg. 196
Report to Redding City Council October 30, 2024
Re: 4.9(b)--California DOJ Tobacco Grant Page 2
On October 16, 2024, RPD received notice of an award in the amount of $630,569 for 36 months. This grant will fund officers to run operations for enforcement of retail tobacco sales and education of retailers. Activities include retail inspections, minor decoy and shoulder tap operations, undercover buys and retailer education. The grant proposal is designed to assign an officer to spend half of their time on grant activities and to coordinate all operations. Operations will be performed by RPD’s Special Services Unit and will utilize cadets for minor decoy and shoulder tap operations. This grant will strengthen RPD’s efforts in reducing illegal retail sales of tobacco products, especially to youth.

Environmental Review
Accepting the grant is not a project as defined by the California Environmental Quality Act, therefore, no further action is required at this time.

Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
^Tobacco Grant 2024 Resolution
2024_25 Tobacco Grant Program - Application-Review (1)
Redding PD_ Award Letter 24-25
Packet Pg. 197
RESOLUTION NO. 2024-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

AUTHORIZING THE ACCEPTANCE OF A GRANT FROM THE STATE OF

CALIFORNIA DEPARTMENT OF JUSTICE, OFFICE OF THE ATTORNEY GENERAL, TOBACCO GRANT PROGRAM IN THE AMOUNT OF $630,569 WHEREAS, The Redding City Council is interest in participating in the Tobacco Grant Program, which is made available through the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (Prop. 56) and administered by the California Department of Justice (DOJ) to support local efforts to reduce the illegal sale of tobacco products to minors in the City of Redding (City); and
WHEREAS, following the City’s submittal of a proposal for the Program, the State of California DOJ offered to award $630,569 for the 36-month program beginning on November 1, 2024, and ending on October 31, 2027; and
WHEREAS, grant funds will be used for personnel costs related to tobacco enforcement operations, roll call training, and local retailer inspection operations; and WHEREAS, in order to be considered eligible to receive grant funding, the City must submit a completed Grant Award Memorandum of Understanding to the State of California DOJ; NOW, THEREFORE, BE IT RESOLVED that the City Manager, or a designated representative, is hereby authorized, on behalf of the City, to accept grant funding in the amount of $630,569 from the State of California DOJ and is hereby authorized to execute the grant documents and submit all documents, including, without limitation, contracts, amendments, extension and payment requests as appropriate to accept the funds under and comply with conditions of the grant.

I HEREBY CERTIFY that the foregoing resolution was introduced and adopted by the City Council of the City of Redding at a regular meeting held on the 5 th day of November, 2024, by the
following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
__________________________________
TENESSA AUDETTE, Mayor
ATTEST: FORM APPROVED:
______________________________ ___________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney Packet Pg. 198 Attachment: ^Tobacco Grant 2024 Resolution (4.9(b)--California DOJ Tobacco Grant) 2024/25 Tobacco Grant Program - Application

2. Agency Profile
Agency Name
City of Redding
Division/Section/Department
Police Department
County
Shasta County
Entity Type
Public Agency
Agency Type
Law Enforcement (e.g., PD, Sheriff)
Does agency have authority to enforce state tobacco laws or local tobacco ordinances covering retail establishments?
Yes

3. Submitter Information
First Name
Michele
Middle Name
R
Last Name
Davis
Job Title
Management Analyst II
Classification/Contact Role
Agency Staff Member
Street Address 1
777 Cypress Avenue
City
Redding
Zipcode (5 or 9 digits w/dash)
96001
Phone Number
(530) 245-7145
Email Address
[email protected]
Packet Pg. 199 Attachment: 2024_25 Tobacco Grant Program - Application-Review (1) (4.9(b)--California DOJ Tobacco Grant) C
onfirmEmailAddress
[email protected]

4.AlternateAgencyContact
FirstName
Jonathan
LastName
Sheldon
Classification/ContactRole
AgencyStaffMember
StreetAddress1
777CypressAvenue
City
Redding
Zipcode(5or9digitsw/dash)
96001
PhoneNumber
(530)776-0107
EmailAddress
[email protected]
ConfirmEmailAddress
[email protected]
Doyouhaveadditionalalternativecontactforyouragency?
No

6.ProjectSummary
FundingRequested
641,069
FundingDuration
36months
PlannedStartDate(MM/DD/YYYY)
11/01/2024
Packet Pg. 200 Attachment: 2024_25 Tobacco Grant Program - Application-Review (1) (4.9(b)--California DOJ Tobacco Grant) Summary of Proposed Project.

In 2023, the Redding Police Department (RPD) entered into a contract with the Shasta County Health and Human Services Agency to conduct sting operations to address the sales of tobacco products to minors. Through these operations, RPD realized the severity of the problem and determined that more funds were needed to successfully address the problem.

The proposed project will allow the RPD to more aggressively enforce tobacco laws by performing shoulder tap, minor decoy, and undercover buy operations. Education will also be included to retailers to ensure they understand all laws and the consequences of not following them. Officers will spend time performing retailer inspections which will provide more opportunity for education. RPD will assign a .5 time officer to oversee and coordinate the proposed project, who ensure all proposed activities are completed successfully.

There is significant community support and City Council support for tobacco-related enforcement. We have identified the need for ongoing education, prevention, and enforcement with the potential to create a local retail tobacco licensing program and a City ordinance that is more restrictive than State law.

7. Partnering Agencies
Will your agency have other local agencies, departments, or contractors involved to complete any of the proposed activities?
No

14. Problem Statement
Geographic Areas Covered by Project
The geographical area covered by the project is the City of Redding, Shasta County, California. Redding is situated in northern California. It is the largest city north of Sacramento, California, and sits squarely between Sacramento and the Oregon/California border. Rural areas with small communities surround Redding. Redding is the seat of Shasta County, with all services and most retail occurring within Redding. Redding city limits cover an area of over 61 square miles.

Total Population within Project Area (Resource for data: https://cthat.org/) 93327
Population % Under Age 21 within Project Area (Resource for data: https://cthat.org/)

25.7 Retailers within Project Area (Resource for data: https://cthat.org/) 117
Retailers within 1,000 Feet of Schools (within Project Area) - Resource for data: https://cthat.org/ 23 Local Ordinance for Flavored Tobacco?
No
Have prosecutors or public attorneys in the project area filed cases against retailers in past two years? Yes
Packet Pg. 201 Attachment: 2024_25 Tobacco Grant Program - Application-Review (1) (4.9(b)--California DOJ Tobacco Grant) Problem Statement Narrative
There are 117 tobacco retailers within the City of Redding. There are 37 schools within the City. There are 6 tobacco retailers within 500' of a school and 23 within 1000', which means nearly 25 percent of all tobacco retailers are within 1000' of a school. This creates an elevated amount of minor exposure to tobacco retailers.

The median household income is $67,323.00, which is lower than the State average. Shasta County's Adverse Childhood Experience (ACE) score is nearly double the national average. Two key elements to ACE scores are associated to low income or poverty and substance abuse. The higher the ACE scores, the higher the risk of developing chronic illnesses like heart disease, COPD, depression and cancer. According to the American Lung Association, smoking is the No. 1 preventable death in the U.S.

Currently, the City doesn't have a local ordinance to address tobacco retail licensing, unlawful sales to minor and unlawful sales of flavored tobacco. The City Council has made unlawful sales of tobacco to minors a priority in recent months and are currently in the process of evaluating the need of more restrictive local ordinances.

15. Goals and Objectives
Activity Area
Retailer Inspections
Minor Decoy Operations
Shoulder Tap Operations
Undercover Buys
Retailer Education
Enforcement Officer Education

16. Retailer Inspections
Number of tobacco retailers that will be inspected per year 117
Will inspections address flavor ban (state law or local ordinance)? Yes
Additional details regarding retail inspections planned Tobacco retailer inspections are necessary by the Redding Police to ensure compliance with state and future local regulations designed to protect public health, particularly that of minors. These inspections are critical for enforcing laws that prohibit the sale of tobacco products to individuals under the age of 21, a key measure in reducing youth access to tobacco and subsequent addiction. By monitoring retailer practices, law enforcement can identify and address violations, thus discouraging illegal sales.

Each inspection would require two officers and one tobacco compliance specialist. Receiving this grant will provide the Police Department funding to continue the inspections through 2027.

17. Minor Decoy Operations
Number of minor decoy operations planned per year
12 Number of tobacco retailers targeted for operations
12 Will operations address retail flavor ban (state law or local ordinance)? Yes
Additional details regarding minor decoy operations planned Each minor decoy operation would include one undercover officer, one minor as decoy, two uniformed officers to monitor the safety of the undercover officer and minor, and a supervisor. These operations require careful planning and pre-operational documentation and discussion. When a violation occurs, the uniformed officers will take enforcement action to enforce state and local laws. After enforcement action, officers will need to prepare police reports, prepare a media release, maintain statistics and attend court for testimony. Receiving this grant will provide the Police Department funding to continue the inspections through 2027.

18. Shoulder Tap Operations
Packet Pg. 202 Attachment: 2024_25 Tobacco Grant Program - Application-Review (1) (4.9(b)--California DOJ Tobacco Grant) Number of shoulder tap operations planned per year
12 Number of tobacco retailers targeted for operations
12 Will operations address retail flavor ban (state law or local ordinance)? Yes
Additional details regarding shoulder tap operations planned Each shoulder tap operation would include one undercover officer, one minor to shoulder tap, two uniformed officers to monitor the safety of the undercover officer and minor, and one supervisor. These operations require careful planning and pre-operational documentation and discussion. When a violation occurs, the uniformed officers will take enforcement action to enforce state and local laws. After enforcement action, officers will need to prepare police reports, prepare a media release, maintain statistics and attend court for testimony. Receiving this grant will provide the Police Department funding to continue the inspections through 2027.

19. Undercover Buy Operations
Number of undercover buy operations planned per year
6 Number of tobacco retailers targeted for operations
12 Will operations address retail flavor ban (state law or local ordinance)? Yes
Additional details regarding undercover buy operations planned Undercover buy operations allow the RPD to send in an adult officer in plain clothes to purchase flavored tobacco or other products being illegally sold outside of the of the retailers license.

Each undercover buy operation would include one undercover officer, 2 uniformed officers for safety, and a supervisor.

When a violation occurs, the uniformed officers will take enforcement action to enforce state and local laws. After enforcement action, officers will need to prepare police reports, prepare a media release, maintain statistics and attend court for testimony. Receiving this grant will provide the Police Department funding to continue the inspections through 2027.

20. Retailer Education
Type of Educational Activity
Mailers
On-site Education
Number of retailers to receive educational materials per year 117
Will mailers address retail flavor ban (state law or local ordinance)? Yes
Number of retailers to receive education on-site per year 50 Will on-site retailer education address retail flavor ban (state law or local ordinance)? Yes
Additional details regarding educational activities
By focusing on education and collaboration, law enforcement can help ensure that retailers are well-informed and motivated to comply with laws designed to protect minors from the dangers of tobacco use. Typically, this will occur during inspections or if a violation occurs during an operation. Retailer Education will also occur when we disseminate information via a media release post operation.

Packet Pg. 203 Attachment: 2024_25 Tobacco Grant Program - Application-Review (1) (4.9(b)--California DOJ Tobacco Grant)

21. Enforcement Officer Education
Number of officers to receive tobacco education per year 2 Will officer education address retail flavor ban (state law or local ordinance)? Yes
Additional details regarding enforcement officer education planned The Redding Police Department intends to seek enforcement officer education for two officers each year of the grant.

Officers can undergo several types of training specifically designed for enforcing tobacco retailer regulations and preventing sales to minors. These training programs are essential for equipping officers with the knowledge and skills needed to conduct effective enforcement operations.

By participating in these training programs, Redding Police officers can effectively enforce tobacco laws, protect minors from the dangers of tobacco use, and support public health initiatives. The vast majority of this training will occur within the agency.

25. Project Personnel
Does the applicant agency have personnel that will perform grant activities? Yes

26. Project Personnel 1
Personnel Classification/Rank
Officer
Will operations by this personnel be done on overtime, straight time, or both?" Straight Time
Percentage of Straight Time Planned (%)
50%
Personnel Duties
Retailer Inspections
Minor Decoy Operations
Shoulder Tap Operations
Undercover Buy Operations
Retailer Education
Enforcement Officer Education
Additional details regarding personnel duties planned
The Dept. will assign .5 FTE officer to the grant as the grant coordinator. They will ensure all ops are performed and will perform ops on a straight time basis. This employee will work with the supervisor to ensure all operations are completed and will be responsible for reporting grant operations.

Are there additional personnel that will perform project activities? Yes

27. Project Personnel 2
Personnel Classification/Rank
Sergeant
Will operations by this personnel be done on overtime, straight time, or both? Straight Time
Percentage of Straight Time (%)
6%
Packet Pg. 204 Attachment: 2024_25 Tobacco Grant Program - Application-Review (1) (4.9(b)--California DOJ Tobacco Grant) Personnel Duties
Retailer Inspections
Minor Decoy Operations
Shoulder Tap Operations
Enforcement Officer Education
Additional details regarding personnel duties planned
The sergeant will oversee all operations and will coordinate with the .5 time officer assigned to the grant to ensure all operations are carried out. The amount of time of the sergeant is approximately 6% of their time on the grant. This will be done on straight time.

Are there additional personnel that will perform project activities? Yes

28. Project Personnel 3
Personnel Classification/Rank
Officers
Will operations by this personnel be done on overtime, straight time, or both? Straight Time
Percentage of Straight Time (%)

6.5%
Personnel Duties
Retailer Inspections
Minor Decoy Operations
Shoulder Tap Operations
Undercover Buy Operations
Retailer Education
Additional details regarding personnel duties planned
On duty officers will be used to for all operations related to this grant. It is anticipated to use an average of 3-4 officers for all operations which would equate to 6% of an FTE PER officer.

Are there additional personnel that will perform project activities? Yes

29. Project Personnel 4
Personnel Classification/Rank
Police Cadet
Will operations by this personnel be done on overtime, straight time, or both? Straight Time
Percentage of Straight Time (%)
1%
Personnel Duties
Minor Decoy Operations
Shoulder Tap Operations
Additional details regarding personnel duties planned
Cadets will be used for minor decoy and shoulder tap operations. Since cadets are part-time employees they do not work overtime and will be paid straight time for these operations.

Are there additional personnel that will perform project activities? No
Packet Pg. 205 Attachment: 2024_25 Tobacco Grant Program - Application-Review (1) (4.9(b)--California DOJ Tobacco Grant)

32. Project Budget
Please submit the Budget Detail document (Excel file).
tobacco-grant-budget-detail-sheet.xlsx
Does your Budget Detail include expenses listed in Section B (Other Operating Expenses and Equipment)?
Yes
Budget Narrative: Please provide justification for each expense listed within Section B of the Budget Detail Sheet (Operating Expenses and Equipment)".

Travel/Training Registration
$10,500 Training is an important element of the proposed project to ensure those who participate in operations are following all laws and performing the operations in the most effective way. At the time of the writing of this grant, specific trainings have not been identified. The half-time officer assigned to the grant will work to identify the training and ensure the training happens. If additional funds are needed to provide training, RPD will cover the additional cost. If no-cost training is available, the funds will not be used.

Personnel
The project proposed using straight time for the operations. The .5 time officer will over see all aspects of the grant and coordinate all of operations. Using straight time allows RPD to utilize specialty units who are best equipped for the operations during their shift. Over the last several years, City Council approved additional positions with federal funding which is expiring. Without additional funding, RPD will need to eliminate positions. Using straight time helps to offset the revenue loss and to maintain positions.

Line item(s) on Budget Detail that correspond with this activity - Retail Inspections Items 8, 2, 44, 46
Hours estimated for inspection is 1 hour for each inspection. Dedicated .5 officers plus one additional officer. 1 hour x 117 = 117 hours annually above the dedicated officer.

Line item(s) on Budget Detail that correspond with this activity - Minor Decoy Item 8, 10, 12, 44, 46, 48
Minor Decoy and Shoulder Tap operations will happen during the same operation.

Hours estimated per operation 2 officers - 6 hours each, 1 sergeant - 6.5 hours , 1 cadet - 5 hours. Total of 23.5 hours per op - 282 hours per year above the dedicated officer.

Line item(s) on Budget Detail that correspond with this activity - Shoulder Tap Item 8, 10, 12, 44, 46, 48
Minor Decoy and Shoulder Tap operations will happen during the same operation.

Hours estimated per operation 2 officers - 6 hours each, 1 sergeant - 6.5 hours , 1 cadet - 5 hours. Total of 23.5 hours per op - 282 hours per year above the dedicated officer.

Line item(s) on Budget Detail that correspond with this activity - Undercover Buys Items 8, 10, 12, 44, 46
Undercover buys will use 4 officers (including on dedicated .5 officer) and 1 sergeant. Hours per operation is 6 hours per officer/sergeant for a total 24 hours Total hours per year is 144 hours above dedicated officer.

Line item(s) on Budget Detail that correspond with this activity - Retailer Education Items 8 and 12 The majority of the retailer education will be performed by the dedicated officer. Some retailer education will also occur during the retail inspection.

Line item(s) on Budget Detail that correspond with this activity - Enforcement Officer Education Items 8, 12 and 96. Enforcement Officer Education will happen in several ways. Officers that work directly with the grant will attend training. Other officers may receive training through presentations during briefings which will be provided by the dedicated officer.

33. Grant History And Community Support
Has your agency had a prior grant or does it have a current grant through the Tobacco Grant Program? No

34. Certifications And Signature
Packet Pg. 206 Attachment: 2024_25 Tobacco Grant Program - Application-Review (1) (4.9(b)--California DOJ Tobacco Grant) A
uthorizedsignature
MicheleDavis
Packet Pg. 207 Attachment: 2024_25 Tobacco Grant Program - Application-Review (1) (4.9(b)--California DOJ Tobacco Grant) Packet Pg. 208
Attachment: Redding PD_ Award Letter 24-25 (4.9(b)--California DOJ Tobacco Grant) Packet Pg. 209
Attachment: Redding PD_ Award Letter 24-25 (4.9(b)--California DOJ Tobacco Grant)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Approve renewal of the License Agreement (C-4255) leasing approximately 280 acres of City of Redding-owned pastureland immediately north of the Sacramento River, adjacent to the Stillwater Wastewater Treatment Plant, to the Regents of the University of California for an additional five-year period; and
(2) Find that the action is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities.

Fiscal Impact
An annual lease payment of $1,800 will be collected. The funds are distributed to Public Works’ Wastewater Utility.

Alternative Action
The City Council may choose not to renew the License Agreement with the Regents of the University of California. This alternative would leave the University of California Cooperative Extension Program without land for grazing.

Background/Analysis
Dr. Larry Forero, who is with the University of California Cooperative Extension Program and is the Livestock/Natural Resource Advisor in Shasta County, has had a license agreement with the City of Redding (City) on the subject land to conduct a study since December 2004. He would like to continue to use the pastureland for rangeland, livestock research, and education projects. He completed a study which was published in the August 2014 issue of Rangelands that evaluated the economic and performance advantage of wintering beef cattle from the California Northeastern Plateau in the Sacramento Valley. Information collected through this MEETING DATE: November 5, 2024
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(a)---Approve the Second Amendment to License Agreement with UC Regents
Michael Webb, Public Works
Director
Packet Pg. 210
Report to Redding City Council October 29, 2024
Re: 4.11(a)---Approve Second Amendment to License Agreement with UC Regents Page 2 evaluation will be shared with other cattle producers in this area, which could enhance the cost effectiveness of beef production.

In addition to contributing knowledge to the local beef industry, the benefit of this license agreement to the City will be that the 280 acres will be put into productive use. Weeds, which could become a fire hazard, will be controlled through grazing. Access to the property will be controlled by the licensee, thereby minimizing illegal dumping.

The term of the license agreement will be for five years. Either party may terminate the agreement with 90-days’ written notice.

Staff believes the potential benefits to the local cattle producing industry and the advantages associated with having a good caretaker on what would otherwise be 280 acres of unused land surrounding the Stillwater Wastewater Treatment Plant, warrants approval of the License Agreement.

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

Environmental Review
Staff has reviewed the action and determined that it is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities. Class 1 exemptions include the permitting, leasing, and operation of public or private structures, facilities, mechanical equipment, or topographical features that involve negligible or no expansion of existing or former use. Approval of the lease agreement will not result in an expansion of existing use, and the action 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
^Second Amendment to C-4255
C-4255 - Agreement - 2014 - The Regents of the University of California C-4255 - Agreement - 2019 - The Regents of the University of California NOE License Agreement with UC Regents
Packet Pg. 211
Packet Pg. 212
Attachment: ^Location Map (4.11(a)---Approve Second Amendment to License Agreement with UC Regents) Packet Pg. 213
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OFFICE OF THE CITY CLERK
14, e' 777 Cypress Avenue, Redding, CA 96001
P.O. Box 496071, Redding, CA 96049- 6071
530. 225. 4447 FAX 530.225. 4463
Pamela Mize, City Clerk
Teresa Rudolph, Assistant City Clerk
September 26, 2014
The Regents of University of California
Division ofAgriculture and Natural Resources
1111 Franklin Street, 6th Floor
Oakland, CA 94607
SUBJECT: License Agreement, C- 4255
Dear Ladies and Gentlemen:

Enclosed is a fully executed original ofthe above subject Agreement by and between the City of Redding and The Regents of University of California regarding a grazing license to lease land located along Airport Road adjacent to the Stillwater Waste Water Treatment Plant, Redding, California, for an additional five-year term, beginning October 1, 2014.

