Redding City Council
March 4, 2025

Attachment I: Project Summaries for Organics Grant Program Fiscal Year 2021-22 and 2022-23
Attachment I
Organics Grant Program, Fiscal Year 2021–22
and 2022–23 Project Summaries
The projects with proposed grant awards are briefly summarized below. Note that in some instances, CalRecycle modified GHG emission reductions and tons diverted estimates contained within the application documents due to factors such as ineligible feedstock and tonnages reported outside of the grant term.

Standalone Pre-Processing
• Applicant: Humboldt Waste Management Authority
• County: Humboldt
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $2,710,081
• Estimated GHGs (MTCO2e) over ten years: 47,298
• Estimated Diversion (Tons) over ten years: 237,823
Humboldt Waste Management Authority proposes a Stand-Alone Pre-Processing project to convert an existing 19,000-square-foot building at the Hawthorne Street Transfer Station located in Eureka, CA into an Organics Waste Processing Operation. The renovated facility will be used to receive, sort and process new residential co-collected and commercial source-separated food and green material currently disposed of at the Dry Creek Landfill. Commercial food material will be cleaned and processed into an organic slurry that will be transported to a composting facility. The project will result in 237,823 tons of newly diverted food and green material from landfill and a reduction of 47,298 MTCO2e of greenhouse gas emissions over ten years. In addition, the project will provide an estimated five full-time jobs targeted for priority populations and supports Humboldt County’s edible food recovery program.
• Applicant: Kochergen Farms Composting, Inc. dba Green Valley Recycling • County: Fresno
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $3,000,000
• Estimated GHGs (MTCO2e) over ten years: 99,447
• Estimated Diversion (Tons) over ten years: 461,137
Kochergen Farms Composting, Inc. (KFC), DBA Green Valley Recycling (GVR) proposes a StandAlone Pre-Processing project to install a food waste depackaging system, at the Green Valley Recycling Transfer and Processing Facility. Source separated food and green material (SSO) will be cleaned and processed into an organic slurry that will be transferred to KFC for composting. The SSO and residential food material is currently disposed of at the American Avenue Landfill in Fresno County, CA, located in a low-income community. The project will result in 461,137 tons of newly diverted food and green material from landfill and a reduction of 90,447 MTCO2e of greenhouse gas emissions over ten years. In addition, the project will provide up to 15 jobs targeted for priority populations.

APPROVED
Packet Pg. 154 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

Attachment I: Project Summaries for Organics Grant Program Fiscal Year 2021-22 and 2022-23
• Applicant: Republic Services of Sonoma County, Inc.
• County: Sonoma
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $2,461,423
• Estimated GHGs (MTCO2e) over ten years: 163,020
• Estimated Diversion (Tons) over ten years: 452,833
Republic Services of Sonoma County, Inc. proposes a Stand-Alone Pre-Processing project at their Sonoma County Central Transfer/Processing Facility in Petaluma, CA. This project will install a depackaging system to remove contamination from source-separated commercial food material currently disposed of at the Republic Services of Sonoma County, Inc. Central Disposal Site. Food and green material will be sent to Republic Services of Sonoma County’s composting facility in Richmond. The project will result in 452,833 tons of newly diverted food and green material from a landfill located in a low-income community and a reduction of 163,020 MTCO2e of greenhouse gas emissions over ten years. In addition, the project will provide an estimated two full-time permanent jobs targeted for priority populations.
• Applicant: Sacramento County
• County: Sacramento
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $3,000,000
• Estimated GHGs (MTCO2e) over ten years: 94,357
• Estimated Diversion (Tons) over ten years: 452,760
Sacramento County Department of Waste Management and Recycling proposes a Stand-Alone PreProcessing project to construct a dedicated building at its North Area Recovery Station for the preprocessing of food and green material currently disposed of at Kiefer Landfill. Commingled food and green material generated from residential curbside collection will be delivered to the new facility and pre-processed to remove contaminants. Once food and green material are pre-processed into one of four top load-out ports within the new transfer building, it is transferred to a permitted composting facility. The project will result in 452,760 tons of newly diverted food and green material from landfill and a reduction of 94,357 MTCO2e of greenhouse gas emissions over ten years. The project will provide job training to members of priority populations that will lead to industry recognized licenses/certifications.

Anaerobic Digestion/Co-Digestion
• Applicant: California Grinding, Inc.
• County: Fresno
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $6,625,956
• Estimated GHGs (MTCO2e) over ten years: 150,000
• Estimated Diversion (Tons) over ten years: 390,000
California Grinding Inc (CGI) proposes to build an anaerobic digestion facility that will include installation of pre-processing equipment, anaerobic digesters, a biogas upgrading system, and a predigestion system. The food and green material are currently landfilled at American Avenue Disposal Site, Visalia Disposal Site, and Woodville Landfill. The project will result in 390,000 tons of newly diverted food and green material from landfills located in disadvantaged and low-income communities

APPROVED
Packet Pg. 155 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

Attachment I: Project Summaries for Organics Grant Program Fiscal Year 2021-22 and 2022-23
and a reduction of 150,000 MTCO2e over ten years. The facility will produce renewable natural gas that will be injected into the adjacent PG&E pipeline and provide an estimated 26 permanent jobs targeting priority populations.
• Applicant: City of Napa
• County: Napa
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $10,000,000
• Estimated GHGs (MTCO2e) over ten years: 120,000
• Estimated Diversion (Tons) over ten years: 300,000
The City of Napa proposes to add an anaerobic digestion operation at its material diversion facility.

The project will include installation of food waste pre-processing and polishing equipment, an anaerobic digester, and a biogas upgrading system. The biogas will be used to produce compressed natural gas for on-site fueling of City trucks and Napa Recycling and Waste Services solid waste collection vehicles and renewable electricity to power facility operations. The digestate will typically be composted on-site in the covered aerated static pile unit or sent to another composting facility, if needed, but can also be dried and sold as fertilizer. The food and green material are currently landfilled at Vasco Road, Potrero Hills, Ox Mountain, and Clover Flat Landfills. The project will result in 300,000 tons of newly diverted food and green material from landfill and a reduction of 120,000 MTCO2e of greenhouse gas emissions over ten years. The project will provide five permanent, fulltime jobs targeting priority populations. • Applicant: City of Riverside
• County: Riverside
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $10,000,000
• Estimated GHGs (MTCO2e) over ten years: 81,000
• Estimated Diversion (Tons) over ten years: 200,000
The City of Riverside proposes the installation of food waste receiving, pre-processing, polishing, and storage infrastructure, as part of the Riverside Water Quality Control Plant co-digestion project. The project will significantly expand the facility’s food waste receiving and anaerobic co-digestion capacity. Food waste cake will be received via dump trucks, polished to a slurry to remove plastic and grit contaminants, and then co-digested with wastewater sludge. The biogas produced will be upgraded to renewable natural gas and injected into the SoCalGas utility pipeline. The commingled food and green material are currently landfilled at Badlands and Lamb Canyon Landfills. The project will result in 200,000 tons of newly diverted food and green material partially from a landfill located in a low-income community and a reduction of 81,000 MTCO2e of greenhouse gas emissions over ten years. Benefits to priority populations include energy rate stabilization, air pollution reduction, and reduced impact to freshwater resources; as well as a wastewater treatment operator-in-training program targeted to local workers.
• Applicant: City of Redding
• County: Shasta
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $10,000,000
• Estimated GHGs (MTCO2e) over ten years: 9,000

APPROVED
Packet Pg. 156 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

Attachment I: Project Summaries for Organics Grant Program Fiscal Year 2021-22 and 2022-23
• Estimated Diversion (Tons) over ten years: 40,000
The City of Redding proposes to design and construct infrastructure that will enable the City to utilize excess anaerobic digestion capacity at the Clear Creek Wastewater Treatment Plant to divert food material from landfills for co-digestion. The project will include the construction of food waste slurry receiving equipment and storage tanks, a polishing process for intake of feedstock into the existing anaerobic digesters, and a two-stage biogas conditioning system to meet the increased output of biogas before injecting this renewable natural gas into the PG&E gas transmission main. The sourceseparated food and green material is currently landfilled at West Central Landfill. The project will result in 40,000 tons of newly diverted food material from a landfill located in a low-income community, a reduction of over 9,000 MTCO2e of greenhouse gas emissions over ten years, and will create one full-time permanent job.
• Applicant: Los Angeles County Sanitation Districts
• County: Los Angeles
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $10,000,000
• Estimated GHGs (MTCO2e) over ten years: 160,000
• Estimated Diversion (Tons) over ten years: 600,000
Los Angeles County Sanitation Districts (LACSD) proposes to expand its Food Waste Recycling Program with the construction of the Biogas Conditioning System 2 (BCS-2), which will include equipment such as biogas compression, dehydration, and treatment systems. BCS-2 will allow the co-digestion facility to operate at full capacity. BCS-2 will upgrade biogas generated from the codigestion of food material at LACSD’s Joint Water Pollution Control Plant into renewable natural gas for vehicle use at LACSD's compressed natural gas fueling station or injection into the SoCalGas utility pipeline. The source-separated food material is currently being landfilled at Mid-Valley Sanitary Landfill, Lost Hills Environmental Waste Facility, and Salton City Solid Waste Site. The project will result in 600,000 tons of newly diverted food and green material from landfills located in disadvantaged and low-income communities and a reduction of 160,000 MTCO2e of greenhouse gas emissions over ten years. Benefits to priority populations include air and water pollution reduction and energy from renewable natural gas.
• Applicant: SANCO Services LP
• County: San Diego
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $10,000,000
• Estimated GHGs (MTCO2e) over ten years: 300,000
• Estimated Diversion (Tons) over ten years: 775,000
SANCO Services LP proposes to expand its anaerobic digestion operation located at the Escondido Resource Recovery facility. The project will include the installation of two new digesters and a biogas upgrading system. The facility will also produce high-quality compost that will be sent to farms in San Diego and Imperial Counties. The project will add renewable gas injected into the San Diego Gas and Electric pipeline and be used to fuel waste collection fleets. The commingled and source-separated food and green material is currently landfilled at Sycamore and Otay Landfills. The project will result in 775,000 tons of newly diverted food and green material from landfill and a reduction of over

APPROVED
Packet Pg. 157 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

Attachment I: Project Summaries for Organics Grant Program Fiscal Year 2021-22 and 2022-23
300,000 MTCO2e of greenhouse gas emissions over ten years, and create an estimated eight permanent jobs targeting priority populations.
• Applicant: University of California, Davis
• County: Yolo
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $4,769,324
• Estimated GHGs (MTCO2e) over ten years: 18,000
• Estimated Diversion (Tons) over ten years: 75,000
UC Davis proposes to expand its Renewable Energy Anaerobic Digester facility. The facility improvements will consist of upgraded feedstock processing equipment and the installation of a gas engine generator. The food and green material are currently landfilled at Yolo County Landfill. The project will result in 75,000 tons of newly diverted food material from landfill and a reduction of 18,000 MTCO2e of greenhouse gas emissions over ten years. The project will also produce green, carbonnegative electricity for use in campus electric vehicles and electric buses, which serves the campus and surrounding community, including grade-school students, low-income residents, disabled persons, and older adults.

Compost
• Applicant: Anderson Landfill, Inc.
• County: Shasta
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $10,000,000
• Estimated GHGs (MTCO2e) over ten years: 30,000
• Estimated Diversion (Tons) over ten years: 122,000
Anderson Landfill, Inc. proposes to construct and operate a new windrow composting operation at Anderson Landfill. The newly constructed facility will have an initial throughput capacity of approximately 68,000 tons per year. The food and yard material are currently landfilled at Anderson Landfill which is located in a low-income community. The project will result in 122,000 tons of newly diverted food and green material from landfill and a reduction of 30,000 MTCO2e of greenhouse gas emissions over ten years. In addition, the facility will dedicate part of their landfill as wildlife habitat, provide financial support for various community centers, and provide an estimated eight new full-time jobs targeting a priority population.
• Applicant: California Wood Recycling dba Agromin
• County: Ventura
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $10,000,000
• Estimated GHGs (MTCO2e) over ten years: 147,000
• Estimated Diversion (Tons) over ten years: 681,000
California Wood Recycling dba Agromin proposes to expand its existing composting facility in Santa Paula. The Limoneira site will utilize a covered aerated static pile composting system to divert an additional 68,125 tons per year of food and green material from landfill. The green and food material is currently landfilled at Simi Valley Landfill, Toland Road Landfill, or Lost Hills Landfill. The project will result in 681,000 tons of newly diverted food and green material from landfill and a reduction of

APPROVED
Packet Pg. 158 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

Attachment I: Project Summaries for Organics Grant Program Fiscal Year 2021-22 and 2022-23
147,000 MTCO2e of greenhouse gas emissions over ten years. In addition, the project will provide 26 jobs targeting a priority population, support community projects with free compost, and provide funds for the Santa Paula Sports Park rehabilitation project. • Applicant: Forward, Inc.
• County: San Joaquin
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $5,167,510
• Estimated GHGs (MTCO2e) over ten years: 102,000
• Estimated Diversion (Tons) over ten years: 467,000
Forward, Inc. proposes to expand their existing composting facility by adding an aerated static pile composting system that can process an additional 200 tons of organics per day. The green and food material is currently landfilled at Forward, Inc. Landfill or Austin Road Landfill, with Forward, Inc.

Landfill located in a disadvantaged community. The project will result in 467,000 tons of newly diverted food and green material from landfill and a reduction of 102,000 MTCO2e of greenhouse gas emissions over ten years. The project will provide free compost to the community, support the Edible Schoolyard Community Farm Project, and provide three full time permanent jobs targeting a priority population.
• Applicant: Kern County
• County: Kern
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $10,000,000
• Estimated GHGs (MTCO2e) over ten years: 247,000
• Estimated Diversion (Tons) over ten years: 831,000
Kern County Public Works proposes to construct a covered aerated static pile composting system at its facility located at the Shafter Wasco Sanitary Landfill. Grant-funded equipment includes an excavator, conveyer, shredder, screen and other pre-processing equipment, and a covered aerated static pile bunker system. The green and food material is currently landfilled at Shafter-Wasco Landfill, Mojave-Rosamond Sanitary Landfill, Bena Sanitary Landfill, or Ridgecrest Recycling and Sanitary Landfill, with Shafter-Wasco Landfill located in a disadvantaged community. The project will increase composting capacity by 100,000 tons per year and result in 831,000 tons of newly diverted food and green material from landfill and a reduction of 247,000 MTCO2e of greenhouse gas emissions over ten years. It will also provide free compost for expanding tree and green zones in Kern County, and hire an estimated six new full-time permanent jobs targeting a priority population. • Applicant: Northern Recycling, LLC
• County: Yolo
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $10,000,000
• Estimated GHGs (MTCO2e) over ten years: 114,000
• Estimated Diversion (Tons) over ten years: 330,000
Northern Recycling, LLC proposes to expand a covered aerated static pile composting facility located at Yolo County Central Landfill. Grant funds will be used for a composting aeration system, working pads, and equipment to screen and sort food and green material. The green and food material is currently landfilled at Forward Landfill, Kiefer Road Landfill, Lockwood Landfill, Potrero Hills Landfill,

APPROVED
Packet Pg. 159 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

Attachment I: Project Summaries for Organics Grant Program Fiscal Year 2021-22 and 2022-23
Neal Road Landfill, or Keller Canyon. The project will divert an additional 32,970 tons per year of food and local communities’ green material from landfills. The project will result in 330,000 tons of newly diverted food and green material from landfill and a reduction of 114,000 MTCO2e of greenhouse gas emissions over ten years. In addition, the project will reduce pesticide and groundwater use in the surrounding agriculture community, support edible food recovery, and provide an estimated seven new full-time permanent jobs targeting a priority population. • Applicant: Riverside County
• County: Riverside
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $1,288,470
• Estimated GHGs (MTCO2e) over ten years: 9,000
• Estimated Diversion (Tons) over ten years: 59,000
Riverside County proposes to construct a new windrow composting facility and purchase a loader and a water tank, for the newly operational Badlands Compost Facility. The source-separated food and green material is currently landfilled at the Badlands Landfill which is located in a disadvantaged community. The project will result in 59,000 tons of newly diverted green material from landfill and a reduction of 9,000 MTCO2e of greenhouse gas emissions over ten years. In addition, the project will provide free compost for use in the local community, and an estimated two jobs targeting a priority population.
• Applicant: Western Placer Waste Management Authority
• County: Placer
• Provides Benefits to Priority Populations: No
• Grant Funds Recommended for Award: $9,960,379
• Estimated GHGs (MTCO2e) over ten years: 296,000
• Estimated Diversion (Tons) over ten years: 1,259,000
Western Placer Waste Management Authority proposes to construct a new aerated static pile composting facility and increase capacity to process food and green material. Additionally, grant funds will purchase equipment, including a grinder, stacker, conveyer, magnet, screens, and blowers.

The green and food material is currently landfilled at the Western Regional Sanitary Landfill. The project will result in 1,259,000 tons of newly diverted food and green material from landfill and a reduction of 296,000 MTCO2e of greenhouse gas emissions over ten years.

In-Vessel
• Applicant: California State University, Sacramento
• County: Sacramento
• Provides Benefits to Priority Populations: No
• Grant Funds Recommended for Award: $179,618
• Estimated GHGs (MTCO2e) over ten years: 345
• Estimated Diversion (Tons) over ten years: 958
Sacramento State University proposes to replace an organics compactor located at the Dining Commons with an in-vessel composting system. This will eliminate the need for the waste hauler to provide service for the compactor, which will reduce emissions associated with waste transportation.

APPROVED
Packet Pg. 160 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

Attachment I: Project Summaries for Organics Grant Program Fiscal Year 2021-22 and 2022-23
In addition, the food material will be composted on-site instead of being sent to Yolo County Landfill.

The compost will be used to fertilize campus lawns at Sacramento State by Grounds and Landscape Services and donated to Sacramento City Unified School District school gardens. The project will result in 958 tons of newly diverted food material from landfill and a reduction of 345 MTCO2e of greenhouse gas emissions over ten years.
• Applicant: DSM Group, LLC
• County: Sacramento
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $341,367
• Estimated GHGs (MTCO2e) over ten years: 41
• Estimated Diversion (Tons) over ten years: 260
DSM Group proposes to purchase an in-vessel composter to divert green material from cannabis production. Grant funds will also be used to purchase a bobcat skid steer loader with compost mixer, a compost bagger, and a woodchipper. The project will divert green material from the L and D Landfill located in a disadvantaged community. The project will result in 260 tons of newly diverted green material from landfill and a reduction of 41 MTCO2e of greenhouse gas emissions over ten years. • Applicant: Foodbank of Santa Barbara - Goleta
• County: Santa Barbara
• Provides Benefits to Priority Populations: No
• Grant Funds Recommended for Award: $500,000
• Estimated GHGs (MTCO2e) over ten years: 109
• Estimated Diversion (Tons) over ten years: 301
The Foodbank of Santa Barbara County proposes to install an in-vessel composter at their Goleta warehouse. The project will divert pre-consumer inedible food material from the Tajiguas Landfill located in Goleta. The composter will transform food material into compost that can be shared with the community. The project will result in 301 tons of newly diverted food material from landfill and a reduction of 109 MTCO2e of greenhouse gas emissions over ten years. • Applicant: Foodbank of Santa Barbara - Santa Maria
• County: Santa Barbara
• Provides Benefits to Priority Populations: Yes
• Grant Funds Recommended for Award: $500,000
• Estimated GHGs (MTCO2e) over ten years: 116
• Estimated Diversion (Tons) over ten years: 321
The Foodbank of Santa Barbara County proposes to install an in-vessel composter at their Santa Maria warehouse. The project will divert pre-consumer inedible food material from the Santa Maria Regional Landfill located in a low-income community. The composter will transform the food material into compost that can be shared with the community. The project will result in 321 tons of newly diverted food material from landfill and a reduction of 116 MTCO2e of greenhouse gas emissions over ten years. In addition, the project will provide free compost for use in the local community. • Applicant: University of Southern California
• County: Los Angeles
• Provides Benefits to Priority Populations: Yes

APPROVED
Packet Pg. 161 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

Attachment I: Project Summaries for Organics Grant Program Fiscal Year 2021-22 and 2022-23
• Grant Funds Recommended for Award: $116,000
• Estimated GHGs (MTCO2e) over ten years: 168
• Estimated Diversion (Tons) over ten years: 530
University of Southern California proposes to purchase an in-vessel composting system and hydraulic lift to be added to the LA Memorial Coliseum grounds by the University of Southern California. The invessel composter will be used for non-event days to capture food and green material produced onsite, diverting this material from the Sunshine Canyon Landfill. The project is located in a disadvantaged community and will reduce the environmental and health impacts of transportation the food and green material. The compost produced will be used to improve and expand landscaping and support other compost projects on site and the University of Southern California. The project will result in 530 tons of food and green material from landfill and a reduction of 168 MTCO2e of greenhouse gas emissions over ten years.

APPROVED
Packet Pg. 162 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

SERVICES AGREEMENT
† Information collected on this form is used in accordance with PG&E’s Privacy Policy. Page 1 of 7 The Privacy Policy is available at pge.com/privacy. Form No. 79-1209 Advice 4366-G
Automated Documents, Preliminary Statement, Part A January 2021 This SERVICES AGREEMENT (the "Agreement") is made and entered into as of the latest signature date in the signature block of this Agreement ("Effective Date") by and between Pacific Gas and Electric Company, a California corporation ("Utility"), and ___________________________________________________________ (the "Company").

RECITALS
WHEREAS, Utility is a public utility regulated by the California Public Utilities Commission ("CPUC") providing gas service to end-use customers within California.

WHEREAS, the Company is a sponsor of a renewable gas project and/or has an interest in Utility's ability to receive and redeliver additional renewable gas supplies on its gas utility system.

WHEREAS, the Company desires to explore a Utility interconnection, and the Utility agrees to perform services with respect thereto (the "Services"), all upon the terms and conditions set forth in this Agreement.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants set forth herein the parties agree as follows:

SECTION 1 - SERVICES

1.1. Retention. Company hereby retains Utility to provide the Services, upon the terms and conditions set forth in this Agreement.

1.2. Scope of Services. The Services to be performed by Utility shall consist of the following tasks to this Agreement, including (check all that apply), as detailed in the applicable Attachment:
• Attachment A - Interconnection Screening Study ( ),
• Attachment A1 - Preliminary Engineering Study ( ),
• Attachment A2 - Detailed Engineering Study with Optional Long Lead Material Procurement ( ),
• Attachment - A3 Pipeline Blending Exception Study ( )

APPROVED
Packet Pg. 163 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

SERVICES AGREEMENT
Automated Documents, Preliminary Statement, Part A Page 2 of 7 Form No. 79-1209
Advice 4366-G
January 2021
Unless Company has in place as of the Effective Date a valid and effective Interconnection Screening Study, the parties must (a) execute, and each party must satisfy its obligations with respect to Attachment A before Company can contract for Attachment A1, and (b) execute Attachment A1 before or concurrent with Company's contracting for Attachment A2. Further, (x) Company may execute Attachment A3 at any time after the parties have executed an Attachment A providing Company funding for an Interconnector Screening Study consistent with Attachment A3 Services, and (y) the parties must enter into a Confidentiality Agreement, the form of which is attached hereto as Attachment B, prior to Utility performing any Services pursuant to this Agreement. Each Attachment only becomes effective upon execution by both Company andUtility. No construction work shall be included or done pursuant to this Agreement.

1.3. Term. This Agreement shall be effective on the Effective Date and shall continue in full force and effect until the completion of the all Services selected under Section 1.2 above.

SECTION 2 - COMPENSATION AND EXPENSES

2.1. Compensation. An estimate of Utility's fees and all other applicable costs to be billed by Utility to Company under this Agreement are set forth in each applicable Attachment to this Agreement. In any event, Company shall be liable for the actual costs of the Services, which may be higher than the estimated costs. Actual costs shall include the actual Services rendered and all related costs incurred, and shall include permit or other fees or charges, procurement, indirect costs and overheads, carrying costs, and any related income or other tax liability thereon.

2.2. Payment. Upon execution of this Agreement, Attachment A, and Attachment B (Confidentiality Agreement), Company shall make payment to Pacific Gas and Electric Company for the Services in the amount specified in Attachment A within thirty (30) days. Upon execution of any additional Attachment (as further described in Section

1.2), Company shall make payment to Pacific Gas and Electric Company for Services in the amount specified in such Attachment(s) within thirty (30) days. Any amount billed by Utility to Company subsequent to the initial payment shall be paid by Company within twenty (20) days after receipt of Utility's invoice to the address set forth in Section 8 below.

2.3. Change Orders. Any change to the Services shall be in writing (a "Change Order") and signed by Company and Utility. If Company issues any request for a change in the Scope of the Services or the time of completion of the Services beyond those tasks described in the Services and not identified as a Change Order, but which Utility considers to be a Change Order, then Utility shall notify Company in writing and the parties shall mutually decide whether such a change in the Services or the time of completion of the Services constitutes a Change Order, which increases or decreases the Scope of the Services and increases or decreases the cost to Utility of performing the Services. If Utility issues a Change Order that results in an increase or decrease in the cost of the Services, then an adjustment shall be made to the total compensation

APPROVED
Packet Pg. 164 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

SERVICES AGREEMENT
Automated Documents, Preliminary Statement, Part A Page 3 of 7 Form No. 79-1209
Advice 4366-G
January 2021
and/or the time of completion of the Services. All written Change Orders shall become a part of this Agreement. Utility may refrain from any additional work until Company has paid such additional amount as set forth above.

2.4. Payroll Taxes. Social security, federal, and other applicable taxes shall not be withheld from payments made to Utility.

