Agenda
Regular Meeting
Redding City Council
Council Chambers (Doors open 30 minutes prior)
777 Cypress Avenue, Redding, CA
June 2, 2026
6:00 PM
1. CALL TO ORDER - VICE MAYOR DR. PAUL DHANUKA
A. Pledge of Allegiance
B. Invocation - Jen McCloskey, Redding Police and Fire Departments' Chaplain C. Roll Call
3. PUBLIC COMMENT - for non-agendized matters within the city’s jurisdiction.
4. CONSENT CALENDAR
The Consent Calendar contains items considered routine and/or which have been individually scrutinized by City Council Members and are anticipated to require no further deliberation. If a member of the public wishes to address an item on the Consent Calendar, please enter your name in the electronic kiosk located in the lobby before the Consent Calendar is considered. It shall be the prerogative of any Council Member, before the Consent Calendar is acted upon, to: (1) comment on an item; (2) respond to any public comment on an item; (3) request the record reflect an abstention or nay vote on an item; or (4) remove an item and place it on the Regular portion of the agenda for delivery of a staff report and/or an extended discussion or deliberation.
PURSUANT TO THE BROWN ACT, CITY COUNCIL CANNOT TAKE ACTION ON PUBLIC
COMMENT ITEMS
The City Council will allocate up to a maximum of three minutes per speaker for 30 minutes total, at the beginning of the meeting for Public Comment for non-agendized matters within the City’s jurisdiction.
The Mayor will determine the order of the speakers. If 30 minutes is not adequate to accommodate all of the individuals who have submitted their name through the electronic kiosk, the Council will trail this item to the end of the open session agenda. The remaining speakers will address the City Council at that time.
If anyone wishes to address the City Council on any item considered at this meeting before or during Council’s consideration of that item, please enter your name in the electronic kiosk located in the lobby. The City Council will allocate up to a maximum of three minutes per speaker for each agenda item. Staff reports are available on-line at the City’s web site at www.cityofredding.gov and in the Public View binder located on the podium at the north side of the Chambers.
PLEASE SILENCE YOUR CELL PHONES. THANK YOU.
Redding City Council June 2, 2026
4(a). Approve City Council Minutes: Special Meeting – Closed Session of May 19, 2026; Regular Meeting of May 19, 2026; and Special Meeting – Closed Session of May 26, 2026.
4(b). This is the second reading of the below-noted Uncodified Ordinance introduced at the regularly scheduled City Council Meeting of May 19, 2026:
(1) Adopt Ordinance No. 2693, an uncodified ordinance of the City Council of the City of Redding adopting Redding Police Department Policy No. 707 to provide guidelines for the approval, acquisition and reporting requirements for military equipment for the City of Redding Police Department in accordance with Assembly Bill 481.
4.5(a). Authorize and approve the following actions related to providing Department of Transportation Pipeline and Hazardous Materials Safety Administration Natural Gas Pipeline Compliance Services:
(1) Approve the Fourth Amendment to Contract (C-9686) with EverLine Compliance, LLC, increasing the annual not-to-exceed contract compensation amount by $52,500, from $190,000, to a revised not-toexceed amount of $242,500 each City of Redding fiscal year, with all other terms, conditions and scope of the services remaining unchanged; and
(2) Authorize the City Manager, or designee, to execute the Fourth Amendment and any related documents necessary to complete and implement the amendment.
4.9(a). Approve the successor Memorandum of Understanding (MOU) between the City of Redding and County of Shasta, outlining the respective duties of the City of Redding and County of Shasta as it relates to the Redding Police Department’s Crisis Intervention Response Team.
4.10(a). Approve cancellation of the Public Hearing set for June 16, 2026, at 6:00 p.m., in the City Council Chambers, 777 Cypress Avenue, Redding, California, to consider adjustments to the City of Redding’s Schedule of Fees and Service Charges, as previously approved by the City Council at its meeting on May 19, 2026. This will be rescheduled for a future date.
4.11(a). Authorize and approve the following actions relative to the City of Redding Tarmac Road Storm Drain Emergency Replacement Project (Project):
(1) Accept update regarding the Project; and
(2) Pursuant to Public Contract Code Section 22050(c)(1), make a determination by a four-fifths vote that there is a need to continue the emergency work.
Redding City Council June 2, 2026
4.11(b). Authorize and approve the following actions regarding the Highway Bridge Program (HBP) grant funding from the State of California, Department of Transportation:
(1) Accept additional $248,770 awarded to the City of Redding for the Eastside Road Bridge over Canyon Hollow Project (Project); and (2) Adopt Resolution approving and adopting the 38th Amendment to City Budget Resolution No. 2025-049 appropriating $248,770 of HBP Funds and $32,230 of Traffic Impact Fee Funds for a total of $281,000 for the Project.
4.11(c). Authorize and approve the following actions relative to Bid Schedule No. 5693 (Job No. WAADM23056), Mistletoe Lane and Victor Ave Water Improvements Project:
(1) Award to Giles Excavating & Paving, Inc., in the amount of $1,615,072; (2) Approve an additional $275,000 to cover the cost of administration and inspection fees;
(3) Approve $81,000 for project development costs;
(4) Approve $170,000 to provide construction contingency funding; (5) Authorize the City Manager, or designee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $100,000; and
(6) Find that the Project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 - Existing Facilities.
4.11(d). Authorize and approve the following:
(1) Approve the submittal of one Active Transportation Program grant application to the California Department of Transportation for a total amount not to exceed $18.5 million for infrastructure improvements along:
(a) Victor Avenue from Aspin Avenue to Old Alturas Road, with improvements on Dana Drive, Bradford Way, and Old Alturas Road; and
(2) Authorize the City Manager, or designee, to sign the grant applications and any necessary documents to complete application process.
4.11(e). Authorize and approve the following for the City of Redding Clear Creek Wastewater Treatment Plant:
(1) Authorize the purchase of an Atlas Copco Blower in the amount of $220,719 including all applicable taxes and fees, to replace aging and chronically failing HSI blowers; and
(2) Authorize the City Manager, or designee, to approve future pricing adjustments, and changes in terms, as needed, due to inflation and unstable economic conditions up to a total of $20,000.
Redding City Council June 2, 2026
4.11(f). Authorize and approve the following actions relative to Request for Proposal No. 5676, to provide engineering services for the Storm Drain Master Plan Update (Project):
(1) Award to MCC Engineering, Inc.;
(2) Authorize the Mayor to execute the Consulting and Professional Services Contract with MCC Engineering, Inc. for professional engineering services, including project management, data collection, survey, hydrologic and hydraulic modeling, and updating the Storm Drain Master Plan for a not-to-exceed fee of $539,364.00; and (3) Authorize the City Manager, or designee, to approve contract amendments for scope refinements and/or incorporation of optional tasks included in the Request for Proposal not-to-exceed $300,000.
4.11(g). Authorize and approve the following actions relative to the City of Redding (City) Solid Waste Utility’s Material Recovery Facility (MRF) sort line:
(1) Approve and find that the sole-source purchase and installation of equipment from CP Manufacturing, LLC, is in accordance with Public Contract Code Section 3400 (c)(2) in order to match other products in use by the City;
(2) Authorize the City Manager, or designee, to execute the Goods Purchase and Service Agreement with CP Manufacturing, LLC, in an amount notto-exceed $5,605,793.63; (3) Authorize the City Manager, or designee, to execute the CDTFA-230 Partial Tax Exemption Form;
(4) Authorize the City Engineer, or designee, to approve change orders to the Agreement up to $150,000; and
(5) Find that the project is categorically exempt from environmental review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities.
4.12(a). Authorize and approve the following actions related to the biennial review of Redding Municipal Code Section 2.90 (Conflict of Interest Code):
(1) Give notice to City of Redding (City) departments and agencies that the City’s Conflict of Interest Code is to be reviewed, and revised if necessary, pursuant to Government Code Section 87306.5(a); (2) Direct the City Clerk to advise all City departments and agencies to review the current list of designated positions and disclosure categories to determine if any revisions are necessary and to provide said revisions to the City Clerk by July 31, 2026; and
(3) Direct the City Clerk to prepare and present to the City Council for adoption any necessary revisions to the City’s Conflict of Interest Code within 90 days of receiving notification that revisions are necessary and, if no revisions are necessary, the City Clerk shall so advise the City Council.
Redding City Council June 2, 2026
4.12(b). Approve and adopt the following resolutions relative to the City of Redding’s General Municipal Election to be held on Tuesday, November 3, 2026:
(1) Resolution adopting standards for candidates relative to nomination period, candidate statement preparation and cost, as well as ballot designation; and
(2) Resolution requesting that the Board of Supervisors of the County of Shasta consolidate the General Municipal Election with the Statewide General Election.
RECOMMENDATION: ACCEPT, ACKNOWLEDGE, ADOPT, APPROVE,
AND/OR AUTHORIZE ALL ITEMS ON THE CONSENT CALENDAR.
9. REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,
BOARDS, COMMISSIONS AND COMMITTEES
Electric Utility
9.5(b). Consider authorization of issuance of Electric System Refunding Revenue Bonds Series 2026 to refund the remaining Redding Joint Powers Financing Authority, Electric System Revenue Bonds, 2015 Series A.
Recommendation:
Adopt Resolution relative to City of Redding’s Electric System Refunding Revenue Bonds to:
(1) Authorize the issuance of Electric System Refunding Revenue Bonds, Series 2026, in an amount not-to-exceed $28 million for the purpose of refunding the outstanding Electric System Revenue Bonds, 2015 Series A; (2) Authorize the City Manager, or designee, to execute and deliver an Indenture, a Purchase Contract and a Continuing Disclosure Agreement; (3) Approve the form of the Preliminary Official Statement; and (4) Authorize the City Manager, or designee, to execute any and all documents and taking of all necessary actions related to the financing.
City Clerk
9.12(c). Consider report regarding impacts of Senate Bill (SB) 707 regarding updates to the Ralph M. Brown Act effective July 1, 2026.
Recommendation:
Authorize and approve the following:
(1) Accept an informational report regarding the impacts of SB 707 (Open Meetings: meeting and teleconferencing requirements) relating to the Ralph M. Brown Act, Government Code section 54952.2, et. seq.; and (2) Adopt Resolution creating City Council Policy No. 223 - Technology Disruption Policy, pursuant to requirements of SB 707, Government Code Section 54953.4.(b)(1)(A)(i)(I)(ia).
Redding City Council June 2, 2026
11. COUNCIL TRAVEL REPORT(S)
City Council Member attendance at conference/meetings reimbursed at City expense. {Requirement of Assembly Bill 1234}
Information Only
12. SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS
FOR FUTURE CITY COUNCIL MEETINGS
13. ADJOURNMENT
Pursuant to the Brown Act, non-confidential materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for inspection during normal business hours at the Office of the City Clerk, 3rd Floor, City Hall, 777 Cypress Avenue, Redding, California.
City Council Meetings will be televised live on Shasta Community Access Channels via Charter/Spectrum Cable channel 181, and will be rerun on Thursday at 12:30 p.m. during the week in which the meeting is held. Additionally, the meeting can be viewed online at the following: https://www.shastaartscouncil.org/scactv; and the City’s YouTube Channel https://www.youtube.com/cityofredding. Video of the City Council meetings can also be viewed on the City’s web site at https://www.cityofredding.gov/. Open the Services tab, and select City Council Videos.
In compliance with Title II of the Americans with Disabilities Act, the City of Redding will make available to persons with disabilities modifications or accommodations including auxiliary aids or services necessary to participate in public meetings. A person needing assistance should contact the Redding City Clerk by telephone at (530) 225-4447 or in person, or by mail at 777 Cypress Avenue, 3rd Floor, Redding, California 96001 at least three (3) working days in advance.
The City of Redding will ensure that no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination under any of its projects, activities, services, or business opportunities on the basis of race, color, national origin, age, sex, or disability, as afforded by Title VI of the Civil Rights Act of 1964 and related statutes as amended. All persons, regardless of their citizenship status, are covered under this regulation.
Questions, complaints, or requests for accommodations or additional information may be forwarded to the ADA & Title VI Coordinator at 777 Cypress Avenue, Attn: Personnel Dept., Redding, California 96001, Phone (530) 225-4065.
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve City Council Minutes: Special Meeting – Closed Session of May 19, 2026; Regular Meeting of May 19, 2026; and Special Meeting – Closed Session of May 26, 2026.
Attachments
Unofficial Minutes - Special Meeting - Closed Session of May 19, 2026 Unofficial Minutes - Regular Meeting of May 19, 2026
Unofficial Minutes - Special Meeting - Closed Session of May 26, 2026 MEETING DATE: June 2, 2026
ITEM NO. 4(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4(a)--Approve City Council Minutes
Sharlene Tipton, City Clerk
Packet Pg. 7
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05/19/2026
Unofficial Minutes Redding City Council, Special Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
May 19, 2026, 4:45 PM
The meeting was called to order by Mayor Mike Littau with the following Council Members present: Tenessa Audette, Dr. Paul Dhanuka, Jack Munns, and Erin Resner.
Also present: Interim City Attorney Mary Anne Wagner, City Manager William Tarbox, Assistant City Manager/Public Works Director Michael Webb, City Clerk Sharlene Tipton, and Executive Assistant II Erin Barnhart.
PUBLIC COMMENT
Mayor Littau announced that no one present wished to speak regarding the following Closed Session items.
CLOSED SESSION
At the hour of 4:45 p.m., Mayor Littau announced that the Council would adjourn to Closed Session.
At the hour of 6:01 p.m., Mayor Littau reconvened the Closed Session to Open Session and reported that in reference to:
3A. Closed Session pursuant to California Government Code Section 54956.9(d)(1):
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
River Ranch Neighborhood Association v. City of Redding; Shasta County Superior Court Case No. 26CV-210023
Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.
3B. Closed Session pursuant to California Government Code Section 54956.9(d)(1):
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
W. Jaxon Baker v. City of Redding; Shasta County Superior Court Case No. 26CV-209640 Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.
3C. Closed Session pursuant to California Government Code Section 54956.8:
CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property Location: 700 Auditorium Drive, Assessor’s Parcel No. 102-020-026 Agency Negotiator: Assistant City Manager Michael Webb
Negotiating Parties: Advance Redding, Inc.
Under Negotiation: Price and Terms
Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.
Packet Pg. 8
Attachment: Unofficial Minutes - Special Meeting - Closed Session of May 19, 2026 (4(a)--Approve City Council Minutes) 208
05/19/2026
3D. Closed Session pursuant to California Government Code Section 54957.6:
CONFERENCE WITH LABOR NEGOTIATOR
Designated Agency Representative: Personnel Director Kari Kibler Employee Organizations:
(1) Redding Independent Employees’ Organization - Clerical, Technical and Professional Unit;
(2) Redding Independent Employees’ Organization - Supervisory & Confidential Unit; (3) United Public Employees of California Local 792 – Technical Employees Unit; (4) International Brotherhood of Electrical Workers 1245 AFL-CIO – Power Production;
(5) International Brotherhood of Electrical Workers 1245 AFL-CIO – Electric Department; and
(6) International Brotherhood of Electrical Workers 1245 AFL-CIO – Maintenance Employees
Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.
ADJOURNMENT
There being no further business at the hour of 6:06 p.m., Mayor Littau declared the meeting adjourned.
APPROVED:
______________________________
Mike Littau, Mayor
ATTEST:
___________________________
Sharlene Tipton, City Clerk
Packet Pg. 9
Attachment: Unofficial Minutes - Special Meeting - Closed Session of May 19, 2026 (4(a)--Approve City Council Minutes) 209
05/19/2026
Unofficial Minutes Redding City Council, Regular Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
May 19, 2026, 6:00 PM
The meeting was called to order at 6:08 p.m. by Mayor Mike Littau with the following Council Members present: Tenessa Audette, Dr. Paul Dhanuka, Jack Munns, and Erin Resner.
Also present: Interim City Attorney Mary Anne Wagner, City Manager William Tarbox, Assistant City Manager/Public Works Director Michael Webb, City Clerk Sharlene Tipton, and Executive Assistant II Erin Barnhart.
The Pledge of Allegiance was led by Mayor Littau.
The Invocation was provided by Lori Moretti, Redding Police and Fire Departments’ Chaplain.
PRESENTATION
2A. Mayor’s Proclamation presented to Mayor Littau honoring the 250th birthday of the United States of America. The Mayor invited all residents and businesses in the community to display the flag of the United States of America from May 22, 2026, to July 12, 2026, as a symbol of national pride and unity, and provided small flags to all meeting attendees.
The City Council took no formal action on this informational item.
PUBLIC COMMENT
Christina Prosperi, President of the Redding Parks Foundation, provided a brief overview of the Foundation’s mission and ongoing work. She encouraged community members to participate in its new fundraiser, Race for Redding, which leverages the Ironman 70.3 “Your Journey, Your Cause” platform to support local parks and recreation initiatives.
Robert Sid reminded the community to vote on June 2, 2026, for the California primary election.
Leslie Sawyer suggested that the Council explore more effective ways to utilize its Transient Occupancy Tax revenues and extended a welcome to the new City Manager.
CONSENT CALENDAR
The following matters were considered inclusively under the Consent Calendar and each Report to City Council (staff report) is incorporated herein by reference:
4(a). Approve City Council Minutes: Special Meeting – Closed Session of May 5, 2026; and Regular Meeting of May 5, 2026.
4(b). Accept City of Redding Accounts Payable Register No. 10; and Payroll Register Nos. 20, 21 and 22.
4(c). Accept City of Redding Proof of Cash and Cash by Fund reports for the month of March 2026.
4(d). Accept the City of Redding Treasurer’s Report for March 2026. 4(e). This is the second reading of the Ordinance introduced at the regularly scheduled City Council Meeting of May 5, 2026: (1) adopt Ordinance No. 2690, an ordinance of the City of Redding adopting an amendment to the City of Redding Zoning Map relating to the rezoning of the Churn Creek Commons Subdivision (Assessor’s Parcel No. 068-300-023) consisting of 1.65 acres located at 4363 Churn Creek Road in the City of Redding (RZ2024-00795).
Packet Pg. 10
Attachment: Unofficial Minutes - Regular Meeting of May 19, 2026 (4(a)--Approve City Council Minutes) 210
05/19/2026
4(f). This is the second reading of the below-noted Ordinance introduced at the regularly scheduled City Council Meeting of May 5, 2026: (1) adopt Ordinance No. 2691, an ordinance of the City Council of the City of Redding, amending Redding Municipal Code Title 9 (Health and Safety), Chapter 9.20 (Fire Code) by amending Sections 9.20.010 (Adoption), 9.20.020 (Title), 9.20.030 (Supplemental Rules, Regulations, and Standards),
9.20.040 (Fire Prevention Division), 9.20.050 (Self-Inspection), 9.20.060 (Appeals),
9.20.070 (Violation Penalties), 9.20.080 (Enforcement – Citation Authority), 9.20.100 (Open Burning, Recreational Fires, and Outdoor Fireplaces), 9.20.110 (Fire Apparatus Access Roads), 9.20.120 (Premises Identification), 9.20.130 (Fire Hydrants), 9.20.140 (Fire Protection Systems), 9.20.150 (Existing Buildings), 9.20.160 (High-Piled Combustible Storage), 9.20.170 (Fire Safety During Construction and Demolition),
9.20.180 (Regulations for Fireworks), 9.20.190 (Very High Severity Zone Designation and Construction Standard), 9.20.195 (Flammable and Combustible Liquid Storage), 9.20.200 (Referenced Standards), 9.20.210 (Appendix B – Fire Flow Requirements for Buildings),
9.20.220 (Appendix C – Footnote Additions), and 9.20.230 (Appendix D). 4(g). This is the second reading of the below-noted Ordinance introduced at the regularly scheduled City Council Meeting of May 5, 2026: (1) adopt Ordinance No. 2692, an ordinance of the City Council of the City of Redding (City) amending Redding Municipal Code Title 14 (Utilities), Chapter 14.09 (Water Shortage Contingency Plan) by amending Sections 14.09.030 (Definitions), 14.09.040 (Water Shortage Stages), and 14.09.050 (Water Conservation/Water Shortage Emergency Response Stages) for the purpose of conservation of water and to conform the City’s water management and conservation efforts with regulations adopted by the State of California.
4.5(a). Authorize and approve the following: (1) approve the execution of a Memorandum of Understanding (MOU) with Western Area Power Administration and Redding Electric Utility to provide electric service to the Wintu Pumping Plant operated by Bella Vista Water District; and (2) authorize the City Manager, or designee, to execute a future longterm contract that would define scheduling, delivery, accounting, settlement, billing, and operational protocols, along with and any related documents necessary to implement the MOU.
4.6(a). Authorize and approve the following actions: (1) approve the Authorization of Service #26- 03 with Mead & Hunt, Inc. (C-8976) for airport engineering consulting services related to the Benton Field Eastside T-Hangar Taxilane Pavement Reconstruction & Drainage Improvement Project in the amount of $376,162.00; and (2) authorize the Mayor to execute the contract and any future amendments necessary to complete the project.
4.8(a). Approve and authorize the following for the City of Redding Fire Department: (1) approve the standardization and sole-source of Self-Contained Breathing Apparatus (SCBA) products and associated equipment to 3M Scott; (2) authorize the Purchasing Officer, or designee, to execute a Purchase Order for SCBAs and associated equipment with Allstar Fire Equipment for a total not-to-exceed amount of $966,278.23; and (3) adopt Resolution No. 2026-034, a resolution of the City Council of the City of Redding, approving and adopting the 35th Amendment to City Budget Resolution No. 2025-049 appropriating $966,280 for the purchase of SCBAs for the Redding Fire Department for fiscal year 2025-
26. 4.9(a). Authorize and approve the following: (1) ratify the submission of an application for the U.S. Department of Justice 2025 Edward Byrne Memorial Justice Assistance Grant in the amount of $42,867 to fund the purchase of four handheld radios; (2) authorize the City Manager to accept and appropriate the grant, if awarded; and (3) authorize the City Manager, or designee, to sign the grant application's Certifications and Assurances signifying that the governing body was notified of the application and citizens were provided the opportunity to comment on the application.
4.9(b). Authorize the Redding Police Department to purchase radio equipment from Motorola in an amount not-to-exceed $219,000 for Fiscal Year 2025-26 based upon the authorization for sole-source purchasing of Motorola radio equipment for the Redding Electric Utility Wildfire Mitigation Plan Technology Solutions Program, approved by City Council at the September 15, 2020, meeting.
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05/19/2026
4.10(a).Approve setting a Public Hearing on June 16, 2026, at 6:00 p.m., in the City Council Chambers, 777 Cypress Avenue, Redding, California, to consider adjustments to the City of Redding’s Schedule of Fees and Service Charges (Schedule).
Council Member Audette asked Development Services Director Jeremy Pagan to notify the developer stakeholder group of the proposed changes included in the Schedule.
4.11(a).Authorize and approve the following actions relative to the City of Redding Tarmac Road Storm Drain Emergency Replacement Project (Project): (1) accept update regarding the Project; and (2) pursuant to Public Contract Code Section 22050(c)(1), make a determination by a four-fifths vote that there is a need to continue the emergency work.
4.11(b).Adopt Resolution No. 2026-035, a resolution of the City Council of the City of Redding, accepting the City of Redding’s List of Projects for Fiscal Year 2026-27 funded by Senate Bill 1: The Road Repair and Accountability Act of 2017.
4.11(c).Accept Bid Negotiation No. 5606, Replace AC Surfacing 2025 Project, awarded to J.F.
Shea Construction, Inc., as satisfactorily complete, with a final cost of $2,098,108.44.
4.11(d).Authorize and approve the following actions relative to Bid Schedule (BS) No. 5685, Testing and Repair of Backflow Prevention Assemblies: (1) award BS No. 5685 to the lowest bidder, Chris Jaeger Construction & Testing, at a total annual cost of $288,250; (2) if mutually agreeable, with all unit prices, terms, and conditions remaining the same, authorize the Purchasing Officer to extend the contract annually for two additional oneyear periods, through June 30, 2029; (3) authorize the City Manager, or designee, to approve contract amendments up to $40,000 annually to cover unanticipated additional repair costs and additional units added through development; and (4) find the action categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 - Existing Facilities.
4.11(e).Authorize and approve the following: (1) adopt Resolution No. 2026-036, a resolution of the City Council of the City of Redding, amending the Local Road Safety Plan; (2) Find that the Local Road Safety Plan amendment is statutorily exempt from environmental review under the California Environmental Quality Act, pursuant to Section 15262 – Feasibility and Planning Studies; and (3) authorize staff to submit a United States Department of Transportation Safe Streets and Roads for All Program application in an amount not-to-exceed $15 million for the design and construction of a roundabout and related curve-safety improvements at the intersection of Churn Creek Road, Victor Avenue, and Rancho Road.
4.11(f).Accept Bid Negotiation No. 5508, Construction on State Highway in Redding on Route 273 from Yuba Street to Tehama Street and on California Street from Tehama Street to Eureka Way, awarded to S.T. Rhoades Inc., as satisfactorily complete, with a final cost of $4,095,796.90.
4.15(a).Adopt Resolution No. 2026-037, a resolution of the City Council of the City of Redding, effective May 19, 2026, updating the City of Redding Master Employee Salary Schedule classification titles and pay rates/ranges to comply with the California Public Employees’ Retirement System requirement that all information be consolidated in one master document.
A MOTION WAS MADE by Council Member Audette, seconded by Council Member Resner, that the foregoing items on the Consent Calendar be accepted, acknowledged, adopted, approved, ratified, and/or authorized as recommended.
The Vote:
AYES: Council Members – Audette, Dr. Dhanuka, Munns, Resner, and Littau NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Resolution Nos. 2026-034 through 2026-037 and Ordinance Nos. 2690 through 2692 are on file in the Office of the City Clerk.
Packet Pg. 12
Attachment: Unofficial Minutes - Regular Meeting of May 19, 2026 (4(a)--Approve City Council Minutes) 212
05/19/2026
APPOINTMENTS
5.1. Council Member appointments to the City of Redding Audit and Financial Advisory Committees.
Mayor Littau provided a brief overview of the Report to the City Council (staff report), incorporated herein by reference.
Robert Sid opined the importance of being diligent and mindful regarding qualifications and experience when making appointments to various Boards and Committees.
Mayor Littau noted that an updated Agenda and staff report were published on Friday, May 15, 2026, regarding an update to his appointment to the Audit Committee.
A discussion amongst the Council ensued.
A MOTION WAS MADE by Council Member Audette, seconded by Council Member Munns, to: (1) approve the following to the Audit Committee: (a) Mayor Littau’s appointment of one non-voting member, Ken Freigher, for a two-year term to November 30, 2028; (b) Vice Mayor Dhanuka’s appointment of one non-voting member in 2026, Dale Ball, for a one-year term to November 30, 2027; and (2) approve the following to the Financial Advisory Committee: (a) Mayor Littau’s two Council Member appointments of himself and Council Member Audette; (b) Council Member-sponsored appointments:
(c) Mayor Littau – Jason Richart, for a three-year term to November 30, 2029; (d) Vice Mayor Dr. Dhanuka – Michael Quinn, for a three-year term to November 30, 2029; (e) Mayor Pro Tempore Resner – Bruce Dean, for a one-year term to November 30, 2027; (f) Council Member Audette – Dennice Maxwell, for a one-year term to November 30, 2027; and (g) Council Member Munns – Kurt Swanson, for a one-year term to November 30, 2027. The Vote: Unanimous Ayes.
REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,
BOARDS, COMMISSIONS AND COMMITTEES
9.5(b). Redding Electric Utility's Quarterly Financial Report and Industry Activities Update.
Assistant Director of Electric Utility Joseph Bowers highlighted the Report to the City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.
A discussion amongst the Council ensued.
A MOTION WAS MADE by Council Member Resner, seconded by Council Member Dhanuka, to accept the City of Redding Electric Utility’s Fiscal Year 2025-26 Third Quarter Financial Report and Industry Activities Update. The Vote: Unanimous Ayes.
9.6(b). Provide $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.
Community Services Director Travis Menne highlighted the Report to the City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.
Director Menne noted that the Council will need to provide consensus on several decision points as noted in the staff report.
Todd Jones, Chief Executive Officer for Redding Chamber of Commerce/Visit Redding, spoke in support of keeping the Civic Auditorium open, and opined the need for a longterm plan.
Leslie Sawyer shared two examples of what she considered missteps taken by Advance Redding.
Packet Pg. 13
Attachment: Unofficial Minutes - Regular Meeting of May 19, 2026 (4(a)--Approve City Council Minutes) 213
05/19/2026
Michael Quinn stated that after reviewing Advance Redding’s financial information, he opined that the issue is expenses for concerts outweighed the incoming revenue and suggested that whoever is awarded the RFP should open it up to the public to provide paid events.
Jay Dunlap opined that the short timeline for an RFP to be released and an operator to be found and/or have the City of Redding operate it, is not realistic.
Paul Saulsbury encouraged continued exploration of partnerships, sponsorships, private investment, regional collaboration or alternative operational models that could preserve the Civic Auditorium without placing additional long-term strain on taxpayers.
A discussion amongst the Council ensued.
A MOTION WAS MADE by Council Member Resner, seconded by Council Member Munns, to approve the terms of the Request for Proposal as proposed in the staff report for the Civic Auditorium Lease located at 700 Auditorium Drive, with the inclusion of: (1) the IronMan 70.3 in Special Events; (2) a detailed inventory of City-owned assets; and (3) requirement of a statement of finances to ensure a potential operator can fund the business without the City of Redding. The Vote: Unanimous Ayes.
9.9(c). Redding Police Department Military Equipment Report; and Uncodified Ordinance to provide guidelines regarding military equipment pursuant to Assembly Bill 481.
Police Captain Chris Smyrnos highlighted the Report to the City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.
A discussion amongst the Council ensued.
A MOTION WAS MADE by Council Member Resner, seconded by Council Member Munns, to: (1) accept the Redding Police Department Military Equipment Report; (2) introduce Uncodified Ordinance No. 2693 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.
The Vote:
AYES: Council Members – Audette, Dr. Dhanuka, Munns, Resner, and Littau NOES: Council Members – None
ABSTAIN: Council Members – None
ABSENT: Council Members – None
Council Member Munns left the Chambers at 7:41 p.m., and returned at 7:43 p.m.
9.10(b).City of Redding (City) General Fund Quarterly Financial Report for the quarter ended March 2026.
Director of Finance/City Treasurer Greg Robinett highlighted the Report to the City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.
A discussion amongst the Council ensued.
A MOTION WAS MADE by Council Member Audette, seconded by Council Member Resner, to accept the City’s General Fund Quarterly Financial Report for the quarter ended March 31, 2026. The Vote: Unanimous Ayes.
SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS FOR
FUTURE CITY COUNCIL MEETINGS
At Council Member Tenessa Audette’s suggestion, a consensus of the Council directed staff to reinstate the Investment Advisory Committee and provide Council with a presentation at a future Council meeting.
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Attachment: Unofficial Minutes - Regular Meeting of May 19, 2026 (4(a)--Approve City Council Minutes) 214
05/19/2026
At Mayor Pro Tempore Erin Resner’s suggestion, a consensus of the Council directed staff to return to Council at a future meeting with an update regarding the opioid settlements.
ADJOURNMENT
There being no further business at the hour of 8:19 p.m., Mayor Littau declared the meeting adjourned.
APPROVED:
___________________________
Mike Littau, Mayor
ATTEST:
____________________________
Sharlene Tipton, City Clerk
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Attachment: Unofficial Minutes - Regular Meeting of May 19, 2026 (4(a)--Approve City Council Minutes) 207
05/26/2026
Unofficial Minutes Redding City Council, Special Meeting Caldwell Park Conference Room
Second Floor
777 Cypress Avenue
Redding, CA 96001
May 26, 2026, 3:00 PM
The meeting was called to order at 3:05 p.m. by Mayor Mike Littau with the following Council Members present: Tenessa Audette, Dr. Paul Dhanuka, and Jack Munns. Council Member Erin Resner arrived at 3:30 p.m.
Also present: Interim City Attorney Benjamin L. Stock, City Manager William Tarbox, Personnel Director Kari Kibler, and City Clerk Sharlene Tipton.
PUBLIC COMMENT
Mayor Littau announced that no one present wished to speak regarding the following Closed Session item.
CLOSED SESSION
At the hour of 3:06 p.m., Mayor Littau announced that the Council would adjourn to Closed Session.
At the hour of 8:36 p.m., Mayor Littau reconvened the Closed Session to Open Session and reported that in reference to:
3A. Closed Session pursuant to California Government Code Section 54957(b):
PUBLIC EMPLOYMENT
City Attorney - Recruitment
Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.
ADJOURNMENT
There being no further business at the hour of 8:37 p.m., Mayor Littau declared the meeting adjourned.
APPROVED:
______________________________
Mike Littau, Mayor
ATTEST:
___________________________
Sharlene Tipton, City Clerk
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Attachment: Unofficial Minutes - Special Meeting - Closed Session of May 26, 2026 (4(a)--Approve City Council Minutes)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
This is the second reading of the below-noted Uncodified Ordinance introduced at the regularly scheduled City Council Meeting of May 19, 2026:
(1) Adopt Ordinance No. 2693, an uncodified ordinance of the City Council of the City of Redding adopting Redding Police Department Policy No. 707 to provide guidelines for the approval, acquisition and reporting requirements for military equipment for the City of Redding Police Department in accordance with Assembly Bill 481.
Attachments
Uncodified Ordinance 2693 - Military Equipment
MEETING DATE: June 2, 2026
ITEM NO. 4(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4(b)--Adopt uncodified Ordinance No. 2693
Sharlene Tipton, City Clerk
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2 SECOND READING
ORDINANCE NO. 2693
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) of Packet Pg. 18
Attachment: Uncodified Ordinance 2693 - Military Equipment (4(b)--Adopt Uncodified Ordinance No.2693 - Military Equipment) 3 SECOND READING
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.
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Attachment: Uncodified Ordinance 2693 - Military Equipment (4(b)--Adopt Uncodified Ordinance No.2693 - Military Equipment) 4 SECOND READING
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
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Attachment: Uncodified Ordinance 2693 - Military Equipment (4(b)--Adopt Uncodified Ordinance No.2693 - Military Equipment)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions related to providing Department of Transportation Pipeline and Hazardous Materials Safety Administration Natural Gas Pipeline Compliance Services:
(1) Approve the Fourth Amendment to Contract (C-9686) with EverLine Compliance, LLC, increasing the annual not-to-exceed contract compensation amount by $52,500, from $190,000, to a revised not-to-exceed amount of $242,500 each City of Redding fiscal year, with all other terms, conditions and scope of the services remaining unchanged; and (2) Authorize the City Manager, or designee, to execute the Fourth Amendment and any related documents necessary to complete and implement the amendment.
Fiscal Impact
The contract term extends through December 31, 2027. If approved, annual expenditures under the contract will not exceed $242,500 per fiscal year. Funding for these services is included within the existing Operating and Maintenance (O&M) budget for routine pipeline maintenance activities. The adopted budget for this line item is $272,500 in Fiscal Year (FY) 2025-26 and $254,600 in FY 2026-27, which is anticipated to be sufficient to support the contract without requiring additional appropriations.
Alternative Action
The Council could decline to approve the Fourth Amendment and provide alternative direction.
MEETING DATE: June 2, 2026
ITEM NO. 4.5(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.5(a)-- Amend Contract No. 9686 for Natural Gas Pipeline Compliance Nick Zettel, Director of
Redding Electric Utility
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Report to Redding City Council May 28, 2026
Re: 4.5(a)--Amend Contract No. 9686 for Natural Gas Pipeline Compliance Page 2 Background/Analysis
The City of Redding (City) owns and operates approximately three miles of 10-inch-diameter natural gas pipeline that supplies fuel to the Redding Power Plant’s generation units. This pipeline is regulated by the Pipeline and Hazardous Materials Safety Administration of the United States Department of Transportation.
On May 25, 2022, the City issued Request for Proposals No. 5301 for gas pipeline compliance services. EverLine Compliance, LLC was the sole respondent. Following the City’s standard procurement and contracting procedures, the City entered into a five-year agreement (Contract C-9686) with EverLine Compliance, LLC for pipeline maintenance and compliance services.
The agreement expires December 31, 2027, and has an annual not-to-exceed contract compensation amount of $190,000 per fiscal year (July-June), which covers monthly field services and control room monitoring fees as well as additional items billed at as-quoted or timeand-materials (T&M) rates.
The original contract established was within the City Manager’s authority to execute and approve as it was below the $200,000 per contract/fiscal year threshold requiring City Council approval; the proposed amendment exceeds that threshold and therefore requires Council approval.
As the pipeline owner, the City is responsible for ensuring excavation standby services are provided, to satisfy regulatory damage prevention requirements and protect the pipeline. As part of the contract with the City, EverLine provides these required standby personnel at T&M rates.
The timing and frequency of excavation activities are generally unpredictable and outside the City’s control.
The contract includes an annual three percent fee escalation for base monthly services, which reduces the amount of contract authority available for T&M work and standby services. As shown in the table below, base service costs consume the majority of the current $190,000 annual contract compensation limit, leaving only a small remainder for all other work. While those remaining amounts are expected to cover routine T&M maintenance, they do not provide sufficient capacity for unpredictable excavation standby services.
Base Services T&M / Standby
FY 2025-26 (Jul 2025 – Jun 2026) $174,000 $16,000
FY 2026-27 (Jul 2026 – Jun 2027) $179,000 $11,000
FY 2027 Partial (Jul – Dec 2027) $92,000 $3,000
Redding Rancheria’s Clear Creek Road Improvement project (part of the new Tribal Health Village development) is estimated to begin in June 2026 and run for approximately 10 weeks.
The project presents a specific, near-term standby obligation, though not all phases of the project are expected to trigger the standby requirement. Based on initial project timelines, staff anticipates no more than seven weeks of standby coverage will be needed.
To maintain uninterrupted standby services for unanticipated excavation activities and cover the standby obligation for the Clear Creek Road Improvement project, staff recommends approving a contract amendment to increase the annual not-to-exceed contract compensation amount of EverLine’s contract by $52,500 (from $190,000 up to $242,500 per fiscal year). This increase is Packet Pg. 22
Report to Redding City Council May 28, 2026
Re: 4.5(a)--Amend Contract No. 9686 for Natural Gas Pipeline Compliance Page 3 equivalent to approximately seven weeks of standby services based on contracted T&M rates (approximately $7,500 per week).
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
C-9686- Fourth Amendment 2026 EverLine Compliance, LLC [Consultant Signed] C-9686 - Consulting & Professional Svcs Contract - 2023 - EverLine Compliance CA, LLC C-9686 - First Amendment - 2023 - EverLine Compliance CA, LLC C-9686 - Second Amendment - 2024 - EverLine Compliance, LLC C-9686 - Third Amendment - 2024 - EverLine Compliance, LLC Packet Pg. 23
FOURTH AMENDMENT
CONSULTING AND PROFESSIONAL SERVICES CONTRACT (C-9686)
This Fourth Amendment is entered into between the City of Redding (“City”), a municipal corporation and EverLine Compliance, LLC, a Delaware limited liability company (“Consultant”), collectively the “Parties”, individually a “Party” for the purpose to amend the Consulting and Professional Services Contract (C-9686) dated January 19, 2023, amended on August 15, 2023, and on June 13, 2024, and on August 5, 2024 (collectively referred to herein as the “Contract”).
RECITALS
WHEREAS, the Parties have previously entered into the Contract for the purpose of U.S.
Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) natural gas pipeline compliance;
WHEREAS, the Parties desire to increase the not-to-exceed annual compensation limit, WHEREAS, on ____________________, the City Council approved this Fourth Amendment, including the increased annual compensation limit under the Contract, NOW, THEREFORE, in consideration of the Recitals stated above and the terms set forth in this Fourth Amendment, the Parties agree that the Contract is amended and supplemented as follows:
I. Section 2.A of the Contract is hereby amended and replaced in its entirety to read as follows:
SECTION 2 (A). City shall pay Consultant for services performed under the Contract in accordance with Exhibit B. The total compensation payable by City to Consultant shall not exceed two hundred forty-two thousand five hundred dollars ($242,500) within City’s fiscal year, defined as the twelve-month period beginning July 1 and ending the following June 30, during the remaining term of the Contract. This annual compensation limit applies to services performed during the applicable City fiscal year, regardless of invoice date or payment date. The annual compensation limit includes all fees, labor, travel, lodging, incidental expenses, reimbursable costs, and any other amounts payable to Consultant under the Contract. Consultant shall not perform, and City shall have no obligation to pay for, services exceeding the applicable annual compensation limit unless authorized by written amendment or other written authorization approved in accordance with applicable City requirements.
II. Except as expressly set forth herein, all of the terms and conditions of the Contract (C-9686) dated January 19, 2023, shall remain in full force and effect.
III. In the event of a conflict or inconsistency between the Contract and this Fourth Amendment, this Fourth Amendment shall control, but only to the extent of the conflict and only with respect to the provisions expressly amended herein.
IV. Effective date of this Fourth Amendment shall be the date it is signed by the City. [Signature Page Follows.]
Packet Pg. 24
Attachment: C-9686- Fourth Amendment 2026 EverLine Compliance, LLC [Consultant Signed] (4.5(a)--Amend Contract No. 9686 for Natural Gas
IN WITNESS WHEREOF, City and Consultant have executed this amendment on the days and year set forth below:
CITY OF REDDING,
A Municipal Corporation
Dated: , 2026
By: City Manager (or delegate)
ATTEST: APPROVED AS TO FORM:
City Attorney
Sharlene Tipton, City Clerk By: Benjamin L. Stock, Interim City Attorney
CONSULTANT
EverLine Compliance, LLC
Dated: ______________, 2026 ___________________________________ By: Trent Ackhurst, VP of Compliance and IM
Tax ID No: 82-1794046
DIR PWCR: 2000002384
DIR Project: 20240394534
➢ Fourth Amendment Contains No Exhibits or Attachments. This Amendment does not include or incorporate any exhibits or attachments. All exhibits and attachments referenced in the original Agreement and prior Amendments shall remain unchanged and in full force and effect.
May 12th
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Attachment: C-9686 - First Amendment - 2023 - EverLine Compliance CA, LLC (4.5(a)--Amend Contract No. 9686 for Natural Gas Pipeline Packet Pg. 60
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Attachment: C-9686 - Second Amendment - 2024 - EverLine Compliance, LLC (4.5(a)--Amend Contract No. 9686 for Natural Gas Pipeline Packet Pg. 66
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Attachment: C-9686 - Third Amendment - 2024 - EverLine Compliance, LLC (4.5(a)--Amend Contract No. 9686 for Natural Gas Pipeline Packet Pg. 70
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Attachment: C-9686 - Third Amendment - 2024 - EverLine Compliance, LLC (4.5(a)--Amend Contract No. 9686 for Natural Gas Pipeline
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve the successor Memorandum of Understanding (MOU) between the City of Redding and County of Shasta, outlining the respective duties of the City of Redding and County of Shasta as it relates to the Redding Police Department’s Crisis Intervention Response Team.
Fiscal Impact
There are no direct costs associated with this agreement.
Two Crisis Intervention Response Team (CIRT) officers are currently funded 15 percent out of the general fund and 85 percent through a mixture of opioid and housing grant funds. The Mental Health Clinician assigned to the CIRT program is funded by Shasta County.
Alternative Action
The City Council (Council) could decline to approve this successor Memorandum of Understanding (MOU). Shasta County would no longer provide a Mental Health Clinician to work with the Redding Police Department’s Crisis Intervention Response Team (CIRT).
Background/Analysis
The Redding Police Department’s CIRT was first established in September 2021 and currently consists of two Redding Police Department officers and one Mental Health Clinician provided by Shasta County. Staff assigned to the CIRT program drive an unmarked vehicle and do not wear traditional police uniforms. CIRT members assist patrol officers by responding to calls for service regarding people suffering from acute mental health episodes. CIRT members have established relationships with several community-based organizations that provide services to people suffering from mental health conditions and homelessness. CIRT members are able to conduct more involved follow-up than traditional patrol officers to help ensure people receive MEETING DATE: June 2, 2026
ITEM NO. 4.9(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.9(a)--Consider the Memorandum of Understanding between the City of Redding and County of Shasta regarding the Crisis Intervention Response Team Brian Barner, Chief of Police
Packet Pg. 73
Report to Redding City Council May 26, 2026
Re: 4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team Page 2
proper long-term care for their mental health and housing needs. CIRT members also work with our community’s homeless population to connect them to appropriate government and community-based resources.
A successor three-year MOU between the City of Redding and Shasta County was entered into on May 16, 2023. This MOU covered the respective duties of the City of Redding and Shasta County as it relates to the CIRT program, along with the related indemnification clauses. This MOU has expired and the MOU being presented in this staff report will allow the Redding Police Department to continue to partner with Shasta County on the CIRT program.
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”.
Attachments
CIRT MOU - 2023
Previous Staff Report - April 6, 2021
Previous Staff Report - December 20, 2022
Mobile Crisis MOU - Final
Packet Pg. 74
DocuSign Envelope ID: 8F39C808- D172- 46CC- 9738- BEAE4F7C9EFA
MEMORANDUM OF UNDERSTANDING
BETWEEN THE COUNTY OF SHASTA AND
CITY OF REDDING
This Memorandum of Understanding ( MOU or agreement) is entered into between the County of Shasta(" County"), through its Health and Human Services Agency, Behavioral Health and Social Services Branch (" HHSA") a political subdivision of the State of California, and City of Redding, a municipal corporation (" City"), ( collectively, the " Parties" and individually a Party") for participation in a Mobile Crisis Intervention Response Team ( M-CIRT) pilot project whose purpose is to improve responses to residents in mental health crises and proactively identify and engage such residents to reduce fatal encounters, which may include using a means to harm themselves or others ( e. g. weapons), or law enforcement officers.
NOW, THEREFORE, in consideration ofthe provisions ofthis agreement, both City and County agree as follows:
Section 1. DEFINITIONS.
A. Mobile Crisis Intervention Team (" Team"): each Team will consist of two Redding Police Department(" RPD") Officers (" Officers"), and one County Health and Human Services Agency (" HHSA") mental health clinician and/ or social worker (" MH Worker"). Each team will provide Enhanced Crisis Response and Intervention services four days per week, 10 hours per day, with days and hours to be mutually agreed upon between the Parties.
B. Enhanced Crisis Response and Intervention Services (" Services"): A Team response to law enforcement calls including, but not limited to, those involving individuals who are exhibiting signs of an extreme mental health crisis and/or being a danger to self or others and/ or mild to moderate intoxication or overdose; and Welfare and Institutions Code(" WIC") section 5150 hold determinations including arranging appropriate transportation to emergency department (" ED"). When not responding to calls for service, the Team will proactively work in the homeless community to provide resources including, but not limited to mental health treatment, drug and alcohol treatment and emergency transitional housing.
C. Areas of Operations: The Team will be the primary responding unit to mental health calls for service, and to proactively work in the homeless community to provide resources related to the above conditions in the City of Redding Section 2. RESPONSIBILITIES OF CITY.
Pursuant to the terms and conditions ofthis agreement, City shall:
A. Provide two full-time Police Officers (" Officer) to each Team as set- forth in Section 1. A above. Additional Officers may be available and assigned to other Teams, at the mutual agreement of both Parties.
B. Ensure Officer:
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1. Receives advanced training in Enhanced Crisis Response and Intervention and provides M-CRIT information to their supervisor and department staff.
2. Wears plain clothes, concealed body armor, and concealed firearms in the course and scope of their duties.
C. Provide one unmarked police emergency vehicle for use by the Team. City shall provide for all vehicle costs for repair, maintenance and operation, including any needed repairs caused by responding as a member ofthe Team to calls for Services.
D. Provide non- exclusive office space with secure storage for County documents and provide internet for the Team in the Redding Police Department (" RPD") downtown substation located at 1784 California Street, Redding, California.
E. If more than one law enforcement officer is needed to ensure the safety ofthe Team RPD shall make the sole determination as to how many officers shall respond to provide Services on the Team.
F. Coordinate to provide quarterly oral or written Team reports of Services outcomes to County including, but not limited to:
G. Number of persons assisted for mental health, drug and alcohol, emergency transitional housing assistance, veterans assisted. Coordinate with County for any modifications to Team, days of operation, work hours, and assigned personnel. All such modifications must be approved by both the City Chief of Police, and the HHSA Director or their respective designees.
H. Notify the County within two business days, in the case that City is unable to provide one assigned Officer to the Team.
I. Assume all liability for Services provided outside the scope ofthis agreement.
Section 3. RESPONSIBILITIES OF COUNTY.
Pursuant to the terms and conditions ofthis agreement, County shall:
A. Provide full-time MH Worker to collaborate and respond with each Team. Additional MH Workers may be available and assigned to other Teams, at the mutual agreement of both Parties.
B. Provide Services only if accompanied by Police Officer.
C. Coordinate to provide quarterly oral or written Team reports of Service County outcomes to City including, but not limited to:
D. Number of persons assisted for mental health, drug and alcohol, emergency transitional housing assistance, veterans assisted. Coordinate with City as set forth in Section 2. 11 for any modifications to Team( s), including, days of work, work hours, and assigned personnel with approval of City Chief of Police, and HHSA Director or designee.
E. Notify the City within two business days if County is unable to provide at least one assigned Mental Health worker to the Team( s).
Section 4. COMPENSATION.
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) DocuSign Envelope ID: 8F39C808- D172- 46CC- 9738- BEAE4F7C9EFA There will be no exchange and/ or receipt of payment from either Party to the other Party pursuant to this agreement. The consideration for performance of this agreement is the performance of the rights, duties, and obligations set forth in this agreement.
Section 5. TERM OF AGREEMENT.
This agreement shall be for a period of three years commencing as of the last date it has been signed by both Parties. Notwithstanding the foregoing, County shall not be obligated for payments hereunder for any future County fiscal year unless or until County' s Board of Supervisors appropriates funds for this agreement in County' s budget for that County fiscal year. In the event that funds are not appropriated for this agreement, then this agreement shall end as of June 30 of the last County fiscal year for which funds for this agreement were appropriated. For the purposes of this agreement, the County fiscal year commences on July 1 and ends on June 30 of the following year. County shall notify City in writing of such non- appropriation at the earliest possible date.
Section 6. TERMINATION OF AGREEMENT.
A. If City materially fails to perform City' s responsibilities under this agreement to the satisfaction of County, or if City fails to fulfill in a timely and professional manner City' s responsibilities under this agreement, or if City violates any of the terms or provisions ofthis agreement, then County shall have the right to terminate this agreement for cause effective immediately upon the County giving written notice thereof to City. If termination for cause is given by County to City and it is later determined that City was not in default or the default was excusable, then the notice of termination shall be deemed to have been given without cause pursuant to paragraph B of this section.
B. Either Party may terminate this agreement without cause on 60 days written notice to City.
C. Either Party may terminate this agreement immediately upon oral notice should funding cease or be materially decreased during the term of this agreement. This oral notice shall be followed up with a written notice within 10 business days.
D. County' s right to terminate this agreement may be exercised by the County Executive Officer, or the HHSA Director, or any HHSA Branch Director designated by the HHSA Director.
E. Should this agreement be terminated, City shall promptly provide to County any and all finished and unfinished reports, data, studies, photographs, charts, and other documents prepared by City pursuant to this agreement.
F. If this agreement is terminated, City shall only be paid for services satisfactorily completed and provided prior to the effective date of termination.
Section 7. ENTIRE AGREEMENT; AMENDMENTS; HEADINGS;
EXHIBITS/APPENDICES.
A. This agreement supersedes all previous agreements relating to the subject of this agreement and constitutes the entire understanding of the Parties hereto. City shall MOU.AS.COR.MobileCrisisTeam. 2326
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B. No changes, amendments or alterations to this agreement shall be effective unless in writing and signed by both Parties. However, minor amendments, including retroactive, that do not result in a substantial or functional change to the original intent of this agreement may be agreed to in writing between City and County HHSA Director, or any designated HHSA Branch Director, provided that the amendment is in substantially the same format as the County' s standard format amendment contained in the Shasta County Contracts Manual ( Administrative Policy 6- 101).
