Redding City Council
August 19, 2025

Agenda
Regular Meeting
Redding City Council
Council Chambers
777 Cypress Avenue, Redding, CA
August 19, 2025
6:00 PM

1. CALL TO ORDER - MAYOR JACK MUNNS
A. Pledge of Allegiance
B. Invocation – Pastor Janet Chapman, First Christian Church of Redding C. Roll Call

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 Calendar, 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.

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.

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 19, 2025

4(a). Approve City Council Minutes: Special Meeting of August 4, 2025; and Regular Meeting of August 5, 2025.
4(b). Accept City of Redding Payroll Register Nos. 9 through 26 for the pay periods beginning October 13, 2024, through June 21, 2025.
4(c). Accept City of Redding Accounts Payable Register No. 1; and Payroll Register Nos. 1 and 2.
4(d). Adopt 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 Regulations) by adding RMC Chapter 6.13 (Tobacco Retailing) relating to the regulation of tobacco retailers.

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.

4.1(b). Approve request to set a Public Hearing for Tuesday, September 2, 2025, at 6:00 p.m. in the City Council Chambers located at 777 Cypress Avenue, Redding, California, regarding the adoption of a tobacco retail license fee for the sale of tobacco and tobacco products within the City of Redding.

4.5(a). Authorize and approve the following modifications relative to the previously awarded Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers to WEG Transformers USA, LLC (WEG):
(1) Approve amending the original first-year award amount under Bid Schedule No. 5331 from a pre-tax total of $1,072,779 to a revised not-toexceed amount of $2,500,000, based on evaluated pricing and increased procurement needs during the initial term;
(2) Affirm the issuance of Purchase Order No. 115316 (Oracle Reference No. PUR001624) in the amount of $1,176,118.52, including applicable taxes, for transformer purchases made under the first-year contract authority; and
(3) Affirm that future price adjustments remain subject to the City Manager’s authority under the originally approved award terms and WEG’s long-term customer pricing policy, including escalation due to market conditions.

4.5(b). Authorize and approve the following actions related to obtaining a license agreement with AVEVA Software, LLC:
(1) Approve a sole-source licensing agreement with AVEVA Software, LLC for PI System software totaling $413,920.80 for three years; and (2) Authorize the City Manager, or designee, to sign and execute the license agreement, general terms and conditions, and any additional documents related to the agreement for processing orders for the City of Redding Electric Utility.

Redding City Council August 19, 2025

4.5(c). Approve the sole-source procurement of hardware, software, and licenses, in an amount not to exceed $250,000, for upgrading the physical access control systems at City of Redding Electric Utility substations and find that the name AMAG Technologies in the project specifications for Public Works projects, as pursuant to Public Contract Code Section 3400(c)(2), to match existing systems already in use by the City of Redding.

4.5(d). Authorize and approve the following relative to Bid Schedule No. 5583 – Single-Phase, Pad-Mounted Distribution Transformers for the City of Redding Electric Utility:
(1) Approve staff’s recommendation to reject all bids received for Bid Schedule No. 5583;
(2) Authorize the City Manager, or designee, to execute the Goods Purchase Agreement (Agreement) with Anixter Inc., for a total delivered cost, including tax, of $207,416.13;
(3) Authorize the City Manager, or designee, to amend the Agreement annually with Anixter through June 30, 2029, if mutually agreeable, with all prices adjusted in direct proportion to the Producer Price Index and all other terms and conditions remaining the same; and
(4) Authorize the City Manager, or designee, to approve an additional $95,000 per fiscal year as a contingency to account for unforeseen costs, including but not limited to tariffs, freight increases, and price increases due to supply chain constraints.

4.6(a). Approve the Second Amendment to Caldwell Recreation Center Lease (C-7389) with Turtle Bay Exploration Park for storage of artwork and artifacts at the Recreation Center with a term expiring January 31, 2026.

4.6(b). Adopt Resolution approving and adopting the 6th Amendment to City Budget Resolution No. 2025-049 appropriating $28,010 of the Redding Sports Park net revenues to its Operations and Maintenance Budget.

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;
(2) Approve increases to the project budget in the amount of $650,000: and (3) Pursuant to Public Contract Code Section 22050(c)(1), make a determination by a four-fifths vote that there is a need to continue the emergency work.

Redding City Council August 19, 2025

4.11(b). Authorize and approve the following actions relative to Bid Negotiation No. 5616, Enterprise Anderson Groundwater Sustainability Agency Monitoring Wells:
(1) Award to Penecore Drilling, Inc. in the amount of $390,792; (2) Approve an additional $45,000 to cover the cost of administration and inspection fees;
(3) Approve $360,000 for project development costs;
(4) Approve $39,000 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 $50,000; and
(6) Find that the Project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15304 – Minor Alterations to land and Section 15306- Information collection.

4.11(c). Authorize the following actions relative to Bid Schedule No. 5611, On-Call Sidewalk Repair Project 2025:
(1) Award to Concentric Concrete, Inc. in the amount of $240,895; (2) Approve an additional $38,000 to cover the cost of administration and inspection fees;
(3) Approve $40,000 to provide construction contingency funding; (4) Approve $10,000 for project development;
(5) If mutually agreeable, with all prices, terms, and conditions remaining the same, the contract may be renewed for two additional one-year periods with the same contract amount and contingency per year.

Authorize the City Manager, or designee, to execute contract amendments to renew the contract for up to two years; and (6) Find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, per Section 15301(c & d) – Existing Facilities.

4.11(d). Authorize the Purchasing Officer to extend the current contract with Ed Staub & Sons Petroleum, Inc., for cardlock fuel purchases, with all prices, terms and conditions remaining the same through September 30, 2025.

4.11(e). Authorize and approve the following actions related to the East Street Pedestrian Crossings Enhancements located at the East Street/Butte Street and East Street/Yuba Street Intersections:
(1) Authorize the City Engineer to execute the Transportation Infrastructure Agreement with Prime Healthcare Services – Shasta, LLC.; (2) Adopt Resolution approving and adopting the 5th Amendment to City Budget Resolution No. 2025-049 appropriating funds in the amount $16,000 for Fiscal Year 2025-26;
(3) Authorize the City Manager, or designee, to approve amendments; and (4) Find that the action is categorically exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 – Existing Facilities.

Redding City Council August 19, 2025

4.11(f). Authorize and approve the following:
(1) Approve a three-year, Service Agreement with Siskiyou Opportunity Center (C-9996) in the amount of $1,315,694.40 per year, beginning July 1, 2025, for recyclables sorting services for the City of Redding Solid Waste Department;
(2) Authorize the City Manager, or designee, to execute the Service Agreement;
(3) Adopt Resolution approving and adopting the 7th Amendment to City Budget Resolution No. 2025-049 appropriating $115,700 to cover the additional cost of the Siskiyou Opportunity Center (C-9996) for fiscal year 2025-26; and
(4) Find that the action is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities.

4.12(a). Approve designation of Council Member Tenessa Audette as the Voting Delegate and Council Member Dr. Paul Dhanuka as the Voting Delegate - Alternate to represent the City of Redding at the League of California Cities Annual Conference to be held October 8-10, 2025, in Long Beach, California.

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

6. PUBLIC HEARINGS
A court challenge to action taken by the City Council on any project or decision may be limited to only those issues raised during the public hearing or in written correspondence delivered to the City Council during, or prior to, the public hearing.

Assistant City Manager

6.1. Public Hearing to consider adoption of a new Ordinance amending Redding Municipal Code Title 6 – Business Taxes, Licenses and Regulations – by adding Chapter 6.42 – Entertainment Zones
Recommendation:

Conduct a Public Hearing and, upon conclusion, authorize and approve the following actions relative to Entertainment Zones in the City of Redding:
(1) Offer Ordinance amending Redding Municipal Code Title 6 (Business Taxes, Licenses and Regulations) by adding Chapter 6.42 (Entertainment Zones) for first reading by title only, and waive the full reading; (2) Authorize the City Attorney to prepare and the City Clerk to publish a summary of the ordinance;
(3) Adopt Resolution amending Title 6 – Business Taxes, Licenses and Regulations by adding Chapter 6.42 – Entertainment Zones to the Redding Municipal Code; and
(4) Find that the adoption of the ordinance and resolution are 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 the ordinance and resolution will have no foreseeable direct or indirect physical change in the environment.

Redding City Council August 19, 2025

9. REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES
Community Services

9.6(c). Oral report providing the 2025 update for the Community Services - Parks Division.

Recommendation:

Informational item only.

9.6(d). Consider financial assistance options for Advance Redding regarding the Civic Auditorium located at 700 Auditorium Drive.

Recommendation:

Accept Report and provide direction regarding the following options related to the Redding Civic Auditorium (C-5682):
(1) Allocation of approximately $675,000 through a grant or loan to Advance Redding for the purpose of assisting in covering operational expenses; (2) Deferment of lease payments of $5,000 per month until January 2026; and (3) Assign two City Council Members to work with staff and Advance Redding on development of a new contract structure to ensure the successful, future operations of the Civic Auditorium.

Fire

9.8(b). Consider update to Redding Municipal Code Title 6 Chapter 6.18 - Emergency Medical Service First Responder Fee and provide direction.

Recommendation:

Accept report regarding Redding Municipal Code Title 6, Chapter 6.18 (Emergency Medical Service First Responder Fee); and provide direction regarding the following:
(1) Should the ordinance be modified;
(2) Should the ordinance be repealed;
(3) Should the fee be revisited;
(4) If the ordinance is modified, should the fee be temporarily suspended until the new ordinance is adopted; and/or
(5) If the fee is suspended, should the current billings be rescinded.

Personnel

9.15(a). Consider Resolution approving exception to the California Public Employees' Retirement System 180-day wait period with regard to the re-hiring of retired Legal Assistant, Suzanne Lovitt.

Recommendation:

Authorize and approve the following:
(1) Adopt Resolution approving a 180-day wait period exception and single interim appointment of Suzanne Lovitt as Legal Assistant for the City of Redding pursuant to Government Code sections 7522.56 and 21224, effective August 20, 2025, for up to 960 hours; and
(2) Authorize the City Manager to execute the necessary hiring documentation.

Redding City Council August 19, 2025

11. COUNCIL TRAVEL REPORT(S)
City Council Member attendance at conference/meetings reimbursed at City expense. {Requirement of Assembly Bill 1234}
[A-050-060]
Information Only

12. SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS

FOR FUTURE CITY COUNCIL MEETINGS

13. ADJOURNMENT
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, 3rd Floor, City Hall, 777 Cypress Avenue, Redding, California.

City Council Meetings will be televised live on Shasta Community Access Channels via Charter/Spectrum Cable channel 181, and will be rerun on Thursday at 12:30 p.m. during the week in which the meeting is held. Additionally, the meeting can be viewed online at the following: https://www.shastaartscouncil.org/scactv; and the City’s YouTube Channel https://www.youtube.com/cityofredding. Video of the City Council meetings can also be viewed on the City’s web site at http://www.cityofredding.gov/. Open the Services tab, and select City Council Videos.

In compliance with Title II of the Americans with Disabilities Act, the City of Redding will make available to persons with disabilities modifications or accommodations including auxiliary aids or services necessary to participate in public meetings. A person needing assistance should contact the Redding City Clerk by telephone at (530) 225-4447 or in person, or by mail at 777 Cypress Avenue, 3rd 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
Approve City Council Minutes: Special Meeting of August 4, 2025; and Regular Meeting of August 5, 2025.

Attachments
^Unofficial Minutes - Special Meeting of August 4, 2025 ^Unofficial Minutes - Regular Meeting of August 5, 2025 MEETING DATE: August 19, 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. 8
84 08/04/2025
Unofficial Minutes Redding City Council, Special Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
August 4, 2025, 5:15 PM
The meeting was called to order at 5:20 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 Council Member Audette.

The Invocation was provided by Jen McCloskey, Redding Police and Fire Departments’ Chaplain.

CLOSED SESSION
At the hour of 5:30 p.m., Mayor Munns opened the Special Meeting and announced that the Council would adjourn to Closed Session.

At the hour of 6:16 p.m., Mayor Munns reconvened the Special Meeting to Open Session and reported that in reference to:
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
Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.
2B. 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
Steve Kohn and Shasta County Sheriff Michael Johnson opined their support.

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

PRESENTATIONS
Julie Dyar, Executive Director of Advanced Redding, highlighted the Report to City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference, regarding the state of the Redding Civic Auditorium, its 55-year anniversary, and the many updates/improvements needed.

Eric Hyatt spoke in support.

Packet Pg. 9
Attachment: ^Unofficial Minutes - Special Meeting of August 4, 2025 (4(a)--Approve City Council Minutes) 85 08/04/2025
The City Council took no formal action on this informational item.

PUBLIC COMMENT
Robert Sid spoke regarding an Open House.

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 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.

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 through Municipal Maintenance Equipment (MME), using Sourcewell contract pricing, 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 No. 2025-058, a resolution of the City Council of the City of Redding, 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 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.

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 Years 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. 5357, City Hall Fire Alarm Replacement Project, as outlined below for additional project costs: (1) adopt Resolution No. 2025-059, a resolution of the City Council of the City of Redding; (2) approving and adopting the 4th Amendment to City Budget Resolution No. 2025-049 appropriating an additional $220,000; (3) increase of $83,000 to the construction management budget, bringing the construction management total to $112,000; and (4) increase of $137,000 to the construction contingency budget, bringing the construction contingency budget to $152,000.

Packet Pg. 10
Attachment: ^Unofficial Minutes - Special Meeting of August 4, 2025 (4(a)--Approve City Council Minutes) 86 08/04/2025

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. 5614 (Job No. 9944), Redding 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 increases 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.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Dhanuka, 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. 2025-058 and 2025-059 are on file in the Office of the City Clerk.

REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES

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

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

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Munns, to 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.

The Vote:

AYES: Council Members – Audette, Littau, Resner, and Munns NOES: Council Members – None
ABSTAIN: Council Members – Dhanuka
ABSENT: Council Members – None
Packet Pg. 11
Attachment: ^Unofficial Minutes - Special Meeting of August 4, 2025 (4(a)--Approve City Council Minutes) 87 08/04/2025

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

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.

A MOTION WAS MADE by Council Member Dhanuka, seconded by Council Member Resner, to 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.

The Vote: Unanimous Ayes.

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

Community Development Manager Nicole Smith provided an overview of the Report to City Council (staff report), incorporated herein by reference.

Council Member Dhanuka expressed his concern with the City of Redding being in the third position and not the second in the loan structure.

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Littau, to (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 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).

The Vote: Unanimous Ayes.

SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS FOR

FUTURE CITY COUNCIL MEETINGS
At Mayor Munn’s suggestion, a consensus of the Council directed staff to return to Council at a future meeting with a report regarding the Redding Civic Auditorium that will include: (1) options for the $675,000 requested by Advance Redding; and (2) a request for recommendations regarding next steps relative to Advance Redding’s Lease Agreement with the City of Redding for the Redding Civic Auditorium.

ADJOURNMENT
There being no further business at the hour of 7:07 p.m., Mayor Munns declared the meeting adjourned.

APPROVED:
______________________________
Jack Munns, Mayor
ATTEST:
____________________________
Sharlene Tipton, City Clerk
Packet Pg. 12
Attachment: ^Unofficial Minutes - Special Meeting of August 4, 2025 (4(a)--Approve City Council Minutes) 88 8/5/2025
Unofficial Minutes Redding City Council, Regular Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
August 5, 2025, 6:00 PM
The meeting was called to order at 6:01 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 Mayor Munns

PUBLIC COMMENT
Steve Kohn opined his opposition to Council Member Audette’s media interview opposing a potential sales tax increase initiative and comments made regarding City staff salaries.

Tessa Borquez, Upstate California Film Commission, provided Council with an update regarding recent events, and provided copies of its Quarterly Report and Annual Report for Year 2024-25, both incorporated herein by reference.

Nick Gardner expressed his opposition to high employee salaries, homelessness, poor condition of streets, run down sports park, updates needed for Benton Airpark, and opined that he will fight the proposed sales tax.

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). Adopt Ordinance No. 2680, an ordinance of the City Council of the City of Redding, adopting an amendment to the City of Redding Zoning Map relating to the Rezoning of the Zinco Subdivision (Assessor’s Parcel No. (APN) 114-050-005 & APN 114-050-006) consisting of 4.42 acres located at 3150 and 3250 Jordan Lane in the City of Redding (RZ2024-00156).

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 fourfifths vote that there is a need to continue the emergency.

In response to Council Member Audette, City Manager Tippin noted that there has not been formal notification received yet that the governor has declared an emergency for Shasta County, however, the work being done to repair the storm drain at the South Bonnyview Boat Ramp as well as at Nur Pon and other parks, will receive some type of reimbursement, possibly up to 50 percent. He also noted that the river level is currently really high, and is delaying the repairs at Nur Pon. Staff are attempting to find out from the Bureau of Reclamation why the levels are so high at this time, so that work can be scheduled after it dries out.

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 fourfifths vote that there is a need to continue the emergency work.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Dhanuka, 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
Packet Pg. 13
Attachment: ^Unofficial Minutes - Regular Meeting of August 5, 2025 (4(a)--Approve City Council Minutes) 89 8/5/2025
Ordinance No. 2680 is on file in the Office of the City Clerk.

REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES

9.12(a).Two Resolutions - Certificate of Sufficiency of Initiative Petition and calling for placement of the Redding Public Safety, Infrastructure, and Parks Transactions and Use Tax Initiative Measure on the ballot in November 2025.

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

In response to Council Member Audette, City Attorney Curtis advised that staff reports were created prior to his confidential email being sent to City Council that provided information regarding an additional date for an election. He confirmed that the alternate action the Council could take is to place the ballot measure on the City of Redding’s next General Municipal Election to be held on November 3, 2026.

A discussion amongst the Council ensued.

In response to Council Member Resner, City Manager Tippin confirmed that the proponents of the sales tax measure have expressed their preference for the election date to be Tuesday, November 4, 2025.

Council Member Audette made an alternative motion to place the ballot measure on the next general election. The motion failed due to a lack of a second.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Dhanuka, to: (1) adopt Resolution No. 2025-060, a resolution of the City Council of the City of Redding, to accept the City Clerk's Certificate of the Sufficiency of the Petition relating to the sufficiency of the number of qualified signatures on an Initiative Measure entitled as an "Initiative Measure For Adoption Of A One Percent (1%) Transaction And Use (“Sales”) Tax For Specified City Services”; and (2) adopt Resolution No. 2025-061, a resolution of the City Council of the City of Redding, calling for a special election to be held on Tuesday, November 4, 2025, in the City of Redding, and to place the Initiative Measure on the ballot.

The Vote:

AYES: Council Members – Dhanuka, Littau, Resner, and Munns NOES: Council Members – Audette
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution Nos. 2025-060 and 2025-061 are on file in the Office of the City Clerk.

SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS FOR

FUTURE CITY COUNCIL MEETINGS
At Council Member Dhanuka’s suggestion, a consensus of the Council directed staff to return to Council for consideration at a future Council Meeting with data and potential alternate options to the previously approved Redding Fire Department Lift Assist Fee.

ADJOURNMENT
There being no further business at the hour of 6:32 p.m., Mayor Munns declared the meeting adjourned.

APPROVED:
______________________________
Jack Munns, Mayor
ATTEST:
____________________________
Sharlene Tipton, City Clerk
Packet Pg. 14
Attachment: ^Unofficial Minutes - Regular Meeting of August 5, 2025 (4(a)--Approve City Council Minutes)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept City of Redding Payroll Register Nos. 9 through 26 for the pay periods beginning October 13, 2024, through June 21, 2025.

Fiscal Impact
There is no fiscal impact to accepting the register.

Alternative Action
The City Council (Council) could choose to not accept the register and provide alternate direction to staff.

Background/Analysis
The new payroll system went live for the pay date of October 31, 2024. The register generated from Oracle included information that is personally identifiable and should not be included in public facing staff reports. Staff began working with our implementation vendor to correct this and create a more suitable register. Implementations of financial and payroll system of this magnitude comes with a multitude of additional efforts and learning for staff and the implementation team.

The implementation team is still working on the final report but in the interim staff has found a way to take the necessary information and format it into a temporary version of the report for public consumption. In the coming months, Council may notice slight changes to the look and feel of the report as the final version is completed.

The old payroll register included deductions on the register but with the new system deductions are now passed over to Accounts Payable for payment and included on the Accounts Payable register.

MEETING DATE: August 19, 2025
ITEM NO. 4(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4(b)--City of Redding Payroll Register.

Greg Robinett, Director of
Finance/City Treasurer
Packet Pg. 15
Report to Redding City Council August 8, 2025
Re: 4(b)--Payroll Register Nos. 9 through 26 Page 2
Attached are the following Payroll Registers:

Payroll:
(1) Register No. 9 for the period October 13, 2024 – October 26, 2024, in the amount of $2,904,206.28
(2) Register No. 10 for the period October 27, 2024 – November 9, 2024, in the amount of $2,911,284.90
(3) Register No. 11 for the period November 10, 2024 – November 23, 2024, in the amount of $3,335,147.06
(4) Register No. 12 for the period November 24, 2024 – December 7, 2024, in the amount of $3,114,558.45
(5) Register No. 13 for the period December 8, 2024 – December 21, 2024, in the amount of $2,881,660.32
(6) Register No. 14 for the period December 22, 2024 – January 4, 2025, in the amount of $3,081,398.97
(7) Register No. 15 for the period January 5, 2025 – January 18, 2025, in the amount of $2,987,040.34
(8) Register No. 16 for the period January 19, 2025 – February 1, 2025, in the amount of $2,984,025.96
(9) Register No. 17 for the period February 2, 2025 – February 15, 2025, in the amount of $2,875,776.31
(10) Register No. 18 for the period February 16, 2025 – March 1, 2025, in the amount of $2,938,543.43
(11) Register No. 19 for the period March 2, 2025 – March 15, 2025, in the amount of $2,871,937.89
(12) Register No. 20 for the period March 16, 2025 – March 29, 2025, in the amount of $2,891,506.00
(13) Register No. 21 for the period March 30, 2025 – April 12, 2025, in the amount of $2,915,813.50
(14) Register No. 22 for the period April 13, 2025 – April 26, 2025, in the amount of $2,995,903.31
(15) Register No. 23 for the period April 27, 2025 – May 10, 2025, in the amount of $3,043,735.55
(16) Register No. 24 for the period May 11, 2025 – May 24, 2025, in the amount of $2,992,496.66
(17) Register No. 25 for the period May 25, 2025 – June 7, 2025, in the amount of $3,028,492.96
(18) Register No. 26 for the period June 8, 2025 – June 21, 2025, in the amount of $3,058,411.57.

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

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

Attachments
Payroll Register Nos. 9 through 26
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Attachment: Payroll Register Nos. 9 through 26 (4(b)--Payroll Register Nos. 9 through 26) Packet Pg. 18
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Attachment: Payroll Register Nos. 9 through 26 (4(b)--Payroll Register Nos. 9 through 26) Packet Pg. 210
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Attachment: Payroll Register Nos. 9 through 26 (4(b)--Payroll Register Nos. 9 through 26) Packet Pg. 224
Attachment: Payroll Register Nos. 9 through 26 (4(b)--Payroll Register Nos. 9 through 26) Packet Pg. 225
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Attachment: Payroll Register Nos. 9 through 26 (4(b)--Payroll Register Nos. 9 through 26) Packet Pg. 334
Attachment: Payroll Register Nos. 9 through 26 (4(b)--Payroll Register Nos. 9 through 26) Packet Pg. 335
Attachment: Payroll Register Nos. 9 through 26 (4(b)--Payroll Register Nos. 9 through 26) Packet Pg. 336
Attachment: Payroll Register Nos. 9 through 26 (4(b)--Payroll Register Nos. 9 through 26)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept City of Redding Accounts Payable Register No. 1; and Payroll Register Nos. 1 and 2.

Fiscal Impact
There is no fiscal impact to accepting the registers.

Alternative Action
The City Council could choose to not accept the registers and provide alternate direction to staff.

Background/Analysis
Attached are the Accounts Payable and Payroll Registers as follows:

Accounts Payable:
(1) Register No. 1 for the period July 1, 2025 – July 31, 2024, in the amount of $58,846,063.99.

Payroll:
(1) Register No. 1 for the period June 22, 2025 – July 5, 2025, in the amount of $3,084,687.63; and
(2) Register No. 2 for the period July 6, 2025 – July 19, 2025, in the amount of $3,374,189.08.

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

MEETING DATE: August 19, 2025
ITEM NO. 4(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4(c)--City of Redding Accounts Payable and Payroll Registers.

Greg Robinett, Director of
Finance/City Treasurer
Packet Pg. 337
Report to Redding City Council August 8, 2025
Re: 4(c)--Accounts Payable and Payroll Registers Page 2 Council Priority/City Manager Goals
• This agenda item is a routine operational item.

Attachments
Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 Packet Pg. 338
Packet Pg. 339
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 340
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 341
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 342
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 343
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 344
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 345
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 346
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 347
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 348
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 349
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 350
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 351
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 352
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 353
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 354
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 355
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 356
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 357
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 358
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 359
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 360
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 361
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 362
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 363
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 364
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 365
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 366
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 367
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 368
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 369
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 370
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 371
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 372
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 373
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 374
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 375
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 376
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 377
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 378
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 379
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 380
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 381
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 382
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 383
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 384
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 385
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 386
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 387
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 388
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 389
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 390
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 391
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 392
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 393
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers) Packet Pg. 394
Attachment: Accounts Payable Register No. 1; and Payroll Register Nos. 1 & 2 (4(c)--Accounts Payable and Payroll Registers)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Adopt 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 Regulations) by adding RMC Chapter 6.13 (Tobacco Retailing) relating to the regulation of tobacco retailers.

Attachments
^Ordinance No. 2681 Title 6 Tobacco Retail License
MEETING DATE: August 19, 2025
ITEM NO. 4(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4(d)--Adopt Ordinance No. 2681 Title 6 Tobacco Retail License Sharlene Tipton, City Clerk
Packet Pg. 395
First reading done: 07/15/2025 (4-1; CM Audette - No) BT For adoption on: 08/19/2025
CC agenda item # 4(d)
ORDINANCE NO. 2681
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 6
(BUSINESS TAXES, LICENSES AND REGULATIONS) OF THE
REDDING MUNICIPAL CODE BY ADDING CHAPTER 6.13 (TOBACCO

RETAILING) RELATING TO THE REGULATION OF TOBACCO

RETAILERS
WHEREAS:

A. The City Council finds that a local licensing system for tobacco retailers is appropriate to ensure that retailers comply with tobacco control laws and business standards to protect the health, safety, and welfare of our residents; and
B. Approximately 480,000 people die in the United States from smoking-related diseases and exposure to secondhand smoke every year, making tobacco use the nation’s leading cause of preventable death;
i
and
C. The World Health Organization (WHO) estimates that tobacco kills 8 million people and causes over 1.4 trillion dollars in economic damage each year; ii and
D. 5.6 million of today’s Americans who are younger than 18 years of age are projected to die prematurely from a smoking-related illness;
i
and
E. Tobacco use is the number one cause of preventable death in Californiaiii and continues to be an urgent public health issue, as evidenced by the following:
• 40,000 California adults die from their own smoking annually;iv • More than 25% of all adult cancer deaths in California are attributable to smoking;v • Smoking costs California $13.29 billion in annual health care expenses, $3.58 billion in Medicaid costs caused by smoking, and $10.35 billion in smoking-caused productivity losses;vi
• Tobacco use can cause disease in nearly all of the organs of the body and is responsible for 87% of lung cancer deaths, 32% of coronary heart disease deaths, and 79% of all cases of chronic obstructive pulmonary disease in the United States;ii and F. State law prohibits the sale or furnishing of cigarettes, tobacco products and smoking paraphernalia to persons under twenty-one (21) years of age; and G. State law requires that tobacco retailers check the identification of tobacco purchasers who reasonably appear to be under 21 years of age (California Business & Professions Code § 22956) and provides procedures for using persons under 21 years of age to conduct onsite compliance checks of tobacco retailers (California Business & Professions Code § 22952); and Packet Pg. 396 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) H. Despite the state’s efforts to limit youth access to tobacco, youth are still able to access tobacco products, as evidenced by the following:
• In California, research indicates over 67% of current and former adult smokers started by the age of 18 and almost 100% start by age 26;vii
• In California, from 2017 to 2018, approximately 13% of high school students reported using tobacco;viii
• Unless smoking rates decline, an estimated 441,000 of all California youth who are alive today will die prematurely from smoking-related diseases;i • In 2017, 22.8% of high school students in California had tried cigarette smoking;ix • Between 2014 and 2018, electronic smoking device use among California youth increased from 14.1% to 46.2%;
x
and
I. In 2023, 41.2% of surveyed Shasta County high school students reported having previously used tobacco, the highest level of tobacco use recorded in the state; xi and
J. In 2023, 31.6% of surveyed Shasta County high school students stated that they vape to relax or relieve stress and anxiety;
xi and
K. In 2023, 16.8% of surveyed Shasta County high school students reported currently using tobacco products (including vapes, cigarettes, cigars, little cigars and cigarillos, smokeless tobacco, heated tobacco products, hookah and nicotine pouches); xi and
L. In 2023, Shasta County had the highest level of current tobacco use by high school students in the State;
xi and
M. In 2023, 63.2% of currently vaping high school students reported that they believed it was easy to obtain vapes and cigarettes from stores;
xi and
N. In 2023, 32.6% of surveyed Shasta County students reported buying vapes, pods, or e-liquid directly from a tobacco or smoke shop;
xi and
O. In 2023, 23.4% of surveyed Shasta County students under the age of 18 reported asking someone to buy them a vape, pod or e-liquid;
xi and
P. Both youth and adult tobacco users are more likely to also use cannabis; xiiˑxiii and
Q. State law requires that tobacco retailers post a conspicuous notice at each point of sale stating that selling tobacco products to anyone under 21 years of age is illegal (California Business & Professions Code § 22952, California Penal Code § 308); and R. The tobacco industry encourages youth and young adult tobacco initiation through predatory targeting,xiv as evidenced by the following:
• Tobacco companies target young adults ages 18 to 24 to increase their frequency of tobacco use and encourage their transition to habitual users;xv Packet Pg. 397 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) • Tobacco industry documents state that if “a man has never smoked by the age of 18, the odds are three-to-one he never will. By age 24, the odds are twenty-to-one;”xvi • The tobacco industry spends an estimated $496 million annually to market tobacco products to California residents;
vi and
S. State law prohibits the sale or display of cigarettes through a self-service display and prohibits public access to cigarettes without the assistance of a clerk (California Business & Professions Code § 22962); and
T. State law prohibits the sale of "bidis" (a type of hand-rolled filterless cigarette) except at those businesses that prohibit the presence of minors (California Penal Code § 308.1); and U. State law prohibits the manufacture, distribution, or sale of cigarettes in packages of less than 20 and prohibits the manufacture, distribution, or sale of "roll-your-own" tobacco in packages containing less than six-tenths of an ounce of tobacco (California Penal Code § 308.3); and V. State law prohibits public school students from smoking or using tobacco products while on campus, while attending school-sponsored activities, or while under the supervision or control of school district employees (California Education Code § 48901(a)); and W. The City has a substantial interest in promoting compliance with federal, state, and local laws intended to regulate tobacco sales and use; in discouraging the illegal purchase of tobacco products by persons under 21 years of age; in promoting compliance with laws prohibiting sales of cigarettes and tobacco products to persons under 21 years of age; and in protecting youth and underserved populations from the harms of tobacco use. California courts in Cohen v. Board of Supervisors (Cal. 1985) 40 Cal.3d 277, Bravo Vending v. City of Rancho Mirage (4th Dist. 1993) 16 Cal.App.4th 383, and Prime Gas v. City of Sacramento (3rd Dist. 2010) 184 Cal.App.4th 697, have affirmed the power of local jurisdictions to regulate business activity in order to discourage violations of law. State law authorizes local tobacco retailer licensing laws to provide for the suspension or revocation of the local tobacco retailer license for any violation of a state tobacco control law (California Business & Professions Code § 22971.3); and X. Requiring tobacco retailers to obtain a tobacco retailer license will not unduly burden legitimate business activities of retailers who sell tobacco products to adults but will, however, allow the City council to regulate the operation of lawful businesses to discourage violations of federal, state, and local tobacco control and youth tobacco access laws, as evidenced by the following:
• Tobacco products are the number one seller in U.S. convenience stores, and in 2018, they generated an average of $523,084 in sales per store; xvii
• Systematic scientific reviews indicate that merchant compliance with youth tobacco sales laws reduces the rate of tobacco use among adolescents; xviiiˑxix
• Studies found increased retailer compliance and reduced tobacco sales to youth following implementation and active enforcement of youth tobacco sales laws paired with penalties for violations;
xxˑxxi
Packet Pg. 398 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) • A review of 41 California communities with strong tobacco retailer licensing ordinances found that youth sales rates declined in 40 of these communities after the ordinances were enacted, with an average 69% decrease in the youth sales rate.xxii i U.S. Department of Health and Human Services. The Health Consequences of Smoking: 50 Years of Progress. A Report of the Surgeon General. Atlanta, GA: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health. 2014. Available at: https://www.ncbi.nlm.nih.gov/books/NBK179276/pdf/Bookshelf_NBK179276.pdf. ii World Health Organization. WHO Report on the Global Tobacco Epidemic, 2019: Offer Help to Quit Tobacco Use. 2019. Available at: https://apps.who.int/iris/handle/10665/326043. iii California Department of Public Health, California Tobacco Control Program. The #1 Preventable Cause of Death. https://tobaccofreeca.com/health/tobacco-is-the-number-one-preventable-cause-of-death. iv Centers for Disease Control and Prevention. Best Practices for Comprehensive Tobacco Control Programs — 2014. U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health. 2014. Available at:
https://www.cdc.gov/tobacco/stateandcommunity/best_practices/pdfs/2014/comprehensive.pdf. v Lortet-Tieulent J, Goding Sauer A, Siegel RL, et al. State-Level Cancer Mortality Attributable to Cigarette Smoking in the United States. JAMA Intern Med. 2016;176(12):1792-1798. doi: 10.1001/jamainternmed.2016.6530. vi Campaign for Tobacco-Free Kids. The Toll of Tobacco in California. https://www.tobaccofreekids.org/problem/toll-us/california. vii California Tobacco Control Program. California Tobacco Facts and Figures 2016. Sacramento, CA: California Department of Public Health. 2016.
viii California Tobacco Control Program. California Tobacco Facts and Figures 2019. Sacramento, CA: California Department of Public Health. 2019. Available at:
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Document%20Library/ResearchandEvalua tion/FactsandFigures/CATobaccoFactsandFigures2019.pdf.
ix Kann L, McManus T, Harris WA, et al. Youth Risk Behavior Surveillance — United States, 2017. MMWR Surveill Summ. 2018;67(8):1-114 and Supplementary Tables 52-93. doi: 10.15585/mmwr.ss6708a1. x Lin C, Baiocchi M, Halpern-Felsher B. Longitudinal trends in e-cigarette devices used by Californian youth, 2014– 2018.Addict Behav. 2020;108:106459. doi: 10.1016/j.addbeh.2020.106459. xi Clodfelter, R., Dutra, L. M., Bradfield, B., Russell, s., Levine, B., & Von Jaglinsky, A. (2023). Annual results report for the California Youth Tobacco Survey 2023. RTI International. xii Richter L, Pugh BS, Smith PH, Ball SA. The co-occurrence of nicotine and other substance use and addiction among youth and adults in the United States: implications for research, practice, and policy. Am J Drug Alcohol Abuse. 2017;43(2):132-145. doi: 10.1080/00952990.2016.1193511. xiii Conway KP, Green VR, Kasza KA, et al. Co-occurrence of Tobacco Product Use, Substance Use, and Mental Health Problems Among Youth: Findings From Wave 1 (2013-2014) of the Population Assessment of Tobacco and Health (PATH) Study. Addict Behav. 2018;76:208-217. doi: 10.1016/j.addbeh.2017.08.009. xiv United States v. Philip Morris USA, Inc. 449 F.Supp.2d 1 (D.D.C. 2006) aff’d in part, vacated in part, 566 F.3d 1095 (D. C. Cir. 2009), and order clarified, 778 F.Supp.2d 8 (D.D.C. 2011). xv Ling PM, Glantz SA. Why and How the Tobacco Industry Sells Cigarettes to Young Adults: Evidence From Industry Documents. Am J Public Health. 2002;92(6):908-916. doi: 10.2105/ajph.92.6.908. xvi Burrows, D.S. “Estimated Change in Industry Trend Following Federal Excise Tax Increase.” UCSF Library Truth Tobacco Industry Documents. Date Mod. Industry, Apr. 17, 2012:
https://www.industrydocumentslibrary.ucsf.edu/tobacco/docs/nnnw0084. xvii National Association of Convenience Stores. U.S. Convenience Store Count. Available at:
https://www.convenience.org/Research/FactSheets/ScopeofIndustry/IndustryStoreCount; Statista. In-store merchandise sales of convenience stores in the United States in 2018, by product category. Available at:
https://www.statista.com/statistics/308783/usconvenience- stores-in-store-merchandise-sales-by-category (Cigarettes + Other Tobacco Products Sales = $81.056 billion).

Packet Pg. 399 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License)

xviii U.S. Department of Health and Human Services. Preventing Tobacco Use Among Youth and Young Adults: A Report of the Surgeon General. Atlanta, GA: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health. 2012. Available at: https://www.ncbi.nlm.nih.gov/books/NBK99237/pdf/Bookshelf_NBK99237.pdf. xix DiFranza JR. Which interventions against the sale of tobacco to minors can be expected to reduce smoking? Tob Control. 2012;21:436-442. doi: 10.1136/tobaccocontrol-2011-050145. xx McLaughlin I. License to Kill?: Tobacco Retailer Licensing as an Effective Enforcement Tool. Tobacco Control Legal Consortium. 2010. Available at: http://www.publichealthlawcenter.org/sites/default/files/resources/tclc-synretailer-2010.pdf. xxi Institute of Medicine. Public Health Implications of Raising the Minimum Age of Legal Access to Tobacco Products. Washington, DC: The National Academies Press. 2015. Available at:
https://www.nap.edu/catalog/18997/public-health-implications-of-raising-the-minimum-age-of-legal-access-totobacco-products. xxii The American Lung Association in California Center for Tobacco Policy and Organizing. Tobacco Retailer Licensing is Effective. 2018.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS:

Section 1. Redding Municipal Code Title 6 (Business Taxes, Licenses and Regulations) is hereby amended by adding Chapter 6.13, to read as follows:

6.13 – TOBACCO RETAILING

6.13.010 Purpose and intent.

It is the intent of the City, in enacting this Chapter, to ensure compliance with the business standards and practices of the City, to encourage responsible tobacco retailing, and to discourage violations of tobacco-related laws, especially those that prohibit or discourage the sale or distribution of tobacco and nicotine products to youth. This Chapter is not intended to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or to alter the penalties provided therein.

6.13.020 Definitions.
(1) "Arm's length transaction" means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of whom is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this Chapter is not an arm's length transaction. (2) “Cannabis” has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time. (3) “Cannabis Product” has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time.

Packet Pg. 400 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) (4) “Cannabis Retailer” means any retail establishment in which cannabis or cannabis products are sold or offered for sale to persons that do not hold a license to engage in a commercial cannabis activity issued by the State of California in accordance with the Business and Professions Code Section 26000 et seq., as that section may be amended from time to time.
(5) "City" means the City of Redding.
(6) "City Manager" means the manager of the City as appointed by the City Council in accordance with the City's Municipal Code, or the City Manager's designee. (7) "Department" means any City division or department charged with enforcement or administration of the provisions of this Chapter.
(8) "Director" means Chief of Police or the director of the Department of Development Services, the director's designee, or such other director as may be designated by the City Manager to administer the provisions of this Chapter.
(9) "Flavored tobacco product" means any tobacco product that imparts one or more of the following:
(A)A taste or odor distinguishable by an ordinary consumer, other than the taste or odor of tobacco, either prior to or during the consumption of such tobacco product, including but not limited to tastes or odors relating to any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, mint, wintergreen, menthol, herb, or spice; or
(B) A heating, cooling, or numbing sensation distinguishable by an ordinary consumer during the consumption of such tobacco product.
(10) “Lapse” means the cessation or expiration of a Tobacco Retail license due to the failure to renew it within the required time frame or the loss of eligibility for the Tobacco Retail license. A Tobacco Retail license is considered lapsed if the licensee does not complete the necessary steps to renew or maintain the Tobacco Retail license, resulting in the license no longer being valid or active. This does not include situations in which the license is temporarily suspended.
(11) "License" means a Tobacco Retail license issued by the City pursuant to this Chapter. (12) "Licensee" means any proprietor holding a Tobacco Retail license issued by the City pursuant to this Chapter.
(13) "Manufacturer" means any person, including any repacker or relabeler, who manufactures, fabricates, assembles, processes, or labels a tobacco product; or imports a finished tobacco product for sale or distribution into the United States. (14) "Owner" means any of the following:

Packet Pg. 401 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) (A)A person with sole or aggregate ownership in the Tobacco Retail business applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance;
(B) The chief executive officer of a nonprofit, Tobacco Retailer business, or other entity;
(C) A member of the board of directors of a nonprofit, Tobacco Retailer business, or other entity;
(D)The trustee(s) and all persons who have control of the trust and/or the Tobacco Retailer business that is held in trust;
(E) An individual who participates in the direction, control, or management of the person applying for a license. Such an individual includes, but is not limited to, any of the following:
a. A general partner of a Tobacco Retailer business that is organized as a partnership;
b. Anonymous member manager or managing member of a Tobacco Retail business that is organized as a limited liability company; c. An officer or director of a Tobacco Retailer that is organized as a corporation;
d. Any individual who assumes responsibility for the license. (15) “Permanent Revocation” means permanent invalidation of a Tobacco Retailer license, which results in the license holder being prohibited from operating as a Tobacco Retailer at the licensed location. This action is final and not subject to reinstatement unless specifically authorized after a successful appeal. Once a Tobacco Retail license is permanently revoked, the licensee is no longer eligible to operate under that license at the location, and no further renewal or reissuance of the license will be allowed unless new application requirements are met.
(16) "Person" means any individual, firm, partnership, joint venture, limited liability company, nonprofit organization, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, state, county, city, municipality, district, or other political subdivision of the state, or any other group or combination acting as a unit.
(17) "Proprietor" means a person with an ownership or managerial interest in a business. A managerial interest shall be deemed to exist when a person has or does have or shares ultimate control over the day-to-day operations of a business.