The agreement was approved by the Redding City Council at its regular meeting on September 16, 2014.

If you have any questions regarding this matter, or if we can be of assistance, please contact the Office of the City Clerk at ( 530) 225- 4439.

Sincerely,
Pamela Mize
City Clerk
By: w..®
A
Marg40J. ell
Exec we Assistant I
Enclosures
c: Michele Davis, Support Services Department
Shasta County Assessor' s Office
Packet Pg. 215 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License

LICENSE AGREEMENT
THIS LICENSE AGREEMENT is by and between the CITY OF REDDING, a Municipal Corporation and General Law City(" Licensor"), and The Regents of the University of California, a California corporation (" Licensee"):

RECITALS
This License Agreement is made with reference to the following facts and objectives:

A. Licensor owns certain premises along Airport Road, Redding, California, generally described as approximately 280 acres of pasture land immediately north of the Sacramento River, adjacent to the Stillwater Waste Water Treatment Plant, and is a portion of Shasta County Assessor' s Parcel No. 056- 400- 010 (" Premises").

B. Licensee desires to License the land for the purpose of conducting livestock grazing and rangeland research and education programs.

AGREEMENT

1. PREMISES. Licensor Licenses to Licensee, all the real property depicted in Exhibit " A" attached hereto and incorporated herein by reference, along Airport Road in Redding, Shasta County, California, adjacent to Stillwater Waste Water.

Treatment Plant.

2. TERM. The term of this License Agreement shall be for a period of five years commencing on October 1, 2014, and terminating September 30, 2019.

3. LICENSE FEE. The Licensor shall receive $ 1, 800 per year for the term of this License. The License Fee is due in full by September 30 each year.

4. USE OF PREMISES. Licensee shall use the premises solely for the running of a livestock/rangeland and educational program. Licensor shall stock the rangeland at an appropriate rate on a seasonal basis to assure over grazing does not occur.

Licensee hereby covenants and agrees that no improvements will be made without the prior, specific written approval from Licensor.

5. CONDITION, MAINTENANCE AND IMPROVEMENTS. Licensee has inspected the Premises and accepts it in an" as is" condition.

6. UTILITIES Licensee shall pay the cost for any utility service that is furnished to the Premises.

7. COMPLIANCE WITH LAWS. Licensee shall comply with all statutes, laws, ordinances, regulations, orders, and judgments of any federal, state or local governmental or judicial entity now in force or which may hereafter be in force 119P yK/ 5
Packet Pg. 216 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Regents of University of California
License Agreement

concerning the Premises or Licensee' s use of the Premises, including, without limitation, the obligation at Licensee' s cost to alter, maintain, or restore the Premises, or construct improvements to the Premises, in compliance and conformity with all laws and government requirements relating to the condition, use, or occupancy of the Premises during the term, whether foreseen or unforseen, regardless or the cost, and regardless of when during the term the work is required.

8. WASTE AND QUIET CONDUCT. Licensee shall not commit nor permit to be committed any waste, not otherwise contemplated by this agreement, upon the Premises, nor any nuisance or other act or thing which may disturb the quiet enjoyment or use of adjoining parcels by others, including Licensor' s adjoining parcel.

9. INDEMNIFICATION. Except as provided in Paragraph 18, Licensee shall indemnify and defend Licensor and its elected officials, officers, employees, agents and volunteers against and hold them harmless from any and all claims, losses, damages, and liability for damages, including reasonable attorneys' fees and other costs of defense incurred by Licensor, whether for damage to or loss of property or injury to or death of person, including properties of Licensor and injury to or death or Licensor' s elected officials, officers, employees, agents, and volunteers, arising out of or resulting from Licensee' s use of the Premises or from the actions of Licensee, Licensee' s employees, agents and invitees or from the performance of the work or obligations of Licensee described herein, but only in proportion to and to the extent that such damage, loss, injury or death arises from negligent or intentional acts or omissions of Licensee, its officers, agents, partners, invitees or employees.

Except as provided in Paragraph 18, Licensor shall indemnify and defend Licensee and its officers, employees, agents and volunteers against and hold them harmless from any and all claims, losses, damages, and liability for damages, including reasonable attorneys' fees and other costs of defense incurred by Licensee, whether for damage to or loss of property or injury to or death of person, including properties of Licensee and injury to or death to Licensee' s officers, employees, agents and volunteers, arising out of or resulting from the Premises or the actions of Licensor, Licensor' s employees, agents and invitees or from the performance ofthe work or obligations of Licensor described herein, but only in proportion to and to the extent that such damage, loss, injury or death arises from the neglect or intentional acts or omissions of Licensor, its officers, agents, partners, invitees or employees.

Packet Pg. 217 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Regents of University of California
License Agreement

10. INSURANCE.

A. Licensee shall procure and maintain for the duration of this License Agreement the following insurance against claims for injuries to persons or damages to property which may arise from or in connection with Licensee' s operation and use of the Premises. Insurance shall be borne by Licensee.

Coverage shall include commercial general liability self-insurance at least as broad as ISO occurrence form CG 0001 with limits of $1, 000,000 per occurrence/$ 2, 000, 000 general aggregate.

The general liability policy is to contain, or be endorsed to contain, the following provisions:

1. Licensor, its officers, officials, employees, agents, and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Licensee; products and completed operations of the Licensee; Premises owned, occupied or used by the Licensee. The coverage shall contain no special limitations of the scope of protections afforded to Licensor, its officers, officials, employees, agents, or volunteers.

2. Licensee' s insurance coverage shall be primary insurance as respects Licensor, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by Licensor, its officers, officials, employees, agents, or volunteers shall be excess of Licensee insurance and shall not contribute with it.

3. Licensee' s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled except after thirty( 30) days prior written notice has been given to Licensor.

Licensee shall furnish Licensor with certificates of insurance and original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the Risk Manager of Licensor prior to the commencement date of this License Agreement.

B. It is further understood and agreed as a condition ofthis License Agreement that should Licensee hire an employee or employees, Licensee will provide worker's compensation insurance on its employees as required by the Labor Packet Pg. 218 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Regents of University of California
License Agreement

Code, and shall furnish Licensor with a Certificate evidencing such insurance. To obtain an exemption from this requirement should Licensee have no employees, Licensee shall provide the Risk Manager of Licensor with a letter stating that it is not employing any person or persons in any manner so as to become subject to the workers' compensation laws of California; provided, however, that should Licensee later become subject to the workers' compensation provisions of the Labor Code, it will forthwith comply with the insurance requirements.

C. In the alternative to those provisions set forth in Section 10( A)-(B), Licensee will maintain insurance, or a program of self-insurance, in amounts and coverages equal to those described above. General Liability Insurance and Automobile Liability coverages shall include Licensor as an additional insured but only in proportion to and to the extent occasioned by the negligent acts or omission of Licensee, its officers, employees, agents, or volunteers.

11. VOLUNTARY ASSIGNMENT AND SUBLETTING.

Licensee shall not voluntarily assign or encumber Licensee' s interest in this License Agreement or in the Premises, or sublicense all or any part ofthe Premises, or allow any other person or entity ( except Licensee' s authorized representatives) to occupy or use all or any part of the Premises, without first obtaining Licensor' s prior written consent. Any assignment, encumbrance, or sublicense without Licensor' s consent shall be voidable and, at the sole election of Licensor, shall constitute a default of this License Agreement. No consent to any assignment, encumbrance, or sublicense, shall constitute a further waiver of the provisions of this section. If Licensee consists of more than one person, a purported assignment, voluntary, involuntary, or by operation of law, from one person to the other shall be deemed a voluntary assignment. Use of cattle by a cooperator for the purposes of research and education projects is acceptable. Licensor recognizes the Licensee may charge the cooperator for costs associated with research and education projects.

12. LICENSOR' S ENTRY ON PREMISES. Licensor and its authorized agents and employees shall have the right to enter the Premises at all reasonable times for any of the following purposes:

A. To determine whether the Premises are in good condition and whether Licensee is complying with Licensee' s obligations under this License Agreement;
B. To prepare conduct appropriate land management activities.

Licensor shall not be liable in any manner for any inconvenience, disturbance, loss of business, nuisance, or other damage arising out of Licensor' s entry on the Packet Pg. 219 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Regents of University of California
License Agreement

Premises as provided in this section, except damage resulting from the acts or omissions of Licensor or its agents or employees. Licensee shall not be entitled to an abatement or reduction of rent if Licensor exercises any rights reserved in this section. Licensor shall conduct its activities on the Premises as allowed in this section in a manner that will cause the least possible inconvenience, annoyance or disturbance to Licensee.

13. WAIVER. No delay or omission in the exercise of any right or remedy of Licensor on any default by Licensee shall impair such a right or remedy or be construed as a waiver. The receipt and acceptance by Licensor of delinquent license fee shall not constitute a waiver of any other default; it shall constitute a waiver of timely payment of the particular license fee payment involved. No act or conduct of Licensor, including, without limitation, the acceptance of the keys to the Premises or the combination to any combination locks on the Premises, shall constitute an acceptance of the surrender of the Premises by Licensee before the expiration of the term or extension of the term of this License Agreement. Only a notice from Licensor to Licensee shall constitute acceptance of the surrender of the Premises and accomplish a termination of this License Agreement. Licensor' s consent to or approval of any act by Licensee requiring Licensor' s consent or approval shall not be deemed to waive or render unnecessary Licensor= s consent to or approval of any subsequent act by Licensee. Any waiver by Licensor or any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this License Agreement.

14. DEFAULT. The occurrence of any of the following shall constitute a default by Licensee:

A. Failure to pay license fee when due, if the failure continues for five ( 5) calendar days after notice has been given to Licensee.

B. Failure to perform any other provision of this License Agreement if the failure to perform is not cured within thirty (30) calendar days after notice has been given to Licensee. Ifthe default cannot be reasonably cured within thirty ( 30) calendar days, Licensee shall not be in default of this License Agreement if Licensee commences to cure the default within the thirty (30) calendar day period and diligently and in good faith continues to cure the default.

Notices given under this section shall specify the alleged default and the applicable provisions of this License Agreement, and shall demand that Licensee perform the provisions of this License Agreement or pay the license fee that is in arrears, as the case may be, within the applicable period of time, or quit the Premises. No such notice shall be deemed a forfeiture or a termination of this License Agreement unless Licensor so elects in the notice. The purpose of the notice requirements set forth in this section is to extend the notice requirements of the unlawful detainer statutes in California.

Packet Pg. 220 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Regents of University of California
License Agreement

15. LICENSOR' S REMEDIES/TERMINIATION. Licensor shall have the following remedies if Licensee commits a default. These remedies are not exclusive; they are cumulative in addition to any remedies now or later allowed by law.

Licensor can terminate Licensee' s right to possession of the Premises at any time.

No act by Licensor other than giving notice to Licensee shall terminate this License Agreement. Acts of maintenance, efforts to relet the Premises, or the appointment of a receiver on. Licensor' s initiative to protect Licensor' s interest under this License Agreement shall not constitute a termination of Licensee' s right to possession. On termination, Licensor has the right to recover from Licensee:

A. The worth, at the time of the award, of unpaid license fee that had been earned at the time of termination of this License Agreement; B. The worth ofthe amount by which the unpaid license fee for the balance of the term after the time of award exceeds the amount of the loss of rent or license fee that Licensee proves could have been reasonably avoided; C. Any other amount, and court costs, necessary to compensate Licensor for all detriment proximately caused by Licensee' s default.

16. CANCELLATION. Notwithstanding Section 15, this License Agreement may be canceled by either party without cause at any time during the term or any extended term of this License Agreement upon giving written notice ninety ( 90) days in advance of such cancellation. If this License Agreement is canceled by either party pursuant to this section, Licensor shall not be obligated to save or protect any equipment remaining on the Premises after the License has been terminated. Licensee shall remove any and all of Licensee' s personal property from the Premises on or before the date of termination.

In the event of cancellation by either party pursuant to this section, Licensee shall prorate any license fee amount owed by Licensee through the date of cancellation and shall pay such prorated amount to Licensor with the cancellation notice.

Similarly, any license fee amount paid in advance by Licensee that is for a period of time beyond the date of cancellation shall be reimbursed to Licensee by Licensor.

17. SURRENDER OF PREMISES. On the expiration, cancellation or termination of this License Agreement, Licensee shall surrender possession of the Premises to Licensor, deliver all keys to the locks on the Premises, and make known to Licensor the combination of all combination locks on the Premises. Licensee shall leave the Premises in a condition as good as or better than on the date that this License commenced, reasonable wear and tear and damage by casualty excepted.

Licensee shall remove all Licensee' s personal property and perform any and all restoration made necessary by the removal of any personal property on or before the date of expiration, cancellation or termination. Licensor can elect to retain or Packet Pg. 221 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Regents of University of California
License Agreement

dispose of in any manner any alterations or Licensee' s personal property that Licensee does not remove from the Premises on the expiration, cancellation or termination of the term or any extended term of this License Agreement as allowed or required by this License Agreement by giving at least five ( 5) days notice to Licensee. Title to any such alterations or Licensee' s personal property that Licensor elects to retain or dispose of shall vest in Licensor on expiration of the five (5) day period. Licensee waives all claims against Licensor for any damage to Licensee resulting from Licensor' s retention or disposition of any such alterations or Licensee' s personal property. Licensee shall be liable to Licensor for Licensor' s reasonable costs for storing, removing, and disposing of any alteration or Licensee' s personal property.

If Licensee fails to surrender the Premises to Licensor on expiration, cancellation or termination as required by this section, Licensee shall hold Licensor harmless from all damages resulting from Licensee' s failure to surrender the Premises, including, without limitation, claims made by a succeeding licensee resulting from Licensee' s failure to surrender the Premises, but only in proportion to and to the extent that such damages arise from the negligent or intentional acts or omissions of Licensee, its officers, agents, or employees.

18. INDEMNIFICATION FOR HAZARDOUS MATERIALS. Licensee agrees to indemnify, protect, hold harmless, and defend Licensor, its elected officials, officers, employees, agents and volunteers from and against any and all liability, including without limitation, ( a) all foreseeable and unforeseeable consequential damages, directly or indirectly arising from the use, generation, storage, or disposal of hazardous materials, including without limitation those permitted to be used or stored on the Premises, by Licensee and Licensee' s employees and agents and ( b) the reasonable cost of any required or necessary repair cleanup, or detoxification and the preparation of any closure or other required plans, but only in proportion to and to the extent that such liability arises from the negligent or intentional acts or omissions of Licensee, its officers, agents, or employees.

Licensor agrees to indemnify, protect, hold harmless and defend Licensee, its officers, employees, agents, and volunteers from and against any and all liability, including without limitation, (a) foreseeable and unforeseeable consequential damages arising from Licensor=' s use, generation, storage, or disposal of hazardous material, including without limitation those permitted to be used or stored on the Premises, by Licensor and Licensor=' s employees and agents and ( b) the reasonable cost of any required for necessary repair, cleanup, or detoxification and the preparation of any closure of other required plans, to the full extent that such liability is attributable to the Licensor for the presence of use, generation, storage, release, threatened release, or disposal of hazardous materials, including without limitation those permitted to be use or stored on the Premises during and prior to the term of this License Agreement.

Packet Pg. 222 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Regents of University of California
License Agreement

Except as otherwise permitted in this License Agreement or by the express written consent of Licensor, Licensee shall not knowingly use, create, store, or allow any hazardous materials on the Premises; Fuel stored in a motor vehicle for the exclusive use in the vehicle and products used for routine cleaning and maintenance of the Premises or for the uses set forth in Paragraph 4 may be kept on the Premises in quantities reasonable for current needs. Breach of any of the covenants, terms and conditions set forth in this Section 18 shall give Licensor the right to immediately terminate this License Agreement. Licensee shall be responsible at Licensee' s sole expense and obligation for the legal removal and disposal of hazardous materials introduced to the Premises by reason of Licensee' s neglect, intentional act, or omission during the term of this License. Licensee shall have no responsibility or obligation for any removal, disposal, cleanup or decontamination activities related to or arising from hazardous materials introduced to the Premises prior to the term of this License Agreement, or by reasons other than the neglect, intentional acts, or omissions of Licensee.

Hazardous materials shall include, but are not limited to, substances which are flammable; explosive; corrosive; radioactive; toxic; and any 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.), and all amendments to these laws, and regulations adopted or publications promulgated pursuant to these laws. Hazardous materials shall also include those asbestos- containing materials defined and described in Environmental Protection Agency Report No. 56/ 5- 85- 024 ( June 1985), or any related or successor report, or other applicable government regulations defining or describing such materials.

Hazardous materials shall also include 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.

19. ADMINISTRATION BY LICENSOR. Whenever Licensee is required to secure the approval or consent of Licensor under this License Agreement," Licensor" shall mean the City Manager of the City of Redding.

20. ENTIRE AGREEMENT AND MODIFICATION OR AMENDMENT. This License Agreement, which includes all exhibits attached hereto' and incorporated by reference herein, contains all the representations and the entire understanding and agreement between the parties pertaining to the Premises or any other matters connected therewith. All correspondence, memoranda, or oral or written agreements pertaining to the Premises or any the parties hereto, which originated Packet Pg. 223 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Regents of University of California
License Agreement

before the date of this License Agreement are null, void and no longer in force and with no effect, and are replaced in total with this License Agreement unless otherwise expressly stated in this License Agreement. This License Agreement shall not be altered, amended or modified except by a writing signed by Licensor and Licensee.

21. SEVERABILITY. The unenforceability, invalidity, or illegality or any provision shall not render the other provisions unenforceable, invalid, or illegal.

22. NOTICES. All notices and other communications authorized or required under this License Agreement shall be in writing and shall be given by ( a) personal delivery,( b) United States mail, or( c) delivery by commercially recognized courier service. Any such notice or other communication shall be deemed to have been given on the date of delivery or refusal to accept delivery if addressed as follows:

Licensee Licensor
The Regents ofUniversity ofCalifornia City Redding
Division ofAgriculture and Natural Resources City Manager 1111 Franklin Street, 6th Floor 777 Cypress Avenue
Oakland, CA 94607 Redding, CA 96001
Either party may change its address for the purposes of this section by giving written notice of such change to the other party in the manner provided in this section.

23. ATTORNEYS' FEES. In any dispute between Licensor and Licensee, whether or not resulting in litigation, the prevailing party shall be entitled to recover from the other party all reasonable costs, including without limitation, reasonable attorney' s fees.

Prevailing party" shall include without limitation, a party who dismisses an action for specific performance or for damages in exchange for sums allegedly due, performance for covenants allegedly breached or consideration substantially equal to the relief sought in the action, or which receives from the other party, in connection with any dispute, performance substantially equivalent to any of these. No sum for attorney fees shall be included in calculating the amount of a judgment for purposes of deciding whether a party is entitled to its costs or attorney fees.

24. BINDING ON SUCCESSORS. Subject to the provisions in this License Agreement respecting assignment or subletting, all covenants, terms and conditions in this License Agreement shall extend to and bind the successors, heirs, and assigns of the respective parties to this License Agreement.

25. HEADINGS, REFERENCE AND JOINT AND SEVERAL LIABILITY. The titles and headings of the various sections of this License Agreement are intended solely for convenience of reference and are not intended to explain, modify or place any construction on any of the provisions of this License Agreement. Masculine, feminine and the neutral gender and the singular and the plural number shall each be Packet Pg. 224 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Regents of University of California
License Agreement

considered to include the other whenever the context so requires. If either party consists of more than one person, each such person shall be jointly and severally liable.

26. NO PARTY DEEMED DRAFTER. In the eventof a dispute between any of the parties to this License Agreement over the meaning of this License Agreement, no party shall be deemed to have been the drafter hereof, and the principle of law that contracts are to be construed against the drafter shall not apply.

27. CALIFORNIA LAW. This License Agreement shall be construed and interpreted in accordance with the laws of the State of California.

28. PROVISIONS ARE COVENANTS AND CONDITIONS. All provisions, whether covenants or conditions, on the part of Licensee shall be deemed to be both covenants and conditions.

29. TIME OF ESSENCE. Time is of the essence of this License Agreement and of each and every provision in this License Agreement.

