Redding City Council
August 4, 2025

REDDING CITY COUNCIL SPECIAL MEETING
Civic Center Council Chambers
777 Cypress Avenue, Redding, CA
MONDAY, AUGUST 4, 2025, 5:15 P.M.

NOTICE AND AGENDA

NOTICE IS HEREBY GIVEN that a Special Meeting of the Redding City Council i s hereby called by the undersigned and under the authority vested in him by Section 54956 of the Government Code of the State of California. The meeting is to take place at the date, time, and location listed above.

Business to be transacted at said meeting, and the only business to be transacted is as follows:

1. See Attached Agenda

_______________________
Jack Munns, Mayor

Dated: July 31, 2025

Redding City Council August 4, 2025

Agenda
Special Meeting
Redding City Council
Council Chambers (Doors open 30 minutes prior)
777 Cypress Avenue, Redding, CA
August 4, 2025
5:15 PM

1. CALL TO ORDER - MAYOR JACK MUNNS
A. Pledge of Allegiance
B. Invocation - Jen McCloskey, Redding Police and Fire Departments' Chaplain C. Roll Call

2. CLOSED SESSION

PUBLIC COMMENT for agendized items only, the City Council will allocate up to a maximum of three minutes per speaker for each agenda item.

The City Council will recess to Closed Session to discuss the following item(s). At the conclusion of the Close d Session, Open Session will reconvene and reportable action, if any, will be announced.

2A. Closed Session pursuant to California Government Code Section 54956.9(d)(1):

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Adams v. City of Redding , et al. ; U.S. District Court, Eastern District of California, Case No. 2:20-cv-01610-TLN-DMC

2B. Closed Session pursuant to California Government Code Section 54956.8:

CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Property Location: 7251 Eastside Road; Assessor’s P arcel Nos. 050 -050-010 and 050-070-008
Agency Negotiator: City Manager Tippin
Negotiating Parties: City of Redding and County of Shasta Under Negotiation: Price and Terms
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 enter your name in the electronic kiosk located in the lobby. 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 and 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 August 4, 2025

2C. Closed Session pursuant to California Government Code Section 54957.6:

CONFERENCE WITH LABOR NEGOTIATOR
Designated Agency Representative: Personnel Manager Saelee Employee Organizations:
(1) Redding Independent Employees’ Organization - Clerical, Technical and Professional Unit;
(2) Redding Independent Employees’ Organization - Supervisory & Confidential Unit; and
(3) Redding Peace Officers’ Association – Miscellaneous Employees

PRESENTATION

Presentation by Advance Redding regarding the state of the Civic Auditorium.

3. PUBLIC COMMENT - for non-agendized matters within the City’s jurisdiction.

4. CONSENT CALENDAR
The Consent Calendar contains items considered routine and/or which have been individually scrutinized by City Council Members and are anticipated to require no further deliberation. If a member of the public wishes to address an item on the Consent Calend ar, please enter your name in the electronic kiosk located in the lobby 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 place 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 - Closed Session of July 15, 2025; and Regular Meeting of July 15, 2025.

4.1(a). Authorize the Mayor to send a letter of support for Senate Bill 346 (Durazo) which requires short -term rental facilitators to provide the address of a short - term rental listing at the request of a local agency to allow for audit authority for transient occupancy taxes.

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 their name through the electronic kiosk, 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.

Redding City Council August 4, 2025

4.5(a). Authorize and approve the following related to the purchase of one vacuum truck for the City of Redding Electric Utility:
(1) Authorize the purchase t hrough Municipal Maintenance Equipment (MME), using Sourcewell contract p ricing, with a net delivered cost of $624,468.83, including all applicable taxes and fees;
(2) Authorize the City Manager , or designee, to approve future pricing adjustments, tariffs, terms, and policy changes as needed up to a total of $25,000.

4.6(a). Adopt Resolution approving the City of Redding’s application to the California Department of Forestry and Fire Protection’s Wildfire Prevention Grants Program in the amount of $950,000 , for vegetation management and reduction of fuel loads on City of Redding -owned properties for a project known as the City of Redding Priority Hazardous Fuel Management Project.

4.6(b). Authorize and approve the following actions relative to the Outdoor Recreation Legacy Partnership Program for South City Park:
(1) Authorize the Mayor to execute a deed restriction; and (2) Find that this activity is exempt from environmental review under the California Environmental Quality Act, pursuant to Section 15061(b)(3) – Common Sense Exemption.

4.11(a). Authorize and approve the following ac tions relative to Consulting and Professional Services Contract (C -7412) with Morrison Structures, Inc. for the Sacramento Drive Bridge at Olney Creek Replacement Project:
(1) Approve the Third Amendment to the Consulting and Professional Services Contract in the amount of $291,054.02 for a total not -to-exceed fee of $574,095.93;
(2) Authorize the City Manager, or designee, to execute the Third Amendment; and
(3) Authorize the City Manager, or designee, to approve additional contract amendments not-to-exceed $50,000.

4.11(b). Approve and authorize the purchase of residential carts, commercial containers, lids and roll off boxes, on an as -needed basis, utilizing the Sourcewell and HGACBuy Cooperative contract pricing for a total amount not -to-exceed $1,230,000 for the City of Redding Solid Waste Utility for Fiscal Year s 2025-26 and 2026-27.

4.11(c). Authorize and approve the following actions to approve increases to the project budget in the amount of $220,000 for the completion of Bid Schedule No. 535 7, City Hall Fire Alarm Replacement Project, as outlined below for additional project costs:
(1) Adopt Resolution approving and adopting the 4 th Amendment to City Budget Resolution No. 2025-049 appropriating an additional $220,000; (2) Increase of $83,000 to the construction management budget, bringing the construction management total to $112,000; and
(3) Increase of $137,000 to the construction contingency budget, bringing the construction contingency budget to $152,000.

Redding City Council August 4, 2025

4.11(d). Authorize and approve the following actions relative to Bid Schedule No. 5609 Canter Court Sewer Project:
(1) Award to Axner Excavating Inc. in the amount of $273,456; (2) Approve an additional $89,500 to cover the cost of administration and inspection fees;
(3) Approve $142,000 for project development costs;
(4) Approve $40,000 to provide construction contingency funding; and (5) Authorize the City Manager, or designee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $25,000.

4.11(e). Authorize the following actions relative to Bid Schedule No. 5 614 (Job No. 9944), Re dding Regional Airport Passenger Terminal Parking Lot Reconstruction Project:
(1) Award to Tullis, Inc., in the amount of $835,360;
(2) Approve $ 155,000 to cover the cost of administration and inspection fees;
(3) Approve $115,000 for project development costs;
(4) Approve $168,000 to provide construction contingency funding; (5) Authorize the City Manager, or designee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $25,000; and
(6) Find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 – Existing Facilities.

4.11(f). Authorize and approve the following actions relative to Bid Schedule No. 5606 (Project No. STADM23026), Replace Asphalt Concrete Surfacing 2025:
(1) Award to J.F. Shea Construction, Inc. in the amount of $1,630,457; (2) Approve $ 239,000 to cover the cost of administration and inspection fees;
(3) Approve $196,200 for project development costs;
(4) Approve $163,100 to provide construction contingency funding; (5) Authorize the City Manager to approve additional inc reases in either the construction management or construction contingency amounts up to a total of $50,000;
(6) Approve the project design plans, specifications, and special provisions; and
(7) Find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301(c) – Existing Facilities.

RECOMMENDATION: ACCEPT, ACKNOWLEDGE, ADOPT, APPROVE,
AND/OR AUTHORIZE ALL ITEMS ON THE CONSENT CALENDAR.

Redding City Council August 4, 2025

9. REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES

City Manager/Assistant City Manager

9.1(a). Consider City of Redding's response to the Shasta County Grand Jury Report regarding the Quartz Hill Subdivision Development.

Recommendation:

Authorize the Mayor to sign and send a response letter to the 2024-25 Shasta County Grand Jury concerning its report titled “ Quart Hill Subdivision Development – Transparency, Is It Clear? ” regarding the City of Redding’s (City) planned development on City -owned property consisting of approximately 113 -acres of undeveloped land in Northwest Redding, identified as 850 Quartz Hill Road.

City Manager/Public Works Director

9.1(b). Consider City of Redding's response to the Shasta County Grand Jury Report regarding Parking.

Recommendation:

Authorize the Mayor to sign and send a response letter to the 2024 -25 Shasta County Grand Jury concerning its report titled “Redding’s Downtown Paid Parking Program” regarding the operations of the City of Redding’s paid parking program.

Assistant City Manager

9.2(b). Consider Market Street Manor Rehabilitation Financing Agreement.

Recommendation:

Authorize and approve the following:
(1) Authorize the Mayor to sign the Rehabilitation Financing Agreement with Project Restoration for the redevelopment of 2171 Market Street (Assessor’s Parcel No. 102 -510-019) that includes a residual receipts loan in the amount of $1,500,000 at one percent for a 20-year term;
(2) Authorize the City Manager, or designee, to execute any other docu ments needed to complete the transaction;
(3) Find that allocating funding is exempt from review under the California Environmental Quality Act Guidelines, and that the rehabilitation project is exempt pursuant to Title 14, Section 15301, Existing Facilities; and (4) Find that administrative and management activities, such as allocating funding, are exempt under 24 CFR §58.34(a)(3) administrative and management activities under the National Environmental Policy Act. The construction project has been reviewed for environmental compliance and has been found to be Categorically excluded Subject to Section 58.5 and converts to exempt per Section 58.34(a)(12).

Redding City Council August 4, 2025

11. COUNCIL TRAVEL REPORT(S)
City Council Member attendance at conference/meetings reimbursed at City expense. {Requirement of Assembly Bill 1234}

Information Only

12. SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS

FOR FUTURE CITY COUNCIL MEETINGS

13. ADJOURNMENT

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 C ouncil meetings can also be viewed on the City’s web site at https://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 includi ng 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 excluded 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

Closed Session pursuant to California Government Code Section 54956.9(d)(1):

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Adams v. City of Redding , et al. ; U.S. District Court, Eastern District of California, Case No. 2:20-cv-01610-TLN-DMC
MEETING DATE: August 4, 2025
ITEM NO. 2A
FROM:

***APPROVED BY***
[email protected]
SUBJECT: 2A--Closed Session - Existing Litigation
Christian M. Curtis, City
Attorney
Packet Pg. 8

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Closed Session pursuant to California Government Code Section 54956.8:

CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Property Location: 7251 Eastside Road ; Assessor’s Parcel Nos. 050-050-010 and 050 -070- 008
Agency Negotiator: City Manager Tippin
Negotiating Parties: City of Redding and County of Shasta Under Negotiation: Price and Terms
MEETING DATE: August 4, 2025
ITEM NO. 2B
FROM:

***APPROVED BY***
[email protected]
SUBJECT: 2B--Closed Session - Property Negotiations re potential sale of property located at 7251 Eastside Rd.

Barry Tippin, City Manager
Packet Pg. 9

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Closed Session pursuant to California Government Code Section 54957.6:

CONFERENCE WITH LABOR NEGOTIATOR
Designated Agency Representative: Personnel Manager Saelee Employee Organizations:
(1) Redding Independent Employees’ Organization - Clerical, Technical and Professional Unit;
(2) Redding Independent Employees’ Organization - Supervisory & Confidential Unit; and (3) Redding Peace Officers’ Association – Miscellaneous Employees MEETING DATE: August 4, 2025
ITEM NO. 2C
FROM:

***APPROVED BY***
[email protected]
SUBJECT: 2C--Closed Session - Labor Negotiations - RIEO-CTP, RIEO Sup/Conf and RPOA-Miscellaneous
Kari Kibler, Personnel
Director
Packet Pg. 10

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Presentation by Advance Redding regarding the state of the Civic Auditorium.

MEETING DATE: August 4, 2025
ITEM NO.

FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: Presentation by Advance Redding.

Sharlene Tipton, City Clerk
Packet Pg. 11

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Approve City Council Minutes: Special Meeting - Closed Session of July 15, 2025; and Regular Meeting of July 15, 2025.

Attachments
^Unofficial Minutes - Special Meeting - Closed Session of July 15, 2025 ^Unofficial Minutes - Regular Meeting of July 15, 2025
MEETING DATE: August 4, 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. 12
74 07/15/2025
Unofficial Minutes Redding City Council, Special Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
July 15, 2025, 4:30 P.M.

The meeting was called to order by Mayor Jack Munns with the following Council Members present: Mike Littau, and Erin Resner. Council Member Tenessa Audette arrived at 4:32 p.m., and Council Member Dr. Paul Dhanuka arrived at 4:41 p.m.

Also present: City Attorney Christian M. Curtis , City Manager Barry Tippin, Assistant City Manager Steve Bade, City Clerk Sharlene Tipton, and Executive Assistant Erin Barnhart.

PUBLIC COMMENT

Mayor Munns determined that no one present wished to address the items age ndized for Closed Session.

CLOSED SESSION

At the hour of 4:31 p.m., Mayor Munns opened the Special Meeting and announced that the Council would adjourn to Closed Session.

At the hour of 5:59 p.m., Mayor Munns reconvened the Special Meeting to Open Session and reported that in reference to:

3A. Closed Session pursuant to California Government Code Section 54956.9(d)(2) & (e)(3):

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation
Claim No. 25 -053-557 by Myles Kennedy, Kennedy Towing and Transport , for damage sustained in a traffic accident involving a City vehicle on March 11, 2025.

Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.

3B. Closed Session pursuant to California Government Code Section 54956.8:

CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Property Location: 7251 Eastside Road; Assessor’s Parcel Nos . 050-050-010 and 050-070-008
Agency Negotiator: City Manager Tippin
Negotiating Parties: City of Redding and County of Shasta Under Negotiation: Price and Terms

Pursuant to Government Code Section 54957.1(a), the City C ouncil took no reportable action on this item.

3C. Closed Session pursuant to California Government Code Section 54957.6:

CONFERENCE WITH LABOR NEGOTIATOR
Designated Agency Representative: Personnel Director Kibler Employee Organizations:
(1) Redding Independent Employees’ Organization - Clerical, Technical and Professional Unit;
(2) Redding Independent Employees’ Organization - Supervisory & Confidential Unit; and
(3) Redding Peace Officers’ Association – Miscellaneous Employees

Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.

Packet Pg. 13
Attachment: ^Unofficial Minutes - Special Meeting - Closed Session of July 15, 2025 (4(a)--Approve City Council Minutes) 75 07/15/2025

3D. Closed Session pursuant to California Government Code Section 54956.8:

CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Locations: 300 Overhill Road, APN: 103-730-030;
400 Arbor Place, APN: 103-780-026; and
310 Overhill Road, APN: 103-730-029
City Negotiator: Public Works Director Webb
Parties: City of Redding and Tts 1 LLC;
Joe Wong; and
Stimpel Trust

Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.

3E. Closed S ession pursuant to California Government Code Section 54957( b):

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: City Attorney

Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.

ADJOURNMENT
There being no further business at the hour of 6:01 p.m., Mayor Munns declared the m eeting adjourned.

APPROVED:

_______________________________
Jack Munns, Mayor

ATTEST:

_______________________________
Sharlene Tipton, City Clerk
Packet Pg. 14
Attachment: ^Unofficial Minutes - Special Meeting - Closed Session of July 15, 2025 (4(a)--Approve City Council Minutes) 66 07/15/2025
Unofficial Minutes Redding City Council, Regular Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
July 15, 2025, 6:00 PM

The meeting was called to order at 6:02 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 Attorney Christian M. Curtis, City Manager Barry Tippin, Assistant City Manager Steve Bade, City Clerk Sharlene Tipton, and Executive Assistant Erin Barnhart.

The Pledge of Allegiance was led by Vice Mayor Littau.

The Invocation was provided by Reverend Patrick Blewett, Simpson University.

PRESENTATIONS

2A. Mayor Munns and Finance Director Greg Robinett provided a Mayor's Proclamation and Certificates of Recognition to the Foothill Little League Junior Girls All Star Softball Team, incorporated herein by reference, honoring them for winning the 2025 Nor -Cal State Championship, in Martinez, California, on June 30, 2025; and advancing to the West Region Junior Softball Regional Championship Tournament in Tucson, Arizona, on July 18, 2025.

The City Council took no formal action on this informational item.

PUBLIC COMMENT

Jaclyn Treadway expressed the need for greater community engagement in addressing homelessness and offered to present her nonprofit organization's "Developing Diamonds Community" program to the Council. She also provided her contact information, enabling both the Council and the public to access volunteer opportunities in the North State.

Mark Mezzano opined his support for the Tobacco Ordinance to be considered under item 9.1(b), and provided a handout that included suggested edits, incorporated herein by reference.

CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar and each Report to City Council (staff report) is incorporated herein by reference:

4(a). Approve City Council Minute s: Special Meeting – Budget Workshop No. 3 of May 20, 2025; Regular Meeting of May 20, 2025; Regular Meeting of June 3, 2025; Special Meeting - Closed Session of June 17, 2025; and Regular Meeting of June 17, 2025.

4(b). Accept City of Redding Accounts Payable Register No. 12 for the period of June 1, 2025, through June 30, 2025, in the amount of $29,080,075.19.

In response to Council Member Audette, Finance Director Greg Robinett noted that Payroll Registers will be provided to Council beginning next month.

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 there is a need to continue the emergency.

4.2(a). Approve the Funding Agreement with the Superior California Economic Development District (SCEDD) for Fiscal Year (FY) 2025 -2026, for economic development planning and business development services; and authorize payment to SCEDD in the amount of $18,117 for FY 2025-26 activities.

In response to Council Member Audette, Assistant City Manager Bade noted that SCEDD will provide a presentation to the Council in September 2025.

Packet Pg. 15
Attachment: ^Unofficial Minutes - Regular Meeting of July 15, 2025 (4(a)--Approve City Council Minutes) 67 07/15/2025

4.3(a). Authorize and approve the following actions relative to Bid Schedule No. 5556 Microsoft 365 Annual Licenses: (1) consent and grant bid relief, pursuant to Insight Public Sector, Inc.’s (Insight) July 8, 2025, withdrawal request; (2) terminate and void C-10813 License Support Provider Agreement contract with Insigh t Inc.; (3) award bid to Dell Marketing L.P. with an annual licensing cost of $403,824.72; (4) authorize the City Manager, or designee, to modify the number and type of licenses based on City of Redding staff needs; and (5) authorize the City Manager, or d esignee, to negotiate and execute the License Support Provider Agreement Contract with Dell Marketing L.P. (1) Adopt Resolution No. 2025-039 approving and adopting the 80th to City Budget Resolution No. 2023-060 appropriating $448,173 for project costs.

4.5(a). Authorize and approve the following relative to Bid Schedule No. 5599 – 15kV and 25kV cable for the Redding Electric Utility: (1) award Bid Schedule No. 5599 to The Okonite Company for an annual evaluated price of $2,543,200.00; (2) authorize the P urchasing Officer to extend the bid award annually with The Okonite Company through June 30, 2029, if mutually agreeable, with allowed price adjustments, and all terms and conditions remaining the same; and (3) authorize the City Manager, or designee, to approve an additional $1,017,280.00 per contract year as a contingency to account for unforeseen cost escalations.

4.6(a). Approve the First Amendment to the Consulting and Professional Services Contract with the Redding Chamber of Commerce for Profession al Tourism and Destination Marketing Services (C-8915) thereby reducing the contract to $650,000 annually and extending the contract term five-years to June 30, 2030; and authorize the City Manager, or designee, to execute the contract.

Todd Jones, Redding Chamber of Commerce President , expressed appreciation for the Council’s continued support of the tourism contract.

4.6(b). Adopt Resolution No. 2025-050, a resolution of the City Council of the City of Redding, declaring July 2025 as Parks and Recreation Month in the City of Redding.

4.6(c). Authorize and approve the following actions relative to the purchase of vehicles and accessories by the City of Redding’s Community Services Department: (1) approve and ratify the City Manager’s approval of the purchase of one Kenworth T480 (purchase order PUR002704), using Sourcewell contract pricing, and an accessories body (purchase order PUR002705) in the combined amount of $210,944.75; (2) authorize the purchase of one Caterpillar 309 Excavator using Sourcewell contract pricing in the amount of $213,411.29; (3) authorize the City Manager to increase the purchase price by up to ten percent of the Kenworth T480 and/or Caterpillar 309 excavator, if necessary, to complete the purchase; and (4) find that the project is categorically exempt from environmental review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities and Section 15304 – Minor Alterations to Land.

4.6(d). This item was moved to the Regular Calendar as item number 9.6(d) at the request of Council Member Audette.

4.10(a).This item was moved to the Regular Calendar as item number 9.10(a) at the request of Council Member Audette.

4.11(a).Authorize and approve the following relative to the South Street Water Main at Railroad Emergency Replacement Project (Project): (1) accept update regarding the Project; and (2) 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(b).Authorize and approve the following: (1) a ward Bid Schedule No. 5603 for Redding Electric Utility Eastside Road Valve Yard Fence Replacement Project to Ray Excavating in the amount of $204,090; (2) adopt Resolution No. 2025-051, a resolution of the City Council of the City of Redding, approving and adopting the 2nd Amendment to City Budget Resolution No. 2025 -049 appropriating an additional $137,700; (3) approve $70,000 to cover the cost of administration and inspection fees; (4) approve $81,000 for project development costs; (5) approve $30,610 to provide construction contingency funding; (6) authorize the City Manager, or designee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $25,000; and (7) find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301(c) – Existing Facilities.

Packet Pg. 16
Attachment: ^Unofficial Minutes - Regular Meeting of July 15, 2025 (4(a)--Approve City Council Minutes) 68 07/15/2025

4.11(c).Authorize the following actions re lative to Bid Negotiation No. 5593 Cape Seal 2025:
(1) award to VSS International, Inc. in the amount of $2,272,120; (2) approve an additional $280,000 to cover the cost of contract administration and inspection fees; (3) approve $230,000 to provide const ruction contingency funding; (4) approve $54,000 for project development costs; (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(c) – Existing Facilities.

4.11(d).Authorize and approve a $100,000 increase to the Redding Power Plant Natural Gas Pipeline Inspections Project , Bid Schedule No. 5563, to complete unforeseen conditions identified during construction :(1) increase of $ 26,715 to the construction management budget, bringing the construction management total to $45,715; and (2) increase of $73,285 to the construction contingency budget, bringing the construction contingency budget to $101,285.

4.11(e). Adopt Resolution No. 2025-052, a resolution of the City Council of the City of Redding, to form Sanitary Sewer Maintenance District (SSMD) 01 -25, Salt Creek Unit 4 Subdivision, and approve the following: (1) the Engineer's Report as filed with the City Clerk; (2) confirmation of the map of the assessment district contained in the Engineer's Report; (3) mailing of notices and ballots; and (4) setting the Public Hearing and Election for September 2, 2025, at 6:00 p.m., in the City Council Chambers located at 777 Cypress Avenue, Redding, California, regarding the formation of Salt Creek Unit 4 Subdivision into SSMD 01 –25 pursuant to the Improvement Act of 1911, Chapter 26, Maintenance Districts, Streets and Highways Code Section 5820, et seq. and Government Code 53753(b).

4.11(f). Authorize and approve the following actions relative to Consulting and Professional Services Contract (C -9509) for the Victor and Cypress Avenues Active Transportation Project: (1) approve the Second Amendment to the Consulting and Professional Services Contract (C-9509) with GHD Inc., in the amount of $65 ,733.89 for a total not -to-exceed fee of $1,873 ,227.18; (2) authorize the City Manager, or designee, to execute the Amendment; and (3) authorize the City Manager, or designee, to approve additional contract amendments not to exceed $50,000.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Munns, that the foregoing items on the Consent Calendar be accepted, acknowledged, adopted, approved, ratified, and/or authorized as recommended.

The Vote:

AYES: Council Members – Audette, Dhanuka, Littau, Resner, and Munns NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None

Resolution Nos. 2025-050 through 2025-052 are on file in the Office of the City Clerk.

PUBLIC HEARINGS

6.1. Public Hearings (2) to consider adopting Resolutions regarding Landscape Maintenance Districts Annual Assessments for Fiscal Year 2025-26.

Community Services Director Travis Menne summarized the Report to City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.

The hour of 6:31 p.m. having arrived, Mayor Munns opened the Public Hearing.

Mayor Munns determined that no one present wished to address this matter and closed the Public Hearing.

The Affidavit of Publication – Notice of Public Hearing is on file in the Office of the City Clerk.

A discussion amongst the Council ensued.

Packet Pg. 17
Attachment: ^Unofficial Minutes - Regular Meeting of July 15, 2025 (4(a)--Approve City Council Minutes) 69 07/15/2025
A MOTION WAS MADE by Council Member Resner, seconded by Council Member Dhanuka, to authorize the following related to Landscape Maintenance Districts (LMDs):
(1) adopt Resolution No. 2025-053, a resolution of the City Council of the City of Redding, relative to LMDs A, B, and C authorizing the following: (a) confirming the maps of the assessment districts as contained in the Engineer’s Report for Fiscal Year 2025 -26 for LMDs A, B, and C; (b) approving and confirming annual assessments and levy amounts shown for Fiscal Year 2025-26 pursuant to the Landscaping and Lighting Act of 1972; and (2) adopt Resolution No. 2025-054, a resolution of the City Council of the City of Redding, relative to LMDs authorizing the following: (a) confirming the maps of the asse ssment districts as contained in the Engineer’s Reports for LMDs D, E, F, G, H, H1, J, K, L, M, N, O, P, Q, R, S, S1, T, U, V, W, 01-06, 02-06, 03-06, 04-06, 05-06, 06-06, 07-06, 08-06, 09- 06, 11-06, 01-07, 02-07, 02-09, 03-09, 01-11, 02-11, 03-11, 01-13, 02-14, 03-14, 01-15, 02-16, 03-16, 01-17, 01-19, 02-19, 01-20, 01-22 and 01-23; (b) approving and confirming annual assessments and levy amounts shown for Fiscal Year 2025 -26 pursuant to the Landscaping and Lighting Act of 1972 ; and (3) authorize the City Manager to appropriate the revenues and expenses accordingly by each LMD associated with this report.

The Vote:

AYES: Council Members – Audette, Dhanuka, Littau, Resner, and Munns NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None

Resolution Nos. 2025-053 and 2025-054 are on file in the Office of the City Clerk.

6.2. Public Hearing to consider Resolution regarding Sanitary Sewer Maintenance District 01- 07 Hope Lane and 01-19 Seven Bridges.

Public Works Director Michael Webb highlighted the Report to City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.

The hour of 6:41 p.m. having arrived, Mayor Munns opened the Public Hearing.

Mayor Munns determined that no one present wished to address this matter and closed the Public Hearing.

The Affidavit of Publication – Notice of Public Hearing is on file in the Office of the City Clerk.

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Dhanuka, to adopt Resolution No. 2025-055, a resolution of the City Council of the City of Redding, authorizing and approving the following relative to Sanitary Sewer Maintenance Districts (SSMD) 01-07 Hope Lane and 01-19 Seven Bridges: (1) confirming the map of the assessment district as contained in the Engineer's Reports for SSMD 01-07 and SSMD 01-19; and (2) approving and confirming the annual assessments and ordering the levy amounts shown for Fiscal Year 2025-26 pursuant to the Improvement Act of 1911, Chapter 26, Maintenance Districts, Streets and Highways Code Section 5820, et seq.

The Vote:

AYES: Council Members – Audette, Dhanuka, Littau, Resner, and Munns NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None

Resolution No. 2025-055 is on file in the Office of the City Clerk.

6.3. Tentative Subdivision Map Application (S -2022-02416) and Rezoning Application (RZ - 2024-00156), by Zinco Holding, LLC, to subdivide two parcels located at 3150 and 3250 Jordan Lane.

Development Service Planning Manager Lily Toy provided an overview of the Report to City Council (staff report), and a PowerPoint presentation, both incorporated herein by reference.

The hour of 6:48 p.m. having arrived, Mayor Munns opened the Public Hearing.

Packet Pg. 18
Attachment: ^Unofficial Minutes - Regular Meeting of July 15, 2025 (4(a)--Approve City Council Minutes) 70 07/15/2025
Mayor Munns determined that no one present wished to address this matter and closed the Public Hearing.

The Affidavit of Publication – Notice of Public Hearing is on file in the Office of the City Clerk.

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Dhanuka seconded by Council Member Resner, to : (1) adopt the Mitigated Neg ative Declaration and Mitigation Monitoring Program, upon a determination the necessary findings for approval are in evidence; (2) offer Ordinance No. 2680, an ordinance of the City Council of the City of Redding, approving Rezoning Application (RZ-2024-00156) consisting of 4.42 acres located at 3150 and 3250 Jordan Lane from “RS-3” to “RS-3.5” Residential Single-Family District for first reading by title only and waive the full reading; (3) authorize the City Attorney to prepare, and the City Clerk to publish a summary ordinance; and (4) approve Tentative Subdivision Map Application (S-2022-02416), Zinco Subdivision.

The Vote:

AYES: Council Members – Audette, Dhanuka, Littau, Resner, and Munns NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None

Ordinance No. 2680 is on file in the Office of the City Clerk.

REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES

9.1(b). Adopt a tobacco retail ordinance in the City of Redding.

Assistant City Attorney Stacy Larson, and Management Assistant to the City Manager Jason Gibilisco, summarized the Report to City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.

City Attorney Curtis noted that a modified copy of the ordinance has been provided to Council and copies for the public are available in the back of the room, incorporated herein by reference. The changes are related to Recitals, subsection F; and Section 6. 13.040, subsection D.(1), Minimum Legal Sales Age , to reflect the minimum age to purchase tobacco-related products be twenty-one years of age with no exceptions.

Kristen Schreder spoke in support of a tobacco-oriented retailer license ordinance.

Council Member Audette expressed her concerns with the ordinance not targeting just vape shops.

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Munns, to authorize and approve the followin g: (1) Offer Ordinance No. 2681, an Ordinance of the City Council of the City of Redding, amending Redding Municipal Code (RMC) Title 6 (Business Taxes, Licenses, and Regulation), Chapter 6.13 ( RMC Tobacco Retailing) adopting a Tobacco Retail License for first reading by title only, and waive the full reading; (2) authorize the City Attorney to prepare a summary ordinance and the City Clerk to publish the same in accordance with law; (3) find that the adoption of this ordinance is exempt from environmental review pursuant to California Environmental Quality Act guidelines 15060(c)(2) and 15061(b)(3) and further find that the passage of this ordinance will have no foreseeable direct or indirect physical change in the environment; and (4) directed staff to provide a status update to the Council in six months.

The Vote:

AYES: Council Members – Dhanuka, Littau, Resner, and Munns NOES: Council Members – Audette
ABSTAIN: Council Members – None
ABSENT: Council Members – None

Ordinance No. 2681 is on file in the Office of the City Clerk.

Packet Pg. 19
Attachment: ^Unofficial Minutes - Regular Meeting of July 15, 2025 (4(a)--Approve City Council Minutes) 71 07/15/2025
Council Member Dhanuka left Council Chambers at 7:01 p.m. and returned at 7:02 pm.

9.5(b). Third Phase Agreement with Northern California Power Agency authorizing execution of the Energy Storage Service Agreement with Trolley Pass Project LLC (Aypa Power) on behalf of the City of Redding's Electric Utility.

Electric Utility Director Nick Zettel summarized the Report to City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.

A discussion amongst the Council ensued.

Director Zettel answered several questions by Council Members Audette and Dhanuka.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Audette, to authorize the City Manager, or designee, to execute the Third Phase Agreement with Northern California Power Agency (NCPA), authorizing NCPA to enter into an Energy Storage Service Agreement with Trolley Pass Project LLC (Aypa Power) on behalf of the City of Redding's Electric Utility for participat ion in the Trolley Battery Energy Storage Project. The Vote: Unanimous Ayes.

9.6(d). Item 4.6(d) was moved from the Consent Calendar at the request of Council Member Audette.

Resolution appropriating Park In -Lieu Funds for the Dr. Martin Luther King Jr. Center Remodel Project (Project).

Community Services Director Travis Menne summarized the Report to City Council (staff report), incorporated herein by reference.

In response to Council Member Audette, Director Menne advised Council that the Project structure that had initially been submitted has changed due to increased improvement needs and cost increases of the Project and site. Staff realized that the Project needed to be implemented in phases, thus allowing the department to seek grants to fund the Project in place of former American Rescue Plan Act (ARPA) funds. He noted that a presentation of all grant-funded projects will be provided at a future Council meeting.

A MOTION WAS MADE by Council Member Resn er, seconded by Council Member Dhanuka, to adopt Resolution No. 2025-056, a resolution of the City Council of the City of Redding, approving and adopting the 1 st Amendment to City Budget Resolution No. 2025-049 appropriating $50,000 of the City of Redding’s (City) Park In-Lieu fund for the City’s Dr. Martin Luther King Jr. Center Remodel Project.

The Vote:

AYES: Council Members – Audette, Dhanuka, Littau, Resner, and Munns NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None

Resolution No. 2025-056 is on file in the Office of the City Clerk.

9.8(a). Oral report providing the 2025 Update for the Redding Fire Department.

Fire Chief Jerrod Vanlandingham highlighted the Report to City Council (staff report), provided a PowerPoint presentation, both incorporated herein by reference , and relayed statistics and performance measures from the past two years, including present, and future expectations for the Redding Fire Department.

A discussion amongst the Council ensued.

In response to Council Member questions, City Manager Tippin noted that the Fir st Responder Fee is partially related to patient lift assist calls received primarily from assisted living facilities, however, the previously adopted ordinance does give the Fire Chief the ability to waive a fee if he feels it was inappropriate.

The City Council took no formal action on this informational item.

Packet Pg. 20
Attachment: ^Unofficial Minutes - Regular Meeting of July 15, 2025 (4(a)--Approve City Council Minutes) 72 07/15/2025

9.10(a).Item 4.10(a) was moved from the Consent Calendar at the request of Council Member Audette.

Internal loan between City of Redding (City) funds to prepay the CalPERS Unfunded Liability.

City Manager Tippin summarized the Report to City Council (staff report), incorporated herein by reference.

In response to Council Member Audette, Mr. Tippin advised that this is a standard annual item brought before the Council, and explained that if the City prepays the unfunded liability to CalPERS by the end of July, the City receives a substantial discount. Finance Director Greg Robinett noted that the split between the funds is 35 percent Redding Electric Utility, 35 percent Water, and 30 percent Wastewater.

A MOTION WAS MADE by Council Member Audette, seconded by Council Member Resner, to: (1) authorize a City of Redding (City) internal loan for prepayment of the CalPERS unfunded liability (UAL) payment for Fiscal Year 202 5-26 in the amount of $20,221,123 between Redding Electric Utility, Water, and Wastewater as funds allow to the following City Funds: General, Airports, Information Technology, Fleet Maintenance, Building Maintenance, Records Managements, Redding Municipal Utilities Administration, Geographic Information Systems, Communications, Reprographics, and Volunteer Services; and (2) authorize City Manager and Director of Finance in future years to prepay UAL utilizing internal loans that will be repaid within each fiscal year.

The Vote: Unanimous Ayes.

Mayor Munns left the Chambers at 8:12 p.m. and returned at 8:14 p.m.

9.10(b).City of Redding (City) General Fund Quarterly Financial Report for the quarter ended March 2025.

City Manager Tippin noted that this item was previously requested under item 12 at the June 17, 2025, Council Meeting, and is representative of a report for the third quarter of last budget year, and reminded the Council that the newly adopted budget went into effect July 1, 2025.

Finance Director Greg Robinett highlighted the Report to City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.

Council Member Audette noted that in her research, she has never seen a negative in the third quarter, and opined that it is cause for concern

In response to Council Member Audette, City Manager Tippin and Director Robinett confirmed that the Council will receive updated financial reports, including encumbrance/carryovers, in September 2025.

A discussion amongst the Council ensued.

The City Council took no formal action on this informational item.

9.11(g).Resolution and enter into the Sacramento River Settlement Contractors Drought Protection Program.

Public Works Director Michael Webb provided and overview of the Report to City Council (staff report), and a PowerPoint presentation, both incorporated herein by reference.

A discussion amongst the Council ensued.

Packet Pg. 21
Attachment: ^Unofficial Minutes - Regular Meeting of July 15, 2025 (4(a)--Approve City Council Minutes) 73 07/15/2025
A MOTION WAS MADE by Council Member Dhanuka, seconded by Council Member Resner, to authorize the following actions relative to the Sacramento River Settlement Contractors (SRSC) Corporation Drought Protection Program Agreement (Agreement):
(1) adopt Resolution No. 2025-057, a resolution of the City Council of the City of Redding, authorizing the City of Redding to adopt responsible agency finding and statement of overriding considerations under the California Environmental Quality Act (CEQA) for the Agreement and authorize the City of Redding to enter the Agreement; (2) authorize the City Manager, or designee, to execute the Agreement with the SRSC and receive $2,388,010 in funds; (3) authorize the City Manager, or designee, to execute the Indemnity Agreement with Glenn -Colusa Irrigation District; and (4) find that the action is exempt from review under CEQA Guidelines, per Section 15061 – Common Sense Exemption.