C. The headings that appear in this agreement are for reference purposes only and shall not affect the meaning or construction of this agreement.
D. If any ambiguity, inconsistency, or conflict exists or arises between the provisions of this agreement and the provisions of any of this agreement' s exhibits or appendices, the provisions of this agreement shall govern.
Section 8. NONASSIGNMENT OF AGREEMENT; NON- WAIVER.
Inasmuch as this agreement is intended to secure the specialized services of City, City may not assign, transfer, delegate, or sublet any interest herein without the prior written consent of County. The waiver by County of any breach of any requirement of this agreement shall not be deemed to be a waiver of any other breach.
Section 9. INDEMNIFICATION.
A. To the fullest extent permitted by law, each Party shall defend, indemnify and hold the other Party, its governing body, officers, employees and agents harmless from and against any and all liability, loss, expense including reasonable attorneys' fees, or claims for injury or damage arising out of the performance of this agreement. It is the intent of the Parties hereto that, where negligence or fault is determined to have been contributory, the principles of comparative fault will be followed and each Party shall bear the proportionate costs of any loss, damage, expense and liability attributable to a finding of the Party' s negligence or the fault of that Party.
B. Nothing in this indemnity obligation shall be construed to create any duty to, any standard of care with reference to, or any liability or obligation, contractual or otherwise, to any third party.
C. This indemnity obligation shall not be limited by the types and amounts of insurance or self-insurance maintained by the Parties.
D. The provisions of this Section 11 shall survive the expiration or termination of this agreement.
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) DocuSign Envelope ID: 8F39C808-D172-46CC-9738-BEAE4F7C9EFA Section 10. INSURANCE COVERAGE.
City and County are both covered and will remain covered throughout the term of this Agreement by policies of insurance or programs of self-insurance, for general liability, automobile liability, professional liability, property, workers' compensation and employer' s liability. Upon request by one Party a certificate of coverage will be furnished to the other Party.
Section 11. NOTICE OF CLAIM; APPLICABLE LAW; VENUE.
A. If any claim for damages is filed with City or if any lawsuit is instituted concerning City' s performance under this agreement and that in any way, directly or indirectly, contingently or otherwise, affects or might reasonably affect County, City shall give prompt and timely notice thereof to County. Notice shall be prompt and timely if given within 30 days following the date of receipt of a claim or 10 days following the date of service of process of a lawsuit. This provision shall survive the termination, expiration, or cancellation of this agreement.
B. Any dispute between the Parties, and the interpretation of this agreement, shall be governed by the laws of the State of California. Any litigation shall be venued in Shasta County.
Section 12. COMPLIANCE WITH LAWS; NON-DISCRIMINATION.
A. City shall observe and comply with all applicable present and future federal laws, state laws, local laws, codes, rules, regulations, and/ or orders that relate to the work or services to be provided pursuant to this agreement.
B. City shall not unlawfully discriminate in employment practices or in the delivery of services on the basis of race, color, creed, religion, national origin, sex, age, marital status, sexual orientation, medical condition ( including cancer, HIV, and AIDS) physical or mental disability, use of family care leave under either the Family & Medical Leave Act or the California Family Rights Act, or on the basis of any other status or conduct protected by law.
C. City represents that City is in compliance with and agrees that City shall continue to comply with the Americans with Disabilities Act of 1990 ( 42 U.S. C. sections 12101, et seq.), the Fair Employment and Housing Act( Government Code sections 12900, et seq.), and regulations and guidelines issued pursuant thereto.
D. In addition to any other provisions of this agreement, City shall be solely responsible for any and all damages caused, and/ or penalties levied, as the result of City' s noncompliance with the provisions ofthis section.
Section 13. ACCESS TO RECORDS; RECORDS RETENTION.
A. County, federal, and state officials shall have access to any books, documents, papers, and records of City that are directly pertinent to the subject matter of this agreement for the purpose of auditing or examining the activities of City or County.
Except where longer retention is required by federal or state law, City shall maintain all records for five years after County makes final payment hereunder.
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) DocuSign Envelope ID: 8F39C808- D172- 46CC- 9738- BEAE4F7C9EFA This provision shall survive the termination, expiration, or cancellation of this agreement.
B. City shall maintain appropriate records to ensure a proper accounting of all funds and expenditures pertaining to the work performed or the services provided pursuant to this agreement. City shall maintain records providing information that account for all funds and expenses related to the provision of services provided pursuant to this agreement. Access to these records shall be provided to County during working days, 8: 00 a.m. to 5: 00 p.m. and at other times upon reasonable notice by County, and upon request of state and federal agencies charged with the administration of programs related to the work or services to be provided pursuant to this agreement.
C. City agrees to accept responsibility for receiving, replying to, and/ or complying with any audit exception by appropriate federal, state, or County audit directly related to the provisions of this agreement. City agrees to repay County the full amount of payment received for duplicate billings, erroneous billings, audit exceptions, or false or deceptive claims. City agrees that County may withhold any money due and recover through any appropriate method any money erroneously paid under this agreement if evidence exists of less than full compliance with this agreement including, but not limited to, exercising a right of set- off against any compensation payable to City.
Section 14. COMPLIANCE WITH CHILD, FAMILY, AND SPOUSAL SUPPORT REPORTING OBLIGATIONS.
City' s failure to comply with state and federal child, family, and spousal support reporting requirements regarding City' s employees or failure to implement lawfully served wage and earnings assignment orders or notices of assignment relating to child, family, and spousal support obligations shall constitute a default under this agreement. City' s failure to cure such default within 90 days of notice by County shall be grounds for termination of this agreement.
Section 15. LICENSES AND PERMITS.
City, and City' s officers, employees, and agents performing the work or services required by this agreement, shall possess and maintain all necessary licenses, permits, certificates, and credentials required by the laws of the United States, the State of California, the County of Shasta, and all other appropriate governmental agencies, including any certification and credentials required by County. Failure to maintain the licenses, permits, certificates, and credentials shall be deemed a breach of this agreement and constitutes grounds for the termination ofthis agreement by County.
Section 16. PERFORMANCE STANDARDS.
Both Parties shall perform the work or services required by this agreement in accordance with the industry and/ or professional standards applicable to each Party' s work or services.
Section 17. CONFLICTS OF INTEREST.
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) DocuSign Envelope ID: 8F39C808- D172-46CC-9738-BEAE4F7C9EFA City and City' s officers and employees shall not have a financial interest, or acquire any financial interest, direct or indirect, in any business, property, or source of income that could be financially affected by or otherwise conflict in any manner or degree with the performance of the work or services required under this agreement.
Section 18. NOTICES.
A. Except as provided in section 6.C. ofthis agreement( oral notice of termination due to insufficient funding), any notices required or permitted pursuant to the terms and provisions of this agreement shall be given to the appropriate Party at the address specified below or at such other address as the Party shall specify in writing Such notice shall be deemed given: ( 1) upon personal delivery; or( 2) if sent by first class mail, postage prepaid, two days after the date of mailing.
If to County: Branch Director
HHSA Behavioral Health and Social Services
Branch
Attn: Contracts
2640 Breslauer Way
Redding, CA 96001
Tele: ( 530) 225- 5900
Fax: ( 530) 229- 8404
If to City: City Manager
City of Redding
777 Cypress Avenue
Redding, CA 96001
Tele: ( 530) 225- 4060
B. Any oral notice authorized by this agreement shall be given to the persons specified in Section 18.A. and shall be deemed to be effective immediately.
C. Unless otherwise stated in this agreement, any written or oral notices on behalf of the County as provided for in this agreement may be executed and/ or exercised by the County Executive Officer.
Section 19. AGREEMENT PREPARATION.
It is agreed and understood by the Parties that this agreement has been arrived at through negotiation and that neither Party is to be deemed the Party which created any uncertainty in this agreement within the meaning of section 1654 of the Civil Code.
Section 20. COMPLIANCE WITH POLITICAL REFORM ACT.
City shall comply with the California Political Reform Act (Government Code sections 81000, et seq.), with all regulations adopted by the Fair Political Practices Commission pursuant thereto, and with the County' s Conflict of Interest Code, with regard to any obligation on the part of City to disclose financial interests and to recuse from influencing any County decision which may affect City' s financial interests. If required by the County' s Conflict of Interest Code, City shall comply with the ethics training requirements of Government Code sections 53234, et seq.
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) DocuSign Envelope ID: 8F39C808-D172-46CC- 9738-BEAE4F7C9EFA Section 21. SEVERABILITY.
If any portion of this agreement or application thereof to any person or circumstance is declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal or state statute or regulation or County ordinance, the remaining provisions of this agreement, or the application thereof, shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this agreement are severable.
Section 22. CONFIDENTIALITY.
During the term of this agreement, both Parties may have access to information that is confidential or proprietary in nature. Both Parties agree to preserve the confidentiality of and to not disclose any such information to any third party without the express written consent of the other Party or as required by law. This provision shall survive the termination, expiration, or cancellation of this agreement.
Section 23. CONFIDENTIALITY OF PATIENT INFORMATION.
All information and records obtained in the course of providing services under this agreement shall be confidential, and City and all of City' s employees, volunteers, agents, and officers shall comply with state and federal requirements regarding confidentiality of patient information ( including, but not limited to, section 5328 of the Welfare and Institutions Code; Civil Code section 56. 10; the Health Insurance Portability and Accountability Act of 1996 (" HIPAA) and the regulations adopted pursuant thereto; Title 42, Code of Federal Regulations, Part 2; and Title 45, Code of Federal Regulations, section 205. 50). All applicable regulations and statutes relating to patients' rights shall be adhered to. This provision shall survive the termination, expiration, or cancellation of this agreement.
Section 24. SCOPE AND OWNERSHIP OF WORK.
All research data, reports, and every other work product of any kind or character arising from or relating to this agreement shall become the property of the County and be delivered to the County upon completion of its authorized use pursuant to this agreement. County may use such work products for any purpose whatsoever. All works produced under this agreement shall be deemed works produced by a City for hire, and all copyright with respect thereto shall vest in the County without payment of royalty or any other additional compensation. Notwithstanding anything to the contrary contained in this agreement, City shall retain all of City' s rights in City' s own proprietary information, including, without limitation, City' s methodologies and methods of analysis, ideas, concepts, expressions, know how, methods, techniques, skills, knowledge, and experience possessed by City prior to, or acquired by City during the performance of this agreement and City shall not be restricted in any way with respect thereto.
Section 25. USE OF COUNTY PROPERTY.
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) DocuSign Envelope ID: 8F39C808- D172- 46CC- 9738- BEAE4F7C9EFA City shall not use County premises, property ( including equipment, instruments, and supplies), or personnel for any purpose other than in the performance of City' s obligations under this agreement.
Section 26. COUNTERPARTS/ ELECTRONIC, FACSIMILE, AND PDF SIGNATURES.
This agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument. Each Party of this agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act((" CUETA") Cal.
Civ. Code §§ 1633. 1 to 1633. 17), for executing this agreement. The Parties further agree that the electronic signatures of the Parties included in this agreement are intended to authenticate this writing and to have the same force and effect as manual signatures.
Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among Parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the Parties.
For purposes ofthis section, a digital signature is a type of" electronic signature" as defined in subdivision ( i) of Section 1633. 2 of the Civil Code. Facsimile signatures or signatures transmitted via pdf document shall be treated as originals for all purposes.
SIGNATURE PAGE FOLLOWS
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) DocuSign Envelope ID: 8F39C808- D172- 46CC- 9738- BEAE4F7C9EFA IN WITNESS WHEREOF, County and City have executed this agreement on the dates set forth below. By their signatures below, each signatory represents they have the authority to execute this agreement and to bind the Party on whose behalf their execution is made.
COUNTY OF SHASTA
DocuSigned by:
B Date:
05/ 16/ 2023 112: 34 PM PDT
E7759 OAA4
Name: ary Villiams Title: Acting County Executive Officer Approved as to form:
JAMES ROSS
County Counsel
DocuSigned by:
Date: 05/ 15/ 2023 1 9: 47 AM PDT
85E34E 2EA4
ame: an Cox Title: Senior Deputy County Counsel
RISK MANAGEMENT APPROVAL
r—
DocuSigned by:
05/ 15/ 2023 1 10: 43 AM PDT By,,u w c jniliA.coL . Date:
ODBC2 F D751A45s
Name: James Johnson Title: Risk Management Analyst III
CITY OF REDDING
DocuSigned by:
Byt i pun Date: 05/ 15/ 2023 1 12: 56 PM PDT
E5A3E095A82C4FB...
Name: Barry Tippin Title: Redding City Manager
DocuSigned by:
f, SCIW jy Date: 05/ 15/ 2023 1 11: 26 AM PDT
ame 8ei11ii3schueller Title: Redding Police Chief
Approved as to form:
DocuSigned by:
Y
avYi
Date: 05/ 15/ 2023 1 11: 38 AM PDT VtLo
aMfliery41beWalt Title: City Attorney
ATTEST:
Z L 01111
A/ 6,, PAMELA MIZE, City Clerk
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) DocuSign
Certificate Of Completion
Envelope Id: 8F39C808D17246CC9738BEAE4F7C9EFA Status: Completed Subject: DocuSign: Agr. AS. COR. MobileCrisisTeam. 2326. FNL. docx, Attachment_ H_- COR. Mobile. Cri...
Source Envelope:
Document Pages: 11 Signatures: 6 Envelope Originator:
Certificate Pages: 6 Initials: 0 Debbie Murphy
AutoNav: Enabled CA 96001
Envelopeld Stamping: Enabled ddmurphy@co. shasta. ca. us Time Zone:( UTC- 08: 00) Pacific Time( US& Canada) IP Address: 192. 159. 8. 107 Record Tracking
Status: Original Holder: Debbie Murphy Location: DocuSign 5/ 12/ 2023 1: 05: 47 PM ddmurphy@co. shasta. ca. us
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: County of Shasta Location: DocuSign Signer Events Signature Timestamp
County Counsel Completed Sent: 5/ 12/ 2023 1: 56:44 PM
countycounsel@co. shasta. ca. us Viewed: 5/ 12/ 2023 2: 54: 38 PM Senior Deputy County Counsel Signed: 5/ 12/ 2023 2: 54: 42 PM Security Level: Email, Account Authentication Using IP Address: 192. 159. 8. 102 None)
Electronic Record and Signature Disclosure:
Accepted: 5/ 12/2023 2:54:38 PM
ID: dl 1c3c80- 2060- 485b- a560- 091cb4cd71f6
Alan Cox DocuS' grne d by Sent: 5/ 12/ 2023 2: 54: 44 PM acox@co. shasta. ca. us 161A, to Viewed: 5/ 15/ 2023 9: 47: 36 AM Deputy County Counsel III, County of Shasta
BSE34EBA52 404.
Signed: 5/ 15/ 2023 9: 47: 45 AM
Security Level: Email, Account Authentication
None) Signature Adoption: Pre- selected Style
Using IP Address: 192. 159. 8. 102
Electronic Record and Signature Disclosure:
Accepted: 5/ 15/2023 9:47:36 AM
ID: 784ada5f- af3a- 4365- 8835- e4f2da829238
Risk Management Completed Sent: 5/ 15/ 2023 9: 47:47 AM supportservicescontracts@co. shasta. ca. us Viewed: 5/ 15/ 2023 10: 21: 01 AM Security Level: Email, Account Authentication Signed: 5/ 15/ 2023 10: 22: 28 AM None) Using IP Address: 192. 159. 8. 103
Electronic Record and Signature Disclosure:
Accepted: 5/ 15/2023 10: 21: 01 AM
ID: 254e84a9-4fcb-4877- bdc2-82740d0bfb4f
James Johnson
DocuSigned by: Sent: 5/ 15/ 2023 10: 22: 30 AM
JDJohnson@co. shasta. ca. us jaK+t, S jdun,Sbtn, Viewed: 5/ 15/ 2023 10: 43: 38 AM ODBC25FD751A456...
Risk Management Analyst III Signed: 5/ 15/ 2023 10: 43: 57 AM Security Level: Email, Account Authentication
None) Signature Adoption: Pre- selected Style
Using IP Address: 192. 159. 8. 102
Electronic Record and Signature Disclosure:
Accepted: 5/ 15/ 2023 10: 43: 38 AM
ID: 33a7a439- c542-46de- a434- e946ef19b4b0
Packet Pg. 85
Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) Signer Events Signature Timestamp
Bill Schueller r—
pocu$ igne° by Sent: 5/ 15/ 2023 10: 43: 59 AM
bschueller@reddingpolice. org
L Sautt Lu Viewed: 5/ 15/ 2023 11: 25: 36 AM
8E5B8F085123484. Signed: 5/ 15/ 2023 11: 26: 10 AM
Security Level: Email, Account Authentication 9
None)
Signature Adoption: Pre- selected Style
Using IP Address: 68. 186. 34. 12
Electronic Record and Signature Disclosure:
Accepted: 5/ 15/ 2023 11: 25: 36 AM
ID: 6233b213- 1561- 41a1- 89e4- b897916eb3bf
Barry DeWalt
r—DocuSigned by: Sent: 5/ 15/ 2023 11: 26: 12 AM
bdewalt@cityofredding. org
f20'1
L1 VtJ Viewed: 5/ 15/ 2023 11: 37:45 AM
9BE2Dd16860941 E... Signed: 5/ 15/ 2023 11: 38: 01 AM
Security Level: Email, Account Authentication 9
None)
Signature Adoption: Pre- selected Style
Using IP Address: 68. 186. 34. 1
Electronic Record and Signature Disclosure:
Accepted: 5/ 15/ 2023 11: 37: 45 AM
ID: 0078f390- 266f- 4cc5- 8ef7- 7914520829f9
Barry Tippin
DocuSigned by: Sent: 5/ 15/ 2023 11: 26: 12 AM
btippin@cityofredding. org
f7 VYt1 tirpitA. Viewed: 5/ 15/ 2023 12: 12: 19 PM
E5A3E095A82C4FB... Signed: 5/ 15/ 2023 12: 56: 45 PM Security Level: Email, Account Authentication 9 None)
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Mary Williams a—
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mewilliams@co. shasta.ca.usU3 ,5uniS Viewed: 5/ 16/ 2023 12: 33: 44 PM E1759 8610WC7 Signed: 5/ 16/ 2023 12: 34: 07 PM
Acting County Executive Officer 9
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) Carbon Copy Events Status Timestamp
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/ Encrypted 5/ 12/ 2023 1: 56: 44 PM Certified Delivered Security Checked 5/ 16/ 2023 12: 33: 44 PM Signing Complete Security Checked 5/ 16/ 2023 12: 34: 07 PM Completed Security Checked 5/ 16/ 2023 12: 34: 07 PM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) Electronic Record and Signature Disclosure created on: 1/ 12/ 2023 6:02: 20 PM Parties agreed to: County Counsel, Alan Cox, Risk Management, James Johnson, Bill Schueller, Barry DeWalt, Barry Tippin, County Administrative Office, Mary W
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All notices and disclosures will be sent to you electronically Packet Pg. 88
Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) i. decline to sign a document from within your signing session, and on the subsequent page, select the check- box indicating you wish to withdraw your consent, or you may; ii. send us an email to cao@co. shasta. ca. us and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process..
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Attachment: CIRT MOU - 2023 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution approving and adopting the 84th Amendment to City Budget Resolution No. 2019-050 approving the addition of one full time CIRT Police Officer position; and authorize the City Manager to execute the Memorandum of Understanding with Shasta County Health and Human Services to establish the Crisis Intervention Response Team and appropriate the funds for the Police Officer position.
Fiscal Impact
Under the draft agreement, Shasta County Health and Human Services will pay $122,000 annually to the City of Redding for a three-year contract covering approximately three-quarters of a Redding Police Officer’s salary and benefits. The remaining costs for the Officer will be paid for through a grant received by the Housing Authority from the State of California called Permanent Local Housing Allocation. It is anticipated there will $50,000 annually from this funding source. The Redding Police Department is also providing a new unmarked police SUV for the team and office space at the downtown substation. A Redding business owner recently donated $20,000 toward the purchase of the CIRT police SUV and Caliber Office Furniture donated desks and chairs for the office space.
Alternative Action
The City Council could choose to not authorize the City Manager to enter into an agreement with the listed outside agencies and provide staff with an alternative direction.
Background/Analysis
MEETING DATE: April 6, 2021
ITEM NO. 9.9(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.9(b)--Consider adoption of Resolution and authorizing the City Manager to approve a Memorandum of Understanding with Shasta County Health and Human Services to establish the Crisis Intervention Response Team (CIRT).
Bill Schueller, Chief of Police
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Attachment: Previous Staff Report - April 6, 2021 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Report to Redding City Council March 30, 2021
Re: 9.9(b)--Crisis Intervention Response Team (CIRT) Page 2 The Redding Police Department, in collaboration with the Shasta County Sheriff’s Office, Hill Country, and Shasta County Public Health, is creating a Crisis Intervention Response Team (CIRT) to serve mental health consumers in Shasta County.
The team will be comprised of specially trained officers, partnered with a mental health professional, to assist individuals in mental health crises. The team will work to connect individuals in crisis to resources to help address their physical and mental health needs, and when appropriate, divert them from the criminal justice system.
The Redding Police Department CIRT Officer will be partnered with a Shasta County Deputy Sheriff and a mental health clinician from Shasta County Public Health.
The team will operate out of the downtown Redding substation. The team will be in plain clothes, with body armor and weapons concealed. A new, unmarked SUV emergency vehicle outfitted with a single person transport cage will be utilized by the team. The team will be the primary responding unit for all emergency crisis intervention calls for service in the Shasta County basin to include:
• Redding
• Cottonwood
• Happy Valley
• Shasta Lake
• Palo Cedro
• Shingletown, Round Mountain, Anderson, will be evaluated on a case-by-case basis.
Team members will receive additional training in crisis intervention, hostage (crisis) negotiations, and other curricula deemed appropriate with the goal of providing team members with the cognition, information, resources, and skills that allow effective problem-solving and promote positive outcomes when responding to incidents involving mental health challenges.
This includes:
• Enhanced knowledge of mental health-related topics
• Understanding of the laws protecting people with disabilities • Improved de-escalation and crisis resolution skills
• Provision of referrals, resources, information, and follow up for consumers and their families
• Reduced stigma and assumptions
• Cultural sensitivity and recognition
The CIRT Officers and clinician will be responsible for provide ongoing training in Crisis Intervention to law enforcement agencies in Shasta County.
Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work and play in the City of Redding.” Attachments
Resolution
Personal Services Agreement (available online)
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Attachment: Previous Staff Report - April 6, 2021 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution approving and adopting the 76th Amendment to City Budget Resolution No. 2021-078 approving two full time CIRT Officers and appropriating $156,070.
Fiscal Impact
The annual cost of the two positions is approximately $440,000 per year. There is no anticipated impact on the General Fund. Fiscal Year 2022-23 funding is available from the Janssen and Distributors Settlement Funds, which will be available over the next nine (9) years. Any required additional funding in excess of the settlement funds will be identified and included through the biennial budget process for Fiscal Years 2023-24 and 2024-25.
Alternative Action
The City Council could choose not to authorize hiring of two additional CIRT Officers and provide staff with alternative direction.
Background/Analysis
On July 21, 2021, California Attorney General Rob Bonta announced the final settlement agreements with prescription opioid manufacturer Janssen Pharmaceuticals and pharmaceutical distributors McKesson, Cardinal Health, and AmerisourceBergen (Janssen and Distributors or J&D Settlement), which will provide substantial funds for the abatement of the opioid epidemic in California. Funds can be used for a variety of activities as outlined below:
1 Provision of matching funds or operating costs for substance use disorder facilities with an approved project within the Behavioral Health Continuum Infrastructure Program (BHCIP).
MEETING DATE: December 20, 2022
ITEM NO. 9.9(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.9(a)--Consider Resolution appropriating funds relative to hiring two (2) Crisis Intervention Response Team (CIRT) Officers.
Bill Schueller, Chief of Police
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Attachment: Previous Staff Report - December 20, 2022 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Report to Redding City Council December 13, 2022
Re: 9.9(a)--Resolution re Additional CIRT Officers Page 2 2 Creating new or expanded substance use disorder (SUD) treatment Infrastructure. 3 Addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD.
4 Diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction.
5 Interventions to prevent drug addiction in vulnerable youth.
The Crisis Intervention Response Team (CIRT), made up of two plain clothes Redding Police Department Officers with weapons and body armor concealed, operating in an unmarked emergency vehicle and paired with a clinician from Shasta County’s Health and Human Services Agency (HHSA) or Hill Country Community Clinic, would qualify under items 3 and 4 for this funding proposal as follows:
Item 3: The expansion of a second CIRT would allow focused outreach to unsheltered individuals suffering from SUD. CIRT would proactively contact individuals, in public spaces, homeless camps, and through referrals from patrol staff, and offer resources to include temporary housing or shelter coupled with substance abuse treatment and mental health treatment.
Item 4: CIRT would respond to calls for service of overdoses and suicidal individuals in crisis due to mental health, substance abuse, or both. Whenever possible, CIRT would divert the individual away from the criminal justice system and into treatment. CIRT would receive advanced training in crisis intervention, mental health, and substance abuse. In addition, CIRT would provide training to RPD patrol staff on SUD outreach and crisis intervention to include best practices and resource availability.
Having two CIRT teams would provide the City of Redding with six day, 80 hours a week coverage. One day a week would be an overlap day with both teams working for training, education, and focused outreach efforts of large homeless populations.
Environmental Review
This is not a project defined under the California Environmental Quality Act (CEQA) and no further action is required.
Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
^Resolution
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Attachment: Previous Staff Report - December 20, 2022 (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Agr.AS.COR.M-CIRT.2628
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PERSONAL SERVICES AGREEMENT BETWEEN THE COUNTY OF SHASTA AND
CITY OF REDDING
This Agreement is entered into between the County of Shasta, a political subdivision of the State of California, through its Health and Human Services Agency (“County”), and City of Redding, a municipal corporation (“City”) (collectively, the “Parties” and individually a “Party”), for participation in a Mobile Crisis Intervention Response Team (“M-CIRT”) to improve responses to residents in mental health crises and proactively identify and engage such residents to reduce fatal encounters, which may include such residents using a means to harm themselves or others (e.g. weapons), and may include the use of law enforcement officers.
Section 1. DEFINITIONS
For the purposes of this Agreement, the following definitions shall apply:
A. Mobile Crisis Intervention Team (“Team”): a Team will consist of 2 Redding Police Department (“RPD”) Officers (“Officers”), and 1 County Health and Human Services Agency (“HHSA”) mental health clinician and/or social worker (“MH Worker”). A Team will provide Enhanced Crisis Response and Intervention Services 4 days per week, 10 hours per day, with days and hours to be mutually agreed upon between the Parties. The Parties can form additional Teams upon mutual agreement; all Teams shall be subject to this Agreement.
B. Enhanced Crisis Response and Intervention Services (“Services”): A Team response to law enforcement calls including, but not limited to, those involving individuals who are exhibiting signs of an extreme mental health crisis, and/or being a danger to self or others, and/or mild to moderate intoxication or overdose.
Services include Welfare and Institutions Code (“WIC”) section 5150 hold determinations, including arranging appropriate transportation to emergency department (“ED”). When not responding to calls for service, the Team will proactively work in the homeless community to provide resources including, but not limited to, mental health treatment, drug and alcohol treatment and emergency transitional housing.
C. Areas of Operations: The Team will be the primary responding unit to mental health calls for service, and will proactively work in the homeless community to provide resources related to the above conditions, within the City of Redding.
Section 2. RESPONSIBILITIES OF CITY
Pursuant to the terms and conditions of this Agreement, City shall:
A. Provide 2 full-time Officers to each Team as set-forth in Section 1.A. above.
Additional Officers may be available and assigned to other Teams, at the mutual Agreement of both Parties.
B. Ensure Officers:
1. Receive advanced training, including enhanced crisis response, intervention, and de-escalation.
NO WITHHOLDING
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2. Provide M-CIRT information to their supervisor and department staff.
3. Wear plain clothes, concealed body armor, and concealed firearms in the course and scope of their duties.
C. Provide 1 unmarked police emergency vehicle for use by the Team. City shall provide for all vehicle costs for repair, maintenance and operation, including any needed repairs caused by responding as a member of the Team to calls for Services.
D. Provide non-exclusive office space with secure storage for County documents and provide internet for the Team in the RPD downtown substation located at 1784 California Street, Redding, California.
E. If more than 1 law enforcement officer is needed to ensure the safety of the Team, RPD shall make the sole determination as to how many officers shall respond to provide Services with the Team. Provide quarterly oral or written Team reports of Services’ outcomes to County including but not limited to: number of persons assisted for mental health, drug and alcohol, emergency transitional housing assistance, and veterans assisted.
F. Coordinate with County for any modifications to Team, days of operation, work hours, and assigned personnel. All such modifications must be approved by both the City Chief of Police, or their designee, and the HHSA Director, or their designee.
G. Notify the County within 2 business days in the case that City is unable to provide 1 assigned Officer to the Team(s).
H. Assume all liability for Services provided by RPD that are outside the scope of this Agreement.
Section 3. RESPONSIBILITIES OF COUNTY
Pursuant to the terms and conditions of this Agreement, County shall:
A. Pursuant to Section 1.A., provide a full-time MH Worker to collaborate and respond with each Team. Additional MH Workers may be available and assigned to other Teams, at the mutual Agreement of both Parties.
B. Ensure MH Worker:
1. Receives advanced training, including enhanced crisis response, intervention, and de-escalation.
2. Provides M-CIRT information to their supervisor and department staff.
C. Provide Services only if accompanied by an Officer.
D. Provide quarterly oral or written Team reports of County’s Services’ outcomes to City including but not limited to: number of persons assisted for mental health, drug and alcohol, emergency transitional housing assistance, and veterans assisted.
E. Coordinate with City, as set forth in Section 2.G., for any modifications to Team(s).
F. Notify the City within 2 business days if County is unable to provide at least 1 assigned MH Worker to the Team(s).
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Attachment: Mobile Crisis MOU - Final (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) Agr.AS.COR.M-CIRT.2628
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G. Assume all liability for Services provided by County that are outside the scope of this Agreement.
Section 4. COMPENSATION
There will be no exchange and/or receipt of payment from either Party to the other Party pursuant to this Agreement. The consideration for this Agreement is the mutual benefits of the mutual performance of the rights, duties, and obligations set forth in this Agreement.
Section 5. TERM OF AGREEMENT
This Agreement shall commence as of May 16, 2026, and shall end April 30, 2029.
Section 6. TERMINATION OF AGREEMENT
A. If either party materially fails to perform its responsibilities under this Agreement to the satisfaction of the other, or if either party fails to fulfill in a timely and professional manner its responsibilities under this Agreement, or if either party violates any of the terms or provisions of this Agreement, then the other party shall have the right to terminate this Agreement for cause effective immediately upon giving written notice thereof to the other party. If termination for cause is given and it is later determined that the other party was not in default, then the notice of termination shall be deemed to have been given without cause pursuant to paragraph B of this Section.
B. Either Party may terminate this Agreement without cause on 30 days written notice to other Party.
C. Either Party may terminate this Agreement immediately upon oral notice should funding cease or be materially decreased during the term of this Agreement.
D. Either Party may terminate this Agreement immediately upon oral notice should either Party be unable to comply with the obligations of this Agreement due to any material cause which is beyond the reasonable control of said Party, including, but not limited to: fire, explosion, power outages, strikes or labor disputes, acts of God, civil disturbances, acts of civil or military authorities, acts of terrorism, fuel or energy shortages, acts and/or omissions by third party communications carriers, or any other cause beyond Party’s control.
E. County’s right to terminate this Agreement may be exercised by the County Executive Officer, or their designee, or the HHSA Director, or their designee.
F. Should this Agreement be terminated, City shall promptly provide to County any and all finished and unfinished reports, data, studies, photographs, charts, and other documents prepared by City pursuant to this Agreement in a format acceptable to County.
Section 7. ENTIRE AGREEMENT; AMENDMENTS; HEADINGS;
EXHIBITS/APPENDICES
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A. This Agreement supersedes all previous agreements relating to the subject of this Agreement and constitutes the entire understanding of the Parties hereto. City shall be entitled to no other benefits other than those specified herein. City specifically acknowledges that in entering into and executing this Agreement, City relies solely upon the provisions contained in this Agreement and no others.
B. No changes, amendments, or alterations to this Agreement shall be effective unless in writing and signed by both Parties. However, minor amendments, including retroactive, that do not result in a substantial or functional change to the original intent of this Agreement and do not add a payment obligation under this Agreement may be agreed to in writing between City and the HHSA Director, or their designee, provided that the amendment is in substantially the same format as the County’s standard format amendment contained in the Shasta County Contracts Manual (Administrative Policy 6-101).
C. The headings that appear in this Agreement are for reference purposes only and shall not affect the meaning or construction of this Agreement.
D. If any ambiguity, inconsistency, or conflict exists or arises between the provisions of this Agreement and the provisions of any of this Agreement’s exhibits or appendices, the provisions of this Agreement shall govern.
Section 8. NONASSIGNMENT OF AGREEMENT; NON-WAIVER
Inasmuch as this Agreement is intended to secure the specialized services, neither party may assign, transfer, delegate, or sublet any interest herein without the prior written consent of the other. The waiver of any breach of any requirement of this Agreement by either party shall not be deemed to be a waiver of any other breach.
Section 9. INDEMNIFICATION
A. Each Party shall defend, indemnify, and hold the other Party, its officials, officers, employees, agents, and volunteers, harmless from and against any and all liability, loss, expenses (including reasonable attorney's fees (including County Counsel fees and City Attorney fees)), or claims for injury or damage arising out of the performance of this Agreement, but only in proportion to and to the extent such liability, loss, expenses (including reasonable attorney's fees), or claims for injury or damage are caused by or result from the negligent or intentional acts or omissions of the indemnifying Party, its officials, officers, employees, agents, subcontractors, or volunteers.
B. This indemnification provision is independent of, and shall not in any way be limited by, a Party’s insurance coverage or lack of coverage, or by the insurance requirements of this Agreement. Each Party’s acknowledgement or approval of a Party’s evidence of insurance coverage required by this Agreement does not in any way relieve the Party from its obligations under this Section.
Section 10. INSURANCE REQUIREMENTS
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Attachment: Mobile Crisis MOU - Final (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team) Agr.AS.COR.M-CIRT.2628
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City and County are both covered and will remain covered throughout the term of this Agreement by policies of insurance or programs of self-insurance, for general liability, automobile liability, professional liability, property, workers’ compensation and employer’s liability. Upon request by either Party, a certificate of coverage will be furnished to the other Party.
Section 11. NOTICE OF CLAIM; APPLICABLE LAW; VENUE
A. If any claim for damages is filed with or received by either party or if any lawsuit is instituted concerning a party’s performance under this Agreement and that in any way, directly or indirectly, contingently or otherwise, affects or might reasonably affect the other party, the receiving party shall give notice thereof to the other party within 30 days following the date of receipt of a claim or 10 days following the date of service of process of a lawsuit. This provision shall survive the termination, expiration, or cancellation of this Agreement.
B. Any dispute between the Parties, and the interpretation of this Agreement, shall be governed by the laws of the State of California. Any litigation shall be venued in Shasta County. The Parties shall bear their own attorneys’ fees in any dispute between them.
Section 12. COMPLIANCE WITH LAWS; NON-DISCRIMINATION
A. The parties shall observe and comply with all applicable present and future federal laws, state laws, local laws, codes, rules, regulations, and/or orders that relate to the work or services to be provided pursuant to this Agreement.
B. The parties shall not unlawfully discriminate in employment practices or in the delivery of services on the basis of race, color, creed, religion, national origin, sex, age, marital status, sexual orientation, medical condition (including cancer, HIV, and AIDS) physical or mental disability, use of family care leave under either the Family & Medical Leave Act or the California Family Rights Act, or on the basis of any other status or conduct protected by law.
C. The parties represent that they are in compliance with and agrees that City shall continue to comply with the Americans with Disabilities Act of 1990 (42 U.S.C. sections 12101, et seq.), the Fair Employment and Housing Act (Government Code sections 12900, et seq.), and regulations and guidelines issued pursuant thereto.
Furthermore, where applicable, the parties represent and warrant all websites created for or used by the other party to provide services pursuant to this Agreement shall comply with the Americans with Disabilities Act of 1990 and shall specifically conform to the Web Content Accessibility Guidelines found at www.w3.org, and comply with section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794d), Subpart B, 1194.22.
D. In addition to any other provisions of this Agreement, each party shall be solely responsible for any and all damages caused, and/or penalties levied, as the result of its noncompliance with the provisions of this Section.
Section 13. ACCESS TO RECORDS; RECORDS RETENTION
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A. County, federal, and state officials shall have access to any books, documents, papers, and records of City and County that are directly pertinent to the subject matter of this Agreement for the purpose of auditing or examining the activities of City or County. Except where longer retention is required by federal or state law, City shall maintain all records for 5 years after County makes final payment hereunder. This provision shall survive the termination, expiration, or cancellation of this Agreement.
B. The parties shall maintain appropriate records to ensure a proper accounting of all funds and expenditures pertaining to the work performed or the services provided pursuant to this Agreement. The parties shall maintain records providing information that account for all funds and expenses related to the provision of services provided pursuant to this Agreement. Access to these records shall be provided to the other party, upon request, during working days, 8:00 a.m. to 5:00 p.m. and at other times upon reasonable notice, and upon request of state and federal agencies charged with the administration of programs related to the work or services to be provided pursuant to this Agreement.
C. Each party agrees to accept responsibility for receiving, replying to, and/or complying with any audit exception by appropriate federal, state, City or County audit directly related to the provisions of this Agreement. Each party agrees to repay the other the full amount of payment received for duplicate billings, erroneous billings, audit exceptions, or false or deceptive claims. Each party agrees that the other may withhold any money due and recover through any appropriate method any money erroneously paid under this Agreement if evidence exists of less than full compliance with this Agreement including, but not limited to, exercising a right of set-off against any compensation payable to City.
Section 14. COMPLIANCE WITH CHILD, FAMILY, AND SPOUSAL SUPPORT
REPORTING OBLIGATIONS
City’s failure to comply with state and federal child, family, and spousal support reporting requirements regarding City’s employees or failure to implement lawfully served wage and earnings assignment orders or notices of assignment relating to child, family, and spousal support obligations shall constitute a default under this Agreement. City’s failure to cure such default within 90 days of notice by County shall be grounds for termination of this Agreement.
Section 15. LICENSES AND PERMITS
Each party’s officers, employees, and agents performing the work or services required by this Agreement, shall possess and maintain all necessary licenses, permits, certificates, and credentials required by the laws of the United States, the State of California, the County of Shasta, and all other appropriate governmental agencies, including any certification and credentials required by the City or County. Failure to maintain the licenses, permits, certificates, and credentials shall be deemed a breach of this Agreement and constitutes grounds for the termination of this Agreement.
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Section 16. PERFORMANCE STANDARDS
Both Parties shall perform the work or services required by this Agreement in accordance with the industry and/or professional standards applicable to each Party’s work or services.
Section 17. CONFLICTS OF INTEREST
The parties’ officers and employees shall not have a financial interest, or acquire any financial interest, direct or indirect, in any business, property, or source of income that could be financially affected by or otherwise conflict in any manner or degree with the performance of the work or services required under this Agreement.
Section 18. NOTICES
A. Except as provided in Sections 6.C. and D of this Agreement (oral notice of termination), any notices required or permitted pursuant to the terms and provisions of this Agreement shall be given to the appropriate Party at the address specified below or at such other address as the Party shall specify in writing. Such notice shall be deemed given: (1) upon personal delivery; or (2) if sent by first class mail, postage prepaid, 2 days after the date of mailing.
If to County: HHSA Branch Director
Behavioral Health and Social Services
Attn: Contracts Unit
2640 Breslauer Way
Redding, CA 96001
Phone: 530-229-5300
If to City: City Manager
City of Redding
777 Cypress Avenue
Redding, CA 96001
Phone: 530-225-4060
B. Any oral notice authorized by this Agreementshall be given to the persons specified in Section 18.A. and shall be deemed to be effective immediately.
C. Unless otherwise stated in this Agreement, any written or oral notices on behalf of the County as provided for in this Agreement may be executed and/or exercised by the HHSA Director, or their designee.
Section 19. AGREEMENT PREPARATION
It is agreed and understood by the Parties that this Agreement has been arrived at through negotiation and that neither Party is to be deemed the Party which created any uncertainty in this Agreement within the meaning of section 1654 of the Civil Code.
Section 20. COMPLIANCE WITH POLITICAL REFORM ACT
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The parties shall comply with the California Political Reform Act (Government Code, sections 81000, et seq.), with all regulations adopted by the Fair Political Practices Commission pursuant thereto, and with the City’s and County’s Conflict of Interest Code, with regard to any obligation on the part of the party to disclose financial interests and to recuse from influencing any City or County decision due to its financial interests..
Section 21. SEVERABILITY
If any portion of this Agreement or application thereof to any person or circumstance is declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal or state statute or regulation or County ordinance, the remaining provisions of this Agreement, or the application thereof, shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this Agreement are severable.
Section 22. CONFIDENTIALITY
During the term of this Agreement, both Parties may have access to information that is confidential or proprietary in nature. Both Parties agree to preserve the confidentiality of and to not disclose any such information to any third party without the express written consent of the other Party or as required by law. This provision shall survive the termination, expiration, or cancellation of this Agreement.
Section 23. CONFIDENTIALITY OF PATIENT INFORMATION
A. All information and records obtained in the course of providing services under this Agreement shall be confidential, and each party’s employees, volunteers, agents, and officers shall comply with state and federal requirements regarding confidentiality of patient information (including, but not limited to, section 5328 of the Welfare and Institutions Code; Civil Code section 56.10; the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and the regulations adopted pursuant thereto; Title 42, Code of Federal Regulations, Part 2; and Title 45, Code of Federal Regulations, section 205.50). All applicable regulations and statutes relating to patients’ rights shall be adhered to.
B. Notwithstanding the foregoing, either party may disclose Confidential Information in response to a request under the California Public Records act (“PRA”) provided that (i) The disclosing party gives written notice to the other party of the PRA request promptly upon receipt; (ii) The other party has four (4) business days from receipt of such notice to seek a protective order or other appropriate remedy to prevent disclosure; (iii) If the other party does not initiate legal action within the specified period, the disclosing party may release the requested information in compliance with the PRA. The party receiving a PRA request shall cooperate with the other party in any legal action to prevent disclosure, including providing affidavits, declarations, or other evidence as necessary to support the other party’s efforts to maintain confidentiality. Notice of such PRA request shall be given per Section 18.A. and, in the case of notice to County, shall also be immediately sent via email to [email protected] or in the case of notice to City, shall also be immediately sent to [email protected].
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Section 24. SCOPE AND OWNERSHIP OF WORK
All research data, reports, and every other work product of any kind or character arising from or relating to this Agreement shall become the property of the County and be delivered to the County upon completion of its authorized use pursuant to this Agreement with the exception of informal communications such as emails and staff notes, whether those communications or notes are internal to City’s staff or between City and any subconsultants. County may use City’s such work products for any purpose whatsoever.
County acknowledges that its alteration of documents without consent of City, or use of the documents for any purpose unrelated to this Agreement’s purposes, is at the County’s own risk and without liability to City. All works produced under this Agreement shall be deemed works produced by a contractor for hire, and all copyright with respect thereto shall vest in the County without payment of royalty or any other additional compensation.
Notwithstanding anything to the contrary contained in this Agreement, City shall retain all of City’s rights in City’s own proprietary information, including, without limitation, City’s methodologies and methods of analysis, ideas, concepts, expressions, know how, methods, techniques, skills, knowledge, and experience possessed by City prior to, or acquired by City during the performance of this Agreement and City shall not be restricted in any way with respect thereto.
Section 25. USE OF COUNTY PROPERTY
City shall not use County premises, property (including equipment, instruments, and supplies), or personnel for any purpose other than as contemplated in this Agreement and necessary in the performance of City’s obligations under this Agreement.
Section 26. COUNTERPARTS/ELECTRONIC, FACSIMILE, AND PDF SIGNATURES This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute 1 instrument. Each Party of this Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal.
Civ. Code §§ 1633.1 to 1633.17), for executing this Agreement. The Parties further agree that the electronic signatures of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures.
Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among Parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the Parties.
For purposes of this Section, a digital signature is a type of "electronic signature" as defined in subdivision (h) of section 1633.2 of the Civil Code. Facsimile signatures or signatures transmitted via pdf document shall be treated as originals for all purposes.
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IN WITNESS WHEREOF, County and City have executed this Agreement on the dates set forth below. By their signatures below, each signatory represents that they have the authority to execute this Agreement and to bind the Party on whose behalf their execution is made.
COUNTY OF SHASTA
Date:
DAVID J. RICKERT
County Executive Officer
County of Shasta
State of California
APPROVED AS TO FORM: RISK MANAGEMENT APPROVAL
JOSEPH LARMOUR
County Counsel
By: By:
Todd Endres Dolyene Lane
Deputy County Counsel Risk Manager
CITY OF REDDING
Date: By:
William S. Tarbox
City Manager
Date: By:
Brian Barner
Police Chief
Approved as to form:
Date: By:
Benjamin L. Stock
Interim City Attorney
Packet Pg. 104 Attachment: Mobile Crisis MOU - Final (4.9(a)--Memorandum of Understanding with Shasta County: Crisis Intervention Response Team)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve cancellation of the Public Hearing set for June 16, 2026, at 6:00 p.m., in the City Council Chambers, 777 Cypress Avenue, Redding, California, to consider adjustments to the City of Redding’s Schedule of Fees and Service Charges, as previously approved by the City Council at its meeting on May 19, 2026. This will be rescheduled for a future date.
Background/Analysis
A consent item was approved by the Council on May 19, 2026, to schedule a Public Hearing to discuss the City of Redding’s Schedule of Fees and Service Charges, which includes only those fees that have recommended adjustments or have changed by Consumer Price Index (CPI) or Construction Cost Index (CCI). Late noted changes need to be made to the Schedule, therefore, the Public Hearing for June 16, 2026, is cancelled. This will return for scheduling at the July 21, 2026, Council meeting.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Council Priority/ City Manager Goals
• This is a routine operational item.
MEETING DATE: June 2, 2026
ITEM NO. 4.10(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.10(a)--Cancel Public Hearing regarding adjustments to Schedule of Fees and Service Charges
Greg Robinett, Director of
Finance/City Treasurer
Packet Pg. 105
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to the City of Redding Tarmac Road Storm Drain Emergency Replacement Project (Project):
(1) Accept update regarding the Project; and
(2) Pursuant to Public Contract Code Section 22050(c)(1), make a determination by a fourfifths vote that there is a need to continue the emergency work.
Fiscal Impact
The Tarmac Road Storm Drain Emergency Replacement Project (Project) is being funded by a Wastewater loan to the Storm Drain Utility. The current total project cost is estimated to be $4,150,000.
The City of Redding (City) received notification from the State on March 10, 2026, that the Governor declared emergency for the 2025 Late December Storm (CDAA 2026-02) is eligible for California Disaster Assistance Act (CDAA) funding, making this Project eligible for funding.
If the CDAA funding is approved, then 75 percent of the project cost may be reimbursed to the City by the State. The remaining City cost share of 25 percent would still be loaned to the Storm Drain utility by Wastewater.
Alternative Action
The City Council (Council) may choose not to accept the project update and provide alternative direction to staff.
MEETING DATE: June 2, 2026
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(a)--Update for the City of Redding Tarmac Road Storm Drain Emergency Replacement Project.
Michael Webb, Assistant City
Manager/Public Works
Director
Packet Pg. 106
Report to Redding City Council May 28, 2026
Re: 4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement Project Page 2 Background/Analysis
On April 7, 2026, Council adopted an emergency resolution for the project and authorized the negotiation of emergency contracts. The project proposes to replace the failed existing 20-foot by 6-foot natural bottom arch culvert with a 10-foot by 7-foot cast-in-place reinforced concrete box culvert. The work includes reconstruction of the Tarmac Rd embankment, curb and gutter, sidewalk, asphalt concrete and other miscellaneous items of work.
Staff is coordinating and planning with J.F. Shea Construction Inc. for the construction of the Project. Current Project activities include but are not limited to utility coordination with PG&E for temporary relocation of gas main, identifying potential temporary water main routing, preparation of exhibits required to obtain permits from regulatory agencies, planning for traffic control and beginning operations for staged temporary access and earthwork. The public has been notified of the impending construction activities.
Environmental Review
This action is not a project as defined by the California Environmental Quality Act (CEQA) and no further action is required. On April 7, 2026, Council determined that the project is statutorily exempt from environmental review und the CEQA Guidelines, pursuant to Section 15269(b)- Emergency Projects.
Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding” Attachments
Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd. Storm Drain Emergency
Packet Pg. 107
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to the City of Redding Tarmac Road Storm Drain Emergency Replacement Project (Project):
(1) Adopt Resolution, by not less than four-fifths affirmative vote, to declare an emergency and authorize the City Manager, or designee, to negotiate an emergency public works contract for the project in an amount not-to-exceed $3,500,000; (2) Authorize construction contingency amount up to a total of $300,000; (3) Approve $50,000 to cover costs for project development; (4) Approve $300,000 to cover costs for construction management and inspection fees; (5) Adopt Resolution approving and adopting the 33rd Amendment to City Budget Resolution No. 2025-049 appropriating $4,150,000 for said purpose; and (6) Find that the Project is exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15269(b) – Emergency Projects.
Fiscal Impact
There have been approximately $55,000 in initial expenses for the project to date for emergency protective measures and engineering. However, due to further inspection, engineering and revised costs estimates the Storm Drain utility does not have sufficient funds to budget for this Project. Therefore, the attached budget resolution is for the Wastewater Utility to provide a loan that will be paid annually, every June 30th and will be amortized annually over a 20-year term at the average pooled cash rate calculated at the time of payment.
MEETING DATE: April 7, 2026
ITEM NO. 9.11(g)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.11(g)--Consider adopting Resolution declaring an emergency for the City of Redding Tarmac Road Storm Drain Emergency Replacement Project, and associated budget Resolution.
Michael Webb, Public Works
Director/Interim Asst. City
Manager
APPROVED
Packet Pg. 108 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
Report to Redding City Council April 2, 2026
Re: 9.11(g)--Declare Emergency for the Tarmac Rd Storm Drain Emergency Replacement Project Page 2
The City received notification from the State on March 10, 2026, that the Governor declared emergency for the 2025 Late December Storm (CDAA 2026-02) is eligible for California Disaster Assistance Act (CDAA) funding, making this Project eligible for funding. If the CDAA funding is approved, then 75 percent of the project cost may be reimbursed to the City of Redding (City) by the State. The remaining City cost share of 25 percent would still be loaned to the Storm Drain utility by Wastewater according to the terms above.
The following table provides a summary of the estimated costs for the project:
Cost Summary1
Item Incurred Costs to
Date2
Estimate of
Emergency Repairs
Total Current
Estimate
Project Development
Costs
$30 $20 $50
Construction Contract $253$3,475 $3,500
4 Contingency $300 $300
Construction Management $300 $300
Total Project Costs $55 $4,095 $4,150
Notes:
1All amounts are in $1,000’s
2Amounts include City staff time and emergency stabilization efforts/activities completed under contract 3Amount paid to contractor for emergency stabilization efforts/activities under the current contract ($200K not-to-exceed amount)
4Updated contract amount to include adequate resources to complete the required emergency repairs Project cost components are estimates and some shifting of the project development, construction management, and construction contingency funds may be necessary to balance the project within the approved budget.
Alternative Action
The City Council (Council) may choose not to adopt the emergency resolution and direct staff to proceed with repairs through the regular Public Contract Code process or provide alternate direction. These processes carry the risk of being too untimely if the City is to immediately protect the public health and safety by restoration of public services and facilities.
If an alternative action is approved staff requests that the budget resolution be adopted to proceed with the Project.
