Agenda Packet — Redding City Council, May 19, 2026 (part 3 of 3)

Footnote 2: Employees in this classification may work a 42-hour workweek.

Unit Code Bargaining Unit Name A IBEW Maintenance
Master Salary Schedule - Revised 05/19/2026
B IBEW Electric C IAFF D RPOA E City Council Member F RPOA-Misc G RPMA H4 RIEO-CTP-Exempt
H5 RIEO.-CTP-Non-Exempt
I1 RIEO-SUP/CONF (Exempt)
I2 RIEO-SUP/CONF (Non-Exempt)
M1 UPEC - Tech (Exempt)
M2 UPEC - Tech (NonExempt) N UPEC - RFMU P IBEW Power Production U Unrepresented - Part Time (Non-Exempt) Z Unrepresented - Exec Mgmt (Exempt) CONT Contract Employees
ELCT Elected Positions
Packet Pg. 533 Attachment: COR Master Salary Schedule 051926 (4.15(a)--Master Salary Schedule 05/19/2026)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following appointments to the City of Redding Audit and Financial Advisory Committees:

Audit Committee
(1) Approve Mayor Mike Littau’s appointment of one non-voting member, Ken Freigher, for a two-year term to November 30, 2028;
(2) Approve Vice Mayor Dr. Paul Dhanuka’s appointment of one non-voting member in 2026, Dale Ball, for a one-year term to November 30, 2027; and Financial Advisory Committee
(1) Approve Mayor Littau’s two Council Member appointments of himself and Council Member Tenessa Audette;
(2) Approve the following Council Member-sponsored appointments:
(a) Mayor Mike Littau – Jason Richart, for a three-year term to November 30, 2029; (b) Vice Mayor Dr. Dhanuka – Michael Quinn, for a three-year term to November 30, 2029;
(c) Mayor Pro Tempore Erin Resner – Bruce Dean, for a one-year term to November 30, 2027;
(d) Council Member Tenessa Audette – Dennice Maxwell, for a one-year term to November 30, 2027; and
(e) Council Member Jack Munns – Kurt Swanson, for a one-year term to November 30, 2027.

Fiscal Impact
There is no direct fiscal impact associated with these appointments. Committee members serve without compensation and meetings will be supported by existing City of Redding (City) staff resources within the City Manager’s Office and Finance Department.

MEETING DATE: May 19, 2026
ITEM NO. 5.1
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 5.1--Consider Council Member appointments to the City of Redding Audit and Financial Advisory Committees.

Sharlene Tipton, City Clerk
Packet Pg. 534
Report to Redding City Council May 15, 2026
Re: 5.1--City of Redding Audit & Financial Advisory Committee Appointments Page 2 Alternative Action
Council could provide alternative direction regarding the appointment process.

Background/Analysis
On December 2, 2025, during item 9.1(e) Council directed staff to prepare resolutions formalizing the Audit Committee and ensuring all activities are clearly defined and a new Financial Advisory Committee (FAC) established. The purpose of the FAC is to provide community-informed advisory input on budget development, financial priorities, and long-term sustainability. The Audit Committee’s purpose is to review internal and external audit functions, support best practices in governance and risk management, and help strengthen communication between City leadership, staff, and auditors.

On January 20, 2026, during item 9.1(c) Council discussed draft resolutions and provided clarifying language and feedback to staff regarding the committees, structure, composition, how Council and community members are appointed.

Audit Committee
The City has maintained an Audit Committee since 2015 as a Brown Act committee. Prior to 2015, the committee did not operate under Brown Act requirements. Currently, the Audit Committee meets annually, at a minimum, to review and discuss the results of the City’s annual external audit. In addition, Council Policy No. 425 delegates responsibility for internal audits to the City’s Finance Department and requires that the results of those audits be presented to the Audit Committee.

On February 3, 2026, the Council adopted Resolution No. 2026-009, thereby formalizing the City’s Audit Committee as a focused, Council led advisory body dedicated to audit and accountability functions. It provides a mechanism to initiate and review internal audits with a dedicated reporting mechanism. The Audit Committee shall report its observations, recommendations, and activities to the City Council on a regular basis, or as otherwise requested by the Council, and recommend to City Council acceptance of Annual Comprehensive Financial Report (ACFR) and external audit results. Key elements include:
• Clear Authority and Role: The Audit Committee serves in an advisory capacity to the City Council, providing structured oversight of internal audit activities, external audit services, and audit findings, without directing staff or assuming operational authority; • Council Leadership with Limited Membership: The Committee is composed of the Mayor and Vice Mayor as voting members, ensuring direct Council involvement and accountability. The alternate member shall be the Mayor Pro Tempore, who shall also serve ex officio. The resolution also allows for the optional inclusion of up to two community members who serve in a non-voting advisory capacity to provide additional expertise and continuity over multiple years. Non-voting members shall serve staggered two-year terms. All non-voting members must be nominated by the Mayor and appointed by vote of the Council, except that in 2026, one of the two non-voting members shall be nominated by the Vice Mayor to serve a one-year term, in order to allow for proper staggering;
Packet Pg. 535
Report to Redding City Council May 15, 2026
Re: 5.1--City of Redding Audit & Financial Advisory Committee Appointments Page 3 • Continuity and Expertise: Staggered appointments and defined qualification criteria for community members are designed to preserve institutional knowledge and bring relevant audit, financial, or governance experience to the Committee’s work; • Regular, Transparent Meetings: Publicly noticed and open to public comment, provide a predictable forum for reviewing internal audit priorities and findings, external audit findings and performance, external audit contract considerations, and opportunities for process improvement; and
• Alignment with Best Practices: The Audit Committee structure reflects best practices in municipal governance by separating audit oversight from operational management while enhancing transparency and accountability.

Financial Advisory Committee
On February 3, 2026, the Council adopted Resolution No. 2026-010, thereby creating the FAC, which establishes a broader, community-facing advisory body focused on fiscal policy, budget priorities, and economic trends. The FAC derives its authority from the City Council, and serves solely in an advisory capacity and shall provide recommendations and observations to the City Council. The FAC shall have no independent decision-making authority and shall not direct City staff. The City Manager and Finance Director will support the Committee by providing relevant financial information, analysis, and staff presentations. Key elements include:
• Advisory Role to Council: The FAC provides non-binding recommendations and perspectives to the City Council on budget development, financial priorities, and longterm sustainability, without decision-making authority or staff direction; • Balanced Composition: The Committee includes two Council Members appointed through the Mayor’s committee assignment process and five community members appointed by Council vote. This structure balances elected-official oversight with diverse community and industry perspectives;
• Industry-Based Expertise and Community Insight: Community member criteria emphasizes representation from major employers, local industries, and professions that understand spending patterns, economic conditions, and the social and emotional pulse of the community. Restrictions on conflicts of interest and Council relationships preserve independence and credibility;
• Term Alignment and Continuity: Four-year staggered terms aligned with Council Member terms ensure continuity while maintaining accountability and periodic renewal of membership;
• Flexible, Budget-Aligned Meeting Cadence: The FAC is designed to meet strategically, often a limited number of times, to review materials staff intends to present to the Council, evaluate priorities, and provide feedback during budget development. Meeting frequency may increase during biennial budget cycles, with the FAC authorized to recommend cadence adjustments annually; and
• Sunset and Evaluation: A two-year sunset review requires the Council to evaluate the FAC’s effectiveness using data and outcomes, ensuring the FAC remains purposeful and aligned with Council priorities.

Packet Pg. 536
Report to Redding City Council May 15, 2026
Re: 5.1--City of Redding Audit & Financial Advisory Committee Appointments Page 4 Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
Audit Committee - Freigher, Ken
Audit Committee - Ball, Dale
Financial Advisory Committee - Richart, Jason
Financial Advisory Committee - Quinn, Michael
Financial Advisory Committee - Dean, Bruce
Financial Advisory Committee - Maxwell, Dennice
Financial Advisory Committee - Swanson, Kurt
Resolution No. 2026-009 - Establishing Audit Committee
Resolution No. 2026-010 - Establishing Financial Advisory Committee Previous Staff Report , February 3, 2026, item 4.1(a)--Adopt Resolutions for Audit Committee and Financial Advisory Committee
Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee
Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee
Minutes - Special City Council Meeting of October 22, 2025 Packet Pg. 537
Packet Pg. 538
Attachment: Audit Committee - Freigher, Ken (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 539
Attachment: Audit Committee - Freigher, Ken (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 540
Attachment: Audit Committee - Freigher, Ken (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 541
Attachment: Audit Committee - Ball, Dale (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 542
Attachment: Audit Committee - Ball, Dale (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 543
Attachment: Audit Committee - Ball, Dale (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 544
Attachment: Financial Advisory Committee - Richart, Jason (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 545
Attachment: Financial Advisory Committee - Richart, Jason (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 546
Attachment: Financial Advisory Committee - Richart, Jason (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 547
Attachment: Financial Advisory Committee - Quinn, Michael (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 548
Attachment: Financial Advisory Committee - Quinn, Michael (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 549
Attachment: Financial Advisory Committee - Quinn, Michael (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 550
Attachment: Financial Advisory Committee - Dean, Bruce (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 551
Attachment: Financial Advisory Committee - Dean, Bruce (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 552
Attachment: Financial Advisory Committee - Dean, Bruce (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 553
Attachment: Financial Advisory Committee - Dean, Bruce (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 554
Attachment: Financial Advisory Committee - Maxwell, Dennice (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 555
Attachment: Financial Advisory Committee - Maxwell, Dennice (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 556
Attachment: Financial Advisory Committee - Maxwell, Dennice (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 557 Attachment: Financial Advisory Committee - Swanson, Kurt (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Interests & Experiences
State and local law require that you abstain from participation in decisions that may affect your financial interests, including sources of income, interest in real property, personal finances, or investments. In addition, if appointed, you may be required to fill out a disclosure statement, which identifies certain areas of your financial interests beginning with the immediate twelve month period prior to your appointment. * Please indicate which Board, Commission, or Committee you would like to apply for. (Select only 1) Please indicate any additional boards or committees from the list above that you are interested in applying for. * Are you a Redding resident? * Do you work in Redding? * Do you own a business in Redding? * High School, College, Professional, Vocational, or Other Schools Attended. Please include Major or Field of Study, Dates Attended, Degree and Date of Degree.

Shasta High School – Redding, California Graduated: 1996 Southern Oregon University – Ashland, Oregon Field of Study: Business Management Degree Awarded: Bachelor of Science, 2002 Simpson University – Redding, California Field of Study: Accounting Degree Awarded: Bachelor of Arts, 2012 Certified Public Accountant (CPA) – State of California License Obtained: March 2014 List any position or office held in governmental agency, civic, or charitable organization. (This is not a requirement for appointment.) City of Shasta Lake – Finance Manager Shasta County Office of Education – Director of Operations City of Isleton – Chief Resilience Officer (Current)
* Please state why you want to become a member of this Board, Commission, or Committee.

I was born and raised in the Redding area and care deeply about the long term success of our community. With my background in accounting, public finance, and local government operations, I believe I can provide practical insight and thoughtful analysis to help support sound financial decision-making for the City. Serving on the Financial Advisory Committee would be an opportunity to give back to the community that helped shape me and to contribute my professional experience in a meaningful way.

Please provide any other information which you feel would be useful in reviewing your application I am a licensed California CPA with extensive experience in public sector finance, budgeting, and financial reporting. My career has focused on helping government organizations maintain fiscal stability, transparency, and accountability. I am committed to thoughtful collaboration and responsible stewardship of public resources.
* Reference Name 1
Jessica Bigby, CPA
* Reference 1 Phone and/or email
* Reference Name 2
Laura Redwine, CPA
* Reference 2 Phone and/or email
 Administrative Hearings Board
 Audit Committee
 Building Code Board of Appeals
 Community Development Advisory Committee
 Community Services Advisory Committee
 Financial Advisory Committee
 Economic Development Corp of Shasta County
 Planning Commission
 Shasta County Commission on Aging
 Shasta County Consolidated Oversight Board
 Shasta Mosquito & Vector Control District
 Shasta Public Library Citizens Advisory Co.
 Yes
 No
 Yes
 No
 Yes
 No
3/24/26, 8:17 AM Revize Online Forms
https://redding.rja.revize.com/reports/1156305 Packet Pg. 5582/3 Attachment: Financial Advisory Committee - Swanson, Kurt (5.1--City of Redding Audit & Financial Advisory Committee Appointments) Packet Pg. 559 Attachment: Financial Advisory Committee - Swanson, Kurt (5.1--City of Redding Audit & Financial Advisory Committee Appointments) RESOLUTION NO. 2026-009

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

ESTABLISHING AN AUDIT COMMITTEE
WHEREAS, the City Council desires to strengthen financial oversight, transparency, accountability, and risk management through the establishment of an Audit Committee; and WHEREAS, an Audit Committee provides a forum to review internal and external audit activities, recommend improvements, and ensure appropriate follow-up on findings; NOW, THEREFORE, BE IT RESOLVED by the City Council that an Audit Committee is hereby established with the following authority, purpose, composition, and operating provisions:

1. Authority
The Audit Committee is established by and derives its authority from the City Council. The Committee serves in an advisory capacity to the City Council and has no independent decision-making authority unless expressly delegated by Council action. The Committee may request information, presentations, and reports from City management, internal audit staff, and external auditors as necessary to fulfill its responsibilities.

2. Purpose
The purposes of the Audit Committee are to (1) enhance the integrity, transparency, and effectiveness of the City’s financial reporting, internal controls, and audit processes, (2) provide direction and guidance regarding internal audit function topic considerations, review findings, and when necessary review and discuss process improvements, (3) review external audit service contracts, including scope, vendor selection, performance, and results, (4) facilitate communication among the City Council, management, internal auditors, and external auditors; and (5) promote best practices in governance, risk management, and financial accountability.

3. Composition and Membership
The Audit Committee shall consist of two (2) voting members, one alternate voting member, and up to two (2) non-voting members. The voting members shall be the Mayor and Vice, who shall serve ex officio. The alternate member shall be the mayor pro tempore, who shall also serve ex officio.

In addition to the Mayor and Vice Mayor, up to two (2) advisory, non-voting members may be appointed to the committee by the Council. Non-voting members will be selected from the public and provide for continuity and institutional knowledge. The Mayor and Council will, to the extent practical, appoint members who possess (1) experience or education in accounting, auditing, finance, public administration, risk management, or a related field, (2) an understanding of governmental or publicsector financial practices, (3) the ability to analyze complex financial and audit information, and (4) a commitment to ethical standards, objectivity, and the public interest.

Non-voting members shall serve staggered two (2) year terms. All non-voting members must be nominated by the Mayor and appointed by vote of the Council, except that in 2026, one (1) of the two Packet Pg. 560 Attachment: Resolution No. 2026-009 - Establishing Audit Committee (5.1--City of Redding Audit & Financial Advisory Committee (2) non-voting members shall be nominated by the Vice Mayor to serve a one (1) year term, in order to allow for proper staggering.

Non-voting members shall comply with applicable ethics laws, conflict-of-interest requirements, and disclosure obligations and may be required to complete ethics, audit, or governance-related training as determined by the City. In addition to complying with all applicable conflict of interest laws, members shall not have any financial or business relationship with the City that would impair independence.

4. Staffing
The City Manager and Director of Finance, or their designees, shall attend Committee meetings and ensure staff availability to support Committee work to provide information regarding audit results and financial information. The Committee, however, shall not have authority to direct staff, and any Committee requests that may require the use of City resources shall be referred to the City Council.

5. Reporting
The Audit Committee shall report its observations, recommendations, and activities to the City Council on a regular basis, or as otherwise requested by the Council, and recommend to City Council acceptance of Annual Comprehensive Financial Report (ACFR) and external audit results.

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 3rd day of February, 2026, by the following vote:

AYES: COUNCIL MEMBERS: - AUDETTE, DHANUKA, MUNNS, RESNER, AND MUNNS NOES: COUNCIL MEMBERS: - NONE
ABSENT: COUNCIL MEMBERS: - NONE
ABSTAIN: COUNCIL MEMBERS: - NONE
__________________________________
MIKE LITTAU, Mayor
ATTEST: FORM APPROVED:
____________________________________ ____________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney Packet Pg. 561 Attachment: Resolution No. 2026-009 - Establishing Audit Committee (5.1--City of Redding Audit & Financial Advisory Committee a
iin11grem's N lor-joel xly { i 1.111 "my-IJUT 112 110 No] WHEREAS, The City Council desires to enhance fiscal transparency, community engagement, and long-term financial sustainability; and
WHEREAS, a Financial Advisory Committee provides informed, community- based perspectives on economic trends, budget priorities, and financial policy considerations; NOW, THEREFORE, BE IT RESOLVED by the City Council that a Financial Advisory Committee is hereby established with the following authority, purpose, composition, and operating provisions:

1. Authority
The Financial Advisory Committee (FAC) is established by and derives its authority from the City Council. The FAC serves solely in an advisory capacity and shall provide recommendations and observations to the City Council. The FAC shall have no independent decision- making authority and shall not direct City staff. The City Manager and Finance Director shall support the Committee by providing relevant financial information, analysis, and staff presentations.

2. Purpose
The purpose of the Financial Advisory Committee is to ( 1) provide advisory input to the City Council on budget development, financial priorities, and long-term fiscal sustainability, (2) review major financial assumptions, economic conditions, and community trends that may impact City revenues and expenditures, ( 3) offer community - informed perspectives on spending priorities in relation to adopted Council goals and community needs, ( 4) review staff -prepared materials intended for City Council consideration and provide non- binding feedback, and ( 5) strengthen transparency and public trust in the City' s financial decision- making process.

3. Composition and Membership
The Financial Advisory Committee shall consist of seven ( 7) members, and all decisions shall be made by a vote of a majority of the filled positions. Two (2) members of the Committee shall be members of the Redding City Council, who shall be nominated by the Mayor and appointed by vote ofthe Council. To provide for continuity, the Council Members on the Committee shall serve staggered two (2) year terms. The remaining five ( 5) members shall be appointed members of the public appointed by the Council. Following an open public application process, each Council Member shall suggest one person to the committee, and all appointments shall be made by vote of the full Council.

Packet Pg. 562 Attachment: Resolution No. 2026-010 - Establishing Financial Advisory Committee (5.1--City of Redding Audit & Financial Advisory Committee To the extent practicable, members of the committee shall reflect a broad cross- section of the local economy and community perspective. In selecting members of the committee, the Council shall endeavor to prioritize candidates in roles providing insight into purchasing behavior, spending trends, and the social and economic pulse of the community, such as major employers or key local industries, such as healthcare, retail, hospitality, construction, insurance, or financial services.

Candidates should also be considered for their financial background and expertise, such as CPAs, CFOs, CEOs, or senior financial professionals.

Community members appointed to the committee must comply with applicable ethics laws, conflict- of-interest requirements, and disclosure obligations and shall not have any financial or business relationship with the City that would impair independence. All members must be able to evaluate financial matters objectively and in the public interest, Community members on the Committee shall serve four (4) year terms, staggered to align with Council Member terms for continuity and institutional knowledge. Terms of each appointed member will end one year after the end of the term of each Council Member. Nothing shall prohibit a community from being reappointed following expiration of their terms, if approved by Council.

Should either of the two ( 2) Council Members appointed to the Committee vacate the office of City Council Member, they shall immediately and automatically vacate their seat on the Committee. Community Members on the Committee shall serve at the pleasure of the Council and may be removed by a vote thereof.

5. Meeting Schedule
The Financial Advisory Committee shall adopt a regular meeting schedule sufficient to meet the purposes and functions for which it is formed. Meetings may include review of materials and presentations staff intends to bring forward to the City Council. The Committee shall review budget priorities, community conditions, and adopted Council goals to inform advisory recommendations regarding the budget. Meeting schedule should account for increased frequency during biennial budget development years, including additional meetings aligned with the budget preparation process. All meetings shall be publicly noticed, open to the public, and include an opportunity for public comment in accordance with applicable open meeting laws, Packet Pg. 563 Attachment: Resolution No. 2026-010 - Establishing Financial Advisory Committee (5.1--City of Redding Audit & Financial Advisory Committee

6. Sunset Clause
The need for, structure, and functions of the Financial Advisory Committee shall be reviewed by the City Council after two ( 2) years of operation. The review shall consider data, outcomes, and overall effectiveness in meeting the Committee' s purpose. Following review, the City Council may continue, modify, or dissolve the Committee by Council action.

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 3rd day of February, 2026, by the following vote:

AYES: COUNCIL MEMBERS: - AUDETTE, DIIANUKA, MUNNS, RESNER, LITTAU NOES- COUNCIL MEMBERS. - NONE
ABSENT- COUNCIL MEMBERS. - NONE
ABSTAIN: COUNCIL MEMBERS: - NONE
Cd t -
MIKE LITTAU, Mayor
ATTEST: FO APPROVED:

ARLENE TIPTON, City Clerk
Packet Pg. 564 Attachment: Resolution No. 2026-010 - Establishing Financial Advisory Committee (5.1--City of Redding Audit & Financial Advisory Committee GI " Y C F
i CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: February 3, 2026 FROM: Kari Kibler, Interim City ITEM NO. 4. 1( a) Manager/ Personnel Director
APPROVED BY***
kkibler a cityofredding. gov
i le, niu im C ety\+[; n. x; ca' Wciacr } iae tzta 1' 23L2dP2 i kkibler@cityofredding. gov
SUBJECT: 4. 1( a)-- Adopt Resol utions for Audit Committee and Financial Advisory Committee
Recommendation
Authorize and approve the following:
1) Adopt Resolution establishing the City of Redding Audit Committee to provide structured oversight of internal and external audit activities; and 2) Adopt Resolution establishing the City of Redding Financial Advisory Committee to provide community- informed advisory input on budget development, financial priorities, and longterm sustainability.

Fiscal Impact
There is no direct fiscal impact associated with adoption of the attached resolutions. Committee members serve without compensation and meetings will be supported by existing staff resources within the City Manager' s Office and Finance Department.

AZteNnative Action
Council could provide alternative direction regarding one or both of the associated resolutions.

Background/ Analysis
On December 2, 2025, during item 9. 1( e) Council directed staff to prepar resolutions formalizing the Audit Committee and ensuring all activities are clearly defined and a new Financial Advisory Committee established. The goal of the committees was to strengthen the City' s financial governance framework, improving transparency, and enhancing long- term fiscal planning and accountability.

On January 20, 2026, during item 9. 1( c) Council discussed draft resolutions and provided elari ying language and feedbaek to staff regarding the committees, structure, eomposition, how Council and community members are appointed. The attached r solutions reflect the discussion Packet Pg. 565 Attachment: Previous Staff Report , February 3, 2026, item 4.1(a)--Adopt Resolutions for Audit Committee and Financial Advisory Committee Report to Redding City Council January 29, 2026
Re: 4.1( a)-- Adopt Resolutions forAudit Committee and Financial Advisory Committee Page 2 and changes. Below is an overview of each committee from the prior staff report.

Audit Committee Resolution
The City has maintained an Audit Committee since 2015 as a Brown Act committee; prior to 2015, the committee did not operate under Brown Act requirements. Currently, the Audit Committee meets annually, at a minimum, to review and discuss the results of the City' s annual external audit. In addition, Council Policy 425 delegates responsibility for internal audits to the City' s Finance Department and requires that the results of those audits be presented to the Audit Committee.

The proposed Audit Committee resolution formalizes a focused, Council led advisory body dedicated to audit and accountability functions. It provides a mechanism to initiate and review internal audits with a dedicated reporting mechanism. Key elements include:

Clear Authority and Role: The Audit Cormnittee serves in an advisory capacity to the City Council, providing structured oversight of internal audit activities, external audit services, and audit findings, without directing staff or assuming operational authority.

Council Leaders' p with Limited Membership: The Committee is composed of the Mayor and Vice Mayor as voting members, ensuring direct Council involvement and accountability. The resolution also allows for the optional inclusion of up to two nonvoting community members to provide additional expertise and continuity.

Continuity and Expertise: Staggered appointments and defined qualification criteria for community members are designed to preserve institutional knowledge and bring relevant audit, financial, or governance experience to the Committee' s work.

Regular, Transparent Meetings: Publicly noticed and open to public comment, provide a predictable forum for reviewing internal audit priorities and findings, external audit findings and performance, external audit contract considerations, and opportunities for process improvement.

Alignment with Best Practices: The Audit Committee structure reflects best practices in municipal governance by separating audit oversight from operational management while enhancing transparency and accountability
Financial Advisory Committee
The proposed Financial Advisory Committee ( FAC) resolution establishes a broader, community- facing advisory body focused on fiscal policy, budget priorities, and economic trends. Key elements include:

Advisory Role to Council: The FAC provides non-binding recommendations and perspectives to the City Council on budget development, financial priorities, and longterm sustainability, without decision- making authority or staff direction.

Balanced Composition: The Committee includes two Council Members appointed through the Mayor' s committee assignment process and five community members appointed by Council vote. This strueture balances elected- official oversight with diverse community and industry perspectives.

Industry-Based Expertise and Community Insight: Community member criteria emphasizes representation from major employers, local industries, and professions that understand spending patterns, economic conditions, and the social and emotional pulse of the community. Restrictions on confliets of interest and Council relationships preserve independence and credibility.

Packet Pg. 566 Attachment: Previous Staff Report , February 3, 2026, item 4.1(a)--Adopt Resolutions for Audit Committee and Financial Advisory Committee Report to Redding City Council January 29, 2026
Re: 4.1( a)-- Adopt Resolutions forAudit Committee and Financial Advisory Committee Page 3 Term Alignment and Continuity: Four-year staggered terms aligned with Council 1Vlember terms ensure continuity while maintaining accountability and periodic renewal of inembership.

Flexible, Budget- Aligned Meeting Cadence: The FAC is designed to meet strategically, often a limited number of times, to review materials staff intends to present to the Council, evaluate priorities, and provide feedback during budget development. Meeting frequency may increase during biennial budget cycles, with the FAC authorized to recommend cadence adjustments annually.

Sunset and Evaluation: A two- year sunset review requires the Council to evaluate the FAC' s effectiveness using data and outcomes, ensuring the FAC remains purposeful and aligned with Council priorities.

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

Council Priority/ City Manager Goals
Budget and Financial Management — " Achieve balanced and stable 10- year Financial Plans for all funds."
Communication and Transparency — "Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust."
Government of the 21st Century — `Be relevant and proactive to the opportunities and challenges of today' s residents and workforce. Anticipate the future to make better decisions today."
Attachments
Resolution Audit Committee
Resolution Financial Advisory Committee
Packet Pg. 567 Attachment: Previous Staff Report , February 3, 2026, item 4.1(a)--Adopt Resolutions for Audit Committee and Financial Advisory Committee RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING ESTABLISI3ING AN AUDIT COMMITTEE
WHEREAS, the City Council desires to strengthen financial oversight, transparency, accountability, and risk inanagelnent through the establishment of an Audit Committee; and WHEREAS, an Audit Coinmittee provides a forum to review internal and external audit activities, recommend improvements, and ensure appropriate follow- up on findings; NOW, THEREFORE, BE IT RESOLVED by the City Council that an Audit Committee is hereby established with the following authority, purpose, composition, and operating provisions:

1. Authority
The Audit Committee is established by and derives its authority from the City CounciL The Committee serves in an advisory capacity to the City Council and has no independent decision-making authority unless expressly delegated by Council action. The Committee may request information, presentations, and reports from City management, internal audit staff, and external auditors as necessary to fulfill its responsibilities.

2. Purpose
The purposes of the Audit Committee are to ( 1) enhance the integrity, transparency, and effectiveness of the City' s financial reporting, internal controls, and audit processes, ( 2) provide direction and guidance regarding internal audit function topic considerations, review findings, and when necessary review and discuss process improvements, ( 3) review external audit service contracts, including scope, vendor selection, performance, and results, ( 4) facilitate communication among the City Council, management, internal auditors, and external auditors; and ( 5) promote best practices in governance, risk management, and financial accountability.

3. Composition and Membership
The Audit Committee shall consist oftwo ( 2) voting members, one alternate voting member, and up to two ( 2) non- voting members. The voting members shall be the Mayor and Vice, who shall serve ex o cio. The alternate member shall be the mayor pro tempore, who shall also serve ex officio.

In addition to the Mayor and Vice Mayor, up to two ( 2) advisory, non- voting members may be appointed to the committee by the Council. Non- voting members will be selected from the public and provide for continuity and institutional knowledge. The Mayor and Council will, to the extent practical, appoint members who poss ss ( 1) experience or education in accounting, auditing, finance, public administration, risk management, or a related field, ( 2) an understanding of governmental or publicsector financial practices, ( 3) the ability to analyze complex financial and audit information, and( 4) a commitment to ethical standards, objectivity, and the public interest.

Non- voting members shall serve staggered two ( 2) year terms. All non- voting members must be nominated by the Mayor and appointed by vote of the Council, except that in 2026, one ( 1) of the two Packet Pg. 568 Attachment: Previous Staff Report , February 3, 2026, item 4.1(a)--Adopt Resolutions for Audit Committee and Financial Advisory Committee 2) non- voting members shall be nominated by the Vice Mayor to serve a one ( 1) year term, in order to allow for proper staggering.

Non-voting members shall comply with applicable ethics laws, conflict-of-interest requirements, and disclosure obligations and may be required to complete ethics, audit, or governance- related training as determined by the City. In addition to complying with al1 applicable conflict ofinterest 1aws, members shall not have any financial or business relationship with the City that would iinpair independence.

4. Staffing
The City Manager and Director of Finance, or their designees, shall attend Committee meetings and ensure staff availability to support Committee work to provide information regarding audit results and financial infonnation. The Committee, however, sha11 not have authority to direct staff, and any Committee requests that may require the use of City resources shall be referred to the City Council.

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 3rd day of February, 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIlY: COUNCIL MEMBERS:

MIKE LITTAU, Mayor
ATTEST: FORM APPROVED:

SHAIZLENE TIPTON, City Clerk CHRTSTIAN lYI. CURTIS, City Attorney Packet Pg. 569 Attachment: Previous Staff Report , February 3, 2026, item 4.1(a)--Adopt Resolutions for Audit Committee and Financial Advisory Committee RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING

ESTABLISHING A FINANCIAL ADVISORY COMMITTEE
WHEREAS, The City Council desires to enhance fiscal transparency, community engagement, and long-term financial sustainability; and
WHEREAS, a Financial Advisory Committee provides informed, community-based perspectives on economic trends, budget priorities, and financial policy considerations; NOW, THEREFORE, BE IT RESOLVED by the City Council that a Financial Advisory Committee is hereby established with the following authority, purpose, composition, and operating provisions:

1. Authority
The Financial Advisory Committee( FAC) is established by and derives its authority from the City Council. The FAC serves solely in an advisory capacity and sha11 provide recommendations and observations to the City Council. The FAC shall have no independent decision- making authority and sha11 not direct City staff. The City Manager and Finance Director sha11 support the Committee by providing relevant financial information, analysis, and staff presentations.

2. Purpose
The purpose of the Financial Advisory Committee is to ( 1) provide advisory input to the City Council on budget development, inancial priorities, and long-term fiscal sustainability, (2) review majar financial assumptions, economic conditions, and community trends that may impact City revenues and expenditures, ( 3) offer community-informed perspectives on spending priorities in relation to adopted Council goals and community needs, ( 4) review staff-prepared materials intended for City Council consideration and provide non-binding feedback, and ( 5) strengthen transparency and public trust in the City' s financial decision- making process.

3. Composition and Membership
The Financial Advisory Committee shall consist of seven ( 7) members, and all decisions shall be made by a vote of a majority of the filled positions. Two ( 2) members of the Committee shall be members of the Redding City Council, who shall be nominated by the 1Vlayor and appointed by vote ofthe Council. To provide for continuity, the Council Members on the Committee shall serve staggered two ( 2) year terms. The remaining five ( 5) members shall be appointed members ofthe public appointed by the Couneil. Following an open public application proeess, each Council Member shall suggest one person to the committee, and all appointments shall be made by vote of the full Council.

Packet Pg. 570 Attachment: Previous Staff Report , February 3, 2026, item 4.1(a)--Adopt Resolutions for Audit Committee and Financial Advisory Committee To the extent practicable, members of the committee shall reflect a broad cross- section of the local economy and community perspective. In selecting members of the committee, the Council shall endeavor to prioritize candidates in roles providing insight into purchasing behavior, spending trends, and the social and economic pulse of the community, such as major employers or key local industries, such as healthcare, retail, hospitality, construction, insurance, or financial services.

Candidates should also be considered for their fmancial background and expertise, such as CPAs, CFOs, CEOs, or senior financial professionals.

Community members on the Committee shall serve four (4) year terms, staggered to align with Council Member terms for continuity and institutional knowledge. Terms of each appointed member will end one year after the end of the term of each Council Member. Nothing sha11 prohibit a community from being reappointed following expiration of their terms, if approved by Council.

5. Meeting Schedule
The Financial Advisory Committee shall adopt a regular meeting schedule sufficient to meet the purposes and functions for which it is formed. Meetings may include review of materials and presentations staff intends to bring forward to the City Council. The Committee shall review budget priorities, community conditions, and adopted Council goals to inform advisory recommendations regarding the budget. 1Vleeting sch dule should account for increased frequency during biennial budget development years, ineluding additional meetings aligned with the budget preparation process. A11 meetings shall be publicly noticed, open to the public, and include an opportunity or public comment in accordanee with applieable open meeting laws.

Packet Pg. 571 Attachment: Previous Staff Report , February 3, 2026, item 4.1(a)--Adopt Resolutions for Audit Committee and Financial Advisory Committee

6. Sunset Clause
The need for, structure, and functions of the Financial Advisory Coinmittee shall be reviewed by the City Council after two ( 2) years of operation. The review shall consider data, outcomes, and overall effectiveness in meeting the Committee' s purpose. Following review, the City Council may continue, modify, or dissolve the Committee by Council action.

I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting ofthe City Council ofthe City of Redding on the 3rd day of February, 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

MIKE LITTAU, Mayor
ATTEST: FORM APPROVED:

SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney Packet Pg. 572 Attachment: Previous Staff Report , February 3, 2026, item 4.1(a)--Adopt Resolutions for Audit Committee and Financial Advisory Committee GI " Y C F
i CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: January 20, 2026 FROM: Kari Kibler, Interim City ITEM NO. 9. 1( c) Manager/ Personnel Director
APPROVED BY***
kkibler a cityofredding. gov
i le, niu im C ety\+[; n. x; ca' Wciacr } iae tzta 1' l6l2dP2 i kkibler@cityofredding. gov
SUBJECT: 9. 1( c)-- Consider Resol utions for establishment of an Audit Committee and Financial Oversight Committee for the Cit of Reddin .

Recommendation
Authorize and approve the following:
1) Adopt Resolution establishing the City of Redding Audit Committee to provide structured oversight of internal and external audit activities; and 2) Adopt Resolution establishing a City of Redding Financial Advisory Committee to provide community- informed advisory input on budget development, financial priorities, and long- term sustainability.

Alternative Action
Council could provide alternative direction relative to the resolutions and approval of the two committees.

Background/ Analysis
On December 2, 2025, the City Council considered Item 9. 1( e), which focused on strengthening the City' s financial governance framework, improving transparency, and enhancing long- term fiscal planning and accountability. During that discussion, Council expressed interest in mare formalized struetures to support:

Proactive finaneial oversight;
Independent review of audit activities and findings; and Inereased community engagement and perspective in budget and financial policy discussions.

Packet Pg. 573 Attachment: Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee Report to Redding City Council January 16, 2026
Re: 9. 1( c)-- Adopt Resolutions Re: Audit Committee& Financial Oversight Committee Page 2 Item 9. 1( e) highlighted the increasing complexity of municipal finance, the importance of aligning financial decisions with long- term sustainability, and the value of structured advisory bodies to assist the City Council in meeting its fiduciary responsibilities. Council direction at that time emphasized the need for clearly defined roles, strong governance practices, and advisory cominittees that complement, rather than duplicate, existing staff and Council responsibilities.

In response, staff has prepared two companion resolutions for Council consideration: one establishing an Audit Committee and one establishing a Financial Advisory Committee.

Together, these committees are intended to strengthen the City' s overall financial governance framework.

Audit Committee Resolution
The City has maintained an Audit Committee since 2015 as a Brown Act committee; prior to 2015, the committee did not operate under Brown Act requirements. Currently, the Audit Committee meets at least annually to review and discuss the results of the City' s annual external audit. In addition, Council Policy 425 delegates responsibility for internal audits to the City' s Finance Department and requires that the results of those audits be presented to the Audit Committee.

Clear Authority and Ro1e: The Audit Committee serves in an advisory capacity to the City Council, providing structured oversight of internal audit activities, external audit services, and audit findings, without directing staff or assuming operational authority.

Council Leadership with Limited Membership: The Committee is composed of the Mayor and Vice Mayor as voting members, ensuring direct Council involvement and accountability. The resolution also allows for the optional inclusion of up to two nonvoting community members to provide additional expertise and continuity.

Continuity and Expertise: Staggered appointments and defined quali cation criteria for community members are designed to preserve institutional knowledge and bring relevant audit, financial, or governance experience to the Committee' s work.

