Agenda Packet — Redding City Council, October 7, 2025 (part 1 of 5)

Agenda
Regular Meeting
Redding City Council
Council Chambers (Doors open 30 minutes prior)
777 Cypress Avenue,
Redding, CA
October 7, 2025
6:00 PM

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

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

PURSUANT TO THE BROWN ACT, CITY COUNCIL CANNOT TAKE ACTION ON PUBLIC

COMMENT ITEMS
The City Council will allocate up to a maximum of three minutes per speaker for 30 minutes total, at the beginning of the meeting for Public Comment for non-agendized matters within the City’s jurisdiction.

The Mayor will determine the order of the speakers. If 30 minutes is not adequate to accommodate all of the individuals who have submitted 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 October 7, 2025

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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. 4(a). Approve City Council Minutes: Special Meeting – Closed Session of September 2, 2025; Regular Meeting of September 2, 2025; Special Meeting – Closed Session of September 16, 2025; and Regular Meeting of September 16, 2025.

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 and authorize the following actions regarding the sale of real property located at 6155 Venture Parkway, Stillwater Business Park Lot 12 (Assessor’s Parcel No. 054-260-004) to Technisoil Industrial Inc.:
(1) Approve the First Amendment and Reinstatement to the Real Estate Purchase and Sale Agreement (C-10825) for approximately 25.41 acres of City of Redding (City)-owned property, thereby extending the due diligence period and closing escrow by January 9, 2026; (2) Authorize the Mayor to execute all related documents needed to complete the transaction; and
(3) Find the sale of the City-owned property is categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (surplus Government Property Sales).

4.1(c). Authorize and approve the following actions with the Tribal Council of the Redding Rancheria:
(1) Authorize the Mayor to sign the Master Service Agreement with the Tribal Council of the Redding Rancheria;
(2) Authorize the Mayor to sign the Distribution Utility Services Agreement (DUSA) with the Redding Rancheria Utility Corporation (RRUCO); and (3) Make a determination this action is exempt from review under the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3)- Common Sense Exemption.

Redding City Council October 7, 2025

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4.2(a). Authorize and approve the following actions:
(1) Adopt Resolution approving the 12th Amendment to City Budget Resolution No. 2025-049 re-appropriating the state grant funds in the amount of $0;
(2) Find that appropriating grant funding is not considered a project under the California Environmental Quality Act. Each project has been individually evaluated for CEQA compliance; and
(3) Find that appropriating grant funding is exempt under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3) and each of the projects has been reviewed and is exempt from further federal environmental review requirements.

4.9(a). Authorize the City Manager, or designee, to execute the First Amendment (C10028) to the contract with Emergency Vehicle Outfitting Company in an amount not-to-exceed $200,000, annually, for two years for outfitting vehicles with the needed equipment.

4.11(a). Authorize and approve the following actions:
(1) Adopt Resolution terminating the South Street Water Main at Railroad Emergency Replacement Project; and
(2) Pursuant to Public Contract Code Section 22050(c)(1), make a determination by a four-fifths vote that the emergency conditions necessitating waiver of competitive bidding in order to procure immediate repair of the water system has concluded.

4.11(b). Authorize and approve the following actions related to the purchase of one 2026 Caterpillar 910 Loader for the City of Redding Solid Waste Utility:
(1) Authorize the purchase using Sourcewell contract pricing, with a net delivered cost of $247,254.83 including all applicable taxes and fees; and (2) Authorize the City Manager, or designee, to approve future pricing adjustments, terms, and policy changes as needed due to inflation and unstable economic conditions up to a total of $30,000.

4.11(c). Authorize and approve the following actions relative to the Magnums Area Remote Sewer Project:
(1) Adopt the Mitigated Negative Declaration, and the Mitigation Monitoring and Environmental Commitment Program; and
(2) Approve the Magnums Area Remote Sewer Project as described, thereby satisfying the requirements of the California Environmental Quality Act Guidelines §15074.

Redding City Council October 7, 2025

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4.11(d). Authorize and approve the following actions relative to Bid Schedule No. 5497, Cypress Pump Station Facility:
(1) Award to RTA Construction, Inc. in the amount of $3,713,625; (2) Approve an additional $489,850 to cover the cost of administration and inspection fees;
(3) Approve $910,000 for project development costs;
(4) Approve $371,000 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 15301 - Existing Facilities, Section 15302 - Replacement or Reconstruction, and Section 15303 - New Construction or Conversion of Small Structures.

4.11(e). Authorize and approve the following actions relative to the Girvan Road Over Olney Creek Bridge Replacement Project:
(1) Adopt the Mitigated Negative Declaration, the Mitigation Monitoring and Environmental Commitment Program; and
(2) Approve the Girvan Road Over Olney Creek Bridge Replacement Project as described, thereby satisfying the requirements of the California Environmental Quality Act Guidelines §15074.

4.11(f). Authorize and approve the following actions relative to Bid Negotiation No. 5551 Cascade Racquet Club Mutual Water Company Water Main Project:
(1) Award to Zeis Construction in the amount of $419,177; (2) Approve an additional $193,000 to cover the cost of administration and inspection fees;
(3) Approve $35,000 for project development costs;
(4) Approve $50,000 for construction contingency funding; (5) Authorize the Interim City Manager to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000;
(6) Accept California State Water Resources Control Board grant funds of $1,067,509 for the project; and
(7) Find that the Project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities and Section 15303 New Construction or Conversion of Small Structures.

4.11(g). Authorize and approve an increase in the amount of $150,000 to the Redding Regional Airport Passenger Terminal Parking Lot Reconstruction Project, Bid Schedule No. 5614 (Job No. 9944), to complete unforeseen issues identified during construction bringing the construction contingency cost total to $318,000.

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

Redding City Council October 7, 2025

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9. REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES
City Manager

9.1(d). Consider Resolution approving the transfer of funds into the City of Redding General Fund.

Recommendation:

Adopt Resolution approving and adopting the 13th Amendment to City Budget Resolution No. 2025-049 appropriating $550,000 to Stillwater Business Park infrastructure and transferring $2,890,000 of property proceeds from General Capital Projects Fund to the General Fund.

9.2(b). Oral report from the Airports Manager providing a City of Redding Airports Division update.

Recommendation:

Informational item only.

9.2(c). Consider agreement with World Triathlon Corporation to host triathlon events.

Recommendation:

Authorize and approve the following:
(1) Authorize the City Manager to negotiate a Host Venue Agreement (Agreement) with World Triathlon Corporation to hold an event in the City of Redding in August 2026, August 2027, and August 2028;
(2) Accept the Letter of Commitment of Financial Support for the duration of the Agreement from Choose Redding;
(3) Authorize the City Manager to negotiate a Partnership Agreement with Choose Redding and upon City Attorney approval, execute the Partnership Agreement; and
(4) Conditioned upon City Attorney approval, authorize the Mayor to execute the Host Venue Agreement.

Redding City Council October 7, 2025

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JOINT MEETING WITH THE REDDING JOINT POWERS FINANCING
AUTHORITY (RJPFA) REGARDING ITEM 9.5(a).

Electric Utility

9.5(a). Consider extension of Redding Electric Utility's Revolving Credit Agreement with US Bank.

Recommendation:

Approve the Amended and Restated Credit Agreement (C-8717), Exhibit F – Notice of Extension, between U.S. Bank National Association, the City of Redding, and the Redding Joint Powers Financing Authority, on behalf of Redding Electric Utility to:
(1) Extend the revolving credit agreement through October 29, 2028, at an estimated annual cost of $75,000; and
(2) Authorize the City Manager, City Attorney, and Director of Finance/City Treasurer, or their designees, to execute all necessary documents and take any actions related to the extension.

ADJOURN RJPFA MEETING
Community Services

9.6(a). Consider terminating financial assistance (C-10981) and lease amendment (C5682) for Advance Redding's operations of the Civic Auditorium located at 700 Auditorium Drive.

Recommendation:

Accept the report; and provide direction to staff.

Public Works

9.11(h). Consider Groundwater Transfer and Facilities Cost-Sharing Agreement and Emergency Intertie Agreement with Bella Vista Water District.

Recommendation:

Authorize and approve the following:
(1) Approve the Groundwater Transfer and Facilities Cost-Sharing Agreement and the Emergency Intertie Agreement with Bella Vista Water District for future water transfers;
(2) Authorize the Mayor to execute the Groundwater Transfer Agreement and Emergency Intertie Agreement; and
(3) Find that the action is exempt from review under the California Environmental Quality Act, pursuant to Section 15061(b)(3) – Common Sense Exemption.

Personnel

9.15(a). Consider Resolution approving the successor Memorandum of Understanding with the Redding Police Officers Association - Miscellaneous Unit.

Recommendation:

Adopt Resolution approving the successor Memorandum of Understanding (MOU) with the Redding Police Officers Association – Miscellaneous Unit for a one-year term effective October 8, 2025, through July 31, 2026, one year from expiration of the current MOU.

Redding City Council October 7, 2025

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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 https://www.cityofredding.gov/. Open the Services tab, and select City Council Videos.

In compliance with Title II of the Americans with Disabilities Act, the City of Redding will make available to persons with disabilities modifications or accommodations 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 – Closed Session of September 2, 2025; Regular Meeting of September 2, 2025; Special Meeting – Closed Session of September 16, 2025; and Regular Meeting of September 16, 2025.

Attachments
^Unofficial Minutes - Special Meeting - Closed Session of September 2, 2025 ^Unofficial Minutes - Regular Meeting of September 2, 2025 ^Unofficial Minutes - Special Meeting - Closed Session of September 16, 2025 ^Unofficial Minutes - Regular Meeting of September 16, 2025 MEETING DATE: October 7, 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
99 09/02/2025
Unofficial Minutes Redding City Council, Special Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
September 2, 2025, 5:00 PM
The meeting was called to order by Mayor Jack Munns with the following Council Members present: Dr. Paul Dhanuka, Mike Littau, and Erin Resner. Council Member Audette participated telephonically.

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.

CLOSED SESSION
At the hour of 5:02 p.m., Mayor Munns opened the Special Meeting and announced that the Council would adjourn to Closed Session.

At the hour of 6:03 p.m., Mayor Munns reconvened the Special Meeting to Open Session and reported that in reference to:
3A. Closed Session pursuant to California Government Code Section 54957.6:

CONFERENCE WITH LABOR NEGOTIATOR
Designated Agency Representative: Personnel Director Kibler Employee Organization: Redding Peace Officers’ Association – Miscellaneous Employees Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.
3B. Closed Session pursuant to California Government Code Section 54957.6:

CONFERENCE WITH LABOR NEGOTIATOR
Designated Agency Representative: Personnel Director Kibler Employee Organizations:
(1) Local 1934 International Association of Fire Fighters (2) United Public Employees of California - Redding Fire Management Unit Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.
3C. Closed Session pursuant to California Government Code Section 54957(b):

PUBLIC EMPLOYEE RECRUITMENT - CITY MANAGER
City Attorney Curtis reported that a consensus of the Council voted to appoint Assistant City Manager Steve Bade as Interim City Manager, effective October 4, 2025.

The Vote Taken by Roll Call:

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

ADJOURNMENT
There being no further business at the hour of 6:05 p.m., Mayor Munns declared the meeting adjourned.

APPROVED:
______________________________
Jack Munns, Mayor
ATTEST:
____________________________
Sharlene Tipton, City Clerk
Packet Pg. 9
Attachment: ^Unofficial Minutes - Special Meeting - Closed Session of September 2, 2025 (4(a)--Approve City Council Minutes) 83 09/02/2025
Unofficial Minutes Redding City Council, Regular Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
September 2, 2025, 6:00 PM
The meeting was called to order at 6:06 p.m. by Mayor Jack Munns with the following Council Members present: Dr. Paul Dhanuka, Mike Littau, and Erin Resner. Council Member Tenessa Audette participated telephonically. All votes taken by roll call.

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 Resner.

The Invocation was provided by Gordon DeWitt, Redding Police and Fire Departments’ Chaplain.

PUBLIC COMMENT
The following spoke in support of reinstatement of the Shasta SuperMoto’s license Agreement:

Rhonda Monroe, Mark Monroe, Shiree Cano, Allie Severson, Chris Severson, and Jamie Mobilia.

Zackery Scott noted that he was one of the founding members with Mark Monroe and wanted to clear up some misinformation on social media that the Shasta SuperMoto has been a club for 12 years, but it has actually only been 10.

Nick Gardner expressed his frustration with decisions by the previous and current City Managers, and also suggested that the City of Redding get rid of the Council-Manager form of government, and institute a Mayor-Council form instead to lead the City of Redding, with an election for the Mayor every two years.

Robert Sid opined that: (1) political and non-political leaders should assist the healthcare community in its recruiting efforts; (2) he opposed granting money to a non-profit; and (3) opposed the City Manager appointing his successor.

Council Members Dhanuka and Resner reiterated to Mr. Sid and the community that only the City Council makes those decisions related to the hiring of the Interim and permanent City Manager positions.

Steve Kohn and Jenny expressed support for City staff and the City’s current financial auditing system in place and spoke in opposition to Council Member Audette’s social media posts.

The following spoke in support of public transparency and performing a forensic audit of the City of Redding’s financials: Jay Dunlap, Leslie Sawyer, and Margaret Hansen.

Mayor Munns declared his trust of City staff, including City Manager Tippin, Assistant City Manager Bade, City Attorney Curtis, and all of the other City staff. He noted that he has met with City Manager at least 300 times over the last three years, and opined that he does a great job, and further expressed his appreciation for City staff.

Delores Lucero advised the Council of her submittal of a public records request relative to Council Member Audette’s budget document shared through social media, and opined that she will not be making any judgements until researching the facts for herself through the public records request.

In response to Mr. Sid’s earlier public comment, Council Member Resner provided a brief timeline from when the Council was first made aware of City Manager’s wish to retire in 2023. She explained what the process is regarding searching for, selecting, and the hiring of a new City Manager.

Packet Pg. 10
Attachment: ^Unofficial Minutes - Regular Meeting of September 2, 2025 (4(a)--Approve City Council Minutes) 84 09/02/2025

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(b). Adopt Ordinance No. 2682, an ordinance of the City Council of the City of Redding, amending Redding Municipal Code (RMC) Title 7 (Business Taxes, Licenses and Regulations) by adding RMC Chapter 6.42 (Entertainment Zones).

Mayor Munns and Mayor Pro Tempore Resner recused themselves from voting on this item due to property ownership within the Entertainment District boundaries.

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.

4.1(b). Adopt Resolution No. 2025-068, a resolution of the City Council of the City of Redding, designating the City Manager, Assistant City Manager, and Finance Director, as the City of Redding’s Authorized Agents to work with the California Office of Emergency Services (Cal-OES) for the purpose of executing all required documentation to obtain state and federal disaster funding for a period of three years.

4.1(c). Authorize and approve the following actions regarding the disposition of City of Reddingowned real property at 7251 Eastside Road (Assessor’s Parcel Nos. 050-050-010 and 050- 070-008): (1) adopt Resolution No. 2025-069, a resolution of the City Council of the City of Redding, declaring the property as exempt surplus property, subject to the retention of any existing easements for public service utilities; and (2) find that the activity is categorically exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15312 - Surplus Government Property Sales.

4.2(a). Adopt Resolution No. 2025-070, a resolution of the City Council of the City of Redding, approving and adopting the 9th Amendment to City Budget Resolution No. 2025-049 allocating the remaining, unappropriated funds to complete the Redding Regional Airport Runway 16-34 Rehabilitation Project.

4.2(b). Authorize and approve the following for Request for Proposal No. 5598, Providing Concession to Operate the Public Parking Facility at Redding Regional Airport for the City of Redding: (1) award to LAZ Parking California, LLC; (2) authorize the City Manager, or designee, to sign and execute the Concession Agreement for operation of the passenger terminal public parking facilities at the Redding Regional Airport; and (3) find that the action is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities.

4.5(a). Authorize and approve the following relative to Bid Schedule No. 5575 – Overhaul Two Transformers at Waldon Substation for the Redding Electric Utility: (1) reject all bids received for Bid Schedule No. 5575; (2) authorize the City Manager, or designee, to execute the Goods Purchase and Service Agreement with Delta Star, Inc. for a total cost, including tax, of $257,961.00; (3) authorize the City Manager, or designee, to approve an additional $51,500.00 as a contingency for unforeseen cost escalations; and (4) find that the project is categorically exempt from environmental review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities.

4.6(a). Authorize and approve the following related to the Lower Salt Creek Trail: (1) accept the Trail Easement Deed for several sections of natural surface trail that route onto Assessor’s Parcel Nos. 204-050-044, 204-040-005, and 065-310-009, at no cost; (2) authorize the Mayor to execute the deed and any other documents to complete the transaction; and (3) find that the action 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 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.

Packet Pg. 11
Attachment: ^Unofficial Minutes - Regular Meeting of September 2, 2025 (4(a)--Approve City Council Minutes) 85 09/02/2025

4.11(b).Authorize and approve the following actions relative to Public Works Agreement (Bid Schedule No. 5548) with Northern Valley Flooring for the Redding Library Flooring Replacement Project: (1) approve the First Amendment to Public Works Agreement (C-5548) with Monroy Flooring, Inc. for the Redding Library Flooring Replacement Project; and (2) authorize the Mayor to execute the Amendment.

4.11(c).Authorize and approve the following: (1) approve the acquisition of Public Services Easements at 200 Lake Boulevard (Assessor’s Parcel Number (APN) 113-330-009) and 2210 Blue Oak Drive (APN 203-220-007) at no cost to the City of Redding; (2) authorize the Mayor to execute all legal documents necessary to complete the acquisitions; and (3) find this action to be categorically exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15305 – Minor Alterations to Land Use Limitations.

4.11(d).Authorize and approve the following actions relative to Bid Schedule No. 5595, (Job No. 2685) Systemic Left Turn Project: (1) award to SnL Group, in the amount of $1,699,833; (2) approve $185,070 for construction contract administration and inspection costs; (3) approve $285,030 for project development costs; (4) approve $170,000 to provide construction contingency funding; (5) authorize the City Manager, or designee, to approve additional increases in either the construction management or construction contingency amount up to a total of $25,000; and (6) find that the project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 - Existing Facilities and Section 15302 – Replacement or Reconstruction.

4.14(a).This item was moved to the Regular Calendar as item number 9.14(a) at the request of Council Member Resner.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Munns, that the foregoing items on the Consent Calendar be accepted, acknowledged, adopted, approved, 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
Ordinance No. 2682, and Resolution Nos. 2025-068 through 2025-070, are on file in the Office of the City Clerk.

PUBLIC HEARINGS

6.1. Public Hearing to consider adopting a Resolution forming Sanitary Sewer Maintenance District 01-25, (Salt Creek 4).

Public Works Director Michael Webb provided an overview of the Report to City Council (staff report), incorporated herein by reference.

The hour of 6:51 p.m. having arrived, Mayor Munns opened the Public Hearing.

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

Mayor Munns determined that no one present wished to address this matter, closed the Public Hearing, and instructed the City Clerk to tabulate the ballots.

Following tabulation, City Clerk Tipton announced that one ballot was mailed to the owner of the parcels, and one ballot was received back in favor of formation of SSMD 01-25 (Salt Creek 4), thereby enabling the City Council to proceed.

Packet Pg. 12
Attachment: ^Unofficial Minutes - Regular Meeting of September 2, 2025 (4(a)--Approve City Council Minutes) 86 09/02/2025
A MOTION WAS MADE by Council Member Resner, seconded by Council Member Munns, to: (1) adopt Resolution No. 2025-071, a resolution of the City Council of the City of Redding,: (a) confirming results of the election of the assessment district; (b) confirming the assessments contained in the Engineer’s Report for said district; (c) ordering the formation of territory into Sanitary Sewer Maintenance District 01-25 (Salt Creek 4) for Fiscal Year 2026-27; and (d) approving the annual assessments for Fiscal Year 2026-27 pursuant to the Improvement Act of 1911, Streets and Highways Code, Chapter 26, Maintenance Districts, Section 5820, et. seq. and levying and collecting the same for Fiscal Year 2026-27. The Vote:

AYES: Council Members – Audette, Dhanuka, Littau, Resner, and Munns NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution No. 2025-071 is on file in the Office of the City Clerk.

6.2. Public Hearing to consider adopting a Resolution adding a Tobacco Retail License Fee for the sale of Tobacco and Tobacco products.

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

The hour of 6:57 p.m. having arrived, Mayor Munns opened the Public Hearing.

Kristen Schreder thanked Council and staff for their continued efforts and support of this tobacco retail license ordinance to protect the health of the community and especially the youth.

The Mayor determined that no one else present wished to speak and closed the Public Hearing.

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

A MOTION WAS MADE by Council Member Dhanuka, seconded by Council Member Resner, to adopt Resolution No. 2025-072, a resolution of the City Council of the City of Redding, effective October 2, 2025, approving the addition of a Tobacco Retail License fee in the amount of $1,176.63 per retailer, to the City of Redding’s Schedule of Fees and Services Charges related to the sale of tobacco and tobacco products.

The Vote:

AYES: Council Members – Dhanuka, Littau, Resner, and Munns NOES: Council Members – Audette
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution No. 2025-072 is on file in the Office of the City Clerk.

REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES

9.1(d). Lease Agreement with the County of Shasta for real property located at 7251 Eastside Road.

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

Mr. Gibilisco noted that the Shasta County Sheriff would use this property to expand and/or extend the County of Shasta’s Alternate Custody Program and potentially for construction of a new jail.

The following spoke in favor of the Lease Agreement: Steve Kohn, Benjamin Nowain, and Leslie Sawyer.

A discussion amongst the Council ensued.

Packet Pg. 13
Attachment: ^Unofficial Minutes - Regular Meeting of September 2, 2025 (4(a)--Approve City Council Minutes) 87 09/02/2025
A MOTION WAS MADE by Council Member Littau, seconded by Council Member Resner, to: (1) approve the Real Property Lease Agreement and Exhibit B - Purchase Agreement for lease/sale of City of Redding-owned real property located at 7251 Eastside Road (APNs 050-050-010 and 050-070-008) to the County of Shasta; (2) authorize the Mayor to execute any documents related to this lease/sale of real property to the County of Shasta; (3) find that the transfer of the land to the County of Shasta serves a valid public purpose in that it enhances public safety and provides positive change to the Sheriff’s Alternative Custody Programs; and (4) find that the action is exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to Section 15312 - Surplus Government Property Sales.

The Vote:

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

9.6(b). Resolution approving financial assistance for Advance Redding and approving a lease amendment for the Civic Auditorium located at 700 Auditorium Drive.

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

Steve Kohn opined his support for this agreement, and cautioned that the deferred maintenance is the larger issue and if the proposed sales tax measure fails, he opined that the Civic Auditorium will have to close.

A discussion amongst the Council ensued.

Council Member Dhanuka stated that although he wants the Civic Auditorium to remain open, as it is a community asset and loved by the public, he suggested only giving half of the grant to Advance Redding now, and then granting the other half once they provide a sustainable future plan.

In response to Council Member Dhanuka, Advance Redding Chief Executive Officer Julie Dyer informed the Council that due to the unique contract between Advance Redding and the City of Redding, it will be unable to secure events without approval of this modified agreement.

In response to Council Member Audette, Director Menne noted that these funds were originally set aside as land sale funds for the Sheraton property for the specific use of maintaining the Civic Auditorium or completing projects for it, however, the funds could be put toward other uses at Council’s direction.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Littau, to approve the following actions relative to providing financial assistance to Advance Redding for the operations of the Redding Civic Auditorium: (1) adopt Resolution No. 2025-073, a resolution of the City Council of the City of Redding, changing the initial designation of capital improvements and deferred maintenance to the Civic Auditorium to the purpose of providing a grant to assist with operational expenses at the Civic Auditorium; (2) authorize the Mayor to execute the First Amendment to the Amended and Restated Civic Auditorium Lease Agreement (C-5682) with Advance Redding deferring the $5,000 per month lease payments until January 2026; (3) authorize the Mayor to execute the Grant Agreement with Advance Redding in an amount not to exceed $675,445.27; and (4) adopt Resolution No. 2025-074, a resolution of the City Council of the City of Redding, approving and adopting the 10th Amendment to City Budget Resolution No. 2025-049 appropriating $675,450 for the Advance Redding assistance grant.

The Vote:

AYES: Council Members – Audette, Littau, Resner, and Munns NOES: Council Members – None
ABSTAIN: Council Members – Dhanuka
ABSENT: Council Members – None
Resolution Nos. 2025-073 and 2025-074 are on file in the Office of the City Clerk.

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Attachment: ^Unofficial Minutes - Regular Meeting of September 2, 2025 (4(a)--Approve City Council Minutes) 88 09/02/2025

9.8(b). Ordinance repealing Ordinance No. 2642 to remove Redding Municipal Code Chapter

6.18 18 (Emergency Medical Service First Responder Fee).

Fire Chief Jerrod Vanlandingham highlighted the Report to City Council (staff report), incorporated herein by reference.

A MOTION WAS MADE by Council Member Dhanuka, seconded by Council Member Munns, to introduce Ordinance No. 2683, an ordinance of the City Council of the City of Redding, repealing Ordinance No. 2642 to remove Redding Municipal Code Title 6 (Business Taxes, Licenses and Regulations), Chapter 6.18 (Emergency Medical Service First Responder Fee), for first reading, and waived the full reading.

The Vote:

9.14(a). Item 4.14(a) was moved from the Consent Calendar at the request of Council Member Resner.

Finance Director/City Treasurer to prepare a written response to Council Member Audette's published Redding Budget Findings Report.

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

City Attorney Curtis noted that this was on consent to make sure this is actually what the Council was looking for in terms of the report, and if not, then to give alternative direction.

For the purposes of this report, the City Manager is abstaining from any input or review and the document will be provided through the City Attorney’s office.

Council Member Resner wanted to ensure that the City issues a press release at the same time that Council receives the report, and have it posted on the City’s website as well.

Ben Nowain spoke in support, and expressed frustration with Council Member Audette’s independent budget document, and her opposition to the proposed sales tax increase that is initiated by citizens, not City staff.

Delores Lucero opined that Council Member Audette is expressing her concerns with the City’s finances without evidence.

Leslie Sawyer expressed support of Council Member Audette and her financial budget document and opined that a forensic financial audit needs to be done before the City Manager retires.

David Hallagan supported the Finance Director providing a response to Council Member Audette’s allegations concerning the City Manager and the Finance Department, noting that a thorough review needs to be done by the Finance Director to protect the city from legal liability and, if appropriate based on the results, to safeguard the reputation of the City’s Finance Department and the City Manager and ensure a fair outcome for all parties.

Council Member Audette requested that the response be presented at a future Council meeting for discussion.

A discussion amongst the Council ensued.

In response to Council Members Dhanuka and Resner, Finance Director Greg Robinett advised the Council that it is within their jurisdiction to direct staff to hire an independent audit firm, at the cost of approximately $150,000, however, a formal audit review would take a substantial amount of time due to staff limitations and current audit cycle preparations.

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Attachment: ^Unofficial Minutes - Regular Meeting of September 2, 2025 (4(a)--Approve City Council Minutes) 89 09/02/2025
A MOTION WAS MADE by Council Member Audette, seconded by Council Member Dhanuka, to: (1) authorize the request for the City Treasurer/Finance Director to prepare a written response to Council Member Tenessa Audette’s published Redding Budget Findings document for Council’s review; (2) authorize staff to release a response via:
(a) direct communication with Council; (b) issuance of a press release; (c) publishing the response on the City of Redding’s website; and (3) direct the City Treasurer/Finance Director to present the response for discussion at a future Council Meeting, at least a week after release of the response to Council and the public.

The Vote:

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

SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS FOR

FUTURE CITY COUNCIL MEETINGS
At Council Member Audette’s suggestion, a consensus of the Council directed staff to return to Council at a future Council Meeting to present a list of funds that could potentially be reallocated to the City of Redding’s General Fund.

ADJOURNMENT
There being no further business at the hour of 8:09 p.m., Mayor Munns declared the meeting adjourned.

APPROVED:
______________________________
Jack Munns, Mayor
ATTEST:
____________________________
Sharlene Tipton, City Clerk
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Attachment: ^Unofficial Minutes - Regular Meeting of September 2, 2025 (4(a)--Approve City Council Minutes) 107
09/16/2025
Unofficial Minutes Redding City Council, Special Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
September 16, 2025, 5:30 PM
The meeting was called to order by Mayor Jack Munns with the following Council Members present: Tenessa Audette, Mike Littau, and Erin Resner. Council Member Dr. Paul Dhanuka is absent.

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.

CLOSED SESSION
At the hour of 5:31 p.m., Mayor Munns opened the Special Meeting and announced that the Council would adjourn to Closed Session.

At the hour of 5:44 p.m., Mayor Munns reconvened the Special Meeting to Open Session and reported that in reference to:
3A. Closed Session pursuant to California Government Code Section 54957.6:

CONFERENCE WITH LABOR NEGOTIATOR
Designated Agency Representative: Personnel Director Kibler Employee Organizations:
(1) Redding Independent Employees’ Organization - Clerical, Technical and Professional Unit;
(2) Redding Independent Employees’ Organization - Supervisory & Confidential Unit Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.

ADJOURNMENT
There being no further business at the hour of 6:00 p.m., Mayor Munns declared the meeting adjourned.

APPROVED:
______________________________
Jack Munns, Mayor
ATTEST:
____________________________
Sharlene Tipton, City Clerk
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Attachment: ^Unofficial Minutes - Special Meeting - Closed Session of September 16, 2025 (4(a)--Approve City Council Minutes) 108
09/16/2025
Unofficial Minutes Redding City Council, Regular Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
September 16, 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, Mike Littau, and Erin Resner. Council Member Dr. Paul Dhanuka was absent.

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 Patrick A. Blewett, Executive Dean, Simpson University.

PRESENTATIONS
2A. Resolution honoring City Manager Barry Tippin for distinguished service to the City of Redding.

Nick Gardner spoke in opposition to Mr. Tippin’s tenure at the City of Redding.

Steve Kohn and Mark Mezzano thanked Mr. Tippin for his leadership, time, and service with the City of Redding.

Mayor Munns read out loud and presented City Manager Tippin with a draft resolution to be prepared and given to him at a later date. He thanked Mr. Tippin for his leadership to the City of Redding and its citizens.

Mr. Tippin expressed his frustration with ending his career with a Council Member attacking his character, however, he thanked the City Council, staff, his wife and family, and his Executive Assistant Camile Woodstrom, for a very successful and full career with the City of Redding.

A MOTION WAS MADE by Council Member Munns, seconded by Council Member Littau, to adopt Resolution No. 2025-075, a resolution of the City Council of the City of Redding, honoring Barry Tippin for distinguished service to the City of Redding.

The Vote:

AYES: Council Members – Audette, Littau, Resner, and Munns NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – Dhanuka
Resolution No. 2025-075 is on file in the Office of the City Clerk. 2B. Danny Orloff, Visit Redding Tourism Marketing Director, provided a PowerPoint presentation, providing a quarterly report regarding tourism marketing and promotion efforts for the City of Redding, both incorporated herein by reference.

A discussion amongst the Council ensued.

The City Council took no action on this informational item. 2C. Willie Smith Operations Manager with Christian Church Homes provided a PowerPoint presentation, incorporated herein by reference, relaying an update on past, present, and future projects and activities in the City of Redding. She invited the City Council to attend the Ribbon Cutting event for its new Piper Way project to be held on October 1, 2025.

A discussion amongst the Council ensued.

The City Council took no action on this informational item.

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Attachment: ^Unofficial Minutes - Regular Meeting of September 16, 2025 (4(a)--Approve City Council Minutes) 109
09/16/2025
2D. Ryan Richardson, Executive Director, Superior California Economic Development, provided a PowerPoint presentation, incorporated herein by reference, providing an annual update on activities.

A discussion amongst the Council ensued.

The City Council took no action on this informational item.

PUBLIC COMMENT
Steve Kohn expressed opposition to Council Member Audette’s budget document.

Leslie Sawyer opined her opposition to the Council and urged them to spend time reviewing Council Member Audette’s budget documents.

Lance Law asked Council for assistance regarding a large homeless issue behind the Crown Estates Subdivision.

Janet Chapman thanked staff and Council for their ongoing support of the many micro-shelter, and housing projects to house the underserved population such as the elderly.

Nick Gardner invited Council and the public to listen to his radio show entitled Poke the Hornet’s Nest on KCNR 1460.com
Todd Jones thanked Council and City staff for their continued participation with Visit Redding and the Chamber of Commerce.

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 August 19, 2025; Regular Meeting of August 19, 2025; and Special Meeting of August 22, 2025. 4(b). Adopt Ordinance No. 2683, an ordinance of the City Council of the City of Redding, repealing Ordinance No. 2642 to remove Redding Municipal Code (RMC) Section 6.18 (Emergency Medical Service First Responder Fee) from RMC Title 7 (Business Taxes, Licenses and Regulations).
4(c). Accept the following City of Redding Accounts Payable and Payroll Registers:
(1) Accounts Payable Register No. 2 for the period of August 1, 2025, through August 31, 2025, in the amount of $31,853,481.28; (2) Payroll Register No. 3 for the period of July 20, 2025, through August 2, 2025, in the amount of $3,047,318.31; and (3) Payroll Register No. 4 for the period of August 3, 2025, through August 16, 2025, in the amount of $3,096,937.71; for a summary total of $ 37,997,737.30.

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.

4.1(b). Adopt Resolution No. 2025-076, a resolution of the City Council of the City of Redding, amending the Schedule of Administrative Fines thereby adding administrative fines for violations of the Redding Municipal Code relating to violations of the Tobacco Retail License ordinance.

4.3(a). Authorize and approve the following: (1) adopt Resolution No. 2025-077, a resolution of the City Council of the City of Redding, authorizing the City of Redding as an applicant for the California Governor’s Office of Emergency Service’s Fiscal Year 2025 State and Local Cyber Security Grant Program in an amount up to $250,000; and (2) authorize the City Manager, or designee, to execute all documents necessary to apply for the grant.

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Attachment: ^Unofficial Minutes - Regular Meeting of September 16, 2025 (4(a)--Approve City Council Minutes) 110
09/16/2025

4.3(b). Authorize and approve the purchase of Microsoft Licenses and/or software products on the Microsoft Enterprise Agreement No. 8084445 between Dell as reseller and the City of Redding (City), on behalf of City Departments, as deemed necessary, through the proper purchasing procedures, for routine expenditures not-to-exceed the requesting department’s fiscal year budgeted amount for said items.

4.5(a). Authorize and approve the following actions related to Bid Schedule No. 5615 – ThreePhase, Pad-Mounted Distribution Transformers for the City of Redding Electric Utility:
(1) award the contract to General Pacific, Inc., in the amount of $1,258,570.97; (2) authorize the Purchasing Officer to extend the bid award annually, through September 30, 2029, subject to mutual agreement, with all terms and conditions unchanged and pricing adjustments tied to the Producer Price Index; and (3) authorize the City Manager, or designee, to approve up to $503,430 per fiscal year as a contingency to address unforeseen costs.

4.5(b). Authorize and approve award of Bid Schedule No. 5631 – Furnish and Deliver PadMounted Distribution Switches for the Redding Electric Utility to Anixter, Inc., in the amount of $221,256.75.

4.5(c). Authorize and approve the following actions related to the Long-Term Parts, Services, and Inspections Agreement, (C-5661), with Siemens Energy Inc., for repairs at the City of Redding Power Plant: (1) approve Change Order No. 50 to upgrade the Lube Oil System Variable Frequency Drives for Generating Unit 5, in an amount not-to-exceed $435,000; (2) authorize the City Manager, or designee, to execute all documents and change orders necessary to complete the project; and (3) find that the project is categorically exempt from environmental review under the California Environmental Quality Act, pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction).

4.11(b).Accept an update relative to the City of Redding’s COVID-19 Economic Stimulus Package Public Works projects.

4.11(c).Authorize and approve the following: (1) accept the Piper Way improvements pursuant to Site Development Permit SDP-2020-01714 as satisfactorily complete; and (2) adopt Resolution No. 2025-078, a resolution of the City Council of the City of Redding, accepting Piper Way and utility improvements for maintenance and operation and accept the dedication to the public for street and public services pursuant to Parcel Map No. 2023- 00344.

4.11(d). Authorize and approve the following actions relative to Bid Schedule No. 5621, Redding Electric Utility Power Plant Maintenance Office Building: (1) award to Gifford Construction Inc., in the amount of $3,152,000; (2) approve an additional $513,000 to cover the cost of administration and inspection fees; (3) approve $345,000 for project development costs; (4) approve $162,000 for furniture, fixtures, and equipment; (5) approve $315,000 to provide construction contingency funding; (6) authorize the City Manager, or designee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000; and (7) find that the Project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities and Section 15303 – New Construction or Conversion of Existing Structures.
**City Clerk’s Note – A bid protest was received by Michael Roberts Construction and both the protest and City Attorney’s response was provided to Council and the public prior to the Council meeting, and hard copies were made available in the City Clerk’s Office and at the Council meeting.

4.11(e).Authorize and approve the following actions relative to Request for Proposal (RFP) Schedule No. 5569, Cardlock Fuel Purchases: (1) award RFP to Ed Staub & Sons through August 31, 2028; and (2) authorize the City Manager, or designee, to extend the contract annually, if mutually agreeable, through August 31, 2030.

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Attachment: ^Unofficial Minutes - Regular Meeting of September 16, 2025 (4(a)--Approve City Council Minutes) 111
09/16/2025
A MOTION WAS MADE by Council Member Resner, seconded by Council Member Munns, that the foregoing items on the Consent Calendar be accepted, acknowledged, adopted, approved, and/or authorized as recommended.

The Vote:

AYES: Council Members – Audette, Littau, Resner, and Munns NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – Dhanuka
Ordinance No. 2683, and Resolution Nos. 2025-075 through 2025-078 are on file in the Office of the City Clerk.

REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES
Mayor Munns left Council Chambers at 7:20 p.m. and returned at 7:22 p.m.

9.10(a).City of Redding's Year-End Budget Review and associated Resolution for Fiscal Year Ended 2025.

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

Leslie Sawyer opined her opposition to the approval of the City of Redding’s Year-End Budget document.

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Littau, seconded by Council Member Resner, to: (1) accept the Fiscal Year 2025 Year-End Budget Report; and (2) adopt Resolution No. 2025-079, a resolution of the City Council of the City of Redding, approving and adopting the 83rd Amendment to City Budget Resolution No. 2023-060 increasing appropriations by $7,354,390.00.

The Vote:

AYES: Council Members – Littau, Resner, and Munns
NOES: Council Members – Audette
ABSTAIN: Council Members – None
ABSENT: Council Members – Dhanuka
Resolution No. 2025-079 is on file in the Office of the City Clerk’s Office.

9.11(f).Oral report regarding City of Redding Public Works' Streets Division update.

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

A discussion amongst the Council ensued.

The City Council took no action on this informational item.

9.11(g).Identify the impact to the General Fund if an additional $10 million annually was redirected for street maintenance.

City Manager Tippin summarized the Report to City Council (staff report) and provided a PowerPoint presentation, both incorporated herein by reference.

A discussion amongst the Council ensued.

The City Council took no action on this informational item.

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Attachment: ^Unofficial Minutes - Regular Meeting of September 16, 2025 (4(a)--Approve City Council Minutes) 112
09/16/2025

SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS FOR

FUTURE CITY COUNCIL MEETINGS
At Mayor Pro Tempore Resner’s suggestion, a consensus of the Council directed staff to return to Council with a report for discussion and consideration of options, if any, at its next meeting on October 7, 2025, regarding the terms and conditions of both the Amended and Restated Civic Auditorium Lease Agreement (C-5682) and the executed Grant Agreement (C-10981) with Advance Redding.

ADJOURNMENT
There being no further business at the hour of 9:38 p.m., Mayor Munns declared the meeting adjourned.

APPROVED:
______________________________
Jack Munns, Mayor
ATTEST:
____________________________
Sharlene Tipton, City Clerk
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Attachment: ^Unofficial Minutes - Regular Meeting of September 16, 2025 (4(a)--Approve City Council Minutes)

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. The California Governor’s Office of Emergency Services (Cal OES) funding is 75% state and 25% local match.

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: October 7, 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
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Report to Redding City Council September 30, 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.

Approximately 200 feet of the overall 700-foot-long, 10-foot diameter culvert had failed and other pipe sections had been compromised. J.F. Shea has completed the installation of new pipe and all the backfill requirements including the placement of the Cell-Crete flowable grout that will fill the annular space around the new fiberglass reinforced pipe and the existing corrugated metal pipe. J.F. Shea has also completed the concrete headwall structure and has placed all of the rip-rap stabilization rock around the inlets for the storm drain. Currently, J.F. Shea is working toward reestablishing the existing surface conditions around each excavation location.

Landscapers will be on site to repair irrigation and existing lawn starting on October 6, 2025 and the completion of all surface restorations are predicted to be completed by the second week of October 2025. J.F. Shea plans on completing the paving operations for the project and reopen the South Bonnyview Boat Launch access road by the end of October 2025, pending any unforeseen issues and inclement weather.

On August 18, 2025, Nur Pon Open Space was partially reopened - one bridge 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 trail and walking bridges, the bathrooms, and the parking lot facility. High river flows had affected staff’s ability to repair a culvert, and flood erosion has made the trail impassable. However, the flows have since subsided and repairs are underway.

Until completed, 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 by the end of October 2025.

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Report to Redding City Council September 30, 2025
Re: 4.1(a)--Confirmation of Continued Local Emergency Due to Flooding Page 3 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, the start of the project was delayed. However, M5 Excavation (M5) continues to make great progress on reestablishing the embankment for the slope protection scope of this project. M5 has completed all of the instream work as of September 25, 2025 and anticipates completing the slope protection by the third week of October 2025, and moving their operations to hydroseeding for permanent erosion control for all the disturbed slopes. The estimated project completion should be around the last week of October 2025, pending any unforeseen issues.

Cal OES has requested estimates for damages to both private and public sites. Staff has met with Cal OES 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). The reimbursement process and exact dollar amounts will be forthcoming from Cal OES.