The Vote:

AYES: Council Members – Dhanuka, Littau, Resner, and Munns NOES: Council Members – Audette
ABSTAIN: Council Members – None
ABSENT: Council Members – None

Resolution Nos. 2025-057 is on file in the Office of the City Clerk

COUNCIL TRAVEL REPORT(S)
City Council Member attendance at conference/meetings reimbursed at City expense. {Requirement of Assembly Bill 1234}

Council Member Dhanuka attended the League of California Cities Sacramento Valley Division Meeting on July 11, 2025, held in Rancho Cordova, California.

ADJOURNMENT
There being no further business at the hour of 9:07 p.m., Mayor Munns declared the m eeting adjourned.

APPROVED:

______________________________
Jack Munns, Mayor

ATTEST:

____________________________
Sharlene Tipton, City Clerk

Packet Pg. 22
Attachment: ^Unofficial Minutes - Regular Meeting of July 15, 2025 (4(a)--Approve City Council Minutes)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize the Mayor to se nd a letter of support for Senate Bill 346 (Durazo) which requires short-term rental facilitators to provide the address of a short -term rental listing at the request of a local agency to allow for audit authority for transient occupancy taxes.

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 or provide alternate direction to staff.

Background/Analysis

Local agencies currently lack access to property addresses and other property related information from short-term rental facilitators. This makes it difficult for cities to properly collect and audit transient occupancy taxes (TOT) and to just accept what is received. Local agencies can only compel short-term rental facilitators to disclose property information through certain legal action, such as subpoenas.

SB 346 requires short-term rental facilitators to provide local agencies with physical addresses of each short-term rental listed on the facilitator’s website , the nine-digit zip code, and each short - term rental during a specified period. This ensure s cities are collecting the correct amount of TOT and allows for more efficient enforcement against unlicensed short-term rentals.

MEETING DATE: August 4, 2025
ITEM NO. 4.1(a)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.1(a)--Letter of Support for Senate Bill 346 Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 23
Report to Redding City Council July 30, 2025
Re: 4.1(a)--Letter of Support for Senate Bill 346 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

• This is a routine operational item.

Attachments
^SB 346 - Letter of support
Packet Pg. 24
Jack Munns, Mayor
[email protected]
530.225.4447

August 4, 2025

The Honorable Juan Carrillo
Chair, Assembly Local Government Committee
1020 N Street, Room 157
Sacramento, CA 95814

RE: SB 346 (Durazo) Local agencies: transient occupancy taxes: short-term rental facilitator.

Notice of SUPPORT (As Amended on May 8, 2025)

Dear Assembly Member Carrillo,

The City of Redding supports SB 346, which would better equip cities to enforce local ordinances related to short-term rentals, including the collection and remittance of transient occupancy taxes (TOT).

Short-term rentals are regulated exclusively at the local level via the adoption of an ordinance that often includes regulations on permitting, tax compliance, noise, parking, occupancy, as well as other responsibilities for hosts and short-term rental facilitators. In some instances, ordinances limit the number of short-term rentals allowed to operate lawfully, other ordinances ban short-term rentals entirely.

Short-term rentals can present numerous challenges to neighborhoods and adjacent property owners. They may create additional noise, traffic, parking, and public safety issues, decrease available housing stock, and in some cases turn residential neighborhoods into de-facto hotel rows, collectively creating additional demands on local public service providers.

Unfortunately, the enforcement of TOT ordinances and the collection and remittance of these taxes from short-term rentals can be inconsistent, even when voluntary collection agreements are in place with a short-term rental facilitator. Cities lack access to property addresses or other property-related information, even under these agreements, resulting in a difficult choice to either accept tax payments without any way to verify their accuracy and legality or attempt to collect taxes directly from property owners—a costly and time-consuming process. Meanwhile, short-term rental facilitators have full knowledge of these properties’ locations and resist disclosing this information. Cities can only compel short-term rental facilitators to disclose this critical information through certain legal action, such as subpoenas. This is not how oversight of public dollars should work.

SB 346 would address the above issues by providing cities with the physical address of each short-term rental listed on the facilitator’s website and full audit authority of TOT dollars. These changes would Packet Pg. 25
Attachment: ^SB 346 - Letter of support (4.1(a)--Letter of Support for Senate Bill 346)

ensure the correct amount of TOT is being collected and remitted and would allow for more efficient enforcement against unlicensed units.

For these reasons, the City of Redding supports SB 346.

Sincerely,

Jack Munns
City of Redding
Mayor

cc. The Honorable Megan Dahle (via email)
The Honorable Heather Hadwick (via email)
Meg Desmond, League of California Cities, [email protected] League Regional Public Affairs Manager (via email)

Packet Pg. 26
Attachment: ^SB 346 - Letter of support (4.1(a)--Letter of Support for Senate Bill 346)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize and approve the following related to the purchase of one vacuum truck for the City of Redding Electric Utility:
(1) Authorize the purchase t hrough Municipal Maintenance Equipment ( MME), using Sourcewell contract pricing, with a net delivered cos t of $624,468.83, including all applicable taxes and fees;
(2) Authorize the City Manager , or designee, to approve future pricing adjustments, tariffs, terms, and policy changes as needed up to a total of $25,000.

Fiscal Impact

This vehicle purchase was anticipated, and adequate funding is available within Redding Electric Utility's (REU) Rolling Stock Fund.

Over the past two years, REU has observed a significant increase in vehicle costs. As pricing trends continue to rise, staff is actively monitoring market conditions and evaluating the long - term impacts on fleet planning. REU maintains close oversight of all expenditures related to vehicle replacement and will continue to assess each purchase to ensure responsible and strategic use of the Rolling Stock Replacement Fund.

Alternative Action

The City Council (Council) could choose not to approve the purchase and provide alternative direction to staff.

MEETING DATE: August 4, 2025
ITEM NO. 4.5(a)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.5(a)-- Purchase of one vacuum truck for the City of Redding Electric Utility Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 27
Report to Redding City Council July 31, 2025
Re: 4.5(a)-- Purchase of one vacuum truck for the City of Redding Electric Utility Page 2

Background/Analysis

REU is currently in need of replacing one vacuum truck (E449). E449 is used f or 12kV distribution line work, excavation and locating of underground facilities, excavation of pole holes, and trenching. The decision to replace this vehicle is based on REU’s established vehicle replacement guidelines and the City of Redding’s Fleet Di vision criteria, which consider factors such as age, mileage, hours of operation, maintenance expenses, and a cumulative point rating assigned by the Fleet Division. While REU’s standard replacement criteria for vacuum trucks is 10 years in service or 100, 000 miles, E449 is currently over nine years old and has accumulated an estimated 95,000 equivalent miles. Although it has not yet met the formal replacement thresholds, the vehicle will exceed both criteria before a new unit can be delivered due to continued use and the long procurement lead time. Additionally, E449 has a poor maintenance history and is not considered reliable for emergency response. These factors support the decision to order a replacement at this time.

Municipal Maintenance Equipment participates in a cooperative agreement with Sourcewell, resulting in a competitive bid process. In addition to being an industry standard, using the Sourcewell contract to purchase equipment saves significant staff time needed to prepare bid specifications and solicit individual quotations from vendors. The Cit y also receives a significant price discount due to economies of scale realized through the volume of purchases on a multi - agency cooperative contract.

Environmental Review

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

Council Priority/City Manager Goals

This agenda item is a routine operational item.

Attachments
City of Redding Electric Utility Vac-Con VX390LH 800 Sourcewell Cover Letter Packet Pg. 28
Packet Pg. 29
Attachment: City of Redding Electric Utility Vac-Con VX390LH 800 Sourcewell Cover Letter (4.5(a)-- Purchase of one vacuum truck for the City Packet Pg. 30
Attachment: City of Redding Electric Utility Vac-Con VX390LH 800 Sourcewell Cover Letter (4.5(a)-- Purchase of one vacuum truck for the City Packet Pg. 31
Attachment: City of Redding Electric Utility Vac-Con VX390LH 800 Sourcewell Cover Letter (4.5(a)-- Purchase of one vacuum truck for the City Packet Pg. 32
Attachment: City of Redding Electric Utility Vac-Con VX390LH 800 Sourcewell Cover Letter (4.5(a)-- Purchase of one vacuum truck for the City

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Adopt Resolution approving the City of Redding’s application to the California Department of Forestry and Fire Protection’s Wildfire Prevention Grants Program in the amount of $950,000 , for vegetation management and reduction of fuel loads on City of Redding -owned properties for a project known as the City of Redding Priority Hazardous Fuel Management Project.

Fiscal Impact

The City of Redding’s (City) California Department of Forestry and Fire Protection’s Wildfi re Prevention Grants (CAL F IRE WPG) Program application requests $950,000 for vegetation management and reduction of fuel loads on City -owned properties for a project known as the City of Redding Priority Hazardous Fuel Management Project (Project). No match is required for this grant program.

Due to the Community Services Department’s current workload and the projected expenses to undertake this effort , staff is unable to treat the project sites included in this grant application .

However, the project wi ll fund approximately one and one -half years of staff time for the recently created second fuels crew, which is also funded by a mix of grants and Redding Electric Utility funds. If awarded, the grant will stretch a two -year effort to a three and one -half-year effort.

Alternative Action

The City Council could decline to apply for the funds from this grant or provide staff with alternate direction.

MEETING DATE: August 4, 2025
ITEM NO. 4.6(a)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.6(a)--Adopt Resolution Authorizing Submittal of an Application for the CAL FIRE Wildfire Prevention Grant Program
Travis Menne, Director of
Community Services
Packet Pg. 33
Report to Redding City Council July 31, 2025
Re: 4.6(a)--Adopt Resolution re: Application for CAL FIRE Wildfire Prevention Grant Page 2

Background/Analysis

The CAL FIRE WPG Program provides funding for wildfire prevention projects and acti vities in and near fire threatened communities that focus on increasing the protection of people, structures, and communities. The funding allow s the City to re duce fire fuels on City -owned property identified as having high fuel loads. The project includes key sites in west Redding with approximately 150 acres that require work to remove vegetation and prevent undesired re - sprouting of invasive vegetation. If funded, activities will include reducing hazardous fuel loads in at -risk areas, followed by annual grazing. After initial treatments, undesired re -sprouted vegetation will be treated with appropriate herbicide applications. During treatments, areas will be re-evaluated to determine if additional fuel reduction is needed.

The proposed activities are c onsistent with the CAL FIRE WPG Program’s mission to avoid or reduce the severity of potential wildfires, thereby limiting greenhouse gas emissions. The project is also consistent with the recently adopted City’s Community Wildfire Protection Plan (CWPP), which identifies and prioritizes areas for hazardous fuel reduction treatments and recommend s the types and methods of treatment that will protect one or more at -risk communities and essential infrastructure. The CWPP prescribes ladder fuels reduction to m ost areas included in the project. The grant will fund the initial heavy-lift work on the identified sites so that staff will be able to adequately maintain the locations upon completion of the project , reducing the maintenance burden and allowing for more effective grazing.

Environmental Review

Accepting the CAL FIRE WPG Program funds is not a project defined under the California Environmental Quality Act (CEQA), and no further action is required. If accepted, staff will process the applicable CEQA determination based on the eligible locations and scope of work.

Council Priority/City Manager Goals

• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to m ake better decisions today.”

Attachments
^Resolution
Packet Pg. 34
RESOLUTION NO 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO ENTER A

CONTRACT WITH CAL FIRE ON BEHALF OF THE AGENCY TO

EXECUTE AGREEMENTS WITH THE CALIFORNIA DEPARTMENT

OF FORESTRY AND FIRE PROTECTION FOR THE REDDING READY

PROJECT

WHEREAS, the Governor of the State of California in cooperation with the California State Legislature has enacted State of California Climate Investment, which provides funds to the State of California and its political subdivisions for fire prevention programs; and

WHEREAS, the State Department of Forestry and Fire Protection (CAL FIRE), has been delegated the responsibility for the administration of the program within the State, setting up necessary procedures governing application by local agencies, non -profit organizations, and others under the program; and

WHEREAS, the applicant will enter into an agreement with the State of Cali fornia to carry out the Redding Ready project;

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Redding authorizes the City Manager, or designee, to execute all Grant Agreements and any amendments thereto with the California Department of Forestry and Fire Protection; and

1. Approves the filing of an application for “California Climate Investments Wildfire Prevention Grants Program”; and

2. Certifies that said applicant has or will have sufficient funds to operate and maintain the project; and

3. Certifies that funds under the jurisdiction of the City Council of the City of Redding are available to begin the project; and

4. Certifies that said applicant will expend grant funds prior to February 15, 2029; and

5. Appoints the City Manager, or their designee, to conduct all negotiations, execute and submit all documents including, but not limited to applications, amendments, payment requests and so on, which may be necessary for the completion of the aforementioned project.

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

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

Packet Pg. 35
Attachment: ^Resolution (4.6(a)--Adopt Resolution re: Application for CAL FIRE Wildfire Prevention Grant)

JACK MUNNS, Mayor

ATTEST: FORM APPROVED:

SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney Packet Pg. 36
Attachment: ^Resolution (4.6(a)--Adopt Resolution re: Application for CAL FIRE Wildfire Prevention Grant)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize and approve the following actions relative to the Outdoor Recreation Legacy Partnership Program for South City Park:
(1) Authorize the Mayor to execute a deed restriction; and (2) Find that this activity is exempt from environmental review under the California Environmental Quality Act, pursuant to Section 15061(b)(3) – Common Sense Exemption.

Fiscal Impact

Executing and recording the deed restriction is anticipated to cost less than $250 which will be paid with Community Services Department budgeted funds. There is no additional impact to the General Fund.

Alternative Action

The City Council (Council) could decline to record the deed restriction. The deed restriction is required under the approved grant agreement with the State of California Department of Parks and Recreation’s Office of Grants and Local Services (OGALS). Declining to record the deed restriction may prohibit OGALS from making any reimbursement payments to the City of Redding (City). Or, Council could also provide staff with alternate direction.

Background/Analysis

On October 15 , 202 4, Council authorized staff to accept a n Outdoor Recreation Legacy Partnership (ORLP) Program grant award of $3.52 million administered by the State of California Department of Parks and Recreation’s Office of Grants and Local Services to fund the concept to reimagine South City Park . Funding from the ORLP grant will cover phase one construction and/or renovation which includes:
• A playground;
• Multi-use green space and lounge areas;
MEETING DATE: August 4, 2025
ITEM NO. 4.6(b)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.6(b)--Authorize Deed Restriction on South City Park Travis Menne, Director of
Community Services
Packet Pg. 37
Report to Redding City Council July 31, 2025
Re: 4.6(b)--Authorize Deed Restriction on South City Park Page 2

• Pickleball court complex;
• Skate plaza;
• Basketball court;
• Fenced dog area;
• New bathrooms;
• Baseball field and bocce ball court improvements; and • Improvements to pathways, lighting, and landscaping throughout.

Pursuant to the ORLP Grant Contract, a deed must be recorded on the title of the prop erty. The document places restrictions on future use of the property. Most notably, these restrictions include barring the use of the area as mitigation or security for debt and the requirement to obtain state approval for any transfer/sale of the property . The goal is to restrict the park property for park uses in perpetuity to protect the investment of the California State Parks and the National Park Service.

In October 2024, the City Manager was authorized to execute the deed restriction, however, for transparency, the Mayor should execute the deed restriction. The deed restriction will be applied only to a portion of the property, as outlined in Exhibit A. Therefore, t he recommended actions have no impact on operations at Tiger Field or The Redding Lib rary and are required to receive reimbursement payments for the project activities.

Environmental Review

Staff has determined that the act ivity is exempt from review under the C alifornia Environmental Quality Act (CEQA) Guidelines, pursuant to Section 15061(b)(3) – Common Sense Exemption.

CEQA applies only to projects which have the potential for causing a significant effect on the environment. Execution of the deed restriction would ensure that the ORLPP grant funds are invested in park property that is not subject to l iens or land use changes. The acti vity has been reviewed and it can be seen with certainty that there is no possibility that th e activity may have a significant effect on the environment. No further action is required at this time . A separa te environmental review is being conducted for the future ORLPP grant funded park project.

Council Priority/City Manager Goals

• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” • Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”

Attachments
^Deed Restriction
Previous Staff Report_20241015_Accept ORLP Grant Fund Staff Report CEQA Compliance Certification Form
C-10617_ORLP Grant Contract
NOE Deed Restriction South City Park
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1 RECORDING REQUESTED BY:

California Department of Parks and Recreation
Office of Grants and Local Services

WHEN RECORDED MAIL TO:

Office of Grants and Local Services
PO Box 942896
Sacramento, CA 94296-0001
Attn: Katie Buesch
SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE

DEED RESTRICTION

I. WHEREAS, the City of Redding (hereinafter referred to as “Owner(s)” is/are recorded owner(s) of the real property described in Exhibit A, attached and incorporated herein by reference (hereinafter referred to as the “Property”); and
II. WHEREAS, the California Department of Parks and Recreation (hereinafter referred to as “DPR”) is a public agency created and existing under the authority of section 5001 of the California Public Resources Code (hereinafter referred to as the “PRC”); and III. WHEREAS, Owner(s) (or Grantee) applied to DPR for grant funds available pursuant to the Land and Water Conservation Fund, Competitive Program for improvements on the Property; and IV. WHEREAS, on _October 1, 2024, DPR’s Office of Grants and Local Services and the National Park Service approved Grant 06-01900, (hereinafter referred to as “Grant”) for improvements on the Property, subject to, among other conditions, recordation of this Deed Restriction on the Property; and
V. WHEREAS, but for the imposition of the Deed Restriction condition of the Grant, the Grant would not be consistent with the public purposes of the Land and Water Conservation Fund, Competitive Program and the funds that are the subject of the Grant could therefore not have been granted; and
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Attachment: ^Deed Restriction (4.6(b)--Authorize Deed Restriction on South City Park) 2 VI. WHEREAS, Owner(s) has/have elected to comply with the Deed Restriction of the Grant, so as to enable Owner(s), to receive the Grant funds and perform the work described in the Grant; NOW, THEREFORE, in consideration of the issuance of the Grant funds by DPR, the undersigned Owner(s) for themselves and for their heirs, assigns, and successors-in-interest, hereby irrevocably covenant(s) with DPR that the condition of the grant (set forth at paragraph(s) 1 through 5 and in Exhibit B hereto) shall at all times on and after the date on which this Deed Restriction is recorded constitute for all purposes covenants, conditions and restrictions on the use and enjoyment of the Property that are hereby attached to the deed to the Property as fully effective components thereof.

1. DURATION. (a) This Deed Restriction shall remain in full force and effect and shall bind Owner(s) and all their assigns or successors-in-interest for the period running from October 1, 2024 through perpetuity.

2. TAXES AND ASSESMENTS. It is intended that this Deed Restriction is irrevocable and shall constitute an enforceable restriction within the meaning of a) Article XIII, section 8, of the California Constitution; and b) section 402.1 of the California Revenue and Taxation Code or successor statute. Furthermore, this Deed Restriction shall be deemed to constitute a servitude upon and burden to the Property within the meaning of section 3712(d) of the California Revenue and Taxation Code, or successor statute, which survives a sale of tax-deeded property.

3. RIGHT OF ENTRY. DPR or its agent or employees may enter onto the Property at times reasonably acceptable to Owner(s) to ascertain whether the use restrictions set forth above are being observed.

4. REMEDIES. Any act, conveyance, contract, or authorization by Owner(s) whether written or oral which uses or would cause to be used or would permit use of the Property contrary to the terms of this Deed Restriction will be deemed a violation and a breach hereof. DPR may pursue any and all available legal and/or equitable remedies to enforce the terms and conditions of this Deed Restriction.

In the event of a breach, any forbearance on the part of DPR to enforce the terms and provisions hereof shall not be deemed a waiver of enforcement rights regarding any subsequent breach.

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Attachment: ^Deed Restriction (4.6(b)--Authorize Deed Restriction on South City Park) 3 5. SEVERABILITY. If any provision of these restrictions is held to be invalid, or for any reason becomes unenforceable, no other provision shall be affected or impaired.

Dated: ______________________, 20 ____

Owner(s) Name(s): ____________________________________________________________________

_____________________________________________________________________________________

Signed: ________________________________ Signed: ________________________________ ________________________________ ________________________________ PRINT/TYPE NAME & TITLE OF ABOVE PRINT/TYPE NAME & TITLE OF ABOVE (GRANTEE’S AUTHORIZED REPRESENTATIVE) (ADDITIONAL SIGNATURE, AS REQUIRED)

**NOTARY ACKNOWLEDGEMENT ON THE NEXT PAGE**

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Attachment: ^Deed Restriction (4.6(b)--Authorize Deed Restriction on South City Park) 4 State of California

County of _______________

On __________________ before me, __________________________, a Notary Public, personally appeared _____________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________ (Seal)

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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Attachment: ^Deed Restriction (4.6(b)--Authorize Deed Restriction on South City Park) Deed Restriction
South City Park

LEGAL DESCRIPTION

All that certain property in the City of Redding, County of Shasta, State of California being a portion of Section 14 of the P.B. Reading Grant, more particularly described as follows:

BEGINNING at the intersection of the northeasterly line of Parkview Avenue and the easterly line of South Market Street (State Highway 273) as described in the Correctory Grant Deed to the State of California recorded March 27, 2007 as Document Number 2007-0014477, Shasta County records;
Thence along said easterly line the following fourteen (14) numbered courses:

L1) Thence North 17°21’43” East, 59.71 feet to a point from which Point “A” as described in said Correctory Grant Deed bears South 17°21’43” W est, 75.11 feet; L2) Thence North 17°36’54” East, 56.11 feet;
C1) Thence along a tangent curve to the right having a radius of 97.45 feet, through a central angle of 26°36’20”, an arc length of 45.25 feet; L3) Thence non-tangent to last mentioned curve North 44°13’11” East, 16.90 feet; L4) Thence North 46°06’05” West, 10.45 feet;
C2) Thence along a non-tangent curve to the right, from a radial bearing of South 44°13’18” West, having a radius of 15.42 feet, through a central angle of 63°38’01”, an arc length of 17.13 feet;
L5) Thence non-tangent to last mentioned curve North 17°36’54” East, 42.98 feet; L6) Thence North 22°45’28” East, 131.78 feet;
L7) Thence North 17°36’51” East, 79.40 feet;
L8) Thence North 16°04’40” East, 40.76 feet;
L9) Thence North 14°49’47” East, 190.45 feet;
C3) Thence along a non-tangent curve to the right, from a radial bearing of North 75°30’59” West, having a radius of 185.21 feet, through a central angle of 79°29’40”, an arc length of 256.97 feet;
L10) Thence non-tangent to last mentioned curve South 85°44’10” East, 8.33 feet; C4) Thence along a non-tangent curve to the right, from a tangent that bears North 6°27’38” East, having a radius of 533.02 feet, through a central angle of 17°40’22”, an arc length Packet Pg. 43
Attachment: ^Deed Restriction (4.6(b)--Authorize Deed Restriction on South City Park) Deed Restriction
South City Park

of 164.41 feet to the “Point of Termination” as described in said Correctory Grant Deed and being also a point on the Southerly line of Cypress Avenue; Thence along said southerly line, non-tangent to last mentioned curve, South 64°24’00” East, 155.33 feet to the easterly line of an existing concrete walkway; Thence along said easterly line the following five (5) numbered courses:

L12) Thence South 23°33’23” West, 12.00 feet;
L13) Thence South 42°05’36” West, 137.96 feet;
L14) Thence South 18°20’13” West, 133.15 feet;
C5) Thence along a tangent curve to the right having a radius of 50.00 feet, through a central angle of 11°41’05”, an arc length of 10.20 feet; C6) Thence along a reverse curve having a radius of 50.00 feet, through a central angle of 71°29’46”, an arc length of 62.39 feet;
Thence leaving said easterly line South 59°58’31” West, 74.77 feet to point on an existing fence; Thence along said existing fence the following thirteen (13) numbered courses:

L16) Thence South 19°35’52” West, 80.20 feet;
L17) Thence South 63°50’18” West, 8.71 feet;
L18) Thence South 15°02’17” West, 5.12 feet;
L19) Thence South 27°20’41” East, 7.75 feet;
L20) Thence South 19°19’23” West, 94.36 feet;
L21) Thence South 43°06’09” West, 8.57 feet;
L22) Thence South 20°00’41” West, 7.68 feet;
L23) Thence South 8°27’00” West, 32.37 feet;
L24) Thence South 25°46’08” East, 12.79 feet;
L25) Thence South 32°44’47” West, 10.42 feet;
L26) Thence South 12°32’58” West, 84.32 feet;
L27) Thence South 19°20’23” West, 164.09 feet;
L28) Thence South 73°38’42” West, 8.21 feet;
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CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize and approve the following actions relative to the City of Redding’s Reimagining South City Park Project:
(1) Accept the Outdoor Recreation Legacy Partnership Program gr ant award of $3.52 million;
(2) Authorize the City Manager to execute a Deed Restriction requiring that South City Park remain an outdoor recreation use area in perpetuity;
(3) Adopt Resolution approving and adopting the 57th Amendment to City Budget Resolution No . 2023-060 appropriating $3,520,000 for the Outdoor Recreation Legacy Partnership Program grant for the Reimagining South City Park project for fiscal year 2024-25; and
(4) Authorize the City Manager, or designee, to execute the Grant Contract (C8968023) and all subsequent documentation relative to the grant.

Fiscal Impact

The Outdoor Recreation Legacy Partnership (ORLP) Program grant award of $3.52 million will cover 50 percent of phase one construction of the South City Park (Park) improvements. The ORLP P rogram requires a 50 percent match, funded by a combination of Park Development funds (Park In -Lieu fund ($300,000) and the Park Development fund ($800,000 ) and a $2.4 million Community Development Block Grant (CDBG) Section 108 Loan, as authorized by the City Council (Council) at the November 1, 2022 meeting. In addition, $20,000 in match funding will be contributed by the Redding Parks and Trails Foundation.

The ORLP Program grant is reimbursement -based, as proposed, the General Fund w ould cash flow the project until reimbursement requests are processed. The ORLP Program grant will not cover overhead beyond direct costs for salary and benefits. Staff is examining alternative approaches to reduce or eliminate this overhead expense.

MEETING DATE: October 15, 2024
ITEM NO. 4.6(a)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.6(a)--Accept Grant Contract from the National Park Service and Adopt a Budget Resolution Appropriating Funds for the Reimagining South City Park Project Travis Menne, Director of
Community Services
Packet Pg. 70
Attachment: Previous Staff Report_20241015_Accept ORLP Grant Fund Staff Report (4.6(b)--Authorize Deed Restriction on South City Park) Report to Redding City Council October 8, 2024
Re: 4.6(a)--Accept Grant from the National Park Service for South City Park and Adopt Budget Resolution Page 2

Alternative Action

The City Council (Council) could choose not to accept the ORLP Program grant award, limiting the ability to move forward with the Park's phase one construction, or provide staff with alternate direction.

Background/Analysis

On June 21, 2022, Council approved a concept to reimagine South City Park and authorized staff to refine the concept, develop a program, and estimate project costs with the assistance of Project for Public Spaces. On December 6, 2022, Council approved the South City Park Activation Plan and the submission of an application for an ORLP Program grant. Staff submitted the ORLP Program grant application, which was recommended by the State of California Department of Parks and Recreation to the National Parks Service for the next competitive round.

In the meantime, the National Park Service encouraged staff to apply for a Land and Water Conservation Fund (LWCF) grant as a backup strategy, knowing that the National Park Service, which funds both the ORLP and the LWCF programs, would only fund o ne grant per project. On June 6, 2023, Council approved the LWCF grant application to the National Park Service for funding of approximately $3.5 million to move forward with phase one construction of the Reimagining South City Park Project. With the notic e of award of the ORLP grant from the National Park Service, the City will withdraw its application for the LWCF gran t, per the direction of NPS staff

Funding from the ORLP grant will cover phase one construction and/or renovation which includes:

• A playground;
• Multi-use green space and lounge areas;
• Pickleball court complex;
• Skate plaza;
• Basketball court;
• Fenced dog area;
• New bathrooms;
• Baseball field and bocce ball court improvements; and • Improvements to pathways, lighting, and landscaping throughout.

It is important to note that the successful application of the grant includes a deed restriction requiring that South City Park remain an outdoor recreation use area, in perpetuity.

Environmental Review

This action is not a proje ct as defined under the California Environmental Quality Act (CEQA), and no further action is required. On December 6, 2022, Council found that the project is categorically exempt from review under the CEQA Guidelines, per Sections 15301(d) – Existing Facilities, 15302(c) – Replacement or Reconstruction, and 15303(d & e) - New Construction or Conversion of Existing Structures.

Packet Pg. 71
Attachment: Previous Staff Report_20241015_Accept ORLP Grant Fund Staff Report (4.6(b)--Authorize Deed Restriction on South City Park) Report to Redding City Council October 8, 2024
Re: 4.6(a)--Accept Grant from the National Park Service for South City Park and Adopt Budget Resolution Page 3

Council Priority/City Manager Goals

• Budget and Financial Management – “Achieve balanced and stable 10 -year Financial Plans for all funds.”
• 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.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”

Attachments
^Resolution
Grant Contract for Reimagining South City Park (C8968023) - unsigned Previous Staff Report June 21, 2022 - Concept Plan and Programming Previous Staff Report November 1, 2022 - Approve Funding Changes Previous Staff Report December 6, 2022 - Approve Concept Plan and ORLP Grant Application Previous Staff Report June 6, 2023 - LWCF Grant Application Previous Staff Report May 7, 2024 - Appropriating Funds Packet Pg. 72
Attachment: Previous Staff Report_20241015_Accept ORLP Grant Fund Staff Report (4.6(b)--Authorize Deed Restriction on South City Park)

CEQA Compliance Certification Form
APPLICANT/GRANTEE: PROJECT Name:

PROJECT Address:

When was CEQA analysis completed for this PROJECT? Date:

What documents were completed for this PROJECT’S CEQA analysis (check all that apply)? Initial Study Environmental Impact Report
Negative Declaration Mitigated Negative Declaration
Notice of Exemption Notice of Determination
State Clearinghouse Receipt Other:

Please attach all checked documents.

If these forms were not completed, please attach a letter from the Lead Agency explaining why, certifying the PROJECT has complied with CEQA, and noting the date that the PROJECT was approved by the Lead Agency.

Lead Agency Contact Information:

Agency Name: Contact Person:

Mailing Address:

Phone: Email:

Certification:

I hereby certify that the Lead Agency listed above has determined that it has complied with the California Environmental Quality Act (CEQA) for the PROJECT identified above and that the PROJECT is described in adequate and sufficient detail to allow the PROJECT’S construction or ACQUISITION.

I certify that the CEQA analysis for this PROJECT encompasses all aspects of the work to be completed with GRANT funds.

AUTHORIZED REPRESENTATIVE Date AUTHORIZED REPRESENTATIVE (Signature) (Printed Name and Title)

11.28.22 City of Redding
900 Parkview Ave
1/12/23
✔
✔
Travis Menne
City of Redding
777 Cypress Ave
[email protected]
530-245-7176
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Attachment: CEQA Compliance Certification Form (4.6(b)--Authorize Deed Restriction on South City Park) Packet Pg. 74
Attachment: C-10617_ORLP Grant Contract (4.6(b)--Authorize Deed Restriction on South City Park) Packet Pg. 75
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Attachment: NOE Deed Restriction South City Park (4.6(b)--Authorize Deed Restriction on South City Park)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize and approve the following actions relative to Consulting and Professional Services Contract (C -7412) with Morrison Structures, Inc. for the Sacramento Drive Bridge at Olney Creek Replacement Project:
(1) Approve the Third Amendment to the Consulting and Professional Services Contract in the amount of $291,054.02 for a total not-to-exceed fee of $574,095.93; (2) Authorize the City Manager, or designee, to execute the Third Amendment; and (3) Authorize the City Manager, or designee, to approve additional contract amendments not- to-exceed $50,000.

Fiscal Impact

The total project cost of the Sacramento Drive Road Bridge at Olney Creek Replacement Project (Project) is estimated at approximately $ 10.5 million dollars. The project is funded with 88.53 percent coming from the Federal Highway Bridge Program and the remainder being matched by Toll Credits. All items of work that are within the project scope and considered participating by the Bridge Program , will be fully funded . Any work that is determined to be non-participating will be funded by the City of Redding’s (City) Transportation Impact Fee fund or the appropriate Utility Division’s Maintenance fund. The total project cost includes a consultant contract with Morrison Structures Inc., (Morrison) to provide bridge design services through construction. This amendment will increase Morrison’s consultant contract by $ 291,054.02 for a total not to exceed amount of $574,095.93.

MEETING DATE: August 4, 2025
ITEM NO. 4.11(a)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.11(a)--Approve the Third Amendment to Consulting and Professional Services Contract (C-7412) for the Sacramento Drive Bridge at Olney Creek Replacement Project Michael Webb, Public Works
Director
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Report to Redding City Council July 30, 2025
Re: 4.11(a)--Approve the Third Amendment to Contract (C-7412) Page 2

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

Original
Contract
Amount
3rd Amendment
Adjustment
Revised
Total
$283,041.91 $291,054.02 $574,095.93

Alternative Action

The City Council (Council) may choose not to authorize the amendment and provide staff with an alternate direction. Without the proposed amendment, Morrison will not be able to complete the bridge design or provide services during the construction phase of the project. This alternative would delay or likely eliminate the replacement of this bridge and jeopardize federal funding.

Background Analysis

In October 2017, an engineering services contract was executed with Morrison for the project.

In March 2020, and again in December 2022, administrative amendments were executed to allow for salary increases and update the end date of the contract, respectively.

Over the course of the preliminary engineering and environmental phase of the project there has been a substantial increase in the professional services required, m ainly associated with the extended project duration and environmental design support related to additional and extensive revisions to environmental studies. As the consultant is approaching the end of the environmental phase they have estimated that the project will extend until 2027 for construction completion.

Therefore, for Morrison to continue to provid e the services originally outlined in the contract, as well as address the multiple revisions to the environmental studies being required by the California Department of Transportation (Cal trans), additional funds are necessary as requested in this amendment. The amendment has been approved as to form by the City Attorney.

The Sacramento Drive bridge was constructed in 19 54 and is currently designated as “structurally deficient” per Caltrans’ Bridge Inspection Reports. This designation is largely due to th e amount of traffic using the bridge and the lack of shoulders, pedestrian facilities, in addition to the lack of freeboard to prevent overtopping the bridge during the 50 year and greater storm events. The project will replace the existing 3 0-foot-wide, 2-lane bridge with a 48-foot- wide bridge that includes two 12 -foot travel lanes, two 6-foot shoulders, and two 6-foot Type 26 sidewalk barriers. These improvements meet the requirements of both the American Association of State Highway and Transportation Officials and the City.

Environmental Review

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

Council Priority/City Manager Goals

This is a routine operational item.

Packet Pg. 98
Report to Redding City Council July 30, 2025
Re: 4.11(a)--Approve the Third Amendment to Contract (C-7412) Page 3

Attachments
C-7412 3rd Amendment
C-7412 Amendment 2
C-7412 Amendment 1
Contract C-7412
Packet Pg. 99
Packet Pg. 100
Attachment: C-7412 3rd Amendment (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 101
Attachment: C-7412 3rd Amendment (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 102
Attachment: C-7412 3rd Amendment (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 103
Attachment: C-7412 3rd Amendment (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 104
Attachment: C-7412 3rd Amendment (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 105
Attachment: C-7412 3rd Amendment (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 106
Attachment: C-7412 Amendment 2 (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 107
Attachment: C-7412 Amendment 2 (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 108
Attachment: C-7412 Amendment 2 (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 109
Attachment: C-7412 Amendment 1 (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 110
Attachment: C-7412 Amendment 1 (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 111
Attachment: C-7412 Amendment 1 (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 112
Attachment: Contract C-7412 (4.11(a)--Approve the Third Amendment to Contract (C-7412)) Packet Pg. 113
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Attachment: Contract C-7412 (4.11(a)--Approve the Third Amendment to Contract (C-7412))

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Approve and authorize the purchase of residential carts, commercial containers, lids and roll off boxes, on an as -needed basis, utilizing the Sourcewell and HGACBuy Cooperative contract pricing for a total amount not-to-exceed $1,230,000 for the City of Redding Solid Waste Utility for Fiscal Years 2025-26 and 2026-27.

Fiscal Impact

For the new budget cycle , the Solid Waste Utility (Utility) budgeted $1,230,000 (Fiscal Year 2025-26 - $605,000 and Fiscal Year 2026-27 - $625,000) for the replacement of residential carts, roll off boxes, commercial containers, organic containers, lids, and other parts.

Alternative Action

The City Council (Council) may choose not to authorize the purchase using the Sourcewell and HGACBuy cooperative agreements and contract pricing, and direct staff to use the City of Redding’s (City) bid process, which would result in delaying the acquisition of the additional carts, containers, and roll off boxes and increase staff time utilized for such purchases.

Background/Analysis

Currently, the Utility has approximately 105,000 residential carts in service, 6,500 metal and plastic commercial containers, and 190 roll off boxes. The replacement cost of residential carts is approximately $75 each and commercial containers range from $400 to $2,500 each , depending on size. The cost for roll -off boxes ranges from $8,000 to $14,000 each to replace. In addition, there is a need to purchase carts for organics collection per Senate Bill 1383 at a cost of approximately $220 each and organic commercial containers that range from $800 to $1,500 each.