Background/Analysis
On December 21, 2025, a meteorological event known as a convergence line appeared over the City and outlying areas which released an enormous quantity of water consistent with what is calculated to be a once in every 50-year storm. On December 22, 2025, Interim City Manager Kari Kibler, in her role as the Director of Emergency Services, proclaimed that a local emergency existed throughout the City of Redding. Consistent with State law, Redding Municipal Code and City policies, Council held a special meeting on December 26, 2025, to confirm and ratify the Director of Emergency Services’ Proclamation.
APPROVED
Packet Pg. 109 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
Report to Redding City Council April 2, 2026
Re: 9.11(g)--Declare Emergency for the Tarmac Rd Storm Drain Emergency Replacement Project Page 3
On or about December 21, 2025, City crews observed significant failure of a 20-foot by 6-foot natural bottom arch culvert and roadway embankment along Tarmac Road potentially jeopardizing the entire embankment and access for Autumn Glenn Subdivision. Tarmac Road serves approximately 50 residences and is the sole access point other than a narrow emergency access easement on private property. Attached are pictures of the failure and interim protective measures described below.
Staff has contracted with J.F. Shea Construction Inc. for the construction of protective measures and potentially repair. J.F. Shea, a local contractor, was selected based on their technical knowledge, resource availability, and previous performance on emergency projects of similar size and scope. The contract is to provide temporary emergency protective measures including but not limited to slope grading, culvert inlet stabilization, placement of rock slope protection and plastic sheathing to prevent further slope erosion and destabilization of the fill slope supporting Tarmac Road. Construction activities started on December 30, 2025, and the work was completed on December 31, 2025, prior to additional forecasted atmospheric storm events for New Year’s Weekend. Approximately $25,000 have been spent to date. The contractor and the City have continued to monitor the temporary work to assure any additional protective measure are implemented as required. In addition, already having an executed contract with J.F.
Shea will significantly increase their ability to mobilize immediately instead of waiting to secure bonds, insurance and execute contracts.
City engineering staff in cooperation with the Storm Drain utility, contractor, and vendors have been assessing the condition of the arch culvert and roadway. Visual inspections have revealed significant scour erosion of the natural bottom of arch culvert footings throughout and failure of the footing close to the midpoint of the culvert. The embankment slope continues to slough and cracks along the eastbound shoulder and sidewalk are continuing to slowly increase. Staff evaluated a solution to salvage the existing culvert, however due to the extensive scour and damage to the culvert and loss of embankment it was determined that full replacement of the arch culvert with a concrete box culvert was the best solution. Replacement would allow for the roadway embankment to be reconstructed and the box culvert would provide hazard mitigation of future failure due to the concrete bottom of the new culvert. The project will also include concrete headwalls to protect the inlet of the culvert which was a primary cause of failure.
The Resolution seeks authorization to declare an emergency under RMC 4.22.120 and Public Contract Code sections 20168 and 22050. As such, a fourth-fifths vote of the Council will be required to adopt the resolution. Public Contract Code sections 20168 and 22050 collectively provide authority to repair or replace a public facility, and procure the necessary equipment, services and supplies for those purposes without competitive bidding. While notice and competitive bidding are very beneficial in non-emergency situations, these processes are entirely too untimely if we are to immediately protect the public safety by restoring public facilities. If the replacement is not completed prior to fall, 2026 rain season, then there is a potential for catastrophic failure of the culvert and roadway. Failure of the culvert and roadway would be a public access and safety crisis for the Autumn Glenn Subdivision.
It should be noted that RMC 4.22.120 delegates authority to the City Manager to make a finding that the emergency will not permit the delay resulting from a competitive solicitation of bids and that immediate action is necessary to respond to the emergency. In order to ensure Council oversight, RMC 4.22.120(C)(1) requires review of action under Public Contract Code sections 20168 and 22050 at every regular meeting until such time as the emergency ceases.
APPROVED
Packet Pg. 110 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
Report to Redding City Council April 2, 2026
Re: 9.11(g)--Declare Emergency for the Tarmac Rd Storm Drain Emergency Replacement Project Page 4
The Resolution has been approved as to form by the City Attorney.
Environmental Review
Staff has determined that the project is exempt from environmental review under the California Environmental Quality Act (CEQA), pursuant to Section 15269 – Emergency Project. The CEQA Section 15269 exemption includes emergency repairs to maintain, repair, restore, demolish, or replace property or facilities damaged or destroyed as a result of a disaster in a disaster-stricken area in which a state of emergency has been proclaimed by the Governor. The 2025 Late December Storms caused significant damage to land, structures, and critical infrastructure in Shasta County, and the California Governor signed a State of Emergency Proclamation for the 2025 Late December Storms on December 24, 2025.
Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding” Attachments
Location Map
Resolution - Declaring Emergency
Budget Resolution
Tarmac storm damage photos
NOE December 2025 Flooding Repairs
Previous Staff Report - Item no. 2.1 - 12/26/25 Council Meeting - Emergency Proclamation Reso. 2025-095 - Resolution Confirming Existence of a Local Emergency (1) State of California Proclamation of a State of Emergency (12/24/25) Request for CDAA Funding - Shasta County - 2025 Late December Storms - APPROVED
APPROVED
Packet Pg. 111 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
APPROVED
Packet Pg. 112 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
RESOLUTION NO. 2026-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING TO DECLARE AN EMERGENCY AND AUTHORIZE THE
CITY MANAGER TO AWARD EMERGENCY CONTRACTS FOR THE
TARMAC ROAD STORM DRAIN EMERGENCY REPLACEMENT
PROJECT
WHEREAS, Public Contract Code sections 20168 and 22050 and Redding Municipal Code 4.22.120(A)provide that, in the case of emergency, a public agency may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes without giving notice for bids to let contracts; and
WHEREAS, on or about December 21, 2025, staff was made aware that the 20-foot by 6-foot arch culvert storm water conveyance system under Tarmac Road failed a n d i s causing significant erosion and undermining of the roadway; and WHEREAS, Tarmac Road is critical for the Autumn Glenn Subdivision primary residential access with no other access other than a narrow emergency access on private property; and
WHEREAS, the roadway is vital to the Autumn Glenn Subdivision, public health, safety, and fire protection; and
WHEREAS, a competitive solicitation for bids is anticipated to require at least seven (7) months to design, advertise for bids, and award a contract for construction, after which construction would not occur until the summer 2027 due to the onset of the 2026 rain season; and WHEREAS, failure to complete the arch culvert replacement and roadway embankment repair prior to the 2026 rain season would significantly increase the risk of the total roadway failure and threaten the safety of the Autumn Glenn Subdivision.; and WHEREAS, protective measures of the embankment slope to accommodate the delay necessary for the competitive bidding process would not mitigate or eliminate the threat to persons or property;
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Council of the City of Redding finds that the recitals set forth above are true and correct and are hereby adopted as findings of fact.
2. The public interest and necessity require the immediate expenditure of public money to restore the storm water conveyance system to full capacity, protect the public health, safety and welfare, and prevent further damage to the roadway.
APPROVED
Packet Pg. 113 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
3. The City Council of the City of Redding therefore declares an emergency and authorizes the City Manager to award emergency contracts to replace the storm water conveyance system and repair Tarmac Road.
4. The action authorized herein shall be reviewed by the City Council at all regular meetings of the Council until such time as the City Council determines that the emergency is abated.
I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 7th day of April, 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 BENJAMIN L. STOCK, Interim City Attorney
APPROVED
Packet Pg. 114 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
RESOLUTION NO. 2026 - _____
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 33
rdAMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049
APPROPRIATING $4,150,000 FOR THE TARMAC ROAD STORM DRAIN EMERGENCY REPLACEMENT PROJECT FOR FISCAL YEAR 2025-2026.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2025-049 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
241 6791 Tarmac Culvert Repair Storm
Drain
$4,150,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Decrease (Increase) Fund Balance
231-0000-2910000 Fund Balance 1,037,500
Increase (Decrease) Revenue
241-6791-3631701 State Grant Capitol 3,112,500
231-6301-3560001 Advances to Internal (1,037,500)
241-6701-3560002 Advances to Internal 1,037,500
Increase Expenditures
241-6791-6000302 Tarmac Culvert Repair Storm
Drain 4,150,000
Total $ 4,150,000 $ 4,150,000
THAT the purpose is to appropriate $4,150,000 for the Tarmac Road Storm Drain Emergency Replacement Project for Fiscal Year 2025-2026.
APPROVED
Packet Pg. 115 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 7th day of April, 2026, and was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MIKE LITTAU, Mayor
ATTEST: FORM APPROVAL:
SHARLENE TIPTON, City Clerk BENJAMIN L. STOCK, Interim City Attorney
APPROVED
Packet Pg. 116 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
APPROVED
Packet Pg. 117 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
APPROVED
Packet Pg. 118 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
APPROVED
Packet Pg. 119 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
APPROVED
Packet Pg. 120 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
APPROVED Packet Pg. 121
Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution to confirm and ratify the Proclamation of the Director of Emergency Services declaring a local emergency.
Fiscal Impact
Adoption of the resolution could have a positive fiscal impact of an indeterminate amount as it will facilitate the recovery of the community and the receipt of emergency aid from state, and possibly federal, authorities if it becomes available.
Alternative Action
The City Council (Council) could choose not to adopt the resolution or provide alternate direction. Failure to adopt the resolution will result in a legal finding that the local emergency has ceased and will likely negatively impact the receipt of aid from state and/or federal authorities, and the City of Redding’s (City) ability to immediately repair or replace damaged infrastructure.
Background/Analysis
On December 21, 2025, a storm event arrived in the City of Redding, ultimately causing conditions beyond the immediate control of local resources, services, personnel, equipment, and facilities. These winter storms have brought heavy rain to all areas of Shasta County resulting in localized flooding, water rescues, and damage to roadways, storm water systems, and other infrastructure. The current forecast calls for continued storms and rainfall which could further exacerbate flooding and increase the difficulty of recovery efforts.
MEETING DATE: December 26, 2025
ITEM NO. 2.1
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 2.1--Consider Resolution to confirm and ratify the City of Redding Proclamation declaring a local emergency due to flooding.
Kari Kibler, Interim City
Manager/Personnel Director
APPROVED
Packet Pg. 122 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
Report to Redding City Council December 24, 2025
Re: 2.1--Adopt Resolution to Confirm and Ratify the Proclamation Declaring a Local Emergency Page 2
Due to these events and weather conditions, a local emergency was proclaimed on December 22, 2025, and it is recommended that the Council ratify this proclamation and continue the declaration until such time that the threat of these storms has subsided, there is no longer an elevated risk to life and property, and the emergency restoration of facilities has been completed.
The local emergency was declared by the City Manager serving in her capacity as Director of Emergency Services under Redding Municipal Code (RMC) section 9.12.030. The Proclamation of the Director of Emergency Services is attached.
Pursuant to Government Code section 8630, the Proclamation is valid for seven days. As such, if the Council does not act to adopt a resolution which confirms and ratifies the existence of a local emergency, the declaration of local emergency made under the Proclamation will lapse. A declaration of local emergency provides several benefits in time of emergency. Under Government Code section 8634, it permits a local agency to immediately promulgate orders and regulations necessary to protect the public health and safety. It further permits the State and local agencies to provide mutual aid to the City and makes the costs of such aid incurred by other agencies chargeable to the State. Lastly, the declaration of local emergency facilitates payment to the City by the State under the Disaster Assistance Act (Gov. Code section 8680 et seq.).
The resolution contains all the needed findings to continue the declaration of local emergency under the California Emergency Services Act (Government Code section 8550 et seq.). In the absence of action under Public Contract Code, the Council could declare an emergency under the California Emergency Service Act by a simple majority vote.
The resolution contains all the needed findings to continue the declaration of local emergency under the California Emergency Services Act (Government Code section 8550 et seq.). In the absence of action under Public Contract Code, the Council could declare an emergency under the California Emergency Service Act by a simple majority vote.
Environmental Review
This is not a project as defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
^Resolution - Local Emergency Declaration December 2025 ^Proclamation - Emergency Declaration Flood of December 2025
APPROVED
Packet Pg. 123 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
RESOLUTION NO. 2025-_____
RESOLUTION CONFIRMING EXISTENCE OF A LOCAL EMERGENCY
WHEREAS, Government Code section 8642 provides that whenever a state or local emergency exists, the governing body of the local governmental entity shall meet as soon as possible; and WHEREAS, Redding Municipal Code sections 9.12.030, and 14.24.020, generally empower the City Manager, as Director of Emergency Services, to proclaim the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity and the City Council is not in session; and
WHEREAS, Redding Municipal Code section 9.12.030(C) provides that the decision of the City Manager to declare a local emergency must be ratified by the City Council within seven (7) calendar days of the City Manager’s action or it shall have no further force or effect; and WHEREAS, the City Manager, as Director of Emergency Services of the City of Redding, proclaimed the existence of a local emergency, as defined in Government Code section 8558(c), within the City on the 22nd day of December, 2025, as evidenced by the Proclamation of the Director of Emergency Services attached and incorporated herein; and
WHEREAS, the Proclamation of the Director of Emergency Services dated December 22, 2025, was sent to the County Director of Emergency Services on December 22, 2025; and WHEREAS, conditions of extreme peril to the safety of persons and property have arisen within the City which were caused by flooding caused by severe winter storms which began on December 21, 2025; and WHEREAS, the conditions caused by the flooding are beyond the control of the services, personnel, equipment and facilities of the City of Redding; and
WHEREAS, the National Weather Service and other forecasting agencies have advised that additional significant storm systems are expected to impact the region in the coming days, bringing continued heavy rainfall, high winds, and the potential for additional flooding; and WHEREAS, the cumulative impacts of successive storm systems pose an ongoing and imminent threat to the health and safety of residents, emergency responders, and public infrastructure within the City; and WHEREAS, the City Council hereby finds that the aforesaid conditions of extreme peril did warrant and necessitate the proclamation of the existence of a local emergency; NOW, THEREFORE, IT IS HEREBY PROCLAIMED AND ORDERED as follows:
1. The recitals stated above are true, correct, and are adopted herein.
2. The Proclamation of the Director of Emergency Services dated December 22, 2025, is hereby confirmed and ratified.
3. That, pursuant to Government Code section 8630(a), a local emergency within the meaning of Government Code section 8558(c) exists within the jurisdictional limits of the City of Redding.
APPROVED
Packet Pg. 124 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
4. That, pursuant to Government Code section 8630(c) the City Council shall review the need for continuing the local emergency at least once every sixty (60) days until the City Council terminates the local emergency.
I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a Special meeting of the City Council of the City of Redding on the 26th day of December, 2025, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
__________________________________
MIKE LITTAU, Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney
APPROVED
Packet Pg. 125 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
APPROVED Packet Pg. 126
Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd. soL T1oN No, o s- a
sc uT aN cc N N+ x sT rc aF a. ocaL n Ex E vc
WHE AS, Gc vernrnent Code section 8642 pravides that whenever a state c r local emergency exists, the goveming body of the lacal governmental entity shall meet as soc n as passible; nd WHE AS, Redding Municipal Code sectic s 9. 2. 030, and 14. Z4. 02t, generally empower the City Manager, as I irector of Emergency Services, to proclaim the existence c r threatened existence of a local emergency when the City is affected ar likely to be affected by a public calamity and the City Council is nat in session; and
WHEREAS, Redding Municipal Code sectic n 9. 12. 430( Cj provides that the decision of the City Manaber to declare a local emergency rnust be ratified by the City Counneil within seven( 7) calendar days af the City Manager' s actian or it sh ll have nc further force ar effect; and WHE AS, the City Manager, as Directt r of Emergency Services of the City af Redding, proclaimed the existence ofa l+cal emergency, as defined in Government Code sectio 1855( c), within the City on the 22" a day of I)ecember, 2025, as evidenced by the Proclarriation of the Director of Emergency Services attached and incorporated herein; and
WHE12EA5, the Prociamation Qf the Director of Emergency Services dated December 2, 2 25, was sent ta the Cc unty Director af Emergenc Services on I ecember 22, 2025, and WHE AS, cond tions of extreme peril tc the safety of persons and property haVe aris n within the City which were caused by flooding caused iy severe winter torms which began on December 21, 2025; and E AS, the conditions aused by the floc ding are b yond the contral of the services, persoz nel, equipment a d facilities of the City crf Redding; and
WHE ' AS, the National Weather Service atid other fc recasting agencies ha e advised that additianal significant starm systems are expected to irnpact the region in the coming days, bringing continued heaVy rainfall, high winds, and the pc ter tial for additional floc c ing; and WHE AS, the cumulative impacts of succ ssive storm systems pose an ongoing and imminent thr at to the health and safety of residents; m rgency respt nders, and public infrastructure within the City; and WHE ' AS, the City Councii hereby finds that the aforesaid c nditic ns of extreme peril did warrant and necessitate the proclamation of the existence of a local emergency; N(7W, THE FO , IT IS HE S*1'' PI20+CLAIMED 1 ND O ERED as follows:
1. The recitals stated above are true, cc7rrect, and are adapted herein.
2. The Proclamation of the Directar of Emergency Services dated December 22, 2025, is hereby canfrmed and ratified,
3_ That, pursuant to Government Cade sectit n 8630( a); a local emergency within the meaning of Government Cc de section 855$( c) exists within the jurisclictional limits of the City of Redding.
APPROVED
Packet Pg. 127 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
4. That, pursuant to Government Code section 863( c) the City Council shall review the need for continuing the local emergency at least once every sixty( 60) days until the City Council terminates the local emergency.
I HEREBY CERTIFY that the fc regaing resolution was introduced and adopted at a special meeting of the City Council of the City c f Redding on the 26th day of December, 2025, by the fallowing vote:
AYES: CtJUN IL ME E12; - Audette, Dhanuka, Munns, Resner, and L ttau NOES. COUNCIL ME ' ERS. - None
ABSENT: COUI TCIL ME ' ERS. - 1Vone
ABSTATN: CO UNCIL ME ERS. - None
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1VIIKE LITTAU, Mayar
ATTEST: APPROVED AS TC} FC?RCVI:
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SHARLENE TIpT City Clerk C STIAN M. CITRTIS, City Attarney
APPROVED
Packet Pg. 128 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
A PR4 LAMATI aF
THE I) E TUR ()' E RGEIV Y SERVICES f F THE
T'' C1F I2EDDING, C LIFt71 NIA
i HEREAS, Redding Municipal C de { RMC) sections 9. 12. 030, and 9. 12.t 2U, provide far the preparati n and cartying c ut of plans far the protection of persons and property within the City in the event csf an emergency;
ERE iS, RMC section 9. 12. 03Q states that the City Manager is tihe I irectot of Emergency services and the Assistant City Manager is the Assistant I irector of Emergenc Services 6 HEREAS; RMC ectian 9: 12. fl30 empowers the Director or Assistant Dire tor of E nergency Services tc proclaim the existence of threatened existence af a local emergency when the City Council is not in session;
1 HERE S, the Director af Emer ency Serviees of the City af Redding does hereby find that condieians af extrerne peril to the safety of persons and roperty have arisen within the City c f Redding, caused by floociing, which began an the 2i$t
day of Llecesnber 2025;
HERE IS, these c nditians are or are tikely to be beyond the control of the services, personnel, equrprnent, and facilities of the City of R dding;
Y HERE,4S, the City Cr uncil of the City af Redding is nc t in sessic n and cannot innrnediately be called intc session; and I
NOW, TH REFDRE, IT I,S HEREBY PRG CLAI EU, that a lacal ernergency now exists:
thraughout the ity af Redding; and I
I' IS FURT ER` P:RU L.AIMEL NL UR? ERED that during the existence af' said local emergency, the powers, functions, and duties of the rnergency organization f the City of Redding shal] tht se prescribeci by the stat law, by ordinanc s, and resolutions of the Citiy crf Redding, and that this err ergency proclamatic n shail expire seven{ 7) days after issuance unless confitmed and ratified by the City Cauncil c f the ity of R.edding;
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1 APPROVED
Packet Pg. 129 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
APPROVED
Packet Pg. 130 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd. Storm Drain Emergency (4.11(a)--Update for the
APPROVED
Packet Pg. 131 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd. Storm Drain Emergency (4.11(a)--Update for the
APPROVED
Packet Pg. 132 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd. Storm Drain Emergency (4.11(a)--Update for the
GAVIN NEWSOM
GOVERNOR
CHRISTINA CURRY
ACTING DIRECTOR
3650 SCHRIEVER AVENUE, MATHER, CA 95655
(916) 845-8506 TELEPHONE
www.CalOES.ca.gov
March 10, 2026
The Honorable Chris Kelstrom
Chair, Shasta County Board of Supervisors
1450 Court Street
Redding, CA 96001
Subject: Shasta County – 2025 Late December Storm – Request for California Disaster Assistance Act Funding
Dear Chairperson Kelstrom:
This letter is in response to Shasta County’s request for financial assistance under the California Disaster Assistance Act (CDAA) due to the impacts of the 2025 Late December Storm.
In accordance with the California Emergency Services Act, the Governor declared a State of Emergency to exist in Shasta County on December 24, 2025, for the 2025 Late December Storm. To help the impacted communities recover from the event, CDAA funding is authorized for Shasta County for the 2025 Late December Storm (CDAA 2026-02). My staff will contact your authorized agent on record under separate cover to provide the forms necessary to apply for reimbursement utilizing the CDAA Program.
Please know Cal OES will continue to work closely with your team during the recovery efforts. Feel free to contact [email protected], if you have additional questions or would like to discuss this matter further.
Sincerely,
ROBYN FENNIG
Deputy Director, Recovery
cc: Rob Sandblom, Lieutenant, Shasta County Office of Emergency Services David J. Rickert, County Executive Officer, Shasta County Thomas Graham, Regional Administrator, Inland Region Response, Cal OES Docusign Envelope ID: 06443928-5970-493A-A4D2-5CB79668A6A6
APPROVED
Packet Pg. 133 Attachment: Previous Staff Report - Item no. 9.11(g), April 7, 2026, Consider adopting resolution declaring emergency for COR Tarmac Rd.
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions regarding the Highway Bridge Program (HBP) grant funding from the State of California, Department of Transportation:
(1) Accept additional $248,770 awarded to the City of Redding for the Eastside Road Bridge over Canyon Hollow Project (Project); and
(2) Adopt Resolution approving and adopting the 38th Amendment to City Budget Resolution No. 2025-049 appropriating $248,770 of HBP Funds and $32,230 of Traffic Impact Fee Funds for a total of $281,000 for the Project.
Fiscal Impact
An additional $248,770 in Highway Bridge Program (HBP) grant funds has been allocated to the City of Redding (City) for the Eastside Road Bridge over Canyon Hollow Creek Project (Project) in order to complete design and advertise the Project. The HBP requires an 11.47 percent ($32,230) local funds match, which staff has identified as Traffic Impact Fee (TIF) funds.
Previous Project allocations for preliminary engineering, environmental and right-of-way total $619,000 ($548,000 HBP and $71,000 TIF).
Alternative Action
The City Council (Council) may choose not to accept the additional grant funding. In this case, the City would forfeit $248,770 in grant funding for the project and additional City funds would need to be identified in order to complete the project. Alternatively, the Council could choose not to proceed with the project and the City would need to reimburse the State of California for costs incurred to date.
MEETING DATE: June 2, 2026
ITEM NO. 4.11(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(b)--Accept Grant Funds from the State of California Department of Transportation and Adopt Budget Resolution Appropriating Funds Michael Webb, Assistant City
Manager/Public Works
Director
Packet Pg. 134
Report to Redding City Council May 28, 2026
Re: 4.11(b)--Accept Grant Funds and Adopt Budget Resolution for Eastside Road Bridge over Canyon Hollow Page 2
Background/Analysis
The project is located on the east side of State Route 273, approximately 650 feet south of the intersection of State Route 273 and Buenaventura Boulevard. The project will replace the existing Eastside Road Bridge with a new two-lane, two-span cast-in-place reinforced concrete slab bridge. The proposed structure will provide two 12-foot travel lanes, 8-foot shoulders, one 6-foot-wide sidewalk, and concrete barriers. Approximately 300 feet of roadway will be reconstructed at both approaches to conform to the new bridge. Construction of the bridge will be staged to allow a single lane of alternating traffic, controlled by temporary signals.
Unanticipated additional coordination with Union Pacific Railroad (UPRR) and CalTrans regarding project sequencing, staging, and drainage design resulted in the need for additional preliminary engineering activities.
Environmental Review
This action, accepting additional grant funding, is not a project as defined by the California Environmental Quality Act (CEQA). On June 16, 2020, the Council adopted the Mitigated Negative Declaration, the Mitigation Monitoring Program, and approved the Eastside Road and Westside Road Bridge Replacement Projects, thereby satisfying the requirements of CEQA (CEQA Guidelines §15074). No further action is required.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
Budget Resolution
Previous Staff Report 6-16-2020
Location Map
Packet Pg. 135
Resolution No. 2026 - ____________
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 38TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049
APPROPRIATING $248,770 IN ADDITIONAL HIGHWAY BRIDGE PROGRAM (HBP) GRANT FUNDS AND $32,230 IN ADDITIONAL TIF FUNDING FOR THE EASTSIDE ROAD OVER CANYON HOLLOW BRIDGE PROJECT FOR FISCAL YEAR 2025-26.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2025-049 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
151
151
1671
1691
Transportation Grants
Traffic Impact Fee Capital
$248,770
$32,230
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Increase (Decrease) Revenue
151-1671-3608005-00000 Federal Grant Capital $ 248,770
151-0000-2910000-00000 Fund Balance $ 32,230
Increase Expenditures
151-1671-7700010-00000 Bridges $ 248,770
151-1691-7700010-00000 Bridges $ 32,230
Total $ 281,000 $ 281,000
THAT the purpose is to appropriate $281,000 in additional funding for the Eastside Road over Canyon Hollow Bridge project for the fiscal year 2025-2026.
I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 2nd day of June, 2026 and was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MIKE LITTAU, Mayor
ATTEST: FORM APPROVAL:
SHARLENE TIPTON, City Clerk BENJAMIN L. STOCK, City Attorney Packet Pg. 136 Attachment: Budget Resolution (4.11(b)--Accept Grant Funds and Adopt Budget Resolution for Eastside Road Bridge over Canyon Hollow)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Adopt the Mitigated Negative Declaration ( MND), the Mitigation Monitoring Program ( MMP), and approve the Eastside Road and Westside Road Bridges Replacement Project ( Project) as described, thereby satisfying the requirements of the California Environmental Quality Act CEQA Guidelines §15074).
Fiscal Impact
Adoption of the Mitigated Negative Declaration (MND) and the Mitigation Monitoring Program MMP) allows the project to move toward the final design and construction phases. There is no fiscal impact as a direct result of adopting the Mitigated Negative Declaration and Mitigation Monitoring Program.
The Eastside Road bridge replacement is estimated to cost $ 2,683, 200, and the Westside Road bridge replacement is estimated to cost $2,985,612. Approximately 88 percent of the cost for the Project will be funded through a grant from the Federal Highway Bridge Program. The remaining $650,000 will be a local match from the Traffic Impact Fee Program.
Alternative Action
The City Council (Council) can choose to not adopt the MND and the MMP. Without approval, the project would not proceed, as it would not be in compliance with the California Environmental Quality Act (CEQA). Future opportunities for Highway Bridge Program grant funding would also be jeopardized.
MEETING DATE: June 16, 2020
ITEM NO. 4.11(b)
FROM:
APPROVED BY***
[email protected] btippin@cityofredding. org
SUBJECT: 4.11(b)--Adoption of the Eastside Road and Westside Road Bridges Replacement Project, Mitigated Negative Declaration, and the Mitigation and Monitoring Program Chuck Aukland, Public
Works Director
Packet Pg. 137 Attachment: Previous Staff Report 6-16-2020 (4.11(b)--Accept Grant Funds and Adopt Budget Resolution for Eastside Road Bridge over Canyon Report to Redding City Council June 8, 2020
Re: 4.11( b)--Eastside Road and Westside Road Bridges Replacement Project Page 2 Background/Analysis
The project is located on the east side and west side of State Route 273, respectively, approximately 650 feet south of the intersection of State Route 273 and Buenaventura Boulevard. The project will replace the existing Eastside Road Bridge with a new two-lane, twospan cast- in-place reinforced concrete slab- bridge. The proposed structure will provide two 12- foot travel lanes, 8-foot shoulders, one 6-foot wide sidewalk, and concrete barriers.
Approximately 300 feet of roadway will be reconstructed at both approaches to conform to the new bridge.
The Westside Road Bridge will be replaced with a new two- lane, three- span cast- in-place reinforced concrete slab-bridge. The proposed bridge will provide two 12-foot travel lanes, 4- foot shoulders, one 6-foot wide sidewalk, and barriers. The roadway will be reconstructed approximately 175 feet to the south and 325 feet to the north to conform to the new bridge.
Construction of both bridges will be staged to allow a single lane of alternating traffic, controlled by temporary signals.
The in-channel work area extends approximately 25 feet upstream and downstream of the new bridges to allow access into the channel during construction and underground utility relocations.
Additional project work includes extending the sidewalk along select approaches, storm drain modification, paving, striping, and sign installation. Specifically, Pacific Gas and Electric PG& E) gas lines, City of Redding (City) water lines, and AT&T underground phone and fiber lines would require relocation at the proposed Eastside Road Bridge and Westside Road Bridge.
The PG&E gas line relocations and AT&T underground will require trench excavation depths up to approximately 12 feet deep.
Two staging areas are proposed for the project. The first staging area is within a disturbed dirt area located at the northeast quadrant of the Eastside Road Bridge. The second staging area is a paved section of abandoned roadway located 130 feet north of the Westside Road Bridge.
Roadway and structure improvements fall within City and private right -of-way. It is anticipated the project will require temporary construction easements, and encroachment permits/agreements will be obtained from California Department of Transportation ( Caltrans) and the Union Pacific Railroad for construction access. The Westside Road Bridge is anticipated to be built in 2021 , and would require two seasons of construction. The Eastside Road Bridge is anticipated to be constructed in 2022, and would also require two seasons of construction.
An Initial Study ( IS) was prepared to satisfy the requirements of the CEQA. It describes why the project is being proposed and the potential impacts to the existing environment. The IS shows that the proposed project could have a significant effect on biological resources, but with implementation of mitigation measures, those impacts will be reduced to a level considered less than significant. The mitigation measures and conservation measures to be implemented are common practices and include, but are not limited to, biological pre-construction surveys, impact minimization, exclusionary fencing, and erosion control.
Based on the conclusions made in the IS, a MND was prepared. The MND describes the project, including mitigation measures, and makes the determination that there will be no significant effect on the environment provided that the defined mitigation measures are implemented as part of the project. In addition, a MMP has been written and incorporated into the MND (CEQA Section 21081.6). The MMP will be used by City staff, contractors, agencies, and monitoring personnel during and after the project to ensure effective implementation of the adopted mitigation measures outlined in the MND.
Packet Pg. 138 Attachment: Previous Staff Report 6-16-2020 (4.11(b)--Accept Grant Funds and Adopt Budget Resolution for Eastside Road Bridge over Canyon Report to Redding City Council June 8, 2020
Re: 4.11( b)--Eastside Road and Westside Road Bridges Replacement Project Page 3 The IS/MND/MMP documents were sent to the State Clearinghouse for a 30 -day public review period and distribution to pertinent state agencies. They were sent to local resource agencies, the Shasta County Clerk, and posted on the Public Works Department website. A public notice was also sent to landowners in the vicinity of the project and posted in the local newspaper. Two comment letters were received during the public comment period. Responses to the comment letters have been prepared and are attached to the final MND.
The City is the lead agency for the project pursuant to CEQA. As the lead CEQA agency, the Council is authorized to adopt the MND per Redding Municipal Code Section §18.24.070.E and state law. Upon adoption of the MND and approval of the project by the Council, a Notice of Determination will be filed with the Shasta County Clerk’ s Office and the State Clearinghouse, completing the environmental review process.
The IS/MND is available in the City Clerk’ s office for review and is also available online at https://www.cityofredding.org/departments/public-works/environmental-management.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
Location Map
Mitigated Negative Declaration
Mitigation Monitoring Program ( available online)
Eastside & Westside Bridges Initial Study May 2020 ( available online) Packet Pg. 139 Attachment: Previous Staff Report 6-16-2020 (4.11(b)--Accept Grant Funds and Adopt Budget Resolution for Eastside Road Bridge over Canyon
CITY OF REDDING
LOCATION MAP
EXHIBIT A
PUBLIC WORKS Eastside Road Bridge over Canyon Hollow
DEPARTMENT
LOCATION
PROJECT X:\Projects\Eastside Rd at Canyon Hollow Bridge_2473\Design\Plans\Drawings\Exhibit.dwg, CC 8x11 (2), 5/15/2026 1:42:17 PM, daniels Packet Pg. 140 Attachment: Location Map (4.11(b)--Accept Grant Funds and Adopt Budget Resolution for Eastside Road Bridge over Canyon Hollow)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to Bid Schedule No. 5693 (Job No.
WAADM23056), Mistletoe Lane and Victor Ave Water Improvements Project:
(1) Award to Giles Excavating & Paving, Inc., in the amount of $1,615,072; (2) Approve an additional $275,000 to cover the cost of administration and inspection fees; (3) Approve $81,000 for project development costs;
(4) Approve $170,000 to provide construction contingency funding; (5) Authorize the City Manager, or designee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $100,000; and
(6) Find that the Project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 - Existing Facilities.
Fiscal Impact
The Mistletoe Lane and Victor Avenue Water Improvements (Project) is being funded by the Water Utility Division. The Water Utility has sufficient Fiscal Year 2025-26 budget for this project and its funding will not impact other activities or projects.
Cost Summary
Item Estimated
Project Development Costs $81,000
Construction Contract + Contingency $1,785,072
Contract Administration, Inspection, Testing $275,000
Additional City Manager Authority $100,000
Total Project Costs $2,241,072
Total Project Budget $2,250,000
MEETING DATE: June 2, 2026
ITEM NO. 4.11(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(c)--Award Bid Schedule No. 5693 (Job No. WAADM23056) Mistletoe Lane and Victor Ave Water Improvements Project
Michael Webb, Assistant City
Manager/Public Works
Director
Packet Pg. 141
Report to Redding City Council May 28, 2026
Re: 4.11(c)--Award BS No. 5693 Mistletoe Ln/Victor Ave Water Improvements Project Page 2 Project cost components are estimates and some shifting of the project development, construction management, and construction contingency funds may be necessary to balance the project within the approved budget.
Alternative Action
City Council may choose not to award the bid for the project and provide staff with alternate direction. Without this project, there is greater potential for increased maintenance costs, a decrease in reliability, and an increased risk of water main breaks for City of Redding (City) customers. In addition, these needed underground improvements would not be complete prior to the Victor Improvements Active Transportation Project (ATP), which will include roadway improvements in the project area scheduled for construction in 2028.
Background/Analysis
The City's water system includes approximately 2.98 million feet (565 miles) of conveyance and distribution pipelines of various pipe materials and sizes ranging from 1-inch to 48-inch.
Assessments of the City’s water distribution system indicate that the older steel and cast-iron pipelines have had the highest rates of failure in recent years. To reduce pipeline failures and maintenance costs and to improve reliability to its customers, the Water Utility has focused on replacing older steel and cast-iron piping. This project will replace approximately 4,300 feet of aging steel and cast-iron water mains that were installed in the 1970s. This project will replace the old steel and cast-iron piping with new polyvinyl chloride (PVC) and ductile iron piping to reduce future maintenance costs and provide reliable service in the area for the foreseeable future. Water services and fire hydrants will also be replaced as part of the project. The improvements were prioritized in order to complete the necessary work prior to construction of the Victor Improvements ATP project. This approach will ensure the integrity of the roadway is maintained following replacement of the asphalt concrete surface associated with the ATP project.
Attached is a tabulation of bids received and opened on May 14, 2026, for construction of the project. The low bid in the amount of $1,615,072 was received from Giles Excavating & Paving, Inc., of Anderson, California. The engineer's estimate was $1,926,540. Total project development costs for this project are estimated to be $81,000. Project development costs include engineering, surveying, right-of-way, environmental, and consultant services for the project.
Environmental Review
Staff has determined that the project is categorically exempt from environmental review under California Environmental Quality Act Guidelines, pursuant to Sections 15301 - Existing Facilities. Class 1 exemptions include the operation, repair, maintenance, or minor alteration of existing facilities, structures, or equipment involving negligible or no expansion of use. The existing utilities are aging and require replacement. The project will not result in expansion of use. The project has no potential to have a significant effect on the environment.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Packet Pg. 142
Report to Redding City Council May 28, 2026
Re: 4.11(c)--Award BS No. 5693 Mistletoe Ln/Victor Ave Water Improvements Project Page 3 Attachments
Location Map
Bid Tabulation
Notice of Exemption
Packet Pg. 143
CITY OF REDDING
LOCATION MAP
MISTLETOE LANE AND VICTOR AVE
PUBLIC WORKS WATER IMPROVEMENTS PROJECT
DEPARTMENT
PROJECT
LOCATION
Packet Pg. 144 Attachment: Location Map (4.11(c)--Award BS No. 5693 Mistletoe Ln/Victor Ave Water Improvements Project) BID TABULATION FOR:
Mistletoe Lane and Victor Avenue Water Improvements
Bid Schedule No.: 5693
ENGINEER'S EST
5/14/2026 UNIT UNIT UNIT
ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 Water Pollution Control LS 1 $10,000.00 $10,000.00 $20,075.00 $20,075.00 $2,750.00 $2,750.00 2 Traffic Control LS 1 $140,000.00 $140,000.00 $170,763.00 $170,763.00 $75,000.00 $75,000.00 3 Trench Sheeting & Shoring LS 1 $30,000.00 $30,000.00 $3,514.00 $3,514.00 $6,500.00 $6,500.00 4 Construction Area Sign EA 30 $500.00 $15,000.00 $183.00 $5,490.00 $400.00 $12,000.00 5 Project Funding Sign EA 1 $2,000.00 $2,000.00 $609.00 $609.00 $1,700.00 $1,700.00 6 Water (6" PVC, Slurry) LF 15 $500.00 $7,500.00 $440.00 $6,600.00 $950.00 $14,250.00 7 Water (8" PVC, Slurry) LF 4322 $220.00 $950,840.00 $185.00 $799,570.00 $210.00 $907,620.00 8 Water (12" DIP, Slurry) LF 19 $800.00 $15,200.00 $810.00 $15,390.00 $950.00 $18,050.00 9 Valve (8" Gate) EA 37 $4,000.00 $148,000.00 $3,547.00 $131,239.00 $4,250.00 $157,250.00 10 Valve (6" Gate) EA 1 $3,300.00 $3,300.00 $2,743.00 $2,743.00 $5,000.00 $5,000.00 11 Valve (12" Butterfly) EA 1 $7,000.00 $7,000.00 $5,670.00 $5,670.00 $7,350.00 $7,350.00 12 Valve (8" Pressure Reducing) EA 1 $25,000.00 $25,000.00 $35,047.00 $35,047.00 $68,000.00 $68,000.00 13 Fire Hydrant Assembly EA 9 $16,000.00 $144,000.00 $10,595.00 $95,355.00 $14,000.00 $126,000.00 14 Water Service (1") EA 46 $6,000.00 $276,000.00 $4,775.00 $219,650.00 $5,000.00 $230,000.00 15 Water Service (2") EA 6 $12,500.00 $75,000.00 $8,659.00 $51,954.00 $7,000.00 $42,000.00 16 Private Water Service (1") LF 55 $120.00 $6,600.00 $54.00 $2,970.00 $500.00 $27,500.00 17 Abandon Valve EA 14 $900.00 $12,600.00 $850.00 $11,900.00 $1,000.00 $14,000.00 18 Remove Valve EA 3 $1,500.00 $4,500.00 $1,941.00 $5,823.00 $2,000.00 $6,000.00 19 Water Main Creek Crossing LS 1 $50,000.00 $50,000.00 $29,438.00 $29,438.00 $61,000.00 $61,000.00 20 Bollard (Non-Removable) EA 4 $1,000.00 $4,000.00 $318.00 $1,272.00 $2,000.00 $8,000.00 TOTAL - CONTRACT ITEMS $1,926,540.00 $1,615,072.00 $1,789,970.00 Giles Excavating & Paving,
Inc. SnL Group, Inc.
Shaded areas indicate corrections made in accordance with the Special Provisions. Page 1 of 3 Packet Pg. 145 Attachment: Bid Tabulation (4.11(c)--Award BS No. 5693 Mistletoe Ln/Victor Ave Water Improvements BID TABULATION FOR:
Mistletoe Lane and Victor Avenue Water Improvem
Bid Schedule No.: 5693
5/14/2026
ITEM DESCRIPTION UNIT QTY
1 Water Pollution Control LS 1
2 Traffic Control LS 1
3 Trench Sheeting & Shoring LS 1
4 Construction Area Sign EA 30
5 Project Funding Sign EA 1
6 Water (6" PVC, Slurry) LF 15
7 Water (8" PVC, Slurry) LF 4322
8 Water (12" DIP, Slurry) LF 19
9 Valve (8" Gate) EA 37
10 Valve (6" Gate) EA 1
11 Valve (12" Butterfly) EA 1
12 Valve (8" Pressure Reducing) EA 1
13 Fire Hydrant Assembly EA 9
14 Water Service (1") EA 46
15 Water Service (2") EA 6
16 Private Water Service (1") LF 55
17 Abandon Valve EA 14
18 Remove Valve EA 3
19 Water Main Creek Crossing LS 1
20 Bollard (Non-Removable) EA 4
TOTAL - CONTRACT ITEMS
UNIT UNIT UNIT
PRICE TOTAL PRICE TOTAL PRICE TOTAL
$20,715.06 $20,715.06 $5,424.00 $5,424.00 $5,000.00 $5,000.00 $93,616.53 $93,616.53 $202,246.00 $202,246.00 $275,000.00 $275,000.00 $7,627.23 $7,627.23 $25,005.00 $25,005.00 $25,000.00 $25,000.00 $313.50 $9,405.00 $285.00 $8,550.00 $300.00 $9,000.00
$2,062.48 $2,062.48 $698.00 $698.00 $1,500.00 $1,500.00 $791.24 $11,868.60 $439.00 $6,585.00 $1,100.00 $16,500.00 $220.11 $951,315.42 $211.44 $913,843.68 $205.00 $886,010.00 $927.10 $17,614.90 $673.00 $12,787.00 $1,000.00 $19,000.00 $3,485.58 $128,966.46 $3,140.00 $116,180.00 $4,500.00 $166,500.00 $4,854.80 $4,854.80 $2,230.00 $2,230.00 $3,700.00 $3,700.00 $7,393.76 $7,393.76 $4,555.00 $4,555.00 $6,400.00 $6,400.00 $42,549.74 $42,549.74 $28,137.00 $28,137.00 $35,000.00 $35,000.00 $15,949.34 $143,544.06 $14,339.00 $129,051.00 $24,000.00 $216,000.00 $5,540.67 $254,870.82 $7,865.00 $361,790.00 $4,200.00 $193,200.00 $11,540.34 $69,242.04 $8,600.00 $51,600.00 $7,000.00 $42,000.00 $95.69 $5,262.95 $96.00 $5,280.00 $150.00 $8,250.00
$493.34 $6,906.76 $762.00 $10,668.00 $600.00 $8,400.00
$255.93 $767.79 $872.00 $2,616.00 $3,750.00 $11,250.00
$39,441.95 $39,441.95 $27,664.32 $27,664.32 $55,000.00 $55,000.00 $1,355.55 $5,422.20 $582.00 $2,328.00 $3,000.00 $12,000.00 $1,823,448.55 $1,917,238.00 $1,994,710.00
Eddie Axner Construction, Inc Axner Excavating, Inc
Stimpel-Wiebelhaus
Associates, Inc.
Shaded areas indicate corrections made in accordance with the Special Provisions. Page 2 of 3 Packet Pg. 146 Attachment: Bid Tabulation (4.11(c)--Award BS No. 5693 Mistletoe Ln/Victor Ave Water Improvements BID TABULATION FOR:
Mistletoe Lane and Victor Avenue Water Improvem
Bid Schedule No.: 5693
5/14/2026
ITEM DESCRIPTION UNIT QTY
1 Water Pollution Control LS 1
2 Traffic Control LS 1
3 Trench Sheeting & Shoring LS 1
4 Construction Area Sign EA 30
5 Project Funding Sign EA 1
6 Water (6" PVC, Slurry) LF 15
7 Water (8" PVC, Slurry) LF 4322
8 Water (12" DIP, Slurry) LF 19
9 Valve (8" Gate) EA 37
10 Valve (6" Gate) EA 1
11 Valve (12" Butterfly) EA 1
12 Valve (8" Pressure Reducing) EA 1
13 Fire Hydrant Assembly EA 9
14 Water Service (1") EA 46
15 Water Service (2") EA 6
16 Private Water Service (1") LF 55
17 Abandon Valve EA 14
18 Remove Valve EA 3
19 Water Main Creek Crossing LS 1
20 Bollard (Non-Removable) EA 4
TOTAL - CONTRACT ITEMS
Site Work Solutions AVERAGE
UNIT UNIT UNIT UNIT
PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE
$12,276.00 $12,276.00 $14,488.00 $14,488.00 $8,580.22 $8,580.22 $11,163.54 $155,624.00 $155,624.00 $194,208.00 $194,208.00 $143,297.03 $143,297.03 $163,719.32 $21,755.00 $21,755.00 $24,432.00 $24,432.00 $6,942.75 $6,942.75 $15,097.00 $347.00 $10,410.00 $620.00 $18,600.00 $365.57 $10,967.10 $351.76 $2,775.00 $2,775.00 $2,990.00 $2,990.00 $2,405.11 $2,405.11 $1,842.45 $1,108.00 $16,620.00 $710.00 $10,650.00 $606.22 $9,093.30 $768.06 $237.00 $1,024,314.00 $244.00 $1,054,568.00 $281.17 $1,215,216.74 $224.22 $2,656.00 $50,464.00 $967.00 $18,373.00 $1,121.79 $21,314.01 $1,138.11 $3,565.00 $131,905.00 $3,824.00 $141,488.00 $4,594.14 $169,983.18 $3,863.22 $4,348.00 $4,348.00 $4,140.00 $4,140.00 $3,425.06 $3,425.06 $3,805.11 $5,724.00 $5,724.00 $6,842.00 $6,842.00 $6,561.61 $6,561.61 $6,312.05 $49,735.00 $49,735.00 $38,753.00 $38,753.00 $53,976.44 $53,976.44 $43,899.77 $15,089.00 $135,801.00 $16,685.00 $150,165.00 $17,944.68 $161,502.12 $16,075.25 $7,192.00 $330,832.00 $6,718.00 $309,028.00 $5,834.27 $268,376.42 $5,890.62 $12,979.00 $77,874.00 $11,380.00 $68,280.00 $11,046.49 $66,278.94 $9,775.60 $391.00 $21,505.00 $213.00 $11,715.00 $92.09 $5,064.95 $198.97 $1,052.00 $14,728.00 $1,247.00 $17,458.00 $493.07 $6,902.98 $812.18 $1,301.00 $3,903.00 $1,122.00 $3,366.00 $743.16 $2,229.48 $1,498.14 $74,286.00 $74,286.00 $62,927.00 $62,927.00 $64,451.98 $64,451.98 $51,776.16 $3,312.00 $13,248.00 $2,059.00 $8,236.00 $1,483.92 $5,935.68 $1,763.81 Average Bid Total
$2,158,127.00 $2,160,707.00 $2,232,505.10 $1,961,472.21 Cox and Cox Construction,
Allen Gill Construction, Inc Inc
Shaded areas indicate corrections made in accordance with the Special Provisions. Page 3 of 3 Packet Pg. 147 Attachment: Bid Tabulation (4.11(c)--Award BS No. 5693 Mistletoe Ln/Victor Ave Water Improvements
NOTICE OF EXEMPTION
To: [RI Office of Planning and Research
1400 Tenth Street, Room 121
Sacramento, CA 95814
FROM: City of Redding
[RI Shasta County Clerk
County of Shasta
P.O. Box 990880, 1643 Market Street
Redding, CA 96099-0880
Project Title: Mistletoe Lane and Victor Avenue Water Improvements Project Location - Specific: Mistletoe Lane and Victor A venue Public Works Department
777 Cypress A venue
Redding, CA 96001
Project Location - City: Redding Project Location - County: ~S_ha_s~ta _________ _ Description of Project: The City of Redding (City) proposes to replace over 4,300 linear feet of water mains in Mistletoe Lane and Victor Avenue with new 8-inch diameter mains, as well as replace associated water services and fire hydrants.
Work will include trenching and restoring pavement, and will occur in the City right-of-way. The public will be notified of traffic restrictions.
Name of Public Agency Approving Project: ~C=ityc,;........co=f~R=e=d=d=in""g,___ ___________________ _ Name of Person or Agency Carrying Out Project: =K=u=rt~M=a=ir~e~, =P=E~-~P~r~o...,_je=c~t~E=n=--g=in=e~e=r ____________ _ Exempt Status: (check one)
□ Ministerial [Section 21080(b )( 1 ); 15268]
D Declared Emergency [Section 21080(b)(3); 15269(a)]
D Emergency Project [Section 21080(b )( 4 ); l 5269(b )] D Statutory Exemptions. State code number:
D Common Sense Exemption (This project does not fall within an exempt class, but it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment (14 CCR 1560l[b][3]). [RI Categorical Exemption. State type and section number: Sec. 15301, Existing Facilities [RI No exceptions apply that would bar the use of a categorical exemption (PRO 21084 and 14 CCR 15300.2).
Reasons why project is exempt: Class 1 exemptions include the operation, repair, maintenance, or minor alteration of existing facilities, structures, or equipment involving negligible or no expansion of use. The project is to replace aging infrastructure. The project is a regular maintenance item and does not involve change of or expansion of use. Therefore, the project has no potential to have a significant effect on the environment and further environmental review is not required.
Lead Agency Contact Person: _M_i_ek_e_S_he_f_fi_e_ld ______ _ Telephone: 530.225.4889 If Filed by Applicant:
1. Attach cert~ 'fi d document of exemption finding.
2. Has a notic V'm . o een file y the pub ic a i ncy approv; g the project? o Yes o No Signature: , Date: / - b ,,,.. l b , Title: Associate Environmental Speci [RI Signed by Lead Agency
D Signed by Applicant
Date received for filing at OPR: _____ _
SCH 2026040416
Packet Pg. 148 Attachment: Notice of Exemption (4.11(c)--Award BS No. 5693 Mistletoe Ln/Victor Ave Water Improvements Project)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Approve the submittal of one Active Transportation Program grant application to the California Department of Transportation for a total amount not to exceed $18.5 million for infrastructure improvements along:
(a) Victor Avenue from Aspin Avenue to Old Alturas Road, with improvements on Dana Drive, Bradford Way, and Old Alturas Road; and
(2) Authorize the City Manager, or designee, to sign the grant applications and any necessary documents to complete application process.
Fiscal Impact
The Active Transportation Program (ATP) grant application will request funds to design and construct improvements for the proposed project –Victor Area North Improvement Project. The project cost is estimated to be $18.5 million. The ATP program does not require a local match for the funding, however, the scoring criteria for this competitive program provides more points for applications depending on the amount of funds the local agencies leverage relative to total project costs. The City of Redding (City) will provide leveraging funds from various sources should the application be successful. The proposed match for the project is estimated to be nearly $3.7 million to ensure a 20 percent local match.
The Shasta Regional Transportation Agency (SRTA) has indicated that it will fund half of the local match through its regional bicycle and pedestrian programs. As proposed, the City would match the other half, or roughly $1.85 million. Sources may include a combination of State Transportation Improvement Program funds, Local Streets and Roads funds, or the Citywide Transportation Impact Fee Program. The local match funding contributions and grant acceptance, if awarded, will be brought back to City Council (Council) at a future meeting for consideration.
MEETING DATE: June 2, 2026
ITEM NO. 4.11(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(d)--Authorize Submission for Active Transportation Program Grant Funding Michael Webb, Assistant City
Manager/Public Works
Director
Packet Pg. 149
Report to Redding City Council May 26, 2026
Re: 4.11(d)--Active Transportation Program Grant Funding Page 2 Alternative Action
The Council may choose not to apply for funds under this grant program, or provide staff with alternative direction.