30. DATE OF AGREEMENT. The date ofthis License Agreement shall be that date that it shall have been signed by Licensor.

Packet Pg. 225 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Regents of University of California
License Agreement

Licensor

CIT REDDI G
Dated: By. C-e..)--
Mayor Rj 3©Sr7%(
ATTEST:
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PAMELA MIZE,' City Clerk= r : y
r . 1 .. r 4_ ) City Attorney
Licensee
Dated: q//s/ i By: A
William Frost
Associate Vice President
University of California Division of
Agriculture & Natural Resources
Concurrence
Dated: VA-1-/). 0l1-1 By: FCA'\ J
Larry For r
County Director
UC Cooperative Extension,
Shasta County
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Packet Pg. 227 Pint Date. Sept. z. 2014 Attachment: C-4255 - Agreement - 2014 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License

CITI' OF CITY OF REDDING
SID," y
i
777 CYPRESS AVENUE. REDDING. CA 96001
4/ 4,%713 PO. Box 496071 . REDDING, CA 96049- 6071

OFFICE OF THE CITY CLERK

PAMELA MIZE, CITY CLERK

SHARLENE TIPTON, ASSISTANT CITY CLERK
530.225.4447
530 225 4463 FAX
December 20, 2019
Jake McGuire
Controller, UC Agriculture and Natural Resources
The Regents of the University of California
1111 Franklin Street, 10th Floor
Oakland, CA 94607- 5200
SUBJECT: Amendment to License Agreement, C- 4255
Dear Mr.McGuire,
Enclosed please find the fully executed original of the Amendment to License Agreement by and between the City of Redding and The Regents of the University of California for the license of land for the purpose of livestock grazing and rangeland research and educational programs.

If you have any questions regarding this matter, or if we can be of assistance, please contact the Office of the City Clerk at ( 530) 225- 4044.

Sincerely,
Joan Twomey
Executive Assistant
Enclosure
cc: Vandiver
Grannis
Packet Pg. 228 Attachment: C-4255 - Agreement - 2019 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License

AMENDMENT TO THE
LICENSE AGREEMENT between the CITY OF REDDING and
The Regents of the University of California, a California corporation (C-4255) THE LICENSE AGREEMENT by and between the CITY OF REDDING, a Municipal Corporation and General Law City (" Licensor"), and The Regents of the University of California, a California corporation (" Licensee") dated September 26, 2014 is hereby amended as follows:

Section 2. is amended to read in its entirety as follows:

The term of this License Agreement shall be for a period of five years commencing on October 1, 2019, and terminating September 30, 2024.

Section 5. is amended to read in its entirety as follows:

Licensee has inspected the Premises and accepts it in an " as is" condition.

Licensee shall, at Licensee' s sole cost and expense and at all times during the term, maintain the licensed area in good repair. Licensee understands that existing fencing may not be adequate for enclosing livestock and that Licensee shall repair, install and maintain all fencing necessary for the purposes set forth herein.

All other terms and conditions of the License dated September 26, 2014 shall remain in full force and effect.

The effective date of this Amendment shall be the date that it is signed by the City. 9- 3
ti l i} l ` j
Packet Pg. 229 Attachment: C-4255 - Agreement - 2019 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License IN WITNESS WHEREOF, Licensor and Licensee have executed this Amendment on the days and year set forth below:

CITY OF REDDING,
A Municipal Corporation
Dated: kyr /' , 20 /C77-Te C.-,. w
Adam McElvain, Mayor
ATTEST: APPROVED AS TO FORM:

BARRY E. DeWALT
City Attorney
Pcfryr),
PAMELA MIZE, City Clerk By:

The Regents of the University of California
p
Dated: 0m / 4 , 20 iq
By: Jake McGu re
Controller, UC Agriculture & Natural
Resources
3D6 7138 Tax ID No.:

Packet Pg. 230 Attachment: C-4255 - Agreement - 2019 - The Regents of the University of California (4.11(a)---Approve Second Amendment to License Packet Pg. 231
Attachment: NOE License Agreement with UC Regents (4.11(a)---Approve Second Amendment to License Agreement with UC Regents)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following related to the purchase of one, 2024 Caterpillar D8 Dozer for the City of Redding Solid Waste Utility:
(1) Authorize the purchase using Sourcewell contract pricing, with a net delivered cost of $1,235,431.07 including all applicable taxes and fees; and (2) Authorize the City Manager, or designee, to approve future pricing adjustments, terms, and policy changes as needed due to inflation and unstable economic conditions up to a total of $30,000.

Fiscal Impact
Funding for the acquisition of this Caterpillar (CAT) D8 unit was planned for in the 10-year Rolling Stock Plan and included in the most recent budget approved by the Solid Waste Disposal Committee in June of 2024.

Alternative Action
The City Council may choose not to authorize the purchase using the Sourcewell contract and direct staff to use the competitive bid process.

Background/Analysis
The Solid Waste Utility (Utility) performs daily operations at the Richard Curry West Central Landfill (Landfill). Dozers are primary pieces of equipment relied upon to perform daily operational tasks. This new CAT D8 unit will replace a 2007 CAT D8T that currently has 18,221 total hours (equivalent to 1,093,260 miles). The Utility utilizes three dozers at the Landfill to push municipal solid waste, construction, and demolition materials from the working face to the fill area and earthwork. Earthwork includes covering the trash, spreading of stock piled material and ripping solid ground in borrow areas to make excavation of material more efficient for the MEETING DATE: November 5, 2024
ITEM NO. 4.11(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(b)--Purchase One 2024 Caterpillar D8 Dozer Using Sourcewell Contract Pricing
Michael Webb, Public Works
Director
Packet Pg. 232
Report to Redding City Council October 31, 2024
Re: 4.11(b)--Purchase One 2024 Caterpillar D8 Dozer Page 2 scrapers which self-load and haul material from the borrow areas to designated sites around the Landfill. Two of these dozers are D6 low ground pressure models which help during wet seasons to minimize damage to slopes, ramps, and working face areas while performing routine tasks.

The third dozer is a larger dozer, D8T, and is used for large earthwork operations including uphill movement of material.

The Utility refurbished the current 2007 D8T dozer in October of 2016 at approximately 11,000 hours for a cost of $363,045. Staff does not recommend another refurbishment of this unit due to the California Air Resource Board (CARB) rating of Tier 3 on the engine and 18,221 total hours on the frame. Purchasing a new D8 dozer equipped with a Tier 4 Final (highest current engine rating) will help the City of Redding (City) comply with CARB’s off-road use machinery emissions requirements while providing a reliable machine for daily operations.

This new unit is available under a Sourcewell competitively bid contract. Sourcewell develops national competitive solicitations that meet or exceed local standards, and offers its members the benefits derived from cooperative purchasing. Using the Sourcewell cooperative contract to purchase equipment saves significant staff time needed to prepare bid specifications and solicit individual quotations from vendors. The City also receives a significant price discount due to the economies of scale realized through the volume of purchases on a multi-agency cooperative contract.

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

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

Attachments
Caterpillar Contract 011723
011723-CAT Pricing
D8 Quote Revised
Packet Pg. 233
011723- CAT
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Solicitation Number: RFP # 011723

CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Caterpillar Inc., 100 NE Adams Street, Peoria, IL 61629 (Supplier).

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.

Sourcewell issued a public solicitation for Heavy Construction Equipment with Related Attachments and Technology from which Supplier was awarded a contract.

Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).

1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.

B. EXPIRATION DATE AND EXTENSION. This Contract expires April 14, 2027, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.

C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.

2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.

Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.

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Pursuant to Section 10(b), Supplier will subcontract certain obligations under this Contract to its dealers. Only those dealers that sign a Participation Agreement with Supplier obligating them to comply with the terms of this Contract will be eligible to provide Equipment, Products, or Services as a subcontractor under this Contract. In the event there is no dealer who has entered into a Participation Agreement available to provide Equipment, Products, or Services to a Participating Entity, Supplier will be under no obligation to provide Equipment, Products, or Services to such Participating Entity under this Contract. Supplier will provide a copy of this Contract to its dealers that would normally service Participating Entities and invite such dealers to enter into a Participation Agreement as a subcontractor of Supplier under the terms of this Contract.

All Equipment and Products provided under this Contract must be new and the current model.

Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.

This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.

B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.

In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.

C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.

3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the percentage list discount stated in the supplier’s proposal.

Upon request made to a participating CAT dealer, from a Participating Entity identifying themselves as a Sourcewell member by providing their Sourcewell member number and contract number; formal quotes will list all costs, including all delivery expenses, such as freight and permits (when required).

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Alternatively, Participating Entities may choose to make their own transportation arrangements. In such case, there would be no delivery charges from the local participating Cat dealer.

Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.

A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities.

Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.

Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.

Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.

B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.

C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.

When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.

Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.

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4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.

At a minimum, the request must:
• Identify the applicable Sourcewell contract number;
• Clearly specify the requested change;
• Provide sufficient detail to justify the requested change; • Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and • Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.

A fully executed Sourcewell Price and Product Request Form will become an amendment to this Contract and will be incorporated by reference.

5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities. Supplier may not enter into a contract with a U.S. Federal Government entity prior to obtaining necessary internal approvals and shall not be obligated to provide Equipment, Products or Services to any U.S. Federal Government entity under this Contract unless separately agreed in writing. Caterpillar may work with such parties and may agree to provide equipment or services under the Contract on a case-by-case basis.

The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.

Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 237 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 011723- CAT
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to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.

B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.

6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Participating Dealers with payments made to the Participating Dealers. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.

Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier’s Participating Dealer, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and Supplier’s Participating Dealer or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.

C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.

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D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:

1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or

2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.

E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.

7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:
• Maintenance and management of this Contract;
• Timely response to all Sourcewell and Participating Entity inquiries; and • Business reviews to Sourcewell and Participating Entities, if applicable.

B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.

8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:
• Participating Entity Name (e.g., City of Staples Highway Department); • Participating Entity Physical Street Address;
• Participating Entity City;
• Participating Entity State/Province;
• Participating Entity Zip/Postal Code;
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• Participating Entity Contact Name;
• Participating Entity Contact Email Address;
• Participating Entity Contact Telephone Number;
• Sourcewell Assigned Entity/Participating Entity Number; • Item Purchased Description;
• Item Purchased Price;
• Sourcewell Administrative Fee Applied; and
• Date Purchase was invoiced/sale was recognized as revenue by Supplier.

B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.

The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.

Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.

In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.

9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.

Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.

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10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.

B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid. Provided, however, that Supplier is permitted to subcontract certain of its rights and obligations to Supplier Participating Dealers for performance without Sourcewell’s prior written consent.

C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.

D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.

E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.

F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.

11. INDEMNITY AND HOLD HARMLESS
Intentionally omitted.

12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 241 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 011723- CAT
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under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.

13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. Intentionally Deleted.

B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.

C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.

D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.

14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.

15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.

16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.

17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:

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1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.

2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.

3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.

B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:

1. Nonperformance of contractual requirements, or

2. A material breach of any term or condition of this Contract.

The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
• Exercise any remedy provided by law or equity, or
• Terminate the Contract or any portion thereof, including any orders issued against the Contract.

18. INSURANCE
A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:

1. Workers’ Compensation and Employer’s Liability.

Workers’ Compensation: As required by any applicable law or regulation.

Employer's Liability Insurance: must be provided in amounts not less than listed below:

Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
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2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.

Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate

3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.

Minimum Limits:
$1,000,000 each accident, combined single limit

4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.

Minimum Limits:
$2,000,000
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.

B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.

Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.

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C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. A Participating Dealer may name a Participating Entity as an additional insured on a case-by-case basis.

WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or selfinsured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors.

D. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.

19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.

B. LICENSES. Supplier’s Participating Dealers must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Participating Dealer conducts with Sourcewell and Participating Entities.

20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 245 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 011723- CAT
Rev. 3/2022 13
Caterpillar: Confidential Green
Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.

21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Intentionally omitted.

22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.

Sourcewell Caterpillar Inc.

By: __________________________ By: __________________________ Jeremy Schwartz Patrick Kearns
Title: Chief Procurement Officer Title: Vice President Sales & Marketing, Construction Industries
Date: ________________________ Date: ________________________ Approved:

By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B 5/5/2023 | 9:41 AM CDT 5/24/2023 | 9:13 AM PDT
5/24/2023 | 12:16 PM CDT
DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 246 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) RFP 011723 - Heavy Construction Equipment with Related
Attachments and Technology
Vendor Details
Company Name: Caterpillar Inc
Address:
100 NE Adams St
Peoria, IL 61629
Contact: Sean Egel
Email: [email protected]
Phone: 309-675-1399
HST#:

Submission Details
Created On: Tuesday November 15, 2022 14:22:18
Submitted On: Tuesday January 17, 2023 16:10:22
Submitted By: Sean Egel
Email: [email protected]
Transaction #: aeaa61ae-0c73-4610-8208-b80e2e0b4448
Submitter's IP Address: 192.189.129.23
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 247 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Specifications
Table 1: Proposer Identity & Authorized Representatives General Instructions (applies to all Tables) Sourcewell prefers a brief but thorough response to each question. Do not merely attach additional documents to your response without also providing a substantive response. Do not leave answers blank; respond “N/A” if the question does not apply to you (preferably with an explanation).

Line
Item Question Response *
1 Proposer Legal Name (one legal entity only):
(In the event of award, will execute the
resulting contract as "Supplier")
Caterpillar Inc.
*
2 Identify all subsidiary entities of the Proposer
whose equipment, products, or services are
included in the Proposal.

N/A
*
3 Identify all applicable assumed names or DBA
names of the Proposer or Proposer's
subsidiaries in Line 1 or Line 2 above.

N/A
*
4 Provide your CAGE code or Unique Entity
Identifier (SAM):
11083 *
5 Proposer Physical Address: 5212 N O'Connor Blvd Ste. 1100, Irving, TX 75039 * 6 Proposer website address (or addresses): https://www.caterpillar.com/, https://www.cat.com/en_US.html * 7 Proposer's Authorized Representative (name,
title, address, email address & phone) (The
representative must have authority to sign
the “Proposer’s Assurance of Compliance” on
behalf of the Proposer and, in the event of
award, will be expected to execute the
resulting contract):

Primary Contact: Patrick Kearns
Title: Vice President Sales & Marketing
Address: 100 NE Adams St, Peoria, IL 61629
Email: [email protected]
Phone: (309) 675-5181
*
8 Proposer's primary contact for this proposal
(name, title, address, email address & phone):

Primary Contact: Sean Egel
Title: Governmental Sales Consultant
Address: 100 NE Adams St, Peoria, IL 61629
Email: [email protected]
Phone: (309) 675-1399
*
9 Proposer's other contacts for this proposal, if
any (name, title, address, email address &
phone):

Primary Contact: Marta Sevilla
Title: Governmental Marketing Manager
Address: 100 NE Adams St, Peoria, IL 61629
Email: [email protected]
Phone: (309) 578-1150
Table 2: Company Information and Financial Strength
Line
Item Question Response *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 248 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 10 Provide a brief history of your company,
including your company’s core values,
business philosophy, and industry longevity
related to the requested equipment, products
or services.

The history of Caterpillar is all about doing: creating, building, problem solving, innovating, testing, servicing and improving. We’re proud of the ingenious machines that are part of our rich heritage. More importantly, we are proud of the people who founded and built the company one breakthrough at a time. Beginning with Benjamin Holt and C. L. Best, the people of Caterpillar have always been - and continue to be - extraordinary.

In 1925, when Holt and Best merged to form their new tractor company, they used the name so familiar to people around the world: Caterpillar. The Caterpillar Tractor Company is today known as Caterpillar Inc.

With 2021 sales and revenues of $51.0 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment.

Our Worldwide Code of Conduct, first published in 1974, defines what we stand for and believe in, documenting the uncompromisingly high ethical standards our company has upheld since its founding in 1925. The Code helps Caterpillar employees put our values and principles into action every day by providing detailed guidance on the behaviors and actions that support our values of Integrity, Excellence, Teamwork, Commitment and Sustainability.

Caterpillar's Code of Conduct that can be found at
https://www.caterpillar.com/en/company/code-of-conduct.html *
11 What are your company’s expectations in the
event of an award?
Caterpillar is honored to have served Sourcewell and its members who have purchased Cat® construction equipment, attachments (work tools), and electrical power generation products through Sourcewell since 2008. Furthermore, we are proud to have
earned the Sourcewell Legacy Award in 2019, and have recently been awarded contracts 060122-CAT and 092222-CAT.

Caterpillar's expectations in the event of an award would be to focus on customer needs and continued growth across all governmental segments. Sourcewell has built a strong reputation within the industry that has shown the importance of how this cooperative contract delivers upon customer needs. This contract will be a top factor in our go to market strategy within our strong Cat dealer network. If awarded, we will send out an email to our entire sales force, applicable to governmental, introducing the contract along with ways to train our salesforce, market, and grow the contract.

We look forward to the opportunity to further grow business and serve member needs together in this new Heavy Construction Equipment RFP opportunity. *
12 Demonstrate your financial strength and
stability with meaningful data. This could
include such items as financial statements,
SEC filings, credit and bond ratings, letters
of credit, and detailed reference letters.

Upload supporting documents (as applicable)
in the document upload section of your
response.

Caterpillar Inc. is a publicly traded company, and as such, its financial information is updated quarterly and available at: https://investors.caterpillar.com/overview/default.aspx Caterpillar's 2021 Annual Report provides details about our financial position. Our SEC filing documents can be found at:
https://investors.caterpillar.com/financials/sec-filings/default.aspx. Both documents are included as attachments in our Financial Strength and Stability Documents.

As 2022 results are yet to be released, below you can find a summary of our full year 2021 financials.

In 2021 full year sales and revenues were $51B of which, North American sales were $22B. Operating profit was $6.9B with a profit per share of USD $11.83.

Dividends paid per share of USD $4.28.
*
13 What is your US market share for the
solutions that you are proposing?
Caterpillar is a significant contributor to the overall Heavy Equipment sector within the US and Canada. Market share information beyond what is made publicly available through our annual reports is considered confidential. *
14 What is your Canadian market share for the
solutions that you are proposing?
Caterpillar is a significant contributor to the overall Heavy Equipment sector within the US and Canada. Market share information beyond what is made publicly available through our annual reports is considered confidential. *
15 Has your business ever petitioned for
bankruptcy protection? If so, explain in detail.

No. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 249 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 16 How is your organization best described: is
it a manufacturer, a distributor/dealer/reseller,
or a service provider?  Answer whichever
question (either a) or b) just below) best
applies to your organization.
a)    If your company is best described as
a distributor/dealer/reseller (or similar entity),
provide your written authorization to act as a
distributor/dealer/reseller for the manufacturer
of the products proposed in this RFP. If
applicable, is your dealer network
independent or company owned?
b)    If your company is best described as
a manufacturer or service provider, describe
your relationship with your sales and service
force and with your dealer network in
delivering the products and services
proposed in this RFP. Are these individuals
your employees, or the employees of a third
party?
Caterpillar is a world class manufacturer which distributes products through a vast and capable independent dealer network. Our dealers are strong independently owned companies and in North America alone our 47 dealers have a combined net worth of billions of dollars. Their large valuation is a competitive advantage because it allows them to have the infrastructure to support customers regardless of location, industry, fleet size, or application.

Another advantage of independently owned dealers is that they know their customers and market well. They tailor their services specifically to their customers' needs.

Although we will sign this contract as a manufacturer, our Cat dealers will be given the
opportunity to avail themselves of the opportunity presented by the contract and will execute all the transactions with governmental customers as they do today. This includes but is not limited to consultation, quoting, accepting payment, delivery, warranty support, parts sales, and service.

Caterpillar dealers heartily embrace the other Sourcewell contracts currently available to them (032119-CAT, 092222-CAT, 062320-CAT, 060122-CAT). They have all been trained on contract usage. In fact, the current Heavy Equipment contract is leveraged by
95% of our dealers in North America. Caterpillar offers specific discounts to Sourcewell members. By using any Sourcewell Contract, our dealers agree to honor those discounts.
*
17 If applicable, provide a detailed explanation
outlining the licenses and certifications that
are both required to be held, and actually
held, by your organization (including third
parties and subcontractors that you use) in
pursuit of the business contemplated by this
RFP.

Caterpillar and its subsidiaries operate across the globe in a variety of markets that require Caterpillar to adhere to all locally mandated laws and regulations in order to do business. With regards to the territories covered by this RFP, Caterpillar will comply with applicable laws in order to do business in the territories described herein.

As an equipment manufacturer focused on quality, Caterpillar created the Caterpillar Quality Management System, which is a process-based, ISO 9001:2015 compliant quality management system used throughout Caterpillar to continually improve the quality of our products and services to meet customer, statutory, and regulatory requirements. It is registered with IRCA (International Register of Certificated Auditors) as Caterpillar Quality Management System CAT791A. *
18 Provide all “Suspension or Debarment”
information that has applied to your
organization during the past ten years.