Packet Pg. 402 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) (18) “Retailer” means a person who engages in this state in the sale of cigarettes or tobacco products directly to the public from a retail location. Retailer includes a person who operates vending machines from which cigarettes or tobacco products are sold in this state. (19) "Sale" or "sell" means any transfer, exchange, barter, gift, offer for sale, or distribution for a commercial purpose, in any manner or by any means whatsoever. (20) “School” means a private or public kindergarten, elementary, middle, junior high or high school.
(21) "Self-service display" means the open display or storage of tobacco products or tobacco paraphernalia in a manner that is physically accessible in any way to the general public without the assistance of the tobacco retailer or the tobacco retailer's agent or employee and without a direct person-to-person transfer between a member of the public and the tobacco retailer or tobacco retailer's agent or employee. A vending machine is a form of self-service display.
(22) “Temporary Suspension” means temporary cessation of a Tobacco Retailer license during which the retailer is prohibited from operating their business for a specified period of time. This suspension is typically imposed as a penalty for noncompliance with applicable laws or regulations and can be lifted once the licensee has met all requirements for reinstatement. A temporary suspension does not result in the permanent loss of the license, and the retailer may resume business once the suspension period ends or the license has been reinstated.
(23) "Tobacco paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking, preparation, storing, or consumption of tobacco products. (24) "Tobacco Product" means any of the following:
(A) A product containing, made, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to, cigarettes, cigars, little cigars, chewing tobacco, pipe tobacco, or snuff. (B) An electronic device that delivers nicotine or other vaporized liquids to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, pipe, or hookah.
(C) Any component, part, or accessory of a tobacco product, whether or not sold separately.
“Tobacco product” does not include a product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where the product is marketed and sold solely for such an approved purpose by this Chapter.

Packet Pg. 403 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) (25) "Tobacco Retailer" means any person who sells, offers for sale, or does or offers to exchange for any form of consideration tobacco products or tobacco paraphernalia. This definition shall be without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange. (26) "Tobacco Retailing" means engaging in any of those activities of a Tobacco Retailer.

This definition shall be without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange.

6.13.030 License required.

It shall be unlawful for any person to engage in Tobacco Retailing unless under and by authority of a valid, unexpired, unsuspended, unrevoked Tobacco Retailer License issued pursuant to this Chapter for each location at which tobacco retailing is to occur.

6.13.040 General Requirements and Prohibitions
A. Operating regulations and conditions.
(1) The provisions of this section shall constitute terms and conditions applicable to each Tobacco Retail license issued by the Director.
(2) The provisions of this section shall also constitute operating regulations that are applicable to each holder of a Tobacco Retail license issued pursuant to this Chapter. (3) It shall be unlawful for any person or entity engaged in the retail sale of tobacco products, regardless of the nature of the business or whether they are licensed under this Chapter, to violate any provision of this Chapter.

B. Lawful Business Operation.

In the course of tobacco retailing or in the operation of the business or maintenance of the location for which a license issued or not issued, it shall be a violation of this Chapter for an owner, licensee, or any of the licensee’s or owner’s agents or employees, to violate any local, state, or federal law applicable to tobacco products, tobacco accessories, or tobacco retailing.

C. Display of License.

Each Tobacco Retailer license shall be prominently displayed in a publicly visible location at the licensed location at all times.

D. Minimum Legal Sales Age.

1. No person engaged in tobacco retailing shall sell a tobacco product to a person under twenty-one (21) years of age.

Packet Pg. 404 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License)

2. No person engaged in tobacco retailing shall sell a tobacco product to another person without first verifying by means of government issued photographic identification that the recipient is at least twenty-one (21) years of age.

E. Self-Service Displays Prohibited.

Tobacco Retailing by means of a self-service display is prohibited.

F. Mobile Vending.

No license may issue to authorize tobacco retailing at other than a fixed licensed location. No tobacco retail license will be issued to a moveable place of business. It shall be a violation of this chapter for any tobacco retailer or any of the tobacco retailer’s agents or employees to engage in the delivery sale of tobacco products or to knowingly or recklessly sell or provide tobacco products to any person that intends to engage in the delivery sale of the tobacco product in the City.

G. Business License.

In addition to the Tobacco Retail license, any Tobacco Retailer must have a valid business license as required by Title 6.

H. Limits on eligibility for a Tobacco Retailer license. (1) No Tobacco Retailer shall be located within six hundred (600) feet of a school providing instruction in kindergarten or any grade levels one through twelve, as measured in a straight line between the boundary lines of the parcel of the school and the boundary lines of the parcel of the License applicant's proposed business location. (2) Notwithstanding subsection 1 of this section, a Tobacco Retailer operating lawfully on the date the ordinance codified in this Chapter is adopted that would otherwise be eligible for a Tobacco Retailer license for the location for which a license is sought may receive or renew a license for that location so long as all of the following conditions are met:

A. A complete and accurate application is submitted to the City within 60 days of the date this ordinance is adopted;
B. The license is timely obtained, maintained, and renewed without lapse or permanent revocation (as opposed to temporary suspension); C. The Tobacco Retailer has not experienced a business closure of 60 or more consecutive days to include the 30-day period immediately preceding the effective date of this ordinance;
D. The Tobacco Retailer maintains the right to operate the business under all other applicable laws;
Packet Pg. 405 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) E. The Tobacco Retailer has not substantially changed the business premises or business operation within 60 days of the date the ordinance codified in this Chapter is adopted. A substantial change to the business operation includes, but is not limited to, the transferring of a location:
(1) To a new proprietor(s) in an arm’s length transaction; or (2) For which a significant purpose is avoiding the licensing requirements of this Chapter.

F. If the City determines that a Tobacco Retailer has substantially changed their business premises or operation and the Tobacco Retailer disputes this determination, the Tobacco Retailer bears the burden of proving to the Department by a preponderance of evidence that such change(s) do not constitute a substantial change.

I. Compliance inspection.

The Director, the Chief of Police and any City official charged with enforcing the provisions of this Code shall have the power and authority to enter any business engaging in tobacco retailing during regular business hours to inspect the premises and to determine compliance with the provisions of this Chapter.
(1) Should any inspection reveal noncompliance with any of the provisions of this Chapter and should reinspection be needed to determine compliance, the cost of any such reinspection shall be billed to the owner of the premises, the operator of the business engaging in tobacco retailing, and/or the holder of the Tobacco Retailing license in the amount set forth in the schedule of fees established by resolution of the City Council. (2) Prior notice of an inspection, investigation, review, or audit is not required. (3) It is unlawful and cause for immediate denial, suspension, or revocation of a license for any licensee, property owner, proprietor, landlord, lessee, tobacco retailer, and/or its owner, agent, or employee to refuse to allow, to impede, to obstruct, to delay, or to otherwise interfere with an inspection, investigation, review, or audit. (4) When a requirement is established pursuant to this Chapter for an inspection and/or copy of a record, the record shall be delivered immediately upon demand by City personnel.

J. Flavored tobacco products.
(1) It shall be unlawful for any tobacco retailer to sell any flavored tobacco product. (2) Presumptive Flavored Tobacco Product. There shall be a rebuttable presumption that a tobacco product is a flavored tobacco product if a tobacco retailer, manufacturer, or any employee or agent of a tobacco retailer or manufacturer has taken action directed to consumers that would be reasonably expected to cause consumers to believe the tobacco product is a flavored tobacco product. Any communication by or on behalf of the Packet Pg. 406 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) manufacturer or retailer of a tobacco product that such tobacco product imparts a taste or odor other than the taste or odor of tobacco, and/or that imparts a heating, cooling, or numbing sensation, constitutes presumptive evidence that the tobacco product is a flavored tobacco product. This includes but is not limited to public statements that a product is flavored, such as describing the product as "chill," "ice," "fresh," "arctic," "sweet," "spicy," or "frost."
K. Other legal duties.
(1) Each Tobacco Retailer shall:

A. Comply with all applicable laws and ordinances governing the sale of any tobacco products or tobacco paraphernalia;
B. Comply with all conditions imposed by the Director as part of the tobacco retail license; and
C. Comply with all conditions imposed by any other permit or license required for a business engaging in tobacco retailing.
(2) Each Tobacco Retailer, and any other person(s) responsible for the operation of the business engaging in tobacco retailing, excluding the City, its agents, officers and employees, shall be jointly and severally liable for:

A. Any violation of this Chapter;
B. Any violation of the terms of the Tobacco Retail license; C. Any violation of any other license or permit required for the business engaging in tobacco retailing; and
D. Any violation of any other applicable law that arises out of the sale of tobacco products or tobacco paraphernalia.

L. Indemnification agreement required.

Any tobacco retailer applying for a Tobacco Retail license under this Chapter shall agree to fully indemnify, defend, and hold harmless the City, its officers, employees and agents for all claims, losses, or liabilities that arise out of the issuance or use of the Tobacco Retail license, or that arise out of any sale, distribution, transfer or use of tobacco products or tobacco paraphernalia, in a form approved by the City Attorney's Office.

M. Licensed cannabis businesses.

No license may issue, and no existing license may be renewed, to authorize tobacco retailing at a location licensed for commercial cannabis activity by the state of California in accordance with the Business and Professions Code Division 10, and the City in accordance with Chapter

6.12 Redding Municipal Code. In the course of tobacco retailing or in the operation of the Packet Pg. 407 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) business or maintenance of the location for which a license issued, it shall be a violation of this Chapter for a licensee, or any of the licensee’s agents or employees, to engage in commercial cannabis activity.

6.13.050 Application procedure for Tobacco Retailer.

A. An application for a Tobacco- Retailer’s license shall be submitted in the name of each owner or proprietor proposing to conduct retail tobacco sales and shall be signed by each owner or proprietor or an authorized agent thereof. All applications shall be submitted on a form supplied by the Department.

B. A license issued contrary to this Chapter, contrary to any other law, or issued on the basis of false or misleading information shall be revoked pursuant to this Chapter. Nothing in this Chapter shall be construed to vest in any person obtaining or maintaining a Tobacco Retailer’s license any status or right to act as a Tobacco Retailer in contravention of any provision of law.

C. Applicant submissions shall contain the following information:
(1) The name, address, and telephone number of each owner and proprietor of the business seeking a license.
(2) The business name, address, and telephone number of the location for which a license is sought.
(3) The name and mailing address authorized by each owner and proprietor to receive all communications and notices required by, authorized by, or related to the enforcement of this Chapter.
(4) Proof that the business and location for which a Tobacco Retailer’s license is sought has been issued all necessary state and municipal licenses for the sale of tobacco products.
(5) Listing of all prior issuances, suspensions, and/or revocations of Tobacco Retail licenses for each named proprietor or owner of the business, or their agent, and the dates and locations of each action pursuant to this Chapter. (6) Listing of dates and locations for all prior violations of local, state, or federal law governing the sale of tobacco products or California Health and Safety Code section 11351, as amended from time to time, by each named proprietor or owner or their agent occurring within the previous five years.
(7) A statement by the applicant that the contents of the application are complete, true, and correct. Any person who signs a statement pursuant to this subdivision that asserts the truth of any material matter that he or she knows to be false is guilty of a misdemeanor punishable by imprisonment of up to one year in the county jail, or a fine of not more than one thousand dollars ($1,000), or both the imprisonment and the fine.

Packet Pg. 408 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) (8) A statement by the applicant that they are the owner, proprietor, or authorized agent of the Tobacco Retail business for which the license is sought pursuant to this Chapter.
(9) A signed affidavit affirming that the proprietor has not sold and will not sell any tobacco product without a license required by this chapter. (10) Such other information as the Department deems necessary for the administration or enforcement of this Chapter as specified on the application form required by this section.

D. A licensed Tobacco Retailer or applicant shall inform the Department in writing of any change in the information submitted on an application for a tobacco retailer’s license within ten business days of a change.

6.13.060 License issuance or denial.

Upon the receipt of a complete and adequate application for a tobacco retailer’s license and the license fee required by this Chapter, the Department may approve or deny the application for a license, or it may delay action for a reasonable period of time to complete any investigation of the application or the applicant deemed necessary. The application shall be denied if one or more of the following circumstances exist:

A. The information presented in the application is inaccurate or false. Intentionally supplying inaccurate or false information shall be a violation of this Chapter.

B. The application seeks authorization for Tobacco Retailing at a location for which this Chapter prohibits issuance of Tobacco Retailer licenses.

C. The application seeks authorization for tobacco retailing for an owner or proprietor or their agent to whom this Chapter prohibits a license to be issued.

D. The application seeks authorization for tobacco retailing that is prohibited pursuant to this Chapter; that is unlawful pursuant to this Code, including without limitation, the zoning ordinance, building code, or business license tax ordinance; or that is unlawful pursuant to any other law.

E. The retailer, or if the retailer is not an individual, any person controlling the retailer or retail business, has previously been issued a license that is suspended or revoked by the Department for violation of any of the provisions of this Chapter.

F. The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless:
(1) It has been more than five years since a previous license for the retail location was revoked.

Packet Pg. 409 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) (2) The person applying for the license provides the Department with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arm's length transaction.

G. The retailer, or if the retailer is not an individual, any person controlling the retailer or retail business, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.

6.13.070 License renewal and expiration.

A Tobacco Retailer’s license is invalid if the appropriate fee has not been timely paid in full, the application is incomplete, or the term of the license has expired. The term of a Tobacco Retailer license is one year. Each Tobacco Retailer shall apply for renewal of their Tobacco Retailer’s license and submit the license renewal fee no later than thirty days prior to expiration of the current license but no earlier than 60 days prior to the expiration of the current license. A licensee who submits an incomplete application may resubmit the application for renewal as long as the current license does not lapse. A Tobacco Retailer that fails to timely submit a renewal application and fee is ineligible for license renewal; however, a timely and complete application for renewal shall toll the existing license until the renewal application is approved or denied by the City. A license that has been revoked, or is subject to revocation proceedings, shall not be renewed.

6.13.080 Licenses nontransferable.

A. A Tobacco Retailer’s license may not be transferred from one person to another or from one location to another. A new Tobacco Retailer’s license is required whenever a tobacco retailing location has a change in proprietor(s) or owners or a change in location.

B. Notwithstanding any other provision of this Chapter, prior violations at a location shall continue to be counted against a location, and license ineligibility periods shall continue to apply to a location unless the location has been transferred to new proprietor(s) or owner(s) in an arm’s length transaction.

6.13.090 License conveys a limited, conditional privilege.

Nothing in this Chapter shall be construed to grant any person obtaining or maintaining a Tobacco Retailer’s license any status or right other than the limited conditional privilege to act as a Tobacco Retailer at the location in the City identified on the face of the license.

6.13.100 Fee for license.

The fee to issue or to renew a Tobacco Retailer’s license shall be established by resolution of the City Council, which may be amended as needed at the City Council’s discretion. The fee shall be calculated so as to recover the cost of administration and enforcement of this Chapter including, but not limited to, issuances of licenses, administration of the license program, retailer education, inspection and compliance checks of Tobacco Retailing businesses, documentation of violations, representation of the City at Board hearings, prosecution of violators, and other enforcement Packet Pg. 410 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) measures but shall not exceed the cost of the regulatory program authorized by this Chapter. All fees and interest upon proceeds of fees shall be used exclusively to fund the program. Fees are nonrefundable except as may be required by law.

6.13.110 Suspension or revocation of license.

A. In addition to any other penalty authorized by law, a Tobacco Retailer’s license shall be suspended or revoked if any court of competent jurisdiction determines, or the Department finds based upon a preponderance of the evidence that the licensee, or any of the licensee’s agents, employees, or Tobacco Retailer locations, has violated any of the requirements, conditions, or prohibitions of this Chapter or has pleaded guilty, "no contest," or its equivalent, or admitted to a violation of any law applicable to the licensee in violation of this Chapter. Action taken by the director with respect to the suspension, modification, or revocation of a Tobacco Retail license shall be final and conclusive.

Any licensee aggrieved by the suspension, modification or revocation of a Tobacco Retail license may obtain review of such decision by appeal to the City Manager or the City Manager’s designee.
(1) Upon a finding by the Department of a first violation of this Chapter at a location within any five-year period, the license shall be suspended for fourteen (14) days.
(2) Upon a finding by the Department of a second violation of this Chapter at a location within any five-year period, the license shall be suspended for thirty (30) days.
(3) Upon a finding by the Department of a third violation of this Chapter at a location within any five-year period, the license shall be revoked. (4) Owners of Tobacco Retail businesses at more than one location are subject to increased penalties upon second and subsequent violations of this Chapter regardless of the business location where the earlier violation occurred. (5) The director or his designee shall have discretion to deviate from these guidelines and impose a harsher or more lenient penalty depending on the type and severity of violation, history of compliance or noncompliance by the licensee or location, and other relevant factors.
(6) Penalties shall increase with each subsequent violation without regard to type of violation.

B. A Tobacco Retailer’s license shall be revoked if the Department finds, after the licensee is afforded notice and an opportunity to be heard, that information contained in the license application, including supplemental information, if any, is false in any material respect.

C. A Tobacco Retailer’s license shall be revoked if the Department finds, after providing the licensee with notice and an opportunity to be heard, that one or more of the grounds for Packet Pg. 411 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) denial of a license pursuant to this Chapter existed at the time the application was made or at any point before the license was issued.

D. A licensee for whom a license suspension is in effect must remove all tobacco products and tobacco paraphernalia from the sales floor at the address that appears on the suspended or revoked license. Violation of this subsection or engaging in tobacco retailing while the license suspension is in effect shall result in a permanent revocation of the Tobacco Retail License.

E. The suspension or revocation shall become effective immediately following notice of suspension or revocation from the Department, unless the holder of the license files an appeal in accordance with this Chapter. If such an appeal is filed, the suspension or revocation shall not become final until the appeal is resolved by a final decision of the City Manager or their designee, or withdrawal of the appeal.

6.13.120 Appeal of suspension or revocation.

A. A decision of the Department to suspend or revoke a license is appealable to the City Manager or their designee, and any appeal must be filed in writing with the City Manager within ten (10) days of mailing of the Department’s decision.

B. If such an appeal is timely made, it shall stay enforcement of the appealed action.

C. The decision by the City Manager or their designee shall be the final decision of the City.

6.13.130 Additional remedies.

A. The remedies provided by this Chapter are cumulative and in addition to any other remedies available at law or in equity, including, without limitation those remedies established in Title 1.

B. Whenever evidence of a violation of this Chapter is obtained in any part through the participation of a person under the age of eighteen (18) years, such a person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this Chapter and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented.

C. Violations of this Chapter are subject to a civil action brought by the City, punishable by an administrative penalty not less than one thousand dollars ($1000) per violation.

D. Subsequent violations of this Chapter are subject to increased administrative penalty amounts.

E. Violations of this Chapter may, in the discretion of the City Attorney, be prosecuted as infractions or misdemeanors when the interests of justice so require.

Packet Pg. 412 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) F. In addition to any other remedy or abatement authority allowed by law, the Director may take reasonable measures to enforce the suspension or revocation of a license. Such measures may include, but are not limited to, posting notices on the property which state tobacco products are not to be sold or purchased until the conclusion of the suspension, or requiring all tobacco products to be removed from the property during the suspension or revocation period. Removal of notices posted pursuant to this section shall, constitute a misdemeanor violation of this Chapter.

G. Violations of this Chapter are hereby declared to be public nuisances and subject to abatement by the City.

H. For the purposes of the civil remedies provided in this Chapter:
(1) Each day on which tobacco products or tobacco accessories are offered for sale in violation of this Chapter shall constitute a separate violation of this Chapter; and (2) Each individual retail tobacco product and each individual retail item of tobacco accessories that is distributed, sold, or offered for sale in violation of this Chapter shall constitute a separate violation of this Chapter.

I. All tobacco retailers are responsible for the actions of their employees relating to the sale, offer to sell, and furnishing of tobacco products at the retail location. The sale of any tobacco product by an employee shall be considered an act of the tobacco retailer.

Section 2. The passage of this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) (Title 14 of the California Code of Regulations) because it has no potential for resulting in physical change to the environment, directly or indirectly
Section 3. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of remaining portions of the ordinance. The City Council of the City of Redding hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional.

Section 4. This Ordinance shall take effect thirty (30) days after the date of its adoption, and the City Clerk shall certify to the adoption thereof and cause its publication according to law.

Packet Pg. 413 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License) I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City of Redding at a regular meeting on the 15th day of July, 2025, and was duly adopted at a regular meeting on the ___ day of _______, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
___________________________________
JACK MUNNS, Mayor
ATTEST: FORM APPROVED:
______________________________ ___________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney DATE ATTESTED: ____________, 2025
Packet Pg. 414 Attachment: ^Ordinance No. 2681 Title 6 Tobacco Retail License (4(d)--Adopt Ordinance No.2681 - RMC Title 6 Tobacco Retail License)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept update regarding the proclamation declaring a local emergency due to flooding and, pursuant to Public Contract Code 20168 and 22050(c)(1), make a determination by a four-fifths vote that there is a need to continue the emergency.

Fiscal Impact
The City of Redding (City) has been notified of potential emergency aid funding, however, exact dollar amounts are yet to be determined from the state or federal authorities. Below is a table of identified emergency repair projects with estimated costs and current funding sources.

Location/Project Contractor/FA1 Estimated Costs Funding Source2 South Bonnyview Storm Drain J.F Shea $3,750,000 Wastewater Utility3 Parkview Sewer Siphon M5 $1,000,000 Wastewater Utility
Sacramento River Trail FA $2,000 Parks
Caldwell Park FA $10,500 Parks
Clover Creek Preserve FA $3,000 Parks
Angler’s Trail FA $2,000 Parks
Turtle Bay East FA $5,500 Parks
Nur Pon Trails FA $40,000 Parks
Notes:

1. FA – Force Account (Community Services’ crews).

2. If any state/federal funding is received for the respective project the reimbursed amount would be due and payable to the various funding sources.

3. As City Council (Council) approved, the Wastewater Utility provided a loan to the Storm Drain utility for the South Bonnyview Storm Drain Project. The loan will be paid annually, every June 30th and is amortized over a 20-year term at the average pooled cash rate calculated at the time of payment.

MEETING DATE: August 19, 2025
ITEM NO. 4.1(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.1(a)--Confirmation of Continued Local Emergency Due to Flooding.

Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 415
Report to Redding City Council August 11, 2025
Re: 4.1(a)--Confirmation of Continued Local Emergency Due to Flooding Page 2 Alternative Action
The Council could choose not to confirm that conditions of a local emergency continue to exist.

Under Public Contract Code section 22050(c)(1) the local emergency can only be terminated by a four-fifths vote of the Council. To that end, the Council’s prior determination of a local emergency will remain unless an affirmative vote of the Council is made to terminate the local emergency.

Background/Analysis
On February 2, 2025, a storm event occurred in the City, ultimately causing conditions beyond the immediate control of local resources, services, personnel, equipment, and facilities. These winter storms brought heavy rain to all areas of Shasta County which in turn caused a significant increase in releases from Shasta Dam resulting in localized flooding, water rescues, and damage to roadways, trail systems, storm water systems, and other infrastructure.

Due to these events and weather conditions, a local emergency was proclaimed on February 11, 2025, and on February 18, 2025, the Council ratified this proclamation and will continue the declaration until such time that the threat of these storms has subsided, there is no longer an elevated risk to life and property, and the emergency restoration of facilities has been completed.

The local emergency was declared by the City Manager serving in his capacity as Director of Emergency Services under RMC 9.12.030. The Proclamation of the Director of Emergency Services is attached.

The South Bonnyview Boat Launch access road remains closed due to the failed culvert. Staff has constructed a temporary access road for the boat launch and it is open for public use. Staff estimates that approximately 200 feet of the overall 700-foot-long, 10-foot diameter culvert has failed and other pipe sections have been compromised. J.F. Shea has received the fiberglass reinforced pipe (FRP) material and completed installation and is now working on completing the upstream headwall. J.F. Shea will be working towards the completion of the project at the end of August, 2025 and anticipates reopening the boat launch access road the first or second week of September, 2025, pending any unforeseen issues.

Nur Pon Open Space remains closed. The flood waters damaged the bridges, kayak boat launch area, and trails. Parks Division staff began ordering and importing materials while working to repair the open space. Staff has completed repairs on the main walking bridge closest to the parking area, the bathrooms, and the parking lot facility. Focus has now turned to the kayak boat launch area of the park. After that work is complete, which will allow a partial reopening, the majority of the walking loop will be repaired throughout August and into September. High river flows are affecting staff’s ability to repair a culvert, and flood erosion has made the trail impassable. Until the flows subside, the trail will remain closed in that section, and the full loop will not be open. Staff will perform additional repairs in other affected parks and open space areas and expects completion of all repair activities in August, 2025.

The Parkview Sewer Siphon Repair Project located within the Linden Creek Channel was also affected by the rain events and flood waters resulting in a landslide that exposed the existing sewer siphon just west of Parkview Avenue. Due to environmental compliance requirements, M5 Excavation (M5), was required to have the project site surveyed for nesting birds and bats, inspected for protected species such as the California red legged frog and the protected elderberry bushes. M5, is currently making good progress on reestablishing the embankment for the slope protection scope of this project. M5 anticipates completing the slope protection by the Packet Pg. 416
Report to Redding City Council August 11, 2025
Re: 4.1(a)--Confirmation of Continued Local Emergency Due to Flooding Page 3 first week of September, 2025 and moving their operations to reestablishing the creek channel, pending any unforeseen issues.

The California Governor’s Office of Emergency Services (CalOES) has requested estimates for damages to both private and public sites. Staff has met with CalOES and has sent them information on the damage and associated costs. The current damage is estimated to be $7.15 million. This cost could go up as staff continues to monitor and identify damaged areas to determine the level of repair necessary.

On July 29, 2025, in accordance with the California Emergency Services Act, the Governor declared a State of Emergency to exist in Shasta County for the 2025 February Storms. To help the impacted communities recover from the event, California Disaster Assistance Act (CDAA) funding has been authorized for Shasta County for the 2025 February Storms (CDAA 2025-07). Reimbursement process and exact dollar amounts will be forthcoming from Cal OES.

Environmental Review
This activity, Confirmation of a Continued Local Emergency, is not a project as defined by the California Environmental Quality Act (CEQA). On June 3, 2025, Council determined that the South Bonnyview Storm Drain Project and the Parkview Sewer Siphon Repair Project are exempt from review under CEQA, pursuant to Section 15269(b) – Emergency Projects. On June 17, 2025, Council determined that maintenance activities performed by the Parks Division are exempt from review under CEQA pursuant to Section 15301 – Existing Facilities. No further action is required.

Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding” Attachments
^2025 February Storms SOE
^Request for SOE and CDAA - Shasta County - 2025 February Storms - APPROVED Previous Staff Report - 021825 Declaring local emergency Resolution No. 2025-011 - Declare Local Emergency with Proclamation NOE Parkview Sewer Siphon ER
NOE S. Bonnyview Storm Drain ER
NOE Parks Maintenance Project 2025 and 2026
Packet Pg. 417

EXECUTIVE DEPARTMENT

STATE OF CALIFORNIA

PROCLAMATION OF A STATE OF EMERGENCY
WHEREAS between January 31, 2025, and February 17, 2025, Humboldt, Mendocino, Modoc, Napa, Shasta, Sonoma, and Trinity Counties were severely impacted by a series of atmospheric rivers (“2025 February Storms”); and
WHEREAS these 2025 February Storms resulted in excessive rainfall, landslides, and widespread flooding affecting roads and waterways; and WHEREAS under the provisions of Government Code section 8558(b), I find that conditions of extreme peril to the safety of persons and property exist due to the 2025 February Storms in Humboldt, Mendocino, Modoc, Napa, Shasta, Sonoma, and Trinity Counties; and
WHEREAS under the provisions of Government Code section 8558(b), I find that the conditions caused by the 2025 February Storms, by reason of their magnitude, are or are likely to be beyond the control of the services, personnel, equipment, and facilities of any single local government and require the combined forces of a mutual aid region or regions to appropriately respond; and
WHEREAS under the provisions of Government Code section 8625(c), I find that local authority is inadequate to cope with the magnitude of the extreme peril posed by the 2025 February Storms; and
WHEREAS under the provisions of Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this Proclamation would prevent, hinder, or delay the mitigation of the effects of the 2025 February Storms.

NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes, including the California Emergency Services Act, and in particular, Government Code section 8625, HEREBY PROCLAIM A STATE OF EMERGENCY to exist in Humboldt, Mendocino, Modoc, Napa, Shasta, Sonoma, and Trinity Counties.

IT IS HEREBY ORDERED THAT:

1. All agencies of the state government shall utilize and employ state personnel, equipment, and facilities for the performance of any and all activities consistent with the direction of the Office of Emergency Services and the State Emergency Plan. Also, all individuals are to obey the direction of emergency officials with regard to this emergency in order to protect their safety.

2. The Office of Emergency Services shall provide assistance to Modoc, Shasta, and Trinity Counties, if appropriate, under the authority of the California Disaster Assistance Act, Government Code section 8680 et seq., and California Code of Regulations, Title 19, section 2900 et seq.

Packet Pg. 418 Attachment: ^2025 February Storms SOE (4.1(a)--Confirmation of Continued Local Emergency Due to Flooding)

3. The California Department of Transportation shall formally request immediate assistance through the Federal Highway
Administration’s Emergency Relief Program, United States Code, Title 23, section 125, in order to obtain federal assistance for local road and highway repairs or reconstruction that are needed due to the 2025 February Storms.

4. The restrictions set forth in Penal Code section 396, which are automatically triggered upon proclamation of a state of emergency, are suspended, and no such restrictions are
imposed, with respect to the 2025 February Storms in Humboldt, Mendocino, Modoc, Napa, Shasta, Sonoma, and Trinity Counties.

I FURTHER DIRECT that as soon as hereafter possible, this Proclamation be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Proclamation.

This Proclamation is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.

IN WITNESS WHEREOF I have
hereunto set my hand and caused
the Great Seal of the State of
California to be affixed this 29th day
of July 2025.
________________________________

GAVIN NEWSOM
Governor of California
ATTEST:
________________________________
SHIRLEY N. WEBER, Ph.D.

Secretary of State
Packet Pg. 419 Attachment: ^2025 February Storms SOE (4.1(a)--Confirmation of Continued Local Emergency Due to Flooding)

GAVIN NEWSOM

GOVERNOR

NANCY WARD

DIRECTOR
3650 SCHRIEVER AVENUE, MATHER, CA 95655
(916) 845-8506 TELEPHONE (916) 845-8511 FAX
www.CalOES.ca.gov
July 30, 2025
The Honorable Kevin Crye, Chair
Shasta County Board of Supervisors
1450 Court Street No. 308B
Redding, CA 96001
Subject: Shasta County – 2025 February Storms– Request for a Governor’s State of Emergency and California Disaster Assistance Act Funding Dear Chairperson Crye:

This letter is in response to Shasta County’s request for a Governor’s State of Emergency and financial assistance from the California Disaster Assistance Act (CDAA) as a result of the 2025 February Storms.

In accordance with the California Emergency Services Act, the Governor declared a State of Emergency to exist in Shasta County on July 29, 2025, for the 2025 February Storms. To help the impacted communities recover from the event, CDAA funding is authorized for Shasta County for the 2025 February Storms (CDAA 2025-07). My staff will contact your authorized agent on record under separate cover to provide the forms necessary to apply for reimbursement utilizing the CDAA Program.

Please know Cal OES will continue to work closely with your team during the recovery efforts. Feel free to contact me directly at [email protected], if you have additional questions or would like to discuss this matter further.

Sincerely,

ELI OWEN
Assistant Director, Recovery Operations
cc: Lieutenant Rob Sandbloom, Office of Emergency Services, Shasta County David J. Rickert, County Executive Officer, Shasta County Thomas Graham, Regional Administrator, Inland Region, Cal OES Dana Ellis, Assistant Director, Northern Region, Cal OES Packet Pg. 420 Attachment: ^Request for SOE and CDAA - Shasta County - 2025 February Storms - APPROVED (4.1(a)--Confirmation of Continued Local

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution by a four-fifths vote to confirm and ratify the Proclamation of the Director of Emergency Services declaring a local emergency and authorizing the City Manager to repair or replace public facilities and procure the necessary equipment, services, and supplies for those purposes without solicitation of competitive bids in accordance with Public Contract Code 20168 and 22050.

Fiscal Impact
Adoption of the resolution could have a positive fiscal impact of an indeterminate amount as it will facilitate the recovery of the community and the receipt of emergency aid from state, and possibly federal, authorities if it becomes available.

Alternative Action
The City Council (Council) could choose not to adopt the resolution or provide alternate direction. Failure to adopt the resolution will result in a legal finding that the local emergency has ceased and will likely negatively impact the receipt of aid from state and/or federal authorities, and the City of Redding’s (City) ability to immediately repair or replace damaged infrastructure.

Background/Analysis
On February 2, 2025, a storm event arrived in the City of Redding, ultimately causing conditions to be beyond the immediate control of local resources, services, personnel, equipment, and facilities. These winter storms have brought heavy rain to all areas of Shasta County which in turn have caused a significant increase in releases from Shasta Dam resulting in localized flooding, water rescues, and damage to roadways, trail systems, storm water systems, and other infrastructure. At this time, continued high-water flows are expected with not all areas having MEETING DATE: February 18, 2025
ITEM NO. 9.1(b)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.1(b)--Consider Resolution to confirm and ratify the City of Redding Proclamation declaring a local emergency due to flooding.

Barry Tippin, City Manager
Packet Pg. 254 Packet Pg. 421 Attachment: Previous Staff Report - 021825 Declaring local emergency (4.1(a)--Confirmation of Continued Local Emergency Due to Flooding) Report to Redding City Council February 12, 2025
Re: 9.1(b)--Adopt Resolution to Confirm and Ratify the Proclamation Declaring a Local Emergency Page 2
been fully assessed. The current forecast calls for continued storms and additional snow and rainfall which could further exacerbate the damage and increase the difficulty of recovery efforts.

As the rain continues, the Bureau of Reclamation will be required to continue its high releases from Shasta Dam. There is potential for additional local flooding and infrastructure damage.

Due to these events and weather conditions, a local emergency was proclaimed on February 11, 2025, and it is recommended that the Council ratify this proclamation and continue the declaration until such time that the threat of these storms has subsided, there is no longer an elevated risk to life and property, and the emergency restoration of facilities has been completed.

The local emergency was declared by the City Manager serving in his capacity as Director of Emergency Services under RMC 9.12.030. The Proclamation of the Director of Emergency Services is attached.

Pursuant to Government Code section 8630, the Proclamation is valid for seven days. As such, if the Council does not act to adopt a resolution which confirms and ratifies the existence of a local emergency, the declaration of local emergency made under the Proclamation will lapse. A declaration of local emergency provides several benefits in time of emergency. Under Government Code section 8634, it permits a local agency to immediately promulgate orders and regulations necessary to protect the public health and safety. It further permits the State and local agencies to provide mutual aid to the City and makes the costs of such aid incurred by other agencies chargeable to the State. Lastly, the declaration of local emergency facilitates payment to the City by the State under the Disaster Assistance Act (Gov. Code section 8680 et seq.).

The resolution contains all the needed findings to continue the declaration of local emergency under the California Emergency Services Act (Government Code section 8550 et seq.). In the absence of action under Public Contract Code, the Council could declare an emergency under the California Emergency Service Act by a simple majority vote.

However, the resolution also seeks authorization under RMC 4.22.120 and Public Contract Code sections 20168 and 22050. As such, a fourth-fifths vote of the Council will be required to adopt the resolution. These sections provide authority which the Government Code, addressed above, does not. Public Contract Code sections 20168 and 22050 collectively provide authority to repair or replace a public facility, and procure the necessary equipment, services and supplies for those purposes without competitive bidding. While notice and competitive bidding are very beneficial in non-emergency situations, these processes are entirely too untimely if we are to immediately protect the public health and safety by restoration of public services and facilities. This is necessary due to the immediate need to repair or replace the 120-inch culvert that failed at the entrance to the Reginato Boat Ramp. This ramp serves as a critical entry point for river access for public safety agencies to effectuate river rescues and to access areas along the river that are otherwise inaccessible. Additionally, river guides and other river related businesses utilize this ramp extensively and prolonged closure will cause significant economic hardship as well as impeding life saving efforts by the Redding Police Department and the Shasta County Sheriff.

It should be noted that RMC 4.22.120 delegates authority to the City Manager to make a finding that the emergency will not permit the delay resulting from a competitive solicitation of bids and that immediate action is necessary to respond to the emergency. However, that authority is only valid for a period of seven days. By making this finding now by means of adoption of the resolution, the Council avoids the unfortunate circumstance whereby the immediate action sought by the City Manager to repair or replace public infrastructure will lapse absent an Packet Pg. 255 Packet Pg. 422 Attachment: Previous Staff Report - 021825 Declaring local emergency (4.1(a)--Confirmation of Continued Local Emergency Due to Flooding) Report to Redding City Council February 12, 2025
Re: 9.1(b)--Adopt Resolution to Confirm and Ratify the Proclamation Declaring a Local Emergency Page 3
immediate, emergency Council meeting. In order to ensure Council oversight, RMC

4.22.120(C)(1) requires review of action under Public Contract Code sections 20168 and 22050 at every regular meeting until such time as the emergency ceases.

In summary, the resolution serves two important functions. It facilitates coordination with other public agencies assisting the City in responding to the local emergency and is a necessary precondition to receipt of state and federal aid. It also provides authority to the City to use its own resources in accomplishing repair or replacement of damaged public infrastructure in a timely and efficient manner while ensuring Council oversight of all such activity.

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

Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
^Emergency Declaration Flood of February 2025
^Resolution - Local Emergency Declaration 02-2025
Packet Pg. 256 Packet Pg. 423 Attachment: Previous Staff Report - 021825 Declaring local emergency (4.1(a)--Confirmation of Continued Local Emergency Due to Flooding) SfILUTItJN tJ. Z{ 25- t}1
RESOLUTION Ct NFI IN G EXISTEl I E ( 7 F A LOCAL EMER+GEI T4CY HE A5, Gt vernment Code secti an 8642 provides that whenever a state c r Iocal emergency exists, the governing bcrdy ofthe local govemmental entity shall meet as soon as possible;; and WHE AS, Redding Municipal Code sections 9, 12. 03C1, and 14.24. 02, generally empower the City Manager, as Director of Emerg ncy Services, tc proclaim the existence or threa en d existence of a local emergency when the City is affected or likely to be affected by a public calamity and the City Cc uncil is not in session5 and
W IE AS, Redding Municipal Cc de section 9. 12.030(C) provides that the decisic n of the City Manager tt declare a locaZ emergency must be ratified by the City Gouncil within seven ( 7} calendar days of th City Manager' s action ar it s iall haVe no further force or effect; and WHEREAS, R dding Municipal Cade section 4.22. 120 and P'ublic Contract Cade sectians 20168 and 22050 allow the City Cauncil to e pend public monies withc ut competiti e solicitation when safeguarding life, health, ar safety wi11 nt t permit delay; nd EFtEA, the City M nager, as L}irector of Emergency ` Servicea of the City of Redding, praclaimed the existence of a local emergency, as defined in Government Code section 8558( c), within the City on the 11th day of February, 2t?25, as evidenced by the Pr ciamation of the I irectflr of Emergenc Services attached and incarporated herein; and
E AS; the Proclamation ofthe Director ofEmergency Services dated February 1 l, 2025, was ser t to the County irector of Emergency Services on February 11, 2C}25; and WHE AS, conditions c#' extreme peril to the safety c f persans and prc perty have arisen within the City which were caused by flooding caused by severe winter storms which began on February 2, 2 25, and
HEREAS, the flooding has continued through increased releases from Shasta Dam inundating and dan aging land, raads, trails and other facilities, in particular the callapse of a 120" culvert acr ss the access rc ad t the Reginato Bc at Ramp whieh prc ides river access to public s fety agencies, an F bruary 9, 025, at which time the City Council of the City of Redding was nr t in session; and E AS, there is immediate need to repair tir replace the 20" culvert that failed at the entrance to the Reginato Sc at Ramp as this ramp serves as a critical entry point fc r river access fc r public s fety agencies tc effectuate river rescues and ta acce s areas along th river that are otherwise inaccessible.