On August 19, 2025, City staff attended a meeting with Cal OES to discuss the next steps in receiving funding. Staff is in the process of submitting several documents to Cal OES that include a resolution designating City staff as authorized agents that was passed by the Council on September 2, 2025. These documents were sent to Cal OES on Wednesday, September 17, 2025.

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
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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. 26
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. 27
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. 28
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. 29 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. 30 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. 31 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. 32
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. 33
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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7 Packet Pg. 34
Attachment: Resolution No. 2025-011 - Declare Local Emergency with Proclamation (4.1(a)--Confirmation of Continued Local Emergency Due to Packet Pg. 35
Attachment: NOE Parkview Sewer Siphon ER (4.1(a)--Confirmation of Continued Local Emergency Due to Flooding) Packet Pg. 36
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. 37
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 and authorize the following actions regarding the sale of real property located at 6155 Venture Parkway, Stillwater Business Park Lot 12 (Assessor’s Parcel No. 054-260-004) to Technisoil Industrial Inc.:
(1) Approve the First Amendment and Reinstatement to the Real Estate Purchase and Sale Agreement (C-10825) for approximately 25.41 acres of City of Redding (City)-owned property, thereby extending the due diligence period and closing escrow by January 9, 2026;
(2) Authorize the Mayor to execute all related documents needed to complete the transaction; and
(3) Find the sale of the City-owned property is categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (surplus Government Property Sales)
Fiscal Impact
On June 18, 2025, an appraisal of the City of Redding (City) owned property - Parcel 12 at Stillwater Business Park located at 6155 Venture Parkway, Assessor’s Parcel Number 054-260- 004 (Property) - was completed and established a value of $1,080,000 - the agreed upon purchase price. The net funds from the purchase, after subtracting any closing costs, will be deposited into the City’s Capital Project Fund. Per Council Policy 1901 Disposition of CityOwned Real Property, Section Q Use of Proceeds, the use of these funds is subject to City Council’s (Council) consideration and approval. There is no negative impact to the General Fund with this action.

Alternative Action
The Council could choose not to extend the closing date, thereby canceling the original contract with Technisoil Industrial Inc. (Technisoil), and place the property back on the market.

MEETING DATE: October 7, 2025
ITEM NO. 4.1(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.1(b)--First Amendment to the Purchase and Sale Agreement with Technisoil Industrial Inc.

Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 38
Report to Redding City Council October 1, 2025
Re: 4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park Page 2
Background/Analysis
Technisoil, submitted an offer to purchase the subject City-owned property, depicted in the attached parcel map. Technisoil plans to expand their manufacturing of machine technology at the site.

Escrow was originally scheduled to close on August 11, 2025, per the terms of the Purchase and Sale Agreement (C-10825). The First Amendment to the Real Estate Purchase and Sale Agreement extends the due diligence period to December 10, 2025, and extends the escrow closing date to January 9, 2026. Technisoil anticipates that escrow will close sooner, but this extension allows for extra time in the event of unforeseen delays.

Environmental Review
The sale, inclusive of this amendment, of the City-owned property presents no significant impact on the environment and is therefore categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (Surplus Government Property Sales).

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

Attachments
^First Amendment and Reinstatment
^Location Map
Purchase and Sale Agreement
Staff Report May 6, 2025
Packet Pg. 39
Packet Pg. 40
Attachment: ^First Amendment and Reinstatment (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) Packet Pg. 41
Attachment: ^First Amendment and Reinstatment (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) Packet Pg. 42
Attachment: ^First Amendment and Reinstatment (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) S
tillwaterBusinessParkParcel12
ReddingGIS
Sources:Esri,HERE,Garmin,Intermap,incrementPCorp.,GEBCO,USGS, Parcel
GISNumber
0 2/24/2025,3:00:13PM

00.0750.150.3mi

00.10.20.4km
1:9,028
CityofReddingGIS
Packet Pg. 43 Internal Map Viewer
Attachment: ^Location Map (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater

REAL ESTATE PURCHASE AND SALE AGREEMENT
This Real Estate Purchase and Sale Agreement ("Agreement"), dated for reference purposes only as of MA'i' I 3 , 2025, is made by and between the City of Redding, a municipal corporation ("Seller"), and Technisoil Industrial Inc., a Delaware Corporation ("Buyer"),(collectively the "Parties" or individually a "Party"). The latest date for which this Agreement is mutually executed and delivered by both parties is hereinafter referred to as the "Effective Date."

RECITALS
A. Seller is the owner of that certain real property located in the City of Redding, County of Shasta, State of California, in the development of Stillwater Business Park, commonly known as 6155 Venture Parkway, Redding, California 96002, and Shasta County Assessor's Parcel No. 054-260- 004, and legally described as follows:

Parcel 12, as shown on the Map of Stillwater Business Park Parcel Map 5-07 & PD 4- 07, MDM Recorded May 8, 2008, in Book 37 of Parcel Maps at Page 93, and more particularly described in Exhibit "A" hereto (the "Property").

B. Buyer desires to purchase the Property from Seller, and Seller desires to sell the Property to Buyer, on the terms and conditions set forth herein.

NOW, THEREFORE, Seller and Buyer agree as follows:

1. Property Purchased and Sold. Seller agrees to sell and convey all of Seller's rights, title and interest in the Property to Buyer, and Buyer agrees to purchase and accept the conveyance on all of Seller's rights, title, and interest in the Property from Seller, on the terms and conditions set forth herein. The Property shall include all of Seller's rights, title, and interest, if any, in and to (a) all buildings and improvements located on the Property, (b) all water, mineral and other rights appurtenant to the property, to the extent owned by Seller, and (d) the Seller's interest in all transferable permits and licenses, if any, relating to the Property.

2. Purchase Price.

2.1 . The purchase price for the Property shall be the fair market value of the fee simple estate in the Property, at its highest and best use. Such value shall be determined by appraisal as of a date that is no earlier than sixty (60) days prior to the Effective Date in accordance with this Section 2.

2.2. The Seller shall retain an appraiser to appraise the fair market value of the Property as provided for herein (the "Appraiser"). Such Appraiser shall be an MAI Designated member of the Appraisal Institute ("MAI") who has a minimum of ten (10) years of experience appraising similar properties within the State of California. The appraisal and resulting appraisal report (the "Appraisal Report") shall be a standalone appraisal of the fair market value of the Property only (i.e., it shall not be a new or updated appraisal of the fair market values of all of the Seller's unsold parcels within Stillwater Business Park).

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TECI-INISOIL INDUSTRIAL INC.

App-ro-1d
Page I
0 Do
f'..l
lJ\
Packet Pg. 44
Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park)

2.3. The analyses, opinions, and conclusions of the Appraiser shall be based upon, and the Appraisal Report shall be prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice, and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.

Buyer and Seller shall be intended users of the appraisal and Appraisal Report.

2.4. The appraisal and Appraisal Report shall be completed no later than f01ty-five (45) days following the Effective Date. Seller shall provide Buyer with a copy of the Appraisal Report promptly following receipt thereof from the Appraiser. The fair market value of the Property as set forth in the Appraisal Report shal I be the purchase price for the Propetty (the "Purchase Price"). If Buyer does not approve of the Purchase Price as determined by the Appraisal Report, Buyer shall have the right to terminate this Contract within five (5) business days of Buyer's receipt of the Appraisal Report. If Buyer terminates this Contract under this Paragraph by providing notice to Seller, all refundable Earnest Money, shall be returned to Buyer and the parties shall be relieved of any further obligations hereunder.

3. follows:

2.5. Seller to pay for appraisal costs.

Payment; Deposit. Buyer shall pay the Purchase Price to Seller through the Escrow as

3.1. Within five (5) business days following the Effective Date, Buyer shall deliver to the Escrow Agent the sum of Ten Thousand Dollars ($10,000.00) by wire transfer or other immediately available funds (the "Deposit"). The Deposit shall be applicable (1) to the Purchase Price upon the Close of Escrow, should that occur, or (b) refunded to the Buyer if this Agreement is terminated by any Party without cause prior to the expiration of the Due diligence Period, or (c) paid to the Seller as liquidated damages, in each case as otherwise provided herein.

3.2. At least two (2) business day prior to the Close of Escrow, Buyer shall deliver to the Escrow Agent cash or other immediately available funds in an amount equal to the Purchase Price, less the Deposit (the "Balance of the Purchase Price") ..

3.3. The Purchase Price, less all charges to Seller's account provided for herein, will be distributed to Seller from the Escrow upon the Close of Escrow.

4. [Intentionally Omitted). This section has been intentionally left blank.

5. Escrow. Within five (5) business days following the Effective Date, Buyer and Seller shall open an escrow ("Escrow") interest-bearing account with Placer Title Company, 2145 Larkspur Lane, Suite A, Redding, California 96002, Attention: Norma Chicoine (the "Escrow Agent"). This agreement shall constitute escrow instructions to and for the benefit of the Escrow Agent to facilitate the Closing (as defined below). Prior to the Closing Date, Seller and Buyer may each give any additional written escrow instructions to the Escrow Agent which are reasonably necessary to accomplish the Closing in accordance with this Agreement; provided that, in the event of any conflict between any such supplemental escrow_ instructions and the provisions of this Agreement, the provisions of this Agreement shall control.

6. Close of Escrow. Deliveries

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CITY or REDDING/ TECHNISOIL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park)

6.1. The purchase and sale of the Property will be accomplished through the Escrow. Seller shall convey title to the Property to Buyer by Quitclaim Deed in the form attached hereto as Exhibit "B" (the "Quitclaim Deed"). "Close of Escrow" or "Closing" is defined to be the date the Quitclaim Deed, is recorded in the Official Records of Shasta County, California (the "Official Records"). The Quitclaim Deed shall be recorded and the Escrow shall close thirty (30) days following the expiration of the Due Diligence Period (as defined below) (the "Closing Date"); provided, however, that Buyer shall have the right to elect an earlier Closing Date if the conditions to the Close of Escrow and Buyer's and Seller's obligations set forth in Sections 12 and 13 below, or elsewhere herein, are satisfied or waived by such earlier Closing Date.

6.2. Seller shall deposit the following items with the Escrow Agent at least two business (2) days prior to the Close of Escrow, and shall cause such items to be recorded and/or delivered to Buyer at the Close of Escrow:

6.2.J. The Quitclaim Deed, duly executed and acknowledged by the Mayor of the City of Redding on behalf of the Seller, approved as to form by the City Attorney, and Attested to by the City Clerk, conveying fee title to the Property to Buyer, subject only to the Approved Exceptions (as defined below); and

6.2.2. Such other ce11ificates, assurances, consents and documents as are usual and customary in Shasta County, California and/or as may reasonably be required by the Buyer, Escrow Agent, or Title Company in connection with the consummation of the transactions contemplated hereby, including, but not limited to, any affidavits or other instruments required by the Title Company to enable it to issue the Title Policy (as defined below) to Buyer (provided, however, that Seller shall not be obligated to provide the Escrow Agent or Title Company with any indemnity agreement, or any owner's affidavit, information statement, or other representation or warranty, in order to induce the Title Company to issue the Title Policy to Buyer hereunder).

6.3. Buyer shall deposit the following items with the Escrow Agent at least two business (2) days prior to the Close of Escrow, and shall, except for the funds provided for in subsection

6.3.3 , cause such items to be delivered to Seller at the Close of Escrow:

6.3.1 The Balance of the Purchase Price in immediately available funds;

6.3.2 Immediately available funds in an amount sufficient to pay the fees and costs payable by Buyer under this Agreement; and

6.3.3 Such other and fmther ce11ificates, assurances, consents and documents as are usual and customary in Shasta County, California and may reasonably be required by Seller, the Escrow Agent, or Title Company in connection with the consummation of the transaction contemplated hereby.

6.4 Immediately following the recording of the Quitclaim Deed, the Escrow Agent shall (a) disburse the Purchase Price, less all charges to Seller's account provided for herein, to Seller; (b) distribute any and all conveyances, assignments and all other instruments and documents as may be reasonably necessary in order to complete the transaction herein provided and to carry out the intent and purposes of this Agreement.

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TECHNISOIL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park)

7. Title.

7.1 Seller shall convey title to the Property to Buyer by the Quitclaim Deed, subject to all covenants, conditions, restrictions, reservation, encumbrances, and other matters affecting title to the Prope1ty, the improvements thereon, any interest therein, or any pmtion thereof, whether or not of record. Buyer shall obtain the Title Policy described in Section

8.7 below for the purposes of insuring the Buyer's title to the Property.

8. Preliminary Title Report; Title Insurance.

8.1. Title Report. Seller shall be responsible, at its own expense, for obtaining a preliminary report issued by the Title Company covering the Property and best available copies of any and all instruments referred to therein as constituting exceptions, conditions or restrictions upon title to the Property and best available copies of any and all instruments referred to therein as constituting exceptions, conditions or restrictions upon title to the Prope1ty ("Title Report"). Within ten (10) business days following the Effective Date, Seller shall order a Title Repmt and ensure it is delivered to Buyer immediately after it is issued by the Title Company.

8.2. Survey. Within ten (10) business days after the Effective Date, Seller shall provide Buyer with a copy of the existing survey of the Property currently in the possession of Seller, if any ("Existing Survey"). If Buyer so elects, Buyer may order an update of the Existing Survey ("Updated Survey") at Buyer's sole cost.

8.3. Title Objections. No later than ten (10) business days prior to the expiration of the Due Diligence Period, Buyer shall provide written notice to Seller disapproving any title matters set fo1th in the Title Report and the Existing Survey (or the Updated Survey if obtained by Buyer prior to the Due Diligence Period) ("Buyer's Title Notice"). If Buyer fails to provide written notice, Buyer shall be deemed to have accepted and approved the matters set forth in the Title Report and the Existing Survey or Updated Survey. Seller shall have five (5) business days ("Seller's Response Period") after receipt of Buyer's Title Notice to notify Buyer of Seller's intent to cause any items disapproved by Buyer to be removed or cured by the Close of Escrow. If Seller fails to notify Buyer within Seller's Response Period that Seller does not intend to cause the disapproved items to be removed or cured, then Seller shall be deemed to have not agreed to remove or cure such disapproved items. If, within Seller's Response Period, Seller notifies Buyer that Seller does not intend to cause the disapproved items to be so removed or cured (or is deemed to have agreed not to remove or cure the same), then Buyer shall, by the later of five (5) business days after the expiration of Seller's Response Period or the expiration of the Due Diligence Period, whichever is earlier, either waive Buyer's objections to those title matters that Seller has not agreed to remove or cure, or terminate this Agreement upon written notice to Seller and Escrow Agent. If this termination is effective prior to the expiration of the sixty (60) day Due Diligence Period, Buyer shall immediately receive a full refund of the Deposit, neither Paity shall have further liability or obligation hereunder, except as otherwise expressly provided hereunder.

8.4.Approved Exceptions. Any title matters approved by Buyer (or for which Buyer has waived an objection) pursuant to Section 8.3 above, all matters caused,

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CITY or REDDING/ TECHNISOIL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) created, approved or expressly permitted by Buyer in writing, and all non-delinquent general and special real property taxes and assessments for the current fiscal year are referred to herein as the "Approved Exceptions." Notwithstanding the preceding sentence, Section 8.3 above, or any other provision of this Agreement to the contrary, in no event shall Approved Exceptions include, nor shall Buyer be required to provide any objection to, any of the following (collectively, "Monetary Liens"): (a) any mortgage, deed of trust, or other instrument securing any financial obligation of any Party other than Buyer, (b) any tax liens, abstracts of judgments, mechanics' liens or similar liens or encumbrances which require any monetary payment to remove or release, (c) the lien of any delinquent taxes or assessments, and (d) any notices of default, foreclosure notices, or similar notices reflecting any action being taken to assert or foreclosure upon any lien or encumbrance.

8.5. Seller's Obligation to Remove. Seller, at its sole cost and expense, shall be obligated to remove and release, on or before the Close of Escrow (and without any independent right to extend the Closing Date), (a) any matter where, pursuant to Section

8.3 above, Seller has agreed, or is deemed to have agreed, to remove, (b) any Monetary Liens, and (c) any additional title encumbrances or exceptions (whether or not such constitute a Monetary Lien) which become known, arise, or are created following the expiration of the Due Diligence Period, other than those placed on the Prope11y by Buyer or otherwise accepted by Buyer in writing notifying Seller that need not remove or release the matter.

8.6. Title Update or Supplement. In the event any update of the Title Report or the Existing Survey (or Updated Survey), if any shows any new matters or conditions affecting title to the Prope11y not set forth on the original Title Repo11 or Existing Survey (each, a "New Title Matter"), then, no later than the later three (3) business days after Buyer's receipt of such updated Title Report, Buyer shall have the right to object to any such matter, in which event the same procedures for response, termination and waiver set forth above in Section 8.3 and Seller's obligations with respect to Monetary Liens shall apply to each New Title Matter.

8.7. Title Insurance. Seller shall cause Title Company to commit to issue to Buyer at the Close of Escrow an ALTA standard coverage owner's policy of title insurance (2006) insuring fee title to the Property vested in Buyer, subject only to the Approved Exceptions, with coverage in an amount equal to the Purchase Price and such endorsements requested by Buyer ( collectively, the "Title Policy").

9. Seller's Property Documents. Within ten (10) days following the Effective Date, Seller shall deliver the following to Buyer: (a) a Natural Hazard Disclosure Report with respect to the Property; (b) a Title Repo11 if any; and (c) true, correct and complete copies of any permits, approvals and other items relating to governmental entitlements; any engineering, geological, archeological, biological studies, soils, or other studies, tests, or reports; any environmental and hazardous material reports and notices; copies of all leases and contracts, if any, affecting the Propetty and any amendments or side letters thereto; tax and assessment statements; public notices pettaining to the Prope1ty; all "Phase J", "Phase II" and other studies, assessments, or reports relating to the environmental condition of the Property, and all architectural, engineering, grading and other plans and similar data relating to the Property; any documents regarding any filed or threatened litigation affecting or relating to the Prope1ty; and any other material data and information about the Property in Seller's possession or are reasonably available to Seller (collectively, "Seller's Prope11y Documents").

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TEC!-JN!SO!L INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) In the event Seller prepares or acquires any of the foregoing or similar items after the Effective Date, Seller shall promptly deliver copies thereof to Buyer.

10. Entry, Inspection and Approval Rights; Due Diligence Period.

I 0.1. For purposes of this Agreement, the term "Due Diligence Period" means the period beginning on the Effective Date and ending at 5:00 p.m., local time, on the sixtieth (60th) day following the Effective Date. Prior to the expiration of the Due Diligence Period, Buyer and Buyer's employees, agents, consultants, independent contractors and lenders shall have the non-exclusive right to enter upon the Property to conduct all inspections and investigations of the Property as Buyer deems necessary or advisable in its sole discretion. Any such inspection or investigation may only be conducted after providing reasonable notice to Seller. Such inspections and investigations may include, but shall not be limited to, Phase 1, Phase 2 and other environmental site assessments. All costs associated with such inspections and investigations shall be borne by Buyer.

10.2. Buyer's obligation to purchase the Property is expressly conditioned upon Buyer's approval, in its sole discretion, of any and all matters disclosed by Seller's Property Documents and/or any inspections and investigations of or relating to the Property Buyer elects to undertake. In the event Buyer disapproves of any such items, Buyer shall deliver written notice thereof to Seller and the Escrow Agent on or before the expiration of the Due Diligence Period. If Buyer fails to deliver a written notice of disapproval to Seller and the Escrow Agent within such time period, Buyer shall be deemed to have approved of all of the Seller's Property Documents delivered to Buyer and Buyer's inspections and investigations of the Prope1iy, and this transaction shall proceed. No approval or deemed approval of Seller's Property Documents and Buyer's inspections and investigations of the Property shall relieve Seller from any liability or obligations for breach or default of any representation, warranty, covenant or agreement of Seller herein. If Buyer delivers a written notice of disapproval to Seller prior to the expiration of the sixty (60) day Due Diligence Period, then this Agreement shall terminate, the Deposit shall be returned to Buyer, and neither party shall have any further liability or obligation under this Agreement except as otherwise provided herein.

I 0.3. Buyer shall provide to Seller, at no charge, copies of any site specific exploratory reports including soils and environmental assessments, if any, of the Property or the improvements thereon within five (5) days following any termination of this Agreement. Buyer is under no obligation to provide reports and analysis that is specific to future building(s) and or is proprietary in nature to the design and operations of the future buildings and business.

I 0.4. Buyer shall, at Buyer's sole cost and expense, promptly repair any and all damage to the Property or any improvements thereon resulting from any tests, studies, inspections and investigations performed by or on behalf of Buyer pursuant to this Section I 0. Buyer shall also indemnify, defend, protect and hold Seller, and its elected officials, agents, employees, independent contractors, trustors, trustees, beneficiaries, successors and assigns, and the Prope1iy and improvements thereon, harmless from and against any and all claims, demands, damages, liability, loss, cost or expense (including attorneys' fees, court costs and other reasonable costs of defense) arising out of or relating to any inspections or investigations of the Property or the improvements thereon hereunder, any act, omission, or negligence of Buyer or any of its agents, employees, consultants, or independent contractors in connection therewith, and/or any breach of Buyer's obligations under this Section 10. Buyer's indemnity and defense obligations hereunder shall apply even if Buyer itself is not negligent. Without limiting the generality of the foregoing, Buyer shall pay or otherwise remove any mechanic's, materialman's or other lien recorded against the Property and/or any improvements by

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TECHNISOIL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) any Party providing labor, materials or services at the request of Buyer, or any agent, consultant, or independent contractor of Buyer. The Buyer's obligations under this Subsection 10.4 shall survive the Close of Escrow and any expiration, cancellation or earlier termination of this Agreement, however caused.

