Redding City Council
October 6, 2026

Agenda
Regular Meeting
Redding City Council
Council Chambers (Doors open 30 minutes prior)
777 Cypress Avenue, Redding, CA
October 6, 2026
6:00 PM

CITY OF REDDING PUBLIC PARTICIPATION
Members of the public are invited to participate in City Council meetings either in person or remotely using the City’s online public comment platform located on the City’s website and instructions are included on the agenda. Meeting agendas and staff reports are available at www.cityofredding.gov and in the Public View binder located on the podium on the north side of the Chambers.

Public comments may be provided on Non-Agendized Public Comment, Consent Calendar, and Regular Agenda items. Speakers may register in advance through the City’s Public Comment Registration Portal or submit a request to speak in person at the meeting. Each speaker is allotted up to a maximum of three minutes.

In-Person Participation
Members of the public attending the meeting in person are given priority during public comment. • Sign in at the digital kiosk located in the lobby of Council Chambers. • Select the item or comment period you wish to speak on. • Please be ready to speak when your name is called.

Remote Participation
Members of the public wishing to speak remotely may register through the City’s Public Comment Registration Portal here (https://publicinput.com/s52444), or listen only by calling into the meeting at (530) 319-5640 meeting code: 5756.
• Registered speakers will receive instructions to join the meeting by phone. • Remote speakers are called after in-person speakers, in the order they registered. • Speakers should register for the specific agenda item or comment period they wish to address.
• Instructions for joining the remote participation system are available on the City’s website.

To help ensure a smooth and orderly meeting experience, remote participants are asked to follow these guidelines:
• Call in on time and remain connected until your item is reached. • Use the same phone number you registered with, so you appear in the speaker queue. • Keep background noise to a minimum while listening to the meeting. • When your line is unmuted, begin speaking promptly.
• State your name clearly for the record.
• Avoid speaking over other participants; wait until you are called on. • If disconnected, reconnect as quickly as possible using the same number and Meeting Code.

The City Clerk’s Office will facilitate public comments to ensure equal opportunity for participation while maintaining the orderly conduct of the meeting.

Redding City Council October 6, 2026

If Remote Access Service Disruption Impedes Remote Participation If remote access service is disrupted during a public open meeting which hinders remote participation then the City Clerk shall make good faith efforts to restore the remote access services which may include: (1) troubleshooting platform or teleconferencing software: (2) resetting or replacing audio and/or audiovisual equipment: (3) attempting alternative connection methods; (4) contacting necessary staff support or service providers; and/or (5) switching to back-up equipment or platforms, if available. The City Clerk shall make a record and enter into the meeting minutes the disruption and restoration efforts undertaken.

If following recess of the meeting, the remote access service has not been restored within one (1) hour, then the City Council may reconvene the meeting provided that it adopts, by rollcall vote, a finding that it made good faith efforts to restore the Remote Access Services and that the public interest in continuing the meeting outweighs the public interest in remote participation.

Public Comment Timing
• The City Council will allocate up to three minutes per speaker for each agenda item. • The Mayor determines the speaking order for non-agendized public comment. • For non-agendized matters, up to 30 minutes total is provided at the beginning of the meeting.
• If all speakers cannot be heard within the 30-minute period whether submitted in person through the kiosk or remotely through the registration portal the remaining speakers will be called at the end of the open session agenda.

Need Assistance?
For questions or technical assistance, please contact us at [email protected].

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

2. PRESENTATIONS
2A. Presentation by Shasta County Assessor-Recorder Leslie Morgan regarding the Office of Shasta County Assessor-Recorder’s Annual Report for 2026-27.

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

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

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

The Mayor will determine the order of the speakers. If 30 minutes is not adequate to accommodate all of the individuals who have submitted their name through the electronic kiosk or by two-way audio remotely, the Council will trail this item to the end of the open session agenda. The remaining speakers will address the City Council at that time.

Redding City Council October 6, 2026

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 or register online for remote participation before the Consent Calendar is considered. It shall be the prerogative of any Council Member, before the Consent Calendar is acted upon, to: (1) comment on an item; (2) respond to any public comment on an item; (3) request the record reflect an abstention or nay vote on an item; or (4) remove an item and place it on the Regular portion of the agenda for delivery of a staff report and/or an extended discussion or deliberation.
4(a). Approve City Council Minutes: Special Meeting – Closed Session of September 15, 2026; Regular Meeting of September 15, 2026; and Special Meeting – Closed Session of September 21, 2026.

4.6(a). Authorize and approve the following:
(1) Approve the City of Redding as an applicant for up to $1.2 million from the Integrated Climate Adaptation and Resilience Program’s Extreme Heat & Community Resilience Grant for infrastructure improvements to the Caldwell Recreation Center and the Redding Sports Park; and (2) Authorize the City Manager, or designee, to execute all documents necessary to apply for the grant.

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(c). Authorize and approve the following related to the City of Redding Pump House 1 Replacement Project:
(1) Authorize staff to negotiate and the City Manager, or designee, to execute a Credit Transfer Agreement with the National Fish and Wildlife Foundation in an amount not-to-exceed $740,000;
(2) Authorize staff to negotiate and the City Manager, or designee, to execute an agreement for the purchase of bank credits with the Butte Sink Mitigation Bank and/or the Hamilton Bend Mitigation Bank in an amount not-to-exceed $480,000; and
(3) Adopt Resolution approving and adopting the 58th Amendment to City Budget Resolution No. 2025-049 appropriating $1,220,000 for the Pump Station 1 Replacement Project.

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

Redding City Council October 6, 2026

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

Public Works

6.1. Public Hearing to consider Ordinance amending Title 14 (Utilities) to define Nonfunctional Turf pursuant to Assembly Bill 1572.

Recommendation:

Conduct a Public Hearing and, upon conclusion:
(1) Introduce Ordinance amending Redding Municipal Code Title 14 (Utilities), Chapter 14.08 (Water) by adopting Section 14.08.005 (Definitions) and Section 14.08.390 (Nonfunctional Turf), for first reading by title only, and waive the full reading;
(2) Direct the City Attorney to prepare a summary ordinance, and authorize the City Clerk to publish the summary ordinance according to law; and (3) Find that this action is exempt from environmental review under the California Environmental Quality Act, pursuant to Section 15061(b)(3) – Common Sense Exemption.

9. REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES
Electric

9.5(a). Consider Redding Electric Utility's Fiscal Year 2025-26 Financial Report and Industry Activities Update.

Recommendation:

Accept City of Redding Electric Utility’s Fiscal Year 2025-26 Financial Report and Industry Activities Update.

9.5(b). Consider the City of Redding Utility Customer Services Call Center Report.

Recommendation:

Accept an informational report regarding the evaluation of future operating models for the City of Redding Utility Customer Services call center; and provide direction to staff regarding whether to: (a) further develop a City-operated model; (b) pursue a Request for Proposal for outsourced services; or (c) continue the current outsourced model.

Redding City Council October 6, 2026

Finance

9.10(a). Consider the City of Redding's Year-End Budget Review and associated Resolution for Fiscal Year Ended 2026.

Recommendation:

Authorize and approve the following:
(1) Accept the Fiscal Year 2026 Year-End Budget Report; and (2) Adopt Resolution approving and adopting the 61st Amendment to City Budget Resolution No. 2025-049 increasing Fiscal Year 2026 appropriations by $4,496,560.

9.10(b). Consider mid-cycle presentation of the City of Redding’s General Fund TenYear Financial Plan and policy direction.

Recommendation:

Authorize and approve the following:
(1) Accept the baseline City of Redding General Fund ten-year plan (Plan); and (2) Adopt the recommended transition plan, potentially including revisions per City Council direction, to incorporate financial stabilization measures and commence restoring reserves; and
(3) Direct the City Manager to return at the next regularly scheduled City Council Meeting scheduled to be held on October 20, 2026, with the necessary budgetary amendments associated with the transition plan; or
(4) Provide alternative direction to staff.

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
Redding City Council October 6, 2026

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
Presentation by Shasta County Assessor-Recorder Leslie Morgan regarding the Office of Shasta County Assessor-Recorder’s Annual Report for 2026-27.

Attachments
Annual Report - 2026-2027
MEETING DATE: October 6, 2026
ITEM NO. 2A
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 2A--Presentation by Shasta County Assessor-Recorder, Leslie Morgan Michael Webb, Interim City
Manager/Public Works
Director
Packet Pg. 7

ANNUAL REPORT
2026 – 2027

OFFICE OF

SHASTA COUNTY

ASSESSOR-RECORDER

LESLIE MORGAN

SHASTA COUNTY ASSESSOR-RECORDER
Packet Pg. 8
Attachment: Annual Report - 2026-2027 (2A--Presentation by Shasta County Assessor-Recorder Leslie Morgan) What’s inside the Annual Report?
The Assessor-Recorder’s Annual Report offers a detailed statistical analysis of the Assessor’s local assessment roll which is the official list of all the assessed property within the County as of the January 1st Lien Date, and a review of the Recorder’s statistics for documents recorded and funds collected for various local agencies and the State of California.

TABLE OF CONTENTS
Contents
MESSAGE FROM THE ASSESSOR-RECORDER ................................................................................. 1 RESPONSIBILITIES OF THE ASSESSOR-RECORDER ....................................................................... 2 ASSESSOR-RECORDER ORGAZATIONAL CHART ...................................................................... 3 SHASTA COUNTY ASSESSOR TAXABLE VALUES ....................................................................... 4 LOCAL ASSESSMENT ROLL CHANGE .......................................................................................................................4 BY CITY / UNINCORPORATED .................................................................................................................................5 BY SCHOOL DISTRICT ..............................................................................................................................................7 PROPERTY TAX EXEMPTIONS..................................................................................................................................8 SHASTA COUNTY ASSESSOR ASSESSMENT HISTORY .............................................................. 9 PROPOSITION 13 - ASSESSMENT ROLL GROWTH...................................................................................................9 SUPPLEMENTAL ASSESSMENTS........................................................................................................................... 10 SECTION 51 VALUE REVIEWS (PROP 8)................................................................................................................ 11 OTHER ASSESSMENTS.......................................................................................................................................... 12 ASSESSMENT TEAM............................................................................................................................................. 13 SHASTA COUNTY ASSESSOR PERFORMANCE MEASUREMENTS ....................................... 14 COST PER ASSESSMENT....................................................................................................................................... 14 ASSESSMENT APPEALS ........................................................................................................................................ 15 SHASTA COUNTY PROPERTY TAXES ........................................................................................... 16 General Revenue By Source / Percentage of Each Tax Dollar............................................................................. 16 CALIFORNIA STATE (BOE) ROLL vs LOCAL ASSESSOR’S ROLL............................................................................... 17 SHASTA COUNTY RECORDER ........................................................................................................ 18 DOCUMENTS RECORDED AND FILED................................................................................................................... 18 OTHER AGENCY FEES ........................................................................................................................................... 19 Documentary Transfer Tax (DTT) .................................................................................................................... 19 Building Homes & Jobs Act (SB2)..................................................................................................................... 19 District Attorney Fraud Fee ............................................................................................................................. 19 HISTORICAL DOCUMENT STATISTICS................................................................................................................... 20 VITAL RECORDS.................................................................................................................................................... 21 RESTRICTIVE COVENANT MODIFICATIONS (AB1466).......................................................................................... 21 Packet Pg. 9
Attachment: Annual Report - 2026-2027 (2A--Presentation by Shasta County Assessor-Recorder Leslie Morgan) Home 1 2025-2026 Annual Report

SHASTA COUNTY OFFICE OF THE ASSESSOR-RECORDER
LESLIE MORGAN, ASSESSOR-RECORDER 1450 Court Street, Ste 208-A Intra-County toll free: 1-800-479-8009 Redding, CA 96001-1667 County website: www.shastacounty.gov Voice - (530) 225-3600 Calif. Relay Service @711 or 800-735-2922 Fax - (530) 225-5673 July 20, 2026

MESSAGE FROM THE ASSESSOR-RECORDER
The attached report contains a detailed analysis of all taxable property values in Shasta County as of the Lien Date, January 1, 2026, including exemptions granted by this office pursuant to California State Law. This report does not include the taxable value of properties assessed by the California State Board of Equalization.

Shasta County continues to have property reviews under Section 51 (Prop 8). As a result, 3,103 property owners were notified that their taxable value has been enrolled at a reduced current market value. These reductions were based on a comparison of the current market value of their property as of January 1, 2026, to the factored base year value (Prop 13 value) of their property in accordance with State law.

This report also contains Recorder statistics that are kept on a calendar year basis. For 2025 the number of recorded deeds decreased .98% from calendar year 2024 while the total number of recorded documents increased 5.66%. Total Documentary Transfer Tax (DTT) increased 17.8% over the prior year and was distributed to the County of Shasta $1,003,077, the City of Redding $424,591, the City of Anderson $38,430, and the City of Shasta Lake $28,160. Additional fees of $1,091,988 were collected and distributed to the State for the Building Homes and Jobs Act, as well as $30,181 collected on behalf of the District Attorney.

It is through the hard work, dedication, and professionalism of the employees in the Assessor-Recorder’s Office that this year’s work was completed. I want to thank them for their exceptional effort and dedicated public service.

Thank you for the privilege of serving as your Assessor-Recorder.

Leslie Morgan, Assessor-Recorder
At a basic tax rate of 1%, the assessment roll will fund schools and local government with over $262 million in revenue!
The Recorder collected DTT for 2025 of over $1.49 million dollars! Packet Pg. 10
Attachment: Annual Report - 2026-2027 (2A--Presentation by Shasta County Assessor-Recorder Leslie Morgan) Home 2 2025-2026 Annual Report

RESPONSIBILITIES OF THE ASSESSOR-RECORDER
The Assessor, a locally elected official, is responsible for locating, identifying the ownership, and determining the value of all assessable real and personal property within the County of Shasta. The Assessor must complete an annual assessment roll containing the assessed values for all properties subject to local assessment. The assessment roll must be submitted to the County Auditor by July 1st of each year.

The Assessor’s staff determines whether property that has changed ownership is subject to reappraisal under the provisions of Proposition 13. In addition, all new construction must be appraised in accordance with the law.

The Assessor’s staff maintains about 5,000 Assessor Parcel Maps as well as creates new maps based on cadastral data found on recorded surveys and maps. Assessor maps are also the base map for the County’s Geographic Information System (GIS). In addition, the Assessor’s cadastral mapping specialists keep track of all Tax Rate Area geographic boundaries to make sure the tax revenue goes to the correct entity. All this is done electronically allowing the Assessor’s Parcel Maps to be accessed by computer terminals.

Other functions of the Assessor include the granting of all legal exemptions, the defending of assessment appeals before the Assessment Appeals Board, the annual valuation of all business personal property and other taxable personal property such as boats and aircraft, and the Assessor’s staff must perform all mandatory property tax audits on business properties as defined by law.

The Recorder is responsible to examine, index, and electronically image all recordable documents submitted that meet statutory recording requirements. All vital records (births, deaths, and marriages) are filed with the Recorder. The Recorder must collect and account for all fees and transfer tax related to the recording of documents according to the law. In addition, the Recorder must preserve maps and other land records important to the history of Shasta County by using appropriate technology and by adopting proper storage methods.

The Recorder provides electronic access to recordings for the public in the Recorder’s lobby. The Recorder also has online access to recorded documents, available by paid subscription to title companies and other businesses, which streamlines the recording process in Shasta County.

The Assessor-Recorder’s Office maintains a web site (see below) with assessment and recording information available to download free. In addition, the Assessor’s Maps and assessment roll information may be viewed and printed. The Recorder’s Index of recorded documents may also be viewed on this site and vital records may be ordered on-line.

ASSESSOR-RECORDER CONTACTS
Assessor Website: https://www.shastacounty.gov/assessor Real Property: (530) 225-3600 [email protected] Personal Property: (530) 225-3640 [email protected] Exemptions: (530) 225-3636 [email protected]
Transfers: (530) 225-3600 [email protected]
Recorder Website: https://www.shastacounty.gov/recorder Recordings: (530) 225-5671 [email protected]
Vital Records: (530) 225-5678 [email protected] Packet Pg. 11
Attachment: Annual Report - 2026-2027 (2A--Presentation by Shasta County Assessor-Recorder Leslie Morgan) Home 3 2025-2026 Annual Report

ASSESSOR-RECORDER ORGAZATIONAL CHART
Packet Pg. 12
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SHASTA COUNTY ASSESSOR TAXABLE VALUES

LOCAL ASSESSMENT ROLL CHANGE

THE ASSESSMENT ROLL
The annual assessment roll is based on the value of all property as of the January 1 Lien Date.

Assessment roll growth is determined by the combined net annual assessment of transfers of ownership, new construction, the annual statutory increase, business and personal property, and exemptions.

What’s behind the changes?
This chart displays the year-to-year
changes in values which effect of
assessed values.
• New Construction
• Changes in Ownership
• Prop 13 – Base Year Value
adjustments for CPI
• Prop 8 – Market Value
reviews
0 100
200
300
400
500
600
700
800
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Millions
Ten Year: Roll Growth by Type
Prop 8 Increases New Construction Prop 13 Change in Ownership Packet Pg. 13
Attachment: Annual Report - 2026-2027 (2A--Presentation by Shasta County Assessor-Recorder Leslie Morgan) Home 5 2025-2026 Annual Report

SHASTA COUNTY ASSESSOR TAXABLE VALUES

BY CITY / UNINCORPORATED

CITY OF ANDERSON

CITY OF REDDING
300,824,292
950,836,892
71,022,326
Value Distribution
LAND

IMPR/FIXT

PERS PROP
3,070,428,147
10,993,701,189
812,880,488
Value Distribution
LAND

IMPR/FIXT

PERS PROP
Packet Pg. 14
Attachment: Annual Report - 2026-2027 (2A--Presentation by Shasta County Assessor-Recorder Leslie Morgan) Home 6 2025-2026 Annual Report

SHASTA COUNTY ASSESSOR TAXABLE VALUES

BY CITY / UNINCORPORATED

CITY OF SHASTA LAKE

UNINCORPORATED AREAS OF SHASTA COUNTY

244,961,735
847,500,925
31,649,157
Value Distribution
LAND

IMPR/FIXT

PERS PROP
3,172,525,093
6,865,042,459
646,173,327
Value Distribution
LAND

IMPR/FIXT

PERS PROP
Packet Pg. 15
Attachment: Annual Report - 2026-2027 (2A--Presentation by Shasta County Assessor-Recorder Leslie Morgan) Home 7 2025-2026 Annual Report

SHASTA COUNTY ASSESSOR TAXABLE VALUES

BY SCHOOL DISTRICT
Packet Pg. 16
Attachment: Annual Report - 2026-2027 (2A--Presentation by Shasta County Assessor-Recorder Leslie Morgan) Home 8 2025-2026 Annual Report

CEMETERY

0.16%
CHURCH

0.18%

COLLEGE

0.21%

DISABLED

VETERANS

13.63%

HISTORICAL AIRCRAFT
HOMEOWNERS 0.03%

13.26%

HOSPITAL

21.27%

LIBRARY /
MUSEUM

0.11%

LOW VALUE

0.03%

PRIVATE SCHOOL

0.46%

PUBLIC SCHOOLS
RELIGIOUS 0.38%

8.68%

WELFARE

41.58%
Other

1.57%

SHASTA COUNTY ASSESSOR TAXABLE VALUES

PROPERTY TAX EXEMPTIONS

PROPERTY TAX EXEMPTIONS
The California Constitution states that all property is taxable unless there is an exemption granted. * These exemptions are codified in the California Constitution and the Revenue and Taxation Code.

Exemptions granted to organizations formed and operated exclusively for qualifying purposes (religious, scientific, hospital or charitable) must meet specific organizational and property use requirements for the exemption to be granted.

Homeowners and disabled veterans may also qualify for an exemption on their principal place of residence. The Homeowners’ Exemption lowers your assessed value by $7,000 for a property tax savings of approximately $70 to $80 annually and is an important designation for intergenerational base year transfer claims. The Disabled Veterans’ Exemption value is based on qualifying factors.

Packet Pg. 17
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SHASTA COUNTY ASSESSOR ASSESSMENT HISTORY
PROPOSITION 13 - ASSESSMENT ROLL GROWTH
PROPOSITION 13
Passed by the voters in June 1978, Proposition 13 (Prop. 13) amended the California Constitution, limiting the assessment and taxation of property in California. It restricts both the tax rate and the annual increase of assessed value as follows:
• The property tax cannot exceed one percent of a property’s taxable value (plus service fees, improvement bonds and special assessments, many of which require voter approval). • A property’s original base value is its 1975–76 market value. A new base year value is established by reappraisal whenever there is a change in ownership or new construction. An increase in the assessed value of real property is limited to no more than two percent per year. • The adjusted (factored) base year value of real property is the upper limit of value for property tax purposes.
• Business property, boats, airplanes, and certain restricted properties are subject to annual reappraisal and assessment.

Proposition 13 generally limits assessed value growth to two percent annually, except for the reassessment of transfers of ownership or new construction. The limit is tied to the California Consumer Price Index (CCPI). For 2026–2027, the CCPI was 3.307% so base year values increases were limited to the 2% increase under Prop 13.

Who Benefits from Prop. 13?
Every property owner benefits from Prop. 13. However, the longer a property is owned, the greater the property tax benefit. Some change in ownership transactions qualify for an “exclusion” from reassessment. Examples of change in ownership exclusions include interspousal (marriage, death, divorce) and intergenerational (parent/child and grandparent/grandchild) transfers. $0
$5
$10
$15
$20
$25
$30
1978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026 Billions
$ 28,007,546,030
$1,778,046,200
TOTAL TAXABLE VALUE HAS INCREASED 1575% IN 48 YEARS
Packet Pg. 18
Attachment: Annual Report - 2026-2027 (2A--Presentation by Shasta County Assessor-Recorder Leslie Morgan) Home 10 2025-2026 Annual Report

SHASTA COUNTY ASSESSOR ASSESSMENT HISTORY

SUPPLEMENTAL ASSESSMENTS

SUPPLEMENTAL ASSESSMENTS
Supplemental assessments were created by Senate Bill 813 in 1983 to close inequities in Proposition

13. Whenever there is a reappraisal due to a change in ownership (e.g., property bought or sold) or due to the completion of new construction, State law requires the County Assessor to determine a new base year value for the property.

A notice of Supplemental Assessment is then issued by the Assessor’s Office and sent to the owner at the address of record. Following this notice, a Supplemental Tax Bill is issued by the Tax Collector’s office.

The Supplemental Tax Bill is based on the difference between the prior value and the new reappraisal. This value is prorated for the number of months remaining in the fiscal year (July 1 to June 30). Usually, it is not prorated in escrow during purchase, nor is it paid by the lender through an impound account. Unlike the secured tax bill, lending agencies do not receive a copy of the Supplemental Tax Bill.

Supplemental tax is not reported in the annual assessment roll. The Assessor’s Office produces a supplemental roll that generates significant additional revenue. The entire new assessed value is then reflected on the tax roll the following fiscal year.

What about Prop. 19?
On November 3, 2020, voters approved the Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act, commonly known as Proposition 19. Prop. 19 made sweeping changes to a property owner’s ability to transfer their Prop. 13 assessed values by adjusting the value comparisons and adding the ability to transfer assessed values between counties. Prop 19 also narrowed property tax benefits for intergenerational transfers and added new transfer provisions for victims of disasters and the severely handicapped.

Packet Pg. 19
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SHASTA COUNTY ASSESSOR ASSESSMENT HISTORY
SECTION 51 VALUE REVIEWS (PROP 8)
PROPOSITION 8
Revenue & Taxation (R&T) Code Section 51 known as Prop 8 was passed by California voters in November 1978 and states that the taxable value of real property shall be the lesser of factored Base Year Value or Full Cash Value. The factored base year value is the assessed value as determined at the time of purchase or construction, increased each year by no more than two percent, or the CCPI, whichever is lower.

When the market value of a property declines below the factored base year value, the Assessor enrolls the lower fair market value of their property. Properties where the market value exceeds the assessed value as of lien date, are not eligible for an adjustment.

TEMPORARY DECLINES IN ASSESSED VALUE
The Base Year & Prop 8 Value History from 2008 through the 2026 assessment roll can be seen in the chart below. The market decline that peaked in 2012 is an example of how Leslie Morgan and her team at the Shasta County Assessor’s Office proactively reviewed nearly half of the properties during the peak of the decline resulting in the reduction of 29,512 properties or 30.56% of the secured parcels. Although there will always be a small percentage of parcels that are enrolled under Prop 8, the Assessor and her team continue to monitor market trends for any downturns that may affect taxpayer’s assessments.
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 -10.00%
-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%
$-
$5,000,000,000
$10,000,000,000
$15,000,000,000
$20,000,000,000
$25,000,000,000
$30,000,000,000
1978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026 LAND IMPROVEMENTS PERSONALTY % CHANGE CPI
1978 - Prop 13 took effect

0.0 2.5

5.0 7.5

10.0 In Billions
Year - Count


3.1 Billion Reduction

Value Reduction Base Year Value Prop 8-Market Value
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SHASTA COUNTY ASSESSOR ASSESSMENT HISTORY

OTHER ASSESSMENTS

BUSINESS AND PERSONAL PROPERTY
All business and personal property is assessed annually at market value as of the January 1 Lien Date. Examples include computers, machinery, equipment, boats, airplanes, tractors, fixtures and furniture.

The assessed value of business and personal property is included on both the secured and unsecured roll and is derived from business property statements filed by taxpayers annually.

SECTION 170 – DISASTER RELIEF REVIEW OF CARR FIRE RESTORATIONS Revenue and Taxation Code section 170 provides that if a calamity such as fire, earthquake, or flooding damages or destroys property, the taxpayer may be eligible for property tax relief. In such cases, the assessor reappraises the property to reflect its damaged condition. In addition, when it is rebuilt in a like or similar manner, the property will retain its prior value (Proposition 13) for tax purposes.

In July 2018 Shasta County residents suffered greatly from the Carr fire. As a result, the Assessor’s staff enrolled 1,225 reductions which included 1,123 secured parcels. A review of the restorations and transfers for secured parcels enrolled is as follows:

COUNT VALUE
Secured Calamity Reductions Enrolled 1,123 $183,784,080

BASE YEAR VALUE RESTORATIONS ENROLLED
Assessment Roll Year 2019 21 $761,020
Assessment Roll Year 2020 129 $16,883,417
Assessment Roll Year 2021 135 $25,662,830
Assessment Roll Year 2022 40 $7,353,270
Assessment Roll Year 2023 15 $2,627,707
Assessment Roll Year 2024 3 $418,367
Assessment Roll Year 2025 8 $415,943
Assessment Roll Year 2026 1 $295,120
*Note - Values represent base year values restored. This does not include added new construction.

OTHER TRANSFERS
Change in Ownerships 422
Base Year Transfers to New Home 114
REMAINING CARR FIRE CLAIMS 244
OPEN PERMITS (CIP) - As of Jan 1, 2026 89
Beyond the Numbers - Customer Relations!
The most critical part of our services is assisting property owners as they navigate the complex laws of property tax assessment. Each encounter is an opportunity for our office to prove that we are here to help through our informative and professional interactions. The staff interactions inspire positive feedback from our customers through verbal and written communications. We are advocates for the taxpayers of Shasta County ensuring that assessed values are fair and equitable.

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SHASTA COUNTY ASSESSOR ASSESSMENT HISTORY

ASSESSMENT TEAM
THE ASSESSOR’S TEAM
The Assessor’s office has various sections within the department which specialize in each area and is overseen by the Assessor and two Deputy Assessor-Recorders.