Regular, Transparent Meetings: Publicly noticed and open to public comment, provide a predictable forum for reviewing internal audit priorities and findings, external audit fmdings and performance, external audit contract considerations, and opportunities for process improvement.

Packet Pg. 574 Attachment: Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee Report to Redding City Council January 16, 2026
Re: 9. 1( c)-- Adopt Resolutions Re: Audit Committee& Financial Oversight Committee Page 3 The Audit Committee resolution reflects the existing audit committee requirements and discussion council had under item 9. 1( e) on December 2, 2025, by formalizing audit oversight regarding internal and external audit processes.

Financial Advisory Committee
The proposed Financial Advisory Committee ( FAC) resolution establishes a broader, cominunity- facing advisory body focused on fiscal policy, budget priorities, and economic trends. Key elements include:

Advisory Role to CounciL• The FAC provides non- binding recommendations and perspectives to the City Council on budget development, financial priorities, and long- term sustainability, without decision- making authority or staff direction.

Balanced Composition: The Committee includes two Council Members appointed through the Mayor' s committee assignment process and five community members appointed by Council vote. This structure balances elected- official oversight with diverse community and industry perspectives.

Industry- Based Expertise and Community Insight: Community member criteria emphasize representation from major employers, local industries, and professions that understand spending patterns, economic conditions, and the social and emotional pulse ofthe community. Restrictions on conflicts of interest and Council relationships preserve independence and credibility.

Term Alignment and Continuity: Four- year staggered terms aligned with Council Member terms ensure continuity while maintaining accountability and periodic renewal of inembership.

The FAC directly supports the objectives discussed in Item 91( e) by adding structured, community- informed financial insight while maintaining clear boundaries between advisory input, staff analysis, and Council decision- making.

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

Packet Pg. 575 Attachment: Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee Report to Redding City Council January 16, 2026
Re: 9. 1( c)-- Adopt Resolutions Re: Audit Committee& Financial Oversight Committee Page 4 Council P ioNity/ City Manager Goals
Budget and Financial Management — " Achieve balanced and stable 10- year Financial Plans for all funds."
Communication and Transparency — "Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust."
Government of the 215t Century — "Be relevant and proactive to the opportunities and challenges of today' s residents and workforce. Anticipate the future to make better decisions today."
Attachments
Draft Resolution - Audit Committee Information
Draft Resolution - Financial Oversight Committee Information Packet Pg. 576 Attachment: Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY OF REDDING CITY COUNCIL

ESTABLISHING AN AUDIT COMMITTEE
WHEREAS, the City Council desires to strengthen financial oversight, transparency, accountability, and risk inanagelnent through the establishment of an Audit Committee; and WHEREAS, an Audit Coinmittee provides a forum to review internal and external audit activities, recommend improvements, and ensure appropriate follow-up on inc ings; NOW, THEREFORE, BE IT RESOLVED by the City Gauncil that an Audit Committee is hereby established with the following authority, purpose, compositic n, and operating provisions:

1. Authority
The Audit Committee is established by and derives its authority from the City Cauncil. The Committee serves in an advisory capacity to the City Council and has no independent deci ion- making authority unless expressly delegated by Council action. The Committ e may request informati n, presentations, and reports from City management, intemal audit staff, and external auditors as necessary to fulfill its responsibilities.

2. Purpose
The purpose of the Audit Committee is to:

Enhance the integrit, transparency, and effectiveness of the City' s financial reporting, internal contrals, and audit processes;
Pro id direction and guidance regarding internal audit function topic considerations, review findings, and when necessary reuiew and disctiss process improvements; Review external audit service contracts, including scope, vendor selection, performance, and results;
Facilitate e nmunication among the City Council, management, internal auditors, and external auditors; and
Promote best practices in governance, risk management, and financial accountability.

3. Composition and Membership
A. Voting Members
The Mayor and Vice Mayor shall serve as voting members of the Audit Committee.

B. Non-Voting Community 1Vlembers ( Optional/ Advisory) The Committee may include up to two ( 2) community members who serve in a non- voting, advisory capacity.

Community members shall be appointed jointly by the Mayor and Vice Mayor.

Packet Pg. 577 Attachment: Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee Appointments are intended to provide continuity and institutional knowledge over multiple years.

Terms should be for two years with the first term appointed by the mayor being for 3 years to provide proper staggering thereafter to ensure every other year a new committee member may be considered.

C. Criteria for Community Members
Community members should, to the extent practicable, possess:

Experience or education in accounting, auditing, finance, public administration, risk management, or a related field;
An understanding of governmental or public- sector in ncial practices; The ability to analyze complex financial and audit information; A commitment to ethical standards, objectivit, and the public interest.

4. Terms of Service
The Mayor and Vice Mayor shall serve on the Committ e oncurrent with their elected terms or Council designation.

Community members shall serve terms of two ( 2) or for the first appointment one of a three ( 3) years, as determined at appointment, t' facilitate staggered terms.

Community members may be reappc inted, subject to Mayor and Vice Mayor discretion.

5. Notes and Requirements for Non- Council ( Comrnunity) Members Community members serve in an advisory, non- voting capacity only.

Members must cornply with applicable ethics laws, conflict- of-interest requirements, and disclosure nbligations.

Members shall no have any financial or business' relationship with the City that would impair independence.

Mernb rs may be required to '' c mplete ethics, audit, or governance- related training as determined by the City.

6. Staff ParticYpation
The City Manager and Director ofFinance, or their designees, shall attend Committee meetings and ensure staff availabiiity to support Committee work.

Staff participation is necessary to provide information regarding audit results and financial information; staff shall not be directed by the Committee.

7. Meeting Schedule and Cadence
The Audit Committee shall annually adopt a meeting schedule.

Meetings sha11 be publicly noticed, open to the public, and provide opportunity for public comment in accordance with applicable open meeting laws.

Packet Pg. 578 Attachment: Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee Typical Agenda Topics May Include:

Training and education related to auditing, financial oversight, and governance; Review of internal audit plans, findings, recommendations, and process improvements; Evaluation of modifications to internal audit practices or scope; Review and evaluation of external audit contracts, including auditor selection, performance, feedback, and potential modifications;
Review of third- party audit reports and external audit findings, including management responses and corrective actions.

8. Reporting
The Audit Cormnittee shall report its observations, r commendations, and activities to the City Council on a regular basis, or as otherwise requeste by the Council.

Recommend to Council acceptance of Annual Comprehensive Financial Report ( ACFR) and external audit results.

I HEREBY CERTIFY that the foregoing ordinance was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 20th day of January, 026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

MIKE LITTAU, Mayor
ATTEST: FORM APPROVED:

SHARLENE TIPTON, ity Clerk CHRISTIAN M. CURTIS, City Attorney Packet Pg. 579 Attachment: Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL ESTABLISHING A FINANCIAL

ADVISORY COMMITTEE
WHEREAS, The City Council desires to enhance fiscal transparency, community engagement, and long-term financial sustainability; and
WHEREAS, a Financial Advisory Committee provides informed, community-based perspectives on econoinic trends, budget priorities, and financial policy considerations; NOW, THEREFORE, BE IT RESOLVED by the City Council that a Financial Advisory Committee is hereby established with the following authority, purpose, composition, and operating provisions:

1. Authority
The Financial Advisory Committee ( FAC) is es ablished by and derives its authority from the City Council. The FAC serves solely in an advisory ca aacity and sha11 provide recommendations and observations to the City CounciL The FAC shall have no independent decision- naking authority and shall not direct City staff. The City Manager and Finance Director shall support the Committee by providing relevant financial information naly;sis, and staffpresentations.

2. Purpose
The purpose of the Financia Ad isory Commi tee is t:

Provide advisory in ut to the City Council on budget development, financial priorities, and long- term fiscal sust inability;
Revie u major financial assumptions, econornic conditions, and community trends that may impact City revenues and expenditures;
ffer community-informed perspectives on spending priorities in relation to adopted Council goals and community needs;
Review st ff-prepared m terials intended for City Council consideration and provide nonbinding f edback; and Strengthen tr nsparency and public trust in the City' s financial decision-making process.

3. Composition and Membership
All Members of the FAC shall have voting rights.

A. Council Members
The Committee shall include two ( 2) members of the City Council, appointed by the Mayor through the Council committee assignm nt process.

B. Community Members
The Committee sha11 include five ( 5) community members.

Packet Pg. 580 Attachment: Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee Each Council Member shall be encouraged to recommend qualified applicants.

Each Council Member shall provide one recommendation for inclusion on the Committee.

Community members shall be appointed by majority vote ofthe City Council ollowing an open application and selection process.

C. Member Quaiifications and Criteria
Community members should, to the extent practicable, reflect a broad cross- section of the local economy and community perspective. Appointments made by each Council Member should consider the following as potential experience, expertise, and/or background:

Major employers or key local industries;
Healthcare, retail, hospitality, construction, insurance, ar financial services; Financial expertise such as CPAs, CFOs, CEOs, or seniar financial professionals; and Roles that provide insight into purchasing behavior, spending trends, and the social and economic pulse of the community.

Community members must:

Have no conflict of interest or opportunity for m netary gain related to City decisions; Have no immediate family or household relationship with a sitting Council Member; Be able to evaluate financial and policy issues objectively and in the public interest.

4. Terms of Service
A. Council Members
Council Members sh. l ser e . the Commi:xtee concurrent with their Council committee assignments or at the pleasure af' he M yor and Gity Council.

B. Comrnunity Members
Communit members shall serve four 4) year terms, staggered to align with Council Member terms for continuity and institutional knowledge. Terms of each appointed member will end one year after'the end of the term of each council member.

Community members may be reappointed following expiration of their terms, subject to Council approval.

5. Notes and Requirements for Non- Council ( Community) Members Community members serve without compensation unless otherwise authorized by the City Council.

Members must comply with a11 applicable ethics laws, conflict- ofinter st requirements, and disclosure obligations.

Members shall not have financial interests, contractual r lationships, or other affiliations that could impair independence.

Members are expected to attend meetings regularly and review materials in advance.

Packet Pg. 581 Attachment: Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee

6. Staff Participation
The City Manager and Finance Director, or their designees, shall attend Committee meetings and ensure staff availability to support Committee work.

Staff participation is intended to facilitate information sharing and discussion; staff sha11 not be directed by the Committee.

7. Meeting Schedule and Cadence
The Financial Advisory Committee shall meet as needed, generally a limited number of times during each fiscal cycle.

Meetings inay include review of materials and presentations staff intends to bring forward to the City Council.

The Committee shall review budget priorities, community conditions, and adopted Council goals to inform advisory recommendations regarding the budget.

Meeting cadence may increase during biennia budget developrnent years, including additional meetings aligned with the budget preparatian process.

Annually, the Committee may recommend cl anges to its meeting cade ce to the City Council for consideration.

All meetings shall be publicly noticed, open to the public, and include an oppt rtunity for public comment in accordance with applicable open meeting laws.

8. Sunset Clause
The Financial Adc iso y Ct mmittee sha11 be xeviewed by„the City Council after two (2) years of operation.

The review shall co isider data, outcomes, and overall effectiveness in meeting the Committee' s purpose.

Following re iew, the City Council may continue, modify, or dissolve the Committee by Council action.

I HEREBY CERTII'Y that the foregoing ordinance was introduced and adopted at a regular meeting of the City Counci ofthe City of Redding on the Oth day of January, 2026, by the following vote:

AYES: COUNCiL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBEItS:

ABSTAIlY: COUNCIL MEMBERS:

MIKE LITTAU, Mayor
ATTEST: FORIVI APPROVED:

SHARLENE TIPTON, City Clerk C IRISTIAN M. CURTIS, City Attorney Packet Pg. 582 Attachment: Previous Staff Report, January 20, 2026, item 9.1(c)--Adopt Resolutions Re_ Audit Committee & Financial Oversight Committee GI " Y C F
i CITY OF REDDING

REPORT TO THE CITY COUNCIL
MEETING DATE: December 2, 2025 FROM: Steve Bade, Interim City ITEM NO. 9. 1( e) Manager
APPROVED BY***
sbade@cityofredding. org
t, re a , 7 t l if2{i/242+
sbade@cityofredding. org
SUBJECT: 9. 1( e)-- Consider establishment of Financial Oversight Committee Recommendation
Authorize and approve the following:
1) Authorize staff to draft a resolution formalizing the Audit Committee structure establishing the composition of inembers, term of inembers, purpose( s) of the committee include existing delegation under Council Policy 425), and meeting schedule; and 2) Authorize staff to draft a resol ution establishing the Financial Oversight Committee structure, specifying the composition of inembers, term of inembers, purposes of committee, and meeting schedule.

Fiscal Impact
There is no impact to the General Fund with this action.

AZteNnative Action
City Council ( Council) could provide staff with alternate direction.

Background/Analysis
On October 22, 2025, the Council directed staff to return with an item considering the creation of a Financial Oversight Committee. Council specified that the committee would be forwardlooking but has not yet indicated the specific scope or function of that committee. Staff has reviewed models from other cities as well as articles published on this topic and are bringing those forward for Council' s consideration. Staff is requesting further direction as to the scope, composition, terms, and meeting sehedule. Additionally, staff has reviewed the documentation regarding the existing Audit Committee structure and is recommending that Council consider formalizing that committee' s role to provide greater clarity going forward.

Packet Pg. 583 Attachment: Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee (5.1--City of Redding Audit & Report to Redding City Council November26, 2025
Re: 9. 1( e)-- Establishment ofFinance Advisory Committee Page 2 Models from Other Cities
Staff has reviewed how other cities have formed and maintained Financial Oversight Committees and have identified two major categories of committees. First, similar to the City of Redding City), many jurisdictions have audit committees responsible for reviewing audits of past expenditures. These committees may review both internal and external audit results in addition to setting audit priorities and identifying areas for future audits. In larger jurisdictions, the internal and external audit functions may be given to separate committees, which work in conjunction with a dedicated City Auditor or City Controller position. Examples of this structure include Las Vegas, San Francisco, and San Jose. Presently, the City combines both the internal and external audit functions into a single Audit Colnmittee, which is a standing committee of the Council. The City does not have an internal auditor or controller position, these types of duties have been delegated to the Financial Services Department through Council Policy 425.

Second, several jurisdictions employ a different kind of committee that participate in the budgeting process by reviewing projections on future revenues and/ or expenses. The purpose of these committees is to provide additional technical expertise that can assist in budgetary accuracy and transparency. For example, the City of Las Vegas engages a " Financial Advisory Committee" that includes local stakeholders such as economists, hoteliers, and representatives from the homebuilders' association. Per that city' s budget summary, these members provide perspectives into the city' s revenue projections and sometimes, expenditure assumptions." By including representatives from key local industries, this type of committee can provide insight into local economic trends that will impact projections in revenue. This may present advantages over the City' s current practice, which is to rely on projections from a consulting rm and
executive staff, as reviewed, adjusted and approved by Council.

These two different types of committees are not mutually exclusive. In the Las Vegas example, that city utilizes both a Financial Advisory Committee looking at revenue assumptions in upcoming budgets and an Audit Oversight Committee to review audits of past expenditures.

Each functionprospective and retrospective— provides a different benefit. As such, the committees have different needs in terms of inember expertise, meeting schedule, and structure.

In deciding whether to modify the existing Audit Committee and/ or create a committee to assist in the budget process, the Council may want to consider how the specific objectives of each type of committee meet the needs and resources ofthe City.

As the staff was researching information for this report, a very informative article, printed in Weste n City, a monthly magazine provided by The League of California Cities, was located and is attached for reference. The article states, " These committees, composed of community members, aim to increase city government transparency and build accountability". It goes on to warn of the potential pitfalls, highlighting that clear direction is needed to avoid duplicating staff work, creating competing priorities and workload or staff, and/ or challenging the governance and authority of the Council. The article recommends establishing clear steps to avoid the pitfalls, these step include; articulating clear direction from Council on the mission and role of the committee; setting clear roles and responsibilities, adopt a standing committee resolution or code of conduct for the committee, provide training and/ or orientation to all involved, appoint a city council member and/ or staff liaison; clearly delineate the 1eve1 of committee staff support to be provided; consider sunset provisions; and regularly review the purpose and mission of the committee.

Packet Pg. 584 Attachment: Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee (5.1--City of Redding Audit & Report to Redding City Council November26, 2025
Re: 9. 1( e)-- Establishment ofFinance Advisory Committee Page 3 Audit Committee
The City currently has an Audit Committee, which is comprised of the Mayor and Vice- Mayor.

As a standing committee ofthe Council, the Audit Committee is a Brown Act body with publicly noticed meetings. Staff did not locate any original organizing documents, but based on the review of agendas, the Audit Committee meets regularly to consider the results of the City' s annual external audit. The Audit Committee then advances the results of the annual external audit for consideration by the CounciL The committee also meets and considers modifications to audit contracts, including extensions, and the selection of new auditors. Additionally, the City currently tasks the Audit Committee with reviewing all internal audits and setting the priorities for future internal audits.

Staff is recommending a resolution formalizing the structure and scope of the existing Audit Committee. Council Policy 425 provides the delegation of the authority for Internal Audits to Finance and reporting of the results of the internal audits to the Audit Committee. There is no clear definition or documented role of the Audit Committee besides this mention in Council Policy 425 and this includes the external audits aspect. This is most likely the result of functions being delegated to the Committee at different times, but it would be helpful to maintain a single document outlining a11 of the Committee' s functions and structure. Moreover, as a Brown Act Body, the Audit Committee is required to have a regular meeting schedule, and including that schedule in the resolution would be helpful for organizational purposes. Prior to bringing forward a resolution, staff will need to confirm whether the Council chooses to retain the current Audit Committee structure or wishes to revisit that issue as part of the larger fiscal oversight discussion.

Financial Oversight Committee
The City does not currently have a committee that provides forward-looking recommendations on revenue and expense projections to assist in the City' s budget process. If the Council is interested in creating a committee similar to what is used in other cities, staff can draw from those examples to bring a proposed resol ution for the Council to consider. These would likely involve some customization for the City. Once again, using the City of Las Vegas as our example, representatives from specific industries that drive revenue in their jurisdiction are appointed to serve. A similar committee in the City may or may not look to the same industries as a driver of local revenue and economic activity.

Similar issues would be meeting schedule and appointment process. Each city typically uses its own appointment structure. In the City of Redding, this involves appointments made by the Mayor, subject to approval of the full Council, with terms staggered in order to allow for a diversity of appointments. Staff would prepare any draft resolution with this same model unless otherwise directed by the Council. Additionally, the Council wi11 need to decide on a regular meeting schedule for the committee, but that may be best decided after the Council determines how it may change the budget workshop process.

Other Options
The options presented represent the models that staff has identified from other jurisdictions, but other structures are possible. Ifthese options do not meet the Council' s needs, it may be prudent to start by identifying the policy goals that the Council wants to address so that structure or alternative proposals can be derived from there.

Packet Pg. 585 Attachment: Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee (5.1--City of Redding Audit & Report to Redding City Council November26, 2025
Re: 9. 1( e)-- Establishment ofFinance Advisory Committee Page 4 Environmental Review
This item is not a project as defined under the California Environmental Quality Act, and no further action is required.

Council PNio^ ity/ 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."
Government of the 21st Century — `Be relevant and proactive to the opportunities and challenges of today' s residents and workforce. Anticipate the future to make better decisions today."
Attachments
City Council Policy 425 - Internal Audit Function
Finance Advisory Committees_ Tips and Traps - Western City Magazine Packet Pg. 586 Attachment: Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee (5.1--City of Redding Audit &

CITY OF REDTIING, CALIFORNIA
Cl T.1NCIL POLICY

SUBJECT RESOLUTION POLICY EFFECTIVE
pAGE

NUMBER NUMBER DATE

INTERNAL AUDIT FLTNCTION
2006- 40 425 3- 21- 06 1 of 1

BACKGROUND
City management is re`'' o ty Council for its performance. Whi1e management is primarily responsible for the C erformance a S internal controls, the City Council is ultimately responsible for ensuring that mana nt fulfills that res sibility. The quality of the City' s control environment can be improved by estab ng an internal audit` tion. The internal audit function would help in monitoring the effectiveness of t, x, ity' s policies and ' edures. Implementing an internal audit function should also enhance the City' s' ctiveness in accomplishing its goals and objectives. The internal audit function can be provided by Financ P vision personneL The Finance Division has qualified staff who have supervised, planned and/ or perfo d the '' ssist the City Council in its responsibility to oversee management' s performan{ u arl' g
tt` rnal controls, the Finance Division will not only report to the City Manager, but also direc ly e Audlt Ct lttee regarding its internal control procedures.

PURPOSE
It is City Council' s desire to establish ; idlt t mternal audit function would help in monitoring the effectiveness ofthe City' s policies and ures. Qu" iedpersonnel exist within the Finance Division to perform some of the internal audit fun'' To improve City' s internal control struct ure the Finance Division is assigned the responsibility o ming the in 1 auc function as workload permits.

To help enhance the Division' s independence i n will re orm,; o the City Manager and Audit Committee at least on an annual basis.

POLICY s
u,
It is the policy of the City Council of the City ofRedding tha the Fin`' t n will be responsible for the internal audit function of the City. Due to the limited sta' e to work on internal audit items, priorities will be set by the Finance Division as to the work t" eYformed. However, at least annually the Finance Division will report their internal audit priorities to the Audit Committee and the Audit Committee may approve or change those priorities. Annually, the Finance Division will also report the results oftheir internal audit work to the City Manager and ti e Audit Committee.

Packet Pg. 587 Attachment: Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee (5.1--City of Redding Audit & 5>
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Melissa Kuehne is communications and development manager for the Institute for Local Government; she can be reached at : a°- rzc c c,- l; ac°:.

Packet Pg. 588 Attachment: Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee (5.1--City of Redding Audit & In today's environment of the 24- hour news cycle, social media and " fake news," cities throughout California are working hard to engage their communities and strengthen trust in local government. Residents increasingly question decisions made at all levels of government part.icularly those related to use of taxpayer dollars and financial decisions. To help address such concerns, many cities are turning to finance advisory committees.

These committees, composed of community members, aim to increase city government transparency and build accountability. Including the community in the decisionmaking process beyond participating in elections and city council meetings helps people better understand the types of decisions made at the local level, the trade- offs to consider and how city councils arrive at final decisions.

Involving residents in meaningful, inclusive and responsive ways benefits the city and the community alike," says Tony Dahlerbruch, city manager of Palos Verdes Estates. " Advisory committees can serve as a conduit between the city and community, which leads to increased transparency and trust."
Avoiding Unintended Consequences: Issues to Consider
Finance advisory committees can yield many benefits, but they can also generate unintended consequences if not carefully designed and managed. Without clear direction and strict oversight, a city runs the risk of the finance advisory committee duplicating staff work and challenging the governance and authority of the city council. Such comrnittees are rnost effective when they are a conduit for residents serving in an advisory capacity to the city council to share opinions and offer recommendations — and least effective when they duplicate the efforts of the city's finance director and Finance Department.

Committees that duplicate efforts can also create competing priorities for staff. When the committee's purpose and tasks are not clearly articulated, cities run the risk of committee members attempting to direct staff and drive projects. This potentially puts staff in an awkward situation where the committee issues directions that conflict with council-adopted goals and priorities and/ or the directions of executive staff.

Packet Pg. 589 Attachment: Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee (5.1--City of Redding Audit & The amount of staff time needed to manage the committee is another consideration. It's likely that staff will need to respond to questions and requests from committee members and provide support for additional public hearings and meetings. Depending on the number of ineetings and the committee's needs, this can significantly strain already stretched city staff.

Another problem can arise if the committee is given the authority to develop or recommend a budget because the committee may reach a conclusion that differs — perhaps radically — from the direction that the council deems to be the best option. This creates conflict between the council and the committee and, by extension, the residents of the community. In such a situation, if the council opts not to follow the committee' s direction, it can undermine the chances of achieving the primary goal of increasing trust between the city and community. i
Best Practices
To avoid these potential pitfalls, cities can take the
following steps.

Articulate a clear mandate from the city council about
the committee' s mission and role in the
decisionmaking process. This can avoid " mission creep" and support the efforts of staff and the council to keep the committee — as a whole and its individual mernbers —
focused and on task.

Set clear roles and responsibilities. Providing clarity to committee members on their charge and the decisionmaking process is critically important.

Committees are not in place to direct staff, duplicate staff efforts or make final policy or operational decisions. Their purpose is to serve in an advisory capacity to the city council, which in turn makes final policy decisions. If a committee crosses the line into the operations, activities and recommendations that are the responsibility of the council or staff, the council risks unintentionally abdicating its role, losing control and creating unnecessary controversy.

Packet Pg. 590 Attachment: Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee (5.1--City of Redding Audit & Adopt a standing committee resolution or code of conduct for the committee.

This helps formalize the committee' s role and responsibilities and provides a mechanism for staff and the city council to keep the committee on track.

Provide training and/ or orientation for new committee members. Standing committees are subject to the Ralph M. Brown Act. Thus, it may be wise to provide training to committee members on the laws governing open meetings, AB 1234 ethics education and/ or conflicts of interest. City officials may also want to consider conducting an orientation for new committee members that covers:

The role and responsibilities of the committee;
Applicable city ordinances and ethics laws;
Adopted codes of conduct; and
Staff or council contacts.

It may also be helpful to consider any unique qualifications and subject- matter knowledge or expertise that may be needed on the committee and to seek those skills in the recruitment process. When recruiting members for a finance advisory committee, the city may require applicants to have finance, investment or banking experience; however, such private- sector experience differs significantly from public- sector finance, and committee members will still require training and oversight.

The City of Los Altos Hills provides training and orientation for all new committee members and has adopted a code of conduct for all appointed commissioners and committee members," says Carl Cahill, city manager for Los Altos Hills. " This allows us to manage expecta ions and work more collaboratively with our advisory committees." Appoint a city council and/ or staff liaison. This individual can report back to the city council and/ or executive staff, answer questions for the committee and help keep the committee focused on its mission.

Packet Pg. 591 Attachment: Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee (5.1--City of Redding Audit & Clearly delineate the level of committee staff support to be provided. Make certain that adequate staff support will be provided for the advisory committee and be specific about the limits of such support.

Have a sunset provision or regularly review the committee' s purpose and mission. If the committee has a narrow scope of duties, it may be appropriate to limit how long the committee exists. Periodically reviewing the purpose or mission of a standing committee is also advisable. Has its charge been accomplished? Is its purpose still relevant or does it need to be re- examined?
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Taking the Long View
In general, it's good to have more community participation in local government through advisory committees and other means," says Rod Gou1d, retired city manager of Santa Monica.

However, problems arise when the committees aren't provided the necessary training, clarity of direction, support and oversight to complete their mission or goals." Packet Pg. 592 Attachment: Previous Staff Report, December 2, 2025, item 9.1(e)--Establishment of Finance Advisory Committee (5.1--City of Redding Audit & When carefully executed and properly functioning, finance advisory committees can build trust in local government, help a city understand the community' s values and priorities and foster leadership development.

Cities also employ other means of engaging residents on fiscal matters. The Institute for Local Government offers a number of resources to help local governments successfully involve their communities in budgeting and finance issues and plan productive public meetings. See " Tools to Engage Your Community in the Budgeting Process" on page 9 for tips and approaches to that engagement.

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Packet Pg. 594 Attachment: Minutes - Special City Council Meeting of October 22, 2025 (5.1--City of Redding Audit & Financial Advisory Committee Appointments)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept the City of Redding Electric Utility’s Fiscal Year 2025-26 Third Quarter Financial Report and Industry Activities Update.

Fiscal Impact
No fiscal impact is associated with the requested action.

Alternative Action
The City Council (Council) may reject staff's recommendation and provide alternative direction.

Background/Analysis
The attached March Financial Report shows that Redding Electric Utility (REU) outperformed budget projections in Net Operating Revenues for the first nine months of the fiscal year. The favorable variance is primarily driven by the timing of expenses and deferred activities, with additional contributions from modestly higher revenues and lower Power Cost and Generation/System Operations and Maintenance (O&M). These timing differences are temporary and are expected to align with budgeted assumptions in future reporting periods.

Although unrestricted reserves decreased by approximately $5.1 million through March, the Utility anticipates approximately $2.8 million in reimbursements in May for third-quarter capital outlays. The cash reserve balance remains in compliance with the Council’s Financial Management Policy.

MEETING DATE: May 19, 2026
ITEM NO. 9.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(b)--Consider Redding Electric Utility's Quarterly Financial Report and Industry Activities Update.

Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 595
Report to Redding City Council May 13, 2026
Re: 9.5(b)--Electric Utility's Financial Report - 3rd Quarter Page 2 Revenue
Billed retail revenue through March was $2,327,795 (2.1 percent) below budget. Although overall system energy usage remained generally on target for the period, the variance in retail revenue is primarily attributable to timing differences between energy consumption and billing cycles, as meter read schedules do not align perfectly with calendar months. As a result, a portion of usage during the period will be reflected in subsequent billing cycles. Minor variations in customer usage patterns also contributed to the difference and are within expected ranges.

Total wholesale sales were $2,114,819 (18.2 percent) above budget, reflecting favorable market conditions and increased wholesale market activity.

Miscellaneous income was $1,451,889 (101.9 percent) above budget, primarily driven by $1.1 million in fiscal agent investment income recorded for July 2025 through February 2026 related to Electric Bond trustee accounts. These earnings are generated on funds held by the trustee and increase restricted cash balances; while recorded as revenue, they are associated with bondrelated accounts rather than operating activities.

As a result, overall operating revenue was $1,238,913 (1.0 percent) above budget. Operating revenue after energy costs was $3,489,169 (5.6 percent) above budget, primarily driven by higher-than-budgeted wholesale sales revenue. Additional favorable variance was realized from lower-than-budgeted costs related to generation, transmission, and Joint Powers Agency expenses.

Timing differences in certain operating expenses also contributed modestly to the variance and are expected to normalize over subsequent reporting periods, resulting in a more typical alignment with the budget by year-end.

Expenses
Power Cost (Cost of Energy)
The combined costs for generation, purchases from the Western Area Power Administration (WAPA), Big Horn Wind Project, contracts, and the spot market were $2,250,257 (3.5 percent) below budget projections. This variance is within normal budgetary expectations and reflects routine fluctuations in energy procurement and operating conditions during the period.

The total cost of energy decreased by $2,284,373 (3.6 percent) year over year. Power Cost for the load (Power Cost less Wholesale Sales) increased by $2,224,177 (4.9 percent) year-overyear, reflecting changes in net energy procurement and system operating conditions.

System O&M
System O&M costs for the first nine months of the fiscal year were $4,591,800 (10.2 percent) below budget projections. The favorable variance was primarily driven by the timing of expenses and deferred activities, with additional savings attributable to personnel costs.

Packet Pg. 596
Report to Redding City Council May 13, 2026
Re: 9.5(b)--Electric Utility's Financial Report - 3rd Quarter Page 3 Debt Service and Capital Outlay
Debt service payments and obligations through March totaled $14.0 million (on plan). Capital expenditure totaled $13.8 million (55.1 percent spent). The pace of spending is consistent with expectations for this stage of the fiscal year. These expenditures are bond-funded, ensuring that the capital program is fully supported by dedicated financing rather than impacting operating budgets. Continued monitoring will ensure that remaining projects stay on schedule and within budget throughout the year.

Special Fund Expenditures
Special Fund Expenditures, which include spending on Public Benefit and Cap-and-Trade Programs, totaled $2,501,569 (representing 25.4 percent of the budget) through March. Staff are actively reviewing initiatives and identifying opportunities to deploy the remaining allocated funds, ensuring that program objectives are met and resources are used effectively throughout the fiscal year.

Electric Utility Unrestricted Cash Balance
At the end of March, the unrestricted cash balance was $40.1 million, representing approximately 100 days of cash on hand. This is down from $45.2 million, or 123 days of cash on hand, at June 30, 2025. REU’s Financial Management Policy (Council Policy 1414) requires a minimum of 75 days of cash and aims for 150 days of cash. The anticipated receipt of approximately $2.8 million in bond reimbursements in May related to third-quarter capital outlays is expected to increase unrestricted cash by approximately six days, to approximately 106 days of cash on hand. However, reserves remain below the Council’s financial policy goal of 150 days.

Director’s Contingency Fund
The REU Director’s Contingency Fund was not utilized through March; however, several pending items are expected to draw on these funds in the coming months. Anticipated expenditures primarily relate to increased costs associated with WAPA-owned 230-kV infrastructure at the Whiskeytown Substation, as well as Power Plant system needs and maintenance activities at the Corp Yard. These costs were unexpected but necessary for ongoing operational and system requirements.

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

Council Priority/City Manager Goal
• Budget and Financial Management – Achieve balanced and stable 10-year Financial Plans for all funds.

Packet Pg. 597
Report to Redding City Council May 13, 2026
Re: 9.5(b)--Electric Utility's Financial Report - 3rd Quarter Page 4 Attachments
Attachment 1 - Notes on Financial Operating Statement
Attachment 2 - Electric Utility Financial Results for Mar 2026 Attachment 3 - Electric Utility Financial Dashboard for Mar 2026 Attachment 4 - Electric Utility Financial Results by Major Exp. Groups for Mar 2026 Attachment 5 - Electric Utility Unrestricted Cash Balance Mar 2026 Attachment 6 - Electric Utility Industry Update for Mar 2026 Packet Pg. 598
Attachment 1
City of Redding Electric Utility
Notes to Financial Report
Notes on Financial Operating Statement
Operating revenues are divided into three revenue elements: Retail Sales are sales of electricity to end-use customers; Wholesale Sales are to customers who resell electricity; and Other Revenue, which includes the sale of services, joint-pole arrangements, interest income, and other miscellaneous revenue generated in the operations of Redding Electric Utility (REU).

Operating Expenses are divided into two expense elements: Power Cost and System O&M. Cost of Energy summarizes Purchased Power costs. The primary sources of purchased power include Western Area Power Administration deliveries and long-term contracts for Wind Energy through M-S-R. Fuel expenses, purchases from the spot market, and expenses associated with participation in the California Independent System Operator make up the remainder. The Generation and Transmission component comprises power plant variable costs (fuel) and fixed costs (all non-fuel costs), as well as all JPA costs (M-S-R and TANC), except Wind Energy.

The Wholesale Sales and Power Costs budgets are based on known contracts and confirmed resources. Throughout the year, efforts have been made to provide our ratepayers with the most cost-effective energy supply. This is often achieved by buying and selling natural gas or electricity to lower overall costs. This could include selling natural gas and replacing it with less expensive electricity rather than burning it at our power plant. It might also involve selling energy contracted at one trading hub and buying it at another, less expensive one. Additionally, we optimize the value of our gas storage facility by purchasing natural gas when prices are low and using or selling it in other months. All these transactions benefit our customers but tend to inflate the Wholesale Sales and Cost of Energy figures above their original budgets. This occurs because accounting rules require us to record these transactions at their gross revenue and expense amounts, not based on the utility's net benefit.

System O&M Expenses summarizes costs for all other functional groups, i.e., Administration, Customer Services, Engineering, Financial Services, Line, Compliance, and Resources. Special Revenue funds, i.e., Public Benefits and Cap-and-Trade, are shown separately. Debt Service is paid twice per fiscal year, once in December and again in June. Capital Outlay includes currentyear appropriations and unfinished projects approved by the Council in prior years.

This financial report provides year-to-date comparisons to the current budget and the same yearto-date results for the prior year. Operating revenues are reported as billed. Costs for energy, other operating expenses, and capital outlay are recorded when paid. For this report, debt payments are spread evenly over the year, giving a more helpful picture of the financial results. Projections are based on normal weather trends and known industry activity. If actual weather conditions are above or below average for the month or an unexpected industry disruption occurs, revenue and expenses will increase or decrease accordingly. REU’s residential and small commercial rate structures are heavily weighted on volumetric charges ($/kWh), and abnormal weather causes more significant variances in net operating results, emphasizing the difference between the rate structure and cost structure.

The recorded results are preliminary and subject to revision until the final audit is complete.

