Agenda
Regular Meeting
Redding City Council
Council Chambers
777 Cypress Avenue, Redding, CA
March 18, 2025
6:00 PM
1. CALL TO ORDER - MAYOR JACK MUNNS
A. Pledge of Allegiance
B. Invocation - Colin Duffy, Redding Nazarene Church
C. Roll Call
2. PRESENTATIONS
2A. Presentation of Mayor’s Certificate of Recognition honoring The Community Foundation of the North State’s 25 th Anniversary and its over $100 million in impact over two decades working to enrich North State communities.
2B. Presentation by Danny Orloff, Visit Redding Tourism Marketing Director, providing a quarterly report regarding tourism marketing and promotion efforts for the City of Redding.
3. PUBLIC COMMENT - for non-agendized matters within the city’s jurisdiction.
PURSUANT TO THE BROWN ACT, CITY COUNCIL CANNOT TAKE ACTION ON PUBLIC
COMMENT ITEMS
The City Council will allocate up to a maximum of three minutes per speaker for 30 minutes total, at the beginning of the meeting for Public Comment for non -agendized matters within the City’s jurisdiction.
The Mayor will determine the order of the speakers. If 30 minutes is not adequate to accommodate all of the individuals who have submitted a Speaker Request Form to the City Clerk, the Council will trail this item to the end of the open session agenda. The remaining speakers will address the City Council at that time.
If anyone wishes to address the City Council on any item considered at this meeting before or during Council’s consideration of that item, please fill out a blue Speaker Request Form, located in the lighted alcoves at the back of the Council Chambers, and submit it to the City Clerk. The City Council will allocate up to a maximum of three minutes per speaker for each agenda item. Staff reports are available on-line at the City’s web site at www.cityofredding.gov or in the Public View binder located on the podium at the north side of the Chambers.
PLEASE SILENCE YOUR CELL PHONES. THANK YOU.
Redding City Council March 18, 2025
4. CONSENT CALENDAR
The Consent Calendar contains items considered routine and/or which have been individually scrutinized by City Council Members an d are anticipated to require no further deliberation. If a member of the public wishes to address an item on the Consent Calend ar, please fill out a Speaker Request Form and submit it to the City Clerk before the Consent Calendar is considered . It shall be the prerogative of any Council Member, before the Consent Calendar is acted upon, to: (1) comment on an item; (2) respond to any public comment on an item; (3) request the record reflect an abstention or nay vote on an item; or (4) remove an item and p lace it on the Regular portion of the agenda for delivery of a staff report and/or an extended discussion or deliberation.
4(a). Approve City Council Minutes: Special Meeting of March 3, 2025, The Peaks Subdivision Project Site Tour.
4(b). Accept City of Redding Accounts Payable Register Nos. 7 and 8.
4.1(a). Accept update regarding the proclamation declaring a local emergency due to flooding and, pursuant to Public Contract Code 20168 and 22050(c)(1), make a determination by a four -fifths vote that t here is a need to continue the emergency.
4.1(b). Authorize the Mayor to send a letter of support for Assembly Bill 476 (Gonzalez) which enhances enforcement measures against copper wire theft.
4.4(a). Authorize and approve the following:
(1) Accept the 2024 City of Redding General Plan/Housing Element Annual Progress Report; and
(2) Direct staff to forward the document to the Governor’s Office of Planning and Research, and the State of California Department of Housing and Community Development.
4.6(a). Authorize the following actions relative to the City of Redding Whale Tail Grant:
(1) Accept the California Natural Resources Agency – California Coastal Commission Whale Tail Grant in the amount of $50,000;
(2) Authorize the City Manager, or designee, to execute the grant agreement and associated documents for the California Natural Resources Agency – California Coastal Commission Whale Tail Grant FY 2024 -25 project; and
(3) Adopt Resolution approving and adopting the 71st Amendment to Budget Resolution No. 2023 -060 appropriating $50,000 in state funding for the California Natural Resources Agency – California Coastal Commission Whale Tail Grant.
Redding City Council March 18, 2025
4.9(a). Authorize and approve the following:
(1) Adopt Resolution ratifying the application for, and authorizing the acceptance of funding from the California Highway Patrol’s Cannabis Tax Fund Grant Program, if awarded, in the amount of $288,974; (2) Authorize the City Manager, or designee, to execute said contract and any associated amendments; and
(3) Authorize the City Manag er to administratively appropriate the grant funds.
4.11(a). Authorize and approve the following relative to Contract Purchase Agreement No. 225 Water Utility Warehouse Items and Fire Hydrants:
(1) Approve increased expense under the contract with Pace Supply Corporation for an annual evaluated price of $400,000;
(2) Authorize the Purchasing Officer to extend the bid award annually with Pace Supply Corporation through March 31, 2028, if mutually agreeable, with all terms and conditions remaini ng the same and price adjustments in direct proportion to a Producer Price Index; and
(3) Authorize the City Manager, or designee, to approve an additional $50,000 to the contract award as a contingency per fiscal year.
4.11(b). Authorize and approve the following relative to the City of Redding’s COVID - 19 Economic Stimulus Package projects:
(1) Accept the Project Status Report; and
(2) Ratify approval of City Manager award for the Upgrade HVAC at City Hall (C19-M-03) to Jessee Heating and Air , Inc. in t he amount of $480,763.
4.11(c). Authorize and approve the following relative to the South Street Water Main at Railroad Emergency Replacement Project (Project):
(1) Accept update regarding the project;
(2) Approve an increase to the budget for construction in the amount of $340,000, bringing the total project budget to $1,380,000; and (3) 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.
4.11(d). Approve an incr ease to the Churn Creek Lift Station Rehabilitation Project’s (Bid Negotiation No. 5452) construction contingency budget in the amount of $65,000, bringing the construction contingency total to $262,000 for the project.
RECOMMENDATION: ACCEPT, ACKNOWLEDG E, ADOPT, APPROVE,
AND/OR AUTHORIZE ALL ITEMS ON THE CONSENT CALENDAR.
Redding City Council March 18, 2025
6. PUBLIC HEARINGS
A court challenge to action taken by the City Council on any project or decision may be limited to only those issues raised during the public hearing or in writt en correspondence delivered to the City Council during, or prior to, the public hearing.
Electric Utility
6.1. Joint Public Hearing and resolution to consider authorization of the issuance of bonds to finance the significant replacement and upgrades to overhead and underground infrastructure systems, enhancements and construction at the Redding Power Plant.
Recommendation:
Conduct a Joint Public Hearing with the Redding Joint Powers Financing Authority and, upon conclusion:
(1) Adopt Resolution:
(a) Approving the issuance by the Redding Joint Powers Financing Authority of its Electric System Revenue Bonds, 2025 Series A, in an amount not to exceed $70 million to finance the 2025A Electric System Project; (b) Authorizing the execution and delivery of an I nstallment Sale Agreement, a Purchase Contract, and a Continuing Disclosure Agreement; (c) Approving the form and distribution of the Official Statement; and (d) Authorizing the execution of documents and the taking of all necessary actions relating to the financing.
9. REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,
BOARDS, COMMISSIONS AND COMMITTEES
Audit Committee – Mayor Jack Munns and Vice Mayor Mike Littau 9A. Consider Reports from Independent Auditors for the year ended June 30, 2024.
Recommendation:
Approve the Audit Committee’s recommendation to a ccept the Statement on Auditing Standards AU-C 260 Letter and the draft copy of the Single Audit Reports for the year ended June 30, 2024.
City Manager
9.1(c). Consider accepting report regarding tobacco retailing in the City of Redding.
Recommendation:
Accept the report on tobacco retailing and provide direction to staff regarding next steps.
Redding City Council March 18, 2025
Assistant City Manager
9.2(b). Oral Presentation regarding City of Redding Housing Division Programs.
Recommendation:
Accept an oral presentation from the Community Development Manager regarding the City of Redding’s Housing Division programs and special needs population activities.
Community Services
9.6(b). Oral report regarding the Oregon Gulch Open Space in the City of Redding.
Recommendation:
Informational item only.
Finance
9.10(a).
Consider acceptance of the City of Redding Annual Comprehensive Financial Report for the year ended June 30, 2024.
Recommendation:
Accept the City of Redding Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024.
9.10(b).
Consider City of Redding Mid-Year Budget Review and Associated Resolution.
Recommendation:
Accept the City of Redding’s Fiscal Year 2024 -25 Mid-Year Budget Report; and adopt Resolution approving and adopting the 70th Amendment to City Budget Resolution No. 2023 -060 increasing appropriations by $3,579,340 for Fiscal Year 2024-25.
Redding City Council March 18, 2025
Personnel
9.15(a).
Consider adoption of an Uncodified Ordinance authorizing an amendment to the City of Redding's contract with California Public Employees' Retirement System (CalPERS) to allow Unrepresented Safety and Non -Safety Employees and Elected Officials to share additional costs of the retirement benefit.
Recommendation:
Authorize and approve the following:
(1) Adopt uncodified Ordinance No. 2675 to amend the Retirement Contract (C- 99) between the City of Redding (City) and CalPERS to adopt Government Code Section 20516 (Employees Sharing Ad ditional Cost) for Unrepresented Safety and Non-Safety Employees and Elected Officials;
(2) Authorize the Mayor to sign the contract for the City upon receipt of the final document from CalPERS;
(3) Authorize the City Clerk to sign the Certification of Co mpliance with Government Code Section 20516 (CON 500); and
(4) Authorize the City Clerk to sign the Certification of Compliance with Government Code Section 7507 (CON 12A).
11. COUNCIL TRAVEL REPORT(S)
City Council Member attendance at conference/meetings reimbursed at City expense. {Requirement of Assembly Bill 1234}
[A-050-060]
Information Only
12. SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS
FOR FUTURE CITY COUNCIL MEETINGS
13. ADJOURNMENT
Redding City Council March 18, 2025
Pursuant to the Brown Act, non -confidential materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for inspection during normal business hours at the Office of the City Clerk, 3 rd Floor, City Hall, 777 Cypress Avenue, Redding, California.
City Council Meetings will be televised live on Shasta Community Access Channels via Charter/Spectrum Cable channel 181 , and will be rerun on Thursday at 12:30 p.m. during the week in which the meeting is held. Additionally, the meeting can be viewed online at the following: https://www.shastaartscouncil.org/scactv; and the City’s YouTube Channel https://www.youtube.com/cityofredding. Video of the City Council meetings can also be viewed on the City’s web site at http://www.cityofredding.gov/. Open the Services tab, and select City Council Videos.
In compliance with Title II of the Americans with Disabilities Act, the City of Redding will make available to persons with disabilities modifications or accommodations including auxiliary aids or services necessary to participate in public meetings. A person needing assistance should contact the Redding City Clerk by telephone at (530) 225 -4447 or in person, or by mail at 777 Cypress Avenue, 3 rd Floor, Redding, California 96001 at least three (3) working days in advance.
The City of Redding will ensure that no person shall be ex cluded from participation in, denied the benefits of, or otherwise be subjected to discrimination under any of its projects, activities, services, or business opportunities on the basis of race, color, national origin, age, sex, or disability, as afforded by Title VI of the Civil Rights Act of 1964 and related statutes as amended. All persons, regardless of their citizenship status, are covered under this regulation.
Questions, complaints, or requests for accommodations or additional information may be forwarded to the ADA & Title VI Coordinator at 777 Cypress Avenue, Attn: Personnel Dept., Redding, California 96001, Phone (530) 225-4065.
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Presentation of Mayor’s Certificate of Recognition honoring The Community Foundation of the North State’s 25th Anniversary and its over $100 million in impact over two decades working to enrich North State communities.
Attachments
^Certificate of Recognition
MEETING DATE: March 18, 2025
ITEM NO. 2A
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 2A--Mayor's Certificate of Recognition honoring The Community Foundation of the North State's 25th Anniversary.
Jack Munns, Mayor
Packet Pg. 8
Packet Pg. 9
Attachment: ^Certificate of Recognition (2A--Mayor's Certificate of Recognition honoring Community Foundation's 25th Anniversary)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Presentation by Danny Orloff, Visit Redding Tourism Marketing Director, providing a quarterly report regarding tourism marketing and promotion efforts for the City of Redding.
MEETING DATE: March 18, 2025
ITEM NO. 2B
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 2B--Presentation by Danny Orloff of Visit Redding regarding Redding tourism updates.
Travis Menne, Director of
Community Services
Packet Pg. 10
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve City Council Minutes: Special Meet ing of March 3, 2025 , The Peaks Subdivision Project Site Tour.
Attachments
^Unofficial Minutes - Special Meeting of March 3, 2025, The Peaks Subdivision Project Tour MEETING DATE: March 18, 2025
ITEM NO. 4(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4(a)--Approve City Council Minutes.
Sharlene Tipton, City Clerk
Packet Pg. 11
429
03/03/2025
Unofficial Minutes Redding City Council, Special Meeting Project Site Walking Tour of The Peaks Subdivision
Corner of Spinnaker Drive and Keel Court
Redding, CA 96003
March 3, 2025, 4:30 PM
The meeting was called to order at 4:38 p.m. by Mayor Jack Munns with the following Council Members present: Tenessa Audette, Dr. Paul Dhanuka, Mike Littau, and Erin Resner.
Also present: City Manager Barry Tippin, City Attorney Christian Curtis, Assistant City Attorney Gretchen Stuhr, Assistant City Manager Steve Bade, Community Services Director Travis Menne, Development Services Director Jeremy Pagan, Fire Chief Jerrod Vanlandingham, Public Works Director Michael Webb, Police Chief Brian Barner, and City Clerk Sharlene Tipton.
2. Project Site Walking Tour for The Peaks Subdivision, beginning at the corner of Spinnaker Drive and Keel Court.
Mayor Munns provided a brief overview of what to expect on the walking tour of the undeveloped project area , noted that Sheryl Bullock would be the neighborhood spokesperson/guide, and stated that there would be minimal public comment.
City Attorney Curtis and City Manager Tippin explained th at this is a different type of meeting as it is a walking tour, and the Council would remain together so they can all hear the same information at the same time to comply with Brown Act requirements.
Several neighbors expressed safety concerns regardin g lack of ingress/egress, noting that it was an issue during the 2018 Carr Fire. They also expressed concerns regarding the environment, and increased congestion in addition to already congested arterial streets, not only for their neighborhood, but surrounding neighborhoods as well.
The Council and staff answered several project questions from neighbors.
The City Council did not take any legislative action as this was an informational meeting only.
ADJOURNMENT
There being no further business at the hour of 5:19 p.m., Mayor Munns declared the m eeting adjourned.
APPROVED:
_______________________________
Jack Munns, Mayor
ATTEST:
_______________________________
Sharlene Tipton, City Clerk
Packet Pg. 12
Attachment: ^Unofficial Minutes - Special Meeting of March 3, 2025, The Peaks Subdivision Project Tour (4(a)--Approve City Council Minutes)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept City of Redding Accounts Payable Register Nos. 7 and 8
Fiscal Impact
There is no fiscal impact to accepting the registers.
Alternative Action
The City Council could choose to not accept the registers and provide alternate direction to staff.
Background/Analysis
Attached are the Accounts Payable and Payroll Registers as follows:
Accounts Payable:
(1) Register No. 7 for the period January 1, 2025 – January 31 , 202 5, in the amount of $25,597.520.87; and Register No. 8 for the period February 1, 2025 – February 28, 2025, in the amount of $18,014,722.10.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
Accounts Payable Register Nos. 7 & 8
MEETING DATE: March 18, 2025
ITEM NO. 4(b)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4(b)--City of Redding Accounts Payable and Payroll Registers.
Greg Robinett, Director of
Finance/City Treasurer
Packet Pg. 13
Packet Pg. 14
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 15
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 16
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 17
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 18
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 19
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 20
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 21
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 22
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 23
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 24
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 25
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 26
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 27
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 28
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 29
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 30
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 31
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 32
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 33
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 34
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 35
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers) Packet Pg. 36
Attachment: Accounts Payable Register Nos. 7 & 8 (4(b)--Accounts Payable and Payroll Registers)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept update regarding the proclamation declaring a local emergency due to flooding and, pursuant to Public Contract Code 20168 and 22050(c)(1), make a determination by a four -fifths vote that there is a need to continue the emergency.
Fiscal Impact
Declaring the emergency could have a positive fiscal impact of an indeterminate amount as it will facilitate the recover y of the community and potentially receipt of emergency aid from the state, and possibly federal authorities if it becomes available. The total cost of the damage is still unknown - City of Redding (City) staff will continue to perform damage assessments.
Alternative Action
The City Council (Council) could choose not to confirm that conditions of a local emergency continue to exist. Under Public Contract Code section 22050(c)(1) the local emergency can only be terminated by a four-fifths vote of the Council. To that end, the Council’s prior determination of a local emergency will remain unless an affirmative vote of the Council is made to term inate the local emergency.
Background/Analysis
On February 2, 2025, a storm event arrived in the City, ultimately causing conditions to be beyond the immediate control of local resources, services, personnel, equipment, and facilities.
These winter st orms brought heavy rain to all areas of Shasta County which in turn caused a significant increase in releases from Shasta Dam resulting in localized flooding, water rescues, and damage to roadways, trail systems, storm water systems, and other infrastructure.
MEETING DATE: March 18, 2025
ITEM NO. 4.1(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.1(a)--Confirmation of Continued Local Emergency Due to Flooding Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 37
Report to Redding City Council March 12, 2025
Re: 4.1(a)--Confirmation of Continued Local Emergency Due to Flooding Page 2
Due to these events and weather conditions, a local emergency was proclaimed on February 11, 2025, and on February 18, 2025, the Council ratif ied this proclamation and will continue the declaration until such time that the threat of these storms has subsided, there is no longer an elevated risk to life and property, and the emergency restoration of facilities has been completed.
The local emergency was declared by the City Manager serving in his capacity as Director of Emergency Services under RMC 9. 12.030. The Proclamation of the Director of Emergency Services is attached.
The South Bonnyview Boat Launch access road remains closed due to the failed culvert. Staff has constructed a temporary access road for the boat launch. Staff believes that approx imately 200 feet of the overall 700 -foot-long 10 -foot diameter culvert is damaged. Staff is currently working with contractors and material suppliers for actual repairs of the failed culvert. The full extent of the damage is still unknown and will not be a ble to be determined until removal activities begin.
The Nur Pon Open Space is partially open. The flood waters damaged the bridges, kayak boat launch area, and trails. The majority of the walking loop will remain closed for an extended period. Repairs to Nur Pon Open Space will focus on the first walking bridge closest to the parking area, the bathrooms, the parking lot facility, and the kayak boat launch area of the park.
California Governors Office of Emergency Services (CalOES) has requested estimates for damages to both private and public sites. Staff will be meeting with CalOES to determine next steps and possible funding options.
Staff continues to monitor and identify other damaged areas to determine the level of repair necessary.
Environmental Review
This is not a project as defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• 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 - February 18, 2025, declaring local emergency Resolution No. 2025-011 - Declare Local Emergency with Proclamation Packet Pg. 38
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution by a four-fifths vote to confirm and ratify the Proclamation of the Director of Emergency Services declaring a local emergency and authorizing the City Manager to repair or replace pub lic facilities and procure the necessary equipment, services, and supplies for those purposes without solicitation of competitive bids in accordance with Public Contract Code 20168 and 22050.
Fiscal Impact
Adoption of the resolution could have a positiv e fiscal impact of an indeterminate amount as it will facilitate the recovery of the community and the receipt of emergency aid from state, and possibly federal, authorities if it becomes available.
Alternative Action
The City Council (Council) could ch oose not to adopt the resolution or provide alternate direction. Failure to adopt the resolution will result in a legal finding that the local emergency has ceased and will likely negatively impact the receipt of aid from state and/or federal authorities, and the City of Redding’s (City) ability to immediately repair or replace damaged infrastructure.
Background/Analysis
On February 2, 2025, a storm event arrived in the City of Redding, ultimately causing conditions to be beyond the immediate control of l ocal resources, services, personnel, equipment, and facilities. These winter storms have brought heavy rain to all areas of Shasta County which in turn have caused a significant increase in releases from Shasta Dam resulting in localized flooding, water rescues, and damage to roadways, trail systems, storm water systems, and other infrastructure. At this time, c ontinued high-water flows are expected with not all areas hav ing MEETING DATE: February 18, 2025
ITEM NO. 9.1(b)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.1(b)--Consider Resolution to confirm and ratify the City of Redding Proclamation declaring a local emergency due to flooding.
Barry Tippin, City Manager
Packet Pg. 254Packet Pg. 39
Attachment: Previous Staff Report - February 18, 2025, declaring local emergency (4.1(a)--Confirmation of Continued Local Emergency Due to Report to Redding City Council February 12, 2025
Re: 9.1(b)--Adopt Resolution to Confirm and Ratify the Proclamation Declaring a Local Emergency Page 2
been fully assessed. The current forecast calls for continued storms and additional snow and rainfall which could further exacerbate the damage and increase the difficulty of recovery efforts.
As the rain continues, the Bureau of Reclamation will be required to continue its high releases from Shasta Dam. There is potential for additional local flooding and infrastructure damage.
Due to these events and weather conditions, a local emergency was proclaimed on February 11, 2025, and it is recommended that the Council ratify this proclamation and continue the declaration until such time tha t the threat of these storms has subsided, there is no longer an elevated risk to life and property, and the emergency restoration of facilities has been completed.
The local emergency was declared by the City Manager serving in his capacity as Director o f Emergency Services under RMC 9.12.030. The Proclamation of the Director of Emergency Services is attached.
Pursuant to Government Code section 8630, the Proclamation is valid for seven days. As such, if the Council does not act to adopt a resolution whi ch confirms and ratifies the existence of a local emergency, the declaration of local emergency made under the Proclamation will lapse. A declaration of local emergency provides several benefits in time of emergency. Under Government Code section 8634, it permits a local agency to immediately promulgate orders and regulations necessary to protect the public health and safety. It further permits the State and local agencies to provide mutual aid to the City and makes the costs of such aid incurred by other agencies chargeable to the State. Lastly, the declaration of local emergency facilitates payment to the City by the State under the Disaster Assistance Act (Gov. Code section 8680 et seq.).
The resolution contains all the needed findings to continue the de claration of local emergency under the California Emergency Services Act (Government Code section 8550 et seq.). In the absence of action under Public Contract Code, the Council could declare an emergency under the California Emergency Service Act by a simple majority vote.
However, the resolution also seeks authorization under RMC 4.22.120 and Public Contract Code sections 20168 and 22050. As such, a fourth -fifths vote of the Council will be required to adopt the resolution. These sections provide author ity which the Government Code, addressed above, does not. Public Contract Code sections 20168 and 22050 collectively provide authority to repair or replace a public facility, and procure the necessary equipment, services and supplies for those purposes without competitive bidding. While notice and competitive bidding are very beneficial in non-emergency situations, these processes are entirely too untimely if we are to immediately protect the public health and safety by restoration of public services and fa cilities. This is necessary due to the immediate need to repair or replace the 120 -inch culvert that failed at the entrance to the Reginato Boat Ramp. This ramp serves as a critical entry point for river access for public safety agenc ies to effectuate river rescues and to access areas along the river that are otherwise inaccessible. Additionally, river guides and other river related businesses utilize this ramp extensively and prolonged closure will cause significant economic hardship as well as impeding life saving efforts by the Redding Police Department and the Shasta County Sheriff.
It should be noted that RMC 4.22.120 delegates authority to the City Manager to make a finding that the emergency will not permit the delay resulting from a competitive soli citation of bids and that immediate action is necessary to respond to the emergency. However, that authority is only valid for a period of seven days. By making this finding now by means of adoption of the resolution, the Council avoids the unfortunate cir cumstance whereby the immediate action sought by the City Manager to repair or replace public infrastructure will lapse absent an Packet Pg. 255Packet Pg. 40
Attachment: Previous Staff Report - February 18, 2025, declaring local emergency (4.1(a)--Confirmation of Continued Local Emergency Due to Report to Redding City Council February 12, 2025
Re: 9.1(b)--Adopt Resolution to Confirm and Ratify the Proclamation Declaring a Local Emergency Page 3
immediate, emergency Council meeting. In order to ensure Council oversight, RMC
4.22.120(C)(1) requires review of action under Public Contract Code sections 20168 and 22050 at every regular meeting until such time as the emergency ceases.
In summary, the resolution serves two important functions. It facilitates coordination with other public agencies assisting the City in respo nding to the local emergency and is a necessary precondition to receipt of state and federal aid. It also provides authority to the City to use its own resources in accomplishing repair or replacement of damaged public infrastructure in a timely and efficient manner while ensuring Council oversight of all such activity.
Environmental Review
This is not a project as defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• 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
^Emergency Declaration Flood of February 2025
^Resolution - Local Emergency Declaration 02-2025
Packet Pg. 256Packet Pg. 41
Attachment: Previous Staff Report - February 18, 2025, declaring local emergency (4.1(a)--Confirmation of Continued Local Emergency Due to SfILUTItJN tJ. Z{ 25- t}1
RESOLUTION Ct NFI IN G EXISTEl I E ( 7F A LOCAL EMER+ GEI T4CY HE A5, Gt vernment Code sectian 8642 provides that whenever a state cr Iocal emergency exists, the governing bcrdy ofthe local govemmental entity shall meet as soon as possible;; and WHE AS, Redding Municipal Code sections 9, 12. 03C1, and 14. 24. 02, generally empower the City Manager, asDirector of Emerg ncy Services, tc proclaimthe existenceor threaen d existenceof a localemergencywhentheCity is affectedor likely to beaffectedby apubliccalamityandtheCity Ccuncil is not in session5and
W IE AS, ReddingMunicipal Ccde section9.12.030(C) providesthat the decisicn of the City Managertt declarea locaZemergencymustberatified by theCity Gouncilwithin seven (7} calendardays of th City Manager's actionar it s iall haVeno furtherforceor effect; and WHEREAS, R dding Municipal Cade section 4.22.120 and P'ublic Contract Cade sectians20168 and 22050 allow the City Cauncil to e pend public monies withc ut competiti e solicitation when safeguarding life, health, ar safety wi11 nt t permit delay; nd EFtEA, the City M nager, as L}irector of Emergency `Serviceaof the City of Redding, praclaimed the existence of a local emergency, as defined in Government Code section 8558( c), within the City on the
11th
day of February, 2t?25, as evidenced by the Pr ciamation of the I irectflr of Emergenc Services attached and incarporated herein; and
E AS; theProclamationofthe Directorof EmergencyServicesdatedFebruary1l, 2025,was ser t to the County irector of Emergency Services on February 11, 2C}25; and WHE AS, conditions c#' extreme peril to the safety cf persansand prcperty have arisen within the City which were causedby flooding causedby severewinter storms which beganon February 2, 2 25, and
HEREAS, the flooding has continued through increasedreleasesfrom ShastaDam inundating and dan aging land, raads, trails and other facilities, in particular the callapse of a 120" culvert acr ssthe accessrc adt the Reginato Bcat Ramp whieh prc ides river accessto public s fety agencies, an F bruary 9, 025, atwhichtime theCity Councilof theCity of Reddingwasnrt in session; and E AS, thereis immediate needto repair tir replacethe 20" culvert that failed at the entrance to the Reginato Sc at Ramp as this ramp servesas a critical entry point fcr river accessfcr public s fety agencies tc effectuate river rescues and ta acce s areas along th river that are otherwise inaccessible.
Additionally, river guides and other river related businesses utilize this ramp extensively and prolanged closurewill causesignificantecanomichardshipaswell asimpedinglifesavingefforts by the R.edding Pc lice Departrnent and the Shasta Cuunty Sheriff; and
WHE AS, the Baard of upervisor"s for the County af Shastaratified a proclamation af a Local Emergency far hasta Caunty on February 1l, 2fl25, anci direeted that the prcclamation be sent tc the Governrr af the Stateof Californiaandthe Secretaryof the +Officeof EmergencyServicesrequestingthey proclaim the County c f Shasta to be in a state of emergency; and Packet Pg. 42
Attachment: Resolution No. 2025-011 - Declare Local Emergency with Proclamation (4.1(a)--Confirmation of Continued Local Emergency Due to W IE A, the conditions causedby the flc ading arebeyondthe cantrol af the services,personnei, equipment and facilities of the City of Redding, and
WHE A, theCityCcruncilherebyfindsthattheafQresaidconditiansof extremeperildid warrant and necessitate the proclam tion af the existence af a local emergency, 110W, THE F() , IT IS HE BY PRt CLAIIY ED AND ERED as follows:
1. The recitals s ated abave are true, correct, and are adopted herein.
2. The Prc clamation of the Directar t f Emergency Services dated February 11, 2025, is hereby confirmed and ratified.
3. That, pursuant to Government Code section 630{}, a local emergency withiz the meaning of Governrnent Ccde section 8558(c} exists within thejurisdictional limits of the City cf R dding.
4. That, pursuant to Public Contract Code section 20I68 and 22050, the public inter st nd riecessity d mand th immediate expenditure of public rr oney to safeguardlife, health and property, the1oca1 emergencywill n t permit a delayresulting from a ct mpetitive solicitationfcr bids; immediate acticn is necessaryto respondta the lccal emergency, and the City Manager is authcrized to repair or replace a public facility, take any directly related and immediate action required by the Iccal emergency;and procure the necessaryequipment, servicesand supplies for those purpt seswithout giving notice fcr bids tc let contracts,
5. That, pursuant to Public Contract Code section 22050( c( 1}, the tate of local ernergencyshall e deeTnedto continue tcrexist until its termination is proclairned by a resolutian adaptedby a fourth- fifths vote af the City Council.
6. That, pursuant to Government Code section 863{ e} and Fuhlic Contract ode section 22450( c}( 1); the City Cauncil shall review the need for continuing the lacal emergeneyat every regularly scheduledmeeting of the City Cauncil until the City Council terminatesthe local emergency:
I IE Y CERTIFY that the faregoing resaluticn was introduced and adopted at a regular meeting of the City Council f the City nf Redding on the 1Sth day af February, 2025, by the following votei A' i' ES: CQiTNCIL MEMBEIYS: - r. Dha auka, Littau, Resner, and Munns N? ES: CfJIJN+ CIi:. ME ERS. - Nane
ABSENT: COUN+ CTL lYIE ERS: - Au ette
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ABSTA l': COUI ICIL ME ERS. - Nane
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SHARLENE TIP' TI N, City Clerk CHRIS7C' I N M. CUR' IS, ity Attorney Packet Pg. 43
Attachment: Resolution No. 2025-011 - Declare Local Emergency with Proclamation (4.1(a)--Confirmation of Continued Local Emergency Due to A PR(}+ LAM TIC} l'd UF
Tx Dr eTc + F m re s r vrcEs c F
CITI' QF RET) DIN, CALIFC1Rl TIA
W EREAS, ReddingMunicipal {RMC} sectian9.12.030andRMC9.12.020providefor the preparationand carrying aut of plansfar the pratection af personsand property within the City 't the event af an emergency, and,
WHEPEAS, KMC secticn 9.12.t}30 statesthat the City Manageris the Director of Emergency Services and the ssistant ity Manageris the AssistantUirectar of ErnergencyS rvices,and, WHEREA,S;RMC-section9.12.t}30 empowerstheDirector carAssistantI3irectarof Emergency Servzcesta proclaitn the existence r threatenedexistenceof a local e nergencywhenthe City Ccuncit is not in se sion, and;
WFl"E1tEAS,theI3irectorof EmergencyServicesof theCity of Reddingdoesherebyfnd that conditians af extremeperil tc the safatyaf pers€nsandprcperty havearisenwithin the City of Redding, causedby flooding; which be anon the 2nd day of Febniary,2025 and; WHEREAS, thesec4nditiionsareor arelikely to be be ond the cantrot of the servicesy persontel, equipment,andfacilities of theCiiy of Redding,and; W IEREAS,theCityCouncilaf theCity of Reddingisnotin sessionandcannotimmediately be called inta session.
1VCtW, TH REFURL', IT IS HEREBY PRUC' A ELD, that a local emergency now exists throughoit the City cf Redding,and;
IT IS FII 2THER PRO` Z;AY112"ED ANTI l7R ERE that durin the existence af said laca[ ernergencythe pawers,functionsanddutiesof the emergencyorganizatianaf the City of Reddingshall bethoseprescribedbythestatelaw,byordinances,andYesolutionsof theCity t f Redding;andthatthis emergencyproclarnation shall expire 7 days after issuanceunlessconfirmed and ratified by the City Cauncil of the City csfRedding.
IN T' STIMCINY WH E+1JF, Z HEREUNT() SET MY HAND ANU C.A€ISE THE SEAL l) F HE ITY CIF PEDTIING TU I` E AFF' IXE1) TH S llt i AY( 1;' FEI R tIARY, 2025. a'i
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7 Packet Pg. 44
Attachment: Resolution No. 2025-011 - Declare Local Emergency with Proclamation (4.1(a)--Confirmation of Continued Local Emergency Due to
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the Mayor to send a letter of support for Assembly Bill 476 (Gonzalez) which enhances enforcement measures against copper wire theft.
Fiscal Impact
There is no direct fiscal impact on the General Fund as a result of sending the attached letter.
Alternative Action
The City Council could decline to authorize the Mayor to send the letter and provide direction to staff.
Background/Analysis
Copper wire theft has become a rampant and costly problem. It can cause serous disruptions to infrastructure such as streetlights , fire hydrants, manhole covers, electrical vehicle charging stations, backflow prevention devices, and other infrastructure. Criminals often target these public resources because of the high value of copper which results in extensive damage that can compromise public safety and creates high repair costs.
The financial burden of any copper theft that impacts City of Redding infrastructure falls on the taxpayers to repair and replace. Assembly Bill (AB) 476 provides much needed enforcement tools to deter co pper wire theft and hold perpetrators accountable. AB 476 enhances reporting requirements that junk dealers and recyclers must collect which include proof of ownership, signed statement of ownership, and additional identification details. It also requires the person selling the copper to obtain a state license to ensure that only legally obtained materials enter the market.
MEETING DATE: March 18, 2025
ITEM NO. 4.1(b)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.1(b)--Letter of Support for Assembly Bill 476 Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 45
Report to Redding City Council March 10, 2025
Re: 4.1(b)--Letter of Support for Assembly Bill 476 Page 2
Environmental Review
This is not a project as defined under the California Environmental Quality Act, and therefore no further action is required.
Council Priority/City Manager Goals
• Government of the 21 st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^AB 476 - Letter of support
Packet Pg. 46
Jack Munns, Mayor
[email protected]
530.225.4447
March 18, 2025
The Honorable Mark Gonzalez
California State Assembly
1021 O Street, Room 6150
Sacramento, CA 95814
RE: AB 476 (Gonzalez) Enhanced Enforcement Against Copper Wire Theft.
Notice of SUPPORT (As introduced 2/10/2025)
Dear Assembly Member Gonzalez,
The City of Redding is pleased to support AB 476 (Gonzalez), which enhances enforcement measures against copper wire theft. This legislation is a crucial step toward protecting California’s public infrastructure and ensuring the safety and functionality of essential services that communities rely on daily.
Copper wire theft has become a widespread and costly issue, severely impacting critical infrastructure components such as streetlights, fire hydrants and fire department connections, manhole covers, electric vehicle (EV) charging stations, and backflow prevention devices. Thieves often target these public assets due to the high value of copper, leaving behind significant damage that endangers public safety and imposes burdensome repair costs on local governments and businesses.
The consequences of copper wire theft are far-reaching:
• Streetlight Tampering: Stolen copper wiring from streetlights creates hazardous conditions by leaving streets and neighborhoods in darkness, increasing risks for pedestrians, motorists, and law enforcement.
• Fire Protection System Compromise: The theft of copper components from fire hydrants or fire department connections weakens emergency response capabilities, endangering lives and property in the event of a fire.
• Manhole Cover Theft: The removal of manhole covers poses severe hazards to drivers, bicyclists, and pedestrians, leading to potential accidents and injuries. • Backflow Device Damage: Backflow prevention devices protect drinking water supplies from contamination, and theft-related damages compromise water quality and public health.
The financial burden of repairing and replacing stolen infrastructure components falls on taxpayers, utility providers, and municipalities, draining resources that could otherwise be used for community Packet Pg. 47
Attachment: ^AB 476 - Letter of support (4.1(b)--Letter of Support for Assembly Bill 476)
development and essential services. AB 476 provides much-needed enforcement tools to deter copper wire theft and hold perpetrators accountable for the harm they cause to public safety and infrastructure reliability.
For these reasons, the City of Redding is pleased to support AB 476 (Gonzalez).
Sincerely,
Jack Munns
City of Redding
Mayor
cc. The Honorable Megan Dahle (via email)
The Honorable Heather Hadwick (via email)
League Regional Public Affairs Manager (via email)
League of California Cities, [email protected]
Packet Pg. 48
Attachment: ^AB 476 - Letter of support (4.1(b)--Letter of Support for Assembly Bill 476)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Accept the 202 4 City of Redding General Plan/Housing Element Annual Progress Report; and
(2) Direct staff to forward the document to the Governor’s Office of Planning and Research, and the State of California Department of Housing and Community Development.
Fiscal Impact
There is no fiscal impact associated with the acceptance of the 2024 General Plan/Housing Element Annual Progress Report (APR or Report).
Alternative Action
The City Council (Council) could choose to not accept the APR and direct staff to revise the report. In this case, the City of Redding (City) may not be able to meet statutory requirements for submission to the aforementioned state agencies by the April 1, 2025 deadline without a special meeting.
Background/Analysis
California Government Code Sections 65100 and 65400(a)(2) require that local governments submit a General Plan and Housing Element progress report to the local legislative body (the City Council), the Governor’s Office of Planning and Research ( OPR), and the State of California (State) Department of Housing and Community Development (HCD) by April 1 of each year. The purpose of the report is to detail the measures taken to implement the General Plan over the past year as well as the progress made towards the City’s Regional Housing Needs Allocation (RHNA) and implementation activities identified in the adopted and certified Housing Element. Residential permitting and construction activity is presented to OPR and HCD using MEETING DATE: March 18, 2025
ITEM NO. 4.4(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.4(a)--2024 Annual General Plan/Housing Element Progress Report Jeremy Pagan, Development
Services Director/Bldg
Official
Packet Pg. 49
Report to Redding City Council March 12, 2025
Re: 4.4(a)--2024 Annual General Plan/Housing Element Progress Report Page 2
required submittal forms provided by the State. The forms that constitute the City of Redding 2024 General Plan/ Housing Element Annual Progress Report proposed for City Council’s acceptance, and Appendix Table L – ADU Market Rate Study and Appendix Table M – ADU Phone Survey Rental Rates are accessible online at:
www.cityofredding.gov/government/departments/housing/housing___community_development/ strategic_planning_documents.php
The 2024 Housing Element Annual Progress Data Tables can be viewed online at:
www.cityofredding.gov/housingdatatables.
The General Plan implementation a ctivities conducted in 2024 are identified on page s three to five of the attached APR report and t he Housing Element report begins on page six. In combination with the data forms required for submittal by HCD, the 2024 APR is intended to be a comprehensive, yet easy to understand report, including:
• Summarizing activity which took place in the months following the adoption of the General Plan 2045 (General Plan); and
• Providing a table format that includes identified surplus lands, entitlement applica tion data, Local Early Action Planning Grant reporting information, residential permitting data within the 2024 calendar year, and progress made on activities found within the Housing Element.
As the data shows, two applications for multiple -family residential projects were submitted in 2024 for a combined total of 49 proposed units. In addition, a 16 -lot single-family residential subdivision was submitted in 2024. In addition to the aforementioned entitlement applications, in 2024, a total of 139 building permit applications for single-family residences were received, two building permit applications for duplexes were received , and 32 building permit applications for Accessory Dwelling Units (ADUs) were received. This represents an increase in residential permit applications from the previous year.
The number of permits issued for residential units also increased in 2024, with a total of four multiple-family developments obtaining permits for construction of a combined 112 units. Of these units, 87 will be provided for households at the very low-income level, 23 will be provided for households at the low -income level, and 12 will be provided to households at market -rate.
The City also issued 121 permits for single -family residences, two permits for duplexes, and 26 permits for ADUs in 2024. A total of 17 single-family permit applications, issued permits and/or finaled permits in 2024 were Carr Fire replacement homes.
Planning staff conducted a market rate analysis to assess the affordability of ADUs constru cted in 2024. Owners who constructed ADUs in 2024 were surveyed by phone. Several respondents stated that their units were being occupied at no cost by family members. This information is presented in Appendix Table M. Other respondents provided a rental r ate for their unit. In addition to these responses, online listings for permitted ADUs built in prior years were factored in with the data to determine that ADUs located in the City are offered at an average rental rate of $2.00 per square -foot. Based on t his rental rate and respondents who indicated that their ADUs were occupied at no cost by family members, of the 23 ADUs obtaining final inspections in 2024, four were affordable to extremely low-income or very low-income households, 12 were affordable to lower-income households, six were affordable to moderate-income households, and one was considered affordable to households at the above moderate-income level.
Packet Pg. 50
Report to Redding City Council March 12, 2025
Re: 4.4(a)--2024 Annual General Plan/Housing Element Progress Report Page 3
Based on permit valuations and a market rate study of single -family homes sold in the area, no single-family homes could be demonstrated as affordable to very low -income, low -income, or moderate-income households. High interest rates and the increased cost of construction , along with inflation , are considered to be the primary reasons for the unaff ordability of newly-constructed, single-family dwellings.
At the midpoint of the 2020 -2028 Housing Element cycle, it is important to note the City’s progress towards meeting the RHNA. Table B on the Housing Element Annual Progress Data Tables, includes the RHNA for the current cycle by income level, the actual housing production up to the 2024 midpoint, as well as the projected and needed rate of construction that would be necessary to meet the targets at each income level. Overall , the data shows that levels of permitting will need to remain steady or increase at the lower-income levels in order to fulfill the housing needs projected for the 2020-2028 period. The above moderate-income level is expected to have a surplus of dwelling units constructed by 2028. Consistently each year, in addition to affordable multiple -family residential projects, ADUs have proven to be a valuable type of residential dwelling unit towards meeting the moderate-, lower- and very low-income households needs.
It should be not ed that the Regional Housing Needs Allocation established for the City by HCD on Table B on the Housing Element Annual Progress Data Tables is not a housing production mandate. Therefore, the City is not expected to develop the number of housing units show n in the table. Nevertheless, when new RHNA numbers are issued, the City may have to account for the shortfall from the previous cycle by creating capacity through zoning and removal of other governmental constraints, if units are not constructed at the rate identified in RHNA.
Table H on the Housing Element Annual Data Tables is a comprehensive list of all surplus or excess property owned by the City. Local agencies must annually report information about all locally owned surplus land sites pursuant to California Government Code Section 54230, also known as the Surplus Land Act, by utilizing the table provided by HCD.
Environmental Review
This is not a project as defined under the California Environmental Quality Act , and no further action is required.
Council Priority/City Manager Goals
• Government of the 21 st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• 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
^2024 Draft General Plan/Housing Element Annual Progress Report ^Appendix Table L - ADU Market Rate Study 2024
^Appendix Table M - ADU Phone Survey Affordability Determination 2024 Packet Pg. 51
City of Redding
2024
General Plan/Housing Element
Annual Progress Report
Prepared By:
Development Services Department
March 2025
Packet Pg. 52
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
TABLE OF CONTENTS
Purpose of Annual Report ................................................................................................................1 General Background ........................................................................................................................2 2024 Activity ...................................................................................................................................3 General Plan Implementation Progress ............................................................................................5 Housing Element Progress Report .................................................................................................23
Packet Pg. 53
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 1
PURPOSE OF THE ANNUAL REPORT
California law requires all jurisdictions to submit to their legislative bodies, by April 1, an annual report on the status of the General Plan and progress toward its implementation. The report must also be forwarded to the Governor's Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD). Because the role of the General Plan is to serve as the "constitution" for a community's land use and development activities, and because it is required to be updated periodically to reflect current circumstances, it is critical that local planning agencies periodically review the General Plan and its imp lementation. This Annual Report is the appropriate tool for that review.
The information contained in this report satisfies both the overall General Plan and Housing Element (Element) annual reporting requirements established by California Government Code Section 65400. It allows interested persons and parties to compare the implementation programs contained in the General Plan with those activities initiated and completed by the City since its adoption.
The report is organized in the following manner:
G
ENERAL PLAN. The report summarizes action taken following the adoption of the 2045 General Plan Update in March of 2024. Because the updated version of the General Plan occurred during the reporting year, this report focuses on the few implementation measures taken during that limited timeframe. Future reporting years will include all actionable implementation measures contained in the General Plan 2045 and will detail the progress made toward implementation since its adoption.
H
OUSING ELEMENT. The report incl udes specific project and program activities conducted in 2024. In addition, all data requested by HCD on residential permitting and construction activity is attached to the report for reference. The data is compiled and displayed using a table format that is required by HCD.
Packet Pg. 54
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 2
GENERAL BACKGROUND
The City of Redding General Plan 2045 (General Plan) was adopted on March 26, 2024. The new version adopted in 2024 constituted a comprehensive update of all elements of the General Plan with the exception of t he Housing Element . The Housing Element is updated on its own, separate cycle in accordance with State law. The State-required elements of a general plan consist of Land Use, Circulation, Housing, Conservation, Open Space, Noise, Safety and Environmental J ustice (where applicable) . In addition, the General Plan includes optional elements: Public Facilities and Services, Parks, Trails and Recreation, Natural Resources , Economic Development and Community Health, Wellness and Environmental Justice . In some cases, the General Plan 2045 combines the required and optional elements into one element.
The Housing Annual Progress Report is a report on the progress made towards the City’s Regional Housing Needs Allocation (RHNA) for the eight-year cycle. The data provided to HCD and OPR is shared in an accessible dashboard available to the public and is used to track the State’s progress in addressing the housing crisis and housing affordability throughout all of California. 2024 marked the midpoint of the City’s Housing Cycle (2020-2028). This data is also used to project whether the City is on track to meet the RHNA for the current cycle and organizes this information by housing type and the affordability levels of housing units constructed.
Local governments are re quired to keep their General Plan current and internally consistent.
There is no specific requirement that governs the timing of G eneral Plan updates, with the exception of the Housing Element, which is required to be updated every eight years. The City of Redding's Housing Element was last updated and adopted on June 2, 2020.
The 2024 Annual Progress Report was presented to the Redding City Council on March 18, 2025.
Packet Pg. 55
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 3 2024 ACTIVITY
With the adoption of a new, comprehensive General Plan update in 2024, new Goals, Objectives and Policies which guide implementation activities for the next 20 years were established. Many of the previous goals and policies were refined and carried forward. However, new policies and implementation measures were also introduced. The seven Strategic Actions that are highlighted in the newly adopted General Plan can be summarized as follows:
1. Continuing planning efforts to guide the development and redevelopment of the Downtown Core, Riverfront Focus Area and Opportunity Areas.
2. Increasing efforts to attract new industries and talent to the area and retain high -paying jobs and workforce.
3. Contributing to the quality of life in Redding by investing in cultural, rec reational and open space projects.
4. Focusing development efforts on building better neighborhoods.
5. Ensuring public and private development is well -designed, functional, complementary to surrounding areas, and contributes a fair share to providing the necessary infrastructure.
6. Continuing to ensure infrastructure is planned, funded and constructed at expected standards.
7. Continuing to develop a transportation system of “complete streets” which recognizes nonmotorized modes of transportation in addition to motorized transportation.
Numerous other goals and policies are included in the General Plan, many of which work t o achieve these Strategic Actions . Because there has not been a significant amount of time since the General Plan was adopted, this report offers a summary of actions taken to further the Strat egic Actions found in the General Plan. Future Annual Reports will include a table which addresses progress made on each actionable policy found in the General Plan. Despite the short amount of time passed, t he City has made progress in implementing Genera l Plan policies since its adoption as reflected i n the following summarized progress report.
There were no applications for General Plan amendments in 2024; neither before nor after the adoption of the current version of the General Plan 2045.
Notable activities that were started and/or completed in the months following the adoption of the General Plan 2045 in 2024 include:
Downtown Specific Plan Implementation – As part of the Downtown Specific Plan (Plan) the City has been implementing elements of th e plan as major redevelopment projects are proceeding throughout Downtown. Notably, in 2024 permits were issued for a mixed -use development with “The Rib Cage” restaurant and 12 apartments on a key vacant infill lot of the Downtown Mixed Use District.
Downtown Redding Central Park – A goal of the Downtown Specific Plan is to establish a central park in the downtown core area. The AHSC grants have allowed the City to partner with the development team to establish a new park south of the Shasta College buil ding along Market Street. Construction of Whistle Stop Park was completed and the park was opened in June of 2024. Whistle Stop Park converted the existing parking lot into a unique public plaza space and gathering area with a stage for community performances and events, l andscaping, a misting feature, lighting and more. The park was funded by a combination of a grant from the Clean California program and Park Development Impact Fees.
Downtown Bike Loop – In 2024, the City completed the construction of a s eparated bike facility along Trinity Street, Continental Street and Butte Street to connect the Sacramento River Trail and Diestelhorst Packet Pg. 56
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 4 to Downtown trail improvements and complete the long-anticipated Downtown loop active transportation network. This completes a four -mile loop around the river trail, across the Sacramento River, into downtown and through Turtle Bay across the iconic Sundial Bridge. The project was funded through a State grant that helped provide much of the redevelopment of the Downtown Cor e. This project furthers General Plan policies which intend to improve transportation infrastructure that meets the diverse needs of users of all ages , and to provide safe facilities for alternative modes of transportation consistent with the Redding Active Transportation Plan.