Transfers and Mapping Staff works the documents coming from the Recorder’s office to set up appraisable events as well as initiating communications needed for any exclusions that may apply. In addition, the mapping specialists map new parcels, keep track Tax Rate Areas, and maintain the base map for GIS.

Valuation Specialized Support Staff process applications for many of the exemptions and exclusions that may apply to a properties assessment, input and track values associated with intergenerational and base year transfers, and input values and corrections processed by Real Property Appraisers.

Business and Personal Property Specialized Support Staff analyze discovery sources associated with businesses and other personal property such as boats and aircraft. Staff intakes annual filings for valuation, and input values and corrections processed by Auditor Appraisers.

Appraisal Staff includes Auditor Appraisers, Real Property Appraisers, Senior Specialist Real Property Appraisers, and Appraisal Managers. Over 50 percent of staff are professionally certified by the State of California. Appraisers provide assessment-related information to the public and interact with property owners or agents regarding property assessment appeals.

Other Specialized Staff focus on assessment topics such as exemptions, discovery, value processing, technology, and much more.

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SHASTA COUNTY ASSESSOR PERFORMANCE MEASUREMENTS

COST PER ASSESSMENT
PERFORMANCE MEASURES – COST PER ASSESSMENT
Led by County Assessor Leslie Morgan, the Assessor’s Office has created Management Team approach to performance measurements. Through reporting qualitative data that tracks the timeliness of product delivery, accuracy of assessments and overall efficiency, these measures allow the Assessor to identify and record service levels from year to year, designed to achieve specific continuous improvement objectives. The data is compiled from the results of similar, more detailed measures in each Division of the Assessor’s Office. The performance measures were developed in collaboration with both line staff and managers.

What is an Assessment Practices Survey?
The State Board of Equalization (BOE) acts in an oversight capacity to ensure compliance by county assessors with property tax laws, regulations, and assessment issues. The BOE conducts periodic compliance audits (surveys) of the county assessors' programs and develops property tax assessment policies and informational materials to guide county assessors and local assessment appeals boards.

The Government Code mandates and outlines the assessment practices survey program. The purpose of the survey is to determine the adequacy of the procedures and practices the county assessor uses in valuing property and to evaluate the assessor's performance of mandated duties.

The survey concentrates on statutory mandates and revenue-related issues.

The BOE also compiles data to be used for comparing administrative and assessment operations with those of other Assessors. See State Average * in the below chart.

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SHASTA COUNTY ASSESSOR PERFORMANCE MEASUREMENTS

ASSESSMENT APPEALS
PERFORMANCE MEASURES – ASSESSMENT APPEALS
Property owners are encouraged to review their assessments relative to the market value of their property as of January 1. Owners should contact the Assessor’s Office for an informal review if they believe their assessment is greater than the market value of the property as of the lien date. If, during the informal review, analysis of new information results in a revised determination of market value, the Assessor will change the assessment before the end of the formal filing period.

Shasta County Sample Results!
The BOE staff also performs appraisal samples of five county assessment rolls as a component of the survey or as a stand-alone report. These samples are used by Assessors to ensure that their values being enrolled are accurate and certifies the eligibility of the county to continue to recover costs associated with administering supplemental assessments.

Shasta County’s last sample in March 2023
indicated an average assessment ratio of

99.76%
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SHASTA COUNTY PROPERTY TAXES
General Revenue By Source / Percentage of Each Tax Dollar

PROPERTY TAXES AND GENERAL REVENUE
This tax is of major importance as the largest single revenue source for the support of municipal and school district services. Property tax is a local tax to finance local governments and public schools.

The Assessor’s job is to accurately assess all property in Shasta County in accordance with the California Revenue and Taxation Code; therefore, as homeowners benefit from the difference between assessed values and market values, it comes with an offset to schools and local governments dependent on property tax revenue to provide quality education and public services.

PROPERTY TAX is the largest source of discretionary
revenue available to the County.

Shasta County 2024-25 Actuals from the
2026-27 Recommended Budget
Where Do My Property Taxes Go?
A portion of the property tax you pay remains in the local community for services. The beneficiaries of property tax revenue are public schools, community colleges, the
County and our three cities. More than 50 percent of local property tax revenue generated in Shasta County goes to fund public education.

Counties, cities, towns, school districts and special districts use property taxes to fund schools, police and fire
protection, road maintenance and many other municipal
services.

PROPERTY
TAX

80.5%

TRANSIENT

OCCUPANCY TAX

1.4%

SALES TAX

6.0% INTEREST

7.3% FINES,

FOREFEITURES &

PENALTIES

2.8%
OTHER

2.0%
$0.47 $0.15 $0.12 $0.07 $0.14 $0.06

DISTRUBUTION OF A TAX DOLLAR
Schools ERAF County Cities Redevelopment Special Districts Packet Pg. 25
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SHASTA COUNTY PROPERTY TAXES
CALIFORNIA STATE (BOE) ROLL vs LOCAL ASSESSOR’S ROLL
CALIFORNIA STATE BOARD OF EQUALIZATION (BOE) ROLL VS LOCAL ASSESSOR’S ROLL The BOE is responsible for assessing property owned or used by certain public utilities and other specified companies operating in California, enabling counties to use those values to collect local property taxes.

The BOE’s State-Assessed Properties Division (SAPD) is responsible for annually preparing value recommendations for each state assessee. These indicators and recommendations, which are developed annually from information provided by state assessees, are used by the elected Board to determine the fair market value of the assessee’s unitary property. State-assessed property is not subject to the provisions of Proposition 13 and is assessed at its fair market value as of 12:01 a.m. each January 1.

How does Shasta County
get values allocated from
the State?
The Property values on the stateassessed roll are allocated by the BOE to the counties where the
properties are located. Each county
levies, bills, and collects the tax
directly from state assessees,
based upon the allocated values.

The taxes are levied at the same
rate that is applied to locally
assessed property.

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SHASTA COUNTY RECORDER

DOCUMENTS RECORDED AND FILED

RECORDED DOCUMENTS
The Recorder, upon payment of the proper fees and taxes, accepts for recordation any instrument, paper, or notice which is authorized or required by law to be recorded. Prior to recordation, these documents must contain sufficient information to be indexed as required by statute and be photographically reproducible.

Why Public Records?
The Office of the County Recorder is extremely important in the legal structure of our society. The right to own property under our system of government is a part of the freedoms we enjoy. Without the ability to prove property ownership rights, individuals would be unable to protect their land or maintain land rights as an asset. Early in history the United States created a recording system and Shasta County’s documents date back to its origins in 1850.

The Recorder maintains a permanent public record of documents related to the ownership and encumbrance of real property located in Shasta County.

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SHASTA COUNTY RECORDER

OTHER AGENCY FEES

OTHER FEES COLLECTED AT RECORDING
In addition to recording fees, the recorder collects and distributes other fees that have been set by statute to be collected at the time of recording and allocated to the appropriate agency.

Documentary Transfer Tax (DTT)
Revenue and Taxation Code section 11911
establishes that each deed, instrument, or writing
which conveys a property interest shall pay DTT at
the rate of fifty-five cents ($0.55) for each five
hundred dollars ($500) or fractional part thereof.

Building Homes & Jobs Act (SB2)
Effective January 1, 2018, Government Code section 27388.1 requires that documents accepted for recording be charged an additional seventy-five dollars ($75) fee unless a valid exemption applies and has been declared on the document prior to recording.

District Attorney Fraud Fee
Government Code section 27388 allows the District Attorney of the county to establish a fee of up to ten dollars ($10) to fund programs to enhance the capacity of local police and
prosecutors to deter, investigate, and prosecute real estate fraud crimes. Shasta County collects $3 under GC§27388. $0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2025 INCREASED $225,638 FROM 2024 OR 17.79%
$247,158
$271,716 $274,137
$298,977
$200,000
$225,000
$250,000
$275,000
$300,000
1st 2nd 3rd 4th
2025 By Quarter
$6,809
$7,538 $7,752 $8,081
$0
$2,000
$4,000
$6,000
$8,000
1st 2nd 3rd 4th
2025 By Quarter
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SHASTA COUNTY RECORDER

HISTORICAL DOCUMENT STATISTICS

PUBLIC RECORDS FOR TITLE SEARCHES
This office contains records relating to real estate from 1851 to present. All records are truly public in nature (with the exception of birth, death, and marriage records) and are, by law, available for your inspection. The original documents are never kept by this office, but are copied by Recorder’s personnel, at first by hand (years 1851 to 1907), then by typing (years 1908 to 1952), then by photography (years 1952 to 1982), by micrographics (years 1982 to 1998), and finally by electronic imaging starting in 1999.

A property title search examines public records on the property to confirm the property’s rightful legal owner. The title search should also reveal if there are any claims or liens on the property that could affect your purchase. Our staff is available to show you where the indexes and the books to which they refer are located, but we cannot give legal advice nor do a search for you. You may search the Official Records Index for documents that have been recorded. 0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
20002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022202320242025 Total Deeds
1,857 DOCUMENT INCREASE FROM 2024
68 DEED DECREASE FROM 2024 TO 2025
Deeds are a written instrument which, when properly executed and delivered, transfers title to real estate.

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0 500
1,000
1,500
2,000
2,500
3,000
3,500
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

SHASTA COUNTY RECORDER

VITAL RECORDS AND RESTRICTIVE COVENANTS

VITAL RECORDS
The Recorder maintains vital records such as Birth, Death, and Marriage certificates. Only certain individuals are allowed to receive an authorized certified copy of a birth, death, or marriage record. An authorized certified copy of a birth record is required to obtain a driver's license, passport, social security card and other services related to an individual's identity.

Informational Certified Copies
Those who are not authorized or do not wish to submit the notarized Certificate of Identity may receive an Informational Certified Copy. Informational Certified Copies have the words "INFORMATIONAL, NOT A VALID DOCUMENT TO ESTABLISH IDENTITY," imprinted across the face of the copy.

Authorized vs. Informational Certified Copies
Authorized copies are used for legal purposes.

Informational copies are used for mostly non-legal purposes and ancestry.

RESTRICTIVE COVENANT MODIFICATIONS (AB1466)
Current law prohibits public documents from being recorded with discriminatory or restrictive covenant language (i.e., age, race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, veteran or military status, genetic information, or national origin). The recent passing of Assembly Bill 1466 (AB 1466) aims to remove any discriminatory or restrictive covenant language on historical public records.

The Recorder has implemented a comprehensive search and review of documents recorded in Shasta County. Historical recorded documents found that contain unlawful discriminatory or restrictive covenant language are redacted and re-recorded. Although staffing level has limited reviews, the full scope of the implementation can be viewed on the Recorder’s website. 316 Restrictive Covenant Modifications
Recorded to Date!
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CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Approve City Council Minutes: Special Meeting – Closed Session of September 15, 2026; Regular Meeting of September 15, 2026; and Special Meeting – Closed Session of September 21, 2026.

Attachments
Unofficial Minutes - Special Meeting - Closed Session of September 15, 2026 Unofficial Minutes - Regular Meeting of September 15, 2026 Unofficial Minutes - Special Meeting - Closed Session of September 21, 2026 MEETING DATE: October 6, 2026
ITEM NO. 4(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4(a)--Approve City Council Minutes
Sharlene Tipton, City Clerk
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09/15/2026
Unofficial Minutes Redding City Council, Special Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
September 15, 2026, 4:45 PM
The meeting was called to order by Mayor Mike Littau with the following Council Members present: Tenessa Audette, Jack Munns, and Erin Resner. Vice Mayor Dr. Paul Dhanuka arrived at 4:56 p.m.

Also present: Interim City Attorney Mary Anne Wagner, Interim 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 or via two-way audio wished to speak regarding the following Closed Session items.

CLOSED SESSION
At the hour of 4:48 p.m., Mayor Littau announced that the Council would adjourn to Closed Session.

At the hour of 6:13 p.m., Mayor Littau: (1) reconvened the Closed Session to Open Session and stated that the Closed Session meeting is recessed to the end of the regular City Council Meeting held on the same date, September 15, 2026, at 6:00 p.m. in the City of Redding Council Chambers located at 777 Cypress Avenue, Redding, CA 96001; and (2) reported that in reference to:
3A. Closed Session pursuant to California Government Code Section 54956.8:

CONFERENCE WITH REAL PROPERTY NEGOTIATOR
3A(1)
Location: 1728 East Cypress Avenue, APN No. 067-080-048; City Negotiator: Assistant Director of Public Works James Triantafyllou Parties: City of Redding and Piggy and the Farmer Inc.

Under Negotiation: Price and Terms
3A(2)
Location: 2525 Victor Avenue, APN No. 067-490-023
City Negotiator: Assistant Director of Public Works James Triantafyllou Parties: City of Redding and Warren K. Partridge and Laurey L. Partridge, husband and wife, as Joint Tenants
Under Negotiation: Price and Terms
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)(4):

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Initiation of Litigation – One potential case
Interim City Attorney Wagner stated that the Council voted unanimously to authorize the initiation of litigation. The action, the defendants, and the other particulars shall, once formally commenced, be disclosed to any person who asks.

At the hour of 9:26 p.m., Mayor Littau announced that the Council would adjourn back into Closed Session to discuss the following items.

At the hour of 11:02 p.m., Mayor Littau reconvened the Closed Session to Open Session and reported that in reference to:
3C. Closed Session pursuant to California Government Code Section 54957:

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: Interim City Manager
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Pursuant to Government Code Section 54957.1(a), the City Council took no reportable action on this item.

Interim City Manager Webb left at 10:30 p.m. and did not return. 3D. Closed Session pursuant to California Government Code Section 54957(b):

PUBLIC EMPLOYMENT
City Manager
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 11:03 p.m. Mayor Littau declared the meeting adjourned.

APPROVED:
___________________________
Mike Littau, Mayor
ATTEST:
____________________________
Sharlene Tipton, City Clerk
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Unofficial Minutes Redding City Council, Regular Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
September 15, 2026, 6:00 PM
The meeting was called to order at 6:06 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, Interim City Manager/Public Works Director Michael Webb, City Clerk Sharlene Tipton, and Executive Assistant II Erin Barnhart.

The Pledge of Allegiance was led by Vice Mayor Dr. Dhanuka.

The Invocation was provided by Reverend Patrick A. Blewett, PhD, Dean of A.W. Tozer Theological Seminary, Simpson University.

PUBLIC COMMENT
Robert Sid opined his support for the City Council to appoint Interim City Manager Michael Webb as the next City Manager for the City of Redding.

Mayra Monarch asked Council to consider an item at a future meeting regarding caste discrimination and equality practices.

Nick Gardner opined his concern regarding the City’s lack of transparency regarding the W. Jaxon Baker lawsuit against the City relative to the Carr Fire in 2018.

Interim City Manager Michael Webb confirmed that the lawsuit was settled.

Leslie Sawyer asked Council to provide an update regarding the Shasta SuperMoto Club’s racetrack.

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 September 1, 2026; and Regular Meeting of September 1, 2026.
4(b). Accept City of Redding Proof of Cash and Cash by Fund reports for the month of June 2026.
4(c). Accept the City of Redding Treasurer’s Report for June 2026.

4.1(a). This item was moved to the Regular Calendar as Item No. 9.1(a) at the request of Mayor Pro Tempore Erin Resner.

4.1(b). This item was moved to the Regular Calendar as Item No. 9.1(b) at the request of Mayor Pro Tempore Resner.

4.6(a). Authorize and approve the following regarding Request for Proposals (RFP) Schedule No. 5710, Pasturing and Farming opportunity at the Redding Regional Airport: (1) award RFP to Hawes River Acres, Inc.; (2) enter into a Lease Agreement with Hawes River Acres, Inc.; (3) authorize the Mayor to execute the Agreement; and (4) find that this activity is categorically exempt from environmental review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities.

4.6(b). This item was moved to the Regular Calendar as Item No. 9.6(b) at the request of Council Member Audette.

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4.9(a). Authorize and approve the following: (1) adopt Resolution No. 2026-076, a resolution of the City Council of the City of Redding, authorizing the acceptance of an Alcohol Policing Partnership grant administered by the California Department of Alcoholic Beverage Control in the amount of $69,004 for overtime, training, and operating expenses designed to address alcohol enforcement in the City of Redding; (2) adopt Resolution No. 2026-077, a resolution of the City Council of the City of Redding, approving and adopting the 56th Amendment to the City Budget Resolution No. 2025-049 appropriating $69,000 in grant funds from the California Department of Alcoholic Beverage Control; and (3) authorize the City Manager, or designee, to execute the grant agreement, and any associated amendments.

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).Authorize and approve the following actions relative to Bid Schedule No. 5724 (Project No. STADM23031), Buenaventura Fill Repair Project (Project): (1) award to Eddie Axner Construction, Inc. in the amount of $285,911.79; (2) approve $55,000 to cover the cost of administration and inspection fees; (3) approve $120,000 for project development costs; (4) approve $50,000 to provide construction contingency funding; (5) authorize the City Manager, or designee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000; (6) approve the project design plans, specifications, and special provisions; and (7) find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 – Existing Facilities.

4.11(c).Authorize and approve the following actions relative to Bid Schedule No. 5721, Canyon Road over Anderson-Cottonwood Irrigation (ACID) Canal Bridge Widening Project: (1) award the project to the lowest bidder, Viking Construction Company, Inc., in the amount of $3,484,375.75; (2) approve an additional $975,000 to cover the cost of administration and inspection fees; (3) approve $975,000 for project development costs; (4) approve $348,000 to provide construction contingency funding; (5) authorize the City Manager, or designee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000; (6) find that the project is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 – Existing Facilities; and (7) adopt Resolution No. 2026-078, a resolution of the City Council of the City of Redding, approving and adopting the 55th Amendment to City Budget Resolution No. 2025-049 appropriating $421,460 for the Canyon Road over ACID Canal Bridge Rehabilitation project; to be funded with Streets Capital budget available in Fiscal Year 2026-27.

4.15(a). This item was moved to the Regular Calendar as Item No. 9.15(a) at the request of Council Member Audette.

4.15(b). This item was moved to the Regular Calendar as Item No. 9.15(b) at the request of Council Member Audette.

A MOTION WAS MADE by Council Member Dr. Dhanuka, 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. 2026-076 through 2026-078 are on file the Office of the City Clerk.

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PUBLIC HEARING

6.1. Public Hearing to consider Local Public Employees Vacant Positions - AB 2561.

Personnel Manager Leslie Saelee highlighted the Report to City Council (staff report), and provided a PowerPoint presentation, both incorporated herein by reference.

The hour of 6:40 p.m. having arrived, Mayor Littau opened the Public Hearing.

Public Works/Engineering Department Management Analyst Brendan Carr spoke on behalf of the Redding Independent Employee’s Organization (RIEO), and stated that RIEO represents over 30 percent of the City’s personnel total; and asked the Council to describe specifically what recruitment and retention efforts it is undertaking with respect to RIEO’s classifications.

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

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Munns, to accept the report regarding City of Redding vacancies, recruitment and retention in accordance with Government Code Section 3502.3 (Assembly Bill 2561).

The Vote: Unanimous Ayes.

REGULAR CALENDAR: REPORTS & COMMUNICATIONS OF DEPARTMENTS,

BOARDS, COMMISSIONS AND COMMITTEES
At Mayor Littau’s direction, the following agenda items were considered in the order set below:

9.1(c). Oral Presentation from Circle 6 Consulting, Inc.

Interim City Manager Webb highlighted the Report to City Council (staff report), and Nathan Sprague, Managing Partner with Circle 6 Consulting, provided a PowerPoint presentation, both incorporated herein by reference. Mr. Sprague provided feedback and suggestions to the Council for their consideration with several pathways to move forward.

The following spoke in opposition to the building of Data Centers within the City of Redding: Kathy Grissom, Susan Weiss, Viktoria Peterson, Lauren Otten, Robert Sid, Leslie, Melody Fowler, and Jade Olive.

A robust discussion amongst the Council, staff, and Mr. Sprague ensued.

Council Member Resner spoke on behalf of the entire City Council to state that Data Centers are not a viable industry for the Redding community, and there will be no consideration of any data centers to be built within the City of Redding.

Council Member Audette’s feedback was incorporated into the final motion.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Munns, to: (1) accept the informational presentation from Principal Partner Nathan Sprague of Circle 6 Consulting Inc. regarding the Rapid Efficiency and Cost Reduction Engagement Study (Study) for the City of Redding; (2) direct staff to schedule a special City Council priority-setting meeting, to include Circle 6 staff virtually, focused on collectively creating a strategic vision plan regarding how to accomplish a reduction of the City's budget; and (3) remove any consideration of Data Centers within the City of Redding. The Vote: Unanimous Ayes.

9.1(d). Report regarding formation of the Financial Advisory Committee (FAC).

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

In response to Council Member Resner’s request for an update from Committee Members Mayor Littau and Council Member Audette, each shared their thoughts, concerns and future expectations for the FAC.

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Leslie Sawyer suggested that the FAC be provided with the Circle 6 Consulting suggestions, such as sharing the no regrets list.

FAC Member Michael Quinn spoke in support of the Circle 6 Consulting efficiency study, and expressed his dedication and appreciation for his appointment to the FAC.

Council Member Munns left the Chambers at 8:43 p.m. and returned at 8:45 p.m.

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Erin Resner, seconded by Council Member Dr. Dhanuka, to: (1) accept the report regarding the roles and responsibilities of the Financial Advisory Committee (FAC); and (2) direct staff to remove utility financial matters on page no. 2 of the staff report as potential areas of review by the FAC.

The Vote: Unanimous Ayes.

9.1(a). This item was moved from the Consent Calendar as Item No. 4.1(a) at the request of Mayor Pro Tempore Resner. Items 9.1(a) and 9.1(b) were discussed in conjunction with each other.

First Amendment to the PSA with Fall River Development; Stillwater Business Park.

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

In response to Council Member Resner’s question regarding funds deposited into the Capital Projects fund, Interim City Manager Webb explained that the intent of those funds were used and leveraged to obtain Economic Development Administration grants and other grants to build the infrastructure that the City is required to construct as the Stillwater Business Park developer, and has approximately $3.8 million currently in the fund.

In response to Council Member Resner’s questions, Economic Development Corporation of Shasta County President/CEO Rebecca Baer stated that there were currently five parcels unencumbered, not in any negotiations at this time, and 10 parcels that have been sold, are encumbered or in some form of contract or negotiation.

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Resner, seconded by Council Member Dr.

Dhanuka, to authorize and approve the following actions regarding the sale of real property located at 5750 Venture Parkway, Stillwater Business Park Lot 9 (Assessor’s Parcel No. 054-220-017) to Fall River Development Inc.: (1) approve the First Amendment and Reinstatement to the Real Estate Purchase and Sale Agreement (C-11263) for approximately 10 acres of City of Redding (City)-owned property, thereby extending the due diligence period to November 20, 2026, and establishing December 21, 2026, as the new closing date; (2) authorize the Mayor to execute all related documents needed to complete the transaction; and (3) find that the sale of the City-owned property is categorically exempt from review under the California Environmental Quality Act Guidelines Section 15312 (surplus Government Property Sales).

The Vote: Unanimous Ayes.

9.1(b). This item was moved from the Consent Calendar as Item No. 4.1(b) at the request of Mayor Tempore Resner. Items 9.1(a) and 9.1(b) were discussed in conjunction with each other.

Economic Development Administration's Public Works and Economic Adjustment Assistance Program Grant.

Interim City Manager Webb highlighted the Report to City Council (staff report), incorporated herein by reference.

Council Member Audette opined that ratepayer funds should not be used if there is a dedicated fund for Stillwater Park infrastructure needs.

Packet Pg. 37
Attachment: Unofficial Minutes - Regular Meeting of September 15, 2026 (4(a)--Approve City Council Minutes) 260
09/15/2026
In response to Mayor Pro Tempore Resner’s question, Interim City Manager Webb stated that he would need to research if there are any policies related to allowing Council to borrow or take from dedicated funds for other purposes, but at the very least, it would take three Council Members to approve such action.

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Audette to: (1) accept $7,931,411 in grant funds from the Department of Commerce Economic Development Administration’s Public Works and Economic Adjustment Assistance Program to implement utilities infrastructure at the Stillwater Business Park; and (2) direct staff to provide any funding options to the City Council for consideration prior to approval.

AN ALTERNATE MOTION WAS MADE by Council Member Resner, seconded by Council Member Dr. Dhanuka, to: (1) accept $7,931,411 in grant funds from the Department of Commerce Economic Development Administration’s Public Works and Economic Adjustment Assistance Program to implement utilities infrastructure at the Stillwater Business Park; (2) direct staff to return to Council with a budget breakdown for consideration; and (3) authorize the City Manager, or designee, to execute all documents necessary to accept and implement the grant. The Vote: Unanimous Ayes.

9.6(b). This item was moved from the Consent Calendar as Item No. 4.6(b) at the request of Council Member Audette.

Budget Resolution - appropriating funds for grant-funded capital projects at the Redding Regional Airport.

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

In response to Council Member Audette’s questions, Director Menne explained that this is not a five-year loan, but is similar to a line of credit that is going to cash flow a grant, further noting that the five years is the amount of time it would take to collect debt that the airport currently owes to the general fund, and will be brought back to the Council for discussion at a future date. He further explained that there will be reimbursements along the way with a Passenger Facility Charge (PFC) component, which is a fee on an airline ticket, that will then be incrementally dispersed back with the reimbursements to the water utility which will be cash flowing the grant.

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Audette, seconded by Council Member Munns, to adopt Resolution No. 2026-079, a resolution of the City Council of the City of Redding, approving and adopting the 57th Amendment to City Budget Resolution No. 2025-049 appropriating funds totaling $1,306,030 for grant-funded capital projects at the Redding Regional Airport including the Wildlife Hazard Assessment and Wildlife Hazard Mitigation Plan project, the Runway Closure Marker Procurement project, and the Runway 17-35 Safety Area Improvements Design project.

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 No. 2026-079 is on file in the Office of the City Clerk.

9.11(d).This item was removed from the agenda at the request of City of Redding staff.

Updated project cost for the City of Redding Organics Diversion to Energy Operations project.

Packet Pg. 38
Attachment: Unofficial Minutes - Regular Meeting of September 15, 2026 (4(a)--Approve City Council Minutes) 261
09/15/2026

9.15(a).This item was moved from the Consent Calendar as Item No. 4.15(a) at the request of Council Member Audette.

Appointment of Interim Director of Finance.

Personnel Manager Leslie Saelee highlighted the Report to City Council (staff report), incorporated herein by reference, and explained that pursuant to the Redding Municipal Code, the City Manager selects the Police Chief, Fire Chief, and Director of Finance, whether Interim or not, subject to Council approval.

At Council Member Audette’s request, Assistant Electric Utility Director/Interim Finance Director Joseph Bowers provided an overview of his current position in the Redding Electric Utility, and prior financial employment background. Mr. Bowers noted that the objective is to provide assistance to both roles with the Redding Electric Utility as well as the City’s finance division, until a permanent Finance Director can be appointed.

A discussion amongst the Council ensued.

A MOTION WAS MADE by Council Member Audette, seconded by Council Member Resner, to approve the Interim City Manager's appointment of Joe Bowers as Interim Director of Finance, effective September 13, 2026, to serve until a permanent Director of Finance is appointed, or until otherwise determined by the City Manager.

The Vote: Unanimous Ayes.

9.15(b).This item was moved from the Consent Calendar as Item No. 4.15(b) at the request of Council Member Audette.

Appointment of Interim Fire Chief.