MEETING DATE: August 4, 2025
ITEM NO. 4.11(b)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.11(b)--Approve and Authorize the Purchase of Waste Handling Equipment Using Sourcewell and HGACBuy Contract Pricing
Michael Webb, Public Works
Director
Packet Pg. 155
Report to Redding City Council July 30, 2025
Re: 4.11(b)--Approve and Authorize the Purchase of Waste Handling Equipment Using Sourcewell and HGACBuy Page 2

Staff performs maintenance and repairs to carts, containers and roll -off boxes in order to keep them in service for as long as possible. Repairs include ta sks such as replacing the wheels and/or lids of the residential carts and commercial containers, and also replacing and welding new bottoms and floors onto roll -off boxes and commercial containers. New carts include a 12 -year warranty period for the body of the cart and commercial containers include a three-year warranty on the body. Staff tracks the warranty periods in order to replace carts or containers that fail prematurely. Eventually, replacements are necessary because containers rust beyond reasonabl e repair, residential cart bodies break, carts go missing, catastrophic events occur, and new building developments are implemented resulting in the need to add or replace containers and carts.

Waste handling equipment is available under Sourcewell and H GACBuy competitively bid contracts. Sourcewell and HGACBuy develop national competitive solicitations that meet or exceed local standards, and offers its members the benefits derived from cooperative purchasing.

Using the Sourcewell and HGACBuy cooperative contract to purchase equipment saves significant staff time needed to prepare bid specifications and solicit individual quotations from vendors. The City also receives a significant price discount due to economies of scale realized through the volume of purchases on a multi-agency cooperative contract.

Due to the total amount that will be expended, staff is seeking Council’s approval for the purchase of the Utility’s cart and containers products utilizing the Sourc ewell and HGACBuy cooperative agreements.

Environmental Review

The purchase of materials and equipment is not a project as 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.

Packet Pg. 156

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize and approve the following actions to approve increases to the project budget in the amount of $220,000 for the completion of Bid Schedule No. 5357 , City Hall Fire Alarm Replacement Project, as outlined below for additional project costs:
(1) Adopt Resolution approving and adopting the 4 th Amendment to City Budget Resolution No. 2025-049 appropriating an additional $220,000;
(2) Increase of $ 83,000 to the construction management budget, bringing the construction management total to $112,000; and
(3) Increase of $137,000 to the construction contingency budget, bringing the construction contingency budget to $152,000.

Fiscal Impact

The City Hall Fire Alarm Replacement Project (Project) cost is being increased by $220 ,000 over the original project budget of $235,333 bring ing the total project costs to $455,333. During Fiscal Year 2024 -25 Building Maintenance had savings in excess of the additional amount requested, the savings will be an increase to the Building Mainte nance Reserves. Therefore, this increase will be funded by the City of Redding’s (City) Building Maintenance available Fund Reserves.

MEETING DATE: August 4, 2025
ITEM NO. 4.11(c)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.11(c)--Adopt Resolution and Approve Increase to Project Budget for City Hall Fire Alarm Replacement Project
Michael Webb, Public Works
Director
Packet Pg. 157
Report to Redding City Council July 31, 2025
Re: 4.11(c)--Approve Increase to Budget for City Hall Fire Alarm Replacement Project Page 2

Current Authorized Requested Increase New Authorized
Project Development $34,000 $0 $34,000
Construction Contract $142,333 $0 $142,333
Construction Contingency $15,000 $137,000 $152,000
Construction Management $44,000 $83,000 $127,000
Total $235,333 $220,000 $455,333

Alternative Action

The City Council (Council) may choose not to approve the request and prov ide alternative direction to staff.

Background/Analysis

On April 18, 2023, the City Manager awarded the construction contract for the project to Conti, LLC, in the amount of $142,333. This project was awarded in accordance with Ordinance No. 2625 - the City’s criteria for informal award.

The project consists of the replacement of the City Hall fire alarm system which includes , but is not limited to , removal and disposal of existing equipment, and installation of control panels, power supplies, detector s, notification appliances, including installation of conduits and conductors, and all other system devices.

During the course of construction, unforeseen conditions warranted changes to meet the project’s intent. These unanticipated changes require addit ional contingency funds to cover contract change order (CCO) costs for the following:

• Modifications to the new fire alarm control panel to retain full notification , sprinkler system function and monitoring throughout City Hall as a temporary system. It w as originally assumed the existing system could be taken off -line one floor at a time, modified, and connected to the new control panel. However, the existing system was installed such that circuits served multiple floors rather than a single floor. The ex isting system also had about 70 error codes that could not be cleared because the control panel was no longer functioning and needed replacement. Without a temporary system in place, City Hall would not have a functional fire alarm system until the project was complete;

• Several duct detectors were moved from their existing locations to make installation, future maintenance and testing, and replacement more convenient. This is done because of existing obstructions or interferences with other commodities or supports. The holes remaining after the existing detectors are removed, need to be patched so they do not affect performance of the buildings HVAC system;

Packet Pg. 158
Report to Redding City Council July 31, 2025
Re: 4.11(c)--Approve Increase to Budget for City Hall Fire Alarm Replacement Project Page 3

• Various modifications have been made within the City Hall structure since it was built.

Access to several existing detectors are no longer available due to interior wall construction, lack of access panels, or installation of other building system components.

This required additional time for the contractor to locate, create access, and install the new detectors;

• Procuring and installing additional equipment and devices necessary for complete system functionality which had not been identified or anticipated during design; and

• Additional construction management and inspection budget is necessary to cover the extended timeline and increased workload for the project resulting from these CCOs.

While the new fire panel is currently operating in a temporary state, there are insufficient funds available in the existing project budget to complete the CCOs identified above and bring the fire panel to complete system function. Although some change orders are expected with building projects of similar scope, due to numerous undocumented changes over the lifespan of City Hall , the amount of differing site cond itions discovered on this project are above average. This can be attributed to original building as -built drawing inaccuracies, changes to floor layout to suit the needs of departments not captured in as -built drawing revisions , and limited resources durin g project design to fully capture existing conditions.

It is very unlikely these existing conditions would have been able to be identified until a contractor actually opened portions of the building to complete the work. Due to these contributing factors, the funding increase to the project is imperative in order to complete the work to have a fully functional fire alarm system at City Hall.

Currently, the project is temporarily suspended due to the lack of funds needed to complete the effort. However, prior to the temporary suspension, the contractor incurred Liquidated Damages (LDs) for not completing available contract work within the contract time allowed. Although, some of the LDs will be nullified due to increases in contract days associated with th e CCOs, staff anticipates that the contractor may still be assessed LDs at the end of the project. These potential LDs may result in a credit back to the project’s overall budget.

Environmental Review

This action, a budget increase, is not a project as defined by the California Environmental Quality Act (CEQA). On November 10, 2022, the City’s Environmental Team determined that the project is categorically exempt from review under the CEQA, pursuant to Section 15301(a) – Existing Facilities. No further action is required.

Council Priority/City Manager Goals

• This agenda item is a routine operation item.

Attachments
^Budget Resolution
Award Letter 042623
Packet Pg. 159
Resolution No. 2025 - ____________

A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 4th AMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049 APPROPRIATING $220,000 FOR THE CITY HALL FIRE ALARM REPLACEMENT PROJECT FOR FISCAL YEAR 2025-26.

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING

THAT Budget Resolution No. 2025-049 be and is hereby amended as follows:

FUND DIVISION DESCRIPTION INCREASE DECREASE
335 3351 Building Maintenance $220,000

THAT account titles and numbers requiring adjustments by this Resolution are as follows:

USE SOURCE

OF FUNDS OF FUNDS
Increase (Decrease) Revenue
335-0000-2910000-00000 Fund Balance 220,000$
Increase Expenditures
335-3351-7300004-00000 Building Improvements 220,000$
Total 220,000$ 220,000$

THAT the purpose is to appropriate $220,000 for the City Hall Fire Alarm Replacement Project for fiscal year 2025-26.

I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 4th day of August, 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. 160
Attachment: ^Budget Resolution (4.11(c)--Approve Increase to Budget for City Hall Fire Alarm Replacement Project) Packet Pg. 161
Attachment: Award Letter 042623 (4.11(c)--Approve Increase to Budget for City Hall Fire Alarm Replacement Project) Packet Pg. 162
Attachment: Award Letter 042623 (4.11(c)--Approve Increase to Budget for City Hall Fire Alarm Replacement Project) Packet Pg. 163
Attachment: Award Letter 042623 (4.11(c)--Approve Increase to Budget for City Hall Fire Alarm Replacement Project) Packet Pg. 164
Attachment: Award Letter 042623 (4.11(c)--Approve Increase to Budget for City Hall Fire Alarm Replacement Project)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize and approve the following actions relative to Bid Schedule No. 5609 Canter Court Sewer Project:
(1) Award to Axner Excavating Inc. in the amount of $273,456; (2) Approve an additional $89,500 to cover the cost of administration and inspection fees; (3) Approve $142,000 for project development costs;
(4) Approve $40,000 to provide construction contingency funding; and (5) Authorize the City Manager , or designee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $25,000.

Fiscal Impact

The Canter Court Sewer Project (Project) is being funded by the City of Redding’s (City) Wastewater Utility. The Wastewater Utility has a sufficient capital outlay budget in fiscal year 2024-25 for this project and funding the project will not impact other activities or projects.

Cost Summary
Item Estimated
Project Development Costs $142,000
Construction Contract + Contingency $313,456
Contract Administration, Inspection, Testing $89,500
Additional City Manager Authority $25,000
Total Project Costs $569,956
Total Project Budget $569,956

Project cost components are estimates and some shifting of the project development, construction management, and construction contingency funds may be necess ary to balance the project within the approved budget.

MEETING DATE: August 4, 2025
ITEM NO. 4.11(d)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.11(d)--Award Bid Negotiation No. 5609 Canter Court Sewer Project Michael Webb, Public Works
Director
Packet Pg. 165
Report to Redding City Council July 30, 2025
Re: 4.11(d)--Award BN No. 5609 Canter Court Sewer Project Page 2

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 sewer main could be reduced, decreasing reliability for City customers and increasing potential risk of sanitary sewer overflows into Churn Creek.

Background/Analysis

The current sewer main crossing under Churn Creek is made of an acrylonitrile butadiene styrene (ABS) material susceptible to becoming brittle, cracking and breaking over time. This could lead to leaks and other problems in the sewer system.

The project include s rehabilitation of the sewer manholes , including coating the interior with epoxy, replacing the ABS sewer siphon main with H igh density polyethylene pipe (HDPE) pipe and repairing the all -weather road to provide access to the manholes. HDPE pipe offers excellent durability, resistance to corrosion and chemicals, flexibility, strength impact res istance, and long service life.

Attached is a tabulation of bids received and opened on July 17, 2025, for construction of the project. The low bid in the amount of $ 273,456 was received from Axner Excavating Inc. of Redding, California. The engineer's estimate was $238,370. Total project development costs are estimated to be $ 142,000. Project development costs include engineering , right of way and environmental for the project.

Environmental Review

This action, bid award, is not a project as defined by the California Environmental Quality Act (CEQA). On October 15, 2024, City Council adopted the Mitigated Negative Declaration and the Mitigation Monitoring and Environmental Commitment Program; and approved the Canter Court Sewer Project, thereby satisfyin g the requirements of the CEQA Guidelines §15074. No further action is required.

Council Priority/City Manager Goals

This agenda item is a routine operational item.

Attachments
^Location Map
^Bid Tab
Previous Staff Report 10-15-2024
Packet Pg. 166

UNDERLINE WAY

SUNWOOD DR

SUNWOOD DRMORNINGSUN DRMORNINGSUN DR

GALAXY WAYELIN CTBRIGHTWOOD DR

BLUFFSIDE CT

SOMERSET CT

VEGA ST

SOMERSET AVE

CANTERBURY DR

SODA SPRINGS CIRCHERRYWOOD DR

CANTER CT

SOMERSET CT

CAMBRIA DRLAWRENCE RD

CITY OF REDDINGLOCATION MAPEXHIBIT APUBLIC WORKSDEPARTMENT

CHURN CREEK

VICTOR AVEPROJECTLOCATION

CHURN CREEK

CANTER COURT SEWER PROJECT
Packet Pg. 167
Attachment: ^Location Map (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) BID TABULATION FOR:

CANTER COURT SEWER PROJECT
Bid Schedule No.: 5609

ENGINEER'S EST
7/18/2025 UNIT UNIT UNIT

ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 Water Pollution Control LS 1 $3,520.00 $3,520.00 $4,500.00 $4,500.00 $21,750.00 $21,750.00 2 Contractor Supplied Biologist LS 1 $5,500.00 $5,500.00 $41,504.00 $41,504.00 $3,300.00 $3,300.00 3 Sanitary Sewer (6" HDPE) LF 675 $220.00 $148,500.00 $216.00 $145,800.00 $206.00 $139,050.00 4 Rehab Manhole (Sewer, Type 1-4') EA 2 $9,350.00 $18,700.00 $20,829.00 $41,658.00 $13,000.00 $26,000.00 5 Remove Manhole EA 1 $5,500.00 $5,500.00 $7,381.00 $7,381.00 $8,500.00 $8,500.00 6 Aggregate Base (Class 2) CY 130 $165.00 $21,450.00 $126.00 $16,380.00 $160.00 $20,800.00 7 Construction Area Signs EA 4 $660.00 $2,640.00 $674.00 $2,696.00 $350.00 $1,400.00 8 Project Funding Sign EA 1 $1,760.00 $1,760.00 $674.00 $674.00 $1,500.00 $1,500.00 9 Bypass Pumping LS 1 $8,800.00 $8,800.00 $5,667.00 $5,667.00 $44,000.00 $44,000.00 10 Trench Sheeting & Shoring LS 1 $22,000.00 $22,000.00 $7,196.00 $7,196.00 $13,000.00 $13,000.00 TOTAL - CONTRACT ITEMS $238,370.00 $273,456.00 $279,300.00 Allen Gill Construction, Inc

UNIT UNIT UNIT

ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 Water Pollution Control LS 1 $8,138.79 $8,138.79 $30,000.00 $30,000.00 $10,956.32 $10,956.32 2 Contractor Supplied Biologist LS 1 $17,500.00 $17,500.00 $5,000.00 $5,000.00 $44,280.00 $44,280.00 3 Sanitary Sewer (6" HDPE) LF 675 $247.35 $166,961.25 $218.00 $147,150.00 $272.45 $183,903.75 4 Rehab Manhole (Sewer, Type 1-4') EA 2 $13,030.10 $26,060.20 $15,000.00 $30,000.00 $15,985.25 $31,970.50 5 Remove Manhole EA 1 $4,560.95 $4,560.95 $7,000.00 $7,000.00 $3,987.13 $3,987.13 6 Aggregate Base (Class 2) CY 130 $220.82 $28,706.60 $352.00 $45,760.00 $193.62 $25,170.60 7 Construction Area Signs EA 4 $418.75 $1,675.00 $1,000.00 $4,000.00 $774.75 $3,099.00 8 Project Funding Sign EA 1 $1,250.00 $1,250.00 $2,000.00 $2,000.00 $3,540.00 $3,540.00 9 Bypass Pumping LS 1 $39,043.91 $39,043.91 $45,000.00 $45,000.00 $52,784.51 $52,784.51 10 Trench Sheeting & Shoring LS 1 $5,496.32 $5,496.32 $5,000.00 $5,000.00 $6,337.37 $6,337.37 TOTAL - CONTRACT ITEMS $299,393.02 $320,910.00 $366,029.18 Axner Excavating Inc Sunrise Excavating
Site Work Solutions
Eddie Axner Construction,
Inc

Attachment: ^Bid Tab (4.11(d)--Award BN No. 5609 Canter Court Sewer Project)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Approve and authorize the following actions relative to the City of Redding Canter Court Sewer Project:
(1) Adopt the Mitigated Negative Declaration and the Mitigation Monitoring and Environmental Commitment Program; and
(2) Approve the Canter Court Sewer Project as described, thereby satisfying the requirements of the California Environmental Quality Act Guidelines §15074.

Fiscal Impact

Approval of the Canter Court Sewer Project (project) along with adoption of the Mitigated Negative Declaration (MND) and the Mitigation Monitoring and Environmental Commitment Program (MMP) allows the project to move toward the final design and construction phases.

There is no fiscal impact as a direct result of adopting the MND, MMP, and approving the project.

The project is estimated to cost approximately $290,475 and as budgeted, will be funded through the Public Works Wastewater Utility fund.

Alternative Action

The City C ouncil (Council) may choose not to adopt the MND and the MMP, and not approve the project as described. Without approval, the project would not be able to proceed as a City of Redding (City) project, as it would not be in compliance with the California Env ironmental Quality Act (CEQA).

MEETING DATE: October 15, 2024
ITEM NO. 4.11(a)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.11(a)--Adopt the Mitigated Negative Declaration and Mitigation Monitoring Program; and Approve the Canter Court Sewer Project
Michael Webb, Public Works
Director

APPROVED
Packet Pg. 169
Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) Report to Redding City Council October 8, 2024
Re: 4.11(a)--Canter Court Sewer Project Page 2

Background

This project will replace two , 6-inch sewer siphons along Churn Creek in southeast Redding.

Replacement of the siphons are needed to address the deteriorating and failing pipes. The project is located on City-owned property west of Canter Court and east of Cambria Drive.

This project consists of the removal and replacement of the two existing 348 -foot-long, 6-inch- diameter concrete-encased sewer siphons. The siphons would be excavated and replaced in the same alignment. An open -trench method requiring a work area approximately 20 -feet wide and an excavation depth of approximately 12 -feet is anticipated be used along the entire length of pipe to be replaced. The total length of the trench is estimated to be 348 -feet in length, including an estimated 83 -foot Churn Creek crossing. The two existing 6 -inch-diameter acrylonitrile butadiene styrene siphon pipes will be removed and replaced with new 6 -inch-diameter high - density polyethylene (HDPE) pipes. Work also incl udes the removal, replacement, and rehabilitation of three manholes.

The existing 10 - to 12-foot-wide maintenance access road accessed via Cambria Drive will be improved by adding gravel to create an all -weather maintenance access. Additionally, a 120 - foot-long by 25-foot-wide permanent easement will be obtained to accommodate a portion of the improved maintenance road.

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

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

The IS/MND/MMP documents were sent to the State Clearinghouse for a 30 -day public review period and distribution to pertinent state agencies. They were sent to local resource agenci es, the Shasta County Clerk, and posted on the Public Works Department website. A public notice was also sent to landowners in the vicinity of the project and posted in the local newspaper. No comment letters were received during the state agency or public review periods.

Environmental Review

Pursuant to CEQA, t he City is the lead agency for the project. As the lead CEQA agency, the Council is authorized to adopt the MND per Redding Municipal Code Section §18.24.070.E and state law. Upon adoption of the MND and approval of the Project by the Council, a Notice of Determination will be filed with the Shasta County Clerk’s Office and the State Clearinghouse, completing the environmental review process.

APPROVED
Packet Pg. 170
Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) Report to Redding City Council October 8, 2024
Re: 4.11(a)--Canter Court Sewer Project Page 3

The IS/MND is available in the Public Works Department and is currently available online at :
https://www.cityofredding.gov/government/departments/public_works/environmental_managem ent/index.php.

Council Priority/City Manager Goal

This agenda item is a routine operational item.

Attachments
^Location Map
^Mitigated Negative Declaration
^Mitigation Monitoring And Environmental Commitment Program

APPROVED
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Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project)

HARPOLE RDALMA AVE

SOMERSET AVE

CAMBRIA DR

MORNINGSUN DR

CANTERBURY DR

SODA SPRINGS CIR

CHERRYWOOD DR

ELIN CT

BRIGHTWOOD DR

CANTER CT

EMPRESS LN

BLUFFSIDE CT

INDIO WAY

SOMERSET CT

UNDERLINE WAY

SUMMERFIELD CT

ROESNER AVE

GALAXY WAY
MTG. DATE:

ITEM:

ATTACHMENT:

LOCATION MAPGIS DIVISION

INFORMATION TECHNOLOGY DEPARTMENT
DATE PRODUCED:
0 400200 Feet-
P:\Engineering\ProProjects\3858 Canter Ct_Location Map
JULY 2, 2024 CANTER COURT SEWER PROJECT
3858 CANTERBURY DR
AP# 068-600-047

APPROVED
Packet Pg. 172
Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) Public Works
Engineering Division
530.225.4170
530.245.7024

NOTICE OF INTENT TO ADOPT A MITIGATED NEGATIVE DECLARATION FOR THE

CANTER COURT SEWER PROJECT
Notice is hereby given that the public is invited to review and comment on the Initial Study (IS) and proposed Mitigated Negative Declaration (MND), purs uant to the California Environmental Quality Act (CEQA), for the proposed Canter Court Sewer Project (project). The proposed Mitigated Negative Declaration does not signify approval or disapproval of this project. The City of Redding will consider the proposed Mitigated Negative Declaration together with any comments received during the public review process to determine whether the proposed project sh ould be approved as proposed, if additional studies are required, or if the project should be deferred.

The project is in south-central Redding, Shasta C ounty, California. The project site is located along the existing City access easement on the west, on the west and east side of Churn Creek, and within the Churn Creek streambed. The project sites are located in the Redding Quadrangle at Township 32 north, Range 4 west, Section 31; Township 32 north, Range 4 west, Section 8 (latitude 40.552698º, longitude 122.342549º at the approximate center point of the project sites).

The purpose of the project is to replace two existing sewer siphons that run under Churn Creek.

Replacement of these siphons is needed to address age-related deterioration. The project will remove and replace two 6-inch, 348-foot long sewer pipes beneath Churn Creek; as well as remove one manhole, replace one manhole, and rehabilitate one manhole, and gravel the existing access road. Work will include vegetation removal, excavation, sediment removal, vegetation planting, and hydro-seed application. Work will occur on City property or within easements. Construction is anticipated to take one season and will be completed in the summer of 2025. Work will occur on City property or within easements.

The comment period on the IS/MND commences on September 2, 2024 and will end on October 2, 2024.

Comments must be in writing and will be accepted until 5 p.m. on October 2, 2024. Comments may be sent to Tiffany Lightle, Associate Environmental Specialist, 777 Cypress Avenue, Redding, CA 96001, or via email to [email protected].

The Initial Study and Mitigated Negative Declaration are available for review online at http://www.cityofredding.org/departments/public-works/environmental-management, and available for review or purchase at the City of Redding Public Works Department, 777 Cypress Avenue, Redding, California.

CITY OF REDDING
777 Cypress Avenue, Redd ing, CA 96001
PO BOX 496071, Redd i ng, CA 96049-6071
cityofredding.org

APPROVED
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Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project)

October 2024

MITIGATED NEGATIVE DECLARATION

CANTER COURT SEWER PROJECT
(STATE CLEARINGHOUSE NO. 20244080916)

SUBJECT
Canter Court Sewer Project

PROJECT DESCRIPTION
T
he City of Redding (City) is proposing the Canter Court Sewer Project in the City of Redding, Shasta County,
California. The purpose of the proj ect is to replace two existing sewer siphons that run under Churn
Creek. Replacement of these siphons is needed to address age-related deterioration.

The proj
ect would consist of the removal and replacement of the two existing 348-f oot-long, 6-inch- diamet
er concrete-encased sewer siphons across Chu rn Creek. The siphons would be excavated and replaced in the same alignment. An open-trench method requiring a work area approximately 20 feet wide and an
excavation depth of approximately 12 feet would be us ed along the entire length of pipe to b e replaced. The two existing 6-inch-diameter acrylonitrile butadiene styrene si phon pipes would be remov
ed and replaced with new 6-inch-diameter high-density polyethylene pipes in the same alignm ent.

Ne
w pipe sections would be placed in the trench, fused together, and connected to manholes on both ends of the pipeline. When completed, the trench would be backfil led with slurry and a concrete cap to prevent erosion d
uring high winter flows. The disturbed stream channel be d and bank w ould be returned to its original contours and seeded with a local native seed mix. Work also includes the removal of one manhole, the replacement of one manhole, and the rehabilitation of a third manhole. The old siphon pipes, the rem
oved manhole material, and the excavated earthen material would be tak en to a landfill.

Construction is
expected to require one construction season (July 1 through October 31) beginning in summer 2025.

ENV

IRONMENTAL SETTING
The proj ect a rea is located in a narrow band o f open space and is centered on Churn Creek, an intermittent str
eam. Natural riparian habitat is situated on either side of the stream. The open space is bounded by residential neighborhoods to the east and west. Each ne ighborhood includes a connection road to the open space
and project area.

FINDINGS AND DETERMINATIO N
The City of Redding conducted an I nitial Study (a ttached) that determined that the proposed project could have
significant environmental effects on b iological resources. Implementation of specific mitigation measures
identified below will avoid or mitigate the potentially significant environmental effects identified, and the preparation of an environmental impact report will not be required. If there are substantial changes that alter the character or impacts of th e proposed project, another environmental impact de
termination will be necessary.

APPROVED
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Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) City of Redding
Public Works Department, Engineering Division Mitigated Negative Declaration

October 2024
Prior to approval of the project, the lead agency may conclude, at a public hearing, that certain mitigation measures identified in the Mitigated Negative Declaration are infeasible or undesirable. In accordance with California Environmental Quality Act (CEQA) Section 15074.1, the lead agency may delete those mitigation measures and substitute other measures that it determines are equivalent or more effective. The lead agency would adopt written findings that the new measure(s) is(are) equivalent or more effective in mitigating or avoiding potential significant effects and that it would not cause any potentially significant effect on the environment.
1) Based on the whole record (including the Initial Study and any supporting documentation) and the mitigation measures incorporated into the project, the City of Redding has determined that there is no substantial evidence that the project will have a significant effect on the environment. 2) The Mitigated Negative Declaration, with its supporting documentation, reflects the independent judgment and analysis of the lead agency, which is the City of Redding.

DOCUMENTATION
The attached Initial Study documents the reasons to support the above determination.

MITIGATION MEASURES
The following mitigation measures will be incorporated into the project to minimize potential effects on biological resources:

MM-1. All in-water work shall occur during July 1 to October 31 to avoid peak times when listed juvenile anadromous fish would be present.

MM-2. Before dewatering, there will be a visual inspection for fish presence. If fish are noted, they will be herded away from the work area, using seines if possible, and prevented from returning to the area using block nets.

MM-3. Environmental awareness training for construction personnel will be conducted by a qualified biologist prior to onset of work to brief them on how to recognize Northwestern pond turtle and the appropriate avoidance measures.

MM-4. Twenty-four hours prior to initiation of ground disturbance or vegetation removal, a qualified biologist shall perform a pre-construction survey for western pond turtle and their nests. If western pond turtles are encountered in the project area during construction and could be harmed by construction activities, work will stop immediately in the area and the individual turtles will be allowed to move away on their own accord. If a Northwestern pond turtle nest is found, a qualified biologist (in consultation with the CDFW and USFWS) will determine the extent of a construction-free buffer zone to be established around the nest.

MM-5. If construction or vegetation removal occurs during the nesting season, February 1 through August 31 for birds and November 1 through July 15 for raptors, a qualified biologist shall conduct a preconstruction survey to locate active nests. The pre-construction survey will be performed no more than 7 days prior to the implementation of construction activities. If a lapse in construction activities occurs for 7 days or longer, another pre-construction survey will be performed. If an active nest is found, a qualified

APPROVED
Packet Pg. 175
Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) City of Redding
Mitigated Negative Declaration Public Works Department, Engineering Division Canter Court Sewer Project Page 3
October 2024
biologist (in consultation with the CDFW) will determine the extent of a buffer zone to be established around the nest.

MM-6. To the extent practicable, removal of large trees with cavities, crevices, or snags shall occur before bat maternity colonies form (i.e., prior to March 1) or after young are volant (i.e., after August 31). If construction (including the removal of large trees) occurs during the bat non-volant season (March 1 through August 31), a qualified professional shall conduct a pre-construction survey of the study area to locate maternity colonies and identify measures to protect colonies from disturbance. The preconstruction survey will be performed no more than 7 days prior to the implementation of construction activities. If a maternity colony is located within or adjacent to the study area, a disturbance free buffer shall be established by a qualified professional, in consultation with CDFW, to ensure the colony is protected from project activities.

MM-7. To the extent practicable, removal of riparian brush will occur outside of the maternal denning period (i.e., July 1–April 30). If vegetation removal is to occur during the maternal denning period (May 1–June 30), a qualified biologist will conduct a preconstruction survey of the study area to locate maternity dens and identify measures to protect the maternity dens from disturbance. The preconstruction survey will be performed no more than seven days prior to the vegetation removal.

MM-8. High visibility fencing, flagging, or markers will be installed along the edges of the work zone near culturally sensitive zone to prevent damage or unauthorized access.

PUBLIC REVIEW DISTRIBUTION
Draft copies or notice of this Mitigated Negative Declaration were distributed to:
ƒ State Clearinghouse
ƒ Shasta County Clerk
ƒ California Department of Fish and Wildlife District 1 ƒ Central Valley Regional Water Quality Control Board
ƒ California Native Plant Society
ƒ Native American Heritage Commission
ƒ State Office of Historic Preservation
ƒ All property owners within 300 feet of the property boundary

PUBLIC REVIEW
(X) Draft document referred for comments September 2, 2024 – October 2, 2024 Date
(X) No comments were received during the public review period. ( ) Comments were received but did not address the draft Mitigated Negative Declaration findings or the accuracy/completeness of the Initial Study. No response is necessary. The letters are attached.

APPROVED
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Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) City of Redding
Public Works Department, Engineering Division Mitigated Negative Declaration

October 2024
( ) Comments addressing the findings of the draft Mitigated Negative Declaration and/or accuracy or completeness of the Initial Study were received during the public review period. The letters and responses follow (see Attachment D, Response to Comments).

Copies of the Mitigated Negative Declaration, the Initial Study, documentation materials, and the Mitigation Monitoring Program may be obtained at the Public Works Department, Engineering Division, City of Redding, 777 Cypress Avenue, Redding, CA 96001. Contact: Tiffany Lightle, Associate Environmental Specialist, (530) 225-4171 or [email protected].

Date of
Draft Report: September 2, 2024 By:

Name/ Title: Tiffany Lightle
Associate Environmental Specialist
Date of
Final Report:

Attachments:

A. Project Location Map
B. Initial Study
C. Mitigation Monitoring and Environmental Commitment Program D. Comments and Response to Comments (if any)
Tiffany Lightle
October 2, 2024

APPROVED
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Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project)

October 2024

MITIGATION MONITORING AND

ENVIRONMENTAL COMMITMENT PROGRAM

CANTER COURT SEWER PROJECT
(STATE CLEARINGHOUSE NO. 20244080916)

MITIGATION MONITORING PROGRAM CONTENTS
This document is the Mitigation Monitoring and Environmental Commitment Program (MMP/ECP) for the Canter Court Sewer Project (project). The MMP/ECP includes a brief disc ussion of the legal basis for, and the purpose of, the pro gram, discussion, and directi on regarding complaints about noncompliance; a key to understanding the monitoring matrix; and the monitoring matrix.

LEGAL BASIS OF AND PURPOSE FOR THE MITIGATION MONITORING PROGRAM California Public Resources Code Section 21081.6 requires public agencies to adopt mitigation monitoring or reporting programs whenever certifying an environmental impact report (EIR) or a mitigated negative declaration (MND). This requirement facilitates implementation of all mitigation measures adopted through the California Environmental Quality Act (CEQA) process.

The MMP contained herein is intended to sa tisfy the requirements of CEQA as they relate to the Initial Study/Mitigated Negative Declaration prepared for the project. It is intended to be used by City of Redding (City) staff, participating agencies, project contractors, and mitigation monitoring personnel during implementation of the project.

Mitigation is defined by CEQA Guidelines Section 15370 as a measure that does any of the following:
▪ Avoids impacts altogether by not taking a certain action or parts of an action. ▪ Minimizes impacts by limiting the degree or magnitude of the action and its implementation. ▪ Rectifies impacts by repairing, rehabilitating, or restoring the impacted environment. ▪ Reduces or eliminates impacts over time by preservation and maintenance operations during the life of the project.
▪ Compensates for impacts by replacing or providing substitute resources or environments.

The intent of the MMP is to ensure the effective implementation and enforcement of adopted mitigation measures and permit conditions. The MMP will provide for monitoring of construction activities as necessary, onsite identification and resolution of environmental problems, and proper reporting to City staff.

In addition to meeting the CEQA MMP requirements, this document incorporates environmental commitments, standard practices, conservation measures, and best management practices (BMPs). The environmental commitments may be part of the project design, standard contract specifications, City requirements, or conservation measures. These commitments are part of the project, but they do not constitute mitigation under CEQA as they have not been incorporated to reduce a potentially significant impact.

APPROVED
Packet Pg. 178
Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) City of Redding
Public Works Department, Engineering Division Mitigation Monitoring Program

October 2024

MITIGATION MONITORING/ENVIRONMENTAL COMMITMENT PROGRAM TABLE The MMP/ECP Table identifies the mitigation measures and commitments proposed for the project.

The tables have the following columns:
▪ Mitigation Measure: Lists the mitigation measures identified within the Initial Study for a specific potentially significant impact, along with the number for each measure as enumerated in the Initial Study.
▪ Environmental Commitment: Lists the commitments identified within the project that are not related to a potentially significant CEQA impact, but further ensure environmental resource protection.
▪ Timing: Identifies at what point in time, review process, or phase the mitigation measure will be completed.
▪ Agency/Department Consultation: References the City department or any other public agency with which coordination is required to satisfy the identified mitigation measure. ▪ Verification: Spaces to be initialed and dated by the individual designated to verify adherence to a specific mitigation measure.

NONCOMPLIANCE COMPLAINTS
Any person or agency may file a complaint asserting noncompliance with the mitigation measures and commitments associated with the project. The complaint shall be directed to the City in written form, providing specific information on the asserted violation. The City shall investigate and determine the validity of the complaint. If noncompliance with a mitigation measure has occurred, the City shall take appropriate action to remedy any violation. The compliant shall receive written confirmation indicating the results of the investigation or the final action corresponding to the particular noncompliance issue.

APPROVED
Packet Pg. 179
Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) City of Redding
Public Works Department, Engineering Division Mitigation Monitoring Program

October 2024

MITIGATION MONITORING AND ENVIRONMENTAL COMMITMENT PROGRAM TABLE

FOR THE CANTER COURT SEWER PROJECT

MITIGATION MONITORING PROGRAM
(STATE CLEARINGHOUSE NO. 202420244080916)

ENVIRONMENTAL COMMITMENTS
The following environmental commitments will be incorporated into the project to further protect environmental and biological resources:

Best Management Practices
Timing/
Implementation
Enforcement/
Monitoring
Verification
(Date and Initials)
Biological Resources (BIO)
BIO-1. A Stormwater Pollution Prevention Plan (SWPPP), as required by the City of Redding Stormwater Quality Management and Discharge Control Ordinance, will be prepared to address BMPs that will be used to prevent erosion and sediment loss within the project site. BMPs such as silt fence, mulching and seeding, and straw wattles will be placed where needed to prevent sediment from leaving the site during and after construction.

Preconstruction/
Construction
City/
Construction
Management
BIO-2. Appropriate sediment control measures (e.g., silt fences, straw wattles) will be in place prior to the onset of construction activities near waters of the United States and in project areas where there is a potential for surface runoff to drain into jurisdictional waters. Sediment control measures will be monitored and maintained until construction activities have ceased.

Preconstruction/
Construction
City/
Construction
Management
BIO-3. High visibility fencing, flagging, or markers will be installed along the edges of the work zone near avoided waters and riparian areas. In addition, equipment entry and exit points; and staging, storage, and stockpile areas must be clearly marked prior to the entry of mechanized equipment or vehicles into the construction area.

Preconstruction/
Construction
City/
Construction
Management
Cultural Resources (CR)
CR-1. If previously unidentified cultural materials are unearthed during construction, it is the City’s policy that work be halted in that area until a qualified archaeologist can assess the significance of the find. Additional archaeological surveys will be needed if the proposed project undertaking limits are extended beyond the present survey area of potential effect limits.

Construction City/
Construction
Management

APPROVED
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Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) City of Redding
Public Works Department, Engineering Division Mitigation Monitoring Program

October 2024
Best Management Practices
Timing/
Implementation
Enforcement/
Monitoring
Verification
(Date and Initials)
CR-2. If human remains are discovered during project activities, all activities near the find will be stopped, and the Shasta County Sheriff-Coroner’s Office will be notified. If the coroner determines that the remains may be those of a Native American, the coroner will contact the Native American Heritage Commission (NAHC). Treatment of the remains will be conducted in accordance with further direction of the County Coroner or NAHC, as appropriate.

Construction City/NAHC/
County Coroner
Hazards and Hazardous Materials (HAZ)
HAZ-1. Hazardous materials, including fuels, oils, cement, and solvents will be stored and contained in an area protected from direct runoff and away from areas where they could enter waters of the United States.

Construction City/
Construction
Management
HAZ-2. Construction equipment will be inspected daily for leaks. Leaking fluids will be contained upon detection, and equipment repairs will be made as soon as practicable, or the leaking equipment will be moved offsite.