Background/Analysis
The ATP consolidated several federal and state transportation programs into a single program with a focus to make California a national leader in active transportation. The ATP is administered by Caltrans Division of Local Assistance, Office of State Programs. The purpose of the ATP is to encourage increased use of active modes of transportation. The City has been successful in this purpose by obtaining over $42 million in ATP grant funds in recent years to design and construct improvement projects on Placer Street, Quartz Hill Road, Bechelli Lane, West Street, Diestelhorst to Downtown Project, Victor Avenue south of Cypress Avenue, and the Sundial Bridge Drive area. In ATP Cycle 6, the City was awarded Victor Avenue north of Cypress Avenue to Mistletoe Lane, and Butte Street from Shasta Street in Downtown Redding west to Pleasant Avenue.
SRTA has obtained a grant called the GoShasta plan, which has assisted the City of Redding in developing transportation grant applications as well as pledging to match City funds toward the local match in order to maximize the grant application viability, as indicated above. Building on this effort of cooperation and taking the next step toward implementing the City’s Active Transportation Plan, staff recommends applications for ATP funding on the following project:
The proposed Victor Area North Improvement Project (VAN) is located along Victor Avenue north of the State Route 44 interchange, with the bulk of the work starting near the intersection of Azoulay Court and extending north to Old Alturas Drive. The project is part of the overall approved corridor plan for Victor Avenue, which includes two previously approved projects that are currently in the works and will make various roadway improvements on Victor Avenue from Hartnell Avenue to Cypress Avenue (Victor and Cypress Improvements, VCAT), and Cypress Avenue to Mistletoe Lane (Victor and Mistletoe Improvements, VIP). The current proposed project would extend the shared use path along the west side of Victor Avenue from Azoulay Court to Old Alturas Road. This would leave a gap over the SR44 Interchange that would potentially be completed with Caltrans participation in a future ATP cycle. The project proposes two single lane roundabouts on Victor Ave. at the Dana Drive and Old Alturas intersections. It would also include adding sidewalks and crossings on Dana Drive, Bradford Way and Old Alturas Road to ensure adequate pedestrian access to shopping along those corridors. It would also construct sidewalks, curb ramps, and bike lanes. It would enhance safety by constructing mid-block crossings equipped with rectangular rapid flashing beacons and by installing protected intersections for safer street crossings and travel through intersections.
This project is the result of a significant public outreach effort to identify and vet the project within the affected neighborhoods, and with other affected agencies, organizations, and working groups. Staff will continue these efforts through the time of grant application submission.
Environmental Review
This action, grant application submittal, is not a project as defined by the California Environmental Quality Act. No action is required.
Packet Pg. 150
Report to Redding City Council May 26, 2026
Re: 4.11(d)--Active Transportation Program Grant Funding Page 3 Council Priority/City Manager Goals
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
• 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.” • Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
Attachments
Victor Area North Exhibit
Packet Pg. 151
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Packet Pg. 152 Attachment: Victor Area North Exhibit (4.11(d)--Active Transportation Program Grant Funding)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following for the City of Redding Clear Creek Wastewater Treatment Plant:
(1) Authorize the purchase of an Atlas Copco Blower in the amount of $220,719 including all applicable taxes and fees, to replace aging and chronically failing HSI blowers; and (2) Authorize the City Manager, or designee, to approve future pricing adjustments, and changes in terms, as needed, due to inflation and unstable economic conditions up to a total of $20,000.
Fiscal Impact
The Wastewater Utility Division capital improvement fund allocated $200,000 in the current budget anticipating this purchase, and has sufficient funds available within the approved Fiscal Year 2025–26 budget to support this purchase.
Alternative Action
The City Council (Council) could elect not to approve the purchase and instead provide alternative direction to staff. This action would require staff to identify and evaluate a different blower manufacturer, make, or model, which would be time-consuming and may not yield a suitable replacement. Delays in replacement could increase the risk of equipment failure and potential regulatory compliance issues.
Background/Analysis
On July 21, 2020, the Council approved the purchase of an Atlas Copco blower for the Clear Creek Wastewater Treatment Plant (CCWWTP) to replace aging and chronically failing Houston Service Industries (HSI) blowers. This initial unit was procured to evaluate performance and reliability, with the intent of standardizing future replacements if the equipment proved successful.
MEETING DATE: June 2, 2026
ITEM NO. 4.11(e)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(e)--Authorize Purchase of Atlas Copco Blower for the Clear Creek Wastewater Treatment Plant
Michael Webb, Assistant City
Manager/Public Works
Director
Packet Pg. 153
Report to Redding City Council May 28, 2026
Re: 4.11(e)--Authorize Purchase of Atlas Copco Blower for the Clear Creek Wastewater Treatment Plant Page 2
The installed blower has performed reliably and met operational expectations. Based on this performance, staff recommended—and the Council approved on February 15, 2022—the purchase of a second Atlas Copco blower and the phased replacement of the remaining blowers at the CCWWTP with similar units as funding allows.
Since that time, the second and third blower have been installed and are operational as part of this ongoing replacement program. The current purchase represents the fourth of five total blowers planned for replacement at the CCWWTP. Consistent with the Council’s prior direction and the established replacement strategy, staff recommends proceeding with this fourth blower during the current budget cycle and completing replacement of the final blower following the start of the Fiscal Year 2026–27 budget cycle, pending council approval and budget allocation.
Per Redding Municipal Code Section 4.20.080 - Bidding - When dispensed with.
A. Purchase of supplies, services or equipment shall be by bid procedures pursuant to Sections 4.20.120 and 4.20.130, except that bidding may be dispensed with only in the following instances:
4. When a sole-source procurement is based on standards previously adopted by the City Council.
Blowers are a critical component of the biological wastewater treatment process. A continuous and reliable air supply is required to sustain the microorganisms responsible for treatment. Without adequate aeration, the biological process would fail, resulting in noncompliance with regulatory requirements. The installation of new, reliable blowers ensures continued plant performance and supports ongoing compliance with all applicable discharge permits and regulations.
Environmental Review
This action, the purchase of equipment, is not a project as defined by the California Environmental Quality Act and no further action is required.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
Location Map
Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 Staff Report 07/21/2020 Purchase Blower- CCWWTP 7-21-2020 Staff Report 02/15/2022 Purchase Blower- CCWWTP 2-15-2022 Staff Report 02/07/2023 Purchase Blower- CCWWTP 2-07-2023 Packet Pg. 154
Packet Pg. 155 Attachment: Location Map (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Clear Creek Wastewater Treatment Plant) Quote No
. 6488232R2
Date: May 7, 2026
Proposal
Clear Creek WWTP 4th ZB
Redding, CA
May 7, 2026
Quote No. 6488232R2
Packet Pg. 156 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
Attn: Chris Kindig
Project: Clear Creek WWTP 4th ZB - Redding, CA
We thank you for your above referenced inquiry, and are pleased to submit our quotation for your consideration.
Please see the next page for a summary of our offer. Full details can be found in subsequent pages.
We hope you find our quotation in line with your requirements. However, if you have any questions, please do not hesitate to contact us.
Sincerely,
Gatlin Gold Joel Santos P.E.
Regional Municipal Sales Manager Applications Engineer
Southern and Western U.S. Email: [email protected] Email: [email protected] Phone: 281-594-5036
Phone: 281-776-4941
Packet Pg. 157 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
SCOPE OF SUPPLY
Line Qty Description Manufacturer
EQUIPMENT
Magnetic Bearing High Speed Turbo Blowers
1 1
Magnetic Bearing Dir ZB6 VSD+ 250-I
Atlas Copco Drive Direct
Impeller I
Motor 250kW (336hp) PM
Integrated Starter Yes KEB
Controller Yes - Elektronikon
Air Outlet 16" ANSI Atlas Copco
Enclosure Indoor
See Product Description for more details
Sales Options
Local Speed Control Yes - Dial Atlas Copco Anchor Pads Yes Factory Testing
1 Mechanical Run Unwitnessed Atlas Copco 1 Performance Unwitnessed - Factory Quote valid to: 7/24/2026
Submittals: For information only
Delivery time: 24-26 Weeks from PO Acceptance
Startup: 1 trip(s) - 3 total days onsite
Freight: Included
Installation: Not included
Warranty: See Standard Conditions of Sale
Payment terms: See Standard Conditions of Sale
Incoterms & location: Ex-Works
Pricing
Equipment $204,400
Tax (7.25%) $14,819
Freight $1,500
TOTAL $220,719
Packet Pg. 158 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
Clarifications
General:
1. Installation, piping, elbows, spool pieces, piping hardware, piping gaskets, anchor bolts, housekeeping pads, external fuses and wiring to be provided by others.
2. Only a single 460V/3ph power supply is required to the blower enclosure. VFD, cooling fan motor & starter, and local control panel will be factory wired and programmed – significantly reducing contractor time and material cost to install and commission.
3. Standard Warranty for a period of 12 months from commissioning or 18 months from shipment, whichever occurs first.
4. Taxes are not included unless otherwise specified.
5. BABA compliance IS NOT considered for this proposal related to pricing. If BABA compliance is required, please let us know so that we can provide an updated price and proposal.
6. Check valve is not included as we had previously discussed that there was an extra one on site.
7. Field Services include Commissioning, Installation of Output Control Dial, & Optimizer integration.
Packet Pg. 159 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
ZB 5-6 VSD+
ATLAS COPCO OIL-FREE CENTRIFUGAL BLOWER
The Atlas Copco ZB 5-6 VSD+ is the latest generation of magnetic bearings centrifugal blowers It includes advanced features ensuring efficiency to its maximum as well as enhanced reliability. Its plug-and-play design provides simple installation and easy access for service activities.
The Atlas Copco magnetic bearing technology provides operational peace of mind and full control over the rotating component. No matter the conditions, the machine controls and adjusts the shaft’s position at any given time, guaranteeing an optimal operation. Coupled to a highly efficiency permanent magnet motor, this machine is the ideal combination of efficiency and reliability.
Having an efficient technology is only the first step towards the machine’s total efficiency. The Atlas Copco ZB 5-6 VSD+ is also delivered with a state-of-the-art packaging, minimizing the losses from the air entry point to the discharge flange.
The extra touch to the Atlas Copco ZB 5-6 VSD+ is given to the cooling circuits. Proper cooling is built into the blower’s design. Streams of fresh air are running within and around internal components to ensure the lowest possible operating temperature. Thanks to the internal close water loop circuit, the motor and variable frequency drive are maintained at a constant temperature, no matter the environmental or the operating conditions. This design provides an extended reliability as well as an increased lifetime of the machine.
The Atlas Copco ZB 5-6 VSD+ features even more unique benefits.
From the modulating blow-off valve extending the machine’s turndown, to the magnetic bearing controller continuous power feed without the need of a UPS, these are making the ZB 5-6 VSD+ the perfect product for any low-pressure application.
Packet Pg. 160 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
Reliability
Atlas Copco magnetic bearing technology
The Atlas Copco magnetic bearing technology is a strong active technology. At any moment, the full control of the shaft is ensured thanks to the magnetic force adjusting the shaft's position, no matter the conditions.
This technology:
• Ensures a full control over the rotating assembly and a complete adjustment of the shaft’s position to face any operating conditions
• Has unlimited starts and stops and no contact between stator and rotor at any given moment
• Does not require the use of process air to operate or to cool down components
• Combines air and water cooling to ensure extended
components’ lifetime within a compact and powerful
design
• Does not require the use of a UPS (power battery
bank) to provide power to the magnetic bearing
controller
Built-in cooling paths
The Atlas Copco ZB 5-6 VSD+ turbo blower has an advanced cooling design. Several dedicated paths are present to provide the optimum cooling requirement:
• The magnetic bearing cooling path is using fresh air from outside of the blower which is cleaned and ducted directly onto the bearings
• The internal cooling path also uses fresh cleaned air from outside of the machine to circulate around the mechanical components such as the permanent magnet motor
• The Electrical cubicle cooling path is taking fresh air from the bottom of the cubicle to the top, cooling down every cubicle component
• The water cooling path runs through the permanent magnet motor and high frequency drive, maintaining these key
components at their optimum operating temperature
Regulating blow-off valve
With its new regulating algorithm, the Atlas Copco ZB 5-6 VSD+ features a regulating blow-off valve. This component brings huge benefits to the machine:
• It allows a quick response to dynamically adjust its position during the blower’s operation
• It provides an extended turndown in the area where traditional turbo blowers would surge or shutdown.
• It bridges flow gaps between blowers running in parallel, allowing the process to be accurately provided with the exact amount of flow needed
Packet Pg. 161 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
Efficiency
Atlas Copco centrifugal blower
Atlas Copco has a long history with centrifugal equipment. For more than a decade, the ZB high-speed turbo blower range proved its superior efficiency. With this new generation, the ZB 5-6 VSD+ continues the success story, putting efficiency in the front line of this product’s benefits. The product includes:
• Magnetic bearing technology for high efficiency
operation without the consumption of process air
• High-efficient permanent magnet motor for reduced
losses along the speed range and an optimum
operation in the complete blower’s operating map
• State-of-the-art impeller designed to operate at
dedicated pressure levels
• Premium labyrinth seal reducing leakages and
energy losses over the compression stage
Separated process air path
Too often, process air is mixed with cooling air within centrifugal turbo blowers, increasing the power consumption of the machine. The Atlas Copco ZB 5-6 VSD+ is changing this habit and is built with a dedicated air path going to the process, ensuring minimal pressure drops as well as minimal temperature increase. This feature:
• Guarantees energy savings by separating cooling air paths to the process air path and increased flow delivered from the machine
• Ensures the lowest discharge air temperature to the
process
• Allows simple ducting for air intake from a remote location Plug-and-play package
When designing blowers, Atlas Copco makes a priority to build simple, easy to install and serviceable machines.
The Atlas Copco ZB 5-6 VSD+ is a perfect example of this mindset. The machine:
• Includes all necessary components straight from
the factory
• Requires a single electrical connection to feed all
the machine’s electrical components
• Has a reduced footprint and installation space
required around the machine
• Is easily transportable with forklift slots embedded
within the base frame
Packet Pg. 162 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
Working principle
Traditionally, process air is used to cool down components in centrifugal turbo blowers. This, however, has a serious impact on the performance. There is no better way to cool down a component than having a dedicated stream of fresh air. The Atlas Copco ZB blower separates the cooling paths from the process path as it is presented below.
The process air path
Air is taken from the atmosphere (A), passes through a set of baffles (B) reducing its noise, it is filtered by highefficiency filters (C) before entering the element via a direct connection. The impeller, which is spinning at high speed (D) provides energy to the air which then will turn into pressure. Air is then delivered to a discharge cone and passes by a high-efficiency check valve (F) before entering the process. The modulating blow-off valve (G) and noise cancelling silencer (H) are present to derivate air from the main line for either protection or regulation purposes.
Packet Pg. 163 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
The magnetic bearing cooling air system
Air is taken from the atmosphere (A), passes through a set of baffles reducing its noise (B), is filtered through a high-efficiency filter (C) before blown into the bearings via two air fans (I). After cooling down the magnetic bearings, the warm air is being rejected to the centralized location at the top of the machine, which can be ducted or piped outside of the blower room if needed.
The closed-loop water system
Atlas Copco ZB turbo blowers use an internal water and glycol circuit to cool down the permanent magnet motor and high frequency drive assuring to use them at their best efficiency regardless of the operating or ambient conditions. The closed loop is set-up as followed: a pump (J) circulates the mix through the line, starting with the water-cooled high frequency drive (K) and then followed by the water-cooled permanent magnet motor (E).
Depending on the required cooling capacity, a thermostatic valve (L) adjusts the flow going to the heat exchanger (M) or back to the pump (J).
The heat exchanger includes in the air-cooled machine variants a variable speed air fan to regulate the required cooling power in the most precise way. If there is no need to cool down the liquid after the motor, none of it is passing by the heatsink, totally removing the power consumption of the cooling fan. Heated air from the heat exchanger is then driven towards the centralized cooling air grid before being rejected into the atmosphere (ducted, piped or none of these).
Packet Pg. 164 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No
. 6488232R2
Date: May 7, 2026
9001:2015 CERTIFICATE OF APPROVAL:
Packet Pg. 165 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
Terms and Conditions of Sale
GENERAL – Unless otherwise expressly agreed in writing by a duly authorized representative of Atlas Copco these terms and conditions supersede all other communications and agreements and notwithstanding any conflicting or different terms and conditions in any order or acceptance of Purchaser, all sales and shipments shall exclusively be governed by these terms and conditions. When used herein “affiliates” shall mean Atlas Copco AB and its wholly-owned subsidiaries. Section headings are for purposes of convenience only. “Products” as used herein shall include products, parts and accessories furnished Purchaser by Atlas Copco. Orders shall be subject to acceptance at Atlas Copco Compressors LLC’s principal corporate offices in Rock Hill, South Carolina.
DELIVERY – Unless otherwise agreed in writing, Products manufactured, assembled or warehoused in the continental United States are delivered F.O.B. shipping point, and Products shipped from outside the continental United States are delivered F.O.B. point of entry. Where the scheduled delivery of Products is delayed by Purchaser or by reason of any of the contingencies referred to in Section 5. Atlas Copco may deliver such Products by moving it to storage for the account of and at the risk of Purchaser. Shipping dates are approximate and are based upon prompt receipt of all necessary information and approvals from Purchaser. Atlas Copco reserves the right to make delivery installments.
SECURITY AND RISK OF LOSS - Upon request from Atlas Copco, Purchaser agrees to execute a security agreement covering the Products sold or other assets and to perform all acts which may be necessary to perfect and assure a security position of Atlas Copco. Notwithstanding any agreement with respect to delivery terms or payment of transportation charges, the risk of loss or damage shall pass to Purchaser and delivery shall be deemed to be complete upon delivery to a private or common carrier or upon moving into storage, whichever occurs first, at the point of shipment for Products assembled, manufactured or warehoused in the continental United States or at the point of entry for Products shipped from outside the continental United States.
PAYMENT – If Purchaser fails to pay any invoice when due, Atlas Copco may defer deliveries under this or any other contract with Purchaser, except upon receipt of satisfactory security for or cash in payment of any such invoice.
A service charge of the lesser of 1% per month or the highest rate permitted by applicable law shall be charged on all overdue accounts. Failure on the part of Purchaser to pay invoices when due shall, at the option of Atlas Copco, constitute a default in addition to all other remedies Atlas Copco may have under these conditions of sale or applicable law. If, in the judgment of Atlas Copco, the financial condition of Purchaser at any time prior to delivery does not justify the terms of payment specified. Atlas Copco may require payment in advance or cancel any outstanding order, whereupon Atlas Copco shall be entitled to receive reasonable cancellation charges. If delivery is delayed by Purchaser, payment shall become due on the date Atlas Copco is prepared to make delivery. Should manufacture be delayed by Purchaser, pro rata payments shall become due if and to the extent required at Atlas Copco by its contracts with the manufacturer. All installment deliveries shall be separately invoiced and paid for without regard to subsequent deliveries.
Delays in delivery or non-conformities in any installment shall not relieve Purchaser of its obligations to accept any pay for remaining installments.
FORCE MAJEURE – Atlas Copco shall not be liable for loss, damage, detention, or delay, nor be deemed to be in default from causes beyond its reasonable control including but not limited to acts of God, fire, storm, strike or other concerted action of workmen, act or omission of any governmental authority or of Purchaser, compliance with import or export regulations, insurrection or riot, embargo, quarantine, epidemic, pandemic, delays or shortages in transportation, or inability to obtain necessary engineering talent, labor, materials, or manufacturing facilities from usual sources. In the event of delay due to any such cause, the date of delivery will be postponed by such length of time as may be reasonably necessary to make up for such delay.
NEW PRODUCT WARRANTY – Atlas Copco warrants to the Purchaser that all stationary compressors, portable compressors, compressed air dyers, Atlas Copco-designed compressor parts and other Products manufactured by Atlas Copco and affiliates shall be free of defects in design, material and workmanship for a period of fifteen (15) months from date of shipment to Purchaser, or twelve (12) months from date of initial start-up, whichever occurs first, except as set forth below or in the New Products Warranty attached hereto.
Should any failure to conform with this warranty appear prior to or after shipment of the Product to Purchaser during the specified periods under normal and proper use and provided the Product has been properly stored, installed, handled and maintained by the Purchaser, Atlas Copco shall, if given prompt notice by Purchaser, repair or replace, the non-conforming Product or authorize repair or replacement by the Purchaser at Atlas Copco’s expense.
Replaced Products become the property of Atlas Copco.
Atlas Copco warrants Products or parts thereof repaired or replaced pursuant to the above warranty under normal and proper use, storage, handling, installation, and maintenance, against defects in design, workmanship and material for a period of thirty (30) days from date of start-up of such repaired or replaced Products or parts thereof or the expiration of the original Product warranty, whichever is longer.
When the nature of the defect is such that it is appropriate in the judgment of Atlas Copco to do so, repairs will be made at the site of the Product.
Repair or replacement under applicable warranty shall be made at no charge for replacement parts, F.O.B. Atlas Copco Warehouse, warranty labor, serviceman transportation and living costs, when work is performed during normal working hours (8 a.m. to 4:30 p.m. Monday through Friday, exclusive of holidays). Labor performed at other times will be billed at the overtime rate then prevailing for services of Atlas Copco personnel.
The Atlas Copco warranty does not extend to Products not manufactured by Atlas Copco or affiliates. As to such Products, Purchaser shall be entitled to proceed only upon the terms of that particular manufacturer’s warranty. The Atlas Copco warranty does not apply to defects in material provided by Purchaser or to design stipulated by Purchaser.
Used Products, Products not manufactured by Atlas Copco or affiliates and Products excluded from the above warranties are sold AS IS with no representation or warranty, and ALL WARRANTTIES OF QUALITY, WRITTEN, ORAL, OR IMPLIED, other than may be expressly agreed to by Atlas Copco in writing, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTIABILITY OR FITNESS, ARE HEREBY DISCLAIMED.
Any services performed by Atlas Copco in connection with the sale, installation, servicing or repair of a Product are warranted to be performed in a workmanlike manner. If any nonconformity with this warranty appears within 45 days after the services are performed, the exclusive obligation of Atlas Copco shall be to re-perform the services the services in a conforming manner.
THE FOREGOING WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES OF QUALITY, WRITTEN, ORAL OR IMPLIED, AND
ALL OTHER WARRANTIES, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS ARE HEREBY DISCLAIMED. Correction of nonconformities as provided above shall be Purchaser’s exclusive remedy and shall constitute fulfillment of all liabilities of Atlas Copco (including any liability for direct, indirect, special, incidental or consequential damage) whether in warranty, strict liability, contract, tort, negligence, or otherwise with respect to the quality of or any defect in Products or associated services delivered or performed hereunder.
Packet Pg. 166 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
LIMITATION OF LIABILITY – IN NO EVENT SHALL ATLAS COPCO BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, however arising, whether in warranty, strict liability, contract, tort, negligence or otherwise, including but not limited to loss of profits or revenue, loss of total or partial use of the Products or facilities or services, downtime cost, or claims of the Purchaser for such or other damages whether on account of Products furnished hereunder or delays in delivery thereof or services performed upon or with respect to such Products. Atlas Copco’s liability on any claim whether in warranty, strict liability, contract, tort, negligence or otherwise for any loss or damage arising out of, connected with, or resulting from this contract or the performance or breach thereof, or from the design, manufacture, sale, delivery, resale, repair, replacement, installation, technical direction of installation, inspection, servicing, operation or use of any Product covered by or furnished under this contract shall in no case (except as provided in the section entitled “Patent Indemnity”) exceed the purchase price allocable to the Product or Part thereof which gives rise to the claim.
All causes of action against Atlas Copco arising out of or relating to this contract or the performance hereof shall expire unless brought within on year of time of accrual thereof.
PRICES – Prices to the Purchaser shall be the Atlas Copco list price in effect at time of order. Atlas Copco may, upon thirty (30) days prior written notice to Purchaser, change prices, or other terms of sale affecting the Products, by issuing new price schedules, bulletins or other notices.
This contract applies to new Products only. Purchases of used equipment shall be on terms to be agreed upon at time of sale to Purchaser.
This price does not include any Federal, state or local property, license, privilege, sales, service use, excise, value added, gross receipts, or other like taxes which may now or hereafter by applicable to, measured by or imposed upon or with respect to this transaction, the property, its purchase, sale, replacement, value, or use, or any services performed in connection therewith. Purchaser agrees to pay or reimburse Atlas Copco, its subcontractors or suppliers any such taxes, which Atlas Copco, its subcontractors or suppliers are required to pay or collect or which are required to be withheld by Purchaser.
The price shall also be subject to adjustment in accordance with the published Price Adjustment Clauses, which price adjustment information shall supersede the terms of this Section 8, where inconsistent herewith.
INFORMATION FURNISHED PURCHASER – Any design, manufacturing drawings or other information or materials submitted to the Purchaser and not intended for dissemination by Purchaser remain the exclusive property of Atlas Copco and may not, without its consent, be copied or communicated to a third party.
PATENT INDEMNITY – For purposes only of this Section 10, where used, the designation “Atlas Copco” shall be deemed to mean Atlas Copco North America Inc. and its subsidiaries.
Atlas Copco shall at its own expense defend any suits or proceedings brought against purchaser insofar as based on an allegation that Products furnished hereunder constitute an infringement of any claim of any patent of the United States of America, other than a claim covering a process performed by said Products or a product produced by said Product, provided that such Products are manufactured by Atlas Copco, are not supplied according to Purchaser’s detailed design, are used as sold by Atlas Copco. Purchaser shall have made all payments then due hereunder, and Atlas Copco is notified promptly in writing and given authority, information and assistance for the defense of said suite or proceeding; and Atlas Copco shall pay all damages and costs awarded in any suit or proceeding so defended, provided that his indemnity shall not extend to any infringement based upon the combination of said Products or any portion thereof with other Products or things not furnished hereunder unless Atlas Copco is a contributory infringer. Atlas Copco shall not be responsible for any settlement of such suit or proceeding made without its written consent. If in any suit or proceeding defended hereunder any Product is held to constitute infringement, and its use is enjoined, Atlas Copco shall, at its option and its own expense, either replace said Products with non-infringing Products; or modify them so that they become non-infringing; or remove them and refund the purchase price and the transportation costs thereof. THE FOREGOING STATES THE ENTIRE LIABILITY OF ATLAS COPCO AND AFFILIATES WITH RESPECT TO PATENT INFRINGEMENT.
To the extent that said Products or any portion thereof are supplied according to Purchaser’s detailed design or instructions, or modified by Purchaser, or combined by Purchaser with equipment or things not furnished hereunder, except to the extent that Atlas Copco is a contributory infringer, or are used by Purchaser to perform a process, or produce a product, and by reason of said design, instructions, modification, combination, performance or production, a suit or proceeding is brought against Atlas Copco, Purchaser agrees to indemnify Atlas Copco in the manner and to the extent Atlas Copco indemnities Purchaser in this Section 10 insofar as the terms hereof are appropriate.
ASSIGNMENT – Any assignment of this contract or any rights hereunder, without prior written consent of Atlas Copco by a duly authorized representative thereof shall be void.
TERMINATION – Any order or contract may be cancelled by Purchaser only upon payment of reasonable charges (including an allowance for profit) based upon costs and expenses incurred, and commitments made by Atlas Copco.
PARTIAL INVALIDITY – If any provision herein or portion thereof shall for any reason be held invalid or unenforceable, such invalidity or enforceability shall not affect any other provision or portion thereof, but these conditions shall be construed as if such invalid or unenforceable provision or portion thereof had never been contained therein.
REMEDIES – The remedies expressly provided for in these conditions shall be in addition to any other remedies, which Atlas Copco may have under the Uniform Commercial Code or other applicable law.
SMARTLINK: The equipment may include a data monitoring service called SMARTLINK. The data received by Atlas Copco may be used by Atlas Copco and certain third party distributors and contractors for the purpose of increasing overall customer service. Atlas Copco will use commercially reasonable efforts to ensure that Purchaser’s data is kept confidential. Purchaser acknowledges that the use of the SMARTLINK is provided “as is”, that use of the service is entirely at Purchaser’s risk, and that Atlas Copco may discontinue the SMARTLINK service at any time. Purchaser may request discontinuance of the SMARTLINK service at any time.
NOTE: Sale of the equipment or services described or referred to herein at the price indicated is expressly conditioned upon the terms and conditions set forth on the front and back of this page. Any confirmatory action by the Purchaser hereunder, or any acceptance of such equipment of services, shall constitute assent to said terms and conditions. Any additional or different terms or conditions set forth in the Purchaser’s order or other communications are objected to by Seller and shall not be effective or binding unless assented to in writing by an authorized representative of Seller.
Packet Pg. 167 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Quote No. 6488232R2
Date: May 7, 2026
PAYMENT TERMS
The payment terms shall be Net 30 days from date of Delivery.
For late payments, the customer agrees to pay the greater value of $250 per business calendar day for payment not received or A. 1.5% of the invoice value if not paid in full within 10 business days of the agreed upon NET 45 terms B. 2.5% of the invoice value if not paid in full within 20 business days of the agreed upon NET 45 terms C. 3% of the invoice value per calendar month if not paid in full
2. Export Shipments
All export shipments are subject to purchaser arranging for an irrevocable letter of credit in favor of Atlas Copco Compressors LLC, from a recognized American bank.
Should the order fall in a category that requires progress payments, the letter of credit shall be arranged to release payment in accordance with the agreed payment schedule.
3. Payment Retention
Payment retention will not be allowed. An irrevocable bank letter of credit will be furnished at Atlas Copco’s expense in lieu of retention.
4. Credit Approval
All terms are subject to credit approval by Atlas Copco Compressors LLC.
CANCELLATION SCHEDULE
The following cancellation schedule shall apply to orders once released to manufacture.
Definitions:
Standard Stocked Equipment - equipment as shown in the current catalog and available for shipment from the US Distribution Center.
Standard Non-Stocked Equipment - equipment as shown in the current catalog but not currently stocked at the US Distribution Center.
Engineered Equipment - equipment requiring customized features not shown in the current catalog.
Orders for Standard Non-Stocked Equipment
A) After production has started:
* 40% of equipment price
B) After production has been completed:
* 60% of equipment price
Orders for Engineered Equipment
A) After production has started
* 40% of the base machine price
* 40% of optional equipment of purchased materials will be charged B) After production has completed
* 60% of the base machine price
* 100% of optional equipment
Packet Pg. 168 Attachment: Atlas Copco Proposal ACP6488232R2-Redding Clear Creek-4th ZB6 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve the Evaluation and Purchase Agreement with Atlas Copco Compressors LLC, in the amount of $130,000 for an air blower at the Clear Creek Wastewater Treatment Plant, and approve additional funding in the amount not to exceed $20,000 for shipping and handling, taxes, installation, and start up and commissioning services.
Fiscal Impact
The Wastewater Utility Division has sufficient funds available in the approved Fiscal Year 2020- 21 budget for this purchase.
Alternative Action
The City Council has the option to not approve the agreement and the allocation of additional funds and provide alternative direction to staff.
Background/Analysis
As part of the Clear Creek Wastewater Treatment Plant (CCWWTP) expansion project in 2012, five (5) new Houston Service Industries (HSI) air blowers (blowers) were installed as components of the updated wastewater treatment process. These blowers have been problematic in their inability to reliably operate and function as designed from the time of installation. Years of repairs, services, and replacements at the cost of the manufacturer have yet to remedy all issues, particularly on one of the five blowers. The original five year warranty period for the blower units formally ended in 2017. Atlas Copco Compressors LLC (Atlas Copco) has subsequently purchased HSI and has been working with the City of Redding (City) to correct the problems. Even though the warranty period has expired on the blowers, Atlas Copco has continued to provide service to the City in a good faith effort to try and remedy the problems.
MEETING DATE: July 21, 2020
ITEM NO. 4.11(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(b)--Evaluation and Purchase Agreement with Atlas Copco Compressors LLC, for an Air Blower at the Clear Creek Wastewater Treatment Plant Chuck Aukland, Public
Works Director
Packet Pg. 169 Attachment: Staff Report 07/21/2020 Purchase Blower- CCWWTP 7-21-2020 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Clear Report to Redding City Council July 13, 2020
Re: 4.11(b)--Evaluation & Purchase Agreement Atlas Copco Compressors LLC, for Air Blower at CCWWTP Page 2
The proposed Evaluation and Purchase Agreement (Agreement) is a remedy from Atlas Copco to provide the City with a new blower that is believed to better suit the needs of the CCWWTP. The blower will be replacing a non-operational blower so there is no interruption in service or process. The agreement will allow the City to install and operate this new blower on a trial basis for up to 90 days. If the blower meets the operational needs, the City can purchase the blower at cost from Atlas Copco. If the blower does not meet operational needs, the City can return the blower and pursue other options.
The agreement has been approved as to form by the City Attorney.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
Evaluation and Purchase Agreement (available online)
Packet Pg. 170 Attachment: Staff Report 07/21/2020 Purchase Blower- CCWWTP 7-21-2020 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Clear
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize purchase of Atlas Copco blower in the amount of $190,948.53 for the City of Redding Clear Creek Wastewater Treatment Plant; and approve additional funding in an amount not to exceed $30,000 for shipping and handling, taxes, and start-up and commissioning services.
Fiscal Impact
The Wastewater Utility Division has sufficient funds available in the approved Fiscal Year 2021- 22 budget for this purchase.
Alternative Action
The City Council (Council) could choose not to approve the purchase and additional funds and provide alternative direction to staff.
Background/Analysis
As part of the Clear Creek Wastewater Treatment Plant (CCWWTP) expansion project in 2012, five (5) new Houston Service Industries (HSI) air blowers (blowers) were installed as part of the updated wastewater treatment process. The functionality and operation of these blowers has been unreliable from the time they were installed. Despite the manufacturer covering the cost of years of repairs, services, and replacements the problems have not been remedied and the blowers continue to experience issues. Atlas Copco has subsequently purchased HSI and has been working with the City of Redding (City) to correct the problems.
MEETING DATE: February 15, 2022
ITEM NO. 4.11(f)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(f)--Authorize Purchase of Blower for Clear Creek Wastewater Plant Chuck Aukland, Public
Works Director
Packet Pg. 171 Attachment: Staff Report 02/15/2022 Purchase Blower- CCWWTP 2-15-2022 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Clear Report to Redding City Council February 9, 2022
Re: 4.11(f)--Authorize Purchase of Blower for Clear Creek Wastewater Plant Page 2 On July 21, 2020, the Council approved an Evaluation and Purchase agreement with Atlas Copco to provide the City with a new blower on a “Trial and Buy” basis. This blower has proven to be much more reliable and has a wider range of airflow that better suits the needs of the CCWWTP.
The City completed the purchase of this blower in 2021. Subsequently, the other HSI blowers are failing, and currently, there are only two of the five blowers operating as designed, including the newest installed blower. Atlas Copco has provided a quote to purchase another blower to replace one of the inoperable blowers. As time and budget allows, the inoperable HSI blowers will be systematically replaced with new Atlas Copco blowers in future budget cycles. The air blowers are some of the most critical pieces of equipment for CCWWTP and must be operational in order to operate the biological process of the plant.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
Quote No. 2915353 (available online)
7-21-20 Staff Report (available online)
Packet Pg. 172 Attachment: Staff Report 02/15/2022 Purchase Blower- CCWWTP 2-15-2022 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Clear
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the purchase of Atlas Copco blower in the amount of $189,526.98 for the City of Redding Clear Creek Wastewater Treatment Plant; and approve additional funding in an amount not to exceed $30,000 for taxes and contingency.
Fiscal Impact
The Wastewater Utility Division has sufficient funds available in the approved Fiscal Year 2022-23 budget for this purchase.
Alternative Action
The City Council (Council) could choose not to approve the purchase or the additional funds and, instead, provide alternative direction to staff. This would result in the need to identify a different brand, make, or model blower which would be time consuming and could result in no match being found increasing the potential for regulatory action.
Background/Analysis
On July 21, 2020, the Council approved the purchase of a new Atlas Copco Blower for the Clear Creek Wastewater Treatment Plant (CCWWTP) to replace chronically failing HSI blowers. The blower was purchased with the intent to evaluate the product and, if reliable, move forward with this unit make and model to replace the remaining blowers.
The Atlas Copco blower was installed and has performed well. As a result, staff recommended, and the Council approved at its meeting on February 15, 2022, both the purchase of a second Atlas Copco blower for the CCWWTP and the systematic replacement of remaining blowers with similar units at the CCWWTP as time and budget allow. The second blower has been received and is currently being installed. Staff recommends purchasing the third blower this budget year.
MEETING DATE: February 7, 2023
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(a)--Authorize Purchase of Blower for Clear Creek Wastewater Treatment Plant
Chuck Aukland, Public
Works Director
Packet Pg. 173 Attachment: Staff Report 02/07/2023 Purchase Blower- CCWWTP 2-07-2023 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Clear Report to Redding City Council January 30, 2023
Re: 4.11(a)--Purchase of Blower for Clear Creek Wastewater Treatment Plant Page 2 Per Redding Municipal Code 4.20.080 – Bidding – When dispensed with.
A. Purchase of supplies, services, or equipment shall be by bid procedures pursuant to Sections 4.20.120 and 4.20.130, except that bidding may be dispensed with only in the following circumstances:
4. When a sole-source procurement is based on standards previously adopted by the City Council;
Blowers are an integral part of the biological wastewater treatment process. Without a constant supply of air, the biological organisms cannot survive and the treatment process would cease to function. New and reliable blowers will provide the air which is needed to allow the CCWWTP to operate properly and continue to meet all regulatory requirements.
Environmental Review
This action is not a project as defined by the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
Clear Creek 3rd ZB Proposal R00
7-21-20 Staff Report
2-15-22 Staff Report
Packet Pg. 174 Attachment: Staff Report 02/07/2023 Purchase Blower- CCWWTP 2-07-2023 (4.11(e)--Authorize Purchase of Atlas Copco Blower for the Clear
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to Request for Proposal No. 5676, to provide engineering services for the Storm Drain Master Plan Update (Project):
(1) Award to MCC Engineering, Inc.;
(2) Authorize the Mayor to execute the Consulting and Professional Services Contract with MCC Engineering, Inc. for professional engineering services, including project management, data collection, survey, hydrologic and hydraulic modeling, and updating the Storm Drain Master Plan for a not-to-exceed fee of $539,364.00; and (3) Authorize the City Manager, or designee, to approve contract amendments for scope refinements and/or incorporation of optional tasks included in the Request for Proposal not-to-exceed $300,000.
Fiscal Impact
Funding for the project will come from the Community Development Block Grant – Disaster Recovery Planning and Public Service (CDBG DR PPS). On October 7, 2025, the City Council (Council) accepted and budgeted $1,000,000 in Federal funding for the Project. The CDBG DR PPS grant provides $900,000 in funding for consultant design services and $100,000 for City of Redding (City) staff for design support and grant management.
Alternative Action
The Council may choose not to award the contract for the Storm Water Master Plan Update to MCC Engineering, Inc. This alternative would delay the project and may eliminate opportunity for staff to analyze the existing data and update the City Master Storm Drain Plan. In addition, the City would risk forfeiting grant funding, necessitating the repayment of grant revenues received to date for grant management expenditures.
MEETING DATE: June 2, 2026
ITEM NO. 4.11(f)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(f)--Award Request for Proposal No. 5676 and Authorize Execution of Consulting and Professionals Services Contract for Storm Drain Master Plan Update Michael Webb, Assistant City
Manager/Public Works
Director
Packet Pg. 175
Report to Redding City Council May 28, 2026
Re: 4.11(f)--Award Request for Proposal No. 5676 Page 2 Background
The current City-Wide Master Storm Drain Study (Montgomery Watson) was developed in October of 1993 to formulate a plan for managing stormwater runoff that impacted areas within the City’s jurisdiction. Montgomery Watson also provided tools, in the form of hydrologic and hydraulic computer models and mapping that are needed to make drainage decisions. The purpose of the Storm Water Master Plan Update will be to fully analyze City Drainage Basins; Canyon Hollow, Oregon Gulch, Olney Creek, Bonnyview Drain, and Churn Creek, using updated topography and area development since the 1993 Montgomery Watson Study. The updated models will be used to support floodplain map revisions, future project development, and emergency management.
Consultant Selection Process
On February 17, 2026, Request for Proposal No. 5676 was advertised outlining the specific scope of work. Proposals, including design fees in sealed envelopes, were received on March 19, 2026 from two firms. A review and selection panel was formed with members from the Public Works Department. The panel’s evaluation was based upon the consultant’s ability and qualifications to perform the scope of work. Based upon proposal review, the panel ranked the firms as follows:
Rank
1 MCC Engineering, Inc (Palo Cedro, CA)
2 Schaaf & Wheeler (Truckee, CA)
Proposals were evaluated based on their understanding of the scope of work, ability to meet the proposed schedule and maintain the project budget, experience and qualifications of the proposed staff, project approach, and geographic location of the team. Applying the criteria to the proposals, the selection panel determined that MCC Engineering, Inc. (MCC) was more suited and qualified to provide the required services for this project.
MCC’s proposed fee was opened, evaluated and found reasonable based on the scope of services and overall budget. Federal funding requirements dictate that the consultant selection process be qualification-based, not by cost, as long as the fee is reasonable.
Staff recommends that the City Manager be authorized to increase the contract amount up to an additional $300,000 to perform optional tasks once the consultant has completed the initial scope of services. Using the consultant’s data, staff will assess which watersheds would most benefit from FEMA map processing based on factors such as the potential impacts to existing floodplain boundaries, anticipated community benefit, and the likelihood of improving the accuracy of current FEMA mapping. Authorizing the optional task at this stage provides flexibility to move forward with FEMA coordination only where it is determined to provide clear value and support the City’s long-term floodplain management objectives.
Environmental Review
This activity is not a project as defined by California Environmental Quality Act (CEQA) and no action is required at this time. Projects that are identified in the Master Plan Update will require individual CEQA review as they are implemented.
Packet Pg. 176
Report to Redding City Council May 28, 2026
Re: 4.11(f)--Award Request for Proposal No. 5676 Page 3 Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
Contract with MCC Engineering, Inc.
Packet Pg. 177
Packet Pg. 178
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 179
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 180
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 181
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 182
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 183
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 184
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 185
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 186
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 187
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 188
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 189
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 190
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 191
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 192
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 193
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 194
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 195
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676) Packet Pg. 196
Attachment: Contract with MCC Engineering, Inc. (4.11(f)--Award Request for Proposal No. 5676)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions relative to the City of Redding (City) Solid Waste Utility’s Material Recovery Facility (MRF) sort line:
(1) Approve and find that the sole-source purchase and installation of equipment from CP Manufacturing, LLC, is in accordance with Public Contract Code Section 3400 (c)(2) in order to match other products in use by the City;
(2) Authorize the City Manager, or designee, to execute the Goods Purchase and Service Agreement with CP Manufacturing, LLC, in an amount not-to-exceed $5,605,793.63; (3) Authorize the City Manager, or designee, to execute the CDTFA-230 Partial Tax Exemption Form;
(4) Authorize the City Engineer, or designee, to approve change orders to the Agreement up to $150,000; and
(5) Find that the project is categorically exempt from environmental review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities.
Fiscal Impact
The total cost for purchase and installation of the Solid Waste Utility (Utility) MRF sort line equipment is $5,605,793.63. In May 2025, the City Council (Council) adopted a budget resolution appropriating $4,091,020 in CalRecycle grant funds. In addition, the Utility previously budgeted $3,200,000 towards this project, for a combined total available budget of $7,291,020.
Any remaining Utility funds at project completion will be returned to the Utility account.
MEETING DATE: June 2, 2026
ITEM NO. 4.11(g)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(g)--Authorize and Approve Upgrades to the Solid Waste Utility Materials Recovery Facility Sort Line
Michael Webb, Assistant City
Manager/Public Works
Director
Packet Pg. 197
Report to Redding City Council May 28, 2026
Re: 4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility Page 2
Cost Summary
Item Estimated
Project Development Costs $40,000
Goods Purchase & Service Agreement $5,605,793.63
Contract Administration, Inspection, Testing $200,000
Additional City Engineer Funds $150,000
Total Project Costs $5,995,793.63
Total Project Budget $7,291,020
Alternative Action
The Council could choose not to approve and authorize the sole source purchase and installation of the MRF sort line equipment and provide staff alternate direction. If the project does not move forward the City will lose over $4 million dollars in grant funding and will continue to operate the sort line in a less efficient and costly manner.
Background/Analysis
The existing MRF sort line was completed in 2002 and has reached the end of its useful service life as it requires a great deal of downtime for repairs and maintenance. When the existing MRF is running properly, it is still unable to process the quantity of recyclables that are received on site, and requires the utility to send excess material to another facility costing the utility valuable funding and staff time.
Once the new equipment is purchased and installed it is anticipated that the Utility will be able to process the current amount of incoming recyclable material, while also providing capacity for future growth in the City. The new sort line will result in a decrease to the Utility’s expenses as well as in increase to the revenue by allowing the Utility to sort additional recycling material.
CP Manufacturing was the original system designer and installer providing unparalleled familiarity with the existing facility infrastructure, allowing for optimal integration of the new sort line equipment with existing support structures and systems. In addition, they also manufacture the equipment domestically therefore eliminating any tariff costs; have staff based in California and can provide same-day service; and have master planned our site to allow for a Phase Two expansion as technology continues to develop.
In accordance with Public Contract Code Section 3400(c)(2), the Council may make a finding for a material, product, or service by specific brand or trade name in order to match other products in use on a particular public improvement completed or in the course of completion.
Such finding would allow the benefits described above to be realized and are in the best interest of the City.
Environmental Review
Staff has determined that the project is categorically exempt from environmental review under California Environmental Quality Act Guidelines, pursuant to Sections 15301 - Existing Facilities. Class 1 exemptions include the minor alteration of existing public and private facilities, equipment, and topographical features involving negligible or no expansion of use.
Packet Pg. 198
Report to Redding City Council May 28, 2026
Re: 4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility Page 3
The existing MRF sort line equipment will be replaced, and the project will not result in an expansion of use. The action area does not have significant values for wildlife habitat or other environmental resources and the project has no potential to have a significant effect on the environment.
Council Priority/City Manager Goals
• 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
Goods Purchase and Service Agreement - CP Group
Previous Staff Report - May 2025
NOE Solid Waste MRF Improvements
Packet Pg. 199
Packet Pg. 200
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 201
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 202
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 203
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 204
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 205
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 206
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 207
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 208
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 209
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 210
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 211
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 212
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Benjamin L. Stock, Interim City Attorney
Packet Pg. 213
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 214
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 215
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 216
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 217
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 218
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 219
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 220
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 221
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 222
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 223
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 224
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Packet Pg. 225
Attachment: Goods Purchase and Service Agreement - CP Group (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Approve and ratify the City Manager’s signature accepting grant funding in the amount of $4,091,013 from CalRecycle to replace and upgrade the existing Solid Waste Utility’s Material Recovery Facility sort line; and
(2) Adopt Resolution approving and adopting the 78th Amendment to City Budget Resolution No. 2023-060 appropriating $4,091,020 in state grant funds for the project.
Fiscal Impact
The City of Redding’s (City) Solid Waste Utility’s Material Recover Facility (MRF) sort line project’s total cost is estimated to be $4,500,000 and will be funded by the California Department of Resources Recycling and Recovery (CalRecycle) Beverage Container Quality Infrastructure Grant Program funding and the Solid Waste Utility fund. The CalRecycle grant will provide $4,091,013 towards the project while Solid Waste Utility will provide the balance.
Note, the Solid Waste Utility has previously budgeted $3,200,000 towards this project. Any funds budgeted, but not used, for this project by the Solid Waste Utility will return to the Solid Waste Utility Account.
Alternative Action
The City Council (Council) may decline to accept this grant funding. By doing so, this project would need to be fully funded by the Solid Waste Utility, as CalRecycle would allocate these grant funds to another agency.
MEETING DATE: May 20, 2025
ITEM NO. 4.11(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(d)--Accept CalRecycle Grant Funding
Michael Webb, Public Works
Director
APPROVED
Packet Pg. 226 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility) Report to Redding City Council May 13, 2025
Re: 4.11(d) Accept CalRecycle grant Funding Page 2
Background/Analysis
The current MRF sort line was originally completed in 2002. The age and condition of the current equipment contributes to sort line downtime, due to the amount of maintenance and repairs needed. When operating properly, the current sort line can process three tons of recyclable material per hour. The amount of recyclable material collected currently exceeds the sorting capacity of the equipment, ultimately resulting in the Solid Waste Utility sending 910 tons of excess recyclable material (based on a four-year average) to another facility at a cost of $95 per ton not including staff time and equipment rates to transfer the material.
The upgraded sort line is expected to be able to process 10 tons of recyclable material per hour.
This upgraded capacity will allow all of the current recyclable material to be sorted, while also providing the capacity for future expected growth in the City’s recycling material collection.
Being able to process all incoming recyclable material will both decrease our expenses by significantly reducing the need to haul material to another facility, and increase our revenue by sorting additional recycling material.
On December 3, 2024, the Council adopted Resolution No. 2024-102 authorizing the submission of applications for all CalRecycle grants for which the City is eligible through December 3, 2029. The Resolution also authorized the City Manager, or designee, to execute in the name of the City all grant documents, applications, agreements, amendments, and requests for payment, necessary to secure grant funds and implement the approved grant project.
On April 28, 2025, CalRecycle notified the City that the grant request was approved for $4,091,013. The Grant agreement acceptance was required to be returned to CalRecycle by May 12, 2025. Due to the short turn around time the City Manager needed to sign the grant agreement and then have the signature ratified by Council.
Environmental Review
Funding acceptance is not a project as defined by the California Environmental Quality Act (CEQA), and no further action is required at this time. The future RMF sort line improvements will be reviewed for CEQA compliance and staff will return to Council for approval at contract award.
Council Priority/City Manager Goals
▪ Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Resolution
^QIG1 - Award RFA - signed
^City of Redding QIG1-22-0005 Grant Agreement
Reso. 2024-102 - Authorizing Submittal of Application(s) for all CalRecycle Grants Previous staff report 120324
APPROVED
Packet Pg. 227 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility) Resolution No. 2025 - ____________
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 78 th AMENDMENT TO CITY BUDGET RESOLUTION NO. 2023-060 APPROPRIATING $4,091,020 IN GRANT FUNDING FROM CAL RECYCLE TO REPLACE AND
UPGRADE THE EXISTING MATERIAL RECOVERY FACILITY (MRF) FOR FISCAL YEAR 2024-25
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2023-060 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
251 6505
Resource Recovery $4,091,020
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Increase (Decrease) Revenue
251-6505-3632001-00000 State Grant Capital - Solid Waste $ 4,091,020 Increase Expenditures
251-6505-7300004-00000 Building Improvements $ 4,091,020 Total $ 4,091,020 $ 4,091,020
THAT the purpose is to appropriate $4,091,020 in grant funding from CalRecycle for MRF Expansion project for fiscal year 2024-25.
I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 20th day of May, 2025 and was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
JACK MUNNS, Mayor
ATTEST: FORM APPROVAL:
SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney
APPROVED
Packet Pg. 228 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility)
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APPROVED
Packet Pg. 229 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility)
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Packet Pg. 231 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility)
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APPROVED
Packet Pg. 232 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility)
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APPROVED
Packet Pg. 233 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility) This document requires a digital signature to
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APPROVED
Packet Pg. 234 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING SUBMITTAL OF APPLICATION( S) FOR ALL
CALRECYCLE GRANTS FOR WHICH THE CITY OF REDDING IS
ELIGIBLE
WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California' s ( State) efforts to reduce, recycle and reuse solid waste generated in the State thereby preserving landfill capacity and protecting public health and safety, and the enviromnent; and
WHEREAS, in furtherance ofthis authority CalRecycle is required to establish procedures governing the application, awarding, and management ofthe grants; and WHEREAS, CalRecycle grant application procedures require, among other things, an applicant' s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants;
NOW, THEREFORE, the City Council RESOLVES as follows:
I To authorize the submittal of application to CalRecycle for all grants for which the City of Redding is eligible;
2. To authorize the City Manager, or designee, to execute in the name of the City of Redding all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project; and
3. To adopt these authorizations as effective for five ( 5) years from the date of adoption of this Resolution, until December 3, 2029.