11. Seller's Representations and Warranties. Seller hereby represents and warrants to Buyer that the following are true and correct as of the date hereof and, except as otherwise required or permitted elsewhere herein, shall be true and correct as of the Close of Escrow:

11.1 . Seller has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transactions contemplated hereby, and all requisite action (municipal or otherwise) has been taken by Seller in connection with the entering into of this Agreement, the instruments referenced herein, and the consummation of the transactions contemplated hereby. Seller's execution and delivery of this Agreement, and the performance of its obligations hereunder, will not (a) conflict with or violate any statute, law, municipal code, rule, regulation, or policy applicable to Seller or the Property, or (b) violate or result in the breach or the termination of, or otherwise give any contracting party the right to terminate or declare a default under the terms of, any written agreement relating to the Property to which Seller is a party or by which the Prope1ty may be bound. This Agreement and all documents required hereby to be executed by Seller are and shall be valid, legally binding obligations of and enforceable against Seller in accordance with their terms, subject only to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles affecting or limiting the rights of contracting parties generally.

11.2. To the best of Seller's knowledge and belief there are no recorded or unrecorded contracts or agreements relating to the ownership, occupancy, use, operation, maintenance or performance of services on or with respect to the Property, except as disclosed in the Title Report. 11 .3. To the best of Seller's knowledge and belief there are no unrecorded leases, options to purchase, rights of first refusal, or other contracts granting the right to purchase or lease the Property in any way that will be binding on Propetty at Closing.

11.4. To the best of Seller's knowledge and belief there are no Monetary Liens, against, relating to, or otherwise affecting all or any portion of the Property or any interest therein. 11 .5. Seller's Property Documents are and shall be true, correct, and complete in all material respects, and are all the material documents and information in Seller's possession or control relating to the Property.

11.6. To the best of Seller's knowledge and belief: (a) there has been no storage, treatment, use, disposal or release on or under the Property of any Hazardous Substances by Seller or any tenant or previous owner or tenant of the Property; (b) there are no Hazardous Substances present in the soil and/or groundwater on or under the Propetty; (c) there are no pending or threatened lawsuits, governmental investigations or other proceedings relating in any way to the presence, storage, treatment, disposal or release of any Hazardous Substances on or under the Property or any adjoining real property; and (d) there have been no communications or agreements with any federal, state or local governmental agency or any private person or entity (including, without limitation, any prior owner of the Pro petty or any adjoining real prope1ty and any present or former occupant of the Property or any adjoining real property) relating in any way to the presence, storage, treatment, disposal or release of

REAL ESTATE PURCHASE AND SALE AGREEMENT
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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) any Hazardous Substances on or under the Property or any adjoining real property. For purposes of this Agreement:
(i) the term "Hazardous Materials" means any material, substance or waste designated as hazardous, toxic, radioactive, injurious or potentially injurious to human health or the environment, or as a pollutant or contaminant, or words of similar import, under any Environmental Law, including, but not limited to, petroleum and petroleum products, solvents, asbestos, mold, polychlorinated biphenyls, urea formaldehyde, radon gas, radioactive matter, medical waste, and chemicals which may cause cancer or reproductive toxicity, and (ii) the term "Environmental Laws" means any federal, state or local law, statute, regulation or ordinance now or hereafter in force, as amended from time to time, pertaining to materials, substances or wastes which are injurious or potentially injurious to human health or the environment or the release, disposal or transportation of which is otherwise regulated by any agency or the federal , state or any local government with jurisdiction over the Property or any such material, substance or waste removed therefrom, or in any way pertaining to pollution or contamination of the air, soil, surface water or groundwater, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended ( 42 U.S.C. Section 9601 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), the Clean Water Act (33 U.S.C. Section 1251 et seq.), the Safe Drinking Water Act (42 U.S.C. Section 300f et seq.), the Hazardous Materials Transportation Safety and Security Reauthorization Act (49 U.S.C.

Section 5101 et seq.), the Clean Air Act (42 U.S.C. Sections 7401 et seq.), the Toxic Substance Control Act (15 U.S.C. Section 2601 et seq.), the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.

Sections 136 et seq.), the Atomic Energy Act of 1954 (42 U.S.C. Sections 2011 et seq.), the Nuclear Waste Policy Act of 1982 (42 U.S.C. Sections 10101 et seq.), the Hazardous Substance Account Act (California Health and Safety Code Section 25300, et seq.), the Hazardous Waste Control Law (California Health and Safety Code Section 25100, et seq.), the Medical Waste Management Act (California Health and Safety Code Section 117600, et seq.), the Safe Drinking Water and Toxic Enforcement Act of 1986 (California Health and Safety Code Section 25249.5, et seq.), and the PorterCologne Water Quality Control Act (California Water Code Section 13000, et seq.). 11 . 7. To the best of Seller's knowledge and belief Seller and the Property are in full and complete compliance with all federal, state and local laws, ordinances, rules and regulations applicable to the Prope11y, including, without limitation, the California Subdivision Map Act (Cal.

Govt. Code §§66410, et seq.) and all Environmental Laws. 11 .8. There are no known actions, suits, proceedings or investigations pending or, to the best of Seller's knowledge and belief, threatened against or affecting the Property in any court or before or by any governmental department, board, agency, or instrumentality, or any arbitrator.

11.9. There are no known prohibitions of or impediments to the transfer or assignment of the Property, or any portion thereof, and the Property is otherwise fully transferable and assignable.

11.10. Seller has complied, or shall comply prior to the Closing, with all statutes, laws, ordinances, rules, and regulations applicable to Seller and/or the sale of the Property by Seller to Buyer hereunder, and has satisfied, or shall satisfy prior to the Closing, all conditions precedent to such sale of the Propetiy required by law.
1 1.11. To the best of Seller's Knowledge and belief there are no buildings and improvements located on the Prope11y, the Property can be overgrown by vegetation and dry in the summer months.

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY or REDDING/ TECHNJSOIL INDUSTRIAL INC.

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11.12. The Seller hereby discloses to the buyer that, to the best of Seller's knowledge and belief, the only access to the Property is by a gated dirt road to the West of the Prope1ty.

To the fullest extent allowed by law, Seller agrees to indemnify, defend, protect and hold Buyer and its respective officers, directors, shareholders, members, managers, agents, employees, independent contractors (including prime contractors and subcontractors on any construction project relating to the Property), successors and assigns harmless from and against any and all claims, demands, damages, liability, fines, penalties, loss, cost or expense (including attorneys' fees, court costs and other costs of defense) arising out of or relating to any inaccuracy in, or breach or default by Seller of, any of Seller's representations or warranties contained in this Sections 11, above.

Seller hereby acknowledges and agrees that the foregoing representations and warranties are material and being relied upon by Buyer in connection with the execution of this Agreement, and the acquisition of the Property.

All representations, warranties and covenants of Seller contained in this Section 11 shall survive the Close of Escrow and the recording of the Quitclaim Deed in the Official Records.

12. Additional Covenants of Seller Pending the Closing. Beginning on the Effective Date and until the earlier of the Close of Escrow or the termination of this Agreement, Seller shall:

12.1. Maintain the Prope1ty. Maintain (or cause to be maintained) the Property in the same condition existing as of the Effective Date except for the construction or installation of additional structural improvements necessary for the Property.

12.2. Payment of Obligations and Taxes. Pay, as and when the same are due, all payments on any encumbrances, or assessments presently affecting the Property (excluding liens or encumbrances caused by Buyer) and any and all taxes, assessments and levies in respect of the Property through the Closing Date.

12.3. Comply with Laws. Comply in all material respects with all laws, statutes, rules, regulations, ordinances that are applicable to the Propetty, including, but not limited to, Environmental Laws.

12.4. No Encumbrances. Unless required by a Governmental Authority as a condition to the entitlements, Seller shall not grant or convey or enter into any easement, lease, license, permit, agreement or any other legal or beneficial interest in or to the Prope1ty, without the prior written consent of Buyer, which consent shall not be unreasonably withheld, conditioned or delayed. Unless required by a Governmental Authority as a condition to the entitlements, Seller shall not undertake any actions which impair any and all rights of way, easements, grants, appurtenances, encumbrances, liens, covenants, conditions, or privileges and licenses in favor or consisting any pmtion of the Property.

12.5. Notify Buyer of Certain Matters. At all times prior to the Close of Escrow, Seller shall promptly advise Buyer in writing of any material adverse change in the condition of the Property, the occurrence of any event or discovery of any fact which would render any representation or warranty of Seller to Buyer in this Agreement untrue or misleading, and any written notice or other communication from any third person or entity alleging that the consent of such third person or entity may be required in connection with the transaction contemplated by this Agreement.

12.6. Marketing. Seller shall not market the Property for sale, nor enter into any agreements, or accept any offers with respect to the sale of the Property.

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TECHNJSOJL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park)

13. Conditions to Buyer's Obligations. The following are conditions to the Close of Escrow ("Closing Conditions") and the obligation of Buyer to purchase the Prope1ty:

13.l. Buyer shall not have delivered a Buyer's Title Notice to Seller and the Escrow Agent pursuant to and within the time limits provided for in Subsection 8.3, above; Buyer shall not have delivered a written notice of disapproval to Seller and the Escrow Agent pursuant to and within the time limits provided for in Subsection 10.2.

13.2. The Title Company shall have issued or committed to issue to Buyer the Title Policy, to the Buyer as of the Close of Escrow in a manner and substance as defined in Subsection 8.7, above;

13.3. There shall have been no material adverse change in the condition of or title to the Prope1ty prior to the Close of Escrow; and

13.4. On or before the Closing, Seller shall have performed all of its obligations under this Agreement required to be performed on or before the Close of Escrow, and, except as otherwise provided herein, the Seller's representations and warranties hereunder shall be true at and as of the Close of Escrow as if made as of such time.

The foregoing conditions are created for the benefit of the Buyer only. Such conditions may be waived by the Buyer in writing to Seller and the Escrow Agent.

14. Conditions to Seller's Obligations. The following are conditions to the Close of Escrow and the obligation of Seller to sell the Property:

14.1 Buyer shall have delivered the Purchase price, and all other funds, documents and instruments Buyer is required to deliver pursuant to Subsection 6.3, above, to the Escrow Agent within the time limits provided for herein;

14.2 On or before the Closing, Buyer shall have performed all of its obligations under this Agreement required to be performed on or before the Close of Escrow and the Buyer's representations and warranties hereunder shall be true at and as of the Close of Escrow as if made as of such time.

The foregoing condition is created for the benefit of the Seller only. Such condition may be waived by the Seller in writing to Buyer and the Escrow Agent.

15. Failure of Conditions. If any condition specified in Section 13 or 14, above, is not satisfied or waived within the applicable time limit provided, then Buyer, if Buyer is not then in default of any of its obligations under this Agreement, or Seller, if Seller is not then in default of any of its representations, warranties, covenants or agreements under this Agreement, may thereafter terminate the Escrow and this Agreement by giving written notice to the Escrow Agent and the other Party. Upon any such termination, the Deposit shall be returned to Buyer, and neither Party shall have any further liability or obligation hereunder except as otherwise provided herein. Notwithstanding the foregoing, if any condition set forth in Section 12 or 13, above, has failed as a result of a breach or default by Seller or Buyer, the other Party shall have the rights and remedies set forth in Section 18 or 19, below, as the case may be.

16. Damage or Destruction. In the event of any material damage to or destruction of the Property or improvements thereon prior to the Closing, Buyer shall, by written notice to Seller

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TECHNISOJL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) delivered within ten (10) days of receiving written notice from Seller of such event (a "Seller's Damage Notice"), elect to either: (a) terminate this Agreement and the Escrow, in which event the Deposit shall be returned to the Buyer, and neither patty shall have any further liability or obligation under this Agreement, except as otherwise provided herein, or (b) consummate its purchase of the Property pursuant to this Agreement. For purposes of the foregoing, damage to or destruction of the Property or improvements thereon shall be deemed to be material if, but only if, the cost to repair such damage or destruction is reasonably estimated to exceed the sum of AMOUNT ($100,000.00). If Buyer fails to deliver written notice to Seller within such ten (10) day period, Buyer shall be conclusively deemed to have elected to consummate its purchase of the Property. If the damage to or destruction of the Propet1y or improvements is not material, or Buyer elects or is deemed to have elected to consummate its purchase of the Prope11y: (i) there shall be no reduction in the amount of the Purchase Price as a result of the damage to or destruction of the Property or improvements; and (ii) Seller shall at the Closing (A) pay to Buyer all insurance proceeds, if any, previously received by Seller with respect to such damage or destruction (less any portion thereof expended by Seller to repair, mitigate, or avoid such damage or destruction, and/or to secure the Property), and (B) assign to Buyer all of Seller's rights, if any, to all additional insurance proceeds, if any, payable by reason of such damage or destruction. The Closing Date shall be extended if and to the extent necessary to provide Buyer with the full ten (10) day period to make its election hereunder. Any extension of the Closing Date pursuant to the preceding sentence shall be in addition to all other extension rights provided for herein. Buyer understands that Seller does not maintain fire or other insurance covering damage to the improvements on the Property.

The parties agree that this Section shall apply in the event of any damage to or destruction of the Property or improvements thereon in lieu of the Uniform Vendor and Purchaser Risk Act, and hereby waive the provisions of California Civil Code '1662 with respect to any damage to or destruction of the Property or improvements thereon prior to the Closing.

17. Property Taxes. Current real property taxes not yet delinquent relating to the Property, if any, shall be prorated between Seller and Buyer as of the Closing Date on the basis of a thirty-day month, and, to the extent of information then available, such prorations shall be made at the Closing.

Such prorations shall be adjusted, if necessary, and completed after the Closing as soon as final information becomes available.

18. Closing and Other Costs. Buyer and Seller shall equally pay fifty percent (50%) of the following costs incurred in connection with this transaction: (a) the cost of recording the Quitclaim Deed; and (b) the documentary transfer tax, if any, imposed in connection with the recording of the Quitclaim Deed. Seller shall pay for customary ALTA standard coverage title costs and the cost of the Commercial Natural Hazard Disclosure Report provided for in Section 8(a), above. Buyer shall pay for any additional title costs including, without limitation, costs for any ALTA Extended Coverage, any survey required by the title company and/or desired by Buyer and any endorsements. Buyer and Seller shall equally share the cost of escrow and all other closing expenses in the normal and customary fashion for transactions in Shasta County, California.

19. AS IS SALE; Release
19 .1 Buyer acknowledges and agrees that, prior to the Close of Escrow, Buyer shall have had a full and complete opportunity to inspect and investigate each and every aspect of the Property and the improvements thereon, either independently or through agents of Buyer's choosing.

Buyer further acknowledges and agrees that, except as expressly set forth in Section 11, above,

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TECHNISOIL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) Seller makes no representations or warranties, express or implied, regarding the Seller, the Property, or the improvements thereon, including, without limitation: (a) any warranty of merchantability or fitness for a paiiicular purpose, (b) the compliance of the Property and/or any improvements thereon, if any, with any applicable codes, laws, regulations, statutes or ordinances, including any Environmental Laws, or with any covenants, conditions and restrictions of any governmental or quasi-governmental entity or of any other person or entity; ( c) the existence of soil instability, past soil repairs, soil additions or conditions of soil fill or susceptibility to landslides; (d) the quality and nature of any groundwater; (e) the ownership, existence, status, quality, or nature of any water rights that may be appurtenant to the Property; (f) the ownership, existence, status, viability, quality or nature of any mineral rights that may be appurtenant to the Property; (g) the agricultural productivity of the Propetiy; (g) the nature, types or quality of the soils on the Property; (h) the sufficiency of any undershoring; (i) the sufficiency of any drainage; U) the existence or non-existence of underground storage tanks or pipelines; (k) the presence of any Hazardous Materials (as defined below) on, under or about the Prope1iy, or any other adjoining or neighboring prope11y, or any improvements thereon; (I) the availability, quality, nature, adequacy and physical condition of public utilities and services for the Property; (m) any other matter affecting the stability or integrity of the Prope1ty; (n) the potential for further development of the Property; (o) the existence of vested land use, zoning or building entitlements affecting the Property; (p) the zoning or other legal status of the Property or any other public or private restrictions on use of the Prope1iy or the ability to subdivide the Property; (q) the physical condition of the Property, any improvements on the Property, (r) the condition of title to the Property, any improvements on the Property; (s) the existence or status of any tenancies affecting the Property; (t) the existence or status of any permits or approvals required to use or occupy the Property, or any portion thereof; and/or (u) the economics of the operation of the Property. Buyer acknowledges and agrees that subject to the representations and warranties of Seller contained in Section 11, above, the Prope1ty is being sold and accepted by Buyer on an "AS-IS, WHERE IS, WITH ALL FAULTS" basis, and that, effective as of the Close of Escrow, Buyer assumes all responsibility for all faults and conditions then existing relating to the Propetiy, or the improvements thereon, specifically including, but not limited to, all faults and conditions relating to the matters described in this Section 19.1, and/or as disclosed or described in this Agreement, and/or in any of the documents or instruments described, provided for, referred to in, or delivered to Buyer.

19.2 Effective from and after the Closing, Buyer hereby waives, releases, exonerates, covenants not to sue, and forever discharges Seller, Seller's elected officials, and their employees, agents, representatives, successors and assigns, to the maximum extent permitted by law, of and from any and all claims, demands, actions, causes of action, rights, liabilities, damages, penalties, fines, losses, costs, expenses, or compensation whatsoever, direct or indirect, known or unknown, foreseen or unforeseen (collectively, "Claims"), that it now has or that may arise in the future because of or in any way growing out of, relating to, or connected with this Agreement, any document or instrument delivered pursuant to this Agreement, the Property, any improvements on the Prope1iy, including but not limited to, any Claims arising out of or relating to any Environmental Laws, the presence of Hazardous Materials in, on, under or about the Property, or any improvements thereon, or any other physical or environmental condition of the Property, or any improvements thereon, but excluding Seller's indemnity and defense obligations under Section 29, below, and matters arising from Seller's fraud or intentional misrepresentation. BUYER EXPRESSLY WAIVES THE BENEFITS OF SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES AS FOLLOWS: "A

GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR

RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT

THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN TO HIM OR HER, WOULD

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TECHNISOIL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park)

HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY."
Buyer has initialed this Subsection 19 .2 to further indicate Buyer's awareness of and acceptance of the general release of all known and unknown Claims as provided for above. The provisions of this Subsection 19 .2 shall be effective upon and shall survive the Close of Escrow.

Buyer: 7 ~

20. LIQUIDATED DAMAGES ON BUYER'S DEFAULT. BUYER AND SELLER

HEREBY ACKNOWLEDGE AND AGREE THAT, IF BUYER FAILS TO COMPLETE THE

PURCHASE OF THE PROPERTY AS A RESULT OF A DEFAULT BY BUYER UNDER THIS AGREEMENT AND BUYER FAILS TO CURE SUCH DEFAULT WITHIN FIVE (5) DAYS

FOLLOWING RECEIPT OF WRITTEN NOTICE OF SUCH DEFAULT FROM SELLER TO BUYER ("BUYER DEFAULT"), SELLER WILL SUFFER DAMAGES IN AN AMOUNT WHICH

WILL, DUE TO THE SPECIAL NATURE OF THE TRANSACTION CONTEMPLATED BY THIS

AGREEMENT AND THE SPECIAL NATURE OF THE NEGOTIATIONS WHICH PRECEDED THIS AGREEMENT, BE IMPRACTICAL OR EXTREMELY DIFFICULT TO ASCERTAIN. IN

ADDITION, BUYER WISHES TO HAVE A LIMITATION PLACED UPON THE POTENTIAL

LIABILITY OF BUYER TO SELLER IN THE EVENT OF A BUYER DEFAULT, AND WISHES TO

INDUCESELLERTOWAIVEOTHERREMEDIESWHICHSELLERMAYHAVEINTHEEVENT OF SUCH A BUYER DEFAULT. BUYER AND SELLER, AFTER DUE NEGOTIATION AND

GIVING DUE CONSIDERATION TO THE ACTUAL DAMAGES SELLER COULD SUFFER IN

THE EVENT OF A BUYER DEFAULT, HEREBY ACKNOWLEDGE AND AGREE THAT THE

AMOUNT OF THE DEPOSIT REPRESENTS A REASONABLE ESTIMATE OF THE DAMAGES SELLER WILL SUSTAIN IN THE EVENT OF A BUYER DEFAULT.