Additionally, river guides and other river related businesses utilize this ramp extensively and prolanged closure will cause significant ecanomic hardship as well as impeding lifesaving efforts by the R.edding Pc lice Departrnent and the Shasta Cuunty Sheriff; and
WHE AS, the Baard of upervisor"s for the County af Shasta ratified a proclamation af a Local Emergency far hasta Caunty on February 1l, 2fl25, anci direeted that the prc clamation be sent tc the Governr r af the State of California and the Secretary ofthe +Office of Emergency Services requesting they proclaim the County c f Shasta to be in a state of emergency; and Packet Pg. 424 Attachment: Resolution No. 2025-011 - Declare Local Emergency with Proclamation (4.1(a)--Confirmation of Continued Local Emergency Due to W IE A, the conditions caused by the flc ading are beyond the cantrol afthe services, personnei, equipment and facilities of the City ofRedding, and
WHE A, the City Ccruncil hereby finds that the afQresaid conditians of extreme peril did warrant and necessitate the proclam tion af the existence af a local emergency, 1 10W, THE F() , IT IS HE BY PRt CLAIIY ED AND ERED as follows:

1. The recitals s ated abave are true, correct, and are adopted herein.

2. The Prc clamation of the Directar t f Emergency Services dated February 11, 2025, is hereby confirmed and ratified.

3. That, pursuant to Government Code section 630{}, a local emergency withiz the meaning of Governrnent Cc de section 8558( c} exists within the jurisdictional limits of the City c f R dding.

4. That, pursuant to Public Contract Code section 20I68 and 22050, the public inter st nd riecessity d mand th immediate expenditure of public rr oney to safeguard life, health and property, the 1oca1 emergency will n t permit a delay resulting from a ct mpetitive solicitation fc r bids; immediate actic n is necessary to respond ta the lc cal emergency, and the City Manager is authc rized to repair or replace a public facility, take any directly related and immediate action required by the Ic cal emergency; and procure the necessary equipment, services and supplies for those purpt ses without giving notice fc r bids tc let contracts,

5. That, pursuant to Public Contract Code section 22050( c( 1}, the tate of local ernergency shall e deeTned to continue tcr exist until its termination is proclairned by a resolutian adapted by a fourthfifths vote af the City Council.

6. That, pursuant to Government Code section 863{ e} and Fuhlic Contract ode section 22450( c}( 1); the City Cauncil shall review the need for continuing the lacal emergeney at every regularly scheduled meeting of the City Cauncil until the City Council terminates the local emergency:

I IE Y CERTIFY that the faregoing resalutic n was introduced and adopted at a regular meeting of the City Council f the City nf Redding on the 1 Sth day af February, 2025, by the following votei A'i'ES: CQiTNCIL MEMBEIYS: - r. Dha auka, Littau, Resner, and Munns N? ES: CfJIJN+CIi:.ME ERS. - Nane
ABSENT: COUN+CTL lYIE ERS: - Au ette
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ABSTA l': COUI ICIL ME ERS. - Nane
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JA+C MUNI iS,' ayar
ATTEST; PPRt V lD AS TO F'U :
y, ,
SHARLENE TIP' TI N, City Clerk CHRIS7C'I N M. CUR' IS, ity Attorney Packet Pg. 425 Attachment: Resolution No. 2025-011 - Declare Local Emergency with Proclamation (4.1(a)--Confirmation of Continued Local Emergency Due to A PR(}+ LAM TIC} l'd UF
Tx Dr eTc + F m re s r vrcEs c F
CITI' QF RET)DIN, CALIFC1Rl TIA
W EREAS, Redding Municipal { RMC} sectian 9. 12. 030 and RMC 9. 12. 020 provide for the preparation and carrying aut of plans far the pratection af persons and property within the City 't the event af an emergency, and,
WHEPEAS, KMC sectic n 9. 12. t}30 states that the City Manager is the Director of Emergency Services and the ssistant ity Manager is the Assistant Uirectar of Ernergency S rvices, and, WHEREA,S; RMC-section 9. 12. t}30 empowers the Director car Assistant I3irectar of Emergency Servzces ta proclaitn the existence r threatened existence of a local e nergency when the City Cc uncit is not in se sion, and;
WFl"E1tEAS, the I3irector of Emergency Services of the City of Redding does hereby fnd that conditians af extreme peril tc the safaty af pers€ns and prc perty have arisen within the City ofRedding, caused by flooding; which be an on the 2nd day of Febniary, 2025 and; WHEREAS, these c4nditiions are or are likely to be be ond the cantrot ofthe servicesy persont el, equipment, and facilities ofthe Ciiy of Redding, and; W IEREAS, the City Council af the City of Redding is not in session and cannot immediately be called inta session.
1VCtW, TH REFURL', IT IS HEREBY PRUC' A ELD, that a local emergency now exists througho it the City c f Redding, and;
IT IS FII 2THER PRO` Z;AY112"ED ANTI l7R ERE that durin the existence af said laca[ ernergency the pawers, functions and duties of the emergency organizatian afthe City of Redding shall be those prescribed by the state law, by ordinances, and Y esolutions ofthe City t f Redding; and that this emergency proclarnation shall expire 7 days after issuance unless confirmed and ratified by the City Cauncil of the City csf Redding.

IN T' STIMCINY WH E+1JF, Z HEREUNT() SET MY HAND ANU C.A€ISE THE SEAL l)F HE ITY CIF PEDTIING TU I`E AFF'IXE1) TH S llti AY( 1;' FEI R tIARY, 2025. a'i
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DTRECT ' C? IVIERGEI' C SEI VICES
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I'rint Name: Barry Tippin
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t ' ikb iyrt p k. 1
7 Packet Pg. 426 Attachment: Resolution No. 2025-011 - Declare Local Emergency with Proclamation (4.1(a)--Confirmation of Continued Local Emergency Due to Packet Pg. 427
Attachment: NOE Parkview Sewer Siphon ER (4.1(a)--Confirmation of Continued Local Emergency Due to Flooding) Packet Pg. 428
Attachment: NOE S. Bonnyview Storm Drain ER (4.1(a)--Confirmation of Continued Local Emergency Due to Flooding)

NOTICE OF EXEMPTION
TO: 181 Office of Planning and Research FROM: City of Redding 1400 Tenth Street, Room 121
Sacramento, CA 95 814
Public Works Department
777 Cypress A venue
Redding, CA 96001
181 Shasta County Clerk
County of Shasta
P.O. Box 990880, 1643 Market Street
Redding, CA 96099-0880
Project Title: Redding Parks Maintenance Project FY 2025-2026 and 2026-2027 Project Location - Specific: Various locations within the City Project Location - City: Redding Project Location - County: =S=ha=s=t=a __________ _ Description of Project: The City Parks Department will perform ongoing general maintenance and repair activities at City parks and facilities. As required to provide continuous service and protect the health and safety of the public, maintenance and repair activities will be conducted on City buildings, parks, structures, facilities, trails, mechanical equipment, fences, and property. Work will involve landscaping (spraying herbicide, spreading fertilizer, spreading wood chips and compost, mulching, blowing, hedging and pruning, weeding, mowing, clearing brush and branches, clearing fallen trees); painting; installing and repairing gates and fences; vegetation removal for public safety and security purposes; hydroseeding; trenching; watering; removing graffiti; maintaining and repairing facilities and irrigation systems; pressure washing; maintaining and repairing brush chippers, skid steers, mini excavators, front loader tractors, small engine equipment, and hand tools; washing equipment and vehicles; removing trash; maintaining sports fields; and maintaining City aquatic recreation features. All work will be conducted on City property.

Name of Public Agency Approving Project: -=C=ity'-'-'o=f'-'R=e=d=d=i=nc,.g _____________________ _ Name of Person or Agency Carrying Out Project: c:::D:...=a:a.:n=ie=l-'W:...:....:..:il""'li=a=m=s.,__, "-P=ar=k=s-=M=a=na=ag::,.:e:..:.r ____________ _ Exempt Status: (check one)
D Ministerial [Section 21080(b )(1 ); 15268]
D Declared Emergency [Section 21080(b)(3); 15269(a)]
D Emergency Project [Section 21080(b)(4); 15269(b)]
D Statutory Exemptions. State code number:

D Common Sense Exemption (This project does not fall within an exempt class, but it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment (14 CCR 15061[b][3]). [8] Categorical Exemption. State type and section number: Section 15301. Existing Facilities [8] No exceptions apply that would bar the use of a categorical exemption (PRD 21084 and 14 CCR 15300.2).

Reasons why project is exempt: Class 1 exemptions include the operation, repair, maintenance, or minor alteration of existing public structures and facilities. The City structures and facilities will undergo general maintenance over the course of fiscal years 2025-2026 and 2026-2027; however, the maintenance activities will result in negligible or no expansion of use. The action areas have been reviewed and do not have significant values for wildlife habitat or other environmental resources. The project has no potential to have a significant effect on the environment.

Lead Agency Contact Person: ""'M=i=e=ke~S=h=ef=fi=1e=l=d _____ _ Telephone: 530.225.4889 If Filed by Applicant:

1. Attach certified document of exemption finding.

2. Has a notice of exemptio • Geen filed by t e public agency approving the project? □ Yes □ No SignatureM ' Date: c,- - ) U - Z. STitle: Afsociate EnvironmentAf Specialist V
[8] Signed by Lead Agency
D Signed by Applicant
Date received for filing at OPR: ______ _
CEQA NOE rev. 6 1.72022
SCH 2025060371
Packet Pg. 429 Attachment: NOE Parks Maintenance Project 2025 and 2026 (4.1(a)--Confirmation of Continued Local Emergency Due to Flooding)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve request to set a Public Hearing for Tuesday, September 2, 2025, at 6:00 p.m. in the City Council Chambers located at 777 Cypress Avenue, Redding, California, regarding the adoption of a tobacco retail license fee for the sale of tobacco and tobacco products within the City of Redding.

Fiscal Impact
There is no fiscal impact to setting the public hearing.

Alternative Action
The City Council (Council) could choose to not set the public hearing as proposed or provide alternate direction to staff.

Background/Analysis
California Government Code Sections 66016 and 66018 require that a public hearing be noticed at least ten days prior to a proposed levy of, or increase in, municipal fees and service charges.

Fees are based on cost analysis in accordance with Proposition 26.

On July 15, 2025, the Council voted to adopt a Tobacco Retail License ordinance. The second reading, for final adoption is on August 19, 2025. The Tobacco Retail License ordinance establishes regulations for businesses that sell tobacco and requires those businesses to obtain a Tobacco Retail License. The ordinance also authorizes a fee to cover the cost of the Tobacco Retail License program. The proposed fee for the Tobacco Retail License will generate revenue to cover the costs associated with license administration, education, inspections, and enforcement. The fee of $1,176.63 will be presented to Council for consideration on September 2, 2025.

MEETING DATE: August 19, 2025
ITEM NO. 4.1(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.1(b)--Request to set a Public Hearing to consider the Adoption of a Tobacco Retail License fee for the sale of tobacco and tobacco products.

Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 430
Report to Redding City Council August 12, 2025
Re: 4.1(b)--Set public hearing for consideration of a fee for a Tobacco Retail License Page 2 Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

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

Attachments
7-15-25 Staff Report
Packet Pg. 431

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Offer Ordinance amending Redding Municipal Code Title 6 (Business Taxes, Licenses, and Regulation), Chapter 6.13 (Redding Municipal Code Tobacco Retailing) adopting a Tobacco Retail license for first reading by title only, 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; and
(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.

Fiscal Impact
If the ordinance is adopted, all tobacco retailers will be required to pay a fee of $1,176.63 - the fee is based on Code Enforcement administering the Tobacco Retail License Program that includes 119 tobacco retailers operating in the City of Redding (City). The program fees will fund one, full-time Neighborhood Preservation Officer and a half-time Administrative Assistant to operate the Tobacco Retail License Program. The fee could increase or decrease if the number of tobacco retailers is found to be more or less than 119.

Alternative Action
The City Council (Council) may choose not to adopt an ordinance regulating tobacco retailers; could direct staff to alter the licensing ordinance; or may provide alternate direction to staff.

MEETING DATE: July 15, 2025
ITEM NO. 9.1(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.1(b)--Consider adopting a tobacco retail ordinance in the City of Redding.

Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 432 Attachment: 7-15-25 Staff Report (4.1(b)--Set public hearing for consideration of a fee for a Tobacco Retail License) Report to Redding City Council July 9, 2025
Re: 9.1(b)--Consider adopting a tobacco retail ordinance Page 2 Background/Analysis
On June 17, 2025, staff presented a tobacco-oriented retailer ordinance to the Council. This ordinance was specific to licensing smoke and vape shops only. The Council did not adopt the ordinance and gave further direction to staff to bring back a licensing ordinance that incorporates all tobacco retailers and includes a location restriction for new tobacco retailers to be 600 feet away from schools.

Staff worked with Code Enforcement and the City Attorney’s Office to edit the previous draft tobacco retailing ordinance (draft ordinance). Under the draft ordinance, all tobacco retailers will be required to obtain a Tobacco Retail License. The distance requirement of operating within 600 feet of a school will only apply to new tobacco retailers who operate following adoption of the draft ordinance.

Existing tobacco retailers will be allowed to continue to operate within 600 feet of a school as long as they submit a complete and accurate tobacco retail application and pay the required fee within 60 days of ordinance adoption. Following adoption, they will need to remain in good standing to continue to operate such as not having their tobacco retail license revoked due to violations. Staff defined school as any grades between kindergarten through grade 12 - this includes both public and private schools.

The draft ordinance allows for enforcement, inspections, and education to all tobacco retailers.

The sale of flavored tobacco products will be illegal in the draft ordinance and also includes that no tobacco products are to be sold to a person under the age of 21. This allows for the City to issue violations referencing the Redding Municipal Code instead of State Code.

Pending adoption of the ordinance, staff will bring back a resolution for adoption of a Tobacco Retail Licensing program and a resolution for adoption of administrative fines.

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

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Draft Tobacco Retail License Ordinance
Previous Staff Report from September 17, 2024
Previous Staff Report from March 18, 2025
Previous Staff Report from June 17, 2025
Packet Pg. 433 Attachment: 7-15-25 Staff Report (4.1(b)--Set public hearing for consideration of a fee for a Tobacco Retail License)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following modifications relative to the previously awarded Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers to WEG Transformers USA, LLC (WEG):
(1) Approve amending the original first-year award amount under Bid Schedule No. 5331 from a pre-tax total of $1,072,779 to a revised not-to-exceed amount of $2,500,000, based on evaluated pricing and increased procurement needs during the initial term; (2) Affirm the issuance of Purchase Order No. 115316 (Oracle Reference No. PUR001624) in the amount of $1,176,118.52, including applicable taxes, for transformer purchases made under the first-year contract authority; and
(3) Affirm that future price adjustments remain subject to the City Manager’s authority under the originally approved award terms and WEG’s long-term customer pricing policy, including escalation due to market conditions.

Fiscal Impact
The purchase of three-phase, pad-mounted transformers was included in the City of Redding Electric Utility’s (REU) Fiscal Years 2023–25 and 2025–27 General System Improvements Biennial Budgets.

As outlined in the five-year financial plan previously presented to the City Council (Council), funding for these improvements, including General System Improvements, was anticipated to come from bond proceeds. Should capital expenditures related to this initiative exceed the approved budget, staff will return to the Council with recommendations for any necessary budget adjustments.

MEETING DATE: August 19, 2025
ITEM NO. 4.5(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(a)--Modifications to Award of Bid Schedule No. 5331, Three-Phase, PadMounted Distribution Transformers Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 434
Report to Redding City Council August 13, 2025
Re: 4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers Page 2
Alternative Action
The Council could choose not to affirm the issuance of Purchase Order 115316 (PUR001624) or increase the original awarded amount of Bid Schedule 5331. Doing so would require Council to provide alternative procurement direction, potentially impacting REU’s ability to maintain sufficient transformer inventory.

Background/Analysis
On February 7, 2023, the Council approved the award of Bid Schedule No. 5331 to WEG Transformers USA, LLC (WEG) in the evaluated amount of $1,072,779.00 annually through November 30, 2027, pre-tax.

On February 14, 2023, Purchase Order 115168 (PUR001625) was issued for $865,501.07 including tax, based on the original contract line item pricing.

Due to severe global supply chain disruptions, materials shortages, and unprecedented market demand, the lead time for transformer delivery increased dramatically from eight to 18 weeks to 100–120 weeks. REU’s transformer inventory for new construction and emergency replacements reached critically low levels, raising the risk of construction delays.

As a result, REU implemented a strategic response, including refurbishing REU transformers removed from service, purchasing refurbished transformers from other utilities/vendors, and extending bid solicitations to include overseas manufacturers.

As part of these efforts, and due to the critical nature of the issue, on April 20, 2023, REU issued an additional Purchase Order 115316 (PUR001624) for $1,176,118.52, including tax, using the original contract pricing to procure additional transformers. At the time, staff proceeded under an interpretation of purchasing authority that was supported by the then–City Attorney and Purchasing Officer, whose prior administrative guidance recognized the multi-year nature of the award. Since that time, both the City Attorney and Purchasing Officer have changed, and under current leadership, staff is seeking Council affirmation to confirm that this purchase is still supported by Council.

Upon final receipt of the initial order (Purchase Order 115168/PUR001625), approximately two years after issuance, a pricing adjustment ($117,414.12) was required to reconcile invoicing in alignment with WEG’s long-term customer pricing policy. This order is now fully delivered, invoiced and paid.

The second order (Purchase Order 115316/PUR001624) is expected to be delivered by the end of August 2025. Staff now requests Council’s approval to increase the total awarded amount for Bid Schedule No. 5331 to $2,500,000 including tax to account for already completed Purchase Order 115168/PUR001625 as well as the outstanding Purchase Order 115316/PUR001624, including unforeseen price escalations in alignment with WEG’s long-term customer pricing policy.

Packet Pg. 435
Report to Redding City Council August 13, 2025
Re: 4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers Page 3
PO
Number
Issue Date Issue Price Closing
Date
Cost After Change Order
115168 2/14/2023 $ 865,501.07 Received
6/16/2025 $ 982,915.19
115316 4/20/2023 $ 1,176,118.52 Expected
8/25/2025 $ 1,368,615.11*
Total Including Tax $ 2,041,619.59 $ 2,351,530.30*
*This is an estimate and could change based on costs at the time of manufacturing consistent with WEG’s pricing structure for long-term customer
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
Purchase Order No. 115168
Purchase Order No. 115316
Previous Staff Report - February 7, 2023 - Item 4.5(b)
Packet Pg. 436

RECVD QTY

COMM- ODITY

DESCRIPTION OF ARTICLES UNIT

PRICE UNIT
TRADE DISC. AMOUNT COST CENTER NO. AMOUNT

ESTIMATE
PURCHASE ORDER NO.

THE ABOVE NUMBER MUST BE SHOWN ON DELIVERY
PAPERS, INVOICES, AND ALL CORRESPONDENCE.
*** Terms & Conditions Attached ***
115168
INVOICES MUST BE FORWARDED TO:

FINANCE DIVISION
P.O. BOX 496071
REDDING, CA 96049-6071
(530)225-4079 FAX (530)225-4324
TERMS: NET 30 PAGE
1 OF 3
DATE
2/14/2023 TO: DELIVER TO:

WEG TRANSFORMERS USA LLC

ONE PAUWELS DRIVE
WASHINGTON MO 63090

CITY OF REDDING
ATTN: COX S
ELECTRIC UTILITY BLDG 2
20055 VIKING WAY
REDDING CA 96003-8229
VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION
VENDOR EMAIL: [email protected]

QUOTE BID
5331
Do not fill this order if unable to fill exactly as written, including price, without prior approval by purchasing officer.

No. 115168
GROUP 1 THREE PHASE PAD-TYPE TRANSFORMER
12KV 120/208V
CITY PART # E 82524

4.000 75 KVA 120/208V 19,453.000 EA 77,812.00
(ITEM #1 ON BID)
CITY PART # E 82525

3.000 112.5 KVA 120/208V 21,441.000 EA 64,323.00
(ITEM #2 ON BID)
CITY PART # E 82526

5.000 150 KVA 120/208V 21,949.000 EA 109,745.00
(ITEM #3 ON BID)
CITY PART # E 82527

3.000 225 KVA 120/208V 25,183.000 EA 75,549.00
(ITEM #4 ON BID)
GROUP 2 THREE PHASE PAD TYPE TRANSFORMER
12KV 277/480V
CITY PART # E 82533

1.000 75 KVA 277/480V 19,247.000 EA 19,247.00
(ITEM #9 ON BID)
CITY PART # E 82537

2.000 300 KVA 277/480V 26,884.000 EA 53,768.00
(ITEM #13 ON BID)
Packet Pg. 437 Attachment: Purchase Order No. 115168 (4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers)

RECVD QTY

COMM- ODITY

DESCRIPTION OF ARTICLES UNIT

PRICE UNIT
TRADE DISC. AMOUNT COST CENTER NO. AMOUNT

ESTIMATE
PURCHASE ORDER NO.

THE ABOVE NUMBER MUST BE SHOWN ON DELIVERY
PAPERS, INVOICES, AND ALL CORRESPONDENCE.
*** Terms & Conditions Attached ***
115168
INVOICES MUST BE FORWARDED TO:

FINANCE DIVISION
P.O. BOX 496071
REDDING, CA 96049-6071
(530)225-4079 FAX (530)225-4324
TERMS: NET 30 PAGE
2 OF 3
DATE
2/14/2023 TO: DELIVER TO:

WEG TRANSFORMERS USA LLC

ONE PAUWELS DRIVE
WASHINGTON MO 63090

CITY OF REDDING
ATTN: COX S
ELECTRIC UTILITY BLDG 2
20055 VIKING WAY
REDDING CA 96003-8229
VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION
VENDOR EMAIL: [email protected]

QUOTE BID
5331
Do not fill this order if unable to fill exactly as written, including price, without prior approval by purchasing officer.

No. 115168
CITY PART # E 82539

2.000 750 KVA 277/480V 42,376.000 EA 84,752.00
(ITEM #15 ON BID)
CITY PART # E 82540

3.000 1000 KVA 277/480V 46,309.000 EA 138,927.00
(ITEM #16 ON BID)
CITY PART # E 82532

3.000 1500 KVA 277/480V 60,957.000 EA 182,871.00
(ITEM #17 ON BID)
P/O Subtotal 806,994.00
Total Tax 58,507.07
P/O Total 865,501.07
CITY OF REDDING CONTACT: 6580-31 865,501.07
SCOTT COX (530)224-4329.
.PER SPECIFICATIONS,TERMS AND CONDITIONS
AND VENDOR SUBMISSION OF BID 5331
INCORPORATED HEREIN BY THIS REFERENCE.
.TRANSFORMERS SHALL BE SHIPPED AS
DESCRIBED IN THE SPECIFICATIONS.
.24 HOUR ADVANCE NOTICE REQUIRED PRIOR TO
DELIVERY - CALL 530-224-4329.

Packet Pg. 438 Attachment: Purchase Order No. 115168 (4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers)

RECVD QTY

COMM- ODITY

DESCRIPTION OF ARTICLES UNIT

PRICE UNIT
TRADE DISC. AMOUNT COST CENTER NO. AMOUNT

ESTIMATE
PURCHASE ORDER NO.

THE ABOVE NUMBER MUST BE SHOWN ON DELIVERY
PAPERS, INVOICES, AND ALL CORRESPONDENCE.
*** Terms & Conditions Attached ***
115168
INVOICES MUST BE FORWARDED TO:

FINANCE DIVISION
P.O. BOX 496071
REDDING, CA 96049-6071
(530)225-4079 FAX (530)225-4324
TERMS: NET 30 PAGE
3 OF 3
DATE
2/14/2023 TO: DELIVER TO:

WEG TRANSFORMERS USA LLC

ONE PAUWELS DRIVE
WASHINGTON MO 63090

CITY OF REDDING
ATTN: COX S
ELECTRIC UTILITY BLDG 2
20055 VIKING WAY
REDDING CA 96003-8229
VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION
VENDOR EMAIL: [email protected]

QUOTE BID
5331
Do not fill this order if unable to fill exactly as written, including price, without prior approval by purchasing officer.

COR Internal Use Only
I hereby certify that I have received the quantities and qualities as noted in good condition, except as noted hereon.

Authorized Signature Date Goods Received

PURCHASING OFFICER
This order not valid unless signed
by the purchasing officer
No. 115168
.**PLEASE SEND BILLING INVOICE, WITH THIS

PURCHASE ORDER NUMBER, TO THE ADDRESS
INDICATED AT THE UPPER LEFT OF THE P.O.

OR EMAIL TO [email protected]
Packet Pg. 439 Attachment: Purchase Order No. 115168 (4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers) Revised 12/10/2020
City of Redding, CA: Purchase Order Terms and Conditions

1. GENERAL: If the goods and/or services ordered herein are as a result of either a formal Request for Quotation, Request for Proposal or Notice Inviting Bids then the Terms and Conditions set forth in this document are considered to be in addition to the requirements and specifications stated in the RFQ, RFP or NIB. To the extent that one set of Terms and Conditions may contradict the other, the requirements of the RFQ, RFP or NIB shall supercede the Terms and Conditions shown below. It is understood that all materials and/or services provided by Supplier/Contractor/Consultant (Supplier) shall conform to the applicable requirements of City Ordinances, and all applicable State and Federal Laws

2. DELIVERY: Supplier shall deliver the items and/or services stated herein free from any and all claims, debts, or demands whatsoever.

Deliveries shall be made as set forth in this order and any additional Specifications incorporated. Delivery is defined as complete delivery in good order, at place designated in the Specifications/Purchase Order.

3. MISCELLANEOUS CHARGES: No charges for transportation, containers, packing, etc. will be allowed unless so specified in this order.

4. FREIGHT CHARGES: All shipments are F.O.B. - Destination, Supplier pays charges, unless specified otherwise in the body of this order. If City has agreed to pay freight it shall be prepaid and added to the invoice. In that case a copy of the paid express or freight bill must be attached to the invoice.

5. INDEMNITY: Supplier hereby agrees to protect, defend, indemnify and hold harmless, City, its officers, elected and appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgements, demands, penalties, fines, defense costs, and consequential damage or liability of any kind or nature, however caused, arising directly or indirectly out of the obligations or operations herein undertaken by Supplier, caused in whole or in part by any act or omission of the Supplier, any subcontractors, any 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 active negligence, sole negligence or willful misconduct of the City. Supplier will conduct all defense at its sole cost and expense and the City shall have the right to approve or disapprove Supplier=s legal counsel. City shall be reimbursed for all costs and attorneys= fees incurred by the City 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 the indemnification to be provided by Contractor.

6. PATENT RIGHTS: Any equipment or service to be furnished hereunder shall not, either in construction, manufacture, use, sale or other particular, infringe any letters patent, copyright or registered trademark heretofore granted, and the Supplier shall defend and pay the entire cost of defending any claim or suit whenever or wherever made or brought against the City based upon an infringement or alleged infringement of such letters patent, copyright or registered trademark and shall indemnify and save harmless the City from and against any and all liability, damage, loss or injury adjudged or sustained in any such claim or suit.

7. NONDISCRIMINATION CLAUSE: Except as provided in
Section 12940 et seq. of the Government Code, Supplier shall not discriminate against any person because of his/her race, religious creed, color, national origin, ancestry, physical disability, mental disability, marital status, mental condition, or gender, nor refuse to hire or employ a person or to refuse to select the person for a training program leading to employment or to bar or discharge the person from employment, or from a training program leading to employment, or to discriminate against the person in compensation or in terms, conditions or privileges of employment. The Supplier shall insert in all subcontracts for any work covered by this P. O. this nondiscrimination provision.

8. EXCISE TAX: If federal excise tax is applicable to the transaction, it must be clearly stated so and excluded from the price of the article.

The City of Redding, as a government agency, is exempt from the payment of said tax and will issue an exemption certificate.

9. SALES AND USE TAXES: Sales and/or use tax must be shown on the invoice as a separate item.

10. DEFAULT BY SUPPLIER: In case of default by Supplier, the City reserves the right to procure the goods or services from other sources and to hold the Supplier responsible for any excess costs occasioned to the City thereby. Supplier must notify the City immediately upon knowing that non-performance or delay will apply to this order whether as a result of Force Majeure or not. Upon agreement by the City that Force Majeure is applicable, Supplier shall not be held accountable for the delays directly related to the Force Majeure condition. When delay is ascertained Supplier is to submit in writing a Recovery Plan for this order. If the Recovery Plan is not acceptable to the City or not received within 10 calendar days of the necessary notification of delay or Force Majeure default, the City may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point. City shall not be liable for lost profits, implied or express damages or consequential damages.

11. INSPECTION AND ACCEPTANCE: Inspection and acceptance shall be at destination, unless otherwise provided. Until delivery and acceptance, and after any rejections, risk of loss shall be on the Supplier unless loss results from the negligence of the City of Redding.

Notwithstanding the requirement for any inspection and test contained in specifications applicable to this contract, except where specialized inspection or tests are specified solely for the City, the Supplier shall perform or have performed the inspection and tests required to substantiate that the supplies and services provided under the contract conform to the drawings, specifications, and contract requirements incorporated herein, including if applicable the technical specifications for the manufacturers= part numbers or products specified herein.

12. PAYMENTS: Payment terms are Net 30 unless otherwise agreed to by both parties. All Cash Discounts shall be taken and computed from the date of delivery or completion and acceptance of the material, or from the date of receipt of invoice, whichever is latest. Each payment obligation of the City is conditioned upon the availability of state or local government funds which are apportioned or allocated for the payment of such an obligation. If the funds are not allocated and available for the continuance of the function performed by the Supplier, the product or service directly or indirectly involved in the performance of that function may be terminated by the City at the end of the period for which funds are available. No payment will be made until the order has been delivered and accepted.

13. INVOICES: Invoices shall contain the following information:

Supplier=s Federal Tax I.D. number, purchase order number, invoice number and date, item number, description of supplies/services, quantities and units of measure, unit prices and extended totals. Bill of Lading number and weight of shipment will be shown for shipments on Government Bills of Lading.

14. WARRANTY: The Supplier agrees that the supplies/services furnished under this contract shall be covered by the most favorable commercial warranties the Supplier gives to any customer for such supplies/services, and that the rights and remedies provided herein are in addition to, and do not limit any rights afforded to the City by, any other clause of a contract awarded hereunder.

15. ASSIGNMENT OF CLAIMS: Claims for monies due or to
become due under this contract shall be assigned only pursuant to prior written consent of the City Purchasing Officer or designated representative.

16. CONTRACT TERMINATION: The City may, by giving ten (10) calendar days written notice to the Supplier, terminate this contract prior to the designated completion date for due cause. Due cause for termination shall be, but not limited to, the best interests of the City, failure of the product to meet specifications, and/or for reasons of unsatisfactory service. The City may, upon giving thirty (30) calendar days written notice to Supplier, terminate the contract without cause.

17. GOVERNING LAW: Any action filed regarding the award of the Quote/ Bid/Proposal or Purchase Order must be filed with the Superior Court of the County of Shasta, California. Any subsequent agreement shall be deemed to have been entered into in Redding, California; all questions of the validity, interpretation or performance of any of its terms or of any rights or obligations of the parties to the agreement shall be governed by California law; and any action brought by either party to enforce any of the terms of the agreement shall be filed with the Superior Court of the County of Shasta, California.

18. ATTORNEYS= FEES AND COSTS: In any action by a party to enforce its rights hereunder, the nonprevailing party shall pay the prevailing party=s legal costs and expenses (including reasonable attorneys= fees).

19. CHANGE ORDERS: The City reserves the right at any time to make written changes within the general scope of the contract. If any such changes cause an increase or decrease in the cost of, or in the time required for the performance of the contract, an equitable adjustment shall be made in the contract price, delivery schedule, or both. Any claim by Supplier for adjustment in this cause must be approved by the City=s authorized representative(s) in writing (formal change order, amendment, or revision) before Supplier proceeds with such change.

Packet Pg. 440 Attachment: Purchase Order No. 115168 (4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers)

RECVD QTY

COMM- ODITY

DESCRIPTION OF ARTICLES UNIT

PRICE UNIT
TRADE DISC. AMOUNT COST CENTER NO. AMOUNT

ESTIMATE
PURCHASE ORDER NO.

THE ABOVE NUMBER MUST BE SHOWN ON DELIVERY
PAPERS, INVOICES, AND ALL CORRESPONDENCE.
*** Terms & Conditions Attached ***
115316
INVOICES MUST BE FORWARDED TO:

FINANCE DIVISION
P.O. BOX 496071
REDDING, CA 96049-6071
(530)225-4079 FAX (530)225-4324
TERMS: NET 30 PAGE
1 OF 3
DATE
4/20/2023 TO: DELIVER TO:

WEG TRANSFORMERS USA LLC

ONE PAUWELS DRIVE
WASHINGTON MO 63090

CITY OF REDDING
ATTN: COX S
ELECTRIC UTILITY BLDG 2
20055 VIKING WAY
REDDING CA 96003-8229
VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION
VENDOR EMAIL: [email protected]

QUOTE BID
5331
Do not fill this order if unable to fill exactly as written, including price, without prior approval by purchasing officer.

No. 115316
GROUP 1 THREE PHASE PAD-TYPE TRANSFORMER
12KV 120/208V
CITY PART # E 82526

4.000 150 KVA 120/208V 21,949.000 EA 87,796.00
(ITEM #3 ON BID)
CITY PART # E 82527

4.000 225 KVA 120/208V 25,183.000 EA 100,732.00
(ITEM #4 ON BID)
GROUP 2 THREE PHASE PAD TYPE TRANSFORMER
12KV 277/480V
CITY PART # E 82533

2.000 75 KVA 277/480V 19,247.000 EA 38,494.00
(ITEM #9 ON BID)
CITY PART # E 82537

4.000 300 KVA 277/480V 26,884.000 EA 107,536.00
(ITEM #13 ON BID)
CITY PART # E 82538

2.000 500 KVA 277/480V 32,223.000 EA 64,446.00
(ITEM #14 ON BID)
CITY PART # E 82539

4.000 750 KVA 277/480V 42,376.000 EA 169,504.00
(ITEM #15 ON BID)
Packet Pg. 441 Attachment: Purchase Order No. 115316 (4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers)

RECVD QTY

COMM- ODITY

DESCRIPTION OF ARTICLES UNIT

PRICE UNIT
TRADE DISC. AMOUNT COST CENTER NO. AMOUNT

ESTIMATE
PURCHASE ORDER NO.

THE ABOVE NUMBER MUST BE SHOWN ON DELIVERY
PAPERS, INVOICES, AND ALL CORRESPONDENCE.
*** Terms & Conditions Attached ***
115316
INVOICES MUST BE FORWARDED TO:

FINANCE DIVISION
P.O. BOX 496071
REDDING, CA 96049-6071
(530)225-4079 FAX (530)225-4324
TERMS: NET 30 PAGE
2 OF 3
DATE
4/20/2023 TO: DELIVER TO:

WEG TRANSFORMERS USA LLC

ONE PAUWELS DRIVE
WASHINGTON MO 63090

CITY OF REDDING
ATTN: COX S
ELECTRIC UTILITY BLDG 2
20055 VIKING WAY
REDDING CA 96003-8229
VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION
VENDOR EMAIL: [email protected]

QUOTE BID
5331
Do not fill this order if unable to fill exactly as written, including price, without prior approval by purchasing officer.

No. 115316
CITY PART # E 82532

3.000 1500 KVA 277/480V 60,957.000 EA 182,871.00
(ITEM #17 ON BID)
CITY PART # E 82522

3.000 2000 KVA 277/480V 79,333.000 EA 237,999.00
(ITEM #18 ON BID)
GROUP 3 THREE PHASE PAD TYPE TRANSFORMER
12KV 120/240V DELTA-DELTA
CITY PART # E 82561

4.000 300 KVA 120/240V 26,809.000 EA 107,236.00
(ITEM #20 ON BID)
P/O Subtotal 1,096,614.00
Total Tax 79,504.52
P/O Total 1,176,118.52
CITY OF REDDING CONTACT: 6580-31 1,176,118.52
SCOTT COX (530)224-4329.
.PER SPECIFICATIONS,TERMS AND CONDITIONS
AND VENDOR SUBMISSION OF BID 5331
INCORPORATED HEREIN BY THIS REFERENCE.
.TRANSFORMERS SHALL BE SHIPPED AS
DESCRIBED IN THE SPECIFICATIONS.
.24 HOUR ADVANCE NOTICE REQUIRED PRIOR TO
DELIVERY - CALL 530-224-4329.

Packet Pg. 442 Attachment: Purchase Order No. 115316 (4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers)

RECVD QTY

COMM- ODITY

DESCRIPTION OF ARTICLES UNIT

PRICE UNIT
TRADE DISC. AMOUNT COST CENTER NO. AMOUNT

ESTIMATE
PURCHASE ORDER NO.

THE ABOVE NUMBER MUST BE SHOWN ON DELIVERY
PAPERS, INVOICES, AND ALL CORRESPONDENCE.
*** Terms & Conditions Attached ***
115316
INVOICES MUST BE FORWARDED TO:

FINANCE DIVISION
P.O. BOX 496071
REDDING, CA 96049-6071
(530)225-4079 FAX (530)225-4324
TERMS: NET 30 PAGE
3 OF 3
DATE
4/20/2023 TO: DELIVER TO:

WEG TRANSFORMERS USA LLC

ONE PAUWELS DRIVE
WASHINGTON MO 63090

CITY OF REDDING
ATTN: COX S
ELECTRIC UTILITY BLDG 2
20055 VIKING WAY
REDDING CA 96003-8229
VENDOR NUMBER 74215 DIVISION 853 ELECTRIC-DISTRIBUTION
VENDOR EMAIL: [email protected]

QUOTE BID
5331
Do not fill this order if unable to fill exactly as written, including price, without prior approval by purchasing officer.

COR Internal Use Only
I hereby certify that I have received the quantities and qualities as noted in good condition, except as noted hereon.

Authorized Signature Date Goods Received

PURCHASING OFFICER
This order not valid unless signed
by the purchasing officer
No. 115316
.**PLEASE SEND BILLING INVOICE, WITH THIS

PURCHASE ORDER NUMBER, TO THE ADDRESS
INDICATED AT THE UPPER LEFT OF THE P.O.

OR EMAIL TO [email protected]
Packet Pg. 443 Attachment: Purchase Order No. 115316 (4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers) Revised 12/10/2020
City of Redding, CA: Purchase Order Terms and Conditions

1. GENERAL: If the goods and/or services ordered herein are as a result of either a formal Request for Quotation, Request for Proposal or Notice Inviting Bids then the Terms and Conditions set forth in this document are considered to be in addition to the requirements and specifications stated in the RFQ, RFP or NIB. To the extent that one set of Terms and Conditions may contradict the other, the requirements of the RFQ, RFP or NIB shall supercede the Terms and Conditions shown below. It is understood that all materials and/or services provided by Supplier/Contractor/Consultant (Supplier) shall conform to the applicable requirements of City Ordinances, and all applicable State and Federal Laws

2. DELIVERY: Supplier shall deliver the items and/or services stated herein free from any and all claims, debts, or demands whatsoever.

Deliveries shall be made as set forth in this order and any additional Specifications incorporated. Delivery is defined as complete delivery in good order, at place designated in the Specifications/Purchase Order.

3. MISCELLANEOUS CHARGES: No charges for transportation, containers, packing, etc. will be allowed unless so specified in this order.

4. FREIGHT CHARGES: All shipments are F.O.B. - Destination, Supplier pays charges, unless specified otherwise in the body of this order. If City has agreed to pay freight it shall be prepaid and added to the invoice. In that case a copy of the paid express or freight bill must be attached to the invoice.

5. INDEMNITY: Supplier hereby agrees to protect, defend, indemnify and hold harmless, City, its officers, elected and appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgements, demands, penalties, fines, defense costs, and consequential damage or liability of any kind or nature, however caused, arising directly or indirectly out of the obligations or operations herein undertaken by Supplier, caused in whole or in part by any act or omission of the Supplier, any subcontractors, any 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 active negligence, sole negligence or willful misconduct of the City. Supplier will conduct all defense at its sole cost and expense and the City shall have the right to approve or disapprove Supplier=s legal counsel. City shall be reimbursed for all costs and attorneys= fees incurred by the City 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 the indemnification to be provided by Contractor.

6. PATENT RIGHTS: Any equipment or service to be furnished hereunder shall not, either in construction, manufacture, use, sale or other particular, infringe any letters patent, copyright or registered trademark heretofore granted, and the Supplier shall defend and pay the entire cost of defending any claim or suit whenever or wherever made or brought against the City based upon an infringement or alleged infringement of such letters patent, copyright or registered trademark and shall indemnify and save harmless the City from and against any and all liability, damage, loss or injury adjudged or sustained in any such claim or suit.

7. NONDISCRIMINATION CLAUSE: Except as provided in
Section 12940 et seq. of the Government Code, Supplier shall not discriminate against any person because of his/her race, religious creed, color, national origin, ancestry, physical disability, mental disability, marital status, mental condition, or gender, nor refuse to hire or employ a person or to refuse to select the person for a training program leading to employment or to bar or discharge the person from employment, or from a training program leading to employment, or to discriminate against the person in compensation or in terms, conditions or privileges of employment. The Supplier shall insert in all subcontracts for any work covered by this P. O. this nondiscrimination provision.

8. EXCISE TAX: If federal excise tax is applicable to the transaction, it must be clearly stated so and excluded from the price of the article.

The City of Redding, as a government agency, is exempt from the payment of said tax and will issue an exemption certificate.