I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 3` d
day of December, 2024, and was duly adopted
at said meeting by the following vote:
AYES: COUNCIL MEMBERS: - Johnson, Mezzano, Munns, Winter, and Audette NOES: COUNCIL MEMBERS: - None
ABSENT: COUNCIL MEMBERS: - None
ABSTAIN: COUNCIL MEMBERS: - None
enessa Audette, Mayor
0 WHIII 01 MMKlP1xx4y"] TI
APPROVED
Packet Pg. 235 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: December 3, 2024 FROM: Michael Webb, Public Works ITEIVI NO. 4. 11( e) Director
APPROVED BY***
c a bEi ' c r Cs I7 reetcsr 1 tf 12t}`? r5' p
i, C i r , f j,
mwebb@cityofredding. org btippin@cityofredding. org
SUBJECT: 4. 11( e) Adopt Resolution Authorizing Submission of Applications for all California Department of Resources Recycling and Recovery ( CalRecycle) Grants for Five Years
Recommendation
Approve and adopt the following:
1) Adopt Resolution authorizing the submission of all California Department of Resources Recycling and Recovery grant application( s) for which the City of Redding is eligible for a five- year period from December 3, 2024 through December 3, 2029. This authorization includes applying for the Beverage Container Quality Infrastructure Grant program in the amount of $4, 091, 013 to upgrade and replace various sorting equipment in the City of Redding' s Material Recovery Facility on Abernathy Lane; and 2) Authorize the City Manager, or designee, to execute all grant documents necessary to complete the application process.
Fiscal Impact
There is no fiscal impact in approving the resolution. If the City of Redding ( City) submits a successful application for the Beverage Container Quality Infrastructure Grant ( BCQIG) Program it would receive a $ 4, 091, 013 allocation from California Department of Resources Recyeling and Recovery ( CalRecycle) with no required matching funds. This resolution allows the submission of subsequent grant applications through December 3, 2029.
Alternative Action
The City Council ( Council) could decline to authorize the resolution for grants to CalRecycle which would result in the City not applying or receiving any funding through the BCQIG Program. Further, a grant specific Council resolution would be required for each CalRecycle grant opportunity going forward.
APPROVED
Packet Pg. 236 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility) Report to Redding City Council November 26, 2024
Re: 4. 12( e) Authorize CalRecycle Resolution Page 2
Background/Analysis
Each year, CalRecycle presents several opportunities to apply for grants. CalRecycle has developed a process for jurisdictions to streamline the submittals of grant applications whereby the governing body of the jurisdiction may pass a multi-year grant application resolution. The City previously adopted a multi- year Resolution, No. 2016- 107, on December 14, 2016, and No. 2022- 001, on January 18, 2022. The prior resolution expires during the grant term of the BCQIG Program, requiring a new resolution to be approved in order to complete the application process.
Pursuant to the City' s Grant Administration Policy Directives and Procedures Manual ( Grant Administration Policy), all grant applications over $ 50, 000 require Council approval. If the grant is awarded and the sum is over $ 25, 000, staff wi11 obtain Council approval. All CalRecycle grant applications and awards will comply with the City' s Grant Administration Policy. During the proposed five- year grant resolution term, a new resolution for applications will not be necessary.
The Public Works Department plans to submit and apply for funding through the CalRecycle BCQIG Program. This is a competitive grant program that will provide one-time funding to assist with infrastructure costs in improving the quality of material sorting to create cleaner streams of recycled beverage containers substantially free from contaminates.
The City is requesting funding to support replacing and upgrading equipment on the material recovery sorting line, including adding robotic arms and AI software to help sort material.
Environmental Review
This activity is not a project as defined by the California Environmental Quality Act, and no further action is required.
Council P io ity/City Manager Goals
Budget and Financial Management—" Achieve balanced and stable 10- year Financial Plans for all funds."
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
APPROVED
Packet Pg. 237 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility) RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING SUBMITTAL OF APPLICATION( S) FOR ALL
CALRECYCLE GRANTS FOR WHICH THE CITY OF REDDING IS
ELIGIBLE
WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery( CalRecycle) to administer various grant programs ( grants) in furtherance of the State of California' s ( State) efforts to reduce, recycle and reuse solid waste generated in the State thereby preserving landfill capacity and protecting public health and safety, and the environment; and
WHEREAS, in furtherance ofthis authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and WHEREAS, CalRecycle grant application procedures require, among other things, an applicant' s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants;
NOW, THEREFORE, the City Council RESOLVES as follows:
1. To authorize the submittal of application to CalRecycle for all grants for which the City of Redding is eligible;
2. To authorize the City Manager, or designee, to execute in the name of the City of Redding all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project; and
3. To adopt these authorizations as effective for five ( 5) years from the da e of adoption of this Resolution, until December 3, 2029.
I I-IEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the
3rd day of December, 2024, and was duly adopted
at said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
Mayor
ATTEST: APPROVED AS TO FORM:
SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney
APPROVED
Packet Pg. 238 Attachment: Previous Staff Report - May 2025 (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery Facility) Packet Pg. 239
Attachment: NOE Solid Waste MRF Improvements (4.11(g)--Authorize and Approve Upgrading the Solid Waste Utility Materials Recovery
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following actions related to the biennial review of Redding Municipal Code Section 2.90 (Conflict of Interest Code):
(1) Give notice to City of Redding (City) departments and agencies that the City’s Conflict of Interest Code is to be reviewed, and revised if necessary, pursuant to Government Code Section 87306.5(a);
(2) Direct the City Clerk to advise all City departments and agencies to review the current list of designated positions and disclosure categories to determine if any revisions are necessary and to provide said revisions to the City Clerk by July 31, 2026; and (3) Direct the City Clerk to prepare and present to the City Council for adoption any necessary revisions to the City’s Conflict of Interest Code within 90 days of receiving notification that revisions are necessary and, if no revisions are necessary, the City Clerk shall so advise the City Council.
Fiscal Impact
There is no fiscal impact associated with this review of the City of Redding’s (City) Conflict of Interest Code and designated employee list.
Alternative Action
The City Council could decline to take any action; in which case, the City would not be in compliance with Government Code Section 87306.5(a).
MEETING DATE: June 2, 2026
ITEM NO. 4.12(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.12(a)--Notice of biennial review regarding the City of Redding's Conflict of Interest Code
Sharlene Tipton, City Clerk
Packet Pg. 240
Report to Redding City Council May 28, 2026
Re: 4.12(a)--Notice of Biennial Review re Conflict of Interest Code Page 2 Background/Analysis
The California Government Code requires every public agency to adopt a Conflict of Interest Code (Code) and to conduct a biennial review (during even numbered years) of its designated positions that are required to file an annual Statement of Economic Interests - Form 700 and amend as necessary.
The law requires the City Council, as the Code reviewing body, to provide notice of its biennial review, and to direct staff and all affected agencies to conduct a review of the current list of designated positions and disclosure categories to determine if any revisions to the Code are necessary. The current list of designated positions and the master list of categories are attached for reference.
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
• 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
Appendix A - 2024 List of Designated Employee Positions for FPPC Annual Form 700 Filing Appendix B - Master List of Disclosure Categories
2026 Local Agency Notice Instructions
Packet Pg. 241
Appendix A
DESIGNATED POSITIONS
City of Redding - 2024
City Dept/Division
Assigned
Disclosure Category
City Attorney
134 Assistant City Attorney II 1
135 Assistant City Attorney I 1
151 Deputy City Attorney 1
090 Risk Manager 1
City Clerk
096 City Clerk 1
098 Administrator of the Office of the City Clerk 1
109 Reprographics Manager 2,3,4
187 Assistant City Clerk 1
231/232 Management Analyst I/II 1
City Manager
012 Assistant City Manager 1
018 Deputy City Manager 1
075 Airports Manager 1
138 Planning Manager/Community Development Manager 1
175 Management Assistant to City Manager 1
202 Transit Manager 2,3,4,6,7
209 Assistant Airports Manager 2,3,4
231/232 Management Analyst I/II (Airports; RABA) 2,3,4,6,7 City Treasurer/Finance
60 Finance Officer 1
64 Director of Finance 1
099 Administrator of the Office of the City Treasurer 1 166 Purchasing Officer 1
188 Deputy City Treasurer 1
231/232 Management Analyst I/II 1
238 Buyer 2,3,4
239 Senior Buyer 2,3,4
Community Services
050 Assistant Director of Community Services 1
051 Communications Manager 5
052 Director of Community Services 1
092 Parks & Facilities Manager 1
146 Senior Project Coordinator - Community 5
158 Associate Project Coordinator - Community 5
159 Assistant Project Coordinator - Community 5
160 Facility Supervisor 5
165 Parks Superintendent 5
169 Recreation Superintendent 5
Development Services
043 Director of Development Services 1
071 Asst Director of Development Services/Building Official 1 119 Senior Planner 1
138 Planning Manager/Community Development Manager 1
153 Deputy Building Official 1
211 Code Enforcement Supervisor 1
222 Development Services Supervisor 1
Job Code / Position / Title
Packet Pg. 242 Attachment: Appendix A - 2024 List of Designated Employee Positions for FPPC Annual Form 700 Filing (4.12(a)--Notice of Biennial Review re Appendix A
DESIGNATED POSITIONS
City of Redding - 2024
City Dept/Division
Assigned
Job Code / Position / Title Disclosure Category
Electric Utility
030 Director of Electric Utility 1
031 Assistant Director-Electric Utility 1
041 Electric Program Supervisor - Meter Shop 2,3,4,6
054 Cyber Security Officer 1
058 Electric Program Supervisor - Operational Technology 2,3,4,6 059 Electric Program Supervisor - Power Production 2,3,4,6 061 Electric Manager - Energy Management 1
062 Electric Program Supervisor - Transmission & Distribution 2,3,4,6 063 Electric Manager - Customer Services and Metering 1 066 Compliance Officer 1
067 Electric Manager - Operational Technology 1
068 Operations/Compliance Engineer 2,3,4,6
069 Electric Manager-Financial 1
076 Electric Manager-Power Production 1
077 Electric Manager-Line 1
078 Electric Program Supervisor-Line 2,3,4,6
080 Electric Program Supervisor-Substations 2,3,4,6
081 Electric Manager 1
082 Electric Program Supervisor 2,3,4,6
083 Electric Manager - Engineering 1
084 Electric Manager - Operations 1
086 Electric Manager-Resources 1
087 Electrical Engineering Supervisor 2,3,4,6
088 Electric Program Supervisor-Energy Management 2,3,4,6 089 Electric Program Supervisor-Service Planning 2,3,4,6 116 Electric Utility Resource Planner 2
120 Safety and Environmental Compliance Coordinator 2
155 Electric Utility Senior Project Engineer 2,3,4,6
181 Senior Electric Utility Distribution Planner/System Inspector
2,3,4,6
195 Electric Utility Associate Resource Planner 2
243 Senior Project Coordinator - Technical 1
267 Electric Utility Analyst - Risk and Pricing 2
266 Electric Utility Analyst - Power Settlements 2
260 Electric Utility Senior Resource Planner 2
273 Electric Program Supervisor - Vegetation
Management
2,3,4,6
275 Electric Program Superivsor - Customer Service 2,3,4,6 276 Electric Program Supervisor - Compliance 2,3,4,6
277 Electric Program Supervisor - Settlements 2,3,4,6
278 Electric Program Supervisor - Financial Services 2,3,4,6 308 Electric Utility Senior System Operator - Power 2
311 Electric Utility System Operator-Power 2
Fire
040 Fire Chief 1
042 Deputy Fire Chief 1
126 Battalion Chief/Division Chief/Fire Marshal 1
133 Battalion Chief-Shift 2,3
164 Assistant Fire Marshal 1
231/232 Management Analyst I/II 1
Packet Pg. 243 Attachment: Appendix A - 2024 List of Designated Employee Positions for FPPC Annual Form 700 Filing (4.12(a)--Notice of Biennial Review re Appendix A
DESIGNATED POSITIONS
City of Redding - 2024
City Dept/Division
Assigned
Job Code / Position / Title Disclosure Category
Information Technology
054 Cyber Security Officer 1
094 Director of Information Technology/Chief Information Office 1 176 Information Technology Supervisor 1
182 Geographic Information Systems Manager 1
230 Associate Project Coordinator - Technical 1
243 Senior Project Coordinator - Technical 1
Personnel
056 Senior Personnel Analyst 1
065 Personnel Director 1
090 Risk Manager 1
095 Personnel Manager 1
215 Personnel Analyst II 1
Police
035 Chief of Police 1
114 Police Captain 2
Public Works
020 Director of Public Works 1
024 Public Works Manager - Financial 1
072 Environmental Compliance Manager 3,4,6
074 Construction Manager 3,4,6
093 Deputy Director of Public Works 1
106 Assistant Director of Public Works 1
124 Senior Civil Engineer 3,4,6
125 Street Maintenance Superintendent 1
130 Fleet Manager 2
167 Safety Specialist 3,4,6
216 City Surveyor 1
226 Assistant Project Coordinator - Technical 1
231/232 Management Analyst I/II 1
252 Municipal Utility Manager-Water/Wastewater System 2 252 Municipal Utility Manager-Solid Waste 2
City Agencies Assigned Disclosure
Category per Agency's
Adopted Code
Redding Capital Services Corporation (RCSC)
011 City Manager 1
064 Director of Finance 1
Board Members 1
* Consultants 1
General Counsel 1
Redding Housing Authority (RHA)
011 City Manager 1
012 Assistant City Manager 1
138 Planning/Community Development Manager 1
064 Director of Finance 1
099 City Treasurer 1
103 Housing Manager 2,3,4,6,7 Packet Pg. 244 Attachment: Appendix A - 2024 List of Designated Employee Positions for FPPC Annual Form 700 Filing (4.12(a)--Notice of Biennial Review re Appendix A
DESIGNATED POSITIONS
City of Redding - 2024
City Dept/Division
Assigned
Job Code / Position / Title Disclosure Category
173 Housing Program Supervisor 2,3,4,6,7
210 Senior Housing Specialist 2,3,4,6
231/232 Management Analyst I/II 2,3,4,6
Commissioners 1
* Consultants 1
General Counsel 1
Housing Administrator (City Manager Designee) 1
Redding Joint Powers Financing Authority (RJPFA)
011 City Manager 1
064 Director of Finance 1
Board Members 1
* Consultants 1
General Counsel 1
Redding Municipal Library Board
052 Director of Community Services 1
064 Director of Finance 1
Board of Trustees Member(s) 1
* Consultant-Library Systems & Services, LLC (LLSI) 1
Executive Director 1
General Counsel 1
City of Redding as Successor Agency to the Redding Redevelopment Agency 011 City Manager 1
012 Assistant City Manager 1
064 Director of Finance 1
099 City Treasurer 1
Agency Member(s) 1
General Counsel 1
City Boards/Commissions/Committees
Member-Administrative Hearings Board 1
Member-Board of Administrative Review 3,4,6
Member-Community Development Advisory Committee 1
Member-Community Services Advisory Commission 5
Member-Shasta Public Library Citizens Advisory Committee 8 Member-Building Code Board of Appeals 3,4,6
Consultants*
William Avery Associates 1
Library Systems & Services, LLC (LSSI) 1
George Hills Company, Inc. & Local Representative 1
*Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the Conflict of Interest Code, subject to the following limitations:
The City Manager, or designee, may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that are limited in scope, and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The determination of the City Manager, or designee, is a public record and shall be retained for public inspection in the same manner and locations as this Conflict of Interest Code.
Packet Pg. 245 Attachment: Appendix A - 2024 List of Designated Employee Positions for FPPC Annual Form 700 Filing (4.12(a)--Notice of Biennial Review re
APPENDIX B
LIST OF DISCLOSURE CATEGORIES SPECIFICATION SHEET
REPORTABLE INVESTMENTS, INTERESTS IN REAL PROPERTY AND INCOME
CONFLICT OF INTEREST CODE
FOR THE CITY OF REDDING AND RELATED AGENCIES
Disclosure Category
1 All investments and business positions in business entities, sources of income, and interests in real property in the City of Redding or property located within a two-mile radius of any property owned or used by the City of Redding or it’s related agencies, whether in the City or not.
2 Investments and business positions in business entities, and sources of income from entities providing supplies, services, equipment, or machinery of the type used by the designated employee's unit.
3 Investments and business positions in business entities, and income from sources engaged in construction, building, or material supply.
4 Investments and business positions in, and income from sources engaged in, the construction of public works projects.
5 All reportable interests in real property located in the City and located within or outside the City if within a two-mile radius of any open space or park property owned or used by the City. All reportable business positions, investments, or income for any person, firm or entity which supplies goods or services to the Community Services Department of the City of Redding, including businesses with leaseholds in City parks, construction firms, recreational equipment supplyfirms, financial institutions, aquatic equipment or supply firms or landscape design or maintenance businesses. 6 All real property, all investment in, all business positions in, or income from construction firms, building supply firms, engineering firms, architecture firms and financial institutions.
7 Investments and business positions in business entities, and sources of income from entities involved in any business relationship with any entity having a history of making applications before the board or commission which the designated position serves on.
8 Investments and business positions in business entities, and sources of income from entities providing supplies, services, equipment or machinery of the type used by the Redding Main Library, the Burney Branch Library or the Anderson Branch Library.
Packet Pg. 246 Attachment: Appendix B - Master List of Disclosure Categories (4.12(a)--Notice of Biennial Review re Conflict of Interest Code) [email protected] 1.866.275.3772 or 916.322.5660
www.fppc.ca.gov FPPC • 076-04.2026 • Page 1 of 1
FAIR POLITICAL PRACTICES COMMISSION
2026 Conflict of Interest Code
Biennial Notice Instructions for Local Agencies
The Political Reform Act requires every local government agency to review its conflict of interest code biennially. A conflict of interest code tells public officials, governmental employees, and consultants what financial interests they must disclose on their Statement of Economic Interests (Form 700).
By July 1, 2026: The code reviewing body must notify agencies and special districts within its jurisdiction to review their conflict of interest codes.
By October 1, 2026: The biennial notice must be filed with the agency’s code reviewing body.
The FPPC has prepared a 2026 Local Agency Biennial Notice form for local agencies to complete or send to agencies within its jurisdiction to complete before submitting to the code reviewing body. The City Council is the code reviewing body for city agencies. The County Board of Supervisors is the code reviewing body for county agencies and any other local government agency whose jurisdiction is determined to be solely within the county (e.g., school districts, including certain charter schools). The FPPC is the code reviewing body for any agency with jurisdiction in more than one county and will contact them.
The Local Agency Biennial Notice is not forwarded to the FPPC.
If amendments to an agency’s conflict of interest code are necessary, the amended code must be forwarded to the code reviewing body for approval within 90 days. An agency’s amended code is not effective until it has been approved by the code reviewing body.
If you answer yes, to any of the questions below, your agency’s code probably needs to be amended.
• Is the current code more than five years old?
• Have there been any substantial changes to the agency’s organizational structure since the last code was approved?
• Have any positions been eliminated or re-named since the last code was approved? • Have any new positions been added since the last code was approved? • Have there been any substantial changes in duties or responsibilities for any positions since the last code was approved?
If you have any questions or are still not sure if you should amend your agency’s conflict of interest code, please contact the FPPC. Additional information including an online webinar regarding how to amend a conflict of interest code is available on FPPC’s website.
Packet Pg. 247 Attachment: 2026 Local Agency Notice Instructions (4.12(a)--Notice of Biennial Review re Conflict of Interest Code)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve and adopt the following resolutions relative to the City of Redding’s General Municipal Election to be held on Tuesday, November 3, 2026:
(1) Resolution adopting standards for candidates relative to nomination period, candidate statement preparation and cost, as well as ballot designation; and (2) Resolution requesting that the Board of Supervisors of the County of Shasta consolidate the General Municipal Election with the Statewide General Election.
Fiscal Impact
The current budget provides approximately $70,000 for the Consolidated General Municipal Election to be held November 3, 2026. This figure represents an estimate - as actual election costs are unknown until the conclusion of the election and costs are allocated accordingly.
Alternative Action
The City Council (Council) could decline to adopt the resolutions and provide alternative direction to staff.
Background/Analysis
The City of Redding (City) Municipal Code Section 2.17.010 states the general municipal election shall be consolidated with and held on the same day as the statewide general election. At the election to be held on Tuesday, November 3, 2026, three City Council Member positions and the City Clerk position will appear on the ballot.
MEETING DATE: June 2, 2026
ITEM NO. 4.12(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.12(b)--Resolutions regarding November 3, 2026, general municipal election Sharlene Tipton, City Clerk
Packet Pg. 248
Report to Redding City Council May 28, 2026
Re: 4.12(b)--Resolutions - November 3, 2026, General Municipal Election Page 2 Traditionally, the City has contracted with the County of Shasta to provide consolidated election services. Therefore, pursuant to the State of California Elections Code Section 10403, the City must adopt a resolution requesting that the Board of Supervisors of the County of Shasta to consolidate the elections.
The nomination period begins Monday, July 13, 2026, and closes at 5:00 p.m., Friday, August 7, 2026. If an incumbent does not file nomination papers by the close of the nomination period, the filing deadline will be extended to 5:00 p.m. on Wednesday, August 12, 2026, only for nonincumbent candidates for that office.
In accordance with Elections Code Section 13307, and to ensure candidates are aware of the City’s standards relative to the nomination process, staff recommends that the Council adopt a resolution providing standards for candidates for elective office. The resolution includes the following:
• Candidate statement requirements, as well as cost; and • Ballot designation regulations.
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
• 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
Resolution - Consolidate election with County of Shasta Resolution - Candidate Standards
Packet Pg. 249
RESOLUTION NO. 2026-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
REQUESTING THAT THE BOARD OF SUPERVISORS OF THE COUNTY
OF SHASTA CONSOLIDATE A GENERAL MUNICIPAL ELECTION
WITH THE STATEWIDE GENERAL ELECTION ON TUESDAY,
NOVEMBER 3, 2026
WHEREAS, pursuant to Redding Municipal Code Section 2.17.010, the City of Redding’s (City) general municipal election shall be held on Tuesday, November 3, 2026; and WHEREAS, it is desirable that the general municipal election be consolidated with the Statewide General Election to be held on Tuesday, November 3, 2026, and that, within the City, precincts, polling places, and election officers of the two elections be the same, and that the Shasta County Elections Department canvass the returns of the general municipal election, and that the election be held in all respects as if there was only one election;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER, AS FOLLOWS:
1. Pursuant to the requirements of Elections Code Section 10403:
(a) The Board of Supervisors of the County of Shasta is hereby requested to consent and agree to the consolidation of a general municipal election with the statewide general election on Tuesday, November 3, 2026.
(b) The offices and measures to be voted upon at the election on Tuesday, November 3, 2026, are as follows:
- Three City Council seats (four-year terms);
- City Clerk (four-year term); and
- Any City ballot measure timely approved for placement consistent with Elections Code Section 10403.
(c) The election shall be conducted in all respects as a single consolidated election, and only one ballot form shall be used.
2. The County Elections Department is authorized to canvass the returns of the general municipal election. The Election shall be held in all respects as if there was only one election and only one form of ballot shall be used.
3. The Board of Supervisors is requested to issue instructions to the County Elections Department to take any and all steps necessary for holding the consolidated election.
Packet Pg. 250 Attachment: Resolution - Consolidate election with County of Shasta (4.12(b)--Resolutions - November 3, 2026, General Municipal Election)
4. The City shall reimburse the County for the City’s proportionate share of all reasonable and actually incurred consolidation costs, as invoiced by the County.
5. The City Clerk is directed to file a certified copy of this Resolution with the Shasta County Board of Supervisors and the Shasta County Elections Department.
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 2nd day of June, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
___________________________________________
MIKE LITTAU, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________________ SHARLENE TIPTON, City Clerk BENJAMIN L. STOCK, Interim City Attorney Packet Pg. 251 Attachment: Resolution - Consolidate election with County of Shasta (4.12(b)--Resolutions - November 3, 2026, General Municipal Election) RESOLUTION NO. 2026-_____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING, CALIFORNIA, ADOPTING STANDARDS FOR
CANDIDATES FOR ELECTIVE OFFICE FOR THE GENERAL
MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER
3, 2026
WHEREAS, in accordance with Redding Municipal Code Section 2.17.010, the City of Redding’s (City) general municipal election shall be consolidated with and held on the same day as the statewide general election; and
WHEREAS, Section 13307 of the State of California Elections Code (Elections Code) provides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidate’s statement; and
WHEREAS, the City wishes to establish standards for candidates to follow for said election, including, but not limited to, candidate statements, ballot designations, and deadlines for filing nomination papers;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER, AS FOLLOWS:
1. The nomination period begins July 13, 2026, and ends August 7, 2026. If an incumbent eligible for re-election does not file by the close of the nomination period, the nomination period is extended for non-incumbents onlythrough Wednesday, August 12, 2026. Pursuant to Elections Code Sections 10220-10225, nomination papers shall be filed with the City Clerk during posted regular business hours no later than the applicable deadline. In circumstances where the incumbent is not eligible for election, the nomination period shall not be extended.
2. Pursuant to Elections Code Section 13307, each candidate for elective office to be voted for at the election to be held on Tuesday, November 3, 2026, may prepare a candidate statement on an appropriate form provided by the City Clerk. The statement may include the name, age, and occupation of the candidate and a brief description of no more than 200 words of the candidate’s education and qualifications expressed by the candidate himself or herself. It may not, however, include the party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed, in typewritten and electronic format, in the office of the City Clerk at the time the candidate’s nomination papers are filed, along with the estimated fee. The statement may be withdrawn, but not changed, during the period of filing nomination papers and until 5:00 p.m. of the next working day after the closing of the nomination period.
Packet Pg. 252 Attachment: Resolution - Candidate Standards (4.12(b)--Resolutions - November 3, 2026, General Municipal Election)
3. The City Clerk shall estimate the total cost of printing, translating (if applicable), handling and distributing candidate statements. The estimate is not binding, and actual charges may be higher or lower depending on the number and length of statements and the languages requiring translation. The City Clerk shall require the candidate(s) to pay the estimated pro rate share as a condition of having the candidates’ statements included in materials distributed to voters. After actual costs are determined, the City Clerk shall bill or refund candidates on a pro rata basis.
Candidates shall pay any balance due, and overpayments shall be refunded, within thirty (30) business days of invoice. If a candidate claims indigency, Elections Code Section 13309 applies.
4. The City Clerk shall apply the California Secretary of State’s ballot designation regulations to all ballot designation reviews for the City’s election.
5. No candidate will be permitted to include additional materials in the sample ballot package.
6. Nothing in this Resolution is intended to, nor shall it be construed to, relieve, excuse, or exempt any candidate, committee, officer, employee, or other person from compliance with the California Elections Code, the Political Reform Act, and all other applicable federal, state, and local laws, regulations, and requirements. Any obligations imposed by this Resolution are in addition to, and not in lieu of, any such legal requirements.
7. The City Clerk shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nominating petitions are issued.
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 2nd day of June, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
___________________________________
MIKE LITTAU, Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ________________________________________ SHARLENE TIPTON, City Clerk BENJAMIN L. STOCK, Interim City Attorney Packet Pg. 253 Attachment: Resolution - Candidate Standards (4.12(b)--Resolutions - November 3, 2026, General Municipal Election)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution relative to City of Redding’s Electric System Refunding Revenue Bonds to:
(1) Authorize the issuance of Electric System Refunding Revenue Bonds, Series 2026, in an amount not-to-exceed $28 million for the purpose of refunding the outstanding Electric System Revenue Bonds, 2015 Series A;
(2) Authorize the City Manager, or designee, to execute and deliver an Indenture, a Purchase Contract and a Continuing Disclosure Agreement;
(3) Approve the form of the Preliminary Official Statement; and (4) Authorize the City Manager, or designee, to execute any and all documents and taking of all necessary actions related to the financing.
Fiscal Impact
The proposed refunding bonds will refinance the outstanding Redding Joint Powers Financing Authority, Electric System Revenue Bonds, 2015 Series A, payable from Electric Utility (Utility) Net Revenues. The transaction is expected to generate an estimated savings of approximately $1.46 million, based on market conditions as of May 6, 2026, with an estimated true interest cost of approximately 2.81 percent. No General Fund resources are pledged. Debt service will continue to be paid solely from Utility revenues. The refunding supports long-term financial planning and balance within the Utility five-year financial plan. The refunding will not increase the outstanding principal amount or extend the final maturity of the existing debt.
Alternative Action
The City Council may elect not to authorize the issuance of the refunding bonds. This action would result in the City of Redding (City) foregoing the opportunity to achieve debt service savings under current market conditions and would maintain existing higher interest rate obligations.
MEETING DATE: June 2, 2026
ITEM NO. 9.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(b)--Consider authorization of issuance of Electric System Refunding Revenue Bonds Series 2026 to refund the remaining Redding Joint Powers Financing Authority, Electric System Revenue Bonds, 2015 Series A.
Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 254
Report to Redding City Council May 28, 2026
Re: 9.5(b)--Consider Authorization of Bond Refunding 2015A Page 2 Background/Analysis
In 2015, the City entered into an Installment Sale Agreement with the Redding Joint Powers Financing Authority (Authority) to finance the 2005 Electric System Project and the 2015 Electric System Project. Those projects included building acquisition, capital improvements and infrastructure investments necessary to maintain reliability, capacity, and operational efficiency of the Electric System. Bonds were issued by the Authority in 2015 to fund those improvements, and the City is currently obligated to make installment sale payments from Electric System Net Revenues. Approximately $23.8 million of those obligations remain outstanding. Staff has evaluated current municipal market conditions and determined that refunding the 2015 obligations at lower interest rates will produce measurable debt service savings while maintaining the Utility’s strong credit profile.
The proposed City of Redding Electric System Refunding Revenue Bonds, Series 2026, will be issued in a principal amount not to exceed $28,000,000. Proceeds will be used to refund the outstanding 2015 obligations and pay costs of issuance. The bonds will be secured by a pledge of Net Revenues of the Electric System on parity with existing Electric System revenue obligations.
The bonds do not constitute a debt of the General Fund, and neither the faith and credit nor the taxing power of the City is pledged.
The Utility is targeting a minimum net present value savings of 5 percent of the refunded amount; however, in challenging market conditions, the Utility may proceed with a refunding that achieves at least 3 percent net present value savings, which is within the reasonable savings threshold identified by the Government Finance Officers Association. As of the pricing analysis dated May 6, 2026, the estimated true interest cost is approximately 2.81 percent, with projected net present value savings of approximately $1.28 million (5.39 percent). Final pricing will depend on market conditions at the time of sale.
The refunding supports the City’s commitment to maintaining balanced financial plans across all funds. Professional services for this financing include Orrick, Herrington & Sutcliffe LLP as Bond Counsel, Stradling Yocca Carlson & Rauth LLP as Disclosure Counsel, PFM Financial Advisors LLC as Municipal Advisor, and J.P. Morgan Securities LLC as Underwriter.
The Resolution Authorizing Issuance of Bonds formally authorizes the issuance of the refunding bonds, approves execution of the Indenture, Continuing Disclosure Agreement, and Purchase Contract, and authorizes distribution of the Preliminary Official Statement. The Indenture establishes the legal framework for the bonds, including security provisions, rate covenants, flow of funds, events of default, and responsibilities of the Trustee. The Preliminary Official Statement and Official Statement provide comprehensive disclosure to investors regarding the Electric System, the City’s financial condition, risks associated with the bonds, and detailed descriptions of the security and repayment structure.
The Purchase Contract sets forth the terms under which J.P. Morgan Securities LLC will purchase the bonds, including pricing parameters, underwriting discount, representations of the parties, and closing conditions. The Continuing Disclosure Agreement outlines the City’s ongoing obligations to provide annual financial information and notice of specified material events in compliance with SEC Rule 15c2-12. The Direction to Mail Conditional Notice of Redemption instructs the Trustee to provide formal notice of redemption of the 2015 bonds, contingent upon successful issuance of the Series 2026 Bonds. Appendix B – Certain Packet Pg. 255
Report to Redding City Council May 28, 2026
Re: 9.5(b)--Consider Authorization of Bond Refunding 2015A Page 3 Information Concerning the City provides demographic, economic, and governmental background information relevant to investors’ evaluation of the Electric System and the City’s broader financial environment.
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.”
Attachments
Resolution
Previous Staff Report - November 3, 2015, 2015 Series A Bonds Indenture
Direction to Mail Conditional Notice of Redemption
Direction to Redeem Bonds
Purchase Contract
Continuing Disclosure Agreement
Official Statement
Packet Pg. 256
OHS Draft
Distributed 5/18/26
4131-3255-3572.2
RESOLUTION NO. 2026-_____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING THE ISSUANCE OF ELECTRIC SYSTEM REFUNDING
REVENUE BONDS, THE EXECUTION AND DELIVERY OF AN
INDENTURE, A CONTINUING DISCLOSURE AGREEMENT, A
PURCHASE CONTRACT, AND AN OFFICIAL STATEMENT AND
APPROVING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL
STATEMENT; AND AUTHORIZING THE EXECUTION OF
DOCUMENTS AND THE TAKING OF ALL NECESSARY ACTIONS
RELATING THERETO
WHEREAS, pursuant to the 2015 Installment Sale Agreement, dated as of December 1, 2015 (the “2015 Installment Sale Agreement”), by and between the City of Redding (the “City”) and the Redding Joint Powers Financing Authority (the “Authority”), the City heretofore determined to make installment sale payments to the Authority for purchase of the 2005 Electric System Project and the 2015 Electric System Project (as defined in the 2015 Installment Sale Agreement); and
WHEREAS, the City has determined that it is in the best interests of the City and its residents to refund all or a portion of the City’s obligation to make installment sale payments under the 2015 Installment Sale Agreement (the “2015 Installment Sale Payments”) through the issuance and sale of electric system revenue bonds to be designated “City of Redding Electric System Refunding Revenue Bonds, Series 2026” (the “Bonds”); and WHEREAS, to provide for the issuance and payment of the Bonds, the City desires to enter into an Indenture (the “Indenture”) with U.S. Bank Trust Company, National Association, as Trustee (the “Trustee”); and
WHEREAS, the City will enter into a Purchase Contract (the “Purchase Contract”) with J.P.
Morgan Securities LLC (the “Underwriter”); and
WHEREAS, in order to assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2-12, the City will execute and deliver a continuing disclosure agreement (the “Continuing Disclosure Agreement”); and
WHEREAS, there have been submitted and are on file with the City Clerk proposed forms of the Indenture, Purchase Contract, Continuing Disclosure Agreement and an Official Statement (as defined below) with respect to the Bonds; and
WHEREAS, the City has engaged Orrick, Herrington & Sutcliffe LLP as bond counsel, Stradling Yocca Carlson & Rauth LLP as disclosure counsel, and PFM Financial Advisors LLC as municipal advisor (the “Municipal Advisor”) with respect to the Bonds; and WHEREAS, California Government Code Section 5852.1 requires that the City Council obtain from an underwriter, financial advisor or private lender and disclose, prior to authorization of the issuance of bonds with a term of greater than 13 months, good faith estimates of the following information in a meeting open to the public: (a) the true interest cost of the bonds, (b) the sum of Packet Pg. 257 Attachment: Resolution (9.5(b)--Consider Authorization of Bond Refunding 2015A) -2-
4131-3255-3572.2
all fees and charges paid to third parties with respect to the bonds, (c) the amount of proceeds of the bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the bonds, and (d) the sum total of all debt service payments on the bonds calculated to the final maturity of the bonds plus the fees and charges paid to third parties not paid with the proceeds of the bonds; and WHEREAS, in compliance with Government Code Section 5852.1, the City Council has obtained from the Municipal Advisor the required good faith estimates and such estimates are disclosed and set forth on Exhibit A attached hereto;
NOW THEREFORE, the City Council of the City of Redding hereby finds, determines, declares and resolves as follows:
Section 1. All of the recitals set forth above are true and correct, and the City Council so finds and determines.
Section 2. The City Council hereby approves the issuance of the Bonds, in an aggregate principal amount not to exceed $28,000,000.00, to refinance the 2005 Electric System Project and the 2015 Electric System Project. The officers of the City are hereby directed to perform the duties, if any, imposed upon the City by the provisions of the financing documents approved herein, including the Indenture, and the Director of Finance of the City is hereby authorized and directed to hold the funds and accounts created in said financing documents and directed or permitted to be held by the City.
Section 3. The proposed form of Indenture by and between the City and the Trustee, on file with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver an indenture in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the Bonds shall mature no later than June 1, 2035, and the interest rates result in a true interest cost for the Bonds of not to exceed six percent (6.00%) per annum.
Section 4. The proposed form of Purchase Contract, by and between the Underwriter and the City, on file with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is each hereby authorized and directed, on behalf of the City, to execute and deliver a purchase contract in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, the underwriting discount (not including original issue discount) shall not exceed one-half percent (0.50%) of the aggregate principal amount of the Bonds.
Section 5. The proposed form of Continuing Disclosure Agreement, by and between the City and U.S. Bank Trust Company, National Association, as trustee and dissemination agent, on file with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is each hereby authorized and directed to and in the name and on the behalf of the City, to execute and deliver a continuing disclosure Packet Pg. 258 Attachment: Resolution (9.5(b)--Consider Authorization of Bond Refunding 2015A) -3-
4131-3255-3572.2
agreement in substantially said form with said changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.
Section 6. The proposed form of Official Statement relating to the Bonds (the “Official Statement”), on file with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver an Official Statement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. The Underwriter is hereby directed to distribute copies of the Official Statement to all actual purchasers of the Bonds. Distribution by the Underwriter of a preliminary Official Statement relating to the Bonds is hereby approved and the Mayor or City Manager of the City (or other officer designated by the City Manager) is each hereby authorized and directed, to execute a certificate confirming that the preliminary Official Statement has been “deemed final” by the City for purposes of Securities and Exchange Commission Rule 15c2-12.
Section 7. The Mayor or City Manager of the City (or other officer designated by the City Manager) is each hereby authorized, upon a determination by such officer that the procurement of such policy is in the best interests of the City, to procure and maintain a policy of municipal bond insurance for the benefit of the registered owners of one or more maturities of the Bonds in such form and on such terms as such officer shall require or approve, such approval to be conclusively evidenced by the execution and delivery of the commitment for and on behalf of the City to the issuer of such municipal bond insurance policy or surety bond.
Section 8. The 2015 Installment Sale Payments to be prepaid shall be determined by the officer executing the Indenture to be in the best interest of the City. Such determination shall be conclusively evidenced by the execution and delivery of the Indenture.
Section 9. The City Clerk is hereby authorized and directed to attest the signature of the Mayor, City Manager or other officers of the City as may be required in connection with the issuance, sale and delivery of the Bonds and the execution and delivery of the Indenture, Purchase Contract and Continuing Disclosure Agreement in accordance with this Resolution.
Section 10. The officers and City Council members of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents and certificates which they deem necessary or advisable in order to consummate the execution and delivery of the documents mentioned herein including, without limitation, signature certificates, no-litigation certificates, tax certificates, investment instructions, redemption or defeasance notices, legal services agreements (with the approval of the City Attorney) with the firms identified in the recitals hereto and otherwise to effectuate the purposes of this Resolution and the transactions contemplated hereby.
Section 11. All actions heretofore taken by the officers and agents of the City with respect to the refinancing of the 2005 Electric System Project and the 2015 Electric System Project are hereby ratified, confirmed and approved.
Section 12. This Resolution shall take effect from and after its adoption and approval.
Packet Pg. 259 Attachment: Resolution (9.5(b)--Consider Authorization of Bond Refunding 2015A) -4-
4131-3255-3572.2
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 2
nd day of June 2026, by the following vote of the
members thereof:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MIKE LITTAU, Mayor
ATTEST: FORM APPROVAL:
____
SHARLENE TIPTON, City Clerk BENJAMIN L. STOCK, Interim City Attorney Packet Pg. 260 Attachment: Resolution (9.5(b)--Consider Authorization of Bond Refunding 2015A) 4131-3255-3572.2
EXHIBIT A
GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Bonds in compliance with Section 5852.1 of the California Government Code. Such good faith estimates have been provided to the City by PFM Financial Advisors LLC, as municipal advisor to the City (the “Municipal Advisor”).
Principal Amount. The Municipal Advisor has informed the City that, based on the City’s financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the Bonds to be sold is $22,115,000.00 (the “Estimated Principal Amount”).
True Interest Cost of the Bonds. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Bonds, is
2.91%.
Finance Charge of the Bonds. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the Bonds), is $410,575.00.
Amount of Proceeds to be Received. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the City for sale of the Bonds, less the finance charge of the Bonds, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the Bonds, is $23,865,809.30.
Total Payment Amount. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the City will make to pay debt service on the Bonds, plus the finance charge for the Bonds, as described above, not paid with the proceeds of the Bonds, calculated to the final maturity of the Bonds, is $27,505,353.47.
The foregoing estimates constitute good faith estimates only. The actual principal amount of the Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates, (b) the actual principal amount of Bonds sold being different from the Estimated Principal Amount, (c) the actual amortization of the Bonds being different than the amortization assumed for purposes of such estimates, (d) the actual market interest Packet Pg. 261 Attachment: Resolution (9.5(b)--Consider Authorization of Bond Refunding 2015A) 4131-3255-3572.2
rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the City’s financing plan, or a combination of such factors. The actual date of sale of the Bonds and the actual principal amount of Bonds sold will be determined by the City based on the need for project funds and other factors.
The actual interest rates borne by the Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the City. The City Council has approved the issuance of the Bonds with a maximum true interest cost of 6.00%.
Packet Pg. 262 Attachment: Resolution (9.5(b)--Consider Authorization of Bond Refunding 2015A)
CITY OF REDDING
REPORT TO REDDING JOINT POWERS
FINANCING AUTHORITY
Recommendation
Conduct a joint public hearing with the Redding City Council and, upon conclusion, adopt a resolution that authorizes the execution and delivery of a Trust Agreement, an Installment Sale Agreement, a Purchase Contract, and approves the form of the Official Statement, and authorizes the execution of documents and the taking of all necessary actions relating to the financing.
Background
City Council at its meeting on August 20, 2013, adopted a resolution authorizing pre-financing activity for the purchase of a new Redding Electric Utility headquarters facility at 3611 Avtech Parkway. The total approved budget was $11.4 million, including $500,000 of Public Benefits funding for energy efficiency upgrades. The building was placed in service in February 2015.
Included in this bond issue is $11 million to reimburse for the above expenditures.
Approximately $9 million has been spent to date. In addition, the current interest rate environment provides an opportunity to refinance the City’s outstanding Electric System Revenue Certificates of Participation, 2005 Series A at lower interest rates. The underwriter currently estimates that the refunding portion of the bond issue will result in approximately 12 percent present value savings. Actual savings will be based on interest rates the day of the bond sale. A resolution is attached that will provide authorization for the taking of all necessary actions to issue the Electric System Revenue Bonds, Series 2015 A.
The space for the Electric Department at the Corporation Yard on Viking Way and at the Power Plant is insufficient for the current staffing and operations. Previously, approximately $1.1 million was budgeted to expand the Corporation Yard. With the purchase of the facility at Avtech and the surrounding property, planning commenced to provide for the identified space needs. The identified solution entails moving staff from the Corporation Yard and the Power Plant to the currently unfinished portion of Avtech and into a new facility to be constructed immediately adjacent to the existing building. To move forward with this solution, the $1.1 MEETING DATE: November 3, 2015
ITEM NO. 2
[R-015-300-175]
FROM:
SUBJECT: 2--Joint Public Hearing to consider authorization of issuance of bonds to finance the new Redding Electric Utility headquarters facility and to refinance the 2005 Series A Certificates
***APPROVED BY***
Barry Tippin, Asst. City
Manager/REU Director
Packet Pg. 263 Attachment: Previous Staff Report - November 3, 2015, 2015 Series A Bonds (9.5(b)--Consider Authorization of Bond Refunding 2015A) Report to Redding Joint Powers Financing Authority October Re: 2--Joint Public Hearing re Issuance of bonds for REU Page 2 million targeted for the Corporation Yard will be re-directed to Avtech. This, combined with a portion of the $11 million of new bond funding will complete the needed funding for the project.
After completion of the new facility and minor remodeling of the Corporation Yard and the Power Plant, three trailers currently in use at the Power Plant will be removed from the site and the respective leases canceled. As was noted when Avtech was purchased and as mentioned in the current budget, the long term plan is to use Avtech as the Redding Electric Utility campus.
This proposal accomplishes part of that plan. Future contracts and bid awards will be presented to the City Council for approval as the project proceeds.
In addition, at a special meeting of the Redding Joint Powers Financing Authority (RJPFA) held on September 15, 2015, the RJPFA adopted a resolution setting the regular meeting schedule of the RJPFA. November 3, 2015, is one of those approved regular meeting dates.
Issue
Does the RJPFA wish to proceed with the issuance of bonds to finance the new Electric Utility headquarters facility and to refinance the 2005 Series A Certificates? Alternatives; Implications of Alternatives
The RJPFA has the following alternatives:
1. Adopt a resolution that approves the issuance of the Electric System Revenue Bonds, Series 2015 A in an amount not to exceed $45 million; authorizes the execution and delivery of the documents identified above; approves the form of the Official Statement; and authorizes the taking of all necessary actions to issue such bonds. The RJPFA will be able to take the actions necessary to prepare bonds for issuance.
2. Decline to adopt the resolution. The RJPFA will not be able to move forward with a bond issue at this time.
Fiscal Impact
The refinancing of the 2005 Series A Certificates will result in a savings of over $6 million during the life of the bonds and a present value savings of approximately 12 percent. The additional debt service for the financing of the purchase of the Redding Electric Utility headquarters facility at 3611 Avtech Parkway will result in an additional debt service cost of approximately $1.1 million per year. This is $300,000 less than what was included in the Biennial Budget for Fiscal Years Ending June 30, 2016 & 2017. This also results in a $300,000 annual savings to the debt service requirement shown in the five-year plan included with the Electric Utility’s approved budget.
Conclusion
It is the recommendation of staff that the RJPFA approve the attached resolution thus facilitating the preparation of the Electric System Revenue Bonds, Series 2015 A.
Packet Pg. 264 Attachment: Previous Staff Report - November 3, 2015, 2015 Series A Bonds (9.5(b)--Consider Authorization of Bond Refunding 2015A) Report
to Redding Joint Powers Financing Authority October
Re: 2--Joint Public Hearing re Issuance of bonds for REU Page 3 Attachments:
Resolution
Trust Agreement (available online)
Installment Sale Agreement (available online)
Purchase Contract (available online)
Preliminary Official Statement (available online)
Packet Pg. 265 Attachment: Previous Staff Report - November 3, 2015, 2015 Series A Bonds (9.5(b)--Consider Authorization of Bond Refunding 2015A) OHS Draft
Distributed 5/18/26
4147-8150-4612.4
INDENTURE
Dated as of July 1, 2026
by and between the 1
CITY OF REDDING
and
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION
as Trustee
Relating to the
CITY OF REDDING
ELECTRIC SYSTEM REFUNDING REVENUE BONDS,
SERIES 2026
Packet Pg. 266 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A)
TABLE OF CONTENTS
Page
i
ARTICLE I DEFINITIONS; EQUAL SECURITY................................................................ 2 SECTION 1.01. Definitions .......................................................................................... 2 SECTION 1.02. Equal Security................................................................................... 18 ARTICLE II AUTHORIZATION AND ISSUANCE OF 2026 BONDS .............................. 18 SECTION 2.01. Authorization and Purpose of 2026 Bonds....................................... 18 SECTION 2.02. Denominations of 2026 Bonds ......................................................... 19 SECTION 2.03. Date and Maturity Dates of and Interest Rates for 2026 Bonds....... 19 SECTION 2.04. Interest Payment Dates of 2026 Bonds............................................. 19 SECTION 2.05. Form of 2026 Bonds......................................................................... 20 SECTION 2.06. Payment of 2026 Bonds.................................................................... 20 SECTION 2.07. Execution of 2026 Bonds.................................................................. 20 SECTION 2.08. Transfer and Exchange of 2026 Bonds............................................. 21 SECTION 2.09. Mutilated, Destroyed, Stolen or Lost 2026 Bonds ........................... 21 SECTION 2.10. Temporary 2026 Bonds .................................................................... 22 SECTION 2.11. Use of Depository for 2026 Bonds................................................... 22 SECTION 2.12. Application of Proceeds of Sale of 2026 Bonds............................... 23 ARTICLE III REDEMPTION OF 2026 BONDS.................................................................... 24 SECTION 3.01. Redemption Prices and Terms of 2026 Bonds ................................. 24 SECTION 3.02. Selection of 2026 Bonds for Redemption......................................... 24 SECTION 3.03. Notice of Redemption of 2026 Bonds.............................................. 25 SECTION 3.04. Partial Redemption of 2026 Bonds................................................... 25 SECTION 3.05. Effect of Redemption of 2026 Bonds............................................... 25 ARTICLE IV REVENUES ...................................................................................................... 26 SECTION 4.01. Pledge of Net Revenues and Moneys in Electric Revenue Fund; Electric Revenue Fund ........................................................... 26 SECTION 4.02. Establishment and Maintenance of Accounts for Use of Money in the Debt Service Fund ...................................................... 27 SECTION 4.03. Deposit and Investments of Money in Accounts and Funds ............ 28 SECTION 4.04. Conditions for the Execution of Parity Obligations ......................... 29 Packet Pg. 267 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A)
TABLE OF CONTENTS
(continued)
Page
ii
SECTION 4.05. Subordinate Obligations ................................................................... 30 ARTICLE V COVENANTS OF THE CITY.......................................................................... 30 SECTION 5.01. Punctual Payment ............................................................................. 30 SECTION 5.02. Against Encumbrances ..................................................................... 30 SECTION 5.03. Against Sale or Other Disposition of the Electric System................ 31 SECTION 5.04. Tax Covenants and Matters; Rebate Fund........................................ 31 SECTION 5.05. Maintenance and Operation of the Electric System; Budgets.......... 32 SECTION 5.06. Compliance with Contracts............................................................... 32 SECTION 5.07. Continuing Disclosure ...................................................................... 32 SECTION 5.08. Insurance........................................................................................... 33 SECTION 5.09. Accounting Records and Financial Statements ................................ 33 SECTION 5.10. Protection of Security and Rights of Owners................................... 33 SECTION 5.11. Payment of Taxes and Compliance with Governmental Regulations....................................................................................... 33 SECTION 5.12. Amount of Rates and Charges.......................................................... 33 SECTION 5.13. Collection of Rates and Charges....................................................... 33 SECTION 5.14. Further Assurances ........................................................................... 34 ARTICLE VI THE TRUSTEE................................................................................................. 34 SECTION 6.01. The Trustee ....................................................................................... 34 SECTION 6.02. Liability of Trustee ........................................................................... 35 SECTION 6.03. Notice to Trustee............................................................................... 37 ARTICLE VII AMENDMENT OF OR SUPPLEMENT TO THE INDENTURE................... 37 SECTION 7.01. Procedure for Amendment of or Supplement to the Indenture......... 37 SECTION 7.02. Disqualified 2026 Bonds .................................................................. 38 SECTION 7.03. Endorsement or Replacement of 2026 Bonds After Amendment....................................................................................... 38 SECTION 7.04. Amendment by Mutual Consent....................................................... 39 ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES.................................................... 39 SECTION 8.01. Events of Default and Acceleration of Maturities............................ 39 Packet Pg. 268 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A)
TABLE OF CONTENTS
(continued)
Page
iii
SECTION 8.02. Application of Funds Upon Acceleration ......................................... 40 SECTION 8.03. Institution of Legal Proceedings by Trustee ..................................... 40 SECTION 8.04. Non-Waiver ...................................................................................... 41 SECTION 8.05. Actions by Trustee as Attorney-in-Fact............................................ 41 SECTION 8.06. Remedies Not Exclusive................................................................... 42 SECTION 8.07. Limitation on Owners’ Right to Sue................................................. 42 ARTICLE IX DEFEASANCE ................................................................................................. 42 SECTION 9.01. Discharge of 2026 Bonds.................................................................. 42 SECTION 9.02. Unclaimed Money ............................................................................ 43 ARTICLE X MISCELLANEOUS.......................................................................................... 44 SECTION 10.01. Liability of the City Limited to Net Revenues ................................. 44 SECTION 10.02. Benefits of the Indenture Limited to Certain Parties........................ 44 SECTION 10.03. Successor Is Deemed Included in All References to Predecessor ....................................................................................... 44 SECTION 10.04. Execution of Documents by Owners................................................ 45 SECTION 10.05. Waiver of Personal Liability............................................................. 45 SECTION 10.06. Acquisition of 2026 Bonds by the City ............................................ 45 SECTION 10.07. Content of Certificates and Reports.................................................. 45 SECTION 10.08. Notice to Owners and Securities Depositories ................................. 46 SECTION 10.09. Maintenance of Funds....................................................................... 46 SECTION 10.10. Business Days................................................................................... 46 SECTION 10.11. Article and Section Headings, Gender and References.................... 46 SECTION 10.12. Governing Law ................................................................................. 46 SECTION 10.13. Notices.............................................................................................. 46 SECTION 10.14. Partial Invalidity ............................................................................... 47 SECTION 10.15. Execution in Several Counterparts ................................................... 47 SECTION 10.16. Transaction by Electronic Means ..................................................... 47 Packet Pg. 269 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A)
INDENTURE
This Indenture (the “Indenture”), dated as of July 1, 2026, by and between the City of Redding, a municipal corporation duly organized and existing under and by virtue of the laws of the State of California (the “City”), and U.S. Bank Trust Company, National Association, a national banking association duly organized and existing under and by virtue of the laws of the United States of America and authorized to accept and execute trusts of the character herein set forth, as Trustee (the “Trustee”);
WITNESSETH:
WHEREAS, the City is authorized by law to issue refunding revenue bonds to refinance all or portions of any obligations theretofore entered into by it; and WHEREAS, the City has determined that it is in the best interests of the City and its residents and is necessary and proper that the City issue bonds to refinance [a portion of] the City’s obligation to make installment sale payments relating to the Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2015 Series A, issued under that certain Trust Agreement, dated as of December 1, 2015, by and between U.S. Bank Trust Company, National Association, as successor trustee to U.S. Bank National Association, and the Redding Joint Powers Financing Authority, all in the manner described herein; and WHEREAS, said bonds will be issued in one series: the City of Redding Electric System Refunding Revenue Bonds, Series 2026, in the aggregate principal amount of $[Series 2026 Par] (the “2026 Bonds”); and
WHEREAS, the City has determined that all things necessary to cause the 2026 Bonds, when duly executed by the City and authenticated and delivered by the Trustee as provided herein, to be legal and valid special obligations of the City enforceable in accordance with their terms, and to constitute the Indenture a valid agreement for the purposes and uses herein set forth in accordance with its terms, have been done and taken, and the execution and delivery hereof and the execution, authentication and delivery of the 2026 Bonds, subject to the terms hereof, have in all respects been duly authorized;
NOW THEREFORE, THE INDENTURE WITNESSETH, that in order to declare the conditions and terms upon and subject to which the 2026 Bonds are to be issued, and to secure the payment of the interest on and principal of and redemption premiums, if any, on all 2026 Bonds at any time executed, authenticated and delivered hereunder according to their tenor, and to secure the observance and performance of all the agreements, conditions, covenants and terms contained herein and therein, and in consideration of the premises and of the mutual agreements and covenants contained herein and of the purchase and acceptance of the 2026 Bonds by the respective registered owners thereof from time to time, and for other valuable consideration, the receipt whereof is hereby acknowledged, the City does hereby agree and covenant with the Trustee, for the benefit of the respective registered owners from time to time of the 2026 Bonds, as follows:
Packet Pg. 270 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 2 ARTICLE I
DEFINITIONS; EQUAL SECURITY
SECTION 1.01. Definitions. Unless the context otherwise requires, the terms defined in this section shall for all purposes hereof and of the 2026 Bonds and of any certificate, opinion, report, request or other document herein or therein mentioned have the meanings herein specified, the following definitions to be equally applicable to both the singular and plural forms of any of the terms defined herein:
Accountant’s Report
The term “Accountant’s Report” means a report signed by an Independent Certified Public Accountant.