Personnel Manager Leslie Saelee highlighted the Report to City Council (staff report), incorporated herein by reference, and explained that pursuant to the Redding Municipal Code, the City Manager selects the Police Chief, Fire Chief, and Director of Finance, whether Interim or not, subject to Council approval.

At Council Member Audette’s request, Deputy Fire Chief/Interim Fire Chief Jason Foley shared his 22 years with the Redding Fire Department, and expressed his appreciation for the opportunity to serve.

A discussion amongst the Council ensued.

Vice Mayor Dr. Dhanuka expressed appreciation to City of Redding employees for their efforts during these difficult times.

A MOTION WAS MADE by Council Member Dr. Dhanuka, seconded by Council Member Munns, to, approve the Interim City Manager's appointment of Jason Foley as Interim Fire Chief, retroactively effective August 22, 2026, to serve in that capacity until a permanent Fire Chief is appointed or otherwise determined by the City Manager, subject to the terms and conditions established by the City.

The Vote: Unanimous Ayes.

SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS FOR

FUTURE CITY COUNCIL MEETINGS
In response to Council Member Audette’s suggestion, a consensus of the Council directed staff to return to a future Council meeting with an update regarding the Redding Motorsports Park Request for Proposal.

In response to Council Member Audette’s suggestion, a consensus of the Council directed staff to return to a future Council meeting with a report updating Council on the FEMA Staffing For Adequate Fire and Emergency Response (SAFER) grant including timelines and historical information, as well as the current status of the grant.

Packet Pg. 39
Attachment: Unofficial Minutes - Regular Meeting of September 15, 2026 (4(a)--Approve City Council Minutes) 262
09/15/2026
In response to Vice Mayor Dr. Paul Dhanuka’s questions, Interim City Manager Webb confirmed that a Request for Proposal has been concluded for the Redding Civic Auditorium with five vendor submissions. He stated that staff are in the process of putting together a selection committee including members of the public and staff to review and rate the applicants, and once this committee has concluded their review, an item will be agendized to provide information and options available for Council’s consideration at a future meeting.

ADJOURNMENT
There being no further business at the hour of 9:26 p.m., Mayor Littau declared the meeting adjourned.

APPROVED:
___________________________
Mike Littau, Mayor
ATTEST:
____________________________
Sharlene Tipton, City Clerk
Packet Pg. 40
Attachment: Unofficial Minutes - Regular Meeting of September 15, 2026 (4(a)--Approve City Council Minutes) 265
09/21/2026
Unofficial Minutes Redding City Council, Special Meeting Civic Center Council Chambers
777 Cypress Avenue
Redding, CA 96001
September 21, 2026, 4:00 PM
The meeting was called to order at 4:04 p.m. by Vice Mayor Dr. Paul Dhanuka with the following Council Members present: Tenessa Audette, Jack Munns, and Erin Resner. Mayor Mike Littau arrived at 4:38 p.m.

Also present: City Clerk Sharlene Tipton, and Executive Assistant II Erin Barnhart.

PUBLIC COMMENT
Vice Mayor Dr. Dhanuka announced that no one present via two-way audio wished to speak regarding the following Closed Session items.

Steve Kohn and Robert Sid supported the Council appointing Interim City Manager Michael Webb to the City Manager position and opposed an open recruitment for that position.

Thomas H. expressed his disappointment with Mayor Littau not being in attendance, and with the discussion for City Manager occurring behind closed doors in Closed Session.

CLOSED SESSION
A discussion amongst the Council ensued, noting that City of Redding staff had to find the right time for the meeting taking into consideration each Council Member’s busy schedule and availability that would work for the majority of the Council. It was further explained that Mayor Littau was the State of the City practice (with the event to be held the next day) and would join the meeting as soon as he could.

At the hour of 4:20 p.m., Vice Mayor Dr. Dhanuka announced that the Council would adjourn to Closed Session.

Interim City Attorney Mary Anne Wagner joined the Closed Session meeting remotely.

Mayor Littau arrived at 4:38 p.m.

At the hour of 5:15 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 Manager
Mayor Littau stated that by a majority vote, the City Council authorized entering into an agreement with Ralph Andersen & Associates to lead recruitment efforts for the next City Manager.

ADJOURNMENT
There being no further business at the hour of 5:16 p.m. Mayor Littau declared the meeting adjourned.

APPROVED:
___________________________
Mike Littau, Mayor
ATTEST:
____________________________
Sharlene Tipton, City Clerk
Packet Pg. 41
Attachment: Unofficial Minutes - Special Meeting - Closed Session of September 21, 2026 (4(a)--Approve City Council Minutes)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Approve the City of Redding as an applicant for up to $1.2 million from the Integrated Climate Adaptation and Resilience Program’s Extreme Heat & Community Resilience Grant for infrastructure improvements to the Caldwell Recreation Center and the Redding Sports Park; and
(2) Authorize the City Manager, or designee, to execute all documents necessary to apply for the grant.

Fiscal Impact
The grant application will request up to the program’s maximum of $1.2 million to make needed building improvements to the Caldwell Recreation Center, located in Caldwell Park, and the Redding Sports Park. The grant does not require a match. The grant program operates on a reimbursement basis, and the City will need to cash-flow the project until reimbursement requests are made. If awarded, staff will return to Council for authorization to accept the grant and to identify a funding source to cash-flow the project. Applying for the grant will not have an impact on the General Fund.

Alternative Action
The City Council (Council) could decline to apply for the funds under this grant opportunity or provide staff with alternate direction.

MEETING DATE: October 6, 2026
ITEM NO. 4.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.6(a)--Authorize Submission of Extreme Heat and Community Resilience Grant application for improvements to the Caldwell Recreation Center and Redding Sports Park.

Travis Menne, Director of
Community Services/Airports
Packet Pg. 42
Report to Redding City Council September 29, 2026
Re: 4.6(a)--Authorize Application of EHCRP Grant for Caldwell & Sports Park Page 2 Background/Analysis
The Extreme Heat and Community Resilience Grant Program (Extreme Heat Program) is housed within the Integrated Climate Adaption and Resiliency Program at the Governor’s Office of Land Use and Climate Innovation. The grant will fund projects that reduce the impacts of increasingly frequent and severe extreme heat events to protect public health, reduce community vulnerability, and strengthen long-term climate resilience.

The proposed project focuses on weather-resilience improvements at the Caldwell Recreation Center and Redding Sports Park. Redding’s hot and sometimes smoky summer conditions limit outdoor recreation opportunities and increase the need for accessible, temperature-controlled public spaces where residents can safely participate in programs and community activities. Both facilities currently provide recreation programs, youth activities, classes, community gatherings, and other public services.

Grant funding would allow the City to improve these existing community assets, extending their useful life while increasing their usability for patrons, addressing key maintenance needs, and reducing energy costs. The grant program outlines a specific process for identifying individual improvements, which will be selected after the award through the grant’s required “belonging” process (community engagement). In general, the project can include cool roof or reflective roofing materials, shade structures, exterior and interior insulation improvements, energyefficient windows, weatherization, door replacement and energy-efficient HVAC systems. Staff will return with a completed work plan following the public outreach process.

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.” • Government of the 21st Century – “Be relevant and proactive to today’s residents and workforce opportunities and challenges. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Packet Pg. 43

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 loan from the Wastewater Utility 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. The application for CDAA funding was submitted on May 12, 2026, and is awaiting review and approval from the granting agency.

Alternative Action
The City Council (Council) may choose not to accept the project update and provide alternative direction to staff.

MEETING DATE: October 6, 2026
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4.11(a)--Update for the Tarmac Road Storm Drain Emergency Replacement Project
Michael Webb, Interim City
Manager/Public Works
Director
Packet Pg. 44
Report to Redding City Council September 29, 2026
Re: 4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement Project Page 2 Background/Analysis
On April 7, 2026, the 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 Road embankment, curb and gutter, sidewalk, asphalt concrete and other miscellaneous items of work.

Construction began in June 2026 and work to date includes completion of the Stage 1 (north end) concrete box culvert, headwall, embankment fill, joint utility trench and switching traffic from Stage 1 to Stage 2 (south end). Current work activities include excavation, removal of the damaged culvert, and concrete placement of the box culvert invert and other miscellaneous items of work.

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- April 7, 2026 - item no. 9.11(g) Packet Pg. 45

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. 46
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement 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. 47
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement 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. 48
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement 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. 49
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

APPROVED
Packet Pg. 50
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement 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. 51
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

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. 52
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement 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. 53
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement 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. 54
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

APPROVED
Packet Pg. 55
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

APPROVED
Packet Pg. 56
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

APPROVED
Packet Pg. 57
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

APPROVED
Packet Pg. 58
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement APPROVED Packet Pg. 59
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

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. 60
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement 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. 61
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement 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. 62
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

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. 63
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement APPROVED Packet Pg. 64
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement 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. 65
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

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
r`' /
H
e' r
1VIIKE LITTAU, Mayar
ATTEST: APPROVED AS TC} FC?RCVI:
r,
LL.W,-^`,
x.' v..; .'.....-.,,,-,--
SHARLENE TIpT City Clerk C STIAN M. CITRTIS, City Attarney

APPROVED
Packet Pg. 66
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement 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;
IN TEST`Mt 1YY t IERE F, 1 HEREUNTEI SET Y H 4ND , 41VD CA SE THE S".EAL UF THE CITY CIF R.E ING TG BE AF'FIXE THI,S
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1 APPROVED
Packet Pg. 67
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

APPROVED
Packet Pg. 68
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement Project)

APPROVED
Packet Pg. 69
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement Project)

APPROVED
Packet Pg. 70
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement Project)

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. 71
Attachment: Previous Staff Report- April 7, 2026 - item no. 9.11(g) (4.11(a)--Update for the Tarmac Rd Storm Drain Emergency Replacement

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following related to the City of Redding Pump House 1 Replacement Project:
(1) Authorize staff to negotiate and the City Manager, or designee, to execute a Credit Transfer Agreement with the National Fish and Wildlife Foundation in an amount not-toexceed $740,000; (2) Authorize staff to negotiate and the City Manager, or designee, to execute an agreement for the purchase of bank credits with the Butte Sink Mitigation Bank and/or the Hamilton Bend Mitigation Bank in an amount not-to-exceed $480,000; and (3) Adopt Resolution approving and adopting the 58th Amendment to City Budget Resolution No. 2025-049 appropriating $1,220,000 for the Pump Station 1 Replacement Project.

Fiscal Impact
The total cost of the Pump Station 1 Replacement Project (project) is currently estimated at approximately $74 million. The City of Redding’s Water Utility (Utility) has funded all project costs to date with Utility funds. The Utility has set aside six percent of annual revenues for several years and currently has approximately $7 million available for the design and permitting of the project. Staff are working to obtain multiple grants, and on August 18, 2026, the City of Redding (City) was informed that the project has been included on the approved fiscal year 2026-2027 funding list and eligible to receive the $50 million SRF loan. The General Fund would not be impacted by purchasing the required compensatory mitigation credits.

The not to exceed amounts of $740,000 and $480,000 are comprised of the current anticipated compensatory mitigation costs, $615,000 and $400,000 respectively, plus a contingency amount of $205,000, for a total not to exceed expenditure amount of $1,220,000. The attached budget resolution is to move available project set aside funds to the project account. Some shifting of approved mitigation costs between the credit types may be necessary within the overall approved budgeted amount.

MEETING DATE: October 6, 2026
ITEM NO. 4.11(c)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 4.11(c)--Authorize Staff to Negotiate and City Manager to Execute Mitigation Agreements and Adopt Budget Resolution
Michael Webb, Interim City
Manager/Public Works
Director
Packet Pg. 72
Report to Redding City Council September 30, 2026
Re: 4.11(c)--Mitigation Agreements Page 2
Alternative Action
The City Council (Council) may choose not to authorize staff to negotiate and the City Manager to execute the agreements. Without authorization the agreements may not be executed in a timely manner and construction funding for the project may be delayed.

Background/Analysis
The City’s Pump Station 1, located on the Sacramento River, will be completely replaced and relocated upriver because it has reached the end of its service life, its current location is in a shallow portion of the river that significantly limits pumping capacity during low river levels, and current pumping capacity will not meet expected future demands. For additional background and details concerning the project, please refer to the previous staff reports, attached.

In compliance with the California Environmental Quality Act, the City prepared an Environmental Impact Report (EIR) for the project. The EIR was used to analyze and quantify impacts to sensitive environmental resources. It has been determined that the project will impact federal and state regulated waters, vegetation, and habitat for threatened and endangered species (Elderberry Shrubs & Critical Habitat for Chinook Salmon). It has also been determined that the project may affect, but is not likely to adversely affect Chinook Salmon. In order to construct the project, the City is required to obtain permits and approvals from multiple state and federal regulatory resource agencies, including but not limited to: U.S Army corps of Engineers (USACE), National Marine Fisheries Service (NMFS), U.S. Fish and Wildlife Service, California Department of Fish and Wildlife (CDFW), and California State Water Resources Control Board (CWRCB). In addition to permit fees, each of these agencies require the purchase of compensatory mitigation to offset temporary and permanent impacts.

The table below summarizes the compensatory mitigation requirements for the project:

Agency Impact
Type
Credit Type Mitigation
Cost
Contingency Total Mitigation Cost
USACE
&
CWRCB
Waters In-Lieu Fee
Credit
$615,000 $125,000 $740,000
CDFW &
NMFS
Habitat
& Veg
Mitigation
Bank Credit
$400,000 $80,000 $480,000
Total $1,015,000 $205,000 $1,220,000
Each agency calculates impacts at a different mitigation ratio; however, some agencies will accept the same type of credit, from the same credit supplier. For example; the USACE and CWRCB both accept In-Lieu Fee Credit, and only the higher ratio must be purchased to satisfy both agencies.

The City was recently informed that the project has been included on the approved Fiscal Year 2026-2027 funding list and is eligible to receive the $50 million SRF loan; however, if the environmental tasks cannot be completed by the end of the calendar year, the project will be moved to a future fiscal year for funding and the interest rate may be higher than the current rate of 2.1 percent.

Packet Pg. 73
Report to Redding City Council September 30, 2026
Re: 4.11(c)--Mitigation Agreements Page 3
Approval of these credit purchases will allow the City to obtain all of the necessary permits and approvals in a timely and efficient manner; allow the City to receive the low interest SRF funding for construction; and reduce the length of time between permitting and construction.

All contracts and agreements will be approved to form by the City Attorney. Examples of the Credit Transfer Agreement and Mitigation Bank Agreement are attached.

Environmental Review
This action is not a project as defined by the California Environmental Quality Act, and no further action is required. On April 22, 2025, the Planning Commission conducted a public hearing and upon conclusion adopted Resolution number 2025-01 certifying the Environmental Impact Report (EIR-2025-00478), thereby adopting the Findings of Fact and Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program; and approved Use Permit Application UP-2024-01017 for the Pump Station 1 Replacement Project.

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

Attachments
Budget Resolution
Example Credit Transfer Agreement
Previous Staff Report 8-18-2026
Example Mitigation Bank Agreement
Previous Staff Report 7-21-2026
Previous Staff Report 1-20-2026
Previous Staff Report 12-2-2025
Packet Pg. 74
Resolution No. 2026 - ____________

A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 58 TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049 INCREASING APPROPRIATIONS BY $1,220,000 FOR PUMP STATION 1 REPLACEMENT PROJECT FOR FISCAL YEAR 2026-27.

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
221 6101 Water General and
Administration
$1,220,000
THAT account titles and numbers requiring adjustments by this Resolution are as follows:

USE SOURCE

OF FUNDS OF FUNDS
Increase (Decrease) Beginning Balance
221-0000-2910000 Fund Balance $ 1,220,000
Increase Expenditures
221-6191-7800026 Structures & Improvements $1,220,000
Total $1,220,000 $ 1,220,000
THAT the purpose is to increase appropriations by $1,220,000 for Pump Station 1 Replacement Project for Fiscal Year 2026-27.

I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 6th day of October, 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 MARY ANNE WAGNER, City Attorney Packet Pg. 75
Attachment: Budget Resolution (4.11(c)--Mitigation Agreements) 1 SACRAMENTO DISTRICT CALIFORNIA IN-LIEU FEE PROGRAM

CREDIT TRANSFER AGREEMENT
Contract #: 00379
This Credit Transfer Agreement (“Agreement”) is entered into this day of , 20 , by and between THE NATIONAL FISH AND WILDLIFE FOUNDATION (“Program Sponsor”) and CITY OF REDDING (“Purchaser”), jointly referred to as the “Parties,” as follows:

RECITALS
A. The Program Sponsor developed the Sacramento District California In-Lieu Fee Program (“ILF Program”) covering the geographic area within the jurisdictional limits of the U.S. Army Corps of Engineers, Sacramento District within California; and
B. The ILF Program was approved through execution of the ILF Program Instrument by the Sacramento District of the U.S. Army Corps of Engineers (“USACE”), Region IX of the U.S.

Environmental Protection Agency (“USEPA”), the National Oceanic and Atmospheric Administration’s National Marine Fisheries Service (“NMFS”), the State Water Resources Control Board (“State Water Board”), the Central Valley Regional Water Quality Control Board (“Central Valley Water Board”), and the Lahontan Regional Water Quality Control Board (“Lahontan Water Board”) (jointly referred to as “Agencies”) on October 10, 2014, (as the same has been amended from time to time, the “Instrument”), and the ILF Program is currently in good standing with the Agencies; and C. The ILF Program has received approval from the Agencies to offer Aquatic Resource Credits and Vernal Pool Credits pursuant to the Instrument, as compensation for impacts to aquatic resources regulated by the Agencies; and
D. Purchaser is seeking to implement the Girvan Road Over Olney Creek Bridge Replacement Project in Shasta County, California, in accordance with a Clean Water Act Section 401 Water Quality Certification and Order (WDID No. 5A45CR00682), issued by the Central Valley Water Board to the City of Redding, dated January 23, 2026, (“WDID No. 5A45CR00682 Order”). The WDID No. 5A45CR00682 Order authorized the project, which “proposes to replace the bridge with a 109-footlong, three-span, 52-foot-wide, continuous concrete slab on intermediate pile bent supports and pile supported diaphragm abutments.” Specifically, the Purchaser seeks to “provide compensatory mitigation for the authorized impact to 0.019 acre of stream channel...[and] 0.006 acre of wetland” by purchasing credits from the ILF Program in accordance with the WDID No. 5A45CR00682 Order, as described in Exhibit “A” attached hereto; and
E. Purchaser has been authorized by the WDID No. 5A45CR00682 Order referenced in paragraph D above to purchase “0.02 Aquatic Resource Credits...[and] 0.01 Aquatic Resource Credits from National Fish and Wildlife Foundation’s Sacramento District California In-Lieu Fee Program in the Northeast Sacramento River Watershed Service Area”; and F. Given the facts stated in paragraph E above, Purchaser desires to purchase from the ILF Program and the Program Sponsor desires to transfer to Purchaser Three Hundredths (0.03) Aquatic Resource Credit in the Northeast Sacramento River Watershed Service Area.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

Packet Pg. 76
Attachment: Example Credit Transfer Agreement (4.11(c)--Mitigation Agreements) 2 1. The Program Sponsor hereby agrees to transfer to Purchaser from the ILF Program Three Hundredths (0.03) Aquatic Resource Credit in the Northeast Sacramento River Watershed Service Area (“Purchased Credits”) for the purchase price of Thirty-Seven Thousand One Hundred Fifty Dollars ($37,150) (“Purchase Price”). This Agreement is expressly conditioned upon the Program Sponsor’s receipt of the Purchase Price for said Purchased Credits, in accordance with this Agreement.

2. The sale and transfer of the Purchased Credits is not intended as a sale or transfer to Purchaser of a security, license, lease, easement, or possessory or non-possessory interest in real property, nor the granting of any interest in any of the foregoing.

3. Purchaser shall have no obligation or right whatsoever by reason of the purchase of the Purchased Credits, to support, pay for, monitor, report on, sustain, continue in perpetuity, or otherwise be obligated, informed, or liable for the success or continued expense or maintenance in perpetuity of the Purchased Credits transferred, or the ILF Program. The Program Sponsor shall be fully and completely responsible for satisfying any and all conditions placed on the Purchased Credits transferred and the ILF Program.

4. The Purchased Credits sold and transferred to Purchaser shall be non-transferable, nonassignable, non-returnable, and shall not be used as compensatory mitigation for any other Project or purpose, except as set forth herein.

5. Purchaser must pay and deliver the Purchase Price to the Program Sponsor by check or wire transfer (in accordance with written instructions provided to Purchaser from Program Sponsor) within sixty (60) days of the date of execution of this Agreement. If the Purchase Price is not received by Program Sponsor within such 60-day period, then at any time thereafter Program Sponsor may, unless and until the Purchase Price is received and accepted by Program Sponsor, terminate this Agreement at will by providing no less than three (3) days’ advance written notice to Purchaser of Program Sponsor’s intention to so terminate.

6. Upon receipt of the Purchase Price, (a) transfer of the Purchased Credits shall be effectuated and evidenced by Program Sponsor’s delivery to Purchaser of an executed bill of sale (“Bill of Sale”) in substantially the form attached hereto and marked Exhibit “B” and (b) Program Sponsor’s receipt of the Purchase Price shall be confirmed and evidenced by Program Sponsor’s delivery to Purchaser of a completed payment receipt (“Payment Receipt”) in substantially the form attached hereto and marked Exhibit “C.”

7. After delivering the Bill of Sale and Payment Receipt in accordance with Section 6 above, the Program Sponsor shall submit to the Agencies, final, executed copies of: (a) this Agreement; (b) the Bill of Sale; (c) the Payment Receipt; and (d) an updated Credit Ledger (as defined under the Instrument) reflecting the transfer of the Purchased Credits to the Purchaser.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

PROGRAM SPONSOR:

National Fish and Wildlife Foundation
By: Date:

Robert Polin, Vice President, IDEA
Packet Pg. 77
Attachment: Example Credit Transfer Agreement (4.11(c)--Mitigation Agreements) 3 PURCHASER:

City of Redding
By: Date:

Packet Pg. 78
Attachment: Example Credit Transfer Agreement (4.11(c)--Mitigation Agreements)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept an update regarding the City’s Water Utility Pump Station 1 Replacement Project located along the Sacramento River.

Fiscal Impact
The total cost of the Pump Station 1 Replacement Project (Project) is currently estimated at approximately $74 million, as summarized in the following table.

Cost Summary
Item Estimated
Project Development Costs to Date $7,400,000
Remaining Development Costs through Bid $800,000
Purchase of Environmental Mitigation Credits $1,000,000 Construction Contract + Contingency $58,164,000
Contract Administration, Inspection, Testing $6,500,000 Post Construction Monitoring $250,000
Total Project Costs $74,114,000
The City of Redding’s Water Utility (Utility) has funded all Project costs to date with Utility funds.

Staff and the design consultant have applied for five grants and two loans for the Project. It was not selected for three of the five grants, and two grant applications remain under review. The two loan applications included:
x A low-interest loan for $50 million through the State Water Resources Control Board (SWRCB) Drinking Water State Revolving Fund (SRF) program; and x A $40 million loan through the U.S. Environmental Protection Agency Water Infrastructure Finance and Innovation Act (WIFIA) program.

MEETING DATE: August 18, 2026
ITEM NO. 9.11(h)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.11(h)--Consider report providing an update for the City of Redding (City) Pump Station 1 Replacement Project.

Michael Webb, Interim City
Manager/Public Works
Director

APPROVED
Packet Pg. 79
Attachment: Previous Staff Report 8-18-2026 (4.11(c)--Mitigation Agreements) Report to Redding City Council August 11, 2026
Re: 9.11(h)--Accept Update for Pump Station 1 Replacement Project Page 2 SWRCB staff have indicated that the Project will very likely be included in their fiscal year 2026-2027 funding list and receive the full $50 million SRF loan. Although WIFIA invited the City to submit a full loan application, staff elected not to proceed with the WIFIA loan after determining that the SRF loan would cover the majority of project costs at a lower interest rate.

The following table summarizes grants that were not awarded and the WIFIA loan that staff does not intend to pursue:

Grants/Loans Not
Awarded or Not Being
Pursued
Funding
Type
Council
Approval
Request
Amount Status
United States Fish and
Wildlife Service (USFWS)
- National Fish Passage
Program Grant 9/19/2023 $2 M
Submitted Pre-App. Not
Selected.

California Wildlife
Conservation Board
(WCB) - Stream Flow
Enhancement Program Grant 9/19/2023 $5 M
Submitted Pre-App. Not
Selected.

California Department of
Fish and Wildlife (CDFW)
- FRGP Grant 4/1/2025 $6 M Submitted app. Not Selected
WIFIA Loan 3/21/2024 $40 M
Approved for full
application, will not proceed
with program
The table below summarizes grants and loans that may still provide funding for the Project:

Potential Grant/Loan
Funding
Type
Council
Approval
Request
Amount Status
National Marine Fisheries
Service (NMFS) -
Transformational Habitat
Restoration and Coastal
Resilience Program Grant 9/19/2023 $7.7 M
Submitted Application.

Awaiting response.

SWRCB - SRF Loan 9/19/2023 $50 M
SWRCB indicated that
Project should receive
$50M
U.S. Department of
Transportation Federal
Highway Administration
Culvert Aquatic Organism
Passage Grant 3/21/2024 $9.5 M
Submitted Application.

Awaiting response.

Total: $67.2 M
There has been a high level of competition for grant funding opportunities thus far, and it is unknown at this time whether either of the two remaining grant applications will result in funding for the project.

APPROVED
Packet Pg. 80
Attachment: Previous Staff Report 8-18-2026 (4.11(c)--Mitigation Agreements) Report to Redding City Council August 11, 2026
Re: 9.11(h)--Accept Update for Pump Station 1 Replacement Project Page 3 Based on the total estimated project cost of $74 million, approximately $7.4 million in project costs incurred to date, and the anticipated $50 million SRF loan, approximately $16.6 million in project costs remain unfunded. Staff is considering the following alternatives to fund the balance:

1. Utilizing Water Utility reserves; and

2. Issuance of municipal bonds.

The Utility currently has approximately $62 million in reserves that could be used, although $42 million is earmarked for other projects. These elevated reserve levels are primarily due to delays in capital improvement project delivery. Utilizing reserves to fund at least the first year of construction would provide flexibility to determine actual construction costs and whether either of the outstanding grant applications receive funding.

Issuing municipal bonds could preserve Utility reserves, but would add to the long-term cost with fees and interest. In addition, bond issuance for amounts below approximately $20 million may not be feasible, so it may be necessary for the Water Utility to bundle other large projects into a bond issuance.

At this time, staff intends to proceed with the $50 million SRF loan, advertise the Project for construction bids in fall/winter 2026, and return to Council at the time of the construction contract award with a budget resolution to fund the remaining project balance using Utility funds. If, during the multi-year construction period, staff determines that issuing municipal bonds would be beneficial for remaining construction costs or other large capital projects, staff will return to Council with a recommendation or request at that time.

Background/Analysis
The City’s Pump Station 1, located on the Sacramento River, will be completely replaced and relocated upriver because it has reached the end of its service life (87 years old), its current location is in a shallow portion of the river that significantly limits its pumping capacity during low river levels, and its capacity will not meet expected future demands.

On September 19, 2023, March 21, 2024, April 1, 2025, and June 3, 2025, the Council approved the City as an applicant and increased funding request amounts for five grants and two loans associated with the Project, including an SRF loan through the SWRCB. On September 19, 2023, the Council also adopted a resolution authorizing the City to apply for funding through the SWRCB.