Packet Pg. 599 Attachment: Attachment 1 - Notes on Financial Operating Statement (9.5(b)--Electric Utility's Financial Report - 3rd Quarter) ELECTRIC UTILITY FINANCIAL RESULTS - MARCH 31, 2026
YTD-Actual YTD-Budget Variance Variance YTD-Actual
March March % Value March
Item FY2026 FY2026 FY2026 FY2026 FY2025
Energy
System Load (MWh) 573,956 573,626 0.1% 330 593,491
Key Performance Indicators
Days Cash on Hand 100 98
Operating Revenues
Retail Sales 109,898,505 112,226,300 -2.1% (2,327,795) 109,781,575 Wholesale Sales 13,759,609 11,644,790 18.2% 2,114,819 18,268,159 Miscellaneous Income 2,876,514 1,424,625 101.9% 1,451,889 4,244,866 Total Operating Revenues 126,534,628 125,295,715 1.0% 1,238,913 132,294,599 Operating Expenses
Power Cost
Purchased Power 17,544,218 14,624,900 20.0% 2,919,318 16,778,660 Generation, Transmission and JPA (Variable) 23,581,887 25,014,500 -5.7% (1,432,613) 25,586,164 Generation A&G and O&M (Fixed) 20,070,984 23,807,945 -15.7% (3,736,961) 21,116,638 Subtotal Power Cost 63,447,345 61,197,089 -3.5% (2,250,257) 63,481,461 System O&M
General & Administrative1 5,510,548 4,295,460 -22.1% (1,215,089) 3,681,533 Interdepartmental (Incl. In-Lieu of Tax)1 8,889,488 8,793,488 -1.1% (96,000) 9,483,133 Transmission & Distribution1 27,865,165 24,584,454 -11.8% (3,280,712) 22,909,696 Customer & Field Services 2,561,520 2,561,520 0.0% (0) 2,377,250 Subtotal System O&M 40,234,921 44,826,721 -10.2% (4,591,800) 38,451,612 Total Operating Expenses 101,432,010 $ 108,274,066 $ -6.3% (6,842,057) $ 101,933,073 $ Net Operating Revenue 25,102,618 $ 17,021,649 $ 47.5% 8,080,969 $ 30,361,526 $ Total Debt Service 14,037,430 $ 14,061,600 $ 0% (24,170) $ 10,791,423 $ YTD-Actual Budget % of Budget Budget YTD-Actual
March Annual Spent Remaining March
Item FY2026 FY2026 FY2026 FY2026 FY2025
Capital Outlay
Capital Outlay (Revenue Funded)
Capital Outlay (Bond Funded)2 24,983,060 13,761,939 55.1% 11,221,121 11,969,620 Total Capital Outlay 13,761,939 $ 24,983,060 $ 55.1% 11,221,121 $ 11,969,620 $ Special Fund Expenditures
Public Benefit Programs 1,630,537 6,974,765 23.4% 5,344,228 1,785,359 Cap-and-Trade Programs 871,032 2,866,370 30.4% 1,995,338 188,375 Total Special Fund Expenditures 2, $ 9,841,135 501,569 $ 25.4% 7,339,566 $ 1,973,734 $ Financial Results (5,198,320) $ 5,626,749 $
CHANGES IN YTD-Budget FY2026:
1 Resolution No. 2026-018: Mid-year Budget modification reducing nine positions for a decrease of $1,527,560 and an increase in Interdepartmental of $82,470. 2 Resolution No. 2025-051 and 2026-02: Budget increase of $137,700 for Security Pipeline Fence Project and $425,000 for the Unit 9 FERc Relicense Project. 2 Includes $5,468,360 in FY2025 carryover.

Council Report
Packet Pg. 600 Attachment: Attachment 2 - Electric Utility Financial Results for Mar 2026 (9.5(b)--Electric Utility's Financial Report - 3rd Quarter) ELECTRIC UTILITY FINANCIAL DASHBOARD - MARCH 31, 2026 1.5 0.91.72.6 0.41.0 -0.5 -2.1 -2.3 (5)
-
5 10
15 20

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$-Millions
Retail Sales ($-Millions)
Cumulative Difference 2025 Actual 2026 Actual 2026 Budget -1.2
-0.9
-0.6
-0.2 -0.1 -0.2

0.3 1.0

2.1 (2)
(1)
-
1 2
3 4
5 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$-Millions
Wholesale Sales ($-Millions)
Cumulative Difference 2025 Actual 2026 Actual 2026 Budget Packet Pg. 601 Attachment: Attachment 3 - Electric Utility Financial Dashboard for Mar 2026 (9.5(b)--Electric Utility's Financial Report - 3rd Quarter) ELECTRIC UTILITY FINANCIAL DASHBOARD - MARCH 31, 2026 -7.0 -7.4 -7.5-5.5 -6.6 -8.7 -9.0 -8.4-6.8 (15)
(10)
(5)
-
5 10
15 20
25 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$-Millions
Total Operating Expense ($-Millions)
Cumulative Difference 2025 Actual 2026 Actual 2026 Budget 0.4 0.0 1.4 2.8 0.81.3 0.40.51.2 -
2 4
6 8
10 12
14 16
18 20

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$-Millions
Total Operating Revenues ($-Millions)
Cumulative Difference 2025 Actual 2026 Actual 2026 Budget Packet Pg. 602 Attachment: Attachment 3 - Electric Utility Financial Dashboard for Mar 2026 (9.5(b)--Electric Utility's Financial Report - 3rd Quarter) Division Personnel
Materials,
Supplies &
Services
Capital
Outlay
Debt
Service Total
FY 2023-24 Actual 44,430,319 $ 105,765,883 $ 14,014,972 $ 14,298,520 $ 178,509,694 $ FY 2024-25 Actual 44,592,574 $ 101,671,317 $ 15,996,001 $ 14,762,143 $ 177,022,035 $ FY 2025-26 Adopted 47,610,841 $ 100,864,380 $ 18,952,000 $ 18,633,800 $ 186,061,021 $ FY 2025-26 Amended * 46,083,281 $ 100,946,850 $ 24,983,060 $ 18,633,800 $ 190,646,991 $ FY 2025-26 Actual 31,428,992 $ 72,504,587 $ 13,761,939 $ 14,037,430 $ 131,732,948 $ FY 2025-26 Budget Remaining 14,654,289 $ 28,442,263 $ 11,221,121 $ 4,596,370 $ 58,914,043 $ % of Budget Spent 68.2% 71.8% 55.1% 75.3% 69.1%
* FY 2025-26 Amended reflects Resolution No. 2026-018 (mid-year budget modification), reducing nine positions for a $1,527,560 decrease in Personnel, an $82,470 increase in Materials, Supplies & Services (Interdepartmental), and a $6,031,060 increase in Capital Outlay related to Resolution Nos. 2025-051 and 2026-02 ($562.700), and FY2025 carryover ($5,468,360).

ELECTRIC UTILITY FINANCIAL RESULTS - MARCH 31, 2026
Department's Budgets/Actuals Separated into Major Expenditure Groups Electric
Utility
Packet Pg. 603
Attachment: Attachment 4 - Electric Utility Financial Results by Major Exp. Groups for Mar 2026 (9.5(b)-- Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Unrestricted Cash - 2025-26 38.4 36.8 40.6 42.9 42.0 39.1 38.2 35.7 40.1Unrestricted Cash - 2024-25 33.5 38.5 38.9 34.3 33.2 32.6 33.4 36.6 35.8 54.4 48.1 45.2

20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0 70.0
MILLION $

REU UNRESTRICTED CASH BALANCE
JULY 2024 ‐ JUNE 2026
Packet Pg. 604
Attachment: Attachment 5 - Electric Utility Unrestricted Cash Balance Mar 2026 (9.5(b)--Electric Utility's 1 City of Redding Electric Utility
Industry Activities Update —3rd Quarter FY2026
Federal Update
During this reporting period, Northern California Power Agency (NCPA) and its members participated in the American Public Power Association (APPA) 2026 Legislative Rally in Washington, D.C., engaging with federal policymakers on key issues, including hydropower operations, wildfire liability and prevention, permitting reform, and increasing electricity demand driven in part by data center growth. These discussions were generally well-received by legislators.

At the federal level, Congress continues to work toward FY 2026 Department of Homeland Security (DHS) funding, while the Senate Energy and Natural Resources Committee recently held hearings highlighting concerns over rising electricity demand and costs. Federal agencies are advancing portions of the clean energy agenda, with the Department of the Interior (DOI) resuming approvals of solar and wind projects and the Department of Energy (DOE) proceeding with funding for hydropower, hydrogen, carbon capture, and grid infrastructure initiatives.

Permitting reform and wildfire mitigation remain key priorities. Proposed legislation, including the PERMIT Act (H.R. 3898), seeks to streamline Clean Water Act permitting. At the same time, draft transmission reform proposals could expand the Federal Energy Regulatory Commission’s (FERC) jurisdiction to include public power utilities. The proposed Wildfire and Grid Reliability Act (S.4193) would provide significant grant funding to support wildfire risk reduction and grid resilience.

Additionally, the Environmental Protection Agency’s (EPA) proposed hydropower rule would limit state authority under the Clean Water Act and impose stricter review timelines, potentially affecting future permitting for facilities such as the City-owned Whiskeytown generator.

Overall, the evolving federal landscape presents both opportunities and challenges for Redding Electric Utility (REU), including increased permitting complexity, regulatory uncertainty, and continued pressure on resource planning and reliability.

State Legislative Update
The State Legislature is considering over 40 bills affecting the electric industry, including wildfire mitigation, electricity pricing, distributed energy resources, and potential extension of the Diablo Canyon facility. Key legislation includes SB 905 (Becker), which would establish a reimbursement program to offset ratepayer costs for electrification, public purpose programs, and wildfire mitigation, and AB 1820 (Schiavo), related to EV charging permitting fees, which has received a “Not Favor” position from California Municipal Utilities Association (CMUA) and NCPA.

The second year of the legislative session began in December, with several two-year bills carried over that may continue to impact the electric industry. The Legislature must act on these bills by January 31 to advance them. While fewer new energy bills are anticipated in 2026, key priorities remain focused on energy affordability, local permitting reform, wildfire liability, and responses to evolving federal energy policies.

Packet Pg. 605 Attachment: Attachment 6 - Electric Utility Industry Update for Mar 2026 (9.5(b)--Electric Utility's Financial Report - 3rd Quarter) 2 At NCPA’s Strategic Conference in Sacramento, affordability was identified as the Legislature’s top priority, with wildfire mitigation costs remaining a primary driver of rising energy costs statewide. Most legislation relevant to publicly owned utilities (POUs), including REU, is currently moving through committee, with ongoing engagement by NCPA and CMUA to advocate for public power interests.

State Regulatory Update
The California Air Resources Board (CARB) has revised the Advanced Clean Fleets (ACF) regulation, delaying the 100% zero-emission vehicle (ZEV) requirement from 2027 to 2030 and expanding applicability to all public agencies. While added exemptions provide some flexibility, compliance challenges remain due to high costs, limited vehicle availability, and operational constraints—particularly for emergency response and reliability. REU will continue working through CMUA and NCPA to advocate for additional flexibility and realistic implementation.

On the Cap-and-Invest program, CARB’s initial proposal would have reduced allowance allocations for electric utilities beginning in 2027, undermining AB 1207’s affordability objectives by limiting the number of allowances available to offset power supply costs. For REU, this would have resulted in a loss of more than 59,000 allowances, valued at approximately $3.53 million, directly impacting ratepayer costs. Following extensive stakeholder engagement and over 700 comment submissions, CARB’s updated 15-Day Language reflects a more favorable outcome for REU, providing nearly 70,000 additional allowances for the 2027–2030 period. While this revision acknowledges how utilities procure clean energy and mitigate impacts for REU, many other POUs and all investor-owned utilities (IOUs) would still experience reduced allocations, effectively penalizing early carbon reduction efforts. As a result, CMUA, NCPA, and the Joint Utility Group (JUG) are expected to oppose the current proposal and advocate for maintaining original allocation levels through 2030 to support affordability and equitable treatment across utilities.

At the state level, wildfire liability reform remains a key issue. The California Earthquake Authority’s AB 254 study outlines potential structural changes, including modifications to inverse condemnation and limitations on utility liability exposure. These proposals may shape future legislation, with REU continuing to engage to ensure balanced, practical solutions.

Additional regulatory efforts include implementation of SB 1158 (hourly emissions reporting beginning in 2028) and CPUC-led gas planning and decarbonization pilots under SB 1221. REU, in coordination with CMUA and NCPA, will continue to monitor and participate in these processes to protect affordability, maintain operational flexibility, and support achievable compliance.

Conclusion
REU staff, in coordination with NCPA and CMUA, are actively engaging with legislators and regulators to protect public power interests and support policies that ensure safe, reliable, and affordable service. As one of California’s lowest-cost electric providers, REU remains committed to maintaining affordability and reliability while advancing state clean energy goals, minimizing risk, and preserving local control and rate stability.

Packet Pg. 606 Attachment: Attachment 6 - Electric Utility Industry Update for Mar 2026 (9.5(b)--Electric Utility's Financial Report - 3rd Quarter)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve the terms of the Request for Proposal for the Civic Auditorium Lease and $80,000 per month in transition funding for Advance Redding, not to exceed $400,000.

Fiscal Impact
At the February 3, 2026, meeting, the City Council (Council) directed staff to develop and issue a Request for Proposal (RFP) for the Civic Auditorium lease. The budget impacts of the RFP are unknown at this time. However, should Council desire to provide an operations and maintenance budget to the successful proposer, the funding source and amount would dictate the impact. If desired, staff will quantify any resulting impacts for the Council’s consideration in the future should the Council award the RFP.

Since staff also recommends the Council authorize an ongoing budget for a transition period from Advance Redding to a new operator, there would be additional impact from the expense and the chosen funding source, if any. The proposed budget for Advance Redding is $80,000 per month, which would begin in July and run through the end of November. The total cost would be $400,000. As with the last grant, the funding source for this expense can be through one-time funds or another source as identified by Council. If authorized, staff will return at a future meeting with an agreement and proposed funding source(s).

Alternative Action
The Council could provide staff with alternate direction regarding the RFP, the transition period funding, the process, or the Civic Auditorium.

MEETING DATE: May 19, 2026
ITEM NO. 9.6(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(b)--Consider providing $80,000 per month in transition funding for Advance Redding and the terms for the Request for Proposal for the Civic Auditorium Lease located at 700 Auditorium Drive.

Travis Menne, Director of
Community Services/Airports
Packet Pg. 607
Report to Redding City Council May 14, 2026
Re: 9.6(b)--Approve Terms for Civic Auditorium Request for Proposals Page 2 Background/Analysis
At its meeting on January 20, 2026, the Council directed staff to return on February 3, 2026, with short-term funding options for consideration and authorized six months of additional rent relief.

At the February 3 meeting, the Council further directed staff to develop and issue a RFP for the lease of the Civic Auditorium.

Since that time, staff has met with Advance Redding (the current lessee) and the City Council Ad Hoc Committee, consisting of Mayor Pro Tempore Erin Resner and Council Member Tenessa Audette to discuss the Civic Auditorium. Over two meetings in May of this year, Advance Redding worked through the details of a revised business plan with feedback from the Ad Hoc Committee and staff. Unfortunately, after months of business plan permutations and cost cutting, Advance Redding’s Board did not find a low-risk sustainable model that does not rely on continued City of Redding (City) funding or fits within the City’s current financial restrictions.

Therefore, staff is moving forward with an option for the Council to provide direction on the details of the RFP so the City may solicit proposals for a new operator. Staff is in need of direction on key details prior to posting the RFP. Though the recommendation from staff is to mostly align with the existing lease agreement terms, which are detailed below, several key modifications require input from the Council. The lease will also include language requiring the Civic Auditorium operator to collaborate with the Rodeo Grounds, for which their lease includes language about parking and event days.

Current Civic Auditorium Lease Summary & Proposed Changes Topic Existing Proposed
Subletting Allowed to sublet No change
Events 60 event days required 120 use days
Special Events (Kool April
Nites, Redding Rodeo Daysparking lot only, 3 on 3
Basketball Tournament –
parking lot only, Turtle Bay
Auction, California Deer
Dinner, Memorial Day
Ceremony-outside only,
Redding State of the City
Luncheon, July 4th Freedom
Festival, One other two-day
weekend as requested by the
Redding Rodeo Association)
9 special events* required (determined by
City)
Limit events per
Council
direction
Utilities Tenant shall pay for heat, electricity, water, gas, garbage, telephone, sewage, drainage
No change
Maintenance Exterior, Major
Mechanical, Grounds & Other
Improvements
The City maintains the exterior, major
mechanical, grounds and other
improvements. Includes HVAC, major
plumbing, roofs, parking lot, elevator, etc.

No change
Maintenance Interior &
Improvements
Maintain interior and improvements in
good condition (routine repairs, upkeep)
No change
Packet Pg. 608
Report to Redding City Council May 14, 2026
Re: 9.6(b)--Approve Terms for Civic Auditorium Request for Proposals Page 3 Parking Lot Use No charge to City Fire Department for
Training
No change but
add the ability
to charge for
parking lot
usage for others.

Natural Disaster City may occupy during a natural disaster No change City Free Use Days City shall be permitted to use the Premises for municipal purposes, without the
obligation to pay rent, in whole or in part,
provided that use does not interfere with
Tenant’s use of Premises. City will
reimburse Tenant for utilities and set
up/tear down costs (if applicable)
No change
Monthly Rent $5,000 $0
Operations and Maintenance
Budget
$0 Allow the
proposer to
make a
compensation
request, if any,
in the RFP for
these services.

Other major details of the RFP include:
• Statement of finances to ensure the potential operator can fund their business without relying on the City as a risk partner or providing an upfront operations budget; and • A transition plan to move operations from Advance Redding to the successful proposer.

Transition Funding
To ensure a seamless transition from one operator to the next, reducing impacts to longstanding local events and already contracted shows and performances, staff recommends providing ongoing funding to Advance Redding. The proposed method is through a grant agreement, which will return to Council for approval if authorized at this meeting. The follow up meeting will include a funding source(s) discussion and the agreement required to provide said funding.

Providing transition funding will limit disruptions to the community, continue to support the local economy, and protect the industry-wide reputation of the facility, meaning future events will trust in the stability of the venue and the commitment of the City to support the venue.

Operations and Maintenance Budget for Successful Proposer The Council can decide to either authorize a set operations budget to include in the RFP, allow the proposer to request a budget, or decline to provide any budget at all. Staff recommends allowing the proposer to identify their budget needs, if any, and submit them with their proposal.

Should the Council wish to provide an Operations and Maintenance budget, the Council will need to identify the amount, and staff will return to the Council with the appropriate actions, identify a funding source, and to encumber said funds.

Packet Pg. 609
Report to Redding City Council May 14, 2026
Re: 9.6(b)--Approve Terms for Civic Auditorium Request for Proposals Page 4 Environmental Review
This is not a project defined under the California Environmental quality Act, and no further action is required.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• 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
C-5682 Second Amendment to the Amended and Restated Lease Agreement C-5682 - First Amendment - 2025 - Advance Redding
Previous Staff Report - September 2, 2025, item 9.6(b)
Previous Staff Report - January 20, 2026, item 9.6(c)
Previous Staff Report - October 7, 2025, item 9.6 (a)
(C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement Previous Staff Report - August 19, 2025, item 9.6(d)
Previous Staff Report - February 3, 2026, item 9.6(a)
Packet Pg. 610

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Packet Pg. 611 Attachment: C-5682 Second Amendment to the Amended and Restated Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

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Packet Pg. 612 Attachment: C-5682 Second Amendment to the Amended and Restated Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Packet Pg. 613
Attachment: C-5682 - First Amendment - 2025 - Advance Redding (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Packet Pg. 614
Attachment: C-5682 - First Amendment - 2025 - Advance Redding (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Packet Pg. 615
Attachment: C-5682 - First Amendment - 2025 - Advance Redding (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Packet Pg. 616
Attachment: C-5682 - First Amendment - 2025 - Advance Redding (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve the following actions relative to providing financial assistance to Advance Redding for the operations of the Redding Civic Auditorium:
(1) Adopt Resolution 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 approving and adopting the 10th Amendment to City Budget Resolution No. 2025-049 appropriating $675,450 for the Advance Redding assistance grant.

Fiscal Impact
In 2014, the City of Redding (City) received net proceeds of approximately $600,000 from the sale of property to The McConnell Foundation for the development of the Sheraton Hotel. By City Council (Council) direction, the funds were deposited into a special account to be used for capital investment and deferred maintenance at the Civic Auditorium. Additionally, some of the proceeds from the Civic Auditorium lease payments have been distributed into this account.

Between these sources, minus some previous expenditures, there is approximately $675,000 available. Therefore, providing a grant to Advance Redding would not impact the General Fund.

However, future Civic Auditorium maintenance projects will have less available funding, and staff will be required to seek alternate sources.

MEETING DATE: September 2, 2025
ITEM NO. 9.6(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(b)--Consider Resolution approving financial assistance for Advance Redding and approving a lease amendment for the Civic Auditorium located at 700 Auditorium Drive.

Travis Menne, Director of
Community Services
Packet Pg. 617 Attachment: Previous Staff Report - September 2, 2025, item 9.6(b) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Report to Redding City Council August 27, 2025
Re: 9.6(b)‐‐Authorize Financial Assistance for Civic Auditorium and Advance Redding Page 2

Alternative Action
The Council could choose to not authorize the financial assistance or provide staff with alternate direction.

At the August 19, 2025, Council meeting, Council directed staff to develop a grant agreement for Advance Redding to help support operations of the Civic Auditorium with a total value of $675,445,57. Furthermore, Council directed staff to waive rent payments until January 1, 2026, as well as establish an ad hoc committee of two Community Services Advisory Commissioners to work with staff and Advance Redding to develop new lease terms for Council’s future consideration. While amending the lease will take time, the grant agreement and lease amendment waiving rents can be considered immediately, and the relevant documents are included with this report.

As background, the Amended and Restated Civic Auditorium Lease Agreement (C-5682) between the City and Advance Redding, Inc., establishes the terms for leasing the Redding Civic Auditorium from January 1, 2022, to December 31, 2031. Advance Redding is responsible for managing the venue, ensuring a minimum of 60 event days per year, measured on a three-year rolling average, and accommodating specific community events like Kool April Nites and the July 4th Freedom Festival. The lease allows limited rent-free use of the facility by the City for municipal purposes and natural disaster response.

The rent structure is variable to account for a major subtenant’s presence. In 2022, rent was $10,000 per month and in 2023, increased to approximately $23,356 per month, with cost-ofliving adjustments in 2023 and 2024. However, in December 2023, when Advance Redding received written notice that its subtenant, Bethel Church, intended to terminate its sublease, the rent dropped to $5,000 per month for the remainder of the lease. The rent reduction acknowledged the financial impact of losing a major source of stable income that supported the tenant’s operational viability.

Beyond rent, Advance Redding bears responsibility for interior maintenance, utility costs, and capital upgrades to auditorium seating systems. The City retains responsibility for structural systems such as HVAC, windows, restrooms, grounds maintenance, and parking lots.

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

Packet Pg. 618 Attachment: Previous Staff Report - September 2, 2025, item 9.6(b) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Report to Redding City Council August 27, 2025
Re: 9.6(b)‐‐Authorize Financial Assistance for Civic Auditorium and Advance Redding Page 3

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
^Budget Resolution
Advance Redding Grant Agreement
(C-5682) 2025 First Amendment to the Amended and Restated Lease Agreement Previous Staff Report - August 19, 2025, item 9.6(d)
(C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (C-5682) 2012 First Amendment to Lease Agreement
Packet Pg. 619 Attachment: Previous Staff Report - September 2, 2025, item 9.6(b) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
(1) Provide direction to staff regarding the continued deferment of lease payments of $5,000 per month related to the Redding Civic Auditorium (C-5682); and (2) Consider providing direction to staff regarding the findings of the Ad Hoc Committee regarding funding for the Civic Auditorium.

Fiscal Impact
Advance Redding’s lease payments are currently deferred through January 2026. Should Council decide to continue deferring lease payments, the City will continue to forgo collecting $5,000 per month in lease payments. This will result in a $5,000 per month impact on the Civic Auditorium Fund for as long as Council defers lease payments.

Alternative Action
The Council could choose not to provide any direction at this time. Not approving lease payment deferment will result in the resumption of lease payments. This action would place additional financial burden on Advance Redding for their operation of the Civic Auditorium.

Background/Analysis
At the August 4, 2025, Council meeting, Advance Redding presented the “State of the Civic” to the Council. During that presentation, General Manager Julie Dyar, had two requests from the Council: (1) to use the $675,000 to assist Advance Redding with current expenses; and (2) work with Advance Redding to restructure the existing agreement to ensure future success. At their September 2, 2025 meeting, Council authorized a $675,445.57 grant to Advance Redding.

Council also authorized a lease amendment deferring lease payments until January 2026. Now that the deferment timeline has run out, Staff is seeking guidance on further deferrals and direction regarding the results of the Ad Hoc committee, if any. Should Council wish to continue deferring lease payments, staff will return to Council with a lease amendment to memorialize the deferment timeframe.

MEETING DATE: January 20, 2026
ITEM NO. 9.6(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(c)--Consider providing additional lease deferments and provide direction to staff for Advance Redding's operation of the Civic Auditorium located at 700 Auditorium Drive.

Travis Menne, Director of
Community Services/Airports
Packet Pg. 620 Attachment: Previous Staff Report - January 20, 2026, item 9.6(c) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Report to Redding City Council January 16, 2026
Re: 9.6(c)--Consider Financial Assistance for the Civic Auditorium and Advance ReddingPage 2 As further background, the Amended and Restated Civic Auditorium Lease Agreement (C-5682) between the City and Advance Redding, Inc. establishes the terms for leasing the Redding Civic Auditorium from January 1, 2022, to December 31, 2031. Advance Redding is responsible for managing the venue, ensuring a minimum of 60 event days per year, measured on a three-year rolling average, and accommodating specific community events like Kool April Nites and the July 4th Freedom Festival. The lease allows the City to use the facility for limited rent-free municipal purposes and natural disaster response.

The rent structure is variable to account for a major subtenant’s presence. Rent was $10,000/month in 2022 and increased to approximately $23,356/month in 2023, with cost-ofliving adjustments in 2023 and 2024. However, when Advance Redding received written notice that its subtenant, Bethel Church, intended to terminate its sublease, the rent dropped to $5,000/month for the remainder of the lease. The rent reduction acknowledged the financial impact of losing a major source of stable income that supported the tenant’s operational viability.

Beyond rent, Advance Redding bears the responsibility for interior maintenance, utility costs, and capital upgrades to auditorium seating systems. The City retains responsibility for structural systems such as HVAC, windows, restrooms, grounds maintenance, and parking lots.

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

9.6(d) Consider financial Assistance options for Advance Redding regarding the Civic Auditorium
C-10981 - Grant Agreement - 2025 - Advance Redding

9.6(b) Consider Resolution Approving Financial Assistance for Advanced Redding and Approving a Lease Amendment for the Civic Auditorium
Packet Pg. 621 Attachment: Previous Staff Report - January 20, 2026, item 9.6(c) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept the report; and provide direction to staff.

Fiscal Impact
In 2014, the City of Redding (City) received net proceeds of approximately $600,000 from the sale of property to The McConnell Foundation for the development of the Sheraton Hotel.

Subsequently, City Council (Council) authorized the funds to be deposited into a special account to be used for capital investment and deferred maintenance at the Civic Auditorium.

Additionally, some of the proceeds from the Civic Auditorium lease payments have been distributed into this account. Between these sources, minus some previous expenditures, there was approximately $675,000 available. There was no impact to the General Fund with this action.

On September 2, 2025, Council authorized the Mayor to execute a Grant Agreement providing $675,445.57 to Advance Redding, Inc. (Advance Redding), for operations of the Civic Auditorium along with an amendment to the lease agreement waiving the monthly payments of $5,000 until January 2, 2026. The Grant Agreement has been executed and the associated payment is in process.

Alternative Action
The Council could choose not to take action at this time and the agreement would continue as approved or provide staff with alternate direction.

MEETING DATE: October 7, 2025
ITEM NO. 9.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(a)--Consider terminating financial assistance (C-10981) and lease amendment (C-5682) for Advance Redding's operations of the Civic Auditorium located at 700 Auditorium Drive.

Travis Menne, Director of
Community Services
Packet Pg. 622 Attachment: Previous Staff Report - October 7, 2025, item 9.6 (a) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Report to Redding City Council October 1, 2025
Re: 9.6(a)‐‐Consider Terminating Financial Assistance for Civic Auditorium and Advance Redding Page 2

Background/Analysis
At the August 4, 2025, Council meeting, Advance Redding presented the “State of the Civic.” During that presentation, General Manager, Julie Dyar, had two requests from the Council: (1) to use the $675,000 to assist Advance Redding with current expenses; and (2) work with the City to re-structure the existing agreement to ensure future success. On August 19, 2025, Council directed staff to develop a grant agreement for Advance Redding to help support operations of the Civic Auditorium with a total value of $675,445,27 and also directed staff to waive rent payments until January 2, 2026.

On September 2, 2025, Council authorized the Mayor to execute the Grant Agreement and Lease Amendment documents - both agreements were executed on September 9, 2025. On September 16, 2025, Council directed staff to return with a report for discussion and consideration of options, if any, at its next meeting, regarding the terms and conditions of both the Amended and Restated Civic Auditorium Lease Agreement (C-5682) and the executed Grant Agreement (C10981) with Advance Redding.

In general, the terms of the Grant Agreement are:
 One-year term, expiring September 8, 2026;
 The City can terminate with 30 days written notice to Advance Redding;  A grant report shall be submitted detailing exact expenditures, with relevant records or invoices and outcomes noted, prior to the end of the grant term;  The City shall provide a grant in an amount not to exceed $675,445.27 to Advance Redding for activities as set forth in the Scope of Work (Exhibit A, Page 8 of attached contract);
 Payment of said funds shall be made in one lump sum payment within 30 days of the date of this Agreement;
 Any funds paid to Advance Redding shall be used solely for the purposes set forth in the Scope of Work (Exhibit A, Page 8 of attached contract) and in accordance with the terms outlined within this contract;
 Exhibit A details planned expenditures, which includes fencing, utility costs, outdoor stage rental, production costs, and rentals which include lighting and sound; and  Upon termination of this agreement, any funds remaining shall be returned to the City, and any funds not used for the purposes specified in Exhibit A shall be repaid to the City in full.

Per the terms of the Grant Agreement, should the payment be received, and spent on eligible expenses, the City has no recourse to recuperate funds unless the terms of the contract were violated.

The sole term of the Lease Amendment is that rent, previously $5,000 per month, is waived until January 2, 2026.

Packet Pg. 623 Attachment: Previous Staff Report - October 7, 2025, item 9.6 (a) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Report to Redding City Council October 1, 2025
Re: 9.6(a)‐‐Consider Terminating Financial Assistance for Civic Auditorium and Advance Redding Page 3

As further background, the Amended and Restated Civic Auditorium Lease Agreement between the City and Advance Redding, establishes the terms for leasing the Redding Civic Auditorium from January 1, 2022, to December 31, 2031. Advance Redding is responsible for managing the venue, ensuring a minimum of 60 event days per year, measured on a three-year rolling average, and accommodating specific community events like Kool April Nites and the July 4th Freedom Festival. The lease allows limited rent-free use of the facility by the City for municipal purposes and natural disaster response.

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

Council Priority/City Manager Goals
 Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
 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
^C-10981 - Grant Agreement - 2025 - Advance Redding
Reso. 2025-074 - Authorizing Financial Support for Advanced Reddings Operations of Redding Civic
Previous Staff Report - August 19, 2025, item 9.6(d)
Previous Staff Report - September 2, 2025, item 9.6(b)
(C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement C-5682 - First Amendment - 2025 - Advance Redding
Packet Pg. 624 Attachment: Previous Staff Report - October 7, 2025, item 9.6 (a) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Ote,,;e0atOltiV:W

CI TY OF REDDMG
114)
e 777 CYPRESS AVENUE, REDDING, CA 96001
P.O. Box 496071. REDDING CA 96049- 6071

PAMELA MIZE, CITY CLERK

SHARLENE TIPTON, ASSISTANT CITY CLERK
530 225 4447
530 225 4463 FAX
December 21, 2021
Advance Redding, Inc.

Attn: Julie Dyar
700 Auditorium Drive
Redding, CA 96001
RE: Amended and Restated Civic Auditorium Lease Agreement, C- 5682 Dear Julie Dyar,
Enclosed please find the fully executed original of the above referenced Amended and Restated Civic Auditorium Lease Amendment by and between the City of Redding and Advance Redding, Inc. regarding the long term lease for the civic auditorium.

If you have any questions regarding this agreement, or if we can be of assistance, please contact the Office of the City Clerk at ( 530) 225- 4044.

Sincerely,
Amber DalPoggetto
Executive Assistant
Enclosure
cc: Barry Tippin
Barry DeWalt
Angie Ryan
Kim Niemer
Ellen Grannis
Casey S. Hale
Packet Pg. 625 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

AMENDED AND RESTATED

CIVIC AUDITORIUM LEASE AGREEMENT
THIS AMENDED AND RESTATED CIVIC AUDITORIUM LEASE ("Agreement") fully amends, supersedes, and restates in its entirety the following as of January 1, 2022:

THE CONVENTION CENTER LEASE ( C- 5682) dated October 5, 2011 Original Lease", herein), by and between the CITY OF REDDING, a Municipal Corporation (" Landlord"), and ADVANCE REDDING, INC., (" Advance Redding", and/ or" Tenant"),
As amended by the First Amendment to Convention Center Lease dated August 21, 2012,
As amended by the Second Amendment to Convention Center Lease dated September 17, 2015,
As amended by the Third Amendment to Convention Center Lease dated May 4, 2017, and
As amended by the Fourth Amendment to Convention Center Lease dated September 9, 2021.

WHEREAS, the Redding Civic Auditorium (" Civic Auditorium"), formerly known as the Redding Convention Center, has historically served as an entertainment and meeting venue hosting various commercial and community events.

WHEREAS, Tenant desires to lease from the City of Redding certain real property located at 700 Auditorium Dr., Redding, CA 96001 (" Premises"), upon which Tenant may at Tenant' s sole discretion and for Tenant' s account, operate and maintain the Premises as a venue for hosting artistic, cultural, community, educational, performing arts, and similar events; conventions and trade shows; and regular ongoing use for educational or community purposes in accordance with Tenant' s requirements and on the conditions set forth herein (" Tenant' s Use).

WHEREAS, the City of Redding (" City") desires to lease the Premises to Tenant upon the terms and conditions set forth herein.

NOW, THEREFORE, for good and valuable consideration hereby acknowledged, City and Tenant enter into this Lease Agreement (" Agreement") effective as of the date this Agreement is signed by both City and Tenant as follows:

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02 P\RAITVOZI \ I Le 2A)2_1
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Packet Pg. 626 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request SECTION 1. DEFINITIONS.

A. Commencement Date. The Commencement Date is January 1, 2022.

B. Property.

1. The " Property" in all of the real property of the Civic Auditorium comprising approximately 9. 76 acres, situated in the City of Redding, County of Shasta, State of California, legally described on Exhibit A and depicted on Exhibit B, attached and incorporated herein, inclusive of all Improvements now or hereafter located thereon.

2. Tenant shall schedule use for the front lawns at the Redding Civic Auditorium depicted in Exhibit C. City shall provide maintenance services for this area consistent with this Lease Agreement. The lawn areas shall continue to be open to public use when not specifically reserved.

C. Event Day. An event day is a calendar day in which the Premises is leased or used for a Special Event, a City Free Use Day, a community event not associated with Bethel Church of Redding ( the " Church"), or the City occupies the Premises in the event of a natural disaster.

D. Improvements. The Improvements are listed and described in Sections 6.A. and

6. B., and all other improvements and facilities on the site including, but not limited to, appurtenant fixtures, machinery and equipment necessary for the operation of the Premises.

E. Lease Year. " Lease Year" means January 1 through December 31.

F. Month. " Month" means a calendar month.

G. Premises. The " Premises" are the Property, the Improvements and Tenant' s right to use the appurtenances located thereon.

H. Rent. " Rent" means rent as set forth under Section 3.B.

I. Term. " Term" means the term of this Agreement as set forth under Section 3.A.

SECTION 2. LEASE AND ACCOMMODATION OF SPECIAL EVENTS.

A. Lease of Premises. For and in consideration of Tenant' s covenant to pay Rent and its performance of other obligations in accord with the terms and conditions set forth herein, City leases the Premises to Tenant for the Term set forth in Section 3 and Tenant accepts lease of the same. Tenant hereby covenants that the Premises shall be marketed, and in all respects referred to, as the Redding Civic Auditorium.
2 Packet Pg. 627 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request B. Obligation to Sublet or Authorize Use of Premises. As consideration for the grant of the right to occupy the Premises under the terms and conditions set forth herein, Tenant shall sublet or otherwise authorize use of the Premises for a minimum of sixty (60) Event Days during each Lease Year. To the extent that the City wishes to use the Premises during an Event Day, Tenant and City agree to use their best efforts to coordinate that use so that it does not interfere with Tenant' s use of the Premises or Tenant' s performing its obligations hereunder, including but not limited to Sections 2. B. and 2. C.

C. Special Events. The obligation set forth in Section 2.B. shall include Tenant' s obligation to sublet or otherwise authorize use of the Premises for the following Special Events:

1. Kool April Nites.

2. Redding Rodeo Days ( Parking Lot Only).

3. 3 on 3 Basketball Tournament ( June Event— Parking Lot Only).

4. Turtle Bay Auction.

5. California Deer Dinner.

6. Memorial Day Ceremony ( Outside Only).

7. Redding State of the City Luncheon.

8. July
4th
Freedom Festival.

9. One other two- day weekend as requested by the Redding Rodeo Association, provided that the event, is booked at least six months prior to the use dates, and provided further that such weekend date is not already under contract at the facility.

D. Scheduling. Tenant hereby acknowledges that the scheduling of the Special Events listed under Section 2. C. is not subject to specific dates and times and that scheduling will vary from Lease Year to Lease Year. Tenant hereby agrees to give priority scheduling to the Special Events.