N/A
*
Table 3: Industry Recognition & Marketplace Success
Line
Item Question Response *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 250 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 19 Describe any relevant industry awards or
recognition that your company has received
in the past five years
Please note: To list all the awards received in the past 5 years would unnecessarily lengthen our response. For brevity, we are highlighting some recognition received in 2020, 2021 and 2022. Also note there are many global awards.

Fortune Magazine #78 on the Fortune 500 2021
Fortune Magazine World's Most Admired Companies
World & North America Dow Jones Sustainability Index
Forbes Best Employers for diversity 2020 and 2021
#82 Best Global Brands- Interbrand 2021
The Wall Street Journal Best Managed Companies in 2020 and 2021 The Wall Street Journal World's Most Sustainably Managed Companies Human Rights Campaign Foundation Corporate Equality Index Dow Jones Sustainability Index (World and North America) 21 years World’s Most Sustainably Managed Companies – The Wall Street Journal United Way World Wide’s Global Corporate Leadership Program
U.S. President’s Volunteer Service Award from Junior Achievement Corporate Equality Index – Human Rights Campaign Foundation CSR China Top 100 – the 4th CSR China Education Award (China) China CSR Excellence Award – China Philanthropy Times (China)
Corporate Social Responsibility Research Center of Southern Weekly (China) Outstanding Contribution to Poverty Alleviation – China Foundation for Poverty Alleviation (China)
2020 Global 500 – Fortune Magazine
America’s Most Responsible Companies 2020, 2021 & 2022 – Newsweek Best-Managed Companies of 2020 & 2021 – The Wall Street Journal Top Companies for Customer Satisfaction – The Wall Street Journal The CEO Leaderboard: COVID-19 Reputation Rankings – SJR All-America Executive Team – Institutional Investor
Top 150 Global Licensors – Global License Best Global Brands Top 100 – Interbrand World’s Most Valuable Brands 2020 – Forbes
2020 Best Places to Work for Disability Inclusion – Disability Equality Index World’s Best Employers 2020 – Forbes
Best Employers for Women 2020 – Forbes
America’s Best Employers by State 2020 – Forbes
America's Best Employers for Diversity 2020 – Forbes
Best Employers for New Grads 2020 – Forbes
Global 2000 – Forbes 2020, 2021 & 2022
Best Employers for Veterans 2020 and 2021– Forbes
Top Veteran-Friendly Company – U.S. Veterans Magazine
#1 Great Place to Work – Great Place to Work Institute (Brazil) #1 Great Place to Work in the Ag Business - Great Place to Work Institute (Brazil) Chile’s 20 Best Places in 2020 to Work for LGBTQ Equality, pwc Human Rights Campaign
Top of Mind Company “Industry category” (Piracicaba, Brazil) Certification on Promoting Work-Life Balance in Hyogo Prefecture – Hyogo Work and Life Center (Japan)
Hyogo’s Women’s Success in Business Promotion Company – Hyogo Women Empowerment &
Promotion Center (Japan)
Hanada Award for WIN Akashi – Hyogo Women and Future Association (Japan) Hyogo Childcare Supporting Company Award (Japan)
Science & Technology Industry Summit: Outstanding Contribution – The Economic Observer (China)
*
20 What percentage of your sales are to the
governmental sector in the past three years
The governmental and educational sector is extremely important to Caterpillar. We have a dedicated team to support governmental customers and their specific needs. However, percentage of sales to governmental is considered confidential. *
21 What percentage of your sales are to the
education sector in the past three years
The governmental and educational sector is extremely important to Caterpillar. We have a dedicated team to support governmental customers, including the education sector, and their specific needs. However, percentage of sales to education is considered confidential.
*
22 List any state, provincial, or cooperative
purchasing contracts that you hold. What is
the annual sales volume for each of these
contracts over the past three years?
While Cat dealers would typically hold contracts with states and provinces, as an exception Caterpillar holds the state contract with Ohio and NY.

Additionally, we are contract holders with OMNIA and NASPO ValuePoint.

Just as we would never share Sourcewell sales information with other cooperatives, we also keep the sales volumes from other cooperatives confidential. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 251 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 23 List any GSA contracts or Standing Offers
and Supply Arrangements (SOSA) that you
hold. What is the annual sales volume for
each of these contracts over the past three
years?
Listed below are the current GSA contracts that Caterpillar holds:

SIN 333924 Utility Trucks and Tractors: 2020=$6,857,211 2021=$14,071,364 SIN 333120 Street Repair and Cleaning Equipment and Attachments:
2020=$0 / 2021=$143,837
SIN 335999 Power Distribution Equipment: 2020=$151,267.70 / 2021=$9,473.07 These contracts are used by Caterpillar, but we do not allow our dealers to use GSA contracts.

Final sales for the year 2022 have yet to be fully reported. *
Table 4: References/Testimonials
Line Item 24. Supply reference information from three customers who are eligible to be Sourcewell participating entities.

Entity Name * Contact Name * Phone Number *
Baltimore County, MD Jamie Donahue 410-952-6981 *
Washington DC Fleet Greg Harrelson 202-437-3799 *
Town of Scituate Mass. Kevin Cafferty 781-545-8732 *
Table 5: Top Five Government or Education Customers
Line Item 25. Provide a list of your top five government, education, or non-profit customers (entity name is optional), including entity type, the state or province the entity is located in, scope of the project(s), size of transaction(s), and dollar volumes from the past three years.

Entity Name Entity Type * State /
Province * Scope of Work * Size of Transactions * Dollar Volume Past ThreeYears * Virginia
Department of
Transportation -
Central
Government Virginia - VA State Department of
Transportation for Virginia.

Caterpillar requests that
Sourcewell treat the information
in this table as confidential.

Purchased 41 units. $12,321,972
*
State of Idaho Government Idaho - ID State of Idaho.

Caterpillar requests that
Sourcewell treat the information
in this table as confidential.

Purchased 39 units. $10,304,218
*
Alaska
Department of
Transportation
Government Alaska - AK State Department of
Transportation for Alaska.

Caterpillar requests that
Sourcewell treat the information
in this table as confidential.

Purchased 37 units. $12,176,875
*
Arkansas State Government Arkansas - AR State of Arkansas.

Caterpillar requests that
Sourcewell treat the information
in this table as confidential.

Purchased 28 units. $10,053,000
*
Suwannee
County
Government Florida - FL A county local to Florida.

Caterpillar requests that
Sourcewell treat the information
in this table as confidential.

Purchased 26 units. $6,567,420
*
Table 6: Ability to Sell and Deliver Service
Describe your company’s capability to meet the needs of Sourcewell participating entities across the US and Canada, as applicable.

Your response should address in detail at least the following areas: locations of your network of sales and service providers, the number of workers (full-time equivalents) involved in each sector, whether these workers are your direct employees (or employees of a third party), and any overlap between the sales and service functions.

Line
Item Question Response *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 252 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 26 Sales force. The Cat dealer salesforce is highly capable and trained in the construction industry.

The Cat dealer salespeople are consultants to their customers and advise their customers on the best solutions for their application and job. As a manufacturer we request our dealers to follow strict training protocols to ensure our sales force remains current on all product updates. Specifically, as it relates to governmental sales, each dealer has one or more people named to be a key liaison between us as manufacturer and their dealer sales team. They're offered additional in depth training on Sourcewell and ensures that all contract terms are followed.

Caterpillar has Operational Excellence Programs that recognize dealers' excellence in marketing and sales processes and operations, among other areas of the business.

In North America, our dealers employ more than 53,000 people across the machine, energy, parts and service divisions. The dealer sales teams are supported by a network of Caterpillar professionals. Each dealer has in territory support of 5 to 8 Caterpillar sales/marketing employees. It is the responsibility of these people to ensure that the dealer and Caterpillar are working well together to constantly improve and to adapt to marketplace changes. Beyond the territory experts, the sales and marketing department at Caterpillar is staffed by more than 600 people whose mission is to focus on customer satisfaction. Even more are employed "behind-the scenes" to ensure industry leading product design, up to date product information, and maintaining the ease of doing business in an increasingly connected marketplace. *
27 Dealer network or other distribution
methods.

The Cat dealer network is key to the success of our company. Boasting over 160 dealers throughout 193 countries worldwide, the Cat dealer network is widely considered to be the best in industry. Within Canada and the United States, we have 47 dealers and more than 800 dealer owned locations that sell and rent equipment.

Please refer to our directory listing of Cat dealer locations and our easy to view locations map in the attached "Additional Documents" zip file. Cat dealers are independently-owned. Each dealer has multiple branches and a mobile service fleet than can serve customers regardless of location. These are full physical locations our governmental customers can use.

Because of the size of Cat dealers, they are exceptionally capable to serve governmental customers. Dealers have trained specialists that cover many industries including heavy equipment.

Collectively, Cat dealers' large net worth permits them to stock a high volume of replacement parts - allowing governmental customers the fastest turnaround on parts availability and repair time. Cat dealers recognize the importance of governmental business to their overall success and they each have one or more governmental specialists whose job it is to serve governmental agencies well.

Please refer to the Cat dealer locations map included in "Additional Documents". Additionally, you can leverage https://www.cat.com/en_US/support/dealerlocator.html to locate dealers by location. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 253 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 28 Service force. At Caterpillar we are very proud of the saying "The sales department sells the first machine; the service department sells every one after that." The Cat dealer network in North America collectively employs more than 20,000 factory trained technicians, parts experts, product support managers and
other service-oriented staff. These subject matter experts are supported by the best repair shop equipment and materials. As machines and engines are constantly updated, so too are our service experts. We conduct product-specific training every week of the year. Technician shortage is an industry-wide concern, but because Cat dealers are large, long established companies, they can offer strong compensation and benefit packages that encourage the best people to seek employment and to retain them once hired. Caterpillar works very closely with dealers and through a program called "ThinkBIG", we are able to keep the pipeline of high quality employees full. ThinkBIG is a Caterpillar-specific instructional program that pays the student while they train to become a technician. It is a 2-year program with lab and classroom work, and a paid internship at a sponsoring Cat Dealer. As a result, the student will graduate with an accredited degree backed with over 2,000 hours of work experience.

In addition to the technicians and mechanics that work on the machines directly, each dealer has a service support staff that includes customer-facing consultants who are responsible for working with customers to set up maintenance and repair schedules to ensure the best possible up-time.

Collectively, service support staff makes up the bulk of each dealers' staff. Roughly half of their personnel investment goes to ensuring customer success via product support.

The dealer service teams are supported by a network of Caterpillar professionals.

Each dealer has in territory support of 5 to 8 Caterpillar parts/service employees. It is the responsibility of these specialists to ensure that the dealer and Caterpillar are working well together to constantly improve and to adapt to marketplace changes.

Beyond the territory experts, the service and support groups at Caterpillar are staffed by thousands of people whose mission is to focus on post-sale customer satisfaction.

Even more are employed "behind-the-scenes" to ensure technical literature is up to date, service standards are adhere to and repair questions are answered quickly. We exceed our 95% 2-hour response rate target in responding to dealer service inquiries. *
29 Describe the ordering process. If orders
will be handled by distributors, dealers or
others, explain the respective roles of the
Proposer and others.

Our simple order process has been and will continue to be well appreciated by Sourcewell and Sourcewell members:
1) When a member decides to purchase a new Cat machine, they simply include their Sourcewell member number on the Purchase Order they issue to the Cat dealer. 2) The Cat dealer then accepts the PO, issues the invoice, accepts payment and delivers the machine.
3) After the machine has been delivered, the dealer, as part of their normal process, includes the member number when filing their sales claims with Caterpillar. 4) At month's end, Caterpillar aggregates these reports and sends the sales information quarterly to Sourcewell along with the administrative fee.

IMPORTANT NOTE: Should a member wish to include additional terms and conditions to this contract, or to otherwise request a Participating Addendum, that agreement / PA should be executed between the member and Cat dealer directly. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 254 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 30 Describe in detail the process and
procedure of your customer service
program, if applicable.  Include your
response-time capabilities and
commitments, as well as any incentives
that help your providers meet your stated
service goals or promises.

We are proud that our reputation stands on having the best customer support in the industry. In fact, our capabilities are industry leading. In the event a customer ever has a problem or issue with a machine, their Cat dealer is empowered to resolve that issue locally. If the problem is a result of a defect in material or workmanship, within the standard warranty period, the local Cat dealer will work with Caterpillar to apply the appropriate warranty, and keep the customer informed. Every Cat dealer has a common detailed service process in place. Caterpillar supports and verifies that all the dealer service technicians are supplied with the tools and equipment needed to repair all Cat products.

Technicians have access to an electronic library of technical information including Service Letters, Technical Information Bulletins, System Operations, Troubleshooting and Disassembly and Assembly manuals. These manuals are provided for every Cat product. Each dealer also has one or more "Technical Communicators" who are dedicated to supporting the service technicians by acting as a liaison between the shop personnel and Caterpillar.

The service technicians also have a dealer support network (DSN) system with direct access to Caterpillar's Service Engineers. Caterpillar responds to more than 95% of all high priority tickets within one hour.

Caterpillar is got everything customers need to keep their Cat machines in top shape. Whether they want Genuine Cat parts, manuals and resources to do maintenance and repairs themselves, or prefer to have one of our expert dealer technicians do the work. We make it easy to keep their Cat equipment running.

Some of our service solutions include:
-Cat Fleet Management (Condition Monitoring) - Lowers the total cost of ownership of machine. By connecting your fleet, you will be able to: track the location of your assets, monitor & manage the fuel consumption, identify the operators who would need extra training, and plan & schedule your maintenance. All of which will maximize your uptime.
-Customer Value Agreements (CVA) - Customizable plans for your equipment new or used - to do more work with lower, more predictable costs. It's a convenient plan to get the most from your equipment throughout its life. Examples of CVAs may include but are not limited to: Maintenance CVAs, Component CVAs, and Machine CVAs. -S•O•S SM Services - A fluid analysis program that provides results that you can trust including trend analysis that provides benefit to your machine and fleet. -Cat Inspect - A digital way to perform checklists, pre-work inspections, annual inspections and PM checklists. All of which can be captured in the easy to use app. *
31 Describe your ability and willingness to
provide your products and services to
Sourcewell participating entities in the
United States.

We are proud to serve all geographic areas and all Sourcewell member sectors within the United States to offer our complete products and services. Caterpillar has successfully and proudly utilized Sourcewell to sell machines in all 50 states.

Caterpillar's global reach and presence is unmatched in the industry, and we serve customers around the globe. Our manufacturing, marketing, logistics, services, research and development and related facilities, along with our dealer locations, total more than 500 locations worldwide. North America specifically is home to 47 factories and 10 parts distribution centers, which make up 40% of our global footprint! The Caterpillar parts network delivers 98% of the parts orders within 24 hours.

In addition to our facilities listed above, Cat Parts are available through the Cat dealer network in at different price points, including: Cat New, Cat General Duty and Cat Reman. The Cat dealer network also have the capability to provide dealer exchange components, dealer rebuilt components and used parts when available.

Each dealer can match the appropriate parts offering to match the customers application and productivity. For example, Cat dealers offer Cat factory remanufactured parts (Cat reman) to follow the same quality, performance, and reliability as Cat new parts. This product line provides the same as new parts warranty, includes critical engineering changes, reduces waste, and protects the environment and saves critical repair time on machines. Cat reman also uses 100% Cat parts in the remanufacture process.

Our 1.4 million parts are available to order 24/7 on Parts.Cat.Com. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 255 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 32 Describe your ability and willingness to
provide your products and services to
Sourcewell participating entities in Canada.

We are serve all geographic areas and all Canoe member sectors within Canada with our complete product and service offerings. In fact, we see the Canadian market as a significant growth opportunity for Canoe through Sourcewell contract usage. We have gained momentum with our current contract 032119-CAT in Canada.

Caterpillar's global reach and presence is unmatched in the industry, and we serve customers around the globe. Our manufacturing, marketing, logistics, services, research and development and related facilities, along with our dealer locations, total more than 500 locations worldwide. North America specifically is home to 47 factories and 10 parts distribution centers, which make up 40% of our global footprint! The Caterpillar parts network delivers 98% of the parts orders within 24 hours.

In addition to our facilities listed above, Cat Parts are available through the Cat dealer network in at different price points, including: Cat New, Cat General Duty and Cat Reman. The Cat dealer network also have the capability to provide dealer exchange components, dealer rebuilt components and used parts when available.

Each dealer can match the appropriate parts offering to match the customers application and productivity. For example, Cat® dealers offer Cat® factory remanufactured parts (Cat reman) to follow the same quality, performance, and reliability as Cat new parts. This product line provides the same as new parts warranty, includes critical engineering changes, reduces waste, and protects the environment and saves critical repair time on machines. Cat reman also uses 100% Cat parts in the remanufacture process.

Our 1.4 million parts are available to order 24/7 on Parts.Cat.Com. *
33 Identify any geographic areas of the United
States or Canada that you will NOT be
fully serving through the proposed contract.

We are proud to serve all geographic areas of the United States and Canada. *
34 Identify any Sourcewell participating entity
sectors (i.e., government, education, not-forprofit) that you will NOT be fully serving through the proposed contract. Explain in
detail. For example, does your company
have only a regional presence, or do other
cooperative purchasing contracts limit your
ability to promote another contract?
We are proud to serve all Sourcewell Member sectors within the United States and Canada with our complete product and service offering through Sourcewell.

Caterpillar's cooperative purchasing contracts are non-exclusive; i.e. none of them restrict Caterpillar from promoting our Sourcewell contracts. *
35 Define any specific contract requirements
or restrictions that would apply to our
participating entities in Hawaii and Alaska
and in US Territories.

There are no restrictions or limitations for sales to members in Hawaii, Alaska or U.S. Territories. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 256 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Table 7: Marketing Plan
Line
Item Question Response *
36 Describe your marketing strategy for
promoting this contract opportunity.

Upload representative samples of your
marketing materials (if applicable) in
the document upload section of your
response.

Our current marketing strategy with Sourcewell contract 032119-CAT proves to be effective with year over year sales growth. Our primary strategy to promote this contract with participating entities is through our Cat dealers' sales force. We provide group and individual training to our dealer sales reps, focusing on benefits from selling through cooperative contracts vs bids. We proudly announce the award publicly through our multiple customer facing touchpoints which may include:
1) Press Release
2) Government Solutions Magazine (Caterpillar produced magazine distributed to governmental customers in the US and Canada)
3) Government Training & Safety Days (Government customer training events at Caterpillar facilities)
4) Announcement in our governmental customer e-newsletter 5) Feature on our governmental focused website: www.cat.com/governmental 6) Announcement on our social media channels (FB, Instagram, LinkedIn) 7) Display mentions at all governmental tradeshows we attend. (NACE Annual Conference, APWA Snow Show, Waste EXPO, GFX, NIGP Annual Forum & Products Expo, and APWA PWX & Annual Roadeo)
8) Update literature with the new contact information. (An updated version can be found within our attached marketing plan attachment.)
*
37 Describe your use of technology and
digital data (e.g., social media,
metadata usage) to enhance
marketing effectiveness.

Caterpillar and the Cat dealer network are leaders in using technologies to reach our customers.
- Focus on organic search and Search Engine Optimization (SEO) to help our customers digitally find our products and the information they need. - Leverage Caterpillar's social media platforms (YouTube, Facebook, LinkedIn, Instagram, etc) and ability to target governmental segments.
- Leverage predictive data analytics (past purchase history and financing information) to recognize in advance when customers may be considering replacing machines they currently own.
- Leverage Deltek's GovWIN data in the US and Canada for governmental lead generation.

Caterpillar has a Customer Interaction Center available 24/7 who handles digital leads received from cat.com, social media, etc. Our team qualifies those leads and passes them on to our Cat Dealer network using the Salesforce platform (Customer Relationship Management system). We have processes that allows us to confirm our Cat dealers have reached out to those customers.
*
38 In your view, what is Sourcewell’s role
in promoting contracts arising out of
this RFP? How will you integrate a
Sourcewell-awarded contract into your
sales process?
Sourcewell is a well-respected contracting agency within the public procurement industry. It is important, in the event of an award, that our products and logos be included in Sourcewell marketing and website. We believe that the most important role that Sourcewell can play in marketing our contract and products, is to market themselves and promote contract purchasing across the industry.

In the event of an award, Caterpillar will put high priority in building awareness and enthusiasm within our dealer network and customer base to leverage the Sourcewell contract as our go to market strategy.
*
39 Are your products or services
available through an e-procurement
ordering process? If so, describe your
e-procurement system and how
governmental and educational
customers have used it.

We do offer a e-procurement ordering process for parts via parts.cat.com. We can also integrate into a variety of procurement systems for high volume customers.