Environmental Review
This action is not a project as defined by the California Environmental Quality Act, and no further action is required. On April 22, 2025, the Planning Commission conducted a public hearing and upon conclusion adopted Resolution number 2025-01 certifying the Environmental Impact Report (EIR-2025-00478), thereby adopting the Findings of Fact and Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program; and approved Use Permit Application UP-2024-01017 for the Pump Station 1 Replacement Project.

APPROVED
Packet Pg. 81
Attachment: Previous Staff Report 8-18-2026 (4.11(c)--Mitigation Agreements) Report to Redding City Council August 11, 2026
Re: 9.11(h)--Accept Update for Pump Station 1 Replacement Project Page 4 Council Priority/City Manager Goals
x Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
x 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.” x 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
Location Map
Previous Staff Reports (multiple)

APPROVED
Packet Pg. 82
Attachment: Previous Staff Report 8-18-2026 (4.11(c)--Mitigation Agreements) 1 AGREEMENT FOR SALE OF CONSERVATION CREDITS

FREMONT LANDING CONSERVATION BANK
NMFS File No. WCRO-2021-02995
This Agreement is made and entered into this _______ day of October, 2023 by and between RIPARIAN RANCH, LLC, a California limited liability company (“Bank Owner”) and the CITY OF REDDING, a municipal corporation (“Project Proponent”) as follows:

RECITALS
A. The Bank Owner has entitlements to the Fremont Landing Conservation Bank (“Bank”) located in Yolo County California; and
B. The Bank has been authorized by the National Marine Fisheries Service (“NMFS”) to operate as a conservation bank with conservation credits available for sale; and C. Project Proponent is seeking to implement the project described on Exhibit “A” attached hereto (“Project”), which would unavoidably and adversely impact habitat thereon, and seeks to compensate for the loss of habitat by purchasing conservation credits from Bank Owner; and
D. Project Proponent has been authorized by NMFS Biological Opinion File No.

WCRO-2021-02995 to purchase 1.25 acres of salmonid or riparian habitat credits for the loss of

0.83 acres of riparian habitat and 0.45 acre of salmonid or shaded riparian aquatic (“SRA”) credits for the permanent loss of aquatic habitat associated with the Project; and E. Project Proponent desires to purchase from Bank Owner and Bank Owner desires to sell to Project Proponent 1.7 acre of conservation credits, comprised of 1.25 riparian floodplain forest/salmonid habitat restoration (non-SRA riparian) conservation credits and 0.45 riparian floodplain forest/salmonid/SRA habitat restoration (SRA) conservation credits at Bank.

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. Bank Owner hereby agrees to sell to Project Proponent and Project Proponent hereby agrees to purchase from Bank Owner 1.7 acres of conservation credits, comprised of 1.25 riparian floodplain forest/salmonid habitat restoration (non-SRA riparian) conservation credits and 0.45 riparian floodplain forest/salmonid/SRA habitat restoration (SRA) conservation credits (collectively, the “Conservation Credits”) for the purchase price of $297,500.00 (“Purchase Price”), in accordance with the terms hereof. The Purchase Price for the Conservation Credits shall be paid by wire transfer of funds or by check payable to “Riparian Ranch, LLC.” Upon receipt of the Purchase Price, Bank Owner will deliver to Project Proponent an executed Bill of Sale in the form attached hereto as Exhibit “B.”
Packet Pg. 83
Attachment: Example Mitigation Bank Agreement (4.11(c)--Mitigation Agreements) 2 2. The sale and transfer herein is not intended as a sale or transfer to Project Proponent of a security, license, lease, easement, or possessory or non-possessory interest in real property, nor the granting of any interest of the foregoing.

3. Project Proponent shall have no obligation whatsoever by reason of the purchase of the Conservation Credits, to support, pay for, monitor, report on, sustain, continue in perpetuity, or otherwise be obligated or liable for the success or continued expense or maintenance in perpetuity of the Conservation Credits sold, or the Bank. As required by law, Bank Owner shall monitor and make reports to the appropriate agency or agencies on the status of any Conservation Credits sold to Project Proponent. Bank Owner shall be fully and completely responsible for satisfying any and all conditions placed on the Bank or the Conservation Credits, by all state or federal jurisdictional agencies. Bank Owner hereby shall indemnify Project Proponent of and from all such liabilities and obligations.

4. The Conservation Credits sold and transferred to Project Proponent shall be nontransferable and non-assignable, and shall not be used as conservation mitigation for any other Project or purpose, except as set forth herein.

5. Project Proponent must deliver the Purchase Price to Bank Owner within 30 days of the date of this Agreement. After the 30-day period this Agreement be considered null and void and Bank Owner shall have no further obligations hereunder.

6. Upon purchase of the Conservation Credits specified above, Bank Owner shall complete the payment receipt form attached hereto as Exhibit “C,” and shall submit the completed payment receipt to NMFS.

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.

BANK OWNER
RIPARIAN RANCH, LLC, a California limited liability company By: _______________________________________
Name: Mark Heintz
Its: Manager

PROJECT PROPONENT
CITY OF REDDING, a municipal corporation
By: _______________________________________
Name:

Its:

Packet Pg. 84
Attachment: Example Mitigation Bank Agreement (4.11(c)--Mitigation Agreements) Packet Pg. 85
Attachment: Previous Staff Report 7-21-2026 (4.11(c)--Mitigation Agreements) Packet Pg. 86
Attachment: Previous Staff Report 7-21-2026 (4.11(c)--Mitigation Agreements) Packet Pg. 87
Attachment: Previous Staff Report 7-21-2026 (4.11(c)--Mitigation Agreements) Packet Pg. 88
Attachment: Previous Staff Report 7-21-2026 (4.11(c)--Mitigation Agreements) Packet Pg. 89
Attachment: Previous Staff Report 1-20-2026 (4.11(c)--Mitigation Agreements) Packet Pg. 90
Attachment: Previous Staff Report 1-20-2026 (4.11(c)--Mitigation Agreements)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Consulting and Professional Services Contract (C8541) (Contract) for the Pump House 1 Replacement Project:
(1) Authorize the City Manager, or designee, to execute the Seventh Amendment to Consultant and Professional Services Contract with Jacobs Engineering Group, Inc., for additional engineering and environmental services for an amount of $680,150, increasing the total contract amount to $7,757,090; and
(2) Authorize the City Manager, or designee, to approve additional contract amendments notto-exceed a total of $200,000.

Fiscal Impact
The total Pump Station 1 Replacement Project (Project) costs are currently estimated to be approximately $73 million. City of Redding (City) staff intends to obtain state and federal grants and loans to fund the majority of the project costs. Project costs in excess of grant and loan funds received, as well as costs for the local matches associated with the grants and interest or fees associated with the loans, will come from the City’s Water Utility (Utility) Fund.

The project is included in the Utility’s current Capital Improvement Program. The Utility has been setting aside six percent of annual revenues for several years and has saved approximately $16.5 million for the project to date.

MEETING DATE: December 2, 2025
ITEM NO. 4.11(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(b)--Authorize Seventh Amendment to Consulting and Professional Services Contract C-8541 for the Pump House 1 Replacement Project Michael Webb, Public Works
Director
Packet Pg. 91
Attachment: Previous Staff Report 12-2-2025 (4.11(c)--Mitigation Agreements) Report to Redding City Council November 26, 2025
Re: 4.11(b)--Authorize Seventh Amendment to Consulting and Professional Services Contract C-8541 Page 2

Alternative Action
The City Council (Council) may choose not to approve this amendment to the Consulting and Professional Services Contract C-8541 (Contract) with Jacobs Engineering Group, Inc., (Jacobs) and provide staff with an alternative direction, in which case Jacobs’s existing contract budget will not be sufficient for it to complete the necessary environmental documents, loan applications, design necessary additions and changes, and complete engineering services through the duration of the project construction.

Background/Analysis
The City’s Pump Station 1 will be completely replaced and relocated upriver because it has reached the end of its service life, its current location is in a shallow portion of the Sacramento River that significantly limits its capacity during low river levels, and its capacity will not meet expected future demands.

Design services for the project have been separated into two phases:
x Phase 1 included preliminary design services to evaluate project alternatives and prepare a preliminary design report with recommendations.
x Phase 2 includes environmental permitting, project funding assistance, right-of-way acquisition, final design, and engineering services during bidding and construction.

On May 5, 2020, the Council authorized execution of Consulting and Professional Services Contract C-8541 for $488,829 with Jacobs for Phase 1. During Phase 1, three amendments were executed for additional geotechnical investigation. The Third Amendment, approved by Council on July 20, 2021, increased the total contract amount to $1,089,246.

In July 2022, Jacobs completed Phase 1 by delivering the Preliminary Design Report, which recommended replacing and relocating Pump Station 1 approximately 1,600 feet upriver (west) of the existing location. Staff subsequently negotiated the scope and fee for Phase 2 design services, and a Fourth Amendment was required to extend the contract term during those negotiations.

On March 7, 2023, the Council authorized execution of the Fifth Amendment to the Contract for Jacobs to proceed with Phase 2, increasing the contract total to $6,584,764 and granting the City Manager to approve additional amendments up to $500,000.

In April 2024, the City Manager authorized the Sixth Amendment, adding $492,176 for work outside Jacobs’s original scope. This additional work included preparing a City of Redding Use Permit application, preparing additional grant applications, and developing new design elements for restoring Jenny Creek to an open channel in the project area. The creek restoration work required significantly more design effort, including the design of two new bridges over Jenny Creek for the Sacramento River Trail and the proposed access road. The Sixth Amendment increased the contract total to $7,076,940.

Jacobs has completed the design through the 90-percent phase and is currently preparing bid documents and environmental permits. The proposed Seventh Amendment addresses tasks that are outside the current contract scope, including:

Packet Pg. 92
Attachment: Previous Staff Report 12-2-2025 (4.11(c)--Mitigation Agreements) Report to Redding City Council November 26, 2025
Re: 4.11(b)--Authorize Seventh Amendment to Consulting and Professional Services Contract C-8541 Page 3

x Additional and unanticipated environmental compliance services required for construction through U.S. Bureau of Reclamation land adjacent to the Sacramento River Trail;
x Additional project funding assistance for preparation of the full Water Infrastructure Finance and Innovation Act loan application;
x Additional design services to provide a separate operations building, larger fish screens for added redundancy, additional landscaping and irrigation, and electrical and instrumentation changes; and
x Additional hydraulic modeling and analysis and design changes required by the Central Valley Flood Protection Board.

Approval of the Seventh Amendment to the Contract would increase Jacobs’s total contract amount to $7,757,090, which is just under 15 percent of the current construction cost estimate of $52,875,771 (before contingencies). Staff believes this fee is reasonable given the size and complexity of the required environmental and design services. The attached Seventh Amendment has been reviewed and approved as to form by the City Attorney.

Environmental Review
This action is not a project as defined by the California Environmental Quality Act, and no further action is required. The design and technical studies will provide the information necessary to ensure environmental compliance as the project progresses.

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

Attachments
^Location Map
^Seventh Amendment to Consulting and Professional Services Agreement with Jacobs Engineering (C-8541)
Sixth Amendment to C-8541
Previous Staff Report- May 5, 2020
C-8541 - Jacobs Engineering Group
First Amendment to C-8541
Second Amendment to C-8541
Third Amendment to C-8541
Fourth Amendment to C-8541
Fifth Amendment to C-8541
Packet Pg. 93
Attachment: Previous Staff Report 12-2-2025 (4.11(c)--Mitigation Agreements)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Conduct a Public Hearing and, upon conclusion:
(1) Introduce Ordinance amending Redding Municipal Code Title 14 (Utilities), Chapter

14.08 (Water) by adopting Section 14.08.005 (Definitions) and Section 14.08.390 (Nonfunctional Turf), for first reading by title only, and waive the full reading; (2) Direct the City Attorney to prepare a summary ordinance, and authorize the City Clerk to publish the summary ordinance according to law; and
(3) Find that this action is exempt from environmental review under the California Environmental Quality Act, pursuant to Section 15061(b)(3) – Common Sense Exemption.

Fiscal Impact
Implementation of any mandatory conservation measures will require public outreach and additional staff time. Although the costs to implement the measures are not exactly known, the Water Utility budget already funds a Water Conservation Specialist position. Tasks associated with this legislation will be incorporated into the duties of that position.

In addition, the related anticipated but unknown reduction in consumer water use from continued conservation efforts will result in an unknown loss in water commodity sales revenue potentially impacting Water Utility operations and implementation of its capital improvement plan.

Alternative Action
The City Council may choose not to approve the ordinance amending Redding Municipal Code Chapter 14.08 and provide alternative direction to staff.

MEETING DATE: October 6, 2026
ITEM NO. 6.1
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 6.1--Public Hearing to consider Ordinance amending Title 14 (Utilities) to define Nonfunctional Turf pursuant to Assembly Bill 1572.

Michael Webb, Interim City
Manager/Public Works
Director
Packet Pg. 94
Report to Redding City Council September 29, 2026
Re: 6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance Page 2 Background/Analysis
The California Legislature adopted Assembly Bill (AB) 1572 to prohibit the use of potable water for irrigating nonfunctional turf. The Governor’s August 2022 report stated that climate change will cause significant, enduring reductions in the state’s water supply, requiring immediate and sustained action. In alignment with this declaration, and following Nevada’s precedent of banning Colorado River water use for nonfunctional turf irrigation, the Legislature passed AB 1572, prohibiting the irrigation of nonfunctional turf with potable water on commercial, industrial, and institutional properties including homeowners’ association (HOA) common areas.

For water suppliers, AB 1572 introduces both regulatory responsibilities and customer obligations. Beginning in 2027, public water systems must revise policies, ordinances, and regulations to align with the law and communicate the requirements to all affected customers.

Customer compliance will be phased in over several years, with deadlines tailored to different property types.

ENTITIES REQUIRED TO COMPLY
2027: State and most local government/public agency properties. 2028: All commercial, industrial, and remaining institutional properties. 2029: HOA’s, common interest developments, and community service organizations (common areas).
2031 (or the date upon which a state funding source is made available): Public agency properties in disadvantaged communities (City of Redding).

AB 1572 also establishes ongoing compliance obligations for larger properties. Owners of noncemetery commercial, industrial and institutional sites with more than 5,000 square feet of irrigated turf must certify compliance beginning in 2030, while HOAs and similar entities with large common areas must certify beginning in 2031. Certifications will recur every three years through 2039 or 2040, depending on property type. Certifications will be submitted to the State Water Resources Control Board. Importantly, the law provides clear exemptions:

1. Potable water may still be used to protect the health of trees and perennial plantings or to address immediate health and safety concerns;

2. Cemeteries are not subject to these restrictions; and

3. The State Water Resources Control Board also has the authority to extend compliance deadlines for up to three years in cases of economic hardship, critical business needs, or public health and safety concerns.

Environmental Review
Staff has reviewed this action and determined that it is exempt from environmental review under the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3) – Common Sense Exemption. CEQA applies only to projects which have the potential for causing a significant effect on the environment. The action has been reviewed and it can be seen with certainty that there is no possibility that the action may have a significant effect on the environment; therefore, the activity is not subject to CEQA.

Packet Pg. 95
Report to Redding City Council September 29, 2026
Re: 6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance Page 3 Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
ORDINANCE - Clean
ORDINANCE - Strikeout
NOE Amendment to RMC Title 14 (Water)
Packet Pg. 96

DRAFT NEW ORDINANCE
1 ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
REDDING AMENDING TITLE 14 (UTILITIES), CHAPTER 14.08
(WATER) BY ADOPTING SECTIONS 14.08.005 (DEFINITIONS) AND

14.08.390 (NONFUNCTIONAL TURF) PROHIBITING THE USE OF

POTABLE WATER FOR THE IRRIGATION OF NONFUNCTIONAL

TURF ON COMMERCIAL, INDUSTRIAL, AND INSTITUTIONAL
(CII) PROPERTIES, HOMEOWNERS’ ASSOCIATIONS (HOAS),

COMMON INTEREST DEVELOPMENTS (CIDS), AND

COMMUNITY SERVICE ORGANIZATIONS, IN COMPLIANCE
WITH ASSEMBLY BILL 1572 (AB 1572) AND CALIFORNIA WATER
CODE § 10608.14
WHEREAS, the State of California has determined that the use of potable water for the irrigation of nonfunctional turf (NFT) contributes to inefficient water use and conflicts with long-term water sustainability goals; and
WHEREAS, Assembly Bill 1572 (AB 1572), signed into law on October 13, 2023, establishes a timeline for banning potable water irrigation of NFT across commercial, industrial, institutional, and residential common areas; and WHEREAS, public water suppliers are required to revise their ordinances, regulations, or policies by January 1, 2027, and communicate these changes to their customers to comply with the AB 1572 regulations; and
WHEREAS, Under California Water Code Section 3758, City of Redding has the authority to establish water conservation programs and prohibit wasteful uses of water;

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

14.08.005 Definitions
For the purpose of this chapter, certain words and phrases shall be construed as set forth in this section unless it is apparent from the context that a different meaning is intended.

Section 1. Title 14 (Utilities), Chapter 14.08 (Water) Section 14.08.005 is hereby adopted, incorporating the existing definitions sections, currently unnumbered, and adding the following new definitions, to read in its entirety as follows:

A. "AWWA" means the American Water Works Association.

B. “Common area” means that portion of a common interest development or of a property owned or managed by a homeowners’ association or a community service Packet Pg. 97
Attachment: ORDINANCE - Clean (6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance)

DRAFT NEW ORDINANCE
2 organization or similar entity that is not assigned or allocated to the exclusive use of the occupants of an individual dwelling unit within the property.

C “Common interest development” has the same meaning as in Section 4100 of the Civil Code.

D. “Community service organization or similar entity” has the same meaning as in Section 4110 of the Civil Code.

E. "Cross-connection" means any actual or potential connection between a public water supply and a source of contamination or pollution.

F. "Customer" means any person or persons, all entities, public or private, residential, industrial, commercial, governmental or institutional, who receive water as defined by the California State Department of Health Services, Division of Drinking Water, as either potable or reclaimed at a service connection, fire hydrant, or fire service system that is further defined by the RMC.

G. "Director" means the Director of the Public Works Department or his or her designee.

H. “Disadvantaged community” means a community with an annual median household income that is less than 80 percent of the statewide annual median household income.

I. "Distribution mains" means city water lines in streets and rights-of-way used for general distribution of water from which service is available to the customer.

J. “Functional turf” means a ground cover surface of turf located in a recreational use area or community space. Turf enclosed by fencing or other barriers to permanently preclude human access for recreation or assembly is not functional turf.

K. “Homeowners’ association” means an “association” as defined in Section 4080 of the Civil Code.

L. "Household equivalent" means any single-family residential premises served by a ⅝-inch or ¾-inch water meter and small commercial businesses served by a standard ⅝- inch meter. Household equivalents for larger meters, ¾-inch, 1-inch, 1½-inch, 2-inch, 3- inch, 4-inch, 6-inch and 8-inch, have been computed using the ratio of the larger meter's AWWA rated capacity to the AWWA's rated capacity of a standard ⅝-inch meter.

M. “Nonfunctional turf” means any turf that is not functional turf, and includes turf located within street rights-of-way and parking lots.

N. “Potable water” means water that is suitable for human consumption.

Packet Pg. 98
Attachment: ORDINANCE - Clean (6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance)

DRAFT NEW ORDINANCE
3 O. "Premises" means an improved lot, piece or parcel of land or a legally divisible portion thereof.

P. "Private fire protection service" relates to fire hydrants and/or fire sprinkler systems located on private property that are connected to the city's water distribution mains.

Q. “Public water system” has the same meaning as defined in Section 116275 of the Health and Safety Code.

R. "Service area" means that area set forth in the U.S. Bureau of Reclamation Contract No. 14-06-200-5272A-P and as amended by any subsequent amendments.

S. "Service connection" means the pipeline and appurtenant facilities, such as the meter valve, meter and meter box, used to extend water service from the distribution main to the premises. Where services are divided at the curb or property line to serve several customers, each such branch service shall be termed a separate water service.

T. "Special benefit charge" means a charge applied to developing properties in addition to the normal connection charges to finance master water plan projects in water storage, transmission and supply where deficiencies are uniquely confined to specific geographical areas.

U. “Turf” has the same meaning as defined in Section 491 of Title 23 of the California Code of Regulations.

V. "Water service" means water for normal domestic, commercial, industrial or irrigation purposes on a permanent basis and for which the general rates and regulations are applicable.

X. "Water Utility" means the division which constructs, operates and maintains the city water distribution system and treatment facilities.

Section 2. Title 14 (Utilities), Chapter 14.08 (Water) Section 14.08.390 (NonFunctional Turf) is adopted to read in its entirety as follows:

14.08.390 Nonfunctional Turf
(a) The use of potable water for the irrigation of nonfunctional turf located on commercial, industrial, and institutional properties, other than a cemetery, and on properties of homeowners' associations, common interest developments, and community service organizations or similar entities is prohibited as of the following dates:
l. All properties owned by the Department of General Services, beginning January 1, 2027.

Packet Pg. 99
Attachment: ORDINANCE - Clean (6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance)

DRAFT NEW ORDINANCE
4 2. All properties owned by local governments, local or regional public agencies, and public water systems, except those specified in paragraph (5), beginning January 1, 2027.

3. All other institutional properties and all commercial and industrial properties, beginning January 1, 2028.

4. All common areas of properties of homeowners' associations, common interest developments, and community service organizations or similar entities, beginning January 1, 2029.

5. All properties owned by local governments, local public agencies, and public water systems in a disadvantaged community, beginning January 1, 2031, or the date upon which a state funding source is made available to fund conversion of nonfunctional turf on these properties to climate-appropriate landscapes, whichever is later.
(b) Notwithstanding subdivision (a), the use of potable water is not prohibited by this section to the extent necessary to ensure the health of trees and other perennial non-turf plantings; or to the extent necessary to address an immediate health and safety need such as fire suppression or erosion control.

Section 3. The Council hereby finds and determines that the enactment of this ordinance is exempt from review pursuant to the California Environmental Quality Act (Public Resources Code section 21000 et seq.) (“CEQA”) because it has no potential to result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. This Ordinance is exempt from CEQA pursuant to the “common sense” exemption (14 CCR 15061(b)(3)), as it can be seen with certainty that there is no possibility that the adoption of the Ordinance will have a significant effect on the environment.

Section 4. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision will remain in effect to the extent permitted by law.

Section 5. This Ordinance shall take effect thirty (30) calendar days after the date of its adoption, and the City Clerk shall certify the adoption thereof and cause publication according to law.

Packet Pg. 100 Attachment: ORDINANCE - Clean (6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance)

DRAFT NEW ORDINANCE
5 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 6th day of October, 2026, and was duly read and adopted at a regular meeting on the 20th day of October, 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 MARY A. WAGNER
Interim City Attorney
Packet Pg. 101 Attachment: ORDINANCE - Clean (6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance) 1 STRIKEOUT ORDINANCE
OLD LANGUAGE: STRUCK OUT
NEW LANGUAGE: UNDERLINE

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REDDING AMENDING TITLE 14 (UTILITIES), CHAPTER 14.08 (WATER) BY ADOPTING SECTIONS 14.08.005 DEFINITIONS AND 14.08.390 (NONFUNCTIONAL TURF) PROHIBITING THE USE OF

POTABLE WATER FOR THE IRRIGATION OF NONFUNCTIONAL TURF ON

COMMERCIAL, INDUSTRIAL, AND INSTITUTIONAL (CII) PROPERTIES, HOMEOWNERS’ ASSOCIATIONS (HOAS), COMMON INTEREST DEVELOPMENTS (CIDS), AND COMMUNITY SERVICE ORGANIZATIONS, IN COMPLIANCE WITH ASSEMBLY BILL 1572 (AB 1572) AND CALIFORNIA WATER CODE § 10608.14.

14.08.005 Definitions
For the purpose of this chapter, certain words and phrases shall be construed as set forth in this section unless it is apparent from the context that a different meaning is intended.

Section 1. Title 14 (Utilities), Chapter 14.08 (Water) Section 14.08.005 is hereby adopted, incorporating the existing definitions sections, currently unnumbered, and adding the following new definitions, to read in its entirety as follows:

A. "AWWA" means the American Water Works Association.

B. “Common area” means that portion of a common interest development or of a property owned or managed by a homeowners’ association or a community service organization or similar entity that is not assigned or allocated to the exclusive use of the occupants of an individual dwelling unit within the property.

C. “Common interest development” has the same meaning as in Section 4100 of the Civil Code.

D. “Community service organization or similar entity” has the same meaning as in Section 4110 of the Civil Code.

E. "Cross-connection" means any actual or potential connection between a public water supply and a source of contamination or pollution.

F. "Customer" means any person or persons, all entities, public or private, residential, industrial, commercial, governmental or institutional, who receive water as defined by the Packet Pg. 102 Attachment: ORDINANCE - Strikeout (6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance) 2 California State Department of Health Services, Division of Drinking Water, as either potable or reclaimed at a service connection, fire hydrant, or fire service system that is further defined by the RMC.

G. "Director" means the Director of the Public Works Department or his or her designee.

H. “Disadvantaged community” means a community with an annual median household income that is less than 80 percent of the statewide annual median household income.

I. "Distribution mains" means city water lines in streets and rights-of-way used for general distribution of water from which service is available to the customer.

J. “Functional turf” means a ground cover surface of turf located in a recreational use area or community space. Turf enclosed by fencing or other barriers to permanently preclude human access for recreation or assembly is not functional turf.

K. “Homeowners’ association” means an “association” as defined in Section 4080 of the Civil Code.

L. "Household equivalent" means any single-family residential premises served by a ⅝-inch or ¾-inch water meter and small commercial businesses served by a standard ⅝-inch meter.

Household equivalents for larger meters, ¾-inch, 1-inch, 1½-inch, 2-inch, 3-inch, 4-inch, 6-inch and 8-inch, have been computed using the ratio of the larger meter's AWWA rated capacity to the AWWA's rated capacity of a standard ⅝-inch meter.

M. “Nonfunctional turf” means any turf that is not functional turf, and includes turf located within street rights-of-way and parking lots.

N. “Potable water” means water that is suitable for human consumption.

O. "Premises" means an improved lot, piece or parcel of land or a legally divisible portion thereof.

P. "Private fire protection service" relates to fire hydrants and/or fire sprinkler systems located on private property that are connected to the city's water distribution mains.

Q. “Public water system” has the same meaning as defined in Section 116275 of the Health and Safety Code.

R. "Service area" means that area set forth in the U.S. Bureau of Reclamation Contract No. 14-06-200-5272A-LTR1P and as amended by any subsequent amendments.

S. "Service connection" means the pipeline and appurtenant facilities, such as the meter valve, meter and meter box, used to extend water service from the distribution main to the Packet Pg. 103 Attachment: ORDINANCE - Strikeout (6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance) 3 premises. Where services are divided at the curb or property line to serve several customers, each such branch service shall be termed a separate water service.

T. "Special benefit charge" means a charge applied to developing properties in addition to the normal connection charges to finance master water plan projects in water storage, transmission and supply where deficiencies are uniquely confined to specific geographical areas.

U. “Turf” has the same meaning as defined in Section 491 of Title 23 of the California Code of Regulations.

V. "Water service" means water for normal domestic, commercial, industrial or irrigation purposes on a permanent basis and for which the general rates and regulations are applicable.

X. "Water Utility" means the division which constructs, operates and maintains the city water distribution system and treatment facilities.