9. SALES AND USE TAXES: Sales and/or use tax must be shown on the invoice as a separate item.

10. DEFAULT BY SUPPLIER: In case of default by Supplier, the City reserves the right to procure the goods or services from other sources and to hold the Supplier responsible for any excess costs occasioned to the City thereby. Supplier must notify the City immediately upon knowing that non-performance or delay will apply to this order whether as a result of Force Majeure or not. Upon agreement by the City that Force Majeure is applicable, Supplier shall not be held accountable for the delays directly related to the Force Majeure condition. When delay is ascertained Supplier is to submit in writing a Recovery Plan for this order. If the Recovery Plan is not acceptable to the City or not received within 10 calendar days of the necessary notification of delay or Force Majeure default, the City may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point. City shall not be liable for lost profits, implied or express damages or consequential damages.

11. INSPECTION AND ACCEPTANCE: Inspection and acceptance shall be at destination, unless otherwise provided. Until delivery and acceptance, and after any rejections, risk of loss shall be on the Supplier unless loss results from the negligence of the City of Redding.

Notwithstanding the requirement for any inspection and test contained in specifications applicable to this contract, except where specialized inspection or tests are specified solely for the City, the Supplier shall perform or have performed the inspection and tests required to substantiate that the supplies and services provided under the contract conform to the drawings, specifications, and contract requirements incorporated herein, including if applicable the technical specifications for the manufacturers= part numbers or products specified herein.

12. PAYMENTS: Payment terms are Net 30 unless otherwise agreed to by both parties. All Cash Discounts shall be taken and computed from the date of delivery or completion and acceptance of the material, or from the date of receipt of invoice, whichever is latest. Each payment obligation of the City is conditioned upon the availability of state or local government funds which are apportioned or allocated for the payment of such an obligation. If the funds are not allocated and available for the continuance of the function performed by the Supplier, the product or service directly or indirectly involved in the performance of that function may be terminated by the City at the end of the period for which funds are available. No payment will be made until the order has been delivered and accepted.

13. INVOICES: Invoices shall contain the following information:

Supplier=s Federal Tax I.D. number, purchase order number, invoice number and date, item number, description of supplies/services, quantities and units of measure, unit prices and extended totals. Bill of Lading number and weight of shipment will be shown for shipments on Government Bills of Lading.

14. WARRANTY: The Supplier agrees that the supplies/services furnished under this contract shall be covered by the most favorable commercial warranties the Supplier gives to any customer for such supplies/services, and that the rights and remedies provided herein are in addition to, and do not limit any rights afforded to the City by, any other clause of a contract awarded hereunder.

15. ASSIGNMENT OF CLAIMS: Claims for monies due or to
become due under this contract shall be assigned only pursuant to prior written consent of the City Purchasing Officer or designated representative.

16. CONTRACT TERMINATION: The City may, by giving ten (10) calendar days written notice to the Supplier, terminate this contract prior to the designated completion date for due cause. Due cause for termination shall be, but not limited to, the best interests of the City, failure of the product to meet specifications, and/or for reasons of unsatisfactory service. The City may, upon giving thirty (30) calendar days written notice to Supplier, terminate the contract without cause.

17. GOVERNING LAW: Any action filed regarding the award of the Quote/ Bid/Proposal or Purchase Order must be filed with the Superior Court of the County of Shasta, California. Any subsequent agreement shall be deemed to have been entered into in Redding, California; all questions of the validity, interpretation or performance of any of its terms or of any rights or obligations of the parties to the agreement shall be governed by California law; and any action brought by either party to enforce any of the terms of the agreement shall be filed with the Superior Court of the County of Shasta, California.

18. ATTORNEYS= FEES AND COSTS: In any action by a party to enforce its rights hereunder, the nonprevailing party shall pay the prevailing party=s legal costs and expenses (including reasonable attorneys= fees).

19. CHANGE ORDERS: The City reserves the right at any time to make written changes within the general scope of the contract. If any such changes cause an increase or decrease in the cost of, or in the time required for the performance of the contract, an equitable adjustment shall be made in the contract price, delivery schedule, or both. Any claim by Supplier for adjustment in this cause must be approved by the City=s authorized representative(s) in writing (formal change order, amendment, or revision) before Supplier proceeds with such change.

Packet Pg. 444 Attachment: Purchase Order No. 115316 (4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Distribution Transformers)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following relative to Bid Schedule No. 5331, Three-Phase, Pad-Type Distribution Transformers for the Redding Electric Utility:
(1) Award to WEG Transformers USA, LLC, (WEG) for the pretax amount of $1,072,779; (2) Authorize the Purchasing Officer to extend the bid award annually with WEG through November 30, 2027, if mutually agreeable, with all terms and conditions remaining the same, and price adjustments per WEG’s price adjustment policy for long term customers; and
(3) Authorize the City Manager, or designee, to approve changes to future pricing terms and policies as needed due to inflation and unstable economic conditions.

Fiscal Impact
Redding Electric Utility (REU) included funding for purchasing three-phase, pad-type distribution transformers in its adopted budget for the Fiscal Year 2022-23. REU will include transformer costs for future years as part of its biennial budget requests.

Alternative Action
The City Council could choose to not award the bid to WEG, and provide staff with an alternative direction.

Background/Analysis
This is a routine bid for the purchase of three-phase, pad-type distribution transformers through November 30, 2023, on an as-needed basis, subject to the availability of budgeted funds. These three-phase, pad-type distribution transformers are required to support residential and commercial development and provide emergency replacement of the existing three-phase, pad-type distribution transformers that are presently in service.

MEETING DATE: February 7, 2023
ITEM NO. 4.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(b)--Award Bid Schedule No. 5331, Three-Phase, Pad-Type Distribution Transformers
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 445 Attachment: Previous Staff Report - February 7, 2023 - Item 4.5(b) (4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted Report to Redding City Council January 30, 2023
Re: 4.5(b)--Bid Schedule No. 5331, Three-Phase, Pad-Type Distribution Transformers Page 2 On November 28, 2022, two bids were opened for the subject three-phase, pad-type distribution transformers. In the evaluation process, staff analyzed the bids based on the bid price and compliance with specifications. The qualifying low bid was submitted by WEG, which supplies the needed transformers and is compliant with the specifications, general conditions, and proposal requirements. WEG has previously supplied distribution transformers to REU.

Transformers are purchased based on two criteria – purchase price and efficiency. The initial savings from a less costly transformer can be lost if the transformer is inefficient. Inefficiency results in a much higher cost for energy losses, which increases the life cycle cost of the unit.

Bidders are made aware of the methodology used in bid evaluations.

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

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

Attachments
Bid Tab - 5331
Packet Pg. 446 Attachment: Previous Staff Report - February 7, 2023 - Item 4.5(b) (4.5(a)--Modifications to Bid Schedule No. 5331, Three-Phase, Pad-Mounted

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions related to obtaining a license agreement with AVEVA Software, LLC:
(1) Approve a sole-source licensing agreement with AVEVA Software, LLC for PI System software totaling $413,920.80 for three years; and
(2) Authorize the City Manager, or designee, to sign and execute the license agreement, general terms and conditions, and any additional documents related to the agreement for processing orders for the City of Redding Electric Utility.

Fiscal Impact
AVEVA Software, LLC (AVEVA) license agreement funding for PI System software (PI Software) is included for both years in Redding Electric Utilities (REU) approved Fiscal Year 2025– 2027 Biennial Budget. The contract's third year will be incorporated into the next biennial budget cycle.

Based on recent quotes, the estimated costs of $413,920.80 will be billed as follows:

Year 1* Year 2 Year 3
$80,736 $162,542.64 $170,642.16
*Year one licensing will be for Power Plant data only, and Transmission & Distribution Supervisory Control and Data Acquisition data will be included in years 2 and 3.

The cost includes licensing for full access to the PI Software suite, which provides data collection, processing, and visualization capabilities. It also covers licensing for a highavailability configuration to ensure continuous data access—an essential component for real-time electrical grid operations.

MEETING DATE: August 19, 2025
ITEM NO. 4.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(b)--Approve Sole-Source Agreement with AVEVA Software, LLC for PI System software licensing.

Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 447
Report to Redding City Council August 13, 2025
Re: 4.5(b)--Approve Sole-Source for PI System licensing with AVEVA Software LLC Page 2 The initial implementation costs are included in the PI implementation capital project, as they represent the acquisition and installation of a long-term software asset. Ongoing annual licensing fees will be budgeted as operations and maintenance expenses to support the system's continued use and functionality.

All additional software and hardware required to deploy the PI Software on the City of Redding’s (City) in-house servers have been fully budgeted. They will be procured in accordance with the City’s Purchasing Division Policies and Procedures.

Alternative Action
The City Council may choose not to approve the sole source contract and provide alternate direction to staff. Not contracting with AVEVA would limit staff’s options to replace the obsolete Transmission & Distribution Supervisory Control and Data Acquisition (SCADA) system historian; and provide a data analytics platform for Power Plant Distributed Control System (DCS) and Transmission & Distribution SCADA data.

Background/Analysis
REU’s Transmission & Distribution SCADA system data historian is antiquated and inadequate for current needs and must be replaced. REU Power Plant DCS data is currently unavailable to view, analyze, or evaluate outside of a few designated workstations that have limited capabilities.

PI Software effectively solves both problems by providing a platform for consolidating and analyzing critical datasets.

In addition to effectively solving the two complex problems noted above, sole sourcing PI Software is justified for the following reasons:

1. REU is a member of the Northern California Power Agency (NCPA) which provides shared resources, trainings, and expertise that can be utilized by staff. NCPA has multiple members, including the City of Roseville and the City of Lodi, who already utilize PI Software within their utilities. Because of the close relationships with these cities, staff can take advantage of joint training efforts, sharing of best practices and lessons learned, and direct points of contacts with sites that are very similar to REU’s. Additionally, the City of Roseville utilizes the same T3000 DCS utilized by REU, which increases the opportunities for knowledge sharing. The existing membership in NCPA provides opportunities in relation to PI Software that do not exist with other alternatives.

2. PI Software provides a complete technology solution that meets REU’s needs for data acquisition, storage, and analysis. It also reduces the demands on the City’s technical teams and simplifies future ongoing maintenance requirements. Other options were considered, but were discarded due to weak analytical features, poor industry adoption in the power industry, lacking an industry track record, or requiring additional and ongoing Information Technology development support that REU does not have.

3. The PI Software will be a key analytics component at the Power Plant and play a critical role as the OSI CHRONUS data historian replacement for REU SCADA data. PI Software has a proven track record of reliability and integration specifically within the power utilities industry. Over 1000 power utilities around the world currently rely on the PI Software.

Packet Pg. 448
Report to Redding City Council August 13, 2025
Re: 4.5(b)--Approve Sole-Source for PI System licensing with AVEVA Software LLC Page 3

4. California Independent System Operator (CAISO) connectors for PI Software are available on the market that will allow easy integration of CAISO’s Open Access SameTime Information System (OASIS) and CAISO’s Automated Dispatch System (ADS).

5. Siemens Energy provides specific tools for exporting and passing plant data from the T3000 DCS system to the PI Software data historian. PI Software supports collecting data through various connectors and from multiple data sources, which is critical to interfacing with T3000.

6. Because PI Software is widely integrated in the power industry, REU can easily find qualified external support contractors and hire personnel who already have expertise working with PI Software.

AVEVA Software, LLC is the sole provider of the PI Software. PI Software is the industry standard for operational data management platforms in the power sector which, based on the above noted considerations and benefits, would provide the best value to the City. The PI Software solution is the only viable option that will meet all of REU’s needs.

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

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

Attachments
AVEVA PI Flex Order Form
AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed
AVEVA sole provider letter 2024
Packet Pg. 449

AVEVA Flex Order Form (Universal)-v2.4-July 2024
Opportunity Number: OPP-348719
AVEVA Flex Order Form
AVEVA Contract Information:

This AVEVA Flex Order Form (“Order Form”) is a binding agreement for the Products and/or Services listed in this Order Form.

This Order Form is governed by the agreement specified below (“Agreement”):

1. ☒ The AVEVA General Terms and Conditions between City of Redding and AVEVA Software, LLC (#002127).

AVEVA Flex Order Form Term:

Effective Date of this Order Form (“Order Form Effective Date”): 31 October 2025 Order Form Expiration (“Order Form Expiration Date”): 30 October 2028 This Order Form is effective as of the Order Form Effective Date and unless terminated earlier in accordance with the terms of the Agreement, this Order Form will immediately expire on the Order Form Expiration Date (“Order Form Term”).

Party Identification:

AVEVA: AVEVA Software, LLC (“AVEVA”)
Company Registration Number (if
applicable): 47-2573795
Company Registered Address: 26561 Rancho Parkway South, Lake Forest, CA 92630-8301, United States Company Telephone Number: +1 949 727 3200
Principal Contact (Name, Email and
Phone Number):

Name: Samantha Baribeault
Email: [email protected]
Phone Number: +1 510 877 9383
CUSTOMER: City of Redding (“Customer”)
Company Registration Number (if
applicable): 94-6000401
Company Registered Address: 777 Cypress Avenue, Redding, CA, 96001, United States of America Bill-to / Invoice-to Party (Company
Name and Address): City of Redding 777 Cypress Avenue Redding CA United States of America 96001 Ship-to Address:

Company Telephone Number: +1 530.339.7350
Principal Contact (Name, Email and
Phone Number):

Name: Jeremiah McKnelly
Email: [email protected]
Phone Number: +1 530-339-7353
CONNECT Administrator (Name and
Email):

Name: Jeremiah McKnelly
Email: [email protected]
This Order Form is hereby executed by the parties.

AVEVA: Customer:

AVEVA Software, LLC City of Redding
By: By:
(Signature) (Signature)
Name: Preeti Saraogi Name:

Title: Assistant Treasurer Title:

Date: Date:

Packet Pg. 450 Attachment: AVEVA PI Flex Order Form (4.5(b)--Approve Sole-Source for PI System licensing with AVEVA Software LLC)

AVEVA Flex Order Form (Universal)-v2.4-July 2024

1. ORDER SUMMARY, PRODUCT SCHEDULES AND INVOICE SCHEDULE Section A: Order Summary
Total Flex Credit Fees: USD 413,920.80
Total Flex Credits: 23,208
AVEVA Customer FIRST Program Service
Level: Premium
Through Flex Credits, Customer has access to the entire portfolio of AVEVA’s Products on the CONNECT platform.

Customer can access a Cloud Service or download an On Premises Product via the CONNECT platform and support websites. Customer’s purchased or allocated credits will be deducted from the total number of credits (as applicable) shown in Customer’s credit balance in the CONNECT platform in accordance with the Product Rate Plan associated with the accessed or downloaded Products. The Product Rate Plan may change depending upon the Products that the Customer chooses throughout the course of the Term. Such changes will be shown in the CONNECT platform.

Appendix A sets out the agreed list of offers for Products initially selected by the Customer and their associated rate plan charges of said Products expressed in Flex Credits.

Section B: Order Details
AVEVA Flex Credits
AVEVA Product Code Description Quantity
FLEXCR-002 AVEVA Flex Credits Designated for Cloud Services 23,208 FLEXCR-001 Total AVEVA Flex Credits 23,208
Customer acknowledges and agrees that any credits designated for On Premises Product can only be applied to On Premises Products and any credits designated for Cloud Service can only be applied to Cloud Service; they are not interchangeable.

Section C: Invoice Schedule and Product Fees
AVEVA will invoice Customer for the above Flex Credits in accordance with the invoice schedule below. Customer will pay to AVEVA the fees for the agreed Flex Credits set forth in this Order Form within 30 days of the invoice date set forth below.

Top-Up Flex Credits will be charged at the rate of USD 18.51 per credit (clause 2.2(c) below applies).

Item Year 1 Year 2 Year 3 Total
Invoice Amount USD 80,736.00 USD 162,542.64 USD 170,642.16 USD 413,920.80 Invoice Date 31 October 2025 31 October 2026 31 October 2027 User(s) and User Site
Location(s)
City of Redding 777 Cypress Avenue Redding CA United States of America 96001

2. Other Terms.

2.1. Definitions. Capitalized terms used in this Order Form without definition have the meanings ascribed to them in the applicable document.
“CONNECT Administrator” means the Customer representative(s) set out in the Order Form, which, in the management of the applicable Product(s) has the right to grant access or use to any Users of such Product on behalf of Customer.
“Flex Credits” means Reward Credits, Test Credits or other electronic credits purchased by the Customer, which are then redeemed by the Customer for the use of On Premises Products or Cloud Service as the case may be. At the start of the Order Form Term, all Flex Credits for Products (whether On Premises or Cloud) purchased by the Customer as set forth in the Product Rate Plan, will be allotted in full to Customer for use throughout the entire Order Form Term. Any unused Flex Credits remaining at the end of the Order Form Term will expire and may not be carried forward to any other term or otherwise. “Product Rate Plan” means the information accessible via CONNECT that provides a Customer with their then-current list of subscribed Products and the associated rate plan charges of said Products expressed in Flex Credits;
Packet Pg. 451 Attachment: AVEVA PI Flex Order Form (4.5(b)--Approve Sole-Source for PI System licensing with AVEVA Software LLC)

AVEVA Flex Order Form (Universal)-v2.4-July 2024
“Reward Credits” means credits that AVEVA, in its sole discretion, may offer at no cost to the Customer. “Test Credits” means credits allocated to a Customer’s CONNECT Test Account. Such test account provides access to Products solely for non- production use. “Top-Up Flex Credits” means additional Flex Credits purchased by the Customer during the Order Form Term to remedy a CONNECT Account that is overdrawn in Flex Credit usage or to supplement the Customer’s Flex Credit usage.
“User(s) and User Site Location(s)” means locations set forth in this Order Form where the On Premises Products are permitted to be installed.

2.2. Credit Based Subscription Model. The Customer understands that the Products supplied in connection with this Order Form are being provided on a credit based subscription model basis, and acknowledges that:
a) The Customer’s Use of the Products is controlled and restricted by the number of Flex Credits set out in this Order Form;
b) The Customer’s initial Flex Credits as set out in this Order Form will expire at the end of the Order Form Term;
c) If Customer owes AVEVA any unpaid fees or has any issued-and-outstanding invoice(s). Customer shall pay the full amount of such unpaid fees and/or invoice(s) to AVEVA prior to purchasing Top-Up Flex Credits;
d) Where the Customer purchases Top-up Flex Credits, such Top-up Flex Credits will be purchased at the rate set out in this Order Form and such Top-up Flex Credits will expire at the end of the Order Form Term;
e) Where the Customer’s Use of the Products exceeds the number of Flex Credits or Top-Up Flex Credits purchased (“Excess Usage”), AVEVA reserves the right to: (1) suspend the Customer’s right to Use in accordance with Clause 8 of the Agreement; and (2) charge the Customer for Excess Usage at the Top-Up Flex Credits rate set out in this Order Form in accordance with Clause 20.3 of the Agreement.

2.3. Non-Cancellable and Non-Refundable. This Order Form is non-cancellable and all fees paid are nonrefundable.

2.4. Purchase Order (“PO”) Instructions.

Customer will issue one PO to AVEVA for the total amount of the Order Form. To facilitate effective PO processing, Customer is asked to adhere to the following requirements, ensuring the PO contains all the information described. Notwithstanding anything else contained herein, Customer shall remain liable for the payment of all amounts owed pursuant to this Order Form, regardless of whether or not a PO is issued.
i. Any documents requiring execution, including this Order Form, must be executed and provided at the same time as the PO is issued to AVEVA.
ii. The PO MUST reference the Order Form Number OPP-348719. iii. The PO MUST state the following: “The AVEVA General Terms and Conditions reference 002127 effective from 31 October 2025 shall regulate the work performed under this Purchase Order and will supersede the terms attached to this Purchase Order.” iv. Please issue the PO to: AVEVA Software, LLC, 26561 Rancho Parkway South, Lake Forest, CA 92630-8301, United States.
v. For processing, please send POs to: [email protected] with copy to:
[email protected].

Packet Pg. 452 Attachment: AVEVA PI Flex Order Form (4.5(b)--Approve Sole-Source for PI System licensing with AVEVA Software LLC)

AVEVA Flex Order Form (Universal)-v2.4-July 2024
Appendix A
Product Rate Plans for Initially Selected AVEVA Flex Offerings AVEVA Cloud Service
AVEVA Product Code AVEVA Product Name Commercial Unit Initial Quantity Credit Rate per
User/Unit/ Pack
per Month
Provision Upon
Sale
FLEX-PIDI-016 AVEVA PI Data Infrastructure 8K Per Server 1 242 Yes FLEX-PIDI-277 AVEVA PI Vision - 5 Users Monthly Fixed Charge 3 48 Yes FLEX-PIDI-051 AVEVA PI System Connectivity Pack Monthly Fixed Charge 1 0 Yes FLEX-PIDI-335 AVEVA PI Server - Test 8K Monthly Fixed Charge 1 0 Yes FLEX-PIDI-053 AVEVA PI Client Pack 5 Monthly Fixed Charge 1 20 Yes FLEX-PIDI-066 AVEVA Add-ons HA Node 8K Monthly Fixed Charge 1 90 Yes AVEVA Product Code AVEVA Product Name Commercial Unit Credit Rate per Day
Credit Rate per
Month
Provision
Upon Sale
FLEX-ADH-001
CONNECT data services – V3
Includes 200 Total Streams
Accessed (TSA) per Day
For TSA up to 200 per Day 0 n/a
Yes
For TSA from 201 to 5,000 per
Day 0.00182 n/a
For TSA from 5,001 to 20,000 per
Day 0.00101 n/a
For TSA from 20,001 to 100,000
per Day 0.00062 n/a
For TSA from 100,001 to 500,000
per Day 0.00046 n/a
For TSA over 500,000 per Day 0.00044 n/a
AVEVA Product Code AVEVA Product Name Commercial Unit Credit Rate per Day
Credit Rate per
Month
Provision
Upon Sale
FLEX-CVS-001 CONNECT visualization services
Includes 5 monthly active users
From 0 to 5
Monthly Active Users n/a
0 per user, per
month
Yes
From 6 to 500
Monthly Active Users n/a
5 per user, per
month
From 501 to 1,000
Monthly Active Users n/a
4 per user, per
month
Over 1,000
Monthly Active Users n/a
3 per user, per
month
Packet Pg. 453 Attachment: AVEVA PI Flex Order Form (4.5(b)--Approve Sole-Source for PI System licensing with AVEVA Software LLC)

AVEVA Flex Order Form (Universal)-v2.4-July 2024
Appendix B
Projected Product Use for Years 2-3
AVEVA Cloud Service
AVEVA Product Code AVEVA Product Name Commercial Unit Initial Quantity Credit Rate per
User/Unit/ Pack
per Month
Provision Upon
Sale
FLEX-PIDI-020 AVEVA PI Data Infrastructure 20K Per Server 1 380 No FLEX-PIDI-277 AVEVA PI Vision - 5 Users Monthly Fixed Charge 3 48 Yes FLEX-PIDI-277 AVEVA PI Vision - 5 Users Monthly Fixed Charge 3 48 No FLEX-PIDI-051 AVEVA PI System Connectivity Pack Monthly Fixed Charge 1 0 No FLEX-PIDI-339 AVEVA PI Server - Test 20K Monthly Fixed Charge 1 0 No FLEX-PIDI-054 AVEVA PI Client Pack 10 Monthly Fixed Charge 1 38 No FLEX-PIDI-070 AVEVA Add-ons HA Node 20K Monthly Fixed Charge 1 141 No FLEX-PIDI-112 AVEVA Add-ons PI System Access (PSA)
20K Monthly Fixed Charge 1 112 No
AVEVA Product Code AVEVA Product Name Commercial Unit Credit Rate per Day
Credit Rate per
Month
Provision
Upon Sale
FLEX-ADH-001
CONNECT data services – V3
Includes 200 Total Streams
Accessed (TSA) per Day
For TSA up to 200 per Day 0 n/a
Yes
For TSA from 201 to 5,000 per
Day 0.00182 n/a
For TSA from 5,001 to 20,000 per
Day 0.00101 n/a
For TSA from 20,001 to 100,000
per Day 0.00062 n/a
For TSA from 100,001 to 500,000
per Day 0.00046 n/a
For TSA over 500,000 per Day 0.00044 n/a
AVEVA Product Code AVEVA Product Name Commercial Unit Credit Rate per Day
Credit Rate per
Month
Provision
Upon Sale
FLEX-CVS-001 CONNECT visualization services
Includes 5 monthly active users
From 0 to 5
Monthly Active Users n/a
0 per user, per
month
Yes
From 6 to 500
Monthly Active Users n/a
5 per user, per
month
From 501 to 1,000
Monthly Active Users n/a
4 per user, per
month
Over 1,000
Monthly Active Users n/a
3 per user, per
month
Packet Pg. 454 Attachment: AVEVA PI Flex Order Form (4.5(b)--Approve Sole-Source for PI System licensing with AVEVA Software LLC) US-v5.0-15 September 2023 Page 1 of 14
GTC#: 002127

AVEVA GENERAL TERMS AND CONDITIONS
This Agreement is entered into this 19th day of August 2025 (the “Effective Date”) by and between AVEVA Software, LLC (“AVEVA”) and the individual or entity that executes this Agreement (the “Customer”) (collectively, the “Parties” and each, a “Party”). The Parties are entering into this Agreement for the purpose of enabling the Customer and its Affiliates to purchase Products, Support Services and Professional Services from AVEVA and its Affiliates, and to set out the general terms and conditions that apply to such purchases. Unless otherwise provided, all capitalised terms used in this Agreement have the meaning set forth in the Definitions Appendix of this Agreement.

In the event a Customer Affiliate intends to adopt this Agreement, the Customer must provide the Customer Affiliate’s company name, address, contact information for a lead contact person and such other information AVEVA may reasonably request. Once accepted, a Customer Affiliate may place orders under this Agreement. If a Customer Affiliate no longer meets the ownership requirements set out in the Agreement, Customer or Customer Affiliate shall promptly notify AVEVA in writing. For purposes of the foregoing, references to Customer in this Agreement shall include the relevant Customer Affiliate, and references to AVEVA shall include the relevant AVEVA Affiliate.

IN WITNESS WHEREOF, AVEVA and the Customer, each through its duly authorized representative, hereby agree to the terms and conditions of this Agreement.

AVEVA: Customer:

AVEVA Software, LLC City of Redding
By: By:
(Signature) (Signature)
Name: Preeti Saraogi Name:

Title: Assistant Treasurer Title:

Date: Date:

Notice Address: Notice Address:
26561 Rancho Parkway South
Lake Forest, CA 92630-8301
United States of America
City of Redding
777 Cypress Avenue,
Redding CA 96001
United States of America
Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 11 August 2025
Packet Pg. 455 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 2 of 14

1. Interpretation. Unless the context clearly requires otherwise, references to “Agreement” mean, and this Agreement consists of, all of the following: (i) these General Terms and Conditions and any Appendices and Addenda attached hereto, (ii) any Order Form; and (iii) any and all AVEVA policy documents or support manuals referenced in any of the foregoing. In the event of a conflict between the provisions in any documents forming part of this Agreement, the documents shall be given precedence in the following descending order: (1) the provisions of these General Terms and Conditions, (2) the provisions of any Appendix or Addenda to this Agreement; and (3) the provisions of any Order Form. Unless otherwise stated, “including” and “e.g.” are not exclusive or limiting and will be deemed followed by “without limitation”.

2. Product License; Right to Access and Use

2.1 The following license terms shall apply to any On Premises Product: (i) conditioned upon the Customer complying with the terms and conditions of this Agreement (including payment of the applicable Charges), AVEVA hereby grants to the Customer, for the license term specified in such Order Form or otherwise in CONNECT, formerly AVEVA Connect, a nontransferable, non- sublicensable, non-exclusive license to Use the On Premises Product only on the Customer Premises in accordance with this Agreement; and (ii) this license shall not extend to any Customer Affiliate unless such Affiliate is specifically named on the applicable Order Form.

2.2 The following right to use shall apply to any Cloud Service: (i) conditioned upon the Customer complying with the terms and conditions of this Agreement (including payment of the applicable Charges), AVEVA hereby grants to the Customer, for the subscription period specified in such Order Form or otherwise in CONNECT, the right to access and use the Cloud Service (through CONNECT) solely for internal business purposes and otherwise in accordance with this Agreement; and (ii) the Customer shall not make CONNECT or the Cloud Service accessible or available for Use by any person or entity other than the Customer’s Users and Customer Affiliates.

3. General Use of the Products. Unless expressly required by Applicable Law without the possibility of contractual waiver, the Customer shall not:

3.1 reverse engineer, reproduce, decompile, recompile, disassemble, merge, modify, adapt or translate a Product or any component thereof, or create derivative works based on a Product, nor allow any third party to do the same;

3.2 work around any technical limitations in a Product or Use a Product in any way that exceeds the Product’s technical or usage limitations;

3.3 make more copies of a Product or documentation than is permitted under this Agreement or Use back-up copies of a Product for purposes other than restoring the Customer’s Use of the Product following a failure of that Product or the hardware that it is installed upon (including for purposes of training, testing or as a hot standby or caching server);

3.4 transfer, assign, sublicense, or rent a Product or any part thereof to any other person or entity, or permit timesharing or service bureau Use of, or commercially exploit a Product or any part thereof, in each case except in accordance with this Agreement;

3.5 incorporate a Product into anything not provided by AVEVA, except (i) for incorporation of a Product or documentation with application program interfaces that AVEVA makes publicly available for such Product or documentation, provided that such use is performed by the Customer for the Customer’s benefit only, (ii) to the extent expressly permitted, to customize a Product in accordance with the accompanying documentation, or (iii) as expressly permitted under a separate written agreement with AVEVA;

3.6 perform any benchmark testing or any of the following security testing of any Product without AVEVA’s prior written consent: network discovery, port and service identification, vulnerability scanning, password cracking, remote access testing, or penetration testing;

3.7 transfer a Product to another location or to other equipment without the prior written consent of AVEVA;

3.8 use a Product to store or transmit infringing, libellous, or otherwise unlawful or tortious material or to store or transmit material in breach of Applicable Laws or third party rights.

4. AVEVA Support Services

4.1 Conditioned upon the Customer complying with the terms and conditions of this Agreement (including payment of the applicable Charges), AVEVA shall provide the Support Services set out in the Order Form to the Customer.

4.2 Unless otherwise agreed in writing by AVEVA, AVEVA has no obligation to provide Support Services in respect of (i) Third Party Products or Resale Items; (ii) AVEVA software or hardware supplied by, or repaired by, any agent, distributor, reseller or other third party not authorized by AVEVA to supply or repair such AVEVA software or hardware; (iii) planning, installation, testing, and documentation of expansions, modifications or software upgrades of custom applications; (iv) hardware or software identified as retired phase or due to become retired under the AVEVA Software End of Life Policy (currently available at https://www.aveva.com/en/legal/policies-compliance/) (“Software EOL Policy”); (v) any version of a Product that is not the most up-to-date version of such Product; and (vi) any Pre-Production Product, Test Accounts, Partner Accounts or Preview. AVEVA reserves the right to charge the Customer additional Charges in respect of any Support Services provided for the matters set out in this Clause 4.2.

4.3 The Customer acknowledges that the Support Services are of an advisory nature and AVEVA provides no warranty, representation or undertaking that the Support Services shall achieve a specific business result.

Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 456 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 3 of 14

4.4 Without prejudice to the Customer’s statutory rights, AVEVA warrants that any parts for hardware which are supplied by AVEVA in performing the Support Services under this Agreement shall be free from material defects for a period of sixty (60) calendar days following Delivery of such parts. The Customer’s sole and exclusive remedy and AVEVA’s entire liability for a breach of this Clause 4.4 shall be to repair or replace the parts provided for the hardware by AVEVA.

4.5 To the extent AVEVA is contractually permitted to do so, it shall pass-through to the Customer any warranties from the original vendor and any upgrades, patches, service packs, or corrective fixes which are supplied for any Third Party Product while providing the Support Services under this Agreement. AVEVA shall not be responsible for any issues or defects with respect to any Third Party Products.

5. Charges; Expenses

5.1 The Customer shall pay the Charges for the Products, Support Services and Professional Services as set out in the Order Form.

5.2 In addition to the Charges set out in the Order Form, the Customer acknowledges that: (i) time spent providing the Professional Services or Support Services by AVEVA Personnel during hours outside of Normal Working Hours shall be charged by AVEVA to the Customer at the Overtime Rate; (ii) Standby Time shall be charged by AVEVA to the Customer whether or not any AVEVA Personnel are physically present at the Customer Premises, and if such Standby Time is outside of Normal Working Hours, the Customer shall be charged for such Standby Time at the Overtime Rate; (iii) all Support Services and Professional Services provided on the Customer Premises shall be charged to the Customer at the rates set forth in the Order Form, subject to the following: a minimum of four (4) hours will be charged by AVEVA to the Customer where hourly rates have been agreed with the Customer, and a minimum of one (1) day will be charged by AVEVA where daily rates have been agreed with the Customer; (iv) unless otherwise agreed in writing by AVEVA, any part of any hardware supplied by AVEVA that is identified as requiring replacement during the provision of the Support Services and Professional Services shall be charged by AVEVA to the Customer at the price notified by AVEVA to the Customer; and (v) if AVEVA agrees to provide additional Support Services or Professional Services to the Customer as result of any maintenance or repair work performed on any hardware by the Customer or any third party appointed by the Customer, AVEVA shall charge the Customer for such additional Support Services or Professional Services at the rates set forth in the Order Form.

5.3 Without prejudice to AVEVA’s other rights and remedies under this Agreement or at law, if AVEVA cannot provide the Support Services or Professional Services in whole or in part due to a failure by the Customer to perform its obligations, then AVEVA may charge the Customer for any reasonable costs or other amounts that AVEVA may incur from such Customer failure, including the time of the affected AVEVA Personnel at AVEVA’s then-standard rates.

5.4 Except as otherwise agreed in writing by Customer and AVEVA, Customer shall reimburse AVEVA for expenses incurred by AVEVA in the provision of the Support Services and Professional Services, including reasonable travel and living costs (including the cost of hotels, meals, and transport) of AVEVA Personnel engaged in the provision of the Support Services and Professional Services at the Customer Premises.

6. Invoicing and Payment

6.1 Unless otherwise agreed in the Order Form, the Customer shall pay the Charges set out in an invoice within thirty (30) calendar days from the date of such invoice and all Charges shall be in the currency identified in the Order Form. Customer shall pay a late charge of one and one-half percent (1.5%) (or the maximum rate permitted by law, if lower) per month above the base rate of the Federal Reserve on all payments which are not paid when due. Unless otherwise agreed by AVEVA in writing, the Charges set out in the Order Form shall be non-refundable, non-cancellable and non-contingent.

6.2 Without prejudice to any other rights or remedies available to AVEVA under this Agreement or at law if the Customer breaches any of its obligations to pay the Charges more than twice in any twelve (12) month period, or in AVEVA’s reasonable opinion, there is a material adverse change in the Customer’s financial condition, then AVEVA may issue an invoice to the Customer prior to the supply of the Products or the provision of the Support Services or Professional Services and any Charges set out in such invoice shall be due on the date of such invoice.

6.3 The Charges do not include taxes and, unless otherwise set out in the Order Form, the Customer shall pay all sales, use, value-added, gross receipt, stamp duty, stamp tax, goods and services tax, and other similar taxes (“Transaction Taxes”) imposed by Applicable Laws on the Products, Support Services and Professional Services and associated with this Agreement, except for those taxes based on AVEVA’s income. If Customer is exempt from paying a Transaction Tax, the Customer shall provide AVEVA with a written confirmation from the applicable tax authority of such valid Transaction Tax exemption at least twenty (20) calendar days before the due date for payment of the relevant invoice. In addition, Customer shall, on at least an annual basis and upon reasonable request from AVEVA, update or re-confirm such tax-exempt status. If AVEVA does not collect the required Transaction Taxes from Customer but is required to remit such Transaction Taxes to any taxing authority, the Customer shall reimburse AVEVA for (i) all such Transaction Taxes; and (ii) any accrued penalties and interest charges incurred by AVEVA where the failure to timely collect and remit was not due to AVEVA’s own default. Without prejudice to AVEVA’s other rights or remedies at law or under this Agreement, AVEVA reserves the right to invoice the Customer for Transaction Taxes if the Customer fails to provide the written confirmation of its tax-exempt status in accordance with this Clause 6.3. If the Customer is required by Applicable Laws to make any income tax withholding from the Charges under this Agreement, Customer will (i) withhold the legally required amount from payment; (ii) remit the withheld tax to the applicable taxing authority; and (iii) within sixty (60) days Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 457 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 4 of 14
of payment, deliver to AVEVA original documentation or a certified copy evidencing remittance of withheld tax. If Customer does not provide evidence of payment of withheld taxes, Customer will reimburse AVEVA for the tax withheld from payment to AVEVA within 60 days.

7. Pre-Production Product or Preview & Cloud Test and Partner Accounts; Resale Items

7.1 AVEVA may make a Pre-Production Product or Preview available to the Customer solely for the Customer’s: (i) internal non-commercial purposes, non-production purposes, including demonstration, training, beta-testing and academic Use; (ii) evaluation of the Pre-Production Product or Preview; and (iii) providing feedback to AVEVA about such Pre-Production Product or Preview. Unless otherwise agreed in writing with AVEVA, the Customer shall not Use the Pre-Production Product or Preview for any other purpose (including in a production environment for commercial purposes). AVEVA reserves the right to revoke or suspend the Customer’s Use of or access to the Pre-Production Product or Preview at any time and without notice.

7.2 If the Order Form states that the Customer’s access to CONNECT to receive the Cloud Services shall be a Test Account, then the Customer’s right of use shall be limited to a right for the Customer to Use the Cloud Services solely for testing of the Cloud Service.

7.3 If the Order Form states that the Customer’s access to CONNECT to receive the Cloud Services shall be a Partner Account, then the Customer’s right of use shall be limited to a right for the Customer to Use the Cloud Services solely to support the testing, development, promotion and sale of the Cloud Service.

7.4 All Test Accounts, Partner Accounts, Pre-Production Products, and Previews are provided “AS IS” and AVEVA hereby disclaims any and all liability, Damages, or obligation relating to the Test Accounts, Partner Accounts, Pre-Production Product or Preview and, without prejudice to the foregoing, AVEVA: (i) has no obligation to indemnify or defend the Customer for any Claim by any third party arising from or related to the Test Accounts, Partner Accounts, Pre-Production Product or Preview; (ii) hereby disclaims all warranties, express or implied, for the Test Accounts, Partner Accounts, Pre-Production Product or Preview; and (iii) shall not provide Support Services or any Service Level commitments for the Test Accounts, Partner Accounts, PreProduction Product or Preview. If AVEVA provides the Customer with any Pre-Production Products or Previews identified as trial or demo software, the Customer shall have thirty (30) calendar days to use and evaluate such trial software, unless otherwise stated in the Order Form.

7.5 The Customer acknowledges that Resale Items may be provided to the Customer and that Resale Items: (i) are not Products, Support Services or Professional Services supplied or provided under this Agreement; (ii) may be subject to terms and conditions with third parties who are providing the Resale Items and to which the Customer agrees to be bound; and (iii) are received by the Customer solely at the Customer’s own risk and without liability to AVEVA.

8. AVEVA’s Right of Suspension. AVEVA may, in its sole discretion and without prior notice, suspend or limit the Customer’s Use (or require the Customer to suspend or limit its Use) of the Products, Support Services and/or Professional Services, or any portion thereof, without incurring any liability to the Customer if: (i) AVEVA experiences or reasonably believes it will experience a security threat or system failure that endangers the integrity of AVEVA’s internal systems; (ii) AVEVA is directed to do so by any law enforcement or regulatory agency; (iii) the continued performance of its obligations under this Agreement could result in AVEVA being in breach of Trade Controls or other Applicable Laws; (iv) AVEVA reasonably believes the Customer’s Use of the Products amounts to excess usage; or (v) the Customer fails to pay the Charges. If AVEVA suspends or limits Customer’s Use (or requires Customer to suspend or limit its Use) of the Product in accordance with any of the foregoing subclauses (i) through (iv), then AVEVA shall use commercially reasonable efforts to restore such Use as soon as reasonably practicable.

9. Customer Obligations

9.1 The Customer shall: (i) cooperate with AVEVA in good faith to enable AVEVA’s provision of the Products, Support Services and Professional Services, including providing AVEVA with timely access to data, information, and Customer Personnel; (ii) if any Support Services or Professional Services are to be provided at the Customer Premises, provide AVEVA Personnel with all necessary access to such Customer Premises on a without charge basis, including access to the Customer’s information technology and telecommunications systems and any other facilities that are necessary for AVEVA to provide the Support Services or Professional Services; (iii) ensure that Customer’s information technology and telecommunications systems comply with relevant specifications and requirements that may be provided by AVEVA from time to time; (iv) use commercially reasonable efforts to prevent any unauthorized Use of or access to the Products, and upon becoming aware of such unauthorized Use or access, promptly notify AVEVA in writing of such Use or access; and (v) obtain and maintain all necessary licenses, consents, and authorizations to allow AVEVA to supply the Products and provide the Support Services and Professional Services to the Customer, and for the Customer to Use the Products, receive the Support Services and Professional Services or share Customer Content.

9.2 The Customer agrees that it is responsible for use of the Products by Users and Customer’s Affiliates and shall make all Users and Customer Affiliates aware of, and ensure that they comply with, the terms and conditions of this Agreement and AVEVA’s Acceptable Use Policy. The Customer will be liable, jointly and severally with any User or Customer Affiliate for all acts or omissions of such individual or entity, and any act or omission of such individual or entity that would be a breach of this Agreement if it were an act or omission of the Customer will constitute a breach of this Agreement by the Customer.