SECTION 3 - INFORMATION AND OWNERSHIP

3.1. Confidential Information. During the term of this Agreement, either party may have access to and become acquainted with confidential information and trade and business secrets of the other. Treatment of this information by both parties is set forth in the Confidentiality Agreement, the form of which is attached hereto and incorporated herein as Attachment B of this Agreement (the "Confidentiality Agreement").

3.2. Ownership and Use; Limits on Liability. Notwithstanding the above, any and all material and information prepared, accumulated or developed by Utility, any subcontractor or their respective employees, including, without limitation, documents, drawings, designs, calculations, maps, plans, workplans, text, filings, estimates, manifests, certificates, books, specifications, sketches, notes, reports, summaries, analyses, data models and samples (hereinafter, collectively "Work Product"), shall remain the property of Utility when prepared or in process, whether or not delivered to Company. Utility hereby grants to Company an unrestricted royalty-free license to use, copy, and distribute any Work Product furnished by Utility to Company under this Agreement, subject to the terms specified in the Confidentiality Agreement. The Work Product provided by Utility hereunder is intended to meet or exceed all generally accepted industry standards for this type of work; however, except as may otherwise be set forth in the applicable Attachment(s), Utility makes no warranty or representation about the fitness, suitability, reliability, availability, timeliness or accuracy of Work Product or Services for any purpose. The Work Product will be done using information and assumptions at one point of time and which are subject to change at any time that could change the results or analysis reflected in Work Product. Estimates of costs may not cover all environmental costs or other unforeseen costs, or costs resulting from changes to laws, rules and regulations governing the Services herein. Therefore, except as may otherwise be set forth in the applicable Attachment(s), Utility does not warrant the Services or Work Product for any use and specifically disclaims any liability for any subsequent use of the Work Product, or any part thereof, by Company. Except as may otherwise be set forth in the applicable Attachment(s), no warranty of any kind is or will be included as part of the Services and all express and implied warranties, including any warranties of merchantability, and/or fitness for a particular purpose are specifically disclaimed. With the exception of claims solely arising from the gross negligence or intentional misconduct by Utility that occurs while performing the Services, Company will not hold Utility liable or responsible in any way for any losses, damages, claims, costs, expenses or other obligations it incurs, or may incur, arising out of or related to Company's use of, or reliance on, any part of the Services, Work Product or other information provided by Utility hereunder.

APPROVED
Packet Pg. 165 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

SERVICES AGREEMENT
Automated Documents, Preliminary Statement, Part A Page 4 of 7 Form No. 79-1209
Advice 4366-G
January 2021
SECTION 4 - STATUS
The relationship between Utility and Company hereunder is and at all times during the term of this Agreement shall be that of independent entities. Nothing contained in this Agreement shall be construed to create a relationship of principal and agent, employer and employee, partnership or joint venture between theparties.

SECTION 5 - ATTORNEYS' FEES
Should any dispute arise regarding any term or provision of this Agreement or enforcement of any rights hereunder, or to collect any portion of the amount payable under this Agreement, then all litigation and collection expenses, witness fees, court costs and attorneys' fees shall be paid by the losing party to the prevailing party.

SECTION 6 - SUPERVISION AND COORDINATION
During the term of this Agreement, each party shall appoint a representative who will be authorized, empowered and available to act for and on behalf of each to implement the terms and conditions of this Agreement.

SECTION 7 - DISPUTES
Any dispute or need for interpretation arising out of this Agreement which cannot be resolved after a reasonable period of time of good faith negotiation may be submitted to the CPUC for resolution.

SECTION 8 - NOTICES
Any notice, demand, or request required or authorized in connection with this Agreement shall be deemed properly and duly given when sent by electronic mail as specified below:

If to Company:

E-mail Address:

If to Utility:

E-mail Address:

In addition to the notice specified above, notice may also be provided by telephone or e-mail to the telephone numbers and e-mail addresses for the representative appointed pursuant to

APPROVED
Packet Pg. 166 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

SERVICES AGREEMENT
Automated Documents, Preliminary Statement, Part A Page 5 of 7 Form No. 79-1209
Advice 4366-G
January 2021
Section 6 above set out below, but must be immediately followed up by a written notice sent pursuant to the first paragraph of this Section 8:

If to Company:

Telephone Numbers:

E-mail Address:

If to Utility:

Telephone Numbers:

E-mail Address:

Either party may change the notice information in this Section 8 by giving notice within five (5) business days prior to the effective date of the change.

SECTION 9 - SUCCESSORS AND ASSIGNS
This Agreement may be not be assigned by either party without the written consent of the other party. Consent to assignment will not be unreasonably withheld, conditioned or delayed.

Company shall have the right to assign this Agreement, without the consent of Utility, for collateral security purposes to aid in providing financing its renewable gas project. Company will promptly notify Utility of any such assignment for collateral security purposes. Any assignment for collateral purposes entered into by Company shall require that upon any exercise of remedies by the financing party, the entity substituted for Company shall have an equal or greater credit rating as Company and have the legal authority and operational ability to satisfy the obligations of Company under this Agreement.

Either party shall have the right to assign this Agreement, without the consent of the other Party, when the assignment is to a successor, representative, or assignee which shall succeed by purchase, merger, corporate reorganization/restructuring or consolidation to all or substantially all of the assets of the assigning party.

Assignment shall not relieve the assignor of its obligations under this Agreement for the period before the assignment becomes effective, nor shall the non-assigning party's obligations be enlarged, in whole or in part, by reason of the assignment. At the time the assignment becomes effective, the assignee shall become a party to this Agreement and shall undertake all rights and responsibilities under this Agreement.

APPROVED
Packet Pg. 167 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

SERVICES AGREEMENT
Automated Documents, Preliminary Statement, Part A Page 6 of 7 Form No. 79-1209
Advice 4366-G
January 2021
Any attempted assignment that violates any of the requirements of this Section 9 is void and ineffective.

SECTION 10 - APPLICABLE LAW
The provisions of this Agreement shall be construed and enforced in accordance with the laws of the State of California, without giving effect to its choice of law provisions.

SECTION 11 - WAIVERS
The failure or delay of either party to exercise or enforce at any time any of the provisions of this Agreement shall not constitute or be deemed a waiver of that party's right thereafter to enforce each and every provision of the Agreement and shall not otherwise affect the validity of this Agreement.

SECTION 12 - SEVERABILITY
If any provision of this Agreement is finally determined to be contrary to, prohibited by, or invalid under applicable laws or regulations, such provision shall become inapplicable and shall be deemed omitted from this Agreement. Such determination shall not, however, in any way invalidate the remaining provisions of thisAgreement.

SECTION 13 - ENTIRE AGREEMENT ANDAMENDMENTS
This Agreement and its Attachments constitute the entire understanding and agreement between the parties relating to the subject matter hereof and supersedes any prior written or oral understanding or agreement between the parties relating to the subject matter hereof.

This Agreement shall not be amended, altered, or supplemented in any way except by an instrument in writing, signed by the duly authorized representative of the parties that expressly references this Agreement.

APPROVED
Packet Pg. 168 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

SERVICES AGREEMENT
Automated Documents, Preliminary Statement, Part A Page 7 of 7 Form No. 79-1209
Advice 4366-G
January 2021
IN WITNESS WHEREOF, the parties have executed this Agreement as of Effective Date.

Pacific Gas and Electric Company
Company Name
Signature Signature
Print Name Print Name
Title Title
Date Date

APPROVED
Packet Pg. 169 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

PRELIMINARY ENGINEERING STUDY -
ATTACHMENT A-1
† Information collected on this form is used in accordance with PG&E’s Privacy Policy. Page 1 of 2 The Privacy Policy is available at pge.com/privacy. Form No. 79-1209A-1, Attachment A-1 Advice 4366-G
Automated Documents, Preliminary Statement, Part A January 2021 Utility will provide the Company with a report that provides a Preliminary Engineering Study ("PES") requested by the Company for construction of necessary facilities as described below (the "Services") following completion of an Interconnection Screening Study for the same location and less than or equal to the maximum volume / flow rate that will be the basis for this PES.

Utility proposes to analyze the impact on its gas transmission system of receiving minimum, average and maximum,
respectively, thousand Standard cubic feet per day (MScfd) on a 1/24th ratable hourly basis of new supply at ____________________________________________________, California, on a ( ) Displacement and/or an ( ) Expansion Receipt Point Capacity basis and identify any system improvements necessary to accept this newsupply.

The cost estimate calculated by Utility will include, but not be limited to, land acquisition, site development, right-of-way, metering, gas quality, permitting, regulatory, environmental, unusual construction costs, and, if applicable, operating and maintenance costs for any facility improvements, accurate to +100% / -50% based on a site visit and route evaluation for the Company's project. The findings and estimate will not constitute a proposal by Utility. Utility will not have performed a specific site or route evaluation forthe Company's project in the development of this estimate. Other service costs associated with construction of the Interconnector's Facility that are not part of already offered services could include, but not be limited to, engineering, consulting, contracting, construction costs, and environmental studies.

Utility's construction costs continue to rise with increasing costs of labor and materials.

Since the PES is developed using average historical project cost data, it is highly likely that the actual construction costs for the Company's particular project will vary significantly from the PES. Utility urges the Company to retain the services of a thirdparty engineering construction firm or enter into a Detailed Engineering Study with Utility to develop a more accurate construction cost estimate for this specific project.

Because of the exclusions and limitations of this initial review, Utility does not recommend that the Company use the PES for any other purpose, including any substantive planning or other decisions regarding the cost or viability of its project, except to further evaluate Company's project via a Utility Detailed Engineering Study.

Any use by the Company is solely at its own risk and should factor in the above risks and limitations.

A report that summarizes the results of Utility's analyses, identifies the study parameters, assumptions, limitations and the estimated construction costs of any facility improvements, evaluates whether the Interconnection Screening Study identified

APPROVED
Packet Pg. 170 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

PRELIMINARY ENGINEERING STUDY -
ATTACHMENT A-1
Automated Documents, Preliminary Statement, Part A Page 2 of 2 Form No. 79-1209A-1, Attachment A-1
Advice 4366-G
January 2021
pipeline system has sufficient physical Takeaway Capacity tosafely accommodate Company's specified maximum volume/flow rate on a ratable 1/24th hourly basis, Utility pipeline routing recommendation using Utility's rights-of-way, identification of the then current maximum allowable operating pressure and, if available, the operating pressures of the Utility's receiving pipeline system and potential pipeline route obstructions as determined by the Utility's physical observations will be provided to the Company.

The estimated cost to perform the Services is $ ________________________________.

Utility will complete the analysis within ____________________________ business days after receipt and Utility posting ofpayment.

Payment in full of the estimated cost of the Services is required upon execution of an Attachment A1 to proceed with the analysis. The Company will be responsible forthe actual costs of the Services; to this end, an invoice or refund will be issued to the Company at the completion forany difference between the actual costs and this estimate.

Capitalized terms used but not defined in this Attachment have the meaning ascribed to them in Utility's Tariff Rule No. 29.

Accepted and agreed to by their respective authorized representatives:

Pacific Gas and Electric Company
Company Name
Signature Signature
Print Name Print Name
Title Title
Date Date

APPROVED
Packet Pg. 171 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383)) aEsoLUTzo v No. Za22- aol
A RESOLUTION C} F THE CITY COUNCIL F T IE CITY OF REDDING AUTHORIZING SUBMITTAL 4F APPLICATIC? N(S) Ft3R ALL
CALRECYCLE +GRANTS F4R WHICH THE CITY OF REDDING IS

ELIGIBLE
WHEREAS, Public Resources Code sections 4$ 000 et seq. authorize the Department of Resources Recyeling and Recovery ( CalRecycle) to administer various grant programs { grants) in furtherance of the State of CaLifornia' s { State} effarts to reduce, recycle and reuse solid waste generated in the State thereby preserving landfill capaeity and protecting public health and safety, and the environment; and
WHEREAS, in furtherance ofthis authority CalRecycle is required ta establish procedures governing the applieation, awarding, and management ofthe grants; and WHEREAS, CalRecyele grant applicatian procedures require, amang other tl ings, an applicant' s governing body to deelare by resolution certain authorizations related to the administration of CalRecycle grants;
NOW, THEREFQRE, the City Council RESC} LVES as follows:

1. To authorize the submittal flf application o CalRecycle for all grants far which the City of Redding is eligible; and

2. To authorize the City Manager, or designee, to execute in the name of the City of Redding al1 grant documents, including but not limited ta, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project; and

3. To adopt these autharizations as effective for 5 years from the date of adoption of this resolution, until January 18, 2027.

I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 18th day af January, 2022, and was duly adopted at said meeting by the fallowing vote:

AYES: Councii Members - Dacquista, Mezzano, Resner, Winter, and Schreder NOES: Council Members - None
ABSTAIN: ouncii Members - None
ABSENT. Council Members— None
Y~
F _. r
R`ISTEN SC EDER, Mayor
ATTEST: APPR{JVED AS Tt? FORM:

PAMELA MIZE, Ci Clerk BARRY E. e ALT, ity A torney

APPROVED
Packet Pg. 172 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383)) Monthly Public Meeting

10:00 A.M., December 19, 2023
Cal/EPA Building – Byron Sher Auditorium
Via Webcast
A. DIRECTOR’S REPORT
Presentations or discussions by the Director and/or Executive Offices regarding department matters, legislative updates, public affairs, or initiatives.

B. POLICY & PROGRAM UPDATE
Action Items

1. SB 1383 Implementation
Consideration of a Technology Determination for H Cycle Pursuant to Article 2 of the SB 1383 Regulations
Department Staff Contact: [email protected] Public Notice
C. GRANT AND LOAN PROGRAMS
Action Items

1. Awards for the Organics Grant Program (Fiscal Years 2021-22 and 2022-23) Department Staff Contact: [email protected] Public Notice

2. Eligibility Criteria and Evaluation Process for the Redemption Innovation Grant Program (California Beverage Container Recycling Fund, Fiscal Year 2022-23) Department Staff Contact: [email protected] Public Notice

3. Eligibility Criteria and Evaluation Process for the Local Conservation Corps SB 1013 Grant Program (SB1013, Fiscal Year 2022-23)
Department Staff Contact: [email protected]
Public Notice

4. Eligibility Criteria and Evaluation Process for the Workforce Development Grant Program (AB 179, Fiscal Year 2022‒23)
Department Staff Contact: [email protected] Public Notice

APPROVED
Packet Pg. 173 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

Information Item

1. Award for the Beverage Container Redemption Pilot Project Grant Program (California Beverage Container Recycling Fund Fiscal Year 2022-23) Department Staff Contact: [email protected] Public Notice

2. Awards for the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program (Farm and Ranch Cleanup Account, Fiscal Year 2023-24) Department Staff Contact: [email protected] Public Notice

3. Awards and Distribution of Payments for the Used Oil Payment Program (Used Oil Recycling Fund, Fiscal Year 2023-24)
Department Staff Contact: [email protected] Public Notice

4. Awards for the Household Hazardous Waste Grant Program (Integrated Waste Management Account, Fiscal Year 2023-24)
Department Staff Contact: [email protected] Public Notice

5. Awards for the Rubberized Pavement Grant Program (Tire Recycling Management Fund, Fiscal Year 2023-24)
Department Staff Contact: [email protected] Public Notice

6. Approval of a Recycling Market Development Zone (RMDZ) Loan in the amount of $3,500,000 for Pinnpack Capital Holdings, a Delaware LLC (Recycling Market Development Revolving Loan Subaccount, Fiscal Year 2023–24).

Department Staff contact: [email protected] Public Notice
Open Applications:

Farm and Ranch Solid Waste Cleanup and Abatement Grant Program Application Due Dates: January 9, 2024 (Cycle 81); April 2, 2024 (Cycle 82) Beverage Container Recycling City/County Payment Program Application Due Date: January 17, 2024
Community Composting for Green Spaces Grant Program
Application Due Date: January 23, 2024

APPROVED
Packet Pg. 174 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

D. POLICY MANDATES/WORKSHOPS/RULEMAKING PROCEEDINGS
Extended Producer Responsibility Program Updates

1. SB 54 Implementation
Department Staff Contact: [email protected]

2. Review of the Drug Takeback Solutions Foundation’s Revised 2022 Annual Report for Covered Drugs
Department Staff Contact: [email protected]
Information Items

1. Consideration of Carpet America Recovery Effort’s Contingency Plan Amendment
Department Staff Contact: [email protected] Public Notice

2. Overview of the 2022 California Waste Tire Market Report Department Staff contact: [email protected] Public Notice
Action Items

1. AB 1201 Bifurcated Collection Determination
Department Staff Contact: [email protected] Public Notice
E. ELECTRONIC WASTE RECYCLING PROGRAM
Information Items

1. 2023 Covered Electronic Waste Net Cost Reporting Requirement Department Staff Contact: [email protected] Public Notice
F. LOCAL ASSISTANCE
Action Items

1. Five-Year Review Report for the Countywide Integrated Waste Management Plan for the County of Alameda
Department Staff Contact: [email protected] Public Notice

APPROVED
Packet Pg. 175 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

G. SOLID WASTE AND TIRE FACILITIES
Action Items

1. City of Claremont Community Services Department, located at 1616 Monte Vista Avenue, Claremont, CA 91711, San Bernardino County, New Solid Waste Facilities Permit, Action Needed January 8, 2024
Department Contact: [email protected]
Public Notice

2. Bee Canyon Greenery, located at 11002 Bee Canyon Access Road, Irvine, CA 92602, Orange County, Revised Compostable Materials Handling Facility Permit, Action Needed December 31, 2023
Department Contact: [email protected]
Public Notice

3. Yolo County Central Landfill, located at 44090 CR 28H, Woodland, CA 95776, Yolo County, Revised Solid Waste Facilities Permit, Action Needed January 19, 2024
Department Contact: [email protected]
Public Notice

4. Otay Mesa Compost Facility, located at 434 Alta Road, San Diego, CA 92154 San Diego County, New Compostable Materials Handling Facility Permit, Action Needed January 20, 2024
Department Contact: [email protected]
Public Notice

5. Mountain View Organic Waste Processing Facility, located at 1641 Mountain View Avenue, Oxnard, CA 93030, Ventura County, Revised Solid Waste Facilities Permit, Action Needed February 3, 2024
Department Contact: [email protected] Public Notice

6. Madison Materials, Inc., located at 1035 East Fourth Street, Santa Ana, CA 92701, Orange County, Modified Solid Waste Facilities Permit, Action Needed February 3, 2024
Department Contact: [email protected]
Public Notice

APPROVED
Packet Pg. 176 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

H. PUBLIC COMMENT
Get involved in CalRecycle’s decision-making process. To more fully engage with Californians on monthly public meeting agenda items, CalRecycle accepts welcomes live public comments in-person or over-the-phone.
_____________________________________________________________________ CalRecycle has a public noticing site to provide interested parties with information about programs, activities, and departmental decisions.
• To review final CalRecycle decisions and other department activities, please go to: CalRecycle.ca.gov/PublicInfo/ or CalRecycle.ca.gov/BevContainer/Notices. • For public meeting participation, listserv, and feedback information, please go to:

CalRecycle.ca.gov/PublicMeeting/
People may speak on any matter concerning CalRecycle with the exception of items related to pending adjudicative (certification or enforcement) proceedings.

APPROVED
Packet Pg. 177 Attachment: Previous Staff Report - 02/06/2024 (4.11(a)--Approve the First Amendment to Contract (C-10383))

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to Consulting and Professional Services Contract (C-7377) for the Eastside Road Bridge at Canyon Hollow Creek Replacement Project:
(1) Approve the Third Amendment to the Consulting and Professional Services Contract (C7377) with Dokken Engineering in the amount of $21,980.41 for a total not to exceed fee of $456,171.77;
(2) Authorize the Mayor, or designee, to execute the Amendment; and (3) Authorize the City Manager, or designee, to approve additional contract amendments in an amount not to exceed $40,000 in total.

Fiscal Impact
The Eastside Road Bridge at Canyon Hollow Creek Replacement Project (Project) is estimated to cost approximately $4.5 million. The project is 88.53 percent funded by the Federal Highway Bridge Program, with the remaining 11.47 percent being funded by the City of Redding’s (City) Transportation Impact Fee fund or the Streets Division Maintenance fund. The total project cost includes a consultant contract with Dokken Engineering, (Dokken) to provide bridge design services through construction. This amendment will increase Dokken’s consultant contract by $21,980.41.

See table below for a summary of amended costs to Dokken’s consultant contract (table only includes amendments that adjusted the contract amount).

Original
Contract
Amount
1st Amendment 3rd Amendment
Adjustment
Revised
Total Adjustment Revised Total
$399,424.91 $34,766.45 $434,191.36 $21,980.41 $456,171.77 MEETING DATE: March 4, 2025
ITEM NO. 4.11(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(b)--Approve the Third Amendment to Consulting and Professional Services Contract (C-7377) for the Eastside Road Bridge at Canyon Hollow Creek Replacement Project Michael Webb, Public Works
Director
Packet Pg. 178
Report to Redding City Council February 25, 2025
Re: 4.11(b)--Approve the Third Amendment to Contract (C-7377) Page 2 Alternative Action
The City Council (Council) may choose not to authorize the amendment and provide staff with an alternate direction. Without the proposed amendment, Dokken will not be able to complete the bridge design or provide services during the construction phase of the project. This alternative would delay or likely eliminate the replacement of this bridge and jeopardize federal funding.

Background Analysis
In August 2017, an engineering and environmental services contract was executed with Dokken for the project. The project has been proceeding through the various stages of work with the right-of-way phase nearly complete allowing Dokken to begin on the final construction documents. However, before Dokken can proceed with preparing the final plans and specifications, Caltrans has requested that additional and originally unanticipated environmental studies be completed. For Dokken to complete the necessary environmental tasks and complete the construction documents for advertising, additional funds are required as requested in this amendment. The amendment has been approved as to form by the City Attorney.

The Eastside Road bridge was constructed in 1950 and is currently designated as “functionally obsolete” per Caltrans’ Bridge Inspection Reports. This designation is largely due to the amount of traffic using the bridge and the lack of shoulders and sufficient pedestrian facilities. The project will replace the existing 27-foot-wide 2-lane bridge, with a 48-foot-wide bridge that includes two, 12-foot travel lanes with 8-foot shoulders, a 6-foot wide sidewalk and barrier on the east to accommodate pedestrian traffic, and a concrete barrier on the west side. These improvements meet the requirements of both the American Association of State Highway and Transportation Officials and the City.

Environmental Review
This action is not a project as defined by the California Environmental Quality Act (CEQA). As the environmental studies and design progress staff will prepare CEQA documentation for future Council approval.

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

Attachments
C-7377 Amendment 3
Contract C-7377
C-7377 Amendment 1
C-7377 Amendment 2
Packet Pg. 179
Third Amendment to Contract (7377)

THIRD AMENDMENT TO THE

CONSULTING AND PROFESSIONAL SERVICES CONTRACT

WITH FHWA FUNDING/ASSISTANCE BETWEEN
THE CITY OF REDDING AND DOKKEN ENGINEERING, INC. (C-7377) This Third Amendment (“Third Amendment”) is made and entered into by and between the City of Redding, a municipal corporation, (“City”) and Dokken Engineering, Inc., (“Consultant”) (collectively the “Parties” and individually a “Party”).

RECITALS
WHEREAS, the Parties have previously entered into Consulting and Professional Service Contract on August 31, 2017, for the purpose of Engineering Services for the Eastside Road Bridge at Canyon Hollow Creek Replacement Project (C-7377) (collectively referred herein as the “Contract”) and amended this contract on October 28, 2021, (“First Amendment”), November 3, 2022, (“Second Amendment”) (collectively referred herein as the “Contract”); and
WHEREAS, the Parties desire to amend the Contract to (1) add tasks to the Scope of Work (2) increase the contract amount.

NOW, THEREFORE, the Parties for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby agree as follows:

I. Subsection A of Section 1 of the Contract is hereby amended and replaced in its entirety to read as follows:

Subsection 1(A). Subject to the terms and conditions set forth in this Contract, Consultant shall provide to City the services described in Exhibit A, Exhibit A-1, and A-2, attached and incorporated herein. Consultant shall provide the services at the time, place and in the manner specified in Exhibit A, Exhibit A-1, and Exhibit A-2. All Consultant personnel listed as members of the project team in the attached exhibits shall remain on project unless prior approval for the change in personnel has been granted by City’s Contract Administrator.

All other subsections of Section 1 of the Contract shall remain unchanged and in full force and effect.

I. Subsection B of Section 2 of the Contract is hereby amended and replaced in its entirety to read as follows:

Subsection 2(B). In addition to the allowable incurred costs City will pay the Consultant a fixed fee of $25,372.07. The fixed fee is nonadjustable for the term of the Contract, except in the event of a significant change in the scope of work and such adjustment is made by contract amendment.

II. Subsection I of Section 2 of the Contract is hereby amended and replaced in its entirety to read as follows:

Subsection 2(I). In accordance with Exhibit B, Exhibit A-1, and Exhibit B-1 attached and incorporated herein, the total amount payable by City including the fixed fee shall not exceed $456,171.77
Packet Pg. 180 Attachment: C-7377 Amendment 3 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 181 Attachment: C-7377 Amendment 3 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) 110 Blue Ravine Rd, Suite 200, Folsom, CA 95630-4713 • Tel: 916.858.0642 • Fax: 916.858.0643 • www.dokkenengineering.com January 7, 2025
Ms. Corri Vandiver, P.E.