Riverfront Specific Plan – Progress continued on the update of the Riverfront Specific Plan since the adoption of the General Plan in 2024. In June of 2024, the Development Services Department and the consultants retained to prepare the Riverfront Specific Plan hosted two public workshops. These provided community members an opportunity to learn about the Vision and Guiding Principles Framework and major findings from the existing conditions analysis , and to discuss and share ideas on emerging opportunities and alternatives for the Northern and Southern Riverfront areas. In addition, online surveys were conducted from August 8, 2024 to September 4, 2024 to reach a wider audience and to obtain feedback on options and alternatives for the Riverfront Area.
River Crossing Marketplace Specific Plan – The implementation of the River Crossing Marketplace Specific Plan (Plan) continued in 2024 with permits having been issued for various commercial retail and restaurant businesses consistent with the Plan. The lots have been arranged to accommodate the complete buildout of the Plan and the developer is working with potential tenants to complete construction, subject to review by s taff. Ultimately, construction of the entire Plan stands at around eighty percent (80%) completion.
Shastina Ranch Park – Construction of road improvements and infrastructure for the Shastina Ranch Park was completed in 2024. Shastina Ranch P ark is the City’s newest large neighborhood park. The project is funded by P ark Development Impact Fees generated in the residential multiple-family subdivision area immediately surrounding the approximately 7.6 -acre site. The park features play elements made of natural materials, as well as a multi- purpose court, exercise equipme nt, zipline and much more.
Affordable Housing Development – Development of the Center of Hope Apartments continued in 2024, with construction of Units 1- 3 of Phase I completed in August of 2024, and permits issued for Buildings 1 and 2 of Phase II in November of 2024. The Center of Hope is an affordable housing project which utilizes Tax Credits and CDBG funds administered by the U.S. Department of Housing and Urban Development (HUD). In addition, Lowden Lane Apartments, a 61- unit affordable senior living facility, obtained final permit approval in 2024. These projects continue to further General Plan objectives to meet the housing needs of all citizens of Redding.
Prohousing Designation – In December of 2024, a s part of incentivizing and accommodating th e full range of housing types identified in the General Plan 2045 and to help increase the supply of housing that is affordable to all income levels, the City applied to the State Department of Housing and Community Development for a P rohousing Designation. With this designation, the City is eligible for funding through the Building Homes and Jobs Trust Fund and receives priority processing and grant funding points when applying for numerous funding programs. These programs help the City fulfill a variety o f General Plan policies which seek to facilitate affordable housing projects and incentivize a greater variety of housing supply in appropriate areas throughout the City.
Density Bonus Ordinance Updated – In November 2024, the City of Redding completed an update to its Residential Density Bonus ordinance to update the provisions to apply density bonuses to projects and bring the ordinance into conformance with State law. The Density Bonus serves as an effective tool for Packet Pg. 57
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 5 developers to provide more residenti al units, along with projects that include units that are affordable at very low -, low - and moderate -income levels. “The Rib Cage” mixed -use development in Downtown utilized the residential density bonus to facilitate its development. The permit for “The R ib Cage” was issued in November of 2024 and the project is under construction.
Community Wildfire Protection Plan – The Community Wildfire Protection Plan (CWPP) was drafted in 2024 to update the Redding Fire Department’s existing Fire Management plan. The overall objective of the CWPP was to develop actionable projects that increase the wildfire resilience of the City and surrounding communities. This effort includes objectives to identify wildfire risks ; understand fire behavior specific to Redding ; address the intersection of human lives, property, critical infrastructure , etc.; implement targeted outreach to residents to reduce hazards ; and to recommend policy improvements, public outreach and fuel management opportunities to effectively increase wildf ire preparedness and elevate the community’s relationship with wildfire risk. The City Council adopted the CWPP, which ultimately furthers implementation of several General Plan policies related to public safety and protecting the community from wildfire hazards.
Emergency Evacuation Routes – Several public safety policies found within the General Plan require an evaluation of existing evacuation routes pursuant to Assembly Bill 747 and Senate Bill 99. In 2024, Development Services staff maintained discuss ions with the Fire Department to determine the best course of action to conduct a comprehensive, Citywide assessment and evaluation of evacuation routes and is currently exploring funding opportunities and methods of completing this effort.
Packet Pg. 58
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 6 2024 RESIDENTIAL DEVELOPMENT PROGRESS REPORT
The Housing Annual Progress Report submitted to the State Department of HCD and OPR includes several tables with progress on housing development in the reporting year (2024). Table B below represents progress made for the overall 2020- 2028 Housing Element Cycle on the City fulfilling its Regional Housing Needs Allocation during that timeframe . The numbers reflected in Table D represent permits issued in the re porting year and organizes that data by affordability level of the units . Table D below demonstrates the progress made on each implementation activity (or program implementation) in the adopted housing plan. Table H below represents the maintained list of surplus land owned by the City of Redding and identified in the 2020-2028 Housing Element. Many of the remaining tables are too large to format into this report. Below is a summary of the 2024 housing development activity data included in the tables provided to HCD and OPR.
Permit Applications in 2024 – The Development Services Department received applications for two multiple-family residential projects consisting of a total of 49 units. One single -family subdivision application was received which would provide 16 new residential lots if approved. All other permit applications received were either single -family dwellings, duplexes or accessory dwelling units (ADUs).
In 2024 a total of 139 applications for single -family residences were received; two applications for duplexes were received; and 32 applications for ADUs were received.
Permits Issued in 2024 – A total of f our multiple-family developments obtained permits in 2024 for construction of a combined 112 units. Of these units, 87 will be provided for households at the very low -income level, 23 will be provided for households at the low -income level and 12 will be provided to households at the market rate. The City also issued 121 permits for single -family residences, two permits for duplexes, and 26 permits for ADUs in 2024.
Permits Finaled in 2024 – Construction was completed and final permit approvals granted for four different multiple-family developments in 2024 for a combined total of 82 units built. Of these multiple - family units constructed, 47 are provided to households at a very -low income level, one is provided to a household at the low -income level and 34 are provided at market rate. In addition, construction was finaled for 143 single-family residences and 23 ADUs in 2024.
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Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 7
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
(CCR Title 25 §6202)
Jurisdiction Redding
Reporting Year 2024
(Jan. 1 - Dec.
31)
Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
1 2 3 4
Income Level
RHNA
Allocation
by Income
Level
2020 2021 2022 2023 2024 2025 2026 2027 2028
Total
Units to
Date (all
years)
Total
Remaining
RHNA by
Income
Level
Very Low
Deed Restricted
502
125 59 85
275 227 Non-Deed
Restricted 4 2
Low
Deed Restricted
336
1 24 23
235 101 Non-Deed
Restricted 93 4 16 15
Moderate
Deed Restricted
360
165 195 Non-Deed
Restricted 46 104 7 8
Above
Moderate 893 50 50 80 90 126 645 248
Total RHNA 2,091
Total Units 50 194 338 172 259 1320 771
Progress toward extremely low-income need, as determined pursuant to Government Code 65583(a)(1).
Extremely
Low-
Income
Level
2020 2021 2022 2023 2024 2025 2026 2027 2028
Total
Units to
Date
Total Units
Remaining
251 - - 95 59 32 - - - - 186 65
Packet Pg. 60
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 8
ANNUAL ELEMENT PROGRESS REPORT
HOUSING ELEMENT IMPLEMENTATION
(CCR Title 25 §6202)
Jurisdiction: City of Redding
Reporting Period: January 1, 2024 - December 31, 2024
- Table D -
Program Implementation Status
Program Description
(By Housing Element
Program Names)
Housing Programs Progress Report - Government Code Section 65583 Describe progress of all programs, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the Housing Element.
Name of Program Objective Deadline in H.E. Status of Program Implementation Activity 1.1
Moderate/Substantial
Rehabilitation-Owner-
Occupied Units
Each year rehabilitate 10
single-family homes (1 ELI;
3 VLI; 4 LI; 2 MI).
Ongoing During the reporting period, 0 single
family homes were rehabilitated
through the City’s Owner-Occupied
housing rehabilitation program.
Activity 1.2
Moderate/Substantial
Rehabilitation-Rental
Units
Each year rehabilitate 14
rental units (6 VLI; 8 LI).
Ongoing There were 0 rental units rehabilitated
during the reporting period.
Activity 1.3
Minor Rehabilitation -
All Units.
Each year rehabilitate 20
ERP units and 135 senior
repairs (SRP) (46 ELI; 70
VLI; 39 LI).
Ongoing During the reporting period, no units
were assisted through the Emergency
Repair Program, and 25 units (10 ELI;
13 VLI; 2 LI) were assisted through
Senior Minor Repair Program.
Activity 1.4
Code Enforcement.
Minimize number of
dwellings demolished
through abatement process.
Ongoing No units were demolished through the
abatement process in 2024. Typically,
the City works with owners by
allowing them time to perform any
required corrective action or finding
help, connecting them w/ the Housing
Division to see if they qualify for any
programs, or any other avenues
(churches, NGOs, etc.) that arise to
help.
Activity 1.5
Conservation of At-Risk
Units.
Conserve 120 affordable
rental units identified as at-
risk of converting to market
rate.
Ongoing There are currently four projects
where the affordability periods will
end in this housing cycle. The City
conducts long term monitoring
annually, and notifies owners when
their affordability is coming to an end.
The City will analyze and identify any
funding resources to preserve these
properties.
Packet Pg. 61
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 9 Program Description
(By Housing Element
Program Names)
Housing Programs Progress Report - Government Code Section 65583 Describe progress of all programs, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the Housing Element.
Name of Program Objective Deadline in H.E. Status of Program Implementation Activity 2.1
Development of New
Affordable Rental Units.
Annually facilitate the
development of 12 new
multiple-family units for low-
and moderate-income
households.
Ongoing During the reporting period, the City
partnered with Center of Hope
Apartments, LP to construct Center of
Hope Apartments, phase II, an
affordable housing development
featuring 48 multi-family rental units
for income-eligible households. The
City continues to maximize and
manage previously awarded Project-
Based Vouchers to facilitate new
affordable housing.
Activity 2.2
Partnerships with Local
Nonprofit Housing
Development Entities.
Enter into mutually beneficial
partnerships with housing
providers.
Ongoing The City will continue ongoing
outreach with not-for-profit providers
as projects are identified to solidify
partnerships as early in the planning
and development process as possible.
Both for-profit and non-profit
developers are solicited through the
RFQ or RFP notices. The notices may
be very specific, such as soliciting
interest in development of a well-
defined project at a certain location, or
simply requesting ideas on conceptual
development. In addition, the City
maintains an open application policy
for affordable housing proposals. An
online application is available, which
can be completed and submitted for
any prospective project for which the
developer anticipates requesting City
funding assistance.
Activity 2.3
HUD Section 8 Housing
Choice Voucher Rental
Assistance Program.
Maintain 95-100 percent
lease-up rate of allocated
subsidies. Apply for
additional vouchers as they
become available.
Ongoing The Redding Housing Authority
maintained a 98% percent lease-up
and expended 100% percent of
allocated HAP funds. The Redding
Housing Authority received ten (10)
new Veteran Assisted Supportive
Housing (VASH) vouchers, and is
currently at 98% lease up.
Activity 2.4
New Construction of
Ownership Units.
Facilitate the development of
3 new ownership units
annually.
Ongoing No activity due to limited funding
available.
Activity 2.5
Zoning Code
Amendment: "RM"
Residential Multiple
Family District
To amend the "RM" district
regulations to establish a
default density of 20 units per
acre for developments in the
"RM-12" and "RM-18"
districts.
To be completed in
FY 2020-2021
The Development Services
Department has recently hired a Senior
Planner and staff levels are expected
to provide opportunity to address
zoning code updates. This zoning
ordinance amendment is expected to
be updated by the end of 2025.
Packet Pg. 62
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 10 Program Description
(By Housing Element
Program Names)
Housing Programs Progress Report - Government Code Section 65583 Describe progress of all programs, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the Housing Element.
Name of Program Objective Deadline in H.E. Status of Program Implementation Activity 2.6
Amend the City's
Accessory Dwelling Unit
Ordinance.
To evaluate the ADU
provisions for compliance
with State law and amend the
ADU ordinance as necessary.
To be completed in
within one year of
adoption of the HE
update.
The ADU Ordinance was updated in
2020 and was brought into compliance
with State law. Since that time State
law has been amended and The
Development Services Department
intends to evaluate and update the
ordinance if necessary by the end of
the 2025 Fiscal Year.
Activity 2.7
Establish Affordable
Housing Land Use
Availability Tracking
System.
To develop and implement an
ongoing evaluation procedure
and tracking program for
affordable housing projects
and identified sites.
To be completed
within one year of
adoption of the HE
update.
A formal tracking system has not been
developed due to limited staffing and
resources. However, the Development
Services Department continues to
ensure sufficient residential capacity is
maintained to accommodate the
RHNA through implementation of
State law and as part of the Annual
Progress Report. In 2025, the
Development Services Department
plans to begin develop a tracking
system in cooperation with the GIS
Department.
Activity 2.8
Zoning Code
Amendment for Low-
Barrier Navigation
Centers
To amend the zoning code to
allow low barrier navigation
centers by-right in areas
zoned for mixed uses and
nonresidential zones which
permit multiple family uses.
To be completed
within one year of
adoption of the HE
update.
The Development Services
Department has recently hired a Senior
Planner and staff levels are expected
to provide opportunity to address
zoning code updates. This zoning
ordinance amendment is expected to
be updated by the end of 2025.
Activity 2.9
Zoning Code
Amendment for
Development of
Supportive Housing.
To amend the zoning code to
establish necessary guidance
to address the new State
requirements.
To be completed
within one year of
adoption of the HE
update.
The Development Services
Department has recently hired a Senior
Planner and staff levels are expected
to provide opportunity to address
zoning code updates. This zoning
ordinance amendment is expected to
be updated by the end of 2025.
Activity 2.10
Review residential use
limitations of the Limited
Office Zoning District.
To review the current
provisions of the Limited
Office District to determine
whether multiple family
zoning is appropriate and
amend as necessary.
To be completed by
December 31, 2022.
The Development Services
Department has recently hired a Senior
Planner and staff levels are expected
to provide opportunity to review the
LO District to determine if a zoning
code update is necessary. This review
is expected to be completed by the end
of 2025.
Activity 2.11
Review the Homeless
Shelter provisions of the
Zoning Code for
consistency with State
Law.
To review the Homeless
Shelter provisions of the
Zoning Code for consistency
with State Law and adopt any
necessary amendments.
To be completed by
December 31, 2022.
The Development Services
Department has recently hired a Senior
Planner and staff levels are expected
to provide opportunity to review the
LO District to determine if a zoning
code update is necessary. This review
is expected to be completed by the end
of 2025.
Packet Pg. 63
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 11 Program Description
(By Housing Element
Program Names)
Housing Programs Progress Report - Government Code Section 65583 Describe progress of all programs, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the Housing Element.
Name of Program Objective Deadline in H.E. Status of Program Implementation Activity 2.12
Amend the Zoning Code
to accommodate
farmworker housing in
compliance with State
law.
To review and amend the
provisions of the zoning code
related to employee housing.
To be completed by
December 31, 2022.
The Development Services
Department has recently hired a Senior
Planner and staff levels are expected
to provide opportunity to review the
LO District to determine if a zoning
code update is necessary. This review
is expected to be completed by the end
of 2025, with necessary amendments
to be made prior to that time or by the
end of the 2025 Fiscal Year.
Activity 2.13
Review the Density
Bonus Provisions for
consistency with State
law.
To review and determine
compliance of the Residential
Density Bonus provisions
with State law.
To be completed by
December 31, 2022.
The Residential Density Bonus
ordinance was updated in 2024 and is
in compliance with State law. This
activity is complete.
Activity 3.1
Increase Homeownership
Opportunities.
Assist 10 households to
purchase homes annually (1
VLI; 9 LI).
Ongoing No Home ownership opportunities in
the reporting period were able to
utilize the City’s down-payment
assistance program. Low inventory
and high interest rates limited activity.
Activity 3.2
Target Neighborhood
Incentive Package.
Provide incentive to those
property owners who
participate in revitalizing
their neighborhood.
Ongoing No activity due to limited funding
available for these incentives.
Activity 4.1
Marketing of City-
Owned Parcel Within
Target Neighborhoods
Market the City-owned
parcels in the target
neighborhoods to support the
goals of the existing
neighborhood plans.
Ongoing The City continued its partnership
with Ken Murray, a local real estate
agent, to market the City’s SHA
properties. There are two parcels are in
Target Neighborhoods.
Activity 5.1
Fair Housing Referral
and Information
To educate the public
regarding antidiscrimination
regulations and other Fair
Housing Laws.
Ongoing Housing staff responded to 68
inquiries for fair-housing information.
April of every year is Fair Housing
Month. As such, Housing co-sponsors
an Annual Fair Housing Workshop.
Packet Pg. 64
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 12 Program Description
(By Housing Element
Program Names)
Housing Programs Progress Report - Government Code Section 65583 Describe progress of all programs, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the Housing Element.
Name of Program Objective Deadline in H.E. Status of Program Implementation Activity 5.2
Homeless Assistance
To assist in the provision of
shelter and services to the
area’s homeless population.
Ongoing The City took on the role of
Administrative Entity for the NorCal
CoC in Fall 2023. The City operates in
active participation and as regional
administrator and assists in providing
HHAP and HUD funding to 6
agencies that provide emergency
services, shelter services, and/or
permanent supportive housing services
to those who are homeless or at risk of
homelessness. The City administers
grant funding for emergency shelter,
rental assistance, street outreach to the
homeless with immediate needs,
housing and medical and other
supportive issues. Activity 5.3
Occupancy SRO Units
Support development of
SRO’s within the multiple
family residential districts
and general commercial
district.
Ongoing
No inquiries were received regarding
the development of SRO’s in 2024.
Activity 6.1
Family Self-Sufficiency
(FSS) Program
Assist FSS participants
achieve the highest possible
level of self-sufficiency and
economic independence, free
from public assistance.
Ongoing
During 2024, there were 41 active FSS
participants. (12 program graduates)
Packet Pg. 65
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 13 Program Description
(By Housing Element
Program Names)
Housing Programs Progress Report - Government Code Section 65583 Describe progress of all programs, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the Housing Element.
Name of Program Objective Deadline in H.E. Status of Program Implementation Activity 7.1
Energy Efficiency
Provide means to lower
energy costs.
Ongoing
Redding Electric Utility switched its
Customer Program portfolio from
Energy Efficiency to Fuel Substitution
(electrification) in FY22. Per REU's
Demand-Side Management Integrated
Resource Plan (DSM-IRP),
electrification is more cost-effective
than energy efficiency programs. REU
developed new rebate programs that
focus on conversion of gas equipment
to high-efficiency electric equipment
using heat pump technology.
Additionally, REU's Residential
Electrification Assistance Program
(REAP), in collaboration with Self-
Help Home Improvement Project
(SHHIP), replaces gas appliances with
high-efficiency electric equipment to
support electrification for income-
qualified customers.
Activity 7.2
Low Income Energy
Efficiency Initiative
Partner with developers to
rehabilitate residential units
to a standard that supports
energy efficiency and
renewable energy
technologies.
Ongoing
No activity due to limited funding
available.
Packet Pg. 66
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 14
ANNUAL ELEMENT PROGRESS REPORT
HOUSING ELEMENT IMPLEMENTATION
Jurisdiction: City of Redding
Reporting Period: January 1, 2024 - December 31, 2024
- Table H -
Locally Owned Surplus Sites
APN Street
Address/Intersection Existing Use Surplus
Designation
Parcel Size
(in acres) Notes
114-310-019 4455 Oasis Rd Vacant
Surplus
Land
22.28 114-430-002 18185 Oasis Rd Vacant Surplus
Land 1.46
070-100-027 3811 El Portal Dr Vacant
Sold
0.06 054-640-013 6690 Lockheed Dr Vacant Surplus
Land 1.58
056-610-004 6950 Lockheed Dr Vacant
Surplus
Land
1.58 115-170-001 850 Quartz Hill Rd Vacant Surplus
Land 112.85
102-270-001 1128 Gold St Vacant
Surplus
Land
0.04 101-750-043 1515 Gold St Vacant Surplus
Land 0.49
067-370-043 2984 Victor Ave Vacant
Surplus
Land
0.2 067-370-022 2882 Victor Ave Vacant Surplus
Land 0.2
067-370-023 2894 Victor Ave Vacant
Surplus
Land
0.2 067-370-024 2908 Victor Ave Vacant Surplus
Land 0.2
067-370-025 2918 Victor Ave Vacant
Surplus
Land
0.2 067-370-026 2932 Victor Ave Vacant Surplus
Land 0.2
067-370-027 2946 Victor Ave Vacant
Surplus
Land
0.2 Packet Pg. 67
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 15 APN Street
Address/Intersection Existing Use Surplus
Designation
Parcel Size
(in acres) Notes
067-370-052 2958 Victor Ave Vacant Surplus
Land 0.2
067-270-062 2758 Victor Ave Vacant
Surplus
Land
0.2 067-270-065 2798 Victor Ave Vacant Surplus
Land 0.2
067-270-066 2808 Victor Ave Vacant
Surplus
Land
0.2 067-270-067 2822 Victor Ave Vacant Surplus
Land 0.2
067-270-068 2834 Victor Ave Vacant
Surplus
Land
0.2 067-270-069 2848 Victor Ave Vacant Surplus
Land 0.2
067-270-070 2858 Victor Ave Vacant
Surplus
Land
0.2 067-270-071 2870 Victor Ave Vacant Surplus
Land 0.2
067-380-046 2699 Bunker St Vacant
Surplus
Land
0.2 067-380-047 2725 Bunker St Vacant Surplus
Land 0.36
067-380-050 2740 Victor Ave Vacant
Surplus
Land
0.2 113-300-031 900 Redwood Blvd Vacant Surplus
Land 1.19
054-830-001 4800 Venture Pkwy Vacant
Surplus
Land
15.6 054-830-001 4855 Venture Pkwy Vacant Surplus
Land 2.62
054-830-003 4950 Venture Pkwy Vacant
Surplus
Land
3.05 054-220-016 5550 Venture Pkwy Vacant Surplus
Land 7.5
054-220-017 5750 Venture Pkwy Vacant
Surplus
Land
10 Packet Pg. 68
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 16 APN Street
Address/Intersection Existing Use Surplus
Designation
Parcel Size
(in acres) Notes
054-220-031 5855 Venture Pkwy Vacant
Surplus
Land
34.08 054-220-018 5950 Venture Pkwy Vacant Surplus
Land 6.94
054-260-003 6035 Venture Pkwy Vacant
Surplus
Land
22.77 054-260-010 6055 Venture Pkwy Vacant Surplus
Land 0.99
054-260-004 6155 Venture Pkwy Vacant
Surplus
Land
25.41 054-260-005 6355 Venture Pkwy Vacant Surplus
Land 34.99
054-260-006 6555 Venture Pkwy Vacant
Surplus
Land
22.47 054-260-007 6655 Venture Pkwy Vacant Surplus
Land 7.93
054-260-008 6755 Venture Pkwy Vacant
Surplus
Land
5.31 104-200-018 2524 Linden Ave Vacant Surplus
Land 0.26
104-200-019 2510 Linden Ave Vacant
Surplus
Land
0.15 104-200-022 2504 Linden Ave Vacant Surplus
Land 0.16
104-200-023 2440 Linden Ave Vacant
Surplus
Land
0.14 104-200-025 2424 Linden Ave Vacant Surplus
Land 0.14
104-200-026 2414 Linden Ave Vacant
Surplus
Land
0.46 104-200-028 2404 Linden Ave Vacant Surplus
Land 0.15
104-200-029 2380 Linden Ave Vacant
Surplus
Land
0.16 104-200-036 2320 Linden Ave Vacant Surplus
Land 0.13
Packet Pg. 69
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 17 APN Street
Address/Intersection Existing Use Surplus
Designation
Parcel Size
(in acres) Notes
104-200-037 2312 Linden Ave Vacant
Surplus
Land
0.14 104-200-030 2364 Linden Ave Vacant Surplus
Land 0.14
104-200-032 2334 Linden Ave Vacant Surplus
Land 0.4
104-200-040 2304 Linden Ave Vacant
Surplus
Land
0.13 104-200-041 2264 Linden Ave Vacant Surplus
Land 0.14
104-200-043 2244 Linden Ave Vacant
Surplus
Land
0.14 104-200-044 2234 Linden Ave Vacant Surplus
Land 0.14
104-200-047 2224 Linden Ave Vacant
Surplus
Land
0.14 104-220-021 2210 Linden Ave Vacant Surplus
Land 0.14
104-220-024 2204 Linden Ave Vacant
Surplus
Land
0.29 104-220-022 2208 Linden Ave Vacant Surplus
Land 0.14
104-220-025 2148 Linden Ave Vacant
Surplus
Land
0.14 104-220-027 2136 Linden Ave Vacant Surplus
Land 0.14
104-220-031 2114 Linden Ave Vacant
Surplus
Land
0.28 104-220-028 2124 Linden Ave Vacant Surplus
Land 0.14
104-220-029 2118 Linden Ave Vacant
Surplus
Land
0.14 104-220-033 2000 Linden Ave Vacant Surplus
Land 0.68
108-010-043 2955 Leland Ave Vacant
Surplus
Land
1.21 Packet Pg. 70
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress
2024 GENERAL PLAN/HOUSING ELEMENT ANNUAL PROGRESS REPORT PAGE 18 APN Street
Address/Intersection Existing Use Surplus
Designation
Parcel Size
(in acres) Notes
116-440-025 1313 Rose Lane Vacant
Surplus
Land
1.11 104-350-002 2520 Leland Ave Vacant
Surplus
Land
0.16 104-350-019 815 Parkview Ave Vacant Surplus
Land 0.16
104-350-018 825 Parkview Ave Vacant Surplus
Land 0.16
054-210-084 3677 Avtech Pkwy Vacant
Surplus
Land 2.75
054-210-045 3699 Avtech Pkwy Vacant Surplus
Land 2.7
050-040-010 7501 Eastside Rd Vacant/
Utilities
Surplus
Land 90.78
Mix of vacant
land and
waste water
treatment
ponds
Packet Pg. 71
Attachment: ^2024 Draft General Plan/Housing Element Annual Progress Report (4.4(a)--2024 Annual General Plan/Housing Element Progress LISTING APN ADDRESS DESCRIPTION SQUARE FEET BEDROOMS RENTAL RATE COST PER Sq. Ft.
Online: Hotpads 104060004000 3849 Pebble Drive Detached 550 Sq. Ft. ADU 560 1 $ 2,000.00 $ 3.57 Online: Hotpads 117470015000 396 Franciscan Trail 700 Sq. Ft. Basement Converted to ADU 700 1 $ 1,300.00 $ 1.86 Online: Hotpads 105300018000 1335 Magnolia Avenue 2nd Res on E SF Lot. 504 Sq. Ft. 504 1 1,000.00 $ $ 1.98 Online: Hotpads 105290011000 1167 Magnolia Avenue 700 Sq. Ft. Studio 700 0 1,200.00 $ $ 1.71 Online: Craigslist 054330007000 4903 Alto Rico Drive 600 Sq. Ft. Detached ADU 600 1 1,500.00 $ $ 2.50 Phone Survey 108300003000 370 Revilo Drive New 540 Sq. Ft. ADU Attached to Main House 531 1 1,200.00 $ $ 2.26 Phone Survey 105470016000 2247 Placer Street 1000 Sq. Ft. Detached ADU 1000 2 1,600.00 $ $ 1.60 Phone Survey 108010002000 2638 Sharon Avenue Convert Existing 720 Sq. Ft. Attached Garage into ADU 720 1 1,350.00 $ $ 1.88 Phone Survey 067460018000 2715 Alfreda Way Remodel Existing Shop into ADU 797 2 1,400.00 $ $ 1.76 Phone Survey 108290052000 497 Smile Place New 1000 Sq. Ft. Detached ADU 1000 2 1,550.00 $ $ 1.55 Phone Survey 108130048000 2022 El Reno Lane Converted Detached Garage to ADU 640 1 825.00 $ $ 1.29 Average Cost
Per Sq. Ft. 2.00$
In February 2025, Staff searched online advertisements and conducted phone surveys to determine what the market rate per square foot is for Accessory Dwelling Units (ADUs) within the City. The results of the advertisements or phone surveys were used to determine affordability levels of individual ADUs applied for, issued or constructed in 2024, as well as to determine the market rate for those units constructed in 2024 that could not be verified. Extreme outliers (2) from furnished finders were removed from the calculation. The market rate per square foot was then used to determine a projected rent and find the affordability level using the affordability calculator.
APPENDIX TABLE L ‐ ADU Market Rate Study 2024
Packet Pg. 72
Attachment: ^Appendix Table L - ADU Market Rate Study 2024 (4.4(a)--2024 Annual General Plan/Housing APN ADDRESS PERMIT NUMBER DESCRIPTION RENTAL RATE / NOTES SIZE BDRMS METHOD AFFORDABILITY LEVEL 108300003000 370 REVILO DR
REDDING, CA 96001 BLDR‐2023‐01444 NEW 540 SQ. FT. ADU ATTACHED TO MAIN HOUSE BY A BREEZEWAY $1200/month 531 1 Affordability Calculator Low
115350002000 3469 OLD LANTERN DR
REDDING, CA 96003 BLDR‐2022‐02149 AS BUILT GARAGE CONVERSION TO ADU MARKET RATE = $800 400 1 Market Rate $2/Sq. Ft. Low
116550028000 19461 POSEY LN
REDDING, CA 96003 BLDR‐2022‐04602 989 SQ. FT. DETACHED ADU MARKET RATE = $1978 989 0 Market Rate $2/Sq. Ft. Above Moderate
073420027000 19334 HOLLOW LN
REDDING, CA 96003 BLDR‐2023‐00861 NEW CONSTRUCTION 990 SQ. FT.
DETACHED ADU Family Occupied ‐ not charging rent. 990 0 N/A Very Low 115450003000 1171 KELLINGER ST
REDDING, CA 96003 BLDR‐2023‐03155 726 SQ. FT. ADU MARKET RATE = $1452 726 1 Market Rate $2/Sq. Ft. Moderate
105120016000 1319 ALMOND AVE
REDDING, CA 96001 BLDR‐2022‐05963 DETATCHED 476 SQ. FT. ADU MARKET RATE = $948 476 1 Market Rate $2/Sq. Ft. Low
050800029000 7292 LEGACY CT
REDDING, CA 96001 BLDR‐2022‐02048 NEW CONSTRUCTION 543 SQ. FT.
NON‐ENGINEERED ADU Family Occupied ‐ not charging rent. 543 1 N/A Very Low 116210027000 5651 CASCADE DR
REDDING, CA 96003 BLDR‐2023‐02767
PROJECT INCLUDES THE CONSTRUCTION
OF A NEW ACCESSORY DWELLING UNIT;
SOUTHEAST CORNER OF THE PROPERTY
MARKET RATE = $800 400 1 Market Rate
$2/Sq. Ft. Low
103670027000 802 PERI DR
REDDING, CA 96001 BLDR‐2022‐04810
CONSTRUCT 690 SQ. FT. SINGLE‐FAMILY
DWELLING WITH ATTACHED 676 SQ. FT.
GARAGE
Family Occupied ‐ not charging rent. 690 1 N/A Very Low 105470016000 2247 PLACER ST
REDDING, CA 96001 BLDR‐2023‐00537 1000 SQ. FT. DETACHED ADU $1600/month 1000 2 Affordability Calculator Moderate
116110021000 621 RIDGE RD UNIT: B
REDDING, CA 96003 BLDR‐2023‐03714 CONVERT EXISTING ATTACHED GARAGE TO 456 SQ. FT. ADU MARKET RATE = $874 437 1 Market Rate $2/Sq. Ft. Low
108010002000 2638 SHARON AVE UNIT: C
REDDING, CA 96001 BLDR‐2023‐02104 CONVERT EXISTING 720 SQ. FT.
ATTACHED GARAGE INTO ADU $1350/month 720 1 Affordability Calculator Moderate
112080022000 300 AGATE WAY UNIT: B
REDDING, CA 96003 BLDR‐2023‐00883 REMODEL PORTION OF HOUSE TO CREATE ADU $1600/month ‐ Furnished Finder 367 1 Affordability
Calculator Moderate
105070005000 1149 ALMOND AVE UNIT: B
REDDING, CA 96001 BLDR‐2023‐01036 CONSTRUCT A 458 SQ. FT. JUNIOR ADU IN EXISTING BASEMENT MARKET RATE = $916 458 0 Market Rate
$2/Sq. Ft. Low
067430037000 2750 RESERVOIR LN UNIT: A
REDDING, CA 96002 BLDR‐2023‐01014 REMODEL STORAGE SHED INTO 417 SQ.
FT. ADU not charging rent 417 1 N/A Very Low
115200005000 350 BEDROCK LN
Redding, CA 96003 CARR‐BLD‐2021‐04303 CARR FIRE REBUILD; 2793 SQ. FT. MARKET RATE = $1082 541 1 Market Rate $2/Sq. Ft. Low
108290052000 497 SMILE PL
REDDING, CA 96001 BLDR‐2023‐01156 CONSTRUCTION NEW 1000 SQ. FT.
DETACHED ADU $1550/month 1000 2 Affordability
Calculator Moderate
108130048000 2022 EL RENO LN
REDDING, CA 96001 BLDR‐2023‐01349 (AS BUILT) CONVERTED DETATCHED GARAGE TO ADU $825/month ‐ Son. 640 1 Affordability
Calculator Low
067460018000 2715 ALFREDA WAY
REDDING, CA 96002 BLDR‐2022‐05961 REMODEL EXISTING SHOP INTO ADU (BEHIND 2713, IN THE BACKYARD)
$1400 ‐ Rented for 2 months through management
company 797 2 Affordability
Calculator Low
112170018000 1627 SANTA FE AVE
REDDING, CA 96003 BLDR‐2024‐00084 ENGINEERED MODULAR DETACHED 455 SQ. FT. ADU MARKET RATE = $910 455 1 Market Rate
$2/Sq. Ft. Low
073370036000 11519 LA COSTA CT
REDDING, CA 96003 BLDR‐2024‐00726 NEW DETACHED MODULAR 774 SQ. FT.
ADU MARKET RATE = $1548 774 2 Market Rate
$2/Sq. Ft. Moderate
102010043000 1606 VERDA ST
REDDING, CA 96001 BLDR‐2024‐01689 NEW 540 SQ. FT. ADU MARKET RATE = $1080 540 1 Market Rate $2/Sq. Ft. Low
103430060000 3060 SOUTH ST
REDDING, CA 96001 BLDR‐2024‐01992 CONVERT ATTACHED GARAGE TO 476 SQ.
FT. ADU MARKET RATE = $960 480 0 Market Rate
$2/Sq. Ft. Low
204760025000 4714 LOWER SPRINGS RD
REDDING, CA 96001 BLDR‐2023‐03945 NEW ADU FOR RESIDENTIAL LOT not charging rent 392 1 N/A Very Low Information in this table represents results from a combination of phone surveys and market rate affordability analysis conducted in February 2025 to determine affordability levels for Accessory Dwelling Units (ADUs) constructed in 2024. Several respondents to phone surveys provided the amount of rent charged for their ADU. This information was used to determin a market rate per square‐foot (see Appendix Table L) and the affordability calculator was used to determine the affordability level for each unit. Units where respondents were not charging rent are recognized as providing a very low affordability level. Units where no response was provided were calculated using the affordability calculator and the average market rate ($2/square‐foot) for units applied for, issued permits, and constructed in 2024.
APPENDIX TABLE M: ADU Phone Survey & Affordability Determination for Units Constructed in 2024 Packet Pg. 73
Attachment: ^Appendix Table M - ADU Phone Survey Affordability Determination 2024 (4.4(a)--2024
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to the City of Redding Whale Tail Grant:
(1) Accept the California Natural Resources Agency – California Coastal Commission Whale Tail Grant in the amount of $50,000;
(2) Authorize the City Manager, or designee, to execute the grant agreement and associated documents for the California Natural Resources Agency – California Coastal Commission Whale Tail Grant FY 2024-25 project; and
(3) Adopt Resolution approving and adopting the 71st Amendment to Budget Resolution No. 2023-060 appropriating $50,000 in state funding for the California Natural Resources Agency – California Coastal Commission Whale Tail Grant.
Fiscal Impact
The California Natural Resources Agency – California Coastal Commission Whale Tail (CCCWT) Grant Program funds allow the City of Redding to provide 36 elementary-aged youth from the Dr. Martin Luther King Jr. Center a ccess to a subsidized six-week educational summer camp. There is no impact to the General Fund.
Alternative Action
The City Council (Council) could choose to not accept the $50,000 CCCWT Grant Program funds. In this case, other funds would need to be identified to cover this expense or the program could be suspended for 2025. Or, Council could provide staff with alternate direction.
MEETING DATE: March 18, 2025
ITEM NO. 4.6(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.6(a)--Accept Grant from the California Coastal Commission and Adopt Resolution to fund the W hale Tail Summer Camp Program for the Dr. Martin Luther King Jr.
Center
Travis Menne, Director of
Community Services
Packet Pg. 74
Report to Redding City Council March 13, 2025
Re: 4.6(a)--Accept Whale Tail Grant Award from the California Coastal Commission Page 2
Background/Analysis
The mission of the California Coastal Commission is “to protect, conserve, restore and enhance the environment of the California coastline.” As part o f its mission, the California Coastal Commission manages the Protect Our Coast and Oceans Fund to connect people to the California Coast and its watershed through education, stewardship and outdoor experiences. Funding is provided to organizations that offer these opportunities for youth or adults.
Since 2017, Redding Recreation has received $ 74,000 in grant funding from the California Coastal Commission to provide City of Redding youth with opportunities to learn about the California Coast and its waters heds through programs and outdoor experiences. Approximately 36 elementary-aged youth from the Dr. Martin Luther King Jr. Center will benefit from this six - week summer camp program. The summer camp will provide them the opportunity to engage in the interc onnectedness of the Sacramento River and the Pacific Ocean through art curriculum and weekly field trips, culminating in a day trip to the Humboldt Coast for a beach clean -up during the Summer of 2025.
The City Attorney’s Office has reviewed and approve d the proposed language of the Standard Grant Agreement.
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
• 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.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current bu sinesses and attract new ones, and encourage investment in the community.”
Attachments
^Resolution
DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## Packet Pg. 75
RESOLUTION NO. 2025-___
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 71st AMENDMENT TO CITY BUDGET RESOLUTION NO. 2023-060 APPROPRIATING $50,000 IN STATE FUNDING FOR THE CALIFORNIA NATURAL RESOURCES AGENCY – CALIFORNIA COASTAL COMMISSION WHALE TAIL GRANT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2023-060 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
102
1793 Recreation & Parks Operating
Grants
$50,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Decrease (Increase) Fund Balance
102-1793-3622601-00000 State Grant Operating - Recreation & Culture 50,000$ Increase Expenditures
102-1793-6490901-00000 State Operaing Grant Activities - Other 50,000$ Total 50,000$ 50,000$
THAT the purpose is to appropriate $50,000 in state funding for the California Natural Resources Agency – California Coastal Commission Whale Tail Grant.
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 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. 76
Attachment: ^Resolution (4.6(a)--Accept Whale Tail Grant Award from the California Coastal Commission)
CALIFORNIA COASTAL COMMISSION
STANDARD GRANT AGREEMENT
(Rev 02/2024) AGREEMENT NUMBER
LCP/WT/GF-WT/PC-23-##
STATE CONTROLLER’S OFFICE IDENTIFIER FEDERAL ID NUMBER
3720-LCP/WT/GFWT/PC####
1. This Agreement is entered into between the State Agency and the Grantee named below:
STATE AGENCY'S NAME
California Coastal Commission
GRANTEE'S NAME
City of Redding
2. The term of this
Agreement is: March 19, 2025 Through September 30, 2025 (End Term Date)
3. The maximum amount $ 50,000.00
of this Agreement is:
4. The parties agree to comply with the terms and conditions of the following EXHIBITS, which are by this reference made a part of the Agreement.
EXHIBIT A – Scope of Work # pages
EXHIBIT A1- Definitions 2 pages
EXHIBIT B – Budget # pages
EXHIBIT B1 – Budget Detail and Payment Provisions # pages EXHIBIT C – General Terms and Conditions 4 pages
EXHIBIT D – Special Terms and Conditions
4 pages
Check mark one item below as EXHIBIT D Attachment:
EXHIBIT D1 – Local Coastal Programs Terms and Conditions
9 pages
EXHIBIT D2 – WHALE TAIL® Terms and Conditions 3 pages
EXHIBIT E – Grantee Certification Clauses Form (GCC-01/2019) 4 pages EXHIBIT F – Amendment Template (Informal)
1 page
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
GRANTEE California Coastal Commission
Use Only
This agreement is exempt from
approval by the Department of General
Services per SCM Vol. 1 4.06 (see 58 Ops.
Cal. Atty. Gen 586 and 63 Ops. Cal. Atty.
Gen. 290).
GRANTEE’S NAME (if other than an individual, state whether a corporation, partnership, etc.) City of Redding
BY (Authorized Signature)
DATE SIGNED (Do not type)
PRINTED NAME AND TITLE OF PERSON SIGNING
Barry Tippin, City Manager
ADDRESS
777 Cypress Avenue, Redding, CA 96001
STATE OF CALIFORNIA
AGENCY NAME
California Coastal Commission
BY (Authorized Signature)
DATE SIGNED (Do not type)
PRINTED NAME AND TITLE OF PERSON SIGNING
Madeline Cavalieri, Deputy Executive Director
ADDRESS
455 Market Street, Suite 200, Room 228, San Francisco, CA 94105 Packet Pg. 77
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT A
SCOPE OF WORK
(WHALE TAIL®)
1. Grantee agrees to expend grant funds provided by the Commission only for and in accordance with project activities as described under the Scope of Work attached hereto as EXHIBIT A.
2. The Project representatives during the term of this agreement will be:
State Agency:
California Coastal Commission
Grantee:
City of Redding
Annie Kohut Frankel
Public Education Program Manager
Name: Barry Tippin
Title: City Manager
Address:
455 Market Street, Suite 200, Room 228
San Francisco, CA 94105
Address:
777 Cypress Avenue
Redding, CA 96003
Phone: (415) 687-9953 Phone: (530) 225-4063
Email: [email protected] Email: [email protected]
3. All inquiries will be directed to:
State Agency:
California Coastal Commission
Grantee:
City of Redding
Name: Annie Kohut Frankel
(“Grant Manager”)
Name: Allyson Harris
Title: Recreation Superintendent
Address:
455 Market Street, Suite 200, Room 228
San Francisco, CA 94105
Address:
777 Cypress Avenue
Redding, CA 96003
Phone: (415) 687-9953 Phone: (530) 225-4474
Email: [email protected] Email: [email protected] Packet Pg. 78
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT A
SCOPE OF WORK
Protect Our Coast and Oceans Fund Grant
Local Assistance Funds
WHALE TAIL® Grants Program
Title: From Land to Sea: The Pathways of our Water
Organization: City of Redding
Term of Project: March 19, 2025 – September 30, 2025
Federal Tax ID#: 94-6000401
A. PROJECT DESCRIPTION
The City’s Martin Luther King Jr. Center will host a six-week summer camp to engage elementary-age youth in the interconnectedness of the Sacramento River and the Pacific Ocean through an art curriculum and weekly field trips, culminating in a day trip to the Humboldt coast for a beach cleanup.
This project will engage 36 youth ages 6-12, from Redding’s Martin Luther King Jr neighborhood, youth in the foster care system referred to the Martin Luther King Jr.
Center, and youth referred to the Center by the Youth Violence Prevention Council.
This six-week program will take place from 9am-3:30pm Monday through Thursday.
Curriculum will draw largely from Project WET and Project WILD and weekly themes will be the Sacramento River to the Pacific Ocean, Water Flows in All Ways, Sacramento River Ecosystems, Sacramento River Habitats, Ocean Ecosystems, and Ocean Habitats. Weekly field trips will include Shasta Lake Dam tour, river rafting on the Sacramento River, Whiskeytown Lake sailing/kayaking, Coleman Fish Hatchery, Lassen National Park, and finally Arcata for a beach restoration and cleanup activity with Friends of the Dunes.
To evaluate impact, a summative assessment follows each lesson, educators will observe student performance, and self and peer evaluations will take place. Field trips will be assessed with the Evaluation Design Checklist and Evaluation Toolkit created by NOAA for the California B-WET grant program.
Grantee will recognize the California Coastal Commission’s Whale Tail Grant funding on social media posts, in presentations to participants, on promotional flyers and on the participant shirts.
Packet Pg. 79
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT A
Goals and Objectives:
Sacramento to Sea Program Goals Program Objectives
1. Participants will gain
environmental sensitivity toward the
Sacramento Watershed and
understand the importance of inland
waterways, like the Sacramento
River, and its direct connection to
the Pacific Ocean.
• Describe the Sacramento Watershed,
including the origins and connection of the
Sacramento River to the Pacific Ocean.
• Describe how pollutants entering storm
drains flow into the rivers, streams, and
oceans.
• Describe the path water from the
Sacramento River takes to get to the
ocean.
2. Participants will understand
major ecological concepts and
knowledge of natural systems,
wildlife, and water resources.
• Describe water’s unique physical and
chemical characteristics
• Describe the origins of the Sacramento
River and the diversity of habitats and
ecosystems that exist along its length.
3. Participants will understand
environmental problems and issues
regarding water quality, quantity,
and management.
• Describe how individuals and communities
of people manage water resources
• Describe how water resource
management bodies resolve issues based
on needs and issues.
4. Participants will be able to define
problems, to analyze, synthesize,
and evaluate information, and plan,
implement, and evaluate action
• Students will show they’re more
knowledgeable of their local natural
environment and describe several actions
they can take as environmental stewards
• Students will be able to conduct
experiments, collect field data, and explain
the significance of their results.
5. Participants will understand that
their actions affect local waterways,
which have implications
downstream and all the way to the
Pacific Ocean.
• Describe what career paths exist in the
field of marine conservation
• Describe what career paths exist for
scientists in the field of marine ecology
6. Participants will actively
participate in environmentally
responsible endeavors aimed at
solving problems related to the
health of the Sacramento
Watershed.
• Participants will show their investment in
the local environment by participating in
cleanup/conservation with the Friends of
the Dunes in Arcata, CA
• Participants will show their investment in
the California marine environment by
participating in a day trip to the Northern
California Coast.
Packet Pg. 80
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT A
B. TASKLIST AND TIMELINE
March-May 2025:
• Preparation and planning
June 16 -August 1, 2025:
• Summer camp takes place
September 2025:
• Evaluation and grant reporting
Packet Pg. 81
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT A
C. EVALUATION AND REPORTING
A final report will be due to the Coastal Commission, as specified below.
Final Report. Your final report is submitted at the end of the contract period. It tells the story of your project including what was accomplished and learned. In addition to informing the Coastal Commission about the results of your project, the final report serves several purposes. It helps the Whale Tail Grants Program hold itself accountable to the goals of supporting marine and coastal education and conservation with an emphasis on communities that have historically received fewer such opportunities. And when we share the results of the Program, based on reports from grant recipients, it’s a way for the public to hold us accountable. Your final report is also an opportunity for us to learn from your experience, which will help strengthen the Whale Tail Grants Program in the future.
(If you have already presented some of the information below in another format, such as an annual report, you may substitute that for the relevant questions below. We do, however, need details that are specific to the project that was paid for by this grant.)
Please include the following in your final report:
A. Introduction — A brief recap of the project that was funded by the grant. (This could be a summary of the project description in your grant agreement.)
B. Participants/Audience — A description of program participants or audience. If you have multiple types of engagements/experiences in your project with different participants, be sure to break down participation by project element if appropriate. Be as specific as possible, including the following:
• How many people did you engage through this grant?
• What type of outreach did you do, and where? How did people learn about your program?
• What were your participant demographics, as applicable, for example race/ethnicity, age or grade level, English/non-English speakers, income level or other income indicators such as percent of students eligible for free and reduced lunch program, LGBTQ2S+ status, disability status, and/or other descriptors and identities. Please include numbers or percentages whenever possible. • If working with students, include the school name(s) and city and how many students you engaged from each school.
• If project participants are not reached through schools, what city or neighborhood(s) are they from? Please include numbers or percentages whenever possible.
C. Program Implementation — A description of what happened.
Packet Pg. 82
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT A
• List your original project goals and objectives (see project description). Provide a summary of what was accomplished relative to the project goals and objectives.
If any goals or objectives changed during the course of your project, describe that here.
• Include any other details you think are helpful to understanding what happened during your project.
• If applicable, describe any unanticipated factors that impeded or contributed to the success of your program. How were they handled? In hindsight, would you have done anything differently?
• If this program will continue past the grant period, do you plan to make changes in the future?
• How and with whom did you share the outcome of your program, as applicable?
D. Funding Recognition — How and where did you recognize the Whale Tail Grants Program as a funder of your project? Include screenshots and copies of relevant materials.
E. Tracking and Assessing Impact — How and what do you know about your program’s impact?
• In what way(s) did you collect or capture data about your project’s impact? How did you evaluate your success?
• What do your results tell you about your impact? How might it shape your future work?
• Include relevant data, which, depending on your project, might include participant quotes, interview notes, survey results, sample student products, pounds of trash collected, or other types of data you collected to measure impact. • As applicable, include samples of the tools you used to track and measure your impact, such as surveys, pre/post tests, or data sheets.
F. Any media coverage of your project. Include pdfs of articles, links to websites, or other evidence of coverage if applicable.
G. Copies of all products created as part of this grant, such as translations, outreach pieces, curricula, how-to manuals, as applicable.