E. Remedies. In the event of Tenant' s breach of Section 2. B or 2. C, City may, in its sole discretion, exercise the remedies set forth in Section 14 with regard to default or, in the alternative, City may require payment by Tenant of the sum of Two Thousand ($ 2, 000) Dollars, as liquidated damages and not as a penalty, for each Event Day not accomplished during the Lease Year. In establishing the liquidated damages set forth herein, the Parties agree and hereby confirm that it is impracticable to fix actual damages for breach of Sections 2. B. and 2. C. Tenant shall pay the same within thirty ( 30) calendar days upon receipt of written 3 Packet Pg. 628 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request demand from City. Notwithstanding the preceding, Tenant shall not be deemed to be in violation of Section 2. B or 2. 0 if it sublets or otherwise authorizes use of the Premises for a minimum of sixty ( 60) event days per calendar year calculated using a three ( 3) year rolling average that includes the current calendar year and the two (2) calendar years immediately preceding the current calendar year.

F. Use of Premises— Natural Disaster. In the event of a natural disaster, City may occupy the Premises if, in the City' s sole discretion, such occupation is reasonably required for the health, safety, and welfare of the residents of Redding provided it does not interfere with Tenant' s use of the Premises or Tenant' s performing its obligations hereunder, including but not limited to Sections 2.B. and 2. C. Such occupation may last only until such time as the natural disaster has concluded and reasonable time has elapsed to allow for evacuation of the Premises and relocation of the occupants located on the Premises due to such natural disaster. To the extent that Tenant incurs costs or expenses ( including but not limited to utilities and set up and tear down) directly related the City' s occupation of the Premises in the event of a natural disaster, City shall reimburse Tenant for those costs and expenses.

G. City Free Use Days. Upon ten ( 10) calendar days' notice to Tenant, City shall be permitted to use the Premises for municipal purposes, without the obligation to pay rent, in whole or in part, provided that use does not interfere with Tenant' s use of the Premises or Tenant' s performing its obligations hereunder, including but not limited to Sections 2. B. and 2. C. Tenant shall make a good faith effort to accommodate such City use. To the extent that Tenant incurs costs or expenses directly related to City' s use of the Premises for a City Free Use Day ( including but not limited to utilities and set up and tear down), City will reimburse Tenant for those costs and expenses. Upon thirty ( 30) calendar day' s notice to City, Tenant may cancel a City Free Use Day if Tenant lets the Premises after the City has scheduled a City Free Use Day and Tenant can no longer accommodate City' s use of the Premises during the City Free Use Day.

H. Fire Department Training. Tenant shall permit the parking lot of the Civic Auditorium to be used without cost to City for training by City departments provided that use does not interfere with Tenant' s use of the Premises or Tenant' s performing its obligations hereunder, including but not limited to Sections 2. B. and 2. C.

SECTION 3. TERM AND RENT.

A. Term. The term of this Agreement shall commence on January 1, 2022. The Term shall end on December 31, 2031, unless terminated earlier pursuant to Section 14. No provision is made herein for automatic renewal. 4 Packet Pg. 629 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request B. Rent. Tenant covenants and agrees to pay Rent as follows:

January 1, 2022 —December 31, 2022 - Ten Thousand Dollars ($ 10, 000)/ month.

January 1, 2023 - December 31, 2023 The monthly rate of $23, 356 will be adjusted upward or downward by the percentage of increase or decrease in the U. S. Bureau of Labor Statistics West Coast Mid- Size Cities B/ C June- July CPI with said adjustment to be made effective on January 1, 2023.

January 1, 2024 - December 31, 2024 —The monthly rent as of January 1, 2023 will be adjusted upward or downward by the percentage of increase or decrease in the U. S. Bureau of Labor Statistics West Coast Mid-Size Cities B/ C June- July CPI with said adjustment to be made effective on January 1, 2024.

January 1, 2025— December 31, 2031 - Ten Thousand Dollars ($ 10, 000)/ month.

Adjusted Rent. Notwithstanding the foregoing, Tenant shall notice Landlord upon receipt of written notice by Church of intent to terminate sublease agreement. Tenant shall pay the adjusted rate of Five Thousand Dollars 5, 000)/ month commencing up to twelve months after receipt of notice for the duration of the term. Should the Church continue to sublet the Premises beyond notice, Tenant shall pay the full value of the rent for months outside the twelvemonth period.

C. Rent Payments. Tenant shall pay Rent hereunder in equal monthly installments, in advance, on or before the tenth ( 10th) day of each Month. Rent in lawful money of the United States of America. Unless otherwise provided in this Agreement, all payments of Rent shall be made by Tenant to City without notice or demand.

SECTION 4. WARRANTIES AND COVENANTS.

A. City' s Warranties. City represents, warrants and covenants that as of the Commencement Date:

1. Power and Authority. City is a public body corporate and politic, duly formed, validly existing and in good standing under the Laws of the State of California. City has the authority and power to enter into this Agreement and to consummate the transaction provided for herein. This Agreement and all other documents executed and delivered by City have been duly authorized, executed and delivered by City and constitute legal, valid, binding and enforceable obligations of City. City has no defenses or offsets whatsoever to the enforceability or validity of this Agreement. The person executing this Agreement on behalf of City has been duly authorized to do so.
5 Packet Pg. 630 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

2. No Violations and Actions. The execution, delivery and performance by City of its obligations under this Agreement will not conflict with or result in a breach of any Law (as defined in Section 4. C. 3.), judgment, decree or order by which City or the Premises, or any part thereof, is bound, or the provisions of any contract or other agreement to which City is a party or by which City or the Premises, or any part thereof, is bound and, if City is not an individual, City' s articles of organization, declaration of trust, certificate of incorporation, bylaws, partnership agreement, operating agreement or other organizational documents, as the case may be. The foregoing specifically applies, without limitation, to the City' s tax- exempt bonds described in Section 5. C. hereof. There is no action, suit, proceeding ( including, without limitation, any condemnation proceeding) or investigation pending, or to City' s knowledge threatened, before any agency, court or other governmental authority which relates to the Premises, or any part thereof, or the use thereof.

3. Condemnation; Moratorium. There are no condemnation or eminent domain proceedings pending, or to City' s knowledge threatened or contemplated, against the Premises, or any part thereof. City has not received any notice, oral or written, of the desire of any public authority or other entity to take or use the Premises, or any part thereof. No moratorium or other Law, judgment, ruling or decree of any court or governmental agency has been enacted, adopted, issued, entered, or is pending or in effect, that could materially and adversely affect the Premises or Tenant' s ability to develop and operate Tenant' s Use on the Property.

4. Insolvency Matters. No insolvency Event of Default has occurred.

5. Misrepresentation and Adverse Facts. City has not failed to disclose any fact that is material to the transaction contemplated in this Agreement that is either known by City or not reasonably ascertainable by Tenant.

B. Tenant' s Warranties. Tenant represents and warrants that as of the Commencement Date:

1. Power and Authority. Tenant is a nonprofit Public Benefit corporation in good standing, duly formed and validly existing under the Laws of the State of California. Tenant is qualified to do business in the State of California.

Tenant has the authority and power to enter into this Agreement and to consummate the transaction provided for herein. This Agreement and all other documents executed and delivered by Tenant constitute legal, valid, binding and enforceable obligations of Tenant. There are no claims or defenses, personal or otherwise, or offsets whatsoever to the enforceability or validity of this Agreement. The person executing this Agreement on behalf of Tenant has been duly authorized to do so.
6 Packet Pg. 631 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

2. No Violations or Actions. The execution, delivery and performance by Tenant of its obligations under this Agreement will not conflict with or result in a breach of any Law, judgment, decree or order by which Tenant is bound, or any contract or other agreement to which Tenant is a party or by which Tenant is bound, or Tenant' s certificate of incorporation or bylaws.

3. Misrepresentation and Adverse Facts. Tenant has not failed to disclose any fact that is material to the transaction contemplated in this Agreement that is either known by Tenant or not reasonably ascertainable by City.

C. City' s Covenants. From and after the Commencement Date, City covenants to perform in accordance with the following obligations:

1. Transfer by City; Liens and Encumbrances. Subject to the rights of the Tenant under this Agreement, City may sell, assign or convey any right, title or interest in or to the Premises, which act will not terminate this Agreement. Furthermore, if any transfer by City of an interest in the Premises results in an increase in real property taxes or assessments including, without limitation, due to a change in ownership under Article XIII of the California Constitution), City shall be responsible for and shall indemnify and hold Tenant harmless from such increase.

2. Representations and Warranties. City shall not take any action, or omit to take any action, which would have the effect of violating or rendering untrue any representation, warranty, covenant or agreement contained herein.

3. Governmental Orders; Compliance with Laws. City shall not violate any federal, state or local laws, rules, statutes, directives, binding written interpretations, binding written policies, ordinances and regulations or common law doctrines, as same have been amended, modified or supplemented from time to time (" Law") with respect to the Premises and shall at all times comply with all Laws applicable to the Premises. City promptly shall correct any violation of any Law of which City becomes aware which was not caused by Tenant or any subsidiary, parent or other entity that controls, is controlled by or is under common control with Tenant.

D. Tenant' s Covenants.

1. Transfer by Tenant. Tenant shall not, without the prior approval of City, convey any right, title or interest in or to the Premises. Further, Tenant shall not be entitled to encumber the leasehold or otherwise us its interest in the premises as security.

Packet Pg. 632 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

2. Representations and Warranties. Tenant shall not take any action, or omit to take any action, which would have the effect of violating or rendering untrue any Tenant representation, warranty, covenant or agreement contained herein.

3. Governmental Orders; Compliance with Laws. Tenant shall not violate any federal, state or local laws, rules, statutes, directives, binding written interpretations, binding written policies, ordinances and regulations or common law doctrines, as same have been amended, modified or supplemented from time to time with respect to the Premises and shall at all times comply with all Laws applicable to the Premises. Tenant promptly shall correct any violation of any Law of which Tenant becomes aware which was not caused by Tenant or any subsidiary, parent or other entity that controls, is controlled by or is under common control with City.

SECTION 5. UTILITIES; TAXES; PERMITTED CONTESTS
A. Utilities. Beginning on the date the Term commences, Tenant shall pay or cause to be paid, and shall indemnify, defend and hold harmless City from all charges for public or private utility services supplied to the Premises including, but not limited to, all charges for heat, light, electricity, water, gas, telephone service, garbage collection, sewage, and drainage services. All accounts will be transferred to Tenant. Notwithstanding the foregoing, City will pay or cause to be paid the pro rata share of charges for public or private utility services supplied to the Premises that result from the City' s use of the Premises for uses including, but not limited to, City Free Use Days and City occupation of the Premises resulting from natural disaster.

B. Taxes.

1. Impositions. Beginning on the Commencement Date, Tenant shall pay prior to delinquency each and every one of the following arising during the Term ( collectively, the " Impositions"):

A. Except as otherwise expressly provided in this Agreement, all real property taxes or payments in lieu thereof, including but not limited to possessory interest taxes due under Revenue and Taxation Code section 107 et seq., due with respect to the Property and Improvements or any portion thereof( This provision shall not be construed to require Tenant to pay any amount to City' s general fund, which may represent an " in lieu" transfer);
B. All taxes imposed on or with respect to Tenant' s personal property, inventory and intangibles;
8 Packet Pg. 633 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request C. All assessments for public improvements or benefits which are assessed or payable during the Term with respect to the Property; and
D. All other charges, excises, levies, license fees, permit fees, inspection fees and other authorization fees and other charges including interest and penalties thereon), which at any time during the Term may be assessed, levied, confirmed or imposed on or in respect of or right or interest in the Premises, or any occupancy, use or possession of or activity conducted thereon or any part thereof, expressly excluding, however, any such items arising directly or indirectly out of any act or omission of City.

2. Installments. If by Law any Imposition may at the option of the taxpayer be paid in installments, Tenant, if obligated to pay such Impositions by the terms of this Agreement, may exercise such option, and shall pay all such installments ( and interest, if any) becoming due during the Term following the Commencement Date. At the end of the Term, Tenant shall deposit with City an amount sufficient to pay Tenant' s pro rata share of all Impositions for the Lease Year in which this Agreement expires or sooner terminates. All Impositions payable by Tenant shall be prorated as of the Commencement Date and the expiration or sooner termination of the Term.

3. Tax Statements. If the tax statement in respect of any Impositions covers only the Premises, City and Tenant shall use commercially reasonable efforts to have the tax statement sent directly to Tenant. If the tax statement is sent directly to Tenant, then Tenant will furnish a copy of such statement to City promptly following City' s written request therefore.

In the event such tax statement is not sent directly to Tenant, then City shall promptly forward such tax statement to Tenant, and Tenant shall not be obligated to pay such Impositions, or any portion thereof, sooner than thirty ( 30) days after City shall have provided Tenant a copy of such statement. City shall be liable for any late payment penalties or interest that result from City' s failure to forward any such tax statement to Tenant at least thirty( 30) days prior to the date payment is due.

4. Permitted Contests. Tenant, at its sole cost and expense, may by appropriate legal proceedings conducted in good faith and with reasonable diligence, contest the amount or validity or application, in whole or in part, of any Imposition or of any lien therefore imposed upon the Premises if such proceedings suspend the collection thereof from City, Tenant and the Premises or Tenant has furnished such security, if any, as may be required in the proceedings. Tenant shall give City reasonable notice of the commencement and final disposition of such proceedings. City shall join in any such proceedings as may be necessary or appropriate to 9 Packet Pg. 634 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request prosecute such proceedings properly, and City shall cooperate in any contest conducted by Tenant; provided, however, that any such contest shall be taken without any third-party expense to City. Any refunds obtained pursuant to any contest conducted by Tenant shall be payable to Tenant, and Tenant is authorized to collect the same. Within thirty ( 30) days after Tenant' s receipt of the same, Tenant shall pay to City any refunds, or portions thereof, attributable to Impositions previously paid by City and not attributable to Tenant' s share of same, net of Tenant' s expenses of obtaining such refunds.

C. Tax-Exempt Financing. Tenant acknowledges that City has financed a portion of the cost of construction of the Civic Auditorium or has otherwise encumbered the Premises with tax-exempt bonds. Except for any actions that Tenant is directed to take by City, Tenant hereby agrees that it will not knowingly take any actions that would result in the bonds becoming " private activity bonds" or would otherwise cause the interest on the bonds to become subject to federal income taxes. City will provide Tenant counsel and advice on what actions would result in the bonds becoming " private activity bonds", and will timely give Tenant written notice, with sufficient time to cure, of any Tenant actions that would result in the bonds becoming " private activity bonds". In the event any term or condition in this Agreement shall cause City or Tenant to violate any underlying covenant or condition associated with the bonds or this Agreement, the Parties agree to amend this Agreement in a manner to avoid violating any underlying covenant or condition associated with the bonds; however, if such required amendment materially reduces Tenant' s rights under this Agreement, as determined by Tenant, Tenant may terminate the Agreement without penalty.

SECTION 6. CONSTRUCTION; ALTERATIONS; OWNERSHIP; MAINTENANCE A. Tenant' s Obligations. In addition to all routine maintenance outlined in this agreement, Tenant shall substantially upgrade the auditorium seating system, including but not limited to seats, platforms, lifts, and stairs over the life of this agreement. All work shall be performed in substantial compliance with all applicable Laws of all governmental agencies having jurisdiction over such work.

No construction or alteration which would cause a permanent alteration to the Premises may be commenced by Tenant without the prior written approval of City.

B. Landlord' s Obligations. City shall be responsible for the upgrades and/ or replacements of the HVAC system, restrooms, exterior doors and windows, Auditorium parking lots, and interior carpeting.

I0
Packet Pg. 635 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request C. Timing of Capital Improvement Projects.

The timeline for the obligations included in Sections 6. A and 6. B above will be agreed upon by both parties by January 1, 2025. If repairs or replacements are required in advance of January 1, 2025, the responsible party as outlined in Sections 6. A and 6. B is obligated to fund and complete the repair in a timely manner.

D. Permits; Compliance with Codes. Tenant, at its sole cost and expense, shall obtain all permits and other licenses, permissions, consents and approvals required to be obtained from governmental agencies or third parties in connection with Tenant' s construction or alteration of the Improvements and any subsequent improvements, repairs, replacements or renewals to the Premises by Tenant as required by applicable Laws. City agrees to cooperate reasonably with Tenant and all governmental authorities having jurisdiction to facilitate Tenant' s construction, maintenance and operation of the Premises, including, without limitation, City' s joinder in documents relating to the granting of the permits and other similar matters.

E. Ownership of Improvements. During the Term, the Improvements and all additions, alterations and improvements to the Improvements, and all appurtenant fixtures, machinery, furniture, equipment, and other personal property installed therein, shall be in possession of Tenant. City hereby waives any statutory or common law City' s lien in the Improvements or any of Tenant' s property therein.

At the expiration or sooner termination of this Agreement, the Improvements and all additions, alterations and improvements thereto or replacements thereof, except for such of Tenant' s and Tenant' s authorized sub-tenant' s fixtures, machinery, furniture, equipment, and other personal property removed pursuant to Section 6. G hereof, shall be in possession of City and title shall pass thereto.

1. Any Improvement or equipment purchased by Tenant which has as its purpose the replacement of City property on the Premises or which has been affixed to the Premises shall remain in place upon termination of the Agreement and become the sole property of City.

2. Title of two ( 2) forklifts shall be returned to City by Tenant upon termination of the Lease Agreement. Tenant may return title upon ninety 90) calendar days' written notice to City.

F. Maintenance. Tenant, at its sole cost and expense, shall maintain the interior of the Premises and all Improvements in good condition, normal wear and tear excepted, and City shall have no duty of repair. Tenant shall provide maintenance and record such maintenance at the intervals prescribed by City pursuant to Exhibit D (" Maintenance Schedule") and Exhibit E (" Maintenance Compliance Sheet"), attached and incorporated herein. Notwithstanding the Packet Pg. 636 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request preceding, City shall maintain the roof, HVAC systems, elevator, window integrity as against weather, landscaping, parking lot, and roads.

G. Surrender Upon Termination. Upon expiration or sooner termination of this Agreement, Tenant shall surrender the Premises to City in an " as- is, where- is" condition, with all faults, latent or patent, without representation or warranty, but broom clean and in compliance with this Section 6. G, as of the date of surrender.

1. Obligation to Remove Equipment and On- site Modular Units. Upon the surrender of the Premises to City, Tenant shall remove all equipment, modular office trailers, storage units, and personal property as follows:

A. Cause all fixtures, machinery, furniture, equipment, and other personal property used by Tenant to operate its business, including, without limitation, office equipment, furniture, kitchen equipment and supplies to be removed from the Premises; and
B. In connection with Tenant' s removal of such items, Tenant agrees to do the following as may be necessary in order to surrender the Premises in a safe condition and to satisfy any applicable code requirements: ( i) " cap off' ( either at the wall, ceiling or floor, as appropriate) all electrical wiring and other utility supply lines ( e. g., coolant lines) servicing any such equipment ( specifically excluding, however, all fire sprinkler lines which will not be moved or altered except to the extent necessary to preserve the structural integrity of such lines as they may be affected by the removal of any merchandise racking and other personal property), and ( ii) in those instances where any such equipment was anchored to the floor, cause any anchoring bolts or similar connectors to be ground down flush with the flooring.

2. Abandoned Equipment and On- site Modular Units. If Tenant fails to remove any fixtures, machinery, furniture, equipment, office trailers, storage units, and other personal property at expiration or sooner termination of this Agreement or within a thirty ( 30) days after notice to City specifying the manner in which City contends Tenant has failed to comply with Section 6.F hereof, the same shall be considered abandoned to City, and City may dispose of such property as it deems necessary.

Tenant shall reimburse City for the costs it reasonably incurred to dispose of such property.

H. Mechanic' s Liens. In the event any mechanic' s lien is filed against the Premises, the party permitting or causing such lien to be filed ( the " Permitting Party") hereby covenants promptly either ( a) to pay the same and have it discharged of record, ( b) to take such action as may be required to reasonably and legally object to such lien, or ( c) to have the lien removed from the Premises and, in all events, 12 Packet Pg. 637 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request agrees to have such lien discharged prior to the entry of judgment for foreclosure of such lien. Upon request of the other party ( the " Non-Permitting Party"), the Permitting Party agrees to furnish such security or indemnity as may be required, to and for the benefit of the Non-Permitting Party, to permit an endorsement to the Non- Permitting Party' s title policy to be issued relating to the Non- Permitting Party' s property without showing thereon the effect of such lien. If City or Tenant fails to comply with subdivisions ( a) — ( c), above, the Non-Permitting Party is hereby granted the right, but not the obligation, to bond against or otherwise discharge any such lien and, if the Non- Permitting Party exercises this right, the Permitting Party promptly shall reimburse the Non- Permitting Party upon demand for any and all costs and expenses incurred, including, without limitation, court costs and attorneys' fees, in connection therewith, including interest thereon at the rate set forth in Section 15. M.

License to Use City Equipment. City hereby conveys a license to Tenant to use box office computers and printers and other equipment set forth in Exhibit F Equipment Schedule"), attached and incorporated herein. Notwithstanding the preceding, Tenant shall, without cost to City, permit City' s use of any such equipment upon twenty-four (24) hours' notice to Tenant, provided that use does not interfere with Tenant' s performing its obligations hereunder, including but not limited to Sections 2.B. and 2. C. If any equipment set forth in Exhibit F is damaged or requires replacement, Tenant shall replace or repair said equipment.

SECTION 7. DAMAGE OR DESTRUCTION
A. Tenant Repair. In the event of any damage to or destruction of any of the Improvements located on the Premises Tenant shall, at its sole cost and expense, repair said damage. Tenant shall commence such repair no later than ninety ( 90) calendar days after the event causing said damage or destruction and diligently pursue the same to completion.

B. No Termination of Agreement; Abatement of Rent. This Agreement shall not be terminated because of damage to or destruction of any Improvements on or in the Premises. If such damage or destruction occurs and renders all or a portion of the Premises untenantable or unusable, then Rent shall thereafter abate for as long as and in proportion to the reduction in rental value of the Premises based on the extent to which the Premises are untenantable or unusable, as mutually determined by the parties. However, no abatement in Rent shall be required to the extent the destruction or damage to the Premises was caused by the Tenant' s negligence.
13 Packet Pg. 638 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request SECTION 8. INSURANCE
A. Tenant' s Insurance. Tenant shall procure and maintain, or cause to be procured and maintained, the following types of insurance with respect to the Premises and Improvements thereon, at Tenant' s sole cost and expense:

1. Commercial General Liability Insurance. Commercial general liability insurance in an amount not less than One Million Dollars ($ 1, 000, 000) for each occurrence and Two Million Dollars ($ 2, 000,000) general aggregate, insuring against claims for bodily injury, personal injury and property damage sustained in, on or about the Premises, operations on the Premises, independent contractors, products/ completed operations, personal and advertising injury and contractual liability.

2. Automobile Liability Insurance. Commercial automobile liability insurance insuring against claims for bodily injury, personal injury and property damage arising out of the ownership, maintenance or use of any owned, non- owned or hired vehicles with a combined single limit of not less than One Million Dollars ($ 1, 000,000) for each occurrence.

3. Workers' Compensation and Employer' s Liability. Workers' Compensation insurance in accordance with applicable governmental requirements. Employer' s liability insurance insuring against claims alleging employer negligence that result in work-related injuries, illness or death that are not covered under applicable workers compensation statutes in an amount not less than One Million Dollars ($ 1, 000, 000) for each accident or disease.

4. Property Insurance. Property insurance insuring against damage to the Premises and any Improvements located on the Improvements in an amount not less than One Million Dollars ($ 1, 000,000).

5. Umbrella Liability Insurance. Umbrella/excess liability insurance that applies in addition to and in excess of the insurance required pursuant to this Section 8. A in the amount of not less than Five Million Dollars 5, 000,000) for each occurrence and general aggregate.

6. Additional Insured. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of the operations of Tenant. The coverage shall contain no special limitations of the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers.

7. Primary. For any claims related to this Agreement, the Tenant' s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents or volunteers. Any insurance or self14 Packet Pg. 639 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request insurance maintained by City, its officers, officials, employees, agents or volunteers shall be excess of the Tenant' s insurance and shall not contribute with it.

B. Terms of Insurance.

1. Evidence of Insurance. Tenant shall provide City with evidence of the insurance required hereunder. Such evidence may include a certificate of insurance, a memorandum of insurance or a statement from a licensed insurance broker or insurance company as to the coverage provided. City shall have the right to review Tenant' s actual policy documentation.

2. Terms of Tenant' s Insurance. All policies of insurance described in Section 8. A: ( a) with respect to the coverage required therein, shall be written as primary policies and any other policies maintained by City that may provide overlapping, duplicative or additional coverage shall be deemed excess and non- contributing; ( b) shall be written by insurance companies that have a then current A. M. Best' s
rating of" A", " VII" or an
equivalent rating, or better, and that are licensed, admitted or otherwise authorized to do business in the State of California; ( c) may be provided by group or blanket policies carried by Tenant, provided such group or blanket policies substantially fulfill the requirements specified herein; and d) with respect to liability insurance, shall be written on an " occurrence based" form and provide contractual liability coverage with respect to any indemnity obligation set forth in this Agreement. For the insurance required under Section 8.A, City and, if requested in writing by City, any mortgagee of City shall be named as an " additional insured". A party that is to be named as an additional insured need not be named individually or by an endorsement to such policy, but may be named as part of a class or group of parties granted additional insured status under such policy.

3. Deductibles and Self-Insurance. Tenant shall have the right to have such deductibles and/ or self-insured retentions as Tenant determines to be prudent, provided that no deductible or self-insured retention shall exceed One Hundred Thousand Dollars ($ 100, 000. 00).

SECTION 9. CONDEMNATION
A. Total Taking. In the event of the taking or condemnation by any competent authority of the whole or materially all of the Premises at any time during the Term ( a " Total Taking"), the right of City and Tenant to share in the proceeds of any award for the Premises, the Improvements and damages upon any such Total Taking shall be as follows:
15 Packet Pg. 640 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

1. Termination of Agreement. The Term shall cease as of the date of possession by the condemnor and all Rent shall be apportioned as of the date of possession.

2. Removal of Improvements. There shall be paid from the condemnation award any expenses required with respect to the demolition or removal of any remaining Improvements on the Property upon termination of the Agreement.

3. City' s and Tenant' s Shares. City and Tenant shall each receive the present value of their respective interests in the leasehold estate created by this Agreement and Improvements, together with interest thereon from the date of taking to the date of payment at the rate paid on the award, and attorney' s fees and other costs to the extent awarded.

B. Partial Taking. In the event of a partial taking or condemnation of the Premises, e. g., a taking or condemnation that is not a Total Taking or a temporary taking ( a Partial Taking"):

1. Rent Abatement and Effect on Event Days. Except as provided in Section 7. B., the Term of this Agreement shall continue but the annual Rent to be paid by Tenant under Section 3. B shall thereafter be reduced in the ratio that the rental value of the portion of the Premises taken or condemned ( determined on a square footage or other equitable basis) bears to the rental value of the entire Premises at the time of the Partial Taking, as mutually determined by the parties. Additionally, each day a Partial Taking occurs shall count as an Event Day for purposes of Sections 2. B. and 2. C. hereof.

2. Award. Any award paid in respect of a Partial Taking, whether this Agreement continues or is terminated, shall be divided and shared by City and Tenant as provided in Section 9. A.3 hereof.

3. Restoration. As to the Premises not taken in such condemnation proceeding, Tenant shall proceed diligently, to the extent the portion of the condemnation award paid to Tenant or City is sufficient for such purpose, to restore, repair or reconstruct the Premises, to the extent practicable, to a functional unit of substantially the same usefulness, design, construction and quality as existed prior to such Partial Taking.

4. Successive Takings. In case of a second or any other additional Partial Taking from time to time, the provisions of this Section 9. B shall apply to each such Partial Taking.

C. Temporary Taking. If the whole or any part of the Premises or of Tenant' s interest under this Agreement is taken or condemned by any competent authority 16 Packet Pg. 641 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request for its temporary use or occupancy, ( a) Tenant shall continue to pay, in the manner and at the times herein specified, the full amounts of the Rent and all Impositions and other charges payable by Tenant hereunder, ( b) this Agreement shall continue and, ( c) except only to the extent that Tenant may be prevented from so doing pursuant to the terms of the order of the condemning authority, Tenant shall perform and observe all of the other terms, covenants, conditions and obligations hereof upon the part of Tenant to be performed and observed as though such taking or condemnation had not occurred. In the event of any such temporary taking or condemnation, Tenant shall be entitled to receive the entire amount of any award made for such taking, whether paid by way of damages, rent or otherwise, unless such period of temporary use or occupancy shall extend to or beyond the expiration date of the Term of this Agreement, in which case such award shall be apportioned between City and Tenant as of such date of expiration of the Term. Additionally, each day a Temporary Taking occurs shall count as an Event Day for purposes of Sections 2. B. and 2. C. hereof.

SECTION 10. COMPLIANCE WITH LAWS
A. Tenant to Comply With All Laws. From and after the date this Agreement commences, Tenant shall at all times during the Term of this Agreement, at Tenant' s sole cost and expense, comply in all material respects with Laws now or hereafter enacted or promulgated which are applicable to the Premises and the business of Tenant conducted on the Premises.

B. Nondiscrimination. Except as provided in Section 12940 et seq. of the Government Code, Tenant shall not discriminate against any person because of his/ her race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, mental status, sexual orientation or sex nor shall Tenant refuse to hire or employ such person or discriminate against such person in compensation or in the terms, conditions or privileges of employment.

SECTION 11. INSPECTION BY CITY
City and City' s agents and representatives shall be entitled, from time to time, upon reasonable notice to Tenant, to go upon and into the Premises during Tenant' s business operating hours for the purpose of inspecting the same or inspecting the performance by Tenant of the Contracts and conditions of this Agreement.

SECTION 12. INDEMNIFICATION
A. Tenant to Indemnify City. Notwithstanding that joint or concurrent liability may be imposed upon City by Law, to the extent the same arise or accrue during the Term of this Agreement, Tenant shall, upon demand, indemnify, defend, hold harmless and reimburse City, its elected representatives, officers, employees and agents ( individually, a " City Indemnified Party" and collectively, the " City 17 Packet Pg. 642 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Indemnified Parties") from and against and for any and all liabilities, obligations, penalties, fines, suits, claims, demands, actions, costs and expenses of any kind or nature including, without limitation, reasonable attorneys' fees actually incurred ( collectively, " Costs"), which may be imposed upon or asserted against any of the City Indemnified Parties by reason of:

1. Tenant' s Breach. Any breach, violation or non- performance by Tenant of any term or condition set forth in this Agreement.

2. Use or Occupancy. Any accident, injury or damage to person and/ or property arising from any use or occupancy of the Premises which Tenant may make, permit or suffer to be made or exist, or occasioned by any use or occupancy of or activity on the Premises by or for Tenant or its subtenants or any of their agents, contractors, employees, subtenants or invitees, or anyone claiming through any of them.

3. Tenant Negligence. Any negligence or wrongful act or omission on the part of Tenant or its subtenants or any of their agents, contractors, employees, subtenants or invitees, or anyone claiming through any of them; and

4. Tenant Work and Construction. Any work or thing done by or for Tenant in, on or about the Premises, or any part thereof, including all claims and liability arising by virtue of or relating to construction of the Improvements, alterations thereto or repairs, restoration or rebuilding thereof, unless performed by any of the City Indemnified Parties or any of their agents.

5. Challenge to the Validity of Agreement. Any challenge to the validity of this Agreement not claimed by City, or any part thereof, including administrative, constitutional ( federal or state), equitable or other legal challenges brought in any tribunal or court regardless of remedy sought.

6. Limitations. The indemnity provided in paragraphs ( 1) through ( 4), inclusive, shall not apply to ( a) any Costs to the extent caused by a breach of this Agreement by any of the City Indemnified Parties; ( b) the negligence or willful misconduct by any of the City Indemnified Parties or any of their contractors, invitees or anyone claiming through any of them; or ( c) any claim for diminution in value of the Property or the Improvements or for environmental remediation or clean- up costs arising out of or in connection with the mere fact of having discovered and/ or reported ( as may be required by Law) any adverse physical condition, title condition, or other defect with respect to the condition of the Premises or Improvements, except to the extent that Tenant may have caused the defect to exist.
18 Packet Pg. 643 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

7. Legal Proceedings. If Tenant is required to defend any action or proceeding pursuant to this Section 12.A to which any City Indemnified Party is made a party, such City Indemnified Party shall also be entitled to appear, defend or otherwise take part in the matter involved, at its election, by counsel of its own choosing, and to the extent such City Indemnified Party is indemnified under this Section 12.A, Tenant shall bear the cost of such City Indemnified Party' s defense, including reasonable attorney' s fees actually incurred; provided, however, Tenant shall be liable for attorney' s fees of separate counsel selected by Tenant and reasonably approved by such City Indemnified Party only if a single legal counsel ( or a single firm of legal counsel) cannot represent both Tenant and such City Indemnified Party without there arising an actual conflict of interest.

B. City to Indemnify Tenant. Notwithstanding that joint or concurrent liability may be imposed upon Tenant by Law, to the extent the same arise or accrue during the Term of this Agreement, City shall upon demand indemnify, defend, hold harmless and reimburse Tenant, its shareholders, officers, partners, members, employees and agents ( individually, a " Tenant Indemnified Party" and collectively, the " Tenant Indemnified Parties") from and against and for any and all Costs which may be imposed upon or asserted against any of the Tenant Indemnified Parties by reason of:

1. City' s Breach. Any breach, violation or non- performance by City of any term or condition in this Agreement required by the terms of this Agreement on the part of City to be fulfilled, kept, observed or performed.

2. Use or Occupancy. Any accident, injury or damage to person and/ or property arising from or occasioned by any use or occupancy of or activity on the Premises by City or any of its agents, contractors, employees, invitees or anyone claiming through any of them.

3. City Negligence. Any negligence or wrongful act or omission on the part of City or any of its agents, contractors, employees, invitees or anyone claiming through any of them. For purposes for this section, a condition of the premises shall not be attributed to City as fault, negligence, a wrongful act or omission.

4. Limitation. The foregoing indemnity shall not apply to ( a) any Costs to the extent caused by a breach of this Agreement by any of the Tenant Indemnified Parties or their contractors, invitees or anyone claiming through any of them, or ( b) the negligence or willful misconduct of any of the Tenant Indemnified Parties or their contractors, invitees or anyone claiming through any of them.

5. Legal Proceedings. If City is required to defend any action or proceeding pursuant to this Section 12.B to which any Tenant Indemnified Party is 19 Packet Pg. 644 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request made a party, such Tenant Indemnified Party shall also be entitled to appear, defend or otherwise take part in the matter involved, at its election, by counsel of its own choosing, and to the extent such Tenant Indemnified Party is indemnified under this Section 12.B, City shall bear the cost of such Tenant Indemnified Party' s defense, including reasonable attorney' s fees actually incurred; provided, however, City shall be liable for attorney' s fees of separate counsel selected by City and reasonably approved by such Tenant Indemnified Party only if a single legal counsel or a single firm of legal counsel) cannot represent both City and such Tenant Indemnified Party without there arising an actual conflict of interest.

SECTION 13. SUBLETTING AND ASSIGNMENT
A. Subletting and Assignment. Tenant shall sublet the Premises as necessary to satisfy the performance criteria set forth in Sections 2.B. and 2. C. Except as necessary to let the Premises on a
temporary basis as an event venue ( and
subleasing to the Church and concessionaires), Tenant shall not be permitted to assign, sublet, license or otherwise convey any interest in the Premises. Any agreement entered into by Tenant to let the Premises on a temporary basis for any event shall be in accordance the Mandatory Operations Criteria set forth in Exhibit G (" Mandatory Operations Criteria"), attached and incorporated herein.

B. Non-Discrimination.

1. Covenant. By entering into this Agreement, Tenant covenants by and for itself, successors and assigns, and all persons claiming under or through it or them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision a) or ( d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision ( m) and paragraph ( 1) of subdivision ( p) of Section 12955, and Section 12955. 2 of the California Government Code, in the lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Premises, nor shall Tenant, or any person claiming under or through Tenant, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property.

2. Application. All leases, licenses or contracts entered into with respect to the lease, license, sublease or other transfer of the Property shall contain or be subject to substantially the following nondiscrimination/nonsegregation clauses:
20 Packet Pg. 645 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request A. In leases: " The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:

That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision ( a) or ( d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision ( m) and paragraph ( 1) of subdivision ( p) of Section 12955, and Section 12955. 2 of the California Government Code, in the leasing, subleasing, transferring, use or occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased.

B. In contracts: " The contracting party or parties hereby covenant by and for himself or herself and their respective successors and assigns, that there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision ( a) or ( d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision ( m) and paragraph ( 1) of subdivision ( p) of Section 12955, and Section 12955. 2 of the California Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the contracting party or parties, any subcontracting party or parties, or their respective assigns or transferees, establish or permit any such practice or practices of discrimination or segregation.

SECTION 14. DEFAULT
A. Tenant Default. The occurrence of any of the following shall constitute an event of default on the part of Tenant under this Agreement (an " Event of Default"):

1. Payments to City. Failure of Tenant to make any payment of Rent owing to City within five (5) business days after Notice is provided by City.