City of Redding
777 Cypress Avenue
Redding, CA 96001
RE: Eastside Road Bridge Replacement Project, Amendment No. 3 Dear Ms. Vandiver:

Dokken Engineering has obtained a scope and fee for Geocon Consultants, Inc., to perform the hazardous waste testing required by Caltrans District 2 for the Eastside Road over Canyon Hollow Creek bridge replacement. Dokken will oversee this work as an amendment to Task 2.11 for Caltrans Local Assistance Support as described below.

Task 2.0 Environmental Documentation and Permitting
Task 2.11 Caltrans Local Assistance Support
Dokken will oversee Geocon Consultants, Inc., during hazardous waste sampling and preparation of a Phase II Preliminary Site Investigation. The following hazardous waste sources will be sampled and evaluated:
• Sampling and laboratory analysis to determine levels of lead, creosote, pesticides, and petroleum products in soils to be disturbed or excavated during construction activities.
• Test yellow thermoplastic paint and striping as needed. • Assess and test for lead paint on the bridge.
• Conduct an Asbestos Containing Material (ACM) Survey by a Certified Asbestos Consultant (CAC).

A Phase II Preliminary Site Investigation report will be generated documenting the results of the testing and any necessary protective measures recommended for implementation during construction.

Cost Proposal
The not to exceed cost proposal to complete the above tasks based on time and materials is $21,980.41. Please see the attached cost proposal and rate schedule for billing rates.

If you have any questions, please contact me.

Sincerely,

DOKKEN ENGINEERING
Brian Stephenson, P.E.

Project Manager
Exhibit A-2
Packet Pg. 182 Attachment: C-7377 Amendment 3 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) COST PROPOSAL ‐ ESTIMATED HOURS BY TASK

CITY OF REDDING

EASTSIDE ROAD BRIDGE AT CANYON HOLLOW CREEK REPLACEMENT PROJECT AMENDMENT NO. 3
January 7, 2025
Brian Stephenson, PE*
Project Manager
Zach Liptak*
Senior Environmental Planner TOTAL HOURS TOTAL COST
Ewert, Juhrend, Staff
Principal Engineer/ Geologist
Project Engineer/ Geologist/
Scientist
Dennig, Rice, Staff
Certified Asbestos Consultant
(PW)
Field Technician (PW)
Brown, Staff
GIS Specialist
Ingraham, Staff
Word Processing TOTAL HOURS OTHER DIRECT COST TOTAL COST FULLY BURDENED RATE $ 248.78 $ 166.79 $ 226.93 $ 181.55 $ 177.82 $ 156.01 $ 166.42 $ 113.47 TASK 2.0 ENVIRONMENTAL DOCUMENTATION AND PERMITTING 1 3 4 749.16$ 2 29 7 20 4 2 64 10,255.00 $ $ 21,231.25 68 10,255.00 $ $ 21,980.41 Task 2.11 Caltrans Local Assistance Support 1 3 4 749.16$ 2 29 7 20 4 2 64 10,255.00 $ $ 21,231.25 68 $10,255.00 21,980.41 $ TOTAL HOURS 1 3 4 2 29 7 20 4 2 64 68
TOTAL COST $ 500.38$ 248.78 749.16$ 453.87$ 5,264.84$ 1,244.77$ 3,120.17$ $ 665.67 226.93$ $ 10,255.00 $ 21,231.25 $ 10,255.00 $ 21,980.41 GRAND
TOTAL
HOURS
GRAND

TOTAL OTHER

DIRECT COSTS

GRAND TASK DESCRIPTION TOTAL COST
DOKKEN ENGINEERING GEOCON CONSULTANTS, INC.

Exhibit B-1Page 1 of 4
Packet Pg. 183
Attachment: C-7377 Amendment 3 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Note: Mark-Ups are Not Allowed
Consultant: DOKKEN ENGINEERING
Project No. -- Contract No. C-7377 Date
Project Name Eastside Road Bridge at Canyon Hollow Creek Replacement Project - Amendment No. 3

DIRECT LABOR
Classification/Title Name Hours Actual Hr Rate* Total
Project Manager Brian Stephenson, PE* 1 88.00 $ $ 88.00 Principal in Charge STAFF 0 $ 125.00 $ -
QA/QC Engineer STAFF 0 $ 115.00 $ -
Senior Engineer STAFF 0 $ 88.00 $ -
Associate Engineer STAFF 0 $ 62.00 $ -
Assistant Engineer STAFF 0 $ 45.00 $ -
Senior CAD Detailer STAFF 0 $ 82.00 $ -
Engineering Technician STAFF 0 $ 45.00 $ -
Senior Environmental Planner Zach Liptak* 3 $ 59.00 $ 177.00 Environmental Manager STAFF 0 $ 90.00 $ -
Principal Planner STAFF 0 $ 85.00 $ -
Senior Environmental Planner STAFF 0 $ 60.00 $ -
Associate Environmental Planner STAFF 0 $ 48.00 $ -
Environmental Planner STAFF 0 $ 39.00 $ -
Environmental Technician STAFF 0 $ 30.00 $ -
Right of Way Manager STAFF 0 $ 79.00 $ -
Senior Right of Way Agent STAFF 0 $ 63.00 $ -
Right of Way Agent STAFF 0 $ 38.00 $ -
Senior Appraiser STAFF 0 $ 58.00 $ -
Appraiser STAFF 0 $ 40.00 $ -
Right of Way Assistant / Appraiser Assistant STAFF 0 $ 31.00 $ - Right of Way Technician / Appraiser Technician STAFF 0 $ 25.00 $ - 4 LABOR COSTS
a) Subtotal Direct Labor Costs $ 265.00
b) Anticipated Salary Increases $0.00
c) TOTAL DIRECT LABOR COSTS [(a) + (b)] $ 265.00

INDIRECT COSTS
d) Fringe Benefits (Rate: 72.00% ) c) Total Fringe Benefits [(c) x (d)] $ 190.80 f) Overhead (Rate: 7.00% ) g) Overhead [(c) x (f)] $ 18.55 h) General and Administrative (Rate: 78.00% ) i) Gen & Admin [(c) x (h)] $ 206.70 j) TOTAL INDIRECT COSTS [(e) + (g) + (i)] $ 416.05
FIXED FEE k) TOTAL FIXED FEE [(c) + (j)] x fixed fee 10% ] $ 68.11 l) CONSULTANT’S OTHER DIRECT COSTS (ODC) – ITEMIZE (Add additional pages if necessary) Quantity Unit Unit Cost Total
i) TOTAL OTHER DIRECT COSTS $ -
m) SUBCONSULTANTS' COSTS (Add additional pages if necessary) • GEOCON CONSULTANTS, INC. $ 21,231.25
m) TOTAL SUBCONSULTANTS' COSTS $ 21,231.25
n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l) + (m)] $ 21,231.25 TOTAL COST [(c) + (j) + (k) + (n)] $ 21,980.41
*Employees will be billed at their actual pay rates within the ranges specified above. When actual rates change, employees will be billed at their updated rate.

NOTES:
$33.00 - $43.00
$70.00 - $110.00
$20.00 - $30.00
$50.00 - $80.00
$35.00 - $65.00
$65.00 - $125.00
$65.00 - $125.00
$48.00 - $78.00
$20.00 - $35.00
$36.00 - $56.00
$60.00 - $90.00
$85.00 - $165.00
$85.00 - $165.00
$37.00 - $50.00
$25.00 - $75.00
$50.00 - $90.00
$50.00 - $90.00
$80.00 - $120.00
$70.00 - $100.00

COST PROPOSAL

COST-PLUS-FIXED FEE CONTRACT
(DESIGN, ENGINEERING AND ENVIRONMENTAL STUDIES)
January 7, 2025
Range

3. Anticipated salary increases calculation (page 2) must accompany.

1. Key personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with two asterisks (**). All costs must comply with the Federal cost principles. Subconsultants will provide their own cost proposals.

2. The cost proposal format shall not be amended. Indirect cost rates shall be updated on an annual basis in accordance with the consultant’s annual accounting period and established by a cognizant agency or accepted by Caltrans.

Description of Item
$50.00 - $80.00
$35.00 - $65.00
$25.00 - $35.00
Prime Consultant Subconsultant 2nd Tier Subconsultant
Exhibit B-1

Packet Pg. 184 Attachment: C-7377 Amendment 3 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Direct Labor Total Hours per Avg 5 Year
Subtotal per Cost Cost Proposal Hourly Contract
Proposal Rate Duration
= $66.25 Year 1 Avg
Hourly Rate
Avg Hourly Rate Proposed Escalation
Year 1 + 5.0% = $69.56 Year 2 Avg Hourly Rate
Year 2 + 5.0% = $73.04 Year 3 Avg Hourly Rate
Year 3 + 5.0% = $76.69 Year 4 Avg Hourly Rate
Year 4 + 5.0% = $80.53 Year 5 Avg Hourly Rate
Estimated % Completed Total Hours per Cost Total Hours per Each Year Proposal Year
Year 1 * 4 = 4 Estimated Hours Year 1
Year 2 * 4 = 0 Estimated Hours Year 2
Year 3 * 4 = 0 Estimated Hours Year 3
Year 4 * 4 = 0 Estimated Hours Year 4
Year 5 * 4 = 0 Estimated Hours Year 5
Total Total = 4
Avg Hourly Rate Estimated hours
(Calculated above) (Calculated Above)
Year 1 * 4 = Estimated Hours Year 1
Year 2 * 0 = Estimated Hours Year 2
Year 3 * 0 = Estimated Hours Year 3
Year 4 * 0 = Estimated Hours Year 4
Year 5 * 0 = Estimated Hours Year 5
Total Direct Labor Cost with Escalation =
Direct Labor Subtotal before Escalation =
Estimated total of Direct Labor Salary Increase = Transfer to Page 1 NOTES:

3. This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted.

4. Calculations for anticipated salary escalation must be provided.

Cost Per
Year

COST PROPOSAL

COST-PLUS-FIXED FEE CONTRACT
(CALCULATIONS FOR ANTICIPATED SALARY INCREASES)

1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours)

0.0%

0.0%

0.0%
100.000%

4. Calculate Total Costs including Escalation (Multiply Average Hourly Rate by the number of hours) $73.04
$265.00
$0.00

1. This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase, the # of years of the contract, and a breakdown of the labor to be performed each year.

2. An estimation that is based on direct labor multiplied by salary increase % multiplied by the # of years is not acceptable. (i.e. $250,000 x 2% x 5 yrs = $25,000 is not an acceptable methodology) $76.69 $0.00
$80.53 $0.00
$265.00
$66.25 $265.00
$69.56 $0.00
$73.04 $0.00

0.0%
$265.00 4

1. Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by proposed escalation %) $66.25
$69.56
$76.69

3. Calculate estimated hours per year (Multiply estimate % each year by total hours) 100.0%
Exhibit B-1

Packet Pg. 185 Attachment: C-7377 Amendment 3 (4.11(b)--Approve the Third Amendment to Contract (C-7377))

COST PROPOSAL
Certification of Direct Costs:

I, the undersigned, certify to the best of my knowledge and belief that all direct costs identified on the cost proposal(s) in this contract are actual, reasonable, allowable, and allocable to the contract in accordance with the contract terms and the following requirements:

I. Generally Accepted Accounting Principles (GAAP)

2. Terms and conditions of the contract

3. Ti1Jc 23 United States Code Scc1!on 112 - Letting of Contracts

4. 4 8 Code of Federal Regulo1ions Pan 31 - Contract Cost Principles and Procedures 5 23 Code of Federal Regula1ions Pan I 72 - Procurement, Management, and Administration of Engineering and Design Related Service

6. 48 Code of Federal Regulo1ions Pan 9904 - Cost Accounting Standards Board (when applicable) All costs must be applied consistently and fairly to all contracts. All documentation of compliance must be retained in the project files and be in compliance with applicable federal and state requirements. Costs that are noncompliant with the federal and state requirements are not eligible for reimbursement. Local governments are responsible for applying only cognizant agency approved or Caltrans accepted Indirect Cost Rate(s).

Prime Consultant or Suhconsultant Certifying:

Name**: Title**: President
Signature: Date of Certification (mm/dd/yyyy):

Email**: .com Phone Number: 916-858-0642
Address: I lO Blue Ravine Road. Suite 200, Folsom, CA 95630-4713 •• An individual executive or financial officer of the consultant's or subconsultant's organization at a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

List services the consultant is providing under the proposc<l contract" Professional Engineering, Environmental and Right of Way Services Exhibit B-1

Packet Pg. 186 Attachment: C-7377 Amendment 3 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 187 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 188 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 189 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 190 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 191 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 192 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 193 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 194 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 195 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 196 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 197 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 198 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 199 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 200 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 201 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 202 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 203 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 204 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 205 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 206 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 207 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 208 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 209 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 210 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 211 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 212 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 213 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 214 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 215 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 216 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 217 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 218 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 219 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 220 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 221 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 222 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 223 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 224 Attachment: Contract C-7377 (4.11(b)--Approve the Third Amendment to Contract (C-7377))

PAMELA MIZE, CITY CLERK

SHARLENE TIPTON, ASSISTANT CITY CLERK
530.225.4447
530.225.4463 FAX
Dokken Engineering
John Klemunes, Jr.
110 Blue Ravine Rd, Suite 200
Folsom, CA 95630

CITY OF REDDING
77 C' ii,iI ES5 AvEi,. uE, REDD1Nc. CA 9600!
P.Q. F, C),< t:; i6U7 i . RroL>!r: G. CA 960=>9 %i 07 1 November 1, 2021
SUBJECT: 1st Amendment to Consulting and Professional Services Contract, C- 7377 Dear John Klemunes, Jr.,
Enclosed please find the fully executed original of the above referenced First Amendment to Consulting and Professional Services Contract by and between the City of Redding and Dokken Engineering for Eastside Road Bridge at Canyon Hollow Creek Replacement.

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,
Luisa Klapperich
Executive Assistant, II
Enclosure
cc: McCollum
Vandiver
Grannis
Packet Pg. 225 Attachment: C-7377 Amendment 1 (4.11(b)--Approve the Third Amendment to Contract (C-7377))

FIRST AMENDMENT TO
CONSULTING AND PROFESSIONAL SERVICES CONTRACT (C- 7377)

WITH FHWA FUNDING/ASSISTANCE
Eastside Road Bridge at Canyon Hollow Creek Replacement Project The Consulting and Professional Services Contract C- 7378 (" Contract") dated August 31, 2017, between the City ofRedding, California (" City") a municipal corporation, and Dokken Engineering (" Consultant") is hereby amended as follows:

SECTION LA is amended to read in its entirety as follows:

A. Subject to the terms and conditions set forth in this Contract, Consultant shall provide to City the services described in Exhibit A and Exhibit A- 1, attached and incorporated herein. Consultant shall provide the services at the time, place and in the manner specified in Exhibit A and Exhibit A- 1. All Consultant personnel listed as members of the project team in the attached exhibits shall remain on project unless prior approval for the change in personnel has been granted by City' s Contract Administrator.

The Exhibit A- 1 attached to this First Amendment is incorporated into the Contract dated August 31, 2017, as Exhibit A- 1.

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

The total amount payable by City including fixed fee shall not exceed $ 434, 191. 36 SECTION 3. E is amended to read in its entirety as follows:

E. The maximum amount for which the City shall be liable if this contract is terminated is 434, 191. 36 dollars.

All other terms and conditions of the Contract dated August 31, 2017, shall remain in full force and effect.

The date ofthis Amendment shall be the date that it is signed by the City.

Packet Pg. 226 Attachment: C-7377 Amendment 1 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) IN WITNESS WHEREOF, City and Consultant have executed this Amendment on the days and year set forth below:

CITY OF REDDING
A Municipal Corporation
Dated: 2021
Barry Tipp n, City Manager
Attest:

PAMELA MIZE, City L r .

Form Approved:

BARRYE. De WALT
City Attorney
I3y:

Dokken Engineering
Dated: 2021 a7 4 i4nv / Z
By: SAN A klery,uhes
14en t
Packet Pg. 227 Attachment: C-7377 Amendment 1 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) September 21, 2021
Ms. Corri Vandiver, P. E.

City of Redding
777 Cypress Avenue
Redding, CA 96001
RE: Eastside Road Bridge Replacement Project, Amendment No. 1 Dear Ms. Vandiver:

Dokken Engineering has been preparing the PS& E, environmental documents and right of way acquisition for the Eastside Road over Canyon Hollow Creek bridge replacement. To complete the project, unanticipated tasks and additional coordination on several tasks, is being performed as described below.

Task 6. 0 Hydraulic Study Report
Task 6. 2 Location Hydraulic Study
Dokken has coordinated with Caltrans to obtain approval of the Location Hydraulic Study.

Significant issues coordinated with Caltrans included what the LHS would state for potential damages caused by project, and the need for a CLOMR/LOMR. Multiple conference phone calls and meetings have been conducted to discuss these issues. The LHS has been modified and reviewed by Caltrans several times, and " Additional Information" was appended to explain the project approach.

Task 7. 0 Utility Coordination
Task 7. 1 Utility Coordination
Staged bridge construction has complicated the utility relocation by requiring utility relocation to be staged. In addition, underground utilities have conflicted with foundations, requiring designs to be modified to avoid conflicts. These complications have required additional field meetings and monthly status phone calls at the request of the utility owners and several exhibits to be developed.

Brackets have also been designed to carry the waterline on the bridge.

Task 8.0 Right of Way
Task 8.3 Right of Way Acquisition
Railroad coordination was assumed to consist of a diagnostic meeting leading to a license to enter and construction, as has been obtained on previous projects. However, this approach will not be allowed for the project, with a full Construction and Maintenance ( C& M) agreement anticipated.

This process required significantly more time and effort than anticipated. 110 Blue Ravine Rd, Suite 200, Folsom, CA 95630- 4713 • TO: 916. 858. 0642 • 1, ax: 916. 858. 0643 • wwv .dc kkenin incering. Packet Pg. 228 conl Attachment: C-7377 Amendment 1 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Ms. Corri Vandiver, P. E.

City of Redding
Eastside Road Bridge Replacement Project
Amendment No. 1
September 21, 2021
Task 9. 0 Preparation of Contract Documents
Task 9.3 Prepare Plans, Specifications and Estimate
Eastside Road grade has been raised to provide hydraulic clearance, creating a grade differential between the sidewalk and business ( Redding Transport Lumber) entrance on the east side of the road. An ADA compliant path of travel is needed to account for the grade differential. A full sheet has been added to the plans to account for the retaining walls and concrete pedestrian path needed for access to the building.

Cost Proposal
The not to exceed cost proposal of additional and anticipated hours to complete the above tasks based on time and materials is $ 34, 766. Please see the attached cost proposal and rate schedule for billing rates.

Thank you for this opportunity to present this amendment request to the City. If you have any questions, please contact me.

Sincerely,

DOKKEN ENGINEERING
Tim Osterkamp, P. E.

Project Manager
attach
Packet Pg. 229 Attachment: C-7377 Amendment 1 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) K§#
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Packet Pg. 230 Attachment: C-7377 Amendment 1 (4.11(b)--Approve the Third Amendment to Contract (C-7377))

BILLING RATE SCHEDULE
Effective through December 31, 2022
Professional and supporting staff services will be billed at the following hourly billing rates:

Classification subject to California Prevailing Wage.

Ordinary supplies and equipment are included in the above hourly rates. The following are considered project - specific items and their cost will be added at the following rates:

Construction Vehicle / Truck

CLASSIFICATION

RATE RANGE
PROJECT MANAGEMENT Principal 270.00 to 375.00
Actual
Project Manager 150.00 to 275.00
Actual
QA/ QC Manager 150.00 to 275.00
DESIGN Senior Engineer 150.00 to 270.00
Associate Engineer 110.00 to 170.00
Assistant Engineer 80.00 to 120.00
Senior CAD/ Detailer 80.00 to 180.00
CAD/ Detailer 80.00 to 120.00
Engineering Technician 80.00 to 120.00
ENVIRONMENTAL Environmental Manager 190.00 to 255.00
Senior Environmental Planner 125.00 to 190.00
Associate Environmental Planner 100.00 to 140.00
Environmental Planner 80.00 to 120.00
PUBLIC OUTREACH Community Engagement Director 170.00 to 200.00 Technical Editor 110.00 to 170.00
Graphic Designer 80.00 to 120.00
RIGHT OF WAY Right of Way Manager 125.00 to 195.00
Senior Right of Way Agent / Specialist 130.00 to 195.00 Right of Way Agent / Specialist 120.00 to 155.00
Right of Way Aassistant / GIS Technician 80.00 to 120.00 SURVEYING Professional Land Surveyor 150.00 to 225.00
1 Man Survey Crew 185.00 to 230.00
2 Man Survey Crew 230.00 to 280.00
Office Surveyor 80.00 to 135.00
CONSTRUCTION Construction Manager 150.00 to 200.00
Resident Engineer / Structures Representative 135.00 to 195.00 Office Engineer 115. 00 to 155.00
Inspector - Day 130.00 to 180.00
Inspector - Night / Saturday / OT 155.00 to 215.00
Inspector - Sunday / Holiday 170.00 to 230.00
Classification subject to California Prevailing Wage.

Ordinary supplies and equipment are included in the above hourly rates. The following are considered project - specific items and their cost will be added at the following rates:

Construction Vehicle / Truck 80/ day
Outside Reproduction Actual
Permit Fees / Public Notice Advertisements Actual
Record Search Fees / Mapping Fees / Title Actual
Room and Equipment Rentals Actual
Traffic Control Actual
Utility Potholing Actual
110 BILK Ravine Road, Suite 200, Folsom, C'A 95630-471"1 - Tele: 9-16. 858.064) - Fax: 916.858. 1)( A3 wwcv.dol<kencn int,erittl;.c. t>m Packet Pg. 231 Attachment: C-7377 Amendment 1 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 232
Attachment: C-7377 Amendment 2 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 233
Attachment: C-7377 Amendment 2 (4.11(b)--Approve the Third Amendment to Contract (C-7377)) Packet Pg. 234
Attachment: C-7377 Amendment 2 (4.11(b)--Approve the Third Amendment to Contract (C-7377))

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to Consulting and Professional Services Contract (C-7378) for the Westside Road Bridge at Canyon Hollow Creek Replacement Project:
(1) Approve the Fourth Amendment to the Consulting and Professional Services Contract (C-7378) with Dokken Engineering in the amount of $22,011.95 for a total not to exceed fee of $418,493.67;
(2) Authorize the Mayor, or designee, to execute the Amendment; and (3) Authorize the City Manager, or designee, to approve additional contract amendments in an amount not to exceed $40,000 in total.

Fiscal Impact
The Westside Road Bridge at Canyon Hollow Creek Replacement Project (Project) is estimated to cost approximately $5 million. The project is 88.53 percent funded by the Federal Highway Bridge Program, with the remaining 11.47 percent being funded by the City of Redding’s (City) Transportation Impact Fee fund or the Streets Division Maintenance fund. The total project cost includes a consultant contract with Dokken Engineering (Dokken), to provide bridge design services through construction. This amendment will increase Dokken’s consultant contract by $22,011.95.

See table below for a summary of amended costs to Dokken’s consultant contract (table only includes amendments that adjusted the contract amount).

Original
Contract
Amount
1st Amendment 4th Amendment
Adjustment
Revised
Total Adjustment Revised Total
$363,371.90 $33,109.82 $396,481.72 $22,011.95 $418,493.67 MEETING DATE: March 4, 2025
ITEM NO. 4.11(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(c)--Approve the Fourth Amendment to Consulting and Professional Services Contract (C-7378) for the Westside Road Bridge at Canyon Hollow Creek Replacement Project Michael Webb, Public Works
Director
Packet Pg. 235
Report to Redding City Council February 26, 2025
Re: 4.11(c)--Approve the Fourth Amendment to Contract (C-7378) Page 2 Alternative Action
The City Council (Council) may choose not to authorize the amendment and provide staff with an alternate direction. Without the proposed amendment, Dokken will not be able to complete the bridge design or provide services during the construction phase of the project. This alternative would delay or likely eliminate the replacement of this bridge and jeopardize federal funding.

Background Analysis
In August 2017, an engineering and environmental services contract was executed with Dokken for the project. The project has been proceeding through the various stages of work and the construction documents are almost complete. However, Caltrans has required some additional environmental investigation and reporting that was not included within the original budget. For Dokken to complete the necessary environmental tasks and complete the construction documents for advertising, additional funds are required as requested in this amendment. The amendment has been approved as to form by the City Attorney.

The Westside Road bridge was constructed in 1957 and is currently designated as “functionally obsolete” per Caltrans’ Bridge Inspection Reports. This designation is largely due to the amount of traffic using the bridge and the lack of shoulders and sufficient pedestrian facilities. The project will replace the existing 36-foot-wide, 2-lane bridge, with a 41-foot-wide bridge that includes two, 12-foot travel lanes with 4-foot shoulders, a 6’-2” wide sidewalk with a one-foot wide barrier on the west, and a 1’-9” barrier on the east side. These improvements meet the requirements of both the American Association of State Highway and Transportation Officials and the City.

Environmental Review
This action is not a project as defined by the California Environmental Quality Act (CEQA). As the environmental studies and design progress staff will prepare CEQA documentation for future Council approval.

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

Attachments
C-7378 Amendment 4
Contract C-7378
C-7378 Amendment 1
C-7378 Amendment 2
C-7378 Amendment 3
Packet Pg. 236
Fourth Amendment to Contract (7378)

FOURTH AMENDMENT TO THE

CONSULTING AND PROFESSIONAL SERVICES CONTRACT

WITH FHWA FUNDING/ASSISTANCE BETWEEN
THE CITY OF REDDING AND DOKKEN ENGINEERING, INC. (C-7378) This Fourth Amendment (“Fourth Amendment”) is made and entered into by and between the City of Redding, a municipal corporation, (“City”) and Dokken Engineering, Inc., (“Consultant”) (collectively the “Parties” and individually a “Party”).