H. Photographs illustrating your project.
• Submit jpgs or pngs as separate files rather than (or in addition to) embedded in a document. These can be sent as email attachments or as a link to a cloud folder. Make sure the folder is accessible if using this method. • Note whether the Coastal Commission has permission to use and share your photos to publicize the results of the WHALE TAIL® grants program. If permission Packet Pg. 83
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT A
is granted, photos may be used on webpages, in presentations or reports, or on social media, with credit to your organization.
Packet Pg. 84
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT A1
DEFINITIONS
1. The term “Agreement”; this Grant Agreement.
2. The term “Budget Act”; the annual enacted version of the Budget Bill which makes appropriations for the support of the government of the State of California.
3. The term “Deputy Executive Director”; the Deputy Executive Director of the Commission.
4. The terms “Commission” or “Coastal Commission” and the acronym “CCC” all refer to the California Coastal Commission.
5. The term “Executive Director”; the Executive Director of the Commission.
6. The term “Grant” or “Grant Funds”; in the case of LCP grants, the money provided by the California Climate Investments program or, in the case of Public Education grants, sales and renewals of the WHALE TAIL® Specialty License Plate, or California’s Voluntary Tax Check-Off Program, or General Fund/Local Assistance, and administered by the Coastal Commission to the Grantee pursuant to this Agreement.
7. The term “Grant Manager”; the representative of the Commission with authorization per the Executive Director to administer and provide oversight of the Grant.
8. The term "Grantee"; an applicant who has a signed agreement for Grant Funds.
9. The term "Project"; the activity described under the Scope of Work, attached as EXHIBIT A, to be accomplished with Grant Funds.
10. The term “Project Budget”; the Commission approved cost estimate submitted to the Commission’s Grant Manager for the Project. The Project Budget shall describe all labor and material costs of completing each component of the Project. The Project Budget shall contain itemized amounts permissible for each item or task described in the Scope of Work. The Project Budget must include the set administrative and indirect costs agreed upon by the Parties if applicable.
11. The term “Public Agency”; any State of California department or agency, a county, city, public district or public agency formed under California law.
12. The term “Scope of Work” refers to EXHIBIT A, including the approved Project Description, Tasks, and Schedules.
13. The term “Termination Date”; the date by which all activity for the project must be concluded, as specified in the signature page of this Agreement. Work performed after this date cannot be reimbursed.
Packet Pg. 85
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT B
BUDGET
(WHALE TAIL®)
2024/25
Protect Our Coast and Oceans Fund
Personnel Services
Salary and Wages
Recreation Coordinator I ($20.13/hr x 224 hrs) $4,509
Recreation Instructor II Step 1 ($19.17/hr x 126 hrs) $2,415 Recreation Instructor II Step 2 ($21.14/hr x 126 hrs) $2,664 6 Recreation Leaders ($16.50/hr x 756 hrs) $12,474
Subtotal Salary and Wages $22,062
Benefits $2,427
Total Personnel Services $24,489
Operating Expenses
General Expenses* $3,661
Travel In State** $8,000
Contracts External*** $13,850
Total Operating Expenses $25,511
Administrative Overhead $0
Total Budget $50,000
* General Expenses include educational materials, field trip supplies, t-shirts for campers, field trip fees.
** Travel Expenses include bus fees. Auto travel reimbursement rates are subject to State Travel Rates and IRS Adjustments. All travel reimbursement is subject to approval by Commission staff and limited to the total funds available in this line item. See Exhibit D-Travel Reimbursement.
*** Contracts External include Curriculum Instructors, Headwater Adventure Club for kayaking, lifeguards, and Friends of the Dunes for field trip activities.
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EXHIBIT B1
BUDGET DETAIL AND PAYMENT PROVISIONS
(WHALE TAIL®)
1. Request for Funds
A. For performance of project activities deemed satisfactory by the Commission’s Grant Manager during the term of this Agreement as specified in EXHIBITS A and B (Scope of Work and Project Budget) and upon receipt and approval of submitted invoices, the Commission agrees to reimburse Grantee for actual expenditures incurred in accordance with the rates specified herein or attached hereto.
B. Invoices shall be submitted in arrears not more frequently than monthly via email (preferred method) to [email protected] or mailed in duplicate to:
California Coastal Commission
Attn: Annie Frankel, Public Education Program
455 Market Street, Suite 200, Room 228
San Francisco, CA 94105
C. Invoices shall contain the following information:
1. Grantee’s name and address as shown on this Agreement.
2. Invoice number and date of the invoice.
3. Time period covered by the invoice.
4. Grant number as shown on this Agreement.
5. Original or digital signature of the grantee.
6. Itemized costs for the billing period in the same or greater level of detail as indicated in this agreement, with supporting documentation. Only those costs and/or cost categories expressly identified in this agreement may be reimbursed.
D. Notwithstanding the foregoing, the Grant Manager of the Commission may request and the Grantee shall provide receipts or other source documents for any other direct expenditure or cost as described in the invoice, as and when necessary to resolve any issue concerning reimbursement.
E. The Grantee’s failure to fully execute and submit an invoice, including attachment of supporting documents, may relieve the Commission of its obligation to disburse funds to the Grantee unless and until the Grantee corrects all deficiencies.
F. Any invoice that is submitted without the required itemization and documentation will not be authorized. If the invoice is incomplete, inadequate or inaccurate, the Packet Pg. 87
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EXHIBIT B1
Commission will inform the Grantee and withhold payment until all required information is received or corrected. Any monetary claims made by a contractor against the Grantee, or other consequence, because of delays in payment shall be the sole responsibility of the Grantee and is not reimbursable under this Agreement.
Grantee further agrees to indemnify the Coastal Commission from any such claim, and the parties herein expressly agree that provision of grant funds to Grantee pursuant to this Agreement does not create any sort of relationship as between the Grantee’s contractor(s) and the Coastal Commission.
G. Grant Funds in this award have a limited period in which they must be expended.
Grantee expenditures funded by the Commission must occur before the Termination Date.
H. The Grantee shall expend Grant Funds in the manner described above in EXHIBIT A (Scope of Work) and itemized in EXHIBIT B (Budget), subject to approval by the Coastal Commission’s Grant Manager. Expenditure on items contained in the approved Project Budget may vary by as much as ten percent without prior approval by the Commission. In any event, the total amount of the Grant Funds may not be increased, except by written amendment to this Agreement.
2. Budget Contingency Clause
A. It is mutually agreed that if the final Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the Grant Program, this Agreement shall be of no further force and effect, and the Commission shall have no liability to pay any funds whatsoever to Grantee or to furnish any other consideration under this Agreement and Grantee shall not be obligated to continue performance under the provisions of this Agreement.
B. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this Grant Program, the Commission shall have the option at its sole discretion to either cancel this Agreement with no liability accruing to the Commission or enter into an agreement amendment with Grantee to reflect the reduced amount.
3. Prompt Payment Clause
Payment will be made no later than 45 days following receipt of properly submitted, undisputed invoices except as otherwise set forth in, and in each case in accordance with, the California Prompt Payment Act, Government Code section 927, et seq.
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EXHIBIT C
GENERAL TERMS AND CONDITIONS
1. APPROVAL: This Agreement is of no force or effect until signed by both parties and approved by the California Coastal Commission. Grantee may not commence performance until such approval has been obtained.
2. AMENDMENTS: This Agreement may only be amended by mutual agreement in writing between Grantee and the Commission. Any request by the Grantee for an amendment must state the amendment request and reason for the request and shall be submitted in writing, such as by email or letter. The Grantee shall strive to make requests immediately upon discovering that an amendment may be needed. No oral understanding or agreement not incorporated into the Agreement in writing is binding on the parties.
Except as otherwise provided herein, the Grantee shall expend Grant Funds in the manner described in the Scope of Work (EXHIBIT A) and Project Budget (EXHIBIT B) approved by the Commission. In any event, the total amount of the Grant Funds may not be modified, except by written amendment to this Agreement. Any subsequent changes or additions to the Scope of Work and Project Budget approved by the Commission in writing are hereby incorporated by reference to this Agreement as though set forth in full in this Agreement. Changes to the grant term and/or the total amount of Grant Funds will require a formal amendment, while changes to Scope of Work (EXHIBIT A) and the Project Budget (EXHIBIT B) may be done through an informal amendment, found in EXHIBIT F.
3. ASSIGNMENT: This Agreement is not assignable by the Grantee, either in whole or in part, without the consent of the Commission in the form of a formal or informal written amendment.
4. INDEMNIFICATION: Grantee agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all consultants, subconsultants, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Grantee in the performance of this Agreement.
5. DISPUTES: Grantee shall continue with the responsibilities under this Agreement during any dispute.
6. NO CREATION OF AGENT RELATIONSHIP: Grantee, and the agents and employees of Grantee, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the State.
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EXHIBIT C
7. NON-DISCRIMINATION CLAUSE: During the performance of this Agreement, Grantee and its consultants, subconsultants shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (e.g., cancer), age (over 40), marital status, and denial of family care leave. Grantee and consultants shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.
Grantee and consultants shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. Grantee and its consultants shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
Grantee shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement.
8. CERTIFICATION CLAUSES: The GRANTEE CERTIFICATION CLAUSES contained in the document GCC-1/2019 are hereby incorporated by reference and made a part of this Agreement (EXHIBIT E) by this reference as if attached hereto.
9. TIMELINESS: Time is of the essence in this Agreement.
10. COMPENSATION: The consideration to be paid Grantee, as provided herein, shall be in compensation for all of Grantee's expenses incurred in the performance hereof, including travel, per diem, and taxes, unless otherwise expressly so provided.
11. GOVERNING LAW: This agreement is governed by and shall be interpreted in accordance with the laws of the State of California.
12. ANTITRUST CLAIMS: The Grantee by signing this agreement hereby certifies that if services or goods are obtained through a public purchase by means of a competitive bid, the Grantee shall comply with the requirements of the Government Codes Sections set out below.
a. The Government Code Chapter on Antitrust claims contains the following definitions:
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EXHIBIT C
1) "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code.
2) "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section 4550.
b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552.
c. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553.
d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554.
13. CHILD SUPPORT COMPLIANCE ACT: For any Agreement in excess of $100,000, the Grantee acknowledges in accordance with Public Contract Code 7110, that:
a. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and
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EXHIBIT C
b. The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.
14. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.
15. PRIORITY HIRING CONSIDERATIONS: If this Agreement includes services in excess of $200,000, the Grantee shall give priority consideration in filling vacancies in positions funded by the Agreement to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code §10353.
16. AUDIT REQUIREMENTS AND FINANCIAL RECORDKEEPING: Commission projects are subject to audit by the State annually and for three (3) years following the payment of Grant Funds. Accordingly, Grantee shall maintain orderly, accurate and complete documents and records of all financial accounts, costs, disbursements, receipts and other matters relating to this Agreement consistent with the policies outlined in EXHIBIT C, hereto, for the Project and shall make them available to the State or the Commission for auditing, inspecting and copying at reasonable times.
Grantee agrees to allow the auditor(s) to interview any employees who might reasonably have information related to such records. Further, Grantee agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub.
Contract Code §10115 et seq., CCR Title 2, Section 1896). Grantee shall also retain such documents and records for three (3) years after final payment and one (1) year following an audit unless a longer period of records retention is stipulated. The documents for audit should be retained onsite.
Grantee shall use applicable Generally Accepted Accounting Principles published by the American Institute of Certified Public Accountants.
If Grantee stated in the Project Budget that other sources of funding will be used to complete the Project, the Grantee shall establish internal systems to track expenditures of matching or in-kind funds on a regular basis and will make the documentation available to the Commission upon request.
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EXHIBIT D
Special Terms and Conditions
3. PROJECT EXECUTION:
A. Grantee shall complete the Project before the Termination Date.
B. Subject to the availability of funds, the Commission hereby grants to the Grantee the sum $50,000 (Grant Funds) not to exceed the amount stated on the signature page in consideration of and on condition that the sum be expended in carrying out the purposes as set forth in the description of the Project in this Agreement and its attachments and under the terms and conditions set forth in this Agreement.
C. Prior to the commencement of any Project work, Grantee agrees to submit in writing to the Commission for prior approval any deviation from the original Scope of Work pursuant to EXHIBIT A and the Project Budget pursuant to EXHIBIT B. Changes in the Scope of Work or Project Budget must continue to ensure timely and effective completion of the Project, including where applicable a new or updated Local Coastal Program for certification by the Commission. Any modification or alteration in the Scope of Work or Project Budget on file with the Commission must be submitted to the Commission for approval. Changes to the Scope of Work or Project Budget shall require an amendment to this Agreement (see “Amendments” under EXHIBIT C).
D. Grantee shall furnish any and all additional funds that may be necessary to complete the Project.
E. As applicable, Grantee shall ensure that Project work excludes any and all Project work that was funded through previously awarded grants or the matching funds identified through previously awarded grants so as to ensure that current grant funding is not duplicative of previous grant funding. Such grants include, but are not limited to, WHALE TAIL® Grants; other grants previously awarded by the Coastal Commission; grants awarded by the Ocean Protection Council, California State Parks, the Natural Resources Agency, the State Coastal Conservancy, and other governmental and non-governmental entities.
F. Final invoicing shall be submitted promptly following the termination date of the grant or upon a date mutually agreed upon by the Grantee and the Grant Manager.
G. Grantee certifies that the Project does and will continue to comply with all current laws and regulations which apply to the Project, including, but not limited to, the California Coastal Act, health and safety codes, and disabled access laws.
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EXHIBIT D
2. POTENTIAL CONSULTANTS/CONTRACTORS
Nothing contained in this Agreement or otherwise, shall create any contractual relation between the Commission and any consultants, and no contract shall relieve the Grantee of its responsibilities and obligations hereunder. The Grantee agrees to be as fully responsible for the acts and omissions of its consultants and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the Grantee. The Grantee’s obligation to pay its consultants is an independent obligation from the Commission’s obligation to make payments to the Grantee. As a result, the Commission shall have no obligation to pay or to enforce the payments of any moneys to any consultants.
The Grantee agrees to include in any agreement with any consultant and/or subconsultant under the Grant Project terms that preserve the rights, interests, and obligations for the benefit of the Commission and its funding sources as described in EXHIBIT C (“General Terms and Conditions”) and EXHIBIT D/D1/D2 (“Special Terms and Conditions”) of this Grant Agreement.
If all or any part of the Project to be funded under this Agreement will be performed by third parties under contract with the Grantee, prior to executing an agreement for services, the Grantee shall inform the Grant Manager of the selection of the third party.
Grantees seeking subcontractors under this Agreement to perform any services exceeding the cost of $10,000.00 shall select those contractors pursuant to a process that seeks three competitive quotations or adequate justification for the absence of bidding.
All consultants and subcontractors are subject to all terms and conditions of this agreement in accordance with the California State Contracting Manual. Consultants seeking travel reimbursement see “Travel Reimbursement” clause below.
3. PROPERTY PURCHASED
The Grantee agrees to continue using property purchased under this Agreement for the purposes outlined in this Agreement or similar activities until it is fully consumed (i.e., is either fully distributed, damaged, worn-out, or becomes obsolete).
Grantees shall receive prior authorization in writing by the Commission before reimbursement for any purchase order or subcontract exceeding $10,000.00 for any articles, supplies, equipment, or services. The contractor shall provide in the request for authorization all particulars necessary for evaluation of the necessity or desirability of incurring such cost and the reasonableness of the price or cost.
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EXHIBIT D
4. SETTLEMENT OF DISPUTES
If the Grantee believes that there is a dispute or grievance between Grantee and the Commission arising out of or relating to this Agreement, the Grantee shall first discuss and attempt to resolve the issue with the Commission’s Grant Manager. If the issue cannot be resolved at this level, the Grantee shall follow the following procedures:
If the issue cannot be resolved directly with the Grant Manager, the Grantee shall submit, in writing, a grievance report together with any evidence to the Deputy Executive Director of the Commission. The grievance report must state the issues in the dispute, the legal authority, or other basis for the Grantee’s position and the remedy sought.
Within ten (10) days after receipt of the grievance report, the Deputy Executive Director, or his/her designee, shall meet in person or via phone with the Grantee and the Grant Manager for purposes of resolving the dispute. The decision of the Deputy Executive Director following such a meeting shall be final.
5. WAIVER AND RELEASE
Grantee hereby waives all claims and recourses against the Commission, including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this Agreement, except for claims for reimbursement of costs due under this Agreement, recovery of which shall be limited to the total amount properly incurred hereunder and in no event exceed the total amount of Grant Funds provided for hereunder. Grantee acknowledges that it is solely responsible for its compliance with the terms of this Agreement.
6. REALLOCATION OF FUNDS
If Grantee fails to meet the performance criteria and/or Benchmarks in this Agreement, the Executive Director or his designee may immediately upon written notice cancel this Agreement or request to amend the Agreement, and as feasible, re-allocate any unspent funds to one or more of the other approved Grantees that needs additional funding or whose grant was not fully funded.
Should a Grantee not need the full amount of funds awarded by the Commission, they shall notify the Grant Manager as soon as possible so that any remaining allocated but unspent funds may be redistributed, as feasible. In addition, should Grantee fail to enter into an agreement necessary for its performance hereunder in a timely manner, the Executive Director or his designee may, upon Commission approval, reallocate funds to supplement an already awarded grant.
7. SURVIVAL
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EXHIBIT D
(EXHIBIT C), and in the “ACKNOWLEDGMENT” and “WORK PRODUCT” clauses in the Special Terms and Conditions (EXHIBIT D1), as well as any other provisions in this Agreement that by their nature are intended to survive termination or expiration, shall survive the termination of this Agreement.
8. WAIVERS GENERALLY
No term or provision hereof will be considered waived by either party, and no breach excused by either party, unless such waiver or consent is in writing and signed on behalf of the party against whom the waiver is asserted. No consent by either party to, or waiver of, a breach by either party, whether expressed or implied, will constitute consent to, waiver of or excuse of any other, different or subsequent breach by either party.
9. EXECUTIVE DIRECTOR’S DESIGNEE
The Executive Director shall designate a Commission staff Grant Manager who shall have authority to act on behalf of the Executive Director with respect to this Agreement.
Grantee shall be notified of such designation in writing.
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EXHIBIT D2
WHALE TAIL® Terms and Conditions
1. ACKNOWLEDGEMENT
The Grantee shall acknowledge the support of the Commission, and specifically that the funding is from the Commission’s WHALE TAIL® Grants Program, on publicity, outreach or educational materials prepared under this Agreement, or when publicizing such work in any media. The WHALE TAIL® License Plate and Protect Our Coast and Oceans graphics should be used for such acknowledgement wherever possible. If placed online, the graphic should link to www.ecoplates.com wherever possible. Grantee shall consult with the Commission’s Grant Manager for use of the funding credit logo.
2. APPROVALS
Signage created with grant funding will be submitted for review and approval from the Commission, and will include credit to the funding source. At the Commission’s request, the Grantee shall seek prior Commission approvals on the locations, costs, dates, agenda, instructors, instructional materials, and attendees at any reimbursable training seminar workshop or conference, and on any reimbursable publicity or educational materials to be made available for distribution.
3. TRAVEL REIMBURSEMENT
The Commission will reimburse food as included in the Project Budget pursuant to EXHIBIT B at actual costs not to exceed $20 per person per meal. The Commission will reimburse other travel and related expenses at actual costs not to exceed the State rates provided in Title 2, Division 1, Chapter 3, Subchapter 1, Article 2 of the California Code of Regulations. Grantees may seek reimbursement for any travel expenses that are in excess of these state rates, but only if the Grantee has received prior written approval of the Commission’s Deputy Executive Director or his/her designee permitting the expenses in excess of state rates on the basis that state rates were not reasonably available. Reimbursement for the cost of operating a private vehicle shall not, under any circumstance, exceed the current rate specified by the State of California for unrepresented state employees as of the date the cost is incurred. Receipts will be required for all travel related reimbursements. All travel costs are inclusive within the budgeted amount referenced in this Agreement. Grantees shall ensure that travel and related expenses, including Grantee’s consultant and subconsultant travel and related expenses, submitted to the Commission for reimbursement, do not exceed the State rates provided in Title 2, Division 1, Chapter 3, Subchapter 1, Article 2 of the California Code of Regulations, unless prior written approval permitting the expenses to be in excess of state rates was obtained, as noted above.
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EXHIBIT D2
4. WORK PRODUCT
The Grantee agrees to provide the Commission, and any of the Commission’s assignees or successors in interest, a license to use any data, plans, drawings, specifications, surveys, studies and other digital, written, or graphic work produced in the performance of this Agreement, herein referred to as “materials.” The Commission shall have the right to reproduce, publish, or use all such materials, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so. The Commission agrees to credit the Grantee when reproducing, publishing, sharing, or using such materials.
5. PERMITS
The Grantee shall obtain all permit(s) required by law for accomplishing any work required in connection with this contract. The Grantee shall provide proof of these permits to the Coastal Commission upon approval.
In the event any permit(s) expire at any time during the term of this contract, Grantee agrees to provide the Coastal Commission proof of the renewed permit(s) within 30 days following the expiration date. In the event the Grantee fails to keep in effect at all times all required permit(s), the State may, in addition to any other remedies it may have, terminate this contract upon occurrence of such event.
6. TERMINATION
Except as otherwise set forth in this Agreement, this Agreement may be terminated or suspended (a) by the Commission for any reason upon thirty (30) days prior written notice to the Grantee, (b) by Grantee for any reason upon thirty (30) days prior written notice to the Commission subject to the approval of the Commission in its sole discretion, and (c) immediately upon written notice by either party “for cause”. The term “for cause” shall mean that either the Grantee or the Commission fails to meet any material terms, conditions, and/or responsibilities of the Agreement.
In the event of a termination or suspension, the Grantee shall immediately stop work and take all reasonable measures to prevent further costs requiring reimbursement by the Commission. The Commission shall then only be responsible for any reasonable and non-terminable obligations incurred by the Grantee in the performance of this Agreement prior to the date of the notice to terminate or suspend, but not to exceed the balance of the total funds which remains unencumbered under this Agreement at the time of termination.
On or before the date of termination of this Agreement, whether terminated by the Grantee or the Commission, the Grantee shall provide the Commission with all work, material, data, information, and written, graphic or other work produced, developed or Packet Pg. 98
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EXHIBIT D2
acquired under this Agreement (whether completed or partial), in appropriate, readily useable form.
The Grantee expressly agrees to waive, release and relinquish the recovery of any consequential damages that may arise out of the termination or suspension of this Agreement.
The Grantee shall include in any agreement with any consultant retained for work under this Agreement a provision that entitles the Grantee to immediately suspend or terminate the agreement with the consultant for any reason on written notice.
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EXHIBIT E
CERTIFICATION (GCC-1/2019)
The Grantee’s signor CERTFIES UNDER PENALTY OF PERJURY that they are duly authorized to legally bind the Grantee to the clauses below. This certification is made under the laws of the State of California.
GRANTEE CERTIFICATION CLAUSES
1. STATEMENT OF COMPLIANCE: Grantee has, unless exempted, complied with the nondiscrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 11102) (Not applicable to public entities.)
2. DRUG-FREE WORKPLACE REQUIREMENTS: Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations. b. Establish a Drug-Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug-free workplace; 3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations. c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement; and, 2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.
Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Grantee may be ineligible for award of any future State agreements if the Coastal Commission determines that any of the following has occurred: (1) the Grantee has made false certification, or (2) violated the certification by failing to carry out the requirements as noted above. (Gov. Code §8350 et seq.)
3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Grantee certifies that no more than one (1) final unappealable finding of contempt of court by a Federal court has been issued against Grantee within the immediately preceding two-year period because of Grantee's failure to comply with an order of a Federal court which orders Grantee to comply with an order of the National Labor Relations Board. (PCC 10296) (Not applicable to public entities.)
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EXHIBIT E
4. EXPATRIATE CORPORATIONS: Grantee hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of Public Contract Code Section 10286 and 10286.1, and is eligible to contract with the State of California.
5. SWEATFREE CODE OF CONDUCT:
a. All Grantees contracting for the procurement or laundering of apparel, garments or corresponding accessories, or the procurement of equipment, materials, or supplies, other than procurement related to a public works contract, declare under penalty of perjury that no apparel, garments or corresponding accessories, equipment, materials, or supplies furnished to the state pursuant to the contract have been laundered or produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. The Grantee further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at www.dir.ca.gov, and Public Contract Code Section 6108.
b. The Grantee agrees to cooperate fully in providing reasonable access to Grantee records, documents, agents or employees, or premises if reasonably required by authorized officials of the Coastal Commission, the Department of Industrial Relations, or the Department of Justice to determine Grantee compliance with the requirements under paragraph (a).
6. DOMESTIC PARTNERS: For Grantee Agreements of $100,000 or more, Grantee certifies that the Grantee and/or its subcontractors/consultants are in compliance with Public Contract Code section 10295.3.
7. GENDER IDENTITY: For Grantee Agreements of $100,000 or more, Grantee certifies that Grantee is in compliance with Public Contract Code section 10295.35.
DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of California.
1. CONFLICT OF INTEREST: Grantee needs to be aware of the following provisions regarding current or former state employees. If Grantee has any questions on the Packet Pg. 101
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT E
status of any person rendering services or involved with the Agreement, the awarding agency must be contacted immediately for clarification.
Current State Employees (Pub. Contract Code §10410)
1) No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment.
2) No officer or employee shall contract on his or her own behalf as an independent Grantee with any state agency to provide goods or services.
Former State Employees (Pub. Contract Code §10411):
1) For the two-year period from the date they left state employment, no former state officer or employee may enter into a contract in which they engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the agreement while employed in any capacity by any state agency.
2) For the twelve-month period from the date they left state employment, no former state officer or employee may enter into a contract with any state agency if they were employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to leaving state service.
If Grantee violates any provisions of above paragraphs, such action by Grantee shall render this Agreement void. (PCC 10420)
Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (PCC 10430 (e))
2. LABOR CODE/WORKERS' COMPENSATION: Grantee needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code Section 3700)
3. AMERICANS WITH DISABILITIES ACT: Grantee assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)
Packet Pg. 102
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT E
4. GRANTEE NAME CHANGE: An amendment is required to change the Grantee's name as listed on this Agreement. Upon receipt of legal documentation of the name change the State will process the amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said amendment.
5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:
a. When agreements are to be performed in the state by corporations, the Coastal Commission will be verifying that the Grantee is currently qualified to do business in California in order to ensure that all obligations due to the state are fulfilled. b. "Doing business" is defined in R&TC Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. Although there are some statutory exceptions to taxation, rarely will a corporate Grantee performing within the state not be subject to the franchise tax. c. Both domestic and foreign corporations (those incorporated outside of California) must be in good standing in order to be qualified to do business in California. The Coastal Commission will determine whether a corporation is in good standing by calling the Office of the Secretary of State.
6. RESOLUTION: A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.
7. AIR OR WATER POLLUTION VIOLATION: Under the State laws, the Grantee shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.
8. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all Grantees that are not another state agency or other government entity.
Packet Pg. 103
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the City of Redding
PC-24-##
EXHIBIT F
INFORMAL AMENDMENT
Amendment to _____________
1. This amendment (the "Amendment") is made by the California Coastal Commission and _________________, parties to the agreement _________________ dated (the "Agreement").
2. As of _(date) , the Agreement is amended as follows:
________________________________________________
3. Except as set forth in this Amendment, the Agreement is unaffected and shall continue in full force and effect in accordance with its terms. If there is conflict between this amendment and the Agreement or any earlier amendment, the terms of this amendment will prevail.
Signed and Agreed:
Representative of ________________
By: __________________________
Printed Name: _________________
Title: ________________________
Dated: _________________
Representative of California Coastal Commission:
By: __________________________
Printed Name: _________________
Title: ________________________
Dated: _________________
Packet Pg. 104
Attachment: DRAFT CA Coastal Commission Grant Agreement LCP/WT/GF-WT/PC-23-## (4.6(a)--Accept Whale Tail Grant Award from the
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Adopt Resolution ratifying the application for, and authorizing the acceptance of funding from the California Highway Patrol’s Cannabis Tax Fund Grant Program , if awarded, in the amount of $288,974;
(2) Authorize the City Manager , or designee , to execute said contract and any associated amendments; and
(3) Authorize the City Manager to administratively appropriate the grant funds.
Fiscal Impact
This Cannabis Tax Fund Grant P rogram does not require matching funds. There is no negative fiscal impact in accepting this grant. If awarded, the grant funds will be used to pay for Redding Police Department (RPD) staff overtime related to driving under the influence (DUI) enforcement and associated equipment, educational materials and advertising.
Alternative Action
The City Council could choose not to adopt the resolution to ratify the grant application. RPD would lose the opportunity to focus additional efforts toward DUI enforcement.
Background/Analysis
On February 20 , 202 5, RPD submitted a grant application for the Cannabis Grant Operations through the California Highway Patrol in the amount of $288,974 . The grant period is from July 1, 2025 through June 30, 2026. The applic ation is requesting funding for overtime for DUI enforcement operations and for additional equipment.
MEETING DATE: March 18, 2025
ITEM NO. 4.9(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.9(a)--Resolution Ratifying and Authorizing a Grant from the California Highway Patrol's Cannabis Tax Fund Grant Program
Brian Barner, Chief of Police
Packet Pg. 105
Report to Redding City Council March 12, 2025
Re: 4.9(a)--Resolution re Grant from CHP Page 2
If awarded, the grant will assist RPD with targeted DUI enforcement to combat the issue and to keep the roads safe . The application is also requesting to purchase additional equipment including five laptops for use by the Traffic Unit and four multipurpose motorcycles. The motorcycles will enhance officer’s mobility during patrols. The application also includes a request for funding for educational materials and for advertising on social media and radio.
Environmental Review
Ratifying the grant application is not a project as defined by the California Environmental Quality Act, therefore, no further action is required at this time.
Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.”
Attachments
^Resolution
Packet Pg. 106
RESOLUTION NO. 2025-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE APPLICATION FOR CANNABIS TAX FUND GRANT
PROGRAM FUNDS
WHEREAS, the California Highway Patrol has been delegated the responsibility by the Legislature of the State of California for the administration of the Cannabis Tax Fund Grant Program, setting up necessary procedures governing the application; and
WHEREAS, said procedures established by the California Highway Patrol require the Applicant to certify by resolution the approval of the application to the State; and
WHEREAS, successful Applicants will enter into an agreement with the California Highway Patrol to complete the Grant Scope;
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby:
APPROVES THE FILING OF AN APPLICATION FOR THE CANNABIS TAX GRANT IN THE AMOUNT OF $288,974; AND
1. Certifies that said Applicant has or will have available, prior to commencement of any work on the project included in this application, the sufficient funds to complete the project if the grant is awarded;
2. Certifies that if the project is awarded, the Applicant has or will have sufficient funds to operate and maintain the project;
3. Certifies that the Applicant has reviewed, understands, and agrees to the General Provisions contained in the program regulations;
4. Delegates the authority to the City Manager, or his designee, to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Grant Scope; and
5. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines.
Packet Pg. 107
Attachment: ^Resolution (4.9(a)--Resolution re Grant from CHP)
I HEREBY CERTIFY that the foregoing resolution was introduced and adopted by the City Council of the City of Redding at a regular meeting held on the 18th day of March, 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 Packet Pg. 108
Attachment: ^Resolution (4.9(a)--Resolution re Grant from CHP)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following relative to Contract Purchase Agreement No. 225 Water Utility Warehouse Items and Fire Hydrants:
(1) Approve increased expense under the contract with Pace Supply Corporation for an annual evaluated price of $400,000;
(2) Authorize the Purchasing Officer to extend the bid award annually with Pace Supply Corporation through March 31, 2028, if mutually agreeable, with all terms and conditions remaining the same and price adjustments in direct proportion to a Producer Price Index; and
(3) Authorize the City Manager, or designee, to approve an additional $50,000 to the contract award as a contingency per fiscal year.
Fiscal Impact
The purchase of Water Utility Warehouse Items and Fire Hydrants was included in the City of Redding’s (City) Water Utility’s (Water Utility) Fiscal Year 2023 -25 Biennial Budget. If capital expenses related to these efforts are projected to exceed the approved budget, staff will return with additional recommendations related to budgetary adjustments and financing options.
Alternative Action
The City Council (Council) could choose not to amend Contract Purchase Agreement (CPA) No. 225 with Pace Supply Corporation (Pace Supply) and provide alternative direction to staff.
Background/Analysis
In March 2024, the City opened bids for Bid Schedule No. 5 454 - Water Utility Warehouse Items and Fire Hydrants. This was an annual bid to purchase inventory items for the Water Utility’s warehouse as-needed based on evaluated quantiti es and inventory. These parts are MEETING DATE: March 18, 2025
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(a)--Modification of CPA #225 - Water Utility Warehouse Items and Fire Hydrants
Michael Webb, Public Works
Director
Packet Pg. 109
Report to Redding City Council March 12, 2025
Re: 4.11(a)--CPA No. 225 - Water Utility Warehouse Items & Fire Hydrants Page 2
necessary to support the routine maintenance and repair of the Water Utility’s infrastructure, including but not limited to water main and service piping, repair couplings, valves, pipe fittings, and fire hydrants. These parts, appurtenances, and materials a re also required to support the Water Utility’s p lanned infrastructure replacement projects, contributing to increased system reliability.
Staff separated Bid Schedule No. 5 454 into four separate bid groups: (1) Bid Gr oup 1 – Couplings, (2) Bid Group 2 – Valves, (3) Bid Group 3 – Service Brass, and (4) Bid Group 4 – Fire Hydrants. This format allows for more competitive pricing for different groups of similar equipment.
This was the first time the City contracted thes e purchases and staff estimated that less than $200,000 worth of items would be purchased from the awarded supplier. After opening bids, CPA No. 225 with Pace Supply was awarded on April 3, 2024. Also included in the CPA was a 25 percent discount from Pace Supply on non-contracted items.
During the course of the past year, the Water Utility has purchased approximately $350,000 worth of materials from Pace Supply. The staff estimate was low based on limited availability of parts from other vendors. Staff co ntinued to purchase inventory materials from Pace Supply because the parts were readily available or could be acquired sooner than competing vendors .
The significant 25 percent discount on non-contracted items was another reason the Water Utility purchased more materials from Pace Supply than estimated.
Any contracted agreement exceeding $200,000 per annual term must receive Council approval.
Environmental Analysis
This activity, purchasing, is not a project as defined by the California Environmental Qu ality Act, and no further action is required.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
^Award Letter- Bid 5454 - CPA 225
Packet Pg. 110
Internal Communication
DATE April 2, 2024
TO: Michael Webb, Director of Public Works
FROM: Tyler Nash, Buyer
RECE~VF D
APR O 3 2024
PURCHASING.
SUBJECT: Bid 5454- Furnish Water Utility Warehouse Items and Fire Hydrants Four (4) bid opportunity announcements were distributed to potential vendors, in addition to posting the bid to the City of Redding website and advertising in the Record Searchlight. Three (3) bids were submitted. The apparent low bidder that can provide all products required was received from Pace Supply Corp, with an estimated annual cost of $149,668.30.
The bid submissions have been provided to Kely Miller; Public Works Supervisor-Water and Gabe Johnson; Warehouse Worker-Water for review and evaluation. They have reviewed the submissions and have recommended to award to Pace Supply Corp.
Please note that the term of the initial contract is from purchase order issuance date through March 31, 2025 ; however, if mutually agreeable, with all price changes in proportion with the Producer Price Index, terms and conditions remaining the same, the contract may be extended annually through March 31, 2028.
The acquisition of goods or services less than $200,000.00 do not require City Council approval.
If you are in agreement with awarding to Pace Supply Corp, please sign below.
If you have any questions, please call me at 225-4135.
IAA · - /. - - IJ /J / , )_ LL 04/02/2024 Approved_l'l'_~ ___ /_G._U/_,Q..,ct_C7 _____ _ Michael Webb , Director of Public Works Date
Attachments:
Bid Tab
Packet Pg. 111
Attachment: ^Award Letter- Bid 5454 - CPA 225 (4.11(a)--CPA No. 225 - Water Utility Warehouse Items & Fire Hydrants)
CITY OF REDDING
PURCHASING DIVISION-TABULATION OF BIDS
Bid 5454- Preliminary Results
Notice Inviting Bids - Furnish Water Utility Core & Main Pace Supply Ferguson Waterworks Warehouse Items and Fire Hydrants
BID SCHEDULE NO. DATE OF OPENING
March 28,2024
5454 TIME OF OPENING
3:00 P.M.
ITEM DESCRIPTION PRICE PRICE PRICE
$48,055.61 $38,050.16 $38,351.53
1 Bid Group 1 (Couplings)
Romac Romac Romac/ProSelect
$20,178.45 $18,393.38 $19,829.45
2 Bid Group 2 (Valves)
Clow Clow Mueller Co
$59,383.92 $59,049.55 $61,907.97
3 Bid Group 3 (Service Brass)
Ford Meter Box AY McDonald Romac/Mueller/Ford/Ay McDonald $37,390.67 $34,175.21 $37,478.51
4 Bid Group 4 (Fire Hydrants)
Clow Clow Mueller Co
5 Total of All Bid Groups (If applicable) $165,008.65 $149,668.30 $157,567.46 Addendums Acknowledged? Yes Yes Yes
All Groups Bid? Yes Yes Yes
Notated Deviations to Bid? No No Yes
Packet Pg. 112
Attachment: ^Award Letter- Bid 5454 - CPA 225 (4.11(a)--CPA No. 225 - Water Utility Warehouse Items &
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following relative to the City of Redding’s COVID -19 Economic Stimulus Package projects:
(1) Accept the Project Status Report; and
(2) Ratify approval of City Manager award for the Upgrade HVAC at City Hall (C19-M-03) to Jessee Heating and Air, Inc. in the amount of $480,763.
Fiscal Impact
The City Council (Council) previously approved an allocation of $9.5 million in Greenhouse Gas Cap and Trade auction proceeds for projects that reap an energy savings benefit to the City of Redding (City). To date , the City Manager has authorized purchases and projects totaling approximately $4.3 million and a consulting services agreement for engineering and construction management support of more than $1.2 million. There is no fiscal impact to the General Fund.
Alternative Action
The Council may choose not to accept the Project Status Report and provide further direction to staff.
Background/Analysis
On April 21, 2020, the Council unanimously approved the City’s Economic Response Plan.
Included in the plan, i s the allocation of $9 .5 million in Cap and Trade auction proceeds to be used for several projects associated with the Local Economic Stimulus Package that equates to a savings in energy costs for the City. On May 5, 2020, the Council authorized the City M anager to execute agreements, purchase orders, and contracts associated with the program to ensure an expedited delivery schedule. The Council also directed staff to provide regular status updates o f the program and ratify all City Manager awards.
MEETING DATE: March 18, 2025
ITEM NO. 4.11(b)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(b)--COVID-19 Economic Stimulus Package Projects Michael Webb, Public Works
Director
Packet Pg. 113
Report to Redding City Council March 10, 2025
Re: 4.11(b)--COVID-19 Economic Stimulus Package Projects Update Page 2
As directed by the City Manager, staff has endeavored to break up most of the work into smaller contracts, with values lower than $500,000, with the idea that local contractors and vendors will compete better due to lack of mobilization costs and other local adv antages. However, the City has limited control because these are Public Works contracts and must be awarded to the lowest responsible and responsive bidder in accordance with State of California law.
To date, staff has awarded 18 projects totaling roughly $4.3 million that include:
• Projects for lighting improvements at sport fields, the Library, Corporation Yard, City Hall, Police Department, Civic Auditorium, fire stations, and various other City buildings;
• Projects to install solar power generation systems, including roof replacements, at various fire stations;
• A project for pumping efficiency improvements at the Redding Aquatic Center; • The recently awarded project for upgrade of the heating, ventilation, and air conditioning (HVAC) at City Hall, furth er project detail is provided in the attached Internal Communication; and
• Purchase orders and on -call contract services for lighting, plumbing, mechanical work, window replacements, and equipment.
There have been 15 projects completed, and 10 of the 1 8 projects have been awarded to local contractors. Only one project, for the HVAC upgrades at the Corporation Yard, has yet to enter the construction phase and staff plan s to advertise it for construction bids this spring. Due to extensive delays with the c onstruction of the lighting project at the Civic Auditorium , staff is working to cancel this contract, as City Building Maintenance staff has already replaced a majority of the existing lamps with new LED lamps and will continue to replace the few remaining lamps over time as the y fail. The attached Project Status Report provides more detailed information on project status and costs. Staff will continue to return to the Council quarterly to provide progress updates, with the next update anticipated to be June 17, 2025.
Environmental Review
Accepting the Project Status Report is not a project as defined by the California Environmental Quality Act (CEQA), and no further action is required. T he individual projects within this report may be subject to CEQA and are individually analyzed.
Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10 -year Financial Plans for all funds.”
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make bett er decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Packet Pg. 114
Report to Redding City Council March 10, 2025
Re: 4.11(b)--COVID-19 Economic Stimulus Package Projects Update Page 3
Attachments
^Project Status Report
^Internal Communication- C19-M-03 Award
Previous Staff Report 04-21-20
Previous Staff Report 05-05-20
Packet Pg. 115
Project # Description Project Type Contract Method
Award/PO
Date
Ratification
Date Contractor
Local Contractor,
Sub, or Supplier? Cost Est Actual Cost
$ to Local
Contractors
Estimated
Completion
Date
Acceptance
Date Project Status
PROJECTS IN CONSTRUCTION
C19-L-06 LED Lighting Retrofit at Civic Auditorium Lighting Standard Bid 11/23/2021 12/21/2021 Fluoresco Services, LLC No 162,111$ 77,387$ -$ - Canceling contract due to delays. Building Maintenance staff will replace lights with LEDs as needed.
C19-P-03 Aquatic Center Pumping System Upgrade Plumbing Standard Bid 11/30/2023 12/19/2023 Tricon Construction, Inc No 250,356$ 246,323$ -$ 2/1/2026 Contractor's failure to order equipment and long equipment lead times will delay construction start to October 2025.
C19-M-03 Upgrade HVAC at City Hall HVAC Standard Bid 405,000$ 480,763$ -$ 8/1/2025 Contractor ordering materials.
PROJECTS IN DESIGN
C19-M-04 Upgrade HVAC at Caldwell Park Rec Center HVAC Standard Bid - TBD Design on hold until future of rec center and ownership is resolved.
C19-M-05 Upgrade HVAC at Corp Yard HVAC Standard Bid 195,000$ 7/1/2025 Jacobs finalizing bid package.
C19-S-03 Solar PV & Replace Roofs - Fire Stations 1 and 3 Solar Standard Bid 250,000$ TBD Design on hold until future plan for these fire stations is determined.
C19-W-04b Replace Windows at Fire Stations 1, 2, 3, 4, and 6 Windows Standard Bid 153,000$ TBD Design on hold until future plan for the fire stations is determined.
C19-M-06 Replace HVAC at Civic Auditorium HVAC Standard Bid 3,500,000$ TBD Design on hold until City determines if budget will be available.
C19-S-04 Install Solar and Replace Roof at Civic Auditorium Solar Standard Bid 1,600,000$ TBD Design on hold until City determines if budget will be available.
PROJECTS COMPLETE
C19-L-01 LED Lighting Retrofit at three Non Profit Buildings at Diestelhorst Landing. Lighting On-Call Contract 6/9/2020 7/21/2020 B&C Yes 48,000$ 13,000$ 13,000$ 7/9/2020 7/31/2020 Construction completed.
C19-L-02 LED Lighting Retrofit at Library Lighting Standard Bid 11/19/2020 12/15/2020 Clear Blue Energy Corp. No 194,263$ 53,633$ -$ 3/1/2021 2/22/2021 Construction completed.
C19-L-03 LED Lighting Retrofit at Corp Yard Lighting Standard Bid 12/15/2020 1/19/2021 Fluoresco Services, LLC No 391,117$ 137,294$ -$ 6/22/2021 8/6/2021 Construction completed.
C19-L-04 LED Lighting Retrofit at City Hall and Police Station Lighting Standard Bid 8/2/2021 8/17/2021 Fluoresco Services, LLC No 519,000$ 189,367$ -$ 10/1/2022 9/20/2022 Construction completed.
C19-L-05
LED Lighting Retrofit at Various Locations (Aquatic Center, Caldwell Park, Fire Stations, MLK Jr Center, Enterprise Park, Old City Hall, Senior Citizens Hall, and California Soccer Park)
Lighting Standard Bid 6/2/2022 6/21/2022 Advanced Lighting Services, Inc. No 386,077$ 145,255$ -$ 1/31/2023 2/1/2023 Construction completed.
C19-PO-01 Sourcewell purchase order for stadium lighting (Equipment Only) at Alta Mesa Park, Softball Park, South City Park, Buckeye Park, and Caldwell Park Stadium Lighting Purchase Order (Equipment Only) 7/16/2020 7/21/2020 Musco No 1,227,941$ 1,227,941$ -$ 12/31/2022 2/8/2023 Purchase order with Musco for equipment. Projects complete.
C19-LS-01 Installation of City purchased stadium lighting equipment at Alta Mesa Park, Softball park, South City Park Kiwanis 1, and Tiger Field Stadium Lighting Standard Bid (Installation Only) 3/31/2021 4/20/2021 Builders Solutions, Inc. Yes 465,014$ 750,691$ 750,691$ 12/31/2022 2/8/2023 Construction completed.
C19-LS-02 Installation of City purchased stadium lighting equipment at Buckeye Park and Caldwell Park Stadium Lighting Standard Bid
(Installation Only) 2/17/2021 3/16/2021 Builders Solutions, Inc. Yes 341,500$ 319,647$ 319,647$ 4/25/2022 5/10/2022 Construction completed.
C19-P-01 Replace Water Heaters in Fire Stations 2, 3, 4, and 6 Plumbing On-Call Contract 6/30/2020 7/21/2020 American Leak Detection Yes 49,000$ 13,050$ 13,050$ 9/16/2020 10/2/2020 Construction completed.
C19-P-02 Replace Laundry Facilities in Fire Stations 2, 3, 5, 7, and 8 Plumbing On-Call Contract 6/25/2020 7/21/2020 American Leak Detection Yes 17,000$ 12,759$ 12,759$ 9/16/2020 10/2/2020 Construction completed.
C19-M-01 Replace HVAC Units in Fire Stations 1,2,4,6 HVAC On-Call Contract 6/9/2020 7/21/2020 ACCO Yes 92,109$ 95,278$ 95,278$ 12/1/2020 11/30/2020 Construction completed.
C19-M-02 Replace HVAC Units in Old City Hall HVAC On-Call Contract 6/15/2020 7/21/2020 ACCO Yes 135,755$ 97,985$ 97,985$ 1/20/2021 1/13/2021 Construction completed.
C19-S-01 Solar PV at Fire Stations 7 & 8 Solar Standard Bid 9/29/2021 10/19/2021 B & B Solar Inc. Yes 100,529$ 98,900$ 98,900$ 8/1/2023 9/22/2023 Construction completed.
C19-S-02 Solar PV & Replace Roofs at Various Fire Stations (Stations 2, 4, 5, and 6) Solar Standard Bid 11/23/2021 12/21/2021 Harbert Roofing, Inc. Yes 525,610$ 372,068$ 372,068$ 9/8/2023 12/18/2023 Construction Completed.
C19-W-04a Replace Windows at Fire Station 5 Windows On-Call Contract 3/1/2023 12/19/2023 Harbert Roofing, Inc. Yes 16,000$ 15,526$ 15,526$ 12/31/2023 12/22/2023 Construction Completed.
Sub Total: 11,024,382$ 4,346,866$ 1,788,904$
PROJECT MANAGEMENT/DESIGN/CONSTRUCTION MANAGEMENT SERVICES C-19-DC-01 Project Management, Design and Construction Services Engineering Consultant PSA 6/9/2020 7/21/2020 Jacobs Engineering Yes 1,240,816$ On-going design and construction management services Total 12,265,198$ 4,346,866$ 1,788,904$
Project Budget $9 M. Projects will be prioritized and delivered to fit within approved budget
Energy Efficiency Economic Response Plan (EEERP) Project Status Report Packet Pg. 116
Attachment: ^Project Status Report (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) Packet Pg. 117
Attachment: ^Internal Communication- C19-M-03 Award (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) Packet Pg. 118
Attachment: ^Internal Communication- C19-M-03 Award (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) Packet Pg. 119
Attachment: ^Internal Communication- C19-M-03 Award (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) Packet Pg. 120
Attachment: ^Internal Communication- C19-M-03 Award (4.11(b)--COVID-19 Economic Stimulus Package Projects Update)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept the City of Redding Economic Response Plan and provide direction to staff as follows:
(1) Approve deferral of Transient Occupancy Tax (TOT) hotels and motels. (2) Approve modification of existing Community Assistance for Redding Electric Services (CARES) guidelines.
(3) Approve modification of amortization policy for City of Redding utility bills. (4) Approve the refund of all City of Redding utility deposits. (5) Rescind approval of allocation of C ap and Trade funds for the Wildfire Mitigation and Building Electrification programs; approve Cap and Trade auction proceeds to be distributed to electric customers; and adopt Resolution approving and adopting the 32nd Amendment to City of Redding Budget Resolution No. 2019-050 to appropriate a total of $9 million in Greenhouse Gas allotment for utility rebates. (6) Approve adoption of a u tility grant program for small businesses utilizing $600,000 of Community Development Block Grant (CDBG) funding.
(7) Economic Stimulus Package
a. Approve additional use of $5 million of Greenhouse Gas allo tment and adopt Resolution approving and adopting the 33rd Amendment to City of Redding Budget Resolution No. 2019 -050 allocating money for projects designated as providing energy savings for the general fund.
b. Provide direction on projects involving utilities funding and borrowing.