Section 2. Title 14 (Utilities), Chapter 14.08 (Water) Section 14.08.390 (Non-Functional Turf) is adopted to read in its entirety as follows:

14.08.390 Nonfunctional Turf
(a) The use of potable water for the irrigation of nonfunctional turf located on commercial, industrial, and institutional properties, other than a cemetery, and on properties of homeowners' associations, common interest developments, and community service organizations or similar entities is prohibited as of the following dates:

1. All properties owned by the Department of General Services, beginning January 1, 2027.

2. All properties owned by local governments, local or regional public agencies, and public water systems, except those specified in paragraph (5), beginning January 1, 2027.

3. All other institutional properties and all commercial and industrial properties, beginning January 1, 2028.

4. All common areas of properties of homeowners' associations, common interest developments, and community service organizations or similar entities, beginning January 1, 2029.

5. All properties owned by local governments, local public agencies, and public water systems in a disadvantaged community, beginning January 1, 2031, or the date upon which a state funding source is made available to fund conversion of nonfunctional turf on these properties to climate-appropriate landscapes, whichever is later.

Packet Pg. 104 Attachment: ORDINANCE - Strikeout (6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance) 4 (b) Notwithstanding subdivision (a), the use of potable water is not prohibited by this section to the extent necessary to ensure the health of trees and other perennial non-turf plantings; or to the extent necessary to address an immediate health and safety need such as fire suppression or erosion control.

Section 3. The Council hereby finds and determines that the enactment of this ordinance is exempt from review pursuant to the California Environmental Quality Act (Public Resources Code section 21000 et seq.) (“CEQA”) because it has no potential to result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. This Ordinance is exempt from CEQA pursuant to the “common sense” exemption (14 CCR 15061(b)(3)), as it can be seen with certainty that there is no possibility that the adoption of the Ordinance will have a significant effect on the environment.

Section 4. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision will remain in effect to the extent permitted by law.

Section 5. This Ordinance shall take effect thirty (30) calendar days after the date of its adoption, and the City Clerk shall certify the adoption thereof and cause publication according to law.

Packet Pg. 105 Attachment: ORDINANCE - Strikeout (6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance) Packet Pg. 106
Attachment: NOE Amendment to RMC Title 14 (Water) (6.1--Public Hearing to amend RMC Title 14 - Nonfunctional Turf Ordinance)

CITY OF REDDING

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

Fiscal Impact
There is no fiscal impact related to accepting this report.

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

Background/Analysis
The Fiscal Year 2025-26 Financial Report, covering the period July 1, 2025, through June 30, 2026, shows that Redding Electric Utility (REU) performed better than budgeted. The favorable variance is primarily driven by lower-than-budgeted Power Costs and Generation/System Operations and Maintenance (O&M) expenses. O&M savings reflect continued management of personnel and operating costs throughout the fiscal year. Even with the elimination of positions and the corresponding reduction to the overall personnel budget, personnel expenditures remained below budget through overtime cost controls and the appropriate allocation of Line personnel costs associated with capital projects. These efforts, together with other costcontainment measures and operating efficiencies, contributed to the overall favorable O&M variance and REU’s stronger-than-budgeted financial performance for the fiscal year.

MEETING DATE: October 6, 2026
ITEM NO. 9.5(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(a)--Consider Redding Electric Utility's Fiscal Year 2025-26 Financial Report and Industry Activities Update.

Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 107
Report to Redding City Council September 30, 2026
Re: 9.5(a)--Redding Electric Utility's FY 2025-26 Financial Report Page 2 While the fiscal year-end results are favorable, they should be considered within the context of REU’s longer-term financial outlook. REU continues to evaluate opportunities for additional cost containment, operating efficiencies, and expenditure reductions; however, power supply and other operating costs are projected to increase in future years. The Utility must also continue to fund necessary capital investment, maintain adequate reserves, and meet established financial targets. Accordingly, even with continued efforts to identify and implement cost savings, the favorable FY 2025-26 results do not eliminate the need to address the Utility’s longer-term revenue requirements to maintain financial stability and support continued safe and reliable electric service.

Unrestricted reserves recovered strongly in June, increasing $8.9 million from May, primarily driven by $7.2 million in fourth-quarter bond reimbursements. Fiscal year-end unrestricted cash totaled $44.7 million, or 111 days of cash on hand, compared with $45.2 million, or 123 days, at the end of the prior fiscal year. The use of $22.4 million in one-time funds, including $19.6 million in bond proceeds and $2.8 million in Cap-and-Invest proceeds, bolstered unrestricted reserves by approximately 56 days of cash. Without these one-time funds, REU’s unrestricted cash balance would have been approximately 55 days of cash. Maintaining and rebuilding unrestricted reserves toward the target level of 150 days of cash remains an important component of REU’s long-term financial planning and overall financial stability.

Revenue
Billed retail revenue for Fiscal Year (July 2025 through June 2026) was $3,516,050 (2.4 percent) below budget, primarily reflecting differences between the assumptions used in developing the adopted budget and actual revenue realized during the fiscal year.

Total wholesale sales were $3,485,704 (23.5 percent) above budget, reflecting favorable market conditions and increased opportunities for wholesale energy sales during the fiscal year.

Miscellaneous income was $2,524,826 (132.9 percent) above budget, primarily driven by higherthan-budgeted investment and interest income, including approximately $1.5 million in fiscal agent investment income recorded for the fiscal year related to Electric Bond trustee accounts.

These earnings are generated on funds held by the trustee and increase restricted cash balances; while recorded as revenue, they are associated with bond-related accounts rather than operating activities.

As a result, overall operating revenue for the fiscal year was $2,494,480 (1.5 percent) above projections. Operating revenue after energy costs was $6,537,324 (8.1 percent) above budget, reflecting higher-than-budgeted wholesale sales revenue and lower overall energy-related costs.

Favorable cost variances included lower-than-budgeted costs related to generation, transmission, and Joint Powers Agency expenses, as well as savings in generation Administrative & General and O&M.

Packet Pg. 108
Report to Redding City Council September 30, 2026
Re: 9.5(a)--Redding Electric Utility's FY 2025-26 Financial Report Page 3 Expense
Power Cost (Cost of Energy)
The combined costs for generation, purchases from the Western Area Power Administration, Big Horn Wind Project, contracts, and the spot market were $4,042,845 (4.9 percent) below budget projections. A significant portion of this favorable variance resulted from using $2.8 million of the $3 million Energy Procurement Program authorized by the City Council in April 2026. The program uses Cap-and-Invest proceeds to purchase renewable energy credits. Because this funding reduced current-year costs with one-time funds, the variance should not be viewed as fully representative of underlying power-supply cost trends when preparing future forecasts.

The total Cost of Energy decreased by $8,123,386 (9.3 percent) year over year. The Cost of Energy for native load (Power Cost less Wholesale Sales) decreased by $2,721,775 year-overyear (4.3 percent), reflecting changes in net energy procurement and system operating conditions.

System Operations & Maintenance (O&M)
System O&M costs for the fiscal year were $6,061,156 (10.1 percent) below budget projections.

As noted previously, the favorable variance reflects, in part, the appropriate allocation of Line personnel costs associated with capital projects, as well as continued cost-containment efforts throughout the fiscal year. Savings were also realized through careful oversight of overtime, personnel and other operating expenditures, and ongoing efforts to identify efficiencies and reduce or defer costs where operationally appropriate.

Debt Service and Capital Outlay
Debt service payments and obligations for the fiscal year totaled $18,725,937. Capital expenditures totaled $19,812,528 (79.3 percent spent). These expenditures were funded through Electric System Revenue Bond proceeds, providing a dedicated source of financing for capital investments and preserving operating cash for ongoing utility operations.

Special Fund Expenditures
Special Fund Expenditures, which include spending on Public Benefit and Cap-and-Invest (formerly Cap-and-Trade) Programs, totaled $6,410,880 (representing 56.1 percent of the budget) for the fiscal year. The remaining budget will be carried over to fiscal year 2027 as required by statute.

Electric Utility Unrestricted Cash Balance
The unrestricted cash balance at the end of the fiscal year was $44.7 million, representing approximately 111 days of cash on hand. This level remained above the 75-day minimum established under the City Council’s Financial Management Policy (Council Policy 1414), but below the policy target of 150 days.

Packet Pg. 109
Report to Redding City Council September 30, 2026
Re: 9.5(a)--Redding Electric Utility's FY 2025-26 Financial Report Page 4 Director’s Contingency Fund
For the fiscal year, $96,500 (19.3 percent) of the REU Director’s Contingency Fund was utilized.

Expenditures primarily addressed unanticipated repairs and maintenance, safety needs, and environmental compliance requirements. Prudent budgeting and ongoing cost-containment efforts allowed REU to address other expenditure needs within existing appropriations, preserving contingency funding for unforeseen costs and operational needs.

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

Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
Attachments
Attachment 1 - Notes on Financial Operating Statement
Attachment 2 - Electric Utility Financial Results for Jun 2026 Attachment 3 - Electric Utility Financial Dashboard for Jun 2026 Attachment 4 - Electric Utility Financial Results by Major Exp. Groups for Jun 2026 Attachment 5 - Electric Utility Unrestricted Cash Balance Jun 2026 Attachment 6 - Electric Utility Industry Update for Jun 2026 Packet Pg. 110
Attachment 1
City of Redding Electric Utility
Notes to Financial Report
Notes on Financial Operating Statement
Operating revenues are divided into three revenue elements: Retail Sales are sales of electricity to end-use customers; Wholesale Sales are to customers who resell electricity; and Other Revenue, which includes the sale of services, joint-pole arrangements, interest income, and other miscellaneous revenue generated in the operations of Redding Electric Utility (REU).

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

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

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

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

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

Packet Pg. 111 Attachment: Attachment 1 - Notes on Financial Operating Statement (9.5(a)--Redding Electric Utility's FY 2025-26 Financial Report) ELECTRIC UTILITY PRELIMINARY FINANCIAL RESULTS - JUNE 30, 2026 YTD-Actual YTD-Budget Variance Variance YTD-Actual
June June % Value June
Item FY2026 FY2026 FY2026 FY2026 FY2025
Energy
System Load (MWh) 759,840 764,981 -0.7% (5,140) 783,446 Key Performance Indicators
Days Cash on Hand 111 123
Operating Revenues
Retail Sales 143,216,950 146,733,000 -2.4% (3,516,050) 143,170,997 Wholesale Sales 18,332,704 14,847,000 23.5% 3,485,704 23,734,315 Miscellaneous Income 4,424,326 1,899,500 132.9% 2,524,826 5,242,503 Total Operating Revenues 165,973,980 163,479,500 1.5% 2,494,480 172,147,815 Operating Expenses
Power Cost
Purchased Power 23,453,647 21,534,200 8.9% 1,919,447 26,250,094 Generation, Transmission and JPA (Variable) 28,711,457 30,675,200 -6.4% (1,963,743) 32,082,011 Generation A&G and O&M (Fixed) 27,020,579 31,019,127 -12.9% (3,998,548) 28,976,964 Subtotal Power Cost 83,228,527 79,185,682 -4.9% (4,042,845) 87,309,069 System O&M
General & Administrative1 7,526,631 6,158,418 -18.2% (1,368,213) 5,569,215 Interdepartmental (Incl. In-Lieu of Tax)1 11,825,160 11,828,720 0.0% 3,560 12,604,030 Transmission & Distribution1 37,483,507 32,787,004 -12.5% (4,696,503) 35,004,309 Customer & Field Services 3,415,360 3,415,360 0.0% - 3,169,667 Subtotal System O&M 54,189,502 60,250,658 -10.1% (6,061,156) 56,347,222 Total Operating Expenses 133,375,184 $ 143,479,185 $ -7.0% (10,104,001) $ 143,656,291 $ Net Operating Revenue 32,598,796 $ 20,000,315 $ 63.0% 12,598,481 $ 28,491,524 $ Total Debt Service 18,725,937 $ 18,748,800 $ 0% (22,863) $ 14,850,385 $ YTD-Actual Budget % of Budget Budget YTD-Actual
June Annual Spent Remaining June
Item FY2026 FY2026 FY2026 FY2026 FY2025
Capital Outlay
Capital Outlay (Revenue Funded)
Capital Outlay (Bond Funded)2 24,983,060 19,812,528 79.3% 5,170,532 14,651,637 Total Capital Outlay 19,812,528 $ 24,983,060 $ 79.3% 5,170,532 $ 14,651,637 $ Special Fund Expenditures
Public Benefit Programs 2,391,921 6,974,765 34.3% 4,582,844 2,368,344 Cap-and-Trade Programs 4,018,959 4,445,230 90.4% 426,271 239,256 Total Special Fund Expenditures 6, $ 11,419,995 410,880 $ 56.1% 5,009,115 $ 2,607,600 $ Financial Results (12,350,549) $ (3,618,097) $
CHANGES IN YTD-Budget FY2026:
1 Resolution No. 2026-018: Mid-year Budget modification reducing nine positions for a decrease of $1,527,560 and an increase in Interdepartmental of $82,470. 2 Resolution No. 2025-051 and 2026-02: Budget increase of $137,700 for Security Pipeline Fence Project and $425,000 for the Unit 9 FERc Relicense Project. 2 Includes $5,468,360 in FY2025 carryover.

Council Report
Packet Pg. 112 Attachment: Attachment 2 - Electric Utility Financial Results for Jun 2026 (9.5(a)--Redding Electric Utility's FY 2025-26 Financial Report) ELECTRIC UTILITY PRELIMINARY FINANCIAL DASHBOARD - JUNE 30, 2026 1.5 0.91.72.6 0.41.0 -0.5 -2.1 -2.3 -2.3 -3.0 -3.5 (5)
-
5 10
15 20

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

0.3 1.0

2.0 2.1

1.8 3.5
(2)
(1)
-
1 2
3 4
5 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$-Millions
Wholesale Sales ($-Millions)
Cumulative Difference 2025 Actual 2026 Actual 2026 Budget Packet Pg. 113 Attachment: Attachment 3 - Electric Utility Financial Dashboard for Jun 2026 (9.5(a)--Redding Electric Utility's FY 2025-26 Financial Report) ELECTRIC UTILITY PRELIMINARY FINANCIAL DASHBOARD - JUNE 30, 2026 -7.0 -7.4 -7.5-5.5 -6.6 -8.7 -9.0 -8.5 -9.3 -9.9 -9.4 (15)
-10.1
(10)
(5)
-
5 10
15 20
25 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$-Millions
Total Operating Expense ($-Millions)
Cumulative Difference 2025 Actual 2026 Actual 2026 Budget 0.4 0.0 1.4 2.8 0.81.3 0.50.81.61.8 1.0

2.5 -
2 4
6 8
10 12
14 16
18 20

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$-Millions
Total Operating Revenues ($-Millions)
Cumulative Difference 2025 Actual 2026 Actual 2026 Budget Packet Pg. 114 Attachment: Attachment 3 - Electric Utility Financial Dashboard for Jun 2026 (9.5(a)--Redding Electric Utility's FY 2025-26 Financial Report) Division Personnel
Materials,
Supplies &
Services
Capital
Outlay
Debt
Service Total
FY 2023-24 Actual 44,430,319 $ 105,765,883 $ 14,014,972 $ 14,298,520 $ 178,509,694 $ FY 2024-25 Actual 44,592,574 $ 101,671,317 $ 15,996,001 $ 14,762,143 $ 177,022,035 $ FY 2025-26 Adopted 47,610,841 $ 100,864,380 $ 18,952,000 $ 18,633,800 $ 186,061,021 $ FY 2025-26 Amended * 46,083,281 $ 100,946,850 $ 24,983,060 $ 18,633,800 $ 190,646,991 $ FY 2025-26 Actual 42,175,478 $ 97,610,587 $ 19,812,528 $ 18,725,937 $ 178,324,529 $ FY 2025-26 Budget Remaining 3,907,803 $ 3,336,263 $ 5,170,532 $ (92,137) $ 12,322,462 $ % of Budget Spent 91.5% 96.7% 79.3% 100.5% 93.5%
* FY 2025-26 Amended reflects Resolution No. 2026-018 (mid-year budget modification), reducing nine positions for a $1,527,560 decrease in Personnel, an $82,470 increase in Materials, Supplies & Services (Interdepartmental), and a $6,031,060 increase in Capital Outlay related to Resolution Nos. 2025-051 and 2026-02 ($562.700), and FY2025 carryover ($5,468,360).

ELECTRIC UTILITY PRELIMINARY FINANCIAL RESULTS - JUNE 30, 2026 Department's Budgets/Actuals Separated into Major Expenditure Groups Electric
Utility
Packet Pg. 115
Attachment: Attachment 4 - Electric Utility Financial Results by Major Exp. Groups for Jun 2026 (9.5(a)-- Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Unrestricted Cash - 2025-26 38.4 36.8 40.6 42.9 42.0 39.1 38.2 36.1 38.7 37.3 35.8 44.7Unrestricted Cash - 2024-25 33.5 38.5 38.9 34.3 33.2 32.6 33.4 36.6 35.8 54.4 48.1 45.2

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

REU UNRESTRICTED CASH BALANCE
JULY 2024 ‐ JUNE 2026
Packet Pg. 116
Attachment: Attachment 5 - Electric Utility Unrestricted Cash Balance Jun 2026 (9.5(a)--Redding Electric 1 City of Redding Electric Utility
Industry Activities Update —4th Quarter FY2026
Federal Update
Federal Energy Regulatory Commission (FERC) recently issued show-cause orders to the six jurisdictional regional grid operators, including California Independent System Operator (CAISO), requiring them to justify why current tariffs remain just and reasonable for large load interconnections or file for changes — part of the Commission's ongoing work on data center loads and Western market coordination. FERC also directed North American Electric Reliability Corporation (NERC) to file updated reliability standards addressing bulk-power system risks tied to integrating "large computational loads." REU continues working with California Municipal Utilities Association (CMUA) and Northern California Power Agency (NCPA) to monitor federal regulatory activity affecting the Western market.

Separately, the White House issued Executive Order (EO) 14420, "Declaring a National Emergency to Secure the United States Bulk-Power System (BPS)," citing foreign-made BPS equipment as a growing national security and supply chain risk. The EO directs the Department of Energy (DOE)to identify equipment tied to "Covered Foreign Entities" posing unacceptable security, reliability, cybersecurity, or supply chain risks and to issue implementing rules within 120 days, and to recommend Federal Acquisition Regulation revisions within 180 days to prioritize U.S.-manufactured equipment in federal energy procurement.

State Legislative Update
Following the summer recess, the Legislature focused heavily on wildfire mitigation legislation.

SB 492 (Becker/Petrie-Norris) emerged in the final days of the session, without several provisions previously under consideration, including the Governor’s proposal to eliminate insurers’ subrogation rights.

Of interest to POUs, SB 492 would:
 Establish a voluntary state-run Fast Pay program for utility-caused wildfire victims, available to POUs with an OEIS-approved wildfire mitigation plan;  Prohibit IOU executive bonuses in years their utility causes wildfire;  Restrict sale of wildfire claims/recovery rights to third-party equity firms; and  Limit attorney fees to a percentage of settlements in insurer subrogation cases; the provision does not appear to limit contingency fees for individual wildfire survivor claims.

The Assembly declined to pass SB 492 on the final day of the session amid concerns that the measure did not sufficiently address broader utility accountability issues. The Legislature is now in recess until December, with wildfire and utility reform expected to remain a legislative priority.

Packet Pg. 117 Attachment: Attachment 6 - Electric Utility Industry Update for Jun 2026 (9.5(a)--Redding Electric Utility's FY 2025-26 Financial Report) 2 State Regulatory Update
Cap-and-Invest: California Air Resources Board (CARB) approved 15-day language for the Capand-Invest program, providing REU with nearly 70,000 additional allowances for 2027–2030.

Gaps remain around natural gas allowance transfers to electric utilities, post-2030 allocations, and regulatory certainty, to be addressed in future rulemakings. Office of Administrative Law (OAL)approved the package, effective September 1, 2026.

Separately, California, Washington state, and Quebec agreed to link their carbon markets, coordinating market monitoring, credit tracking, and permit sales. California must still complete required notices, analyses, and findings before proceeding. REU will work with CMUA to ensure POU considerations are reflected as the programs converge.

Advanced Clean Fleets (ACF): Following the September 2025 repeal of ACF's private/federal fleet provisions (after federal waiver withdrawal), CARB directed staff to revise the rule for greater public fleet flexibility. The first 15-day language pushes the 100% zero-emission vehicle (ZEV) requirement from 2027 to 2030 (REU, in a low-population county, wouldn't need to comply until 2030), modifies exemptions (ZEV purchase, Daily Usage, Fleet Resiliency), and extends provisions to all public agencies. The second clarifies that contracted fleets count as part of an agency's fleet, CARB's Final Statement of Reason (FSOR) narrowed this to contracted vehicles dispatched at a specific vehicle/location. Despite that clarification, exemptions remain difficult to obtain, and enforcement remains unclear.

CARB submitted the final package July 29, 2026; OAL has until September 11, 2026, to approve or reject it, including whether the contract-fleet language warrants rejection. REU continues working with CMUA and NCPA on compliance flexibility, especially around daily use, fleet resiliency/mutual aid, ZEV purchase exemptions, and ZEV market solvency.

Conclusion
REU staff, in coordination with NCPA and CMUA, continue to engage with legislators and regulatory agencies to protect public power interests and help shape policies that support safe, reliable, and affordable electric service. As one of California’s lowest-cost electric providers, REU remains focused on preserving affordability, reliability, local control, and rate stability while advancing state clean energy goals and minimizing risk.

Packet Pg. 118 Attachment: Attachment 6 - Electric Utility Industry Update for Jun 2026 (9.5(a)--Redding Electric Utility's FY 2025-26 Financial Report)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept an informational report regarding the evaluation of future operating models for the City of Redding Utility Customer Services call center; and provide direction to staff regarding whether to: (a) further develop a City-operated model; (b) pursue a Request for Proposal for outsourced services; or (c) continue the current outsourced model.

Fiscal Impact
There is no fiscal impact associated with receiving this informational report and providing direction to staff. Detailed estimated costs associated with the City-operated model and a fiveyear comparison with continued outsourced services are provided in Attachment 1.

Alternative Action
The City Council may not accept the informational report and provide alternative directions to staff.

Background/Analysis
Utility Customer Services is a primary point of contact for City of Redding (City) customers receiving electricity, water, solid waste, and sewer services. Customer Services supports approximately 50,000 active utility accounts, generates more than 600,000 billing statements annually, and is responsible for customer transactions associated with more than $220 million in annual utility revenue. Customers contact Customer Services regarding starting or stopping service, billing and payment questions, account changes, payment arrangements, utility assistance programs, service-related requests, and other account matters.

MEETING DATE: October 6, 2026
ITEM NO. 9.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(b)--Receive the Utility Customer Services Call Center Report Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 119
Report to Redding City Council September 30, 2026
Re: 9.5(b)--Receive the Utility Customer Services Call Center Report Page 2 Customer assistance is currently provided through a combination of City employees, online and automated services, and an outsourced call center. City employees provide walk-in customer service, back-office billing and account support, revenue collection, program administration, escalated issue resolution, and coordination with the City’s operating departments. The outsourced call center serves as the first point of contact for most incoming telephone calls.

The City has utilized an outsourced call center model since 2013, when call center services were outsourced in connection with implementation of the Vertex customer information system. In 2017, Faneuil acquired Vertex Business Services’ customer-management outsourcing operations.

Following a competitive procurement process, the City issued a Request for Proposal and awarded the call center services contract to Faneuil in 2019. Services transitioned to the current provider, Everise, in 2023.

Under the current operating model, the outsourced call center receives incoming utility customer calls, handles routine account and billing inquiries, processes customer requests within established procedures, provides first-level customer assistance, and operates under contractual service-level requirements. Calls or account issues that cannot be resolved within the outsourced call center’s established authority and procedures are referred to City staff for additional review, correction, or follow-up.

Although the outsourced call center provides first-level customer assistance, City employees retain responsibility for complex utility matters, account corrections, escalated customer concerns, policy interpretation, coordination with field and operating departments, and follow-up when an issue cannot be resolved during the initial customer contact.

Since the outsourced model was established, customer outreach methods and the Utility Customer Services operating environment have changed. Online account access, electronic payment options, automated payment services, paperless billing, and other self-service tools now allow customers to complete many routine transactions without contacting a representative.

These changes have contributed to evolving call volumes and provide an opportunity to evaluate whether call center staffing and resources remain appropriately aligned with current customer demand.

The financial environment has also changed. Annual outsourced call center costs increased from approximately $768,000 in 2014 to approximately $1.269 million in 2025, an increase of approximately 65 percent. At the same time, City staff continue to provide the internal support, oversight, corrections, and escalated issue resolution necessary to supplement the outsourced operation.

The current contract cycle provides a natural opportunity to evaluate whether the existing outsourced model continues to provide the best long-term value or whether another operating model could reduce costs while maintaining customer service levels and improving operational flexibility. Staff’s evaluation considers financial impacts, customer demand, staffing requirements, service quality, operational oversight, emergency-response coordination, data stewardship, local knowledge, and the ability to adapt to future customer service needs.

Packet Pg. 120
Report to Redding City Council September 30, 2026
Re: 9.5(b)--Receive the Utility Customer Services Call Center Report Page 3 Current Service and Support Analysis
Staff’s evaluation recognizes that the current outsourced provider generally meets established contractual service-level requirements. Recent performance measures reviewed by staff include:
• 84 to 92 percent of calls answered within 30 seconds; • 1 to 2 percent abandoned call rate;
• Average speed of answer ranging from approximately 13 to 24 seconds; • Call quality scores of approximately 88 to 90 percent; and • 100 percent reported network availability.

Although contractual performance is generally being achieved, Customer Services staff continue to provide additional assistance with complex utility issues, corrections, escalations, and customer follow-up.

For example, during July 2026, staff identified 36 call center errors requiring City staff correction or follow-up, including issues involving service orders, customer documentation, mailing addresses, customer information, payments, and deposits.

Staff also reviewed agent workload utilization, which has been reported at approximately 38 to 48 percent, below target levels. Combined with declining call volume and increased use of customer self-service options, this information indicates an opportunity to evaluate whether call center staffing can be more closely aligned with current customer demand.

The current outsourced operation utilizes approximately 9 to 12 full-time Customer Service Representative positions, while the City-operated model evaluated by staff would utilize 7 Customer Service Representatives.

City-Operated Model Evaluation
Staff evaluated a City-operated call center model designed to maintain customer service while reducing operating costs and providing more direct City oversight.

The staffing model evaluated includes:
• 7 Customer Service Representatives responsible for incoming customer calls and utility account assistance;
• 1 Workflow Coordinator responsible for scheduling, reporting, queue monitoring, and quality support; and
• Existing supervisory oversight, with no additional supervisory position included in the proposed model.

The staffing level was developed based on observed call demand, current and historical call volume, employee leave and training requirements, peak events, and the continued expansion of customer self-service options.

Under the model evaluated, City leadership would have direct oversight of training, scheduling, quality assurance, customer messaging, and performance expectations.

Packet Pg. 121
Report to Redding City Council September 30, 2026
Re: 9.5(b)--Receive the Utility Customer Services Call Center Report Page 4 Financial Considerations
As part of the evaluation, staff developed a detailed cost estimate for a City-operated call center and compared those costs with continued outsourced services. The line-item City-operated cost analysis, including personnel costs, ongoing operations and maintenance costs, one-time implementation costs, transition costs, and a five-year cost comparison, is included as Attachment 1. The 2019 Faneuil call center contract, which contains the pricing and annual adjustment provisions applicable to the outsourced service, is included as Attachment 2.