BUYER AND SELLER HEREBY AGREE THAT IF BUYER FAILS TO PURCHASE THE

PROPERTY AS A RESULT OF A DEFAULT BY BUYER HEREUNDER, SELLER SHALL BE

ENTITLED TO TERMINATE THE AGREEMENT UPON WRITTEN NOTICE TO BUYER AND

THE ESCROW AGENT, AND THE ESCROW AGENT SHALL PAY TO SELLER THE DEPOSIT

AND ANY ADDITIONAL DEPOSITS (AND ALL ACCRUED INTEREST THEREON) AS LIQUIDATED DAMAGES. THE PAYMENT OF SUCH FUNDS TO SELLER IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO SECTIONS 1671, 1676 AND 1677 OF THE CALIFORNIA CIVIL CODE, AND SHALL NOT BE DEEMED TO CONSTITUTE A FORFEITURE OR PENALTY WITHIN THE MEANING OF SECTION 3275 OR SECTION 3369 OF THE CALIFORNIA CIVIL CODE, OR ANY SIMILAR PROVISIONS. THE

LIQUIDATED DAMAGES PROVIDED FOR HEREUNDER SHALL BE SELLER'S SOLE AND

EXCLUSIVE REMEDY (WHETHER AT LAW OR IN EQUITY) IN THE EVENT BUYER FAILS

TO PURCHASE THE PROPERTY AS A RESULT OF A BUYER DEFAULT, ALL OTHER CLAIMS

TO DAMAGES OR OTHER REMEDIES, INCLUDING BUT NOT LIMITED TO SPECIFIC PERFORMANCE, BEING HEREIN EXPRESSLY WAIVED BY SELLER. FOLLOWING

TERMINATION OF THIS AGREEMENT, CANCELLATION OF THE ESCROW AND PAYMENT

OF THE DEPOSIT AND ADDITIONAL DEPOSITS (AND ALL ACCRUED INTEREST

THEREON) TO SELLER AS LIQUIDATED DAMAGES PURSUANT TO THIS SECTION, ALL

OF THE RIGHTS AND OBLIGATIONS OF BUYER AND SELLER UNDER THIS AGREEMENT

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TECI-INISOIL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park)

SHALL BE TERMINATED, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED ELSEWHERE HEREIN.

THE PARTIES ACKNOWLEDGE AND AGREE THAT THIS LIQUIDATED DAMAGES CLAUSE

SHALL NOT APPLY TO BUYER'S INDEMNITY OBLIGATIONS AND DEFENSE OBLIGATIONS UNDER SUBSECTION 10.4 AND SECTION 23

OF THIS AGREEMENT OR APPLY TO OR LIMIT SELLER'S RIGHT TO RECOVER ATTORNEY'S FEES FROM BUYER PURSUANT TO SUBSECTION 10.4, SECTION 28, OF THIS AGREEMENT.

BUYERAND SELLERACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE

PROVISIONS OF THIS SECTION AND BY THEIR INITIALS IMMEDIATELY BELOW, AGREE TO BE BOUND BY ITS TERMS. .
. C)Q~ .~W--
"SelldJ" "Buyer"

DEFAULT BY SELLER IF SELLER DEFAULTS IN SELLER'S OBLIGATION TO SELL

AND TRANSFER THE PROPERTY TO BUYER AT THE CLOSE OF ESCROW, AND SELLER FAILS TO CURE SUCH DEFAULT WITHIN FIVE (5) DAYS FOLLOWING RECEIPT OF

WRITTEN NOTICE OF SUCH DEFAULT FROM BUYER TO SELLER, BUYER SHALL HAVE THE RIGHT, AT BUYER'S OPTION, TO EITHER: (A) PURSUE SPECIFIC PERFORMANCE OF

THIS AGREEMENT AND THE RECOVERY OF BUYER'S REASONABLE ATTORNEYS' FEES PURSUANT TO SECTION 28, BELOW, IN THE EVENT BUYER IS THE PREVAILING PARTY (BUT EXCLUDING ANY DAMAGES OR OTHER MONETARY COMPENSATION

WHATSOEVER, INCLUDING BUT NOT LIMITED TO, ANY INCIDENTAL, CONSEQUENTIAL, DELAY OR OTHER DAMAGES OR COMPENSATION); OR (B) TERMINATE THIS

AGREEMENT AND THE ESCROW AND RECEIVE A RETURN OF THE DEPOSIT (AND ALL ACCRUED INTEREST THEREON). BUYER SHALL BE DEEMED TO HAVE ELECTED TO

TERMINATE THIS AGREEMENT AND RECEIVE A RETURN OF THE DEPOSIT PURSUANT

TO CLAUSE (B) ABOVE UNLESS BUYER MAKES AN AFFIRMATIVE ELECTION BY WRITTEN NOTICE TO SELLER AND ESCROW AGENT WITHIN FIFTEEN (15) DAYS AFTER EXPIRATION OF THE FIVE (5) DAY PERIOD FOR SELLER'S CURE PROVIDED ABOVE TO SEEK SPECIFIC PERFORMANCE AS PERMITTED IN CLAUSE (A) ABOVE; PROVIDED,

HOWEVER, THAT IF BUYER ELECTS TO SEEK SPECIFIC PERFORMANCE, BUYER MUST FILE AND SERVE A COMPLAINT SEEKING THE SAME WITHIN SIXTY (60) DAYS AFTER THE CLOSING DATE. BUYER'S FAILURE TO ELECT WITHIN FIFTEEN (15) DAYS AFTER EXPIRATION OF THE FIVE (5) DAY PERIOD FOR SELLER'S CURE PROVIDED ABOVE TO

SEEK SPECIFIC PERFORMANCE AS PERMITTED IN CLAUSE (A) ABOVE AND/OR TO FILE AND SERVE A SPECIFIC PERFORMANCE ACTION WITHIN THE SIXTY (60) DAY PERIOD

PROVIDED HEREIN SHALL BE DEEMED AN IRREVOCABLE WAIVER OF THE RIGHT TO FILE SUCH AN ACTION AND OF SUCH REMEDY. IT IS UNDERSTOOD AND AGREED THAT (I) THE REMEDIES OF BUYER SET FORTH IN THIS SECTION SHALL BE BUYER'S SOLE

AND EXCLUSIVE REMEDIES IN THE EVENT OF A SELLER DEFAULT, (II) BUYER SHALL

NOT BE ENTITLED TO SEEK OR RECOVER MONETARY DAMAGES OR OTHER

COMPENSATION FROM SELLER UNDER ANY CIRCUMSTANCES, AND (III) ALL CLAIMS

TO DAMAGES AND ALL OTHER REMEDIES NOT SET FORTH IN THIS SECTION ARE HEREBY EXPRESSLY WAIVED BY BUYER.

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TECHNISOIL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park)

BUYER AND SELLER ACKNOWLEDGE THAT THEY HAVE READ AND

UNDERSTAND THE PROVISIONS OF THIS SECTION AND BY THEIR INITIALS IMMEDIATELY BELOW, AGREE TO BE BOUND BY ITS TERMS.
"SELLER·'~ "BUYER": lk~
y

21. Possession. Possession of the Property shall be delivered to Buyer at the Closing, unless otherwise agreed upon in writing between Buyer and Seller.

22. No obligation to repair, Correct Deficiencies, Improve or Clean-up Property.

Seller shall have no obligation to repair, correct any deficiencies in, or make any improvements to the Property or any improvements thereon, or to remove any trash or debris from the Property, prior to the Close of Escrow.

23. Broker's Fees. Seller and Buyer represent and warrant to each other that they have dealt with no broker or finder in connection with any transaction contemplated by this Agreement except Buyer has engaged a real estate broker Ken Murray (CalRE#: 00581789) ("Buyer's Broker").

Seller shall be obligated to pay (without contribution of any kind from Buyer) to Buyer's Broker a commission of 3 percent. Seller and Buyer each agree to indemnify, defend, and hold harmless one another against any loss, liability, damage, cost, claim, or expense incurred by reason of any brokerage, commission, or finder's fee alleged to be payable because of any act, omission, or statement of the indemnifying pa1iy. The parties' obligations hereunder shall survive the Close of Escrow and recording of the Quitclaim Deed in the Official Records, or any earlier cancellation or termination of this Agreement.

24. No Party Deemed Drafter. In the event of a dispute between any of the pa1ties hereto over the meaning of this Agreement, no party shall be deemed to have been the drafter hereof, and the principle of law that contracts are construed against the drafter shall not apply.

25. Further Assurances. Seller and Buyer agree that, from time to time, at or after the Close of Escrow, each of them will execute and deliver such further documents and instruments of conveyance and transfer, and take such other action as may be reasonably necessary to carry out the purpose and intent of this Agreement.

26. Notices. Any notice, request, waiver, consent, approval or other communication which is required or permitted hereunder shall be in writing and shall be deemed given only if delivered personally or sent by registered or certified mail, postage prepaid, return receipt requested, as follows:
(a) if to Seller, to City of Redding, Attn: Barry Tippin, City Manager, 777 Cypress Avenue, Redding, CA 96001, with a required copy to Christian M. Curtis, City Attorney, City of Redding, 777 Cypress Avenue, Redding, CA 96001; (b) if to Buyer, to Technisoil Industrial, Inc., Attn: Sean Weaver, 5660 Westside Rd, Redding, CA 96001; or (c) to such other address as the addressee may have specified in a notice duly given to the sender as provided herein. Such notice, request, demand, waiver, consent, approval or other communication wi II be deemed to have been given as of the date so personally delivered, or two (2) days afte~ it is deposited in the mail.

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TEC!-!N!SO!L INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park)

27. Assignment. Buyer may not assign its rights and obligations under this Agreement without the prior written consent of the Seller which may be granted or withheld by Seller in its sole and absolute discretion. Any assignee of the Buyer consented to by Seller shall be required to execute and deliver to Seller, prior to the date any such assignment becomes effective, a separate written agreement, approved by Seller and its legal counsel, pursuant to which the assignee (i) expressly assumes all of the Buyer's obligations as Buyer under this Agreement, and (ii) agrees to the release, limitations on remedies, and other provisions herein for the benefit of Seller. No permitted assignment by the Buyer shall relieve Buyer of any of its obligations under this Agreement

28. Attorney's Fees. In the event of any legal action, arbitration or other proceeding arising out of this Agreement, the prevailing party shall be entitled to its reasonable attorney's fees and costs in addition to any other relief to which it may be entitled.

29. Survival. All of Seller's and Buyer's covenants, agreements, representations and warranties contained in this Agreement shall survive the Close of Escrow and recordation of the Quitclaim Deed in the Official Records of Shasta County, California.

30. Entire Agreement. This Agreement, and all documents and instruments referred to herein, contain the entire agreement of the parties hereto with respect to the matters covered hereby and supersede all prior arrangements and understandings between the parties, and no other agreement, statement or promise made by either Party hereto with respect to such matters which is not contained herein shall be binding or valid. No amendment, alteration or modification of this Agreement shall be valid unless in each instance such amendment, alteration or modification is expressed in a written instrument duly executed by the parties.

31. Successors and Assigns. The terms and conditions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their personal and legal representatives, beneficiaries, heirs, successors in interest and assigns.

32. Partial Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

33. Waivers. No waiver of any breach of this Agreement Shall be valid unless in writing, nor shall any such waiver be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or provision herein contained.

34. Relationship of Parties. This Agreement is a purchase and sale agreement only. The parties hereto, each of whom is represented by separate legal counsel, do not intend by this Agreement to create any paitnership, joint venture, or principal and agent relationship (and nothing herein shall be construed to create any such relationship).

35. Counterparts. This Agreement must be manually signed and initialed by Seller and Buyer (and may not be electronically or digitally signed and initialed by the parties). This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY 01' REDDING/ TECHNISOIL INDUSTRIAL INC.

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) execution pages of counterparts may be attached to any one copy of the Agreement to form a single, complete document. The pm1ies agree that the transmission of a signed copy of this Agreement via e-mail shall constitute execution and delivery hereof, and the parties agree to deliver original ink signed counterparts as soon as reasonably possible thereafter.

36. Incorporation by Reference. All recitals, exhibits and schedules to this Agreement are incorporated herein by this reference.

37. Governing Law. Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California (without giving effect to the conflict of law provisions of such State). Any proceeding brought by either Party against the other or any dispute arising out of this Agreement or any matter related thereto must be brought in the coutts of the State of California in Shasta County. Seller and Buyer hereby (a) accept and consent to the exclusive jurisdiction of the coutts referred to in the preceding sentence, (b) waive any objection to the jurisdiction of the above-referenced courts, and ( c) waive any objections to venue in the above-referenced courts, whether based upon forum non conveniens or any other grounds.

38. Time. Time is of the essence with respect to each and every term and condition of this Agreement.

39. Days and Holidays. All references in this Agreement to the word "days," whether for notices, schedules, performance, or other miscellaneous time limits, shall at all times mean calendar days, unless specifically referenced as "business" days. Business days are Monday through Friday, except legal holidays. In the event any date for performance of any obligation or the giving of any notice pursuant to this Agreement occurs on a California state or federal holiday or on a Saturday or Sunday, then the next business day shall be deemed the applicable date for performance or notice.

40. Force Majeure. Any prevention or delay in performance due to labor disputes, acts of God, fire or other casualty, acts of terrorism or war, pandemic (including, but not limited to, the current COVID-19 pandemic), governmental actions or restrictions ( other than actions or restrictions imposed or taken by Seller), inability to obtain services, labor, or materials (including, but not limited to, the services of the Escrow Agent, Title Company, or Shasta County Recorder as a result of office closures or otherwise), or other causes (except financial) beyond the reasonable control of the Party obligated to perform (each an event of "Force Majeure") shall excuse the performance by that Pa11y for a period equal to the prevention or delay. Any delay in Seller's delivery of the Property Documents to Buyer caused by Force Majeure shall automatically extend the Due Diligence Period and the Closing Date by a like number of days.

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY OF REDDING/ TECI-INISOIL INDUSTRIAL INC.

Signature Page to Follow
Page I 7
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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) BUYER:

TECHNISOIL INDUSTRIAL INC.,
A Delaware corporation
By:

Its: f, ,(,<,'.}
Dated: '-f f\ ? f 7.-)
I I
ATTEST: A () -~
--'~ '\(;lA )!..LL-{1Jf ){ri,,/\
SRA:RLENE TIPTON, City Clerk

REAL ESTATE PURCHASE AND SALE AGREEMENT
CITY or REDDING/ TECHNISOIL INDUSTRIAL INC.

SELLER:

CITY OF REDDING,
amunict •~ ~
By: (j /
Its:
s .,). 7_,Cj Dated: _____________ _
~ -d- _
- Gretchen Stuhr
Assistant City Attorney

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Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) Exhibit A

LEGAL DESCRIPTION
All that real property situate within a portion of the Northeast one-quarter of Section 26, Township 31 North, Range 4 West, Mount Diablo Meridian, City of Redding, County of Shasta, State of California being more particularly described as follows:

Parcel 12 as shown on the Stillwater Business Park Parcel Map PM 5-07 & PD 4-07 filed on May 8, 2008 in Book 37 of Parcel Maps at Page 93, Shasta County Records.

Containing 25.41 acres more or less.

APN 054-260-004
Packet Pg. 62
Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) RECORDING REQUESTED BY:

City of Redding

WHEN RECORDED MAIL DOCUMENT
AND TAX STATEMENT TO:

City Clerk
City of Redding
777 Cypress Avenue
Redding, CA 96001
A.P.N. 054-260-004
Exhibit B

THE AREA ABOVE IS RESERVED FOR RECORDER'S USE

QUITCLAIM DEED
THE UNDERSIGNED GRANTOR DECLARES:

Documentary Transfer Tax -
City of Redding EXEMPT - Rev. & Tax. C.A. ' 11922 (Transfer Involving Government Entity) NO FEE - CITY BUSINESS - Gov. Code' 6103
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, CITY OF REDDING, a Municipal Corporation
HEREBY REMISE, RELEASE AND FOREVER QUITCLAIM to TECHNISOIL INDUSTRIAL INC.

The following described real property in the CITY OF REDDING, County of Shasta, State of California:

Parcel 12 as shown on the Stillwater Business Park Parcel Map PM 5-07 & PD 4-07 filed on May 8, 2008 in Book 37 of Parcel Maps at Page 93, Shasta County Records.

DATED: -------, 2025
ATTEST:

SHARLENE TIPTON, CITY CLERK
BY:

GRANTOR:

CITY OF REDDING

JACK MUNNS, MAYOR

FORM APPROVED

CHRISTIAN CURTIS, CITY ATTORNEY
Packet Pg. 63
Attachment: Purchase and Sale Agreement (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Approve the Real Estate Purchase and Sale Agreement (PSA) with Technisoil Industrial Inc., for 25.41 acres of City of Redding-owned property located at 6155 Venture Parkway, Stillwater Business Park Parcel 12 (Assessor’s Parcel Number 054-260-004), for the appraised value; and
(2) Authorize the Mayor to sign the PSA and other documents needed to complete the sale and transfer of the property.

Fiscal Impact
The sale of the property is for the appraised value, subject to adjustments for closing costs, escrow fees, and broker’s fee. The net proceeds will be deposited into the General Fund.

Alternative Action
The City Council (Council) could alter the terms of the Purchase and Sale Agreement or choose not to sell the property at this time.

Background/ Analysis
Technisoil Industrial Inc. (Technisoil), has submitted an offer to purchase a City of Redding (City) owned property located at 6155 Venture Parkway (Assessor’s Parcel Number 054-260- 004), also known as Stillwater Business Park Parcel 12 (25.41 acres) as depicted in the attached location map. Technisoil is planning to build a manufacturing warehouse and global headquarters to house their new pavement technology operations.

The listed property is part of the Stillwater Business Park planned development. The basic terms and conditions of the agreement include:

MEETING DATE: May 6, 2025
ITEM NO. 4.1(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.1(b)--Purchase and Sale Agreement with Technisoil Industrial Inc.

Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 64
Attachment: Staff Report May 6, 2025 (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park) Report to Redding City Council May 5, 2025
Re: 4.1(b)--Purchase and Sale agreement with Technisoil Industrial Inc. Page 2 • Refundable deposit of $10,000;
• Price to be based off current appraisal;
• Due diligence period of 60 days;
• Closing shall occur on or before 30 days following the due diligence period; • Split escrow fees; and
• The City will pay a broker’s fee of three percent on the purchase price.

The Property was declared exempt surplus property on October 6, 2020, by Resolution 2020- 119.

Environmental Review
The sale of City-owned property presents no significant impact on the environment and is therefore categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (Surplus Government Property Sales).

Council Priority/ City Manager Goals
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
^Location Map
^Purchase and Sale Agreement
Packet Pg. 65
Attachment: Staff Report May 6, 2025 (4.1(b)--First Amendment to the PSA with Technisoil Industrial Inc; Stillwater Business Park)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions with the Tribal Council of the Redding Rancheria:
(1) Authorize the Mayor to sign the Master Service Agreement with the Tribal Council of the Redding Rancheria;
(2) Authorize the Mayor to sign the Distribution Utility Services Agreement (DUSA) with the Redding Rancheria Utility Corporation (RRUCO); and
(3) Make a determination this action is exempt from review under the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3)- Common Sense Exemption.

Fiscal Impact
The Master Service Agreement (MSA) with the Tribal Council of the Redding Rancheria (Redding Rancheria) provides fiscal contributions to the City of Redding (City), as follows:
(1) A one-time payment to the General Fund in the amount of $3,250,000 for the Health Village project. This amount is the equivalent to the City’s non-utility impact fees for comparable development. The City Council (Council) will have flexibility in how the funding is used per the terms of the agreement;
(2) An annual $100,000 service impact offset payment, paid quarterly in $25,000 installments to the General Fund. Last fiscal year the tribe paid $126,824, which had been increased by inflation from the prior contract terms.
(3) A one-time payment of $601,000 to reimburse the City for water and wastewater connection impact fees; and
(4) Standard Rates will be charged for the City’s Water, Wastewater and Solid Waste Utilities.

The Distribution Utility Services Agreement (DUSA) provides that the Redding Rancheria, through Redding Rancheria Utility Corporation (RRUCO), will pay standard City utility rates for electric service, in accordance with applicable Council Policy and the Redding Municipal Code.

MEETING DATE: October 7, 2025
ITEM NO. 4.1(c)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4.1(c)--Approval of the Master Service Agreement and Distribution Utility Services Agreement with the Redding Rancheria
Steve Bade, Interim City
Manager
Packet Pg. 66
Report to Redding City Council October 2, 2025
Re: 4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Agreement with the Redding Ranche Page 2
Alternative Action
The Council could choose not to approve one or both agreements and provide alternate direction to staff.

Background/Analysis
On February 4, 2025, Council approved and issued a “Will Serve” letter to the Redding Rancheria and RRUCO agreeing to provide utility service to the new Health Village, currently under construction. The Health Village will be a benefit to Tribal members and the community at large. The City’s Electric Utility and Public Works Departments have reviewed the project’s demands and have determined that the City has the capacity to serve. The utility service is subject to execution of agreements which are the subject of this staff report. The two agreements are summarized below:

Master Service Agreement (MSA)
The MSA establishes a 25-year framework for the provision of City water, wastewater, and solid waste services to the Redding Rancheria Tribal Lands. Key elements include:
• Maintaining compatibility with state and federal regulatory requirements, including Clean Water Act discharge standards.
• Providing indemnification, insurance, and security requirements to protect City operations.
• An annual $100,000 payment by the Redding Rancheria to offset City service impacts.

This obligation ceases if the Redding Rancheria relocates the Win-River Casino and Hotel to the Strawberry Fields property.