Construction City/
Construction
Management
HAZ-3. Secondary containment such as drip pans or absorbent materials will be used to catch spills or leaks when removing or changing fluids. Secondary containment will be used for storage of all hazardous materials.

Construction City/
Construction
Management
HAZ-4. Spill containment and clean-up materials will be kept onsite at all times for use in the event of an accidental spill.

Construction City/
Construction
Management
HAZ-5. Absorbent materials will be used on small spills rather than hosing down or burying the spill. The absorbent material will be promptly removed and disposed of properly.

Construction City/
Construction
Management
HAZ-6. With the exception of vegetation clearing equipment, no vehicles or construction equipment may be operated in areas of tall, dry vegetation.

Construction City/
Construction
Management
HAZ 7. A Fire Prevention and Suppression Plan would be developed for any maintenance and repair activities that require welding or otherwise carry a higher risk of starting a wildfire.

Preconstruction City/
Construction
Management
Hydrology and Water Quality (WQ)
WQ-1. All construction work and stockpiling of materials will be confined to the project disturbance area.

Construction City/
Construction
Management

APPROVED
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Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) City of Redding
Public Works Department, Engineering Division Mitigation Monitoring Program

October 2024
Best Management Practices
Timing/
Implementation
Enforcement/
Monitoring
Verification
(Date and Initials)
WQ-2. Temporary stockpiling of excavated or imported material will be placed in upland areas. Construction City/ Construction
Management
WQ-3. Excess soil will be used onsite or disposed of at a regional landfill or other appropriate facility.

Construction City/
Construction
Management

APPROVED
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Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) City of Redding
Public Works Department, Engineering Division Mitigation Monitoring Program

October 2024

CALIFORNIA ENVIRONMENTAL QUALITY ACT MITIGATION MEASURES Resource-specific mitigation measures that will be used during project implementation include the following:

Mitigation Measure (MM)
Timing/
Implementation
Enforcement/
Monitoring
Verification
(Date and Initials)
Biological Resources (BIO)
MM-1. All in-water work shall occur during July 1 to October 31 to avoid peak times when listed juvenile anadromous fish would be present.

Preconstruction/
Construction
City/
Construction
Management
MM-2. Before dewatering, there will be a visual inspection for fish presence. If fish are noted, they will be herded away from the work area, using seines if possible, and prevented from returning to the area using block nets.

Construction City/
Construction
Management
MM-3. Environmental awareness training for construction personnel will be conducted by a qualified biologist prior to onset of work to brief them on how to recognize Northwestern pond turtle and the appropriate avoidance measures.

Construction City/
Construction
Management
MM-4. Twenty-four hours prior to initiation of ground disturbance or vegetation removal, a qualified biologist shall perform a pre-construction survey for western pond turtle and their nests. If western pond turtles are encountered in the project area during construction and could be harmed by construction activities, work will stop immediately in the area and the individual turtles will be allowed to move away on their own accord. If a Northwestern pond turtle nest is found, a qualified biologist (in consultation with the CDFW and USFWS) will determine the extent of a construction-free buffer zone to be established around the nest.

Construction City/
Construction
Management
MM-5. If construction or vegetation removal occurs during the nesting season, February 1 through August 31 for birds and November 1 through July 15 for raptors, a qualified biologist shall conduct a preconstruction survey to locate active nests. The pre-construction survey will be performed no more than 7 days prior to the implementation of construction activities. If a lapse in construction activities occurs for 7 days or longer, another pre-construction survey will be performed. If an active nest is found, a qualified biologist (in consultation with the CDFW) will determine the extent of a buffer zone to be established around the nest.

Preconstruction/
Construction
City/
Construction
Management

APPROVED
Packet Pg. 183
Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project) City of Redding
Public Works Department, Engineering Division Mitigation Monitoring Program

October 2024
Mitigation Measure (MM)
Timing/
Implementation
Enforcement/
Monitoring
Verification
(Date and Initials)
MM-6. To the extent practicable, removal of large trees with cavities, crevices, or snags shall occur before bat maternity colonies form (i.e., prior to March 1) or after young are volant (i.e., after August 31). If construction (including the removal of large trees) occurs during the bat non-volant season (March 1 through August 31), a qualified professional shall conduct a pre-construction survey of the study area to locate maternity colonies and identify measures to protect colonies from disturbance. The preconstruction survey will be performed no more than 7 days prior to the implementation of construction activities. If a maternity colony is located within or adjacent to the study area, a disturbance free buffer shall be established by a qualified professional, in consultation with CDFW, to ensure the colony is protected from project activities.

Construction City/
Construction
Management
MM-7. To the extent practicable, removal of riparian brush will occur outside of the maternal denning period (i.e., July 1–April 30). If vegetation removal is to occur during the maternal denning period (May 1–June 30), a qualified biologist will conduct a preconstruction survey of the study area to locate maternity dens and identify measures to protect the maternity dens from disturbance. The preconstruction survey will be performed no more than seven days prior to the vegetation removal.

Construction City/
Construction
Management
MM-8. High visibility fencing, flagging, or markers will be installed along the edges of the work zone near culturally sensitive zone to prevent damage or unauthorized access.

Construction City/
Construction
Management

APPROVED
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Attachment: Previous Staff Report 10-15-2024 (4.11(d)--Award BN No. 5609 Canter Court Sewer Project)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize the following actions relative to Bid Schedule No. 5 614 (Job No. 9944), Re dding Regional Airport Passenger Terminal Parking Lot Reconstruction Project:
(1) Award to Tullis, Inc., in the amount of $835,360;
(2) Approve $155,000 to cover the cost of administration and inspection fees; (3) Approve $115,000 for project development costs;
(4) Approve $168,000 to provide construction contingency funding; (5) Authorize the City Manager , or desig nee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $ 25,000; and
(6) Find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 – Existing Facilities.

Fiscal Impact

On June 3, 2025, City Council (Council) approved a loan from the Risk Management Fund to the Airports Division Enterprise Fund for the Redding Regional Airport Passenger Terminal Parking Lot Reconstruction Project (Project) in the amount of $1.5 million . Project cost components are based on estimates, and adjustments may be necessary to reallocate funds and ensure the project remains within the approved budget.

Cost Summary
Item Estimated
Project Development Costs $ 115,000
Construction Contract + Contingency $ 1,003,360
Contract Administration, Inspection, Testing $ 155,000
Additional City Manager Authority $ 25,000
Total Project Costs $ 1,298,360
Project Budget $ 1,500,000
MEETING DATE: August 4, 2025
ITEM NO. 4.11(e)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.11(e)--Award Bid Schedule No. 5614 (Job No. 9944) Redding Regional Airport Passenger Terminal Parking Lot Reconstruction Project Michael Webb, Public Works
Director
Packet Pg. 185
Report to Redding City Council July 30, 2025
Re: 4.11(e)--Award Bid Schedule No. 5614 Redding Regional Airport Passenger Terminal Parking Lot Page 2

Alternative Action

The Council may choose not to award the project or provide alternate direction to staff. If the project does not move forward, the parking lot will continue to deteriorate and ongoing maintenance will be required.

Background/Analysis

This project involves removing the existing concrete islands and trees, grinding and overlaying the passenger parking lot, employee parking lot and rental car parking lot. In addition, new irrigation, trees and landscaping will be installed.

Attached is a tabulation of the bids opened on July 24 , 202 5. The low bid in the amount of $835,360 was received from Tullis, Inc. of Redding. The engineer’s estimate for the project was $949,557. Total project development costs for this project are estimated to be $115,000. Project development costs include engineering, surveying, and environmental.

Environmental Review

Staff has determined that the project is categorically exempt from environmental review under the California Environmental Quality Act Guidelines, per Section 15301 – Existing Facilities .

Class 1 exemptions include the minor alteration of existing public structures and facilities, involving negligible or no expansion of use. The project will be located within the existing airport parking lot and will result in a negligible expansion of use. The action area has been reviewed and it does not have significant values for wildlife habitat or other environmental resources. The project has no potential to have a significant effect on the environment.

Council Priority/City Manager Goals

• This agenda item is a routine operational item.

Attachments
^Location Map
^Notice of Exemption
^Bid Tab
Previous Staff Report - 052025
Previous Staff Report 060325
Packet Pg. 186

AMIGO WAY

MUNI BLVD

TORO WAY

WOODRUM CIR

THUNDERBIRD DR

FAIRLANE DRAIRPORT RD

MUNI BLVDKNIGHTON RDLOCKHEED DRAIRPORT RD

CITY OF REDDINGLOCATION MAPEXHIBIT APUBLIC WORKSDEPARTMENT

LOCATIONPROJECT

REDDING AIRPORT PARKING LOTRESURFACING PROJECT
X:\Projects\Redding Municipal Airport Parking Lot Resurfacing Project\Design\Plans\Drawings\Redding Airport Parking Resurfacing Project.dwg, 10/25/2024 7:47:06 AM Packet Pg. 187
Attachment: ^Location Map (4.11(e)--Award Bid Schedule No. 5614 Redding Regional Airport Passenger Terminal Parking Lot) Packet Pg. 188
Attachment: ^Notice of Exemption (4.11(e)--Award Bid Schedule No. 5614 Redding Regional Airport Passenger Terminal Parking Lot) BID TABULATION FOR:

Redding Regional Airport Passenger Terminal Parking Lot Reconstruction Bid Schedule No.: 5614

ENGINEER'S EST
7/24/2025 UNIT UNIT UNIT

ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 Traffic Control LS 1 $50,000.00 $50,000.00 $30,000.00 $30,000.00 $40,000.00 $40,000.00 2 Prepare Storm Water Pollution LS 1 $2,500.00 $2,500.00 $3,875.00 $3,875.00 $4,500.00 $4,500.00 3 Implement Storm Water Pollution LS 1 $15,000.00 $15,000.00 $6,000.00 $6,000.00 $29,750.00 $29,750.00 4 Excavation (Unclassified) CY 497 $75.00 $37,275.00 $250.00 $124,250.00 $89.00 $44,233.00 5 Asphalt Concrete Ton 2231 $185.00 $412,735.00 $150.00 $334,650.00 $146.00 $325,726.00 6 Aggregate Base CY 366 $85.00 $31,110.00 $125.00 $45,750.00 $129.00 $47,214.00 7 Cold Mill AC (2") SY 18610 $7.00 $130,270.00 $4.50 $83,745.00 $4.50 $83,745.00 8 Sidewalk (4" pcc) SF 237 $15.00 $3,555.00 $16.00 $3,792.00 $25.55 $6,055.35 9 Sidewalk (6" pcc) SF 190 $20.00 $3,800.00 $18.00 $3,420.00 $25.25 $4,797.50 10 Curb and Gutter (6") LF 69 $65.00 $4,485.00 $36.00 $2,484.00 $109.00 $7,521.00 11 Concrete Curb Ramp SF 144 $25.00 $3,600.00 $21.00 $3,024.00 $38.60 $5,558.40 12 Concrete Curb LF 476 $55.00 $26,180.00 $29.00 $13,804.00 $81.50 $38,794.00 13 Remove Concrete SF 485 $12.00 $5,820.00 $15.00 $7,275.00 $3.00 $1,455.00 14 Remove Concrete (2' Deep) EA 12 $400.00 $4,800.00 $200.00 $2,400.00 $290.00 $3,480.00 15 Pavement Marking (Paint) SF 2450 $7.00 $17,150.00 $5.35 $13,107.50 $6.30 $15,435.00 16 Traffic Stripe (4" Paint) LF 10555 $2.00 $21,110.00 $1.70 $17,943.50 $2.73 $28,815.15 17 Install Sign EA 7 $1,000.00 $7,000.00 $470.00 $3,290.00 $450.00 $3,150.00 18 Wheel Stop EA 7 $225.00 $1,575.00 $150.00 $1,050.00 $157.00 $1,099.00 19 Remove Tree EA 29 $725.00 $21,025.00 $1,000.00 $29,000.00 $2,000.00 $58,000.00 20 Remove Keypad Gate Opener LS 1 $2,500.00 $2,500.00 $500.00 $500.00 $900.00 $900.00 21 Landscaping and Irrigation LS 1 $55,000.00 $55,000.00 $48,500.00 $48,500.00 $74,000.00 $74,000.00 22 Adjust Manhole EA 2 $2,000.00 $4,000.00 $2,500.00 $5,000.00 $750.00 $1,500.00 23 Adjust Valve EA 5 $1,500.00 $7,500.00 $2,500.00 $12,500.00 $600.00 $3,000.00 24 Adjust Sanitary Sewer Rodhole EA 1 $1,500.00 $1,500.00 $2,500.00 $2,500.00 $600.00 $600.00 25 Adjust Sanitary Sewer Cleanout EA 2 $1,500.00 $3,000.00 $2,500.00 $5,000.00 $500.00 $1,000.00 26 Adjust Water Meter EA 1 $1,200.00 $1,200.00 $2,500.00 $2,500.00 $250.00 $250.00 27 Conduit (2" PVC) LF 750 $100.00 $75,000.00 $40.00 $30,000.00 $68.00 $51,000.00 TOTAL - CONTRACT ITEMS $948,690.00 $835,360.00 $881,578.40 Tullis, Inc. Sunrise Excavating

Attachment: ^Bid Tab (4.11(e)--Award Bid Schedule No. 5614 Redding Regional Airport Passenger BID TABULATION FOR:

Redding Regional Airport Passenger Terminal Parking Lo
Bid Schedule No.: 5614
7/24/2025

ITEM DESCRIPTION UNIT QTY
1 Traffic Control LS 1
2 Prepare Storm Water Pollution LS 1
3 Implement Storm Water Pollution LS 1
4 Excavation (Unclassified) CY 497
5 Asphalt Concrete Ton 2231
6 Aggregate Base CY 366
7 Cold Mill AC (2") SY 18610
8 Sidewalk (4" pcc) SF 237
9 Sidewalk (6" pcc) SF 190
10 Curb and Gutter (6") LF 69
11 Concrete Curb Ramp SF 144
12 Concrete Curb LF 476
13 Remove Concrete SF 485
14 Remove Concrete (2' Deep) EA 12
15 Pavement Marking (Paint) SF 2450
16 Traffic Stripe (4" Paint) LF 10555
17 Install Sign EA 7
18 Wheel Stop EA 7
19 Remove Tree EA 29
20 Remove Keypad Gate Opener LS 1
21 Landscaping and Irrigation LS 1
22 Adjust Manhole EA 2
23 Adjust Valve EA 5
24 Adjust Sanitary Sewer Rodhole EA 1
25 Adjust Sanitary Sewer Cleanout EA 2
26 Adjust Water Meter EA 1
27 Conduit (2" PVC) LF 750

TOTAL - CONTRACT ITEMS
Average

UNIT UNIT UNIT

PRICE TOTAL PRICE TOTAL PRICE
$79,640.00 $79,640.00 $143,519.00 $143,519.00 $73,289.75 $1,500.00 $1,500.00 $930.00 $930.00 $2,701.25
$2,500.00 $2,500.00 $10,802.00 $10,802.00 $12,263.00
$134.00 $66,598.00 $116.00 $57,652.00 $147.25
$144.00 $321,264.00 $149.00 $332,419.00 $147.25
$243.00 $88,938.00 $133.00 $48,678.00 $157.50
$2.50 $46,525.00 $4.50 $83,745.00 $4.00
$24.00 $5,688.00 $67.00 $15,879.00 $33.14
$30.00 $5,700.00 $79.00 $15,010.00 $38.06
$115.00 $7,935.00 $113.00 $7,797.00 $93.25
$84.00 $12,096.00 $100.00 $14,400.00 $60.90
$49.00 $23,324.00 $111.00 $52,836.00 $67.63
$19.00 $9,215.00 $31.00 $15,035.00 $17.00
$302.00 $3,624.00 $3,910.00 $46,920.00 $1,175.50
$5.35 $13,107.50 $6.00 $14,700.00 $5.75
$1.70 $17,943.50 $2.60 $27,443.00 $2.18
$470.00 $3,290.00 $595.00 $4,165.00 $496.25
$150.00 $1,050.00 $150.00 $1,050.00 $151.75
$1,455.00 $42,195.00 $1,685.00 $48,865.00 $1,535.00
$3,815.00 $3,815.00 $1,387.00 $1,387.00 $1,650.50
$95,000.00 $95,000.00 $72,500.00 $72,500.00 $72,500.00
$1,100.00 $2,200.00 $2,620.00 $5,240.00 $1,742.50
$1,100.00 $5,500.00 $1,118.00 $5,590.00 $1,329.50
$1,100.00 $1,100.00 $2,691.00 $2,691.00 $1,722.75
$1,100.00 $2,200.00 $1,841.00 $3,682.00 $1,485.25
$1,100.00 $1,100.00 $1,342.00 $1,342.00 $1,298.00
$65.00 $48,750.00 $74.00 $55,500.00 $61.75
Average Bid
$911,798.00 $1,089,777.00 $929,628.35
S. T. Rhoades
Construction, Inc. J. F.Shea Construction, Inc

Attachment: ^Bid Tab (4.11(e)--Award Bid Schedule No. 5614 Redding Regional Airport Passenger

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize the City Manager, or designee, to issue a loan betwee n the City of Redding General Fund and the Airports Division Enterprise Fund in order to fund the Redding Regional Airport Passenger Terminal Parking Lot Re construction Project in an amo unt not to exceed $1.5 million – the loan will be amortized annually over a 10-year term at th e averaged pooled cash rate with annual payments of $145,325 and a projected balloon payment of $355,000.

Fiscal Impact

If approved, the City Manager woul d issue a loan to the Airport s Division’s Enterprise Fund from the General Fund in the amount of $1.5 million. As propose d, the Airports Division would make annual payments of $145,325 for a 10-year term at the aver age pooled cash rate at the time of the loan with an anticipated balloon payment of $355,000. A t the end of the term, the balloon payment will be analyzed based on Airports Division revenues an d a refinance of the balloon payment will be presented to City Council (Council) for consideration.

Alternative Action

Council may choose not to authorize the City Manager to issue t he loan and provide staff alternate direction.

Background/Analysis

The Redding Regional Airport (RDD) Passenger Terminal Parking L ot is in overall poor condition due to wear and tear from increased passenger traffic and its lack of eligibility for preservation or rehabilitation funding from traditional airport grant funding sources. The Airports Division has utilized operating funds to initiate the design fo r the parking lot reconstruction and is requesting a City of Redding (City) General Fund loan to ena ble the project to proceed in fall 2025 concurrent with the Runway R ehabilitation project in order to minimize further disruptions MEETING DATE: May 20, 2025
ITEM NO. 4.2(b)
FROM:

***APPROVED BY***

[email protected]
[email protected]
SUBJECT: 4.2(b)--Authorize Loan between C ity of Redding General Fund and Airports Division Enterprise Fund
Steve Bade, Assistant City
Manager
Packet Pg. 191
Attachment: Previous Staff Report - 052025 (4.11(e)--Award Bid Schedule No. 5614 Redding Regional Airport Passenger Terminal Parking Lot) Report to Redding City Council May 14, 2025
Re: 4.2(b)‐‐Authorize Loan between City General Fund and Airports Enterprise Funds Page 2

to RDD customers. Parking lots are typically difficult for smal l and medium airports to maintain because of the overall costs, disruption to services, and lack of eligibility for federal and state grant funding for airports.

The Airports Division contracts with a parking management company to operate the paid parking areas which generate a significant portion of airport revenues. Rental car parking and employee parking are not part of this oversight. As part of the City’s M aster Fee Schedule update, the Airports Division is proposing an increase to the parking lot d aily rates from $10 per day to $12 per day which will be used towards the financing costs associated with the proposed loan.

In addition, the parking lot concession agreement is due for re negotiation and the Airports Division anticipates receiving more favorable concession rates from the operator which would further increase revenues from paid parking. As part of the des ign for the reconstruction, the Airports Division has also inc orporated infrastructure updates to enable the airport or its parking operator to install and utilize license plate r eader technology to enhance the security of the parking lot and ensure the highest effective capture rate of pa rking revenues. There are no current plans to make changes to short-term parking rate, which is currently free for the first four hours in order to facilitate public access to airport concessionaires such as the restaurant operated by a private party.

Environmental Review

This activity, internal loan negotiation and execution, is not a project as defined by the California Environmental Quality Act (CEQA) . If funded, the parking lot re construction project will be reviewed for compliance with CEQA. No further action is required at this time.

Council Priority/City Manager Goals

 Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
Packet Pg. 192
Attachment: Previous Staff Report - 052025 (4.11(e)--Award Bid Schedule No. 5614 Redding Regional Airport Passenger Terminal Parking Lot)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: June 3, 2025 FROM: Steve Bade, Assistant City ITElVI NO. 4. 2( b) Manager
APPROVED BY***
sbade@cityofredding. org
t v , s r 5,f2712C?`?
btippin@cityofredding. org
SUBJECT: 4. 2( b)-- Authorize Loan between City of Redding Risk Management Reserveand Ai orts Division Ente rise Fund
Recommendation
Authorize the City Manager, or designee, to issue a loan between the City of Redding' s Risk Nlanagement Reserve and the Airports Division' s Enterprise Fund in order to fund the Redding Regional Airport Passenger Terminal Parking Lot Reconstruction Project in an amount not- to- exceed $ 1. 5 million — the loan will be amortized annually over a 10-year term at the averaged pooled cash rate with annual payments of $ 132, 670, and a projected balloon payment in the amount of$ 500, 000.

Fiscal Impact
If approved, the City Manager would issue a loan to the Airports Division' s Enterprise Fund from the Risk Management Reserve in the amount of $ 1. 5 million. As proposed, the Airports Division would make annual payments of$ 132, 6' 70 for a 10- year term at the average pooled cash rate at the time of the loan with an anticipated balloon payment of$ 500, 000. At the end of the term, the balloon payment will be analyzed based on Airports Division revenues and a refmance of the balloon payment will be presented to City Council ( Council) for consideration.

Alternative Action
Council may choose not to authorize the City Manager to issue the loan and provide staff alternate direction.

Backg ound/ Analysis
The Redding Regional Airport ( RDD) Passenger Terminal Parking Lot is in overall poor condition due to wear and tear from increased passenger traffic and its lack of eligibility for preservation or rehabilitation funding from traditional airport grant funding sources, The Airports Division has utilized operating funds to initiate the design for the parking lot reconstruction and is reguesting a City of Redding ( City) General Fund loan to enable the project to proceed in fa11 Packet Pg. 193
Attachment: Previous Staff Report 060325 (4.11(e)--Award Bid Schedule No. 5614 Redding Regional Airport Passenger Terminal Parking Lot) Report to Redding City Council May 27, Z025
Re: 4. 2( b)-- Authorize Loan between City Risk Management Reserve and Airports Enterprise Funds Page 2
2025 concurrent with the Runway Rehabilitation project in order to minimize further disruptions to RDD customers. Parking lots are typically difficult for small and medium airports to maintain because of the overall costs, disruption to services, and ] ack of eligibility for federal and state grant funding for airports.

The Airports Division contracts with a parking management company to operate the paid parking areas which generate a significant portion of airport revenues. Rental car parking and employee parking are not part of this oversight. As part of the City' s Master Fee Schedule update, the Airports Division is proposing an increase to the parking lot daily rates from $ 10 per day to $ 12 per day which will be used towards the financing costs associated with the proposed loan.

In addition, the parking lot concession agreement is due for renegotiation and the Airports Division anticipates receiving more favorable concession rates from the operator which would further increase revenues from paid parking. As part of the design for the reconstruction, the Airports Division has also incorporated infrastructure updatesto enable the airport or its parking operator to install and utilize license plate reader technology to enhance the security of the parking lot and ensure the highest effective capture rate of parking revenues. There are no current plans to make changes to short- term parking rate, which is currently free for the rst four hours in order to facilitate public access to airport concessionaires such as the restaurant operated by a private party.

Environmental Review
This aetivity, internal loan negotiation and execution, is not a project as defined by the California Environmental Quality Act ( CEQA). Tf funded, the parking lot reconstruction project will be reviewed for compliance with CEQA. No further action is required at this time.

Council PrioNity/ City ManageN Goals
Budget and Financial Management — " Achieve balanced and stable 10- year Financial Plans for all funds."
Packet Pg. 194
Attachment: Previous Staff Report 060325 (4.11(e)--Award Bid Schedule No. 5614 Redding Regional Airport Passenger Terminal Parking Lot)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize and approve the following actions relative to Bid Schedule No. 5606 (Project No.

STADM23026), Replace Asphalt Concrete Surfacing 2025:
(1) Award to J.F. Shea Construction, Inc. in the amount of $1,630,457; (2) Approve $239,000 to cover the cost of administration and inspection fees; (3) Approve $196,200 for project development costs;
(4) Approve $163,100 to provide construction contingency funding; (5) Authorize the City Manager to approve additional increases in either the constru ction management or construction contingency amounts up to a total of $50,000; (6) Approve the project design plans, specifications, and special provisions; and (7) Find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301(c) – Existing Facilities.

Fiscal Impact

The Replace AC Surfacing 2025 Project (Project) is funded by the City of Redding’s (City) Streets Division and is included in its approved budget for Fiscal Year 2024-25.

Cost Summary
Item Estimated
Project Development Costs $ 196,200
Construction Contract + Contingency $ 1,793,557
Contract Administration, Inspection, Testing $ 239,000
Additional City Manager Authority $ 50,000
Total Project Costs $ 2,278,757
Project Budget $ 2,300,000

MEETING DATE: August 4, 2025
ITEM NO. 4.11(f)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 4.11(f)--Award Bid Negotiation No. 5606 Replace Asphalt Concrete Surfacing 2025 Project
Michael Webb, Public Works
Director
Packet Pg. 195
Report to Redding City Council July 29, 2025
Re: 4.11(f)--Award BN 5606 Replace AC Surfacing 2025 Project Page 2

Project cost components are estimates, and adjustments may be necessary to reallocate funds and ensure the project remains within the approved budget.

Alternative Action

The City Council may choose not to award the proje ct or provide alternate direction to staff. If the project is not awarded , the planned annual maintenance will not occur and the streets will continue to deteriorate and may require complete roadway reconstruction.

Background/Analysis

This project invo lves placing approximately 9,100 tons of asphalt concrete pavement in worn and deteriorated sections of Hartnell Avenue. The project includes other associated work items:

ADA curb ramps, sidewalk replacement, improvements to the Alta Mesa Drive/Hartnell A venue intersection, pavement delineation, pavement markings, pavement markers, and other miscellaneous items.

Attached is a tabulation of bids opened on July 22, 2025. The low bid in the amount of $1,630,457 was received from J.F. Shea Construction, Inc ., of Redding , California . The engineer’s estimate was $1,688,779. Total project development costs for this project are estimated to be $196,200. Project development costs include engineering, environmental, and consultant services (design support).

Environmental Review

Staff has determined that the project is categorically exempt from environmental review under the California Environmental Quality Act Guidelines, per Section 15301 (c). Class 1 exemptions include the operation, repair, maintenance, or minor alteration of existing facilities, structures, or equipment involving negligible or no expansion of use. The project will extend the life of the existing pavement, but will not create additional vehicle capacity or result in expansion of use.

The project has been reviewed for sensitive resources such as threatened or endangered species or their habitats, sensitive vegetation communities, tribal lands, or tribal cultural resources. The project has no potential to have a significant effect on the environment.

Council Priority/City Manager Goals

• This agenda item is a routine operational item.

Attachments
^Location Map
^Notice of Exemption
^Bid Tab
Packet Pg. 196
Packet Pg. 197
Attachment: ^Location Map (4.11(f)--Award BN 5606 Replace AC Surfacing 2025 Project) Packet Pg. 198
Attachment: ^Notice of Exemption (4.11(f)--Award BN 5606 Replace AC Surfacing 2025 Project) BID TABULATION FOR:

Replace AC Surfacing 2025
Bid Schedule No.: 5606
ENGINEER'S EST J F Shea Construction, Inc.
7/22/2025 UNIT UNIT UNIT

ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 Water Pollution Control LS 1 $3,000.00 $3,000.00 $795.00 $795.00 $750.00 $750.00 2 Traffic Control LS 1 $170,000.00 $170,000.00 $168,255.00 $168,255.00 $137,800.84 $137,800.84 3 Project Funding Sign EA 1 $500.00 $500.00 $800.00 $800.00 $800.00 $800.00 4 Construction Area Sign EA 24 $300.00 $7,200.00 $225.00 $5,400.00 $225.00 $5,400.00 5 Asphalt Concrete (1/2" PG 64-10) TON 9100 $92.00 $837,200.00 $96.00 $873,600.00 $110.00 $1,001,000.00 6 Cold Mill Asphalt Concrete SY 39200 $3.00 $117,600.00 $3.95 $154,840.00 $5.50 $215,600.00 7 Pavement Fabric SY 11867 $2.50 $29,667.50 $3.00 $35,601.00 $2.48 $29,430.16 8 Shoulder Backing LF 10350 $3.50 $36,225.00 $2.00 $20,700.00 $4.00 $41,400.00 9 Asphalt Concrete Dike (Type E) LF 404 $30.00 $12,120.00 $24.00 $9,696.00 $23.00 $9,292.00 10 Aggregate Base (Class 2) CY 50 $350.00 $17,500.00 $285.00 $14,250.00 $275.00 $13,750.00 11 Traffic Loop EA 1 $2,500.00 $2,500.00 $7,500.00 $7,500.00 $7,500.00 $7,500.00 12 Sidewalk (4"PCC) SF 713 $22.00 $15,686.00 $28.00 $19,964.00 $16.00 $11,408.00 13 Curb And Gutter LF 116 $72.00 $8,352.00 $108.00 $12,528.00 $36.00 $4,176.00 14 Concrete Curb Ramp SF 667 $45.00 $30,015.00 $34.00 $22,678.00 $20.40 $13,606.80 15 Cross Gutter and Spandrel (Concrete) SF 550 $65.00 $35,750.00 $31.00 $17,050.00 $18.00 $9,900.00 16 Thermoplastic Traffice Stripe (6") LF 65346 $1.75 $114,355.50 $1.25 $81,682.50 $1.20 $78,415.20 17 Thermoplastic Traffic Stripe (8") LF 1616 $2.50 $4,040.00 $2.00 $3,232.00 $2.00 $3,232.00 18 Pavement Marking (Green Bike Lane) SF 3684 $25.00 $92,100.00 $12.00 $44,208.00 $15.00 $55,260.00 19 Pavement Markings (Thermoplastic) SF 2768 $16.00 $44,288.00 $10.00 $27,680.00 $8.00 $22,144.00 20 Pavement Markers EA 1375 $12.00 $16,500.00 $8.50 $11,687.50 $5.00 $6,875.00 21 Curb Marking (Red) LF 107 $10.00 $1,070.00 $5.00 $535.00 $7.00 $749.00 22 Object Markers EA 3 $120.00 $360.00 $85.00 $255.00 $85.00 $255.00 23 Install Sign EA 24 $750.00 $18,000.00 $450.00 $10,800.00 $450.00 $10,800.00 24 Remove Sign EA 3 $200.00 $600.00 $100.00 $300.00 $100.00 $300.00 25 Adjust Valve Box EA 35 $850.00 $29,750.00 $995.00 $34,825.00 $1,250.00 $43,750.00 26 Adjust Manhole EA 24 $1,200.00 $28,800.00 $1,600.00 $38,400.00 $1,250.00 $30,000.00 27 Adjust Monument EA 13 $1,200.00 $15,600.00 $1,015.00 $13,195.00 $1,250.00 $16,250.00 TOTAL - CONTRACT ITEMS $1,688,779.00 $1,630,457.00 $1,769,844.00 Tullis, Inc

Attachment: ^Bid Tab (4.11(f)--Award BN 5606 Replace AC Surfacing 2025 Project) BID TABULATION FOR:

Replace AC Surfacing 2025
Bid Schedule No.: 5606
7/22/2025

ITEM DESCRIPTION UNIT QTY
1 Water Pollution Control LS 1
2 Traffic Control LS 1
3 Project Funding Sign EA 1
4 Construction Area Sign EA 24
5 Asphalt Concrete (1/2" PG 64-10) TON 9100
6 Cold Mill Asphalt Concrete SY 39200
7 Pavement Fabric SY 11867
8 Shoulder Backing LF 10350
9 Asphalt Concrete Dike (Type E) LF 404
10 Aggregate Base (Class 2) CY 50
11 Traffic Loop EA 1
12 Sidewalk (4"PCC) SF 713
13 Curb And Gutter LF 116
14 Concrete Curb Ramp SF 667
15 Cross Gutter and Spandrel (Concrete) SF 550
16 Thermoplastic Traffice Stripe (6") LF 65346
17 Thermoplastic Traffic Stripe (8") LF 1616
18 Pavement Marking (Green Bike Lane) SF 3684
19 Pavement Markings (Thermoplastic) SF 2768
20 Pavement Markers EA 1375
21 Curb Marking (Red) LF 107
22 Object Markers EA 3
23 Install Sign EA 24
24 Remove Sign EA 3
25 Adjust Valve Box EA 35
26 Adjust Manhole EA 24
27 Adjust Monument EA 13

TOTAL - CONTRACT ITEMS
Average

UNIT UNIT

PRICE TOTAL PRICE
$1,000.00 $1,000.00 $848.33
$152,000.00 $152,000.00 $152,685.28
$800.00 $800.00 $800.00
$225.00 $5,400.00 $225.00
$120.00 $1,092,000.00 $108.67
$3.00 $117,600.00 $4.15
$3.00 $35,601.00 $2.83
$4.45 $46,057.50 $3.48
$24.00 $9,696.00 $23.67
$166.00 $8,300.00 $242.00
$7,500.00 $7,500.00 $7,500.00
$27.00 $19,251.00 $23.67
$80.00 $9,280.00 $74.67
$37.50 $25,012.50 $30.63
$38.60 $21,230.00 $29.20
$1.20 $78,415.20 $1.22
$2.00 $3,232.00 $2.00
$15.00 $55,260.00 $14.00
$8.00 $22,144.00 $8.67
$5.00 $6,875.00 $6.17
$7.00 $749.00 $6.33
$85.00 $255.00 $85.00
$450.00 $10,800.00 $450.00
$100.00 $300.00 $100.00
$1,050.00 $36,750.00 $1,098.33
$1,100.00 $26,400.00 $1,316.67
$1,100.00 $14,300.00 $1,121.67
Average Bid
$1,806,208.20 $1,735,503.07
S. T. Rhoades Construction,
Inc

Attachment: ^Bid Tab (4.11(f)--Award BN 5606 Replace AC Surfacing 2025 Project)

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize the Mayor to sign and send a response letter to the 2024-25 Shasta County Grand Jury concerning its report titled “ Quart Hill Subdivision Development – Transparency, Is It Clear? ” regarding the City of Redding’s (City) planned development on City-owned property consisting of approximately 113-acres of undeveloped land in Northwest Redding , identified as 850 Quartz Hill Road.

Fiscal Impact

There is no direct fiscal impact in sending the response to the Shasta County Grand Jury.

Alternative Action

The City Council (Council) could modify the attached response and authorize the Mayor to transmit the revised response to the Shasta County Grand Jury. The Council may also provide additional dir ection, as necessary. It should be noted, however, that the City is required to respond to the findings and recommendations contained within the report no later than 90 days (or August 27, 2025) after the Grand Jury submits the report.

Background/Analysis

On May 29, 2025, t he Shasta County Grand Jury issued a report titled Quartz Hill Subdivision Development – Transparency, Is It Clear ?. The report contains four findings, and three recommendations. The City Council is required to respond to the findings a nd recommendations as required in Penal Code 933.05. S taff has developed the attached response to the Shasta County Grand Jury for the City Council’s review and consideration.

MEETING DATE: August 4, 2025
ITEM NO. 9.1(a)
FROM:

***APPROVED BY***
[email protected]

[email protected]
SUBJECT: 9.1(a)--Consider City of Redding's response to the Shasta County Grand Jury Report regarding the Quartz Hill Subdivision Development Steve Bade, Assistant City
Manager
Packet Pg. 201
Report to Redding City Council July 31, 2025
Re: 9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Subdivision Development Page 2

Environmental Review

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

Council Priority/City Manager Goals

• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”

Attachments
^GJ Report - Quartz Hill Subdivision Development
^Response to GJ Report - Quartz Hill
Packet Pg. 202
Packet Pg. 203
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 204
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 205
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 206
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 207
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 208
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 209
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 210
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 211
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 212
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 213
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 214
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 215
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 216
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 217
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Packet Pg. 218
Attachment: ^GJ Report - Quartz Hill Subdivision Development (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill

Jack Munns, Mayor
[email protected]
530.225.4447

August 4, 2025

Honorable Tamara Wood, Presiding Judge
Shasta County Superior Court
1515 Court Street, Room 610
Redding, CA 96001

Re: Response of City of Redding City Council to Fiscal Year 2024-2025 Grand Jury Report:

Quartz Hill Subdivision Development – Transparency, Is It Clear?

Dear Judge Wood,

The City Council of the City of Redding (City) appreciates the time and dedication the members of the 2024-2025 Grand Jury contributed to their charge. As background, in August 2022, the City was successful in receiving a $22.6 million grant to aid in the community’s recovery efforts following the devastating Carr Fire. This grant was part of a congressionally authorized disaster recovery award delivered to the state and distributed locally, allowing maximum flexibility in its use, including infrastructur e projects. Several recommendations of the Grand Jury were already occurring, and some are not feasible, due to Redding Municipal Code. The responses below simply reflect these differences and are not meant to diminish the soundness of the Grand Jury’s recommendations.