Adjusted Annual Debt Service
The term “Adjusted Annual Debt Service” means, for any Fiscal Year or any designated twelve (12) month period in question, the Annual Debt Service for such Fiscal Year or twelve month period minus the sum of the amount of the Annual Debt Service with respect to Outstanding Parity Obligations to be paid during such Fiscal Year or twelve month period from the proceeds of Parity Obligations or interest earned thereon (other than interest deposited into the Electric Revenue Fund), all as set forth in a Certificate of the City.
Adjusted Annual Net Revenues
The term “Adjusted Annual Net Revenues” means, for any Fiscal Year or any designated twelve (12) month period in question, the Adjusted Annual Revenues during such Fiscal Year or twelve-month period less the Maintenance and Operation Costs during such Fiscal Year or twelve-month period.
Adjusted Annual Revenues
The term “Adjusted Annual Revenues” means, for any Fiscal Year or any designated twelve (12) month period in question, the Revenues during such Fiscal Year or twelvemonth period, less, for purposes of determining compliance with Section 5.12 and conditions for the execution of Parity Obligations, any Payment Agreement Receipts taken into account in calculating Annual Debt Service pursuant to paragraph (C) of the definition thereof, plus, for the purposes of determining compliance with Section 5.12 hereof only, the amount of Available Reserves on deposit, or which the City has authorized to be deposited, in the Electric Revenue Fund as of the first day of such Fiscal Year or twelve-month period.
Annual Debt Service
The term “Annual Debt Service” means, for any Fiscal Year or any designated twelve (12) month period in question, (i) with respect to the 2026 Bonds, the required payments scheduled to be made with respect to all Outstanding 2026 Bonds in such Fiscal Year or twelve (12) month period, or (ii) with respect to Parity Obligations, the required payments scheduled to Packet Pg. 271 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 3 be made with respect to all Outstanding Parity Obligations in such Fiscal Year or twelve (12) month period provided, that for the purposes of determining compliance with Section 5.12 and conditions for the execution of Parity Obligations:
(A) Generally. Except as otherwise provided by subparagraph (B) with respect to Variable Interest Rate Parity Obligations and by subparagraph (C) with respect to Parity Obligations as to which a Payment Agreement is in force, and by subparagraph (D) with respect to certain Parity Payment Agreements, interest on any Parity Obligation shall be calculated based on the actual amount of interest that is payable under that Parity Obligation; (B) Interest on Variable Interest Rate Parity Obligations. The amount of interest deemed to be payable on any Variable Interest Rate Parity Obligation shall be calculated on the assumption that the interest rate on that Parity Obligation would be equal to the Assumed RBIbased Rate; (C) Interest on Payments or Parity Obligations with respect to which a Payment Agreement is in force. The amount of interest deemed to be payable on any Parity Obligations with respect to which a Payment Agreement is in force shall, so long as the Qualified Counterparty thereto is not in default thereunder, be based on the net economic effect on the City expected to be produced by the terms of such Parity Obligation and such Payment Agreement, including but not limited to the effects that (i) such Parity Obligation would, but for such Payment Agreement, be treated as an obligation bearing interest at a Variable Interest Rate instead shall be treated as an obligation bearing interest at a fixed interest rate, and (ii) such Parity Obligation would, but for such Payment Agreement, be treated as an obligation bearing interest at a fixed interest rate instead shall be treated as an obligation bearing interest at a Variable Interest Rate; and accordingly, the amount of interest deemed to be payable on any Parity Obligation with respect to which a Payment Agreement is in force shall, so long as the Qualified Counterparty thereto is not in default thereunder, be an amount equal to the amount of interest that would be payable at the rate or rates stated in such Parity Obligation plus the Payment Agreement Payments minus the Payment Agreement Receipts, and for the purpose of calculating Payment Agreement Receipts and Payment Agreement Payments under such Payment Agreement, the following assumptions shall be made:
(1) Counterparty Obligated to Pay Actual Variable Interest Rate on Variable Interest Rate Parity Obligations. If the Payment Agreement obligates a Qualified Counterparty to make payments to the City based on the actual Variable Interest Rate on a Parity Obligation that would, but for the Payment Agreement, be treated as a Variable Interest Rate Parity Obligation and obligates the City to make payments to the Qualified Counterparty based on a fixed rate, payments by the City to the Qualified Counterparty shall be assumed to be made at the fixed rate specified by the Payment Agreement and payments by the Qualified Counterparty to the City shall be assumed to be made at the actual Variable Interest Rate on such Parity Obligation, without regard to the occurrence of any event that, under the provisions of the Payment Agreement, would permit the Qualified Counterparty to make payments on any basis other than the actual Variable Interest Rate on such Parity Obligation, and such Parity Obligation shall set forth a debt service schedule based on that assumption;
Packet Pg. 272 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 4 (2) Variable Interest Rate Parity Obligations and Payment Agreements Having the Same Variable Interest Rate Component. If both a Payment Agreement and the related Parity Obligation that would, but for the Payment Agreement, be treated as a Variable Interest Rate Parity Obligation include a variable interest rate payment component that is required to be calculated on the same basis (including, without limitation, on the basis of the same variable interest rate index), it shall be assumed that the variable interest rate payment component payable pursuant to the Payment Agreement is equal in amount to the variable interest rate component payable on such Parity Obligation; (3) Variable Interest Rate Parity Obligations and Payment Agreements Having Different Variable Interest Rate Components. If a Payment Agreement obligates either the City or the Qualified Counterparty to make payments of a variable interest rate component on a basis that is different (including, without limitation, on a different variable interest rate index) from the basis that is required to be used to calculate interest on the Parity Obligation that would, but for the Payment Agreement, be treated as a Variable Interest Rate Parity Obligation it shall be assumed:
(a) City Obligated to Make Payments Based on Variable Interest Rate Index. If payments by the City under the Payment Agreement are based on a variable interest rate index and payments by the Qualified Counterparty are based on a fixed interest rate, payments by the City to the Qualified Counterparty will be based upon an interest rate equal to the Assumed RBI-based Rate, and payments by the Qualified Counterparty to the City will be based on the fixed rate specified by the Payment Agreement; and
(b) City Obligated to Make Payments Based on Fixed Interest Rate. If payments by the City under the Payment Agreement are based on a fixed interest rate and payments by the Qualified Counterparty are based on a variable interest rate index, payments by the City to the Qualified Counterparty will be based on an interest rate equal to the rate that is one hundred and five percent (105%) of the fixed interest rate specified by the Payment Agreement to be paid by the City, and payments by the Qualified Counterparty to the City will be based on a rate equal to the Assumed RBI-based Rate as the variable interest rate deemed to apply to the Variable Interest Rate Parity Obligation.
(4) Certain Payment Agreements May be Disregarded.
Notwithstanding the provisions of subparagraphs (C)(1), (2) and (3) of this definition, the City shall not be required to (but may at its option) take into account as set forth in subparagraph (C) of this definition (for the purpose of determining Annual Debt Service) the effects of any Payment Agreement that has a remaining term of ten (10) years or less; (D) Debt Service on Parity Payment Agreements. No interest shall be taken into account with respect to a Parity Payment Agreement for any period during which Payment Agreement Payments on that Parity Payment Agreement are taken into account in determining Annual Debt Service on a related Parity Obligation under subparagraph (C) of this definition; provided, that for any period during which Payment Agreement Payments are not taken into Packet Pg. 273 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 5 account in calculating Annual Debt Service on any Parity Obligation because the Parity Payment Agreement is not then related to any other Parity Obligation, interest on that Parity Payment Agreement shall be taken into account by assuming:
(1) City Obligated to Make Payments Based on Fixed Interest Rate. If the City is obligated to make Payment Agreement Payments based on a fixed interest rate and the Qualified Counterparty is obligated to make payments based on a variable interest rate index, payments by the City will be based on the specified fixed rate, and payments by the Qualified Counterparty will be based on a rate equal to the average rate determined by the variable interest rate index specified by the Payment Agreement during the calendar quarter preceding the calendar quarter in which the calculation is made; and (2) City Obligated to Make Payments Based on Variable Interest Rate Index. If the City is obligated to make Payment Agreement Payments based on a variable interest rate index and the Qualified Counterparty is obligated to make payments based on a fixed interest rate, payments by the City will be based on an interest rate equal to the average rate determined by the variable interest rate index specified by the Payment Agreement during the calendar quarter preceding the calendar quarter in which the calculation is made, and the Qualified Counterparty will make payments based on the fixed rate specified by the Parity Payment Agreement; and
(3) Certain Payment Agreements May be Disregarded.
Notwithstanding the provisions of subparagraphs (D)(1) and (2) of this definition, the City shall not be required to (but may at its option) take into account (for the purpose of determining Annual Debt Service) the effects of any Payment Agreement that has a remaining term of ten (10) years or less;
(E) Balloon Parity Obligations. For purposes of calculating Annual Debt Service on any Balloon Parity Obligations, it shall be assumed that the principal of those Balloon Parity Obligations, together with interest thereon at a rate equal to the Assumed RBI-based Rate, will be amortized in equal annual installments over a term of thirty (30) years from the date of issuance.
Assumed RBI-based Rate
The term “Assumed RBI-based Rate” means, as of any date of calculation, an assumed interest rate equal to ninety percent (90%) of the average RBI during the twelve (12) calendar months immediately preceding the month in which the calculation is made.
Authority
The term “Authority” means the Redding Joint Powers Financing Authority.
Packet Pg. 274 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 6 Authorized Representative
The term “Authorized Representative” means, with respect to the City, the Mayor, City Manager or Director of Finance of the City, and any other person who from time to time may be so designated by a Certificate of the City furnished to the Trustee. Such Certificate shall contain the specimen signature of such person, shall be signed on behalf of the City by an Authorized Representative and may designate an alternate or alternates.
Available Reserves
The term “Available Reserves” means, as of any date of calculation, the amount of unrestricted funds in the Electric Revenue Fund designated as “Available Reserves” by the City and then available to pay Maintenance and Operation Costs and/or Annual Debt Service which may include transfers to the Electric Revenue Fund from any fund which is legally available for deposit in the Electric Revenue Fund.
Balloon Parity Obligation
The term “Balloon Parity Obligation” means any Parity Obligation described as such in such Parity Obligation.
2017 Bonds
The term “2017 Bonds” means $55,785,000 aggregate principal amount of the City of Redding Electric System Refunding Revenue Bonds, Series 2017, authorized, executed, issued and delivered by the City under and pursuant to the Law and under and pursuant to an indenture, dated as of April 1, 2017, by and between the City and U.S. Bank Trust Company, National Association as trustee and that are secured thereby.
2018 Bonds
The term “2018 Bonds” means $39,510,000 aggregate principal amount of the City of Redding Electric System Refunding Revenue Bonds, Series 2018, authorized, executed, issued and delivered by the City under and pursuant to an indenture dated as of March 1, 2018, by and between the City and U.S. Bank Trust Company, National Association as trustee and that are secured thereby.
2026 Bonds
The term “2026 Bonds” means $[Series 2026 Par] aggregate principal amount of the City of Redding Electric System Refunding Revenue Bonds, Series 2026, authorized, executed, issued and delivered by the City under and pursuant to the Law and under and pursuant hereto and that are secured hereby.
Packet Pg. 275 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 7 Business Day
The term “Business Day” means a day on which the Trustee is open for business at the Principal Corporate Trust Office of the Trustee.
Certificate of the City
The term “Certificate of the City” means an instrument in writing signed by an Authorized Representative.
City
The term “City” means the City of Redding, a municipal corporation duly organized and existing under and by virtue of the laws and Constitution of the State of California.
City Council
The term “City Council” means the City Council of the City.
Code
The term “Code” means the Internal Revenue Code of 1986 and all then applicable regulations of the United States Department of the Treasury issued thereunder, and in this regard reference to any particular section of the Code shall include reference to all successors to such section of the Code.
Costs of Issuance
The term “Costs of Issuance” means all costs and expenses directly or indirectly payable by or reimbursable to the City related to the authorization, sale, execution and initial delivery of the 2026 Bonds, including, but not limited to, costs of preparation and reproduction of documents, filing and recording fees, initial fees and charges of the Trustee (including fees and expenses of their counsel), rating agency fees, verification agent fees, legal fees and charges and fees and charges of other consultants and professionals, together with all fees and charges for preparation, execution and safekeeping of the 2026 Bonds, and any other cost, charge, fee or expense in connection with the authorization, sale, execution and initial delivery of the 2026 Bonds.
Costs of Issuance Fund
The term “Costs of Issuance Fund” means the City of Redding 2026 Electric System Refunding Revenue Bonds Costs of Issuance Fund established pursuant to Section 2.12(b).
Debt Service Fund
The term “Debt Service Fund” means the City of Redding 2026 Electric System Refunding Revenue Bonds Debt Service Fund established pursuant to Section 4.01.
Packet Pg. 276 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 8 Defeasance Securities
The term “Defeasance Securities” means the following:
(1) non-callable direct obligations of the United States of America (“Treasuries”),
(2) evidences of ownership of proportionate interests in future interest and principal payments on Treasuries held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor and the underlying Treasuries are not available to any person claiming through the custodian or to whom the custodian may be obligated, (3) pre-refunded municipal obligations rated “AAA” and “Aaa” by S&P and Moody’s, respectively, or
(4) securities eligible for “AAA” defeasance under then existing criteria of S&P;
or any combination of the above.
Delivery Date
The term “Delivery Date” means [Closing Date], 2026.
Electric Revenue Fund
The term “Electric Revenue Fund” means the City of Redding Electric Revenue Fund established by the City, which fund is to be maintained and applied by the City in accordance with Section 4.01 hereof.
Electric Service
The term “Electric Service” means the electricity furnished, made available or sold by the Electric System.
Electric System
The term “Electric System” means the electric utility system of the City, comprising all electric generation, transmission and distribution facilities and all general plant facilities related thereto now owned by the City and all other properties, structures or works for the generation, transmission and distribution of electricity hereafter acquired by the City and determined by the City to be a part of the Electric System, including all contractual rights for electricity and capacity; together with all additions, betterments, extensions or improvements to such facilities, properties, structures or works or any part thereof hereafter acquired.
Packet Pg. 277 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 9 Event of Default
The term “Event of Default” means an event described as such in Section 8.01.
Fiscal Year
The term “Fiscal Year” means the period beginning on July 1 of each year and ending on the next succeeding June 30, or any other annual accounting period hereafter selected and designated by the City Council as the Fiscal Year of the City.
Fitch
The term “Fitch” means Fitch Ratings, Inc., a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, and its successors or assigns, except that if such corporation shall be dissolved or liquidated or shall no longer perform the services of a municipal securities rating agency, then “Fitch” shall be deemed to refer to any other nationally recognized municipal securities rating agency rating Parity Obligations pursuant to a Written Order of the City.
Generally Accepted Accounting Principles
The term “Generally Accepted Accounting Principles” means the uniform accounting and reporting procedures set forth in publications of the American Institute of Certified Public Accountants or its successor and the Governmental Accounting Standards Board or its successor, or by any other generally accepted authority on such procedures, and includes, as applicable, the standards set forth by the Financial Accounting Standards Board or its successor.
Indenture
The term “Indenture” means this Indenture and all Supplemental Indentures.
Independent Certified Public Accountant
The term “Independent Certified Public Accountant” means any certified public accountant or firm of such accountants duly licensed and entitled to practice and practicing as such under the laws of the State, appointed and paid by the City, and who, or each of whom:
(A) is in fact independent according to the Statement of Auditing Standards No. 1 and not under the domination of the City;
(B) does not have a substantial financial interest, direct or indirect, in the operations of the City; and
(C) is not connected with the City as a councilmember, officer or employee of the City, but who may be regularly retained to audit the accounting records of and make reports thereon to the City.
Packet Pg. 278 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 10 Installment Payments
The term “Installment Payments” means, collectively, the 2015 Installment Sale Payments and the 2025A Installment Sale Payments.
2015 Installment Sale Agreement
The term “2015 Installment Sale Agreement” means that certain 2015 Installment Sale Agreement, dated as of December 1, 2015, by and between the City and the Authority. 2025A Installment Sale Agreement
The term “2025A Installment Sale Agreement” means that certain 2025A Installment Sale Agreement, dated as of April 1, 2025, by and between the City and the Authority. 2015 Installment Sale Payments
The term “2015 Installment Sale Payments” means the installment sale payments payable by the City under and pursuant to the 2015 Installment Sale Agreement. 2025A Installment Sale Payments
The term “2025A Installment Sale Payments” means the installment sale payments payable by the City under and pursuant to the 2025A Installment Sale Agreement.
Insurance Consultant
“Insurance Consultant” means
(a) the Risk Manager for the City or
(b) any insurance consultant or firm of insurance consultants generally recognized to be well qualified in insurance consulting matters relating to electric utility and other municipal systems, appointed and paid by the City, and who or each of whom -- (1) is in fact independent and not under the domination of the City; (2) does not have a substantial financial interest, direct or indirect, in the operations of the City; and
(3) is not connected with the City as a councilmember, officer, or employee of the City, but may be regularly retained to make reports to the City.
Interest Payment Date
The term “Interest Payment Date” means June 1 and December 1 of each year, commencing December 1, 2026.
Packet Pg. 279 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 11 Law
The term “Law” means Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
Maintenance and Operation Costs
The term “Maintenance and Operation Costs” means the costs paid or incurred by the City for maintaining and operating the Electric System including, but not limited to, (a) all costs of electric energy and power generated or purchased by the City for resale, costs of transmission, fuel supply and water supply in connection with the foregoing, (b) all expenses of management and repair and other expenses necessary to maintain and preserve the Electric System in good repair and working order, (c) all administrative costs of the City that are charged directly or apportioned to the operation of the Electric System, such as salaries and wages of employees, overhead, taxes (if any) and insurance premiums, (d) all other reasonable and necessary costs of the City or charges required to be paid by it to comply with the terms hereof or of any resolution authorizing the execution of this Indenture or of any resolution authorizing the issuance or incurrence of any Parity Obligations or of such Parity Obligations, such as compensation, reimbursement and indemnification of the trustee, remarketing agent or surety costs for the 2026 Bonds or Parity Obligations, letter of credit fees relating to Parity Obligations, fees and expenses of Independent Certified Public Accountants, (e) all amounts required to be paid by the City under contracts with a joint powers agency for the purchase of capacity, energy, transmission capability or any other commodity or service in connection with the foregoing, which contract requires payments to be made by the City thereunder to be treated as maintenance and operation costs of the Electric System, (f) all deposits to be made to the Rebate Fund pursuant to the Tax Certificate and all deposits in comparable accounts established with respect to Parity Obligations required to be deposited pursuant to the proceedings authorizing such Parity Obligations, and (g) any other cost or expense which, in accordance with Generally Accepted Accounting Principles, is to be treated as a cost of operating or maintaining the Electric System; but excluding in all cases depreciation, replacement and obsolescence charges or reserves therefor and amortization of intangibles.
Maximum Annual Debt Service
The term “Maximum Annual Debt Service” means with respect to any period of time, the greatest Annual Debt Service payable during such period of time on the Outstanding 2026 Bonds and any Outstanding Parity Obligations or Parity Obligations then being issued.
Moody’s
The term “Moody’s” means Moody’s Investors Service, Inc., a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, and its successors or assigns, except that if such corporation shall be dissolved or liquidated or shall no longer perform the services of a municipal securities rating agency, then “Moody’s” shall be deemed to refer to any other nationally recognized municipal securities rating agency rating Parity Obligations pursuant to a Written Order of the City.
Packet Pg. 280 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 12 Net Revenues
The term “Net Revenues” means, for any period of time in question, the Revenues during such period less the Maintenance and Operation Costs during such period.
Opinion of Counsel
The term “Opinion of Counsel” means a written opinion of counsel of national representation generally recognized to be well qualified in the field of law relating to municipal bonds, retained by the City.
Outstanding
The term “Outstanding,” when used as of any particular time with reference to 2026 Bonds, means (subject to the provisions of Section 7.02) all 2026 Bonds executed, authenticated and delivered hereunder except --
(1) 2026 Bonds theretofore cancelled by the Trustee or surrendered to the Trustee for cancellation;
(2) 2026 Bonds paid or deemed to have been paid pursuant to Section 9.01; and (3) 2026 Bonds in lieu of or in substitution for which other bonds shall have been executed by the City and authenticated and delivered by the Trustee pursuant to Section 2.09.
The term “Outstanding,” when used as of any particular time with reference to Parity Obligations means all Parity Obligations which have not been paid or otherwise satisfied as provided in the proceedings and instruments pursuant to which such Parity Obligations have been issued or incurred.
Owner
The term “Owner” means the registered owner of any Outstanding 2026 Bond, as shown in the registration books maintained by the Trustee pursuant to Section 2.08.
Parity Obligation
The term “Parity Obligation” means the 2017 Bonds, the 2018 Bonds, and the Installment Payments and all obligations hereafter issued or incurred by the City the payment of which constitutes a charge and lien on the Net Revenues and moneys in the Electric Revenue Fund equal to and on a parity with the charge and lien upon the Net Revenues and moneys in the Electric Revenue Fund for the payment of the 2026 Bonds.
Parity Payment Agreement
The term “Parity Payment Agreement” means a Payment Agreement which is a Parity Obligation.
Packet Pg. 281 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 13 Payment Agreement
The term “Payment Agreement” means a written agreement for the purpose of managing or reducing the City’s exposure to fluctuations in interest rates or for any other interest rate, investment, cash flow, asset or liability managing purposes, entered into either on a current or forward basis by the City and a Qualified Counterparty in connection with, or incidental to, the entering into of any Parity Obligation, that provides for an exchange of payments based on interest rates, ceilings or floors on such payments, options on such payments, or any combination thereof or any similar device.
Payment Agreement Payments
The term “Payment Agreement Payments” means the amounts required to be paid periodically by the City to the Qualified Counterparty pursuant to a Payment Agreement.
Payment Agreement Receipts
The term “Payment Agreement Receipts” means the amounts required to be paid periodically by the Qualified Counterparty to the City pursuant to a Payment Agreement.
Permitted Investments
The term “Permitted Investments” means any of the following obligations to the extent then permitted by law:
(1) Direct obligations of the United States (including obligations issued or held in book-entry form on the books of the Department of the Treasury, and CATS and TIGRS) or obligations the principal of and interest on which are unconditionally guaranteed by the United States.
(2) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States (stripped securities are only permitted if they have been stripped by the agency itself):
(a) United States Export-Import Bank
Direct obligations or fully guaranteed certificates of beneficial ownership (b) Farmers Home Administration
Certificates of beneficial ownership
(c) Federal Financing Bank
(d) Federal Housing Administration Debentures
(e) General Services Administration
Participation certificates
Packet Pg. 282 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 14 (f) Government National Mortgage Association (“GNMA”) GNMA – guaranteed mortgage-backed bonds
GNMA – guaranteed pass-through obligations
(g) United States Maritime Administration
Guaranteed Title XI financing
(h) United States Department of Housing and Urban Development Project Notes
Local Authority Bonds
New Communities Debentures - United States government guaranteed debentures
United States Public Housing Notes and Bonds - United States government guaranteed public housing notes and bonds
(3) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non-full faith and credit United States government agencies (stripped securities are only permitted if they have been stripped by the agency itself):
(a) Federal Home Loan Bank System
Senior debt obligations
(b) Federal Home Loan Mortgage Corporation (“FHLMC”)
Participation Certificates
Senior debt obligations
(c) Federal National Mortgage Association (“FNMA”)
Mortgage-backed securities and senior debt obligations
(d) Resolution Funding Corporation Obligations
(4) Money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of “AAAm-G,” or “AAA-m,” including funds for which the Trustee or any of its affiliates (including any holding company, subsidiaries, or other affiliates) provides investment advisory or other management services. (5) Certificates of deposit secured at all times by collateral described in (1) and/or (2) above. Such certificates must be issued by commercial banks (including affiliates of the Trustee), savings and loan associations or mutual savings banks. The collateral must be held by a third party and the Trustee must have a perfected first security interest in the collateral.
Packet Pg. 283 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 15 (6) Certificates of deposit, savings accounts, deposit accounts or money market deposits (including those of the Trustee and its affiliates) which are fully insured by Federal Deposit Insurance Corporation, including Bank Insurance Fund and Savings Association Insurance Fund.
(7) Investment Agreements, including Guaranteed Investment Contracts, Forward Purchase Agreements and Reserve Fund Put Agreements. (8) Commercial paper rated, at the time of purchase, “P-1” by Moody’s and “A1+” by S&P and which matures not more than 270 calendar days after the date of purchase. (9) Bonds or notes issued by any state or municipality which are rated by Moody’s and S&P in one of the two highest rating categories assigned by such agencies. (10) Any state administered pool investment fund in which the City is statutorily permitted or required to invest.
Principal Corporate Trust Office
The term “Principal Corporate Trust Office” means the corporate trust office of the Trustee located in [____], California (except for payments, exchanges, transfers and surrenders of the 2026 Bonds, in which case “Principal Corporate Trust Office” means the corporate trust office of the Trustee in St. Paul, Minnesota) or such other office or offices as the Trustee shall designate from time to time.
Prior Bonds
The term “Prior Bonds” means Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2015 Series A, issued under that certain Trust Agreement, dated as of December 1, 2015, by and between U.S. Bank Trust Company, National Association (as successor trustee to U.S. Bank National Association) and the Redding Joint Powers Financing Authority.
Prior Installment Payments
The term “Prior Installment Payments” means the installment payments and interest thereon payable by the City under and pursuant to the 2015 Installment Sale Agreement.
Qualified Counterparty
The term “Qualified Counterparty” means a party (other than the City) who is the other party to a Payment Agreement and (1) (a) whose senior debt obligations are rated in one of the three (3) highest rating categories of each of the Rating Agencies then rating the 2026 Bonds or any Parity Obligations (without regard to any gradations within a rating category), or (b) whose obligations under the Payment Agreement are guaranteed for the entire term of the Payment Agreement by a bond insurer or other institution which has been or whose debt service obligations have been assigned a credit rating in one of the three highest rating categories of each of the Rating Agencies then rating the 2026 Bonds or any Parity Obligations (without regard to any gradations Packet Pg. 284 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 16 within a rating category), and (2) who is otherwise qualified to act as the other party to a Payment Agreement with the City under any applicable laws.
RBI
The term “RBI” means the Bond Buyer Revenue Bond Index or comparable index of long-term municipal obligations chosen by the City, or, if no comparable index can be obtained, eighty percent (80%) of the interest rate on actively traded thirty (30) year United States Treasury obligations.
Rebate Fund
The term “Rebate Fund” means the City of Redding 2026 Electric System Refunding Revenue Bonds Rebate Fund established pursuant to Section 5.04.
Rebate Instructions
The term “Rebate Instructions” means the applicable Rebate Instructions defined in the Tax Certificate.
Rebate Requirement
The term “Rebate Requirement” means the applicable Rebate Requirement defined in the Tax Certificate.
Record Date
The term “Record Date” means, with respect to any Interest Payment Date, the May 15 or November 15, as the case may be, preceding such Interest Payment Date, whether or not such day is a Business Day.
Refunding Fund
The term “Refunding Fund” means the City of Redding 2026 Electric System Refunding Revenue Bonds Refunding Fund established pursuant to Section 2.12(a).
Revenues
The term “Revenues” means all gross income and revenue received or receivable by the City from the ownership or operation of the Electric System, including all rates and charges received by the City for the Electric Service and the other services and facilities of the Electric System, all proceeds of insurance covering business interruption loss relating to the Electric System and all other income and revenue howsoever derived by the City from the ownership or operation of the Electric System or otherwise arising from the Electric System, including all Payment Agreement Receipts, and all income from the deposit or investment of any money in the Electric Revenue Fund, but excluding (i) proceeds of taxes and (ii) refundable deposits made to establish credit and advances or contributions in aid of construction and line extension fees.
Packet Pg. 285 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 17 S&P
The term “S&P” means S&P Global Ratings, a Standard & Poor’s Financial Services LLC business, a corporation duly organized and existing under and by virtue of the laws of the State of New York, and its successors or assigns, except that if such entity shall be dissolved or liquidated or shall no longer perform the services of a municipal securities rating agency, then “S&P” shall be deemed to refer to any other nationally recognized municipal securities rating agency rating Parity Obligations pursuant to a Written Order of the City.
Subordinate Obligations
The term “Subordinate Obligations” means obligations of the City authorized and executed by the City under applicable law, the payments under and pursuant to which are payable from Net Revenues, subject and subordinate to the payment of the 2026 Bonds hereunder and to the payment of Parity Obligations. Such obligations may be payable from any fund established for the purpose of paying debt service on such Subordinate Obligations.
Supplemental Indenture
The term “Supplemental Indenture” means any indenture then in full force and effect which has been executed by the City and the Trustee, amendatory hereof or supplemental hereto; but only if and to the extent that such Supplemental Indenture is specifically authorized hereunder.
Tax Certificate
The term “Tax Certificate” means the Tax Certificate and Agreement executed and delivered by the City on the Delivery Date, including any and all exhibits attached thereto.
Trustee
The term “Trustee” means U.S. Bank Trust Company, National Association, a national banking association duly organized and existing under and by virtue of the laws of the United States, and authorized to accept and execute trusts of the character herein set forth, at its Principal Corporate Trust Office, acting in its capacity as trustee under and pursuant hereto, and its successors or assigns, or any other bank or trust company or national banking association having its designated corporate trust office in Los Angeles or San Francisco, California, which may at any time be substituted in its place as provided in Section 6.01.
Variable Interest Rate
The term “Variable Interest Rate” means any variable interest rate or rates to be paid under any Parity Obligations, the method of computing which variable interest rate shall be as specified in the applicable Parity Obligation, which Parity Obligation shall also specify either (i) the payment period or periods or time or manner of determining such period or periods or time for which each value of such variable interest rate shall remain in effect, and (ii) the time or times based upon which any change in such variable interest rate shall become effective, and which Packet Pg. 286 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 18 variable interest rate may, without limitation, be based on the interest rate on certain bonds or may be based on interest rate, currency, commodity or other indices.
Variable Interest Rate Parity Obligations
The term “Variable Interest Rate Parity Obligations” means, for any period of time, all in accordance with the definition of “Annual Debt Service” set forth in this Section 1.01, any Parity Obligations that bear a Variable Interest Rate during such period, except that (i) Parity Obligations shall not be treated as Variable Interest Rate Parity Obligations if the net economic effect of interest rates on particular payments of the Parity Obligations and interest rates on other payments of the same Parity Obligations, as set forth in such Parity Obligations, or the net economic effect of a Payment Agreement with respect to particular Parity Obligations, in either case, is to produce obligations that bear interest at a fixed interest rate, and (ii) Installment Payments and Parity Obligations with respect to which a Payment Agreement is in force shall be treated as Variable Interest Rate Parity Obligations if the net economic effect of the Payment Agreement is to produce obligations that bear interest at a Variable Interest Rate.
Written Order of the City
The term “Written Order of the City” means an instrument in writing signed by an Authorized Representative.
SECTION 1.02. Equal Security. In consideration of the acceptance of the 2026 Bonds by the Owners thereof, the Indenture shall be deemed to be and shall constitute a contract between the City and the Trustee for the benefit of the Owners from time to time of all the 2026 Bonds executed, authenticated and delivered hereunder and then Outstanding to secure the full and final payment of the interest on and the principal of and the redemption premiums, if any, on all such 2026 Bonds, subject to the agreements, conditions, covenants and terms contained herein; and all agreements, conditions, covenants and terms contained herein required to be observed or performed on behalf of the City shall be for the equal and proportionate benefit, security and protection of the Owners from time to time of all 2026 Bonds without preference, priority or distinction as to security or otherwise of any 2026 Bonds over any other 2026 Bonds.
ARTICLE II
AUTHORIZATION AND ISSUANCE OF 2026 BONDS
SECTION 2.01. Authorization and Purpose of 2026 Bonds.
(a) The City Council has reviewed all proceedings heretofore taken relative to the authorization of the 2026 Bonds and has found, as a result of such review, and hereby finds and determines that all acts, conditions and things required by the Law to exist, happen and be performed precedent to the issuance of the 2026 Bonds do exist, have happened and have been performed in due time, form and manner as required by the Law, and that the City is now authorized, pursuant to each and every requirement of the Law and hereof, to issue the 2026 Bonds under the Law in the form and manner provided herein. The 2026 Bonds shall be entitled to the benefit, protection and security of the provisions hereof. The 2026 Bonds shall be issued in the Packet Pg. 287 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 19 aggregate principal amount of [______________] ($[Series 2026 Par]), shall be designated the “City of Redding Electric System Refunding Revenue Bonds, Series 2026” and shall be issued by the City under and pursuant to the Law and under and pursuant hereto. The 2026 Bonds may contain or have endorsed thereon such descriptive provisions, specifications and words not inconsistent with the provisions hereof as may be desirable or necessary to comply with custom or the rules of any securities exchange or commission or brokerage board or otherwise as may be determined by the City prior to the delivery thereof.
(b) The purpose for which the 2026 Bonds are to be issued is to provide funds to the City which will be sufficient to provide for the payment and prepayment of [a portion of] the Prior Installment Payments relating to the Prior Bonds and to pay all Costs of Issuance. (c) From and after the issuance of the 2026 Bonds the findings and determinations of the City Council respecting the 2026 Bonds shall be conclusive evidence of the existence of the facts so found and determined in any action or proceeding in any court in which the validity of such 2026 Bonds is at issue, and no bona fide purchaser of any of the 2026 Bonds shall be required to see to the existence of any fact or to the performance of any condition or to the taking of any proceeding required prior to such issuance or to the application of the purchase price paid for the 2026 Bonds. The validity of the issuance of the 2026 Bonds shall not be dependent on or affected in any way by any proceedings taken by the City for the payment and prepayment of any of the Prior Installment Payments relating to the Prior Bonds, and the recital contained in the 2026 Bonds that the 2026 Bonds are issued under and pursuant to the Law and under and pursuant hereto shall be conclusive evidence of their validity and of the regularity of their issuance, and all 2026 Bonds shall be incontestable from and after their issuance. The 2026 Bonds shall be deemed to be issued, within the meaning hereof, whenever the definitive 2026 Bonds (or any temporary 2026 Bonds exchangeable therefor) have been delivered to the purchaser thereof and the purchase price thereof received.
SECTION 2.02. Denominations of 2026 Bonds. The 2026 Bonds shall be issued as fully registered bonds in denominations of five thousand dollars ($5,000) or any integral multiple of five thousand dollars ($5,000) (not exceeding the principal amount of 2026 Bonds maturing at any one time).
SECTION 2.03. Date and Maturity Dates of and Interest Rates for 2026 Bonds. The 2026 Bonds shall be dated their date of delivery, and shall mature on the dates and in the principal amounts and shall bear interest at the rates per annum as set forth in the following schedule:
Maturity Date
(June 1)
Principal
Amount Interest Rate
SECTION 2.04. Interest Payment Dates of 2026 Bonds. The interest on the 2026 Bonds shall be computed on the basis of a 360-day year of twelve (12) 30-day calendar months, and shall be payable on [December 1, 2026], and semiannually thereafter on June 1 and Packet Pg. 288 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 20 December 1 in each year. The 2026 Bonds shall bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless they are authenticated on a day during the period from the day prior to a Record Date for an Interest Payment Date to such Interest Payment Date, both dates inclusive, in which event they shall bear interest from such Interest Payment Date, or unless they are authenticated on a day on or before the Record Date for the first Interest Payment Date, in which event they shall bear interest from the Delivery Date; provided, that if at the time of authentication of any 2026 Bond interest is then in default on the Outstanding 2026 Bonds, such 2026 Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment on the Outstanding 2026 Bonds.
SECTION 2.05. Form of 2026 Bonds. The 2026 Bonds and the authentication and registration endorsement and assignment to appear thereon shall be substantially in the forms attached hereto as Exhibit A and by this reference herein incorporated.
SECTION 2.06. Payment of 2026 Bonds. The interest on and principal of and redemption premiums, if any, on the 2026 Bonds shall be payable in lawful money of the United States of America to the registered owners of such 2026 Bonds, and the City and the Trustee may deem and treat the registered owner of any 2026 Bond as the absolute owner of such 2026 Bond for all purposes hereof, whether such 2026 Bond shall be overdue or not, and neither the City nor the Trustee shall be affected by any notice or knowledge to the contrary. Payment of interest on the 2026 Bonds due on or before the maturity or prior redemption thereof shall be made only to the person whose name appears in the registration books required to be kept by the Trustee pursuant to Section 2.08 as the registered owner thereof at the close of business as of the Record Date next preceding each Interest Payment Date, such interest to be paid by check mailed by first class mail on each Interest Payment Date to such registered owner at his or her address as it appears on such books, except that in the case of an Owner of one million dollars ($1,000,000) or more in aggregate principal amount of 2026 Bonds then Outstanding, payment shall be made at such Owner’s option by wire transfer on each Interest Payment Date of immediately available funds to an account in a bank or trust company or savings bank that is a member of the Federal Reserve System and that is located in the United States of America according to written instructions given by such Owner to the Trustee by the applicable Record Date. Payment of the principal of and redemption premiums, if any, on the 2026 Bonds shall be made only to the person whose name appears in the registration books required to be kept by the Trustee pursuant to Section 2.08 as the registered owner thereof, such principal and redemption premiums, if any, to be paid upon surrender of the 2026 Bonds at the Principal Corporate Trust Office of the Trustee at maturity or upon prior redemption. All such payments of interest on and principal of and redemption premiums, if any, on the 2026 Bonds shall be valid and effectual to satisfy and discharge the liability on such 2026 Bonds to the extent of the sum or sums so paid.
SECTION 2.07. Execution of 2026 Bonds. The 2026 Bonds shall be signed on behalf of the City by the manual or facsimile signature of an Authorized Representative and countersigned by the manual or facsimile signature of the City Clerk, whereupon they shall be delivered to the Trustee for authentication and delivery by the Trustee to the purchaser thereof upon receipt of a Written Order of the City; provided, that in case any officer of the City who shall have signed any of the 2026 Bonds shall cease to be such officer before the 2026 Bonds so signed shall have been delivered to the purchaser thereof by the Trustee, such 2026 Bonds may Packet Pg. 289 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 21 nevertheless be delivered by the Trustee, and upon such delivery shall be as binding upon the City as though such officer who signed the same had continued to be such officer until such delivery; and provided further, that any 2026 Bond may be signed on behalf of the City by any person who on the actual date of the execution of such 2026 Bond shall be the proper officer of the City, although on the nominal date of such 2026 Bond such person shall not have been such officer of the City. Only those 2026 Bonds that bear thereon a certificate of authentication manually executed by the Trustee shall be entitled to any benefit, protection or security hereunder or be valid or obligatory for any purpose, and such certificate of authentication of the Trustee shall be conclusive evidence that the 2026 Bonds so authenticated have been duly authorized, sold, executed and delivered hereunder and are entitled to the benefits hereof.
SECTION 2.08. Transfer and Exchange of 2026 Bonds. The Trustee shall keep at its Principal Corporate Trust Office sufficient books for the transfer and exchange of the 2026 Bonds, which books shall at all times during normal business hours and upon reasonable prior notice be open to inspection by the City. Any 2026 Bond may, in accordance with its terms, be transferred or exchanged on such books by the person in whose name it is registered, in person or by his or her duly authorized attorney, upon payment by the Owner requesting such transfer or exchange of any tax or other governmental charge required to be paid with respect to such transfer or exchange and upon surrender of such 2026 Bond for cancellation accompanied by delivery of a duly executed written instrument of transfer or exchange in a form acceptable to the Trustee.
Whenever any 2026 Bond or 2026 Bonds shall be surrendered for transfer or exchange, the City shall execute and the Trustee shall authenticate and deliver a new 2026 Bond or 2026 Bonds of the same maturity date and in authorized denominations in the same aggregate principal amount.
No transfers or exchanges of 2026 Bonds shall be required to be made after the Record Date and prior to the Interest Payment Date or during the period commencing fifteen (15) Business Days preceding the giving of any notice of redemption and ending on the date such notice is given. No registration of transfer or exchanges shall be made of any 2026 Bond selected for redemption.
SECTION 2.09. Mutilated, Destroyed, Stolen or Lost 2026 Bonds. In case any 2026 Bond shall become mutilated or shall be believed by the City to have been destroyed, stolen or lost, upon proof of ownership satisfactory to the City and the Trustee and upon the surrender of such mutilated 2026 Bond at the Principal Corporate Trust Office of the Trustee, or upon the receipt of evidence satisfactory to the Trustee of such destruction, theft or loss and upon receipt of indemnity satisfactory to the Trustee, and also upon payment of all expenses incurred by the City and the Trustee in the premises, the City shall execute and the Trustee shall authenticate and deliver a new 2026 Bond or 2026 Bonds of the same maturity date for the same aggregate principal amount in authorized denominations of like tenor and date and bearing such numbers and notations as the Trustee shall determine in exchange and substitution for and upon cancellation of the mutilated 2026 Bond or in lieu of and in substitution for the 2026 Bond so destroyed, stolen or lost; provided, that if any such destroyed, stolen or lost 2026 Bond shall have matured, payment of the amount due thereon may be made by the City upon receipt of like proof, indemnity and payment of expenses.
Packet Pg. 290 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 22 Any replacement 2026 Bonds issued pursuant to this section shall be entitled to equal and proportionate benefits with all other 2026 Bonds issued hereunder, and the City and the Trustee shall not treat both the original 2026 Bond and any replacement 2026 Bond as being Outstanding for the purpose of determining the principal amount of 2026 Bonds which may be issued hereunder or for the purpose of determining any percentage of 2026 Bonds Outstanding hereunder, but both the original and the replacement 2026 Bond shall be treated as one and the same.
SECTION 2.10. Temporary 2026 Bonds. The 2026 Bonds may be initially issued in temporary form exchangeable for definitive 2026 Bonds when ready for delivery, which temporary 2026 Bonds shall be printed, lithographed or typewritten, shall be of such denominations as may be determined by the City, shall be issued in fully registered form and shall contain such reference to any of the provisions hereof as may be appropriate, and each temporary 2026 Bond shall be executed by the City upon the same conditions and in substantially the same manner as the definitive 2026 Bonds. If the City issues temporary 2026 Bonds, it will execute and furnish definitive 2026 Bonds without delay, and thereupon the temporary 2026 Bonds may be surrendered in exchange therefor at the Principal Corporate Trust Office of the Trustee, and the Trustee shall authenticate and deliver in exchange for such temporary 2026 Bonds an equal aggregate principal amount of definitive 2026 Bonds in authorized denominations of the same date or dates, and until so exchanged, the temporary 2026 Bonds shall be entitled to the same benefits as definitive 2026 Bonds issued hereunder.
SECTION 2.11. Use of Depository for 2026 Bonds.
(a) Notwithstanding anything to the contrary contained herein, the 2026 Bonds shall be initially registered in the name of “Cede & Co.,” as nominee of The Depository Trust Company, New York, New York, and shall be initially issued as one 2026 Bond for each of the maturities of such 2026 Bonds in the principal amounts set forth in Section 2.03, and The Depository Trust Company, New York, New York, is hereby appointed initial depository for the 2026 Bonds. After the initial registration of the 2026 Bonds, registered ownership of the 2026 Bonds, or any portion thereof, may not thereafter be transferred except:
(i) To any successor of Cede & Co., as nominee of The Depository Trust Company, or its nominee, or to any substitute depository designated pursuant to clause (ii) of this subsection (a “substitute depository”); provided, that any successor of Cede & Co., as nominee of The Depository Trust Company or substitute depository, shall be qualified under any applicable laws to provide the services proposed to be provided by it; (ii) To any substitute depository not objected to by the Trustee, upon (1) the resignation of The Depository Trust Company or its successor (or any substitute depository or its successor) from its functions as depository, or (2) a determination by the City to substitute another depository for The Depository Trust Company (or its successor) because The Depository Trust Company or its successor (or any substitute depository or its successor) is no longer able to carry out its functions as depository; provided, that any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it; or
Packet Pg. 291 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 23 (iii) To any person as provided below, upon (1) the resignation of The Depository Trust Company or its successor (or substitute depository or its successor) from its functions as depository, or (2) a determination by the City to remove The Depository Trust Company or its successor (or any substitute depository or its successor) from its functions as depository.
(b) In the case of any transfer pursuant to clause (i) or clause (ii) of subsection (a) hereof, upon receipt of the 2026 Bonds by the Trustee, together with a Written Order of the City to the Trustee, a new 2026 Bond for each maturity shall be executed, authenticated and delivered in the aggregate principal amount of the 2026 Bonds, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such Written Order of the City. In the case of any transfer pursuant to clause (iii) of subsection (a) hereof, upon receipt of all 2026 Bonds by the Trustee, together with a Written Order of the City to the Trustee, new 2026 Bonds shall be executed, authenticated and delivered in such denominations numbered in the manner determined by the Trustee and registered in the names of such persons as are requested in such Written Order of the City, subject to the limitations of Section
2.02, and thereafter the 2026 Bonds shall be transferred pursuant to the terms of Section 2.08; provided, that the Trustee shall not be required to deliver such new 2026 Bonds on a date prior to sixty (60) days after receipt of such Written Order of the City. (c) The City and the Trustee shall be entitled to treat the person in whose name any 2026 Bond is registered as the Owner thereof for all purposes hereof and any applicable laws, notwithstanding any notice to the contrary received by the City or the Trustee, and the City and the Trustee shall have no responsibility for transmitting payments to, communication with, notifying, or otherwise dealing with any beneficial owners of the 2026 Bonds. Neither the City nor the Trustee shall have any responsibility or obligation, legal or otherwise, to the beneficial owners or to any other party, including The Depository Trust Company or its successor (or substitute depository or its successor), except to The Depository Trust Company or its successor (or substitute depository or its successor) as an Owner of any 2026 Bonds. (d) So long as the 2026 Bonds are registered in the name of Cede & Co. or its registered assigns, the City and the Trustee shall cooperate with Cede & Co., as sole Owner, or its registered assigns, in effecting payment of the interest on and principal of and redemption premiums, if any, on the 2026 Bonds by arranging for payment in such manner that funds for such payments are properly identified and are made immediately available on the date they are due.
SECTION 2.12. Application of Proceeds of Sale of 2026 Bonds. Upon the receipt of payment of the net purchase price of the 2026 Bonds when the same shall have been duly sold by the City, the Trustee shall (upon receipt of a Written Order of the City) set aside and deposit such net purchase price of the 2026 Bonds in the following funds, in the following order:
(a) The Trustee shall deposit in the “City of Redding 2026 Electric System Refunding Revenue Bonds Refunding Fund” (which fund the Trustee shall establish and maintain) an amount of such purchase price and moneys equal to $[__________]; and on the date of such deposit, the Trustee shall transfer all money in the City of Redding 2026 Electric System Packet Pg. 292 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 24 Refunding Revenue Bonds Refunding Fund to the U.S. Bank Trust Company, National Association, as trustee for the Prior Bonds in accordance with a Written Order of the City; (b) The Trustee shall deposit in the “City of Redding 2026 Electric System Refunding Revenue Bonds Costs of Issuance Fund” (which fund the Trustee shall establish and maintain) the remainder of such purchase price. All money on deposit in the Costs of Issuance Fund shall be held by the Trustee in such fund and shall not be available to make payments to the Owners and shall be applied by the Trustee at the written direction of the City solely for the payment of Costs of Issuance; provided, that on October 1, 2026, or upon a prior determination by the City that all Costs of Issuance have been paid and written notice to the Trustee of such determination, any balance of money remaining in the Costs of Issuance Fund shall be withdrawn from the Costs of Issuance Fund by the Trustee and deposited in the Debt Service Fund.
The Trustee may, in its discretion, establish a temporary fund or account in its books and records to facilitate any such deposits.