Distribution Utility Services Agreement (DUSA)
The DUSA, also structured as a 25-year agreement, governs electric service provision between the City’s Electric Utility and RRUCO. Key elements include:
• Service delivery at two master meter interconnection points identified in the agreement. • Monthly metering, billing, and reporting by the City, with responsibility for sub-meter operations and collections retained by RRUCO.
• City provision of service restoration and construction services upon request, billed at standard labor and material rates.
• Requirements for RRUCO to maintain its distribution facilities in accordance with City and industry standards, including compliance with the National Electric Code and California Public Utility Commission General Orders.
• Standard City fees, late payment penalties, and collection procedures applying to the Rancheria’s utility accounts.

Together, these two agreements ensure that the Redding Rancheria will continue to receive reliable municipal services in a manner consistent with City policy, while providing equitable financial contributions to offset service impacts.

Packet Pg. 67
Report to Redding City Council October 2, 2025
Re: 4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Agreement with the Redding Ranche Page 3
Environmental Review
Staff has reviewed the action and determined it is exempt from review under the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3) – Common Sense Exemption. CEQA applies only to projects which have the potential for causing a significant effect on the environment. The existing Master Service Agreement will be replaced with a new Master Service Agreement (attached) that expands existing utility services (water and waste water) and adds new solid waste service to the Redding Rancheria’s facilities, including the Redding Rancheria Tribal Health Village. It can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment.

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

Attachments
^020525 Will Serve Letter - Redding Rancheria Health Village 020425 Staff Report - Will Serve Letter
REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement COR and Redding Rancheria Master Service Agreement
Packet Pg. 68
February 5, 2025
Tracy Edwards, Chief Executive Officer
Redding Rancheria
2000 Redding Rancheria Road
Redding, CA 96001
Re: Will Serve Letter for Electric, Water, and Wastewater Services for the Tribal Health Village Dear Ms. Edwards,
This letter serves to confirm the City of Redding’s (City) commitment to providing electric, water, and wastewater services to Redding Rancheria for the soon-to-be-constructed Tribal Health Village “project,” located on Redding Rancheria Road.

After reviewing the project scope and proposed development, the City of Redding Electric, Water, and Wastewater Utility Departments have determined that services can be made available to the site for the project. The City will provide the necessary services upon completion of all required application processes, agreements, and compliance with appropriate standards.

1. Electric Service
The City of Redding Electric Utility will be able to provide electrical service to the project, subject to the usual requirements and procedures for electrical service connection. The existing Distribution Utility Services Agreement between the City and the Redding Rancheria Utility Corporation will be amended to reflect the additional service location and other necessary modifications.

2. Water Service
The City of Redding Water Utility will be able to provide water service to the project, subject to the usual requirements and procedures for water service connection. The existing Master Services Agreement, including any attachments/amendments between the City and the Tribal Council of the Redding Rancheria, will be amended to reflect the additional service location and other necessary modifications.

3. Wastewater Service
The City of Redding Wastewater Utility will be able to provide wastewater services to the project, subject to the usual requirements and procedures for wastewater service connection in compliance with the City’s wastewater treatment and discharge requirements. The existing Master Services Agreement, including any attachments/amendments between the City and the Tribal Council of the Redding Rancheria, will be amended to reflect the additional service location and other necessary modifications.

Please note that this Will Serve letter is based on the current plans and conditions, as presented. Should the scope of the project change, or should any issues arise during the review process, the City may need to revisit and modify the service provisions.

Packet Pg. 69
Attachment: ^020525 Will Serve Letter - Redding Rancheria Health Village (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service City of Redding February 5, 2025
Will Serve Letter for Redding Rancheria’s Tribal Health Village Page 2 of 2 The City of Redding is committed to assisting the Redding Rancheria throughout the process to ensure the successful provision of services for the construction and operation of the Tribal Health Village. We look forward to working with you to complete this important project.

If you have any questions or require further information, please contact my office at 530-225-4060 or via email at [email protected].

Sincerely,
Barry Tippin
City Manager
City of Redding
cc: Nicholas Zettel, Redding Electric Utility Director, City of Redding Michael Webb, Public Works Director, City of Redding
Packet Pg. 70
Attachment: ^020525 Will Serve Letter - Redding Rancheria Health Village (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the City Manager to sign a City of Redding utility “will serve” letter to the Redding Rancheria for utility services to its planned Health Village adjacent to the current Redding Rancheria Tribal offices along Clear Creek.

Fiscal Impact
There is no fiscal impact with the issuance of a “will serve” letter.

Alternative Action
The City Council could choose to not issue a “will serve” letter for the proposed project or provide alternate direction to staff.

Background/Analysis
The Redding Rancheria is proposing construction of a Health Village across Clear Creek from its Tribal Offices. The Health Village will be a tremendous benefit to Tribal members and the community. The City’s Electric Utility and Public Works Departments have reviewed the project’s demands and have determined that the City has the capacity to serve it. The utility service is subject to execution of agreements which will be negotiated and brought back to the Council for consideration.

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

MEETING DATE: February 4, 2025
ITEM NO. 4.1(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4.1(a)--Authorize the City Manager to Issue and Sign a "Will Serve" Letter to the Redding Rancheria for Utility Services to the Health Village Barry Tippin, City Manager
Packet Pg. 71
Attachment: 020425 Staff Report - Will Serve Letter (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Agreement with the Report to Redding City Council January 30, 2025
Re: 4.1(a)--Authorize the City Manager to Issue and Sign a Will Serve" Letter to the Redding Rancheria Page 2
Council Priority/City Manager Goals
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Attachments
^Redding Rancheria Tribal Health Village Will Serve Letter Packet Pg. 72
Attachment: 020425 Staff Report - Will Serve Letter (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Agreement with the Packet Pg. 73
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 74
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 75
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 76
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 77
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 78
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 79
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 80
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 81
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 82
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 83
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 84
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 85
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 86
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 87
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 88
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 89
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 90
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 91
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 92
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 93
Attachment: REU Agreement with Redding Rancheria Utility Distribution Utility Services Agreement (4.1(c)--Approve and Authorize the Mayor to Packet Pg. 94
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 95
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 96
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 97
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 98
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 99
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 100
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 101
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 102
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 103
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 104
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 105
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 106
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 107
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 108
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 109
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 110
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 111
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 112
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 113
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 114
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 115
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 116
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service Packet Pg. 117
Attachment: COR and Redding Rancheria Master Service Agreement (4.1(c)--Approve and Authorize the Mayor to Sign the Master Service

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions:
(1) Adopt Resolution approving the 12th Amendment to City Budget Resolution No. 2025- 049 re-appropriating the state grant funds in the amount of $0; (2) Find that appropriating grant funding is not considered a project under the California Environmental Quality Act. Each project has been individually evaluated for CEQA compliance; and
(3) Find that appropriating grant funding is exempt under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3) and each of the projects has been reviewed and is exempt from further federal environmental review requirements.

Fiscal Impact
The City of Redding’s (City) Housing Division (Housing) received four grants from the California Department of Housing and Community Development (HCD) that were appropriated in the Housing Division’s current biennial budget cycle. The Community Development Block Grant (CDBG) – Disaster Recovery (DR) Mitigation (MIT), Planning Public Service (PPS) and Resilient Infrastructure Program (RIP) grants received are detailed as follows:
• CDBG-DR MIT PPS – Risk Assessment ($150,000)
• CDBG-DR MIT PPS – Storm Drain Master Plan Update ($1,000,000) • CDBG-DR MIT RIP – Wildfire Mitigation ($357,149.53)
• CDBG-DR MIT PPS – Community Outreach ($1,500,000)
The requested resolution would move appropriations for grant revenues and expenses into various other City departments that will complete grant funded activities. A portion of the administrative funds for each grant will remain in Housing to carry out grant monitoring, billing, and oversight functions.

MEETING DATE: October 7, 2025
ITEM NO. 4.2(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4.2(a)--Adopt Resolution Accepting and Appropriating CDBG Disaster Recovery Grants
Steve Bade, Interim City
Manager
Packet Pg. 118
Report to Redding City Council October 2, 2025
Re: 4.2(a)--Adopt Reso Authorizing Acceptance & Appropriation of CDBG DR grants Page 2 As the grants operate on a reimbursement basis, departments will initially fund eligible expenses, with reimbursement subsequently provided by HCD. While processing times may vary, HCD typically issues reimbursements within approximately two months of submission. No negative fiscal impact is anticipated.

Alternative Action
The City Council (Council) could decline the re-appropriation request and provide alternate direction to staff.

Background/Analysis
On March 19, 2024, City Council adopted a resolution authorizing the submission of the MITRIP application in the amount of $357,150 to HCD. These funds will clear dense vegetation and combustible materials to reduce fuel loads on City-owned properties. Targeted areas include census tracts 105 and 106.01 which includes 26 vacant City-owned lots along the north side of Linden Avenue and adjacent to Mercy Hospital, a 22-acre undeveloped parcel north of Benton Airpark, and approximately 211 acres that surround the south and west sides of Benton Airpark.

On July 16, 2024, City Council adopted a resolution authorizing staff to submit the MIT-PPS grant application for $2,650,000. MIT-PPS funds are earmarked for three key projects:

1. Updating the City’s Storm Drain Master Plan (SDMP):

In 1993, the City completed a SDMP that studied all major drainage basins in the City and specifically took a detailed look at the effects of post-1985 development on flood levels within the City. This study was independent of other studies prepared by FEMA.

In most instances, the SDMP determined that flood elevations would be higher than those levels proposed by FEMA. Given the age of the SDMP, and the requirement to update this plan by the Public Safety and the Community Development Design Elements of the General Plan, the City requested and was awarded $1,000,000 to update it.

2. Redding Fire Department’s (RFD) Risk Assessment, Standards of Cover, and Strategic Plan (RFD Planning Documents):

The RFD Planning Documents assess current operational capabilities, identifying service gaps, and establishes performance benchmarks to ensure proper emergency response within RFD’s jurisdiction. This analysis will assist RFD in equitably providing modern fire and emergency services within the City. The grant amount for this project is $150,000.

3. Community Outreach Program
The final project involves the development and implementation of a Community Outreach Program focused on strategic, high-impact activities that mitigate disaster risks and reduce future losses. This initiative will include a comprehensive education, outreach, and capacity-building campaign centered on wildfire preparedness and prevention. Key topics will include fuel modification, establishing and maintaining defensible space, home hardening techniques, evacuation preparedness, and safe fire Packet Pg. 119
Report to Redding City Council October 2, 2025
Re: 4.2(a)--Adopt Reso Authorizing Acceptance & Appropriation of CDBG DR grants Page 3 practices. These efforts will align with priorities outlined in the City’s Local Hazard Mitigation Plan and Community Wildfire Protection Plan. The City was awarded $1,500,000 in grant funds for this Community Outreach Program.

The attached Resolution removes previously approved budgets for each project from Housing and in turn, appropriates grant funds to each respective department including the Police Department, Fire Department, Parks Department, Public Works, Geographic Information Systems, and Code Enforcement.

Environmental Review
The allocation of grant funding is not considered a project under the California Environmental Quality Act (CEQA). The MIT-RIP Fuel Mitigation Project has been determined to be categorically exempt from CEQA under Sections 15301 (Existing Facilities) and 15304 (Minor Alterations to Land). Similarly, the MIT-PPS projects are exempt under Section 15061(b)(3), as it can be seen with certainty that they will have no potential to cause a significant effect on the environment.

Under the National Environmental Policy Act (NEPA), administrative and management activities—such as allocating grant funding—are considered exempt and require no further action. A separate environmental review has been conducted for each project and each of the projects is exempt from further federal environmental review requirements.

Council Priority/City Manager Goals
• Government of the 21st Century - “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development - “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
^Resolution
MIT-RIP Location Map
July 16, 2024 Staff Report
March 19, 2024 Staff Report
Packet Pg. 120
RESOLUTION NO. 2025 - ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND ADOPTING THE 12TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049 APPROPRIATING $0 OF CDBG DR MIT-PPS/RIP FUNDING FOR UPDATING THE CITY’S STORM DRAIN MASTER PLAN, RFD

PLANNING DOCUMENTS, COMMUNITY OUTREACH PROGRAM AND FUEL MITIGATION FOR FISCAL YEAR 2025-26

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2025-049 be and is hereby amended as follows:

FUND DIVISION DESCRIPTION INCREASE DECREASE
191
102
102
102
102
241
315
9191
1450
1550
1793
1198
6791
3111
HCD – State and Local
Police – Grants
Fire – Grants
Recreation & Parks Op Grants
General Govt
Storm Drain - General and Admin
Geographic Information Services
236,650.00
1,160,010.00
285,720.00
51,990.00
970,000.00
14,200.00
2,718,570.00
THAT account titles and numbers requiring adjustments by this Resolution are as follows:

USE SOURCE

OF FUNDS OF FUNDS
Increase (Decrease) Revenue
191-9191-3601901-00000 Fed Grant - Housing $ (2,718,570) 102-1450-3600401-CDGCO Fed Grant - Police $ 236,650
102-1550-3600701-CDGRA Fed Grant - Fire $ 140,000
102-1550-3600701-CDGCO Fed Grant - Fire $ 1,020,010
102-1793-3601601-CDGRP Fed Grant - Recreation $ 285,720 102-1198-3622301-CDGCO Fed Grant - Gen Govt $ 51,990
241-6791-3603701-CDGSD Fed Grant - Storm Drain $ 970,000 315-3111-3604901-CDGCO Fed Grant - Internal Service $ 14,200 Increase Expenditures
191-9191-6190910-00000 Fed Grant - Housing - Proj $ (2,718,570) 102-1450-6190910-CDGCO Fed Grant - Police - Proj $ 236,650 102-1550-6190910-CDGRA Fed Grant - Fire - Proj $ 130,000 102-1550-6190911-CDGRA Fed Grant - Fire - Activity $ 10,000 102-1550-6190910-CDGCO Fed Grant - Fire - Proj $ 1,020,010 102-1793-6190910-CDGRP Fed Grant - Rec - Proj $ 285,720 102-1198-6190910-CDGCO Fed Grant - Gen Govt - Proj $ 51,990 241-6791-6190910-CDGSD Fed Grant - Storm Drain - Proj $ 900,000 241-6791-6190911-CDGSD Fed Grant - Storm Drain - Activity $ 70,000 315-3111-6190910-CDGCO Fed Grant - Internal Service - Proj $ 14,200 Total $ - $ -
Packet Pg. 121 Attachment: ^Resolution (4.2(a)--Adopt Reso Authorizing Acceptance & Appropriation of CDBG DR grants) THAT the purpose is to appropriate $0 of CDBG DR MIT-PPS/RIP funding for updating the City’s Storm Drain Master Plan, RFD Planning Documents, Community Outreach Program and Fuel Mitigation for fiscal year 2025-26.

I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 7th day of October, 2025, and was duly adopted at said meeting by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

JACK MUNNS, Mayor
ATTEST: FORM APPROVAL:

SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney Packet Pg. 122 Attachment: ^Resolution (4.2(a)--Adopt Reso Authorizing Acceptance & Appropriation of CDBG DR grants) Buenaventura Blvd
Court St
Airpark Dr
Starlight Blvd
Rosaline Ave
Grandview Av
Willis St
Teton Dr
Sonoma St
Oak St
Misty Glen Dr
Chestnut St
Cumberland Dr
Placer St
Wasatch Dr
Auburn Dr
Buenaventura Blvd
Mesa St
Pleasant St
Jay St
Dream St
Cal Ore Dr
Siskiyou St
Cessna Dr
Octavia St
San Francisco St
Skyline Dr
Siena Ave
South St
Fig Ave
Adirondack Dr
Oak Ridge Dr
Everest Dr
Terrace St
Dartmouth Dr
Rosita
Dr
Rushmore Dr
Andes Dr
Walnut Ave
Stratford Ave
Regent Ave
Lear Way
Fujiyama Way
Hillcrest St
Seminole Dr
Quartz Way
Jen Way
Sheridan
Rainier Dr
Cottonwood
Ave
Oakwood Pl
Capitan Dr
A
melia C
W
t
estgate Ave
Fairoaks C
G
t
ladstone Ct
Allegheny Ct
a Hills Ave
Vista Ave
Grace Ave
Piper Way
Cutlas Ct
Buena Vista St
Pawnee Ct
Roanok
Almaden Dr
Bambury Ct
Winchester Pl
Crestview Ave
Sacramento St
Eugenia
Linden Ave
Lakeside Dr
Olive Ave
West St
Butte St
Gold St
Walnut Ave
Gold St
South St
Chestnut St
Yuba St
Census Tract 101
Census
Tract 105
Census
Tract 106.01
Census
Tract
106.02
Location Map
City of Redding
0 1,000 2,000
/ Feet
Legend
Parcel
City Owned Property
Census Tract
Date Printed: March 12,
2999 South St
APN: 104-100-032
2700 Placer St
APN: 104-100-032
3881 Placer St
APN: 104-040-043
P:\Housing\ProProjects\CityOwnedParcels_SouthPlacerLinden Packet Pg. 123 Attachment: MIT-RIP Location Map (4.2(a)--Adopt Reso Authorizing Acceptance & Appropriation of CDBG

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions:
(1) Adopt Resolution authorizing the City Manager, or designee, to submit three State of California Department of Housing and Community Development, Community Development Block Grant Mitigation Planning and Public Services Program grant applications in an aggregate amount not to exceed $2,650,000; and if awarded, execute the Agreement, any amendments and associated documents to complete the due diligence process, and allocate the grant funding;
(2) Find that applying for grant funding is not considered a project under the California Environmental Quality Act; and
(3) Find that applying for grant funding is exempt from review under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3).

Fiscal Impact
Community Development Block Grant (CDBG) Mitigation (MIT) Planning and Public Services (PPS) grant funds require no match obligation. City of Redding (City) staff time coordinating resulting projects will be paid through the grants as activity delivery - up to 20 percent of the award. The MIT-PPS Program grant request will be in an amount not to exceed $2.65 million.

There is no impact to the General Fund.

Alternative Action
The City Council could decline to adopt the resolution of the CDBG MIT-PPS Program and staff would not apply for the grant opportunity.

MEETING DATE: July 16, 2024
ITEM NO. 4.2(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.2(a)--Notice of Intent to Apply for State of California Housing and Community Development - Community Development Block Grant Mitigation Planning and Public Services Program Funding
Steve Bade, Assistant City
Manager
Packet Pg. 124 Attachment: July 16, 2024 Staff Report (4.2(a)--Adopt Reso Authorizing Acceptance & Appropriation of CDBG DR grants) Report to Redding City Council July 10, 2024
Re: 4.2(a)--Notice of Intent to Apply for CDBG MIT PPS Grant Funding Page 2 Background/Analysis
The State of California Housing and Community Development is committed to helping communities recover after disasters by administering special federal funds for mitigation purposes.

MIT-PPS Program funds are available to assist eligible local jurisdictions with mitigation-related planning and public services needs to support risk reduction from wildfire, flooding, and earthquake hazards. MIT-PPS funds may be used to create projects that address risks to community lifelines that support human health and safety and provide mitigation for individual and community-based systems. Staff proposes to apply for up to $2.65 million, and if awarded, complete two mitigation planning activities designed to lessen the future risk of wildfire and flooding and partner with multiple City departments to develop a community outreach program to educate the public on the City’s Community Wildfire Protection Plan.

Environmental Review
Applying for grant funding is not considered a project under the California Environmental Quality Act (CEQA). Any project that is developed will be reviewed for CEQA compliance once the details are known.

Under the National Environmental Policy Act, administrative and management activities such as applying for grant funding are considered exempt activities and no further action is required.

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions:
(1) Adopt Resolution authorizing the City Manager, or designee, to submit a State of California Department of Housing and Community Development, Community Development Block Grant Disaster Recovery Mitigation Resilient Infrastructure Program grant application in the amount of $357,150.53 for fuels mitigation in the 105- and 106.01-Census tracts; and if awarded, execute any agreements and subsequent documentation to facilitate acceptance;
(2) Adopt Resolution authorizing the City Manager, or designee, to submit a State of California Department of Housing and Community Development, Community Development Block Grant Mitigation Planning and Public Services Program grant application in an amount not to exceed $2,000,000; and if awarded, execute any agreements and subsequent documentation to facilitate acceptance; (3) Determine that applying for grant funding is not considered a project under the California Environmental Quality Act; and
(4) Determine that applying for grant funding is exempt from review under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3).

Fiscal Impact
Community Development Block Grant (CDBG) Mitigation (MIT) Planning, Public Services (PPS) and Resilient Infrastructure Program (RIP) grant funds require no match obligation. City staff time coordinating resulting projects may be paid through the grants as activity delivery - up to 15 percent of the award. The MIT-PPS Program grant request will be for up to $2,000,000.

There is no impact to the General Fund. The MIT-RIP grant application is for an amount of $357,150.53 for a multi-year fuel mitigation project in the 105- and 106.01-census tracts.

MEETING DATE: March 19, 2024
ITEM NO. 4.2(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.2(a)--Notice of Intent to Apply for State of California Housing and Community Development CDBG-MIT Planning and Public Services and Resilient Infrastructure Program Funding.

Steve Bade, Assistant City
Manager
Packet Pg. 126 Attachment: March 19, 2024 Staff Report (4.2(a)--Adopt Reso Authorizing Acceptance & Appropriation of CDBG DR grants) Report to Redding City Council March 13, 2024
Re: 4.2(a)--Notice of Intent to Apply for CDBG MIT RIP and PPS Grant Funding Page 2 Alternative Action
The City Council could decline to adopt the resolutions of the CDBG MIT-PPS or MIT-RIP Programs and staff would not apply for either grant opportunity.