Below are the City’s responses to the Grand Jury’s Findings and Recommendations.

Findings

F1. Nearby area residents expressed concerns about The Peaks. Although there is no requirement for public notice in the initial pre-development stage, the City responded by providing opportunities for input and engagement.

Response: The City agrees with the finding.

F2. There is currently a demand and need for Workforce Housing. Using available CDBG- DR funding, The Peaks development is the City of Redding’s approach to mitigating the Workforce Housing shortage in the City while maintaining control of development in line with City priorities.

Response: The City agrees with the finding.

Packet Pg. 219
Attachment: ^Response to GJ Report - Quartz Hill (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Subdivision Response of the City of Redding City Council to Fiscal Year 2024-2025 Grand Jury Report: August 4, 2025 Quartz Hill Subdivision Development – Transparency, Is It Clear? Page 2 of 3 F3. Since profit-oriented objectives of private developers may deviate from community- oriented goals envisioned by the City for The Peaks development, the City has chosen to retain control of the development.

Response: The City partially disagrees with this finding. The City cannot speak to the objectives of private developers; however, the City had determined a need for this type of project and seized the opportunity to apply for CDBG-DR Grant funds.

F4. Due to an ongoing perceived lack of transparency by the City, residents near the Property remain concerned about fire safety and evacuation routes.

Response: The City partially disagrees with the finding. The City is aware of several different perceptions from City of Redding residents, both near and far from the property, and has provided numerous opportunities for the public to receive information and share their concerns, and will continue to do so.

Recommendations:

R1. On or before July 1, 2025, the Redding City Council direct the City Manager to schedule an additional public presentation, explaining the City’s vision for The Peak’s development. This should be held by August 31, 2025, and include the approval process, future public engagement opportunities, alternatives to The Peaks, and potential consequences of those alternatives. Notification of the presentation should be provided, via direct mailing, to residents within 800 feet of The Peaks and to those who have requested project information. The City should issue a Press Release and notify the community of the planned presentation via all the City’s social media platforms.

Response: This recommendation will not be implemented because it is not warranted. Additional public meetings and outreach have been provided in the City’s grant administration due diligence efforts. Public meetings have been held in a variety of locations and on various dates and times, in an effort to provide several options for the public to attend. Through the City’s social media channels and Press Releases, meetings have been advertised and shared with the public, providing an opportunity to submit comments, either online, via email, or by telephone, including the ability to request to be added to mailings regarding the subject property. For further outreach, the City has a dedicated webpage for The Peaks located on the City of Redding website, as well as podcasts, mailings via U.S. Postal Service, and Community Outreach meetings (November 13, 2024, January 22, 2025, with a City Council Meeting conducted on site (walking tour) on March 3, 2025).

R2. On or before July 1, 2025, the Redding City Council direct the City Manager to integrate additional feasible alternatives into The Peaks development plan prior to final submission, including ingress and egress options, fire mitigation measures, and a defensible space requirement, which may enhance public safety and exceed planning requirements.

Response: This recommendation will not be implemented because it is not reasonable. Per Redding Municipal Code (RMC) 18.10.030 – Planning Commission, RMC 18-10-040 - Board of Administrative Review, and RMC 18.10.050 – Development Services Director are charged with reviewing plans, applications, and providing recommendations for various plans and projects to the City Council. It would be inappropriate for the City Manager to act in the manner recommended.

Packet Pg. 220
Attachment: ^Response to GJ Report - Quartz Hill (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Subdivision Response of the City of Redding City Council to Fiscal Year 2024-2025 Grand Jury Report: August 4, 2025 Quartz Hill Subdivision Development – Transparency, Is It Clear? Page 3 of 3

As background, many City departments are engaged in reviewing plans submitted to the City: Community Services (Parks and Recreation), Planning Division, including reviewing for General Plan conformity, Fire Department, Public Works, Electric Utility, and other departments, as necessary. Public feedback is also a consideration.

R3. On or before September 1, 2025, the Redding City Council direct the City Manager to ensure the development of programs, such as a Citizen Academy or podcast, by December 31, 2025, to encourage and educate citizens on how they can have their voices heard in the City, regarding land use and property development, along with how constructive participation can help shape the community.

Response: This recommendation has not yet been implemented but will take place by December 31, 2025.

This concludes the response from the City of Redding City Council to the 2024-2025 Grand Jury Report entitled Quartz Hill Subdivision Development – Transparency, Is It Clear?

Sincerely,

Jack Munns
Mayor
City of Redding

cc: Susan Wolf, Foreperson, Shasta County Grand Jury
Redding City Council
Redding City Manager
Redding City Attorney

Packet Pg. 221
Attachment: ^Response to GJ Report - Quartz Hill (9.1(a)--Response to 2024-25 Shasta Co. Grand Jury Report - Quartz Hill Subdivision

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize the Mayor to sign and send a response letter to the 2024 -25 Shasta County Grand Jury concerning its report titled “ Redding’s Downtown Paid Parking Program” regarding the operations of the City of Redding’s paid parking program.

Fiscal Impact

The mitigations listed in response to the Grand Jury’s findings and recommendations including but not limited to additional sign installation, existing sign adjustments and additional guidance and information regarding the City of Redding’s (City) paid parking program, will be funded by the City’s Parking Division and is included in its approved budget for Fiscal Year 2024 -25.

Should City Council (Council) choose additional mitigations above those listed in the response, additional funding would need to be included into the divisions approved budget for Fiscal Year 2025-26.

Alternative Action

The Council may choose to modify or not authorize a response to the Shasta County Grand Jury, and provide additional direction as necessary. However, i t should be noted that the City is required to respond to the findings and recommendations contained within the report no later than 90 days (or August 30, 2025) after the Grand Jury submits the report.

Background/Analysis

The Shasta County Gr and Jury issued the attached report titled “ Redding’s Downtown Paid Parking Program” on June 30, 2025. The report contains si x findings, and six recommendations.

The Council is required to respond to the findings and recommendations. Staff has developed th e attached response to the Shasta County Grand Jury for the Council’s review and consideration.

The response highlights the City’s willingness of transparency in posting reports with the MEETING DATE: August 4, 2025
ITEM NO. 9.1(b)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 9.1(b)--Consider City of Redding's response to the Shasta County Grand Jury Report regarding Parking
Michael Webb, Public Works
Director
Packet Pg. 222
Report to Redding City Council July 31, 2025
Re: 9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding Parking Page 2

parking systems measurables more frequently in areas easily accessibl e to the public as well as increasing the visibility of signage within the parking program area.

Environmental Review

This action , responding to the Grand Jury, is not a project as defined by the California Environmental Quality Act (CEQA), and no action is required at this time . The sign installation project will be subject to a separate review under CEQA and addressed as the project is developed.

Council Priority/City Manager Goals

• Communication and Transparency – “Improve the quality of communicatio n with the public and City employees to enhance knowledge and increase transparency to improve public trust.”

Attachments
^Parking Response - Mayor's Letter
^Shasta County Grand Jury Report
Packet Pg. 223
Jack Munns, Mayor
[email protected]
530.225.4447 August 5, 2025

The Honorable Tamara Wood
Presiding Judge
Shasta County Superior Court
1515 Court Street, Room 610
Redding, CA 96001
Dear Judge Wood:

The Shasta County Grand Jury issued a report regarding the City of Redding’s Downtown Parking Program.

The Grand Jury has requested that the City Council respond to six findings and six related recommendations. The City appreciates the time and effort the Grand Jury invested in its review and submits the following responses:

Findings
F1. The City's Transportation Department staff monitors cost and revenue performance, as well as payment methods used, to measure the success or failure of the program's financial objectives. The Grand Jury found no evidence that monitored results are regularly communicated to the City Council and the general public, so it is unclear if objectives are being met.

Response: The City disagrees wholly with this finding. Staff regularly track and evaluate financial metrics—including revenue, costs, and payment methods—using internal reports and data collected through vendor platforms. The parking program has been established for approximately 2 years and 4 months and during that time, Council and the public have received two specific updates on September 5, 2023 and April 16, 2024 regarding the monitored results of the program. An additional three parking items were brought forth to City Council on May 2, 2023, May 7, 2024 and October 15, 2024 and at those meetings, the City Council and general public were provided the opportunity to discuss results of the program. In all of these occurrences, changes to the parking program were communicated to, and implemented by, City Council to meet businesses or government entity nee ds as the downtown area experienced growth or changes. Based on the meetings listed above, City Council feels that both City Council and the general public have received adequate communication regarding the financial performance of the parking program. As the downtown area continues to develop, additional updates and modifications to the parking program are anticipated and will be communicated to, and ultimately approved by, City Council.

Packet Pg. 224
Attachment: ^Parking Response - Mayor's Letter (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report

F2. Two key goals of the parking program (maintaining an available parking capacity of 15% or greater and improving parking turnover) are not being regularly monitored or reported. Failure to monitor these two metrics leaves open the question of whether the City's objective of achieving the "most efficient use of all public and private parking spaces in downtown Redding" is being met.

Response:

The City disagrees wholly with this finding. Initially and during the early stages, the City had commissioned third-party data collection and analys is software to measure available capacity and turnover metrics to confirm that the parking program was meeting the available capacity and turnover goals. This information was also utilized in presentations to City Council and the general public. After op erating the parking program for 18 months, collecting data that indicated consistent achievement of the parking capacity and turnover goals, as well as receiving general positive feedback from downtown businesses, the City determined that continuing to commission available parking and turnover data was an unnecessary expense to the parking program. However, the City anticipates a future need for additional parking capacity and turnover data and analysis as the downtown area continues to develop and the par king program continues to mature ultimately providing the information needed to make the appropriate adjustments to the parking program. Similar to the response to Finding 1 described above, City Council feels that both City Council and the general public have received adequate communication regarding the performance metrics of the parking program.

F3. Entrances to off-street parking are not always clearly marked, contributing to (a) difficulty locating off-street parking, (b) the perception of a lack of downtown parking, and (c) drivers parking at distances greater than necessary from their destination. These issues contribute to the perception of excessive walking distances when closer parking might have been available.

Response: The City disagrees parti ally with this finding. All off-street parking facilities utilized by the program include signage at or near entrance points, but visibility and clarity can vary due to location - specific constraints such as landscaping, building placement, or existing infrastructure. The City has completed a signage assessment and is in the process of orientating existing signage and installing a minimal amount of improved entry signage to increase visibility and ensure more consistent messaging across facilities as well as incorporating additional wayfinding signage directing users to off -streets parking facilities. This initiative is focused particularly on high-traffic areas and parking lots most frequently used by visitors but will encompass all facilities in the future.

F4. Parking signage is not always visible. Signs themselves are small or inconspicuous.

Additionally, in some cases, a sign is only visible from one direction when there are vehicular approaches from multiple directions. Without proper signage, locating convenient parking contributes to the perception of excessive walking distances.

Response: The City disagrees partially with this finding. All parking signage has been sized and located in accordance with the guidance outlined in the California Manual on Uniform Traffic Control Devices (CAMUTCD). As discussed in the response to Findings 3 above, t he City is in process of signage improvements, with a focus on increased visibility and directional signage to parking locations. However, it should be noted that the City strives to provide for downtown signage and infrastructure that is subtle and discourages unnecessary clutter along business store fronts to maintain visual aesthetics within downtown.

This delicate balance is continuously being evaluated by Staff with input from downtown business groups.

F5. Pay station kiosks are often not clearly visible because they tend to blend into the surrounding background. As a result, visitors to downtown find it difficult to locate their closest pay station. This is especially problematic for new or occasional visitors to the downtown area.

Response: The City disagrees partially with this finding. While the placement of kiosks adheres to accepted industry standards and ADA compliance, visual integration with surrounding structures, foliage, or parked vehicles can reduce kiosk visibility, particularly for new or occasional users. All of the 42 deployed kiosks Packet Pg. 225
Attachment: ^Parking Response - Mayor's Letter (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report

have a 42”x30” sized “Pay Here” sign approximately 7 feet of the ground within the direct vicinity of the pay station and visitors in most cases will pass-by a pay station while walking from parked location to their final destination due the strategic placement of kiosks. In addition, the City offers the ability to pay by app or by text and information regarding use of those options are clearly identified at a minimum of two separate locations on every individual block face. In an effort t o improve visibility, the City is implementing upgrades such as color -contrasting decals, and directional signage to improve kiosk recognition without disrupting the visual aesthetics of the downtown environment.

F6. In many cases, a driver, once in a lot, cannot see the kiosk associated with that lot because it is hidden behind other parked vehicles. This inability to locate the appropriate pay station is a source of frustration and may even lead to the driver not knowing they are in a paid parking lot.

Response: The City agrees with this finding. In some lots, kiosk sightlines may be impeded depending on parked vehicle placement or the surrounding environment. The kiosks all have “Pay Here” signage but depending on the angle of the individual parking stall the signage may be difficult to view. The City is reviewing these locations and exploring solutions such as elevated or direct ional signage, pavement markings, and refined landscaping to make kiosks and their associated signage more visible upon entry and from various points within the lot.

Recommendations
R1. Direct the City Manager to implement a process for quarterly monitoring and reporting of occupancy and turnover by December 31, 2025.

Response: This recommendation will not be implemented because it is not warranted. City Council feels that staff are performing adequate monitoring of the parking program as well a s providing adequate reporting to both City Council and the general public as described in the responses to Findings 1 and 2 stated previously. However, as development in the downtown area continues to occur, City Council anticipates the frequency or regul arity of reporting to adjust accordingly with the pace of development within the downtown area.

R2. Ensure that all off -street parking lot entrances are clearly identified as paid parking facilities by December 31, 2025.

Response: This recommendation has not yet been implemented, but will be implemented in the future, prior to December 31, 2025. While the City disagrees partially with the finding justifying this recommendation, the City recognizes that communication can always be improve d and agrees to implement minor improvements. An inventory of all off-street facilities has been completed, and upgrades to entrance signage will begin in the near future . A minimal number of n ew signs will be installed where deficiencies were identified, including clearer indicators that the parking lot is part of the City’s paid parking system. These upgrades will be completed utilizing efforts and resources that are already underway and scheduled for completion.

R3. Install "You Are Here" signboards at lots and key on-street locations to show nearest pay stations and relevant information by December 31, 2025. These signboards should indicate the location of the nearest pay station and any other relevant parking information. This would significantly improve visitors' ability to locate the appropriate pay station for each parking zone and clarify any parking restrictions for that zone.

Response: This recommendation will not be implemented because it is not warranted. The City supports improved wayfinding that integrates enhanced signage into its downtown wayfinding plan. However, full implementation of "You Are Here" boards at all key on-street locations will be prioritized based on cost, visibility needs, and site feasibility. In order to provide a n affordable and cost-effective parking program, Packet Pg. 226
Attachment: ^Parking Response - Mayor's Letter (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report

installation of additional signboards is not currently contemplated in the programs approved budget.

However, the City has identified four existing wayfinding location maps that will be updated with “You are Here” information.

R4. Modify size, color, and placement of signage to enhance visibility by July 1, 2026.

Response: This recommendation will not be implemented, because it is not warranted. Although the City has plans to increase the sizes and adjust the locations of signage, the current colors will remain unchanged in order to remain in conformance with CAMUTCD color configuration guidelines and materials already procured. Implementation will occur in phases as existing signs are replaced or as part of broader parking system upgrades as resource constraints allow which may occur after the deadline as set forth . The City is also collaborating with private parking partners to align signage standards wherever possible for a more unified experience.

R5. Ensure directional and/or informational signage is installed by December 31, 2025, that is clearly visible from the direction of each approach when there are multiple vehicular approaches to a parking area.

Response: This recommendation has not yet been implemented, but will be implemented in the future, prior to December 31, 2025.

R6. Ensure pay stations are made more visible by December 31, 2025. Suggested visibility -enhancing improvements include:
• Adding reflective striping to the kiosk to make it more visible. • Changing the color of the kiosk to a more visible color. • Adding lighting to each kiosk.
• Installing raised signage at or above each kiosk similar to that found at some of the on -street pay stations.

Response: This recommendation has been implemented. Reflective decals have been added to select kiosks, and raised signs have been adjusted in areas with poor visibility.

The City of Redding remains committed to delivering a parking system that supports local businesses, accommodates fut ure growth, and provides a positive experience for both residents and visitors. We appreciate the Grand Jury’s thoughtful evaluation and believe the recommendations, will support ongoing program refinement.

Sincerely,

Jack Munns
City of Redding
Mayor

cc. Honorable Council Members
Barry Tippin, City Manager
Christian Curtis, City Attorney
Michael Webb, Director of Public Works
Brian Barner, Chief of Police
Susan Wolf, Shasta County Grand Jury

Packet Pg. 227
Attachment: ^Parking Response - Mayor's Letter (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report

Sample Template for Reports

CITY OF REDDING

DOWNTOWN PAID PARKING PROGRAM

SHASTA COUNTY GRAND JURY
2024 - 2025
Packet Pg. 228
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 1 REDDING’S DOWNTOWN PAID PARKING PROGRAM
2024 – 2025 Shasta County Grand Jury
05/22/2025

SUMMARY
The Shasta County Grand Jury investigated the City of Redding's (City) downtown paid parking program. In January 2023, the “Downtown Redding Parking Strategy” was implemented as an integral part of the City’s “Downtown Redding Specific Plan Update” dated June 2022. The grand jury’s investigation was prompted by questions and concerns raised by Redding residents, downtown business owners, and members of the Redding City Council regarding paid parking in the downtown area1.

The grand jury’s investigation sought to identify and evaluate the City’s responses to these concerns. Specifically, the investigation examined the City’s goals and objectives for the parking program and whether these goals are being met.

GLOSSARY
To aid in understanding certain terms in this report, the following definitions are provided:
“Downtown Redding Parking Strategy”—The August 2019 report, developed by parking consultant firms Watry Design, Inc. and SpaceWorks, forms the basis for the City of Redding’s strategic long-term and short-term parking plan, which was implemented in January 2023. “Strategy Area” – The downtown parking area, bounded by Shasta Street to the north, South Street to the south, West Street to the west, and East Street to the east (See Exhibit IV). “Core Area” – The smaller downtown parking area that falls within the north, south, and east boundaries of the “Strategy” area but is bounded on the west by California St. (See Exhibit IV). “Cost Neutral and Cost Neutrality” – These terms are used interchangeably to refer to the City of Redding’s paid parking program, the objective of which is self-supporting, with all the costs of operating the program covered by revenues generated by the program itself. “Flowbird” – An application allowing parking software to be downloaded to a smartphone, enabling users to schedule and pay for downtown parking remotely using their debit or credit card.
“Turnover” – frequency with which vehicles enter and exit a given parking area.

1 David Herenda, “Redding’s Recent Downtown Parking Program Updates Sees Mixed Reviews Between City Staff”, KRCR - Redding, May 23, 2024.

Packet Pg. 229
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 2 BACKGROUND
The City has had paid parking, initially using coin-operated meters, in the downtown area since 1947. Over time, coin-operated meters had become problematic for several reasons.

The original meters:
• accepted only nickels or dimes and could not be easily adapted to other coinage. • were susceptible to vandalism and theft.
• contained replacement parts that had become increasingly expensive or were no longer available.

As obsolete meters were removed, the City was left with a hodge-podge of metered and unmetered parking spaces, often adjacent to one another, throughout the City. Working meters were largely ignored by people who were confused by the presence of both metered and unmetered spaces in close proximity to one another, believing that the meters present were obsolete and inoperable.

In 2016, the City contracted with a parking consultant firm to conduct a study of downtown parking supply and demand in conjunction with the planning consultants who developed the “Downtown Redding Specific Plan Update”. As a result of these studies, the City hosted a series of public meetings through the Fall of 2021 and contracted with a second parking consulting firm to implement the proposed parking strategy. The stated overall goal of the new parking strategy is:
“…to make the most efficient use of all public and private parking spaces in Downtown Redding, while planning for potential future demands that may necessitate the turnover of on-street parking spaces and the use of additional off-street parking” 2
Incorporating the consultants’ recommendations and public input, the City prioritized specific objectives in support of the broad goal. Key among specific program objectives are to:
• Replace aging and costly parking infrastructure (e.g., parking structures, leased parking areas, and coin-operated parking meters).
• Develop a parking capacity adequate to sustain space occupancy rates, not to exceed 85% of available spaces.
• Improve parking “Turnover” of on-street parking in the downtown Core area. • Address the need for longer-term parking for downtown employees. • Implement stated objectives with a self-supporting parking strategy that results in cost- neutrality to the City’s General Fund.

2 Watry Design, Inc./PlaceWorks, “Downtown Redding Parking Strategy”, City of Redding, August, 2019.

Packet Pg. 230
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 3 The City’s Public Works Department continuously monitors parking program costs and revenues. Exhibit I shows that progress toward the program’s cost-neutrality objective is yielding positive results. Interviews with City staff indicate that, as certain equipment lease and maintenance agreements expire, cost/revenue breakeven is expected in mid-2027, if not before.

The availability of new off-street parking facilities strategically located electronic payment methods, and the issuance of parking permits for downtown employees has been largely achieved. The status of these objectives is monitored as part of monthly cost and revenue analysis conducted within the City’s Transportation Department. Exhibit II on the next page shows the percentages of revenue derived from each payment method for 2023 and 2024.

$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$637,993 $449,925 $274,119 $316,273
2024 (12 Mos)

REVENUE/EXPENSE

EXPENSE
(Including
startup
costs)

EXPENSE

REVENUE

REVENUE
Exhibit I
[Source: City of Redding; Public Works Department, “Parking Operations Reports”, 2023 and 2024]

2023 (10 Mos)
Packet Pg. 231
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 4 PARKING OPERATIONS 2023 – 2024
2023 (March-December) 2024 (January-December)
Payment Method Frequency
of Use
Amount
Collected Payment Method Frequency
of Use
Amount
Collected
By Flowbird 19% $31,276 By Flowbird 22% $44,091
By Meter 62% $94,511 By Meter 54% $10,4160
By Text 18% $31,716 By Text 23% $45,921
By Permit 2% $37,725 By Permit 2% $56,325
Citations* -- $78,891 Citations* -- $65,776
Total Revenue $274,119 Total Revenue $316,273
* Citations influenced by other factors are excluded from the percentages.

The grand jury’s investigation found little evidence indicating that objectives related to improved occupancy rates and increased parking turnover are monitored and reported regularly. (Occupancy, for example, has not been measured, as far as the grand jury could tell, since 2018). Because these indicators are signs of a more effective parking program, regular monitoring and public reporting on these metrics would go a long way toward alleviating some of the public’s concerns about the paid parking program.

Despite the City’s public outreach efforts and perhaps due to the observed lack of published information regarding the achievement of key objectives, citizens, downtown business owners, and City Council members have raised questions about the efficacy of Redding’s paid parking program. Concerns included:
1) The necessity for, and cost of, paid parking by downtown visitors and employees 2) Cost of the program vs. revenue from the program (cost neutrality) 3) Inadequate number of parking spaces, including low Turnover of parking near/in front of businesses, and lack of longer-term parking for downtown employees 4) Difficulty locating pay stations
5) Distance between pay stations and parking
6) Distance from parking to businesses

[Source: City of Redding; Public Works Department, “Parking Operations Reports”, 2023 and 2024]

Exhibit II
Packet Pg. 232
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 5 METHODOLOGY
The grand jury investigation of the Redding downtown parking program was conducted over several months and included:
• Review of City online and printed publications
• Review of City staff recommendations to City Council
• Review of social media discussions
• Review of local media reporting
• Review of parking consultant reports
• Interviews with employees of the City of Redding and the Redding Chamber of Commerce

DISCUSSION

NECESSITY FOR, AND COST OF, PAID PARKING BY INDIVIDUALS Patrons' most frequently asked question is, “Why do we have to pay to park downtown, especially when the City is trying to encourage people to frequent downtown businesses?” The answer is simply that parking is not a free commodity. In addition to the opportunity cost of allocating valuable commercial real estate to downtown parking spaces (as opposed to retail, residential, and other commercial uses), there are recurring costs associated with the administration, enforcement, and maintenance of parking facilities.

It is essential to note that the stated objective of the City’s Downtown Redding Parking Strategy, published in August 2019, is not to generate revenue beyond covering the costs of a self-sustaining downtown
parking program. Exhibit III shows that
Redding’s rates align with those of other
Northern California cities' downtown paid
parking programs.

Revenue generated from paid parking,
including a portion of parking citations, is
allocated toward system and facility
maintenance, program administration, and
parking enforcement. As such, the question facing the City and the public is, who should pay these costs?

COMPARATIVE HOURLY PARKING RATES
Redding ..............$1.00/hr. M-F, 8:00 am-6:00 pm
Chico ...................$1.00/hr. M-F, 9:00 am-6:00 pm Sacramento .........$3.00-15.00/hr.* M-Su, Times vary*
San Francisco .....$0.50-10.25/hr.* M-Sa, Times vary*

*Varies by time of day and location
Exhibit III
Packet Pg. 233
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 6 (1) The patrons (through parking fees) who are using the downtown parking (a pay-for-use approach) or;
(2) All taxpayers in the City of Redding (through property and sales taxes), whether or not they use downtown parking facilities.

Based on information gathered from public meetings held throughout the fall of 2021, input from downtown business owners, research on what other cities of comparable size were doing, and recommendations from parking consultants, City officials chose the pay-for-use approach to fund downtown parking.

COST OF THE PROGRAM VS. REVENUE FROM THE PROGRAM
From a cost/revenue perspective, the goal is for the downtown parking program to be cost- neutral to the City’s General Fund
3 . The revenue generated by the downtown parking program will be used solely to cover the cost of maintaining and operating the parking program. It is not intended to be an independent revenue source for other City operations. As a key element of the City's downtown parking program, the City’s Public Works Department continuously monitors this metric.

Exhibit I, shown earlier, indicates the cost/revenue behavior from the implementation of the current program from March 2023 through December 2024 and illustrates the relatively high upfront cost of implementation, accompanied by relatively low revenue generated at the outset.

The City predicts that a convergence of expenses and revenue (the breakeven point) will occur in mid-2027, if not before, as operating equipment lease costs expire and downtown traffic increases.

INADEQUATE PARKING SPACES AVAILABLE
This section addresses three concerns: inadequate parking spaces, parking Turnover near or in front of businesses, and a lack of longer-term parking for downtown employees. These concerns directly contribute to the perceived lack of available downtown parking.

The “Downtown Redding Parking Strategy” categorizes downtown parking into the two areas outlined in Exhibit IV on the next page: a larger “Strategy” area and a downtown “Core” area located within the “Strategy” area.

3 Public Works Department, “Report to the City Council”, City of Redding, October 18, 2022.

Packet Pg. 234
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 7 In May 2017, and updated in 2018, City staff physically counted occupied stalls for the Core and Strategy areas.
4 The count was conducted on weekdays between 11:00 a.m. and 2:00 p.m. The findings of the count were:
• The Core area was parked at 58% of capacity (1,476 occupied spaces of 2,543 spaces total)
• The overall Strategy area was parked at 55% of capacity (2,504 occupied spaces of 4,598 spaces total)

4 Watry Design, Inc., “Downtown Redding Parking Demand Analysis”, City of Redding, September 14, 2018.
[Source: Watry Design, Inc., “Downtown Redding Parking Strategy”, City of Redding, August 2019] Parking Strategy Boundary
Downtown Core District Boundary

DOWNTOWN STRATEGY AND

CORE PARKING AREAS
Exhibit IV
Packet Pg. 235
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 8 These numbers indicate ample parking availability downtown to maintain occupancy at no more than 85%. It is worth noting, however, that (a) the City staff’s counting took place at a time that includes the usual lunch hour, and (b) the Core area, at 58% occupancy, is included within the Strategy area. (Note: the impact of lunch-hour parking is not addressed in this study.) The fact that the overall Strategy area, including the Core area, has an occupancy rate lower than the Core by itself indicates a significant underutilization of spaces outside the Core. Exhibit V below shows that even with a projected overall decrease in total parking spaces, by eliminating parking areas leased by the City and increasing off-street parking facilities within the Core, parking utilization within the Core will increase dramatically by the final phase of development while still maintaining the goal of a minimum of 15% available spaces.

At the time of the parking consultant’s study in 2019, one of the factors identified as contributing to the perceived lack of downtown parking was the fact that a large number of employees work for extended periods in the downtown Core and occupy on-street parking spaces close to the businesses at which they are employed, including at the curb in front of their businesses. This reduced the turnover of parking spaces and the availability of prime locations, which would otherwise be available for customer parking.

The introduction of time-limited and paid on-street parking significantly impacted these downtown employees. The increase in convenient off-street parking helped alleviate some of the impacts, but the economic burden on employees due to paid parking remained an issue. In response, the City now offers a limited number of monthly parking permits for downtown employees at $25 per month. The maximum daily cost of parking downtown without a permit is $10.00 ($8.00 maximum in parking garages) per day. With a $25 per month permit, the daily cost [$25 ÷ 20 workdays/month] is $1.25 per day. The combination of these actions and active enforcement of parking restrictions will impact both the availability of spaces and convenient, longer-term parking for downtown employees. It is also noted that the City, responding to public [Source: City of Redding; Watry Design/PlaceWorks, August 2019] Exhibit V
Core Phase III Parking Supply Total - 2461
Available
Spaces
Current
Utilization
Underutilized
Space
Core Current Parking Supply Total - 2596
Available
Spaces
Projected
Utilizatiion
Underutilized
Spaces
Packet Pg. 236
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 9 input, does provide some time-limited free parking in areas where the visitor only plans to park for a short time. Examples include loading and unloading zones, downtown post office parking, etc.

To encourage adherence to new parking ordinances, Redding is taking a two-pronged (what might be called a “carrot-and-stick”) approach to parking enforcement using some of the latest technology available: First, it makes the payment of parking fees as easy as possible for patrons (addressed in the next section), and second, it is enforcing the City’s parking ordinances.

Paid parking compliance in the downtown Core is enforced by Redding Police Department (RPD) personnel. At the time of this report, a single RPD parking enforcement officer is assigned to parking
enforcement. That
officer is provided a
dedicated parking
enforcement vehicle
(Exhibit VI) with
advanced license
plate reading (LPR)
hardware and
software.

This LPR
technology can read
the license plates of
parked vehicles while the enforcement vehicle is in motion and compare those readings with a database of license plate numbers of legally parked vehicles. The database is updated in real-time each time a payment is made through one of the parking pay stations (such as the one circled in the above picture), Flowbird, text, or when a payment expires. License numbers of permit holders are similarly maintained in the database.

Exhibit VII shows that, at the time of this report, parking citations are $24.50 per violation, which compares favorably with parking fines found in other northern California cities.

Revenue generated by Redding’s parking violations is shared, with approximately $11.45 (47%) going to the City and $13.05 (53%), by statute, going directly to the state court system.

The pay stations themselves are aesthetically pleasing, blending well into the overall theme being created for downtown. However, these kiosks are not easily identifiable as places to pay for parking. Exhibit VI supports this, and it is especially true for the occasional visitor to downtown.

COMPARATIVE PARKING FINES
Redding ............. $24.50
Chico ................... $24.00
Sacramento ........ $60.00
San Francisco ..... $96.00
Exhibit VII
Exhibit VI
Packet Pg. 237
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 10 DISTANCE BETWEEN PAY STATIONS AND PARKING
Exhibit VIII illustrates that pay stations are located throughout the downtown area. They are generally no more than a block away from the parking area to which they are assigned. Each pay station has a designated parking zone that it covers. Payments can be made at the pay station for that parking zone in cash and/or by credit/debit card, via text message using a smartphone, or through the “Flowbird” application, which can be downloaded and installed on the patron’s Exhibit VIII
Pay Station
[Source: www.cityofredding.com; “Downtown Parking”, City of Redding] Packet Pg. 238
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 11 smartphone. Payments using the “text” and/or “Flowbird” methods enable fee payment without requiring the driver to leave their parked vehicle.

DISTANCE FROM PARKING TO BUSINESSES
With time-limited on-street parking now available in the downtown Core, concerns have arisen that the distance between off-street parking and downtown businesses is excessive. The 2019 parking consultant’s study addressed these concerns. Exhibit IX illustrates the distances from the planned Core-area off-street parking to various elements of the downtown Core.

As of this report, the planned off-street parking areas are now in place. Patrons visiting businesses in the downtown Core can, by selecting off-street parking facilities nearest their [Source: Watry Design/PlaceWorks, “Downtown Redding Parking Strategy”, City of Redding; August 2019] Exhibit IX
Packet Pg. 239
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 12 ultimate destination, be within no more than 600 feet (approximately two City blocks) of their destination. The difficulties the grand jury encountered in its investigation were not so much the distances from parking to the target destination, but rather, locating off-street parking nearest the target destination.

Exhibit X shows parking distances from the most remote parking locations using four local shopping and entertainment examples. The spaces at each venue are located at distances from the venue’s main entrance, which aligns with those indicated in the 2019 parking consultant’s study concerning off-street parking in the downtown Core. However, as previously discussed, the challenges users face downtown may stem more from drivers struggling to locate the nearest Exhibit X
Old Costco Example
Mt. Shasta Mall Example
[Source: Watry Design/PlaceWorks, “Downtown Redding Parking Strategy”, City of Redding; August 2019]

Civic Auditorium Example
Target Example
Packet Pg. 240
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 13 parking area for their intended destination rather than the actual distance of the nearest off-street parking to their destination.

FINDINGS
The Shasta County Grand Jury has found that:

F1. The City’s Transportation Department staff monitors cost and revenue performance, as well as payment methods used, to measure the success or failure of the program’s financial objectives. The grand jury found no evidence that monitored results are regularly communicated to the City Council and the general public, so it is unclear if objectives are being met.

F2. Two key goals of the parking program (maintaining an available parking capacity of 15% or greater and improving parking turnover) are not being regularly monitored or reported.

Failure to monitor these two metrics leaves open the question of whether the City’s objective of achieving the “most efficient use of all public and private parking spaces in downtown Redding” is being met.

F3. Entrances to off-street parking are not always clearly marked, contributing to (a) difficulty locating off-street parking, (b) the perception of a lack of downtown parking, and (c) drivers parking at distances greater than necessary from their destination. These issues contribute to the perception of excessive walking distances when closer parking might have been available.

F4. Parking signage is not always visible. Signs themselves are small or inconspicuous.

Additionally, in some cases, a sign is only visible from one direction when there are vehicular approaches from multiple directions. Without proper signage, locating convenient parking contributes to the perception of excessive walking distances.

F5. Pay station kiosks are often not clearly visible because they tend to blend into the surrounding background. As a result, visitors to downtown find it difficult to locate their closest pay station. This is especially problematic for new or occasional visitors to the downtown area.

F6. In many cases, a driver, once in a lot, cannot see the kiosk associated with that lot because it is hidden behind other parked vehicles. This inability to locate the appropriate pay station is a source of frustration and may even lead to the driver not knowing they are in a paid parking lot.

Packet Pg. 241
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 14 RECOMMENDATIONS
The Shasta County Grand Jury recommends that:

R1. On or before July 1, 2025, the Redding City Council direct the City Manager to implement, by December 31, 2025, a process of monitoring and reporting key metrics (including parking occupancy and parking turnover rates) to the City Council on at least a quarterly basis.

R2. On or before July 1, 2025, the Redding City Council direct the City Manager to ensure that all entrances to off-street parking lots are clearly identified by December 31, 2025, including signage indicating that those lots are paid parking facilities.

R3. On or before July 1, 2025, the Redding City Council direct the City Manager to ensure that conspicuous “You Are Here” type signboards are installed at each off-street parking lot and at various on-street locations throughout the downtown Core by December 31, 2025. These signboards should indicate the location of the nearest pay station and any other relevant parking information. This would significantly improve visitors’ ability to locate the appropriate pay station for each parking zone and clarify any parking restrictions for that zone.

R4. On or before July 1, 2025, the Redding City Council direct the City Manager to ensure the modification of the size, color, and placement of informational and directional parking- related signs by July 1, 2026, to make them more obvious to visitors in the downtown Core.

R5. On or before July 1, 2025, the Redding City Council direct the City Manager to ensure directional and/or informational signage is installed by December 31, 2025, that is clearly visible from the direction of each approach when there are multiple vehicular approaches to a parking area.

R6. On or before July 1, 2025, the Redding City Council direct the City Manager to ensure pay stations are made more visible by December 31, 2025. Suggested visibility-enhancing improvements include:
• Adding reflective striping to the kiosk to make it more visible. • Changing the color of the kiosk to a more visible color. • Adding lighting to each kiosk.
• Installing raised signage at or above each kiosk similar to that found at some of the on- street pay stations.