RECITALS
WHEREAS, the Parties have previously entered into Consulting and Professional Service Contract on August 31, 2017, for the purpose of Engineering Services for the Westside Road Bridge at Canyon Hollow Creek Replacement Project (C-7378) (collectively referred herein as the “Contract”) and amended this contract on October 28, 2021, (“First Amendment”), November 3, 2022, (“Second Amendment”) and December 23, 2024 (“Third Amendment”) (collectively referred herein as the “Contract”); and WHEREAS, the Parties desire to amend the Contract to (1) add tasks to the Scope of Work (2) increase the contract amount.

NOW, THEREFORE, the Parties for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby agree as follows:

I. Subsection A of Section 1 of the Contract is hereby amended and replaced in its entirety to read as follows:

Subsection 1(A). Subject to the terms and conditions set forth in this Contract, Consultant shall provide to City the services described in Exhibit A, Exhibit A-1, and A-2, attached and incorporated herein. Consultant shall provide the services at the time, place and in the manner specified in Exhibit A, Exhibit A-1, and Exhibit A-2. All Consultant personnel listed as members of the project team in the attached exhibits shall remain on project unless prior approval for the change in personnel has been granted by City’s Contract Administrator.

All other subsections of Section 1 of the Contract shall remain unchanged and in full force and effect.

I. Subsection B of Section 2 of the Contract is hereby amended and replaced in its entirety to read as follows:

Subsection 2(B). In addition to the allowable incurred costs City will pay the Consultant a fixed fee of $23,789.98. The fixed fee is nonadjustable for the term of the Contract, except in the event of a significant change in the scope of work and such adjustment is made by contract amendment.

II. Subsection I of Section 2 of the Contract is hereby amended and replaced in its entirety to read as follows:

Subsection 2(I). In accordance with Exhibit B, Exhibit A-1, and Exhibit B-1 attached and incorporated herein, the total amount payable by City including the fixed fee shall not exceed $418,493.67
Packet Pg. 237 Attachment: C-7378 Amendment 4 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 238 Attachment: C-7378 Amendment 4 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) 110 Blue Ravine Rd, Suite 200, Folsom, CA 95630-4713 • Tel: 916.858.0642 • Fax: 916.858.0643 • www.dokkenengineering.com January 7, 2025
Ms. Corri Vandiver, P.E.

City of Redding
777 Cypress Avenue
Redding, CA 96001
RE: Westside Road Bridge Replacement Project, Amendment No. 4 Dear Ms. Vandiver:

Dokken Engineering has obtained a scope and fee for Geocon Consultants, Inc., to perform the hazardous waste testing required by Caltrans District 2 for the Westside Road over Canyon Hollow Creek bridge replacement. Dokken will oversee this work as an amendment to Task 2.11 for Caltrans Local Assistance Support as described below.

Task 2.0 Environmental Documentation and Permitting
Task 2.11 Caltrans Local Assistance Support
Dokken will oversee Geocon Consultants, Inc., during hazardous waste sampling and preparation of a Phase II Preliminary Site Investigation. The following hazardous waste sources will be sampled and evaluated:
• Sampling and laboratory analysis to determine levels of lead, creosote, pesticides, and petroleum products in soils to be disturbed or excavated during construction activities.
• Test yellow thermoplastic paint and striping as needed. • Assess and test for lead paint on the bridge.
• Conduct an Asbestos Containing Material (ACM) Survey by a Certified Asbestos Consultant (CAC).

A Phase II Preliminary Site Investigation report will be generated documenting the results of the testing and any necessary protective measures recommended for implementation during construction.

Cost Proposal
The not to exceed cost proposal to complete the above tasks based on time and materials is $22,011.95. Please see the attached cost proposal and rate schedule for billing rates.

If you have any questions, please contact me.

Sincerely,

DOKKEN ENGINEERING
Brian Stephenson, P.E.

Project Manager
Exhibit A-2
Packet Pg. 239 Attachment: C-7378 Amendment 4 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) COST PROPOSAL ‐ ESTIMATED HOURS BY TASK

CITY OF REDDING

WESTSIDE ROAD BRIDGE AT CANYON HOLLOW CREEK REPLACEMENT PROJECT AMENDMENT NO. 4
January 7, 2025
Brian Stephenson, PE*
Project Manager
Zach Liptak*
Senior Environmental Planner TOTAL HOURS TOTAL COST
Ewert, Juhrend, Staff
Principal Engineer/ Geologist
Project Engineer/ Geologist/
Scientist
Dennig, Rice, Staff
Certified Asbestos Consultant
(PW)
Field Technician (PW)
Brown, Staff
GIS Specialist
Ingraham, Staff
Word Processing TOTAL HOURS OTHER DIRECT COST TOTAL COST FULLY BURDENED RATE $ 248.78 $ 166.79 $ 226.93 $ 181.55 $ 177.82 $ 156.01 $ 166.42 $ 113.47 TASK 2.0 ENVIRONMENTAL DOCUMENTATION AND PERMITTING 1 3 4 749.16 $ 2 30 7 20 4 2 65 10,105.00 $ $ 21,262.80 69 10,105.00 $ $ 22,011.95 Task 2.11 Caltrans Local Assistance Support 1 3 4 749.16 $ 2 30 7 20 4 2 65 10,105.00 $ $ 21,262.80 69 $10,105.00 22,011.95 $ TOTAL HOURS 1 34 2 30 7 20 4 2 65 69
TOTAL COST $ 500.38 248.78 $ $ 749.16 $ 5,446.39 453.87 $ 1,244.77$ 3,120.17$ 226.93$ 665.67$ $ 10,105.00 $ 21,262.80 $ 10,105.00 $ 22,011.95 GRAND
TOTAL
HOURS
GRAND

TOTAL OTHER

DIRECT COSTS

GRAND TASK DESCRIPTION TOTAL COST
DOKKEN ENGINEERING GEOCON CONSULTANTS, INC.

Exhibit B-1Page 1 of 4
Packet Pg. 240
Attachment: C-7378 Amendment 4 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Note: Mark-Ups are Not Allowed
Consultant: DOKKEN ENGINEERING
Project No. -- Contract No. C-7378 Date
Project Name Westside Road Bridge at Canyon Hollow Creek Replacement Project - Amendment No. 4

DIRECT LABOR
Classification/Title Name Hours Actual Hr Rate* Total
Project Manager Brian Stephenson, PE* 1 88.00 $ $ 88.00 Principal in Charge STAFF 0 $ 125.00 $ -
QA/QC Engineer STAFF 0 $ 115.00 $ -
Senior Engineer STAFF 0 $ 88.00 $ -
Associate Engineer STAFF 0 $ 62.00 $ -
Assistant Engineer STAFF 0 $ 45.00 $ -
Senior CAD Detailer STAFF 0 $ 82.00 $ -
Engineering Technician STAFF 0 $ 45.00 $ -
Senior Environmental Planner Zach Liptak* 3 $ 59.00 $ 177.00 Environmental Manager STAFF 0 $ 90.00 $ -
Principal Planner STAFF 0 $ 85.00 $ -
Senior Environmental Planner STAFF 0 $ 60.00 $ -
Associate Environmental Planner STAFF 0 $ 48.00 $ -
Environmental Planner STAFF 0 $ 39.00 $ -
Environmental Technician STAFF 0 $ 30.00 $ -
Right of Way Manager STAFF 0 $ 79.00 $ -
Senior Right of Way Agent STAFF 0 $ 63.00 $ -
Right of Way Agent STAFF 0 $ 38.00 $ -
Senior Appraiser STAFF 0 $ 58.00 $ -
Appraiser STAFF 0 $ 40.00 $ -
Right of Way Assistant / Appraiser Assistant STAFF 0 $ 31.00 $ - Right of Way Technician / Appraiser Technician STAFF 0 $ 25.00 $ - 4 LABOR COSTS
a) Subtotal Direct Labor Costs $ 265.00
b) Anticipated Salary Increases $0.00
c) TOTAL DIRECT LABOR COSTS [(a) + (b)] $ 265.00

INDIRECT COSTS
d) Fringe Benefits (Rate: 72.00% ) c) Total Fringe Benefits [(c) x (d)] $ 190.80 f) Overhead (Rate: 7.00% ) g) Overhead [(c) x (f)] $ 18.55 h) General and Administrative (Rate: 78.00% ) i) Gen & Admin [(c) x (h)] $ 206.70 j) TOTAL INDIRECT COSTS [(e) + (g) + (i)] $ 416.05
FIXED FEE k) TOTAL FIXED FEE [(c) + (j)] x fixed fee 10% ] $ 68.11 l) CONSULTANT’S OTHER DIRECT COSTS (ODC) – ITEMIZE (Add additional pages if necessary) Quantity Unit Unit Cost Total
i) TOTAL OTHER DIRECT COSTS $ -
m) SUBCONSULTANTS' COSTS (Add additional pages if necessary) • GEOCON CONSULTANTS, INC. $ 21,262.80
m) TOTAL SUBCONSULTANTS' COSTS $ 21,262.80
n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l) + (m)] $ 21,262.80 TOTAL COST [(c) + (j) + (k) + (n)] $ 22,011.95
*Employees will be billed at their actual pay rates within the ranges specified above. When actual rates change, employees will be billed at their updated rate.

NOTES:

3. Anticipated salary increases calculation (page 2) must accompany.

1. Key personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with two asterisks (**). All costs must comply with the Federal cost principles. Subconsultants will provide their own cost proposals.

2. The cost proposal format shall not be amended. Indirect cost rates shall be updated on an annual basis in accordance with the consultant’s annual accounting period and established by a cognizant agency or accepted by Caltrans.

Description of Item
$50.00 - $80.00
$35.00 - $65.00
$25.00 - $35.00

COST PROPOSAL

COST-PLUS-FIXED FEE CONTRACT
(DESIGN, ENGINEERING AND ENVIRONMENTAL STUDIES)
January 7, 2025
Range
$65.00 - $125.00
$65.00 - $125.00
$48.00 - $78.00
$20.00 - $35.00
$36.00 - $56.00
$60.00 - $90.00
$85.00 - $165.00
$85.00 - $165.00
$37.00 - $50.00
$50.00 - $80.00
$35.00 - $65.00
$25.00 - $75.00
$50.00 - $90.00
$50.00 - $90.00
$80.00 - $120.00
$70.00 - $100.00
$33.00 - $43.00
$70.00 - $110.00
$20.00 - $30.00
Prime Consultant Subconsultant 2nd Tier Subconsultant
Exhibit B-1

Packet Pg. 241 Attachment: C-7378 Amendment 4 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Direct Labor Total Hours per Avg 5 Year
Subtotal per Cost Cost Proposal Hourly Contract
Proposal Rate Duration
= $66.25 Year 1 Avg
Hourly Rate
Avg Hourly Rate Proposed Escalation
Year 1 + 5.0% = $69.56 Year 2 Avg Hourly Rate
Year 2 + 5.0% = $73.04 Year 3 Avg Hourly Rate
Year 3 + 5.0% = $76.69 Year 4 Avg Hourly Rate
Year 4 + 5.0% = $80.53 Year 5 Avg Hourly Rate
Estimated % Completed Total Hours per Cost Total Hours per Each Year Proposal Year
Year 1 * 4 = 4 Estimated Hours Year 1
Year 2 * 4 = 0 Estimated Hours Year 2
Year 3 * 4 = 0 Estimated Hours Year 3
Year 4 * 4 = 0 Estimated Hours Year 4
Year 5 * 4 = 0 Estimated Hours Year 5
Total Total = 4
Avg Hourly Rate Estimated hours
(Calculated above) (Calculated Above)
Year 1 * 4 = Estimated Hours Year 1
Year 2 * 0 = Estimated Hours Year 2
Year 3 * 0 = Estimated Hours Year 3
Year 4 * 0 = Estimated Hours Year 4
Year 5 * 0 = Estimated Hours Year 5
Total Direct Labor Cost with Escalation =
Direct Labor Subtotal before Escalation =
Estimated total of Direct Labor Salary Increase = Transfer to Page 1 NOTES:

3. This assumes that one year will be worked at the rate on the cost proposal before salary increases are granted.

4. Calculations for anticipated salary escalation must be provided. $76.69

3. Calculate estimated hours per year (Multiply estimate % each year by total hours) 100.0%

0.0%
$265.00 4

1. Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by proposed escalation %) $66.25
$69.56
$66.25 $265.00
$69.56 $0.00
$73.04 $0.00
$76.69 $0.00
$80.53 $0.00
$265.00
$265.00
$0.00

1. This is not the only way to estimate salary increases. Other methods will be accepted if they clearly indicate the % increase, the # of years of the contract, and a breakdown of the labor to be performed each year.

2. An estimation that is based on direct labor multiplied by salary increase % multiplied by the # of years is not acceptable. (i.e. $250,000 x 2% x 5 yrs = $25,000 is not an acceptable methodology) Cost Per
Year

COST PROPOSAL

COST-PLUS-FIXED FEE CONTRACTS
(CALCULATIONS FOR ANTICIPATED SALARY INCREASES)

1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours)

0.0%

0.0%

0.0%
100.000%

4. Calculate Total Costs including Escalation (Multiply Average Hourly Rate by the number of hours) $73.04
Exhibit B-1

Packet Pg. 242 Attachment: C-7378 Amendment 4 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378))

COST PROPOSAL
Certification of Direct Costs:

I, the undersigned, certify to the best of my knowledge and belief that all direct costs identified on the cost proposal(s) in this contract are actual, reasonable, allowable, and allocable to the contract in accordance with the contract terms and the following requirements:

I. Generally Accepted Accounting Principles (GAAP)

2. Terms and conditions of the contract

3. Ti1Jc 23 United States Code Scc1!on 112 - Letting of Contracts

4. 4 8 Code of Federal Regulo1ions Pan 31 - Contract Cost Principles and Procedures 5 23 Code of Federal Regula1ions Pan I 72 - Procurement, Management, and Administration of Engineering and Design Related Service

6. 48 Code of Federal Regulo1ions Pan 9904 - Cost Accounting Standards Board (when applicable) All costs must be applied consistently and fairly to all contracts. All documentation of compliance must be retained in the project files and be in compliance with applicable federal and state requirements. Costs that are noncompliant with the federal and state requirements are not eligible for reimbursement. Local governments are responsible for applying only cognizant agency approved or Caltrans accepted Indirect Cost Rate(s).

Prime Consultant or Suhconsultant Certifying:

Name**: Title**: President
Signature: Date of Certification (mm/dd/yyyy):

Email**: .com Phone Number: 916-858-0642
Address: I lO Blue Ravine Road. Suite 200, Folsom, CA 95630-4713 •• An individual executive or financial officer of the consultant's or subconsultant's organization at a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

List services the consultant is providing under the proposc<l contract" Professional Engineering, Environmental and Right of Way Services Exhibit B-1

Packet Pg. 243 Attachment: C-7378 Amendment 4 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 244 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 245 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 246 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 247 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 248 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 249 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 250 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 251 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 252 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 253 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 254 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 255 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 256 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 257 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 258 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 259 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 260 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 261 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 262 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 263 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 264 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 265 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 266 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 267 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 268 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 269 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 270 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 271 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 272 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 273 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 274 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 275 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 276 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 277 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 278 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 279 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 280 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 281 Attachment: Contract C-7378 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378))

CITY OF REDDING
7-7;' C',' iliet: ss 6, ueN! i-.. F,. -: Q[) HNG, CA 96001 P. 0. ciG>:::._J() O- 1 f Fl[ f,1j') 1I` Als, CA 9£5049- 607

PAMELA MIZE, CITY CLERK

SHARLENE TIPTON, ASSISTANT CITY CLERK
530.225.4447
530.225.4463 FAX
November 1, 2021
Dokken Engineering
John Klemunes, Jr.
110 Blue Ravine Rd, Suite 200
Folsom, CA 95630
SUBJECT: 1st Amendment to Consulting and Professional Services Contract, C- 7378 Dear John Klemunes, Jr.,
Enclosed please find the fully executed original of the above referenced First Amendment to Consulting and Professional Services Contract by and between the City of Redding and Dokken Engineering for Westside Road Bridge at Canyon Hollow Creek Replacement.

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,
Luisa Klapperich
Executive Assistant, II
Enclosure
cc: McCollum
Vandiver
Grannis
Packet Pg. 282 Attachment: C-7378 Amendment 1 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378))

FIRST AMENDMENT TO
CONSULTING AND PROFESSIONAL SERVICES CONTRACT (C- 7378)

WITH FHWA FUNDING/ASSISTANCE
Westside Road Bridge at Canyon Hollow Creek Replacement Project The Consulting and Professional Services Contract C- 7378 (" Contract") dated August 31, 2017, between the City ofRedding, California (" City") a municipal corporation, and Dokken Engineering (" Consultant") is hereby amended as follows:

SECTION LA is amended to read in its entirety as follows:

A. Subject to the terms and conditions set forth in this Contract, Consultant shall provide to City the services described in Exhibit A and Exhibit A- 1, attached and incorporated herein. Consultant shall provide the services at the time, place and in the manner specified in Exhibit A and Exhibit A- 1. All Consultant personnel listed as members of the project team in the attached exhibits shall remain on project unless prior approval for the change in personnel has been granted by City' s Contract Administrator.

The Exhibit A- 1 attached to this First Amendment is incorporated into the Contract dated August 31, 2017, as Exhibit A- 1.

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

I. The total amount payable by City including fixed fee shall not exceed $ 396,481. 72 SECTION 3. E is amended to read in its entirety as follows:

E. The maximum amount for which the City shall be liable ifthis contract is terminated is 396,481. 72 dollars.

All other terms and conditions of the Contract dated August 31, 2017, shall remain in full force and effect.

The date ofthis Amendment shall be the date that it is signed by the City.

N
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Packet Pg. 283 Attachment: C-7378 Amendment 1 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) IN WITNESS WHEREOF, City and Consultant have executed this Amendment on the days and year set forth below:

CITY OF REDDING
A Municipal Corporation
Dated: C Q , 2021
Barry Tippin, Ci y Manager
Form Approved:

Attest: BARRYK De WALT
City Attorney
PAMELA rI IZE, City Cl r By:

Dokken Engineering
Dated: 2-0 Oc?4ere , 2021
X. fI k/err, rtes Toe
pr'e5rd er, -
Packet Pg. 284 Attachment: C-7378 Amendment 1 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) September 21, 2021
Ms. Corri Vandiver, P. E.

City of Redding
777 Cypress Avenue
Redding, CA 96001
RE: Westside Road Bridge Replacement Project, Amendment No. 1 Dear Ms. Vandiver:

Dokken Engineering has been preparing the, PS& E, environmental documents and right of way acquisition for the Westside Road over Canyon Hollow Creek bridge replacement. To complete the project, unanticipated tasks and additional coordination on several tasks, is being performed as described below.

Task 6. 0 Hydraulic Study Report
Task 6. 2 Location Hydraulic Study
Dokken has coordinated with Caltrans to obtain approval of the Location Hydraulic Study.

Significant issues coordinated with Caltrans included what the LHS would state for potential damages caused by project, and the need for a CLOMR/LOMR. Multiple conference phone calls and meetings have been conducted to discuss these issues. The LHS has been modified and reviewed by Caltrans several times, and " Additional Information" was appended to explain the project approach.

Task 7. 0 Utility Coordination
Task 7. 1 Utility Coordination
Staged bridge construction has complicated the utility relocation by requiring utility relocation to be staged. In addition, underground utilities have conflicted with foundations, requiring designs to be modified to avoid conflicts. These complications have required additional field meetings and monthly status phone calls at the request of the utility owners and several exhibits to be developed.

Brackets have also been designed to carry the waterline on the bridge.

Task 8. 0 Right of Way
Task 8.3 Right of Way Acquisition
Pacific Supply property will be required for construction activities. This will require the relocation of materials stored on this area of the parcel. They are therefore entitled to relocation assistance, which requires right of way activities coordination, documentation, and observation during the relocation. In addition, special traffic and staging considerations are needed for stage construction to maintain deliveries by large semitrucks, requiring the revision of the staging plan. 110 Blue Ravine Rd, Suite: 200, Folsom. CA 95630- 471 3 • Tel: 916. 858. 0642 • Fax: 916. 8.58. 0643 • www.dokkeiiengineering. Packet Pg. 285 com Attachment: C-7378 Amendment 1 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Task 9. 0 Preparation of Contract Documents
Ms. Corri Vandiver, P.E.

City of Redding
Westside Road Bridge Replacement Project
Amendment No. 1
September 21, 2021
Task 9.3 Prepare Plans, Specifications and Estimate
Stage construction has required special consideration for maintaining pedestrian traffic. Plan details have been included to facilitate passing pedestrians across the bridge during construction.

Cost Proposal
The not to exceed cost proposal of additional and anticipated hours to complete the above tasks based on time and materials is $ 33, 110. Please see the attached cost proposal and rate schedule for billing rates.

Thank you for this opportunity to present this amendment request to the City. If you have any questions, please contact me.

Sincerely,

DOKKEN ENGINEERING
Tim Osterkamp, P.E.

Project Manager
attach
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Packet Pg. 287 Attachment: C-7378 Amendment 1 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378))

BILLING RATE SCHEDULE
Effective through December 31, 2022
Professional and supporting staff services will be billed at the following hourly billing rates:

Classification subject to California Prevailing Wage.

Ordinary supplies and equipment are included in the above hourly rates. The following are considered project - specific items and their cost will be added at the following rates:

Construction Vehicle / Truck

CLASSIFICATION

RATE RANGE
PROJECT MANAGEMENT Principal 270.00 to 375.00
Actual
Project Manager 150.00 to 275.00
Actual
QA/ QC Manager 150.00 to 275.00
DESIGN Senior Engineer 150.00 to 270.00
Associate Engineer 110.00 to 170.00
Assistant Engineer 80.00 to 120.00
Senior CAD/ Detailer 80.00 to 180.00
CAD/ Detailer 80.00 to 120.00
Engineering Technician 80.00 to 120.00
ENVIRONMENTAL Environmental Manager 190.00 to 255.00
Senior Environmental Planner 125. 00 to 190.00
Associate Environmental Planner 100.00 to 140.00
Environmental Planner 80.00 to 120.00
PUBLIC OUTREACH Community Engagement Director 170.00 to 200.00 Technical Editor 110.00 to 170.00
Graphic Designer 80.00 to 120.00
RIGHT OF WAY Right of Way Manager 125. 00 to 195. 00
Senior Right of Way Agent / Specialist 130.00 to 195. 00 Right of Way Agent / Specialist 120.00 to 155.00
Right of Way Aassistant / GIS Technician 80.00 to 120.00 SURVEYING Professional Land Surveyor 150.00 to 225.00
1 Man Survey Crew 185. 00 to 230.00
2 Man Survey Crew 230.00 to 280.00
Office Surveyor 80.00 to 135.00
CONSTRUCTION Construction Manager 150.00 to 200.00
Resident Engineer / Structures Representative 135.00 to 195. 00 Office Engineer 115. 00 to 155.00
Inspector - Day 130.00 to 180.00
Inspector - Night / Saturday / OT 155.00 to 215.00
Inspector - Sunday / Holiday 170.00 to 230.00
Classification subject to California Prevailing Wage.

Ordinary supplies and equipment are included in the above hourly rates. The following are considered project - specific items and their cost will be added at the following rates:

Construction Vehicle / Truck 80/ day
Outside Reproduction Actual
Permit Fees / Public Notice Advertisements Actual
Record Search Fees / Mapping Fees / Title Actual
Room and Equipment Rentals Actual
Traffic Control Actual
Utility Potholing Actual
110 Blue Ravine Road, Suile 200, Folsom, CA 9 630-471.3 • Tele: 916. 858.0(' 412 • Fax: 916.858.0643 wwctir. ic ickenrn; it7c ea ins . cc>m Packet Pg. 288 Attachment: C-7378 Amendment 1 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 289
Attachment: C-7378 Amendment 2 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 290
Attachment: C-7378 Amendment 2 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 291
Attachment: C-7378 Amendment 2 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 292
Attachment: C-7378 Amendment 3 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 293
Attachment: C-7378 Amendment 3 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 294
Attachment: C-7378 Amendment 3 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378)) Packet Pg. 295
Attachment: C-7378 Amendment 3 (4.11(c)--Approve the Fourth Amendment to Contract (C-7378))

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to Consulting and Professional Services Contract (C-7518) for the Westside Sewer Interceptor Phase 3 Project:
(1) Approve the Fifth Amendment to the Consulting and Professional Services Contract (C7518) with Water Works Engineers, LLC in the amount of $148,709 for a total not to exceed fee of $953,265;
(2) Authorize the Mayor, or designee, to execute the Amendment; and (3) Authorize the City Manager, or designee, to approve additional contract amendments in an amount not to exceed $75,000 in total.

Fiscal Impact
The Westside Sewer Interceptor Phase 3 Project (Project) is estimated to cost approximately $10 million. The project is completely funded by the Wastewater Utility fund. The total project cost includes a consultant contract with Water Works Engineers, LLC (Water Works) to provide design services through construction. This amendment will increase Water Works’ consultant contract by $148,709.

See table below for a summary of amended costs to Water Works consultant contract (table only includes amendments that adjusted the contract amount).