2. Nondiscrimination. Failure of Tenant to honor any covenant set forth herein regarding non- discrimination. In that this violation is not subject to cure, Tenant shall have no right to cure. Notwithstanding the preceding, Tenant shall have a right to notice of the alleged violation and shall have opportunity to dispute and/ or answer the alleged violation within fifteen 15) days after Notice is provided by City.
21 Packet Pg. 646 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

3. Breach of Other Covenants. Tenant' s breach of, or failure to perform, comply with or observe any term, covenant, warranty, condition, agreement or undertaking of Tenant contained in or arising under this Agreement such failure continuing for a period of thirty (30) calendar days after Notice is provided by City, which Notice specifies the nature of the asserted breach and the cure City deems to be required.

4. Insolvency.

A. Tenant making an assignment for the benefit of creditors, filing (or having filed against it) a petition in bankruptcy, petitioning or applying to any tribunal for the appointment of a custodian, receiver or any trustee for it or a substantial part of its assets, or commencing ( or having commenced against it) any proceedings under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation Law, whether now or hereafter in effect, in which an order for relief is entered or which remains undismissed for a period of ninety ( 90) days or more; or Tenant by any act or omission indicating its consent to, approval of or acquiescence in any such petition, application or proceeding or order for relief or the appointment of a custodian, receiver or any trustee for it or any substantial part of any of its properties, or suffering any such custodianship, receivership or trusteeship to continue undischarged for a period of ninety ( 90) calendar days or more.

5. Materiality. All breaches in the Agreement which are an Event of Default are to be considered material to this Agreement.

B. City' s Remedies.

1. City' s Remedies. City shall have all rights and remedies available at law or in equity, including, without limitation, the right to specific performance, the right to self-help set forth in Section 14.H, the right to set- off for any breach relating to the payment of money, and the right to terminate this Agreement in respect of any Event of Default under this Agreement.

2. Effect of Termination. Upon termination of this Agreement under this Section 14, all rights and privileges of Tenant and all duties and obligations of City hereunder shall terminate. Immediately upon such termination, and without further notice to any other party, City shall have the right to assert, perfect, establish and confirm all rights reverting to City by reason of such termination by any means permitted by Law, including the right to take possession of the Premises together with all Improvements thereto, subject to Tenant' s rights to remove its property as 22 Packet Pg. 647 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request provided herein, and to remove all persons occupying the same and to use all necessary lawful force therefore and in all respects to take the actual, full and exclusive possession of the Premises and every part thereof as City' s original estate, thereby wholly terminating any right, title, interest or claim of or through Tenant as to the Premises or the Improvements or fixtures and alterations to the Improvements, and all personal property located on the Premises, all without incurring any liability to Tenant or to any person occupying or using the Premises for any damage caused or sustained by reason of such entry or such removal, except for damage resulting from City' s negligence or willful misconduct in affecting such removal. Notwithstanding the foregoing, City shall use commercially reasonable efforts to mitigate its damages.

C. City Default. The occurrence of any of the following shall constitute an event of default on the part of City under this Agreement ( a" City Event of Default"):

1. Breach of Covenants. City' s breach or failure to perform, comply with or observe any term, covenant, warranty, condition, agreement or undertaking of City contained in or arising under this Agreement and such failure continuing for a period of thirty ( 30) calendar days after Notice thereof is given by Tenant to City, which Notice specifies the nature of the asserted breach and the cure Tenant deems to be required.

2. Insolvency.

A. City making an assignment for the benefit of creditors, filing ( or having filed against it) a petition in bankruptcy, petitioning or applying to any tribunal for the appointment of a custodian, receiver or any trustee for it or a substantial part of its assets, or commencing ( or having commenced against it) any proceedings under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation Law of any jurisdiction, whether now or hereafter in effect, in which an order for relief is entered or which remains undismissed for a period of ninety ( 90) days or more; or City by any act or omission indicating its consent to, approval of or acquiescence in any such petition, application or proceeding or order for relief or the appointment of a custodian, receiver or any trustee for it or any substantial part of any of its properties, or suffering any such custodianship, receivership or trusteeship to continue undischarged for a period of ninety ( 90) days or more;
D. Tenant' s Remedies. Tenant shall have all rights and remedies available at law or equity for any City Event of Default, including the right to terminate this Agreement and the right to Self-Help set forth in Section 14. H., in respect to any City Event of Default under this Agreement. Because the Premises are public 23 Packet Pg. 648 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request property held in the public trust for the residents of the City of Redding, specific performance shall not be available to Tenant as a
remedy. Monetary damages
shall be limited to that amount equal to four ( 4) months' rent, as indicated in Section 3.B., at the time of the City Event of Default.

E. Notice and Cure Periods. City and Tenant acknowledge and agree that, except as provided in Section 14.A.2, no Event of Default or City Event of Default shall have occurred under this Agreement unless and until any and all applicable Notices shall have been given and cure or grace periods shall have expired.

G. No Waivers. No failure by any party hereto to insist upon the strict performance of any provision of this Agreement or to exercise any right, power or remedy consequent to any breach thereof, and no waiver of any such breach, or the acceptance of full or partial Rent or other payment during the continuance thereof, shall constitute a waiver of any such breach or of any such provision. No waiver of any breach shall affect or alter this Agreement, which shall continue in full force and effect, or the rights of any party hereto with respect to any other then existing or subsequent breach.

H. Self-Help. In case of an Event of Default or a City Event of Default resulting from a failure to pay any money or to do any act to satisfy any of the obligations or covenants which a party is required to pay, do, or satisfy under the provisions of this Agreement, the non- defaulting party may, at its option, after Notice to the defaulting party, pay any or all such sums, do any or all such acts or incur any expense whatsoever to remedy the failure to perform any one or more of the covenants herein contained. The defaulting party shall repay the same on demand, together with interest at the rate provided in Section 15.M hereof calculated from the date payment is made by the non- defaulting party.

No Personal Liability. Neither City nor Tenant nor any of the persons comprising City or Tenant ( whether partners, members, shareholders, officers, directors, members, trustees, employees, beneficiaries or otherwise) shall ever be personally liable for any judgment obtained against the other for breach of any obligation hereunder.

SECTION 15. MISCELLANEOUS
A. No Partnership. Nothing contained herein or in any instrument relating hereto shall be construed as creating a partnership or joint venture between City and Tenant or between City and any other party, or cause City to be responsible in any way for debts or obligations of Tenant or any other party.

B. CEQA Compliance; Condition Precedent. City hereby retains absolute and sole discretion to ( i) modify this Agreement, in its sole discretion, in order to comply with CEQA, ( ii) select other feasible alternatives to avoid significant environmental impacts, ( iii) balance the benefits of this Agreement against any 24 Packet Pg. 649 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request significant environmental impacts prior to taking final action if such significant impacts cannot otherwise be avoided, and/or ( iv) determine not to proceed with this Agreement. City shall have no legal obligations hereunder unless, and until, its has completed the CEQA review process and unless, and until, Tenant has received all necessary entitlements. Should City elect to modify this Agreement consistent with its findings under CEQA, it shall provide prompt written notice to Tenant of its election to amend this Agreement consistent with its CEQA review.

Tenant shall have thirty ( 30) calendar days upon receipt of said notice to enter into the amendment proposed by City or, in the alternative, cancel this Agreement without liability to City.

C. Time of the Essence. Time is hereby expressly declared to be of the essence of this Agreement and of each and every term, covenant, agreement, condition and provision hereof. The word " day" means calendar day as used for computation of time periods herein and the computation of time shall include Saturdays, Sundays and holidays in the Governing Jurisdiction. The phrase " business day" means any day on which commercial banks are generally open for business in the State of California ( other than a Saturday, Sunday or legal holiday in the State of California). Any period of time calculated in days which would otherwise end on a non- business day shall be extended to the next following business day.

D. Captions. The captions of this Agreement and the table of contents preceding this Agreement are for convenience and reference only, are not a part of this Agreement and in no way amplify, define, limit or describe the scope or intent of this Agreement, nor in any way affect this Agreement.

E. Meaning of Terms. Words of any gender in this Agreement shall be held to include any other gender and words in the singular number shall be held to include the plural when the sense requires.

F. Agreement Construed as a Whole. The language in all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning and neither strictly for nor against City or Tenant.

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

H. Survival. Each provision of this Agreement which may require the payment of money by, to or on behalf of City or Tenant or third parties after the expiration of the Term hereof or its earlier termination shall survive such expiration or earlier termination. All indemnity obligations shall survive termination of this Agreement.
25 Packet Pg. 650 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Entire Agreement; Amendment. This Agreement and the exhibits hereto constitute the final and complete agreement between the parties with respect to the transaction contemplated herein, and supersede all prior correspondence, memoranda and agreements ( oral or written) between the parties relating to the subject matter hereof, including, without limitation, any letters of intent entered into between the parties. This Agreement may be amended only in a writing signed by both City and Tenant.

1. The City Manager is authorized to act on behalf of City to amend this Agreement or otherwise make prudential decisions relating to the same so long as the scope of amendment does not negatively impact revenue to City or otherwise effect a substantial change to the Agreement.

J. Commissions. In the event any claims for real estate commissions, fees or compensation ( collectively " Compensation") arise in connection with this transaction, the party so incurring or causing such claims or whom the claimant asserts to have represented agrees to indemnify, defend and hold harmless the other party from any loss or damage, including attorneys' fees, which said other party suffers because of said claims.

K. Notices. All notices, demands, requests, or other writings ( each a " Notice") provided by the terms of this Agreement to be given or made or sent, or which may be given or made or sent, by either party hereto to the other, shall be in writing, shall be given by ( a) personal delivery, ( b) delivery by a nationally recognized overnight delivery service, ( c) mailing or depositing same in the United States mail, registered or certified, return receipt requested, postage prepaid, or ( d) facsimile ( if a copy of such notice also is delivered by any other permitted method of delivery along with evidence that the facsimile was transmitted successfully), and in all cases shall be properly addressed to the parties at the following addresses:

City: City of Redding
Attention: Barry Tippin, City Manager
777 Cypress Avenue
Redding, CA 96001
Facsimile No.: ( 530) 225- 4325
With a copy to: Office of the City Attorney
Attention: Barry DeWalt, City Attorney
777 Cypress Avenue
Redding, CA 96001
Facsimile No.: ( 530) 225- 4362
26 Packet Pg. 651 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Tenant: Advance Redding
Attention: Julie Dyar??
700 Auditorium Dr.

Redding, CA 96001
Facsimile No.:

With a copy to: Brown and Streza, LLP
Attention: Casey S. Hale
40 Pacifica, Suite 1500
Irvine, CA 92618
Facsimile No.: ( 949) 453- 2918
or to such other address as either party may from time to time designate by Notice to the other. All Notices shall be deemed duly given upon actual receipt or refusal to accept delivery. Notices may be sent by the parties' respective counsel.

L. Attorneys' Fees. In any proceeding or controversy associated with or arising out of this Agreement or a claimed or actual breach hereof, or in any proceeding to recover the possession of the Premises, the substantially prevailing party shall be entitled to recover from the other party as a part of the substantially prevailing party' s costs, reasonable attorney' s fees and court costs, the amount of which shall be fixed by the court or arbitrator and shall be made a part of any judgment rendered.

M. Interest. Except as otherwise specifically provided herein, any amounts due from one party to the other pursuant to the terms of this Agreement, including amounts to be reimbursed one to the other, shall bear interest from the due date or the date the right to reimbursement accrues at the prime rate of interest published in The Wall Street Journal, or similar publisher of business statistical data; provided, however, that such rate shall not exceed, in any event, the highest rate of interest which may be charged under applicable Law without the creation of liability for penalties or rights of offset or creation of defenses. For purposes of interest calculations, the due date of amounts or the date the right to reimbursement accrues shall be deemed the date that it originally was owing but may have been disputed, as distinguished from the date of final settlement or the making of a judicial or arbitration award.

N. Consents and Approvals. Whenever the consent or approval of City or Tenant is required hereunder, such consent or approval shall not be unreasonably withheld, conditioned or delayed unless expressly set forth in this Agreement otherwise.

Any consent or amendment to this Agreement which does not have a deleterious affect on amounts due City may be approved and executed by the City Manager.

0. Governing Law. This Agreement shall be construed according to and governed by the Laws of the State of California.
27 Packet Pg. 652 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request P. Force Majeure. In the event that either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes; lockouts; labor troubles; shortages of labor or materials generally applicable to the locality of the Property after due diligence in obtaining the same; unavailability or excessive price of fuel; power failure; riots; insurrection; civil disorder; war; terrorist acts; acts of the public enemy; fire or other casualty; condemnation; acts of God; unusually adverse weather conditions in the locality of the Property; governmental restrictions; temporary or permanent injunction or other court order; or by reason of any cause beyond the exclusive and reasonable control of the party delayed in performing work or doing acts required under the terms of this Agreement after the exercise of due diligence, including diligence in contracting, and the exercise of rights under contracts with contractors and suppliers ( each, an " Event of Force Majeure"), then performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay.

Except as otherwise provided in this Agreement, the provisions of this clause shall not operate to excuse Tenant from prompt payment of Rent or either party from the prompt payment of any other payments required by the terms of this Agreement.

Q. Counterparts; Facsimile Signatures. This Agreement may be executed in more than one counterpart, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile signatures on this Agreement or any Notice given hereunder shall constitute originals signatures of the parties.

R. Quiet Enjoyment. City covenants that Tenant may quietly and peaceably have, enjoy, and hold the Premises and rights hereunder for the full Term without hindrance, provided that no Event of Default by Tenant exists under the Agreement. City shall defend, indemnify, and hold Tenant harmless from and against any and all losses, costs, expenses, liabilities, claims, causes of action and damages of whatsoever kind that may result to Tenant, including reasonable attorneys' fees incurred by Tenant, arising from the wrongful disturbance of Tenant' s quiet possession: ( i) by City; ( ii) by persons deriving title from City; ( iii) because of liens or encumbrances incurred or suffered by City; ( iv) because of title paramount to City' s; or (v) because of any defect in City' s power or authority to execute and undertake City' s obligations under this Agreement except as provided for in Section 12.A.5. City' s duty to indemnify Tenant under this Section 15.R. shall survive the expiration or earlier termination of this Agreement.
28 Packet Pg. 653 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request S. Exhibits. All exhibits referenced in this Agreement are incorporated into and made a part of this Agreement as if fully set forth herein. Exhibits are as follows:

1. Exhibit A—Legal Description.

2. Exhibit B— Depiction of Premises.

3. Exhibit C - Lawn Area Map.

4. Exhibit D— Equipment Maintenance Schedule.

5. Exhibit E— Maintenance Compliance Sheet.

6. Exhibit F— Equipment Schedule.

7. Exhibit G— Mandatory Operations Criteria.
29 Packet Pg. 654 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request IN WITNESS WHEREOF, City and Tenant have executed this Agreement on the days and year set forth below:

CITY OF REDDING,
A Municipal Corporation
Dated: l2"/ 2021
By: Kristen Schreder, Mayor
ATTEST: APPROVED AS TO FORM:

City Attorney
LA,1/4) 2— 0117\ k4 tPAMIZE, City Clerk By: ` CeC I

ADVANCE REDDING
Dated: /( 9// , 2021.

Tax ID No.:
30 Packet Pg. 655 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

EXHIBIT A
A parcel of land, situated in a portion of Sections 11 of the P. B. Reading Grant, City of Redding, County of Shasta, State of California, more particularly described as follows:

Commencing at a point on the northerly line of California Route 299 as shown on that certain map entitled " STATE OF CALIFORNIA DIVISION OF HIGHWAYS DISTRICT 02 RECORD OF SURVEY OF MONUMENTATION IN SHASTA COUNTY ON ROUTE299 PM24.5 TO P.M 25.7'; Sheet 3 of 4, filed in Book 36 of Land Surveys at Page 79, Shasta County Records; thence on and along said northerly line of California Route 299 , South 63° 25'22" East South 63° 32' 22" East per said map), 64.28 feet;
thence South 72° 14' 22" East, 255.80 feet;
thence South 84°25'40" East, 669. 16 feet to a point on the Turtle Bay Ground Lease, 5th Addendum;
thence leaving said northerly line, on and along said Turtle Bay Ground Lease North 78° 51' 55" West, 702.40 feet;
thence along a 518.43 foot radius curve to the right, having a central angle of 18° 14' 10", a length of 165. 01 feet;
thence North 60°37'45" West, 260.94 feet;
thence North 84°25' 31" West, 47.43 feet;
thence North 84°25'40" West, 35. 00 feet;
thence North 05°34'20" East, 147.09 feet;
thence North 29°06'45" East, 305.69 feet;
thence North 15° 31' 27" West, 186.35 feet;
thence North 36° 15' 14" East, 31. 05 feet;
thence North 52° 36'43" West, 185.78 feet to the TRUE POINT OF BEGINNING; thence continuing on and along said Turtle Bay Ground Lease and the extension thereof, North 52° 36'43" West, 537. 92 feet;
thence leaving said extension of said Turtle Bay Ground Lease along a 330.00 foot radius curve to the left, the center of which bears South 39°50' 06" East, having a central angle of 12°46' 38", a length of 73. 59 feet;
thence South 37°23' 17" West, 838. 71 feet;
Packet Pg. 656 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request thence South 52°36'43" East, 70. 12 feet;
thence along a 1240. 00 foot radius curve to the left, the center of which bears North 37°23' 17" East, having a central angle of 06°30' 00", a length of 140.67 feet; thence along a 1330.00 foot radius curve to the right, the center of which bears South 30°53' 17" West, having a central angle of 06°30'00", a length of 150. 88 feet; thence South 52°36'43" East, 14. 17 feet;
thence along a 300.00 foot radius curve to the left, the center of which bears North 37°23' 17" East, having a central angle of 22°05'59", a length of 115. 71 feet; thence North 37°23' 17" East, 408. 37 feet;
thence South 52°36'43" East, 77.85 feet;
thence North 11° 00'55" East, 55.97 feet;
thence North 26°23'36" West, 205.95 feet;
thence North 37°23' 17" East, 125. 95 feet;
thence South 78° 32'04" East, 211. 00 feet;
thence North 37°23' 17" East, 105.44 feet to the TRUE POINT OF BEGINNING.

Containing 9. 76 acres more or less.

End of Description
Bearings hereon are base on the original Turtle Bay ground lease dated January 7, 1992, which is the northerly line of California Route 299 as shown on that certain map entitled STATE OF CALIFORNIA DIVISION OF HIGHWAYS DISTRICT 02 RECORD OF SURVEY OF MONUMENTATION IN SHASTA COUNTY ON ROUTE 299 P.M 24. 5 TO P.M 25. 7", Sheet 3 of 4, filed in Book 36 of Land Surveys at Page 79, Shasta County Records, rotated clockwise 00°07'00". All distances hereon are ground. To obtain grid distances, multiply ground distances shown by 0. 99987965.

DATE: 9- 20 2
Charles Ken Iwamura, City of Redding Surveyor
PLS 8540
St`
4CHARLES IGEN
G\
rr 11.N MURA o
a z
iVo. 8540
f
OF CA‘.V
Packet Pg. 657 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

EXHIBIT B
V12,04„,_ tis
43 u
p1
1 h TRUE POINT OF BEGINNING
11 G1 N
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a, 1 e . l
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I S

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ry ,
V1111
ti . 277. 00•
E
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N36' 15' 14" E
w h
11°'. 144i111 i1 M\' h' 31. 05' i ti 1 iU( kl i a 2 / 1 Q # 11111111 i a Z'
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W
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ralattk fu,., a! a
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ta
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F EXISTING GROUND LEASE
2064 r*0. ^
tip
IL?' 5th ADDENDUM F C3 '-" Qhi ak1!' ^ W
N84' 25' 40" W
2 C4 vi
135.00'
184.25' 31" W'

47. 43'
Sys?3ZIN60'3T45" W CITY OF REDDING TO STATE OF
sy 260.94'
CALIFORNIA PER 2006-0052505
N R= 518. 43'
18' 14' 10"
i
7-L= 165. 01'
POINT OF COMMENCEMENT—/
S?'
7q Z N7 51 55, i, 702 187' LT. STA " C" 51+ 90 255.80,
2' e 40'
PER 36 LS 79, SHEET 3
S84' 25' 40" E 669. 16' 563' 25' 22" E

64.28'
q
SUNDIAL BRIDGE DR.— C HWy, 44 (FORMER ST. HWY. -----

CURVE DATA

C RADIUS DELTA LENGTH
Cl 330.00' 12°46' 38" 73. 59'
C21240. 00' 06°30' 00" 140. 67' NOTE
C31330. 00' 06°30' 00" 150. 88'
C4 300.00' 22°05' 59" 115. 71' BEARINGS ARE BASED ON THE ORIGINAL TURTLE BAY GROUND LEASE DATED JANUARY 7, 1992 WHICH IS 36 LS 79 ROTATED CLOCKWISE 00° 07'00". ALL DISTANCES SHOWN ARE GROUND.

RADIAL BEARING DATA

THIS MAP IS BASED ON RECORD DATA AND DOES NOT REPRESENT A R BEARING SURVEY. IT IS INTENDED FOR USE AS AN EXHIBIT FOR THIS LEASE R-7 S 39°50' 06" E ONLY.
02 N 52°36' 43" W
73 N 37°23' 17" E
74 S 30' 53' 17" ` J AREA OF LEASE( 9. 76 ACRES)
R5 N 37°23' 17" E
76 S 15°17' 18" W

ENGINEERING DIVISION LEASE SITE
tmil
o CIVIC AUDITORIUM
PORTION OF APN: 102- 020- 015
SEPTEMBER, 2021
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Packet Pg. 661 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

EXHIBIT E

MAINTENANCE COMPLIANCE SHEET
In accordance with Exhibit D " Equipment Maintenance Schedule", maintenance was provided for the following equipment in the month of 20
Initials Description Date
Pneumatic air compressor
Hot water motor& pump
Hot water motor& pump
Cold water motor& pump
Cold water motor& pump
Hot water recirculating motor&
pump
Hot water storage motor& pump
Forklift# 105
Forklift# 106
Restroom vents
Handicap doors
Check wheelchair lift
Check bolts& nuts on all seats
Servicing of the stage roll- up door
Clean heating and cooling vents
Check water heater
Cleaning of grease traps
Seal entryway beams
ChubCo Oven
Balcony lift
Signed
Date
Packet Pg. 662 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Equipment
Model Number
If Known Location
Condition
Discard Value
FOH Sound Console Allen& Heath GL3300 L3K3M32A002570 Booth ..':' --:.---,:;:::BR 7, 500 Lighting Console ETC Express 48/ 96 41797EXPS1747 Booth C R 7, 500 Compressor/Gate/ Limiter DBX 166XL V 1005265 Booth A R 340 Compressor/Gte%Limiter DBX 166 7716655243 Booth A R 340 Compressor/Gate/ Limiter DBX 166 C6797 Booth A R 340
Compro essr/Gate/ Limiter. DBX266XL IIV 27017 BoothAR ' ,.:$ 210 Compressor/Gate/ Limiter DBX266XL IIV 24895 Booth A R 210 Compressor/Gate/Limiter` DBX266XL IIV 24891, BoothA R.. 210k Dual Effects Processor Lexicon MPX550 1004 Booth A R 400 Dual Effects Processor TC Electronic's M OneXL s W 3524932 Booth A R 560 Dual Effects Processor TC Electronics M- OneXL 3524075 Booth A R 560 Dual 31 Band EQ Ashly. GQX3102i'- 703. 9397 Booth A ..• •, R 775- ..

Single 31 Band EQ Ashly GQX3101 701- 5187 Booth A R 475 Power Supply Ailen& Heath RPS 9
s' 120835569: Booth D D: 1, 100
Condition Legend A= Like New B = Minor wear& Tear C = Scratches may have some parts missing still functional D = Parts Or Needs Repair
Packet Pg. 663 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request I
Exhibit F - Redding Convention Center Technical & Stage Inventory Serial Number Equipment
Condition D scar
Audio
Stage & Technical
Model Number
If Known Location
RetainisrRnetpvlaacieumee
Equipment
Audio Analyzer DOD RTA Series II N/ A Booth C R 295
r'!'-'-::''''-''".•.. 1:-''.''.;''. 4:':.::.:'.'....
ii'''..:' ,: P1§-'-,.. i4iA ....:.;-,: cf-:-.. i':::,:i:,-,. - Booth -.,:•,,..!-.,:.... 3 ----: 7,-;•-•'-.:' 7,-...•.., .. . ,L,-.,_-,.--!,-•,;.,,:. - oVVer,-Conqitioher, *• Furman" '„:,:: C 230
34-,-:,•,-. i.:-:.„,,'. .,,'----,---• ---,,-' - - — - ' Genz-Benz N/ A Booth C R 675
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37 IiteFCOft: v9W0(4§ Y9_ 1" 4e16ar5: - ?$24. 1A-001220 BoothPbPth C R121uk•,'
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InterCom Station ClearCom MR102A N/ A Booth D R 325
InterCon: StaffOry- • ; CHea1190m.„..MR, ,. . •;., Booth D R 325 InterCom Belt Pack Production Intercom BP2 N/ A Booth D R 314,., .,, , ,, ., ,.., t;
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X4hon-? 0(DOVV,,,.....,:.•-•,:-.,.,•,,,,,,, .--,• - - • Follow Spot Power Supply N/ A 2083 Booth B R 3000
Follow 6:::-,::::-,: s : w,,:,: pot Power Supply ;:.:.: --:-' .'.:,(,.;,:,,;'••,,,,',..,-:',,::...,:::::( i„,7Ti.".,:;- 30017:i,,,,.:
1,: ic-:-',.,,!'.::: 2!?,:7::::,,,:::•••.`:::....,,:,:. 1 „,;,;::...;:::.- 4::;%::;:: f::::-.,,_ -:-..:-:•,;&.',,-:::':.:',: 1:! ,•,:, 6,.,- ; .. i,:: iic7: ::,„:.-:?..,--.;:::-.: leaom,:"' ' ','''' ;.!::),';,. 1' 89'''''- i i,411N'',.;.: T•...,",'; 5",iN/ANI-,,":..'"-" --''' 0''' ' : 139-oth,:• `::::-. 1-:--,:. .!"-',.::::::-'-'-,:-, • : ,:-' .'' -'' ""'' ' ' ff.,',>;•'''"';',;',":,";:;" 4-T,"=';''' „
t:..-" F1,:' iiii6i- dii-i-,iHeWS:Pt:-, i.,;'''SeneSII- , - ,,-,..--.- Mixer/Amplifier Bogen CT- 60 J- 55 Booth D D 50
Condition Legend A= Like New B = Minor wear& Tear C = Scratches may have some parts missing still functional D = Parts Or Needs Repair
Packet Pg. 664 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Model Serial Number Equipment Retain Replacement Equipment Number If Known Location
Condition
Discard Value
Walnut Finish Printer Stand N/ A N/ A Booth B R
4,Drawer,File Cabinet Steelcase City, ID`Tag 03206 Booth B R 3) 4ch Inse t Snakes Hoes N/ A Booth B' • R
2 Plastic File Cases Green/Tan N/A Booth C R
26 Follow Spot Gel Frames N/A N/A Booth C R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 665 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F- Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Equipment
Model Number Condition
If Known Location Discard Value
Audio Power Amp QSC 4050HD 080430951 ' ' . Stage Bs ' •- R - ,- Audio Power Amp QSC 4050HD 080430952 Stage B R
Power Amp QSC 4050HD 080430956 Stage „, t.,--:,-. Ba ,...•, R;;,-....-y..?...;‘,.;„:...,., 4;......;-. 1i; F °'
Audio Power Amp QSC 4050HD 080430955 Stage B R
Audio Power Amp 055 4050HD. 080430950 Stage;; B'' , R'.' Audio Power Amp QSC 1850HD 010826406 Stage B R
Audio Power Amp - 0801850HD; 010826241. Stage: C R'
FOH Speakers Mid/ Hi EAW LA460 335811 Stage C R
FOH Speakers Mid/ Hi ` EAWLA460 `: 335808 Stage ' F C R FOH Speakers Mid/ Hi EAW LA460 335809 Stage C R
FOH Speakers Mid/ Hi EAW LA460 . • 335810 Stage: C;' R . , FOH Speakers Mid/ Hi EAW LA460 332413 Stage C R
FOH Speakers Mid/ Hi EAW LA460 335536 Stage C" R
FOH Speakers Subs EAW SB218z 335859 Stage C R
FOH Speakers Subs EAW SB218z 335868 Stage'' . C' R.

DSP Speaker Processor EAW MX8750 300590 Stage C R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 666 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Equipment
Model Number Condition
If Known Location Discard Value
Dual 31 Band Graphic EQ . Ashly_GQX3102 703- 1556 Stage C Ra` Graphic EQ 31 Band Yamaha GQ1031 GX01039 Stage C R
Graphic -.6:27..Band Peavey EQ27CA510239 Stage C R
Graphic EQ 27 Band Peavey EQ27 CA716156 Stage C R
Audio PowerAmplifire 1 Yamaha P1250C PZ01006 Booth C"-{ R Audio Power Amplifire QSC MX300A 99906341 Stage B R
Audio Power Amplifire Yamaha P2700 Q001059 Stage C R
Audio PowerAmplifire Yamaha P2700= QL01059 Back Room C R Metal Equipment Rack For Monitor Audio System N/ A Stage C R 2or 3 way•Active•Crossover Ashly XR1001 G11- 8067 . Stage. C.,:..;.,!..-...,- R 2 or 3 way Active Crossover ElectroVoice EVT EX18 1040076 Stage C R 2;Metal Speaker Stands Atlas" N/ A Third Floor ' 6 C R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 667 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain
Model Number Condition
Discard Replacement Value
Equipment If Known Location
Small Parts Box Klien Tools N/ A' Backroom ; C R
Microphone Snake Cable Whirlwind;,32X10 225Ft N/A, Booth/Stag B R Curtain Control and Motor H& H Specialties 462 N/ A Stage B R K 12! 220V Extension Cables 70FT N/ A = Third Floor B R 10`FOH 5 De 9ree Sta99eli" hts' Altman, 1 KL8 N/A':- Attic D R 8 FOH 12 Degree Stagelights Berkey/ Colortran N/ A Attic D R 4 FOH`Stagelights . Altman.360Q 6X22 N/ A: Attic D R
16 FOH Par64 Stagelights BeCirkey/ ColortranneQueen N/ A Attic D R 14 3pin Extension Cables 10Ft N/ A Attic D R
4 3prn Extension Cables
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 668 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F- Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain
Model Number Condition Replacement Value
Equipment If Known Location o sea d P
ai 3
16Scoop- Lights ``, " Altman 14 . N/ A ; Stage B • R
5 4cell Cyc Lights Berkey/Colortran
N/ A Stage C R
SkyCyc
24 8 Fresnel Lights Major Corp. _ N/ A Stage - D D
48 Par can Lights L/ E Par64 N/ A Stage 24 A 24B R
12 LekoLights Altman 3600'6X16 N/ A Stage '. D ,' R
18 Leko Lights Altman 360Q 6X12 N/ A Stage D R
18 Leko Lights Altman 3600 6X9' _- N/ A Stage D ' R
18Ft Step Ladder On Wood Rolling Base N/ A Stage D D
Cyclorama 30Ft X 60Ft Sky Blue N/ A Stage D D
2 Grand Drape Panels 30Ft X50Ft Green ='. N/ A Stage . C ,.- R 2 Drape Panels 30Ft X 50Ft Black N/ A Stage C R
1 Grand Valence . c15Ft X`.85Ft Green. N/ A Stage C R
5 Teaser Drapes 15Ft X 60Ft Black N/ A Stage C R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 669 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center Technical & Stage Inventory Stage & Technical Serial Number Equipment Retain Replacement Model NumberCondition
Equipment If Known Location Discard Value

4. k.',
1611p0f.?ze--,-;' Stgearps'(6..-10) 13F_..," t'.':X,2il4kt. B.--, ia,.,k,..'.'-....' N/Ai,-,.;', A
Sta§
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12 Stage Drapes 13FT X 30Ft Black N/A Stage C R
Fly System '• . .,. .-- PEFM, Ifigtall_Stage',. '- . -, •'':.-:.;, N/A4:::;-. 1- 4-.'-:.'•. - ,' Stade,1.-,':-',;-''''-''-':% '-',; 13''':" '. '...,, R Fly System Counter JR Clancey 6000Lbs N/ A Stage B R
Weights
Lt',,,e.R.::.,:
r-.-„,..--,,-,-,...:,-,?-
4--,,,,,-.:,.,,..--.,,, J.,....-:-.-.-! '.,-.,', '',::::',;.--,,-,'SV.,i1-07:--y.i,-,f.,,,jnpl,• T--:, r,.',
Y,; 5'ErMi' V."'`'''',,''',-. r'. 4'.': '-''' 1.1.:'-'.'''' TJ'''.''19.i:9';IV'''4-' aifi!,:17.-. 1%,-,''' ,.:i. :. i''''''.','-.;.- 1-. '14,_6--:-- Y2--ZMI-Vc,',",..'.. ;`,! 2, 1. 1..,,'.. 5 11: 2'..f:alick Music Stands 4'.4 ', Manhasset/Peaveyy.,-,., .-.,.--:'.."-:-. 2"_!,- ,:! ,'-'-':„..- N/AStage 4_;-.'•:'-' j ''',!'!_ gr'-','''; : rf,..;,,,, :'.. i:111,7:- :'..,'''',.,; : .:?, ..-:-.-- 7., 4 Music stand Lights N/ A N/A Stage C R
2 15Ft Lighting Trees N/ A N/A Stage B R
171eqpipt! -..-.;•- 7: ....1`:..__,:. Telpx,Y2? 0 . ',.' : . . N/A Stage .,: i:.'.:.-'----,'-.'-.- '.' R Anchor Audio Single
2 Headsets
Muff
N/A Stage R
A66i6rA6--- d-'-i60-.----- 66--•• bre '.- .; ,.•-.-.1-•'.. ie-- -" ' 5 Headsets N/A Stage R
Muff
2 Intercom Belt Packs ClearCom 501 N/A Stage R
2 Intercom Belt Pack - - CleaeCottiiARS --,- 7, , '. • '."-::-. NiA--`,. i:',."---'''' -'-;:'- Stagef; ;',---7,•---.;-j-_, 1-_-::::';--,-- k - ,. 3...J- iR 6 Canvas Hampers Dandux 3X4X3 N/ A Stage B R
2WbEid,"rIbt4DcillieS -'. Custom Built In House --'';'';',-. 17,c.N/ 1V---,;,me--If - P'-,';,',•'., iStage.'''''' ' B,'''-, ,-,*,, R.,;-J.,;,. 10 XLR Cables 25Ft N/A Stage R
Dn4X-',5Piti-.) ILWCpble5k.,TT,',',-,.., 2,-', '',', , ' .,','-' , .7• N/A'') i,:ff::17-.:::' ---"--!,: Stadr-:;:-.----:'-'''',-,-'' ,- R 2 2 Drawer Metal
with Various Cuts Of Gel N/A Dimmer Room B R
Filing Cabinets
6 Drawer Cardboard'±-,---.. .;--,
With FUll."ShpetS-Of Gel' .-, '' ,:,....", N/ A- i'41-;,.. Dimmer Room ----:-;!:',-C--2,:,--,:',..,, iR Fiber:JFiliri ,-..(jat-iinet ..',. -,'..-------,-,,,---..,--.1-,' .,..:' :•; . .. ';,' r.- z----
7,,,
H1.. ,,,...,..,-,:;.?,-'-',. i..X`f,i---:,,,-,',..',,,,,. ,,-. • 7 Cardboard Gel Templates Custom Built In House N/A Dimmer Room B R l t I Ro
v\litrailsiu'eghi:Whiie":1- 6j6• ' Cu tom,..,, u!„.; ,,i,-1- Ho...19.L,•)! .:. :.„;:„ N/A -- , Din390j11: 1,Mefi)

1. R
Oscilloscope Heathkit EUW- 25 7- 1186 Dimmer Room C R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 670 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Equipment
Model Number
If Known Location
Condition
Discard Value
Assorted Gel Frame Spares NIA N/ A Dimmer Room B RMisr Small Dimmer Parts In Cardboard Box N/ A Dimmer Room C R 1 Box Misc Dimmer Parts SCR' s/ Insulators N/ A Dimmer Room C R 4 Allen Wrenches Various Sizes N/ A
s Dimmer Room = B • R
Grounding Cable 25Ft With Clamp N/ A Dimmer Room B R
With Twee Co
1 Sets Wire Tads N/ A Dimmer Room B R Connectors .' z,
2 Grease Pencils N/A N/ A Dimmer Room B R
M k
1 Pair-Scissors N/A N/ A Dimmer Room B+ R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 671 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Equipment
Model Number Condition
If Known Location Discard Value
Stage Monitor Speaker Yamaha CM15V 21) 0N01130 Back Room B R StageyMonitor Speaker Yamaha CM15V 21) 0N01129 Back Room B R Stage Monitor Speaker Yamaha CM15V 21) 0N01145 Back Room B R Stage Monitor Speaker Yamaha CM15V :( 21) 0N01'110 = Back Room B, " R Stage Monitor Speaker Peavey 115CX 5E2270278 Back Room D R a Stage,*Monitor Speaker Peavey 1545M` 6E02747237 Back Room D '-, R Stage Monitor Speaker ElectroVoice FM12- 2A 1700071259 Back Room D R Stage Mondor Speaker ! ElectroVoice FM12-2A 4:1700071263 ',..,;;; Back-Room D ; R; t 1 Speaker Stands N/ A N/ A Back Room B R
4 Spring Clamps N/ A N/ A Back Room R
SHUS` Dist-Tag Variable Power Supply 7;. °; g Back Room :.:. 7:7,',:!-,..,,;- 4.-.--", D ` i;,....,.:.;,.';,::' R-;
0277.1'
3 Boxes Misc Parts Altman 360Q 6x Lekos N/ A Stage D R
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 672 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain Replacement Model Number Condition
Discard Equipment If Known Location Value
6 Instrument Mics Shure SM57 N/ A Back Room B R 124 ea
8' Vocal Mics Shure SM58 N/A Back Room 2A 6B R 124,ea
1 Vocal Mic Audix 0M5 256067- 332 Back Room C R 235
y" 1 Direct Boxes ProCo AV 1 N/ A Back Room C •: R 173
k a,......x Wim: ..... a- '. .:- . a. L. .... 4 ,., _ i.- n. . x,..... , 2 Direct Boxes Horizon N/ A Back Room C R 65 ea
Vocal Mic ElectroVoice RE16': 7923 Back Room ' C R 407
Instrument Mic ElectroVoice RE15 7212 Back Room C R 379 Instrument Mic ElectroVmce RE15-' 7212 Back Room C ',-.',.:' Rt,,":..'`''''. 4- 4.$37.9-- Instrument Mic ElectroVoice RE15 7740 Back Room C R 379 Instr'urrient Mic `_ ElectroVoice RE15 _ 7740 Back-Room - C R 379' ' ` Instrument Mic Audix i5 156100- 177 Back Room C R 150
Instrument Mic Audix i5 . r.-,',,''';‘:;. 1-..74..i-ii,‘ i,
156100 180: ` Back Room rte': ; C `", : R!..",(..,.. .:?..,; t41.,...R!'.-'4-2,54 ::.:„,..'.:','° $ 150 Drum-Mic Kit q ,. ,: Shure PGDMK6 N/A Back Room B R 422 Condenser Mic AKG C451 EB 556947 Back Room B R 799
Condenser Mic y AKG C451 EB 557265 Back Room ' B R 799
Condenser Mic AKG C451 B 26640 Back Room B R 799
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 673 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request I
Exhibit F- Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment RReplacement
Equipment
Model Number
If Known Location
Condition
DRi Value
Instrument ,MicSennheiser MD,-4-2_,1„41--, 1-::. ' 201412 Back Room B ` R ;$ 570 4 3" Desk Stands( mic) N/ A N/ A Back Room C R
47 Desk Stands( mic) : DSZ N/A Back Room C R s
1 away Power tap Orange N/ A Back Room R
4 6 Flexible' Mic stand
N/ A N/A ,, i ° Back Room D R
Adapters
4 18" Flexible Mic stand
N/ A N/ A Back Room D R
Adapters
118" Floor Boom Stand( mic) ., N/ A N/ A Back Room D R
1 18" Floor Stand( mic) N/ A N/ A Back Room D R
4 Choir Mics
AudioTechnica
N/A Back Room C R
Uni- point AT853A
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 674 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center Technical & Stage Inventory Stage& Technical Serial Number Equipment Retain
Model Number Condition Replacement Value
Equipment If Known Location Discard
1: 136i<Py(t0174010f.r.:s. 7, -,,-:-,:-:::''' ..::-' 41.-';'1'''''''. --':',.' 1;4;: i-i4P%-"ZT--,:-.1''-::-, t ;: 1,-, 6.1, Y,.,::-.:',' 7-,!.:i.:,,,, i;:,-' f':::;',,,,,,;-•:';', 4-:::1, : qr,-..:,-. 2,•4:4'.';:---te''':-. 1?.,5';, ki .',_,. ,..,,::.''''',-..!..'.:,-.', F-;:l.