Background/Analysis
The State of California Housing and Community Development is committed to helping communities recover after disasters by administering special federal funds for both recovery and mitigation purposes. The purpose of the CDBG MIT-RIP is to assist local jurisdictions with hazard mitigation (wildfire, flooding and earthquake) to infrastructure.

The City of Redding (City) has been identified as an eligible jurisdiction for the MIT-RIP Funds due to the 2018 Carr Fire. The project being proposed is strategically aligned to lessen the impacts of a future fire originating or reaching areas housing critical infrastructure. The funds can be used to clear dense vegetation and remove combustibles to reduce fuel load on Cityowned property. The proposed outcome of this project is to bring hazardous fuels in targeted areas (census tracts 105 and 106.01) to a level that the City can maintain with existing allocated funds. If awarded, staff proposes to perform work on 26 vacant City-owned lots along the north side of Linden Avenue. This area has an immediate proximity to Mercy Hospital, a 22-acre vacant parcel to the north of Benton Airpark, and approximately 211 acres of land encompassing the south and west areas of Benton Airpark.

In addition to the MIT-RIP grant request, the MIT-PPS Program funds are available to assist eligible local jurisdictions with mitigation-related planning and public services needs to support risk reduction from wildfire, flooding, and earthquake hazards. MIT-PPS funds may be used to create projects that address risks to community lifelines that support human health and safety and provide mitigation for individual and community-based systems. Staff proposes to apply for up to $2,000,000, and if awarded, partner with multiple City departments to develop a community outreach program and mitigation planning activities designed to lessen the future risk of wildfire.

Under the National Environmental Policy Act (NEPA), administrative and management activities such as applying for grant funding are considered exempt activities and no further action is required. Any construction projects will be reviewed for NEPA requirements if awarded funding by the State of California.

Council Priority/City Manager Goals
• Government of the 21st Century - “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Packet Pg. 127 Attachment: March 19, 2024 Staff Report (4.2(a)--Adopt Reso Authorizing Acceptance & Appropriation of CDBG DR grants) Report to Redding City Council March 13, 2024
Re: 4.2(a)--Notice of Intent to Apply for CDBG MIT RIP and PPS Grant Funding Page 3 • Economic Development- “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
^Resolution CDBG-DR MIT RIP
^Resolution CDBG-DR MIT PPS
MIT-RIP Location Map
Packet Pg. 128 Attachment: March 19, 2024 Staff Report (4.2(a)--Adopt Reso Authorizing Acceptance & Appropriation of CDBG DR grants)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the City Manager, or designee, to execute the First Amendment (C-10028) to the contract with Emergency Vehicle Outfitting Company in an amount not-to-exceed $200,000, annually, for two years for outfitting vehicles with the needed equipment.

Fiscal Impact
The City of Redding Police Department (RPD) will use previously allocated funds to RPD’s Rolling Stock Replacement Fund to outfit the vehicles. Pursuant to Council Policy 416, staff will administratively cover contract obligations, as needed. There is no additional impact to the General Fund.

Alternative Action
The City Council (Council) could choose to not authorize extending the agreement with Emergency Vehicle Outfitting Company (EVOC) for outfitting vehicles and provide staff with alternative direction.

Background/Analysis
On August 15, 2023, Council authorized RPD to enter into a sole-source agreement with EVOC for outfitting RPD vehicles with the necessary equipment (previous staff report attached.) The agreement expired on July 31, 2025, and RPD would like to extend for an additional two years.

When RPD requested to sole-source with EVOC, there were limited viable options for the needed services. RPD had gone out to bid in 2022 for the services and received four bids, all but one being out of the Redding area. The low bid was received from a company out of Chico who was awarded the bid to outfit seven vehicles. While the company came highly recommended, after they completed five vehicles, the contract was cancelled due to many issues with the work.

MEETING DATE: October 7, 2025
ITEM NO. 4.9(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.9(a)--Authorize Extending a Sole Source Agreement with Emergency Vehicle Outfitting Company for Vehicle Outfitting for the Redding Police Department for two years Brian Barner, Chief of Police
Packet Pg. 129
Report to Redding City Council October 2, 2025
Re: 4.9(a)--Extension of Contract Agreement with EVOC Page 2 Since this time, EVOC has been outfitting all of RPD’s vehicles.

While it is the normal policy to go out to bid for these services, the status of qualified and available vendors has not seen any significant changes to who provides these services. EVOC is a local vendor and has provided RPD with excellent service. Extending this agreement for an additional two-year period provides RPD with consistent services with a local vendor. At the end of this term, RPD anticipates going out to bid to determine if there are other vendors who are qualified to do this work.

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

Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
Previous Staff Report 8-15-2023 4.9(b)
C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company
C-10028 First Amendment
Packet Pg. 130

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the Redding Police Department to sole source an agreement with Emergency Vehicle Outfitting Company in the amount not to exceed $200,000 annually, for two years to outfit vehicles with the needed equipment.

Fiscal Impact
Redding Police Department (RPD) will use a portion of the American Rescue Plan Act (ARPA) funding to outfit patrol vehicles. There is no fiscal impact to the General Fund.

Alternative Action
The City Council could choose to not authorize entering into an agreement with Emergency Vehicle Outfitting Company (EVOC) for outfitting vehicles and provide staff with alternative direction.

Background/Analysis
Just as it has been difficult to purchase vehicles over the last several years, it has also been extremely difficult to have vehicles outfitted in a timely manner. While some of the delays have been due to supply chain issues caused by COVID-19, it has also been difficult to find reliable installers. In April 2022, RPD went out to bid for vehicle outfitting of seven vehicles and received four bids. The award was given to a company out of Chico, CA. While this company came highly recommended, there were several issues with the installation of the equipment that delayed vehicles being completed and put into service. In June 2023, after five of the seven vehicles were completed, it was decided to terminate the contract with them and find another resource to complete the last two of this lot. Since that time, RPD has acquired two additional vehicles that need outfitting. In addition, RPD anticipates purchasing a large number of vehicles that will need to be outfitted. With the length of time it takes to receive the new vehicles, it is MEETING DATE: August 15, 2023
ITEM NO. 4.9(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.9(b)--Authorize a Sole Source Agreement with Emergency Vehicle Outfitting Company for Vehicle Outfitting for the Redding Police Department Bill Schueller, Chief of Police
Packet Pg. 131 Attachment: Previous Staff Report 8-15-2023 4.9(b) (4.9(a)--Extension of Contract Agreement with EVOC) Report to Redding City Council August 4, 2023
Re: 4.9(b)‐‐Authorize Sole Source Agreement Page 2

necessary to establish a vendor who can provide the necessary work in a timely manner. The estimate of work that currently needs to be completed totals approximately $70,000. It is estimated that outfitting the additional vehicles to be purchased over the next several years could total as much as $200,000.

One of the bids received in April 2022 was from EVOC, the only local bidder. At the time of the bid request, EVOC was a fairly new business and did not have the resources to be competitive with the other bidders. Since that time, EVOC has established their business and have the capacity to provide the services that are needed. Over the last year, EVOC has successfully completed several small jobs for RPD as well as several other City departments and has proven their ability to do the work. RPD would like to sole source to EVOC for the next two years in an annual amount not to exceed $200,000. The terms of the agreement would be set for the two-year period at $100 per hour for labor and discounted prices off the manufacturer’s suggested retail prices (MSRP) as outlined on the attached fee schedule. After the two years, RPD would go back out to bid to determine if the market has changed for these services. While it is not the normal practice to sole source this work, authorizing this agreement will allow RPD to ensure the services are available when needed with a local company.

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

Council Priority/City Manager Goals
 Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
^EVOC Fee Schedule
Packet Pg. 132 Attachment: Previous Staff Report 8-15-2023 4.9(b) (4.9(a)--Extension of Contract Agreement with EVOC) Packet Pg. 133
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 134
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 135
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 136
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 137
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 138
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 139
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 140
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 141
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 142
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 143
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 144
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of Packet Pg. 145
Attachment: C-10028 - Consulting and Professional Services Contract - 2023 - Emergency Vehicle Outfitting Company (4.9(a)--Extension of

FIRST AMENDMENT TO CONSUL TING AND
PROFESSIONAL SERVICES CONTRACT (C-10028)
The Consulting and Professional Services Contract (C-10028) dated September 7, 2023 between the City of Redding, California, ("City") a municipal corporation, and Emergency Vehicle Outfitting Company ("Contractor") is amended as follows:

The following Sections are amended to read in its entirety as follows:

SECTION 3. TERM AND TERMINATION
A. This agreement shall commence on the date of signing and shall terminate on July 31, 2027.

All other terms and conditions of the Contract dated September 7, 2023 shallremain in full force and effect.

The date ofthis Amendment shall be August 1, 2025. IN WITNESS WHEREOF, City and Consultant have executed this Amendment on the days and year set forth below:

Dated: -------,2025
ATTEST:

CITY OF REDDING,
A Municipal Corporation
STEVE BADE, Interim City Manager
APPROVED AS TO FORM:

CHRISTIAN M. CURTIS
City Attorney
SHARLENE TIPTON, City Clerk By:

CONT ACTOR
Dated: C)=l /2, "?) ,2025
----'-1,r=-�-
Packet Pg. 146 Attachment: C-10028 First Amendment (4.9(a)--Extension of Contract Agreement with EVOC)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions:
(1) Adopt Resolution terminating the South Street Water Main at Railroad Emergency Replacement Project; and
(2) Pursuant to Public Contract Code Section 22050(c)(1), make a determination by a fourfifths vote that the emergency conditions necessitating waiver of competitive bidding in order to procure immediate repair of the water system has concluded.

Fiscal Impact
The South Street Water Main at Railroad Emergency Replacement Project (Project) is funded by the City of Redding’s (City) Water Utility Division. The total estimated project cost is $2,030,000. The Water Utility Division’s Fiscal Year 2024-25 Budget has sufficient funds appropriated to complete the project. As remaining invoices are received, the final project costs are being calculated – the City anticipates the final pay estimate in mid-October.

Alternative Action
The City Council (Council) may choose not to accept the attached resolution and provide alternate direction to staff.

Background/Analysis
On February 4, 2025, Council adopted an emergency resolution for the project and authorized the negotiation of emergency contracts. The project proposed to replace and relocate the failed section of 12-inch, cast-iron water main and corrugated steel pipe casing in South Street that is beneath the Union Pacific Railroad (UPRR) tracks by jack and boring a new steel pipe casing and installing a 16-inch, ductile iron pipe. Work also included water main tie-in fittings, isolation valves, asphalt concrete pavement, curb, gutter, sidewalk and other miscellaneous items.

MEETING DATE: October 7, 2025
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(a)--Update for the Emergency Work for the South Street Water Main at Railroad Emergency Replacement Project.

Michael Webb, Public Works
Director
Packet Pg. 147
Report to Redding City Council September 30, 2025
Re: 4.11(a)--Update for Emergency Repair to South Street Water Main ER Project Page 2 Staff contracted with RTA Construction, Inc. (RTA) for the project based on their technical knowledge of utility construction and previous performance on projects of similar size and scope. As of September 19, 2025, RTA Construction, Inc. has completed all items of work on the project. Currently, RTA is gathering the remaining invoicing for the project and submitting them to the City.

At this time, staff recommends that Council terminate the emergency by adoption of the resolution as all items of repair are complete. Per Public Code 22050(c)(3), the governing body shall terminate the action at the earliest possible date that conditions warrant. Once all costs have been collected, staff intends to bring forth to Council a final project acceptance staff report.

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

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

TERMINATING THE EMERGENCY FOR SOUTH STREET WATER

MAIN AT RAILROAD EMERGENCY REPLACMENT PROJECT
WHEREAS, Public Contract Code section 22050 and Redding Municipal Code 4.22.120(A) provide that, in the case of emergency, a public agency may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes without giving notice for bids to let contracts; and WHEREAS, on February 4, 2025, the City Council adopted Resolution 2025-006, authorizing emergency action pursuant to Public Contract Code section 22050 and Redding Municipal Code

4.22.120(A) to repair the water system and roadway at the South Street railroad crossing; and WHEREAS, work has been completed to repair and replace the broken water main pipe and asphalt concrete pavement damaged due to the water break and the repaired utility service and road is back open to the public; and
WHEREAS, it is contemplated that any further work on South Street infrastructure can be completed by giving notice for bids to let contracts;
NOW, THEREFORE, BE IT RESOLVED THAT:

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

2. Pursuant to Public Contract Code section 22050 and Redding Municipal Code 4.22.120(A), the emergency action declared by Resolution 2025-006 is hereby terminated.

I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council on the 7th day of October, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

JACK MUNNS, Mayor
ATTEST: FORM APPROVED:

SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney Packet Pg. 149 Attachment: ^Resolution (4.11(a)--Update for Emergency Repair to South Street Water Main ER Project) Packet Pg. 150
Attachment: ^Location Map (4.11(a)--Update for Emergency Repair to South Street Water Main ER Project)

CITY OF REDDING

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

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

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

Michael Webb, Public Works
Director

APPROVED
Packet Pg. 151 Attachment: Previous Staff Report February 4, 2025 (4.11(a)--Update for Emergency Repair to South Street Water Main ER Project) Report to Redding City Council January 29, 2025
Re: 9.11(g)--Declare Emergency for the South Street Water Main ER Project Page 2 Project cost components are estimates and some shifting of the project development, construction management, and construction contingency funds may be necessary to balance the project within the approved budget.

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

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

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

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

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

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

APPROVED
Packet Pg. 152 Attachment: Previous Staff Report February 4, 2025 (4.11(a)--Update for Emergency Repair to South Street Water Main ER Project) Report to Redding City Council January 29, 2025
Re: 9.11(g)--Declare Emergency for the South Street Water Main ER Project Page 3 The South Street water main provides critical redundancy for the Shasta Street main and other water mains in the area. While the South Street main remains out of service, this critical redundancy is not available. The lack of redundancy, combined with the increased velocities and stress to other aging mains where there are already concerns of reliability, including in Shasta Street, put the City at a much higher risk for additional water main failures that would have major impacts on the water system.

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

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

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

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

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

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

APPROVED
Packet Pg. 153 Attachment: Previous Staff Report February 4, 2025 (4.11(a)--Update for Emergency Repair to South Street Water Main ER Project) Report to Redding City Council January 29, 2025
Re: 9.11(g)--Declare Emergency for the South Street Water Main ER Project Page 4 Attachments
^Resolution
^Location Map
^Notice of Exemption

APPROVED
Packet Pg. 154 Attachment: Previous Staff Report February 4, 2025 (4.11(a)--Update for Emergency Repair to South Street Water Main ER Project) RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

REDDING TO DECLARE AN EMERGNCY AND AUTHORIZE THE

CITY MANAGER TO AWARD EMERGENCY CONTRACTS FOR THE

SOUTH STREET WATER MAIN AT RAILROAD EMERGENCY

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

APPROVED
Packet Pg. 155 Attachment: Previous Staff Report February 4, 2025 (4.11(a)--Update for Emergency Repair to South Street Water Main ER Project) NOW, THEREFORE, BE IT RESOLVED THAT:

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

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

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

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

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

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

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

APPROVED
Packet Pg. 156 Attachment: Previous Staff Report February 4, 2025 (4.11(a)--Update for Emergency Repair to South Street Water Main ER Project)

APPROVED
Packet Pg. 157
Attachment: Previous Staff Report February 4, 2025 (4.11(a)--Update for Emergency Repair to South Street Water Main ER Project) APPROVED Packet Pg. 158
Attachment: Previous Staff Report February 4, 2025 (4.11(a)--Update for Emergency Repair to South Street Water Main ER Project)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions related to the purchase of one 2026 Caterpillar 910 Loader for the City of Redding Solid Waste Utility:
(1) Authorize the purchase using Sourcewell contract pricing, with a net delivered cost of $247,254.83 including all applicable taxes and fees; and (2) Authorize the City Manager, or designee, to approve future pricing adjustments, terms, and policy changes as needed due to inflation and unstable economic conditions up to a total of $30,000.

Fiscal Impact
Funding for the acquisition of this unit will come from the Solid Waste rolling stock account.

Solid Waste currently has $1,525,864 in the rolling stock account.

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

Background/Analysis
The City of Redding (City) performs processing and sorting of recycling commodities collected through both curbside and self-haul to the Transfer Station facility. The operations at the City’s Transfer Station and Recycling Facility are conducted six days per week. Staff uses the loader for moving materials on the transfer station floor into a stock pile, to load the feed belt for the Materials Recycling Facility (MRF) machine, to remove large or heavy recyclable items from the trash pile, and to load processed organic materials (compost, fines, etc.) into customer vehicles or trailers.

MEETING DATE: October 7, 2025
ITEM NO. 4.11(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(b)--Purchase One Caterpillar 910 Loader Using Sourcewell Contract Pricing Michael Webb, Public Works
Director
Packet Pg. 159
Report to Redding City Council September 30, 2025
Re: 4.11(b)--Purchase One Caterpillar 910 Loader Page 2 Replacing this unit aligns with the adopted Rolling Stock Plan for the Solid Waste Utility. Due to the unit reaching the end of its expected lifecycle, staff planned for its replacement, which is based on the cumulative cost of the repairs and maintenance. Currently, with the increase in tonnage over the last two years, the daily run time has increased for this loader causing wear and tear to occur faster than anticipated. The current loader is a 2008 model with 6,254 hours of service, equating to 375,240 miles based on an industry excepted conversion factor of 60 miles per operating hour. Furthermore, given the existing loader’s current condition, it is unable to operate for a full day, ultimately affecting production. Replacing the current equipment will help the City meet California Air Resources Board (CARB) compliance for off-road equipment since the current loader is equipped with a tier 1 motor while the loader will be equipped with a tier 4 motor, in compliance with CARB requirements.

Caterpillar (CAT) Loaders are available under a Sourcewell competitively bid contract.

Sourcewell develops national competitive solicitations that meet or exceed local standards, and offers its members the benefits derived from cooperative purchasing. Using the Sourcewell cooperative contract to purchase a 2026 Caterpillar 910 Loader saves significant staff time that would otherwise be needed to prepare bid specifications and solicit individual quotations from vendors. The City also receives a significant price discount due to economies of scale realized through the volume of purchases on a multi-agency cooperative contract. With this particular purchase, Sourcewell gives a 23 percent discount, equating to over $47,000 in savings to the Solid Waste Utility.

For this model of loader, CAT does not offer the type of solid tires and bucket (open grapple) as a standard option. Peterson Tractor has vendors whom supply these non-standard items, which meet the specifications required for work in the Transfer Station for an additional cost of $61,665.15. Peterson Tractor will install these items prior to delivery of the machine. However, these items are not part of the Sourcewell contract and do not receive a discount per the contract.

In addition to the benefits of having solid tires in a solid waste environment, there are other benefits and efficiencies in standardizing these items that include:
• As they are currently in use on another loader at the Transfer Station - these parts would match the existing loader, so the Fleet Maintenance Division is better prepared for repairs and they are familiar with the aftermarket parts;
• Having standardized equipment also provides operational efficiencies in training for the operators of the machinery and training for the maintenance staff servicing the equipment; and
• Frequent services such as oil changes and air filter replacements are streamlined when equipment is standardized and reduces the need for additional parts inventory. • This new unit would also serve as back up to the primary unit used at the MRF.

The CAT 910 Loader being requested has performed very well at the Transfer Station, where loaders from other manufacturers have not performed as well under the same conditions.

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

Packet Pg. 160
Report to Redding City Council September 30, 2025
Re: 4.11(b)--Purchase One Caterpillar 910 Loader Page 3 Council Priority/City Manager Goals
This agenda item is a routine operation item.

Attachments
^Sales Agreement
Caterpillar Contract
Sourcewell Caterpillar Pricing
Packet Pg. 161
Packet Pg. 162 Attachment: ^Sales Agreement (4.11(b)--Purchase One Caterpillar 910 Loader) Packet Pg. 163 Attachment: ^Sales Agreement (4.11(b)--Purchase One Caterpillar 910 Loader) Packet Pg. 164 Attachment: ^Sales Agreement (4.11(b)--Purchase One Caterpillar 910 Loader) 011723- CAT
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Solicitation Number: RFP # 011723

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 168 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 011723- CAT
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to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

11. INDEMNITY AND HOLD HARMLESS
Intentionally omitted.

12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 172 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 011723- CAT
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under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.

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

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

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

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

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

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

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

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

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

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

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

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

1. Nonperformance of contractual requirements, or

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

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

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

1. Workers’ Compensation and Employer’s Liability.

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

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

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

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

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

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

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

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

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

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

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 175 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 011723- CAT
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C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. A Participating Dealer may name a Participating Entity as an additional insured on a case-by-case basis.

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

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

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

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

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

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 176 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 011723- CAT
Rev. 3/2022 13
Caterpillar: Confidential Green
Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.

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

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Intentionally omitted.

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

Sourcewell Caterpillar Inc.