Fiscal Impact
The amount of impact of this proposal depends on the City Council’s (Council) direction for staff. The programs implemented thus far are e xpected to impact the General Fund due to approximately $500,000 in missed revenue projections. Programs such as modifying the Amortization Program guidelines and deferring Transient Occupancy Tax will reduce reserves in the short term by providing cash fl ow relief to businesses. Using restricted revenue funds to modify existing CARES program guidelines, and also refunding City of Redding utility deposits MEETING DATE: April 21, 2020
ITEM NO. 9.1(b)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.1(b)--Consider Economic Response Plan related to the Covid -19 pandemic's impact on the City and provide direction regarding mitigation measures.
Barry Tippin, City Manager
Packet Pg. 121
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) Report to Redding City Council April 16, 2020
Re: 9.1(b)--Economic Response Plan Page 2
and creating a utility grant program for small business will not impact unrestricted reserves. If the a dditional utility credit is approved, $9 million in Cap and Trade auction proceeds would need to be allocated, some of which would be reallocated from previously funded projects, to bring the total allocation to $11 million for utility rebates. To complete projects listed in the Local Economic Stimulus Package, $5 million in Cap and Trade auction proceeds would need to be allocated in addition to the $4 million already allocated . The Council could also, through approval of this report, provide direction and identify an amount of money to reserve to pay for any potential borrowing for projects that would be approved through the Local Economic Stimulus Package.
Alternative Action
The Council has multiple options with this report. If it chooses to not accept the report in its entirety, all currently implemented programs would cease and no additional community assistance programming would take place at this time . The Council could choose to accept the report, and therefore all of the currently implemented proje cts as well, and provide direction to staff regarding which new projects to move forward.
Background/Analysis
The Covid -19 global pandemic has been a health catastrophe causing significant disruption in individual, community and societal norms while devastating the economy. The City of Redding, as the local governmental entity, needs to take bold action in line with the State and Federal Government to not only protect the health and welfare of the individual but also of the economy.
The City of Redding City Council will be presented with a number of proposed initiatives and projects to help individuals and businesses through this difficult time. The attached City of Redding Economic Response Plan is a report detailing programming currently implemented, as well as programming that could be implemented to assist the community. These items are varied in cost and source of funding.
Currently implementing
Maintain City services
Suspend Return to Owner fees for impounded animals
Suspend late fees and interest on payments due to the City of Redding Suspend City of Redding utility shut-offs due to non-payment Suspend City of Redding utility payment late fees
Cap and Trade distribution of $50 to every Redding Electric Utility ( REU) account holder
Pending approval
Deferral of Transient Occupancy Tax payment from hotel and motel businesses Modify existing –Community Assistance for Redding Electric Services ( CARES) program guidelines to provide opportunity for additional financial assistance to qualifying utility customers
Modify Utilities Amortization program guidelines to extend the amortization period, and extend the program to commercial customers
Refund City of Redding utility deposits to residential and commercial customers Additional Cap and Trade distribution of $200 to every REU account holder Utility grant program for small businesses
Local Economic Stimulus Package containing multiple projects that will result in local contract work opportunities and energy savings to the City of Redding Packet Pg. 122
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) Report to Redding City Council April 16, 2020
Re: 9.1(b)--Economic Response Plan Page 3
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.”
Government of the 21 st Century – “Be relevant and p roactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain curr ent businesses and attract new ones, and encourag e investment in the community.”
Attachments
Resolution - GHG Customer Distribution
Resolution - Green House Gas Allotment
COR Economic Response Plan 2020
Packet Pg. 123
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) Resolution No. 2020 - ____________
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 32ND AMENDMENT TO CITY BUDGET RESOLUTION NO. 20 19-050 RESCINDING
APPROVAL OF ALLOCATION OF CAP AND TRADE FUNDS FOR THE WILDFIRE MITIGATION AND BUILDING ELECT RIFICATION PROGRAMS; APPROVE THE APPROPRIATION OF $9,000,000 OF CAP AND TRADE AUCTION PROCEEDS TO BE DISTRIBUTED TO RATEPAYERS FOR FISCAL YEAR 2019-20.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2019-050 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
142 854 GHG Customer Distribution $9,000,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Decrease in Beginning Balance
142-851-01-0001-01 Beginning Balance 1,077,910$
Decrease in Cap and Trade Revenues
142-851-01-4400-01 Environmental Attributes 2,022,090$
Elimination of Building Electrification Project
142-854-8908-98 Building Electrification 4,000,000$
Elimination of Wildfire Mitigation Project
142-854-8908-99 Wildfire Mitigation 1,900,000$
Increase in GHG Customer Distribution
142-854-8908-90 GHG Customer Distribution 9,000,000$
Total 9,000,000$ 9,000,000$
THAT the purpose is to rescind approval of allocation of Cap and Trade funds for the Wildfire Mitigation and Building Electrification programs; approve the appropriation of $9,000,000 of Cap and Trade auction proceeds to be distributed to ratepayers for fiscal year 2019-20.
I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the C ity of Redding on the 21 st day of April, 2020 and was duly adopted at said meeting by the following vote:
Packet Pg. 124
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ADAM McELVAIN, Mayor
ATTEST: FORM APPROVAL:
PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
Packet Pg. 125
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) Resolution No. 2020 - ____________
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 33RD AMENDMENT TO CITY BUDGET RESOLUTION NO. 20 19-050 APPROVE AND APPROPRIATE ADDITIONAL USE OF $5,000,000 OF GREENHOUSE GAS
ALLOTMENT FOR PROJECTS DESIGNED AS PROVIDING ENERGY SAVINGS FOR THE GENERAL FUND FOR FISCAL YEAR 2019-20.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2019-050 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
142 854 Energy Efficiency Measures $5,000,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Decrease in Beginning Balance
142-851-01-0001-01 Beginning Balance 5,000,000$
Increase in Energy Efficiency Measures
142-854-8908-96 Energy Efficiency Measures 5,000,000$
Total 5,000,000$ 5,000,000$
THAT the purpose is to approve and appropriate additional use of $5,000,000 of Gree nhouse Gas allotment allocating money for projects designed as providing energy savings for the General Fund for fiscal year 2019-20.
I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Red ding on the 21 st day of April, 2020 and was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ADAM McELVAIN, Mayor
ATTEST: FORM APPROVAL:
PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney
Packet Pg. 126
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) Packet Pg. 127
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) City of Redding Economic Response Plan – April 2020
1 Table of Contents
Executive Summary ....................................................................................................................................... 2 Plan Elements ................................................................................................................................................ 2 Elements currently implemented ............................................................................................................. 2 Maintain City Services .......................................................................................................................... 2 Suspend Return to Owner fees ............................................................................................................ 3 Suspend Late Fees and Interest on City Payments ............................................................................. 3 Suspend Utility Shut-Off ...................................................................................................................... 4 Suspend Utility Late Fees ..................................................................................................................... 4 Distribution of $50 to REU Account Holders ....................................................................................... 4 Pending the City Council’s approval ......................................................................................................... 4 Deferral of Transient Occupancy Tax ................................................................................................... 5 Modify Existing CARES Program Guidelines ........................................................................................ 5 Modify Utilities Amortization Program Guidelines ............................................................................. 5 Refund City of Redding Utilities Deposits............................................................................................ 6 Additional Cap and Trade Distribution ................................................................................................ 6 Utility Grant Program for Small Businesses ........................................................................................ 6 Local Economic Stimulus Package ........................................................................................................ 7 Packet Pg. 128
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) City of Redding Economic Response Plan – April 2020
2 Executive Summary
The Covid -19 globa l pandemic is a health catastrophe causing significant disruption in individual, community and societal norms. While the direct human suffering owed to the disease itself is horrific , the damage to the economy due to necessary health precautions is equally devastating. The City of Redding (City), as the local governmental entity , needs to take bold action in line with the State and Federal Government to not only protect the health and welfare of the individual but also that of the local economy. The City of Redding City Council (Council) has directed that a plan be developed to assist the community in economic recovery to coincide with the cessation of the pandemic. This report provides detailed information on the various programs that have been developed to help foster the economy through this economic disaster.
Some programs have already been implemented while others still need final approval from the City Council. In brief, the programs are listed below.
Currently implement Plan Element Value
Suspend Return to Owner fees $200
Suspend late fees and interest on City of
Redding payments
$60,000
Suspend City of Redding utility shut-offs Increased Cash Flow Suspend City of Redding utility late fees $425,000
Distribution of $50 to REU account holders $2,200,000
Plan Element Pending approval
Deferral of Transient Occupancy Tax $250,000 Est. deferred Modify existing CARES program guidelines $1,500,000
Modify existing Utilities amortization
program guidelines
Increased Cash Flow
Refund City of Redding utility deposits $3,400,000
Additional Cap and Trade distribution $9,000,000
Utility grant program for small businesses $600,000
Local Economic Stimulus Package $20,000,000
Total Value of City Response Plan Est @ $37,500,000
Plan Elements
Elements currently implemented
Maintain City Services
City services provided to the community are critical in nature and are unable to cease in functionality. A multitude of projects, already in the works, have to continue processing in spite of the pandemic that has affected the natio n. In order to keep projects moving forward, and to Packet Pg. 129
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) City of Redding Economic Response Plan – April 2020
3 continue to serve the community in this critical capacity, City departments implemented immediate changes to comply with State and Federal directives. Personnel able to work from home were provided resources to do so. Meetings of large groups of staff and/or the public were eliminated, and preparations were made to provide access to public meetings without further endangering the community. As a result of the rapid response of staff, City services continue to function for the bulk of the community . In spite of the closure of City Hall and the dim inished personnel in the Avtech and Corp Yard buildings, and the Transfer Station, critical City services such as police, fire, electric, solid waste removal, water and wastewater maintenance, and parks services still operate to the benefit of the community. Each position, whether working from home or in the office, is a critical component of maintaining the support of these services. Department directors monitor work product and load to ensure the City continues to function efficiently. The City is providing increased availability of cleaning supplies and sanitizing materials to offices and meeting spaces to maintain worker health.
To provide additional relief to re sidents and business owners, several programming decisions were implemented. Taking into consideration the varied economic status of Redding residents and businesses, the following steps were taken to provide some help financially.
Suspend Return to Owner fees
Effective March 23, 2020, Haven Humane Society suspended the charging of return to owner fees for animals impounded for running at large. A small portion of the fee is typically returned to the City to recoup costs of providing animal regulation services for the community. The total cost is expected to be less than $200 for the City. This allows Haven to reduce the number of animals left in the shelter while it is being operated a t minimum capacity, and it is a benefit for community members who are unable to make the payment at this time.
Suspend Late Fees and Interest on City Payments
The City has initiated the suspension of late fees and penalties for payments and all General Accounts Receivable for items like hangar rents and imposed fines. This is made possible through individual review of accounts as payments are submitted and the reporting is analyzed. Both systems are housed in the legacy system so adjustments are applied manually to individual accounts. The $35 returned check and returned ACH payment fees have been suspended as well. Returned c heck and ACH fees are charged on an individual b asis, and returned items are reported from the City’s banking system daily. When applicable, the returned item amount with the additional fee are typically charged back to established accounts. The fee will be eliminated from these charge backs.
The current plan is to suspend penalties and interest for receivables due in March and Apri l 2020, which would include payments due in April and May. Based on last year’s activities , it is estimated that the loss of revenue to the general fund from the suspensions will be $ 55,000. The suspension of the returned check and ACH fees is estimated to be $5,000 for the same time period. If extended an additional month through the end of the fiscal year (June 30, 2020) , the savings to the community equates to an estimated $60,000 which will result in an equal amount of lost revenue for the City.
Packet Pg. 130
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) City of Redding Economic Response Plan – April 2020
4 Suspend Utility Shut-Off
Effective March 18, 2020, the City of Redding Utilities Customer Service suspended the practice of utility shut-offs due to non-payment. Each month, under normal circumstances, approximately 220 utility accounts are disconnected after failure to pay for utility service received over the previous 60 days. Typically, 75 percent of these customers pay their past due amount and have their utilities reconnected within two weeks. With the Covid -19 pandemic and the anticipated increase in the number of utility customers having difficulty keeping up with all of their monthly expenses, it was decided that loss of utility service should not contribute to the stress and anxiety already experienced. Once the pandemic has passed, the Customer Services division will work with customers using various tools to bring the accounts into good standing. It is known that this effort will result in a temporary increase in accounts receivable and decreased cash flow for all utilities – resulting in an equal amount of temporary financial relief to residents of the City of Redding. This measure may result in an increase in bad debt expense, however, additional proposed measures , listed later in this report, could assist in reducing bad debt expense .
Furthermore, bad debt would be sent to a collection agency with a recovery rate of approximately 30 percent.
Suspend Utility Late Fees
Like shut-offs, late fees for utility payments have been suspended. Late fees, historically, amount to $1.7 million per year. While late fee collections are not always linear , it is a close approximation that the suspension will save customers in excess of $425,000 due to the high potential that there will be an increase in late payments. Late fees are an administrative penalty, and therefore, are deposited in the General Fund. If it is assumed that there will be no attempt to collect the past-due late fees, the General Fund will miss revenue projections in this category by at least $425,000.
Distribution of $50 to REU Account Holders
The City Council approved the distribution of excess reserves to be credited to every Redding Electric Utility customer in December 2019 in the amount of $50 per account . The funding source for the distribution is the Greenhouse Gas Allowance Auction Proceeds (also referred to as GHG or Cap and Trade) , in an amount equal to about $2.2 million, and will be accomplished via a bill credit.
Pending the City Council’s approval
The following programming ideas were developed to provide additional options to provide financial relief to residents and businesses. These plan elements vary in how they target a diverse set of community members. Reaching as much of the community as possible is crucial for Redding to solidify its eco nomic foundation. These proposals require the City Council’s approval to proceed. Some of the following items can be implemented immediately, while others will need to be further developed and brought back to the Council for further direction.
Packet Pg. 131
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) City of Redding Economic Response Plan – April 2020
5 Deferral of Transient Occupancy Tax
Defer payment of TOT from hotel and motel business until August 1, 2020 (payment due August 19, 2020). This deferral would be interest free and full payback would be made by November 1, 2020. The TOT deferral program could provide for much need cash flow for the Hotel and Motel industry by allowing an estimated $250,000 to remain with the business for operating expense. This program would be limited to Hotels/Motels with Business Licenses of 65-40-1 or 65-50-1.
Modify Existing CARES Program Guidelines
Community Assistance for Redding Electric Services (CARES) provides up to $300 of emergency assistance for the electric portion of bills for City of Redding utility customers. The intent of the CARES program is to help customers who have suffered a temporary financial hardship and to bring their account to a current status. Customers are eligible for CARES assistance once every 12 months. This program is funded out of the Public Benefits char ges included in each ratepayers’ bill. Staff recommends applying a $300 CARES credit to all residential customers enrolled in the Residential Energy Discount Program (REU’s low income program). This would provide $1.2 million of immediate utility cost relief to our lowest -income customers with an additional $600,000 of additional relief available to those who may apply due to becoming eligible due to impacts from covid -19. These funds would be replenished with the new budget year beginning on July 1, 2020. Should the Council choose to do this, staff recommends providing the Electric Utility Director authority to repeat this process , should the Stay at Home order continue through the summer , and also suspend the once-per-year limitation for applicants. This would have no impact on the Electric Utility’s financial metrics as defined in Council Policy 1414, as Public Benefit Programs are restricted.
Modify Utilities Amortization Program Guidelines
The City of Redding Utilities Customer Service provides amortization for residential customer bills that are past due. This allows customers to “catch -up” on their bill for up to 12 months by amortizing the past -due balance. Staff recommends temporarily expanding this to commercial customers and temporarily ext ending the amortization for a period of up to 24 months, which would essentially provide a zero percent loan to customers that are past -due and having trouble paying their bill. In addition, this would allow commercial customers who receive Small Business Administration Loans to focus on other essential costs. This would have a temporary impact on City of Redding Utilities, as cash would not be received for up to two years. The risk to the utilities would be any eventual non -performance of these loans ; non-performance would mean not paying the full amortization over the 24 -month period. Therefore, staff recommends establishing an “eligibility criteria” that the customer must have not been disconnected for non - payment of utilities in the previous year to be a utomatically approved for the amortization .
Customers not eligible for automatic amortization may still request it and approval will be granted on a case by case basis. Should the Council choose to do this, Staff recommends providing the Electric Utility Director administrative authority to modify program elements as necessary. As this could affect water, wastewater, and solid waste utilities, the Public Works Packet Pg. 132
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) City of Redding Economic Response Plan – April 2020
6 Director would collaborate in these decisions. This plan element will potentially provide millions of dollars in available cash flow for residents and businesses.
Refund City of Redding Utilities Deposits
Staff recommends returning all customer deposits held by Utilities Customer Service s. This would return approximately $3.4 million to customers , including approximately $600,000 to commercial customers. The City holds utility deposits on customer accounts that present a higher credit risk to the utilities . By returning deposits, the City is returning monies to customers most in need. This would have no immediate impact on the Electric Utility’s financial metrics as defined in Council Policy 1414 as customer deposits are not included in unrestricted reserves for the purpose of calculating days of cash on hand. The risk to the utilities would be future bad debt accruals of non-payment of utilities by customers who have demonstrated difficulty paying bills.
However, this bad debt would be sent to a collection agency with a recovery rate of approximately 30 percent. Should the Council choose to do this, Staff recommends providing the Electric Utility Director authority to modify administrative processes for billing future utility deposits as defined in City Council Policy 1404. The deposit requirement will be reinstated at an unknown time in the future.
Additional Cap and Trade Distribution
Staff recommends a $200 credit on Electric utility bills to all customers out of Cap and Trade auction proceeds, which is similar to the $50 refund recently approved by Council . This would provide an additional $9 million in rebates to electric utility customers, bringing the total rebate amount, including the Council’s action on March 26, 2020, to approximately $11 million. To fund this program, the Council would need to allocate the balance of current year Cap an d Trade revenues and cancel two Council-approved programs that have yet to launch: Wildfire Mitigation and Building Electrification. Wildfire Mitigation has yet to start due to the California Air Resources Board not providing a quantification methodology f or reduced greenhouse gasses achieved through fuels reduction, thus the Cap and Trade funds are not available for this purpose. Building Electrification has yet to start due to staffing limitations. This would have no impact on the Electric Utility’s financial metrics as defined in Council Policy 1414 as Cap and Trade revenues are restricted.
Utility Grant Program for Small Businesses
As an entitlement city for the U.S. Department of Housing and Urban Development (HUD) the City receives an annual all ocation of Community Development Block Grant funding which is used for public service and public improvements. Due to the Federal CARES act the City received an additional allocation of $ 447,450. This funding, combined with unused funding from past projec ts, for a total of $600,000 provides the City an opportunity to provide funding toward eligible small business utility payments for those in the most need or are unable to receive Federal assistance or grants. If approved, staff will present the program and the amount available as part of the required public hearing to approve the use of the funding.
Packet Pg. 133
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) City of Redding Economic Response Plan – April 2020
7 Local Economic Stimulus Package
The Local Economic Stimulus Package is composed of multi -departmental projects intended to result in a combination of benefits to the City. In its infancy, this was a mass project designed to create an energy savings with each completed project . The City, however, has multiple deferred maintenance projects that must be completed to maintain the infrastructure stability of its assets.
Staff developed the following plan in a response to a need to merge the energy savings needs of the City with its deferred maintenance needs and infuse much needed capital into the local economy.
The projects in this package were specificall y chosen as critical needs either in the realm of energy savings, which qualifies the project to be paid for through GHG auction proceeds, or for its contribution to eliminating the deferred maintenance needs of the City. A combination of GHG funding, utility reserves, municipal bond, and energy cost savings would be used to fund the package with little or no net budgetary impact to the General Fund. The total value of the economic stimulus package is estimated at approximately $20 million. Approximately $ 9.5 million of GHG money could be allocated for the completion of the projects that realize an energy savings for the City. The energy savings over time for the General Fund could be used to fund the deferred maintenance needs.
Several of the anticipated projects such as the work at various fire stations and lighting upgrades would be started immediately and put out to bid as soon as possible. Other projects, such as the replacement of the heating and air conditioning system at the Civic Auditorium will need to be analyzed further. The intent is to move quickly to infuse available GHG funds and provide economic benefit for the community.
The calculated energy savings from the energy savings projects could be used to secure bond funding to accelerate up to another $10 million in local projects includ ing improvements to the Redding Aquatic Center, park facilities, required building maintenance , and other amenities.
Staff will return to the City Council with a full project list and borrowing options should the City Council provide direction to do so.
Completion of projects totaling up to $20 million is quite a large endeavor. However , the plan would be to bid multiple smaller projects to provide the best opportunity for local contractors to participate in the process, and thereby providing the local economy a direct opportunity to see quick and significant economic benefit in jobs and business activity. According to multipliers provided by the Shasta County Economic Development Corporation, the City of Redding would see a direct benefit equal to 328 jobs and $30 million of economic impact.
Packet Pg. 134
Attachment: Previous Staff Report 04-21-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the City Manager to award any public works contract, purchaseorder, or agreements, of any value, associated with the $ 9.5 million GHG funding approved as part of the Local Economic Stimulus Package.
Fiscal Impact
The City Council has previously approved the allocation of $ 9.5 million in Cap and Trade auction proceeds to be used for projects that reap an energy savings benefit to the City of Redding. There is no further fiscal impact to granting authority to the City Manager to execute the agreements, purchase orders, and contracts associated with these projects. There may, however, be an addedbenefit of seeingthe money infused more rapidly into the local economy.
Alternative Action
The City Council could choose to not authorize the City Manager to execute the agreements, purchase orders, or contracts associated with the Cap and Trade distribution funds to expedite delivery of the work. This would lengthen the processto usethe authorized funding.
Background/ Analysis
On Tuesday, April 21, 2020, the City Council unanimously approved the Economic Response Plan. Included in the plan is the allocation of $ 9.5 million in Cap and Trade auction proceeds to be used for projects associated with the Local Economic Stimulus Package that equate to a savings in energy costs for the City of Redding. By authorizing the City Manager to negotiate, execute, and direct the agreements, purchaseorders and contracts, staff can proceed with rapidly assigning the work and awarding bids. The benefit to this is being able to see the Cap and Trade action proceedsgo to work assoon aspossible in the community, and thereby providing the local MEETING DATE: May 5, 2020
ITEM NO. 9.1(b)
FROM:
APPROVED BY***
btippin@cityofredding. org
btippin@cityofredding. org
SUBJECT: 9.1(b)-- Consider authorizing the City Manager to award energy savings contracts, purchase orders, and agreementsrelated to the Green House Gas (GHG) funding approved by the City Council as part of the Local Economic Stimulus.
Barry Tippin, City Manager
Packet Pg. 135
Attachment: Previous Staff Report 05-05-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update) Report to Redding City Council April 28, 2020
Re: 9.1(b)--Authorize City Manager to award energy savings contracts Page 2 economy a direct opportunity to see a quick positive impact to jobs and businessactivity. The projects within the packagemay include, , LED light replacementin City facilities, reroofing and some solar installation at Fire Stations, replacing largely older and heavy energy using equipment with newer more efficient equipment, and additional energy saving projects to be determined
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 aspectsof public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Communication and Transparency – “ Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Government of the 21stCentury – “ Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Economic Development – “ Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businessesand attract new ones, and encourage investment in the community.”
Packet Pg. 136
Attachment: Previous Staff Report 05-05-20 (4.11(b)--COVID-19 Economic Stimulus Package Projects Update)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following relative to the South Street Water Main at Railroad Emergency Replacement Project (Project):
(1) Accept update regarding the project;
(2) Approve an increase to the budget for construction in the amount of $ 340,000, bringing the total project budget to $1,380,000; and
(3) 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
The South Street Water Main at Railroad Emergency Replacement Project (Project) will be funded by the City of Redding’s Water Utility. Project costs approved by the City Council (Council) to date, estimated cost increases, and total e stimated costs for the project are summarized in the following table:
COST SUMMARY
Item Approved
Amount
Estimated
Increase
Estimated
Cost
Project Development Costs $95,000 $0 $95,000
Construction Contract w/ Contingency $810,000 $340,000 $1,150,000 Contract Administration, Inspection, Testing $135,000 $0 $135,000 Total Costs $1,040,000 $340,000 $1,380,000
The Water Utility Division’s Fiscal Year 2024-2025 Budget has sufficient funds appropriated to complete the project, including the requested budget increase.
MEETING DATE: March 18, 2025
ITEM NO. 4.11(c)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(c)--Update and Budget Increase Regarding the Emergency Work for the South Street Water Main at Railroad Emergency Replacement Project.
Michael Webb, Public Works
Director
Packet Pg. 137
Report to Redding City Council March 12, 2025
Re: 4.11(c)--Update and Budget Increase for Emergency Repair to South Street Water Main ER Project Page 2
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. The project proposes to replace and relocate the failed section of 12 -inch, cast-iron water main and corrugated steel pipe casing in South Street that is beneath the U nion Pacific Railroad (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.
Staff has completed the design for the repairs , applied for the necessary UPRR encroachment permit, and is in discussions with UPRR concerning the encroachment permit and requirements for work within UPRR’s right-of-way.
Staff solicited RTA Construction, Inc. (RTA) for the construction of the project based on their technical knowledge of utility construction and previous performance on projects of similar size and scope. Staff has coordinated and negotiated for estimated construction costs and is currently finalizing a construction contract with RTA. Estimated construction costs have increased from the time the emergency resolution was adopted due to recent utility potholing data that determined the existing utility duct banks along the UPRR tracks will require the new steel casing to be longer and deeper than originally anticipated to avoid conflicts.
Staff anticipates construction starting in early April 2025, depending on execution of a construction contract, material availability , and obtaining necessary inter agency pe rmits.
Updates will be provided to Council as the project progresses.
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 dete rmined that the 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 f eel secure and safe where they live, work, and play in the City of Redding”
Attachments
Previous Staff Report
Packet Pg. 138
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to the South Street Water Main at Railroad E mergency Replacement Project (Project):
(1) Adopt Resolution, by not less than four -fifths affirmative vote, authorizing the C ity 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 St reet 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]
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. 139
Attachment: Previous Staff Report (4.11(c)--Update and Budget Increase for 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 t he 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 s teel 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 coordinat ed 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 cas ing 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 feas ible. To adequately repair this main, s taff 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 t here should not be issue s with the South Street water main remaining out of service through the winter and early spring, when water demands ar e 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 w ill 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, flow s through the Shasta Street main would increase to veloci ties 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. 140
Attachment: Previous Staff Report (4.11(c)--Update and Budget Increase for 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, s taff 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 neces sity demand the immediate expenditure of public money to safeguard life, health and property. Further, the P CC (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 s ervice 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. 141
Attachment: Previous Staff Report (4.11(c)--Update and Budget Increase for 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. 142
Attachment: Previous Staff Report (4.11(c)--Update and Budget Increase for 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 EMERGEN CY
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 procur e 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 los ses, 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. 143
Attachment: Previous Staff Report (4.11(c)--Update and Budget Increase for 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 heal th, 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 CE RTIFY 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, 202 5, 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. 144
Attachment: Previous Staff Report (4.11(c)--Update and Budget Increase for Emergency Repair to South Street Water Main ER Project)
APPROVED
Packet Pg. 145
Attachment: Previous Staff Report (4.11(c)--Update and Budget Increase for Emergency Repair to South Street Water Main ER Project)
APPROVED
Packet Pg. 146
Attachment: Previous Staff Report (4.11(c)--Update and Budget Increase for Emergency Repair to South Street Water Main ER Project)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve an increase to the Churn Creek Lift Station Rehabilitation Project’s (Bid Negotiation No. 5452) construction contingency budget in the amount of $65,000, bringing the construction contingency total to $262,000 for the project.
Fiscal Impact
The Churn Creek Lift Station Rehabilitation Project (Project) is being funded by Public Works’ Wastewater Utility Division funds, as will the proposed $ 65,000 contingency increase. The total project cost, including the proposed increase, is expected to be $929,600.
Alternative Action
The City Council (Council) may choose not to approve the request and provide alternative direction to staff.
Background/Analysis
This project includes the rehabilitation of the Churn Creek lift station to a ddress the issues and deficiencies listed below, including coating/lining the wet well interior with epoxy, replacing the influent slide gates, rehabilitating and securing the pump guide rail systems, installing combination air valves on the two force main s, installing drain outlets and piping from the vaults, and replacing the force main discharge structure with a new polymer concrete corrosion resistant structure.
The station is in decent condition overall and it is expected to have adequate capacity for the foreseeable future, but there are several issues and deficiencies at that station that are being addressed to extend the service life of the station and meet operation and maintenance needs, including:
MEETING DATE: March 18, 2025
ITEM NO. 4.11(d)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project
Michael Webb, Public Works
Director
Packet Pg. 147
Report to Redding City Council March 12, 2025
Re: 4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project Page 2
• The existing wet well liner is failing and exposing concrete to corrosive gasses; • Two influent slide gates have exceeded their service lives and are difficult to operate; • Pump guide rails separate and make pump removal and installation difficult; • Air valves on the force mains have failed, exposing the station to potential surge damage; • Service vaults at the station do not have drains and regularly fill with rain water; and • The station’s force main discharge structure is severely corroded.
On April 2, 2024, the Council awarded the construction contract f or the project to SnL Construction, Inc. The notice to proceed was issued May 10, 2024, and due to material delays, the project was suspended and construction did not begin until September 9, 2024. During the course of construction, it was found that the e xisting 12-inch sewer main entering the wet well had a major failure that necessitated immediate replacement of the pipe. On November 6, 2024, Public Works engineering staff initiated a transfer of project funding from City Manager available funds to construction contingency funding in the amount of $50,000. On November 19, 2024, Council approved an increase to the project contingency funds in the amount of $90,000 to cover the additional costs of the 12-inch sewer replacement.
During the last stages of the project, it was also found that the existing 20-inch sewer force main that crosses Goodwater Avenue and discharges into a newly installed sewer manhole , as per plan, was severely corroded to the point of failure for about 40 linear feet. Due to the magnitude of this failure, it is necessary to replace this failed section of pipe as it is the main discharge of the newly upgraded lift station. Due to this unforeseen condition, the project requires an increase of funding as the contingency funds previously approved for the projects budget are not adequate to cover the additional required wo rk. A $65,000 increase to the construction contingency is required to cover the costs of this additional work. The below table summarizes the total project budget to date including the requested increase to contingency.
COST SUMMARY
Item Authorized Amount1 Increase Requested
ed Amount
Projected Amount
Project Development $25,000 $0 $25,000
Construction Contract $562,600 $0 $562,600
Contract Administration,
Inspection, Testing
$80,000 $0 $80,000
Construction Contingency $197,000 $65,000 $262,000
City Manager Funds $0 $0 $0
Totals $864,600 $65,000 $929,600
Notes:
1Includes previous budget transfers (City Manager Funds) and Council approved budget increases.
Packet Pg. 148
Report to Redding City Council March 12, 2025
Re: 4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project Page 3
Environmental Review
This action is not a project as defined by the California Environmental Quality Act (CEQA), and no further action is required. On April 2, 2024, the Council determined that the project is categorically exempt from environmental review under CEQA, pursuant to Sections 15301 – Existing Facilities, 15302 – Replacement or Reconstruction, and 15303 - New Construction or Conversion of Small Structures.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
^Location Map
Previous Staff Report 111924
Transfer of Project Funds 110624
Previous Staff Report 040224
Packet Pg. 149
Packet Pg. 150
Attachment: ^Location Map (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve an increase to the project construction contingency budget in the amount of $90,000, bringing the construction contingency total to $233,070, for the completion of Bid Negotiation No. 5452, Churn Creek Lift Station Rehabilitation Project.
Fiscal Impact
The Churn Creek Lift Station Rehabilitation Project (P roject) is being funded by Public Works’ Wastewater Utility Division funds, as will the proposed $90,000 contingency increase. The total project cost, including the proposed increase, is expected to be just over $864,600.
Alternative Action
The City Council (Council) may choose not to approve the request and provide alternative direction to staff.
Background/Analysis
This project include s the rehabilitation of the Churn Creek lift station to address the issues and deficiencies listed below, including coating/lining the wet well interior with epoxy, replacing the influent slide gates, rehabilitating and securing the pump guide rail systems, installing combination air va lves on the two force mains, installing drain outlets and piping from the vaults, and replacing the force main discharge structure with a new polymer concrete corrosion resistant structure.
The station is in decent condition overall and it is expected to have adequate capacity for the foreseeable future, but there are several issues and deficiencies at that station that are being addressed to extend the service life of the station and meet operation and maintenance needs, including:
MEETING DATE: November 19, 2024
ITEM NO. 4.11(c)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(c)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project
Michael Webb, Public Works
Director
APPROVED
Packet Pg. 151
Attachment: Previous Staff Report 111924 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project) Report to Redding City Council November 8, 2024
Re: 4.11(c)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project Page 2
• The existing wet well liner is failing and exposing concrete to corrosive gasses; • Two influent slide gates have exceeded their service lives and are difficult to operate; • Pump guide rails separate and make pump removal and installation difficult; • Air valves on the force mains have failed, exposing the station to potential surge damage; • Service vaults at the station do not have drains and regularly fill with rain water; and • The station’s force main discharge structure is severely corroded.
On April 2, 2024, the Council awarded t he construction contract for the project to SnL Construction, Inc. The notice to proceed was issued May 10, 2024 , and due to material delays, the project was suspended and construction did not begin until September 9, 2024. During the course of constructio n, it was found that the existing 12 -inch sewer main entering the wet well has a major failure to the sewer main causing a significant amount of Inflow & Infiltration (I&I) to the Wastewater Utility’s system requiring the existing 12-inch sewer main to be replaced. Due to the magnitude of this failure, the project requires additional funding as the contingency funds originally awarded for the project is not adequate to cover the additional required work.
On November 6, 2024, staff transferred City Manager approved funds to the project contingency funds in the amount of $50,000 and a n additional $ 90,000 increase to the construction contingency is requested to cover the costs of the additional required work.
COST SUMMARY
Item Awarded Amount Transfer Amount
ed Amount
Increase Projected Amount
Contract Administration,
Inspection, Testing
$80,000 $0 $0 $80,000
Construction Contingency $57,000 $50,000 $90,000 $197,000 Additional City Manager
Funds
$50,000 (-$50,000) $0 $0
Totals $187,000 $0 $90,000 $277,000
Environmental Review
This action is not a project as defined by the California Environmental Quality Act (CEQA), and no further action is required. On April 2, 2024, the Council determined that the project is categorically exempt from environment al review under CEQA, pursuant to Sections 15301 – Existing Facilities, 15302 – Replacement or Reconstruction, and 15303 - New Construction or Conversion of Small Structures.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
^Location Map
Previous Staff Report
APPROVED
Packet Pg. 152
Attachment: Previous Staff Report 111924 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project)
APPROVED
Packet Pg. 153
Attachment: Previous Staff Report 111924 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Bid Schedule No. 5452 (Job No. 2663), City of Redding Churn Creek Lift Station Rehabilitation Project:
(1) Award to SnL Group, Inc., in the amount of $562,600; (2) Approve an additional $80,000 to cover the cost of administration and inspection fees; (3) Approve $25,000 for project development costs;
(4) Approve $57,000 to provide construction contingency funding; (5) Authorize the City Manager to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000; and (6) Find that the Project is categorically exempt from review under the California Environmental Quality Act , pursuant to Section 15301 - Existing Facili ties, 15302 - Replacement or Reconstruction, and 15303 - New Construction or Conversion of Small Structures.
Fiscal Impact
The Churn Creek Lift Station Rehabilitation Project (Project) is being funded by the Wastewater Utility. The Wastewater Utility has sufficient budget for this project and its funding will not impact other activities or projects.
Cost Summary
Item Estimated
Project Development Costs $25,000
Construction Contract + Contingency $619,600
Contract Administration, Inspection, Testing $80,000
Additional City Manager Authority $50,000
Total Project Costs $774,600
MEETING DATE: April 2, 2024
ITEM NO. 4.11(d)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(d)--Award Bid Negotiation No. 5452 (Job Order No. 2663) Churn Creek Lift Station Rehabilitation Project
Michael Webb, Public Works
Director
APPROVED
Packet Pg. 154
Attachment: Previous Staff Report 111924 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project) Report to Redding City Council March 26, 2024
Re: 4.11(d)--Award BN No. 5452 Churn Creek Lift Station Rehabilitation 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
City Council may choose not to award the bid for t he project and provide staff with alternate direction. If the project is not awarded, then the service life of the City of Redding ’s (City) Churn Creek Lift Station could be reduced, decreasing reliability for City customers and increasing potential risk of sanitary sewer overflows into Churn Creek.
Background/Analysis
The City currently owns and operates 18 lift stations within its wastewater collection system, including the Churn Creek Lift Station (Station). The station is located on the southwest side of Shasta View Drive and the Highway 44 overpass, between Highway 44 and Churn Creek Road, as shown in the attached location map . The station has capacity for 14.4 million gallons per day (MGD) and includes five submersible pumps located in a concrete wet well, dual force mains (20” and 16” diameter), vaults for force main maintenance and valves, a n emergency standby generator, and a control building.
The station is in decent condition overall and it is expected to have adequate capacity for the foreseeable future , but there are several issues and deficiencies at that station that need to be addressed to extend the service life of the station and meet operation and maintenance needs, including:
• The existing wet well liner is failing and exposing concrete to corrosive gasses; • Two influent slide gates have exceeded their service lives and are difficult to operate; • Pump guide rails separate and make pump removal and installation difficult; • Air valves on the force mains have failed, exposing the station to potential surge damage;
• Service vaults at the station do not have drains and regularly fill with rain water; and • The station’s force main discharge structure is severely corroded.
This project will include rehabilitation of the station to address the issues and deficiencies listed above, including coating/lining the wet well interior with epoxy, replacing the influent slide gates, rehabilitating and securing the pump guide rail systems, installing combination air valves on the two force mains, installing drain outlets and piping from the vaults, and replacing the force main discharge structure with a new polymer concrete corrosion resistant structure.
Attached is a tabulation of bids received and opened on March 12, 2024, for construction of the project. The low bid in the amount of $ 562,600 was received from SnL Group, Inc., of Redding, California. The engineer's estimate was $ 457,347. Total p roject development costs for this project are estimated to be $ 25,000. Project development costs include engineering and environmental for the project.
APPROVED
Packet Pg. 155
Attachment: Previous Staff Report 111924 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project) Report to Redding City Council March 26, 2024
Re: 4.11(d)--Award BN No. 5452 Churn Creek Lift Station Rehabilitation Page 3
Environmental Review
Staff has determined that the project is categorically exempt from environmen tal review under California Environmental Qual ity Act Guidelines , pursuant to Sections 15301 - Existing Facilities, 15302 – Replacement or Reconstruction, and 15303 - New Construction or Conversion of Small Structures . Class 1 exemptions include the minor alteration of existing public structures and facilities. Class 2 exemptions consists of replacement or reconstruction where the new structure will be located on the same site and will have substantially the same purpose and capacity. Class 3 exemptions con sist of construction and location of new small facilities and equipment, or conversion of existing structures. The existing wastewater facility will be rehabilitated in order to provide reliable service that meets public health and safety standards. The pr oject will be located on City property and will result in no expansion of use.
The action area does not have significant values for wildlife habitat or other environmental resources and the project has no potential to have a significant effect on the environment.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
^Location Map
^Bid Tabulation
^Notice of Exemption
APPROVED
Packet Pg. 156
Attachment: Previous Staff Report 111924 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project) Packet Pg. 157
Attachment: Transfer of Project Funds 110624 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Bid Schedule No. 5452 (Job No. 2663), City of Redding Churn Creek Lift Station Rehabilitation Project:
(1) Award to SnL Group, Inc., in the amount of $562,600; (2) Approve an additional $80,000 to cover the cost of administration and inspection fees; (3) Approve $25,000 for project development costs;
(4) Approve $57,000 to provide construction contingency funding; (5) Authorize the City Manager to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000; and (6) Find that the Project is categorically exempt from review under the California Environmental Quality Act , pursuant to Section 15301 - Existing Facili ties, 15302 - Replacement or Reconstruction, and 15303 - New Construction or Conversion of Small Structures.
Fiscal Impact
The Churn Creek Lift Station Rehabilitation Project (Project) is being funded by the Wastewater Utility. The Wastewater Utility has sufficient budget for this project and its funding will not impact other activities or projects.
Cost Summary
Item Estimated
Project Development Costs $25,000
Construction Contract + Contingency $619,600
Contract Administration, Inspection, Testing $80,000
Additional City Manager Authority $50,000
Total Project Costs $774,600
MEETING DATE: April 2, 2024
ITEM NO. 4.11(d)
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4.11(d)--Award Bid Negotiation No. 5452 (Job Order No. 2663) Churn Creek Lift Station Rehabilitation Project
Michael Webb, Public Works
Director
APPROVED
Packet Pg. 158
Attachment: Previous Staff Report 040224 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project) Report to Redding City Council March 26, 2024
Re: 4.11(d)--Award BN No. 5452 Churn Creek Lift Station Rehabilitation 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
City Council may choose not to award the bid for t he project and provide staff with alternate direction. If the project is not awarded, then the service life of the City of Redding ’s (City) Churn Creek Lift Station could be reduced, decreasing reliability for City customers and increasing potential risk of sanitary sewer overflows into Churn Creek.
Background/Analysis
The City currently owns and operates 18 lift stations within its wastewater collection system, including the Churn Creek Lift Station (Station). The station is located on the southwest side of Shasta View Drive and the Highway 44 overpass, between Highway 44 and Churn Creek Road, as shown in the attached location map . The station has capacity for 14.4 million gallons per day (MGD) and includes five submersible pumps located in a concrete wet well, dual force mains (20” and 16” diameter), vaults for force main maintenance and valves, a n emergency standby generator, and a control building.
The station is in decent condition overall and it is expected to have adequate capacity for the foreseeable future , but there are several issues and deficiencies at that station that need to be addressed to extend the service life of the station and meet operation and maintenance needs, including:
• The existing wet well liner is failing and exposing concrete to corrosive gasses; • Two influent slide gates have exceeded their service lives and are difficult to operate; • Pump guide rails separate and make pump removal and installation difficult; • Air valves on the force mains have failed, exposing the station to potential surge damage;
• Service vaults at the station do not have drains and regularly fill with rain water; and • The station’s force main discharge structure is severely corroded.
This project will include rehabilitation of the station to address the issues and deficiencies listed above, including coating/lining the wet well interior with epoxy, replacing the influent slide gates, rehabilitating and securing the pump guide rail systems, installing combination air valves on the two force mains, installing drain outlets and piping from the vaults, and replacing the force main discharge structure with a new polymer concrete corrosion resistant structure.
Attached is a tabulation of bids received and opened on March 12, 2024, for construction of the project. The low bid in the amount of $ 562,600 was received from SnL Group, Inc., of Redding, California. The engineer's estimate was $ 457,347. Total p roject development costs for this project are estimated to be $ 25,000. Project development costs include engineering and environmental for the project.
APPROVED
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Attachment: Previous Staff Report 040224 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project) Report to Redding City Council March 26, 2024
Re: 4.11(d)--Award BN No. 5452 Churn Creek Lift Station Rehabilitation Page 3
Environmental Review
Staff has determined that the project is categorically exempt from environmen tal review under California Environmental Qual ity Act Guidelines , pursuant to Sections 15301 - Existing Facilities, 15302 – Replacement or Reconstruction, and 15303 - New Construction or Conversion of Small Structures . Class 1 exemptions include the minor alteration of existing public structures and facilities. Class 2 exemptions consists of replacement or reconstruction where the new structure will be located on the same site and will have substantially the same purpose and capacity. Class 3 exemptions con sist of construction and location of new small facilities and equipment, or conversion of existing structures. The existing wastewater facility will be rehabilitated in order to provide reliable service that meets public health and safety standards. The pr oject will be located on City property and will result in no expansion of use.
The action area does not have significant values for wildlife habitat or other environmental resources and the project has no potential to have a significant effect on the environment.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
^Location Map
^Bid Tabulation
^Notice of Exemption
APPROVED
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Attachment: Previous Staff Report 040224 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project)
APPROVED
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Attachment: Previous Staff Report 040224 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project) BID TABULATION FOR:
Churn Creek Lift Station Rehabilitation
ENGINEER'S EST RTA Construction, Inc AVERAGES
3/12/2024 UNIT UNIT UNIT UNIT
ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE 1 Water Pollution Control LS 1 $5,000.00 $5,000.00 $600.00 $600.00 $4,000.00 $4,000.00 $2,300.00 2 Trench Sheeting & Shoring LS 1 $5,000.00 $5,000.00 $6,000.00 $6,000.00 $5,000.00 $5,000.00 $5,500.00 3 Lift Station Rehabilitation LS 1 $447,347.00 $447,347.00 $556,000.00 $556,000.00 $670,000.00 $670,000.00 $613,000.00 Average Bid
TOTAL - CONTRACT ITEMS $457,347.00 $562,600.00 $679,000.00 $620,800.00 Bid Schedule No.: 5452
SnL Group, Inc
APPROVED
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Attachment: Previous Staff Report 040224 (4.11(d)--Approve Increase to Project Budget for Churn Creek
APPROVED
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Attachment: Previous Staff Report 040224 (4.11(d)--Approve Increase to Project Budget for Churn Creek Lift Station Rehabilitation Project)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Conduct a Joint Public Hearing with the Redding Joint Powers Financing Authorit y and, upon conclusion:
(1) Adopt Resolution:
(a) Approving the issuance by the Redding Joint Powers Financing Authority of its Electric System Revenue Bonds, 2025 Series A, in an amount not to exceed $70 million to finance the 2025A Electric System Project;
(b) Authorizing the execution and delivery of an Installment Sale Agreement, a Purchase Contract, and a Continuing Disclosure Agreement;
(c) Approving the form and distribution of the Official Statement; and (d) Authorizing the execution of documents and the taki ng of all necessary actions relating to the financing.
Fiscal Impact
The additional debt service for financing the significant replacement and upgrades to overhead and underground infrastructure systems, enhancements, and construction at the Redding Pow er Plant will result in an additional debt service cost of approximately $3.6 million annually. The currently approved 5-year plan for the Redding Electric Utility (REU) anticipates this increased spending. A pay-as-you-go approach would necessitate a high er rate increase than anticipated in the current financial plan.
MEETING DATE: March 18, 2025
ITEM NO. 6.1
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 6.1--Joint Public Hearing and resolution to consider authorization of the issuance of bonds to f inance the significant replacement and upgrades to overhead and underground infrastructure systems, enhancements and construction at the Redding Power Plant.
Nick Zettel, Director of
Redding Electric Utility
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Report to Redding City Council March 13, 2025
Re: 6.1--Joint Public Hearing re Issuance of Bonds for REU Page 2
Alternative Action
The City Council could choose to d ecline to adopt the resolution. The City of Redding (City) will not be able to move forward with a bond issuance to finance the a dditions, betterments, extensions, and improvements to the electric utility system of the City, including replacement and upgrades to overhead and underground infrastructure systems, and construction of an administration building at the Redding Power Plant.
Background/Analysis
The City Council, at its meeting on August 15, 2023, adopted resolution No. 2023 -078 declaring the official intent of the C ity to reimburse itself for certain capital expenditures related to REU s replacement of existing general sys tem infrastructure and design, acquisition, construction, and equipping of new infrastructure projects from the proceeds of tax -exempt debt obligations (Bonds). Approximately $15.7 million has been spent to date. A resolution is attached which will authorize taking all necessary actions to issue the Electric System Revenue Bonds, 2025 Series A.
This project includes substantial upgrades to underground and overhead infrastructure systems, enhancements, and new construction at the plant to improve reliabilit y, efficiency, and long-term operational sustainability. These improvements are essential for maintaining system resilience, reducing maintenance costs, and ensuring uninterrupted service.
Given the significant scope and lasting benefits of these investme nts, the City plans to finance the project by issuing tax -exempt bonds. This funding approach allows for reimbursing expenditures related to critical infrastructure modernization, ensuring financial prudence while addressing the system's long -term needs. B y leveraging bond financing, the City can spread the cost of these improvements over time, aligning expenses with the extended lifespan of the upgraded infrastructure and plant facilities.
Environmental Review
This is not a project defined under the Cali fornia Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10 -year Financial Plans for all funds.”