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9.3 The Customer shall (i) not allow any User Credentials to be used by more than one individual User or Machine; and (ii) ensure that the User Credentials are kept confidential and secure. The Customer (and not AVEVA) shall be responsible for any unauthorized access to any of the Products through the misuse of the Customer’s User Credentials.

9.4 AVEVA shall not be in breach of this Agreement and shall not be liable to the Customer for failure to perform its obligations under this Agreement if, and to the extent that, such failure (i) results from the Customer failing to perform any of its obligations under this Agreement; or (ii) is caused by any negligent, tortious or unlawful act or omission of the Customer.

10. Data Centre Locations. AVEVA may host CONNECT and provide the Cloud Services for the Customer to Use the Cloud Service from such centres and locations as AVEVA may decide in its absolute discretion (including as AVEVA may decide to be necessary for any redundancy or backup purposes).

11. Health and Safety. The Customer shall ensure the Customer Premises are a safe environment for, and shall take all reasonable measures to protect the health and safety of, AVEVA Personnel engaged in the provision of the Support Services and Professional Services at the Customer Premises. AVEVA shall comply with the reasonable safety requirements, polices, procedures and rules of the Customer, where reasonably applicable, in respect of the Customer Premises provided that such safety requirements are provided to AVEVA at least fourteen (14) calendar days prior to such AVEVA Personnel arriving at the Customer Premises.

12. Regulatory Compliance

12.1 Each Party will comply with Applicable Laws in connection with the execution and performance of this Agreement. The Customer acknowledges that the Customer (and not AVEVA) is solely responsible for ensuring the Customer’s compliance with all Applicable Laws.

12.2 Without limiting the generality of the foregoing:

12.2.1 each Party represents and undertakes that in connection with the execution and performance of this Agreement: (i) it will not, and will ensure that its authorized representatives and associated persons will not, directly or indirectly engage in or abet any activity, practice or conduct, which would constitute a breach of or an offense under applicable anti-bribery laws and regulations, including the U.K. Bribery Act 2010, the U.S. Foreign Corrupt Practices Act, any amendments and implementing regulations to such statutes, and any local anti-bribery laws and regulations (collectively, the “Anti-Bribery Laws”); (ii) it has and will maintain in place adequate procedures designed to prevent any authorized representatives and associated persons from undertaking any conduct that would give rise to a breach of or an offense under Anti-Bribery Laws; and (iii) from time to time at the reasonable request of the other Party, it will confirm in writing that it has complied with its undertakings under the foregoing subclauses (i) and (ii) and will provide any information reasonably requested by the other Party to confirm such compliance;

12.2.2 the Customer represents and undertakes that in connection with the performance of this Agreement, it will comply with all applicable Export Control Laws and Sanctions Laws in all respects related to the performance of this Agreement and each Order Form;

12.2.3 the Customer represents and undertakes that the Products, Support Services and Professional Services shall not be used: (i) in any country or territory subject to an export, import, financial or investment embargo under Export Control Laws or Sanctions Laws; (ii) in connection with any prohibited end use described under Export Control Laws or Sanctions Laws; (iii) by or for the benefit of any individual or entity denied party list maintained under Export Control Laws or Sanctions Laws, or any entity owned or controlled by such individual or entity; (iv) for any other use requiring an authorization under Export Control Laws or Sanctions Laws where such authorization has not been obtained; (v) in any manner, that could result in AVEVA being in breach of Export Control Laws or Sanctions Laws, and Customer represents and undertakes not to re-export or transfer any Products, Support Services or Professional Services in breach of any Export Control Laws or Sanctions Laws;

12.2.4 the Customer shall comply with AVEVA’s Business Conduct Guidelines located at https://www.aveva.com/;

12.2.5 neither Party shall do anything that could reasonably prejudice the other Party’s compliance with all Applicable Laws relating to anti-slavery and human trafficking.

12.3 AVEVA may, in its absolute discretion and without prejudice to its other rights and remedies under this Agreement or at law, revoke or suspend any of the rights granted under this Agreement if AVEVA believes, in its reasonable opinion, that the Customer is not in compliance with this Clause 12.

12.4 The Customer agrees that, within fourteen (14) calendar days of receipt of a written request from AVEVA, it will provide to AVEVA, in writing, the names of any and all of Customer’s Users and Customer Affiliates in order for AVEVA to verify that the Customer is in compliance with this Clause 12.

13. Customer Content

13.1 During the Term, the Customer hereby grants and agrees to grant to AVEVA and its Affiliates a global, royaltyfree, sub-licensable, non-exclusive license to use the Customer Content in order to: (i) provide the Products, Support Services, and Professional Services to the Customer; (ii) develop, improve, modify and optimize the Products, Support Services and Professional Services; and (iii) fulfil AVEVA’s obligations under this Agreement, including making necessary disclosures and obtaining all licenses, permits, approvals, or consents required in connection with any Customer Content that is regulated content.

Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 459 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 6 of 14

13.2 AVEVA may share Customer Content only to the extent that the Customer Content is aggregated and anonymized such that the Customer cannot be identified from the Customer Content.

13.3 The Customer warrants and represents that it owns or has the right to use all Intellectual Property Rights in and to the Customer Content, in connection with AVEVA’s Products, Support Services and Professional Services.

13.4 The Customer acknowledges that to the extent that the Customer discloses or transmits Customer Content to a third party (including by allowing a third party to access Customer Content as a User), AVEVA shall not be responsible for the security, integrity or confidentiality of such Customer Content as disclosed or transmitted to such third party, notwithstanding anything to the contrary herein.

13.5 The Customer shall (i) be responsible for the accuracy, quality, integrity, legality, reliability, and appropriateness of the Customer Content, (ii) not include in any Customer Content any sensitive or special categories of Personal Data that would subject AVEVA to specific data security or data protection obligations, or other governmental regulation, (iii) ensure that the Customer Content is compatible with the application program interfaces in the Products, and (iv) be responsible for any security vulnerabilities, and the consequences of such security vulnerabilities, arising from the Customer Content, including any viruses, Trojan horses, worms or other harmful programming routines contained in the Customer Content. AVEVA may, in its absolute discretion and without prior notice to the Customer, delete any Customer Content that AVEVA identifies as containing any such security vulnerabilities.

13.6 The Customer acknowledges and agrees that the Cloud Services are not intended to act as a document or data retention system for the Customer and that the Cloud Service have limited capacity to store Customer’s data (including the Customer Content) and the Customer must store and backup such data (including the Customer Content) in a separate system; and the Cloud Services may be subject to transmission errors, delivery failures, delays and other limitations inherent in the use of the internet and electronic communication.

14. Intellectual Property

14.1 All Intellectual Property Rights in and to the Products, Support Services and Professional Services, documentation and Deliverables, including techniques, knowledge or processes associated with design contributions, related knowledge or processes, and any and all updates, upgrades, modifications, enhancements, and derivative works of the foregoing, shall belong to, and vest in, AVEVA or, as applicable, its licensors, and the Customer hereby assigns and agrees to assign to AVEVA any and all Intellectual Property Rights that it might otherwise have in any of the foregoing. AVEVA retains all goodwill in, and the Customer has no rights in and to, any trade name, trademark, service mark, logo or other designation owned or controlled by AVEVA, whether registered or unregistered, including “AVEVA”, the AVEVA logo, “Wonderware” and “InTouch”.

14.2 If the Customer provides to AVEVA any suggestions, enhancement requests, recommendations, or other feedback related to the Products, Support Services, Professional Services, documentation or Deliverables (collectively, “Feedback”), AVEVA shall have and Customer hereby assigns and agrees to assign to AVEVA all right, title and interest, including all Intellectual Property Rights, in and to the Feedback. AVEVA shall have the unrestricted royalty-free right to use and incorporate into any of its products and services (including the Products, Support Services and Professional Services), documentation, and Deliverables, any and all Feedback. Furthermore, the Customer acknowledges and agrees that nothing herein shall limit AVEVA’s rights to use its general knowledge, skills and experience, and any ideas, concepts, know-how and techniques, related to or derived from the performance of its obligations under this Agreement for any purpose.

15. Indemnification

15.1 Indemnification by AVEVA. Subject to the provisions of Clauses 15.3 and 22, AVEVA shall defend and indemnify the Customer against any Claims brought against the Customer by any third party alleging that Customer’s Use of the Products or receipt of the Support Services and Professional Services in accordance with the terms and conditions of this Agreement infringes the Intellectual Property Rights of a third party (“Third Party IP Claim”), provided this indemnity shall not apply if the alleged infringement results from: (i) Use of the Products or receipt of the Support Services and Professional Services in conjunction or combination with any other software, services, product, data, item, or apparatus not provided by AVEVA to the Customer under this Agreement; (ii) anything the Customer provides or designs, including configurations, instructions, or specifications, and any Products or Support Services and Professional Services that were provided by AVEVA pursuant to Customer’s designs, drawings, or specifications; (iii) a modification of a Product or the Support Services and Professional Services by the Customer or any third party; (iv) the Customer’s failure to use the latest release or version of a Product or the Support Services and Professional Services (including any corrections or enhancements) where such use would have prevented such Claim; (v) AVEVA’s compliance with designs or specifications of a published standard; (vi) the Customer’s Use, storage, distribution, reproduction, or maintenance of the Products or the Support Services and Professional Services in breach of this Agreement; or (vii) any other breach of this Agreement by the Customer.

15.1.1 If AVEVA believes, in its reasonable opinion, that a Third Party IP Claim could or is likely to be made, or a Third Party IP Claim has been made, then AVEVA may, in its absolute discretion and at AVEVA’s own cost (i) procure for the Customer the right to continue using the Product or receiving the Support Services and/or Professional Services under the terms of this Agreement; (ii) replace or modify the Product or the Support Services and/or Professional Services without a material decrease in functionality; or (iii) if either (i) or (ii) are not reasonably available, revoke any license in this Agreement for Products or Support Services and Professional Services that are the subject of such Third Party IP Claim. If AVEVA releases any Updates to Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 460 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 7 of 14
the Products to avoid or mitigate any such Third Party IP Claim, then the Customer shall install such Updates as soon as reasonably practicable and in no event more than seven (7) calendar days after receiving notice that such Updates have been issued by AVEVA.

15.2 Indemnification by the Customer. Subject to the provisions of Clause 15.3 , the Customer shall defend and indemnify AVEVA and the AVEVA Personnel (collectively, the “AVEVA Indemnitees”) against Claims brought against the AVEVA Indemnitees by any third party arising from or related to: (i) the Customer’s use of the Products or the Support Services, and /or Professional Services in breach of any Applicable Laws or the terms of this Agreement; (ii) any Customer Content, including any allegation that any Customer Content infringes the Intellectual Property Rights of a third party; (iii) AVEVA’s use of or access to the Customer’s information technology and telecommunications systems or the Customer Premises in connection with the provision of Products, Support Services and Professional Services under this Agreement; and (iv) Customer’s Use of any of Product, Support Service or Professional Service in any application or situation where the failure of the Product, Support Service or Professional Service could lead to death or serious bodily injury to any person or to severe physical or environmental damage.

15.3 Indemnification Conduct of Claim. The indemnification obligations under this Clause 15 are conditional upon:
(i) the Party against whom a Claim is brought timely notifying the other Party in writing of any such Claim; (ii) the Party who is obligated to defend a Claim having the right to fully control the defense of such Claim; (iii) the Party against whom a Claim is brought reasonably cooperating in the defense of such Claim; and (iv) in the case of a Third Party IP Claim, the Customer complying with AVEVA’s direction to cease any Use of the Products or Support Services and Professional Services which, in AVEVA’s reasonable opinion, may constitute an infringement. Neither Party shall settle any Claim in a manner that includes a financial or specific performance obligation on or admission of liability by the other Party without such Party’s prior written consent. The Party against whom a Claim is brought may appear and participate in the defense, at its own expense, through counsel reasonably acceptable to the Party obligated to defend such Claim, provided that the indemnifying party shall retain full control over the defense of the Claim. Without prejudice to AVEVA’s rights under Clause 15.1.1, neither Party shall undertake any action in response to any actual or alleged Third Party IP Claim that is prejudicial to the other Party’s rights.

16. Warranties, Representations and Undertakings

16.1 Authority. Each Party represents, warrants and undertakes that it has full capacity and authority and all necessary consents to enter into and to perform this Agreement and to grant the rights and licenses set forth in this Agreement, and that this Agreement is executed by its duly authorized representative and represents a binding commitment on it.

16.2 Limited Warranty for On-Premises Products. AVEVA warrants for a period of ninety (90) days following Delivery, that the On-Premises Product shall function in accordance with the accompanying documentation in all material respects.

This warranty shall automatically become null and void if the warranty claim arises out of any modification or repair to the OnPremises Product that was made other than as expressly permitted by this Agreement. For any breach of this warranty, the Customer’s exclusive remedy, and AVEVA’s entire liability, shall be that AVEVA will, at AVEVA’s option: (a) promptly correct any On-Premises Product that fails to meet this limited warranty; (b) provide the Customer with a reasonable procedure to circumvent the nonconformity; or (c) refund the license fees paid by the Customer for the non-conforming On-Premises Product upon the Customer’s return of the same to AVEVA.

16.3 Limited Support Services Warranty. AVEVA will perform the Support Services in a professional manner. This warranty will be in effect for a period of thirty (30) days from the date of completion of the Support Service. For any breach of this warranty, the Customer’s exclusive remedy, and AVEVA’s entire liability, shall be the reperformance of the Support Services.

16.4 Limited Cloud Services Warranty. AVEVA warrants that during the Term of each applicable Order Form: (1) the Cloud Service will perform materially in accordance with the accompanying documentation; (2) the functionality of the Cloud Service will not be materially decreased; and (3) to the best of AVEVA’s knowledge, the Cloud Service does not contain, and AVEVA will not knowingly introduce, any Malicious Code.

17. Personal Data

17.1 Compliance with Laws..AVEVA and Customer shall, within the scope of this Agreement and in the context of their respective provision and use of the Products, Support Services and Professional Services, be responsible for complying with their obligations under Applicable Data Protection Legislation in their Processing of Personal Data.

17.2 AVEVA’s Processing of Account Personal Data..AVEVA Processes Account Personal Data for the following purposes:

17.2.1 AVEVA collects, uses and retains Account Personal Data (a) to manage the relationship with Customer; (b) to carry out AVEVA’s core business operations, such as accounting filing taxes and managing the business relationship with Customer; (c) to perform identity verification; (d) for its marketing activities, unless AVEVA has been otherwise specifically instructed by the relevant individuals; (e) to detect, prevent, or investigate security incidents, fraud, and other abuse or misuse of Products; (f) comply with AVEVA’s legal and regulatory obligations; and (g) as otherwise not prohibited or permitted, as the case may be, under Applicable Data Protection Legislation and the Agreement; and

17.2.2 AVEVA collects, uses and retains Account Personal Data through AVEVA’s various technical support or customer interaction channels in order to provide Support Services and Professional Services. For the avoidance of doubt, AVEVA does not Process Account Personal Data on behalf of Customer.

Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 461 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 8 of 14

17.3 AVEVA’s Processing of Customer Personal Data on behalf of Customer..In the event that AVEVA Processes or is determined by any court or governmental authority with responsibility for data protection to Process any Customer Personal Data on behalf of the Customer, the Data Processing Addendum shall apply to such Processing of Customer Personal Data.

17.4 The Customer undertakes, represents and warrants that it has the right under Applicable Data Protection Legislation to share with AVEVA any and all Personal Data provided by the Customer to AVEVA.

18. Record Keeping. During the Term and for a period of five (5) years thereafter, the Customer shall maintain complete and accurate records documenting the location and Use of the Products and the receipt of the Support Services and Professional Services in a manner sufficient to permit AVEVA to conduct an audit in accordance with Clause 19 of this Agreement. The Customer acknowledges that AVEVA may collect, process and maintain Usage Metrics and other information relating to Use of the Products and receipt of the Support Services and Professional Services, including records of Users and from where they logged on to CONNECT: (i) for AVEVA’s own internal purposes; (ii) in order to verify the Customer’s compliance with this Agreement; (iii) to comply with Applicable Laws; and (iv) to prevent fraud.

19. Audit

19.1 Without prejudice to Clause 19.2, during the Term and for a period of two (2) years thereafter, AVEVA (or its designee) shall be permitted to audit (at least once annually and in accordance with AVEVA’s standard procedures, which may include on-site and/or remote audits of facilities, systems, records, and personnel during Normal Working Hours) the Use of the Products and the receipt of the Support Services and Professional Services (including identifying all of the Customer’s Users and Affiliates) and the Customer’s compliance with this Agreement.

19.2 Notwithstanding Clause 19.1, during the Term and for a period of five (5) years thereafter, AVEVA (or its designee) shall be permitted to audit (at least once annually and in accordance with AVEVA’s standard procedures, which may include on-site and/or remote audits of facilities, systems, records, and personnel during Normal Working Hours) the Customer’s compliance with Clause 12 of this Agreement.

19.3 The Customer shall cooperate reasonably in the conduct of any audit carried out pursuant to this Clause 19 and if:
(i) the audit results indicate usage in excess of applicable usage limitations by five percent (5%) or more, (ii) underpayment of any Charges by five percent (5%) or more, or (iii) breach of this Agreement, all reasonable costs incurred by AVEVA for such audit shall be paid by the Customer.

20. License Compliance Monitoring

20.1 The Customer acknowledges that AVEVA may monitor Customer’s and any third parties’ compliance with any usage restrictions for the Products by legally permissible means, which may be by a security mechanism included in the Products and may include the detection, collection, transmission and processing of data (including Personal Data) by AVEVA, including IP addresses, email domains, and Wi-Fi geolocation, if an illegal copy of a Product is detected. The Customer consents to such compliance monitoring by AVEVA.

20.2 Within thirty (30) calendar days of receipt of a written request from AVEVA, the Customer shall provide AVEVA with a signed certification of compliance with the terms and conditions of this Agreement provided, however, that AVEVA shall not request more than one certificate of compliance annually.

20.3 If the Customer’s Use of a Product exceeds the applicable usage limitations then, without prejudice to AVEVA’s other rights and remedies at law or under this Agreement, AVEVA may suspend Use of such Product until the Customer: (i) pays Charges for such excess usage, which shall accrue from the date the excess usage began (together with an interest rate of one and one-half percent (1.5%) per month or partial month from the date such excess usage began until payment); and (ii) executes an additional Order Form documenting such excess usage and Charges.

21. Force Majeure. Except for the Customer’s obligation to pay any Charges under this Agreement, neither Party shall be liable for delays or failure to perform caused, directly or indirectly, by circumstances beyond their reasonable control, including acts of God, earthquakes, fires, floods, wars, civil or military disturbances, acts of terrorism, sabotage, strikes, epidemics, pandemics, riots, power failures, computer failure and any other circumstances beyond their reasonable control that may cause interruption, loss or malfunction of utility, transportation, computer (hardware or software) or telephone communication service, accidents, labor disputes, acts of civil or military authority, governmental actions, or inability to obtain labor, material, equipment or transportation (“Force Majeure Event”). The affected Party shall provide notice of the Force Majeure Event to the other Party as soon as practicable. If a Party is prevented from meeting any deadlines under this Agreement as a result of a Force Majeure Event, such deadline will be extended by a period of time equal to the period of delay due to the Force Majeure Event, or to such other period as the Parties may agree in writing.

22. Limitations of Liability

22.1 No Implied Terms. Except for the representations and warranties expressly set out in this Agreement, AVEVA disclaims all other warranties, representations, or statements, whether express, implied or statutory, including, without limitation, Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 462 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 9 of 14
any implied warranties of merchantability, fitness for a particular purpose, usage of trade, non-infringement or course of dealing, except to the extent that any such warranties cannot be validly waived under Applicable Laws. AVEVA does not warrant, represent or undertake that: (i) the Products, Support Services or Professional Services shall meet the Customer’s requirements; (ii) the Products, Deliverables, Support Services or Professional Services shall operate in combinations other than as specified in the documentation; (iii) the operation of the Products, Deliverables, Support Services or Professional Services shall be uninterrupted or error-free; or (iv) the Products, Deliverables, Support Services or Professional Services shall protect against all possible security threats, internet threats or other threats or interruptions.

22.2 No Indirect Loss. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR: (I) ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, SPECIAL, PUNITIVE OR SIMILAR DAMAGES; OR (II) LOSS OF BUSINESS, PROFITS, SAVINGS, OR REVENUE (EXCEPT TO THE EXTENT SUCH LOSS IS A DIRECT MEASURE OF DAMAGES FOR INFRINGEMENT OF

INTELLECTUAL PROPERTY RIGHTS), LOSS, CORRUPTION OR DESTRUCTION OF DATA, BUSINESS

INTERRUPTION, OR DOWNTIME, IN EACH CASE ARISING OUT OF OR RELATED TO THIS AGREEMENT,

REGARDLESS OF THE CAUSE OF ACTION OR BASIS OF LIABILITY (WHETHER IN CONTRACT, TORT, INDEMNITY,

STRICT LIABILITY OR ANY OTHER LEGAL OR EQUITABLE THEORY), AND EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

22.3 Cap on Liability. Subject to Clause 22.4, the total aggregate liability of AVEVA and its Affiliates to the Customer for all Claims arising under or in relation to any particular Order Form and any activities taken or not taken in relation to such Order Form, regardless of the basis of liability (whether arising under breach of contract, obligations, or civil liability (including under any indemnity), tort (including negligence), misrepresentation, breach of statutory duty, breach of warranty, condition or Claims by third parties arising from any breach of this Agreement as applicable to such Order Form) shall not exceed the sum equal to (a) the Charges paid by Customer to AVEVA pursuant to such Order Form in the twelve (12) months preceding the date of the breach giving rise to the Claim, or (b) ten thousand US Dollars ($10,000), whichever is greater. The Customer acknowledges that the provisions of this Clause 22.3 allocate the risks between AVEVA and the Customer and the Charges reflect this allocation of risk and the limitation of liability specified herein.

22.4 Nothing in this Agreement shall limit or exclude AVEVA’s or its Affiliates’ liability for: (i) intentional misconduct; (ii) fraud; (iii) death or personal injury caused by negligence; or (iv) any liability to the extent such liability may not be excluded or limited under Applicable Laws. In the case of AVEVA’s indemnification obligations for intellectual property infringement under section 15.1 (Indemnification by AVEVA) the limitations set forth above in Section 22.3 will not apply.

23. Term; Termination

23.1 Term of the Agreement. This Agreement shall continue until either Party terminates this Agreement in accordance with Clause 23.3 (“Term”).

23.2 Term of licenses/Order Form Term. The term of the license granted under Clause 2.1 for On Premises Products, and the right to access and use Cloud Services under Clause 2.2, will continue on a Product-by-Product basis for the applicable license term or subscription period identified in the Order Form, subject to the termination provisions herein.

23.3 Termination

23.3.1 Termination of General Terms and Conditions by notice. Either Party may terminate these General Terms and Conditions by giving no less than sixty (60) Business Days written notice to the other Party provided that such notice may not take effect earlier than the date which is 5 years from the date of signature of the General Terms and Conditions. These General Terms and Conditions will continue to govern any Order Form still in effect at the time of termination as if they had not been terminated.

23.3.2 Termination for Breach. Either Party may terminate this Agreement and/or any Order Form if the other Party commits a material breach of this Agreement or Order Form (including any failure to pay by the Customer) and fails to remedy such breach within twenty (20) Business Days of receipt of a written notice of default from the non-defaulting Party. In the event of a termination of this Agreement for breach of this Agreement, any Order Form then in force shall terminate. Termination of an individual Order Form shall not affect the continuation of this Agreement or any other Order Form. The Parties agree that the Customer’s breach of Clauses 3. General Use of the Products, 9. Customer Obligations, 12. Regulatory Compliance, 17. Personal Data, 18. Record Keeping, or 19. Audit, shall be deemed to be a material breach of this Agreement.

23.3.3 Termination for Insolvency. Either Party may terminate this Agreement if the other Party: (i) becomes or is declared insolvent, has a liquidator, receiver or administrative receiver appointed or passes a resolution for winding up (otherwise than for the purpose of a solvent amalgamation or reconstruction) or if a court having proper authority makes an order to that effect; (ii) enters into administration, is the subject of an administrative order or proposes to or enters into any voluntary arrangement with its creditors in the content of a potential liquidation; or (iii) is subject of any events or circumstances analogous to any of the foregoing in any applicable jurisdiction.

23.3.4 Termination for Change in Customer Status or Applicable Laws. (a) The Customer agrees that if it, its parent, or any Customer Affiliate, becomes subject to any Sanctions Laws, AVEVA may terminate this Agreement as required by such Sanctions Laws and retrieve any Products from the Customer and/or the Customer Premises within the time required. (b) AVEVA may terminate this Agreement or an Order Form at any time by giving written notice to the Customer, if there is a change in any Applicable Laws such that the continued provision of the Products, Support Services, and/or Professional Services to the Customer would, in AVEVA’s reasonable opinion, result in a breach of such Applicable Laws.

Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 463 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 10 of 14

24. Consequences of Termination

24.1 Upon termination of this Agreement or any Order Form, or expiration of the license term of the applicable Products, the Customer shall, as instructed by AVEVA, destroy or return to AVEVA the Products (regardless of the media or device upon which such Products are fixed) and any related software install kits and documentation.

24.2 The Customer may request in writing during the Term that AVEVA return to the Customer any Customer Content stored on CONNECT, and AVEVA shall, at the Customer’s cost, use commercially reasonable efforts to return the Customer Content within sixty (60) calendar days of receipt of such written request, except where AVEVA is required to retain such Customer Content in accordance with Applicable Laws. From and after sixty (60) calendar days following the expiration or termination of this Agreement, AVEVA shall have no further obligations to continue to hold, store, export or return the Customer Content, and AVEVA may delete the Customer Content.

24.3 The Parties agree that Clauses 1. Interpretation, 5. Charges; Expenses, 6. Invoicing and Payment (with respect to any amounts owed as of the date of termination or expiration), 7.4. Pre-Production Product or Preview & Cloud Test and Partner Accounts; Resale Items, 14. Intellectual Property through to and including 19. Audit, 22. Limitations of Liability, 24. Consequences of Termination, and 26. Confidentiality through to and including 37. Governing Law, of this Agreement shall survive termination or expiration of this Agreement.

25. Products and Support Services End of Life. AVEVA may (i) modify any of its Products or Support Services at any time, provided that such modification will not compromise the material functionality of the Product or Support Service and (ii) discontinue marketing and support for any Product in accordance with the Software EOL Policy.

26. Confidentiality

26.1 From time to time, either Party (the “Disclosing Party”) may disclose or make available to the other Party (the “Receiving Party”) Confidential Information of or in the possession of the Disclosing Party in connection with this Agreement.

26.2 The Parties agree that Confidential Information shall not include any information, however designated, that: (i) the Receiving Party can show is or has become generally available to the public without breach of this Agreement by the Receiving Party or became rightfully known to the Receiving Party prior to disclosure to the Receiving Party by the Disclosing Party; (ii) was received from a third party without breach of any non-disclosure obligations to the Disclosing Party or otherwise in violation of the Disclosing Party’s rights; or (iii) was developed by the Receiving Party independently of any Confidential Information received from the Disclosing Party.

26.3 Each Party shall (i) protect the Confidential Information received from the Disclosing Party in the same manner as it protects the confidentiality of its own proprietary and confidential materials, but in no event with less than reasonable care; and (ii) use the Confidential Information received from the Disclosing Party solely for the purposes of this Agreement and in accordance with the terms and conditions of this Agreement. Except as set out in Clause 26.5 and Clause 13.2, neither Party shall disclose to any person any Confidential Information received from the Disclosing Party without the Disclosing Party’s prior written consent and the Receiving Party shall be responsible for any breach of this Clause 26 by its Affiliates, employees, contractors, and agents and any third party to whom it discloses Confidential Information in accordance with this Clause 26.

26.4 Upon termination or expiry of this Agreement or upon written request submitted by the Disclosing Party, whichever comes first, the Receiving Party shall use commercially reasonable efforts to return or destroy, as instructed by the Disclosing Party, all of the Disclosing Party’s Confidential Information, provided however, that a party may retain the other party’s Confidential Information during the pendency of a dispute or litigation between the Parties related to this Agreement, as required by Applicable Laws, or where it is unable to return or destroy such Confidential Information for technical or operational reasons.

26.5 Notwithstanding anything to the contrary in this Clause 26, the Receiving Party may disclose the Confidential Information of the Disclosing Party: (i) pursuant to an order of a court or governmental agency and provided that, if permitted by Applicable Laws, the Receiving Party shall first notify the Disclosing Party of such order and afford the Disclosing Party the opportunity to seek a protective order relating to such disclosure; and (ii) to such of its Affiliates (which, in the case of the Customer, shall be limited to those Customer Affiliates that receive Products, Support Services and Professional Services under this Agreement), employees, contractors, or agents who need to know the Confidential Information in order to support the performance of such Party’s obligations under this Agreement and who are contractually bound by confidentiality obligations that are at least as onerous as those contained in this Agreement.

26.6 Neither Party shall issue any press release relating to this Agreement without the other Party’s consent.

Notwithstanding the foregoing, AVEVA may identify the Customer as a client of AVEVA in AVEVA’s marketing literature and AVEVA is hereby granted a license for the Term to use the Customer’s name and trade marks for this purpose, and AVEVA may describe the Products, Support Services and Professional Services provided under this Agreement to the Customer in AVEVA’s promotional materials, presentations, case studies, qualification statements, and proposals.

27. Assignment and Subcontracting. Subject to this Clause 27, this Agreement shall extend to and be binding upon the Parties to this Agreement, their successors, and assigns, provided, however, that neither Party shall assign or transfer this Agreement without the other Party’s prior written consent, which shall not be unreasonably withheld, delayed or made subject to a condition. AVEVA may make the provision of its consent to such an assignment by the Customer conditional on the Customer: (i) updating the Products, Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 464 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 11 of 14
and /or Support Services that AVEVA supplies or provides to the Customer to the current version of such Products and/or Support Services; or (ii) paying additional Charges. AVEVA may assign or transfer this Agreement, in whole or in part, without obtaining the consent of the Customer, to an Affiliate or in connection with the transfer or sale of its entire business or sale of all or substantially all of its assets, or in the event of a merger, divestiture, or consolidation with another company. AVEVA may contract with third party subcontractors to provide all or part of the Products, Support Services and/or Professional Services on behalf of AVEVA, and AVEVA may change or replace such subcontractors at any time in its sole discretion. AVEVA shall be responsible for the acts or omissions of such AVEVA subcontractors.

28. Notices. All notices to be given under this Agreement will be in writing and delivered by courier or delivery service with written verification of receipt, or by registered or certified mail, postage prepaid and return receipt requested to the addresses set out in the applicable Order Form or to such other address as may be specified in writing by either Party to the other. Notices will be deemed effective upon receipt. Notwithstanding the foregoing, any notices or other communications required or permitted to be provided pursuant to this Agreement may be provided by AVEVA to the Customer on CONNECT; or by electronic mail to Customer’s email address held in AVEVA’s account information records.

29. Entire Agreement. This Agreement constitutes the entire agreement between the Parties relating to its subject matter and supersedes all prior or contemporaneous representations, understandings or agreements whether written or oral, relating to its subject matter. This Agreement will prevail over any additional, conflicting, or inconsistent terms and conditions that may be contained in any purchase order or other document provided by the Customer to AVEVA, or any clickwrap agreement covering the same subject matter. Each Party acknowledges that it is entering into this Agreement without reliance on any undertaking, warranty or representation given by or on behalf of the other, except as expressly set out in this Agreement.

30. Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. An executed facsimile or electronic copy of this Agreement shall be construed as if it were an original.

31. Independent Contractor. Nothing in this Agreement: (i) shall be construed as establishing or implying any partnership or agency between the Parties; and (ii) shall authorize either Party, without obtaining the prior written consent of the other Party, to incur expenses or obligations on behalf of the other Party or to bind the other Party.

32. Waiver. The waiver (whether express or implied) by either Party of a breach or default of any of the provisions of this Agreement (including the Order Form) by the other Party shall not be construed as a waiver of any other breach of the same or other provisions, nor shall any delay or omission on the part of either Party to exercise or avail itself of any right power or privilege that it has or may have hereunder operate as a waiver of any breach or default by the other Party.

33. Severability. If any provision of this Agreement (including any Order Form) is found by any court to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect the other provisions of this Agreement and all provisions not affected by such invalidity or unenforceability shall remain in full force and effect. The Parties hereby agree to attempt to substitute for any invalid or unenforceable provision a valid or enforceable provision which achieves to the greatest extent possible the economic, legal and commercial objectives of the invalid or unenforceable provision.

34. Anti-Competition. Nothing in this Agreement will be construed to preclude AVEVA from developing, using, or marketing products, services or other materials that may be competitive with the Products, Support Services and Professional Services supplied or provided to the Customer under this Agreement.

35. Third Party Rights. For the purposes of the UK Contracts (Rights of Third Parties) Act 1999 and any amendments and implementing regulations to it, the Parties do not intend any person other than a Party to this Agreement to be able to enforce any term of this Agreement (save where may be expressly stated otherwise in this Agreement).

36. Dispute Resolution

36.1 Informal Resolution. The Parties shall use all reasonable efforts to resolve any dispute arising out or in connection with the subject matter of this Agreement. Unless otherwise agreed in writing, all discussions shall be conducted without prejudice to the rights of each of the Parties and shall be conducted between the authorized representatives of the Parties.

Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 465 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 12 of 14

36.2 Mediation. If a dispute cannot be resolved in accordance with Clause 36.1, the Parties shall refer the matter for at least one mediation session in accordance with Clause 36.2.1 and each Party shall use all reasonable efforts to participate in good faith in the mediation session to resolve the dispute. Each Party shall bear its own costs of the mediation, except that the costs of the mediator shall be split equally between the Parties. If the first mediation session is unsuccessful, either Party may notify the other in writing that it intends to refer the dispute to a further mediation session and the other Party shall, within five (5) Business Days of receipt of such notice, acknowledge receipt of such notice and both Parties shall refer the matter to the further mediation session in accordance with Clause 36.2.1. If the further mediation session is unsuccessful or neither Party has notified the other in writing that it intends to refer the dispute to a further mediation session, either Party may refer the dispute to the courts identified in Clause 37 (Governing Law) which shall have exclusive jurisdiction, and such Party shall notify the other Party of the same in writing.

36.2.1 If a dispute is referred to mediation, the mediation shall be conducted in accordance with the JAMS Mediation and Arbitration Group processes and the following shall prevail in the event of a conflict with that procedure: (i) the mediation shall be conducted by a single mediator who shall be appointed by agreement in writing between the Parties or, if the Parties are unable to agree on the identity of the mediator within five (5) Business Days of the date of the request that the dispute be referred to a mediator, or if the mediator appointed is unable or unwilling to act, the mediator shall be appointed by the JAMS Mediation and Arbitration Group upon the application of either Party; and (ii) the mediation shall be held within fifteen (15) Business Days of the appointment of the mediator.

36.3 Notwithstanding the foregoing, AVEVA may file an action in any court of competent jurisdiction to enforce its intellectual property rights in its Products and Services without first submitting its claim to Informal Resolution or Mediation and Customer hereby submits to the jurisdiction of the courts and venue identified in Clause 37 (Governing Law) for this purpose.

36.4 Each Party waives, to the fullest extent permitted by Applicable Laws, any right it may have to a trial by jury in respect of any proceedings relating to the Agreement or any performance or failure to perform any of its obligations under the Agreement.

37. Governing Law. This Agreement and any dispute or claims arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the laws of California without regard to conflict of laws principles that would require the application of the laws of another jurisdiction and brought exclusively in the venue of Orange County.

38. Language. The language of this Agreement is expressly stipulated to be English. In the event that this Agreement will be translated into another language, the English language version of this Agreement will be the governing version for purposes of interpreting and enforcing this Agreement. All Products, Documentation, the Support Services, the Professional Services and other information provided under this Agreement shall be written in English unless otherwise indicated in an Order Form.

Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 466 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 13 of 14

DEFINITIONS APPENDIX
The following capitalised terms used in this Agreement shall have the respective meanings specified below:
“Acceptable Use Policy” or “AUP” means AVEVA’s then-current acceptable use policy, which is located at
https://www.aveva.com/en/legal/usage-policy;
“Account Personal Data” means Personal Data that relates to Customer’s relationship with AVEVA, including the names or contact information of individuals authorized by Customer to access Customer’s account, and other individuals that Customer has associated with its account, and any Personal Data AVEVA may need to collect for the purpose of identity verification;
“Affiliates” with respect to a party, means any entity that directly or indirectly Controls, is Controlled by, or is under common Control with, another entity;
“Appendix” means an appendix to this Agreement;
“Applicable Data Protection Legislation” means any applicable laws and regulation as updated, amended or replaced from time to time in any relevant jurisdictions (including but not limited to the EEA, UK and United States) relating to the data protection, data privacy, Processing of any Personal Data under the Agreement that apply to a Party; “Applicable Laws” means any and all laws and regulations (including income tax treaties and protocols) applicable to or binding upon a Party in the performance of its obligations or exercise of its rights under this Agreement;
“AVEVA Personnel” means any individuals employed or engaged by or operating on behalf of AVEVA or AVEVA’s Affiliates, sub-contractors or agents;
“Business Day” means a day other than a Saturday, Sunday or public or government holiday when banks in London and New York are open for business;
“CFP User Guide” means the Customer FIRST Program User Guide provided by AVEVA and located on https://www.aveva.com/en/legal/; “Charges” or “Fees” means any and all fees payable by the Customer to AVEVA for the Products, Support Services and Professional Services as set out in the Order Form;
“Claims” means all claims, demands, liabilities, obligations, charges, suits, proceedings, actions and causes of action;
“Cloud Service” means the software-as-a-service offering, for which access is to be provided by AVEVA to the Customer. Each Cloud Service is further outlined and described in the applicable Service Description found on www.aveva.com/en/legal/service-description, which are hereby incorporated by reference;
“Cloud Service Level” means the standard with which the provision of the Cloud Services must meet or exceed as set out in this Agreement, as found in the AVEVA Cloud Service Level Commitment, found on
http://www.aveva.com;
“Confidential Information” means any and all information in any form that Disclosing Party provides to Receiving Party in the course of this Agreement and that either: (1) has been marked as confidential; or (2) is of such nature that a reasonable person would consider it confidential under like circumstances. For the avoidance of doubt Customer Content and Personal Data are Confidential Information and Confidential Information of AVEVA includes any and all: (a) Products, Support Services and Professional Services, including any application programming interfaces included in the Product and any programs or materials resulting from the Product (excluding any Customer Content) and any information pertaining to such Products, Support Services and Professional Services (including any user manuals, mathematical techniques, correlations, concepts, designs, specifications, listings, and other documentation, whether or not embedded on a device or another form of media); (b) confidential or proprietary information of a third party provided to the Customer by AVEVA; and (c) the terms and conditions of this Agreement;
“CONNECT” means AVEVA’s platform for managing User subscriptions and accessing the Cloud Services;
“CONNECT Account” means an account of the Customer that is available on CONNECT in which the Customer may access the Cloud Services; “Control” means the beneficial ownership of more than 50% of the issued share capital of a company or the legal power to direct or cause the direction of the management of the company;
“Controller” means the natural or legal person, public authority, agency or other body which, alone or jointly with others, determines the purposes and means of the processing of Personal Data;
“Customer Content” means all software, data, information, text, images, audio, video, photographs, non-AVEVA or third party applications, and other content and material, in any format, provided by the Customer or on behalf of the Customer that is stored in, or run on or through, the Products, Support Services and Professional Services, but shall exclude Personal Data;
“Customer Personal Data” means the Personal Data which is otherwise Processed by AVEVA on behalf of Customer or one of the Customer’s Affiliates;
“Customer Personnel” means any individuals employed or engaged by or operating on behalf of the Customer or the Customer’s Affiliates, subcontractors or agents; “Customer Premises” means the premises owned, controlled or occupied by the Customer as set forth in the applicable Order Form; “Damages” means any and all losses, damages, judgments, costs and expenses in connection with a Claim, including a Party’s reasonable attorneys’ fees and court costs;
“Data Processing Addendum” means the then-current Data Processing Addendum of AVEVA located at https://www.aveva.com/en/legal/; “Deliverables” means any software, configuration, customisation, product, report, documentation, or other item to be developed or otherwise provided or produced by AVEVA in connection with the provision of the Professional Services including any works created for or in cooperation with Customer;
“Delivery” means (i) the date of availability with respect to digital downloads of the Products (ii) the date of receipt with respect to physical media or (iii) the date that installation of the Products is complete if performed by AVEVA, whichever is the earlier;
“Export Control Laws” means any and all laws that control, restrict, or impose licensing requirements on export, re-export, transfer or use of goods, software, technology, or services, issued or adopted by any government, state or regulatory authority of any country in which obligations under this Agreement are to be performed, or in which AVEVA are incorporated or operate, including without limitation the United States of America, the United Kingdom, the European Union or of any of its Member States, and the jurisdiction identified in Clause 37 (Governing Law); “Intellectual Property Rights” means all patents, copyrights and related rights, rights in trademarks and service marks, rights in undisclosed or confidential information (such as know-how, trade secrets and inventions (whether patentable or not)), and other similar or equivalent rights or forms of protection (whether registered or unregistered) as may now or in the future exist anywhere in the world;
“Machine” means any device comprising of hardware or software that is capable of operating autonomously or semi-autonomously including bots, sensors, chips and that are created or controlled by the Customer; Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 467 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI US-v5.0-15 September 2023 Page 14 of 14
“Malicious Code” means viruses, worms, time bombs, Trojan horses and other malicious code, files, scripts, agents or programs; “Normal Working Hours” means 9:00 a.m. to 5:00 p.m. on any business day in the location where the Support Services and Professional Services are being provided (excluding any public holidays in such location); “On Premises Product” means any software product or solution to be provided by AVEVA and installed and Used locally on Customer Premises that is specifically identified as such in an Order Form. All such Use of the On Premises Products shall be governed by the applicable Software Schedule(s) found on www.aveva.com/en/legal, which are hereby incorporated by reference;
“Order Form” means the order form, statement of work or other form of purchase or transaction document entered into by the Customer or its Affiliate, on the one hand, and AVEVA or its Affiliate, on the other hand, pursuant to this Agreement;
“Overtime Rate” means (i) for the first twenty (20) hours of Support Services and/or Professional Services performed outside of Normal Working Hours in any calendar week (other than those performed on a public holiday), one and one-half times (1.5x) the standard rate set out in the Order Form, and (iii) for all Support Services and/or Professional Services performed outside of Normal Working Hours during a calendar week in excess of twenty (20) hours or performed on a public holiday in the location where such Support Services or Professional Services are being performed, twice (2x) the standard rate set out in the Order Form; “Partner Account” means an account which is not for production purposes and is provided to partners participating in the AVEVA Partner Network program;
“Personal Data” means any information relating to an identified or identifiable natural person;
“Pre-Production Product” means any Product that has not completed AVEVA’s formal release requirements and includes beta software, hot fixes (i.e. Products designed to correct a specific defect in a Product, single user Products (i.e. modified Products made for a specific licensee), and trial software;
“Preview” means a feature, either within a Product or independent of a Product, that has not been made available by AVEVA for general release to AVEVA’s customers, but is offered to certain of AVEVA’s customers in a state that can be “previewed” for feedback and validation prior to any such general release;
“Processing”, “Process”, “Processes” and “Processed” refer to any operation or set of operations which is performed on Personal Data, whether or not by automated means, such as collection, recording, organization, structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination, restriction, erasure or destruction; “Processor” means a natural or legal person, public authority, agency or other body which processes Personal Data on behalf of the Controller; “Product” means any On Premises Product or Cloud Service; “Professional Services” means that part of the services set out in a statement of work comprising any implementation, configuration, custom development, or training that AVEVA may provide to a Customer; “Resale Items” means products and services that AVEVA may recommend or make available to the Customer but that are supplied or provided by a third party to the Customer in accordance with an agreement entered into directly between the Customer and such third party;
“Sanctions Laws” means any economic, financial, trade or other, sanction, restriction, embargo, import or export ban, prohibition on transfer of funds or assets or on performing services, or equivalent measure imposed by any government, regulatory authority of any country in which obligations under this Agreement are to be performed, or in which AVEVA are incorporated or operate, including without limitation the United Nations, the United States of America, the United Kingdom, the European Union or of any of its Member States, and the jurisdiction identified in Clause 37 (Governing Law);
“Service Level” means any Cloud Service Level or Support Service Level; “Standby Time” means time during which any AVEVA Personnel is requested to be ready and available to provide the Support Services to the Customer;
“Support Services” means the support services set out in the Order Form and more particularly described in the CFP User Guide, which is incorporated herein by reference;
“Third Party Products” means the products (including any software and software-as-a-service products) of a third party vendor supplied by AVEVA under this Agreement;
“UK” means the United Kingdom;
"UK DPA" means Data Protection Act 2018 of the UK;
“Updates” means any error correction, patch, upgrades, updates, enhancements, improvements, or modifications to the Products generally made available by AVEVA as part of any Support Services, excluding any new version of the Products that may be separately offered by AVEVA; “Usage Metrics” means information and data for determining and measuring Use of, and calculating the fees due for, a Product; “Use” means utilization of a Product whether via CONNECT or by copying, transmitting, or loading the same into the temporary memory (RAM) or installing into the permanent memory (e.g. hard disk, DVD ROM or other storage device) of Customer’s hardware for the processing of the system instructions or statements contained in such Product;
“User” means (i) any Customer Personnel who is authorized by the Customer to Use a Cloud Service on the Customer’s behalf by creating the User Credentials in a CONNECT Account in accordance with this Agreement and (ii) any Customer Personnel authorized by the Customer to operate one (1) or more instances of an On Premises Product from a single workstation;
“User Credentials” means the username and password and any other identifiers of a User provided by AVEVA to the Customer, or created by the User in accordance with instructions provided by AVEVA, in order to allow such User to Use the Product.