The current outsourced call center cost is approximately $1.269 million annually. The Cityoperated model has an estimated Year 1 base cost of approximately $1.008 million, consisting of approximately $925,000 in ongoing annual operating costs and approximately $83,000 in onetime startup costs.

Staff also included approximately $212,000 for two months of continued outsourced service during employee training and operational stabilization. This results in an estimated transitioninclusive Year 1 cost of approximately $1.219 million, producing approximately $50,000 in firstyear savings. For purposes of the financial comparison, Year 1 begins when City call center employees are hired and includes the approximately two-month dual-operation period before golive. For purposes of the five-year comparison, staff applied an estimated 2 percent annual escalation to ongoing City-operated costs. One-time startup and transition costs are included only in Year 1. Outsourced costs were projected using a 2.4 percent annual escalation for planning purposes, based on the most recent Consumer Price Index for All Urban Consumers (CPI-U) adjustment applied under the existing contract.

Under the contract, annual rate adjustments are based on the applicable CPI-U for the preceding 12-month period and may not exceed 6 percent in any given year. Actual outsourced costs may therefore vary based on future CPI-U adjustments and productive hours billed.

Based on these assumptions, the five-year analysis estimates approximately $6.66 million in outsourced call center costs compared with approximately $5.11 million for the City-operated model, including the initial transition overlap allowance. This results in projected net savings of approximately $1.55 million over five years.

These figures are planning estimates and may change as staffing, technology, facility, implementation, and contract requirements are further developed. If the Council provides direction to proceed with development of the City-operated model, any necessary budget appropriations, staffing authorizations, contracts, or other implementation actions would be brought back to the City Council for consideration as appropriate.

Operational Considerations
In addition to the financial analysis, staff evaluated four key operational areas associated with a City-operated call center: direct operational control, emergency response, data stewardship, and local knowledge and workforce. These considerations reflect how a City-operated model could affect day-to-day service delivery, oversight, and coordination.

Packet Pg. 122
Report to Redding City Council September 30, 2026
Re: 9.5(b)--Receive the Utility Customer Services Call Center Report Page 5 • Direct Operational Control
A City-operated model would provide direct oversight of employee training, quality assurance, scheduling, customer messaging, and performance expectations. Utilityspecific processes and changes could be communicated directly to employees without relying on a separate vendor management structure.
• Emergency Response
City-operated employees could be directly incorporated into Utility response activities during outages, Public Safety Power Shutoff events, storms, and other high-call-volume situations. This would provide closer coordination between Customer Services, utility operations, field personnel, and other City departments. • Data Stewardship
Direct City oversight would provide greater organizational control of customer information, compliance requirements, quality assurance, and audit expectations. • Local Knowledge and Workforce
City representatives would have direct knowledge of local conditions, City programs, neighborhoods, utility operations, and the customers they serve. The model would also create and retain customer service positions within the local workforce.

Future Service Opportunities
A City-operated structure may also provide greater flexibility to evaluate future customer service opportunities. Potential future initiatives identified during the evaluation include:
• Live-agent online chat services; and
• Opportunities to expand centralized customer service support to other City departments.

These initiatives are not included as commitments within the current evaluation and would require additional analysis before implementation.

Implementation Considerations
If Council ultimately directs staff to pursue a City-operated model, staff estimates approximately nine months from formal Council authorization through full operational transition.

Major implementation activities would include:
• Finalizing the operating and staffing plan;
• Preparing the facility and workspace;
• Recruiting and hiring employees;
• Installing and configuring call center technology;
• Developing procedures, training materials, and quality assurance processes; • Completing approximately eight weeks of employee training; • Conducting operational testing; and
• Completing a phased transition from outsourced services to City-operated call center operations.

The anticipated 9-month implementation period would include planning, facility and technology preparation, recruitment, and other readiness activities while the outsourced provider continues operating the call center. Staff anticipate that City employees would be hired approximately two months before go-live, creating a limited period of dual operation for training, testing, and stabilization. The financial analysis treats only this two-month dual-operation period as transition overlap. During the preceding implementation activities, the outsourced provider would remain the sole call center operator and City call center employees would not yet be incurring ongoing personnel costs.

Packet Pg. 123
Report to Redding City Council September 30, 2026
Re: 9.5(b)--Receive the Utility Customer Services Call Center Report Page 6 Any contract extension, renewal, termination, or other action necessary to maintain uninterrupted service through the transition would be evaluated as the implementation schedule is developed and brought forward for approval as appropriate.

Options for Council Direction
Based on the analysis completed to date, staff has identified three primary options for future call center operations:

1. Continue development of the City-operated model.

Direct staff to further develop the implementation plan and return to Council with the necessary staffing, budget, contracts, and implementation actions for formal consideration.

2. Issue a Request for Proposal for outsourced call center services.

Direct staff to competitively solicit outsourced call center services, which could include consideration of local preference or other service requirements as permitted.

3. Continue the current outsourced model.

Continue services under the existing contract, subject to available renewal provisions and applicable contract requirements.

Staff is seeking Council direction regarding which option, if any, should be further developed.

No authorization to implement a City-operated call center is requested at this time.

Environmental Review
Receiving this informational report and providing direction to staff is not a project as defined under the California Environmental Quality Act, and no further action is required at this time.

Council Priority/City Manager Goals
• Communications and Transparency – Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency and public trust.
• Government of the 21st Century – Be relevant and proactive to the opportunities and challenges of today’s residents and workforce and anticipate the future to make better decisions today.

Attachments
Attachment 1 - Call Center Cost Analysis
Attachment 2 - Faneuil, Inc. Contract
Packet Pg. 124
Attachment 1 - City-Operated Call Center Cost Analysis
Five-Year Cost Comparison | Planning Estimates | September 2026 Attachment 1 - Page 1 of 3
YEAR 1 CONTRACT
$1.269M
YEAR 1 CITY-OPERATED
$1.219M
YEAR 1 SAVINGS
$50K

FIVE-YEAR SAVINGS
$1.551M

1. Annual Personnel Costs
Classification Qty Base Wages Benefits Annual Loaded Total Customer Service Representatives 7 $458,752 $319,480 $778,232 Workflow Coordinator 1 $80,600 $51,148 $131,748
Total Personnel 8 $539,352 $370,628 $909,980
Wage and benefit amounts were verified by the Finance Department using the September 2026 employee-cost worksheet.

2. Ongoing Operations & Maintenance
Cost Item Annual Cost Planning Basis
Personnel $909,980 7 CSRs + 1 Workflow Coordinator
Call-center technology / licensing $15,000 Annual planning allowance Total Annual O&M $924,980
Annual Cost Trend
The City-operated model produces savings in Year 1 after startup and transition costs, with greater annual savings after the overlap period ends.

3. Five-Year Cost Comparison
Year Outsourced Cost City Ongoing O&M One-Time Startup Transition Overlap City Total Estimated Savings Year 1 $1,269,337 $924,980 $82,606 $211,556 $1,219,142 $50,195 Year 2 $1,299,801 $943,480 - - $943,480 $356,321
Year 3 $1,330,996 $962,349 - - $962,349 $368,647
Year 4 $1,362,940 $981,596 - - $981,596 $381,344
Year 5 $1,395,651 $1,001,228 - - $1,001,228 $394,423
Five-Year Total $6,658,725 $4,813,633 $82,606 $211,556 $5,107,795 $1,550,930 Projection basis: City ongoing O&M; escalates 2.0% annually. Outsourced costs escalate 2.4% annually for planning purposes, based on the current CPI-U adjustment. Actual outsourced rates are adjusted under the 2019 contract based on CPI-U, capped at 6% annually, and actual costs may vary with productive hours billed. Packet Pg. 125 Attachment: Attachment 1 - Call Center Cost Analysis (9.5(b)--Receive the Utility Customer Services Call Attachment 1 - City-Operated Call Center Personnel Cost Detail Finance-Verified Annual Salary and Benefit Rates | September 2026 Attachment 1 - Page 2 of 3

1. Annual Cost per Employee
Cost Component Customer Service Representative Workflow Coordinator Salary $65,536 $80,600
Workers' Compensation $616 $758
Group Healthcare $21,779 $21,801
PERS $22,295 $27,420
Medicare $950 $1,169
Total Annual Cost per Employee $111,176 $131,748

2. Proposed Staffing and Annual Personnel Cost
Classification Qty Loaded Cost per Employee Calculation Annual Loaded Cost Customer Service Representatives 7 $111,176 7 x $111,176 $778,232 Workflow Coordinator 1 $131,748 1 x $131,748 $131,748
Total Annual Personnel Cost 8 $909,980
Personnel cost includes salary, Workers' Compensation, group healthcare, PERS, and Medicare. The model assumes existing supervisory oversight and does not include an additional supervisory position.

Source: Finance-verified September 2026 employee-cost worksheet. Packet Pg. 126 Attachment: Attachment 1 - Call Center Cost Analysis (9.5(b)--Receive the Utility Customer Services Call Attachment 1 - Cost Model Assumptions
Detailed Inputs, Methodology, and Source Notes | September 2026 Attachment 1 - Page 3 of 3

1. Core Planning Inputs
Input Value Units Source / Note
Current outsourced annual cost $1,269,337 $ / year Current annual cost used in the staff report Outsourced planning escalator 2.4% % / year Current CPI-U planning assumption; contract adjustment is capped at 6% City ongoing O&M escalator 2.0% % / year Five-year financial planning assumption for City costs CSR loaded annual cost per employee $111,176 $ / employee Finance-verified September 2026 employee-cost worksheet Workflow Coordinator loaded annual cost $131,748 $ / employee Finance-verified September 2026 employee-cost worksheet Call-center technology / licensing $15,000 $ / year Planning allowance; see technology note below One-time workstations (8) $67,228 $ one-time Prior call-center startup estimate One-time computers and monitors (8) $15,378 $ one-time Prior call-center startup estimate Transition overlap 2 months Dual operation during training, testing, and stabilization

2. Projection Methodology
City-operated costs Year 1 includes annual ongoing O&M;, one-time startup costs, and approximately two months of outsourced overlap. Ongoing O&M; is escalated 2.0% annually in Years 2 through 5.

Outsourced costs The current annual outsourced cost is escalated 2.4% annually for planning purposes. The contract uses CPI-U adjustments, capped at 6% in any year, and actual annual spending may also vary with productive hours billed.

Comparison period For purposes of the financial comparison, Year 1 begins when City call center employees are hired and includes the approximately two-month dual-operation period before go-live.

Supervision and facility The model assumes existing supervisory oversight and no additional facility overhead beyond the one-time startup amounts shown.

3. Technology Cost Note
The January 16, 2026 quote provides seven 8x8 X7 contact-center licenses at $125 per license per month, or $10,500 annually, plus applicable taxes and fees. The quote excludes PCI Pal / Secure Pay. The financial model uses a $15,000 annual technology and licensing allowance to provide planning capacity for taxes, fees, and other potential requirements. Final technology costs should be confirmed before implementation authorization.

4. Personnel Cost Verification
The wage, benefit, and loaded personnel cost amounts shown in this analysis were verified by the Finance Department using the September 2026 employee-cost worksheet.

The staffing quantities and future-year escalation assumptions remain planning estimates and may be updated as the operating model is further developed.

Sources: September 2026 employee-cost worksheet; January 16, 2026 Vertical Communications 8x8 pricing email; 2019 Faneuil contract pricing and CPI-U adjustment provisions; staff planning estimates. Packet Pg. 127 Attachment: Attachment 1 - Call Center Cost Analysis (9.5(b)--Receive the Utility Customer Services Call rt CITY OF REDDING
777 CYPRESS AVENUE, REDDING, CA 96001
P.O. Box 49607 1, REDDING, CA 96049- 6071

PAMELA MIZE, CITY CLERK

SHARLENE TIPTON, ASSISTANT CITY CLERK
530. 225. 4447
530. 225.4463 FAX
February 6, 2020
Faneuil, Inc.

Attn: Anna Van Buren, President& CEO
2 Eaton St, Suite 1002
Hampton, VA 23669
SUBJECT: Consulting and Professional Services Contract, C- 8429 Dear Ms. Van Buren,
Enclosed please find the fully executed original of the above referenced Consulting and Professional Services Contract by and between the City of Redding and Faneuil, Inc. for the purpose of providing contact center services.

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

Sincerely,
Joan Twomey
Executive Assistant
Enclosure
cc: Karlson
Bryan
General Counsel- Faneuil, Inc
Grannis
Packet Pg. 128 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report)

CITY OF REDDING

CONSULTING AND PROFESSIONAL SERVICES CONTRACT
THIS CONTRACT is made at Redding, California, by and between the City of Redding City"), a municipal corporation, and Faneuil, Inc. (" Consultant") for the purpose of providing contact center services.

WHEREAS, City does not have sufficient personnel to perform the services required herein thereby necessitating this Contract for personal services.

NOW, THEREFORE, the Parties covenant and agree, for good consideration hereby acknowledged, as follows:

SECTION 1. CONSULTANT SERVICES
Subject to the terms and conditions set forth in this Contract, Consultant shall provide to City the services described in Exhibit A, attached and incorporated herein. Consultant shall provide the services at the time, place and in the manner specified in Exhibit A.

SECTION 2. COMPENSATION AND REIMBURSEMENT OF COSTS
A. City shall pay Consultant for services rendered pursuant to this Contract, at the times and in the manner set forth in Exhibit B, attached and incorporated herein.

This pricing includes all out-of-pocket travel, lodging and incidental expenses incurred by Consultant that are reasonably associated with the provision of services under this Contract. The payments specified herein shall be the only payments to be made to Consultant for services rendered pursuant to this Contract.

B. Consultant shall submit monthly invoices to City for work completed to the date of the invoice. All invoices shall be itemized to reflect the employees performing the requested tasks, the billing rate for each employee and the hours worked.

C. All correct, complete and undisputed invoices sent by Consultant to City shall be paid within thirty( 30) calendar days of receipt.

SECTION 3. TERM AND TERMINATION
A. The initial contract will be for seven( 7) years from December 4, 2019, the expiration date of the prior contract with Consultant for like services. In addition, this contract provides an option for up to three ( 3) consecutive one- year renewals, by mutual agreement ofthe Parties in writing at least one hundred twenty( 120) days prior to the expiration of the initial term or any renewal term. xv,
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4. r
Packet Pg. 129 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) B. If Consultant fails to perform its duties to the satisfaction of City, or if consultant fails to fulfill in a timely and professional manner its obligations under this Contract, then City shall have the right to terminate this Contract effective immediately upon City giving written notice thereof to Consultant.

C. Either Party may terminate this Contract without cause on thirty ( 30) calendar days' written notice. Notwithstanding the preceding, if the term set forth in Section 3. A. of this Contract exceeds ninety ( 90) calendar days in duration, Consultant' s sole right to terminate shall be limited to termination for cause.

D. Consultant hereby acknowledges and agrees that the obligation of City to pay under this Contract is contingent upon the availability of City' s funds which are appropriated or allocated by the City Council. Should the funding for the project and/ or work set forth herein not be appropriated or allocated by the City Council, City may terminate this Agreement by furnishing at least thirty( 30) calendar days' written notice of its intention to terminate. In the event of a termination pursuant to this subdivision, Consultant shall not be entitled to a remedy of acceleration of payments due over the term of this Agreement. The Parties acknowledge and agree that the power to terminate described herein is required by Article 16, Section 18, of the California Constitution, and that constitutional provision supersedes any law, rule, regulation or statute which conflicts with the provisions of this Section.

E. In the event that City gives notice of termination, Consultant shall promptly provide to City any and all finished and unfinished reports, data, studies, photographs, charts or other work product prepared by Consultant. pursuant to this Contract. City shall have full ownership, including, but not limited to, intellectual property rights, and control of all such finished and unfinished reports, data, studies, photographs, charts or other work product.

F. In the event that City terminates the Contract, City shall pay Consultant the reasonable value of services rendered by Consultant pursuant to this Contract; provided, however, that City shall not in any manner be liable for lost profits which might have been made by Consultant had Consultant completed the services required by this Contract. Consultant shall, not later than ten ( 10) calendar days after termination of this Contract by City, furnish to City such financial information as in the judgment of the City' s representative is necessary to determine the reasonable value ofthe services rendered by Consultant.

G. In no event shall the termination or expiration of this Contract be construed as a waiver of any right to seek remedies in law, equity or otherwise for a Party' s failure to perform each obligation required by this Contract.

SECTION 4. MISCELLANEOUS TERMS AND CONDITIONS OF CONTRACT A. City shall make its facilities accessible to Consultant as required for Consultant' s performance of its services under this Contract, and, upon request of Consultant, provide labor and safety equipment as required by Consultant for such access. 2 Packet Pg. 130 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) B. If required by the City' s business license ordinance, Consultant shall obtain a City business license prior to commencing work.

C. Consultant represents and warrants to City that it has all licenses, permits, qualifications and approvals of any nature whatsoever that are legally required for Consultant to provide the services. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Contract any licenses, permits and approvals that are legally required for Consultant to practice its profession.

D. Consultant shall, during the entire term of this Contract, be construed to be an independent contractor and nothing in this Contract is intended, nor shall it be construed, to create an employer/ employee relationship, association, joint venture relationship, trust or partnership or to allow City to exercise discretion or control over the professional manner in which Consultant performs under this Contract.

Any and all taxes imposed on Consultant' s income, imposed or assessed by reason of this Contract or its performance, including but not limited to sales or use taxes, shall be paid by Consultant. Consultant shall be responsible for any taxes or penalties assessed by reason of any claims that Consultant is an employee of City.

Consultant shall not be eligible for coverage under City' s workers' compensation insurance plan, benefits under the Public Employee Retirement System or be eligible for any other City benefit.

E. No provision of this Contract is intended to, or shall be for the benefit of, or construed to create rights in, or grant remedies to, any person or entity not a party hereto.

F. No portion of the work or services to be performed under this Contract shall be assigned, transferred, conveyed or subcontracted without the prior written approval of City. Consultant may use the services of independent contractors and subcontractors to perform a portion of its obligations under this Contract with the prior written approval of City. Independent contractors and subcontractors shall be provided with a copy of this Contract and Consultant shall have an affirmative duty to assure that said independent contractors and subcontractors comply with the same and agree to be bound by its terms. Consultant shall be the responsible party with respect to all actions of its independent contractors and subcontractors, and shall obtain such insurance and indemnity provisions from its contractors and subcontractors as City' s Risk Manager shall determine to be necessary.

G. Consultant, at such times and in such form as City may require, shall furnish City with such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Contract, the costs or obligations incurred or to be incurred in connection therewith, and any other matters covered by this Contract.

H. Consultant shall maintain accounts and records, including personnel, property and financial records, adequate to identify and account for all costs pertaining to this Contract and such other records as may be deemed necessary by City to assure proper accounting for all project funds. These records shall be made available for 3 Packet Pg. 131 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) audit purposes to state and federal authorities, or any authorized representative of City. Consultant shall retain such records for three ( 3) years after the expiration of this Contract, unless prior permission to destroy them is granted by City.

I. Consultant shall perform all services required pursuant to this Contract in the manner and according to the standards observed by a competent practitioner of Consultant' s profession. All products of whatsoever nature which Consultant delivers to City pursuant to this Contract shall be prepared in a professional manner and conform to the standards of quality normally observed by a person practicing the profession of Consultant and its agents, employees and subcontractors assigned to perform the services contemplated by this Contract.

J. All completed reports and other data or documents, or computer media including diskettes, and other materials provided or prepared by Consultant in accordance with this Contract are the property of City, and may be used by City. City shall have all intellectual property rights including, but not limited to, copyright and patent rights, in said documents, computer media, and other materials provided by Consultant. City shall release, defend, indemnify and hold harmless Consultant from all claims, costs, expenses, damage or liability arising out of or resulting from City' s use or modification of any reports, data, documents, drawings, specifications or other work product prepared by Consultant, except for use by City on those portions of the City' s project for which such items were prepared.

K. Consultant, including its employees, agents, and subconsultants, shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Contract. Consultant shall comply with all requirements of the Political Reform Act ( Government Code § 8100 et seq.) and other laws relating to conflicts of interest, including the following: 1) Consultant shall not make or participate in a decision made by City if it is reasonably foreseeable that the decision may have a material effect on Consultant' s economic interest, and 2) if required by the City Attorney, Consultant shall file financial disclosure forms with the City Clerk. 4 Packet Pg. 132 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) SECTION 5. INSURANCE
A. Unless modified in writing by City' s Risk Manager, Consultant shall maintain the following noted insurance during the duration ofthe Contract:

Coverage Required Not Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers' Compensation and Employers' Liability X
Professional Liability( Errors and Omissions) X
Place an" x" in the appropriate box)
B. Coverage shall be at least as broad as:

1. Insurance Services Office form number CG- 0001, Commercial General Liability Insurance, in an amount not less than $ 1, 000, 000 per occurrence and $ 2, 000, 000 general aggregate for bodily injury, personal injury and property damage;

2. Insurance Services Office form number CA- 0001 ( Ed. 1/ 87), Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $ 1, 000, 000 combined single limits per accident applicable to all owned, non- owned and hired vehicles;

3. Statutory Workers' Compensation required by the Labor Code of the State of California and Employers' Liability Insurance in an amount not less than 1, 000, 000 per occurrence. Both the Workers' Compensation and Employers' Liability policies shall contain the insurer' s waiver of subrogation in favor of City, its elected officials, officers, employees, agents and volunteers;

4. Professional Liability ( Errors and Omissions) Insurance, appropriate to Consultant' s profession, against loss due to error or omission or malpractice in an amount not less than $ 1, 000, 000.

5. The City does not accept insurance certificates or endorsements with the wording " but only in the event of a named insured' s sole negligence" or any other verbiage limiting the insured' s insurance responsibility.

C. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its elected officials, officers, employees, agents and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claims administration and defense expenses.
5 Packet Pg. 133 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) D. The General Liability shall contain or be endorsed to contain the following provisions:

1. City, its elected officials, officers, employees, and agents are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of Consultant; premises owned, leased or used by Consultant; or automobiles owned, leased, hired or borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded to City, its elected officials, officers, employees, agents and volunteers.

2. The insurance coverage of Consultant shall be primary insurance as respects City, its elected officials, officers, employees, agents and volunteers. Any insurance or self-insurance maintained by City, its elected officials, officers, employees, agents and volunteers, shall be in excess of Consultant' s insurance and shall not contribute with it.

3. Coverage shall state that the insurance of Consultant shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits ofthe insurer's liability.

4. Each insurance policy required by this Contract shall be endorsed to state that coverage shall not be canceled except after thirty ( 30) calendar days' prior written notice has been given to City. In addition, Consultant agrees that it shall not reduce its coverage or limits on any such policy except after thirty( 30) calendar days' prior written notice has been given to City.

E. Insurance is to be placed with insurers with a current A.M.Best' s rating of no less than A-VII.

F. Consultant shall designate the City of Redding as a Certificate Holder of the insurance. Consultant shall furnish City with certificates of insurance and original endorsements effecting the coverages required by this clause. Certificates and endorsements shall be furnished to: Risk Management Department, City of Redding, 777 Cypress Avenue, Redding, CA 96001. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City' s Risk Manager prior to the commencement of contracted services. City may withhold payments to Consultant if adequate certificates of insurance and endorsements required have not been provided, or not been provided in a timely manner.

G. The requirements as to the types and limits of insurance coverage to be maintained by Consultant as required by Section 5 of this Contract, and any approval of said insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Consultant pursuant to this Contract, including, without limitation, provisions concerning indemnification. 6 Packet Pg. 134 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) H. If any policy of insurance required by this Section is a " claims made" policy, pursuant to Code of Civil Procedure § 342 and Government Code § 945. 6, Consultant shall keep said insurance in effect for a period of eighteen ( 18) months after the termination of this Contract.

I. If any damage, including death, personal injury or property damage, occurs in connection with the performance of this Contract, Consultant shall immediately notify City' s Risk Manager by telephone at ( 530) 225- 4068. No later than three 3) calendar days after the event, Consultant shall submit a written report to City' s Risk Manager containing the following information, as applicable: 1) name and address of injured or deceased person( s); 2) name and address of witnesses; 3) name and address of Consultant' s insurance company; and 4) a detailed description ofthe damage and whether any City property was involved.

SECTION 6. INDEMNIFICATION AND HOLD HARMLESS
A. Other than in the performance of professional services by a design professional, which is addressed solely by subdivision ( A) of this Section, and to the fullest extent permitted by law, Consultant shall indemnify protect, defend and hold harmless, City, its elected officials, officers, employees, and agents, and each and every one of them, from and against all actions, damages, costs, liability, claims, losses, penalties and expenses ( including, but not limited to, reasonable attorney' s fees of the City Attorney or legal counsel retained by City, expert fees, litigation costs, and investigation costs) of every type and description to which any or all of them may be subjected arising out of claims brought by third parties by reason of the performance of the services required under this Contract by Consultant its officers, employees or agents in the performance of professional services under this Contract, except when liability arises due to the sole negligence, active negligence or misconduct of the City.

B. The Consultant' s obligation to defend, indemnify and hold harmless shall not be excused because of the Consultant' s inability to evaluate liability. The Consultant shall respond within thirty ( 30) calendar days to the tender of any claim for defense and indemnity by the City, unless this time has been extended in writing by the City. If the Consultant fails to accept or reject a tender of defense and indemnity in writing delivered to City within thirty ( 30) calendar days, in addition to any other remedy authorized by law, the City may withhold such funds the City reasonably considers necessary for its defense and indemnity until disposition has been made of the claim or until the Consultant accepts or rejects the tender of defense in writing delivered to the City, whichever occurs first. This subdivision shall not be construed to excuse the prompt and continued performance of the duties required of Consultant herein.

C. The obligation to indemnify, protect, defend, and hold harmless set forth in this Section applies to all claims and liability regardless of whether any insurance policies are applicable. The policy limits of said insurance policies do not act as a limitation upon the amount ofindemnification to be provided by Contractor. 7 Packet Pg. 135 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) D. City shall have the right to approve or disapprove the legal counsel retained by Consultant pursuant to this Section to represent City' s interests. City shall be reimbursed for all costs and attorney' s fees incurred by City in enforcing the obligations set forth in this Section.

SECTION 7. CONTRACT INTERPRETATION, VENUE AND ATTORNEY FEES A. This Contract shall be deemed to have been entered into in Redding, California.

All questions regarding the validity, interpretation or performance of any of its terms or of any rights or obligations of the parties to this Contract shall be governed by California law. If any claim, at law or otherwise, is made by either party to this Contract, the prevailing party shall be entitled to its costs and reasonable attorneys' fees.

B. This document, including all exhibits, contains the entire agreement between the parties and supersedes whatever oral or written understanding each may have had prior to the execution of this Contract. This Contract shall not be altered, amended or modified except by a writing signed by City and Consultant. No verbal agreement or conversation with any official, officer, agent or employee of City, either before, during or after the execution of this Contract, shall affect or modify any of the terms or conditions contained in this Contract, nor shall any such verbal agreement or conversation entitle Consultant to any additional payment whatsoever under the terms of this Contract.

C. No covenant or condition to be performed by Consultant under this Contract can be waived except by the written consent of City. Forbearance or indulgence by City in any regard whatsoever shall not constitute a waiver of the covenant or condition in question. Until performance by Consultant of said covenant or condition is complete, City shall be entitled to invoke any remedy available to City under this Contract or by law or in equity despite said forbearance or indulgence.

D. If any portion of this Contract or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Contract shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

E. The headings in this Contract are inserted for convenience only and shall not constitute a part hereof. A waiver of any party of any provision or a breach of this Contract must be provided in writing, and shall not be construed as a waiver of any other provision or any succeeding breach of the same or any other provisions herein.