Attachments
^Resolution
Installment Sale Agreement
Purchase Contract
Continuing Disclosure Agreement
Preliminary Official Statement
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RESOLUTION NO. 2025-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE ISSUANCE BY THE REDDING JOINT POWERS
FINANCING AUTHORITY OF ELECTRIC SYSTEM REVENUE BONDS;
AUTHORIZING EXECUTION AND DELIVERY OF AN INSTALLMENT
SALE AGREEMENT, A PURCHASE CONTRACT AND A CONTINUING
DISCLOSURE AGREEMENT; APPROVING FORM OF OFFICIAL
STATEMENT; AND AUTHORIZING EXECUTION OF DOCUMENTS
AND THE TAKING OF ALL NECESSARY ACTIONS RELATING TO
THE FINANCING WITH THE REDDING JOINT POWERS FINANCING
AUTHORITY
WHEREAS, the City of Redding (the “City”) and the Housing Authority of the City of Redding (the “Housing Authority”) have heretofore executed a joint exercise of powers agreement, dated December 6, 1988, and thereafter amended (the “Joint Powers Agreement”), by and between the City and the Housing Authority, which Joint Powers Agreement creates and establishes the Redding Joint Powers Financing Authority (the “Authority”); and
WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, the Authority is authorized to issue bonds for financing or refinancing public capital improvements whenever there are significant public benefits to be realized; and
WHEREAS, the City has determined that it is desirab le and furthers the public purpose to assist in the financing of the additions, betterments, extensions and improvements to the electric utility system of the City set forth in Exhibit A hereto (the “ 2025A Electric System Project”); and
WHEREAS, the City desires to enter into a 2025A Installment Sale Agreement (the “2025A Installment Sale Agreement”), pursuant to which the City will sell the 2025A Electric System Project to the Authority an d the City will purchase the 2025A Electric System Project from the Authority, all as more fully set forth in the 2025A Installment Sale Agreement; and
WHEREAS, the City desires to approve the Authority’s issuance of not to exceed $70,000,000 aggregate principal amount of Redding Joint Powers Financing Authority Electri c System Revenue Bonds, 2025A Series A (the “ Bonds”), for the purpose of financing the 2025A Electric Systems Project; and
WHEREAS, the Authority and City will enter into a Purchase Contract (the “Purchase Contract”) with J.P. Morgan Securities LLC (the “Underwriter”); and
WHEREAS, in order to assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2 -12, the City will execute and deliver a Continuing Disclosure Agreement (the “Continuing Disclosure Agreement”); and
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WHEREAS, there have been submitted , and are on file with the City Clerk , proposed forms of the 2025A Installment Sale Agreement, Purchase Contract, Continuing Disclosure Agreement and an Official Statement with respect to the Bonds proposed to be issued by the Authority, and a Trust Agreement by and between the Authority and U.S. Bank Trust Company, National Association, as Trustee (the “Trust Agreement”); and
WHEREAS, pursuant to Section 6586.5 of the California Government Code, this City Council hereby determines that there are significant public benefits, including through demonstrable savings in the effective interest rates and bond issuance costs expected to be paid for the Bonds issued to finance the 2025A Electric System Project, and that it furthers the publi c purpose to assist in such financing and refinancing;
NOW THEREFORE, the City Council of the City of Redding hereby finds, determines, declares and resolves as follows:
Section 1. All of the recitals set forth above are true and correct, and the City Council so finds and determines.
Section 2. The City Council hereby approves the issuance of the Bonds by the Authority, in an aggregate principal amount not to exceed $ 70,000,000, to finance the 2025A Electric System Project. The officers of the City are hereby directed to perf orm the duties, if any, imposed upon the City by the provisions of the financing documents approved herein, including the Trust Agreement and the 2025A Installment Sale Agreement, and the Director of Finance of the City is hereby authorized and directed to hold the funds and accounts created in said financing documents and directed or permitted to be held by the City.
Section 3. The proposed form of 2025A Installment Sale Agreement by and between the City and the Authority, on file with the City Clerk, is hereby appro ved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver an installment sale agreement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the term of said installment sale agreement shall end no later than June 1, 2055 and the interest rates result in a true interest cost for the Bonds of not to exceed of six percent (6.0%) per annum.
Section 4. The proposed form of Purchase Contract , by and among the Underwriter, the Authority and the City, on file with the City Clerk, is hereby ap proved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is each hereby authorized and directed, on behalf of the City, to execute and deliver a purchase contract in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, the underwriting discount (not including original issue discount) shall not exceed one- half of one percent (0.5%) of the aggregate principal amount of the Bonds.
Section 5. The proposed form of Continuing Disclosure Agreement, by and between the City and U.S. Bank Trust Company, National Association, as trustee and Packet Pg. 167
Attachment: ^Resolution (6.1--Joint Public Hearing re Issuance of Bonds for REU)
3 4145-2850-3379.3
dissemination agent, on file with the City Clerk, is hereby appr oved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is hereby authorized and directed to and in the name and on the behalf of the City, to execute and deliver a continuing disclosure agreement in substantially sai d form with said changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.
Section 6. The proposed form of Official Statement relating to the Bonds (the “Official Statement”), on file wi th the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver an Official Statement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. The Underwriter is hereby directed to distribute copies of the Official Statemen t to all actual purchasers of the Bonds. Distribution by the Underwriter of a preliminary Official Statement relating to the Bonds is hereby approved and the Mayor or City Manager of the City (or other officer designated by the City Manager) is hereby authorized and directed to execute a certificate confirming that the preliminary Official Statement has been “deemed final” by the City for purposes of Securities and Exchange Commission Rule 15c2-12.
Section 7. The Mayor or City Manager of the City (or other officer designated by the City Manager) is hereby authorized, upon a determination by such officer that the procurement of such policy is in the best interests of the City, to procure and maintain a policy of municipal bond insurance for the benefit of the registere d owners of one or more maturities of the Bonds in such form and on such terms as such officer shall require or approve, such approval to be conclusively evidenced by the execution and delivery of the commitment for and on behalf of the City to the issuer of such municipal bond insurance policy or surety bond.
Section 8. The City Clerk is hereby authorized and directed to attest the signature of the Mayor, City Manager or other officers of the City as may be required in connection with the execution and delivery of t he Bonds and the 2025A Installment Sale Agreement, Purchase Contract and Continuing Disclosure Agreement in accordance with this Resolution.
Section 9. The officers and City Council Members of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents and certificates which they deem necessary or advisable in order to consummate the execution and delivery of the documents mentioned herein and otherwise to effectuate the purposes of this Resolution and the transactions contemplated hereby.
Section 10. All actions heretofore taken by the officers and agents of the City with respect to the financing of the 2025A Electric System Project are hereby ratified, confirmed and approved.
Section 11. This Resolution shall take effect from and after its adoption and approval.
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Attachment: ^Resolution (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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I HEREBY CERTIFY that the foregoing resolution was introduced and duly passed and adopted by the City Council of the City of Redding at a regular meeting thereof held on the 18th day of March, 2025, by the following vote of the members thereof:
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
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Attachment: ^Resolution (6.1--Joint Public Hearing re Issuance of Bonds for REU)
A-1
4145-2850-3379.3
EXHIBIT A
2025A ELECTRIC SYSTEM PROJECT
The 2025A Electric System Project consists of certain additions, betterments, extensions and improvements to the electric utility system of the City of Redding, including but not limited to the following:
• Overhead/Underground Infrastructure Enhancements/Modernization • Substation Security Improvements
• Redding Power Plant Maintenance & Operations Building • Transmission & Distribution Facility Enhancements/Upgrades • Back-up Power Control Center Relocation and Enhancements • Geographic Information System Utility Network Upgrade/Software Replacement • Major Maintenance to Redding Power Plant
• General System Improvements
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Attachment: ^Resolution (6.1--Joint Public Hearing re Issuance of Bonds for REU) OH&S DRAFT – Distributed 02/18/2025
4142-9327-8035.3
2025A INSTALLMENT SALE AGREEMENT
by and between the
CITY OF REDDING,
as purchaser
and the
REDDING JOINT POWERS FINANCING AUTHORITY,
as seller
for the purchase of the City of Redding 2025A Electric System Project Dated as of April 1, 2025
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Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
TABLE OF CONTENTS
Page
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ARTICLE I DEFINITIONS .......................................................................................................... 1 SECTION 1.01. Definitions...................................................................................... 1 ARTICLE II PURCHASE OF THE THE 2025A ELECTRIC SYSTEM PROJECT ................ 14 SECTION 2.01. Purposes ....................................................................................... 14 SECTION 2.02. Transfer of 2025A Electric System Project Owned by the City on the Delivery Date ............................................................ 15 SECTION 2.03. Purchase of 2025A Electric System Project by the City .............. 15 SECTION 2.04. Additions, Betterments, Extensions and Improvements to the 2025A Electric System Project .............................................. 15 ARTICLE III THE 2025A INSTALLMENT SALE PAYMENTS AND
PREPAYMENTS ........................................................................................... 15 SECTION 3.01. Purchase Price .............................................................................. 15 SECTION 3.02. Pledge of Net Revenues and Moneys in Electric Revenue Fund; Electric Revenue Fund....................................................... 16 SECTION 3.03. Prepayment of 2025A Installment Sale Payments ....................... 18 SECTION 3.04. 2025A Installment Sale Payments Payable on a Parity with Outstanding 2015 Installment Sale Payments, 2017 Bonds
and 2018 Bonds............................................................................ 18 ARTICLE IV ADDITIONAL OBLIGATIONS .......................................................................... 18 SECTION 4.01. Conditions for the Execution of Parity Obligations ..................... 18 SECTION 4.02. Subordinate Obligations............................................................... 20 ARTICLE V COVENANTS OF THE CITY .............................................................................. 20 SECTION 5.01. Compliance with 2025A Installment Sale Agreement and Trust Agreement .......................................................................... 20 SECTION 5.02. Against Encumbrances................................................................. 20 SECTION 5.03. Sale or Other Disposition of Property .......................................... 21 SECTION 5.04. Tax Covenants ............................................................................. 21 SECTION 5.05. Prompt Acquisition and Construction of the 2025A Electric System Project ............................................................................. 22 SECTION 5.06. Maintenance and Operation of the Electric System; Budgets ........................................................................................ 22 SECTION 5.07. Compliance with Contracts .......................................................... 22 SECTION 5.08. Insurance ...................................................................................... 22 SECTION 5.09. Accounting Records and Financial Statements............................ 22 SECTION 5.10. Protection of Security and Rights of the Authority and the Trustee.......................................................................................... 23 SECTION 5.11. Payment of Taxes and Compliance with Governmental Regulations .................................................................................. 23 SECTION 5.12. Amount of Rates and Charges ..................................................... 23 Packet Pg. 172
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TABLE OF CONTENTS
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SECTION 5.13. Collection of Rates, Fees and Charges ........................................ 23 SECTION 5.14. Further Assurances....................................................................... 23 SECTION 5.15. Continuing Disclosure ................................................................. 24 ARTICLE VI EVENTS OF DEFAULT AND REMEDIES ....................................................... 24 SECTION 6.01. Events of Default and Acceleration of Principal ......................... 24 SECTION 6.02. Application of Net Revenues upon Acceleration ......................... 25 SECTION 6.03. Other Remedies ............................................................................ 25 SECTION 6.04. Non-Waiver.................................................................................. 26 SECTION 6.05. Remedies Not Exclusive .............................................................. 26 ARTICLE VII DISCHARGE OF OBLIGATIONS .................................................................... 26 SECTION 7.01. Discharge of Obligations ............................................................. 26 ARTICLE VIII MISCELLANEOUS .......................................................................................... 27 SECTION 8.01. Liability of the City Limited to Net Revenues............................. 27 SECTION 8.02. Amendments ................................................................................ 28 SECTION 8.03. Assignment of 2025A Installment Sale Agreement..................... 28 SECTION 8.04. Benefits of 2025A Installment Sale Agreement Limited to Parties ........................................................................................... 28 SECTION 8.05. Successor Is Deemed Included in all References to Predecessor .................................................................................. 28 SECTION 8.06. Waiver of Personal Liability ........................................................ 28 SECTION 8.07. Article and Section Headings, Gender and References ............... 29 SECTION 8.08. Partial Invalidity........................................................................... 29 SECTION 8.09. Net Contract ................................................................................. 29 SECTION 8.10. California Law ............................................................................. 29 SECTION 8.11. Indemnification ............................................................................ 29 SECTION 8.12. Funds ............................................................................................ 30 SECTION 8.13. Notices ......................................................................................... 30 SECTION 8.14. Effective Date .............................................................................. 30 SECTION 8.15. Execution in Counterparts............................................................ 31
EXHIBIT A 2025A ELECTRIC SYSTEM PROJECT
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Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
1 4142-9327-8035.3
2025A INSTALLMENT SALE AGREEMENT
This 2025A INSTALLMENT SALE AGREEMENT (the “2025A Installment Sale Agreement”), dated as of April 1, 2025, by and between the CITY OF REDDING, a municipal corporation duly organized and existing under and by virtue of the laws of the State of California (the “City”), and the REDDING JOINT POWERS FINANCING AUTHORITY (the “Authority”), a public entity and agency, duly organized and existing pursuant to an agreement entitled “Joint Exercise of Powers Agreement by and between the City and the Housing Authority of the City of Redding,”
W I T N E S S E T H:
WHEREAS, the City is authorized by law to acquire facilities for the generation, transmission and distribution of electricity; and
WHEREAS, the City has determined that the additions, betterments, extensions and improvements in the manner described herein to certain facilities (the “2025A Electric System Project”) is necessary and proper for City purposes and uses under the terms of applicable law; and
WHEREAS, the Authority has determined to acquire and construct the 2025A Electric System Project for, and sell the 2025A Electric System Project to, the City; and WHEREAS, the City has determined to make installment sale payments as hereinafter described to the Authority for the purchase of the 2025A Electric System Project and for the repayment of the costs of the additions, betterments, extensions and improvements to the 2025A Electric System Project and the incidental costs and expenses related thereto paid by the Authority; and
WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and delivery of this 2025A Installment Sale Agreement do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this 2025A Installment Sale Agreement;
NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES AND OF
THE MUTUAL AGREEMENTS AND COVENANTS CONTAINED HEREIN AND FOR
OTHER VALUABLE CONSIDERATION, THE PARTIES HERETO DO HEREBY AGREE AS FOLLOWS:
ARTICLE I
DEFINITIONS
SECTION 1.01. Definitions. Unless the context otherwise requires, the terms defined in this section shall for all purposes hereof and of any amendment hereof or supplement hereto and of any opinion or report or other document mentioned herein or therein have the Packet Pg. 174
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meanings defined herein, the following definitions to be equally applicable to both the singular and plural forms of any of the terms defined herein. Capitalized terms used in this 2025A Installment Sale Agreement and not otherwise defined shall have the meanings set forth in the Trust Agreement.
Acquisition Fund
“Acquisition Fund” means the fund by that name established pursuant to Section 2.11 of the Trust Agreement.
Adjusted Annual Debt Service
“Adjusted Annual Debt Service” means, for any Fiscal Year or any designated twelve (12) month period in question, the Annual Debt Service for such Fiscal Year or twelve month period minus the sum of the amount of the Annual Debt Service with respect to Outstanding Parity Obligations to be paid during such Fiscal Year or twelve month period, from the proceeds of Parity Obligations or interest earned thereon (other than interest deposited into the Electric Revenue Fund), all as set forth in a Certificate of the City.
Adjusted Annual Net Revenues
“Adjusted Annual Net Revenues” mean, for any Fiscal Year or any designated twelve (12) month period in question, the Adjusted Annual Revenues during such Fiscal Year or twelve month period less the Maintenance and Operation Costs during such Fiscal Year or twelve month period.
Adjusted Annual Revenues
“Adjusted Annual Revenues” mean, for any Fiscal Year or any designated twelve (12) month period in question, the Revenues during such Fiscal Year or twelve-month period, less, for purposes of determining compliance with Section 5.12 and conditions for the execution of Parity Obligations, any Payment Agreement Receipts taken into account in calculating Annual Debt Service pursuant to paragraph (C) of the definition thereof, plus, for the purposes of determining compliance with Section 5.12 hereof only, the amount of Available Reserves on deposit, or which the City has authorized to be deposited, in the Electric Revenue Fund as of the first day of such Fiscal Year or twelve month period.
Annual Debt Service
“Annual Debt Service” means, for any Fiscal Year or any designated twelve (12) month period in question, (i) with respect to the 2025A Installment Sale Payments, the required payments scheduled to be made with respect to all Outstanding 2025A Installment Sale Payments in such Fiscal Year or twelve (12) month period, or (ii) with respect to Parity Obligations, the required payments scheduled to be made with respect to all Outstanding Parity Obligations in such Fiscal Year or twelve (12) month period provided, that for the purposes of determining compliance with Section 5.12 and conditions for the execution of Parity Obligations:
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(A) Generally. Except as otherwise provided by subparagraph (B) with respect to Variable Interest Rate Parity Obligations and by subparagraph (C) with respect to Parity Obligations as to which a Payment Agreement is in force, and by subparagraph (D) with respect to certain Parity Payment Agreements, interest on any Parity Obligation shall be calculated based on the actual amount of interest that is payable under that Parity Obligation; (B) Interest on Variable Interest Rate Parity Obligations. The amount of interest deemed to be payable on any Variable Interest Rate Parity Obligation shall be calculated on the assumption that the interest rate on that Parity Obligation would be equal to the Assumed RBI-based Rate;
(C) Interest on Payments or Parity Obligations with respect to which a Payment Agreement is in force. The amount of interest deemed to be payable on any Parity Obligations with respect to which a Payment Agreement is in force shall, so long as the Qualified Counterparty thereto is not in default thereunder, be based on the net economic effect on the City expected to be produced by the terms of such Parity Obligation and such Payment Agreement, including but not limited to the effects that (i) such Parity Obligation would, but for such Payment Agreement, be treated as an obligation bearing interest at a Variable Interest Rate instead shall be treated as an obligation bearing interest at a fixed interest rate, and (ii) such Parity Obligation would, but for such Payment Agreement, be treated as an obligation bearing interest at a fixed interest rate instead shall be treated as an obligation bearing interest at a Variable Interest Rate; and accordingly, the amount of interest deemed to be payable on any Parity Obligation with respect to which a Payment Agreement is in force shall, so long as the Qualified Counterparty thereto is not in default thereunder, be an amount equal to the amount of interest that would be payable at the rate or rates stated in such Parity Obligation plus the Payment Agreement Payments minus the Payment Agreement Receipts, and for the purpose of calculating Payment Agreement Receipts and Payment Agreement Payments under such Payment Agreement, the following assumptions shall be made:
(1) Counterparty Obligated to Pay Actual Variable Interest Rate on Variable Interest Rate Parity Obligations. If the Payment Agreement obligates a Qualified Counterparty to make payments to the City based on the actual Variable Interest Rate on a Parity Obligation that would, but for the Payment Agreement, be treated as a Variable Interest Rate Parity Obligation and obligates the City to make payments to the Qualified Counterparty based on a fixed rate, payments by the City to the Qualified Counterparty shall be assumed to be made at the fixed rate specified by the Payment Agreement and payments by the Qualified Counterparty to the City shall be assumed to be made at the actual Variable Interest Rate on such Parity Obligation, without regard to the occurrence of any event that, under the provisions of the Payment Agreement, would permit the Qualified Counterparty to make payments on any basis other than the actual Variable Interest Rate on such Parity Obligation, and such Parity Obligation shall set forth a debt service schedule based on that assumption; (2) Variable Interest Rate Parity Obligations and Payment Agreements Having the Same Variable Interest Rate Component. If both a Payment Agreement and the related Parity Obligation that would, but for the Payment Agreement, be treated as a Variable Interest Rate Parity Obligation include a variable interest rate payment Packet Pg. 176
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component that is required to be calculated on the same basis (including, without limitation, on the basis of the same variable interest rate index), it shall be assumed that the variable interest rate payment component payable pursuant to the Payment Agreement is equal in amount to the variable interest rate component payable on such Parity Obligation;
(3) Variable Interest Rate Parity Obligations and Payment Agreements Having Different Variable Interest Rate Components. If a Payment Agreement obligates either the City or the Qualified Counterparty to make payments of a variable interest rate component on a basis that is different (including, without limitation, on a different variable interest rate index) from the basis that is required to be used to calculate interest on the Parity Obligation that would, but for the Payment Agreement, be treated as a Variable Interest Rate Parity Obligation it shall be assumed:
(a) City Obligated to Make Payments Based on Variable
Interest Rate Index. If payments by the City under the Payment Agreement are based on a variable interest rate index and payments by the Qualified Counterparty are based on a fixed interest rate, payments by the City to the Qualified Counterparty will be based upon an interest rate equal to the Assumed RBI-based Rate, and payments by the Qualified Counterparty to the City will be based on the fixed rate specified by the Payment Agreement; and (b) City Obligated to Make Payments Based on Fixed Interest Rate. If payments by the City under the Payment Agreement are based on a fixed interest rate and payments by the Qualified Counterparty are based on a variable interest rate index, payments by the City to the Qualified Counterparty will be based on an interest rate equal to the rate that is one hundred and five percent (105%) of the fixed interest rate specified by the Payment Agreement to be paid by the City, and payments by the Qualified Counterparty to the City will be based on a rate equal to the Assumed RBI-based Rate as the variable interest rate deemed to apply to the Variable Interest Rate Parity Obligation. (4) Certain Payment Agreements May be Disregarded.
Notwithstanding the provisions of subparagraphs (C)(1), (2) and (3) of this definition, the City shall not be required to (but may at its option) take into account as set forth in subparagraph (C) of this definition (for the purpose of determining Annual Debt Service) the effects of any Payment Agreement that has a remaining term of ten (10) years or less; (D) Debt Service on Parity Payment Agreements. No interest shall be taken into account with respect to a Parity Payment Agreement for any period during which Payment Agreement Payments on that Parity Payment Agreement are taken into account in determining Annual Debt Service on a related Parity Obligation under subparagraph (C) of this definition; provided, that for any period during which Payment Agreement Payments are not taken into account in calculating Annual Debt Service on any Parity Obligation because the Parity Payment Agreement is not then related to any other Parity Obligation, interest on that Parity Payment Agreement shall be taken into account by assuming:
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(1) City Obligated to Make Payments Based on Fixed Interest Rate. If the City is obligated to make Payment Agreement Payments based on a fixed interest rate and the Qualified Counterparty is obligated to make payments based on a variable interest rate index, payments by the City will be based on the specified fixed rate, and payments by the Qualified Counterparty will be based on a rate equal to the average rate determined by the variable interest rate index specified by the Payment Agreement during the calendar quarter preceding the calendar quarter in which the calculation is made; and (2) City Obligated to Make Payments Based on Variable Interest Rate Index. If the City is obligated to make Payment Agreement Payments based on a variable interest rate index and the Qualified Counterparty is obligated to make payments based on a fixed interest rate, payments by the City will be based on an interest rate equal to the average rate determined by the variable interest rate index specified by the Payment Agreement during the calendar quarter preceding the calendar quarter in which the calculation is made, and the Qualified Counterparty will make payments based on the fixed rate specified by the Parity Payment Agreement; and (3) Certain Payment Agreements May be Disregarded.
Notwithstanding the provisions of subparagraphs (D)(1) and (2) of this definition, the City shall not be required to (but may at its option) take into account (for the purpose of determining Annual Debt Service) the effects of any Payment Agreement that has a remaining term of ten (10) years or less;
(E) Balloon Parity Obligations. For purposes of calculating Annual Debt Service on any Balloon Parity Obligations, it shall be assumed that the principal of those Balloon Parity Obligations, together with interest thereon at a rate equal to the Assumed RBI-based Rate, will be amortized in equal annual installments over a term of thirty (30) years from the date of issuance.
Assumed RBI-based Rate
“Assumed RBI-based Rate” means, as of any date of calculation, an assumed interest rate equal to ninety percent (90%) of the average RBI during the twelve (12) calendar months immediately preceding the month in which the calculation is made.
Available Reserves
“Available Reserves” mean, as of any date of calculation, the amount of unrestricted funds in the Electric Revenue Fund designated as “Available Reserves” by the City and then available to pay Maintenance and Operation Costs and/or Annual Debt Service which may include transfers to the Electric Revenue Fund from any fund which is legally available for deposit in the Electric Revenue Fund.
Balloon Parity Obligation
“Balloon Parity Obligation” means any Parity Obligation described as such in such Parity Obligation.
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Bonds, Serial Bonds, Term Bonds
“Bonds” means the Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2025 Series A, authorized by and at any time Outstanding pursuant to the Trust Agreement and issued in accordance with the Trust Agreement. “Serial Bonds” means Bonds for which no sinking fund payments are provided. “Term Bonds” means Bonds which are payable on or before their specified maturing dates from sinking fund payments established for that purpose and calculated to retire such Bonds on or before their specified maturity dates. 2017 Bonds
“2017 Bonds” means $55,785,000 aggregate principal amount of the City of Redding Electric System Refunding Revenue Bonds, Series 2017, authorized, executed, issued and delivered by the City under and pursuant to the Refunding Bond Law and under and pursuant to an indenture, dated as of March 1, 2017, by and between the City and U.S. Bank Trust Company, National Association, as successor trustee, and that are secured thereby. 2018 Bonds
“2018 Bonds” means $39,510,000 aggregate principal amount of the City of Redding Electric System Refunding Revenue Bonds, Series 2018, authorized, executed, issued and delivered by the City under and pursuant to the Refunding Bond Law and under and pursuant to an indenture dated March 1, 2018, by and between the City and U.S. Bank Trust Company, National Association, as successor trustee, and that are secured hereby.
Business Day
“Business Day” shall have the meaning set forth in the Trust Agreement.
Certificate of the City
“Certificate of the City” means an instrument in writing signed by the Mayor, City Manager or Director of Finance of the City, or by another officer of the City duly authorized by the City for that purpose.
City
“City” means the City of Redding, a municipal corporation duly organized and existing under and by virtue of the laws and Constitution of the State of California.
City Council
“City Council” means the City Council of the City.
Code
“Code” means the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder.
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Defeasance Securities
“Defeasance Securities” shall have the same meaning set forth in the Trust Agreement.
Delivery Date
“Delivery Date” means April __, 2025.
Electric Revenue Fund
“Electric Revenue Fund” means the City of Redding Electric Revenue Fund established by the City, which fund is to be maintained and applied by the City in accordance with Section 3.02 hereof.
Electric Service
“Electric Service” means the electricity furnished, made available or sold by the Electric System.
Electric System
“Electric System” means the electric utility system of the City, comprising all electric generation, transmission and distribution facilities and all general plant facilities related thereto now owned by the City and all other properties, structures or works for the generation, transmission and distribution of electricity hereafter acquired by the City and determined by the City to be a part of the Electric System, including all contractual rights for electricity and capacity; together with all additions, betterments, extensions or improvements to such facilities, properties, structures or works or any part thereof hereafter acquired. 2025A Electric System Project
“2025A Electric System Project” means the additions, betterments, extensions and improvements to the Electric System set forth in Exhibit A hereto, including costs reimbursable to the City, and all reports, surveys and feasibility studies relating to such project, and with such additions, substitutions and deletions as shall be specified in a Certificate of the City stating that such additions, substitutions or deletions constitute improvements to the Electric System.
Event of Default
“Event of Default” means an event described in Section 6.01.
Fiscal Year
“Fiscal Year” means the period beginning on July 1 of each year and ending on the next succeeding June 30, or any other annual accounting period hereafter selected and designated by the City Council of the City as the Fiscal Year of the City.
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Fitch
“Fitch” means Fitch Ratings, Inc., a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, and its successors or assigns, except that if such corporation shall be dissolved or liquidated or shall no longer perform the services of a municipal securities rating agency, then “Fitch” shall be deemed to refer to any other nationally recognized municipal securities rating agency rating Parity Obligations at the Request of the City.
Generally Accepted Accounting Principles
“Generally Accepted Accounting Principles” means the uniform accounting and reporting procedures set forth in publications of the American Institute of Certified Public Accountants or its successor and the Governmental Accounting Standards Board or its successor, or by any other generally accepted authority on such procedures, and includes, as applicable, the standards set forth by the Financial Accounting Standards Board or its successor.
Independent Certified Public Accountant
“Independent Certified Public Accountant” means any certified public accountant or firm of such accountants duly licensed and entitled to practice and practicing as such under the laws of the State, appointed and paid by the City, and who, or each of whom:
(A) is in fact independent according to the Statement of Auditing Standards No. 1 and not under the domination of the City;
(B) does not have a substantial financial interest, direct or indirect, in the operations of the City; and
(C) is not connected with the City as a councilmember, officer or employee of the City, but who may be regularly retained to audit the accounting records of and make reports thereon to the City.
2015 Installment Sale Agreement
“2015 Installment Sale Agreement” means that certain 2015 Installment Sale Agreement, dated as of December 1, 2015, by and between the City and the Authority. 2025A Installment Sale Agreement
“2025A Installment Sale Agreement” means this 2025A Installment Sale Agreement, by and between the City and the Authority, dated as of April 1, 2025, as originally executed and as it may from time to time be amended or supplemented in accordance herewith and with the terms of the Trust Agreement.
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2015 Installment Sale Payments
“2015 Installment Sale Payments” means the installment sale payments payable by the City under and pursuant to the 2015 Installment Sale Agreement. 2025A Installment Sale Payments
“2025A Installment Sale Payments” means the installment sale payments payable by the City under and pursuant to this 2025A Installment Sale Agreement.
Insurance Consultant
“Insurance Consultant” means
(a) the Risk Manager for the City or
(b) any insurance consultant or firm of insurance consultants generally recognized to be well qualified in insurance consulting matters relating to electric utility and other municipal systems, appointed and paid by the City, and who or each of whom -- (1) is in fact independent and not under the domination of the City; (2) does not have a substantial financial interest, direct or indirect, in the operations of the City; and
(3) is not connected with the City as a councilmember, officer, or employee of the City, but may be regularly retained to make reports to the City.
Interest Payment Date
“Interest Payment Date” means June 1 and December 1 of each year, commencing on June 1, 2025.
Maintenance and Operation Costs
“Maintenance and Operation Costs” mean the costs paid or incurred by the City for maintaining and operating the Electric System including, but not limited to, (a) all costs of electric energy and power generated or purchased by the City for resale, costs of transmission, fuel supply and water supply in connection with the foregoing, (b) all expenses of management and repair and other expenses necessary to maintain and preserve the Electric System in good repair and working order, (c) all administrative costs of the City that are charged directly or apportioned to the operation of the Electric System, such as salaries and wages of employees, overhead, taxes (if any) and insurance premiums, (d) all other reasonable and necessary costs of the City or charges required to be paid by it to comply with the terms hereof or of any resolution authorizing the execution of this 2025A Installment Sale Agreement or of any resolution authorizing the issuance of any Parity Obligations or of such Parity Obligations, such as compensation, reimbursement and indemnification of the trustee, remarketing agent or surety costs for this 2025A Installment Sale Agreement or Parity Obligations, letter of credit fees Packet Pg. 182
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relating to Parity Obligations, fees and expenses of Independent Certified Public Accountants; (e) all amounts required to be paid by the City under contracts with a joint powers agency for the purchase of capacity, energy, transmission capability or any other commodity or service in connection with the foregoing, which contract requires payments to be made by the City thereunder to be treated as maintenance and operation costs of the Electric System; (f) all deposits to be made to the Rebate Fund pursuant to the Tax Certificate and all deposits in comparable accounts established with respect to Parity Obligations required to be deposited pursuant to the proceedings authorizing such Parity Obligations; and (g) any other cost or expense which, in accordance with Generally Accepted Accounting Principles, is to be treated as a cost of operating or maintaining the Electric System; but excluding in all cases depreciation, replacement and obsolescence charges or reserves therefor and amortization of intangibles.
Maximum Annual Debt Service
“Maximum Annual Debt Service” means with respect to any period of time, the greatest Annual Debt Service payable during such period of time on the Outstanding 2025A Installment Sale Payments and any Outstanding Parity Obligations or Parity Obligations then being issued.
Moody’s
“Moody’s” means Moody’s Investors Service, Inc., a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, and its successors or assigns, except that if such corporation shall be dissolved or liquidated or shall no longer perform the services of a municipal securities rating agency, then “Moody’s” shall be deemed to refer to any other nationally recognized municipal securities rating agency rating Parity Obligations at the Request of the City.
Net Revenues
“Net Revenues” mean, for any period of time in question, the Revenues during such period less the Maintenance and Operation Costs during such period.
Opinion of Counsel
“Opinion of Counsel” means a written opinion of counsel of national representation generally recognized to be well qualified in the field of law relating to municipal bonds, retained by the City.
Outstanding
“Outstanding,” when used as of any particular time with reference to 2025A Installment Sale Payments, means all 2025A Installment Sale Payments which have not been paid or otherwise satisfied as provided in Article VII and when used as of any particular time with reference to Parity Obligations means all Parity Obligations which have not been paid or otherwise satisfied as provided in the proceedings and instruments pursuant to which such Parity Obligations have been issued or incurred. For purposes of Section 4.01 and Section 5.12 hereof only, (i) Parity Payment Agreements related to other Parity Obligations which are included in Packet Pg. 183
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determining Annual Debt Service on such other Parity Obligations, and (ii) Parity Bank Agreements as to which no amounts have been drawn under any such Parity Bank Agreements which have not been reimbursed by the City shall not be considered Outstanding for purposes of this 2025A Installment Sale Agreement.
“Outstanding,” when used as of any particular time with reference to Parity Obligations means all Parity Obligations which have not been paid or otherwise satisfied as provided in the proceedings and instruments pursuant to which such Parity Obligations have been issued or incurred.
Parity Bank Agreement
“Parity Bank Agreement” means an agreement with a bank or other financial institution relating to an irrevocable letter of credit, guarantee or other credit enhancement device providing liquidity or irrevocable credit or security for the payment of Parity Obligations.
Parity Obligations
“Parity Obligations” means the 2015 Installment Sale Payments, the 2017 Bonds, the 2018 Bonds, all obligations hereafter issued or incurred by the City the payment of which constitutes a charge and lien on the Net Revenues and moneys in the Electric Revenue Fund equal to and on a parity with the charge and lien upon the Net Revenues for the payment of the 2025A Installment Sale Payments.
Parity Payment Agreement
“Parity Payment Agreement” means a Payment Agreement which is a Parity Obligation.
Payment Agreement
“Payment Agreement” means a written agreement for the purpose of managing or reducing the City’s exposure to fluctuations in interest rates or for any other interest rate, investment, cash flow, asset or liability managing purposes, entered into either on a current or forward basis by the City and a Qualified Counterparty in connection with, or incidental to, the entering into of any Parity Obligation, that provides for an exchange of payments based on interest rates, ceilings or floors on such payments, options on such payments, or any combination thereof or any similar device.
Payment Agreement Payments
“Payment Agreement Payments” mean the amounts required to be paid periodically by the City to the Qualified Counterparty pursuant to a Payment Agreement.
Payment Agreement Receipts
“Payment Agreement Receipts” mean the amounts required to be paid periodically by the Qualified Counterparty to the City pursuant to a Payment Agreement.
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Purchase Price
“Purchase Price” means the principal amount plus the interest thereon owed by the City to the Authority under the conditions and terms hereof as provided in Section 3.01.
Qualified Counterparty
“Qualified Counterparty” means a party (other than the City) who is the other party to a Payment Agreement and (1) (a) whose senior debt obligations are rated in one of the three (3) highest rating categories of each of the Rating Agencies then rating the Bonds or any Parity Obligations (without regard to any gradations within a rating category), or (b) whose obligations under the Payment Agreement are guaranteed for the entire term of the Payment Agreement by a bond insurer or other institution which has been or whose debt service obligations have been assigned a credit rating in one of the three highest rating categories of each of the Rating Agencies then rating the Bonds or any Parity Obligations (without regard to any gradations within a rating category), and (2) who is otherwise qualified to act as the other party to a Payment Agreement with the City under any applicable laws.
Rating Agencies
“Rating Agencies” mean Moody’s, S&P and Fitch, and their respective successors or assigns, or any other nationally recognized securities rating agency or agencies rating the Bonds at the Request of the City.
RBI
“RBI” means the Bond Buyer Revenue Bond Index or comparable index of long- term municipal obligations chosen by the City, or, if no comparable index can be obtained, eighty percent (80%) of the interest rate on actively traded thirty (30) year United States Treasury obligations.
Rebate Fund
“Rebate Fund” means the fund by that name established pursuant to Section 5.03 of the Trust Agreement.
Refunding Bond Law
“Law” means Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
Request of the City
“Request of the City” means an instrument in writing signed by the Mayor, the City Manager or the Director of Finance of the City, or any other officer of the City duly authorized by the City Council for that purpose.
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Revenue Fund
“Revenue Fund” means the fund by that name established pursuant to Section 5.04 hereof.
Revenues
“Revenues” mean all gross income and revenue received or receivable by the City from the ownership or operation of the Electric System, including all rates and charges received by the City for the Electric Service and the other services and facilities of the Electric System, all proceeds of insurance covering business interruption loss relating to the Electric System and all other income and revenue howsoever derived by the City from the ownership or operation of the Electric System or otherwise arising from the Electric System, including all Payment Agreement Receipts, and all income from the deposit or investment of any money in the Electric Revenue Fund, but excluding (i) proceeds of taxes and (ii) refundable deposits made to establish credit and advances or contributions in aid of construction and line extension fees.
S&P
“S&P” means S&P Global Ratings, a Standard & Poor’s Financial Services LLC business, a corporation duly organized and existing under and by virtue of the laws of the State of New York, and its successors or assigns, except that if such entity shall be dissolved or liquidated or shall no longer perform the services of a municipal securities rating agency, then “S&P” shall be deemed to refer to any other nationally recognized municipal securities rating agency rating Parity Obligations at the Request of the City.
State
“State” means the State of California.
Subordinate Obligations
“Subordinate Obligations” mean obligations of the City authorized and executed by the City under applicable law, the payments under and pursuant to which are payable from Net Revenues, subject and subordinate to the payment of the 2025A Installment Sale Payments hereunder and to the payment of Parity Obligations. Such obligations may be payable from any fund established for the purpose of paying debt service on such Subordinate Obligations.
Tax Certificate
“Tax Certificate” means the Tax Certificate and Agreement concerning certain matters pertaining to the use and investment of proceeds of the Bonds executed and delivered by the Authority and the City on the Delivery Date, including any and all exhibits attached thereto.
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Trust Agreement
“Trust Agreement” means that certain Trust Agreement, dated as of April 1, 2025, by and between the Trustee and the Authority, as originally executed and as it may from time to time be amended or supplemented in accordance with its terms.
Trustee
“Trustee” means U.S. Bank Trust Company, National Association, a national banking association duly organized and existing under the laws of the United States of America, acting in its capacity as trustee under and pursuant to the Trust Agreement, and its successors and assigns as provided in the Trust Agreement.
Variable Interest Rate
“Variable Interest Rate” means any variable interest rate or rates to be paid under any Parity Obligations, the method of computing which variable interest rate shall be as specified in the applicable Parity Obligation, which Parity Obligation shall also specify either (i) the payment period or periods or time or manner of determining such period or periods or time for which each value of such variable interest rate shall remain in effect, and (ii) the time or times based upon which any change in such variable interest rate shall become effective, and which variable interest rate may, without limitation, be based on the interest rate on certain bonds or may be based on interest rate, currency, commodity or other indices.
Variable Interest Rate Parity Obligations
“Variable Interest Rate Parity Obligations” mean, for any period of time, all in accordance with the definition of “Annual Debt Service” set forth in this Section 1.01, any Parity Obligations that bear a Variable Interest Rate during such period, except that (i) Parity Obligations shall not be treated as Variable Interest Rate Parity Obligations if the net economic effect of interest rates on particular payments of the Parity Obligations and interest rates on other payments of the same Parity Obligations, as set forth in such Parity Obligations, or the net economic effect of a Payment Agreement with respect to particular Parity Obligations, in either case, is to produce obligations that bear interest at a fixed interest rate, and (ii) Payments and Parity Obligations with respect to which a Payment Agreement is in force shall be treated as Variable Interest Rate Parity Obligations if the net economic effect of the Payment Agreement is to produce obligations that bear interest at a Variable Interest Rate.
ARTICLE II
PURCHASE OF THE
THE 2025A ELECTRIC SYSTEM PROJECT
SECTION 2.01. Purposes. The purposes of this 2025A Installment Sale Agreement are to provide for the City’s purchase from the Authority of the 2025A Electric System Project. To effect such purposes, the City shall cause the Bonds to be sold and the proceeds of the sale thereof to be deposited and applied in accordance with the Trust Agreement.
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SECTION 2.02. Transfer of 2025A Electric System Project Owned by the City on the Delivery Date. In consideration of the deposit of the proceeds of the sale of the Bonds pursuant to Section 2.11 of the Trust Agreement and the application of such moneys pursuant thereto, the City hereby sells, assigns, and transfers to the Authority, and the Authority hereby purchases from the City, all of the City’s right, title and interest in the 2025A Electric System Project owned by the City on the Delivery Date.
SECTION 2.03. Purchase of 2025A Electric System Project by the City. In consideration of the obligation of the City to pay the Purchase Price as provided in Section 3.01 hereof, the Authority hereby sells, assigns and transfers to the City, and the City hereby purchases from the Authority, all of the Authority’s right, title and interest in the 2025A Electric System Project. On the Delivery Date all right, title and interest in and to each component of the 2025A Electric System Project transferred to the Authority pursuant to Section 2.02 hereof shall vest in the City without action by the City or the Authority. Immediately upon completion of each separate additional component of the 2025A Electric System Project, all right, title and interest in and to each such completed component of the 2025A Electric System Project shall vest in the City without any further action by the City or the Authority.
SECTION 2.04. Additions, Betterments, Extensions and Improvements to the 2025A Electric System Project. The Authority hereby agrees to make additions, betterments, extensions and improvements to the 2025A Electric System Project for the City. In order to implement this provision, the Authority hereby appoints the City as its agent for the purpose of such additions, betterments, extensions and improvements, and the City hereby agrees to enter into such engineering, design and construction contracts and purchase orders as may be necessary, as agent for the Authority, to provide for such additions, betterments, extensions and improvements to the 2025A Electric System Project. The City hereby agrees that as such agent it will cause the acquisition and construction of the 2025A Electric System Project to be diligently completed after the deposit of funds in the Acquisition Fund for such purpose pursuant to Section 2.11 of the Trust Agreement.
Notwithstanding the foregoing, it is hereby expressly understood and agreed that the Authority shall be under no liability of any kind or character whatsoever for the payment of any costs or expenses incurred by the City (whether as agent for the Authority or otherwise) for the acquisition and construction of the 2025A Electric System Project except from moneys in the Acquisition Fund and that all such costs and expenses shall be paid by the City, regardless of whether the funds deposited in the Acquisition Fund are sufficient to cover all such costs.
ARTICLE III
THE 2025A INSTALLMENT SALE PAYMENTS AND PREPAYMENTS
SECTION 3.01. Purchase Price.
(a) As consideration for the sale, assignment and transfer by the Authority to the City of all of the Authority’s right, title and interest in the 2025A Electric System Project pursuant to Section 2.03, the City agrees to pay to the Authority the Purchase Price. The Purchase Price to be paid by the City to the Authority hereunder is the sum of the principal Packet Pg. 188
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amount of the City’s obligation hereunder plus the interest to accrue on the unpaid balance of such principal amount from the date hereof over the term hereof, subject to prepayment as provided in Section 3.03.
(b) The principal amount of the Purchase Price to be paid by the City to the Authority hereunder is ___________________ dollars ($_______) and shall be paid through the payment by the City of the principal component of the 2025A Installment Sale Payments. (c) The interest to accrue on the unpaid balance of such principal amount shall be paid by the City as and shall constitute interest paid on the principal amount of the City’s Purchase Price obligation hereunder and shall be paid by the City through the City’s payment of the interest component of the 2025A Installment Sale Payments. (d) The principal components of the 2025A Installment Sale Payments shall be payable on June 1 in each of the years in the amounts and shall bear interest from the Delivery Date, payable on each Interest Payment Date, at the rates set forth below:
Principal
Component
(June 1)
Principal
Amount
Interest Rate
(per annum)
$ %
SECTION 3.02. Pledge of Net Revenues and Moneys in Electric Revenue Fund; Electric Revenue Fund. Subject to the application thereof of the terms and conditions herein provided, all Net Revenues of the Electric System and all moneys on deposit in the Electric Revenue Fund (as hereinafter defined) are hereby irrevocably pledged to the payment of the 2025A Installment Sale Payments which pledge shall be on a parity with any pledge of Net Revenues or of moneys in the Electric Revenue Fund securing Parity Obligations as to which the provisions of Section 4.01 hereof have been satisfied. This pledge shall constitute a first pledge of and charge and lien upon the Net Revenues of the Electric System and moneys in the Electric Revenue Fund for the payment of amounts due with respect to this 2025A Installment Sale Agreement and all Parity Obligations in accordance with the terms hereof and thereof.
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The general fund of the City is not liable for, and neither the faith and credit nor the taxing power of the City is pledged to, the payment of the 2025A Installment Sale Payments.
In order to carry out and effectuate the obligation of the City contained herein to pay the 2025A Installment Sale Payments, the City agrees and covenants that all Revenues received by it shall be deposited when and as received in the “City of Redding Electric Revenue Fund” (the “Electric Revenue Fund”), which fund has heretofore been established by the City and which fund the City agrees and covenants to maintain separate and apart from other moneys of the City so long as any 2025A Installment Sale Payment remains Outstanding hereunder, and all money on deposit in the Electric Revenue Fund shall be applied and used only as provided herein. The City shall pay all Maintenance and Operation Costs (including amounts reasonably required to be set aside in contingency reserves for Maintenance and Operation Costs the payment of which is not then immediately required) from the Electric Revenue Fund as they become due and payable, and all remaining money on deposit in the Electric Revenue Fund shall be set aside and deposited by the City at the following times:
On or before the fourth Business Day before each date on which a 2025A Installment Sale Payment becomes due and payable under this 2025A Installment Sale Agreement, whether on an Interest Payment Date or upon an acceleration pursuant to Section 6.01, the City shall, from the money in the Electric Revenue Fund, transfer to the Trustee for deposit in the Revenue Fund a sum equal to the 2025A Installment Sale Payments becoming due and payable under this 2025A Installment Sale Agreement on such due date, except that no such deposit need be made to the extent the Trustee then holds money for such purpose in the Revenue Fund available to pay the 2025A Installment Sale Payment becoming due and payable under this 2025A Installment Sale Agreement on such date. The City shall also, from such remaining moneys in the Electric Revenue Fund, pay to the party entitled thereto or transfer or cause to be transferred to any applicable debt service or other payment fund or account for any Parity Obligations, without preference or priority between transfers made pursuant to this sentence and the preceding sentence, and in the event of any insufficiency of such moneys ratably without any discrimination or preference, on the dates specified in the proceedings relating to such Parity Obligations, the sum or sums required to be paid or deposited in such debt service or other payment fund or account with respect to principal, premium, if any, and interest on Parity Obligations (or in the case of Parity Payment Agreements, the net payments due) in accordance with the terms of such Parity Obligations.
After making the foregoing deposits and transfers hereinabove required to be made, the City shall apply any remaining money in the Electric Revenue Fund for any lawful purpose of the City, including for the payment of any Subordinate Obligations in accordance with the instruments authorizing such Subordinate Obligations; provided, however, that no moneys in the Electric Revenue Fund shall be applied to any purpose not related to the expansion of the facilities or business of the Electric System or replacement of facilities thereof, including the payment of any Subordinate Obligations, in any Fiscal Year unless amounts remaining on deposit in the Electric Revenue Fund shall be sufficient to make the remaining transfers hereinabove required to be made in such Fiscal Year with respect to 2025A Installment Sale Payments and Parity Obligations.
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Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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The City shall distribute Net Revenues available for Outstanding 2025A Installment Sale Payments and debt service on all Outstanding Parity Obligations on a pro rata basis without regard to whether each such Parity Obligations has a funded debt service reserve or a surety bond or other similar funding instrument.
SECTION 3.03. Prepayment of 2025A Installment Sale Payments. (a) The City may prepay from any source of available funds, on any date on or after __________ 1, 20__ all or any part of the principal amount of the unpaid 2025A Installment Sale Payments, in such amount and in such order of prepayment as the City may determine upon written direction to the Authority and the Trustee provided not less than forty (40) days (or such lesser number of days as may be acceptable to the Trustee) prior to such prepayment date, at a prepayment price equal to the sum of the principal amount prepaid, plus accrued interest to the date of prepayment, without premium.
(b) Before making any prepayment pursuant to this section, the City shall give written notice to the Authority and the Trustee specifying the date on which the prepayment will be paid and the order thereof, which date shall be not less than forty (40) days (or such lesser number of days as may be acceptable to the Trustee) from the date such notice is given; provided, that notwithstanding any such prepayment, the City shall not be relieved of its obligations hereunder, including specifically its obligations under this article, until the Purchase Price shall have been fully paid (or provision for payment thereof shall have been made pursuant to Article VII).
SECTION 3.04. 2025A Installment Sale Payments Payable on a Parity with Outstanding 2015 Installment Sale Payments, 2017 Bonds and 2018 Bonds. The payment of the 2025A Installment Sale Payments and interest thereon from Net Revenues shall be payable on a parity with the payment of the outstanding 2015 Installment Sale Payments and interest thereon, the principal of and interest on the 2017 Bonds and the principal of and interest on the 2018 Bonds. The obligation of the City to pay the 2025A Installment Sale Payments is absolute and unconditional, and until such time as 2025A Installment Sale Payments have been paid in full (or provision for the payment thereof shall have been made pursuant to the 2025A Installment Sale Agreement), the City will not discontinue or suspend any 2025A Installment Sale Payments required to be paid by it under the 2025A Installment Sale Agreement when due, whether or not the Electric System or any part thereof is operating or operable, or its use is suspended, interfered with, reduced, curtailed or terminated in whole or in part, and such payments will not be subject to reduction whether by offset or otherwise and will not be conditional upon the performance or nonperformance by any party to any agreement for any cause whatsoever.