Our wide machine portfolio and multiple configurations per machine model allows us to provide the best machine for the customer need. Our Cat dealers are trained to configure our equipment and advise the customer on the best machine and configuration for their application. Therefore, a consultative salesperson is integral in this process, and we do not use an e-procurement machine ordering process.
*
Table 8: Value-Added Attributes
Line
Item Question Response *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 257 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 40 Describe any product, equipment,
maintenance, or operator training
programs that you offer to
Sourcewell participating entities.

Include details, such as whether
training is standard or optional,
who provides training, and any
costs that apply.

All dealers offer basic operation, safety, and maintenance training with every sale. Should a customer desire more advanced training, such as productivity improvement or advanced repairs, each of our dealers can supply that training. Often there is a cost associated with that specific training and it would be negotiated between the dealer and the customer.

Caterpillar also offers training programs directly to customers in three areas: operation, safety and service. Members may access courses online, via CD's, or through instructor-led classes leading to operator certifications. The fees for these services vary depending on the depth of training desired. These high-level instruct-led courses can be conducted at one of our dedicated training facilities in the US or on a customer's local site using their own equipment.

Caterpillar also has a licensed supplier that offers Cat Simulators to teach operational techniques from real job sites. For more information visit: https://catsimulators.com/ *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 258 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 41 Describe any technological
advances that your proposed
products or services offer.

Cat technology gives you the power to track, monitor, automate and manage all types of assets- from a single machine, engine, to an entire fleet. We even offer technologies that protect your people. Listed below are a few technology offerings (standard and optional) that are used throughout the world in our Cat equipment.

Next Generation Excavators:

Cat Vision Link - Delivering valuable data with connected machine.

Cat Payload - Precisely load targets every time for faster cycle times.

Cat Skid Steer and Compact Track Loaders:

Electronic Torque Management System - Helps maximize performance, minimize fuel consumption.

Sealed and Pressurized Cabs - Provides a cleaner, quieter work environment.

Cat Backhoe Loaders:

Selectable Power Management Modes - Saves fuel while maintaining machine performance.

Load-Sensing Hydraulic System - Provides excellent response for improved hoe and loader productivity and greater bucket breakout force.

Cat Tractors:

Stable Blade - Produces a smoother surface finish.

Autocarry - Automatic raising and lowering of blade to maximize pushing capacity and prevent excessive track slippage.

Cat Wheel Loaders:

Operator Assist - Helps the operator reduce tire slippage, automatic rimpull management and provides up to 10% better cycle time resulting in higher productivity.

Autodig - consistent high bucket fill factors delivers up to 10% more productivity.

Cat Off Highway Trucks:

Adaptive Economy Mode - Automatically optimizes fuel consumption without affecting productivity just pressing a button.

Truck Production Management System (TPMS) - Weighting system with side indicator lights showing the operator when they are on last pass and when the truck is fully loaded.

Cat Articulated Trucks:

Advanced Automatic Traction Control (AATC) - Technology that proactively applies inter- and cross-axle differential locks ‘on-the-go’ when needed without assistance from operator's interaction.

Cat Detect with Stability Assist - Warns the operator if machine is approaching a pre-set angle during operation, when driving and tipping.

Machine/Operator Safety Technology:

Machine Security System - Gives you control over who can operate your machines and when. Prevents theft.

Seat Belt Reminder - Cost effective safety upgrade that significantly improves operator safety.

Cat Detect for Personnel - Alert ground crews in close proximity to mobile equipment. Cat® Detect for Personnel sounds an immediate, unique alert that cuts through the white noise of engines, generators, cell phones and job site chatter to protect ground workers from equipment backing incidents.

Cat Command - Remote control in operations where an operator could be at safety risk.

Whether you're looking to add technology to your current machine, or want new ways to get more value out of the technology on your equipment, we have options for you. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 259 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 42 Describe any “green” initiatives
that relate to your company or to
your products or services, and
include a list of the certifying
agency for each.

Caterpillar shares the concerns of governments and the public about the risks of climate change and supports global efforts to mitigate its impact. We are committed to contributing to a reduced-carbon future.

We demonstrate this in many ways including through our significant progress in reducing greenhouse gas (GHG) emissions from our operations and our continued investment in new products, technologies and services.

Caterpillar is engineering a brighter future through:
- Product innovations
- Advanced technologies leveraging know-how and R&D
- Usage of renewable fuels and fluids
- Solutions to improve jobsite efficiency
- Maintenance solutions
- Manufacturing operations’ carbon efficiency
Caterpillar's long-standing commitment to sustainability inspires us to set and achieve meaningful environmental, social and governance (ESG) goals and develop innovative products, technologies and services to support our customers on their sustainability journey.

Caterpillar is fully committed to our customers’ success by not only the design and manufacture of durable, reliable, innovative and rebuildable construction equipment, but also through our extensive and unmatched dealer network that provides you the best service and support to keep your equipment running, regardless of the environment or challenges.

We consider this as we work toward a vision of a world in which people's basic needs - such as shelter, clean water, education, and reliable energy - are fulfilled. We provide work environments, products, services, and solutions that make productive and efficient use of resources as we strive to achieve our vision. We believe this commitment supports the enduring success of our customers, stockholders, dealers, and our people.

Caterpillar is a proud 20-year member of the Dow Jones Sustainability Indices, including both the World and
North America Indices. The annuals DJSI process follows a best-in-class approach, evaluating numerous corporate economic, environmental, and social performance factors.

For more on sustainability please visit our full report attached in the Financial and Stability attachment section.
*
43 Identify any third-party issued ecolabels, ratings or certifications that your company has received for
the equipment or products
included in your Proposal related
to energy efficiency or
conservation, life-cycle design
(cradle-to-cradle), or other
green/sustainability factors.

Plants certified with IDO 14001:2004 Environmental Management System include:
1) Anchor Coupling - Goldsboro NC, ISO 14001:2004- Sept 2018 2) Anchor Coupling - Menominee - ISO 14001: 2015 - Jan. 2021 3) Gen Sets - Newberry 0 ISO 14001:2004 - Nov. 2017
4) Mapleton - 14001:2004 self-certification issued Jan 2013 5) Reman Services - Corinth MS - ISO 14001-2015- Sept. 2021 6) Reman Services - Franklin - ISO 14001:2004-May 2017
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 260 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 44 Describe any Women or Minority
Business Entity (WMBE), Small
Business Entity (SBE), or veteran
owned business certifications that
your company or hub partners
have obtained. Upload
documentation of certification (as
applicable) in the document
upload section of your response.

Caterpillar has long drawn on the diversity of its people as a source of innovation and competitive advantage. We are proud that our people come from across the globe, with diverse backgrounds, experiences and perspectives. Despite our differences – in geography, culture, language and business – we are one Caterpillar, one company united by these common principles with a shared commitment to the highest standards of conduct.

For example: Foley Equipment, a Cat® dealer, with territory primarily in Kansas and Missouri, is woman owned. In addition to Foley equipment, there are 31 other women in our North American dealer network who hold the titles of President, Vice President or Director.

One of the more recognized initiatives within Caterpillar's Global Supply Network Division is the Caterpillar Inc. Proprietary Information Supplier Diversity Program which spurs economic growth by increasing business opportunities to minority-owned, women-owned, veteran and service disabled veteran-owned, small disadvantaged businesses and those certified in HUBZones, all while ensuring expectations are met with regards to quality, velocity, capacity, and cost. Currently more than 37% of our direct and indirect purchasing is conducted with suppliers in these categories.

Caterpillar is a proud member of the National Minority Supplier Development Council (NMSDC). We also use the System for Aware Management (SAM), SBA, and NMSDC databases to locate SDB, VOSB, SDVOSB and HUBZone suppliers.

Supplier Diversity is discussed with Global Supply Network Division leadership during the Monthly Operating Results Review meetings. This in turn forces accountability for supplier inclusion by measuring drivers, such as the number of sourcing projects, which include Divers Suppliers and the values of the projects in which they participate. The goal is to create greater transparency to determine which teams are creating inclusive environments and which are not.

For more detail, please see our attached 2021 Global Diversity & Inclusion Report in the Additional Documents folder.
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 261 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 45 What unique attributes does your
company, your products, or your
services offer to Sourcewell
participating entities? What makes
your proposed solutions unique in
your industry as it applies to
Sourcewell participating entities?
BEST OVERALL VALUE / LOWEST LIFE CYCLE COST:

Cat products deliver the best value for the money. While we rarely have the lowest initial purchase price, we are happy to demonstrate to customers that our machines offer the lowest overall owning and operating costs when factors such as fuel efficiency, repair frequency, productivity, and resale value are factored in. We believe that government agencies are tasked to be the best stewards of taxpayer funds and our products can prove that they are the best solution. Sourcewell members are in the best position to allow these discussions to take place in contrast to a local bid situation where the focus is often only on initial price.

CAT SAFETY SERVICES / SAFETY FEATURES:

In addition to the tangible, measurable aspects of the life cycle cost equation, we also bring our focus on safety to every product that we manufacture. Quantifying a human life or debilitating injury is impossible, but each machine has industry-leading features that strive to minimize the possibility for accidents.

In addition to built-in safety features, we also offer products and services that are unique in the industry.

Cat Safety Services include, but are not limited to, the following:

Safety Perception Survey - Used to establish a baseline safety-culture assessment by measuring employee perceptions and gaps in beliefs between management and employees on the front line across 20 Safety Culture Indicators.

Safety Leadership Assessment - Used to measure individual safety leadership capability around four domains of safety leadership.

Worksite Assessment - Compares onsite observations of safety practices and employee interview data to the documented processes and procedures.

Continuous Improvement Process - Involving all levels of the organization to generate engagement, involvement, and ownership in the safety improvement process.

Training - can be conducted with e-learning courses on http://safelyhome.cat.com, instructorled training products or as Supplier-facilitated workshops. Topics available include, but are not limited to, safety culture, effective communication, supervisor safety training, recognition, etc.

Fleet Management & Services through Caterpillar Job Site Solutions:

We leverage the power of Caterpillar and our dealers by designing innovative solutions that solve customer problems and that have a positive impact on their bottom line. We approach each site differently, striving to deliver exactly what’s needed — no more, no less.

Every solution includes a unique mix of Caterpillar and dealer capabilities using industry best products, technology, services and expertise necessary to meet the customer’s definition of success. The goal is to leave customers better off tomorrow than they are today.

Details on products and services are available at www.cat.com/safety. More information can be found in the additional document section. Pricing can be found in the pricing document section.
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 262 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Table 9: Warranty
Describe in detail your manufacturer warranty program, including conditions and requirements to qualify, claims procedure, and overall structure. You may upload representative samples of your warranty materials (if applicable) in the document upload section of your response in addition to responding to the questions below.

Line
Item Question Response *
46 Do your warranties cover all products, parts, and
labor?
Caterpillar has extensive warranty coverage. Please see our warranty statements attached in the warranty information documents. *
47 Do your warranties impose usage restrictions or
other limitations that adversely affect coverage?
Please see applicable warranty statements in the attached documents. * 48 Do your warranties cover the expense of
technicians’ travel time and mileage to perform
warranty repairs?
Caterpillar does not cover travel time and mileage. Dealer territories vary considerably from state to state as do their policies about travel time and mileage during the warranty period.
*
49 Are there any geographic regions of the United
States or Canada (as applicable) for which you
cannot provide a certified technician to perform
warranty repairs?  How will Sourcewell
participating entities in these regions be provided
service for warranty repair?
One of our key differentiating strengths is our ability to service equipment regardless of where it is located. Please see applicable warranty statements in the attached documents. *
50 Will you cover warranty service for items made by
other manufacturers that are part of your proposal,
or are these warranties issues typically passed on
to the original equipment manufacturer?
Warranty service for machines ordered from a Caterpillar facility are generally provided by Caterpillar and performed by Cat dealers. Some items, such as tires, are covered under their manufacturers' warranties. *
51 What are your proposed exchange and return
programs and policies?
Please see applicable warranty statements in the attached documents. * 52 Describe any service contract options for the
items included in your proposal.

We have a large variety of service contract options which can all be customized according to customer needs. Below are just two examples.

More solutions are available and we encourage members and dealers to explore all options.
1) Equipment Protection Plans (EPP): After the initial warranty period ends, members may choose to purchase additional protection plans to reduce their exposure to unplanned costs. These policies are written based on months and hours of operation. There are four standard levels of coverage:
1) Powertrain
2) Powertrain + Hydraulics
3) Powertrain + Hydraulics + Technology
4) Premier
A description of all these options is included in the attached Equipment Protection Plans document. EPP can be purchased at the same time as the machine purchase, or anytime before the standard warranty expires. 2) Customer Value Agreements (CVA's):

A member may choose to enter into an agreement with their Cat dealer to perform routine maintenance and/or repairs. These contracts are customizable based on member needs.

The selling Cat dealer can take responsibility for some or all the required service and maintenance needs to allow the agency to gain efficiency by focusing on the performance demands more than maintenance. CVA's are a useful tool to manage expenses. CVAs can be purchased at the same time as the machine purchase, or anytime after. Cat Financial also offers CVAs, which can be performed by Cat dealers in the United States, and are particularly helpful for customers who move their machine fleet to multiple locations which may have different servicing Cat dealers. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 263 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Table 10: Payment Terms and Financing Options
Line
Item Question Response *
53 Describe your payment terms and accepted payment
methods.

Cat dealers are independently owned businesses. As such their payment terms and accepted payment methods vary, but all will be stated on individual invoices. The most common terms are net 30. *
54 Describe any leasing or financing options available for use by educational or governmental entities.

We offer both leasing and financing options to governmental members of Sourcewell at rates lower than available to the general public.

Caterpillar has its own financing arm, Cat Financial.

Cat Financial was founded in 1981 and serves Cat customers and dealers. With over 1,900 employees, Cat Financial is active in more than 40 countries covering more than 148,000 customers worldwide.

Cat Financial offers you a complete solution for your acquisition needs:
- Equipment & Attachments
- Parts
- Service
- Rebuilds
Financial products are aligned and customized with the project and work site requirements such as operating lease, loan or finance lease. Find more information from Cat Financial here:
https://www.cat.com/en_US/support/financing-protection.html *
55 Describe any standard transaction documents that you propose to use in connection with an awarded contract
(order forms, terms and conditions, service level
agreements, etc.). Upload a sample of each (as
applicable) in the document upload section of your
response.

Cat dealers are independently owned businesses. As such their standard transaction documents will vary.
*
56 Do you accept the P-card procurement and payment
process? If so, is there any additional cost to Sourcewell participating entities for using this process?
Because Cat dealers will be receiving payments directly from members, accepting P-card procurement will be at their discretion.

Many dealers do accept this method without additional fees. Some have limitations on the amount that can be processed.
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 264 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Table 11: Pricing and Delivery
Provide detailed pricing information in the questions that follow below. Keep in mind that reasonable price and product adjustments can be made during the term of an awarded Contract as described in the RFP, the template Contract, and the Sourcewell Price and Product Change Request Form.

Line
Item Question Response *
57 Describe your pricing model (e.g., line-item discounts or product-category discounts). Provide detailed pricing data (including standard or list pricing and the Sourcewell
discounted price) on all of the items that you want
Sourcewell to consider as part of your RFP response. If applicable, provide a SKU for each item in your proposal.

Upload your pricing materials (if applicable) in the
document upload section of your response.

We offer a deep list discount off the current Caterpillar machine and work tool list prices to all Sourcewell members. We have provided base machine list pricing in the document pricing section.

Base machines must be properly configured with other mandatory and optional items from the price list before they are considered operational. For the execution of the agreement we will ask our Cat dealer and Sourcewell member to use the Caterpillar price list that is current at the time of the quote. Dealers, in consultation with the member, will configure the machine to the desired specifications and apply the stated list discount to that configured list price amount. Dealer and members should remember to factor in any expected price increases if a machine will be built to order. The pricing document, in the applicable pricing document attachment section, shows the list discount offered for each new machine.

Additionally, we are pleased to offer a list discount of 15% off all products and consulting services under Cat Safety Services. *
58 Quantify the pricing discount represented by the pricing proposal in this response. For example, if the pricing in your response represents a percentage discount from
MSRP or list, state the percentage or percentage range.

Pricing in this proposal is a percentage discount from list on current machine and work tools list prices. Our discount range varies between 3 - 34% off of the list price depending on the product family or model.
*
59 Describe any quantity or volume discounts or rebate
programs that you offer.

Our dealers are empowered to consider purchase order volume, repeat purchases, etc. They may offer members additional discounts and /or services at their discretion.
*
60 Propose a method of facilitating “sourced” products or related services, which may be referred to as “open
market” items or “nonstandard options”. For example, you may supply such items “at cost” or “at cost plus a
percentage,” or you may supply a quote for each such
request.

Sourced goods / Open Market Items are available to members from Cat dealers. The prices for these good or services will represent fair marketing value and will be determined between the member and the selling dealer. We encourage our dealers and members to use these options as it facilitates complimentary products and streamlines the procurement process. Customers and dealers are responsible for including their Sourcewell member numbers on all documentation related to these
purchases. Caterpillar Inc. is not a party to these sales and is exempted from including them in quarterly reports.

For audits, inclusion of a customer's Sourcewell member number on the PO and /or invoice shall be deemed sufficient.
*
61 Identify any element of the total cost of acquisition that is NOT included in the pricing submitted with your response.

This includes all additional charges associated with a
purchase that are not directly identified as freight or shipping charges. For example, list costs for items like predelivery inspection, installation, set up, mandatory training, or initial inspection. Identify any parties that impose such costs and their relationship to the Proposer.

Machines are unique in their requirements for preparation prior to use. Some may require local final assembly due to their large size others may have locally installed options (fire suppression, beacons, auto lube systems for example). When a dealer issues a quote for a machine, any dealer costs (like pre-delivery inspection, installation, set up, training, etc.) will be itemized separately and are not subject to the Caterpillar list discount for Sourcewell members. *
62 If freight, delivery, or shipping is an additional cost to the Sourcewell participating entity, describe in detail the complete freight, shipping, and delivery program.

There is no additional cost to members who choose to pick up their machines from the Cat dealer. Dealers may charge fees for delivery to the Sourcewell member's location.
*
63 Specifically describe freight, shipping, and delivery terms or programs available for Alaska, Hawaii, Canada, or any
offshore delivery.

Just as for members in the 48 contiguous states, there is no additional cost to members who choose to pick up their machine from their Cat dealer. Dealers may charge fees for delivery to the Sourcewell members' location.
*
64 Describe any unique distribution and/or delivery methods or options offered in your proposal.

Machines are large purchases and if there are unique Sourcewell member requirements our dealers will be happy to discuss on a case by case basis.
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 265 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Table 12: Pricing Offered
Line
Item The Pricing Offered in this Proposal is: * Comments 65 b. the same as the Proposer typically offers to GPOs, cooperative procurement organizations, or state purchasing departments.

Caterpillar wants to provide
the governmental customer
the best list discount possible
to allow them to be good
stewards of tax-payers funds.

We want our governmental
customers to have the ability
to choose which cooperative
contract better fits their needs.

Table 13: Audit and Administrative Fee
Line
Item Question Response *
66 Specifically describe any self-audit process or program that you plan to employ to verify compliance with your proposed Contract with Sourcewell. This process includes ensuring that Sourcewell participating entities obtain the proper pricing, that the Vendor reports all sales under the Contract each quarter, and that the Vendor remits the proper administrative fee to Sourcewell. Provide sufficient detail to support your ability to report quarterly sales to Sourcewell as described in the Contract template.

We plan to continue our very robust process to ensure
reporting speed, accuracy, and contract compliance.

Caterpillar and our Cat dealers have very close and trusting relationships. Our dealers are long-established, and the current process (under contract #032119-CAT) is working well. 1) To ensure pricing accuracy, we maintain our current
Sourcewell customer discount sheet on our dealer facing pricing pages. Dealers integrate these numbers automatically in their quoting software.
2) To ensure new machines and work tool sales are
recorded properly, we use our post-sale credit system. In a nutshell, this means that we
corporately support the pricing offered in this contract at a level below what's available to other customers. To receive this additional monetary support after the machine is
delivered, dealers must supply the member's name, address, and member number. There is no additional burden or cost to our dealers to use the Sourcewell contract and this is part of the reason for their high engagement and our high reporting accuracy.
3) At month end, we gather the new machine and work tool sales data attributed to Sourcewell and aggregate it for our reporting.
4) After quarter end, we will send the quarterly sales report and administration fee payment to Sourcewell for all items that are subject to the administrative fee.
*
67 If you are awarded a contract, provide a few examples of internal metrics that will be tracked to measure whether you are having success with the contract.

We regularly track the % of sales that are sold using a cooperative contract. We will continue this practice if we are awarded a contract for RFP 011723.
*
68 Identify a proposed administrative fee that you will pay to Sourcewell for facilitating, managing, and promoting the Sourcewell Contract in the event that you are awarded a Contract.  This fee is typically calculated as a percentage of Vendor’s sales under the Contract or as a per-unit fee; it is not a line-item addition to the Member’s cost of goods. (See the RFP and template Contract for additional details.)
Per amendment #1 to Contract #032119-CAT, we will be
pleased to offer an administrative fee of 0.33% of
Caterpillar's list price for each piece of new equipment and serialized work
tools purchased by Sourcewell's Participating Entities.