ARTICLE III
REDEMPTION OF 2026 BONDS
SECTION 3.01. Redemption Prices and Terms of 2026 Bonds. (a) Optional Redemption. The 2026 Bonds maturing on and after June 1, [___], are subject to optional redemption by the City prior to their respective stated maturity dates, upon mailed notice as provided herein, as a whole or in part from such maturity dates determined by the City, on any date on or after June 1, [___], from any source of available funds, at a redemption price equal to the principal amount of the 2026 Bonds to be redeemed plus accrued interest to the redemption date, without premium.
Mandatory Redemption. [The term 2026 Bonds maturing on June 1, 20___ are subject to mandatory redemption prior to maturity, in part by lot, commencing on June 1, 20___ and on each June 1 thereafter to and including June 1, 20___, at a redemption price equal to the principal amount of the 2026 Bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium, according to the following schedule (subject to modification in the event of optional redemption as described above):]
[2026 Bonds maturing
on June 1, 20__
Redemption Date
(June 1)
Principal
Amount
_______________
† Final Maturity.]
SECTION 3.02. Selection of 2026 Bonds for Redemption. If less than all the Outstanding 2026 Bonds of any maturity date are to be redeemed at any one time, the Trustee shall select the 2026 Bonds or the portions thereof of such maturity date not previously called for Packet Pg. 293 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 25 redemption to be redeemed in integral multiples of five thousand dollars ($5,000), randomly by lot in any manner that it deems appropriate and fair.
SECTION 3.03. Notice of Redemption of 2026 Bonds. The Trustee shall provide, pursuant to Section 10.08, a notice of redemption to the respective Owners of all 2026 Bonds selected for redemption in whole or in part and to all securities depositories selected by the City to comply with custom or the rules of any securities exchange or commission or brokerage board or otherwise as may be determined by the City in its sole discretion and designated in writing to the Trustee. Such notice shall state the date of such notice, the 2026 Bonds to be redeemed, the date of issue of such 2026 Bonds, the redemption date, the redemption price, the place of redemption (including the name and appropriate address of the Trustee), the CUSIP number and maturity or maturities and, if less than all of the 2026 Bonds of any maturity are to be redeemed, the numbers of the 2026 Bonds of such maturity to be redeemed and, in the case of 2026 Bonds to be redeemed in part only, the respective portions of the principal amount thereof to be redeemed, and shall give notice that further interest on such 2026 Bonds or the portions thereof to be redeemed will not accrue from and after the redemption date, and shall require that such 2026 Bonds be then surrendered for redemption at the address of the Trustee so designated; provided, that neither the City nor the Trustee shall have any responsibility for any defect in the CUSIP number that appears on any 2026 Bond or in any redemption notice with respect thereto, and any such redemption notice may contain a statement to the effect that CUSIP numbers have been assigned by an independent service for convenience of reference and that neither the City nor the Trustee shall be liable for any inaccuracy in such numbers. If any 2026 Bond so chosen for redemption shall not be redeemable in whole, such notice shall also state that such 2026 Bond is to be redeemed in part only and that upon presentation of such 2026 Bond for redemption there will be issued in lieu of the unredeemed portion of principal thereof a new 2026 Bond or 2026 Bonds of the same maturity date of authorized denominations equal in aggregate principal amount to such unredeemed portion.
In the event of an optional redemption of 2026 Bonds, the Trustee shall provide a notice of redemption only after receipt of a Written Order of the City; provided, that if the City shall not have deposited or otherwise made available to the Trustee the money required for the payment of the redemption price of the 2026 Bonds to be redeemed at the time of such mailing, such notice of redemption shall state that the redemption is expressly conditioned upon the timely deposit of sufficient funds therefor with the Trustee.
SECTION 3.04. Partial Redemption of 2026 Bonds. Upon surrender of any 2026 Bond redeemed in part only, the City shall execute and the Trustee shall authenticate and deliver to the registered owner thereof at the expense of the City a new 2026 Bond or 2026 Bonds of the same maturity date and of authorized denominations equal in aggregate principal amount to the unredeemed portion of the 2026 Bond surrendered.
SECTION 3.05. Effect of Redemption of 2026 Bonds. If notice of redemption has been duly given as aforesaid and money for the payment of the principal of and redemption premiums, if any, on, together with interest to the redemption date on, the 2026 Bonds or portions thereof so called for redemption is held by the Trustee, then on the redemption date designated in such notice such 2026 Bonds or such portions thereof shall become due and payable, Packet Pg. 294 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 26 and from and after the date so designated interest on the 2026 Bonds or such portions thereof so called for redemption shall cease to accrue and the Owners of such 2026 Bonds shall have no rights in respect thereof except to receive payment of the principal or such portions thereof and the redemption premiums, if any, thereon and the interest accrued thereon to the redemption date.
ARTICLE IV
REVENUES
SECTION 4.01. Pledge of Net Revenues and Moneys in Electric Revenue Fund; Electric Revenue Fund. Subject to the application thereof of the terms and conditions herein provided, all Net Revenues of the Electric System and all moneys on deposit in the Electric Revenue Fund (as hereinafter defined) are hereby irrevocably pledged to the payment of the 2026 Bonds which pledge shall be on a parity with any pledge of Net Revenues and moneys in the Electric Revenue Fund securing Parity Obligations. This pledge shall constitute a first pledge of and charge and lien upon the Net Revenues of the Electric System and moneys in the Electric Revenue Fund for the payment of amounts due with respect to this Indenture and all Parity Obligations in accordance with the terms hereof and thereof.
The payment of the principal of and interest on the 2026 Bonds from Net Revenues shall be payable on a parity with the payment of the outstanding Installment Payments and interest thereon.
The general fund of the City is not liable for, and neither the faith and credit nor the taxing power of the City is pledged to, the payment of the 2026 Bonds.
In order to carry out and effectuate the obligation of the City contained herein to pay debt service on the 2026 Bonds, the City agrees and covenants that all Revenues received by it shall be deposited when and as received in the “City of Redding Electric Revenue Fund” (the “Electric Revenue Fund”), which fund has heretofore been established by the City and which fund the City agrees and covenants to maintain separate and apart from other moneys of the City so long as any 2026 Bond remains Outstanding hereunder, and all money on deposit in the Electric Revenue Fund shall be applied and used only as provided herein. The City shall pay all Maintenance and Operation Costs (including amounts reasonably required to be set aside in contingency reserves for Maintenance and Operation Costs the payment of which is not then immediately required) from the Electric Revenue Fund as they become due and payable, and all remaining money on deposit in the Electric Revenue Fund shall be set aside and deposited by the City at the following times:
On or before the fourth Business Day before each Interest Payment Date, the City shall, from the money in the Electric Revenue Fund, transfer to the Trustee for deposit in the “City of Redding 2026 Electric System Refunding Revenue Bonds Debt Service Fund” (which fund the Trustee shall establish and maintain), a sum equal to the amount of interest becoming due hereunder on the next succeeding Interest Payment Date, as the case may be, plus, if a principal payment is due on such succeeding Interest Payment Date, the amount of principal becoming due hereunder on the next succeeding June 1; provided, no deposit need be made in the Debt Service Fund if the amount available and contained therein is at least equal to the amount of interest becoming due hereunder on the next succeeding June 1 or December 1, as the case may be, plus, Packet Pg. 295 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 27 if a principal payment is due on such succeeding Interest Payment Date, the amount of principal becoming due hereunder on the next succeeding June 1.
The City shall also, from such remaining moneys in the Electric Revenue Fund, pay to the party entitled thereto or transfer or cause to be transferred to any applicable debt service or other payment fund or account for any Parity Obligations, without preference or priority between transfers made pursuant to this sentence and the preceding sentence, and in the event of any insufficiency of such moneys ratably without any discrimination or preference, on the dates specified in the proceedings relating to such Parity Obligations, the sum or sums required to be paid or deposited in such debt service or other payment fund or account with respect to principal, premium, if any, and interest on Parity Obligations (or in the case of Parity Payment Agreements, the net payments due) in accordance with the terms of such Parity Obligations.
After making the foregoing deposits and transfers hereinabove required to be made, the City shall apply any remaining money in the Electric Revenue Fund for any lawful purpose of the City, including for the payment of any Subordinate Obligations in accordance with the instruments authorizing such Subordinate Obligations; provided, however, that no moneys in the Electric Revenue Fund shall be applied to any purpose not related to the expansion of the facilities or business of the Electric System or replacement of facilities thereof, including the payment of any Subordinate Obligations, in any Fiscal Year unless amounts remaining on deposit in the Electric Revenue Fund shall be sufficient to make the remaining transfers hereinabove required to be made in such Fiscal Year with respect to 2026 Bonds and Parity Obligations.
The City shall distribute Net Revenues available for debt service on Outstanding 2026 Bonds and all Outstanding Parity Obligations on a pro rata basis without regard to whether each such Parity Obligations has a funded debt service reserve or a surety bond or other similar funding instrument.
SECTION 4.02. Establishment and Maintenance of Accounts for Use of Money in the Debt Service Fund. Subject to Section 5.04, all money in the Debt Service Fund shall be set aside by the Trustee in the following respective special accounts within the Debt Service Fund (each of which is hereby created and each of which the Trustee hereby covenants and agrees to cause to be maintained) in the following order of priority:
(1) Interest Account,
(2) Principal Account, and
(3) Surplus Account.
All money in each of such accounts shall be held in trust by the Trustee and shall be applied, used and withdrawn only for the purposes hereinafter authorized in this section. (a) Interest Account. On each June 1 and December 1, commencing December 1, 2026, the Trustee shall set aside from the Debt Service Fund and deposit in the Interest Account that amount of money which is equal to the aggregate amount of interest becoming due and payable on all Outstanding 2026 Bonds on such June 1 or December 1, as the case may be.
Packet Pg. 296 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 28 No deposit need be made in the Interest Account if the amount contained therein is at least equal to the aggregate amount of interest becoming due and payable on all Outstanding 2026 Bonds on such interest payment date.
All money in the Interest Account shall be used and withdrawn by the Trustee solely for the purpose of paying the interest on the 2026 Bonds as it shall become due and payable (including accrued interest on any 2026 Bonds purchased or redeemed prior to maturity). (b) Principal Account. On each June 1, commencing June 1, [___], the Trustee shall set aside from the Debt Service Fund and deposit in the Principal Account an amount of money equal to the aggregate principal amount of all Outstanding 2026 Bonds maturing on such June 1.
No deposit need be made in the Principal Account if the amount contained therein is at least equal to the aggregate amount of the principal of all Outstanding 2026 Bonds maturing by their terms on such June 1.
All money in the Principal Account shall be used and withdrawn by the Trustee solely for the purpose of paying the principal of the 2026 Bonds as they shall become due and payable, whether at maturity or redemption.
(c) Surplus Account. The Trustee, on or before June 1 of each year shall deposit in the Surplus Account all money remaining in the Debt Service Fund after the deposits required by Section 5.04 and subsections (a) and (b) of this section have been made. On June 16 of each year, the Trustee, if the City is not then in default hereunder, shall disburse the money in the Surplus Account to the City.
SECTION 4.03. Deposit and Investments of Money in Accounts and Funds.
Subject to Section 5.04, all money held by the Trustee in any of the accounts or funds established pursuant hereto shall be invested in Permitted Investments at the Written Order of the City. If the City fails to direct the Trustee to invest any such moneys, they shall be invested in Permitted Investments of the type described in paragraph (4) thereof. All investments hereunder shall be valued by the Trustee as frequently as may be requested by the City and not less frequently than annually at the market value thereof, exclusive of accrued interest.
For purposes of valuing such investments, market value on any particular date shall mean: (a) as to investments the bid and asked prices of which are published on a regular basis in The Wall Street Journal (or if not there, then in The New York Times), the average of the bid and asked prices for such investments so published on or most recently prior to such time of determination; (b) as to investments the bid and asked prices of which are not published on a regular basis in The Wall Street Journal or The New York Times, the average bid price at such time of determination for such investments by any two nationally recognized government securities dealers (selected by the Trustee in its absolute discretion) at the time making a market in such investments or the bid price published by a nationally recognized pricing service; (c) as to certificates of deposit and bankers acceptances, the face amount thereof plus accrued interest; and Packet Pg. 297 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 29 (d) as to any investment not specified above, the value thereof established by prior agreement between the City and the Trustee.
Subject to Section 5.04, all investment earnings or profits received on any money held in the funds and accounts established hereunder shall be deposited in the Debt Service Fund (except for investment earnings on the Rebate Fund, which shall be retained therein).
The City acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the City the right to receive brokerage confirmations of security transactions as they occur, the City specifically waives receipt of such confirmation to the extent permitted by law. The Trustee will furnish the City with periodic cash transaction statements which shall include details for all investment transactions made by the Trustee hereunder. The Trustee or any of its affiliates may act as sponsor, adviser or manager in connection with any investments made by the Trustee hereunder.
SECTION 4.04. Conditions for the Execution of Parity Obligations. The City shall not incur any obligation the payment of which is payable from and secured by a lien and charge on the Net Revenues or moneys in the Electric Revenue Fund prior to the lien and charge on Net Revenues and moneys in the Electric Revenue Fund securing the 2026 Bonds. The City may at any time execute and deliver any Parity Obligation, the payment of which is payable from and secured by a lien and charge on the Net Revenues and moneys in the Electric Revenue Fund on a parity with the lien and charge on Net Revenues and moneys in the Electric Revenue Fund securing the 2026 Bonds, provided:
(a) Either –
(1) during any twelve (12) consecutive calendar months out of the immediately preceding eighteen (18) calendar month period, the Adjusted Annual Net Revenues were at least equal to one hundred ten percent (110%) of the Maximum Annual Debt Service for all Outstanding 2026 Bonds and all Outstanding Parity Obligations plus the Parity Obligation proposed to be executed; or
(2) as evidenced by a Certificate of the City, the projected Adjusted Annual Net Revenues during the succeeding first complete Fiscal Year following issuance of such Parity Obligation in which interest is not capitalized in whole or in part from the proceeds of Parity Obligations, is at least equal to one hundred ten percent (110%) of the Maximum Annual Debt Service for all Outstanding 2026 Bonds and all Outstanding Parity Obligations plus the Parity Obligation proposed to be executed;
(b) If the Parity Obligation proposed to be executed is not a Parity Payment Agreement, the proceeds of such Parity Obligation proposed to be executed shall be used solely to finance or refinance (including reimbursement to the City of amounts advanced for such costs) one or more additions, betterments or improvement to the Electric System as designated by the City and to pay any incidental costs and expenses related thereto (including the costs of issuance, execution or delivery of such proposed Parity Obligation); Packet Pg. 298 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 30 (c) With respect to any Parity Obligation to be executed in connection with a Payment Agreement, there shall have been delivered to the City evidence that the incurrence of such Parity Obligation and Payment Agreement will not in and of itself cause a downgrade of the rating issued by the Rating Agencies then rating the 2026 Bonds or any Parity Obligation; (d) There shall have been delivered to the City an Opinion of Counsel substantially to the effect that (1) the City has the right and power under applicable law to execute and deliver the Parity Obligation, and the Parity Obligation has been duly and lawfully executed and delivered by the City, is in full force and effect and is a valid and binding special obligation of the City and enforceable in accordance with its terms (except as enforcement may be limited by bankruptcy, moratorium, insolvency, reorganization, fraudulent conveyance and other similar laws relating to the enforcement of creditors’ rights), and (2) such Parity Obligation has been duly and validly authorized and issued in accordance herewith; and (e) If required by the terms of such Parity Obligation, a separate reserve has been established for such Parity Obligation and that provision has been made to fund such reserve. (f) No Event of Default (or any event which would become an Event of Default once all notice or grace periods have passed) exists unless such Event of Default or default shall be cured upon such issuance.
Notwithstanding the foregoing provisions, neither clause (a) nor clause (b) above shall limit the ability of the City to execute any Parity Obligations at any time to refund any Outstanding 2026 Bonds and Outstanding Parity Obligations which results in a net present value savings to the City, inclusive of all costs of such refunding.
SECTION 4.05. Subordinate Obligations. The City may incur Subordinate Obligations without meeting any of the tests set forth in Section 4.04.
ARTICLE V
COVENANTS OF THE CITY
SECTION 5.01. Punctual Payment. The City will punctually pay the interest on and principal of and redemption premiums, if any, on the 2026 Bonds in strict conformity with the terms hereof and of the 2026 Bonds, and will faithfully observe and perform all the agreements, conditions, covenants and terms contained herein and in the 2026 Bonds required to be observed and performed by it.
SECTION 5.02. Against Encumbrances. The City will pay or cause to be paid when due all sums of money that may become due or purporting to be due for any labor, services, materials, supplies or equipment furnished, or alleged to have been furnished, to or for the City in, upon, about or relating to the Electric System and will keep the Electric System free of any and all liens against any portion of the Electric System. In the event any such lien attaches to or is filed against any portion of the Electric System, the City will cause each such lien to be fully discharged and released at the time the performance of any obligation secured by any such lien matures or becomes due, except that if the City desires to contest any such lien it may do so.
Packet Pg. 299 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 31 If any such lien shall be reduced to final judgment and such judgment or any process as may be issued for the enforcement thereof is not promptly stayed, or if so stayed and such stay thereafter expires, the City will forthwith pay or cause to be paid and discharged such judgment. The City will, to the maximum extent permitted by law, indemnify and hold the Trustee harmless from, and defend each of them against, any claim, demand, loss, damage, liability or expense (including attorneys' fees) as a result of any such lien or claim of lien against any portion of the Electric System.
The City will not create or give, or permit the creation or giving of, any priority for payment, mortgage, lien, pledge or encumbrance upon any of the Net Revenues or moneys in the Electric Revenue Fund, except as provided in Section 4.04.
SECTION 5.03. Against Sale or Other Disposition of the Electric System.
The City will not sell, transfer or otherwise dispose of any of the works, plant, properties, facilities or other part or rights of the Electric System or any real or personal property comprising a part of the Electric System if such sale, transfer or disposition would cause the City to be unable to satisfy the requirements of Section 5.12 hereof.
SECTION 5.04. Tax Covenants and Matters; Rebate Fund.
(a) The City will not directly or indirectly use or permit the use of any proceeds of the 2026 Bonds provided herein or any other funds of the City or take or omit to take any action that would cause the 2026 Bonds to be “arbitrage bonds” within the meaning of Section 148(a) of the Code or “federal guaranteed obligations” within the meaning of Section 149(b) of the Code or “private activity bonds” as described in Section 141 of the Code. The City will not allow 10% or more of the proceeds of the 2026 Bonds provided herein to be used in the trade or business of any nongovernmental units and will not loan 5% or more of the proceeds of the obligations provided herein to any nongovernmental units.
To that end, as long as any 2026 Bonds are unpaid, the City will comply with all requirements of such sections of the Code to the extent applicable to the obligations provided herein. In the event that at any time the City is of the opinion that for purposes of this Section 5.04 it is necessary to restrict or to limit the yield on the investment of any moneys held by the Trustee under this Indenture, the City shall so instruct the Trustee in writing, and the Trustee shall act in accordance with such instructions.
The City covenants that it will at all times do and perform all acts necessary or desirable in order to assure that the interest on the 2026 Bonds will not be included in gross income of the holders of the 2026 Bonds for federal income tax purposes and the City covenants that it will take no action that would result in such interest being so included. (b) The City will pay or cause to be paid the Rebate Requirement as provided in the Tax Certificate. This covenant shall survive payment in full of the 2026 Bonds. The City shall establish and maintain a fund separate from any other fund established and maintained hereunder designated the Rebate Fund. The City will cause the Rebate Requirement to be deposited in the Rebate Fund as provided in the Tax Certificate (which is incorporated herein by Packet Pg. 300 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 32 reference). Subject to the provisions of this section, moneys held in the Rebate Fund are hereby pledged to secure payments to the United States of America. The City, the Trustee and the holders of the 2026 Bonds will have no rights in or claim to such moneys. The City will invest all amounts held in the Rebate Fund in Permitted Investments.
Upon receipt of the Rebate Instructions required by the Tax Certificate, the City shall remit part or all of the balance held in the Rebate Fund to the United States of America as so directed. In addition, if the Rebate Instructions so direct, the City will deposit, or cause to be deposited moneys into or transfer or cause to be transferred moneys out of the Rebate Fund from or into such accounts or funds as the Rebate Instructions direct.
Notwithstanding any provision of this section or of Article IX, if the City receives an opinion of Bond Counsel that any specified action required under this section is no longer required or that some further or different action is required to maintain the exclusion from gross income for federal income tax purposes of interest on the 2026 Bonds, the City may conclusively rely on such opinion in complying with the requirements of this section, and the covenants hereunder shall be deemed to be modified to that extent.
SECTION 5.05. Maintenance and Operation of the Electric System; Budgets.
The City will maintain and preserve the Electric System in good repair and working order at all times and will operate the Electric System in an efficient and economical manner and will pay all Maintenance and Operation Costs as they become due and payable.
Not later than September 1 of each year, the City will adopt and, if requested, make available to the Trustee, a budget approved by the City Council of the City setting forth the estimated Maintenance and Operation Costs and the estimated payments for Parity Obligations and Subordinate Obligations for the then current Fiscal Year; provided, that any such budget may be amended at any time during any Fiscal Year and, if requested, such amended budget shall be made available to the Trustee. The Trustee shall have no duty to review such budget.
SECTION 5.06. Compliance with Contracts. The City will comply with, keep, observe and perform all agreements, conditions, covenants and terms, express or implied, required to be performed by it contained in all contracts for the use of the Electric System and all other contracts affecting or involving the Electric System to the extent that the City is a party thereto.
SECTION 5.07. Continuing Disclosure. The City hereby covenants and agrees that it will comply with and carry out all of its obligations under the Continuing Disclosure Agreement to be delivered by the City in connection with the execution and delivery of the 2026 Bonds. Notwithstanding any other provision hereof, failure of the City to comply with the Continuing Disclosure Agreement shall not be considered an Event of Default hereunder; provided, however, that the Trustee, upon the direction of the Owners or any beneficial owner of 2026 Bonds, may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations in this section and the Continuing Disclosure Agreement.
Packet Pg. 301 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 33 SECTION 5.08. Insurance. The City will procure and maintain such insurance relating to the Electric System which it shall deem advisable or necessary to protect its interests and the interests of the Trustee, which insurance shall afford protection in such amounts and against such risks as are usually covered in connection with municipal electric utility systems similar to the Electric System; provided, that any such insurance may be maintained under a selfinsurance program so long as such self-insurance is maintained in the amounts and manner usually maintained in connection with municipal electric utility systems similar to the Electric System and is, in the opinion of an Insurance Consultant, financially sound. All policies of insurance required to be maintained herein shall provide that the Trustee shall be given thirty (30) days’ written notice of any intended cancellation thereof or reduction of coverage provided thereby. The Trustee is not responsible for the sufficiency or adequacy of any insurance provided hereunder.
SECTION 5.09. Accounting Records and Financial Statements. The City will keep appropriate accounting records in which complete and correct entries shall be made of all transactions relating to the Electric System, which records shall be available for inspection by the Trustee (who shall have no duty to inspect) at reasonable hours and under reasonable conditions.
SECTION 5.10. Protection of Security and Rights of Owners. The City will preserve and protect the security of the 2026 Bonds and the rights of the Owners hereunder and will warrant and defend such rights against all claims and demands of all persons.
SECTION 5.11. Payment of Taxes and Compliance with Governmental Regulations. The City will pay and discharge all taxes, assessments and other governmental charges which may hereafter be lawfully imposed upon the Electric System or any part thereof when the same shall become due. The City will duly observe and conform with all valid regulations and requirements of any governmental authority relative to the operation of the Electric System or any part thereof, but the City shall not be required to comply with any regulations or requirements so long as the validity or application thereof shall be contested in good faith.
SECTION 5.12. Amount of Rates and Charges. The City will at all times fix, prescribe and collect rates and charges for the services, facilities and electricity of the Electric System during each Fiscal Year which will be at least sufficient to yield: (a) Adjusted Annual Revenues for such Fiscal Year at least equal to the sum of the following for such Fiscal Year:
(i) Maintenance and Operation Costs; (ii) Adjusted Annual Debt Service, and (iii) all other payments required to meet any other obligations of the City which are charges, liens or encumbrances upon or payable from the Electric Revenue Fund, including all amounts owing under Subordinate Obligations; and (b) Adjusted Annual Net Revenues for such Fiscal Year equal to at least one hundred ten percent (110%) of Adjusted Annual Debt Service for such Fiscal Year.
The City may make adjustments from time to time in such rates and charges and may make such classification thereof as it deems necessary, but shall not reduce the rates and charges then in effect unless the Adjusted Annual Revenues and the Adjusted Annual Net Revenues from such reduced rates and charges will at all times be sufficient to meet the requirements of this Section.
SECTION 5.13. Collection of Rates and Charges. The City will have in effect at all times rules and regulations requiring each consumer or customer located on any Packet Pg. 302 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 34 premises connected with the Electric System to pay the rates, fees and charges applicable to the Electric Service to such premises and providing for the billing thereof and for a due date and a delinquency date for each bill. The City will not permit any part of the Electric System or any facility thereof to be used or taken advantage of free of charge by any corporation, firm or person, or by any public agency (including the United States of America, the State of California and any city, county, district, political subdivision, public corporation or agency of any thereof); provided, that the City may without charge use the facilities of the Electric System and the Electric Service.
Nothing herein shall prevent the City, in its sole and exclusive discretion, from permitting other parties from selling electricity to retail customers within the service area of the Electric System; provided, however, that permitting such sales shall not relieve the City of its obligations hereunder.
SECTION 5.14. Further Assurances. The City will adopt, deliver, execute and make any and all further assurances, instruments and resolutions as may be reasonably necessary or proper to carry out the intention or to facilitate the performance hereof and for the better assuring and confirming unto the Owners of the rights and benefits provided to it herein.
ARTICLE VI
THE TRUSTEE
SECTION 6.01. The Trustee. U.S. Bank Trust Company, National Association, at its Principal Corporate Trust Office, is hereby appointed Trustee hereunder for the purpose of receiving all money which the City is required to deposit with the Trustee hereunder and to allocate, use and apply such money as provided herein.
The City at any time may (prior to the occurrence of an Event of Default which shall then be continuing), upon any breach of the trust set forth herein, remove any Trustee and appoint any successor thereto upon thirty (30) days’ written notice to the removed Trustee; provided, that any such successor Trustee shall be a bank or trust company or national banking association and that has a combined capital (exclusive of borrowed capital) and surplus of at least one hundred million dollars ($100,000,000) and is subject to supervision or examination by federal or state authority. If such bank or trust company or national banking association publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this section the combined capital and surplus of such bank or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.
Any Trustee may at any time resign by giving thirty (30) days’ written notice to the City and by giving to the Owners notice of such resignation, which notice shall be mailed to the Owners at their addresses appearing in the registration books maintained by the Trustee pursuant to Section 2.08. Upon receiving such notice of resignation, the City shall promptly appoint a successor Trustee by an instrument in writing; provided, that if no such successor shall have been appointed by the City within thirty (30) days after the receipt by the City of such notice, the resigning Trustee may petition any court of competent jurisdiction to appoint a successor Trustee.
Packet Pg. 303 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 35 Any resignation or removal of a Trustee and appointment of a successor Trustee shall become effective only upon the appointment of and the acceptance of appointment by the successor Trustee.
The Trustee is hereby authorized and directed to pay the interest on the 2026 Bonds on each Interest Payment Date as provided herein and to pay the principal of and the redemption premiums, if any, on the 2026 Bonds when duly presented for payment at maturity or on redemption prior to maturity, and to cancel and dispose of all 2026 Bonds upon payment thereof in a manner deemed appropriate by it.
The City shall from time to time, subject to any agreement between the City and the Trustee then in force, pay to the Trustee compensation for its services, reimburse the Trustee for all its advances and expenditures, including but not limited to advances to and fees and expenses of independent accountants, counsel and engineers or other experts employed by it in the exercise and performance of its duties and obligations hereunder, and indemnify and save the Trustee and its officers, directors, employees and agents harmless against any costs, expenses, losses and liabilities not arising from its own negligence or willful misconduct which it may incur in the exercise and performance of its duties and obligations hereunder. The Trustee’s rights to indemnification and protection from liability hereunder and its rights to payment of its fees and expenses shall survive its resignation or removal and final payment or defeasance of the 2026 Bonds.
Any bank or trust company into which the Trustee may be merged or converted or with which it may be consolidated, or any bank or trust company resulting from any merger, conversion or consolidation to which it shall be a party, or any bank or trust company to which the Trustee may sell or transfer all or substantially all of its corporate trust business, if such bank or trust company would be eligible under this section to serve as Trustee, shall be the successor Trustee hereunder without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding.
SECTION 6.02. Liability of Trustee. The recitals of facts, agreements and covenants contained herein and in the 2026 Bonds shall be taken as statements, agreements and covenants of the City, and the Trustee does not assume any responsibility for the correctness of the same and does not make any representation as to the validity or sufficiency hereof or of the 2026 Bonds, the adequacy of any security afforded thereunder, or the correctness or completeness of any information contained in any offering materials distributed in connection with the sale of any 2026 Bonds, and shall not incur any responsibility in respect of any of the foregoing other than in connection with the duties or obligations assigned to or imposed upon it hereunder. The Trustee shall not be liable in connection with the performance of its duties and obligations hereunder except for its own negligence or willful misconduct.
The Trustee shall be under no obligation to exercise any of the rights vested in it hereunder at the request or direction of any Owner pursuant hereto unless such Owner shall have offered to the Trustee security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.
Packet Pg. 304 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 36 Except during the continuance of an Event of Default, (a) the Trustee undertakes to perform such duties and obligations and only such duties and obligations as are specifically set forth herein, and no implied duties or obligations shall be read herein against the Trustee; and (b) in the absence of negligence or willful misconduct on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements hereof.
In case an Event of Default has occurred and is then continuing, the Trustee shall exercise such rights vested in it hereby, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.
The Trustee shall not be accountable for the use by the City of any money which the Trustee releases to the City or which the City otherwise receives, or to verify compliance by the City with the provisions of Section 4.01 or Section 2.12. The Trustee shall not have any obligation to incur any financial or other liability or risk in performing any duty or obligation or in exercising any right or remedy hereunder. The Trustee shall be entitled to interest on all amounts advanced by it hereunder at the maximum interest rate permitted by law. The Trustee in its individual or other capacity may become the owner or pledgee of the 2026 Bonds with the same rights it would have if it were not the Trustee.
The Trustee shall not be deemed to have knowledge of any Event of Default (other than a payment default hereunder) until an officer of the Trustee at its Principal Corporate Trust Office has been notified by the City in writing that such an Event of Default has occurred. The Trustee shall not be bound to ascertain or inquire as to the performance or observance by any other party of any of the agreements, conditions, covenants or terms hereof or of any of the documents executed in connection with the 2026 Bonds.
The Trustee shall not be liable for an error of judgement made in good faith unless it has been proven that the Trustee was negligent in ascertaining the pertinent facts.
The Trustee shall not be liable for any action taken or omitted by it in good faith at the direction of the holders of not less than a majority in principal amount of the 2026 Bonds as to the time, method, and place of conducting any proceedings for any remedy available to the Trustee or the exercising of any power conferred by this Indenture.
Before taking action under Article VIII or upon the direction of the Owners, the Trustee may require that indemnity satisfactory to it be furnished to it to protect it against all fees and expenses, including those of its attorneys and advisors, and protect it against all liability it may incur.
No provision herein shall require to the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers.
Packet Pg. 305 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 37 Under no circumstances shall the Trustee be liable in its individual capacity for the payment of the 2026 Bonds.
SECTION 6.03. Notice to Trustee. The Trustee shall be protected in acting upon any bond, certificate, consent, indenture, notice, order, report, request, requisition or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. The Trustee may consult with counsel, who may be counsel to the City, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered hereunder in good faith and in accordance therewith.
The Trustee shall not be bound to recognize any person as the Owner of a 2026 Bond unless and until such 2026 Bond is submitted for inspection, if required, and his title thereto satisfactorily established, if disputed.
Whenever in the administration of its duties and obligations hereunder the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be deemed to be conclusively proved and established by a Certificate of the City, and such certificate shall be full warrant to the Trustee for any action taken or suffered under the provisions hereof upon the faith thereof, but in its discretion the Trustee may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.
ARTICLE VII
AMENDMENT OF OR SUPPLEMENT TO THE INDENTURE
SECTION 7.01. Procedure for Amendment of or Supplement to the Indenture. The Indenture and the rights and obligations of the City and of the Owners may be amended or supplemented at any time by a Supplemental Indenture which shall become binding when the written consents of the Owners of at least sixty percent (60%) in aggregate principal amount of the 2026 Bonds then Outstanding (exclusive of 2026 Bonds disqualified as provided in Section 7.02) are filed with the Trustee; provided, that no such amendment or supplement shall (1) extend the maturity of any 2026 Bond, or reduce the interest rate thereon, or otherwise alter or impair the obligation of the City to pay the interest thereon or the principal thereof or any redemption premium thereon at the time and place and at the rate and in the currency and from the funds provided herein without the express written consent of the Owner of such 2026 Bond, or (2) reduce the percentage of 2026 Bonds required for the written consent to any amendment hereof or supplement hereto, or (3) modify any rights or obligations of the Trustee without its prior written assent thereto.
The Indenture and the rights and obligations of the City and of the Owners may also be amended or supplemented at any time by a Supplemental Indenture which shall become binding upon execution, without the consent of any Owners, but only to the extent permitted by law and only for any one or more of the following purposes:
Packet Pg. 306 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 38 (a) To add to the agreements and covenants of the City contained herein other agreements and covenants thereafter to be observed, or to surrender any right or remedy herein reserved to or conferred upon the City;
(b) To make such provisions for the purpose of curing any ambiguity contained herein or of curing, correcting or supplementing any defective provision contained herein or in regard to questions arising hereunder as the City may deem necessary or desirable and not inconsistent herewith, which shall not materially adversely affect the interests of the Owners;
(c) To provide for the issuance of any additional bonds and to provide the terms and conditions under which such additional bonds may be issued, subject to and in accordance with the provisions hereof;
(d) To amend or supplement the Indenture in such manner as to permit the qualification hereof under the Trust Indenture Act of 1939, as amended, or any similar federal statute hereafter in effect, and to add such other agreements, conditions, covenants and terms as may be permitted by said act or any similar federal statute, which shall not materially adversely affect the interests of the Owners of the 2026 Bonds; (e) To maintain the exclusion under the Code of interest on the 2026 Bonds from gross income for federal income tax purposes or the exemption of interest on the 2026 Bonds from State of California personal income taxes;
(f) To the extent necessary to obtain a municipal bond insurance policy or to maintain any then existing rating on the 2026 Bonds;
(g) For any other purpose that does not materially adversely affect the interests of the Owners.
The Trustee may conclusively rely upon and accept an Opinion of Counsel that an amendment hereof is in conformity with the provisions of this article, is enforceable against the City and does not adversely impact the tax-exempt status of the interest on the 2026 Bonds. The Trustee is not obligated to enter into any amendment or supplement that adversely impacts its rights.
Copies of any amendments of or supplements to the Indenture shall be sent to Fitch by the City.
SECTION 7.02. Disqualified 2026 Bonds. Any 2026 Bonds owned or held by or for the account of the City shall not be deemed Outstanding for the purpose of any consent or other action or any calculation of Outstanding 2026 Bonds provided for herein, and shall not be entitled to consent to, or take any other action provided for herein.
SECTION 7.03. Endorsement or Replacement of 2026 Bonds After Amendment. After the effective date of any action taken as hereinabove provided, the City may determine that the 2026 Bonds may bear a notation, by endorsement in form approved by the City, Packet Pg. 307 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 39 as to such action, and in that case upon demand of the Owner of any 2026 Bond Outstanding on such effective date and presentation of such Owner’s 2026 Bond for such purpose at the Principal Corporate Trust Office, a suitable notation as to such action shall be made on such 2026 Bond; provided, that if the City shall so determine, new 2026 Bonds so modified as, in the opinion of the City, shall be necessary to conform to such action shall be prepared and executed, and in that case upon demand of the Owner of any 2026 Bond Outstanding at such effective date such new 2026 Bonds shall be exchanged at the Principal Corporate Trust Office of the Trustee, without cost to each Owner, for 2026 Bonds then Outstanding, upon surrender of such Outstanding 2026 Bonds.
SECTION 7.04. Amendment by Mutual Consent. The provisions of this article shall not prevent any Owner from accepting any amendment as to the particular 2026 Bonds held by such Owner, provided that due notation thereof is made on such 2026 Bonds.
ARTICLE VIII
EVENTS OF DEFAULT AND REMEDIES
SECTION 8.01. Events of Default and Acceleration of Maturities. If one or more of the following events (herein an “Event of Default”) shall happen, that is to say:
(a) If default shall be made in the due and punctual payment of the interest on any 2026 Bond when and as the same shall become due and payable; (b) If default shall be made in the due and punctual payment of the principal of or the redemption premium, if any, on any 2026 Bond when and as the same shall become due and payable, whether at maturity as therein expressed, by declaration or otherwise; (c) If default shall be made by the City in the observance or performance of any of the other agreements, conditions, covenants or terms on its part contained herein or in the 2026 Bonds, and such default shall have continued for a period of thirty (30) days (or for such additional time as is reasonably required to correct the same after the City shall have given notice in writing of such default to the Trustee, but in no event later than sixty (60) days after the delivery of such default notice); provided, that such default shall not constitute an Event of Default hereunder if the City shall commence to cure such default within such thirty (30)-day period and thereafter diligently and in good faith shall proceed to cure such default within a reasonable period of time; or (d) If the City shall file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law of the United States of America or the State of California, or if a court of competent jurisdiction shall approve a petition, filed with or without the consent of the City, seeking reorganization under the federal bankruptcy laws or any other applicable law of the United States of America or the State of California, or if, under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the City or of the whole or any substantial part of its property; Packet Pg. 308 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 40 then, and in each and every such case during the continuance of such Event of Default, the Trustee may, and upon the written request of the Owners of not less than a majority in aggregate principal amount of the 2026 Bonds at the time Outstanding shall, by notice in writing to the City, declare the principal of all of the 2026 Bonds then Outstanding and the interest accrued thereon to be immediately due and payable, and upon any such declaration the same shall become and shall become due and payable, anything contained herein or in the 2026 Bonds to the contrary notwithstanding; provided, that if at any time after the principal of the 2026 Bonds shall have been so declared due and payable and before any judgment or decree for the payment of the money due thereunder shall have been obtained or entered, the City shall deposit with the Trustee a sum sufficient to pay all principal on the 2026 Bonds matured prior to such declaration and all matured installments of interest (if any) upon all the 2026 Bonds, with interest at the rate borne by such 2026 Bonds on such overdue installments of interest and principal, and all expenses of the Trustee, including attorneys’ fees, together with interest on any amounts advanced as provided herein, and any and all other defaults known to the Trustee (other than in the payment of interest and principal on the 2026 Bonds due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Trustee (or provision deemed by the Trustee to be adequate shall have been made therefor), then, and in every such case, the Owners of at least a majority in aggregate principal amount of the 2026 Bonds then Outstanding, by written notice to the City and to the Trustee, may (on behalf of the Owners of all the 2026 Bonds) rescind and annul such declaration and its consequences; except that no such rescission or annulment shall extend to or shall affect any subsequent default or shall impair or exhaust any right consequent thereon.
SECTION 8.02. Application of Funds Upon Acceleration. All money in the funds provided herein (except the Rebate Fund) upon the date of the declaration of acceleration by the Trustee as provided in Section 8.01, and all Net Revenues thereafter available to the City hereunder, shall be transmitted to the Trustee and shall be applied by the Trustee in the following order:
First, to the payment of the costs, fees and expenses of the Trustee, if any, in carrying out the provisions of this article, including reasonable compensation to its agents, attorneys and counsel, and thereafter to the payment of the costs and expenses of the Owners in providing for the declaration of such Event of Default, including reasonable compensation to their agents, attorneys and counsel;
Second, upon presentation of the several 2026 Bonds, and the stamping thereon of the amount of the payment if only partially paid or upon the surrender thereof if fully paid, to the payment of the whole amount then owing and unpaid upon the 2026 Bonds for interest and principal, with interest on the overdue interest and principal at the rate borne by such 2026 Bonds, and in case such money shall be insufficient to pay in full the whole amount so owing and unpaid upon the 2026 Bonds, then to the payment of such interest, principal and interest on overdue interest and principal without preference or priority among such interest, principal and interest on overdue interest and principal, ratably to the aggregate of such interest, principal and interest on overdue interest and principal.
SECTION 8.03. Institution of Legal Proceedings by Trustee. If one or more of the Events of Default shall happen and be continuing, the Trustee in its discretion may, and Packet Pg. 309 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 41 shall, at the direction of the Owners of a majority in aggregate principal amount of the 2026 Bonds then Outstanding, and upon being indemnified to its satisfaction therefor, proceed to protect or enforce its rights or the rights of the Owners of the 2026 Bonds under this Indenture by a suit in equity or action at law, either for the specific performance of any covenant or agreement contained herein, or in aid of the execution of any power herein granted, or by mandamus or other appropriate proceeding for the enforcement of any other legal or equitable remedy as shall be deemed most effectual in support of any of its rights and duties hereunder.
SECTION 8.04. Non-Waiver. Nothing in this article or in any other provision hereof, or in the 2026 Bonds, shall affect or impair the obligation of the City, which is absolute and unconditional, to pay the interest on and the principal of and the redemption premiums, if any, on the 2026 Bonds to the respective Owners of the 2026 Bonds at the scheduled dates of maturity or upon prior redemption as herein provided out of the Revenues and the other funds provided herein pledged for such payment, or affect or impair the right of action, which is also absolute and unconditional, of such Owners to institute suit to enforce such payment by virtue of the contract embodied in the 2026 Bonds and herein.
A waiver of any default or breach of duty or contract by any Owner shall not affect any subsequent default or breach of duty or contract, or impair any rights or remedies on any such subsequent default or breach, and no delay or omission by the Trustee or any Owner to exercise any right accruing upon any default hereunder shall impair any such right or remedy or shall be construed to be a waiver of any such default or an acquiescence therein, and every remedy conferred upon the Owners by the Law or by this article may be enforced and exercised from time to time and as often as shall be deemed expedient by the Owners.
If any suit, action or proceeding to enforce any right or exercise any remedy is abandoned or determined adversely to the Owners, then the City, the Trustee and the Owners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken.
SECTION 8.05. Actions by Trustee as Attorney-in-Fact. Any suit, action or proceeding which any Owner shall have the right to bring to enforce any right or remedy hereunder may be brought by the Trustee for the equal benefit and protection of all Owners, and the Trustee is hereby appointed (and the successive respective Owners of the 2026 Bonds issued hereunder, by taking and holding the same, shall be conclusively deemed so to have appointed it) the true and lawful attorney-in-fact of the Owners for the purpose of bringing any such suit, action or proceeding and to do and perform any and all acts and things for and on behalf of the Owners as a class or classes as may be necessary or advisable in the opinion of the Trustee as such attorney-infact; provided, that the Trustee shall have no duty or obligation to enforce any right or remedy unless it has been indemnified by the Owners from any liability or expense, including without limitation fees and expenses of its attorneys.
The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claim of the Trustee and the Owners allowed in any judicial proceeding relative to the City, its creditors or its property.
Packet Pg. 310 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 42 The Owners of a majority in principal amount of the 2026 Bonds may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust powers conferred on it, provided that, the Trustee is provided indemnity satisfactory to it prior to taking such actions and provided further that, the Trustee may refuse to follow any direction that conflicts with law or the Indenture, is unduly prejudicial to the rights of other Owners, or would involve the Trustee in personal liability.
SECTION 8.06. Remedies Not Exclusive. No remedy herein conferred upon or reserved to the Owners is intended to be exclusive of any other remedy, and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing, at law or in equity or by statute or otherwise, and may be exercised without exhausting and without regard to any other remedy conferred by the Law or any other law.
SECTION 8.07. Limitation on Owners’ Right to Sue. No Owner of any 2026 Bond issued hereunder shall have the right to institute any suit, action or proceeding at law or equity, for any remedy under or upon this Indenture, unless (a) such Owner shall have previously given to the Trustee written notice of the occurrence of an Event of Default as defined in Section
8.01 hereunder; (b) the Owners of at least a majority in aggregate principal amount of all the 2026 Bonds then Outstanding shall have made written request upon the Trustee to exercise the powers hereinbefore granted or to institute such suit, action or proceeding in its own name; (c) said Owners shall have tendered to the Trustee security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request; and (d) the Trustee shall have refused or omitted to comply with such request for a period of sixty (60) days after such request shall have been received by, and said tender of indemnity shall have been made to, the Trustee.
Such notification, request, tender of indemnity and refusal or omission are hereby declared, in every case, to be conditions precedent to the exercise by any Owner of 2026 Bonds of any remedy hereunder; it being understood and intended that no one or more Owners of 2026 Bonds shall have any right in any manner whatever by his or their action to enforce any right under this Indenture, except in the manner herein provided, and that all proceedings at law or in equity to enforce any provision of the Indenture shall be instituted, had and maintained in the manner herein provided and for the equal benefit of all Owners of the 2026 Bonds Outstanding.
ARTICLE IX
DEFEASANCE
SECTION 9.01. Discharge of 2026 Bonds. If the City shall pay or cause to be paid, or there shall otherwise be paid, to the Owners of all Outstanding 2026 Bonds the interest thereon and the principal thereof and the redemption premiums, if any, thereon at the times and in the manner stipulated therein and herein, then the Owners of such 2026 Bonds shall cease to be entitled to the pledge of Net Revenues and moneys in the Electric Revenue Fund securing the 2026 Bonds, and all agreements, covenants and other obligations of the City to the Owners of such 2026 Bonds hereunder shall thereupon cease, terminate and become void and be discharged and satisfied.
Packet Pg. 311 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 43 Any Outstanding 2026 Bonds shall prior to the scheduled maturity dates thereof be deemed to have been paid within the meaning of and with the effect expressed in the first paragraph of this section (except that the City shall remain liable for the payment of such 2026 Bonds, but only from the money deposited with the Trustee as herein provided) if there shall have been deposited with the Trustee money to be held in trust by the Trustee sufficient for such payment at the maturity dates thereof or the redemption dates thereof.
Any Outstanding 2026 Bonds shall prior to the scheduled maturity dates thereof be deemed to have been paid within the meaning of and with the effect expressed in the first paragraph of this section (except that the City shall remain liable for the payment of such 2026 Bonds, but only from the money or Defeasance Securities deposited with the Trustee as herein provided) if (1) there shall have been deposited with the Trustee either money in an amount which shall be sufficient or Defeasance Securities which are not subject to redemption prior to maturity the interest on and the principal of which when paid will provide money which, together with the money, if any, deposited with the Trustee at the same time, shall be sufficient to pay when due the interest to become due on such 2026 Bonds on and prior to the maturity dates thereof or the redemption dates thereof and the principal of and the redemption premiums, if any, on such 2026 Bonds on the maturity dates thereof or the redemption dates thereof, (2) there shall be provided to the City a verification report from an independent nationally recognized certified public accountant stating its opinion as to the sufficiency of the moneys or Defeasance Securities deposited with the Trustee to pay and discharge the principal of, premium, if any, and interest on all Outstanding 2026 Bonds to be defeased in accordance with this Section, as and when the same shall become due and payable, and an Opinion of Counsel (which may rely upon the opinion of the certified public accountant) to the effect that the 2026 Bonds being defeased have been legally defeased in accordance with this Indenture and any applicable Supplemental Indenture, and (3) the City shall have given the Trustee (in form satisfactory to the Trustee) irrevocable instructions to mail, as soon as practicable, a notice to the Owners of such 2026 Bonds that the deposit required by clause (1) of this paragraph has been made with the Trustee and that such 2026 Bonds are deemed to have been paid in accordance with this section, and stating the maturity dates thereof or the redemption dates thereof upon which money is to be available for the payment of the principal of and the redemption premiums, if any, on such 2026 Bonds; provided, that no Defeasance Securities or money deposited with the Trustee pursuant to this section (nor any interest on or principal payments of such Defeasance Securities) shall be withdrawn or used for any purpose other than, and such Defeasance Securities and money shall be held in trust for, the payment of the interest on and the principal of and the redemption premiums, if any, on such 2026 Bonds as provided herein, except that any money received from such interest on or principal payments of such Defeasance Securities deposited with the Trustee which is not then needed for the foregoing purpose shall, to the extent practicable, be reinvested as specified in a Written Order of the City filed with the Trustee in Defeasance Securities maturing at the times and in the amounts sufficient to pay when due the interest on and the principal of and the redemption premiums, if any, on such 2026 Bonds on and prior to such maturity dates thereof or redemption dates thereof, and all interest earned from such reinvestments shall be deposited in the Electric Revenue Fund.
SECTION 9.02. Unclaimed Money. Anything contained herein to the contrary notwithstanding, any money held by the Trustee in trust for the payment and discharge of the interest on or the principal of or the redemption premiums, if any, on any of the 2026 Bonds Packet Pg. 312 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 44 which remains unclaimed for two (2) years after the date when such payments have become due and payable, if such money was held by the Trustee at such date, or for two (2) years after the date of deposit of such money if deposited with the Trustee after the date when such payments became due and payable, shall be repaid by the Trustee to the City as its absolute property and free from trust, and the Trustee shall thereupon be released and discharged with respect thereto and the Owners shall look only to the City for the making of such payments; provided, that before being required to make any such payment to the City, the Trustee shall mail by first class mail to the Owners of such 2026 Bonds (at the expense of the City) at their addresses as they appear in the registration books maintained by the Trustee pursuant to Section 2.08 a notice that such money remains unclaimed and that, after a date named in such notice, which date shall not be less than thirty (30) days after the date of the mailing of such notice, the balance of such money then unclaimed will be returned to the City.
ARTICLE X
MISCELLANEOUS
SECTION 10.01. Liability of the City Limited to Net Revenues.
Notwithstanding anything contained herein, the City shall not be required to advance any moneys derived from any source of income other than the Net Revenues and moneys in the Electric Revenue Fund for the payment of the principal of or the interest on the 2026 Bonds or for the performance of any agreements or covenants required to be performed by it contained herein. The City may, however, advance moneys for any such purpose so long as such moneys are derived from a source legally available for such purpose and may be legally used by the City for such purpose.
The 2026 Bonds are special obligations of the City payable solely from the Net Revenues and moneys in the Electric Revenue Fund as provided herein, and do not constitute a debt of the City or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limitation or restriction. The general fund of the City is not liable, and neither the faith and credit nor the taxing power of the City is pledged, for the payment of the principal of or the interest on the 2026 Bonds or the performance or satisfaction of any other obligations of the City hereunder.
SECTION 10.02. Benefits of the Indenture Limited to Certain Parties.
Nothing herein, expressed or implied, is intended to give to any person other than the City, the Trustee and the Owners any right or remedy under or by reason hereof. Any agreements, conditions, covenants or terms hereof required to be observed or performed by and on behalf of the City or any officer or employee thereof shall be for the sole and exclusive benefit of the Trustee and the Owners.
SECTION 10.03. Successor Is Deemed Included in All References to Predecessor. Whenever herein either the City or any officer or employee thereof is named or referred to, such reference shall be deemed to include the successor to the powers, duties and functions, with respect to the management, administration and control of the Electric System, that are presently vested in the City or such officer or employee, and all the agreements, conditions, covenants and terms contained herein required to be observed or performed by or on behalf of the Packet Pg. 313 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 45 City or any officer or employee thereof shall bind and inure to the benefit of the respective successors thereof whether so expressed or not.
SECTION 10.04. Execution of Documents by Owners. Any request, declaration or other instrument which the Indenture may require or permit to be executed by Owners may be in one or more instruments of similar tenor and shall be executed by Owners in person or by their attorneys appointed in writing.
Except as otherwise herein expressly provided, the fact and date of the execution by any Owner or his attorney of such request, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state, territory or commonwealth in which he purports to act that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer.
Any request, declaration or other instrument or writing of the Owner of any 2026 Bond shall bind all future Owners of such 2026 Bond in respect of anything done or suffered to be done by the City in good faith and in accordance therewith.