Packet Pg. 242
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 15 SOURCES AND REFERENCES
City of Redding Reports and Available Publications
• Public Works Department, “Parking Operations,” City of Redding, 2023 and 2024 • PlaceWorks, “Downtown Redding Specific Plan Update,” City of Redding, April 2022 • Public Works Department, “Report to Redding City Council”, City of Redding, April 16, 2024
• Public Works Department, “Report to Redding City Council”, City of Redding, August 18, 2022
• Public Works Department, “Report to Redding City Council”, City of Redding, September 9, 2024
• Steven Kincaid, “Downtown Off-Street Parking”, City of Redding, August 3, 2017 Local Media Reporting
• anewscafe.com “Downtown Redding Business People Unhappy With City’s New Parking System”, September 19, 2023
• KRCR, David Herenda, “Redding’s Recent Downtown Parking Program Updates Sees Mixed Reviews Between City Staff”, Redding, May 23, 2024 • City of Redding, Sonix Podcast, “Downtown Redding Parking”, January 15, 2025 Consultant Studies/Reports
• Watry Design/SpaceWorks, “Downtown Redding Parking Strategy", City of Redding, August 2019
• Watry Design/SpaceWorks, “Downtown Redding Parking Demand Analysis", City of Redding, August 2019
Interviews
• City Administrative Staff, City of Redding
• City Transportation Staff, City of Redding
• Administrative staff, Redding Chamber of Commerce

REQUEST FOR RESPONSES
The following responses are required pursuant to Penal Code sections 933 and 933.05:
• Redding City Council, F1, F2, F3, F4, F5, and F6 within 90 days • Redding City Council, R1, R2, R3, R4, R5, and R6 within 90 days Packet Pg. 243
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding 16 DISCLAIMERS
Reports issued by the Grand Jury do not identify the individuals interviewed. Penal Code section 929 requires that reports of the Grand Jury not contain the name of any person or facts that could lead to the identity of any person who provides information to the Grand Jury.

Packet Pg. 244
Attachment: ^Shasta County Grand Jury Report (9.1(b)-Consider City of Redding's response to the Shasta County Grand Jury Report regarding

CITY OF REDDING

REPORT TO THE CITY COUNCIL

Recommendation

Authorize and approve the following:
(1) Authorize the Mayor to sign the Rehabilitation Financing Agreement with Project Restoration for the redevelopment of 2171 Market Street (Assessor’s Parcel No. 102-510- 019) that includes a residual receipts loan in the amount of $1,500,000 at one percent for a 20-year term;
(2) Authorize the City Manager , or designee, to execute any other documents needed to complete the transaction;
(3) Find that allocating funding is exempt from review under the California Environmental Quality Act Guidelines, and that the rehabilitation project is exempt pursuant to Title 14, Section 15301, Existing Facilities; and
(4) Find that administrative and management activities, such as allocating funding, are exempt under 24 CFR §58.34(a)(3) administrative an d management activities under the National Environmental Policy Act. The construction project has been reviewed for environmental compliance and has been found to be Categorically excluded Subject to Section 58.5 and converts to exempt per Section 58.34(a)(12).

Fiscal Impact

Since 2022, t he total amount of Housing and Homelessness Incentive Program (HHIP) funding received from Partnership Health Plan of California (Partnership) is $5,935,782. As of June 30, 2025, the total net budget after administrat ion costs and previously funded projects is approximately $2.8 million - there are sufficient funds to support the requested $1 .5 million Market Street Manor (Manor) Project (Project) loan. The proposed funding for this project will not impact the General Fund.

MEETING DATE: August 4, 2025
ITEM NO. 9.2(b)
FROM:

***APPROVED BY***

[email protected]

[email protected]
SUBJECT: 9.2(b)--Consider Market Street Manor Rehabilitation Financing Agreement.

Steve Bade, Assistant City
Manager
Packet Pg. 245
Report to Redding City Council July 31, 2025
Re: 9.2(b)--Market Street Manor Rehabilitation Financing Agreement Page 2

Alternative Action

City Council (Council) could choose not to fund the project and provide alternat ive direction to staff.

Background/Analysis

On September 17, 2024, the Council authorized the City Manager to negotiate a Financing Agreement with C&M Opportunities, LLC (C&M) for the redevelopment of the property, a 30- unit, 1950s-era motel, located at 2171 Market Street that included a loan in the amount of $1.2 million. The September 2024 approval included a partnership with Good News Resc ue Mission (GNRM) which has since withdrawn from the partnership. C&M , taking into consideration the withdrawal of pledged funding from GNRM, and other unforeseen incidents, decided a new approach was needed to complete the rehabilitation project.

The ne w approach includes a transfer of project ownership to Project Restoration, a certified 501(c)(3) nonprofit , committed to purchasing the property and completing its conversion into permanent apartment units that host a transitional housing program. The reh abilitation will include undergrounding utilities (where feasible), installing fire sprinkler systems, adding code - compliant kitchen facilities in each unit, ensuring ADA -compliant accessibility, enhancing landscaping, parking, and sidewalk infrastructure. This redevelopment project will revitalize the southern Downtown Specific Plan area and set a precedent for future motel conversions while offering a sober living environment for at least 35 individuals.

The updated Financing Agreement considers Project Restoration acquiring the property for $2 million through a $1.1 million loan from Five Star Bank (first position after secured affordability covenants), and a $900,000 seller carryback loan from C&M (second position). To complete the property rehabilitation, staff recommends a $1 .5 million l oan funded by HHIP. The proposed residual receipts loan w ould be secured by a deed of trust in third position with a 1 percent interest rate and a 20-year repayment term. Repayment of the loan is contingent upon the ability of the project to generate residual receipts; that is, revenue in excess of approved operating expenses. At the end of the 20-year term, any principal and interest balance will be due and payable to the City. Housing Division staff will obtain annual financial statements from Project Restoration to determine if any loan payments are due and payable for each year.

Project Restoration ’ project demonstrates a sufficient projected cash flow to cover ongoing operating costs following rehabilitation, assuming a 98 percent occupancy rate. The debt service coverage ratio (DSCR) exceeds 1.15, indicating that project rents generate enough income to cover debt obligations, with approximately 15 percent of receipts remaining for unforeseen expenses. The project's financial performance supports its ability to meet superior private financing requirements. However, the estimated post -rehabilitation property value is approximately $3,040,500, approximately 16 percent less than the total debt, suggesting insufficient collateral exists in the event of default. This loan structure may be unattractive to private lenders, but the project’s significant public benefit and the population served warrants consideration.

The project addresses both state and local prior ities by providing transitional sober living for approximately 35 to 40 individuals who would otherwise be unlikely to secure stable housing.

Participants will receive supportive services through a structured two -year recovery program focused on substance abuse rehabilitation. By supporting this project, the City ensures the long - Packet Pg. 246
Report to Redding City Council July 31, 2025
Re: 9.2(b)--Market Street Manor Rehabilitation Financing Agreement Page 3

term availability of residential units post -interim housing, aligning with statewide efforts to expand addiction recovery and permanent housing options. Shasta County’s unmet nee d for sober living beds - per the latest PIT report - reinforces the project’s importance.

Environmental Review

Staff has reviewed the actions and determined that allocation of funds is exempt from environmental review under the California Environmental Quality Act, and the rehabilitation project is exempt pursuant to Title 14 Section 15301 – Existing Facilities.

Staff has reviewed the actions and determined that allocation of funds is exempt from environmental review under the National Environmental Po licy Act, pursuant to 24 CFR

58.34(a)(3) Administrative and Management Activities. The rehabilitation project has been reviewed for environmental compliance and has been found to be Categorically Excluded Subject to Section 58.5 and converts to exempt per Section 58.34(a)(12).

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.”

• 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
Rehabilitation Financing Agreement
September 17 2024 staff report
Packet Pg. 247

Market Street Manor Motel
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=============================================

REHABILITATION FINANCING AGREEMENT

THE MARKET STREET MANOR MOTEL

=============================================

By and between the

CITY OF REDDING

and

PROJECT RESTORATION

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REHABILITATION FINANCING AGREEMENT

This Rehabilitation Financing Agreement (“RFA”) is made and entered into by and between the City of Redding, a municipal corporation and general law city (“City”), and Project Restoration, a California nonprofit corporation (“Owner”).

R E C I T A L S

A. The City entered into a Memorandum of Understanding (MOU) with Partnership Healthplan of California (“PHC”), a public entity contracted with the Department of Health Care Services (“DHCS”) to receive and distribute Housing and Homelessness Incentive Program (“HHIP”) funds that meet the spending plan goals of reducing and preventing homelessness for PHC members including the activity of delivery of permanent housing. This MOU (Contract No. 9575) was executed on November 16, 2022, and expires on December 27, 2027.

B. Owner is a California nonprofit corporation, who owns property located at 2171 Market Street, Redding, Shasta County, California, Assessor’s Parcel Number 102-510-019-000, (the “Site”) within the Downtown Specific Plan Area. The Site is described in detail in Exhibit 1, “Legal Description” and depicted in Exhibit 2, “Site Map,” both attached hereto and incorporated by reference herein. The Site is currently developed with a 30-unit, stick built, two-story motel structure with five garages commonly known as The Market Street Manor Motel (“The Manor”).

C. Owner is interested in converting The Manor by way of rehabilitation and a change of occupancy into permanent, income-eligible apartment units (the “Project”).

D. The City Council (Council) at its meeting of September 18, 2024, acknowledging the need for additional income-eligible permanent occupancy units within the City of Redding, authorized the City Manager or designee to negotiate and the Mayor to sign an RFA for $1,200,000 of HHIP funds to convert the Manor into permanent housing within the Redding City limits.

E. The City and Owner desire to enter an RFA to set forth the mutual obligations of the City and Owner in connection with the financing and rehabilitation of the Project on the Site. The City will assist the Owner with financing through this RFA for eligible rehabilitation and conversion costs as a residual receipts loan to the Project, at 1% interest for a period of 20 years. The loan will be secured by the underlying Deed of Trust, attached as Exhibit 4 and the Note attached as Exhibit

5. Rent Restrictions pertinent to the resulting Project are attached as Exhibit 6 and provides an affordability covenant for 20 years.

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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

Market Street Manor Motel
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F. The City and Owner have determined that the Project constitutes a routine lender activity, utilizing available City funding, outside the reach of the California Constitution Article XXXIV and enabling legislation.

G. The Project provides income eligible housing (affordable housing) wherein at least forty percent (40%) of the resulting units or sixteen (16) units are eligible to persons making less than eighty percent (80%) of median income. Under labor code section 1720 (c)(5)E), prevailing wage does not apply to such a Project.

AGREEMENT
Definitions. The following definitions shall apply for the purposes of this RFA:

1.1 “Affordable Rent” shall have the meaning set forth in California Health and Safety Code Section 50053, as they exist as of the date of this RFA and be referred as “income- eligible unit”.

1.2 “Affordable Units” shall mean those rental units developed on the Site which are subject to the affordability controls contained in the Declaration of Rent Restrictions and may otherwise be referred to as income-eligible units.

1.3 “Affordability Period” shall mean a period commencing upon the date of the Certificate of Occupancy issued by the City’s Building Division for the Project and continuing for twenty (20) years.

1.4 “City” shall mean the City of Redding. The city is a public body, corporate and politic, exercising governmental functions and powers. The principal office of the city is located at 777 Cypress Avenue, Redding, California 96001. The phone number for facsimile transmittal to the City is (530) 225-4162. City, as it is used in this RFA, includes the Council and any assignees of or successors to its rights, powers and responsibilities.

1.5 “City Approval” shall mean written approval authorized by the City or its designee, expressly authorized to give such City approval.

1.6 “City Deed of Trust” or “City Deed” shall mean the deed of trust recorded against the Site to secure the City Loan, a copy of which is attached as Exhibit 4.

1.7 “City Loan” shall mean the loan from the City to Owner made pursuant to Sections 3.1 and

3.2. Packet Pg. 250
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

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1.8 “City Promissory Note” shall mean the promissory note to be executed by Owner which evidences the City Loan, a copy of which is attached as Exhibit 5.

1.9 "Applicable Median Income" shall mean the current area median income adjusted for family size appropriate to the size of the rental unit applicable to the City of Redding, as determined by the United States Department of Housing and Urban Development.

1.10 “Certificate of Completion” shall mean the document attached as Exhibit 12.

1.11 “Certificate of Occupancy” shall mean the document issued by the City’s Building Division certifying that the project has been completed according to the approved plans and applicable building codes.

1.12 “Reserved”

1.13 “Combined Loan-To-Value” shall mean the ratio of Other Financing, as described in Section 3.4, plus the City Loan divided by the Market Value of the completed Project.

1.14 “Completion Date” shall mean the date stated in the Schedule of Performance for the completion of construction of the Project.

1.15 “Construction” shall mean (whether capitalized) unless the context clearly indicates otherwise, the construction or rehabilitation of the Project on the Site and all required public improvements in accordance with the final plans and this RFA.

1.16 “Construction Lender” shall mean any lender approved by the City and Owner to provide construction financing to the Project, if applicable.

1.17 “Construction Loan Documents” shall mean all loan and security documents of the Construction Lender used to finance any portion of the construction of the Project.

1.18 “Contractor” shall mean the contractor or contractors with whom the Owner contracts for the construction. Contractor must have a current and valid contractor’s license issued by the California Contractors’ State License Board for the construction.

1.19 “Days” shall mean calendar days unless expressly stated otherwise. If the date or time period for any action under this RFA falls or ends on a Saturday, Sunday or federal, state or legal holiday, then such date or time period shall automatically be extended until 5 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state or legal holiday.

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1.20 “Declaration of Rent Restrictions” shall mean the document attached as Exhibit 6 and recorded in first position on the Property.

1.21 “Owner” shall mean Project Restoration, a California nonprofit corporation. The principal office of the Owner is 2174 Pine Street, Redding, CA 96001 and mailing address is P.O.

Box 491628 Redding CA 96049-1628. The phone number for facsimile transmittal to the Owner is 530.243.7516. Owner as it is used in this RFA, shall include any permitted nominee, assignee, or successor in interest as herein provided.

1.22 “Development Team” shall mean the following:

Owner: Project Restoration

Architect: Butler Engineering Group

Contractor: Restoration Group Inc., dba Cronic Construction

Engineer: Butler Engineering Group

1.23 “Effective Date” shall mean the date this RFA is signed by the City.

1.24 “Escrow Closing Costs” shall mean the fees, charges and costs identified in Section

3.3 applicable to the City Loan.

1.25 “Experiencing homelessness or homeless” shall be defined as an individual or family who lacks adequate nighttime residence; an individual or family with a primary residence that is a public or private place not designed for or ordinarily used for habitation; an individual or family living in a shelter or has recently exited as shelter or drug and alcohol rehabilitation program; an individual exiting an institution into homelessness; an individual or family who will imminently lose housing in next 30 days; unaccompanied youth and homeless families and children and youth defined as homeless under other federal statutes; or individuals fleeing domestic violence.

1.26 “Final Plans” or “Plans” shall mean the final plans submitted to the City Development Services Department for the Project as provided for in Section 4.3.

1.27 “Hazardous Substances or Materials” shall mean any hazardous or toxic substance, material or waste that is (i) regulated by any local governmental authority, the State of California Packet Pg. 252
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or the United States Government, (ii) defined as an "actual hazardous waste”, “extremely hazardous waste”, “hazardous waste”, or “waste” under Section 25110.02, 25115, 25117, or 25124 or listed pursuant to Sections 25141 and 25141.5 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control); (iii) defined as a “hazardous material,” “hazardous substance,” or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v) petroleum or petroleum hydrocarbons, or volatile organic compounds such as gasoline or diesel fuel; (vi) asbestos; (vii) listed under Chapter 10 of Division 4.5 of Title 22 or defined as hazardous or extremely hazardous pursuant to Division 21.5 of Title 26 of the California Code of Regulations; (viii) designed as a “hazardous waste” pursuant to Section 6903 et seq. of the Resource Conservation and Recovery Act of 1976 (Solid Waste Disposal Act), 42 U.S.C., Chapter 82, Subchapter 1; (ix) defined as a “hazardous substance” pursuant to Section 9601 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq.; (x) any flammable substances or explosive; or (xi) any radioactive material.

1.28 “Lender” shall mean all holders, including the Construction Lender, of any lien or encumbrance as security for a loan on all or any part of the Site and references to the Site shall mean that portion of the Site so encumbered.

1.29 “Lower-Income Household” shall mean a household earning no greater than eighty percent (80%) of Shasta County median income, as determined by the United State Department of Housing and Urban Development from time to time, as set forth in Health and Safety Code Section 50079.5, as it exists as of the date of this RFA.

1.30 “Market Value” shall mean the market value as established by an appraisal or similar valuation technique completed under the hypothetical condition that the proposed improvements have been completed and this RFA has been consummated.

1.31 “Moderate-Income Household” shall mean a household earning no greater than one hundred twenty percent (120%) of Shasta County median income, as determined by the United States Department of Housing and Urban Development from time to time, as set forth in California Health and Safety Code Section 50093, as it exists as of the date of this RFA.

1.32 “Non-Residential” shall mean the commercial and office space and their associated improvements and amenities, including, but not limited to landscaping and parking constructed according to the Final Plans and Site Development Permit 2022-02518.

1.33 Reserved
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1.34 “Notice of Completion” is the document attached as Exhibit 11.

1.16 “RFA” shall mean this Rehabilitation Financing Agreement that includes this document and the Plans and referenced exhibits and attachments, which are all incorporated in this RFA as if set forth in full in the body of the RFA. A default of any of the referenced exhibits or attachments shall be deemed a default of this RFA.

1.36 “Other Financing” shall mean all non-City financing sufficient to complete the Project pursuant to Section 3.4.

1.37 “Project” shall mean the development of The Manor which includes the conversion of a motel to income-eligible apartment units. The development is further defined by the associated Site Development Permit, final plans and this RFA.

1.38 “Procurement” shall mean those standards represented in the Uniform Administrative Requirements, Code of Federal Regulations (CFR) of 2 CFR Part 200 Subpart D and all City of Redding’s procurement policies as detailed within the Scope of Work.

1.39 “Project Budget” shall mean the specification of costs for the rehabilitation and construction as required in Section 5.1 of this Agreement. A preliminary budget is attached to this Agreement as Exhibit 3.

1.40 “Project Coordinator” shall mean the City’s designee of a City staff person to verify development and construction compliance with this RFA and process and distribute the construction draw requests.

1.41 “Parties” or “Parties to the Contract” means the City and the Owner.

1.42 “Transitional Housing Program” shall mean a time limited program where housing and supportive services are provided with the goal of helping participants achieve residential stability, increase their skill levels and/or income and obtain greater self-determination. The Transitional Housing Program offers Case Management to support the participant, and “reasonable fees” may be charged for services. The fee may not exceed the maximum rate for HUD Fair Market Rent for the type of housing and its location. Participant fees may be used for costs of operating the supportive housing or to assist supportive housing resident’s move to permanent housing.

Participant agreements must be between the Owner and the participant and Participant Agreements and conditions must be fully disclosed to potential participants and acknowledged in writing by both parties.

1.43 “Schedule of Performance” is attached as Exhibit 9.

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1.44 “Scope of Development” is attached as Exhibit 8.

1.45 “Site” shall mean the property owned by the Owner and located at 2171 Market Street, Redding, Shasta County, California, identified as Assessor’s Parcel Number 102-510-019- 000 as more fully described in Exhibit 1 and depicted in Exhibit 2.

1.46 “Site Development Permit” shall mean Site Development Permit 2022-02518 applied on December 23, 2022, and approved by the Redding Planning Commission on April 5, 2023, and attached as Exhibit 10.

1.47 “Subcontractor” shall mean those contractors or material suppliers with whom the Contractor contracts or with whom another subcontractor contracts for a portion of the construction.

Subcontractor must have a current and valid contractor’s license, issued by the California Contractors’ State License Board, for the work they are performing.

1.48 “Substantial Change” shall have the meaning described in Subsection 4.5.3.

1.49 “Units” shall mean the residential dwelling units constructed on the Site pursuant to this RFA.

2. The Agreement.

2.1 Purpose of the RFA. The purpose of this RFA is to further the goals of the city by providing housing that helps people feel secure and safe where they live, work and play; and become a catalyst for economic development, to create jobs and attract new ones, and encourage investment in the community.

The development of the Site and the completion of the Project, under this RFA, and the fulfillment generally of this RFA, are in the vital and best interests of the City and the health, safety, morals and welfare of its residents; for the purpose of community improvement and welfare; and in accordance with the City’s vision, to improve, preserve, and increase the supply of affordable housing.

It is contemplated by the parties that all activities undertaken by Owner will be in accordance with this RFA. All attachments and exhibits are hereby incorporated into this RFA by reference.

2.2 Scope of Work. It is contemplated by the parties that the Owner will develop the Project and restrict the occupancy to and rent the income eligible units at an affordable rent to a Lower- Income Households. The Scope of Work to be carried out by Owner under this RFA is more Packet Pg. 255
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particularly specified in the Final Plans, Site Development Permit and the Scope of Work as included within this agreement as Exhibit 8.

2.3 Term. This RFA shall commence as of the Effective Date and proceed as required by the RFA and the Schedule of Performance, and shall terminate upon the occurrence of all of the following (except for any deed restrictions, covenants running with the land, or other agreements or provisions which by their terms survive the term of the RFA):

a) Completion of the construction of the Project in accordance with the RFA and Plans; and

b) Fulfillment by the parties of their obligations under this RFA.

3. Project Financing.

3.1 City Assistance and City Loan. The City shall provide project financing to Owner for the sole purpose of assisting with the acquisition, rehabilitation costs or refinancing costs (City Loan) to effectuate the Project. The City Loan shall be in the form of an amortized loan to Owner pursuant to the terms and conditions described in this RFA. The total amount of the City Loan shall not exceed ONE MILLION FIVE HUNDRED THOUSAND and No/100 Dollars ($1,500,000).

3.1.1 City Loan Terms and Conditions. The City Loan shall be evidenced by a promissory note (City Promissory Note) in favor of City for the full amount of the City Loan. The City Promissory Note shall bear simple interest at one percent (1%) per annum. Principal and interest are payable in residual receipts calculated installments as identified within the City Promissory Note with payment in full of any remaining balance of principal and interest due twenty (20) years from the date set forth in the City Promissory Note. The City Promissory Note shall be secured by a Deed of Trust (City Deed) executed by Owner and recorded on the Site.

Owner may, after the end of the affordability period, seek forgiveness of the loan from City Council.

The City Deed shall be a lien on the Site which shall be junior only to a deed of trust securing Other Financing described in Section 3.4 of this RFA.

This City Promissory Note shall not be assumable by the successors and assigns of Owner without the prior written consent of the City, whereby such consent shall not be withheld.

3.2 Repayment of City Loan. One hundred twenty (120) Days from issuance of the Certificate of Occupancy, with payments based on residual receipts, as identified within the City Packet Pg. 256
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Promissory Note, will begin and continue for a period of twenty (20) years. Payments received by the City or its loan servicing agent shall be applied first to the interest and subsequently to reducing the principal as identified in the City Promissory Note. Loan payments shall be made solely from residual receipts, defined as net operating income remaining after payment of all reasonable and necessary operating expenses, reserves, and debt service obligations. If at any time residual receipts are insufficient to cover scheduled loan payments, the unpaid balance shall accrue interest but shall not be considered a default. No payments shall be required from the Owner’s personal funds or other non-project revenue sources.

Failure to make loan payments due to insufficient residual receipts shall not constitute a default under this Agreement, nor shall it be grounds for enforcement action, foreclosure, or penalties. The City shall have no recourse to the Owner’s personal assets or other non-project revenue streams to cover unpaid amounts.

Owner may pay in full, or any part of, the City Loan prior to the due date without penalty.

Subject to the notice and cure rights set forth in Section 10.1, the full amount of the City Loan, including principal and all accrued interest, shall become immediately due and payable upon the occurrence of any of the following:

a) Failure to develop the Project in accordance with the Schedule of Performance set forth in Exhibit 9 of this Agreement; or
b) Owner fails to utilize the Site for the Project within the time limit set forth or as authorized in writing; or
c) A material breach of this Agreement.

3.3 Escrow. Within thirty (30) Days of the Effective Date of this RFA, Owner agrees to establish an escrow account with a title and escrow company mutually agreeable to both parties (“Escrow Agent”). This RFA constitutes the joint escrow instruction of the City and the Owner with respect to the recording of City security documents and a duplicate original of this RFA shall be delivered to the Escrow Agent. The City and Owner shall provide the Escrow Agent with such additional escrow instructions as shall be necessary and consistent with this RFA. The Escrow Agent is hereby empowered to act under this RFA, and upon indicating its acceptance of the provisions of this Section 3.3 in writing, delivered to the City and to the Owner within five (5) Days after receipt of this RFA, shall carry out its duties as Escrow Agent hereunder. Close of escrow shall occur within thirty (30) Days from the opening of escrow.

The Escrow Agent is authorized to pay and charge the Escrow Account for the following fees, charges and costs (Escrow Closing Costs). Escrow costs are considered Project costs and will be credited against the loan amount:

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a) the escrow fee;
b) recording fees, if any; and
c) premiums for standard ALTA title insurance policies for the City Loan.

Before such payments are made, the Escrow Agent shall notify the City and the Owner of the amount of the Escrow Closing Costs. The City will pay in escrow to the Escrow Agent the agreed upon Escrow Closing Costs. Payment shall be made promptly after the Escrow Agent has notified the City and Owner of the amount of Escrow Closing Costs but no earlier than ten (10) Days prior to the scheduled date for close of escrow. The amount disbursed for the Escrow Closing Costs shall be deducted from the proceeds of the City Loan described in Section 3.1 of this RFA. In addition, the Escrow Agent is authorized to:

a) Deliver any documents to the parties entitled thereto when the conditions of the escrow have been fulfilled by the City and the Owner.

b) Record any instruments delivered through the escrow, if necessary or proper, in accordance with the terms and provisions of this Agreement. If the escrow is not in condition to close within the timeframe stated above, either party who then shall have fully performed the acts to be performed may, in writing, terminate this RFA in the manner set forth in Section 10 hereof, and demand return of its money, papers, or documents. Thereupon, all obligations and liabilities of the parties under this RFA shall cease and terminate in the manner set forth in Section 10 hereof.

If neither the City nor the Owner have fully performed the acts to be performed before the scheduled closing date, no termination or demand for return shall be recognized until ten (10) Days after the Escrow Agent shall have mailed copies of such demand to the other party or parties at the address of its or their principal place of business. If any objections are raised within the ten (10) Day period, the Escrow Agent is authorized to hold all money, papers and documents until instructed in writing by all parties to this RFA or, upon failure thereof, by a court of competent jurisdiction. If no such demands are made, the escrow shall be closed as soon as possible. Nothing in this Section 3.3 shall be construed to impair or affect the rights or obligations of the City or the Owner to specific performance.

Any amendment of these escrow instructions shall be in writing and signed by the City and the Owner. At the time of any amendment, the Escrow Agent shall agree to carry out its duties as Escrow Agent under such amendment.

All communications from the Escrow Agent to the City or the Owner shall be directed to the addresses and in the manner established in Section 11.9 of this RFA.

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The liability of the Escrow Agent under this RFA is limited to performance of the obligations imposed upon it under Section 3.3 of this RFA.

3.3.1 Execution and Deposit of Declaration of Rent Restrictions and Notice of Affordability Restrictions on Transfer of Property; Recordation of Declaration and Notice. Prior to the close of escrow, the Owner shall deposit the executed Declaration of Rent Restrictions (Declaration) and Notice of Affordability Restrictions on Transfer of Property (Notice) with Escrow Agent.

Concurrent with close of escrow, Escrow Agent shall file the Declaration and Notice for recordation on the Site with the Office of the Recorder of the County of Shasta. Said Declaration shall be recorded prior to the recordation of any deed of trust or other encumbrance securing private financing authorized by Section 3.4 and shall have priority over said encumbrance.

3.3.2 Execution and Deposit of City Promissory Note and Deed; Recordation of Deed. Prior to the close of escrow, the Owner shall deposit the executed City Promissory Note and the executed City Deed with the Escrow Agent. With close of escrow, the Escrow Agent shall file the City Deed for recordation on the Site with the Office of the Recorder of the County of Shasta. The City Deed shall be a lien on the Site which shall be junior to a deed of trust securing the Other Financing as described in Section 3.4 of this Agreement.

3.3.3 Title Insurance. Concurrently with the recordation of the City Deed on the Site, Escrow Agent shall issue and deliver to the City an ALTA Lender’s Policy of Title Insurance for the full amount of the City Loan, showing that title to the Site is vested in the Owner and insuring City as beneficiary.

3.4 Other Financing. Owner shall provide other financing which, when combined with the City Loan shall be sufficient to complete the Project. Specifically, the Owner shall provide private financing for all nonresidential elements of the Project, should these costs exist, specifically including, but not limited to, a pro-rata share of a) escrow closing costs; b) architectural and engineering design costs; c) appraisal; d) Project development and permit fees; and the full cost of the construction of the nonresidential portion of the Project. It is contemplated that the private financing shall consist of a loan from Five Star Bank and a seller carry back loan from C&M Opportunities, LLC (the “Private Loan Amount”) that will be recorded superior to the City Loan.

Owner shall provide to City evidence of such private financing according to the time limit set forth in the Schedule of Performance.

If necessary, the Owner shall contribute additional funds (i.e., personal resources, Redding Electric Utility and Pacific Gas & Electric rebates) when combined with the City Loan and the Private Loan Amount, shall be sufficient for the completion of the Project in conformity with this RFA.

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3.4.1 Approval of Other Financing Commitments. Owner shall provide to City for review and approval evidence of a firm and binding commitment for the private loan amount as well as any other private financing necessary for the Project pursuant to the time specified in the Schedule of Performance. Such commitments shall be subject only to reasonable conditions of the Lender necessary to assure the value and security of its loan. Such commitments shall not be subject to conditions which require amendment of this RFA or other agreements between Owner and City without City approval. Said commitments shall be, taken together, in a total amount sufficient to complete development of the Project as provided in the Project Budget and to fulfill all other obligations of this RFA.

3.4.2 City Approval of Private Loan Documents. All Private Loan Documents shall be in a form and substance to be considered within the convention set by accepted commercial lending practices and shall be acceptable to City and their counsel, which acceptance shall not be unreasonably withheld, conditioned or delayed.

The Private Loan Documents for the Project shall be consistent with the Lender’s commitment approved by the City and shall comply with this RFA.

Upon review and approval by the City of the Private Loan Documents, the City agrees to subordinate the City Deed to the Private Loan Documents.

3.5 Owner Responsibility. Except as specifically provided for in Section 3.1 of this RFA, the Owner shall be responsible for, and pay, all costs of designing, entitlement processing, City fees, and construction of the Project.

3.6 Limitation on Encumbrances; Subordination to Other Financing. The Owner shall not engage in any financing or any other transaction creating any encumbrance or lien on the Site, whether by express agreement or operation of law except to obtain funds to be used only for actual construction costs of the Project and other expenditures necessary and appropriate to develop the Site in accordance with this RFA. Upon written request by Owner, and upon terms and conditions reasonably approved by the City, the City will agree to subordinate the Deed of Trust provided for in Section 3.3.2, to financing obtained by Owner provided the total aggregate amount of permanent, long-term financing secured by the Owner together with the City Loan shall be subject to the provisions set forth in this Section 3.6. The City shall have the right to review and approve the terms and conditions of any such senior financing and subordination agreements, which approval shall not be unreasonably withheld. In any event, the Owner shall promptly notify the City of any encumbrance or lien that has been created on or attached to the Site.

3.7 Provisional Refinancing. The Owner may, without City consent, refinance any indebtedness secured by an encumbrance which is superior to the City Deed, provided that the refinanced encumbrance shall have the following characteristics:

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a) Amount. The refinanced encumbrance shall not secure indebtedness in a dollar amount greater than the dollar amount of the indebtedness to which the City’s interest was originally subordinated.

b) Debt Service. The debt service of the refinanced indebtedness shall be an amount which does not exceed the amount of the debt service of the indebtedness to which the City’s interest was originally subordinated.

c) No Monies to Owner. The Owner shall receive no fees or monies because of the refinancing of the indebtedness of the Project.

d) Subordination Agreement. Subject to City approval, which approval shall not be unreasonably withheld, upon request, City shall execute any document required to evidence the subordination of the City Deed to a permitted indebtedness or refinancing. City shall not be required to subordinate the Declaration of Rent Restrictions pursuant to Section 3.3.1.

3.8 Assurances to Lenders. The City and the Owner shall, in good faith, consider making such reasonable modifications to this RFA and executing such further instruments and agreements as a Lender, secured by an interest in the Site, may reasonably request to acknowledge and protect such Lender’s rights, provided such modifications, instruments, and agreements do not materially adversely affect any party’s rights or obligations under this RFA and provided such modifications, instruments, and agreements serve a material economic purpose.

3.9 No Reimbursement. Except as expressly provided in this RFA, no person shall have the right of reimbursement from the City for any funds expended by them for the Project prior to execution of this RFA. This provision does not preclude any person from receiving reimbursement from persons other than the City.

4. Preparation of Plans and Related Documents.

4.1 Project Coordinator. Subject to the terms of this RFA, City shall designate a Project Coordinator who shall, in addition to other responsibilities under this RFA, have the right of architectural and site planning review of all plans and drawings, including but not limited to complete structural and engineering plans, landscape plans, and grading plans associated with the Project as well as any changes therein.

4.2 Site Development Permit. Attached hereto as Exhibit 9 is Site Development Permit 2022- 02518 approved for the Project by the Redding Planning Commission on April 5, 2023.

Furthermore, this Project shall comply with any updates to the SDP.

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4.3 Preparation of Final Plans. In accordance with the timeline set forth in the Schedule of Performance, the Owner shall complete the preparation of the Final Plans. The Final Plans shall include all construction plans, drawings, specifications and other documents needed to obtain all required building permits for the construction of the Project. The Final Plans shall conform in all material aspects with the approved Site Development Permit and the Scope of Work attached as Exhibit 10. The Final Plans shall incorporate all related mitigation measures which are required for compliance with CEQA and NEPA approvals.

4.4 City Review of Final Plans. Upon completion of design, Owner shall provide the Project Coordinator with a complete set of Final Plans for the Project prior to or concurrently with the submittal of the Plans to the City’s Development Services Department. The Final Plans shall be approved by the City’s Project Coordinator, without further review by the City’s governing board, if a) the Plans conform in all material respects to the approved Site Development Permit, the Scope of Work, and this RFA, and b) no Substantial Changes, as hereinafter defined, have been made.

4.5 City Review of Substantial Changes to Final Plans.

4.5.1 City Approval. Notwithstanding the foregoing, any Substantial Change in the Final Plans approved by the City Project Coordinator pursuant to Section 4.4 is subject to City Planning and Building approval. If the Owner desires to make a Substantial Change in the Final Plans, the Owner shall submit such proposed change, in writing, to the City Manager for approval, which approval shall not be unreasonably withheld. Substantial Changes to the Final Plans shall be deemed approved unless disapproved within fourteen (14) Days after their delivery to the City.

Nothing in this Section shall be construed to relieve Owner of its obligations under all applicable laws regarding such changes.

4.5.2 City Disapproval. If the City disapproves, in whole or in part, any Substantial Change in the Final Plans, the City shall state, specifically and in writing, at the time of disapproval, the reasons for disapproval and the changes which the City requests to be made for its approval. The reasons for disapproval and such City-requested changes shall be consistent with the approved Final Plans and Scope of Work. In no event may the City impose a Substantial Change upon the Project or change or modify any aspect of the Project approved by the City. Revised and resubmitted plans in response to a City disapproval shall be deemed approved unless the City Manager, within five (5) Days after proper delivery to City, disapproves the resubmitted plans in whole or in part, in writing.

4.5.3 Substantial Change. A Substantial Change in the Plans shall mean any of the following changes, with respect to the Project:

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a) Changes in size or design resulting in an increase or decrease of greater than ten percent (10%) of square footage or density of Units.
b) Changes in the mix of Units.
c) Changes in the total number of Units.
d) Changes in use of exterior finishing materials affecting architectural appearance or functional use and operation of the Project.
e) Material changes in size or placement of public service or handicapped facilities; or material changes in general pedestrian or vehicular circulation in, around or through the public areas of the Project.
f) Material changes in landscaping or in size or quality of exterior pavement, pedestrian walkways, parkways, or any public areas shown and specified in the Final Plans.
g) Any change which would preclude or materially reduce the ability to use the Project as set forth in the Plans.

4.6 Purpose of Review and Approval. City’s Project Coordinator review of the Final Plans and approval of the Final Plans and any Substantial Changes is not an assurance of the adequacy or correctness of the Final Plans. City has reserved its rights pursuant to Sections 4.4 and 4.5 solely to assure that the Final Plans conform to the Site Development Permit, the Scope of Work, the requirements of this RFA, and the Plan.

5. Development of the Site.

5.1 Project Budget. At the times called for in the Schedule of Performance, the Owner shall provide to the City a complete final Project Budget for the construction of the Project in a form and with specificity reasonably satisfactory to the City, including all “hard” and “soft” costs for the Project and reflecting, as possible, executed contracts. Such final Project Budget shall be in conformance with the terms of this RFA and the Preliminary Project Budget attached hereto as Exhibit 3. Project Budget will include costs associated with any environmental, escrow costs or other costs borne by the city for or on behalf of the Owner for this Project.

5.2 Disbursement of City Loan. The parties agree that upon close of escrow described in Section 3.3, the remaining proceeds of the City Loan not expended during escrow, will be placed into a non-interest-bearing account controlled by the City’s Finance Department. Each and any disbursement of funds from this account shall require a written authorization signed by the City’s Project Coordinator authorizing the release of the requested disbursement. The City’s Project Coordinator shall provide such written approval, which shall not be unreasonably withheld, within ten (10) business days of receipt of the request from Owner.