N/A-.;',;. v-.4'.:fii.te•:-. 1 r'.... k7.4i•-:i2-..-:-.,. 1..:N/A:-.,:,-„,',:.,::-. a il.ii-i!"Under Stairs' i.. tii'ii-ii-',13i,i`i-iiiiir.--i- r;idaRtiViS T1. WIV4.0',','-'-: 7,:',,,t:',7:
1c5: PrtiprktciptObo... BO§ bidorfer:;,, Stag'e ::,...

74.1.-- f-''
A:':,.',
1'.:7;-:

R-' 2'30;'000
Stage Dimmer System ETC Sensor Dimmer Room A R 115, 000 Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair
Packet Pg. 675 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center General Inventory Serial Number Equipment Retain Replacement
Total
Item Qty Model Number Replacement
If Known Location
Condition Discard Value
Amount
s
Fire Cabinet 1 Grainger Paint Rm By 4' t $ 980 ea 980 00 ; Storage Cabinet 2 Grainger Paint Rm C 313 ea 626.00
Black`Cabinet 1 4 Paint Rm x x B : ,; ' $ 25sea 25 00 '- Caution Placards ,'. 5-. ; -.. Paint Rm A`. 25 ea '.. 7,i.,125:-00,' Cable Covers 21 Checker Paint Rm C 115 ea $ 2, 415. 00

12. Ladder ,'._-",,.. 1:,- Werner Grainger Paint Rm : B- 492•ea 492 00 8' Ladder 1 Werner Grainger Paint Rm B 175 ea 175. 00
40' Ladder 1 Werner Grainger Stage B 1050 ea $ 1, 050.00 Small 16" Stairs 2 sets
Manufactured
Stage B 20 ea 20. 00
in- house
Wheelchair Phone Rm C 350 ea 350. 00
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair Packet Pg. 676 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center General Inventory Serial Number Equipment Retain/ Replacement
Total
Item Qty Model Number
If Known Location
Condition Discard Value
Replacement
Amount
4 z' 8 Riser.Platforms ' 20 Uersalite Stage t } B 635 e'a $ 12 700 00 15" Legs 120 Versalite Stage A 15 ea $ 1, 800. 00
7-. L-egs If 120 Uersalite Stage A 12 ea r $ 1 440 00
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Riser Cart 2 Stage B 575 ea $ 1, 150. 00
Scaffold 1 Aluminum 3 tier Stage 1850 ea $ 1, 850. 00
Condition Legend A= Like New B= Minor wear& Tear C= Scratches may have some parts missing still functional D= Parts Or Needs Repair Packet Pg. 677 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request Exhibit F - Redding Convention Center General Inventory Serial Number Equipment Retain! Replacement
Total
Item Qty Model Number
If Known Location
Condition Discard , value
Replacement
Amount
Freezer- Upright, 3
1 TRUE Kitchen A 5, 000 $ 5, 000.00
door

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Serving Carts 2 Titan Kitchen C 215 ea $ 430.00
Dish C- iis-', tciidn 661 ea 00. 7.,t.„„„'"i,,-' 7.-„.}.. 3'.i.',.',:-....'; ',.;„",,, i,.:•;,f,7"iTitan/ A,:i474-1„#,.. 7-,•27,..q,-,,,,zg,li-lq,,n•:$,-, ,.-•: „. e, 4.. ,,,..,- i.. J„,..„ Gas Ovens 6 Vulcan Kitchen D D $ 250 ea $ 1, 500.00
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Block Tables
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s/ s racks and plate 4 Alto Sham Kitchen C 3260 ea $ 13, 040.00 covers
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EXHIBIT G

MANDATORY OPERATIONS CRITERIA

1. All rental agreements for the Premises, or any portion thereof or the use of the equipment provided by City to Tenant shall be in writing and shall be executed by a representative of Tenant who has been provided lawful authority to legally bind Tenant.

2. Tenant shall require that all rental agreements of the Premises for events include the following language:

Lessee hereby waives any claim against and shall indemnify and hold harmless the City of Redding, its officers, employees and representatives from any damage to the premises, fittings, equipment, building and furnishings of the Premises, inclusive of the Civic Auditorium and all ancillary improvements and landscaping, during the time the premises are used, occupied or under the control of the Lessee and against any claims of any and all persons for injury to persons or damage to property occasioned by or in connection with the use of the Premises, or any part thereof, or any equipment by Lessee its employees or agents.

3. Tenant may prescribe the forms of tickets, accounts, records and reports to be used in accounting for gross receipts in connection with percentage rentals. If civic organizations or other lessees elect to sell their own tickets, they shall do so at the discretion of the Tenant; and the Tenant shall have the right at any and all times to make an investigation or inspection of any or all of lessee' s tickets, accounts, records and reports for the purpose of verifying the amount of the receipts on which the percentage is based.

4. Tenant shall not permit a lessee to injure, mar, or in any way deface the Premises or any equipment therein, and shall not cause or permit anything to be done whereby it is in any manner marred or defaced, nor shall lessee be permitted to fasten wires, nails, hooks, tacks, pins or screws about or in any part of the Premises, nor shall lessee be permitted to make or allow to be made any alterations of any kind therein.

5. Tenant shall require all lessees by contract to pay to Tenant, on demand, the sum Tenant reasonably determines to be necessary to restore the Premises or equipment to its condition prior to damage in the event such Premises or equipment is damaged, marred or defaced by the act, default or negligence of the lessee or the lessee' s agent, employee or employees, patrons, guests or any person admitted to the auditorium by the lessee. Tenant shall require in said contract that such damages may be withheld, or set- off, from receipts due to lessee or that such damages may be recouped from a deposit made by lessee.

6. Tenant shall require that each lessee take the Premises in the condition he finds it, and in the event any lessee finds it necessary to remove or to change the location of any stage rigging or equipment, the change shall be made at his expense and lessee shall agree to change all of the stage rigging or other equipment back to the condition in which it was found. No lessee shall Packet Pg. 679 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request erect, remove or change any stand, platform, railing, booth, partition, enclosure or other structure in the Civic Auditorium or make any utility connection until and unless a plan or description thereof is filed with, and approved in writing by the Tenant.

7. Tenant shall require that each lessee use the Premises and every part thereof only in keeping with the design and purpose of the Premises. Tenant shall require that lessee will keep the Premises in good order at his own expense and the lessee will suffer no waste to be made of the building fixtures or furnishings. No portion of the sidewalks, promenade, entries, corridors, lobby or aisles shall be obstructed by lessee.

8. Tenant shall reserve the right to remove all equipment, merchandise, property, debris, etc., of any lessee immediately after the expiration of the lease, at the expense of the lessee, or, in the alternative, to charge rental after the expiration of such lease. When the time for which rent has been paid expires, all heat, electricity and water may be shut off by Tenant unless arrangements have been made in advance by lessee for the payment of additional rent to be paid by lessee, prorated on an hourly basis.

9. Tenant may permit any lessee to sell items, which are specialty items peculiar only to the performance, such as novelties, librettos, programs, flowers, etc. Tenant may contract to take a percentage of gross receipts if such permission is provided to lessee.

10. Tenant shall require that no lessee may assign any lease of the Premises, or any portion thereof, or any rights under the lease, without prior written consent of the Tenant.

11. Tenant shall retain the right to enter the Civic Auditorium, or any part thereof, at all times during the period covered by any lease contract. The lessee shall not be permitted to place any additional locks on doors.

12. Tenant shall require that persons employed by lessee to handle stage sets, sceneries, rigging properties, lighting, sound equipment or to perform other work of specialized or technical nature, including ushering and other duties, be experienced and competent and in every respect qualified to perform their duties without jeopardy or hazard to life or property or equipment and the qualifications of all such persons shall be subject to approval, rejection or dismissal by the Tenant.

13. Tenant shall require that each lessee of the Premises, or any part thereof, shall employ at his expense sufficient police protection for any event as in the Tenant's reasonable discretion is required to protect life and property, and to insure proper respectable use of the Premises.

14. Tenant is authorized to forbid entrance to or to reject from the auditorium any objectionable or disorderly person. Tenant shall require lessees to waive any claim for damages against the City of Redding, or its representatives, for any such action. No part of the auditorium shall be used by or rented to any person or organization advocating the overthrow of the government of the United States or of the State of California by force or violence nor for any meeting likely to cause or contribute to riot, breaches of the peace, destruction of life or property, or for use contrary to the public health, safety, or good order. Tenant may investigate and inquire into the Packet Pg. 680 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request general reputation and conduct of any individual or organization desirous of using the Premises or any part thereof, and if upon investigation, Tenant is satisfied that the individual or organization is likely to cause or contribute to riot, breaches of the peace or destruction of life, or property or that contemplated use would be contrary to the public health, safety, or good order, Tenant may refuse to rent or permit the use of the Premises or any part thereof to the individual or organization. This Paragraph shall not be construed by Tenant to excuse performance and compliance with any term or condition in the Lease Agreement requiring non-discrimination.

15. Every use of the auditorium or any part thereof or any equipment therein shall be in accordance, and shall comply, with the provisions of the Redding Municipal Code, the statutes of the State of California and the United States of America and the Tenant may discontinue any use of the Premises, or any part thereof, for failure to comply with or any violation or threatened violation of any of the provisions of this chapter until such time as satisfactory compliance is assured.

16. Tenant shall make no modifications to the exterior or interior of the Civic Auditorium without prior approval from City.

17. For purposes of Tenant subleasing the Premises to the Church for the Church' s ongoing regular use of the Premises for its educational activities, Tenant shall limit Church' s parking to the South parking lot( s) and enforce the same with permitting and fines.

18. Tenant shall in no way state or otherwise imply that the City of Redding in any way endorses or sponsors the religious activities of any of Tenant' s sublessees or authorized users. Tenant shall not permit any religious symbols to be displayed on the exterior of any Improvement on the Premises. Tenant shall require that any religious symbol displayed on the interior of any Improvement be removed from public view when the Premises are sublet or otherwise opened to the public for a Special Event or for an event not sponsored by the Church or another religious organization.

Packet Pg. 681 Attachment: (C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement (9.6(b)--Approve Terms for Civic Auditorium Request

CITY OF REDDING

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

Fiscal Impact
In 2014, the City of Redding (City) received net proceeds of approximately $600,000 from the sale of property to The McConnell Foundation for the purpose of constructing the Sheraton Hotel. By City Council (Council) direction, the funds were deposited into a special account to be used for capital investment and deferred maintenance at the Civic Auditorium. Additionally, some of the proceeds from the Civic Auditorium lease payments have been distributed into this account. Between these sources, minus some previous expenditures, there is approximately $675,000 available. Therefore, should the Council wish to provide those funds to Advance Redding there would be no additional impact to the General Fund. However, future Civic Auditorium maintenance projects will have less available funding, and staff will be required to seek alternate sources.

Alternative Action
The Council could choose to not provide any direction at this time.

MEETING DATE: August 19, 2025
ITEM NO. 9.6(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(d)--Consider financial assistance options for Advance Redding regarding the Civic Auditorium located at 700 Auditorium Drive.

Travis Menne, Director of
Community Services
Packet Pg. 682 Attachment: Previous Staff Report - August 19, 2025, item 9.6(d) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Report to Redding City Council August 13, 2025
Re: 9.6(d)‐‐Consider Financial Assistance Options for the Civic Auditorium and Advance Redding Page 2

Background/Analysis
At the August 4, 2025, Council meeting, Advance Redding presented the “State of the Civic” to the Council. During that presentation, General Manager Julie Dyar, had two requests from the Council: (1) to use the $675,000 to assist Advance Redding with current expenses; and (2) work with Advance Redding to re-structure the existing agreement to ensure future success.

As background, the Amended and Restated Civic Auditorium Lease Agreement (C-5682) between the City and Advance Redding, Inc. establishes the terms for leasing the Redding Civic Auditorium from January 1, 2022, to December 31, 2031. Advance Redding is responsible for managing the venue, ensuring a minimum of 60 event days per year, measured on a three-year rolling average, and accommodating specific community events like Kool April Nites and the July 4th Freedom Festival. The lease allows limited rent-free use of the facility by the City for municipal purposes and natural disaster response.

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

Council Priority/City Manager Goals
 Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
 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
Reso 2014-025
C-5682 - Lease Agreement - 2021 - Advance Redding
C-5682_Lease Agreement_1st Amendment Convention Center_Advance Redding Packet Pg. 683 Attachment: Previous Staff Report - August 19, 2025, item 9.6(d) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Should Council desire to provide operational funding for Advance Redding, staff recommends authorizing and approving the following actions relative to Advance Redding and the operations of the Civic Auditorium:
(1) Provide staff with direction relative to the funding amount, timeline and duration, if any, for short-term operations funding to Advance Redding for the Civic Auditorium; (2) Authorize the Mayor to execute a Grant Agreement for short-term operations of the Civic Auditorium;
(3) Authorize the City Manager, or designee, to administratively appropriate funding from the source, if any, selected by Council for use in the grant; (4) Authorize the Mayor to execute the Second Lease Amendment with Advance Redding (C-5682), providing rent relief and adding a 60-day no-cause termination clause; and (5) Consider long-term options and provide staff with direction, if any.

Fiscal Impact
At the January 20, 2026, meeting, Advance Redding requested ongoing support for the operations of the Civic Auditorium in the amount of $116,000, monthly. Should City Council (Council) choose to provide short-term funding to Advance Redding, each option will have varying impacts based on the funding source and amount provided. The Council could choose to use, at their discretion, the following one-time funding sources:

General Fund Reserves – The General Fund reserves are not expected to meet Council reserve policy at fiscal year-end due to lower starting cash position than 10-year plan forecast and lower tax revenues.

MEETING DATE: February 3, 2026
ITEM NO. 9.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(a)--Consider providing direction to staff regarding funding for Advance Redding's operations of the Civic Auditorium located at 700 Auditorium Drive.

Travis Menne, Director of
Community Services/Airports
Packet Pg. 684 Attachment: Previous Staff Report - February 3, 2026, item 9.6(a) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Report to Redding City Council January 29, 2026
Re: 9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic Auditorium Page 2
Redding Rancheria Agreement – The City General Fund received approximately $3.2 Million from Redding Rancheria for their Health Campus agreement in November 2025. These monies are housed in the General Fund, but have not been budgetarily appropriated for any purpose. The Council could choose to utilize these for a variety of purposes including this, but may also choose to use them in the future to increase General Fund reserves to meet Council policy requirements. These funds are not part of the 10-year plan.

Stillwater & General Fund Property Sales – Recent property sales have brought the Stillwater Property sales to nearly $4 million, all of which are available for General Fund uses. The Council has previously decided to save this money for future needs at Stillwater. Stillwater, like many General Fund items, has an unmet need that will require future Council consideration and action.

These funds are not part of the 10-year plan.

These options present a variety of strengths and weaknesses for the Council to consider but ultimately these are one-time sources of money, which could limit or hinder future availability of funds for other uses by the Council.

Executing the Lease Amendment will result in a continued $5,000 per month impact on the Civic Auditorium Fund (where rent revenues live) to the total of $30,000.

Alternative Action
Other options include, but are not limited to:
• Authorize staff to negotiate with Advance Redding for a new lease that provides financial assistance for operations of the facility;
• Negotiate with Advance Redding for a temporary grant agreement, but issue a Request for Proposals for alternatives. This alternative may have additional budget impacts from consulting costs;
• Do not provide staff with direction, this alternative will not provide financial relief to Advance Redding and may result in the closure of the Civic Auditorium; • Do not authorize short-term financial assistance and issue a Request for Proposals for alternatives. This alternative will not provide financial relief to Advance Redding and may result in the closure of the Civic Auditorium;
• Direct staff to develop a plan for the City to reabsorb operations of the facility; and • Provide staff with alternate direction.

Background/Analysis
At its meeting on January 20, 2026, the Council directed staff to return at the February 3, 2026, Council meeting with short-term funding options for consideration. Furthermore, the Council authorized six months of additional rent relief. To enable this action, staff has brought the Second Lease Amendment for Council’s consideration. Additionally, because the Lease does not currently have a termination clause, staff has worked with Advance Redding to include an agreeable 60-day “no cause” termination clause. The change means that either party can terminate the agreement with 60 days’ notice. Currently, neither party may terminate the agreement without a breach of contract. Should short term funding be provided, Advance Redding would be required to return any and all remaining funds to the City prior to termination.

Packet Pg. 685 Attachment: Previous Staff Report - February 3, 2026, item 9.6(a) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Report to Redding City Council January 29, 2026
Re: 9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic Auditorium Page 3
Should the Council not wish to include a termination clause, staff can remove that language from the draft contract prior to execution.

Short-term funding options for Advance Redding’s operation of the Civic Auditorium can include a combination of a grant and utility relief (where the City pays utility costs directly) to absorption of existing contracts, purchases or other obligations. The attached contract contemplates only a direct financial contribution. If another model is desired, staff can return with additional details and agreements.

However, providing short-term funding does not solve Advance Redding’s long-term operational and budget issues. Should Council desire to provide long-term support, a funding agreement can be generated that includes cash, utility relief and, though more complex, Council could also consider providing staff support for Civic Auditorium operations, including marketing and building maintenance support to lower costs for Advance Redding. Furthermore, Council could consider utilizing Transient Occupancy Tax (TOT) in future budget cycles, money which has historically been tied to the operations of the facility. Other options include the General Fund or negotiating for Tourism Marketing Business Improvement District funds. Council could also consider issuing a Request for Proposals (RFP) for an alternative operator prior to making a long-term funding decision.

At its August 4, 2025, Council meeting, Advance Redding presented the “State of the Civic.” During that presentation, General Manager, Julie Dyar, had two requests for the Council: (1) to use $675,000 sourced from the proceeds of the property sale for the Sheraton Hotel in 2014 to assist Advance Redding with expenses; and (2) work with the City to re-structure the existing agreement to ensure future success. On August 19, 2025, Council directed staff to develop a grant agreement for Advance Redding to help support operations of the Civic Auditorium with a total value of $675,445,27 and also directed staff to waive rent payments until January 2, 2026.

At that time, Advance Redding estimated the funds would support operations sometime into January 2026, at which point the facility would risk closure.

Later, on September 2, 2025, Council authorized the Mayor to execute the Grant Agreement and Lease Amendment documents - both agreements were executed on September 9, 2025. On September 16, 2025, Council directed staff to return with a report for discussion and consideration of options, if any, at its next meeting, 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. Staff returned on October 7, 2025 and Council did not elect to make changes to the agreement at that time.

Packet Pg. 686 Attachment: Previous Staff Report - February 3, 2026, item 9.6(a) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals) Report to Redding City Council January 29, 2026
Re: 9.6(a)--Provide Direction on Funding Advance Redding's Operations of the Civic Auditorium Page 4
The rent structure was variable to account for a major subtenant’s presence. In 2022, rent was $10,000 per month and in 2023, increased to approximately $23,356 per month, with cost-ofliving adjustments in 2023 and 2024. However, in December 2023, when Advance Redding received written notice that its subtenant, Bethel Church, intended to terminate its sublease, the rent dropped to $5,000 per month for the remainder of the lease. The rent reduction acknowledged the financial impact of losing a major source of stable income that supported the tenant’s operational viability. At their September 2, 2025 meeting, the Council authorized a lease amendment which waived rent payments until January 2, 2026. At their January 20, 2026 meeting the Council authorized a further six months of rent payment relief, expiring June 30, 2026.

The City spends approximately $200,000 annually on exterior maintenance and major mechanical repair.

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

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• 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
^2026_Advance Redding Grant Agreement
^C-5682 Second Amendment to the Amended and Restated Lease Agreement C-10981 - Grant Agreement - 2025 - Advance Redding
Reso. 2025-074 - Authorizing Financial Support for Advanced Reddings Operations of Redding Civic
C-5682 - First Amendment - 2025 - Advance Redding
(C-5682) 2021 Amended and Restated Civic Auditorium Lease Agreement Previous Staff Report - August 19, 2025, item 9.6(d)
Previous Staff Report - September 2, 2025, item 9.6(b)
Previous Staff Report - October 7, 2025, item 9.6 (a)
Previous Staff Report - January 20, 2026, item 9.6(c)
Packet Pg. 687 Attachment: Previous Staff Report - February 3, 2026, item 9.6(a) (9.6(b)--Approve Terms for Civic Auditorium Request for Proposals)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to the Redding Police Department Military Equipment:
(1) Accept the Redding Police Department Military Equipment Report; (2) Introduce Uncodified Ordinance adopting and approving a policy to provide guidelines for the approval, acquisition and reporting requirements for military equipment for first reading by title only and waive the full reading;
(3) Authorize the City Attorney to prepare a summary ordinance, and the City Clerk to publish the same in accordance with law; and
(4) Authorize the Redding Police Department to purchase one Skydio R10 Unmanned Aerial Vehicle at a cost of approximately $10,000.

Fiscal Impact
There is no new fiscal impact. Military Equipment is maintained within the department budget.

For the new equipment being requested, Redding Police Department (RPD) is planning to purchase one Skydio R10 Unmanned Aerial Vehicle (UAV) and related accessories at a cost of approximately $10,000. RPD is planning to use grant funds for this purchase.

Alternative Action
The City Council (Council) could decline to approve the RPD Military Equipment Report (Report) and the proposed ordinance, and provide staff with additional direction.

MEETING DATE: May 19, 2026
ITEM NO. 9.9(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.9(c)--Consider the Redding Police Department Military Equipment Report; and Uncodified Ordinance to provide guidelines regarding military equipment pursuant to Assembly Bill 481.

Brian Barner, Chief of Police
Packet Pg. 688
Report to Redding City Council May 14, 2026
Re: 9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment Page 2
Background/Analysis
California Assembly Bill 481 (AB 481), codified at Government Code sections 7070 through 7075, requires RPD to give an annual update on the funding, acquisition and use of military equipment. The first initial report was submitted to City Council on April 19, 2022, for an adoption of uncodified Ordinance No. 2647 on May 3, 2022.

A military equipment inventory report and an uncodified ordinance have been presented and approved annually since 2022.

The term “military equipment,” as used in AB 481, does not necessarily indicate equipment used by the military. Items deemed to be “military equipment” include, but are not limited to unmanned aerial or ground vehicles, armored vehicles, command and control vehicles, breaching equipment, kinetic energy weapons and munitions, patrol rifles, tear gas/munitions, and noise flash diversionary devices. The list of items considered “military equipment” by AB 481 are used by most law enforcement agencies across the country as best practice to enhance citizen and officer safety.

Attached is the annual RPD Military Equipment Report, which includes an inventory of the military equipment maintained by RPD. The use of military equipment identified on the inventory list is vital to RPD’s mission and will continue to be strictly regulated through internal process and oversight.

RPD Policy 707 and AB 481 information has been posted on RPD’s website since March 2, 2022, for public viewing. The website includes a reporting link for concerns. There have been no citizen complaints or inquires made in the past four years regarding the use of military equipment.

In addition, RPD held a Community Meeting on Wednesday May 6, 2026, to discuss AB 481 and the equipment it maintains.

Because AB 481 requires approval from an agency’s legislative body, RPD is requesting approval to purchase one Skydio R10 Unmanned Aerial Vehicle (UAV).

Law Enforcement officers may be called to incidents where there is a substantial risk of entering a building. These can include barricaded subjects, wanted felons attempting to evade capture, domestic violence incidents, and hostage situations. The Skydio R10 UAV platform is specifically designed for indoor public safety use and allows officers to use the device to enter a building and gather intelligence remotely. The R10 has on-board high intensity lighting and built in two-way communication capabilities allowing officers to view, listen, and speak from a safe position. The R10 is also able to land inside a building and stream video back to officers for up to three hours. This capability allows officers to have real-time on-site intelligence in critical incidents. The R10 would be an addition to RPD’s current UAV fleet.

All RPD UAV operations are governed by department policy, state law, and federal law, including applicable FAA regulations. All UAV deployments require supervisor approval and are tracked internally by the department.

Packet Pg. 689
Report to Redding City Council May 14, 2026
Re: 9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment Page 3
Environmental Review
This item 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”. • 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
Uncodified Ordinance
2026 AB 481 Inventory Report
Policy 707 - Military Equipment
Packet Pg. 690
2 ORDINANCE NO.

AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF REDDING ADOPTING A POLICY TO PROVIDE

GUIDELINES FOR THE APPROVAL, ACQUISITION, AND

REPORTING REQUIREMENTS FOR MILITARY EQUIPMENT
WHEREAS, on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481, which relates to the use of military equipment by state and local law enforcement agencies; and
WHEREAS, Assembly Bill 481, codified at Government Code sections 7070 through 7075, inclusive, and as applied to cities, requires local law enforcement agencies to obtain approval of a military equipment use policy prior to taking any action which supports the acquisition and use of military equipment; and
WHEREAS, Government Code section 7071 requires approval of a military equipment use policy by ordinance at a regular meeting of the City Council; and WHEREAS, Government Code section 7071 further provides that the military equipment use policy must be made publicly available on the law enforcement agency’s internet website for no less than thirty (30) calendar days prior to adoption of the same by ordinance; and
WHEREAS, subdivision (e) of Government Code section 7071 further requires that the City Council review for renewal any such ordinance at least annually with consideration of the annual military equipment report submitted pursuant to Government Code section 7072; and
WHEREAS, Redding Police Department Policy 707 was published on the Redding Police Department’s public website on March 2, 2022 and was provided to the City Council on the same day; and
WHEREAS, the City Council adopted Ordinance No. 2647 on May 3, 2022, whereby Redding Policy Department Policy was approved, adopted and found to meet all requirements under the law; and
WHEREAS, Redding Police Department Policy 707 was revised to reflect current legislative changes, published on the Redding Police Department’s public website on May 7, 2025, and provided to City Council on May 20, 2025; and WHEREAS, the current proposed military equipment use policy for the Redding Police Department 707 is attached and incorporated herein;

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

Section 1. Determinations and Orders.

1. Redding Police Department Policy 707 meets the requirements of subdivision (d) Packet Pg. 691 Attachment: Uncodified Ordinance (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 3 of Government Code section 7071 because substantial evidence in the record establishes that:

A. Policy 707 is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; and B. Policy 707 will safeguard the public’s welfare, safety, civil rights and civil liberties; and
C. The equipment set forth in Policy 707 is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civil safety.

2. The current version of Redding Police Department Policy 707, attached hereto and incorporated by reference, is approved and adopted.

3. The Chief of Police shall produce the annual military equipment report required by Government Code section 7072, publish the same on the Redding Police Department internet website, and provide the notice and public engagement required by subdivision (b) of Government Code 7072.

4. The Chief of Police shall, after undertaking all actions set forth in Section 3, herein, agendize consideration of the annual military equipment report for a regular meeting of the City Council.

5. The Chief of Police shall, no later than ten months (10) months after the adoption of this ordinance, and every subsequent renewal of the same, cause consideration of an ordinance to renew this ordinance for an additional term of one (1) year to be agendized for first reading.

Section 2. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any person or circumstance. The City Council of the City of Redding hereby declares that it would have adopted each section, subsection subdivision paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections subdivisions paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Section 3. The City of Redding finds that this Ordinance is not a “project” according to the definition set forth in the California Environmental Quality Act (“CEQA”), and, pursuant to CEQA Guidelines sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment), the adoption of this ordinance is therefore not subject to the provisions requiring environmental review.

Packet Pg. 692 Attachment: Uncodified Ordinance (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 4 I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City of Redding at a regular meeting on the 19th day of May, 2026, and was duly read and adopted at a regular meeting on the __________ day of __________, 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
___________________________________
MIKE LITTAU, Mayor
ATTEST:
_____________________________
SHARLENE TIPTON, City Clerk
APPROVED AS TO FORM:
___________________________________
BENJAMIN L. STOCK,
Interim City Attorney
DATE ATTESTED ________ , 2026
Packet Pg. 693 Attachment: Uncodified Ordinance (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 777 CYPRESS AVE, REDDING CA. 96001 | WWW.reddingpolice.org

REDDING POLICE DEPARTMENT
ANNUAL AB481

MILITARY EQUIPMENT INVENTORY
REPORT
Dates Revised
April 28, 2026
May 2, 2025
May 8, 2024
May 30, 2023
April 6, 2022

Packet Pg. 694 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 2 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026)

TABLE OF CONTENTS

INTRODUCTION
SUMMARY OF DEPARTMENT OWNED MILITARY EQUIPMENT:

SECTION 1 – UNMANNED, REMOTELY PILOTED, POWERED AERIAL OR GROUND VEHICLES SECTION 3 – HIGH MOBILITY MULTIPURPOSE WHEELED VEHICLES (HMMWV), TWO-AND-ONEHALF-TON TRUCKS, FIVE-TON TRUCKS, OR WHEELED VEHICLES THAT HAVE A BREACHING OR ENTRY APPARATUS ATTACHED.

SECTION 5 – COMMAND AND CONTROL VEHICLES THAT ARE EITHER BUILT OR MODIFIED TO FACILITATE THE OPERATIONAL CONTROL AND DIRECTION OF PUBLIC SAFETY UNITS.

SECTION 7 – BATTERING RAMS, SLUGS, AND BREACHING APPARATUSES THAT ARE EXPLOSIVE IN NATURE.

SECTION 8 & 9 – FIREARMS AND AMMUNITION OF .50 CALIBER OR GREATER.

SECTION 10 – SPECIALIZED FIREARMS AND AMMUNITION OF LESS THAN .50 CALIBER.

SECTION 12 – “FLASHBANG” GRENADES AND EXPLOSIVE BREACHING TOOLS, “TEAR GAS,” AND “PEPPER BALLS.”
SECTION 14 – 40MM PROJECTIVE LAUNCHERS, “BEAN BAG,” RUBBER BULLET, AND SPECIALTY IMPACT MUNITIONS (SIM) WEAPONS.

Packet Pg. 695 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 3 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026)

UNMANNED AERIAL SYSTEMS (UAS)
CA GOVERNMENT CODE § 7070 (c)(1): Unmanned, remotely piloted, powered aerial or ground vehicles.

EQUIPMENT CAPABILITIES: Remotely piloted aerial vehicle capable of providing live and recorded video images captured from aerial positions, including images enhanced by Forward Looking Infrared (FLIR), thermal, and optical zoom lenses.

FISCAL IMPACTS:

The price of the UAS is based upon each specific model. The most expensive UAS is the Matrice 300 with a cost of approximately $35,000 for all attachments, cameras, etc.

The allotted annual Redding Police Department UAS budget is $22,500. In year 2025-26, RPD did not purchase any new UAV devices. Approximately $6,300 was spent on equipment maintenance and upkeep.

In the coming year, RPD plans to purchase 1 (one) Skydio R10 UAS and related accessories at a cost of $9,946.

LEGAL & PROCEDURAL RULES GOVERNING USE: The use of UAS is in accordance with Redding Police Department Policy 606 and Federal Aviation Administration (FAA) Regulations.

PURPOSE & AUTHORIZED USES: Unmanned aerial systems may be utilized to enhance the Redding Police Department’s mission of protecting lives and property when other means and resources are not available or are less effective. Any use of a UAS will be in strict accordance with constitutional and privacy rights, Federal Aviation Administration (FAA) regulations, and Redding Police policy 606.

TRAINING REQUIRED: UAS will only be operated on deployment by department personnel who possess a valid Remote Pilot Certificate and have received department approved training in operation, applicable laws, policies, and procedures regarding the use of the UAS.

OTHER: UAS consistently improve and advance from year to year. There may be times when equipment becomes available that are imperative for successfully operating the fleet while technology becomes obsolete.

Packet Pg. 696 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 4 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) PRODUCTS IN UAS FLEET & DESCRIPTION: The following make up the UAS fleet for the Redding Police Department. All products are manufactured by DJI and include commercial-grade and civilian models. Commonly used by construction and utility companies for the inspection of buildings, powerlines, windmills and other infrastructure. All UAS are battery powered, remote operated devices. Operators utilize a handheld controller to control UAS and view live feed from UAS-mounted camera. Flight time varies by model, but average approximately 30 minutes per battery, depending on weather and flight conditions. The UAS has also proven to be useful to public safety agencies in firefighting, search and rescue, pre-operational surveillance, and other tactical situations where aerial views enhance the safety and efficiency of law enforcement and fire personnel. The Redding Police Department utilizes the following UAS models:

DJI MATRICE 210
QUANTITY 2 UNITS
LIFESPAN 5+ YEARS
2025-26 COST GENERAL MAINTENANCE
DJI MATRICE 300
QUANTITY 2 UNITS
LIFESPAN 5+ YEARS
2025-26 COST GENERAL MAINTENANCE

DJI MAVIC
QUANTITY 3 UNITS
LIFESPAN 5+ YEARS
2025-26 COST GENERAL MAINTENANCE
DJI PHANTOM 4
QUANTITY 1 UNIT
LIFESPAN 5+ YEARS
2025-26 COST GENERAL MAINTENANCE
Packet Pg. 697 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 5 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026)

DJI SPARK
QUANTITY 1 UNIT
LIFESPAN 5+ YEARS
2025-26 COST GENERAL MAINTENANCE

DJI MAVIC MINI
QUANTITY 2 UNITS
LIFESPAN 5+ YEARS
2025-26 COST GENERAL MAINTENANCE

DJI AVATA
UAS DEPLOYMENT SUMMARY:

REMARKS 86 DEPLOYMENTS IN 2025-26
- 6 INVESTIGATIONS
- 3 TRAFFIC COLLISION INVESTIGATIONS
- 3 SEARCH & ARREST WARRANTS
- 4 CRIME SCENE DOCUMENTATION
- 41 SUSPECT SEARCHES
- 11 SPECIAL EVENTS / DEMOS
- 3 SWAT OPERATIONS
- 5 MISSING PERSON INVESTIGATION
- 6 BURGLARY / ALARM INVESTIGATIONS
- 2 NARCOTICS INVESTIGATIONS
- 2 WATER RESCUE OPERATIONS
QUANTITY 2 UNITS
LIFESPAN 5+ YEARS
2025-26 COST GENERAL MAINTENANCE
Packet Pg. 698 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 6 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) LENCO BEARCAT G2
CA GOVERNMENT CODE § 7070 (c)(3): High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached.