Caterpillar will pay this fee and will not ask dealers or members to pay the fee.
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 266 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Table 14A: Depth and Breadth of Offered Equipment Products and Services Line
Item Question Response *
69 Provide a detailed description of the
equipment, products, and services that you
are offering in your proposal.

The Cat equipment product line, consisting of more than 300 machines, sets the standard for our industry. We plan to help you meet your needs with our equipment, with our distribution and product support system, and the continual introduction and updating of products.

Caterpillar is pleased to offer a wide variety of products for Sourcewell members.

Excluding paving products, equipment and services awarded on 060122-CAT these include:
- Cat Backhoe Loaders (9 models offered)
- Cat Compact Track Loader/Skid Steer Loader (14 models offered) - Cat Track/Wheel Hydraulic Excavators (41 models offered) - Cat Motor Graders (7 models offered)
- Cat Telehandlers (8 models offered)
- Cat Track Loaders (3 models offered)
- Cat Track/Wheel Dozers (15 models offered)
- Cat Wheel Loaders (19 models offered)
- Cat Wheel Tractor Scrapers (7 models offered)
- Cat Articulated Trucks (5 models offered)
- Cat Rigid Frame Trucks (2 models offered)
- Cat Material Handlers (3 models offered)
- Cat Landfill Compactors (3 models offered)
- Product offerings by model and discount can be found in the pricing attachment within the applicable proposal pricing section.

Services and support include:
- Cat Attachments (Worktools)
- Cat Technology
- Cat Safety Services
- Cat Job Site Solutions
- Product offerings by model and discount can be found in the pricing attachment within the applicable proposal pricing section.
- Services and support brochures can be found in the additional documents section by name of offering.

For more detailed information on each of these products/offerings see the following website: https://www.cat.com/en_US.html
*
70 Within this RFP category there may be
subcategories of solutions. List subcategory
titles that best describe your products and
services.

N/A
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 267 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
Table 148: Depth and 8readth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.

Line Item Categor\ or T\pe Offered Comments
71 Wheeled, tracked, and backhoe loaders Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
7 Motor Graders Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
73 Wheeled and tracked excavators Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
74 Bulldozers, compactors, scapers, articulated and
rigid haulers
Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
75 Cranes Yes
No
NIA
76 Accessories or attachments for the offering in #71-
75 above
Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
77 Technology or services for the offering in #71-75
above
Yes
No
Manufactured or offered by Caterpillar.

Offerings listed in applicable pricing
attachment section.

Table 14C: Required Offering of Equipment
Indicate below if the proposer's proposal includes at least one (1) of the following listed types or classes of equipment. Provide additional comments in the text box provided, as necessary.

Line Item Categor\ or T\pe Offered Comments
78 Wheel loader with published net horsepower (HP)
of at least 300 HP
Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
79 Wheeled or tracked excavator with a published net
horsepower (HP) of at least 150 HP
Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
80 Motor Grader with a published maximum operating
weight of at least 30,000 lbs.

Yes
No
Manufactured by Caterpillar. Offerings
listed in applicable pricing attachment
section.
81 Rough terrain, all terrain, crawler, floating, lattice, or telescopic crane with a published maximum lifting
capacity of at least 300 tons and a published
maximum boom length of at least 150 feet
Yes
No
NIA
Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text.

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 268 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
Documents
Ensure your submission document(s) conforms to the following:

1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.

2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.

3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.

4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - Machine Pricing.zip - Tuesday January 17, 2023 15:29:45 Financial Strength and Stability - Fin Strength and Stability.zip - Tuesday January 17, 2023 10:31:16 Marketing PlanISamples - Marketing Plan.pdf - Tuesday January 17, 2023 14:53:49 WMBEIMBEISBE or Related Certificates (optional)
Warranty Information - Warranty Combined.pdf - Monday January 16, 2023 10:36:31 Standard Transaction Document Samples (optional)
Upload Additional Document - Additional Documents.zip - Tuesday January 17, 2023 16:05:29 DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 269 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Addenda, Terms and Conditions

PROPOSER AFFIDAVIT AND ASSURANCE OF COMPLIANCE
I certify that I am the authorized representative of the Proposer submitting the foregoing Proposal with the legal authority to bind the Proposer to this Affidavit and Assurance of Compliance:

1. The Proposer is submitting this Proposal under its full and complete legal name, and the Proposer legally exists in good standing in the jurisdiction of its residence.

2. The Proposer warrants that the information provided in this Proposal is true, correct, and reliable for purposes of evaluation for contract award.

3. The Proposer, including any person assisting with the creation of this Proposal, has arrived at this Proposal independently and the Proposal has been created without colluding with any other person, company, or parties that have or will submit a proposal under this solicitation; and the Proposal has in all respects been created fairly without any fraud or dishonesty. The Proposer has not directly or indirectly entered into any agreement or arrangement with any person or business in an effort to influence any part of this solicitation or operations of a resulting contract; and the Proposer has not taken any action in restraint of free trade or competitiveness in connection with this solicitation. Additionally, if Proposer has worked with a consultant on the Proposal, the consultant (an individual or a company) has not assisted any other entity that has submitted or will submit a proposal for this solicitation.

4. To the best of its knowledge and belief, and except as otherwise disclosed in the Proposal, there are no relevant facts or circumstances which could give rise to an organizational conflict of interest. An organizational conflict of interest exists when a vendor has an unfair competitive advantage or the vendor’s objectivity in performing the contract is, or might be, impaired.

5. The contents of the Proposal have not been communicated by the Proposer or its employees or agents to any person not an employee or legally authorized agent of the Proposer and will not be communicated to any such persons prior to Due Date of this solicitation.

6. If awarded a contract, the Proposer will provide to Sourcewell Participating Entities the equipment, products, and services in accordance with the terms, conditions, and scope of a resulting contract.

7. The Proposer possesses, or will possess before delivering any equipment, products, or services, all applicable licenses or certifications necessary to deliver such equipment, products, or services under any resulting contract.

8. The Proposer agrees to deliver equipment, products, and services through valid contracts, purchase orders, or means that are acceptable to Sourcewell Members. Unless otherwise agreed to, the Proposer must provide only new and first-quality products and related services to Sourcewell Members under an awarded Contract.

9. The Proposer will comply with all applicable provisions of federal, state, and local laws, regulations, rules, and orders.

10. The Proposer understands that Sourcewell will reject RFP proposals that are marked "confidential" (or "nonpublic," etc.), either substantially or in their entirety. Under Minnesota Statutes Section 13.591, subdivision 4, all proposals are considered nonpublic data until the evaluation is complete and a Contract is awarded. At that point, proposals become public data. Minnesota Statutes Section 13.37 permits only certain narrowly defined data to be considered a "trade secret," and thus nonpublic data under Minnesota's Data Practices Act.

11. Proposer its employees, agents, and subcontractors are not:

1. Included on the “Specially Designated Nationals and Blocked Persons” list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury found at: https://www.treasury.gov/ofac/downloads/sdnlist.pdf;

2. Included on the government-wide exclusions lists in the United States System for Award Management found at:
https://sam.gov/SAM/; or

3. Presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 270 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this solicitation.

By checking this box I acknowledge that I am bound by the terms of the Proposer’s Affidavit, have the legal authority to submit this Proposal on behalf of the Proposer, and that this electronic acknowledgment has the same legal effect, validity, and enforceability as if I had hand signed the Proposal. This signature will not be denied such legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation. - Sean Egel, Sales Support Consultant, Caterpillar Inc.

The Proposer declares that there is an actual or potential Conflict of Interest relating to the preparation of its submission, and/or the Proposer foresees an actual or potential Conflict of Interest in performing the contractual obligations contemplated in the bid.

Yes No
The Bidder acknowledges and agrees that the addendum/addenda below form part of the Bid Document.

Check the box in the column "I have reviewed this addendum" below to acknowledge each of the addenda.

File Name
I have reviewed the
below addendum and
attachments (if
applicable)
Pages
Addendum_5_Heavy_Construction_Equipment_RFP_011723
Tue January 10 2023 08:47 AM
1 Addendum_4_Heavy_Construction_Equipment_RFP_011723
Fri January 6 2023 09:51 AM
2 Addendum_3_Heavy_Construction_Equipment_RFP_011723
Thu December 29 2022 12:33 PM
2 Addendum_2_Heavy_Construction_Equipment_RFP_011723
Wed December 21 2022 01:49 PM
1 Addendum_1_Heavy_Construction_Equipment_RFP 011723
Thu December 15 2022 09:27 AM
1 Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 271 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) TM-20-01077

SOURCEWELL TRADEMARK LICENSE ADDENDUM
This Addendum is by and between SOURCEWELL, 202 – 12th Street NE, PO Box 219, Staples, Minnesota 56479 (“Sourcewell”) and Caterpillar Inc., having its principal place of business at 5212 N. O’Connor Blvd., Suite 1100, Irving, TX 75039, and offices at 100 NE Adams Street, Peoria, Illinois, 61629 (“Caterpillar” or “Vendor”). Sourcewell and Caterpillar may be referred to in this Agreement as a “Party” and collectively as the “Parties.”
The Parties maintain a contractual relationship for Vendor to provide equipment, products, or services to Sourcewell’s cooperative purchasing contracts as follows:

Sourcewell Contract 011723 – CAT (Solicitation Number: 011723) Sourcewell and Vendor each own all right, title, and interest in their respective names, trademarks, service marks, related logos, and all other rights in the names, designs, likenesses and visual representations thereof (“Licensed Trademarks”), and desire to grant each other a royalty-free license to use certain Licensed Trademarks owned by the other Party under the terms and conditions set forth herein.

ARTICLE I: GRANT OF LICENSE
A. GRANT OF LICENSE. During the term of the Contract:

1. Sourcewell grants to Vendor a royalty-free, worldwide, non-exclusive right and license to use Sourcewell’s Licensed Trademarks provided to Vendor by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Vendor.

2. Vendor grants to Sourcewell a royalty-free, worldwide (except for those jurisdictions that are prohibited by applicable Anti-Corruption and International Trade Laws), non-exclusive right and license to use Vendor’s Licensed Trademarks provided to Sourcewell by Vendor in advertising and promotional materials for the purpose of marketing Vendor’s relationship with Sourcewell. “Anti-Corruption and International Trade Laws” means all statutes, regulations, rules, executive orders, supervisory requirements, directives, ordinances, circulars, opinions, interpretive letters, and official releases of or by any government, or any authority, department or agency thereof or selfregulatory organization related to bribery, fraud, corruption, or international trade.

3. The Parties agree that each is the owner of all rights, including without limitation common law rights and goodwill, in relation to their respective Licensed Trademarks, and that any goodwill derived from the use of Licensed Trademarks by the other Party shall inure to the owner of the respective Licensed Trademarks.

B. LIMITED RIGHT OF SUBLICENSE. The rights and licenses granted herein includes a limited right of each Party to grant sublicenses to its and their respective distributors, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Contract. Any sublicense granted will be subject to the terms and conditions of this Addendum. Each Party will be responsible for any breach of this Article by any of their respective sublicensees.

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 272 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) TM-20-01077
C. USE; QUALITY CONTROL.

1. Neither Party may alter the other Party’s Licensed Trademarks from the form provided by the other Party and must comply with the other Party’s removal requests as to specific uses of its Licensed Trademarks.

2. Each Party agrees to use, and to cause its Permitted Sublicensees to use, the other Party’s Licensed Trademarks only in good faith and in a dignified manner consistent with such Party’s use of the Licensed Trademarks. Upon written notice to the breaching Party, the breaching Party or their Permitted Sublicensees have thirty (30) days of the date of the written notice to cure the breach or the license will be terminated.

3. Beyond what is permitted in this Addendum, neither Party will:
a. attempt to register, or register any trademark, service mark, symbol, logo, get-up or device which is confusingly similar to any of the other Party’s Licensed Trademarks in any jurisdiction;
b. represent that it has any rights of any nature in the Licensed Trademarks other than those enjoyed under the terms of this Agreement;
c. use the other Party’s trademarks, service marks or copyrights, translations thereof or marks similar thereto, as part of its corporate name, trade name or a d/b/a name, favicons, social media names/handles, email addresses, email extensions, or domain names without prior written approval from the other Party; or d. use the other Party’s trade names, trademarks, or service marks on any collateral business materials (e.g., business cards, letterhead, invoices, pens, notepads, fax cover sheets, etc.), unless otherwise approved in writing by the other Party.

ARTICLE II: TERM, TERMINATION, AND MISCELLANEOUS.

A. EFFECTIVE DATE. This Addendum is effective upon the date of the final signature below.

B. TERMINATION. Unless earlier terminated in accordance with this Article, this Addendum expires immediately upon the expiration or termination of the Contract.

1. Termination for Convenience. This Addendum may be terminated by either Party at any time upon ninety (90) days’ prior written notice to the other Party.

2. Termination for Breach. This Addendum may be terminated by either Party upon a breach of the terms of this Addendum by the other Party, upon written notice of breach to the breaching Party, and only if such breach is not cured within thirty (30) days of the date of the written notice.

3. Effect of Termination. Upon the termination of this Addendum for any reason, each Party will have thirty (30) days to, and require its Permitted Sublicensees to, remove all Licensed Trademarks from signage, websites, and the like bearing the other Party’s name or logo DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 273 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) TM-20-01077
(excepting Sourcewell’s pre-printed catalog of vendors which may be used until the next printing). Vendor must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.

4. Miscellaneous. The terms and conditions of this Addendum shall have no effect on the terms and conditions of any other trademark licenses signed by the Parties.

All other terms of the Contract remain in full force and effect, unless otherwise terminated.

SOURCEWELL
By: _________________
Name:

Title:

Date:

Caterpillar Inc.

By: _________________
Name:

Title:

Date:

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 5/24/2023 | 2:45 PM CDT
Director of Operations and Procurement/CPO
Jeremy Schwartz Patrick Kearns
5/24/2023 | 12:48 PM PDT
Vice President Sales & Marketing - North America
Packet Pg. 274 Attachment: Caterpillar Contract 011723 (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) 2024 Sourcewell Caterpillar Cooperative Contract Discounts by Model Machine Model* New
Equipment
2024 Discount to Customer
(Off List Price)
Track Type Tractors Note
D1 23.00%
D1 Fire Dozer 23.00%
D2 23.00%
D2 Fire Dozer 23.00%
D3 23.00%
D3 Fire Dozer 23.00%
D4 23.00%
D5 23.00%
D5 Fire Dozer 23.00%
D6 23.00%
D7 19.00%
D8 19.00%
D9 One Time Only
D10 One Time Only
Wheeled Excavators
M314 26.00%
M315 26.00%
M316 26.00%
M317 26.00%
M318 26.00%
M320 26.00%
M322 26.00%
Material Handlers
MH3022 26.00%
MH3024 26.00%
MH3026 26.00%
MH3040 26.00%
MH3050 26.00%
MH3250 26.00%
MH3260 26.00%
Telehandlers
TH255 23.00%
TH408 24.00%
TL642 24.00%
TL943 24.00%
TL1055 24.00%
TL1255 24.00%
Motor Graders
120 34.00%
120GC 34.00%
140 30.00%
140GC 30.00%
150 30.00%
160 30.00%
14 19.00%
Skid Steer Loaders
226 21.00%
232 21.00%
236 21.00%
242 21.00%
246 21.00%
262 21.00%
272 21.00%
Compact Track Loaders
239 21.00%
249 21.00%
255 21.00%
259 21.00%
265 21.00%
279 21.00%
289 21.00%
299 21.00%
299XE Land Management 21.00%
Excavators
300.9 20.00%
301.5 20.00%
301.7 20.00%
301.8 20.00%
301.9 20.00%
302 20.00%
302.7 20.00%
303 20.00%
303.5 20.00%
304 20.00%
305 20.00%
306 20.00%
307.5 20.00%
308 20.00%
309 20.00%
310 20.00%
313 15.00%
313GC 16.00%
315 19.00%
315GC 20.00%
317 19.00%
317GC 20.00%
320 15.00%
320GC 16.00%
323 15.00%
325 15.00%
326 15.00%
330 15.00%
330GC 16.00%
335 15.00%
336 15.00%
340 16.00%
350 10.00%
352 10.00%
374 10.00%
395 10.00%
Non-Attached CAT OEM Work Tools are attachments sold on a standalone order without a machine purchase Parts and Service is offered by the servicing dealer at local rates Base machines must be properly configured with other mandatory and optional items from the price list before they are considered operational.

All new machines are subject to a commodity surcharge of up to 20% (In some cases, increased tire costs may cause this number to be greater) All new attachments (CAT work tools) are subject to a commodity surcharge of up to 25% Dealer costs (example: pre delivery inspection, assembly, freight to final location, etc.) are not subject to list discount Attachments (CAT work tools) purchased with new machine on same invoice are subject to same list discount as machine 1 of 2 #Caterpillar: Confidential Green Packet Pg. 275 Attachment: 011723-CAT Pricing (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Machine Model* New
Equipment
2024 Discount to Customer
(Off List Price)
Forest Machines
538 15.00%
548 15.00%
558 15.00%
568 15.00%
Backhoe Loaders
415 22.00%
416 22.00%
420 22.00%
428 Side Shift 22.00%
430 22.00%
432 Side Shift 22.00%
434 Side Shift 22.00%
440 22.00%
450 22.00%
Wheel Tractor Scrapers
621 18.00%
623 18.00%
627 18.00%
631 18.00%
637 18.00%
651 18.00%
657 18.00%
Articulated Trucks
725 17.00%
730 17.00%
735 17.00%
740GC 17.00%
745 17.00%
Rigid Frame Trucks
770 3.00%
773 3.00%
775 3.00%
Landfill Compactors
816 12.00%
826 12.00%
836 12.00%
Wheel Dozers and Soil Compactors
814 15.00%
815 13.00%
824 15.00%
825 13.00%
834 One Time Only
Wheel Loaders
903 23.00%
906 23.00%
907 23.00%
908 23.00%
910 23.00%
914 23.00%
920 24.00%
926 24.00%
930 24.00%
938 24.00%
950GC 20.00%
950 18.00%
962 18.00%
966GC 20.00%
966 15.00%
972 11.00%
980 11.00%
982 11.00%
988 11.00%
988GC 11.00%
Track Loaders
953 19.00%
963 22.00%
973 23.00%
Non-Attached CAT OEM Worktools 15.00%
Parts & Service N/A
Technology Solutions N/A
Caterpillar Safety Services 15.00%
Job Site Solutions N/A
2 of 2
#Caterpillar: Confidential Green Packet Pg. 276 Attachment: 011723-CAT Pricing (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Packet Pg. 277 Attachment: D8 Quote Revised (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Packet Pg. 278 Attachment: D8 Quote Revised (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer) Packet Pg. 279 Attachment: D8 Quote Revised (4.11(b)--Purchase One 2024 Caterpillar D8 Dozer)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept Bid Negotiation No. 5345 (Job No. 9618-83), Shastina Ranch Park Project awarded to SNL Group, Inc., as satisfactorily complete, with a final cost of $2,831,805.07.

Fiscal Impact
Community Development’s Park Development funding in the amount of $3,183,708.34 was approved for this Shastina Ranch Park Project (Project). The total project cost, including surveying, bidding, construction, field engineering, inspection, and contract administration is $2,831,805.07.

Alternative Action
The City Council (Council) may choose not to accept the project as satisfactorily complete and provide staff alternative direction.

Background
As of June 28, 2024, SNL Group, Inc. has completed all items of work on the Shastina Ranch Park Project which was within the adjusted contract time frame following weather delays and additional work. Subsequently, the Public Works Department filed a notice of completion with Shasta County. The project warranty period expires one year from the completion date.

On April 4, 2023, the Council awarded a construction contract to SNL Group Inc. for $2,460,708.34 for the Base Bid, an additional $62,000 for the Additive Alternate 3 (Landscape Maintenance-Base Bid) and approved a $246,000 construction contingency fund. Also authorized was $365,000 for contract administration and construction inspection fees. The City Manager was authorized to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000. The total authorized amount for MEETING DATE: November 5, 2024
ITEM NO. 4.11(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project Michael Webb, Public Works
Director
Packet Pg. 280
Report to Redding City Council October 28, 2024
Re: 4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project Page 2 the project was $3,183,708.34. During construction, there were twelve change orders in the amount of $73,046.65, leaving a balance of $172,953.35 in the contingency fund. The final project cost was $2,831,805.07.