Original
Contract
Amount
1 st Amend 2nd Amend 3rd Amend 5th Amend
Adjustment
Revised
Total Adjustment
Revised
Total Adjustment
Revised
Total Adjustment
Revised
Total
$651,127 $53,845 $704,972 $52,605 $757,577 $46,979 $804,556 $148,709 $953,265 MEETING DATE: March 4, 2025
ITEM NO. 4.11(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(d)--Approve the Fifth Amendment to Consulting and Professional Services Contract (C-7518) for the Westside Sewer Interceptor Phase 3 Project Michael Webb, Public Works
Director
Packet Pg. 296
Report to Redding City Council February 26, 2025
Re: 4.11(d)--Approve the Fifth Amendment to Contract (C-7518) Page 2 Alternative Action
The City Council (Council) may choose not to authorize the amendment and provide staff with an alternate direction. Without the proposed amendment, Water Works will not be able to complete the design of the project. This alternative would delay or potentially eliminate the construction of the final phase of the Westside Interceptor.

Background Analysis
In December 2017, an engineering and environmental services contract was executed with Water Works for the project. Work began on the design and permitting of the project in early 2018, and the overall design has progressed to nearly the 90 percent level. In order to better accommodate for the future needs of the City, additional considerations have been included over the course of the design. Some of these considerations include the addition of a screening facility upstream of the treatment plant pump station to remove large items and debris that could damage pumps; provisions for future parallel potable water facilities at the Clear Creek Crossing; and modified maintenance structure alternatives to promote constructability and reduced inflow and infiltration. For Water Works to complete the project design and provide the services originally outlined in the contract, as well as the considerations mentioned above, additional funds are required as requested in this amendment. The amendment has been approved as to form by the City Attorney.

The Westside Sewer Interceptor Phase 3 Project is the last phase of the project, originally developed in 1999 to accommodate the future development capacity of the City of Redding (City). After many years of forecasting and planning to convey flow from the developable north and western portions of the City to the Clear Creek Wastewater Treatment Plant (CCWWTP), it was determined that the existing sewer interceptor (1966 Sanitary Sewer Improvements) did not have available capacity. Phase 1 of the Westside Sewer Interceptor was constructed in 2003 and created an additional interceptor alignment connecting Locust Street to Girvan Road near Cascade Park. In 2011, Phase 2 was constructed, traversing from Butte Street south along Continental Street and Garden Avenue, connecting to Phase 1 near the intersection of Locust Street and Garden Avenue. Phase 2 diverted flow from western Redding into the new alignment, therefore, freeing up capacity in the original interceptor for development in northwestern Redding which flows through the North Market Street Lift Station. Phase 3 will complete this system connecting the new alignment which ended at Girvan Road, with a parallel interceptor directly to the influent pump station of the CCWWTP. The proposed alignment will be a 42- inch inside diameter pipe and is sized to meet the future wastewater conveyance demands by operating in parallel with the original sewer interceptor.

Environmental Review
This action is not a project as defined by the California Environmental Quality Act (CEQA), and no further action is required. On February 15, 2022, the Council adopted the Mitigated Negative Declaration and Mitigation Monitoring Program, and approved the Westside Sewer Interceptor Phase 3 Project, thereby satisfying the requirements of CEQA.

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

Packet Pg. 297
Report to Redding City Council February 26, 2025
Re: 4.11(d)--Approve the Fifth Amendment to Contract (C-7518) Page 3 Attachments
C-7518 Amendment 5
Contract C-7518
C-7518 Amendment 1
C-7518 Amendment 2
C-7518 Amendment 3
C-7518 Amendment 4
Prior Staff Report 2-15-2022
Packet Pg. 298
Packet Pg. 299
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Attachment: C-7518 Amendment 4 (4.11(d)--Approve the Fifth Amendment to Contract (C-7518))

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions regarding the Westside Sewer Interceptor Phase Three Project for the City of Redding Wastewater Utility:
(1) Adopt Mitigated Negative Declaration, including the Mitigation Monitoring Program; (2) Approve Westside Sewer Interceptor Phase Three Project as described; and (3) Direct staff to file a Notice of Determination with the Shasta County Clerk’s Office and the State Clearinghouse, thereby satisfying requirements of the California Environmental Quality Act (CEQA Guidelines §15074).

Fiscal Impact
Approval of the Westside Sewer Interceptor Phase Three (3) Project (Project) along with adoption of the Mitigated Negative Declaration (MND) and the Mitigation Monitoring Program (MMP) allows the project to move toward the final design and construction phases. There is no fiscal impact as a direct result of adopting the MND, MMP, and approving the project.

The project is estimated to cost approximately $8,000,000 and will be funded through the Wastewater Utility fund.

Alternative Action
The City Council (Council) could choose to not adopt the MND and the MMP, and not approve the Project as described. Without approval, the project would not be able to proceed as a City of Redding (City) project, as it would not be in compliance with the California Environmental Quality Act.

MEETING DATE: February 15, 2022
ITEM NO. 4.11(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(b)--Adoption of Westside Sewer Interceptor Phase Three (3) Project, Mitigated Negative Declaration and the Mitigation Monitoring Program Chuck Aukland, Public
Works Director
Packet Pg. 384 Attachment: Prior Staff Report 2-15-2022 (4.11(d)--Approve the Fifth Amendment to Contract (C-7518)) Report to Redding City Council February 9, 2022
Re: 4.11(b)--Westside Sewer Interceptor Phase 3 Project Page 2 Background/Analysis
The City of Redding (City) is proposing to construct a new 48-inch diameter trunk sewer pipeline to increase the wastewater collection system hydraulic capacity. The existing 42-inch diameter pipeline conveys wastewater from a diversion structure near Girvan Road to the Clear Creek Wastewater Treatment Plant (CCWWTP). The proposed new pipeline would provide additional capacity to accommodate both existing and planned wastewater flows. The additional capacity would also significantly reduce the risk of sanitary sewer overflows during wet weather events.

The new 4,200-foot pipeline would begin at the existing diversion structure located at Girvan Road and terminate at the CCWWTP’s existing headworks pump station wet well along the south bank of Clear Creek. The pipeline would be sized to provide a maximum design flow of 30 million gallons per day to serve the existing and planned development in the area. The pipeline includes a 20-foot-wide by 20-foot-long by 20-foot-deep concrete junction structure at the north end, seven maintenance access points placed approximately every 600 feet along the alignment, and a second 20-foot-wide by 20-foot-long by 16-foot-deep concrete junction structure approximately 100 feet north of the Clear Creek crossing. One new maintenance access point would be constructed on the existing 42-inch pipe to improve inspection and maintenance access (located near the end of Garnet Court). Two additional new maintenance access points would be constructed to connect existing sewer lines that serve nearby properties to both the existing and new pipelines. Construction is scheduled to start in the summer of 2023, the project is anticipated to take approximately 24 months.

An Initial Study (IS) was prepared to satisfy the requirements of the California Environmental Quality Act (CEQA). It describes why the project is proposed and the potential impacts to the existing environment. The IS shows that the proposed project could have a significant effect on biological resources, but with implementation of mitigation measures, those impacts will be reduced to a level considered less than significant. The mitigation measures and conservation measures to be implemented are common practices and include, but are not limited to, biological pre-construction surveys, in-water work windows, water quality monitoring, compensatory mitigation for vegetation loss, impact minimization, exclusionary fencing, and erosion control.

Based on the conclusions made in the IS, a Mitigated Negative Declaration (MND) was prepared. The MND describes the project, including mitigation measures, and makes the determination that there will be no significant effect on the environment provided that the defined mitigation measures are implemented as part of the project. In addition, a Mitigation and Monitoring Program (MMP) has been written and incorporated into the MND (CEQA Section 21081.6). The MMP will be used by City staff, contractors, agencies, and monitoring personnel during and after the project to ensure effective implementation of the adopted mitigation measures outlined in the MND.

The IS/MND/MMP documents were sent to the State Clearinghouse for a 30-day public review period and distribution to pertinent state agencies. They were sent to local resource agencies, the Shasta County Clerk, and posted on the Public Works Department website. A public notice was also sent to landowners in the vicinity of the project and posted in the local newspaper. One comment letter was received during the public comment period. A response to the comment letter has been prepared and is attached to the final MND.

Packet Pg. 385 Attachment: Prior Staff Report 2-15-2022 (4.11(d)--Approve the Fifth Amendment to Contract (C-7518)) Report to Redding City Council February 9, 2022
Re: 4.11(b)--Westside Sewer Interceptor Phase 3 Project Page 3 The City of Redding is the lead agency for the project pursuant to CEQA. As the lead CEQA agency, the Council is authorized to adopt the MND per Redding Municipal Code Section §18.24.070.E and state law. Upon adoption of the MND and approval of the project by the Council, a Notice of Determination will be filed with the Shasta County Clerk’s Office and the State Clearinghouse, completing the environmental review process. The IS/MND is available in the City Clerk’s office for review and is currently available online at https://www.cityofredding.org/departments/public-works/environmental-management.

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

Attachments
Location Map
Mitigated Negative Declaration Westside Sewer Interceptor Phase 3 (available online) Response to Public Comments (available online)
Packet Pg. 386 Attachment: Prior Staff Report 2-15-2022 (4.11(d)--Approve the Fifth Amendment to Contract (C-7518))

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to the Summary Vacation of the Mistletoe Lane Cul-de-Sac and Public Service Easement (A-2024-01530):
(1) Adopt Resolution summarily vacating the Mistletoe Lane Cul-de-Sac and a Public Service Easement within the areas shown on Parcel Map No. LS 10-91 filed in Book 28 of Parcel Maps at Page 80, Shasta County Records described in Exhibit A and depicted in Exhibit B;
(2) Find the action consistent with the General Plan; and (3) Find the action categorically exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15035 - Minor Alterations in Land Use Limitations.

Fiscal Impact
Adopting the resolution will have no fiscal impact to the City of Redding (City). All costs associated with the processing of this project are paid by the applicant. The portions of the vacated right-of-way will revert to the abutting parcels as fee owners.

Alternative Action
The City Council (Council) may choose not to adopt the resolution and the City will retain this portion of Mistletoe Lane.

Background/Analysis
The owner of Parcel 2 of Parcel Map No. LS 10-91 (Parcel Map) has requested the vacation of a proposed cul-de-sac street dedication and 5-foot-wide Public Service Easement (PSE). This area lies east of Victor Avenue and was dedicated by the filing of said Parcel Map and is described in the attached Exhibit A and depicted in Exhibit B. At the time of the filing of said Parcel Map in MEETING DATE: March 4, 2025
ITEM NO. 4.11(e)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(e)--Summary Vacation the Mistletoe Lane Cul-de-Sac and Public Service Easement (A-2024-01530)
Michael Webb, Public Works
Director
Packet Pg. 387
Report to Redding City Council February 26, 2025
Re: 4.11(e)--Summary Vacation of Mistletoe Ln Cul-de-Sac & Public Service Easement Page 2 1991, Mistletoe Lane was conditioned to be abandoned when alternate street access was provided to Parcels dependent on Mistletoe Lane. However, subsequent development has necessitated the continuance of Mistletoe Lane and the cul-de-sac is no longer necessary. No street improvements have been constructed and no utilities have been installed within the area proposed to be vacated. The request was coordinated with various City departments and there is no foreseeable need for the roadway and utility easement.

The cul-de-sac may be determined to be excess and eligible for summary vacation per Streets and Highways Code 8334. The PSE may be determined to be excess and eligible for summary vacation per Streets and Highways Code 8333. These summary vacations are consistent with the General Plan as they will reduce maintenance needs of public streets and facilities, not preclude uses consistent with current zoning, and encourage design consistent with the surroundings.

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

Environmental Review
Staff has reviewed the action and determined that the activity is categorically exempt from environmental review under the California Environmental Quality Act Guidelines, per Section 15305 (Minor Alterations in Land Use Limitations). The Class 5 exemption allows for minor alterations to land use limitations, as long as the average slope on site is less than 20 percent and would not result in any changes in land use or density. This action will not result in the creation of any new parcels, nor will it change land use density. The existing General Plan and Zoning land use designations would remain as they currently exist and the average slope does not exceed 20 percent. In addition, the project area does not have significant values for wildlife habitat or other environmental resources. The action has no potential to have a significant impact on the environment.

Council Priority/City Manager Goals
• This agenda item is a routine operational item.
c: Pacific Gas and Electric Company, Land Rights Services AT&T California
Charter Communications
Attachments
^Resolution
^Exhibit A
^Exhibit B
^Location Map
^Notice of Exemption
Packet Pg. 388
Recording Requested by
City of Redding
Please Return to
City Clerk
P.O. Box 496701
Redding, CA 96049-6071
Documentary Transfer Tax: None
City of Redding EXEMPT
Rev. & Tax C.A. §11922

NO FEE-CITY BUSINESS
Gov. Code §6103
APN 067-023-031
RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING SUMMARILY VACATING THE CITY’S INTEREST IN A STREET
DEDICATION AND PUBLIC SERVICE EASEMENT WITHIN PARCEL 2 OF PARCEL MAP NO. LS 10-91 (ABANDONMENT APPLICATION A-2024-01530) WHEREAS:

A. The Street Dedication and the Public Service Easement being considered for summary vacation were acquired by dedication by Parcel Map No. 10-91 filed in Book 28 of Parcel Maps at Page 80, Shasta County Records and is described in Exhibit “A” and shown on Exhibit “B” attached and made a part hereof by reference. The owner of the adjacent parcels has asked that the City vacate the Street Dedication and the Public Service Easement.

B. The Street Dedication is no longer required for street or highway purposes. The Public Service Easement has not been used for the purpose for which it was dedicated and there are no public facilities located within the Easement.

NOW, THEREFORE, THE CITY COUNCIL DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:

1. The recitals set forth above are true, correct and are hereby adopted as findings of fact.

2. Pursuant to Streets and Highways Code 8334(a), the City Council determines Street Dedication to be excess and is unnecessary for present or prospective public street use.

3. Pursuant to Streets and Highways Code 8333(c), the City Council determines the Public Service Easement to be excess.

Packet Pg. 389 Attachment: ^Resolution (4.11(e)--Summary Vacation of Mistletoe Ln Cul-de-Sac & Public Service Easement)

4. The City Council approves the request to summarily vacate the Street Dedication and the Public Service Easement with Parcel 2 of Parcel Map No. 10-91 filed in Book 28 of Parcel Maps at Page 80, Shasta County Records, as described in Exhibit “A” and shown on the attached Exhibit “B.”

5. The vacation of the Street Easement and the Public Service Easement is consistent with the General Plan. This action will: reduce maintenance needs of public streets and facilities; will not preclude uses consistent with current zoning; and encourages design compatible with its surroundings.

6. The vacation of the Street Easement and the Public Service Easement qualifies as Categorically Exempt from environment review under the California Environmental Quality Act Guidelines Section 15305 – Minor Alterations in Land Use Limitations. No changes in land use or density will occur and areas affected contain an average slope of less than 20%. There is no possibility that this action will have a significant impact on the environment.

7. The City Clerk is directed to cause a certified copy of this Resolution of Vacation, attested by the Clerk under seal, to be recorded in the Office of the Shasta County Assessor/Recorder.

I HEREBY CERTIFY, that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 4th day of March, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

_____________________________________
JACK MUNNS, Mayor
ATTEST: APPROVED AS TO FORM:
_________________________________ _____________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney Packet Pg. 390 Attachment: ^Resolution (4.11(e)--Summary Vacation of Mistletoe Ln Cul-de-Sac & Public Service Easement)

EXHIBIT A
The Street area and 5’ wide Public Service Easement dedicated to the City within Parcel 2 of Parcel Map No. LS 10-91 filed on July 10, 1991 in Book 28 of Parcel Maps at Page 80, Shasta County Records.

Packet Pg. 391 Attachment: ^Exhibit A (4.11(e)--Summary Vacation of Mistletoe Ln Cul-de-Sac & Public Service Easement) Packet Pg. 392 Attachment: ^Exhibit B (4.11(e)--Summary Vacation of Mistletoe Ln Cul-de-Sac & Public Service Easement) Packet Pg. 393
Attachment: ^Location Map (4.11(e)--Summary Vacation of Mistletoe Ln Cul-de-Sac & Public Service Easement)

NOTICE OF EXEMPTION APPENDIX I
TO: ☐ Office of Planning and Research FROM: City of Redding P.O. Box 3044, 1400 Tenth Street, Room 121 Development Services Department Sacramento, CA 95814 777 Cypress Avenue
Redding, CA 96001
☒ County Clerk
County of Shasta
P.O. Box 990880, 1643 Market Street
Redding, CA 96099-0880
Project Title: Summary vacation of a cul-de-sac portion and Public Service Easement on Mistletoe Lane.

Application Number: A-2024-01530
Project Location – Specific: 1855 Mistletoe Lane, Redding, CA 96002 Project Location – City: Redding Project Location – County: Shasta Description of Project: The property owner proposes the abandonment of the public service easement and cul-de-sac street dedication along property frontage on Mistletoe Lane. There are no significant cumulative impacts.

Name of Public Agency Approving Project: City of Redding Name of Person or Agency Carrying Out Project: City of Redding Exempt Status: (check one)
☐ Ministerial [Section 21080(b)(1); 15268]
☐ Declared Emergency [Section 21080(b)(3); 15269(a)]
☐ Emergency Project [Section 21080(b)(4); 15269(b)(c)]
☒ Categorical Exemption. Type and section number: § 15305, Minor Alteration in Land Use Limitation
☐ Statutory Exemptions. State code number:
☐ Common Sense Exemption: CEQA Guidelines [Section 15061(b)(3)] Reasons why project is exempt: The easement being abandoned is not required to provide utilities to the adjacent lot as it is currently configured. The property is not located in an area of statewide, regional, or local concern. There are no known sensitive resources such as wetlands, threatened or endangered species or their habitats, cultural resources, or sensitive vegetation communities that will be impacted. The project has no potential to have a significant effect on the environment.

Lead Agency Contact Person: David Schlegel Telephone: (530) 225-4036 If Filed by Applicant:

1. Attach certified document of exemption finding.

2. Has a notice of exemption been filed by the public agency approving the project? ☐Yes ☐No Signature: Date: 02/18/2025
Title: Senior Planner
☒ Signed by Lead Agency Date received for filing at OPR:
☐ Signed by Applicant
Packet Pg. 394 Attachment: ^Notice of Exemption (4.11(e)--Summary Vacation of Mistletoe Ln Cul-de-Sac & Public Service Easement)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept update regarding the emergency work for the South Street Water Main at Railroad Emergency Replacement Project; and, pursuant to Public Contract Code Section 22050(c)(1), make a determination by a four-fifths vote that there is a need to continue the emergency work.

Fiscal Impact
Project costs will be funded by the City of Redding’s Water Utility Division’s Fiscal Year 2024- 2025 budget that has sufficient funds appropriated to complete the South Street Water Main at Railroad Emergency Replacement Project (Project). The estimated total project cost is $1,040,000.

Alternative Action
The City Council (Council) may choose not to accept the project status report and provide further direction to staff.

Background/Analysis
On February 4, 2025, Council adopted an emergency resolution for the project and authorized the negotiation of emergency contracts. Staff is currently working to develop a design solution and obtain the necessary Union Pacific Railroad (UPRR) encroachment permit. On February 14, 2025, staff solicited RTA Construction, Inc. (RTA) to discuss the proposed project scope and their availability. RTA was solicited based on their technical knowledge of utility construction and previous performance on projects of similar size and scope. RTA is currently contacting various jack and bore subcontractors to discuss their availability and potential costs as this scope of work is specialized and critical for the project’s success. Staff is currently negotiating a construction contract with RTA. Staff has also applied for and is in discussions with UPRR for the encroachment permit necessary to facilitate the work within UPRR’s right-of-way.

MEETING DATE: March 4, 2025
ITEM NO. 4.11(f)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(f)-Update Regarding the Emergency Work for the South Street Water Main at Railroad Emergency Replacement Project.

Michael Webb, Public Works
Director
Packet Pg. 395
Report to Redding City Council February 26, 2025
Re: 4.11(f)--Update on Emergency Repair to South Street Water Main ER Project Page 2 Staff anticipates construction starting in early April 2025, depending on execution of a construction contract, material availability, and obtaining necessary inter agency permits.

Updates will be provided to Council as the project progresses.

The project proposes to relocate the failed section of 12-inch cast-iron water main and corrugated steel pipe casing in South Street that is beneath the UPRR tracks by jack and boring a new steel pipe casing and installing a 16-inch ductile iron pipe. Work also includes water main tie-in fittings, isolation valves, asphalt concrete pavement, curb, gutter, sidewalk and other miscellaneous items.

Environmental Review
This action is not a project as defined by the California Environmental Quality Act (CEQA) and no further action is required. On February 4, 2025, the Council determined that the South Street Water Main at Railroad Emergency Replacement Project is statutorily exempt from environmental review under the CEQA Guidelines, per Section 15269(b)-Emergency Projects.

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
Previous Staff Report
Packet Pg. 396

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to the South Street Water Main at Railroad Emergency Replacement Project (Project):
(1) Adopt Resolution, by not less than four-fifths affirmative vote, authorizing the City Manager to negotiate and award an emergency public works contract for the project in an amount not to exceed $630,000;
(2) Authorize the City Manager, or designee, to approve construction contingency amounts up to a total of $180,000;
(3) Approve $95,000 to cover costs for project development costs; (4) Approve $135,000 to cover costs for construction management and inspection fees; and (5) Find that the Project is exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15269(b) – Emergency Projects.

Fiscal Impact
The South Street Water Main at Railroad Emergency Replacement Project (Project) is being funded by the City of Redding’s (City) Water Utility. The Water Utility’s Fiscal Year 2024-2025 budget has sufficient funds appropriated to complete the project. The following table provides a summary of estimated costs for the project:

Cost Summary
Item Estimated Cost
Project Development Costs $95,000
Construction Contract + Contingency $810,000
Contract Administration, Inspection, Testing $135,000
Total Project Costs $1,040,000
MEETING DATE: February 4, 2025
ITEM NO. 9.11(g)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.11(g)--Consider declaring an emergency for the South Street Water Main at Railroad Emergency Replacement Project.

Michael Webb, Public Works
Director

APPROVED
Packet Pg. 397 Attachment: Previous Staff Report (4.11(f)--Update on Emergency Repair to South Street Water Main ER Project) Report to Redding City Council January 29, 2025
Re: 9.11(g)--Declare Emergency for the South Street Water Main ER Project Page 2 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.

Alternative Action
The City Council (Council) may choose not to authorize the award of an emergency contract, and instead have staff prepare plans and specifications to award a contract to the low bidder in accordance with state and local contracting procedures. This would result in the broken water main remaining out of service through the summer of 2025 and during peak water demands which could significantly reduce reliability of the water system for City customers and fire flows in the area. Or, the Council could provide alterative direction to staff.

Background/Analysis
On December 9, 2024, a 12-inch, cast-iron, water main in South Street broke beneath the Union Pacific Railroad (UPRR) tracks. The corrugated steel casing under the UPRR tracks that surrounds the water main also broke, resulting in erosion and voids beneath the railroad tracks.

City crews quickly made temporary repairs to close water valves and isolate the broken section of water main. They also backfilled voids in the soil caused by the break and coordinated with UPRR for repair of the railroad tracks in the area. The railroad tracks were quickly restored to normal operation, but because the pipeline break was beneath the tracks and the steel casing failed, City crews were unable to repair the water main and this segment of piping remains out of service.

Since both the water main and the casing failed beneath the railroad tracks, simply pulling a new pipe through the existing casing is not feasible. To adequately repair this main, staff intends to design for a jack and bore installation of a new steel casing and ductile iron water main, sized to convey peak flows in accordance with the City’s design standards, across the UPRR right-of-way for connection to the existing main piping on both sides.

Computer modeling of the City’s water system indicates that there should not be issues with the South Street water main remaining out of service through the winter and early spring, when water demands are relatively low. However, during the summer months and peak water demands, this main conveys significant flows eastward and its outage would have substantial impacts. If it remains out of service through the summer then peak flows would need to be conveyed through alternate routes and water mains, which will increase flow velocities, stress, and potential for surges and damage to other aging water mains in the downtown area.

If the South Street main remains out of service through the summer months, then there are several areas where increased flow velocities and potential for further pipeline damage are a concern. One, in particular, is another 12-inch water main crossing the UPRR tracks along Shasta Street, approximately one-half-mile north of the South Street water main break. The Shasta Street water main was installed in 1958 and is a cast iron pipe, similar to the South Street main that broke. The City has plans to replace the Shasta Street main with a separate capital improvement project in the near future because of concerns with its reliability. Recently, on June 19, 2024, it also had a break, just three blocks west of its railroad crossing. With the South Street water main out of service, flows through the Shasta Street main would increase to velocities above the maximum allowed by many agencies and recommended maximum in the City’s Water Master Plan. The increased flow velocities would lead to additional stress and potential for surges in the Shasta Street main that will increase the risk of additional failures.

APPROVED
Packet Pg. 398 Attachment: Previous Staff Report (4.11(f)--Update on Emergency Repair to South Street Water Main ER Project) Report to Redding City Council January 29, 2025
Re: 9.11(g)--Declare Emergency for the South Street Water Main ER Project Page 3 The South Street water main provides critical redundancy for the Shasta Street main and other water mains in the area. While the South Street main remains out of service, this critical redundancy is not available. The lack of redundancy, combined with the increased velocities and stress to other aging mains where there are already concerns of reliability, including in Shasta Street, put the City at a much higher risk for additional water main failures that would have major impacts on the water system.

To provide necessary redundancy in the water system and mitigate the risks of additional pipeline breaks, disruptions in service, potential damage to infrastructure and property, and a loss of available storage and fire flow, staff recommends that the South Street Main be repaired as soon as possible and before the high water demands in the summer of 2025. Staff has considered proceeding with typical design and bid process for a capital improvement project; however, this process would likely require a minimum of seven months in order to prepare the bid package, obtain UPRR permits, advertise for bids, and award a contract for construction. At that point, the contractor would still need to order and procure materials, which would result in the construction work not starting until late 2025. This timeline is substandard and the repairs would not be completed prior to the high impact and risk period during the summer.