ARTICLE IV
ADDITIONAL OBLIGATIONS
SECTION 4.01. Conditions for the Execution of Parity Obligations. The City shall not incur any obligation the payment of which is payable from and secured by a lien and charge on the Net Revenues prior to the lien and charge on Net Revenues securing the 2025A Installment Sale Payments under this 2025A Installment Sale Agreement. The City may at any time execute and deliver any Parity Obligation, the payment of which is payable from and Packet Pg. 191
Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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secured by a lien and charge on the Net Revenues on a parity with the lien and charge on Net Revenues securing the 2025A Installment Sale Payments due under this 2025A Installment Sale Agreement, provided:
(a) Either -
(1) during any twelve (12) consecutive calendar months out of the immediately preceding eighteen (18) calendar month period, the Adjusted Annual Net Revenues were at least equal to one hundred ten percent (110%) of the Maximum Annual Debt Service for all Outstanding 2025A Installment Sale Payments and all Outstanding Parity Obligations plus the Parity Obligation proposed to be executed; or (2) as evidenced by a Certificate of the City, the projected Adjusted Annual Net Revenues during the succeeding first complete Fiscal Year following issuance of such Parity Obligation in which interest is not capitalized in whole or in part from the proceeds of Parity Obligations, is at least equal to one hundred ten percent (110%) of the Maximum Annual Debt Service for all Outstanding 2025A Installment Sale Payments and all Outstanding Parity Obligations plus the Parity Obligation proposed to be executed;
(b) If the Parity Obligation proposed to be executed is not a Parity Payment Agreement, the proceeds of such Parity Obligation proposed to be executed shall be used solely to finance or refinance (including reimbursement to the City of amounts advanced for such costs) one or more additions, betterments or improvement to the Electric System as designated by the City and to pay any incidental costs and expenses related thereto (including the costs of issuance, execution or delivery of such proposed Parity Obligation); (c) With respect to any Parity Obligation to be executed in connection with a Payment Agreement, there shall have been delivered to the City evidence that the incurrence of such Parity Obligation and Payment Agreement will not in and of itself cause a downgrade of the rating issued by the Rating Agencies then rating the Bonds or any Parity Obligation; (d) There shall have been delivered to the City an Opinion of Counsel substantially to the effect that (1) the City has the right and power under applicable law to execute and deliver the Parity Obligation, and the Parity Obligation has been duly and lawfully executed and delivered by the City, is in full force and effect and is a valid and binding special obligation of the City and enforceable in accordance with its terms (except as enforcement may be limited by bankruptcy, moratorium, insolvency, reorganization, fraudulent conveyance and other similar laws relating to the enforcement of creditors’ rights), and (2) such Parity Obligation has been duly and validly authorized and issued in accordance herewith; and (e) If required by the terms of such Parity Obligation, a separate reserve has been established for such Parity Obligation and that provision has been made to fund such reserve. (f) No Event of Default (or any event which would become an Event of Default once all notice or grace periods have passed) exists unless such Event of Default or default shall be cured upon such issuance.
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Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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Notwithstanding the foregoing provisions, neither clause (a) nor clause (b) above shall limit the ability of the City to execute any Parity Obligations at any time to refund any Outstanding Payments and Outstanding Parity Obligations which results in a net present value savings to the City, inclusive of all costs of such refunding.
SECTION 4.02. Subordinate Obligations. The City may incur Subordinate Obligations without meeting any of the tests set forth in Section 4.01.
ARTICLE V
COVENANTS OF THE CITY
SECTION 5.01. Compliance with 2025A Installment Sale Agreement and Trust Agreement. The City will punctually pay the 2025A Installment Sale Payments and interest thereon in strict conformity with the terms hereof, and will faithfully observe and perform all the agreements, conditions, covenants and terms contained herein required to be observed and performed by it, and will not terminate this 2025A Installment Sale Agreement for any cause including, without limiting the generality of the foregoing, any acts or circumstances that may constitute failure of consideration, destruction of or damage to the 2025A Electric System Project or the Electric System, commercial frustration of purpose, any change in the tax or other laws of the United States of America or of the State of California or any political subdivision of either or any failure of the Authority to observe or perform any agreement, condition, covenant or term contained herein required to be observed and performed by it, whether express or implied, or any duty, liability or obligation arising out of or connected herewith or the insolvency, or deemed insolvency, or bankruptcy or liquidation of the Authority or any force majeure, including Acts of God, tempest, storm, earthquake, war, rebellion, riot, civil disorder, acts of public enemies, blockade or embargo, strikes, industrial disputes, lockouts, lack of transportation facilities, fire, explosion, or acts or regulations of governmental authorities.
The City will faithfully observe and perform all the agreements, conditions, covenants and terms contained in the Trust Agreement required to be observed and performed by it, and it is expressly understood and agreed by and among the parties to this 2025A Installment Sale Agreement and the Trust Agreement that each of the agreements, conditions, covenants and terms contained in each such agreement is an essential and material term of the obligation of the City to pay the Purchase Price pursuant to, and in accordance with, and as authorized under law and this 2025A Installment Sale Agreement.
SECTION 5.02. Against Encumbrances. The City will pay or cause to be paid when due all sums of money that may become due or purporting to be due for any labor, services, materials, supplies or equipment furnished, or alleged to have been furnished, to or for the City in, upon, about or relating to the Electric System and will keep the Electric System free of any and all liens against any portion of the Electric System. In the event any such lien attaches to or is filed against any portion of the Electric System, the City will cause each such lien to be fully discharged and released at the time the performance of any obligation secured by any such lien matures or becomes due, except that if the City desires to contest any such lien it may do so. If any such lien shall be reduced to final judgment and such judgment or any process as may be issued for the enforcement thereof is not promptly stayed, or if so stayed and Packet Pg. 193
Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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such stay thereafter expires, the City will forthwith pay or cause to be paid and discharged such judgment. The City will, to the maximum extent permitted by law, indemnify and hold the Authority and the Trustee harmless from, and defend each of them against, any claim, demand, loss, damage, liability or expense (including attorneys’ fees) as a result of any such lien or claim of lien against any portion of the Electric System.
The City will not create or give, or permit the creation or giving of, any priority for payment, mortgage, lien, pledge or encumbrance upon any of the Net Electric System Revenues or other funds held hereunder that are prior or equal to the payment of the 2025A Installment Sale Payments, except as provided in Section 4.01.
SECTION 5.03. Sale or Other Disposition of Property. The City will not sell, transfer or otherwise dispose of any of the works, plant, properties, facilities or other part or rights of the Electric System or any real or personal property comprising a part of the Electric System if such sale, transfer or disposition would cause the City to be unable to satisfy the requirements of Section 5.12 hereof.
SECTION 5.04. Tax Covenants. The City hereby covenants it shall not take any action, or fail to take any action, if any such action or failure to take action would adversely affect the exclusion from gross income of interest on the 2025A Installment Sale Payments under Section 103 of the Code. Without limiting the generality of the foregoing, the City shall comply with the requirements of the Tax Certificate, which is incorporated herein as if fully set forth herein.
(a) In the event that at any time the City is of the opinion that for purposes of this Section it is necessary or helpful to restrict or limit the yield on the investment of any moneys in any of the funds or accounts held by the Trustee pursuant to the Trust Agreement, the City shall so instruct the Trustee in writing, and cause the Trustee to take such action as may be necessary in accordance with such instructions.
(b) Notwithstanding any provisions of this Section, if the City shall provide to the Trustee an Opinion of Counsel to the effect that any specified action required under this Section is no longer required or that some further or different action is required to maintain the exclusion from federal income tax of interest on the 2025A Installment Sale Payments under Section 103 of the Code, the City and the Trustee may conclusively rely on such opinion in complying with the requirements of this Section and of the Tax Certificate, and the covenants hereunder shall be deemed to be modified to that extent.
(c) The City shall establish and maintain a fund designated the Rebate Fund separate from any other fund established and maintained under the Trust Agreement or this 2025A Installment Sale Agreement. The City shall deposit in the Rebate Fund the Rebate Requirement as provided in the Tax Certificate. Subject to the other provisions of Section 5.04 of this 2025A Installment Sale Agreement and Section 4.03 of the Trust Agreement, moneys held in the Rebate Fund are hereby pledged to secure payments to the United States government, and the Authority and the Owners shall have no rights in or claim to such moneys.
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Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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(d) The covenants in this Section shall survive payment in full or discharge of the Bonds and the 2025A Installment Sale Payments.
SECTION 5.05. Prompt Acquisition and Construction of the 2025A Electric System Project. The City will take all necessary and appropriate steps to acquire and construct the 2025A Electric System Project, as agent of the Authority, with all practicable dispatch and in an expeditious manner and in conformity with law so as to complete the same as soon as possible.
SECTION 5.06. Maintenance and Operation of the Electric System; Budgets.
The City will maintain and preserve the Electric System in good repair and working order at all times and will operate the Electric System in an efficient and economical manner and will pay all Maintenance and Operation Costs as they become due and payable.
Not later than September 1 of each year, the City will adopt and, if requested, make available to the Authority and the Trustee, a budget approved by the City Council of the City setting forth the estimated Maintenance and Operation Costs and the estimated payments for Parity Obligations and Subordinate Obligations for the then current Fiscal Year; provided, that any such budget may be amended at any time during any Fiscal Year and, if requested, such amended budget shall be made available to the Authority or Trustee. The Trustee shall have no duty to review such budget.
SECTION 5.07. Compliance with Contracts. The City will comply with, keep, observe and perform all agreements, conditions, covenants and terms, express or implied, required to be performed by it contained in all contracts for the use of the Electric System and all other contracts affecting or involving the Electric System to the extent that the City is a party thereto.
SECTION 5.08. Insurance. The City will procure and maintain such insurance relating to the Electric System which it shall deem advisable or necessary to protect its interests and the interests of the Authority and the Trustee, which insurance shall afford protection in such amounts and against such risks as are usually covered in connection with municipal electric utility systems similar to the Electric System; provided, that any such insurance may be maintained under a self-insurance program so long as such self-insurance is maintained in the amounts and manner usually maintained in connection with municipal electric utility systems similar to the Electric System and is, in the opinion of an Insurance Consultant, financially sound. All policies of insurance required to be maintained herein shall provide that the Authority and the Trustee shall be given thirty (30) days’ written notice of any intended cancellation thereof or reduction of coverage provided thereby. The Trustee is not responsible for the sufficiency or adequacy of any insurance provided hereunder.
SECTION 5.09. Accounting Records and Financial Statements.
The City will keep appropriate accounting records in which complete and correct entries shall be made of all transactions relating to the Electric System, which records shall be available for inspection by the Authority and the Trustee (who shall have no duty to inspect) at reasonable hours and under reasonable conditions.
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SECTION 5.10. Protection of Security and Rights of the Authority and the Trustee. The City will preserve and protect the security hereof and the rights of the Authority and the Trustee to the 2025A Installment Sale Payments hereunder and will warrant and defend such rights against all claims and demands of all persons.
SECTION 5.11. Payment of Taxes and Compliance with Governmental Regulations. The City will pay and discharge all taxes, assessments and other governmental charges which may hereafter be lawfully imposed upon the Electric System or any part thereof when the same shall become due. The City will duly observe and conform with all valid regulations and requirements of any governmental authority relative to the operation of the Electric System or any part thereof, but the City shall not be required to comply with any regulations or requirements so long as the validity or application thereof shall be contested in good faith.
SECTION 5.12. Amount of Rates and Charges. The City will at all times fix, prescribe and collect rates and charges for the services, facilities and electricity of the Electric System during each Fiscal Year which will be at least sufficient to yield: (a) Adjusted Annual Revenues for such Fiscal Year at least equal to the sum of the following for such Fiscal Year:
(i) Maintenance and Operation Costs; (ii) Adjusted Annual Debt Service, and (iii) all other payments required to meet any other obligations of the City which are charges, liens or encumbrances upon or payable from the Electric Revenue Fund, including all amounts owing under Subordinate Obligations; (b) Adjusted Annual Net Revenues for such Fiscal Year equal to at least one hundred ten percent (110%) of Adjusted Annual Debt Service for such Fiscal Year.
The City may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but shall not reduce the rates and charges then in effect unless the Adjusted Annual Revenues and the Adjusted Annual Net Revenues from such reduced rates and charges will at all times be sufficient to meet the requirements of this Section.
SECTION 5.13. Collection of Rates, Fees and Charges. The City will have in effect at all times rules and regulations requiring each consumer or customer located on any premises connected with the Electric System to pay the rates, fees and charges applicable to the Electric Service to such premises and providing for the billing thereof and for a due date and a delinquency date for each bill. The City will not permit any part of the Electric System or any facility thereof to be used or taken advantage of free of charge by any corporation, firm or person, or by any public agency (including the United States of America, the State of California and any city, county, district, political subdivision, public corporation or agency of any thereof); provided, that the City may without charge use the facilities of the Electric System and the Electric Service. Nothing herein shall prevent the City, in its sole and exclusive discretion, from permitting other parties from selling electricity to retail customers within the service area of the Electric System; provided, however, that permitting such sales shall not relieve the City of its obligations hereunder.
SECTION 5.14. Further Assurances. The City will adopt, deliver, execute and make any and all further assurances, instruments and resolutions as may be reasonably necessary or proper to carry out the intention or to facilitate the performance hereof and for the better assuring and confirming unto the Authority of the rights and benefits provided to it herein.
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Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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SECTION 5.15. Continuing Disclosure. The City hereby covenants and agrees that it will comply with and carry out all of its obligations under the Continuing Disclosure Agreement to be delivered by the City in connection with the execution and delivery of the Bonds. Notwithstanding any other provision hereof, failure of the City to comply with the Continuing Disclosure Agreement shall not be considered an Event of Default hereunder; provided, however, that any beneficial owner of Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City or the Trustee, as the case may be, to comply with its obligations in this section and the Continuing Disclosure Agreement.
ARTICLE VI
EVENTS OF DEFAULT AND REMEDIES
SECTION 6.01. Events of Default and Acceleration of Principal. If one or more of the following Events of Default shall happen, that is to say:
(a) if default shall be made in the due and punctual payment of any 2025A Installment Sale Payment or interest thereon or of any Parity Obligation when and as the same shall become due and payable;
(b) if default shall be made by the City in the performance of any of the agreements or covenants contained herein required to be performed by it, other than as set forth in (a) above, and such default shall have continued for a period of thirty (30) days after the City shall have been given notice in writing of such default by the Authority or the Trustee; (c) if default shall be made by the City in the performance of any of the agreements or covenants contained in any Parity Obligation required to be performed by it, other than as set forth in (a) above, and such default shall have continued after any notice and grace period provided by such Parity Obligation; or
(d) if the City shall file a petition or answer seeking arrangement or reorganization under the federal bankruptcy laws or any other applicable law of the United States of America or any state therein, or if a court of competent jurisdiction shall approve a petition filed with or without the consent of the City seeking arrangement or reorganization under the federal bankruptcy laws or any other applicable law of the United States of America or any state therein, or if under the provisions of any other law for the relief or aid of debtors any court of competent jurisdiction shall assume custody or control of the City or of the whole or any substantial part of its property;
then and in each and every such case during the continuance of such Event of Default specified in clause (a) or (d) above, the Trustee shall, and for any other such Event of Default the Trustee, may, by notice in writing to the City, declare the entire amount of the unpaid principal amount of the 2025A Installment Sale Payments and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, anything contained herein to the contrary notwithstanding. This Section is subject to the condition, however, that if at any time after the entire amount of the unpaid principal amount Packet Pg. 197
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of the 2025A Installment Sale Payments and the accrued interest thereon shall have been so declared due and payable and before any judgment or decree for the payment of the money due shall have been obtained or entered, the City shall deposit in the Revenue Fund a sum sufficient to pay the unpaid amount of the 2025A Installment Sale Payments due otherwise then as a result of such declaration and in the applicable Revenue Fund(s) the unpaid principal amount of any payments due under any Parity Obligation referred to in clause (a) above due and payable prior to such declaration and the accrued interest thereon, with interest on such overdue installments at the rate or rates applicable to such unpaid 2025A Installment Sale Payments if paid in accordance with their terms and on the Parity Obligations in accordance with their terms, and the City shall have paid the reasonable expenses of the Authority, the Trustee and any fiduciaries for Parity Obligations resulting from such declaration, and any and all other defaults known to the Trustee (other than in the payment of the entire amount of the unpaid 2025A Installment Sale Payments due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Trustee or provision deemed by the Trustee to be adequate shall have been made therefor, then and in every such case the Trustee, by written notice to the City, may rescind and annul such declaration and its consequences; but no such rescission and annulment shall extend to or shall affect any subsequent default or shall impair or exhaust any right or power consequent thereon.
SECTION 6.02. Application of Net Revenues upon Acceleration. All Net Revenues upon the date of the declaration of acceleration by the Trustee as provided in Section 6.01 above and all Net Revenues thereafter received shall be applied in the following order:
First, to the payment of the costs and expenses of the Trustee, if any, in carrying out the provisions of this Article, including reasonable compensation to its agents, accountants and counsel and including any indemnification expenses; Second, to the payment of the interest on the 2025A Installment Sale Payments and interest then due and payable on the entire principal amount of the unpaid Parity Obligations, and the unpaid principal components of the 2025A Installment Sale Payments and the principal amount of the Parity Obligations which has become due and payable, whether on the original due date or upon acceleration, with interest on the overdue principal amount of the 2025A Installment Sale Payments at the rate or rates applicable to such 2025A Installment Sale Payments and the principal and interest amounts of the unpaid Parity Obligations at the rate or rates of interest then applicable to such Parity Obligations, and, if the amount available shall not be sufficient to pay in full all the amounts due with respect to the 2025A Installment Sale Payments and the Parity Obligations, together with such interest on the 2025A Installment Sale Payments and interest on Parity Obligations, then to the payment thereof ratably, according to the principal and interest due, without any discrimination or preference.
Net Revenues may also be applied to make payments required under any Parity Payment Agreement on a parity with the payments under paragraph Second above, to the extent and in the manner provided by the terms of such Parity Payment Agreement.
SECTION 6.03. Other Remedies. The Trustee shall have the right -- Packet Pg. 198
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(a) by mandamus or other action or proceeding or suit at law or in equity to enforce its rights against the City or any councilmember, officer or employee thereof, and to compel the City or any such councilmember, officer or employee to perform and carry out its or his duties under law and the agreements and covenants required to be performed by it or him contained herein;
(b) by suit in equity to enjoin any acts or things which are unlawful or violate the rights of the Authority or the Trustee; or
(c) by suit in equity upon the happening of an Event of Default to require the City and its council members, officers and employees to account as the trustee of an express trust.
SECTION 6.04. Non-Waiver. Nothing in this article or in any other provision hereof shall affect or impair the obligation of the City, which is absolute and unconditional, to pay the 2025A Installment Sale Payments and the interest thereon from the Net Revenues to the Trustee at the respective due dates or upon prepayment, or shall affect or impair the right of the Trustee, which is also absolute and unconditional, to institute suit to enforce such payment by virtue of the contract embodied herein.
A waiver of any default or breach of duty or contract by the Trustee shall not affect any subsequent default or breach of duty or contract or impair any rights or remedies on any such subsequent default or breach of duty or contract. No delay or omission by the Trustee to exercise any right or remedy accruing upon any default or breach of duty or contract shall impair any such right or remedy or shall be construed to be a waiver of any such default or breach of duty or contract or an acquiescence therein, and every right or remedy conferred upon the Trustee by law or by this article may be enforced and exercised from time to time and as often as shall be deemed expedient by the Trustee.
If any action, proceeding or suit to enforce any right or exercise any remedy is abandoned or determined adversely to the Trustee, the Authority and the City and the Trustee shall be restored to their former positions, rights and remedies as if such action, proceeding or suit had not been brought or taken.
SECTION 6.05. Remedies Not Exclusive. No remedy herein conferred upon or reserved to the Trustee is intended to be exclusive of any other remedy, and each such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing in law or in equity or by statute or otherwise and may be exercised without exhausting and without regard to any other remedy conferred by law.
ARTICLE VII
DISCHARGE OF OBLIGATIONS
SECTION 7.01. Discharge of Obligations.
(a) If the City shall pay or cause to be paid all the 2025A Installment Sale Payments together with accrued interest thereon at the times and in the manner provided herein, Packet Pg. 199
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the right, title and interest of the Authority herein and the obligations of the City hereunder shall thereupon cease, terminate, become void and be completely discharged and satisfied. (b) Any unpaid principal component of the 2025A Installment Sale Payments shall on its payment date or date of prepayment be deemed to have been paid within the meaning of and with the effect expressed in subsection (a) of this section if the City makes payment of such 2025A Installment Sale Payments together with accrued interest thereon in the manner provided herein.
(c) All or any portion of unpaid principal components of the 2025A Installment Sale Payments shall, prior to their payment dates or dates of prepayment, be deemed to have been paid within the meaning of and with the effect expressed in subsection (a) of this section if (i) notice is provided by the City to the Trustee as required by the Trust Agreement, (ii) there shall have been deposited with the Trustee either money in an amount which shall be sufficient, or Defeasance Securities which are not subject to redemption prior to maturity (including any such Defeasance Securities issued or held in book entry form), the interest on and principal of which when paid will provide money which, together with money, if any, deposited with the Trustee, shall be sufficient (as evidenced by a report of an Independent Certified Public Accountant regarding such sufficiency) to pay when due the principal components of such 2025A Installment Sale Payments or such portions thereof on and prior to their payment dates or their dates of prepayment, as the case may be, together with accrued interest thereon, (iii) an opinion of nationally recognized bond counsel is filed with the Trustee to the effect that such action will not cause the interest on the Bonds to be includable in gross income under the Code for federal income tax purposes, (iv) an opinion of nationally recognized bond counsel to the effect that the Bonds are no longer “Outstanding” under the Trust Agreement and (v) an escrow agreement. Each such report and opinion shall be addressed to the City, the Trustee. (d) After the payment of all 2025A Installment Sale Payments together with accrued interest thereon as provided in this section, and payment of all fees and expenses of the Trustee, the Trustee, upon request of the City, shall cause an accounting for such period or periods as may be requested by the City to be prepared and filed with the City and the Authority and shall execute and deliver to the City and the Authority all such instruments as may be necessary or desirable to evidence such total discharge and satisfaction of the 2025A Installment Sale Agreement, and the Trustee shall pay over and deliver to the City, as an overpayment of the 2025A Installment Sale Payments, all such money or investments held by it pursuant hereto other than such money and such investments as are required for (i) the payment or prepayment of the 2025A Installment Sale Payments, which money and investments shall continue to be held by the Trustee in trust for the payment of the 2025A Installment Sale Payments and accrued interest thereon and shall be applied by the Trustee pursuant to the Trust Agreement and (ii) the fees and expenses of the Trustee, which money and investments shall be paid over to the Trustee.
ARTICLE VIII
MISCELLANEOUS
SECTION 8.01. Liability of the City Limited to Net Revenues.
Notwithstanding anything contained herein, the City shall not be required to advance any Packet Pg. 200
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moneys derived from any source of income other than the Net Revenues and moneys in the Electric Revenue Fund for the payment of the 2025A Installment Sale Payments or the interest thereon or for the performance of any agreements or covenants required to be performed by it contained herein. The City may, however, advance moneys for any such purpose so long as such moneys are derived from a source legally available for such purpose and may be legally used by the City for such purpose.
The obligation of the City to make the 2025A Installment Sale Payments and the interest thereon is a special obligation of the City payable solely from the Net Revenues and moneys in the Electric Revenue Fund as provided herein, and does not constitute a debt of the City or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limitation or restriction. The general fund of the City is not liable, and neither the faith and credit nor the taxing power of the City is pledged, for the payment of the 2025A Installment Sale Payments or the interest thereon or the performance or satisfaction of any other obligations of the City hereunder.
SECTION 8.02. Amendments. The Authority and the City shall not supplement, amend, modify or terminate any of the terms of this 2025A Installment Sale Agreement unless the conditions set forth in Section 10.15 of the Trust Agreement have been satisfied.
SECTION 8.03. Assignment of 2025A Installment Sale Agreement. The City hereby acknowledges that the Authority, for good and valuable consideration, has transferred, assigned and sent over to the Trustee, pursuant to the provisions of the Trust Agreement, all of the 2025A Installment Sale Payments and any and all rights and privileges it has hereunder and references to the Authority herein (except as to the obligations of the Authority hereunder it being understood that the Trustee shall not assume any responsibility for any duties or covenants or warranties of the Authority hereunder) shall be construed to be references to the Trustee.
SECTION 8.04. Benefits of 2025A Installment Sale Agreement Limited to Parties. Nothing contained herein, expressed or implied, is intended to give to any person other than the Authority, the City, the Trustee any right, remedy or claim under or pursuant hereto, and any agreement or covenant required herein to be performed by or on behalf of the Authority, the City, the Trustee shall be for the sole and exclusive benefit of the other party.
SECTION 8.05. Successor Is Deemed Included in all References to Predecessor. Whenever the Authority or the City or the Trustee is named or referred to herein, such reference shall be deemed to include the successor to the powers, duties and functions that are presently vested in the Authority or the City or the Trustee, and all agreements and covenants required hereby to be performed by or on behalf of the Authority or the City or the Trustee shall bind and inure to the benefit of the respective successors thereof whether so expressed or not.
SECTION 8.06. Waiver of Personal Liability. No councilmember, officer or employee of the City shall be individually or personally liable for the payment of the 2025A Installment Sale Payments, but nothing contained herein shall relieve any councilmember, officer or employee of the City from the performance of any official duty provided by any applicable provisions of law or hereby.
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SECTION 8.07. Article and Section Headings, Gender and References. The headings or titles of the several articles and sections hereof and the table of contents appended hereto shall be solely for convenience of reference and shall not affect the meaning, construction or effect hereof, and words of any gender shall be deemed and construed to include all genders.
All references herein to “Articles,” “Sections,” “Exhibits” and other subdivisions or clauses are to the corresponding articles, sections, exhibits, subdivisions or clauses hereof; and the words “hereby,” “herein,” “hereof,” “hereto,” “herewith” and other words of similar import refer to this 2025A Installment Sale Agreement as a whole and not to any particular article, section, exhibit, subdivision or clause hereof.
SECTION 8.08. Partial Invalidity. If any one or more of the agreements or covenants or portions thereof required hereby to be performed by or on the part of the Authority or the City shall be contrary to law, then such agreement or agreements, such covenant or covenants or such portions thereof shall be null and void and shall be deemed separable from the remaining agreements and covenants or portions thereof and shall in no way affect the validity hereof. The Authority and the City hereby declare that they would have executed this 2025A Installment Sale Agreement, and each and every other article, section, paragraph, subdivision, sentence, clause and phrase hereof irrespective of the fact that any one or more articles, sections, paragraphs, subdivisions, sentences, clauses or phrases hereof or the application thereof to any person or circumstance may be held to be unconstitutional, unenforceable or invalid.
SECTION 8.09. Net Contract. This 2025A Installment Sale Agreement shall be deemed and construed to be a net contract, and the City shall pay absolutely net during the term hereof the 2025A Installment Sale Payments and all other payments required hereunder, free of any deductions and without abatement, diminution or set-off whatsoever.
SECTION 8.10. California Law. This 2025A Installment Sale Agreement shall be construed and governed in accordance with the laws of the State of California.
SECTION 8.11. Indemnification. The City shall, to the full extent then permitted by law, indemnify, protect, hold harmless, save and keep harmless the Authority and its directors, officers and employees and the Trustee and their directors, officers and employees from and against any and all liability, obligations, losses, claims and damages whatsoever, regardless of the cause thereof, and expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest arising out of or as the result of the entering into of this 2025A Installment Sale Agreement, the acquisition, construction, installation and use of the 2025A Electric System Project and each portion thereof or any accident in connection with the operation, use, condition or possession of the 2025A Electric System Project or any portion thereof resulting in damage to property or injury to or death to any person including, without limitation, any claim alleging latent and other defects, whether or not discoverable by the City or the Authority; any claim for patent, trademark or copyright infringement; and any claim arising out of strict liability in tort. The indemnification arising under this section shall continue in full force and effect notwithstanding the full payment of all obligations hereunder or the termination hereof for any reason. The City agrees not to withhold or abate any portion of the payments required pursuant hereto by reason of any defects, malfunctions, breakdowns or infirmities of the 2025A Electric System Project. The City and the Packet Pg. 202
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Authority mutually agree to promptly give notice to each other of any claim or liability hereby indemnified against following either’s learning thereof.
SECTION 8.12. Funds. Any fund required to be established and maintained herein by the City may be established and maintained in the accounting records of the City either as an account or a fund, and may, for the purpose of such accounting records, any audits thereof and any reports or statements with respect thereto, be treated either as an account or a fund; but all such records with respect to any such fund shall at all times be maintained in accordance with sound accounting practice and with due regard for the protection of the security of the Bonds and the rights of the owners thereof.
SECTION 8.13. Notices. All written notices to be given hereunder shall be given by mail to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other party in writing from time to time, namely:
If to the City:
City of Redding
777 Cypress Avenue
Redding, CA 96001
Attention: Director of Finance
If to the Authority:
Redding Joint Powers Financing Authority
777 Cypress Avenue
Redding, CA 96001
Attention: Executive Director
Copies of all such written notices shall be given by mail to the Trustee at its addresses set forth below, or at such other address as the Trustee may provide to the Authority and the City in writing from time to time, namely:
U.S. Bank Trust Company, National Association
One California Street, Suite 1000
San Francisco, CA 94111
Attention: Global Corporate Trust Services
Unless otherwise requested by the City, the Authority or the Trustee, any notice required to be given hereunder may be given through means of telecopy, telegraph, telegram, telex, facsimile transmission, e-mail or other similar electronic means of communication confirmed by writing or written transmission.
SECTION 8.14. Effective Date. This 2025A Installment Sale Agreement shall become effective upon its execution and delivery, and shall terminate when the Purchase Price shall have been fully paid (or provision for the payment thereof shall have been made pursuant to Article VII).
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SECTION 8.15. Execution in Counterparts. This 2025A Installment Sale Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument.
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Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
(Signature Page to 2025A Installment Sale Agreement)
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IN WITNESS WHEREOF, the parties hereto have executed this 2025A Installment Sale Agreement by their officers thereunto duly authorized.
CITY OF REDDING
By
City Manager
REDDING JOINT POWERS FINANCING
AUTHORITY
By
Executive Director
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Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Exhibit A
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EXHIBIT A
2025A ELECTRIC SYSTEM PROJECT
The 2025A Electric System Project consists of the following additions, betterments, extensions and improvements to the electric utility system of the City of Redding (“City”):
• Overhead/Underground Infrastructure Enhancements/Modernization • Substation Security Improvements
• Redding Power Plant Maintenance & Operations Building • Transmission & Distribution Facility Enhancements/Upgrades • Back-up Power Control Center Relocation and Enhancements • Geographic Information System Utility Network Upgrade/Software Replacement • Major Maintenance to Redding Power Plant
• General System Improvements
in each case as may be specified by the City, including costs reimbursable to the City, and all reports, surveys and feasibility studies relating to such project, and with such additions, substitutions and deletions as shall be specified in a Certificate of the City stating that such additions, substitutions or deletions constitute improvements to the Electric System,
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Attachment: Installment Sale Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU) Norton Rose Fulbright US LLP draft 3/4/25
Error! Unknown document property name. 1
$[PAR AMOUNT]
Redding Joint Powers Financing Authority
Electric System Revenue Bonds, 2025 Series A
___________________________
PURCHASE CONTRACT
___________________________
[_____], 2025
Redding Joint Powers Financing Authority
Redding, California
City of Redding, California
Redding, California
Ladies and Gentlemen:
The undersigned, J.P. Morgan Securities LLC (the “Underwriter”), hereby offers to enter into this Purchase Contract (the “Purchase Contract”) with the Redding Joint Powers Financing Authority (the “Authority”) and the City of Redding (the “City”), which, upon the acceptance of this offer by the Authority and the City, will be binding upon the Authority, the City and the Underwriter. This offer is made subject to written acceptance by the Authority and the City prior to 11:59 P.M., California time, on the date hereof. If this offer is not so accepted, this offer will be subject to withdrawal by the Underwriter upon notice delivered to the Authority and the City at any time prior to acceptance by the Authority and the City. Upon acceptance, this Purchase Contract shall be in full force and effect in accordance with its terms and shall be binding upon the Authority, the City and the Underwriter. All capitalized terms used herein and not otherwise defined herein shall have the respective meanings ascribed thereto in the Official Statement (as defined herein).
1. Purchase, Sale and Delivery of the Bonds.
(a) Subject to the terms and conditions, and in reliance upon the representations, warranties and agreements set forth herein, the Underwriter hereby agree s to purchase and the Authority agrees to sell and deliver to the Underwriter all (but not less than a ll) of the $ [PAR AMOUNT] Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2025 Series A (the “Bonds”). The Bonds shall be dated the date of delivery thereof and shall mature on such dates and shall bear interest at such rates set forth in Schedule I attached hereto. Interest on the Bonds shall be payable semiannually on June 1 and December 1 of each year, commencing June 1, 2025. The purchase price for the Bonds shall be $ [______] (consisting of the aggregate principal amount of th e Bonds plus $[______] of [net] original issue premium, less $[______] of Underwriter’s discount). (b) The Bonds shall be issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, consisting of Article 4, Chapter 5, Division 7, Title 1 of the Government Code of the State of California (commencing with Section 6584) (the “Bond Law”), and a Trust Agre ement, dated as of Packet Pg. 207
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
2 April 1, 2025 (the “Trust Agreement”), by and between the Authority and U.S. Bank Trust Company National Association, as trustee (the “Trustee”), substantially in the form previously submitted to the Underwriter with only such changes th erein as shall be agreed upon by the Authority and the Underwriter.
The Bonds shall be substantially in the form described in, and shall be issued and secured under the provisions of, the Trust Agreement. The Bonds shall be secured by a pledge, charge and lien upon Revenues which consist primarily of certain installment payments (the “2025A Installment Sale Payments”) to be made by the City to the Authority pursuant to an 2025A Installment Sale Agreement, dated as of April 1, 2025 (the “2025A Installment Sale Agreement”), by and between the City and the Authority.
The proceeds of the Bonds will be used to (i) finance the costs of certain capital improvements of the Electric System of the City; and (ii) pay costs of issuance of the Bonds.
The City will undertake, pursuant to a Continuing Disclosure Agreement relating to the Bonds (the “Continuing Disclosure Agreement ”), to provide certain annual financial information and operating data relating to the Electric System and notices of the occu rrence of certain events. A description of this undertaking and the proposed form of Continuing Disclosure Agreement are set forth in the Preliminary Official Statement (as defined herein) and will be set forth in the Official Statement (as defined herein).
The Trust Agreement, the 2025A Installment Sale Agreement , the Continuing Disclosure Agreement and this Purchase Contract are herein referred to as the “Financing Documents.” (c) At 8:00 A.M., California time, on [_____], 2025, or at such other time or on such other date as mutually agreed upon by the Authority and the Underwriter (such time and date herein referred to as the “Closing Date”), the Authority will, subject to the terms and conditions hereof, sell and deliver, or c ause to be delivered, the Bonds to the Underwriter, in definitive form, duly executed and authenticated, together with the other documents mentioned herein, and subject to the terms and conditions hereof, the Underwriter will accept such delivery and pay t he purchase price of the Bonds as set forth in subparagraph (a) above in immediately available funds (such delivery and payment being herein referred to as the “Closing”) to the order of the Trustee. Sale, delivery and payment as aforesaid shall be made a t the offices of Orrick, Herrington & Sutcliffe LLP (“Bond Counsel”), San Francisco, California, or such other place as shall have been mutually agreed upon by the Authority and the Underwriter, except that the Bonds shall be delivered through the Trustee via the F.A.S.T. delivery book-entry system of The Depository Trust Company ( “DTC”) in New York, New York, or at such other place as shall have been mutually agreed upon by the Authority and the Underwriter, in fully registered book-entry eligible form (which may be typewritten) and registered in the name of Cede & Co. as nominee of DTC.
2. Offering; Determination of Issue Price.
(a) The Underwriter agrees to make a bona fide public offering of all of the Bonds at prices not in excess of the initial public offerin g prices or at yields not lower than the initial public offering yields set forth in the Official Statement. The Underwriter reserves the right to change such initial offering prices or yields from time to time after such offering as they shall deem neces sary in connection with the marketing of the Bonds. Except as set forth in subsection (d) below, the Packet Pg. 208
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3 Underwriter reserves the right to change such initial offering prices after such offering as they shall deem necessary in connection with the marketing of the Bonds. (b) The Underwriter agrees to assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at Closing an "issue price" or similar certificate, together with the supporting pricing wires or equivalent communi cations, substantially in the form attached hereto as Exhibit E, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Representative, the City and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of Bonds. (c) Except as otherwise set forth in Schedule I attached hereto, the Authority will treat the first price (meaning single) at which 10% of each maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity (if different interest rates apply within a maturity, each separate CUSIP number within that maturity will be subject to the 10% test). At or promptly after the execution of this Purchase Contract, the Underwriter shall report to the Authority the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Authority the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the date of Closing (as defined herein) has occurred, until either (i) the Underwriter has sold all Bonds of that maturity or (ii) the 10% test has been satisfied as to the Bonds of that maturity, provided that, the Underwriter’s reporting obligation after the date of Closing may be at reasonable periodic intervals or otherwise upon request of the Authority or Bond Counsel (as defined herein). For purposes of this Section, if Bonds mature on the same date but have different interest rates, each separate CUSIP number within that maturity will be treated as a separate maturity of the Bonds. (d) The Underwriter con firms that it has offered the Bonds to the public on or before the date of this Purchase Contract at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Schedule I attached hereto, except as ot herwise set forth therein. Schedule I also sets forth, as of the date of this Purchase Contract, the maturities, if any, of the Bonds for which the Underwriter represents that (i) the 10% test has been satisfied (assuming orders are confirmed by the end of the day immediately following the day of execution of this Purchase Contract) and (ii) the 10% test has not been satisfied and for which the Authority and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will a llow the Authority to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering-price rule remains applicable to any m aturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
(1) the close of the fifth (5th) business day after the sale date; or (2) the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
The Underwriter will advise the Authority promptly after the close of the fifth (5th) business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
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Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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4 (e) The Underwriter confirms that:
(i) any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obliga ting each dealer who is a member of the selling group and each broker-dealer that is a party to such third-party distribution agreement, as applicable:
(A) (1) to report the prices at which it sells to the public the unsold Bonds of each maturity allocate d to it, whether or not the date of Closing has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the date of Closing may be at reasonable periodic intervals or otherwise upon request of the Underwriter, and (B) to comply with the hold -the-offering-price rule, if applicable, if and for so long as directed by the Underwriter,
(B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and
(C) to acknowledge that, unless otherwise advised by the dealer or broker- dealer, the Underwriter shall assume that each order submitted by the dealer or broker- dealer is a sale to the public.
(ii) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker -dealer that is a party to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it , whether or not the date of Closing has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the date of Closing may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold -the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires. (f) The Authority and the City acknowledge that, in making the representations set forth in this section, the Underwriter will rely on (i) in the event a selling group has been creat ed in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold -the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a third -party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker -dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires.
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Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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5 (g) The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in t he initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section.
Further, for purposes of this section:
(1) “public” means any person other than an underwriter or a related party, (2) “underwriter” means (A) any person that agrees pursuant to a written contract with the Authority (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third -party distribution agreement participating in the initial sale of the Bonds to the public); (3) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (i) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and (4) “sale date” means the date of execution of this Purchase Contract by all parties.
3. Use and Preparation of Official Statement . The Authority and the City hereby ratify, confirm and approve of the use and distribution by the Underwriter prior to the date hereof of an official statement in preliminary form dated [_____], 2025 relating to the Bonds (which, together with all appendices thereto, is referred to herein as the “Preliminary Official Statement”). The Authority and the City have deemed final the Preliminary Official Statement as of its date for purposes of Rule 15c2- 12 promulgated under the Securities Exchange Act of 1934 ( “Rule 15c2-12”), except for information permitted to be omitted therefrom by Rule 15c2 -12. The Authority and the City hereby agrees to deliver or cause to be delivered to the Underwriter, within seven (7) business days of the date hereof and at least in sufficient time to accompany any orders or confirmations that request payment from any customer, copies of the final official statement, dated the date hereof (which, together w ith all information previously permitted to have been omitted by Rule 15c2 -12 and any amendments or supplements to such official statement as have been approved by the Authority, the City and the Underwriter is referred to herein as the “Official Statement ”) in sufficient quantity to enable the Underwriter to comply with the rules of the Securities and Exchange Commission and the Municipal Securities Rulemaking Board. The Authority and the City hereby approve of the use and distribution by the Underwriter of the Official Statement in connection with the offer and sale of the Bonds. At the time of or prior to the Closing Date, the Underwriter shall file a copy of the Official Statement in printed or electronic form with, and as permitted by, the Municipal S ecurities Rulemaking Board through its Electronic Municipal Market Access System. The Underwriter shall advise the Authority and the City of the date of such filing.
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Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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6 4. Representations, Warranties and Agreements of the Authority. The Authority hereby represents, warrants and agrees with the Underwriter as follows:
(a) The Authority is, and will be on the Closing Date, a joint powers agency of the State of California organized and operating pursuant to the laws of the State of California with the full power and authority to issue the Bonds pursuant to the Act, to approve the delivery and distribution of the Preliminary Official Statement, to execute and deliver the Official Statement and to enter into the 2025A Installment Sale Agreement, the Trust Agreement and this Purchase Contract (collectively, the “Authority Documents ”) and, when executed and delivered by the respective parties thereto, the Authority Documents will constitute the legal, valid and binding obligations of the Authority in accordance with their respective terms.
(b) By all necessary official action of the Authority prior to or concurrently with the acceptance hereof, the Authority has duly approved the distribution of the Preliminary Official Statement and the execution, delivery and distribution of t he Official Statement, and has duly authorized and approved the execution and delivery of, and the performance by the Authority of the obligations on its part contained in, the Authority Documents and the consummation by it of all other transactions contem plated by the Preliminary Official Statement , the Official Statement and the Authority Documents.
(c) The Authority is not in breach of or default under any applicable constitutional provision, law or administrative regulation to which it is subject or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or to which the Authority or any of its property or assets is otherwise subject, and no event has occurred and is continuing which with the passage of time or the giving of notice, or both, would constitute such a default or event of default in any material respect under any such instrument; and the issuance of the Bonds , the delivery of the Preliminary Officia l Statement and the execution and delivery of the Official Statement and the Authority Documents and compliance with the provisions on the Authority’s part contained herein and therein, will not in any material respect conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject, nor will any such execution, delivery, ado ption or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the Authority under the terms of any such law, administrative regulation , judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided in the Trust Agreement or the 2025A Installment Sale Agreement.
(d) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body, pending or, to the best knowledge of the Authority after reasonable investigation, threatened against the Authority in any material respect affecting the existence of the Authority or the titles of its officers to their respective offices or affecting or seeking to prohibit, restrain or enjoin the issuance, sale or delivery of the Bonds or contesting or affecting, as to the Authority, the validity or enforceability of the Bonds or the Authority Documents or contesting the powers of the Authority or its authority to enter into, adopt or perform its obligations under any of the foregoing, or contesting in any way the completeness or accuracy of the Preliminary Official Statement o r the Official Statement, or any amendment or supplement thereto, wherein an unfavorable decision, ruling or finding would materially adversely affect the validity or enforceability of the Authority Documents.
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Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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7 (e) All authorizations, approvals, licenses, permi ts, consents and orders of any governmental authority, legislative body, board, agency or commission having jurisdiction of the matter which are required for the due authorization by, or which would constitute a condition precedent to or the absence of which would materially adversely affect the due performance by, the Authority of its obligations in connection with the issuance of the Bonds under the Trust Agreement have been duly obtained, except for such approvals, consents and orders as may be required under the Blue Sky or securities laws of any state in connection with the offering and sale of the Bonds; and, except as described in or contemplated by the Preliminary Official Statement and the Official Statement, all authorizations, approvals, licenses, permits, consents and orders of any governmental authority, board, agency or commission having jurisdiction of the matter which are required for the due authorization by, or which would constitute a condition precedent to or the absence of which would mat erially adversely affect the due performance by, the Authority of its obligations under the Authority Documents have been duly obtained.
(f) The Authority will furnish such information, execute such instruments and take such other action in cooperation with th e Underwriter as the Underwriter may reasonably request in order (i) to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate and (ii) to determine the eligibility of the Bonds for investment under the laws of such states and other jurisdictions, and will use its best efforts to continue such qualification in effect so long as required for distribution of the Bonds; provided, however, that in no event shall the Authority be required to take any action which would subject it to service of process in any jurisdiction in which it is not now so subject.
(g) As of its date and the date hereof, the Preliminary Official Statement (excluding information concerning DTC and the book -entry system as to which no representation is made) did not, except as to the information permitted to be omitted by Rule 15c2-12, contain any untrue statement of a material fact or omit to state a material fac t necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (h) As of the date thereof and at all times subsequent thereto to and including the date which is 25 days following the End of the Underwritin g Period (as such term is hereinafter defined) for the Bonds, the Official Statement (excluding information concerning DTC and the book- entry system and the information under the caption “UNDERWRITING” (collectively, the “Excluded Information”)) as to which no representation is made) did not and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (i) If between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds, an event occurs which might or would cause the information contained in the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the Authority will notify the Underwriter, and, if in the opinion of the Aut hority, the Underwriter or their respective counsel, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Authority will forthwith prepare and furnish to the Underwriter (at the expense of the Authority) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary Packet Pg. 213
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
8 in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to prospective purchasers, not misleading. For the purposes of t his subsection, between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds, the Authority will furnish such information with respect to itself as the Underwriter may from time to time reasonably request.
(j) If the information contained in the Official Statement is amended or supplemented pursuant to paragraph (i) of this Section 4, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such paragra ph) at all times subsequent thereto up to and including the date which is 25 days after the End of the Underwriting Period for the Bonds, the portions of the Official Statement so supplemented or amended will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(k) After the Closing Date, the Authority will not participate in the issuance of any amendment of or supplement to the Official Statement to which, after being furnished with a copy, the Underwriter shall reasonably object in writing.
(l) As used herein and for the purposes of the foregoing, the term “End of the Underwriting Period” for the Bonds shall mean the earlier of (i) the Closing Date unless the Authority and the City shall have been notified in writing to the contrary by the Underwriter on or prior to the Closing Date, or (ii) the date on which the End of the Underwriting Period for the Bonds has occurred under Rule 15c2-12; provided, however, that the Authority and the City may treat as the End of the Underwriting Period for the Bonds the date specified as such in a notice from the Underwriter stating the date which is the End of the Underwriting Period.
(m) The Authority will apply, or cause the application of, the proceeds of the Bonds in accordance with the 2025A Installment Sale Agreement and the Trust Agreement. (n) Any certificate signed by any authorized official of the Authority, and delivered to the Underwriter in connection with the delivery of the Bonds, shall be deemed a representation and warranty by the Authority to the Underwriter as to the statements made therein.
5. Representations, Warranties and Agreements of the City. The City hereby represents, warrants and agrees with the Underwriter as follows:
(a) The City is and has all necessary power and authority to enter into and perform its duties under the 2025A Installment Sale Agreement, the Continuing Disclosure Agreement and this Purchase Co ntract (collectively, the “City Documents ”) and, when executed and delivered by the respective parties thereto, the City Documents will constitute the legal, valid and binding obligations of the City in accordance with their respective terms.
(b) By all necess ary official action of the City prior to or concurrently with the acceptance hereof, the City has duly approved the distribution of the Preliminary Official Statement and the execution, delivery and distribution of the Official Statement, and has duly auth orized and approved the execution and delivery of, and the performance by the City of the obligations on its part contained in, the City Documents and the consummation by it of all other transactions contemplated by the Preliminary Official Statement, the Official Statement and the City Documents.
Packet Pg. 214
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
9 (c) The City is not in any material respect in breach of or default under any applicable constitutional provision, law or administrative regulation to which it is subject or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or to which the City or any of its property or assets is otherwise subject, and no event has occurred and is continuing which with the passage of ti me or the giving of notice, or both, would constitute such a default or event of default in any material respect under any such instrument; and the issuance of the Bonds , the delivery of the Preliminary Official Statement and the execution and delivery of the Official Statement and the City Documents and compliance with the provisions on the City’s part contained herein and therein, will not in any material respect conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of a ny lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the City under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided in the 2025A Installment Sale Agreement.
(d) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body, pending or, to the best knowledge of the City after reasonable investigation, threatened against the City in any material respect affecting the existence of the City or the titles of its officers to their respective offices or affecting or seeking to prohibit, restrain or enjoin the issuance, sale or delivery of the Bonds or contesting or affecting, as to the City, the validity or enforceability of the Bonds or the City Documents or contesting the powers of the City or its authority to enter into, adopt or perform its obligations under any of the foregoing, or contesting in any way the completeness or accuracy of the Preliminary Official Statement or the Official Statement, or any amendment or supplement thereto, wherein an unfavorable decision, ruling or finding would materially adversely affect the validity or enforceability of the City Documents. (e) Except as described in or contemplated by the Preliminary Official Statement and the Official Statement, all authorizations, approvals, licenses, permits, consents and orders of any governmental authority, board, agency or commission having jurisdiction of the matter which are required for the due authorization by, or which would constitute a condition precedent to or the absence of which would materially adversely affect the due performance by, the City of its obligations under the City Documents have been duly obtained.
(f) The City will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order (i) to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate and (ii) to determine the eligibility of the Bonds for investment under the laws of such states and other jurisdictions, and will use its best efforts to continue such qualification in effect so long as required for distribution of the Bonds; provided, however, that in no event shall the City be required to take any action which would subject it to service of process in any jurisdiction in which it is not now so subject. (g) As of its date and the date hereof, the Preliminary Official Statement (excluding information concerning DTC and the book -entry system as to which no representation is made) did not, except as to the information permitted to be omitted by Rule 15c2-12, contain any untrue statement Packet Pg. 215
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
10 of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (h) As of the date thereof and at all times subsequent thereto to and including the date which is 25 d ays following the End of the Underwriting Period for the Bonds, the Official Statement (excluding the Excluded Information) as to which no representation is made) did not and will not contain any untrue statement of a material fact or omit to state a mater ial fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (i) If between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds, an event occurs wh ich might or would cause the information contained in the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the City will notify the Underwriter, and, if in the opinion of the City, the Underwriter or their respective counsel, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the City will forthwith prepare and furnish to the Underwriter (at the expense of the City) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to prospective purchasers, not misleading. For the purposes of this subsection, between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds, the City will fu rnish such information with respect to itself as the Underwriter may from time to time reasonably request.