F. Each Party hereto declares and represents that in entering into this Contract, it has relied and is relying solely upon its own judgment, belief and knowledge of the nature, extent, effect and consequence relating thereto. Each Party further declares and represents that this Contract is made without reliance upon any statement or representation not contained herein of any other Party or any representative, agent or attorney ofthe other Party. The Parties agree that they are aware that they have 8 Packet Pg. 136 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) the right to be advised by counsel with respect to the negotiations, terms, and conditions of this Contract and that the decision of whether or not to seek the advice of counsel with respect to this Contract is a decision which is the sole responsibility of each of the Parties. Accordingly, no party shall be deemed to have been the drafter hereof, and the principle of law set forth in Civil Code § 1654 that contracts are construed against the drafter shall not apply.

G. Each of the Parties hereto hereby irrevocably waives any and all right to trial by jury in any action, proceeding, claim or counterclaim, whether in contract or tort, at law or in equity, arising out of or in any way related to this Agreement or the transactions contemplated hereby. Each Party further waives any right to consolidate any action which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived.

H. In the event of a conflict between the term and conditions of the body of this Contract and those of any exhibit or attachment hereto, the terms and conditions set forth in the body ofthis Contract proper shall prevail. In the event of a conflict between the terms and conditions of any two or more exhibits or attachments hereto, those prepared by City shall prevail over those prepared by Consultant.

SECTION 8. SURVIVAL
The provisions set forth in Sections 3 through 7, inclusive, of this Contract shall survive termination of the Contract.

SECTION 9. COMPLIANCE WITH LAWS - NONDISCRIMINATION
A. Consultant shall comply with all applicable laws, ordinances and codes of federal, state and local governments.

B. In the performance of this Contract, Consultant shall not discriminate against any employee or applicant for employment because of race, color, ancestry, national origin, _religious creed, sex, sexual orientation, disability, age, marital status, political affiliation, or membership or non-membership in any organization.

Consultant shall take affirmative action to ensure applicants are employed and that employees are treated during their employment without regard to their race, color, ancestry, national origin, religious creed, sex, sexual orientation, disability, age, marital status, political affiliation, or membership or non- membership in any organization. Such actions shall include, but not be limited to, the following:
employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training.

SECTION 10. REPRESENTATIVES
A. City' s representative for this Contract is Lisa Bryan, telephone number ( 530) 339- 7257, fax number ( 530) 339- 7299. All of Consultant' s questions pertaining to this 9 Packet Pg. 137 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) Contract shall be referred to the above- named person, or to the representative' s designee.

B. Consultant' s representative for this Contract is Scott Radzak, telephone number 320) 247- 9252, e- mail address: scott.radzak@faneuil. com All of City' s questions pertaining to this Contract shall be referred to the above- named person.

C. The representatives set forth herein shall have authority to give all notices required herein.

SECTION 11. NOTICES
A. All notices, requests, demands and other communications hereunder shall be deemed given only if in writing signed by an authorized representative of the sender ( may be other than the representatives referred to in Section 10) and delivered by facsimile, with a hard copy mailed first class, postage prepaid; or when sent by a courier or an express service guaranteeing overnight delivery to the receiving party, addressed to the respective parties as follows:

To City: To Consultant:

Lisa Bryan Faneuil, Inc.
3611 Avtech Pkwy Attn: Anna Van Buren, President& CEO
Redding, CA 96002 2 Eaton St, Suite 1002
Hampton, VA 23669
With a copy to:

Faneuil, Inc.

Attn: General Counsel
2 Eaton St, Suite 1002
Hampton, VA 23669
B. Either party may change its address for the purposes of this paragraph by giving written notice of such change to the other party in the manner provided in this Section.

C. Notice shall be deemed effective upon: 1) personal service; 2) two calendar days after mailing or transmission by facsimile, whichever is earlier.

SECTION 12. AUTHORITY TO CONTRACT
A. Each of the undersigned signatories hereby represents and warrants that they are authorized to execute this Contract on behalf of the respective parties to this Contract; that they have full right, power and lawful authority to undertake all obligations as provided in this Contract; and that the execution, performance and delivery of this Contract by said signatories has been fully authorized by all requisite actions on the part of the respective parties to this Contract. 10 Packet Pg. 138 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) B. When the Mayor is signatory to this Contract, the City Manager and/ or the Department Director having direct responsibility for managing the services provided herein shall have authority to execute any amendment to this Contract which does not increase the amount of compensation allowable to Consultant or otherwise substantially change the scope ofthe services provided herein.

SECTION 13. DATE OF CONTRACT
The date ofthis Contract shall be the date it is signed by City.

IN WITNESS WHEREOF, City and Consultant have executed this Contract on the days and year set forth below:

CITY OF REDDING,
A Municipal Corporation
Dated: r , 20Q b
By: Adam McElvain, Mayor
ATTEST: APPROVED AS TO FORM:

BARRY E. DeWALT
City Attorney
alT1A 2k
PAMELA MIZE, Ci elerk By:

FANEUIL, INC
Dated: January 20 , 20 20 6&QeQ--v— 6.

By: Anna Van Buren, President and
CEO
Tax ID No.: 04- 3253864
11 Packet Pg. 139 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) Exhibit A•

FANEUIL STATEMENT OF WORK FOR CITY OF REDDING MUNICIPAL UTILITIES

CALL CENTER SERVICES
Scope of Services: Faneuil Inc. ( herein " Supplier") shall take inbound customer telephone calls from City of Redding customers and staff. The calls shall consist of, but not be limited to customer transactions relating to the billing, payment and collections, and service change requests for the electric, water, wastewater and garbage services provided by the City of Redding.

Supplier will provide comprehensive management services to include the necessary labor, equipment and all other related staff and materials required to perform each of the services as set forth in this Statement of Work.

The team for call volume will be supported by a mutually agreed upon number of dedicated Customer Service Representatives ( CSRs). These CSRs will be hired and trained in general contact center skills, including soft skills ( etiquette, effective listening, soothing upset customers, processing emergency and urgent calls, etc.) along with the policies, procedures and guidelines required for handling customer inquiries. The parties shall base their headcount decisions on all commercially relevant business factors, including, but not limited to, forecasted call volume, call arrival patterns and performance metrics such as service level, occupancy and abandonment rates.

Projected Staffing Levels: A 90- day Planning Period will start at the beginning of each month to forecast the resources required for the Services 90 days in advance, allowing Supplier sufficient time to react to resource increases or decreases as appropriate.

Implicit within the Forecasting Process is Supplier' s ability to handle a 5% increase or decrease in actual call volumes to forecasted on a monthly basis, through the management of flexible workforce scheduling arrangements. If actual call volumes for calls received during normal operating hours are outside the 5% variance to forecasted, Supplier will be relieved from achieving the Contact Handling Service Levels set forth in the Service Level Agreements— Table 1, but will use reasonable efforts to achieve those service levels.

Supplier will be responsible for creating the call arrival forecast for all inbound call channels to be used to establish a 90- day rolling forecast. The forecast will be jointly reviewed and agreed upon by both parties every 30 days and no later than 21 days prior to the upcoming month.

Location of Supplier Call Center: Services will be based out of the Supplier call center located at 505 Broadway, Scottsbluff, Nebraska. Supplier shall not provide services from other Supplier locations without prior approval from City of Redding, except for supplementation as necessary for outages, heavy call volumes and services provided outside of the normal- operating hours.

Technology Responsibilities of the Parties:
i. Technology to be Provided bySSupplier
Local Network Equipment
Cisco UCCE ACD call platform
Agent desktop and network circuits
Security System
Cabling( voice and data)
LAN Equipment
AD Servers and CSR Computers
12 Packet Pg. 140 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) Operating Software
Voice and data circuits
PCI Compliant Call recording software
IVR Platform for both call handling and Automated Payment Processing Telephone number( s) for calls to route from City of Redding ii. Technical Requirements for Supplier
Provide dual screens for CSRs, with one being a minimum of 24" Provide capability for a backup Internet connection in the event of the failure of the primary circuit
X. City ofRedding Responsibilities
Deliver calls to Supplier' s ACD via a dedicated connection between Supplier and City of Redding
Provide and maintain all required CRM systems to support CSR interactions with City of Redding customers
Reporting Requirements: The supplier' s telephony infrastructure shall provide numerous statistical reporting capabilities for items such as received calls, length of calls, speed of answer, calls abandoned, service level, calls transferred, etc.

The Supplier agrees to provide City of Redding with access to Supplier' s reporting system and view access to the real- time call queue activity. Supplier shall report performance metrics on an agreed timeline in an agreed upon format, no less than on a monthly basis.

Hours of Operation: The mandatory hours for daily operations are Monday through Friday from 8: 00 a. m. to 5: 00 p.m. ( PT) that City of Redding is open to the public, with the exception of being closed all major holidays observed by City of Redding that occur on a normally occurring business day or as observed as defined below.

The City ofRedding is closed 9
1/
z days per year in recognition of" fixed"* Holidays: January 1 st( New Year' s Day), Martin Luther King Jr. Day( 3rd Monday in January), President' s Day( 3rd Monday in February), Memorial Day( last Monday in May), July 4th ( Independence Day), Labor Day( 1 st Monday in September), Thanksgiving Day( last Thursday in November), Friday after Thanksgiving, December 24th( Close @ noon), December 25th( Christmas Day)
Fixed" Holidays that fall on a Saturday or Sunday would be observed on the preceding Friday or following Monday.

By October 31 annually, City of Redding will confirm the" fixed" Holidays schedule for the following year.

Training: The Supplier will utilize established comprehensive training program in conjunction with input from City of Redding that adequately prepares new CSRs to handle customer inquiries. The training program will include classroom style training, on the job training and peer review. The Supplier' s training will focus on City of Redding' s mission, goal and specific policies and inforination required to answer City of Redding customer questions and inquiries, as well as procedures to complete transactions accurately within the City of Redding' s CRM systems.

Supplier will utilize an established process, mutually agreed upon by Supplier and City of Redding, to provide training on policy/procedure changes and updates to CSRs on a regular basis. 13 Packet Pg. 141 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) City of Redding will be responsible for communicating in writing and ensuring understanding of any changes to its policies, procedures and guidelines with the Supplier training staff.

Supplier will provide a non- dedicated training resource who will work with the City of Redding on change to training content and communication of changes to CSRs. This training resource will also be responsible for any new hire training.

City of Redding will provide a policy, procedure and training manual to be used for new hire training and by CSRs handling customer inquiries. Supplier and City of Redding will be mutually responsible for maintaining the accuracy of the manual.

Quality Assurance: Supplier will utilize mutually agreed upon established Quality Assurance program designed to monitor, measure, review and report levels of performance within each area of operations.

The plan will focus on quality planning, quality assurance, quality control and continuous quality improvement to ensure that City of Redding quality of standards are satisfied for on- going operations, and to ensure the customer experience meets desired standards.

Supplier will provide a non- dedicated quality assurance resource who will work with the City of Redding on the quality assurance program and manage changes to the process.

Supplier will schedule call calibration sessions with City of Redding on an agreed upon schedule, at a minimum of two times per month. During these calibration sessions individual CSR calls will be reviewed and scored by each party.

Supplier will utilize mutually agreed upon established Quality Assurance scoring form that utilizes standard Supplier quality monitoring practices and processes. Foran can be modified in future by mutual agreement between Supplier and City of Redding. ( Attachment 1: QSDD program.) Supplier will independently review and score a minimum of two calls per CSR, per month. These calls will be separate from any calls reviewed during the calibration sessions. The respective scores from these calls will be reported during the monthly Operations call.

Supplier shall record 100% of calls in a PCI compliant manner and such records shall be retained for five ( 5) years.

Supplier shall provide the ability for two City of Redding staff to remotely access the call recordings.

Change Management Process: Any material changes to the scope or teens of this SOW shall be agreed to in writing by the parties. If either party believes a proposed or requested changes rises to the level of requiring a written change order as contemplated herein, that party shall make the request for adherence to this section. At that time, the parties shall negotiate in good faith to complete the change order.

IVR System: Supplier will provide a PCI compliant IVR system to handle specified customer inquiries, including the ability for customers to make payments that will be reflected real- time within the City of Redding CRM systems.

Other Supplier Requirements:

Provide language interpreter services for customer calls received from non- English speaking customers.
14 Packet Pg. 142 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) Make available a non- dedicated project leader to act as a liaison to City of Redding during setup of operations.

Develop a staffing plan to ensure that sufficient resources are available for normal business operations.

Establish a call escalation process for complex or unknown issues received.

Initiate outbound follow- up calls to customers as needed.

Capture and track all customer contacts in the City of Redding supplied CRM Identify controllable and uncontrollable causes when performance targets are not met and take actions to address controllable causes.

Assist in writing and updating customer care scripts.

Establish on- going performance review meetings, including but not limited to monthly Operations Review meetings and Quarterly Business Review meetings.

Provide sufficient management staff to successfully execute the provisions of this SOW.

Other City of Redding Requirements:

Approve customer care scripts
Provide all initial training materials
15 Packet Pg. 143 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) O
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The Quality Standards Definition Document ( QSDD) aims to define all QA Contact Center parameters whenever QA Specialists/ Supervisors/ Managers monitor a call made by our CSR.

Our City of Redding QA Call Monitoring form consists of 13 attributes which has corresponding weight and values. The total possible points earned by a CSR on a single evaluation is 100 points. The goal for each interaction is to be at 85% or greater.

All monitoring results with a score of 84% and below will require coaching by the Supervisor within 3 business days.

All monitoring results with a score of 74% and below will require immediate coaching by the Supervisor within 24hrs. The Quality Team will provide this notification to the Supervisor.

Quality monitor disputes must be submitted to the Operations Manager within 72 business hours of the evaluation taking place. Please refer to Quality Dispute Process - City or Redding for details.

Quality monitors will be evaluated no more than Business 3 days from the date of the interaction with the customer.

The Quality Plan outlines additional evaluation processes and expectations.

Ofaneuit CSR QSDD I City of Redding 16272019 7: 49 AM 1 This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this information and violatingthese provisions is punishable by law. 18 Packet Pg. 146 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) X40, r e tri QSDD - City of Redding v2. 2
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1. 1 Greeting:

Expectation:

CSRs are expected to provide the proper opening on every call they take. This sets the tone of the call and leads to an excellent customer experience.

Is prepared and ready to take the call.

Answers the call within 3 seconds( as soon as the call is presented), CSR provides their first name, identifies the company' s name ( City of Redding) and express intent to help.

The greeting is professional, friendly and not rushed. CSR should sound alert, ready for the customer, upbeat, clear, and say greeting at an understandable rate.

Opening CSR must be prepared to answer/ greet the customer and not working on aprevious customer account.

When: During the opening of the call.

Suggested verbiage: ^ Thank you for calling the City of Redding, his is How may 1 help you today?
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When all applicable expectations are met.

QQto log Does Not` Maeri _
When one or more applicable expectations are not met.
8faneuil CS,R QSDD I Cityof Redding 16/ 1 7/ 2.019 749 AM 2 This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiinng cihformation and Violatmgthese provisions i.s puriistiable by 1a*.

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1. 2 Verification:

Expectation:

CSRs are required to make sure that we are disclosing account information to appropriate member.

CSRs mustverify the customer' s account information when the customer has a question or need pertaining to an order or information on their account.

Authenticating an accountrequires the account holder name, whothey are speaking with( must be account holder or authorized third party), last 4 digits of the sod al security number of the account holder or third- party caller.

Mailing Address and account phone number can then be proactively verified. o
If phone number they are calling in from matches the phone number on Cisco Finesse, it does not need verified.
o For repeat callers( within 34 days), do not need to verify mailing address and/ or phone number. Suggested script: ' I see that you called recently, are your mailing address and phone number still the same?" Commercial Accounts may verify Taos ID instead of social security number. ddhen a customer has general questions not pertaining to an account or an order, the CSR does not need to authentic the caller.

When: Before any information is provided regarding an account.

Opening
Suggested verbiage:

To furt7 er assrstyou, may 1 please have your first aid lastname? Thank you Mrlurs. Could you verify the marllnq address on the account?', last four ofSS# and Phone#
oIog. Fully'
When all applicable expectations are met.

When the customer has general questions not pertaining to an account or order( operating hours, driving directions, etc.

QA to, l o:g Partialiy. MM® eta
When accountholder name and SSN are verified but not mailing address and/ or phone number, when applicable.
og Auta Fail:'
When accountholder name and SSN were notverified prior to disclosing account information.

When CSR discloses information to an unauthorized third party and/ or disclosed information to a wrong party, wherein authentication took place, but caller did not match customer' s account information.

Ofaneuil CSR QSDD i Cityof Redding 1607/ 2019 7 49 AM 3 This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this inforira ion and violating these provisions. is"puni' able by lam.

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1. 3 Willingness to assist:

Expectation:

CSRs must demonstrate a willingness to assist the customer to instill confidence their issue will be resolved.

CSR acknowledges concern by restating the reason for the customer' s call and provides assurance utilizing affirmation statement. ' I will be happy to assistyou with( insertreason,.".

Provide confident statement of willingness to help.

The CSR should repeat back what they understand to provide clarity as needed throughout the interaction
Opening When: Atthe beginning of the interaction and throughoutthe interaction as needed.

Suggestad verbiage:
1 will be happy to assist) 1ou with( customer' s reguesVJ 1 can take care of that for you today. °
1 can take a look at thatfor you."
log Fu a IiI.

When all applicable expectations are met.

When CSR does not provide assurance and willingness to assistthe customer
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19faneuit CSR QSDD i. Cityof Redding 16/
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This document contains confidential and proprietary inormation for Faneuil employees only.

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2. 1 Effective Pmbing:

Expectation:

CSRs are expected to utilize effective questioning techniques to uncover the root cause for the customer' s reason for calling.

Ask probing questions to clarify and ensure understanding the customer' s needs.

Probing questions must relate to the statement provided by the customer and demonstrate the CSR was listening.

Talk through the situation to bring out any additional needs of the customer.

Effective use of open ended/ closed ended questions to determine reason for the call and clarify all information as needed.

Appropriately ask additional questions to fully understand the situation.

The CSR should not ask questions to the customer that they are able to locate within the system or tools. Verification or confirmation would be the exception i. e.- to confirm that are looking at the correct account).

When: Near the beginning of the interaction and throughout the interaction with the One Call customer as needed.

Suggested verbiage:

Resolution 0 " To understand ycurrequest a better, fd like to ask you a few questions." s it alrightif I ask you a few questions to understand your requestbetter?" j QAto, log' Fully.M
When all applicable expectations are met.
log Farhally. Mleets
When there were opportunities for the interaction to be more efficient with effective probing.

When the CSR used effective questioning techniques during portions of the call, but not throughout as needed.

When CSR does not effectively ask questions.

When CSR fails to understand the customer' s concern.

When GSR is unable to determine the root cause for the call and/ or missed opportunities to discover needed information from the customer.

Does
Ofaneuit CSR QSDD Ciiyof Redding) 607/ 2019 7 49 AM 5
This document contains confidential and proprietary information for Faneuil employees only.

Anyone recennng this iriformivn grid violatingtheseproutgions rs' punisYiable try laud:

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2.2 Properly researched account! Utilize tools and resources:

Expectaiticn:

CSRs must review all account/premise information completely.

Demonstrate proficiency with all resources in researching questions and adhering to compliance expectations.

CSR reviews the customer' s account and premise thoroughly to provide all pertinent information.

Utilize systems, training manual( s), job- aids, training tips, handouts,. Share Point, CoR Website, etc. to provide caller with accurate and complete information.

CSR identifies customers unspoken needs when appropriate.

CSR follows appropriate steps I call flow to assistthe customer When: Throughoutthe interaction as needed.

QA to Iogfully Meets` O ne Ce ii When all expectations are Complete and accurate information was relayed without needing to use Resolution resources.

QH`to log Partially;Meet'
When some but not all applicable resources were used, which led to customer' s concern not being addressed as thoroughly as possible.

When CSR is unable to identify customer' s unspoken needs.

QV;toilog Does
When resources were not effectively used which led to ineffective delivery of information.

When CSR does not demonstrate a level of comfortwith using resources.

QA to Io:g Secfion Fail7(-- Jts° in' 90-pornt7rip4- t .

When CSR fails to use all resources and result could lead to to customer harm andfor interfere with another department.

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2.3 Provide Complete and accurate information:

Expectation:

CSRs must provide the most updated information based on training materials, CoR guidelines and/ or updates communicated via email by our Contact Center leaders.

The CSR will:

Answer all customer questions completely and accurately.

When multiple questions were asked, verify that all were answered.

Provide accurate timeframes.

Check for customer' s understanding.

Provide next steps, when applicable.

Discuss all required disclosures.

Provides correct Solar information.

Energy Assistance:

Discuss appropriate energy assistance programs giving all details for application.

When appropriate, mention' local churches" and other non- profit assistance organizations by name. Do not mention specific churches.

Payments& PeymentArrangements:

Advise of balance due dates, and attemptto collector make arrangements for full account balance. One II Offer all available payment arrangement and hold options to protectthe account.

Resolution Offer PDD and/ or budget billing to assist customer.

Offer late fee waiver when applicable.

Advise customer of EFT, VSSP, and other options as appropriate to make payment based on customer' s comments or circumstances.

Connect All/ Reconnectl Transfer t Disconnect A I Service:

Advise of other related situations such as balance, due date of charges, and deposit amounts.

Advise of all services available at premise for connect/ transfer.

When: Throughout the interaction.
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Ofaneuil CSR QSDD I Cityof Redding 16272019 7: 49 AM 7
This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this information and violatingthese provisions is punishable bylaw.

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2.3 Provide Complete and accurate information: continued QAto log FullMeets y
When all applicable expectations are met.

QAto log Pat ally Meets
When non- critical information was not given, was incorrect or incomplete.

Examples:
o Late Charge waiver was not offered, when applicable.
o Energy Assistance programs were not discussed in detail. o Did not offer to take a payment.
o Did not give new customer account number.
o Hours of disconnect! reconnect/ connect were not discussed. o Detailed explanation of charges billed was not provided. o Remaining balance due was not given after processing a payment. o Did not break down balance into past due and current. o Did not review premise notes with no impact.
o Did not advise of all services provided to returning
One Ca I I
custom erlpremise.

OA log Does Not Meet: ,.

Resoluti®n ---_ When critical information was not given, was incorrect or incomplete, but would not result in customer harm andlor interfere with another department.

Examples:
o All deposit waiver options were not discussed.
o Energy Assistance Programs were not offered.
o Did not review premise notes with impact.
o Information was delivered in a manner that confused the customer or compounded the issue.
o Did not advise of services provided to new customer/ new premise. o Deposit amount incorrect.

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When critical information was not given, was incorrect or incomplete and could or did result in customer harm and/ or interfere with another department.

Examples:
o AmortizatonlHold information.
o Options thatwere given to a customer were not available.

Fully Masts I Pardally Masts I Does Not Most Weight- 12 points 0 taneuit CSR QSDD I City of Redding 6272019 7: 49 AM 8 This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this information and violatingthese provisions is punishable by lave.

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2.4 Update account I Proper system utilization:

Expectation:

CSRs must update account information completely and accurately every time the customer has a service request or provides new information for their account such as contact information, service address information, and payment information.

CSR will:

Complete all actions in the system stated to the customer, Enter information correctly/ accurately in all applications and tools.

Completes all necessary actions for Amortizations, Budget Billing, Account Holds, EFT, Auto Pay, and Energy Assistance.

Connect A / Reconnect! Transflsr I Disconnect Al Service:

When appropriate, use an account previously associated with the premise ( land lord accounts).

Create the using appropriate order type.

Complete Equifax on all applicable persons.

Schedule the order correctly.

Updated appropriate account information ( mailing address, phone number, etc.) Add or remove budget billing, auto pay, pdd, etc when applicable.

Creates all connect orders from the premise view.

When: Throughoutthe interaction as needed.

One Call
Resolution
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Otaneuil. CSR QSDD i Cityof Redding 6272019 T49 AM 9
This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this information and violating these provisions is punishable by hoot.

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2.4 Update account/ Proper system utilization: continued QAto log Fully Raais:

When all applicable expectations are met.

CA to log Partially
When non- critical, low impact, expectations were not met.

Examples:
o Customer information added/ updated inaccurately( misspelling, digit incorrect, etc.)
o New account created rather than use previously associated account.
o Late Charge not waived.
o Failed to update PDD on transfer order.
o Did not create connect order from premise view.

QAto log povs Not Maet,_
E
When critical information was not given, was incorrect or incomplete, but would not result in customer harm andlor interfere with another department.

Examples:
o Service order created incorrectly with low impact.
o PDD not set or not set correctly.
o Third Party not added correctly
o Customer information not addedlchanged when requested L _ 0A.to log Section Fail 1rasul?s in 40paintimpact).-.

When critical information was not given, was incorrect or incomplete and could or did result in customer harm andlor interfere with another department.

Examples:
o Did not add amortizatonJhold correctly.
o Service order created incorrectly with high impact.

QA to log NA
When all expectations were not applicable during the interaction.

MesaSPartWly Meets Does
O taneuit CSR QSDD I City of Redding 16/ 27/ 2019 7: 49 AM 10 This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this information and violating these provisions is punishable bylaw.

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3. 1 Professionalism
Expectation:

CSRs are expected to remain courteous and professional throughoutthe call providing a positive customer service experience.

Voice tone that is upbeat, friendly, sincere and with inflection.

Use of a comfortable cadence thatis notrushed. Adjust rate of speech based on customer' s need or request.

Politeness and use of" please" and" thank you' when appropriate throughout the interaction.

Use of complete sentences when asking the customer for information.

Personalize by using the customer' s name throughoutthe interaction.

Present information clearly, using language that the caller can easily understand.

Refrain from using acronyms/ industry jargon.

Being an advocate for the customer.

Sounding confident.

The CSR is expected to provide empathetic statement( s) to show understanding of the customer' s situation and convey sincerity.

CSR apologizes to the customer for situations we have not created.

CSR acknowledges the customer when helshe shares a difficult or positive circumstance and provides appropriate statements of empathy.

Avoids blame using" they" instead of" we".

CSR speaks clearly and expresses confidence when giving information and/ or answering questions.

CSR avoids phrases that demonstrate uncertainty such as " I don' t know", Customer maybe", " I' m not sure", and repeated use of" um".

Experience When: Throughoutthe interaction,
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0 faneuil CSR QSDD I City of Redding 16/ 27/ 2019 T49 AM 11 This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this information and violatingthese provisions is punishable by law.

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3. 1 Professionalism, continued
QAto log Fully Mems:

When all applicable expectations are met and exhibited throughout the interaction.

CSR Skillfully recovers when a customer displays dissatisfaction.

Overall call flow results in a customer compliment and or excellent experience.

When CSR uses acknowledgment or empathy statement(s) that is descriptive and detailed demonstrating that they were listening throughout the interaction.

When applicable expectations were achieved throughout most of the interaction but not all.

When CSR is professional, but tone of voice is not upbeat, friendly, or has minimal inflection
When complete sentences were not used, and the CSR does not Customer sound/ display confidence.

When acknowledgment or empathy statement are not descriptive and Experience personalized to the customer' s situation.

QAtn log Does NotM9wt
CSR' s has improper tone of voice, rudeness, lack of confidance, or not displaying a willingness to help.

When the CSR does not display accountability on behalf of the company CSR said or did something that led to the direct result of the customer becoming angry or upset.