Docusign Envelope ID: 9CD07FE4-2E68-4816-8ECE-CA2D4D7EA7E5 Packet Pg. 468 Attachment: AVEVA PI General Terms and Conditions - Revised & Approved by City Attorney - Partially Signed (4.5(b)--Approve Sole-Source for PI December 5, 2024
OSIsoft, LLC
San Leandro Tech Campus
1600 Alvarado Street
San Leandro, CA 94577 USA
To whom it may concern:

This letter certifies that OSIsoft LLC, now part of AVEVA, is incorporated in Delaware USA and is headquartered in California USA.

OSIsoft LLC is the sole developer and licensor of the PI System® software and owns the intellectual property rights for the PI System® software.

We also certify that OSIsoft LLC is the sole provider of Software Reliance Program (SRP) for OSIsoft’s products. SRP consists of: 365 days, 7 days a week, and 24 hours a day phone, email, and web technical support; upgrades for all currently licensed software; and access to OSIsoft’s technical support website https://my.osisoft.com/. Our Technical support website features a searchable knowledge base, documentation and release notes for all OSIsoft products, archived technical support bulletins which include tech tips, and new product release announcements.

The terms and conditions of your SRP are described in the Software License Agreement (SLA) and can be found at https://www.osisoft.com/legal-notices/.

OSIsoft LLC Tax ID number is 94-2690532. The appropriate ECCN (export number) is EAR99.

Please feel free to contact your OSIsoft Account Manager if you have any other questions.

I am authorized to sign on behalf of the company.

Sincerely,
James W. Griffith
Finance SVP
Packet Pg. 469 Attachment: AVEVA sole provider letter 2024 (4.5(b)--Approve Sole-Source for PI System licensing with AVEVA Software LLC)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve the sole-source procurement of hardware, software, and licenses, in an amount not to exceed $250,000, for upgrading the physical access control systems at City of Redding Electric Utility substations and find that the name AMAG Technologies in the project specifications for Public Works projects, as pursuant to Public Contract Code Section 3400(c)(2), to match existing systems already in use by the City of Redding.

Fiscal Impact
The estimated cost of AMAG Technologies' equipment is $250,000. This project is a continuation of work that was previously approved and funded in the Fiscal Year 2023–25 biennial budget cycle. As such, the necessary funding remains available, and no additional appropriations are being requested at this time.

Alternative Action
The City Council (Council) may choose not to make a finding to sole-source the equipment for the AMAG Technologies access control system for Redding Electric Utility (REU) substations and provide alternative direction to staff.

Background/Analysis
Physical access control systems regulate secure entry to sensitive sites using card-based credentialing and centralized alarm monitoring. REU’s existing access system requires updating for security purposes.

MEETING DATE: August 19, 2025
ITEM NO. 4.5(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(c)--Make a Finding to Sole Source AMAG Technologies Physical Access Control Systems
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 470
Report to Redding City Council August 14, 2025
Re: 4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems Page 2
To address this need, REU evaluated several access control platforms and selected AMAG Technologies based on its proven ability to meet the North American Electric Reliability Corporation (NERC) requirements for medium-impact facilities. AMAG systems are currently in use at REU’s Power Control Center and Power Plant, where they have been successfully implemented without incident. The platform has demonstrated robust performance, compatibility with utility operations, and strong vendor support. Based on these factors, staff recommends standardizing on AMAG Technologies for all REU substations to ensure consistent system architecture, security compliance, and ease of maintenance.

Standardizing on a specific manufacturer requires Council to make a sole-source finding under California Public Contract Code (PCC) Section 3400(c)(2), which allows naming a particular brand in bid specifications when necessary to ensure compatibility with existing systems. This approach reduces integration complexity, streamlines technical support, and lowers long-term operational costs. The Council previously approved AMAG-related procurements, including:
• On December 21, 2021, the Council approved the sole-source procurement of the Avigilon system; however, subsequent evaluations determined it did not meet NERC standards; and
• On September 6, 2022, the Council authorized procurement of a new access control system, leading to the selection of AMAG Technologies for medium-impact facilities.

If approved, AMAG Technologies equipment will be included in Public Works bid specifications for substation security upgrades. Staff will begin with a pilot installation at one substation and proceed with systemwide implementation pending successful results.

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

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
Previous Staff Report - 12_21_2021 Access Control Sole-Source (Avigilon) Previous Staff Report - 09_06_2022 Transmission Owner and Transmission Operator REU's Utility Security Plan
Packet Pg. 471
Packet Pg. 472
Attachment: Previous Staff Report - 12_21_2021 Access Control Sole-Source (Avigilon) (4.5(c)--Make a Finding to Sole-Source AMAG Packet Pg. 473
Attachment: Previous Staff Report - 12_21_2021 Access Control Sole-Source (Avigilon) (4.5(c)--Make a Finding to Sole-Source AMAG

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the City Manager or designee, to approve the procurement of a new access control system for Redding Electric Utility locations deemed as medium impact locations, based on standards as set forth by North American Electric Reliability Corporation (NERC), in a not to exceed amount of $60,000.

Fiscal Impact
Redding Electric Utility (REU) will procure a new access control system for the secured areas that meets the medium impact standards set forth by NERC. Selection of the replacement system will be based on its ability to meet NERC requirements, availability, and City of Redding Purchasing Department approval. The cost of the new system is anticipated not to exceed $60,000. Staff will repurpose the existing system at other City facilities to help offset costs.

Alternative Action
The City Council (Council) could choose to not authorize the system change at the secured facilities and provide alternative direction to staff.

Background/Analysis
On February 7, 2020, NERC directed REU to register as a Transmission Owner and Transmission Operator (TO/TOP). Since that time, REU has worked closely with the Western Electricity Coordinating Council (WECC) in order to implement and comply with 147 new standards before the final deadline of November 2022.

MEETING DATE: September 6, 2022
ITEM NO. 4.3(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.3(a)--Transmission Owner and Transmission Operator (TO/TOP) Medium Impact Access Control System
Tony Van Boekel, Chief
Information Officer/IT
Director
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Re: 4.3(a)--TO/TOP Medium Impact Access Control System Page 2 Due to the number of new standards and strict timeline, REU requested approval for the Council to grant the City Manager, or designee, the authority to sole-source the procurement of software, hardware, and service agreements relating to REU’s operations as a TO/TOP registration based on recommendations by the expert consultants assisting with the implementation. This request was approved at the March 16, 2021, Council meeting.

One of the new standards requires a physical access control system to be implemented at any REU medium impact facility. In early October 2021, the City of Redding (City) issued a Purchase Order for an access control system (Avigilon Access Control Manager (ACM)) using the aforementioned sole-source authorization, understanding of the standard requirements at that time, and vendor information stating they were compliant with NERC standards. The installation of the access control system was completed in February 2022.

Since that time, it has been discovered that there are two requirements specific to NERC medium standards, that Avigilon ACM cannot, and will not, accommodate. As such, a new system is required in order to fully comply with the NERC medium standard prior to November 2022.

Failure to do so could result in a fine of $1.6 million dollars per day, per offense.

Since the Council approved the City to sole-source the Avigilon ACM as a City-wide solution for current and future physical access control needs on December 21, 2022, the City will be able to repurpose the equipment from the secure facilities to other City locations/facilities. Avigilon ACM is compliant with DOJ, NERC low standards, and can meet the needs of the majority of the City. The Information Technology Department will work to standardize on the Avigilon ACM with the exception of facilities where the system is deemed non-compliant based on supplemental governing regulations or standards.

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

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UTILITY

SECURITY
PLAN
PUBLIC REPORT ON REDDING ELECTRIC UTILITY’S
PHYSICAL SECURITY PROGRAM FOR DISTRIBUTIONLEVEL FACILITIES June 1, 2021
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2 TABLE OF CONTENTS
A. Goal of Utility Security Plan ...................................................................................................................... 4 B. Description of Redding Electric Utility ............................................................................................... 4 C. Results of Utility Security Plan Assessment ........................................................................................ 5 II. Background ................................................................................................................................................ 6 III. Plan Development Process...................................................................................................................... 8 A. Physical Security Principles.................................................................................................................. 8 B. Utility Security Plan Development Process....................................................................................... 9 Step 1: Assessment/Plan Development................................................................................................. 9 Step 1A: Identify Covered Distribution Facilities .................................................................................. 9 Step 1B: Perform Risk Assessment.......................................................................................................... 10 Step 1C: Develop Mitigation Plan ........................................................................................................ 10 Step 2: Independent Review................................................................................................................. 11 Step 3: Validation .................................................................................................................................... 12 Step 4: Adoption...................................................................................................................................... 12 Step 5: Maintenance .............................................................................................................................. 12 Step 6: Repeat Process........................................................................................................................... 12 IV. Identification of Covered Distribution Faciliites (Step 1A) ............................................................... 13 A. Identification Factors ......................................................................................................................... 13 B. Identification Analysis ........................................................................................................................ 14 V. Risk Assessment (Step 1B) ....................................................................................................................... 15 A. Methodology....................................................................................................................................... 15 B. Mitigation Measures ........................................................................................................................... 15 C. Risk Assessment.................................................................................................................................... 16 Packet Pg. 477 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) Redding Electric Utility Security Plan
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3 VI. Covered Distribution Facility Mitigation Plans (Step 1C) .................................................................. 19 VII. Independent Evaluation and Response (Step 2).............................................................................. 19 A. Requirements for Qualified Third-Party Review ............................................................................. 19 B. Identification of Third-Party Reviewer ............................................................................................. 19 C. Public Results of Third-Party Evaluation........................................................................................... 19 D. REU Response ...................................................................................................................................... 19 VIII. Validation (Step 3)................................................................................................................................... 20 A. Selection of Qualified Authority....................................................................................................... 20 B. Results of Qualified Authority Review.............................................................................................. 20 IX. Narrative Descriptions for Utility Security Plan .................................................................................... 21 A. Asset Management Program........................................................................................................... 21 B. Workforce Training and Retention Program.................................................................................. 21 C. Preventative Maintenance Plan...................................................................................................... 21 D. Physical Security Event Training ....................................................................................................... 22 E. Communication Infrastructure Risk Assessment ........................................................................... 22 F. Facility Design Features ..................................................................................................................... 22

APPENDICIES
A. CALIFORNIA PUBLIC UTILITIES COMISSION RULEMAKING 15-06-009 B. THIRD-PARTY EVALUATION OF UTILITY SECURITY MITIGATION PLAN C. VALIDATION OF UTILITY SECURITY PLAN
D. SUBSTATION MAP
E. REU WILDFIRE MITIGATION PLAN TECHNOLOGY SOLUTIONS PROGRAM F. REU CRITICAL LOADS AND ALTERNATE CIRCUITS
G. SOP-214 PHYSICAL SECURITY PLAN FOR LOW IMPACT BCS
H. SOP-215 ELECTRONIC ACCESS CONTROL FOR LOW IMPACT BCS I. FIXED CAMERA LOCATION MAP
J. SUBSTATION FENCE SPECIFICATION
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4 I. OVERVIEW
A. GOAL OF UTILITY SECURITY PLAN
Ensuring the safety of its facilities is a top priority for Redding Electric Utility (REU), and REU prioritizes safety in all aspects of its design, operation, and maintenance practices. The overarching goal of this Utility Security Plan (Plan) is to describe REU’s risk management approach toward distribution system physical security, with appropriate consideration of resiliency, impact, and cost.

REU recognizes the importance of securing the safety and reliability of its electric system and, therefore, REU voluntarily participated in the California Public Utilities Commission’s (CPUC) Physical Security proceeding and has undertaken this assessment. In the spirit of continued voluntary cooperation, REU offers the following in response to CPUC Decision 19-01-018.

The REU Security Plan development schedule is provided below. x July 10, 2020 - Initial Draft Mitigation Plan (optional for POUs) x May 10, 2021 - Redding Police Department (third-party review) x May 17, 2021 – Redding Fire Department (Validation of Plan) x June 1, 2021 - Adoption of Plan by City Council
x July 10, 2021 - 30 months from effective date provide CPUC Safety and Enforcement x Division with notice of final plan adoption (NLT 30 Days after adoption) This Plan will be reviewed and updated at least every five years from initial adoption. A notification of the program acceptance and notifications of future updates will be submitted to the CPUC within 30 days of adoption of the plan.

B. DESCRIPTION OF REDDING ELECTRIC UTILITY
REU services 44,358 meters within 61 square miles of service territory. REU has 743 miles of 12kV power lines, 72 miles of 115kV transmission lines, and 12 substations.

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5 C. RESULTS OF UTILITY SECURITY PLAN ASSESSMENT
REU owns and operates eleven (11) 115kV to 12kV distribution substations and one (1) 13.8 kV to 115kV generation step up substation.

All but four substations have loads that are critical to the community normally connected to them.

Due to varying circumstances (planned or unplanned outages), all substations could have critical loads connected and therefore this Plan will treat all of REU’s substations as “covered” under the ruling.

After assessment, no facilities required mitigation plans, however, optional security measures have been identified for future incorporation as time and budget allows.

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6 II. BACKGROUND
REU has been operating its electric system for almost 100 years. System protection for both public and asset safety has been paramount.

In order to support a statewide improvement of how utilities address distribution level physical security risks, the California Municipal Utilities Association (CMUA), which is the statewide trade association for publicly owned utilities (POUs), coordinated with the state’s investor owned utilities (IOUs) to develop a comprehensive Straw Proposal (Joint IOU/POU Straw Proposal) for a process to identify at-risk facilities and, if necessary, develop physical security mitigation plans. As a member of CMUA, REU staff participated in the development of the Joint IOU/POU Straw Proposal through a CMUA working group as well as through direct meetings with the IOUs. The Joint POU/IOU Straw Proposal set out a process for the following: (1) identifying if the utility has any high priority distribution facilities; (2) evaluating the potential risks to those high priority distribution facilities; (3) for the distribution facilities where the identified risks are not effectively mitigated through existing resilience/security measures, developing a mitigation plan; (4) obtaining third party reviews of the mitigation plans; (5) adopting a document retention policy; (6) ensuring a review process established by the POU governing board; and (7) implementing information sharing protocols.

The Risk Assessment and Safety Analytics (RASA) unit of CPUC’s Safety and Enforcement Division filed a response to the Joint IOU/POU Straw Proposal that recommended various modifications and clarifications, including a six-step process. Additionally, RASA recommended that the utility mitigation plans include: (1) an assessment of supply chain vulnerabilities; (2) training programs for law enforcement and utility staff to improve communication during physical security events; and (3) an assessment of any nearby communication utility infrastructure that supports priority distribution substations.

REU is following the process outlined in California Senate Bill (SB) 699 and issuing this report at this time to reflect its existing commitment to safety and to protecting its customers’ investment by taking reasonable and cost-effective measures in an effort to safeguard key assets of its distribution system.

This ruling is the nexus for the fixed-camera technology contemplated in the Technology Solutions Program of the REU Wildfire Mitigation Plan (WMP) (revised December 1, 2020) in providing physical security to “Covered Distribution Facilities”. This ruling was in effect and in view while the WMP was developed. REU (along with other publicly owned utilities) is listed in, and subject to the ruling. The assessment portion includes determining “the potential for emergency responders to identify and respond to an attack in a timely manner”. The Automatic License Plate Reader technology and fixed cameras are uniquely able to meet that need as part of this Physical Security Mitigation Plan. The potential security solutions specifically stated in the ruling include (1) access measures and (2) “Deterrent – Measures to discourage unauthorized entry or breach of the facility (e.g., cameras, lights); and (3) Coordination – Measures to further collaborate with law enforcement as appropriate.”
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7 Article XI, Section 7 of the California Constitution provides certain POUs with the authority to own and operate their own utility systems and self-regulate their operations. REU as such is a municipal utility governed by the Redding City Council who serves as the Utility Commission.

According to the ruling, the goal is “to establish system-wide industry standards that are aimed at addressing the potential risks and threats associated with a long-term outage at a distribution facility on a statewide basis…”, “and…not designed to expand Commission [California Public Utility Commission] investigatory or penalty authority against the POUs.” REU is a department within the City of Redding. For security, crime prevention, and response, REU is subordinate to the City of Redding Police Department (RPD).

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8 III. PLAN DEVELOPMENT PROCESS
A. PHYSICAL SECURITY PRINCIPLES
The Joint IOU/POU Straw Proposal sought to support the creation of a risk management approach toward distribution system physical security, with appropriate considerations of resiliency, impact, and cost. In order to accomplish this risk-based approach, the Joint IOU/POU Straw Proposal identified several principles to guide the development of each individual utility’s program. These principles are the following:

1. Distribution systems are not subject to the same physical security risks and associated consequences, including threats of physical attack by terrorists, as the transmission system.

2. Distribution utilities will not be able to eliminate the risk of a physical attack occurring, but certain actions can be taken to reduce the risk or consequences, or both, of a significant attack.

3. A one-size-fits-all standard or rule will not work. Distribution utilities should have the flexibility to address physical security risks in a manner that works best for their systems and unique situations, consistent with a risk management approach.

4. Protecting the distribution system should consider both physical security protection and operational resiliency or redundancy.

5. The focus should not be on all Distribution Facilities, but only those that risk dictates would require additional measures.

6. Planning and coordination with the appropriate federal and state regulatory and law enforcement authorities will help prepare for attacks on the electrical distribution system and thereby help reduce or mitigate the potential consequences of such attacks.

Additional principles that guide REU include:

7. Increase the level of security through situational awareness and technology as provided by REU’s Wildfire Mitigation Plan – Technology Solutions Program (WMP-TSP) and the Emergency Operations Program (WMP-EOP).

8. Ensure the distribution system provides reliability through redundancy.

9. Provide opportunities to better coordinate with Law Enforcement, specifically RPD.

10. Incorporate the security features described in this plan at new or modified substations.

11. Ensure industry best practices are considered and implemented as appropriate and cost-effective.

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9 B. Utility Security Plan Development Process
The major focus of this Plan is to address the risks and threats of a long-term outage to a distribution facility. Clearly, a long-term outage at any distribution facility poses numerous safety issues.

This Plan describes the range of activities that REU is taking or considering to protect its distribution assets, including its various programs, policies, and procedures. This Plan complies with the requirements of CPUC section 364 for publicly owned electric utilities to prepare a physical security plan by July 10, 2021, and every five years thereafter. The Plan will be iterative, promote continuous improvement, and represent best efforts to implement industry best practices in a prudent and reasonable manner.

REU utilized a multi-step process to develop this Utility Security Plan that is consistent with the Joint IOU/POU Straw Proposal and D.19-01-018. The relevant six steps of that process are the following:

STEP 1: ASSESSMENT/PLAN DEVELOPMENT
REU staff prepared a Draft Utility Security Plan through the process set forth in Steps 1A, 1B, and 1C. RPD and REU coordinated on the assessment of the substation security plan.

STEP 1A: IDENTIFY COVERED DISTRIBUTION FACILITIES
REU evaluated all distribution-level facilities in its service territory that are subject to its control to determine if any facility meets D.19-01-018’s definition of a “Covered Distribution Facility” using the seven factors identified in the Joint IOU/POU Straw Proposal.

REU owns and operates eleven (11) 115kV to 12kV distribution substations and one (1) 13.8 kV to 115kV generation step up substation.

Table 1 Identification of “Covered Facilities”
Substation Facilities
Airport 115kV
Beltline
Canby
College View
East Redding
Eureka Way
Moore Road
Oregon Street
Redding Power
Sulphur Creek
Texas Springs
Waldon
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10 All but four substations have loads that are critical to the community normally connected to them.

Due to varying circumstances (planned or unplanned outages), all substations could have critical loads connected and therefore this Plan will treat all of our substations as “covered” under the ruling.

STEP 1B: PERFORM RISK ASSESSMENT
For every individual Covered Distribution Facility identified pursuant to Step 1A, REU will perform an evaluation of the potential risks associated with a successful physical attack on that Covered Distribution Facility, and whether existing grid resiliency, back-up generation, and/or physical security measures appropriately mitigate identified risks.

In addition to the physical security measures, our distribution system has flexibility and redundancy built into it through field switching. We are able to feed critical loads from different transformers and even different substations. Appendix F has the backup circuits listed for the critical loads identified. Redding’s system currently has excess substation capacity even during our highest peak periods. Due to this capacity, we have been able to take one or more entire substations offline in order to facilitate major system upgrades. That same approach could be used in the event of an unplanned issue.

Furthermore, the Redding Power Plant provides 183MW of clean natural gas generation within the service territory, enough to power the entire city for most of the year, similar to a 60-square mile micro-grid.

Redding also has a new and unused substation transformer at the College View Substation that could be relocated and installed in the event of a catastrophic failure. Other inventory includes transformer bushings, CCVTs, protective relays, and other critical components.

STEP 1C: DEVELOP MITIGATION PLAN
While all “covered” facilities have adequate physical security and resilience, there are additional technologies and cooperation underway in order to increase situational awareness by both utility operations and law enforcement. These enhancements have been defined and budgeted through REU’s WMP-TSP and WMP-EOP. Many of these measures will be completed by the July 2021 deadline.

Within the Ruling, there are four strategies where this Plan, through the implementation of the WMP-TSP, and WMP-EOP, and planned capital improvements, will enhance our existing physical security measures:

1. Response Time – Measures to improve the potential for emergency responders to identify and respond to an attack in a timely manner;

2. Deterrent – Measures to discourage unauthorized entry or breach of the facility (e.g., cameras, lights);

3. Access – fences, gates, and barriers or other security devices; and

4. Coordination – Measures to collaborate with law enforcement.

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11 The WMP – TSP includes provisions for fixed cameras including Automatic License Plate Readers (ALPR) and high definition cameras. Each type of camera provided meets different strategies. The ALPR technology can decrease response time significantly. With the appropriate notifications, RPD could be aware of a potential threat already identified by other agencies and when or if that threat comes near REU facilities, they would receive notification.

The fixed cameras provide a deterrent around REU facilities as well as general visual indication of threats including wildfires.

The WMP-EOP includes the implementation of a Department Operations Center (DOC) where all of the information from the cameras, our utility operations SCADA system, GIS systems, and other fire awareness technology are gathered. The DOC becomes a physical place to coordinate with first responders and the technology of the DOC provides virtual coordination to utility staff and first responders.

All of these strategies and technologies combine to provide enhanced situational awareness. This along with improved planning, coordination, and training with RPD provides a very high level of security for REU’s distribution assets.

The following initiatives will be implemented as time and budget allows to improve the resilience of all REU substations:

STEP 2: INDEPENDENT REVIEW
For every Utility Security Plan cycle, REU will document the results of the identification process, risk assessment, and Mitigation Plan development performed pursuant to Steps 1A, 1B, and 1C. This documentation in combination with narrative description in Section IX below constitutes REU’s Draft Utility Security Plan. Each Draft Utility Security Plan is submitted to a Qualified Third Party for Independent Review. The Qualified Third-Party Reviewer will then issue an evaluation that identifies any potential deficiencies in the Draft Utility Security Plan as well as recommendations for improvements. REU will then modify its plan to address any identified deficiencies or recommendations, or will document the reasons why any recommendations were not adopted.

REU’s Utility Security Plan will consist of the Draft Utility Security Plan, the non-confidential conclusions of the Qualified Third-Party Reviewer, and REU’s responses to the Qualified Third-Party Review.

RPD will conduct the independent review. REU coordinates with RPD and is subordinate for emergency and public safety issues. REU will work closely with RPD for situational awareness and Packet Pg. 486 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) Redding Electric Utility Security Plan
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12 other public safety issues related to this Plan. RPD will review this Plan and provide comments for consideration by REU. If any suggested changes are not incorporated, justification will be documented and included in Appendix B.

STEP 3: VALIDATION
Under guidance of the California Public Utility Commission, validation of REU’s Plan was conducted by the City of Redding Deputy Fire Chief on May 17, 2021 prior to approval from the City Council. A validation memo is attached as an Appendix to the Plan.

STEP 4: ADOPTION
REU’s Utility Security Plan will be presented to and adopted by the Redding City Council at a public meeting.

STEP 5: MAINTENANCE
REU will refine and update the Utility Security Plan as appropriate and as necessary to preserve plan integrity.

STEP 6: REPEAT PROCESS
REU will repeat this six-step process at least once every five years.

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13 IV. IDENTIFICATION OF COVERED DISTRIBUTION FACILIITES (STEP 1A) As described in Section III, Step 1A, the Utility Security Plan identification process involves assessing all distribution-level facilities that are subject to the control of REU to determine which facilities are “Covered Distribution Facilities” and require a risk assessment. This Section describes the factors that REU used to evaluate its distribution facilities and the results of its evaluation.

A. IDENTIFICATION FACTORS
The Joint IOU/POU Straw Proposal defines seven screening factors to determine if a facility is a “Covered Distribution Facility.” Some factors require additional definitions and/or clarifications in order to be applied to REU’s facilities. The following Table provides the Joint IOU/POU Straw Proposal’s Factors as modified/clarified by REU.

Factor Joint IOU/POU Straw Proposal Description Additional Clarification 1 Distribution Facility necessary for crank path,
black start or capability essential to the
restoration of regional electricity service
that are not subject to the California
Independent System Operator’s (CAISO)
operational control and/or subject to North
American Electric Reliability Corporation
(NERC) Reliability Standard CIP-014-2 or its
successors
No additional clarification.
2 Distribution Facility that is the primary source
of electrical service to a military installation
essential to national security and/or
emergency response services (may include
certain airfields, command centers,
weapons stations, emergency supply
depots)
No additional clarification.
3 Distribution Facility that serves installations
necessary for the provision of regional
drinking water supplies and wastewater
services (may include certain aqueducts,
well fields, groundwater pumps, and
treatment plants)
An installation provides “regional drinking
water supplies and wastewater services” if
it is the primary source of drinking water
supply or wastewater services for over
40,000 customer accounts for an area
with a population of over 100,000.
4 Distribution Facility that serves a regional
public safety establishment (may include
County Emergency Operations Centers;
county sheriff’s department and major city
police department headquarters; major
state and county fire service headquarters;
county jails and state and federal prisons;
and 911 dispatch centers)
REU defines “regional public safety
establishment” as any of the following: (1)
Headquarters of a major police or fire
department serving 1.5 million population
with at least 1,000 sworn officers; (2)
County Sheriff’s Department
Headquarters; (3) County Emergency
Operations Center; (4) County/State Fire
headquarters; (5) a California State Prison;
(5) a United States Penitentiary; or (6) a
Federal Correctional Institute.

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14 5
Distribution Facility that serves a major
transportation facility (may include
International Airport, Mega Seaport, other
air traffic control center, and international
border crossing)
In addition to the facilities listed in the
Joint IOU/POU Straw Proposal, REU defines
a “major transportation facility” as any
transportation facility that has (1) an
average of 600 or more flights per day; or
(2) over 50,000 passengers arriving or
departing per day.
6 Distribution Facility that serves as a Level 1
Trauma Center as designated by the Office
of Statewide Health Planning and
Development
No additional clarification.
7 Distribution Facility that serves over 60,000
meters
No additional clarification.

B. IDENTIFICATION ANALYSIS
In performing this identification analysis, REU assessed all distribution level facilities that are subject to its exclusive control, or if the facility is jointly owned, facilities where the joint ownership agreement identifies REU as the entity responsible for operation and maintenance. The specific types of facilities include substations and the power plant.

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15 V. RISK ASSESSMENT (STEP 1B)
A. METHODOLOGY
Pursuant to the process identified in the Joint IOU/POU Straw Proposal and D.19-01-018, REU assessed the potential risks associated with a successful physical attack on each of the Covered Distribution Facilities identified in Section IV. For the purpose of this analysis, a physical attack is limited to the following: (1) theft; (2) vandalism; and (3) discharge of a firearm. A “successful physical attack” is limited to circumstances where a theft, vandalism, and/or the discharge of a firearm has directly led to the failure of any elements of the Covered Distribution Facility that are necessary to provide uninterrupted service to the specific load identified in Section IV.

In order to perform this risk analysis, REU evaluated the relative risk that (1) a physical attack on a Covered Distribution Facility will be successful considering the protective measures in place; or (2) the impacts of a successful attack will be mitigated due to resiliency and other measures in place.

B. MITIGATION MEASURES
D.19-01-018 identifies the specific mitigation measures that a utility should consider when performing this risk analysis. The following table lists these mitigation measures and provides REU’s additional clarifications that are necessary to apply these measures to the REU’s territory.

Measure D.19-01-018 Description Additional Clarification 1 The existing system resiliency and/or
redundancy solutions (e.g., switching the
load to another substation or circuit
capable of serving the load, temporary
circuit ties, mobile generation and/or
storage solutions).

No additional clarification.
2 The availability of spare assets to restore a
particular load.

No additional clarification.
3 The existing physical security protections to
reasonably address the risk.

No additional clarification.
4 The potential for emergency responders to
identify and respond to an attack in a
timely manner.

Each facility is evaluated based on
the likelihood that a law enforcement
officer would generally be able to
arrive at the Covered Distribution
Facility within 15 minutes of a report
from the public of a break-in or
attack, or of REU notifying the law
enforcement agency of triggering of
an alarm at the facility.
5 Location and physical surroundings,
including proximity to gas pipelines and
geographical challenges, and impacts of
weather.

REU evaluated this element based on
the proximity of the Covered
Distribution Facility to populated areas
and the extent to which the interior of
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16 the facility is shielded from view and
access due to walls, vegetation, or
other physical obstructions.
6 History of criminal activity at the Distribution
Facility and in the area.

REU evaluated the property crime
rates in the immediate vicinity of the
Covered Distribution Facility and
compared those crimes rates to
property crime rates for the county
and the state to determine if the area
is subject to a higher than average
incidence of property related crimes.
7 The availability of other sources of energy
to serve the load (e.g., customer owned
back-up generation or storage solutions).

No additional clarification.
8 The availability of alternative ways to meet
the health, safety, or security.

No additional clarification.
9 Requirements served by the load (e.g.,
back up command center or water
storage facility).

No additional clarification.

C. RISK ASSESSMENT
Based on the process described in the Joint IOU/POU Straw Proposal and the direction provided in D.19-01-018, REU has determined that of the eight Covered Distribution Facilities identified in Section IV, the existing programs and measures effectively mitigate the risks of a physical attack for all of those Covered Distribution Facilities.

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17Packet Pg. 492 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) Redding Electric Utility Security Plan
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18 As identified above, all of the Covered Distribution Facilities have existing measures sufficient to effectively mitigate the identified risks of a physical attack.

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19 VI. COVERED DISTRIBUTION FACILITY MITIGATION PLANS (STEP 1C) Pursuant to the process identified in the Joint IOU/POU Straw Proposal and D.19-01-018, REU has determined that for the Covered Distribution Facilities subject to REU’s control, the existing mitigation measures sufficiently reduce the risk of a physical security attack.

VII. INDEPENDENT EVALUATION AND RESPONSE (STEP 2)
A. REQUIREMENTS FOR QUALIFIED THIRD-PARTY REVIEW
D.19-01-018 specifies the following criteria for a Qualified Third-Party Reviewer:

Independence: A Qualified Third-Party Reviewer cannot be a division of the POU. A governmental entity can select as the third-party reviewer another governmental entity within the same political subdivision, so long as the entity has the appropriate expertise, and is not a division of the POU that operates as a functional unit, i.e., a municipality could use its police department as its third-party reviewer if it has the appropriate expertise.

Adequate Qualifications: A Qualified Third Party Reviewer must be an entity or organization with electric industry physical security experience and whose review staff has appropriate physical security expertise, which means that it meets at least one of the following: (1) an entity or organization with at least one member who holds either an ASIS International Certified Protection Professional (CPP) or Physical Security Professional (PSP) certification; (2) an entity or organization with demonstrated law enforcement, government, or military physical security expertise; or (3) an entity or organization approved to do physical security assessments by the CPUC, Electric Reliability Organization, or similar electrical industry regulatory body.

B. IDENTIFICATION OF THIRD-PARTY REVIEWER
REU has selected RPD as its Third-Party Reviewer.

As a municipality, under D.19.01.018, RPD has the appropriate expertise to act as the third-party reviewer.

C. PUBLIC RESULTS OF THIRD-PARTY EVALUATION
The Redding Police Department completed their review of REU’s Utility Security Plan and visited numerous substation sites. The Independent Review is attached as Appendix B.

D. REU RESPONSE
REU met with the Independent Evaluator and concurs with the recommendations listed in Appendix B.

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20 VIII. VALIDATION (STEP 3)
A. SELECTION OF QUALIFIED AUTHORITY
Under guidance of the California Public Utility Commission, validation of REU’s Plan was conducted by the City of Redding Deputy Fire Chief prior to City Council approval and is attached as Appendix C.

B. RESULTS OF QUALIFIED AUTHORITY REVIEW
REU concurs with both the third-party review and validation report conducted by security experts from the Redding Police and Redding Fire Departments.

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21 IX. NARRATIVE DESCRIPTIONS FOR UTILITY SECURITY PLAN A. ASSET MANAGEMENT PROGRAM
In 2007 REU began implementing the substation modernization program that was completed in 2019. The program upgraded all substation controls and protection systems with standardized components. This approach reduces the quantity of spare parts needed as the same equipment is used in all substations for controls and protection.

REU has both a central warehouse as well as spare part inventories at each substation. There are spare parts for all substation components, including a 28MVA 115KV/12KV transformer which is the highest cost and longest lead time item.

REU participates in the Electricity Information Sharing and Analysis Center (E-ISAC) for physical security notifications as well as coordination through various joint power authorities. REU is also a member of the California Utilities Emergency Association (CUEA) for fast response mutual aid.

B. WORKFORCE TRAINING AND RETENTION PROGRAM
REU conducts annual salary and compensation studies for recruitment and retention of highly qualified staff. By maintaining well trained and qualified employees, REU is able to respond quickly to any equipment needs or repairs within the City of Redding substations. Inventory of equipment for substations is monitored and kept on hand to ensure a timely response for any issues that may arise. Since training for technical staff is a high priority, REU has a substation controls training facility for testing new products and improving competency for existing equipment used in the substations.

C. PREVENTATIVE MAINTENANCE PLAN
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22 D. PHYSICAL SECURITY EVENT TRAINING
REU’s DOC will incorporate substation security during annual emergency operations training with all departments in the City of Redding, including the Redding Police and Fire Departments.

E. COMMUNICATION INFRASTRUCTURE RISK ASSESSMENT
The citywide radio equipment on Southfork Mountain, west of the City of Redding, is subject to both wildfire and snow storms which impacts emergency radio communication within the City of Redding. REU is replacing the current citywide radio system for public safety and utility infrastructure. The new radio sites will be placed within the city limits, reducing the impacts due to poor weather conditions and public safety power shutoffs (PSPS).

F. FACILITY DESIGN FEATURES
As part of the risk mitigation to the substations, REU is studying various security measurements for future installation.

REVISION HISTORY
Version
Number
Revision
Date
Summary of Changes

1.0 6/1/21 Initial
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APPENDIX A

CPUC RULEMAKING
15-06-009

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COM/CR6/avs Date of Issuance 1/22/2019

Decision 19-01-018 January 10, 2019

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Order Instituting Rulemaking
Regarding Policies, Procedures and
Rules for Regulation of Physical
Security for the Electric Supply
Facilities of Electrical Corporations
Consistent with Public Utilities Code
Section 364 and to Establish Standards
for Disaster and Emergency
Preparedness Plans for Electrical
Corporations and Regulated Water
Companies Pursuant to Public Utilities
Code Section 768.6.

Rulemaking 15-06-009

PHASE I DECISION ON ORDER INSTITUTING RULEMAKING

REGARDING THE PHYSICAL SECURITY OF

ELECTRICAL CORPORATIONS
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TABLE OF CONTENTS
Title Page

PHASE I DECISION ON ORDER INSTITUTING RULEMAKING

REGARDING THE PHYSICAL SECURITY OF ELECTRICAL
CORPORATIONS .................................................................................................... 2 Summary .................................................................................................................. 2

1. Factual Background ........................................................................................... 3

1.1. Procedural Background ............................................................................ 5

2. Electric Physical Security Prior to Metcalf ..................................................... 9

3. Jurisdictional Issue ........................................................................................... 10

3.1. Position of CMUA, LADWP, NRECA and SMUD ............................ 11

3.3. Safety Policy Concerns Support Commission
Jurisdiction by POUs in Phase I ............................................................ 19

3.4. Phase II Jurisdiction ................................................................................ 22

4. The Joint Utility Proposal ............................................................................... 23

4.1. Identification ............................................................................................ 24

4.2. Assessment ............................................................................................... 26

4.3. Mitigation Plan ........................................................................................ 27

4.4. Verification ............................................................................................... 28

4.5. Records ...................................................................................................... 29

4.6. Timelines and Frequency ....................................................................... 30

4.7. Cost ............................................................................................................ 30

5. SED RASA Staff Evaluation of Joint Utility Proposal, Security Plan Element and SED RASA Recommendations ...................... 31

6. Guiding Principles of California Electric Physical Security ..................... 32

6.1. Six-Step Procedure to Address Utilities’ Distribution Assets .......... 32

6.2. Additional Requirements for Mitigation Plans .................................. 34

6.2.1. Additional Optional Requirements for Mitigation Plans ................... 35

6.3. Third-Party Verification ......................................................................... 36

6.4. Third-Party Expert Qualifications ........................................................ 37

6.5. Access to Information ............................................................................. 38

6.6. Timeline for Implementation ................................................................. 41

6.7. Reporting .................................................................................................. 41

6.8. Cost Recovery .......................................................................................... 42

7. Commission Position on Joint Utility Proposal and SED RASA Recommendations ........................................................................................... 43

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TABLE OF CONTENTS
Con’t.