The broken water main presents potential impacts to public health, property and safety.

Therefore, staff proposes an emergency contract to repair and replace the broken water main in South Street beneath the UPRR crossing. If approved, staff estimates the construction will be complete in May 2025, before the high water demands in the summer and greatest risks occur.

It is noted that the Public Contract Code (PCC) (Section 20168) provides that the local government’s legislative body may pass a resolution by a four-fifths vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health and property. Further, the PCC (Section 22050) provides that “in case of emergency, a public agency, pursuant to a four-fifths vote of its governing body, may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes without giving notice for bids to let contracts.”
It is in the public’s interest and necessity to repair the broken water main in South Street to ensure reliability of the water system, protection of property and the public’s health and safety.

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

Environmental Review
Staff has determined that the project is exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15269(b) – Emergency Projects. Section 15269(b) includes emergency repairs to publicly and privately-owned service facilities necessary to maintain service essential to the public health, safety, or welfare. The emergency repair and replacement will occur in areas of previous disturbance, and the repairs are necessary to maintain service essential to public health.

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.”

APPROVED
Packet Pg. 399 Attachment: Previous Staff Report (4.11(f)--Update on Emergency Repair to South Street Water Main ER Project) Report to Redding City Council January 29, 2025
Re: 9.11(g)--Declare Emergency for the South Street Water Main ER Project Page 4 Attachments
^Resolution
^Location Map
^Notice of Exemption

APPROVED
Packet Pg. 400 Attachment: Previous Staff Report (4.11(f)--Update on Emergency Repair to South Street Water Main ER Project) RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

REDDING TO DECLARE AN EMERGNCY AND AUTHORIZE THE

CITY MANAGER TO AWARD EMERGENCY CONTRACTS FOR THE

SOUTH STREET WATER MAIN AT RAILROAD EMERGENCY

REPLACEMENT PROJECT
WHEREAS, Public Contract Code section 22050 and Redding Municipal Code 4.22.120(A) provide that, in the case of emergency, a public agency may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes without giving notice for bids to let contracts; and
WHEREAS, on December 9, 2024, a 12-inch water main in South Street broke beneath the Union Pacific Railroad (UPRR) tracks; and
WHEREAS, City crews isolated the broken segment of piping but are unable to repair it, due to its location under the UPRR tracks, and the pipe remains out of service; and WHEREAS, proper water infrastructure is critical for public health, safety, and fire protection; and
WHEREAS, if not repaired before high water demands during the summer months, there will be a lack of redundancy in the water system that will result in higher flow velocities, stress, and potential for surges in other water mains, increasing potential for additional pipeline failures; and WHEREAS, additional pipeline failures would result in disruptions in service, potential damage to associated public and adjacent private infrastructure, and a significant decrease in available water storage and fire flows; and
WHEREAS, a competitive solicitation for bids is anticipated to require at least seven (7) months to design, advertise for bids, and award a contract for construction, after which construction would not occur until the autumn of 2025, failing to complete the necessary repairs until after the summer and highest risk period for additional pipeline damage or failures, water pressure losses, and deficient fire flows; and
WHEREAS, continued outage of the water main will significantly reduce the reliability of water systems to provide adequate pressures and fire flows, which threatens the safety of the public and properties in the downtown area; and
WHEREAS, the continued isolation and outage of the broken water main in South Street to accommodate the delay necessary for the competitive bidding process would not mitigate or eliminate the threat to persons and property;

APPROVED
Packet Pg. 401 Attachment: Previous Staff Report (4.11(f)--Update on Emergency Repair to South Street Water Main ER Project) NOW, THEREFORE, BE IT RESOLVED THAT:

1. The City Council of the City of Redding finds that the recitals set forth above are true and correct and are hereby adopted as findings of fact.

2. The public interest and necessity require the immediate expenditure of public money to restore the water conveyance system to full capacity, protect the public health, safety and welfare, and prevent further damage to the water system.

3. The City Council of the City of Redding therefore declares an emergency and authorizes the City Manager to award emergency contracts to repair the broken water main in South Street at the UPRR crossing.

4. The action authorized herein shall be reviewed by the City Council at all regular meetings of the Council until such time as the City Council determines that the emergency is abated.

I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 4th day of February, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
____________________________________
JACK MUNNS, Mayor
ATTEST: FORM APPROVED:
________________________________ ____________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney

APPROVED
Packet Pg. 402 Attachment: Previous Staff Report (4.11(f)--Update on Emergency Repair to South Street Water Main ER Project)

APPROVED
Packet Pg. 403
Attachment: Previous Staff Report (4.11(f)--Update on Emergency Repair to South Street Water Main ER Project) APPROVED Packet Pg. 404
Attachment: Previous Staff Report (4.11(f)--Update on Emergency Repair to South Street Water Main ER Project)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the Mayor to sign a letter requesting the Shasta County Board of Supervisors to reconsider their terms attached to the additional $100,000 offered for the Minimum Revenue Guarantee for the new United Airlines Flight between Denver and Redding.

Fiscal Impact
Should the Shasta County Board of Supervisors (BOS) decline to change their terms, the City of Redding (City) will need to provide an additional $100,000 to the Minimum Revenue Guarantee (MRG).

Alternative Action
The City Council (Council) could choose to not send the letter, modify the letter, accept the terms proposed by the BOS or provide other direction to staff.

Background/Analysis
The City has successfully negotiated with United Airlines (United) for new air service between Redding and Denver beginning in May 2025. This agreement requires the City to provide a $2 million MRG to United to ensure the flight is profitable in its first year of service. As of December 2024, City staff and the Shasta Economic Development Corporation had obtained contributions from several businesses and organizations totaling $560,000. This, combined with a grant from the Federal Aviation Administration and funds from City sources provided $1,610,000 toward the MRG. This total included a $100,000 contribution from the County of Shasta. The remaining $390,000 would need to be funded by the City or obtained through other donations.

MEETING DATE: March 4, 2025
ITEM NO. 9.1(b)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.1(b)--Consider authorizing Mayor to sign a letter to the Shasta County Board of Supervisors requesting reconsideration of terms attached to the additional $100,000 minimum revenue guarantee for the United Airlines Denver/Redding flight.

Barry Tippin, City Manager
Packet Pg. 405
Report to Redding City Council February 27, 2025
Re: 9.1(b)--Authorize Mayor to Sign Letter to Shasta County Board of Supervisors Page 2 At its January 7, 2025, meeting, the BOS approved an additional $100,000 toward the MRG with the following stipulations:
• The additional $100,000 commitment for the Denver flight is subject to a Memorandum of Understanding (MOU) being negotiated between the City and Shasta County; • The MOU would require that the City agree to discussions in 2025 regarding the possible creation of an airport authority with Shasta County having a seat at the table in operation of the airport; and
• Shasta County requires that the additional $100,000 will be used as the last funds to facilitate the revenue guarantee.

While the offer of funding is much appreciated, staff does not feel the terms are in the best interest of the City nor the Airport. In particular, the requirement for the funding to be “last in”.

This will set a perception that the entire $2 million will not be used and an expectation that for future MRG needs, any and all donors can negotiate the “last in” preference. Staff has informed all of those who provided donations to consider it a grant and not to expect a return of funds.

This is predicated on our past experience along with the experience derived from other airports.

Generally, on the very rare occasion MRG funds remain, they are used to advertise the airport and the various flights available.

With regard to the request to discuss a Joint Powers Agency to run the Airport, that discussion can occur at any time the Council feels it is appropriate and no MOU is necessary.

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

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

Attachments
^Letter to BOS - Reconsideration of Terms - Shasta County MRG Funds Packet Pg. 406
Jack Munns, Mayor
[email protected]
530.225.4447
March XX, 2025
Kevin Crye, Chairman
Shasta County Board of Supervisors
1450 Court Street, Suite 308B
Redding, CA 96001
Subject: Reconsideration of Terms for Additional Minimum Revenue Guarantee Funding Dear Mr. Chairman,
On behalf of the City of Redding, I would like to express our sincere appreciation for the Shasta County Board of Supervisors’ commitment to regional air service and the Board’s approval of an additional $100,000 toward the Minimum Revenue Guarantee (MRG) for the new United Airlines flight between Redding and Denver.

Expanding our air service is critical to fostering economic growth, business opportunities, and improved connectivity for our residents.

While we greatly value the County’s financial support, we respectfully request that the Board reconsider the terms attached to the additional funding. Specifically, the requirement that the County’s contribution be the “last in” funding as this presents challenges in maintaining consistent donor expectations and may inadvertently impact future fundraising efforts. Historically, all MRG contributors have provided their funds essentially as grants without an expectation of reimbursement, and this approach has proven successful in securing new airline services. The proposed “last in” condition sets a precedent that could complicate future efforts to attract airline partners.

Additionally, while the City is open to discussions regarding the formation of an airport authority, we believe these conversations should occur independently of the MRG funding process. The City of Redding is open to engaging in a constructive dialogue regarding airport governance at the appropriate time, without requiring an MOU as a precondition for the County’s financial participation.

We appreciate your consideration of this request and look forward to continuing our strong partnership in advancing regional air service. Please do not hesitate to reach out should you wish to discuss this matter further.

Sincerely,
Jack Munns
Mayor
City of Redding
Packet Pg. 407 Attachment: ^Letter to BOS - Reconsideration of Terms - Shasta County MRG Funds (9.1(b)--Authorize Mayor to Sign Letter to Shasta County

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Adopt Resolution to increase the existing business tax rates on cannabis businesses beginning on July 1, 2025, as follows:
(a) Cultivation Rate from $3 per square foot to $10 per square foot of cannabis cultivation area;
(b) Manufacturing, Processing, Laboratory Testing, Storage, and Distribution Rate from three percent to four percent of gross receipts; and (c) Retailer’s Initial Rate from five percent to seven percent of gross receipts.

Fiscal Impact
As projected for Fiscal Year 2025-26, the proposed business tax increases could generate between $700,000 and $1.3 million of funding for essential City services.

Alternative Action
City Council (Council) could decline to adopt the proposed resolution. Or, Council could increase or decrease the proposed cannabis tax rates pursuant to Redding Municipal Code (RMC) 4.10.

Background/Analysis
On November 6, 2018, the electorate voted to approve a business tax on cannabis businesses within the City of Redding. The City Clerk certified the results of the election on December 4, 2018, and adopted Ordinance No. 2597. The tax on cannabis businesses went into effect on that date.

RMC 4.10.050 authorizes cannabis business taxes to be imposed by resolution. That section MEETING DATE: March 4, 2025
ITEM NO. 9.2(b)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.2(b)--Consider Resolution Increasing business tax on cannabis businesses in the City of Redding.

Steve Bade, Assistant City
Manager
Packet Pg. 408
Report to Redding City Council February 27, 2025
Re: 9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses Page 2 further states that, when such taxes are imposed, they shall remain at the established tax rates for a minimum period of one year. This is intended to provide the taxed cannabis businesses some certainty and to avoid frequent (i.e., quarterly, monthly) variations in the tax rates.

In February 2020, the cannabis business tax rates set forth in Resolution No. 2018-071, were restated and extended indefinitely until such time as further modified by the City Council of the City of Redding and are as follows:
a. Cultivation Initial Rate: $3.00 per square foot of cannabis cultivation area. b. Manufacturing, Processing, Laboratory Testing, Storage, and Distribution Initial Rate: three percent of gross receipts.
c. Retailer’s Initial Rate: five percent of gross receipts. Sales to persons with a state issued medical identification card, issued for medical purposes, shall be excluded from the calculation of gross receipts for the purpose of the cannabis business tax. State issued medical identification card means a document issued by the State Department of Public Health that identifies a person authorized to engage in the medical use of cannabis and the person’s designated primary caregiver, if any, in accordance with Section 11362.71 of the Health and Safety Code.

By ensuring that cannabis businesses contribute reasonably and fairly to paying for the costs associated with allowing this industry to operate while allowing the City to continue to maintain stable funding for essential City services and continued quality of life, staff recommends increasing the cannabis tax rates.

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

Council Priority/City Manager Goals
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Attachments
^Resolution
Previous Staff Report - June 19, 2018, Item 9.14(a) - Place Cannabis Business Tax on the Election Ballot
Reso 2018-071 - Cannabis Business General Tax
Previous Staff Report - February 4, 2020, Item 4.14(b) - Resolution to Continue Cannabis Business Tax
Packet Pg. 409
RESOLUTION NO. 2025-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

INCREASING BUSINESS TAXES ON CANNABIS BUSINESSES
PURSUANT TO CHAPTER 4.10 OF THE REDDING MUNCIPAL CODE
WHEREAS, on June 19, 2018, the City Council of the City of Redding adopted Resolution No. 2018-071 which established November 6, 2018, as the date for a general election on a proposed ballot measure seeking voter approval of a general tax on cannabis businesses operating in the City of Redding; and
WHEREAS, the tax on cannabis businesses was approved by the registered voters of the City of Redding at the general election held on November 6, 2018, and the results of election were certified by the City Clerk on December 4, 2018; and
WHEREAS, the excise tax was codified as Ordinance No. 2597 and published as Chapter 4.10 of the Redding Municipal Code (“RMC”); and
WHEREAS, RMC 4.10.050 establishes maximum excise tax rates for all cannabis businesses and permits the City Council of the City of Redding to establish tax rates that do not exceed the established maximum rates; and
WHEREAS, pursuant to RMC 4.10.050, the City Council may, by resolution, also decrease or increase any such tax rate from time to time, provided that the tax rate shall not, at any time, exceed the maximum tax rate established in Subsection (B)(1).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING RESOLVES AS FOLLOWS:

1. The cannabis business tax rates set forth in Resolution No. 2018-071 are hereby increased and extended indefinitely until such time as further modified by the City Council of the City of Redding as follows:
a. Cultivation Initial Rate: $10.00 per square foot of cannabis cultivation area. b. Manufacturing, Processing, Laboratory Testing, Storage, and Distribution Initial Rate: Four percent (4%) of gross receipts.
c. Retailer’s Initial Rate: Seven percent (7%) of gross receipts. Sales to persons with a state issued medical identification card, issued for medical purposes, shall be excluded from the calculation of gross receipts for the purpose of the cannabis business tax. State issued medical identification card means a document issued by the State Department of Public Health that identifies a person authorized to engage in the medical use of cannabis and the person’s designated primary caregiver, if any, in accordance with Section 11362.71 of the Health and Safety Code.

Packet Pg. 410 Attachment: ^Resolution (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses)

2. This Resolution shall take effect on July 1, 2025.

I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the Redding City Council on the 4th day of March, 2025 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

___________________________________
JACK MUNNS, Mayor
ATTEST: APPROVED AS TO FORM:
________________________________ ___________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney Packet Pg. 411 Attachment: ^Resolution (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution to:
(1) Place a general tax measure on the ballot of the November 6, 2018, General Election, passable by a simple majority, for a general business tax on cannabis businesses operating in the City of Redding which would tax cannabis cultivation businesses up to $25 per square foot of cultivation area (annually adjusted by CPI) and on cannabis manufacturing, processing, laboratory testing, delivery, storage, distribution, and retail sale up to 10 percent of gross receipts with all funds to be spent for unrestricted general revenue purposes and subject to annual audits;
(2) Approve the proposed Ordinance and its submission to the voters of the City of Redding at the November 6, 2018, General Election and establish policies and procedures in connection with such an election;
(3) Appoint no more than two City Council (Council) Members to write the ballot arguments, either for or against, should the Council wish to do so; and (4) Request the services of the Registrar of Voters in conducting said election.

Fiscal Impact
It is estimated that the cannabis business tax would generate approximately $750,000 in revenue per year.

The proposed Ordinance imposes a tax on commercial cannabis cultivation at an annual rate established by City Council Resolution that shall not exceed $25 per square foot. The tax imposed shall not be implemented unless and until the City Council acts by Resolution to do so, and the tax rate shall be set for a minimum term of one year. The proposed Resolution sets the initial rate for commercial cannabis cultivation at $3 per square foot of cannabis cultivation area.

MEETING DATE: June 19, 2018
ITEM NO. 9.14(a)
[T-010/M-020/F-205-600]
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.14(a)--Place General Tax Measure for Cannabis Businesses on General Election Ballot
Barry DeWalt, City Attorney
Packet Pg. 412 Attachment: Previous Staff Report - June 19, 2018, Item 9.14(a) - Place Cannabis Business Tax on the Election Ballot (9.2(b)--Resolution Report to Redding City Council June 14, 2018
Re: 9.14(a)--Place General Tax Measure for Cannabis Businesses on General Election BallotPage 2 The proposed Ordinance imposes a tax on manufacturers, processors, laboratory testers, storers, distributors, and retailers of commercial cannabis at an annual tax rate established by City Council Resolution which rate shall not exceed ten percent of annual gross receipts for a minimum one-year term. The proposed Resolution establishes the initial tax rate at three percent of gross receipts for manufacturers, processors, laboratory testers, storers, and distributors and at five percent of gross receipts for retailers.

There are costs associated with placing the measure on the ballot that must be paid to the Shasta County Clerk/Registrar of Voters. Staff estimates that the cost to place this general tax measure on the November 6, 2018, ballot will be approximately $30,000.

Alternative Action
The City Council could choose to not adopt any Resolution resulting in no local mechanism for taxing commercial cannabis.

Background/Analysis
On November 8, 2016, California voters enacted Proposition 64 to legalize adult recreational use of cannabis and to allow businesses that support such cannabis use to operate legally, subject to regulations imposed by state and local public entities. The State of California Governor’s Office then proposed a series of amendments to the state’s regulatory structure during the budget process, known as “SB 94,” “the Governor’s Trailer Bill,” now known as the Medical and Adult Use Cannabis Regulation and Safety Act or “MAUCRSA.” Since that time, more than fifty other California jurisdictions – typically in collaboration with cannabis businesses – have enacted local measures to impose a general tax on cannabis business for the privilege of operating within the local jurisdiction.

Such taxes are imposed on cannabis businesses, and not directly on cannabis users or consumers.

The City of Redding presently has no local cannabis industry business tax and adopting such a tax measure in the City of R e d d i n g will benefit residents of the City by ensuring that cannabis businesses contribute reasonably and fairly to paying for the costs associated with allowing this emerging industry to operate while allowing the City to continue to maintain stable funding for essential City services and continued quality of life.

City staff recognizes the volatility of the newly-legalized cannabis market and, therefore, recommends the following limited initial tax rates to balance the financial needs of the City and the desire of the City to support and encourage the industry to engage in the regulated market:
(1) Tax on Commercial Cannabis Cultivation: Section 4.10.050A of the proposed Ordinance establishes a tax on commercial cannabis cultivation at a rate not to exceed $25 per square foot (adjusted annually by the CPI). The specific tax rate in this range is set by Resolution for a minimum term of one year. The proposed Resolution establishes the initial tax rate at $3 per square foot.
(2) Tax on Manufacturing, Processing, Laboratory Testing, Storage, and Distribution: Section 4.10.050B of the proposed Ordinance establishes a tax on manufacturing, processing, laboratory testing, storage, and distribution at a rate not to exceed ten percent of annual gross receipts. The specific tax rate in this range is set by Resolution for a minimum term Packet Pg. 413 Attachment: Previous Staff Report - June 19, 2018, Item 9.14(a) - Place Cannabis Business Tax on the Election Ballot (9.2(b)--Resolution Report to Redding City Council June 14, 2018
Re: 9.14(a)--Place General Tax Measure for Cannabis Businesses on General Election BallotPage 3 of one year. The proposed Resolution establishes the initial tax rate at three percent of gross receipts.
(3) Tax on Retailers: Section 4.10.050B of the proposed Ordinance establishes a tax on retailers at a rate not to exceed ten percent of annual gross receipts. The specific tax rate in this range is set by Resolution for a minimum term of one year. The proposed Resolution establishes the initial tax rate at five percent of gross receipts for retailers.

The tax measure will provide locally-controlled revenue that cannot be taken by the State, and the taxes which result from this measure are payable solely by the regulated cannabis businesses thereby causing no fiscal impact to those who are not participants, either as producer or consumer, in the cannabis industry.

Council Priority/City Manager Goals
 Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
 Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work and play in the City of Redding.”  Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Attachments
Resolution
Proposed Ordinance
Packet Pg. 414 Attachment: Previous Staff Report - June 19, 2018, Item 9.14(a) - Place Cannabis Business Tax on the Election Ballot (9.2(b)--Resolution RESOLUTION NO. 2018- 071

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING ESTABLISHING NOVEMBER 6, 2018, AS THE DATE FOR A GENERAL

ELECTION ON A PROPOSED BALLOT MEASURE SEEKING VOTER

APPROVAL OF A GENERAL BUSINESSS TAX ON CANNABIS

BUSINESSES OPERATING IN THE CITY OF REDDING
WHEREAS, the City of Redding has responsibly and proactively managed its finances and its taxpayer dollars through transparent budget and decision- making processes; and WHEREAS, on November 8, 2016, California voters enacted Proposition 64 to legalize adult recreational use of cannabis and to allow businesses that support such cannabis use to operate legally, subject to regulations imposed by state and local public entities; and WHEREAS, the State of California Governor' s Office proposed a series of amendments to the state' s
regulatory structure during the budget process, known as " SB 94," " the Governor' s Trailer Bill," in order to better align the requirements of the Medical Cannabis Regulation and Safety Act (" MCRSA") and Proposition 64, now known as the Medical and Adult Use Cannabis Regulation and Safety Act or" MAUCRSA;" and
WHEREAS, more than fifty( 50) other California jurisdictions— typically in collaboration with cannabis businesses — have enacted local measures to impose a general tax on cannabis business for the privilege of operating within the local jurisdiction; and WHEREAS, such business taxes are imposed on cannabis businesses, and not directly on cannabis users or consumers; and
WHEREAS, adopting such a local cannabis industry business tax measure in the City of Redding will benefit residents of the City by ensuring that cannabis businesses contribute r reasonably and fairly to paying for the costs associated with allowing this emerging industry to operate while allowing the City to continue to maintain stable funding for essential City services and continued quality of life; and J
WHEREAS, the City recognizes the volatility of the newly- legalized cannabis market and will therefore set limited initial tax rates to balance the financial needs of the City and the desire of the City to support and encourage the industry to engage in the regulated market; and WHEREAS, such a tax measure will provide locally- controlled revenue that cannot be taken by the State; and
WHEREAS, the taxes which result from this measure are payable solely by the regulated cannabis businesses thereby causing no fiscal impact to those who are not participants, either as producer or consumer, in the cannabis industry; and
Packet Pg. 415 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) WHEREAS, such a tax measure will help to maintain the City' s long-term financial stability, with public oversight and annual fiscal reviews; and WHEREAS, the City of Redding wishes to continue its policy engagement and discussions with stakeholders and the public about how cannabis businesses operating in Redding should be regulated, while acting quickly and decisively to address any significant financial disruptions or impact to the City' s General Fund and provision of services to Redding citizens; and
WHEREAS, the revenue from such a business tax can be spent for unrestricted general revenue purposes;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
REDDING RESOLVES AS FOLLOWS:

SECTION 1. NOTICE AND CALL OF GENERAL ELECTION.

The City Council, pursuant to its right and authority, does call a General Municipal Election and orders submitted to the voters at a General Municipal Election to be held and consolidated with the Statewide General Election on Tuesday, November 6, 2018, the following questions:

BALLOT MEASURE#
Shall the City of Redding adopt a business tax on cannabis YES cultivation businesses up to $ 25 per square foot of cultivation area and on cannabis manufacturing, processing, laboratory testing, delivery, storage, distribution, and retail sale up to 10% NO of gross receipts, to enhance and maintain vital public safety services, reduce crime, and protect other general services with all funds to be spent for unrestricted general revenue purposes, generating approximately $ 750, 000 annually?
SECTION 2. REQUEST TO CONSOLIDATE AND CONDUCT
ELECTION AND CANVASS RETURNS.

A) The City Council of the City of Redding hereby requests and consents to the consolidation of this election with other elections which may be held in whole or in part in the territory of the City as provided in Elections Code 10400 et seq. The Redding City Clerk shall file a certified copy of this Resolution with the Shasta County Clerk/Registrar of Voters to ensure the requisite timeframes for holding the election as required by applicable law.

Packet Pg. 416 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) B) The City hereby requests the Board of Supervisors of the County of Shasta to consolidate the Municipal Election with the statewide election being conducted on the same date in the same territory or any territory which is in part the same, and the City consents to reimburse the Registrar of Voters for all costs incurred by said services. Pending approval of such request, the Municipal Election will be consolidated with any election held by the County of Shasta. In any event, the Municipal Election will be held on November 6, 2018, from the hour of 7: 00 a. m. to the hour of 8: 00 p. m., during which period of time the polls will remain continuously open. At 8: 00 p.m. the polls will be closed, except as provided in Section 14401 of the Elections Code, and the officers of the election shall thereupon proceed to canvass the ballots cast thereat.

C) The election precincts, polling places, and voting booths within said City for said Municipal Election shall in every case be the same as the election precincts, polling places, and voting booths established for the statewide election, and the election officers for said Municipal Election shall be the same as those selected and designated or to be selected and designated for the statewide election.

D) Said Municipal Election shall be held and conducted, and the voters thereof canvassed, and the returns thereof made, all in accordance with the general election laws of the State of California and the ordinances of said City.

E) All persons qualified to vote at municipal elections in said City shall be qualified to vote.

F) Said Council shall meet forthwith after the canvass of the returns of said election and shall state in the minutes of such meeting the results of said election as ascertained by said canvass.

SECTION 3. PLACEMENT OF BUSINESS TAX MEASURE
ON THE NOVEMBER 6, 2018, BALLOT.