QA to l og Auto Fail:

When the CSR uses any profanity during the interaction with or directed at the customer.

If the CSR intentionally disconnects or transfers the customer as a method of call avoidance.

When the CSR is being argumentative with the customer.

When the CSR raises their voice to a level thatmay be perceived as yelling or
M
talking down to the customer.

Meets I PardWly Does
S taneuit CSR QSDD l City of Redding 16/ 27/ 2019 7: 49 AM 12 This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this information and violating these provisions is punishable bylaw.

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3.2 Call Control:

Expectation:

CSR maintains control of the call by minimizing non- business- related conversations and redirecting the customer as needed.

CSR does not add unnecessary information to the conversation with the customer which may overwhelm or confuse them.

CSR stays on topic and avoids discussing things that we cannot do. Examples of this are personal circumstances & opinions.

Maintain control of the call.

Frm but polite while keeping call on track, if necessary.

Avoid long pauses or silences. No more than 30 seconds of unexplained pauses or silence.

Refrain from talking over or interrupting the customer.

If an interruption is needed, apologize then regain control of call.

The CSR should ensure the issue is beyond their scope before transferring to another person or group.

Escalations:

The CSR should make at least one attemptto deescalate the call by identifying the reason for the call and to see if they can resolve the issue before transferring customer to the next level.

If customer refuses assistance from CSR and insists to speaking to the next level, Customer the CSR must ask customer to be placed on hold and advise that call will be transferred or inform the customer that the next level will return their call.

Experience If the customer is not requesting to escalate, the CSR should not ask the customer if they would like to speak to my next level or escalate further.

When: Throughout the interaction.

QAo t
Iog Fully Mama:

When all applicable expectations are met throughout the interaction.

When CSR` s interaction results in de- escalation with positive customer experience.

QAto IogPerdelly Meets:

CSR unnecessarily provides duplicate information to customer.

CSR confuses customer with too much information.

CSR asks for information already provided.

CSR meets most of the expectations but not all.

When customer leadsicontrols the interaction.

When CSR allows or encourages the interaction to" jump" from one topic to another.
7-- QA to l og Does N at' M set
When all applicable expectations are not met.

When CSR refused to transfer the call to a Supervisor as per customers request.

When the CSR is the result of the escalation. t f
i
Fully 61 sets I Par! all Me9ts1DoesNatM99US
Ofaneuit CSR QSDD I City of Redding 1627/ 1019 T49 AM 13 This document contains confidential and proprietary information for Faneuil employees only.

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3.3 Proper hold 1 mute! transfer procedures:

Expectation:

There will be times when CSRs will have to place our customers on hold to research an account or seek assistance from our leaders. There are times we will need to transfer the customer to another group. CSRs are expected to follow proper etiquette for hold, mute, and transfer.

Hold/ Mute:

CSR asks the customer' s permission to be placed on hold.

CSR mustwait for approval from customer before placing the customer on hold.

CSR mustthank the customer when coming back from every hold.

The CSR is expected to update the customer from hold every 2 minutes.

CSR should place customer on hold only as needed and must provide a reason of the hold to the customer.

Set proper hold expectation with the customer. When" hold" is stated, it is expected for the customer to be placed on hold and not utilize mute. When staying on the line with the customer, do not say ' hold' and the CSR is expected to let them know they will be on the line with them, Mute is to be utilized only when the CSR needs to cough, sneeze, clear throat, etc....

Mute is not to be utilized in lieu of placing the customer on hold when the CSR states they will be placing you on hold.

Cust®mer
Suggested Verbiage( Hold)
Do you mind if 1 place you on briefho/ d while 1 get that information foryou? Experience Thank you for wailing,( customer's name)."
Doyou mind if 1 place you on for a few minutes while 1 get thatinfcrmaTon for you2 Thank you for wailing, customer' s name). "
Transfer:

CSR must ask probing questions before transferring the call.

CSR must wait for approval from the customer before placing the customer on hold to transfer the customer.

Transfer only if appropriate and offer the direct dial number for the future use when applicable.

As part of section 4. 3( Proper Closing), the CSR will ask if there is anything else that we can do to help and thank the customer for calling City of Redding.

Transferring to the wrong group or departmentwill count under section 2. 3 Provide complete and accurate information.

Warm or cold transfer to DepartmentlGrouplEmployee following appropriate guidelines
Suggested Verbiage( Transfer):
1 would be happy to transferyou to aur( name of department), who can best assistyou with your concern."
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Anyone receiving this information and violatingthese provisions is punishable by law.

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3.3 Proper hold 1 mute t transfer procedures, conrYnued When: Throughoutthe interaction. Never atthe very beginning of the interaction.

L OA to Iog Fully Meft,
When all expectations are met.

QA to Iog Partially Meets: j
When a majority or most of the expectations are met, but not all.

Customer CA to I o g Does Not Wlset W
Experience 0 When all or multiple expectations for hold, mute, and transfers are not met When the CSR does not successfully transfer the customer.

When CSR puts the customer on mute in place of hold and does not explain that to customer.

When CSR places the customer on hold unnecessarily.

When CSR places the customer on hold atthe very beginning ofthe interaction.

L QAto llog Nr4
When hold is not utilized or Transfer not needed during the interaction.

Does Not Meets/ NA
Ofaneuil CSR QSDD I City of Redding 1627/ 2019 TO AM 15 Mis document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this information and violating these provisions is punishable by lay.

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4. 1 Documentation:

Expeaation:

Completely documenting actions and items discussed with the customer are important tools to log communication. Notations will be logged for every interaction regarding a customer' s account.

Notes must be complete and accurate containing all actions performed and topics discussed.

The CSR is expected to use correcttasks and comment format in the appropriate areas.

Task type chosen should best describe the reason for the interaction.

Multiple tasks are not required. Include all notes regarding the interaction in a single task. The exception would be when multiple letterslmessages to back office departments are required for the interaction.

Complete and accurate documentation also includes communication to other departments, emaiIs, etc. These documents must contain proper grammar, spelling of customer' s info and accurate customer information. Avoid entering unknown acronyms and texting lingollanguage( i. e. ttyl, Im, lol, u, b/ c, bc, b4, etc.) Every interaction with the customer requires a notation( including hang- ups, Closing escalations, and call backs).

For Emergency Order and/ or Escalations, note actions taken in response to the situation,
CSR is expected to note required technician actions such as M/ R Messages. n: Throughoutthe interaction. Every interaction.

QA 010og Fully Maim:

When all applicable items listed in the expectation section are appropriately met.

L : QA to I o g Do®s Not Mean:

When notes are missing important details of actions performed or information provided. Missing information/ details that would be helpful if the customer calls back.

When notations are incomplete and or inaccurate.

When notes are not clear, concise, or have misspellings& grammatical errors, and all other notation expectations are met.

When key information is included in the notes, but minor( not call impacting) details are left out.

Does Not M set
0 faneuil CSR QSDD I City of Redding 16/ 27/ 2 01 9 7: 49 AM 16 This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this information and violatingthese provisions is punishable by lana.

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4.2 Summary
Expectation:

CSR must provide a complete summary for all Service Orders scheduled and Amortizations set.

Service Orders- must provide:
o Type of order
o Schedule date
o Service address
o All applicable fees( deposits, installments, and other fees) o Sample Script "! have scheduleda disconnectorderforJuly 31"' fcrAhe address 123 Main Street. Your$ 200 deposit will be billed cutin 4 Installments over your first 4 bills. is every,47ing correct?"
Amortizations- must provide:
o Amount of each amortized payment
o Amortized statement
Closing CSR can also choose to provide a short recap of information provided during call.

Sample script Mr. Smith,! have providedyou wizhycurbalance, due daz, and energy assistance apzicns."
When: Summaries are typically provided near the end of the calla However, when an action taken was summarized earlier in the call, the summary does not need repeated near the end of the call.
j- QAto log Fully Meets:

When all expectations are met.

QA to l o g Does N of M eats;'.

When all expectations are not met.

QA to log NA
When the customer disconnects the interaction before a summary can be given.

When the customer' s tone/word choicelpace indicates thatthey are wanting the interaction to end prior to summary beinq qiven.

Does Not Meets I NA
Ofaneuil CSR QSDD I Cityof Redding l 6272019 7: 49 AM 17 This document contains confidential and proprietary information for Faneuil employees only.

Anyone receiving this information and violatingthese provisions is punishable by law.

Packet Pg. 162 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) aeo
Solid
Ee tr;
Waste
QSDD - City of Redding X2. 2
Storm
p v wastewater Call Quality Guidelines

4.3 Proper Closing:

Expectetiion:

CSR is required to ask the customer if there is anything else that we can do to assist them before providing the closing statement and after summarizing actions taken.
o CSR checks for customer' s understanding.
o CSR confirms they answered all of the customer' s questions, verifying if multiple questions were asked, all were answered.
o CSR can, but is not required to, brand using City of Redding Utrlives'. o Proper closing should be clear and not sound rushed.
o CSR thanks the customer for calling, displays appreciation ' thank you". o When asking the customer" anything else", if the customer has an additional request that requires an in- depth response or action, the CSR should ask if the customer needs anything else again before ending the call. o
It is not required to ask anything else a 2nd time if the customer' s request can be provided in a quick response.

When: At the end of the interaction. After providing summary.

Suggested verbiage:

Is; dere anything else l can assistyou with?"
Is there anything else I can do foryou?"
Closing Do you have any additional questions?"
Did 1 hande all ofyourrequesls today?"
We appreciate you being a part of City of Redding Utilities. Have a great day." Thankyou for calling, enjoy your day."
Ji was a pleasure speaking with you today. Thankyou for choosing City of Redding UNI es. "
When applicable for difficult interactionslsituatons, the agent can close with Thank you for calling.

QA to logFully
When all expectations are met.

When the customer disconnects the interaction before all of the proper closing can be asked or stated.

QA to I o g Does N of M sets:

When CSR does not ask if there is' anything else' or confirm all needs are met at the end of the interaction.

When CSR does not ask anything else before transferring the customer.

QAto- log NAWhen the customer disconnects the interaction before a closing can be given. i
When the customer' s tone/ word choicelpace indicates that they are wanting I
the interaction to end prior to a full closing being given.

Grading Scale: Fulty Moats I Does Not Maeft/ NA
0 faneuil CSR QSDD I City of Redding 16272619 T49 AM 18 This document contains confidential and proprietaryinformation for Faneuil employees only Anyone receMng this information and violatin gthese provisions is punishable by lave.

Packet Pg. 163 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report) Exhibit B

TERM SHEET
The purpose of this term sheet is to set forth the material pricing terms and conditions under which Faneuil, Inc. (" Consultant") and the City of Redding(" City") will execute a contract for services being provided by Consultant to the City. The parties agree to the following:

1. The Parties agree that the terms of the contract between Consultant and the City will be for a period of 7 years.

2. ' Consultant shall submit monthly invoices to City for work completed.

3. Pricing during the contract term shall be as follows:

The Billed Rate Per Hour rate( s) as outlined in the table below, are firm for years one( 1) and two ( 2), and will be subject to inflationary increases tied to the Consumer Price Index( CPI) for the remaining contract years three( 3) through seven( 7), and any contract extensions thereafter. The increase shall utilize the percentage increase in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics in the preceding twelve- month period. The applicable increase shall be calculated on the latest available figure for the percentage increase in the Index at the beginning of the last month of the previous twelve months immediately prior to the applicable anniversary. Notwithstanding the foregoing, the annual Indexation applied to the Fees shall not exceed 6% in any given year.

Consultant based its proposed pricing on an all- inclusive hourly productive billed rate for each customer service representative. This fully burdened rate shall include all operational overhead costs for a fully functioning call center to include: compensation, management and supervisory staff, support staff, facilities, utilities, computers, software, equipment, telecommunications and networking, long- distance charges, training and quality support, reporting, ancillary services, taxes, licensing and other fees. A Productive Hour is defined as time that an agent is logged in and available to take calls.

All inclusive pricing based on Productive Hour:

Yearl
Billed Rate Estimated Annual Total Billable Cost
Labor Category Per Hour Productive Hours Not to Exceed
Contact Center CSR 52. 67 16, 430 865, 368. 10
Year
Billed Rate Estimated Annual Total Billable Cost
Per Hour Productive Hours Not to Exceed
Contact Center CSR 54. 26 16, 430 891, 491. 80
Year9*
Billed' Rate Estimated Annual Total Estimated
Per Hour Productive Hours Billable Cost
ContactCenter, CSR - 55. 34 16, 430 909, 236. 20
Year4*
Billed Rate, Estimated Annual, .: Total Estimated
4 Per":Hour:' Productive Hours'. Billable cost '
i
ContactCenterCSR dt $ 56. 42 16, 430, 926, 980. 60
1 a r BUled" Rate EstimatedAnnual W. TAaLEstimated
Producti e.Hours B illable' Cosi`
Contact`_CenterCSR 57. 52 16, 430; 945, 053. 60
Year 3, 4 and 5 Billed Rate Per Hour, and any contracted years thereafter, will be adjusted by mutual agreement based on CPI.
36 Packet Pg. 164 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report)

4. The following assumptions were made in determining the pricing submission:

Consultant will continue to provide a Call Center in Scottsbluff, Nebraska where our core group of" Dedicated Assigned CSR' s" and key management staff will be located.

Consultant' s proposed price solution reflects firm pricing for the first two( 2) years of the contract. The Billed Rate Per Hour for the remaining five( 5) years of the contract term, and any subsequent contract renewal terms, will be subject to mutually agreeable price changes based on the CPI as defined above, negotiated changes in pricing structure, or re- pricing depending on the magnitude of any SOW changes for the renewal periods.

In accordance with the RFP and Pricing requirements, Consultant' s staffing projections include operational and functional staff to support varying levels of forecasted volumes.

Billable rates include labor for all staff positions, taxes and benefits, facility cost, communication cost, operational travel, training and procurement cost.

The billable productive hour rate( s) as outlined in the table above, will be subject to inflation increases tied to the Consumer Price Index( CPI) as described above, for contract years three( 3) thru seven ( 7).

5. The Parties agree other substantive business terms such as service levels, escalation procedures, etc. as specified in the Statement of Work( Exhibit A).

6. Material contractual terms shall be consistent with the master contract exchanged between the parties.
37 Packet Pg. 165 Attachment: Attachment 2 - Faneuil, Inc. Contract (9.5(b)--Receive the Utility Customer Services Call Center Report)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Accept the Fiscal Year 2026 Year-End Budget Report; and (2) Adopt Resolution approving and adopting the 61st Amendment to City Budget Resolution No. 2025-049 increasing Fiscal Year 2026 appropriations by $4,496,560.

Fiscal Impact
The amendment increases General Fund appropriations by $3,679,360, to $129,033,394. It also increases appropriations by $253,060 in Electric, $133,620 in Solid Waste, $386,680 in Fleet Maintenance, and $43,840 in Parking. These adjustments address Fiscal Year (FY) 2026 personnel, vehicle maintenance and other operating costs. No additional ongoing General Fund revenue is proposed with this item.

The resolution funds the amendment with $4,109,880 of beginning fund balance in the General, Parking, Electric and Solid Waste funds, plus $386,680 in Fleet Services Allocation revenue.

Fleet revenue offsets its additional expenditure authority; the related utility charges do not create a second Citywide external cost.

Alternative Action
The Council may request additional information, modify or defer the proposed budget amendment, or provide alternate direction regarding the report and year-end adjustments.

MEETING DATE: October 6, 2026
ITEM NO. 9.10(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.10(a)--Consider the City of Redding's Year-End Budget Review and associated Resolution for Fiscal Year Ended 2026.

Joseph Bowers, Interim
Finance Director
Packet Pg. 166
Report to Redding City Council October 1, 2026
Re: 9.10(a)--Year End Budget Review and Budget Resolution Page 2 Background/Analysis
The year-end review presents preliminary budgetary results for the fiscal year ended June 30, 2026. General Fund revenue and net transfers totaled $114.1 million, or 92.4% of the $123.5 million amended forecast. The $9.4 million shortfall was concentrated in transfers and intergovernmental revenue. Total taxes exceeded the revised forecast by $1.2 million, but remained $1.1 million below the original adopted estimate following reductions to the tax forecast during the year.

The General Fund revenue budget increased by $13,093,537, from $110,413,310 as originally adopted to $123,506,847 as amended. The following reconciliation identifies each adjustment.

General Fund revenue reconciliation in dollars
Revenue category Adjustment or budget total Amount ($)
Original adopted budget 110,413,310
Total Taxes Midyear sales tax adjustment (1,720,000)
Total Taxes Midyear transient occupancy tax adjustment (236,000) Total Taxes Midyear business license tax adjustment (264,000) Total Taxes Midyear cannabis tax adjustment (160,000)
Licenses & Permits Engineering grading permits reclassification 630,000 Fines & Penalties Red light camera revenue omitted from adopted budget 550,950
Transfers & Internal
Depts Rolling stock 1,970,540
Transfers & Internal
Depts Gas-tax reappropriation 8,509,440
Other Governmental Redding Rancheria 3,250,000
Other Governmental Boating grant correction pending 42,000 Other Revenue Recreation donations 47,785
Charges for Current
Services Engineering grading permits reclassification (630,000) Charges for Current
Services Fire overtime reimbursement revenue 1,046,964
Charges for Current
Services
Lobby coffee revenue omitted from adopted
budget 55,858
Net adjustments 13,093,537
Amended budget 123,506,847
Packet Pg. 167
Report to Redding City Council October 1, 2026
Re: 9.10(a)--Year End Budget Review and Budget Resolution Page 3 The increase principally reflects $10.48 million in gas-tax and rolling-stock adjustments and $3.25 million from Redding Rancheria, partly offset by $2.38 million in reduced tax estimates.

The $630,000 grading-permit reclassification has no effect on total revenue. Fire overtime reimbursement revenue is associated with emergency-response costs. The Rancheria receipt supported FY2026 and should be distinguished from recurring revenue in the Ten-Year Plan.

Accordingly, the net budget increase does not represent comparable growth in recurring revenue available for general operations.

The amended total includes the $42,000 boating grant identified for correction. That amount remains in this reconciliation pending correction of the budget record.

General Fund expenditure appropriations increased by $15,543,269, from $109,810,765 as originally adopted to $125,354,034 as amended. The following reconciliation precedes the additional $3,679,360 General Fund amendment proposed with this item.

General Fund expenditure reconciliation in dollars
Department or
category Adjustment or budget total Amount ($)
Original adopted budget 109,810,765
Multiple departments Midyear adjustments 585,090
Community Services Sports Park amendment 28,010
City Clerk Election costs 10,000
Animal Regulation Circle 6 adjustment 610
City Attorney Budget adjustment 79,730
Fire Breathing apparatus (SCBA) 641,940
Non-Departmental Downtown improvement district 5,000
Non-Departmental Air quality adjustment 182,210
City Clerk Elections carryforward 77,244
Police Red light camera program 439,824
Multiple departments Rolling stock 1,549,982
Fire Overtime 1,046,964
Fire Grant-related expenditure adjustment 77,160
Recreation Programs Lobby coffee operations 55,858
Recreation Programs Recreation spending funded by donations 47,785 Other Other net budget adjustments 282,152
Amendments subtotal 5,109,559
Reappropriations FY2025 carryovers into FY2026 10,433,710 Total amendments and reappropriations 15,543,269
Amended budget 125,354,034
Packet Pg. 168
Report to Redding City Council October 1, 2026
Re: 9.10(a)--Year End Budget Review and Budget Resolution Page 4 Reappropriations account for approximately 67% of the increase and include $8,509,440 for Streets capital projects. These amounts carry prior-year spending authority into FY2026 and do not represent equivalent growth in recurring operating costs. The $1,046,964 Fire overtime amendment matches the reimbursement revenue adjustment shown above. Other comprises $282,152 of net budget adjustments not identified by purpose in the amendment detail.

Actual General Fund expenditures were $117.9 million. Net encumbrances and commitments of $2.6 million brought total budget consumption to $120.4 million, leaving $4.9 million against the $125.4 million amended budget. Streets capital accounted for $4.8 million of that balance.

Unspent project authority therefore explains nearly all of the favorable fund-level expenditure variance and should not be treated as recurring operating savings.

The May quarterly report identified both the pace of Streets spending and the timing of gas-tax transfers as drivers of the revenue variance. At year end, related expenditure and reimbursement entries must be reconciled together. Separately, the March midyear report identified a $3.25 million Redding Rancheria receipt without associated expenditures. This resource supported FY 2026 but should be distinguished from recurring revenue.

The Financial Advisory Committee (Committee) met on September 17, 2026, and discussed updating the financial reports and attachments that the Council receives. The Committee plans on addressing these at future Committee meetings and proposing updates. Future staff reports may look different based on recommendations from the Committee and approval by Council.

General Fund Reserves
The June Cash by Fund report shows a preliminary Fund 101 cash balance of $4,849,176, including the estimated gas-tax transfers described in the year-end review. Final cash remains subject to completion of the year-end close and audit. The separately reported General Fund grant and capital-project cash balances cannot be added to available operating reserves without evaluating their restrictions and commitments.

Council Policy 412 calls for an estimated unreserved year-end cash balance of at least 10 percent of projected expenditures throughout the long-range financial plan. The March midyear review reported that the plan fell below that requirement. The preliminary June balance provides a limited operating cushion, and acceptance of this report does not resolve that reserve deficiency.

General Fund Overtime
Reported overtime was $6.33 million against a $4.61 million budget, an overrun of $1.72 million. Fire and Police accounted for approximately 90 percent of the overrun. The amounts below are gross expenditures before related reimbursements.

Packet Pg. 169
Report to Redding City Council October 1, 2026
Re: 9.10(a)--Year End Budget Review and Budget Resolution Page 5 Overtime by department in thousands of dollars
Department Budget Actual Over budget
Fire 3,067.0 4,325.5 1,258.5
Police 1,469.0 1,756.4 287.4
Community Services 0.0 150.4 150.4
Public Works 75.0 95.9 20.9
Other departments 0.0 4.5 4.5
Total 4,611.0 6,332.7 1,721.7
Out-of-area fire assignments increase both the Fire Department’s overtime budget and actual expenditures. FY 2026 billings to other agencies for these assignments were approximately $1.1 million. Gross overtime expenditures should therefore be evaluated with the related reimbursement revenue to determine the net General Fund cost.

Budget Requests
The resolution proposes the following net FY 2026 appropriation changes.

Fund or department Net increase
General Fund - City Council $53,560
General Fund - City Manager $306,060
General Fund - City Attorney $5,400
General Fund - Police $1,726,940
General Fund - Fire $1,587,400
General Fund subtotal $3,679,360
Electric Utility $253,060
Solid Waste Utility $133,620
Fleet Maintenance $386,680
Parking $43,840
Total appropriation increase $4,496,560
General Fund requests include $53,560 for Council health insurance; $180,470 for City Manager accrued vacation and $125,590 for regular salary; and $5,400 for City Attorney recruitment.

Approximately $400,000 of existing Non-Departmental appropriations for retirement payouts and similar personnel costs will cover the balance of the City Manager overrun, limiting its requested increase to $306,060. Police requests $1,328,840 for semiannual holiday pay, $327,580 for accrued leave and $70,520 for fuel. Fire requests $1,256,500 for overtime and $330,900 for accrued leave. Payouts for semiannual holiday pay were not included in the FY 26 budget in error (a request will be included in the FY27 mid-cycle budget resolution to correct this error going forward).

Packet Pg. 170
Report to Redding City Council October 1, 2026
Re: 9.10(a)--Year End Budget Review and Budget Resolution Page 6 Electric and Solid Waste fund their respective $253,060 and $133,620 shares of additional Fleet charges. Fleet receives $386,680 in both revenue and expenditure authority. The March midyear review had already identified higher vehicle repair costs, including parts, tires, batteries and oil products. The additional request supports a review of future Fleet allocations and repair-cost assumptions.

Parking increases Operations appropriations by $62,230 and reduces Enforcement appropriations by $18,390, for a net $43,840 increase funded from beginning fund balance. The account detail includes $88,300 in increases and $44,460 in reductions. The budget adjustment does not by itself eliminate the Parking Fund cash deficit.

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

Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Attachments
Budget Resolution
FY26 Year-End Budget Report
Cash by Fund June 2026
Packet Pg. 171
Resolution No. 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:

Fiscal Year Ended 2026
Fund Department Description Increase Decrease
101 1001 City Council 53,560 -
101 1011 City Manager 306,060 -
101 1031 City Attorney 5,400 -
101 1401 Police - Administration 70,170 -
101 1402 Police - Field Operations 1,316,080 -
101 1403 Police - Investigations 266,300 -
101 1404 Police - Serivces 74,390 -
101 1501 Fire - Administration 134,180 -
101 1502 Fire - Suppression 1,394,470 -
101 1503 Fire - Prevention 58,750 -
175 5211 Parking System - Enforcement - 18,390
175 5201 Parking System - Operation 62,230 -
211 8003 REU - Interdepartmental 253,060 -
251 6502 Residential Garbage Collection 133,620 -
351 3501 Fleet 386,680 -
- -
THAT account titles and numbers requiring adjustments by this Resolution are as follows:

Fiscal Year Ended 2026
Decrease (Increase) Fund Balance Use of Funds Source of Funds 101 0000 2910000 00000 0000000000 Beginning Balance 3,679,360 175 0000 2910000 00000 0000000000 Beginning Balance 43,840 211 0000 2910000 00000 0000000000 Beginning Balance 253,060 251 0000 2910000 00000 0000000000 Beginning Balance 133,620 Increase (Decrease) in Revenues Use of Funds Source of Funds 351 3351 3191100 Fleet Services Allocation 386,680
Expenditures Use of Funds Source of Funds
101 1001 4009031 00000 0000000000 Health Insurance Employer 53,560 101 1011 4005001 00000 0000000000 Accrued Pay - Vacation 180,470 101 1011 4004001 00000 0000000000 Full Time Regular 125,590 101 1031 5042501 00000 0000000000 Recruiting Expense 5,400 101 1401 4005051 00000 0000000000 Semi-Annual Holiday Pay 70,170 101 1402 4005051 00000 0000000000 Semi-Annual Holiday Pay 1,015,160 101 1403 4005051 00000 0000000000 Semi-Annual Holiday Pay 220,100 101 1404 4005051 00000 0000000000 Semi-Annual Holiday Pay 23,410 101 1402 4005001 00000 0000000000 Accrued Pay - Vacation 76,130 101 1402 4005011 00000 0000000000 Accrued Pay - Sick Leave 97,740 101 1402 4005031 00000 0000000000 Accrued Pay - Comp Time 50,440 101 1402 4005041 00000 0000000000 Accrued Pay - Birthday Leave 6,090 101 1403 4005001 00000 0000000000 Accrued Pay - Vacation 16,190 101 1403 4005011 00000 0000000000 Accrued Pay - Sick Leave 16,360 101 1403 4005031 00000 0000000000 Accrued Pay - Comp Time 7,440 101 1403 4005041 00000 0000000000 Accrued Pay - Birthday Leave 6,210 101 1404 4005001 00000 0000000000 Accrued Pay - Vacation 9,010 101 1404 4005011 00000 0000000000 Accrued Pay - Sick Leave 35,490 101 1404 4005031 00000 0000000000 Accrued Pay - Comp Time 6,480 101 1402 5077501 00000 0000000000 Vehicle Fuel & Lubricant 70,520 101 1501 4005001 00000 0000000000 Accrued Pay - Vacation 12,800 A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 61st AMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049 INCREASING APPROPRIATIONS BY $4,496,560 FOR FISCAL YEAR 2025-26.
61st AMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049