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5.2.1 Disbursement during Construction. Prior to any disbursement of City Loan proceeds for construction, Owner and City’s Project Coordinator shall develop a mutually agreeable disbursement format. In part, this format shall include certifications from the Project’s architect and or/engineer that all materials and construction included in the request for disbursement are consistent with approved plans and specifications and that all materials have been delivered to the Site or installed and inspected as required. All disbursements shall be based on a percentage of completion and all disbursements shall reflect ten percent (10%) retention not including the costs of stored materials. (Retention shall be released upon the issuance of a Certificate of Completion for the Project.)

The City Loan shall be disbursed in accordance with the mutually agreed upon draw schedule described above. Disbursement shall be based upon satisfaction of the construction component upon which the draw request is based as determined in good faith by the City’s Project Coordinator. Disbursements shall not exceed aggregate amounts set forth in the accepted and approved construction contract/s for the Project. Owner and City acknowledge that it shall be the sole responsibility of the Owner to obtain the required written authorization for any request for disbursement.

5.3 Construction. The Owner shall construct the Project according to the requirements established in this RFA, including, but not limited to, the Scope of Work, Schedule of Performance, and the Final Plans. If the cost of construction of the Project, or any part of the Project exceeds the costs projected by Owner, the Owner shall, nevertheless, bear the responsibility to complete, at Owner’s cost, the construction of the Project in accordance with this RFA. The City and the Owner agree that such obligations of the Owner shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, be to the fullest extent permitted by law and equity, binding for the benefit of the City and enforceable by the City against the Owner, its successors and assigns. These covenants shall terminate upon the City issuing a Certificate of Completion for the Project.

5.5 Changes During Construction. The Owner covenants and agrees that the Owner shall not make or permit to be made any construction of the Project which incorporates a Substantial Change in the Final Plans without City approval of such changes. The Owner shall, prior to their occurrence, notify the City of all Substantial Changes in the construction as well as all changes which result in a material net increase in cost or extend the period for construction beyond the Completion Date. The City shall, in its sole discretion, approve or reject such changes in writing within 5 (five) days after proper delivery to City.

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Payment Bond. However, the city does not own the Project or Site. The City is a lender of public funds to a nonprofit owner who in turn, will enter into an agreement with a general contractor for the improvements to the Property. Therefore, a payment bond is not required by the city for this Project.

Under municipal code section 4.20.120 Formal Contract Procedures, J., the City shall have authority to require a faithful performance, payment, maintenance or other bond before entering a contract, to protect the best interests of the City. As part of the construction contract for the Project, Owner shall require each primary Contractor to obtain performance bonds for one hundred percent (100%) of the face amount of the construction contract price. All bonds shall be issued by a corporate surety authorized by the State of California. The cost of the bond may be considered a Project cost. Alternatively, the Owner may require the primary Contractor to provide an instrument of credit from one or more financial institutions subject to regulation by the state or federal government, pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment.

5.7 No Construction Over Utility Easements. The Owner shall not construct any of the Project on, over, or within the boundary lines of any easement for public utilities on the Site, unless such construction is provided for in such easement or has been approved by the beneficiary of the easement.

5.8 Requirements Prior to Construction. No construction of the Project shall be undertaken by the Owner until Owner has fulfilled (or City has waived) all the conditions precedent, as required by this RFA, to construction of the Project on the Site; and the Plans have been approved by all government agencies from whom approval is required.

5.9 Commencement and Completion of Construction. The Owner shall promptly begin and thereafter make reasonable efforts to diligently pursue to complete the construction of the Project and the development of the Site in accordance with the provisions of this RFA and at the times specified in the Schedule of Performance. The Owner shall complete construction not later than the time limit set forth in the Schedule of Performance. Time is of the essence.

Subject to the notice and cure rights set forth in Section 10.1, if Owner does not receive a Certificate of Occupancy for the Project on or before twenty-four (24) months from issuance of a building permit for the Project, City, in its sole discretion, shall have the unconditional, unilateral right to do any of the following:

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a) Require Owner to market and sell the Site within six (6) months and immediately repay to City all proceeds from the sale which City shall deem the City Promissory Note fully satisfied and shall release Owner from its obligation to City under the City Promissory Note; or

b) Declare a default on the City Promissory Note for a failure to obtain a certificate of occupancy for the Project and enforce the power of sale contained in the Deed of Trust.

5.10 Reports. During the period of construction, the Owner shall once every 90 Days, or more often if requested by the City Project Coordinator, submit to the City a written report of the progress of the work. The report shall be in such form and detail as may be required by the City and shall include a reasonable number of construction photographs taken since the last report if previously requested by the City. Any reports during or after construction must be maintained for five years after the close of the affordability period.

5.11 Local, State and Federal Laws. The Owner shall carry out the construction of the Project in conformity with all applicable laws, including all applicable federal and state labor standards.

5.12 Anti-Discrimination During Construction. The Owner, for itself, and its successors and assigns, agrees that the following provisions shall apply to, and be contained in all contracts and sub-contracts for the construction of the Project. (For purposes of this Section, Owner shall also mean Contractor or Sub-contractor.)

5.12.1 Employment. The Owner shall not discriminate against any employee or applicant for employment because of race, color, religion, age, disability, sex, sexual orientation, marital status, creed, ancestry, or national origin. The Owner shall ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, age, disability, sex, sexual orientation, marital status, ancestry, or national origin. Such action shall include, but not limited to, employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layout or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Owner agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

5.12.2 Advertising. The Owner shall, in all solicitations or advertisements for employees placed by or on behalf of the Owner, state that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, age, disability, sex, sexual orientation, marital status, ancestry, or national origin.

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5.13 Public Improvements. The Owner shall, at Owner’s expense, undertake and complete any modification, construction, relocation or improvement of public facilities, improvements and utilities on or for the development of the Site.

5.14 City Access to the Site. The Owner shall permit the City’s representatives access, without charge, to the entire Site at any time and for any purpose which the City considers necessary to carry out its obligations and protect its interests under the RFA. Purposes for City entry may include, without limitation, inspection of all work being performed in connection with the construction of the Project. Any City personnel entering on the Site shall register immediately at Owner’s construction office, shall be escorted by the Owner’s designee, and shall wear proper clothing and safety equipment, and shall comply with all job site safety rules. The City assumes all liability and responsibility for failure of its representatives to comply with such requirements and for their negligent acts and/or willful misconduct.

5.15 City Sign. The Owner shall furnish and erect a sign on the Site during construction identifying the City as a participant in the Project. The sign shall contain the City’s name and logo and shall be approved by the City. The sign shall be kept clean and in good repair by the Owner during construction.

5.16 Certificate of Completion. After the City has determined that the Owner has completed the Project in accordance with the Owner’s obligations under this RFA and a Notice of Completion has been recorded and the subsequent 30-day mechanic’s lien period has expired, the City will record, and will furnish the Owner with, a “Certificate of Completion” certifying such completion.

Such certification shall be a conclusive determination of satisfaction and termination of the agreements and covenants in the RFA with respect to the obligations of the Owner to construct the Project and of the dates for the commencement and completion of construction, subject to any qualifications or limitations stated in such certification. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any governmental requirements other than the City or any obligation of the Owner to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance all or any part of the Project.

The City shall prepare and execute the Certificate of Completion in a form suitable for recording in the Official Records of Shasta County pursuant to Exhibit 12.

5.16.1 Refusal to Issue. If the City refuses or fails to provide a Certificate of Completion, the City shall, within ten (10) business days after written request by the Owner, provide the Owner with a written statement, indicating in adequate detail in what respects the Owner has failed to complete the Project in accordance with the provisions of the RFA, or is otherwise in default, and what measure or acts will be necessary, in the opinion of the City, for the Owner to take or perform in order to obtain such certification. If the City wrongfully refuses to issue a Certificate of Completion, Packet Pg. 267
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or upon passage of the ten (10) business day period, the Owner may seek a writ or order compelling the City to issue the Certificate.

5.17 Notification of Contractors, Architects, and Engineers. The Owner shall notify its Project Contractors, architects and engineers in writing of the requirements of this RFA. Owner shall include, where applicable, the provisions of this RFA in contracts and subcontracts for the Project, and the Owner shall enforce such provisions.

5.18 City Inspection. The City shall have the right to inspect all books and records of the Owner related to the Project and the construction and changes in construction to assure Owner’s compliance with the provisions of this RFA and Final Plans.

5.19 Supervision of the Work. The Owner shall be solely responsible for monitoring all construction, ensuring that the construction is performed in a skillful manner, and enforcing the terms of this RFA and the construction contracts. City’s Project Coordinator’s inspections of construction are made solely for the monitoring of City Loan disbursements, assuring Owner’s performance under this RFA and protecting the City’s security interest in the Site.

5.20 Conditions Precedent to Construction. The Owner shall not begin construction until the following conditions precedent have been satisfied or waived by City:

a) The Owner has obtained all consents, approvals, entitlements and permits required for construction;
b) The Owner has submitted the required insurance and evidence of the required bonds to the City;
c) The Owner has obtained the proper grading and building permits from the city; d) The Owner has requested a notice to proceed from the City, and the City has notified the Owner in writing that it may proceed with construction after all requirements are met, including the required environmental clearance; and
e) The Owner has issued a notice to proceed under the executed construction contract.

6. Use of Site.

6.1 Uses. The Owner covenants and agrees for itself, its successors, its assigns and every successor in interest to the Site, that during construction and through the Affordability Period (as herein described) the Owner, its successors and assigns, shall devote, use, operate, and maintain the Site in accordance with the Declaration of Rent Restrictions and this RFA. All uses conducted on the Site, including, without limitation, all activities undertaken by the Owner pursuant to this RFA, shall conform to the State of California laws, applicable provisions of the City of Redding Municipal Code, and any restrictions of record or any of the recorded documents against the Site.

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6.2 Commercial. This Project does not have a retail commercial component.

6.3 Affordable Housing.

6.3.1 Number and Type of Units; Income Eligibility. The Owner agrees to develop on the Site the Project consisting of 16 income-eligible units for homeless or formally homeless persons as defined in this RFA, resulting from the conversion of a motel to permanent apartment units and such other amenities necessary and incidental to such rental uses as specified in this RFA, the Rent Restrictions, and the Final Plans. The Owner agrees to make available, restrict occupancy to, and rent the units based on the rent calculation as specified in California Health and Safety Code 50053 throughout the Affordability Period.

6.3.2 Rent Restrictions. The City and the Owner agree to enter a separate and binding Declaration of Rent Restrictions in the form set forth as Exhibit 6 to this Agreement. The City and the Owner shall each execute such document and submit it to the Escrow Agent for recording against the property prior to or simultaneously with the close of escrow as described in Section

3.3. The covenants contained in the Declaration of Rent Restrictions shall remain in full force and effect for the entire Affordability Period. The issuance of a Certificate of Completion by the City shall not affect the Owner’s obligations under the Declaration of Rent Restrictions.

6.3.3 Determination of Affordable Rent for the Affordable Units. Each Affordable Unit shall be rented at a monthly rental amount ("Affordable Rent") not to exceed the monthly rental amount in accordance with Section 50053 of the California Health and Safety Code. As of the approval of this RFA, the following formulas represent maximum Affordable Rents:

For the Lower-Income Unit: One-twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of the Area Median Income adjusted for family size appropriate to the Unit applicable to Shasta County, as determined by the United States Department of Housing and Urban Development.

Exhibit 7 provides a “Guide to Property Owners” to assist the Owner in the determination of rent amounts for lower-income households. This Income Guidelines and Affordable Rent calculation worksheet will be available to the Owner each year. City Staff will contact the Owner each year to determine a mutually beneficial time to monitor the proper calculations of rents and income eligibility of tenants for the restricted units.

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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

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6.3.4 Annual Report. Owner shall prepare and submit annually the certification reports, as requested by the City, during the Affordability Period. The report shall identify each Affordable Unit, the rental rate, and the income and family size of the occupants, as well as any other project information that is required by City. The required income information shall be supplied by the tenant in the form of source documentation kept at the Site and shall be available for City review at the City’s request.

6.4 This RFA puts forth the mutual agreement for the lending of funds for the conversion of the Property from a motel to a permanent apartment complex. Once the project is complete, the Owner shall operate the apartment location as required by federal, state and local laws and may, should the Owner see the need, provide transitional housing program overlay to the assisted units.

7. Financing Defaults.

7.1 Lender’s Option to Cure Defaults. After any default of Owner’s obligations under the RFA, each Lender (or successor to Lender) shall have the right, at its option, to cure or remedy such default (or to the extent that it relates to the part of the Site covered by its lien), within the time for cure allowed to Owner as stated in Section 10.1, and to add the cost of such cure to the debt and the lien secured by the Site. If the breach or default relates to construction of the Project, however, Lender shall not undertake or continue the construction of the Project (beyond the extent necessary to conserve or protect Project or construction already made) unless Lender assumes in writing Owner’s obligations to complete the Project on the Site in the manner provided in the RFA. Any Lender (or successor to Lender) who properly completes the Project as provided in the RFA shall be entitled, upon written request made to the City, to receive a Certificate of Completion from the City in a manner provided in the RFA.

7.2 City’s Option to Pay Debt or Purchase Site. If, after Owner’s default under the RFA and after sixty (60) Days prior written notice from the City, the Lender fails to exercise its option to construct the Project or undertakes, but does not make reasonable efforts to diligently pursue to completion, construction of the Project in accordance with the Schedule of Performance set forth in Exhibit 9 to this Agreement, the City shall have the option, exercisable only by written notice to the Lender within ten (10) Days after expiration of the sixty (60) Day period, to do one of the following:

7.2.1 Pay Debt. The City shall be entitled, at its option, to pay to the Lender the amount of the secured debt and acquire or terminate Lender’s secured position.

7.2.2 Deed in Lieu. If title to the Site has vested in Lender by way of a deed in lieu of foreclosure, the City shall be entitled, at its option, within sixty (60) Days from notice to the City of Lender’s Packet Pg. 270
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acceptance of such a deed, to a conveyance to it of the Site upon payment to Lender of an amount equal to the sum of the following:

a) The secured debt at the time of deed in lieu of foreclosure (less application of rentals and other income received during foreclosure proceedings). b) All expenses with respect to the deed in lieu of foreclosure. c) The costs of Project improvements made by Lender.

7.2.3 Foreclosure. The City shall have the right to bid at any foreclosure sale held by or for any Lender on the Site.

7.3 City’s Option to Cure Loan Default. In the event of a default prior to the completion of the Project by the Owner, or any successor in interest to the Owner by reason of any of its obligations under any mortgage or other instrument creating an encumbrance or lien upon the Site, the City may at its option cure such default or breach following the expiration of any applicable cure period (or sooner upon notice to the Owner), in which case the City shall be entitled, in addition to any of its other rights or remedies, to reimbursement from the Owner of all costs and expenses incurred by the City in curing such default and to a lien upon the Site for such reimbursement, provided that any such lien shall be subject always to the lien of any than existing liens on the Site authorized by this RFA (including any lien contemplated, because of advances yet to be made).

7.4 Inclusion in Loan and Security Instruments. Either City’s rights or remedies under this Section shall be included in all loan and security instruments of Lender related to the Site; or City and such Lender shall enter an intercreditor agreement in a form and substance acceptable to the City and its counsel, incorporating such rights and remedies.

8. Owner’s General Obligations.

8.1 Obligation to Refrain from Discrimination. The Owner covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin, ancestry, familial status, or disability as defined in California Government Code Section 12955, et seq., in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall the Owner itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Site. The foregoing covenants shall run with the land.

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8.2 Non-Discrimination Covenants in Deeds, Leases and Contracts. All such deeds, leases or contracts shall contain or be subject to the following nondiscrimination or non-segregation clauses as are contained in Sections 33416 and 33436 of the California Health and Safety Code:

8.2.1 In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land herein conveyed. The foregoing covenants shall run with the land.”

8.2.2 In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:

There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.”

8.2.3 In contracts: “There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the premises.”

The covenants contained in this Section 8.2 shall remain in effect in perpetuity, and issuance of a Certificate of Completion by the City shall not affect the Owner’s obligations under this Section.

8.3 Payment of Taxes, Assessments, Encumbrances and Liens. The Owner shall pay prior to delinquency all real estate taxes and assessments assessed and levied on the Site, always prior to the release of the lien of the City’s Deed of Trust. Prior to issuance of a Certificate of Packet Pg. 272
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Completion, the Owner shall not allow to be placed on the Site any mortgage, trust deed, encumbrance or lien unless expressly authorized by this RFA or the City. The Owner shall promptly remove or satisfy any levy or attachment made on all or any part of the Site. Nothing contained in this RFA shall prohibit the Owner from contesting the validity or amounts of any tax assessment, encumbrance or lien, nor to limit the remedies available to the Owner in respect to such contest.

8.4 Effect and Duration of Covenants. The covenants contained in the RFA and Declaration of Rent Restrictions which subject and burden the Site with covenants regarding use of the Site and regarding nondiscrimination, are covenants running with the land. It is intended and agreed that the agreements and covenants provided in this RFA and the Declaration of Rent Restrictions shall be covenants running with the land and equitable servitudes thereon and that they shall, in any event, and without regard to technical classifications or designation, be binding, to the fullest extent permitted by law and equity, for the benefit and in favor of, and enforceable by, the City, the City’s successors and assigns, any other governmental entity acting within its authority and any successor in interest to all or any part of the Site against the Owner, its successors and assigns and every successor in interest to all or any part of the Site, and any party in possession or occupancy of the Site and any subcontracting party or parties or other transferees under this RFA.

8.5 Effect of Violation. The City is deemed the beneficiary of the terms and provisions of this RFA, the Declaration of Rent Restrictions and the covenants running with the land, both for its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose benefit this RFA and the covenants running with the land have been provided. The RFA and the Declaration of Rent Restrictions shall run in favor of the City without regard to whether the City has had or does have any interest in the Site.

8.6 Indemnification. The Owner hereby agrees to protect, defend, indemnify and hold harmless, the City, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands, penalties, fines, defense costs, and consequential damage or liability of any kind or nature, arising directly or indirectly out of the obligations or operations herein undertaken by the Owner, caused in whole or in part by any act or omission of the Owner, any contractors or subcontractors, directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to concurrent active or passive negligence, except where caused by the negligence or willful misconduct of the City. The Owner will conduct all defenses at its sole cost and expense and the City shall have the right to approve or disapprove legal counsel defending the City. The City shall be reimbursed for all costs and attorney's fees incurred in enforcing this obligation. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Owner. This Section 8.6 shall survive the termination of this RFA, irrespective Packet Pg. 273
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of the reason for its termination, until a date that is ten (10) years following the date the City furnishes the Owner with a Certificate of Completion.

8.6.1 D. The obligation to indemnify, protect, defend, and hold harmless set forth in this Section applies to all claims and liability regardless of whether any insurance policies are applicable. The policy limits of said insurance policies do not act as a limitation upon the amount of indemnification to be provided by Contractor.

8.7 Insurance Requirements and Public Safety Protections. Owner shall promptly take steps to protect the public from the risk of injury whether from the condition of the Property or Owner’s activities in connection with the Property. The Owner shall obtain and maintain, or require the contractor and subcontractors for the Project to purchase and maintain the following insurance for claims which may result from the operations under the RFA of the Owner, any contractor, subcontractor or anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable:

8.7.1 Owner Insurance Requirements. Owner shall procure and maintain for the duration of the RFA insurance against claims for injuries to persons or damages to property which may arise from or in connection with Owner’s activities hereunder. The cost of such insurance shall be borne by Owner. Owner shall maintain the following noted insurance:

Coverage Required Not Required

Commercial General Liability X
Comprehensive Vehicle Liability X
Workers Compensation and Employee Liability X
Builder’s Risk/Course of Construction X
Hazard/All Risks X (Following Construction)

8.7.1.1 Course of Construction/Builder’s Risk Insurance. Owner shall provide proof of Course of Construction/Builder’s Risk Insurance providing coverage for “all risks” of loss during the construction phase of the Project in the amount of the combined total of the City and Other Financing as stated in Section 3.1 and 3.4 of this RFA.

8.7.1.2 Hazard Insurance. Following completion of construction, Owner shall keep the improvements now existing or hereafter erected on the Project Site insured for full replacement value against loss by fire, hazards included within the term “extended coverage,” and such other hazards as the City may require and in such amounts for the full remaining term of the RFA.

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8.7.2 General Contractor Insurance Requirements. During construction, the General Contractor shall maintain the following noted insurance:

Coverage Required Not Required

Commercial General Liability X
Comprehensive Vehicle Liability X
Workers Compensation and Employee Liability X
Builder’s Risk/Course of Construction X
Hazard/All Risks X

8.7.2.1 Minimum Scope and Limits of Insurance. Coverage shall be at least as broad as:

(a) Insurance Services Office form number CG-0001, Commercial General Liability Insurance, in an amount not less than $1,000,000 per occurrence $2,000,000 general aggregate for bodily injury, personal injury and property damage;

(b) Insurance Services Office form number CA-0001, Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $1,000,000 combined single limits per accident applicable to all owned/non-owned and hired vehicles;

(c) Statutory Workers Compensation required by the Labor Code of the State of California and Employers' Liability Insurance in an amount not less than $1,000,000 per occurrence. Both the Workers Compensation and Employers' Liability policy shall contain the insurer's waiver of subrogation in favor of the City, their respective elected officials, officers, agents, employees and volunteers;

(d) Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions, and any modifications thereof, must be declared to and approved by the Risk Manager of the City of Redding.

8.7.3 Other Insurance Provisions. All policies required by this RFA are to contain or be endorsed to contain the following provisions:

For General Liability and Automobile Liability coverages:

a) The City, its elected officials, officers, employees, agents, and volunteers are to be covered as additional insureds as respects: liability arising out of work or operations performed by or on behalf of Owner and/or Contractor; premises owned, leased, or used by Owner and/or Contractor; or automobiles owned, leased, hired, or borrowed by Owner and/or Contractor. The coverage shall Packet Pg. 275
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contain no special limitations on the scope of protection afforded to the City, its elected officials, officers, employees, agents, or volunteers.

b) The insurance coverage of Owner and/or Contractor shall be primary insurance as respects the City, its elected officials, officers, employees, agents, and volunteers. Any insurance or self- insurance maintained by the City, its elected officials, officers, employees, agents, or volunteers shall be more than Owner’s and/or Contractor’s insurance and shall not contribute with it.

Each insurance policy required by this RFA shall be endorsed to state that coverage shall not be cancelled except after thirty (30) Days prior written notice has been given to the City Risk Manager.

8.7.4 Acceptability of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less than A-VII. This requirement may, however, be waived in individual cases provided, however, in no event will a carrier with a rating below B: IX be acceptable.

8.7.5 Verification of Coverage. Owner shall be responsible for furnishing the City Risk Manager with all certificates of insurance and original endorsements affecting specific coverage required by this RFA. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. The City may withhold Project payments if required certificates of insurance and endorsements have not been provided. The City Risk Manager reserves the right to require complete certified copies of all required insurance policies.

8.7.6 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Risk Manager.

8.8 Failure to Maintain. If the Owner fails to obtain or maintain, or cause to be obtained and maintained, any insurance required by this RFA, the City shall have the right to purchase the insurance and add to the principal amount of the City Loan the full costs to City of obtaining such insurance.

8.9 Information as to Members. The Owner shall, during the period between the Effective Date of the RFA and the issuance of the Certificate of Completion, do the following:

8.9.1 Notice of Ownership Changes. The Owner will promptly notify the City in writing of all changes affecting ten percent (10%) or more in the relative distribution of ownership of membership interests, legal or beneficial, or with respect to the identity of the parties in control of the Owner or the degree of such control.

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8.9.2 Statement of Ownership Interests. The Owner shall, at such times as the City may request, furnish the City with a complete statement, setting forth the names of all of the owners or stockholders, legal or beneficial, of the Owner which hold ten percent (10%) or more interest or control in the Owner, all as indicated by the records of the Owner. The Owner shall furnish such other information or knowledge that it may have regarding such holdings which is different from the corporate records, including beneficial ownership or control. Such lists, data, and information shall in any event be furnished to the City immediately prior to execution of the RFA as a condition precedent to City’s obligations under the RFA and annually thereafter until the issuance of the Certificate of Completion.

8.9.3 Partnership Statement. If the Owner is a partnership, information shall be provided under the terms in this Section, as to the ownership of partnership interests of the partners who own interest in the Owner.

9. Prohibitions Against Assignment and Transfer.

9.1 Development Team. The City has entered this RFA in reliance upon the identities and qualifications of the Development Team. The Owner may not change or modify the Development Team without the prior written consent of the City, whereby such consent shall not be withheld.

9.2 Transfer of Interest. The Owner represents that it has informed its members, and the Owner shall inform any successors in interest of the provisions of this Section. Subject to restriction of federal and State securities regulation and prior to issuance of a Certificate of Completion, the Owner shall not permit transfers of ownership which would result in a change in management authority or fiscal ability with respect to Owner or, with respect to the parties in control of the Owner or the degree of such control, by any method or means, including, but not limited to, sale, transfer, increased capitalization, merger with another corporation, corporate or other amendments, issuance of additional members or new membership interests or classification of such interests, or otherwise. With respect to this provision, the Owner and the parties signing the RFA on behalf of the Owner represent that they have the authority of all their existing members holding ten percent (10%) or more interest in the Owner to agree to and bind them to this provision.

9.3 Transfer or Assignment.

9.3.1 Transfer or Assignment of Interests, Rights, or Obligations in the RFA. Except as required to obtain the financing approved by the City, the Owner shall not, prior to issuance of the Certificate of Completion, make any total or partial sale, assignment or transfer of any interest, right or obligation under this RFA without the prior written approval of the City.

9.3.2 Transfer or Assignment of Interests in the Site. Except as required to obtain the financing approved by the City, the Owner shall not, prior to issuance of the Certificate of Packet Pg. 277
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Completion, make any total or partial sale, assignment or transfer of any interest in the Site without the prior written approval of the City.

9.3.3 One-Time Transfer to Controlled Single Asset Entity. Notwithstanding the foregoing, the City Manager is hereby authorized to approve, in writing, a one-time assignment by Owner of all of its rights and obligations under the RFA, and all of its interest in the Site, to a single-asset corporation, partnership, or limited liability company wholly owned or controlled by Owner, subject to Owner’s compliance with the requirements of this RFA.

9.3.4 Conditions of Approval. The City shall be entitled to require the following as conditions to any approval of any assignment or transfer of any interest in the Site, the RFA, or the Owner:

a) Qualifications and Financial Responsibility. Any proposed transferee shall have the qualifications and fiscal responsibility, as determined by the City, necessary and adequate to fulfill Owner’s obligations under the RFA.

b) Assumption of Obligations. Any proposed transferee shall, for itself and its successors and assigns, expressly assume all of Owner’s obligations under the RFA and shall agree to be subject to all the conditions and restrictions to which the Owner is subject. Said assumption of obligations shall be in writing in recordable form approved by the City and shall expressly be for the benefit of the City. The fact that any such transferee shall not have assumed such obligations or so agreed, shall not relieve such transferee from such obligations, conditions, or restrictions, or deprive the City of any rights or remedies or controls with respect to all or any part of the Site or this RFA that the City would have had, had there been no such transfer or change.

c) Review of Documents. The Owner shall submit to the City for review and approval all legal documents involved in effecting such transfer. Such documents shall be subject to the City’s prior written approval.

d) Limits on Consideration. Prior to issuance of the Certificate of Completion, the consideration payable for the transfer by such transferee of any interest in the RFA shall not exceed the actual costs incurred for the Project, if any, made. It is the intent of this provision to preclude assignment of the RFA or transfer of the Site for profit prior to the completion of the Project. The transferee’s obligation to pay any excess to the city may be satisfied by the transferee’s assumption of the City Promissory Note.

e) Other Conditions. The Owner and such transferee shall comply with such other conditions as the City may find necessary and reasonable to achieve and safeguard the purposes of the RFA.

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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

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9.3.5 Owner Obligations Not Relieved. In the absence of specific written agreement by City to the contrary, no such transfer or approval of transfer by City shall relieve the Owner, or any other party bound in any way by the RFA, from any of its obligations under the RFA.

10. Defaults and Remedies. The provisions of this Section are in addition to any provisions in the City Deed regarding default and remedies. Subject to any extension of time permitted by this RFA, a failure or delay by the City or the Owner to perform any term or provision of this RFA constitutes a material default of this RFA.

10.1 Cure. Except as otherwise provided in the RFA, if either party defaults in, or breaches, the RFA, such party shall cure such default or breach within thirty (30) Days after receipt of written notice from the other party of such default or breach. If the defaulting party does not cure or demonstrate to the reasonable satisfaction of the other party that it has acted and continues to act promptly and diligently to cure the default within such time, the aggrieved party may declare an “Event of Default” and institute proceedings to cure and remedy such default or breach, including, but not limited to, proceedings to compel specific performance by the party in default. While neither the City nor Owner is relieved of any obligation under this RFA to give notice, mere failure to notify the other party shall not be deemed a waiver of the defaulting party’s default.

10.2 Termination by City Prior to Completion of Construction. If, prior to issuance of Certificate of Completion and without City approval, the Owner assigns any interest in the RFA or the Site, or permits a change in ownership or control in the Owner in violation of this RFA, defaults in its obligations related to the development of the Project as set forth in the RFA, abandons or unreasonably suspends construction work on the Project, or permits any unauthorized encumbrance or lien (including tax liens) and fails to discharge any such unauthorized lien or encumbrance then the City may elect to terminate the RFA at its option or invoke any other remedy provided in this RFA, subject to the cure period provided for in Section 10.1. In such event, the City shall be entitled to damages, without any deduction, offset, or recoupment whatsoever.

10.3 City Right to Purchase. In addition to any other rights of the City, in the event of termination of the RFA, the City shall have, for a period of six (6) months after such termination, the right to purchase the Site. The purchase price shall be the sum of (1) the cash actually expended by Owner in construction of the Project or portion thereof being acquired; (2) plus the appraised value of the Site at approximately the Effective Date of the RFA; less the sum of (1) the balance owing under the City Promissory Note or other indebtedness secured by the Site, including construction loans or liens; (2) any gains or income withdrawn or made by Owner from the Site; and (3) any amounts, including interest on loans, then due from Owner to City.

10.4 Other Rights and Remedies of City. The City shall have the right to institute such actions or proceedings as it may deem desirable to carry out the purposes of this Section.

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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

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10.5 No Waiving by Delay. Any delay by the City or Owner in asserting any rights under this Section 10 shall not operate as a waiver of such rights or to deprive such party of, or limit, such rights in any way. Any waiver in fact made by the City or Owner with respect to any specific default shall not be considered as a waiver of the rights of such party with respect to any other defaults or with respect to the default except to the extent specifically waived in writing.

10.6 Assignment of Contracts; Power of Attorney. Subject to the rights of the Construction Lender, if any, and upon execution by the City of appropriate assignment and assumption documents, all contracts with Contractors, subcontractors, suppliers and other entities related to the construction of the Project and all sources of funds for construction of the Project are irrevocably assigned by the Owner to the City upon City demand after default by the Owner.

10.7 Delay for Causes Beyond Control of Party. For the purposes of any of the provisions of the RFA, neither the City nor the Owner shall be considered in breach of, or default in, its obligations with respect to the preparation of the Site for development, or the beginning, prosecution, and completion of construction of the Project, if delay in the performance of such obligations is due to unforeseeable causes beyond the delayed party’s control and without its fault or negligence. Unforeseeable causes shall include acts of God, acts of a public enemy, acts of the State or Federal Government, acts of the other party, fires, floods, epidemics, discovery of protected species or historical artifacts upon the Site, quarantine restrictions, strikes, freight embargoes, a general moratorium on financing for projects of the same type, and unusually severe weather (as for example, floods, tornadoes, or hurricanes) or delays of subcontractors due to such causes. In the event of the occurrence of any such enforced delay, the time or times for performance of such obligations of the City and Owner shall be extended for the period of the enforced delay, as determined by the City, provided that the party seeking the benefit of the provisions of this Section shall, within thirty (30) Days after the party has or should have knowledge of any such enforced delay, have first notified the other party, in writing, of the delay and its cause, and requested an extension for the period of the enforced delay. In no event, however, shall any period of enforced delay exceed ninety (90) Days if the party claiming enforced delay has not demonstrated, to the reasonable satisfaction of the other party, that it has acted and continues to act promptly and diligently to terminate such enforced delay.

10.8 Rights and Remedies Cumulative. The rights and remedies of the parties to the RFA shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for the same default or breach or of any of its remedies for any other default or breach by the other party. The remedies set forth in this RFA shall not be construed to deny either party of any other rights in law or equity which may be available to it in the event of a breach of this RFA. No waiver made by either such party with respect to the performance of any obligation of the other party or any Packet Pg. 280
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

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condition to its own obligation under the RFA shall be considered a waiver of any rights beyond those expressly waived in writing.

10.9 Claw back and Recapture Provision Regarding Funding. HHIP funding is the source funding for the loan associated with this transaction and has been funded by Partnership Healthplan of California with funding received from American Rescue Plan of 2021. Owner must comply with the milestones, timely completion, notifications, reporting requirements, and any failure to meet the requirement of this RFA, may result in required repayment of the funds.

11. General Provisions.

11.1 Time for Actions. The City and the Owner shall each do the actions required of them, on or before the times specified in this RFA. Unless otherwise provided, the City shall give required approvals or disapprovals within fourteen (14) Days after submission, except matters which must be decided by the City Council of the City, which shall be decided within forty-five (45) Days.

11.2 Counterparts. This RFA may be signed in counterparts and is executed in two (2) duplicate originals, each of which is deemed to be an original and the same instrument. This RFA includes Pages 1 through 28 and Exhibits 1 through 12, which constitute the entire understanding and agreement of the parties.

11.3 Priority of Contents of RFA. In the event of a conflict between the terms of this RFA and the Exhibits, this RFA shall be given precedence.

11.4 Inspection of Books and Records. The City has the right, at all reasonable times and upon reasonable notice, to inspect the books and records of the Owner pertaining to the Site as necessary to assure compliance with the provisions of this RFA. The Owner shall keep such books and records as the City may require assuring Owner’s performance of its obligations under this RFA.

11.5 Fees, Commissions, Gifts or Interests. The City shall not be liable for any real estate commissions, brokerage fees or finder’s fees which may arise from this RFA. The city and the Owner each represent that neither has engaged any broker, agent or finder, and that neither claims such a commission or fee, in connection with this RFA. The Owner shall pay no fee or commission, make no gifts and provide no interest in the Loan to any employee or official of the City or the City of Redding.

11.6 Entire Agreement. This RFA and all the attached Exhibits integrate all the terms and conditions related or incidental to its subject matter and supersede all negotiations or previous agreements between the parties with respect to its subject matter.

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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

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11.7 Waivers and Amendments. No waivers, changes, amendments or alterations shall be effective unless in writing and signed by all parties. However, minor amendments which do not result in a substantial or functional change to the original intent of the Agreement and do not cause an increase to the maximum amount payable under this Agreement may be agreed to in writing between Owner, and the City Manager.

11.8 Non-liability of City Officials and Employees. No member, official or employee of the City shall be personally liable to the Owner, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Owner or its successors, or on any obligations under the terms of this RFA.

11.9 Notices and Demands. Any notice, demand or other communication under the RFA by either party to the other shall be deemed to have been full and properly given when made in writing, enclosed in a sealed envelope, and deposited in the United States Post Office, certified mail, postage prepaid, to the addresses for Owner and City stated in Sections 1.21 and 1.4, respectively, or delivered by facsimile to the numbers listed for the Owner and City in Sections

1.20 and 1.4, respectively, and evidenced by a fax receipt.

11.10 Jurisdiction, Venue and Attorneys’ Fees.

11.10.1 Jurisdiction and Venue. Any legal action(s) concerning the RFA or the performance of any party there under shall be brought only in the court of appropriate jurisdiction in the County of Shasta. Both the Owner and the City agree that jurisdiction and venue shall only be in said courts.

11.10.2 Attorneys’ Fees. In the event any legal action, including arbitration, is brought by either party to this RFA to enforce this RFA or for breach of this RFA or for a declaration of the rights and duties under this RFA, the prevailing party shall recover costs and reasonable attorney’s fees in addition to any other relief to which that party may be entitled.

11.10.3 Housing First. To the greatest extent possible, when providing Permanent Supportive Housing, the Owner should follow the core components of Housing First.

11.10.4 Authority to Sign. Each of the Parties herein represents and warrants that the execution, delivery, and performance of this Agreement has been duly authorized and signed by a person who meets statutory or other binding approval to sign on behalf of its respective organization as named in this Agreement.

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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

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THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK
IN WITNESS WHEREOF, the parties have executed this RFA as of the Effective Date.