SECTION 10.05. Waiver of Personal Liability. No member of the City Council or officer or employee of the City shall be individually or personally liable for the payment of the interest on or the principal of or the redemption premiums, if any, on the 2026 Bonds; but nothing contained herein shall relieve any member of the City Council or officer or employee of the City from the performance of any official duty provided by law or provided herein.
SECTION 10.06. Acquisition of 2026 Bonds by the City. All 2026 Bonds acquired by the City, whether by purchase or gift or otherwise, shall be surrendered to the Trustee for cancellation and destruction.
SECTION 10.07. Content of Certificates and Reports. Every certificate or report with respect to compliance with an agreement, condition, covenant or term contained herein shall include (a) a statement that the person or persons making or giving such certificate or report have read such agreement, condition, covenant or term and the definitions herein relating thereto; (b) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or report are based; (c) a statement that, in the opinion of the signers, they have made or caused to be made such examination or investigation as is necessary to enable them to express an informed opinion as to whether or not such agreement, condition, covenant or term has been complied with; and (d) a statement as to whether, in the opinion of the signers, such agreement, condition, covenant or term has been complied with.
Any such certificate made or given by an officer of the City may be based, insofar as it relates to legal matters, upon a certificate or opinion of or representation by counsel unless such officer knows that the certificate or opinion or representation with respect to the matters upon which his certificate may be based, as aforesaid, are erroneous, or in the exercise of reasonable care should have known that the same were erroneous. Any such certificate or opinion or Packet Pg. 314 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 46 representation made or given by counsel may be based, insofar as it relates to factual matters information with respect to which is in the possession of the City, upon the opinion of or representation by an officer or officers of the City unless such counsel knows that the opinion or representation with respect to the matters upon which his opinion or representation may be based, as aforesaid, are erroneous, or in exercise of reasonable care should have known that the same were erroneous.
SECTION 10.08. Notice to Owners and Securities Depositories. Any notice required to be given by mail to any Owners or to any securities depositories shall be given by mailing a copy of such notice, first class postage prepaid, or by electronic means of communication, to such Owners at their addresses appearing in the registration books required to be kept by the Trustee pursuant to the provisions of Section 2.08 or to such securities depositories not less than twenty (20) days nor more than sixty (60) days prior to the event concerning which notice thereof is required to be given; provided, that neither failure to receive any such notice nor any immaterial defect contained therein shall affect the sufficiency or validity of the proceedings taken in connection with the action or the event concerning which such notice was given.
SECTION 10.09. Maintenance of Funds. Any fund required hereby to be established and maintained by the City or the Trustee may be established and maintained in the accounting records of the City or the Trustee either as an account or fund, and may, for the purposes of such records, any audits thereof and any reports or statements with respect thereto, be treated either as an account or as a fund; but all such records with respect to all such funds shall at all times be maintained in accordance with sound accounting practices and with due regard for the protection of the security of the 2026 Bonds and the rights of the Owners.
SECTION 10.10. Business Days. When any action is provided for herein to be done on a day named or within a specified time period, and the day or the last day of the period falls on a day that is not a Business Day, such action may be performed on the next ensuing Business Day with the same effect as though performed on the appointed day or within the specified period.
SECTION 10.11. Article and Section Headings, Gender and References. The headings or titles of the several articles and sections hereof (and in the table of contents appended hereto) shall be solely for convenience of reference and shall not affect the meaning, construction or effect hereof, and words of any gender shall be deemed and construed to include all genders, and all references herein to “Articles,” “Sections” and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof; and the words “hereby,” “herein,” “hereto,” “herewith,” “hereunder” and other words of similar import refer to the Indenture as a whole and not to any particular article, section, subdivision or clause hereof.
SECTION 10.12. Governing Law. The Indenture shall be governed and construed in accordance with the Law and the laws of the State of California.
SECTION 10.13. Notices. Whenever any notice is required to be given to the City or the Trustee hereunder, such notice shall be mailed, first class mail, postage prepaid to the following parties at the following addresses:
Packet Pg. 315 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) 47 If to the City:
City of Redding
777 Cypress Avenue
Redding, CA 96001
Attention: Financial and Business Services/CFO
If to the Trustee:
U.S. Bank Trust Company, National Association
101 N. 1st Ave., Suite 1600
Phoenix, AZ 85003
Attention:
Unless otherwise requested by the City or the Trustee, any notice required to be given hereunder may be given through means of telecopy, telegraph, telegram, telex, facsimile transmission, e-mail or other similar electronic means of communication confirmed by writing or written transmission.
SECTION 10.14. Partial Invalidity. If any one or more of the agreements, conditions, covenants or terms or portions thereof provided herein to be observed or performed on the part of the City or of the Trustee should be contrary to law, then such agreement or agreements, such condition or conditions, such covenant or covenants, such term or terms or such portions thereof shall be null and void and shall be deemed separable from the remaining agreements, conditions, covenants and terms or portions thereof and shall in no way affect the validity hereof or of the 2026 Bonds, and the Owners shall retain all the rights and benefits accorded to them under the Law or any other applicable provisions of law. The City hereby declares that it would have executed the Indenture and each and every other section, paragraph, subdivision, sentence, clause and phrase hereof and would have authorized the issuance of the 2026 Bonds pursuant hereto irrespective of the fact that any one or more sections, paragraphs, subdivisions, sentences, clauses or phrases of the Indenture or the application thereof to any person or circumstance may be held to be unconstitutional, unenforceable or invalid.
SECTION 10.15. Execution in Several Counterparts. The Indenture may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts, or as many of them as the City and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.
SECTION 10.16. Transaction by Electronic Means. Each of the parties hereto agrees that the transaction consisting of this Indenture may be conducted by electronic means. Each party agrees, and acknowledges that it is such party’s intent, that if such party signs this Indenture using an electronic signature, it is signing, adopting, and accepting this Indenture and that signing this agreement using an electronic signature is the legal equivalent of having placed its handwritten signature on this Indenture on paper. Each party acknowledges that it is being provided with an electronic or paper copy of this Indenture in a usable format.
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IN WITNESS WHEREOF, the City of Redding has caused the Indenture to be executed in its name and on its behalf by the City Manager and U.S. Bank Trust Company, National Association, as Trustee, in token of its acceptance of the trusts created hereunder, has caused the Indenture to be executed in its corporate name by its duly authorized officer, all as of the date and year first above written.
CITY OF REDDING
By ____________________________________
City Manager
U.S. BANK TRUST COMPANY, NATIONAL
ASSOCIATION,
as Trustee
By ________________________________
Authorized Officer
Packet Pg. 318 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) A-1
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EXHIBIT A
[FORM OF 2026 BONDS]
No. $
CITY OF REDDING
ELECTRIC SYSTEM REFUNDING REVENUE BOND,
SERIES 2026
Interest Rate Maturity Date Bond Date CUSIP
_____% June 1, _____ [Closing Date], 2026 __________
REGISTERED OWNER: Cede & Co.
PRINCIPAL AMOUNT: ____________________ DOLLARS
The City of Redding, a municipal corporation duly organized and existing under and by virtue of the laws of the State of California (the “City”), for value received hereby promises to pay (but only from the Revenues and the other funds hereinafter referred to) to the registered owner set forth above on the maturity date set forth above the principal amount set forth above (subject to any right of prior redemption hereinafter provided for), together with interest thereon computed on the basis of a 360-day year of twelve (12) 30-day calendar months from the interest payment date next preceding the date of authentication of this 2026 Bond (unless this 2026 Bond is authenticated on a day during the period from the day prior to a Record Date (as that term is hereinafter defined) for an interest payment date to such interest payment date, both dates inclusive, in which event it shall bear interest from such interest payment date, or unless it is authenticated on a day on or before the Record Date for the first interest payment date, in which event it shall bear interest from [Closing Date], 2026) until the principal hereof shall have been paid, at the interest rate per annum set forth above, payable on [December 1, 2026], and semiannually thereafter on December 1 and June 1 in each year. The interest on this 2026 Bond due on or before the maturity or prior redemption hereof shall be payable only to the person whose name appears in the registration books required to be kept by U.S. Bank Trust Company, National Association (the “Trustee”) at its Principal Corporate Trust Office (as that term is defined in the Indenture hereinafter referred to, and herein the “Principal Corporate Trust Office”) as the registered owner hereof at the close of business as of the fifteenth (15th) day of the month next preceding each interest payment date (each, a “Record Date”), with such interest to be paid by check mailed by first class mail on each interest payment date to such registered owner at his address as it appears on such books, except that in the case of a registered owner of one million dollars ($1,000,000) or more in aggregate principal amount of 2026 Bonds then outstanding, payment shall be made at such owner’s option by wire transfer on each interest payment date of immediately available funds to an account in a bank or trust company or savings bank that is a member of the Federal Reserve System and that is located in the United States of America according to written instructions given by such owner to the Trustee by the applicable Record Date. The principal of and redemption premium, if any, on this 2026 Bond shall be payable only Packet Pg. 319 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) A-2
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to the person whose name appears in such registration books as the registered owner hereof, such principal and redemption premium, if any, to be paid upon surrender of this 2026 Bond to the Trustee at its Principal Corporate Trust Office at maturity or upon prior redemption. The interest on and principal of and redemption premium, if any, on this 2026 Bond are payable in lawful money of the United States of America.
This 2026 Bond is one of a duly authorized issue of bonds of the City in the aggregate principal amount of [____________dollars] ($[Series 2026 Par]) designated the “City of Redding Electric System Refunding Revenue Bonds, Series 2026” (the “2026 Bonds”) authorized by the City Council of the City and issued by the City to provide funds to the City which will be sufficient to provide for the payment and prepayment of [a portion of] the City’s outstanding Prior Installment Payments relating to the Prior Bonds executed and delivered to finance the acquisition and construction of facilities for the generation, transmission and distribution of electricity, which 2026 Bonds are issued under and pursuant to Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (collectively, the “Law”), and under and pursuant to the provisions of an Indenture executed and entered into as of July 1, 2026 (the “Indenture”) by and between the City and the Trustee, all of like tenor and date (except for such variations, if any, as may be required to designate varying numbers, denominations, maturities, interest rates or redemption provisions). All the 2026 Bonds are equally and ratably secured in accordance with the terms and conditions of the Indenture (copies of which are on file at the office of the City Clerk and at the Principal Corporate Trust Office of the Trustee), and reference is hereby made to the Law and to the Indenture and any and all amendments thereof and supplements thereto for a description of the terms on which the 2026 Bonds are issued and for the rights of the registered owners of the 2026 Bonds; and all the terms of the Law and the Indenture are hereby incorporated herein and constitute a contract between the City and the registered owner from time to time of this 2026 Bond, to all the provisions of which the registered owner of this 2026 Bond, by his acceptance hereof, agrees and consents; and each registered owner hereof shall have recourse to all the provisions of the Law and the Indenture and shall be bound by all the terms and conditions thereof.
The 2026 Bonds are subject to redemption prior to maturity as described in the Indenture.
Notice of redemption of any 2026 Bonds shall be mailed by first class mail by the Trustee, not less than twenty (20) nor more than sixty (60) days prior to the redemption date, to (i) the respective registered owners of the 2026 Bonds designated for redemption at their addresses appearing on the registration books kept by the Trustee pursuant to the Indenture as the registered owners thereof, and (ii) to those securities depositories selected by the City in accordance with the Indenture and designated in writing to the Trustee. Each such notice shall state that on such redemption date there will become due and payable on each of the 2026 Bonds to be redeemed the redemption price thereof and, in the case of a 2026 Bond to be redeemed in part only, the specified portion of the principal amount thereof to be redeemed, and that from and after such redemption date interest on such 2026 Bonds or such portions thereof shall cease to accrue, and each such notice shall require that such 2026 Bonds be then surrendered at the Principal Corporate Trust Office of the Trustee for payment of the redemption price thereof or of such portion thereof; Packet Pg. 320 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) A-3
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provided, that neither failure to receive any such notice nor any immaterial defect contained therein shall invalidate any of the proceedings taken in connection with any such redemption.
THE 2026 BONDS ARE SPECIAL OBLIGATIONS OF THE CITY PAYABLE
SOLELY FROM THE NET REVENUES AND MONEYS IN THE ELECTRIC REVENUE
FUND AS PROVIDED IN THE INDENTURE AND DO NOT CONSTITUTE A DEBT OF THE
CITY OR OF THE STATE OF CALIFORNIA OR OF ANY POLITICAL SUBDIVISION
THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. THE GENERAL FUND OF THE CITY IS NOT LIABLE
AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY IS PLEDGED FOR THE PAYMENT OF THE PRINCIPAL OF THE 2026 BONDS OR THE INTEREST ON THE 2026 BONDS OR THE PERFORMANCE OR SATISFACTION OF ANY OTHER OBLIGATION OF THE CITY UNDER THE INDENTURE.
The City has covenanted and warranted that, for the payment of the interest on and principal of and redemption premium, if any, on this 2026 Bond and all such existing and additional leases and installment sale agreements and all such additional revenue bonds when due, there has been created and will be maintained by the Electric Revenue Fund (as that term is defined in the Indenture) into which all Revenues shall be deposited, and as an irrevocable charge the City has allocated the Revenues to the payment of the interest on and principal of and redemption premiums, if any, for the 2026 Bonds and all such existing and additional leases and installment sale agreements and all such additional revenue bonds, and the City will pay promptly when due the interest on and principal of and redemption premium, if any, on this 2026 Bond and other bonds of this issue and all such existing and additional leases and installment sale agreements and all such additional revenue bonds out of the Revenues and such other funds, all in accordance with the terms and provisions set forth in the Indenture.
If an Event of Default (as that term is defined in the Indenture) shall occur, the principal of all 2026 Bonds may be declared due and payable upon the conditions, in the manner and with the effect provided in the Indenture; provided, that the Indenture provides that in certain events such declaration and its consequences may be rescinded by the registered owners of at least a majority in aggregate principal amount of the 2026 Bonds then outstanding.
The 2026 Bonds are issuable in the form of fully registered bonds in denominations of five thousand dollars ($5,000) or any integral multiple of five thousand dollars ($5,000) (not exceeding the principal amount of 2026 Bonds maturing at any one time). The registered owner of any 2026 Bond or 2026 Bonds may surrender the same (together with a written instrument of exchange satisfactory to the Trustee duly executed by the registered owner or his duly authorized attorney) in exchange for an equal aggregate principal amount of 2026 Bonds of the same maturity date of authorized denominations in the same aggregate principal amount, subject to the conditions and upon payment of the charges provided in the Indenture.
The registration of this 2026 Bond is transferable on the registration books kept by the Trustee by the registered owner hereof or by his duly authorized attorney upon surrender of this 2026 Bond, together with a written instrument of transfer satisfactory to the Trustee duly Packet Pg. 321 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) A-4
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executed by the registered owner or his duly authorized attorney, and thereupon a new 2026 Bond or 2026 Bonds of the same maturity date of authorized denominations in the same aggregate principal amount will be issued to the transferee in exchange therefor in the manner, subject to the conditions and terms and upon payment of the charges provided in the Indenture. The City and the Trustee may deem and treat the person in whose name this 2026 Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the interest hereon and principal hereof and redemption premium, if any, hereon and for all other purposes.
The rights and obligations of the City and of the registered owners of the 2026 Bonds may be amended or supplemented at any time in the manner, to the extent and upon the terms provided in the Indenture, and in certain circumstances without the consent of such registered owners, but no such amendment or supplement shall (1) extend the maturity of this 2026 Bond, or reduce the interest rate hereon or otherwise alter or impair the obligation of the City to pay the interest hereon or principal hereof or any redemption premium hereon at the time and place and at the rate and in the currency and from the funds provided in the Indenture without the express written consent of the registered owner of this 2026 Bond, or (2) reduce the percentage of 2026 Bonds required for the written consent to any amendment of or supplement to the Indenture, or (3) modify any rights or obligations of the Trustee without its prior written assent thereto; all as more fully set forth in the Indenture.
This 2026 Bond shall not be entitled to any benefits under the Indenture or become valid or obligatory for any purpose until the certificate of authentication hereon endorsed shall have been manually signed by an authorized signatory of the Trustee.
Packet Pg. 322 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) A-5
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It is hereby certified that all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in the issuance of this 2026 Bond do exist, have happened and have been performed in due time, form and manner as required by law and that the amount of this 2026 Bond, together with all other obligations of the City, does not exceed any limit prescribed by the laws of the State of California and is not in excess of the principal amount of the 2026 Bonds permitted to be issued under the Indenture.
IN WITNESS WHEREOF, the City of Redding has caused this 2026 Bond to be executed in its name and on its behalf by the manual or facsimile signature of the Mayor of the City and countersigned by the manual or facsimile signature of the City Clerk, and has caused this 2026 Bond to be dated [Closing Date], 2026.
CITY OF REDDING
By ______________________________________
Mayor
Countersigned:
____________________________________
City Clerk
Packet Pg. 323 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) A-6
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[FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION
TO APPEAR ON 2026 BONDS]
This is one of the 2026 Bonds described in the within-mentioned Indenture which has been authenticated on [Closing Date], 2026.
U.S. BANK TRUST COMPANY, NATIONAL
ASSOCIATION, as Trustee
By ______________________________________
Authorized Signatory
[FORM OF ASSIGNMENT TO APPEAR ON 2026 BONDS]
For value received the undersigned do(es) hereby sell, assign and transfer unto ____________________ the within 2026 Bond and do(es) hereby irrevocably constitute and appoint ____________________ attorney to transfer the same on the bond register of the Trustee, with full power of substitution in the premises.
__________________________________________
Dated: ____________________
SIGNATURE GUARANTEED BY:
___________________________________
NOTE: The signature(s) to this Assignment must correspond with the name(s) as written on the face of the within 2026 Bond in every particular, without alteration or enlargement or any change whatsoever, and the signature(s) must be guaranteed by an eligible guarantor institution.
Social Security Number, Taxpayer Identification Number or other identifying number of Assignee:
___________________________________
[DTC LEGEND TO APPEAR ON 2026 BONDS]
Unless this 2026 Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the City or the Trustee for registration of transfer, exchange, or payment, and any 2026 Bond issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE Packet Pg. 324 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) A-7
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OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof Cede & Co., has an interest herein.
Packet Pg. 325 Attachment: Indenture (9.5(b)--Consider Authorization of Bond Refunding 2015A) DRAFT 5/18/26
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DIRECTION TO MAIL CONDITIONAL NOTICE OF REDEMPTION
This DIRECTION TO MAIL CONDITIONAL NOTICE OF REDEMPTION, dated June __, 2026,
WITNESSETH:
WHEREAS, the City of Redding (the “City”) and the Redding Joint Powers Financing Authority (the “Authority”) have entered into a 2015 Installment Sale Agreement, dated as of December 1, 2015 (the “Installment Sale Agreement”); and WHEREAS, the Authority and U.S. Bank National Association, as Trustee, have entered into a Trust Agreement, dated as of December 1, 2015 (the “Trust Agreement”), pursuant to which the Authority has issued its Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2015 Series A (the “Bonds”), $26,155,000 aggregate principal amount of which remains outstanding; and
WHEREAS, U.S. Bank Trust Company, National Association (the “Trustee”), is the successor trustee to U.S. Bank National Association under the Trust Agreement; and WHEREAS, the City has determined to prepay, pursuant to Section 3.03(a) of the Installment Sale Agreement, all of the unpaid 2015 Installment Sale Payments (as defined in the Installment Sale Agreement) together with interest thereon on July [8], 2026 (the “Redemption Date”); and
WHEREAS, pursuant to Section 3.03(b) of the Installment Sale Agreement, the Trustee has determined that the written notice of such prepayment set forth herein is a number of days prior to such prepayment acceptable to the Trustee; and WHEEAS, pursuant to Section 2.03 of the Trust Agreement, the proceeds of such prepayment by the City shall be applied to the redemption of the Bonds on the Redemption Date at a price equal to the principal amount thereof plus interest thereon accrued to the Redemption Date; and
WHEREAS, pursuant to Section 2.03 of the Trust Agreement, the Trustee shall mail notice of such redemption to the Holders (as defined in the Trust Agreement) not less than 20 days prior to the Redemption Date; and
WHEREAS, pursuant to Section 2.03 of the Trustee Agreement, the Authority may, at its option, prior to the date fixed for redemption rescind and cancel any notice of redemption.
NOW THEREFORE, in consideration of the premises, the City and the Authority hereby direct the Trustee to mail, on or before June [__], 2026, in accordance with the Trust Agreement, notice of the redemption of the Bonds in whole on the Redemption Date and to state in such notice that such redemption shall be conditioned upon the successful issuance by the City, on or prior to the Redemption Date, of its City of Redding Electric System Refunding Revenue Bonds, Series 2026, in a principal amount sufficient to provide funds sufficient to pay the redemption Packet Pg. 326 Attachment: Direction to Mail Conditional Notice of Redemption (9.5(b)--Consider Authorization of Bond Refunding 2015A) 2 4154-1804-4261.1
price of the Bonds on the Redemption Date and that the Authority may, at its option, prior to the Redemption Date, rescind and cancel such notice of redemption.
CITY OF REDDING
By:
City Manager
REDDING JOINT POWERS FINANCING
AUTHORITY
By:
Executive Director
Acknowledged and Agreed:
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
as Trustee
By:
Authorized Officer
Packet Pg. 327 Attachment: Direction to Mail Conditional Notice of Redemption (9.5(b)--Consider Authorization of Bond Refunding 2015A) DRAFT 5/18/26
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DIRECTION TO REDEEM BONDS
This DIRECTION TO REDEEM BONDS, dated July [8], 2026,
WITNESSETH:
WHEREAS, the City of Redding (the “City”) and the Redding Joint Powers Financing Authority (the “Authority”) have entered into a 2015 Installment Sale Agreement, dated as of December 1, 2015 (the “Installment Sale Agreement”); and WHEREAS, the Authority and U.S. Bank National Association, as Trustee, have entered into a Trust Agreement, dated as of December 1, 2015 (the “Trust Agreement”), pursuant to which the Authority has issued its Redding Joint Powers Financing Authority Electric System Revenue Bonds, 2015 Series A (the “Bonds”), $26,155,000 aggregate principal amount of which remains outstanding; and
WHEREAS, U.S. Bank Trust Company, National Association (the “Trustee”), is the successor trustee to U.S. Bank National Association under the Trust Agreement; and WHEREAS, the City has determined to prepay, pursuant to Section 3.03(a) of the Installment Sale Agreement, all of the unpaid 2015 Installment Sale Payments (as defined in the Installment Sale Agreement) together with interest thereon on the date hereof and has provided the Trustee written notice of such prepayment; and
WHEREAS, pursuant to Section 2.03 of the Trust Agreement, the proceeds of such prepayment shall be applied to the redemption of the Bonds on the date hereof at a price equal to the principal amount of the Bonds plus interest thereon accrued to the date hereof; and WHEREAS, on June _, 2026, the City and the Authority delivered to the Trustee a Direction to Mail Conditional Notice of Redemption (the “Direction”); and WHEREAS, pursuant to the Direction and Section 2.03 of the Trust Agreement, the Trustee mailed notice of the redemption of the Bonds on the date hereof to the Holders (as defined in the Trust Agreement) on June _, 2026; and
WHEREAS, the Trustee has advised the City and the Authority that on the date hereof the Bonds are outstanding in the aggregate principal amount of $26,155,000 and that the amount of interest on the Bonds accrued to the date hereof and unpaid is $________; and WHEREAS, on the date hereof the City has issued its City of Redding Electric System Refunding Revenue Bonds, Series 2026, pursuant to an Indenture, dated as of July 1, 2026, between the Authority and U.S. Bank Trust Company, National Association, as Trustee (the “2026 Trustee”); and
WHEREAS, all conditions to the redemption of the Bonds on the date hereof have been satisfied.
Packet Pg. 328 Attachment: Direction to Redeem Bonds (9.5(b)--Consider Authorization of Bond Refunding 2015A) 2 4143-0688-1637.1
NOW THEREFORE, in consideration of the premises, the City and the Authority hereby direct the Trustee to accept a transfer from the 2026 Trustee in the amount of $____________ on the date hereof and to apply such amount to the redemption of the Bonds on the date hereof.
CITY OF REDDING
By:
City Manager
REDDING JOINT POWERS FINANCING
AUTHORITY
By:
Executive Director
Acknowledged and Agreed:
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
as Trustee
By:
Authorized Officer
Packet Pg. 329 Attachment: Direction to Redeem Bonds (9.5(b)--Consider Authorization of Bond Refunding 2015A) Norton Rose Fulbright US LLP draft dated 2-3-26
301212959.3 1
$[PAR AMOUNT]
City of Redding
Electric System Refunding Revenue Bonds, Series 2026
___________________________
PURCHASE CONTRACT
___________________________
[____], 2026
City of Redding, California
Redding, California
Ladies and Gentlemen:
The undersigned, J.P. Morgan Securities LLC (the “Underwriter”), hereby offers to enter into this Purchase Contract (the “Purchase Contract”) with the City of Redding (the “City”), which, upon the acceptance of this offer by the City, will be binding upon the City and the Underwriter. This offer is made subject to written acceptance by the City prior to 11:59 P.M., California time, on the date hereof. If this offer is not so accepted, this offer will be subject to withdrawal by the Underwriter upon notice delivered to the City at any time prior to acceptance by the City. Upon acceptance, this Purchase Contract shall be in full force and effect in accordance with its terms and shall be binding upon the City and the Underwriter. All capitalized terms used herein and not otherwise defined herein shall have the respective meanings ascribed thereto in the Official Statement (as defined herein).
1. Purchase, Sale and Delivery of the Bonds.
(a) Subject to the terms and conditions, and in reliance upon the representations, warranties and agreements set forth herein, the Underwriter hereby agrees to purchase and the City agrees to sell and deliver to the Underwriter all (but not less than all) of the $[PAR AMOUNT] City of Redding Electric System Refunding Revenue Bonds, Series 2026 (the “Bonds”). The Bonds shall be dated the date of delivery thereof and shall mature on such dates and shall bear interest at such rates set forth in Schedule I attached hereto. Interest on the Bonds shall be payable semiannually on June 1 and December 1 of each year, commencing [June 1], 2026. The purchase price for the Bonds shall be $[_____] (consisting of the aggregate principal amount of the Bonds plus $[_____] of [net] original issue premium, less $[_____] of Underwriter’s discount). (b) The Bonds shall be issued pursuant to Articles 10 and 11, Chapter 3, Part 1, Division 2, Title 5 of the Government Code of the State of California, and an Indenture, dated as of [____] 1, 2026 (the “Indenture”), by and between the City and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), substantially in the form previously submitted to the Underwriter with only such changes therein as shall be agreed upon by the City and the Underwriter.
Packet Pg. 330 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
2 The Bonds shall be substantially in the form described in, and shall be issued and secured under the provisions of, the Indenture. The Bonds are payable from, and secured by, a pledge of and lien on Net Revenues of the City’s Electric System and moneys in the City’s Electric Revenue Fund.
The proceeds of the Bonds will be used to (i) refund [a portion/all] of the City’s obligation to make installment sale payments (the “Refunded Obligations”) under the 2015 Installment Sale Agreement, dated as of December 1, 2015, by and between the City and the Redding Joint Powers Financing Authority (the “Authority”), and thereby redeem [a corresponding portion of the/the outstanding] Redding Joint Powers Financing Authority Electric Revenue Bonds, 2015 Series A (the “2015A Bonds”); and (ii) pay costs of issuance of the Bonds.
The City will undertake, pursuant to a Continuing Disclosure Agreement relating to the Bonds (the “Continuing Disclosure Agreement”), to provide certain annual financial information and operating data relating to the Electric System and notices of the occurrence of certain events. A description of this undertaking and the proposed form of Continuing Disclosure Agreement are set forth in the Preliminary Official Statement (as defined herein) and will be set forth in the Official Statement (as defined herein).
The Indenture, the Continuing Disclosure Agreement and this Purchase Contract are herein referred to as the “Financing Documents.”
(c) At 8:00 A.M., California time, on [CLOSING DATE], 2026, or at such other time or on such other date as mutually agreed upon by the City and the Underwriter (such time and date herein referred to as the “Closing Date”), the City will, subject to the terms and conditions hereof, sell and deliver, or cause to be delivered, the Bonds to the Underwriter, in definitive form, duly executed and authenticated, together with the other documents mentioned herein, and subject to the terms and conditions hereof, the Underwriter will accept such delivery and pay the purchase price of the Bonds as set forth in subparagraph (a) above in immediately available funds (such delivery and payment being herein referred to as the “Closing”) to the order of the Trustee. Sale, delivery and payment as aforesaid shall be made at the offices of Orrick, Herrington & Sutcliffe LLP (“Bond Counsel”), San Francisco, California, or such other place as shall have been mutually agreed upon by the City and the Underwriter, except that the Bonds shall be delivered through the Trustee via the F.A.S.T. delivery book-entry system of The Depository Trust Company (“DTC”) in New York, New York, or at such other place as shall have been mutually agreed upon by the City and the Underwriter, in fully registered book-entry eligible form (which may be typewritten) and registered in the name of Cede & Co. as nominee of DTC.
2. Offering; Determination of Issue Price.
(a) The Underwriter agrees to make a bona fide public offering of all of the Bonds at prices not in excess of the initial public offering prices or at yields not lower than the initial public offering yields set forth in the Official Statement. The Underwriter reserves the right to change such initial offering prices or yields from time to time after such offering as they shall deem necessary in connection with the marketing of the Bonds. Except as set forth in subsection (d) below, the Underwriter reserves the right to change such initial offering prices after such offering as they shall deem necessary in connection with the marketing of the Bonds. (b) The Underwriter agrees to assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at Closing an "issue price" or similar certificate, Packet Pg. 331 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
3 together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit D, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the City and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of Bonds. (c) Except as otherwise set forth in Schedule I attached hereto, the City will treat the first price (meaning single) at which 10% of each maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity (if different interest rates apply within a maturity, each separate CUSIP number within that maturity will be subject to the 10% test). At or promptly after the execution of this Purchase Contract, the Underwriter shall report to the City the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the City the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the date of Closing has occurred, until either (i) the Underwriter has sold all Bonds of that maturity or (ii) the 10% test has been satisfied as to the Bonds of that maturity, provided that, the Underwriter’s reporting obligation after the date of Closing may be at reasonable periodic intervals or otherwise upon request of the City or Bond Counsel. For purposes of this Section, if Bonds mature on the same date but have different interest rates, each separate CUSIP number within that maturity will be treated as a separate maturity of the Bonds.
(d) The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Contract at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Schedule I attached hereto, except as otherwise set forth therein. Schedule I also sets forth, as of the date of this Purchase Contract, the maturities, if any, of the Bonds for which the Underwriter represents that (i) the 10% test has been satisfied (assuming orders are confirmed by the end of the day immediately following the day of execution of this Purchase Contract) and (ii) the 10% test has not been satisfied and for which the City and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the City to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
(1) the close of the fifth (5th) business day after the sale date; or (2) the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
The Underwriter will advise the City promptly after the close of the fifth (5th) business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. (e) The Underwriter confirms that:
(i) any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group and each broker-dealer that is a party to such third-party distribution agreement, as applicable:
Packet Pg. 332 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
4 (A) (1) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the date of Closing has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the date of Closing may be at reasonable periodic intervals or otherwise upon request of the Underwriter, and (B) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter,
(B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and
(C) to acknowledge that, unless otherwise advised by the dealer or brokerdealer, the Underwriter shall assume that each order submitted by the dealer or brokerdealer is a sale to the public. (ii) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the date of Closing has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the date of Closing may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires. (f) The City acknowledges that, in making the representations set forth in this section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a thirdparty distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires.
(g) The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section.
Further, for purposes of this section:
(1) “public” means any person other than an underwriter or a related party, Packet Pg. 333 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
5 (2) “underwriter” means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the public);
(3) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (i) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and (4) “sale date” means the date of execution of this Purchase Contract by all parties.
3. Use and Preparation of Official Statement. The City hereby ratifies, confirms and approves of the use and distribution by the Underwriter prior to the date hereof of an official statement in preliminary form dated [______], 2026 relating to the Bonds (which, together with all appendices thereto, is referred to herein as the “Preliminary Official Statement”). The City has deemed final the Preliminary Official Statement as of its date for purposes of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”), except for information permitted to be omitted therefrom by Rule 15c2-12. The City hereby agrees to deliver or cause to be delivered to the Underwriter, within seven (7) business days of the date hereof and at least in sufficient time to accompany any orders or confirmations that request payment from any customer, copies of the final official statement, dated the date hereof (which, together with all information previously permitted to have been omitted by Rule 15c2-12 and any amendments or supplements to such official statement as have been approved by the City and the Underwriter is referred to herein as the “Official Statement”) in sufficient quantity to enable the Underwriter to comply with the rules of the Securities and Exchange Commission and the Municipal Securities Rulemaking Board. The City hereby approves of the use and distribution by the Underwriter of the Official Statement in connection with the offer and sale of the Bonds. At the time of or prior to the Closing Date, the Underwriter shall file a copy of the Official Statement in printed or electronic form with, and as permitted by, the Municipal Securities Rulemaking Board through its Electronic Municipal Market Access System. The Underwriter shall advise the City of the date of such filing.
4. Representations, Warranties and Agreements of the City. The City hereby represents, warrants and agrees with the Underwriter as follows:
(a) The City is a municipal corporation duly organized and existing under and by virtue of the laws of the State of California and has all necessary power and authority to enter into and perform its duties under the Financing Documents and, when executed and delivered by the respective Packet Pg. 334 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
6 parties thereto, the Financing Documents and the Bonds will constitute the legal, valid and binding obligations of the City in accordance with their respective terms. (b) By all necessary official action of the City prior to or concurrently with the acceptance hereof, the City has duly approved the distribution of the Preliminary Official Statement and the execution, delivery and distribution of the Official Statement, and has duly authorized and approved the execution and delivery of, and the performance by the City of the obligations on its part contained in, the Financing Documents and the consummation by it of all other transactions contemplated by the Preliminary Official Statement, the Official Statement and the Financing Documents.
(c) The City is not in breach of or default under any applicable constitutional provision, law or administrative regulation to which it is subject or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or to which the City or any of its property or assets is otherwise subject, and no event has occurred and is continuing which with the passage of time or the giving of notice, or both, would constitute such a default or event of default in any material respect under any such instrument; and the issuance of the Bonds, the delivery of the Preliminary Official Statement and the execution and delivery of the Official Statement and the Financing Documents and compliance with the provisions on the City’s part contained herein and therein, will not in any material respect conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the City under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided in the Indenture. (d) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body, pending or, to the best knowledge of the City after reasonable investigation, threatened against the City in any material respect affecting the existence of the City or the titles of its officers to their respective offices or affecting or seeking to prohibit, restrain or enjoin the issuance, sale or delivery of the Bonds or contesting or affecting, as to the City, the validity or enforceability of the Bonds or the Financing Documents or contesting the powers of the City or its authority to enter into, adopt or perform its obligations under any of the foregoing, or contesting in any way the completeness or accuracy of the Preliminary Official Statement or the Official Statement, or any amendment or supplement thereto, wherein an unfavorable decision, ruling or finding would materially adversely affect the validity or enforceability of the Financing Documents.
(e) All authorizations, approvals, licenses, permits, consents and orders of any governmental authority, legislative body, board, agency or commission having jurisdiction of the matter which are required for the due authorization by, or which would constitute a condition precedent to or the absence of which would materially adversely affect the due performance by, the City of its obligations in connection with the issuance of the Bonds under the Indenture have been duly obtained, except for such approvals, consents and orders as may be required under the Blue Sky or securities laws of any state in connection with the offering and sale of the Bonds; and, except as described in or contemplated by the Preliminary Official Statement and the Official Statement, all authorizations, approvals, licenses, permits, consents and orders of any governmental authority, board, agency or Packet Pg. 335 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
7 commission having jurisdiction of the matter which are required for the due authorization by, or which would constitute a condition precedent to or the absence of which would materially adversely affect the due performance by, the City of its obligations under the Financing Documents have been duly obtained.
(f) The City will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order (i) to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate and (ii) to determine the eligibility of the Bonds for investment under the laws of such states and other jurisdictions, and will use its best efforts to continue such qualification in effect so long as required for distribution of the Bonds; provided, however, that in no event shall the City be required to take any action which would subject it to service of process in any jurisdiction in which it is not now so subject. (g) As of its date and the date hereof, the Preliminary Official Statement (excluding information concerning DTC and the book-entry system as to which no representation is made) did not, except as to the information permitted to be omitted by Rule 15c2-12, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (h) As of the date thereof and at all times subsequent thereto to and including the date which is 25 days following the End of the Underwriting Period (as such term is hereinafter defined) for the Bonds, the Official Statement (excluding information concerning DTC and the bookentry system and the information under the caption “UNDERWRITING” (collectively, the “Excluded Information”)) as to which no representation is made) did not and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (i) If between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds, an event occurs which might or would cause the information contained in the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the City will notify the Underwriter, and, if in the opinion of the City, the Underwriter or their respective counsel, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the City will forthwith prepare and furnish to the Underwriter (at the expense of the City) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to prospective purchasers, not misleading. For the purposes of this subsection, between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds, the City will furnish such information with respect to itself as the Underwriter may from time to time reasonably request.
(j) If the information contained in the Official Statement is amended or supplemented pursuant to paragraph (i) of this Section 4, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such paragraph) at all times subsequent thereto up to and including the date which is 25 days after the End of the Packet Pg. 336 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
8 Underwriting Period for the Bonds, the portions of the Official Statement so supplemented or amended (other than Excluded Information as to which no representation is made) will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (k) After the Closing Date, the City will not participate in the issuance of any amendment of or supplement to the Official Statement to which, after being furnished with a copy, the Underwriter shall reasonably object in writing.
(l) As used herein and for the purposes of the foregoing, the term “End of the Underwriting Period” for the Bonds shall mean the earlier of (i) the Closing Date unless the City shall have been notified in writing to the contrary by the Underwriter on or prior to the Closing Date, or (ii) the date on which the End of the Underwriting Period for the Bonds has occurred under Rule 15c2-12; provided, however, that the City may treat as the End of the Underwriting Period for the Bonds the date specified as such in a notice from the Underwriter stating the date which is the End of the Underwriting Period.
(m) The City will apply, or cause the application of, the proceeds of the Bonds in accordance with the Indenture.
(n) Any certificate signed by any authorized official of the City, and delivered to the Underwriter in connection with the delivery of the Bonds, shall be deemed a representation and warranty by the City to the Underwriter as to the statements made therein. (o) After the Closing Date, the City will not participate in the issuance of any amendment of or supplement to the Official Statement to which, after being furnished with a copy, the Underwriter shall reasonably object in writing.
(p) Other than as described in the Official Statement, as of the time of acceptance hereof and as of the Closing Date the City does not and will not have outstanding any indebtedness which is secured by a lien on the Net Revenues (as defined in the Official Statement) or moneys in the City's Electric Revenue Fund superior to or on a parity with the lien of the Bonds thereon. (q) Between the date of this Purchase Contract and the Closing Date, the City will not, without the prior written consent of the Underwriter, and except as disclosed in the Preliminary Official Statement and the Official Statement, offer or issue any bonds, notes or other obligations for borrowed money, or incur any material liabilities, direct or contingent, payable from the Net Revenues. (r) Except as disclosed in the Preliminary Official Statement and the Official Statement, the City has not failed to comply in all material respects with the terms of any continuing disclosure obligation under Rule 15c2-12 within the past five years. (s) The financial statements of, and other financial information regarding the Electric System, in the Preliminary Official Statement and the Official Statement fairly present the financial position and results of the Electric System as of the dates and for the periods therein set forth.
5. Conditions to the Obligations of the Underwriter. The Underwriter hereby enters into this Purchase Contract in reliance upon the representations and warranties of the City contained herein and the representations and warranties of the City to be contained in the documents and instruments to Packet Pg. 337 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
9 be delivered on or prior to the Closing Date and upon the performance by the City of its obligations both on and as of the date hereof and as of the Closing Date. Accordingly, the Underwriter’s obligations under this Purchase Contract to purchase, to accept delivery of and to pay for the Bonds shall be subject, at the option of the Underwriter, to the accuracy in all material respects of the representations and warranties of the City contained herein as of the date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of the officers and other officials of the City made in any certificate or other document furnished pursuant to the provisions hereof, to the performance by the City of its obligations to be performed hereunder and under such documents and instruments at or prior to the Closing Date, and also shall be subject to the following additional conditions:
(a) The Underwriter shall receive, within seven (7) business days of the date hereof and at least in sufficient time to accompany any orders or confirmations that request payment from any customer, copies of the Official Statement (including all information previously permitted to have been omitted by Rule 15c2-12 and any amendments or supplements as have been approved by the Underwriter), in such quantity as the Underwriter shall have requested pursuant to Section 2 hereof; (b) The representations and warranties of the City contained herein shall be true and correct on the date hereof and on the Closing Date, as if made on and at the Closing Date; (c) As of the Closing Date, the Financing Documents shall have been duly authorized, executed and delivered by the respective parties thereto, and the Official Statement shall have been duly authorized, executed and delivered by the City, all in substantially the forms heretofore submitted to the Underwriter, with only such changes as shall have been agreed to in writing by the Underwriter, and such Financing Documents shall be in full force and effect and shall not have been amended, modified or supplemented and the Official Statement shall not have been supplemented or amended, except in any such case as may have been agreed to by the Underwriter; and there shall be in full force and effect such resolution or resolutions of the City Council of the City as, in the opinion of Bond Counsel, shall be necessary or appropriate in connection with the transactions contemplated hereby;
(d) Between the date hereof and the Closing Date, the market price or marketability, at the initial public offering prices set forth in the Official Statement, of the Bonds shall not have been materially adversely affected, in the reasonable judgment of the Underwriter (evidenced by a written notice to the City terminating the obligation of the Underwriter to accept delivery of and make any payment for the Bonds), by reason of any of the following:
(1) an amendment to the Constitution of the United States or the State of California shall have been passed or legislation shall have been introduced in or enacted by the Congress of the United States or the legislature of any state having jurisdiction of the subject matter or legislation pending in the Congress of the United States shall have been amended or legislation shall have been recommended to the Congress of the United States or to any state having jurisdiction of the subject matter or otherwise endorsed for passage (by press release, other form of notice or otherwise) by the President of the United States, the Treasury Department of the United States, the Internal Revenue Service or the Chairman or ranking minority member of the Committee on Finance of the United States Senate or the Committee on Ways and Means of the United States House of Representatives, or legislation shall have been proposed for consideration by either such Committee by any member thereof or presented as an option for consideration by either such Committee by the staff of such Committee or by the staff of the Joint Committee on Taxation of the Congress of the Packet Pg. 338 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
10 United States, or legislation shall have been favorably reported for passage to either House of the Congress of the United States by a Committee of such House to which such legislation has been referred for consideration, or a decision shall have been rendered by a court of the United States or of the State of California or the Tax Court of the United States, or a ruling shall have been made or a regulation or temporary regulation shall have been proposed or made or any other release or announcement shall have been made by the Treasury Department of the United States, the Internal Revenue Service or other federal or State of California authority, with respect to federal or State of California taxation upon revenues or other income of the general character to be derived by the City or upon interest received on obligations of the general character of the Bonds which may have the purpose or effect, directly or indirectly, of affecting the tax status of the City, its property or income, its securities (including the Bonds) or the interest thereon, or any tax exemption granted or authorized by State of California legislation;
(2) legislation enacted, introduced in the Congress or recommended for passage by the President of the United States to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under the Securities Act of 1933, as amended, or that the Indenture is not exempt from qualification under the Trust Indenture Act of 1939, as amended;
(3) the outbreak or escalation in military hostilities or declaration by the United States of a national or international emergency or war or other calamity or crisis or the escalation thereof affecting the financial markets of the United States or elsewhere; (4) an order, decree or injunction of any court of competent jurisdiction, or order, ruling, regulation or official statement by the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, issued or made to the effect that the issuance, offering or sale of obligations of the general character of the Bonds, or the issuance, offering or sale of the Bonds, including any or all underlying obligations, as contemplated hereby or by the Preliminary Official Statement and the Official Statement, is or would be in violation of the federal securities laws as amended and then in effect;
(5) the withdrawal or downgrading of any rating of the Bonds or any other outstanding debt of the City’s Electric System by Fitch, Inc. or the rating on the Bonds shall have been placed on “Negative Outlook” by Fitch, Inc.; or
(6) except as disclosed in or contemplated by the Preliminary Official Statement and the Official Statement, any material adverse change in the affairs of the Electric System shall have occurred.
(e) No declaration of a general banking moratorium by federal, New York or California authorities, or the general suspension of trading on any national securities exchange, or a major financial crisis or a material disruption in commercial banking or securities settlement or clearances services shall have occurred.
(f) No event shall occur or be discovered which makes untrue or incorrect in any material respect, as of the time of such event, any statement or information contained in the Preliminary Official Statement or the Official Statement or which is not reflected in the Preliminary Official Statement or the Official Statement but should be reflected therein in order to make the statements Packet Pg. 339 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
11 contained therein not misleading in any material respect and requires an amendment of or supplement to the Official Statement.
(g) No imposition by the New York Stock Exchange or other national securities exchange, or any governmental authority, of any material restrictions not now in force with respect to the Bonds or obligations of the general character of the Bonds or securities generally, or the material increase of any such restrictions now in force, including those relating to the extension of credit by, or the charge to the net capital requirements of, the Underwriter. (h) No decision rendered by a court established under Article III of the Constitution of the United States or by the Tax Court of the United States, or an order, ruling, regulation (final, temporary or proposed) or official statement issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter shall have been made or issued to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under the Securities Act of 1933, as amended, or that the Indenture is not exempt from qualification under the Trust Indenture Act of 1939, as amended.
(i) At or prior to the Closing Date, the Underwriter shall have received the following documents, in each case satisfactory in form and substance to the Underwriter:
(1) The Preliminary Official Statement and the Official Statement and each supplement or amendment, if any, thereto, executed by the City. (2) Copies of each of the Financing Documents, each duly executed and delivered by the respective parties thereto.
(3) The unqualified approving opinion of Bond Counsel, dated the Closing Date and addressed to the City, in substantially the form attached to the Official Statement as Appendix [F] thereto.
(4) The supplemental opinion of Bond Counsel dated the Closing Date and addressed to the Underwriter in substantially the form attached hereto as Exhibit A. (5) The opinion of Stradling Yocca Carlson & Rauth LLP, as disclosure counsel, dated the Closing Date and addressed to the City and the Underwriter in substantially the form attached hereto as Exhibit B.
(6) The opinion of the City Attorney of the City, dated the Closing Date and addressed to the Underwriter, in substantially the form attached hereto as Exhibit C. (7) The opinion of counsel to the Trustee, dated the Closing Date and addressed to the City and the Underwriter, to the effect that (i) the Trustee has duly accepted appointment as Trustee under the Indenture, has duly authorized, executed and delivered the Indenture and the Continuing Disclosure Agreement and duly authenticated and delivered the Bonds on the Closing Date; and (ii) the Indenture and the Continuing Disclosure Agreement constitute the legally valid and binding obligations of the Trustee, enforceable against the Trustee in accordance with their terms, except that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws in effect from time to time affecting the rights of creditors Packet Pg. 340 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
12 generally and except to the extent that the enforceability thereof may be limited by the application of general principles of equity.
(8) The opinion of Norton Rose Fulbright US LLP (“Underwriter’s Counsel”), dated the Closing Date and addressed to the Underwriter, in form and substance satisfactory to the Underwriter.
(9) A certificate or certificates, dated the Closing Date, signed by a duly authorized official of the City satisfactory to the Underwriter, in form and substance satisfactory to the Underwriter, to the effect that (i) the representations and warranties of the City contained in this Purchase Contract and the other Financing Documents are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) there is no action, suit, proceeding, inquiry or investigation pending or, to the best knowledge of such official after reasonable investigation, threatened (a) to restrain or enjoin the execution and delivery of the Financing Documents or the performance of the City’s obligations thereunder, (b) in any way contesting or affecting the validity of the Financing Documents or (c) in any way contesting the existence or powers of the City, nor to the best knowledge of such official after reasonable investigation, is there any basis for any such action, suit, proceeding, inquiry or investigation, wherein an unfavorable decision, ruling or finding would make invalid or materially adversely affect the authorization, execution, delivery or performance by the City of the foregoing; (iii) nothing has come to the City’s attention which would cause the City to believe that the Preliminary Official Statement (excluding information permitted to be omitted therefrom under Rule 15c2-12 and the information concerning DTC and the book-entry system included therein and Appendix [F] thereto), as of its date and as of the date hereof, and the Official Statement (excluding the information concerning DTC and the book-entry system included therein, the information under the caption “UNDERWRITING” and Appendices [E and F] thereto), as of its date and as of the Closing Date, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and (iv) since June 30, 2025, except as referred to in or as contemplated by the Official Statement, with respect to its Electric System, the City has not incurred any financial liabilities, direct or contingent, or entered into any transactions and there has not been any adverse change in the condition, financial or physical, of the Electric System, in any case that would materially and adversely affect the ability of the City to meet its obligations under the Indenture and the Bonds.
(10) A certificate, dated the Closing Date, signed by a duly authorized official of the Trustee, satisfactory in form and substance to the Underwriter, to the effect that: (i) the Trustee is a national banking association organized and existing under and by virtue of the laws of the United States of America, having the full power and being qualified to enter into and perform its duties under the Indenture and the Continuing Disclosure Agreement; (ii) the Trustee is duly authorized to enter into the Indenture and the Continuing Disclosure Agreement and to authenticate and deliver the Bonds to the Underwriter pursuant to the terms of the Indenture; (iii) the execution and delivery of the Indenture and the Continuing Disclosure Agreement and compliance with the provisions on the Trustee’s part contained therein, and the authentication and delivery of the Bonds will not conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Trustee is a party or is otherwise subject (except that no representation, warranty or agreement is made with respect to any federal or state securities or Blue Sky laws or regulations), nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets held by the Trustee Packet Pg. 341 Attachment: Purchase Contract (9.5(b)--Consider Authorization of Bond Refunding 2015A) 301212959.3
13 pursuant to the lien created by the Indenture under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the Indenture; and (iv) there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body, served on, or, to the best knowledge of such officer, threatened against, the Trustee, affecting the existence of the Trustee or the titles of its officers to their respective offices, or in any way contesting or affecting the validity or enforceability of the Indenture and the Continuing Disclosure Agreement against the Trustee, or contesting the power of the Trustee or its authority to enter into, adopt or perform its obligations under the Indenture or the Continuing Disclosure Agreement, wherein an unfavorable decision, ruling or finding would materially adversely affect the validity or enforceability of the Indenture or the Continuing Disclosure Agreement against the Trustee or the authentication and delivery of the Bonds.
(11) A certified copy of the general resolution of the Trustee authorizing the execution and delivery of the Indenture and the Continuing Disclosure Agreement. (12) A certified copy of the resolution of the City authorizing the execution and delivery of the Financing Documents and the Official Statement. (13) Evidence satisfactory to the Underwriter that the rating on the Bonds described in the Official Statement is in full force and effect as of the Closing Date. (14) A copy of the Preliminary Blue Sky Survey with respect to the Bonds, if any, prepared by Underwriter’s Counsel.
(15) A copy of the audited financial statements of the City’s Electric Utility Fund included as Appendix [A] to the Official Statement. (16) Tax certifications by the City in form and substance acceptable to Bond Counsel.
(17) Evidence that a federal tax information form 8038-G has been prepared for filing with respect to the Bonds.
(18) A copy of the Notice of Final Sale required to be delivered to the California Debt and Investment Advisory Commission pursuant to Section 8855 of the California Government Code.
(19) Such additional legal opinions, certificates, proceedings, instruments and other documents as the Underwriter, Underwriter’s Counsel or Bond Counsel may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the representations of the City herein and of the statements and information contained in the Preliminary Official Statement and the Official Statement, and the due performance or satisfaction by the City on or prior to the Closing Date of all agreements then to be performed and all conditions then to be satisfied by the City in connection with the transactions contemplated hereby and by the Preliminary Official Statement and the Official Statement and the Financing Documents.