The Ordinance authorizing the business tax to be approved by the voters is set forth in Exhibit A.

The City Council hereby approves the Ordinance, the form thereof, and its submission to the voters of the City at the November 6, 2018, general election. If a simple majority of the qualified voters voting on the Ordinance shall vote in favor thereof, the Ordinance shall be deemed adopted and shall be effective in accordance with its terms. Initial cannabis business tax rates, should the proposed ballot initiative pass on November 6, 2018, shall be set as follows for a term of one ( 1) year beginning the day the Ordinance goes into effect:
a. Cultivation Initial Rate: $ 3. 00 per square foot of cannabis cultivation area.
b. Manufacturing, Processing, Laboratory Testing, Storage, and Distribution Initial Rate: three percent ( 3%) of gross receipts. c. Retailer' s Initial Rate: five percent ( 5%) of gross receipts. Sales to persons with a state issued medical identification card, issued for medical purposes, shall be excluded from the calculation of gross Packet Pg. 417 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) receipts for the purpose of the cannabis business tax. State issued medical identification card means a document issued by the State Department of Public Health that identifies a person authorized to engage in the medical use of cannabis and the person' s designated primary caregiver, if any, in accordance with Section 11362. 71 of the Health and Safety Code.

After the term of one ( 1) year, the City Council of the City of Redding may, by resolution, modify the tax rates up to, but not to exceed, the amount authorized by the electorate.

SECTION 4. PUBLICATION OF MEASURES.

The City Clerk of the City of Redding is hereby authorized to sign a Notice of Election and Measure To Be Voted On in a form substantially similar to that attached hereto as Exhibit B.

The City Clerk is hereby authorized and directed to publish said Notice of Election and Measure To Be Voted On at least one time not later than a week before the election in a newspaper of general circulation circulated within the City of Redding, in accordance with the provisions of Section 12111 of the Elections Code of the State of California.

SECTION 5. SUBMISSION OF BALLOT ARGUMENTS
AND IMPARTIAL ANALYSIS.

A) The City Clerk is hereby authorized and directed to cause to be delivered, no later than June 22, 2018, ( which date is not fewer than 88 days prior to the date set for the statewide election), one copy of this Resolution to the Registrar of Voters of the County.

B) The City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk by 12: 00 p.m. on July 9, 2018.

C) The Finance Director of the City is hereby authorized and directed to prepare and file with the City Clerk an impartial analysis of the measure contained in Section 2 hereof covering its financial impact upon the City government by 12:00 p.m. on July 9, 2018.

D) Pursuant to Section 9282 of the Elections Code of the State of California, the City Council is hereby authorized to prepare a written argument in favor of the proposed measure, not to exceed 300 words. The argument may be signed by members of the City Council or bona fide associations or by individual voters who are eligible to vote on the measure. In the event that an argument is filed against the measure, members of the City Council are also authorized to prepare a rebuttal argument, which may also be signed by bona fide associations or by individual voters who are eligible to vote on the measure.

E) The last day for submission of direct arguments for or against the measures to the City Clerk shall be by 12: 00 p. m. on July 9, 2018.

Packet Pg. 418 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) F) The last day for submission of rebuttal arguments for or against the measures to the City Clerk shall be by 12: 00 p. m. on July 19, 2018.

SECTION 7. SIMPLE MAJORITY VOTE FOR PASSAGE.

This tax is a general tax requiring the approval of a simple majority of the qualified electors casting votes.

SECTION 8. EFFECTIVE DATE.

This Resolution shall take effect immediately upon its adoption, and the City Clerk is directed to send certified copies of this Resolution to the Shasta County Board of Supervisors and to the County Clerk by no later than June 22, 2018.

SECTION 9. CALIFORNIA ENVIRONMENTAL QUALITY ACT.

Based on all of the information presented at the City Council meeting on June 19, 2018, both written and oral, including the staff reports, minutes, and other relevant materials, the City Council finds that under the California Environmental Quality Act (" CEQA") Guidelines sections 15060( c)( 2) and 15378, subdivisions ( 2) and ( 4) of subdivision ( b), the proposed tax measure does not constitute a project under CEQA and, therefore, review under CEQA is not required.

I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the Redding City Council on the 19th day of June, 2018, by a unanimous vote.

AYES: COUNCIL MEMBERS: McElvain, Weaver, Winter, and Schreder NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Sullivan
ABSTAIN: COUNCIL MEMBERS: None
KRISTEN SC DER, Mayor
ATTEST: FORM APPROVED:

Pa/knePa, 4/r/
6)
PAMELA MIZE, C. y Clerk BARR E. eWAL , City Attorney
Packet Pg. 419 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) Exhibit A
Ordinance
ORDINANCE NO.

ORDINANCE OF THE PEOPLE OF THE CITY OF REDDING ADDING
CHAPTER 4. 10 TO THE REDDING MUNICIPAL CODE TO IMPOSE A

BUSINESSS TAX ON CANNABIS BUSINESSES OPERATING IN

REDDING
WHEREAS, the City of Redding has responsibly and proactively managed its finances and its taxpayer dollars through transparent budget and decision- making processes; and WHEREAS, on November 8, 2016, California voters enacted Proposition 64 to legalize adult recreational use of cannabis and to allow businesses that support such cannabis use to operate legally, subject to regulations imposed by state and local public entities; and WHEREAS, the State of California Governor' s Office proposed a series of amendments to the state' s
regulatory structure during the budget process, known as " SB 94," " the Governor' s Trailer Bill," in order to better align the requirements of the Medical Cannabis Regulation and Safety Act (" MCRSA") and Proposition 64, now known as the Medical and Adult Use Cannabis Regulation and Safety Act or" MAUCRSA;" and
WHEREAS, more than fifty( 50) other California jurisdictions— typically in collaboration with cannabis businesses — have enacted local measures to impose a general tax on cannabis business for the privilege of operating within the local jurisdiction; and WHEREAS, such business taxes are imposed on cannabis businesses, and not directly on cannabis users or consumers; and
WHEREAS, adopting such a local cannabis industry business tax measure in the City of Redding will benefit residents of the City by ensuring that cannabis businesses contribute reasonably and fairly to paying for the costs associated with allowing this emerging industry to operate while allowing the City to continue to maintain stable funding for essential City services and continued quality of life; and
WHEREAS, the City recognizes the volatility of the newly-legalized cannabis market and will therefore set limited initial tax rates to balance the financial needs of the City and the desire of the City to support and encourage the industry to engage in the regulated market; and WHEREAS, such a tax measure will provide locally- controlled revenue that cannot be taken by the State; and
Packet Pg. 420 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) WHEREAS, the taxes which result from this measure are payable solely by the regulated cannabis businesses thereby causing no fiscal impact to those who are not participants, either as producer or consumer, in the cannabis industry, and
WHEREAS, such a tax measure will help to maintain the City' s long- term financial stability, with public oversight and annual fiscal reviews; and WHEREAS, the City of Redding wishes to continue its policy engagement and discussions with stakeholders and the public about how cannabis businesses operating in Redding should be regulated, while acting quickly and decisively to address any significant financial disruptions or impact to the City' s General Fund and provision of services to Redding citizens; and
WHEREAS, the revenue from such a business tax can be spent for unrestricted general revenue purposes;

NOW, THEREFORE, THE PEOPLE OF THE CITY OF REDDING DO ORDAIN AS FOLLOWS:

Section 1: The above recitals constitute a part of the findings made by the citizens in enacting this Ordinance.

Sectij n 2. Chapter 4. 10 is hereby added to Title 4 of the Redding Municipal Code to read as follows:

CHAPTER 4. 10 CANNABIS BUSINESS TAX
Sections:

4. 10. 010— Title.

4. 10.020 - General Excise Tax.

4. 10.030— Purpose.

4. 10. 040— Definitions.

4. 10. 050— Authorized.

4. 10. 060— Registration of Cannabis Business.

4. 10. 070— Reporting and Remittance of Tax.

4. 10.080— Payments and Communications— Timely Remittance.

4. 10.090— Payment— When Taxes Deemed Delinquent.

4. 10. 100— Notice Not Required By City.

4. 10. 110— Delinquent Registration or Taxes— Penalties and Interest.

4. 10. 120— Exemptions from the Tax.

4. 10. 130— Enforcement.

4. 10. 140— Rules and Regulations.

4. 10. 150— Apportionment.

4. 10. 160— Construction.

4. 10. 170— Audit and Examination of Records and Equipment.

4. 10. 180 - Other License, Permits, Taxes, Fees, or Charges.

Packet Pg. 421 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses)

4. 10. 190— Successor' s and Assignee' s Responsibility.

4. 10.200— Payment of Tax Does Not Authorize Unlawful Business.

4. 10.210— Deficiency Determinations.

4. 10. 220— Failure to Report— Nonpayment.

4. 10. 230— Tax Assessment— Notice Requirements.

4. 10.240— Appeal Procedure.

4. 10.250— Conviction for Chapter Violation — Taxes no Waived.

4. 10. 260— Violation Deemed Misdemeanor.

4. 10.270— Actions to Collect.

4. 10. 280— Remedies Cumulative.

4. 10.290— Amendment.

4. 10.300— Others Taxes and Fees.

4. 10.310— California Environmental Quality Act Requirements.

4. 10.320— Revenue Collected.

4. 10.010. Title.

This ordinance shall be known as the Cannabis Business Tax Ordinance.

4. 10.020. General Excise Tax.

The cannabis business tax is enacted solely to raise revenue and not to regulate cannabis activity; regulation of that activity remains the province of the City Council. The cannabis business tax is an excise tax on the privilege of engaging in cannabis business activity in the City; it is not a sales or use tax. All of the proceeds from the tax imposed by this Chapter shall be placed in the City's general fund and used for general governmental purposes.

4. 10.030. Purpose.

This ordinance is adopted to achieve the following purposes, among others, and shall be interpreted to accomplish those purposes:

A. To impose an excise tax on certain businesses engaged in the cannabis industry operating within the City of Redding pursuant to the Medicinal and Adult- Use Cannabis Regulation and Safety Act ( MAUCRSA), the Adult Use of Marijuana Act ( AUMA) which was approved by the state' s voters on November 8, 2016, and/ or any other enabling legislation or regulation, or in violation of such legislation, and notwithstanding whether such state laws use the term " marijuana" or " cannabis;" and B. To specify the type of tax and maximum rate of tax that may be levied and the method of collection; and
C. To comply with all requirements to impose a general excise tax, such tax to become operative only if and to the extent implemented by the City Council by resolution.

Packet Pg. 422 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses)

4. 10. 040. Definitions.

The following words and phrases shall have the meanings set forth below when used in this Chapter unless the context plainly requires otherwise:

A. "Business" means professions, trades, occupations and all and every kind of calling, whether or not carried on for profit.

B. " Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indicia, or Cannabis ruderalis, or any other strain or varietal of the genus Cannabis that may exist or hereafter be discovered or developed that has psychoactive or medicinal properties, whether growing or not, including the seeds thereof. In addition, and without limiting the foregoing, " Cannabis" also means cannabis as defined by Section 26001 of the Business and Professions Code, as may be amended from time to time, and all other applicable state law.

C. " Cannabis business" or " cannabis industry" means any business activity in the City relating to cannabis ( whether medical or adult- use recreational), including but not limited to cultivation ( including nurseries), transportation, processing, distribution, manufacture, compounding, conversion, processing, preparation, laboratory testing, storage, packaging, delivery and sales ( wholesale and/ or retail sales) of cannabis or cannabis products, whether or not carried on for gain or profit. A cannabis business does not include any business whose only relationship to cannabis or cannabis products is the production or sale of cannabis accessories.

D. " Cannabis cultivation area" means the total aggregate area( s) of cannabis cultivation by a cannabis business as measured around the outermost perimeter of each separate and discrete area of cannabis cultivation at the dripline of the canopy expected at maturity and includes, but is not limited to, the space between plants within the cultivation area, the exterior dimensions of garden beds, garden plots, hoop houses, green houses, and each room or area where cannabis plants are grown, excluding non- production areas, as determined by the Development Services Director or designee.

E. " Cannabis business tax" means the tax due pursuant to this Chapter for engaging in cannabis business in the City of Redding.

F. " Cannabis concentrate" means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product' s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division.

G. " Cannabis product" means any product containing cannabis, including, but not limited to, flowers, buds, oils, tinctures, concentrates, extractions, edibles and those products described in Section 11018. 1 of the California Health and Safety Code.

H. " Canopy" means all areas occupied by any portion of a cannabis plant, inclusive of all vertical planes, whether the areas are contiguous or noncontiguous. The plant canopy Packet Pg. 423 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) need not be contained to a single parcel of land in determining the total square footage that will be subject to tax under this Chapter.

City" means the City of Redding, either the entity or its territorial limits, as the context requires.

J. City Council" or" Council" means the City Council of the City of Redding.

K. " Collector" means the City Director of Finance or designee.

L. " Commercial cannabis cultivation" means cultivation conducted by, for, or as part of a cannabis business. Commercial cannabis cultivation does not include personal medical cannabis cultivation, or cultivation for personal recreational use as authorized under the AUMA and as amended by MAUCRSA, for which the individual receives no compensation whatsoever.

M. " Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis or any part thereof. " Cultivation" also includes nurseries. In addition, and without limiting the foregoing, " cultivation" includes cultivation" as defined in California Business and Professions Code section 26001 and any successor statute, as may be adopted and amended from time to time.

N. " Distributor" means a person engaged in procuring cannabis from a cultivator, and/ or procuring cannabis products from a manufacturer, for sale to a Retailer. " Distribution" means the procurement, sale, and transport of cannabis and cannabis products between licensees.

0. "Employee" means each and every person engaged in the operation or conduct of any cannabis business, whether as owner, member of the owner' s family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such cannabis business for a wage, salary, commission, barter or any other form of compensation.

P. " Evidence of doing business" means when any person shall by use of signs, circulars, cards, telephone book, internet, advertisement or newspapers, advertise, hold out, or represent that he is in business in the City, or when any person holds an active license or permit issued by a governmental agency indicating that he is in business in the City, or when such person fails to deny by a sworn statement given to the Collector that he is not conducting a business in the City, after being requested to do so by the Collector, then these facts shall be considered prima facie evidence that he or she is conducting a business in the City.

Q. " Gross receipts" means the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, Packet Pg. 424 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) dividends, and gains realized from trading in stocks or bonds, however designated.

Gross receipts" shall include all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever.

R. " Manufacturer" means a person who conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, or who packages or repackages cannabis or cannabis products or labels or re- labels its container. In addition, and without limiting the foregoing, " manufacturer" includes " manufacturer" as defined in California Business and Professions Code section 26001 and any successor statute, as may be adopted or amended from time to time.

S. " Nursery" means a person who produces cannabis clones, immature plants, and/ or seeds for wholesale distribution, used specifically for the planting, propagation, and cultivation of cannabis. In addition, and without limiting the foregoing, " nursery" includes " nursery" as defined in California Business and Professions Code section 26001 and any successor statute, as may be adopted or amended from time to time.

T. " Person" shall have the meaning set forth in Section 6. 12. 010.

U. " Personal medical cannabis cultivation" means cultivation, by either a qualified patient who cultivates cannabis exclusively for his or her personal medical use or by a caregiver who cultivates cannabis exclusively for medical use by qualified patients and who is exempt from State licensing requirements under MAUCRSA .

V. " Retailer" means a business where cannabis or cannabis products, are offered, either individually or in combination, for retail sale, including a business that engages in delivery of cannabis or cannabis products as part of a retail sale.

W. " Sale" means the transfer, in any manner or by any means whatsoever, of title to real or personal property for a consideration; the serving, supplying, or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The definitions in this subsection shall be deemed to include any transaction which is or which, in effect, results in a sale within the contemplation of law.

X. " State" means the State of California.

Y. " State license" means a state license issued pursuant to California Business & Professions Code Sections 26000 et seq. or other applicable state law.

Z. " Vertically Integrated Business" means a cannabis business with a Type 12 license or any Packet Pg. 425 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) cannabis business holding two or more license types that internally transfers products between cultivation, manufacturing, distribution, or retail operations without a recorded sale to determine gross receipts for purposes of the cannabis business tax.

4. 10.050. Authorized.

A cannabis business tax is hereby imposed on every person who is engaged in cannabis business in the City as prescribed herein, from and after the effective date of a City Council resolution implementing the tax. It is unlawful for any person to transact or carry on any cannabis business in the City without paying, in accordance with this Chapter, the cannabis business tax imposed by this section.

A. Tax on Commercial Cannabis Cultivation.

1. There is hereby imposed on every person engaged in commercial cannabis cultivation in the City, an annual tax at a rate established by resolution of the City Council which rate shall not exceed $ 25 per square foot of cannabis cultivation area. The maximum square foot tax shall be adjusted annually each January 1st based on the year- over- year percentage change in Bureau of Labor Statistics San Francisco/ Oakland/ San Jose Consumer Price Index —All Urban Consumers ( CPIU) October to October comparison, or if such index is discontinued, a comparable successor consumer price index as determined by the City Council. The tax imposed under this Subsection ( A)( 1) shall be due and payable in quarterly installments as provided in Section 4. 10. 070 of this Chapter. The tax imposed under this Subsection ( A)( 1) shall not be implemented unless and until the City Council acts by resolution to do so.

2. The City Council may by resolution, in its discretion, implement a tax rate lower than the maximum rates set forth in Subsection ( A)( 1) for all persons engaged in commercial cannabis cultivation in the City or establish differing tax rates for different categories of commercial cannabis cultivation. For example, and without limitation, the City Council may set different tax rates for cannabis cultivation for medical or adult recreational use, or for indoor rather than outdoor or mixed light cultivation. The City C ouncil may, by resolution, also decrease or increase any such tax rate from time to time, provided that the tax rate shall not, at any time, exceed the maximum tax rates established in Subsection ( A)(1). Tax rates shall be set for a minimum term of one ( 1) year.

B. Tax on Cannabis Manufacturers, Processors, Laboratory Testers, Storers, Distributors, and Retailers.

1. There is hereby imposed on every person engaged in a cannabis business in the City as a manufacturer, processor, laboratory tester, storer, distributor or a retailer an annual tax at a rate established by resolution of the City council which rate shall not exceed ten percent ( 10%) of annual gross receipts. The tax imposed under this Subsection ( B)( 1) shall be due and payable in quarterly Packet Pg. 426 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) installments as provided in Section 4. 10. 070 of this Chapter. The tax imposed under this Subsection ( B)( 1) shall not be implemented unless and until the City Council acts by resolution to do so.

2. The City Council may by resolution, in its discretion, implement a tax rate lower than the maximum rate established in Subsection ( B)( 1) for all persons engaged in a cannabis business in the City as a manufacturer, processor, l a b o r a to r y tester, store r, distributor or a retailer, or establish differing tax rates for different categories of cannabis business. For example, and without limitation, the City Council may set different rates for businesses serving medical or adult recreational use, or for different types of manufacturers, distributors or retailers.

The City Council may, by resolution, also decrease or increase any such tax rate from time to time, provided that the tax rate shall not, at any time, exceed the maximum tax rate established in Subsection ( B)( 1). Tax rates shall be set for a minimum term of one ( 1) year.

B. No further voter approval shall be required for the adoption or increase of a tax under the authority granted by Section 4. 10. 050 of this Chapter, it being the intent of the People of the City of Redding to authorize such a tax up to and including the maximum rates set forth above whenever implemented by the City C ouncil by resolution hereafter.

4. 10.060. Registration of Cannabis Business.

All persons engaging in a cannabis business, whether an existing, newly- established or acquired business, shall register with the Collector within thirty (30) days of commencing operation or by January 1, 2019, whichever is later, and shall annually renew such registration by January 1 of each year thereafter. In registering, such persons shall furnish to the Collector a sworn statement, upon a form provided by the Collector, setting forth the following information:
1) The name of the business;
2) The names and addresses of each owner;
3) The exact nature or kind of business;
4) The place where such business is to be carried on; and 5) Any further information which the Collector may require.

4. 10. 070. Reporting and Remittance of Tax.

The cannabis business tax imposed by this Chapter shall be due and payable as follows:

A. Each person subject to tax under this Chapter, except a cannabis cultivation tax based on square footage, shall, on or before the last day of the month following the close of each calendar quarter, prepare and submit a tax return and remit to the Collector the tax due for that quarter. At the time the return is filed, the full amount of the tax due for the prior quarter shall be remitted to the Collector.

B. Each person subject to a cannabis cultivation tax based on a square footage shall, on or before the last day of the month following the close of each calendar quarter, prepare and Packet Pg. 427 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) submit a tax return and remit to the Collector the tax due for that quarter. The tax shall be calculated in accordance with rules and regulations established by the Collector pursuant to Section 4. 10. 160. The tax return may include a request for adjustment of the tax due to crop loss or periods without cultivation, along with evidence substantiating the crop loss or fallow periods. If the cultivation begins sixty days or more after January 1 or terminates sixty days or more before December 31 of the calendar year, a request to prorate the tax may be submitted with evidence supporting the timing of the cultivation.

The decision to prorate or adjust the tax will be made at the sole discretion of the Collector. At the time the return is filed, the full amount of the tax due for the prior quarter shall be remitted to the Collector.

C. All tax returns shall be completed on forms prescribed by the Collector.

D. Tax returns and payments for all outstanding taxes owed the City under this Chapter are immediately due and payable to the City of Redding upon cessation of business for any reason.

4. 10. 080. Payments and Communications— Timely Remittance.

Whenever any payment, return, report, request or other communication is due under this Chapter, it must be received by the Collector on or before the due date. A postmark will not be accepted as timely remittance. If the due date falls on Saturday, Sunday or a City holiday, the due date shall be the next regular business day on which the City is open to the public.

4. 10. 090. Payment— When Taxes Deemed Delinquent.

Unless otherwise specifically provided under other provisions of this Chapter, the taxes required to be paid pursuant to this Chapter shall be deemed delinquent if not received by the City of Redding on or before the due date as specified in Section 4. 10. 070.

4. 10. 100. Notice Not Required By City.

The City of Redding is not required to send a delinquency or other notice or bill to any person subject to this Chapter. Failure to send such notice or bill shall not affect the validity of any tax or penalty or interest due under this Chapter.

4. 10. 110. Delinquent Taxes— Penalties and Interest.

A penalty in the amount of ten percent ( 10%) of the tax due shall be applied when a delinquency occurs. All amounts due shall be considered general accounts receivable, and there shall be assessed interest on all such amounts as determined by the City Council.

4. 10. 120. Exemptions from the Tax.

A. Nothing in this Chapter shall be deemed or construed to apply to any person transacting and carrying on any business that is exempt from the payment of such taxes as are herein Packet Pg. 428 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) prescribed by virtue of the Constitution or applicable statutes of the United States or of the State.

B. Any person claiming an exemption pursuant to this Section shall file a sworn statement with the Collector stating the facts upon which exemption is claimed. Unless and until the Collector determines in writing that such person is exempt from tax under this Chapter, such person shall be liable for the payment of the tax imposed by this Chapter.

4. 10. 130. Enforcement.

It shall be the duty of the Collector to enforce each and all of the provisions of this Chapter.

4. 10. 140. Rules and Regulations.

The Collector may adopt rules and regulations not inconsistent with the provisions of this Chapter as may be necessary or desirable to aid in the implementation and enforcement of the provisions of this Chapter. A copy of any such rules and regulations shall be available for public inspection in the Collector' s office.

4. 10. 150. Apportionment.

If a cannabis business subject to a cannabis business tax is operating both within and outside the City, it is the intent of the City to apply the cannabis business tax so that the measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City. The Collector may adopt administrative procedures for apportionment pursuant to section 4. 10. 140 of this Chapter.

4. 10. 160. Construction.

A. This tax is intended to be applied in a manner consistent with the United States and California Constitutions, state and local law. None of the tax provided for by this Chapter shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State of California or a violation of any other provision of the California Constitution, state or local law.

B. This Chapter shall be construed and implemented consistent with the provisions of Chapter 6. 12 of this code except as this Chapter or other law otherwise requires or the Collector otherwise determines in writing as authorized under this code.

4. 10. 170. Audit and Examination of Records and Equipment.

A. The Collector shall have the power to audit and examine all books and records of any person engaged in cannabis business in the City, including both state and federal income tax returns, California sales tax returns, or other evidence documenting the gross receipts of persons engaged in cannabis business, and, where necessary, all equipment of any Packet Pg. 429 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) person engaged in cannabis business in the City, for the purpose of ascertaining the amount of cannabis business tax, if any, required to be paid under this Chapter, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to this Chapter. If such person, after written demand by the Collector, refuses to make available for audit, examination or verification such books, records or equipment as the Collector requests, the Collector may, after full consideration of all information within his or her knowledge concerning the cannabis business and activities of the person so refusing, make an assessment against the cannabis business of the taxes estimated to b e due under this Chapter.

B. The cannabis business being audited shall be liable for the cost of the audit and all reasonable City administrative expenses related to the audit.

C. It shall be the duty of every person liable for the collection and payment to the City of any tax imposed by this Chapter to keep and preserve, for a period of at least three ( 3) years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Collector shall have the right to inspect at all reasonable times.

4. 10. 180. Other Licenses, Permits, Taxes, Fees, or Charges.

Except as expressly provided in this Chapter, nothing contained in this Chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any permit or license required by, under or by virtue of any provision of any other title or Chapter of this code or any other ordinance or resolution of the City, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required by, under or by virtue of any other title or Chapter of this code or any other ordinance or resolution of the City. Any references made or contained in any other title or Chapter of this code to any permits, licenses, taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the permits, licenses, taxes, fees or charges, or schedule of license fees, provided for in other titles or chapters of this code unless otherwise expressly provided.