(j) If the information contained in the Official Statement is amended or supplemented pursuant to paragraph (i) of this Section 5, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such paragraph) at all times subsequent thereto up to and including the date which is 25 days after the End of the Underwriting Period for the Bonds, the portions of the Official Statement so supplemented or amended (other than the Excluded Information) will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(k) After the Closing Date, the City will not participate in the issuance of any amendment of or supplement to the Official Statement to which, after being furnished with a copy, the Underwriter shall reasonably object in writing.
(l) As used herein and for the purposes of the foregoing, the term “End of the Underwriting Period” for the Bonds shall mean the earlier of (i) the Closing Date unless the Authority shall have been notified in writing to the contrary by the Underwriter on or prior to the Closing Date, or (ii) the date on which the End of the Underwriting Period for the Bonds has occurred under Rule 15c2-12; provided, however, that the Authority may treat as the End of the Underwriting Period for the Bonds the date specified as such in a notice from the Underwriter stating the date which is the End of the Underwriting Period.
(m) The City will apply, or cause the application of, the proceeds of the Bonds in accordance with the 2025A Installment Sale Agreement and the Trust Agreement.
Packet Pg. 216
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
11 (n) Other than as described in the Official Statement, as of the time of acceptance hereof and as of the Closing Date the City does not and will not have outstanding any indebtedness which is secured by a lien on the Net Revenues (as defined in the Official Statement) or moneys in the City’s Electric Revenue Fund superior to or on a parity with the lien of the Bonds thereon. (o) Between the date of this Purchase Contract and the Closing Date, the City will not, without the prior written consent of the Underwriter, and except as disclosed in the Preliminary Official Statement and the Official Statement, offer or issue any bonds, notes or other obligations for borrowed money, or incur any material liabilities, direct or contingent, payable from the Net Revenues. (p) Except as disclosed in the Preliminary Official Statement and the Official Statement, the City has not failed to comply in all material respects with the terms of any continuing disclosure obligation under Rule 15c2-12 within the past five years. (q) The financial statements of, and other financial information regarding the Electric System, in the Preliminary Official Statement and the Official Statement fairly present the financial position and results of the Electric System as of the dates and for the periods therein set forth. (r) Any certificate signed by any authorized official of the Authority or the City, and delivered to the Underwriter in connection with the delivery of the Bonds, shall be deemed a representation and warranty by the Authority or the City, as applicable, to the Underwriter as to the statements made therein.
6. Conditions to the Obligations of the Underwriter. The Underwriter hereby enters into this Purchase Contract in reliance upon the rep resentations and warranties of the Authority and the City contained herein and the representations and warranties of the Authority and the City to be contained in the documents and instruments to be delivered on or prior to the Closing Date and upon the performance by the Authority and the City of their obligations both on and as of the date hereof and as of the Closing Date. Accordingly, the Underwriter ’s obligations under this Purchase Contract to purchase, to accept delivery of and to pay for the Bonds shall be subject, at the option of the Underwriter, to the accuracy in all material respects of the representations and warranties of the Authority and the City contained herein as of the date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of the officers and other officials of the Authority and the City made in any certificate or other document furnished pursuant to the provisions hereof, to the performance by the Authority and the City of their obligations to be performed hereunder and under such documents and instruments at or prior to the Closing Date, and also shall be subject to the following additional conditions:
(a) The Underwriter shall receive, within seven (7) business days of the date hereof and at least in sufficient time to accompany any orders or confirmations that request payment from any customer, copies of the Official Statement (including all information previously permitted to have been omitted by Rule 15c2 -12 and any amendments or supplements as have been approved by the Underwriter), in such quantity as the Underwriter shall have requested pursuant to Section 2 hereof; (b) The representations and warranties of the Authority and the City contained herein shall be true and correct on the date hereof a nd on the Closing Date, as if made on and at the Closing Date;
Packet Pg. 217
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
12 (c) As of the Closing Date, the Financing Documents shall have been duly authorized, executed and delivered by the respective parties thereto, and the Official Statement shall have been duly authorized, executed and delivered by the Authority and the City, all in substantially the forms heretofore submitted to the Underwriter, with only such changes as shall have been agreed to in writing by the Underwriter, and such Financing Documents shall be in full force and effect and shall not have been amended, modified or supplemented and the Official Statement shall not have been supplemented or amended, except in any such case as may have been agreed to by the Underwriter; and there shall be in full force and effect such resolution or resolutions of the Governing Board of the Authority and the City Council of the City as, in the opinion of Bond Counsel, shall be necessary or appropriate in connection with the transactions contemplated hereby; (d) Between the date hereof and the Closing Date, the market price or marketability, at the initial public offering prices set forth in the Official Statement, of the Bonds shall not have been materially adversely affected, in the reasonable judgment of the Underwriter (evidenced by a written notice to the Authority terminating the obligation of the Underwriter to accept delivery of and make any payment for the Bonds), by reason of any of the following:
(1) an amendment to the Constitut ion of the United States or the State of California shall have been passed or legislation shall have been introduced in or enacted by the Congress of the United States or the legislature of any state having jurisdiction of the subject matter or legislation pending in the Congress of the United States shall have been amended or legislation shall have been recommended to the Congress of the United States or to any state having jurisdiction of the subject matter or otherwise endorsed for passage (by press release, other form of notice or otherwise) by the President of the United States, the Treasury Department of the United States, the Internal Revenue Service or the Chairman or ranking minority member of the Committee on Finance of the United States Senate or the Committee on Ways and Means of the United States House of Representatives, or legislation shall have been proposed for consideration by either such Committee by any member thereof or presented as an option for consideration by either such Committee by the staff of such Committee or by the staff of the Joint Committee on Taxation of the Congress of the United States, or legislation shall have been favorably reported for passage to either House of the Congress of the United States by a Committee of such H ouse to which such legislation has been referred for consideration, or a decision shall have been rendered by a court of the United States or of the State of California or the Tax Court of the United States, or a ruling shall have been made or a regulation or temporary regulation shall have been proposed or made or any other release or announcement shall have been made by the Treasury Department of the United States, the Internal Revenue Service or other federal or State of California authority, with respec t to federal or State of California taxation upon revenues or other income of the general character to be derived by the Authority or upon interest received on obligations of the general character of the Bonds which may have the purpose or effect, directly or indirectly, of affecting the tax status of the Authority, its property or income, its securities (including the Bonds) or the interest thereon, or any tax exemption granted or authorized by State of California legislation;
(2) legislation enacted, introduc ed in the Congress or recommended for passage by the President of the United States to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under the Securities Act of 1933, as amended, or that the Trust Agreement is not exempt from qualification under the Trust Indenture Act of 1939, as amended; Packet Pg. 218
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
13 (3) the outbreak or escalation in military hostilities or declaration by the United States of a national or int ernational emergency or war or other calamity or crisis or the escalation thereof affecting the financial markets of the United States or elsewhere; (4) an order, decree or injunction of any court of competent jurisdiction, or order, ruling, regulation or official statement by the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, issued or made to the effect that the issuance, offering or sale of obligations of the general character of the Bonds, or the issuance, offering or sale of the Bonds, including any or all underlying obligations, as contemplated hereby or by the Preliminary Official Statement and the Official Statement, is or would be in violation of the federal securities laws as amended and then in effect;
(5) the withdrawal or downgrading of any rating of the Bonds or any other outstanding debt of the City’s Electric System by Fitch, Inc. or the rating on the Bonds shall have been placed on “Negative Outlook” by Fitch, Inc.; or
(6) except as disclo sed in or contemplated by the Preliminary Official Statement and the Official Statement, any material adverse change in the affairs of the Electric System shall have occurred.
(e) No declaration of a general banking moratorium by federal, New York or California authorities, or the general suspension of trading on any national securities exchange, or a major financial crisis or a material disruption in commercial banking or securities settlement or clearances services shall have occurred.
(f) No event shall occur or be discovered which makes untrue or incorrect in any material respect, as of the time of such event, any statement or information contained in the Preliminary Official Statement or the Official Statement or which is not reflected in the Preliminary Official Statement or the Official Statement but should be reflected therein in order to make the statements contained therein not misleading in any material respect and requires an amendment of or supplement to the Official Statement.
(g) No imposition by the New York Stock Exchange or other national securities exchange, or any governmental authority, of any material restrictions not now in force with respect to the Bonds or obligations of the gen eral character of the Bonds or securities generally, or the material increase of any such restrictions now in force, including those relating to the extension of credit by, or the charge to the net capital requirements of, the Underwriter. (h) No decision rendered by a court established under Article III of the Constitution of the United States or by the Tax Court of the United States, or an order, ruling, regulation (final, temporary or proposed) or official statement issued or made by or on behalf of the Secu rities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter shall have been made or issued to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying ar rangements, are not exempt from registration under the Securities Act of 1933, as amended, or that the Trust Agreement is not exempt from qualification under the Trust Indenture Act of 1939, as amended.
(i) At or prior to the Closing Date, the Underwriter shal l have received the following documents, in each case satisfactory in form and substance to the Underwriter:
Packet Pg. 219
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
14 (1) The Preliminary Official Statement and the Official Statement and each supplement or amendment, if any, thereto, executed by the Authority and the City. (2) Copies of each of the Financing Documents, each duly executed and delivered by the respective parties thereto.
(3) The unqualified approving opinion of Bond Counsel, dated the Closing Date and addressed to the Authority, in substantially the form attache d to the Official Statement as Appendix F thereto.
(4) The supplemental opinion of Bond Counsel dated the Closing Date and addressed to the Underwriter in substantially the form attached hereto as Exhibit A. (5) The opinion of Stradling Yocca Carlson & Rauth LLP, as disclosure counsel, dated the Closing Date and addressed to the City , the Authority and the Underwriter in substantially the form attached hereto as Exhibit B.
(6) The opinion of the City Attorney of the City as counsel for the Authority, dated the Closing Date and addressed to the Underwriter, in substantially the form attached hereto as Exhibit C.
(7) The opinion of the City Attorney of the City, dated the Closing Date and addressed to the Underwriter, in substantially the form attached hereto as Exhibit D. (8) The opinion of counsel to the Trustee, dated the Closing Date and addressed to the Authority, the City and the Underwriter, to the effect that (i) the Trustee has duly accepted appointment as Trustee under the Trust Agreement , has duly authorized, executed a nd delivered the Trust Agreement and the Continuing Disclosure Agreement and duly authenticated and delivered the Bonds on the Closing Date; and (ii) the Trust Agreement and the Continuing Disclosure Agreement constitute the legally valid and binding obligations of the Trustee, enforceable against the Trustee in accordance with their terms, except that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws in effect from time to time affecting the rights of creditors generally and except to the extent that the enforceability thereof may be limited by the application of general principles of equity. (9) The opinion of Norton Rose Fulbright US LLP ( “Underwriter’s Counsel”), dated the Closing Date and addressed to the Underwriter, in form and substance satisfactory to the Underwriter.
(10) A certificate or certificates, dated the Closing Date, signed by a duly authorized official of the Authority satisfactory to the Underwriter, in form and substance satisfactory to the Underwriter, to the effect that (i) the representations and warranties of the Authority contained in this Purchase Contract and the other Authority Document s are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) there is no action, suit, proceeding, inquiry or investigation pending or, to the best knowledge of such official after reasonable investigation, threatened (a) to restrain or enjoin the authentication, execution, sale or delivery of any of the Bonds, (b) in any way affecting the validity of the Bonds or the Authority Documents or (c) in any way contesting the existence or powers of the Authority; and (iii) nothing has come to the Authority’s attention wh ich would cause the Authority to believe that any statement or Packet Pg. 220
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
15 information contained in the Preliminary Official Statement (excluding information permitted to be omitted therefrom under Rule 15c2-12 and the information concerning DTC and the book-entry system included therein and Appendix F thereto), as of its date and as of the date hereof , and the Official Statement (excluding the information concerning DTC and the book-entry system included therein and Appendix F thereto), as of its date and as of the Closing Date, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (11) A certificate or certi ficates, dated the Closing Date, signed by a duly authorized official of the City satisfactory to the Underwriter, in form and substance satisfactory to the Underwriter, to the effect that (i) the representations and warranties of the City contained in thi s Purchase Contract and the other City Documents are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) there is no action, suit, proceeding, inquiry or investigation pending or, to the best knowledge of such official after reasonable investigation, threatened (a) to restrain or enjoin the payment of the 2025A Installment Sale Payments (as defined in the Official Statement) or the execution and delivery of the City Documents, (b) in any way contesting or affecting the validity of the City Document s or ( c) in any way contesting the existence or powers of the City, nor to the best knowledge of such official after reasonable investigation, is there any basis for any such action, suit, proceeding, inquiry or investigation, wherein an unfavorable decision, ruling or finding would make invalid or materially adversely affect the authorization, execution, delivery or performance by the City of the foregoing; (iii) nothing has come to the City’s attention which would cause the City to believe that the Preliminary Official Statement (excluding information permitted to be omitted therefrom under Rule 15c2 -12 and the information concerning DTC and the book -entry system included therein and Appe ndix F thereto), as of its date and as of the date hereof, and the Official Statement (excluding the information concerning DTC and the book-entry system included therein , the information under the caption “UNDERWRITING” and Appendices E and F thereto), as of its date and as of the Closing Date, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misle ading; and (iv) since June 30, 2024, except as referred to in or as contemplated by the Official Statement, with respect to its Electric System, the City has not incurred any financial liabilities, direct or contingent, or entered into any transactions and there has not been any adverse change in the condition, financial or physical, of the Electric System, in any case that would materially and adversely affect the ability of the City to meet its obligations under the 2025A Installment Sale Agreement and the Bonds. (12) A certificate, dated the Closing Date, signed by a duly authorized official of the Trustee, satisfactory in form and substance to the Underwriter, to the effect that: (i) the Trustee is a national banking association organized and existing under and by virtue of the laws of the United States of America, having the full power and being qualified to enter into and perform its duties under the Trust Agreement and Continuing Disclosure Agreement; (ii) the Trustee is duly authorized to enter into the Trust Agreement and the Continuing Disclosure Agreement and to authenticate and deliver the Bonds to the Underwriter pursuant to the terms of the Trust Agreement; (iii) the execution and delivery of the Trust Agreement and Continuing Disclosure Agreement and compliance with the provisions on the Trustee’s part contained therein, and the authentication and delivery of the Bonds will not conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Trustee is a party or is otherwise subject (except that no representation, warranty or agreement is made with respect to any federal or state securities or Blue Sky laws or regulations), nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any Packet Pg. 221
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
16 lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets held by the Trustee pursuant to the lien created by the Trust Agreement under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the Trust Agreement ; and (iv) there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body, served on, or, to the best knowledge of such officer, threatened against, the Trustee, affecting the existence of the Trustee or the titles of its officers to their respective offices, or in any way contesting or affecting the validity or enforceability of the Trust Agreement and Continuing Disclosure Agreement against the Trustee, or contesting the power of the Trustee or its authority to enter into, adopt or perform its obligations under the Trust Agreement and Continuing Disclosure Agreement , wherein an unfavorable decision, ruling or finding would materially adversely affect the validity or enforcea bility of the Trust Agreement and Continuing Disclosure Agreement against the Trustee or the authentication and delivery of the Bonds. (13) A certified copy of the general resolution of the Trustee authorizing the execution and delivery of the Trust Agreement and the Continuing Disclosure Agreement. (14) Certified copies of the resolutions of the Authority authorizing the issuance and sale of the Bonds and the execution and delivery of the Authority Documents and the Official Statement.
(15) Certified copies of the resolutions of the City authorizing the execution and delivery of the City Documents and the Official Statement. (16) Evidence satisfactory to the Underwriter that the rating on the Bonds described in the Official Statement is in full force and effect as of the Closing Date. (17) A copy of the Preliminary Blue Sky Survey with respect to the Bonds, if any, prepared by Underwriter’s Counsel.
(18) A copy of the audited financial statements of the City’s Electric Utility Fund included as Appendix A to the Official Statement.
(19) Tax certifications by the Authority and the City in form and substance acceptable to Bond Counsel.
(20) Evidence that a federal tax information form 8038-G has been prepared for filing with respect to the Bonds.
(21) A copy of the Notice of Final Sale required to be delivered to the California Debt and Investment Advisory Commission pursuant to Section 8855 of the California Government Code.
(22) Such additional legal opinions, certificates, proceedings, instruments and other documents as the Unde rwriter, Underwriter’s Counsel or Bond Counsel may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the representations of the Authority and the City herein and of the statements and information co ntained in the Preliminary Official Statement and the Official Statement, and the due performance or satisfaction by the Authority and the City on or prior to the Closing Date of all agreements then to be Packet Pg. 222
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
17 performed and all conditions then to be satisfied by the Authority and the City in connection with the transactions contemplated hereby and by the Preliminary Official Statement and the Official Statement and the Financing Documents.
If the Authority shall be unable to satisfy the conditions to the Underwriter’s obligations contained in this Purchase Contract or if the Underwriter’s obligations shall be terminated for any reason permitted herein, all obligations of the Underwriter hereunder may be terminated by the Underwriter at, or at any time prior to, the Closing Date by written notice to the Authority and neither the Underwriter nor the Authority shall have any further obligations hereunder.
7. Reserved.
8. Expenses.
(a) The Underwriter shall be under no obligation to pay, and the Authority or the City shall pa y, any expenses incident to the performance of the Authority’s obligations hereunder including, but not limited to: (i) the cost of preparation, printing and distribution of the Financing Documents, the Preliminary Official Statement, the Official Statemen t and any supplements or amendments thereto, including a reasonable number of certified or conformed copies thereof; (ii) the cost of preparation and printing of the Bonds; (iii) the fees and disbursements of Bond Counsel and disclosure counsel; (iv) the fees and disbursements of any engineers, accountants and other experts, consultants, advisors, dissemination agents or other service providers retained by the Authority or the City; (v) fees for bond ratings (which include fees of rating agencies and travel expenses of the Authority or the City); and (vi) the Underwriter’s out-of-pocket expenses incurred with respect to the financing, including (a) air travel and hotel costs in connection with the pricing of the Bonds, any investor meetings, any rating agency trips and the Closing, (b) meals and transportation for the Authority or the City, the Underwriter and other working group personnel during such trips, (c) expenses related to attending working group meetings, such as parking, meals and transportation, and (d) any other miscellaneous costs related to the Closing. (b) The Underwriter shall pay: (i) the cost of preparation and printing of this Purchase Contract and the Preliminary Blue Sky; (ii) all advertising expenses and Blue Sky filing fees in connection with the public offering of the Bonds; (iii) fees, if any, payable to the California Debt and Investment Advisory Commission, the Municipal Securities Rulemaking Board and the fees associated with obtaining CUSIP numbers for the Bonds in connection with the execution and delivery of the Bonds; and (iv) all other expenses incurred by them in connection with the public offering of the Bonds not outlined in (a) above, including the fees and disbursements of Underwriter’s Counsel. (c) The Authority and the City acknowledge that they have had an opportunity, in consultation with such advisors as it may deem appropriate, if any, to evaluate and consider the fees and expenses being incurred as part of the issuance of the Bonds.
9. Notices. Any notice or other communication to be given (i) to the Authority under this Purchase Contract may be given by delivering the same in writing to the Authority, 777 Cypress Avenue, Redding, California 960 01, (ii) to the City under this Purchase Contract may be given by delivering the same in writing to the City, 777 Cypress Avenue, Redding, California 96001, and (iii) to the Underwriter under this Purchase Contract may given by delivering the same in writi ng to the Underwriter: J.P. Morgan Securities LLC, 560 Mission Street, Floor Three, San Francisco, California 94105, Attention: Tyler Old.
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18 10. Survival of Representations and Warranties . The Auhtority’s and the City’s representations, warranties and agreemen ts contained in this Purchase Contract or made in any certificate delivered hereunder shall remain operative and in full force and effect, regardless of: (i) any investigations or statements made by or on behalf of the Underwriter; and (ii) delivery of and payment for the Bonds pursuant to this Purchase Contract.
11. Effectiveness and Counterpart Signatures . This Purchase Contract shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by duly authorized officers of the Authority and duly authorized officers of the City and shall be valid and enforceable as of the time of such acceptance. This Purchase Contract may be executed by the parties hereto in separate counterparts, each of which when so execute d and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.
12. Parties in Interest . This Purchase Contract is made solely for the benefit of the Authority, the City and the Underwriter (including the successors or assigns of the Underwriter) and no other person shall acquire or have any right hereunder or by virtue hereof.
13. No Fiduciary. Each of the Authority and the City acknowledges and agrees that (i) the purchase and sale of the Bonds pursuant to this Purchase Contract is an arm ’s-length commercial transaction between the Authority, the City and the Underwriter, and that the Underwriter has financial and other interests that differ from those of the Authority and the City, (ii) in connection therewith and with the discussions, undertakings and procedures leading up to the consummation of such transaction, the Underwriter is and has been acting solely as principal and is not acting as the agent or fiduciary of the Authority or the City, (iii) the Underwriter has not assumed an advisory or fiduciary responsibility in favor of the Authority or the City with respect to the offering contemplated hereby or the discussions, undertakings and procedures leading thereto (irrespective of whether the Underwriter has provided other services or are currently providing other services to the Authority or the City on other matters) and the Underwriter has no obligation to the Authority or the City with respect to the offering contemplated hereby except the obligations expressly set forth in this Purchase Contract and (iv) the Authority and the City have consulted their own legal, financial and other advisors to the extent they have deemed appropriate.
14. Electronic Signatures. Each of the parties hereto agrees that the transaction consisting of this Purchase Contract may be conducted by electronic means. Each party agrees, and acknowledges that it is such party’s intent, that if such party signs this Purchase Contract using an electronic signature, it is signing, adopting, and accepting this Purchase Contract and that signing this Purchase Contract using an electronic signature is the legal equivalent of having placed its handwritten signature on this Purchase Contract on paper. Each party acknowledges that it is being provided with an electronic or paper copy of this Purchase Contract in a usable format.
15. Waiver of Jury Trial . TO THE EXTENT PERMITTED BY LAW, THE
AUTHORITY, CITY AND THE UNDERWRITER HEREBY KNOWINGLY, VOLUNTARILY,
AND INTENTIONALLY WAIVE ANY RIGH T TO TRIAL BY JURY THE AUTHORITY, CITY
OR THE UNDERWRITER MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN
EQUITY, IN CONNECTION WITH THIS PURCHASE CONTRACT OR ANY TRANSACTIONS RELATED HERETO.
16. Headings. The headings of the sections of this Purchase Cont ract are inserted for convenience only and shall not be deemed to be a part hereof.
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19 [Signature page follows.]
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17. Governing Law. This Purchase Contract shall be construed in accordance with the laws of the State of California.
Very truly yours,
J.P. MORGAN SECURITIES LLC
By:
Executive Director
Accepted:
REDDING JOINT POWERS FINANCING AUTHORITY
By:
Executive Director
CITY OF REDDING
By:
City Manager
ACCEPTED at ______ p.m. California time this
____ day of _______________, 2025
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SCHEDULE I
Redding Joint Powers Financing Authority
Electric System Revenue Bonds, 2025 Series A
MATURITY SCHEDULE
Payment Dates
(June 1)
Principal
Amount
Interest
Rate Yield Price
[____] $ % %
$[____] [____]% Term 2025A Bonds due June 1, 20[____] – Yield: [____]%; Price: [____] C Priced to par call on June 1, 20[____]
* 10% Test Maturities
** Hold-the-Price Maturity
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Redemption of the Bonds
Optional Redemption. The Bonds maturing on or before June 1, 20___ are not subject to optional redemption prior to maturity. The Bonds maturing on and after June 1, 20___ are subject to redemption prior to their respective stated maturities at the direction of the Authority, from mone ys deposited by the Authority or the City from any source of available funds, as a whole or in part on any date (in such maturities as are designated by the Authority at the direction of the City, or if the Authority fails to designate such maturities, in inverse order of maturity and by lot within a maturity) on or after June 1, 20___, at a redemption price equal to the principal amount of the Bonds called for redemption together with accrued interest to the date fixed for redemption, without premium.
Mandatory Redemption. The term Bonds maturing on June 1, 20___ are subject to mandatory redemption prior to maturity, in part by lot, commencing on June 1, 20___ and on each June 1 thereafter to and including June 1, 20___, from scheduled 2025A Installment Sale Payments made by the City on such dates, at a redemption price equal to the principal amount of the Bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium, according to the following schedule (subject to modification in the event of optional redemption as described above):
Bonds maturing June 1, 20[__]
Redemption Date
(June 1)
Principal
Amount
$
†
_______________
† Final Maturity.
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EXHIBIT A
FORM OF SUPPLEMENTAL OPINION OF BOND COUNSEL
__________, 2025
J.P. Morgan Securities LLC,
San Francisco, California
Re: $[PAR AMOUNT] Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2025 Series A
Ladies and Gentlemen:
This letter is addressed to you, as Underwriter, pursuant to Section 6(i)(4) of the Purchase Contract, dated __________, 2025 (the “Purchase Contract”), among you, the Redding Jo int Powers Financing Authority (the “Authority”) and the City of Redding (the “City”), providing for the purchase of $_______ principal amount of Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2025 Series A (the “Bonds”). The Bonds are being issued pursuant to a trust agreement, dated as of _________ 1, 2025 (the “Trust Agreement”), between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Trust Agreement or, if not defined in the Trust Agreement, in the Purchase Contract.
We have delivered our final legal opinion (the “Bond Opinion”) as bond counsel to the Authority concerning the validity of th e Bonds and certain other matters, dated the date hereof and addressed to the Authority. You may rely on such opinion as though the same were addressed to you.
In connection with our role as bond counsel to the Authority, we have reviewed the Purchase Contract, the Trust Agreement, the 2025A Installment Sale Agreement, dated as of _________ 1, 2025 (the “Agreement”), by and between the Authority and the City, the Tax Certificate, dated the date hereof (the “Tax Certificate”), certain provisions of the [printed/posted] preliminary official statement of the Authority, dated ______, 2025, with respect to the Bonds (the “Preliminary Official Statement”), certain provisions of the [printed/posted] official statement of the Authority, dated ______, 2025, with respect to the Bonds (the “Official Statement”), opinions of counsel to the Authority, the City and the Trustee, certificates of the Authority, the City, the Trustee and others, and such other documents, opinions and matters to the extent we deemed necessary to render the opinions set forth herein.
The opinions expressed herein are based on an analysis of existing laws, regulations, rulings and court decisions and cover certain matters not directly addressed by such authorities. Such opinions may be affected by actions taken or omitted or events occurring after the original delivery of the Bonds on the date hereof. We have not undertaken to determine, or to inform any person, whether any such actions are taken or omitted or events do occur or any other matter s come to our attention after the original delivery of the Bonds on the date hereof. We have assumed the genuineness of all documents and signatures provided to us and the due and legal execution and delivery of each such document by each party thereto other than the Authority and the City and that each such document constitutes a valid and binding agreement of such party. We have assumed, without undertaking to verify, the accuracy of the factual matters represented, warranted or certified in the documents, and of the legal conclusions Packet Pg. 229
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contained in the opinions, referred to in the third paragraph hereof. We have further assumed compliance with all covenants and agreements contained in such documents. In addition, we call attention to the fact that the r ights and obligations under the Bonds, the Trust Agreement, the Agreement, the Tax Certificate and the Purchase Contract and their enforceability may be subject to bankruptcy, insolvency, receivership, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors’ rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against governmental entities such as the A uthority and the City in the State of California .
We express no opinion with respect to any indemnification, contribution, liquidated damages, penalty (including any remedy deemed to constitute a penalty), right of set-off, arbitration, judicial reference, choice of law, choice of forum, choice of venue, non -exclusivity of remedies, waiver or severability provisions contained in the foregoing documents, nor do we express any opinions with respect to the state or quality of title to or interest in any real or personal property described in or as subject to the lien of the Trust Agreement or the Agreement or the accuracy or sufficiency of the description contained therein of, or the remedies available to enforce liens on, any such property. Finally, we undertake no responsibility for the accuracy, except as expressly set forth in numbered paragraph 3 below, completeness or fairness of the Preliminary Official Statement, the Official Statement or other offering material relating to the Bonds and express no view with respect thereto.
Based on and subject to the foregoing, and in reliance thereon, as of the date hereof, we are of the following opinions:
1. The Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Trust Agreement is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended.
2. The Purchase Contract has been duly executed and delivered by, and constitutes a valid and binding agreement of, the Authority and the City.
3. The statements contained in the Preliminary Official Statement and in the Official Statement under the captions “THE 2025A BONDS,” “SECURITY AND SOURCES OF PAYMENT FOR THE 2025A BONDS,” and “TAX MATTERS,” and in “APPENDIX D – SUMMARY OF CERTAIN PROVISIONS OF THE PRINCI PAL LEGAL DOCUMENTS,” and “APPENDIX F – PROPOSED FORM OF OPINION OF BOND COUNSEL,” excluding any material that may be treated as included under such captions by cross reference or reference to other documents or sources, insofar as such statements expressl y summarize certain provisions of the Trust Agreement, the Agreement, and certain matters addressed in the Bond Opinion, are accurate in all material respects.
This letter is furnished by us as bond counsel to the Authority. No attorney-client relationship has existed or exists between our firm and you in connection with the Bonds or by virtue of this letter.
We disclaim any obligation to update this letter. This letter is delivered to you as underwriter of the Bonds, is solely for your benefit as such u nderwriter in connection with the original delivery of the Bonds on the date hereof, and is not to be used, circulated, quoted or otherwise referred to or relied upon for any other purpose or by any other person. This letter is not intended to, and may not, be relied upon by owners of the Bonds or by any other party to whom it is not specifically addressed.
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Very truly yours,
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EXHIBIT B
FORM OF OPINION OF DISCLOSURE COUNSEL
[Closing Date], 2025
Redding Joint Powers Financing Authority
Redding, California
City of Redding
Redding, California
J.P. Morgan Securities LLC,
as Underwriter
San Francisco, California
Re: $____________ Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2025 Series A
Ladies and Gentlemen:
We have acted as Disclosure Counsel to the City of Redding (the “City”) in connection with the offering and sale of the Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2025 Series A in the aggregate principal amount of $_________ (the “Bonds”). The Bonds are being issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, consisting of Article 4, Chapter 5, Division 7, Title 1 of the Government Code of the State of California (commencing with Section 6584), and a Trust Agreement, dated as of April 1, 2025, by and between the Redding Joint Powers Financing Authority (the “Authority”) and U.S. Bank Trust Company, National Association, as trustee. The Bonds were sold by the Authority to J.P. Morgan Securities LLC, as underwriter (the “Underwriter”), and are being delivered on the date hereof, pursuant to a Purchase Contract, dated [BPA DATE], 2025 (the “Purc hase Contract”), among the Authority, the City and the Underwriter.
We have reviewed the Preliminary Official Statement dated [POS DATE], 2025 with respect to the Bonds (the “Preliminary Official Statement”) and the Official Statement dated [OS DATE], 2025 with respect to the Bonds (the “Official Statement”), the letters, certificates and opinions delivered pursuant to the Purchase Contract and otherwise in connection with the Bonds on the date hereof, and such other records, opinions and documents, and we have made such investigations of law and fact, as we have deemed appropriate as a basis for the conclusions hereinafter expressed. Unless otherwise indicated, capitalized terms used herein have the respective meanings given to such terms in the Official Statement.
We have assumed, but not independently verified, that the signatures on all documents, letters, opinions and certificates which we have examined are genuine, and that all documents submitted to us are authentic and were duly and properly executed by the pa rties thereto. We have also assumed, without undertaking to verify, the accuracy of the factual matters represented, warranted or certified in the documents, and of the legal conclusions contained in the opinions, referred to in the second paragraph hereof.
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The conclusions that are expressed herein are based on an analysis of existing laws, regulations, rulings and court decisions and cover certain matters not directly addressed by such authorities. Such conclusions may be affected by actions taken or omitted or events occurring after the date hereof. We have not undertaken to determine, or to inform you or any other person, whether any such actions are taken or omitted or whether such events do occur or any other matters come to our attention after the date hereof.
In our capacity as Disclosure Counsel, we have rendered certain legal advice and assistance to the City in connection with the preparation of the Preliminary Official Statement and the Official Statement.
Rendering such legal advice and assistanc e involved, among other things, discussions and inquiries concerning various legal matters, review of certain records, documents and proceedings, and participation in conferences with, among others, representatives of the Authority and the City, the City Attorney, Orrick, Herrington & Sutcliffe LLP, as Bond Counsel, PFM Financial Advisors LLC, as municipal advisor to the City, the Underwriter, Norton Rose Fulbright US LLP, as counsel to the Underwriter, and others, during which conferences the contents of the Preliminary Official Statement and the Official Statement and related matters were discussed. On the basis of the information made available to us in the course of the foregoing (but without having undertaken to determine or verify independently, or ass uming any responsibility for, the accuracy, completeness or fairness of any of the statements contained in the Preliminary Official Statement or the Official Statement), as of the date hereof no facts have come to the attention of the personnel in our firm directly involved in rendering legal advice and assistance in connection with the preparation of the Preliminary Official Statement and the Official Statement that causes us to believe that (a) the Preliminary Official Statement as of its date and as of t he date of the Purchase Contract contained any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading (excluding therefrom any financial, statistical or economic data or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion contained in the Preliminary Official Statement, information in the Appendices to the Preliminary Official Statement, information on the inside front cover of the Preliminary Official Statement, CUSIP numbers, information under the caption “UNDERWRITING,” any information that is incorporated by reference into the Preliminary Official Statement, any information about book-entry or The Depository Trust Company (“DTC”) included therein, or information permitted to be omitted therefrom pursuant to Rule 15c2 -12 promulgated under the Securities Exchange Act of 1934, as amended (“Rule 15c2-12”), as to all of which no opinion or view is expressed), or (b) the Official Statement as of its date or as of the date hereof contained or contains any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (excluding therefrom any financial, statistical or economic data or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion contained in the Official Statement, information in the Appendices to the Official Statement, information on the inside front cover of the Official Statement, CUSIP numbers, information under the caption “UNDERWRITING,” any information that is incorporated by reference into the Official Statement and any information about book-entry or DTC included therein, as to all of which we express no view). We advise you that, other than reviewing the various certificates and opinions required by the Purchase Contract regarding the Preliminary Official Statement and the Official Statement, we have not taken any steps since the date of the Official Statement to verify the accuracy of the statements contained in the Preliminary Official Statement or the Official Statement as of the date hereof.
In connection with the Bonds, we were not requested to, and did not, undertake an independent review on the Electronic Municipal Market Access website of the City ’s past compliance with any continuing disclosure undertaking of the City pursuant to Rule 15c2-12. Our services as Disclosure Counsel to the City did not involve the rendering of financial or other non-legal advice to the City or any other party to the transaction.
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By acceptance of this letter, you acknowledge that the preceding paragraph is neither a legal opinion nor a guarantee regarding the Official Statement; rather it is a statement of negative assurance regarding factual information that did not come to the attention of attorneys in our firm working on this matter during the limited activities that we performed as Disclosure Counsel concerning the Official Statement. Further, in accepting this letter the Authority and the City recognize and acknowledge that (i) the scope of those activities performed by us were inher ently limited and do not encompass all activities that the Authority and the City may be responsible to undertake in preparing the Official Statement, (ii) those activities performed by us relied substantially on representations, warranties, certifications and opinions made by representatives of the City and others, and are otherwise subject to the matters set forth in this letter, and (iii) while such statements of negative assurance are customarily given to underwriters of municipal bonds to assist them in discharging their responsibilities under federal securities laws, the responsibilities of the Authority and the City under those laws may differ from those of underwriters in material respects, and the preceding paragraph may not serve the same purpose or provide the same utility to them as it would to the underwriters.
The conclusions expressed in this letter are limited to matters governe d by the federal securities law of the United States, and we assume no responsibility with respect to the applicability or effect of the laws of any other jurisdiction.
We are furnishing this letter as Disclosure Counsel to the City, and not as counsel to the Underwriter. No attorney-client relationship has existed or exists between our firm and the Underwriter in connection with the Bonds or by virtue of this letter. We note that the Underwriter are represented by separate counsel retained by them in conne ction with the sale of the Bonds. This letter is delivered in connection with such transaction, and may not be used, circulated, quoted or otherwise referred to or relied upon by, any other person, firm, corporation or other entity, or filed with any gover nmental or other administrative agency for any purpose, without our prior written consent. Our engagement with respect to this matter terminates upon the delivery of this letter to you on the date hereof, and we have no obligation to update this letter.
Very truly yours,
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EXHIBIT C
FORM OF OPINION OF AUTHORITY COUNSEL
__________, 2025
J.P. Morgan Securities LLC
Los Angeles, California
$[PAR AMOUNT]
Redding Joint Powers Financing Authority
Electric System Revenue Bonds, 2025 Series A
Ladies and Gentlemen:
I have served as counsel to the Redding Joint Powers Financing Authority (the “Authority”), a joint exercise of powers authority organized and existing pursuant to Title 1, Division 7, Chapter 5 of the Government Code of the State of California, in connection with the issuance of $ [PAR AMOUNT] principal amount of Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2025 Series A (the “Bonds”). The Bonds are being issued pursuant to a Trust Agreement, dated as of April 1, 2025 (the “Trust Agreement ”), by and between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). I have examined the following documents:
(i) the 2025A Installment Sale Agreement , dated as of April 1, 2025 (the “2025A Installment Sale Agreement”), by and between the Authority and the City, (ii) the Trust Agreement, (iii) the Purchase Contract, dated [_____], 2025 (the “Purchase Contract”), by and among the Authority, J.P. Morgan Securities LLC and the City, (iv) the Preliminary Official Statement, dated [_____], 2025 (the “Preliminary Official Statement”) relating to the Bonds, and (v) the Official Statement, dated [_____], 2025 (the “Official Statement”) relating to the Bonds, and have made such other investigations of law and fact as I have deemed necessary to render the following opinion. Terms used herein and not defined shall have the meanings given such terms in the Purchase Contract.
It is my opinion that:
(1) The Authority is a joint exercise of powers agency duly organized and validly existing under and by virtue of the laws of the State of California. (2) The resolution of the Authority (the “Resolution”) approving and authorizing the execution and delivery of the Trust Agreement, the 2025A Installment Sale Agreement and the Purchase Contract and approving the delivery and distribution of the Preliminary Official Statement by the Authority and the execution, delivery and distribution of the Official Statement by the Authority was duly adopted at a regular meeting of the Governing Board of the Authority, which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout. The Resolution is in full force and effect and has not been amended, modified, supplemented or rescinded.
(3) The Authority has the necessary power and authority to execute and deliver the Trust Agreement, the 2025A Installment Sale Agreement and the Purchase Contract (collectively, the Packet Pg. 235
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“Authority Documents”).
(4) The Official Statement has been duly authorized, executed and delivered, and the Authority Documents have been duly authorized, executed and delivered by the Authority and, assuming due authorization, execution and delivery by and enforceability against the other parties thereto, the Authority Documents constitute legal, valid and binding agreements of the Authority, enforceable in accordance with their respect ive terms, subject in each case to laws relating to bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium, or other laws relating to or affecting the enforcement of creditors ’ rights generally and the application of equitable principles if equitable remedies are sought, including without limitation concepts of materiality, reasonableness, good faith and fair dealing, to the possible unavailability of specific performance or injunctive relief, and to the limitations on legal remedies against public agencies in the State of California.
(5) The execution and delivery of the Authority Documents by the Authority, and compliance by the Authority with the provisions thereof will not conflict with or constitute on the part of the Authority a breach of, or default under, the Joint Exercise of Powers Agreement, dated December __, 1988, by and between the City and the Housing Authority of the City of Redding, or any agreement or other instrument to which the Authority is a party or by which it is bound or any existing law, regulation, court order or decree to which the Authority is subject. (6) Except as described in the Preliminary Official Statement and the Official Statement, no approval, consent or authorization of any governmental or public agency, authority or person is required for the execution, delivery and performance by the Authority of the Authority Documents which has not been obtained, provided that no opinion is expressed with respect to qualification under Blue Sky or other state securities laws.
(7) Based upon my participation in the preparation of the Preliminary Official Statement and the Official Statement and without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Preliminary Official Statement and the Official Statement, nothing has come to my attention which would cause me to believe that (a) the Preliminary Official Statement as of its date and as of the date of the Purchase Contract contained any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading (excluding therefrom any financial, statistical or economic da ta or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion contained in the Preliminary Official Statement, information in the Appendices to the Preliminary Official Statement, information on the inside front cover of the Preliminary Official Statement, CUSIP numbers, information under the caption “UNDERWRITING,” any information that is incorporated by reference into the Preliminary Official Statement, any information about book -entry or The Depository Tr ust Company (“DTC”) included therein, or information permitted to be omitted therefrom pursuant to Rule 15c2 -12 promulgated under the Securities Exchange Act of 1934, as amended (“Rule 15c2 -12”), as to all of which no opinion or view is expressed), or (b) the Official Statement (excluding therefrom the financial statements and the statistical data and the information concerning The Depository Trust Company, the book-entry system, the information under the caption “UNDERWRITING” and in Appendix A and Appendices C through G thereto, as to which no opinion is expressed), as of its date and the date hereof, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
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(8) Except as described in the Preliminary Official Statement and the Official Statement, to the best of my knowledge, there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court, public board or body, pending or threatened against or affecting the Authority or any of its officers in their respective capacities as such (nor to the best of my knowledge, is there any basis therefor), which questions the creation, organization, existence or powers of the Authority or the title of its officers to their respective offices in connection with the transactions contemplated by the Authority Documents, the Preliminary Official Statement or the Official Statement, or the validity of the proceedings taken by the Authority in connection with the authorization, execution or delivery of the Bonds or the Authority Documents, or wherein any unfavorable decision, ruling or finding would materially adversely affect the transactions contemplated by the Authority Documents, the Preliminary Official Statement or the Official Statement, or which in any way would adversely affect the validity or enforceability of the Authority Documents, or, in any material respect, the ability of the Authority to perform its obligations thereunder. (9) The assignment of rights by the Authority to the Trustee pursuant to the Trust Agreement is effective to grant to the Trustee all of the rights granted thereby (including the right to receive payments paid by City under the 2025A Installment Sale Agreement) free and clear of any lien or security interest or other claim of any third party or entity claiming by or through the Authority other than as set forth in the Preliminary Official Statement and the Official Statement.
I am furnishing this letter solely for your benefit. This letter is not to be used, circulated, quoted or otherwise referred to for any other purpose and I have no obligation to update this letter.
Very truly yours,
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EXHIBIT D
FORM OF OPINION OF CITY ATTORNEY
__________, 2025
J.P. Morgan Securities LLC
Los Angeles, California
$[PAR AMOUNT]
Redding Joint Powers Financing Authority
Electric System Revenue Bonds, 2025 Series A
Ladies and Gentlemen:
I have served as counsel to the City of Redding (the “City”) in connection with the issuance of $[PAR AMOUNT] principal amount of Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2025 Series A (the “Bonds”). The Bonds are being issued pursuant to a Trust Agreement, dated as of April 1, 2025 (the “Trust Agreement”), by and between the Reddin g Joint Powers Financing Authority (the “Authority”) and U.S. Bank Trust Company, National Association , as trustee (the “Trustee”). I have examined the following documents: (i) the 2025A Installment Sale Agreement, dated as of April 1, 2025 (the “2025A Installment Sale Agreement”), by and between the Authority and the City, (ii) the Continuing Disclosure Agreement dated [_____], 2025 (the “Continuing Disclosure Agreement”), by and among the City and the Trustee, as Dissemination Agent, (iv) the Purchase Con tract, dated [_____], 2025 (the “Purchase Contract ”), by and among the Authority, J.P. Morgan Securities LLC and the City, (iv) the Preliminary Official Statement, dated [_____], 2025 (the “Preliminary Official Statement”) relating to the Bonds, and (v) the Official Statement, dated [_____], 2025 (the “Official Statement”) relating to the Bonds, and have made such other investigations of law and fact as I have deemed necessary to render the following opinion. Terms used herein and not defined shall have the meanings given such terms in the Purchase Contract.
It is my opinion that:
(1) The City is a general law city and municipal corporation, duly created, organized and existing under and pursuant to the Constitution and laws of the State of California and duly q ualified to furnish electric service within said City.
(2) The City has the authority and right to execute, deliver and perform the 2025A Installment Sale Agreement, the Continuing Disclosure Agreement and the Purchase Contract, and the City has complied with the provisions of applicable law in all matters relating to the transactions contemplated by the 2025A Installment Sale Agreement , the Continuing Disclosure Agreement and the Purchase Contract (the “City Documents”). (3) The resolution of the City (the “Resolution”) approving and authorizing the execution and delivery of the City Documents and approving the delivery and distribution of the Preliminary Official Statement and the execution, delivery and di stribution of the Official Statement was duly adopted at a regular meeting of the City Council, which was called and held pursuant to law and with Packet Pg. 238
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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all public notice required by law and at which a quorum was present and acting throughout. The Resolution is in full force and effect and has not been amended, modified, supplemented or rescinded. (4) The City Documents have been duly authorized, executed and delivered by the City and, assuming due authorization, execution and delivery by and enforceability against the other parties thereto, the City Documents constitute the legal, valid and binding agreements of the City, enforceable in accordance with their respective terms, subject in each case to the laws relating to bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium or other laws relating to or affecting the enforcement of creditors’ rights generally and the application of equitable principles if equitable remedies are sought, including without limitation concepts of materiality , reasonableness, good faith and fair dealing, to the possible unavailability of specific performance or injunctive relief, and to the limitations on legal remedies against public agencies in the State of California. (5) No approval, consent or authorization o f any governmental or public agency, authority or person is required for the execution, delivery and performance by the City of the City Documents, or the performance by the City of its obligations thereunder which has not been obtained.
Under the laws of the State of California, the City has the authority to determine, fix, impose and collect rates and charges for electric service and is not presently subject to the regulatory jurisdiction of any state, regional or local governmental regulatory authority. (6) The execution and delivery of the City Documents by the City and compliance with the provisions thereof will not conflict with or constitute a breach of or default under any instrument relating to the organization, existence or operation of the City, or co mmitment, agreement or other instrument to which the City is a party or by which it or its property is bound or affected, or any ruling, regulation, ordinance, judgment, order or decree to which the City or any of its officers in their respective capacities as such are subject or any provision of the laws of the State of California relating to the City and its affairs.
(7) Based upon my participation in the preparation of the Preliminary Official Statement and the Official Statement and without having undertake n to determine independently the accuracy, completeness or fairness of the statements contained in the Preliminary Official Statement or the Official Statement, nothing has come to my attention that would lead me to believe that (a) the Preliminary Official Statement as of its date and as of the date of the Purchase Contract contained any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading (excluding therefrom any financial, statistical or economic data or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion contained in the Preliminary Official Statement, information in the Appendices to the Preliminary Official Statement, information on the inside front cover of the Preliminary Official Statement, CUSIP numbers, information under the caption “UNDERWRITING,” any information that is incorporated by referenc e into the Preliminary Official Statement, any information about book -entry or The Depository Trust Company (“DTC”) included therein, or information permitted to be omitted therefrom pursuant to Rule 15c2 -12 promulgated under the Securities Exchange Act of 1934, as amended (“Rule 15c2 -12”), as to all of which no opinion or view is expressed), or (b) the Official Statement (excluding therefrom the financial statements, the statistical data and the information concerning The Depository Trust Company, the book-entry system, the information under the caption “UNDERWRITING” and in Appendix A and Appendices C through G thereto, as to which no opinion is expressed), as of its date and the date hereof, contained or contains any untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, Packet Pg. 239
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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not misleading.
(8) There is no action, suit, proceeding, inquiry or investigation at law or in equity, or before any court, public board or body, pending or, to the best of my knowledge, threatened against or affecting the City or any entity affiliated with the City or any of its officers in their respective capacities as such (nor to the best of my knowledge, is there any basis therefor) that questions the powers of the City referred to in paragraph 2 above or in connection with the transactions contemplated by the Preliminary Official Statemen and the Official Statement, or the validity of the proceedings taken by the City in connection with the authorization, execution or delivery of the City Documents, or wherein any unfavorable decision, ruling or finding would adversely affect the transactions contemplated by the City Documents, the Preliminary Official Statement or the Official Statement, or that, in any way, would adversely affect the validity or enforceability of the City Documents or, in any material respect, the ability of the City to perform its obligations under the City Documents.
Very truly yours,
Packet Pg. 240
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
Error! Unknown document property name.
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EXHIBIT E
[FORM OF UNDERWRITER ISSUE PRICE CERTIFICATE]
$[PAR AMOUNT]
Redding Joint Powers Financing Authority
Electric System Revenue Bonds, 2025 Series A
ISSUE PRICE CERTIFICATE
The undersigned, J.P. Morgan Securities LLC (the “Underwriter”), hereby certifies as set forth below with respect to the sale and issuance of the above -captioned obligations (the “Bonds”) of the Redding Joint Powers Financing Authority (the “Issuer”).
1. Sale of the General Rule Maturities . As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A.
2. Initial Offering Price of the Hold-the-Offering-Price Maturity. (a) The Underwriter has offered the Ho ld-the-Offering-Price Maturity to the Public for purchase at its initial offering price listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to th is certificate as Schedule B.
(b) As set forth in the Purchase Contract dated [_____], 2025, among the Underwriter and the Issuer, the Underwrit er agreed in writing on or prior to the Sale Date that, (i) for the Hold -the- Offering-Price Maturity, they would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the “hold-the-offering-price rule”), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any third -party distribution agreement shall contain the agreement of each broker -dealer who is a party to the third - party distribution agreement, to comply wit h the hold -the-offering-price rule. Pursuant to such agreement, the Underwriter has not offered or sold any of the Allocated Portion of the Hold -the- Offering-Price Maturity at a price that is higher than its Initial Offering Price for that Maturity of the Bonds during the Holding Period.