Title Page
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9. Conclusion ........................................................................................................ 44

10. Comment Period.............................................................................................. 44

11. Assignment of Proceeding ............................................................................. 45 Findings of Fact ...................................................................................................... 45 Conclusions of Law ................................................................................................ 49 ORDER ..................................................................................................................... 50 Packet Pg. 502 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs

PHASE I DECISION ON ORDER INSTITUTING RULEMAKING

REGARDING THE PHYSICAL SECURITY

OF ELECTRICAL CORPORATIONS
Summary
This decision requires electric utilities to identify electric distribution assets that may merit special protection and measures to lessen identified risks and threats. In order to address the risk of long-term outage to a distribution facility, each Operator will develop and implement a Mitigation Plan. The Mitigation Plans will follow a six-step procedure for carrying out these new physical security plan requirements. The six-step plan is modeled on the security plan requirements set forth by the North America Electric Reliability Corporation (NERC) Critical Infrastructure Protocol (CIP)-014.

This decision requires the Investor Owned Utilities (IOUs) to prepare and submit to the Commission a preliminary assessment of priority facilities for their distribution assets and control centers (“covered assets”) within 18 months of this decision. An unaffiliated, third-party review of the plans should be completed within 27 months of this decision. Within 30 months of this decision, the IOUs will be required to submit their Final Security Plan Report. Within 30 months, each of the Publicly Owned Utilities (POUs) will be required to provide the Commission with notice that an independently-reviewed plan has been adopted.

Sections 8001-8057 of the Public Utilities Code compel the POUs to also adhere to this decision as it relates to physical security and Phase I of this proceeding.

Any new rules for emergency and disaster preparedness plans promulgated within Phase II of this proceeding will not apply to the POUs.

However, the POUs are strongly encouraged to participate in Phase II. This Packet Pg. 503 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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proceeding will remain open at the conclusion of Phase I to address Phase II issues.

1. Factual Background
In April 2013, a rifle attack at PG&E’s Metcalf Transmission Substation south of San Jose resulted in approximately $15.4 million in damages. Although PG&E initiated various changes to its security protocol, in late August 2014, burglars entered the Metcalf facility and removed $38,651 of tools and equipment.1 Changes were made to Pub. Util. Code § 364(a) as a direct result of the Metcalf incident, addressing the vulnerability of electrical supply facilities to physical security threats. Phase I of this proceeding was initiated by Senate Bill (SB) 699 (Stats. 2014, Ch. 550, Sec. 2).

The Federal government swiftly responded to the Metcalf attack, resulting in new additional provisions to the decade-old Critical Infrastructure Protocols (CIP). These were developed in a rulemaking conducted by the Federal Energy Regulatory Commission (FERC). FERC directed the North American Electric Reliability Corporation (NERC) to establish various criteria for determining which assets would be subject to the new CIP rules. The CIP rules cover both physical- and cyber-security rules.

The new CIP rules and requirements (CIP-014) require electric utilities to employ physical security plans as a way to address vulnerabilities. Among other things, CIP-014 applies to any asset deemed not redundant and for which failure of these assets could result in cascading power failures. These rules established a risk-based protocol that identifies critical transmission assets and control centers.

1 PG&E Metcalf Root Cause Analysis Summary Report. November 21, 2014, at 2.

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CIP-014 authorized FERC to establish a uniform, mandatory physical security standard for the nation’s transmission assets.

On June 11, 2015, the Commission issued an Order Instituting Rulemaking (OIR) to establish policies, procedures, and rules for the regulation of physical security risks to the electric supply facilities of electrical corporations consistent with Public Utilities (Pub. Util.) Code § 364 (Phase I) and to establish standards for disaster and emergency preparedness plans for electrical corporations and regulated water companies consistent with Pub. Util. Code § 768.6 (Phase II).2 SB 699 amended Pub. Util. Code § 364 and requires the Commission to develop rules for addressing physical security risks to the distribution systems of electrical corporations. Section 364 was amended by SB 699 to read:3 The commission shall … consider adopting rules to address the physical security risks to the distribution systems of electrical corporations. The standards or rules, which shall be prescriptive or performance based, or both, and may be based on risk management, as appropriate, for each substantial type of distribution equipment or facility, shall provide for highquality, safe, and reliable service.

Section 364(b) continues in relevant part that:

In setting its standards or rules, the commission shall consider: cost, local geography and weather, applicable

2 This decision addresses only Phase I issues. A decision addressing Phase II issues will be issued once Phase II of this proceeding has concluded.
3 Section 364 was subsequently amended by SB 697, effective January 1, 2016. The subsequent changes to § 364 after the passage of SB 699 can be found at the following link:
http://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=201520160SB697.

Although it might appear that the annual reporting requirement has been deleted from § 364, as a result of SB 697, this language has simply been relocated to § 590.

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codes, potential physical security risks, national electric industry practices, sound engineering judgment, and
experience. The commission shall also adopt standards for operation, reliability, and safety during periods of emergency and disaster. The commission shall require each electrical corporation to report annually on its compliance with the standards or rules. Except as provided in subdivision (d), that report shall be made available to the public.

Phase II of this proceeding was instituted as a result of Pub. Util. Code § 768.6 being added to the Pub. Util. Code by Assembly Bill (AB) 1650. It requires the Commission to:

Establish standards for disaster and emergency preparedness plans within an existing proceeding, including, but not limited to, use of weather reports to preposition manpower and equipment before anticipated severe weather, methods of improving communications between governmental agencies
and the public, and methods of working to control and
mitigate an emergency or disaster and its aftereffects.

This language bears similarities to the pre-amendment version of § 364(b), which states:

In setting its standards, the commission shall consider: cost, local geography and weather, applicable codes, national electric industry practices, sound engineering judgment, and experience. The commission shall also adopt standards for operation, reliability, and safety during periods of emergency and disaster.

Phase II of this proceeding is ongoing.

1.1. Procedural Background
An initial prehearing conference (PHC) was held on October 29, 2015. A supplemental PHC was conducted on February 2, 2017 and a Scoping Memo and Ruling was issued on March 10, 2017.

The scoping memo set forth the following issues to be addressed in this proceeding:

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1. What is currently in place in terms of physical security regulations at the state and federal level?

2. What are the key potential physical security risks to electrical distribution facilities?

3. What new rules, standards, or General Orders or
modifications to existing policies should the Commission consider to help mitigate physical security risks to
electrical distribution facilities?

4. Should the Commission go beyond the physical security regulations presented in the NERC CIP-014-2 physical
security regulations?

5. Should any new rules, standards, or General Orders or modifications to existing policies apply to all electrical supply facilities within the jurisdiction of the Commission, including publicly owned electrical utilities and rural electric cooperatives?

6. What regulations or standards should be established for small and multi-jurisdictional electric corporations?

7. What has changed since Metcalf and what still needs to be accomplished in terms of physical security?

8. Are there other factors not listed in Section 364(b) of the Pub. Util. Code that the Commission should consider
when adopting any new rules, standards, or General
Orders or modifications to existing policies during this rulemaking that will help to minimize attacks and the
extent of damages?

9. What new rules or standards or modifications to existing policies should the Commission consider to allow for
adequate disclosure of information to the public without disclosing sensitive information that could pose a physical security risk or threat if disclosed?

10. What is the role of cost and risk management in relation to the mitigation of any potential physical security risks to electrical supply facilities?
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11. Should any new rules, standards, or General Orders or modifications to existing policies the Commission
considers be prescriptive or performance based, or both?

12. What new rules, standards, or General Orders or
modifications to existing policies should the Commission consider to ensure continued operation, reliability and safety during periods of emergencies and disasters as it relates to the physical security of electrical facilities?

13. How should this rulemaking proceed in order to ensure consistency with the NERC, Federal Energy Regulatory
Commissions (FERC), the California Independent System
Operator (CAISO), the Department of Homeland Security
(DHS), the Federal Bureau of Investigations (FBI) and
other regulatory agency regulations?

14. What ongoing processes should be instituted to ensure confidentiality of physical security information while
providing adequate access to necessary information by the Commission4?
On July 12, 2017, the assigned Administrative Law Judge (ALJ) issued a ruling requesting that parties file a Straw Proposal for Physical Security Regulations (Joint Utility Proposal). The Joint Utility Proposal was filed on

4 Despite the sensitive nature of the documents involved, we remind the utilities that even without the compulsion of a subpoena, the Commission may under Pub. Util. Code Sections 313, 314, 314.5, 315, 582, 584, 591, 701, 702, 1794 and 1795, compel information from a public utility, and that Commission staff has the general investigatory authority of the Commission. Specifically, we remind the utilities that pursuant to these provisions the Commission may direct the utilities to provide the requested information in a place and form of the Commission’s choosing. Any confidential or sensitive information should be marked as confidential pursuant to Section 583, which mandates the non-disclosure of such information. and in accordance with the process for declaring exemptions from public disclosure per General Order 66 D adopted by D.17-09-023 in R.14-11-001, and revised by Assigned Commissioner’s Ruling of September 28, 2018.

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August 31, 2017.5 On September 14, 2017, the Office of Ratepayer Advocates (ORA)6 and the Electric Safety and Reliability Branch of the Safety and Enforcement Division (SED Advocacy) filed comments on the Joint Utility Proposal.

On January 3, 2018, the assigned ALJ issued a ruling allowing the parties to file legal briefs concerning the Commission’s jurisdiction over POUs and rural electric cooperatives. CMUA, LADWP, NRECA and SMUD filed a joint opening brief on January 26, 2018, opposing any attempt by the Commission to assert safety jurisdiction over the POUs and rural cooperatives. Also, on January 26, 2018, SED Advocacy7 and ORA filed briefs in support of the Commission’s ability to assert jurisdiction over the POUs. On February 9, 2018, CMUA, LADWP, NRECA and SMUD jointly filed a reply brief on the jurisdictional issue. SED Advocacy also filed a reply brief at the same time. On January 4, 2018, SED’s Risk Assessment and Safety Advisory (RASA) unit8

5 The parties to the Joint Utility Proposal are: Bear Valley Electric Service, California Municipal Utilities Association (CMUA), Los Angeles Department of Water & Power (LADWP), Liberty CalPeco, National Rural Electric Cooperative Association (NRECA), PacifiCorp, Pacific Gas & Electric Company (PG&E) Sacramento Municipal Utility District (SMUD), San Diego Gas & Electric Company (SDG&E) and Southern California Edison Company (SCE). 6 Senate Bill (SB) 854 (Stats. 2018, ch. 51) amended Pub. Util. Code Section 309.5(a) so that the Office of Ratepayer Advocates is now named the Public Advocate’s Office of the Public Utilities Commission. Because the pleadings in this case were primarily filed under the name Office of Ratepayer Advocates, we will refer to this party as ORA in this decision. 7 In this proceeding, SED Advocacy is represented by the Electric Safety and Reliability Branch (ESRB).
8 SED RASA is not a party in this proceeding but provides advisory support to the ALJ and Assigned Commissioner.

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completed its recommendations and analysis on the Joint Utility Proposal9 (RASA evaluation). On January 16, 2018, the assigned ALJ issued a ruling that made available the RASA evaluation as an attachment and that requested comments and reply comments on the RASA evaluation. Comments were filed on February 9, 2018 by SCE, SDG&E, ORA, SED, SMUD, LADWP, and NRECA.

Reply comments were filed on February 23, 2018 by the same parties. On March 2, 2018, SCE filed sur-reply comments.

2. Electric Physical Security Prior to Metcalf
Before the Metcalf incident, electric physical security in the United States had been voluntary and primarily directed at monitoring physical security incidents. In 2001, NERC issued guidelines prescribing new physical security requirements for electric utilities, and the Institute for Electric and Electronic Engineers (IEEE) published its own guidelines titled 1402-2000 IEEE Guide for Electric Power Substation Physical and Electronic Security.10 In 2010, the National Infrastructure Advisory Council, in conjunction with the U.S. Department of Homeland Security (DHS), issued A Framework for Establishing Critical Infrastructure Resilience Goals11 which defined resilience as the ability to reduce the magnitude and/or duration of disruptive events. The report noted the potential for public agencies to enhance the resilience of the electricity

9 Safety & Enforcement Division’s Risk Assessment & Safety Advisory (RASA) section evaluation of the Joint Utility Proposal and Recommendations for Consideration available at http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M204/K457/204457381.PDF 10 https://standards.ieee.org/standard/1402-2000.html.
11 https://www.dhs.gov/publication/niac-framework-establishing-resilience-goals-finalreport.

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sector through policy, planning, standards and regulations. The report also stressed the importance of improving access to information regarding threats.

Early in 2013, Presidential Policy Directive 2112 established Federal agencies’ roles regarding physical- and cyber-security threats. These policies reemphasized the need for a collaborative approach to security and risk assessment, with the U.S. Department of Energy (U.S. DOE) overseeing issues related to the electric utility sector through the newly-formed Electric Subsector Coordinating Council (ESCC).

3. Jurisdictional Issue
When this rulemaking was initiated, CMUA, LADWP, NRECA and SMUD objected to any attempt to have either Phase I or II of this proceeding be applicable to them. They assert that the Commission does not have jurisdiction to assert any new regulations on them. SED and ORA argue that there is an underlying safety concern which mandates that this rulemaking apply to them.

CMUA, LADWP, NRECA and SMUD actively participated in Phase I of this proceeding. The insight and knowledge that they brought to this proceeding was valuable and the Commission acknowledges their engagement and contributions. Working together has allowed us to develop an extremely important set of standards to help ensure the safety of all residents in California.

The Joint Parties agreed to fully participate in Phase I and address the issue of jurisdiction in legal briefs near the conclusion of Phase I. The Commission recognizes the high level of cooperation among everyone involved

12 https://obamawhitehouse.archives.gov/the-press-office/2013/02/12/presidential-policydirective-critical-infrastructure-security-and-resil.

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with Phase I and encourages continued cooperation by everyone in Phase II. We will now address why new Phase I rules apply to the POUs.

3.1. Position of CMUA, LADWP,
NRECA and SMUD
The POUs contend that Commission jurisdiction over POUs’ physical security is not supported by (1) the statutory language, (2) legislative history, (3) case law, or (4) policy.
(1) Statutory Language and Legislative History
The POUs argue that Article XI, Section 7 of the California Constitution provides certain POUs with the authority to own and operate their own utility systems and self-regulate their operations, and that the statutory and legislative history demonstrate that SB 699 was not intended to apply to the POUs. SB 699 amended § 364 to provide that “[t}he Commission shall … in a new proceeding … consider adopting rules to address the physical security risks to the distribution systems of electrical corporations.”13
The POUs argue they are not “electrical corporations” as traditionally defined in § 218,14 and that nothing in § 364 provides the Commission with authority to adopt such rules for the POUs.15 Moreover, they argue that POUs do not fall within the meaning of “electrical corporations” referenced in § 364(a).

In support of this argument, the POUs quote extensively from SB 699 legislative reports that appear to exclusively discuss IOUs or expressly state that POUs “are

13 Id. At 8.
14 Opening Brief of CMUA, LADWP, NRECA and SMUD at 10.
15 Id. At 13.

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self-governing by a local government.”16 They state that because the POUs are not electrical corporations and the legislature did not explicitly refer to POUs in § 364(a), it clearly intended to have the requirements of this provision apply solely to the IOUs.

The POUs also state that nowhere in §§ 8001-8057 did the Legislature provide mechanisms for the Commission to enforce its adopted regulations against a POU.17 Additionally, they state that § 2107 of the Pub. Util. Code, which grants the Commission authority to perform investigations and levy fines against the IOUs, does not apply to the POUs, and the Commission therefore lacks the authority to levy fines or penalties against them. (2) Case Law
In addition to statutory language and legislative history, the POUs rely on County of Inyo v. Pub. Util. Comm’n18 for the proposition that the Commission has no jurisdiction over them without express statutory authorization. (3) Public Policy Considerations
The POUs also argue that exempting POUs from the rulemaking would not pose a public safety threat because POUs are beholden to their local boards and oversight bodies, which are typically directly-elected officials put in office by local voters. Because POU customers, the POUs explain, ultimately have the ability to vote in or out POU board members, the POUs are held accountable and function under close scrutiny of their local communities.

16 LADWP Opening Comments, July 22, 2015 at 3-5.
17 Joint Parties Opening Brief at 26-27.
18 County of Inyo v. Pub. Util. Comm’n, 26 Cal. 3d 154 (1980) (Tobriner, J.).

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In 1996, the Legislature adopted § 364. Section 364(a) required the Commission to “adopt inspection, maintenance, repair, and replacement standards.” These maintenance and inspection standards were promulgated and applied to IOUs in D.97-03-070. The standards were later applied to POUs in D.98-03-036. CMUA asked for rehearing on the issue of jurisdiction over POUs, which the Commission denied in D.98-10-059. CMUA then filed a petition to modify D.98-03-036 and vacate D.98-10-059. This second petition was denied in D.99-12-052.

Meanwhile, § 364(b) required the Commission to “adopt standards for operation, reliability, and safety during periods of emergency and disaster.” These emergency response standards were proposed in D.98-03-036 and applied to IOUs in D.98-07-097. However, D.98-07-097 clarified that the emergency response standards did not apply to POUs.

D.98-03-036 and D.98-10-059 attempt to explain why the Commission has jurisdiction over POUs with respect to § 364(a) inspection and maintenance standards but not with respect to § 364(b) emergency response standards.

Specifically, D.98-03-036 asserts that under §§ 8001-8057, the “Commission has historically had authority over the public safety aspects of publicly-owned utilities. . . ‘for the purpose of safety to employees and the general public.’”19 The Commission further noted that it not only has the authority to regulate public safety aspects of the publicly-owned utilities' operations, but that it has a duty to do so under PU Code § 8037 and § 8056, which expressly required the Commission to enforce such rules against POUs.20 The Commission’s

19 D.98-03-036 at 13.
20 D.98-03-036 at 8.

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jurisdiction over maintenance and construction was affirmed by the California Supreme Court in Polk v. City of Los Angeles.21 The Legislature did not alter the Commission’s jurisdiction when it enacted § 364(a); the Commission therefore rightly concluded that it could apply the maintenance and construction standards to POUs.22
CMUA argued that §§ 8001-8057 did not confer jurisdiction on the Commission to regulate the public safety aspects of POUs, and characterized Polk as merely holding that Commission safety rules established a POU’s duty of care in a negligence action. D.98-10-059 rejected CMUA’s arguments.

More recently, the Commission summarized its jurisdiction over POUs in R.08-11-005: “Under Pub. Util. Code §§ 8002, 8037, and 8056, the Commission’s jurisdiction extended to publicly-owned utilities for the limited purpose of adopting and enforcing rules governing electric transmission and distribution facilities to protect the safety of employees and the general public.”23

3.2. Legal Precedent
We now turn to the case law beyond these prior Commission precedents.

Both the POUs and SED Advocacy rely on County of Inyo24 to support contrary positions. In County of Inyo, Inyo County initiated a complaint proceeding against LADWP over water rates charged to the County and its residents.25 Inyo

21 Polk v. City of Los Angeles, 26 Cal. 3d 519 (1945).
22 The jurisdictional analysis in D.98-03-036 was written confusingly. In D.98-07-097, the Commission clarified that the emergency response standards did not apply to POUs but did not explain further.
23 D.09-08-029 at 8.
24 County of Inyo v. Pub. Util. Comm’n, 26 Cal. 3d 154 (1980) (Tobriner, J.). 25 Id. at 156.

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County argued there was a practical need for Commission regulation because Inyo residents could not vote in Los Angeles elections and thus had no political remedy for unreasonable water rates charged by LADWP.26 The Commission, however, dismissed the complaint for want of jurisdiction over POUs, as the Legislature had not included POUs “within the classes of regulated public utilities in divisions 1 and 2 of the Public Utilities Code.” Although the California Supreme Court determined that Commission jurisdiction over POUs was a constitutional possibility, as legislation conferring PUC jurisdiction “would fall clearly within the scope of present article XII, section 5 [of the California Constitution],” it also found that the Legislature had never enacted such a statute to confer jurisdiction.27 Therefore, despite the equities favoring Inyo County and its residents, the Court was obliged to affirm the Commission’s dismissal.

In this proceeding, the POUs argue that “the plain language of Section 364 and SB 699’s legislative history both confirm that POUs are outside the scope of this OIR” because there is no statute granting jurisdiction.28 In D.98-10-059, the Commission cited to County of Inyo for the proposition that “Article XII, section 5 authorizes the Legislature’s grant of jurisdiction” over POUs.29 However, that decision concluded that Commission jurisdiction over POUs was granted not by § 364, but by §§ 8001-8057, which expressly confer jurisdiction to regulate electric lines for public safety purposes. The Commission

26 Id. at 156, 158-59.
27 Id. at 164.
28 LADWPLADWT Opening Cmt. at 5.
29 D.98-10-059 at 3.

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reasoned that because §§ 8001-8057 were not limited to IOUs and § 364 did not purport to restrict Commission jurisdiction, it could enforce § 364 against POUs under §§ 8001-8057. “Moreover,” D.98-10-059 noted, “the Commission’s jurisdiction is liberally construed” under Consumers Lobby Against Monopolies v. Pub. Util. Comm’n,30 and therefore “the absence of a specific statutory authorization [did] not necessarily deprive the Commission of jurisdiction.”31 As correctly noted in the Opening Brief of ORA, the Commission has consistently affirmed its jurisdiction to regulate safety issues concerning POUs.

In D.98-03-036, the Commission held that pursuant to the Pub. Util. Code, it has the authority and duty to regulate and enforce safety aspects of the POUs.32 ORA contends that the CPUC subsequently affirmed this determination in D.09-08-029 and D.10-02-034.33 In D.09-08-029, the CPUC concluded that, as a matter of law, its jurisdiction “extends to POUs for the limited purpose of adopting and enforcing rules governing electric transmission and distribution facilities to protect the safety of employees and the general public.”34 Polk35 provides a basis to exercise Commission jurisdiction over POUs with respect to electric lines. In Polk, a tree trimmer was injured after a fall from a ladder caused by an electric shock from an overhead power line with worn insulation operated by the City of Los Angeles in its capacity as a municipal

30 Consumers Lobby Against Monopolies v. Pub. Util. Comm’n, 25 Cal. 3d 891, 905 (1975). 31 D.98-10-059 at 4.
32 ORA Opening Brief at 5.
33 See Id.
34 D.09-08-029, Conclusion of Law Number (No.) 3.
35 Polk v. City of Los Angeles, 26 Cal. 3d 519 (1945).

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utility.36 The overhead line was not maintained in accordance with General Order (GO) 64-A, a predecessor to GO 95, which prescribes rules for the design, construction, and maintenance of overhead lines.37 At trial, the implied violation of GO 64-A was used to establish the duty of care for the municipal utility as well as the resultant breach.38
On appeal before the California Supreme Court, the city argued that the Commission lacked jurisdiction over POUs and thus its safety rules could not prescribe POUs’ duty of care. The Court conceded that, as a general matter, the Commission did lack jurisdiction over POUs, but then proceeded to state an exception for electric lines.

The Polk Court first observed that the predecessor statutes to §§ 8002, 8003, 8037, and 8056 applied by their express terms to municipalities and empowered the Railroad Commission (before it was reconstituted as the Public Utilities Commission) to inspect all electric lines and “make such further additions or changes as said commission may deem necessary for the purposes of safety to employees and the general public.”39 The Court then noted that the regulations which established the duty of care, GO 64-A, were promulgated pursuant to the foregoing statutory provisions. Because “[t]here can be no doubt that the Legislature was empowered to pass such a statute and make it

36 Id. at 523-24.
37 Id. at 538-39.
38 Id. at 542 (Commission has “duty of making safety rules and regulations applicable to privately owned public utilities, and it is clear that such rules and regulations establish the standard of care . . . We can perceive of no reason why the same standard of care should not be applicable to all utilities whether publicly or privately owned.”). 39 Id. at 540.

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applicable to [POUs]” and because “danger to the public is a matter of state concern,” POUs were subject to the Commission’s rules for electric lines.40 The Court’s analysis is essentially the same as the Commission’s in D.98-10-059, which denied rehearing of the decision to apply the § 364(a) maintenance and inspection rules to POUs.

In Polk, the Court noted that “safety rules are in reality not regulations or the exercise of control by the commission” but are “nothing more than safety requirements in which the entire state has an interest.”41 The Commission reiterated that point in its conclusion about jurisdiction in D.98-10-059. The Court sanctioned the use of GO 64-A to prescribe POUs’ duty of care on the basis that the Legislature had long since authorized the Commission to inspect electric lines, including those owned by local governments, in the interest of public safety. In Polk, the Court noted that Commission authority over the public safety aspects of POUs’ operation is derived from the overriding statewide concern for public safety. The Polk Court found that “the safety of overhead wire maintenance is a matter of statewide rather than local concern, the state law is paramount.”
Sections 8001-8057, read in light of the Polk decision, make it clear that the Commission has the authority to apply physical security rules created through this rulemaking to the POUs. The Legislature granted the Commission the power to make “further additions or changes as the Commission deems necessary for the purpose of safety to employees and the general public.”42 The

40 Id. at 540-41.
41 Id. at 541.
42 Public Utilities Code §§ 8037, 8056.

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Commission is relying on this authority to set minimum standards to ensure the physical security of the State’s electric grid, which is operated by both investor owned utilities and publicly owned utilities.

The rationale employed by the Polk Court applies even more forcefully in the present case, given the increased importance of electric service and the distribution grid, and the interconnected nature of the grid. The Legislature has directed the Commission to ensure the safety of employees and the public. That includes not only ensuring that wires are clear from accidental contact but also that the electrical systems are safe from intentional intrusions by bad actors. As the need to ensure the public safety of electric infrastructure is greater now, more so than ever before, the Commission’s regulatory mandate is also correspondingly enhanced.

3.3. Safety Policy Concerns Support Commission
Jurisdiction by POUs in Phase I
The physical security rules contemplated by the amended version of § 364(a) are similar to the maintenance and inspection rules contained in GO 165 and made applicable to POUs by D.98-03-036. Given this context, it is notable that the Legislature did not insert any language in the amended version of § 364(a) restricting the Commission’s jurisdiction.

Moreover, even without § 364, the Commission has authority to make the new physical security rules applicable to POUs, as the statutory provisions which enabled the application of GO 64-A in Polk are virtually identical to §§ 8001-8056.

As noted above, Sections 8037 and 8056 authorize the Commission to “inspect all work” relating to surface and underground transmission and “make such further additions or changes as the commission deems necessary for the purpose of safety to employees and the general public.” Section 8002 states that Packet Pg. 520 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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the term “person” includes any “commission, officer, agent, or employee of this State, or any county, city, city and county, or other political subdivision thereof, and any other person, firm, or corporation.” Based on these statutory provisions, D.98-03-036 made GO 165 applicable to POUs.

Sections 8001-8057 expressly apply to local government entities and authorize the Commission to promulgate new rules to ensure the safety of electrical lines. The mandate in § 364(a) to enforce “inspection, maintenance, repair, and replacement standards” is consistent with §§ 8001-8057, and Polk indicates that those statutory provisions provide sufficient statutory authority to extend the Commission’s physical security rules to POUs.

The POUs argue that the Commission’s jurisdiction over them is limited and it is inappropriate for the Commission to use statewide concerns about safety to expand the scope of the Commission’s jurisdiction.43 They do concede that Commission decisions relating to safety may be relevant to the POUs to the extent that they represent industry standards.44 In view of the Commission’s mandate to ensure the safety of the State’s electric grid, the Legislature tasked it with developing standards for the overhead and underground electrical systems.

The authorizing statutes specifically grant the Commission authority to develop these standards and ensure compliance with them, not just by IOUs, but also the POUs.45 The POUs state that by applying new physical security rules to them, the

43 Joint Opening Comments at 4.
44 Id.
45 Public Utilities Code section 8002.

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Commission is encroaching on the domain of the public entities’ police, fire and safety departments. This argument is without merit. Precedent, public policy considerations and longstanding Commission practice provides the Commission with sufficient basis in this particular case to extend physical security rules to POUs. The Commission already possesses jurisdiction over the POUs, for the purposes of setting, and ensuring compliance with, standards for their electrical grids to ensure safety. The Commission does not intend in any way to usurp the role of the public utilities’ police, fire and safety departments. The rules set forth in this decision are the minimum standards to ensure the physical security of the State’s electric grid. The POUs’ governing bodies may, of course, prescribe standards that go above and beyond these requirements.

The major focus of Phase I of this proceeding is to address the risks and threats of a long-term outage to a distribution facility. Clearly, a long-term outage at any distribution facility poses numerous safety issues, whether it be at an IOU or POU facility. The Commission was tasked with establishing industry standards to help reduce the risk and threats of a long-term outage. Minimizing the risks to distribution systems throughout the state promotes public safety and helps to establish industry standards. Further, as the Commission noted in D.98- 10-059, electrical disruptions can affect neighboring utilities, regardless of their ownership: “emergencies or power outages with a municipal utility’s service area can have effects on the State’s grid that are not confined to that utility’s electric system.”46 Threats to the electrical grid and public safety do not discriminate based on the utility’s ownership. Therefore, we conclude that it is

46 D.98-10-059 at p. 4.

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within the authority and jurisdiction of the Commission to have these standards apply to both the IOUs and the POUs.

We now will briefly address the issues raised concerning § 2107, which grants the Commission authority to perform investigations and levy fines against the IOUs. It is the intention of the Commission to use Phase I of this proceeding to establish systemwide industry standards that are aimed at addressing the potential risks and threats associated with a long-term outage at a distribution facility on a statewide basis, and we are optimistic that the POUs, having participated extensively in the proceeding, will adhere to these standards. This proceeding is not designed to expand Commission investigatory or penalty authority against the POUs beyond what it already possesses.

3.4. Phase II Jurisdiction
The POUs assert that neither the Pub. Util. Code nor public policy supports the exercise of Commission jurisdiction over emergency and disaster preparedness planning for Phase 2.

As originally enacted, § 364(b) required the Commission to “adopt standards for operation, reliability, and safety during periods of emergency and disaster.” However, in D.98-03-036 and D.98-07-097, the Commission clarified that the emergency response rules could not be applied to POUs. The Commission concluded that because §§ 8001-8057 do not relate to emergency and disaster preparedness, those provisions do not support the exercise of Commission jurisdiction over POUs with respect to emergency and disaster preparedness.

This conclusion is still sound, as § 768.6 does not evince a Legislative intent to alter the status quo by expanding the Commission’s jurisdiction. We therefore conclude that adherence to proposed Phase II rules concerning disaster and Packet Pg. 523 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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emergency preparedness plans shall not be required of the POUs. Although not bound by Commission rules pertaining to disaster and emergency preparedness plans, the POUs are encouraged to participate in Phase II of this proceeding and to adopt resulting best practices to the extent they find them useful and appropriate. Consistency on a statewide level as it relates to emergency and disaster preparedness plans is a desirable goal. POU participation will advance this aim.

4. The Joint Utility Proposal
To meet the requirements of SB 699, SED RASA conducted a series of four physical security workshops from May to September 2017. In connection with these four workshops, a technical working group was formed by the parties which submitted the Joint Utility Proposal to provide guidance for compliance with § 364.

The Joint Proposal describes how a utility should establish a Distribution Substation and Distribution Control Center Security Program (Distribution Security Program).47 The Distribution Security Program consists of the following: 1) Identification of distribution facilities, 2) Assessment of physical security risk on distribution facilities, 3) Development and implementation of security plans, 4) Verification, 5) Record keeping, 6) Timelines and 7) Cost recovery.

The following is a summary of the utility working group’s Joint Proposal:

47 The Joint Utility Proposal defines Distribution Substation as an electric power substation associated with the distribution system and the primary feeders for supply to residential, commercial and/or industrial loads. A Distribution Control Center is defined as a facility that has responsibility for monitoring and directing operational activity on distribution power lines and Distribution substations.

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4.1. Identification
In accordance with the general direction of SB 699, the intent of the Joint Utility Proposal is to implement a risk management approach towards distribution system physical security, with appropriate consideration for resiliency, impact and cost. The Joint Utility Proposal sets forth a set of general principles that derive from information described and evaluated during the workshops. These principles note the following:

1. Distribution systems are not subject to the same physical security risks and associated consequences, including
threats of physical attack by terrorists, as the transmission system.

2. Distribution utilities will not be able to eliminate the risk of a physical attack occurring, but certain actions can be taken to reduce the risk or consequences, or both, of a significant attack.

3. A one-size-fits-all standard or rule will not work.

Distribution utilities should have the flexibility to address physical security risks in a manner that works best for their systems and unique situations, consistent with a risk
management approach.

4. Protecting the distribution system should consider both physical security protection and operational resiliency or redundancy.

5. The focus should not be on all Distribution Facilities, but only those that risk dictates would require additional
measures.

6. Planning and coordination with the appropriate federal and state regulatory and law enforcement authorities will help prepare for attacks on the electrical distribution system and thereby help reduce or mitigate the potential consequences of such attacks.

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Consistent with these general principles, the Joint Utility Proposal suggests various criteria to provide Operators48 with guidance needed to identify Distribution Facilities49 requiring further assessment.

Specifically, the Joint Utility Proposal sets forth the following as facilities requiring such assessments:

1. Distribution Facility necessary for crank path, black start or capability essential to the restoration of regional electricity service that are not subject to the California Independent System Operator’s (CAISO) operational control and/or
subject to North American Electric Reliability Corporation (NERC) Reliability Standard CIP-014-2 or its successors;

2. Distribution Facility that is the primary source of electrical service to a military installation essential to national security and/or emergency response services (may include certain air fields, command centers, weapons stations,
emergency supply depots);

3. Distribution Facility that serves installations necessary for the provision of regional drinking water supplies and
wastewater services (may include certain aqueducts, well fields, groundwater pumps, and treatment plants);

4. Distribution Facility that serves a regional public safety establishment (may include County Emergency Operations
Centers; county sheriff’s department and major city police department headquarters; major state and county fire
service headquarters; county jails and state and federal prisons; and 911 dispatch centers);

5. Distribution Facility that serves a major transportation facility (may include International Airport, Mega Seaport,

48 An Operator is an Electrical Corporation, a Local Publicly Owned Electric Utility, or an Electrical Cooperative responsible for the reliability of one or more Distribution Facilities. 49 A Distribution Substation or Distribution Control Center.

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other air traffic control center, and international border crossing);

6. Distribution Facility that serves as a Level 1 Trauma Center as designated by the Office of Statewide Health Planning and Development; and

7. Distribution Facility that serves over 60,000 meters.

4.2. Assessment
After the Operator has identified any Distribution Facility requiring additional assessment (“Covered50 Distribution Facility”), the operator will conduct an evaluation of the potential risks associated with a successful physical attack on such a facility or facilities and whether existing grid resiliency, requirements for customer-owned back-up generation and/or physical security measures appropriately mitigate identified risks. In doing so, the Operator may consider the following:

1. The existing system resiliency and/or redundancy
solutions (e.g., switching the load to another substation or circuit capable of serving the load, temporary circuit ties, mobile generation and/or storage solutions);

2. The availability of spare assets to restore a particular load;

3. The existing physical security protections to reasonably address the risk;

4. The potential for emergency responders to identify and respond to an attack in a timely manner;

5. Location and physical surroundings, including proximity to gas pipelines and geographical challenges, and impacts of weather;

50 “Covered” is the utility working group term employed to describe those assets that are applicable, or that should be subject to physical security. We will employ this term for the length of this decision for the sake of consistency.

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6. History of criminal activity at the Distribution Facility and in the area;

7. The availability of other sources of energy to serve the load (e.g., customer owned back-up generation or storage
solutions);

8. The availability of alternative ways to meet the health, safety, or security; and

9. requirements served by the load (e.g., back up command center or water storage facility).

4.3. Mitigation Plan
In order to address the risk of a long-term outage to a Covered Distribution Facility due to a physical attack, each Operator will develop and implement a Mitigation Plan51. The Operator should have discretion to select the specific security measures that are most appropriate for the Covered Distribution Facility. The Mitigation Plan will include consideration of the costs associated with any physical security improvements. In developing the Mitigation Plans, the Operator may also consider local geography and weather, engineering judgment and its own experience.

In developing Mitigation Plans, Operators may use risk-based performance standards to identify the means by which a Covered Distribution Facility’s security can be upgraded (e.g., perimeter security, improved monitoring) and its resiliency improved (e.g., timely access to spare equipment, the ability to serve in whole or in part from another facility or circuit, back-up generation or storage). A performance standard specifies the outcome required

51 The documentation of a risk-based strategy for mitigating the impacts of a physical attack on a Covered Distribution Facility. The strategy may consist of operational resiliency measures or physical security measures.

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but leaves the specific measures to achieve that outcome up to the discretion of the Operator. The goal in this case is to reduce the risk and/or consequences of a successful physical attack on a Covered Distribution Facility and provide a variety of solutions to mitigate the risk and/or consequences and achieve the goal.

Examples of potential resiliency and security solutions that could be deployed to address identified risks and are not meant to be binding or definitive or to be required for any particular Distribution Facility include, but are not limited to:

Examples of Potential Resiliency Solutions:

1. Strategically Located Spares – Strategically locate spare equipment to facilitate the repair of a Covered Distribution Facility;

2. Distribution Resiliency Upgrades – Adding circuit ties or other facilities to enhance the ability to switch around damaged facilities to facilitate the repair and restoration of service;

3. Enhanced Resiliency Response – Develop response
strategies for temporarily restoring service (e.g., mobile generation/storage, jumper from an adjacent circuit);
Examples of Potential Security Solutions:

1. Access – Measures to limit unauthorized entry or breach of the facility (e.g., fencing, gates, barriers or other security devices);

2. Deterrent – Measures to discourage unauthorized entry or breach of the facility (e.g., cameras, lights); and
Coordination – Measures to further collaborate with law enforcement as appropriate.

4.4. Verification
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In order to evaluate each Mitigation Plan(s), each Operator will select an unaffiliated third party with the appropriate experience needed to review the Identification and Assessment evaluations and the Mitigation Plan(s) performed and developed by the Operator. After the Mitigation Plans have been evaluated, the Operator should either modify its Mitigation Plan to be consistent with the recommendations or document its reasons for not doing so.

4.5. Records
Adequate record retention is important to ensure each utility’s Mitigation Plan is successful. Electronic or hard copy records of the Distribution Security Program implementation will be retained for not less than five (5) years. Such records are extremely confidential and will be maintained in a secure manner at the Operator’s headquarters. The records maintained by an Operator will be available for inspection at its headquarters or San Francisco offices by Commission staff upon request.

Electronic or hard copy records of the Operator’s Distribution Security Program Implementation will include, at a minimum:
1) The Operator’s Identification of Distribution Facilities requiring further assessment;
2) Each Operator’s Assessment of the potential threats and vulnerabilities of a physical attack and whether existing grid resiliency, customer-owned back-up generation
and/or physical security measures appropriately mitigate the risks on each of its identified Distribution Facilities; 3) Each Operator’s Mitigation Plans covering each of its Covered Distribution Facilities under Section 4;
4) The unaffiliated third-party evaluation of the Operator’s Identification and Assessment evaluations and Mitigation Plans performed and developed by the Operator; and
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5) If applicable, the Operator’s documented reasons for not modifying its Mitigation Plans consistent with the
unaffiliated third-party’s evaluation.

4.6. Timelines and Frequency
Any Operator that has identified at least one Distribution Facility requiring further assessment whose risks are not found to be appropriately mitigated during the verification phase will complete an initial draft of its Mitigation Plan(s), within eighteen (18) months from the effective date of these guidelines.

Where the Operator is required to seek verification, the Operator will obtain an unaffiliated, third-party review within twenty-seven (27) months from the effective date of these guidelines. Each Operator will meet all obligations set out in this decision within thirty (30) months of the effective date of these guidelines.

4.7. Cost52
The IOUs propose that at its discretion, the Operator may establish an account to track the expenditures associated with the development and execution of its Distribution Security Program. IOUs request authorization to file Tier 1 Advice Letters for this purpose. Electrical Cooperatives and POUs would act in accordance with any processes established by a governing or other type of board with the requisite authority.

IOUs also recommend that they be authorized to file separate applications or GRC requests for the recovery of costs associated with their respective

52 The issue of costs discussed in this section are the positions advanced by the IOUs. We decline to implement the cost recovery measures suggested by the IOUs. Rather, they will follow the cost recovery methods as set forth in Section 6.8 below.

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Distribution Security Programs. Although the Distribution Security Program documents are considered security-sensitive information and cannot be filed as supporting documentation, the IOUs may file a public version of the unaffiliated third-party review and Commission approval in support of their recovery requests.

5. SED RASA Staff Evaluation of Joint Utility Proposal, Security Plan Element and SED RASA Recommendations
Four workshops were conducted during Phase I of this proceeding. The first three workshops identified and explored the regulatory framework that currently exists for assessing physical security and how new regulations could be drafted. The utilities presented the Joint Utility Proposal at the fourth workshop.