OWNER:

PROJECT RESTORATION

By: ____________________________
Robert Cronic, Chief Executive Officer
Tax ID No.37-2154374

CITY:

CITY OF REDDING

By: _________________________________
Jack Munns, City Mayor

ATTEST:
____________________________________
By: Sharlene Tipton, City Clerk

APPROVED AS TO FORM:
____________________________________
By: Gretchen Stuhr, Assistant City Attorney II

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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

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LIST OF EXHIBITS

EXHIBIT 1: Legal Description of Site
EXHIBIT 2: Site Map
EXHIBIT 3: Preliminary Project Budget
EXHIBIT 4: City Deed of Trust
EXHIBIT 5: City Promissory Note
EXHIBIT 6: Declaration of Rent Restrictions
EXHIBIT 7: Guidance to Property Owner
EXHIBIT 8: Scope of Work
EXHIBIT 9: Schedule of Performance
EXHIBIT 10: Site Development Permit
EXHIBIT 11: Notice of Completion
EXHIBIT 12: Certificate of Completion
EXHIBIT 13: Fair Housing Poster

Packet Pg. 284
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) Exhibit 1

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF REDDING, COUNTY OF SHASTA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

LOTS 41, 42 AND 43 AS SHOWN ON THE MAP OF HONN'S ADDITION TO THE CITY OF REDDING, RECORDED IN THE OFFICE OF THE COUNTY RECORDER, RECORDED MAY 21, 1888 IN BOOK OF OLD PLATS AT PAGE 40, SHASTA COUNTY RECORDS.

EXCEPTING THEREFROM ALL THAT PORTION THEREOF DESCRIBED IN THE DEED TO THE STATE OF CALIFORNIA RECORDED OCTOBER 14, 1940 IN BOOK 171 OF OFFICIAL RECORDS AT PAGE 446.

APN: 102-510-019-000
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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

RAILROAD AVE

GOLD ST

WALDON ST
ADA ST

CLIFF DR

ANDERSON ST

SCHLEY AVE

CENTER ST

LINCOLN ST

SONOMA ST

EAST ST

CONTINENTAL ST

GRAPE AVE

PINE ST

SOUTH ST

GOLD ST

EAST ST

GARDEN AVE

MARKET ST
T est
MTG. DATE:

ITEM:

ATTACHMENT:

LOCATION MAPGIS DIVISION

INFORMATION TECHNOLOGY DEPARTMENT
DATE PRODUCED:
0 400200 Feet-
SEPTEMBER 5, 2024
2171 MARKET ST (0.46 ACRES)
AP# 102-510-019
P:\Housing\ProProjects\2171_MarketSt_LocationMap.aprx
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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

SOURCES
AMOUNT

AVAILABLE ACQUISITION

REHABILIATION

CONSTRUCTION COSTS
Five Star Loan 1,100,000.00 $ 1,100,000.00$
Seller Carry Back to Project Restoration 900,000.00$ 900,000.00$ HHIP City Loan 1,500,000.00 $ 1,500,000.00 $
Project Restoration Acquisition and Rehab Project Cost3,500,000.00$ 2,000,000.00$ 1,500,000.00$ Exhibit 3 - Preliminary Budget
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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) EXHIBIT 4

RECORDING REQUESTED BY:

City of Redding

CITY BUSINESS - NO FEE
Section 6103 of the Government Code
of the State of California

AND WHEN RECORDED MAIL TO:

City of Redding – Housing Division
P.O. Box 496071
777 Cypress Avenue
Redding, CA 96049-6071

CITY OF REDDING DEED OF TRUST AND ASSIGNMENT OF RENTS

THIS DEED OF TRUST is made this _____ day of _________ 2025, PROJECT RESTORATION, a California nonprofit corporation, as to equitable title, herein called “Trustor,” and/or “Borrower” whose address is 2171 Market Street, Redding, CA 96003; PLACER TITLE COMPANY, herein called “Trustee,” whose address is 2145 Larkspur Lane, Suite A, Redding, CA 96002; and the CITY OF REDDING, a municipal corporation and general law city, whose address is P.O. Box 496071, 777 Cypress Avenue, Redding, California 96049-6071, herein called “Beneficiary” and/or the “Lender”.

WITNESSETH: That Trustor Irrevocably, Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Redding (“City”), County of Shasta, State of California, described as:

EXHIBIT A - Legal Description

ASSESSOR’S PARCEL NUMBER: 102-510-019-000

TOGETHER WITH: (a) all buildings, improvements and fixtures, now or in the future thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, and (c) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues, and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement.

BORROWER HEREBY expressly acknowledges and agrees that the subject loan, this Deed of Trust, and the property which serves as security for the Note and Deed of Trust, involves a conversion of an existing motel to income-eligible apartment housing, one that the Borrower is expressly entering into for the provision of affordable housing and not for profit, and not in any way related to Borrower’s home or residence. As such, Borrower further acknowledges and agrees that Lender likewise is making this loan on the aforesaid basis, and thus intends to enforce any and all of its rights accordingly.

Packet Pg. 288
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) City of Redding Deed of Trust Page 2 of 9

FOR THE PURPOSE OF SECURING:

1. Payment of the sum of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000) with interest thereon according to the terms of a certain Promissory Note of even date herewith, designated as the “Residual Receipts Promissory Note” made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof.

2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes reciting that they are secured hereby, or (b) as may be added to the indebtedness secured hereby in accordance with the provisions of this Deed of Trust.

3. Performance of each and every obligation, covenant, promise, or agreement of Trustor contained herein.

4. Payment, with interest thereon, of any other present or future indebtedness or obligation of the Trustor (or of any successor in interest of the Trustor to said property) to the Beneficiary reciting that they are secured hereby, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter.

5. Performance of each agreement of Trustor contained in any Rehabilitation Financing Agreement (including without limitation the Exhibits thereto) entered into between Trustor and Beneficiary for the development, construction of improvements, adoption of rent restrictions or other affordability covenants, or operation of certain activities on the above-described property.

TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:

1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged, or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer, or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings, and equipment located thereon.

If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements or construction of affordable housing on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding: (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) Packet Pg. 289
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) City of Redding Deed of Trust Page 3 of 9

calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to its last known address, or by personal service of the same; (d) that work shall not cease on the construction of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims for labor and materials furnished in connection with the said construction and/or rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the said property; and (f) not to permit any stop notice claims to be presented to Beneficiary. If the said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full, and complete records of all work and materials furnished to the said property. Trustee, upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein and to act thereon hereunder.

2. To provide and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall contain an endorsement that such insurance shall not be canceled or modified without thirty (30) days advance written notice to Beneficiary, shall be for a term and in form, content, amount, and with such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of Trustor hereunder.

At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor, by executing this Deed of Trust, specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy theretofore delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) upon prior notice to Trustor, to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of rebuilding or restoring the building or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary.

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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) City of Redding Deed of Trust Page 4 of 9

Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder.

3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes affecting such property; (b) when due, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment; (c) when due, all encumbrances, charges and liens, with interest, on said property, or any part thereof, which are or appears to be prior or superior hereto; (d) if the security of this Deed of Trust is a leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold; (e) all costs, fees and expenses of this trust; (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made; (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable.

If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest.

4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, then Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, contest, or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto; and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so, expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest.

5. To perform each agreement of Trustor contained in any Rehabilitation Financing Agreement (including without limitation the Exhibits thereto) entered into between Trustor and Beneficiary for the development, construction of improvements, adoption of rent restrictions or other affordability covenants, or operation of certain activities on the above-described property.

6. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorneys' fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property is directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust.

7. To pay immediately and without demand, all sums expended under the terms of this Packet Pg. 291
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) City of Redding Deed of Trust Page 5 of 9

Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby.

8. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas, or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any part thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing.

9. That any award, settlement, or damages for injury or damages to such property, or in connection with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance.

10. That, by accepting payment of any sum secured hereby after its due date, or by making any payment, or performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay.

11. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property; (b) consent to the making of any map or plat thereof; (c) join in granting any easement thereon; (d) join in any agreement subordinating the lien or charge hereof.

12. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof.

13. That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive evidence of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as a re-assignment of the rents, issues, royalties and profits hereinafter assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them).

14. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Deed of Trust for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents Packet Pg. 292
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) City of Redding Deed of Trust Page 6 of 9

from the property affected by this Deed of Trust, or cause Beneficiary to be (a) "mortgagee in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Deed of Trust, or for any negligence in the management, upkeep, repair, or control of such property. This is an absolute assignment, not an assignment for security only, and Beneficiary's right to rents, issues, and profits is not contingent upon, and may be exercised without possession of, the property affected by this Deed of Trust.

Beneficiary confers upon Trustor a license (“License”) to collect and retain the rents, issues, and profits of the property affected by this Deed of Trust as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues, and profits without notice and without taking possession of the property affected by this Deed of Trust. This right to collect rents, issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon City or Trustee the duty to produce rents, issues, or profits or maintain all or any part of the property affected by this Deed of Trust. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties, and profits and shall be authorized, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make, cancel, enforce, and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties, and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties, and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties, or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties, and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default nor affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties, and profits, less all costs of operation, maintenance, collection, and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor a subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option.

15. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term “Lease” as used herein shall mean the lease creating the “leasehold estate”; (b) Trustor shall not amend, change, or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request, or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and Packet Pg. 293
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) City of Redding Deed of Trust Page 7 of 9

comply with all covenants, agreements, terms, conditions, and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver of any other violation. If the security for this Deed of Trust is a leasehold estate, the term "said property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary.

16. That any default by Trustor in payment of any indebtedness secured hereby or performance of any covenant or condition set forth in a Rehabilitation Financing Agreement between Trustor and Beneficiary shall constitute a default under this Deed of Trust, and upon default by Trustor under the terms of any encumbrance, charge, or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive evidence of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale.) After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first, of all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto.

17. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby.

18. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers, and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee, and Beneficiary hereunder, and the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the Packet Pg. 294
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) City of Redding Deed of Trust Page 8 of 9

costs, fees, and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law.

19. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, transferees, successors, and assigns. The term Beneficiary” shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural.

20. Trustor agrees to file with Beneficiary annually during July of each calendar year a written operational report which concerns the fiscal year ending on the immediately preceding June 30th and conforms to the standards set forth by the Participating Jurisdiction and 24 CFR Part 92 (with respect to the real property first described in this Deed of Trust) necessary or convenient for Beneficiary to make the annual reports.

21. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California (or successor statutes), Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished.

Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy.

22. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.

23. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, if said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if and notwithstanding that Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable.

24. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder.

Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address herein above set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing.

Packet Pg. 295
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

City of Redding Deed of Trust Page 9 of 9

25. The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land herein conveyed. The foregoing covenants shall run with the land.

THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth.

Dated: _________, 2025

Signature of Trustor(s):

PROJECT RESTORATION , a California nonprofit
Corporation

By: ________________________
Robert Cronic
Chief Executive Officer

Packet Pg. 296
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

EXHIBIT A

LEGAL DESCRIPTION
2171 Market Street, Redding, CA 96001

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF REDDING, COUNTY OF SHASTA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

LOTS 41, 42 AND 43 AS SHOWN ON THE MAP OF HONN'S ADDITION TO THE CITY OF REDDING, RECORDED IN THE OFFICE OF THE COUNTY RECORDER, RECORDED MAY 21, 1888 IN BOOK OF OLD PLATS AT PAGE 40, SHASTA COUNTY RECORDS.

EXCEPTING THEREFROM ALL THAT PORTION THEREOF DESCRIBED IN THE DEED TO THE STATE OF CALIFORNIA RECORDED OCTOBER 14, 1940 IN BOOK 171 OF OFFICIAL RECORDS AT PAGE 446.

APN: 102-510-019-000

Packet Pg. 297
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) Exhibit 5

RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY DEED TRUST

DO NOT DESTROY THIS NOTE: When paid, this note, with Deed of Trust securing same, must be surrendered to Trustee for cancellation before reconveyance will be made.

Amount: $1,500,000 _____________, 2025
Redding, California

FOR VALUE RECEIVED, PROJECT RESTORATION, a California Nonprofit Benefit Corporation, ("Borrower"), promises to pay to the order of the City of Redding ("Holder"), the principal sum of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000), pursuant to Section 4 below.

1. Borrower’s Obligation. This promissory note (“Note”) evidences Borrower’s obligation to pay Holder the principal amount of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000), for the funds loaned to Borrower by Holder to assist with the development of certain real property (“Project”) pursuant to a Rehabilitation Financing Agreement between Borrower and Holder dated ___________(“RFA” or “Agreement”).

2. Interest. The principal balance of this Note shall bear simple interest from the date of disbursement until repaid in full at one percent (1%) per annum; provided, however, if an event of default occurs, interest on the principal balance shall begin to accrue, as of the date of the disbursement and continuing until such time as the Loan funds are repaid in full, at the default rate of the lesser of: ten percent (10%), compounded annually; or the highest rate permitted by law. Interest calculations shall start 120 days from the issuance of Certificate of Occupancy.

3. Term and Repayment Requirements. The term of this Note (“Term”) shall commence with the date of this Note and shall expire twenty (20) years from said date, at which time the remaining balance of principal and interest shall be due and payable.

4. Terms of Payment.

a. All principal and interest payments are payable in lawful money of the United States.

b. All payments on this note shall be paid to the City of Redding at 777 Cypress Avenue, Redding, California, or to such other place as holder of this note may from time to time designate.

c. Annual payments shall be contingent upon the availability of residual receipt funds.

Within ninety (90) days after the end of each fiscal year during the term of the Note, Borrower shall provide Holder with a written year-end cash flow analysis and audited financial statement for the Project prepared by a certified public accountant. Any Residual Receipts realized from the operation of the Project, as shown by the annual audit, shall provide City with a written year-end cash flow analysis and audited financial statement for the Project prepared by a certified public accountant.

Any Residual Receipts realized from the operation of the Project as shown by the annual audit shall be paid to the City. Any such Residual Receipts received by the City shall be credited as a payment on the City Loan and shall be applied first to reducing the accrued interest, if any, on the loan, and subsequently, to reducing the principal.

Packet Pg. 298
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) City of Redding Residual Receipts Promissory Note Page 2 of 3 Residual receipts for purpose of this Note shall have the meaning as follows: Residual receipts may be thought of as all “surplus cash” remaining after all reasonable expenses of the Project have been paid or funds have been set aside for such payment including mortgage, funded reserve account and all reasonable obligations of the project. Reasonable obligations of the Project include: real estate taxes, property insurance, utilities, repairs and maintenance, payroll and benefits for employees, advertising and marketing, professional fees, general and administrative costs and management fees.

d. All payments on this Note shall be without expense to Holder, and Borrower agrees to pay all costs and expenses, including reconveyance fees and reasonable attorney’s fees of Holder, incurred in connection with the payment of this Note and the release of any security hereof.

e. Notwithstanding any other provision of this Note, or any instrument securing the obligations of Borrower under this Note, if, for any reason whatsoever, the payment of all sums by Borrower pursuant to the terms of this Note would result in the payment of interest which would exceed the amount that Holder may legally charge under the laws of the State of California, then the amount by which payments exceed the lawful interest rate shall automatically be deducted from the principal balance owing on this Note, so that in no event shall Borrower be obligated under the terms of this Note to pay any interest which would exceed the lawful rate.

f. The whole of this Note shall be nonrecourse to Borrower.

5. Default.

a. Any of the following shall constitute an event of default under this Note.

1) Any failure to pay, in full, any payment required under this Note when due. 2) Any failure in the performance by Borrower of any term, condition, provision, or covenant set forth in this Note.
3) The occurrence of any event of default under the DFA, the Deed of Trust, or the Declaration of Rent Restrictions, (as defined in the DFA).

b. Upon the occurrence of such an event of default and the expiration of the applicable cure period, the entire unpaid principal balance, together with all interest thereon, and together with all sums then payable under this Note and the Deed of Trust shall at the option of Holder become immediately due and payable upon written notice by Holder to Borrower without further demand.

c. The failure to exercise the remedy set forth in subsection 5b above or any other remedy provided by law upon the occurrence of one or more of the foregoing events of default shall not constitute a wavier of the right to exercise any remedy at any subsequent time in respect to the same or any other default. The acceptance by Holder hereof of any payment which is less that the total of all amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise any of the foregoing remedies or options at that time or at any subsequent time, or nullify any prior exercise of any such remedy or option, without the express consent of Holder, except as and to the extent otherwise provided by law.

6. No Assumption. This Note shall not be assumable by the successors and assigns of Borrower without the prior written consent of Holder.

Packet Pg. 299
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) City of Redding Residual Receipts Promissory Note Page 3 of 3

7. Security. This Note is secured by a Deed of Trust and Security Agreement (“Deed of Trust”), of even date herewith, wherein Borrower is the Trustor and Holder is the Beneficiary, covering the Property.

8. Waivers.

a. Borrower hereby waives diligence, presentment, protest and demand, and notice of protest, notice of demand, notice of dishonor and notice of nonpayment of this Note. Borrower expressly agrees that this Note or any payment hereunder may be extended from time to time, and that Holder may accept further security or release any security for this Note, all without in any way affecting the liability of Borrower.

b. No extension of time for payment of this Note or any installment hereof made by agreement by Holder with any person now or hereafter liable for payment of this note shall operate to release, discharge, modify, change or affect the original liability of Borrower under this Note, either in whole or in part.

c. The obligations of Borrower under this Note shall be absolute and Borrower waives any and all rights to offset, deduct, or withhold any payments or charges due under this Note for any reason whatsoever.

9. Miscellaneous Provisions.

a. Borrower promises to pay all costs and expenses, including reasonable attorney’s fees, incurred by Holder in the enforcement of the provisions of this Note, regardless of whether suit is filed to seek enforcement.

b. This Note may not be changed orally, but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.

c. This Note shall be governed by and construed in accordance with the laws of the State of California.

Borrower:

PROJECT RESTORATION, a California Nonprofit Benefit
Corporation

By: ______________________________________
Robert Cronic
Chief Executive Officer

Packet Pg. 300
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) Exhibit 6
RECORDING REQUESTED BY:

City of Redding as Successor Housing
Agency to the Redding Redevelopment Agency

CITY BUSINESS - NO FEE
Section 6103 of the Government Code
of the State of California

AND WHEN RECORDED MAIL TO:

City of Redding
777 Cypress Avenue
P.O. Box 496071
Redding, CA 96049-6071

DECLARATION OF RENT RESTRICTIONS

THIS DECLARATION OF RENT RESTRICTIONS (the “Declaration”) is entered into the ___th day of _______ 2025, by and between the CITY OF REDDING, a municipal corporation and general law city (“City”) and PROJECT RESTORATION, a California Nonprofit Corporation (“Owner”).

A. Owner is fee owner of record of that certain real property (“Real Property” or “Site”) located at 2171 Market Street in the City of Redding, County of Shasta, State of California, legally described in the attached Exhibit “A”. The Real Property is the subject of a Rehabilitation Financing Agreement dated July____, 2025, for the rehabilitation, construction, operation, management and maintenance of a motel conversion to income-eligible housing consisting of sixteen (16) units (“the Project”). The Affordable Units will be available for Low-Income Households.

B. The Real Property is located in the City of Redding and the development of the Property for affordable housing is in the best interest of the Owner and the City, and the health, safety, and welfare of the residents of the City of Redding.

C. To facilitate affordable rental housing, the Citywishes to secure rent restrictions on housing obligations as defined in California Health and Safety Code (HSC) Section 50053.

NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:

1. Number of Units. The Project on the Site consists of sixteen (16) housing units. The Owner agrees to make available, restrict occupancy to, and rent at an “Affordable Rent” to the “Low- Income Households” for the period of time described in Paragraph 2.

“Low-Income Household” shall mean a household earning no more than eighty percent (80%) of the Area Median Income adjusted for family size appropriate to the size of the rental unit applicable to Shasta County, as established and amended from time to time by HUD and as set forth in HSC Section 50053.

Packet Pg. 301
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

“Affordable Rent” shall have the meaning set forth in HSC Section 50053, as it exists as of the date of this Declaration, as further defined in Paragraph 3 of this Declaration.

“Affordability Period” shall mean a period commencing upon the date of issuance of a Certificate of Occupancy by the City of Redding Building Division for the Project and continuing for twenty (20) years.

2. Duration of Affordability of Affordable Units. The Affordable Units shall remain available for rent to and occupancy by Low-Income Households at an Affordable Rent throughout the Affordability Period.

Not withstanding any other provision of law, the covenants and restrictions contained herein shall run with the land for the duration of the Affordability Period and shall be enforceable, against Owner and/or its successors in interest, by the City, the community and/or others as allowed by law.

This Declaration of Rent restrictions shall survive termination of the Rehabilitation Financing Agreement and reconveyance of the Deed of Trust and shall not be subject to subordination, unless otherwise approved by the City Manager.

3. Determination of Affordable Rent for the Affordable Units. Each Affordable Unit shall be rented at a monthly rental amount ("Affordable Rent") in accordance with HSC Section 50053.

As of the approval of this Declaration, the following formulas represent maximum monthly Affordable Rents:

i) For the Low-Income Unit: One-twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of the area median income adjusted for family size appropriate to the unit applicable to Shasta County, as determined by the United States Department of Housing and Urban Development (the "Applicable Median Income"). In addition, for those lower income households with gross incomes that exceed 60 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household; and

4. Monitoring of the Affordable Units. Owner, its designee or successor shall prepare and submit annually the certification reports, as requested by the City, during the Affordability Period. The report shall identify each rental unit, the rental rate, and the income and family size of the occupants. The required income information shall be supplied by the tenant in the form of source documentation kept at the Real Property and shall be available for City review at the City’s request.

Remainder of this page is intentionally left blank

Packet Pg. 302
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) IN WITNESS WHEREOF, the Agency and Owner have signed this Declaration on the respective dates set forth below.

City of Redding, a municipal corporation

Date:___________________
By: Jack Munns, Mayor

By:

Robert Cronic
Its: Chief Executive Officer

****Please have Notary Public attach a separate Acknowledgement Form with signature and seal ****

ATTEST:
_________________________
By: Sharlene Tipton, City Clerk

APPROVED AS TO FORM:

_____________________________________
By: GRETCHEN STUHR, ASSISTANT CITY

ATTORNEY II

PROJECT RESTORATION, a California Nonprofit
Corporation:

Packet Pg. 303
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) Exhibit 7 - Guide to Property Owner

Required Provisions Description
Income Eligibility;
Annual Income Recertification;
Occupancy Standards

►Owner retains right to recertify the tenant’s income eligibility on an annual basis. The tenant’s failure to cooperate in the income recertification process constitutes a violation of the lease.

► Deliberately providing false information can result in termination of the lease.

► Owners must initially rent units to households with no less than the minimum required number of people. If the household is out of compliance at recertification, the owner may require the tenant household to move to the next available appropriately sized unit.

Rent
Restrictions / Rent Increases

► Rents are subject to the rent restrictions. Owner retains right to adjust rents, in accordance with the Rent Limits. Owner may operate a transitional housing program with proper permits Transitional housing does not collect rent but collects program fees.
► Terms for rent increases (i.e., how frequently rent can be increased; when increases can be made; how much written notice must tenant receive).

Lease Renewal

► Owner may not terminate the tenancy or refuse to renew the lease except for serious or repeated violation of the lease; for violation of applicable Federal, State, or local law; for completion of the tenancy for transitional housing; or for other good cause.

►Owner must give the tenant a written notice specifying the grounds for the action at least 30 days before the tenant must vacate the unit, or notice based on applicable state law.

Lease Term

► The lease term must be for at least one year, unless the tenant and the owner mutually agree upon a shorter term.

Annual Unit Inspection

► Owner retains the right to inspect, and to permit local, federal, or state monitoring staff to inspect assisted units during the affordability period. State or local law may establish how much notice must be given for inspections.

Packet Pg. 304
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

EXHIBIT 8
2171 Market Street

SCOPE OF WORK

I. GENERAL

The Project Site is specifically delineated on the Legal Description (Exhibit 1) and the Site Map (Exhibit 2) pursuant to this Rehabilitation Financing Agreement (RFA). The Developer agrees that the Project Site shall be rehabilitated in accordance with the provisions of this Agreement, referenced in Section 2.2 of the Agreement, and all drawings and related documents approved by the City of Redding pursuant hereto.

II. DEVELOPMENT

The Developer shall improve or cause to be improved, on the Project Site, The Market Street Manor Motel (Motel) all pursuant to this RFA, this Exhibit, the Final Project Plans and Specifications, and all conditions set forth in any City permit issued for the Project.

The Project shall include, but is not limited to, the following: 1) reconfiguring the existing Market Street Manor Motel into income-eligible apartment units that may be used in conjunction with a Transitional Housing Program as described in 24 CFR 578.37(a)(2). The improvements are further defined in the associated Project Final Plans and Specifications. The residential units will be completed to the satisfaction of the City of Redding Development Services Department and the Project Coordinator and will be “move-in” ready. The Owner shall commence and complete the Project by the respective times established in associated Schedule of Performance. The Owner may utilize the loan for acquisition, rehabilitation costs or refinancing costs as indicated within the Preliminary Project Budget (Exhibit 3).

The Scope of Work will specifically provide for the following types of improvements: site development and grading to provide access to all entrances and exits, new signage, updated landscaping and irrigation system, frontage landscape, street trees, lighting, ramps, curbs, accessible parking, trash enclosure, walkways, landings and loading zone, and the refurbishment of the historical pole sign. The exterior of the building will also be improved. New widows, fresh paint, possible new stucco trim around doors, possible new stucco skim coating over the existing exterior (or any other agreed upon exterior treatment as approved by the Development Services Department and in compliance with the SDP), upgrades to the guardrails, and a new outdoor stairwell with aluminum, wood grain colored architectural elements are all proposed with the project.

The existing motel will be remodeled into studio apartments that will consist of 35 rooms, of which is comprised of 1 manager’s unit and 34 studio apartments with a bedded living space, new kitchenettes, built-ins, closet, bathroom, new fixtures, flooring and fresh paint. The existing covered parking will be converted into a conditioned space consisting of two offices, five (5) accessible studio apartments, laundry facilities, and an additional accessible studio. There will be caretaker’s quarters in addition to the 34 rooms.

III. DEVELOPMENT STANDARDS
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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

The Project shall conform to all applicable state laws and regulations and to local zoning, applicable provisions of the Municipal Code of the City of Redding (the Municipal Code) and all applicable City development standards including but not limited to all standards and conditions contained in the Site Development Permit SDP-2022-02518 and Plan Check 2024-00694, and any and all permits issued for the Market Street Manor Motel.

The Developer shall apply for and obtain any permits required for the development including those permits and approvals required by the City of Redding Development Services Department or Transportation and Engineering Department.

IV. PROCUREMENT STANDARDS

The Owner shall coordinate the solicitation of bids with the City based upon the Final Plans. Owner and General Contractor shall endeavor to obtain a minimum of three bids per subcontractor and to the greatest extent possible, utilize local suppliers and subcontractors from within Shasta County.

The General Contractor will comply with the applicable procurement requirements per Council Policy 1502. The Project Manager will coordinate with the Owner and provide the required documents to complete the bid procurement process. The Project Coordinator will complete a cost analysis and ensure that the bids are cost reasonable and confirm to the proposed budget. The Project Coordinator’s cost analysis includes initial subcontract bids, contract modifications and change orders.

The final construction bid from the Contractor must have all non-construction categories, including, but not limited to, general conditions, profit and overhead and permits, clearly identified as separate line items.

Packet Pg. 306
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) Action Time Frame
City Council (CC) considers HHIP Program financing terms and conditions; and directs staff to forward RFA to Deputy City Manager for approvalAugust 4, 2025 Owner submits GL Insurance policy to City Risk Management Department Following CA approval and prior to Mayor Signature Owner executes RFA and all security documents Following CA approval and prior to City Council meeting Mayor executes RFA and related documents Following City Council meeting RFA and security documents are delivered to Escrow Agent Within 30 days following effective day of RFA Owner submits certificates of hazard insurance to City Risk Manager Prior to the Close of Escrow Escrow Agent to notify City and Owner of Escrow Closing Costs Within 10 Days prior to the Close of Escrow Close of Escrow. Escrow Agency records Declaration of Rent Restrictions and Deed Within 30 days of the opening of Escrow
Escrow Agent to issue and deliver Title Insurance to the City Close of Escrow Owner submits Final Project Plans to Project Coordinator Upon issuance of building permit Project Coordinator approves or rejects the Final Project Specifications 14 Days following Final Project Plans submittal Owner and/or General Contractor obtains Building Permits 30 Days following submittal of Final Project Budget to Project Manager, if not before
Owner issues Notice to Proceed to General Contractor 14 Days following issuance of building permits, or close of escrow
Owner and/or General Contractor commences improvements14 Days following Owner notification to General Contractor, if any, to proceed
Owner completes improvements 12 months following issuance of building permits Owner records Notice of Completion Upon substantial completion of improvements City will issue a Certificate of Completion 10 Days following issuance of Notice of Completion Project Lease-up 90 Days following issuance of Notice of Completion

SCHEDULE OF PERFORMANCE
EXHIBIT 9
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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) SDP-2022-02518/Cronic April 7, 2023
S
ITE DEVELOPMENT PERMIT SDP-2022-02518
A
pril 7, 2023
R
obert Cronic
PO Box 493528
Redding, CA 96049
A
t the meeting of April 5, 2023, the Board of Administrative Review considered and approved Site Development Permit SDP -2022-02518, granting approval to redevelop the existing hotel to be used for transitional/supportive housing, on property located at 2171 Market Street in the “DMUD-SP” Downtown Mixed- Use District, Specific Plan Overla y District, subject to compliance with all provisions of the Redding Municipal Code to be accomplished in the manner illustrated on the attached map and subject to the following conditions:

G
eneral Requirements

1. A
pproval is granted for the redevelopment of the existing motel located at 2171 Market Street to be used for transitional/supportive housing in substantial conformance with the site plan and elevation drawings approved by the Board of Administrative Review on April 5, 2023. Minor modifications may be approved by the Development Services Director; any substantial revisions will require either an amendment to this permit or a new site development permit.

2. T
he permitted use and improvements shall comply with the Use Permit/Site Development Standard Conditions of Approval effective May 24, 2011, for those conditions that are checked as applicable to the project (see attached).

3. P
arking is to be improved in accordance with Chapter 18.41, Off-Street Parking and Loading, of the Redding Municipal Code with a minimum of 18 spaces, including a minimum of one accessible space meeting the requirements of the California Building Code. Bicycle parking shall be provided in accordance with the California Green Building Standards Code.

4. A
t time of development, the existing pole sign shall be refurbished and the existing electrical service placed underground.

5. A
t time of development, the north and east elevations, along with the rooftop penthouse, shall be painted to match the approved south and west elevations.

Packet Pg. 308
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) SDP-2022-02518/Cronic April 7, 2023

Utilities, Grading and Drainage, Fire

6. Prior to issuance of a Grading/Building Permit, the developer shall submit improvement plans for approval by the City Engineer and/or Caltrans, as appropriate. Final grading, drainage and utility plans shall include the following:

a. A separate water meter for irrigation.

b. Backflow preventers on all water services.

c. A backflow system with exterior door access for the fire sprinkler system.

d. A cleanout at back of walk for the existing sewer lateral.

e. On-site storm drain system connection to the inlet near the south property line.

Streets & Circulation

7. Prior to development, the developer shall obtain all necessary encroachment permits from Caltrans and from the City of Redding Public Works Department for work in the public right-of-way. The developer is responsible for obtaining application forms, etc. from Caltrans.

8. Improvement plans for the project shall be submitted to the City Engineer for approval. Plans shall include the following:

a. A single site access with driveway approach per City of Redding Construction Standard No. 148.10 constructed in substantial conformance with the location shown on the approved site plan.

b. Construction of vertical curb, gutter, and sidewalk per CORCS No. 131.00 and No. 136.00.

c. Necessary tie-in asphalt concrete paving.

d. Any necessary signage, striping and pavement markings.

Redding Electric Utility

9. Applicant shall note that electric utility infrastructure will be required to be extended along the project frontage and possibly beyond. The extent of extensions will be determined during design for the project. Per the current REU Service Policy, Utility costs for undergrounding will be charged to the Developer and may extend up to 200’ beyond the project boundaries.

10. Applicant shall note that installation of street lights and associated infrastructure along public thoroughfares shall be furnished and installed by the Developer per REU Construction Standards in place at the time of project construction.

Packet Pg. 309
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) SDP-2022-02518/Cronic April 7, 2023

11. Electric utility primary infrastructure may be routed through the development to create a loop feed. Public Service Easements shall be granted and recorded to cover all of the electric utility infrastructure anytime it leaves the public right-of-way and transitions onto the development.

Landscape

12. Irrigated landscape shall be installed throughout the project in compliance with the requirements of Chapter 18.47, Landscape Standards, Chapter 18.41.100, Off-Street Parking:

Screening and Landscape , and Chapter 16.70, Water Efficient Landscape , of the Redding Municipal Code. These landscape regulations require, in part, that:

a. Landscape plans shall be prepared and submitted for approval by the Development Services Department prior to issuance of a building permit.

Placement of all aboveground or underground utility infrastructure located in landscape planters shall be shown on the landscape plan.

b. Street frontage landscape shall include a minimum of one 15 -gallon shade tree for every 30- feet of frontage. Any area between the back of sidewalk and the property line shall be incorporated into the adjacent street -side planter . The landscape planter shall include irrigated ground cover, shrubs, and broadleaf shade trees or tree groupings.

c. Shade trees shall be placed in and around the parking lot at a minimum ration of one tree for every four spaces.

d. Required trees shall be a minimum of 15 gallons in size.

e. All areas of the project site not intended for a specific use or purpose shall be landscaped.

f. Planters shall be protected from vehicles by 6 -inch-high concrete curbs or equivalent materials.

g. Groundcover shall be of live plant material. Gravel, colored rock, walk-on bark, and similar materials shall be used in combination with a living groundcover in all non-turf area as a mulch to control weeds and conserve or retain water until a living groundcover has achieved full coverage.

h. Planters not utilizing densely planted groundcover or turf shall include the use of high-quality-fabric weed barrier and appropriate mulch materials.

i. The landscape plan shall be approved by the Development Services Department prior to issuance of a building permit. Additionally, a Landscape Documentation Package shall be provided prior to building permit issuance in accordance with Redding Municipal Code Section 16.70, Water Efficient Landscape. Please note, a Landscape Certificate of Completion will be required prior to final occupancy.

Packet Pg. 310
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) SDP-2022-02518/Cronic April 7, 2023

j. All landscape improvements shall be completed prior to issuance of an occupancy permit.

Shasta County Environmental Health Department

The Shasta County Division of Environmental Health must review and approve plans for any food service inside the hotel prior to issuance of building permits. This includes any, breakfast bar preparation and/or serving area, and lobby with food/snacks.

This decision is subject to a 10-day public appeal period from the approval date indicated above.

If an appeal is not filed by 5:00 p.m. on Monday, April 17, 2023, the permit becomes effective on the date indicated on this permit. For more information of the Appeal Procedure, please refer to section 18.11.090 in the City of Redding Zoning Ordinance.

If you have any questions, please contact Assistant Planner, Danny Castro, at [email protected] at (530) 225-4471.

DATE SIGNED AND MAILED: April 7, 2023
Lily Toy, Planning Manager
Development Services
EFFECTIVE DATE: April 18, 2023

PREPARED BY: Jennifer Gannon

Copies to: Property Owner
Applicant, if not property owner
Representative

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Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement)

USE PERMIT/SITE DEVELOPMENT PERMIT STANDARD CONDITIONS OF APPROVAL EFFECTIVE MAY 24, 2011

THE MANOR
SDP-2022-02518

☒ A CHECK MARK IN THE BOX NEXT TO A CONDITION INDICATES THAT THE CONDITION APPLIES TO THE SUBJECT PERMIT.

General Requirements

☒ 1. In accordance with Chapter 18.11.100 of the Zoning Ordinance, the entitlement authorized by approval of this permit shall automatically expire 3 years from the date of approval, without further notice or action by the City, unless any 1 of the following occurs:

a. A building permit has been issued and substantial construction has occurred upon reliance of the entitlement as determined by the Development Services Director.

b. The use of the property specifically authorized by the entitlement has been established or commenced as determined by the Development Services Director.

c. Approval of the entitlement has been extended for 1 year by the Development Services Director.

☒ 2. The requirements of the California Buildings Standards Code and the California Fire Code are to be met. The project proponent is responsible for contacting the offices of the Building Division and Fire Department to verify compliance or the need to obtain permits.

Site Development

☒ 3. Site development and grading shal l be designed to provide access to all entrances and exterior ground-floor exits and to normal paths of travel and shall incorporate pedestrian ramps, curb ramps, etc . Access shall be provided within the boundary of the site from public transportation stops, accessible parking spaces, passenger loading zones if provided, and public streets or sidewalks. When more than 1 building or facility is located on a site, accessible routes of travel shall be provided between buildings and accessible site facilities, accessible element, and accessible spaces that are on the same site. The accessible route of travel shall be the most practical direct route between accessible building entrances, accessible site facilities, and the accessible entrance to the site.

☒ 4. Trash and recycling enclosure(s) shall be provided as depicted on the approved site plan.

The enclosure shall be located and constructed in accordance with Section 18.40.120 of the Redding Municipal Code.

Packet Pg. 312
Attachment: Rehabilitation Financing Agreement (9.2(b)--Market Street Manor Rehabilitation Financing Agreement) Use Permit/Site Development Permit Standard Conditions of Approval