3. Defined Terms.
(a) Allocated Portion means that portion of the Hold-the-Offering Price Maturity that was retained by or allocated to the Underwriter, as identified in Schedule A. (b) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General Rule Maturities.”
(c) Hold-the-Offering-Price Maturity means that Maturity of the Bonds listed in Schedule A hereto as the “Hold-the-Offering-Price Maturity.” (d) Holding Period means, with respect to a Hold-the-Offering-Price Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Packet Pg. 241
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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Sale Date, or (ii) the date on which the Underwriter sold at least 10% of such Hold-the-Offering-Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Hold -the- Offering-Price Maturity.
(e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.
(f) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter.
The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (g) Sale Date means the first day on whic h there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is [_____], 2025. (h) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a third -party distribution agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limit ed to factual matters only. Nothing in this certificate represents the undersigned ’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The un dersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate with respect to the Bonds and with respect to compliance with the federal income tax rule s affecting the Bonds, and by Orrick, Herrington & Sutcliffe LLP in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.
IN WITNESS WHEREOF, the undersigned has executed this certificate on this 1st day of February, 2024.
J.P. MORGAN SECURITIES LLC
By:
Name:
Title:
Packet Pg. 242
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES AND
INITIAL OFFERING PRICES OF THE HOLD-THE-OFFERING-PRICE MATURITY (Attached)
Packet Pg. 243
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
(Attached)
Packet Pg. 244
Attachment: Purchase Contract (6.1--Joint Public Hearing re Issuance of Bonds for REU) Draft of 3/03/25
4858-6329-5853v4/200986-0002
CONTINUING DISCLOSURE AGREEMENT
This Continuing Disclosure Agreement (the “Disclosure Agreement”), dated [Closing Date], 2025, is executed and delivered by the City of Redding, California (the “City”) and U.S. Bank Trust Company, National Association in its capacity as dissemination agent (the “Dissemination Agent”) in connection with the issuance of $_________ aggregate principal amount of Redding Joint Powers Authority Electric System Revenue Bonds, 2025 Series A (the “Bonds”). The Bonds are being issued pursuant to a Trust Agreement, dated as of April 1, 2025 (the “Trust Agreement”), by and between the Redding Joint Powers Financing Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). In connection therewith the City and the Trustee covenant and agree as follows:
Section 1. Purpose of this Disclosure Agreement . This Disclosure Agreement is being executed and delivered by the City and the Dissemination Agent for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriters (as defined herein) in complying with Securities and Exchange Commission Rule 15c2-12(b)(5).
Section 2. Definitions. In addition to the definitions set forth above and in the Trust Agreement, which apply to any capitalized term used in this Disclosure Ag reement unless otherwise defined in this Section 2, the following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. “Beneficial Owner” shall mean any person who (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries); or (b) is treated as the owner of any Bonds for federal income tax purposes.
“Disclosure Representative” shall mean the City Manager or the Director of Finance of the City, or such other officer or employee as the City shall designate in writing t o the Trustee from time to time.
“Dissemination Agent” shall mean initially, U.S. Bank Trust Company, National Association, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the City and which has filed with the Trustee a written acceptance of such designation.
“Holder” shall mean either the registered owners of the Bonds or, if the Bonds are registered in the name of The Depository Trust Company or another recognized depository, any appli cable participant in such depository system.
“Listed Event” shall mean any of the events listed in Section 5(a) of this Disclosure Agreement. “MSRB” shall mean the Municipal Securities Rulemaking Board established pursuant to Section 15B(b)(1) of the Securities Exchange Act of 1934 or any other entity designated or authorized by the Securities and Exchange Commission to receive reports pursuant to the Rule. Until otherwise designated by the MSRB or the Securities and Exchange Commission, filings with the MS RB are to be made through the Electronic Municipal Market Access (EMMA) website of the MSRB, currently located at http://emma.msrb.org.
Packet Pg. 245
Attachment: Continuing Disclosure Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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“Official Statement” shall mean the Official Statement dated ___________, 2025, relating to the Bonds.
“Participating Underwriter” shall mean any of the original underwriters of the Bonds listed on the cover page of the Official Statement required to comply with the Rule in connection with offering of the Bonds.
“Rule” shall mean Rule 15c2-12(b)(5) adopted by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time.
“SEC” shall mean the United States Securities and Exchange Commission.
Section 3. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent to, not later than 270 days after the end of the City’s Fiscal Year (which Fiscal Year presently ends on June 30), commencing with the report for the 2024-25 Fiscal Year, provide to the MSRB an Annual Report which is consistent with the requirements of Section 4 of this Dis closure Agreement. The Annual Report must be submitted in electronic format, accompanied by such identifying information as prescribed by the MSRB. The Annual Report may be submitted as a single document or as separate documents comprising a package, and m ay cross-reference other information as provided in Section 4 of this Disclosure Agreement; provided that if the audited financial statements of the City’s Electric Utility Fund are not available by the date required above for the filing of the Annual Repo rt, the City shall submit the audited financial statements as soon thereafter as available. If the City’s Fiscal Year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5. (b) If the City is unable to provide to the MSRB an Annual Report by the date required in subsection (a), the City shall, or shall cause the Dissemination Agent to, send to the MSRB a notice in substantially the form attached hereto as Exhibit A. (c) The Dissemination Agent shall:
(i) determine the electronic filing address of, and then-current procedures for submitting Annual Reports to, the MSRB each year prior to the date for providing the Annual Report; and
(ii) file a report with the City and (if the Dissemination Agent is not the Trustee, the Trustee) certifying that the Annual Report has been provided to the MSRB pursuant to this Disclosure Agreement, and stating the date it was provided.
Section 4. Content of Annual Reports. The City’s Annual Report shall contain or include by reference the following categories or similar categories of information updated to incorporate information for the most recent Fiscal Year (the tables referred to below are those appearing in the Official Statement relating to the Bonds):
(i) The audited financial statements of the C ity’s Electric Utility Fund (which may be included as a component of the City’s city -wide audited financial statements) for the most recently completed Fiscal Year, prepared in accordance with generally accepted accounting principles for governmental enter prises as prescribed from time to time by any regulatory body with jurisdiction over the City and by the Packet Pg. 246
Attachment: Continuing Disclosure Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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Governmental Accounting Standards Board. If the City’s Electric Utility Enterprise Fund audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the audited financial statements, and the audited financial statements shall be filed in the same manner a s the Annual Report when they become available.
(ii) Updated information comparable to the information in the table entitled “CITY OF REDDING ELECTRIC UTILITY DEPARTMENT POWER SUPPLY RESOURCES” as it appears in the Official Statement;
(iii) Updated information comparable to the information in the table entitled “CITY OF REDDING ELECTRIC UTILITY DEPARTMENT CUSTOMERS, SALES, REVENUES AND DEMAND” as it appears in the Official Statement; (iv) Updated information comparable to the information in the table entitled “CITY OF REDD ING ELECTRIC UTILITY DEPARTMENT SUMMARY OF OPERATING RESULTS” as it appears in the Official Statement; and (v) Updated information comparable to the information in the table entitled “CITY OF REDDING ELECTRIC UTILITY DEPARTMENT OUTSTANDING DEBT OF JOINT POWERS AGENCIES” as it appears in the Official Statement.
Financial and operating information relating to the City referenced in items (ii)-(v) above may be updated from time to time, and such updates may involve displaying data in a different format or eliminating data that is no longer material.
Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which have been submitted to the MSRB or the SEC. If any document included by reference is a final official statement, it must be available from the MSRB. The City shall clearly identify each such other document so included by reference.
Section 5. Reporting of Listed Events.
(a) Pursuant to the provisions of this Section 5, upon the occurrence of any of the following events (in each case to the extent applicable) with respect to the Bonds, the City shall give, or cause to be given by so notifying the Dissemination Agent in writing and instructing the Dissemination Agent to give, notice of the occurrence of such event, in each case, pursuant to Section 5(c) hereof:
1. principal or interest payment delinquencies;
2. non-payment related defaults, if material;
3. unscheduled draws on the debt service reserves reflecting financial difficulties;
4. unscheduled draws on the credit enhancements reflecting financial difficulties;
5. substitution of credit or liquidity providers, or their failure to perform; Packet Pg. 247
Attachment: Continuing Disclosure Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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6. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds;
7. modifications to the rights of the Bondholders, if material;
8. optional, contingent or unscheduled calls, if material, and tender offers;
9. defeasances;
10. release, substitution or sale of property securing repayment of the Bonds, if material;
11. rating changes;
12. bankruptcy, insolvency, receivership or similar proceedings of the City, which shall occur as described below;
13. the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City’s Electric System other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;
14. appointment of a succ essor or additional trustee or the change of name of a trustee, if material;
15. incurrence of a Financial Obligation of the City with respect to the Electric System, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the City with respect to the Electric System, any of which affects Holders of the Bonds, if material; or
16. default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the City with respect to the Electric System, any of which reflect financial difficulties.
For these purposes, (i) any event described in item 12 of this Section 5(a) is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City or its Electric System, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City or its Electric System; and (ii) the City intends to comply with the provisions hereof for the Listed Events described in subparagraphs (15) and (16) of this Section 5(a), and Packet Pg. 248
Attachment: Continuing Disclosure Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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the definition of the “Financial Obligation” in Section 2, with reference to the Rule, any other applicable federal securities laws and guidance provided by the SEC in its Release No. 34 -83885 dated August 20, 2018 (the “2018 Release”), any further amendments or written guidance provided by the SEC or its staff with respect to the amendments to the Rule effected by the 2018 Release. (b) Upon receipt of notice from the City and instruction by the City to report the occurrence of any Listed Event, the Dissemination Agent shall provide notice thereof to the MSRB in accordance with Section 5(c) hereof. In the event the Dissemination Agent shall obtain actual knowledge of the occurrence of any of the Listed Events, the Dissemination Agent shall, immediately after obtaining such knowledge, contact the Disclosure Representative, inform such per son of the event, and request that the City promptly notify the Dissemination Agent in writing whether or not to report the event pursuant to Section 5(c). For purposes of this Disclosure Agreement, “actual knowledge” of the occurrence of such Listed Event shall mean actual knowledge by the Dissemination Agent, if other than the Trustee, and if the Dissemination Agent is the Trustee, then by the officer at the corporate trust office of the Trustee with regular responsibility for the administration of matter s related to the Trust Agreement. The Dissemination Agent shall have no responsibility to determine the materiality, if applicable, of any of the Listed Events. (c) The City, or the Dissemination Agent, if the Dissemination Agent has been instructed by the City to report the occurrence of a Listed Event pursuant to Section 5(b), shall file a notice of the occurrence of any of the events listed in Section 5(a) hereof with the MSRB in a timely manner not more than ten (10) business days after the occurrence of the event.
Section 6. Termination of Reporting Obligation . The City’s obligations under this Disclosure Agreement shall terminate with respect to all Bonds upon the maturity, legal defeasance, prior redemption or payment in full of all of the Bonds and with respect to any Bonds upon the maturity, defeasance, prior redemption or payment in full of such Bonds.
Section 7. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agr eement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. If at any time there is not any other designated Dissemination Agent, the Trustee, upon notice from the City, shall be the Dissemination Agent. The initial Dissemination Agent shall be the Trustee.
The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the City pursuant to this Disclosure Agreement. The Dissemination Agent shall recei ve compensation for the services provided pursuant to this Disclosure Agreement.
Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the City and the Dissemination Agent may amend this Disclosure Agreement, (and, to the extent that any such amendment does not materially change or increase its obligations hereunder, the Dissemination Agent shall agree to any amendment so requested by the City), and any provision of this Disclosure Agreement may be waived; provided, that the following conditions are satisfied:
(a) If the amendment or waiver relates to the provisions of Section 3(a), Section 4 or Section 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; Packet Pg. 249
Attachment: Continuing Disclosure Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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(b) The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) The amendment or waiver does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Agreement, the City shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event under Section 5(c), and (ii) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting princip les and those prepared on the basis of the former accounting principles.
Section 9. Filings with the MSRB. All information, operating data, financial statements, notices and other documents provided to the MSRB in accordance with this Disclosure Agreement shall be pr ovided in an electronic format prescribed by the MSRB and shall be accompanied by identifying information as prescribed by the MSRB.
Section 10. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the City from disseminating any oth er information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the City shall have no obliga tion under this Disclosure Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 11. Default. In the event of a failure of the City or the Dissemination Agent to comply with any provision of this Disclosure Agreement, the Trustee may (and, at the request of any Participating Underwriter or the Holders of at least 25% of the aggregate principal amount of Outstanding Bonds and upon provision of indemnification satisfactory to the Trustee, shall), or any Holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City or the Dissemination Agent, as the case may be, to comply with it s obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Trust Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of the City or the Dissemination Agent to comply with this Disclosure Agreement shall be an action to compel performance hereunder.
Section 12. Duties, Immunities and Liabilities of Trustee and Dissemination Agent .
Section 5.02 of the Trust Agreement is hereby made applicable to this Disclosure Agreement as if the Disclosure Agreement were (solely for this purpose) contained in the Trust Agreement. The Packet Pg. 250
Attachment: Continuing Disclosure Agreement (6.1--Joint Public Hearing re Issuance of Bonds for REU)
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Dissemination Agent shall be entitled to the protections and limitations on liability afforded to the Trustee thereunder. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabili ties which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding any loss, expense and liabi lities due to the Dissemination Agent’s negligence or willful misconduct. The obligations of the City under this Section 12 shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.
Section 13. Notices. Any notices or communications to or among any of the parties to this Disclosure Agreement may be given as follows:
To the City: To the Dissemination Agent:
City of Redding
777 Cypress Avenue
Redding, California 96001
Attention: Finance Officer
Phone: (530) 225-4087
Fax: (530) 225-4324
U.S. Bank Trust Company, National Association
One California Street, Suite 1000
San Francisco, California 94111
Attention: Global Corporate Trust Services
Phone: (415) 677-3597
Fax: (415) 677-3769
Section 14. Beneficiaries. This Disclosure Agreement shall inure so lely to the benefit of the City, the Trustee, the Dissemination Agent, the Participating Underwriters and the Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity.
[Remainder of page intentionally left blank.]
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Section 15. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.
CITY OF REDDING, CALIFORNIA
By
City Manager
U.S. BANK TRUST COMPANY,
NATIONAL ASSOCIATION,
as Dissemination Agent
By
Authorized Officer
ACKNOWLEDGED:
U.S. BANK TRUST COMPANY,
NATIONAL ASSOCIATION, as Trustee
By
Authorized Officer
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A-1
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EXHIBIT A
NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: REDDING JOINT POWERS FINANCING AUTHORITY Name of Bond Issue: ELECTRIC SYSTEM REVENUE BONDS, 2025 SERIES A Date of Issuance: _________, 2025
NOTICE IS HEREBY GIVEN that the City of Redding, California (the “City”) has not provided an Annual Report with respect to the above-named Bonds as required by Section 5.15 of the 2025 Installment Sale Agreement, dated as of April 1, 2025, by and between the City and the Redding Joint Powers Financing Authority, and the Continuing Disclosure Agreement, dated [Closing Date], 2025, by and between the City and U.S. Bank Trust Company, National Association, as Dissemination Agent. The City anticipates that the Annual Report will be filed by ___________, 20__.
Dated: ______________, 20__
U.S. BANK TRUST COMPANY, NATIONAL
ASSOCIATION, as Dissemination Agent on behalf of
the City of Redding
By:
Authorized Officer
cc: City of Redding, California
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PRELIMINARY OFFICIAL STATEMENT DATED __________, 2025
NEW ISSUE – FULL BOOK-ENTRY ONLY RATING: Fitch: “___” (See “RATING” herein.)
In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Authority , based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and comp liance with certain covenants, interest on the 2025A Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 and is exempt from State of California personal income taxes. In the further opinion of Bond Counsel, interest on the 2025A Bonds is not a specific preference item for purposes of the federal individual alternative minimum tax.
Bond Counsel observes that interest on the 2025A Bonds included in adjusted financial statement income of certain corporations is not excluded from the federal corporate alternative minimum tax. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the 2025A Bonds. See “TAX MATTERS” herein.
$___________*
REDDING JOINT POWERS FINANCING AUTHORITY
Electric System Revenue Bonds, 2025 Series A
Dated: Date of Delivery Due: June 1, as shown on the inside cover This cover page contains certain information for general reference only. It is not intended to be a summary of the security o r terms of this issue. Investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision. Capitalized terms used on this cover page and not otherwise defined shall have the meanings set forth herein.
The Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2025 Series A (the “ 2025A Bonds”) are being issued pursuant to a Trust Agreement, dated as of April 1, 2025 (the “Trust Agreement”), by and between the Redding Joint Powers Financing Authority (the “Authority”) and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). The 2025A Bonds are being issued for the purpose of (i) financing costs of additions, betterments, extensions and improvements to the Elec tric System of the City of Redding, California (the “City”) and (ii) paying costs of issuance of the 2025A Bonds, as further described herein.
See “PLAN OF FINANCE” herein.
The 2025A Bonds will be dated their date of delivery. Interest on the 2025A Bonds will be payable on June 1 and December 1 of each year, commencing June 1, 2025. The 2025A Bond s are being delivered in fully registered form and, when delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the 2025A Bonds. Individual purchases will be made in book -entry form only, in denominations of $5,000 principal amount or any integral multiple thereof. Payments of principal of and interest on, the 2025A Bonds are payable by the Trustee to DTC, which is obligated in turn to remit such principal and interest to its DTC Participants for subsequent disbursement t o the beneficial owners of the 2025A Bonds, as described herein.
The 2025A Bonds are subject to redemption prior to maturity as described herein.
The 2025A Bonds are limited obligations of the Authority payable solely from Revenues of the Authority, consisting primarily of certain installment sale payments (the “2025A Installment Sale Payments”) to be made by the City to the Authority pursuant to a 2025A Installment Sale Agreement , dated as of April 1, 2025 (the “2025A Installment Sale Agreement ”), by and between the City and the Authority. The 2025A Installment Sale Payments to be made by the City under the 2025A Installment Sale Agreement are payable from, and secured solely by, a pledge of and lien on Net Revenues of the City’s Electric System and moneys in the City’s Elec tric Revenue Fund. The 2025A Installment Sale Paymen ts will be payable on parity with the City’s outstanding and future Parity Obligations. As of January 1, 2025, the City had outstanding bonds and installment sale payments payable from Net Revenues of the Electric System, all constituting Parity Obligations, in the aggregate principal amount of $ 82.72 million. The City may hereafter issue or incur additional Parity Obligations, as described herein. Maintenance and Operation Costs of the Electric System (includin g certain take-or-pay obligations under contracts with joint powers agencies) are payable by the City from Revenues of the Electric System prior to the payment of the 2025A Installment Sale Payments and other Parity Obligations.
The 2025A Bonds are limited obligations of the Authority and are payable solely from the Revenues and other funds pledged therefor as provided in the Trust Agreement. The 2025A Bonds are not a debt of the State of California or any of its political subdivisions and neither the State of California nor any of its political subdiv isions is liable thereon, nor in any event shall the 2025A Bonds be payable out of any funds or properties other than those of the Authority as provided in the Trust Agreement.
The 2025A Bonds do not constitute an indebtedness within the meaning of any con stitutional or statutory debt limitation or restriction. The Authority has no taxing power.
MATURITY SCHEDULE
(see inside front cover)
The 2025A Bonds will be offered when, as and if issued and received by the Underwriter, subject to the approval of legal ity by Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Authority, and certain other conditions. Certain legal matters will be passed upon for the Authority and the City by the City Attorney of the City of Redding, and for the Underwriter by Norton Rose Fulbright US LLP. Stradling Yocca Carlson & Rauth LLP is acting as Disclosure Counsel to the City in connection with the 2025A Bonds. It is expected that the 2025A Bonds will be available for delivery through the DTC book -entry system in New York, New York by Fast Automated Securities Transfer (FAST) on or about April ___, 2025.
J.P. Morgan
Dated: __________, 2025
_____________________
* Preliminary, subject to change.
This Preliminary Official Statement and the information contained herein are subject to completion and amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, qualification or filing under the securities laws of any such jurisdiction.
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$____________*
REDDING JOINT POWERS FINANCING AUTHORITY
Electric System Revenue Bonds, 2025 Series A
MATURITY SCHEDULE*
$________ Serial 2025A Bonds
Maturity Date
(June 1)
Principal
Amount
Interest
Rate
Price or
Yield
CUSIP†
(Base No. 75728T)
$_________ ____% Term 2025A Bonds due June 1, 20__, Price or Yield ______% ; CUSIP†: 75728T___
___________________
* Preliminary, subject to change.
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein are provided by CUSIP Global Services, managed by FactSet Research Systems Inc. on behalf of the American Bankers Association. CUSIP numbers have been assigned by an in dependent company not affiliated with the Authority, the City or the Underwriter and are included solely for the convenience of the holders of the 2025A Bonds. None of the Authority, the City or the Underwriter is responsible for the selection or use of th ese CUSIP numbers and no representation is made as to their correctness on the 2025A Bonds or as indicated above. The CUSIP number for a specific maturity is subject to being changed after the issuance of the 2025A Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of the 2025A Bonds.
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CITY OF REDDING
777 Cypress Avenue
Redding, California 96001
CITY COUNCIL AND
AUTHORITY BOARD OF DIRECTORS
Jack Munns, Mayor
Mike Littau, Vice Mayor
Tenessa Audette, Council Member
Dr. Paul Dhanuka, Council Member
Erin Resner, Council Member
CITY OFFICIALS
Barry Tippin
City Manager
Christian Curtis
City Attorney
Nicholas Zettel
Director of Electric Utility
Joseph Bowers
Assistant Electric Utility Director, Resources
SPECIAL SERVICES
Orrick, Herrington & Sutcliffe LLP
San Francisco, California
Bond Counsel
Stradling Yocca Carlson & Rauth LLP
Newport Beach, California
Disclosure Counsel
PFM Financial Advisors LLC
Los Angeles, California
Municipal Advisor
U.S. Bank Trust Company, National Association
San Francisco, California
Trustee
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No dealer, broker, salesperson or other person has been authorized by the Authority, the City or the Underwriter to give any information or to make any representations other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the 2025A Bonds in any jurisdiction in which it is unlawful to make such offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers of the 2025A Bonds.
The information set forth herein has been furnished by the Authority, the City and other sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by, the Underwriter. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Authority, the City or the Electric System since the date hereof. This Official Statement, including any supplement or amendment hereto, is intended to be deposited with the Municipal Securities Rulemaking Board through the Electronic Municipal Market Access (EMMA) website.
The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applicable to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.
IN CONNECTION WITH THE OFFERING OF THE 2025A BONDS THE UNDERWRITER
MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE 2025A BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.
__________________________
CAUTIONARY STATEMENTS REGARDING
FORWARD-LOOKING STATEMENTS IN
THIS OFFICIAL STATEMENT
Certain statements included or incorporated by reference in this Official Statement and the Appendices hereto constitute “forward-looking statements.” Such state ments are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “budget” or other similar words. Such forward -looking statements include, but are not limited to, certain statements contained in the information under the capti ons “THE ELECTRIC SYSTEM,” “RATE REGULATION,” “and “CERTAIN FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY” in this Official Statement. Forward -looking statements in this Official Statement are subject to risks and uncertainties, including particularly th ose relating to natural gas costs and availability, wholesale and retail electric energy and capacity prices, federal and state legislation and regulations, the impact of weather on the energy market, industry restructuring, changes in consumer electricity demand and use patterns, and the economy of the service area of the City’s Electric System.
The achievement of any results or the realization of other expectations contained in such forward - looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Authority and the City do not plan to issue any updates or revisions to those forward-looking statements.
The City maintains a website. However, the information presented therein is not part of this Official Statement and should not be relied upon in making investment decisions with respect t o the 2025A Bonds.
References to website addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s convenience. Unless specified otherwise, such websites and the information or links contained therein are not incorporated into, and are not part of, this Official Statement for purposes of, and as that term is defined in, S.E.C. Rule 15c2-12(b)(5).
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TABLE OF CONTENTS
Page
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INTRODUCTION ................................................................................................................................. 1 Purpose; Authority for Issuance ......................................................................................................... 1 The Authority ..................................................................................................................................... 1 The City ............................................................................................................................................. 2 Security and Sources of Payment for the 2025A Bonds .................................................................... 2 Rate Covenant .................................................................................................................................... 3 Continuing Disclosure ....................................................................................................................... 4 Other Matters ..................................................................................................................................... 4 PLAN OF FINANCE ............................................................................................................................. 4 General ............................................................................................................................................... 4 Financing of Improvements to the Electric System ........................................................................... 4 ESTIMATED SOURCES AND USES OF FUNDS ............................................................................. 5 THE 2025A BONDS ............................................................................................................................. 5 General ............................................................................................................................................... 5 Redemption ........................................................................................................................................ 6 SECURITY AND SOURCES OF PAYMENT FOR THE 2025A BONDS ......................................... 7 Pledge Under the Trust Agreement .................................................................................................... 7 The 2025A Installment Sale Agreement ............................................................................................ 8 No Debt Service Reserve Fund ........................................................................................................ 11 Outstanding Electric System Revenue Obligations ......................................................................... 11 Additional Electric System Revenue Obligations ............................................................................ 12 Investment of Funds ......................................................................................................................... 13 Limitations on Remedies ................................................................................................................. 13 THE AUTHORITY ............................................................................................................................. 14 THE ELECTRIC SYSTEM ................................................................................................................. 15 General ............................................................................................................................................. 15 Management ..................................................................................................................................... 15 Power Supply Resources .................................................................................................................. 15 Generating Facilities ........................................................................................................................ 17 Joint Powers Agency Resources – Purchased Power, Generation and Transmission...................... 17 Purchased Power .............................................................................................................................. 21 Renewable Resources ...................................................................................................................... 23 Energy Efficiency Programs ............................................................................................................ 25 Future Power Supply Resources ...................................................................................................... 25 Fuel Supply ...................................................................................................................................... 26 Interconnections, Transmission and Distribution ............................................................................ 27 Wholesale Energy Trading .............................................................................................................. 28 Risk Management Program .............................................................................................................. 28 Cybersecurity Measures ................................................................................................................... 28 Wildfire Mitigation Measures .......................................................................................................... 29 Insurance .......................................................................................................................................... 29 Rates and Charges ............................................................................................................................ 30 Comparison of Selected Monthly Residential Electric Bills ........................................................... 31 Major Customers .............................................................................................................................. 32 Customers, Sales, Revenues and Demand ....................................................................................... 33 Transfers to the General Fund .......................................................................................................... 35 Packet Pg. 258
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TABLE OF CONTENTS
(continued)
Page
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Capital Requirements ....................................................................................................................... 36 Employees ........................................................................................................................................ 36 Indebtedness ..................................................................................................................................... 40 Cash Reserves .................................................................................................................................. 43 City Investment Policy ..................................................................................................................... 44 Summary of Condensed Operating Results and Fund Net Position Information ............................ 45 Management’s Discussion of Summary of Fiscal Year 2023-24 Operating Results ....................... 47 Litigation Affecting the Electric System ......................................................................................... 48 RATE REGULATION ........................................................................................................................ 48 CERTAIN FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY................................ 49 Federal Energy and Environmental Policies and Legislation .......................................................... 49 State Legislation and Regulatory Proceedings ................................................................................. 52 Changing Laws and Requirements Generally .................................................................................. 58 General Economic Conditions ......................................................................................................... 59 Cybersecurity Risks ......................................................................................................................... 59 Global Health Emergencies ............................................................................................................. 59 Other Factors .................................................................................................................................... 60 CONSTITUTIONAL LIMITATIONS IN CALIFORNIA AFFECTING FEES AND CHARGES ... 61 Proposition 62 .................................................................................................................................. 61 Proposition 218 ................................................................................................................................ 61 Proposition 26 .................................................................................................................................. 62 Other Initiatives ............................................................................................................................... 62 TAX MATTERS .................................................................................................................................. 63 LITIGATION ....................................................................................................................................... 65 RATING .............................................................................................................................................. 65 CONTINUING DISCLOSURE ........................................................................................................... 65 UNDERWRITING .............................................................................................................................. 66 CERTAIN RELATIONSHIPS ............................................................................................................ 67 CERTAIN LEGAL MATTERS........................................................................................................... 67 MUNICIPAL ADVISOR ..................................................................................................................... 67 AUDITED FINANCIAL STATEMENTS .......................................................................................... 67 EXECUTION AND DELIVERY ........................................................................................................ 69
APPENDIX A AUDITED FINANCIAL STATEMENTS OF THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2024 ............................................................. A-1 APPENDIX B CERTAIN INFORMATION CONCERNING THE CITY OF REDDING .......... B-1 APPENDIX C BOOK-ENTRY ONLY SYSTEM ........................................................................ C-1
APPENDIX D SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS ........................................................................................ D-1 APPENDIX E PROPOSED FORM OF CONTINUING DISCLOSURE AGREEMENT ........... E-1 APPENDIX F PROPOSED FORM OF OPINION OF BOND COUNSEL ................................. F-1 APPENDIX G DEBT SERVICE SCHEDULE ............................................................................. G-1 Packet Pg. 259
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OFFICIAL STATEMENT
$___________*
REDDING JOINT POWERS FINANCING AUTHORITY
Electric System Revenue Bonds, 2025 Series A
_________________________
INTRODUCTION
This Introduction is subject in all respects to the more complete information contained elsewhere in this Official Statement, and the offering of the 2025A Bonds to potential investors is made only by means of the entire Official Statement. Terms used in this Introduction or otherwise in this Official Statement and not otherwise defined herein shall have the respective meanings assigned to them in Appendix D hereto.
Purpose; Authority for Issuance
The purpose of this Official Statement, which includes the cover page and appendices hereto, is to set forth certain information concerning the issuance and sale of $____________ * principal amount of Redding Joint Powers Financing Authority Electric System Reven ue Bonds, 2025 Series A (the “ 2025A Bonds”). The 2025A Bonds are being issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, consisting of Article 4, Chapter 5, Division 7, Title 1 of the Government Code of the State of California (commending with Section 6584) (the “Act”), and a Trust Agreement, dated as of April 1, 2025 (the “Trust Agreement”), by and between the Redding Joint Powers Financing Authority (the “Authority”) and U.S.
Bank Trust Company, National Association, as trustee (the “Trustee”).
The 2025A Bonds are being issued for the purpose of (i) financing costs of additions, betterments, extensions and improvements to the Electric System (as hereinafter defined) of the City of Redding, California (the “City”) and (ii) paying costs of issuance of the 2025A Bonds, as further described herein.
See “PLAN OF FINANCE.”
The Authority
The Authority was created in December 1988 by a joint exercise of powers agreement ( as subsequently amended, the “Joint Exercise of Powers Agreement”) which was entered into between the City and the Housing Authority of the City of Redding (the “Housing Authority”), pursuant to the Joint Exercise of Powers Act, Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California. The Authority was created for the purpose of facilitating the financing of public capital improvements in accordance with the Joint Exercise of Powers Act. Pursuant to the Joint Exercise of Powers Agreement, the Authority is empowered to, among other things, cause the acqui sition of equipment and other personal property for the use of the City. The Joint Exercise of Powers Agreement further provides that the Authority will fulfill the purposes of the Joint Exercise of Powers Agreement by undertaking the sale and issuance of bonds in accordance with the Act. The members of the City Council of the City serve as the members of the governing board of the Authority. See “THE AUTHORITY.”
* Preliminary, subject to change.
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The City
The City is a general law city of the State of California, comprising approximately 60 square miles, located at the northern end of the Sacramento Valley, approximately 160 miles north of Sacramento and 230 miles northeast of San Francisco. As a general law city, the City has the power to furnish electric utility service to its inhabitants. In connection therewith, the City has the powers of eminent domain, to contract, to construct works, to fix rates and charges for commodities or services furnished and to incur indebtedness.
To provide electric service within its service area (which is co terminous with the City’s corporate city boundaries), the City owns and operates an electric system (the “Electric System” as more fully defined in Appendix D) that includes generation, transmission and distribution facilities. The City also purchases power and transmission service from others. For the Fiscal Year ended June 30, 2024, the City Electric System served approximately 45,413 customer accounts, had total sales of approximately 737 million kWh and had a peak demand of 234.2 MW. See “THE ELECTRIC SYSTEM” and “APPENDIX B – CERTAIN INFORMATION CONCERNING THE CITY OF REDDING.”
Security and Sources of Payment for the 2025A Bonds
The 2025A Bonds are limited obligations of the Authority payable solely from Revenues of the Authority, consisting primarily o f certain installment sale payments (the “ 2025A Installment Sale Payments”) to be made by the City to the Authority pursuant to a 2025A Installment Sale Agreement, dated as of April 1, 2025 (the “2025A Installment Sale Agreement”), by and between the City and the Authority.
Pursuant to the 2025A Installment Sale Agreement, the Authority will sell, assign and transfer to the City, and the City will purchase fr om the Authority, all right, title and interest in certain additions, betterments, extensions and improvements to the City’s Electric System, consisting of those facilities and improvements being financed with proceeds of the 2025A Bonds, as described in the 2025A Installment Sale Agreement (collectively, the “ 2025A Electric System Project ”). Pursuant to the 2025A Installment Sale Agreement, the City is obligated to make 2025A Installment Sale Payments in payment of the Purchase Price of the 2025A Electric System Project . The Purchase Price to be paid by the City to the Authority under the 2025A Installment Sale Agreement is equal to the sum of the principal amount of the 2025A Bonds plus the interest to accrue on such principal amount over the term thereof, subject to prepayment of the 2025A Installment Sale Payments as provided in the 2025A Installment S ale Agreement. See also “PLAN OF FINANCE.”
The obligation of the City to make payments under the 2025A Installment Sale Agreement is a special obligation payable solely from Net Revenues (as defined in the 2025 Instalment Sale Agreement) of the City’s Electric System and moneys in the City’s Electric Revenue Fund. Such special obligation of the City to make the 2025A Installment Sale Payments is absolute and unconditional. The pledge of and lien on Net Revenues of the Electric System and amounts on deposit in the Electric Revenue Fund for the payment of the 2025A Bonds is on parity with and equal to the charge and lien upon such Net Revenues and amounts on deposit in the Electric Revenue Fund securing all Parity Obligations (hereinafter defined) heretofore or hereafter issued or incurred by the City as described herein.
As of January 1, 20 25, the City had outstanding Parity Obligations in the aggregate principal amount of approximately $82.72 million, comprised of (i) installment sale payments related to the Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2015 Series A (the “2015 RJPFA Electric System Bonds”) outstanding in the principal amount of $28.44 million, (ii) City of Redding Electric System Refunding Revenue Bonds, Series 2017 (the “2017 City Electric System Refunding Bonds”) outstanding in the principal amount of $32.85 million, and (iii) City of Redding Electric System Refunding Revenue Bonds, Series 2018 (the “2018 City Electric System Refunding Bonds”) outstanding in the principal amount of $21.43 million.
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The City may issue or incur additional obligations payable from Net Revenues and moneys on deposit in the Electric Revenue Fund on a parity with the 2025A Bonds, the installment sale payments relating to the 2015 RJPFA Electric System Bonds, the 2017 City Electric System Refunding Bonds, and the 2018 City Electric System Refunding Bonds, subject to the terms and conditions set forth in the 2025A Installment Sale Agreement. All obligations heretofore or hereafter issued or incurred by the City the payment of which constitutes a charge and lien on the Net Revenues and moneys in the Electric Revenue Fund equal to and on a parity with the charge and lien on the N et Revenues and moneys in the Electric Revenue Fund for the payment of the 2025A Bonds are herein referred to as “Parity Obligations.” The City has, and may in the future, also issue or incur obligations the payments under and pursuant to which are payable from Net Revenues, subject and subordinate to the 2025A Installment Sale Payments and to all other Parity Obligations (“Subordinate Obligations”). The City and the Authority have entered into an amended and restated revolving credit agreement, dated as of May 1, 2023 (the “Revolving Credit Agreement”) with U.S. Bank National Association (the “Credit Bank”), under which the Credit Bank has agreed to advance funds to the Authority, from time to time, in an amount up to $25.0 million, for the benefit of the C ity Electric System. The term of the Revolving Credit Agreement extends to October 29, 2025, unless extended or earlier terminated pursuant to its terms. Borrowings under the Revolving Credit Agreement are payable from, and secured by, certain installment sale payments required to be made by the City to the Authority under the terms of a Subordinate Installment Sale Agreement, dated as of October 1, 2020 (the “Subordinate Installment Sale Agreement”), by and between the City and the Authority, the installment sale payments to be made by the City under which Subordinate Installment Sale Agreement constitute Subordinate Obligations. As of January 1, 2025, there were no outstanding borrowings by the City under the Revolving Credit Agreement.
As of January 1, 2025, the City had outstanding approximately $21.0 million principal amount of take-or-pay obligations related to debt of the joint powers agencies in which it participates, which obligations constitute Maintenance and Operation Costs of the Electric System and are payable from Revenues of the Electric System prior to the 2025A Bonds and other Parity Obligations. The City may incur additional obligations pursuant to its agreements with such joint power agencies in which it now, or in the future may, participa te or enter into other contacts or leases for the purchase of facilities, properties, structures or works or electric output, capacity or other electrical services for the Electric System which are Maintenance and Operation Costs of the Electric System, pa yable from Revenues of the Electric System prior to the 2025A Bonds and other Parity Obligations.
See “SECURITY AND SOURCES OF PAYMENT FOR THE 2025A BONDS – Outstanding Electric System Revenue Obligations” and “– Additional Parity Obligations.” The obligation of the City to make 2025A Installment Sale Payments does not constitute a debt of the City, the State of California or any of its political subdivisions within the meaning of any constitutional or statutory debt limitation or restriction. Th e general fund of the City is not liable, and neither the faith and credit nor the taxing power of the City is pledged, for the payment of the 2025A Installment Sale Payments or the performance or satisfaction of any other obligations of the City under the 2025A Installment Sale Agreement.
Rate Covenant
Pursuant to the 2025A Installment Sale Agreement, the City has covenanted to fix, prescribe and collect rates and charges for the services, facilities and electricity of the Electric System during each Fiscal Year which will be at least sufficient to yield (a) Adjusted Annual Revenues for such Fiscal Year at least equal to the sum of the following for such Fiscal Year: (i) Maintenance and Operation Costs, (ii) Adjusted Annual Debt Service, and (iii) all other payments required to meet any other obligations of the City which Packet Pg. 262
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are charges, liens or encumbrances upon or payable from the Electric Revenue Fund, including all amounts owing under Subordinate Obligations; and (b) Adjusted Annual Net Revenues for such F iscal Year equal to at least 110% of the Adjusted Annual Debt Service for such Fiscal Year. See “SECURITY AND SOURCES OF PAYMENT FOR THE 2025A BONDS – The 2025A Installment Sale Agreement – Rate Covenant.”
Continuing Disclosure
The City has covenanted for the benefit of the holders and beneficial owners of the 2025A Bonds to provide certain financial information and operating data relating to the City and the Electric System by not later than 270 days following the end of the City’s Fiscal Year (which Fisc al Year presently ends June 30) (the “Annual Report”), commencing with the report for the 202 4-25 Fiscal Year, and to provide notices of the occurrence of certain enumerated events. See “CONTINUING DISCLOSURE.” These covenants have been made in order to assist the Underwriter in complying with S.E.C. Rule 15c2-12(b)(5) (the “Rule”). See also “CONTINUING DISCLOSURE” and “APPENDIX E – PROPOSED FORM OF CONTINUING DISCLOSURE AGREEMENT.”
Other Matters
This Official Statement includes summaries of the terms of the 2025A Bonds, the Trust Agreement, the 2025A Installment Sale Agreement , the Continuing Disclosure Agreement and certain contracts and other arrangements for the supply of capacity and energy. The summaries of and references to all documents, statutes, re ports and other instruments referred to herein do not purport to be complete, comprehensive or definitive, and each such summary and reference is qualified in its entirety by reference to each document, statute, report or instrument. The capitalization of any word not conventionally capitalized, or otherwise defined herein, indicates that such word is defined in a particular agreement or other document and, as used herein, has the meaning given it in such agreement or document.
Copies of the Trust Agreement , the 2025A Installment Sale Agreement and the Continuing Disclosure Agreement are available for inspection at the offices of the Trustee or the Redding Electric Utility Department (the “Electric Utility Department”), and will be available upon request and payment of duplication costs from the Trustee.
Additional information regarding the Official Statement may be obtained by contacting the Trustee or contacting the City at: City of Redding, 777 Cypress Avenue, Redding, California 96001, Attention:
Assistant Electric Utility Director, Resources.
PLAN OF FINANCE
General
The 2025A Bonds are being issued for the purpose of (i) financing costs of additions, betterments, extensions and improvements to the Electric System of the City and (ii) paying costs of issu ance of the 2025A Bonds.
Financing of Improvements to the Electric System
The net proceeds of the 2025A Bonds, in the amount of approximately $6 5.0* million, will be applied primarily to finance, including through reimbursement to the Electric Utility Department of funds
* Preliminary, subject to change.
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previously expended, costs of the 2025A Electric System Project , consisting of the following additions, betterments, extensions and improvements to the Electric System: (i) enhancements and modernization of overhead and underground infrastructure; (ii) substation security improvements; (iii) improvements to the Redding Power Plant maintenance and o perations building; (iv) transmission and distribution facility enhancements and u pgrades; (v) back-up power control center relocation and enhancements; software replacement and upgrades for the geographic information system utility network; (vi) major maintenance requirements of the Redding Power Plant; and (vii) other general system improvements; including, in each case reports, surveys and feasibility studies relating to such project s, as applicable. The 2025A Electric System Project may also include other such Electric System capital improvements as the City may add to, or replace or substitute for, the foregoing projects. See also “THE ELECTRIC SYSTEM – Capital Requirements.”
ESTIMATED SOURCES AND USES OF FUNDS
The estimated sources and uses of funds in connection with the 2025A Bonds, are as follows:
Sources:
Principal Amount of 2025A Bonds .......................... $ [Net] Original Issue Premium ..................................
Total Sources ................................................ $ Uses:
Deposit to Acquisition Fund (1) ................................ $ Costs of Issuance (2) ..................................................
Total Uses ..................................................... $ __________________
(1) Includes previous expenditures to be reimbursed to the City. (2) Includes Underwriter’s discount, legal fees, fees of the Trustee, municipal advisory fees, rating agency fees, printing costs and other miscellaneous expenses.
THE 2025A BONDS
The following is a summary of certain provisions of the 2025A Bonds. Reference is made to the 2025A Bonds for the complete text thereof and to the Trust Agreement for a more detailed description of such provisions. The discussion herein is qualified by such reference. See “APPENDIX D – SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS.” General
The 2025A Bonds will be issued in the aggregate principal amount set forth on the inside cover page of this Official Statement. The 2025A Bonds are being delivered in fully registered form, and when delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the 2025A Bonds. Principal of and interest on the 2025A Bonds are payable by the Trustee to DTC, which is obligated in turn to remit such principal and interest to its DTC Participants for subsequent disbursement to the beneficial owners of the 2025A Bonds. See “APPENDIX C – BOOK-ENTRY ONLY SYSTEM.” The 2025A Bonds will be dated the date of delivery thereof. Ownership interests in the 2025A Bonds will be in $ 5,000 denominations or any integral multiple thereof. Interest on the 2025A Bonds is payable on June 1 and December 1 of each year, commencing June 1, 2025 (each, an “Interest Payment Date”), calculated on the basis of a 360-day year and twelve 30-day months. The 2025A Bonds will mature Packet Pg. 264
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on the dates and in the principal amounts, and the interest thereon shall be computed at the per annum interest rates, all as set forth on the inside cover page of this Official Statement.
Redemption*
Optional Redemption. The 2025A Bonds maturing on or before June 1, 20___ are not subject to optional redemption prior to maturity. The 2025A Bonds maturing on and after June 1, 20___ are subject to redemption prior to their respective stated maturities at the direction of the Au thority, from moneys deposited by the Authority or the City from any source of available funds, as a whole or in part on any date (in such maturities as are designated by the Authority at the direction of the City, or if the Authority fails to designate such maturities, in inverse order of maturity and by lot within a maturity) on or after June 1, 20___, at a redemption price equal to the principal amount of the 2025A Bonds called for redemption together with accrued interest to the date fixed for redemptio n, without premium. In the event that term 2025A Bonds are called for optional redemption, the Authority, at the direction of the City, shall specify to the Trustee which mandatory sinking fund payments are to be prepaid by the amount of the 2025A Bonds to be redeemed.
Mandatory Redemption . The term 2025A Bond s maturing on June 1, 20___ are subject to mandatory redemption prior to maturity, in part by lot, commencing on June 1, 20___ and on each June 1 thereafter to and including June 1, 20___, from scheduled 2025A Installment Sale Payments made by the City on such dates, at a redemption price equal to the principal amount of the 2025A Bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium, according to the following schedule (subject to modification in the event of optional redemption as described above):
2025A Bonds maturing
on June 1, 20__
Redemption Date
(June 1)
Principal
Amount
†
_______________
† Final Maturity.
Selection of 2025A Bonds for Redemption. If less than all of the 2025A Bonds of any one maturity date are to be redeemed at any one time, the Trustee shall select the 2025A Bonds or portions thereof of such maturity date in any manner which the Trustee deems appropriate and fair.
Notice of Redemption of 2025A Bonds. Notice of redemption of any 2025A Bonds is to be given by the Trustee to the respective owners of any 2025A Bonds designated for redemption at their addresses appearing on the registration books of the Trustee, not less than 20 nor more than 60 days prior to the redemption date. So long as DTC is acting as securities depository for the 2025A Bond s, notice of redemption will be given in accordance with DTC procedures only to DTC or its nominee, not to the beneficial owners of the 2025A Bonds. See “APPENDIX C – BOOK-ENTRY ONLY SYSTEM.” Each notice of redemption shall state the date of such notice, the redemption pric e, the name and appropriate address of the Trustee, the CUSIP number of the maturity or maturities, and, if less than all of
* Preliminary, subject to change.
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any such maturity is to be redeemed, the distinctive certificate numbers of the 2025A Bond s of such maturity to be redeemed and, in the case of 2025A Bonds to be redeemed in part only, the respective portions of the principal amount thereof to be redeemed. Each such notice shall also state that on said date there will become due and payable on each of said 2025A Bonds the redemption price thereof and in the case of a 2025A Bond to be redeemed in part only, the specified portion of the principal amount thereof to be redeemed, together with interest accrued thereon to the redemption date, and that from and after such redemption date interest thereon shall cease to accrue . Failure to receive such notice shall not invalidate any of the proceedings taken in connection with such redemption.
The Authority (at the direction of the City) shall have the right to rescind any optional redemption by written notice of rescission. Any notice of optional redemption shall be cancelled and annulled if for any reason funds are not available on the date fixed for redemption for the payment in full of the 2025A Bonds then called for redemption, and such can cellation shall not constitute an Event of Default under the Trust Agreement. The Trustee shall mail notice of rescission of such redemption in the same manner as the original notice of redemption was sent.
Effect of Redemption of 2025A Bonds. If notice of redemption has been duly given and money for the payment of the redemption price of the 2025A Bonds called for redemption is held by the Trustee, then on the redemption date designated in such notice, such 2025A Bonds or such portions thereof shall become due and payable, and from and after the date designated for redemption, interest on the 2025A Bonds or portions thereof so called for redemption shall cease to accrue and the Owners of such 2025A Bonds shall have no rights in respect thereof except to receive payment of the redemption price thereof.
SECURITY AND SOURCES OF PAYMENT FOR THE 2025A BONDS
Pledge Under the Trust Agreement
The 2025A Bonds are limited obligations of the Authority payable solely from and secured solely by a first pledge of, charge and lien upon (a) all 2025A Installment Sale Payments and other payments made by the City and received by the Authority pursuant to the 2025A Installment Sale Agreement and (b) all interest or other income from any investment of any money in any fund or account (other than the Rebate Fund) established under the Trust Agreement (collectively, the “Revenues”), and any other amounts (including proceeds of the sale of the 2025A Bonds) held by the Trustee in any fund or account established under the Trust Agreement (other than the Rebate Fund), all on the terms and conditions set forth in the Trust Agreement. As and to the extent set forth in the Trust Agreement, all of the Revenues and such other amounts are irrevocably pledged to the payment of the interest on and principal of the 2025A Bonds and may not be used for any other purpose while the 2025A Bonds remain Outstanding; provided, however, that out of the Revenues and other moneys there may be applied such sums for such other purposes as permitted under the Trust Agreement. Pursuant to the Trust Agreement, the Authority has assigned to the Trustee all of the Authority’s rights and remedies under the 2025A Installment Sale Agreement.
THE 2025A BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY AND ARE
PAYABLE SOLELY FROM THE REVENUES AND OTHER FUNDS PLEDGED THEREFOR AS PROVIDED IN THE TRUST AGREEMENT. THE 2025A BONDS ARE NOT A DEBT OF THE STATE
OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS AND NEITHER THE STATE OF
CALIFORNIA NOR ANY OF ITS POLITICAL SUBDIVISIONS IS LIABLE THEREON, NOR IN ANY EVENT SHALL THE 2025A BONDS BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN THOSE OF THE AUTHORITY AS PROV IDED IN THE TRUST AGREEMENT. THE 2025A
BONDS DO NOT CONSTITUTE AN INDEBTEDNESS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. THE AUTHORITY HAS NO TAXING POWER.