In addition to being actively involved with the workshops, SED RASA analyzed the Joint Utility Proposal and made various recommendations. This analysis was made available to the parties on January 16, 2018 within a ruling by the assigned ALJ. The parties filed both comments and reply comments on SED RASA’s evaluation. SED RASA thoroughly considered all comments and reply comments, and in response undertook additional evaluation, and revisited its original set of recommendations.

The Joint Utility Proposal would introduce new requirements covering electric assets that support distribution-level service within California’s regulatory and safety jurisdiction. These assets, largely substations and control centers, do not typically rise to the level of critical infrastructure as defined in the federal Critical Infrastructure Protocols (CIPs). Yet, they are essential for providing reliable energy to residential, commercial and industrial loads.

In addition to the new rules and measures articulated by the Joint Utilities in their Proposal, as outlined in Section 4 above, SED RASA recommends additional new rules and measures, and guiding principles, above and beyond Packet Pg. 532 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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those outlined in Section 4, to further strengthen the Joint Utility Proposal. These items are detailed below.

6. Guiding Principles of California
Electric Physical Security
1) Costs of incremental physical security measures should be reasonable, controlled, and weighed against potential
benefit, so they do not result in a burden to ratepayers. 2) Opportunities to incorporate high-benefit, low-cost
measures should be captured, particularly at the time of new or upgraded substation construction.
3) Distribution assets should be hardened or designated with consideration for ensuring service integrity to essential customers, among other factors identified in the Joint
Proposal.
4) Resiliency strategies to ensure that priority distribution assets, particularly those tied to service of essential customers remain in service and are able to rapidly recover from an unplanned service outage should be considered an equally effective response to addressing physical security risks.

6.1. Six-Step Procedure to Address
Utilities’ Distribution Assets
SED RASA recommends the following six-step procedure for carrying out new physical security plan requirements to address utilities’ distribution assets.

These proposed steps are modeled on the security plan requirements set forth by NERC CIP-014.

This six-step plan is as follows:

Step 1. Assessment. Drafting of a plan, addressing
prevention, response, and recovery, which could be prepared in-house or by a consultant, and which shall include proposed and recommended mitigation measures.

Step 2. Independent Review and Utility Response to
Recommendations. Proposed plan would be reviewed and by Packet Pg. 533 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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an independent third party, likely a qualified consultant expert, national laboratory, or a regulatory or industry standard body (such as the Electric Power Research Institute).

Step 2 would include reviewer recommendations that assess and appraise the appropriateness of the risk assessment, proposed mitigation measures, and other plan elements. A utility would be expected to fully address reviewer
recommendations, including justifying any mitigations that it declines to accept; the independent third-party
opinion/recommendations, utility response, threat and risk assessment, and mitigation measures combined would
constitute a final plan report.

Step 3. SED Review (for IOUs only). Final plan report would be reviewed by the CPUC SED (recurring every five years)53 so as to determine whether it is in compliance with regulatory requirements, and eligible to request funding for
implementation. Upon five years from the date of adoption, a utility would be required to have any revised or original plan updated and repeat the review process. Utilities may be afforded regulatory relief by way of an exemption request process for special cases where undertaking of the plan overhaul and/or review process may be impracticable or
unduly burdensome. Non-compliance could result in an
enforcement action, potentially resulting in sanctions and/or penalties as provided by PU Code Sec. 364(c). An SED
finding of compliance would render IOUs eligible to request funding for appropriate physical security needs identified by IOUs; project expenditures would be tracked in a
memorandum account and subject to reasonableness review in the GRC.

53 This time interval is based on the requirements instituted for the City of Los Angeles under City Charter.

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Step 3a. Plan Review (for POUs only). Final plan report would be deemed adequate (recurring every five years, and eligible for same exemption request process made available to the IOUs) by a qualified authority designated by the
applicable local governance body. (For example, Riverside Public Utilities currently develops a security and emergency response plan that conforms to the Governor’s Office of Emergency Services (CalOES) and Federal Emergency
Management Agency (FEMA) standards and receives their
endorsement.)
Step 4. Adoption (for POUs only). Reviewed plan would be submitted to the appropriate regulatory oversight body (local governance body) for review and greenlighting (adoption).

Step 4 should include funding to implement the plan.

Step 4a. Notice. (for POUs only). Provide CPUC with official notice (ideally including a copy of a resolution of the adopted plan action.

Step 5. Maintenance. Ongoing adopted plan refinement and updates as appropriate and as necessary to preserve plan integrity. All security plans should be concurrent with and integrated into utility resiliency plans and activities.

Step 6. Repeat Process. Plan overhaul and review every five years.

For now, the Commission finds the process described above, adequate.

Should the Commission subsequently find that a more structured and formal process of Security Plan approval is desirable or changes to the Security Plans themselves, the Commission could make such determination via resolution or a decision based upon a developed record. Changes to Security Plan requirements may also be done by SED (or successor entity) director letter.

6.2. Additional Requirements for Mitigation Plans
These additional requirements are:

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1. California electric utilities shall, within any new or renovated distribution substation, incorporate and design their facilities to incorporate reasonable security features.

2. Utilities’ security plans shall include a detailed narrative explaining how the utility is taking steps to implement:
(a) An asset management program to promote
optimization and quality assurance for tracking and
locating spare parts stock, ensuring availability and the rapid dispatch of available spare parts;
(b) A robust workforce training and retention program to employ a full roster of highly-qualified service
technicians able to respond to make repairs in short
order throughout a utility’s service territory using spare parts stockpiles and inventory;
(c) A preventative maintenance plan for security
equipment to ensure that mitigation measures are
functional and performing adequately; and,
(d)A description of Distribution Control Center and
Security Control Center roles and actions related to
distribution system physical security (this item would
be for IOUs only).

6.2.1. Additional Optional Requirements for
Mitigation Plans
The Commission highly encourages and recommends the following optional security measures and best practices:

1. A training program for appropriate local law enforcement and utility security staff to optimize communication
during a physical security event. Training for law
enforcement should include information on physical
infrastructure and relevant utility operations;

2. A determination of the vulnerability of any associated communication utility infrastructure that supports priority distribution assets, which if deemed to be vulnerable,
should have appropriate mitigation measures prescribed; and
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3. Incorporating into applicable new and renovated or
upgraded utility facilities design features that promote a sense of order and ownership, increase surrounding
visibility and sightlines, capture opportunities for
defensibility, and confound intrusion attempts by delaying and frustrating attackers via strategic placement of assets.

These concepts, well-established within and embraced by the power industry and other applications, are encouraged and called out by NERC within CIP-014 guidelines as
Defense in Depth and Community Protection through
Environmental Design.

The Commission finds that these additional measures hold potential for increasing grid resilience and reliability, but declines at this time to make the measures obligatory,
recognizing the utilities’ work ahead to master new physical security regulations and complete their first iteration of mitigation plans and annual reports. 6.3. Third-Party Verification As noted in Section 6.1 above (“Step 2. Independent Review and Utility Response to Recommendations”), a required third-party review shall occur in tandem with completion of a list of recommended mitigation measures.54 The third-party reviewer shall prepare recommendations on appropriate mitigation measures and/or a statement supporting or rejecting proposed mitigation measures. This statement shall contain justification for the acceptance or rejection of each proposed mitigation measure.

Each utility shall produce a response to these proposed mitigation measures and the third-party expert’s opinion and recommendations, indicating whether it concurs or disagrees, and whether a given mitigation measure will be implemented, or is declined. Utilities should provide a justification for declining any proposed mitigation measures.

54 This original plan and the third-party review may collectively be called the Mitigation Plan.

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A utility’s risk-threat assessment, mitigation plan, consultant appraisal and statement, and utility response, would together comprise its Security Plan Report. The Security Plan should include an estimated timeframe for how long it will take to implement the Mitigation Plan and a cost estimate for incremental expenses associated with implementing the Mitigation Plan.

6.4. Third-Party Expert Qualifications
Each utility shall employ a qualified third-party expert to provide independent verification of any Distribution Security Program and Mitigation Plans, taking the following requirements into account:

Unaffiliated Third-Party Reviewer: The Unaffiliated
Third-Party Reviewer shall be an entity other than the
Operator with appropriate expertise, as described below. The selected third-party reviewer cannot be a corporate affiliate of the Operator (i.e., the third-party reviewer cannot be an entity that is controlled by the utility or controlled by or is under common control with, the Operator). A third-party reviewer also cannot be a division of the Operator that operates as a functional unit. A governmental entity can select as the third-party reviewer another governmental entity within the same political subdivision, so long as the entity has the appropriate expertise, and is not a division of the Operator that operates as a functional unit, i.e., a municipality could use its police department as its third-party reviewer if it has the appropriate expertise.

Unaffiliated Third Party Reviewer Appropriate Expertise:55 The Unaffiliated Third-Party Reviewer shall be an entity or organization with electric industry physical security experience and whose review staff has appropriate physical security expertise, i.e., have at least one member who holds either an ASIS International Certified Protection Professional (CPP)

55 Unaffiliated Third-Party Reviewer Appropriate Expertise can be established by any of these methods.

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or Physical Security Professional (PSP) certification; an entity or organization with demonstrated law enforcement, government, or military physical security expertise; or an entity or organization approved to do physical security assessments by the CPUC, Electric Reliability Organization or similar electrical industry regulatory body.

6.5. Access to Information
The Commission is currently engaged in an effort to update its policies regarding the protection of confidential information in a rulemaking related to Public Records Act requests.56 Additionally, a recent decision approved an update to General Order 66-D, which took effect in January 2018. The utilities in their Joint Proposal and in comments have advocated for the use of a Reading Room approach that would require that Commission staff visit IOU property to view physical security-related information that they consider to be highly confidential, or at a level of sensitivity which utilities believe Commission confidentiality rules and provisions are unequipped to address.

Commission staff, in the course of carrying out Phase I of this proceeding, report having tested the Reading Room approach with mixed results.

Commission staff report having visited utility offices to obtain data and view documentation previously denied by investor owed utilities in response to data requests. Commission staff’s complaint with the Reading Room approach is they were not allowed by the utilities to engage in notetaking or any other means of keeping records of documents made available in the Reading Room.

The Commission recognizes that the Reading Room approach by nature entails certain limitations on Commission staff’s ability to freely and

56 R.14-11-001, Order Instituting Rulemaking to Improve Public Access to Public Records Pursuant to the California Public Records Act.

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independently review and assess utility documents utility reports and submittals.

For these reasons, we have concerns about relying on the Reading Room approach as the sole means for accessing utility information necessary to gauge whether utilities are in compliance with this decision’s provisions for producing and furnishing the Commission with recurring regulatory compliance reports and ongoing updates.

Parties including SED Advocacy and ORA recommend making the Reading Room approach temporary, while the utilities recommend that it be designated permanent status.

We conclude that neither recommendation fully satisfies the need to conveniently access regular regulatory filings. At the same time, we are mindful of the concerns raised by the utilities regarding sensitive physical securityrelated information.

We therefore bifurcate utility physical security-related information into two categories for the purposes of Commission staff access and the transfer of data:
x Category 1 - information that is specifically required to reviewed by the Commission in this decision (“routine
regulatory compliance filings);” and
x Category 2 - other information which Commission staff may request of utilities from time to time (“ad hoc
information”).

Category 1 routine regulatory compliance filings will not be subject to the Reading Room approach and shall be provided to SED staff by means of transmittal to the Commission. Category 2 ad hoc information shall be subject to the Reading Room approach.

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The Commission adopts the Reading Room approach as an interim solution pending the ongoing R.14-11-001 rulemaking establishing new rules for the safekeeping, sharing, transmittal, and inspection of confidential information.

The Commission intends to monitor the effectiveness of the Reading Room approach, and review and revise the approach as needed.

The Reading Room approach shall entail utility information being made available to Commission staff on utility property at a location convenient and agreed to by CPUC staff.

It remains without question that the Commission and its staff require and are fully entitled to access to such information, as long as protections against public release are maintained. Especially in cases where the Commission is investigating an incident (whether it is already defined in our regulations or a new aspect, such as physical or cyber-attack), access to records shall be provided promptly upon the Commission request.

It should be noted that the Reading Room approach only relates to how the Commission may access confidential utility information relating to physical security, and that utilities still are required to first justify confidentiality claims relating to all information being made applicable to the Reading Room approach as per generally applicable Commission requirements.

Additionally, nothing in the present decision establishes a basis for utilities to restrict access to any information that is publicly accessible pursuant to Commission rulings, orders, or other actions. To the extent that utilities believe that restricting public access to any category of information that is publicly available is necessary for mitigating physical security risks to a Covered Distribution Facility, they should describe and justify any restrictions on Packet Pg. 541 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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information access they propose within their Mitigation Plans for any affected Covered Distribution Facilities.

6.6. Timeline for Implementation
Security Plans shall be completed in accordance with the following criteria:

1. Each utility’s Security Plan Report is due to the CPUC within 30 months of the approval of this decision; and

2. POUs only — Within 30 months of the approval of this decision, the POUs shall provide the Director of Safety and Enforcement Division and the Director of the Energy
Division with notice of the plan adoption by way of copy of a signed resolution, ordinance or letter by a responsible elected- or appointed official, or utility director. If a POU has an existing security plan that has been adopted by its Board of Directors or City Council within three years prior to the date of this decision, the requirement to have a plan adopted may be waived by the Commission.

6.7. Reporting
Utilities shall provide to the Director of the Safety and Enforcement Division and the Director of the Energy Division copies of all OE-417 reports submitted to the U.S. DOE within two weeks of filing with U.S. DOE.

All utilities except SDG&E objected to SED RASA’s recommendation of annual reporting, citing a preference for data requests as the appropriate vehicle.

We disagree that the responsibility to be made aware of any incidents should fall on the Commission. Additionally, such an annual reporting requirement is enshrined into law per § 590 of the Pub. Util. Code. Therefore, and in order to ensure statewide consistency, we require the utilities to submit an annual report.

These annual reports shall be submitted to the Director of the Safety and Enforcement Division and the Director of the Energy Division by March 31 each year, commencing in 2020. Each report shall include a section that describes any physical security incident resulting in a utility insurance claim. The Commission Packet Pg. 542 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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does not require copies of filed insurance claims or specifics of asset vulnerability that allowed for a physical security breach. Rather, the submittal should be a high-level report. Utilities should make mention of any incidents reported for insurance claims within the annual reporting period of April 1 to March 31 and include such general information as location, and impact of the incident, and monetary value of claim. Filing should include a data file (in Microsoft Excel format). As with all Commission filings, should utilities believe that certain information is sensitive, they must follow GO 66-D requirements for identifying confidential information.

To meet the reporting requirement introduced in SB 699 in Pub. Util. Code § 364 (b) now located in § 590, these annual reports should also include any significant changes to the Security Plan Reports (including new facilities covered by the Plan or major mitigation upgrades at previously identified facilities).

Because the statutory language provided that these be publicly available, the utility may provide both a complete report for the Commission and an appropriately redacted version for the public to be posted on the Commission’s web site.

6.8. Cost Recovery
The Joint Utilities propose that they should be authorized to file separate applications to request recovery of the costs associated with their Distribution Security Programs. We disagree that the electric utilities should be authorized to file separate applications to request recovery of costs associated with their respective Distribution Security Programs. Utilities may establish a memorandum account to track associated costs. However, cost recovery requests shall be made in each utility’s general rate case (GRC).

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Electrical Cooperatives and POUs should act in accordance with processes established by a governing or other type of board with the authority to approve such processes, if any.

7. Commission Position on Joint Utility Proposal
and SED RASA Recommendations
The Commission finds that the elements of the Joint Utility Proposal set forth in the mitigation plans represent a first-of-its kind effort at the state level, and yet they do not go far enough to prescribe reasonable physical security measures. Additionally, the Commission finds that the SED RASA recommendation to include additional requirements is sound and advisable. We find that the Joint Utility Proposal, augmented by all of the above additional measures and clarifications as recommended by SED RASA57 strike the right balance between achieving grid protection and keeping electricity service affordable. As such, the Commission finds adoption of the combined provisions of Sections 4 and 6 outlined above, will provide an appropriate level of physical security and ensure California grid resilience should another Metcalf-type sabotage event target the state’s electric utilities’ distribution infrastructure.58

57 SED RASA recommendations for additional measures consist of the following:

6.0 Guiding Principles of California Electric Physical Security

6.1Six-Step Procedure to Address Utilities’ Distribution Assets

6.2.1 Additional Optional Requirements for Mitigation Plans

6.2 Additional Requirements for Mitigation Plans

6.3 Third-Party Verification

6.4 Third-Party Expert Qualifications

6.5 Access to Information

6.6 Timeline for Implementation

6.7 Reporting

6.8 Cost Recovery
58 Should there be any question of which shall predominate should there be any incongruity or conflict between a utility or SED RASA recommended rule, the SED RASA rule shall apply.

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In closing, the Commission notes that it is desirable that California’s electric utilities coordinate to the fullest extent practicable to exchange information and best practices that advance the State’s safety, security, and resilience goals. To this end, all utilities will be expected to relay information about critical loads within a service territory to any other utility in California whose distribution facilities also are used to supply electricity for those critical loads.

8. Safety Considerations
Safety is a major concern for the Commission. The Commission’s safety goals are furthered by ensuring all California electric utilities have identified priority distribution assets that merit special protection, and prescribing measures to reduce risks and threats to these assets.

9. Conclusion
Phase I of this proceeding requires electric utilities to identify electric supply facilities which may require special protection and measures to identify risks and threats. Each Operator will develop and implement a six-step Mitigation Plan modeled on the security plan requirements set forth by NERC CIP-014. The safety and security benefits promoted by these Mitigation Plans mandate that the POUs also comply with these requirements as set forth in this decision.

10. Comment Period
The proposed decision in this matter was mailed in accordance with § 311 of the Pub. Util. Code and comments were allowed under Rule 14.3 of the Commission’s Rules of Practice and Procedure. Comments were filed on November 29, 2018, by PG&E, SCE, SDG&E, CMUA/LADWP/SMUD and SED Advocacy, and reply comments were filed on December 4, 2018 by PG&E, SCE, Packet Pg. 545 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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SDG&E, CMUA/LADWP/SMUD, SED Advocacy and ORA, filing as the Public Advocates Office.

In their comments the utilities sought greater conformity with the original Joint Utility Proposal, particularly in the proposed timeline for compliance, and argued against the requirements in the Plans regarding asset management, workforce training, and preventative maintenance planning going beyond federal CIP-014 requirements, recommended by SED RASA. SED Advocacy sought to make mandatory certain optional aspects of the RASA recommended changes to the Joint Utility Proposal. SCE sought to eliminate certain requirements for submitting confidential information in their plans to the CPUC for staff validation and to make the Reading Room approach to access to sensitive data a permanent feature. POUs expressed concerns about sharing information about critical loads among adjacent utilities, and sought clarification of definitions of physical security incidents reported in the federal OE-417 reports.

The Commission finds it reasonable to adopt the compliance timelines initially expressed in the Joint Utility Proposal and has clarified some of the requirements for providing the Commission with plans and reports in the body of this decision. Additionally, the proposed decision that was initially mailed for comment included an Appendix. Upon further review, we have decided to remove the Appendix from the final decision. Other proposed changes are not adopted.

11. Assignment of Proceeding
Clifford Rechtschaffen is the assigned Commissioner and Gerald F. Kelly is the assigned Administrative Law Judge to the proceeding.

Findings of Fact
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1. SB 699 directs the Commission to develop rules for addressing physical security risks to the distribution systems of electrical corporations.

2. AB 1650 directs the Commission to develop emergency preparedness plans applicable to electrical corporations and water companies regulated by the Commission.

3. This proceeding will be conducted in two phases.

4. Phase I of this proceeding pertains to the requirements set forth in SB 699.

5. Phase II of this proceeding pertains to the requirements set forth in AB 1650.

6. Ensuring the physical security of all electrical supply systems is of great importance to the Commission.

7. Ensuring the physical security of all electrical supply systems within the state will help maintain high quality, safe and reliable service.

8. Four Phase I physical security workshops were conducted by SED RASA from May to September 2017.

9. During these workshops, a technical working group was formed by the utilities.

10. As a result of technical working group discussions, the utilities submitted a Joint Utility Proposal.

11. The Joint Utility Proposal offered guidance for compliance with SB 699, and represented a first-of-its-kind effort to establish new critical asset protections at the distribution level.

12. The Joint Utility Proposal (at 4.1.6 and 4.3.3 above) provided assurance that IOUs and POUs would partner with law enforcement agencies broadly to plan, coordinate, and share information to ensure safety, resilience, and security.

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13. The Commission expects that all California utilities will communicate, coordinate, and share best practices with law enforcement and each other, as appropriate to advance, local, State, and Federal safety and security goals.

14. SED RASA evaluated the Joint Utility Proposal and identified areas where the proposed security plans could be improved.

15. Review of the Distribution Security Plans (Security Plans and its components are the process of drafting the Mitigation Plan) and Mitigation Plans (Mitigation Plans are the plans that are ultimately adopted) by independent third parties will help to strengthen these plans.

16. Ensuring that confidential security information is not released to the public is of great importance to the Commission.

17. The Commission is currently engaged in an effort to update its policies regarding the protection of confidential information in a rulemaking related to Public Record Acts Requests in R.14-11-001.

18. D.17-09-023, which became effective on January 1, 2018, updated GO 66 D as it relates to submission of confidential information to the Commission.

19. The Commission and its staff are fully entitled to access confidential information, as long as protections against public release are maintained.

20. The Commission recognizes that the Reading Room approach advanced in the Joint Utility Proposal is imperfect, with SED staff reporting inconsistency statewide, and issues and concerns with its ease, practicality, usefulness, and timeliness in their experience with testing it in the course of carrying out this proceeding.

21. The Commission recognizes that the Reading Room approach by nature entails certain limitations on Commission staff’s ability to review IOU documents, which may not afford notetaking or records retention all and any of Packet Pg. 548 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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which may render arduous and impractical its usage for the purposes of reviewing recurring and routine required submittals described within this decision.

22. The Commission therefore determines that it is not desirable to apply the Reading Room approach to recurring and routine required IOU submittals and updates described within this decision (i.e., Physical Security Plan Reports and Drafts, Mitigation Measures and Consultant-prepared documents, Annual Reporting, and OE-417 Reports).

23. The Commission adopts the Reading Room approach as an interim solution to the handling and sharing of other physical security data requested by Commission staff on an ad hoc basis, allowing Commission staff to review documents at a utility property location convenient to and agreed to by CPUC staff such as the utility’s San Francisco office address.

24. The Reading Room approach shall be superseded by outcomes in the ongoing R.14-11-001 rulemaking.

25. It is important to maintain uniformity at a statewide level as it relates to ensuring the physical security of the electrical distribution system.

26. It is reasonable that Step 2 of the Six-step Plan Process require that an independent third-party review a utility’s physical security plan to assess and appraise the sufficiency of the risk assessment, proposed mitigation measures, and other plan elements and make recommendations regarding the plan elements.

27. It is reasonable that Step 3a of the Six-step Plan Process require that the POUs provide the Commission with notice of successful completion of their Security Plan review and adoption.

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28. It is reasonable that all California electric utilities be required, within any new or renovated distribution substation, to design their facilities to incorporate reasonable security features.

29. It is reasonable that all California electric utilities be required to include within their security plans a detailed narrative explaining how the utility is taking steps to implement:
a) An asset management program to promote optimization
and quality assurance for tracking and locating spare
parts stock, ensuring availability and the rapid dispatch of available spare parts;
b) A robust workforce training and retention program to employ a full roster of highly-qualified service
technicians able to respond to make repairs in short order throughout a utility’s service territory using spare parts stockpiles and inventory;
c) A preventative maintenance plan for security equipment to ensure that mitigation measures are functional and
performing adequately; and,
d) A description of Distribution Control Center and Security Control Center roles and actions related to distribution system physical security (this item (d) would be required for IOUs only).

30. It is reasonable to expect California’s electric utilities to coordinate with one another to the fullest extent practicable, and to relay information about critical loads within a service territory to any other utility in the state whose distribution facilities also are used to supply electricity for those critical loads.

Conclusions of Law

1. SB 699 confers on the Commission authority to develop rules for addressing the physical security risks to the distribution systems of electric corporations.

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2. AB 1650 confers on the Commission authority to develop rules for emergency preparedness plans applicable to electrical corporations and water companies regulated by the Commission.

3. This decision fulfills the mandates of SB 699.

4. The decision in Phase II of this proceeding will fulfill the mandates of AB 1650.

5. Pursuant to §§ 8001 to 8057 of the Pub. Util. Code, the Commission has the authority and duty to regulate and enforce safety aspects of POUs.

6. Sections 8001-8057 of the Pub. Util. Code provide that the Commission has jurisdiction over the public safety aspects of POUs.

7. The need to ensure the safety and security of the electrical distribution system mandates that Phase I of this proceeding be applied to both IOUs and POUs.

8. This decision should be effective today.

ORDER
IT IS ORDERED that:

1. Within 18 months of this decision being adopted, Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison, PacifiCorp, Bear Valley Electric Service, and Liberty CalPeco shall prepare and submit to the Commission a preliminary assessment of priority facilities for their distribution assets and control centers.

2. Within 30 months of this decision being adopted, Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison, PacifiCorp, Bear Valley Electric Service, and Liberty CalPeco shall submit each utility’s Final Security Plan Report.

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3. Within 30 months of this decision being adopted, the Publicly Owned Utilities shall provide the Commission with notice of final plan adoption.

4. The Publicly Owned Utilities’ notice of final plan adoption may consist of a copy of a signed resolution, ordinance or letter by a responsible elected- or appointed official, or utility director.

5. All California Electric Utility Distribution Asset Physical Security Plans shall conform to the requirements outlined within the Joint Utility Proposal, as modified by this decision (rules and requirements collectively known as “security plan requirements”).

6. The Investor Owned Utilities and Publicly Owned Utilities shall adhere to the Safety and Enforcement Division’s Six-step Security Plan Process.

7. The Six-step Plan Process consists of the following: Assessment; Independent Review and Utility Response to Recommendations; Safety and Enforcement Division Review (for Investor Owned Utilities s); Local Plan Review (for Publicly Owned Utilities); Maintenance and Plan overhaul/new review.

8. Subsequent changes to the security plan requirements deemed beneficial and necessary, shall be enabled by one of the following: 1) Commission Resolution or Decision; 2) Ministerially, by Safety and Enforcement Division (or successor entity) director letter.

9. In carrying out any future changes to the security plan requirements, Safety and Enforcement Division shall confer with utilities about any recommended modifications to the plan requirements.

10. Prior to the submittal of the Security Plan, Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison, PacifiCorp, Bear Valley Electric Service, and Liberty CalPeco shall each have their respective plan reviewed by an unaffiliated third-party entity.

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11. The unaffiliated third-party reviewer shall have demonstrated appropriate physical security expertise.

12. California electric utilities shall, within any new or renovated distribution substation, design their facilities to incorporate reasonable security features.

13. Utility security plans shall include a detailed narrative explaining how the utility is taking steps to implement an asset management program to promote optimization, and quality assurance for tracking and locating spare parts stock, ensuring availability, and the rapid dispatch of available spare parts.

14. Utility security plans shall include a detailed narrative explaining how the utility is taking steps to implement a robust workforce training and retention program to employ a full roster of highly-qualified service technicians able to respond to make repairs in short order throughout a utility’s service territory using spare parts stockpiles and inventory.

15. Utility security plans shall include a detailed narrative explaining how the utility is taking steps to implement a preventative maintenance plan for security equipment to ensure that mitigation measures are functional and performing adequately.

16. Utility security plans shall include a detailed narrative explaining how the utility is taking steps to implement a description of Distribution Control Center and Security Control Center roles and actions related to distribution system physical security.

17. Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison, PacifiCorp, Bear Valley Electric Service, and Liberty CalPeco shall each document all third-party reviewer recommendations, and specify recommendations that were accepted or declined by the utility.

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18. Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison, PacifiCorp, Bear Valley Electric Service, and Liberty CalPeco shall each provide justification supporting its decision to accept or decline any third-party recommendations.

19. Physical Security-related information is bifurcated into two categories.

Recurring and routine utility compliance work products and ongoing utility updates required by this decision are not subject to the Reading Room approach but shall be transmitted to the Commission. All other physical security data requested by Commission staff on an ad hoc basis shall be made available to the Commission on utility property in a manner agreed to by the Safety and Enforcement Division, or its successor, until such time that the Commission finalizes its rules for the handling, sharing, and inspection of confidential information.

20. If a Publicly Owned Utility has an existing blanket Security Plan that has been adopted by its Board of Directors or City Council within three years prior to the date of this decision, the requirement to have a plan adopted may be waived by the Commission.

21. In the event that a Publicly Owned Utility’s (POU) Security Plan has not been adopted in time as required by this decision, the POU shall provide the Director of the Commission’s Safety and Enforcement Division with a notice [30] days prior to the deadline with information on the nature of the delay and an estimated date for adoption.

22. Prior to Security Plan adoption, Publicly Owned Utilities in California shall have their plan reviewed by a third party.

23. Such third-party reviewer may be another governmental entity within the same political subdivision, so long as the entity can demonstrate appropriate Packet Pg. 554 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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expertise, and is not a division of the publicly owned utility that operates as a functional unit (i.e., a municipality could use its police department if it has the appropriate expertise).

24. Publicly Owned Utilities shall conduct a program review of their Security Plan and associated physical security program every five years after initial approval of the Security Plan by their Board of Directors or City Council. Notice of such approval action shall be provided to the Commission’s Safety and Enforcement Division within 30 days of Plan adoption by way of copy of signed resolution or letter by a responsible elected- or appointed official, or utility director.

25. Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison, PacifiCorp, Bear Valley Electric Service, and Liberty CalPeco shall conduct a program review of their Security Plan and associated physical security program every five years after Commission review of the first iteration of the Security Plan.

26. A summary of the program review shall be submitted to the Safety and Enforcement Division within 30 days of review completion.

27. In the event of a major physical security event that impacts public safety or results in major sustained outages, all utilities shall preserve records and evidence associated with such event and shall provide the Commission full unfettered access to information associated with its physical security program and the circumstances surrounding such event.

28. An Exemption Request Process shall be available to utilities whose compliance would be clearly inappropriate or inapplicable or whose participation would result in an undue burden and hardship.

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29. Utilities shall provide to the Director of the Safety and Enforcement Division and Energy Division copies of OE-417 reports submitted to the United States Department of Energy (U.S. DOE) within two weeks of filing with U.S. DOE.

30. Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison, PacifiCorp, Bear Valley Electric Service, and Liberty CalPeco (collectively, IOUs) shall seek recovery of costs associated with their respective Distribution Security Programs in each IOU’s general rate case.

31. The utilities shall submit an annual report by March 31 each year beginning 2020, reporting physical incidents that result in any utility insurance claims, providing information on incident, location, impact on infrastructure and amount of claim. The insurance claim disclosure reporting, as described in this decision, should be included within a utility’s broader annual Physical Security Report to the Commission due every March 31, beginning in 2020.

32. As appropriate, the requirements set forth in Phase I of this proceeding shall apply to Alameda Municipal Power, City of Anaheim Public Utilities Department, Azusa Light and Water, City of Banning Electric Department, Biggs Municipal Utilities, Burbank Water and Power, Cerritos Electric Utility, City and County of San Francisco, City of Industry, Colton Public Utilities, City of Corona, Eastside Power Authority, Glendale Water and Power, Gridley Electric Utility, City of Healdsburg Electric Department, Imperial Irrigation District, Kirkwood Meadows Public Utility District, Lathrop Irrigation District, Lassen Municipal Utility District, Lodi Electric Utility, City of Lompoc, Los Angeles Department of Water & Power, Merced Irrigation District, Modesto Irrigation District, Moreno Valley Electric Utility, City of Needles, City of Palo Alto, Pasadena Water and Power, City of Pittsburg, Port of Oakland, Port of Stockton, Power and Water Packet Pg. 556 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) R.15-06-009 COM/CR6/avs
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Resources Pooling Authority, Rancho Cucamonga Municipal Utility, Redding Electric Utility, City of Riverside, Roseville Electric, Sacramento Municipal Utility District, City of Shasta Lake, Shelter Cove Resort Improvement District, Silicon Valley Power, Trinity Public Utility District, Truckee Donner Public Utilities District, Turlock Irrigation District, City of Ukiah, City of Vernon, Victorville Municipal Utilities Services, Anza Electric Cooperative, Plumas-Sierra Rural Electric Cooperative, Surprise Valley Electrification Corporation, and Valley Electric Association.

33. This proceeding shall remain open so that the Commission may address the issues presented in Phase II of this proceeding.

This order is effective today.

Dated January 10, 2019, at San Francisco, California.

MICHAEL PICKER
President
LIANE M. RANDOLPH

MARTHA GUZMAN ACEVES

CLIFFORD RECHTSCHAFFEN
Commissioners
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APPENDIX B

THIRD-PARTY

EVALUATION OF

PHYSICAL SECURITY

MITIGATION PLAN
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INTERNAL

COMMUNICATION
DATE: March 25, 2021

TO: Dan Beans, Director of REU
FROM: Levi Solada, Redding Police Lieutenant
SUBJECT: REU SB 699 Utility Security Plan Independent Review On February 11, 2021, I met with REU Program Supervisor Shawn Avery and was provided with REU’s Utility Security Plan to conduct a third-party independent review. This independent review is required under California State Senate Bill (SB) 699. I have reviewed the Utility Security Plan in its entirety, conducted multiple physical inspections of several of the substations identified in the Plan, and will offer my recommendations.

I have been employed as a law enforcement officer with the City of Redding Police Department for the past 18 years and am currently a Lieutenant in charge of the Investigations Division. My background includes work in all areas of policing, to include Patrol, Investigations, and SWAT. I am currently the SWAT Team Tactical Commander and have been a member of the SWAT team for the last 16 years. I have completed hundreds of training hours devoted specifically to tactical training. Throughout my career, I have conducted numerous security and safety site survey assessments on government and private facilities as well as reviewed security plans for organizations throughout the City of Redding. These locations have included the Shasta County Courthouse, City of Redding City Hall, private businesses, hospitals, specialized facilities, and residences. While conducting site survey assessments, several factors are taken into consideration that include: overall security measures in place, ingress and egress routes, general construction, hazardous materials, internal/external security risks, crime prevention measures, target hardening, situational awareness and future plans to improve security at these locations.

The City of Redding Utility Security Plan is a comprehensive plan which has been implemented and has taken numerous steps to protect the infrastructure of the City’s electric utility, specifically related to the substations noted below. The Plan clearly identifies the goals of ensuring the safety of its facilities as the top priority for REU. There are multiple REU facilities throughout the City to include a Power Control Center, a Department Operations Center, and twelve (12) distribution substations. Below is a list of REU's substations. Although the security requirements of SB 699 are specific to “Critical Distribution Facilities” I noted in REU’s Security Plan the intent is to ensure all substations are treated the same as related to security. Below is a complete list of REU’s substations.

Substation Facilities
Airport 115kV Substation
Beltline Substation
Canby Substation
College View Substation
Packet Pg. 560 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) East Redding Substation
Eureka Way Substation
Moore Road Substation
Oregon Street Substation
Redding Power Substation
Sulphur Creek Substation
Texas Springs Substation
Waldon Substation
The Utility Security Plan has identified capital improvements which will enhance the existing security measures I have outlined and will improve the resilience of all REU substations. The first improvement is to have additional fixed high definition cameras, including Automatic License Plate Readers (ALPR). The ALPR technology allows law enforcement to have access to a database of information which is a tool for law enforcement to help identify any threats near REU facilities.

This is a collaborative database of information gathered from multiple ALPR systems throughout the state and is being used by multiple law enforcement agencies. The Redding Police Department could be notified of any potential identified threat, via an ALRP, if installed on the ingress or egress routes related to REU substation facilities.

Although Redding Police Department’s response time for crimes in progress or past tense property crimes is significantly faster than the national average, the addition of technology will assist law enforcement when responding to an incident related to one of REU’s substations. This technology would greatly assist with an investigation if any REU facility was ever a target of terrorism, Packet Pg. 561 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) vandalism, theft, or any other associated property crime. Additional high definition cameras installed at various REU substations would not only assist with crime prevention measures, but would also aid in identifying other threats, including wildfires encroaching on REU facilities.

In my review of the Utility Security Plan as it relates to the REU substations, I would recommend implementing the improvements outlined in the Plan, which are needed to enhance overall security of the substations.

If all of these security improvements are implemented, the overall safety of the City’s utilities will be enhanced.

To complete my review of REU’s Utility Security Plan, I feel it is a detailed and comprehensive plan. The written Plan is comprised of several areas including:
x Overview
x Background
x Plan Development Process
x Identification of Facilities
x Risk Assessment
x Mitigation Planning
x Evaluation and Response
x Validation
x Narrative Descriptions for the Plan
x Appendices
In my opinion, REU’s written Utility Security Plan has adequately provided specific details, making this an effective security plan for the City’s utilities. This Plan provides safety measures needed for the critical infrastructure identified through SB 699 and for the citizens of Redding. In addition, REU has clearly identified areas to improve its security and mitigate risk as noted in the REU Wildfire Mitigation Plan.

Packet Pg. 562 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems)

APPENDIX C
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Packet Pg. 564 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) DATE: May 17, 2021
TO: Dan Beans, Director of Redding Electric Utility (REU) FROM: Jay Sumerlin, City of Redding Deputy Fire Chief
SUBJECT: REU SB 699 Utility Security Plan Validation as required by the California Public Utilities Commission (CPUC)

On May 13th, 2021, I received a copy of the REU Utility Security Plan, including an independent security review performed by Lt. Levi Solada from the Redding Police Department. In addition, I made a site visit to a substation facility with REU Program Supervisor, Shawn Avery and found that the substation security complies with the written security plan. The REU substation security measures, as documented in the Plan, are both thorough and appropriate to mitigate criminal activity on or near the distribution facilities.

My knowledge and experience related to emergency operations as well as criminal activity provide me with the appropriate training to validate REU’s Utility Security Plan. I have been employed with the Redding Fire Department as the Deputy Fire Chief for nearly two years. Before my current position, I served another fire agency in Washington State for over twenty-seven years. I have many hours of training in Emergency Planning, Emergency Response to Terrorism, and I am a liaison to the Fusion Center. In addition, I held the Local Emergency Planning Committee Chair and have been part of an FBI Joint Terrorism workgroup in Washington State.

The REU Security plan is well written and comprehensive. In addition, the recommendations for capital improvements outlined in the plan and that of the independent evaluator will enhance site security, adding additional elements of threat detection that will aid law enforcement in protecting the power grid. Therefore, in my review of the REU Utility Security Plan and the independent review conducted by the Redding Police Department, I have determined that the plan and independent review are valid under the guidelines required by the CPUC decision for Publicly Owned Utilities.

INTERNAL

COMMUNICATION
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APPE DI D

SUBSTATIO MAP
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APPE DI E

REU WMP

TEC OLO

SOLUTIO S

PRO RAM
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Packet Pg. 572 Attachment: REU's Utility Security Plan (4.5(c)--Make a Finding to Sole-Source AMAG Technologies Physical Access Control Systems) REU Wildfire Mitigation Plan Rev December 3, 2019
Overview
Through the application of technology, REU will be able to more effectively protect and reduce threats to the electric utility infrastructure and the customers who rely upon it. The following technologies will greatly enhance REU’s ability to minimize sources of ignition, manage vegetation within the City’s electric grid, enhance productivity of utility staff, harden systems, more effectively protect and notify the public if an issue arises, as well as shorten the response and recovery time in the event REU equipment contributes to starting a wildfire.

Technology also helps to heighten situational awareness and enhances public safety response time, allowing first responders to react in an appropriate and effective manner before, during and after a wildfire. The Program provides funding to the Redding Police Department (RPD) and the City Information Technology (IT) Department for services rendered to help prevent REU caused wildfires and protect REU facilities from the threat of wildfires through aerial surveys of REU’s overhead electric lines, video monitoring of facilities, a common communication platform, and a GPS based vehicle tracking platform. The memorandums of understanding (MOUs) are attached.

Specifically, this program provides for an estimated total of forty (40) cameras; a common radio platform, including base stations, handhelds and vehicle mounted radios for REU personnel as well as radio equipment for Redding Police and Fire command Staff; and Automatic Vehicle Location (AVL) tracking devices on all Electric Utility vehicles and necessary upgrades for first responder vehicles. The common communication and GPS vehicle tracking platforms will be expandable and be designed to allow easy adoption by other City Departments at a small incremental cost.

Cameras for Utility Operations, Fire Detection and Mitigation Situational awareness is instrumental in combating fires in and around our community. Camera technology is a vital element in the early detection and intrusion of wildland fires into the City of Redding. In addition, cameras provide critical information related to any REU equipment that may be a contributory cause to a fire. The installation of cameras in areas surrounding REU’s critical infrastructure will greatly enhance first responder’s ability to identify, locate, and mitigate fire threats.

Live feed cameras mounted throughout REU’s service territory will assist with the early detection of fires caused by the electric system. Strategically placed cameras in the proximity of REU’s transmission lines, especially in the Tier 2 and Tier 3 fire areas, will also aid in risk assessments during designated Red Flag warning days or a fire weather event in which an Emergency Operations Center is activated. Early assessment and detection allows REU to quickly react and prevent the system from inflicting harm on the surrounding areas.

Mobile cameras will also be used in a variety of preventative ways through the use of Unmanned Aerial Vehicles (UAVs). This includes the identification of potential right-of-way hazards as well as the location and isolation of hot spots in REU distribution lines using Forward Looking Infrared Radar (FLIR) technologies.

APPENDIX E

REU TECHNOLOGY

SOLUTIONS PROGRAM