Cost Summary
Awarded Amounts Actual Cost
Construction Contract +
Contingency $2,768,708.34
Construction Contract +
Contract Change Orders $2,595,754.99
Contract Administration &
Inspection $365,000.00 $236,050.08
Additional City Manager
Authority $50,000.00 $0.00
Total $3,183,708.34 $2,831,805.07
This project involved the construction of park facilities including storm drains, a sanitary sewer system, a domestic water system, electrical infrastructure, paving and hardscape, an irrigation system, landscaping, picnic and BBQ areas, restroom facilities, fencing, a hard court, play equipment, and other miscellaneous items of work.

Environmental Review
This action is not a project as defined by the California Environmental Quality Act. On July 5, 2005, the Council held a public hearing and adopted a resolution approving the Tentative Subdivision Map Application (S-7-03) and Planned Development Application (PD-5-04) for the Shastina Ranch Subdivision Project after adopting a resolution certifying the completeness and adequacy of the Environmental Impact Report EIR-1-03 on April 5, 2005. The Shastina Ranch Park was included in EIR-1-03, and no further action is required.

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

Attachments
^Shastina Ranch Park Location Map
Prevous Staff Report 040423
Packet Pg. 281
Packet Pg. 282 Attachment: ^Shastina Ranch Park Location Map (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Bid Schedule No. 5345 (Job No. 9618-83) Shastina Ranch Park:
(1) Award to SNL Group, Inc. in the amount of $2,460,708.34 for the Base Bid, and an additional $62,000 for the Additive Alternate 3 (Landscape Maintenance-Base Bid); (2) Approve an additional $365,000 to cover the cost of administration and inspection fees; (3) Approve $246,000 to provide construction contingency funding; and (4) Authorize the City Manager to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000.

Fiscal Impact
Funding for the Shastina Ranch Park (Project) comes from the Park Development Fund.

Cost Summary
Item Estimated
Construction Contract + 10% Contingency $2,768,708.34
Contract Administration, Inspection, Testing $365,000
Additional City Manager Authority $50,000
Total Project Costs $3,183,708.34
Project cost components are estimates and some shifting of the project development, construction management, and construction contingency funds may be necessary to balance the project within the approved budget.

MEETING DATE: April 4, 2023
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(a)--Award BS No. 5345 (Job Order No. 9618-83 ) Shastina Ranch Park Chuck Aukland, Public
Works Director

APPROVED
Packet Pg. 283 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to Redding City Council March 28, 2023
Re: 4.11(a)--Award BS No. 5345 Shastina Ranch Park Page 2 Alternative Action
The City Council (Council) may choose not to award the bid for the Shastina Ranch Park and provide staff with alternate direction. Without this project, the City of Redding (City) will be in conflict with the attached park development agreement.

Background/Analysis
In 2005, the City Council approved a development agreement with the Shastina Ranch Partners to construct the Shastina Ranch Subdivision, a large residential project west of Airport Road, south of Rancho Road, and adjacent to the proposed southerly extension of Shasta View Drive.

The Shastina Ranch project includes the development of 446 single-family residential units, a neighborhood park with a multipurpose playing field on approximately 11 acres, restroom and play equipment, and 25 acres within the Clover Creek floodplain with a Clover Creek trail to be located within the open space area.

The development agreement included a park development fee credit agreement, C-4327. The park development fee agreement was amended a few times over the years and most recently in 2021.

Attached is a tabulation of bids received and opened on March 16, 2023, for the Shastina Ranch Park Project. The low base bid in the amount of $2,460,708.34 was received from SNL Group, Inc., of Redding, California. Due to funding constraints, this project was bid with several additive alternatives. It was decided to also award Additive Alternative 3, which is a one-year maintenance contract for work completed within the base bid. SNL Group, Inc., provided a bid in the amount of $62,000 for Additive Alternative 3 for a total contract costs of $2,522,708.34.

The engineer's estimate, including Additive Alternative 3, was $2,385,000.

This project includes the construction of park facilities including storm drains, a sanitary sewer system, a domestic water system, electrical infrastructure, paving and hardscape, an irrigation system, landscaping, picnic and BBQ areas, restroom facilities, fencing, a hard court, play equipment, and other miscellaneous items of work.

Environmental Review
On July 5, 2005, the Council held a public hearing and adopted a resolution approving the Tentative Subdivision Map Application (S-7-03) and Planned Development Application (PD-5- 04) for the Shastina Ranch Subdivision Project after adopting a resolution certifying the completeness and adequacy of the Environmental Impact Report EIR-1-03 on April 5, 2005. The park project was included in the project scope.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”

APPROVED
Packet Pg. 284 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to Redding City Council March 28, 2023 Re: 4.11(a)--Award BS No. 5345 Shastina Ranch Park Page 3 Attachments
^Location Map
^Bid Tab C-4327_2021 Park Development Agreement
Previous Staff Report 070505
Previous Staff Report 040505

APPROVED
Packet Pg. 285 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 286 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 287 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park

APPROVED
Packet Pg. 288 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park

APPROVED
Packet Pg. 289 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park

APPROVED
Packet Pg. 290 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park

APPROVED
Packet Pg. 291 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park

APPROVED
Packet Pg. 292 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park

APPROVED
Packet Pg. 293 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park

APPROVED
Packet Pg. 294 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park

APPROVED
Packet Pg. 295 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 296 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 297 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 298 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 299 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 300 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 301 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 302 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 303 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 304 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 305 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 306 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

APPROVED
Packet Pg. 307 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) ITEM NO.
6 -]MEETING
DATE '7-5-
05 APPROVED
BY ~ C .Y MANA
ER
DATE:

CODE:

FROM:

SUBJECT: CITY OF

REDDING REPORT TO CITY
COUNCIL June 15,
2005S101-057/G030-010/L-010-211-012/
L-010-230 Development Services
Department-- Planning Public Hearing reShastina
Ranch Subdivision and Development Agreement;
Adopt Resolution for Tentative Subdivision Map
ApplicationS-7-03 and
Planned Development Application PD-5-04;
Adopt Resolution for General Plan Amendment Application GPA4-03; Offer Ordinance
for First Reading for Rezoning Application RZ-8-03; and Offer Ordinance for First Reading for Shastina Ranch Development Agreement RECOMMENDATION At the conclusion of the public heating, itis the recommendation ofthe Planning Commission that the City Council adopt thetwo attached resolutions and accept the twoattached
ordinances
for first reading by title only for approval of the applications constituting the Shastina Ranch Subdivision Project and development. agreement. BACKGROUND On February 8, 2005, the Planning Commission considered the Shastina Ranch Subdivision Project Project) andrecommended that the City Council determine that the necessary findings arein evidence and that the Council approve the applications constituting the Shastina Ranch Subdivision Project, and approve the associated Development Agreement between the City and the Project applicant. OnApril 15, the City Council adopted a resolution and findings for certification of EIR-1-03 and deferred action on the Project application pending a heating bythe Shasta County Airports Land UseCommission ( ALUC). This heating was necessary since theProject also necessitates an amendment to the Redding Airport Comprehensive Land Use Plan (CLUP)
to'ensure consistency between that plan andthe City' s General Plan. On May 26, 2005, the ALUC unanimously approved the CLUP amendment. PROJECTDESCRIPTION The Pro. ject proponents have requested approval ofa proposal tosubdivide approximately 224 acres to create 446 single-family residential homes; a7.6-acre public park;61 acresof open space; and 20 acres ofindustrial land. The open space will encompass the Clover Creek floodplain corridor, steep slopes along the west Project boundary, and areas of wetlands. The Project will also include the extension of Shasta View Drive between Rancho Road and Airport Road. The subdivision proposal requires an amendmentofthe Redding General Plan andrezoning
actions to achieve General Plan
consistency and establisharchitectural
and site-development guidelines.

APPROVED
Packet Pg. 308 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to City Council 2 June 15, 2005
A Development Agreement between the City of Redding and the Shastina Ranch Development Company, Inc.

Generally, the proposal is for a 446-1ot subdivision with lot sizes ranging between6,600 and14,000 square feet. The planned development plan describes fiveneighborhoods distinguished by lot and home size. Four neighborhoods are for model homes between1,200 and2,800 square feet insize; oneneighborhood is for custom homes. The Project is illustrated by the attached Shastina Ranch tentative subdivision map and planned development plan. Distinctive features include varying model home architecture, including two- story and side-entry garage models; six-foot landscape parkways with extensive tree planting along all streets; decorative paving and landscape at strategic street intersections to provide traffic calming; decorative streetlights and integrated design instreetscape, monumentation, and bridge features. DEVELOPMENT AGREEMENT The Project applications are accompanied bya development agreement between the applicant and the City. The main focus of theagreement isthe developer' sconstruction ofthe 7.6-acre public parkconcurrent with the Project development in exchange for park fee credit and use of City property for construction ofa section of Shasta View Drive. The agreement also provides that a landscape maintenance district will be formed for maintenance ofthe park; asmall portion of the park may be used for stormwater detention, and the developer will construct 1.3 miles of public trail along Clover Creek.

Attachment "B" provides further details onthe agreementpoints. Attachment "F" provides the implementing
development agreement ordinance. GENERAL PLAN AMENDMENT/ REZONING The Project necessitates a General Plan amendment tochange the land use classification of 101.5acres on that portion of the Project site on the east sideof Clover Creek from "General Industry" ( 82.6acres) and "Residential, 1to 2dwelling units per acre" ( 18.9 acres) to "Residential, 2 to 3.5units per acre." All of the Project area on the west side of CloverCreek iscurrently Residential, 2to3.5 units per acre." The proposed 446 lots represent a density of 2.6units peracre. Along the east Project boundary, 20.8 acres would remain classified " General Industry"; this area lies between an existing overhead 115 kV PG&E power line and industrial property adjacent to Airport Road. The Clover Creek floodplain andsteep slopes along the west Project boundary would remain in the "Greenway" classification. Attachments " K" and "L" illustrate the existing and proposed General Plan land use classifications on the property. The Project includes rezoning actions to coincide withthe General Plan amendment andto apply the PD" Planned Development Overlay District to the entire Project site. Essentially, this consists of rezoning the property on the east side ofClover Creek to "RS-3" Residential Single Family District. The "PD" District will serve to establish site andarchitectural guidelines as contained in the planned development plan. The "PD" District is also necessary to permit minor deviations to thelot width 70 feet) and lot area (7,000 square feet) of the "RS-3" District for about 200 of the lots on the east side of the creek. For the most part, these deviations are for width or area reductions of 10 percent ofless. The existing and proposed zoning of the
Project
site areillustrated on Attachments " M"and " N."ISSUES The underlying objective of the applicant isto create aplanned community offive neighborhoods distinguished by lot size and

APPROVED
Packet Pg. 309 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to City Council 3 June 15, 2005
to foster cohesiveness among the neighborhoods. The Planning Commission did not identify any major issues of conformance with the General Plan or standard development policies. The main Project issues were previously considered by the Council in conjunction with certification of the Project EIR. A discussion of these issues is presented in Attachment "A." They are:

Conformance with General Plan Goals.

Transportation and Circulation.

Eminent Domain for Shasta View Drive.

Consistency with Airport Land Use Plan.

Loss of Industrial Land.

Drainage/Anderson Cottonwood Irrigation District (
ACID).Public Park/Landscape
Maintenance District. TRAFFIC IMPROVEMENT/ FINANCING A primary consideration of the project isfinancing of improvements necessary tomitigate the project's traffic impacts at the intersection ofChmrt Creek Road/ Victor Avenue/ Rancho Road. This intersection is presently operating at a level of service on the verge of warranting signalization. The Project trafficstudy concludes that some an~ountofdevelopment may occur without significantly degrading the existing service level of the intersection,butthat before Project buildout, signalization will be necessary. Due to the close spacing of Victor Avenue and Rancho Road, reconstruction and signalization of
the intersection are major undertakings.The Project would contribute approximately 17 percent of the traffic atthe Chum Creek Road/ Victor Avenue/ Rancho Road. The potential deficiency oftheintersection is substantially caused by existing citywide traffic. The service levelof the intersection wouldbe potentially further degraded by anticipated development of other large parcels in theRancho Road/ Shasta View Drive area. The necessary improvement of the intersection is a
major construction project and beyond thefinancial scope of any individual residential development anticipated inthe area. To ensure that a funding mechanism will be inplace that will satisfy thefair-share or "proportionality" standard ofaproject requirement and provide some surety ofthe timely construction of the intersection improvements, the following condition is included in the recommended conditionsof project approval. Itis
based upon required mitigation identified in the Project EIR:38. a. The developer shall pay the Citywide Transportation Development Impact Fee inaccordance with Chapter 16.20 of the Redding Municipal Code.Prior to filing ofafinal map forresidential development orissuance of entitle: ment or building permit for development of the industrial land, the applicant, owner, or successor in interest shall agree toparticipate with theCityof Reddingna funding mechanism toensure the
construction ofimprovements at the Chum Creek Road/Victor Avenue/ Rancho Road intersections as :necessary to maintain acceptable level- of-service operations. The applicant, owner, or successor ininterest shall agreeto participate in this funding mechanism at a
level equivalent tothe project' spro rata share of the improvements. Co Notwithstanding ( b) above, up to a maximum of 120 lots may berecorded onthe east side of Clover Creek with sole access from Airport Road ( i.e., no crossing of Clover Creek) prior to final establishment ofa funding mechanism for the

APPROVED
Packet Pg. 310 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to City Council 4 June 15, 2005
facility fee, established by the City Council or its designee equal to the project's pro rata share of the intersection improvements, shall be made at the time of issuance ofa'building permit.

This condition requires that the project will contribute its fair share to finance the intersection improvements. The final funding mechanism will take the form of an assessment district, benefit fee district, reimbursement agreement, or some combination thereof. In essence, what will be created is a "localized" traffic impact fee program. Such a district(s) may also include the signal at Rancho Road/Alta Mesa
Drive. The City has already initiated acontact with atraffic consultant forpreliminary design work on thenecessary intersection improvements. Attachment 'T' provides amap illustrating large undeveloped parcels in the area of the Project site that may be included in a future assessment or benefit fee district based upon their development potential that wouldgenerate traffic at the intersection. At a
minimum, staff anticipates those largeundeveloped parcels south of Rancho Road and west of the Shasta View Drive extension in the vicinity of Shastina Ranch to be included. Other potential properties include undeveloped residential parcels and acommercial site north of Rancho Road, industrial land along Airport Road, and commercial parcels at the I-5/ South Bonnyview Road interchange. In accordance with State and City regulations, propertyowner notification and public heatings would be apart of any iprocess establishing abenefit fee or assessment district. In regard to Condition 38c, an analysis by the Project traffic consultant of allowing up to120 lots to develop east of CloverCreek with soleaccess offAirport Road (i.e., no extension of Shasta View Drive) concludes thatthis levelofdevelopment would have negligible impact on the operation ofthe Chum Creek Road/Victor Avenue/ Rancho Road intersection.

Development ofthese lots asthe initial phase ofthe project isprojected to increase the average peak- hour delay atthe intersection bya
maximum of 4.8
seconds. The Project EIR identifiesan additional
delay of less than 5.0seconds as below the threshold of significant impact. The sole Airport Road access results inadistribution of traffic more reliant upon Airport Road than the Rancho Road/ Chum Creek Road corridor. The traffic
consultant'sanalysis is provided in Attachment "J."The requirements of Condition 38 are consistent with General Plan policies in regard tofinancing necessary citywide traffic improvements, both in termsoftiming and fair-share allocation. General Plan policy acknowledges that temporary reductions in thedesired level-of-service goals will occur while financing is developed toconstruct traffic improvements of area or regional benefit. It is generally understood that with a
fee-based program, someimprovements will lag behind development, since fees are typically collected from development at the time ofissuance of building permits. During this lag time, thelevelsof
service may
decrease until enough funds
are accumulated to accomplish the improvement. REQUIRED FINDINGS ENVIRONMENTAL IMPACT REPORT EIR-1-03As noted, the Project EIR was previously certified by the City Council. The following findings are incorporated into the resolution for approval of the tentative map and planned development plan application and the ordinance for approval ofthe development agreement: 1. The project is within the scope ofthe Project defined in Final Environmental Impact Report

APPROVED
Packet Pg. 311 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to City Council 5 June 15, 2005
o
Changes or alterations have been required in or incorporated into the Project which avoid or substantially lessen the significant environmental effects identified in Final Environmental Impact Report EIR1-03.The City Council adopts the Mitigation Monitoring and Reporting Program included in Final Environmental Impact Report
EIR- 1-03.SHASTINA
RANCH SUBDIVISION PROJECT A General Plan amendment andrezoning are legislative acts and, therefore, specific findings for approval are not required other than the above environmental findings. Certain findings must be found to be in evidence to support approval of a tentative map as set forth inthe State Government Code, a Planned Development as set forthin Chapter 18.53 ofthe City Zoning Ordinance, and a Development Agreement as set forth in Chapter 18.20 of the City Zoning Ordinance. These findingsof approval are delineated in the resolutionand ordinance ofl~red for approval of theProject and development agreement and attached tothe report ( Attachments "
E"and "F"). ALTERNA TIVES AND IMPLtCATIONS OF THE
AL TERNA TIVES At the conclusion ofthe public hearing, the City Council has the following altematives:SHASTINA
RANCH SUBDIVISION PROJECT Determine that the Shastina Ranch Subdivision Project and Development Agreetnent as described in this report and the record is within the scope of the Project as defined inFinalEIR1-03. (Planning Commission Recommendation) Approve the Shastina Ranch Subdivision Project, consisting ofthe following elements, by adoption ofthenecessary resolutions and ordinances provided as Attachments " C," " D," "E,"
and "F." ( Planning Commission Recommendation)
Tentative Subdivision Map ApplicationS7-03.General
Plan Amendment Application GPA4-03.Rezoning Application RZ-8-03.Planned Development Plan PD-5-04.Shastina Ranch Development Agreement. The tentative map conditions of approval are provided as Attachment " G."o Approve inconcept the Shastina Ranch Subdivision Project with modifications tothe tentative map, planned development plan, orother element of the Project applications.

Staff would return with revised resolutions and/or ordinance necessary to support the modifications. Deny theShastina Ranch Subdivision Project based upon a determination that the tentative map, planned development plan, General Plan amendment, and rezoning are not consistent with the General Plan or that the Project would be detrimental to the health, safety, or welfare of the public. The Council should be specific inthe

APPROVED
Packet Pg. 312 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to City Council 6 June 15, 2005

CONCLUSION
It is the opinion of staffthat the Project demonstrates conformance with the City's General Plan and
Zoning Ordinance as outlined in this staff report and attachments. Further, it is staffs opi~fion that with the application of the attached conditions which incorporate the Project EIR mitigations, all necessary findings for approval can be made. While residential expansion within the vicinity of an airport is a land use planning concern, the Project would be in conformance with all applicable policies of the Airport Plan. The loss of a
larger industrial site is a concern, but will be offset by the pending creation ofthe Stillwater Business Park. When completed, the Shastina Ranch park and trail will assist the City in achieving the General Plan goal of 10 acres of improved park per 1,000 population. When the Planning Commission recommended the project to the Council, it unanimously praised the Shastina Ranch representatives and staff for working together to ensure that this area reflects the best of Redding--itscharacter, its quality, and its vision for the future. Staffrecommends that the City Council adopt the attached resolutions for approval of General Plan Amendment Application GPA-4-03, Tentative Subdivision Map Application S-7-03, and Planned Development Plan PD-5-04; and accept theattached ordinances for approval of Rezoning Application RZ-8-03and the Shastina Ranch Development Agreement
for first reading
by title only.ATTA
CHMENTS A. Issues Discussion
B. Main Development Agreement
Points C. Resolution approving GPA-4-
03 D. Ordinance approvingRZ8- 03E. Resolution approvingS7- 03 and PD-5-04 F. Ordinance approving Development Agreement G.

Tentative map conditions of approval H.

Policy 1703, Eminent Domain,
findings. I. Potential traffic
benefit district map
J. Traffic analysis
120 lots/Airport Road
K. Existing General Plan
L. Proposed General Plan
M. Existing zoningN.

Proposed zoningO. Existing
Airport CLUP P. Proposed Airport CLUP Q. Tentative map (4)R. Planned Development Plan S. EIR-1- 03 (previously forwarded)* A copy of Final Environmental Impact Report EIR- 1-03 for the Shastina Ranch Project was previously provided tothe Council for its meeting on April 5, 2005,at which timethe
Council certified
the EIR. Ifa Council Member would like
another copyof theEIR, please
contact the City Clerk.DD:

APPROVED
Packet Pg. 313 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) ITEM NO. 6 - 2 MEETING
DATE 4-5-
05 APPROVED
BY Michael
Warren
DATE:

CODE:

FROM:

SUBJECT: CITY OF

REDDING REPORT TO CITY
COUNCIL March 30,
2005 L-OlO-O75/S-lOlO57/
GlO/
O30-
L-O
O
lO230/L-010-211-012/
S-101- 057 Development Services Department--
Planning Public Hearing reAdoption
of Resolution Certifying EIR1-03, Shastina Ranch Subdivision Project for Tentative Subdivision Map
ApplicationS-7-
03;
General Plan Amendment Application GPA-4-03; Rezoning Application RZ-8-03;Planned Development Application PD-5-04, and Development Agreement, by Shastina Ranch Development Company Inc.