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

By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B 5/5/2023 | 9:41 AM CDT 5/24/2023 | 9:13 AM PDT
5/24/2023 | 12:16 PM CDT
DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 177 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) RFP 011723 - Heavy Construction Equipment with Related
Attachments and Technology
Vendor Details
Company Name: Caterpillar Inc
Address:
100 NE Adams St
Peoria, IL 61629
Contact: Sean Egel
Email: [email protected]
Phone: 309-675-1399
HST#:

Submission Details
Created On: Tuesday November 15, 2022 14:22:18
Submitted On: Tuesday January 17, 2023 16:10:22
Submitted By: Sean Egel
Email: [email protected]
Transaction #: aeaa61ae-0c73-4610-8208-b80e2e0b4448
Submitter's IP Address: 192.189.129.23
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 178 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Specifications
Table 1: Proposer Identity & Authorized Representatives General Instructions (applies to all Tables) Sourcewell prefers a brief but thorough response to each question. Do not merely attach additional documents to your response without also providing a substantive response. Do not leave answers blank; respond “N/A” if the question does not apply to you (preferably with an explanation).

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

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

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

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

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

Primary Contact: Marta Sevilla
Title: Governmental Marketing Manager
Address: 100 NE Adams St, Peoria, IL 61629
Email: [email protected]
Phone: (309) 578-1150
Table 2: Company Information and Financial Strength
Line
Item Question Response *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 179 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 10 Provide a brief history of your company,
including your company’s core values,
business philosophy, and industry longevity
related to the requested equipment, products
or services.

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

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

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

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

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

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

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

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

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

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

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

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

No. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 180 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 16 How is your organization best described: is
it a manufacturer, a distributor/dealer/reseller,
or a service provider? Answer whichever
question (either a) or b) just below) best
applies to your organization.
a) If your company is best described as
a distributor/dealer/reseller (or similar entity),
provide your written authorization to act as a
distributor/dealer/reseller for the manufacturer
of the products proposed in this RFP. If
applicable, is your dealer network
independent or company owned?
b) If your company is best described as
a manufacturer or service provider, describe
your relationship with your sales and service
force and with your dealer network in
delivering the products and services
proposed in this RFP. Are these individuals
your employees, or the employees of a third
party?
Caterpillar is a world class manufacturer which distributes products through a vast and capable independent dealer network. Our dealers are strong independently owned companies and in North America alone our 47 dealers have a combined net worth of billions of dollars. Their large valuation is a competitive advantage because it allows them to have the infrastructure to support customers regardless of location, industry, fleet size, or application.

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

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

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

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

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

N/A
*
Table 3: Industry Recognition & Marketplace Success
Line
Item Question Response *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 181 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 19 Describe any relevant industry awards or
recognition that your company has received
in the past five years
Please note: To list all the awards received in the past 5 years would unnecessarily lengthen our response. For brevity, we are highlighting some recognition received in 2020, 2021 and 2022. Also note there are many global awards.

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

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

Just as we would never share Sourcewell sales information with other cooperatives, we also keep the sales volumes from other cooperatives confidential. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 182 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 23 List any GSA contracts or Standing Offers
and Supply Arrangements (SOSA) that you
hold. What is the annual sales volume for
each of these contracts over the past three
years?
Listed below are the current GSA contracts that Caterpillar holds:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Line
Item Question Response *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 183 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 26 Sales force. The Cat dealer salesforce is highly capable and trained in the construction industry.

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

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

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

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

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

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

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

Please refer to the Cat dealer locations map included in "Additional Documents". Additionally, you can leverage https://www.cat.com/en_US/support/dealerlocator.html to locate dealers by location. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 184 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 28 Service force. At Caterpillar we are very proud of the saying "The sales department sells the first machine; the service department sells every one after that." The Cat dealer network in North America collectively employs more than 20,000 factory trained technicians, parts experts, product support managers and
other service-oriented staff. These subject matter experts are supported by the best repair shop equipment and materials. As machines and engines are constantly updated, so too are our service experts. We conduct product-specific training every week of the year. Technician shortage is an industry-wide concern, but because Cat dealers are large, long established companies, they can offer strong compensation and benefit packages that encourage the best people to seek employment and to retain them once hired. Caterpillar works very closely with dealers and through a program called "ThinkBIG", we are able to keep the pipeline of high quality employees full. ThinkBIG is a Caterpillar-specific instructional program that pays the student while they train to become a technician. It is a 2-year program with lab and classroom work, and a paid internship at a sponsoring Cat Dealer. As a result, the student will graduate with an accredited degree backed with over 2,000 hours of work experience.

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

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

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

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

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

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

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

IMPORTANT NOTE: Should a member wish to include additional terms and conditions to this contract, or to otherwise request a Participating Addendum, that agreement / PA should be executed between the member and Cat dealer directly. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 185 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 30 Describe in detail the process and
procedure of your customer service
program, if applicable. Include your
response-time capabilities and
commitments, as well as any incentives
that help your providers meet your stated
service goals or promises.

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

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

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

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

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

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

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

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

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

Our 1.4 million parts are available to order 24/7 on Parts.Cat.Com. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 186 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 32 Describe your ability and willingness to
provide your products and services to
Sourcewell participating entities in Canada.

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

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

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

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

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

There are no restrictions or limitations for sales to members in Hawaii, Alaska or U.S. Territories. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 187 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Table 7: Marketing Plan
Line
Item Question Response *
36 Describe your marketing strategy for
promoting this contract opportunity.

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

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

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

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

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

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

Our wide machine portfolio and multiple configurations per machine model allows us to provide the best machine for the customer need. Our Cat dealers are trained to configure our equipment and advise the customer on the best machine and configuration for their application. Therefore, a consultative salesperson is integral in this process, and we do not use an e-procurement machine ordering process.
*
Table 8: Value-Added Attributes
Line
Item Question Response *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 188 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 40 Describe any product, equipment,
maintenance, or operator training
programs that you offer to
Sourcewell participating entities.

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

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

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

Caterpillar also has a licensed supplier that offers Cat Simulators to teach operational techniques from real job sites. For more information visit: https://catsimulators.com/ *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 189 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 41 Describe any technological
advances that your proposed
products or services offer.

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

Next Generation Excavators:

Cat Vision Link - Delivering valuable data with connected machine.

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

Cat Skid Steer and Compact Track Loaders:

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

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

Cat Backhoe Loaders:

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

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

Cat Tractors:

Stable Blade - Produces a smoother surface finish.

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

Cat Wheel Loaders:

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

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

Cat Off Highway Trucks:

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

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

Cat Articulated Trucks:

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

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

Machine/Operator Safety Technology:

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

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

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

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

Whether you're looking to add technology to your current machine, or want new ways to get more value out of the technology on your equipment, we have options for you. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 190 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 42 Describe any “green” initiatives
that relate to your company or to
your products or services, and
include a list of the certifying
agency for each.

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

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

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

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

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

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

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

Plants certified with IDO 14001:2004 Environmental Management System include:
1) Anchor Coupling - Goldsboro NC, ISO 14001:2004- Sept 2018 2) Anchor Coupling - Menominee - ISO 14001: 2015 - Jan. 2021 3) Gen Sets - Newberry 0 ISO 14001:2004 - Nov. 2017
4) Mapleton - 14001:2004 self-certification issued Jan 2013 5) Reman Services - Corinth MS - ISO 14001-2015- Sept. 2021 6) Reman Services - Franklin - ISO 14001:2004-May 2017
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 191 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 44 Describe any Women or Minority
Business Entity (WMBE), Small
Business Entity (SBE), or veteran
owned business certifications that
your company or hub partners
have obtained. Upload
documentation of certification (as
applicable) in the document
upload section of your response.

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

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

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

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

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

For more detail, please see our attached 2021 Global Diversity & Inclusion Report in the Additional Documents folder.
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 192 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) 45 What unique attributes does your
company, your products, or your
services offer to Sourcewell
participating entities? What makes
your proposed solutions unique in
your industry as it applies to
Sourcewell participating entities?
BEST OVERALL VALUE / LOWEST LIFE CYCLE COST:

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

CAT SAFETY SERVICES / SAFETY FEATURES:

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

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

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

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

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

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

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

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

Fleet Management & Services through Caterpillar Job Site Solutions:

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

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

Details on products and services are available at www.cat.com/safety. More information can be found in the additional document section. Pricing can be found in the pricing document section.
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 193 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Table 9: Warranty
Describe in detail your manufacturer warranty program, including conditions and requirements to qualify, claims procedure, and overall structure. You may upload representative samples of your warranty materials (if applicable) in the document upload section of your response in addition to responding to the questions below.

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

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

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

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

The selling Cat dealer can take responsibility for some or all the required service and maintenance needs to allow the agency to gain efficiency by focusing on the performance demands more than maintenance. CVA's are a useful tool to manage expenses. CVAs can be purchased at the same time as the machine purchase, or anytime after. Cat Financial also offers CVAs, which can be performed by Cat dealers in the United States, and are particularly helpful for customers who move their machine fleet to multiple locations which may have different servicing Cat dealers. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 194 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Table 10: Payment Terms and Financing Options
Line
Item Question Response *
53 Describe your payment terms and accepted payment
methods.

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

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

Caterpillar has its own financing arm, Cat Financial.

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

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

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

Many dealers do accept this method without additional fees. Some have limitations on the amount that can be processed.
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 195 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Table 11: Pricing and Delivery
Provide detailed pricing information in the questions that follow below. Keep in mind that reasonable price and product adjustments can be made during the term of an awarded Contract as described in the RFP, the template Contract, and the Sourcewell Price and Product Change Request Form.

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

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

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

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

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

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

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

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

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

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

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

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

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

Machines are large purchases and if there are unique Sourcewell member requirements our dealers will be happy to discuss on a case by case basis.
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 196 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Table 12: Pricing Offered
Line
Item The Pricing Offered in this Proposal is: * Comments 65 b. the same as the Proposer typically offers to GPOs, cooperative procurement organizations, or state purchasing departments.

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

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

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

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

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

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

Caterpillar will pay this fee and will not ask dealers or members to pay the fee.
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 197 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Table 14A: Depth and Breadth of Offered Equipment Products and Services Line
Item Question Response *
69 Provide a detailed description of the
equipment, products, and services that you
are offering in your proposal.

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

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

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

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

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

N/A
*
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 198 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
Table 148: Depth and 8readth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.

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

Offerings listed in applicable pricing
attachment section.

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

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

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

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 199 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
Documents
Ensure your submission document(s) conforms to the following:

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

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

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

4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - Machine Pricing.zip - Tuesday January 17, 2023 15:29:45 Financial Strength and Stability - Fin Strength and Stability.zip - Tuesday January 17, 2023 10:31:16 Marketing PlanISamples - Marketing Plan.pdf - Tuesday January 17, 2023 14:53:49 WMBEIMBEISBE or Related Certificates (optional)
Warranty Information - Warranty Combined.pdf - Monday January 16, 2023 10:36:31 Standard Transaction Document Samples (optional)
Upload Additional Document - Additional Documents.zip - Tuesday January 17, 2023 16:05:29 DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 200 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Addenda, Terms and Conditions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3. Presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 201 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this solicitation.

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

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

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

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

File Name
I have reviewed the
below addendum and
attachments (if
applicable)
Pages
Addendum_5_Heavy_Construction_Equipment_RFP_011723
Tue January 10 2023 08:47 AM
1 Addendum_4_Heavy_Construction_Equipment_RFP_011723
Fri January 6 2023 09:51 AM
2 Addendum_3_Heavy_Construction_Equipment_RFP_011723
Thu December 29 2022 12:33 PM
2 Addendum_2_Heavy_Construction_Equipment_RFP_011723
Wed December 21 2022 01:49 PM
1 Addendum_1_Heavy_Construction_Equipment_RFP 011723
Thu December 15 2022 09:27 AM
1 Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 202 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) TM-20-01077

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

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

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

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

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

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

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

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 203 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) TM-20-01077
C. USE; QUALITY CONTROL.

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

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

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

ARTICLE II: TERM, TERMINATION, AND MISCELLANEOUS.

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

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

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

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

3. Effect of Termination. Upon the termination of this Addendum for any reason, each Party will have thirty (30) days to, and require its Permitted Sublicensees to, remove all Licensed Trademarks from signage, websites, and the like bearing the other Party’s name or logo DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Packet Pg. 204 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) TM-20-01077
(excepting Sourcewell’s pre-printed catalog of vendors which may be used until the next printing). Vendor must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.

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

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

SOURCEWELL
By: _________________
Name:

Title:

Date:

Caterpillar Inc.

By: _________________
Name:

Title:

Date:

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 5/24/2023 | 2:45 PM CDT
Director of Operations and Procurement/CPO
Jeremy Schwartz Patrick Kearns
5/24/2023 | 12:48 PM PDT
Vice President Sales & Marketing - North America
Packet Pg. 205 Attachment: Caterpillar Contract (4.11(b)--Purchase One Caterpillar 910 Loader) Machine Model* New
Equipment
2025 Discount to Customer
(Off List Price)
Wheel Loaders
903 23.00%
906 23.00%
907 23.00%
908 23.00%
910 23.00%
914 23.00%
920 24.00%
926 24.00%
930 24.00%
938 24.00%
950GC 20.00%
950 18.00%
962 18.00%
966GC 20.00%
966 15.00%
972 11.00%
980 11.00%
982 11.00%
988 11.00%
988GC 11.00%
Track Loaders
953 19.00%
963 22.00%
973 23.00%
Non-Attached CAT OEM Worktools 15.00%
Parts & Service N/A
Technology Solutions N/A
Caterpillar Safety Services 15.00%
Job Site Solutions N/A
3 of 3 #Caterpillar: Confidential Green
2025 Sourcewell Caterpillar Cooperative Contract Discounts by Model Note
Base machines must be properly configured with other mandatory and optional items from the price list before they are considered operational. All new machines are subject to a commodity surcharge of up to 20% (In some cases, increased tire costs may cause this number to be greater) All new attachments (CAT work tools) are subject to a commodity surcharge of up to 25% Dealer costs (example: pre delivery inspection, assembly, freight to final location, etc.) are not subject to list discount Attachments (CAT work tools) purchased with new machine on same invoice are subject to same list discount as machine Non-Attached CAT OEM Work Tools are attachments sold on a standalone order without a machine purchase Parts and Service is offered by the servicing dealer at local rates Packet Pg. 206 Attachment: Sourcewell Caterpillar Pricing (4.11(b)--Purchase One Caterpillar 910 Loader)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to the Magnums Area Remote Sewer Project:
(1) Adopt the Mitigated Negative Declaration, and the Mitigation Monitoring and Environmental Commitment Program; and
(2) Approve the Magnums Area Remote Sewer Project as described, thereby satisfying the requirements of the California Environmental Quality Act Guidelines §15074.

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

The project construction costs are estimated to be approximately $3.4 million and has been budgeted through the City of Redding’s (City) Wastewater Utility Fund.

Alternative Action
The City Council (Council) may choose not to adopt the MND and the MMP, and not approve the project as described. Without approval, the project would not be able to proceed as a City project, as it would not comply with the California Environmental Quality Act (CEQA).

MEETING DATE: October 7, 2025
ITEM NO. 4.11(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(c)--Adopt the Mitigated Negative Declaration and Mitigation Monitoring Program; and Approve the Magnums Area Remote Sewer Project Michael Webb, Public Works
Director
Packet Pg. 207
Report to Redding City Council October 1, 2025
Re: 4.11(c)--Consider Approval of the Magnums Area Remote Sewer Project Page 2 Background/Analysis
The project will replace existing sewer lines to address deterioration due to age, lines which require a high level of maintenance, and/or lines which are undersized. Construction activities would span approximately 5,060-feet long across multiple locations, from Mishka Court, Greenback Lane, Calexico Drive, Dickson Drive, E. Keswick Dam Road, Lake Boulevard, Shamrock Street, sections along the back sections of Magnums Way and Guinevere Court and along portions of the railroad.

The project would require trenching, sub-surface pipe bursting, vegetation removal, utility relocation, paving, sign installation, and striping. The sub-surface pipe bursting method will be used to minimize stream impacts in multiple locations. This method will require an excavated pit on each end of the sewer line. The new sewer pipe will be placed in the pit and fed into the existing pipe replacing it in its original alignment.

The majority of work would occur within City right-of-way and utility easement areas; however, temporary permits to enter and construct on adjacent private lands may be needed to conform driveways, replace/relocate utilities, or modify drainage. Permanent right-of-way acquisition would not be required. Staging areas will occur within City right-of-way and on City property, and one-way traffic control will be required for work near roadways.

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

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

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

Environmental Review
The City is the lead agency for the project pursuant to CEQA. As the lead CEQA agency, the Council is authorized to adopt the MND per Redding Municipal Code Section §18.24.070.E and state law. Upon adoption of the MND and approval of the project by the Council, a Notice of Determination will be filed with the Shasta County Clerk’s Office and the State Clearinghouse, completing the environmental review process. The IS/MND is available in the Public Works Department and is currently available online at:

Packet Pg. 208
Report to Redding City Council October 1, 2025
Re: 4.11(c)--Consider Approval of the Magnums Area Remote Sewer Project Page 3 https://www.cityofredding.gov/government/departments/public_works/environmental_managem ent/index.php.

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

Attachments
^Location Map
Mitigated Negative Declaration
Mitigation Monitoring and Environmental Commitment Program Packet Pg. 209
Figure No.

Title
Project Location
Client/Project

40.626612,
-122.404306

40.617223,
-122.38913
Notes
C:\Temp\185706839_Magnums\gis_cad\gis\mxds\185706839_figure_1_project_location.mxd Revised: 2025-05-06 By: tmooney Disclaimer: Stantec assumes no responsibility for data supplied in electronic format. The recipient accepts full responsibility for verifying the accuracy and completeness of the data. The recipient releases Stantec, its officers, employees, consultants and agents, from any and all claims arising in any way from the content or provision of the data. 1 Project Location
185706839
City of Redding
Magnums Area Remote Sewer Project
Shasta County, California
USGS Shasta Dam; Redding
PLSS: T32N R05W S13, 14, 23, 24
Prepared by TM on 2025-05-06
Reviewed by SS on 2025-05-06

1. Coordinate System: NAD 1983 StatePlane California I
FIPS 0401 Feet

2. Base map: Esri USA Topo Maps

3. Public Land Survey: T 32N, R 05W, Sec. 13, 14, 23, 24 NV UT
CA
AZ
OR WY
0 2,000
Feet
1 inch = 2,000 feet (At page size of 8.5"x11") Map Reference Point Study Area (8.66 acres)
($ $ ¯
Packet Pg. 210 Attachment: ^Location Map (4.11(c)--Consider Approval of the Magnums Area Remote Sewer Project) Magnums Area Remote Sewer Project Page 1
September 2025

MITIGATED NEGATIVE DECLARATION

MAGNUMS AREA REMOTE SEWER PROJECT
(STATE CLEARINGHOUSE NO. 2025-080307)

SUBJECT
Magnums Area Remote Sewer Project

PROJECT DESCRIPTION
The City of Redding (City) is proposing the Magnums Area Remote Sewer Project in the City of Redding, Shasta County, California. The purpose of the project is to replace existing sewer lines to address deterioration due to age, lines which require a high level of maintenance, and/or lines which are undersized. The project would require trenching, sub-surface pipe bursting, vegetation removal, utility relocation, paving, sign installation, and striping.

The project would span approximately 5,060-feet long across multiple locations, from Mishka Ct., Greenback Ln., Calexico Dr., Dickson Dr., E. Keswick Dam Rd., Lake Blvd., Shamrock St., sections along the back sections of Magnums Way and Guinevere Ct. and along portions of the railroad. The project would cross Boulder Creek in approximately 4 separate sections and will parallel the stream closely in a few others. The sub-surface pipe bursting method will be used to minimize stream impacts in these locations. This method will require an excavated pit on each end of the sewer line. Each excavated pit will be approximately 6-feet wide, 10-feet long, and have an excavation depth ranging from 6 to 12 feet. The new sewer pipe will be placed in the pit and fed into the existing pipe replacing it in its original alignment. The new pipes will be connected to manholes at each end, and the pits will be backfilled with slurry and native material. The old siphon pipes, the removed manhole material, and the excavated earthen material would be taken to a landfill. Construction is expected to require one construction season (July 1 through October 31) beginning in summer 2026.

ENVIRONMENTAL SETTING
The project area is centered on Boulder Creek, an intermittent stream, in a residential neighborhood.

Valley foothill riparian habitat occurs along Boulder Creek through most of the study area. Work would be primarily located within existing easement areas and City owned property zoned open space.

FINDINGS AND DETERMINATION
The City of Redding conducted an Initial Study (attached) that determined that the proposed project could have significant environmental effects on biological resources. Implementation of specific mitigation measures identified below will avoid or mitigate the potentially significant environmental effects identified, and the preparation of an environmental impact report will not be required. If there are substantial changes that alter the character or impacts of the proposed project, another environmental impact determination will be necessary.

Prior to approval of the project, the lead agency may conclude, at a public hearing, that certain mitigation measures identified in the Mitigated Negative Declaration are infeasible or undesirable. In accordance Packet Pg. 211 Attachment: Mitigated Negative Declaration (4.11(c)--Consider Approval of the Magnums Area Remote Sewer Project) City of Redding
Public Works Department, Engineering Division Mitigated Negative Declaration

Page 2 ends

Redding City CouncilOctober 7, 2025

Redding City Council
October 7, 2025