EQUIPMENT CAPABILITIES: The vehicle is equipped with emergency lights/sirens, rotating roof hatch, running boards, protection against chemical agents, back-up camera, battering ram attachment, and spot/flood lights. The vehicle is armored with a 0.5 – 1.5” thick steel and ballistic windows rated to stop a .50 caliber bullet.

FISCAL IMPACTS: The cost of the BearCat G2 was approximately $309,035 which was purchased in 2019 by the Hilltop Business Group for the City of Redding. The cost to maintain the Bearcat is approximately $3,000 annually in the form of general maintenance and equipment.

LEGAL & PROCEDURAL RULES GOVERNING USE: The use of the Lenco BearCat G2 is governed by Redding Police Department Policy 706.

PURPOSE & AUTHORIZED USES: The BearCat is primarily used for Special Weapons and Tactics (SWAT) Team incidents, safe transport of SWAT personnel to and from critical incidents, high risk warrant service operations, dangerous high-risk tactical operations, high risk rescue operations, training, community engagement efforts and any other applications deemed appropriate and approved by the SWAT Commander, Division Commander or Chief of Police.

TRAINING REQUIRED: Officers are to be trained in the operation of the BearCat prior to use.

Training requirements will be set by the SWAT Commander and will include knowledge of the listed policy, rules of the road and basic knowledge of electronic/mechanical functions on the vehicle. The training will also include a driving exercise. SWAT personnel will receive advanced training and are expected to maintain a higher level of operational knowledge and expertise.

Only Redding Police Department personnel who have completed training and possess a valid California Driver’s License will be authorized to drive/operate the BearCat, unless a delayed deployment of the BearCat would result in serious bodily injury or death.

The SWAT Commander, or his/her designee, is responsible for training officers on proper use, driving techniques and ensuring the vehicle is properly serviced and maintained.

MANUFACTURER PRODUCT DESCRIPTION: The Lenco BearCat is the standard tactical armored vehicle for special operations units within the US Law Enforcement community. Since the early 2000s, agencies such as LAPD, LASD SEB, NYPD ESU, Boston PD and hundreds of Federal, State and Local Law Enforcement agencies have made the BearCat part of their standard operating procedure. The G2 has excellent on-road driving characteristics and maneuverability in tight urban settings. The large floor plan seats 10 – 12 fully equipped officers.

Packet Pg. 699 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 7 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) OTHER: The vehicle is designed to meet the tactical needs of law enforcement agencies tasked with responding to acts of violence and/or terrorism.

QUANTITY 1
LIFESPAN 15+ YEARS
2025-26 COST NO COST
REMARKS 17 DEPLOYMENTS IN 2025-26
- 12 PATROL RESPONSES
- 3 PUBLIC EVENTS
- 2 SWAT OPERATIONS

Packet Pg. 700 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 8 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026)

MOBILE COMMAND VEHICLE (MCV)
CA GOVERNMENT CODE § 7070 (c)(5): Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.

EQUIPMENT CAPABILITIES: The mobile command vehicle provides mobile, remote access to radio, internet planning and operational resources to assist with the command and control of major incidents and other planned operations. The vehicle also has the capability to dispatch officers and firefighters, as well as receive emergency calls.

FISCAL IMPACTS: The initial costs of the MCV was approximately $560,040 which was purchased in 2021 with funding from the Redding Electric Utility Wildfire Mitigation Plan. The 2025-26 cost to maintain the mobile command vehicle is approximately $7,500 in the form of general maintenance, equipment and storage.

LEGAL & PROCEDURAL RULES GOVERNING USE: Redding Police Department allows the use of the MCV with the approval of the Division Commander. A Class C license is required to drive the vehicle.

PURPOSE & AUTHORIZED USES: The MCV can be deployed for any fire, police, and/or utility incidents which it would be deemed beneficial to do so.

TRAINING REQUIRED: A Class C license is required to drive the vehicle. The Redding Police Department supervisor assigned to the MCV will ensure operators are trained in the operation and functions of the MCV. Trained personnel will operate the MCV and will be assigned to the vehicle during operations to facilitate its operation.

MANUFACTURER PRODUCT DESCRIPTION: The City of Redding Mobile Command Vehicle was built in conjunction with the Redding Fire Department, Redding Police Department, and Redding Electric Utility as a unified command vehicle but can also alternate between fire, police, and utility for department specific missions. The vehicle was custom built by LDV Manufacturing in Wisconsin in 2021.

Packet Pg. 701 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 9 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) OTHER: The MCV is not a tactical vehicle but rather a multi-purpose vehicle to help facilitate command and control during field incidents in the City of Redding. The vehicle does not have any armor nor is it deployed in such a manner as to be used in such a way. The vehicle is to be deployed at the periphery of a tactical incident if one such arises.

QUANTITY 1
LIFESPAN 15+ YEARS
2025-26 COST $12,000 IN STORAGE, MAINTENANCE AND

SERVICES
REMARKS 6 DEPLOYMENTS IN 2025-26
- 3 PUBLIC EVENTS
- 1 EMERGENCY INCIDENT (FLOODING)
- 2 TRAINING EVENTS
Packet Pg. 702 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 10 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026)

ENERGETIC EXPLOSIVE BREACHING
CA GOVERNMENT CODE § 7070 (c)(7): Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.

EQUIPMENT CAPABILITIES: Energetic breaching is used to gain rapid access to a room or structure when an emergent law enforcement need exists. All efforts are made to minimize the amount of energetics applied to a target, while still achieving a positive breach. Energetic breaching materials are used to make breaching charges of various shapes and strength which are specifically designed for the target. The materials release gasses, heat, and light when initiated.

The pressure from the gasses released presses against mediums and/or the target to cause the structure of the target to fail for a successful breach. Breaching charges are specially designed to cause structural failure of the desired target. Various types, configurations, and energetic weights are maintained for use, as needed.

FISCAL IMPACTS: Initial startup was funded by department SWAT budget – estimated $2,500.

Future fiscal impact: 50 grain detonation cord, blasting caps and percussion primers – approximately $2,000 to $3000 per year. In 2025-26 there was no cost to the explosive breaching program.

LEGAL & PROCEDURAL RULES GOVERNING USE: Explosive breaching is commanded by the SWAT Commander and procedures are outlined under Redding Police Department Policy 404.

Explosive breaching may only occur after authorization by the SWAT Commander in the field, and during training exercises.

PURPOSE & AUTHORIZED USES:It is the standard operating procedure of the Redding Police Department Special Weapon and Tactics (SWAT) Team to utilize a SWAT team member or member of the Shasta County Bomb Team who has attended the necessary training required to provide the option of explosive breaching. Explosive breaching is a SWAT Team tactical option and can be employed when a rapid entry is critical to the success of the SWAT mission.

Explosive breaching should only be considered after other reasonable methods or procedures have been exhausted or deemed inappropriate. Explosive breaching can provide a sufficient tactical advantage which should also be considered to justify its use. An explosive breach should be viewed as a breaching tool to be used in dangerous situations with minimal risk to officers and occupants of target structures. Explosive breaching techniques may not be appropriate in all breaching situations. An explosive breach should not be employed in the following circumstances:
a. The construction of walls, doors or the building is not known. b. The location of the occupants/victims is not known.
c. There is a known presence of unstable chemicals or other incendiary materials.

TRAINING REQUIRED: Explosive breaching personnel shall train with SWAT at minimum two times annually and often enough to be proficient in the practice of explosive breaching. All explosive breaching personnel shall attend a certified breaching school.

Packet Pg. 703 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 11 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) MANUFACTURER PRODUCT DESCRIPTION: The detonating cord is a thin, flexible plastic tube usually filled with pentaerythritol tetranitrate (PETN, pentrite). With the PETN exploding at a rate of approximately 6400 m/s, any common length of detonation cord appears to explode instantaneously. It is a high-speed fuse which explodes, rather than burns, and is suitable for detonating high explosives.

A blasting cap is a small sensitive primary explosive device generally used to detonate a larger, more powerful and less sensitive secondary explosive such as TNT, dynamite, or plastic explosive.

Blasting caps come in a variety of types, including non-electric caps, electric caps, and fuse caps.

OTHER: Explosive breaching equipment is utilized only by the Redding Police Department SWAT Team.

QUANTITY 390 FEET OF DETONATING CORD (50

GRAINS PER FOOT)
26 BLASTING CAPS
725 PERCUSSION PRIMERS

4.96 POUNDS OF SHEET EXPLOSIVE
LIFESPAN 5 YEARS
2025-26 COST NO COST
REMARKS NO DEPLOYMENTS, 4 TRAININGS
Packet Pg. 704 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 12 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) REMINGTON BREACHING SHOTGUN MODEL 870, 12–GAUGE &

AMMUNITION
CA GOVERNMENT CODE § 7070 (c)(7): Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.

EQUIPMENT CAPABILITIES: To quickly force entry through locked and/or barricaded doors, the department authorizes the use of the breaching shotgun. The use of the breaching shotgun allows officers to defeat doors that mechanical breaching tools would normally be unable to open.

The primary function of the breaching shotgun is for forcing entry. Although the breaching shotgun is a firearm, it has been modified for breaching purposes. Additionally, the selected ammunition is frangible and designed to defeat door locks and hinges.

FISCAL IMPACTS: Less than $250 annually funded by the department SWAT budget.

LEGAL & PROCEDURAL RULES GOVERNING USE: The use of the breaching shotgun is governed by Redding Police Department Policy 404.

PURPOSE & AUTHORIZED USES: When a decision has been made to conduct an emergency entry, the breaching shotgun may only be used when it appears reasonably necessary to prevent death or great bodily injury. Officers are also required to obtain the approval of a supervisor unless the circumstances make it impractical to obtain authorization and/or delayed response would jeopardize the safety of citizens, officers or suspect(s).

TRAINING REQUIRED: The training for the use of the breaching shotgun is governed by Redding Police Department Policy 404. All training and proficiency for the breaching shotgun will be documented by the SWAT Commander.

MANUFACTURER PRODUCT DESCRIPTION: Starting with a receiver machined from an 8 ½ – pound billet of steel might not be the easiest way to build a shotgun, but the end result is well worth the extra effort. No other pump shotgun can match the Model 870's strength and smooth, effortless operation. Its legendary reliability is the heart of its popularity, as evidenced by the more than 13 million outdoorsmen, law enforcement officers, competitive shooters and home defenders who have chosen the never-say-die pump gun since its introduction in 1950. That same reliability has made the Model 870 one of the most adaptable shotgun designs ever, and the best-selling shotgun of all time.

Hornady 12 Gauge breaching round frangible ¾ oz slug is designed to fit a variety of mission applications including entry (limited penetration), breaching, and training. It features a ¾ ounce frangible sintered slug.

Packet Pg. 705 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 13 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) OTHER: Breaching shotguns are specifically assigned and utilized by the Redding Police Department SWAT Team.

QUANTITY 2 REMINGTON BREACHING SHOTGUNS
35 HORNADY ¾ OZ BREACHING ROUNDS
15 DEF TECH T.K.O.BREACHING ROUNDS
LIFESPAN 15 – 20 YEARS
2025-26 COST NO COST

REMARKS NO DEPLOYMENTS OR TRAININGS

Packet Pg. 706 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 14 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) ARMALITE, AR-50A1 .50 CALIBER RIFLE & AMMUNITION
CA GOVERNMENT CODE § 7070 (c)(8) & § 7070 (c)(9): Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.

EQUIPMENT CAPABILITIES: The AR-50A1 rifle is a large caliber rifle that allows for specific uses by our SWAT Team. The capability of the large caliber allows for the penetration of ballistic, steel armor in a critical incident.

FISCAL IMPACTS: No cost. This rifle was obtained in 2010 via citizen forfeiture and retained per § 34005(b) of the Penal Code.

LEGAL & PROCEDURAL RULES GOVERNING USE: All applicable State, Federal and Local laws governing police use of force. Various Redding Police Department Policies on Use of Force, SWAT, and Firearms.

PURPOSE & AUTHORIZED USES: Redding Police policy 404.4.3 a. SWAT members must obtain SWAT Commander approval prior to training with the .50 caliber rifle. Training must be at sites approved by the SWAT Commander. b. The rifle should only be deployed in a crisis with SWAT Commander approval unless exigent circumstances justify an immediate deployment.
c. Only trained officers may deploy the rifle.

TRAINING REQUIRED: Training and qualification with the rifle will be the responsibility of the SWAT Commander. Only those SWAT members that have trained/qualified will deploy the rifle, when necessary.

MANUFACTURER PRODUCT DESCRIPTION: The AR-50A1 is a single shot bolt action rifle chambered for the powerful .50 BMG cartridge. The rifle features a unique octagonal receiver and utilizes ArmaLite's proprietary V-Channel chassis. Designed for the challenges of long-range shooting, the AR-50A1 is exceptionally accurate with a highly effective muzzle brake.

OTHER: This rifle is assigned to the Redding Police Department SWAT Team.

QUANTITY 1 RIFLE
157 ROUNDS OF AMMUNITION .50 BMG
LIFESPAN 10 + YEARS
2025-26 COST NO COST
REMARKS NO DEPLOYMENTS, 1 TRAINING
Packet Pg. 707 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 15 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) PWS MK1 .223 RIFLE
CA GOVERNMENT CODE § 7070 (c)(10): Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.

EQUIPMENT CAPABILITIES: The PWS MK1 rifle is a semi-automatic rifle defined in § 30510 and § 30515 of the Penal Code.

FISCAL IMPACTS: None for 2025-26.

LEGAL & PROCEDURAL RULES GOVERNING USE: All applicable State, Federal and Local laws governing police use of force. Various Redding Police Department Policies on Use of Force and Firearms.

PURPOSE & AUTHORIZED USES: Officers may deploy the rifle in any circumstance within Redding Police Department Policies on Use of Force and Firearms.

TRAINING REQUIRED: Officers must successfully complete a CA POST certified 16-hour patrol rifle course as well as regular department firearms training and qualifications as required by law and policy.

MANUFACTURER PRODUCT DESCRIPTION: The PWS MK1 is a magazine fed, gas/piston operated rifle available in .223 caliber and fires from a rotating locking closed bolt.

OTHER: These specific rifles are assigned to Redding Police Department SWAT Team.

QUANTITY 19 RIFLES
LIFESPAN 10 + YEARS
2025-26 COST NO COST

Packet Pg. 708 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 16 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) PWS MK1 PRO LOWERS
CA GOVERNMENT CODE § 7070 (c)(10): Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.

EQUIPMENT CAPABILITIES: The PWS MK1 Pro Lower is a semi-automatic rifle defined in § 30510 and § 30515 of the Penal Code.

FISCAL IMPACTS: None for 2025-26.

LEGAL & PROCEDURAL RULES GOVERNING USE: All applicable State, Federal and Local laws governing police use of force. Various Redding Police Department Policies on Use of Force and Firearms.

PURPOSE & AUTHORIZED USES: Officers may deploy the rifle in any circumstance within Redding Police Department Policies on Use of Force and Firearms.

MANUFACTURER PRODUCT DESCRIPTION: The PWS MK1 is a magazine fed, gas/piston operated rifle available in .223 caliber and fires from a rotating locking closed bolt.

OTHER: These specific rifles are assigned to Redding Police Department Traffic Unit and are modified to fit with their police motorcycles.

QUANTITY 5 RIFLES
LIFESPAN 10 + YEARS
2025-26 COST NO COST

Packet Pg. 709 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 17 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) LOYAL 9 MANUFACTURING M4-EX03
CA GOVERNMENT CODE § 7070 (c)(10): Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.

EQUIPMENT CAPABILITIES: The Loyal 9 M4-EX03 is a semi-automatic rifle defined in § 30510 and § 30515 of the Penal Code.

FISCAL IMPACTS: None for 2025-26.

LEGAL & PROCEDURAL RULES GOVERNING USE: All applicable State, Federal and Local laws governing police use of force. Various Redding Police Department Policies on Use of Force and Firearms.

PURPOSE & AUTHORIZED USES: Officers may deploy the rifle in any circumstance within Redding Police Department Policies on Use of Force and Firearms.

MANUFACTURER PRODUCT DESCRIPTION: The Loyal 9 M4-EX03 is a magazine fed, gas operated rifle available in .223 caliber and fires from a rotating locking closed bolt.

OTHER: These rifles replaced the patrol rifles obtained with the Defense Reutilization Marketing Office (DRMO) program. The 57 DRMO rifles were returned in 2022-2023.

QUANTITY 94 RIFLES
LIFESPAN 10 + YEARS
2025-26 COST NONE

REMARKS ASSIGNED TO ALL OFFICERS

Packet Pg. 710 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 18 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) AMMUNITION – .223 & .308
CA GOVERNMENT CODE § 7070 (c)(10): Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.

EQUIPMENT CAPABILITIES: Ammunition used for the AR-15 style carbine rifle defined in § 30510 and § 30515 of the Penal Code.

FISCAL IMPACTS: Approximately $35,000 annually purchased with department budget.

LEGAL & PROCEDURAL RULES GOVERNING USE: All applicable State, Federal and Local laws governing police use of force. Various Redding Police Department Policies on Use of Force and Firearms.

PURPOSE & AUTHORIZED USES: Ammunition used for the AR-15 style carbine rifle defined in § 30510 and § 30515 of the Penal Code.

TRAINING REQUIRED: Officers attend a 16-hour Peace Officer Standards and Training (POST) Certified Rifle Course for deployment of department rifles and use of ammunition.

MANUFACTURER PRODUCT DESCRIPTION:

Hornady TAP Urban .223 duty ammunition features a 55-grain match grade, polymer tipped, fragmenting bullet. The cartridge offers high velocity and performance similar to that of other polymer tipped Hornady .223 bullets. The cartridge has a match grade brass composite shell casing and a small rifle, staked primer pocket.

CALIBER .223
BRAND / GRAIN HORNADY / 55 FMJ
QUANTITY 2,000 ROUNDS
2025-26 COST NO COST
Packet Pg. 711 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 19 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) American Eagle® rifle ammunition offers consistent, accurate, affordable performance for the range. The loads feature quality bullets, reloadable brass cases and dependable primers. Ideal for target practice. Accurate and reliable. Consistent primers and brass.

CALIBER .223
BRAND / GRAIN FEDERAL / 55 FMJ
QUANTITY 60,000
2025-26 COST $26,652
Federal Tactical TRU 308 Winchester Ammunition is designed with the critical tactical shooter in mind. Featuring a 168-grain ballistic tip, this ammunition provides superior accuracy and terminal performance, making it ideal for personal protection and home defense applications. Manufactured in the United States, Federal Ammo offers quality and reliability at discount prices. This ammunition is specifically engineered for tactical rifle platforms, delivering needed precision and stopping power with a muzzle velocity of 2650 fps and a striking muzzle energy of 2619 ft. lbs.

Its brass casing and Boxer primer ensure reliable cycling and reloading capabilities.

CALIBER .308
BRAND / GRAIN FEDERAL TACTICAL / 168 GRAIN
QUANTITY 3600 ROUNDS
2025-26 COST $2,556
Federal Cartridge .308 Win Tactical Bonded Tip 168 Grain Duty Ammunition is made exclusively for law enforcement and achieves accuracy and terminal performance unmatched by any other ammunition. Designed to defeat the toughest barriers with minimal deflection, Tactical Bonded Tip ammo has quickly become the choice for some of the most intense conditions.

CALIBER .308
BRAND / GRAIN FEDERAL BONDED / 168 GRAIN
QUANTITY 220 ROUNDS
2025-26 COST $1916
Packet Pg. 712 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 20 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026)

CS GAS SYSTEMS
CA GOVERNMENT CODE § 7070 (c)(12): “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray.

EQUIPMENT CAPABILITIES: The use of CS gas causes mucous membranes and exposed skin to become inflamed resulting in a burning sensation. It provides a temporary respiratory effect and induces discomfort on exposed skin.

FISCAL IMPACTS: Approximately $5,000 annually purchased with department budget.

LEGAL & PROCEDURAL RULES GOVERNING USE: The use of this equipment is governed by Redding Police Department Policy 407.7.2(b).

PURPOSE & AUTHORIZED USES: CS gas is utilized during confrontations with violent or potentially violent suspects as a less lethal option to assist with the dispersal of violent crowds and/or arrest of suspects.

TRAINING REQUIRED: Specialized training as deemed by the SWAT Commander and CA POST certified department chemical agent instructors.

OTHER: Recognizing that the missions of the SWAT Team are performed in a hazardous environment, and recognizing that the safety of innocent persons, officers, and suspects is often jeopardized by the hazardous conditions, it shall be the intent of SWAT to utilize special equipment in an attempt to lessen the risk of injury or death to all involved during the performance of a SWAT operation. The SWAT Commander will ensure that only those team members properly trained and certified in the use of the special equipment will utilize the equipment.

The Redding Police Department discontinued use of the Def Tech Spede-Heat CS, CTS 5230JL CS Canister, and Clear Out Tear Gas Grenades during 2025-26. These have been removed from the Department’s inventory.

Packet Pg. 713 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 21 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) MANUFACTURER PRODUCT DESCRIPTIONS:

The Defense Technology Ferret® 40 mm and 12-gauge round: non-burning and suitable for indoor use. Used primarily by tactical teams, it is designed to penetrate barriers, such as windows, hollow core doors, wallboard and thin plywood. Upon impacting the barrier, the nose cone ruptures and instantaneously delivers a small chemical payload inside of a structure or vehicle. In a tactical deployment situation, the Ferret is primarily used to dislodge barricaded subjects from confined areas. Its purpose is to minimize the risks to all parties through pain compliance, temporary discomfort and/or incapacitation of potentially violent or dangerous subjects.

BRAND DEF-TECH 40 MM FERRET ROUND CS
DEF-TECH 12-GAUGE FERRET ROUND CS
QUANTITY 54 ROUNDS OF 40 MM
50 ROUNDS OF 12-GAUGE
LIFESPAN 5 YEARS
CTS 5230B CS Baffled Canister: Pyrotechnic grenade designed for indoor use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire.

Launchable.

BRAND CTS 5230B LAUNCHABLE CS
QUANTITY 48
LIFESPAN 5 YEARS
REMARKS 1 TRAINING
CTS 5230 CS Canister: Large diameter burning grenade that discharges a high volume of smoke and chemical agent through multiple emission ports. Specifically, for outdoor use and should not be deployed on rooftops, in crawl spaces or indoors due to potential fire hazard. Can be hand thrown or launched. Discharge duration can reach up to 40 seconds.

BRAND CTS 5230 NON-LAUNCHABLE CS
QUANTITY 34
LIFESPAN 5 YEARS
Packet Pg. 714 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 22 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) Defense Technology 40 mm Launcher: The 40LMTS is a tactical single shot launcher that features an expandable ROGERS Super Stoc and an adjustable Integrated Front Grip (IFG) with light rail.

The ambidextrous Lateral Sling Mount (LSM) and QD mounting systems allow both a single- and two-point sling attachment. The 40LMTS will fire standard 40 mm less lethal ammunition, up to

4.8 inches in cartridge length. The Picatinny Rail Mounting System will accept a wide array of enhanced optics/sighting systems.

BRAND DEF-TECH 40 MM LAUNCHER
QUANTITY 2 (SWAT)
LIFESPAN 10+ YEARS
Remington Shotgun Launcher: Starting with a receiver machined from an 8 ½ – pound billet of steel might not be the easiest way to build a shotgun, but the end result is well worth the extra effort. No other pump shotgun can match the Model 870's strength and smooth, effortless operation. Its legendary reliability is the heart of its popularity, as evidenced by the more than 13 million outdoorsmen, law enforcement officers, competitive shooters and home defenders who have chosen the never-say-die pump gun since its introduction in 1950. That same reliability has made the Model 870 one of the most adaptable shotgun designs, and the best-selling shotgun of all time.

BRAND REMINGTON 870 LAUNCHERS
QUANTITY 4
LIFESPAN 10+ YEARS

Packet Pg. 715 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 23 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026)

CTS DIVERSIONARY DEVICES
CA GOVERNMENT CODE § 7070 (c)(12): “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray.

EQUIPMENT CAPABILITIES: The use of this device is to create a light/sound diversion during critical incidents. The device utilizes a loud bang and emits a bright light made to disorient the suspect(s).

FISCAL IMPACTS: There was no cost for 2025-26 associated with the use of diversionary devices.

LEGAL & PROCEDURAL RULES GOVERNING USE: The use of diversionary devices is governed by Redding Police Department Policy 404.

PURPOSE & AUTHORIZED USES: Used during critical incidents to distract, disorient and illuminate suspects.

TRAINING REQUIRED: Specialized training as deemed by the SWAT Commander and CA POST certified Department Diversionary Device Instructors.

MANUFACTURER PRODUCT DESCRIPTION: The CTS 7290M Mini Flash-Bang is the newest generation in the evolution of the Flash-Bang. Our Model 7290M Flash-Bang exhibits all of the same attributes as its larger counterpart but in a smaller and lighter package. Weighing in at just 15 ounces, the new 7290M is approximately 30% lighter than the 7290 but still has the same 180db output of the 7290 and produces 6-8 million candelas of light. The patented design of the 7290M incorporates a porting system that eliminates movement of the body at detonation even if the top or bottom of the device should be in contact with a hard surface. In addition, internal adjustments have greatly reduced smoke output.

BRAND CTS MINI DIVERSIONARY DEVICE
QUANTITY 33
LIFESPAN 5 YEARS
REMARKS 7 TRAININGS
Packet Pg. 716 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 24 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) The patented multi-bangs feature top and bottom non-fragmenting, minimal movement devices that perform with high reliability incorporating CTS Superior fuse components with the patented and US Army adopted Confidence Clip and pin shroud.

BRAND CTS 7290-9 DIVERSIONARY
DEVICE
QUANTITY 19
LIFESPAN 5 YEARS
REMARKS 7 TRAININGS
Training Fuse used to simulate 7290M-Flash-Bang. 147 dB at 5ft. For use in 7290MT

BRAND CTS TRAINING DIVERSIONARY

DEVICE FUSE
QUANTITY 0
LIFESPAN 5 YEARS

Packet Pg. 717 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 25 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) DEF-TECH 40 MM KINETIC ENERGY LAUNCHER & PROJECTILES
CA GOVERNMENT CODE § 7070 (c)(14): The following projectile launch platforms and their associated munitions: 40 mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons.

EQUIPMENT CAPABILITIES: The Redding Police Department is committed to reducing the potential for violent confrontations. Kinetic energy projectiles, when used properly, are less likely to result in death or serious physical injury and can be used in an attempt to de-escalate a potentially deadly situation. Department approved kinetic energy projectiles are fired from 40 mm launchers.

FISCAL IMPACTS: Five launchers were purchased in 2025-26 for patrol use. The total cost of the launchers was $9,600.

LEGAL & PROCEDURAL RULES GOVERNING USE: The use of 40 mm kinetic energy projectile is governed by Redding Police Department Policy 302.

PURPOSE & AUTHORIZED USES: A sworn peace officer may utilize the Kinetic Energy Projectile in the discharge of their duties when other options have been exhausted, are ineffective, or are inappropriate during attempts to control or subdue combative or violent individuals and the use of deadly force can be forestalled.

The Kinetic Energy Projectile shall be used with discretion and care in circumstances which permit the lawful use of lethal or less lethal force.

TRAINING REQUIRED: The Division Commander shall ensure that all personnel who are authorized to carry a 40 mm control device have been properly trained and certified to carry the specific control device and are retrained or recertified as necessary.

Proficiency training shall be monitored and documented by a certified, control-device weapons instructor. All training and proficiency for control devices will be documented.

Packet Pg. 718 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) 26 | P a g e
REDDING POLICE DEPARTMENT – ANNUAL MILITARY EQUIPMENT USE REPORT (JUNE 2025– MAY 2026) MANUFACTURER PRODUCT DESCRIPTION:

The 40LMTS is a tactical single shot launcher that features an expandable ROGERS Super Stoc and an adjustable Integrated Front Grip (IFG) with light rail. The ambidextrous Lateral Sling Mount (LSM) and QD mounting systems allow both a single- and two-point sling attachment. The 40LMTS will fire standard 40 mm less lethal ammunition, up to 4.8 inches in cartridge length. The Picatinny Rail Mounting System will accept a wide array of enhanced optics/sighting systems.

BRAND DEF-TECH 40 MM LAUNCHER
QUANTITY 5 (PATROL)
2025-26 COST $9,600
LIFESPAN 10 YEARS
The eXact iMpact™ 40 mm Sponge Round is a point-of-aim, point-of-impact direct-fire round.

This lightweight, high-speed projectile consists of a plastic body and sponge nose that is spin stabilized via the incorporated rifling collar and the 40 mm launcher’s rifled barrel. The round utilizes smokeless powder as the propellant, and, therefore, has velocities that are extremely consistent. Used for Crowd Control, Patrol, and Tactical Applications.

BRAND DEF-TECH EXACT IMPACT 40MM

SPOUNGE ROUND
QUANTITY 100
LIFESPAN 10 YEARS
The CTS-4557 Sponge Baton is a spin-stabilized projectile delivering blunt trauma effect.

Although it is extremely accurate and consistent, accuracy is dependent on the launcher, using open sights vs. an improved sight, environmental conditions, and the operator. Effectiveness depends on many variables, such as distance, clothing, stature, and the point where the projectile impacts.

BRAND CTS–4557 40 MM SPONGE BATON
QUANTITY 15
LIFESPAN 10 YEARS
Packet Pg. 719 Attachment: 2026 AB 481 Inventory Report (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Equipment) Policy
707
Redding Police Department
RPD Policy Manual
Copyright Lexipol, LLC 2025/05/07, All Rights Reserved.

Published with permission by Redding Police Department
Military Equipment - 1
Military Equipment
707.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
707.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• Area denial electroshock devices, microwave weapons, water cannons, long-range acoustic devices (LRADs), acoustic hailing devices, and sound cannons. • Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

Packet Pg. 720 Attachment: Policy 707 - Military Equipment (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Redding Police Department
RPD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2025/05/07, All Rights Reserved.

Published with permission by Redding Police Department
Military Equipment - 2
707.2 POLICY
It is the policy of the Redding Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 707.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Redding Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department’s funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
707.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:

Unmanned Aerial Vehicle (UAV)
Armored Vehicle
Mobile Command Vehicle
Explosive Breaching
.50 Caliber Rifle
Rifles identified as assault weapons under Penal Code Sections 30510 and 30515 Noise Flash Diversionary Devices
Tear Gas and Munitions
Packet Pg. 721 Attachment: Policy 707 - Military Equipment (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Redding Police Department
RPD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2025/05/07, All Rights Reserved.

Published with permission by Redding Police Department
Military Equipment - 3
Kinetic Energy Weapons and Munitions
For the most recent inventory report, see the Redding Police Department website at https://cityofredding.gov/government/departments/police/policies___reference_library/ assembly_bill_481.php
707.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 707.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment used by any member of this Department shall be approved for use and in accordance with this Department policy. Military equipment used by other jurisdictions that are providing mutual aid to this Department, or otherwise engaged in law enforcement operations in this jurisdiction, shall comply with their respective military equipment use policies in rendering mutual aid.
707.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

Packet Pg. 722 Attachment: Policy 707 - Military Equipment (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military Redding Police Department
RPD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2025/05/07, All Rights Reserved.

Published with permission by Redding Police Department
Military Equipment - 4
The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 707.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

Packet Pg. 723 Attachment: Policy 707 - Military Equipment (9.9(c)--Ordinance re Military Equipment Guidelines and Annual Update on RPD Military

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept the City’s General Fund Quarterly Financial Report for the quarter ended March 31, 2026.

Fiscal Impact
There is no fiscal impact by accepting the Quarterly General Fund Financial Report (Report).

Alternative Action
The City Council (Council) could choose to reject the Report and request additional or different information.

Background/Analysis
The attached Report provides the detailed reports

REVENUES
Overview
General Fund revenue as of March 31, 2026, totals $78,471,693, which is $7,234,260 or 8.44 percent below staff’s cash flow projection. Note, the predominant reason that the General Fund revenue is below the current projection is due to timing issues with transfers of Gas Tax to reimburse the General Fund for Streets expenditures. Details for the General Fund tax revenues are provided below:

MEETING DATE: May 19, 2026
ITEM NO. 9.10(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.10(b)--Consider the City of Redding (City) General Fund Quarterly Financial Report for the quarter ended March 2026.

Greg Robinett, Director of
Finance/City Treasurer
Packet Pg. 724
Report to Redding City Council May 14, 2026
Re: 9.10(b)--Consider the City of Redding General Fund Quarterly Financial Report Page 2 Sales Tax
Sales tax revenue through March 31, 2026, totals $22,830,084, which is $161,916 or .71 percent above staff’s amended cash flow estimate of $22,668,168. Staff is not recommending any changes at this time.

Property Tax
Property tax revenue through March 31, 2026, totals $17,435,853, which is $138,837 or .8 percent above staff’s amended cash flow estimate of $17,297,016. Staff is not recommending any changes at this time.

Transient Occupancy Tax
Transient Occupancy tax revenue through March 31, 2026, totals $5,598,136, which is $28,014 or .5 percent above staff’s amended cash flow estimate of $5,570,122. Staff is not recommending any changes at this time.

Cannabis Tax
Cannabis tax revenue through March 31, 2026, totals $1,294,200, which is $26,055 or 1.97 percent below staff’s amended cash flow estimate of $1,320,255. Staff is not recommending any changes at this time.

Other Taxes
Other taxes (Business License Tax, Real Property Transfer Tax and Franchise Tax) revenue through March 31, 2026 totals $1,580,023, which is $19,808 or 1.3 percent above staff’s amended cash flow estimate of $1,560,215. Staff is not recommending any changes at this time.

Licenses & Permits
Revenues from licenses and permits through March 31, 2026, totals $1,693,707, which is $327,846 or 16.22 percent below staff’s amended cash flow estimate of $2,021,553. Staff is not recommending any changes at this time.

Fines & Penalties
Revenues from fines and penalties through March 31, 2026, totals $2,093,875, which is $1,333,744 or 175.46 percent above staff’s amended cash flow estimate of $760,131. Staff is not recommending any changes at this time.

Transfers and Internal Departments
Revenues from transfers and internal departments through March 31, 2026, totals $15,421,795, which is $7,776,551 or 33.52 percent below staff’s amended cash flow estimate of $23,198,346.

This is largely due to the timing differences created by Streets funding. There are two primary factors to the timing differences - the rate at which Streets budget is expended and when the revenue transfer is performed. Effectively by year end the transfer of available Gas Tax funding will be in alignment with the actual expenditures incurred by Streets net of any General Fund required funding. Staff is not recommending any changes at this time.

Packet Pg. 725
Report to Redding City Council May 14, 2026
Re: 9.10(b)--Consider the City of Redding General Fund Quarterly Financial Report Page 3 Revenue from Other Governmental Agencies
Revenues from other governmental agencies through March 31, 2026, totals $4,884,280, which is $173,585 or 3.63 percent below staff’s amended cash flow estimate of $5,057,865. Staff is not recommending any changes at this time.

Other Revenues
Other revenues through March 31, 2025 totals $1,986,934, which is $237,649 or 13.59 percent above staff’s amended cash flow estimate of $1,749,285. Staff is not recommending any changes at this time.

Charges for Current Services
Charges for current services revenue through March 31, 2026, totals $2,864,165, which is $1,020,325 or 26.27 percent below staff’s amended cash flow estimate of $3,884,490. Staff is not recommending any changes at this time.

Revenue from the Use of Money & Property
Revenue from the Use of Money & Property through March 31, 2026, totals $788,640, which is $170,133 or 27.51 percent above staff’s amended cash flow estimate of $618,507. Staff is not recommending any changes at this time.

EXPENDITURES
Overview
General Fund appropriations through March 31, 2026, total $121,555,844, which is an increase of $11,745,079, or 10.7 percent, since the budget was adopted by the City Council on June 17, 2025. Of this increase, $10,528,070 is from carryover from the prior year (primarily relating to grants and projects).

The City has expended $86,710,953 from the General Fund through March 31, 2026. This level of expenditure represents 71.3 percent of total appropriations and is $4,859,105 or 5.3 percent below staff’s cash flow estimate of $91,570,059 through March 31, 2026.

The following section provides a more detailed analysis of expenditure consumption by each major department or functional area. Consumption includes encumbrances that have been incurred. This means that a budget could be at a higher pace than 50 percent as a result due to contracts placed against the budget.

Police
The Police Department’s budget, totals $44,177,487, or 36.3 percent of total General Fund appropriations. The Police Department has consumed $33,040,692 or 74.8 percent of its budget, as of March 31, 2026.