RECOMMENDATION On February 8, 2005, the Planning Commission considered the Shastina Ranch Subdivision project Project) and recommended that the City Council determine that thenecessary findings are in evidence andthat the Council certify Environmental Impact Report EIR1-03, evaluating the applications constituting the Shastina Ranch Subdivision project
and the associated Development Agreement between theCity and the Project applicant. This action requires adoption of the attached resolution and findings for certification of EIR-1-03.B/I CKGR 0 UND The public hearing for this item was continued from the March 15 Council meeting. Please refer to the March 15 City Council staff report fortheproject description, maps, and afull discussion of issues. The action to be considered by the Council at this meeting iscertification of the Final EIR.The entire scope of the project application is being presented inconjunction with the Final EIR, so thatthe Council hasacomprehensive view of the project. Approval of the project applications cannot occur until after the Shasta County Airports Land Use Commission ( ALUC)
review. ALUC will not review the project until the environmental document has been certified. After ALUC action is complete, staff will return tothe Council forfinal action onthe related approvals.

ISSUES Consideration
of
this item wascontinued from the March 15 meeting attherequest of the applicant. Since itwas an advertised hearing, the public hearing was opened, although no publiccomments were offered.TRAFFIC The Council requested development of alternative mitigation to

APPROVED
Packet Pg. 314 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to City Council 2 March 30, 2005
means ofthe project paying for its fair share ofthe necessary improvements to the intersections. The EIR and March 15 staff report acknowledge that this mitigation would require reprioritizing use of TIF funds in the City's Capital Improvement Program ( CIP) or possible amendment of the fee structure itself. The Council expressed a concern for approving an individual project that would require amending the TIF or CIP without taking a comprehensive look at the program as a whole.

The attached addendum to the Final EIR presents a background discussion leading to modification of Mitigation Measure MM 4.1, 11.addressing the Chum Creek Road/Victor Avenue/ Rancho Road intersections. The objective oftherefined mitigation isto ensure thatafunding mechanism will bein place that will satisfy the fair-share or "proportionality" standard required of a project mitigation or condition of approval and provide some suretyof the timely construction ofthe intersection improvements. The
proposed modification states: Prior to filing of a final map for residential development, or issuance of entitlement or building permit for development ofthe industrial land, the applicant, owner or successor ininterest, shall participate with the City of Redding ina funding mechanism to ensure the construction of improvements at the Chum Creek Road/ Victor Avenue/ Rancho Road intersections as necessary to maintain acceptable level-of-service operations. The applicant, owner, or successor in interest shall participate inthis funding mechanismat a
level equivalent to the project'spro
rata share of the improvements. Alternatively, the applicant, owner, or successor in interest shall pay at the time ofissuance ofabuilding permit aproject-specific facility fee establishedby the City Council equal to the project'
spro ratashare ofthe intersection improvements. This modified mitigation measure ensures that the project will contribute its fair share to finance the intersection improvements. The funding mechanism will take the form of an assessment district, benefit district, reimbursement agreement, or some combination thereof. In essence, whatwillbe created isa "localized" traffic impact mitigation program. This
mitigation is appropriate inview of the following: The refined mitigation addresses the fair- share consideration of the mitigation standard. The project as mitigated represents 17 percent of the traffic at theintersection. The potential deficiency of the intersection is substantially caused by existing citywide traffic. The Public FacilitiesPlan, contained in the Final EIR as Appendix 4.2, provides astarting point for establishing an area of benefit, which will spread the cost over
a larger area that will benefit from the improvement. The funding mechanism must be in place before creation of any lots, ensuring that the intersection improvements will be constructed. Once the funding mechanism is established, alimited amount of development can beallowed to occur prior to the actual intersection improvements, as longas the service levels at theintersections areacceptable to the Council and theimprovements are programmed into atimetable. It is anticipated that some level of project development with sole access from Airport Road would have little impact on the intersections. Staff will address this potential in the tentative map conditions when presented

APPROVED
Packet Pg. 315 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to City Council 3 . March 30, 2005
The direction of the mitigation is consistent with General Plan policy in regard to financing necessary citywide traffic improvements, both in terms of timing and fair-share allocation. General Plan policy acknowledges that temporary reductions in the desired level-of-service goals will occur while financing is developed toconstruct traffic improvements ofarea or regional benefit. Itis generally understood thatwith afeebased program, some improvements will lag behind development, since fees aretypically collected from development atthe time of issuance of building permits. During this lag time, the levels of service may decrease until enough funds are accumulated to do the improvement. The referenced General Plan policies are provided in the
attached Final EIR addendum. In conjunction with the ofrefinement MM 4.11.1, Condition 38 of the draft project conditions, included with the March 15 staff report, is also proposed to be modified as follows: 38. a. The developer shall pay the Citywide Transportation Development Impact Fee inaccordance with Chapter 16.20of the Redding Municipal Code. Prior to filing ofafinal map for residential development, or issuance of entitlement or building permit for development of theindustrial land, the applicant, owner or successor in interest, shall participate withthe City ofRedding in afunding mechanism to ensure the construction of improvements atthe Chum Creek Road/ Victor Avenue/ Rancho Road intersections as necessary to maintain acceptable level-of-service operations. The applicant, owner, or successor in interest shall participate in this fundingxnechanism at a level equivalent to the project's pro rata share ofthe improvements. Altematively, the applicant, owner, or successor ininterest shall pay atthe time ofissuance ofabuilding permitaproject-specific facility feeestablished by the City Council equal to the
project' s pro rata share of the intersection improvements. As noted above, this condition maybe further refined toestablish more specific development/ improvement thresholds when the tentative map is brought to the Council for approval.At the March 15 meeting, the Council also expressed concern about potential project impacts onthe Redding Municipal Airport and Anderson Cottonwood Irrigation District (
ACID) facilities in the vicinity of the project. In summary: REDDING MUNICIPAL AIRPORT The project hasbeen evaluated inthe context of the State- mandated Redding Municipal Airport Comprehensive Land Use Plan (CLUP). The main purpose of the CLUP is toanticipate expansion and useofthe Redding Airport and provide land useand safety policies forthe protection of residents andproperties inthe area surrounding the airport, while also protecting the long-term operational viability of the airport. These policies were established based on projected increases inflight operations and expansion of airport facilities. The levelof2004 flight operation was approximately 45 percent of total flights anticipated by the CLUP. The Final EIR andstaffs project analysis conclude that the project conforms toall applicable policies ofthe CLUP. The basis for this determination is provided at length in the EIR and in the March 15 Council staff report. The State Division of Aeronautics has reviewed the project and has not expressed any objection. Final approval ofthe

APPROVED
Packet Pg. 316 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to City Council 4 March 30, 2005
ACID FACILITIES A small portion of the Project (23.5 acres) is within the watershed of Chum Creek. Runoff from the Project site toward Chum Creek is intercepted by an ACID canal built along the west Project boundary in the early 1900s. The General Manager of the ACID has stated that drainage to this canal from development north of Rancho Road has damaged the canal structure and that ACID is opposed to any further development that will increase runoff to the canal. The EIR mitigations and subdivision map conditions preclude development of the 23.5 acres of Shastina Ranch within the Chum Creek watershed until an appropriate method of conveying water is approved by the City Engineer in consultation with the ACID. The EIR identifies two potential solutions. This restriction will affect 40 of the westemmost lots shown on the subdivision map.

REQUIRED FINDINGS
ENVIRONMENTAL IMPACT REPORT EIR1-03 The Final EIR has been completed in compliance with the California Environmental
Quality Act. The Final EIR was presented to the City Council, and the City Council has reviewed and considered the information contained in the Final E1R.3. The Final EIR reflectsthe City's
independent judgment
and analysis. These findings are incorporated into the attached resolution for certification of the EIR,
Attachment "A."ALTERNATIVES AND IMPLICATIONS OF THE AL
TERNA TIVES At the conclusion ofthepublic hearing, the City Council has the following altematives: ENVIRONMENTAL IMPACT
REPORT EIR-1-03 1. Certify EIR-1-03 for the Shastina Ranch Subdivision Project by adoption ofthe attached
resolution ( Attachment "A"). ( Planning Commission Recommendation)2. Determine that additional inibrmation or revision is necessary tocomplete the
Final EIR. SitASTINA RANCH SUBDIVISION PROJECT Refer the Shastina Ranch Subdivision Project to the Shasta County Airports Land Use Commission (ALUC) foradetermination of compatibility with the Redding Mtmicipal Airports Comprehensive Land Use Plan (CLUP). (Planning Commission Recommendation) Do not refer the Shastina Ranch Subdivision Project to the Shasta County Airports Land Use Commission (ALUC) foradetermination of compatibility with the Redding Municipal Airports Comprehensive Land Use Plan (CLUP). Require modifications tothe tentative map, planned development plan, orother element of the

APPROVED
Packet Pg. 317 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) Report to City Council 5 March 30, 2005

CONCLUSION
It is the opinion of staff that the findings for certification of the Shastina Ranch Environmental Impact Report EIR-1-03, are in evidence. It is further the opinion of staff that the project demonstrates conformance withthe City's General Plan and Zoning Ordinance as outlined inthis staff report and attachments. While residential expansion within the vicinity of an airport is aland use planning concern, the project would bein conformance withall applicable policies of the Airport Plan and should be forwarded to ALUC
for review. It isthe recommendation of staff and the Planning Commission that at the close of the public hearing, the City Council certify EIR-1-03 by adoption of the attached resolution. It is further recommended that the Council direct staff to prepare the necessary resolution and ordinances to effectuate approval of all elements ofthe Shastina Ranch Subdivision Project and Development Agreement after the heating by the Shasta County Airports LandUse Commission.4T

TA CHME NTS
A. Resolution certifying EIR-1-03 B.

Addendum to Shastina Ranch Final EIR C. March 15,
2005, Council
staffreport by reference
DD: jh STAF'~S703- GPA403- RZ803-PDS04-
ShastinaPD- DD-CC 1 .wpd c:

Jeb Allen, Shastina Ranch Development

APPROVED
Packet Pg. 318 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) RESOLUTION NO. 2005-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

CERTIFYING THE COMPLETENESS AND ADEQUACY
OF ENVIRONMENTAL IMPACT REPORT EIR1-03 FOR THE SHASTINA RANCH SUBDIVISION PROJECT WHEREAS, the City of Redding, as lead agency forthe Shastina Ranch Subdivision Project Project), has conducted thefollowing environmental review forthe proposed Project:1. ANotice of Preparation ofaDraft Environmental Impact Report (DEIR) was circulated for review and comment on March 23,
2004; and 2.' A Notice of Completion ofaDEIR was circulated for review and comment on August 26,
2004; and oApublic heating was conductedby the Planning Commission on the DEIR on September 28,2004. Notice ofthat hearing included aletter notice toallproperty owners between 600and 2,200 feet from theproject boundary and publication in the Record Searchlight; and After closure of the public comment period, all comments received were summarized and addressed in writing. Responses specific to local and State agencies were mailed directly tothose agencies on January 17,
2005; and 5. Written comments on the DEIR by State and local agencies and individuals and responses tocomments were included in theFinal Environmental Impact Report ( FEIR); and oApublic hearing was conducted bythe Planning Commission on the FE1R on February 8,2005. Notice ofthat hearing included a letter toall public agencies and persons that submitted comments on the DEIR and toallproperty owners between 600and 2,200feet fi:om the project boundary and publication in the Record
Searchlight; and The Planning Commission, atthe conclusion ofits February 8, 2005, heating, adopted Planning Commission Resolution No. 2005- 01, recommending that the City Council certify FEIR-1-03and adopt
the Mitigation Monitoring Program; and oApublic hearing was conducted bythe City Council on FEIR- 1- 03 on March 15, 2005. Notice of that hearing included aletter to allpublic agencies and persons that submitted comments ontheDEIR and to allproperty owners between 600 and 2,200 feetfrom the project boundary and
publication in the Record Searchlight; and o Before final action can be taken by the City Council on the Project, the Project must be submitted to the Shasta County Airport Land Use Commission foradetermination of consistencyand/oranamendment to the Redding
Municipal Airport Comprehensive Land Use Plan; and 10.The Shasta County Airport Land Use Commission may require a
certified environmental
document
in
order

APPROVED
Packet Pg. 319 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project) NOW, THEREFORE, BE IT RESOLVED that the City Council ofthe City of Redding, based upon the entire record of the environmental review for the Shastina Ranch Subdivision Project, makes the following findings:

1. The FEIR has been completed in conformance with the California Environmental Quality Act; and

2. The FEIR was presented to the City Council and the City Council has reviewed and considered the in'formation contained in the FEIR; and

3. The FEIR reflects the City's independent judgment and analysis.

BE IT FURTHER RESOLVED that the City Council of the City of Redding, based upon substantial evidence in the administrative record and FEIR-1-03, hereby certifies the attached FEIR-1-03 ascomplete and incompliance with the California Environmental Quality Act.PASSED AND ADOPTED bythe City Councilofthe City ofRedding ata regular meeting on this day of
by
the
following
vote:

AYES:NOES:

ABSENT: ABSTAIN:

COUNCIL MEMBERS:

COUNCIL MEMBERS:

COUNCIL
MEMBERS: COUNCIL MEMBERS: Attest:

JOHN R.

MATHENA,
Mayor Form Approved: -'CONNIE STROHMAYER, City Clerk RICHARD A.

DUVERNAY, City Attorney Revised:

March
14, 15- 2005 3-05 KESO\CC~

APPROVED
Packet Pg. 320 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

ADDENDUM TO

FINAL ENVIRONMENTAL IMPACT REPORT
FOR

SHASTINA RANCH
SCH No. 2004032126
Prepared for:

CITY OF REDDING
Development Services Department
P. O. Box 49607'1
Reddin9, CA 96049
Prepared by:

PACIFIC MUNICIPAL CONSULTANTS
508 Chestnut Street, Suite A
Mt. Shasta, CA 9606-]
Tel: 530.926-
4059 Fax: 530.
926-42-/9
MARCH
29,

APPROVED
Packet Pg. 321 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

FINAL ENVIRONMENTAL IMPACT REPORT, ADDENDUM

BACKGROUND
At the Council Meeting of March 15, 2005, the City Council requested additional information on alternative mitigation for improvements needed to address existing and future deficiencies at the intersections of Rancho Road/ Churn Creek Road/
Victor Avenue.

IMPACT THRESHOLDS The Shastina Ranch project environmental document evaluates the intersections affected by the project and establishes a threshold for environmental significance based onthe City's General Plan Level of Service "C." Projects that result in impacts that reduce the level of service below 'C" must mitigate their impacts. Unfortunately, there are some intersections in the City that already operate below this level of service. For these intersections, it was necessary to establish adifferent threshold of significance to determine when improvements tothe intersection( s)should
be required. On 4.pages 11.124.and 11. 13 of the Draft EIR, athreshold discussion establishes a 25 percent impact level above which physical improvements must be installed. Below the 25 percent level, payment ofthe City's Traffic Impact Fee (TIF) was tobe considered acceptable. The use ofthe City's Traffic Impact Fee program was considered acceptable mitigation because it reflects
a
aregional responsibility for some transportation improvements and establishes funding mechanism for their installation. Payment of the TIF also ensures that one project does not have to bear the burden of large regionally
serving improvements. The proposed project has both a residential and an industrial component.

The residential component represents 446 single- family homes, the layout of which is shown on the tentative map. The industrial component is a remnant of the existingzoning and C-,eneral Plan designation, and no development is currently planned. Traffic assigned to the industrial component was based only on the possible land coverage as estimated from an average of trips per acre found in the Institute of Traffic Engineers ( ITE) manual. In essence, the EIR speculates on the potentialfor future industrial development in the absence of any proposal. Full buildout of the proposed project results in a calculated impact of approximately 27 percent at the Rancho Road/ Churn Creek Road/ Victor Avenue intersections. As noted above, this exceeds the threshold and would require improvements as stated in the DEIR. CEQA also provides for alternatives to a project that would reduce impacts. Since the-industrial component of the project was speculative and the associated traffic a mathematical estimate based on this speculation, the City proposed and the applicant agreed todelay the development ofthe industrial area until a funding solution was in place to install irnprovements at intersections. ( the See Mitigation Measure 4.11. 11 This mitigation measure effectively reduces to 17 percent the impact of project traffic at these intersections. Reducing the size or scope ofaproject to reduce the resulting environmental impact is an appropriate and
often- used method
during the
CEQA process.City
of Redding March 2005 ShastJna

APPROVED
Packet Pg. 322 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

FINAL ENVIRONMENTAL IMPACT REPORT, ,ADDENDUM
The Draft EIR concluded that since the industrial component of the project ' triggered the threshold for requiring that the project construct physical improvements to the intersection, the funding mechanism and design of the improvements could wait until an industrial use was proposed. Further, having the residential uses paying the Traffic Impact Fee would ensure that this portion of the development would also pay its proportionate share of the cost of intersection improvements. The EIR shows that the level of service at the intersections would continue to decline, while funds were collected to result in physical improvements.

GENERAL PLAN POLICY
The General Plan has a policy acknowledges that temporary reductions in the sought- after level of service will occur while financing is developed to fund, design, and install traffic improvements of area orregionwide benefit. It is generally understood that with a fee-based infrastructure program, some improvements will lag behind others, since fees are typically collected from development at building- permit issuance. During this " lag time," the level of service may decrease. This is recognized in the City' s General Plan by
the following
General Plan Policies: T1B - Require development projects to construct both on- and offsite improvements as necessary to mitigate the effects of increased traffic generated by the project and maintain peak-hour LOS standards established by Policy T1A. The traffic analysis used to establish mitigating measures shall bebased on the City' s Traffic Model or other City- approved method. Improvements may be deferred by the City upon approval of a Deferred Improvement Plan which identifies improvements needed, costs, funding sources, and other pertinent data required by the City. [ emphasis added] T3E - Pursue financing ina timely manner for all components of the transportation system toachieve and maintain
adopted level- of-service standards. T3F - Assess fees on new development sufficient to cover the fair shareportion ofthat development' s impacts on thelocal and regional transportation system. Exceptions may be when new development generatessignificant public benefits (e.g., Iow- income housing, primary- wage- earner employment), and alternative sources offunding for the improvements
can be
obtained to offset foregone revenues. FUNDING MEASURES At the Council Meeting of March 15, 2005, the City Council raised concerns regarding using the TIF program toadd these improvements without a comprehensive review of the entire program. As an alternative, there are other tools which can be used to provide funding for the
intersection improvements. Generally, they include the following: Assessment District. The creation of an assessment district would establish an area of benefit that directly affects the intersection( s) and requires all owners of undeveloped property within the area to participate in the funding of the improvements. Participation can be in the form of assessments placed on the land and paid over time or, alternately, through construction ofthe improvement and reimbursement of the improvement cost over time as other properties in the area develop. Assessment District financing can fund improvements " up front" ifthe property
values are adequate
tosupport
thedebt.City
ofRedding March 2005 Shastina

APPROVED
Packet Pg. 323 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

FINAL ENVIRONMENTAL IMPACT REPORT, ADDENDUM
II. Benefit Fee Assessment. This approach is similar to the Assessment District, except that it typically relies on fees only to reimburse either the City or a developer for the improvements installed. The improvements are constructed at the time adequate fees have been collected to fund them.

Since the Council prefers not to add these intersection improvements to the TIF, but wants to ensure that all projects affecting this intersection pay their proportionate share of improvement costs, staff is recommending that Mitigation Measure 4.111. in the Final EIR be modified as set forth on the attached additional page to the FEIR Errata. The focus of these refinements is to ensure that a formal funding mechanism is in place prior to issuance of final development entitlements.

CEQA AUTHORITY FOR MODIFICATIONS
These modifications to a proposed mitigation measure are considered a refinement of the existing mitigation measures to more clearly state the intent of the City to ensure adequate funding and timing for improvements at the Rancho Road/ Churn Creek Road/ Victor Avenue intersections. Refinements to mitigation measures are an integral part of the environmental process and essential toensuring that. the EIR reflects the intent of the lead agency.

Since the Council is only refining the approach to impacts already identified in the EIR, no recirculation of the EIR is necessary or warranted. ( 15088. Section 5[4] of the CEQA Guidelines). City
of Redding
March 2005 Shastina
Ranch Subdivision Final Environmental Impact
Report,

APPROVED
Packet Pg. 324 Attachment: Prevous Staff Report 040423 (4.11(c)--Accept Bid Negotiation No. 5345 Shastina Ranch Park Project)

ERRATA, ADDENDUM

4.11 TRANSPORTATION