4. 10. 190 Successor' s and Assignee' s Responsibility.

A. If any person, while liable for any amount under this Chapter, sells, assigns or otherwise transfers the cannabis business, whether voluntarily or involuntarily, the person' s successor, assignee or other transferee, or other person or entity obtaining ownership or control of the business (` Transferee"), shall satisfy any tax liability owed to the City associated with the business when due hereunder. Failure to do so for the benefit of the City will result in the Transferee being personally liable to the City for the full amount of the unpaid tax liability, interest and penalties. The Transferee shall notify the Collector of the date of transfer at least thirty (30) days before the transfer date; or if the agreement to sell, transfer, or otherwise dispose of the business was made less than thirty ( 30) days before the date of transfer, notice shall be provided immediately upon the existence of the agreement.

Packet Pg. 430 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) B. The Transferee shall be deemed to have complied with the requirement of this section to satisfy the unpaid tax liability if the Transferee complies with the requirements of California Revenue and Taxation Code Section 7283. 5 by withholding from the purchase price, for the benefit of the City, an amount sufficient to cover the tax liability, or by otherwise paying the tax liability and obtaining from the Collector a " Tax Clearance Certificate" showing that all outstanding tax liability has been paid and stating that no amount is due through the date of transfer.

C. The Collector, within ninety ( 90) days of receiving a written request from a Transferee, may issue a " Tax Clearance Certificate" stating either the amount of tax liability due and owing for the business, or stating that there is no tax liability due and owing for the business through a stated date. The Collector may also request financial records from the current or former owner or operator to audit the tax that may be due and owing. The Collector shall issue a Tax Clearance Certificate within thirty ( 30) days of completing the audit, stating the amount of the tax liability owed, if any, unless the Collector determines that the records provided in connection with the audit are insufficient to determine whether taxes are due and owed or in what amount. If the Collector determines that the records are insufficient, the Collector may rely on the facts and information available to estimate any tax liability. The Collector may issue a Tax Clearance Certificate stating the amount of the tax liability, if any, based on such facts and information available. Unless an appeal is filed in accordance with Section

4. 10. 240, the Tax Clearance Certificate shall serve as conclusive evidence of the tax liability associated with the property through the date stated on the certificate.

4. 10. 200. Payment of Tax Does Not Authorize Unlawful Business.

A. The payment of a tax required by this Chapter, and its acceptance by the City, shall not entitle any person to engage in any cannabis business unless the person has complied with all of the requirements of this code and all other applicable state or local laws.

B. No tax paid under this Chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any state or local laws.

4. 10.210. Deficiency Determinations.

If the Collector is not satisfied that any tax return or other statement filed as required under this Chapter is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the facts contained in the tax return or statement or any information in his or her possession or that may come into his or her possession within three ( 3) years of the date the tax was originally due and payable, or such later date as allowable by law. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three ( 3) years thereafter, or such later date as allowable by law, as to any liability arising from engaging in such business whether or Packet Pg. 431 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) not a deficiency determination is issued prior to the date the tax would otherwise be due.

Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Section 4. 10. 230.

4. 10. 220. Failure to Report—Nonpayment.

A. Under any of the following circumstances and at any time, the Collector may make and give notice of an assessment of the amount of tax owed by a person under this Chapter:

1. If the person has not filed a complete return or statement required under this Chapter;

2. If the person has not timely paid any tax, fee, interest and/ or penalties due under of this Chapter; or

3. If the person has not, after demand by the Collector, filed a corrected return or statement, or furnished to the Collector adequate substantiation of the information contained in a return or statement filed previously.

B. The notice of assessment shall separately set forth the amount of any tax, fee, interest and/ or penalties known by the Collector to be due or estimated by the Collector, after consideration of all information within the Collector' s knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this Chapter.

4. 10.230. Tax Assessment— Notice Requirements.

The notice of assessment shall be served upon the person liable for the tax under this Chapter either by personal delivery, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Collector for the purpose of receiving notices provided under this Chapter; or, should the person have no address registered with the Collector for such purpose, then to such person' s last known address. For the purposes of this section, a service by mail is complete at the time of deposit in the United States mail.

4. 10.240. Appeal Procedure.

Any taxpayer aggrieved by any decision of the Collector with respect to the amount of tax, fee, interest and penalties, if any, due under this Chapter may appeal to the City manager by filing a written appeal with the City Clerk of the Redding City Council within fifteen ( 15) calendar days of the mailing of the decision or determination. The City Clerk shall schedule the appeal and give fifteen ( 15) days' written notice to the appellant of the time and place of hearing by serving the notice personally or by depositing in the United States Post Office in the City, postage prepaid, addressed as shown on the appeal papers or, if none, such other address as is known to the City or, absent any address, by publication in a newspaper of general circulation in the City. The City Manager shall have authority to determine all questions raised on such appeal. The determination Packet Pg. 432 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) of the City Manager shall be final.

4. 10.250. Conviction for Chapter Violation— Taxes not Waived.

The conviction and punishment of any person for failure to pay a required tax, fee, penalty and/ or interest under this Chapter shall not excuse or exempt such person from any civil action for the amounts due under this Chapter. No civil action shall prevent a criminal prosecution for any violation of the provisions of this Chapter or of any state law requiring the payment of all taxes.

4. 10. 260. Violation Deemed Misdemeanor.

Any person who violates any provision of this Chapter or who other than by a sworn statement, knowingly or intentionally misrepresents to any officer or employee of the City any material fact herein required to be provided is guilty of a misdemeanor punishable as provided in Chapter 1. 12 of the Redding Municipal Code. A person who on a sworn statement states as true a material fact that he or she knows to be false is guilty of perjury.

4. 10. 270. Actions to Collect.

The amount of any tax, fee, penalty and/ or interest imposed pursuant to this Chapter shall be deemed a debt owed to the City. An action may be commenced in the name of the City in any court of competent jurisdiction, for the amount of any delinquent tax, fees, penalties and interest thereon.

4. 10. 280. Remedies Cumulative.

All remedies prescribed under this Chapter shall be cumulative and the use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof.

4. 10.290. Amendment.

As required by Article XIIIC of the California Constitution, any amendment that increases the maximum rates of tax beyond the levels authorized in Section 4. 10. 050 above shall not take effect unless approved by a vote of the People. The City council may, by resolution, implement a tax under this Chapter in any amount or at any rate that does not exceed the maximum rates set forth in Section 4. 10. 050.

4. 10. 300. Other Taxes and Fees.

Except as provided herein, persons required to pay a tax for transacting and carrying on any business under this Chapter shall not be relieved from the payment of any license tax, permit, charge, assessment, or fee for the privilege of doing such business required under other laws or regulations of the City, and shall remain subject to the provisions of such other laws and regulations.

Packet Pg. 433 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses)

4. 10.310. Revenue Collected.

The revenue collected as a result of this Chapter can be spent for unrestricted general revenue purposes.

Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance. The People of the City of Redding hereby declare that they would have passed this Ordinance and every section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or invalid.

Section 4_ Effective and Operative Dates. This ordinance shall take effect ten ( 10) days after the election result is certified as provided by Elections Code section 9127, but the taxes imposed by this ordinance shall take effect only when and to the extent implemented by resolution of the City Council.

Section 5. Certification; Publication. Upon approval by the voters, the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law.

Date of Certification: City of Redding City Clerk
Packet Pg. 434 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) Exhibit B
Notice of Election and Measure To Be Voted On

CITY OF REDDING

NOTICE OF MUNICIPAL ELECTION

AND MEASURE TO BE VOTED ON
NOTICE IS HEREBY GIVEN that a Municipal Election will be held in the City of Redding on Tuesday, November 8, 2018, at which there will be submitted to the voters the following measures:

BALLOT MEASURE#
Shall the City of Redding adopt a business tax on cannabis YES cultivation businesses up to $ 25 per square foot of cultivation area and on cannabis manufacturing, processing, laboratory testing, delivery, storage, distribution, and retail sale up to 10% NO of gross receipts, to enhance and maintain vital public safety services, reduce crime, and protect other general services with all funds to be spent for unrestricted general revenue purposes, generating approximately $750,000 annually?
Said Municipal Election has been consolidated with the Statewide General Election to be held in the City of Redding on November 8, 2018. The election precincts within the City of Redding for said Municipal Election shall be the regular election precincts established for said Statewide General Election, and the polling places and officers of election within the City of Redding for said Municipal Election shall be the same as those selected and designated or to be selected and designated for said Statewide General Election.

NOTICE IS FURTHER GIVEN pursuant to Article 4, Section 9282 of the Elections Code of the State of California, the legislative body of the City of Redding, or any member or members of the legislative body authorized by the body, or any individual voter who is eligible to vote on the measure or bona fide association of citizens, or any combination of voters and associations, may file a written argument, not to exceed 300 words in length, accompanied by the printed name( s) and signature( s) of the person( s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, for or against the City measure.

NOTICE IS FURTHER GIVEN that, based upon the time reasonably necessary to prepare and print the arguments and sample ballots for the election, the City Clerk has fixed July 9, 2018, by 12: 00 p.m., as the date after which no arguments for or against the City measure may be submitted to the Clerk for printing and distribution to the voters as provided in Article 4.

Packet Pg. 435 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses) Arguments shall be submitted to the City Clerk, accompanied by the printed name( s) and signature( s) of the person( s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument, at the Redding City Hall, 777 Cypress Avenue, Redding, California. No more than five signatures may appear on the argument.

NOTICE IS FURTHER GIVEN that the City Clerk of the City of Redding has determined that rebuttal arguments, not to exceed 250 words in length, as submitted by the authors of the opposing direct arguments, may be filed with the City Clerk by July 19, 2018, by 12:00 p.m., accompanied by the printed names( s) and signature( s) of the person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers. No more than five signatures may appear on the rebuttal.

NOTICE IS FURTHER GIVEN that any ordinance, impartial analysis, or direct argument filed under the authority of the Elections Code will be available for public examination in the City Clerk' s office between the hours of 8: 00 a. m. and 5: 00 p. m., from July 10, 2018, to July 19, 2018. Any rebuttal argument filed under the authority of the Elections Code will be available for public examination in the City Clerk' s Office between the hours of 8: 00 a. m. and 5: 00 p.m., from July 20, 2018, to July 30, 2018.

The polls will be open on Election Day between the hours of 7: 00 a. m. and 8: 00 p. m.

Pamela Mize
Clerk of the City of Redding
City Elections Official
Dated:

Publish: GC 36933 publication
Packet Pg. 436 Attachment: Reso 2018-071 - Cannabis Business General Tax (9.2(b)--Resolution Increasing Business Tax on Cannabis Businesses)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution to continue the existing business tax on cannabis businesses indefinitely without modification to tax rates.

Fiscal Impact
The proposed resolution continues existing taxes on cannabis businesses without modification.

As such, there is no appreciable fiscal impact from the status quo.

Alternative Action
An alternative action to the recommendation is to decline to adopt the proposed resolution. This would put the continued requirement to pay cannabis business taxes into question.

Background/Analysis
On November 6, 2018, the electorate voted to approve a business tax on cannabis businesses within the City of Redding. The City Clerk certified the results of the election on December 4, 2018, and adopted Ordinance No. 2597. The tax on cannabis businesses went into effect on that date.

Redding Municipal Code 10.41.050 authorizes cannabis business taxes to be imposed by resolution. That section further states that, when such taxes are imposed, they shall remain at the established tax rates for a minimum period of one year. This is intended to provide the taxed cannabis businesses some certainty and to avoid frequent (i.e., quarterly, monthly) variations in the tax rates.

MEETING DATE: February 4, 2020
ITEM NO. 4.14(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.14(a) - Resolution Continuing Business Tax on Cannabis Businesses Barry DeWalt, City Attorney
Packet Pg. 437 Attachment: Previous Staff Report - February 4, 2020, Item 4.14(b) - Resolution to Continue Cannabis Business Tax (9.2(b)--Resolution Report to Redding City Council January 27, 2020
Re: 4.14(b)--Business Tax on Cannabis Businesses Page 2 In order to put the cannabis tax on the ballot, the City Council (Council) adopted Resolution No. 2018-071. That resolution set the date for the general election and also established the amount of the tax which would be imposed for the first year if the ballot measure was approved. This is consistent with the requirement in RMC 10.41.050 that the tax rates remain in effect for a minimum period of one year. It was not intended to suggest that the tax would cease to apply after the lapse of the one-year period.

To avoid all doubt on that issue, the proposed resolution makes clear that the existing tax rates are to continue in effect until such time as the Council makes changes to the tax rate by resolution. Ordinance No. 2597 sets the maximum tax rates that could be imposed on cannabis businesses. The City Council is granted authority by Ordinance No. 2597 to impose tax rates that are equal to or below the maximum tax rate established by Ordinance No. 2597.

The existing tax rates appear to be reasonable. They provide the intended source of tax revenue while, at the same time, do not appear overly burdensome on the affected cannabis business. To that end, it is recommended that no changes be made to the tax rates at this time.

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

Attachments
Resolution
Packet Pg. 438 Attachment: Previous Staff Report - February 4, 2020, Item 4.14(b) - Resolution to Continue Cannabis Business Tax (9.2(b)--Resolution

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Accept report regarding a City of Redding-staffed model for operations and maintenance of the Redding Sports Park (Park);
(2) Direct staff to continue operations of the Park until the end of Fiscal Year 2026-27; and (3) Adopt Resolution approving and adopting the 68th Amendment to City Budget Resolution No. 2023-060 appropriating $118,170 for Fiscal Year 2024-25 for the addition of $15,000 in Operating, Materials and Supplies and the following new positions to manage daily operations at the Park: one new Recreation Supervisor; eight Recreation Crew Supervisors; ten Recreation Leaders; one Recreation Coordinator; and one Gardener position.

Fiscal Impact
The 21 new Redding Sports Park (Park) positions equate to 11.75 full time equivalents (FTE).

The salary and benefit cost for the new positions and $15,000 for operations and maintenance for the remainder of Fiscal Year (FY) 2024-2025 is estimated to be $118,170. These positions will be partially funded with existing appropriation amounts within the Community Services’ Redding Sports Park Division’s personnel account budgets ($20,000 full time, $40,000 part time).

The requested annual Park operating budget was developed using current known expenses and planned expansions of staffing, maintenance, and programming. The revenue projections are conservative estimates based on current business trends and revenue data observed over the four months staff has operated the Park. The overall budget request for FY 2025-26 is $965,000 and $1,010,250 for FY 2026-27. The Park will require an operational subsidy in both years based on the conservative revenue projection. Year two projections improve with additional activities planned, such as competitive volleyball, in-house tournaments, special events, and leagues.

However, these projections are based solely on park operations activity without a concessionaire.

MEETING DATE: March 4, 2025
ITEM NO. 9.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(a)--Consider long-term options for Redding Sports Park operations.

Travis Menne, Director of
Community Services
Packet Pg. 439
Report to Redding City Council February 27, 2025
Re: 9.6(a)--Consider Long-Term Options for Redding Sports Park Operations Page 2 The budget accounts for a baseline in-house concessions model similar to the Redding Aquatic Center. Incorporating restaurant operations will improve revenues, but the timing and amounts are unknown and will depend on future contract negotiations, should the City of Redding (City) bring in a concessionaire.

The budget below shows the request for FY’s 2025-26 and 2026-27.

Item FY 2025/26
Budget
FY 2026/27
Budget
Recreation (RSP) Staff $591,100 $620,650
Maintenance Staff $126,500 $132,600
Administrative Staff $15,000 $15,750
O&M Materials $60,000 $62,500
Contracts (HVAC, Security, Pest, Fire) $30,000 $31,500
Utilities (Gas, Water, Power, Sewer, Trash) $115,000 $118,500 Supplies (concessions, janitorial, office) $25,000 $26,250 Bank Service Fees $2,400 $2,500
Total Expenses $965,000 $1,010,250
Total Revenue (-) $552,000 $727,200
Operational Subsidy $413,000 $283,050
Alternative Action
The City Council (Council) could choose not to move forward with this long-term option at this time or provide an alternate direction to staff. If additional funding for Park operations is not approved, keeping the facility open into April 2025 will be problematic as Redding Aquatic Center staff temporarily assigned to the Redding Sports Parks will return to other recreational duties.

Background/Analysis
After the Community Services Advisory Commission unanimously recommended that the Council direct staff to develop a model for City staff to operate the Park, staff presented the following options to Council at their February 4, 2025 meeting:

1. Develop and issue a Request for Proposals (RFP) for third-party operations of the Park;

2. Develop a model for a City-run facility; or

3. Explore shuttering or selling the facility.

At that time, the Council determined that staff would develop a City-operated facility model and return for consideration of the associated budget implications. Additionally, Council directed staff to issue a press release to the community soliciting options and ideas for alternative approaches and partnerships. To date, that effort has not yielded any actionable input for operations but presented options for concessions.

Since October 1, 2024, the current model has been in place and is generally well-received by existing user groups. Staff and community partners have found success with tournaments on the fields and in the field house, generating near-normal levels of activity and satisfying most user groups. In the proposed model, the City would hire a full-time Recreation Supervisor to run the Packet Pg. 440
Report to Redding City Council February 27, 2025
Re: 9.6(a)--Consider Long-Term Options for Redding Sports Park Operations Page 3 facility as the on-site manager. The Supervisor will be charged with mapping the available business avenues for the facility with the goal to achieve operational sustainability. These efforts will come in the form of new and expanded recreational offerings, events, grants, reallocation of existing Recreation Division programs, utility cost-savings, sponsorships, and more. Additional, new staff includes a Gardener in the Parks Division for on-site maintenance. Other staff positions are existing authorized positions in the Recreation Division, but their costs specific to the Park are included in the overall annual cost. Hiring a full-time facility manager will allow staff to expand capacity and work toward obtaining supplemental funding to reduce any future capital improvement costs.

The significant outstanding issue is the degraded condition of the facility and sourcing the funds required for improvements. Based on other facility examples and recent public engagement, it is unlikely that an outside source or third-party operator will wholly fund the repairs, and the City may need to fill gaps creatively through alternate sources. Funding sources may include but are not limited to additional sponsorships, donations, grants, or the use of the City’s General Fund.

Overall, if funding sources to support a long-term, Park business plan are not identified by the end of FY 2026-27, the Park may need to close.

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

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Resolution
PreviousStaff Report - August 20, 2024, item 9.6(a) - Short Term Operations Previous Staff Report - July 29, 2024, item 3.1 - Termination (C-0458) Packet Pg. 441
RESOLUTION NO. 2025-____
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 68th AMENDMENT TO CITY BUDGET RESOLUTION NO. 2023-060 APPROPRIATING $118,170 FOR FISCAL YEAR 2024-25 FOR THE ADDITION OF $15,000 IN OPERATING

MATERIALS AND SUPPLIES AND THE FOLLOWING NEW POSITIONS WITHIN THE REDDING SPORTS PARK: ONE NEW RECREATION SUPERVISOR, EIGHT

RECREATION CREW SUPERVISORS, TEN RECREATION LEADERS, ONE

RECREATION COORDINATOR, AND ONE GARDENER POSITION, TO MANAGE

DAILY OPERATIONS AT THE PARK

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

FISCAL YEAR 2023-24

FUND DIVISION DESCRIPTION INCREASE DECREASE
101 1099 Redding Sports Park $118,170
THAT account titles and numbers requiring adjustments by this Resolution are as follows:

USE SOURCE

OF FUNDS OF FUNDS
Increase(Decrease) Beginning Fund Balance
101-1726-2910000-00000 $ 118,170
Increase(Decrease) Expenditures
101-1726-4900110-00000 Full Time Salaries & Wages (legacy) 24,000 101-1726-4900120-00000 Part Time Salaries & Wages (legacy 40,000 101-1726-4001001-00000 Full Time Regular 37,630
101-1726-4002011-00000 Part Time Regular 89,780
101-1726-4009001-00000 Worker's Compensation 7,310
101-1726-4009031-00000 Health Insurance Employer 10,710 101-1726-4009011-00000 CalPERS Employer 14,320
101-1726-4009071-00000 Social Security Employer Tax 5,570 101-1726-4009041-00000 Medicare Employer 1,850
101-1726-5125001-00000 Operating Materials & Supplies 15,000 $ 182,170 $ 182,170
PERSONNEL FY 2024-25
1 Gardener (Full Time) 1 FTE
1 Recreation Supervisor I (Full Time) 1 FTE
10 Recreation Leader (Part Time) 5 FTE
8 Recreation Crew Supervisor (Part Time) 4 FTE
1 Recreation Coordinator I (Part Time) .75 FTE
Packet Pg. 442 Attachment: ^Resolution [Revision 1] (9.6(a)--Consider Long-Term Options for Redding Sports Park Operations) THAT the purpose is to appropriate $182,170 for fiscal year 2024-25 for the addition of the following new positions within the Redding Sports Park: one new Recreation Supervisor, eight Recreation Crew Supervisors, ten Recreation Leaders, one Recreation Coordinator, and one Gardener position, to manage daily operations at the Park.

I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 4th day of March, 2025, and was duly adopted at said meeting by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

JACK MUNNS, Mayor
ATTEST: FORM APPROVAL:

SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney Packet Pg. 443 Attachment: ^Resolution [Revision 1] (9.6(a)--Consider Long-Term Options for Redding Sports Park Operations)

CITY OF REDDING

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

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

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

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

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

MEETING DATE: August 20, 2024
ITEM NO. 9.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(a)--Consideration of Short-Term Operations Plan Options for the Redding Sports Park
Travis Menne, Director of
Community Services
Packet Pg. 444 Attachment: PreviousStaff Report - August 20, 2024, item 9.6(a) - Short Term Operations (9.6(a)--Consider Long-Term Options for Redding Report to Redding City Council August 15, 2024
Re: 9.6(a)--Short-Term Operations for the Redding Sports Park Page 2 Background/Analysis
At their meeting on July 29, 2024, the Council unanimously voted to terminate the Sports Park Lease Agreement (C-0458) after receiving a notice of surrender from Big League Dreams, effectively closing the Sports Park. During that meeting, the Council directed staff to return with options for short-term operations of the Redding Sports Park (Park). Since then, City staff has met with nine organizations representing teams, leagues, and tournament directors about their groups' present and future needs at the Park. These groups provided key insights into operations and the unmet needs of the Park users as staff collected needed data points to plan for nearnormal levels of service at the Park. Staff included the representatives from Shasta Regional Soccer Association (SRSA) in multiple meetings with user groups to gather information and provide consultation. Additionally, staff met with SRSA several times and toured the facility to gather operational data. After this process, the City and SRSA concluded that the City is best suited for operating the Park in the immediate term.

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

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

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

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

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

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Packet Pg. 445 Attachment: PreviousStaff Report - August 20, 2024, item 9.6(a) - Short Term Operations (9.6(a)--Consider Long-Term Options for Redding Report to Redding City Council August 15, 2024
Re: 9.6(a)--Short-Term Operations for the Redding Sports Park Page 3 Attachments
Previous Staff Report - July 29, 2024
Packet Pg. 446 Attachment: PreviousStaff Report - August 20, 2024, item 9.6(a) - Short Term Operations (9.6(a)--Consider Long-Term Options for Redding

CITY OF REDDING

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

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

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

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

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

Travis Menne, Director of
Community Services
Packet Pg. 447 Packet Pg. 5 Attachment: Previous Staff Report - July 29, 2024, item 3.1 - Termination (C-0458) (9.6(a)--Consider Long-Term Options for Redding Sports Park Report to Redding City Council July 26, 2024
Re: 3.1--Terminate Contract with Big League Dreams Redding, LLC Page 2 Background/Analysis
In 2001, the City and BLD Redding executed a lease agreement (Agreement) for the operation and maintenance of the Park. In 2004, the Park was opened and the start of the 35-year lease term began. The agreement conditions require BLD to pay monthly lease payments equivalent to six percent of gross receipts after the first three years. BLD paid over $950,000 in lease payments through May 2019. At that point, BLD fell behind in its payments compounded by COVID restrictions which closed the Park for almost a year. In August 2022, TC Sports acquired all nine BLD facilities and took over operations.

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

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

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

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

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

The notice was issued pursuant to Sections 17.a.i (failure to pay rent), 17.a.iv (default under Packet Pg. 448 Packet Pg. 6 Attachment: Previous Staff Report - July 29, 2024, item 3.1 - Termination (C-0458) (9.6(a)--Consider Long-Term Options for Redding Sports Park Report to Redding City Council July 26, 2024
Re: 3.1--Terminate Contract with Big League Dreams Redding, LLC Page 3 related agreements) and 17.a.v (other default). The Agreement gives BLD 10 days to cure the failure to pay rent and 30 days to cure most other failures. BLD has since failed to make payment within the 10-day period.

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

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

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

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

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

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

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

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

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Notice of Surrender - BLD Redding 07-25-24
C-0458_BLD Lease
C-0458_BLD Lease_Amend 1
C-0458_BLD Lease_Amend 2
C-0458_BLD Lease_Amend_3
C-0458 Letter of Agreement
C-0458 - First Amendment - 2023 - Big League Dreams USA Packet Pg. 449 Packet Pg. 7 Attachment: Previous Staff Report - July 29, 2024, item 3.1 - Termination (C-0458) (9.6(a)--Consider Long-Term Options for Redding Sports Park July 25, 2024

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

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

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

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

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

Thank you,
Justin J. Dertinger
Packet Pg. 8
Attachment: ^Notice of Surrender - BLD Redding 07-25-24 (3.1--Terminate Contract with Big League Dreams Redding, LLC) Packet Pg. 450 Attachment: Previous Staff Report - July 29, 2024, item 3.1 - Termination (C-0458) (9.6(a)--Consider Long-Term Options for Redding Sports Park