Packet Pg. 726
Report to Redding City Council May 14, 2026
Re: 9.10(b)--Consider the City of Redding General Fund Quarterly Financial Report Page 4 Fire
The Fire Department’s budget totals $28,670,928, or 23.6 percent of total General Fund appropriations. The Fire Department has consumed $23,080,795 or 80.5 percent of its budget, through March 31, 2026.

Public Works
The Public Works Department’s General Fund budget (Public Works Engineering, Transportation and Engineering, and Streets) totals $21,693,091 or 18.1 percent of total General Fund appropriations. The Public Works Department has consumed $11,023,664 or 50.8 percent of its budget, through March 31, 2026.

Development Services
The Development Services Department’s General Fund budget (Planning, Building, Permit Center, and Engineering & Design) totals $6,531,045 or 5.4 percent of total General Fund appropriations. The Department has consumed $4,332,843 or 66.3 percent of its budget, through March 31, 2026.

Community Services
The Community Services Department’s General Fund budget (Recreation, Parks and Community Services Administration) totals $8,976,108, or 7.4 percent of total General Fund appropriations.

The department has consumed $6,324,026 or 70.5 percent of its budget, through March 31, 2026.

Non-Departmental/Debt Service
The budgets for the Non-Departmental, Animal Regulation and Debt Service divisions total $4,350,760, or 3.6 percent of total General Fund appropriations. These departments and divisions have consumed $3,602,360 or 82.8 percent of their budgets, through March 31, 2026.

General Government
The current budgets for general government departments and divisions (i.e., City Council, City Clerk, City Treasurer, City Manager, City Attorney, Finance, Purchasing, and Personnel) total $7,156,425, or 5.9 percent of total General Fund appropriations. These departments and divisions have consumed $5,873,196 or 82.1 percent of their budgets, through March 31, 2026.

General Fund Reserves
As of March 31, 2025, the General Fund cash balance was $261,398 or 0.2 percent. At year end, the ten-year plan projects the reserve to be 9.2 percent. Future years of the attached 10-Year Plan show a steadily worsening financial position, assuming no changes to future expenditures.

At the direction of the City Manager, the City has implemented the following measures: citywide efficiency study and interim cost control measures, including expenditure freeze except for mission-critical items; an overtime freeze, except for mission-critical overtime; and a hiring freeze, except for mission-critical positions.

Packet Pg. 727
Report to Redding City Council May 14, 2026
Re: 9.10(b)--Consider the City of Redding General Fund Quarterly Financial Report Page 5 The citywide efficiency study has already identified some potential savings from stale encumbrances and capital projects. Staff is working to validate the potential savings, stale encumbrances, capital projects and interim cost control measures, and will return to Council as soon as the amounts are confirmed to realize the confirmed savings in the appropriate Fiscal Year.

General Fund Overtime
The City’s General Fund overtime expense totals $3,732,904 through March 31, 2026. This is $1,059,9044 above staff’s cash flow estimate of $2,673,000. The expenditures year-to-date compared to the year-to-date budget are listed below, of which, the four largest overtime budgets are Fire, Police, Parks, and Streets:
• The Fire Department had overtime expenses through March 31, 2026, of $2,308,396 compared to a total overtime budget of $2,020,000;
• The Police Department had overtime expenses through March 31, 2025, of $1,250,576 compared to a total overtime budget of $1,469,000;
• The Community Services Department had overtime expenses through March 31, 2025, of $114,101 compared to a total overtime budget of $0;
• The Public Works Department had overtime expenses through March 31, 2025, of $55,837 compared to a total overtime budget of $75,000; and • All other General Fund Departments had overtime expenses through March 31, 2024, of $3,995 compared to an overtime budget of $0.

Although some of the aforementioned expenses are either over budget or nearly over budget, there are no additional budget requests at this time. Each department has adequate savings in areas such as personnel charges and/or additional cross charges to other City departments, to offset the excess costs.

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

Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable Ten-Year Financial Plans for all funds.”
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Attachments
Budget Report Third Quarter FY 2026 (through March 2026) Packet Pg. 728
Year End Budget Report
Section One
Actual Revenues Compared to Cash Flow Estimates Year to Date Packet Pg. 729 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly YTD Projection Actual Over (Under) %

GENERAL FUND TAXES
Property Taxes 17,297,016 17,435,853 138,837 100.80%
Sales Tax 22,668,168 22,830,084 161,916 100.71%
Transient Occupancy Tax 5,570,122 5,598,136 28,014 100.50% Franchise Tax 547,715 520,019 (27,696) 94.94%
Business License Tax 675,000 722,111 47,111 106.98%
Real Property Transfer Tax 337,500 337,893 393 100.12%
Cannabis Tax 1,320,255 1,294,200 (26,055) 98.03%
TOTAL TAXES 48,415,776 48,738,297 322,521 100.67%

LICENSES AND PERMITS
Animal Licenses 37,503 21,814 (15,689) 58.17%
Building Permits 1,425,123 926,758 (498,365) 65.03%
Engineering Encroachment Permits 74,997 78,908 3,911 105.22% Electrical Permits 213,075 192,004 (21,071) 90.11%
Transportation Permits 8,802 7,568 (1,234) 85.98%
Plumbing Permits 99,324 62,862 (36,462) 63.29%
Mechanical Permits 162,729 220,517 57,788 135.51%
Engineering Grading Permits - 183,276 183,276 *
TOTAL LICENSES AND PERMITS 2,021,553 1,693,707 (327,846) 83.78%

FINES AND PENALTIES
Traffic Safety Fines 572,184 782,322 210,138 136.73%
Code Enforcement Fines 120,447 1,197,456 1,077,009 994.18% Other Fines & Fees 67,500 96,731 29,231 143.30%
Criminal Fines - 17,366 17,366 *
TOTAL FINES AND PENALTIES 760,131 2,093,875 1,333,744 275.46%

TRANSFERS AND INTERNAL DEPARTMENTS
Charges to Other Departments 5,491,755 5,476,875 (14,880) 99.73% Property In Lieu of Tax 4,497,453 4,497,450 (3) 100.00% Internal Advances/Loans (54,000) (74,776) (20,776) 138.47% Fund Transfers From 14,366,138 6,475,470 (7,890,668) 45.07% Fund Transfers To (1,103,000) (953,224) 149,776 86.42%
TOTAL TRANSFERS AND INTERNAL 23,198,346 15,421,795 (7,776,551) 66.48%

REVENUE FROM OTHER GOVERNMENTAL AGENCIES
Federal Grant Operating 1,550,043 - (1,550,043) 0.00%
State Grant Operating - 17,747 17,747 *
State Non-Grant Funding 348,741 588,929 240,188 168.87% County Non-Grant Funding - 36,734 36,734 *
Other Government Grant Operating 3,159,081 4,240,871 1,081,790 134.24% TOTAL REVENUE FROM OTHER GOVT 5,057,865 4,884,280 (173,585) 96.57%

OTHER REVENUES
Late Fees 1,275,003 1,332,355 57,352 104.50%
Contributions 84,375 257,283 172,908 304.93%
Miscellaneous Receipts 153,657 54,792 (98,865) 35.66%
Reimbursements 236,250 342,504 106,254 144.98%
TOTAL OTHER REVENUE 1,749,285 1,986,934 237,649 113.59% Actual Revenue Compared to Cash Flow Estimates Year To Date City of Redding - General Fund
March 2026
Packet Pg. 730 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly YTD Projection Actual Over (Under) %
Actual Revenue Compared to Cash Flow Estimates Year To Date City of Redding - General Fund
March 2026

CHARGES FOR CURRENT SERVICES
Planning Permits - Subdivisions 367,416 278,076 (89,340) 75.68% Building Plan - Recording Fees 20,412 13,076 (7,336) 64.06% Plan Check Fees 659,799 577,220 (82,579) 87.48%
Engineering Land Development Fees 472,500 - (472,500) 0.00% Technology Surcharge 200,898 139,504 (61,394) 69.44%
Cannabis App/Permit Fees 600,003 522,922 (77,081) 87.15% Animal Shelter Fees 4,500 3,429 (1,071) 76.20%
Inspection Fees 2,628 2,793 165 106.28%
Fingerprint Fees 4,419 5,893 1,474 133.36%
Fire Permits & Fees 91,503 56,581 (34,922) 61.84%
DUI Emergency Response 56,250 56,909 659 101.17%
Swimming Pool Receipts 78,840 34,288 (44,552) 43.49%
RAC Swim Shop/Rental 17,415 19,637 2,222 112.76%
RAC Admission 107,046 61,249 (45,798) 57.22%
RAC Swim Team 5,571 12,995 7,424 233.26%
Swimming Pool Concessions 43,506 29,357 (14,149) 67.48% Other Charges and Fees 693,477 1,319,302 625,825 190.24% Recreation Sports 533,529 431,408 (102,121) 80.86%
Bad Debt Write-Off (75,222) (700,473) (625,251) 931.21% TOTAL CHARGES FOR CURRENT SERVICES 3,884,490 2,864,165 (1,020,325) 73.73%

REVENUE FROM THE USE OF MONEY & PROPERTY
Property Rentals 543,510 922,940 379,430 169.81%
Investment Income 74,997 (134,300) (209,297) -179.07%
TOTAL REVENUE - USE OF MONEY & PROPERTY 618,507 788,640 170,133 127.51% TOTAL GENERAL FUND 85,705,953 78,471,693 (7,234,260) 91.56% Packet Pg. 731 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly Year End Budget Report
Section Two
Actual Revenue Compared to Total Budget Forecast
Packet Pg. 732 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly Amended Budget Actual Over (Under) %

GENERAL FUND TAXES
Property Taxes 30,644,000 17,435,853 (13,208,147) 56.90% Sales Tax 29,648,000 22,830,084 (6,817,916) 77.00%
Transient Occupancy Tax 7,334,000 5,598,136 (1,735,864) 76.33% Franchise Tax 1,136,000 520,019 (615,981) 45.78%
Business License Tax 900,000 722,111 (177,889) 80.23%
Real Property Transfer Tax 450,000 337,893 (112,107) 75.09% Cannabis Tax 1,778,790 1,294,200 (484,590) 72.76%
TOTAL TAXES 71,890,790 48,738,297 (23,152,493) 67.79%

LICENSES AND PERMITS
Animal Licenses 50,000 21,814 (28,186) 43.63%
Building Permits 1,900,160 926,758 (973,402) 48.77%
Engineering Encroachment Permits 100,000 78,908 (21,092) 78.91% Electrical Permits 284,100 192,004 (92,096) 67.58%
Transportation Permits 11,740 7,568 (4,172) 64.46%
Plumbing Permits 132,430 62,862 (69,568) 47.47%
Mechanical Permits 216,970 220,517 3,547 101.63%
Engineering Grading Permits 183,276 183,276 *
TOTAL LICENSES AND PERMITS 2,695,400 1,693,707 (1,001,693) 62.84%

FINES AND PENALTIES
Traffic Safety Fines 520,620 782,322 261,702 150.27%
Code Enforcement Fines 160,600 1,197,456 1,036,856 745.61% Other Fines & Fees 90,000 96,731 6,731 107.48%
Criminal Fines 20,000 17,366 (2,634) 86.83%
TOTAL FINES AND PENALTIES 791,220 2,093,875 1,302,655 264.64%

TRANSFERS AND INTERNAL DEPARTMENTS
Charges to Other Departments 7,322,340 5,476,875 (1,845,465) 74.80% Property In Lieu of Tax 5,996,600 4,497,450 (1,499,150) 75.00% Internal Advances/Loans (72,000) (74,776) (2,776) 103.86% Fund Transfers From 19,154,850 6,475,470 (12,679,380) 33.81% Fund Transfers To (2,945,820) (953,224) 1,992,596 32.36% TOTAL TRANSFERS AND INTERNAL 29,455,970 15,421,795 (14,034,175) 52.36%

REVENUE FROM OTHER GOVERNMENTAL AGENCIES
Federal Grant Operating 2,066,720 - (2,066,720) 0.00%
State Non-Grant Funding 465,000 588,929 123,929 126.65% County Non-Grant Funding - 36,734 36,734 *
Other Government Grant Operating - 4,240,871 4,240,871 * Other Government Non-Grant Funding 962,120 - (962,120) 0.00% TOTAL REVENUE FROM OTHER GOVT 3,493,840 4,884,280 1,390,440 139.80% Actual Revenue Compared to Total Budget Forecast
City of Redding - General Fund
March 2026
Packet Pg. 733 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly Amended Budget Actual Over (Under) %
Actual Revenue Compared to Total Budget Forecast
City of Redding - General Fund
March 2026

OTHER REVENUES
Late Fees 1,700,000 1,332,355 (367,645) 78.37%
Contributions 112,500 257,283 144,783 228.70%
Miscellaneous Receipts 204,890 54,792 (150,098) 26.74%
Reimbursements 315,000 342,504 27,504 108.73%
TOTAL OTHER REVENUE 2,332,390 1,986,934 (345,456) 85.19%

CHARGES FOR CURRENT SERVICES
Planning Permits - Subdivisions 489,890 278,076 (211,814) 56.76% Building Plan - Recording Fees 27,220 13,076 (14,144) 48.04% Plan Check Fees 879,730 577,220 (302,510) 65.61%
Engineering Land Development Fees 630,000 - (630,000) 0.00% Technology Surcharge 267,860 139,504 (128,356) 52.08%
Cannabis App/Permit Fees 800,000 522,922 (277,078) 65.37% Animal Shelter Fees 6,000 3,429 (2,571) 57.15%
Inspection Fees 3,500 2,793 (707) 79.80%
Fingerprint Fees 5,900 5,893 (7) 99.88%
Fire Permits & Fees 122,000 56,581 (65,419) 46.38%
DUI Emergency Response 75,000 56,909 (18,091) 75.88%
Swimming Pool Receipts 105,110 34,288 (70,822) 32.62%
RAC Swim Shop/Rental 23,220 19,637 (3,583) 84.57%
RAC Admission 142,730 61,249 (81,482) 42.91%
RAC Swim Team 7,420 12,995 5,575 175.13%
Swimming Pool Concessions 58,010 29,357 (28,653) 50.61% Other Charges and Fees 924,630 1,319,302 394,672 142.68% Recreation Sports 711,340 431,408 (279,932) 60.65%
Bad Debt Write-Off (100,300) (700,473) (600,173) 698.38% TOTAL CHARGES FOR CURRENT SERVICES 5,179,260 2,864,165 (2,315,095) 55.30%

REVENUE FROM THE USE OF MONEY & PROPERTY
Property Rentals 724,670 922,940 198,270 127.36%
Investment Income 100,000 (134,300) (234,300) -134.30%
TOTAL REVENUE - USE OF MONEY & PROPERTY 824,670 788,640 (36,030) 95.63% TOTAL GENERAL FUND 116,663,540 78,471,693 (38,191,847) 67.26% Packet Pg. 734 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly Year End Budget Report
Section Three
Actual Expenditures Compared to Cash Flow Estimates
Packet Pg. 735 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly YTD Projection Actual Over (Under) Percentage
1001-City Council 156,323 131,968 (24,355) 84.42%
1011-City Manager 485,069 1,255,502 770,434 258.83%
1021-City Clerk 885,637 825,081 (60,556) 93.16%
1031-City Attorney 760,472 653,211 (107,260) 85.90%
1041-City Treasurer 526,517 453,221 (73,296) 86.08%
1045-Finance 1,414,541 1,578,579 164,039 111.60%
1048-Purchasing 414,683 347,496 (67,187) 83.80%
1051-Personnel 724,078 488,523 (235,555) 67.47%
1061-Animal Regulation 820,860 817,400 (3,460) 99.58%
1091-General Fund Debt Service 1,881,343 1,970,304 88,961 104.73% 1099-Non-Departmental 964,043 799,636 (164,407) 82.95%
1101-Permit Center 537,595 491,519 (46,076) 91.43%
1111-Building Department 1,921,599 1,465,755 (455,844) 76.28% 1121-Planning 1,573,855 1,663,211 89,356 105.68%
1131-Code Enforcement 784,610 683,451 (101,159) 87.11%
1191-Subdivision & Land Planning 80,625 20,189 (60,436) 25.04% 1401-Police - Administration 3,533,353 3,250,445 (282,908) 91.99% 1402-Police - Field Operations 21,490,472 21,877,995 387,524 101.80% 1403-Police - Investigations 4,688,781 4,281,840 (406,941) 91.32% 1404-Police - Services Division 3,420,510 3,528,927 108,417 103.17% 1501-Fire - Administration 1,929,826 1,907,803 (22,023) 98.86% 1502-Fire - Suppression 18,392,947 19,741,201 1,348,254 107.33% 1503-Fire - Prevention 1,180,424 1,229,651 49,228 104.17% 1601-Public Works - Engineering 1,016,480 797,711 (218,769) 78.48% 1611-Engineering and Design 472,500 404,300 (68,200) 85.57% 1621-Streets - General and Administrative 4,095,896 3,783,696 (312,199) 92.38% 1631-Streets - Capital 10,684,943 6,088,512 (4,596,431) 56.98% 1701-Community Services Administration 504,778 444,455 (60,323) 88.05% 1711-Parks 3,392,427 3,316,718 (75,709) 97.77%
1721-Recreation Programs 1,677,249 1,531,260 (145,989) 91.30% 1725-Aquatic Center 452,694 272,280 (180,414) 60.15%
1726-Redding Sports Complex 695,783 601,029 (94,754) 86.38% 1750-Midtown Mall 9,150 8,084 (1,066) 88.35%
Total 91,570,059 86,710,953 -4,859,105 94.69%
Actual Expenditures Compared to Budget Cash Flow Estimates City of Redding - General Fund
March 2025
*Actual Includes Payments on Previous Year Obligations/Encumbrances. Encumbrances are reductions to 10-Year Plan Beginning Cash from the Audited Cash Figure.

Packet Pg. 736 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly Year End Budget Report
Section Four
Actual Expenditures Compared to Budget
Packet Pg. 737 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly Adopted Budget
Budget
Amendments Total Budget YTD Actual
Encumbrances &
Commitments
Total
Consumption
Unencumbered
Balance
%
Consumed
1001-City Council 208,421.00 10.00 208,431.00 131,967.82 300.00 132,267.82 76,163.18 63.46% 1011-City Manager 614,428.00 32,330.00 646,758.00 1,255,502.11 370.00 1,255,872.11 (609,114.11) 194.18% 1021-City Clerk 899,031.00 281,818.00 1,180,849.00 825,080.85 874.84 825,955.69 354,893.31 69.95% 1031-City Attorney 933,468.00 80,494.00 1,013,962.00 653,211.43 135,570.00 788,781.43 225,180.57 77.79% 1041-City Treasurer 701,383.00 640.00 702,023.00 453,221.17 430.00 453,651.17 248,371.83 64.62% 1045-Finance 1,884,094.00 1,960.00 1,886,054.00 1,578,579.03 1,140.00 1,579,719.03 306,334.97 83.76% 1048-Purchasing 552,455.00 456.00 552,911.00 347,496.00 340.00 347,836.00 205,075.00 62.91% 1051-Personnel 964,138.00 1,299.00 965,437.00 488,522.53 590.00 489,112.53 476,324.47 50.66% 1061-Animal Regulation 1,052,340.00 42,140.00 1,094,480.00 817,399.77 268,265.71 1,085,665.48 8,814.52 99.19% 1091-General Fund Debt Service 1,970,890.00 0.00 1,970,890.00 1,970,303.76 0.00 1,970,303.76 586.24 99.97% 1099-Non-Departmental 1,285,390.00 0.00 1,285,390.00 799,635.92 (253,245.15) 546,390.77 738,999.23 42.51% 1101-Permit Center 716,119.00 674.00 716,793.00 491,518.98 430.00 491,948.98 224,844.02 68.63% 1111-Building Department 2,592,309.00 -30,177.00 2,562,132.00 1,465,755.03 1,570.00 1,467,325.03 1,094,806.97 57.27% 1121-Planning 2,096,653.00 1,820.00 2,098,473.00 1,663,211.10 1,270.00 1,664,481.10 433,991.90 79.32% 1131-Code Enforcement 988,822.00 57,325.00 1,046,147.00 683,451.01 600.00 684,051.01 362,095.99 65.39% 1191-Subdivision & Land Planning 107,500.00 0.00 107,500.00 20,188.61 4,848.00 25,036.61 82,463.39 23.29% 1401-Police - Administration 4,578,496.00 132,641.00 4,711,137.00 3,250,444.66 22,830.00 3,273,274.66 1,437,862.34 69.48% 1402-Police - Field Operations 26,885,239.00 1,768,723.00 28,653,962.00 21,877,995.18 85,100.99 21,963,096.17 6,690,865.83 76.65% 1403-Police - Investigations 6,251,456.00 252.00 6,251,708.00 4,281,839.95 (7,344.35) 4,274,495.60 1,977,212.40 68.37% 1404-Police - Services Division 4,560,678.00 2.00 4,560,680.00 3,528,927.42 898.16 3,529,825.58 1,030,854.42 77.40% 1501-Fire - Administration 2,571,222.00 1,879.00 2,573,101.00 1,907,803.02 131,560.00 2,039,363.02 533,737.98 79.26% 1502-Fire - Suppression 24,011,390.00 512,539.00 24,523,929.00 19,741,201.11 69,630.29 19,810,831.40 4,713,097.60 80.78% 1503-Fire - Prevention 1,572,171.00 1,727.00 1,573,898.00 1,229,651.01 950.00 1,230,601.01 343,296.99 78.19% 1601-Public Works - Engineering 1,348,777.00 6,530.00 1,355,307.00 797,710.94 (187,548.52) 610,162.42 745,144.58 45.02% 1611-Engineering and Design 630,000.00 0.00 630,000.00 404,299.86 380.00 404,679.86 225,320.14 64.23% 1621-Streets - General and Administrative 5,452,484.00 8,710.00 5,461,194.00 3,783,696.28 296,946.59 4,080,642.87 1,380,551.13 74.72% 1631-Streets - Capital 5,719,050.00 8,527,540.00 14,246,590.00 6,088,511.66 (160,333.12) 5,928,178.54 8,318,411.46 41.61% 1701-Community Services Administration 672,444.00 593.00 673,037.00 444,455.10 410.00 444,865.10 228,171.90 66.10% 1711-Parks 4,271,888.00 251,348.00 4,523,236.00 3,316,718.33 133,765.41 3,450,483.74 1,072,752.26 76.28% 1721-Recreation Programs 2,230,562.00 5,770.00 2,236,332.00 1,531,260.36 6,823.79 1,538,084.15 698,247.85 68.78% 1725-Aquatic Center 603,584.00 8.00 603,592.00 272,279.71 4,659.71 276,939.42 326,652.58 45.88% 1726-Redding Sports Complex 871,683.00 56,028.00 927,711.00 601,029.27 4,530.00 605,559.27 322,151.73 65.27% 1750-Midtown Mall 12,200.00 0.00 12,200.00 8,084.40 10.00 8,094.40 4,105.60 66.35% Total 109,810,765.00 11,745,079.00 121,555,844.00 86,710,953.38 566,622.35 87,277,575.73 34,278,268.27 71.80% Actual Expenditures Compared to Budget Year to Date
City of Redding - General Fund
March 2025
Packet Pg. 738 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Year End Budget Report
Section Five
Carryover Fiscal Year 2025 to Fiscal Year 2026
Packet Pg. 739 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly Carryovers
1001-City Council
-
1011-City Manager
-
1021-City Clerk
-
1031-City Attorney
-
1041-City Treasurer
-
1045-Finance
-
1048-Purchasing
-
1051-Personnel
-
1061-Animal Regulation
-
1091-General Fund Debt Service
-
1099-Non-Departmental
-
1101-Permit Center
-
1111-Building Department 7,450
1121-Planning
-
1131-Code Enforcement
-
1191-Subdivision & Land Planning
-
1401-Police - Administration
-
1402-Police - Field Operations 1,401,100
1403-Police - Investigations
-
1404-Police - Services Division
-
1501-Fire - Administration
-
1502-Fire - Suppression 481,250
1503-Fire - Prevention
-
1601-Public Works - Engineering 39,220
1611-Engineering and Design
-
1621-Streets - General and Administrative
-
1631-Streets - Capital 8,527,540
1701-Community Services Administration
-
1711-Parks 71,510
1721-Recreation Programs
-
1725-Aquatic Center
-
1726-Redding Sports Complex
-
1750-Midtown Mall
-
1999-Transportation & RABA Support
-
Total 10,528,070
Carryovers
City of Redding - General Fund
FY 2025 to FY 2026
Packet Pg. 740 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly

GENERAL FUND TEN YEAR PLAN
Updated Effective March 10, 2026
Packet Pg. 741 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Redding General Fund Quarterly Adopted Amended Adopted Amended
2025-26 Adjust 25-26 2026-27 Adjust 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 Beginning Cash Balance 9,000 (2,000) 7,000 11,558 9,929 8,104 3,987 (1,252) (6,306) (11,195) (15,351) (19,065) (21,213) (22,431) Revenues 102,823 954 103,777 104,999 (2,600) 102,399 104,285 107,067 109,922 112,866 115,902 119,038 122,275 125,627 129,090 Net Transfers 7,591 - 7,591 7,680 - 7,680 7,464 7,687 7,918 8,156 8,400 8,652 8,912 9,179 9,455 Total Revenues 110,413 954 111,367 112,679 (2,600) 110,079 111,749 114,754 117,840 121,022 124,302 127,691 131,187 134,806 138,545 Personnel Costs (76,088) - (76,088) (80,236) - (80,236) (82,923) (86,098) (88,018) (90,026) (91,532) (93,404) (94,413) (96,131) (97,642) Operating Costs (25,349) (595) (25,944) (26,201) (95) (26,295) (27,029) (27,840) (28,675) (29,536) (30,422) (31,334) (32,274) (33,243) (34,240) Capital Outlay (6,408) - (6,408) (6,104) - (6,104) (6,287) (6,476) (6,670) (6,870) (7,076) (7,289) (7,507) (7,732) (7,964) Debt Service (1,965) - (1,965) (1,318) - (1,318) (1,314) (1,313) (1,310) (1,309) (1,311) (1,315) (1,132) (966) (963) Savings 1,955 12 1,967 2,048 2 2,050 1,688 1,734 1,781 1,831 1,883 1,936 1,992 2,048 2,107 Net Expenditures (107,856) (583) (108,439) (111,811) (93) (111,904) (115,866) (119,994) (122,893) (125,910) (128,458) (131,405) (133,335) (136,024) (138,702) Ending Cash Balance 11,558 (1,629) 9,929 12,425 (2,693) 8,104 3,987 (1,252) (6,306) (11,195) (15,351) (19,065) (21,213) (22,431) (22,589) Projections toward Council Objectives
Ending Cash as Percentage of
Expenditures 10.7% 9.2% 11.1% 7.2% 3.4% -1.0% -5.1% -8.9% -11.9% -14.5% -15.9% -16.5% -16.3% Projected Personnel Percentage 69.3% 68.9% 70.5% 70.4% 70.5% 70.7% 70.6% 70.5% 70.2% 70.0% 69.8% 69.6% 69.3% Required adjustments to
Maintain 10% Reserve 2,200 870 4,490 5,750 5,250 5,200 4,400 4,000 2,350 1,500 400 Projected Ending Cash after
required adjustments (1,629) 11,558 10,799 (2,693) 12,425 11,174 11,547 12,058 12,254 12,565 12,809 13,095 13,297 13,579 13,821 Ending Cash as Percentage of
Expenditures 10.7% 10.0% 11.1% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% Fiscal Year
City of Redding
General Fund Ten Year Plan (in thousands)
Fiscal Year Ending 2026 & 2027
Updated March 11, 2026
Packet Pg. 742 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Adopted Amended Adopted Amended
2025-26 Adjust. 2025-26 2026-27 Adjust 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 Sales Tax 31,368 (1,720) 29,648 31,995 (1,903) 30,092 30,543 31,002 31,467 31,939 32,418 32,904 33,397 33,898 34,407 Property Tax 30,560 84 30,644 31,500 86 31,586 32,534 33,510 34,515 35,551 36,617 37,716 38,847 40,013 41,213 TOT 7,570 (236) 7,334 7,873 (282) 7,591 7,857 8,132 8,416 8,711 9,016 9,331 9,658 9,996 10,346 Cannabis Tax 1,939 (160) 1,779 2,016 (237) 1,779 1,850 1,924 2,001 2,081 2,164 2,251 2,341 2,435 2,532 Other Taxes 2,750 (264) 2,486 2,750 (264) 2,486 2,585 2,689 2,796 2,908 3,025 3,146 3,271 3,402 3,538 Licenses & Permits 2,695 - 2,695 2,823 - 2,823 2,936 3,053 3,175 3,302 3,434 3,572 3,714 3,863 4,018 Fines & Penalties 791 - 791 811 - 811 844 878 913 949 987 1,027 1,068 1,111 1,155 Other Government 3,364 3,250 6,614 2,175 - 2,175 1,381 1,422 1,465 1,509 1,554 1,601 1,649 1,698 1,749 Redding Rancheria 129 - 129 132 - 132 136 140 144 149 153 158 162 167 172 Internal Departments 13,319 - 13,319 14,457 - 14,457 14,891 15,338 15,798 16,272 16,760 17,263 17,781 18,314 18,864 Service Charges 5,179 - 5,179 5,299 - 5,299 5,511 5,731 5,960 6,199 6,447 6,705 6,973 7,252 7,542 Other Revenue 2,332 - 2,332 2,338 - 2,338 2,408 2,480 2,555 2,631 2,710 2,791 2,875 2,961 3,050 Use of Money & Property 725 - 725 729 - 729 729 729 729 729 729 729 729 729 729 Interest 100 - 100 100 - 100 81 40 (13) (63) (112) (154) (191) (212) (224) Subtotal 954 102,823 103,777 104,999 (2,600) 102,399 104,285 107,067 109,922 112,866 115,902 119,038 122,275 125,627 129,090 Transfers In:

Gas Taxes 10,086 - 10,086 10,151 - 10,151 10,455 10,769 11,092 11,425 11,768 12,121 12,484 12,859 13,245 Debt Service - - - - - - - - - - - - - - -
Other Transfers In 523 - 523 523 - 523 538 554 571 588 606 624 643 662 682 Total Transfers In - 10,609 10,609 10,673 - 10,673 10,994 11,323 11,663 12,013 12,373 12,745 13,127 13,521 13,926 Transfers Out:

CVB & Convention Center (750) - (750) (756) - (756) (779) (802) (826) (851) (877) (903) (930) (958) (987) Parking (38) - (38) - - - - - - - - - - - -
Library (1,055) - (1,055) (1,086) - (1,086) (1,119) (1,153) (1,187) (1,223) (1,259) (1,297) (1,336) (1,376) (1,418) Rolling Stock (885) - (885) (840) - (840) (865) (891) (918) (945) (974) (1,003) (1,033) (1,064) (1,096) Other Equipment (218) - (218) (239) - (239) (246) (253) (261) (268) (276) (285) (293) (302) (311) Internal Advances - - - - - - - - - - - - - - -
Other Transfers Out (72) - (72) (72) - (72) (521) (537) (553) (569) (587) (604) (622) (641) (660) Total Transfers Out - (3,018) (3,018) (2,993) - (2,993) (3,530) (3,636) (3,745) (3,857) (3,973) (4,092) (4,215) (4,341) (4,472) Net Transfers - 7,591 7,591 7,680 - 7,680 7,464 7,687 7,918 8,156 8,400 8,652 8,912 9,179 9,455 Total Revenues 110,413 954 111,367 112,679 (2,600) 110,079 111,749 114,754 117,840 121,022 124,302 127,691 131,187 134,806 138,545 Revenue Assumptions
Sales Tax 2.0% -2.0% -2.0% 2.0% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% Property Tax 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Transient Occupancy Tax 4.0% 2.0% 2.0% 4.0% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% Fee Revenues Projected Projected Projected Projected Projected Projected 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Other Government Projected Projected Projected Projected Projected Projected 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Other Revenue Projected Projected Projected Projected Projected Projected 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Internal Departments Projected Projected Projected Projected Projected Projected 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% All Revenues (Not specific) Projected Projected Projected Projected Projected Projected 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Interest (Percent of Cash) 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% City of Redding
General Fund Ten Year Plan (in thousands)
Revenues
Fiscal Year Ending 2026 & 2027
Fiscal Year Ended
Packet Pg. 743 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of Adopted Amended Adopted Amended
2025-26 Adjust 2025-26 2026-27 Adjust 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 Safety UAL Payments 15,790 16,912 17,140 17,332 17,146 17,122 16,453 16,237 15,812 Misc UAL Payments 5,590 6,028 6,095 6,147 5,983 5,964 5,680 5,589 5,450 PARS UAL Payments - - - - - - - - -
Police
Personnel 34,556 - 34,556 36,867 - 36,867 28,611 29,355 30,113 30,896 31,754 32,638 33,546 34,480 35,438 Operating 7,347 150 7,498 7,696 - 7,696 7,927 8,165 8,410 8,662 8,922 9,190 9,465 9,749 10,042 Capital Outlay/Project 372 - 372 274 - 274 282 291 300 309 318 327 337 347 358 Subtotal 150 42,276 42,426 44,837 - 44,837 36,820 37,811 38,822 39,866 40,994 42,155 43,348 44,576 45,838 Fire
Personnel 23,238 - 23,238 24,244 - 24,244 18,093 18,560 19,038 19,593 20,138 20,698 21,274 21,866 22,474 Operating 4,916 35 4,951 5,121 - 5,121 5,274 5,433 5,596 5,764 5,936 6,115 6,298 6,487 6,682 Capital Outlay/Project - - - - - - - - - - - - - - -
Subtotal 35 28,155 28,190 29,365 - 29,365 23,367 23,992 24,634 25,356 26,074 26,812 27,572 28,353 29,156 Transportation & Engineering
Personnel 2,487 - 2,487 2,619 - 2,619 1,411 1,448 1,474 1,511 1,553 1,600 1,646 1,695 1,744 Operating 4,913 15 4,928 5,014 - 5,014 5,164 5,319 5,479 5,643 5,812 5,987 6,166 6,351 6,542 Capital Outlay/Project 5,750 - 5,750 5,710 - 5,710 5,881 6,058 6,239 6,427 6,619 6,818 7,023 7,233 7,450 Subtotal 15 13,150 13,166 13,342 - 13,342 12,457 12,824 13,192 13,581 13,985 14,405 14,835 15,280 15,736 Parks & Recreation
Personnel 4,887 - 4,887 5,059 - 5,059 3,871 3,980 4,088 4,204 4,326 4,453 4,582 4,716 4,854 Operating 3,500 22 3,521 3,607 - 3,607 3,715 3,827 3,942 4,060 4,182 4,307 4,436 4,569 4,706 Capital Outlay/Project 286 - 286 120 - 120 124 127 131 135 139 143 148 152 157 Subtotal 22 8,673 8,695 8,786 - 8,786 7,709 7,934 8,161 8,399 8,647 8,903 9,166 9,438 9,717 Development Services
Personnel 5,148 - 5,148 5,367 - 5,367 4,471 4,592 4,713 4,842 4,976 5,116 5,258 5,405 5,556 Operating 1,343 22 1,365 1,418 - 1,418 1,461 1,505 1,550 1,596 1,644 1,693 1,744 1,796 1,850 Capital Outlay/Project - - - - - - - - - - - - - - -
Subtotal 22 6,491 6,513 6,785 - 6,785 5,931 6,097 6,263 6,438 6,621 6,809 7,002 7,202 7,406 General Government & Other
Personnel 5,771 - 5,771 6,080 - 6,080 5,086 5,224 5,358 5,503 5,655 5,814 5,975 6,142 6,313 Operating 3,330 351 3,681 3,345 95 3,439 3,488 3,592 3,700 3,811 3,925 4,043 4,164 4,289 4,418 Capital Outlay/Project - - - - - - - - - - - - - - -
Debt Service 1,965 - 1,965 1,318 - 1,318 1,314 1,313 1,310 1,309 1,311 1,315 1,132 966 963 Subtotal 351 11,066 11,417 10,743 95 10,837 9,888 10,129 10,368 10,623 10,891 11,171 11,271 11,398 11,694 Add Back Personnel - - - - - - - - - -
Add Back O&M - -
Projected Savings (1,955) (12) (1,967) (2,048) (2) (2,050) (1,688) (1,734) (1,781) (1,831) (1,883) (1,936) (1,992) (2,048) (2,107) Total Expenditures 107,856 583 108,439 111,811 93 111,904 115,866 119,994 122,893 125,910 128,458 131,405 133,335 136,024 138,702 Expenditure Assumptions
Personnel - Wages Budget Budget Budget Budget Budget Budget 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% O&M & Capital Outlay Budget Budget Budget Budget Budget Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Debt Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Assumed Expense Savings 2.0% 2.00% 2.00% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Fiscal Year Ending 2026 & 2027
Fiscal Year Ended
City of Redding
General Fund Ten Year Plan (in thousands)
Expenditures
Packet Pg. 744 Attachment: Budget Report Third Quarter FY 2026 (through March 2026) (9.10(b)--Consider the City of

Redding City CouncilMay 19, 2026

Redding City Council
May 19, 2026